‘‘(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. 
‘‘(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 
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. 
‘‘(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. 
‘‘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. 
‘‘(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-
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-
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-
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 
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— 
‘‘(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 
‘‘(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. 
‘‘§ 44104. Civil penalty 
‘‘A person that violates section 44102 or 44103 of this title is liable to 
the United States Government for a civil penalty of not more than $5,000, 
plus $200 for each passage sold, to be assessed by the Federal Maritime 
Commission. The Commission may remit or mitigate the penalty on terms 
the Commission considers proper. 
‘‘§ 44105. Refusal of clearance 
‘‘The Secretary of Homeland Security shall refuse the clearance required 
by section 60105 of this title, at the port or place of departure from the 
United States, of a vessel that is subject to this chapter and does not have 
evidence issued by the Federal Maritime Commission of compliance with 
sections 44102 and 44103 of this title. 
‘‘§ 44106. Conduct of proceedings 
‘‘Part A of this subtitle applies to proceedings conducted by the Federal 
Maritime Commission under this chapter.’’. 
SEC. 8. SUBTITLE V OF TITLE 46. 
(a) SUBTITLE ANALYSIS.—The analysis of subtitle V of title 46, United 
States Code, is amended to read as follows: 
‘‘PART A—GENERAL 
‘‘Chapter 
Sec. 
‘‘501. Policy, Studies, and Reports .................................................................
50101 
‘‘503. Administrative ...........................................................................................
50301 
‘‘505. Other General Provisions ......................................................................
50501 
‘‘PART B—MERCHANT MARINE SERVICE 
‘‘511. General ..........................................................................................................
51101 
‘‘513. United States Merchant Marine Academy ......................................
51301
‘‘515. State Maritime Academy Support Program ...................................
51501 
‘‘517. Other Support for Merchant Marine Training ..............................
51701 
‘‘519. Merchant Marine Awards ......................................................................
51901 
‘‘521. Miscellaneous .............................................................................................
52101 
‘‘PART C—FINANCIAL ASSISTANCE PROGRAMS 
‘‘531. Maritime Security Fleet .........................................................................
53101 
‘‘533. Construction Reserve Funds ................................................................
53301 
‘‘535. Capital Construction Funds .................................................................
53501 
‘‘537. Loans and Guarantees ............................................................................
53701 
‘‘539. War Risk Insurance ..................................................................................
53901 
‘‘PART D—PROMOTIONAL PROGRAMS 
‘‘551. Coastwise Trade ........................................................................................
55101 
‘‘553. Passenger and Cargo Preferences ......................................................
55301 
‘‘555. Miscellaneous .............................................................................................
55501 
‘‘PART E—CONTROL OF MERCHANT MARINE CAPABILITIES 
‘‘561. Restrictions on Transfers ......................................................................
56101 
‘‘563. Emergency Acquisition of Vessels ......................................................
56301 
‘‘565. Essential Vessels Affected by Neutrality Act .................................
56501 
‘‘PART F—GOVERNMENT-OWNED MERCHANT VESSELS 
‘‘571. General Authority .....................................................................................
57101 
‘‘573. Vessel Trade-In Program .......................................................................
57301 
‘‘575. Construction, Charter, and Sale of Vessels ....................................
57501 
‘‘PART G—RESTRICTIONS AND PENALTIES 
‘‘581. Restrictions and Penalties ....................................................................
58101’’. 
(b) CHAPTERS PRECEDING CHAPTER 531.—Subtitle V of title 46, United 
States Code, is amended by inserting after the subtitle analysis the fol-
lowing: 
‘‘PART A—GENERAL 
‘‘CHAPTER 501—POLICY, STUDIES, AND REPORTS 
‘‘Sec. 
‘‘50101.
Objectives and policy. 
‘‘50102.
Survey of merchant marine. 
‘‘50103.
Determinations of essential services. 
‘‘50104.
Studies of general maritime problems. 
‘‘50105.
Studies and cooperation relating to the construction of vessels. 
‘‘50106.
Studies on the operation of vessels. 
‘‘50107.
Studies on marine insurance. 
‘‘50108.
Studies on cargo carriage and cargo containers. 
‘‘50109.
Miscellaneous studies. 
‘‘50110.
Securing preference to vessels of the United States. 
‘‘50111.
Reports to Congress. 
‘‘50112.
National Maritime Enhancement Institutes. 
‘‘50113.
Use and performance reports by operators of vessels. 
‘‘§ 50101. Objectives and policy 
‘‘(a) OBJECTIVES.—It is necessary for the national defense and the devel-
opment of the domestic and foreign commerce of the United States that the 
United States have a merchant marine— 
‘‘(1) sufficient to carry the waterborne domestic commerce and a 
substantial part of the waterborne export and import foreign commerce 
of the United States and to provide shipping service essential for main-
taining the flow of the waterborne domestic and foreign commerce at 
all times; 
‘‘(2) capable of serving as a naval and military auxiliary in time of 
war or national emergency; 
‘‘(3) owned and operated by citizens of the United States; 
‘‘(4) composed of the best-equipped, safest, and most suitable types 
of vessels, built in the United States, documented under chapter 121 
of this title, and manned with a trained and efficient citizen personnel; 
and 
‘‘(5) supplemented by efficient facilities for building and repairing 
vessels. 
‘‘(b) POLICY.—It is the policy of the United States to encourage and aid 
the development and maintenance of a merchant marine satisfying the ob-
jectives described in subsection (a). 
‘‘§ 50102. Survey of merchant marine 
‘‘(a) IN GENERAL.—The Secretary of Transportation shall survey the 
merchant marine of the United States to determine whether replacements 
and additions are required to carry out the objectives and policy of section 
50101 of this title. The Secretary shall study, perfect, and adopt a long- 
range program for replacements and additions that will result, as soon as 
practicable, in— 
‘‘(1) an adequate and well-balanced merchant fleet, including vessels 
of all types, that will provide shipping service essential for maintaining 
the flow of foreign commerce by vessels designed to be readily and 
quickly convertible into transport and supply vessels in a time of na-
tional emergency; 
‘‘(2) ownership and operation of the fleet by citizens of the United 
States insofar as practicable; 
‘‘(3) vessels designed to afford the best and most complete protection 
for passengers and crew against fire and all marine perils; and 
‘‘(4) an efficient capacity for building and repairing vessels in the 
United States with an adequate number of skilled personnel to provide 
an adequate mobilization base. 
‘‘(b) COOPERATION WITH SECRETARY OF NAVY.—In carrying out sub-
section (a)(1), the Secretary of Transportation shall cooperate closely with 
the Secretary of the Navy as to national defense requirements. 
‘‘§ 50103. Determinations of essential services 
‘‘(a) ESSENTIAL SERVICES, ROUTES, AND LINES.— 
‘‘(1) IN GENERAL.—The Secretary of Transportation shall inves-
tigate, determine, and keep current records of the ocean services, 
routes, and lines from ports in the United States, or in the territories
and possessions of the United States, to foreign markets, which the 
Secretary determines to be essential for the promotion, development, 
expansion, and maintenance of the foreign commerce of the United 
States. In making such a determination, the Secretary shall consider 
and give due weight to— 
‘‘(A) the cost of maintaining each line; 
‘‘(B) the probability that a line cannot be maintained except at 
a heavy loss disproportionate to the benefit to foreign trade; 
‘‘(C) the number of voyages and types of vessels that should be 
employed in a line; 
‘‘(D) the intangible benefit of maintaining a line to the foreign 
commerce of the United States, the national defense, and other 
national requirements; and 
‘‘(E) any other facts and conditions a prudent business person 
would consider when dealing with the person’s own business. 
‘‘(2) SAINT LAWRENCE SEAWAY.—For purposes of paragraph (1), 
the Secretary shall establish services, routes, and lines that reflect the 
seasonal closing of the Saint Lawrence Seaway and provide for alter-
nate routing of vessels through a different range of ports during that 
closing to maintain continuity of service on a year-round basis. 
‘‘(b) BULK CARGO CARRYING SERVICES.—The Secretary shall inves-
tigate, determine, and keep current records of the bulk cargo carrying serv-
ices that should be provided by United States documented vessels (whether 
or not operating on particular services, routes, or lines) for the promotion, 
development, expansion, and maintenance of the foreign commerce of the 
United States and the national defense or other national requirements. 
‘‘(c) TYPES OF VESSELS.—The Secretary shall investigate, determine, 
and keep current records of the type, size, speed, method of propulsion, and 
other requirements of the vessels, including express-liner or super-liner ves-
sels, that should be employed in— 
‘‘(1) the services, routes, or lines described in subsection (a), and the 
frequency and regularity of the voyages of the vessels, with a view to 
furnishing adequate, regular, certain, and permanent service; and 
‘‘(2) the bulk cargo carrying services described in subsection (b). 
‘‘§ 50104. Studies of general maritime problems 
‘‘The Secretary of Transportation shall study all maritime problems aris-
ing in carrying out the policy in section 50101 of this title. 
‘‘§ 50105. Studies and cooperation relating to the construc-
tion of vessels 
‘‘(a) RELATIVE COSTS AND NEW DESIGNS.—The Secretary of Transpor-
tation shall investigate, determine, and keep current records of—
‘‘(1) the relative cost of construction of comparable vessels in the 
United States and in foreign countries; and 
‘‘(2) new designs, new methods of construction, and new types of 
equipment for vessels. 
‘‘(b) RULES, CLASSIFICATIONS, AND RATINGS.—The Secretary shall ex-
amine the rules under which vessels are constructed abroad and in the 
United States and the methods of classifying and rating the vessels. 
‘‘(c) COLLABORATION WITH OWNERS AND BUILDERS.—The Secretary 
shall collaborate with vessel owners and shipbuilders in developing plans for 
the economical construction of vessels and their propelling machinery, of 
most modern economical types, giving thorough consideration to all well-rec-
ognized means of propulsion and taking into account the benefits from 
standardized production where practicable and desirable. 
‘‘(d) EXPRESS-LINER AND SUPER-LINER VESSELS.—The Secretary shall 
study and cooperate with vessel owners in devising means by which there 
may be constructed, by or with the aid of the United States Government, 
express-liner or super-liner vessels comparable to those of other nations, es-
pecially with a view to their use in a national emergency, and the use of 
transoceanic aircraft service in connection with or in lieu of those vessels. 
‘‘§ 50106. Studies on the operation of vessels 
‘‘(a) RELATIVE COSTS.—The Secretary of Transportation shall inves-
tigate, determine, and keep current records of the relative cost of marine 
insurance, maintenance, repairs, wages and subsistence of officers and 
crews, and all other items of expense, in the operation of comparable vessels 
under the laws and regulations of the United States and those of the foreign 
countries whose vessels are substantial competitors of American vessels. 
‘‘(b) SHIPYARDS.—The Secretary shall investigate, determine, and keep 
current records of the number, location, and efficiency of shipyards in the 
United States. 
‘‘(c) NAVIGATION LAWS.—The Secretary shall examine the navigation 
laws and regulations of the United States and make such recommendations 
to Congress as the Secretary considers proper for the amendment, improve-
ment, and revision of those laws and for the development of the merchant 
marine of the United States. 
‘‘§ 50107. Studies on marine insurance 
‘‘The Secretary of Transportation shall— 
‘‘(1) examine into the subject of marine insurance, the number of 
companies in the United States, domestic and foreign, engaging in ma-
rine insurance, the extent of the insurance on hulls and cargoes placed 
or written in the United States, and the extent of reinsurance of Amer-
ican maritime risks in foreign companies; and
‘‘(2) ascertain what steps may be necessary to develop an ample ma-
rine insurance system as an aid in the development of the merchant 
marine of the United States. 
‘‘§ 50108. Studies on cargo carriage and cargo containers 
‘‘(a) STUDIES.—The Secretary of Transportation shall study— 
‘‘(1) the methods of encouraging the development and implementa-
tion of new concepts for the carriage of cargo in the domestic and for-
eign commerce of the United States; and 
‘‘(2) the economic and technological aspects of the use of cargo con-
tainers as a method of carrying out the policy in section 50101 of this 
title. 
‘‘(b) RESTRICTION.—In carrying out subsection (a) and the policy in sec-
tion 50101 of this title, the United States Government may not give pref-
erence as between carriers based on the length, height, or width of cargo 
containers or the length, height, or width of cargo container cells. This re-
striction applies to all existing container vessels and any container vessel to 
be constructed or rebuilt. 
‘‘§ 50109. Miscellaneous studies 
‘‘(a) FOREIGN SUBSIDIES.—The Secretary of Transportation shall inves-
tigate, determine, and keep current records of the extent and character of 
the governmental aid and subsidies granted by foreign governments to their 
merchant marine. 
‘‘(b) LAWS APPLICABLE TO AIRCRAFT.—The Secretary shall investigate, 
determine, and keep current records of the provisions of law relating to 
shipping that should be made applicable to aircraft engaged in foreign com-
merce to further the policy in section 50101 of this title, and any appro-
priate legislation in this regard. 
‘‘(c) AID FOR COTTON, COAL, LUMBER, AND CEMENT.—The Secretary 
shall investigate, determine, and keep current records of the advisability of 
enactment of suitable legislation authorizing the Secretary, in an economic 
or commercial emergency, to aid farmers and producers of cotton, coal, lum-
ber, and cement in any section of the United States in the transportation 
and landing of their products in any foreign port, which products can be 
carried in dry-cargo vessels by reducing rates, by supplying additional ton-
nage to any American operator, or by operation of vessels directly by the 
Secretary, until the Secretary considers the special rate reduction and oper-
ation unnecessary for the benefit of those farmers and producers. 
‘‘(d) INTERCOASTAL AND INLAND WATER TRANSPORTATION.—The Sec-
retary shall investigate, determine, and keep current records of intercoastal 
and inland water transportation, including their relation to transportation 
by land and air.
‘‘(e) OBSOLETE TONNAGE AND TRAMP SERVICE.—The Secretary shall 
make studies and reports to Congress on— 
‘‘(1) the scrapping or removal from service of old or obsolete mer-
chant tonnage owned by the United States Government or in use in 
the merchant marine; and 
‘‘(2) tramp shipping service and the advisability of citizens of the 
United States participating in that service with vessels under United 
States registry. 
‘‘(f) MORTGAGE LOANS.—The Secretary shall investigate the legal status 
of mortgage loans on vessel property, with a view to the means of improving 
the security of those loans and of encouraging investment in American ship-
ping. 
‘‘§ 50110. Securing preference to vessels of the United States 
‘‘(a) POSSIBILITIES OF PROMOTING CARRIAGE.—The Secretary of Trans-
portation shall investigate, determine, and keep current records of the possi-
bilities of promoting the carriage of United States foreign trade in vessels 
of the United States. 
‘‘(b) INDUCEMENTS TO IMPORTERS AND EXPORTERS.—The Secretary 
shall study and cooperate with vessel owners in devising means by which 
the importers and exporters of the United States can be induced to give 
preference to vessels of the United States. 
‘‘(c) LIAISON WITH AGENCIES
AND ORGANIZATIONS.—The Secretary 
shall establish and maintain liaison with such other agencies of the United 
States Government, and with such representative trade organizations 
throughout the United States, as may be concerned, directly or indirectly, 
with any movement of commodities in the waterborne export and import for-
eign commerce of the United States, for the purpose of securing preference 
to vessels of the United States in the shipment of those commodities. 
‘‘§ 50111. Reports to Congress 
‘‘(a) IN GENERAL.—Not later than April 1 of each year, the Secretary 
of Transportation shall submit a report to Congress. The report shall in-
clude, with respect to activities of the Secretary under this subtitle, the re-
sults of investigations, a summary of transactions, a statement of all ex-
penditures and receipts, the purposes for which all expenditures were made, 
and any recommendations for legislation. 
‘‘(b) ADMINISTERED AND OVERSIGHT FUNDS.—The Secretary, in the re-
port under subsection (a) and in the annual budget estimate for the Mari-
time Administration submitted to Congress, shall state separately the 
amount, source, intended use, and nature of any funds (other than funds 
appropriated to the Administration or to the Secretary of Transportation
for use by the Administration) administered, or subject to oversight, by the 
Administration. 
‘‘(c) ADDITIONAL RECOMMENDATIONS
FOR LEGISLATION.—The Sec-
retary, from time to time, shall make recommendations to Congress for leg-
islation the Secretary considers necessary to better achieve the objectives 
and policy of section 50101 of this title. 
‘‘§ 50112. National Maritime Enhancement Institutes 
‘‘(a) DESIGNATION.—The Secretary of Transportation may designate Na-
tional Maritime Enhancement Institutes. 
‘‘(b) ACTIVITIES.—Activities undertaken by an institute may include— 
‘‘(1) conducting research about methods to improve the performance 
of maritime industries; 
‘‘(2) enhancing the competitiveness of domestic maritime industries 
in international trade; 
‘‘(3) forecasting trends in maritime trade; 
‘‘(4) assessing technological advancements; 
‘‘(5) developing management initiatives and training; 
‘‘(6) analyzing economic and operational impacts of regulatory poli-
cies and international negotiations or agreements pending before inter-
national bodies; 
‘‘(7) assessing the compatibility of domestic maritime infrastructure 
systems with overseas transport systems; 
‘‘(8) fostering innovations in maritime transportation pricing; and 
‘‘(9) improving maritime economics and finance. 
‘‘(c) APPLICATION FOR DESIGNATION.—An institution seeking designa-
tion as a National Maritime Enhancement Institute shall submit an applica-
tion under regulations prescribed by the Secretary. 
‘‘(d) CRITERIA FOR DESIGNATION.—The Secretary shall designate an in-
stitute under this section on the basis of the following criteria: 
‘‘(1) The demonstrated research and extension resources available to 
the applicant for carrying out the activities specified in subsection (b). 
‘‘(2) The ability of the applicant to provide leadership in making na-
tional and regional contributions to the solution of both long-range and 
immediate problems of the domestic maritime industry. 
‘‘(3) The existence of an established program of the applicant encom-
passing research and training directed to enhancing maritime indus-
tries. 
‘‘(4) The demonstrated ability of the applicant to assemble and 
evaluate pertinent information from national and international sources 
and to disseminate results of maritime industry research and edu-
cational programs through a continuing education program.