192 
charges resulting from the requirements of sections 55314(a) and 55316(a) 
and (b) of this title. On the termination of this subchapter under this sec-
tion— 
‘‘(1) this subchapter does not exempt export activities from, or subject 
export activities to, the cargo preference laws; and 
‘‘(2) the 50-percent requirement in section 55305 of this title remains 
in effect. 
‘‘§ 55318. Effect on other law 
‘‘This subchapter does not affect chapter 5 of title 5. 
‘‘SUBCHAPTER III—AMERICAN GREAT LAKES VESSELS 
‘‘§ 55331. Definitions 
‘‘In this subchapter: 
‘‘(1) AMERICAN GREAT LAKES VESSEL.—The term ‘American Great 
Lakes vessel’ means a vessel so designated under section 55332 of this 
title, but only during the period the designation is in effect. 
‘‘(2) GREAT LAKES.—The term ‘Great Lakes’ means Lake Superior, 
Lake Michigan, Lake Huron, Lake Erie, Lake Ontario, the Saint Law-
rence River west of Saint Regis, New York, and their connecting and 
tributary waters. 
‘‘(3) GREAT LAKES SHIPPING SEASON.—The term ‘Great Lakes ship-
ping season’ means the period each year during which the Saint Law-
rence Seaway is open for navigation by vessels, as declared by the Saint 
Lawrence Seaway Development Corporation. 
‘‘§ 55332. Designating American Great Lakes vessels 
‘‘(a) DESIGNATIONS.—The Secretary of Transportation shall designate a 
vessel as an American Great Lakes vessel if— 
‘‘(1) an application for designation is submitted to the Secretary 
under regulations prescribed by the Secretary; 
‘‘(2) the vessel is documented under the laws of the United States; 
‘‘(3) the vessel, on the effective date of the designation, is— 
‘‘(A) at least 1, but not more than 6, years old; or 
‘‘(B) at least 1, but not more than 11, years old if the Secretary 
finds that suitable vessels are not available to provide the type of 
service for which the vessel will be used after the designation; 
‘‘(4) the vessel has not previously been designated as an American 
Great Lakes vessel; and 
‘‘(5) the owner makes an agreement as provided under subsection (b). 
‘‘(b) AGREEMENTS.—A vessel may be designated as an American Great 
Lakes vessel only if the person that will be the owner of the vessel at the time 
of the designation makes an agreement with the Secretary providing that if 
the Secretary determines that the vessel is necessary to the defense of the
193 
United States, the United States Government will have an exclusive right, 
during the 120-day period following the date of a revocation of the designa-
tion under section 55335 of this title, to purchase the vessel for a price equal 
to the greater of— 
‘‘(1) the approximate world market value of the vessel; or 
‘‘(2) the cost of the vessel to the owner less a reasonable amount for 
depreciation. 
‘‘(c) CERTAIN FOREIGN DOCUMENTATION AND SALE NOT PROHIBITED.— 
Notwithstanding any other law, if the Government does not exercise its right 
of purchase under an agreement under subsection (b), the owner of the vessel 
is not prohibited from— 
‘‘(1) documenting the vessel under the laws of a foreign country; or 
‘‘(2) selling the vessel to a person not a citizen of the United States. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe regulations establishing 
requirements for submitting applications under this section. 
‘‘§ 55333. Exemption from restriction on transporting certain 
cargo 
‘‘The 3-year documentation requirement of section 55305(a) of this title 
does not apply to a vessel designated as an American Great Lakes vessel dur-
ing the period of its designation. 
‘‘§ 55334. Restrictions on operations 
‘‘(a) PROHIBITIONS.—Except as provided in subsection (b), an American 
Great Lakes vessel may not be used to— 
‘‘(1) engage in trade— 
‘‘(A) from a port in the United States that is not located on the 
Great Lakes; or 
‘‘(B) between ports in the United States; 
‘‘(2) transport bulk cargo (as defined in section 40102 of this title) 
that is subject to section 55305 or 55314 of this title or section 2631 of 
title 10; or 
‘‘(3) provide a service (except ocean freight service) as— 
‘‘(A) a contract carrier; or 
‘‘(B) a common carrier on a fixed advertised schedule offering fre-
quent sailings at regular intervals in the foreign trade of the United 
States. 
‘‘(b) OFF-SEASON EXCEPTION.—An American Great Lakes vessel may be 
used for not more than 90 days during any 12-month period to engage in 
trade prohibited by subsection (a)(1)(A), except during the Great Lakes ship-
ping season.
194 
‘‘§ 55335. Revocations and terminations of designations 
‘‘(a) REVOCATIONS.—After notice and an opportunity for a hearing, the 
Secretary of Transportation may revoke a designation of a vessel as an Amer-
ican Great Lakes vessel if the Secretary finds that— 
‘‘(1) the vessel does not meet a requirement for the designation; 
‘‘(2) the vessel has been operated in violation of this subchapter; or 
‘‘(3) the owner or operator of the vessel has violated an agreement 
made under section 55332(b) of this title. 
‘‘(b) TERMINATIONS.—On petition and a showing of good cause by the 
owner of a vessel, the Secretary may terminate the designation of a vessel as 
an American Great Lakes vessel. The Secretary may impose conditions in a 
termination order to prevent significant adverse effects on other operators of 
vessels of the United States. 
‘‘§ 55336. Civil penalty 
‘‘After notice and an opportunity for a hearing, the Secretary of Transpor-
tation may impose a civil penalty of not more than $1,000,000 on the owner 
of an American Great Lakes vessel for any act for which the designation may 
be revoked under section 55335 of this title. 
‘‘CHAPTER 555—MISCELLANEOUS 
‘‘Sec. 
‘‘55501.
Mobile trade fairs. 
‘‘§ 55501. Mobile trade fairs 
‘‘(a) IN GENERAL.—The Secretary of Commerce shall encourage and pro-
mote the development and use of mobile trade fairs designed to show and sell 
the products of United States business and agriculture at foreign ports and 
at other commercial centers throughout the world where the operators of the 
fairs use, insofar as practicable, vessels and aircraft of the United States in 
transporting their exhibits. 
‘‘(b) TECHNICAL AND FINANCIAL ASSISTANCE.—When the Secretary deter-
mines that a mobile trade fair provides an economical and effective means 
of promoting export sales, the Secretary may provide to the operator of the 
fair— 
‘‘(1) technical assistance and support; and 
‘‘(2) financial assistance to defray certain expenses incurred outside 
the United States, except the cost of transportation on foreign vessels and 
aircraft. 
‘‘(c) USE OF FOREIGN CURRENCIES.—To carry out this section, the Presi-
dent may use, in addition to amounts appropriated to carry out trade pro-
motion activities, foreign currencies owned by or owed to the United States 
Government.
195 
‘‘PART E—CONTROL OF MERCHANT MARINE CAPABILITIES 
‘‘CHAPTER 561—RESTRICTIONS ON TRANSFERS 
‘‘Sec. 
‘‘56101.
Approval required to transfer vessel to noncitizen. 
‘‘56102.
Additional controls during war or national emergency. 
‘‘56103.
Conditional approvals. 
‘‘56104.
Penalty for false statements. 
‘‘56105.
Forfeiture procedure. 
‘‘§ 56101. Approval required to transfer vessel to noncitizen 
‘‘(a) RESTRICTIONS.— 
‘‘(1) IN GENERAL.—Except as otherwise provided in this section, sec-
tion 12119 of this title, or section 611 of the Merchant Marine Act, 1936, 
a person may not, without the approval of the Secretary of Transpor-
tation— 
‘‘(A) sell, lease, charter, deliver, or in any other manner transfer, 
or agree to sell, lease, charter, deliver, or in any other manner 
transfer, to a person not a citizen of the United States, an interest 
in or control of— 
‘‘(i) a documented vessel owned by a citizen of the United 
States; or 
‘‘(ii) a vessel last documented under the laws of the United 
States; or 
‘‘(B) place under foreign registry, or operate under the authority 
of a foreign country, a documented vessel or a vessel last docu-
mented under the laws of the United States. 
‘‘(2) EXCEPTIONS.—Paragraph (1)(A) does not apply to a vessel that 
has been operated only for pleasure or only as a fishing vessel, fish proc-
essing vessel, or fish tender vessel (as defined in section 2101 of this 
title). 
‘‘(b) APPROVAL BEFORE DOCUMENTATION.—To promote financing with re-
spect to a vessel to be documented under chapter 121 of this title, the Sec-
retary may grant approval under subsection (a) before the vessel is docu-
mented. 
‘‘(c) EXCEPTIONS.—Notwithstanding any other provision of this subtitle, 
the Merchant Marine Act, 1936, or any contract with the Secretary made 
under this subtitle or that Act, a person may place a vessel under foreign reg-
istry without the approval of the Secretary if— 
‘‘(1)(A) the Secretary, in conjunction with the Secretary of Defense, 
determines that at least one replacement vessel of equal or greater mili-
tary capability and of a capacity that is equivalent or greater, as meas-
ured by deadweight tons, gross tons, or container equivalent units, as ap-
propriate, is documented under chapter 121 of this title by the owner 
of the vessel placed under foreign registry; and
196 
‘‘(B) the replacement vessel is not more than 10 years old on the date 
of that documentation; or 
‘‘(2) an operating agreement covering the vessel under chapter 531 of 
this title has expired. 
‘‘(d) STATUS OF PROHIBITED TRANSACTION.—A charter, sale, or transfer 
of a vessel, or of an interest in or control of a vessel, in violation of this sec-
tion is void. 
‘‘(e) PENALTIES.— 
‘‘(1) CRIMINAL PENALTY.—A person that knowingly sells, charters, or 
transfers a vessel, or an interest in or control of a vessel, in violation 
of this section shall be fined under title 18, imprisoned for not more than 
5 years, or both. 
‘‘(2) CIVIL PENALTY.—A person that sells, charters, or transfers a ves-
sel, or an interest in or control of a vessel, in violation of this section 
is liable to the United States Government for a civil penalty of not more 
than $10,000 for each violation. 
‘‘(3) FORFEITURE.—A documented vessel may be seized by and for-
feited to the Government if, in violation of this section, a person— 
‘‘(A) knowingly sells, charters, or transfers the vessel or an inter-
est in or control of the vessel; or 
‘‘(B) places the vessel under foreign registry or operates the vessel 
under the authority of a foreign country. 
‘‘§ 56102. Additional controls during war or national emer-
gency 
‘‘(a) IN GENERAL.—During war, or a national emergency declared by 
Presidential proclamation, a person may not, without the approval of the Sec-
retary of Transportation— 
‘‘(1) place under foreign registry a vessel owned in whole or in part 
by a citizen of the United States or a corporation incorporated under 
the laws of the United States or of a State; 
‘‘(2) sell, mortgage, lease, charter, deliver, or in any other manner 
transfer, or agree to sell, mortgage, lease, charter, deliver, or in any other 
manner transfer, to a person not a citizen of the United States— 
‘‘(A) a vessel owned as described in paragraph (1), or an interest 
therein; 
‘‘(B) a vessel documented under the laws of the United States, or 
an interest therein; or 
‘‘(C) a facility for building or repairing vessels, or an interest 
therein; 
‘‘(3) issue, assign, or transfer to a person not a citizen of the United 
States an instrument of indebtedness secured by a mortgage of a vessel
197 
to a trustee, by an assignment of an owner’s interest in a vessel under 
construction to a trustee, or by a mortgage of a facility for building or 
repairing vessels to a trustee, unless the trustee or a substitute trustee 
is approved by the Secretary under subsection (b); 
‘‘(4) enter into an agreement or understanding to construct a vessel 
in the United States for, or to be delivered to, a person not a citizen 
of the United States without expressly stipulating that construction will 
not begin until after the war or national emergency has ended; 
‘‘(5) enter into an agreement or understanding whereby there is vested 
in, or for the benefit of, a person not a citizen of the United States the 
controlling interest in a corporation that is incorporated under the laws 
of the United States or a State and that owns a vessel or facility for 
building or repairing vessels; or 
‘‘(6) cause or procure a vessel, constructed in whole or in part in the 
United States and never cleared for a foreign port, to depart from a port 
of the United States before it has been documented under the laws of the 
United States. 
‘‘(b) TRUSTEES.— 
‘‘(1) APPROVAL.—The Secretary shall approve a trustee or substitute 
trustee under subsection (a)(3) if and only if the trustee is a bank or 
trust company that— 
‘‘(A) is organized as a corporation, and is doing business, under 
the laws of the United States or a State; 
‘‘(B) is authorized under those laws to exercise corporate trust 
powers; 
‘‘(C) is a citizen of the United States; 
‘‘(D) is subject to supervision or examination by Federal or State 
authority; and 
‘‘(E) has a combined capital and surplus (as set forth in its most 
recent published report of condition) of at least $3,000,000. 
‘‘(2) DISAPPROVAL.—If a trustee or substitute trustee ceases to meet 
the conditions in paragraph (1), the Secretary shall disapprove the trust-
ee or substitute trustee. After the disapproval, the restrictions on transfer 
or assignment without the Secretary’s approval in subsection (a)(3) 
apply. 
‘‘(3) OPERATION OF VESSEL.—During a period when subsection (a) 
applies, a trustee referred to in subsection (a)(3), even though approved 
as a trustee by the Secretary, may not operate the vessel under the mort-
gage or assignment without the Secretary’s approval. 
‘‘(c) STATUS OF PROHIBITED TRANSACTION.—A transaction in violation of 
this section is void.
198 
‘‘(d) RECOVERY OF CONSIDERATION.— 
‘‘(1) IN GENERAL.—A person that deposited or paid consideration in 
connection with a transaction prohibited by this section may recover the 
consideration after tender of the vessel, facility, stock, or other security, 
or interest therein, to the person entitled to it, or the forfeiture thereof 
to the United States Government. 
‘‘(2) EXCEPTION.—Paragraph (1) does not apply if the person in 
whose interest the consideration was deposited, or to whom it was paid, 
entered into the transaction in the belief that the person depositing or 
paying the consideration was a citizen of the United States. 
‘‘(e) PENALTIES.— 
‘‘(1) CRIMINAL PENALTY.—A person that violates, or attempts or con-
spires to violate, this section shall be fined under title 18, imprisoned 
for not more than 5 years, or both. 
‘‘(2) FORFEITURE.—The following shall be forfeited to the Government: 
‘‘(A) A vessel, a facility for building or repairing vessels, or an 
interest in a vessel or such a facility, that is sold, mortgaged, leased, 
chartered, delivered, transferred, or documented, or agreed to be sold, 
mortgaged, leased, chartered, delivered, transferred, or documented, 
in violation of this section. 
‘‘(B) Stock and other securities sold or transferred, or agreed to 
be sold or transferred, in violation of this section. 
‘‘(C) A vessel departing in violation of subsection (a)(6). 
‘‘§ 56103. Conditional approvals 
‘‘(a) IN GENERAL.—In approving an act or transaction under section 
56101 or 56102 of this title, the Secretary of Transportation may do so abso-
lutely or upon conditions the Secretary considers advisable. The Secretary 
shall state the conditions in the notice of approval. 
‘‘(b) VIOLATIONS.—A violation of a condition of approval is subject to the 
same penalties as a violation resulting from an act done without the required 
approval. The violation occurs at the time the condition is violated. 
‘‘§ 56104. Penalty for false statements 
‘‘A person that knowingly makes a false statement of a material fact to the 
Secretary of Transportation or another officer, employee, or agent of the De-
partment of Transportation, to obtain the Secretary’s approval under section 
56101 or 56102 of this title, shall be fined under title 18, imprisoned for not 
more than 5 years, or both. 
‘‘§ 56105. Forfeiture procedure 
‘‘(a) IN GENERAL.—A forfeiture under this chapter may be enforced in the 
same way as a forfeiture under the laws on the collection of duties. However, 
such a forfeiture may be remitted without seizure of the vessel.
199 
‘‘(b) PRIOR CONVICTIONS.—In a proceeding under this chapter to enforce 
a forfeiture, a prior criminal conviction of a person for a violation of this 
chapter with respect to the subject matter of the forfeiture is prima facie evi-
dence of the violation against the person convicted. 
‘‘CHAPTER 563—EMERGENCY ACQUISITION OF VESSELS 
‘‘Sec. 
‘‘56301.
General authority. 
‘‘56302.
Charter terms. 
‘‘56303.
Compensation. 
‘‘56304.
Disputed compensation. 
‘‘56305.
Vessel encumbrances. 
‘‘56306.
Use and transfer of vessels. 
‘‘56307.
Return of vessels. 
‘‘§ 56301. General authority 
‘‘During a national emergency declared by Presidential proclamation, or 
a period for which the President has proclaimed that the security of the na-
tional defense makes it advisable, the Secretary of Transportation may req-
uisition or purchase, or requisition or charter the use of, a vessel owned by 
citizens of the United States, a documented vessel, or a vessel under construc-
tion in the United States. 
‘‘§ 56302. Charter terms 
‘‘(a) IN GENERAL.—If a vessel is requisitioned for use but not ownership 
under this chapter, the Secretary of Transportation, at the time of requisition 
or as soon thereafter as the situation allows, shall offer the person entitled 
to possession of the vessel a charter containing— 
‘‘(1) the terms the Secretary believes should govern the relationship be-
tween the United States Government and the person; and 
‘‘(2) the rate of hire the Secretary considers just compensation for the 
use of the vessel and the services required under the charter. 
‘‘(b) REFUSAL TO ACCEPT.—If the person does not accept the charter and 
rate of hire, the parties shall proceed as provided in section 56304 of this title. 
‘‘§ 56303. Compensation 
‘‘(a) IN GENERAL.—As soon as practicable, the Secretary of Transportation 
shall determine and pay just compensation for a vessel requisitioned under 
this chapter. 
‘‘(b) FACTORS NOT AFFECTING VALUE.—The value of a vessel may not be 
considered enhanced by the circumstances requiring its requisition. Con-
sequential damages arising from the requisition may not be paid. 
‘‘(c) EFFECT OF CONSTRUCTION-DIFFERENTIAL SUBSIDY.— 
‘‘(1) IF PAID.—If a construction-differential subsidy has been paid for 
the vessel, the value of the vessel at the time of requisition shall be deter-
mined under section 802 of the Merchant Marine Act, 1936.
200 
‘‘(2) IF NOT PAID.—If a construction-differential subsidy has not been 
paid for the vessel, the value of any national defense features previously 
paid for by the United States Government shall be excluded. 
‘‘(d) LOSS OR DAMAGE DURING CHARTER.—If a vessel is lost or damaged 
by a risk assumed by the Government under the charter, but a valuation for 
the vessel or a means of compensation has not been agreed to, the Secretary 
shall pay just compensation for the loss or damage, to the extent the person 
is not reimbursed through insurance. 
‘‘§ 56304. Disputed compensation 
‘‘If the person entitled to compensation disputes the amount of just com-
pensation determined by the Secretary of Transportation under this chapter, 
the Secretary shall pay the person, as a tentative advance, 75 percent of the 
amount determined. The person may bring a civil action against the United 
States to recover just compensation. If the tentative advance paid under this 
section is greater than the amount of the court’s judgment, the person shall 
refund the difference. 
‘‘§ 56305. Vessel encumbrances 
‘‘(a) IN GENERAL.—The existence of an encumbrance on a vessel does not 
prevent the requisition of the vessel under this chapter. 
‘‘(b) DEPOSIT IN TREASURY.— 
‘‘(1) IN GENERAL.—If an encumbrance exists, the Secretary of Trans-
portation may deposit part of the compensation or advance of compensa-
tion to be paid under this chapter (but not more than the total amount 
of all encumbrances) in a fund in the Treasury. The Secretary shall pub-
lish notice of the creation of the fund in the Federal Register. 
‘‘(2) AVAILABILITY OF AMOUNTS DEPOSITED.—Amounts deposited in 
the fund shall be available to pay the compensation or any of the encum-
brances (including encumbrances stipulated to in a court of the United 
States or a State) existing at the time the vessel was requisitioned. 
‘‘(c) CIVIL ACTION.— 
‘‘(1) IN GENERAL.—Within 6 months after publication of notice under 
subsection (b), the holder of an encumbrance may bring a civil action 
in admiralty, according to the principles of libels in rem, against the 
fund. 
‘‘(2) VENUE.—The action must be brought in the district court of the 
United States— 
‘‘(A) from whose custody the vessel was or may be requisitioned; 
or 
‘‘(B) in whose district the vessel was located when it was requi-
sitioned.