II 
108TH CONGRESS 
2D SESSION 
H. R. 4319 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 29, 2004 
Received 
AN ACT 
To complete the codification of title 46, United States Code, 
‘‘Shipping’’, as positive law. 
Be it enacted by the Senate and House of Representatives of the United 
States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Title 46 Codification 
Act of 2004’’.
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(b) TABLE OF CONTENTS.—The table of contents for this Act is as fol-
lows: 
Sec. 1.
Short title; table of contents. 
Sec. 2.
Title analysis. 
Sec. 3.
Subtitle I of title 46. 
Sec. 4.
Subtitle II of title 46. 
Sec. 5.
Subtitle III of title 46. 
Sec. 6.
Subtitle IV of title 46. 
Sec. 7.
Subtitle V of title 46. 
Sec. 8.
Subtitle VI of title 46. 
Sec. 9.
Subtitle VII of title 46. 
Sec. 10.
Subtitle VIII of title 46. 
Sec. 11.
Maritime Administration. 
Sec. 12.
Amendments relating to Maritime Security Act of 2003. 
Sec. 13.
Amendments to partially restated provisions. 
Sec. 14.
Additional amendments to title 46. 
Sec. 15.
Conforming amendments to other laws. 
Sec. 16.
Legislative construction and transitional provisions. 
Sec. 17.
Repeals. 
Sec. 18.
Effective date. 
SEC. 2. TITLE ANALYSIS. 
The title analysis of title 46, United States Code, is amended to read as 
follows: 
‘‘Subtitle 
Sec. 
‘‘I. GENERAL .....................................................................................................
101 
‘‘II. VESSELS AND SEAMEN ........................................................................
2101 
‘‘III. MARITIME LIABILITY ...........................................................................
30101 
‘‘IV. REGULATION OF OCEAN SHIPPING ..............................................
40101 
‘‘V. MERCHANT MARINE ..............................................................................
50101 
‘‘VI. CLEARANCE, TONNAGE TAXES, AND DUTIES ..........................
60101 
‘‘VII. SECURITY AND DRUG ENFORCEMENT ........................................
70101 
‘‘VIII. MISCELLANEOUS ....................................................................................
80101’’. 
SEC. 3. SUBTITLE I OF TITLE 46. 
Title 46, United States Code, is amended by inserting after the title anal-
ysis the following: 
‘‘Subtitle I—General 
‘‘Chapter 
Sec. 
‘‘1. Definitions ...................................................................................................
101 
‘‘3. Federal Maritime Commission .............................................................
301 
‘‘5. Other General Provisions ......................................................................
501 
‘‘CHAPTER 1—DEFINITIONS 
‘‘Sec. 
‘‘101.
Agency. 
‘‘102.
Barge. 
‘‘103.
Boundary Line. 
‘‘104.
Citizen of the United States. 
‘‘105.
Consular officer. 
‘‘106.
Documented vessel. 
‘‘107.
Exclusive economic zone. 
‘‘108.
Fisheries. 
‘‘109.
Foreign commerce or trade. 
‘‘110.
Foreign vessel. 
‘‘111.
Numbered vessel. 
‘‘112.
State. 
‘‘113.
Undocumented. 
‘‘114.
United States. 
‘‘115.
Vessel. 
‘‘116.
Vessel of the United States.
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‘‘§ 101. Agency 
‘‘In this title, the term ‘agency’ means a department, agency, or instru-
mentality of the United States Government. 
‘‘§ 102. Barge 
‘‘In this title, the term ‘barge’ means a non-self-propelled vessel. 
‘‘§ 103. Boundary Line 
‘‘In this title, the term ‘Boundary Line’ means a line established under 
section 2(b) of the Act of February 19, 1895 (33 U.S.C. 151). 
‘‘§ 104. Citizen of the United States 
‘‘In this title, the term ‘citizen of the United States’, when used in ref-
erence to a natural person, means an individual who is a national of the 
United States as defined in section 101(a)(22) of the Immigration and Na-
tionality Act (8 U.S.C. 1101(a)(22)). 
‘‘§ 105. Consular officer 
‘‘In this title, the term ‘consular officer’ means an officer or employee of 
the United States Government designated under regulations to issue visas. 
‘‘§ 106. Documented vessel 
‘‘In this title, the term ‘documented vessel’ means a vessel for which a 
certificate of documentation has been issued under chapter 121 of this title. 
‘‘§ 107. Exclusive economic zone 
‘‘In this title, the term ‘exclusive economic zone’ means the zone estab-
lished by Presidential Proclamation 5030 of March 10, 1983 (16 U.S.C. 
1453 note). 
‘‘§ 108. Fisheries 
‘‘In this title, the term ‘fisheries’ includes processing, storing, trans-
porting (except in foreign commerce), planting, cultivating, catching, taking, 
or harvesting fish, shellfish, marine animals, pearls, shells, or marine vege-
tation in the navigable waters of the United States or in the exclusive eco-
nomic zone. 
‘‘§ 109. Foreign commerce or trade 
‘‘(a) IN GENERAL.—In this title, the terms ‘foreign commerce’ and ‘for-
eign trade’ mean commerce or trade between a place in the United States 
and a place in a foreign country. 
‘‘(b) CAPITAL CONSTRUCTION FUNDS AND CONSTRUCTION-DIFFEREN-
TIAL SUBSIDIES.—In the context of capital construction funds under chap-
ter 535 of this title, and in the context of construction-differential subsidies 
under title V of the Merchant Marine Act, 1936, the terms ‘foreign com-
merce’ and ‘foreign trade’ also include, in the case of liquid and dry bulk 
cargo carrying services, trading between foreign ports in accordance with 
normal commercial bulk shipping practices in a manner that will permit 
United States-flag bulk vessels to compete freely with foreign-flag bulk ves-
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sels in their operation or competition for charters, subject to regulations 
prescribed by the Secretary of Transportation. 
‘‘§ 110. Foreign vessel 
‘‘In this title, the term ‘foreign vessel’ means a vessel of foreign registry 
or operated under the authority of a foreign country. 
‘‘§ 111. Numbered vessel 
‘‘In this title, the term ‘numbered vessel’ means a vessel for which a num-
ber has been issued under chapter 123 of this title. 
‘‘§ 112. State 
‘‘In this title, the term ‘State’ means a State of the United States, the 
District of Columbia, Guam, Puerto Rico, the Virgin Islands, American 
Samoa, the Northern Mariana Islands, and any other territory or possession 
of the United States. 
‘‘§ 113. Undocumented 
‘‘In this title, the term ‘undocumented’ means not having and not re-
quired to have a certificate of documentation issued under chapter 121 of 
this title. 
‘‘§ 114. United States 
‘‘In this title, the term ‘United States’, when used in a geographic sense, 
means the States of the United States, the District of Columbia, Guam, 
Puerto Rico, the Virgin Islands, American Samoa, the Northern Mariana 
Islands, and any other territory or possession of the United States. 
‘‘§ 115. Vessel 
‘‘In this title, the term ‘vessel’ has the meaning given that term in section 
3 of title 1. 
‘‘§ 116. Vessel of the United States 
‘‘In this title, the term ‘vessel of the United States’ means a vessel docu-
mented under chapter 121 of this title, numbered under chapter 123 of this 
title, or titled under the law of a State. 
‘‘CHAPTER 3—FEDERAL MARITIME COMMISSION 
‘‘Sec. 
‘‘301.
General organization. 
‘‘302.
Quorum. 
‘‘303.
Record of meetings and votes. 
‘‘304.
Delegation of authority. 
‘‘305.
Regulations. 
‘‘306.
Annual report. 
‘‘307.
Expenditures. 
‘‘§ 301. General organization 
‘‘(a) ORGANIZATION.—The Federal Maritime Commission is an inde-
pendent establishment of the United States Government. 
‘‘(b) COMMISSIONERS.— 
‘‘(1) COMPOSITION.—The Commission is composed of 5 Commis-
sioners, appointed by the President by and with the advice and consent
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of the Senate. Not more than 3 Commissioners may be appointed from 
the same political party. 
‘‘(2) TERMS.—The term of each Commissioner is 5 years, with each 
term beginning one year apart. An individual appointed to fill a va-
cancy is appointed only for the unexpired term of the individual being 
succeeded. A vacancy shall be filled in the same manner as the original 
appointment. When the term of a Commissioner ends, the Commis-
sioner may continue to serve until a successor is appointed and quali-
fied. 
‘‘(3) REMOVAL.—The President may remove a Commissioner for in-
efficiency, neglect of duty, or malfeasance in office. 
‘‘(c) CHAIRMAN.— 
‘‘(1) DESIGNATION.—The President shall designate one of the Com-
missioners as Chairman. 
‘‘(2) GENERAL AUTHORITY.—The Chairman is the chief executive 
and administrative officer of the Commission. In carrying out the du-
ties and powers of the Commission (other than under paragraph (3)), 
the Chairman is subject to the policies, regulatory decisions, findings, 
and determinations of the Commission. 
‘‘(3) PARTICULAR DUTIES.— 
‘‘(A) IN GENERAL.—The Chairman shall— 
‘‘(i) appoint and supervise officers and employees of the 
Commission; 
‘‘(ii) appoint the heads of major organizational units, but 
only after consultation with the other Commissioners; 
‘‘(iii) distribute the business of the Commission among per-
sonnel and organizational units; 
‘‘(iv) supervise the expenditure of money for administrative 
purposes; and 
‘‘(v) assign Commission personnel, including Commis-
sioners, to perform duties and powers delegated by the Com-
mission under section 304 of this title. 
‘‘(B) NONAPPLICATION.—Subparagraph (A) (other than clause 
(v)) does not apply to personnel employed regularly and full-time 
in the offices of Commissioners other than the Chairman. 
‘‘(4) DELEGATION.—The Chairman may designate officers and em-
ployees under the Chairman’s jurisdiction to perform duties and powers 
of the Chairman, subject to the Chairman’s supervision and direction. 
‘‘(d) SEAL.—The Commission shall have a seal which shall be judicially 
recognized.
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‘‘§ 302. Quorum 
‘‘A vacancy or vacancies in the membership of the Federal Maritime 
Commission do not impair the power of the Commission to execute its func-
tions. The affirmative vote of a majority of the Commissioners serving on 
the Commission is required to dispose of any matter before the Commission. 
‘‘§ 303. Record of meetings and votes 
‘‘The Federal Maritime Commission, through its secretary, shall keep a 
record of its meetings and the votes taken on any action, order, contract, 
or financial transaction of the Commission. 
‘‘§ 304. Delegation of authority 
‘‘(a) DELEGATION.—The Federal Maritime Commission, by published 
order or regulation, may delegate to a division of the Commission, an indi-
vidual Commissioner, an employee board, or an officer or employee of the 
Commission, any of its duties or powers, including those relating to hearing, 
determining, ordering, certifying, reporting, or otherwise acting on any mat-
ter. This subsection does not affect section 556(b) of title 5. 
‘‘(b) REVIEW.—The Commission may review any action taken under a 
delegation of authority under subsection (a). The review may be taken on 
the Commission’s own initiative or on the petition of a party to or an inter-
venor in the action, within the time and in the manner prescribed by the 
Commission. The vote of a majority of the Commission, less one member, 
is sufficient to bring an action before the Commission for review. 
‘‘(c) DEEMED ACTION OF COMMISSION.—If the Commission declines re-
view, or if review is not sought, within the time prescribed under subsection 
(b), the action taken under the delegation of authority is deemed to be the 
action of the Commission. 
‘‘§ 305. Regulations 
‘‘The Federal Maritime Commission may prescribe regulations to carry 
out its duties and powers. 
‘‘§ 306. Annual report 
‘‘(a) IN GENERAL.—Not later than April 1 of each year, the Federal 
Maritime Commission shall submit a report to Congress. The report shall 
include the results of its investigations, a summary of its transactions, the 
purposes for which all of its expenditures were made, and any recommenda-
tions for legislation. 
‘‘(b) REPORT ON FOREIGN LAWS AND PRACTICES.—The Commission 
shall include in its annual report to Congress— 
‘‘(1) a list of the 20 foreign countries that generated the largest vol-
ume of oceanborne liner cargo for the most recent calendar year in bi-
lateral trade with the United States;
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‘‘(2) an analysis of conditions described in section 42302(a) of this 
title being investigated or found to exist in foreign countries; 
‘‘(3) any actions being taken by the Commission to offset those con-
ditions; 
‘‘(4) any recommendations for additional legislation to offset those 
conditions; and 
‘‘(5) a list of petitions filed under section 42302(b) of this title that 
the Commission rejected and the reasons for each rejection. 
‘‘§ 307. Expenditures 
‘‘The Federal Maritime Commission may make such expenditures as are 
necessary in the performance of its functions from funds appropriated or 
otherwise made available to it, which appropriations are authorized. 
‘‘CHAPTER 5—OTHER GENERAL PROVISIONS 
‘‘Sec. 
‘‘501.
Waiver of navigation and vessel-inspection laws. 
‘‘502.
Cargo exempt from forfeiture. 
‘‘503.
Notice of seizure. 
‘‘504.
Remission of fees and penalties. 
‘‘505.
Penalty for violating regulation or order. 
‘‘§ 501. Waiver of navigation and vessel-inspection laws 
‘‘(a) ON REQUEST OF SECRETARY OF DEFENSE.—On request of the Sec-
retary of Defense, the head of an agency responsible for the administration 
of the navigation or vessel-inspection laws shall waive compliance with those 
laws to the extent the Secretary considers necessary in the interest of na-
tional defense. 
‘‘(b) BY HEAD OF AGENCY.—When the head of an agency responsible for 
the administration of the navigation or vessel-inspection laws considers it 
necessary in the interest of national defense, the individual may waive com-
pliance with those laws to the extent, in the manner, and on the terms the 
individual prescribes. 
‘‘(c) TERMINATION OF AUTHORITY.—The authority granted by this sec-
tion shall terminate at such time as the Congress by concurrent resolution 
or the President may designate. 
‘‘§ 502. Cargo exempt from forfeiture 
‘‘Cargo on a vessel is exempt from forfeiture under this title if— 
‘‘(1) the cargo is owned in good faith by a person not the owner, 
master, or crewmember of the vessel; and 
‘‘(2) the customs duties on the cargo have been paid or secured for 
payment as provided by law. 
‘‘§ 503. Notice of seizure 
‘‘When a forfeiture of a vessel or cargo accrues, the official of the United 
States Government required to give notice of the seizure of the vessel or 
cargo shall include in the notice, if they are known to that official, the name
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and the place of residence of the owner or consignee at the time of the sei-
zure. 
‘‘§ 504. Remission of fees and penalties 
‘‘Any part of a fee, tax, or penalty paid or a forfeiture incurred under 
a law or regulation relating to vessels or seamen may be remitted if— 
‘‘(1) application for the remission is made within one year after the 
date of the payment or forfeiture; and 
‘‘(2) it is found that the fee, tax, penalty, or forfeiture was improp-
erly or excessively imposed. 
‘‘§ 505. Penalty for violating regulation or order 
‘‘A person convicted of knowingly and willfully violating a regulation or 
order of the Federal Maritime Commission or the Secretary of Transpor-
tation under subtitle IV or V of this title, for which no penalty is expressly 
provided, shall be fined not more than $500. Each day of a continuing viola-
tion is a separate offense.’’. 
SEC. 4. SUBTITLE II OF TITLE 46. 
Chapter 121 of title 46, United States Code, is amended to read as fol-
lows: 
‘‘CHAPTER 121—DOCUMENTATION OF VESSELS 
‘‘SUBCHAPTER I—GENERAL 
‘‘Sec. 
‘‘12101.
Definitions. 
‘‘12102.
Vessels requiring documentation. 
‘‘12103.
General eligibility requirements. 
‘‘12104.
Applications for documentation. 
‘‘12105.
Issuance of documentation. 
‘‘12106.
Surrender of title and number. 
‘‘12107.
Wrecked vessels. 
‘‘SUBCHAPTER II—ENDORSEMENTS AND SPECIAL DOCUMENTATION 
‘‘12111.
Registry endorsement. 
‘‘12112.
Coastwise endorsement. 
‘‘12113.
Fishery endorsement. 
‘‘12114.
Recreational endorsement. 
‘‘12115.
Temporary endorsement for vessels procured outside the United States. 
‘‘12116.
Limited endorsements for Guam, American Samoa, and Northern Mariana Islands. 
‘‘12117.
Oil spill response vessels. 
‘‘12118.
Owners engaged primarily in manufacturing or mineral industry. 
‘‘12119.
Owners engaged primarily in leasing or financing transactions. 
‘‘12120.
Liquified gas tankers. 
‘‘12121.
Small passenger vessels and uninspected passenger vessels. 
‘‘SUBCHAPTER III—MISCELLANEOUS 
‘‘12131.
Command of documented vessels. 
‘‘12132.
Loss of coastwise trade privileges. 
‘‘12133.
Duty to carry certificate on vessel and allow examination. 
‘‘12134.
Evidentiary uses of documentation. 
‘‘12135.
Invalidation of certificates of documentation. 
‘‘12136.
Surrender of certificates of documentation. 
‘‘12137.
Recording of vessels built in the United States. 
‘‘12138.
List of documented vessels. 
‘‘12139.
Reports.
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‘‘SUBCHAPTER IV—PENALTIES 
‘‘12151.
Penalties. 
‘‘12152.
Denial or revocation of endorsement for non-payment of civil penalty. 
‘‘SUBCHAPTER I—GENERAL 
‘‘§ 12101. Definitions 
‘‘(a) REBUILT IN THE UNITED STATES.—In this chapter, a vessel is 
deemed to have been rebuilt in the United States only if the entire rebuild-
ing, including the construction of any major component of the hull or super-
structure, was done in the United States. 
‘‘(b) RELATED TERMS IN OTHER LAWS.—When the following terms are 
used in a law, regulation, document, ruling, or other official act referring 
to the documentation of a vessel, the following definitions apply: 
‘‘(1) REGISTRY ENDORSEMENT.—The terms ‘certificate of registry’, 
‘register’, and ‘registry’ mean a certificate of documentation with a reg-
istry endorsement issued under this chapter. 
‘‘(2) COASTWISE ENDORSEMENT.—The terms ‘license’, ‘enrollment 
and license’, ‘license for the coastwise (or coasting) trade’, and ‘enroll-
ment and license for the coastwise (or coasting) trade’ mean a certifi-
cate of documentation with a coastwise endorsement issued under this 
chapter. 
‘‘(3) YACHT.—The term ‘yacht’ means a recreational vessel even if 
not documented. 
‘‘§ 12102. Vessels requiring documentation 
‘‘(a) IN GENERAL.—Except as otherwise provided, a vessel may engage 
in a trade only if the vessel has been issued a certificate of documentation 
with an endorsement for that trade under this chapter. 
‘‘(b) VESSELS LESS THAN 5 NET TONS.—A vessel of less than 5 net tons 
may engage in a trade without being documented if the vessel otherwise sat-
isfies the requirements to engage in the particular trade. 
‘‘(c) BARGES.—A barge qualified to engage in the coastwise trade may 
engage in the coastwise trade, without being documented, on rivers, harbors, 
lakes (except the Great Lakes), canals, and inland waters. 
‘‘§ 12103. General eligibility requirements 
‘‘(a) IN GENERAL.—Except as otherwise provided, a certificate of docu-
mentation for a vessel may be issued under this chapter only if the vessel 
is— 
‘‘(1) wholly owned by one or more individuals or entities described 
in subsection (b); 
‘‘(2) at least 5 net tons as measured under part J of this subtitle; 
and 
‘‘(3) not documented under the laws of a foreign country.
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‘‘(b) ELIGIBLE OWNERS.—For purposes of subsection (a)(1), the fol-
lowing are eligible owners: 
‘‘(1) An individual who is a citizen of the United States. 
‘‘(2) An association, trust, joint venture, or other entity if— 
‘‘(A) each of its members is a citizen of the United States; and 
‘‘(B) it is capable of holding title to a vessel under the laws of 
the United States or a State. 
‘‘(3) A partnership if— 
‘‘(A) each general partner is a citizen of the United States; and 
‘‘(B) the controlling interest in the partnership is owned by citi-
zens of the United States. 
‘‘(4) A corporation if— 
‘‘(A) it is incorporated under the laws of the United States or 
a State; 
‘‘(B) its chief executive officer, by whatever title, and the chair-
man of its board of directors are citizens of the United States; and 
‘‘(C) no more of its directors are noncitizens than a minority 
of the number necessary to constitute a quorum. 
‘‘(5) The United States Government. 
‘‘(6) The government of a State. 
‘‘(c) TEMPORARY CERTIFICATES PRIOR TO MEASUREMENT.—Notwith-
standing subsection (a)(2), the Secretary may issue a temporary certificate 
of documentation for a vessel before it is measured. 
‘‘§ 12104. Applications for documentation 
‘‘(a) IN GENERAL.—An application for a certificate of documentation or 
endorsement under this chapter must be filed by the owner of the vessel. 
The application must be filed in the manner, be in the form, and contain 
the information prescribed by the Secretary. 
‘‘(b) APPLICANT’S IDENTIFYING INFORMATION.—The Secretary shall re-
quire the applicant to provide— 
‘‘(1) if the applicant is an individual, the individual’s social security 
number; or 
‘‘(2) if the applicant is an entity— 
‘‘(A) the entity’s taxpayer identification number; or 
‘‘(B) if the entity does not have a taxpayer identification num-
ber, the social security number of an individual who is a corporate 
officer, general partner, or individual trustee of the entity and who 
signs the application. 
‘‘§ 12105. Issuance of documentation 
‘‘(a) IN GENERAL.—Except as provided in section 12152 of this title, the 
Secretary, on receipt of a proper application, shall issue a certificate of doc-
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umentation or a temporary certificate of documentation for a vessel satis-
fying the requirements of section 12103 of this title. The certificate shall 
contain each endorsement under subchapter II of this chapter for which the 
owner applies and the vessel is eligible. 
‘‘(b) TEMPORARY CERTIFICATES
FOR RECREATIONAL VESSELS.—The 
Secretary may delegate, subject to the supervision and control of the Sec-
retary and under terms prescribed by regulation, to private entities deter-
mined and certified by the Secretary to be qualified, the authority to issue 
a temporary certificate of documentation for a recreational vessel eligible 
under section 12103 of this title. A temporary certificate issued under this 
subsection is valid for not more than 30 days. 
‘‘(c) INFORMATION TO BE INCLUDED IN CERTIFICATE.—A certificate of 
documentation shall— 
‘‘(1) identify and describe the vessel; 
‘‘(2) identify the owner of the vessel; and 
‘‘(3) contain additional information prescribed by the Secretary. 
‘‘(d) PROCEDURES TO ENSURE INTEGRITY AND ACCURACY.—The Sec-
retary shall prescribe procedures to ensure the integrity of, and the accuracy 
of information contained in, certificates of documentation. 
‘‘§ 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 cer-
tificate of title issued by a State for a documented vessel shall be surren-
dered as provided by regulations prescribed by the Secretary. 
‘‘(b) VESSELS COVERED
BY PREFERRED MORTGAGE.—The Secretary 
may approve the surrender under subsection (a) of a certificate 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 apprais-
ers to determine whether a vessel satisfies subsection (a)(2). The costs of 
the appraisal shall be paid by the owner of the vessel.
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‘‘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 quali-
fies 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 in-
cludes the affidavit of each trustee stating that the trustee is 
not aware of any reason involving a beneficiary 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 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 owner-
ship or operation of the vessel that may adversely affect the inter-
ests of the United States or in removing a trustee for a trust with-
out cause, either directly or indirectly through the control of an-
other person, the trust is not qualified under this paragraph un-
less the trust instrument provides that persons who are not citi-
zens 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
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States from holding more than 25 percent of the beneficial interest 
in a trust. 
‘‘(3) CITIZENSHIP OF PERSON CHARTERING VESSEL.—If a person 
chartering a vessel from a trust that qualifies under paragraph (2) is 
a citizen of the United States under section 50501 of this title, the ves-
sel is deemed to be owned by a citizen of the United States for pur-
poses of that section and related laws, except subtitle B of title VI of 
the Merchant Marine Act, 1936. 
‘‘§ 12112. Coastwise endorsement 
‘‘(a) REQUIREMENTS.—A coastwise endorsement may be issued for a ves-
sel 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 en-
gage 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 ownership 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 en-
gage in the fisheries. 
‘‘(b) AUTHORIZED ACTIVITY.— 
‘‘(1) IN GENERAL.—Subject to the laws of the United States regu-
lating the fisheries, a vessel for which a fishery endorsement is issued 
may engage in the fisheries.
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‘‘(2) USE BY PROHIBITED PERSONS.—A fishery endorsement is in-
valid 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 cit-
izen 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 fish-
ery 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 executive offi-
cer, a majority of the board of directors, any general partner, 
or any person serving in a management 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 activi-
ties under clause (A), or the exercise of rights under loan or mort-
gage covenants by a mortgagee eligible to be a preferred mort-
gagee 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 estab-
lished 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 en-
dorsement under the Federal law that was in effect on October 1,
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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; 
‘‘(B) is more than 750 gross registered tons as measured under 
chapter 145 of this title or 1,900 gross registered tons as meas-
ured 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 eli-
gible 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 Secretary that 
the regional fishery management council of jurisdiction established 
under section 302(a)(1) of the Magnuson-Stevens Fishery Con-
servation and Management Act (16 U.S.C. 1852(a)(1)) has rec-
ommended after October 21, 1998, and the Secretary of Com-
merce 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 Administra-
tion 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 citizenship 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 subsection shall 
conform to the extent practicable with the regulations 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
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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 sub-
section and subsections (c) and (d), and shall not be required to be no-
tarized. 
‘‘(3) TRANSFER OF OWNERSHIP.—Transfers of ownership and con-
trol of vessels subject to subsection (c) or (d), which are 100 feet or 
greater in registered length, shall be rigorously scrutinized for viola-
tions of those provisions, with particular attention given to— 
‘‘(A) leases, charters, mortgages, financing, and similar ar-
rangements; 
‘‘(B) the control of persons not eligible to own a vessel with a 
fishery endorsement under subsection (c) or (d), over the manage-
ment, sales, financing, or other operations of an entity; and 
‘‘(C) contracts involving the purchase over extended periods of 
time of all, or substantially all, of the living marine resources har-
vested by a fishing vessel. 
‘‘(f) VESSELS MEASURING LESS THAN 100 FEET.—The Secretary shall 
establish reasonable and necessary requirements to demonstrate 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 bur-
den on individuals who own and operate those vessels. 
‘‘(g) VESSELS PURCHASED THROUGH FISHING CAPACITY REDUCTION 
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 ves-
sel 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 transactions that require prior 
approval of an implementing agency, identify transactions that do not re-
quire prior agency approval, and to the extent practicable, minimize disrup-
tions to the commercial fishing industry, to the traditional financing ar-
rangements of that industry, and to the opportunity to form fishery co-
operatives.
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‘‘§ 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 recreational en-
dorsement 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 re-
quirements 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 applica-
ble customs 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 Secretary 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 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 Sec-
retary 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 surrendered 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
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‘‘(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 endorse-
ment 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 en-
gage 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 ves-
sel 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 cooperative 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 navigable waters of 
the United States or the exclusive economic zone; or 
‘‘(ii) training exercises to prepare to respond to such a dis-
charge. 
‘‘(b) DEEMED OWNED BY CITIZENS.—A vessel satisfying subsection (a) 
is deemed to be owned only by citizens of the United States under sections 
12103, 12132, and 50501 of this title. 
‘‘§ 12118. Owners engaged primarily in manufacturing or 
mineral industry 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BOWATERS CORPORATION.—The term ‘Bowaters corporation’ 
means a corporation that has filed a certificate under oath with the
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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 corporation are 
residents of the United States; 
‘‘(D) the corporation is engaged primarily in a manufacturing 
or mineral industry in the United States; 
‘‘(E) the total book value of the vessels owned by the corpora-
tion 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 oper-
ations. 
‘‘(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 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 corpora-
tion— 
‘‘(A) is incorporated under the laws of the United States or a 
State; and 
‘‘(B) has at least 50 percent of its voting stock controlled, di-
rectly or indirectly, by a Bowaters corporation or its parent. 
‘‘(b) DEEMED CITIZEN.—A Bowaters corporation is deemed to be a cit-
izen 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 documentation 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
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under section 14302 of this title as prescribed 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 
‘‘(B) the vessel and its owner and master are entitled to the 
same benefits and are subject to the same requirements and pen-
alties as if the vessel were otherwise documented or exempt from 
documentation under this chapter. 
‘‘(2) TRANSPORTATION OF PASSENGERS OR MERCHANDISE.—A ves-
sel documented under this section may transport passengers or mer-
chandise 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 prevailing 
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 chap-
ter 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 sec-
tion. When a corporation no longer satisfies those conditions, the corpora-
tion loses its status under this section and immediately shall surrender to 
the Secretary any documents issued to it based on that status. 
‘‘(f) PENALTIES.— 
‘‘(1) FALSIFYING MATERIAL FACT.—If a corporation knowingly fal-
sifies a material fact in a certificate filed under subsection (a), the ves-
sel (or its value) documented or operated under this section shall be 
forfeited. 
‘‘(2) TRANSPORTING
MERCHANDISE.—If a vessel transports mer-
chandise for hire in violation of this section, the merchandise shall be 
forfeited to the United States Government.
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‘‘(3) TRANSPORTING
PASSENGERS.—If a vessel transports pas-
sengers 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 Securi-
ties 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. 
‘‘(4) PASSIVE INVESTMENT.—The term ‘passive investment’ means 
an investment in which neither the investor nor any affiliate of the in-
vestor is involved in, or has the power to be involved in, the formula-
tion, 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 propri-
etary cargo’ means— 
‘‘(A) oil, petroleum products, petrochemicals, or liquefied nat-
ural gas cargo that is beneficially owned by the person that sub-
mits to the Secretary an application or annual certification under 
subsection (c)(3), or by an affiliate of that person, immediately be-
fore, during, or immediately after the cargo is carried in coastwise 
trade on a vessel owned by that person; 
‘‘(B) oil, petroleum products, petrochemicals, or liquefied nat-
ural 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
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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 bene-
ficially 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 lique-
fied natural gas cargo that is beneficially 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-pro-
pelled 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 liq-
uefied natural gas or unrefined petroleum beneficially owned 
by the owner of the vessel, or an affiliate of the owner, from 
Alaska to the continental 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. 
‘‘(b) REQUIREMENTS.—A coastwise endorsement may be issued for a ves-
sel if— 
‘‘(1) the vessel satisfies the requirements for a coastwise endorse-
ment, except for the ownership requirement otherwise applicable with-
out 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
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‘‘(4) the demise charter is for a period of at least 3 years or a short-
er period as may be prescribed by the Secretary. 
‘‘(c) OWNERSHIP CERTIFICATION.— 
‘‘(1) IN GENERAL.—A person meets the requirements of this sub-
section if the person transmits to the Secretary each year the certifi-
cation required by paragraph (2) or (3) with respect to a vessel. 
‘‘(2) INVESTMENT CERTIFICATION.—To meet the certification re-
quirement 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 movement or use of the vessel. 
‘‘(3) CERTAIN TANK VESSELS.— 
‘‘(A) IN GENERAL.—To meet the certification requirement 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 ex-
ceed 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 management 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 en-
dorsement is qualified proprietary cargo; 
‘‘(iv) any cargo other than qualified proprietary cargo car-
ried by all vessels owned by the person and its United States 
affiliates and documented with a coastwise endorsement con-
sists of oil, petroleum products, petrochemicals, or liquified 
natural gas; 
‘‘(v) no vessel owned by the person or any of its United 
States affiliates and documented with a coastwise endorse-
ment carries molten sulphur; and 
‘‘(vi) the person owned one or more vessels documented 
under this section as of August 9, 2004.
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‘‘(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 al-
ternative tonnage measured under section 14302 of this title 
as prescribed by the Secretary 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 amend-
ments to the charter shall be filed with the certification required by sub-
section (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 CHAR-
TER.—When a charter required by subsection (b)(3) is terminated for de-
fault by the charterer, the Secretary may continue the coastwise endorse-
ment for not more than 6 months on terms and conditions the Secretary 
may prescribe. 
‘‘(f) DEEMED OWNED BY CITIZENS.—A vessel satisfying the require-
ments 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 endorse-
ment 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 subsequently redocu-
mented under this chapter for operation under this section. 
‘‘§ 12121. Small passenger vessels and uninspected pas-
senger 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
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‘‘(B) if rebuilt, was rebuilt outside the United States at least 
3 years before the certificate requested under subsection (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 mean-
ing given those terms in section 2101 of this title. 
‘‘(b) ISSUANCE OF CERTIFICATE AND ENDORSEMENT.—Notwithstanding 
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 Transpor-
tation, after notice and an opportunity for public comment, determines that 
the employment of the vessel in the coastwise trade will not adversely af-
fect— 
‘‘(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 en-
dorsement issued under subsection (b) if the Secretary of Transpor-
tation, 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 statements 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 documented 
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.
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‘‘§ 12132. Loss of coastwise trade privileges 
‘‘A vessel having a lawful right to engage in the coastwise trade is perma-
nently prohibited from engaging in the coastwise trade if the vessel is— 
‘‘(1)(A) more than 200 gross tons as measured under chapter 143 
of this title; and 
‘‘(B) sold foreign or placed under foreign registry; or 
‘‘(2) rebuilt outside the United States. 
‘‘§ 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 car-
rying the certificate. 
‘‘(b) AVAILABILITY.—The owner or individual in charge of a vessel re-
quired 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. 
‘‘(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 purposes, 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 certificate is 
invalid if the vessel for which it is issued— 
‘‘(1) no longer meets the requirements of this chapter and regula-
tions prescribed under this chapter applicable to the certificate or en-
dorsement; 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 certifi-
cate with an invalid endorsement, shall be surrendered as provided by regu-
lations prescribed by the Secretary. 
‘‘(b) CONDITIONS FOR SURRENDER.—
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‘‘(1) VESSELS OVER 1,000 TONS.—The Secretary may condition ap-
proval of the surrender of the certificate of documentation for a vessel 
over 1,000 gross tons. 
‘‘(2) VESSELS COVERED BY MORTGAGE.—The Secretary may ap-
prove the surrender of the certificate of documentation of a vessel cov-
ered 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 re-
corded under section 31343(a) of this title. 
‘‘(c) CONTINUED APPLICATION OF CERTAIN LAWS.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection (a), until the certifi-
cate of documentation is surrendered with the approval of the Sec-
retary, 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 re-
corded before the date of invalidation and an assignment 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 Sec-
retary by regulation as a law to which the Secretary applies this 
subsection. 
‘‘(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 Secretary 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 indi-
cating 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 vessels that are docu-
mented under this chapter, are at least 200 feet in length, and have 
the capability to lay, maintain, or repair a submarine cable, without re-
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gard to whether a particular 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 inven-
tory— 
‘‘(A) the name, length, beam, depth, and other distinguishing 
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 re-
garding 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 coastwise 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 Secretary, 
if a vessel exceeding the tonnage specified in paragraph (2) and docu-
mented or last documented under the laws of the United States is re-
built outside the United States, the owner or master shall submit a re-
port 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. 
‘‘(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
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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 equip-
ment 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 documentation of the vessel; 
‘‘(2) a certificate of documentation is knowingly and fraudulently 
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 appropriate en-
dorsement; 
‘‘(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 com-
mand of a person not a citizen of the United States, except as author-
ized 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 addi-
tion 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 en-
gages 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 Sec-
retary, 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.’’.
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SEC. 5. 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 United States Government .............
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 incidents in wa-
ters of other countries. 
‘‘30106.
Time limit on bringing action. 
‘‘§ 30101. Extension of jurisdiction to cases of damage or in-
jury 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 Government 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 oper-
ating the vessel causing the injury or damage.
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‘‘§ 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. 
‘‘(b) NOT SUBJECT TO LIMITATION.—A liability imposed under this sec-
tion 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 judi-
cial 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 Conti-
nental 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 in-
cident giving rise to the action; 
‘‘(2) the incident occurred in the territorial waters or waters over-
laying the continental shelf of a country other than the United States; 
and
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‘‘(3) the individual suffering the injury or death was employed at the 
time of the incident by a person engaged in the exploration, develop-
ment, or production of offshore mineral 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 adapt-
ed primarily to carry oil in bulk in the cargo spaces. 
‘‘(c) NONAPPLICATION.—Subsection (b) does not apply if the individual 
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 in-
cident occurred; or 
‘‘(2) the country in which the individual suffering the injury or death 
maintained citizenship or residency at the time of the incident. 
‘‘§ 30106. Time limit on bringing action 
‘‘Except as otherwise provided by law, a civil action for damages for per-
sonal 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 a marine league from the shore 
of the United States, the personal representative of the decedent may bring 
a civil action in admiralty against the person or vessel responsible. The ac-
tion 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 compensa-
tion 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.
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‘‘§ 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 rep-
resentative of the decedent may be substituted as the plaintiff and the ac-
tion 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 for the amount for which recov-
ery is authorized. 
‘‘§ 30307. Commercial aviation accidents 
‘‘(a) DEFINITION.—In this section, the term ‘nonpecuniary damages’ 
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, ad-
ditional compensation is recoverable for nonpecuniary damages for wrongful 
death, but punitive damages are not recoverable. 
‘‘(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 regu-
lating the right to recover for death. 
‘‘(b) INTERNAL WATERS.—This chapter does not apply to the Great 
Lakes, waters within the territorial limits of a State, or navigable waters 
in the Panama Canal. 
‘‘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.
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‘‘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. 
‘‘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, sup-
plies, 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) ap-
plies 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), con-
tained 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, trinkets, watches, 
clocks, glass, china, coins, bills, securities, printings, 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 arising from any cause, on 
account of that ownership, without the privity or knowledge of the owner 
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) NONAPPLICATION.—This section does not apply to a claim for 
wages.
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‘‘§ 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 vessels, tank ves-
sels, 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 such that the portion avail-
able 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 ton-
nage 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 tonnage of 
a self-propelled vessel is the gross tonnage without deduction 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 li-
ability apply to claims for personal injury or death arising on distinct occa-
sions. 
‘‘(e) PRIVITY OR KNOWLEDGE.—In a claim for personal injury or death, 
the privity or knowledge of the master or managing agent, at or before the 
beginning of each voyage, is imputed to the owner. 
‘‘§ 30507. Apportionment of losses 
‘‘If the amount determined under sections 30505 and 30506 of this title 
is insufficient to pay all claimants, the claimants shall be paid in proportion 
to their respective losses. 
‘‘§ 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 vessels, tank ves-
sels, 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 coun-
try, 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.
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‘‘(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 prej-
udiced 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 pro-
vided 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, in-
competent, 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 ves-
sel transporting passengers between ports in the United States, or be-
tween 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 in-
jury 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. 
‘‘(2) VOIDNESS.—A provision described in paragraph (1) is void. 
‘‘(b) EMOTIONAL DISTRESS, MENTAL SUFFERING, AND PSYCHOLOGICAL 
INJURY.— 
‘‘(1) IN GENERAL.—Subsection (a) does not prohibit a provision in 
a contract or in ticket conditions of carriage with a passenger that re-
lieves an owner, master, manager, agent, operator, or crewmember of 
a vessel from liability for infliction of emotional distress, mental suf-
fering, or psychological injury so long as the provision does not limit 
such liability when the emotional distress, mental suffering, or psycho-
logical injury is—
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‘‘(A) the result of physical injury to the claimant caused by the 
negligence or fault of a crewmember or the owner, master, man-
ager, 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 oper-
ator; or 
‘‘(C) intentionally inflicted by a crewmember or the owner, mas-
ter, 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 
‘‘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 med-
ical malpractice with regard to a crewmember occurring at a shoreside facil-
ity, and to the extent the damages resulted from the conduct of any shore-
side 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 med-
ical 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 chap-
ter. 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 
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.
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‘‘(c) CESSATION OF OTHER ACTIONS.—When an action has been brought 
under this section and the owner has complied with subsection (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.
Civil 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) RELATION TO COGSA.—The relationship between this chapter and 
the Carriage of Goods By Sea Act shall be the same as the relationship that 
existed between the Act of February 13, 1893 (ch. 105, 27 Stat. 445) (com-
monly known as the Harter Act) and the Carriage of Goods By Sea Act, 
prior to the repeal of the Harter Act. 
‘‘(c) LIVE ANIMALS.—Sections 30703 and 30704 of this title do not 
apply to the carriage of live animals. 
‘‘§ 30703. Bills of lading 
‘‘(a) ISSUANCE.—A carrier shall issue to a shipper 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.
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‘‘§ 30704. Loading, stowage, custody, care, and delivery 
‘‘A carrier may not insert in a bill of lading or shipping document a pro-
vision relieving the carrier from liability for loss or damage arising from im-
proper loading, stowage, custody, care, or delivery. Any such provision is 
void. 
‘‘§ 30705. Seaworthiness 
‘‘(a) PROHIBITION.—A carrier may not insert in a bill of lading or ship-
ping 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. 
‘‘§ 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 aris-
ing 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. Civil penalty 
‘‘(a) IN GENERAL.—A carrier that violates this chapter is liable for a civil 
penalty of not more than $2,000. 
‘‘(b) LIEN.—The amount of the penalty and costs for the violation con-
stitute 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 PENALTY.—Half of the penalty shall be paid to the 
person injured by the violation and half to the United States Government. 
‘‘CHAPTER 309—SUITS IN ADMIRALTY AGAINST UNITED 
STATES GOVERNMENT 
‘‘Sec. 
‘‘30901.
Short title.
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‘‘30902.
Definition. 
‘‘30903.
Waiver of immunity. 
‘‘30904.
Exclusive remedy. 
‘‘30905.
Period for bringing action. 
‘‘30906.
Venue. 
‘‘30907.
Security. 
‘‘30908.
Procedure for hearing and determination. 
‘‘30909.
Exoneration and limitation. 
‘‘30910.
Costs and interest. 
‘‘30911.
Arbitration, compromise, or settlement. 
‘‘30912.
Payment of judgment or settlement. 
‘‘30913.
Exemption from arrest or seizure. 
‘‘30914.
Release of privately owned vessel after seizure. 
‘‘30915.
Seizures and other proceedings in foreign jurisdictions. 
‘‘30916.
Recovery by United States Government for salvage services. 
‘‘30917.
Disposition of amounts recovered by United States Government. 
‘‘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 corpora-
tion in which the United States Government owns all the outstanding cap-
ital stock. 
‘‘§ 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 main-
tained, a civil action in personam may be brought against the United States 
Government or a federally-owned corporation. In a civil action in admiralty 
brought by the Government or a federally-owned corporation, an admiralty 
claim in personam may be filed or a setoff claimed against the Government 
or corporation. 
‘‘(b) NON-JURY.—A claim against the Government or a federally-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 Government or the federally-owned corpora-
tion 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 business; or 
‘‘(2) the vessel or cargo is found.
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‘‘(b) TRANSFER.—On a motion by a party, the court may transfer the 
action to any other district court of the United States. 
‘‘§ 30907. Security 
‘‘Neither the United States Government nor a federally-owned corporation 
may be required to give a bond or admiralty stipulation in a civil action 
under this chapter. 
‘‘§ 30908. Procedure for hearing and determination 
‘‘(a) IN GENERAL.—A civil action under this chapter shall proceed 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 main-
tained had the vessel or cargo been privately owned and possessed. 
‘‘(2) EFFECT ON RELIEF IN PERSONAM.—An election under para-
graph (1) does not prevent the plaintiff from seeking relief in personam 
in the same action. 
‘‘§ 30909. Exoneration and limitation 
‘‘The United States Government is entitled to the exemptions from and 
limitations of liability provided by law to an owner, charterer, operator, or 
agent of a vessel. 
‘‘§ 30910. Costs and interest 
‘‘(a) IN GENERAL.—A judgment against the United States Government 
or a federally-owned corporation under this chapter may include costs and 
interest at the rate of 4 percent a year until satisfied. Interest shall run 
as ordered by the court, except that interest is not allowable 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. 
‘‘§ 30911. Arbitration, compromise, or settlement 
‘‘The Secretary of a department of the United States Government, or the 
board of trustees of a federally-owned corporation, may arbitrate, com-
promise, or settle a claim authorized by this chapter. 
‘‘§ 30912. Payment of judgment or settlement 
‘‘(a) IN GENERAL.—The proper accounting officer of the United States 
Government shall pay a final judgment, arbitration award, or settlement 
under this chapter on presentation of an authenticated copy.
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‘‘(b) SOURCE OF PAYMENT.—Payment shall be made from an appropria-
tion or fund available specifically for the purpose. If no appropriation or 
fund is specifically available, there is hereby appropriated, out of money in 
the Treasury not otherwise appropriated, an amount sufficient to pay the 
judgment, award, or settlement. 
‘‘§ 30913. 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 Government or a federally-owned corporation. 
‘‘(2) Cargo owned or possessed by the Government or a federally- 
owned corporation. 
‘‘§ 30914. Release of privately owned vessel after seizure 
‘‘If a privately owned vessel not in the possession of the United States 
Government or a federally-owned corporation is arrested or attached in a 
civil action arising or alleged to have arisen from prior ownership, posses-
sion, or operation by the Government or corporation, the vessel shall be re-
leased without bond or stipulation on a statement by the Government, 
through the Attorney General or other authorized law officer, that the Gov-
ernment is interested in the action, desires release of the vessel, and as-
sumes liability for the satisfaction of any judgment obtained by the plaintiff. 
After the vessel is released, the action shall proceed against the Government 
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 30913 or 
30914 of this title is arrested, attached, or otherwise seized by judicial proc-
ess 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, or operation of the vessel, or the ownership, posses-
sion, 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 un-
dertaking, for the United States Government or federally-owned cor-
poration, 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 ves-
sel, to enter the appearance of the Government or corporation and to
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pledge the credit of the Government 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 stipula-
tion; and 
‘‘(2) pledge the credit of the Government to secure the bond or stipu-
lation. 
‘‘(c) PAYMENT OF JUDGMENT.—The appropriate accounting officer of the 
Government 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 authenticated 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 Government to claim immunity of a vessel or 
cargo from foreign jurisdiction. 
‘‘§ 30916. Recovery by United States Government for salvage 
services 
‘‘(a) CIVIL ACTION.—The United States Government, and the crew of a 
merchant vessel owned or operated by the Government, 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 Government for its own benefit, and not for the benefit 
of the crew, shall be deposited in the Treasury to the credit of the depart-
ment of the Government, or the corporation, having control of the posses-
sion or operation of the vessel. 
‘‘§ 30917. Disposition of amounts recovered by United States 
Government 
‘‘Amounts recovered in a civil action brought by the United States Gov-
ernment on a claim arising from the ownership, possession, or operation 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 Govern-
ment, or the federally-owned corporation, having control of the vessel or 
cargo, for reimbursement of the appropriation, insurance fund, or other 
fund from which the compensation for which the judgment was recovered 
was or will be paid.
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‘‘§ 30918. Reports 
‘‘The Secretary of each department of the United States Government, 
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 Government for— 
‘‘(1) damages caused by a public vessel of the United States; or 
‘‘(2) compensation for towage and salvage services, including con-
tract salvage, rendered to a public vessel of the United States. 
‘‘(b) COUNTERCLAIM OR SETOFF.—If the Government brings a civil ac-
tion 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 per-
sonam, or claim a setoff, against the Government 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
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‘‘(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 Government 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 au-
thorized by this chapter if the claim actually has been filed. 
‘‘§ 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 presen-
tation 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 subpoe-
naed 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 ac-
tion 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 cir-
cumstances, 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 existence of or 
as creating a lien against a public vessel of the United States.
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‘‘§ 31113. Reports 
‘‘The Attorney General shall report to Congress at each session thereof 
all claims settled under this chapter.’’. 
SEC. 6. 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 Trans-
portation.
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 com-
mon carriage of goods by water in the foreign commerce of the United 
States with a minimum of government intervention 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, international shipping practices; 
‘‘(3) encourage the development of an economically sound and effi-
cient United States-flag liner fleet 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:
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‘‘(1) AGREEMENT.—The term ‘agreement’— 
‘‘(A) means a written or oral understanding, arrangement, 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 load-
ed and carried in bulk without mark or count. 
‘‘(5) CHEMICAL PARCEL-TANKER.—The term ‘chemical parcel-tank-
er’ 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 systems to per-
mit simultaneous carriage of several bulk chemical cargoes 
with minimum risk of cross-contamination; and 
‘‘(B) a valid certificate of fitness under the International Mari-
time 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 trans-
portation by water of passengers or cargo between the United 
States and a foreign country for compensation; 
‘‘(ii) assumes responsibility for the transportation from the 
port or point of receipt to the port or point of destination; 
and
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‘‘(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— 
‘‘(i) if the carrier and the owner of those commodities are 
wholly-owned, directly or indirectly, by a person primarily en-
gaged in the marketing and distribution 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 con-
certed activity and to use a common tariff; but 
‘‘(B) does not include a joint service, consortium, pooling, sail-
ing, or transshipment agreement. 
‘‘(8) CONTROLLED CARRIER.—The term ‘controlled carrier’ means 
an ocean common carrier that is, or whose operating assets are, di-
rectly or indirectly, owned or controlled by a government, with owner-
ship 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 con-
trolled in any manner by that government, an agency of that gov-
ernment, or a public or private person controlled by that govern-
ment; or 
‘‘(B) that government has the right to appoint or disapprove the 
appointment of a majority of the directors, the chief operating of-
ficer, or the chief executive officer of the carrier. 
‘‘(9) DEFERRED REBATE.—The term ‘deferred rebate’ means a re-
turn 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 pe-
riod 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.
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‘‘(10) FOREST PRODUCTS.—The term ‘forest products’ includes lum-
ber in bundles, rough timber, ties, poles, piling, laminated beams, bun-
dled 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 agreement; and 
‘‘(B) a deferred rebate arrangement. 
‘‘(14) MARINE TERMINAL OPERATOR.—The term ‘marine terminal 
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 car-
rier 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 bar-
gaining agreement among members of a multi-employer bar-
gaining group; or 
‘‘(iii) an agreement specifically implementing provisions of 
such a collective bargaining agreement or providing 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—
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‘‘(A) does not operate the vessels by which the ocean transpor-
tation is provided; and 
‘‘(B) is a shipper in its relationship with an ocean common car-
rier. 
‘‘(17) OCEAN COMMON CARRIER.—The term ‘ocean common carrier’ 
means a vessel-operating common carrier. 
‘‘(18) OCEAN FREIGHT FORWARDER.—The term ‘ocean freight for-
warder’ means a person that— 
‘‘(A) in the United States, dispatches shipments from the 
United States via a common carrier and books or otherwise ar-
ranges 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 forwarder 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 individual ocean common car-
rier or an agreement between or among ocean common carriers, on the 
other, in which— 
‘‘(A) the shipper or shippers commit to providing a certain vol-
ume or portion of cargo over a fixed time period; and 
‘‘(B) the ocean common carrier or the agreement commits to a 
certain rate or rate schedule and a defined service level, such as 
assured space, transit time, port rotation, or similar service fea-
tures. 
‘‘(21) SHIPMENT.—The term ‘shipment’ means all of the cargo car-
ried under the terms of a single bill of lading. 
‘‘(22) SHIPPER.—The term ‘shipper’ means— 
‘‘(A) a cargo owner; 
‘‘(B) the person for whose account the ocean transportation 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 re-
sponsibility for payment of all charges applicable under the tariff 
or service contract. 
‘‘(23) SHIPPERS’ ASSOCIATION.—The term ‘shippers’ association’ 
means a group of shippers that consolidates or distributes freight on
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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 trans-
portation. 
‘‘(25) THROUGH TRANSPORTATION.—The term ‘through transpor-
tation’ 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 detrimental 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 depart-
ments 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 memorandum shall be made under oath if the Commission re-
quires, 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. 
‘‘40305.
Assessment agreements. 
‘‘40306.
Nondisclosure of information. 
‘‘40307.
Exemption from antitrust laws.
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‘‘§ 40301. Application 
‘‘(a) OCEAN COMMON CARRIER AGREEMENTS.—This part applies to an 
agreement between or among ocean common carriers to— 
‘‘(1) discuss, fix, or regulate transportation rates, including through 
rates, cargo space accommodations, and other conditions of service; 
‘‘(2) pool or apportion traffic, revenues, earnings, or losses; 
‘‘(3) allot ports or regulate the number and character of voyages be-
tween ports; 
‘‘(4) regulate the volume or character of cargo or passenger traffic 
to be carried; 
‘‘(5) engage in an exclusive, preferential, or cooperative working ar-
rangement between themselves or with a marine terminal operator; 
‘‘(6) control, regulate, or prevent competition in international ocean 
transportation; or 
‘‘(7) discuss and agree on any matter related to a service contract. 
‘‘(b) MARINE TERMINAL OPERATOR AGREEMENTS.—This part applies to 
an agreement between or among marine terminal operators, or between or 
among one or more marine terminal operators and one or more ocean com-
mon carriers, to— 
‘‘(1) discuss, fix, or regulate rates or other conditions of service; or 
‘‘(2) engage in exclusive, preferential, or cooperative working ar-
rangements, to the extent the agreement involves ocean transportation 
in the foreign commerce of the United States. 
‘‘(c) ACQUISITIONS.—This part does not apply to an acquisition by any 
person, directly or indirectly, of any voting security or assets of any other 
person. 
‘‘(d) MARITIME LABOR AGREEMENTS.—This part does not apply to a 
maritime labor agreement. However, this subsection does not exempt from 
this part any rate, charge, regulation, or practice of a common carrier that 
is required to be set forth in a tariff or is an essential term of a service 
contract, whether or not the rate, charge, regulation, or practice arises out 
of, or is otherwise related to, a maritime labor agreement. 
‘‘(e) ASSESSMENT AGREEMENTS.—This part (except sections 40305 and 
40307(a)) does not apply to an assessment agreement. 
‘‘§ 40302. Filing requirements 
‘‘(a) IN GENERAL.—A true copy of every agreement referred to in section 
40301(a) or (b) of this title shall be filed with the Federal Maritime Com-
mission. If the agreement is oral, a complete memorandum specifying in de-
tail the substance of the agreement shall be filed. 
‘‘(b) EXCEPTIONS.—Subsection (a) does not apply to—
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‘‘(1) an agreement related to transportation to be performed within 
or between foreign countries; or 
‘‘(2) an agreement among common carriers to establish, operate, or 
maintain a marine terminal in the United States. 
‘‘(c) REGULATIONS.—The Commission may by regulation prescribe the 
form and manner in which an agreement shall be filed and any additional 
information and documents necessary to evaluate the agreement. 
‘‘§ 40303. Content requirements 
‘‘(a) OCEAN COMMON CARRIER AGREEMENTS.— 
‘‘(1) RESTRICTIONS.—An ocean common carrier agreement may 
not— 
‘‘(A) prohibit or restrict a member of the agreement from en-
gaging in negotiations for a service contract with a shipper; 
‘‘(B) require a member of the agreement to disclose a negotia-
tion on a service contract, or the terms of a service contract, other 
than those terms required to be published under section 40502(d) 
of this title; or 
‘‘(C) adopt mandatory rules or requirements affecting the right 
of an agreement member to negotiate and enter into a service con-
tract. 
‘‘(2) VOLUNTARY GUIDELINES.—An ocean common carrier agree-
ment may provide authority to adopt voluntary guidelines relating to 
the terms and procedures of an agreement member’s service contracts 
if the guidelines explicitly state the right of members of the agreement 
not to follow the guidelines. Any guidelines adopted shall be submitted 
confidentially to the Federal Maritime Commission. 
‘‘(b) CONFERENCE AGREEMENTS.—Each conference agreement must— 
‘‘(1) state its purpose; 
‘‘(2) provide reasonable and equal terms for admission and readmis-
sion to conference membership for any ocean common carrier willing 
to serve the particular trade or route; 
‘‘(3) permit any member to withdraw from conference membership 
on reasonable notice without penalty; 
‘‘(4) at the request of any member, require an independent neutral 
body to police fully the obligations of the conference and its members; 
‘‘(5) prohibit the conference from engaging in conduct prohibited by 
section 41105(1) or (3) of this title; 
‘‘(6) provide for a consultation process designed to promote— 
‘‘(A) commercial resolution of disputes; and 
‘‘(B) cooperation with shippers in preventing and eliminating 
malpractices;
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‘‘(7) establish procedures for promptly and fairly considering re-
quests and complaints of shippers; and 
‘‘(8) provide that— 
‘‘(A) any member of the conference may take independent ac-
tion on a rate or service item on not more than 5 days’ notice to 
the conference; and 
‘‘(B) except for an exempt commodity not published in the con-
ference tariff, the conference will include the new rate or service 
item in its tariff for use by that member, effective no later than 
5 days after receipt of the notice, and by any other member that 
notifies the conference that it elects to adopt the independent rate 
or service item on or after its effective date, in lieu of the existing 
conference tariff provision for that rate or service item. 
‘‘(c) INTERCONFERENCE AGREEMENTS.—Each agreement between car-
riers not members of the same conference must provide the right of inde-
pendent action for each carrier. Each agreement between conferences must 
provide the right of independent action for each conference. 
‘‘(d) VESSEL SHARING AGREEMENTS.— 
‘‘(1) IN GENERAL.—An ocean common carrier that is the owner, op-
erator, or bareboat, time, or slot charterer of a United States-flag liner 
vessel documented under section 12103 or 12111(c) of this title may 
agree with an ocean common carrier described in paragraph (2) to 
which it charters or subcharters the vessel or space on the vessel that 
the charterer or subcharterer may not use or make available space on 
the vessel for the carriage of cargo reserved by law for United States- 
flag vessels. 
‘‘(2) CARRIER DESCRIBED.—An ocean common carrier described in 
this paragraph is one that is not the owner, operator, or bareboat 
charterer for at least one year of United States-flag liner vessels that 
are eligible to be included in the Maritime Security Fleet Program and 
are enrolled in an Emergency Preparedness Program under chapter 
531 of this title. 
‘‘§ 40304. Commission action 
‘‘(a) NOTICE OF FILING.—Within 7 days after an agreement is filed, the 
Federal Maritime Commission shall transmit a notice of the filing to the 
Federal Register for publication. 
‘‘(b) PRELIMINARY REVIEW AND REJECTION.—After preliminary review, 
the Commission shall reject an agreement that it finds does not meet the 
requirements of sections 40302 and 40303 of this title. The Commission 
shall notify in writing the person filing the agreement of the reason for re-
jection.
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‘‘(c) REVIEW AND EFFECTIVE DATE.—Unless rejected under subsection 
(b), an agreement (other than an assessment agreement) is effective— 
‘‘(1) on the 45th day after filing, or on the 30th day after notice 
of the filing is published in the Federal Register, whichever is later; 
or 
‘‘(2) if additional information or documents are requested under sub-
section (d)— 
‘‘(A) on the 45th day after the Commission receives all the addi-
tional information and documents; or 
‘‘(B) if the request is not fully complied with, on the 45th day 
after the Commission receives the information and documents sub-
mitted and a statement of the reasons for noncompliance with the 
request. 
‘‘(d) REQUEST FOR ADDITIONAL INFORMATION.—Before the expiration of 
the period specified in subsection (c)(1), the Commission may request from 
the person filing the agreement any additional information and documents 
the Commission considers necessary to make the determinations required by 
this section. 
‘‘(e) MODIFICATION OF REVIEW PERIOD.— 
‘‘(1) SHORTENING.—On request of the party filing an agreement, 
the Commission may shorten a period specified in subsection (c), but 
not to a date that is less than 14 days after notice of the filing of the 
agreement is published in the Federal Register. 
‘‘(2) EXTENSION.—The period specified in subsection (c)(2) may be 
extended only by the United States District Court for the District of 
Columbia in a civil action brought by the Commission under section 
41307(c) of this title. 
‘‘(f) FIXED TERMS.—The Commission may not limit the effectiveness of 
an agreement to a fixed term. 
‘‘§ 40305. Assessment agreements 
‘‘(a) FILING REQUIREMENT.—An assessment agreement shall be filed 
with the Federal Maritime Commission and is effective on filing. 
‘‘(b) COMPLAINTS.—If a complaint is filed with the Commission within 
2 years after the date of an assessment agreement, the Commission shall 
disapprove, cancel, or modify the agreement, or an assessment or charge 
pursuant to the agreement, that the Commission finds, after notice and op-
portunity for a hearing, to be unjustly discriminatory or unfair as between 
carriers, shippers, or ports. The Commission shall issue its final decision in 
the proceeding within one year after the date the complaint is filed. 
‘‘(c) ADJUSTMENTS OF ASSESSMENTS AND CHARGES.—To the extent 
that the Commission finds under subsection (b) that an assessment or
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charge is unjustly discriminatory or unfair as between carriers, shippers, or 
ports, the Commission shall adjust the assessment or charge for the period 
between the filing of the complaint and the final decision by awarding pro-
spective credits or debits to future assessments and charges. However, if the 
complainant has ceased activities subject to the assessment or charge, the 
Commission may award reparations. 
‘‘§ 40306. Nondisclosure of information 
‘‘Information and documents (other than an agreement) filed with the 
Federal Maritime Commission under this chapter are exempt from disclo-
sure under section 552 of title 5 and may not be made public except as 
may be relevant to an administrative or judicial proceeding. This section 
does not prevent disclosure to either House of Congress or to a duly author-
ized committee or subcommittee of Congress. 
‘‘§ 40307. Exemption from antitrust laws 
‘‘(a) IN GENERAL.—The antitrust laws do not apply to— 
‘‘(1) an agreement (including an assessment agreement) that has 
been filed and is effective under this chapter; 
‘‘(2) an agreement that is exempt under section 40103 of this title 
from any requirement of this part; 
‘‘(3) an agreement or activity within the scope of this part, whether 
permitted under or prohibited by this part, undertaken or entered into 
with a reasonable basis to conclude that it is— 
‘‘(A) pursuant to an agreement on file with the Federal Mari-
time Commission and in effect when the activity takes place; or 
‘‘(B) exempt under section 40103 of this title from any filing 
or publication requirement of this part; 
‘‘(4) an agreement or activity relating to transportation services 
within or between foreign countries, whether or not via the United 
States, unless the agreement or activity has a direct, substantial, and 
reasonably foreseeable effect on the commerce of the United States; 
‘‘(5) an agreement or activity relating to the foreign inland segment 
of through transportation that is part of transportation provided in a 
United States import or export trade; 
‘‘(6) an agreement or activity to provide wharfage, dock, warehouse, 
or other terminal facilities outside the United States; or 
‘‘(7) an agreement, modification, or cancellation approved before 
June 18, 1984, by the Commission under section 15 of the Shipping 
Act, 1916, or permitted under section 14b of that Act, and any prop-
erly published tariff, rate, fare, or charge, or classification, rule, or reg-
ulation explanatory thereof implementing that agreement, modification, 
or cancellation.
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‘‘(b) EXCEPTIONS.—This part does not extend antitrust immunity to— 
‘‘(1) an agreement with or among air carriers, rail carriers, motor 
carriers, or common carriers by water not subject to this part relating 
to transportation within the United States; 
‘‘(2) a discussion or agreement among common carriers subject to 
this part relating to the inland divisions (as opposed to the inland por-
tions) of through rates within the United States; 
‘‘(3) an agreement among common carriers subject to this part to 
establish, operate, or maintain a marine terminal in the United States; 
or 
‘‘(4) a loyalty contract. 
‘‘(c) RETROACTIVE EFFECT OF DETERMINATIONS.—A determination by 
an agency or court that results in the denial or removal of the immunity 
to the antitrust laws under subsection (a) does not remove or alter the anti-
trust immunity for the period before the determination. 
‘‘(d) RELIEF UNDER CLAYTON ACT.—A person may not recover damages 
under section 4 of the Clayton Act (15 U.S.C. 15), or obtain injunctive re-
lief under section 16 of that Act (15 U.S.C. 26), for conduct prohibited by 
this part. 
‘‘CHAPTER 405—TARIFFS, SERVICE CONTRACTS, 
REFUNDS, AND WAIVERS 
‘‘Sec. 
‘‘40501.
General rate and tariff requirements. 
‘‘40502.
Service contracts. 
‘‘40503.
Refunds and waivers. 
‘‘§ 40501. General rate and tariff requirements 
‘‘(a) AUTOMATED TARIFF SYSTEM.— 
‘‘(1) IN GENERAL.—Each common carrier and conference shall keep 
open to public inspection in an automated tariff system, tariffs showing 
all its rates, charges, classifications, rules, and practices between all 
points or ports on its own route and on any through transportation 
route that has been established. However, a common carrier is not re-
quired to state separately or otherwise reveal in tariffs the inland divi-
sions of a through rate. 
‘‘(2) EXCEPTIONS.—Paragraph (1) does not apply with respect to 
bulk cargo, forest products, recycled metal scrap, new assembled motor 
vehicles, waste paper, or paper waste. 
‘‘(b) CONTENTS OF TARIFFS.—A tariff under subsection (a) shall— 
‘‘(1) state the places between which cargo will be carried; 
‘‘(2) list each classification of cargo in use; 
‘‘(3) state the level of compensation, if any, of any ocean freight for-
warder by a carrier or conference;
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‘‘(4) state separately each terminal or other charge, privilege, or fa-
cility under the control of the carrier or conference and any rules that 
in any way change, affect, or determine any part or the total of the 
rates or charges; 
‘‘(5) include sample copies of any bill of lading, contract of affreight-
ment, or other document evidencing the transportation agreement; and 
‘‘(6) include copies of any loyalty contract, omitting the shipper’s 
name. 
‘‘(c) ELECTRONIC ACCESS.—A tariff under subsection (a) shall be made 
available electronically to any person, without time, quantity, or other limi-
tation, through appropriate access from remote locations. A reasonable fee 
may be charged for such access, except that no fee may be charged for ac-
cess by a Federal agency. 
‘‘(d) TIME-VOLUME RATES.—A rate contained in a tariff under sub-
section (a) may vary with the volume of cargo offered over a specified period 
of time. 
‘‘(e) EFFECTIVE DATES.— 
‘‘(1) INCREASES.—A new or initial rate or change in an existing rate 
that results in an increased cost to a shipper may not become effective 
earlier than 30 days after publication. However, for good cause, the 
Federal Maritime Commission may allow the rate to become effective 
sooner. 
‘‘(2) DECREASES.—A change in an existing rate that results in a de-
creased cost to a shipper may become effective on publication. 
‘‘(f) MARINE TERMINAL OPERATOR SCHEDULES.—A marine terminal op-
erator may make available to the public a schedule of rates, regulations, and 
practices, including limitations of liability for cargo loss or damage, per-
taining to receiving, delivering, handling, or storing property at its marine 
terminal. Any such schedule made available to the public is enforceable by 
an appropriate court as an implied contract without proof of actual knowl-
edge of its provisions. 
‘‘(g) REGULATIONS.— 
‘‘(1) IN GENERAL.—The Commission shall by regulation prescribe 
the requirements for the accessibility and accuracy of automated tariff 
systems established under this section. The Commission, after periodic 
review, may prohibit the use of any automated tariff system that fails 
to meet the requirements established under this section. 
‘‘(2) REMOTE
TERMINALS.—The Commission may not require a 
common carrier to provide a remote terminal for electronic access 
under subsection (c).
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‘‘(3) MARINE TERMINAL OPERATOR SCHEDULES.—The Commission 
shall by regulation prescribe the form and manner in which marine ter-
minal operator schedules authorized by this section shall be published. 
‘‘§ 40502. Service contracts 
‘‘(a) IN GENERAL.—An individual ocean common carrier or an agreement 
between or among ocean common carriers may enter into a service contract 
with one or more shippers subject to the requirements of this part. 
‘‘(b) FILING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Each service contract entered into under this 
section by an individual ocean common carrier or an agreement shall 
be filed confidentially with the Federal Maritime Commission. 
‘‘(2) EXCEPTIONS.—Paragraph (1) does not apply to contracts re-
garding bulk cargo, forest products, recycled metal scrap, new assem-
bled motor vehicles, waste paper, or paper waste. 
‘‘(c) ESSENTIAL TERMS.—Each service contract shall include— 
‘‘(1) the origin and destination port ranges; 
‘‘(2) the origin and destination geographic areas in the case of 
through intermodal movements; 
‘‘(3) the commodities involved; 
‘‘(4) the minimum volume or portion; 
‘‘(5) the line-haul rate; 
‘‘(6) the duration; 
‘‘(7) service commitments; and 
‘‘(8) the liquidated damages for nonperformance, if any. 
‘‘(d) PUBLICATION OF CERTAIN TERMS.—When a service contract is filed 
confidentially with the Commission, a concise statement of the essential 
terms specified in clauses (1), (3), (4), and (6) of subsection (c) shall be 
published and made available to the general public in tariff format. 
‘‘(e) DISCLOSURE OF CERTAIN TERMS.— 
‘‘(1) DEFINITIONS.—In this subsection, the terms ‘dock area’ and 
‘within the port area’ have the same meaning and scope as in the appli-
cable collective bargaining agreement between the requesting labor or-
ganization and the carrier. 
‘‘(2) DISCLOSURE.—An ocean common carrier that is a party to or 
is otherwise subject to a collective bargaining agreement with a labor 
organization shall, in response to a written request by the labor organi-
zation, state whether it is responsible for the following work at a dock 
area or within a port area in the United States with respect to cargo 
transportation under a service contract:
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‘‘(A) The movement of the shipper’s cargo on a dock area or 
within the port area or to or from railroad cars on a dock area 
or within the port area. 
‘‘(B) The assignment of intraport carriage of the shipper’s 
cargo between areas on a dock or within the port area. 
‘‘(C) The assignment of the carriage of the shipper’s cargo be-
tween a container yard on a dock area or within the port area and 
a rail yard adjacent to the container yard. 
‘‘(D) The assignment of container freight station work and con-
tainer maintenance and repair work performed at a dock area or 
within the port area. 
‘‘(3) WITHIN REASONABLE TIME.—The common carrier shall provide 
the information described in paragraph (2) to the requesting labor or-
ganization within a reasonable period of time. 
‘‘(4) EXISTENCE OF COLLECTIVE BARGAINING AGREEMENT.—This 
subsection does not require the disclosure of information by an ocean 
common carrier unless there exists an applicable and otherwise lawful 
collective bargaining agreement pertaining to that carrier. A disclosure 
by an ocean common carrier may not be deemed an admission or an 
agreement that any work is covered by a collective bargaining agree-
ment. A dispute about whether any work is covered by a collective bar-
gaining agreement and the responsibility of an ocean common carrier 
under a collective bargaining agreement shall be resolved solely in ac-
cordance with the dispute resolution procedures contained in the collec-
tive bargaining agreement and the National Labor Relations Act (29 
U.S.C. 151 et seq.), and without reference to this subsection. 
‘‘(5) EFFECT UNDER OTHER LAWS.—This subsection does not affect 
the lawfulness or unlawfulness under this part or any other Federal or 
State law of any collective bargaining agreement or element thereof, in-
cluding any element that constitutes an essential term of a service con-
tract. 
‘‘(f) REMEDY FOR BREACH.—Unless the parties agree otherwise, the ex-
clusive remedy for a breach of a service contract is an action in an appro-
priate court. The contract dispute resolution forum may not be controlled 
by or in any way affiliated with a controlled carrier or by the government 
that owns or controls the carrier. 
‘‘§ 40503. Refunds and waivers 
‘‘The Federal Maritime Commission, on application of a carrier or ship-
per, may permit a common carrier or conference to refund a portion of the 
freight charges collected from a shipper, or to waive collection of a portion 
of the charges from a shipper, if—
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‘‘(1) there is an error in a tariff, a failure to publish a new tariff, 
or an error in quoting a tariff, and the refund or waiver will not result 
in discrimination among shippers, ports, or carriers; 
‘‘(2) the common carrier or conference, before filing an application 
for authority to refund or waive any charges for an error in a tariff 
or a failure to publish a tariff, has published a new tariff setting forth 
the rate on which the refund or waiver would be based; and 
‘‘(3) the application for the refund or waiver is filed with the Com-
mission within 180 days from the date of shipment. 
‘‘CHAPTER 407—CONTROLLED CARRIERS 
‘‘Sec. 
‘‘40701.
Rates. 
‘‘40702.
Rate standards. 
‘‘40703.
Effective date of rates. 
‘‘40704.
Commission review. 
‘‘40705.
Presidential review of Commission orders. 
‘‘40706.
Exceptions. 
‘‘§ 40701. Rates 
‘‘(a) IN GENERAL.—A controlled carrier may not— 
‘‘(1) maintain a rate or charge in a tariff or service contract, or 
charge or assess a rate, that is below a just and reasonable level; or 
‘‘(2) establish, maintain, or enforce in a tariff or service contract a 
classification, rule, or regulation that results, or is likely to result, in 
the carriage or handling of cargo at a rate or charge that is below a 
just and reasonable level. 
‘‘(b) COMMISSION PROHIBITION.—The Federal Maritime Commission, at 
any time after notice and opportunity for a hearing, may prohibit the publi-
cation or use of a rate, charge, classification, rule, or regulation that a con-
trolled carrier has failed to demonstrate is just and reasonable. 
‘‘(c) BURDEN OF PROOF.—In a proceeding under this section, the burden 
of proof is on the controlled carrier to demonstrate that its rate, charge, 
classification, rule, or regulation is just and reasonable. 
‘‘(d) VOIDNESS.—A rate, charge, classification, rule, or regulation that 
has been suspended or prohibited by the Commission is void and its use is 
unlawful. 
‘‘§ 40702. Rate standards 
‘‘(a) DEFINITION.—In this section, the term ‘constructive costs’ means 
the costs of another carrier, other than a controlled carrier, operating simi-
lar vessels and equipment in the same or a similar trade. 
‘‘(b) STANDARDS.—In determining whether a rate, charge, classification, 
rule, or regulation of a controlled carrier is just and reasonable, the Federal 
Maritime Commission— 
‘‘(1) shall take into account whether the rate or charge that has been 
published or assessed, or that would result from the pertinent classi-
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fication, rule, or regulation, is below a level that is fully compensatory 
to the controlled carrier based on the carrier’s actual costs or construc-
tive costs; and 
‘‘(2) may take into account other appropriate factors, including 
whether the rate, charge, classification, rule, or regulation is— 
‘‘(A) the same as, or similar to, those published or assessed by 
other carriers in the same trade; 
‘‘(B) required to ensure movement of particular cargo in the 
same trade; or 
‘‘(C) required to maintain acceptable continuity, level, or quality 
of common carrier service to or from affected ports. 
‘‘§ 40703. Effective date of rates 
‘‘Notwithstanding section 40501(e) of this title and except for service 
contracts, a rate, charge, classification, rule, or regulation of a controlled 
carrier may not become effective, without special permission of the Federal 
Maritime Commission, until the 30th day after publication. 
‘‘§ 40704. Commission review 
‘‘(a) REQUEST FOR JUSTIFICATION.—On request of the Federal Maritime 
Commission, a controlled carrier shall file with the Commission, within 20 
days of the request, a statement of justification that sufficiently details the 
carrier’s need and purpose for an existing or proposed rate, charge, classi-
fication, rule, or regulation and upon which the Commission may reasonably 
base a determination of its lawfulness. 
‘‘(b) DETERMINATION.—Within 120 days after receipt of information re-
quested under subsection (a), the Commission shall determine whether the 
rate, charge, classification, rule, or regulation may be unjust and unreason-
able. 
‘‘(c) SHOW CAUSE ORDER.—Whenever the Commission is of the opinion 
that a rate, charge, classification, rule, or regulation published or assessed 
by a controlled carrier may be unjust and unreasonable, the Commission 
shall issue an order to the controlled carrier to show cause why the rate, 
charge, classification, rule, or regulation should not be prohibited. 
‘‘(d) SUSPENSION PENDING DETERMINATION.— 
‘‘(1) NOT YET EFFECTIVE.—Pending a determination of the lawful-
ness of a rate, charge, classification, rule, or regulation in a proceeding 
under subsection (c), the Commission may suspend the rate, charge, 
classification, rule, or regulation at any time before its effective date. 
‘‘(2) ALREADY EFFECTIVE.—If a rate, charge, classification, rule, or 
regulation has already become effective, the Commission, on issuance 
of an order to show cause, may suspend the rate, charge, classification, 
rule, or regulation on at least 30 days’ notice to the controlled carrier.
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‘‘(3) MAXIMUM SUSPENSION.—A period of suspension under this 
subsection may not exceed 180 days. 
‘‘(e) REPLACEMENT DURING SUSPENSION.—Whenever the Commission 
has suspended a rate, charge, classification, rule, or regulation under this 
section, the controlled carrier may publish a new rate, charge, classification, 
rule, or regulation to take effect immediately during the suspension in lieu 
of the suspended rate, charge, classification, rule, or regulation. However, 
the Commission may reject the new rate, charge, classification, rule, or reg-
ulation if the Commission believes it is unjust and unreasonable. 
‘‘§ 40705. Presidential review of Commission orders 
‘‘(a) TRANSMISSION TO PRESIDENT.—The Federal Maritime Commission 
shall transmit to the President, concurrently with publication thereof, each 
order of suspension or final order of prohibition issued under section 40704 
of this title. 
‘‘(b) PRESIDENTIAL REQUEST
AND COMMISSION ACTION.—Within 10 
days after receipt or the effective date of a Commission order referred to 
in subsection (a), the President, in writing, may request the Commission to 
stay the effect of the order if the President finds that the stay is required 
for reasons of national defense or foreign policy. The reasons shall be speci-
fied in the request. The Commission shall immediately grant the request by 
issuing an order in which the President’s request shall be described. During 
a stay, the President shall, whenever practicable, attempt to resolve the 
matter by negotiating with representatives of the applicable foreign govern-
ments. 
‘‘§ 40706. Exceptions 
‘‘This chapter does not apply to— 
‘‘(1) a controlled carrier of a foreign country whose vessels are enti-
tled by a treaty of the United States to receive national or most-fa-
vored-nation treatment; or 
‘‘(2) a trade served only by controlled carriers. 
‘‘CHAPTER 409—OCEAN TRANSPORTATION 
INTERMEDIARIES 
‘‘Sec. 
‘‘40901.
License requirement. 
‘‘40902.
Financial responsibility. 
‘‘40903.
Suspension or revocation of license. 
‘‘40904.
Compensation by common carriers. 
‘‘§ 40901. License requirement 
‘‘(a) IN GENERAL.—A person in the United States may not act as an 
ocean transportation intermediary unless the person holds an ocean trans-
portation intermediary’s license issued by the Federal Maritime Commis-
sion. The Commission shall issue a license to a person that the Commission
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determines to be qualified by experience and character to act as an ocean 
transportation intermediary. 
‘‘(b) EXCEPTION.—A person whose primary business is the sale of mer-
chandise may forward shipments of the merchandise for its own account 
without an ocean transportation intermediary’s license. 
‘‘§ 40902. Financial responsibility 
‘‘(a) IN GENERAL.—A person may not act as an ocean transportation 
intermediary unless the person furnishes a bond, proof of insurance, or 
other surety— 
‘‘(1) in a form and amount determined by the Federal Maritime 
Commission to insure financial responsibility; and 
‘‘(2) issued by a surety company found acceptable by the Secretary 
of the Treasury. 
‘‘(b) SCOPE
OF FINANCIAL RESPONSIBILITY.—A bond, insurance, or 
other surety obtained under this section— 
‘‘(1) shall be available to pay any penalty assessed under section 
41109 of this title or any order for reparation issued under section 
41305 of this title; 
‘‘(2) may be available to pay any claim against an ocean transpor-
tation intermediary arising from its transportation-related activities— 
‘‘(A) with the consent of the insured ocean transportation inter-
mediary and subject to review by the surety company; or 
‘‘(B) when the claim is deemed valid by the surety company 
after the ocean transportation intermediary has failed to respond 
to adequate notice to address the validity of the claim; and 
‘‘(3) shall be available to pay any judgment for damages against an 
ocean transportation intermediary arising from its transportation-re-
lated activities, if the claimant has first attempted to resolve the claim 
under paragraph (2) and the claim has not been resolved within a rea-
sonable period of time. 
‘‘(c) REGULATIONS ON COURT JUDGMENTS.—The Commission shall pre-
scribe regulations for the purpose of protecting the interests of claimants, 
ocean transportation intermediaries, and surety companies with respect to 
the process of pursuing claims against ocean transportation intermediary 
bonds, insurance, or sureties through court judgments. The regulations shall 
provide that a judgment for monetary damages may not be enforced except 
to the extent that the damages claimed arise from the transportation-related 
activities of the insured ocean transportation intermediary, as defined by the 
Commission. 
‘‘(d) RESIDENT AGENT.—An ocean transportation intermediary not domi-
ciled in the United States shall designate a resident agent in the United
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States for receipt of service of judicial and administrative process, including 
subpoenas. 
‘‘§ 40903. Suspension or revocation of license 
‘‘(a) FAILURE TO MAINTAIN QUALIFICATIONS OR TO COMPLY.—The 
Federal Maritime Commission, after notice and opportunity for a hearing, 
shall suspend or revoke an ocean transportation intermediary’s license if the 
Commission finds that the ocean transportation intermediary— 
‘‘(1) is not qualified to provide intermediary services; or 
‘‘(2) willfully failed to comply with a provision of this part or with 
an order or regulation of the Commission. 
‘‘(b) FAILURE TO MAINTAIN BOND, PROOF OF INSURANCE, OR OTHER 
SURETY.—The 
Commission 
may 
revoke 
an 
ocean 
transportation 
intermediary’s license for failure to maintain a bond, proof of insurance, or 
other surety as required by section 40902(a) of this title. 
‘‘§ 40904. Compensation by common carriers 
‘‘(a) CERTIFICATION OF LICENSE AND SERVICES.—A common carrier 
may compensate an ocean freight forwarder for a shipment dispatched for 
others only when the ocean freight forwarder has certified in writing that 
it holds an ocean transportation intermediary’s license (if required under 
section 40901 of this title) and has— 
‘‘(1) engaged, booked, secured, reserved, or contracted directly with 
the carrier or its agent for space aboard a vessel or confirmed the 
availability of the space; and 
‘‘(2) prepared and processed the ocean bill of lading, dock receipt, 
or other similar document for the shipment. 
‘‘(b) DUAL COMPENSATION.—A common carrier may not pay compensa-
tion for services described in subsection (a) more than once on the same 
shipment. 
‘‘(c) BENEFICIAL INTEREST SHIPMENTS.—An ocean freight forwarder 
may not receive compensation from a common carrier for a shipment in 
which the ocean freight forwarder has a direct or indirect beneficial interest. 
A common carrier may not knowingly pay compensation on that shipment. 
‘‘(d) LIMITS ON AUTHORITY OF CONFERENCE OR GROUP.—A conference 
or group of two or more ocean common carriers in the foreign commerce 
of the United States that is authorized to agree on the level of compensation 
paid to an ocean freight forwarder may not— 
‘‘(1) deny a member of the conference or group the right, upon no-
tice of not more than 5 days, to take independent action on any level 
of compensation paid to an ocean freight forwarder; or 
‘‘(2) agree to limit the payment of compensation to an ocean freight 
forwarder to less than 1.25 percent of the aggregate of all rates and
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charges applicable under a tariff and assessed against the cargo on 
which the services of the ocean freight forwarder are provided. 
‘‘CHAPTER 411—PROHIBITIONS AND PENALTIES 
‘‘Sec. 
‘‘41101.
Joint ventures and consortiums. 
‘‘41102.
General prohibitions. 
‘‘41103.
Disclosure of information. 
‘‘41104.
Common carriers. 
‘‘41105.
Concerted action. 
‘‘41106.
Marine terminal operators. 
‘‘41107.
Monetary penalties. 
‘‘41108.
Additional penalties. 
‘‘41109.
Assessment of penalties. 
‘‘§ 41101. Joint ventures and consortiums 
‘‘In this chapter, a joint venture or consortium of two or more common 
carriers operating as a single entity is deemed to be a single common car-
rier. 
‘‘§ 41102. General prohibitions 
‘‘(a) OBTAINING
TRANSPORTATION
AT
LESS
THAN
APPLICABLE 
RATES.—A person may not knowingly and willfully, directly or indirectly, 
by means of false billing, false classification, false weighing, false report of 
weight, false measurement, or any other unjust or unfair device or means, 
obtain or attempt to obtain ocean transportation for property at less than 
the rates or charges that would otherwise apply. 
‘‘(b) OPERATING CONTRARY TO AGREEMENT.—A person may not operate 
under an agreement required to be filed under section 40302 or 40305 of 
this title if— 
‘‘(1) the agreement has not become effective under section 40304 of 
this title or has been rejected, disapproved, or canceled; or 
‘‘(2) the operation is not in accordance with the terms of the agree-
ment or any modifications to the agreement made by the Federal Mari-
time Commission. 
‘‘(c) PRACTICES IN HANDLING PROPERTY.—A common carrier, marine 
terminal operator, or ocean transportation intermediary may not fail to es-
tablish, observe, and enforce just and reasonable regulations and practices 
relating to or connected with receiving, handling, storing, or delivering prop-
erty. 
‘‘§ 41103. Disclosure of information 
‘‘(a) PROHIBITION.—A common carrier, marine terminal operator, or 
ocean freight forwarder, either alone or in conjunction with any other per-
son, directly or indirectly, may not knowingly disclose, offer, solicit, or re-
ceive any information concerning the nature, kind, quantity, destination, 
consignee, or routing of any property tendered or delivered to a common 
carrier, without the consent of the shipper or consignee, if the informa-
tion—
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‘‘(1) may be used to the detriment or prejudice of the shipper, the 
consignee, or any common carrier; or 
‘‘(2) may improperly disclose its business transaction to a compet-
itor. 
‘‘(b) EXCEPTIONS.—Subsection (a) does not prevent providing the infor-
mation— 
‘‘(1) in response to legal process; 
‘‘(2) to the Federal Maritime Commission or an agency of the 
United States Government; or 
‘‘(3) to an independent neutral body operating within the scope of 
its authority to fulfill the policing obligations of the parties to an agree-
ment effective under this part. 
‘‘(c) DISCLOSURE FOR DETERMINING BREACH OR COMPILING STATIS-
TICS.—An ocean common carrier that is a party to a conference agreement 
approved under this part, a receiver, trustee, lessee, agent, or employee of 
the carrier, or any other person authorized by the carrier to receive informa-
tion— 
‘‘(1) may give information to the conference or any person or agency 
designated by the conference, for the purpose of— 
‘‘(A) determining whether a shipper or consignee has breached 
an agreement with the conference or its member lines; 
‘‘(B) determining whether a member of the conference has 
breached the conference agreement; or 
‘‘(C) compiling statistics of cargo movement; and 
‘‘(2) may not prevent the conference or its designee from soliciting 
or receiving information for any of those purposes. 
‘‘§ 41104. Common carriers 
‘‘A common carrier, either alone or in conjunction with any other person, 
directly or indirectly, may not— 
‘‘(1) allow a person to obtain transportation for property at less than 
the rates or charges established by the carrier in its tariff or service 
contract by means of false billing, false classification, false weighing, 
false measurement, or any other unjust or unfair device or means; 
‘‘(2) provide service in the liner trade that is— 
‘‘(A) not in accordance with the rates, charges, classifications, 
rules, and practices contained in a tariff published or a service 
contract entered into under chapter 405 of this title, unless ex-
cepted or exempted under section 40103 or 40501(a)(2) of this 
title; or
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‘‘(B) under a tariff or service contract that has been suspended 
or prohibited by the Federal Maritime Commission under chapter 
407 or 423 of this title; 
‘‘(3) retaliate against a shipper by refusing, or threatening to refuse, 
cargo space accommodations when available, or resort to other unfair 
or unjustly discriminatory methods because the shipper has patronized 
another carrier, or has filed a complaint, or for any other reason; 
‘‘(4) for service pursuant to a tariff, engage in any unfair or unjustly 
discriminatory practice in the matter of— 
‘‘(A) rates or charges; 
‘‘(B) cargo classifications; 
‘‘(C) cargo space accommodations or other facilities, with due 
regard being given to the proper loading of the vessel and the 
available tonnage; 
‘‘(D) loading and landing of freight; or 
‘‘(E) adjustment and settlement of claims; 
‘‘(5) for service pursuant to a service contract, engage in any unfair 
or unjustly discriminatory practice in the matter of rates or charges 
with respect to any port; 
‘‘(6) use a vessel in a particular trade for the purpose of excluding, 
preventing, or reducing competition by driving another ocean common 
carrier out of that trade; 
‘‘(7) offer or pay any deferred rebates; 
‘‘(8) for service pursuant to a tariff, give any undue or unreasonable 
preference or advantage or impose any undue or unreasonable prejudice 
or disadvantage; 
‘‘(9) for service pursuant to a service contract, give any undue or 
unreasonable preference or advantage or impose any undue or unrea-
sonable prejudice or disadvantage with respect to any port; 
‘‘(10) unreasonably refuse to deal or negotiate; 
‘‘(11) knowingly and willfully accept cargo from or transport cargo 
for the account of an ocean transportation intermediary that does not 
have a tariff as required by section 40501 of this title and a bond, in-
surance, or other surety as required by section 40902 of this title; or 
‘‘(12) knowingly and willfully enter into a service contract with an 
ocean transportation intermediary that does not have a tariff as re-
quired by section 40501 of this title and a bond, insurance, or other 
surety as required by section 40902 of this title, or with an affiliate 
of such an ocean transportation intermediary. 
‘‘§ 41105. Concerted action 
‘‘A conference or group of two or more common carriers may not—
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‘‘(1) boycott or take any other concerted action resulting in an un-
reasonable refusal to deal; 
‘‘(2) engage in conduct that unreasonably restricts the use of inter-
modal services or technological innovations; 
‘‘(3) engage in any predatory practice designed to eliminate the par-
ticipation, or deny the entry, in a particular trade of a common carrier 
not a member of the conference, a group of common carriers, an ocean 
tramp, or a bulk carrier; 
‘‘(4) negotiate with a non-ocean carrier or group of non-ocean car-
riers (such as truck, rail, or air operators) on any matter relating to 
rates or services provided to ocean common carriers within the United 
States by those non-ocean carriers, unless the negotiations and any re-
sulting agreements are not in violation of the antitrust laws and are 
consistent with the purposes of this part, except that this clause does 
not prohibit the setting and publishing of a joint through rate by a con-
ference, joint venture, or association of ocean common carriers; 
‘‘(5) deny in the export foreign commerce of the United States com-
pensation to an ocean freight forwarder or limit that compensation to 
less than a reasonable amount; 
‘‘(6) allocate shippers among specific carriers that are parties to the 
agreement or prohibit a carrier that is a party to the agreement from 
soliciting cargo from a particular shipper, except as— 
‘‘(A) authorized by section 40303(d) of this title; 
‘‘(B) required by the law of the United States or the importing 
or exporting country; or 
‘‘(C) agreed to by a shipper in a service contract; 
‘‘(7) for service pursuant to a service contract, engage in any un-
justly discriminatory practice in the matter of rates or charges with re-
spect to any locality, port, or person due to the person’s status as a 
shippers’ association or ocean transportation intermediary; or 
‘‘(8) for service pursuant to a service contract, give any undue or 
unreasonable preference or advantage or impose any undue or unrea-
sonable prejudice or disadvantage with respect to any locality, port, or 
person due to the person’s status as a shippers’ association or ocean 
transportation intermediary. 
‘‘§ 41106. Marine terminal operators 
‘‘A marine terminal operator may not— 
‘‘(1) agree with another marine terminal operator or with a common 
carrier to boycott, or unreasonably discriminate in the provision of ter-
minal services to, a common carrier or ocean tramp;
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‘‘(2) give any undue or unreasonable preference or advantage or im-
pose any undue or unreasonable prejudice or disadvantage with respect 
to any person; or 
‘‘(3) unreasonably refuse to deal or negotiate. 
‘‘§ 41107. Monetary penalties 
‘‘(a) IN GENERAL.—A person that violates this part or a regulation or 
order of the Federal Maritime Commission issued under this part is liable 
to the United States Government for a civil penalty. Unless otherwise pro-
vided in this part, the amount of the penalty may not exceed $5,000 for 
each violation or, if the violation was willfully and knowingly committed, 
$25,000 for each violation. Each day of a continuing violation is a separate 
violation. 
‘‘(b) LIEN ON CARRIER’S VESSELS.—The amount of a civil penalty im-
posed on a common carrier under this section constitutes a lien on the ves-
sels operated by the carrier. Any such vessel is subject to an action in rem 
to enforce the lien in the district court of the United States for the district 
in which it is found. 
‘‘§ 41108. Additional penalties 
‘‘(a) SUSPENSION OF TARIFFS.—For a violation of section 41104(1), (2), 
or (7) of this title, the Federal Maritime Commission may suspend any or 
all tariffs of the common carrier, or that common carrier’s right to use any 
or all tariffs of conferences of which it is a member, for a period not to 
exceed 12 months. 
‘‘(b) OPERATING UNDER SUSPENDED TARIFF.—A common carrier that 
accepts or handles cargo for carriage under a tariff that has been sus-
pended, or after its right to use that tariff has been suspended, is liable 
to the United States Government for a civil penalty of not more than 
$50,000 for each shipment. 
‘‘(c) FAILURE TO PROVIDE INFORMATION.— 
‘‘(1) PENALTIES.—If the Commission finds, after notice and oppor-
tunity for a hearing, that a common carrier has failed to supply infor-
mation ordered to be produced or compelled by subpoena under section 
41303 of this title, the Commission may— 
‘‘(A) suspend any or all tariffs of the carrier or the carrier’s 
right to use any or all tariffs of conferences of which it is a mem-
ber; and 
‘‘(B) request the Secretary of Homeland Security to refuse or 
revoke any clearance required for a vessel operated by the carrier, 
and when so requested, the Secretary shall refuse or revoke the 
clearance.
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‘‘(2) DEFENSE BASED ON FOREIGN LAW.—If, in defense of its fail-
ure to comply with a subpoena or discovery order, a common carrier 
alleges that information or documents located in a foreign country can-
not be produced because of the laws of that country, the Commission 
shall immediately notify the Secretary of State of the failure to comply 
and of the allegation relating to foreign laws. On receiving the notifica-
tion, the Secretary of State shall promptly consult with the government 
of the nation within which the information or documents are alleged 
to be located for the purpose of assisting the Commission in obtaining 
the information or documents. 
‘‘(d) IMPAIRING ACCESS TO FOREIGN TRADE.—If the Commission finds, 
after notice and opportunity for a hearing, that the action of a common car-
rier, acting alone or in concert with another person, or a foreign government 
has unduly impaired access of a vessel documented under the laws of the 
United States to ocean trade between foreign ports, the Commission shall 
take action that it finds appropriate, including imposing any of the penalties 
authorized by this section. The Commission also may take any of the actions 
authorized by sections 42304 and 42305 of this title. 
‘‘(e) SUBMISSION OF ORDER TO PRESIDENT.—Before an order under this 
section becomes effective, it shall be submitted immediately to the President. 
The President, within 10 days after receiving it, may disapprove it if the 
President finds that disapproval is required for reasons of national defense 
or foreign policy. 
‘‘§ 41109. Assessment of penalties 
‘‘(a) GENERAL AUTHORITY.—Until a matter is referred to the Attorney 
General, the Federal Maritime Commission may, after notice and oppor-
tunity for a hearing, assess a civil penalty provided for in this part. The 
Commission may compromise, modify, or remit, with or without conditions, 
a civil penalty. 
‘‘(b) FACTORS IN DETERMINING AMOUNT.—In determining the amount 
of a civil penalty, the Commission shall take into account the nature, cir-
cumstances, extent, and gravity of the violation committed and, with respect 
to the violator, the degree of culpability, history of prior offenses, ability to 
pay, and other matters justice may require. 
‘‘(c) EXCEPTION.—A civil penalty may not be imposed for conspiracy to 
violate section 41102(a) or 41104(1) or (2) of this title or to defraud the 
Commission by concealing such a violation. 
‘‘(d) PROHIBITED BASIS OF PENALTY.—The Commission or a court may 
not order a person to pay the difference between the amount billed and 
agreed upon in writing with a common carrier or its agent and the amount
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set forth in a tariff or service contract by that common carrier for the 
transportation service provided. 
‘‘(e) TIME LIMIT.—A proceeding to assess a civil penalty under this sec-
tion must be commenced within 5 years after the date of the violation. 
‘‘(f) REVIEW OF CIVIL PENALTY.—A person against whom a civil penalty 
is assessed under this section may obtain review under chapter 158 of title 
28. 
‘‘(g) CIVIL ACTIONS TO COLLECT.—If a person does not pay an assess-
ment of a civil penalty after it has become final or after the appropriate 
court has entered final judgment in favor of the Commission, the Attorney 
General at the request of the Commission may seek to collect the amount 
assessed in an appropriate district court of the United States. The court 
shall enforce the order of the Commission unless it finds that the order was 
not regularly made and duly issued. 
‘‘CHAPTER 413—ENFORCEMENT 
‘‘Sec. 
‘‘41301.
Complaints. 
‘‘41302.
Investigations. 
‘‘41303.
Discovery and subpoenas. 
‘‘41304.
Hearings and orders. 
‘‘41305.
Award of reparations. 
‘‘41306.
Injunctive relief sought by complainants. 
‘‘41307.
Injunctive relief sought by the Commission. 
‘‘41308.
Enforcement of subpoenas and orders. 
‘‘41309.
Enforcement of reparation orders. 
‘‘§ 41301. Complaints 
‘‘(a) IN GENERAL.—A person may file with the Federal Maritime Com-
mission a sworn complaint alleging a violation of this part, except section 
41307(b)(1). If the complaint is filed within 3 years after the claim accrues, 
the complainant may seek reparations for an injury to the complainant 
caused by the violation. 
‘‘(b) NOTICE AND RESPONSE.—The Commission shall provide a copy of 
the complaint to the person named in the complaint. Within a reasonable 
time specified by the Commission, the person shall satisfy the complaint or 
answer it in writing. 
‘‘(c) IF COMPLAINT NOT SATISFIED.—If the complaint is not satisfied, 
the Commission shall investigate the complaint in an appropriate manner 
and make an appropriate order. 
‘‘§ 41302. Investigations 
‘‘(a) IN GENERAL.—The Federal Maritime Commission, on complaint or 
its own motion, may investigate any conduct or agreement that the Commis-
sion believes may be in violation of this part. The Commission may by order 
disapprove, cancel, or modify any agreement that operates in violation of 
this part.
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‘‘(b) EFFECTIVENESS OF AGREEMENT DURING INVESTIGATION.—Unless 
an injunction is issued under section 41306 or 41307 of this title, an agree-
ment under investigation by the Commission remains in effect until the 
Commission issues its order. 
‘‘(c) DATE FOR DECISION.—Within 10 days after the initiation of a pro-
ceeding under this section or section 41301 of this title, the Commission 
shall set a date by which it will issue its final decision. The Commission 
by order may extend the date for good cause. 
‘‘(d) SANCTIONS FOR DELAY.—If, within the period for final decision 
under subsection (c), the Commission determines that it is unable to issue 
a final decision because of undue delay caused by a party to the proceeding, 
the Commission may impose sanctions, including issuing a decision adverse 
to the delaying party. 
‘‘(e) REPORT.—The Commission shall make a written report of every in-
vestigation under this part in which a hearing was held, stating its conclu-
sions, decisions, findings of fact, and order. The Commission shall provide 
a copy of the report to all parties and publish the report for public informa-
tion. A published report is competent evidence in a court of the United 
States. 
‘‘§ 41303. Discovery and subpoenas 
‘‘(a) IN GENERAL.—In an investigation or adjudicatory proceeding under 
this part— 
‘‘(1) the Federal Maritime Commission may subpoena witnesses and 
evidence; and 
‘‘(2) a party may use depositions, written interrogatories, and dis-
covery procedures under regulations prescribed by the Commission 
that, to the extent practicable, shall conform to the Federal Rules of 
Civil Procedure (28 App. U.S.C.). 
‘‘(b) WITNESS FEES.—Unless otherwise prohibited by law, a witness is 
entitled to the same fees and mileage as in the courts of the United States. 
‘‘§ 41304. Hearings and orders 
‘‘(a) OPPORTUNITY FOR HEARING.—The Federal Maritime Commission 
shall provide an opportunity for a hearing before issuing an order relating 
to a violation of this part or a regulation prescribed under this part. 
‘‘(b) MODIFICATION OF ORDER.—The Commission may reverse, suspend, 
or modify any of its orders. 
‘‘(c) REHEARING.—On application of a party to a proceeding, the Com-
mission may grant a rehearing of the same or any matter determined in 
the proceeding. Except by order of the Commission, a rehearing does not 
operate as a stay of an order.
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‘‘(d) PERIOD OF EFFECTIVENESS.—An order of the Commission remains 
in effect for the period specified in the order or until suspended, modified, 
or set aside by the Commission or a court of competent jurisdiction. 
‘‘§ 41305. Award of reparations 
‘‘(a) DEFINITION.—In this section, the term ‘actual injury’ includes the 
loss of interest at commercial rates compounded from the date of injury. 
‘‘(b) BASIC AMOUNT.—If the complaint was filed within the period speci-
fied in section 41301(a) of this title, the Federal Maritime Commission shall 
direct the payment of reparations to the complainant for actual injury 
caused by a violation of this part, plus reasonable attorney fees. 
‘‘(c) ADDITIONAL AMOUNTS.—On a showing that the injury was caused 
by an activity prohibited by section 41102(b), 41104(3) or (6), or 41105(1) 
or (3) of this title, the Commission may order the payment of additional 
amounts, but the total recovery of a complainant may not exceed twice the 
amount of the actual injury. 
‘‘(d) DIFFERENCE BETWEEN RATES.—If the injury was caused by an ac-
tivity prohibited by section 41104(4)(A) or (B) of this title, the amount of 
the injury shall be the difference between the rate paid by the injured ship-
per and the most favorable rate paid by another shipper. 
‘‘§ 41306. Injunctive relief sought by complainants 
‘‘(a) IN GENERAL.—After filing a complaint with the Federal Maritime 
Commission under section 41301 of this title, the complainant may bring 
a civil action in a district court of the United States to enjoin conduct in 
violation of this part. 
‘‘(b) VENUE.—The action must be brought in the judicial district in 
which— 
‘‘(1) the Commission has brought a civil action against the defendant 
under section 41307(a) of this title; or 
‘‘(2) the defendant resides or transacts business, if the Commission 
has not brought such an action. 
‘‘(c) REMEDIES BY COURT.—After notice to the defendant, and a showing 
that the standards for granting injunctive relief by courts of equity are met, 
the court may grant a temporary restraining order or preliminary injunction 
for a period not to exceed 10 days after the Commission has issued an order 
disposing of the complaint. 
‘‘(d) ATTORNEY FEES.—A defendant prevailing in a civil action under 
this section shall be allowed reasonable attorney fees to be assessed and col-
lected as part of the costs of the action. 
‘‘§ 41307. Injunctive relief sought by the Commission 
‘‘(a) GENERAL VIOLATIONS.—In connection with an investigation under 
section 41301 or 41302 of this title, the Federal Maritime Commission may
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bring a civil action to enjoin conduct in violation of this part. The action 
must be brought in the district court of the United States for any judicial 
district in which the defendant resides or transacts business. After notice 
to the defendant, and a showing that the standards for granting injunctive 
relief by courts of equity are met, the court may grant a temporary restrain-
ing order or preliminary injunction for a period not to exceed 10 days after 
the Commission has issued an order disposing of the issues under investiga-
tion. 
‘‘(b) REDUCTION IN COMPETITION.— 
‘‘(1) ACTION BY COMMISSION.—If, at any time after the filing or ef-
fective date of an agreement under chapter 403 of this title, the Com-
mission determines that the agreement is likely, by a reduction in com-
petition, to produce an unreasonable reduction in transportation service 
or an unreasonable increase in transportation cost, the Commission, 
after notice to the person filing the agreement, may bring a civil action 
in the United States District Court for the District of Columbia to en-
join the operation of the agreement. The Commission’s sole remedy 
with respect to an agreement likely to have such an effect is an action 
under this subsection. 
‘‘(2) REMEDIES BY COURT.—In an action under this subsection, the 
court may issue— 
‘‘(A) a temporary restraining order or a preliminary injunction; 
and 
‘‘(B) a permanent injunction after a showing that the agree-
ment is likely to have the effect described in paragraph (1). 
‘‘(3) BURDEN OF PROOF AND THIRD PARTIES.—In an action under 
this subsection, the burden of proof is on the Commission. The court 
may not allow a third party to intervene. 
‘‘(c) FAILURE TO PROVIDE INFORMATION.—If a person filing an agree-
ment, or an officer, director, partner, agent, or employee of the person, fails 
substantially to comply with a request for the submission of additional infor-
mation or documents within the period provided in section 40304(c) of this 
title, the Commission may bring a civil action in the United States District 
Court for the District of Columbia. At the request of the Commission, the 
Court— 
‘‘(1) may order compliance; 
‘‘(2) shall extend the period specified in section 40304(c)(2) of this 
title until there has been substantial compliance; and 
‘‘(3) may grant other equitable relief that the court decides is appro-
priate.
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‘‘(d) REPRESENTATION.—The Commission may represent itself in a pro-
ceeding under this section in— 
‘‘(1) a district court of the United States, on notice to the Attorney 
General; and 
‘‘(2) a court of appeals of the United States, with the approval of 
the Attorney General. 
‘‘§ 41308. Enforcement of subpoenas and orders 
‘‘(a) CIVIL ACTION.—If a person does not comply with a subpoena or 
order of the Federal Maritime Commission, the Attorney General, at the re-
quest of the Commission, or an injured party, may seek enforcement in a 
district court of the United States having jurisdiction over the parties. If, 
after hearing, the court determines that the subpoena or order was regularly 
made and duly issued, the court shall enforce the subpoena or order. 
‘‘(b) TIME LIMIT ON BRINGING ACTIONS.—An action under this section 
to enforce an order of the Commission must be brought within 3 years after 
the date the order was violated. 
‘‘§ 41309. Enforcement of reparation orders 
‘‘(a) CIVIL ACTION.—If a person does not comply with an order of the 
Federal Maritime Commission for the payment of reparation, the person to 
whom the award was made may seek enforcement of the order in a district 
court of the United States having jurisdiction over the parties. 
‘‘(b) PARTIES AND SERVICE OF PROCESS.—All parties in whose favor the 
Commission has made an award of reparation by a single order may be 
joined as plaintiffs, and all other parties in the order may be joined as de-
fendants, in a single action in a judicial district in which any one plaintiff 
could maintain an action against any one defendant. Service of process 
against a defendant not found in that district may be made in a district 
in which any office of that defendant is located or in which any port of call 
on a regular route operated by that defendant is located. Judgment may 
be entered for any plaintiff against the defendant liable to that plaintiff. 
‘‘(c) NATURE OF REVIEW.—In an action under this section, the findings 
and order of the Commission are prima facie evidence of the facts stated 
in the findings and order. 
‘‘(d) COSTS AND ATTORNEY FEES.—The plaintiff is not liable for costs 
of the action or for costs of any subsequent stage of the proceedings unless 
they accrue on the plaintiff’s appeal. A prevailing plaintiff shall be allowed 
reasonable attorney fees to be assessed and collected as part of the costs 
of the action. 
‘‘(e) TIME LIMIT ON BRINGING ACTIONS.—An action under this section 
to enforce an order of the Commission must be brought within 3 years after 
the date the order was violated.
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‘‘PART B—ACTIONS TO ADDRESS FOREIGN PRACTICES 
‘‘CHAPTER 421—REGULATIONS AFFECTING SHIPPING IN 
FOREIGN TRADE 
‘‘Sec. 
‘‘42101.
Regulations of the Commission. 
‘‘42102.
Regulations of other agencies. 
‘‘42103.
No preference to Government-owned vessels. 
‘‘42104.
Information, witnesses, and evidence. 
‘‘42105.
Disclosure to public. 
‘‘42106.
Other actions to remedy unfavorable conditions. 
‘‘42107.
Refusal of clearance and entry. 
‘‘42108.
Penalty for operating under suspended tariff or service contract. 
‘‘42109.
Consultation with other agencies. 
‘‘§ 42101. Regulations of the Commission 
‘‘(a) UNFAVORABLE CONDITIONS.—To further the objectives and policy 
set forth in section 50101 of this title, the Federal Maritime Commission 
shall prescribe regulations affecting shipping in foreign trade, not in conflict 
with law, to adjust or meet general or special conditions unfavorable to ship-
ping in foreign trade, whether in a particular trade or on a particular route 
or in commerce generally, including intermodal movements, terminal oper-
ations, cargo solicitation, agency services, ocean transportation intermediary 
services and operations, and other activities and services integral to trans-
portation systems, and which arise out of or result from laws or regulations 
of a foreign country or competitive methods, pricing practices, or other 
practices employed by owners, operators, agents, or masters of vessels of a 
foreign country. 
‘‘(b) INITIATION OF REGULATION.—A regulation under subsection (a) 
may be initiated by the Commission on its own motion or on the petition 
of any person, including another component of the United States Govern-
ment. 
‘‘§ 42102. Regulations of other agencies 
‘‘(a) REQUEST TO AGENCY.—To further the objectives and policy set 
forth in section 50101 of this title, the Federal Maritime Commission shall 
request the head of a department, agency, or instrumentality of the United 
States Government to suspend, modify, or annul any existing regulations, 
or to make new regulations, affecting shipping in the foreign trade, except 
regulations relating to the Public Health Service, the Consular Service, or 
the inspection of vessels. 
‘‘(b) PRIOR REVIEW AND APPROVAL.—A department, agency, or instru-
mentality of the Government may not prescribe a regulation affecting ship-
ping in the foreign trade (except a regulation affecting the Public Health 
Service, the Consular Service, or the inspection of vessels) until the regula-
tion has been submitted to the Commission for its approval and final action 
has been taken by the Commission or the President.
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‘‘(c) SUBMISSION TO PRESIDENT.—If the head of a department, agency, 
or instrumentality of the Government refuses to comply with a request 
under subsection (a) or objects to a decision of the Commission under sub-
section (b), the Commission or the head of the department, agency, or in-
strumentality may submit the facts to the President. The President may es-
tablish, suspend, modify, or annul the regulation. 
‘‘§ 42103. No preference to Government-owned vessels 
‘‘A regulation may not give a vessel owned by the United States Govern-
ment a preference over a vessel owned by citizens of the United States and 
documented under the laws of the United States. 
‘‘§ 42104. Information, witnesses, and evidence 
‘‘(a) ORDER TO SUPPLY INFORMATION.—In carrying out section 42101 
of this title, the Federal Maritime Commission may order any person (in-
cluding a common carrier, tramp operator, bulk operator, shipper, shippers’ 
association, ocean transportation intermediary, or marine terminal operator, 
or an officer, receiver, trustee, lessee, agent, or employee thereof) to file 
with the Commission a report, answers to questions, documentary material, 
or other information the Commission considers necessary or appropriate. 
The Commission may require the response to any such order to be made 
under oath. The response shall be provided in the form and within the time 
specified by the Commission. 
‘‘(b) SUBPOENAS AND DISCOVERY.—In carrying out section 42101 of this 
title, the Commission may— 
‘‘(1) subpoena witnesses and evidence; and 
‘‘(2) authorize a party to use depositions, written interrogatories, 
and discovery procedures that, to the extent practicable, conform to the 
Federal Rules of Civil Procedure (28 App. U.S.C.). 
‘‘(c) WITNESS FEES.—Unless otherwise prohibited by law, and subject to 
funds being appropriated, a witness in a proceeding under section 42101 
of this title is entitled to the same fees and mileage as in the courts of the 
United States. 
‘‘(d) PENALTIES.—For failure to supply information ordered to be pro-
duced or compelled by subpoena under this section, the Commission may— 
‘‘(1) after notice and opportunity for a hearing, suspend tariffs and 
service contracts of a common carrier or the common carrier’s right to 
use tariffs of conferences and service contracts of agreements of which 
it is a member; or 
‘‘(2) assess a civil penalty of not more than $5,000 for each day that 
the information is not provided. 
‘‘(e) ENFORCEMENT.—If a person does not comply with an order or sub-
poena of the Commission under this section, the Commission may seek en-
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forcement in a district court of the United States having jurisdiction over 
the parties. If, after hearing, the court determines that the order or sub-
poena was regularly made and duly issued, the court shall enforce the order 
or subpoena. 
‘‘§ 42105. Disclosure to public 
‘‘Notwithstanding any other provision of law, the Federal Maritime Com-
mission may refuse to disclose to the public a response or other information 
submitted to it under this chapter. 
‘‘§ 42106. Other actions to remedy unfavorable conditions 
‘‘If the Federal Maritime Commission finds that conditions unfavorable 
to shipping in foreign trade as described in section 42101 of this title exist, 
the Commission may— 
‘‘(1) limit voyages to and from United States ports or the amount 
or type of cargo carried; 
‘‘(2) suspend, in whole or in part, tariffs and service contracts for 
carriage to or from United States ports, including a common carrier’s 
right to use tariffs of conferences and service contracts of agreements 
in United States trades of which it is a member for any period the 
Commission specifies; 
‘‘(3) suspend, in whole or in part, an ocean common carrier’s right 
to operate under any agreement filed with the Commission, including 
any agreement authorizing preferential treatment at terminals, pref-
erential terminal leases, space chartering, or pooling of cargo or rev-
enue with other ocean common carriers; 
‘‘(4) impose a fee not to exceed $1,000,000 per voyage; or 
‘‘(5) take any other action the Commission finds necessary and ap-
propriate to adjust or meet any condition unfavorable to shipping in 
the foreign trade of the United States. 
‘‘§ 42107. Refusal of clearance and entry 
‘‘At the request of the Federal Maritime Commission— 
‘‘(1) the Secretary of Homeland Security shall— 
‘‘(A) refuse the clearance required by section 60105 of this title 
to a vessel of a country that is named in a regulation prescribed 
by the Commission under section 42101 of this title; and 
‘‘(B) collect any fees imposed by the Commission under section 
42106(4) of this title; and 
‘‘(2) the Secretary of the department in which the Coast Guard is 
operating shall— 
‘‘(A) deny entry, for purposes of oceanborne trade, of a vessel 
of a country that is named in a regulation prescribed by the Com-
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mission under section 42101 of this title, to a port or place in the 
United States or the navigable waters of the United States; or 
‘‘(B) detain the vessel at the port or place in the United States 
from which it is about to depart for another port or place in the 
United States. 
‘‘§ 42108. Penalty for operating under suspended tariff or 
service contract 
‘‘A common carrier that accepts or handles cargo for carriage under a 
tariff or service contract that has been suspended under section 42104(d)(1) 
or 42106(2) of this title, or after its right to use another tariff or service 
contract has been suspended under those provisions, is liable to the United 
States Government for a civil penalty of not more than $50,000 for each 
day that it is found to be operating under a suspended tariff or service con-
tract. 
‘‘§ 42109. Consultation with other agencies 
‘‘The Federal Maritime Commission may consult with, seek the coopera-
tion of, or make recommendations to other appropriate agencies of the 
United States Government prior to taking any action under this chapter. 
‘‘CHAPTER 423—FOREIGN SHIPPING PRACTICES 
‘‘Sec. 
‘‘42301.
Definitions. 
‘‘42302.
Investigations. 
‘‘42303.
Information requests. 
‘‘42304.
Action against foreign carriers. 
‘‘42305.
Refusal of clearance and entry. 
‘‘42306.
Submission of determinations to President. 
‘‘42307.
Review of regulations and orders. 
‘‘§ 42301. Definitions 
‘‘(a) DEFINED IN PART A.—In this chapter, the terms ‘common carrier’, 
‘marine terminal operator’, ‘ocean common carrier’, ‘ocean transportation 
intermediary’, ‘shipper’, and ‘shippers’ association’ have the meaning given 
those terms in section 40102 of this title. 
‘‘(b) OTHER DEFINITIONS.—In this chapter: 
‘‘(1) FOREIGN CARRIER.—The term ‘foreign carrier’ means an ocean 
common carrier a majority of whose vessels are documented under the 
laws of a foreign country. 
‘‘(2) MARITIME
SERVICES.—The term ‘maritime services’ means 
port-to-port transportation of cargo by vessels operated by an ocean 
common carrier. 
‘‘(3) MARITIME-RELATED
SERVICES.—The term ‘maritime-related 
services’ means intermodal operations, terminal operations, cargo solici-
tation, agency services, ocean transportation intermediary services and 
operations, and all other activities and services integral to total trans-
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portation systems of ocean common carriers and their foreign domiciled 
affiliates for themselves and others. 
‘‘(4) UNITED STATES CARRIER.—The term ‘United States carrier’ 
means an ocean common carrier operating vessels documented under 
the laws of the United States. 
‘‘(5) UNITED
STATES
OCEANBORNE
TRADE.—The term ‘United 
States oceanborne trade’ means the carriage of cargo between the 
United States and a foreign country, whether directly or indirectly, by 
an ocean common carrier. 
‘‘§ 42302. Investigations 
‘‘(a) IN GENERAL.—The Federal Maritime Commission shall investigate 
whether any laws, rules, regulations, policies, or practices of a foreign gov-
ernment, or any practices of a foreign carrier or other person providing 
maritime or maritime-related services in a foreign country, result in the ex-
istence of conditions that— 
‘‘(1) adversely affect the operations of United States carriers in 
United States oceanborne trade; and 
‘‘(2) do not exist for foreign carriers of that country in the United 
States under the laws of the United States or as a result of acts of 
United States carriers or other persons providing maritime or mari-
time-related services in the United States. 
‘‘(b) INITIATION OF INVESTIGATION.—An investigation under subsection 
(a) may be initiated by the Commission on its own motion or on the petition 
of any person, including another component of the United States Govern-
ment. 
‘‘(c) TIME FOR DECISION.—The Commission shall complete an investiga-
tion under this section and render a decision within 120 days after it is ini-
tiated. However, the Commission may extend this 120-day period for an ad-
ditional 90 days if the Commission is unable to obtain sufficient information 
to determine whether a condition specified in subsection (a) exists. A notice 
providing an extension shall state clearly the reasons for the extension. 
‘‘§ 42303. Information requests 
‘‘(a) IN GENERAL.—To further the purposes of section 42302(a) of this 
title, the Federal Maritime Commission may order any person (including a 
common carrier, shipper, shippers’ association, ocean transportation inter-
mediary, or marine terminal operator, or an officer, receiver, trustee, lessee, 
agent or employee thereof) to file with the Commission any periodic or spe-
cial report, answers to questions, documentary material, or other informa-
tion the Commission considers necessary or appropriate. The Commission 
may require the response to any such order to be made under oath. The
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response shall be provided in the form and within the time specified by the 
Commission. 
‘‘(b) SUBPOENAS.—In an investigation under section 42302 of this title, 
the Commission may subpoena witnesses and evidence. 
‘‘(c) NONDISCLOSURE.—Notwithstanding any other provision of law, the 
Commission may determine that any information submitted to it in response 
to a request under this section, or otherwise, shall not be disclosed to the 
public. 
‘‘§ 42304. Action against foreign carriers 
‘‘(a) IN GENERAL.—Subject to section 42306 of this title, whenever the 
Federal Maritime Commission, after notice and opportunity for comment or 
hearing, determines that the conditions specified in section 42302(a) of this 
title exist, the Commission shall take such action to offset those conditions 
as it considers necessary and appropriate against any foreign carrier that 
is a contributing cause, or whose government is a contributing cause, to 
those conditions. The action may include— 
‘‘(1) limitations on voyages to and from United States ports or on 
the amount or type of cargo carried; 
‘‘(2) suspension, in whole or in part, of any or all tariffs and service 
contracts, including an ocean common carrier’s right to use any or all 
tariffs and service contracts of conferences in United States trades of 
which it is a member for any period the Commission specifies; 
‘‘(3) suspension, in whole or in part, of an ocean common carrier’s 
right to operate under any agreement filed with the Commission, in-
cluding any agreement authorizing preferential treatment at terminals, 
preferential terminal leases, space chartering, or pooling of cargo or 
revenue with other ocean common carriers; and 
‘‘(4) a fee not to exceed $1,000,000 per voyage. 
‘‘(b) CONSULTATION.—The Commission may consult with, seek the co-
operation of, or make recommendations to other appropriate agencies of the 
United States Government prior to taking any action under subsection (a). 
‘‘§ 42305. Refusal of clearance and entry 
‘‘Subject to section 42306 of this title, whenever the Federal Maritime 
Commission determines that the conditions specified in section 42302(a) of 
this title exist, then at the request of the Commission— 
‘‘(1) the Secretary of Homeland Security shall refuse the clearance 
required by section 60105 of this title to a vessel of a foreign carrier 
that is identified by the Commission under section 42304 of this title; 
and 
‘‘(2) the Secretary of the department in which the Coast Guard is 
operating shall—
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‘‘(A) deny entry, for purposes of oceanborne trade, of a vessel 
of a foreign carrier that is identified by the Commission under sec-
tion 42304 of this title, to a port or place in the United States 
or the navigable waters of the United States; or 
‘‘(B) detain the vessel at the port or place in the United States 
from which it is about to depart for another port or place in the 
United States. 
‘‘§ 42306. Submission of determinations to President 
‘‘Before a determination under section 42304 of this title becomes effec-
tive or a request is made under section 42305 of this title, the determina-
tion shall be submitted immediately to the President. The President, within 
10 days after receiving it, may disapprove it in writing, setting forth the 
reasons for the disapproval, if the President finds that disapproval is re-
quired for reasons of national defense or foreign policy. 
‘‘§ 42307. Review of regulations and orders 
‘‘A regulation or final order of the Federal Maritime Commission under 
this chapter is reviewable exclusively in the same forum and in the same 
manner as provided in section 2342(3)(B) of title 28. 
‘‘PART C—MISCELLANEOUS 
‘‘CHAPTER 441—EVIDENCE OF FINANCIAL 
RESPONSIBILITY FOR PASSENGER TRANSPORTATION 
‘‘Sec. 
‘‘44101.
Application. 
‘‘44102.
Financial responsibility to indemnify passengers for nonperformance of transpor-
tation. 
‘‘44103.
Financial responsibility to pay liability for death or injury. 
‘‘44104.
Civil penalty. 
‘‘44105.
Refusal of clearance. 
‘‘44106.
Conduct of proceedings. 
‘‘§ 44101. Application 
‘‘This chapter applies to a vessel that— 
‘‘(1) has berth or stateroom accommodations for at least 50 pas-
sengers; and 
‘‘(2) boards passengers at a port in the United States. 
‘‘§ 44102. Financial responsibility to indemnify passengers 
for nonperformance of transportation 
‘‘(a) FILING REQUIREMENT.—A person in the United States may not ar-
range, offer, advertise, or provide transportation on a vessel to which this 
chapter applies unless the person has filed with the Federal Maritime Com-
mission evidence of financial responsibility to indemnify passengers for non-
performance of the transportation. 
‘‘(b) SATISFACTORY EVIDENCE.—To satisfy subsection (a), a person must 
file— 
‘‘(1) information the Commission considers necessary; or
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‘‘(2) a copy of a bond or other security, in such form as the Commis-
sion by regulation may require. 
‘‘(c) AUTHORIZED ISSUER OF BOND.—If a bond is filed, it must be 
issued by a bonding company authorized to do business in the United 
States. 
‘‘§ 44103. Financial responsibility to pay liability for death 
or injury 
‘‘(a) GENERAL REQUIREMENT.—The owner or charterer of a vessel to 
which this chapter applies shall establish, under regulations prescribed by 
the Federal Maritime Commission, financial responsibility to meet liability 
for death or injury to passengers or other individuals on a voyage to or from 
a port in the United States. 
‘‘(b) AMOUNTS.— 
‘‘(1) IN GENERAL.—The amount of financial responsibility required 
under subsection (a) shall be based on the number of passenger accom-
modations as follows: 
‘‘(A) $20,000 for each of the first 500 passenger accommoda-
tions. 
‘‘(B) $15,000 for each additional passenger accommodation be-
tween 501 and 1,000. 
‘‘(C) $10,000 for each additional passenger accommodation be-
tween 1,001 and 1,500. 
‘‘(D) $5,000 for each additional passenger accommodation over 
1,500. 
‘‘(2) MULTIPLE VESSELS.—If the owner or charterer is operating 
more than one vessel subject to this chapter, the amount of financial 
responsibility shall be based on the number of passenger accommoda-
tions on the vessel with the largest number of passenger accommoda-
tions. 
‘‘(c) AVAILABILITY TO PAY JUDGMENT.—The amount determined under 
subsection (b) shall be available to pay a judgment for damages (whether 
less than or more than $20,000) for death or injury to a passenger or other 
individual on a voyage to or from a port in the United States. 
‘‘(d) MEANS OF ESTABLISHING.—Financial responsibility under this sec-
tion may be established by one or more of the following if acceptable to the 
Commission: 
‘‘(1) Insurance. 
‘‘(2) Surety bond issued by a bonding company authorized to do 
business in the United States. 
‘‘(3) Qualification as a self-insurer. 
‘‘(4) Other evidence of financial responsibility.