135
structed in a Shipbuilding Agreement Party or
in the United States,’’.
(ii) Paragraph (2)(A) is amended to
read as follows:
‘‘(A)(i) constructed in the United States
and, if reconstructed, reconstructed in the Unit-
ed States or in a Shipbuilding Agreement
Party, or
‘‘(ii) that is a Shipbuilding Agreement ves-
sel and is constructed in a Shipbuilding Agree-
ment Party and, if reconstructed, is recon-
structed in a Shipbuilding Agreement Party or
in the United States, but only with regard to
moneys deposited into the fund on or after the
date on which the Shipbuilding Trade Agree-
ment Act takes effect.’’.
(5) Section 610 (46 App. U.S.C. 1180) is
amended by striking ‘‘shall be built in a domestic
yard or shall have been documented under the laws
of the United States not later than February 1,
1928, or actually ordered and under construction for
the account of citizens of the United States prior to
such date,’’ and inserting ‘‘shall be built in the Unit-
ed States or, if the vessel is a Shipbuilding Agree-
ment vessel, in a Shipbuilding Agreement Party,’’.
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(6) 
Section 
901(b)(1) 
(46 
App. 
U.S.C.
1241(b)(1)) is amended by striking the third sen-
tence and inserting the following:
‘‘For purposes of this section, the term ‘privately owned
United States-flag commercial vessels’ shall be deemed to
include—
‘‘(A) any privately owned United States-flag
commercial vessel constructed in the United States,
and if rebuilt, rebuilt in the United States or in a
Shipbuilding Agreement Party on or after the date
on which the Shipbuilding Trade Agreement Act
takes effect, and
‘‘(B) any privately owned vessel constructed in
a Shipbuilding Agreement Party on or after the date
on which the Shipbuilding Trade Agreement Act
takes effect, and if rebuilt, rebuilt in a Shipbuilding
Agreement Party or in the United States, that is
documented pursuant to chapter 121 of title 46,
United States Code.
The term ‘privately owned United States-flag commercial
vessels’ shall also be deemed to include any cargo vessel
that so qualified pursuant to section 615 of this Act or
this paragraph before the date on which the Shipbuilding
Trade Agreement Act takes effect. The term ‘privately
owned United States-flag commercial vessels’ shall not be
137
deemed to include any liquid bulk cargo vessel that does
not meet the requirements of section 3703a of title 46,
United States Code.’’.
(7) Section 905 (46 App. U.S.C. 1244) is
amended by adding at the end the following:
‘‘(h) The term ‘Shipbuilding Agreement’ means the
Agreement Respecting Normal Competitive Conditions in
the Commercial Shipbuilding and Repair Industry, which
resulted from negotiations under the auspices of the Orga-
nization for Economic Cooperation and Development, and
was entered into on December 21, 1994.
‘‘(i) The term ‘Shipbuilding Agreement Party’ means
a state or separate customs territory that is a Party to
the Shipbuilding Agreement, and with respect to which the
United States applies the Shipbuilding Agreement.
‘‘(j) The term ‘Shipbuilding Agreement vessel’ means
a vessel to which the Secretary determines Article 2.1 of
the Shipbuilding Agreement applies.
‘‘(k) The term ‘Export Credit Understanding’ means
the Understanding on Export Credits for Ships which re-
sulted from negotiations under the auspices of the Organi-
zation for Economic Cooperation and Development and
was entered into on December 21, 1994.
138
‘‘(l) The term ‘Export Credit Understanding vessel’
means a vessel to which the Secretary determines the Ex-
port Credit Understanding applies.’’.
(8) Section 1104A (46 App. U.S.C. 1274) is
amended as follows:
(A) Paragraph (5) of subsection (b) is
amended to read as follows:
‘‘(5) shall bear interest (exclusive of charges for
the guarantee and service charges, if any) at rates
not to exceed such percent per annum on the unpaid
principal as the Secretary determines to be reason-
able, taking into account the range of interest rates
prevailing in the private market for similar loans
and the risks assumed by the Secretary, except that,
with respect to Export Credit Understanding vessels,
and Shipbuilding Agreement vessels, the obligations
shall bear interest at a rate the Secretary determines
to be consistent with obligations of the United
States under the Export Credit Understanding or
the Shipbuilding Agreement, as the case may be;’’.
(B) Subsection (i) is amended to read as
follows:
‘‘(i)(1) Except as provided in paragraph (2), the Sec-
retary may not, with respect to—
139
‘‘(A) the general 75 percent or less limitation
contained in subsection (b)(2),
‘‘(B) the 871⁄2 percent or less limitation con-
tained in the 1st, 2nd, 4th, or 5th proviso to sub-
section (b)(2) or in section 1112(b), or
‘‘(C) the 80 percent or less limitation in the 3rd
proviso to such subsection,
establish by rule, regulation, or procedure any percentage
within any such limitation that is, or is intended to be,
applied uniformly to all guarantees or commitments to
guarantee made under this section that are subject to the
limitation.
‘‘(2) With respect to Export Credit Understanding
vessels and Shipbuilding Agreement vessels, the Secretary
may establish by rule, regulation, or procedure a uniform
percentage that the Secretary determines to be consistent
with obligations of the United States under the Export
Credit Understanding or the Shipbuilding Agreement, as
the case may be.’’.
(C) Section 1104B(b) (46 App. U.S.C.
1274a(b)) is amended by striking the period at
the end and inserting the following:
‘‘, except that, with respect to Export Credit Understand-
ing vessels and Shipbuilding Agreement vessels, the Sec-
retary may establish by rule, regulation, or procedure a
140
uniform percentage that the Secretary determines to be
consistent with obligations of the United States under the
Export Credit Understanding or the Shipbuilding Agree-
ment, as the case may be.’’.
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