I 
118TH CONGRESS 
1ST SESSION H. R. 2588 
To amend title 46, United States Code, to allow transportation of merchandise 
in noncontiguous trade on foreign-flag vessels, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 13, 2023 
Mr. CASE (for himself and Mr. MOYLAN) introduced the following bill; which 
was referred to the Committee on Transportation and Infrastructure, and 
in addition to the Committee on Education and the Workforce, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend title 46, United States Code, to allow transpor-
tation of merchandise in noncontiguous trade on foreign- 
flag vessels, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Noncontiguous Ship-
ping Relief Act of 2023’’. 
SEC. 2. TRANSPORTATION OF CERTAIN MERCHANDISE. 
(a) IN GENERAL.—Section 55102 of title 46, United 
States Code, is amended by redesignating subsection (c) 
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as subsection (d) and by inserting after subsection (b) the 
following: 
‘‘(c) NONCONTIGUOUS TRADE EXEMPTION.— 
‘‘(1) IN
GENERAL.—Subsection (b) shall not 
apply with respect to transportation in noncontig-
uous trade of merchandise on a foreign qualified 
freight vessel for which the Secretary of Transpor-
tation has issued a certificate of documentation 
under chapter 121. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) FOREIGN QUALIFIED FREIGHT VES-
SEL.—The term ‘foreign qualified freight vessel’ 
means a freight vessel (as that term is defined 
in section 2101) of not less than 1,000 gross 
tons that— 
‘‘(i) was not built in the United States 
(or if rebuilt, not rebuilt in the United 
States); 
‘‘(ii) is registered in a foreign country; 
and 
‘‘(iii) employs United States citizens 
to the extent required of vessels registered 
under section 12102. 
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‘‘(B) NONCONTIGUOUS TRADE.—The term 
‘noncontiguous trade’ has the meaning given 
such term in section 53501.’’. 
(b) 
COASTWISE
ENDORSEMENTS.—Section 
12112(a)(2)(B) of title 46, United States Code, is amend-
ed— 
(1) in clause (ii), by striking ‘‘or’’; 
(2) in clause (iii), by striking ‘‘and’’ and insert-
ing ‘‘or’’; and 
(3) by adding at the end the following: 
‘‘(iv) is a foreign qualified freight vessel 
(as defined in section 55102(c)) used for trans-
portation referred to in section 55102(c) for 
which the Secretary of Transportation has 
issued a certificate of documentation; and’’. 
(c) FOREIGN TRANSFER.—Section 56101(a)(2) of 
title 46, United States Code, is amended— 
(1) by striking ‘‘Paragraph (1)(A)’’ and insert-
ing: 
‘‘(A) 
FISHING
VESSEL.—Paragraph 
(1)(A)’’; and 
(2) by adding at the end the following: 
‘‘(B) FOREIGN QUALIFIED FREIGHT VES-
SEL.—Paragraph (1) does not apply with re-
spect to a foreign qualified freight vessel for 
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which the Secretary has issued a certificate of 
documentation after the date of enactment of 
the Noncontiguous Shipping Relief Act of 2023 
and that is used solely for transportation re-
ferred to in section 55102(c). 
‘‘(C) 
FOREIGN
REGISTRY.—A 
foreign 
qualified freight vessel may be placed under for-
eign registry without the approval of the Sec-
retary at any time after such vessel is issued a 
certificate of documentation. At such time as 
such vessel is placed under foreign registry, the 
Secretary shall revoke the certificate of docu-
mentation issued by the Secretary.’’. 
SEC. 3. CITIZENSHIP AND TRANSFER PROVISIONS. 
(a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS, 
AND ASSOCIATIONS.—Section 50501 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(e) EXCEPTIONS.—Subsection (c) and paragraphs 
(2) and (3) of subsection (b) shall not apply to a foreign 
qualified freight vessel (as such term is defined in section 
55102(c)) used for transportation referred to in section 
55102(c)(2)(B).’’. 
(b) APPROVAL OF TRANSFER OF REGISTRY OR OP-
ERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR 
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FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES.— 
Section 56101 of title 46, United States Code, is amended 
by adding at the end the following: 
‘‘(f) TRANSFER OF FOREIGN QUALIFIED FREIGHT 
VESSELS.—To promote the transfer of foreign qualified 
freight vessels to be documented under chapter 121 of this 
title for use for transportation referred to in section 
55102(c)(2)(B) of this title, the Secretary may grant ap-
proval under subsection (a) with respect to such a vessel 
before the date the vessel is documented. 
‘‘(g) FOREIGN QUALIFIED FREIGHT VESSEL DE-
FINED.—In this section, the term ‘foreign qualified freight 
vessel’ has the meaning given such term in section 
55102(c) of this title.’’. 
SEC. 4. LABOR PROVISIONS. 
(a) LIABILITY FOR INJURY OR DEATH OF MASTER 
OR CREW MEMBER.—Section 30104(a) of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: ‘‘In an action brought under this section against 
a defendant employer that does not reside or maintain an 
office in the United States (including any territory or pos-
session of the United States) and that engages in any en-
terprise that makes use of one or more ports in the United 
States (as defined in section 2101 of this title) jurisdiction 
shall be under the district court most proximate to the 
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place of the occurrence of the personal injury or death that 
is the subject of the action.’’. 
(b) ELECTION TO UNDER PARTICIPATE LONGSHORE 
AND HARBOR WORKERS’ COMPENSATION ACT.—Section 
30104 of title 46, United States Code, is amended by add-
ing at the end the following: 
‘‘(c) PARTICIPATION IN AN AUTHORIZED COMPENSA-
TION PLAN.—The employer of a master or member of the 
crew of a vessel may participate in an authorized com-
pensation plan under the Longshore and Harbor Workers’ 
Compensation Act (33 U.S.C. 901 et seq.). An employer 
that participates in such a plan is subject to such Act. 
If an employer participates in an authorized compensation 
plan under such Act— 
‘‘(1) a master or crew member employed by 
such employer shall be considered to be an employee 
for the purposes of such Act; and 
‘‘(2) the liability of that employer under such 
Act to the master or crew member, or to any person 
otherwise entitled to recover damages from the em-
ployer based on the injury, disability, or death of the 
master or crew member, shall be exclusive and in 
lieu of all other liability.’’. 
(c) MINIMUM REQUIREMENTS.—All vessels, whether 
documented in the United States or not, operating in the 
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coastwise trade of the United States shall be subject to 
minimum international labor standards for seafarers 
under international agreements in force for the United 
States, as determined by the Secretary of Transportation 
on the advice of the Secretaries of Labor and Defense. 
SEC. 5. REGULATIONS REGARDING VESSELS. 
(a) APPLICABLE MINIMUM REQUIREMENTS.—Except 
as provided in subsection (b), the minimum requirements 
for vessels engaging in the transportation of cargo or mer-
chandise in the United States coastwise trade shall be the 
recognized international standards in force for the United 
States (as determined by the Secretary of the department 
in which the Coast Guard is operating, in consultation 
with any other official of the Federal Government that the 
Secretary determines to be appropriate). 
(b) CONSISTENCY
IN
APPLICATION
OF
STAND-
ARDS.—In any case in which any minimum requirement 
for vessels referred to in subsection (a) establishes a lower 
standard than a minimum that is applicable to vessels that 
are documented in a foreign country and that are admit-
ted to engage in the transportation of cargo and merchan-
dise in the United States coastwise trade, the standard 
applicable to such vessels that are documented in a foreign 
country shall be the standard to be applied to United 
States documented vessels. 
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SEC. 6. ENVIRONMENTAL STANDARDS. 
All vessels, whether documented under the laws of the 
United States or not, engaging in the United States coast-
wise trade shall comply with all applicable United States 
and international environmental standards in force for the 
United States. 
SEC. 7. REQUIREMENTS FOR CERTAIN NONCITIZENS IR-
REGULARLY ENGAGING IN DOMESTIC COAST-
WISE TRADE. 
(a) IN GENERAL.—Each person or entity that is not 
a citizen of the United States, as defined in section 104 
of title 46, United States Code, that owns or operates ves-
sels that irregularly engage in the United States domestic 
coastwise trade shall— 
(1) name an agent upon whom process may be 
served; 
(2) abide by all applicable laws of the United 
States, including applicable environmental and tax 
laws; and 
(3) post evidence of documentation and en-
dorsements aboard such vessel indicating the owner 
or owners of such vessel, including any person con-
trolling vessels and the number of port calls and 
coastwise trips made during that calendar year. 
(b) PERSONS TREATED AS SINGLE EMPLOYER.—For 
purposes of paragraph (3) of subsection (a), all persons 
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treated as a single employer under subsection (a) or (b) 
of section 52 of the Internal Revenue Code of 1986 shall 
be treated as 1 person. 
Æ 
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