II 
Calendar No. 594 
109TH CONGRESS 
2D SESSION 
H. R. 1442 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 17, 2005 
Received; read twice and referred to the Committee on the Judiciary 
SEPTEMBER 7 (legislative day, SEPTEMBER 6), 2006 
Reported by Mr. SPECTER, without amendment 
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. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1.
Table of contents. 
Sec. 2.
Purpose; conformity with original intent. 
Sec. 3.
Title analysis. 
Sec. 4.
Subtitle I of title 46. 
Sec. 5.
Subtitle II of title 46. 
Sec. 6.
Subtitle III of title 46. 
Sec. 7.
Subtitle IV of title 46. 
Sec. 8.
Subtitle V of title 46. 
Sec. 9.
Subtitle VI of title 46. 
Sec. 10.
Subtitle VII of title 46. 
Sec. 11.
Subtitle VIII of title 46. 
Sec. 12.
Maritime Administration. 
Sec. 13.
Amendments relating to Maritime Security Act of 2003. 
Sec. 14.
Amendments to partially restated provisions. 
Sec. 15.
Additional amendments to title 46. 
Sec. 16.
Recreational boating safety technical amendments. 
Sec. 17.
Conforming amendments to other laws. 
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Sec. 18.
Transitional and savings provisions. 
Sec. 19.
Repeals. 
SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT. 
(a) PURPOSE.—The purpose of this Act is to complete the codification 
of title 46, United States Code, ‘‘Shipping’’, as positive law, by reorganizing 
and restating the laws currently in the appendix to title 46. 
(b) CONFORMITY WITH ORIGINAL INTENT.—In the codification of laws 
by this Act, the intent is to conform to the understood policy, intent, and 
purpose of the Congress in the original enactments, with such amendments 
and corrections as will remove ambiguities, contradictions, and other imper-
fections, in accordance with section 205(c)(1) of House Resolution No. 988, 
93d Congress, as enacted into law by Public Law 93–554 (2 U.S.C. 
285b(1)). 
SEC. 3. 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. 4. 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 
bulk vessels of the United States to compete freely with foreign bulk vessels 
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in their operation or competition for charters, subject to regulations pre-
scribed 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 (or exempt from documentation 
under section 12102(c) 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.— 
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‘‘(1) COMPOSITION.—The Commission is composed of 5 Commis-
sioners, appointed by the President by and with the advice and consent 
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. 
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‘‘(d) SEAL.—The Commission shall have a seal which shall be judicially 
recognized. 
‘‘§ 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— 
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‘‘(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; 
‘‘(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. 
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‘‘§ 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 
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. 5. 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. 
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‘‘12137.
Recording of vessels built in the United States. 
‘‘12138.
List of documented vessels. 
‘‘12139.
Reports. 
‘‘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 
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‘‘(3) not documented under the laws of a foreign country. 
‘‘(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. 
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‘‘§ 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-
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 chapter 531 of this title. 
‘‘§ 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 subparagraph (A), or the exercise of rights under loan 
or mortgage covenants by a mortgagee eligible to be a preferred 
mortgagee under section 31322(a) of this title, except that a mort-
gagee not eligible to own a vessel with a fishery endorsement may 
only operate such a vessel to the extent necessary for the imme-
diate 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) SOLD FOREIGN OR PLACED UNDER FOREIGN REGISTRY.—A vessel 
of more than 200 gross tons (as measured under chapter 143 of this title), 
eligible to engage in the coastwise trade, and later sold foreign in whole or 
in part or placed under foreign registry may not thereafter engage in the 
coastwise trade. 
‘‘(b) REBUILT OUTSIDE THE UNITED STATES.—A vessel eligible to en-
gage in the coastwise trade and later rebuilt outside the United States may 
not thereafter engage in the coastwise trade. 
‘‘§ 12133. Duty to carry certificate on vessel and allow exam-
ination 
‘‘(a) DUTY TO CARRY.—The certificate of documentation of a vessel shall 
be carried on the vessel unless the vessel is exempt by regulation from 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. 
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‘‘(b) CONDITIONS FOR SURRENDER.— 
‘‘(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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