‘‘(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 collected 
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 restraining 
order or preliminary injunction for a period not to exceed 10 days after the 
Commission has issued an order disposing of the issues under investigation. 
‘‘(b) REDUCTION IN COMPETITION.— 
‘‘(1) ACTION BY COMMISSION.—If, at any time after the filing or effec-
tive date of an agreement under chapter 403 of this title, the Commission 
determines that the agreement is likely, by a reduction in competition, 
to produce an unreasonable reduction in transportation service or an un-
reasonable 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 enjoin 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 sub-
section. 
‘‘(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 agreement 
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 request 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 hear-
ing, 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 Fed-
eral 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 en-
tered 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 rea-
sonable 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 shipping 
in foreign trade, whether in a particular trade or on a particular route or 
in commerce generally, including intermodal movements, terminal operations, 
cargo solicitation, agency services, ocean transportation intermediary services 
and operations, and other activities and services integral to transportation 
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 Government. 
‘‘§ 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 re-
lating to the Public Health Service, the Consular Service, or the inspection 
of vessels. 
‘‘(b) PRIOR REVIEW AND APPROVAL.—A department, agency, or instrumen-
tality of the Government may not prescribe a regulation affecting shipping 
in the foreign trade (except a regulation affecting the Public Health Service, 
the Consular Service, or the inspection of vessels) until the regulation 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 subsection (b), 
the Commission or the head of the department, agency, or instrumentality 
may submit the facts to the President. The President may establish, 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 (including 
a common carrier, tramp operator, bulk operator, shipper, shippers’ associa-
tion, 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 Commis-
sion 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 Fed-
eral 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 subpoena 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 car-
riage 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 revenue 
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 appro-
priate 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 op-
erating shall— 
‘‘(A) deny entry, for purposes of oceanborne trade, of a vessel of 
a country that is named in a regulation prescribed by the Commis-
sion 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 tar-
iff 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 Gov-
ernment 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 contract. 
‘‘§ 42109. Consultation with other agencies 
‘‘The Federal Maritime Commission may consult with, seek the cooperation 
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 serv-
ices’ means intermodal operations, terminal operations, cargo solicita-
tion, agency services, ocean transportation intermediary services and op-
erations, and all other activities and services integral to total transpor-
tation systems of ocean common carriers and their foreign domiciled af-
filiates 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 com-
mon carrier. 
‘‘§ 42302. Investigations 
‘‘(a) IN GENERAL.—The Federal Maritime Commission shall investigate 
whether any laws, rules, regulations, policies, or practices of a foreign govern-
ment, or any practices of a foreign carrier or other person providing mari-
time or maritime-related services in a foreign country, result in the existence 
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 maritime- 
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 Government. 
‘‘(c) TIME FOR DECISION.—The Commission shall complete an investiga-
tion under this section and render a decision within 120 days after it is initi-
ated. However, the Commission may extend this 120-day period for an addi-
tional 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 com-
mon 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 special 
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.—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 pub-
lic. 
‘‘§ 42304. Action against foreign carriers 
‘‘(a) IN GENERAL.—Subject to section 42306 of this title, whenever the Fed-
eral 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 con-
ditions. 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, includ-
ing any agreement authorizing preferential treatment at terminals, pref-
erential 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 coopera-
tion 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 Com-
mission 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 re-
quired 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 op-
erating shall—
‘‘(A) deny entry, for purposes of oceanborne trade, of a vessel of 
a foreign carrier that is identified by the Commission under section 
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 effective 
or a request is made under section 42305 of this title, the determination 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 required 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 transportation. 
‘‘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 passengers; 
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 Fed-
eral 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 accommodations. 
‘‘(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 responsi-
bility shall be based on the number of passenger accommodations on the 
vessel with the largest number of passenger accommodations. 
‘‘(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 indi-
vidual 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 busi-
ness 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 Commis-
sion. The Commission may remit or mitigate the penalty on terms the Com-
mission 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 following: 
‘‘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 develop-
ment 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 sub-
stantial part of the waterborne export and import foreign commerce of 
the United States and to provide shipping service essential for maintain-
ing 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 as vessels of the United States by citizens 
of the United States; 
‘‘(4) composed of the best-equipped, safest, and most suitable types of 
vessels 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 objec-
tives described in subsection (a). 
‘‘§ 50102. Survey of merchant marine 
‘‘(a) IN GENERAL.—The Secretary of Transportation shall survey the mer-
chant marine of the United States to determine whether replacements and ad-
ditions 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 pro-
gram 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 national emer-
gency; 
‘‘(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 investigate, 
determine, and keep current records of the ocean services, routes, and 
lines from ports in the United States, or in the territories and posses-
sions of the United States, to foreign markets, which the Secretary deter-
mines 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 na-
tional 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 sea-
sonal closing of the Saint Lawrence Seaway and provide for alternate 
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 investigate, 
determine, and keep current records of the bulk cargo carrying services that 
should be provided by vessels of the United States (whether or not operating 
on particular services, routes, or lines) for the promotion, development, expan-
sion, 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 vessels, 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 fur-
nishing 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 exam-
ine 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 ec-
onomical construction of vessels and their propelling machinery, of most mod-
ern economical types, giving thorough consideration to all well-recognized 
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, especially 
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 investigate, 
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 cur-
rent 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 Con-
gress as the Secretary considers proper for the amendment, improvement, 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 com-
panies in the United States, domestic and foreign, engaging in marine 
insurance, the extent of the insurance on hulls and cargoes placed or 
written in the United States, and the extent of reinsurance of American 
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 ma-
rine 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 implementation 
of new concepts for the carriage of cargo in the domestic and foreign 
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 preference 
as between carriers based on the length, height, or width of cargo containers 
or the length, height, or width of cargo container cells. This restriction 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 mer-
chant marine. 
‘‘(b) LAWS APPLICABLE TO AIRCRAFT.—The Secretary shall investigate, de-
termine, and keep current records of the provisions of law relating to shipping 
that should be made applicable to aircraft engaged in foreign commerce to 
further the policy in section 50101 of this title, and any appropriate legisla-
tion in this regard. 
‘‘(c) AID FOR COTTON, COAL, LUMBER, AND CEMENT.—The Secretary shall 
investigate, determine, and keep current records of the advisability of enact-
ment of suitable legislation authorizing the Secretary, in an economic or com-
mercial emergency, to aid farmers and producers of cotton, coal, lumber, 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 tonnage to any 
American operator, or by operation of vessels directly by the Secretary, until 
the Secretary considers the special rate reduction and operation 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 merchant 
tonnage owned by the United States Government or in use in the mer-
chant 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 im-
porters 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 move-
ment of commodities in the waterborne export and import foreign 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 include, 
with respect to activities of the Secretary under this subtitle, the results of 
investigations, a summary of transactions, a statement of all expenditures 
and receipts, the purposes for which all expenditures were made, and any rec-
ommendations for legislation. 
‘‘(b) ADMINISTERED AND OVERSIGHT FUNDS.—The Secretary, in the report 
under subsection (a) and in the annual budget estimate for the Maritime Ad-
ministration 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 Adminis-
tration) administered, or subject to oversight, by the Administration. 
‘‘(c) ADDITIONAL RECOMMENDATIONS FOR LEGISLATION.—The Secretary, 
from time to time, shall make recommendations to Congress for legislation the 
Secretary considers necessary to better achieve the objectives and policy of sec-
tion 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 designation 
as a National Maritime Enhancement Institute shall submit an application 
under regulations prescribed by the Secretary. 
‘‘(d) CRITERIA FOR DESIGNATION.—The Secretary shall designate an insti-
tute 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 industries. 
‘‘(4) The demonstrated ability of the applicant to assemble and evalu-
ate pertinent information from national and international sources and 
to disseminate results of maritime industry research and educational 
programs through a continuing education program. 
‘‘(5) The qualification of the applicant as a nonprofit institution of 
higher learning. 
‘‘(e) FINANCIAL AWARDS.—The Secretary may make awards on an equal 
matching basis to an institute designated under subsection (a) from amounts 
appropriated. The aggregate annual amount of the Federal share of the 
awards by the Secretary may not exceed $500,000. 
‘‘(f) UNIVERSITY TRANSPORTATION RESEARCH FUNDS.—The Secretary 
may make a grant under section 5505 of title 49 to an institute designated 
under subsection (a) for maritime and maritime intermodal research under 
that section as if the institute were a university transportation center. In 
making a grant, the Secretary, through the Research and Innovative Tech-
nology Administration, shall advise the Maritime Administration on the 
availability of funds for the grants and consult with the Administration on 
making the grants. 
‘‘§ 50113. Use and performance reports by operators of vessels 
‘‘(a) FILING REQUIREMENT.—The Secretary of Transportation by regula-
tion may require the operator of a vessel in the waterborne foreign commerce 
of the United States to file such report, account, record, or memorandum on
the use and performance of the vessel as the Secretary considers desirable to 
assist in carrying out this subtitle. The report, account, record, or memo-
randum shall be signed and verified, and be filed at the times and in the 
manner, as provided by regulation. 
‘‘(b) CIVIL PENALTY.—An operator not filing a report, account, record, or 
memorandum required by the Secretary under this section is liable to the 
United States Government for a civil penalty of $50 for each day of the viola-
tion. A penalty imposed under this section on the operator of a vessel con-
stitutes a lien on the vessel involved in the violation. A civil action in rem 
to enforce the lien may be brought in the district court of the United States 
for any district in which the vessel is found. The Secretary may remit or 
mitigate any penalty imposed under this section. 
‘‘CHAPTER 503—ADMINISTRATIVE 
‘‘Sec. 
‘‘50301.
Vessel Operations Revolving Fund. 
‘‘50302.
Port development. 
‘‘50303.
Operating property and extending term of notes. 
‘‘50304.
Sale and transfer of property. 
‘‘50305.
Appointment of trustee or receiver and operation of vessels. 
‘‘50306.
Requiring testimony and records in investigations. 
‘‘§ 50301. Vessel Operations Revolving Fund 
‘‘(a) IN GENERAL.—There is a ‘Vessel Operations Revolving Fund’ for use 
by the Secretary of Transportation in carrying out duties and powers related 
to vessel operations, including charter, operation, maintenance, repair, recon-
ditioning, and improvement of merchant vessels under the jurisdiction of the 
Secretary. The Fund has a working capital of $20,000,000, to remain avail-
able until expended. 
‘‘(b) RELATIONSHIP TO OTHER LAWS.—Notwithstanding any other law, 
rates for shipping services provided under the Fund shall be prescribed by the 
Secretary and the Fund shall be credited with receipts from vessel operations 
conducted under the Fund. 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), apply to those 
operations and to seamen employed through general agents as employees of 
the United States Government. Notwithstanding any other law on the employ-
ment of persons by the Government, the seamen may be employed in accord-
ance with customary commercial practices in the maritime industry. 
‘‘(c) ADVANCEMENTS.—With the approval of the Director of the Office of 
Management and Budget, the Secretary may advance amounts the Secretary 
considers necessary, but not more than 2 percent of vessel operating expenses, 
from the Fund to the appropriation ‘Salaries and Expenses’ in carrying out 
duties and powers related to vessel operations, without regard to the limita-
tions on amounts stated in that appropriation. 
‘‘(d) TRANSFERS.—The unexpended balances of working funds or of alloca-
tion accounts established after January 1, 1951, for the activities provided