199 
‘‘§ 55336. Civil penalty 
‘‘After notice and an opportunity for a hearing, the Secretary of Trans-
portation may impose a civil penalty of not more than $1,000,000 on the 
owner of an American Great Lakes vessel for any act for which the designa-
tion may be revoked under section 55335 of this title. 
‘‘CHAPTER 555—MISCELLANEOUS 
‘‘Sec. 
‘‘55501.
Mobile trade fairs. 
‘‘§ 55501. Mobile trade fairs 
‘‘(a) IN GENERAL.—The Secretary of Commerce shall encourage and pro-
mote the development and use of mobile trade fairs designed to show and 
sell the products of United States business and agriculture at foreign ports 
and at other commercial centers throughout the world where the operators 
of the fairs use, insofar as practicable, vessels and aircraft of the United 
States in transporting their exhibits. 
‘‘(b) TECHNICAL AND FINANCIAL ASSISTANCE.—When the Secretary de-
termines that a mobile trade fair provides an economical and effective 
means of promoting export sales, the Secretary may provide to the operator 
of the fair— 
‘‘(1) technical assistance and support; and 
‘‘(2) financial assistance to defray certain expenses incurred outside 
the United States, except the cost of transportation on foreign vessels 
and aircraft. 
‘‘(c) USE OF FOREIGN CURRENCIES.—To carry out this section, the 
President may use, in addition to amounts appropriated to carry out trade 
promotion activities, foreign currencies owned by or owed to the United 
States Government. 
‘‘PART E—CONTROL OF MERCHANT MARINE CAPABILITIES 
‘‘CHAPTER 561—RESTRICTIONS ON TRANSFERS 
‘‘Sec. 
‘‘56101.
Approval required to transfer vessel to noncitizen. 
‘‘56102.
Additional controls during war or national emergency. 
‘‘56103.
Conditional approvals. 
‘‘56104.
Penalty for false statements. 
‘‘56105.
Forfeiture procedure. 
‘‘§ 56101. Approval required to transfer vessel to noncitizen 
‘‘(a) RESTRICTIONS.— 
‘‘(1) IN GENERAL.—Except as otherwise provided in this section, 
section 12119 of this title, or section 611 of the Merchant Marine Act, 
1936, a person may not, without the approval of the Secretary of 
Transportation— 
‘‘(A) sell, lease, charter, deliver, or in any other manner trans-
fer, or agree to sell, lease, charter, deliver, or in any other manner 
VerDate Aug 31 2005 
02:33 Sep 08, 2006
Jkt 049006
PO 00000
Frm 00199
Fmt 6652
Sfmt 6221
E:\BILLS\H1442.RS
H1442
pwalker on PRODPC60 with BILLS
200 
transfer, to a person not a citizen of the United States, an interest 
in or control of— 
‘‘(i) a documented vessel owned by a citizen of the United 
States; or 
‘‘(ii) a vessel last documented under the laws of the United 
States; or 
‘‘(B) place under foreign registry, or operate under the author-
ity of a foreign country, a documented vessel or a vessel last docu-
mented under the laws of the United States. 
‘‘(2) EXCEPTIONS.—Paragraph (1)(A) does not apply to a vessel 
that has been operated only for pleasure or only as a fishing vessel, 
fish processing vessel, or fish tender vessel (as defined in section 2101 
of this title). 
‘‘(b) APPROVAL BEFORE DOCUMENTATION.—To promote financing with 
respect to a vessel to be documented under chapter 121 of this title, the 
Secretary may grant approval under subsection (a) before the vessel is docu-
mented. 
‘‘(c) EXCEPTIONS.—Notwithstanding any other provision of this subtitle, 
the Merchant Marine Act, 1936, or any contract with the Secretary made 
under this subtitle or that Act, a person may place a vessel under foreign 
registry without the approval of the Secretary if— 
‘‘(1)(A) the Secretary, in conjunction with the Secretary of Defense, 
determines that at least one replacement vessel of equal or greater mili-
tary capability and of a capacity that is equivalent or greater, as meas-
ured by deadweight tons, gross tons, or container equivalent units, as 
appropriate, is documented under chapter 121 of this title by the owner 
of the vessel placed under foreign registry; and 
‘‘(B) the replacement vessel is not more than 10 years old on the 
date of that documentation; or 
‘‘(2) an operating agreement covering the vessel under chapter 531 
of this title has expired. 
‘‘(d) STATUS OF PROHIBITED TRANSACTION.—A charter, sale, or trans-
fer of a vessel, or of an interest in or control of a vessel, in violation of 
this section is void. 
‘‘(e) PENALTIES.— 
‘‘(1) CRIMINAL PENALTY.—A person that knowingly sells, charters, 
or transfers a vessel, or an interest in or control of a vessel, in violation 
of this section shall be fined under title 18, imprisoned for not more 
than 5 years, or both. 
‘‘(2) CIVIL PENALTY.—A person that sells, charters, or transfers a 
vessel, or an interest in or control of a vessel, in violation of this sec-
VerDate Aug 31 2005 
02:33 Sep 08, 2006
Jkt 049006
PO 00000
Frm 00200
Fmt 6652
Sfmt 6221
E:\BILLS\H1442.RS
H1442
pwalker on PRODPC60 with BILLS
201 
tion is liable to the United States Government for a civil penalty of 
not more than $10,000 for each violation. 
‘‘(3) FORFEITURE.—A documented vessel may be seized by and for-
feited to the Government if, in violation of this section, a person— 
‘‘(A) knowingly sells, charters, or transfers the vessel or an in-
terest in or control of the vessel; or 
‘‘(B) places the vessel under foreign registry or operates the 
vessel under the authority of a foreign country. 
‘‘§ 56102. Additional controls during war or national emer-
gency 
‘‘(a) IN GENERAL.—During war, or a national emergency declared by 
Presidential proclamation, a person may not, without the approval of the 
Secretary of Transportation— 
‘‘(1) place under foreign registry a vessel owned in whole or in part 
by a citizen of the United States or a corporation incorporated under 
the laws of the United States or of a State; 
‘‘(2) sell, mortgage, lease, charter, deliver, or in any other manner 
transfer, or agree to sell, mortgage, lease, charter, deliver, or in any 
other manner transfer, to a person not a citizen of the United States— 
‘‘(A) a vessel owned as described in paragraph (1), or an inter-
est therein; 
‘‘(B) a vessel documented under the laws of the United States, 
or an interest therein; or 
‘‘(C) a facility for building or repairing vessels, or an interest 
therein; 
‘‘(3) issue, assign, or transfer to a person not a citizen of the United 
States an instrument of indebtedness secured by a mortgage of a vessel 
to a trustee, by an assignment of an owner’s interest in a vessel under 
construction to a trustee, or by a mortgage of a facility for building 
or repairing vessels to a trustee, unless the trustee or a substitute 
trustee is approved by the Secretary under subsection (b); 
‘‘(4) enter into an agreement or understanding to construct a vessel 
in the United States for, or to be delivered to, a person not a citizen 
of the United States without expressly stipulating that construction will 
not begin until after the war or national emergency has ended; 
‘‘(5) enter into an agreement or understanding whereby there is vest-
ed in, or for the benefit of, a person not a citizen of the United States 
the controlling interest in a corporation that is incorporated under the 
laws of the United States or a State and that owns a vessel or facility 
for building or repairing vessels; or 
VerDate Aug 31 2005 
02:33 Sep 08, 2006
Jkt 049006
PO 00000
Frm 00201
Fmt 6652
Sfmt 6221
E:\BILLS\H1442.RS
H1442
pwalker on PRODPC60 with BILLS
202 
‘‘(6) cause or procure a vessel, constructed in whole or in part in 
the United States and never cleared for a foreign port, to depart from 
a port of the United States before it has been documented under the 
laws of the United States. 
‘‘(b) TRUSTEES.— 
‘‘(1) APPROVAL.—The Secretary shall approve a trustee or sub-
stitute trustee under subsection (a)(3) if and only if the trustee is a 
bank or trust company that— 
‘‘(A) is organized as a corporation, and is doing business, under 
the laws of the United States or a State; 
‘‘(B) is authorized under those laws to exercise corporate trust 
powers; 
‘‘(C) is a citizen of the United States; 
‘‘(D) is subject to supervision or examination by Federal or 
State authority; and 
‘‘(E) has a combined capital and surplus (as set forth in its 
most recent published report of condition) of at least $3,000,000. 
‘‘(2) DISAPPROVAL.—If a trustee or substitute trustee ceases to meet 
the conditions in paragraph (1), the Secretary shall disapprove the 
trustee or substitute trustee. After the disapproval, the restrictions on 
transfer or assignment without the Secretary’s approval in subsection 
(a)(3) apply. 
‘‘(3) OPERATION OF VESSEL.—During a period when subsection (a) 
applies, a trustee referred to in subsection (a)(3), even though ap-
proved as a trustee by the Secretary, may not operate the vessel under 
the mortgage or assignment without the Secretary’s approval. 
‘‘(c) STATUS OF PROHIBITED TRANSACTION.—A transaction in violation 
of this section is void. 
‘‘(d) RECOVERY OF CONSIDERATION.— 
‘‘(1) IN GENERAL.—A person that deposited or paid consideration in 
connection with a transaction prohibited by this section may recover 
the consideration after tender of the vessel, facility, stock, or other se-
curity, or interest therein, to the person entitled to it, or the forfeiture 
thereof to the United States Government. 
‘‘(2) EXCEPTION.—Paragraph (1) does not apply if the person in 
whose interest the consideration was deposited, or to whom it was paid, 
entered into the transaction in the belief that the person depositing or 
paying the consideration was a citizen of the United States. 
‘‘(e) PENALTIES.— 
VerDate Aug 31 2005 
02:33 Sep 08, 2006
Jkt 049006
PO 00000
Frm 00202
Fmt 6652
Sfmt 6221
E:\BILLS\H1442.RS
H1442
pwalker on PRODPC60 with BILLS