217 
‘‘§ 57517. Recovery of excess profits 
‘‘(a) IN GENERAL.—A charter under this chapter shall provide that if, 
at the end of a calendar year subsequent to the execution of the charter, 
the cumulative net voyage profit (after payment of the charter hire reserved 
in the charter and payment of the charterer’s fair and reasonable overhead 
expenses applicable to operation of the chartered vessel) exceeds 10 percent 
a year of the charterer’s capital necessarily employed in the business of the 
chartered vessel, the charterer shall pay to the Secretary of Transportation, 
as additional charter hire, half the cumulative net voyage profit in excess 
of 10 percent a year. However, any cumulative net voyage profit accounted 
for under this subsection is not to be included in the calculation of cumu-
lative net voyage profit in any subsequent year. 
‘‘(b) TERMS TO BE DEFINED AND USED.—The Secretary shall define the 
terms ‘net voyage profit’, ‘fair and reasonable overhead expenses’, and ‘cap-
ital necessarily employed’ for this section. Each advertisement for bids and 
each charter shall contain these definitions, stating the formula for deter-
mining each of these three amounts. 
‘‘§ 57518. Performance bond 
‘‘The Secretary of Transportation shall require a charterer of a vessel of 
the Secretary to deposit with the Secretary an undertaking, with approved 
sureties, in such amount as the Secretary may require as security for the 
faithful performance of the terms of the charter, including indemnity 
against liens on the chartered vessel. 
‘‘§ 57519. Insurance 
‘‘A charter under this chapter shall require the charterer to carry, at the 
charterer’s expense, insurance on the chartered vessel covering all marine 
and port risks, protection and indemnity risks, and all other hazards and 
liabilities, adequate to cover damages claimed against and losses sustained 
by the chartered vessel arising during the term of the charter. The insur-
ance shall be in such form, in such amount, and with such companies as 
the Secretary of Transportation may require. In accordance with law, any 
of the insurance risks may be underwritten by the Secretary. 
‘‘§ 57520. Vessel maintenance 
‘‘(a) IN GENERAL.—A charter under this chapter shall require the 
charterer, at the charterer’s expense, to— 
‘‘(1) keep the chartered vessel in good repair and efficient operating 
condition; and 
‘‘(2) make any repairs required by the Secretary of Transportation. 
‘‘(b) INSPECTION.—The charter shall provide that the Secretary has the 
right to inspect the vessel at any time to ascertain its condition.
218 
‘‘§ 57521. Termination of charter during national emergency 
‘‘A charter under this chapter shall provide that during a national emer-
gency proclaimed by the President or a period for which the President has 
proclaimed that the security of the national defense makes it advisable, the 
Secretary of Transportation may terminate the charter without cost to the 
United States Government on such notice to the charterer as the President 
determines. 
‘‘SUBCHAPTER III—MISCELLANEOUS 
‘‘§ 57531. Construction and charter of vessels for unsuccess-
ful routes 
‘‘(a) IN GENERAL.—If the Secretary of Transportation finds that a trade 
route determined to be essential under section 50103 of this title cannot be 
successfully developed and maintained and the Secretary’s replacement pro-
gram cannot be achieved under private operation of the trade route by a 
citizen of the United States with vessels documented under chapter 121 of 
this title, without further aid by the United States Government in addition 
to the financial aid authorized under titles V and VI of the Merchant Ma-
rine Act, 1936, the Secretary, without advertisement or competition, may— 
‘‘(1) have constructed, in private shipyards or in navy yards, vessels 
of the types necessary for the trade route; and 
‘‘(2) demise charter those new vessels to the operator of United 
States documented vessels established on the trade route. 
‘‘(b) AMOUNT OF CHARTER HIRE.— 
‘‘(1) IN GENERAL.—The annual charter hire under subsection (a) 
shall be at least 4 percent of the price (referred to in this section as 
the ‘foreign cost’) at which the vessel would be sold if constructed 
under title V of the Merchant Marine Act, 1936, plus— 
‘‘(A) a percentage of the depreciated foreign cost computed an-
nually determined by the Secretary of the Treasury, taking into 
consideration the current average market yield on outstanding 
marketable obligations of the Government with remaining periods 
to maturity comparable to the term of the charter, adjusted to the 
nearest one-eighth percent; and 
‘‘(B) an allowance adequate in the judgment of the Secretary 
of Transportation to cover administrative costs. 
‘‘(2) DEPRECIATION.—Depreciation under paragraph (1)(A) shall be 
based on— 
‘‘(A) a 25-year life for dry-cargo and passenger vessels; and 
‘‘(B) a 20-year life for tankers and other bulk liquid carrier ves-
sels.
219 
‘‘(c) OPTION TO PURCHASE.—The charter may contain an option to the 
charterer to purchase the vessels from the Secretary of Transportation with-
in 5 years after delivery under the charter, on the same terms and condi-
tions as provided in title V of the Merchant Marine Act, 1936, for the pur-
chase of new vessels from the Secretary. However— 
‘‘(1) the purchase price shall be the foreign cost less depreciation to 
the date of purchase based on the useful life specified in subsection 
(b)(2); 
‘‘(2) the required cash payment payable at the time of the purchase 
shall be 25 percent of the purchase price; 
‘‘(3) the charter may provide that any part of the charter hire paid 
in excess of the minimum charter hire provided for in this section may 
be credited against the cash payment payable at the time of the pur-
chase; 
‘‘(4) the balance of the purchase price shall be paid within the re-
maining years of useful life (as specified in subsection (b)(2)) after the 
date of delivery of the vessel under the charter and in approximately 
equal annual installments, except that the first installment, which shall 
be payable on the next ensuing anniversary date of the delivery under 
the charter, shall be a proportionate part of the annual installment; 
and 
‘‘(5) interest shall be payable on the unpaid balances from the date 
of purchase, at a rate not less than— 
‘‘(A) a rate determined by the Secretary of the Treasury, taking 
into consideration the current average market yield on outstanding 
marketable obligations of the Government with remaining periods 
to maturity comparable to the average maturities of the loans, ad-
justed to the nearest one-eighth percent; plus 
‘‘(B) an allowance adequate in the judgment of the Secretary 
of Transportation to cover administrative costs. 
‘‘(d) OPERATION OF VESSEL.— 
‘‘(1) PERMISSIBLE VOYAGES.—The charter shall provide for oper-
ation of the vessel exclusively— 
‘‘(A) in foreign trade; 
‘‘(B) on a round-the-world voyage; 
‘‘(C) on a round voyage from the west coast of the United 
States to a European port that includes an intercoastal port of the 
United States; 
‘‘(D) on a round voyage from the Atlantic coast of the United 
States to the Orient that includes an intercoastal port of the 
United States; or
220 
‘‘(E) on a voyage in foreign trade on which the vessel may stop 
at Hawaii or an island territory or possession of the United 
States. 
‘‘(2) DOMESTIC TRADE.—The charter shall provide if the vessel is 
operated in domestic trade on any of the services specified in para-
graph (1), the charterer will pay annually to the Secretary of Transpor-
tation that proportion of 1⁄25 of the difference between the domestic 
and foreign cost of the vessel as the gross revenue derived from the 
domestic trade bears to the gross revenue derived from the entire voy-
ages completed during the preceding year. 
‘‘§ 57532. Operation of experimental vessels 
‘‘(a) DEFINITION.—In this section, the term ‘experimental vessel’ means 
a vessel owned by the United States Government (including a vessel in the 
National Defense Reserve Fleet) that has been constructed, reconditioned, 
or remodeled for experimental or testing purposes. 
‘‘(b) AUTHORITY TO OPERATE.—The Secretary of Transportation, for 
the purpose of practical development, trial, and testing, may operate an ex-
perimental vessel under a bareboat charter or general agency agreement in 
the foreign or domestic trade of the United States or for use for the account 
of a department or agency of the Government, without regard to other pro-
visions of this subtitle and other laws related to chartering and general 
agency operations. Not more than 10 vessels may be operated and tested 
under this section in any one year. 
‘‘(c) TERMS OF OPERATION.—Operation of a vessel under this section 
shall be on terms the Secretary considers appropriate to carry out the pur-
poses of this subtitle. A bareboat charter under this section shall be at rea-
sonable rates and include restrictions the Secretary considers appropriate to 
protect the public interest, including provisions for recapture of profits 
under section 57517 of this title. A charter or general agency agreement 
under this section shall be reviewed annually to determine whether condi-
tions exist to justify continuance of the charter or agreement. 
‘‘(d) RIGHTS OF SEAMEN.—A seaman engaged in vessel operations of the 
Secretary under this section and employed through a general agent in con-
nection with a charter or agreement under this section is entitled to all the 
rights and remedies provided in sections 1(a) and (c), 3(c), and 4 of the 
Act of March 24, 1943 (50 App. U.S.C. 1291(a), (c), 1293(c), 1294). 
‘‘PART G—RESTRICTIONS AND PENALTIES 
‘‘CHAPTER 581—RESTRICTIONS AND PENALTIES 
‘‘Sec. 
‘‘58101.
Operating in domestic intercoastal or coastwise service. 
‘‘58102.
Default on payment or maintenance of reserves. 
‘‘58103.
Employing another person as managing or operating agent. 
‘‘58104.
Willful violation constitutes breach of contract or charter.
221 
‘‘58105.
Preferences for cargo in which charterer has interest. 
‘‘58106.
Concerted discriminatory activities. 
‘‘58107.
Discrimination at ports by water common carriers. 
‘‘58108.
Charges for transportation subject to subtitle IV of title 49. 
‘‘58109.
Penalties. 
‘‘§ 58101. Operating in domestic intercoastal or coastwise 
service 
‘‘(a) PROHIBITION.—A subsidy may not be awarded or paid to a con-
tractor under the operating-differential subsidy program, and a vessel may 
not be chartered to a person under chapter 575 of this title, if the con-
tractor or charterer, or a holding company, subsidiary, affiliate, or associate 
of the contractor or charterer, or an officer, director, agent, or executive 
thereof, directly or indirectly— 
‘‘(1) owns, charters, or operates a vessel engaged in the domestic 
intercoastal or coastwise service; or 
‘‘(2) owns a pecuniary interest in a person that owns, charters, or 
operates a vessel in the domestic intercoastal or coastwise service. 
‘‘(b) WAIVER.—A person may apply to the Secretary of Transportation 
for a waiver of subsection (a). Before deciding on the waiver, the Secretary 
shall give the applicant and other interested persons an opportunity for a 
hearing. The Secretary may not grant the waiver if the Secretary finds it 
would— 
‘‘(1) result in unfair competition to a person operating exclusively in 
the domestic intercoastal or coastwise service; or 
‘‘(2) be prejudicial to the objectives and policy of this subtitle. 
‘‘(c) CONTINUOUS OPERATION SINCE 1935.—The Secretary shall grant 
an application under subsection (b) without requiring further proof that the 
public interest and convenience will be served and without further pro-
ceedings as to the competition in the route or trade, if the contractor or 
other person, or a predecessor in interest, was in bona-fide operation as a 
common carrier by water in the domestic intercoastal or coastwise trade in 
1935 over the route or in the trade for which the application is made and 
has so operated since that time or, if engaged in furnishing seasonal service 
only, was in bona-fide operation in 1935 during the season ordinarily cov-
ered by its operation, except in either event as to interruptions of service 
over which the applicant or its predecessor in interest had no control. 
‘‘(d) DIVERSION INTO INTERCOASTAL OR COASTWISE OPERATIONS.—If 
an application under subsection (b) is approved, a person referred to in this 
section may not divert, directly or indirectly, money, property, or any other 
thing of value, used in a foreign-trade operation for which a subsidy is paid 
by the United States Government, into intercoastal or coastwise operations.
222 
‘‘§ 58102. Default on payment or maintenance of reserves 
‘‘The Secretary of Transportation may supervise the number and com-
pensation of all officers and employees of a contractor under the operating- 
differential subsidy program or a charterer under chapter 575 of this title, 
receiving an operating-differential subsidy, if the contractor or charterer— 
‘‘(1) is in default on a mortgage, note, purchase contract, or other 
obligation to the Secretary; or 
‘‘(2) has not maintained, in a manner satisfactory to the Secretary, 
all of the reserves provided for in this subtitle. 
‘‘§ 58103. Employing another person as managing or oper-
ating agent 
‘‘(a) PROHIBITION.—Except with the written consent of the Secretary of 
Transportation, a contractor holding a contract under the operating-dif-
ferential subsidy program or under chapter 575 of this title may not— 
‘‘(1) employ another person as the managing or operating agent of 
the operator; or 
‘‘(2) charter a vessel, on which an operating-differential subsidy is 
to be paid, for operation by another person. 
‘‘(b) APPLICABILITY OF PROVISIONS TO CHARTERER.—If a charter pro-
hibited by this section is made, the person operating the chartered vessel 
is subject to all the provisions of this subtitle and the operating-differential 
subsidy program, including limitations of profits and salaries. 
‘‘§ 58104. Willful violation constitutes breach of contract or 
charter 
‘‘A willful violation of any provision of sections 58101–58103 of this title 
constitutes a breach of the contract or charter. On determining that a viola-
tion has occurred, the Secretary of Transportation may declare the contract 
or charter rescinded. 
‘‘§ 58105. Preferences for cargo in which charterer has inter-
est 
‘‘A contractor receiving an operating-differential subsidy, or a charterer 
under chapter 575 of this title, may not unjustly discriminate in any man-
ner so as to give preference, directly or indirectly, to cargo in which the con-
tractor or charterer has a direct or indirect ownership, purchase, or vending 
interest. 
‘‘§ 58106. Concerted discriminatory activities 
‘‘(a) PROHIBITION.—A contractor receiving an operating-differential sub-
sidy, or a charterer under chapter 575 of this title, may not continue as 
a party to or conform to an agreement with another carrier by water, or 
engage in a practice in concert with another carrier by water, that is un-
justly discriminatory or unfair to any other citizen of the United States op-
223 
erating a common carrier by water employing only vessels documented 
under the laws of the United States on an established trade route from and 
to a United States port. 
‘‘(b) GOVERNMENT PAYMENT PROHIBITED.—No payment or subsidy of 
any kind may be paid, directly or indirectly, out of funds of the United 
States Government to a contractor or charterer that has violated subsection 
(a). 
‘‘(c) CIVIL ACTION.—A person whose business or property is injured by 
a violation of subsection (a) may bring a civil action in the district court 
of the United States for the district in which the defendant resides, is 
found, or has an agent. If the person prevails, the person shall be award-
ed— 
‘‘(1) 3 times the damages; and 
‘‘(2) costs, including reasonable attorney fees. 
‘‘§ 58107. Discrimination at ports by water common carriers 
‘‘(a) PROHIBITION.—A common carrier by water may not, directly or in-
directly, through an agreement, conference, association, understanding, or 
otherwise, prevent or attempt to prevent any other common carrier by water 
from serving any port described in subsection (b) at the same rates the first 
carrier charges at the nearest port already regularly served by it. 
‘‘(b) PORTS.—A port referred to in subsection (a) is one that is— 
‘‘(1) designed for the accommodation of ocean-going vessels; 
‘‘(2) located on an improvement project authorized by law or by a 
Federal agency; and 
‘‘(3) located within the continental limits of the United States. 
‘‘(c) OTHER AUTHORITY NOT LIMITED.—This section does not limit the 
authority otherwise vested in the Secretary of Transportation and the Fed-
eral Maritime Commission. 
‘‘§ 58108. Charges for transportation subject to subtitle IV of 
title 49 
‘‘(a) PROHIBITION.—A carrier may not charge, collect, or receive for 
transportation subject to subtitle IV of title 49 of persons or property, 
under any joint rate, fare, or charge, or under any export, import, or other 
proportional rate, fare, or charge, that is based in whole or in part on the 
fact that the persons or property affected are to be transported to, or have 
been transported from, a port in a territory or possession of the United 
States or in a foreign country, by a carrier by water in foreign commerce, 
any lower rate, fare, or charge than the carrier charges, collects, or receives 
for the transportation of persons or similar property for the same distance, 
in the same direction, and over the same route, in commerce wholly within 
the United States, unless the vessel used for the transportation is or was
224 
at the time of the transportation documented under the laws of the United 
States. 
‘‘(b) SUSPENSION OF PROHIBITION.—Whenever the Secretary of Trans-
portation believes that adequate shipping facilities to or from any port in 
a territory or possession of the United States or a foreign country are not 
being provided by vessels documented under the laws of the United States, 
the Secretary shall certify this fact to the Surface Transportation Board. 
On receiving the certification, the Board may by order suspend the oper-
ation of subsection (a) with respect to the rates, fares, and charges for the 
transportation by rail of persons and property transported from or to be 
transported to those ports, for such time and under such terms and condi-
tions as the Secretary may specify in the order or in any supplemental 
order. 
‘‘(c) TERMINATION OF SUSPENSION.—Whenever the Secretary believes 
that adequate shipping facilities are being provided to those ports by vessels 
documented under the laws of the United States, and certifies that fact to 
the Board, the Board may order the termination of the suspension. 
‘‘§ 58109. Penalties 
‘‘(a) INDIVIDUALS.—An individual convicted of violating section 
58101(d), 58103, or 58105 of this title shall be fined under title 18, impris-
oned for at least one year but not more than 5 years, or both. 
‘‘(b) ORGANIZATIONS.—An organization convicted of committing an act 
prohibited by this subtitle shall be fined under title 18. 
‘‘(c) INELIGIBILITY TO RECEIVE BENEFITS.—An individual or organiza-
tion convicted of violating a section referred to in subsection (a) is ineligible, 
at the discretion of the Secretary of Transportation, to receive any benefit 
under the construction-differential subsidy or operating-differential subsidy 
programs, or a charter under chapter 575 of this title, for 5 years after 
the conviction.’’. 
SEC. 9. SUBTITLE VI OF TITLE 46. 
(a) REDESIGNATION.—Title 46, United States Code, is amended by re-
designating subtitle VI as subtitle VII. 
(b) NEW SUBTITLE.—Title 46, United States Code, is amended by insert-
ing after subtitle V the following: 
‘‘Subtitle VI—Clearance, Tonnage Taxes, and 
Duties 
‘‘Chapter 
Sec. 
‘‘601. Arrival and Departure Requirements ...............................................
60101 
‘‘603. Tonnage Taxes and Light Money ........................................................
60301 
‘‘605. Discriminating Duties and Reciprocal Privileges ........................
60501
225 
‘‘CHAPTER 601—ARRIVAL AND DEPARTURE 
REQUIREMENTS 
‘‘Sec. 
‘‘60101.
Boarding arriving vessels before inspection. 
‘‘60102.
Production of certificate on entry. 
‘‘60103.
Oath of ownership on entry. 
‘‘60104.
Depositing certificates of documentation with consular officers. 
‘‘60105.
Clearance of vessels. 
‘‘60106.
State inspection laws. 
‘‘60107.
Payment of fees on departing vessel. 
‘‘60108.
Duty to transport tendered cargo. 
‘‘60109.
Duty to transport money and securities of the United States Government. 
‘‘§ 60101. Boarding arriving vessels before inspection 
‘‘(a) REGULATIONS.—The Secretary of Homeland Security shall prescribe 
and enforce regulations on the boarding of a vessel arriving at a port of 
the United States before the vessel has been inspected and secured. 
‘‘(b) CRIMINAL PENALTY.—A person violating a regulation prescribed 
under this section shall be fined under title 18, imprisoned for not more 
than 6 months, or both. 
‘‘(c) RELATIONSHIP TO OTHER LAW.—This section shall be construed as 
supplementary to section 2279 of title 18. 
‘‘§ 60102. Production of certificate on entry 
‘‘On entry of a vessel documented under chapter 121 of this title, the 
master or other individual in charge of the vessel shall produce the certifi-
cate of documentation to the customs officer at the place where the vessel 
is entered. If the certificate is not produced, the vessel is not entitled to 
the privileges of a documented vessel. 
‘‘§ 60103. Oath of ownership on entry 
‘‘(a) REQUIRED STATEMENT.—On entry of a vessel of the United States 
from a foreign port, the individual designated under subsection (b) shall 
state under oath that— 
‘‘(1) the vessel’s certificate of documentation contains the names of 
all the owners of the vessel; or 
‘‘(2) part of the ownership has been transferred since the certificate 
was issued and, to the best of the individual’s knowledge and belief, 
the vessel is still owned only by citizens of the United States. 
‘‘(b) PERSON TO MAKE STATEMENT.—The statement under subsection 
(a) shall be made by— 
‘‘(1) an owner if one resides at the port of entry; or 
‘‘(2) the master if an owner does not reside at the port of entry. 
‘‘(c) CONSEQUENCE OF NOT MAKING STATEMENT.—If the appropriate 
individual does not make the statement required by this section, the vessel 
is not entitled to the privileges of a vessel of the United States.
226 
‘‘§ 60104. Depositing certificates of documentation with con-
sular officers 
‘‘(a) REQUIREMENT OF MASTER.—When a vessel owned by citizens of the 
United States, on a voyage from a port in the United States, arrives at a 
foreign port, the master of the vessel shall deposit the vessel’s certificate 
of documentation with a consular officer at the foreign port if there is a 
consular officer at that port. 
‘‘(b) RETURN OF CERTIFICATE.—When the master produces a clearance 
from the appropriate officer of the foreign port, the consular officer shall 
return the certificate of documentation to the master if the master has com-
plied with the provisions of law related to the discharge of seamen in a for-
eign country and the payment of fees of consular officers. 
‘‘(c) CIVIL PENALTY AND COLLECTION.—The master of a vessel failing 
to deposit the certificate of documentation as required by subsection (a) is 
liable to the United States Government for a civil penalty of $500. The con-
sular officer shall bring an action to recover the penalty in any court of 
competent jurisdiction. The action shall be brought in the name of the con-
sular officer for the benefit of the United States. 
‘‘§ 60105. Clearance of vessels 
‘‘(a) VESSELS OF THE UNITED STATES.—Except as otherwise provided 
by law, a vessel of the United States shall obtain clearance from the Sec-
retary of Homeland Security before proceeding from a port or place in the 
United States— 
‘‘(1) for a foreign port or place; 
‘‘(2) for another port or place in the United States if the vessel has 
on board foreign merchandise for which entry has not been made; or 
‘‘(3) outside the territorial sea to visit a hovering vessel or to receive 
merchandise while outside the territorial sea. 
‘‘(b) OTHER VESSELS.—Except as otherwise provided by law, a vessel 
that is not a vessel of the United States shall obtain clearance from the Sec-
retary before proceeding from a port or place in the United States— 
‘‘(1) for a foreign port or place; 
‘‘(2) for another port or place in the United States; or 
‘‘(3) outside the territorial sea to visit a hovering vessel or to receive 
or deliver merchandise while outside the territorial sea. 
‘‘(c) REGULATIONS.—The Secretary may by regulation— 
‘‘(1) prescribe the manner in which clearance under this section is 
to be obtained, including the documents, data, or information which 
shall be submitted or transmitted, pursuant to an authorized data 
interchange system, to obtain the clearance;
227 
‘‘(2) permit clearance to be obtained before all requirements for 
clearance are complied with, but only if the owner or operator of the 
vessel files a bond in an amount set by the Secretary conditioned on 
the compliance by the owner or operator with all specified requirements 
for clearance within a time period (not exceeding 4 business days) es-
tablished by the Secretary; and 
‘‘(3) permit clearance to be obtained at a place other than a des-
ignated port of entry, under conditions the Secretary may prescribe. 
‘‘§ 60106. State inspection laws 
‘‘When State law requires a certificate of inspection for goods carried on 
a vessel, a vessel transporting the goods may not be cleared until the certifi-
cate is produced. 
‘‘§ 60107. Payment of fees on departing vessel 
‘‘A departing vessel may be cleared only when all legal fees that have ac-
crued on the vessel are paid and proof of payment is presented to the indi-
vidual granting the clearance. 
‘‘§ 60108. Duty to transport tendered cargo 
‘‘Clearance may be refused to a vessel or vehicle transporting cargo des-
tined for a domestic or foreign port when the owner, master, or other indi-
vidual in charge refuses to accept cargo tendered in good condition, with 
proper charges, for the same or an intermediate port by a citizen of the 
United States. This section does not apply if the vessel or vehicle is already 
fully loaded (giving appropriate consideration to its proper loading) or is not 
adaptable to transport the tendered cargo. 
‘‘§ 60109. Duty to transport money and securities of the 
United States Government 
‘‘Before being given clearance, a vessel owned by a citizen of the United 
States and bound on a voyage from a port in the United States to another 
port in the United States or in a foreign country, or on a voyage from a 
port in a foreign country to a port in the United States, shall receive on 
board any bullion, coin, notes, bonds, or other securities of the United 
States Government that an agency, consular officer, or other agent of the 
Government offers. The vessel shall transport the items securely and deliver 
them promptly to the proper authorities or consignees on arriving at the 
port of destination. Compensation shall be paid for services provided under 
this section that is equal to compensation paid to other carriers in the ordi-
nary transaction of business. 
‘‘CHAPTER 603—TONNAGE TAXES AND LIGHT MONEY 
‘‘Sec. 
‘‘60301.
Regular tonnage taxes. 
‘‘60302.
Special tonnage taxes. 
‘‘60303.
Light money. 
‘‘60304.
Presidential suspension of tonnage taxes and light money.
228 
‘‘60305.
Vessels in distress. 
‘‘60306.
Vessels not engaged in trade. 
‘‘60307.
Vessels engaged in coastwise trade or the fisheries. 
‘‘60308.
Vessels engaged in Great Lakes trade. 
‘‘60309.
Passenger vessels making trips between ports of the United States and foreign ports. 
‘‘60310.
Vessels making daily trips on interior waters. 
‘‘60311.
Hospital vessels in time of war. 
‘‘60312.
Rights under treaties preserved. 
‘‘§ 60301. Regular tonnage taxes 
‘‘(a) LOWER RATE.—A tax is imposed at the rate of 2 cents per ton (but 
not more than a total of 10 cents per ton per year) at each entry in a port 
of the United States of— 
‘‘(1) a vessel entering from a foreign port or place in North America, 
Central America, the West Indies Islands, the Bahama Islands, the 
Bermuda Islands, or the coast of South America bordering the Carib-
bean Sea; or 
‘‘(2) a vessel returning to the same port or place in the United 
States from which it departed, and not entering the United States from 
another port or place, except— 
‘‘(A) a vessel of the United States; 
‘‘(B) a recreational vessel (as defined in section 2101 of this 
title); or 
‘‘(C) a barge. 
‘‘(b) HIGHER RATE.—A tax is imposed at the rate of 6 cents per ton 
(but not more than a total of 30 cents per ton per year) on a vessel at each 
entry in a port of the United States from a foreign port or place not named 
in subsection (a)(1). 
‘‘(c) EXCEPTION FOR VESSELS ENTERING OTHER THAN BY SEA.—Sub-
section (a) does not apply to a vessel entering other than by sea from a 
foreign port or place at which tonnage, lighthouse, or other equivalent taxes 
are not imposed on vessels of the United States. 
‘‘§ 60302. Special tonnage taxes 
‘‘(a) ENTRY FROM FOREIGN PORT OR PLACE.—Regardless of whether a 
tax is imposed under section 60301 of this title, a tax is imposed on a vessel 
at each entry in a port of the United States from a foreign port or place 
at the following rates: 
‘‘(1) 30 cents per ton on a vessel built in the United States but 
owned in any part by a subject of a foreign country. 
‘‘(2) 50 cents per ton on other vessels not of the United States. 
‘‘(3) 50 cents per ton on a vessel of the United States having an 
officer who is not a citizen of the United States. 
‘‘(4) $2 per ton on a foreign vessel entering from a foreign port or 
place at which vessels of the United States are not ordinarily allowed 
to enter and trade.
229 
‘‘(b) VESSELS NOT OF THE UNITED STATES TRANSPORTING PROPERTY 
BETWEEN DISTRICTS.—Regardless of whether a tax is imposed under sec-
tion 60301 of this title, a tax of 50 cents per ton is imposed on a vessel 
not of the United States at each entry in one customs district from another 
district when transporting goods loaded in one district to be delivered in an-
other district. 
‘‘(c) EXCEPTION FOR VESSELS BECOMING DOCUMENTED.—The tax of 50 
cents per ton under this section does not apply to a vessel that— 
‘‘(1) is owned only by citizens of the United States; and 
‘‘(2) after entering a port of the United States, becomes documented 
as a vessel of the United States before leaving that port. 
‘‘§ 60303. Light money 
‘‘(a) IMPOSITION OF TAX.—A tax of 50 cents per ton, to be called ‘light 
money’, is imposed on a vessel not of the United States at each entry in 
a port of the United States. This tax shall be imposed and collected under 
the same regulations that apply to tonnage taxes. 
‘‘(b) EXCEPTION FOR VESSELS OWNED BY CITIZENS.— 
‘‘(1) IN GENERAL.—Subsection (a) does not apply to a vessel owned 
only by citizens of the United States if— 
‘‘(A) the vessel is carrying a regular document issued by a cus-
tomhouse of the United States proving the vessel to be owned only 
by citizens of the United States; and 
‘‘(B) on entry of the vessel from a foreign port, the individual 
designated under paragraph (2) states under oath that— 
‘‘(i) the document contains the names of all the owners of 
the vessel; or 
‘‘(ii) part of the ownership has been transferred since the 
document was issued and, to the best of that individual’s 
knowledge and belief, the vessel is still owned only by citizens 
of the United States. 
‘‘(2) PERSON TO MAKE STATEMENT.—The statement under para-
graph (1)(B) shall be made by— 
‘‘(A) an owner if one resides at the port of entry; or 
‘‘(B) the master if an owner does not reside at the port of 
entry. 
‘‘(c) EXCEPTION FOR VESSELS BECOMING DOCUMENTED.—Subsection 
(a) section does not apply to a vessel that— 
‘‘(1) is owned only by citizens of the United States; and 
‘‘(2) after entering a port of the United States, becomes documented 
as a vessel of the United States before leaving that port.
230 
‘‘§ 60304. Presidential suspension of tonnage taxes and light 
money 
‘‘If the President is satisfied that the government of a foreign country 
does not impose discriminating or countervailing duties to the disadvantage 
of the United States, the President shall suspend the imposition of special 
tonnage taxes and light money under sections 60302 and 60303 of this title 
on vessels of that country. 
‘‘§ 60305. Vessels in distress 
‘‘A vessel is exempt from tonnage taxes and light money when it enters 
because it is in distress. 
‘‘§ 60306. Vessels not engaged in trade 
‘‘A vessel is exempt from tonnage taxes and light money when not en-
gaged in trade. 
‘‘§ 60307. Vessels engaged in coastwise trade or the fisheries 
‘‘A vessel with a registry endorsement or a coastwise endorsement, trad-
ing from one port in the United States to another port in the United States 
or employed in the bank, whale, or other fisheries, is exempt from tonnage 
taxes and light money. 
‘‘§ 60308. Vessels engaged in Great Lakes trade 
‘‘A documented vessel with a registry endorsement, engaged in foreign 
trade on the Great Lakes or their tributary or connecting waters in trade 
with Canada, does not become subject to tonnage taxes or light money be-
cause of that trade. 
‘‘§ 60309. Passenger vessels making trips between ports of 
the United States and foreign ports 
‘‘A passenger vessel making at least 3 trips per week between a port of 
the United States and a foreign port is exempt from tonnage taxes and light 
money. 
‘‘§ 60310. Vessels making daily trips on interior waters 
‘‘A vessel making regular daily trips between a port of the United States 
and a port of Canada only on interior waters not navigable to the ocean 
is exempt from tonnage taxes and light money, except on its first clearing 
each year. 
‘‘§ 60311. Hospital vessels in time of war 
‘‘In time of war, a hospital vessel is exempt from tonnage taxes, light 
money, and pilotage charges in the ports of the United States if the vessel 
is one for which the conditions of the international convention for the ex-
emption of hospital ships from taxation in time of war, concluded at The 
Hague on December 21, 1904, are satisfied. The President by proclamation 
shall name the vessels for which the conditions are satisfied and state when 
the exemption begins and ends.
231 
‘‘§ 60312. Rights under treaties preserved 
‘‘This chapter and chapter 605 of this title do not affect a right or privi-
lege of a foreign country relating to tonnage taxes or other duties on vessels 
under a law or treaty of the United States. 
‘‘CHAPTER 605—DISCRIMINATING DUTIES AND 
RECIPROCAL PRIVILEGES 
‘‘Sec. 
‘‘60501.
Vessels allowed to import. 
‘‘60502.
Discriminating duty on goods imported in foreign vessels or from contiguous coun-
tries. 
‘‘60503.
Reciprocal suspension of discriminating duties. 
‘‘60504.
Reciprocal privileges for recreational vessels. 
‘‘60505.
Retaliatory suspension of commercial privileges. 
‘‘60506.
Retaliation against British dominions of North America. 
‘‘60507.
Suspension of free passage through Saint Marys Falls Canal. 
‘‘§ 60501. Vessels allowed to import 
‘‘(a) IN GENERAL.—Except as otherwise provided by treaty, goods may 
be imported into the United States from a foreign port or place only in— 
‘‘(1) a vessel of the United States; or 
‘‘(2) a foreign vessel owned only by citizens or subjects of the coun-
try— 
‘‘(A) in which the goods are grown, produced, or manufactured; 
or 
‘‘(B) from which the goods can only be, or most usually are, 
first shipped for transportation. 
‘‘(b) EXCEPTION FOR VESSELS OF COUNTRIES NOT MAINTAINING SIMI-
LAR RESTRICTIONS.—Subsection (a) does not apply to a vessel of a foreign 
country that does not maintain a similar restriction against United States 
documented vessels. 
‘‘(c) EXCEPTION FOR VESSELS BECOMING DOCUMENTED.—Subsection 
(a) does not apply to a vessel that— 
‘‘(1) is owned only by citizens of the United States; and 
‘‘(2) after entering a port of the United States, becomes documented 
as a vessel of the United States before leaving that port. 
‘‘(d) SEIZURE AND FORFEITURE.—If goods are imported in violation of 
this section, the goods and the vessel in which they are imported, along with 
its equipment and other cargo, may be seized by and forfeited to the United 
States Government. 
‘‘§ 60502. Discriminating duty on goods imported in foreign 
vessels or from contiguous countries 
‘‘(a) IMPOSITION OF DUTY.—A discriminating duty of 10 percent ad valo-
rem (in addition to other duties imposed by law) is imposed on goods— 
‘‘(1) imported in a vessel not of the United States unless the ves-
sel—
232 
‘‘(A) is entitled by law or treaty to enter the ports of the United 
States on payment of the same duties as are payable on goods im-
ported in a vessel of the United States; or 
‘‘(B)(i) is owned only by citizens of the United States; and 
‘‘(ii) after entering a port of the United States, becomes docu-
mented as a vessel of the United States before leaving that port; 
or 
‘‘(2) produced or manufactured in a foreign country not contiguous 
to the United States and imported from a country contiguous to the 
United States, unless imported in the usual course of strictly retail 
trade. 
‘‘(b) SEIZURE AND FORFEITURE.—If goods are imported without pay-
ment of the duty required by this section, the goods and the vessel in which 
they are imported may be seized by, and forfeited to, the United States Gov-
ernment. 
‘‘§ 60503. Reciprocal suspension of discriminating duties 
‘‘(a) GENERAL AUTHORITY.—On receiving satisfactory proof from the 
government of a foreign country that it has suspended, in any part, the im-
position of discriminating duties for any class of vessels owned by citizens 
of the United States or goods imported in those vessels, the President may 
proclaim a reciprocal suspension of discriminating duties for the same class 
of vessels owned by citizens of that country or goods imported in those ves-
sels. 
‘‘(b) EFFECTIVE AND EXPIRATION DATES.—A suspension under this sec-
tion takes effect retroactively from the date the President received the proof 
from the foreign government, and expires when that government stops 
granting the reciprocal suspension. 
‘‘§ 60504. Reciprocal privileges for recreational vessels 
‘‘When the President is satisfied that yachts owned by residents of the 
United States and used only for pleasure are allowed to arrive at, depart 
from, and cruise in the waters of a foreign port without entering, clearing, 
or paying any duties or fees (including cruising license fees), the Secretary 
of Homeland Security may allow yachts from that foreign port used only 
for pleasure to arrive at and depart from the ports of the United States 
and to cruise in the waters of the United States without paying any duties 
or fees. However, the Secretary may require foreign yachts to obtain a li-
cense to cruise in the waters of the United States. The license shall be in 
the form prescribed by the Secretary and contain limitations about length 
of time, direction, place of cruising and action, and other matters the Sec-
retary considers appropriate. The license shall be issued without cost to the 
yacht.
233 
‘‘§ 60505. Retaliatory suspension of commercial privileges 
‘‘(a) GENERAL AUTHORITY.—The President may proclaim a suspension 
of commercial privileges to vessels of a foreign country when— 
‘‘(1) vessels of that country have been given the same commercial 
privileges in the ports and waters of the United States given to vessels 
of the United States (except the privilege of engaging in coastwise com-
merce); and 
‘‘(2) vessels of the United States are denied commercial privileges in 
the ports or waters of that country given to vessels of that country. 
‘‘(b) APPLICATION.—A suspension under this section shall apply to the 
same commercial privileges denied to vessels of the United States in the 
ports or waters of the foreign country, and to the same class of vessels of 
that country as the class of vessels of the United States denied the privi-
leges. 
‘‘(c) EFFECTIVE DATE.—The President shall designate the effective date 
of the suspension in the proclamation. 
‘‘(d) PENALTIES.— 
‘‘(1) SEIZURE AND FORFEITURE.—If the master, officer, or agent of 
a vessel of a foreign country does an act for the vessel in the ports 
or waters of the United States in violation of a proclamation issued 
under this section, the vessel and the goods on the vessel may be seized 
by, and forfeited to, the United States Government. 
‘‘(2) FINE OR IMPRISONMENT.—A person opposing an official of the 
Government enforcing this section shall be fined under title 18, impris-
oned for not more than 2 years, or both. 
‘‘§ 60506. Retaliation against British dominions of North 
America 
‘‘(a) GENERAL AUTHORITY.—The President by proclamation may pro-
hibit vessels of the British dominions of North America, their masters and 
crews, and products of or coming from those dominions, from entering wa-
ters, ports, or places of the United States when the President is satisfied 
that— 
‘‘(1) fishermen or fishing vessels of the United States in waters, 
ports, or places of the British dominions of North America are being 
or recently have been— 
‘‘(A) denied rights provided by law or treaty; 
‘‘(B) subjected to unreasonable restrictions in the exercise of 
those rights; or 
‘‘(C) otherwise harassed; 
‘‘(2) fishermen or fishing vessels of the United States, having a per-
mit under the laws of the United States to dock or trade at a port
234 
or place in the British dominions of North America, are being or re-
cently have been— 
‘‘(A) denied the privilege of entering the port or place in the 
same manner and under the same regulations applicable to trading 
vessels of the most-favored-nation; 
‘‘(B) prevented from buying supplies allowed to be sold to trad-
ing vessels of the most-favored-nation; or 
‘‘(C) otherwise harassed; or 
‘‘(3) other vessels of the United States or their masters or crews in 
waters, ports, or places of the British dominions of North America are 
being or recently have been— 
‘‘(A) denied privileges given to vessels of the most-favored-na-
tion or their masters or crews; or 
‘‘(B) otherwise harassed. 
‘‘(b) COVERAGE AND EXCEPTIONS.—The President may apply a procla-
mation under this section to any of the subjects named, and may include 
exceptions for vessels in distress or need of supplies. The President may 
change, revoke, and renew the proclamation. 
‘‘(c) PENALTIES.—A person violating a proclamation issued under this 
section shall be fined under title 18, imprisoned for not more than 2 years, 
or both. A vessel or goods found in waters, ports, or places of the United 
States in violation of the proclamation may be seized by, and forfeited to, 
the United States Government. 
‘‘§ 60507. Suspension of free passage through Saint Marys 
Falls Canal 
‘‘(a) PURPOSE.—The purpose of this section is to secure reciprocal ad-
vantages for the citizens, ports, and vessels of the United States. 
‘‘(b) GENERAL AUTHORITY.—When the President is satisfied that vessels 
of the United States, or passengers or cargo being transported to a port 
of the United States, are prohibited from passing through a canal or lock 
connected with the navigation of the Saint Lawrence River, the Great 
Lakes, or their connecting waterways, or burdened in that passage by tolls 
or other means that are unreasonable in view of the free passage through 
the Saint Marys Falls Canal allowed to vessels of all countries, the Presi-
dent by proclamation may suspend the right of free passage through the 
Saint Marys Falls Canal for vessels owned by subjects of the country impos-
ing the prohibition, tolls, or other burdens and for passengers and cargo 
being transported to the ports of that country, even when carried in vessels 
of the United States. The suspension shall apply to the extent and for the 
time the President considers appropriate. 
‘‘(c) IMPOSITION OF TOLL.—
235 
‘‘(1) IN GENERAL.—During a suspension under this section, the 
President shall impose a toll of not more than $2 per ton on cargo and 
not more than $5 on each passenger. 
‘‘(2) EXCEPTIONS.—Notwithstanding paragraph (1), a toll may not 
be imposed on passengers or cargo landed at Ogdensburg, New York, 
or any port west of Ogdensburg and south of a line drawn from the 
northern boundary of New York through the Saint Lawrence River, the 
Great Lakes, and their connecting channels to the northern boundary 
of Minnesota. 
‘‘(d) COLLECTION OF TOLL.— 
‘‘(1) IN GENERAL.—A toll imposed under this section shall be col-
lected under regulations prescribed by the Secretary of Homeland Secu-
rity. The Secretary may require the master of a vessel to provide a 
sworn statement of the amount and kind of cargo, the number of pas-
sengers, and the destination of the passengers and cargo. 
‘‘(2) PROOF OF LANDING.—When applicable, the Secretary also may 
require satisfactory proof that the passengers and cargo were landed 
at a port described in subsection (c)(2). Until that proof is provided, 
the Secretary may assume the passengers and cargo were not landed 
at such a port, and the amount of a toll that otherwise would be im-
posed is a lien enforceable against the vessel when found in the waters 
of the United States.’’. 
SEC. 10. SUBTITLE VII OF TITLE 46. 
Subtitle VII of title 46, United States Code, as redesignated by section 
9(a) of this Act, is amended as follows: 
(1) The subtitle heading and analysis are amended to read as fol-
lows: 
‘‘Subtitle VII—Security and Drug Enforcement 
‘‘Chapter 
Sec.
‘‘701. Port Security ...............................................................................................
70101
‘‘703. Maritime Security .....................................................................................
70301
‘‘705. Maritime Drug Law Enforcement ......................................................
70501’’. 
(2) Add after chapter 701 the following: 
‘‘CHAPTER 703—MARITIME SECURITY 
‘‘Sec. 
‘‘70301.
Definitions. 
‘‘70302.
International measures for seaport and vessel security. 
‘‘70303.
Security standards at foreign ports. 
‘‘70304.
Travel advisories on security at foreign ports. 
‘‘70305.
Suspension of passenger services. 
‘‘70306.
Report on terrorist threats. 
‘‘§ 70301. Definitions 
‘‘In this chapter: 
‘‘(1) COMMON CARRIER.—The term ‘common carrier’ has the mean-
ing given that term in section 40102 of this title.
236 
‘‘(2) PASSENGER
VESSEL.—The term ‘passenger vessel’ has the 
meaning given that term in section 2101 of this title. 
‘‘(3) SECRETARY.—The term ‘Secretary’ means the Secretary of the 
department in which the Coast Guard is operating. 
‘‘§ 70302. International measures for seaport and vessel se-
curity 
‘‘Congress encourages the President to continue to seek agreement on 
international seaport and vessel security through the International Maritime 
Organization. In developing an agreement, each member country of the 
International Maritime Organization should consult with appropriate private 
sector interests in that country. The agreement would establish seaport and 
vessel security measures and could include— 
‘‘(1) seaport screening of cargo and baggage similar to that done at 
airports; 
‘‘(2) security measures to restrict access to cargo, vessels, and dock-
side property to authorized personnel only; 
‘‘(3) additional security on board vessels; 
‘‘(4) licensing or certification of compliance with appropriate security 
standards; and 
‘‘(5) other appropriate measures to prevent unlawful acts against 
passengers and crews on vessels. 
‘‘§ 70303. Security standards at foreign ports 
‘‘(a) GENERAL REQUIREMENTS.—The Secretary shall develop and imple-
ment a plan to assess the effectiveness of the security measures maintained 
at foreign ports that the Secretary, in consultation with the Secretary of 
State, determines pose a high risk of acts of terrorism against passenger 
vessels. In carrying out this subsection, the Secretary shall consult with the 
Secretary of State about the terrorist threat that exists in each country and 
poses a high risk of acts of terrorism against passenger vessels. 
‘‘(b) NOTICE AND RECOMMENDATIONS TO OTHER COUNTRIES.—If the 
Secretary, after implementing the plan under subsection (a), determines 
that a port does not maintain and administer effective security measures, 
the Secretary of State (after being informed by the Secretary) shall— 
‘‘(1) notify the appropriate government authorities of the country in 
which the port is located of the determination; and 
‘‘(2) recommend steps necessary to bring the security measures at 
that port up to the standard used by the Secretary in making the as-
sessment under subsection (a). 
‘‘(c) ANTITERRORISM ASSISTANCE.—The President is encouraged to pro-
vide antiterrorism assistance related to maritime security under chapter 8 
of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa et seq.)
237 
to foreign countries, especially for a port that the Secretary determines 
under subsection (b) does not maintain and administer effective security 
measures. 
‘‘§ 70304. Travel advisories on security at foreign ports 
‘‘(a) GENERAL REQUIREMENTS.—On being notified by the Secretary that 
the Secretary has determined that a condition exists that threatens the safe-
ty or security of passengers, passenger vessels, or crew traveling to or from 
a foreign port that the Secretary has determined under section 70303(b) of 
this title does not maintain and administer effective security measures, the 
Secretary of State immediately shall issue a travel advisory for that port. 
The Secretary of State shall take the necessary steps to widely publicize the 
travel advisory. 
‘‘(b) LIFTING ADVISORIES.—A travel advisory issued under subsection (a) 
may be lifted only if the Secretary, in consultation with the Secretary of 
State, has determined that effective security measures are maintained and 
administered at the port. 
‘‘(c) NOTICE TO CONGRESS.—The Secretary of State shall notify Con-
gress immediately of any change in the status of a travel advisory issued 
under this section. 
‘‘§ 70305. Suspension of passenger services 
‘‘(a) GENERAL AUTHORITY.—Whenever the President determines that a 
foreign nation permits the use of territory under its jurisdiction as a base 
of operations or training for, or as a sanctuary for, or in any way arms, 
aids, or abets, a terrorist or terrorist group that knowingly uses the illegal 
seizure of passenger vessels or the threat thereof as an instrument of policy, 
the President may suspend the right of any passenger vessel common car-
rier to operate to or from, and the right of any passenger vessel of the 
United States to use, a port in that foreign nation for passenger service. 
The suspension may be without notice or hearing and for as long as the 
President determines is necessary to ensure the security of passenger vessels 
against unlawful seizure. 
‘‘(b) PROHIBITION.—A passenger vessel common carrier, or a passenger 
vessel of the United States, may not operate in violation of a suspension 
under this section. 
‘‘(c) PENALTIES.— 
‘‘(1) DENIAL OF ENTRY.—If a person operates a vessel in violation 
of this section, the Secretary may deny the vessels of that person entry 
to ports of the United States. 
‘‘(2) CIVIL PENALTY.—A person violating this section is liable to the 
United States Government for a civil penalty of not more than
238 
$50,000. Each day a vessel uses a prohibited port is a separate viola-
tion. 
‘‘§ 70306. Report on terrorist threats 
‘‘(a) CONTENT.—Not later than February 28 of each year, the Secretary 
shall submit a report to Congress on the threat from acts of terrorism to 
United States ports and vessels operating from those ports. The Secretary 
shall include a description of activities undertaken under title I of the Mari-
time Transportation Security Act of 2002 (Public Law 107–295, 116 Stat. 
2066) and an analysis of the effect of those activities on port security 
against acts of terrorism. 
‘‘(b) SUBMISSION.—The report shall be submitted to the Committee on 
International Relations and the Committee on Transportation and Infra-
structure of the House of Representatives and the Committee on Foreign 
Relations and the Committee on Commerce, Science, and Transportation of 
the Senate. Any classified information in the report shall be submitted sepa-
rately as an addendum. 
‘‘CHAPTER 705—MARITIME DRUG LAW ENFORCEMENT 
‘‘Sec. 
‘‘70501.
Findings and declarations. 
‘‘70502.
Definitions. 
‘‘70503.
Manufacture, distribution, or possession of controlled substances on vessels. 
‘‘70504.
Jurisdiction and venue. 
‘‘70505.
Failure to comply with international law as a defense. 
‘‘70506.
Penalties. 
‘‘70507.
Forfeitures. 
‘‘§ 70501. Findings and declarations 
‘‘Congress finds and declares that trafficking in controlled substances 
aboard vessels is a serious international problem, is universally condemned, 
and presents a specific threat to the security and societal well-being of the 
United States. 
‘‘§ 70502. Definitions 
‘‘(a) APPLICATION OF OTHER DEFINITIONS.—The definitions in section 
102 of the Comprehensive Drug Abuse Prevention and Control Act of 1970 
(21 U.S.C. 802) apply to this chapter. 
‘‘(b) VESSEL OF THE UNITED STATES.—In this chapter, the term ‘vessel 
of the United States’ means— 
‘‘(1) a vessel documented under chapter 121 of this title or num-
bered as provided in chapter 123 of this title; 
‘‘(2) a vessel owned in any part by an individual who is a citizen 
of the United States, the United States Government, the government 
of a State or political subdivision of a State, or a corporation incor-
porated under the laws of the United States or of a State, unless— 
‘‘(A) the vessel has been granted the nationality of a foreign na-
tion under article 5 of the 1958 Convention on the High Seas; and
239 
‘‘(B) a claim of nationality or registry for the vessel is made 
by the master or individual in charge at the time of the enforce-
ment action by an officer or employee of the United States who 
is authorized to enforce applicable provisions of United States law; 
and 
‘‘(3) a vessel that was once documented under the laws of the United 
States and, in violation of the laws of the United States, was sold to 
a person not a citizen of the United States, placed under foreign reg-
istry, or operated under the authority of a foreign nation, whether or 
not the vessel has been granted the nationality of a foreign nation. 
‘‘(c) VESSEL
SUBJECT
TO
THE
JURISDICTION
OF
THE
UNITED 
STATES.— 
‘‘(1) IN GENERAL.—In this chapter, the term ‘vessel subject to the 
jurisdiction of the United States’ includes— 
‘‘(A) a vessel without nationality; 
‘‘(B) a vessel assimilated to a vessel without nationality under 
paragraph (2) of article 6 of the 1958 Convention on the High 
Seas; 
‘‘(C) a vessel registered in a foreign nation if that nation has 
consented or waived objection to the enforcement of United States 
law by the United States; 
‘‘(D) a vessel in the customs waters of the United States; 
‘‘(E) a vessel in the territorial waters of a foreign nation if the 
nation consents to the enforcement of United States law by the 
United States; and 
‘‘(F) a vessel in the contiguous zone of the United States, as 
defined in Presidential Proclamation 7219 of September 2, 1999 
(43 U.S.C. 1331 note), that— 
‘‘(i) is entering the United States; 
‘‘(ii) has departed the United States; or 
‘‘(iii) is a hovering vessel as defined in section 401 of the 
Tariff Act of 1930 (19 U.S.C. 1401). 
‘‘(2) CONSENT OR WAIVER OF OBJECTION.—Consent or waiver of ob-
jection by a foreign nation to the enforcement of United States law by 
the United States under paragraph (1)(C) or (E)— 
‘‘(A) may be obtained by radio, telephone, or similar oral or 
electronic means; and 
‘‘(B) is proved conclusively by certification of the Secretary of 
State or the Secretary’s designee. 
‘‘(d) VESSEL WITHOUT NATIONALITY.—
240 
‘‘(1) IN GENERAL.—In this chapter, the term ‘vessel without nation-
ality’ includes— 
‘‘(A) a vessel aboard which the master or individual in charge 
makes a claim of registry that is denied by the nation whose reg-
istry is claimed; 
‘‘(B) a vessel aboard which the master or individual in charge 
fails, on request of an officer of the United States authorized to 
enforce applicable provisions of United States law, to make a claim 
of nationality or registry for that vessel; and 
‘‘(C) a vessel aboard which the master or individual in charge 
makes a claim of registry and for which the claimed nation of reg-
istry does not affirmatively and unequivocally assert that the ves-
sel is of its nationality. 
‘‘(2) VERIFICATION OR DENIAL.—A claim of registry under para-
graph (1)(A) or (C) may be verified or denied by radio, telephone, or 
similar oral or electronic means. The denial of such a claim is proved 
conclusively by certification of the Secretary of State or the Secretary’s 
designee. 
‘‘(e) CLAIM OF NATIONALITY OR REGISTRY.—A claim of nationality or 
registry under this section includes only— 
‘‘(1) possession on board the vessel and production of documents evi-
dencing the vessel’s nationality as provided in article 5 of the 1958 
Convention on the High Seas; 
‘‘(2) flying its nation’s ensign or flag; or 
‘‘(3) a verbal claim of nationality or registry by the master or indi-
vidual in charge of the vessel. 
‘‘§ 70503. Manufacture, distribution, or possession of con-
trolled substances on vessels 
‘‘(a) PROHIBITIONS.—An individual may not knowingly or intentionally 
manufacture or distribute, or possess with intent to manufacture or dis-
tribute, a controlled substance on board— 
‘‘(1) a vessel of the United States or a vessel subject to the jurisdic-
tion of the United States; or 
‘‘(2) any vessel if the individual is a citizen of the United States or 
a resident alien of the United States. 
‘‘(b) EXTENSION BEYOND TERRITORIAL JURISDICTION.—Subsection (a) 
applies even though the act is committed outside the territorial jurisdiction 
of the United States. 
‘‘(c) NONAPPLICATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), subsection (a) does 
not apply to—
241 
‘‘(A) a common or contract carrier or an employee of the carrier 
who possesses or distributes a controlled substance in the lawful 
and usual course of the carrier’s business; or 
‘‘(B) a public vessel of the United States or an individual on 
board the vessel who possesses or distributes a controlled sub-
stance in the lawful course of the individual’s duties. 
‘‘(2) ENTERED IN MANIFEST.—Paragraph (1) applies only if the 
controlled substance is part of the cargo entered in the vessel’s mani-
fest and is intended to be imported lawfully into the country of destina-
tion for scientific, medical, or other lawful purposes. 
‘‘(d) BURDEN OF PROOF.—The United States Government is not re-
quired to negative a defense provided by subsection (c) in a complaint, in-
formation, indictment, or other pleading or in a trial or other proceeding. 
The burden of going forward with the evidence supporting the defense is 
on the person claiming its benefit. 
‘‘§ 70504. Jurisdiction and venue 
‘‘(a) JURISDICTION.—Jurisdiction of the United States with respect to a 
vessel subject to this chapter is not an element of an offense. Jurisdictional 
issues arising under this chapter are preliminary questions of law to be de-
termined solely by the trial judge. 
‘‘(b) VENUE.—A person violating section 70503 of this title shall be tried 
in the district court of the United States for— 
‘‘(1) the district at which the person enters the United States; or 
‘‘(2) the District of Columbia. 
‘‘§ 70505. Failure to comply with international law as a de-
fense 
‘‘A person charged with violating section 70503 of this title does not have 
standing to raise a claim of failure to comply with international law as a 
basis for a defense. A claim of failure to comply with international law in 
the enforcement of this chapter may be made only by a foreign nation. A 
failure to comply with international law does not divest a court of jurisdic-
tion and is not a defense to a proceeding under this chapter. 
‘‘§ 70506. Penalties 
‘‘(a) VIOLATIONS.—A person violating section 70503 of this title shall be 
punished as provided in section 1010 of the Comprehensive Drug Abuse 
Prevention and Control Act of 1970 (21 U.S.C. 960). However, if the of-
fense is a second or subsequent offense as provided in section 1012(b) of 
that Act (21 U.S.C. 962(b)), the person shall be punished as provided in 
section 1012 of that Act (21 U.S.C. 962).
242 
‘‘(b) ATTEMPTS AND CONSPIRACIES.—A person attempting or conspiring 
to violate section 70503 of this title is subject to the same penalties as pro-
vided for violating section 70503. 
‘‘§ 70507. Forfeitures 
‘‘(a) IN GENERAL.—Property described in section 511(a) of the Com-
prehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
881(a)) that is used or intended for use to commit, or to facilitate the com-
mission of, an offense under section 70503 of this title may be seized and 
forfeited in the same manner that similar property may be seized and for-
feited under section 511 of that Act (21 U.S.C. 881). 
‘‘(b) PRIMA FACIE EVIDENCE OF VIOLATION.—Practices commonly rec-
ognized as smuggling tactics may provide prima facie evidence of intent to 
use a vessel to commit, or to facilitate the commission of, an offense under 
section 70503 of this title, and may support seizure and forfeiture of the 
vessel, even in the absence of controlled substances aboard the vessel. The 
following indicia, among others, may be considered, in the totality of the 
circumstances, to be prima facie evidence that a vessel is intended to be 
used to commit, or to facilitate the commission of, such an offense: 
‘‘(1) The construction or adaptation of the vessel in a manner that 
facilitates smuggling, including— 
‘‘(A) the configuration of the vessel to ride low in the water or 
present a low hull profile to avoid being detected visually or by 
radar; 
‘‘(B) the presence of any compartment or equipment that is 
built or fitted out for smuggling, not including items such as a 
safe or lock-box reasonably used for the storage of personal 
valuables; 
‘‘(C) the presence of an auxiliary tank not installed in accord-
ance with applicable law or installed in such a manner as to en-
hance the vessel’s smuggling capability; 
‘‘(D) the presence of engines that are excessively over-powered 
in relation to the design and size of the vessel; 
‘‘(E) the presence of materials used to reduce or alter the heat 
or radar signature of the vessel and avoid detection; 
‘‘(F) the presence of a camouflaging paint scheme, or of mate-
rials used to camouflage the vessel, to avoid detection; or 
‘‘(G) the display of false vessel registration numbers, false indi-
cia of vessel nationality, false vessel name, or false vessel home-
port. 
‘‘(2) The presence or absence of equipment, personnel, or cargo in-
consistent with the type or declared purpose of the vessel.
243 
‘‘(3) The presence of excessive fuel, lube oil, food, water, or spare 
parts, inconsistent with legitimate vessel operation, inconsistent with 
the construction or equipment of the vessel, or inconsistent with the 
character of the vessel’s stated purpose. 
‘‘(4) The operation of the vessel without lights during times lights 
are required to be displayed under applicable law or regulation and in 
a manner of navigation consistent with smuggling tactics used to avoid 
detection by law enforcement authorities. 
‘‘(5) The failure of the vessel to stop or respond or heave to when 
hailed by government authority, especially where the vessel conducts 
evasive maneuvering when hailed. 
‘‘(6) The declaration to government authority of apparently false in-
formation about the vessel, crew, or voyage or the failure to identify 
the vessel by name or country of registration when requested to do so 
by government authority. 
‘‘(7) The presence of controlled substance residue on the vessel, on 
an item aboard the vessel, or on an individual aboard the vessel, of a 
quantity or other nature that reasonably indicates manufacturing or 
distribution activity. 
‘‘(8) The use of petroleum products or other substances on the vessel 
to foil the detection of controlled substance residue. 
‘‘(9) The presence of a controlled substance in the water in the vicin-
ity of the vessel, where given the currents, weather conditions, and 
course and speed of the vessel, the quantity or other nature is such 
that it reasonably indicates manufacturing or distribution activity.’’. 
SEC. 11. SUBTITLE VIII OF TITLE 46. 
Title 46, United States Code, is amended by adding after subtitle VII the 
following: 
‘‘Subtitle VIII—Miscellaneous 
‘‘Chapter 
Sec. 
‘‘801. Wrecks and Salvage .................................................................................
80101 
‘‘803. Ice and Derelicts .......................................................................................
80301 
‘‘805. Safe Containers for International Cargo .........................................
80501 
‘‘CHAPTER 801—WRECKS AND SALVAGE 
‘‘Sec. 
‘‘80101.
Vessel stranded on foreign coast. 
‘‘80102.
License to salvage on Florida coast. 
‘‘80103.
Property on Florida coast to be taken to port of entry. 
‘‘80104.
Salvaging operations by foreign vessels. 
‘‘80105.
Canadian vessels aiding vessels in United States waters. 
‘‘80106.
International agreement on derelicts. 
‘‘80107.
Salvors of life to share in remuneration. 
‘‘§ 80101. Vessel stranded on foreign coast 
‘‘(a) DUTIES OF CONSULAR OFFICER.—When a vessel of the United 
States is stranded on a coast of a foreign country, the consular officer in
244 
that country shall take proper measures, to the extent the laws of that coun-
try allow, to— 
‘‘(1) save and secure the vessel and property on the vessel; and 
‘‘(2) prepare an inventory of the property that is saved. 
‘‘(b) DELIVERY TO OWNER.—After deducting the expenses, the consular 
officer shall deliver the property, with an inventory, to the owner of the 
property. 
‘‘(c) LIMITATION ON TAKING POSSESSION.—A consular officer may not 
take possession of property under this section when the owner, master, or 
consignee is present or able to take possession of the property. 
‘‘§ 80102. License to salvage on Florida coast 
‘‘(a) LICENSING REQUIREMENTS.—To be regularly employed in the busi-
ness of salvaging on the coast of Florida, a vessel and its master each must 
have a license issued by a judge of the district court of the United States 
for a judicial district of Florida. 
‘‘(b) JUDICIAL FINDINGS.—Before issuing a license under this section, 
the judge must be satisfied, when the license is for— 
‘‘(1) a vessel, that the vessel is seaworthy and properly equipped for 
the business of saving property shipwrecked and in distress; or 
‘‘(2) a master, that the master is trustworthy and innocent of any 
fraud or misconduct related to property shipwrecked or saved on the 
coast. 
‘‘§ 80103. Property on Florida coast to be taken to port of 
entry 
‘‘(a) IN GENERAL.—Property taken from a wreck, the sea, or a key or 
shoal, on the coast of Florida and within the jurisdiction of the United 
States, shall be brought to a port of entry of the United States. 
‘‘(b) SEIZURE AND FORFEITURE.—A vessel transporting property de-
scribed in subsection (a) to a foreign port may be seized by, and forfeited 
to, the United States Government. A forfeiture under this subsection ac-
crues half to the informer and half to the Government. 
‘‘§ 80104. Salvaging operations by foreign vessels 
‘‘(a) PROHIBITION.—Except as provided in this section or section 80105 
of this title, a foreign vessel may not, under penalty of forfeiture, engage 
in salvaging operations on the Atlantic or Pacific coast of the United States, 
in any portion of the Great Lakes or their connecting or tributary waters, 
including any portion of the Saint Lawrence River through which the inter-
national boundary line extends, or in territorial waters of the United States 
on the Gulf of Mexico. 
‘‘(b) WHEN SUITABLE VESSEL NOT AVAILABLE.—The Secretary of 
Homeland Security may authorize a foreign vessel to engage in salvaging
245 
operations in a particular locality if, on investigation, the Secretary is satis-
fied that there is not available in that locality a suitable vessel that is— 
‘‘(1) owned only by citizens of the United States (including a 
Bowaters corporation under section 12118 of this title); and 
‘‘(2) documented under chapter 121 of this title or numbered under 
chapter 123 of this title. 
‘‘(c) OPERATIONS AUTHORIZED BY TREATY.—This section does not pro-
hibit or restrict assistance to vessels or salvaging operations authorized by 
treaty, including— 
‘‘(1) article II of the Treaty between the United States and Great 
Britain concerning reciprocal rights for United States and Canada in 
the conveyance of prisoners and wrecking and salvage, signed at Wash-
ington, May 18, 1908 (35 Stat. 2036); or 
‘‘(2) the Treaty between the United States of America and Mexico 
to facilitate assistance to and salvage of vessels in territorial waters, 
signed at Mexico City, June 13, 1935 (49 Stat. 3359). 
‘‘§ 80105. Canadian vessels aiding vessels in United States 
waters 
‘‘(a) IN GENERAL.—Canadian vessels and wrecking equipment may give 
aid to Canadian or other vessels and property wrecked, disabled, or in dis-
tress in the waters of the United States contiguous to Canada, including— 
‘‘(1) the canal and improvement of the waters between Lake Erie 
and Lake Huron; and 
‘‘(2) the Saint Marys River and canal. 
‘‘(b) RECIPROCITY.—This section does not apply after the President pro-
claims that privileges reciprocal to those under subsection (a) have been 
withdrawn or rendered inoperative by the Government of Canada. 
‘‘§ 80106. International agreement on derelicts 
‘‘The President may make an international agreement with other govern-
ments interested in the navigation of the North Atlantic Ocean, providing 
for the reporting, marking, and removal of dangerous wrecks, derelicts, and 
other menaces to navigation outside the coast waters of the countries bor-
dering the North Atlantic Ocean. 
‘‘§ 80107. Salvors of life to share in remuneration 
‘‘(a) ENTITLEMENT OF SALVORS.—A salvor of human life, who gave aid 
following an accident giving rise to salvage, is entitled to a fair share of 
the payment awarded to the salvor for salvaging the vessel or other property 
or preventing or minimizing damage to the environment. 
‘‘(b) COMMON OWNERSHIP OF VESSELS.—The right to remuneration for 
aid or salvage services is not affected by common ownership of the vessels 
giving and receiving the aid or salvage services.