223 
tractor or charterer, or a holding company, subsidiary, affiliate, or associate 
of the contractor or charterer, or an officer, director, agent, or executive 
thereof, directly or indirectly— 
‘‘(1) owns, charters, or operates a vessel engaged in the domestic 
intercoastal or coastwise service; or 
‘‘(2) owns a pecuniary interest in a person that owns, charters, or 
operates a vessel in the domestic intercoastal or coastwise service. 
‘‘(b) WAIVER.—A person may apply to the Secretary of Transportation 
for a waiver of subsection (a). Before deciding on the waiver, the Secretary 
shall give the applicant and other interested persons an opportunity for a 
hearing. The Secretary may not grant the waiver if the Secretary finds it 
would— 
‘‘(1) result in unfair competition to a person operating exclusively in 
the domestic intercoastal or coastwise service; or 
‘‘(2) be prejudicial to the objectives and policy of this subtitle. 
‘‘(c) CONTINUOUS OPERATION SINCE 1935.—The Secretary shall grant 
an application under subsection (b) without requiring further proof that the 
public interest and convenience will be served and without further pro-
ceedings as to the competition in the route or trade, if the contractor or 
other person, or a predecessor in interest, was in bona-fide operation as a 
common carrier by water in the domestic intercoastal or coastwise trade in 
1935 over the route or in the trade for which the application is made and 
has so operated since that time or, if engaged in furnishing seasonal service 
only, was in bona-fide operation in 1935 during the season ordinarily cov-
ered by its operation, except in either event as to interruptions of service 
over which the applicant or its predecessor in interest had no control. 
‘‘(d) DIVERSION INTO INTERCOASTAL OR COASTWISE OPERATIONS.—If 
an application under subsection (b) is approved, a person referred to in this 
section may not divert, directly or indirectly, money, property, or any other 
thing of value, used in a foreign-trade operation for which a subsidy is paid 
by the United States Government, into intercoastal or coastwise operations. 
‘‘§ 58102. Default on payment or maintenance of reserves 
‘‘The Secretary of Transportation may supervise the number and com-
pensation of all officers and employees of a contractor under the operating- 
differential subsidy program or a charterer under chapter 575 of this title, 
receiving an operating-differential subsidy, if the contractor or charterer— 
‘‘(1) is in default on a mortgage, note, purchase contract, or other 
obligation to the Secretary; or 
‘‘(2) has not maintained, in a manner satisfactory to the Secretary, 
all of the reserves provided for in this subtitle. 
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‘‘§ 58103. Employing another person as managing or oper-
ating agent 
‘‘(a) PROHIBITION.—Except with the written consent of the Secretary of 
Transportation, a contractor holding a contract under the operating-dif-
ferential subsidy program or under chapter 575 of this title may not— 
‘‘(1) employ another person as the managing or operating agent of 
the operator; or 
‘‘(2) charter a vessel, on which an operating-differential subsidy is 
to be paid, for operation by another person. 
‘‘(b) APPLICABILITY OF PROVISIONS TO CHARTERER.—If a charter pro-
hibited by this section is made, the person operating the chartered vessel 
is subject to all the provisions of this subtitle and the operating-differential 
subsidy program, including limitations of profits and salaries. 
‘‘§ 58104. Willful violation constitutes breach of contract or 
charter 
‘‘A willful violation of any provision of sections 58101–58103 of this title 
constitutes a breach of the contract or charter. On determining that a viola-
tion has occurred, the Secretary of Transportation may declare the contract 
or charter rescinded. 
‘‘§ 58105. Preferences for cargo in which charterer has inter-
est 
‘‘A contractor receiving an operating-differential subsidy, or a charterer 
under chapter 575 of this title, may not unjustly discriminate in any man-
ner so as to give preference, directly or indirectly, to cargo in which the con-
tractor or charterer has a direct or indirect ownership, purchase, or vending 
interest. 
‘‘§ 58106. Concerted discriminatory activities 
‘‘(a) PROHIBITION.—A contractor receiving an operating-differential sub-
sidy, or a charterer under chapter 575 of this title, may not continue as 
a party to or conform to an agreement with another carrier by water, or 
engage in a practice in concert with another carrier by water, that is un-
justly discriminatory or unfair to any other citizen of the United States op-
erating a common carrier by water employing only vessels documented 
under the laws of the United States on an established trade route from and 
to a United States port. 
‘‘(b) GOVERNMENT PAYMENT PROHIBITED.—No payment or subsidy of 
any kind may be paid, directly or indirectly, out of funds of the United 
States Government to a contractor or charterer that has violated subsection 
(a). 
‘‘(c) CIVIL ACTION.—A person whose business or property is injured by 
a violation of subsection (a) may bring a civil action in the district court 
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225 
of the United States for the district in which the defendant resides, is 
found, or has an agent. If the person prevails, the person shall be award-
ed— 
‘‘(1) 3 times the damages; and 
‘‘(2) costs, including reasonable attorney fees. 
‘‘§ 58107. Discrimination at ports by water common carriers 
‘‘(a) PROHIBITION.—A common carrier by water may not, directly or in-
directly, through an agreement, conference, association, understanding, or 
otherwise, prevent or attempt to prevent any other common carrier by water 
from serving any port described in subsection (b) at the same rates the first 
carrier charges at the nearest port already regularly served by it. 
‘‘(b) PORTS.—A port referred to in subsection (a) is one that is— 
‘‘(1) designed for the accommodation of ocean-going vessels; 
‘‘(2) located on an improvement project authorized by law or by a 
Federal agency; and 
‘‘(3) located within the continental limits of the United States. 
‘‘(c) OTHER AUTHORITY NOT LIMITED.—This section does not limit the 
authority otherwise vested in the Secretary of Transportation and the Fed-
eral Maritime Commission. 
‘‘§ 58108. Charges for transportation subject to subtitle IV of 
title 49 
‘‘(a) PROHIBITION.—A carrier may not charge, collect, or receive for 
transportation subject to subtitle IV of title 49 of persons or property, 
under any joint rate, fare, or charge, or under any export, import, or other 
proportional rate, fare, or charge, that is based in whole or in part on the 
fact that the persons or property affected are to be transported to, or have 
been transported from, a port in a territory or possession of the United 
States or in a foreign country, by a carrier by water in foreign commerce, 
any lower rate, fare, or charge than the carrier charges, collects, or receives 
for the transportation of persons or similar property for the same distance, 
in the same direction, and over the same route, in commerce wholly within 
the United States, unless the vessel used for the transportation is or was 
at the time of the transportation documented under the laws of the United 
States. 
‘‘(b) SUSPENSION OF PROHIBITION.—Whenever the Secretary of Trans-
portation believes that adequate shipping facilities to or from any port in 
a territory or possession of the United States or a foreign country are not 
being provided by vessels documented under the laws of the United States, 
the Secretary shall certify this fact to the Surface Transportation Board. 
On receiving the certification, the Board may by order suspend the oper-
ation of subsection (a) with respect to the rates, fares, and charges for the 
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transportation by rail of persons and property transported from or to be 
transported to those ports, for such time and under such terms and condi-
tions as the Secretary may specify in the order or in any supplemental 
order. 
‘‘(c) TERMINATION OF SUSPENSION.—Whenever the Secretary believes 
that adequate shipping facilities are being provided to those ports by vessels 
documented under the laws of the United States, and certifies that fact to 
the Board, the Board may order the termination of the suspension. 
‘‘§ 58109. Penalties 
‘‘(a) INDIVIDUALS.—An individual convicted of violating section 
58101(d), 58103, or 58105 of this title shall be fined under title 18, impris-
oned for at least one year but not more than 5 years, or both. 
‘‘(b) ORGANIZATIONS.—An organization convicted of committing an act 
prohibited by this subtitle shall be fined under title 18. 
‘‘(c) INELIGIBILITY TO RECEIVE BENEFITS.—An individual or organiza-
tion convicted of violating a section referred to in subsection (a) is ineligible, 
at the discretion of the Secretary of Transportation, to receive any benefit 
under the construction-differential subsidy or operating-differential subsidy 
programs, or a charter under chapter 575 of this title, for 5 years after 
the conviction.’’. 
SEC. 9. SUBTITLE VI OF TITLE 46. 
(a) REDESIGNATION.—Title 46, United States Code, is amended by re-
designating subtitle VI as subtitle VII. 
(b) NEW SUBTITLE.—Title 46, United States Code, is amended by insert-
ing after subtitle V the following: 
‘‘Subtitle VI—Clearance, Tonnage Taxes, and 
Duties 
‘‘Chapter 
Sec. 
‘‘601. Arrival and Departure Requirements ...............................................
60101 
‘‘603. Tonnage Taxes and Light Money ........................................................
60301 
‘‘605. Discriminating Duties and Reciprocal Privileges ........................
60501 
‘‘CHAPTER 601—ARRIVAL AND DEPARTURE 
REQUIREMENTS 
‘‘Sec. 
‘‘60101.
Boarding arriving vessels before inspection. 
‘‘60102.
Production of certificate on entry. 
‘‘60103.
Oath of ownership on entry. 
‘‘60104.
Depositing certificates of documentation with consular officers. 
‘‘60105.
Clearance of vessels. 
‘‘60106.
State inspection laws. 
‘‘60107.
Payment of fees on departing vessel. 
‘‘60108.
Duty to transport tendered cargo. 
‘‘60109.
Duty to transport money and securities of the United States Government. 
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