I
104TH CONGRESS
2D SESSION
H. R. 4006
To reform the coastwise, intercoastal, and noncontiguous trade shipping laws,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1996
Mr. SMITH of Michigan introduced the following bill; which was referred to
the Committee on Transportation and Infrastructure, and in addition to
the Committee on National Security, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To reform the coastwise, intercoastal, and noncontiguous
trade shipping laws, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Coastal Shipping Competition Act of 1996’’.
(b) FINDINGS.—The Congress finds the following:
(1) Efficient, competitive, broadly available wa-
terborne cargo transportation service is an essential
component of a national intermodal transportation
system, and such services should be promoted by the
United States.
(2) In the last several decades, the size of the
active United States domestic deepwater fleet has
shrunk substantially, to a total of only 126 ocean-
going vessels and 59 vessels in the Great Lakes
today.
(3) The result has been shipping shortages,
higher prices, and significant commercial transpor-
tation inefficiencies, all of which can be alleviated,
without any cost to the taxpayer, by increasing com-
petition in domestic deepwater shipping.
(4) Such inefficiencies undermine the competi-
tive position of a broad range of American busi-
nesses, particularly in potential domestic markets,
versus their foreign competition. These shipping
shortages and higher-than-market prices have led to
the loss of American jobs to overseas competitors
able to purchase transportation services on the inter-
national market.
(5) Lack of access to adequate deepwater com-
mercial waterborne transportation alternatives sup-
presses economic activity in an amount of more than
$10,000,000,000 annually and causes the loss of as-
sociated tax revenue, according to a study by the
United States International Trade Commission.
(6) American mariners and water carriers are
dedicated to providing the high-quality service that
their customers deserve, but flexibility in capital in-
vestment is needed to acquire the modern equipment
essential to satisfy the current and potential demand
for superior deep-sea domestic cargo transportation
service.
(7) Eliminating international capital investment
restrictions on the deep-sea domestic transportation
industry will help American ocean transportation
companies to provide the world class service Amer-
ican manufacturers, farmers, consumers, and tax-
payers deserve.
(8) Similarly, permitting domestic transpor-
tation service providers to purchase their vessels on
the international market without penalty will lower
their operating expenses, creating savings which they
can pass on to their customers in the form of lower
prices and improved efficiency.
(9) Allowing American domestic deepwater com-
mercial carriers to comply with appropriate inter-
national operating and construction standards to
which the United States is a party through treaties
and conventions will further lower operating ex-
penses and reduce the cost of the service provided by
those companies.
(10) Rationalizing the tort and liability provi-
sions governing the maritime industry will help re-
duce the insurance costs of employers and diminish
the need for costly and contentious litigation to set-
tle worker injury claims.
(11) Liberalizing the regulations currently gov-
erning the domestic deep-sea transportation of cargo
will encourage a renaissance in the Nation’s water-
borne coastal trades, reducing highway congestion,
road damage, and air and noise pollution, and will
substantially contribute to the ability of American
commercial enterprise to compete against foreign
companies.
(12) Foreign shipowner income derived from
coastwise trade is United States-source income for
purposes of Federal tax laws.
SEC. 2. MISCELLANEOUS AMENDMENTS TO DEFINITIONS IN
TITLE 46, UNITED STATES CODE.
Section 2101 of title 46, United States Code, is
amended—
(1) in each of paragraphs (1) through (45), by
striking the period at the end and inserting a semi-
colon;
(2) in paragraph (46), by striking the period at
the end and inserting ‘‘; and’’;
(3) by striking paragraph (3a) and inserting
the following:
‘‘(3a) ‘citizen of the United States’ means—
‘‘(A)(i) a national of the United States, as
defined in section 101(a)(22) of the Immigra-
tion 
and 
Nationality 
Act 
(8 
U.S.C.
1101(a)(22));
‘‘(ii) a corporation established under the
laws of the United States or under the laws of
a State, territory, district, or possession of the
United States, that has—
‘‘(I) a president or other chief execu-
tive officer and chairman of the board of
directors of that corporation who are citi-
zens of the United States; and
‘‘(II) a board of directors, on which a
majority of the number of directors nec-
essary to constitute a quorum are citizens
of the United States;
‘‘(iii) a partnership existing under the laws
of a State, territory, district, or possession of
the United States that has at least 1 general
partner who is a citizen of the United States;
‘‘(iv) a trust that has at least 1 trustee
who is a citizen of the United States; or
‘‘(v) an association, joint venture, limited
liability company or partnership, or other entity
that has at least 1 member who is a citizen of
the United States; but
‘‘(B) such term does not include—
‘‘(i) with respect to a person or entity
under clause (ii), (iii), or (v) of subpara-
graph (A), any parent corporation, part-
nership, or other person (other than an in-
dividual) or entity that is a second-tier
owner (as that term is defined by the Sec-
retary) of the person or entity involved; or
‘‘(ii) with respect to a trust under
clause (iv), any beneficiary of the trust.’’;
(4) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(4a) ‘coastwise trade’—
‘‘(A) subject to subparagraph (B), means
the transportation by water of merchandise or
passengers, the towing of a vessel by a towing
vessel, or dredging operations embraced within
the coastwise laws of the United States—
‘‘(i) between points in the United
States (including any district, territory, or
possession of the United States);
‘‘(ii) on the Great Lakes (including
any tributary or connecting waters of the
Great Lakes and the Saint Lawrence Sea-
way);
‘‘(iii) on the subjacent waters of the
Outer Continental Shelf subject to the
Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.); and
‘‘(iv) in the noncontiguous trade; and
‘‘(B) does not include the activities speci-
fied in subparagraph (A) on the navigable wa-
ters included in the inland waterways trade ex-
cept for activities specified in subparagraph (A)
that occur on mixed waters.’’;
(5) by inserting after paragraph (11c) the fol-
lowing new paragraph:
‘‘(11d) ‘foreign qualified vessel’ means a ves-
sel—
‘‘(A) registered in a foreign country; and
‘‘(B) the owner, operator, or charterer of
which is a citizen of the United States or—
‘‘(i) has qualified to engage in busi-
ness in a State and has an agent in that
State upon whom service of process may be
made;
‘‘(ii) is subject to the laws of the
United States in the same manner as any
foreign person doing business in the Unit-
ed States; and
‘‘(iii) either—
‘‘(I) employs vessels in the coast-
wise trade regularly or from time to
time as part of a regularly scheduled
freight service in the foreign ocean
(including the Great Lakes) trades of
the United States; or
‘‘(II) offers passage or cruises on
passenger vessels the owner, operator,
or charterer employs in the coastwise
trade or in the coastwise trade as part
of those cruises offered in the foreign
ocean (including the Great Lakes)
trades of the United States.’’;
(6) by redesignating paragraph (14a) as para-
graph (14b);
(7) by inserting after paragraph (14) the fol-
lowing new paragraph:
‘‘(14a) ‘inland waterways trade’—
‘‘(A) means—
‘‘(i) the transportation of merchandise
or passengers on the navigable rivers, ca-
nals, lakes other than the Great Lakes, or
other waterways inside the Boundary Line;
‘‘(ii) the towing of barges by towing
vessels in the waters specified in clause (i);
or
‘‘(iii) engaging in dredging operations
in the waters specified in clause (i); and
‘‘(B) includes any activity specified in sub-
paragraph (A) that is conducted in mixed wa-
ters.’’;
(8) by redesignating paragraph (15a) as para-
graph (15b);
(9) by inserting after paragraph (15) the fol-
lowing:
‘‘(15a) ‘mixed waters’ means—
‘‘(A) the harbors and ports on the coasts
and Great Lakes of the United States; and
‘‘(B) the rivers, canals, and other water-
ways tributary to the Great Lakes or to the
coastal harbors and coasts of the United States
inside the Boundary Line,
that the Secretary of Transportation determines to
be navigable by oceangoing vessels.’’;
(10) by redesignating paragraph (17a) as para-
graph (17b);
(11) by inserting after paragraph (17) the fol-
lowing:
‘‘(17a) ‘noncontiguous trade’ means transpor-
tation by water of merchandise or passengers, or
towing by towing vessels—
‘‘(A) between—
‘‘(i) a point in the 48 continental
States and the District of Columbia; and
‘‘(ii) a point in Hawaii, Alaska, Puer-
to Rico, Guam, the Virgin Islands, Amer-
ican Samoa, the Northern Mariana Is-
lands, or any other noncontiguous territory
or possession of the United States, as em-
braced within the coastwise laws of the
United States; or
‘‘(B) between 2 points described in sub-
paragraph (A)(ii).’’;
(12) in paragraph (21)(A)—
(A) in clause (ii), by striking ‘‘or’’ after
the semicolon;
(B) in clause (iii), by inserting ‘‘or’’ after
the semicolon; and
(C) by adding at the end the following new
clause:
‘‘(iv) an individual who—
‘‘(I) is a member of the family or
a guest of the owner or charterer; and
‘‘(II) is not a passenger for
hire;’’;
(13) by striking paragraph (40) and inserting
the following:
‘‘(40) ‘towing vessel’ means any commercial
vessel engaged in, or that a person intends to use to
engage in, the service of—
‘‘(A) towing, pulling, pushing, or hauling
alongside (or any combination thereof); or
‘‘(B) assisting in towing, pulling, pushing,
or hauling alongside;’’; and
(14) by inserting after paragraph (40) the fol-
lowing new paragraphs:
‘‘(40a) ‘towing of a vessel by a towing vessel be-
tween points’ means attaching a towing vessel to a
towed vessel (including any barge) at 1 point and re-
leasing the towed vessel from the towing vessel at
another point, regardless of the origin or ultimate
destination of either the towed vessel or the towing
vessel; and
‘‘(40b) ‘transportation of merchandise or pas-
sengers by water between points’ means, without re-
gard to the origin or ultimate destination of the
merchandise or passengers involved—
‘‘(A) in the case of merchandise, loading
merchandise at 1 point and permanently un-
loading the merchandise at another point; or
‘‘(B) in the case of passengers, embarking
passengers at 1 point and permanently dis-
embarking the passengers at another point.’’.
SEC. 3. DOCUMENTATION.
(a) DEFINITIONS.—Section 12101(b)(2) of title 46,
United States Code, is amended—
(1) by striking paragraph (2) and inserting the
following:
‘‘(2) ‘license’, ‘enrollment and license’, ‘license
for the coastwise (or coasting) trade’, ‘enrollment
and license for the coastwise (or coasting) trade’,
and ‘enrollment and license to engage in the foreign
and coastwise (or coasting) trade on the northern,
northeastern, and northwestern frontiers, otherwise
than by sea’ mean a coastwise endorsement provided
in section 12106.’’;
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as para-
graph (3).
(b) VESSELS ELIGIBLE FOR DOCUMENTATION.—Sec-
tion 12102(a) of title 46, United States Code, is amend-
ed—
(1) by striking all that precedes paragraph (5)
and inserting the following:
‘‘(a) A vessel of at least 5 net tons that is not reg-
istered under the laws of a foreign country or that is not
titled in a State is eligible for documentation if—
‘‘(1)(A) the vessel is owned by an individual
who is a citizen of the United States, or a corpora-
tion, association, trust, joint venture, partnership,
limited liability company, or other entity that is a
citizen of the United States; and
‘‘(B) the owner of the vessel is capable of hold-
ing title to a vessel under the laws of the United
States or under the laws of a State;’’; and
(2) by redesignating paragraphs (5) and (6) as
paragraphs (2) and (3), respectively.
(c) COASTWISE ENDORSEMENTS.—Section 12106 of
title 46, United States Code, is amended to read as fol-
lows:
‘‘§ 12106. Coastwise endorsements and certificates
‘‘(a) IN GENERAL.—A certificate of documentation
may be endorsed with a coastwise endorsement for a vessel
that is eligible for documentation.
‘‘(b) ELIGIBILITY.—
‘‘(1) IN GENERAL.—Any of the following vessels
may be issued a certificate to engage in the coast-
wise trade if the Secretary of Transportation makes
a finding, pursuant to information obtained and fur-
nished by the Secretary of State, that the govern-
ment of the nation of registry of such vessel extends
reciprocal privileges to vessels of the United States
to engage in the transportation of merchandise or
passengers (or both) in its coastwise trade:
‘‘(A) A foreign qualified vessel (as defined
in section 2101(11d)).
‘‘(B) A vessel of foreign registry—
‘‘(i) if the vessel is subject to a demise
or bareboat charter, for the duration of
that charter, to a person or entity that
would be eligible to document that vessel if
that person or entity were the owner of the
vessel; or
‘‘(ii) that engages irregularly in the
coastwise trade of the United States.
‘‘(2) VESSEL ENGAGING IRREGULARLY IN THE
COASTWISE
TRADE.—For purposes of this sub-
section, a vessel engages irregularly in the coastwise
trade of the United States if that vessel—
‘‘(A) during any 60-day period does not
make, in the aggregate, more than 4 calls to
United States ports; and
‘‘(B) during any calendar year does not
make, in the aggregate, more than 6 calls to
United States ports.
‘‘(c) EMPLOYMENT IN THE COASTWISE TRADE.—
Subject to the applicable laws of the United States regu-
lating the coastwise trade and trade with Canada, only
a vessel with a certificate of documentation endorsed with
a coastwise endorsement or with a certificate issued under
subsection (b) may be employed in the coastwise trade.’’.
(d) INLAND WATERWAYS ENDORSEMENTS.—Section
12107 of title 46, United States Code, is amended to read
as follows:
‘‘§ 12107. Inland waterways endorsements
‘‘A certificate of documentation may be endorsed with
an inland waterways endorsement for a vessel that—
‘‘(1) is eligible for documentation; and
‘‘(2)(A) was built in the United States; or
‘‘(B) was not built in the United States; but
was—
‘‘(i) captured in war by citizens of the
United States and lawfully condemned as prize;
‘‘(ii) adjudged to be forfeited for a breach
of the laws of the United States; or
‘‘(iii) is qualified for documentation under
section 4136 of the Revised Statutes (46 App.
U.S.C. 14).’’.
(e) LIMITATIONS ON OPERATIONS AUTHORIZED BY
CERTIFICATES.—Section 12110(b) of title 46, United
States Code, is amended—
(1) by striking ‘‘coastwise trade’’ and inserting
‘‘coastwise trade or inland waterways trade’’; and
(2) by striking ‘‘that trade’’ and inserting
‘‘those trades’’.
SEC. 4. TRANSPORTATION OF MERCHANDISE IN THE
COASTWISE 
AND 
INLAND 
WATERWAYS
TRADES.
(a) IN GENERAL.—Section 27 of the Merchant Ma-
rine Act, 1920 (46 U.S.C. App. 883) is amended to read
as follows:
‘‘SEC. 27. PROHIBITION.
‘‘No merchandise, including merchandise owned by
the United States Government, a State (as defined in sec-
tion 2101 of title 46, United States Code), or a political
subdivision of a State, and including material without
value, shall be transported by water, on penalty of forfeit-
ure of the merchandise (or a monetary amount not to ex-
ceed the value of the merchandise, as determined by the
Secretary of the Treasury, or the actual cost of the trans-
portation, whichever is greater, to be recovered from any
cosigner, seller, owner, importer, consignee, agent, or
other person that transports or causes the merchandise
to be transported by water)—
‘‘(1) in the coastwise trade, in any vessel other
than—
‘‘(A) a vessel documented with a coastwise
endorsement under section 12106(a) of title 46,
United States Code; or
‘‘(B) a vessel that has been issued coast-
wise certification under section 12106(b) of title
46, United States Code, that is in effect for en-
gaging in the transportation of merchandise; or
‘‘(2) in the inland waterways trade in any vessel
other than a vessel documented with an inland wa-
terways endorsement under section 12107 of title
46, United States Code.’’.
(b) REPEAL.—Section 27A of the Merchant Marine
Act, 1920 (46 App. U.S.C. 883–1) is repealed.
SEC. 5. TRANSPORTATION OF PASSENGERS.
(a) IN GENERAL.—Section 8 of the Act of June 19,
1886 (24 Stat. 81, chapter 421; 46 U.S.C. App. 289) is
amended to read as follows:
‘‘SEC. 8. PROHIBITION.
‘‘No passengers shall be transported by water, on
penalty of $200 for each passenger so transported or the
actual cost of the transportation, whichever is greater, to
be recovered from the vessel so transporting the pas-
senger—
‘‘(1) in the coastwise trade, in any vessel other
than—
‘‘(A) a vessel documented with a coastwise
endorsement under section 12106 of title 46,
United States Code; or
‘‘(B) a vessel that has been issued a coast-
wise certification under section 12106(b) of title
46, United States Code, that is in effect for en-
gaging in the transportation of merchandise;
and
‘‘(2) in the inland waterways trade, in any ves-
sel other than a vessel documented with an inland
waterways endorsement under section 12107 of title
46, United States Code.’’.
(b) REPEALS.—The following provisions are repealed:
(1) The Act of April 26, 1938 (52 Stat. 223,
chapter 174; 46 U.S.C. App. 289a).
(2) Section 12(22) of the Maritime Act of 1981
(46 U.S.C. App. 289b).
(3) Public Law 98–563 (46 U.S.C. App. 289c).
SEC. 6. TOWING AND SALVAGING OPERATIONS.
Section 4370(a) of the Revised Statutes (46 U.S.C.
App. 316(a)) is amended to read as follows:
‘‘(a)(1) No vessel (including any barge), other than
a vessel in distress, may be towed—
‘‘(A) in the coastwise trade by any vessel other
than—
‘‘(i) a vessel documented with a coastwise
endorsement under section 12106(a) of title 46,
United States Code; or
‘‘(ii) a vessel registered in a foreign coun-
try, if the Secretary of the Treasury finds, pur-
suant to information furnished by the Secretary
of State, that the government of that foreign
country and the government of the country of
which each ultimate owner of the towing vessel
is a citizen extend reciprocal privileges to ves-
sels of the United States to tow vessels (includ-
ing barges) in the coastal waters of that coun-
try; or
‘‘(B) in the inland waterways trade by any ves-
sel other than a vessel documented with an inland
waterways endorsement under section 12107 of title
46, United States Code.
‘‘(2)(A) The owner and master of any vessel that
tows another vessel (including a barge) in violation of this
section shall each be liable to the United States Govern-
ment for a civil penalty in an amount not less than $250
and not greater than $1,000. The penalty shall be enforce-
able through the district court of the United States for
any district in which the offending vessel is found.
‘‘(B) A penalty specified in subparagraph (A) shall
constitute a lien upon the offending vessel, and that vessel
shall not be granted clearance until that penalty is paid.
‘‘(C) In addition to the penalty specified in subpara-
graph (A), the offending vessel shall be liable to the Unit-
ed States Government for a civil penalty in an amount
equal to $50 per ton of the measurement of the vessel
towed in violation of this section, which shall be recover-
able in a libel or other enforcement action conducted
through the district court for the United States for the
district in which the offending vessel is found.’’.
SEC. 7. DREDGING OPERATIONS.
The first section of the Act of May 28, 1906 (34 Stat.
204, chapter 2566; 46 U.S.C. App. 292), is amended to
read as follows:
‘‘SECTION 1. VESSELS THAT MAY ENGAGE IN DREDGING.
‘‘(a) IN GENERAL.—A vessel may engage in dredging
operations—
‘‘(1) on the navigable waters included in the
coastwise trade, if—
‘‘(A) the vessel is documented with a coast-
wise endorsement under section 12106(a) of
title 46, United States Code; or
‘‘(B) the vessel is registered in a foreign
country and the Secretary of the Treasury
finds, pursuant to information furnished by the
Secretary of State, that the government of that
foreign country and each government of the
country of which an ultimate owner of the ves-
sel is a citizen extend reciprocal privileges to
vessels of the United States to engage in dredg-
ing operations in the coastal waters of that
country; or
‘‘(2) on the navigable waters included in the in-
land waterways trade, if—
‘‘(A) the vessel is documented with an in-
land waterways endorsement under section
12107 of title 46, United States Code; or
‘‘(B) the vessel would be qualified to be
documented under the laws of the United
States with a coastwise endorsement under sec-
tion 12106(a) of title 46, United States Code,
except that the vessel was not built in the Unit-
ed States.
‘‘(b) PENALTIES.—When a vessel is operated in
knowing violation of this section, that vessel and its equip-
ment are liable to seizure by and forfeiture to the United
States Government.’’.
SEC. 8. CITIZENSHIP AND TRANSFER PROVISIONS.
(a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS,
AND ASSOCIATIONS.—Section 2 of the Shipping Act, 1916
(46 U.S.C. App. 802) is amended—
(1) in subsection (a)—
(A) by inserting a period after ‘‘possession
thereof’’; and
(B) by striking all that follows the period
inserted in subparagraph (A) through the end
of the subsection; and
(2) by striking subsection (c).
(b) APPROVAL OF TRANSFER OF REGISTRY OR OP-
ERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR
FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES.—
Section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808)
is amended—
(1) by striking subsection (c) and inserting the
following:
‘‘(c) Except as provided in section 611 of the Mer-
chant Marine Act, 1936 (46 U.S.C. App. 1181) and sec-
tion 31322(a)(1)(D) of title 46, United States Code, a
person may not, without the approval of the Secretary of
Transportation—
‘‘(1) place under foreign registry—
‘‘(A) a documented vessel; or
‘‘(B) a vessel with respect to which the last
documentation was made under the laws of the
United States;
‘‘(2) operate a vessel referred to in paragraph
(1) under the authority of a foreign government; or
‘‘(3) scrap or transfer for scrapping a vessel re-
ferred to in paragraph (1) in a foreign country.’’;
and
(2) by striking subsection (d) and inserting the
following:
‘‘(d)(1) A person that places a documented vessel
under foreign registry, operates that vessel under the au-
thority of a foreign country, or scraps or transfers for
scrapping that vessel in a foreign country—
‘‘(A) in violation of this section and knowing
that that placement, operation, scrapping, or trans-
fer for scrapping is a violation of this section shall,
upon conviction, be fined under title 18, United
States Code, imprisoned for not more than 5 years,
or both; or
‘‘(B) otherwise in violation of this section shall
be liable to the United States Government for a civil
penalty of not more than $10,000 for each violation.
‘‘(2) A documented vessel may be seized by, and for-
feited to, the United States Government if that vessel is
placed under foreign registry, operated under the author-
ity of a foreign country, or scrapped or transferred for
scrapping in a foreign country in violation of this sec-
tion.’’.
SEC. 9. LABOR PROVISIONS.
(a) LIABILITY FOR INJURY OR DEATH OF MASTER
OR CREW MEMBER.—Section 20(a) of the Act of March
4, 1915 (38 Stat. 1185, chapter 153; 46 U.S.C. App.
688(a)), is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) by adding at the end of paragraph (1) (as
designated under paragraph (1) of this subsection)
the following new sentence: ‘‘In an action brought
under this subsection against a defendant employer
that does not reside or maintain an office in the
United States (including any territory or possession
of the United States) and that engages in any enter-
prise that makes use of 1 or more ports in the Unit-
ed States (as defined in section 2101 of title 46,
United States Code), jurisdiction shall be under the
district court most proximate to the place of the oc-
currence of the personal injury or death that is the
subject of the action.’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2)(A) The employer of a master or member of the
crew of a vessel—
‘‘(i) may, at the election of the employer, par-
ticipate in an authorized compensation plan under
the Longshore and Harbor Workers’ Compensation
Act (33 U.S.C. 901 et seq.); and
‘‘(ii) if the employer makes an election under
clause (i), notwithstanding section 2(3)(G) of the
Longshore and Harbor Workers’ Compensation Act
(33 U.S.C. 902(3)(G)), shall be subject to that Act.
‘‘(B) If an employer makes an election, in accordance
with subparagraph (A), to participate in an authorized
compensation plan under the Longshore and Harbor
Workers’ Compensation Act—
‘‘(i) a master or crew member employed by that
employer shall be considered to be an employee for
the purposes of that Act; and
‘‘(ii) the liability of that employer under that
Act to the master or crew member, or to any person
otherwise entitled to recover damages from the em-
ployer based on the injury, disability, or death of the
master or crew member, shall be exclusive and in
lieu of all other liability.’’.
(b) MINIMUM REQUIREMENTS.—All vessels, whether
documented in the United States or not, operating in the
coastwise trade of the United States shall be subject to
minimum international labor standards for seafarers
under international agreements in force for the United
States, as determined by the Secretary of Transportation
on the advice of the Secretaries of Labor and Defense.
SEC. 10. REGULATIONS REGARDING VESSELS.
(a) APPLICABLE MINIMUM REQUIREMENTS.—Except
as provided in paragraph (2), the minimum requirements
for vessels engaging in the transportation of cargo or mer-
chandise in the United States coastwise trade shall be the
recognized international standards in force for the United
States (as determined by the Secretary of the department
in which the Coast Guard is operating, in consultation
with any other official of the Federal Government that the
Secretary determines to be appropriate).
(b) CONSISTENCY
IN
APPLICATION
OF
STAND-
ARDS.—In any case in which any minimum requirement
for vessels referred to in paragraph (1) is inconsistent with
a minimum that is applicable to vessels that are docu-
mented in a foreign country and that are admitted to en-
gage in the transportation of cargo and merchandise in
the United States coastwise trade, the standard applicable
to United States documented vessels shall be deemed to
be the standard applicable to vessels that are documented
in a foreign country.
(c) MINIMUM REQUIREMENTS
FOR VESSELS.—As
used in this subsection, the term ‘‘minimum requirements
for vessels’’ means, with respect to vessels (including Unit-
ed States documented vessels and foreign documented ves-
sels), all safety, manning, inspection, construction, and
equipment requirements applicable to those vessels in
United States coastwise passenger trade, to the extent
that those requirements are consistent with applicable
international law and treaties to which the United States
is a signatory.
SEC. 11. ENVIRONMENT.
All vessels, whether documented under the laws of the
United States or not, regularly engaging in the United
States coastwise trade shall comply with all applicable
United States and international environmental standards
in force for the United States.
SEC. 12. GENERAL REQUIREMENTS.
Each person or entity that is not a citizen of the
United States, as defined in section 2101(3a) of title 46,
United States Code, that owns or operates vessels that
regularly engage in the United States domestic coastwise
trade shall—
(1) establish an office or place, and qualify
under the laws of that place, to do business in the
United States;
(2) name an agent upon whom process may be
served;
(3) abide by all applicable laws of the United
States, including applicable environmental, labor,
and tax laws; and
(4) post evidence of—
(A) financial responsibility in amounts as
considered necessary by the Secretary of Trans-
portation for the business activities of that per-
son or entity; and
(B) compliance with applicable United
States laws.
Æ