H. R. 1442—147
‘‘(2) COMPENSATION.—The Secretary may allow the com-
pany or group of companies reasonable compensation for serv-
ices as the underwriting agent. The compensation may include 
an allowance for expenses reasonably incurred by the agent, 
but may not include any amount for soliciting or stimulating 
business. 
‘‘(g) FEES FOR ARRANGING INSURANCE.—Except as provided in 
subsection (f)(2), the Secretary may not pay an insurance broker 
or other person acting in a similar intermediary capacity a fee 
or other consideration for participating in arranging insurance when 
the Secretary directly insures any of the risk. 
‘‘(h) EMPLOYMENT OF MARINE INSURANCE EXPERTS.—The Sec-
retary, without regard to the laws and regulations on the employ-
ment of Federal employees, may appoint and prescribe the duties 
of experts in marine insurance as the Secretary considers necessary 
to carry out this chapter. 
‘‘(i) SERVICES
OF OTHER GOVERNMENT AGENCIES.—With the 
consent of another agency of the United States Government, the 
Secretary may use information, services, facilities, officers, and 
employees of the agency in carrying out this chapter. 
‘‘(j) VESSEL LOCATION REPORTING.—The Secretary may pre-
scribe by regulation vessel location reporting requirements for a 
vessel insured under this chapter. 
‘‘§ 53911. Civil actions for losses 
‘‘(a) IN GENERAL.—If there is a disagreement about a loss 
insured under this chapter, a civil action in admiralty may be 
brought against the United States in the district court of the United 
States for the district in which the plaintiff or the plaintiff’s agent 
resides. If the plaintiff has no residence in the United States, 
the action may be brought in the United States District Court 
for the District of Columbia or in the district court for any district 
in which the Attorney General agrees to accept service. Any person 
who may have an interest in the insurance may be made a party, 
either initially or on the motion of either party. 
‘‘(b) EXCLUSIVE REMEDY.—A civil action against the United 
States under this section is exclusive of any other action by reason 
of the same subject matter against an officer, employee, or agent 
employed or retained by the Government under this chapter. 
‘‘(c) PROCEDURE.—A civil action under this section shall be 
heard and determined under chapter 309 of this title. 
‘‘(d) TOLLING OF LIMITATIONS PERIOD.—If a claim is filed with 
the Secretary of Transportation, the running of the limitations 
period for bringing a civil action is suspended until the Secretary 
denies the claim, and for 60 days thereafter. The Secretary is 
deemed to have denied the claim if the Secretary does not act 
on the claim within 6 months after the claim is filed, unless the 
Secretary for good cause shown agrees with the claimant on a 
different period for the Secretary to act on the claim. 
‘‘(e) INTERPLEADER.—If the Secretary acknowledges the indebt-
edness of the Government under the insurance and there is a 
dispute about the persons entitled to receive payment, the Govern-
ment may bring a civil action interpleading those persons. The 
action shall be brought in the United States District Court for 
the District of Columbia or in the district court for the district 
in which any of those persons resides. A person not residing or 
found in the district may be made a party by service in any
H. R. 1442—148
reasonable manner the court directs. If the court is satisfied that 
unknown persons might make a claim under the insurance, the 
court may direct service on those unknown persons by publication 
in the Federal Register. Judgment after service by publication in 
the Federal Register discharges the Government from further 
liability to all persons. 
‘‘§ 53912. Expiration date 
‘‘The authority of the Secretary of Transportation to provide 
insurance and reinsurance under this chapter expires on December 
31, 2010.
‘‘PART D—PROMOTIONAL PROGRAMS 
‘‘CHAPTER 551—COASTWISE TRADE
‘‘Sec. 
‘‘55101.
Application of coastwise laws. 
‘‘55102.
Transportation of merchandise. 
‘‘55103.
Transportation of passengers. 
‘‘55104.
Transportation of passengers between Puerto Rico and other ports in the 
United States. 
‘‘55105.
Transportation of hazardous waste. 
‘‘55106.
Merchandise transferred between barges. 
‘‘55107.
Empty cargo containers and barges. 
‘‘55108.
Platform jackets. 
‘‘55109.
Dredging. 
‘‘55110.
Transportation of dredged material. 
‘‘55111.
Towing. 
‘‘55112.
Vessel escort operations and towing assistance. 
‘‘55113.
Use of foreign documented oil spill response vessels. 
‘‘55114.
Unloading fish from foreign vessels. 
‘‘55115.
Supplies on fish processing vessels. 
‘‘55116.
Canadian rail lines. 
‘‘55117.
Great Lakes rail route. 
‘‘55118.
Foreign railroads whose road enters by ferry, tugboat, or towboat. 
‘‘55119.
Yukon River. 
‘‘55120.
Transshipment of imported merchandise intended for immediate expor-
tation. 
‘‘55121.
Transportation of merchandise and passengers on Canadian vessels.
‘‘§ 55101. Application of coastwise laws 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), the 
coastwise laws apply to the United States, including the island 
territories and possessions of the United States. 
‘‘(b) EXCEPTIONS.—The coastwise laws do not apply to—
‘‘(1) American Samoa; 
‘‘(2) the Northern Mariana Islands, except as provided in 
section 502(b) of the Covenant To Establish a Commonwealth 
of the Northern Mariana Islands in Political Union With the 
United States of America (48 U.S.C. 1801 note); 
‘‘(3) Canton Island until the President declares by 
proclamation that the coastwise laws apply to Canton Island; 
or 
‘‘(4) the Virgin Islands until the President declares by 
proclamation that the coastwise laws apply to the Virgin 
Islands. 
‘‘§ 55102. Transportation of merchandise 
‘‘(a) DEFINITION.—In this section, the term ‘merchandise’ 
includes—
‘‘(1) merchandise owned by the United States Government, 
a State, or a subdivision of a State; and
H. R. 1442—149
‘‘(2) valueless material. 
‘‘(b) REQUIREMENTS.—Except as otherwise provided in this 
chapter or chapter 121 of this title, a vessel may not provide 
any part of the transportation of merchandise by water, or by 
land and water, between points in the United States to which 
the coastwise laws apply, either directly or via a foreign port, 
unless the vessel—
‘‘(1) is wholly owned by citizens of the United States for 
purposes of engaging in the coastwise trade; and 
‘‘(2) has been issued a certificate of documentation with 
a coastwise endorsement under chapter 121 or is exempt from 
documentation but would otherwise be eligible for such a certifi-
cate and endorsement. 
‘‘(c) PENALTY.—Merchandise transported in violation of sub-
section (b) is liable to seizure by and forfeiture to the Government. 
Alternatively, an amount equal to the value of the merchandise 
(as determined by the Secretary of Homeland Security) or the 
actual cost of the transportation, whichever is greater, may be 
recovered from any person transporting the merchandise or causing 
the merchandise to be transported. 
‘‘§ 55103. Transportation of passengers 
‘‘(a) IN GENERAL.—Except as otherwise provided in this chapter 
or chapter 121 of this title, a vessel may not transport passengers 
between ports or places in the United States to which the coastwise 
laws apply, either directly or via a foreign port, unless the vessel—
‘‘(1) is wholly owned by citizens of the United States for 
purposes of engaging in the coastwise trade; and 
‘‘(2) has been issued a certificate of documentation with 
a coastwise endorsement under chapter 121 or is exempt from 
documentation but would otherwise be eligible for such a certifi-
cate and endorsement. 
‘‘(b) PENALTY.—The penalty for violating subsection (a) is $300 
for each passenger transported and landed. 
‘‘§ 55104. Transportation of passengers between Puerto Rico 
and other ports in the United States 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) CERTIFICATE.—The term ‘certificate’ means a certificate 
of financial responsibility for indemnification of passengers for 
nonperformance of transportation issued by the Federal Mari-
time Commission under section 44102 of this title. 
‘‘(2) PASSENGER
VESSEL.—The term ‘passenger vessel’ 
means a vessel of similar size, or offering similar service, as 
any other vessel transporting passengers under subsection (b). 
‘‘(b) EXEMPTION.—Except as otherwise provided in this section, 
a vessel not qualified to engage in the coastwise trade may transport 
passengers between a port in Puerto Rico and another port in 
the United States. 
‘‘(c) EXPIRATION OF EXEMPTION.—
‘‘(1) 
WHEN
COASTWISE-QUALIFIED
VESSEL
OFFERING 
SERVICE.—On a showing to the Secretary of the department 
in which the Coast Guard is operating, by the vessel owner 
or charterer, that a United States passenger vessel qualified 
to engage in the coastwise trade is offering or advertising 
passenger service between a port in Puerto Rico and another 
port in the United States pursuant to a certificate, the Secretary
H. R. 1442—150
shall notify the owner or operator of each vessel transporting 
passengers under subsection (b) to terminate that transpor-
tation within 270 days after the Secretary’s notification. Except 
as provided in subsection (d), the authority to transport pas-
sengers under subsection (b) expires at the end of that 270-
day period. 
‘‘(2) WHEN
NON-COASTWISE-QUALIFIED
VESSEL
OFFERING 
SERVICE.—On a showing to the Secretary, by the vessel owner 
or charterer, that a United States passenger vessel not qualified 
to engage in the coastwise trade is offering or advertising 
passenger service between a port in Puerto Rico and another 
port in the United States pursuant to a certificate, the Secretary 
shall notify the owner or operator of each foreign vessel trans-
porting passengers under subsection (b) to terminate that 
transportation within 270 days after the Secretary’s notifica-
tion. Except as provided in subsection (d), the authority of 
a foreign vessel to transport passengers under subsection (b) 
expires at the end of that 270-day period. 
‘‘(d) DELAYING EXPIRATION.—If the vessel offering or advertising 
the service described in subsection (c) has not begun that service 
within 270 days after the Secretary’s notification, the expiration 
provided by subsection (c) is delayed until 90 days after the vessel 
offering or advertising the service begins that service. 
‘‘(e) REINSTATEMENT OF EXEMPTION.—If the Secretary finds that 
the service on which an expiration was based is no longer available, 
the expired authority to transport passengers is reinstated. 
‘‘§ 55105. Transportation of hazardous waste 
‘‘(a) IN GENERAL.—The transportation of hazardous waste, as 
defined in section 1004(5) of the Resource Conservation and 
Recovery Act of 1976 (42 U.S.C. 6903(5)), from a point in the 
United States to sea for incineration is deemed to be transportation 
of merchandise under section 55102 of this title. 
‘‘(b) NONAPPLICATION TO CERTAIN FOREIGN VESSELS.—
‘‘(1) IN
GENERAL.—Subsection (a) does not apply to 
transportation performed by a foreign ocean incineration vessel 
owned by or under construction on May 1, 1982, for a corpora-
tion wholly owned by citizens of the United States under section 
50501(a)–(c) of this title. 
‘‘(2) STANDARDS
FOR
INCINERATION
EQUIPMENT.—Inciner-
ation equipment on a vessel described in paragraph (1) must 
meet standards of the Coast Guard and the Environmental 
Protection Agency. 
‘‘(3) INSPECTION.—A vessel described in paragraph (1) shall 
be inspected by the Coast Guard, regardless of whether 
inspected by the nation in which it is registered. The inspection 
shall be the same as would be required of a vessel of the 
United States, including drydock inspection and internal exam-
ination of tanks and void spaces. The inspection may be made 
concurrently with an inspection by that nation or within one 
year after the initial issuance or next scheduled issuance of 
the Safety of Life at Sea Safety Construction Certificate. In 
making the inspection, the Coast Guard shall refer to the 
condition of the hull and superstructure established by the 
initial foreign certification as the basis for evaluating the cur-
rent condition of the hull and superstructure. The Coast Guard 
shall allow the substitution of fittings, material, apparatus,
H. R. 1442—151
equipment, and appliances different from those required for 
vessels of the United States if satisfied they are equivalent 
and at least as effective as those required for vessels of the 
United States. A satisfactory inspection under this paragraph 
shall be certified in writing by the Secretary of the department 
in which the Coast Guard is operating. 
‘‘(c) EFFECTIVE DATE.—Subsection (a) is not effective until an 
appropriate vessel has been built and documented under chapter 
121 of this title. 
‘‘§ 55106. Merchandise transferred between barges 
‘‘(a) IN GENERAL.—On terms and conditions the Secretary of 
Homeland Security may prescribe by regulation, the Secretary may 
suspend the application of section 55102 of this title to the transpor-
tation of merchandise that is transferred, when moving in the 
foreign trade of the United States, from a barge certified by the 
owner or operator as designed specifically for carriage on a vessel 
and carried regularly on a vessel in foreign trade, to another such 
barge owned or leased by the same owner or operator. However, 
this subsection does not apply to transportation between the conti-
nental United States and noncontiguous States, territories, or 
possessions to which the coastwise laws apply. 
‘‘(b) RECIPROCITY REQUIREMENT FOR FOREIGN VESSELS.—This 
section applies to a vessel of foreign registry only if the Secretary 
of Homeland Security finds, based on information from the Sec-
retary of State, that the government of the nation of registry extends 
reciprocal privileges to vessels of the United States. 
‘‘§ 55107. Empty cargo containers and barges 
‘‘(a) IN GENERAL.—Subject to subsections (b) and (c), and on 
terms and conditions the Secretary of Homeland Security may 
prescribe by regulation, section 55102 of this title does not apply 
to the transportation of—
‘‘(1) empty cargo vans, empty lift vans, or empty shipping 
tanks; 
‘‘(2) equipment for use with cargo vans, lift vans, or ship-
ping tanks; 
‘‘(3) empty barges specifically designed for carriage aboard 
a vessel and equipment (except propulsion equipment) for use 
with those barges; 
‘‘(4) empty instruments for international traffic exempted 
from the customs laws under section 322(a) of the Tariff Act 
of 1930 (19 U.S.C. 1322(a)); or 
‘‘(5) stevedoring equipment and material. 
‘‘(b) CONDITIONS.—
‘‘(1) PARAGRAPHS (1)–(4).—Paragraphs (1)–(4) of subsection 
(a) apply only if the items named are owned or leased by 
the owner or operator of the vessel and transported for its 
use in handling its cargo in foreign trade. 
‘‘(2) PARAGRAPH (5).—Paragraph (5) of subsection (a) applies 
only if the items named are—
‘‘(A) owned or leased by the owner or operator of the 
vessel or by the stevedoring company having the contract 
for the loading or unloading of the vessel; and 
‘‘(B) transported without charge for use in the handling 
of cargo in foreign trade.
H. R. 1442—152
‘‘(c) RECIPROCITY REQUIREMENT FOR FOREIGN VESSELS.—This 
section applies to a vessel of foreign registry only if the Secretary 
of Homeland Security finds, based on information from the Sec-
retary of State, that the government of the nation of registry extends 
reciprocal privileges to vessels of the United States. 
‘‘§ 55108. Platform jackets 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COASTWISE QUALIFIED VESSEL.—The term ‘coastwise 
qualified vessel’ means a vessel that has been issued a certifi-
cate of documentation with a coastwise endorsement under 
chapter 121 of this title. 
‘‘(2) PLATFORM JACKET.—The term ‘platform jacket’ refers 
to a single physical component and includes any type of offshore 
exploration, development, or production structure or component 
thereof, including—
‘‘(A) platform jackets; 
‘‘(B) tension leg or SPAR platform superstructures 
(including the deck, drilling rig and support utilities, and 
supporting structure); 
‘‘(C) hull (including vertical legs and connecting pon-
toons or vertical cylinder); 
‘‘(D) tower and base sections of a platform jacket; 
‘‘(E) jacket structures; and 
‘‘(F) deck modules (known as ‘topsides’). 
‘‘(b) AUTHORIZED TRANSPORTATION.—Section 55102 of this title 
does not apply to the transportation of a platform jacket in or 
on a non-coastwise qualified launch barge between two points in 
the United States, at one of which there is an installation or 
other device within the meaning of section 4(a) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1333(a)), if—
‘‘(1) the launch barge was built before December 31, 2000, 
and has a launch capacity of at least 12,000 long tons; and 
‘‘(2) the Secretary of Transportation makes a determination, 
in accordance with procedures established under subsection 
(c), that a suitable coastwise qualified vessel is not available 
for use in the transportation and, if needed, launch or installa-
tion of a platform jacket. 
‘‘(c) PROCEDURES TO MAXIMIZE USE OF COASTWISE QUALIFIED 
VESSELS.—The Secretary of Transportation shall adopt procedures 
implementing this section that are reasonably designed to provide 
timely information so as to maximize the use of coastwise qualified 
vessels. The procedures shall, among other things, establish that 
for purposes of this section, a coastwise qualified vessel shall be 
deemed to be not available only if—
‘‘(1) on application by an owner or operator for the use 
of a non-coastwise qualified launch barge for transportation 
of a platform jacket under this section (which application shall 
include all relevant information, including engineering details 
and timing requirements), the Secretary promptly publishes 
a notice in the Federal Register—
‘‘(A) describing the project and the platform jacket 
involved; 
‘‘(B) advising that all relevant information reasonably 
needed to assess the transportation requirements for the 
platform jacket will be made available to interested parties 
on request; and
H. R. 1442—153
‘‘(C) requesting that information on the availability 
of coastwise qualified vessels be submitted within 30 days 
after publication of that notice; and 
‘‘(2)(A) no information is submitted to the Secretary within 
that 30 day period; or 
‘‘(B) the owner or operator of a coastwise qualified vessel 
submits information to the Secretary asserting that the owner 
or operator has a suitable coastwise qualified vessel available 
for the transportation, but the Secretary determines, within 
90 days after the notice is first published, that the coastwise 
qualified vessel is not suitable or reasonably available for the 
transportation. 
‘‘§ 55109. Dredging 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), a vessel 
may engage in dredging in the navigable waters of the United 
States only if—
‘‘(1) the vessel is wholly owned by citizens of the United 
States for purposes of engaging in the coastwise trade; 
‘‘(2) the charterer, if any, is a citizen of the United States 
for purposes of engaging in the coastwise trade; and 
‘‘(3) the vessel has been issued a certificate of documenta-
tion with a coastwise endorsement under chapter 121 of this 
title or is exempt from documentation but would otherwise 
be eligible for such a certificate and endorsement. 
‘‘(b) DREDGING OF GOLD IN ALASKA.—A documented vessel with 
a registry endorsement may engage in the dredging of gold in 
Alaska. 
‘‘(c) PENALTY.—If a vessel is operated in knowing violation 
of this section, the vessel and its equipment are liable to seizure 
by and forfeiture to the United States Government. 
‘‘§ 55110. Transportation of dredged material 
‘‘Section 55102 of this title applies to the transportation of 
valueless material or dredged material, regardless of whether it 
has commercial value, from a point in the United States or on 
the high seas within the exclusive economic zone, to another point 
in the United States or on the high seas within the exclusive 
economic zone. 
‘‘§ 55111. Towing 
‘‘(a) IN GENERAL.—Except when towing a vessel in distress, 
a vessel may not do any part of any towing described in subsection 
(b) unless the towing vessel—
‘‘(1) is wholly owned by citizens of the United States for 
purposes of engaging in the coastwise trade; and 
‘‘(2) has been issued a certificate of documentation with 
a coastwise endorsement under chapter 121 of this title or 
is exempt from documentation but would otherwise be eligible 
for such a certificate and endorsement. 
‘‘(b) APPLICABLE TOWING.—Subsection (a) applies to the towing 
of—
‘‘(1) a vessel between ports or places in the United States 
to which the coastwise laws apply, either directly or via a 
foreign port or place; 
‘‘(2) a vessel from point to point within the harbors of 
ports or places to which the coastwise laws apply; or
H. R. 1442—154
‘‘(3) a vessel transporting valueless material or dredged 
material, regardless of whether it has commercial value, from 
a point in the United States or on the high seas within the 
exclusive economic zone, to another point in the United States 
or on the high seas within the exclusive economic zone. 
‘‘(c) PENALTIES.—
‘‘(1) OWNER
AND
MASTER.—The owner and master of a 
vessel towing another vessel in violation of this section are 
each liable for a penalty of at least $350 but not more than 
$1,100. A penalty under this paragraph constitutes a lien on 
the vessel. The lien is enforceable in a district court of the 
United States for any district in which the vessel is found. 
Clearance may not be granted to the vessel until the penalties 
have been paid. 
‘‘(2) VESSEL.—In addition to the penalties under paragraph 
(1), the towing vessel is liable for a penalty of $60 per ton 
based on the tonnage of each towed vessel. 
‘‘§ 55112. Vessel escort operations and towing assistance 
‘‘(a) IN GENERAL.—Except in the case of a vessel in distress, 
only a vessel of the United States may perform the following escort 
vessel operations within the navigable waters of the United States: 
‘‘(1) Operations that commence or terminate at a port or 
place in the United States. 
‘‘(2) Operations required by United States law or regulation. 
‘‘(3) Operations provided in whole or in part within or 
through navigation facilities owned, maintained, or operated 
by the United States Government or the approaches to those 
facilities, other than facilities operated by the St. Lawrence 
Seaway Development Corporation on the St. Lawrence River 
portion of the Seaway. 
‘‘(b) ESCORT VESSELS.—For purposes of this section, an escort 
vessel is—
‘‘(1) any vessel that is assigned and dedicated to assist 
another vessel, whether or not tethered to that vessel, solely 
as a safety precaution to assist in controlling the speed or 
course of the assisted vessel in the event of a steering or 
propulsion equipment failure, or any other similar emergency 
circumstance, or in restricted waters where additional assist-
ance in maneuvering the vessel is required to ensure its safe 
operation; and 
‘‘(2) in the case of a vessel being towed under section 
55111 of this title, any vessel that is assigned and dedicated 
to the vessel being towed in addition to any towing vessel 
required under that section. 
‘‘(c) RELATIONSHIP TO OTHER LAW.—This section does not affect 
section 55111 of this title. 
‘‘(d) PENALTY.—A person violating this section is liable to the 
Government for a civil penalty of not more than $10,000 for each 
day during which the violation occurs. 
‘‘§ 55113. Use of foreign documented oil spill response vessels 
‘‘Notwithstanding any other provision of law, an oil spill 
response vessel documented under the laws of a foreign country 
may operate in waters of the United States on an emergency 
and temporary basis, for the purpose of recovering, transporting,
H. R. 1442—155
and unloading in a United States port oil discharged as a result 
of an oil spill in or near those waters, if—
‘‘(1) an adequate number and type of oil spill response 
vessels documented under the laws of the United States cannot 
be engaged to recover oil from an oil spill in or near those 
waters in a timely manner, as determined by the Federal 
On-Scene Coordinator for a discharge or threat of a discharge 
of oil; and 
‘‘(2) the foreign country has by its laws accorded to vessels 
of the United States the same privileges accorded to vessels 
of the foreign country under this section. 
‘‘§ 55114. Unloading fish from foreign vessels 
‘‘(a) PROHIBITIONS.—Except as otherwise provided by this sec-
tion or a treaty or convention to which the United States is a 
party, a foreign vessel may not unload, in a port of the United 
States—
‘‘(1) its catch of fish taken on board on the high seas 
or fish products processed from that catch of fish; or 
‘‘(2) fish or fish products taken on board that vessel on 
the high seas from a vessel engaged in fishing operations or 
the processing of fish or fish products. 
‘‘(b) REGULATIONS ON OBTAINING INFORMATION.—The Secretary 
of Commerce may prescribe regulations the Secretary considers 
necessary to obtain information on the transportation of fish prod-
ucts by vessels of the United States for foreign fish processing 
vessels to points in the United States. 
‘‘(c) VIRGIN ISLANDS.—
‘‘(1) IN GENERAL.—A foreign vessel of not more than 50 
feet overall in length may unload its catch of fresh fish (whole 
or with the heads, viscera, or fins removed, but not frozen, 
otherwise processed, or further advanced) in a port of the 
Virgin Islands for immediate consumption in those islands. 
Fish unloaded under this paragraph may be sold or transferred 
only for immediate consumption. In the absence of satisfactory 
evidence that a sale or transfer to an agent, representative, 
or employee of a freezer or cannery is for immediate consump-
tion, the sale or transfer is deemed not to be for immediate 
consumption. This paragraph does not prohibit the freezing, 
smoking, or other processing of fresh fish by the ultimate 
consumer of the fish. 
‘‘(2) SEIZURE, FORFEITURE, AND PENALTY.—Fish unloaded 
in the Virgin Islands that are retained, sold, or transferred, 
except as allowed by paragraph (1), are liable to seizure by 
and forfeiture to the United States Government. A person 
retaining, selling, transferring, buying, or receiving the fish 
is liable to the Government for a civil penalty of not more 
than $1,000 for each violation. A penalty or forfeiture under 
this paragraph may be compromised, modified, or remitted 
under section 2107(b) of this title. 
‘‘(d) NORTHERN MARIANA ISLANDS.—Subsection (a) does not 
apply to the Northern Mariana Islands.
H. R. 1442—156
‘‘§ 55115. Supplies on fish processing vessels 
‘‘Section 55102 of this title does not apply to supplies aboard 
a United States documented fish processing vessel that are nec-
essary and used for processing or assembling fishery products 
aboard such a vessel. 
‘‘§ 55116. Canadian rail lines 
‘‘Section 55102 of this title does not apply to the transportation 
of merchandise between points in the continental United States, 
including Alaska, over through routes in part over Canadian rail 
lines and connecting water facilities if the routes are recognized 
by the Surface Transportation Board and rate tariffs for the routes 
have been filed with the Board. 
‘‘§ 55117. Great Lakes rail route 
‘‘Section 55102 of this title does not apply to the transportation 
of merchandise loaded on a railroad car or to a motor vehicle 
with or without a trailer, and with its passengers or contents 
when accompanied by the operator, when the railroad car or motor 
vehicle is transported in a railroad car ferry operated between 
fixed terminals on the Great Lakes as part of a rail route, if—
‘‘(1) the car ferry is owned by a common carrier by water 
and operated as part of a rail route with the approval of 
the Surface Transportation Board; 
‘‘(2) the stock of the common carrier by water, or its prede-
cessor, was owned or controlled by a common carrier by rail 
prior to June 5, 1920; 
‘‘(3) the stock of the common carrier owning the car ferry 
is, with the approval of the Board, now owned or controlled 
by a common carrier by rail; and 
‘‘(4) the car ferry is built in and documented under the 
laws of the United States. 
‘‘§ 55118. Foreign railroads whose road enters by ferry, tug-
boat, or towboat 
‘‘A foreign railroad, whose road enters the United States by 
ferry, tugboat, or towboat, may own and operate a vessel not having 
a coastwise endorsement in connection with the water transpor-
tation of the passenger, freight, express, baggage, and mail cars 
used by that road, together with the passengers, freight, express 
matter, baggage, and mails transported in those cars. However, 
the foreign railroad is subject to the same restrictions imposed 
by law on a vessel of the United States entering a port of the 
United States from the same foreign country. Except as otherwise 
authorized by this chapter, the ferry, tugboat, or towboat may 
not, under penalty of forfeiture, be used in the transportation of 
merchandise between ports or places in the United States to which 
the coastwise laws apply. 
‘‘§ 55119. Yukon River 
‘‘Section 55102 of this title does not apply to the transportation 
of merchandise on the Yukon River until the Alaska Railroad is 
completed and the Secretary of Transportation finds that proper 
facilities will be available for transportation by citizens of the 
United States to properly handle the traffic.
H. R. 1442—157
‘‘§ 55120. Transshipment of imported merchandise intended 
for immediate exportation 
‘‘The Secretary of Homeland Security may prescribe regulations 
for the transshipment and transportation of merchandise that is 
imported into the United States by sea for immediate exportation 
to a foreign port by sea, or by a river, the right to ascend or 
descend which for the purposes of commerce is secured by treaty 
to the citizens of the United States and the subjects of a foreign 
power. 
‘‘§ 55121. Transportation of merchandise and passengers on 
Canadian vessels 
‘‘(a) BETWEEN ROCHESTER AND ALEXANDRIA BAY.—Until pas-
senger service is established by vessels of the United States between 
the port of Rochester, New York, and the port of Alexandria Bay, 
New York, the Secretary of Homeland Security may issue annually 
permits to Canadian passenger vessels to transport passengers 
between those ports. Canadian vessels holding such a permit are 
not subject to section 55103 of this title. 
‘‘(b) WITHIN ALASKA OR BETWEEN ALASKA AND OTHER POINTS 
IN
THE UNITED STATES.—Until the Secretary of Transportation 
determines that service by vessels of the United States is available 
to provide the transportation described in paragraph (1) or (2), 
sections 55102 and 55103 of this title do not apply to the transpor-
tation on Canadian vessels of—
‘‘(1) passengers between ports in southeastern Alaska; or 
‘‘(2) passengers or merchandise between Hyder, Alaska, 
and other points in southeastern Alaska or in the United States 
outside Alaska.
‘‘CHAPTER 553—PASSENGER AND CARGO PREFERENCES
‘‘SUBCHAPTER I—GENERAL 
‘‘Sec. 
‘‘55301.
Priority loading for coal. 
‘‘55302.
Transportation of United States Government personnel. 
‘‘55303.
Motor vehicles owned by United States Government personnel. 
‘‘55304.
Exports financed by the United States Government. 
‘‘55305.
Cargoes procured, furnished, or financed by the United States Govern-
ment. 
‘‘SUBCHAPTER II—EXPORT TRANSPORTATION OF AGRICULTURAL 
COMMODITIES 
‘‘55311.
Findings and purposes. 
‘‘55312.
Determining prevailing world market price. 
‘‘55313.
Exemption of certain agricultural exports from cargo preference provisions. 
‘‘55314.
Transportation requirements for certain exports sponsored by the Sec-
retary of Agriculture. 
‘‘55315.
Minimum tonnage. 
‘‘55316.
Financing the transportation of agricultural commodities. 
‘‘55317.
Termination of subchapter. 
‘‘55318.
Effect on other law. 
‘‘SUBCHAPTER III—AMERICAN GREAT LAKES VESSELS 
‘‘55331.
Definitions. 
‘‘55332.
Designating American Great Lakes vessels. 
‘‘55333.
Exemption from restriction on transporting certain cargo. 
‘‘55334.
Restrictions on operations. 
‘‘55335.
Revocations and terminations of designations. 
‘‘55336.
Civil penalty.
H. R. 1442—158
‘‘SUBCHAPTER I—GENERAL 
‘‘§ 55301. Priority loading for coal 
‘‘A vessel engaged in the coastwise transportation of coal pro-
duced in the United States, from a port in the United States 
to another port in the United States, shall be given priority in 
loading at any of those ports ahead of a waiting vessel engaged 
in the export transportation of coal produced in the United States. 
However, if the Secretary of Transportation finds that it is in 
the national interest, the Secretary may eliminate this priority 
loading at any port. The Secretary shall report to Congress within 
30 days an action eliminating priority loading under this section. 
‘‘§ 55302. Transportation of United States Government per-
sonnel 
‘‘(a) IN GENERAL.—An officer or employee of the United States 
Government traveling by sea on official business overseas or to 
or from a territory or possession of the United States shall travel 
and transport personal effects on a vessel documented under the 
laws of the United Sates if such a vessel is available, unless the 
necessity of the mission requires the use of a foreign vessel. 
‘‘(b) REGULATIONS.—The Administrator of General Services 
shall prescribe regulations under which agencies may not pay for 
or reimburse an officer or employee for travel or transportation 
expenses incurred on a foreign vessel in the absence of satisfactory 
proof of the necessity of using the vessel. 
‘‘§ 55303. Motor vehicles owned by United States Govern-
ment personnel 
‘‘Notwithstanding any other law, privately-owned American 
shipping services may be used to transport motor vehicles owned 
by personnel of the United States Government whenever transpor-
tation of those vehicles at Government expense is otherwise author-
ized by law. 
‘‘§ 55304. Exports financed by the United States Government 
‘‘It is the sense of Congress that any loans made by an 
instrumentality of the United States Government to foster the 
exporting of agricultural or other products shall provide that the 
products may be transported only on vessels of the United States 
unless, as to any or all of those products, the Secretary of Transpor-
tation, after investigation, certifies to the instrumentality that ves-
sels of the United States are not available in sufficient number, 
in sufficient tonnage capacity, on necessary schedules, or at reason-
able rates. 
‘‘§ 55305. Cargoes procured, furnished, or financed by the 
United States Government 
‘‘(a) DEFINITION.—In this section, the term ‘privately-owned 
commercial vessel of the United States’ does not include a vessel 
that, after September 21, 1961, was built or rebuilt outside the 
United States or documented under the laws of a foreign country, 
until the vessel has been documented under the laws of the United 
States for at least 3 years. 
‘‘(b) MINIMUM TONNAGE.—When the United States Government 
procures, contracts for, or otherwise obtains for its own account, 
or furnishes to or for the account of a foreign country without
H. R. 1442—159
provision for reimbursement, any equipment, materials, or commod-
ities, within or without the United States, or advances funds or 
credits, or guarantees the convertibility of foreign currencies in 
connection with the furnishing of the equipment, materials, or 
commodities, the appropriate agencies shall take steps necessary 
and practicable to ensure that at least 50 percent of the gross 
tonnage of the equipment, materials, or commodities (computed 
separately for dry bulk carriers, dry cargo liners, and tankers) 
which may be transported on ocean vessels is transported on pri-
vately-owned commercial vessels of the United States, to the extent 
those vessels are available at fair and reasonable rates for commer-
cial vessels of the United States, in a manner that will ensure 
a fair and reasonable participation of commercial vessels of the 
United States in those cargoes by geographic areas. 
‘‘(c) WAIVERS.—The President, the Secretary of Defense, or Con-
gress (by concurrent resolution or otherwise) may waive this section 
temporarily by—
‘‘(1) declaring the existence of an emergency justifying a 
waiver; and 
‘‘(2) notifying the appropriate agencies of the waiver. 
‘‘(d) PROGRAMS OF OTHER AGENCIES.—An agency having respon-
sibility under this section shall administer its programs with respect 
to this section under regulations prescribed by the Secretary of 
Transportation. The Secretary shall review the administration of 
those programs and report annually to Congress on their adminis-
tration. 
‘‘SUBCHAPTER II—EXPORT TRANSPORTATION OF 
AGRICULTURAL COMMODITIES 
‘‘§ 55311. Findings and purposes 
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) a productive and healthy agricultural industry and 
a strong and active United States maritime industry are vitally 
important to the economic well-being and security of the United 
States; 
‘‘(2) both industries must compete in international markets 
increasingly dominated by foreign trade barriers and the sub-
sidization practices of foreign governments; and 
‘‘(3) increased agricultural exports and the use of merchant 
vessels of the United States contribute positively to the United 
States balance of trade and generate employment opportunities 
in the United States. 
‘‘(b) PURPOSES.—The purposes of this subchapter are to—
‘‘(1) enable the Secretary of Agriculture to plan export 
programs effectively, by clarifying the ocean transportation 
requirements applicable to those programs; 
‘‘(2) take immediate and positive steps to promote the 
growth of the cargo-carrying capacity of the United States 
merchant marine; 
‘‘(3) expand international trade in United States agricul-
tural commodities and products and develop, maintain, and 
expand markets for United States agricultural exports; 
‘‘(4) improve the efficiency of administration of both the 
commodity purchasing and selling activities and the ocean 
transportation activities associated with export programs spon-
sored by the Secretary;
H. R. 1442—160
‘‘(5) stimulate and promote the agricultural and maritime 
industries of the United States and encourage cooperative 
efforts by both industries to address their common problems; 
and 
‘‘(6) provide for the appropriate disposition of these findings 
and purposes. 
‘‘§ 55312. Determining prevailing world market price 
‘‘(a) AGRICULTURAL COMMODITIES
AND PRODUCTS.—The pre-
vailing world market price for agricultural commodities or their 
products shall be determined under this subchapter under proce-
dures prescribed by the Secretary of Agriculture. The Secretary 
shall prescribe the procedures by regulation, with notice and oppor-
tunity for public comment under section 553 of title 5. 
‘‘(b) SERVICES
AND
NON-AGRICULTURAL
COMMODITIES
AND 
PRODUCTS.—If a determination of the prevailing world market price 
of any other type of materials, goods, equipment, or service is 
required to determine whether a barter or exchange transaction 
is subject to section 55314(b)(6) or (7) of this title, the determination 
shall be made by the Secretary of Agriculture in consultation with 
the heads of other appropriate agencies. 
‘‘§ 55313. Exemption of certain agricultural exports from 
cargo preference provisions 
‘‘Sections 55304 and 55305 of this title do not apply to export 
activities of the Secretary of Agriculture or the Commodity Credit 
Corporation under which—
‘‘(1) agricultural commodities or their products acquired 
by the Corporation are made available to United States 
exporters, users, processors, or foreign purchasers for the pur-
pose of developing, maintaining, or expanding export markets 
for United States agricultural commodities or their products 
at prevailing world market prices; 
‘‘(2) payments are made available to United States 
exporters, users, or processors or, except as provided in section 
55314 of this title, cash grants are made available to foreign 
purchasers, for the purpose described in paragraph (1); 
‘‘(3) commercial credit guarantees are blended with direct 
credits from the Corporation to reduce the effective rate of 
interest on export sales of United States agricultural commod-
ities or their products; 
‘‘(4) credit or credit guarantees for not more than 3 years 
are extended by the Corporation to finance or guarantee export 
sales of United States agricultural commodities or their prod-
ucts; or 
‘‘(5) agricultural commodities or their products owned or 
controlled by or under loan from the Corporation are exchanged 
or bartered for materials, goods, equipment, or services at least 
equal in value to the agricultural commodities or their products 
for which they are exchanged or bartered (determined on the 
basis of prevailing world market prices at the time of the 
exchange or barter), but this paragraph does not exempt from 
the cargo preference provisions referred to in section 55314(b) 
of this title any requirement otherwise applicable to the mate-
rials, goods, equipment, or services imported under the trans-
action.