H. R. 1442—10
‘‘§ 12106. Surrender of title and number 
‘‘(a) IN GENERAL.—A documented vessel may not be titled by 
a State or required to display numbers under chapter 123 of this 
title, and any certificate of title issued by a State for a documented 
vessel shall be surrendered as provided by regulations prescribed 
by the Secretary. 
‘‘(b) VESSELS COVERED BY PREFERRED MORTGAGE.—The Sec-
retary may approve the surrender under subsection (a) of a certifi-
cate of title for a vessel covered by a preferred mortgage under 
section 31322(d) of this title only if the mortgagee consents. 
‘‘§ 12107. Wrecked vessels 
‘‘(a) REQUIREMENTS.—A vessel is a wrecked vessel under this 
chapter if it—
‘‘(1) was wrecked on a coast of the United States or adjacent 
waters; and 
‘‘(2) has undergone repairs in a shipyard in the United 
States equal to at least 3 times the appraised salvage value 
of the vessel. 
‘‘(b) APPRAISALS.—The Secretary may appoint a board of three 
appraisers to determine whether a vessel satisfies subsection (a)(2). 
The costs of the appraisal shall be paid by the owner of the vessel. 
‘‘SUBCHAPTER II—ENDORSEMENTS AND SPECIAL 
DOCUMENTATION 
‘‘§ 12111. Registry endorsement 
‘‘(a) REQUIREMENTS.—A registry endorsement may be issued 
for a vessel that satisfies the requirements of section 12103 of 
this title. 
‘‘(b) AUTHORIZED ACTIVITY.—A vessel for which a registry 
endorsement is issued may engage in foreign trade or trade with 
Guam, American Samoa, Wake, Midway, or Kingman Reef. 
‘‘(c) CERTAIN VESSELS OWNED BY TRUSTS.—
‘‘(1) NONAPPLICATION OF BENEFICIARY CITIZENSHIP REQUIRE-
MENT.—For the issuance of a certificate of documentation with 
only a registry endorsement, the beneficiaries of a trust are 
not required to be citizens of the United States if the trust 
qualifies under paragraph (2) and the vessel is subject to a 
charter to a citizen of the United States. 
‘‘(2) REQUIREMENTS FOR TRUST TO QUALIFY.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), a trust 
qualifies under this paragraph with respect to a vessel 
only if—
‘‘(i) each trustee is a citizen of the United States; 
and 
‘‘(ii) the application for documentation of the vessel 
includes the affidavit of each trustee stating that the 
trustee is not aware of any reason involving a bene-
ficiary of the trust that is not a citizen of the United 
States, or involving any other person that is not a 
citizen of the United States, as a result of which the 
beneficiary or other person would hold more than 25 
percent of the aggregate power to influence or limit 
the exercise of the authority of the trustee with respect 
to matters involving any ownership or operation of
H. R. 1442—11
the vessel that may adversely affect the interests of 
the United States. 
‘‘(B) AUTHORITY OF NON-CITIZENS.—If any person that 
is not a citizen of the United States has authority to 
direct or participate in directing a trustee for a trust in 
matters involving any ownership or operation of the vessel 
that may adversely affect the interests of the United States 
or in removing a trustee for a trust without cause, either 
directly or indirectly through the control of another person, 
the trust is not qualified under this paragraph unless the 
trust instrument provides that persons who are not citizens 
of the United States may not hold more than 25 percent 
of the aggregate authority to so direct or remove a trustee. 
‘‘(C) OWNERSHIP BY NON-CITIZENS.—Subparagraphs (A) 
and (B) do not prohibit a person that is not a citizen 
of the United States from holding more than 25 percent 
of the beneficial interest in a trust. 
‘‘(3) CITIZENSHIP OF PERSON CHARTERING VESSEL.—If a per-
son chartering a vessel from a trust that qualifies under para-
graph (2) is a citizen of the United States under section 50501 
of this title, the vessel is deemed to be owned by a citizen 
of the United States for purposes of that section and related 
laws, except chapter 531 of this title. 
‘‘§ 12112. Coastwise endorsement 
‘‘(a) REQUIREMENTS.—A coastwise endorsement may be issued 
for a vessel that—
‘‘(1) satisfies the requirements of section 12103 of this 
title; 
‘‘(2)(A) was built in the United States; or 
‘‘(B) if not built in the United States—
‘‘(i) was captured in war by citizens of the United 
States and lawfully condemned as prize; 
‘‘(ii) was adjudged to be forfeited for a breach of the 
laws of the United States; or 
‘‘(iii) qualifies as a wrecked vessel under section 12107 
of this title; and 
‘‘(3) otherwise qualifies under the laws of the United States 
to engage in the coastwise trade. 
‘‘(b) AUTHORIZED ACTIVITY.—Subject to the laws of the United 
States regulating the coastwise trade, a vessel for which a coastwise 
endorsement is issued may engage in the coastwise trade. 
‘‘§ 12113. Fishery endorsement 
‘‘(a) REQUIREMENTS.—A fishery endorsement may be issued 
for a vessel that—
‘‘(1) satisfies the requirements of section 12103 of this 
title and, if owned by an entity, the entity satisfies the owner-
ship requirements in subsection (c); 
‘‘(2) was built in the United States; 
‘‘(3) if rebuilt, was rebuilt in the United States; 
‘‘(4) was not forfeited to the United States Government 
after July 1, 2001, for a breach of the laws of the United 
States; and 
‘‘(5) otherwise qualifies under the laws of the United States 
to engage in the fisheries. 
‘‘(b) AUTHORIZED ACTIVITY.—
H. R. 1442—12
‘‘(1) IN GENERAL.—Subject to the laws of the United States 
regulating the fisheries, a vessel for which a fishery endorse-
ment is issued may engage in the fisheries. 
‘‘(2) USE BY PROHIBITED PERSONS.—A fishery endorsement 
is invalid immediately if the vessel for which it is issued is 
used as a fishing vessel while it is chartered or leased to 
an individual who is not a citizen of the United States or 
to an entity that is not eligible to own a vessel with a fishery 
endorsement. 
‘‘(c) OWNERSHIP REQUIREMENTS FOR ENTITIES.—
‘‘(1) IN GENERAL.—A vessel owned by an entity is eligible 
for a fishery endorsement only if at least 75 percent of the 
interest in the entity, at each tier of ownership and in the 
aggregate, is owned and controlled by citizens of the United 
States. 
‘‘(2) DETERMINING 75 PERCENT INTEREST.—In determining 
whether at least 75 percent of the interest in the entity is 
owned and controlled by citizens of the United States under 
paragraph (1), the Secretary shall apply section 50501(d) of 
this title, except that for this purpose the terms ‘control’ or 
‘controlled’—
‘‘(A) include the right to—
‘‘(i) direct the business of the entity; 
‘‘(ii) limit the actions of or replace the chief execu-
tive officer, a majority of the board of directors, any 
general partner, or any person serving in a manage-
ment capacity of the entity; or 
‘‘(iii) direct the transfer, operation, or manning 
of a vessel with a fishery endorsement; but 
‘‘(B) do not include the right to simply participate 
in the activities under subparagraph (A), or the exercise 
of rights under loan or mortgage covenants by a mortgagee 
eligible to be a preferred mortgagee under section 31322(a) 
of this title, except that a mortgagee not eligible to own 
a vessel with a fishery endorsement may only operate 
such a vessel to the extent necessary for the immediate 
safety of the vessel or for repairs, drydocking, or berthing 
changes. 
‘‘(3) EXCEPTIONS.—This subsection does not apply to a 
vessel when it is engaged in the fisheries in the exclusive 
economic zone under the authority of the Western Pacific 
Fishery 
Management 
Council 
established 
under 
section 
302(a)(1)(H) of the Magnuson-Stevens Fishery Conservation 
and Management Act (16 U.S.C. 1852(a)(1)(H)) or to a purse 
seine vessel when it is engaged in tuna fishing in the Pacific 
Ocean outside the exclusive economic zone or pursuant to the 
South Pacific Regional Fisheries Treaty, provided that the 
owner of the vessel continues to comply with the eligibility 
requirements for a fishery endorsement under the Federal law 
that was in effect on October 1, 1998. A fishery endorsement 
issued pursuant to this paragraph is valid for engaging only 
in the activities described in this paragraph. 
‘‘(d) REQUIREMENTS BASED ON LENGTH, TONNAGE, OR HORSE-
POWER.—
‘‘(1) APPLICATION.—This subsection applies to a vessel 
that—
‘‘(A) is greater than 165 feet in registered length;
H. R. 1442—13
‘‘(B) is more than 750 gross registered tons as measured 
under chapter 145 of this title or 1,900 gross registered 
tons as measured under chapter 143 of this title; or 
‘‘(C) has an engine or engines capable of producing 
a total of more than 3,000 shaft horsepower. 
‘‘(2) REQUIREMENTS.—A vessel subject to this subsection 
is not eligible for a fishery endorsement unless—
‘‘(A)(i) a certificate of documentation was issued for 
the vessel and endorsed with a fishery endorsement that 
was effective on September 25, 1997; 
‘‘(ii) the vessel is not placed under foreign registry 
after October 21, 1998; and 
‘‘(iii) if the fishery endorsement is invalidated after 
October 21, 1998, application is made for a new fishery 
endorsement within 15 business days of the invalidation; 
or 
‘‘(B) the owner of the vessel demonstrates to the Sec-
retary that the regional fishery management council of 
jurisdiction established under section 302(a)(1) of the 
Magnuson-Stevens Fishery Conservation and Management 
Act (16 U.S.C. 1852(a)(1)) has recommended after October 
21, 1998, and the Secretary of Commerce has approved, 
conservation and management measures in accordance 
with the American Fisheries Act (Public Law 105–277, 
div. C, title II) (16 U.S.C. 1851 note) to allow the vessel 
to be used in fisheries under the council’s authority. 
‘‘(e) VESSELS MEASURING 100 FEET OR GREATER.—
‘‘(1) IN
GENERAL.—The Administrator of the Maritime 
Administration shall administer subsections (c) and (d) with 
respect to vessels 100 feet or greater in registered length. 
The owner of each such vessel shall file a statement of citizen-
ship setting forth all relevant facts regarding vessel ownership 
and control with the Administrator on an annual basis to 
demonstrate compliance with those provisions. 
‘‘(2) REGULATIONS.—Regulations to implement this sub-
section shall conform to the extent practicable with the regula-
tions establishing the form of citizenship affidavit set forth 
in part 355 of title 46, Code of Federal Regulations, as in 
effect on September 25, 1997, except that the form of the 
statement shall be written in a manner to allow the owner 
of the vessel to satisfy any annual renewal requirements for 
a certificate of documentation for the vessel and to comply 
with this subsection and subsections (c) and (d), and shall 
not be required to be notarized. 
‘‘(3) TRANSFER OF OWNERSHIP.—Transfers of ownership and 
control of vessels subject to subsection (c) or (d), which are 
100 feet or greater in registered length, shall be rigorously 
scrutinized for violations of those provisions, with particular 
attention given to—
‘‘(A) leases, charters, mortgages, financing, and similar 
arrangements; 
‘‘(B) the control of persons not eligible to own a vessel 
with a fishery endorsement under subsection (c) or (d), 
over the management, sales, financing, or other operations 
of an entity; and
H. R. 1442—14
‘‘(C) contracts involving the purchase over extended 
periods of time of all, or substantially all, of the living 
marine resources harvested by a fishing vessel. 
‘‘(f) VESSELS MEASURING LESS THAN 100 FEET.—The Secretary 
shall establish reasonable and necessary requirements to dem-
onstrate compliance with subsections (c) and (d), with respect to 
vessels measuring less than 100 feet in registered length, and 
shall seek to minimize the administrative burden on individuals 
who own and operate those vessels. 
‘‘(g) VESSELS PURCHASED THROUGH FISHING CAPACITY REDUC-
TION PROGRAM.—A vessel purchased by the Secretary of Commerce 
through a fishing capacity reduction program under the Magnuson-
Stevens Fishery Conservation Management Act (16 U.S.C. 1801 
et seq.) or section 308 of the Interjurisdictional Fisheries Act of 
1986 (16 U.S.C. 4107) is not eligible for a fishery endorsement, 
and any fishery endorsement issued for that vessel is invalid. 
‘‘(h) REVOCATION
OF
ENDORSEMENTS.—The Secretary shall 
revoke the fishery endorsement of any vessel subject to subsection 
(c) or (d) whose owner does not comply with those provisions. 
‘‘(i) REGULATIONS.—Regulations to implement subsections (c) 
and (d) and sections 12151(c) and 31322(b) of this title shall prohibit 
impermissible transfers of ownership or control, specify any trans-
actions that require prior approval of an implementing agency, 
identify transactions that do not require prior agency approval, 
and to the extent practicable, minimize disruptions to the commer-
cial fishing industry, to the traditional financing arrangements 
of that industry, and to the opportunity to form fishery cooperatives. 
‘‘§ 12114. Recreational endorsement 
‘‘(a) REQUIREMENTS.—A recreational endorsement may be 
issued for a vessel that satisfies the requirements of section 12103 
of this title. 
‘‘(b) AUTHORIZED ACTIVITY.—A vessel operating under a rec-
reational endorsement may be operated only for pleasure. 
‘‘(c) APPLICATION OF CUSTOMS LAWS.—A vessel for which a 
recreational endorsement is issued may proceed between a port 
of the United States and a port of a foreign country without entering 
or clearing with the Secretary of Homeland Security. However, 
a recreational vessel is subject to the requirements for reporting 
arrivals under section 433 of the Tariff Act of 1930 (19 U.S.C. 
1433), and individuals on the vessel are subject to applicable cus-
toms regulations. 
‘‘§ 12115. Temporary endorsement for vessels procured out-
side the United States 
‘‘(a) GENERAL AUTHORITY.—The Secretary and the Secretary 
of State, acting jointly, may provide for the issuance of a certificate 
of documentation with an appropriate endorsement for a vessel 
procured outside the United States and meeting the ownership 
requirements of section 12103 of this title. 
‘‘(b) AUTHORIZED ACTIVITY.—Subject to limitations the Sec-
retary may prescribe, a vessel documented under this section may 
proceed to the United States and engage en route in foreign trade 
or trade with Guam, American Samoa, Wake, Midway, or Kingman 
Reef. 
‘‘(c) APPLICATION OF UNITED STATES JURISDICTION AND LAWS.—
A vessel documented under this section is subject to the jurisdiction
H. R. 1442—15
and laws of the United States. However, if the Secretary considers 
it to be in the public interest, the Secretary may suspend for 
a period of not more than 6 months the application of a vessel 
inspection law carried out by the Secretary or regulations prescribed 
under that law. 
‘‘(d) SURRENDER OF CERTIFICATE.—On the vessel’s arrival in 
the United States, the certificate of documentation shall be surren-
dered as provided by regulations prescribed by the Secretary. 
‘‘§ 12116. Limited endorsements for Guam, American Samoa, 
and Northern Mariana Islands 
‘‘(a) ENDORSEMENTS.—A vessel satisfying the requirements of 
subsection (b) may be issued—
‘‘(1) a coastwise endorsement to engage in the coastwise 
trade of fisheries products between places in Guam, American 
Samoa, and the Northern Mariana Islands; or 
‘‘(2) a fishery endorsement to engage in fishing in the 
territorial sea and fishery conservation zone adjacent to Guam, 
American Samoa, and the Northern Mariana Islands. 
‘‘(b) REQUIREMENTS.—An endorsement may be issued under 
subsection (a) for a vessel that—
‘‘(1) satisfies the requirements of section 12103 of this 
title; 
‘‘(2) was not built in the United States, except that for 
an endorsement under subsection (a)(2), the vessel must not 
have been built or rebuilt in the United States; 
‘‘(3) is less than 200 gross tons as measured under section 
14502 of this title, or an alternate tonnage as measured under 
section 14302 of this title as prescribed by the Secretary under 
section 14104 of this title; and 
‘‘(4) otherwise qualifies under the laws of the United States 
to engage in the coastwise trade or the fisheries, as the case 
may be. 
‘‘§ 12117. Oil spill response vessels 
‘‘(a) REQUIREMENTS.—A coastwise endorsement may be issued 
for a vessel that—
‘‘(1) satisfies the requirements for a coastwise endorsement, 
except for the ownership requirement otherwise applicable 
without regard to this section; 
‘‘(2) is owned by a not-for-profit oil spill response coopera-
tive or by members of such a cooperative that dedicate the 
vessel to use by the cooperative; 
‘‘(3) is at least 50 percent owned by individuals or entities 
described in section 12103(b) of this title; and 
‘‘(4) is to be used only for—
‘‘(i) deploying equipment, supplies, and personnel to 
recover, contain, or transport oil discharged into the navi-
gable waters of the United States or the exclusive economic 
zone; or 
‘‘(ii) training exercises to prepare to respond to such 
a discharge. 
‘‘(b) DEEMED OWNED BY CITIZENS.—A vessel satisfying sub-
section (a) is deemed to be owned only by citizens of the United 
States under sections 12103, 12132, and 50501 of this title.
H. R. 1442—16
‘‘§ 12118. Owners engaged primarily in manufacturing or 
mineral industry 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BOWATERS CORPORATION.—The term ‘Bowaters corpora-
tion’ means a corporation that has filed a certificate under 
oath with the Secretary, in the form and at the times prescribed 
by the Secretary, establishing that—
‘‘(A) the corporation is incorporated under the laws 
of the United States or a State; 
‘‘(B) a majority of the officers and directors of the 
corporation are individuals who are citizens of the United 
States; 
‘‘(C) at least 90 percent of the employees of the corpora-
tion are residents of the United States; 
‘‘(D) the corporation is engaged primarily in a manufac-
turing or mineral industry in the United States; 
‘‘(E) the total book value of the vessels owned by the 
corporation is not more than 10 percent of the total book 
value of the assets of the corporation; and 
‘‘(F) the corporation buys or produces in the United 
States at least 75 percent of the raw materials used or 
sold in its operations. 
‘‘(2) PARENT.—The term ‘parent’ means a corporation that 
has filed a certificate under oath with the Secretary, in the 
form and at the times prescribed by the Secretary, establishing 
that the corporation—
‘‘(A) is incorporated under the laws of the United States 
or a State; and 
‘‘(B) controls, directly or indirectly, at least 50 percent 
of the voting stock of a Bowaters corporation. 
‘‘(3) SUBSIDIARY.—The term ‘subsidiary’ means a corpora-
tion that has filed a certificate under oath with the Secretary, 
in the form and at the times prescribed by the Secretary, 
establishing that the corporation—
‘‘(A) is incorporated under the laws of the United States 
or a State; and 
‘‘(B) has at least 50 percent of its voting stock con-
trolled, directly or indirectly, by a Bowaters corporation 
or its parent. 
‘‘(b) DEEMED CITIZEN.—A Bowaters corporation is deemed to 
be a citizen of the United States for purposes of chapters 121, 
551, and 561 and section 80104 of this title. 
‘‘(c) ISSUANCE OF DOCUMENTATION.—A certificate of documenta-
tion and appropriate endorsement may be issued for a vessel that—
‘‘(1) is owned by a Bowaters corporation; 
‘‘(2) was built in the United States; and 
‘‘(3)(A) is self-propelled and less than 500 gross tons as 
measured under section 14502 of this title, or an alternate 
tonnage as measured under section 14302 of this title as pre-
scribed by the Secretary under section 14104 of this title; 
or 
‘‘(B) is not self-propelled. 
‘‘(d) EFFECTS OF DOCUMENTATION.—
‘‘(1) IN GENERAL.—Subject to paragraph (2)—
‘‘(A) a vessel documented under this section may 
engage in the coastwise trade; and
H. R. 1442—17
‘‘(B) the vessel and its owner and master are entitled 
to the same benefits and are subject to the same require-
ments and penalties as if the vessel were otherwise docu-
mented or exempt from documentation under this chapter. 
‘‘(2) TRANSPORTATION OF PASSENGERS OR MERCHANDISE.—
A vessel documented under this section may transport pas-
sengers or merchandise for hire in the coastwise trade only—
‘‘(A) as a service for a parent or subsidiary of the 
corporation owning the vessel; or 
‘‘(B) when under a demise or bareboat charter, at pre-
vailing rates for use not in the domestic noncontiguous 
trades, from the corporation owning the vessel to a carrier 
that—
‘‘(i) is subject to jurisdiction under subchapter II 
of chapter 135 of title 49; 
‘‘(ii) otherwise qualifies as a citizen of the United 
States under section 50501 of this title; and 
‘‘(iii) is not owned or controlled, directly or 
indirectly, by the corporation owning the vessel. 
‘‘(e) VALIDITY OF CORPORATE CERTIFICATE.—A certificate filed 
by a corporation under this section remains valid only as long 
as the corporation continues to satisfy the conditions required of 
the corporation by this section. When a corporation no longer satis-
fies those conditions, the corporation loses its status under this 
section and immediately shall surrender to the Secretary any docu-
ments issued to it based on that status. 
‘‘(f) PENALTIES.—
‘‘(1) FALSIFYING MATERIAL FACT.—If a corporation know-
ingly falsifies a material fact in a certificate filed under sub-
section (a), the vessel (or its value) documented or operated 
under this section shall be forfeited. 
‘‘(2) TRANSPORTING MERCHANDISE.—If a vessel transports 
merchandise for hire in violation of this section, the merchan-
dise shall be forfeited to the United States Government. 
‘‘(3) TRANSPORTING
PASSENGERS.—If a vessel transports 
passengers for hire in violation of this section, the vessel is 
liable for a penalty of $200 for each passenger so transported. 
‘‘(4) REMISSION
OR
MITIGATION.—A penalty or forfeiture 
incurred under this subsection may be remitted or mitigated 
under section 2107(b) of this title. 
‘‘§ 12119. Owners engaged primarily in leasing or financing 
transactions 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) AFFILIATE.—The term ‘affiliate’ means, with respect 
to any person, any other person that is—
‘‘(i) directly or indirectly controlled by, under common 
control with, or controlling that person; or 
‘‘(ii) named as being part of the same consolidated 
group in any report or other document submitted to the 
United States Securities and Exchange Commission or the 
Internal Revenue Service. 
‘‘(2) CARGO.—The term ‘cargo’ does not include cargo to 
which title is held for non-commercial reasons and primarily 
for the purpose of evading the requirements of subsection (c)(3). 
‘‘(3) OIL.—The term ‘oil’ has the meaning given that term 
in section 2101(20) of this title.
H. R. 1442—18
‘‘(4) PASSIVE INVESTMENT.—The term ‘passive investment’ 
means an investment in which neither the investor nor any 
affiliate of the investor is involved in, or has the power to 
be involved in, the formulation, determination, or direction 
of any activity or function concerning the management, use, 
or operation of the asset that is the subject of the investment. 
‘‘(5) QUALIFIED PROPRIETARY CARGO.—The term ‘qualified 
proprietary cargo’ means—
‘‘(A) oil, petroleum products, petrochemicals, or lique-
fied natural gas cargo that is beneficially owned by the 
person that submits to the Secretary an application or 
annual certification under subsection (c)(3), or by an affil-
iate of that person, immediately before, during, or imme-
diately after the cargo is carried in coastwise trade on 
a vessel owned by that person; 
‘‘(B) oil, petroleum products, petrochemicals, or lique-
fied natural gas cargo not beneficially owned by the person 
that submits to the Secretary an application or an annual 
certification under subsection (c)(3), or by an affiliate of 
that person, but which is carried in coastwise trade by 
a vessel owned by that person and which is part of an 
arrangement in which vessels owned by that person and 
at least one other person are operated collectively as one 
fleet, to the extent that an equal amount of oil, petroleum 
products, petrochemicals, or liquefied natural gas cargo 
beneficially owned by that person, or by an affiliate of 
that person, is carried in coastwise trade on one or more 
other vessels, not owned by that person, or by an affiliate 
of that person, if the other vessel or vessels are also part 
of the same arrangement; 
‘‘(C) in the case of a towing vessel associated with 
a non-self-propelled tank vessel where both vessels function 
as a single self-propelled vessel, oil, petroleum products, 
petrochemicals, or liquefied natural gas cargo that is bene-
ficially owned by the person that owns both the towing 
vessel and the non-self-propelled tank vessel, or any United 
States affiliate of that person, immediately before, during, 
or immediately after the cargo is carried in coastwise trade 
on either of those vessels; or 
‘‘(D) any oil, petroleum products, petrochemicals, or 
liquefied natural gas cargo carried on any vessel that is 
either a self-propelled tank vessel having a length of at 
least 210 meters or a tank vessel that is a liquefied natural 
gas carrier that—
‘‘(i) was delivered by the builder of the vessel to 
the owner of the vessel after December 31, 1999; and 
‘‘(ii) was purchased by a person for the purpose, 
and with the reasonable expectation, of transporting 
on the vessel liquefied natural gas or unrefined petro-
leum beneficially owned by the owner of the vessel, 
or an affiliate of the owner, from Alaska to the conti-
nental United States. 
‘‘(6) UNITED STATES AFFILIATE.—The term ‘United States 
affiliate’ means, with respect to any person, an affiliate the 
principal place of business of which is located in the United 
States.
H. R. 1442—19
‘‘(b) REQUIREMENTS.—A coastwise endorsement may be issued 
for a vessel if—
‘‘(1) the vessel satisfies the requirements for a coastwise 
endorsement, except for the ownership requirement otherwise 
applicable without regard to this section; 
‘‘(2) the person that owns the vessel (or, if the vessel 
is owned by a trust or similar arrangement, the beneficiary 
of the trust or similar arrangement) meets the requirements 
of subsection (c); 
‘‘(3) the vessel is under a demise charter to a person that 
certifies to the Secretary that the person is a citizen of the 
United States under section 50501 of this title for engaging 
in the coastwise trade; and 
‘‘(4) the demise charter is for a period of at least 3 years 
or a shorter period as may be prescribed by the Secretary. 
‘‘(c) OWNERSHIP CERTIFICATION.—
‘‘(1) IN
GENERAL.—A person meets the requirements of 
this subsection if the person transmits to the Secretary each 
year the certification required by paragraph (2) or (3) with 
respect to a vessel. 
‘‘(2) INVESTMENT CERTIFICATION.—To meet the certification 
requirement of this paragraph, a person shall certify that it—
‘‘(A) is a leasing company, bank, or financial institution; 
‘‘(B) owns, or holds the beneficial interest in, the vessel 
solely as a passive investment; 
‘‘(C) does not operate any vessel for hire and is not 
an affiliate of any person that operates any vessel for 
hire; and 
‘‘(D) is independent from, and not an affiliate of, any 
charterer of the vessel or any other person that has the 
right, directly or indirectly, to control or direct the move-
ment or use of the vessel. 
‘‘(3) CERTAIN TANK VESSELS.—
‘‘(A) IN GENERAL.—To meet the certification require-
ment of this paragraph, a person shall certify that—
‘‘(i) the aggregate book value of the vessels owned 
by the person and United States affiliates of the person 
does not exceed 10 percent of the aggregate book value 
of all assets owned by the person and its United States 
affiliates; 
‘‘(ii) not more than 10 percent of the aggregate 
revenues of the person and its United States affiliates 
is derived from the ownership, operation, or manage-
ment of vessels; 
‘‘(iii) at least 70 percent of the aggregate tonnage 
of all cargo carried by all vessels owned by the person 
and its United States affiliates and documented with 
a coastwise endorsement is qualified proprietary cargo; 
‘‘(iv) any cargo other than qualified proprietary 
cargo carried by all vessels owned by the person and 
its United States affiliates and documented with a 
coastwise endorsement consists of oil, petroleum prod-
ucts, petrochemicals, or liquified natural gas; 
‘‘(v) no vessel owned by the person or any of its 
United States affiliates and documented with a coast-
wise endorsement carries molten sulphur; and
H. R. 1442—20
‘‘(vi) the person owned one or more vessels docu-
mented under this section as of August 9, 2004. 
‘‘(B) APPLICATION ONLY TO CERTAIN VESSELS.—A person 
may make a certification under this paragraph only with 
respect to—
‘‘(i) a tank vessel having a tonnage of at least 
6,000 gross tons, as measured under section 14502 
of this title (or an alternative tonnage measured under 
section 14302 of this title as prescribed by the Sec-
retary under section 14104 of this title); or 
‘‘(ii) a towing vessel associated with a non-self-
propelled tank vessel that meets the requirements of 
clause (i), where both vessels function as a single self-
propelled vessel. 
‘‘(d) FILING OF DEMISE CHARTER.—The demise charter and any 
amendments to the charter shall be filed with the certification 
required by subsection (b)(3) or within 10 days after filing an 
amendment to the charter. The charter and amendments shall 
be made available to the public. 
‘‘(e) CONTINUATION OF ENDORSEMENT AFTER TERMINATION OF 
CHARTER.—When a charter required by subsection (b)(3) is termi-
nated for default by the charterer, the Secretary may continue 
the coastwise endorsement for not more than 6 months on terms 
and conditions the Secretary may prescribe. 
‘‘(f) DEEMED OWNED
BY CITIZENS.—A vessel satisfying the 
requirements of this section is deemed to be owned only by citizens 
of the United States under sections 12103 and 50501 of this title. 
‘‘§ 12120. Liquified gas tankers 
‘‘Notwithstanding any agreement with the United States 
Government, the Secretary may issue a certificate of documentation 
with a coastwise endorsement for a vessel to transport liquified 
natural gas or liquified petroleum gas to Puerto Rico from other 
ports in the United States, if the vessel—
‘‘(1) is a foreign built vessel that was built before October 
19, 1996; or 
‘‘(2) was documented under this chapter before that date, 
even if the vessel is placed under a foreign registry and subse-
quently redocumented under this chapter for operation under 
this section. 
‘‘§ 12121. Small passenger vessels and uninspected passenger 
vessels 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE
VESSEL.—The term ‘eligible vessel’ means 
a vessel that—
‘‘(A) was not built in the United States and is at 
least 3 years old; or 
‘‘(B) if rebuilt, was rebuilt outside the United States 
at least 3 years before the certificate requested under sub-
section (b) would take effect. 
‘‘(2) SMALL PASSENGER VESSEL; UNINSPECTED PASSENGER 
VESSEL; PASSENGER
FOR
HIRE.—The terms ‘small passenger 
vessel’, ‘uninspected passenger vessel’, and ‘passenger for hire’ 
have the meaning given those terms in section 2101 of this 
title.
H. R. 1442—21
‘‘(b) ISSUANCE OF CERTIFICATE AND ENDORSEMENT.—Notwith-
standing sections 12112, 12113, 55102, and 55103 of this title, 
the Secretary may issue a certificate of documentation with an 
appropriate endorsement for employment in the coastwise trade 
as a small passenger vessel or an uninspected passenger vessel 
in the case of an eligible vessel authorized to carry no more than 
12 passengers for hire if the Secretary of Transportation, after 
notice and an opportunity for public comment, determines that 
the employment of the vessel in the coastwise trade will not 
adversely affect—
‘‘(1) United States vessel builders; or 
‘‘(2) the coastwise trade business of any person that employs 
vessels built in the United States in that business. 
‘‘(c) REVOCATION.—
‘‘(1) FOR FRAUD.—The Secretary shall revoke a certificate 
or endorsement issued under subsection (b) if the Secretary 
of Transportation, after notice and an opportunity for a hearing, 
determines that the certificate or endorsement was obtained 
by fraud. 
‘‘(2) OTHER PROVISIONS NOT AFFECTED.—Paragraph (1) does 
not affect—
‘‘(A) the criminal prohibition on fraud and false state-
ments in section 1001 of title 18; or 
‘‘(B) any other authority of the Secretary to revoke 
a certificate or endorsement issued under subsection (b). 
‘‘SUBCHAPTER III—MISCELLANEOUS 
‘‘§ 12131. Command of documented vessels 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), a docu-
mented vessel may be placed under the commmand only of a citizen 
of the United States. 
‘‘(b) EXCEPTIONS.—Subsection (a) does not apply to—
‘‘(1) a vessel with only a recreational endorsement; or 
‘‘(2) an unmanned barge operating outside of the territorial 
waters of the United States. 
‘‘§ 12132. Loss of coastwise trade privileges 
‘‘(a) SOLD FOREIGN OR PLACED UNDER FOREIGN REGISTRY.—
A vessel of more than 200 gross tons (as measured under chapter 
143 of this title), eligible to engage in the coastwise trade, and 
later sold foreign in whole or in part or placed under foreign 
registry may not thereafter engage in the coastwise trade. 
‘‘(b) REBUILT OUTSIDE THE UNITED STATES.—A vessel eligible 
to engage in the coastwise trade and later rebuilt outside the 
United States may not thereafter engage in the coastwise trade. 
‘‘§ 12133. Duty to carry certificate on vessel and allow exam-
ination 
‘‘(a) DUTY TO CARRY.—The certificate of documentation of a 
vessel shall be carried on the vessel unless the vessel is exempt 
by regulation from carrying the certificate. 
‘‘(b) AVAILABILITY.—The owner or individual in charge of a 
vessel required to carry its certificate of documentation shall make 
the certificate available for examination at the request of an officer 
enforcing the revenue laws or as otherwise required by law or 
regulation.
H. R. 1442—22
‘‘(c) CRIMINAL PENALTY.—A person willfully violating subsection 
(b) shall be fined under title 18, imprisoned for not more than 
one year, or both. 
‘‘§ 12134. Evidentiary uses of documentation 
‘‘A certificate of documentation is—
‘‘(1) conclusive evidence of nationality for international pur-
poses, but not in a proceeding conducted under the laws of 
the United States; 
‘‘(2) conclusive evidence of qualification to engage in a 
specified trade; and 
‘‘(3) not conclusive evidence of ownership in a proceeding 
in which ownership is in issue. 
‘‘§ 12135. Invalidation of certificates of documentation 
‘‘A certificate of documentation or an endorsement on the certifi-
cate is invalid if the vessel for which it is issued—
‘‘(1) no longer meets the requirements of this chapter and 
regulations prescribed under this chapter applicable to the 
certificate or endorsement; or 
‘‘(2) is placed under the command of an individual not 
a citizen of the United States in violation of section 12131 
of this title. 
‘‘§ 12136. Surrender of certificates of documentation 
‘‘(a) SURRENDER.—An invalid certificate of documentation, or 
a certificate with an invalid endorsement, shall be surrendered 
as provided by regulations prescribed by the Secretary. 
‘‘(b) CONDITIONS FOR SURRENDER.—
‘‘(1) VESSELS OVER 1,000 TONS.—The Secretary may condi-
tion approval of the surrender of the certificate of documenta-
tion for a vessel over 1,000 gross tons. 
‘‘(2) VESSELS COVERED BY MORTGAGE.—The Secretary may 
approve the surrender of the certificate of documentation of 
a vessel covered by a mortgage filed or recorded under section 
31321 of this title only if the mortgagee consents. 
‘‘(3) NOTICE OF LIEN.—The Secretary may not refuse to 
approve the surrender of the certificate of documentation for 
a vessel solely on the basis that a notice of a claim of a 
lien on the vessel has been recorded under section 31343(a) 
of this title. 
‘‘(c) CONTINUED APPLICATION OF CERTAIN LAWS.—
‘‘(1) IN
GENERAL.—Notwithstanding subsection (a), until 
the certificate of documentation is surrendered with the 
approval of the Secretary, a documented vessel is deemed to 
continue to be documented under this chapter for purposes 
of—
‘‘(A) chapter 313 of this title for an instrument filed 
or recorded before the date of invalidation and an assign-
ment after that date; 
‘‘(B) sections 56101 and 56102(a)(2) and chapter 563 
of this title; and 
‘‘(C) any other law of the United States identified by 
the Secretary by regulation as a law to which the Secretary 
applies this subsection.
H. R. 1442—23
‘‘(2) EXCEPTION.—This subsection does not apply when a 
vessel is forfeited or sold by order of a district court of the 
United States. 
‘‘§ 12137. Recording of vessels built in the United States 
‘‘The Secretary may provide for recording and certifying 
information about vessels built in the United States that the Sec-
retary considers to be in the public interest. 
‘‘§ 12138. List of documented vessels 
‘‘(a) IN GENERAL.—The Secretary shall publish periodically a 
list of all documented vessels and information about those vessels 
that the Secretary considers pertinent or useful. The list shall 
contain a notation clearly indicating all vessels classed by the 
American Bureau of Shipping. 
‘‘(b) VESSELS FOR CABLE LAYING, MAINTENANCE, AND REPAIR.—
‘‘(1) IN GENERAL.—The Secretary of Transportation shall 
develop, maintain, and periodically update an inventory of ves-
sels that are documented under this chapter, are at least 200 
feet in length, and have the capability to lay, maintain, or 
repair a submarine cable, without regard to whether a par-
ticular vessel is classed as a cable ship or cable vessel. 
‘‘(2) INFORMATION TO BE INCLUDED.—For each vessel listed 
in the inventory, the Secretary of Transportation shall include 
in the inventory—
‘‘(A) the name, length, beam, depth, and other distin-
guishing characteristics of the vessel; 
‘‘(B) the abilities and limitations of the vessel with 
respect to laying, maintaining, and repairing a submarine 
cable; and 
‘‘(C) the name and address of the person to whom 
inquiries regarding the vessel may be made. 
‘‘(3) PUBLICATION.—The Secretary of Transportation shall 
publish in the Federal Register an updated inventory every 
6 months. 
‘‘§ 12139. Reports 
‘‘(a) IN GENERAL.—To ensure compliance with this chapter and 
laws governing the qualifications of vessels to engage in the coast-
wise trade and the fisheries, the Secretary may require owners, 
masters, and charterers of documented vessels to submit reports 
in any reasonable form and manner the Secretary may prescribe. 
‘‘(b) VESSELS REBUILT OUTSIDE UNITED STATES.—
‘‘(1) IN GENERAL.—Under regulations prescribed by the Sec-
retary, if a vessel exceeding the tonnage specified in paragraph 
(2) and documented or last documented under the laws of 
the United States is rebuilt outside the United States, the 
owner or master shall submit a report of the rebuilding to 
the Secretary. 
‘‘(2) TONNAGE.—The tonnage referred to in paragraph (1) 
is—
‘‘(A) 500 gross tons as measured under section 14502 
of this title; or 
‘‘(B) an alternate tonnage as measured under section 
14302 of this title as prescribed by the Secretary under 
section 14104 of this title.
H. R. 1442—24
‘‘(3) TIMING OF SUBMISSION.—If the rebuilding is completed 
in the United States, the report shall be submitted when the 
rebuilding is completed. If the rebuilding is completed outside 
the United States, the report shall be submitted when the 
vessel first arrives at a port in the customs territory of the 
United States. 
‘‘SUBCHAPTER IV—PENALTIES 
‘‘§ 12151. Penalties 
‘‘(a) IN GENERAL.—A person that violates this chapter or a 
regulation prescribed under this chapter is liable to the United 
States Government for a civil penalty of not more than $10,000. 
Each day of a continuing violation is a separate violation. 
‘‘(b) SEIZURE AND FORFEITURE OF VESSELS.—A vessel and its 
equipment are liable to seizure by and forfeiture to the Government 
if—
‘‘(1) the owner of the vessel or the representative or agent 
of the owner knowingly falsifies or conceals a material fact, 
or knowingly makes a false statement or representation, about 
the documentation of the vessel or in applying for documenta-
tion of the vessel; 
‘‘(2) a certificate of documentation is knowingly and fraudu-
lently used for the vessel; 
‘‘(3) the vessel is operated after its endorsement has been 
denied or revoked under section 12152 of this title; 
‘‘(4) the vessel is employed in a trade without an appro-
priate endorsement; 
‘‘(5) the vessel has only a recreational endorsement and 
is operated other than for pleasure; 
‘‘(6) the vessel is a documented vessel and is placed under 
the command of a person not a citizen of the United States, 
except as authorized by section 12131(b) of this title; or 
‘‘(7) the vessel is rebuilt outside the United States and 
a report of the rebuilding is not submitted as required by 
section 12139(b) of this title. 
‘‘(c) ENGAGING
IN FISHING AFTER FALSIFYING ELIGIBILITY.—
In addition to other penalties under this section, the owner of 
a documented vessel for which a fishery endorsement has been 
issued is liable to the Government for a civil penalty of not more 
than $100,000 for each day the vessel engages in fishing (as defined 
in section 3 of the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1802)) within the exclusive economic 
zone, if the owner or the representative or agent of the owner 
knowingly falsified or concealed a material fact, or knowingly made 
a false statement or representation, about the eligibility of the 
vessel under section 12113(c) or (d) of this title in applying for 
or applying to renew the fishery endorsement. 
‘‘§ 12152. Denial or revocation of endorsement for non-pay-
ment of civil penalty 
‘‘If the owner of a vessel fails to pay a civil penalty imposed 
by the Secretary, the Secretary may deny the issuance or renewal 
of an endorsement, or revoke the endorsement, on a certificate 
of documentation issued for the vessel under this chapter.’’.
H. R. 1442—25
SEC. 6. SUBTITLE III OF TITLE 46. 
(a) SUBTITLE ANALYSIS.—The analysis of subtitle III of title 
46, United States Code, is amended to read as follows:
‘‘Chapter 
Sec.
‘‘301. General Liability Provisions ................................................................30101
‘‘303. Death on the High Seas .........................................................................30301
‘‘305. Exoneration and Limitation of Liability ...........................................30501
‘‘307. Liability of Water Carriers ...................................................................30701
‘‘309. Suits in Admiralty Against the United States .................................30901
‘‘311. Suits Involving Public Vessels .............................................................31101
‘‘313. Commercial Instruments and Maritime Liens ................................31301’’.
(b) REPEALS.—Title 46, United States Code, is amended by 
striking chapter 301 and the lines appearing immediately before 
and immediately after chapter 313 indicating that certain chapters 
are reserved. 
(c) CHAPTERS
301–311.—Title 46, United States Code, is 
amended by inserting after the analysis of subtitle III the following:
‘‘CHAPTER 301—GENERAL LIABILITY PROVISIONS
‘‘Sec. 
‘‘30101.
Extension of jurisdiction to cases of damage or injury on land. 
‘‘30102.
Liability to passengers. 
‘‘30103.
Liability of master, mate, engineer, and pilot. 
‘‘30104.
Personal injury to or death of seamen. 
‘‘30105.
Restriction on recovery by non-citizens and non-resident aliens for inci-
dents in waters of other countries. 
‘‘30106.
Time limit on bringing maritime action for personal injury or death.
‘‘§ 30101. Extension of jurisdiction to cases of damage or 
injury on land 
‘‘(a) IN GENERAL.—The admiralty and maritime jurisdiction 
of the United States extends to and includes cases of injury or 
damage, to person or property, caused by a vessel on navigable 
waters, even though the injury or damage is done or consummated 
on land. 
‘‘(b) PROCEDURE.—A civil action in a case under subsection 
(a) may be brought in rem or in personam according to the principles 
of law and the rules of practice applicable in cases where the 
injury or damage has been done and consummated on navigable 
waters. 
‘‘(c) ACTIONS AGAINST UNITED STATES.—
‘‘(1) EXCLUSIVE
REMEDY.—In a civil action against the 
United States for injury or damage done or consummated on 
land by a vessel on navigable waters, chapter 309 or 311 
of this title, as appropriate, provides the exclusive remedy. 
‘‘(2) ADMINISTRATIVE CLAIM.—A civil action described in 
paragraph (1) may not be brought until the expiration of the 
6-month period after the claim has been presented in writing 
to the agency owning or operating the vessel causing the injury 
or damage. 
‘‘§ 30102. Liability to passengers 
‘‘(a) LIABILITY.—The owner and master of a vessel, and the 
vessel, are liable for personal injury to a passenger or damage 
to a passenger’s baggage caused by—
‘‘(1) a neglect or failure to comply with part B or F of 
subtitle II of this title; or 
‘‘(2) a known defect in the steaming apparatus or hull 
of the vessel.
H. R. 1442—26
‘‘(b) NOT SUBJECT TO LIMITATION.—A liability imposed under 
this section is not subject to limitation under chapter 305 of this 
title. 
‘‘§ 30103. Liability of master, mate, engineer, and pilot 
‘‘A person may bring a civil action against a master, mate, 
engineer, or pilot of a vessel, and recover damages, for personal 
injury or loss caused by the master’s, mate’s, engineer’s, or pilot’s—
‘‘(1) negligence or willful misconduct; or 
‘‘(2) neglect or refusal to obey the laws governing the 
navigation of vessels. 
‘‘§ 30104. Personal injury to or death of seamen 
‘‘(a) CAUSE OF ACTION.—A seaman injured in the course of 
employment or, if the seaman dies from the injury, the personal 
representative of the seaman may elect to bring a civil action 
at law, with the right of trial by jury, against the employer. Laws 
of the United States regulating recovery for personal injury to, 
or death of, a railway employee apply to an action under this 
section. 
‘‘(b) VENUE.—An action under this section shall be brought 
in the judicial district in which the employer resides or the 
employer’s principal office is located. 
‘‘§ 30105. Restriction on recovery by non-citizens and non-
resident aliens for incidents in waters of other 
countries 
‘‘(a) DEFINITION.—In this section, the term ‘continental shelf ’ 
has the meaning given that term in article I of the 1958 Convention 
on the Continental Shelf. 
‘‘(b) RESTRICTION.—Except as provided in subsection (c), a civil 
action for maintenance and cure or for damages for personal injury 
or death may not be brought under a maritime law of the United 
States if—
‘‘(1) the individual suffering the injury or death was not 
a citizen or permanent resident alien of the United States 
at the time of the incident giving rise to the action; 
‘‘(2) the incident occurred in the territorial waters or waters 
overlaying the continental shelf of a country other than the 
United States; and 
‘‘(3) the individual suffering the injury or death was 
employed at the time of the incident by a person engaged 
in the exploration, development, or production of offshore min-
eral or energy resources, including drilling, mapping, surveying, 
diving, pipelaying, maintaining, repairing, constructing, or 
transporting supplies, equipment, or personnel, but not 
including transporting those resources by a vessel constructed 
or adapted primarily to carry oil in bulk in the cargo spaces. 
‘‘(c) NONAPPLICATION.—Subsection (b) does not apply if the indi-
vidual bringing the action establishes that a remedy is not available 
under the laws of—
‘‘(1) the country asserting jurisdiction over the area in 
which the incident occurred; or 
‘‘(2) the country in which the individual suffering the injury 
or death maintained citizenship or residency at the time of 
the incident.
H. R. 1442—27
‘‘§ 30106. Time limit on bringing maritime action for personal 
injury or death 
‘‘Except as otherwise provided by law, a civil action for damages 
for personal injury or death arising out of a maritime tort must 
be brought within 3 years after the cause of action arose.
‘‘CHAPTER 303—DEATH ON THE HIGH SEAS
‘‘Sec. 
‘‘30301.
Short title. 
‘‘30302.
Cause of action. 
‘‘30303.
Amount and apportionment of recovery. 
‘‘30304.
Contributory negligence. 
‘‘30305.
Death of plaintiff in pending action. 
‘‘30306.
Foreign cause of action. 
‘‘30307.
Commercial aviation accidents. 
‘‘30308.
Nonapplication.
‘‘§ 30301. Short title 
‘‘This chapter may be cited as the ‘Death on the High Seas 
Act’. 
‘‘§ 30302. Cause of action 
‘‘When the death of an individual is caused by wrongful act, 
neglect, or default occurring on the high seas beyond 3 nautical 
miles from the shore of the United States, the personal representa-
tive of the decedent may bring a civil action in admiralty against 
the person or vessel responsible. The action shall be for the exclusive 
benefit of the decedent’s spouse, parent, child, or dependent relative. 
‘‘§ 30303. Amount and apportionment of recovery 
‘‘The recovery in an action under this chapter shall be a fair 
compensation for the pecuniary loss sustained by the individuals 
for whose benefit the action is brought. The court shall apportion 
the recovery among those individuals in proportion to the loss 
each has sustained. 
‘‘§ 30304. Contributory negligence 
‘‘In an action under this chapter, contributory negligence of 
the decedent is not a bar to recovery. The court shall consider 
the degree of negligence of the decedent and reduce the recovery 
accordingly. 
‘‘§ 30305. Death of plaintiff in pending action 
‘‘If a civil action in admiralty is pending in a court of the 
United States to recover for personal injury caused by wrongful 
act, neglect, or default described in section 30302 of this title, 
and the individual dies during the action as a result of the wrongful 
act, neglect, or default, the personal representative of the decedent 
may be substituted as the plaintiff and the action may proceed 
under this chapter for the recovery authorized by this chapter. 
‘‘§ 30306. Foreign cause of action 
‘‘When a cause of action exists under the law of a foreign 
country for death by wrongful act, neglect, or default on the high 
seas, a civil action in admiralty may be brought in a court of 
the United States based on the foreign cause of action, without 
abatement of the amount for which recovery is authorized.
H. R. 1442—28
‘‘§ 30307. Commercial aviation accidents 
‘‘(a) DEFINITION.—In this section, the term ‘nonpecuniary dam-
ages’ means damages for loss of care, comfort, and companionship. 
‘‘(b) BEYOND 12 NAUTICAL MILES.—In an action under this 
chapter, if the death resulted from a commercial aviation accident 
occurring on the high seas beyond 12 nautical miles from the 
shore of the United States, additional compensation is recoverable 
for nonpecuniary damages, but punitive damages are not recover-
able. 
‘‘(c) WITHIN 12 NAUTICAL MILES.—This chapter does not apply 
if the death resulted from a commercial aviation accident occurring 
on the high seas 12 nautical miles or less from the shore of the 
United States. 
‘‘§ 30308. Nonapplication 
‘‘(a) STATE LAW.—This chapter does not affect the law of a 
State regulating the right to recover for death. 
‘‘(b) INTERNAL WATERS.—This chapter does not apply to the 
Great Lakes or waters within the territorial limits of a State.
‘‘CHAPTER 305—EXONERATION AND LIMITATION OF 
LIABILITY
‘‘Sec. 
‘‘30501.
Definition. 
‘‘30502.
Application. 
‘‘30503.
Declaration of nature and value of goods. 
‘‘30504.
Loss by fire. 
‘‘30505.
General limit of liability. 
‘‘30506.
Limit of liability for personal injury or death. 
‘‘30507.
Apportionment of losses. 
‘‘30508.
Provisions requiring notice of claim or limiting time for bringing action. 
‘‘30509.
Provisions limiting liability for personal injury or death. 
‘‘30510.
Vicarious liability for medical malpractice with regard to crew. 
‘‘30511.
Action by owner for limitation. 
‘‘30512.
Liability as master, officer, or seaman not affected.
‘‘§ 30501. Definition 
‘‘In this chapter, the term ‘owner’ includes a charterer that 
mans, supplies, and navigates a vessel at the charterer’s own 
expense or by the charterer’s own procurement. 
‘‘§ 30502. Application 
‘‘Except as otherwise provided, this chapter (except section 
30503) applies to seagoing vessels and vessels used on lakes or 
rivers or in inland navigation, including canal boats, barges, and 
lighters. 
‘‘§ 30503. Declaration of nature and value of goods 
‘‘(a) IN GENERAL.—If a shipper of an item named in subsection 
(b), contained in a parcel, package, or trunk, loads the item as 
freight or baggage on a vessel, without at the time of loading 
giving to the person receiving the item a written notice of the 
true character and value of the item and having that information 
entered on the bill of lading, the owner and master of the vessel 
are not liable as carriers. The owner and master are not liable 
beyond the value entered on the bill of lading. 
‘‘(b) ITEMS.—The items referred to in subsection (a) are precious 
metals, gold or silver plated articles, precious stones, jewelry, trin-
kets, watches, clocks, glass, china, coins, bills, securities, printings,
H. R. 1442—29
engravings, pictures, stamps, maps, papers, silks, furs, lace, and 
similar items of high value and small size. 
‘‘§ 30504. Loss by fire 
‘‘The owner of a vessel is not liable for loss or damage to 
merchandise on the vessel caused by a fire on the vessel unless 
the fire resulted from the design or neglect of the owner. 
‘‘§ 30505. General limit of liability 
‘‘(a) IN GENERAL.—Except as provided in section 30506 of this 
title, the liability of the owner of a vessel for any claim, debt, 
or liability described in subsection (b) shall not exceed the value 
of the vessel and pending freight. If the vessel has more than 
one owner, the proportionate share of the liability of any one owner 
shall not exceed that owner’s proportionate interest in the vessel 
and pending freight. 
‘‘(b) CLAIMS
SUBJECT
TO
LIMITATION.—Unless otherwise 
excluded by law, claims, debts, and liabilities subject to limitation 
under subsection (a) are those arising from any embezzlement, 
loss, or destruction of any property, goods, or merchandise shipped 
or put on board the vessel, any loss, damage, or injury by collision, 
or any act, matter, or thing, loss, damage, or forfeiture, done, 
occasioned, or incurred, without the privity or knowledge of the 
owner. 
‘‘(c) WAGES.—Subsection (a) does not apply to a claim for wages. 
‘‘§ 30506. Limit of liability for personal injury or death 
‘‘(a) APPLICATION.—This section applies only to seagoing vessels, 
but does not apply to pleasure yachts, tugs, towboats, towing ves-
sels, tank vessels, fishing vessels, fish tender vessels, canal boats, 
scows, car floats, barges, lighters, or nondescript vessels. 
‘‘(b) MINIMUM LIABILITY.—If the amount of the vessel owner’s 
liability determined under section 30505 of this title is insufficient 
to pay all losses in full, and the portion available to pay claims 
for personal injury or death is less than $420 times the tonnage 
of the vessel, that portion shall be increased to $420 times the 
tonnage of the vessel. That portion may be used only to pay claims 
for personal injury or death. 
‘‘(c) CALCULATION OF TONNAGE.—Under subsection (b), the ton-
nage of a self-propelled vessel is the gross tonnage without deduc-
tion for engine room, and the tonnage of a sailing vessel is the 
tonnage for documentation. However, space for the use of seamen 
is excluded. 
‘‘(d) CLAIMS ARISING ON DISTINCT OCCASIONS.—Separate limits 
of liability apply to claims for personal injury or death arising 
on distinct occasions. 
‘‘(e) PRIVITY OR KNOWLEDGE.—In a claim for personal injury 
or death, the privity or knowledge of the master or the owner’s 
superintendent or managing agent, at or before the beginning of 
each voyage, is imputed to the owner. 
‘‘§ 30507. Apportionment of losses 
‘‘If the amounts determined under sections 30505 and 30506 
of this title are insufficient to pay all claims—
‘‘(1) all claimants shall be paid in proportion to their respec-
tive losses out of the amount determined under section 30505 
of this title; and
H. R. 1442—30
‘‘(2) personal injury and death claimants, if any, shall be 
paid an additional amount in proportion to their respective 
losses out of the additional amount determined under section 
30506(b) of this title. 
‘‘§ 30508. Provisions requiring notice of claim or limiting 
time for bringing action 
‘‘(a) APPLICATION.—This section applies only to seagoing vessels, 
but does not apply to pleasure yachts, tugs, towboats, towing ves-
sels, tank vessels, fishing vessels, fish tender vessels, canal boats, 
scows, car floats, barges, lighters, or nondescript vessels. 
‘‘(b) MINIMUM TIME LIMITS.—The owner, master, manager, or 
agent of a vessel transporting passengers or property between ports 
in the United States, or between a port in the United States 
and a port in a foreign country, may not limit by regulation, 
contract, or otherwise the period for—
‘‘(1) giving notice of, or filing a claim for, personal injury 
or death to less than 6 months after the date of the injury 
or death; or 
‘‘(2) bringing a civil action for personal injury or death 
to less than one year after the date of the injury or death. 
‘‘(c) EFFECT
OF FAILURE TO GIVE NOTICE.—When notice of 
a claim for personal injury or death is required by a contract, 
the failure to give the notice is not a bar to recovery if—
‘‘(1) the court finds that the owner, master, or agent of 
the vessel had knowledge of the injury or death and the owner 
has not been prejudiced by the failure; 
‘‘(2) the court finds there was a satisfactory reason why 
the notice could not have been given; or 
‘‘(3) the owner of the vessel fails to object to the failure 
to give the notice. 
‘‘(d) TOLLING OF PERIOD TO GIVE NOTICE.—If a claimant is 
a minor or mental incompetent, or if a claim is for wrongful death, 
any period provided by a contract for giving notice of the claim 
is tolled until the earlier of—
‘‘(1) the date a legal representative is appointed for the 
minor, incompetent, or decedent’s estate; or 
‘‘(2) 3 years after the injury or death. 
‘‘§ 30509. Provisions limiting liability for personal injury or 
death 
‘‘(a) PROHIBITION.—
‘‘(1) IN GENERAL.—The owner, master, manager, or agent 
of a vessel transporting passengers between ports in the United 
States, or between a port in the United States and a port 
in a foreign country, may not include in a regulation or contract 
a provision limiting—
‘‘(A) the liability of the owner, master, or agent for 
personal injury or death caused by the negligence or fault 
of the owner or the owner’s employees or agents; or 
‘‘(B) the right of a claimant for personal injury or 
death to a trial by court of competent jurisdiction. 
‘‘(2) VOIDNESS.—A provision described in paragraph (1) is 
void. 
‘‘(b) EMOTIONAL DISTRESS, MENTAL SUFFERING, AND PSYCHO-
LOGICAL INJURY.—
H. R. 1442—31
‘‘(1) IN GENERAL.—Subsection (a) does not prohibit a provi-
sion in a contract or in ticket conditions of carriage with a 
passenger that relieves an owner, master, manager, agent, 
operator, or crewmember of a vessel from liability for infliction 
of emotional distress, mental suffering, or psychological injury 
so long as the provision does not limit such liability when 
the emotional distress, mental suffering, or psychological injury 
is—
‘‘(A) the result of physical injury to the claimant caused 
by the negligence or fault of a crewmember or the owner, 
master, manager, agent, or operator; 
‘‘(B) the result of the claimant having been at actual 
risk of physical injury, and the risk was caused by the 
negligence or fault of a crewmember or the owner, master, 
manager, agent, or operator; or 
‘‘(C) intentionally inflicted by a crewmember or the 
owner, master, manager, agent, or operator. 
‘‘(2) SEXUAL OFFENSES.—This subsection does not limit the 
liability of a crewmember or the owner, master, manager, agent, 
or operator of a vessel in a case involving sexual harassment, 
sexual assault, or rape. 
‘‘§ 30510. Vicarious liability for medical malpractice with 
regard to crew 
‘‘In a civil action by any person in which the owner or operator 
of a vessel or employer of a crewmember is claimed to have vicarious 
liability for medical malpractice with regard to a crewmember occur-
ring at a shoreside facility, and to the extent the damages resulted 
from the conduct of any shoreside doctor, hospital, medical facility, 
or other health care provider, the owner, operator, or employer 
is entitled to rely on any statutory limitations of liability applicable 
to the doctor, hospital, medical facility, or other health care provider 
in the State of the United States in which the shoreside medical 
care was provided. 
‘‘§ 30511. Action by owner for limitation 
‘‘(a) IN GENERAL.—The owner of a vessel may bring a civil 
action in a district court of the United States for limitation of 
liability under this chapter. The action must be brought within 
6 months after a claimant gives the owner written notice of a 
claim. 
‘‘(b) CREATION OF FUND.—When the action is brought, the owner 
(at the owner’s option) shall—
‘‘(1) deposit with the court, for the benefit of claimants—
‘‘(A) an amount equal to the value of the owner’s 
interest in the vessel and pending freight, or approved 
security; and 
‘‘(B) an amount, or approved security, that the court 
may fix from time to time as necessary to carry out this 
chapter; or 
‘‘(2) transfer to a trustee appointed by the court, for the 
benefit of claimants—
‘‘(A) the owner’s interest in the vessel and pending 
freight; and 
‘‘(B) an amount, or approved security, that the court 
may fix from time to time as necessary to carry out this 
chapter.
H. R. 1442—32
‘‘(c) CESSATION OF OTHER ACTIONS.—When an action has been 
brought under this section and the owner has complied with sub-
section (b), all claims and proceedings against the owner related 
to the matter in question shall cease. 
‘‘§ 30512. Liability as master, officer, or seaman not affected 
‘‘This chapter does not affect the liability of an individual 
as a master, officer, or seaman, even though the individual is 
also an owner of the vessel.
‘‘CHAPTER 307—LIABILITY OF WATER CARRIERS
‘‘Sec. 
‘‘30701.
Definition. 
‘‘30702.
Application. 
‘‘30703.
Bills of lading. 
‘‘30704.
Loading, stowage, custody, care, and delivery. 
‘‘30705.
Seaworthiness. 
‘‘30706.
Defenses. 
‘‘30707.
Criminal penalty.
‘‘§ 30701. Definition 
‘‘In this chapter, the term ‘carrier’ means the owner, manager, 
charterer, agent, or master of a vessel. 
‘‘§ 30702. Application 
‘‘(a) IN GENERAL.—Except as otherwise provided, this chapter 
applies to a carrier engaged in the carriage of goods to or from 
any port in the United States. 
‘‘(b) LIVE ANIMALS.—Sections 30703 and 30704 of this title 
do not apply to the carriage of live animals. 
‘‘§ 30703. Bills of lading 
‘‘(a) ISSUANCE.—On demand of a shipper, the carrier shall issue 
a bill of lading or shipping document. 
‘‘(b) CONTENTS.—The bill of lading or shipping document shall 
include a statement of—
‘‘(1) the marks necessary to identify the goods; 
‘‘(2) the number of packages, or the quantity or weight, 
and whether it is carrier’s or shipper’s weight; and 
‘‘(3) the apparent condition of the goods. 
‘‘(c) PRIMA FACIE EVIDENCE OF RECEIPT.—A bill of lading or 
shipping document issued under this section is prima facie evidence 
of receipt of the goods described. 
‘‘§ 30704. Loading, stowage, custody, care, and delivery 
‘‘A carrier may not insert in a bill of lading or shipping docu-
ment a provision avoiding its liability for loss or damage arising 
from negligence or fault in loading, stowage, custody, care, or proper 
delivery. Any such provision is void. 
‘‘§ 30705. Seaworthiness 
‘‘(a) PROHIBITION.—A carrier may not insert in a bill of lading 
or shipping document a provision lessening or avoiding its obligation 
to exercise due diligence to—
‘‘(1) make the vessel seaworthy; and 
‘‘(2) properly man, equip, and supply the vessel. 
‘‘(b) VOIDNESS.—A provision described in subsection (a) is void.
H. R. 1442—33
‘‘§ 30706. Defenses 
‘‘(a) DUE DILIGENCE.—If a carrier has exercised due diligence 
to make the vessel in all respects seaworthy and to properly man, 
equip, and supply the vessel, the carrier and the vessel are not 
liable for loss or damage arising from an error in the navigation 
or management of the vessel. 
‘‘(b) OTHER DEFENSES.—A carrier and the vessel are not liable 
for loss or damage arising from—
‘‘(1) dangers of the sea or other navigable waters; 
‘‘(2) acts of God; 
‘‘(3) public enemies; 
‘‘(4) seizure under legal process; 
‘‘(5) inherent defect, quality, or vice of the goods; 
‘‘(6) insufficiency of package; 
‘‘(7) act or omission of the shipper or owner of the goods 
or their agent; or 
‘‘(8) saving or attempting to save life or property at sea, 
including a deviation in rendering such a service. 
‘‘§ 30707. Criminal penalty 
‘‘(a) IN GENERAL.—A carrier that violates this chapter shall 
be fined under title 18. 
‘‘(b) LIEN.—The amount of the fine and costs for the violation 
constitute a lien on the vessel engaged in the carriage. A civil 
action in rem to enforce the lien may be brought in the district 
court of the United States for any district in which the vessel 
is found. 
‘‘(c) DISPOSITION OF FINE.—Half of the fine shall go to the 
person injured by the violation and half to the United States 
Government.
‘‘CHAPTER 309—SUITS IN ADMIRALTY AGAINST THE 
UNITED STATES
‘‘Sec. 
‘‘30901.
Short title. 
‘‘30902.
Definition. 
‘‘30903.
Waiver of immunity. 
‘‘30904.
Exclusive remedy. 
‘‘30905.
Period for bringing action. 
‘‘30906.
Venue. 
‘‘30907.
Procedure for hearing and determination. 
‘‘30908.
Exemption from arrest or seizure. 
‘‘30909.
Security. 
‘‘30910.
Exoneration and limitation. 
‘‘30911.
Costs and interest. 
‘‘30912.
Arbitration, compromise, or settlement. 
‘‘30913.
Payment of judgment or settlement. 
‘‘30914.
Release of privately owned vessel after arrest or attachment. 
‘‘30915.
Seizures and other proceedings in foreign jurisdictions. 
‘‘30916.
Recovery by the United States for salvage services. 
‘‘30917.
Disposition of amounts recovered by the United States. 
‘‘30918.
Reports.
‘‘§ 30901. Short title 
‘‘This chapter may be cited as the ‘Suits in Admiralty Act’. 
‘‘§ 30902. Definition 
‘‘In this chapter, the term ‘federally-owned corporation’ means 
a corporation in which the United States owns all the outstanding 
capital stock.
H. R. 1442—34
‘‘§ 30903. Waiver of immunity 
‘‘(a) IN GENERAL.—In a case in which, if a vessel were privately 
owned or operated, or if cargo were privately owned or possessed, 
or if a private person or property were involved, a civil action 
in admiralty could be maintained, a civil action in admiralty in 
personam may be brought against the United States or a federally-
owned corporation. In a civil action in admiralty brought by the 
United States or a federally-owned corporation, an admiralty claim 
in personam may be filed or a setoff claimed against the United 
States or corporation. 
‘‘(b) NON-JURY.—A claim against the United States or a feder-
ally-owned corporation under this section shall be tried without 
a jury. 
‘‘§ 30904. Exclusive remedy 
‘‘If a remedy is provided by this chapter, it shall be exclusive 
of any other action arising out of the same subject matter against 
the officer, employee, or agent of the United States or the federally-
owned corporation whose act or omission gave rise to the claim. 
‘‘§ 30905. Period for bringing action 
‘‘A civil action under this chapter must be brought within 
2 years after the cause of action arose. 
‘‘§ 30906. Venue 
‘‘(a) IN GENERAL.—A civil action under this chapter shall be 
brought in the district court of the United States for the district 
in which—
‘‘(1) any plaintiff resides or has its principal place of busi-
ness; or 
‘‘(2) the vessel or cargo is found. 
‘‘(b) TRANSFER.—On a motion by a party, the court may transfer 
the action to any other district court of the United States. 
‘‘§ 30907. Procedure for hearing and determination 
‘‘(a) IN GENERAL.—A civil action under this chapter shall pro-
ceed and be heard and determined according to the principles 
of law and the rules of practice applicable in like cases between 
private parties. 
‘‘(b) IN REM.—
‘‘(1) REQUIREMENTS.—The action may proceed according 
to the principles of an action in rem if—
‘‘(A) the plaintiff elects in the complaint; and 
‘‘(B) it appears that an action in rem could have been 
maintained had the vessel or cargo been privately owned 
and possessed. 
‘‘(2) EFFECT ON RELIEF IN PERSONAM.—An election under 
paragraph (1) does not prevent the plaintiff from seeking relief 
in personam in the same action. 
‘‘§ 30908. Exemption from arrest or seizure 
‘‘The following are not subject to arrest or seizure by judicial 
process in the United States: 
‘‘(1) A vessel owned by, possessed by, or operated by or 
for the United States or a federally-owned corporation. 
‘‘(2) Cargo owned or possessed by the United States or 
a federally-owned corporation.
H. R. 1442—35
‘‘§ 30909. Security 
‘‘Neither the United States nor a federally-owned corporation 
may be required to give a bond or admiralty stipulation in a 
civil action under this chapter. 
‘‘§ 30910. Exoneration and limitation 
‘‘The United States is entitled to the exemptions from and 
limitations of liability provided by law to an owner, charterer, 
operator, or agent of a vessel. 
‘‘§ 30911. Costs and interest 
‘‘(a) IN GENERAL.—A judgment against the United States or 
a federally-owned corporation under this chapter may include costs 
and interest at the rate of 4 percent per year until satisfied. Interest 
shall run as ordered by the court, except that interest is not allow-
able for the period before the action is filed. 
‘‘(b) CONTRACT PROVIDING
FOR INTEREST.—Notwithstanding 
subsection (a), if the claim is based on a contract providing for 
interest, interest may be awarded at the rate and for the period 
provided in the contract. 
‘‘§ 30912. Arbitration, compromise, or settlement 
‘‘The Secretary of a department of the United States Govern-
ment, or the board of trustees of a federally-owned corporation, 
may arbitrate, compromise, or settle a claim under this chapter. 
‘‘§ 30913. Payment of judgment or settlement 
‘‘(a) IN GENERAL.—The proper accounting officer of the United 
States shall pay a final judgment, arbitration award, or settlement 
under this chapter on presentation of an authenticated copy. 
‘‘(b) SOURCE OF PAYMENT.—Payment shall be made from an 
appropriation or fund available specifically for the purpose. If no 
appropriation or fund is specifically available, there is hereby appro-
priated, out of money in the Treasury not otherwise appropriated, 
an amount sufficient to pay the judgment, award, or settlement. 
‘‘§ 30914. Release of privately owned vessel after arrest or 
attachment 
‘‘If a privately owned vessel not in the possession of the United 
States or a federally-owned corporation is arrested or attached 
in a civil action arising or alleged to have arisen from prior owner-
ship, possession, or operation by the United States or corporation, 
the vessel shall be released without bond or stipulation on a state-
ment by the United States, through the Attorney General or other 
authorized law officer, that the United States is interested in the 
action, desires release of the vessel, and assumes liability for the 
satisfaction of any judgment obtained by the plaintiff. After the 
vessel is released, the action shall proceed against the United 
States in accordance with this chapter. 
‘‘§ 30915. Seizures and other proceedings in foreign jurisdic-
tions 
‘‘(a) IN GENERAL.—If a vessel or cargo described in section 
30908 or 30914 of this title is arrested, attached, or otherwise 
seized by judicial process in a foreign country, or if an action 
is brought in a court of a foreign country against the master 
of such a vessel for a claim arising from the ownership, possession,
H. R. 1442—36
or operation of the vessel, or the ownership, possession, or carriage 
of such cargo, the Secretary of State, on request of the Attorney 
General or another officer authorized by the Attorney General, 
may direct the United States consul residing at or nearest the 
place at which the action was brought—
‘‘(1) to claim the vessel or cargo as immune from arrest, 
attachment, or other seizure, and to execute an agreement, 
stipulation, bond, or undertaking, for the United States or 
federally-owned corporation, for the release of the vessel or 
cargo and the prosecution of any appeal; or 
‘‘(2) if an action has been brought against the master 
of such a vessel, to enter the appearance of the United States 
or corporation and to pledge the credit of the United States 
or corporation to the payment of any judgment and costs in 
the action. 
‘‘(b) ARRANGING BOND OR STIPULATION.—The Attorney General 
may—
‘‘(1) arrange with a bank, surety company, or other person, 
whether in the United States or a foreign country, to execute 
a bond or stipulation; and 
‘‘(2) pledge the credit of the United States to secure the 
bond or stipulation. 
‘‘(c) PAYMENT
OF
JUDGMENT.—The appropriate accounting 
officer of the United States or corporation may pay a judgment 
in an action described in subsection (a) on presentation of a copy 
of the judgment if certified by the clerk of the court and authenti-
cated by—
‘‘(1) the certificate and seal of the United States consul 
claiming the vessel or cargo, or by the consul’s successor; and 
‘‘(2) the certificate of the Secretary as to the official capacity 
of the consul. 
‘‘(d) RIGHT TO CLAIM IMMUNITY NOT AFFECTED.—This section 
does not affect the right of the United States to claim immunity 
of a vessel or cargo from foreign jurisdiction. 
‘‘§ 30916. Recovery by the United States for salvage services 
‘‘(a) CIVIL ACTION.—The United States, and the crew of a mer-
chant vessel owned or operated by the United States, or a federally-
owned corporation, may bring a civil action to recover for salvage 
services provided by the vessel and crew. 
‘‘(b) DEPOSIT OF AMOUNTS RECOVERED.—Any amount recovered 
under this section by the United States for its own benefit, and 
not for the benefit of the crew, shall be deposited in the Treasury 
to the credit of the department of the United States Government, 
or the corporation, having control of the possession or operation 
of the vessel. 
‘‘§ 30917. Disposition of amounts recovered by the United 
States 
‘‘Amounts recovered in a civil action brought by the United 
States on a claim arising from the ownership, possession, or oper-
ation of a merchant vessel, or the ownership, possession, or carriage 
of cargo, shall be deposited in the Treasury to the credit of the 
department of the United States Government, or the federally-
owned corporation, having control of the vessel or cargo, for 
reimbursement of the appropriation, insurance fund, or other fund
H. R. 1442—37
from which the compensation for which the judgment was recovered 
was or will be paid. 
‘‘§ 30918. Reports 
‘‘The Secretary of each department of the United States Govern-
ment, and the board of trustees of each federally-owned corporation, 
shall report to Congress at each session thereof all arbitration 
awards and settlements agreed to under this chapter since the 
previous session, for which the time to appeal has expired or been 
waived.
‘‘CHAPTER 311—SUITS INVOLVING PUBLIC VESSELS
‘‘Sec. 
‘‘31101.
Short title. 
‘‘31102.
Waiver of immunity. 
‘‘31103.
Applicable procedure. 
‘‘31104.
Venue. 
‘‘31105.
Security when counterclaim filed. 
‘‘31106.
Exoneration and limitation. 
‘‘31107.
Interest. 
‘‘31108.
Arbitration, compromise, or settlement. 
‘‘31109.
Payment of judgment or settlement. 
‘‘31110.
Subpoenas to officers or members of crew. 
‘‘31111.
Claims by nationals of foreign countries. 
‘‘31112.
Lien not recognized or created. 
‘‘31113.
Reports.
‘‘§ 31101. Short title 
‘‘This chapter may be cited as the ‘Public Vessels Act’. 
‘‘§ 31102. Waiver of immunity 
‘‘(a) IN GENERAL.—A civil action in personam in admiralty 
may be brought, or an impleader filed, against the United States 
for—
‘‘(1) damages caused by a public vessel of the United States; 
or 
‘‘(2) compensation for towage and salvage services, 
including contract salvage, rendered to a public vessel of the 
United States. 
‘‘(b) COUNTERCLAIM OR SETOFF.—If the United States brings 
a civil action in admiralty for damages caused by a privately owned 
vessel, the owner of the vessel, or the successor in interest, may 
file a counterclaim in personam, or claim a setoff, against the 
United States for damages arising out of the same subject matter. 
‘‘§ 31103. Applicable procedure 
‘‘A civil action under this chapter is subject to the provisions 
of chapter 309 of this title except to the extent inconsistent with 
this chapter. 
‘‘§ 31104. Venue 
‘‘(a) IN GENERAL.—A civil action under this chapter shall be 
brought in the district court of the United States for the district 
in which the vessel or cargo is found within the United States. 
‘‘(b) VESSEL OR CARGO OUTSIDE TERRITORIAL WATERS.—If the 
vessel or cargo is outside the territorial waters of the United 
States—
‘‘(1) the action shall be brought in the district court of 
the United States for any district in which any plaintiff resides 
or has an office for the transaction of business; or
H. R. 1442—38
‘‘(2) if no plaintiff resides or has an office for the transaction 
of business in the United States, the action may be brought 
in the district court of the United States for any district. 
‘‘§ 31105. Security when counterclaim filed 
‘‘If a counterclaim is filed for a cause of action for which 
the original action is filed under this chapter, the respondent to 
the counterclaim shall give security in the usual amount and form 
to respond to the counterclaim, unless the court for cause shown 
orders otherwise. The proceedings in the original action shall be 
stayed until the security is given. 
‘‘§ 31106. Exoneration and limitation 
‘‘The United States is entitled to the exemptions from and 
limitations of liability provided by law to an owner, charterer, 
operator, or agent of a vessel. 
‘‘§ 31107. Interest 
‘‘A judgment in a civil action under this chapter may not 
include interest for the period before the judgment is issued unless 
the claim is based on a contract providing for interest. 
‘‘§ 31108. Arbitration, compromise, or settlement 
‘‘The Attorney General may arbitrate, compromise, or settle 
a claim under this chapter if a civil action based on the claim 
has been commenced. 
‘‘§ 31109. Payment of judgment or settlement 
‘‘The proper accounting officer of the United States shall pay 
a final judgment, arbitration award, or settlement under this 
chapter on presentation of an authenticated copy. Payment shall 
be made from any money in the Treasury appropriated for the 
purpose. 
‘‘§ 31110. Subpoenas to officers or members of crew 
‘‘An officer or member of the crew of a public vessel may 
not be subpoenaed in a civil action under this chapter without 
the consent of—
‘‘(1) the Secretary of the department or the head of the 
independent establishment having control of the vessel at the 
time the cause of action arose; or 
‘‘(2) the master or commanding officer of the vessel at 
the time the subpoena is issued. 
‘‘§ 31111. Claims by nationals of foreign countries 
‘‘A national of a foreign country may not maintain a civil 
action under this chapter unless it appears to the satisfaction 
of the court in which the action is brought that the government 
of that country, in similar circumstances, allows nationals of the 
United States to sue in its courts. 
‘‘§ 31112. Lien not recognized or created 
‘‘This chapter shall not be construed as recognizing the exist-
ence of or as creating a lien against a public vessel of the United 
States.
H. R. 1442—39
‘‘§ 31113. Reports 
‘‘The Attorney General shall report to Congress at each session 
thereof all claims settled under this chapter.’’.
SEC. 7. SUBTITLE IV OF TITLE 46. 
Title 46, United States Code, is amended by inserting after 
subtitle III the following:
‘‘Subtitle IV—Regulation of Ocean Shipping 
‘‘PART A—OCEAN SHIPPING
‘‘Chapter 
Sec. 
‘‘401. General ....................................................................................................... 40101
‘‘403. Agreements ............................................................................................... 40301
‘‘405. Tariffs, Service Contracts, Refunds, and Waivers .......................... 40501
‘‘407. Controlled Carriers ................................................................................ 40701
‘‘409. Ocean Transportation Intermediaries ............................................... 40901
‘‘411. Prohibitions and Penalties ................................................................... 41101
‘‘413. Enforcement ............................................................................................. 41301
‘‘PART B—ACTIONS TO ADDRESS FOREIGN PRACTICES
‘‘421. Regulations Affecting Shipping in Foreign Trade ......................... 42101
‘‘423. Foreign Shipping Practices .................................................................. 42301
‘‘PART C—MISCELLANEOUS
‘‘441. Evidence of Financial Responsibility for Passenger Transpor-
tation.
44101
‘‘PART A—OCEAN SHIPPING 
‘‘CHAPTER 401—GENERAL
‘‘Sec. 
‘‘40101.
Purposes. 
‘‘40102.
Definitions. 
‘‘40103.
Administrative exemptions. 
‘‘40104.
Reports filed with the Commission.
‘‘§ 40101. Purposes 
‘‘The purposes of this part are to—
‘‘(1) establish a nondiscriminatory regulatory process for 
the common carriage of goods by water in the foreign commerce 
of the United States with a minimum of government interven-
tion and regulatory costs; 
‘‘(2) provide an efficient and economic transportation 
system in the ocean commerce of the United States that is, 
insofar as possible, in harmony with, and responsive to, inter-
national shipping practices; 
‘‘(3) encourage the development of an economically sound 
and efficient liner fleet of vessels of the United States capable 
of meeting national security needs; and 
‘‘(4) promote the growth and development of United States 
exports through competitive and efficient ocean transportation 
and by placing a greater reliance on the marketplace. 
‘‘§ 40102. Definitions 
‘‘In this part: 
‘‘(1) AGREEMENT.—The term ‘agreement’—
H. R. 1442—40
‘‘(A) means a written or oral understanding, arrange-
ment, or association, and any modification or cancellation 
thereof; but 
‘‘(B) does not include a maritime labor agreement. 
‘‘(2) ANTITRUST LAWS.—The term ‘antitrust laws’ means—
‘‘(A) the Sherman Act (15 U.S.C. 1 et seq.); 
‘‘(B) sections 73 and 74 of the Wilson Tariff Act (15 
U.S.C. 8, 9); 
‘‘(C) the Clayton Act (15 U.S.C. 12 et seq.); 
‘‘(D) the Act of June 19, 1936 (15 U.S.C. 13, 13a, 
13b, 21a); 
‘‘(E) the Federal Trade Commission Act (15 U.S.C. 
41 et seq.); 
‘‘(F) the Antitrust Civil Process Act (15 U.S.C. 1311 
et seq.); and 
‘‘(G) Acts supplementary to those Acts. 
‘‘(3) ASSESSMENT
AGREEMENT.—The term ‘assessment 
agreement’ means an agreement, whether part of a collective 
bargaining agreement or negotiated separately, to the extent 
the agreement provides for the funding of collectively bargained 
fringe-benefit obligations on other than a uniform worker-hour 
basis, regardless of the cargo handled or type of vessel or 
equipment used. 
‘‘(4) BULK CARGO.—The term ‘bulk cargo’ means cargo that 
is loaded and carried in bulk without mark or count. 
‘‘(5) CHEMICAL PARCEL-TANKER.—The term ‘chemical parcel-
tanker’ means a vessel that has—
‘‘(A) a cargo-carrying capability consisting of individual 
cargo tanks for bulk chemicals that—
‘‘(i) are a permanent part of the vessel; and 
‘‘(ii) have segregation capability with piping sys-
tems to permit simultaneous carriage of several bulk 
chemical cargoes with minimum risk of cross-contami-
nation; and 
‘‘(B) a valid certificate of fitness under the Inter-
national Maritime Organization Code for the Construction 
and Equipment of Ships Carrying Dangerous Chemicals 
in Bulk. 
‘‘(6) COMMON CARRIER.—The term ‘common carrier’—
‘‘(A) means a person that—
‘‘(i) holds itself out to the general public to provide 
transportation by water of passengers or cargo between 
the United States and a foreign country for compensa-
tion; 
‘‘(ii) assumes responsibility for the transportation 
from the port or point of receipt to the port or point 
of destination; and 
‘‘(iii) uses, for all or part of that transportation, 
a vessel operating on the high seas or the Great Lakes 
between a port in the United States and a port in 
a foreign country; but 
‘‘(B) does not include a carrier engaged in ocean 
transportation by ferry boat, ocean tramp, or chemical 
parcel-tanker, or by vessel when primarily engaged in the 
carriage of perishable agricultural commodities—
H. R. 1442—41
‘‘(i) if the carrier and the owner of those commod-
ities are wholly-owned, directly or indirectly, by a per-
son primarily engaged in the marketing and distribu-
tion of those commodities; and 
‘‘(ii) only with respect to the carriage of those 
commodities. 
‘‘(7) CONFERENCE.—The term ‘conference’—
‘‘(A) means an association of ocean common carriers 
permitted, pursuant to an approved or effective agreement, 
to engage in concerted activity and to use a common tariff; 
but 
‘‘(B) does not include a joint service, consortium, 
pooling, sailing, or transshipment agreement. 
‘‘(8) CONTROLLED CARRIER.—The term ‘controlled carrier’ 
means an ocean common carrier that is, or whose operating 
assets are, directly or indirectly, owned or controlled by a 
government, with ownership or control by a government being 
deemed to exist for a carrier if—
‘‘(A) a majority of the interest in the carrier is owned 
or controlled in any manner by that government, an agency 
of that government, or a public or private person controlled 
by that government; or 
‘‘(B) that government has the right to appoint or dis-
approve the appointment of a majority of the directors, 
the chief operating officer, or the chief executive officer 
of the carrier. 
‘‘(9) DEFERRED REBATE.—The term ‘deferred rebate’ means 
a return by a common carrier of any freight money to a shipper, 
where the return is—
‘‘(A) consideration for the shipper giving all or any 
portion of its shipments to that or any other common 
carrier over a fixed period of time; 
‘‘(B) deferred beyond the completion of the service for 
which it was paid; and 
‘‘(C) made only if the shipper has agreed to make 
a further shipment with that or any other common carrier. 
‘‘(10) FOREST
PRODUCTS.—The term ‘forest products’ 
includes lumber in bundles, rough timber, ties, poles, piling, 
laminated beams, bundled siding, bundled plywood, bundled 
core stock or veneers, bundled particle or fiber boards, bundled 
hardwood, wood pulp in rolls, wood pulp in unitized bales, 
and paper and paper board in rolls or in pallet or skid-sized 
sheets. 
‘‘(11) INLAND DIVISION.—The term ‘inland division’ means 
the amount paid by a common carrier to an inland carrier 
for the inland portion of through transportation offered to the 
public by the common carrier. 
‘‘(12) INLAND PORTION.—The term ‘inland portion’ means 
the charge to the public by a common carrier for the non-
ocean portion of through transportation. 
‘‘(13) LOYALTY
CONTRACT.—The term ‘loyalty contract’ 
means a contract with an ocean common carrier or agreement 
providing for—
‘‘(A) a shipper to obtain lower rates by committing 
all or a fixed portion of its cargo to that carrier or agree-
ment; and 
‘‘(B) a deferred rebate arrangement.
H. R. 1442—42
‘‘(14) MARINE TERMINAL OPERATOR.—The term ‘marine ter-
minal operator’ means a person engaged in the United States 
in the business of providing wharfage, dock, warehouse, or 
other terminal facilities in connection with a common carrier, 
or in connection with a common carrier and a water carrier 
subject to subchapter II of chapter 135 of title 49. 
‘‘(15) MARITIME LABOR AGREEMENT.—The term ‘maritime 
labor agreement’—
‘‘(A) means—
‘‘(i) a collective bargaining agreement between an 
employer subject to this part, or a group of such 
employers, and a labor organization representing 
employees in the maritime or stevedoring industry; 
‘‘(ii) an agreement preparatory to such a collective 
bargaining agreement among members of a multi-
employer bargaining group; or 
‘‘(iii) an agreement specifically implementing provi-
sions of such a collective bargaining agreement or pro-
viding for the formation, financing, or administration 
of a multi-employer bargaining group; but 
‘‘(B) does not include an assessment agreement. 
‘‘(16) NON-VESSEL-OPERATING COMMON CARRIER.—The term 
‘non-vessel-operating common carrier’ means a common carrier 
that—
‘‘(A) does not operate the vessels by which the ocean 
transportation is provided; and 
‘‘(B) is a shipper in its relationship with an ocean 
common carrier. 
‘‘(17) OCEAN COMMON CARRIER.—The term ‘ocean common 
carrier’ means a vessel-operating common carrier. 
‘‘(18) OCEAN FREIGHT FORWARDER.—The term ‘ocean freight 
forwarder’ means a person that—
‘‘(A) in the United States, dispatches shipments from 
the United States via a common carrier and books or 
otherwise arranges space for those shipments on behalf 
of shippers; and 
‘‘(B) processes the documentation or performs related 
activities incident to those shipments. 
‘‘(19) OCEAN
TRANSPORTATION
INTERMEDIARY.—The term 
‘ocean transportation intermediary’ means an ocean freight for-
warder or a non-vessel-operating common carrier. 
‘‘(20) SERVICE
CONTRACT.—The term ‘service contract’ 
means a written contract, other than a bill of lading or receipt, 
between one or more shippers, on the one hand, and an indi-
vidual ocean common carrier or an agreement between or 
among ocean common carriers, on the other, in which—
‘‘(A) the shipper or shippers commit to providing a 
certain volume or portion of cargo over a fixed time period; 
and 
‘‘(B) the ocean common carrier or the agreement com-
mits to a certain rate or rate schedule and a defined service 
level, such as assured space, transit time, port rotation, 
or similar service features. 
‘‘(21) SHIPMENT.—The term ‘shipment’ means all of the 
cargo carried under the terms of a single bill of lading. 
‘‘(22) SHIPPER.—The term ‘shipper’ means—
‘‘(A) a cargo owner;
H. R. 1442—43
‘‘(B) the person for whose account the ocean transpor-
tation of cargo is provided; 
‘‘(C) the person to whom delivery is to be made; 
‘‘(D) a shippers’ association; or 
‘‘(E) a non-vessel-operating common carrier that 
accepts responsibility for payment of all charges applicable 
under the tariff or service contract. 
‘‘(23) SHIPPERS’ ASSOCIATION.—The term ‘shippers’ associa-
tion’ means a group of shippers that consolidates or distributes 
freight on a nonprofit basis for the members of the group 
to obtain carload, truckload, or other volume rates or service 
contracts. 
‘‘(24) THROUGH RATE.—The term ‘through rate’ means the 
single amount charged by a common carrier in connection with 
through transportation. 
‘‘(25) THROUGH
TRANSPORTATION.—The term ‘through 
transportation’ means continuous transportation between origin 
and destination for which a through rate is assessed and which 
is offered or performed by one or more carriers, at least one 
of which is a common carrier, between a United States port 
or point and a foreign port or point. 
‘‘§ 40103. Administrative exemptions 
‘‘(a) IN
GENERAL.—The Federal Maritime Commission, on 
application or its own motion, may by order or regulation exempt 
for the future any class of agreements between persons subject 
to this part or any specified activity of those persons from any 
requirement of this part if the Commission finds that the exemption 
will not result in substantial reduction in competition or be detri-
mental to commerce. The Commission may attach conditions to 
an exemption and may, by order, revoke an exemption. 
‘‘(b) OPPORTUNITY FOR HEARING.—An order or regulation of 
exemption or revocation of an exemption may be issued only if 
the Commission has provided an opportunity for a hearing to 
interested persons and departments and agencies of the United 
States Government. 
‘‘§ 40104. Reports filed with the Commission 
‘‘(a) IN GENERAL.—The Federal Maritime Commission may 
require a common carrier or an officer, receiver, trustee, lessee, 
agent, or employee of the carrier to file with the Commission 
a periodical or special report, an account, record, rate, or charge, 
or a memorandum of facts and transactions related to the business 
of the carrier. The report, account, record, rate, charge, or memo-
randum shall be made under oath if the Commission requires, 
and shall be filed in the form and within the time prescribed 
by the Commission. 
‘‘(b) CONFERENCE MINUTES.—Conference minutes required to 
be filed with the Commission under this section may not be released 
to third parties or published by the Commission. 
‘‘CHAPTER 403—AGREEMENTS
‘‘Sec. 
‘‘40301.
Application. 
‘‘40302.
Filing requirements. 
‘‘40303.
Content requirements. 
‘‘40304.
Commission action.