1625-0078 Stat/Auth

USCODE-2011-title46_Chapter 71_Chapter 75.pdf

Credentialing and Manning Requirements for Officers on Towing Vessels

1625-0078 Stat/Auth

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TITLE 46—SHIPPING
This title was enacted by Pub. L. 98–89, § 1, Aug. 26, 1983, 97 Stat. 500; Pub. L. 99–509, title V, subtitle B,
§ 5101, Oct. 21, 1986, 100 Stat. 1913; Pub. L. 100–424, § 6, Sept. 9, 1988, 102 Stat. 1591; Pub. L. 100–710,
title I, § 102, Nov. 23, 1988, 102 Stat. 4738; Pub. L. 109–304, Oct. 6, 2006, 120 Stat. 1485

Subtitle

I.
II.
III.
IV.
V.
VI.
VII.
VIII.

Sec.

GENERAL ..............................................
VESSELS AND SEAMEN ...................
MARITIME LIABILITY ......................
REGULATION OF OCEAN SHIPPING ...................................................
MERCHANT MARINE ........................
CLEARANCE, TONNAGE TAXES,
AND DUTIES ....................................
SECURITY AND DRUG ENFORCEMENT ..................................................
MISCELLANEOUS ..............................

101
2101
30101
40101
50101
60101
70101
80101

AMENDMENTS
2006—Pub. L. 109–304, § 3, Oct. 6, 2006, 120 Stat. 1485,
amended title analysis generally, adding item IV, substituting ‘‘50101’’ for ‘‘53101’’ in item V, adding item VI,
substituting ‘‘SECURITY AND DRUG ENFORCEMENT’’ for ‘‘MISCELLANEOUS’’ in item VII, and adding item VIII.
Pub. L. 109–241, title IX, § 901(k)(2), July 11, 2006, 120
Stat. 565, redesignated item VI ‘‘MISCELLANEOUS’’ as
item VII.
2003—Pub. L. 108–136, div. C, title XXXV, § 3531(b),
Nov. 24, 2003, 117 Stat. 1817, added item V.
2002—Pub. L. 107–295, title I, § 102(b), Nov. 25, 2002, 116
Stat. 2084, added item VI.
1988—Pub. L. 100–710, title I, § 102(b), Nov. 23, 1988, 102
Stat. 4738, amended title analysis generally, substituting ‘‘GENERAL’’ for ‘‘[Reserved—general]’’ in item I
and adding item III.
Disposition Table
(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)
Title 46 or Title 46 Appendix
Former Sections
1 ..............................................
2 ..............................................
3 note prec. (Act 12-27-1950,
§§ 1, 2).
3 ..............................................
4 ..............................................
5, 6 ..........................................
7 ..............................................
8 ..............................................
9(a), (b) ...................................
9(c) ..........................................
9(d) ..........................................
11, 12 .......................................
13 ............................................
14 (words before last proviso)
14 (last proviso) ......................
15–41 ........................................
42 ............................................
43–56 ........................................
57 ............................................
58 ............................................
59 ............................................
60–63 ........................................
65(1) ........................................
65(2) ........................................
65(3) ........................................

Page 1

Title 46
New Sections
Rep.
2103
501
Rep.
2105
Rep.
2107
2108
3316
Rep.
3316
Rep.
Rep.
12107
12151
Rep.
60103
Rep.
60102
Rep.
Rep.
Rep.
2101(10)
2101(11)
2101(34)

Disposition Table—Continued
(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)
Title 46 or Title 46 Appendix
Former Sections

Title 46
New Sections

65a ..........................................
65b ..........................................
65c ...........................................
65d ..........................................
65e ...........................................
65f ...........................................
65g ..........................................
65h ..........................................
65i ...........................................
65j ...........................................
65k ..........................................
65l ...........................................
65m .........................................
65n ..........................................
65o ...........................................
65p ..........................................
65q ..........................................
65r ...........................................
65s ...........................................
65t ...........................................
65u ..........................................
65v(1) .......................................
65v(2) .......................................
65w ..........................................
71 ............................................

12113
12102
12114
12115
12103
12116
12104
12105
12106
12107
12108
12109
12110
12122
12111
12112
12117
12118
12119
12120
2107, 12122(a)
2104
12121
12101
12102, 14102, 14104, 14501, 14502,
14504, 14511, 14521, 14522
14503
Rep.
14512
Rep.
14502, 14512
Rep.
(See former 660–1)
14306
3101
14502, 14513
14513
14102
14702
14701
2107
Rep.
5114, 5115
5101
5102
5102, 5103, 5104, 5106
5107
5108
5109
5112
5113
5116
5102
5104, 5108
5103, 5107
5112
5109
5112
5113
5116
Rep.
60105
Rep.
60106

72 ............................................
73, 74 .......................................
75 ............................................
76 ............................................
77 ............................................
78, 79 .......................................
80 ............................................
81 ............................................
82 ............................................
83 ............................................
83a–83g ....................................
83h ..........................................
83i ...........................................
83j ...........................................
83k ..........................................
85–85g ......................................
86 ............................................
86a ..........................................
86b ..........................................
86c ...........................................
86d ..........................................
86e ...........................................
86f ...........................................
86g ..........................................
86h ..........................................
86i ...........................................
88 ............................................
88a ..........................................
88b ..........................................
88c ...........................................
88d ..........................................
88e ...........................................
88f ...........................................
88g ..........................................
88h, 88i ....................................
91 ............................................
91a–96 ......................................
97 ............................................

TITLE 46—SHIPPING

Page 2

Disposition Table—Continued

Disposition Table—Continued

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

Title 46 or Title 46 Appendix
Former Sections

Title 46 or Title 46 Appendix
Former Sections

98 ............................................
99 ............................................
100 ...........................................
101, 102 ....................................
103 ...........................................
104 ...........................................
105–110 .....................................
111 ...........................................
112, 113 ....................................
121 (1st sentence) ....................
121 (2d sentence) .....................
121 (3d sentence related to distress).
121 (3d sentence related to
trade).
121 (4th sentence) ....................
121 (5th sentence words before
semicolon).
121 (5th sentence words after
semicolon).
121 (last sentence words before
semicolon).
121 (last sentence words after
semicolon).
122 ...........................................
123 ...........................................
124 ...........................................
125 ...........................................
126, 127 ....................................
128, 129 ....................................
130, 131 ....................................
132 ...........................................
133, 134 ....................................
135 ...........................................
141 ...........................................
142 ...........................................
143 ...........................................
144, 145 ....................................
146 ...........................................
151–162 .....................................
163 ...........................................
170 ...........................................
170(14) .....................................
170a, 170b .................................
171–175 .....................................
178, 179 ....................................
181 ...........................................
182 ...........................................
183(a) .......................................
183(b) (1st sentence) ................
183(b) (last sentence) ..............
183(c)–(e) .................................
183(f)
(related
to
46
App.:183(b)–(e)).
183(f) (related to 46 App.:183b)
183(g) .......................................
183a .........................................
183b .........................................
183c .........................................
184 ...........................................
185 ...........................................
186 ...........................................
187 ...........................................
188 ...........................................
189 ...........................................
190 ...........................................
191 ...........................................
192 ...........................................
193 ...........................................
194 ...........................................
195 ...........................................
196 ...........................................
201 ...........................................
202 ...........................................
203 ...........................................
211 ...........................................
212 ...........................................
213 ...........................................
214 ...........................................
214(c) .......................................
215 ...........................................
216(a) .......................................
216(b) .......................................
216(c) .......................................

Title 46
New Sections
60109
Rep.
60107
Rep.
Rep.
60504
Rep.
Elim.
Rep.
60302
60301
60305
60306
60302
60302
60304
60312
60302
60307
60308
60309
60310
Rep.
60303
Rep.
60301
60311
60312
60503
60505
60506
60507
60502
Rep.
60101
3306(a)(5), Rep. in part
2106
Rep.
Rep.
Rep.
30503
30504
30505
30506
30507
30506
30506
30508
30510
Rep.
30508
30509
30507
30511
30501
30512
30502
30505
30704
30705
30706
30703
30707
30702
Rep.
11301
11302
11303
8501(a)
8501(b)
8501(c), (e)
7101
7106
8501(d), 8502
9301(2)
2101(34)
9301(3)

216(d) .......................................
216(e), (f) .................................
216a .........................................
216b(a)–(c) ...............................
216b(d) .....................................
216b(e) .....................................
216c .........................................
216d .........................................
216e(a)–(c) ...............................
216e(d) .....................................
216e(e) .....................................
216f ..........................................
216g .........................................
216h .........................................
216i ..........................................
221 ...........................................
222 ...........................................
223 ...........................................
224 ...........................................
224a .........................................
224a(2) .....................................
225 ...........................................
226 ...........................................
227 ...........................................
228 ...........................................
229 ...........................................
229a .........................................
229b .........................................
229c .........................................
229d .........................................
229e .........................................
229f ..........................................
229g .........................................
229h .........................................
230 ...........................................
231 ...........................................
232 ...........................................
233 ...........................................
234 ...........................................
235 ...........................................
236 ...........................................
237, 238 ....................................
239 ...........................................
239(d) .......................................
239(e) .......................................
239(f) .......................................
239(g) .......................................
239(i) .......................................
239(j) .......................................
239(k) ......................................
239a(a) .....................................
239a(b) .....................................
239a(c) .....................................
239b(a) .....................................
239b(b) .....................................
240 ...........................................
241 ...........................................
242 ...........................................
243 ...........................................
244 ...........................................
245 ...........................................
246(a) .......................................
246(b) .......................................
246(c) .......................................
247 ...........................................
248 ...........................................
249–249c ...................................
251, 251a ..................................
251b .........................................
252–262 .....................................
263–276 .....................................
277 ...........................................
278–288 .....................................
289 ...........................................
289a, 289b .................................
289c .........................................
290 ...........................................
291 ...........................................
292 ...........................................
293–293b ...................................
294–315 .....................................
316(a), (b) ................................
316(c) .......................................
316(d), (e) ................................

Title 46
New Sections
9301(1)
Rep.
9302(a), (b), (d)
9303
9305
9304
9303
9305
9308
2107
2106
9302(c)
9306
9307
Rep.
8103
8101
8301
7101, 8101
8303, 8304
7111
7106, 7109, 7113
7101, 7106, 7703
Rep.
7101, 7106, 7703
7101, 7106, 7703
7101, 7103
7101, 7103
7106, 7108, 7318
Rep.
7105
7110
7103, 7318
Rep.
7112
7105
7110
7109
3315
8104
8103
Rep.
6101, 6301, 7703
6303
6304, 7705
6304
6305, 7701
6306
6301, 6307
6305
7503(a), 7704(a)
2101(34)
7302
7503(b)
7704(b), (c)
7703
8304
7101, 7102, 8302(a)–(d)
7101, 7104, 7107, 7108
7101, 7105
8302(g), (h)
8302(a)–(d)
Rep.
7703
7101
8302
Rep.
55114
Rep.
Rep.
Rep.
12133
Rep.
55103
55121
55104
Rep.
55120
55109
Rep.
Rep.
55111
55118
80104

Page 3

TITLE 46—SHIPPING
Disposition Table—Continued

Disposition Table—Continued

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

Title 46 or Title 46 Appendix
Former Sections

Title 46 or Title 46 Appendix
Former Sections

Title 46
New Sections

391a(8)(D) ................................
391a(8)(E) ................................
391a(9) .....................................
391a(10)(A) ...............................
391a(10)(B) ...............................
391a(10)(C) ...............................
391a(10)(D) ...............................
391a(11) ....................................
391a(12) ....................................
391a(13) ....................................
391a(14) ....................................
391a(14)(C) ...............................
391a(15) ....................................
391a(16) ....................................
391a(17) ....................................
391a(18) ....................................
391b .........................................
392 ...........................................
392(b) .......................................
393, 394 ....................................
395 ...........................................
395(d) .......................................
395(e) .......................................
396, 397 ....................................
398 ...........................................
399 ...........................................
400 ...........................................
401, 402 ....................................
403 ...........................................
404 ...........................................

3710
3710, 3711
9102
8703(a)
9101(b)
7317, 8703(b)
Rep. See 7701 et seq.
9101(a)
3703
3713
2107, 3718
2106
3714
3717
3715
3716
Rep.
3304–3306
3307(3)
Rep.
3301(6), 3305, 3311
3309
2101(32)
Rep.
3318
3309, 3311, 3314
3312
Rep.
3318
2101(13), (16), (17), 3301(1), 3302,
3306, 3307
3301(3), 3305, 3501
2101(19)
2101(21)(C)
3307(2), (3)
8301
Rep.
2101(40), 3301(9), 3305
8104
2101(34)
8904
8905(b)
3305
3305, 3318
3305, 3306, 3318
Rep.
3318
3306
3318
3310, 7502
Rep.
2104, 3306
(See former 416)
Rep.
3302, 3306
Rep.
3308, 3313
2106, 3318
Rep.
2101(18), 50503
2101(31), 50503
3302
50503
8701, 50503
2113, 3306
50504
Rep.
8101
3501
3501(b), (c)
2113
T. 33 §§ 1233–1236
Rep.
3306
3502
2106, 3501, 3502
Rep.
(See former 170)
Rep.
3901
3902
T. 15 § 1824a
Rep.
8102

316a .........................................
317, 318 ....................................
319 ...........................................
320–325 .....................................
326 ...........................................
327 ...........................................
328 ...........................................
329, 330 ....................................
331 ...........................................
332–336 .....................................
351–353 .....................................
354, 355 ....................................
361 ...........................................
362 ...........................................
362(a) .......................................
362(b) .......................................
362(c) .......................................
363 ...........................................
364 ...........................................
365 ...........................................
366 ...........................................
367 ...........................................
369 ...........................................
369(b) .......................................
369(e) .......................................
371 ...........................................
372 ...........................................
373–374a ...................................
375 ...........................................
376–382a–1 ................................
382b .........................................
382b–1 ......................................
382c–385 ...................................
390 ...........................................
390(a) .......................................
390(b) .......................................
390(d) .......................................
390(e) .......................................
390(f) .......................................
390(g) .......................................
390(h) ......................................
390(i) .......................................
390a .........................................
390a(a) .....................................
390a(b) .....................................
390b .........................................
390c .........................................
390c(b), (c) ...............................
390d .........................................
390e–390g .................................
391 ...........................................
391(b) .......................................
391(c) .......................................
391(e) .......................................
391a .........................................
391a(2)(A) ................................
391a(2)(B) ................................
391a(2)(C) ................................
391a(2)(D) ................................
391a(2)(E) ................................
391a(2)(F) ................................
391a(2)(G) ................................
391a(2)(H) ................................
391a(2)(I) .................................
391a(2)(J) .................................
391a(2)(K) ................................
391a(2)(L) ................................
391a(2)(M) ................................
391a(2)(N) ................................
391a(2)(O) ................................
391a(2)(P) ................................
391a(2)(Q) ................................
391a(2)(R) ................................
391a(2)(S) ................................
391a(3) .....................................
391a(4) .....................................
391a(4)(B) ................................
391a(5) .....................................
391a(6) .....................................
391a(7) .....................................
391a(8) .....................................
391a(8)(A) ................................
391a(8)(B) ................................
391a(8)(C) ................................

Title 46
New Sections
55112
Rep.
T. 19 § 1706a
Rep.
502
503
Rep.
Rep.
2110
Rep.
Rep.
60104
2101(16), (37)
2109, 3301(9), 3314
3303
3504
3505
2109
8502
Rep.
3306
2101(16), (33), 2303, 3301(7), 3302
3305, 3306, 3316
3503
3318
Rep.
2103
Rep.
3306
Rep.
2104, 2111, 2112
3317(b)
Rep.
3302, 3304
2101(21)(B)
2101(35)
2101(34)
2101(13)
2101(27)
2101(30)
2101(28)
2101(29)
3301(4), (5), (8), 3305
3307(2)
3317(a), 7114
3306, 8901, 8902
3303(a), 3309, 3311
3313
2106, 3318(a), 8906
Rep.
3301(1), (4), (9), 3304, 3305
3307(3)
2101(22), 3307(1)
3302
3301(10), 3702, 8502
2101(9)
2101(12)
2101(14)
2101(15)
2101(20)
3701(4)
2101(24)
2101(5)
2101(34)
3701(5)
3701(6)
2101(46)
2101(38)
2101(8)
2101(23)
3701(2)
3701(3)
3701(1)
2101(7)
2101(39), 2301, 3303, 3702(a)
2109
8703(c)
3702
3703
3704–3709
3309, 3313
3710, 3712
3711, 3712
3711

404–1 ........................................
404–1(1) ....................................
404–1(4) ....................................
404–1(6) ....................................
404–1(8) ....................................
404a .........................................
405 ...........................................
405(b) .......................................
405(b)(1)(A) ..............................
405(b)(2) ...................................
405(b)(3) ...................................
406 ...........................................
407 ...........................................
408 ...........................................
409 ...........................................
410 ...........................................
411, 412 ....................................
413 ...........................................
414 ...........................................
415 ...........................................
416 ...........................................
417 ...........................................
418, 419 ....................................
420 ...........................................
431–434 .....................................
435 ...........................................
436 ...........................................
437–440 .....................................
441(1) .......................................
441(2) .......................................
442 ...........................................
443 ...........................................
444 ...........................................
445 ...........................................
446–446c ...................................
446 note (Pub. L. 97–322, § 201)
446d .........................................
451 ...........................................
452 ...........................................
453 ...........................................
454–457 .....................................
458 ...........................................
459 ...........................................
460, 460a, 461 ............................
462 ...........................................
463, 463a, 464 ............................
465 ...........................................
466 ...........................................
466a .........................................
466b .........................................
466c .........................................
467–469 .....................................
470, 471 ....................................

TITLE 46—SHIPPING

Page 4

Disposition Table—Continued

Disposition Table—Continued

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

Title 46 or Title 46 Appendix
Former Sections

Title 46 or Title 46 Appendix
Former Sections

472 ...........................................
473 ...........................................
474–476 .....................................
477–479 .....................................
480 ...........................................
481 ...........................................
481(a) .......................................
481(c) .......................................
481(d) .......................................
482, 483 ....................................
484–488 .....................................
489 ...........................................
490 ...........................................
491 (words before semicolon) ..
491 (words after semicolon) ....
492 ...........................................
493–496 .....................................
497 ...........................................
498 ...........................................
511–522 .....................................
526 ...........................................
526a–526d .................................
526e .........................................
526f ..........................................
526g .........................................
526h .........................................
526i ..........................................
526j ..........................................
526k–526n .................................
526o .........................................
526p .........................................
526q–526t .................................
526u .........................................
527–527h ...................................
531 ...........................................
532 ...........................................
533, 534 ....................................
541–542a ...................................
543 ...........................................
544, 545 ....................................
546 ...........................................
547–549 .....................................
561, 562 ....................................
563 ...........................................
564 ...........................................
565 ...........................................
566 ...........................................
567, 568 ....................................
569 ...........................................
570 ...........................................
571 ...........................................
572, 573 ....................................
574 ...........................................
575 ...........................................
576 ...........................................
577 ...........................................
578 ...........................................
579 ...........................................
591 ...........................................
592 ...........................................
593 ...........................................
594 ...........................................
595 ...........................................
596 ...........................................
597 ...........................................
598 ...........................................
599 ...........................................
599(g) .......................................
600 ...........................................
601 ...........................................
602 ...........................................
603–608, 611 ..............................
621 ...........................................
622 ...........................................
623 ...........................................
624 ...........................................
625 ...........................................
626 ...........................................
627 ...........................................
628 ...........................................
641, 642 ....................................
643 ...........................................
643(a) .......................................
643(b) .......................................

Title 46
New Sections
Rep.
3306
Rep.
3306
2301
2106, 3306
2101(34)
2106
3318
3306
Rep.
3306
Rep.
30102
30103
3506
Rep.
2106, 3318, 8502
Rep.
Rep.
2101(43)
Rep.
4102(b)
Rep.
4102(a)
4103
4102(c)
4102(d)
Rep.
2106, 2107, 4106
2107, 3306, 4104
Rep.
4101
Rep.
10601
Rep. See 11501
10602
Rep.
2104
Rep.
10102
Rep.
Rep.
11110
10301, 10302
10305
10301
10321
10309
10308
10321
Rep.
10301, 10501, 10502
10508
10509
10307
11107
Rep.
10313(a)
10313(b)
10313(b)
10313(c)
10313(d)
10313(e)–(i), 10504
2101(12), 10313(e)–(i), 10504
10313(e), 10504(a), (d), 10505(d)
2101(12), 10314, 10315, 10505, 10506
10316
10317
11108, 11109
11111
Rep.
10701, 10702
10703
10711
10704, 10705
10706
10707
10709
10708, 10710
10310
8701, 8702, 10102(c), 10311, 10503
7302, 7303, 7318
7304

643(c) .......................................
643(e) .......................................
643(f) .......................................
643(h) ......................................
643(l) .......................................
643a .........................................
643b .........................................
644 ...........................................
645, 646, 651 ..............................
652 ...........................................
653 ...........................................
654 ...........................................
655 ...........................................
656 ...........................................
657 ...........................................
658 ...........................................
659 ...........................................
660 ...........................................
660–1 ........................................
660a .........................................
660b .........................................
661 ...........................................
662 ...........................................
663 ...........................................
664 ...........................................
665 ...........................................
666 ...........................................
667 ...........................................
668, 669 ....................................
670, 671 ....................................
672 ...........................................
672(a) .......................................
672(b) .......................................
672(b)(1) ...................................
672(b)(2) ...................................
672(b)(3) ...................................
672(b)(4) ...................................
672(c) .......................................
672(d) .......................................
672(e) .......................................
672(f) .......................................
672(g) .......................................
672(h) ......................................
672(i) .......................................
672(j) .......................................
672–1, 672–2 ..............................
672a .........................................
672b, 672b–1, 672c .....................
673 ...........................................
674–677 .....................................
678 ...........................................
679 ...........................................
680, 681 ....................................
682 ...........................................
683 ...........................................
684 ...........................................
685 ...........................................
686, 687 ....................................
688(a) .......................................
688(b) .......................................
689 ...........................................
690 ...........................................
691 ...........................................
692 ...........................................
701 ...........................................
702 ...........................................
703 ...........................................
704 ...........................................
705 ...........................................
706 ...........................................
707 ...........................................
708 ...........................................
709 ...........................................
710 ...........................................
710a .........................................
710b .........................................
710c .........................................
711 ...........................................
712 ...........................................
713 ...........................................
721 ...........................................
722, 723 ....................................
724 ...........................................
725 ...........................................

Title 46
New Sections
7302, 10306
10311
7319, 7502
7501
7316, 10103
8701
Rep.
10312(a), (b), (d)–(f)
Rep.
10312(c)
10901, 10902(a), 10907
10901, 10903(a), (b)
10901, 10904
10901, 10905
10905
10901, 10906, 10908
10903(c)
10903(d)
11101
3305, 3308
3308
10321
10902(b)
Rep.
10907
10321, 11106(b)–(d)
11102(a)
11102(b)
Rep.
11103
8701, 8702
2101(34)
7306
7307
7308
7309, 7310
7311
7301, 7315
8702(d)
8702(b), (c)
7312
7313, 7314
8103
7302
2106, 8702(e)
Rep.
8103
Rep.
8104
Rep.
11104(a)
11104(b)–(d)
Rep.
10318, 10507
10318, 10507
11105
11106(a)
Rep.
30104
30105
2103, 2104
8103
Sec. 2(f) of Pub. L. 98–89
Rep.
11501
11502
11503
T. 18 § 2196
11504
11505
10319
T. 18 § 2279
Rep.
11506
Rep.
(See former 239a)
(See former 239b)
Rep.
11507
10101, 10303, 10304
80101
80103
80102
80105

Page 5

TITLE 46—SHIPPING
Disposition Table—Continued

Disposition Table—Continued

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

Title 46 or Title 46 Appendix
Former Sections

Title 46 or Title 46 Appendix
Former Sections

726 ...........................................
727 ...........................................
728 ...........................................
729, 730 ....................................
731 ...........................................
732–735 .....................................
738 ...........................................
738a .........................................
738b .........................................
738c .........................................
738d .........................................
740 ...........................................
741 (11th–26th words) ...............
741 (less 11th–26th words) ........
742 (1st sentence) ....................
742 (2d sentence) .....................
742 (3d sentence) .....................
742 (last sentence) ...................
743 (1st sentence) ....................
743 (2d, 3d sentences) ..............
743 (4th–6th sentences) ............
743 (last sentence) ...................
743a .........................................
744 ...........................................
745 (words before 1st proviso)
745 (1st proviso) ......................
745 (2d proviso) .......................
745 (last proviso) .....................
746 ...........................................
747 ...........................................
748 ...........................................
749 ...........................................
750 ...........................................
751 ...........................................
752 ...........................................
761(a) .......................................
761(b) .......................................
762(a) .......................................
762(b) .......................................
763 ...........................................
763a .........................................
764 ...........................................
765 ...........................................
766 ...........................................
767 ...........................................
768 ...........................................
781 ...........................................
782 (1st sentence) ....................
782 (last sentence words before
last comma).
782 (last sentence words after
last comma).
783 (words before proviso) .......
783 (proviso) ............................
784 ...........................................
785 ...........................................
786 ...........................................
787 ...........................................
788 ...........................................
789 ...........................................
790 ...........................................
791–799 .....................................
801 ...........................................
802 ...........................................
803 ...........................................
804 ...........................................
804a .........................................
805–807 .....................................
808(4th par., prior to amendment by Pub. L. 100–710).
808(a) .......................................
808(b) .......................................
808(c)–(f) ..................................
808a .........................................
809–810a ...................................
811 (1st sentence words before
1st comma).
811 (1st sentence words after
1st comma).
811 (2d sentence words before
2d comma).
811 (2d sentence words after 2d
comma).
811 (3d sentence) .....................

Title 46
New Sections
80106
80107
2304
80107
2304, 80107
Rep.
80301
80302
Rep.
80303
Rep.
30101
30902
30908
30903
30906
30903
30906
30907
30911
30907
30909
Rep.
30914
30905
30904
Rep.
30911
30910
30915
30913
30912
30916
30917
30918
30302
30307
30303
30307
Rep.
30106
30306
30305
30304
30308
Rep.
31102
31104
31103
31107
31102
31105
31110
31111
31108
31109
31112
31106
31113
Rep.
Rep.
50501
50502
Rep.
Rep.
Rep.
31328
Rep.
57109
56101
56101
Rep.
50105
50106
50105
50107
50106

811 (4th sentence) ....................
811 (last sentence) ...................
812–817c ...................................
817d(a)
(1st–5th,
29th–last
words).
817d(a) (6th–28th words) ..........
817d(b) .....................................
817d(c) .....................................
817d(d) .....................................
817d(e) .....................................
817e(a)
(1st–14th,
37th–last
words).
817e(a) (15th–36th words) .........
817e(b) .....................................
817e(c) .....................................
817e(d) .....................................
817e(e) .....................................
818–832 .....................................
833, 833a ..................................
834 ...........................................
835 ...........................................
836, 837 ....................................
838 ...........................................
839 (1st par.) ............................
839 (last par.) ..........................
840–841c ...................................
842 ...........................................
843–848 .....................................
861 ...........................................
862–864 .....................................
864a .........................................
864b .........................................
865 ...........................................
865a .........................................
866 ...........................................
867 ...........................................
868, 869 ....................................
870–870d ...................................
871 ...........................................
872 ...........................................
873, 874 ....................................
875 ...........................................
876(a)(1) ...................................
876(a)(2) ...................................
876(a)(3) ...................................
876(b), (c) ................................
876(d) .......................................
876(e) .......................................
876(f), (g) .................................
876(h) ......................................
876(i) .......................................
876(j) .......................................
876(k) ......................................
876(l ) .......................................
877 ...........................................
877 note (Proc. No. 3215, Dec.
12, 1957).
878–880 .....................................
881 ...........................................
882 ...........................................
883 (words before 1st proviso)
883 (1st proviso, 2d proviso less
meaning of ‘‘rebuilt’’).
883 (2d proviso related to
meaning of ‘‘rebuilt’’).
883 (3d proviso) .......................
883 (4th proviso) ......................
883 (5th proviso) ......................
883 (6th proviso) ......................
883 (7th proviso) ......................
883 (8th proviso) ......................
883 (2d–6th sentences, last sentence less provisos).
883 (10th proviso) ....................
883 (11th proviso) ....................
883 (12th proviso) ....................
883 (last proviso) .....................
883 note (Pub. L. 104–324,
§ 1120(f)).
883–1 ........................................
883a (1st sentence) ..................
883a (2d, last sentences) ..........
883b .........................................
884 ...........................................

Title 46
New Sections
50109
50111
Rep.
44103
44101
44103
44104
44106
44105
44102
44101
44102
44104
44106
44105
Rep.
Rep.
60108
56102
56105
31306
56103
56104
Rep.
Rep.
Rep.
50101
Rep.
Rep.
57108
Rep.
53101 note
Rep.
50302
Rep.
Rep.
57106
50304
Rep.
50304
Rep.
42101
42102
42102
42103
42101
42104
42105
42106
42107
42108
42109
55101
55101
Rep.
3305, 3316, 12119
3304
55102
12132
12101
55116
55119
55117
55107
55106
Rep.
55105
55115
55102
55110
55108
12120
12118
12139
12151
Rep.
58108

TITLE 46—SHIPPING

Page 6

Disposition Table—Continued

Disposition Table—Continued

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

Title 46 or Title 46 Appendix
Former Sections

Title 46 or Title 46 Appendix
Former Sections

885 ...........................................
886 ...........................................
887–889 .....................................
891 ...........................................
891a .........................................
891b .........................................
891c–891y .................................
911(1), (2) .................................
911(3) .......................................
911(4) .......................................
911(5) .......................................
921 ...........................................
922(a), (b) ................................
922(b) .......................................
922(c), (d) ................................
922(e), (f) .................................
923 ...........................................
924 ...........................................
925 ...........................................
925(b) .......................................
926(a), (b) ................................
926(c) .......................................
926(d) .......................................
927 ...........................................
941(a) .......................................
941(b) (1st sentence) ................
941(b) (last sentence) ..............
941(c) .......................................
951 (1st par.) ............................
951 (2d par. less proviso) .........
951 (2d par. proviso) ................
952 (1st, 2d sentences) .............
952 (last sentence) ...................
953(a) .......................................
953(b) .......................................
954(a) .......................................
954(b) .......................................
961(a) .......................................
961(b) .......................................
961(c) .......................................
961(d), (e) ................................
961(f) .......................................
971 ...........................................
972 ...........................................
973 ...........................................
974 ...........................................
975 ...........................................
981–984 .....................................
1011 .........................................
1012 .........................................
1013, 1014 .................................
1101 .........................................
1111(a), (b) ...............................
1111(c) (related to seal) ...........
1111(c) (related to records) ......
1111(c) (related to rules and
regulations).
1111(d) (related to Commission).
1111(d) (related to Secretary)
1111(e) .....................................
1111(f) (1st, last sentences) ......
1111(f) (2d sentence related to
Commission).
1111(f) (2d sentence related to
Secretary).
1111 note (Pub. L. 89–56) ..........
1111 note (Reorg. Plan No. 6 of
1949).
1111 note (Reorg. Plan No. 21
of 1950, §§ 201, 203, 204).
1111 note (Reorg. Plan No. 7 of
1961, §§ 101, 102(a)–(c), 104,
105(d)).
1111 note (Reorg. Plan No. 7 of
1961, § 102(d)).
1111 note (Reorg. Plan No. 7 of
1961, § 105(a)–(c)).
1111 note (Reorg. Plan No. 7 of
1961, § 201).
1111a–1111c ..............................
1112 .........................................
1113 .........................................
1114 .........................................

Title 46
New Sections
T. 15 § 38
Rep.
Rep.
50101
Rep.
57106
Rep.
30101(1)
Rep.
30101(1)
31301(3)
31321(a)(1), (e)
31322(a)(1)
31301(6)(A)
Rep.
31322(c)
31324
31323(a), (b)
31343
31321(f), (h)
31321(b)
Rep.
31322(b)
31302(1), (2)
Rep.
31330(a), (c)
31323(c)
31304
31325(a), (b)(1), (c), (d)
31301(6)(B)
31326(b)(2)
31325(e)
31308
31301(5)
31326(a), (b)(1)
31325(b)(2)
31303
Rep.
31327
31326(a)
31328
31329
31342
31341
31341(a)
31305
31307
Rep.
Rep.
31321(a)(2)
Rep.
50101
Rep.
301
303
305
307
Rep.
Rep.
Rep.
Rep.
T. 49 § 109
301
301
T. 49 § 109
301

302
304
T. 49 § 109
Rep.
50303
Rep.
Rep.

1115 .........................................
1116, 1116a ...............................
1117 (related to Commission) ..
1117 (related to Secretary) ......
1118 (related to Commission) ..
1118 (related to Secretary) ......
1118 note (Pub. L. 106–398,
[§ 3506]).
1119 .........................................
1119a, 1119b ..............................
1120 .........................................
1121(a)–(c) ...............................
1121(d) .....................................
1121(e) .....................................
1121(f) ......................................
1121(g) .....................................
1121(h), (i) ...............................
1121(j) (words before 1st semicolon).
1121(j) (words between 1st and
2d semicolons).
1121(j) (words after 2d semicolon).
1121–1 ......................................
1121–2 ......................................
1122(a) .....................................
1122(b)(1) .................................
1122(b)(2) .................................
1122(c) .....................................
1122(d) .....................................
1122(e) .....................................
1122(f) ......................................
1122(g) .....................................
1122a .......................................
1122b .......................................
1123 .........................................
1124 .........................................
1125 .........................................
1125 note (Pub. L. 86–518, § 9) ...
1125a .......................................
1126 .........................................
1126–1(a) (1st sentence) ...........
1126–1(a) (last sentence), (b) ....
1126a, 1126a–1 ...........................
1126b, 1126b–1 ...........................
1126c, 1126d ..............................
1127–1128h ................................
1131 .........................................
1132 (prior provision) ..............
1132(a) (prior provision) ..........
1132 (added by Pub. L. 104–239)
1141–1144 ..................................
1145 .........................................
1151–1155 ..................................
1155a .......................................
1156, 1157 .................................
1158(a) .....................................
1158(b) .....................................
1159 .........................................
1160(a) .....................................
1160(b) (1st sentence) ..............
1160(b) (2d sentence) ................
1160(b) (3d sentence) ................
1160(b) (4th–7th sentences) ......
1160(b) (last sentence) .............
1160(c) .....................................
1160(d) .....................................
1160(e) .....................................
1160(f) ......................................
1160(g) .....................................
1160(h) .....................................
1160(i) ......................................
1160(j) ......................................
1161(a) .....................................
1161(b) (1st sentence words before 6th comma).
1161(b) (1st sentence words between 6th and 10th commas).
1161(b) (1st sentence between
10th and 16th commas).
1161(b) (1st sentence words
after 16th comma).
1161(b) (last sentence) .............
1161(c) .....................................

Title 46
New Sections
58107
Rep.
Rep.
T. 49 § 109
306
50111
50111
T. 49 § 109
Rep.
50102
50103
50105
50106
50109
50106
50109
50105
50110
50109
55301
50112
50104
50110
50105
50105
50110, T. 49 § 109
Rep.
50108
50111
50113
55501
50109
50306
57105
57105, 57506
57107
Rep.
51101
51104
Rep.
Rep.
Rep.
Rep.
53101 note
8103
7102
52101
Rep.
Rep.
53101 note
Rep.
53101 note
57102
57103
53101 note
57301
57302
57304
57305
57306
57302
57303
57305
57307
50111
57308
Rep.
57104
57101
53301
53302
53303
53302
53305
53302
53306

Page 7

TITLE 46—SHIPPING
Disposition Table—Continued

Disposition Table—Continued

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

Title 46 or Title 46 Appendix
Former Sections

Title 46 or Title 46 Appendix
Former Sections

1161(d) .....................................
1161(e) .....................................
1161(f) ......................................
1161(g), (h) ...............................
1161(i) ......................................
1161(j) ......................................
1161(k) .....................................
1161(l ) .....................................
1161(m)–(o) ..............................
1162, 1171–1176 ..........................
1177(a) (1st sentence) ..............
1177(a) (2d sentence related to
purpose).
1177(a) (2d sentence related to
deposits).
1177(a) (last sentence) .............
1177(b)(1), (2) ...........................
1177(b)(3) .................................
1177(c) .....................................
1177(d) .....................................
1177(e) .....................................
1177(f) ......................................
1177(g) .....................................
1177(h) (less (2) (last sentence))
1177(h)(2) (last sentence) .........
1177(i) ......................................
1177(j) ......................................
1177(k)(1)–(3) ...........................
1177(k)(4) .................................
1177(k)(5)–(9) ...........................
1177(l ) (1st sentence) ...............
1177(l ) (2d sentence) ................
1177(l ) (last sentence) .............
1177(m) ....................................
1177–1 ......................................
1177a .......................................
1178–1181 ..................................
1182 .........................................
1183–1185a ................................
1187–1187e ................................
1191 .........................................
1192 .........................................
1193(a) .....................................
1193(b) .....................................
1193(c) (related to construction, reconstruction, or reconditioning).
1193(c) (related to chartering)
1194 .........................................
1195 (1st, 2d sentences) ............
1195 (last sentence) .................
1196(a) .....................................
1196(b) (1st sentence related to
announcement).
1196(b) (1st sentence related to
authority).
1196(b) (last sentence) .............
1197 .........................................
1198 .........................................
1199 .........................................
1200 .........................................
1201 .........................................
1202(a) .....................................
1202(b), (c) ...............................
1202(d) .....................................
1203 .........................................
1204 .........................................
1205 .........................................
1206 .........................................
1211, 1212 .................................
1213(a) (less 3d sentence as related to 1121(a)).
1213(a) (3d sentence related to
1121(a)).
1213(b) .....................................
1214 .........................................
1221 .........................................
1222 .........................................
1223(a) .....................................
1223(b) .....................................
1223(c) .....................................
1223(d) .....................................
1223(e) .....................................
1223(f) ......................................

Title 46
New Sections
53307
53308
53309
53310
53311
53312
Rep.
53304
53301
53101 note
53503
53503
53504
53504
53505
53501
53506
53507
53508
53509
53510
53511
53512
53513
53514
53501
Rep.
53501
53515
53502
53516
53517
53501
Rep.
53101 note
Rep.
53101 note
Rep.
57501
57502
57503
57502
57503

57512
57504
57505
57506
57512
57512
57515
57513
57515
57516
57517
57518
57511
57519
57520
57521
57514
57531
57532
Rep.
53101 note
53101 note
50103
T. 49 § 109
Rep.
Rep.
Rep.
58101
58102
Rep.
58103
Rep.
58104

1224, 1225 .................................
1226 .........................................
1227 .........................................
1228 (1st, 2d pars.) ...................
1228 (last par.) .........................
1241(a) .....................................
1241(b) .....................................
1241(c) .....................................
1241–1 ......................................
1241a, 1241b ..............................
1241b note (limitation on
funds for fiscal year 1957).
1241c ........................................
1241d .......................................
1241e ........................................
1241f(a)–(d) ..............................
1241f(e) ....................................
1241g .......................................
1241h .......................................
1241h note (Pub. L. 100–202,
§ 101(a) [title V, § 501]).
1241i ........................................
1241j ........................................
1241k–1241n ..............................
1241o ........................................
1241p .......................................
1241q .......................................
1241r ........................................
1241s ........................................
1241t(a), (c) .............................
1241t(b) ....................................
1241u .......................................
1241v .......................................
1242(a) (1st, 2d sentences) ........
1242(a) (3d sentence) ................
1242(a) (4th sentence) ..............
1242(a) (last sentence) .............
1242(b) .....................................
1242(c) (1st sentence) ...............
1242(c) (2d sentence) ................
1242(c) (last sentence) .............
1242(d) (1st par. words before
2d comma).
1242(d) (1st par. words after 2d
comma).
1242(d) (last par.) ....................
1242(e) .....................................
1242–1 ......................................
1242a(a) ...................................
1242a(b) ...................................
1242a(c) ...................................
1242a(d) ...................................
1242a(e) ...................................
1243 .........................................
1244(a) .....................................
1244(b) .....................................
1244(c) .....................................
1244(d)–(f) ................................
1244(g) .....................................
1245 (1st sentence) ...................
1245 (last sentence) .................
1246 .........................................
1247 .........................................
1248, 1249 .................................
1251–1262 ..................................
1271 .........................................
1272 .........................................
1273(a) .....................................
1273(b) .....................................
1273(c) .....................................
1273(d) .....................................
1273(e) (1st sentence) ...............
1273(e) (last sentence) .............
1273(f) ......................................
1273(g) .....................................
1273(h) .....................................
1273(i), (j) ................................
1273a .......................................
1274(a) .....................................
1274(b)(1) .................................
1274(b)(2) .................................
1274(b)(3)–(7) ............................
1274(b) (last 2 sentences) .........
1274(c)(1) (1st sentence) ...........

Title 46
New Sections
Rep.
58105
58106
58109
505
55302
55305
55303
55304
50301
50301
50301
55311
55313
55314
55312
55315
55316
55316
Rep.
55317
Rep.
55314
55318
55333
55332
55334
55335
55336
Rep.
55331
56301
56303
56307
56303
56303
56302
56304
56303
56303
56304
56305
56306
Rep.
56501
56502
56503
56504
56502
Rep.
109
Rep.
50501
Rep.
114
Rep.
101 note
Rep.
50305
53101 note
Rep.
53701
53717
53702
53711
53709
53705
53705
53721, 53722
53704
53732
53704
53706
53707
53706
53707
53709
53710
53709
53711

TITLE 46—SHIPPING

Page 8

Disposition Table—Continued

Disposition Table—Continued

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

Title 46 or Title 46 Appendix
Former Sections

Title 46 or Title 46 Appendix
Former Sections

Title 46
New Sections

1295c(c)(3)(A) ...........................
1295c(c)(3)(B) ...........................
1295c(d)(1) ...............................
1295c(d)(2) ...............................
1295c(e) ....................................
1295c(f) ....................................
1295c(g)(1)–(6) ..........................
1295c(g)(7) ...............................
1295c(g)(8) ...............................
1295c(h) ...................................
1295c note (Pub. L. 101–115, § 4)
1295c–1 .....................................
1295d(a), (b) .............................
1295d(c) ...................................
1295e ........................................
1295f(a), (b) ..............................
1295f(c) ....................................
1295f(d)(1) ................................
1295f(d)(2), (3) ..........................
1295g(a) ...................................
1295g(b)–(d) .............................
1295g(e)(1) ...............................
1295g(e)(2)–(5) ..........................
1300–1315 ..................................
1331–1341 ..................................
1351–1364 ..................................
1381–1388 ..................................
1401–1413 ..................................
1451 .........................................
1452(1)(A), (B) ..........................
1452(1)(C) .................................
1452(2) .....................................
1452(3) .....................................
1452(5) .....................................
1452(7) .....................................
1452(8) .....................................
1452(9) .....................................
1452(10) ....................................
1452(11) ....................................
1452(12) ....................................
1452(13) ....................................
1452(14) ....................................
1453 .........................................
1454, 1455 .................................
1456 .........................................
1457 .........................................
1458 .........................................
1459 .........................................
1460 .........................................
1461(a) .....................................
1461(b) .....................................
1461(c) .....................................
1461(d) .....................................
1461(e) .....................................
1461(f) ......................................
1462 .........................................
1463 .........................................
1464 .........................................
1464(g) .....................................
1465 .........................................
1466 .........................................
1467 .........................................
1468 .........................................
1469 .........................................
1470 .........................................
1471 .........................................
1472 .........................................
1473 .........................................
1474 .........................................
1475 .........................................
1476 .........................................
1477 .........................................
1478 .........................................
1479 .........................................
1479a .......................................
1480 .........................................
1481 .........................................
1482 .........................................
1483 .........................................
1484(a) .....................................
1484(b) .....................................
1484(c) .....................................
1484(d) .....................................
1485 .........................................

51507
51508
51505
51501
51502
51506
51509
51510
51509
51511
51504
T. 49 § 109
51703
51704
51701
51702
2101(17), 3301(2), 3306, 3307(1)
51702
3318(g)
Rep.
51103
2101(17)
Rep.
30701 note
Rep.
Rep.
Rep.
Rep.
Rep.
2101(25)
2101(42)
2101(45)
2101(41)
2101(21)(D)
2101(26)
2101(1)
2101(34)
2102(2)
2102(1)
2102(4)
2102(5)
2102(3)
4105, 4301
4302
4302(a)(3)
4303
4305
4306
4304, 4306
4307(a)
4311(f)
4307(b)
2302(a), (b)
8903
8903, 8905(a)
4308
4309
4310
4302
2303
12301
12302
12303
12304
12305
12306
12307
12308
13101
13102
13103
13104
13105
13106
13107
13108
13109
13110
2302(b), 4311(a), 12309(a)
4311(b)
2106, 2302(a), (c), 4311(c), 12309(b)
2107
4311(d), 12309(c)
2305, 4311(e)

1274(c)(1) (last sentence) .........
1274(c)(2) .................................
1274(d)(1), (2) ...........................
1274(d)(3) .................................
1274(d)(4) .................................
1274(d)(5) .................................
1274(e) .....................................
1274(f)(1) ..................................
1274(f)(2), (3) ............................
1274(f)(4) ..................................
1274(g) .....................................
1274(h) .....................................
1274(i) ......................................
1274(j) ......................................
1274(k) .....................................
1274(l ) .....................................
1274(m) ....................................
1274(n) .....................................
1274a .......................................
1275(a) .....................................
1275(b) .....................................
1275(c) .....................................
1275(d) .....................................
1275(e) .....................................
1275(f) ......................................
1276–1279 ..................................
1279a .......................................
1279b (prior provision) ............
1279b (added by Pub. L.
107–107).
1279c ........................................
1279d .......................................
1279e ........................................
1279f ........................................
1279g .......................................
1280 .........................................
1280a .......................................
1280b .......................................
1281(a)–(c) ...............................
1281(d), (e) ...............................
1282 .........................................
1283(a) (1st, 2d sentences) ........
1283(a) (last sentence) .............
1283(b) (1st sentence) ..............
1283(b) (last sentence) .............
1283(c)–(f) ................................
1284 .........................................
1285 .........................................
1286 .........................................
1287 .........................................
1288, 1288a ...............................
1289(a)(1) .................................
1289(a)(2) .................................
1289(b)–(f) ................................
1290 .........................................
1291 .........................................
1292 .........................................
1293 .........................................
1294 .........................................
1295 (1st sentence) ...................
1295 (last sentence cl. (1)) .......
1295 (last sentence cl. (2)) .......
1295a .......................................
1295b(a) ...................................
1295b(b)(1)–(3)(C) .....................
1295b(b)(3)(D) ..........................
1295b(b)(3)(E) ...........................
1295b(b)(3)(F) ...........................
1295b(b)(3)(G) ..........................
1295b(b)(4) ...............................
1295b(b)(5)–(7) ..........................
1295b(b)(8) ...............................
1295b(c) ...................................
1295b(d) ...................................
1295b(e)(1)–(4) ..........................
1295b(e)(5) ...............................
1295b(f) ....................................
1295b(g) ...................................
1295b(h) ...................................
1295b(i) ....................................
1295b(j) ....................................
1295c(a) ...................................
1295c(b) ...................................
1295c(c)(1), (2) ..........................

Title 46
New Sections
53709
53711
53708
53732
53707
Rep.
53714
53713
53708
53713
53717
53710
53709
53732
53712
53703
53712
53703
53734
53721
53722
53724
53723
53725
53722
Rep.
53715
Rep.
53716
53731
53732
53733
53735
53702
53717
53733
53718
53901
Rep.
53902
53903
53910
53903
53901
53903
53903
53905
53904
53907
53909
53910
53906
53910
Rep.
50111
53911
53908
53912
51101
51103
51104
51102
51301
51302
51303
51305
51311
Rep.
Rep.
51304
51309
51311
51308
51306
51310
51307
51309
51312
51313
51314
51501
51503
51504

Page 9

TITLE 46—SHIPPING
Disposition Table—Continued

Disposition Table—Continued

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

(Showing Disposition of Former Sections of Title 46 or Title 46
Appendix)

Title 46 or Title 46 Appendix
Former Sections

Title 46 or Title 46 Appendix
Former Sections

1486 .........................................
1487 .........................................
1488 .........................................
1489 .........................................
1501 .........................................
1502(a) (related to application
of Convention).
1502(a) (related to approval
and examination).
1502(b) .....................................
1503(a)–(c)(1) ............................
1503(c)(2) .................................
1503(c)(3) .................................
1503(d) .....................................
1503(e) .....................................
1504 .........................................
1505 .........................................
1506 .........................................
1507 .........................................
1508 .........................................
1601–1603 ..................................
1604–1608 ..................................
1609 .........................................
1610 .........................................
1701 .........................................
1702 .........................................
1703 .........................................
1704(a) .....................................
1704(b)–(d) ...............................
1704(e) (less last sentence) ......
1704(e) (last sentence) .............
1704(f) ......................................
1704(g) .....................................
1705(a)–(f) ................................
1705(g)–(i) ................................
1705(j) ......................................
1705(k) .....................................
1706 .........................................
1707(a), (b) ...............................
1707(c) .....................................
1707(d) .....................................
1707(e) .....................................
1707(f), (g) ...............................
1707a .......................................
1708(a) .....................................
1708(b) .....................................
1708(c) (1st sentence) ...............
1708(c) (last sentence), (d) .......
1708(e) .....................................
1708(f) ......................................
1709(a) .....................................
1709(b)(1)–(12) ..........................
1709(b)(13), (words after cl.
(13)).
1709(c) .....................................
1709(d)(1) .................................
1709(d)(2) .................................
1709(d)(3) (related to (b)(10)) ....
1709(d)(3) (related to (b)(13)) ....
1709(d)(4) .................................
1709(d)(5) .................................
1709(e) .....................................
1710(a), (b) ...............................
1710(c) (1st–3d sentences) ........
1710(c) (last sentence) .............
1710(d)–(f) ................................
1710(g) (related to time limit)
1710(g) (less time limit) ..........
1710(h)(1) .................................
1710(h)(2) .................................
1710a(a) ...................................
1710a(b), (c) .............................
1710a(d) ...................................
1710a(e)(1), (2) ..........................
1710a(e)(3) ...............................
1710a(f) ....................................
1710a(g) ...................................
1710a(h) (related to 876(a)(2)) ..
1710a(h) (related to 1712(b)(6))
1710a(i) ....................................
1711 .........................................
1712(a) .....................................
1712(b) .....................................
1712(c)–(f) ................................

Title 46
New Sections
6101, 6102
Rep.
4302
4311(g)
80501
80502
80504
Rep.
80503
80506
80503
80506
80503
80505
80509
80507
80508
Rep.
T. 49 § 109
Rep.
T. 49 § 109 note
Elim.
40101
40102
40301
40302
40303
40305
40301
40301
40303
40304
41307
40306
41307
40307
40501
40502
40501
40503
40501
Rep.
40701
40702
40703
40704
40705
40706
41102
41104
41103
41105
41102
41106
41106
41103
41106
41103
41101
41301
41302
41307
41302
41301
41305
41307
41306
42301
42302
42303
42304
42306
42305
306
42101
41108
42307
41303
41107
41108
41109

1713(a), (b) ...............................
1713(c) .....................................
1713(d) .....................................
1713(e) .....................................
1714 .........................................
1715 .........................................
1716 .........................................
1717 .........................................
1718(a) .....................................
1718(b) .....................................
1718(c) .....................................
1718(d) .....................................
1718(e) .....................................
1719(a)–(c) ...............................
1719(d) .....................................
1719(e) .....................................
1720 .........................................
1721 .........................................
1801 .........................................
1802 .........................................
1803 .........................................
1804 .........................................
1805 .........................................
1806 .........................................
1807 .........................................
1808 .........................................
1809 .........................................
1901 .........................................
1902 .........................................
1903(a) .....................................
1903(b), (c) ...............................
1903(d) .....................................
1903(e) .....................................
1903(f) ......................................
1903(g) .....................................
1903(h) .....................................
1903(i) ......................................
1903(j) ......................................
1904 .........................................
2001 .........................................
2002 .........................................
2003 .........................................
2004(a) .....................................
2004(b) .....................................
2004(c) .....................................
2004(d) .....................................
2005 .........................................
2006 .........................................
2007 .........................................
12101 note (Pub. L. 104–324,
§ 1117).
12102 note (Pub. L. 105–277,
§ 203(b)–(e)).
12106 note (Pub. L. 105–383,
§§ 502–504).
12119 note (Pub. L. 107–295,
§ 403).

Title 46
New Sections
41304
41308
41309
41308, 41309
40104
40103
305
Rep.
40901
40902
40903
40901
40904
Rep.
40101 note
Rep.
Rep.
Rep.
70302
70306
70303
70304
70305
Rep.
70301
Rep.
70306
Rep.
70501
70503
70502
70505
70503
70504
70506
70503
70502
70506
70507
51901
51901
51902
51903
51904
51907
51901
51905
51906
51908
55113
12113
12121
12138

ENACTING CLAUSES
Pub. L. 100–710, title I, § 102(a), Nov. 23, 1988, 102 Stat.
4738, provided that: ‘‘Certain general and permanent
laws of the United States, related to definitions and
maritime commercial instruments and liens, are revised, consolidated, and enacted by paragraph (3) of
this subsection [probably means subsection (c) of this
section] as subtitle III of title 46, United States Code,
‘Shipping’.’’
Pub. L. 98–89, § 1, Aug. 26, 1983, 97 Stat. 500, provided
in part that: ‘‘Certain general and permanent laws of
the United States, related to vessels and seamen, are
revised, consolidated, and enacted as title 46, United
States Code, ‘Shipping’ ’’.
LEGISLATIVE PURPOSE AND CONSTRUCTION
Pub. L. 109–304, § 2, Oct. 6, 2006, 120 Stat. 1485, provided
that:
‘‘(a) PURPOSE.—The purpose of this Act [see Tables
for classification] is to complete the codification of
title 46, United States Code, ‘‘Shipping’’, as positive
law, by reorganizing and restating the laws currently
in the appendix to title 46.

TITLE 46—SHIPPING
‘‘(b) CONFORMITY WITH ORIGINAL INTENT.—In the codification of laws by this Act, the intent is to conform to
the understood policy, intent, and purpose of the Congress in the original enactments, with such amendments and corrections as will remove ambiguities, contradictions, and other imperfections, in accordance
with section 205(c)(1) of House Resolution No. 988, 93d
Congress, as enacted into law by Public Law 93–554 (2
U.S.C. 285b(1)).’’
Pub. L. 109–304, § 18, Oct. 6, 2006, 120 Stat. 1709, provided that:
‘‘(a) CUTOFF DATE.—This Act [see Tables for classification] replaces certain provisions enacted on or before April 30, 2005. If a law enacted after that date
amends or repeals a provision replaced by this Act,
that law is deemed to amend or repeal, as the case may
be, the corresponding provision enacted by this Act. If
a law enacted after that date is otherwise inconsistent
with this Act, it supersedes this Act to the extent of
the inconsistency.
‘‘(b) ORIGINAL DATE OF ENACTMENT UNCHANGED.—For
purposes of determining whether one provision supersedes another based on enactment later in time, the
date of enactment of a provision enacted by this Act is
deemed to be the date of enactment of the provision it
replaced.
‘‘(c) REFERENCES TO PROVISIONS REPLACED.—A reference to a provision replaced by this Act is deemed to
refer to the corresponding provision enacted by this
Act.
‘‘(d) LAWS GOVERNING APPLICABILITY OF PRIOR AMENDMENTS.—This Act does not affect any law governing the
applicability of an amendment to a provision replaced
by this Act, notwithstanding the repeal by this Act of
the provision that was amended. To the extent that any
such law governed the applicability of a provision replaced by this Act, that law governs the applicability
of the corresponding provision enacted by this Act.
‘‘(e) REGULATIONS, ORDERS, AND OTHER ADMINISTRATIVE ACTIONS.—A regulation, order, or other administrative action in effect under a provision replaced by
this Act continues in effect under the corresponding
provision enacted by this Act.
‘‘(f) ACTIONS TAKEN AND OFFENSES COMMITTED.—An
action taken or an offense committed under a provision
replaced by this Act is deemed to have been taken or
committed under the corresponding provision enacted
by this Act.’’
Pub. L. 100–710, title I, § 105, Nov. 23, 1988, 102 Stat.
4751, provided that:
‘‘(a) A reference to a law replaced by section 102 of
this Act [see Tables for classification], including a reference in a regulation, order, or other law, is deemed to
refer to the corresponding provision of this Act.
‘‘(b) An order, rule, or regulation in effect under a
law replaced by section 102 of this Act continues in effect under the corresponding provision of this Act until
repealed, amended, or superseded.
‘‘(c) An action taken or an offense committed under
a law replaced by section 102 of this Act is deemed to
have been taken or committed under the corresponding
provision of this Act.
‘‘(d) An inference of legislative construction is not to
be drawn by reason of the caption or catch line of a
provision enacted by section 102 of this Act.
‘‘(e) If a provision of this Act is held invalid, all valid
provisions that are severable from the invalid provision
remain in effect. If a provision of this Act is held invalid in any of its applications, the provision remains
valid for all valid applications that are severable from
any of the invalid applications.’’
Pub. L. 99–509, title V, subtitle B, § 5103(a)–(f), Oct. 21,
1986, 100 Stat. 1927, provided that:
‘‘(a) Laws effective after January 1, 1986, that are inconsistent with this subtitle [see Tables for classification] supersede this subtitle to the extent of the inconsistency.
‘‘(b) A reference to a law replaced by this subtitle, including a reference in a regulation, order, or other law,
is deemed to refer to the corresponding provision of
this subtitle.

Page 10

‘‘(c) An order, rule, or regulation in effect under a law
replaced by this subtitle continues in effect under the
corresponding provision of this subtitle until repealed,
amended, or superseded.
‘‘(d) An action taken or an offense committed under
a law replaced by this subtitle is deemed to have been
taken or committed under the corresponding provision
of this subtitle.
‘‘(e) An inference of legislative construction is not to
be drawn by reason of the caption or catch line of a
provision enacted by this subtitle.
‘‘(f) If a provision enacted by this subtitle is held invalid, all valid provisions that are severable from the
invalid provision remain in effect. If a provision of this
subtitle is held invalid in one or more of its applications, the provision remains in effect in all valid applications that are severable from the invalid application
or applications.’’
Pub. L. 98–89, § 2(a)–(f), Aug. 26, 1983, 97 Stat. 598, provided that:
‘‘(a) Laws effective after December 31, 1982, that are
inconsistent with this Act [see Tables for classification] supersede this Act to the extent of the inconsistency.
‘‘(b) A reference to a law replaced by this Act, including a reference in a regulation, order, or other law, is
deemed to refer to the corresponding provision of this
Act.
‘‘(c) An order, rule, or regulation in effect under a law
replaced by this Act continues in effect under the corresponding provision of this Act until repealed, amended, or superseded.
‘‘(d) An action taken or an offense committed under
a law replaced by this Act is deemed to have been
taken or committed under the corresponding provision
of this Act.
‘‘(e) An inference of legislative construction is not to
be drawn by reason of the caption or catch line of a
provision enacted by this Act.
‘‘(f) If a provision enacted by this Act is held invalid,
all valid provisions that are severable from the invalid
provision remain in effect. If a provision of this Act is
held invalid in one or more of its applications, the provision remains in effect in all valid applications that
are severable from the invalid application or applications.’’
CODIFICATION OF SHIPPING AND MARITIME LAWS BY
FEDERAL MARITIME COMMISSION AND SECRETARY OF
TRANSPORTATION
Pub. L. 98–89, § 2(j), Aug. 26, 1983, 97 Stat. 599, provided
that: ‘‘Within 2 years after the date of enactment of
this Act [Aug. 26, 1983], the Federal Maritime Commission and the Secretary of Transportation each shall
submit to Congress a proposed codification of the laws
within their respective jurisdictions related to shipping
and maritime matters.’’
REPEALS AND SAVINGS PROVISIONS
Pub. L. 109–304, § 19, Oct. 6, 2006, 120 Stat. 1710, as
amended by Pub. L. 110–181, div. C, title XXXV,
§ 3529(b)(1)(C), Jan. 28, 2008, 122 Stat. 603, repealed specified laws relating to shipping, except with respect to
rights and duties that matured, penalties that were incurred, or proceedings that were begun before Oct. 6,
2006.
Pub. L. 100–710, title I, § 106(a), Nov. 23, 1988, 102 Stat.
4752, provided that: ‘‘The repeal of a law by this title
may not be construed as a legislative implication that
the provision was or was not in effect before its repeal.’’
Pub. L. 100–710, title I, § 106(b), Nov. 23, 1988, 102 Stat.
4752, repealed specified laws relating to shipping, except for rights and duties that matured, penalties that
were incurred, and proceedings that were begun before
the effective date of this title, which is Jan. 1, 1989,
with certain exceptions and qualifications, see section
107 of Pub. L. 100–710, set out as an Effective Date note
under section 31301 of this title.

Page 11

TITLE 46—SHIPPING

Pub. L. 99–509, title V, subtitle B, § 5104(a), Oct. 21,
1986, 100 Stat. 1928, provided that: ‘‘The repeal of a law
by this subtitle may not be construed as a legislative
implication that the provision was or was not in effect
before its repeal.’’
Pub. L. 99–509, title V, subtitle B, § 5104(b), Oct. 21,
1986, 100 Stat. 1928, repealed specified laws relating to
shipping, except for rights and duties that matured,
penalties that were incurred, and proceedings that were
begun before Oct. 21, 1986.
Pub. L. 98–89, § 4(a), Aug. 26, 1983, 97 Stat. 599, provided that: ‘‘The repeal of a law by this Act may not be
construed as a legislative implication that the provision was or was not in effect before its repeal.’’
Pub. L. 98–89, § 4(b), Aug. 26, 1983, 97 Stat. 599, repealed
specified laws relating to shipping, except for rights
and duties that matured, penalties that were incurred,
and proceedings that were begun before Aug. 26, 1983,
and except as provided by section 2 of Pub. L. 98–89, set
out as notes above and notes under sections 3101, 3302,
3715, and 6301 of this title.

Subtitle I—General
Chapter

1.
3.
5.

Sec.

Definitions ............................................
Federal Maritime Commission ........
Other General Provisions .................

101
301
501

CHAPTER 1—DEFINITIONS
Sec.

101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
114.
115.
116.

Agency.
Barge.
Boundary Line.
Citizen of the United States.
Consular officer.
Documented vessel.
Exclusive economic zone.
Fisheries.
Foreign commerce or trade.
Foreign vessel.
Numbered vessel.
State.
Undocumented.
United States.
Vessel.
Vessel of the United States.

§ 101. Agency
In this title, the term ‘‘agency’’ means a department, agency, or instrumentality of the
United States Government.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1486.)
HISTORICAL AND REVISION NOTES
Revised
Section
101 .............

Source (U.S. Code)

Source (Statutes at Large)

(no source).

A definition of ‘‘agency’’ is added to avoid having to
repeat the substance of the definition at various places
in the revised title.
SHORT TITLE OF 2010 AMENDMENT
Pub. L. 111–281, title VI, § 601, Oct. 15, 2010, 124 Stat.
2959, provided that: ‘‘This title [see Tables for classification] may be cited as the ‘Maritime Safety Act of
2010’.’’
Pub. L. 111–207, § 1(a), July 27, 2010, 124 Stat. 2243, provided that: ‘‘This Act [enacting sections 3507 and 3508 of
this title, amending section 676 of Title 14, Coast
Guard, and section 355 of Title 37, Pay and Allowances
of the Uniformed Services, enacting provisions set out
as notes under section 3507 of this title and section 1828
of Title 16, Conservation, amending provisions set out
as a note under section 2720 of Title 33, Navigation and

§ 101

Navigable Waters, and repealing provisions set out as
notes under section 70101 of this title and section 637 of
Title 14] may be cited as the ‘Cruise Vessel Security
and Safety Act of 2010’.’’
SHORT TITLE OF 2009 AMENDMENT
Pub. L. 111–83, title V, § 561(a), Oct. 28, 2009, 123 Stat.
2182, provided that: ‘‘This section [amending section
70103 of this title and sections 114 and 40119 of Title 49,
Transportation] may be cited as the ‘American Communities’ Right to Public Information Act’.’’
SHORT TITLE OF 2003 AMENDMENT
Pub. L. 108–136, div. C, title XXXV, § 3501, Nov. 24,
2003, 117 Stat. 1789, provided that: ‘‘This title [see
Tables for classification] may be cited as the ‘Maritime
Security Act of 2003’.’’
SHORT TITLE OF 2002 AMENDMENT
Pub. L. 107–295, § 1(a), Nov. 25, 2002, 116 Stat. 2064, provided that: ‘‘This Act [see Tables for classification]
may be cited as the ‘Maritime Transportation Security
Act of 2002’.’’
Pub. L. 107–295, title II, § 201, Nov. 25, 2002, 116 Stat.
2093, provided that: ‘‘This title [see Tables for classification] may be cited as the ‘Maritime Policy Improvement Act of 2002’.’’
SHORT TITLE OF 1999 AMENDMENT
Pub. L. 106–65, div. C, title XXXVI, § 3601, Oct. 5, 1999,
113 Stat. 975, provided that: ‘‘This title [see Tables for
classification] may be cited as the ‘Maritime Administration Authorization Act for Fiscal Year 2000’.’’
SHORT TITLE OF 1998 AMENDMENT
Pub. L. 105–277, div. C, title II, § 201, Oct. 21, 1998, 112
Stat. 2681–616, provided that: ‘‘This title [see Tables for
classification] may be cited as the ‘American Fisheries
Act’.’’
SHORT TITLE OF 1996 AMENDMENT
Pub. L. 104–324, title VI, § 601, Oct. 19, 1996, 110 Stat.
3927, provided that: ‘‘This title [see Tables for classification] may be cited as the ‘Coast Guard Regulatory
Reform Act of 1996’.’’
Pub. L. 104–297, title III, § 301, Oct. 11, 1996, 110 Stat.
3615, provided that: ‘‘This title [see Tables for classification] may be cited as the ‘Fisheries Financing
Act’.’’
Pub. L. 104–239, § 1, Oct. 8, 1996, 110 Stat. 3118, provided
that: ‘‘This Act [see Tables for classification] may be
cited as the ‘Maritime Security Act of 1996’.’’
SHORT TITLE OF 1993 AMENDMENT
Pub. L. 103–206, title V, § 501, Dec. 20, 1993, 107 Stat.
2439, provided that: ‘‘This title [see Tables for classification] may be cited as the ‘Passenger Vessel Safety
Act of 1993’.’’
SHORT TITLE OF 1992 AMENDMENT
Pub. L. 102–587, title V, § 5301, Nov. 4, 1992, 106 Stat.
5081, provided that: ‘‘This subtitle [subtitle C
(§§ 5301–5305) of title V of Pub. L. 102–587, see Tables for
classification] may be cited as the ‘Abandoned Barge
Act of 1992’.’’
SHORT TITLE OF 1990 AMENDMENT
Pub. L. 101–595, title VI, § 601, Nov. 16, 1990, 104 Stat.
2990, provided that: ‘‘This title [see Tables for classification] may be cited as the ‘Aleutian Trade Act of
1990’.’’
SHORT TITLE OF 1988 AMENDMENT
Pub. L. 100–424, § 1, Sept. 9, 1988, 102 Stat. 1585, provided that: ‘‘This Act [see Tables for classification]
may be cited as the ‘Commercial Fishing Industry Vessel Safety Act of 1988’.’’

§ 102

TITLE 46—SHIPPING

Pub. L. 100–418, title X, § 10001, Aug. 23, 1988, 102 Stat.
1570, provided that: ‘‘This subtitle [subtitle A
(§§ 10001–10003) of title X of Pub. L. 100–418, see Tables
for classification] may be cited as the ‘Foreign Shipping Practices Act of 1988’.’’
Pub. L. 100–239, § 1, Jan. 11, 1988, 101 Stat. 1778, provided that: ‘‘This Act [see Tables for classification]
may be cited as the ‘Commercial Fishing Industry Vessel Anti-Reflagging Act of 1987’.’’
SHORT TITLE OF 1986 AMENDMENT
Pub. L. 99–626, § 1, Nov. 7, 1986, 100 Stat. 3504, provided
that: ‘‘This act [see Tables for classification] may be
cited as the ‘Recreational Boating Safety Act of 1986’.’’
SHORT TITLE OF 1984 AMENDMENT
Pub. L. 98–498, title II, § 210, Oct. 19, 1984, 98 Stat. 2303,
provided that: ‘‘This subtitle [subtitle A (§§ 210–214) of
title II of Pub. L. 98–498, see Tables for classification]
may be cited as the ‘Maritime Safety Act of 1984’.’’
Pub. L. 98–364, title IV, § 401, July 17, 1984, 98 Stat. 445,
provided that: ‘‘This title [see Tables for classification]
may be cited as the ‘Commercial Fishing Industry Vessel Act’.’’
SHORT TITLE OF 1981 AMENDMENT
Pub. L. 97–31, § 1, Aug. 6, 1981, 95 Stat. 151, provided:
‘‘That this Act [see Tables for classification] may be
cited as the ‘Maritime Act of 1981’.’’
SHORT TITLE OF 1976 AMENDMENT
Pub. L. 94–372, § 1, July 31, 1976, 90 Stat. 1042, provided:
‘‘That this Act [see Tables for classification] may be
cited as the ‘Negotiated Shipbuilding Contracting Act
of 1976’.’’

son, means an individual who is a national of
the United States as defined in section 101(a)(22)
of the Immigration and Nationality Act (8
U.S.C. 1101(a)(22)).
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1486.)
HISTORICAL AND REVISION NOTES
Revised
Section
104 .............

Source (U.S. Code)

Source (Statutes at Large)

46:2101(3a).

The words ‘‘when used in reference to a natural person’’ are added because of provisions in the title which
treat entities as citizens. The words ‘‘or an individual
citizen of the Trust Territory of the Pacific Islands who
is exclusively domiciled in the Northern Mariana Islands within the meaning of section 1005(e) 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)’’ are omitted because the Covenant referred to became effective November 4, 1986, making citizens of the Northern Mariana Islands citizens or non-citizen nationals of the
United States.

§ 105. Consular officer
In this title, the term ‘‘consular officer’’
means an officer or employee of the United
States Government designated under regulations to issue visas.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1486.)
HISTORICAL AND REVISION NOTES

SHORT TITLE OF 1970 AMENDMENT
Pub. L. 91–469, § 44, Oct. 21, 1970, 84 Stat. 1039, provided
that: ‘‘This Act [see Tables for classification] may be
cited as the ‘Merchant Marine Act of 1970’.’’

Page 12

Revised
Section
105 .............

Source (U.S. Code)

Source (Statutes at Large)

46:2101(6).

SHORT TITLE OF 1936 AMENDMENT
Act June 29, 1936, ch. 858, title IX, § 906, 49 Stat. 2016,
as amended by Pub. L. 109–304, § 19, Oct. 6, 2006, 120 Stat.
1710, provided that: ‘‘This Act [see Tables for classification] may be cited as the Merchant Marine Act, 1936.’’

§ 102. Barge
In this title, the term ‘‘barge’’ means a nonself-propelled vessel.

§ 106. Documented vessel
In this title, the term ‘‘documented vessel’’
means a vessel for which a certificate of documentation has been issued under chapter 121 of
this title.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1486.)
HISTORICAL AND REVISION NOTES

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1486.)
HISTORICAL AND REVISION NOTES
Revised
Section
102 .............

Source (U.S. Code)

Source (Statutes at Large)

Revised
Section
106 .............

In this title, the term ‘‘Boundary Line’’ means
a line established under section 2(b) of the Act
of February 19, 1895 (33 U.S.C. 151).1

HISTORICAL AND REVISION NOTES

103 .............

46:2101(10).

In this title, the term ‘‘exclusive economic
zone’’ means the zone established by Presidential Proclamation 5030 of March 10, 1983 (16
U.S.C. 1453 note).
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1486.)

Source (U.S. Code)

Source (Statutes at Large)

§ 107. Exclusive economic zone

46:2101(2).

§ 103. Boundary Line

Revised
Section

Source (U.S. Code)

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

Source (Statutes at Large)
107 .............

46:2101(10a).

46:2101(3).

§ 108. Fisheries
§ 104. Citizen of the United States
In this title, the term ‘‘citizen of the United
States’’, when used in reference to a natural per1 So

in original. Probably should be ‘‘(33 U.S.C. 151(b)).’’.

In this title, the term ‘‘fisheries’’ includes
processing, storing, transporting (except in foreign commerce), planting, cultivating, catching,
taking, or harvesting fish, shellfish, marine animals, pearls, shells, or marine vegetation in the

Page 13

navigable waters of the United States or in the
exclusive economic zone.

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)
HISTORICAL AND REVISION NOTES

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)
HISTORICAL AND REVISION NOTES
Revised
Section
108 .............

§ 115

TITLE 46—SHIPPING

Source (U.S. Code)

Source (Statutes at Large)

46:12101(a)(1).

Revised
Section
111 .............

Source (U.S. Code)

Source (Statutes at Large)

46:2101(17b).

§ 112. State

§ 109. Foreign commerce or trade

In this title, the term ‘‘State’’ means a State
of the United States, the District of Columbia,
Guam, Puerto Rico, the Virgin Islands, American Samoa, the Northern Mariana Islands, and
any other territory or possession of the United
States.

(a) IN GENERAL.—In this title, the terms ‘‘foreign commerce’’ and ‘‘foreign trade’’ mean commerce or trade between a place in the United
States and a place in a foreign country.
(b) CAPITAL CONSTRUCTION FUNDS AND CONSTRUCTION-DIFFERENTIAL SUBSIDIES.—In the context of capital construction funds under chapter
535 of this title, and in the context of construction-differential subsidies under title V of the
Merchant Marine Act, 1936, the terms ‘‘foreign
commerce’’ and ‘‘foreign trade’’ also include, in
the case of liquid and dry bulk cargo carrying
services, trading between foreign ports in accordance with normal commercial bulk shipping
practices in a manner that will permit bulk vessels of the United States to compete freely with
foreign bulk vessels in their operation or competition for charters, subject to regulations prescribed by the Secretary of Transportation.

In this title, the term ‘‘undocumented’’ means
not having and not required to have a certificate
of documentation issued under chapter 121 of
this title.

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)

HISTORICAL AND REVISION NOTES

HISTORICAL AND REVISION NOTES

Revised
Section
109 .............

Source (U.S. Code)
46 App.:1244(a).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 905(a), 49 Stat. 2016;
June 23, 1938, ch. 600,
§ 39(a), 52 Stat. 964; Pub. L.
91–469, § 28, Oct. 21, 1970, 84
Stat. 1034; Pub. L. 92–402,
§ 2, Aug. 22, 1972, 86 Stat.
617;
Pub.
L.
97–31,
§ 12(133)(A), Aug. 6, 1981, 95
Stat. 165.

In subsection (a), the words ‘‘its Territories or possessions, or the District of Columbia’’ are omitted because
of the definition of ‘‘United States’’ in this chapter.
REFERENCES IN TEXT
The Merchant Marine Act, 1936, referred to in subsec.
(b), is act June 29, 1936, ch. 858, 49 Stat. 1985. Title V of
the Act enacted provisions set out as notes under section 53101 of this title. For complete classification of
this Act to the Code, see Short Title of 1936 Amendment note set out under section 101 of this title and
Tables.

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)
HISTORICAL AND REVISION NOTES
Revised
Section
112 .............

In this title, the term ‘‘foreign vessel’’ means
a vessel of foreign registry or operated under the
authority of a foreign country.

46:2101(36).

Revised
Section
113 .............

Source (U.S. Code)

Revised
Section
110 .............

Source (U.S. Code)

Source (Statutes at Large)

Source (Statutes at Large)

46:2101(41).

The words ‘‘certificate of documentation’’ are substituted for ‘‘document’’ for consistency with chapter
121.

§ 114. United States
In this title, the term ‘‘United States’’, when
used in a geographic sense, means the States of
the United States, the District of Columbia,
Guam, Puerto Rico, the Virgin Islands, American Samoa, the Northern Mariana Islands, and
any other territory or possession of the United
States.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)
HISTORICAL AND REVISION NOTES

114 .............

Source (U.S. Code)
46:2101(44).
46 App.:1244(g).

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)
HISTORICAL AND REVISION NOTES

Source (Statutes at Large)

§ 113. Undocumented

Revised
Section

§ 110. Foreign vessel

Source (U.S. Code)

Source (Statutes at Large)

June 29, 1936, ch. 858, title
IX, § 905(g), 49 Stat. 2016;
as added Pub. L. 96–453,
§ 3(b), Oct. 15, 1980, 94 Stat.
2008.

The language in 46 App. U.S.C. 1244(g) relating to the
areas and installations in the Republic of Panama is
omitted because those areas and installations were
turned over to Panama by the end of 1999.

46:2101(12).

§ 111. Numbered vessel
In this title, the term ‘‘numbered vessel’’
means a vessel for which a number has been issued under chapter 123 of this title.

§ 115. Vessel
In this title, the term ‘‘vessel’’ has the meaning given that term in section 3 of title 1.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1487.)

§ 116

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

115 .............

Source (Statutes at Large)

46:2101(45).

§ 116. Vessel of the United States
In this title, the term ‘‘vessel of the United
States’’ means a vessel documented under chapter 121 of this title (or exempt from documentation under section 12102(c) of this title), numbered under chapter 123 of this title, or titled
under the law of a State.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1488.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

116 .............

Source (Statutes at Large)

46:2101(46).

CHAPTER 3—FEDERAL MARITIME
COMMISSION
Sec.

301.
302.
303.
304.
305.
306.
307.

General organization.
Quorum.
Record of meetings and votes.
Delegation of authority.
Regulations.
Annual report.
Expenditures.

Page 14

(ii) appoint the heads of major organizational units, but only after consultation
with the other Commissioners;
(iii) distribute the business of the Commission among personnel and organizational units;
(iv) supervise the expenditure of money
for administrative purposes; and
(v) assign Commission personnel, including Commissioners, to perform duties and
powers delegated by the Commission under
section 304 of this title.
(B) NONAPPLICATION.—Subparagraph (A)
(other than clause (v)) does not apply to personnel employed regularly and full-time in
the offices of Commissioners other than the
Chairman.
(4) DELEGATION.—The Chairman may designate officers and employees under the Chairman’s jurisdiction to perform duties and powers of the Chairman, subject to the Chairman’s
supervision and direction.
(d) SEAL.—The Commission shall have a seal
which shall be judicially recognized.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1488.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

301(a) .........

46 App.:1111 note.

301(b) .........

46 App.:1111 note.

§ 301. General organization
(a) ORGANIZATION.—The Federal Maritime
Commission is an independent establishment of
the United States Government.
(b) COMMISSIONERS.—
(1) COMPOSITION.—The Commission is composed of 5 Commissioners, appointed by the
President by and with the advice and consent
of the Senate. Not more than 3 Commissioners
may be appointed from the same political
party.
(2) TERMS.—The term of each Commissioner
is 5 years, with each term beginning one year
apart. An individual appointed to fill a vacancy is appointed only for the unexpired term
of the individual being succeeded. A vacancy
shall be filled in the same manner as the original appointment. When the term of a Commissioner ends, the Commissioner may continue
to serve until a successor is appointed and
qualified.
(3) REMOVAL.—The President may remove a
Commissioner for inefficiency, neglect of
duty, or malfeasance in office.
(c) CHAIRMAN.—
(1) DESIGNATION.—The President shall designate one of the Commissioners as Chairman.
(2) GENERAL AUTHORITY.—The Chairman is
the chief executive and administrative officer
of the Commission. In carrying out the duties
and powers of the Commission (other than
under paragraph (3)), the Chairman is subject
to the policies, regulatory decisions, findings,
and determinations of the Commission.
(3) PARTICULAR DUTIES.—
(A) IN GENERAL.—The Chairman shall—
(i) appoint and supervise officers and employees of the Commission;

46 App.:1111 note.
301(c) .........

46 App.:1111 note.
46 App.:1111 note.

301(d) .........

46 App.:1111(c) (related to seal).

Source (Statutes at Large)
Reorg. Plan No. 7 of 1961,
eff. Aug. 12, 1961, § 101, 75
Stat. 840.
Reorg. Plan No. 7 of 1961,
eff. Aug. 12, 1961, § 102(a),
(c), 75 Stat. 840; Pub. L.
88–426,
title
III,
§ 305(19)(A), Aug. 14, 1964,
78 Stat. 425.
Pub. L. 89–56, June 30, 1965,
79 Stat. 195.
Reorg. Plan No. 6 of 1949,
eff. Aug. 20, 1949, 63 Stat.
1069.
Reorg. Plan No. 7 of 1961,
eff. Aug. 12, 1961, §§ 102(b),
104, 105(d), 75 Stat. 840, 841.
June 29, 1936, ch. 858, title
II, § 201(c) (related to
seal), 49 Stat. 1986.

In subsection (a), the words ‘‘is an independent establishment’’ are substituted for ‘‘shall not be a part of
any executive department or under the authority of the
head of any executive department’’ for consistency
with other titles of the United States Code and to
eliminate unnecessary words.
In subsection (b)(2), the words ‘‘The term of each
Commissioner is 5 years, with each term beginning one
year apart’’ are substituted for the language about
terms in section 102(c) of Reorganization Plan No. 7 of
1961 (46 App. U.S.C. 1111 note) and the Act of June 30,
1965 (Pub. L. 89–56, 79 Stat. 195), for clarity and to eliminate executed and obsolete language.
In subsection (c), section 104 of Reorganization Plan
No. 7 of 1961 is omitted as executed.
Subsection (c)(1) is based on section 102(b) of Reorganization Plan No. 7 of 1961. The words ‘‘from time to
time’’ are omitted as unnecessary.
Subsection (c)(2) is based on section 1 of Reorganization Plan No. 6 of 1949.
Subsection (c)(3) is based on section 2 of Reorganization Plan No. 6 of 1949 and section 105(d) of Reorganization Plan No. 7 of 1961.
Subsection (c)(4) is based on section 3 of Reorganization Plan No. 6 of 1949.

§ 302. Quorum
A vacancy or vacancies in the membership of
the Federal Maritime Commission do not impair

Page 15

§ 307

TITLE 46—SHIPPING
§ 305. Regulations

the power of the Commission to execute its
functions. The affirmative vote of a majority of
the Commissioners serving on the Commission
is required to dispose of any matter before the
Commission.

The Federal Maritime Commission may prescribe regulations to carry out its duties and
powers.

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1489.)

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1489.)
HISTORICAL AND REVISION NOTES

HISTORICAL AND REVISION NOTES
Revised
Section
302 .............

Source (U.S. Code)
46 App.:1111 note.

Source (Statutes at Large)
Reorg. Plan No. 7 of 1961,
eff. Aug. 12, 1961, § 102(d),
75 Stat. 840; Pub. L.
105–258, title II, § 202, Oct.
14, 1998, 112 Stat. 1915.

§ 303. Record of meetings and votes
The Federal Maritime Commission, through
its secretary, shall keep a record of its meetings
and the votes taken on any action, order, contract, or financial transaction of the Commission.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1489.)
HISTORICAL AND REVISION NOTES
Revised
Section
303 .............

Source (U.S. Code)
46 App.:1111(c) (related to records).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 201(c) (related to
records), 49 Stat. 1986.

The words ‘‘true’’ and ‘‘yea-and-nay’’ are omitted as
unnecessary.

§ 304. Delegation of authority
(a) DELEGATION.—The Federal Maritime Commission, by published order or regulation, may
delegate to a division of the Commission, an individual Commissioner, an employee board, or
an officer or employee of the Commission, any
of its duties or powers, including those relating
to hearing, determining, ordering, certifying, reporting, or otherwise acting on any matter. This
subsection does not affect section 556(b) of title
5.
(b) REVIEW.—The Commission may review any
action taken under a delegation of authority
under subsection (a). The review may be taken
on the Commission’s own initiative or on the petition of a party to or an intervenor in the action, within the time and in the manner prescribed by the Commission. The vote of a majority of the Commission, less one member, is sufficient to bring an action before the Commission
for review.
(c) DEEMED ACTION OF COMMISSION.—If the
Commission declines review, or if review is not
sought, within the time prescribed under subsection (b), the action taken under the delegation of authority is deemed to be the action of
the Commission.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1489.)
HISTORICAL AND REVISION NOTES
Revised
Section
304 .............

Source (U.S. Code)
46 App.:1111 note.

Source (Statutes at Large)
Reorg. Plan No. 7 of 1961,
eff.
Aug.
12,
1961,
§ 105(a)–(c), 75 Stat. 841.

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

305 .............

46 App.:1111(c) (related to rules and
regulations).

June 29, 1936, ch. 858, title
II, § 201(c) (related to rules
and regulations), 49 Stat.
1986.
Pub. L. 98–237, § 17, Mar. 20,
1984, 98 Stat. 84.

46 App.:1716.

The words ‘‘to carry out its duties and powers’’ are
substituted for ‘‘in regard to its procedure and the conduct of its business’’ in 46 App. U.S.C. 1111(c) and ‘‘to
carry out this chapter’’ in 46 App. U.S.C. 1716(a) for consistency in the revised title. The text of 46 App. U.S.C.
1716(b) is omitted as executed and obsolete.

§ 306. Annual report
(a) IN GENERAL.—Not later than April 1 of each
year, the Federal Maritime Commission shall
submit a report to Congress. The report shall include the results of its investigations, a summary of its transactions, the purposes for which
all of its expenditures were made, and any recommendations for legislation.
(b) REPORT ON FOREIGN LAWS AND PRACTICES.—
The Commission shall include in its annual report to Congress—
(1) a list of the 20 foreign countries that generated the largest volume of oceanborne liner
cargo for the most recent calendar year in bilateral trade with the United States;
(2) an analysis of conditions described in section 42302(a) of this title being investigated or
found to exist in foreign countries;
(3) any actions being taken by the Commission to offset those conditions;
(4) any recommendations for additional legislation to offset those conditions; and
(5) a list of petitions filed under section
42302(b) of this title that the Commission rejected and the reasons for each rejection.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1489.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

306(a) .........

46 App.:1118 (related
to Commission).

306(b) .........

46 App.:1710a(g).

June 29, 1936, ch. 858, title
II, § 208 (related to Commission), 49 Stat. 1988;
Pub. L. 94–273, § 36, Apr. 21,
1976, 90 Stat. 380; Pub. L.
97–31, § 12(65), Aug. 6, 1981,
95 Stat. 159.
Pub. L. 100–418, title X,
§ 10002(g), Aug. 23, 1988, 102
Stat. 1572.

In subsection (a), the words ‘‘a statement of all receipts under this chapter’’ are omitted as inapplicable
to the Commission.

§ 307. Expenditures
The Federal Maritime Commission may make
such expenditures as are necessary in the performance of its functions from funds appropriated or otherwise made available to it, which
appropriations are authorized.

§ 501

TITLE 46—SHIPPING

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1490.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

307 .............

46 App.:1111(d) (related to Commission).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 201(d) (related to
Commission),
49
Stat.
1986;
Pub.
L.
97–31,
§ 12(58)(B), Aug. 6, 1981, 95
Stat. 158.

The words ‘‘by this chapter’’, ‘‘after June 29, 1936’’,
and ‘‘further’’ are omitted as unnecessary.

CHAPTER 5—OTHER GENERAL PROVISIONS

in the interest of national defense, the individual may
waive compliance with those laws to the extent, in the
manner, and on the terms the individual prescribes.’’

§ 502. Cargo exempt from forfeiture
Cargo on a vessel is exempt from forfeiture
under this title if—
(1) the cargo is owned in good faith by a person not the owner, master, or crewmember of
the vessel; and
(2) the customs duties on the cargo have
been paid or secured for payment as provided
by law.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1490.)

Sec.

501.
502.
503.
504.
505.

Waiver of navigation and vessel-inspection
laws.
Cargo exempt from forfeiture.
Notice of seizure.
Remission of fees and penalties.
Penalty for violating regulation or order.

§ 501. Waiver of navigation and vessel-inspection
laws
(a) ON REQUEST OF SECRETARY OF DEFENSE.—
On request of the Secretary of Defense, the head
of an agency responsible for the administration
of the navigation or vessel-inspection laws shall
waive compliance with those laws to the extent
the Secretary considers necessary in the interest of national defense.
(b) BY HEAD OF AGENCY.—When the head of an
agency responsible for the administration of the
navigation or vessel-inspection laws considers it
necessary in the interest of national defense, the
individual, following a determination by the
Maritime Administrator, acting in the Administrator’s capacity as Director, National Shipping
Authority, of the non-availability of qualified
United States flag capacity to meet national defense requirements, may waive compliance with
those laws to the extent, in the manner, and on
the terms the individual, in consultation with
the Administrator, acting in that capacity, prescribes.
(c) TERMINATION OF AUTHORITY.—The authority granted by this section shall terminate at
such time as the Congress by concurrent resolution or the President may designate.

HISTORICAL AND REVISION NOTES
Revised
Section
502 .............

HISTORICAL AND REVISION NOTES
Revised
Section
503 .............

46 App.:3 note prec.

Dec. 27, 1950, ch. 1155, §§ 1, 2,
64 Stat. 1120.

In subsection (b), the words ‘‘When the head of an
agency . . . considers it necessary’’ are substituted for
‘‘either upon his own initiative or upon the written recommendation of the head of any other Government
agency, when he deems that such action is necessary’’
to eliminate unnecessary words.
AMENDMENTS
2008—Subsec. (b). Pub. L. 110–417 reenacted heading
without change and amended text generally. Prior to
amendment, text read as follows: ‘‘When the head of an
agency responsible for the administration of the navigation or vessel-inspection laws considers it necessary

Source (U.S. Code)
46 App.:327.

Source (Statutes at Large)
R.S. § 4379.

§ 504. Remission of fees and penalties
Any part of a fee, tax, or penalty paid or a forfeiture incurred under a law or regulation relating to vessels or seamen may be remitted if—
(1) application for the remission is made
within one year after the date of the payment
or forfeiture; and
(2) it is found that the fee, tax, penalty, or
forfeiture was improperly or excessively imposed.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1491.)

504 .............

501 .............

R.S. § 4378.

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1490.)

HISTORICAL AND REVISION NOTES
Source (Statutes at Large)

46 App.:326.

Source (Statutes at Large)

When a forfeiture of a vessel or cargo accrues,
the official of the United States Government required to give notice of the seizure of the vessel
or cargo shall include in the notice, if they are
known to that official, the name and the place
of residence of the owner or consignee at the
time of the seizure.

Revised
Section

Source (U.S. Code)

Source (U.S. Code)

§ 503. Notice of seizure

(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1490;
Pub. L. 110–417, div. C, title XXXV, § 3510, Oct. 14,
2008, 122 Stat. 4769.)

Revised
Section

Page 16

HISTORICAL AND REVISION NOTES
Source (U.S. Code)

Source (Statutes at Large)

46:2108.

This section replaces 46 U.S.C. 2108, which was enacted as part of the codification of subtitle II of title
46 in 1983. That provision was based on section 26 of the
Act of June 26, 1884, ch. 121, 23 Stat. 59, which prior to
the subtitle II codification appeared at 46 U.S.C. 8 (1982
ed.). In the enactment of 46 U.S.C. 2108, the scope of the
1884 provision was narrowed, presumably inadvertently.
This section restores the remissions authority to its
prior scope. Note that 19 C.F.R. § 4.24 (2003) still refers
to ‘‘the authority to make refunds in accordance with
section 26 of the Act of June 26, 1884 (46 U.S.C. 8)’’ as
if that provision had not been replaced by 46 U.S.C. 2108
in 1983.

§ 505. Penalty for violating regulation or order
A person convicted of knowingly and willfully
violating a regulation or order of the Federal

Page 17

Maritime Commission or the Secretary of
Transportation under subtitle IV or V of this
title, for which no penalty is expressly provided,
shall be fined not more than $500. Each day of a
continuing violation is a separate offense.
(Pub. L. 109–304, § 4, Oct. 6, 2006, 120 Stat. 1491.)
HISTORICAL AND REVISION NOTES
Revised
Section
505 .............

Chapter

Official Logbooks ................................ 11301
Offenses and Penalties ...................... 11501

121.
123.
125.

Documentation of Vessels ................. 12101
Numbering Undocumented Vessels 12301
Vessel Identification System ............ 12501

PART H—IDENTIFICATION OF VESSELS

PART I—STATE BOATING SAFETY PROGRAMS
Source (U.S. Code)
46 App.:1228 (last
par.).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VIII, § 806(d); as added
Aug. 4, 1939, ch. 417, § 13, 53
Stat. 1187; Pub. L. 97–31,
§ 12(125), Aug. 6, 1981, 95
Stat. 164.

131.

Recreational Boating Safety ............ 13101

141.
143.
145.
147.

General ..................................................
Convention Measurement .................
Regulatory Measurement ..................
Penalties ................................................

PART J—MEASUREMENT OF VESSELS

Chapter

Sec.

General ..................................................
Operation of Vessels Generally .......

2101
2301

PART B—INSPECTION AND REGULATION OF VESSELS

47.

General ..................................................
Management of Vessels ......................
Inspection Generally ..........................
Carriage of Passengers ......................
Carriage of Liquid Bulk Dangerous
Cargoes ...............................................
Repealed.] ..............................................
Uninspected Vessels Generally .......
Recreational Vessels ..........................
Uninspected Commercial Fishing
Industry Vessels ...............................
Abandonment of Barges ....................

51.

Load Lines ............................................

61.
63.

Reporting Marine Casualties ...........
Investigating Marine Casualties .....

[39.
41.
43.
45.

3101
3201
3301
3501
3701
4101
4301
4501
4701

PART C—LOAD LINES OF VESSELS

5101

PART D—MARINE CASUALTIES

6101
6301

2006—Pub. L. 109–304, § 15(1), Oct. 6, 2006, 120 Stat. 1702,
in each chapter item, capitalized first letter of each
word containing 4 or more letters, struck out item for
chapter 39 ‘‘Carriage of animals’’, and substituted ‘‘Uninspected Commercial Fishing Industry Vessels’’ for
‘‘Fish processing vessels’’ in item 45.
2000—Pub. L. 106–398, § 1 [[div. A], title X, § 1087(g)(6)],
Oct. 30, 2000, 114 Stat. 1654, 1654A–294, substituted ‘‘mariner benefits’’ for ‘‘Mariner Benefits’’ in item 112.
1998—Pub. L. 105–368, title IV, § 402(b), Nov. 11, 1998,
112 Stat. 3337, added item 112.
1996—Pub. L. 104–324, title VI, § 602(b), Oct. 19, 1996, 110
Stat. 3930, added item 32.
1992—Pub. L. 102–587, title V, § 5304, Nov. 4, 1992, 106
Stat. 5083, added item 47.
1988—Pub. L. 100–710, title I, § 101(b), Nov. 23, 1988, 102
Stat. 4738, added item 125.
Pub. L. 100–424, § 6(b), Sept. 9, 1988, 102 Stat. 1592,
added item 106.
1986—Pub. L. 99–509, title V, § 5101(1), Oct. 21, 1986, 100
Stat. 1913, inserted items for parts C and J.
1985—Pub. L. 99–36, § 1(a)(9)(A), May 15, 1985, 99 Stat.
67, substituted ‘‘Merchant Seamen Licenses, Certifications, and’’ for ‘‘Licenses, Certificates, and Merchant
Mariners’ ’’ in heading for part E.
1984—Pub. L. 98–364, title IV, § 402(7)(A), July 17, 1984,
98 Stat. 446, inserted ‘‘generally’’ in item 41, reenacted
item 43 without change, and added item 45.

PART E—MERCHANT SEAMEN LICENSES, CERTIFICATES,
AND DOCUMENTS

71.
73.
75.
77.

Licenses and Certificates of Registry .....................................................
Merchant Mariners’ Documents ......
General Procedures for Licensing,
Certification, and Documentation
Suspension and Revocation .............
General ..................................................
Masters and Officers ..........................
Pilots ......................................................
Unlicensed Personnel ........................
Small Vessel Manning ........................
Tank Vessel Manning Standards ....
Great Lakes Pilotage ..........................

HISTORICAL AND REVISION NOTES
Part A contains general provisions that apply
throughout the subtitle and provisions that apply generally to the operation of all vessels.

7501
7701

CHAPTER 21—GENERAL
Sec.

8101
8301
8501
8701
8901
9101
9301

PART G—MERCHANT SEAMEN PROTECTION AND RELIEF

101.
103.
105.
106.
107.
109.
111.
112.

General ..................................................
Foreign and Intercoastal Voyages ..
Coastwise Voyages ..............................
Fishing Voyages ...................................
Effects of Deceased Seamen .............
Proceedings on Unseaworthiness ...
Protection and Relief .........................
Merchant Mariner Benefits ..............

PART A—GENERAL PROVISIONS

7101
7301

PART F—MANNING OF VESSELS

81.
83.
85.
87.
89.
91.
93.

14101
14301
14501
14701

AMENDMENTS

PART A—GENERAL PROVISIONS

31.
32.
33.
35.
37.

Sec.

113.
115.

Subtitle II—Vessels and Seamen

21.
23.

§ 505

TITLE 46—SHIPPING

10101
10301
10501
10601
10701
10901
11101
11201

2101.
2102.
2103.
2104.
2105.
2106.
2107.
[2108.
2109.
2110.
2111.
2112.
2113.
2114.
2115.
2116.
2117.
2118.

General definitions.
Limited definitions.
Superintendence of the merchant marine.
Delegation.
Report.
Liability in rem.
Civil penalty procedures.
Repealed.]
Public vessels.
Fees.
Pay for overtime services.
Authority to change working hours.
Authority to exempt certain vessels.
Protection of seamen against discrimination.
Civil penalty to enforce alcohol and dangerous drug testing.
Marine safety strategy, goals, and performance assessments.
Termination for unsafe operation.
Establishment of equipment standards.

§ 2101

TITLE 46—SHIPPING

Sec.

HISTORICAL AND REVISION NOTES
Chapter 21 contains definitions that are general in
nature and applicable to all references within Subtitle
II—Vessels and Seamen. The chapter provides the basic
authority and responsibility for the enforcement and
administration of this subtitle with appropriate delegation and reporting requirements.
AMENDMENTS
2010—Pub. L. 111–281, title V, § 522(b), title VI, § 608(b),
Oct. 15, 2010, 124 Stat. 2957, 2968, added items 2116 to
2118.
2008—Pub. L. 110–181, div. C, title XXXV, § 3529(a)(1),
Jan. 28, 2008, 122 Stat. 603, struck out item 2108 ‘‘Refund
of penalties’’.
1996—Pub. L. 104–324, title III, § 303(b), Oct. 19, 1996, 110
Stat. 3917, added item 2115.
1990—Pub. L. 101–508, title X, § 10401(b), Nov. 5, 1990,
104 Stat. 1388–398, substituted ‘‘Fees’’ for ‘‘Fees prohibited’’ in item 2110.
1984—Pub. L. 98–557, § 13(b), Oct. 30, 1984, 98 Stat. 2864,
added item 2114.

§ 2101. General definitions
In this subtitle—
(1) ‘‘associated equipment’’—
(A) means—
(i) a system, accessory, component, or
appurtenance of a recreational vessel; or
(ii) a marine safety article intended for
use on board a recreational vessel; but
(B) with the exception of emergency locator beacons for recreational vessels operating beyond 3 nautical miles from the baselines from which the territorial sea of the
United States is measured or beyond 3 nautical miles from the coastline of the Great
Lakes, does not include radio equipment.
[(2) to (3a) Repealed. Pub. L. 109–304,
§ 15(2)(A), Oct. 6, 2006, 120 Stat. 1702.]
(4) ‘‘Coast Guard’’ means the organization
established and continued under section 1 of
title 14.
(5) ‘‘commercial service’’ includes any type
of trade or business involving the transportation of goods or individuals, except service
performed by a combatant vessel.
(5a) ‘‘consideration’’ means an economic
benefit, inducement, right, or profit including
pecuniary payment accruing to an individual,
person, or entity, but not including a voluntary sharing of the actual expenses of the
voyage, by monetary contribution or donation
of fuel, food, beverage, or other supplies.
[(6) Repealed. Pub. L. 109–304, § 15(2)(A), Oct.
6, 2006, 120 Stat. 1702.]
(7) ‘‘crude oil’’ means a liquid hydrocarbon
mixture occurring naturally in the earth,
whether or not treated to render it suitable for
transportation, and includes crude oil from
which certain distillate fractions may have
been removed, and crude oil to which certain
distillate fractions may have been added.
(8) ‘‘crude oil tanker’’ means a tanker engaged in the trade of carrying crude oil.
(8a) ‘‘dangerous drug’’ means a narcotic
drug, a controlled substance, or a controlled
substance analog (as defined in section 102 of
the Comprehensive Drug Abuse Prevention
and Control Act of 1970 (21 U.S.C. 802)).
(9) ‘‘discharge’’, when referring to a substance discharged from a vessel, includes spill-

Page 18

ing, leaking, pumping, pouring, emitting, emptying, or dumping, however caused.
[(10), (10a) Repealed. Pub. L. 109–304,
§ 15(2)(A), Oct. 6, 2006, 120 Stat. 1702.]
(10b) ‘‘ferry’’ means a vessel that is used on
a regular schedule—
(A) to provide transportation only between
places that are not more than 300 miles
apart; and
(B) to transport only—
(i) passengers; or
(ii) vehicles, or railroad cars, that are
being used, or have been used, in transporting passengers or goods.
(11) ‘‘fish’’ means finfish, mollusks, crustaceans, and all other forms of marine animal
and plant life, except marine mammals and
birds.
(11a) ‘‘fishing vessel’’ means a vessel that
commercially engages in the catching, taking,
or harvesting of fish or an activity that can
reasonably be expected to result in the catching, taking, or harvesting of fish.
(11b) ‘‘fish processing vessel’’ means a vessel
that commercially prepares fish or fish products other than by gutting, decapitating, gilling, skinning, shucking, icing, freezing, or
brine chilling.
(11c) ‘‘fish tender vessel’’ means a vessel
that commercially supplies, stores, refrigerates, or transports fish, fish products, or materials directly related to fishing or the preparation of fish to or from a fishing, fish processing, or fish tender vessel or a fish processing
facility.
[(12) Repealed. Pub. L. 109–304, § 15(2)(A), Oct.
6, 2006, 120 Stat. 1702.]
(13) ‘‘freight vessel’’ means a motor vessel of
more than 15 gross tons as measured under
section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section
14104 of this title that carries freight for hire,
except an oceanographic research vessel or an
offshore supply vessel.
(13a) ‘‘Great Lakes barge’’ means a non-selfpropelled vessel of at least 3,500 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title operating on the Great Lakes.
(14) ‘‘hazardous material’’ means a liquid
material or substance that is—
(A) flammable or combustible;
(B) designated a hazardous substance
under section 311(b) of the Federal Water
Pollution Control Act (33 U.S.C. 1321); or
(C) designated a hazardous material under
section 5103(a) of title 49;
(14a) ‘‘major conversion’’ means a conversion of a vessel that—
(A) substantially changes the dimensions
or carrying capacity of the vessel;
(B) changes the type of the vessel;
(C) substantially prolongs the life of the
vessel; or
(D) otherwise so changes the vessel that it
is essentially a new vessel, as decided by the
Secretary.

Page 19

TITLE 46—SHIPPING

(15) ‘‘marine environment’’ means—
(A) the navigable waters of the United
States and the land and resources in and
under those waters;
(B) the waters and fishery resources of an
area over which the United States asserts
exclusive fishery management authority;
(C) the seabed and subsoil of the outer
Continental Shelf of the United States, the
resources of the Shelf, and the waters
superjacent to the Shelf; and
(D) the recreational, economic, and scenic
values of the waters and resources referred
to in subclauses (A)–(C) of this clause.
(15a) ‘‘mobile offshore drilling unit’’ means a
vessel capable of engaging in drilling operations for the exploration or exploitation of
subsea resources.
(16) ‘‘motor vessel’’ means a vessel propelled
by machinery other than steam.
(17) ‘‘nautical school vessel’’ means a vessel
operated by or in connection with a nautical
school or an educational institution under section 558 of title 40.
(17a) ‘‘navigable waters of the United
States’’ includes all waters of the territorial
sea of the United States as described in Presidential Proclamation No. 5928 of December 27,
1988.
[(17b) Repealed. Pub. L. 109–304, § 15(2)(A),
Oct. 6, 2006, 120 Stat. 1702.]
(18) ‘‘oceanographic research vessel’’ means
a vessel that the Secretary finds is being employed only in instruction in oceanography or
limnology, or both, or only in oceanographic
or limnological research, including studies
about the sea such as seismic, gravity meter,
and magnetic exploration and other marine
geophysical or geological surveys, atmospheric research, and biological research.
(19) ‘‘offshore supply vessel’’ means a motor
vessel that regularly carries goods, supplies,
individuals in addition to the crew, or equipment in support of exploration, exploitation,
or production of offshore mineral or energy resources.
(20) ‘‘oil’’ includes oil of any type or in any
form, including petroleum, fuel oil, sludge, oil
refuse, and oil mixed with wastes except
dredged spoil.
(20a) ‘‘oil spill response vessel’’ means a vessel that is designated in its certificate of inspection as such a vessel, or that is adapted to
respond to a discharge of oil or a hazardous
material.
(20b) ‘‘overall in length’’ means—
(A) for a foreign vessel or a vessel engaged
on a foreign voyage, the greater of—
(i) 96 percent of the length on a waterline
at 85 percent of the least molded depth
measured from the top of the keel (or on a
vessel designed with a rake of keel, on a
waterline parallel to the designed waterline); or
(ii) the length from the fore side of the
stem to the axis of the rudder stock on
that waterline; and
(B) for any other vessel, the horizontal distance of the hull between the foremost part
of the stem and the aftermost part of the
stern, excluding fittings and attachments.

§ 2101

(21) ‘‘passenger’’—
(A) means an individual carried on the vessel except—
(i) the owner or an individual representative of the owner or, in the case of a vessel
under charter, an individual charterer or
individual representative of the charterer;
(ii) the master; or
(iii) a member of the crew engaged in the
business of the vessel who has not contributed consideration for carriage and who is
paid for on board services;
(B) on an offshore supply vessel, means an
individual carried on the vessel except—
(i) an individual included in clause (i),
(ii), or (iii) of subparagraph (A) of this
paragraph;
(ii) an employee of the owner, or of a
subcontractor to the owner, engaged in the
business of the owner;
(iii) an employee of the charterer, or of
a subcontractor to the charterer, engaged
in the business of the charterer; or
(iv) an individual employed in a phase of
exploration, exploitation, or production of
offshore mineral or energy resources
served by the vessel;
(C) on a fishing vessel, fish processing vessel, or fish tender vessel, means an individual carried on the vessel except—
(i) an individual included in clause (i),
(ii), or (iii) of subparagraph (A) of this
paragraph;
(ii) a managing operator;
(iii) an employee of the owner, or of a
subcontractor to the owner, engaged in the
business of the owner;
(iv) an employee of the charterer, or of a
subcontractor to the charterer, engaged in
the business of the charterer; or
(v) an observer or sea sampler on board
the vessel pursuant to a requirement of
State or Federal law; or
(D) on a sailing school vessel, means an individual carried on the vessel except—
(i) an individual included in clause (i),
(ii), or (iii) of subparagraph (A) of this
paragraph;
(ii) an employee of the owner of the vessel engaged in the business of the owner,
except when the vessel is operating under
a demise charter;
(iii) an employee of the demise charterer
of the vessel engaged in the business of the
demise charterer; or
(iv) a sailing school instructor or sailing
school student.
(21a) ‘‘passenger for hire’’ means a passenger
for whom consideration is contributed as a
condition of carriage on the vessel, whether
directly or indirectly flowing to the owner,
charterer, operator, agent, or any other person
having an interest in the vessel.
(22) ‘‘passenger vessel’’ means a vessel of at
least 100 gross tons as measured under section
14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title—

§ 2101

TITLE 46—SHIPPING

(A) carrying more than 12 passengers, including at least one passenger for hire;
(B) that is chartered and carrying more
than 12 passengers;
(C) that is a submersible vessel carrying at
least one passenger for hire; or
(D) that is a ferry carrying a passenger.
(23) ‘‘product carrier’’ means a tanker engaged in the trade of carrying oil except crude
oil.
(24) ‘‘public vessel’’ means a vessel that—
(A) is owned, or demise chartered, and operated by the United States Government or
a government of a foreign country; and
(B) is not engaged in commercial service.
(25) ‘‘recreational vessel’’ means a vessel—
(A) being manufactured or operated primarily for pleasure; or
(B) leased, rented, or chartered to another
for the latter’s pleasure.
(26) ‘‘recreational vessel manufacturer’’
means a person engaged in the manufacturing,
construction, assembly, or importation of recreational vessels, components, or associated
equipment.
(26a) ‘‘riding gang member’’ means an individual who—
(A) has not been issued a merchant mariner document under chapter 73;
(B) does not perform—
(i) watchstanding, automated engine
room duty watch, or personnel safety functions; or
(ii) cargo handling functions, including
any activity relating to the loading or unloading of cargo, the operation of cargo-related equipment (whether or not integral
to the vessel), and the handling of mooring
lines on the dock when the vessel is made
fast or let go;
(C) does not serve as part of the crew complement required under section 8101;
(D) is not a member of the steward’s department; and
(E) is not a citizen or temporary or permanent resident of a country designated by the
United States as a sponsor of terrorism or
any other country that the Secretary, in
consultation with the Secretary of State and
the heads of other appropriate United States
agencies, determines to be a security threat
to the United States.
(27) ‘‘sailing instruction’’ means teaching,
research, and practical experience in operating
vessels propelled primarily by sail and may include—
(A) any subject related to that operation
and to the sea, including seamanship, navigation, oceanography, other nautical and
marine sciences, and maritime history and
literature; and
(B) only when in conjunction with a subject referred to in subclause (A) of this
clause, instruction in mathematics and language arts skills to sailing school students
having learning disabilities.
(28) ‘‘sailing school instructor’’ means an individual who is on board a sailing school ves-

Page 20

sel to provide sailing instruction, but does not
include an operator or crewmember who is
among those required to be on board the vessel
to meet a requirement established under part
F of this subtitle.
(29) ‘‘sailing school student’’ means an individual who is on board a sailing school vessel
to receive sailing instruction.
(30) ‘‘sailing school vessel’’ means a vessel—
(A) that is less than 500 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section 14302 of this title as prescribed by the
Secretary under section 14104 of this title;
(B) carrying more than 6 individuals who
are sailing school instructors or sailing
school students;
(C) principally equipped for propulsion by
sail, even if the vessel has an auxiliary
means of propulsion; and
(D) owned or demise chartered, and operated by an organization described in section
501(c)(3) of the Internal Revenue Code of 1986
(26 U.S.C. 501(c)(3)) and exempt from tax
under section 501(a) of that Code, or by a
State or political subdivision of a State, during times that the vessel is operated by the
organization, State, or political subdivision
only for sailing instruction.
(31) ‘‘scientific personnel’’ means individuals
on board an oceanographic research vessel
only to engage in scientific research, or to instruct or receive instruction in oceanography
or limnology.
(32) ‘‘seagoing barge’’ means a non-self-propelled vessel of at least 100 gross tons as measured under section 14502 of this title, or an alternate tonnage measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title making voyages beyond the Boundary Line.
(33) ‘‘seagoing motor vessel’’ means a motor
vessel of at least 300 gross tons as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302 of
this title as prescribed by the Secretary under
section 14104 of this title making voyages beyond the Boundary Line.
(34) ‘‘Secretary’’ means the Secretary of the
department in which the Coast Guard is operating.
(35) ‘‘small passenger vessel’’ means a wingin-ground craft, regardless of tonnage, carrying at least one passenger for hire, and a vessel of less than 100 gross tons as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302 of
this title as prescribed by the Secretary under
section 14104 of this title—
(A) carrying more than 6 passengers, including at least one passenger for hire;
(B) that is chartered with the crew provided or specified by the owner or the owner’s representative and carrying more than 6
passengers;
(C) that is chartered with no crew provided
or specified by the owner or the owner’s representative and carrying more than 12 passengers;
(D) that is a submersible vessel carrying at
least one passenger for hire; or

Page 21

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TITLE 46—SHIPPING

(E) that is a ferry carrying more than 6
passengers.
[(36) Repealed. Pub. L. 109–304, § 15(2)(A), Oct.
6, 2006, 120 Stat. 1702.]
(37) ‘‘steam vessel’’ means a vessel propelled
in whole or in part by steam, except a recreational vessel of not more than 40 feet in
length.
(37a) ‘‘submersible vessel’’ means a vessel
that is capable of operating below the surface
of the water.
(38) ‘‘tanker’’ means a self-propelled tank
vessel constructed or adapted primarily to
carry oil or hazardous material in bulk in the
cargo spaces.
(39) ‘‘tank vessel’’ means a vessel that is
constructed or adapted to carry, or that carries, oil or hazardous material in bulk as cargo
or cargo residue, and that—
(A) is a vessel of the United States;
(B) operates on the navigable waters of the
United States; or
(C) transfers oil or hazardous material in a
port or place subject to the jurisdiction of
the United States.
(40) ‘‘towing vessel’’ means a commercial
vessel engaged in or intending to engage in the
service of pulling, pushing, or hauling along
side, or any combination of pulling, pushing,
or hauling along side.
[(41) Repealed. Pub. L. 109–304, § 15(2)(A), Oct.
6, 2006, 120 Stat. 1702.]
(42) ‘‘uninspected passenger vessel’’ means
an uninspected vessel—
(A) of at least 100 gross tons as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title—
(i) carrying not more than 12 passengers,
including at least one passenger for hire;
or
(ii) that is chartered with the crew provided or specified by the owner or the owner’s representative and carrying not more
than 12 passengers; and
(B) of less than 100 gross tons as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title—
(i) carrying not more than 6 passengers,
including at least one passenger for hire;
or
(ii) that is chartered with the crew provided or specified by the owner or the owner’s representative and carrying not more
than 6 passengers.
(43) ‘‘uninspected vessel’’ means a vessel not
subject to inspection under section 3301 of this
title that is not a recreational vessel.
[(44) to (46) Repealed. Pub. L. 109–304,
§ 15(2)(A), Oct. 6, 2006, 120 Stat. 1702.]
(47) ‘‘vessel of war’’ means a vessel—
(A) belonging to the armed forces of a
country;
(B) bearing the external marks distinguishing vessels of war of that country;
(C) under the command of an officer commissioned by the government of that coun-

try and whose name appears in the appropriate service list or its equivalent; and
(D) staffed by a crew under regular armed
forces discipline.
(48) ‘‘wing-in-ground craft’’ means a vessel
that is capable of operating completely above
the surface of the water on a dynamic air
cushion created by aerodynamic lift due to the
ground effect between the vessel and the water’s surface.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 501; Pub. L.
98–364, title IV, § 402(1), July 17, 1984, 98 Stat. 445;
Pub. L. 98–454, title III, § 301(a), Oct. 5, 1984, 98
Stat. 1734; Pub. L. 98–557, § 34(a), Oct. 30, 1984, 98
Stat. 2876; Pub. L. 99–307, § 1(1), (2), May 19, 1986,
100 Stat. 444; Pub. L. 99–509, title V, § 5102(b)(1),
Oct. 21, 1986, 100 Stat. 1926; Pub. L. 99–514, § 2,
Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99–640,
§§ 10(b)(1), 11(a), 13(d), Nov. 10, 1986, 100 Stat.
3549–3551; Pub. L. 100–239, § 6(a)(1), Jan. 11, 1988,
101 Stat. 1781; Pub. L. 100–424, § 8(c)(1), Sept. 9,
1988, 102 Stat. 1593; Pub. L. 100–710, title I,
§ 104(a)(1), (2), Nov. 23, 1988, 102 Stat. 4749; Pub. L.
101–225, title II, § 209, Dec. 12, 1989, 103 Stat. 1913;
Pub. L. 101–380, title IV, § 4103(a)(2)(A), Aug. 18,
1990, 104 Stat. 511; Pub. L. 101–595, title VI,
§ 603(1), Nov. 16, 1990, 104 Stat. 2993; Pub. L.
102–587, title V, § 5208(a), Nov. 4, 1992, 106 Stat.
5075; Pub. L. 103–206, title V, §§ 502–510, Dec. 20,
1993, 107 Stat. 2439–2441; Pub. L. 103–272, § 5(l),
July 5, 1994, 108 Stat. 1375; Pub. L. 104–324, title
VII, § 709, title XI, § 1104(a), Oct. 19, 1996, 110 Stat.
3934, 3966; Pub. L. 105–383, title III, § 301(b)(1),
Nov. 13, 1998, 112 Stat. 3417; Pub. L. 107–217,
§ 3(m)(1), Aug. 21, 2002, 116 Stat. 1302; Pub. L.
107–295, title IV, § 419, Nov. 25, 2002, 116 Stat. 2124;
Pub. L. 109–241, title III, §§ 301, 312(b), July 11,
2006, 120 Stat. 526, 533; Pub. L. 109–304, § 15(2),
Oct. 6, 2006, 120 Stat. 1702; Pub. L. 111–281, title
VI, §§ 617(a)(1)(A), 618, Oct. 15, 2010, 124 Stat. 2972,
2975; Pub. L. 111–330, § 1(9), Dec. 22, 2010, 124 Stat.
3570.)
HISTORICAL AND REVISION NOTES
A number of definitions are provided because of the
need to define jurisdictional and applicability limits of
various sections to the many types and classes of vessels.
Revised section

Source section (U.S. Code)

2101(1) ..........................................
2101(2) ..........................................
2101(3) ..........................................
2101(4) ..........................................
2101(5) ..........................................
2101(6) ..........................................
2101(7) ..........................................
2101(8) ..........................................
2101(9) ..........................................
2101(10) ........................................
2101(11) ........................................
2101(12) ........................................

46:1452(8)
..............................................
..............................................
14:1
46:391a(2)(H)
..............................................
46:391a(2)(S)
46:391a(2)(N)
46:391a(2)(A)
46:65(1)
46:65(2)
46:391a(2)(B)
46:597
46:599
46:404
46:390(e)
46:391a(2)(C)
46:391a(2)(D)
46:361
46:367
46:404
46:404
46:1295f(c)
46:1295g(e)(1)
46:441(1)
46:404–1(1)
46:391a(2)(E)
46:390(a)
46:404–1(4)
46:1452(5)

2101(13) ........................................
2101(14) ........................................
2101(15) ........................................
2101(16) ........................................
2101(17) ........................................
2101(18)
2101(19)
2101(20)
2101(21)

........................................
........................................
........................................
........................................

§ 2101

TITLE 46—SHIPPING
Revised section

2101(22)
2101(23)
2101(24)
2101(25)
2101(26)
2101(27)
2101(28)
2101(29)
2101(30)
2101(31)
2101(32)
2101(33)
2101(34)

........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................

2101(35)
2101(36)
2101(37)
2101(38)
2101(39)
2101(40)
2101(41)
2101(42)
2101(43)
2101(44)
2101(45)

........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................

2101(46) ........................................

Source section (U.S. Code)
46:391(c)
46:391a(2)(O)
46:391a(2)(G)
46:1452(1)(A), (B)
46:1452(7)
46:390(f)
46:390(h)
46:390(i)
46:390(g)
46:441(2)
46:395(e)
46:367
33:151
46:216(b)
46:239a(b)
46:390(d)
46:391a(2)(I)
46:405(b)(1)(A)
46:481(a)
46:672(a)
46:1452(9)
46:390(b)
..............................................
46:361
46:391a(2)(M)
46:391a(3)
46:405
46:1452(3)
46:1452(1)(C)
46:526
..............................................
1:3
46:1452(2)
46:391a(2)(L)

Section 2101(1) defines the type of ‘‘associated equipment’’ that is involved in the use of recreational boats
that are subject to Federal regulatory authority. This
equipment is subject to a number of controls under federally established construction and performance standards. Radio equipment is exempt from these regulatory
controls, since this equipment continues to be regulated by the Federal Communications Commission.
Section 2101(2) defines ‘‘barge’’ as a vessel that is
non-self-propelled and that is often pushed ahead,
towed alongside, or towed astern on a hawser by a towing vessel. It does not include a vessel that is propelled
by sail only.
Section 2101(3) defines ‘‘boundary line’’ for the establishment of jurisdictional parameters for various maritime safety laws. Public Law 96–324, codified at 33
U.S.C. 151, permits the Secretary to establish appropriate identifiable lines dividing inland waters of the
U.S. from the high seas for the purpose of determining
the applicability of these laws. These laws will now be
included within subtitle II of title 46—Shipping. These
lines may not be located more than twelve nautical
miles seaward of the baseline from which the territorial sea is measured and may differ in position for the
purposes of different parts or sections of subtitle II.
Section 2101(4) defines ‘‘Coast Guard’’.
Section 2101(5) provides that wherever the term
‘‘commercial service’’ is used it is to include all vessels
except those that are primarily used for combatant
purposes. This is to make sure that vessels that are engaged in the transportation of goods or individuals are
subject to the applicable maritime and environmental
safety laws, even if they are sovereign controlled vessels.
Section 2101(6) defines ‘‘consular officer’’ as one who
has authority to issue visas. Traditionally this person
is knowledgeable and familiar with the maritime safety
and seamen’s welfare laws.
Section 2101(7) defines ‘‘crude oil’’ because certain
equipment requirements like inert gas systems, segregated ballast tanks, crude oil washing systems or
special ballast arrangements are applicable only to
tank vessels that carry crude oil. Crude oil is still included within the definition of ‘‘hazardous material’’
and ‘‘oil’’.
Section 2101(8) defines a ‘‘crude oil tanker’’ as one engaged in carrying crude oil. The definition does not include a tank barge since a tanker is defined as a selfpropelled tank vessel. See also 2101(38).
Section 2101(9) makes it clear that the term ‘‘discharge’’ when referring to a substance that emanates

Page 22

from a vessel and is related to the marine environmental laws concerning pollution by oil or hazardous
substances.
Section 2101(10) defines a ‘‘documented vessel’’ as any
vessel of the United States that has been issued a certificate of documentation that might include a register, enrollment, license, or enrollment and license for
various trades.
Section 2101(11) lists what is included in the term
‘‘fisheries’’ for the purpose of documentation of vessels
and is intended to be all-inclusive of the numerous
types of fishing activities.
Section 2101(12) defines ‘‘foreign vessel’’ as any foreign flag or foreign operated vessel that is operated
under the jurisdiction or authority of a government
other than the United States.
Section 2101(13) defines a ‘‘freight vessel’’ as a motor
vessel or any vessel propelled by diesel or other internal combustion engines and that carries freight for
hire.
Section 2101(14) defines ‘‘hazardous materials’’ as a
broad range of materials that are not only flammable
or combustible but are also designated under related
maritime safety and environmental laws.
Section 2101(15) defines ‘‘marine environment’’ as an
all-inclusive term that was developed to cover land and
water areas that could be affected by pollution from all
vessels and not only tank vessels.
Section 2101(16) defines ‘‘motor vessel’’ as a vessel
propelled by machinery other than steam to make it
clear that these vessels are not steam vessels.
Section 2101(17) defines ‘‘nautical school vessel’’ as a
vessel that can be a privately owned and operated as
well as a publicly owned and operated school vessel.
Section 2101(18) defines ‘‘oceanographic research vessel’’ as a vessel employed in oceanography or limnology
research or instruction. It is defined because this type
of vessel, while not inspected and certified as such, is
subject to a number of special statutory and regulatory
requirements.
Section 2101(19) defines ‘‘offshore supply vessel’’ as a
class of vessel that is limited by tonnage and its employment in the mineral and oil industry and while so
employed it is not a small passenger vessel.
Section 2101(20) defines ‘‘oil’’ to include oil of any
type, in any form, or in any mixture. This is the definition that originated with marine environment and pollution laws and continues the definition that was
adopted by port and tanker safety laws.
Section 2101(21) defines the term ‘‘passengers’’ in relation to various types of vessels. Due to the complexity of existing laws with respect to the definitions of
‘‘passenger’’ on various categories of vessels and the
need to not make any changes of a substantive nature
that could be construed as controversial, four definitions of ‘‘passenger’’ have been included.
Section 2101(22) defines ‘‘passenger vessel’’ as one
that is at least 100 gross tons and carries at least one
passenger for hire.
Section 2101(23) defines ‘‘product carrier’’ as a tanker
that is engaged in carrying oil. This definition when
read with the definition of tanker means that it is a
self-propelled vessel. A tank barge carrying oil products is a tank vessel but is not subject to the special
standards or requirements for a product carrier.
Section 2101(24) defines a ‘‘public vessel’’ as a governmental vessel that is not in commercial service. It
should be noted that a sovereign-controlled foreign-flag
vessel that is engaged in commercial service is not a
public vessel and is subject to maritime safety and environment laws.
Section 2101(25) defines a ‘‘recreational vessel’’ as a
class of vessel whose primary purpose is for pleasure.
These vessels while not subject to inspection are subject to certain requirements of law to improve boating
safety.
Section 2101(26) defines a ‘‘recreational vessel manufacturer’’ as one that is involved with not only the recreational vessels themselves but also with their components or associated equipment.

Page 23

TITLE 46—SHIPPING

Section 2101(27), (28), (29), and (30) provides a number
of definitions that define the type of instruction, instructor, student, and vessel that is involved in the
teaching of sailing.
Section 2101(31) defines ‘‘scientific personnel’’ as individuals engaged in oceanography or limnology because
they are specially treated under various maritime safety requirements.
Section 2101(32) defines a ‘‘seagoing barge’’ as a vessel
that is at least 100 gross tons making voyages to sea beyond the boundary line.
Section 2101(33) defines a ‘‘seagoing motor vessel’’ as
a vessel that must be a motor vessel, as defined in
2101(15), of at least 300 gross tons making voyages to
sea beyond the boundary line.
Section 2101(34) defines ‘‘Secretary’’ so that maritime
safety and seamen’s welfare jurisdiction remains within the Coast Guard at all times.
Section 2101(35) defines ‘‘small passenger vessel’’ as
one that is less than 100 gross tons carrying more than
six passengers as defined in section 2101(21).
Section 2101(36) defines ‘‘State’’ as a State, territory
or possession of the United States and is used to establish jurisdictional limits for the application of the various maritime safety and environmental safety laws of
this subtitle. This definition is further limited by definitions in section 2102 that relate to recreational boating safety and facility improvement programs.
Section 2101(37) defines a ‘‘steam vessel’’ as a vessel
propelled by steam. However, steam vessels of not more
than 40 feet that are used exclusively for pleasure are
not included.
Section 2101(38) defines ‘‘tanker’’ as a self-propelled
tank vessel that has been constructed or primarily
adapted to carry oil or hazardous material in bulk in
the cargo spaces. This vessel is a subclass of tank vessel, which is defined in section 2101(39). This subclass
definition is necessary because certain statutory minimum requirements that are consistent with internationally accepted standards are solely applicable to
these vessels.
Section 2101(39) defines a ‘‘tank vessel’’ as a vessel
carrying oil or hazardous materials in bulk or residue
including a tanker as defined in section 2101(38).
Section 2101(40) defines ‘‘towing vessel’’ as a vessel in
commercial service that pushes, pulls, or tows alongside and includes what is traditionally known as a tug.
Section 2101(41) defines ‘‘undocumented’’ which, in
part, facilitates the classification of vessels that may
be numbered by the proper issuing authority in a State.
Section 2101(42) defines an ‘‘uninspected passenger
vessel’’ as a vessel carrying six or less passengers.
Section 2101(43) defines an ‘‘uninspected vessel’’ as a
vessel not subject to inspection and certification by the
Coast Guard under section 3301. Recreational vessels
and inland towing vessels are typical uninspected vessels.
Section 2101(44) defines ‘‘United States’’ to establish
geographical boundaries for the applicability of the
various maritime safety and environmental safety laws
of this subtitle. This definition is further limited by
definitions in section 2102 that relate to recreational
boating safety and facility improvement programs.
Section 2101(45) makes it clear that ‘‘vessel’’ as used
in this subtitle has the same meaning as is provided in
section 3 of title 1, of the U.S.C.
Section 2101(46) defines ‘‘vessel of the United States’’
as a vessel that is documented or numbered under the
laws of the United States. A documented vessel and
those vessels that are numbered by a State or Federal
authority are afforded the protection of the laws of the
United States.
REFERENCES IN TEXT
Presidential Proclamation No. 5928, referred to in
par. (17a), is set out under section 1331 of Title 43, Public Lands.
AMENDMENTS
2010—Par. (1)(B). Pub. L. 111–281, § 618, as amended by
Pub. L. 111–330, inserted ‘‘with the exception of emer-

§ 2101

gency locator beacons for recreational vessels operating beyond 3 nautical miles from the baselines from
which the territorial sea of the United States is measured or beyond 3 nautical miles from the coastline of
the Great Lakes,’’ before ‘‘does not include’’.
Par. (19). Pub. L. 111–281, § 617(a)(1)(A), struck out ‘‘of
more than 15 gross tons but less than 500 gross tons as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘means a motor vessel’’.
2006—Pars. (2) to (3a). Pub. L. 109–304, § 15(2)(A),
struck out pars. (2), (3), and (3a), which defined
‘‘barge’’, ‘‘Boundary Line’’, and ‘‘citizen of the United
States’’, respectively. See sections 102, 103, and 104 of
this title.
Par. (6). Pub. L. 109–304, § 15(2)(A), struck out par. (6)
which read as follows: ‘‘ ‘consular officer’ means an officer or employee of the United States Government designated under regulations to grant visas.’’ See section
105 of this title.
Par. (8a). Pub. L. 109–304, § 15(2)(B), inserted ‘‘Prevention’’ after ‘‘Abuse’’.
Pars. (10), (10a). Pub. L. 109–304, § 15(2)(A), struck out
pars. (10) and (10a) which defined ‘‘documented vessel’’
and ‘‘Exclusive Economic Zone’’, respectively. See sections 106 and 107 of this title.
Par. (10b). Pub. L. 109–241, § 301(a), added par. (10b).
Par. (12). Pub. L. 109–304, § 15(2)(A), struck out par.
(12) which read as follows: ‘‘ ‘foreign vessel’ means a
vessel of foreign registry or operated under the authority of a country except the United States.’’ See section
110 of this title.
Par. (17b). Pub. L. 109–304, § 15(2)(A), struck out par.
(17b) which read as follows: ‘‘ ‘numbered vessel’ means
a vessel for which a number has been issued under
chapter 123 of this title.’’ See section 111 of this title.
Par. (18). Pub. L. 109–304, § 15(2)(C), struck out ‘‘those’’
after ‘‘including’’.
Par. (22)(D). Pub. L. 109–241, § 301(b), added subpar.
(D).
Par. (26a). Pub. L. 109–241, § 312(b), added par. (26a).
Par. (34). Pub. L. 109–304, § 15(2)(D), struck out
‘‘, except in part H,’’ before ‘‘means’’ and substituted
‘‘Secretary of’’ for ‘‘head of’’.
Par. (35)(E). Pub. L. 109–241, § 301(c), added subpar. (E).
Par. (36). Pub. L. 109–304, § 15(2)(A), struck out par.
(36) which read as follows: ‘‘ ‘State’ means a State of
the United States, Guam, Puerto Rico, the Virgin Islands, American Samoa, the District of Columbia, the
Northern Mariana Islands, and any other territory or
possession of the United States.’’ See section 112 of this
title.
Par. (41). Pub. L. 109–304, § 15(2)(A), struck out par.
(41) which read as follows: ‘‘ ‘undocumented’ means not
having and not required to have a document issued
under chapter 121 of this title.’’ See section 113 of this
title.
Pars. (44) to (46). Pub. L. 109–304, § 15(2)(A), struck out
pars. (44) to (46), which defined ‘‘United States’’, ‘‘vessel’’, and ‘‘vessel of the United States’’, respectively.
See sections 114, 115, and 116 of this title.
2002—Par. (17). Pub. L. 107–217 substituted ‘‘section
558 of title 40’’ for ‘‘section 13 of the Coast Guard Authorization Act of 1986’’.
Par. (35). Pub. L. 107–295, § 419(a), inserted ‘‘a wing-inground craft, regardless of tonnage, carrying at least
one passenger for hire, and’’ after ‘‘ ‘small passenger
vessel’ means’’ in introductory provisions.
Par. (48). Pub. L. 107–295, § 419(b), added par. (48).
1998—Pars. (17a), (17b). Pub. L. 105–383 added par. (17a)
and redesignated former par. (17a) as (17b).
1996—Par. (13). Pub. L. 104–324, § 709(1), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘15 gross tons’’.
Par. (13a). Pub. L. 104–324, § 709(2), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as

§ 2101

TITLE 46—SHIPPING

prescribed by the Secretary under section 14104 of this
title’’ after ‘‘3,500 gross tons’’.
Par. (19). Pub. L. 104–324, § 709(3), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘500 gross tons’’.
Par. (20a). Pub. L. 104–324, § 1104(a)(2), added par. (20a).
Former par. (20a) redesignated (20b).
Par. (20b). Pub. L. 104–324, § 1104(a)(1), redesignated
par. (20a) as (20b).
Par. (22). Pub. L. 104–324, § 709(4), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’.
Par. (30)(A). Pub. L. 104–324, § 709(5), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘500 gross tons’’.
Par. (32). Pub. L. 104–324, § 709(6), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’.
Par. (33). Pub. L. 104–324, § 709(7), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘300 gross tons’’.
Par. (35). Pub. L. 104–324, § 709(8), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’.
Par. (42). Pub. L. 104–324, § 709(9), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’ in subpars. (A) and (B).
1994—Par. (14)(C). Pub. L. 103–272 substituted ‘‘section
5103(a) of title 49’’ for ‘‘section 104 of the Hazardous Materials Transportation Act (49 App. U.S.C. 1803)’’.
1993—Par. (5a). Pub. L. 103–206, § 507, added par. (5a).
Par. (19). Pub. L. 103–206, § 508, inserted ‘‘individuals
in addition to the crew,’’ after ‘‘supplies,’’ and struck
out ‘‘and is not a small passenger vessel’’ after ‘‘resources’’.
Par. (21). Pub. L. 103–206, § 502, amended par. (21) generally, substituting subpars. (A) to (D) defining ‘‘passenger’’ for former subpars. (A) to (F) defining ‘‘passenger’’.
Par. (21a). Pub. L. 103–206, § 506, added par. (21a).
Par. (22). Pub. L. 103–206, § 503, amended par. (22) generally. Prior to amendment, par. (22) read as follows:
‘‘ ‘passenger vessel’ means a vessel of at least 100 gross
tons carrying at least one passenger for hire.’’
Par. (30)(B). Pub. L. 103–206, § 509, substituted ‘‘more
than 6’’ for ‘‘at least 6’’.
Par. (35). Pub. L. 103–206, § 504, amended par. (35) generally. Prior to amendment, par. (35) read as follows:
‘‘ ‘small passenger vessel’ means a vessel of less than
100 gross tons carrying more than 6 passengers (as defined in clause (21)(B) and (C) of this section).’’
Par. (37a). Pub. L. 103–206, § 510, added par. (37a).
Par. (42). Pub. L. 103–206, § 505, amended par. (42) generally. Prior to amendment, par. (42) read as follows:
‘‘ ‘uninspected passenger vessel’ means an uninspected
vessel carrying not more than 6 passengers.’’
1992—Par. (13a). Pub. L. 102–587 added par. (13a).
1990—Par. (8a). Pub. L. 101–380 added par. (8a).
Par. (14)(C). Pub. L. 101–595 substituted ‘‘(49 App.
U.S.C. 1803)’’ for ‘‘(49 U.S.C. 1803)’’.
1989—Par. (17a). Pub. L. 101–225 added par. (17a).
1988—Par. (10a). Pub. L. 100–239 added par. (10a).
Par. (14a). Pub. L. 100–424 added par. (14a).
Par. (34). Pub. L. 100–710, § 104(a)(1), inserted ‘‘, except
in part H,’’ before ‘‘means’’.
Par. (46). Pub. L. 100–710, § 104(a)(2), inserted ‘‘or titled
under the law of a State’’ before period at end.

Page 24

1986—Par. (11b). Pub. L. 99–640, § 10(b)(1), inserted
‘‘freezing,’’.
Par. (14)(C). Pub. L. 99–307, § 1(1), substituted ‘‘Materials’’ for ‘‘Material’’.
Par. (15a). Pub. L. 99–640, § 11(a), added par. (15a).
Par. (17). Pub. L. 99–640, § 13(d), inserted ‘‘or an educational institution under section 13 of the Coast Guard
Authorization Act of 1986’’.
Par. (20a). Pub. L. 99–509, § 5102(b)(1)(A), added par.
(20a).
Par. (21)(A)(ii). Pub. L. 99–307, § 1(2)(A), inserted ‘‘or
other individual engaged in the business of the vessel
who has not contributed consideration for carriage on
board the vessel’’ after ‘‘crewmember’’.
Par. (21)(B). Pub. L. 99–307, § 1(2)(D), struck out ‘‘or a
sailing school vessel,’’ after ‘‘passenger vessel’’.
Par. (21)(B)(v) to (vii). Pub. L. 99–307, § 1(2)(B), added
cls. (v) and (vi) and struck out former cls. (v) to (vii)
which read as follows:
‘‘(v) a guest on board a vessel that is being operated
only for pleasure, or a guest on board a sailing school
vessel, who has not contributed consideration for carriage on board;
‘‘(vi) an individual on board a towing vessel of at
least 50 gross tons who has not contributed consideration for carriage on board; or
‘‘(vii) a sailing school instructor or sailing school student.’’
Par. (21)(F). Pub. L. 99–307, § 1(2)(C), added subpar. (F).
Par. (30)(D). Pub. L. 99–514 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’.
Par. (47). Pub. L. 99–509, § 5102(b)(1)(B), added par. (47).
1984—Par. (3a). Pub. L. 98–454 added par. (3a).
Par. (11). Pub. L. 98–364, § 402(1)(A), substituted ‘‘ ‘fish’
means finfish, mollusks, crustaceans, and all other
forms of marine animal and plant lift, except marine
mammals and birds’’ for ‘‘ ‘fisheries’ includes planting,
cultivating, catching, taking, or harvesting fish, shellfish, marine animals, pearls, shells, or marine vegetation at a place in the fishery conservation zone established by section 101 of the Magnuson Fishery Conservation and Management Act of 1976 (16 U.S.C. 1811)’’,
which is now covered in section 12101 of this title.
Pars. (11a) to (11c). Pub. L. 98–364, § 402(1)(B), added
pars. (11a) to (11c).
Par. (21)(B). Pub. L. 98–557, § 34(a)(1), inserted reference to a sailing school vessel in provisions preceding
cl. (i).
Par. (21)(E). Pub. L. 98–364, § 402(1)(C), added subpar.
(E).
Par. (27). Pub. L. 98–557, § 34(a)(2), designated existing
provisions as subpar. (A) and added subpar. (B).
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–330, § 1, Dec. 22, 2010, 124 Stat. 3569, provided that the amendment made by section 1(9) is effective with the enactment of Pub. L. 111–281.
EFFECTIVE DATE OF 1992 AMENDMENT
Pub. L. 102–587, title V, § 5208(c), (d), Nov. 4, 1992, 106
Stat. 5076, provided that:
‘‘(c) For Great Lakes barges placed in operation after
the date of enactment of this Act [Nov. 4, 1992], the
amendments made by this section [amending this section and section 3301 of this title] take effect on the
date of enactment of this Act.
‘‘(d)(1) For Great Lakes barges in operation on the
date of enactment of this Act, the amendments made
by this section take effect one year after the date of enactment of this Act.
‘‘(2) The Secretary of Transportation may impose
reasonable interim requirements to assure safe operation of the barges affected by paragraph (1).’’
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

Page 25

§ 2102

TITLE 46—SHIPPING
EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100–710 effective Jan. 1, 1989,
with certain exceptions and qualifications, see section
107 of Pub. L. 100–710, set out as an Effective Date note
under section 31301 of this title.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
FISHING AND FISH TENDER VESSELS
Pub. L. 103–206, title III, § 321, Dec. 20, 1993, 107 Stat.
2427, provided that:
‘‘(a) In this section, ‘fish tender vessel’, ‘fishing vessel’, and ‘tank vessel’ have the meanings given those
terms under section 2101 of title 46, United States Code.
‘‘(b) A fishing vessel or fish tender vessel of not more
than 750 gross tons, when engaged only in the fishing
industry, shall not be deemed to be a tank vessel for
the purposes of any law.
‘‘(c)(1) This section does not affect the authority of
the Secretary of Transportation under chapter 33 of
title 46, United States Code, to regulate the operation
of the vessels listed in subsection (b) to ensure the safe
carriage of oil and hazardous substances.
‘‘(2) This section does not affect the requirement for
fish tender vessels engaged in the Aleutian trade to
comply with chapters 33, 45, 51, 81, and 87 of title 46,
United States Code, as provided in the Aleutian Trade
Act of 1990 (Public Law 101–595) [see Short Title of 1990
Amendment note set out under section 101 of this
title].’’
APPLICABILITY DATE FOR REVISED REGULATIONS
Pub. L. 103–206, title V, § 513, Dec. 20, 1993, 107 Stat.
2443, provided that:
‘‘(a) APPLICABILITY DATE FOR CERTAIN CHARTERED
VESSELS.—Revised regulations governing small passenger vessels and passenger vessels (as the definitions
of those terms in section 2101 of title 46, United States
Code, are amended by this Act) shall not, before the
date that is 6 months after the date of enactment of
this Act [Dec. 20, 1993], apply to such vessels when chartered with no crew provided.
‘‘(b) EXTENSION OF PERIOD.—The Secretary of the department in which the Coast Guard is operating shall
extend for up to 30 additional months or until issuance
of a certificate of inspection, whichever occurs first,
the period of inapplicability specified in subsection (a)
if the owner of the vessel concerned carries out the provisions of subsection (c) to the satisfaction of the Secretary.
‘‘(c) CONDITIONS FOR EXTENSION.—To receive an extension authorized by subsection (b), the owner of the vessel shall—
‘‘(1) make application for inspection with the Coast
Guard within 6 months after the date of enactment of
this Act [Dec. 20, 1993];
‘‘(2) make the vessel available for examination by
the Coast Guard prior to the carriage of passengers;
‘‘(3)(A) correct especially any hazardous conditions
involving the vessel’s structure, electrical system,
and machinery installation, such as (i) grossly inadequate, missing, unsound, or severely deteriorated
frames or major structural members; (ii) wiring systems or electrical appliances without proper grounding or overcurrent protection; and (iii) significant
fuel or exhaust system leaks;
‘‘(B) equip the vessel with lifesaving and fire fighting equipment, or the portable equivalent, required
for the route and number of persons carried; and
‘‘(C) verify through stability tests, calculations, or
other practical means (which may include a history

of safe operations) that the vessel’s stability is satisfactory for the size, route, and number of passengers;
and
‘‘(4) develop a work plan approved by the Coast
Guard to complete in a good faith effort all requirements necessary for issuance of a certificate of inspection as soon as practicable.
‘‘(d) OPERATION OF VESSEL DURING EXTENSION PERIOD.—The owner of a vessel receiving an extension
under this section shall operate the vessel under the
conditions of route, service, number of passengers,
manning, and equipment as may be prescribed by the
Coast Guard for the extension period.’’
TANK VESSEL DEFINITION CLARIFICATION
Pub. L. 102–587, title V, § 5209, Nov. 4, 1992, 106 Stat.
5076, as amended by Pub. L. 105–383, title IV, § 422, Nov.
13, 1998, 112 Stat. 3439; Pub. L. 111–281, title VI,
§ 617(a)(1)(B), Oct. 15, 2010, 124 Stat. 2972, provided that:
‘‘(a) In this section, ‘offshore supply vessel’, ‘fish tender vessel’, ‘fishing vessel’, and ‘tank vessel’ have the
meanings given those terms under section 2101 of title
46, United States Code.
‘‘(b) The following vessels are deemed not to be a
tank vessel for the purposes of any law:
‘‘(1) An offshore supply vessel of less than 500 gross
tons as measured under section 14502, or an alternate
tonnage measured under section 14302 of such title as
prescribed by the Secretary under section 14104 of
such title.
‘‘(2) A fishing or fish tender vessel of not more than
750 gross tons that transfers without charge to a fishing vessel owned by the same person.
‘‘(3) A vessel—
‘‘(A) configured, outfitted, and operated primarily
for dredging operations; and
‘‘(B) engaged in dredging operations which transfers fuel to other vessels engaged in the same dredging operations without charge.
‘‘(c)(1) This section does not affect the authority of
the Secretary of Transportation under chapter 33 of
title 46, United States Code, to regulate the operation
of the vessels listed in subsection (b) to ensure the safe
carriage of oil and hazardous substances.
‘‘(2) This section does not affect the requirement for
fish tender vessels engaged in the Aleutian trade to
comply with chapters 33, 45, 51, 81, and 87 of title 46,
United States Code, as provided in the Aleutian Trade
Act of 1990 ([title VI of] Public Law 101–595) [see Short
Title of 1990 Amendment note set out under section 101
of this title].
‘‘(d) Current regulations governing the vessels in subsection (b) remain in effect.’’

§ 2102. Limited definitions
In chapters 33, 45, 51, 81, and 87 of this title,
‘‘Aleutian trade’’ means the transportation of
cargo (including fishery related products) for
hire on board a fish tender vessel to or from a
place in Alaska west of 153 degrees west longitude and east of 172 degrees east longitude, if
that place receives weekly common carrier service by water, to or from a place in the United
States (except a place in Alaska).
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 505; Pub. L.
98–369, div. A, title X, § 1011(a), July 18, 1984, 98
Stat. 1013; Pub. L. 99–509, title V, § 5102(b)(2), Oct.
21, 1986, 100 Stat. 1926; Pub. L. 101–595, title VI,
§ 602(a), Nov. 16, 1990, 104 Stat. 2990; Pub. L.
109–304, §§ 15(3), 16(a), Oct. 6, 2006, 120 Stat. 1702,
1705.)
HISTORICAL AND REVISION NOTES
Revised section
2102 ..............................................

Source section (U.S. Code)
46:1452(10)–(14)

§ 2103

TITLE 46—SHIPPING

Section 2102 contains a number of definitions that are
limited to recreational vessels in Chapter 43 of Part B
and the numbering of these vessels in Chapter 123 of
Part H.
AMENDMENTS
2006—Pub. L. 109–304 redesignated subsec. (b) as entire
section, substituted ‘‘west’’ for ‘‘West’’ and ‘‘east’’ for
‘‘East’’, and struck out subsec. (a) which defined ‘‘eligible State’’, ‘‘State’’, ‘‘United States’’, and ‘‘State recreational boating safety program’’ in chapters 37, 43, 51,
and 123 of this title and part I of this subtitle.
1990—Pub. L. 101–595 designated existing provisions as
subsec. (a) and added subsec. (b).
1986—Pub. L. 99–509 inserted reference to chapters 37
and 51.
1984—Par. (1). Pub. L. 98–369, § 1011(a)(1), struck out
‘‘and facilities improvement’’ after ‘‘recreational boating safety’’.
Par. (3). Pub. L. 98–369, § 1011(a)(2), (3), redesignated
par. (5) as (3) and struck out former par. (3) which defined a State recreational boating facilities improvement program.
Par. (4). Pub. L. 98–369, § 1011(a)(2), struck out par. (4)
which defined State recreational boating safety and facilities improvement program.
Par. (5). Pub. L. 98–369, § 1011(a)(3), redesignated par.
(5) as (3).

Page 26

§ 2104. Delegation
(a) The Secretary may delegate the duties and
powers conferred by this subtitle to any officer,
employee, or member of the Coast Guard, and
may provide for the subdelegation of those duties and powers.
(b) When this subtitle authorizes an officer or
employee of the Customs Service to act in place
of a Coast Guard official, the Secretary may designate that officer or employee subject to the
approval of the Secretary of the Treasury.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 506.)
HISTORICAL AND REVISION NOTES
Revised section
2104 ..............................................

Source section (U.S. Code)
46:65v(1)
46:382b
46:416
46:543
46:689

Section 2104 provides the Secretary with authority to
delegate duties and powers to others. It also contains
the authority to designate an officer or employee of the
United States Customs Service to act in the place of a
Coast Guard official.

EFFECTIVE DATE OF 1984 AMENDMENT

TRANSFER OF FUNCTIONS

Amendment by Pub. L. 98–369 effective Oct. 1, 1984, to
apply with respect to fiscal years beginning after Sept.
30, 1984, see section 1013 of Pub. L. 98–369, set out as a
note under section 13101 of this title.

For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the
Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.

§ 2103. Superintendence of the merchant marine
The Secretary has general superintendence
over the merchant marine of the United States
and of merchant marine personnel insofar as the
enforcement of this subtitle is concerned and insofar as those vessels and personnel are not subject, under other law, to the supervision of another official of the United States Government.
In the interests of marine safety and seamen’s
welfare, the Secretary shall enforce this subtitle
and shall carry out correctly and uniformly administer this subtitle. The Secretary may prescribe regulations to carry out the provisions of
this subtitle.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 506; Pub. L.
99–307, § 9, May 19, 1986, 100 Stat. 447.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

2103 ..............................................

46:2
46:372
46:689

Section 2103 provides the Secretary with the authority to superintend the merchant marine and those involved personnel insofar as the vessels and personnel
are not subject, under other laws, to the supervision of
another official. The Secretary has the duty to enforce
the laws with respect to vessels and seamen and to
carry out correctly and uniformly these laws and regulations. The term ‘‘superintendence’’ is used to indicate
the Secretary’s broad responsibility for overseeing
maritime safety and seamen’s welfare, including employment, shipping, navigation, and protection of the
marine environment.
AMENDMENTS
1986—Pub. L. 99–307 substituted ‘‘subtitle. The Secretary may prescribe regulations to carry out the provisions of this subtitle’’ for ‘‘subtitle and regulations
prescribed under this subtitle’’.

§ 2105. Report
The Secretary shall provide for the investigation of the operation of this subtitle and of all
laws related to marine safety, and shall require
that a report be made to the Secretary annually
about those matters that may require improvement or amendment.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 506.)
HISTORICAL AND REVISION NOTES
Revised section
2105 ..............................................

Source section (U.S. Code)
46:4

Section 2105 requires the Secretary to investigate the
operation of this subtitle and all laws related to maritime safety and requires appropriate reports to ensure
that the Secretary is attentive to all the shipping laws
under the Secretary’s superintendence.

§ 2106. Liability in rem
When a vessel is made liable in rem under this
subtitle, the vessel may be libeled and proceeded
against in the district court of the United States
for any district in which the vessel is found.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 506; Pub. L.
109–304, § 15(4), Oct. 6, 2006, 120 Stat. 1702.)

Page 27

§ 2110

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised section

Source section (U.S. Code)

2106 ..............................................

46:170(14)
46:216e(e)
46:390d
46:391a(14)(C)
46:436
46:462
46:481(c)
46:497
46:526o
46:672(j)
46:1484(b)

Section 2106 provides that when a vessel is made liable in rem the vessel may be libeled and proceeded
against in a United States district court.

procedural regulations for assessing civil penalties ensure that the essential elements of due process, notice,
and opportunity to be heard, are provided to alleged
violators (see 33 CFR Subpart 1.07). The more rigid and
time-consuming procedures applicable to APA adjudications are unwarranted in the case of Coast Guard
civil penalty assessment procedures and would seriously hamper the orderly enforcement of these administrative penalties.
AMENDMENTS
2006—Pub. L. 109–241 substituted ‘‘this subtitle or subtitle VII’’ for ‘‘this subtitle’’ in two places in subsec. (a)
and in one place in subsec. (b).

AMENDMENTS

[§ 2108. Repealed. Pub. L. 109–304, § 15(5), Oct. 6,
2006, 120 Stat. 1702]

2006—Pub. L. 109–304 substituted ‘‘the district court of
the United States for any district’’ for ‘‘a district court
of the United States’’.

Section, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 507, related to refund of penalties unlawfully, improperly, or excessively imposed. See section 504 of this title.

§ 2107. Civil penalty procedures

§ 2109. Public vessels

(a) After notice and an opportunity for a hearing, a person found by the Secretary to have violated this subtitle or subtitle VII or a regulation
prescribed under this subtitle or subtitle VII for
which a civil penalty is provided, is liable to the
United States Government for the civil penalty
provided. The amount of the civil penalty shall
be assessed by the Secretary by written notice.
In determining the amount of the penalty, the
Secretary shall consider the nature, circumstances, extent, and gravity of the prohibited
acts committed and, with respect to the violator, the degree of culpability, any history of
prior offenses, ability to pay, and other matters
that justice requires.
(b) The Secretary may compromise, modify, or
remit, with or without consideration, a civil
penalty under this subtitle or subtitle VII until
the assessment is referred to the Attorney General.
(c) If a person fails to pay an assessment of a
civil penalty after it has become final, the Secretary may refer the matter to the Attorney
General for collection in an appropriate district
court of the United States.

Except as otherwise provided, this subtitle
does not apply to a public vessel of the United
States. However, this subtitle does apply to a
vessel (except a Saint Lawrence Seaway Development Corporation vessel) owned or operated
by the Department of Transportation or by any
corporation organized or controlled by the Department.

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 506; Pub. L.
109–241, title III, § 306(b), July 11, 2006, 120 Stat.
528.)
HISTORICAL AND REVISION NOTES
Revised section
2107 ..............................................

Source section (U.S. Code)
33:364
46:7
46:65u
46:216e(d)
46:391a(14)
46:526o
46:526p
46:1484(c)

Section 2107 provides for standard procedures for the
handling of civil penalties for infractions of law or regulation. Some changes were made to increase some antiquated and inadequate penalties.
The assessment of civil penalties under this section
should not require an ‘‘on the record’’ hearing within
the meaning of the Administrative Procedures Act
(APA). It is intended that these civil penalties be assessed in a fair manner. However, the Committee recognizes that statutes passed in the last decade have involved the Coast Guard in tens of thousands of civil
penalty enforcement cases and that it is necessary that
the penalties be assessed efficiently. The Coast Guard’s

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 507; Pub. L.
99–509, title V, § 5102(b)(3), Oct. 21, 1986, 100 Stat.
1927; Pub. L. 109–241, title IX, § 902(e)(1), July 11,
2006, 120 Stat. 567; Pub. L. 111–281, title IX,
§ 903(a)(5)(A), Oct. 15, 2010, 124 Stat. 3010.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

2109 ..............................................

46:362
46:363
46:391a(4)

Section 2109 exempts public vessels from the applicability of the maritime safety and seamen’s welfare laws
of this subtitle although some public vessels are inspected under interagency voluntary agreements.
AMENDMENTS
2010—Pub. L. 111–281 amended directory language of
Pub. L. 109–241, § 902(e)(1). See 2006 Amendment note
below.
2006—Pub. L. 109–241, § 902(e)(1), as amended by Pub.
L. 111–281, struck out ‘‘a Coast Guard or’’ after ‘‘(except’’.
1986—Pub. L. 99–509 substituted ‘‘Except as otherwise
provided, this’’ for ‘‘This’’.
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–281, title IX, § 903(a), Oct. 15, 2010, 124 Stat.
3010, provided that the amendment by section
903(a)(5)(A) is effective with enactment of Pub. L.
109–241.

§ 2110. Fees
(a)(1) Except as otherwise provided in this
title, the Secretary shall establish a fee or
charge for a service or thing of value provided
by the Secretary under this subtitle, in accordance with section 9701 of title 31.
(2) The Secretary may not establish a fee or
charge under paragraph (1) for inspection or examination of a non-self-propelled tank vessel
under part B of this subtitle that is more than

§ 2110

TITLE 46—SHIPPING

$500 annually. The Secretary may not establish
a fee or charge under paragraph (1) for inspection or examination of a small passenger vessel
under this title that is more than $300 annually
for such vessels under 65 feet in length, or more
than $600 annually for such vessels 65 feet in
length and greater. The Secretary may not establish a fee or charge under paragraph (1) for
inspection or examination under this title for
any publicly-owned ferry.
(3) The Secretary may, by regulation, adjust a
fee or charge collected under this subsection to
accommodate changes in the cost of providing a
specific service or thing of value, but the adjusted fee or charge may not exceed the total
cost of providing the service or thing of value
for which the fee or charge is collected, including the cost of collecting the fee or charge.
(4) The Secretary may not collect a fee or
charge under this subsection that is in conflict
with the international obligations of the United
States.
(5) The Secretary may not collect a fee or
charge under this subsection for any search or
rescue service.
(b)(1) The Secretary shall establish a fee or
charge as provided in paragraph (2) of this subsection, and collect it annually in fiscal years
1993 and 1994, from the owner or operator of each
recreational vessel to which paragraph (2) of
this subsection applies.
(2) The fee or charge established under paragraph (1) of this subsection is as follows:
(A) in fiscal year 1993—
(i) for vessels of more than 21 feet in
length but less than 27 feet, not more than
$35;
(ii) for vessels of at least 27 feet in length
but less than 40 feet, not more than $50; and
(iii) for vessels of at least 40 feet in length,
not more than $100; and
(B) in fiscal year 1994—
(i) for vessels of at least 37 feet in length
but less than 40 feet, not more than $50; and
(ii) for vessels of at least 40 feet in length,
not more than $100.
(3) The fee or charge established under this
subsection applies only to vessels operated on
the navigable waters of the United States where
the Coast Guard has a presence.
(4) The fee or charge established under this
subsection does not apply to a—
(A) public vessel; or
(B) vessel deemed to be a public vessel under
section 827 of title 14.
(5) The Secretary shall provide to each person
who pays a fee or charge under this subsection
a separate document on which appears, in readily discernible print, only the following statement: ‘‘The fee for which this document was
provided was established under the Omnibus
Budget Reconciliation Act of 1990. Persons paying this fee can expect no increase in the quantity, quality, or variety of services the person
receives from the Coast Guard as a result of that
payment.’’
(c) In addition to the collection of fees and
charges established under subsections (a) and
(b), the Secretary may recover appropriate collection and enforcement costs associated with
delinquent payments of the fees and charges.

Page 28

(d)(1) The Secretary may employ any Federal,
State, or local agency or instrumentality, or
any private enterprise or business, to collect a
fee or charge established under this section. A
private enterprise or business selected by the
Secretary to collect fees or charges—
(A) shall be subject to reasonable terms and
conditions agreed to by the Secretary and the
enterprise or business;
(B) shall provide appropriate accounting to
the Secretary; and
(C) may not institute litigation as part of
that collection.
(2) A Federal agency shall account for the
agency’s costs of collecting the fee or charge
under this subsection as a reimbursable expense,
and the costs shall be credited to the account
from which expended.
(e) A person that violates this section by failing to pay a fee or charge established under this
section is liable to the United States Government for a civil penalty of not more than $5,000
for each violation.
(f) When requested by the Secretary, the Secretary of Homeland Security shall deny the
clearance required by section 60105 of this title
to a vessel for which a fee or charge established
under this section has not been paid until the
fee or charge is paid or until a bond is posted for
the payment.
(g) The Secretary may exempt a person from
paying a fee or charge established under this
section if the Secretary determines that it is in
the public interest to do so.
(h) Fees and charges collected by the Secretary under this section shall be deposited in
the general fund of the Treasury as offsetting
receipts of the department in which the Coast
Guard is operating and ascribed to Coast Guard
activities.
(i) The collection of a fee or charge under this
section does not alter or expand the functions,
powers, responsibilities, or liability of the
United States under any law for the performance of services or the provision of a thing of
value for which a fee or charge is collected
under this section.
(j) The Secretary may not establish or collect
a fee or charge for the inspection under part B
of this subtitle of training vessels operated by
State maritime academies.
(k) The Secretary may not plan, implement or
finalize any regulation that would promulgate
any new maritime user fee which was not implemented and collected prior to January 1, 1998,
including a fee or charge for any domestic icebreaking service or any other navigational assistance service. This subsection expires on September 30, 2006.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 507; Pub. L.
99–509, title V, § 5102(b)(4), Oct. 21, 1986, 100 Stat.
1927; Pub. L. 100–710, title I, § 104(a)(3), Nov. 23,
1988, 102 Stat. 4749; Pub. L. 101–508, title X,
§ 10401(a), Nov. 5, 1990, 104 Stat. 1388–397; Pub. L.
102–241, § 53, Dec. 19, 1991, 105 Stat. 2232; Pub. L.
102–582, title V, § 501(a), Nov. 2, 1992, 106 Stat.
4909; Pub. L. 102–587, title V, § 5207, Nov. 4, 1992,
106 Stat. 5075; Pub. L. 104–324, title XI, § 1112,
Oct. 19, 1996, 110 Stat. 3970; Pub. L. 105–383, title
II, § 207, Nov. 13, 1998, 112 Stat. 3416; Pub. L.

Page 29

§ 2111

TITLE 46—SHIPPING

107–295, title III, § 344, Nov. 25, 2002, 116 Stat. 2106;
Pub. L. 109–304, § 15(6), Oct. 6, 2006, 120 Stat. 1702.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

2110 ..............................................

46:331

Section 2110 prevents the assessment of user fees for
certain maritime safety and seamen’s welfare services
unless otherwise provided for by law. These include:
Measurement of tonnage and certifying the same, except that the compensation and necessary travel and
subsistence expenses of the officers so measuring or
certifying such vessels at the request of the owners
thereof at a place other than a port of entry or a customs station shall be paid by such owners; issuing of license or granting of certificate of registry, record, or
enrollment, including all indorsements on the same
and oath; indorsement of change of master; certifying
and receiving manifest, including master’s oath and
permit; granting permit to vessels licensed for the fisheries to touch and trade; granting certificate of payment of tonnage dues; recording bill of sale, mortgage,
hypothecation or conveyance, or the discharge of such
mortgage or hypothecation; furnishing certificate of
title; furnishing the crew list; certificate of protection
to seamen; bill of health; shipping or discharging of
seamen; apprenticing boys to the merchant service; inspecting, examining, and licensing steam vessels, including inspection certificate and copies thereof; and
licensing of master, engineer, pilot, or mate of a vessel.
REFERENCES IN TEXT
The Omnibus Budget Reconciliation Act of 1990, referred to in subsec. (b)(5), is Pub. L. 101–508, Nov. 5, 1990,
104 Stat. 1388. For complete classification of this Act to
the Code, see Tables.
AMENDMENTS
2006—Subsec. (a)(2). Pub. L. 109–304, § 15(6)(A), substituted ‘‘part B of this subtitle’’ for ‘‘part B of this
title’’.
Subsec. (b)(2)(A)(iii). Pub. L. 109–304, § 15(6)(B), substituted ‘‘; and’’ for period at end.
Subsec. (b)(5). Pub. L. 109–304, § 15(6)(C), substituted
‘‘The fee’’ for ‘‘The fees’’.
Subsec. (f). Pub. L. 109–304, § 15(6)(D), substituted
‘‘Secretary of Homeland Security shall deny the clearance required by section 60105 of this title’’ for ‘‘Secretary of the Treasury shall deny the clearance required by section 4197 of the Revised Statutes of the
United States (46 App. U.S.C. 91)’’.
Subsec. (j). Pub. L. 109–304, § 15(6)(E), substituted
‘‘State’’ for ‘‘state’’.
2002—Subsec. (k). Pub. L. 107–295 substituted ‘‘2006’’
for ‘‘2001’’.
1998—Subsec. (k). Pub. L. 105–383 added subsec. (k).
1996—Subsec. (a)(2). Pub. L. 104–324, § 1112, which directed amendment of section 10401(g) of Pub. L. 101–508
by inserting ‘‘The Secretary may not establish a fee or
charge under paragraph (1) for inspection or examination of a small passenger vessel under this title that is
more than $300 annually for such vessels under 65 feet
in length, or more than $600 annually for such vessels
65 feet in length and greater. The Secretary may not
establish a fee or charge under paragraph (1) for inspection or examination under this title for any publiclyowned ferry.’’ after ‘‘annually.’’, was executed by making insertion in subsec. (a)(2) of this section to reflect
the probable intent of Congress, because section
10401(a) of Pub. L. 101–508 amended this section generally, and section 10401 of Pub. L. 101–508 did not contain
a subsec. (g).
1992—Subsec. (b)(1). Pub. L. 102–582, § 501(a)(1), substituted ‘‘1993 and 1994’’ for ‘‘1991, 1992, 1993, 1994, and
1995’’ and ‘‘to which paragraph (2) of this subsection applies’’ for ‘‘that is greater than 16 feet in length’’.
Subsec. (b)(2). Pub. L. 102–582, § 501(a)(2), amended par.
(2) generally. Prior to amendment, par. (2) read as fol-

lows: ‘‘The fee or charge established under paragraph
(1) of this subsection is as follows:
‘‘(A) for vessels greater than 16 feet in length but
less than 20 feet, not more than $25;
‘‘(B) for vessels of at least 20 feet in length but less
than 27 feet, not more than $35;
‘‘(C) for vessels of at least 27 feet in length but less
than 40 feet, not more than $50; and
‘‘(D) for vessels of at least 40 feet in length, not
more than $100.’’
Subsec. (j). Pub. L. 102–587 added subsec. (j).
1991—Subsec. (b)(5). Pub. L. 102–241 added par. (5).
1990—Pub. L. 101–508, as amended by Pub. L. 104–324,
substituted ‘‘Fees’’ for ‘‘Fees prohibited’’ as section
catchline and amended text generally. Prior to amendment, text read as follows: ‘‘Fees may not be charged
or collected by the Secretary for services provided for
in this subtitle related to the engagement and discharge of seamen, the inspection and examination of
vessels under part B of this subtitle, and the licensing
of masters, mates, pilots, and engineers, except when
specifically provided for in this subtitle.’’ See 1996
Amendment note above.
1988—Pub. L. 100–710 substituted ‘‘and the licensing of
masters, mates, pilots, and engineers’’ for ‘‘the licensing of masters, mates, pilots, and engineers, and the
documentation of vessels’’.
1986—Pub. L. 99–509 substituted ‘‘examination of vessels under part B of this subtitle’’ for ‘‘examination of
vessels’’ and struck out ‘‘measurement or’’ before ‘‘documentation’’.
EFFECTIVE DATE OF 1992 AMENDMENT
Pub. L. 102–582, title V, § 501(b), Nov. 2, 1992, 106 Stat.
4910, provided that: ‘‘The amendments made by this
section [amending this section] are effective October 1,
1992.’’
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100–710 effective Jan. 1, 1989,
with certain exceptions and qualifications, see section
107 of Pub. L. 100–710, set out as an Effective Date note
under section 31301 of this title.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
ACCEPTANCE OF EVIDENCE OF PAYMENT OF COAST
GUARD FEES
Pub. L. 102–587, title V, § 5214, Nov. 4, 1992, 106 Stat.
5077, provided that: ‘‘The Secretary of Transportation
may not issue a citation for failure to pay a fee or
charge established under section 2110 of title 46, United
States Code, to an owner or operator of a recreational
vessel who provides reasonable evidence of prior payment of the fee or charge to a Coast Guard boarding officer.’’

§ 2111. Pay for overtime services
(a) The Secretary may prescribe a reasonable
rate of extra pay for overtime services of civilian officers and employees of the Coast Guard
required to remain on duty between 5 p.m. and
8 a.m., or on Sundays or holidays, to perform
services related to—
(1) the inspection of vessels or their equipment;
(2) the engagement and discharge of crews of
vessels;

§ 2112

TITLE 46—SHIPPING

(3) the measurement of vessels; and
(4) the documentation of vessels.
(b) Except for Sundays and holidays, the overtime rate provided under subsection (a) of this
section is one-half day’s additional pay for each
2 hours of overtime (or part of 2 hours of at least
one hour). The total extra pay may be not more
than 2 and one-half days’ pay for any one period
from 5 p.m. to 8 a.m.
(c) The overtime rate provided under subsection (a) of this section for Sundays and holidays is 2 additional days’ pay.
(d) The owner, charterer, managing operator,
agent, master, or individual in charge of the vessel shall pay the amount of the overtime pay
provided under this section to the official designated by regulation. The official shall deposit
the amount paid to the Treasury as miscellaneous receipts. Payment to the officer or employee
entitled to the pay shall be made from the annual appropriations for salaries and expenses of
the Coast Guard.
(e) The overtime pay provided under this section shall be paid if the authorized officers and
employees have been ordered to report for duty
and have reported, even if services requested
were not performed.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 507.)
HISTORICAL AND REVISION NOTES
Revised section
2111 ..............................................

Source section (U.S. Code)
46:382b

Section 2111 provides for the payment of overtime
rates for work performed by civilian officers and employees of the Coast Guard for certain specified activities.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 2112. Authority to change working hours
In a port at which the customary working
hours begin before 8 a.m. or end after 5 p.m., the
Secretary may regulate the working hours of
the officers and employees referred to in section
2111 of this title so that those hours conform to
the prevailing working hours of the port. However—
(1) the total period for which overtime pay
may be required under section 2111 of this title
may not be more than 15 hours between any 2
periods of ordinary working hours on other
than Sundays and holidays;
(2) the length of the working day for the officers and employees involved may not be
changed; and
(3) the rate of overtime pay may not be
changed.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 508.)

Page 30
HISTORICAL AND REVISION NOTES

Revised section
2112 ..............................................

Source section (U.S. Code)
46:382b

Section 2112 provides the Secretary with the authority to regulate the working hours of civilian officers
and employees of the Coast Guard to conform with the
prevailing working hours of a port.

§ 2113. Authority to exempt certain vessels
If the Secretary decides that the application
of a provision of part B, C, F, or G of this subtitle is not necessary in performing the mission
of the vessel engaged in excursions or an oceanographic research vessel, or not necessary for the
safe operation of certain vessels carrying passengers, the Secretary by regulation may—
(1) for a vessel, issue a special permit specifying the conditions of operation and equipment;
(2) exempt an oceanographic research vessel
from that provision under conditions the Secretary may specify;
(3) establish different operating and equipment requirements for vessels defined in section 2101(42)(A) of this title;
(4) establish different structural fire protection, manning, operating, and equipment requirements for vessels of at least 100 gross
tons but less than 300 gross tons as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302 of
this title as prescribed by the Secretary under
section 14104 of this title carrying not more
than 150 passengers on domestic voyages if the
owner of the vessel—
(A) makes application for inspection to the
Coast Guard within 6 months of the date of
enactment of the Passenger Vessel Safety
Act of 1993; and
(B) provides satisfactory documentation
that the vessel was chartered at least once
within the previous 12 months prior to the
date of enactment of that Act; and
(5) establish different structural fire protection, manning, operating, and equipment requirements for former public vessels of the
United States of at least 100 gross tons but
less than 500 gross tons as measured under section 14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title, carrying not more than 150
passengers on domestic voyages, if the owner
of the vessel—
(A) makes application for inspection to the
Coast Guard within 6 months of the date of
enactment of the Passenger Vessel Safety
Act of 1993; and
(B) provides satisfactory documentation
that the vessel was chartered at least once
within the previous 12 months prior to the
date of enactment of that Act.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 508; Pub. L.
103–206, title V, § 511(a), Dec. 20, 1993, 107 Stat.
2441; Pub. L. 104–324, title VII, § 710, Oct. 19, 1996,
110 Stat. 3935.)

Page 31

§ 2114

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised section

Source section (U.S. Code)

2113 ..............................................

46:445
46:453

Section 2113 provides the Secretary with the authority to exempt certain vessels from the inspection and
manning requirements of law when vessels are engaged
in excursions or oceanographic research. This is the authority of the issuance of excursion permits when special circumstances justify the waiver of certain maritime safety and seamen’s welfare laws for a short period of time. It also contains flexible exemption authority for regulation of oceanographic research vessels.
REFERENCES IN TEXT
The date of enactment of the Passenger Vessel Safety
Act of 1993, referred to in pars. (4) and (5), is the date
of the enactment of Pub. L. 103–206, which was approved
Dec. 20, 1993.
AMENDMENTS
1996—Par. (4). Pub. L. 104–324, § 710(1), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘less than 300 gross tons’’.
Par. (5). Pub. L. 104–324, § 710(2), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘less than 500 gross tons’’.
1993—Pub. L. 103–206 amended section catchline and
text generally. Prior to amendment, text read as follows: ‘‘If the Secretary decides that the application of
a provision of part B or F of this subtitle is not necessary in performing the mission of a vessel engaged in
excursions or an oceanographic research vessel, the
Secretary by regulation may—
‘‘(1) for an excursion vessel, issue a special permit
specifying the conditions of operation and equipment;
and
‘‘(2) exempt the oceanographic research vessel from
that provision under conditions the Secretary may
specify.’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 2114. Protection of seamen against discrimination
(a)(1) A person may not discharge or in any
manner discriminate against a seaman because—
(A) the seaman in good faith has reported or
is about to report to the Coast Guard or other
appropriate Federal agency or department
that the seaman believes that a violation of a
maritime safety law or regulation prescribed
under that law or regulation has occurred;
(B) the seaman has refused to perform duties
ordered by the seaman’s employer because the
seaman has a reasonable apprehension or expectation that performing such duties would
result in serious injury to the seaman, other
seamen, or the public;

(C) the seaman testified in a proceeding
brought to enforce a maritime safety law or
regulation prescribed under that law;
(D) the seaman notified, or attempted to notify, the vessel owner or the Secretary of a
work-related personal injury or work-related
illness of a seaman;
(E) the seaman cooperated with a safety investigation by the Secretary or the National
Transportation Safety Board;
(F) the seaman furnished information to the
Secretary, the National Transportation Safety
Board, or any other public official as to the
facts relating to any marine casualty resulting in injury or death to an individual or damage to property occurring in connection with
vessel transportation; or
(G) the seaman accurately reported hours of
duty under this part.
(2) The circumstances causing a seaman’s apprehension of serious injury under paragraph
(1)(B) must be of such a nature that a reasonable
person, under similar circumstances, would conclude that there is a real danger of an injury or
serious impairment of health resulting from the
performance of duties as ordered by the seaman’s employer.
(3) To qualify for protection against the seaman’s employer under paragraph (1)(B), the employee must have sought from the employer, and
been unable to obtain, correction of the unsafe
condition.
(b) A seaman alleging discharge or discrimination in violation of subsection (a) of this section, or another person at the seaman’s request,
may file a complaint with respect to such allegation in the same manner as a complaint may
be filed under subsection (b) of section 31105 of
title 49. Such complaint shall be subject to the
procedures, requirements, and rights described
in that section, including with respect to the
right to file an objection, the right of a person
to file for a petition for review under subsection
(c) of that section, and the requirement to bring
a civil action under subsection (d) of that section.
(Added Pub. L. 98–557, § 13(a), Oct. 30, 1984, 98
Stat. 2863; amended Pub. L. 107–295, title IV,
§ 428, Nov. 25, 2002, 116 Stat. 2127; Pub. L. 111–281,
title VI, § 611(a), Oct. 15, 2010, 124 Stat. 2969.)
AMENDMENTS
2010—Subsec. (a)(1)(C) to (G). Pub. L. 111–281,
§ 611(a)(1)–(3), added subpars. (C) to (G).
Subsec. (b). Pub. L. 111–281, § 611(a)(4), amended subsec. (b) generally. Prior to amendment, subsec. (b) read
as follows: ‘‘A seaman discharged or otherwise discriminated against in violation of this section may
bring an action in an appropriate district court of the
United States. In that action, the court may order any
appropriate relief, including—
‘‘(1) restraining violations of this section;
‘‘(2) reinstatement to the seaman’s former position
with back pay;
‘‘(3) an award of costs and reasonable attorney’s
fees to a prevailing plaintiff not exceeding $1,000; and
‘‘(4) an award of costs and reasonable attorney’s
fees to a prevailing employer not exceeding $1,000 if
the court finds that a complaint filed under this section is frivolous or has been brought in bad faith.’’
2002—Subsec. (a). Pub. L. 107–295, § 428(a), amended
subsec. (a) generally. Prior to amendment, subsec. (a)

§ 2115

TITLE 46—SHIPPING

read as follows: ‘‘An owner, charterer, managing operator, agent, master, or individual in charge of a vessel
may not discharge or in any manner discriminate
against a seaman because the seaman in good faith has
reported or is about to report to the Coast Guard that
the seaman believes that a violation of this subtitle, or
a regulation issued under this subtitle, has occurred.’’
Subsec. (b)(3), (4). Pub. L. 107–295, § 428(b), added pars.
(3) and (4).
SAVINGS PROVISION
Pub. L. 111–281, title VI, § 611(b), Oct. 15, 2010, 124 Stat.
2970, provided that: ‘‘This section [amending this section] shall not affect the application of section 2114(b)
of title 46, United States Code, as in effect before the
date of enactment of this Act [Oct. 15, 2010], to an action filed under that section before that date.’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 2115. Civil penalty to enforce alcohol and dangerous drug testing
Any person who fails to implement or conduct,
or who otherwise fails to comply with the requirements prescribed by the Secretary for,
chemical testing for dangerous drugs or for evidence of alcohol use, as prescribed under this
subtitle or a regulation prescribed by the Secretary to carry out the provisions of this subtitle, is liable to the United States Government
for a civil penalty of not more than $5,000 for
each violation. Each day of a continuing violation shall constitute a separate violation.
(Added Pub. L. 104–324, title III, § 303(a), Oct. 19,
1996, 110 Stat. 3917; amended Pub. L. 105–383, title
III, § 304(b), Nov. 13, 1998, 112 Stat. 3419.)
AMENDMENTS
1998—Pub. L. 105–383 substituted ‘‘$5,000’’ for ‘‘$1,000’’.

§ 2116. Marine safety strategy, goals, and performance assessments
(a) LONG-TERM STRATEGY AND GOALS.—In conjunction with existing federally required strategic planning efforts, the Secretary shall develop
a long-term strategy for improving vessel safety
and the safety of individuals on vessels. The
strategy shall include the issuance each year of
an annual plan and schedule for achieving the
following goals:
(1) Reducing the number and rates of marine
casualties.
(2) Improving the consistency and effectiveness of vessel and operator enforcement and
compliance programs.
(3) Identifying and targeting enforcement efforts at high-risk vessels and operators.
(4) Improving research efforts to enhance
and promote vessel and operator safety and
performance.
(b) CONTENTS OF STRATEGY AND ANNUAL
PLANS.—
(1) MEASURABLE GOALS.—The strategy and
annual plans shall include specific numeric or

Page 32

measurable goals designed to achieve the goals
set forth in subsection (a). The purposes of the
numeric or measurable goals are the following:
(A) To increase the number of safety examinations on all high-risk vessels.
(B) To eliminate the backlog of marine
safety-related rulemakings.
(C) To improve the quality and effectiveness of marine safety information databases
by ensuring that all Coast Guard personnel
accurately and effectively report all safety,
casualty, and injury information.
(D) To provide for a sufficient number of
Coast Guard marine safety personnel, and
provide adequate facilities and equipment to
carry out the functions referred to in section
93(c).1
(2) RESOURCE NEEDS.—The strategy and annual plans shall include estimates of—
(A) the funds and staff resources needed to
accomplish each activity included in the
strategy and plans; and
(B) the staff skills and training needed for
timely and effective accomplishment of each
goal.
(c) SUBMISSION WITH THE PRESIDENT’S BUDGET.—Beginning with fiscal year 2011 and each fiscal year thereafter, the Secretary shall submit
to Congress the strategy and annual plan not
later than 60 days following the transmission of
the President’s budget submission under section
1105 of title 31.
(d) ACHIEVEMENT OF GOALS.—
(1) PROGRESS ASSESSMENT.—No less frequently than semiannually, the Coast Guard
Commandant shall assess the progress of the
Coast Guard toward achieving the goals set
forth in subsection (b). The Commandant shall
convey the Commandant’s assessment to the
employees of the marine safety workforce and
shall identify any deficiencies that should be
remedied before the next progress assessment.
(2) REPORT TO CONGRESS.—The Secretary
shall report annually to the Committee on
Transportation and Infrastructure of the
House of Representatives and the Committee
on Commerce, Science, and Transportation of
the Senate—
(A) on the performance of the marine safety program in achieving the goals of the marine safety strategy and annual plan under
subsection (a) for the year covered by the report;
(B) on the program’s mission performance
in achieving numerical measurable goals established under subsection (b); and
(C) recommendations on how to improve
performance of the program.
(Added Pub. L. 111–281, title V, § 522(a), Oct. 15,
2010, 124 Stat. 2956.)
REFERENCES IN TEXT
Section 93(c), referred to in subsec. (b)(1)(D), probably
means section 93(c) of Title 14, Coast Guard, which relates to marine safety responsibilities of the Commandant of the Coast Guard.
1 See

References in Text note below.

Page 33

§ 2117. Termination for unsafe operation
An individual authorized to enforce this
title—
(1) may remove a certificate required by this
title from a vessel that is operating in a condition that does not comply with the provisions
of the certificate;
(2) may order the individual in charge of a
vessel that is operating that does not have on
board the certificate required by this title to
return the vessel to a mooring and to remain
there until the vessel is in compliance with
this title; and
(3) may direct the individual in charge of a
vessel to which this title applies to immediately take reasonable steps necessary for the
safety of individuals on board the vessel if the
official observes the vessel being operated in
an unsafe condition that the official believes
creates an especially hazardous condition, including ordering the individual in charge to
return the vessel to a mooring and to remain
there until the situation creating the hazard is
corrected or ended.
(Added Pub. L. 111–281, title VI, § 608(a), Oct. 15,
2010, 124 Stat. 2967.)
§ 2118. Establishment of equipment standards
(a) In establishing standards for approved
equipment required on vessels subject to part B
of this title,1 the Secretary shall establish
standards that are—
(1) based on performance using the best
available technology that is economically
achievable; and
(2) operationally practical.
(b) Using the standards established under subsection (a), the Secretary may also certify lifesaving equipment that is not required to be carried on vessels subject to part B of this title 2 to
ensure that such equipment is suitable for its
intended purpose.
(c) At least once every 10 years the Secretary
shall review and revise the standards established
under subsection (a) to ensure that the standards meet the requirements of this section.
(Added Pub. L. 111–281, title VI, § 608(a), Oct. 15,
2010, 124 Stat. 2968.)
CHAPTER 23—OPERATION OF VESSELS
GENERALLY
Sec.

2301.
2302.
2303.
2303a.
2304.
2305.
2306.
2307.

Application.
Penalties for negligent operations and interfering with safe operation.
Duties related to marine casualty assistance
and information.
Post serious marine casualty alcohol testing.
Duty to provide assistance at sea.
Injunctions.
Vessel reporting requirements.
Limitation of liability for Coast Guard Vessel
Traffic Service pilots.
HISTORICAL AND REVISION NOTES

Chapter 23 lists requirements that relate to the general operation of all vessels. These include penalties
1 So
2 So

§ 2302

TITLE 46—SHIPPING

in original. Probably should be ‘‘this subtitle,’’.
in original. Probably should be ‘‘this subtitle’’.

and injunctive relief for negligent operation of a vessel.
It also provides penalties for failure to render assistance.
AMENDMENTS
2002—Pub. L. 107–295, title IV, § 431(b), Nov. 25, 2002,
116 Stat. 2128, added item 2307.
1998—Pub. L. 105–383, title III, §§ 302(b), 304(d)(2), Nov.
13, 1998, 112 Stat. 3418, 3420, added item 2302, struck out
former item 2302 ‘‘Penalties for negligent operations’’,
and added item 2303a.
1984—Pub. L. 98–498, title II, § 212(a)(1), Oct. 19, 1984, 98
Stat. 2305, added item 2306.

§ 2301. Application
Except as provided in sections 2304 and 2306 of
this title, this chapter applies to a vessel operated on waters subject to the jurisdiction of the
United States (including the territorial sea of
the United States as described in Presidential
Proclamation No. 5928 of December 27, 1988) and,
for a vessel owned in the United States, on the
high seas.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 508; Pub. L.
98–498, title II, § 212(a)(2), Oct. 19, 1984, 98 Stat.
2305; Pub. L. 105–383, title III, § 301(b)(2), Nov. 13,
1998, 112 Stat. 3417; Pub. L. 109–304, § 15(7), Oct. 6,
2006, 120 Stat. 1702.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

2301 ..............................................

46:480

Section 2301 provides that this chapter is applicable
to all vessels, including foreign flag vessels, when operating on waters subject to the jurisdiction of the
United States. Any vessel owned in the United States
while operating on the high seas would be included. By
ownership the Committee means those vessels that are
documented or numbered under United States laws and
those other vessels that are neither documented or
numbered but are of national origin and are not documented under the laws of a foreign nation. This chapter
is applicable to a foreign flag vessel that is in innocent
passage through territorial waters of the United
States, presently 3 miles seaward, whether or not it is
bound to or from a port subject to the jurisdiction of
the United States.
REFERENCES IN TEXT
Presidential Proclamation No. 5928, referred to in
text, is set out under section 1331 of Title 43, Public
Lands.
AMENDMENTS
2006—Pub. L. 109–304 substituted ‘‘sections 2304 and’’
for ‘‘section’’.
1998—Pub. L. 105–383 inserted ‘‘(including the territorial sea of the United States as described in Presidential Proclamation No. 5928 of December 27, 1988)’’
after ‘‘of the United States’’.
1984—Pub. L. 98–498 substituted ‘‘Except as provided
in section 2306 of this title, this chapter’’ for ‘‘This
chapter’’.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–498 effective 180 days after
Oct. 19, 1984, see section 214 of Pub. L. 98–498, set out as
an Effective Date note under section 2306 of this title.

§ 2302. Penalties for negligent operations and
interfering with safe operation
(a) A person operating a vessel in a negligent
manner or interfering with the safe operation of

§ 2303

TITLE 46—SHIPPING

a vessel, so as to endanger the life, limb, or
property of a person is liable to the United
States Government for a civil penalty of not
more than $5,000 in the case of a recreational
vessel, or $25,000 in the case of any other vessel.
(b) A person operating a vessel in a grossly
negligent manner that endangers the life, limb,
or property of a person commits a class A misdemeanor.
(c) An individual who is under the influence of
alcohol, or a dangerous drug in violation of a
law of the United States when operating a vessel, as determined under standards prescribed by
the Secretary by regulation—
(1) is liable to the United States Government
for a civil penalty of not more than $5,000; or
(2) commits a class A misdemeanor.
(d) For a penalty imposed under this section,
the vessel also is liable in rem unless the vessel
is—
(1) owned by a State or a political subdivision of a State;
(2) operated principally for governmental
purposes; and
(3) identified clearly as a vessel of that State
or subdivision.
(e)(1) A vessel may not transport Governmentimpelled cargoes if—
(A) the vessel has been detained and determined to be substandard by the Secretary for
violation of an international safety convention to which the United States is a party, and
the Secretary has published notice of that detention and determination in an electronic
form, including the name of the owner of the
vessel; or
(B) the operator of the vessel has on more
than one occasion had a vessel detained and
determined to be substandard by the Secretary for violation of an international safety
convention to which the United States is a
party, and the Secretary has published notice
of that detention and determination in an
electronic form, including the name of the
owner of the vessel.
(2) The prohibition in paragraph (1) expires for
a vessel on the earlier of—
(A) 1 year after the date of the publication
in electronic form on which the prohibition is
based; or
(B) any date on which the owner or operator
of the vessel prevails in an appeal of the violation of the relevant international convention
on which the detention is based.
(3) As used in this subsection, the term ‘‘Government-impelled cargo’’ means cargo for which
a Federal agency contracts directly for shipping
by water or for which (or the freight of which)
a Federal agency provides financing, including
financing by grant, loan, or loan guarantee, resulting in shipment of the cargo by water.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 508; Pub. L.
98–557, § 7(a), Oct. 30, 1984, 98 Stat. 2862; Pub. L.
101–380, title IV, §§ 4105(b)(2), 4302(a), Aug. 18,
1990, 104 Stat. 513, 537; Pub. L. 102–587, title V,
§ 5102, Nov. 4, 1992, 106 Stat. 5071; Pub. L. 105–383,
title III, §§ 302(a), 304(c), title IV, § 408(a), Nov. 13,
1998, 112 Stat. 3417, 3419, 3430; Pub. L. 107–295,
title III, § 325, Nov. 25, 2002, 116 Stat. 2105.)

Page 34
HISTORICAL AND REVISION NOTES

Revised section

Source section (U.S. Code)

2302(a) .........................................
2302(b) .........................................
2302(c) .........................................

46:1461(d)
46:1484(b)
46:1461(d)
46:1483
46:1484(b)

Section 2302 states that the negligent operation of a
vessel is prohibited. These acts are subject to civil and
criminal penalties and the involved vessel is subject to
an in rem action. The negligent operation provisions
have their genesis in the Act of April 25, 1940, 54 Stat.
167, when Congress prescribed that no person shall operate any motorboat or any vessel in a reckless or negligent manner. This provision was directed at all vessels and not those solely engaged in recreational boating. When the Federal Boat Safety Act of 1971, P.L.
92–75, 85 Stat. 217 (46 U.S.C. 1461) was enacted it adopted
the reckless or negligent operation provisions of the
1940 Act. It adopted for the first time a provision for assessing civil penalties in addition to criminal penalties.
It dropped the word ‘‘reckless’’ because of redundancy.
It also combined the two classes of vessels; ‘‘any motorboat or any vessel’’ into one class by using the word
‘‘vessel’’ and defined vessel as including every description of watercraft.
AMENDMENTS
2002—Subsec. (a). Pub. L. 107–295 substituted ‘‘$5,000
in the case of a recreational vessel, or $25,000 in the
case of any other vessel’’ for ‘‘$1,000’’
1998—Pub. L. 105–383, § 302(a)(1), substituted ‘‘Penalties for negligent operations and interfering with safe
operation’’ for ‘‘Penalties for negligent operations’’ in
section catchline.
Subsec. (a). Pub. L. 105–383, § 302(a)(2), substituted ‘‘or
interfering with the safe operation of a vessel, so as to
endanger’’ for ‘‘that endangers’’.
Subsec. (c)(1). Pub. L. 105–383, § 304(c), substituted
‘‘$5,000; or’’ for ‘‘$1,000 for a first violation and not more
than $5,000 for a subsequent violation; or’’.
Subsec. (e). Pub. L. 105–383, § 408(a), added subsec. (e).
1992—Subsec. (c)(1). Pub. L. 102–587 substituted ‘‘$1,000
for a first violation and not more than $5,000 for a subsequent violation’’ for ‘‘$1,000’’.
1990—Subsec. (b). Pub. L. 101–380, § 4302(a)(1), substituted ‘‘commits a class A misdemeanor’’ for ‘‘shall
be fined not more than $5,000, imprisoned for not more
than one year, or both’’.
Subsec. (c). Pub. L. 101–380, §§ 4105(b)(2), 4302(a)(2)(A),
substituted ‘‘under the influence of alcohol, or a dangerous drug in violation of a law of the United States’’
for ‘‘intoxicated’’ and struck out ‘‘, shall be’’ after ‘‘by
the Secretary by regulation’’.
Subsec. (c)(1). Pub. L. 101–380, § 4302(a)(2)(B), substituted ‘‘is liable’’ for ‘‘liable’’.
Subsec. (c)(2). Pub. L. 101–380, § 4302(a)(2)(C), amended
par. (2) generally. Prior to amendment, par. (2) read as
follows: ‘‘fined not more than $5,000, imprisoned for not
more than one year, or both.’’
1984—Subsecs. (c), (d). Pub. L. 98–557 added subsec. (c)
and redesignated former subsec. (c) as (d).
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105–383, title IV, § 408(b), Nov. 13, 1998, 112
Stat. 3431, provided that: ‘‘The amendment made by
subsection (a) [amending this section] takes effect January 1, 1999.’’
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 2303. Duties related to marine casualty assistance and information
(a) The master or individual in charge of a vessel involved in a marine casualty shall—

Page 35

§ 2306

TITLE 46—SHIPPING

(1) render necessary assistance to each individual affected to save that affected individual
from danger caused by the marine casualty, so
far as the master or individual in charge can
do so without serious danger to the master’s
or individual’s vessel or to individuals on
board; and
(2) give the master’s or individual’s name
and address and identification of the vessel to
the master or individual in charge of any
other vessel involved in the casualty, to any
individual injured, and to the owner of any
property damaged.
(b) An individual violating this section or a
regulation prescribed under this section shall be
fined not more than $1,000 or imprisoned for not
more than 2 years. The vessel also is liable in
rem to the United States Government for the
fine.
(c) An individual complying with subsection
(a) of this section or gratuitously and in good
faith rendering assistance at the scene of a marine casualty without objection by an individual
assisted, is not liable for damages as a result of
rendering assistance or for an act or omission in
providing or arranging salvage, towage, medical
treatment, or other assistance when the individual acts as an ordinary, reasonable, and prudent
individual would have acted under the circumstances.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 509.)
HISTORICAL AND REVISION NOTES
Revised section
2303(a) .........................................
2303(b) .........................................
2303(c) .........................................

Source section (U.S. Code)
33:367
46:1465(a)
33:368
46:1465(b)

Section 2303 requires a master or anyone in charge of
a vessel to provide assistance and render aid to those
involved in a marine casualty and to exchange information in a manner similar to automobile accident cases.
It also includes a ‘‘Good Samaritan’’ clause that exonerates anyone from liability when rendering assistance
in an ordinary, reasonable, or prudent manner.

§ 2303a. Post serious marine casualty alcohol
testing
(a) The Secretary shall establish procedures to
ensure that after a serious marine casualty occurs, alcohol testing of crew members or other
persons responsible for the operation or other
safety-sensitive functions of the vessel or vessels involved in such casualty is conducted no
later than 2 hours after the casualty occurs, unless such testing cannot be completed within
that time due to safety concerns directly related
to the casualty.
(b) The procedures in subsection (a) shall require that if alcohol testing cannot be completed within 2 hours of the occurrence of the
casualty, such testing shall be conducted as
soon thereafter as the safety concerns in subsection (a) have been adequately addressed to
permit such testing, except that such testing
may not be required more than 8 hours after the
casualty occurs.
(Added Pub. L. 105–383, title III, § 304(d)(1), Nov.
13, 1998, 112 Stat. 3419.)

§ 2304. Duty to provide assistance at sea
(a)(1) A master or individual in charge of a
vessel shall render assistance to any individual
found at sea in danger of being lost, so far as the
master or individual in charge can do so without
serious danger to the master’s or individual’s
vessel or individuals on board.
(2) Paragraph (1) does not apply to a vessel of
war or a vessel owned by the United States Government appropriated only to a public service.
(b) A master or individual violating this section shall be fined not more than $1,000, imprisoned for not more than 2 years, or both.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 509; Pub. L.
109–304, § 15(8), Oct. 6, 2006, 120 Stat. 1703.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

2304 ..............................................

46:728

Section 2304 requires a master or individual in charge
of a vessel to render assistance to those in danger at
sea if able to do so without seriously endangering the
vessel or crew.
AMENDMENTS
2006—Subsec. (a). Pub. L. 109–304 designated existing
provisions as par. (1) and added par. (2).

§ 2305. Injunctions
(a) The district courts of the United States
have jurisdiction to enjoin the negligent operation of vessels prohibited by this chapter on
the petition of the Attorney General for the
United States Government.
(b) When practicable, the Secretary shall—
(1) give notice to any person against whom
an action for injunctive relief is considered
under this section an opportunity to present
that person’s views; and
(2) except for a knowing and willful violation, give the person a reasonable opportunity
to achieve compliance.
(c) The failure to give notice and opportunity
to present views under subsection (b) of this section does not preclude the court from granting
appropriate relief.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 509.)
HISTORICAL AND REVISION NOTES
Revised section
2305 ..............................................

Source section (U.S. Code)
46:1485

Section 2305 provides injunctive authority to enjoin
the negligent operation of vessels. This authority can
also be used to enjoin the operation of foreign or domestic vessels on our waters when they are unsuitable
for the voyage intended.

§ 2306. Vessel reporting requirements
(a)(1) An owner, charterer, managing operator,
or agent of a vessel of the United States, having
reason to believe (because of lack of communication with or nonappearance of a vessel or
any other incident) that the vessel may have
been lost or imperiled, immediately shall—
(A) notify the Coast Guard; and
(B) use all available means to determine the
status of the vessel.

§ 2307

TITLE 46—SHIPPING

(2) When more than 48 hours have passed since
the owner, charterer, managing operator, or
agent of a vessel required to report to the
United States Flag Merchant Vessel Location
Filing System under authority of section 50113
of this title has received a communication from
the vessel, the owner, charterer, managing operator, or agent immediately shall—
(A) notify the Coast Guard; and
(B) use all available means to determine the
status of the vessel.
(3) A person notifying the Coast Guard under
paragraph (1) or (2) of this subsection shall provide the name and identification number of the
vessel, the names of individuals on board, and
other information that may be requested by the
Coast Guard. The owner, charterer, managing
operator, or agent also shall submit written confirmation to the Coast Guard within 24 hours
after nonwritten notification to the Coast Guard
under those paragraphs.
(4) An owner, charterer, managing operator, or
agent violating this subsection is liable to the
United States Government for a civil penalty of
not more than $5,000 for each day during which
the violation occurs.
(b)(1) The master of a vessel of the United
States required to report to the System shall report to the owner, charterer, managing operator, or agent at least once every 48 hours.
(2) A master violating this subsection is liable
to the Government for a civil penalty of not
more than $1,000 for each day during which the
violation occurs.
(c) The Secretary may prescribe regulations to
carry out this section.
(Added Pub. L. 98–498, title II, § 212(a)(3), Oct. 19,
1984, 98 Stat. 2305; amended Pub. L. 109–304,
§ 15(9), Oct. 6, 2006, 120 Stat. 1703.)
AMENDMENTS
2006—Subsec. (a)(2). Pub. L. 109–304 substituted ‘‘section 50113 of this title’’ for ‘‘section 212(A) of the Merchant Marine Act, 1936 (46 App. U.S.C. 1122a),’’.

Page 36

for damages caused by or related to such assistance unless the acts or omissions of such pilot
constitute gross negligence or willful misconduct.
(Added Pub. L. 107–295, title IV, § 431(a), Nov. 25,
2002, 116 Stat. 2128.)
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

PART B—INSPECTION AND REGULATION OF
VESSELS
HISTORICAL AND REVISION NOTES
Part B provides authority and responsibility for the
inspection and regulation of vessels by the Coast
Guard. This part specifies those vessels subject to inspection, those that are specifically exempt from inspection, and related inspection requirements and procedures. Due to the need for special requirements for
the inspection and regulation of passenger vessels and
those vessels carrying liquid bulk dangerous cargoes
separate chapters have been developed. Additional
chapters provide for recreational vessels and those
other vessels that are regulated but are not subject to
inspection and certification by the Coast Guard. It
should also be noted that the United States is signatory to a number of international treaties on maritime
safety and seamen’s welfare, such as the various Safety
of Life at Sea (SOLAS) treaties, and that their provisions and requirements are part of United States maritime law and in many cases are quite extensive.

CHAPTER 31—GENERAL
Sec.

3101.
3102.
3103.
3104.

Authority to suspend inspection.
Immersion suits.
Use of reports, documents, and records.
Survival craft.

EFFECTIVE DATE

AMENDMENTS

Pub. L. 98–498, title II, § 214, Oct. 19, 1984, 98 Stat. 2306,
provided that: ‘‘Sections 211(a) and 212 of this subtitle
[enacting this section and amending sections 2302, 3309,
6101, and 6103 of this title] are effective one hundred
and eighty days after the date of enactment of this Act
[Oct. 19, 1984].’’

2010—Pub. L. 111–281, title VI, § 609(b), Oct. 15, 2010, 124
Stat. 2968, added item 3104.
1996—Pub. L. 104–324, title VI, § 603(b), Oct. 19, 1996, 110
Stat. 3930, added item 3103.
1988—Pub. L. 100–424, § 8(a)(3), Sept. 9, 1988, 102 Stat.
1593, substituted ‘‘Immersion’’ for ‘‘Exposure’’ in item
3102.
1985—Pub. L. 99–36, § 2, May 15, 1985, 99 Stat. 68, repealed section 22 of Pub. L. 98–557 and the amendments
made by that section, which added first identical item
3102, effective Nov. 8, 1984, thereby leaving Pub. L.
98–623 as the sole authority for the addition of item
3102. See 1984 Amendment note below.
1984—Pub. L. 98–557, § 22(a)(2), Oct. 30, 1984, 98 Stat.
2871, and Pub. L. 98–623, title VII, § 701(a)(2), Nov. 8, 1984,
98 Stat. 3413, added identical item 3102. See 1985 Amendment note above.

TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 2307. Limitation of liability for Coast Guard
Vessel Traffic Service pilots
Any pilot, acting in the course and scope of his
or her duties while at a United States Coast
Guard Vessel Traffic Service, who provides information, advice, or communication assistance
while under the supervision of a Coast Guard officer, member, or employee shall not be liable

§ 3101. Authority to suspend inspection
When the President decides that the needs of
foreign commerce require, the President may
suspend a provision of this part for a foreignbuilt vessel registered as a vessel of the United
States on conditions the President may specify.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 510.)

Page 37

§ 3104

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised section

Source section (U.S. Code)

3101 ..............................................

46:82

Section 3101 provides the President with the authority to suspend the inspection laws for a foreign-built
reflagged U.S. vessel when the needs of foreign commerce require this. For example, if a foreign-flag vessel
is reflagged in the U.S. but does not meet the specific
Coast Guard inspection requirements, the President
could suspend these requirements.
EFFECTIVE DATE
Pub. L. 98–89, § 2(g)(1), Aug. 26, 1983, 97 Stat. 599, provided that: ‘‘Part B [chapters 31 to 43] of subtitle II and
sections 7306 (related to able seaman sail) and 7311 of
title 46 (as enacted by section 1 of this Act) take effect
April 15, 1984, or when regulations for sailing school
vessels under part B are effective, whichever is earlier.’’ [Part B of subtitle II and sections 7306 (related to
able seaman sail) and 7311 of title 46 effective Apr. 15,
1984, in absence of regulations for sailing school vessels
under part B on that date.]
DELEGATION OF FUNCTIONS
For delegation to Secretary of the Treasury of authority vested in President by this section, see Ex. Ord.
No. 10289, Sept. 17, 1951, 16 F.R. 9499, as amended, set
out as a note under section 301 of Title 3, The President.

§ 3102. Immersion suits
(a) The Secretary shall by regulation require
immersion suits on vessels designated by the
Secretary that operate in the Atlantic Ocean
north of 32 degrees North latitude or south of 32
degrees South latitude and in all other waters
north of 35 degrees North latitude or south of 35
degrees South latitude. The Secretary may not
exclude a vessel from designation under this section only because that vessel carries other lifesaving equipment.
(b) The Secretary shall establish standards for
an immersion suit required by this section, including standards to guarantee adequate thermal protection, buoyance, and flotation stability.
(c)(1) The owner, charterer, managing operator, agent, master, or individual in charge of a
vessel violating this section or a regulation prescribed under this section is liable to the United
States Government for a civil penalty of not
more than $5,000. The vessel also is liable in rem
for the penalty.
(2) The owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
violating this section or a regulation prescribed
under this section may be fined not more than
$25,000, imprisoned for not more than 5 years, or
both.
(Added Pub. L. 98–557, § 22(a)(1), Oct. 30, 1984, 98
Stat. 2871; amended Pub. L. 98–623, title VII,
§ 701(a)(1), Nov. 8, 1984, 98 Stat. 3413; Pub. L.
99–36, § 2, May 15, 1985, 99 Stat. 68; Pub. L.
100–424, § 8(a)(1), (2), Sept. 9, 1988, 102 Stat. 1592,
1593.)
CODIFICATION
Pub. L. 98–557 and Pub. L. 98–623 enacted identical
section 3102 of this title. Section 22 of Pub. L. 98–557,
which enacted first identical section 3102 of this title,
was repealed by section 2 of Pub. L. 99–36, set out below
as a Repeal of Duplicate Section note.

AMENDMENTS
1988—Pub. L. 100–424 substituted ‘‘Immersion’’ for
‘‘Exposure’’ in section catchline, and ‘‘immersion’’ for
‘‘exposure’’ in subsecs. (a) and (b).
REPEAL OF DUPLICATE SECTION 3102; REFERENCES
THERETO AND REGULATIONS AND ACTIONS THEREUNDER
Pub. L. 99–36, § 2, May 15, 1985, 99 Stat. 68, provided
that: ‘‘Section 22 of the Coast Guard Authorization Act
of 1984 (Public Law 98–557; 98 Stat. 2871), and the amendments made by such section [enacting first identical
section 3102 of this title and provisions set out as a note
under this section and amending the analysis of chapter 31 of this title], are repealed as of November 8, 1984.
Regulations prescribed and actions taken under, and
references to, such section and the amendments made
by such section are deemed to be regulations prescribed
and actions taken under, and references to, section 701
of the Act of November 8, 1984 (Public Law 98–623; 98
Stat. 3413), and the amendments made by such section
701 [enacting second identical section 3102 of this title
and provisions set out as a note under this section and
amending the analysis of chapter 31 of this title].’’
REGULATIONS
Pub. L. 98–623, title VII, § 701(b), (c), Nov. 8, 1984, 98
Stat. 3413, provided:
‘‘(b) Section 3102 of title 46, United States Code (as
added by subsection (a) of this section), does not limit
the authority of the Secretary of the department in
which the Coast Guard is operating to prescribe regulations requiring exposure suits on vessels not required
by section 3102 to have exposure suits.
‘‘(c) The regulations prescribed under section 3102 of
title 46, United States Code (as added by subsection (a)
of this section), shall be effective not later than 60 days
after the date of enactment of this title [Nov. 8, 1984].’’
[Regulations effective Dec. 30, 1984, see 49 F.R. 50722,
Dec. 31, 1984.]
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]
Similar provisions were contained in section 22(b), (c)
of Pub. L. 98–557, which was repealed by section 2 of
Pub. L. 99–36, set out above as a Repeal of Duplicate
Section note.

§ 3103. Use of reports, documents, and records
The Secretary may rely, as evidence of compliance with this subtitle, on—
(1) reports, documents, and records of other
persons who have been determined by the Secretary to be reliable; and
(2) other methods the Secretary has determined to be reliable.
(Added Pub. L. 104–324, title VI, § 603(a), Oct. 19,
1996, 110 Stat. 3930.)
§ 3104. Survival craft
(a) Except as provided in subsection (b), the
Secretary may not approve a survival craft as a
safety device for purposes of this part, unless
the craft ensures that no part of an individual is
immersed in water.
(b) The Secretary may authorize a survival
craft that does not provide protection described
in subsection (a) to remain in service until not
later than January 1, 2015, if—
(1) it was approved by the Secretary before
January 1, 2010; and

§ 3201

TITLE 46—SHIPPING

(2) it is in serviceable condition.
(Added Pub. L. 111–281, title VI, § 609(a), Oct. 15,
2010, 124 Stat. 2968.)
CHAPTER 32—MANAGEMENT OF VESSELS
Sec.

3201.
3202.
3203.
3204.
3205.

Definitions.
Application.
Safety management system.
Implementation of safety management system.
Certification.

§ 3201. Definitions
In this chapter—
(1) ‘‘International Safety Management
Code’’ has the same meaning given that term
in chapter IX of the Annex to the International Convention for the Safety of Life at
Sea, 1974;
(2) ‘‘responsible person’’ means—
(A) the owner of a vessel to which this
chapter applies; or
(B) any other person that has—
(i) assumed the responsibility for operation of a vessel to which this chapter applies from the owner; and
(ii) agreed to assume with respect to the
vessel responsibility for complying with
all the requirements of this chapter and
the regulations prescribed under this chapter.
(3) ‘‘vessel engaged on a foreign voyage’’
means a vessel to which this chapter applies—
(A) arriving at a place under the jurisdiction of the United States from a place in a
foreign country;
(B) making a voyage between places outside the United States; or
(C) departing from a place under the jurisdiction of the United States for a place in a
foreign country.
(Added Pub. L. 104–324, title VI, § 602(a), Oct. 19,
1996, 110 Stat. 3928.)
SAFETY MANAGEMENT CODE REPORT AND POLICY
Pub. L. 105–383, title III, § 306, Nov. 13, 1998, 112 Stat.
3420, provided that:
‘‘(a) REPORT ON IMPLEMENTATION AND ENFORCEMENT
OF THE INTERNATIONAL SAFETY MANAGEMENT CODE.—
‘‘(1) The Secretary of Transportation (in this section referred to as the ‘Secretary’) shall conduct a
study—
‘‘(A) reporting on the status of implementation of
the International Safety Management Code (hereafter referred to in this section as ‘Code’);
‘‘(B) detailing enforcement actions involving the
Code, including the role documents and reports produced pursuant to the Code play in such enforcement actions;
‘‘(C) evaluating the effects the Code has had on
marine safety and environmental protection, and
identifying actions to further promote marine safety and environmental protection through the Code;
‘‘(D) identifying actions to achieve full compliance with and effective implementation of the
Code; and
‘‘(E) evaluating the effectiveness of internal reporting and auditing under the Code, and recommending actions to ensure the accuracy and
candidness of such reporting and auditing.
These recommended actions may include proposed
limits on the use in legal proceedings of documents
produced pursuant to the Code.

Page 38

‘‘(2) The Secretary shall provide opportunity for the
public to participate in and comment on the study
conducted under paragraph (1).
‘‘(3) Not later than 18 months after the date of the
enactment of this Act [Nov. 13, 1998], the Secretary
shall submit to the Congress a report on the results
of the study conducted under paragraph (1).
‘‘(b) POLICY.—
‘‘(1) Not later than 9 months after submission of the
report in subsection (a)(3), the Secretary shall develop a policy to achieve full compliance with and effective implementation of the Code. The policy may
include—
‘‘(A) enforcement penalty reductions and waivers,
limits on the use in legal proceedings of documents
produced pursuant to the Code, or other incentives
to ensure accurate and candid reporting and auditing;
‘‘(B) any other measures to achieve full compliance with and effective implementation of the
Code; and
‘‘(C) if appropriate, recommendations to Congress
for any legislation necessary to implement one or
more elements of the policy.
‘‘(2) The Secretary shall provide opportunity for the
public to participate in the development of the policy
in paragraph (1).
‘‘(3) Upon completion of the policy in paragraph (1),
the Secretary shall publish the policy in the Federal
Register and provide opportunity for public comment
on the policy.’’
VESSEL MANAGEMENT METHODS STUDY
Pub. L. 104–324, title VI, § 602(c), Oct. 19, 1996, 110 Stat.
3930, provided that:
‘‘(1) IN GENERAL.—The Secretary of the department in
which the Coast Guard is operating shall conduct, in
cooperation with the owners, charterers, and managing
operators of vessels documented under chapter 121 of
title 46, United States Code, and other interested persons, a study of the methods that may be used to implement and enforce the International Management
Code for the Safe Operation of Ships and for Pollution
Prevention under chapter IX of the Annex to the International Convention for the Safety of Life at Sea, 1974.
‘‘(2) REPORT.—The Secretary shall submit to the Congress a report of the results of the study required under
paragraph (1) before the earlier of—
‘‘(A) the date that final regulations are prescribed
under section 3203 of title 46, United States Code (as
enacted by subsection (a)[)]; or
‘‘(B) the date that is 1 year after the date of enactment of this Act [Oct. 19, 1996].’’
INTERNATIONAL CONVENTION FOR SAFETY OF LIFE AT
SEA
For International Conventions for the Safety of Life
at Sea to which the United States has been a party, see
section 1602 of Title 33, Navigation and Navigable Waters, and notes thereunder.

§ 3202. Application
(a) FOREIGN VOYAGES AND FOREIGN VESSELS.—
This chapter applies to a vessel that—
(1)(A) is transporting more than 12 passengers described in section 2101(21)(A) of this
title; or
(B) is of at least 500 gross tons as measured
under section 14302 of this title and is a tanker, freight vessel, bulk freight vessel, high
speed freight vessel, or self-propelled mobile
offshore drilling unit; and
(2)(A) is engaged on a foreign voyage; or
(B) is a foreign vessel departing from a place
under the jurisdiction of the United States on
a voyage, any part of which is on the high
seas.

Page 39

§ 3205

TITLE 46—SHIPPING

(b) OTHER PASSENGER VESSELS.—This chapter
applies to a vessel that is—
(1) a passenger vessel or small passenger vessel; and
(2) is transporting more passengers than a
number prescribed by the Secretary based on
the number of individuals on the vessel that
could be killed or injured in a marine casualty.
(c) VOLUNTARY APPLICATION.—This chapter applies to a vessel not described in subsection (a)
of this section if the owner of the vessel requests
the Secretary to apply this chapter to the vessel.
(d) EXCEPTION.—Except as provided in subsection (c) of this section, this chapter does not
apply to—
(1) a barge;
(2) a recreational vessel not engaged in commercial service;
(3) a fishing vessel;
(4) a vessel operating on the Great Lakes or
its tributary and connecting waters that is not
described in subsection (b) of this section; or
(5) a public vessel.
(Added Pub. L. 104–324, title VI, § 602(a), Oct. 19,
1996, 110 Stat. 3928; amended Pub. L. 108–293, title
IV, § 405(a), Aug. 9, 2004, 118 Stat. 1043; Pub. L.
111–281, title VI, § 610(a), Oct. 15, 2010, 124 Stat.
2969.)
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281, § 610(a)(1), substituted ‘‘FOREIGN VOYAGES AND FOREIGN VESSELS.—’’
for ‘‘MANDATORY APPLICATION.—’’ in heading.
Subsecs. (b) to (d). Pub. L. 111–281, § 610(a)(2)–(4),
added subsec. (b), redesignated former subsecs. (b) and
(c) as (c) and (d), respectively, and, in introductory provisions of subsec. (d), substituted ‘‘subsection (c)’’ for
‘‘subsection (b)’’.
Subsec. (d)(4). Pub. L. 111–281, § 610(a)(5), inserted
‘‘that is not described in subsection (b) of this section’’
after ‘‘connecting waters’’.
2004—Subsec. (a). Pub. L. 108–293 reenacted heading
without change and amended text generally. Prior to
amendment, text read as follows: ‘‘This chapter applies
to the following vessels engaged on a foreign voyage:
‘‘(1) Beginning July 1, 1998—
‘‘(A) a vessel transporting more than 12 passengers described in section 2101(21)(A) of this title;
and
‘‘(B) a tanker, bulk freight vessel, or high-speed
freight vessel, of at least 500 gross tons.
‘‘(2) Beginning July 1, 2002, a freight vessel and a
self-propelled mobile offshore drilling unit of at least
500 gross tons.’’

(5) procedures for preparing for and responding to emergency situations; and
(6) procedures for internal audits and management reviews of the system.
(b) COMPLIANCE WITH CODE.—Regulations prescribed under this section shall be consistent
with the International Safety Management Code
with respect to vessels to which this chapter applies under section 3202(a) of this title.
(c) In prescribing regulations for passenger
vessels and small passenger vessels, the Secretary shall consider—
(1) the characteristics, methods of operation,
and nature of the service of these vessels; and
(2) with respect to vessels that are ferries,
the sizes of the ferry systems within which the
vessels operate.
(Added Pub. L. 104–324, title VI, § 602(a), Oct. 19,
1996, 110 Stat. 3928; amended Pub. L. 108–293, title
IV, § 405(b), Aug. 9, 2004, 118 Stat. 1043; Pub. L.
111–281, title VI, § 610(b), Oct. 15, 2010, 124 Stat.
2969.)
AMENDMENTS
2010—Subsec. (c). Pub. L. 111–281 added subsec. (c).
2004—Subsec. (b). Pub. L. 108–293 substituted ‘‘vessels
to which this chapter applies under section 3202(a) of
this title’’ for ‘‘vessels engaged on a foreign voyage’’.

§ 3204. Implementation of safety management
system
(a) SAFETY MANAGEMENT PLAN.—Each responsible person shall establish and submit to the
Secretary for approval a safety management
plan describing how that person and vessels of
the person to which this chapter applies will
comply with the regulations prescribed under
section 3203(a) of this title.
(b) APPROVAL.—Upon receipt of a safety management plan submitted under subsection (a),
the Secretary shall review the plan and approve
it if the Secretary determines that it is consistent with and will assist in implementing the
safety management system established under
section 3203.
(c) PROHIBITION ON VESSEL OPERATION.—A vessel to which this chapter applies under section
3202(a) may not be operated without having on
board a Safety Management Certificate and a
copy of a Document of Compliance issued for the
vessel under section 3205 of this title.
(Added Pub. L. 104–324, title VI, § 602(a), Oct. 19,
1996, 110 Stat. 3929.)

§ 3203. Safety management system
(a) IN GENERAL.—The Secretary shall prescribe
regulations which establish a safety management system for responsible persons and vessels
to which this chapter applies, including—
(1) a safety and environmental protection
policy;
(2) instructions and procedures to ensure
safe operation of those vessels and protection
of the environment in compliance with international and United States law;
(3) defined levels of authority and lines of
communications between, and among, personnel on shore and on the vessel;
(4) procedures for reporting accidents and
nonconformities with this chapter;

§ 3205. Certification
(a) ISSUANCE OF CERTIFICATE AND DOCUMENT.—
After verifying that the responsible person for a
vessel to which this chapter applies and the vessel comply with the applicable requirements
under this chapter, the Secretary shall issue for
the vessel, on request of the responsible person,
a Safety Management Certificate and a Document of Compliance.
(b) MAINTENANCE OF CERTIFICATE AND DOCUMENT.—A Safety Management Certificate and a
Document of Compliance issued for a vessel
under this section shall be maintained by the responsible person for the vessel as required by
the Secretary.

§ 3301

TITLE 46—SHIPPING

(c) VERIFICATION OF COMPLIANCE.—The Secretary shall—
(1) periodically review whether a responsible
person having a safety management plan approved under section 3204(b) and each vessel to
which the plan applies is complying with the
plan; and
(2) revoke the Secretary’s approval of the
plan and each Safety Management Certificate
and Document of Compliance issued to the
person for a vessel to which the plan applies,
if the Secretary determines that the person or
a vessel to which the plan applies has not complied with the plan.
(d) ENFORCEMENT.—At the request of the Secretary, the Secretary of Homeland Security
shall withhold or revoke the clearance required
by section 60105 of this title of a vessel that is
subject to this chapter under section 3202(a) of
this title or to the International Safety Management Code, if the vessel does not have on board
a Safety Management Certificate and a copy of
a Document of Compliance for the vessel. Clearance may be granted on filing a bond or other
surety satisfactory to the Secretary.
(Added Pub. L. 104–324, title VI, § 602(a), Oct. 19,
1996, 110 Stat. 3929; amended Pub. L. 109–304,
§ 15(10), Oct. 6, 2006, 120 Stat. 1703; Pub. L.
110–181, div. C, title XXXV, § 3529(b)(1)(A), Jan.
28, 2008, 122 Stat. 603.)
AMENDMENTS
2008—Subsec. (d). Pub. L. 110–181 amended Pub. L.
109–304, § 15(10). See 2006 Amendment note below.
2006—Subsec. (d). Pub. L. 109–304, § 15(10), as amended
by Pub. L. 110–181, substituted ‘‘Secretary of Homeland
Security shall withhold or revoke the clearance required by section 60105 of this title’’ for ‘‘Secretary of
the Treasury shall withhold or revoke the clearance required by section 4197 of the Revised Statutes (46 U.S.C.
App. 91)’’.
EFFECTIVE DATE OF 2008 AMENDMENT
Pub. L. 110–181, div. C, title XXXV, § 3529(b)(2), Jan.
28, 2008, 122 Stat. 603, provided that: ‘‘The amendments
made by paragraph (1) [amending this section and section 31325 of this title] shall be effective as if included
in the enactment of Public Law 109–304.’’

CHAPTER 33—INSPECTION GENERALLY
Sec.

3301.
3302.
3303.
3304.
3305.
3306.
3307.
3308.
3309.
3310.
3311.
3312.
3313.
3314.
3315.
3316.
3317.
3318.

Vessels subject to inspection.
Exemptions.
Reciprocity for foreign vessels.
Transporting individuals in addition to crew.
Scope and standards of inspection.
Regulations.
Frequency of inspection.
Examinations.
Certificate of inspection.
Records of certification.
Certificate of inspection required.
Display of certificate of inspection.
Compliance with certificate of inspection.
Expiration of certificate of inspection.
Disclosure of defects and protection of informants.
Classification societies.
Fees.
Penalties.
HISTORICAL AND REVISION NOTES

Chapter 33 consolidates the laws governing the inspection and certification of vessels by the Coast Guard

Page 40

that have developed over a period in excess of 140 years.
The original laws were directed to the safety of the relatively new and potentially dangerous steam vessel.
The demand for Federal remedial legislation began during the early 1800’s after frequent and disastrous explosions of steam boilers on passenger vessels. This directly led to the first maritime safety laws in 1838 that
required periodic inspection and certification of vessels
engaged in the transportation of passengers and freight
on the waters of the United States. This was followed
by a more extensive steamboat inspection law in 1852
which adopted for the first time the principle of licensing for river pilots and engineers. It also created a new
Federal maritime safety inspection service called the
Federal Inspection Service that eventually became the
Bureau of Marine Inspection and Navigation, whose duties were temporarily assumed in 1941 and permanently
assumed in 1946 by the United States Coast Guard.
In 1864 the principal inspection and licensing provisions of the 1852 act were made applicable to ferries,
towing vessels, and canal boats. However, steamboat
explosions continued with high loss of life and property. One of the greatest of all disasters, the destruction of the passenger vessel Sultana by explosion and
fire with a loss of life estimated at more than 1500 lives
in April 1865, led to renewed legislation efforts. In 1871
this culminated with legislation that combined a number of new requirements into a coherent and unified
body of maritime safety laws. At the time of the adoption of the Revised Statutes in 1874, a maritime safety
code was well established for vessels propelled in whole
or in part by steam.
In the more than 100 years since then, as the public
recognized the need for vessel safety legislation, primarily as the result of maritime disasters, other classes of vessels were subjected to Federal inspection or
regulatory control. These included vessels propelled by
gas, fluid, naphtha, or electric motors in 1897; sail vessels and barges carrying passengers for hire in 1898; seagoing barges in 1908; motorboats in 1910; steam vessels
owned by the Department of Commerce in 1919; seagoing vessels of 300 gross tons and over on June 20, 1936;
all tank vessels carrying flammable or combustible liquid cargo in bulk regardless of size or means of propulsion of June 23, 1936; motorboats again in 1940; all vessels carrying more than six passengers in 1956; tank
vessels again in 1978; and offshore supply vessels in 1980.
There was also considerable legislation that amended
or supplemented these primary maritime safety laws.
The net result has been a patchwork quilt of categories and classifications that requires a tabulation of
more than seventy different classes of inspected vessels. This revision gathers into one section of the law
all classes of vessels that are subject to inspection and
certification without changing the application of
present law as to any one class of vessel. The revision
does not alter the application of the present law so as
to expand inspection requirements to any vessel presently not subject to inspection nor to remove from inspection any vessel that is presently subject to inspection.
AMENDMENTS
1996—Pub. L. 104–324, title VI, § 607(b)(2), Oct. 19, 1996,
110 Stat. 3932, substituted ‘‘Classification societies’’ for
‘‘United States classification societies’’ in item 3316.
1986—Pub. L. 99–307, § 1(5)(B), May 19, 1986, 100 Stat.
445, substituted ‘‘Transporting’’ for ‘‘Carrying’’ in item
3304.

§ 3301. Vessels subject to inspection
The following categories of vessels are subject
to inspection under this part:
(1) freight vessels.
(2) nautical school vessels.
(3) offshore supply vessels.
(4) passenger vessels.
(5) sailing school vessels.

Page 41
(6) seagoing barges.
(7) seagoing motor vessels.
(8) small passenger vessels.
(9) steam vessels.
(10) tank vessels.
(11) fish processing vessels.
(12) fish tender vessels.
(13) Great Lakes barges.
(14) oil spill response vessels.
(15) towing vessels.

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 510; Pub. L.
98–364, title IV, § 402(2), July 17, 1984, 98 Stat. 445;
Pub. L. 102–587, title V, § 5208(b), Nov. 4, 1992, 106
Stat. 5076; Pub. L. 104–324, title XI, § 1104(g), Oct.
19, 1996, 110 Stat. 3967; Pub. L. 108–293, title IV,
§ 415(a), Aug. 9, 2004, 118 Stat. 1047.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3301(1) ..........................................
3301(2) ..........................................
3301(3) ..........................................
3301(4) ..........................................
3301(5)
3301(6)
3301(7)
3301(8)
3301(9)

§ 3302

TITLE 46—SHIPPING

..........................................
..........................................
..........................................
..........................................
..........................................

3301(10) ........................................

46:391
46:404
46:1295f(c)
46:404–1
46:390a
46:391
46:390a
46:395
46:367
46:390a
46:362
46:391
46:405
46:391a

Section 3301 lists all classes of vessels that are subject to inspection and certification by the Coast Guard.
This section represents one of the sought-after advantages of the bill to simplify access to the provisions of
law governing the regulation of vessels. Under the
present law, a vessel’s inspection status must be determined by examining a table appearing at section
2.01–7A of title 46, Code of Federal Regulations that divides all vessels into more than 70 separate classes.
It is important to note that while the classes of vessels are now limited to ten, there is no prohibition
against developing regulations to meet the special
needs of various size vessels within any one category.
For example, it is expected that the Coast Guard will
continue the practice of establishing standards for
freight vessels of not more than 100 gross tons and
other standards for larger freight vessels.
It should also be noted that a particular vessel can,
when engaged in various types of operations, be subject
to varying inspection laws. For example, an offshore
supply vessel could be classed as a small passenger vessel or a passenger vessel when it operates as a crew
boat carrying individuals other than those defined in
section 2101(21). If the offshore supply vessel is 500 gross
tons and over it would then be subject to inspection as
a seagoing motor vessel, a freight vessel, or a passenger
vessel.
AMENDMENTS
2004—Par. (15). Pub. L. 108–293 added par. (15).
1996—Par. (14). Pub. L. 104–324 added par. (14).
1992—Par. (13). Pub. L. 102–587 added par. (13).
1984—Pars. (11), (12). Pub. L. 98–364 added pars. (11)
and (12).
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–587 effective Nov. 4, 1992,
for Great Lakes barges placed in operation after Nov. 4,
1992, and effective one year after Nov. 4, 1992, for Great
Lakes barges in operation on Nov. 4, 1992, with provision for interim safety requirements, see section
5208(c), (d) of Pub. L. 102–587, set out as a note under
section 2101 of this title.
EFFECTIVE DATE
Chapter effective Apr. 15, 1984, see section 2(g)(1) of
Pub. L. 98–89, set out as a note under section 3101 of
this title.

PILOT PROGRAM
Pub. L. 105–383, title IV, § 412(b), Nov. 13, 1998, 112
Stat. 3432, provided that:
‘‘(1) IN GENERAL.—The Secretary may establish a
pilot program to exempt a vessel of at least 300 gross
tons as measured under chapter 143 or chapter 145 of
title 46, United States Code, from the requirement to be
inspected under section 3301(7) of title 46, United States
Code, as a seagoing motor vessel, if—
‘‘(A) the vessel does not carry any cargo or passengers for hire;
‘‘(B) the vessel does not engage in commercial service, commercial fisheries, or oceanographic research;
and
‘‘(C) the vessel does not engage in towing.
‘‘(2) EXPIRATION OF AUTHORITY.—The authority to
grant the exemptions under this subsection expires 2
years after the date of the enactment of this Act [Nov.
13, 1998]. Any specific exemptions granted under this
subsection shall nonetheless remain in effect.’’
SMALL PASSENGER VESSEL PILOT INSPECTION PROGRAM
WITH STATE OF MINNESOTA
Pub. L. 104–324, title XI, § 1122, Oct. 19, 1996, 110 Stat.
3979, provided that:
‘‘(a) IN GENERAL.—The Secretary may enter into an
agreement with the State under which the State may
inspect small passenger vessels operating in waters of
that State designated by the Secretary, if—
‘‘(1) the State plan for the inspection of small passenger vessels meets such requirements as the Secretary may require to ensure the safety and operation of such vessels in accordance with the standards that would apply if the Coast Guard were inspecting such vessels; and
‘‘(2) the State will provide such information obtained through the inspection program to the Secretary annually in such form and in such detail as the
Secretary may require.
‘‘(b) FEES.—The Secretary may adjust or waive the
user fee imposed under section 3317 of title 46, United
States Code, for the inspection of small passenger vessels inspected under the State program.
‘‘(c) TERMINATION.—The authority provided by subsection (a) terminates on December 31, 1999.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) SECRETARY.—The term ‘Secretary’ means the
Secretary of the department in which the Coast
Guard is operating.
‘‘(2) STATE.—The term ‘State’ means the State of
Minnesota.
‘‘(3) SMALL PASSENGER VESSEL.—The term ‘small
passenger vessel’ means a small passenger vessel (as
defined in section 2101(35) of title 46, United States
Code) of not more than 40 feet overall in length.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]

§ 3302. Exemptions
(a) A vessel is not excluded from one category
only because the vessel is—
(1) included in another category of section
3301 of this title; or
(2) excluded by this section from another
category of section 3301 of this title.
(b) Except as provided in subsection (c)(3) of
this section, a fishing vessel, including a vessel
chartered part-time as a fish tender vessel, is exempt from section 3301(1), (7), (11), and (12) of
this title.

§ 3302

TITLE 46—SHIPPING

(c)(1) Except as provided in paragraph (3) of
this subsection, a fish processing vessel of not
more than 5,000 gross tons as measured under
section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section
14104 of this title is exempt from section 3301(1),
(6), (7), (11), and (12) of this title.
(2) Except as provided in paragraphs (3) and (4)
of this subsection, the following fish tender vessels are exempt from section 3301(1), (6), (7), (11),
and (12) of this title:
(A) A vessel of not more than 500 gross tons
as measured under section 14502 of this title or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title.
(B) A vessel engaged in the Aleutian trade
that is not more than 2,500 gross tons as measured under section 14302 of this title.
(3)(A) A fishing vessel or fish processing vessel
is exempt from section 3301(1), (6), and (7) of this
title when transporting cargo (including fisheries-related cargo) to or from a place in Alaska
if—
(i) that place does not receive weekly common carrier service by water from a place in
the United States;
(ii) that place receives such common carrier
service and the cargo is of a type not accepted
by that common carrier service; or
(iii) the cargo is proprietary cargo owned by
the owner of the vessel or any affiliated entity
or subsidiary.
(B) A fish tender vessel of not more than 500
gross tons as measured under section 14502 of
this title, or less than 500 gross tons as measured under section 14502 of this title, or is less
than 2,500 gross tons as measured under section
14302 of this title, which is qualified to engage in
the Aleutian trade is exempt from section
3301(1), (6), and (7) of this title when transporting cargo (including fisheries-related cargo) to
or from a place in Alaska outside the Aleutian
trade geographic area if—
(i) that place does not receive weekly common carrier service by water from a place in
the United States;
(ii) that place receives such common carrier
service and the cargo is of a type not accepted
by that common carrier service; or
(iii) the cargo is proprietary cargo owned by
the owner of the vessel or any affiliated entity
or subsidiary.
(C) In this paragraph, the term ‘‘proprietary
cargo’’ means cargo that—
(i) is used by the owner of the vessel or any
affiliated entity or subsidiary in activities directly related to fishing or the processing of
fish;
(ii) is consumed by employees of the owner
of the vessel or any affiliated entity or subsidiary who are engaged in fishing or in the
processing of fish; or
(iii) consists of fish or fish products harvested or processed by the owner of the vessel
or any affiliated entity or subsidiary.
(D) Notwithstanding the restrictions in subparagraph (B) of this paragraph, vessels qualify-

Page 42

ing under subparagraph (B) may transport cargo
(including fishery-related products) from a place
in Alaska receiving weekly common carrier
service by water to a final destination in Alaska
not receiving weekly service by water from common carriers.
(4) A fish tender vessel is exempt from section
3301(1), (6), and (7) of this title when engaged in
the Aleutian trade if the vessel—
(A) is not more than 500 gross tons as measured under section 14502 of this title, or less
than 500 gross tons as measured under section
14502 of this title, or is less than 2,500 gross
tons as measured under section 14302 of this
title;
(B) has an incline test performed by a marine surveyor; and
(C) has written stability instructions posted
on board the vessel.
(d)(1) A motor vessel of less than 150 gross tons
as measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary
under section 14104 of this title, constructed before August 23, 1958, is not subject to inspection
under section 3301(1) of this title if the vessel is
owned or demise chartered to a cooperative or
association that only transports cargo owned by
at least one of its members on a nonprofit basis
between places within the waters of—
(A) southeastern Alaska shoreward of the
Boundary Line; or
(B) southeastern Alaska shoreward of the
Boundary Line and—
(i) Prince Rupert, British Columbia; or
(ii) waters of Washington shoreward of the
Boundary Line, via sheltered waters, as defined in article I of the treaty dated December 9, 1933, between the United States and
Canada defining certain waters as sheltered
waters.
(2) The transportation authorized under this
subsection is limited to and from places not receiving annual weekly transportation service
from any part of the United States by an established water common carrier. However, the limitation does not apply to transporting cargo of a
character not accepted for transportation by
that carrier.
(e) A vessel laid up, dismantled, or out of commission is exempt from inspection.
(f) Section 3301(4) and (8) of this title does not
apply to an oceanographic research vessel because it is carrying scientific personnel.
(g)(1) Except when compliance with major
structural or major equipment requirements is
necessary to remove an especially hazardous
condition, an offshore supply vessel is not subject to regulations or standards for those requirements if the vessel—
(A) was operating as an offshore supply vessel before January 2, 1979; or
(B) was contracted for before January 2, 1979,
and entered into service as an offshore supply
vessel before October 6, 1980.
(2) After December 31, 1988, this subsection
does not apply to an offshore supply vessel that
is at least 20 years of age.
(h) An offshore supply vessel operating on January 1, 1979, under a certificate of inspection is-

Page 43

TITLE 46—SHIPPING

sued by the Secretary, is subject to an inspection standard or requirement only if the standard or requirement could have been prescribed
for the vessel under authority existing under
law on October 5, 1980.
(i)(1) The Secretary may issue a permit exempting a vessel from any part of the requirements of this part for vessels transporting
cargo, including bulk fuel, from one place in
Alaska to another place in Alaska only if the
vessel—
(A) is not more than 300 gross tons as measured under section 14502 of this title, or an alternate tonnage measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title;
(B) is in a condition that does not present an
immediate threat to the safety of life or the
environment; and
(C) was operating in the waters off Alaska as
of June 1, 1976, or the vessel is a replacement
for a vessel that was operating in the waters
off Alaska as of June 1, 1976, if the vessel being
replaced is no longer in service.
(2) Except in a situation declared to be an
emergency by the Secretary, a vessel operating
under a permit may not transport cargo to or
from a place if the cargo could be transported by
another commercial vessel that is reasonably
available and that does not require exemptions
to operate legally or if the cargo could be readily transported by overland routes.
(3) A permit may be issued for a specific voyage or for not more than one year. The permit
may impose specific requirements about the
amount or type of cargo to be carried, manning,
the areas or specific routes over which the vessel may operate, or other similar matters. The
duration of the permit and restrictions contained in the permit shall be at the sole discretion of the Secretary.
(4) A designated Coast Guard official who has
reason to believe that a vessel issued a permit is
in a condition or is operated in a manner that
creates an immediate threat to the safety of life
or the environment or is operated in a manner
that is inconsistent with the terms of the permit, may direct the master or individual in
charge to take immediate and reasonable steps
to safeguard life and the environment, including
directing the vessel to a port or other refuge.
(5) If a vessel issued a permit creates an immediate threat to the safety of life or the environment, or is operated in a manner inconsistent
with the terms of the permit or the requirements of paragraph (2) of this subsection, the
permit may be revoked. The owner, charterer,
managing operator, agent, master, or individual
in charge of a vessel issued a permit, that willfully permits the vessel to be operated, or operates, the vessel in a manner inconsistent with
the terms of the permit, is liable to the United
States Government for a civil penalty of not
more than $1,000.
(j) Notwithstanding another provision of this
chapter, the Secretary is not required to inspect
or prescribe regulations for a nautical school
vessel of not more than 15 gross tons as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of
this title as prescribed by the Secretary under
section 14104 of this title—

§ 3302

(1) when used in connection with a course of
instruction dealing with any aspect of maritime education or study; and
(2) operated by—
(A) the United States Merchant Marine
Academy; or
(B) a State maritime academy assisted
under chapter 515 of this title.
(k) Only the boiler, engine, and other operating machinery of a steam vessel that is a recreational vessel of not more than 65 feet overall
in length are subject to inspection under section
3301(9) of this title.
(l)(1) The Secretary may issue a permit exempting the following vessels from the requirements of this part for passenger vessels so long
as the vessels are owned by nonprofit organizations and operated as nonprofit memorials to
merchant mariners:
(A) The steamship John W. Brown (United
States official number 242209), owned by
Project Liberty Ship Baltimore, Incorporated,
located in Baltimore, Maryland.
(B) The steamship Lane Victory (United
States official number 248094), owned by the
United States Merchant Marine Veterans of
World War II, located in San Pedro, California.
(C) The steamship Jeremiah O’Brien (United
States official number 243622), owned by the
National Liberty Ship Memorial, Inc.
(D) The SS Red Oak Victory (United States
official number 249410), owned by the Richmond Museum Association, located in Richmond, California.
(E) The SS American Victory (United States
official number 248005), owned by Victory
Ship, Inc., of Tampa, Florida.
(F) The LST–325, owned by USS LST Ship
Memorial, Incorporated, located in Mobile,
Alabama.
(2) The Secretary may issue a permit for a specific voyage or for not more than one year. The
Secretary may impose specific requirements
about the number of passengers to be carried,
manning, the areas or specific routes over which
the vessel may operate, or other similar matters.
(3) A designated Coast Guard official who has
reason to believe that a vessel operating under
this subsection is in a condition or is operated
in a manner that creates an immediate threat to
life or the environment or is operated in a manner that is inconsistent with this section, may
direct the master or individual in charge to take
immediate and reasonable steps to safeguard life
and the environment, including directing the
vessel to a port or other refuge.
(m) A seagoing barge is not subject to inspection under section 3301(6) of this title if the vessel is unmanned and does not carry—
(1) a hazardous material as cargo; or
(2) a flammable or combustible liquid, including oil, in bulk.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 510; Pub. L.
98–364, title IV, § 402(3), July 17, 1984, 98 Stat. 445;
Pub. L. 99–307, § 1(3), (4), May 19, 1986, 100 Stat.
444; Pub. L. 101–595, title III, § 303(a), title VI,
§§ 602(b), 603(2), Nov. 16, 1990, 104 Stat. 2983, 2990,
2993; Pub. L. 103–206, title III, § 311, Dec. 20, 1993,
107 Stat. 2426; Pub. L. 104–324, title VII, § 711,

§ 3302

TITLE 46—SHIPPING

title XI, § 1110, Oct. 19, 1996, 110 Stat. 3935, 3969;
Pub. L. 106–65, div. C, title XXXVI, § 3604, Oct. 5,
1999, 113 Stat. 976; Pub. L. 107–295, title II, § 208,
Nov. 25, 2002, 116 Stat. 2098; Pub. L. 109–241, title
III, § 311, July 11, 2006, 120 Stat. 530; Pub. L.
109–304, § 15(11), Oct. 6, 2006, 120 Stat. 1703.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3302 ..............................................

46:367
46:390
46:391(e)
46:404
46:420
46:442

Section 3302 does three things. It makes clear that a
vessel included in one of the ten categories of vessels
subject to inspection is not necessarily excluded from
another category of vessel that is subject to inspection.
For example, a vessel inspected and certified as a small
passenger vessel would, when carrying oil or hazardous
materials in bulk as cargo or cargo residue, also have
to be inspected as a tank vessel. It makes it clear that
a vessel excluded by section 3302 from the requirements
of inspection in any one of the ten categories is not
necessarily excluded from inspection as a vessel in another category. This section also contains a number of
exemptions for certain classes of vessels and for those
vessels engaged in a specific trade that have been considered to be of a special circumstance.
AMENDMENTS
2006—Subsec. (b). Pub. L. 109–304, § 15(11)(A), inserted
comma after ‘‘fishing vessel’’.
Subsec. (c)(2). Pub. L. 109–241, § 311(a), amended par.
(2) generally. Prior to amendment, par. (2) read as follows: ‘‘Except as provided in paragraphs (3) and (4) of
this subsection, a fish tender vessel of not more than
500 gross tons as measured under section 14502 of this
title, or an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under
section 14104 of this title is exempt from section 3301(1),
(6), (7), (11), and (12) of this title.’’
Subsec. (c)(3)(B), (4)(A). Pub. L. 109–241, § 311(b), substituted ‘‘or less than 500 gross tons as measured under
section 14502 of this title, or is less than 2,500 gross tons
as measured under section 14302 of this title’’ for ‘‘or an
alternate tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104
of this title’’.
Subsec. (j)(2)(B). Pub. L. 109–304, § 15(11)(B), substituted ‘‘chapter 515 of this title’’ for ‘‘section 1304 of
the Merchant Marine Act, 1936 (46 App. U.S.C. 1295c)’’.
Subsec. (l)(1)(C). Pub. L. 109–304, § 15(11)(C), substituted ‘‘Inc.’’ for ‘‘Inc..’’.
2002—Subsec. (l)(1)(D) to (F). Pub. L. 107–295 added
subpars. (D) to (F).
1999—Subsec. (l)(1)(C). Pub. L. 106–65 substituted
‘‘owned by the National Liberty Ship Memorial, Inc.’’
for ‘‘owned by the United States Maritime Administration’’.
1996—Subsec. (b). Pub. L. 104–324, § 1110(1), substituted
‘‘Except as provided in subsection (c)(3) of this section,
a fishing vessel’’ for ‘‘A fishing vessel,’’.
Subsec. (c)(1). Pub. L. 104–324, §§ 711(1), 1110(2), substituted ‘‘Except as provided in paragraph (3) of this
subsection, a fish processing vessel’’ for ‘‘A fish processing vessel’’ and inserted ‘‘as measured under section
14502 of this title, or an alternate tonnage measured
under section 14302 of this title as prescribed by the
Secretary under section 14104 of this title’’ after ‘‘5,000
gross tons’’.
Subsec. (c)(2). Pub. L. 104–324, §§ 711(2), 1110(3), substituted ‘‘Except as provided in paragraphs (3) and (4) of
this subsection, a fish tender vessel’’ for ‘‘A fish tender
vessel’’ and inserted ‘‘as measured under section 14502
of this title, or an alternate tonnage measured under
section 14302 of this title as prescribed by the Secretary
under section 14104 of this title’’ after ‘‘500 gross tons’’.

Page 44

Subsec. (c)(3). Pub. L. 104–324, § 1110(4), amended par.
(3) generally. Prior to amendment, par. (3) read as follows: ‘‘A fishing, fish processing, or fish tender vessel of
not more than 500 gross tons is exempt from section
3301(1), (6), and (7) of this title if—
‘‘(A) when transporting cargo to or from a place in
Alaska—
‘‘(i) that place does not receive weekly common
carrier service by water from a place in the United
States; or
‘‘(ii) the cargo is of a type not accepted by that
common carrier service; or
‘‘(B) in the case of a fish tender vessel, the vessel is
not engaged in the Aleutian trade.’’
Subsec. (c)(4)(A). Pub. L. 104–324, § 711(3), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘500 gross tons’’.
Subsec. (d)(1). Pub. L. 104–324, § 711(4), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘150 gross tons’’.
Subsec. (i)(1)(A). Pub. L. 104–324, § 711(5), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘300 gross tons’’.
Subsec. (j). Pub. L. 104–324, § 711(6), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘15 gross tons’’.
1993—Subsec. (m). Pub. L. 103–206 added subsec. (m).
1990—Subsec. (c)(3), (4). Pub. L. 101–595, § 602(b), added
pars. (3) and (4).
Subsec. (j)(2)(B). Pub. L. 101–595, § 603(2), substituted
‘‘(46 App. U.S.C. 1295c)’’ for ‘‘(46 App. U.S.C. 1295(c))’’.
Subsec. (l). Pub. L. 101–595, § 303(a), added subsec. (l).
1986—Subsec. (i)(5). Pub. L. 99–307, § 1(3), substituted
‘‘charterer’’ for ‘‘charter’’.
Subsec. (k). Pub. L. 99–307, § 1(4), added subsec. (k).
1984—Subsec. (b). Pub. L. 98–364 amended subsec. (b)
generally, which prior to amendment read as follows:
‘‘A motor vessel engaged in fishing as a regular business, including oystering, clamming, crabbing, or the
kelp or sponge industry, is exempt from section 3301(1),
(4), and (7) of this title.’’
Subsec. (c). Pub. L. 98–364 amended subsec. (c) generally, which prior to amendment read as follows:
‘‘(1) Before January 1, 1988, a motor vessel is exempt
from section 3301(1), (4), and (7) of this title if the vessel
is not more than 500 gross tons and—
‘‘(A) is a cannery tender or a fishing tender in the
salmon or crab fisheries of Alaska, Oregon, and Washington; and
‘‘(B) only carries cargo to or from vessels in those
fisheries or a facility used in processing or assembling fishery products, or transports cannery or fishing personnel to or from operating locations.
‘‘(2) Before January 1, 1988, a vessel is exempt from
section 3301(1), (4), (6), and (7) of this title if the vessel
is not more than 5,000 gross tons and is used only in
processing and assembling fishery products in the fisheries of Alaska, Oregon, and Washington.’’
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 602(b) of Pub. L. 101–595 effective Nov. 16, 1990, except that requirements imposed by
subsec. (c)(4)(B) and (C), effective six months after Nov.
16, 1990, see section 602(f) of Pub. L. 101–595, set out as
a note under section 4502 of this title.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,

Page 45

§ 3304

TITLE 46—SHIPPING

and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
VESSELS REPAIRED OR RETROFITTED FOR MOBILE
TRADE FAIR PURPOSES DEEMED OUT OF COMMISSION
Pub. L. 100–418, title X, § 10003(b), Aug. 23, 1988, 102
Stat. 1573, provided that: ‘‘For one year after the date
of enactment of this Act [Aug. 23, 1988], a vessel that is
undergoing repair or retrofitting for use solely for mobile trade fair purposes is deemed to be out of commission under section 3302(e) of title 46, United States
Code, during the repair or retrofitting.’’
EXEMPTION OF CERTAIN FISHING AND FISH PROCESSING
VESSELS
Pub. L. 98–364, title IV, § 403, July 17, 1984, 98 Stat. 450,
as amended by Pub. L. 99–36, § 3, May 15, 1985, 99 Stat.
68; Pub. L. 101–225, title III, § 306, Dec. 12, 1989, 103 Stat.
1925, provided that:
‘‘(a) Except as provided in chapter 37 of title 46,
United States Code, and before January 1, 1991, a fishing, fish processing, or fish tender vessel, that is (1) not
more than 500 gross tons and (2) in operation, or contracted for purchase to be used as a vessel of this type,
before July 1, 1984, may transport cargo to or from a
place in Alaska not receiving weekly transportation
service from a port of the United States by an established water common carrier, except that the service
limitation does not apply to transporting cargo of a
type not accepted by that carrier.
‘‘(b) A fish processing vessel entered into service before January 1, 1988, and more than 1,600 gross tons or
entered into service after December 31, 1987, and having
more than 16 individuals on board primarily employed
in the preparation of fish or fish products is exempt
from section 8702(b) of title 46, United States Code,
until 18 months after the date of enactment of this Act
[July 17, 1984].
‘‘(c) As used in subsections (a) and (b) of this section,
the terms ‘fishing vessel’, ‘fish processing vessel’ and
‘fish tender vessel’ shall have the meaning given to
such terms in section 2101 of title 46, United States
Code.’’
OFFSHORE SUPPLY VESSELS; TRANSITION PERIOD FOR
COMPLIANCE WITH VESSEL INSPECTION PROVISIONS
Pub. L. 98–89, § 2(i), Aug. 26, 1983, 97 Stat. 599, provided
that: ‘‘Each offshore supply vessel described in section
3302(g) of title 46 (as enacted by section 1 of this Act),
that was registered with the Secretary of Transportation under section 4426a(7) of the Revised Statutes
[former 46 U.S.C. 404–1(7)] but that has not been inspected by the Secretary shall be held to be in compliance with all applicable vessel inspection laws pending
verification by actual inspection or until one year after
the date of enactment of this Act [Aug. 26, 1983], whichever is earlier.’’

§ 3303. Reciprocity for foreign vessels
Except as provided in chapter 37 and section
3505 of this title, a foreign vessel of a country
having inspection laws and standards similar to
those of the United States and that has an unexpired certificate of inspection issued by proper
authority of its respective country, is subject to
an inspection to ensure that the condition of the
vessel is as stated in its current certificate of inspection. A foreign country is considered to
have inspection laws and standards similar to
those of the United States when it is a party to
an International Convention for Safety of Life
at Sea to which the United States Government
is currently a party. A foreign certificate of inspection may be accepted as evidence of lawful

inspection only when presented by a vessel of a
country that has by its laws accorded to vessels
of the United States visiting that country the
same privileges accorded to vessels of that country visiting the United States.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 512; Pub. L.
102–587, title V, § 5210(a), Nov. 4, 1992, 106 Stat.
5076; Pub. L. 104–324, title XI, § 1111, Oct. 19, 1996,
110 Stat. 3970; Pub. L. 108–293, title IV, § 411(b),
Aug. 9, 2004, 118 Stat. 1046.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3303 ..............................................

46:362(a)
46:390c
46:391a(3)

Section 3303 acknowledges the international concept
of comity with respect to recognizing inspection laws
and standards for foreign flag vessels that are similar
to those of the United States. If a foreign nation is signatory to the International Convention for Safety of
Life at Sea, it is presumed to have similar standards.
However, reciprocity requirements for foreign flag tank
vessels are included in chapter 37. Subsection (b) provides for a mutual waiver of fees for the inspection of
foreign vessels carrying passengers from the United
States.
AMENDMENTS
2004—Pub. L. 108–293 inserted ‘‘and section 3505’’ after
‘‘chapter 37’’.
1996—Pub. L. 104–324 struck out subsec. (a) designation and subsec. (b) which read as follows: ‘‘The Secretary shall collect and pay to the Treasury the same
fees for the inspection of foreign vessels carrying passengers from the United States that a foreign country
charges vessels of the United States trading to the
ports of that country. The Secretary may waive at any
time the collection of the fees on notice of the proper
authorities of any country concerned that the collection of fees for the inspection of vessels of the United
States has been discontinued.’’
1992—Subsec. (a). Pub. L. 102–587, in first sentence,
struck out ‘‘only’’ after ‘‘is subject’’ and substituted
‘‘the condition of the vessel is’’ for ‘‘the condition of
the vessel’s propulsion equipment and lifesaving equipment are’’.
INTERNATIONAL CONVENTION FOR SAFETY OF LIFE AT
SEA
For International Conventions for the Safety of Life
at Sea to which the United States has been a party, see
section 1602 of Title 33, Navigation and Navigable Waters, and notes thereunder.

§ 3304. Transporting individuals in addition to
crew
(a) A documented vessel transporting cargo
that transports not more than 12 individuals in
addition to the crew on international voyages,
or not more than 16 individuals in addition to
the crew on other voyages, is not subject to inspection as a passenger vessel or a small passenger vessel if the vessel is otherwise subject to
inspection under this chapter.
(b) Except when subsection (e) of this section
applies, before an individual in addition to the
crew is transported on a vessel as permitted by
this section, the owner, charterer, managing operator, agent, master, or individual in charge of
the vessel first shall notify the individual of the
presence on board of dangerous articles as defined by law, and of other conditions or circum-

§ 3305

TITLE 46—SHIPPING

stances that would constitute a risk of safety to
the individual on board.
(c) A privilege authorized by this section applies to a vessel of a foreign country that affords
a similar privilege to vessels of the United
States in trades not restricted to vessels under
its own flag.
(d) A fishing, fish processing, or fish tender
vessel that transports not more than 12 individuals employed in the fishing industry in addition to the crew is not subject to inspection as
a passenger or small passenger vessel.
(e) The Secretary may by regulation allow individuals in addition to the crew to be transported in an emergency or under section 2304 of
this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 513; Pub. L.
98–364, title IV, § 402(4), July 17, 1984, 98 Stat. 446;
Pub. L. 99–307, § 1(5)(A), May 19, 1986, 100 Stat.
444.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3304 ..............................................

46:390–393
46:882

Section 3304 permits the carriage of not more than 12
individuals in addition to the crew on international
voyages or not more than 16 individuals in addition to
the crew on other voyages without subjecting a documented vessel carrying cargo to the inspection requirements of a passenger vessel. This section permits the
bulk of vessels subject to the International Convention
for Safety of Life at Sea to carry up to 12 passengers
and to permit other cargo vessels, primarily those engaged in the coastwise trade, to carry up to 16 passengers without being categorized as passenger vessels.
It also requires that these individuals be notified of the
presence of dangerous articles or other conditions or
circumstances that constitute a risk of safety. This is
of prime importance on tank vessels that carry flammable or hazardous cargoes.
AMENDMENTS
1986—Pub. L. 99–307, § 1(5)(A)(i), substituted ‘‘Transporting’’ for ‘‘Carrying’’ in section catchline.
Subsec. (a). Pub. L. 99–307, § 1(5)(A)(ii), substituted
‘‘transporting cargo that transports’’ for ‘‘carrying
cargo that carries’’ and inserted ‘‘if the vessel is otherwise subject to inspection under this chapter’’.
Subsec. (b). Pub. L. 99–307, § 1(5)(A)(iii), substituted
‘‘Except when subsection (e) of this section applies, before’’ for ‘‘Before’’ and ‘‘transported’’ for ‘‘carried’’.
Subsec. (c). Pub. L. 99–307, § 1(5)(A)(iv), substituted ‘‘A
privilege’’ for ‘‘The privilege’’.
Subsec. (e). Pub. L. 99–307, § 1(5)(A)(v), added subsec.
(e).
1984—Subsec. (d). Pub. L. 98–364 added subsec. (d).

§ 3305. Scope and standards of inspection
(a)(1) The inspection process shall ensure that
a vessel subject to inspection—
(A) is of a structure suitable for the service
in which it is to be employed;
(B) is equipped with proper appliances for
lifesaving, fire prevention, and firefighting;
(C) has suitable accommodations for the
crew, sailing school instructors, and sailing
school students, and for passengers on the vessel if authorized to carry passengers;
(D) has an adequate supply of potable water
for drinking and washing by passengers and
crew;
(E) is in a condition to be operated with
safety to life and property; and

Page 46

(F) complies with applicable marine safety
laws and regulations.
(2) In determining the adequacy of the supply
of potable water under paragraph (1)(D), the Secretary shall consider—
(A) the size and type of vessel;
(B) the number of passengers or crew on
board;
(C) the duration and routing of voyages; and
(D) guidelines for potable water recommended by the Centers for Disease Control
and Prevention and the Public Health Service.
(b) If an inspection, or examination under section 3308 of this title, reveals that a life preserver, lifesaving device, or firehose is defective
and incapable of being repaired, the owner or
master shall destroy the life preserver, lifesaving device, or firehose in the presence of the official conducting the inspection or examination.
(c) A nautical school vessel operated by a civilian nautical school or by an educational institution under section 558 of title 40 shall be inspected like a small passenger vessel or a passenger vessel, depending on its tonnage.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 513; Pub. L.
99–36, § 1(a)(1), May 15, 1985, 99 Stat. 67; Pub. L.
99–640, § 13(e), Nov. 10, 1986, 100 Stat. 3551; Pub. L.
107–217, § 3(m)(2), Aug. 21, 2002, 116 Stat. 1302;
Pub. L. 108–293, title IV, § 416, Aug. 9, 2004, 118
Stat. 1047; Pub. L. 109–241, title IX, § 901(f), July
11, 2006, 120 Stat. 564.)
HISTORICAL AND REVISION NOTES
Revised section
3305 ..............................................

Source section (U.S. Code)
46:369
46:390a
46:391
46:392
46:395
46:404–1
46:405
46:406
46:407
46:408
46:660a
46:881

Section 3305 consolidates, at one place, the basic
scope of coverage of the inspection process. It is to be
noted that the time difference in enactment of various
statutes has resulted in some anomalies. Thus, for example, R.S. 4417 (46 U.S.C. 391) which had originally set
periods of inspection and vested authority in ‘‘local inspectors’’ was expanded over the years to provide the
base for inspection of certain classes of vessels as well
as setting out the periods and scope. The distillation of
inspection objectives and standards in later laws and
the transfer of all functions of separately created bureaus and functionaries to the Coast Guard permit this
consolidation. There are those who have a desire to see
the scope and standards of inspection be more specific
in law similar to those presently applicable to boilers
and boiler plating that predate 1871. The Committee believes this serves no useful purpose since the specifics
are either antiquated or too limiting and have, in fact,
been superceded by the statutorily authorized adoption
of various industrial specifications, standards, and
codes by the Coast Guard. These include the American
Bureau of Shipping (ABS), American Society of Mechanical Engineers (ASME), American National Standards Institute (ANSI), American Society for Testing
and Materials (ASTM), American Welding Society
(AWS), Underwriters Laboratories (UL), and many others. In addition, Coast Guard regulations must also implement and conform to the numerous international
maritime safety treaties to which the United States is

Page 47

TITLE 46—SHIPPING

signatory. The Committee expects that the regulatory
flexibility being provided will not reduce the present
vessel inspection requirements that have been historically developed.
Section 3305(a) establishes the statutory scope of the
Coast Guard’s vessel inspection authority and duty.
The inspection process shall ensure that a vessel is of
suitable structure, equipment, and accommodations, is
maintained in an operating condition consistent with
safety of life and property, and complies with applicable marine safety laws and regulations.
Subsection (b) requires that defective life preservers
and firehose be destroyed in the presence of the inspecting official, normally a qualified Coast Guard marine inspector. The Committee believes that if this
equipment is defective for use on an inspected vessel, it
should be destroyed so that it cannot be used on an uninspected or recreational vessel.
Subsection (c) provides flexibility in the inspection of
various sizes of nautical school vessels.
AMENDMENTS
2006—Subsec. (a)(2). Pub. L. 109–241 realigned margins.
2004—Subsec. (a). Pub. L. 108–293, § 416(b), designated
existing provisions as par. (1), redesignated former
pars. (1) to (6) as subpars. (A) to (F), respectively, of
par. (1), and added par. (2).
Subsec. (a)(4) to (6). Pub. L. 108–293, § 416(a), added
par. (4) and redesignated former pars. (4) and (5) as (5)
and (6), respectively.
2002—Subsec. (c). Pub. L. 107–217 substituted ‘‘section
558 of title 40’’ for ‘‘section 13 of the Coast Guard Authorization Act of 1986’’.
1986—Subsec. (c). Pub. L. 99–640 inserted ‘‘or by an
educational institution under section 13 of the Coast
Guard Authorization Act of 1986’’.
1985—Subsec. (b). Pub. L. 99–36 substituted ‘‘lifesaving’’ and ‘‘life preserver, lifesaving device, or firehose’’
for ‘‘life-saving’’ and ‘‘life preserver or firehose’’, respectively.

§ 3306. Regulations
(a) To carry out this part and to secure the
safety of individuals and property on board vessels subject to inspection, the Secretary shall
prescribe necessary regulations to ensure the
proper execution of, and to carry out, this part
in the most effective manner for—
(1) the design, construction, alteration, repair, and operation of those vessels, including
superstructures, hulls, fittings, equipment, appliances, propulsion machinery, auxiliary machinery, boilers, unfired pressure vessels, piping, electric installations, and accommodations for passengers and crew, sailing school
instructors, and sailing school students;
(2) lifesaving equipment and its use;
(3) firefighting equipment, its use, and precautionary measures to guard against fire;
(4) inspections and tests related to paragraphs (1), (2), and (3) of this subsection; and
(5) the use of vessel stores and other supplies
of a dangerous nature.
(b)(1) Equipment and material subject to regulation under this section may not be used on any
vessel without prior approval of the Secretary.
(2) Except with respect to use on a public vessel, the Secretary may treat an approval of
equipment or materials by a foreign government
as approval by the Secretary for purposes of
paragraph (1) if the Secretary determines that—
(A) the design standards and testing procedures used by that government meet the requirements of the International Convention
for the Safety of Life at Sea, 1974;

§ 3306

(B) the approval of the equipment or material by the foreign government will secure the
safety of individuals and property on board
vessels subject to inspection; and
(C) for lifesaving equipment, the foreign government—
(i) has given equivalent treatment to approvals of lifesaving equipment by the Secretary; and
(ii) otherwise ensures that lifesaving
equipment approved by the Secretary may
be used on vessels that are documented and
subject to inspection under the laws of that
country.
(c) In prescribing regulations for sailing school
vessels, the Secretary shall consult with representatives of the private sector having experience in the operation of vessels likely to be certificated as sailing school vessels. The regulations shall—
(1) reflect the specialized nature of sailing
school vessel operations, and the character,
design, and construction of vessels operating
as sailing school vessels; and
(2) include requirements for notice to sailing
school instructors and sailing school students
about the specialized nature of sailing school
vessels and applicable safety regulations.
(d) In prescribing regulations for nautical
school vessels operated by the United States
Merchant Marine Academy or by a State maritime academy (as defined in section 51102 of this
title), the Secretary shall consider the function,
purpose, and operation of the vessels, their
routes, and the number of individuals who may
be carried on the vessels.
(e) When the Secretary finds it in the public
interest, the Secretary may suspend or grant exemptions from the requirements of a regulation
prescribed under this section related to lifesaving and firefighting equipment, muster lists,
ground tackle and hawsers, and bilge systems.
(f) In prescribing regulations for offshore supply vessels, the Secretary shall consider the
characteristics, methods of operation, and the
nature of the service of offshore supply vessels.
(g) In prescribing regulations for fish processing or fish tender vessels, the Secretary shall
consult with representatives of the private sector having experience in the operation of these
vessels. The regulations shall reflect the specialized nature and economics of fish processing or
fish tender vessel operations and the character,
design, and construction of fish processing or
fish tender vessels.
(h) The Secretary shall establish appropriate
structural fire protection, manning, operating,
and equipment requirements for vessels of at
least 100 gross tons but less than 300 gross tons
as measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary
under section 14104 of this title carrying not
more than 150 passengers on domestic voyages,
which meet the eligibility criteria of section
2113(4) of this title.
(i) The Secretary shall establish appropriate
structural fire protection, manning, operating,
and equipment requirements for former public
vessels of the United States of at least 100 gross

§ 3306

TITLE 46—SHIPPING

tons but less that 500 gross tons as measured
under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104 of this title carrying not more than
150 passengers on domestic voyages, which meet
the eligibility criteria of section 2113(5) of this
title.
(j) The Secretary may establish by regulation
a safety management system appropriate for the
characteristics, methods of operation, and nature of service of towing vessels.
(k)(1) Each vessel of the United States that is
constructed under a contract entered into after
the date of enactment of the Maritime Safety
Act of 2010, or that is delivered after January 1,
2011, with an aggregate capacity of 600 cubic meters or more of oil fuel, shall comply with the
requirements of Regulation 12A under Annex I
to the Protocol of 1978 relating to the International Convention for the Prevention of Pollution from Ships, 1973, entitled ‘‘Oil Fuel Tank
Protection’’.
(2) The Secretary may prescribe regulations to
apply the requirements described in Regulation
12A to vessels described in paragraph (1) that are
not otherwise subject to that convention. Any
such regulation shall be considered to be an interpretive rule for the purposes of section 553 of
title 5.
(3) In this subsection the term ‘‘oil fuel’’
means any oil used as fuel in connection with
the propulsion and auxiliary machinery of the
vessel in which such oil is carried.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 513; Pub. L.
98–364, title IV, § 402(5), July 17, 1984, 98 Stat. 446;
Pub. L. 103–206, title V, § 512(a), Dec. 20, 1993, 107
Stat. 2442; Pub. L. 104–324, title VI, § 604(a), (c),
title VII, § 712, Oct. 19, 1996, 110 Stat. 3930, 3931,
3936; Pub. L. 108–293, title IV, § 415(b), Aug. 9,
2004, 118 Stat. 1047; Pub. L. 109–304, § 15(12), Oct.
6, 2006, 120 Stat. 1703; Pub. L. 111–281, title VI,
§ 612, Oct. 15, 2010, 124 Stat. 2970.)
HISTORICAL AND REVISION NOTES
Revised section
3306 ..............................................

Source section (U.S. Code)
46:366
46:369
46:375
46:390b
46:392
46:404
46:408
46:411
46:412
46:416
46:420
46:445
46:459
46:473
46:477
46:478
46:479
46:481
46:482
46:483
46:489
46:526p
46:1295f(c)

Section 3306 contains broad authority to prescribe
regulations for the proper inspection and certification
of vessels. It provides regulatory flexibility for meeting
technological changes. The section also permits flexibility in prescribing regulations for nautical school
vessels operated by the United States Merchant Marine
Academy or by a State maritime academy. The Secretary may suspend or grant exemptions to certain lim-

Page 48

ited inspection requirements when the Secretary finds
that this is necessary in the public interest. It also contains the requirement that in regulating offshore supply vessels consideration must be given to the special
nature of their operations.
REFERENCES IN TEXT
The date of enactment of the Maritime Safety Act of
2010, referred to in subsec. (k)(1), is the date of enactment of title VI of Pub. L. 111–281, which was approved
Oct. 15, 2010.
AMENDMENTS
2010—Subsec. (k). Pub. L. 111–281 added subsec. (k).
2006—Subsec. (d). Pub. L. 109–304 substituted ‘‘section
51102 of this title’’ for ‘‘section 1302(3) of the Merchant
Marine Act, 1936 (46 App. U.S.C. 1295a(3))’’.
2004—Subsec. (j). Pub. L. 108–293 added subsec. (j).
1996—Subsec. (a)(4). Pub. L. 104–324, § 604(c), substituted ‘‘paragraphs (1), (2), and (3)’’ for ‘‘clauses
(1)–(3)’’.
Subsec. (b). Pub. L. 104–324, § 604(a), amended subsec.
(b) generally. Prior to amendment, subsec. (b) read as
follows: ‘‘Equipment subject to regulation under this
section may not be used on any vessel without prior approval as prescribed by regulation.’’
Subsec. (h). Pub. L. 104–324, § 712(1), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘300 gross tons’’.
Subsec. (i). Pub. L. 104–324, § 712(2), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘500 gross tons’’.
1993—Subsecs. (h), (i). Pub. L. 103–206 added subsecs.
(h) and (i).
1984—Subsec. (g). Pub. L. 98–364 added subsec. (g).
REGULATIONS
Pub. L. 103–206, title V, § 512(b), (c), Dec. 20, 1993, 107
Stat. 2442, provided that:
‘‘(b) The Secretary of Transportation shall, within
twenty-four months of the date of enactment of this
Act [Dec. 20, 1993], prescribe regulations establishing
the structural fire protection, manning, operating, and
equipment requirements for vessels which meet the requirements of subsections (h) and (i) of section 3306 of
title 46, United States Code, as amended by this Act.
‘‘(c) Before the Secretary of Transportation prescribes regulations under subsections (h) and (i) of section 3306 of title 46, United States Code, as amended by
this Act, the Secretary may prescribe the route, service, manning, and equipment for those vessels based on
existing passenger vessel and small passenger vessel
regulations.’’
TOWING VESSELS
Pub. L. 111–281, title VII, § 701(c), Oct. 15, 2010, 124
Stat. 2980, provided that: ‘‘No later than 90 days after
the date of enactment of this Act [Oct. 15, 2010], the
Secretary shall issue a notice of proposed rulemaking
regarding inspection requirements for towing vessels
required under section 3306(j) of title 46, United States
Code. The Secretary shall issue a final rule pursuant to
that rulemaking no later than 1 year after the date of
enactment of this Act.’’
[‘‘Secretary’’ as used in section 701(c) of Pub. L.
111–281, set out above, probably means the Secretary of
the department in which the Coast Guard is operating,
see section 701(a)(1) of Pub. L. 111–281, set out as a note
under section 1321 of Title 33, Navigation and Navigable
Waters.]
FOREIGN APPROVALS
Pub. L. 104–324, title VI, § 604(b), Oct. 19, 1996, 110 Stat.
3931, provided that: ‘‘The Secretary of Transportation,
in consultation with other interested Federal agencies,

Page 49

§ 3309

TITLE 46—SHIPPING

shall work with foreign governments to have those governments approve the use of the same equipment and
materials on vessels documented under the laws of
those countries that the Secretary requires on United
States documented vessels.’’
INTERNATIONAL CONVENTION FOR SAFETY OF LIFE AT
SEA
For International Conventions for the Safety of Life
at Sea to which the United States has been a party, see
section 1602 of Title 33, Navigation and Navigable Waters, and notes thereunder.

§ 3307. Frequency of inspection
Each vessel subject to inspection under this
part shall undergo an initial inspection for certification before being put into service. After
being put into service—
(1) each passenger vessel, nautical school
vessel, and small passenger vessel allowed to
carry more than 12 passengers on a foreign
voyage shall be inspected at least once a year;
and
(2) any other vessel shall be inspected at
least once every 5 years.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 514; Pub. L.
104–324, title VI, § 605(a), Oct. 19, 1996, 110 Stat.
3931.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3307(1) ..........................................
3307(2) ..........................................
3307(3) ..........................................

46:391(c)
46:1295f(c)
46:390a(a)
46:404–1(6)(i)
46:391(b)
46:392(b)
46:404–1(6)(ii)

Section 3307 requires each vessel subject to inspection
to undergo an initial inspection prior to being placed in
service. This is normally started during the construction or reconstruction phase and is a continuing process until final certification for operation in a particular trade. Subsequent periodic inspections are also required for various types of vessels. It is to be noted
that a freight vessel of less than 100 gross tons shall be
inspected at 3 year intervals while the larger freight
vessel has a 2 year inspection period. This is being done
to retain the existing procedure of issuing 3 year certificates of inspection to smaller vessels, however, this
does not prevent periodic inspections or examinations
at intervening periods.
AMENDMENTS
1996—Par. (1). Pub. L. 104–324, § 605(a)(1), substituted
‘‘, nautical school vessel, and small passenger vessel allowed to carry more than 12 passengers on a foreign
voyage’’ for ‘‘and nautical school vessel’’ and inserted
‘‘and’’ at end.
Pars. (2), (3). Pub. L. 104–324, § 605(a)(2), (3), redesignated par. (3) as (2), substituted ‘‘5 years’’ for ‘‘2 years’’,
and struck out former par. (2) which read as follows:
‘‘each small passenger vessel, freight vessel or offshore
supply vessel of less than 100 gross tons, and sailing
school vessel shall be inspected at least once every 3
years; and’’.

§ 3308. Examinations
In addition to inspections required by section
3307 of this title, the Secretary shall examine or
have examined—
(1) each vessel subject to inspection at proper times to ensure compliance with law and
regulations; and
(2) crewmember accommodations on each
vessel subject to inspection at least once a

month or when the vessel enters United States
ports to ensure that the accommodations are—
(A) of the size required by law and regulations;
(B) properly ventilated and in a clean and
sanitary condition; and
(C) equipped with proper plumbing and mechanical appliances required by law and regulations, and the appliances are in good
working condition.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 514; Pub. L.
104–324, title VI, § 603(c), Oct. 19, 1996, 110 Stat.
3930.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3308 ..............................................

46:435
46:660a
46:660b

Section 3308 requires the Secretary to carry out additional inspections as might be necessary to ensure compliance with applicable laws and regulations, and to ensure that accommodations are maintained in a sanitary
condition and that all appliances are in good working
order.
AMENDMENTS
1996—Pub. L. 104–324 inserted ‘‘or have examined’’
after ‘‘examine’’ in introductory provisions.

§ 3309. Certificate of inspection
(a) When an inspection under section 3307 of
this title has been made and a vessel has been
found to be in compliance with the requirements
of law and regulations, a certificate of inspection, in a form prescribed by the Secretary,
shall be issued to the vessel.
(b) The Secretary may issue a temporary certificate of inspection in place of a regular certificate of inspection issued under subsection (a)
of this section.
(c) At least 30 days before the current certificate of inspection issued to a vessel under subsection (a) of this section expires, the owner,
charterer, managing operator, agent, master, or
individual in charge of the vessel shall submit to
the Secretary in writing a notice that the vessel—
(1) will be required to be inspected; or
(2) will not be operated so as to require an
inspection.
(d) A certificate of inspection issued under
this section shall be signed by the senior Coast
Guard member or civilian employee who inspected the vessel, in addition to the officer in
charge of marine inspection.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 515; Pub. L.
98–498, title II, § 211(a), Oct. 19, 1984, 98 Stat. 2303;
Pub. L. 104–324, title VI, § 606, Oct. 19, 1996, 110
Stat. 3931; Pub. L. 111–281, title V, § 522(c), Oct.
15, 2010, 124 Stat. 2957.)
HISTORICAL AND REVISION NOTES
Revised section
3309 ..............................................

Source section (U.S. Code)
46:390c
46:391a(8)
46:395(d)
46:399

Section 3309 provides for the issuance of a certificate
of inspection that attests to the fact that the vessel has

§ 3310

TITLE 46—SHIPPING

been found to be in compliance with the applicable
maritime safety laws and regulations. Under this provision the Coast Guard can issue a temporary certificate
of inspection upon compliance with the applicable laws
or regulations to facilitate the preparation, processing,
and forwarding of the regular certificate of inspection
to the vessel. A temporary certificate does not imply
less than satisfactory compliance.
AMENDMENTS
2010—Subsec. (d). Pub. L. 111–281 added subsec. (d).
1996—Subsec. (c). Pub. L. 104–324 struck out ‘‘(but not
more than 60 days)’’ after ‘‘30 days’’ in introductory
provisions.
1984—Subsec. (c). Pub. L. 98–498 added subsec. (c).
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–498 effective 180 days after
Oct. 19, 1984, see section 214 of Pub. L. 98–498, set out as
an Effective Date note under section 2306 of this title.

§ 3310. Records of certification
The Secretary shall keep records of certificates of inspection of vessels and of all acts in
the examination and inspection of vessels,
whether of approval or disapproval.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 515.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3310 ..............................................

46:414

Section 3310 contains the requirement for maintaining inspection records.

§ 3311. Certificate of inspection required
(a) Except as provided in subsection (b), a vessel subject to inspection under this part may not
be operated without having on board a certificate of inspection issued under section 3309 of
this title.
(b) The Secretary may direct the owner, charterer, managing operator, agent, master, or individual in charge of a vessel subject to inspection under this chapter and not having on board
a certificate of inspection—
(1) to have the vessel proceed to mooring and
remain there until a certificate of inspection
is issued;
(2) to take immediate steps necessary for the
safety of the vessel, individuals on board the
vessel, or the environment; or
(3) to have the vessel proceed to a place to
make repairs necessary to obtain a certificate
of inspection.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 515; Pub. L.
98–498, title II, § 211(b), Oct. 19, 1984, 98 Stat.
2304.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3311 ..............................................

46:390c
46:395
46:399

Page 50

section (b), a vessel’’ for ‘‘A vessel’’, struck out ‘‘valid’’
before ‘‘certificate of inspection’’, and added subsec.
(b).

§ 3312. Display of certificate of inspection
The certificate of inspection issued to a vessel
under section 3309 of this title shall be displayed, suitably framed, in a conspicuous place
on the vessel. When it is not practicable to so
display the certificate, it shall be carried in the
manner prescribed by regulation.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 515.)
HISTORICAL AND REVISION NOTES
Revised section
3312 ..............................................

Section 3312 requires the conspicuous display of the
certificate of inspection to provide notice that the vessel is in compliance with applicable maritime safety
laws and regulations. The section also applies to the
posting of the temporary certificate of inspection.

§ 3313. Compliance with certificate of inspection
(a) During the term of a vessel’s certificate of
inspection, the vessel must be in compliance
with its conditions, unless relieved by a suspension or an exemption granted under section
3306(e) of this title.
(b) When a vessel is not in compliance with its
certificate or fails to meet a standard prescribed
by this part or a regulation prescribed under
this part—
(1) the owner, charterer, managing operator,
agent, master, or individual in charge shall be
ordered in writing to correct the noted deficiencies promptly;
(2) the Secretary may permit any repairs to
be made at a place most convenient to the
owner, charterer, or managing operator when
the Secretary decides the repairs can be made
with safety to those on board and the vessel;
(3) the vessel may be required to cease operating at once; and
(4) if necessary, the certificate shall be suspended or revoked.
(c) The vessel’s certificate of inspection shall
be revoked if a condition unsafe to life that is
ordered to be corrected under this section is not
corrected at once.
(d) The owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
whose certificate has been suspended or revoked
shall be given written notice immediately of the
suspension or revocation. The owner or master
may appeal to the Secretary the suspension or
revocation within 30 days of receiving the notice, as provided by regulations prescribed by
the Secretary.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 515.)
HISTORICAL AND REVISION NOTES
Revised section

Section 3311 prohibits the operation of a vessel subject to inspection without having on board a valid certificate of inspection.
AMENDMENTS
1984—Pub. L. 98–498 designated existing provisions as
subsec. (a), substituted ‘‘Except as provided in sub-

Source section (U.S. Code)
46:400

3313 ..............................................

Source section (U.S. Code)
46:390c
46:391a(8)
46:435

Section 3313 requires a vessel to be maintained in a
condition so as to always be in compliance with the applicable laws and regulations. Here the master, owner,

Page 51

§ 3316

TITLE 46—SHIPPING

or other responsible party is required to maintain the
vessel to inspection standards and to correct all deficiencies observed. When a vessel is not in compliance
with its certificate the responsible parties shall be ordered in writing to correct the deficiencies promptly.
The section provides flexibility as to when and where
these deficiencies may be corrected consistent with the
safety of the vessel and crew. The section provides authority to require the vessel to cease operating or, if
necessary, to suspend or revoke its certificate of inspection when found not to be in compliance with its
certificate or regulations. The owner or master, or
other responsible party must be given written notice
and may appeal this action within 30 days of receiving
the notice.

§ 3314. Expiration of certificate of inspection
(a) If the certificate of inspection of a vessel
expires when the vessel is on a foreign voyage,
the vessel may complete the voyage to a port of
the United States within 30 days of the expiration of the certificate without incurring the
penalties for operating without a certificate of
inspection.
(b) If the certificate of inspection would expire
within 15 days of sailing on a foreign voyage
from a United States port, the vessel shall secure a new certificate of inspection before sailing, unless the voyage is scheduled to be completed prior to the expiration date of the certificate. If a voyage scheduled to be completed in
that time is not so completed, the applicable
penalties may be enforced unless the failure to
meet the schedule was beyond the control of the
owner, charterer, managing operator, agent,
master, or individual in charge of the vessel.
(c) When the certificate of inspection of a foreign vessel carrying passengers, operated on a
regularly established line, expires at sea after
leaving the country to which it belongs or when
the vessel is in the United States, the Secretary
may permit the vessel to sail on its regular
route without further inspection than would
have been required had the certificate not expired. This permission applies only when the
vessel will be regularly inspected and issued a
certificate before the vessel’s next return to the
United States.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 516.)
HISTORICAL AND REVISION NOTES
Revised section
3314 ..............................................

Source section (U.S. Code)
46:362
46:399

Section 3314 contains the procedures for when a vessel’s certificate of inspection expires while on a foreign
voyage.

§ 3315. Disclosure of defects and protection of informants
(a) Each individual licensed under part E of
this subtitle shall assist in the inspection or examination under this part of the vessel on which
the individual is serving, and shall point out defects and imperfections known to the individual
in matters subject to regulations and inspection. The individual also shall make known to
officials designated to enforce this part, at the
earliest opportunity, any marine casualty producing serious injury to the vessel, its equipment, or individuals on the vessel.

(b) An official may not disclose the name of an
individual providing information under this section, or the source of the information, to a person except a person authorized by the Secretary.
An official violating this subsection is liable to
disciplinary action under applicable law.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 516.)
HISTORICAL AND REVISION NOTES
Revised section
3315 ..............................................

Source section (U.S. Code)
46:234

Section 3315 requires an individual holding a license
issued by the Coast Guard to assist inspection authorities and to make defects and imperfections known to
those authorities. Anyone licensed also has a duty to
report any marine casualty producing serious injury to
the vessel, its equipment, or individuals on board the
vessel. These licensed individuals who have this statutorily imposed duty to disclose are also protected by
prohibiting any government official from disclosing the
identity or source of the information except as authorized by the Secretary.

§ 3316. Classification societies
(a) Each department, agency, and instrumentality of the United States Government shall
recognize the American Bureau of Shipping as
its agent in classifying vessels owned by the
Government and in matters related to classification, as long as the Bureau is maintained as an
organization having no capital stock and paying
no dividends. The Secretary and the Secretary
of Transportation each shall appoint one representative (except when the Secretary is the
Secretary of Transportation, in which case the
Secretary shall appoint both representatives)
who shall represent the Government on the executive committee of the Bureau. The Bureau
shall agree that the representatives shall be accepted by it as active members of the committee. The representatives shall serve without
compensation, except for necessary traveling expenses.
(b)(1) The Secretary may delegate to the
American Bureau of Shipping or another classification society recognized by the Secretary as
meeting acceptable standards for such a society,
for a vessel documented or to be documented
under chapter 121 of this title, the authority
to—
(A) review and approve plans required for issuing a certificate of inspection required by
this part;
(B) conduct inspections and examinations;
and
(C) issue a certificate of inspection required
by this part and other related documents.
(2) The Secretary may make a delegation
under paragraph (1) to a foreign classification
society only—
(A) to the extent that the government of the
foreign country in which the society is headquartered delegates authority and provides access to the American Bureau of Shipping to inspect, certify, and provide related services to
vessels documented in that country; and
(B) if the foreign classification society has
offices and maintains records in the United
States.

§ 3316

TITLE 46—SHIPPING

(3) When an inspection or examination has
been delegated under this subsection, the Secretary’s delegate—
(A) shall maintain in the United States complete files of all information derived from or
necessarily connected with the inspection or
examination for at least 2 years after the vessel ceases to be certified; and
(B) shall permit access to those files at all
reasonable times to any officer, employee, or
member of the Coast Guard designated—
(i) as a marine inspector and serving in a
position as a marine inspector; or
(ii) in writing by the Secretary to have access to those files.
(c)(1) A classification society (including an
employee or agent of that society) may not review, examine, survey, or certify the construction, repair, or alteration of a vessel in the
United States unless the society has applied for
approval under this subsection and the Secretary has reviewed and approved that society
with respect to the conduct of that society
under paragraph (2).
(2) The Secretary may approve a person for
purposes of paragraph (1) only if the Secretary
determines that—
(A) the vessels surveyed by the person while
acting as a classification society have an adequate safety record; and
(B) the person has an adequate program to—
(i) develop and implement safety standards
for vessels surveyed by the person;
(ii) make the safety records of the person
available to the Secretary in an electronic
format;
(iii) provide the safety records of a vessel
surveyed by the person to any other classification society that requests those records
for the purpose of conducting a survey of the
vessel; and
(iv) request the safety records of a vessel
the person will survey from any classification society that previously surveyed the
vessel.
(d)(1) The Secretary may delegate to the
American Bureau of Shipping or another classification society recognized by the Secretary as
meeting acceptable standards for such a society,
for a United States offshore facility, the authority to—
(A) review and approve plans required for issuing a certificate of inspection, a certificate
of compliance, or any other certification and
related documents issued by the Coast Guard
pursuant to regulations issued under section
30 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1356); and
(B) conduct inspections and examinations.
(2) The Secretary may make a delegation
under paragraph (1) to a foreign classification
society only if—
(A) the foreign society has offices and maintains records in the United States; and
(B)(i) the government of the foreign country
in which the foreign society is headquartered
delegates that authority to the American Bureau of Shipping; or
(ii) the Secretary has entered into an agreement with the government of the foreign

Page 52

country in which the foreign society is headquartered that—
(I) ensures the government of the foreign
country will accept plan review, inspections,
or examinations conducted by the American
Bureau of Shipping and provide equivalent
access to inspect, certify, and provide related services to offshore facilities located in
that country or operating under the authority of that country; and
(II) is in full accord with principles of reciprocity in regards to any delegation contemplated by the Secretary under paragraph
(1).
(3) If an inspection or examination is conducted under authority delegated under this
subsection, the person to which the authority
was delegated—
(A) shall maintain in the United States complete files of all information derived from or
necessarily connected with the inspection or
examination for at least 2 years after the
United States offshore facility ceases to be
certified; and
(B) shall permit access to those files at all
reasonable times to any officer, employee, or
member of the Coast Guard designated—
(i) as a marine inspector and serving in a
position as a marine inspector; or
(ii) in writing by the Secretary to have access to those files.
(4) For purposes of this subsection—
(A) the term ‘‘offshore facility’’ means any
installation, structure, or other device (including any vessel not documented under
chapter 121 of this title or the laws of another
country), fixed or floating, that dynamically
holds position or is temporarily or permanently attached to the seabed or subsoil under
the sea; and
(B) the term ‘‘United States offshore facility’’ means any offshore facility, fixed or
floating, that dynamically holds position or is
temporarily or permanently attached to the
seabed or subsoil under the territorial sea of
the United States or the outer Continental
Shelf (as that term is defined in section 2 of
the Outer Continental Shelf Lands Act (43
U.S.C. 1331)), including any vessel, rig, platform, or other vehicle or structure subject to
regulation under section 30 of the Outer Continental Shelf Lands Act (43 U.S.C. 1356).
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 516; Pub. L.
104–324, title VI, § 607(a), (b)(1), Oct. 19, 1996, 110
Stat. 3931, 3932; Pub. L. 108–293, title IV, § 413(a),
Aug. 9, 2004, 118 Stat. 1046; Pub. L. 111–281, title
VI, § 622, Oct. 15, 2010, 124 Stat. 2978.)
HISTORICAL AND REVISION NOTES
Revised section
3316 ..............................................

Source section (U.S. Code)
46:9 (less (c))
46:369
46:881

Section 3316 prescribes the relationship between certain classification societies and the Federal Government with respect to the promotion of maritime safety
and the security of life and property at sea. Briefly
stated, a classification society, like the American Bureau of Shipping (ABS), establishes and administers
standards for the design, construction, and periodic

Page 53

§ 3318

TITLE 46—SHIPPING

survey of commercial vessels, yachts, and other marine
structures. Classification certifies adherence to these
standards, thus representing that a vessel or structure
possesses the structural and mechanical fitness required for its intended service.
The section requires that a Federal department,
agency, or instrumentality recognize the American Bureau of Shipping as its agent for classing vessels owned
by the Federal Government and in any matters related
to classification. In effect, the ABS has a statutory monopoly on classing vessels of the United States Government. Additionally, the section contains the authority
to permit the Secretary to rely on reports, documents,
and certificates issued by a classification society that
is similar to the American Bureau of Shipping. However, a ‘‘similar classification society’’ continues to
mean one that is organized like the American Bureau
of Shipping with attendant governmental representation.
AMENDMENTS
2010—Subsec. (c). Pub. L. 111–281, § 622(b), added par.
(1) and struck out former par. (1) which read as follows:
‘‘A classification society (including an employee or
agent of that society) may not review, examine, survey,
or certify the construction, repair, or alteration of a
vessel in the United States unless—
‘‘(A) the society has applied for approval under this
subsection and the Secretary has reviewed and approved that society with respect to the conduct of
that society under paragraph (2); or
‘‘(B) the society is a full member of the International Association of Classification Societies.’’
Subsec. (d). Pub. L. 111–281, § 622(a), added subsec. (d).
2004—Subsec. (c). Pub. L. 108–293 added subsec. (c).
1996—Pub. L. 104–324, § 607(b)(1), substituted ‘‘Classification societies’’ for ‘‘United States classification societies’’ in section catchline.
Subsec. (a). Pub. L. 104–324, § 607(a)(3), which directed
the substitution of ‘‘American Bureau of Shipping’’ for
‘‘Bureau’’, was executed by making the substitution
the first place appearing, to reflect the probable intent
of Congress.
Pub. L. 104–324, § 607(a)(1), (2), redesignated subsec. (b)
as (a) and struck out former subsec. (a) which read as
follows: ‘‘In carrying out this part, the Secretary may
rely on reports, documents, and certificates issued by
the American Bureau of Shipping or a similar United
States classification society, or an agent of the Bureau
or society.’’
Subsec. (b). Pub. L. 104–324, § 607(a)(2), (4), redesignated subsec. (c) as (b), added pars. (1) and (2), redesignated former par. (2) as (3), and struck out former par.
(1) which read as follows: ‘‘To the maximum extent
practicable, the Secretary may delegate to the Bureau
or a similar United States classification society, or an
agent of the Bureau or society, the inspection or examination, in the United States or in a foreign country, of
a vessel documented or to be documented as a vessel of
the United States. The Bureau, society, or agent may
issue the certificate of inspection required by this part
and other certificates essential to documentation.’’
Former subsec. (b) redesignated (a).
Subsec. (c). Pub. L. 104–324, § 607(a)(2), redesignated
subsec. (c) as (b).
Subsec. (d). Pub. L. 104–324, § 607(a)(1), struck out subsec. (d) which read as follows: ‘‘The Secretary also may
make an agreement with or use the Bureau or a similar
United States classification society, or an agent of the
Bureau or society, for reviewing and approving plans
required for issuing a certificate of inspection.’’
EFFECTIVE DATE OF 2004 AMENDMENT
Pub. L. 108–293, title IV, § 413(b), Aug. 9, 2004, 118 Stat.
1046, provided that: ‘‘Section 3316(c)(1) of title 46,
United States Code, shall apply with respect to operation as a classification society on or after January 1,
2005.’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities

and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 3317. Fees
(a) The Secretary may prescribe by regulation
fees for inspecting or examining a small passenger vessel or a sailing school vessel.
(b) When an inspection or examination under
this part of a documented vessel or a foreign
vessel is conducted at a foreign port or place at
the request of the owner or managing operator
of the vessel, the owner or operator shall reimburse the Secretary for the travel and subsistence expenses incurred by the personnel assigned to perform the inspection or examination. Amounts received as reimbursement for
these expenses shall be credited to the appropriation for operating expenses of the Coast
Guard.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 517; Pub. L.
102–587, title V, § 5211, Nov. 4, 1992, 106 Stat. 5076.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3317 ..............................................

46:390a(b)
46:382b–1

Section 3317 provides the regulatory authority for
prescribing fees for the inspection of small passenger
vessels and sailing school vessels. Although section 2110
generally prohibits fees of this nature, this provision is
consistent with the exception that permits specific
statutory authorization for fee collection. Subsection
(b) requires the reimbursement of expenses for the conduct of an inspection or examination at a foreign port
or place when done there for the convenience of the
owner or operator of the vessel.
AMENDMENTS
1992—Subsec. (b). Pub. L. 102–587 substituted ‘‘under
this part of a documented vessel or a foreign vessel’’ for
‘‘under this chapter of a documented vessel’’.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 3318. Penalties
(a) Except as otherwise provided in this part,
the owner, charterer, managing operator, agent,
master, or individual in charge of a vessel operated in violation of this part or a regulation prescribed under this part, and a person violating a
regulation that applies to a small passenger vessel, freight vessel of less than 100 gross tons as
measured under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary under
section 14104 of this title, or sailing school vessel, are liable to the United States Government
for a civil penalty of not more than $5,000. The
vessel also is liable in rem for the penalty.

§ 3318

TITLE 46—SHIPPING

(b)(1) A person that knowingly manufactures,
sells, offers for sale, or possesses with intent to
sell, any equipment subject to this part, and the
equipment is so defective as to be insufficient to
accomplish the purpose for which it is intended,
commits a class D felony.
(2) A person commits a class D felony if the
person—
(A) alters or services lifesaving, fire safety,
or any other equipment subject to this part for
compensation; and
(B) by that alteration or servicing, intentionally renders that equipment unsafe and
unfit for the purpose for which it is intended.
(c) A person that employs a means or device
whereby a boiler may be subjected to a pressure
greater than allowed by the terms of the vessel’s
certificate of inspection commits a class D felony.
(d) A person that deranges or hinders the operation of any machinery or device employed on a
vessel to denote the state of steam or water in
any boiler or to give warning of approaching
danger, or permits the water level of any boiler
when in operation of a vessel to fall below its
prescribed low-water line, commits a class D felony.
(e) A person that alters, defaces, obliterates,
removes, or destroys any plans or specifications
required by and approved under a regulation
prescribed under section 3306 of this title, with
intent to deceive or impede any official of the
United States in carrying out that official’s duties, commits a class A misdemeanor.
(f) A person commits a class D felony if the
person—
(1) forges or counterfeits with intent to
make it appear genuine any mark or stamp
prescribed for material to be tested and approved under section 3306 of this title or a regulation prescribed under section 3306;
(2) knowingly uses, affixes, or causes to be
used or affixed, any such forged or counterfeited mark or stamp to or on material of any
description;
(3) with fraudulent intent, possesses any
such mark, stamp, or other device knowing it
to be forged or counterfeited; or
(4) with fraudulent intent, marks or causes
to be marked with the trademark or name of
another, material required to be tested and approved under section 3306 of this title or a regulation prescribed under section 3306.
(g) A person is liable to the Government for a
civil penalty of not more than $5,000, if the person—
(1) interferes with the inspection of a nautical school vessel;
(2) violates a regulation prescribed for a nautical school vessel;
(3) is an owner of a nautical school vessel operated in violation of this part; or
(4) is an officer or member of the board of directors of a school, organization, association,
partnership, or corporation owning a nautical
school vessel operated in violation of a regulation prescribed for a nautical school vessel.
(h) An owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
that fails to give the notice required by section

Page 54

3304(b) of this title is liable to the Government
for a civil penalty of not more than $1,000. The
vessel also is liable in rem for the penalty.
(i) A person violating section 3309(c) of this
title is liable to the Government for a civil penalty of not more than $1,000.
(j)(1) An owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
required to be inspected under this chapter operating the vessel without the certificate of inspection is liable to the Government for a civil
penalty of not more than $10,000 for each day
during which the violation occurs, except when
the violation involves operation of a vessel of
less than 1,600 gross tons as measured under section 14502 of this title, or an alternate tonnage
measured under section 14302 of this title as prescribed by the Secretary under section 14104 of
this title, the penalty is not more than $2,000 for
each day during which the violation occurs. The
vessel also is liable in rem for the penalty.
(2) A person is not liable for a penalty under
this subsection if—
(A) the owner, charterer, managing operator,
agent, master, or individual in charge of the
vessel has notified the Secretary under section
3309(c) of this title;
(B) the owner, charterer, managing operator,
agent, master, or individual in charge of the
vessel has complied with all other directions
and requirements for obtaining an inspection
under this part; and
(C) the Secretary believes that unforeseen
circumstances exist so that it is not feasible
to conduct a scheduled inspection before the
expiration of the certificate of inspection.
(k) The owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
failing to comply with a direction issued by the
Secretary under section 3311(b) of this title is
liable to the Government for a civil penalty of
not more than $10,000 for each day during which
the violation occurs. The vessel also is liable in
rem for the penalty.
(l) A person committing an act described by
subsections (b)–(f) of this section is liable to the
Government for a civil penalty of not more than
$5,000. If the violation involves the operation of
a vessel, the vessel also is liable in rem for the
penalty.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 517; Pub. L.
98–498, title II, § 211(c), Oct. 19, 1984, 98 Stat. 2304;
Pub. L. 99–307, § 1(6), May 19, 1986, 100 Stat. 445;
Pub. L. 101–380, title IV, § 4302(b), Aug. 18, 1990,
104 Stat. 538; Pub. L. 104–324, title III, § 310, title
VII, § 713, Oct. 19, 1996, 110 Stat. 3919, 3936; Pub.
L. 109–304, § 15(13), Oct. 6, 2006, 120 Stat. 1703.)
HISTORICAL AND REVISION NOTES
Revised section
3318 ..............................................

Source section (U.S. Code)
46:369(e)
46:390d
46:398
46:403
46:407
46:408
46:410
46:413
46:436
46:481(d)
46:1295f(d)(2), (3)

Section 3318 provides for a number of specific civil
and criminal penalties.

Page 55
AMENDMENTS

2006—Subsec. (f). Pub. L. 109–304 struck out period
after ‘‘felony’’.
1996—Subsec. (a). Pub. L. 104–324, § 713(1), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘100 gross tons’’.
Subsec. (b)(1). Pub. L. 104–324, § 310, designated existing provisions as par. (1) and added par. (2).
Subsec. (j)(1). Pub. L. 104–324, § 713(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘1,600 gross tons’’.
1990—Subsec. (b). Pub. L. 101–380, § 4302(b)(1), substituted ‘‘commits a class D felony’’ for ‘‘shall be fined
not more than $10,000, imprisoned for not more than 5
years, or both’’.
Subsec. (c). Pub. L. 101–380, § 4302(b)(2), substituted
‘‘commits a class D felony’’ for ‘‘shall be fined not more
than $5,000, imprisoned for not more than 5 years, or
both’’.
Subsec. (d). Pub. L. 101–380, § 4302(b)(3), substituted
‘‘commits a class D felony’’ for ‘‘shall be fined not more
than $5,000, imprisoned for not more than 5 years, or
both’’.
Subsec. (e). Pub. L. 101–380, § 4302(b)(4), substituted
‘‘commits a class A misdemeanor’’ for ‘‘shall be fined
not more than $10,000, imprisoned for not more than 2
years, or both’’.
Subsec. (f). Pub. L. 101–380, § 4302(b)(5), substituted
‘‘commits a class D felony.’’ for ‘‘shall be fined not less
than $1,000 but not more than $10,000, and imprisoned
for not less than 2 years but not more than 5 years,’’.
1986—Subsec. (f). Pub. L. 99–307 in provision preceding
par. (1) substituted ‘‘than’’ for ‘‘then’’ in two places.
1984—Subsec. (a). Pub. L. 98–498, § 211(c)(1), substituted ‘‘Except as otherwise provided in this part,
the’’ for ‘‘The’’ and ‘‘not more than $5,000’’ for ‘‘$1,000,
except that when the violation involves operation of a
barge, the penalty is $500’’.
Subsec. (c). Pub. L. 98–498, § 211(c)(2), substituted
‘‘$5,000’’ for ‘‘$2,000’’.
Subsec. (d). Pub. L. 98–498, § 211(c)(3), substituted
‘‘$5,000’’ for ‘‘$2,000’’.
Subsec. (e). Pub. L. 98–498, § 211(c)(4), substituted
‘‘$10,000’’ for ‘‘$2,000’’.
Subsec. (f). Pub. L. 98–498, § 211(c)(5), substituted
‘‘$10,000’’ for ‘‘$5,000’’.
Subsec. (g). Pub. L. 98–498, § 211(c)(6), substituted ‘‘is
liable to the Government for a civil penalty of not
more than $5,000’’ for ‘‘shall be fined not more than
$10,000, imprisoned for not more than one year, or
both’’.
Subsec. (h). Pub. L. 98–498, § 211(c)(7), substituted
‘‘Government for a civil penalty of not more than
$1,000.’’ for ‘‘United States Government for a civil penalty of not more than $500.’’
Subsecs. (i) to (l). Pub. L. 98–498, § 211(c)(8), added subsecs. (i) to (l).
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

CHAPTER 35—CARRIAGE OF PASSENGERS
Sec.

3501.
3502.
3503.
3504.
3505.
3506.
3507.

1 So

§ 3502

TITLE 46—SHIPPING

Number of passengers.
List or count of passengers.
Fire-retardant materials.
Notification to passengers.
Prevention of departure.
Copies of laws.
Passenger vessel security and safety requirements 1
in original. Probably should be followed by a period.

Sec.

3508.

Crime scene preservation training for passenger vessel crewmembers 1
HISTORICAL AND REVISION NOTES

Chapter 35 consolidates the laws that have specific
application to the carriage of passengers. They provide
special provisions for listing and counting the number
of passengers on board a vessel, for notifying the general public of the safety standards that are applicable,
and for related control measures.
AMENDMENTS
2010—Pub. L. 111–207, § 3(b), July 27, 2010, 124 Stat.
2251, added items 3507 and 3508.

§ 3501. Number of passengers
(a) Each certificate of inspection issued to a
vessel carrying passengers (except a ferry) shall
include a statement on the number of passengers that the vessel is permitted to carry.
(b) The owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
is liable to a person suing them for carrying
more passengers than the number of passengers
permitted by the certificate of inspection in an
amount equal to—
(1) passage money; and
(2) $100 for each passenger in excess of the
number of passengers permitted.
(c) An owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
that knowingly carries more passengers than
the number of passengers permitted by the certificate of inspection also shall be fined not
more than $100, imprisoned for not more than 30
days, or both.
(d) The vessel also is liable in rem for a penalty under this section.
(e) An offshore supply vessel may not carry
passengers except in an emergency.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 519; Pub. L.
99–36, § 1(a)(2), May 15, 1985, 99 Stat. 67.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3501 ..............................................

46:404–1
46:451
46:452
46:462

Section 3501 requires that a vessel carrying passengers, including a passenger vessel as well as a small
passenger vessel (except a ferry), shall have on the certificate of inspection a statement as to the number of
passengers the vessel is permitted to carry. It also provides penalties for carrying passengers in excess of the
number permitted.
AMENDMENTS
1985—Subsec. (a). Pub. L. 99–36, § 1(a)(2)(A), struck out
the comma after ‘‘(except a ferry)’’.
Subsec. (c). Pub. L. 99–36, § 1(a)(2)(B), substituted
‘‘carries more passengers than the number of passengers permitted by the certificate of inspection’’ for
‘‘violates subsection (b) of this section’’.
EFFECTIVE DATE
Chapter effective Apr. 15, 1984, see section 2(g)(1) of
Pub. L. 98–89, set out as a note under section 3101 of
this title.

§ 3502. List or count of passengers
(a) The owner, charterer, managing operator,
master, or individual in charge of the following

§ 3503

TITLE 46—SHIPPING

categories of vessels carrying passengers shall
keep a correct list of passengers received and delivered from day to day:
(1) vessels arriving from foreign ports (except at United States Great Lakes ports from
Canadian Great Lakes ports).
(2) seagoing vessels in the coastwise trade.
(3) passenger vessels making voyages of
more than 300 miles on the Great Lakes except
from a Canadian to a United States port.
(b) The master of a vessel carrying passengers
(except a vessel listed in subsection (a) of this
section) shall keep a correct count of all passengers received and delivered.
(c) Lists and counts required under this section shall be open to the inspection of designated officials of the Coast Guard and the Customs Service at all times. The total number of
passengers shall be provided to the Coast Guard
when requested.
(d) This section applies to a foreign vessel arriving at a United States port.
(e) The owner, charterer, managing operator,
master, or individual in charge of a passenger
vessel failing to make a list or count of passengers as required by this section is liable to
the United States Government for a civil penalty of $100. The vessel also is liable in rem for
the penalty.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 519.)
HISTORICAL AND REVISION NOTES
Revised section
3502 ..............................................

Source section (U.S. Code)
46:460
46:460a
46:461
46:462

Section 3502 is related to section 3501 and requires the
listing or counting of passengers on certain vessels.
This requirement applies to large as well as small passenger vessels when operating on the types of voyages
enumerated. This section also applies to a foreign vessel arriving at a port or place in the United States.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the
Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.

§ 3503. Fire-retardant materials
(a) A passenger vessel of the United States
having berth or stateroom accommodations for
at least 50 passengers shall be granted a certificate of inspection only if the vessel is constructed of fire-retardant materials. Before November 1, 2008, this section does not apply to

Page 56

any vessel in operation before January 1, 1968,
and operating only within the Boundary Line.
(b)(1) When a vessel is exempted from the fireretardant standards of this section—
(A) the owner or managing operator of the
vessel shall notify prospective passengers that
the vessel does not comply with applicable fire
safety standards due primarily to the wooden
construction of passenger berthing areas;
(B) the owner or managing operator of the
vessel may not disclaim liability to a passenger for death, injury, or any other loss
caused by fire due to the negligence of the
owner or managing operator;
(C) the penalties provided in section 3504(c)
of this title apply to a violation of this subsection; and
(D) the owner or managing operator of the
vessel shall notify the Coast Guard of structural alterations to the vessel, and with regard
to those alterations comply with any noncombustible material requirements that the
Coast Guard prescribes for nonpublic spaces.
Coast Guard requirements shall be consistent
with preservation of the historic integrity of
the vessel in areas carrying or accessible to
passengers or generally visible to the public.
(2) The Secretary shall prescribe regulations
under this subsection on the manner in which
prospective passengers are to be notified.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 519; Pub. L.
99–307, § 1(7)(A), May 19, 1986, 100 Stat. 445; Pub.
L. 102–241, § 20, Dec. 19, 1991, 105 Stat. 2216; Pub.
L. 104–324, title XI, § 1133, Oct. 19, 1996, 110 Stat.
3985.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3503 ..............................................

46:369(b)

Section 3503 requires the use of fire retardant materials on a vessel having berthing facilities for at least
50 passengers. This requirement in the case of vessels
engaged in foreign trade is consistent with our international treaty obligations, which impose extensive
and additional fire safety standards. A waiver that
grandfathers existing inland river passenger vessels is
also included.
AMENDMENTS
1996—Subsec. (a). Pub. L. 104–324 substituted ‘‘Before
November 1, 2008, this section does not apply to any
vessel in operation before January 1, 1968, and operating only within the Boundary Line.’’ for ‘‘Before November 1, 1998, this section does not apply to a vessel
in operation before January 1, 1968, and operating only
on the inland rivers.’’
1991—Subsec. (a). Pub. L. 102–241, § 20(1), substituted
‘‘1998’’ for ‘‘1993’’.
Subsec. (b)(1)(D). Pub. L. 102–241, § 20(2), added subpar.
(D).
1986—Pub. L. 99–307 designated existing provision as
subsec. (a), substituted ‘‘November 1, 1993’’ for ‘‘November 1, 1988’’ and inserted ‘‘in operation before January
1, 1968, and’’ after ‘‘to a vessel’’, and added subsec. (b).
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu-

Page 57

§ 3507

TITLE 46—SHIPPING

rity, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
NOTIFICATION TO PROSPECTIVE PASSENGERS OF
NONCOMPLIANCE WITH FIRE-RETARDANT STANDARDS
Pub. L. 99–307, § 1(7)(B), May 19, 1986, 100 Stat. 445, provided that: ‘‘Until the regulations required by subclause (A) of this clause [see subsec. (b)(2) of this section] become effective, the owner or managing operator
shall notify prospective passengers in all promotional
literature and on each ticket that the vessel does not
comply with those standards due primarily to the
wooden construction of passenger berthing areas.’’

§ 3504. Notification to passengers
(a) A person selling passage on a foreign or domestic passenger vessel having berth or stateroom accommodations for at least 50 passengers
and embarking passengers at United States
ports for a coastwise or an international voyage
shall notify each prospective passenger of the
safety standards applicable to the vessel in a
manner prescribed by regulation.
(b) All promotional literature or advertising
through any medium of communication in the
United States offering passage or soliciting passengers for ocean voyages anywhere in the world
shall include information similar to the information described in subsection (a) of this section, and shall specify the registry of each vessel
named, as a part of the advertisement or description of the voyage. Except for the inclusion
of the country of registry of the vessel, this subsection does not apply to voyages by vessels
meeting the safety standards described in section 3505 of this title.
(c) A person violating this section or a regulation prescribed under this section is liable to the
United States Government for a civil penalty of
not more than $10,000. If the violation involves
the sale of tickets for passage, the owner, charterer, managing operator, agent, master, individual in charge, or any other person involved in
each violation also is liable to the Government
for a civil penalty of $500 for each ticket sold.
The vessel on which passage is sold also is liable
in rem for a violation of this section or a regulation prescribed under this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 519.)
HISTORICAL AND REVISION NOTES
Revised section
3504 ..............................................

Source section (U.S. Code)
46:362(b)

Section 3504 requires notification to the public of the
safety standards that are applicable to certain foreign
flag or United States passenger vessels. In addition, all
promotional literature or advertising that offers passage or solicits passengers for ocean voyages anywhere
in the world shall include a safety standard statement
and shall specify the registry of the vessel. If the vessel
meets the international standards to which the United
States adheres, then the safety standard statement
need not be included. In all other cases the type of safety standard statement that must be included is as prescribed by regulation. This section is intended to place
the United States public on notice as to the degree of
fire safety compliance of a foreign-flag passenger vessel
that does not operate or depart from a port or place in
the United States but does embark passengers from the
United States at nearby foreign ports. Departures from
foreign ports are undertaken because the foreign-flag

passenger vessel cannot comply with the safety standards applicable to a United States flag passenger vessel.

§ 3505. Prevention of departure
Notwithstanding section 3303 of this title, a
foreign vessel carrying a citizen of the United
States as a passenger or embarking passengers
from a United States port may not depart from
a United States port if the Secretary finds that
the vessel does not comply with the standards
stated in the International Convention for the
Safety of Life at Sea to which the United States
Government is currently a party.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 520; Pub. L.
102–587, title V, § 5210(b), Nov. 4, 1992, 106 Stat.
5076; Pub. L. 108–293, title IV, § 411(a), Aug. 9,
2004, 118 Stat. 1045.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3505 ..............................................

46:362(c)

Section 3505 prohibits the departure
States port or place of any passenger
than 100 gross tons having berthing for
sengers, if the vessel does not comply
national maritime safety standards
United States vessels.

from a United
vessel of more
at least 50 paswith the interapplicable to

AMENDMENTS
2004—Pub. L. 108–293 reenacted section catchline
without change and amended text generally. Prior to
amendment, text read as follows: ‘‘Notwithstanding
section 3303(a) of this title, a foreign vessel may not depart from a United States port with passengers who are
embarked at that port, if the Secretary finds that the
vessel does not comply with the standards stated in the
International Convention for the Safety of Life at Sea
to which the United States Government is currently a
party.’’
1992—Pub. L. 102–587 substituted ‘‘foreign vessel may
not depart’’ for ‘‘foreign or domestic vessel of more
than 100 gross tons having berth or stateroom accommodations for at least 50 passengers may not depart’’.
INTERNATIONAL CONVENTION FOR SAFETY OF LIFE AT
SEA
For International Conventions for the Safety of Life
at Sea to which the United States has been a party, see
section 1602 of Title 33, Navigation and Navigable Waters, and notes thereunder.

§ 3506. Copies of laws
A master of a passenger vessel shall keep on
board a copy of this subtitle, to be provided by
the Secretary at reasonable cost. If the master
fails to do so, the master is liable to the United
States Government for a civil penalty of $200.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 520.)
HISTORICAL AND REVISION NOTES
Revised section
3506 ..............................................

Source section (U.S. Code)
46:492

Section 3506 requires the master of a passenger vessel
to keep on board a copy of subtitle II of title 46, U.S.C.
Copies of the subtitle shall be provided by the Secretary at reasonable cost.

§ 3507. Passenger vessel security and safety requirements
(a) VESSEL DESIGN, EQUIPMENT, CONSTRUCTION,
RETROFITTING REQUIREMENTS.—

AND

§ 3507

TITLE 46—SHIPPING

(1) IN GENERAL.—Each vessel to which this
subsection applies shall comply with the following design and construction standards:
(A) The vessel shall be equipped with ship
rails that are located not less than 42 inches
above the cabin deck.
(B) Each passenger stateroom and crew
cabin shall be equipped with entry doors
that include peep holes or other means of
visual identification.
(C) For any vessel the keel of which is laid
after the date of enactment of the Cruise
Vessel Security and Safety Act of 2010, each
passenger stateroom and crew cabin shall be
equipped with—
(i) security latches; and
(ii) time-sensitive key technology.
(D) The vessel shall integrate technology
that can be used for capturing images of passengers or detecting passengers who have
fallen overboard, to the extent that such
technology is available.
(E) The vessel shall be equipped with a sufficient number of operable acoustic hailing
or other such warning devices to provide
communication capability around the entire
vessel when operating in high risk areas (as
defined by the United States Coast Guard).
(2) FIRE SAFETY CODES.—In administering the
requirements of paragraph (1)(C), the Secretary shall take into consideration fire safety
and other applicable emergency requirements
established by the U.S. Coast Guard and under
international law, as appropriate.
(3) EFFECTIVE DATE.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), the requirements of paragraph (1) shall take effect 18 months after
the date of enactment of the Cruise Vessel
Security and Safety Act of 2010.
(B) LATCH AND KEY REQUIREMENTS.—The requirements of paragraph (1)(C) take effect on
the date of enactment of the Cruise Vessel
Security and Safety Act of 2010.
(b) VIDEO RECORDING.—
(1) REQUIREMENT TO MAINTAIN SURVEILLANCE.—The owner of a vessel to which this
section applies shall maintain a video surveillance system to assist in documenting crimes
on the vessel and in providing evidence for the
prosecution of such crimes, as determined by
the Secretary.
(2) ACCESS TO VIDEO RECORDS.—The owner of
a vessel to which this section applies shall
provide to any law enforcement official performing official duties in the course and scope
of an investigation, upon request, a copy of all
records of video surveillance that the official
believes may provide evidence of a crime reported to law enforcement officials.
(c) SAFETY INFORMATION.—
(1) CRIMINAL ACTIVITY PREVENTION AND RESPONSE GUIDE.—The owner of a vessel to which
this section applies (or the owner’s designee)
shall—
(A) have available for each passenger a
guide (referred to in this subsection as the
‘‘security guide’’), written in commonly understood English, which—

Page 58

(i) provides a description of medical and
security personnel designated on board to
prevent and respond to criminal and medical situations with 24 hour contact instructions;
(ii) describes the jurisdictional authority
applicable, and the law enforcement processes available, with respect to the reporting of homicide, suspicious death, a missing United States national, kidnapping,
assault with serious bodily injury, any offense to which section 2241, 2242, 2243, or
2244(a) or (c) of title 18 applies, firing or
tampering with the vessel, or theft of
money or property in excess of $10,000, together with contact information for the
appropriate law enforcement authorities
for missing persons or reportable crimes
which arise—
(I) in the territorial waters of the
United States;
(II) on the high seas; or
(III) in any country to be visited on the
voyage;
(B) provide a copy of the security guide to
the Federal Bureau of Investigation for comment; and
(C) publicize the security guide on the
website of the vessel owner.
(2) EMBASSY AND CONSULATE LOCATIONS.—The
owner of a vessel to which this section applies
shall provide in each passenger stateroom, and
post in a location readily accessible to all
crew and in other places specified by the Secretary, information regarding the locations of
the United States embassy and each consulate
of the United States for each country the vessel will visit during the course of the voyage.
(d) SEXUAL ASSAULT.—The owner of a vessel to
which this section applies shall—
(1) maintain on the vessel adequate, in-date
supplies of anti-retroviral medications and
other medications designed to prevent sexually transmitted diseases after a sexual assault;
(2) maintain on the vessel equipment and
materials for performing a medical examination in sexual assault cases to evaluate the patient for trauma, provide medical care, and
preserve relevant medical evidence;
(3) make available on the vessel at all times
medical staff who have undergone a credentialing process to verify that he or she—
(A) possesses a current physician’s or registered nurse’s license and—
(i) has at least 3 years of post-graduate
or post-registration clinical practice in
general and emergency medicine; or
(ii) holds board certification in emergency medicine, family practice medicine,
or internal medicine;
(B) is able to provide assistance in the
event of an alleged sexual assault, has received training in conducting forensic sexual
assault examination, and is able to promptly
perform such an examination upon request
and provide proper medical treatment of a
victim, including administration of antiretroviral medications and other medica-

Page 59

TITLE 46—SHIPPING

tions that may prevent the transmission of
human immunodeficiency virus and other
sexually transmitted diseases; and
(C) meets guidelines established by the
American College of Emergency Physicians
relating to the treatment and care of victims of sexual assault;
(4) prepare, provide to the patient, and maintain written documentation of the findings of
such examination that is signed by the patient; and
(5) provide the patient free and immediate
access to—
(A) contact information for local law enforcement, the Federal Bureau of Investigation, the United States Coast Guard, the
nearest United States consulate or embassy,
and the National Sexual Assault Hotline
program or other third party victim advocacy hotline service; and
(B) a private telephone line and Internetaccessible computer terminal by which the
individual may confidentially access law enforcement officials, an attorney, and the information and support services available
through the National Sexual Assault Hotline
program or other third party victim advocacy hotline service.
(e) CONFIDENTIALITY OF SEXUAL ASSAULT EXAMINATION
AND
SUPPORT INFORMATION.—The
master or other individual in charge of a vessel
to which this section applies shall—
(1) treat all information concerning an examination under subsection (d) confidential,
so that no medical information may be released to the cruise line or other owner of the
vessel or any legal representative thereof
without the prior knowledge and approval in
writing of the patient, or, if the patient is unable to provide written authorization, the patient’s next-of-kin, except that nothing in this
paragraph prohibits the release of—
(A) information, other than medical findings, necessary for the owner or master of
the vessel to comply with the provisions of
subsection (g) or other applicable incident
reporting laws;
(B) information to secure the safety of passengers or crew on board the vessel; or
(C) any information to law enforcement officials performing official duties in the
course and scope of an investigation; and
(2) treat any information derived from, or
obtained in connection with, post-assault
counseling or other supportive services confidential, so no such information may be released to the cruise line or any legal representative thereof without the prior knowledge and approval in writing of the patient, or,
if the patient is unable to provide written authorization, the patient’s next-of-kin.
(f) CREW ACCESS TO PASSENGER STATEROOMS.—
The owner of a vessel to which this section applies shall—
(1) establish and implement procedures and
restrictions concerning—
(A) which crewmembers have access to
passenger staterooms; and
(B) the periods during which they have
that access; and

§ 3507

(2) ensure that the procedures and restrictions are fully and properly implemented and
periodically reviewed.
(g) LOG BOOK AND REPORTING REQUIREMENTS.—
(1) IN GENERAL.—The owner of a vessel to
which this section applies shall—
(A) record in a log book, either electronically or otherwise, in a centralized location
readily accessible to law enforcement personnel, a report on—
(i) all complaints of crimes described in
paragraph (3)(A)(i),
(ii) all complaints of theft of property
valued in excess of $1,000, and
(iii) all complaints of other crimes,
committed on any voyage that embarks or
disembarks passengers in the United States;
and
(B) make such log book available upon request to any agent of the Federal Bureau of
Investigation, any member of the United
States Coast Guard, and any law enforcement officer performing official duties in the
course and scope of an investigation.
(2) DETAILS REQUIRED.—The information recorded under paragraph (1) shall include, at a
minimum—
(A) the vessel operator;
(B) the name of the cruise line;
(C) the flag under which the vessel was operating at the time the reported incident occurred;
(D) the age and gender of the victim and
the accused assailant;
(E) the nature of the alleged crime or complaint, as applicable, including whether the
alleged perpetrator was a passenger or a
crewmember;
(F) the vessel’s position at the time of the
incident, if known, or the position of the
vessel at the time of the initial report;
(G) the time, date, and method of the initial report and the law enforcement authority to which the initial report was made;
(H) the time and date the incident occurred, if known;
(I) the total number of passengers and the
total number of crew members on the voyage; and
(J) the case number or other identifier provided by the law enforcement authority to
which the initial report was made.
(3) REQUIREMENT TO REPORT
OTHER INFORMATION.—
(A) IN GENERAL.—The owner

CRIMES

AND

of a vessel to
which this section applies (or the owner’s
designee)—
(i) shall contact the nearest Federal Bureau of Investigation Field Office or Legal
Attache by telephone as soon as possible
after the occurrence on board the vessel of
an incident involving homicide, suspicious
death, a missing United States national,
kidnapping, assault with serious bodily injury, any offense to which section 2241,
2242, 2243, or 2244(a) or (c) of title 18 applies, firing or tampering with the vessel,
or theft of money or property in excess of
$10,000 to report the incident;

§ 3507

TITLE 46—SHIPPING
(ii) shall furnish a written report of the
incident to an Internet based portal maintained by the Secretary;
(iii) may report any serious incident that
does not meet the reporting requirements
of clause (i) and that does not require immediate attention by the Federal Bureau
of Investigation via the Internet based
portal maintained by the Secretary; and
(iv) may report any other criminal incident involving passengers or crewmembers, or both, to the proper State or
local government law enforcement authority.

(B) INCIDENTS TO WHICH SUBPARAGRAPH (A)
APPLIES.—Subparagraph (A) applies to an incident involving criminal activity if—
(i) the vessel, regardless of registry, is
owned, in whole or in part, by a United
States person, regardless of the nationality of the victim or perpetrator, and the
incident occurs when the vessel is within
the admiralty and maritime jurisdiction of
the United States and outside the jurisdiction of any State;
(ii) the incident concerns an offense by
or against a United States national committed outside the jurisdiction of any nation;
(iii) the incident occurs in the Territorial Sea of the United States, regardless
of the nationality of the vessel, the victim,
or the perpetrator; or
(iv) the incident concerns a victim or
perpetrator who is a United States national on a vessel during a voyage that departed from or will arrive at a United
States port.
(4) AVAILABILITY OF INCIDENT DATA VIA INTERNET.—

(A) WEBSITE.—The Secretary shall maintain a statistical compilation of all incidents described in paragraph (3)(A)(i) on an
Internet site that provides a numerical accounting of the missing persons and alleged
crimes recorded in each report filed under
paragraph (3)(A)(i) that are no longer under
investigation by the Federal Bureau of Investigation. The data shall be updated no
less frequently than quarterly, aggregated
by cruise line, each cruise line shall be identified by name, and each crime shall be identified as to whether it was committed by a
passenger or a crew member.
(B) ACCESS TO WEBSITE.—Each cruise line
taking on or discharging passengers in the
United States shall include a link on its
Internet website to the website maintained
by the Secretary under subparagraph (A).
(h) ENFORCEMENT.—
(1) PENALTIES.—
(A) CIVIL PENALTY.—Any person that violates this section or a regulation under this
section shall be liable for a civil penalty of
not more than $25,000 for each day during
which the violation continues, except that
the maximum penalty for a continuing violation is $50,000.
(B) CRIMINAL PENALTY.—Any person that
willfully violates this section or a regulation

Page 60

under this section shall be fined not more
than $250,000 or imprisoned not more than 1
year, or both.
(2) DENIAL OF ENTRY.—The Secretary may
deny entry into the United States to a vessel
to which this section applies if the owner of
the vessel—
(A) commits an act or omission for which
a penalty may be imposed under this subsection; or
(B) fails to pay a penalty imposed on the
owner under this subsection.
(i) PROCEDURES.—Within 6 months after the
date of enactment of the Cruise Vessel Security
and Safety Act of 2010, the Secretary shall issue
guidelines, training curricula, and inspection
and certification procedures necessary to carry
out the requirements of this section.
(j) REGULATIONS.—The Secretary and the Commandant shall each issue such regulations as are
necessary to implement this section.
(k) APPLICATION.—
(1) IN GENERAL.—This section and section
3508 apply to a passenger vessel (as defined in
section 2101(22)) that—
(A) is authorized to carry at least 250 passengers;
(B) has onboard sleeping facilities for each
passenger;
(C) is on a voyage that embarks or disembarks passengers in the United States;
and
(D) is not engaged on a coastwise voyage.
(2) FEDERAL AND STATE VESSELS.—This section and section 3508 do not apply to a vessel
of the United States operated by the Federal
Government or a vessel owned and operated by
a State.
(l) DEFINITIONS.—In this section and section
3508:
(1) COMMANDANT.—The term ‘‘Commandant’’
means the Commandant of the Coast Guard.
(2) OWNER.—The term ‘‘owner’’ means the
owner, charterer, managing operator, master,
or other individual in charge of a vessel.
(Added Pub. L. 111–207, § 3(a), July 27, 2010, 124
Stat. 2244.)
REFERENCES IN TEXT
The date of enactment of the Cruise Vessel Security
and Safety Act of 2010, referred to in subsecs. (a)(1)(C),
(3) and (i), is the date of enactment of Pub. L. 111–207,
which was approved July 27, 2010.
FINDINGS
Pub. L. 111–207, § 2, July 27, 2010, 124 Stat. 2243, provided that: ‘‘The Congress makes the following findings:
‘‘(1) There are approximately 200 overnight oceangoing cruise vessels worldwide. The average oceangoing cruise vessel carries 2,000 passengers with a
crew of 950 people.
‘‘(2) In 2007 alone, approximately 12,000,000 passengers were projected to take a cruise worldwide.
‘‘(3) Passengers on cruise vessels have an inadequate appreciation of their potential vulnerability
to crime while on ocean voyages, and those who may
be victimized lack the information they need to understand their legal rights or to know whom to contact for help in the immediate aftermath of the
crime.

Page 61

§ 3508

TITLE 46—SHIPPING

‘‘(4) Sexual violence, the disappearance of passengers from vessels on the high seas, and other serious crimes have occurred during luxury cruises.
‘‘(5) Over the last 5 years, sexual assault and physical assaults on cruise vessels were the leading
crimes investigated by the Federal Bureau of Investigation with regard to cruise vessel incidents.
‘‘(6) These crimes at sea can involve attacks both
by passengers and crewmembers on other passengers
and crewmembers.
‘‘(7) Except for United States flagged vessels, or foreign flagged vessels operating in an area subject to
the direct jurisdiction of the United States, there are
no Federal statutes or regulations that explicitly require cruise lines to report alleged crimes to United
States Government officials.
‘‘(8) It is not known precisely how often crimes
occur on cruise vessels or exactly how many people
have disappeared during ocean voyages because
cruise line companies do not make comprehensive,
crime-related data readily available to the public.
‘‘(9) Obtaining reliable crime-related cruise data
from governmental sources can be difficult, because
multiple countries may be involved when a crime occurs on the high seas, including the flag country for
the vessel, the country of citizenship of particular
passengers, and any countries having special or maritime jurisdiction.
‘‘(10) It can be difficult for professional crime investigators to immediately secure an alleged crime
scene on a cruise vessel, recover evidence of an onboard offense, and identify or interview potential witnesses to the alleged crime.
‘‘(11) Most cruise vessels that operate into and out
of United States ports are registered under the laws
of another country, and investigations and prosecutions of crimes against passengers and crewmembers
may involve the laws and authorities of multiple nations.
‘‘(12) The Department of Homeland Security has
found it necessary to establish 500-yard security
zones around cruise vessels to limit the risk of terrorist attack. Recently piracy has dramatically increased throughout the world.
‘‘(13) To enhance the safety of cruise passengers,
the owners of cruise vessels could upgrade, modernize, and retrofit the safety and security infrastructure on such vessels by installing peep holes in passenger room doors, installing security video cameras
in targeted areas, limiting access to passenger rooms
to select staff during specific times, and installing
acoustic hailing and warning devices capable of communicating over distances.’’

§ 3508. Crime scene preservation training for
passenger vessel crewmembers
(a) IN GENERAL.—Within 1 year after the date
of enactment of the Cruise Vessel Security and
Safety Act of 2010, the Secretary, in consultation with the Director of the Federal Bureau of
Investigation and the Maritime Administration,
shall develop training standards and curricula
to allow for the certification of passenger vessel
security personnel, crewmembers, and law enforcement officials on the appropriate methods
for prevention, detection, evidence preservation,
and reporting of criminal activities in the international maritime environment. The Administrator of the Maritime Administration may certify organizations in the United States and
abroad that offer the curriculum for training
and certification under subsection (c).
(b) MINIMUM STANDARDS.—The standards established by the Secretary under subsection (a)
shall include—
(1) the training and certification of vessel security personnel, crewmembers, and law en-

forcement officials in accordance with accepted law enforcement and security guidelines,
policies, and procedures, including recommendations for incorporating a background
check process for personnel trained and certified in foreign ports;
(2) the training of students and instructors
in all aspects of prevention, detection, evidence preservation, and reporting of criminal
activities in the international maritime environment; and
(3) the provision or recognition of off-site
training and certification courses in the
United States and foreign countries to develop
and provide the required training and certification described in subsection (a) and to enhance security awareness and security practices related to the preservation of evidence in
response to crimes on board passenger vessels.
(c) CERTIFICATION REQUIREMENT.—Beginning 2
years after the standards are established under
subsection (b), no vessel to which this section
applies may enter a United States port on a voyage (or voyage segment) on which a United
States citizen is a passenger unless there is at
least 1 crewmember onboard who is certified as
having successfully completed training in the
prevention, detection, evidence preservation,
and reporting of criminal activities in the international maritime environment on passenger
vessels under subsection (a).
(d) INTERIM TRAINING REQUIREMENT.—No vessel
to which this section applies may enter a United
States port on a voyage (or voyage segment) on
which a United States citizen is a passenger unless there is at least 1 crewmember onboard who
has been properly trained in the prevention detection, evidence preservation and the reporting
requirements of criminal activities in the international maritime environment. The owner of a
such a vessel shall maintain certification or
other documentation, as prescribed by the Secretary, verifying the training of such individual
and provide such documentation upon request
for inspection in connection with enforcement of
the provisions of this section. This subsection
shall take effect 1 year after the date of enactment of the Cruise Vessel Safety and Security
Act of 2010 and shall remain in effect until superseded by the requirements of subsection (c).
(e) CIVIL PENALTY.—Any person that violates
this section or a regulation under this section
shall be liable for a civil penalty of not more
than $50,000.
(f) DENIAL OF ENTRY.—The Secretary may
deny entry into the United States to a vessel to
which this section applies if the owner of the
vessel—
(1) commits an act or omission for which a
penalty may be imposed under subsection (e);
or
(2) fails to pay a penalty imposed on the
owner under subsection (e).
(Added Pub. L. 111–207, § 3(a), July 27, 2010, 124
Stat. 2250.)
REFERENCES IN TEXT
The date of enactment of the Cruise Vessel Security
and Safety Act of 2010, referred to in subsecs. (a) and
(d), is the date of enactment of Pub. L. 111–207, which
was approved July 27, 2010.

§ 3701

TITLE 46—SHIPPING

CHAPTER 37—CARRIAGE OF LIQUID BULK
DANGEROUS CARGOES
Sec.

3701.
3702.
3703.
3703a.
3704.
3705.
3706.
3707.
3708.
3709.
3710.
3711.
3712.
3713.
3714.
3715.
3716.
3717.
3718.
3719.

Definitions.
Application.
Regulations.
Tank vessel construction standards.
Coastwise trade vessels.
Crude oil tanker minimum standards.
Product carrier minimum standards.
Tanker minimum standards.
Self-propelled tank vessel minimum standards.
Exemptions.
Evidence of compliance by vessels of the
United States.
Evidence of compliance by foreign vessels.
Notification of noncompliance.
Prohibited acts.
Inspection and examination.
Lightering.
Tank washings.
Marine safety information system.
Penalties.
Reduction of oil spills from single hull nonself-propelled tank vessels.
AMENDMENTS

2006—Pub. L. 109–304, § 15(14), Oct. 6, 2006, 120 Stat.
1703, inserted ‘‘single hull’’ before ‘‘non-self-propelled’’
in item 3719.
1996—Pub. L. 104–324, title IX, § 901(c), Oct. 19, 1996, 110
Stat. 3947, added item 3719.
1990—Pub. L. 101–380, title IV, § 4115(c), Aug. 18, 1990,
104 Stat. 520, added item 3703a.
HISTORICAL AND REVISION NOTES
Chapter 37 consolidates the laws that are applicable
to vessels that transport oil or hazardous material in
bulk as cargo or cargo residue.
The history of Federal authority to carry out a tank
vessel safety program begins with the enactment of the
so-called Tank Vessel Act of 1936 which, as amended, is
presently codified in section 391a of title 46, United
States Code. The 1936 Act remained essentially the
same until it was amended by the Ports and Waterways
Safety Act of 1972. The 1972 amendment contained more
specific standards for the protection of a tank vessel
and its crew and added vessel standards to improve the
quality of the marine environment. After a rash of
tank vessel accidents during the latter part of 1976 and
early 1977 within our territorial seas and in nearby
coastal waters, there was an outpouring of public attention to the need to protect United States ports and
waterways, for the safety of tank vessels, and for the
protection of the marine environment. This led to the
enactment of the Port and Tanker Safety Act of 1978,
which provided broader and more extensive regulatory
authority over areas already regulated and over many
areas not previously regulated. It provided for improvements in the supervision and control of vessels of all
types operating in the navigable waters of the United
States, and in the safety of all tank vessels, foreign or
domestic, that transport or transfer oil or hazardous
cargoes in ports or places subject to the jurisdiction of
the United States. The 1978 amendments also reflect, in
part, certain tank vessel standards and requirements
that have been accepted internationally, in particular
those developed by the International Conference on
Tanker Safety and Pollution Prevention held in London in February, 1978.

§ 3701. Definitions
In this chapter—
(1) ‘‘existing’’, when referring to a type of
vessel to which this chapter applies, means a
vessel that is not a new vessel.

Page 62

[(2) Repealed. Pub. L. 100–424, § 8(c)(2), Sept.
9, 1988, 102 Stat. 1593.]
(3) ‘‘new’’, when referring to a type of vessel
to which this chapter applies, means a vessel—
(A) for which the building contract is
placed after June 1, 1979;
(B) in the absence of a building contract,
the keel of which is laid, or which is at a
similar stage of construction, after January
1, 1980;
(C) the delivery of which is after June 1,
1982; or
(D) that has undergone a major conversion
under a contract made after June 1, 1979, or
construction work that began after January
1, 1980, or was completed after June 1, 1982.
(4) ‘‘person’’ means an individual (even if not
a citizen or national of the United States), a
corporation, partnership, association, or other
entity (even if not organized or existing under
the laws of a State), the United States Government, a State or local government, a government of a foreign country, or an entity of one
of those governments.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 521; Pub. L.
99–509, title V, § 5102(b)(5), Oct. 21, 1986, 100 Stat.
1927; Pub. L. 100–424, § 8(c)(2), Sept. 9, 1988, 102
Stat. 1593.)
HISTORICAL AND REVISION NOTES
Revised section
3701(1)
3701(2)
3701(3)
3701(4)
3701(5)
3701(6)

Source section (U.S. Code)

..........................................
..........................................
..........................................
..........................................
..........................................
..........................................

46:391a(2)(R)
46:391a(2)(P)
46:391a(2)(Q)
46:391a(2)(F)
46:391a(2)(J)
46:391a(2)(K)

Section 3701 contains definitions that are of a special
nature with limited applicability to this chapter.
AMENDMENTS
1988—Par. (2). Pub. L. 100–424 struck out par. (2) which
read as follows: ‘‘ ‘major conversion’ means a conversion of an existing vessel that substantially changes
the dimensions or carrying capacity of the vessel or
changes the type of vessel or substantially prolongs its
life or that otherwise so changes the vessel that it is
essentially a new vessel, as decided by the Secretary.’’
1986—Pars. (5), (6). Pub. L. 99–509 struck out par. (5)
defining ‘‘State’’ as including Trust Territory of the
Pacific Islands in addition to its meaning under section
2101(36) of this title, and struck out par. (6) defining
‘‘United States’’ as including the Trust Territory of the
Pacific Islands in addition to its meaning under section
2101(44) of this title.
EFFECTIVE DATE
Chapter effective Apr. 15, 1984, see section 2(g)(1) of
Pub. L. 98–89, set out as a note under section 3101 of
this title.

§ 3702. Application
(a) Subject to subsections (b)–(e) of this section, this chapter applies to a tank vessel.
(b) This chapter does not apply to a documented vessel that would be subject to this
chapter only because of the transfer of fuel from
the fuel supply tanks of the vessel to offshore
drilling or production facilities in the oil industry if the vessel is—
(1) not a tanker; and
(2) in the service of oil exploitation.

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TITLE 46—SHIPPING

(c) This chapter does not apply to a fishing or
fish tender vessel of not more than 500 gross
tons as measured under section 14502 of this
title, or an alternate tonnage measured under
section 14302 of this title as prescribed by the
Secretary under section 14104 of this title when
engaged only in the fishing industry.
(d) This chapter does not apply to a fish processing vessel of not more than 5,000 gross tons as
measured under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary under
section 14104 of this title. However, the vessel is
subject to regulation by the Secretary when carrying flammable or combustible liquid cargo in
bulk.
(e) This chapter does not apply to a foreign
vessel on innocent passage on the navigable waters of the United States.
(f) This chapter does not apply to an oil spill
response vessel if—
(1) the vessel is used only in response-related
activities; or
(2) the vessel is—
(A) not more than 500 gross tons as measured under section 14502 of this title, or an
alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title;
(B) designated in its certificate of inspection as an oil spill response vessel; and
(C) engaged in response-related activities.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 521; Pub. L.
98–364, title IV, § 402(6), July 17, 1984, 98 Stat. 446;
Pub. L. 104–324, title VII, § 714, title XI, § 1104(b),
Oct. 19, 1996, 110 Stat. 3936, 3966; Pub. L. 111–281,
title VI, § 617(a)(2), Oct. 15, 2010, 124 Stat. 2973.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3702 ..............................................

46:391a

Section 3702, with certain exceptions, makes this
chapter applicable to any tank vessel operating in the
navigable waters of the United States or transferring
oil or hazardous materials in any port or place subject
to the jurisdiction of the United States, and which carries oil or any hazardous materials in bulk as cargo or
in residue, regardless of tonnage, size or manner of propulsion; whether it is self-propelled or not; whether it
is carrying freight or passengers for hire or not; and
whether it is a vessel of the United States or a foreign
vessel.
It exempts certain small vessels documented in the
service of oil exploitation, certain small tender and
fishing vessels used in the Northwest salmon or crab
fisheries, certain vessels used in the processing and assembling of fishery products used in the Northwest
fisheries, public vessels, and foreign vessels engaged on
innocent passage on the navigable waters of the United
States. However, processing vessels, while not treated
as tank vessels, are still subject to regulation when
carrying flammable or combustible liquid cargo in
bulk.
AMENDMENTS
2010—Subsec. (b)(1) to (3). Pub. L. 111–281 redesignated
pars. (2) and (3) as (1) and (2), respectively, and struck
out former par. (1), which read as follows: ‘‘not more
than 500 gross tons as measured under section 14502 of
this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary
under section 14104 of this title;’’.

§ 3703

1996—Subsec. (b)(1). Pub. L. 104–324, § 714(1), inserted
‘‘as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104
of this title’’ after ‘‘500 gross tons’’.
Subsec. (c). Pub. L. 104–324, § 714(2), inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘500 gross tons’’.
Subsec. (d). Pub. L. 104–324, § 714(3), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘5,000 gross tons’’.
Subsec. (f). Pub. L. 104–324, § 1104(b), added subsec. (f).
1984—Subsec. (c). Pub. L. 98–364, § 402(6)(A), substituted ‘‘This chapter does not apply to a fishing or
fish tender vessel of not more than 500 gross tons when
engaged only in the fishing industry’’ for ‘‘This chapter
does not apply to a cannery tender, fishing tender, or
fishing vessel of not more than 500 gross tons, used in
the salmon or crab fisheries of Alaska, Oregon, or
Washington, when engaged only in the fishing industry’’.
Subsec. (d). Pub. L. 98–364, § 402(6)(B), substituted
‘‘This chapter does not apply to a fish processing vessel
of not more than 5,000 gross tons’’ for ‘‘This chapter
does not apply to a vessel of not more than 5,000 gross
tons used in processing and assembling fishery products
of the fisheries of Alaska, Oregon, and Washington’’.

§ 3703. Regulations
(a) The Secretary shall prescribe regulations
for the design, construction, alteration, repair,
maintenance, operation, equipping, personnel
qualification, and manning of vessels to which
this chapter applies, that may be necessary for
increased protection against hazards to life and
property, for navigation and vessel safety, and
for enhanced protection of the marine environment. The Secretary may prescribe different
regulations applicable to vessels engaged in the
domestic trade, and also may prescribe regulations that exceed standards set internationally.
Regulations prescribed by the Secretary under
this subsection are in addition to regulations
prescribed under other laws that may apply to
any of those vessels. Regulations prescribed
under this subsection shall include requirements
about—
(1) superstructures, hulls, cargo holds or
tanks, fittings, equipment, appliances, propulsion machinery, auxiliary machinery, and
boilers;
(2) the handling or stowage of cargo, the
manner of handling or stowage of cargo, and
the machinery and appliances used in the handling or stowage;
(3) equipment and appliances for lifesaving,
fire protection, and prevention and mitigation
of damage to the marine environment;
(4) the manning of vessels and the duties,
qualifications, and training of the officers and
crew;
(5) improvements in vessel maneuvering and
stopping ability and other features that reduce the possibility of marine casualties;
(6) the reduction of cargo loss if a marine
casualty occurs; and
(7) the reduction or elimination of discharges during ballasting, deballasting, tank
cleaning, cargo handling, or other such activity.

§ 3703

TITLE 46—SHIPPING

(b) In prescribing regulations under subsection
(a) of this section, the Secretary shall consider
the types and grades of cargo permitted to be on
board a tank vessel.
(c) In prescribing regulations under subsection
(a) of this section, the Secretary shall establish
procedures for consulting with, and receiving
and considering the views of—
(1) interested departments, agencies, and instrumentalities of the United States Government;
(2) officials of State and local governments;
(3) representatives of port and harbor authorities and associations;
(4) representatives of environmental groups;
and
(5) other interested parties knowledgeable or
experienced in dealing with problems involving vessel safety, port and waterways safety,
and protection of the marine environment.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 522.)
HISTORICAL AND REVISION NOTES
Revised section
3703 ..............................................

Source section (U.S. Code)
46:391a(6)
46:391a(12)

Section 3703 requires the Secretary to issue regulations to implement this section. Specific items are listed to be included within the regulations issued. The
regulatory authority must be exercised under the Administrative Procedure Act and, in prescribing these
regulations, the Secretary must consider the kinds and
grades of cargo carried on board. Furthermore, in addition to any requirements of the Administrative Procedure Act, the Secretary must establish specific consultation procedures for considering the views of various specified interested officials, groups, and individuals. The procedures are intended to provide for consultation as early as possible in the regulatory process.
OIL FUEL TANK PROTECTION
Pub. L. 111–281, title VI, § 617(e), Oct. 15, 2010, 124 Stat.
2973, provided that:
‘‘(1) APPLICATION.—An offshore supply vessel of at
least 6,000 gross tons as measured under section 14302 of
title 46, United States Code, that is constructed under
a contract entered into after the date of enactment of
this Act [Oct. 15, 2010], or that is delivered after August
1, 2010, with an aggregate capacity of 600 cubic meters
or more of oil fuel, shall comply with the requirements
of Regulation 12A under Annex I to the Protocol of 1978
relating to the International Convention for the Prevention of Pollution from Ships, 1973, entitled Oil Fuel
Tank Protection, regardless of whether such vessel is
engaged in the coastwise trade or on an international
voyage.
‘‘(2) DEFINITION.—In this subsection the term ‘oil fuel’
means any oil used as fuel in connection with the propulsion and auxiliary machinery of the vessel in which
such oil is carried.’’
REGULATIONS FOR OFFSHORE SUPPLY VESSELS OF AT
LEAST 6,000 GROSS TONS
Pub. L. 111–281, title VI, § 617(f), Oct. 15, 2010, 124 Stat.
2974, as amended by Pub. L. 111–330, § 1(8), Dec. 22, 2010,
124 Stat. 3569, provided that:
‘‘(1) IN GENERAL.—Not later than January 1, 2012, the
Secretary of the department in which the Coast Guard
is operating shall promulgate regulations to implement
the amendments and authorities enacted by this section [amending sections 2101, 3702, 7312, and 8104 of this
title, enacting provisions set out as a note under this
section, and amending provisions set out as a note
under section 2101 of this title] for offshore supply ves-

Page 64

sels of at least 6,000 gross tons as measured under section 14302 of title 46, United States Code, and to ensure
the safe carriage of oil, hazardous substances, and individuals in addition to the crew on such vessels. The
final rule issued pursuant to such rulemaking may supersede the interim final rule promulgated under paragraph (2) of this subsection. In promulgating regulations under this subsection, the Secretary shall take
into consideration the characteristics of offshore supply vessels, their methods of operation, and their service in support of exploration, exploitation, or production of offshore mineral or energy resources.
‘‘(2) INTERIM FINAL RULE AUTHORITY.—As soon as is
practicable and without regard to the provisions of
chapters 5 and 6 of title 5, United States Code, the Secretary shall issue an interim final rule as a temporary
regulation implementing this section (including the
amendments made by this section) for offshore supply
vessels of at least 6,000 gross tons as measured under
section 14302 of title 46, United States Code, and to ensure the safe carriage of oil, hazardous substances, and
individuals in addition to the crew on such vessels.
‘‘(3) INTERIM PERIOD.—After the effective date of this
Act [Oct. 15, 2010], prior to the effective date of the regulations prescribed by paragraph (2) of this subsection,
and without regard to the provisions of chapters 5 and
6 of title 5, United States Code, and the offshore supply
vessel tonnage limits of applicable regulations and policy guidance promulgated prior to the date of enactment of this Act [Oct. 15, 2010], the Secretary of the department in which the Coast Guard is operating may—
‘‘(A) issue a certificate of inspection under section
3309 of title 46, United States Code, to an offshore
supply vessel of at least 6,000 gross tons as measured
under section 14302 of that title if the Secretary determines that such vessel’s arrangements and equipment meet the current Coast Guard requirements for
certification as a cargo and miscellaneous vessel;
‘‘(B) authorize a master, mate, or engineer who possesses an ocean or near coastal license and endorsement under part 11 of subchapter B of title 46, Code
of Federal Regulations, (or any successor regulation)
that qualifies the licensed officer for service on offshore supply vessels of at least 3,000 gross tons but
less than 6,000 gross tons, as measured under section
14302 of title 46, United States Code, to operate offshore supply vessels of at least 6,000 gross tons, as
measured under such section; and
‘‘(C) authorize any such master, mate, or engineer
who also possesses an ocean or near coastal license
and endorsement under such part that qualifies the
licensed officer for service on non trade-restricted
vessels of at least 1,600 gross tons but less than 3,000
gross tons, as measured under such section, to increase the tonnage limitation of such license and endorsement under section 11.402(c) of such part, using
service on vessels certificated under both subchapters
I and L of such title and measured only under such
section, except that such tonnage limitation shall
not exceed 10,000 gross tons as measured under such
section.’’
OIL TRANSFERS FROM VESSELS
Pub. L. 111–281, title VII, § 702, Oct. 15, 2010, 124 Stat.
2980, as amended by Pub. L. 111–330, § 1(10), Dec. 22, 2010,
124 Stat. 3570, provided that:
‘‘(a) REGULATIONS.—Within 1 year after the date of
enactment of this Act [Oct. 15, 2010], the Secretary of
the department in which the Coast Guard is operating
shall promulgate regulations to reduce the risks of oil
spills in operations involving the transfer of oil from or
to a tank vessel. The regulations—
‘‘(1) shall focus on operations that have the highest
risks of discharge, including operations at night and
in inclement weather;
‘‘(2) shall consider—
‘‘(A) requirements for the use of equipment, such
as putting booms in place for transfers, safety, and
environmental impacts;
‘‘(B) operational procedures such as manning
standards, communications protocols, and restrictions on operations in high-risk areas; or

Page 65

TITLE 46—SHIPPING

‘‘(C) both such requirements and operational procedures; and
‘‘(3) shall take into account the safety of personnel
and effectiveness of available procedures and equipment for preventing or mitigating transfer spills.
‘‘(b) APPLICATION WITH STATE LAWS.—The regulations
promulgated under subsection (a) do not preclude the
enforcement of any State law or regulation the requirements of which are at least as stringent as requirements under the regulations (as determined by the Secretary) that—
‘‘(1) applies in State waters; and
‘‘(2) does not conflict with, or interfere with the enforcement of, requirements and operational procedures under the regulations.’’
IMPROVEMENTS TO REDUCE HUMAN ERROR AND NEAR
MISS INCIDENTS
Pub. L. 111–281, title VII, § 703, Oct. 15, 2010, 124 Stat.
2981, as amended by Pub. L. 111–330, § 1(11), Dec. 22, 2010,
124 Stat. 3570, provided that:
‘‘(a) REPORT.—Within 1 year after the date of enactment of this Act [Oct. 15, 2010], the Secretary of the department in which the Coast Guard is operating shall
transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House
Committee on Transportation and Infrastructure that,
using available data—
‘‘(1) identifies the types of human errors that, combined, could cause oil spills, with particular attention
to human error caused by fatigue, in the past 10
years;
‘‘(2) in consultation with representatives of industry and labor and experts in the fields of marine casualties and human factors, identifies the most frequent types of near-miss oil spill incidents involving
vessels such as collisions, allisions, groundings, and
loss of propulsion in the past 10 years;
‘‘(3) describes the extent to which there are gaps in
the data required under paragraphs (1) and (2), including gaps in the ability to define and identify fatigue,
and explains the reason for those gaps; and
‘‘(4) includes recommendations by the Secretary
and representatives of industry and labor and experts
in the fields of marine casualties and human factors
to address the identified types of errors and any such
gaps in the data.
‘‘(b) MEASURES.—Based on the findings contained in
the report required by subsection (a), the Secretary
shall take appropriate action to reduce the risk of oil
spills caused by human error.
‘‘(c) CONFIDENTIALITY OF VOLUNTARILY SUBMITTED INFORMATION.—The identity of a person making a voluntary disclosure under this section, and any information obtained from any such voluntary disclosure, shall
be treated as confidential.
‘‘(d) DISCOVERY OF VOLUNTARILY SUBMITTED INFORMATION.—
‘‘(1) IN GENERAL.—Except as provided in this subsection, a party in a judicial proceeding may not use
discovery to obtain information or data collected or
received by the Secretary for use in the report required in subsection (a).
‘‘(2) EXCEPTION.—
‘‘(A) Notwithstanding paragraph (1), a court may
allow discovery by a party in a judicial proceeding
of data described in paragraph (1) if, after an in
camera review of the information or data, the court
decides that there is a compelling reason to allow
the discovery.
‘‘(B) When a court allows discovery in a judicial
proceeding as permitted under this paragraph, the
court shall issue a protective order—
‘‘(i) to limit the use of the data to the judicial
proceeding; and
‘‘(ii) to prohibit dissemination of the data to
any person who does not need access to the data
for the proceeding.
‘‘(C) A court may allow data it has decided is discoverable under this paragraph to be admitted into

§ 3703

evidence in a judicial proceeding only if the court
places the data under seal to prevent the use of the
data for a purpose other than for the proceeding.
‘‘(3) APPLICATION.—Paragraph (1) shall not apply
to—
‘‘(A) any disclosure made with actual knowledge
that the disclosure was false, inaccurate, or misleading; or
‘‘(B) any disclosure made with reckless disregard
as to the truth or falsity of that disclosure.
‘‘(e) RESTRICTION ON USE OF DATA.—Data that is voluntarily submitted for the purpose of the study required under subsection (a) shall not be used in an administrative action under chapter 77 of title 46, United
States Code.’’
[Pub. L. 111–330, § 1(11), Dec. 22, 2010, 124 Stat. 3570,
which directed amendment of section 703(a) of Pub. L.
111–281, set out above, by inserting ‘‘of the department
in which the Coast Guard is operating’’ after ‘‘Secretary’’, was executed by making the insertion after
‘‘Secretary’’ the first place appearing, to reflect the
probable intent of Congress.]
PRESERVATION OF STATE AUTHORITY
Pub. L. 111–281, title VII, § 711(c), Oct. 15, 2010, 124
Stat. 2987, provided that: ‘‘Nothing in this Act [see
Tables for classification] or in any other provision of
Federal law related to the regulation of maritime
transportation of oil shall affect, or be construed or interpreted as preempting, the authority of any State or
political subdivision thereof which require the escort
by one or more tugs of laden oil tankers in the areas
which are specified in section 4116(c) of the Oil Pollution Act of 1990 [Pub. L. 101–380] (46 U.S.C. 3703 note).’’
STUDIES ADDRESSING VARIOUS SOURCES OF OIL SPILL
RISK
Pub. L. 104–324, title IX, § 903, Oct. 19, 1996, 110 Stat.
3947, provided that:
‘‘(a) STUDY OF GROUP-5 FUEL OIL SPILLS.—
‘‘(1) DEFINITION.—In this subsection, the term
‘group-5 fuel oil’ means a petroleum-based oil that
has a specific gravity of greater than 1.0.
‘‘(2) COORDINATION OF STUDY.—The Secretary of
Transportation shall coordinate with the Marine
Board of the National Research Council to conduct a
study of the relative environmental and public health
risks posed by discharges of group-5 fuel oil.
‘‘(3) MATTERS TO BE INCLUDED.—The study under
this subsection shall include a review and analysis
of—
‘‘(A) the specific risks posed to the public health
or welfare of the United States, including fish,
shellfish and wildlife, public and private property,
shorelines, beaches, habitat, and other natural resources under the jurisdiction or control of the
United States, as a result of an actual or threatened discharge of group-5 fuel oil from a vessel or
facility;
‘‘(B) cleanup technologies currently available to
address actual or threatened discharge of group-5
fuel oil; and
‘‘(C) any technological and financial barriers that
prevent the prompt remediation of discharges of
group-5 fuel oil.
‘‘(4) REPORT.—Not later than 18 months after the
date of enactment of this Act [Oct. 19, 1996], the Secretary of Transportation shall submit to the Committee on Environment and Public Works and the Committee on Commerce, Science, and Transportation of
the Senate, and the Committee on Transportation
and Infrastructure of the House of Representatives a
report on the results of the study under this subsection.
‘‘(5) RULEMAKING.—If the Secretary of Transportation determines, based on the results of the study
under this subsection, that there are significant risks
to public health or the environment resulting from
the actual or threatened discharge of group-5 fuel oil

§ 3703

TITLE 46—SHIPPING

from a vessel or facility that cannot be technologically or economically addressed by existing or anticipated cleanup efforts, the Secretary may initiate
a rulemaking to take such action as is necessary to
abate the threat.
‘‘(b) STUDY OF AUTOMATIC FUELING SHUTOFF EQUIPMENT.—
‘‘(1) COORDINATION OF STUDY.—The Secretary of
Transportation shall coordinate with the Marine
Board of the National Research Council to conduct a
study of the unintentional or accidental discharge of
fuel oil during lightering or fuel loading or off-loading activity.
‘‘(2) MATTERS TO BE INCLUDED.—The study under
this subsection shall include a review and analysis of
current monitoring and fueling practices to determine the need for automatic fuel shutoff equipment
to prevent the accidental discharge of fuel oil, and
whether such equipment is needed as a supplement to
or replacement of existing preventive equipment or
procedures.
‘‘(3) REPORT.—Not later than 18 months after the
date of enactment of this Act [Oct. 19, 1996], the Secretary of Transportation shall submit to the Committee on Environment and Public Works and the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report on the results of the study under this subsection.
‘‘(4) RULEMAKING.—If the Secretary of Transportation determines, based on the results of the study
conducted under this subsection, that the use of automatic oil shutoff equipment is necessary to prevent
the actual or threatened discharge of oil during
lightering or fuel loading or off[-]loading activity,
the Secretary may initiate a rulemaking to take such
action as is necessary to abate a threat to public
health or the environment.
‘‘(c) LIGHTERING STUDY.—The Secretary of Transportation shall coordinate with the Marine Board of the
National Research Council on a study into the actual
incidence and risk of oil spills from lightering operations off the coast of the United States. Among other
things, the study shall address the manner in which existing regulations are serving to reduce oil spill risks.
The study shall take into account current or proposed
international rules and standards and also include recommendations on measures that would be likely to further reduce the risks of oil spills from lightering operations. Not later than 18 months after the date of enactment of this Act [Oct. 19, 1996], the Secretary shall
submit a report on the study to the Committee on
Commerce, Science, and Transportation of the Senate
and the Committee on Transportation and Infrastructure of the House of Representatives.’’
EXISTING TANK VESSEL RESEARCH
Pub. L. 104–324, title XI, § 1134, Oct. 19, 1996, 110 Stat.
3985, provided that:
‘‘(a) FUNDING.—The Secretary of Transportation shall
take steps to allocate funds appropriated for research,
development, testing, and evaluation, including the
combination of funds from any source available and authorized for this purpose, to ensure that any Government-sponsored project intended to evaluate double
hull alternatives that provide equal or greater protection to the marine environment, or interim solutions
to remediate potential environmental damage resulting
from oil spills from existing tank vessels, commenced
prior to the date of enactment of this section [Oct. 19,
1996], is fully funded for completion by the end of fiscal
year 1997. Any vessel construction or repair necessary
to carry out the purpose of this section must be performed in a shipyard located in the United States.
‘‘(b) USE OF PUBLIC VESSELS.—The Secretary may
provide vessels owned by, or demise chartered to, and
operated by the Government and not engaged in commercial service, without reimbursement, for use in and
the support of projects sponsored by the Government
for research, development, testing, evaluation, and

Page 66

demonstration of new or improved technologies that
are effective in preventing or mitigating oil discharges
and protecting the environment.’’
OIL SPILL PREVENTION AND RESPONSE TECHNOLOGY
TEST AND EVALUATION PROGRAM
Pub. L. 103–206, title III, § 310, Dec. 20, 1993, 107 Stat.
2425, provided that:
‘‘(a) Not later than 6 months after the date of enactment of this Act [Dec. 20, 1993], the Secretary of Transportation shall establish a program to evaluate the
technological feasibility and environmental benefits of
having tank vessels carry oil spill prevention and response technology. To implement the program the Secretary shall—
‘‘(1) publish in the Federal Register an invitation
for submission of proposals including plans and procedures for testing; and
‘‘(2) review and evaluate technology using, to the
maximum extent possible, existing evaluation and
performance standards.
‘‘(b) The Secretary shall, to the maximum extent possible, incorporate in the program established in subsection (a), the results of existing studies and evaluations of oil spill prevention and response technology
carried on tank vessels.
‘‘(c) Not later than 2 years after the date of the enactment of this Act [Dec. 20, 1993], the Secretary shall
evaluate the results of the program established in subsection (a) and submit a report to Congress with recommendations on the feasibility and environmental benefits of, and appropriate equipment and utilization
standards for, requiring tank vessels to carry oil spill
prevention and response equipment.
‘‘(d) Not later than 6 months after the date of the enactment of this Act [Dec. 20, 1993], the Secretary shall
evaluate and report to the Congress on the feasibility
of using segregated ballast tanks for emergency transfer of cargo and storage of recovered oil.’’
REGULATIONS REQUIRING PERIODIC GAUGING OF PLATING THICKNESS FOR OIL CARRYING COMMERCIAL VESSELS

Pub. L. 101–380, title IV, § 4109, Aug. 18, 1990, 104 Stat.
515, provided that: ‘‘Not later than 1 year after the date
of the enactment of this Act [Aug. 18, 1990], the Secretary shall issue regulations for vessels constructed or
adapted to carry, or that carry, oil in bulk as cargo or
cargo residue—
‘‘(1) establishing minimum standards for plating
thickness; and
‘‘(2) requiring, consistent with generally recognized
principles of international law, periodic gauging of
the plating thickness of all such vessels over 30 years
old operating on the navigable waters or the waters
of the exclusive economic zone.’’
REGULATIONS REQUIRING USE OF OVERFILL AND TANK
LEVEL OR MONITORING DEVICES ON OIL CARRYING
COMMERCIAL VESSELS
Pub. L. 101–380, title IV, § 4110, Aug. 18, 1990, 104 Stat.
515, as amended by Pub. L. 108–293, title VII, § 702(a),
Aug. 9, 2004, 118 Stat. 1068, provided that:
‘‘(a) STANDARDS.—The Secretary may establish, by
regulation, minimum standards for devices for warning
persons of overfills and tank levels of oil in cargo tanks
and devices for monitoring the pressure of oil cargo
tanks.
‘‘(b) USE.—No sooner than 1 year after the Secretary
prescribes regulations under subsection (a), the Secretary may issue regulations establishing, consistent
with generally recognized principles of international
law, requirements concerning the use of—
‘‘(1) overfill devices, and
‘‘(2) tank level or pressure monitoring devices,
which are referred to in subsection (a) and which meet
any standards established by the Secretary under subsection (a), on vessels constructed or adapted to carry,
or that carry, oil in bulk as cargo or cargo residue on

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TITLE 46—SHIPPING

the navigable waters and the waters of the exclusive
economic zone.’’
TANKER NAVIGATION SAFETY STANDARDS STUDY
Pub. L. 101–380, title IV, § 4111, Aug. 18, 1990, 104 Stat.
515, directed Secretary, not later than 2 years after
Aug. 18, 1990, to conduct a study and report to Congress
on whether existing laws and regulations are adequate
to ensure safe navigation of vessels transporting oil or
hazardous substances in bulk on navigable waters and
waters of the exclusive economic zone.
RULES GOVERNING OPERATION OF VESSELS ON AUTOPILOT OR WITH UNATTENDED ENGINE ROOM
Pub. L. 101–380, title IV, § 4114(a), Aug. 18, 1990, 104
Stat. 517, provided that: ‘‘In order to protect life, property, and the environment, the Secretary shall initiate
a rulemaking proceeding within 180 days after the date
of the enactment of this Act [Aug. 18, 1990] to define
the conditions under, and designate the waters upon,
which tank vessels subject to section 3703 of title 46,
United States Code, may operate in the navigable waters with the auto-pilot engaged or with an unattended
engine room.’’
REGULATIONS REQUIRING ESCORTS FOR CERTAIN
TANKERS; ‘‘TANKER’’ DEFINED
Pub. L. 101–380, title IV, § 4116(c), (d), Aug. 18, 1990, 104
Stat. 523, as amended by Pub. L. 111–281, title VII,
§ 711(b)(1), Oct. 15, 2010, 124 Stat. 2987, provided that:
‘‘(c) ESCORTS FOR CERTAIN TANKERS.—
‘‘(1) IN GENERAL.—The Secretary shall initiate issuance of regulations under section 3703(a)(3) of title 46,
United States Code, to define those areas, including
Prince William Sound, Alaska, and Rosario Strait
and Puget Sound, Washington (including those portions of the Strait of Juan de Fuca east of Port Angeles, Haro Strait, and the Strait of Georgia subject to
United States jurisdiction), on which single hulled
tankers over 5,000 gross tons transporting oil in bulk
shall be escorted by at least two towing vessels (as
defined under section 2101 of title 46, United States
Code) or other vessels considered appropriate by the
Secretary.
‘‘(2) PRINCE WILLIAM SOUND, ALASKA.—
‘‘(A) IN GENERAL.—The requirement in paragraph
(1) relating to single hulled tankers in Prince William Sound, Alaska, described in that paragraph
being escorted by at least 2 towing vessels or other
vessels considered to be appropriate by the Secretary (including regulations promulgated in accordance with section 3703(a)(3) of title 46, United
States Code, as set forth in part 168 of title 33, Code
of Federal Regulations (as in effect on March 1,
2009) implementing this subsection with respect to
those tankers) shall apply to double hulled tankers
over 5,000 gross tons transporting oil in bulk in
Prince William Sound, Alaska.
‘‘(B) IMPLEMENTATION OF REQUIREMENTS.—The
Secretary of the department in which the Coast
Guard is operating shall prescribe interim final regulations to carry out subparagraph (A) as soon as
practicable without notice and hearing pursuant to
section 553 of title 5 of the United States Code.’’
‘‘(d) TANKER DEFINED.—In this section [amending section 8502 of this title] the term ‘tanker’ has the same
meaning the term has in section 2101 of title 46, United
States Code.’’
[Pub. L. 111–281, title VII, § 711(b)(2), Oct. 15, 2010, 124
Stat. 2987, provided that: ‘‘The amendments made by
subsection (b) [amending section 4116(c) of Pub. L.
101–380, set out above] take effect on the date that is 90
days after the date of enactment of this Act [Oct. 15,
2010].’’]

§ 3703a. Tank vessel construction standards
(a) Except as otherwise provided in this section, a vessel to which this chapter applies shall
be equipped with a double hull—

§ 3703a

(1) if it is constructed or adapted to carry, or
carries, oil in bulk as cargo or cargo residue;
and
(2) when operating on the waters subject to
the jurisdiction of the United States, including the Exclusive Economic Zone.
(b) This section does not apply to—
(1) a vessel used only to respond to a discharge of oil or a hazardous substance;
(2) a vessel of less than 5,000 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title
equipped with a double containment system
determined by the Secretary to be as effective
as a double hull for the prevention of a discharge of oil;
(3) before January 1, 2015—
(A) a vessel unloading oil in bulk at a
deepwater port licensed under the Deepwater
Port Act of 1974 (33 U.S.C. 1501 et seq.); or
(B) a delivering vessel that is offloading in
lightering activities—
(i) within a lightering zone established
under section 3715(b)(5) of this title; and
(ii) more than 60 miles from the baseline
from which the territorial sea of the
United States is measured;
(4) a vessel documented under chapter 121 of
this title that was equipped with a double hull
before August 12, 1992;
(5) a barge of less than 1,500 gross tons (as
measured under chapter 145 of this title) carrying refined petroleum product in bulk as
cargo in or adjacent to waters of the Bering
Sea, Chukchi Sea, and Arctic Ocean and waters tributary thereto and in the waters of the
Aleutian Islands and the Alaskan Peninsula
west of 155 degrees west longitude; or
(6) a vessel in the National Defense Reserve
Fleet pursuant to section 11 of the Merchant
Ship Sales Act of 1946 (50 App. U.S.C. 1744).
(c)(1) In this subsection, the age of a vessel is
determined from the later of the date on which
the vessel—
(A) is delivered after original construction;
(B) is delivered after completion of a major
conversion; or
(C) had its appraised salvage value determined by the Coast Guard and is qualified for
documentation as a wrecked vessel under section 12112 of this title.
(2) A vessel of less than 5,000 gross tons as
measured under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary under
section 14104 of this title for which a building
contract or contract for major conversion was
placed before June 30, 1990, and that is delivered
under that contract before January 1, 1994, and
a vessel of less than 5,000 gross tons as measured
under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104 of this title that had its appraised salvage value determined by the Coast Guard before June 30, 1990, and that qualifies for documentation as a wrecked vessel under section

§ 3703a

TITLE 46—SHIPPING

12112 of this title before January 1, 1994, may not
operate in the navigable waters or the Exclusive
Economic Zone of the United States after January 1, 2015, unless the vessel is equipped with a
double hull or with a double containment system determined by the Secretary to be as effective as a double hull for the prevention of a discharge of oil.
(3) A vessel for which a building contract or
contract for major conversion was placed before
June 30, 1990, and that is delivered under that
contract before January 1, 1994, and a vessel
that had its appraised salvage value determined
by the Coast Guard before June 30, 1990, and that
qualifies for documentation as a wrecked vessel
under section 12112 of this title before January 1,
1994, may not operate in the navigable waters or
Exclusive Economic Zone of the United States
unless equipped with a double hull—
(A) in the case of a vessel of at least 5,000
gross tons but less than 15,000 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title—
(i) after January 1, 1995, if the vessel is 40
years old or older and has a single hull, or is
45 years old or older and has a double bottom
or double sides;
(ii) after January 1, 1996, if the vessel is 39
years old or older and has a single hull, or is
44 years old or older and has a double bottom
or double sides;
(iii) after January 1, 1997, if the vessel is 38
years old or older and has a single hull, or is
43 years old or older and has a double bottom
or double sides;
(iv) after January 1, 1998, if the vessel is 37
years old or older and has a single hull, or is
42 years old or older and has a double bottom
or double sides;
(v) after January 1, 1999, if the vessel is 36
years old or older and has a single hull, or is
41 years old or older and has a double bottom
or double sides;
(vi) after January 1, 2000, if the vessel is 35
years old or older and has a single hull, or is
40 years old or older and has a double bottom
or double sides; and
(vii) after January 1, 2005, if the vessel is 25
years old or older and has a single hull, or is
30 years old or older and has a double bottom
or double sides;
(B) in the case of a vessel of at least 15,000
gross tons but less than 30,000 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title—
(i) after January 1, 1995, if the vessel is 40
years old or older and has a single hull, or is
45 years old or older and has a double bottom
or double sides;
(ii) after January 1, 1996, if the vessel is 38
years old or older and has a single hull, or is
43 years old or older and has a double bottom
or double sides;
(iii) after January 1, 1997, if the vessel is 36
years old or older and has a single hull, or is
41 years old or older and has a double bottom
or double sides;

Page 68

(iv) after January 1, 1998, if the vessel is 34
years old or older and has a single hull, or is
39 years old or older and has a double bottom
or double sides;
(v) after January 1, 1999, if the vessel is 32
years old or older and has a single hull, or 37
years old or older and has a double bottom
or double sides;
(vi) after January 1, 2000, if the vessel is 30
years old or older and has a single hull, or is
35 years old or older and has a double bottom
or double sides;
(vii) after January 1, 2001, if the vessel is 29
years old or older and has a single hull, or is
34 years old or older and has a double bottom
or double sides;
(viii) after January 1, 2002, if the vessel is
28 years old or older and has a single hull, or
is 33 years old or older and has a double bottom or double sides;
(ix) after January 1, 2003, if the vessel is 27
years old or older and has a single hull, or is
32 years old or older and has a double bottom
or double sides;
(x) after January 1, 2004, if the vessel is 26
years old or older and has a single hull, or is
31 years old or older and has a double bottom
or double sides; and
(xi) after January 1, 2005, if the vessel is 25
years old or older and has a single hull, or is
30 years old or older and has a double bottom
or double sides; and
(C) in the case of a vessel of at least 30,000
gross tons as measured under section 14502 of
this title, or an alternate tonnage measured
under section 14302 of this title as prescribed
by the Secretary under section 14104 of this
title—
(i) after January 1, 1995, if the vessel is 28
years old or older and has a single hull, or 33
years old or older and has a double bottom
or double sides;
(ii) after January 1, 1996, if the vessel is 27
years old or older and has a single hull, or is
32 years old or older and has a double bottom
or double sides;
(iii) after January 1, 1997, if the vessel is 26
years old or older and has a single hull, or is
31 years old or older and has a double bottom
or double sides;
(iv) after January 1, 1998, if the vessel is 25
years old or older and has a single hull, or is
30 years old or older and has a double bottom
or double sides;
(v) after January 1, 1999, if the vessel is 24
years old or older and has a single hull, or 29
years old or older and has a double bottom
or double sides; and
(vi) after January 1, 2000, if the vessel is 23
years old or older and has a single hull, or is
28 years old or older and has a double bottom
or double sides.
(4) Except as provided in subsection (b) of this
section—
(A) a vessel that has a single hull may not
operate after January 1, 2010; and
(B) a vessel that has a double bottom or double sides may not operate after January 1,
2015.
(d) The operation of barges described in subsection (b)(5) outside waters described in that

Page 69

§ 3703a

TITLE 46—SHIPPING

subsection shall be on any conditions as the Secretary may require.
(e)(1) For the purposes of this section and except as otherwise provided in paragraphs (2) and
(3) of this subsection, the gross tonnage of a vessel shall be the gross tonnage that would have
been recognized by the Secretary on July 1, 1997,
as the tonnage measured under section 14502 of
this title, or as an alternate tonnage measured
under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title.
(2)(A) The Secretary may waive the application of paragraph (1) to a tank vessel if—
(i) the owner of the tank vessel applies to
the Secretary for the waiver before January 1,
1998;
(ii) the Secretary determines that—
(I) the owner of the tank vessel has entered into a binding agreement to alter the
tank vessel in a shipyard in the United
States to reduce the gross tonnage of the
tank vessel by converting a portion of the
cargo tanks of the tank vessel into protectively located segregated ballast tanks; and
(II) that conversion will result in a significant reduction in the risk of a discharge of
oil;
(iii) at least 60 days before the date of the issuance of the waiver, the Secretary—
(I) publishes notice that the Secretary has
received the application and made the determinations required by clause (ii), including a
description of the agreement entered into
pursuant to clause (ii)(I); and
(II) provides an opportunity for submission
of comments regarding the application; and
(iv) the alterations referred to in clause
(ii)(I) are completed before the later of—
(I) the date by which the first special survey of the tank vessel is required to be completed after the date of the enactment of the
National Defense Authorization Act for Fiscal Year 1998; or
(II) July 1, 1999.
(B) A waiver under subparagraph (A) shall not
be effective after the expiration of the 3-year period beginning on the first date on which the
tank vessel would have been prohibited by subsection (c) from operating if the alterations referred to in subparagraph (A)(ii)(I) were not
made.
(3) This subsection does not apply to a tank
vessel that, before July 1, 1997, had undergone,
or was the subject of a contract for, alterations
that reduce the gross tonnage of the tank vessel,
as shown by reliable evidence acceptable to the
Secretary.
(Added Pub. L. 101–380, title IV, § 4115(a), Aug. 18,
1990, 104 Stat. 517; amended Pub. L. 104–324, title
VII, § 715, title XI, § 1103, Oct. 19, 1996, 110 Stat.
3937, 3966; Pub. L. 105–85, div. C, title XXXVI,
§ 3606, Nov. 18, 1997, 111 Stat. 2077; Pub. L. 109–304,
§ 15(15), Oct. 6, 2006, 120 Stat. 1703.)
REFERENCES IN TEXT
The Deepwater Port Act of 1974, referred to in subsec.
(b)(3)(A), is Pub. L. 93–627, Jan. 3, 1975, 88 Stat. 2126, as
amended, which is classified generally to chapter 29
(§ 1501 et seq.) of Title 33, Navigation and Navigable Waters. For complete classification of this Act to the

Code, see Short Title note set out under section 1501 of
Title 33 and Tables.
The date of the enactment of the National Defense
Authorization Act for Fiscal Year 1998, referred to in
subsec. (e)(2)(A)(iv)(I), is the date of enactment of Pub.
L. 105–85, which was approved Nov. 18, 1997.
AMENDMENTS
2006—Subsec. (c)(1)(C), (2), (3). Pub. L. 109–304 substituted ‘‘documentation as a wrecked vessel under section 12112 of this title’’ for ‘‘documentation under section 4136 of the Revised Statutes of the United States
(46 App. U.S.C. 14)’’.
1997—Subsec. (e). Pub. L. 105–85 added subsec. (e).
1996—Subsec. (b)(2). Pub. L. 104–324, § 715(1), inserted
‘‘as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104
of this title’’ after ‘‘5,000 gross tons’’.
Subsec. (b)(4) to (6). Pub. L. 104–324, § 1103(1), added
pars. (4) to (6).
Subsec. (c)(2). Pub. L. 104–324, § 715(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘5,000 gross tons’’ in two places.
Subsec. (c)(3)(A). Pub. L. 104–324, § 715(3), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘15,000 gross tons’’.
Subsec. (c)(3)(B). Pub. L. 104–324, § 715(4), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘30,000 gross tons’’.
Subsec. (c)(3)(C). Pub. L. 104–324, § 715(5), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘30,000 gross tons’’.
Subsec. (d). Pub. L. 104–324, § 1103(2), added subsec. (d).
EFFECTIVE DATE
Section applicable to incidents occurring after Aug.
18, 1990, see section 1020 of Pub. L. 101–380, set out as a
note under section 2701 of Title 33, Navigation and Navigable Waters.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
TANK VESSELS OVER 5,000 GROSS TONS TO COMPLY
UNTIL JANUARY 1, 2015, WITH ENVIRONMENTALLY
PROTECTIVE STRUCTURAL AND OPERATIONAL REQUIREMENTS

Pub. L. 101–380, title IV, § 4115(b), Aug. 18, 1990, 104
Stat. 520, provided that: ‘‘The Secretary shall, within 12
months after the date of the enactment of this Act
[Aug. 18, 1990], complete a rulemaking proceeding and
issue a final rule to require that tank vessels over 5,000
gross tons affected by section 3703a of title 46, United
States Code, as added by this section, comply until
January 1, 2015, with structural and operational requirements that the Secretary determines will provide
as substantial protection to the environment as is economically and technologically feasible.’’
STUDY ON OTHER STRUCTURAL AND OPERATIONAL TANK
VESSEL REQUIREMENTS
Pub. L. 101–380, title IV, § 4115(e), Aug. 18, 1990, 104
Stat. 520, as amended by Pub. L. 105–383, title IV, § 423,

§ 3704

TITLE 46—SHIPPING

Nov. 13, 1998, 112 Stat. 3440; Pub. L. 108–293, title VII,
§ 705, Aug. 9, 2004, 118 Stat. 1075; Pub. L. 109–241, title IX,
§ 901(n), July 11, 2006, 120 Stat. 565, provided that:
‘‘(1) OTHER REQUIREMENTS.—Not later than 6 months
after the date of enactment of this Act [Aug. 18, 1990],
the Secretary shall determine, based on recommendations from the National Academy of Sciences or other
qualified organizations, whether other structural and
operational tank vessel requirements will provide protection to the marine environment equal to or greater
than that provided by double hulls, and shall report to
the Congress that determination and recommendations
for legislative action.
‘‘(2) REVIEW AND ASSESSMENT.—The Secretary shall—
‘‘(A) periodically review recommendations from the
National Academy of Sciences and other qualified organizations on methods for further increasing the environmental and operational safety of tank vessels;
‘‘(B) not later than 5 years after the date of enactment of this Act [Aug. 18, 1990], assess the impact of
this section on the safety of the marine environment
and the economic viability and operational makeup
of the maritime oil transportation industry; and
‘‘(C) report the results of the review and assessment
to the Congress with recommendations for legislative
or other action.
‘‘(3) No later than one year after the date of enactment of the Coast Guard and Maritime Transportation
Act of 2004 [Aug. 9, 2004], the Secretary shall, taking
into account the recommendations contained in the report by the Marine Board of the National Research
Council entitled ‘Environmental Performance of Tanker Design in Collision and Grounding’ and dated 2001,
establish and publish an environmental equivalency
evaluation index (including the methodology to develop
that index) to assess overall outflow performance due
to collisions and groundings for double hull tank vessels and alternative designs.’’
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

§ 3704. Coastwise trade vessels
A segregated ballast tank, a crude oil washing
system, or an inert gas system, required by this
chapter or a regulation prescribed under this
chapter, on a vessel entitled to engage in the
coastwise trade under chapter 551 of this title
shall be installed in the United States (except
the trust territories). A vessel failing to comply
with this section may not engage in the coastwise trade.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 522; Pub. L.
109–304, § 15(16), Oct. 6, 2006, 120 Stat. 1703.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3704 ..............................................

46:391a(7)

Section 3704 requires any tank vessel that is entitled
to engage in the coastwise trade to install certain
equipment in the United States under the penalty of
losing coastwise trading privileges if the installation
work is done in a foreign country.
AMENDMENTS
2006—Pub. L. 109–304 substituted ‘‘chapter 551 of this
title’’ for ‘‘section 27 of the Merchant Marine Act, 1920
(46 App. U.S.C. 883),’’.

§ 3705. Crude oil tanker minimum standards
(a) A new crude oil tanker of at least 20,000
deadweight tons shall be equipped with—

Page 70

(1) protectively located segregated ballast
tanks;
(2) a crude oil washing system; and
(3) a cargo tank protection system consisting of a fixed deck froth system and a fixed
inert gas system.
(b)(1) An existing crude oil tanker of at least
40,000 deadweight tons shall be equipped with—
(A) segregated ballast tanks; or
(B) a crude oil washing system.
(2) Compliance with paragraph (1) of this subsection may be delayed until June 1, 1985, for
any tanker of less than 70,000 deadweight tons
that has dedicated clean ballast tanks.
(c) An existing crude oil tanker of at least
20,000 deadweight tons but less than 40,000 deadweight tons, and at least 15 years of age, shall be
equipped with segregated ballast tanks or a
crude oil washing system before January 2, 1986,
or the date on which the tanker reaches 15 years
of age, whichever is later.
(d) An existing crude oil tanker of at least
20,000 deadweight tons shall be equipped with an
inert gas system. However, for a crude oil tanker of less than 40,000 deadweight tons not fitted
with high capacity tank washing machines, the
Secretary may grant an exemption if the vessel’s owner can show clearly that compliance
would be unreasonable and impracticable due to
the vessel’s design characteristics.
(e) A crude oil tanker engaged in transferring
oil from an offshore oil exploitation or production facility on the Outer Continental Shelf of
the United States shall be equipped with segregated ballast tanks, or may operate with dedicated clean ballast tanks or special ballast arrangements. However, the tanker shall comply
with other applicable minimum standards of
this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 523.)
HISTORICAL AND REVISION NOTES
Revised section
3705(a)
3705(b)
3705(c)
3705(d)
3705(e)

.........................................
.........................................
.........................................
.........................................
.........................................

Source section (U.S. Code)
46:391a(7)(A)
46:391a(7)(D)
46:391a(7)(E)
46:391a(7)(F)
46:391a(7)(M)

Section 3705 requires compliance with certain minimum standards by a crude oil tanker, which is self-propelled. In general, the minimum required standards are
consistent with those international standards that
have been adopted as Protocols to the 1974 Safety of
Life at Sea Convention and the 1973 Marine Pollution
Convention.
Section 3705(a) requires new crude oil tankers of
20,000 deadweight tons or above to have protectively located segregated ballast tanks, a crude oil washing system, and a specified cargo tank protection system.
Section 3705(b) requires existing crude oil tankers of
40,000 deadweight tons or above to have segregated ballast tanks or a crude oil washing system. Compliance
may be delayed until June 1, 1985 for smaller tankers
that have dedicated clean ballast tanks.
Section 3705(c) requires existing crude oil tankers of
20,000 deadweight tons or above, but less than 40,000
deadweight tons, that are 15 years or older, to have segregated ballast tanks or a crude oil washing system by
January 1, 1985 or if less than 15 years old, by the date
on which it reaches 15 years of age.
Section 3705(d) requires existing crude oil tankers of
20,000 deadweight tons or above, to install an inert gas

Page 71

system. An exemption for crude oil tankers of less than
40,000 deadweight tons not fitted with high-capacity
tank washing machines may be granted by the Secretary, only if it is demonstrated that compliance
would be unreasonable and impracticable due to the
vessel’s design characteristics.
Section 3705(e) requires existing crude oil tankers of
20,000 deadweight tons or above, engaged in the transfer
of oil from Outer Continental Shelf oil exploitation or
production facilities, to have segregated ballast tanks
or be operated with dedicated clean ballast tanks or
special ballast arrangements.

§ 3706. Product carrier minimum standards
(a) A new product carrier of at least 30,000
deadweight tons shall be equipped with protectively located segregated ballast tanks.
(b) A new product carrier of at least 20,000
deadweight tons shall be equipped with a cargo
tank protection system consisting of a fixed
deck froth system and a fixed inert gas system
or, if the product carrier carries dedicated products incompatible with the cargo tank protection system, an alternate protection system authorized by the Secretary.
(c) An existing product carrier of at least
40,000 deadweight tons shall be equipped with
segregated ballast tanks or may operate with
dedicated clean ballast tanks.
(d) An existing product carrier of at least
20,000 deadweight tons but less than 40,000 deadweight tons, and at least 15 years of age, shall be
equipped with segregated ballast tanks or may
operate with dedicated clean ballast tanks before January 2, 1986, or the date on which it
reaches 15 years of age, whichever is later.
(e) An existing product carrier of at least
40,000 deadweight tons, or an existing product
carrier of at least 20,000 deadweight tons but less
than 40,000 deadweight tons that is fitted with
high-capacity tank washing machines, shall be
equipped with an inert gas system.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 523.)
HISTORICAL AND REVISION NOTES
Revised section
3706(a)
3706(b)
3706(c)
3706(d)
3706(e)

§ 3707

TITLE 46—SHIPPING

.........................................
.........................................
.........................................
.........................................
.........................................

Source section (U.S. Code)
46:391a(7)(B)
46:391a(7)(C)
46:391a(7)(G)
46:391a(7)(H)
46:391a(7)(I)

Section 3706 requires compliance with certain minimum standards by a product carrier, which is a selfpropelled tank vessel.
Section 3706(a) requires new product carriers of 30,000
deadweight tons or above, to have protectively located
segregated ballast tanks.
Section 3706(b) requires new product carriers of 20,000
deadweight tons or above, to have a cargo tank protection system consisting of a fixed deck froth system or
a fixed inert gas system. If the products carried are incompatible with the cargo tank protection system,
then an alternative protection system may be authorized.
Section 3706(c) requires existing product carriers of
40,000 deadweight tons or above, to have segregated ballast tanks or to operate with dedicated clean ballast
tanks.
Section 3706(d) requires existing product carriers of
20,000 deadweight tons or above, but less than 40,000
deadweight tons, that are 15 years or older, to have segregated ballast tanks by January 1, 1985, or on the date
on which it reaches 15 years of age or, in the alternative, that the vessel operate with dedicated clean
ballast tanks.

Section 3706(e) requires existing product carriers of
40,000 deadweight tons or above, or to existing product
carriers, fitted with high-capacity tank washing machines, of 20,000 deadweight tons but less than 40,000
deadweight tons, to install an inert gas system.

§ 3707. Tanker minimum standards
(a) A new tanker of at least 10,000 gross tons as
measured under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary under
section 14104 of this title shall be equipped
with—
(1) 2 remote steering gear control systems
operable separately from the navigating
bridge;
(2) the main steering gear control in the
steering gear compartment;
(3) means of communications and rudder
angle indicators on the navigating bridge, a
remote steering gear control station, and the
steering gear compartment;
(4) at least 2 identical and adequate power
units for the main steering gear;
(5) an alternative and adequate power supply, either from an emergency source of electrical power or from another independent
source of power located in the steering gear
compartment; and
(6) means of automatic starting and stopping
of power units with attendant alarms at all
steering stations.
(b) An existing tanker of at least 10,000 gross
tons as measured under section 14502 of this
title, or an alternate tonnage measured under
section 14302 of this title as prescribed by the
Secretary under section 14104 of this title shall
be equipped with—
(1) 2 remote steering gear control systems
operable separately from the navigating
bridge;
(2) the main steering gear control in the
steering gear compartment; and
(3) means of communications and rudder
angle indicators on the navigating bridge, a
remote steering gear control station, and the
steering gear compartment.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 524; Pub. L.
104–324, title VII, § 716, Oct. 19, 1996, 110 Stat.
3937.)
HISTORICAL AND REVISION NOTES
Revised section
3707(a) .........................................
3707(b) .........................................

Source section (U.S. Code)
46:391a(7)(K)
46:391a(7)(L)

Section 3707 requires compliance with certain minimum standards by a tanker, which is a self-propelled
tank vessel.
Section 3707(a) requires new tankers of 10,000 gross
tons or above, to have two remote steering gear control
systems, a main steering gear control in the steering
gear compartment, a means of communications and
rudder angle indicators at specified locations, two or
more specified power units for the main steering gear,
an alternative and adequate power supply of specified
characteristics, and a means of automatic operation of
power units, with attendant alarms at all steering stations.
Section 3707(b) requires existing tankers of 10,000
gross tons or above, to have two remote steering gear
control systems, a main steering gear control in the

§ 3708

TITLE 46—SHIPPING

steering gear compartment, and a means of communication and rudder angle indicators at specified locations.

Page 72

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 524.)
HISTORICAL AND REVISION NOTES

AMENDMENTS

Revised section

1996—Subsec. (a). Pub. L. 104–324, § 716(1), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘10,000 gross tons’’ in introductory provisions.
Subsec. (b). Pub. L. 104–324, § 716(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘10,000 gross tons’’.

3709 ..............................................

§ 3708. Self-propelled
standards

tank

vessel

minimum

A self-propelled tank vessel of at least 10,000
gross tons as measured under section 14502 of
this title, or an alternate tonnage measured
under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title
shall be equipped with—
(1) a dual radar system with short-range and
long-range capabilities, each with true-north
features;
(2) an electronic relative motion analyzer
that is at least functionally equivalent to
equipment complying with specifications established by the Secretary of Transportation;
(3) an electronic position-fixing device;
(4) adequate communications equipment;
(5) a sonic depth finder;
(6) a gyrocompass; and
(7) up-to-date charts.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 524; Pub. L.
104–324, title VII, § 717, Oct. 19, 1996, 110 Stat.
3937.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3708 ..............................................

46:391a(7)(J)

Section 3708 requires compliance with certain minimum standards by a self-propelled tank vessel. These
requirements apply to any tank vessel of 10,000 gross
tons or above with no distinction being made as to
whether or not the vessel is ‘‘primarily’’ constructed or
adapted to carry oil or hazardous material in bulk in
the cargo spaces. These vessels are required to be
equipped with a dual radar system, a computerized relative motion analyzer, an electronic position fixing device, adequate communications equipment, a sonic
depth finder, a gyrocompass, and up-to-date charts.
AMENDMENTS
1996—Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title’’ after
‘‘10,000 gross tons’’.

§ 3709. Exemptions
The Secretary may exempt a vessel from the
minimum requirements established by sections
3704–3706 of this title for segregated ballast,
crude oil washing, and dedicated clean ballast if
the Secretary decides that shore-based reception
facilities are a preferred method of handling ballast and that adequate facilities are readily
available.

Source section (U.S. Code)
46:391a(7)(N)

Section 3709 provides the Secretary with the authority to exempt certain minimum tanker requirements of
sections 3704, 3705, and 3706 when shorebased reception
facilities are a better way of handling ballast and when
the facilities are adequate and readily available.

§ 3710. Evidence of compliance by vessels of the
United States
(a) A vessel of the United States to which this
chapter applies that has on board oil or hazardous material in bulk as cargo or cargo residue
must have a certificate of inspection issued
under this part, endorsed to indicate that the
vessel complies with regulations prescribed
under this chapter.
(b) Each certificate endorsed under this section is valid for not more than 5 years and may
be renewed as specified by the Secretary. In appropriate circumstances, the Secretary may
issue a temporary certificate valid for not more
than 30 days. A certificate shall be suspended or
revoked if the Secretary finds that the vessel
does not comply with the conditions under
which the certificate was issued.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 524; Pub. L.
104–324, title VI, § 605(b), Oct. 19, 1996, 110 Stat.
3931.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3710 ..............................................

46:391a(8)(A)
46:391a(8)(E)

Section 3710 prohibits any vessels of the United
States subject to this chapter from having on board oil
or hazardous material in bulk as cargo or in residue,
unless it has a required Certificate of Inspection endorsed to indicate vessel compliance with applicable
regulations. Certificates shall be valid for a period not
to exceed two years and may be renewed as specified by
the Secretary. The Secretary may issue temporary certificates of not more than thirty days duration and
may revoke or suspend any certificate under designated circumstances.
AMENDMENTS
1996—Subsec. (b). Pub. L. 104–324 substituted ‘‘5
years’’ for ‘‘24 months’’.

§ 3711. Evidence of compliance by foreign vessels
(a) A foreign vessel to which this chapter applies may operate on the navigable waters of the
United States, or transfer oil or hazardous material in a port or place under the jurisdiction of
the United States, only if the vessel has been issued a certificate of compliance by the Secretary. The Secretary may issue the certificate
only after the vessel has been examined and
found to be in compliance with this chapter and
regulations prescribed under this chapter. The
Secretary may accept any part of a certificate,
endorsement, or document, issued by the government of a foreign country under a treaty,
convention, or other international agreement to
which the United States is a party, as a basis for
issuing a certificate of compliance.

Page 73

§ 3714

TITLE 46—SHIPPING

(b) A certificate issued under this section is
valid for not more than 24 months and may be
renewed as specified by the Secretary. In appropriate circumstances, the Secretary may issue a
temporary certificate valid for not more than 30
days.
(c) A certificate shall be suspended or revoked
if the Secretary finds that the vessel does not
comply with the conditions under which the certificate was issued.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 525.)
HISTORICAL AND REVISION NOTES

in compliance with this chapter or a regulation prescribed under this chapter;
(2) fail to comply with a lawful directive issued under this chapter; or
(3) carry a type or grade of oil or hazardous
material in bulk as cargo or cargo residue unless its certificate is endorsed to allow that
carriage.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 525.)
HISTORICAL AND REVISION NOTES
Revised section
3713 ..............................................

Revised section
3711 ..............................................

Source section (U.S. Code)
46:391a(8)(B)
46:391a(8)(C)
46:391a(8)(E)

Section 3711 prohibits any foreign vessel from operating on the navigable waters of the United States or
from transferring oil or hazardous material in any port
or place under the jurisdiction of the United States, unless it has a certificate of compliance issued by the
Secretary indicating that the vessel has been examined
and found to be in compliance with the provisions of
the applicable regulations. It also authorizes the Secretary to accept, in whole or in part, an appropriate
foreign certificate issued pursuant to any international
agreement to which the United States is a party, as a
basis for issuing the certificate of compliance. This
means that the Secretary does not have to accept foreign certificates as evidence of compliance, but may
take additional action to assure compliance with applicable domestic laws and regulations and international
treaty provisions.

§ 3712. Notification of noncompliance
The Secretary shall notify the owner, charterer, managing operator, agent, master, or individual in charge of a vessel found not to be in
compliance with a regulation prescribed under
this part and state how compliance may be
achieved.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 525.)
HISTORICAL AND REVISION NOTES
Revised section
3712 ..............................................

Source section (U.S. Code)
46:391a(13)

Source section (U.S. Code)
46:391a(8)(A)
46:391a(8)(B)

Section 3712 requires the Secretary to notify appropriate parties when a vessel is found not to be in compliance with applicable requirements, standards, or
regulations and what remedial steps must be taken in
order to comply with them.

§ 3713. Prohibited acts
(a) A person may not—
(1) violate this chapter or a regulation prescribed under this chapter;
(2) refuse to permit any official, authorized
by the Secretary to enforce this chapter, to
board a vessel or to enter a shore area, place,
or premises, under a person’s control to make
an inspection under this chapter; or
(3) refuse to obey a lawful directive issued
under this chapter.
(b) A vessel to which this chapter applies may
not—
(1) operate on the navigable waters of the
United States or use a port or place subject to
the jurisdiction of the United States when not

Section 3713(a) prohibits any person from violating
any provision of this chapter or a regulation prescribed
under its authority. It prohibits the refusal to permit
authorized officials to board a vessel or to enter a shore
area for the purposes of inspection of the vessel or
premises. It also prohibits the refusal to obey any lawful directive issued under this chapter.
Section 3713(b) prohibits any vessel, subject to the
provisions of this chapter from operating on the navigable waters of the United States, or from using any
port or place subject to the jurisdiction of the United
States while not in compliance with any provision of
applicable law or regulation. It further prohibits any
vessel from failing to comply with a lawful directive issued pursuant to the authority of this chapter. It also
prohibits the vessel from carrying oil or hazardous material as cargo or cargo residue unless its certificate is
so endorsed to permit its carriage.

§ 3714. Inspection and examination
(a)(1) The Secretary shall have each vessel to
which this chapter applies inspected or examined at least once each year.
(2) Each of those vessels that is more than 10
years of age shall undergo a special and detailed
inspection of structural strength and hull integrity as specified by the Secretary.
(3) The Secretary may make contracts for conducting inspections or examinations in the
United States and in foreign countries. An inspector conducting an inspection or examination under contract may not issue a certificate
of inspection or a certificate of compliance, but
the inspector may issue a temporary certificate.
(4) The Secretary shall prescribe by regulation
reasonable fees for an inspection or examination
conducted under this section outside the United
States, or which, when involving a foreign vessel, is conducted under a contract authorized by
paragraph (3) of this subsection. The owner,
charterer, or managing operator of a vessel inspected or examined by the Secretary is liable
for the fees. Amounts received as fees shall be
deposited in the Treasury.
(5) The Secretary may allow provisional entry
of a vessel to conduct an inspection or examination under this chapter.
(b) Each vessel to which this chapter applies
shall have on board those documents the Secretary considers necessary for inspection and
enforcement, including documents listing—
(1) the type, grade, and approximate quantities of cargo on board;
(2) the shipper and consignee of the cargo;
(3) the places of origin and destination of the
vessel; and
(4) the name of an agent in the United States
authorized to accept service of legal process.

§ 3715

TITLE 46—SHIPPING

(c) Each vessel to which this chapter applies
that operates in the United States shall have a
person designated as authorized to accept service of legal process for the vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 526; Pub. L.
99–307, § 1(8), May 19, 1986, 100 Stat. 445.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3714 ..............................................

46:391a(15)

Section 3714(a) requires the Secretary to establish a
program for the inspection of tank vessels, foreign or
domestic, at least once each year. The Committee contemplates that United States vessels will be issued a 2
year certificate of inspection with a mid-period examination. The Committee also contemplates that foreign-flag vessels will continue to be tracked and
boarded at least once a year or when they first arrive
in the United States. The Secretary may examine the
foreign-flag tank vessel but may accept, as a basis for
the issuance of a certificate of compliance, in whole or
in part a foreign-issued certificate.
Each vessel over 10 years of age must undergo a special and detailed inspection of structural strength and
hull integrity, as specified by the Secretary. An inspection or examination may be conducted by any officer
authorized by the Secretary. The Committee expects
that, whenever possible, a qualified marine inspector
will be used wherever the vessel undergoes these 10year inspections. The Secretary may also contract for
inspections or examinations in the United States and
in foreign countries.
The primary reason for including a provision that
permits the contracting for the conduct of inspections
and examinations is to provide flexibility in foreign
areas where Coast Guard marine inspectors are not normally available.
A contract inspector may be authorized to act on behalf of the Secretary, but may not issue a certificate of
inspection or compliance. The inspector may, however,
issue a temporary certificate.
The Committee understands that the 10-year inspections of United States-flag and foreign-flag vessels may
occur at the time the vessel is scheduled for shipyard
availability to complete the periodic classification society survey.
The Secretary is also authorized and directed to prescribe by regulation reasonable fees for certain inspections or examinations conducted pursuant to this section based on the cost incurred. The owner of any vessel inspected or examined by the Secretary or his designee shall be liable for the fee. Amounts received as
fees under this section are to be deposited in the Treasury.
Section 3714(b) requires each vessel subject to this
chapter to have on board those documents the Secretary declares are necessary for inspection or enforcement, including, but not limited to documents indicating the kind, grade, and approximate quantities of any
cargo on board; the shipper and consignee of the cargo;
the points of origin and destination of the vessel; and
the name of an agent in the United States authorized
to accept legal process.
Section 3714(c) requires each vessel subject to this
chapter to have a person authorized to accept service of
legal process for the vessel.
AMENDMENTS
1986—Subsec. (a)(4). Pub. L. 99–307 substituted ‘‘charterer’’ for ‘‘charter’’.

§ 3715. Lightering
(a) A vessel may transfer oil or hazardous material in a port or place subject to the jurisdiction of the United States, when the cargo has

Page 74

been transferred from another vessel on the navigable waters of the United States or in the marine environment, only if—
(1) the transfer was conducted consistent
with regulations prescribed by the Secretary;
(2) both the delivering and receiving vessels
had on board, at the time of transfer, a certificate of inspection or a certificate of compliance, as would have been required under section 3710 or 3711 of this title, had the transfer
taken place in a port or place subject to the
jurisdiction of the United States; and 1
(3) the delivering and the receiving vessel
had on board at the time of transfer, a certificate of financial responsibility as would have
been required under section 1016 of the Oil Pollution Act of 1990, had the transfer taken place
in a place subject to the jurisdiction of the
United States;
(4) the delivering and the receiving vessel
had on board at the time of transfer, evidence
that each vessel is operating in compliance
with section 311(j) of the Federal Water Pollution Control Act (33 U.S.C. 1321(j)); and
(5) the delivering and the receiving vessel
are operating in compliance with section 3703a
of this title.
(b) The Secretary shall prescribe regulations
to carry out subsection (a) of this section. The
regulations shall include provisions on—
(1) minimum safe operating conditions, including sea state, wave height, weather, proximity to channels or shipping lanes, and other
similar factors;
(2) the prevention of spills;
(3) equipment for responding to a spill;
(4) the prevention of any unreasonable interference with navigation or other reasonable
uses of the high seas, as those uses are defined
by treaty, convention, or customary international law;
(5) the establishment of lightering zones;
and
(6) requirements for communication and prearrival messages.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 526; Pub. L.
101–380, title IV, § 4115(d), Aug. 18, 1990, 104 Stat.
520.)
HISTORICAL AND REVISION NOTES
Revised section
3715 ..............................................

Source section (U.S. Code)
46:391a(17)

Section 3715 requires the Secretary to control lightering operations; that is, the transferring of cargoes at
sea from large deep-draft vessels to shallow-draft vessels for subsequent transfer to shoreside terminals due
to the inability of the larger tank vessels to enter shallow ports. It prohibits a tank vessel from unloading
any cargo of oil or hazardous material at any port or
terminal under the jurisdiction of the United States,
unless the cargo has been transferred in accordance
with lightering regulations. It also prohibits the shoreside transfer unless both the delivering and receiving
vessels involved in the prior lightering had on board at
the time of the offshore transfer, the certificates that
would have been required had the transfer taken place
in a port or place subject to the jurisdiction of the
United States.
1 So

in original. The word ‘‘and’’ probably should not appear.

Page 75

§ 3718

TITLE 46—SHIPPING

The regulations to be prescribed by the Secretary
shall include a number of specific considerations but
may include any related matters deemed necessary to
promote navigation and vessel safety and protection of
the marine environment. The Secretary must consider
standards for minimum safe operating conditions, including sea state, wave height, weather, vessel traffic,
the prevention of oil spills, and oil spill response equipment. In regulating this operation, there must not be
any unreasonable interference with international navigation or reasonable uses of the high seas, and there
must be established lightering zones with attendant
communications and prearrival message requirements.
REFERENCES IN TEXT
Section 1016 of the Oil Pollution Act of 1990, referred
to in subsec. (a)(3), is classified to section 2716 of Title
33, Navigation and Navigable Waters.
AMENDMENTS
1990—Subsec. (a)(3) to (5). Pub. L. 101–380 added pars.
(3) to (5).
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
EFFECTIVE DATE
Pub. L. 98–89, § 2(g)(2), Aug. 26, 1983, 97 Stat. 599, provided that: ‘‘Section 3715(a) of title 46 (as enacted by
section 1 of this Act) is effective on the day after the
effective date of the regulations prescribed by the Secretary under section 3715(b) of title 46.’’ [Regulations
effective Apr. 26, 1984, see 49 F.R. 11170, Mar. 26, 1984.]

(a) A vessel may not transfer cargo in a port
or place subject to the jurisdiction of the United
States if, before arriving, the vessel has discharged tank washings containing oil or hazardous material in preparation for loading at that
port or place in violation of the laws of the
United States or in a manner or quantities inconsistent with a treaty to which the United
States is a party.
(b) The Secretary shall establish effective control and supervisory measures to carry out this
section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 527.)
HISTORICAL AND REVISION NOTES
Revised section

(b) On written request from the Secretary, the
head of each department, agency, or instrumentality of the United States Government shall
provide available information that the Secretary considers necessary to confirm the information received under subsection (a) of this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 527.)
HISTORICAL AND REVISION NOTES
Revised section

§ 3716. Tank washings

3716 ..............................................

ter applies that operates on the navigable waters of the United States, or that transfers oil or
hazardous material in a port or place under the
jurisdiction of the United States. In acquiring
this information, the Secretary shall make full
use of publicly available information. The Secretary may by regulation require the vessel to
provide information that the Secretary considers necessary to carry out this subsection, including—
(1) the name of each person with an ownership interest in the vessel;
(2) details of compliance with the financial
responsibility requirements of applicable laws
or regulations;
(3) registration information, including all
changes in the name of the vessel;
(4) the history of marine casualties and serious repair problems of the vessel; and
(5) a record of all inspections and examinations of a vessel conducted under section 3714
of this title.

Source section (U.S. Code)
46:391a(18)

Section 3716 requires the Secretary to establish effective control and supervisory measures to prohibit the
discharge of tank washings by dumping at sea. The section also prohibits the dumping vessel from subsequently loading any cargo at a port or terminal subject
to the jurisdiction of the United States. This section is
intended to prohibit the practice of discharging a cargo
of oil or hazardous substance, then going to sea to
clean tanks by pumping tank washing mixtures overboard, and then returning to a port or terminal subject
to the jurisdiction of the United States for the purpose
of loading a cargo that was incompatible with the prior
cargo.

§ 3717. Marine safety information system
(a) The Secretary shall establish a marine
safety information system that shall contain information about each vessel to which this chap-

3717 ..............................................

Source section (U.S. Code)
46:391a(16)

Section 3717 requires the Secretary to establish a marine safety information system which is to contain selected information on any tank vessel, foreign or domestic, that comes within the jurisdiction of the
United States. This information must be recorded and
maintained up-to-date and is available from a number
of sources. In some instances, this information is required as a condition of entry. This information shall
include certain ownership interests, financial responsibility information, all registered names that the vessel has had since it was built, the present and prior
countries of registry, history of accidents or serious repair problems, record of the various inspections or examinations required, and any other data the Secretary
deems appropriate to carry out the intent of the section. The section also provides for interagency cooperation and the furnishing of available data and information.

§ 3718. Penalties
(a)(1) A person violating this chapter or a regulation prescribed under this chapter is liable to
the United States Government for a civil penalty of not more than $25,000. Each day of a continuing violation is a separate violation.
(2) Each vessel to which this chapter applies
that is operated in violation of this chapter or a
regulation prescribed under this chapter is liable in rem for a civil penalty under this subsection.
(b) A person willfully and knowingly violating
this chapter or a regulation prescribed under
this chapter commits a class D felony.
(c) Instead of the penalties provided by subsection (b) of this section, a person willfully and
knowingly violating this chapter or a regulation

§ 3719

TITLE 46—SHIPPING

prescribed under this chapter, and using a dangerous weapon, or engaging in conduct that
causes bodily injury or fear of imminent bodily
injury to an official authorized to enforce this
chapter or a regulation prescribed under this
chapter, commits a class C felony.
(d) The district courts of the United States
have jurisdiction to restrain a violation of this
chapter or a regulation prescribed under this
chapter.
(e)(1) If any owner, operator, or individual in
charge of a vessel is liable for any penalty or
fine under this section, or if reasonable cause
exists to believe that the owner, operator, or individual in charge may be subject to any penalty or fine under this section, the Secretary of
Homeland Security, upon the request of the Secretary, shall with respect to such vessel refuse
or revoke any clearance required by section
60105 of this title.
(2) Clearance or a permit refused or revoked
under this subsection may be granted upon filing of a bond or other surety satisfactory to the
Secretary.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 527; Pub. L.
101–380, title IV, § 4302(c), Aug. 18, 1990, 104 Stat.
538; Pub. L. 104–324, title III, § 312(d), Oct. 19, 1996,
110 Stat. 3921; Pub. L. 109–304, § 15(17), Oct. 6,
2006, 120 Stat. 1703.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

3718 ..............................................

46:391a(14)

Section 3718 provides the authority to assess civil
penalties for violation of the chapter or regulations.
Each violation subjects the violator to a penalty not to
exceed $25,000 for each violation and, in the case of a
continuing violation, each day shall constitute a separate violation and the vessel is liable in rem. The procedures for assessing penalties are found in section 2107
of part A.
With respect to criminal penalties, a willful or knowing violation of the section or a regulation subjects the
offender, upon conviction, to a criminal fine of not
more than $50,000 for each violation or imprisonment
for not more than 1 year, or both. If the willful and
knowing violation involves the use of a dangerous
weapon or constitutes an assault or battery, the offender is subjected to a fine of not more than $100,000
or imprisonment of not more than 10 years, or both.
In addition, where the owner or operator of the vessel
is subject to any of the penalties prescribed, the Secretary of the Treasury is directed to withhold required
Customs clearance, at the request of the Secretary.
Clearance may be granted upon the filing of a bond or
other surety satisfactory to the Secretary.
AMENDMENTS
2006—Subsec. (e)(1). Pub. L. 109–304 substituted ‘‘Secretary of Homeland Security’’ and ‘‘section 60105 of this
title’’ for ‘‘Secretary of the Treasury’’ and ‘‘section
4197 of the Revised Statutes of the United States (46
App. U.S.C. 91)’’, respectively.
1996—Subsec. (e). Pub. L. 104–324 amended subsec. (e)
generally. Prior to amendment, subsec. (e) read as follows: ‘‘At the request of the Secretary, the Secretary of
the Treasury shall withhold or revoke the clearance required by section 4197 of the Revised Statutes (46 App.
U.S.C. 91) of a vessel the owner or operator of which is
subject to a penalty under this section. Clearance may
be granted on filing a bond or other surety satisfactory
to the Secretary.’’
1990—Subsec. (b). Pub. L. 101–380, § 4302(c)(1), substituted ‘‘commits a class D felony’’ for ‘‘shall be fined

Page 76

not more than $50,000, imprisoned for not more than 5
years, or both’’.
Subsec. (c). Pub. L. 101–380, § 4302(c)(2), substituted
‘‘commits a class C felony’’ for ‘‘shall be fined not more
than $100,000, imprisoned for not more than 10 years, or
both’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 3719. Reduction of oil spills from single hull
non-self-propelled tank vessels
The Secretary shall, in consultation with the
Towing Safety Advisory Committee and taking
into consideration the characteristics, methods
of operation, and the size and nature of service
of single hull non-self-propelled tank vessels and
towing vessels, prescribe regulations requiring a
single hull non-self-propelled tank vessel that
operates in the open ocean or coastal waters, or
the vessel towing it, to have at least one of the
following:
(1) A crew member and an operable anchor
on board the tank vessel that together are capable of arresting the tank vessel without additional assistance under reasonably foreseeable sea conditions.
(2) An emergency system on the tank vessel
or towing vessel that without additional assistance under reasonably foreseeable sea conditions will allow the tank vessel to be retrieved by the towing vessel if the tow line
ruptures.
(3) Any other measure or combination of
measures that the Secretary determines will
provide protection against grounding of the
tank vessel comparable to that provided by
the measures described in paragraph (1) or (2).
(Added Pub. L. 104–324, title IX, § 901(a), Oct. 19,
1996, 110 Stat. 3946.)
REGULATIONS
Pub. L. 104–324, title IX, § 901(b), Oct. 19, 1996, 110 Stat.
3946, provided that: ‘‘The Secretary of the department
in which the Coast Guard is operating shall issue regulations required under section 3719 of title 46, United
States Code, as added by subsection (a), by not later
than October 1, 1997.’’

[CHAPTER 39—REPEALED]
[§§ 3901, 3902. Repealed. Pub. L. 107–171, title X,
§ 10418(a)(20), May 13, 2002, 116 Stat. 508]
Section 3901, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 528,
related to regulations for accommodations for export
animals.
Section 3902, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 528,
related to penalties.

CHAPTER 41—UNINSPECTED VESSELS
GENERALLY
Sec.

4101.
4102.
4103.
[4104.
4105.
4106.

Application.
Safety equipment.
Exemptions.
Repealed.]
Uninspected passenger vessels.
Penalties.
HISTORICAL AND REVISION NOTES

Chapter 41 applies to vessels that are not subject to
inspection and certification under chapter 33.

Page 77

§ 4102

TITLE 46—SHIPPING

The Federal authority to regulate uninspected vessels originated with the Motorboat Act of 1910 (Public
Law 61–201, 36 Stat. 462) when Congress established
standards with respect to navigation lights, machinery
requirements, life preservers, and for the licensing of
operators on small vessels carrying passengers. This
was an extension of Federal regulatory authority over
certain non-steam-propelled vessels, that is, those recreational vessels and commercial vessels that are propelled by machinery other than steam.
Thirty years later, the 1910 Act was amended by the
Motorboat Act of 1940 (Public Law 76–484, 54 Stat. 163),
which added to the equipment that was required and
provided for other regulatory controls. In this manner
the Federal Government continued to exercise some degree of maritime safety supervision over the commercial and recreational vessel sector that was ‘‘uninspected’’. This was important because steam towing
vessels were converting to diesel propulsion and were
therefore no longer subject to the detailed periodic and
extensive hull, machinery, and equipment inspections
of a Federal agency. In addition, the number of recreational vessels primarily propelled by gasoline were
increasing and were also suffering casualties from explosions and fires.
AMENDMENTS
1990—Pub. L. 101–595, title VI, § 603(3)(B), Nov. 16, 1990,
104 Stat. 2993, struck out item 4104 ‘‘Regulations’’.
1984—Pub. L. 98–364, title IV, § 402(7)(B), July 17, 1984,
98 Stat. 446, inserted ‘‘GENERALLY’’ in chapter heading.

§ 4101. Application
This chapter applies to an uninspected vessel
not subject to chapter 45 of this title—
(1) on the navigable waters of the United
States; or
(2) owned in the United States and operating
on the high seas.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 528; Pub. L.
100–424, § 8(b), Sept. 9, 1988, 102 Stat. 1593.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

4101 ..............................................

46:526u

Section 4101 makes this chapter applicable to uninspected vessels, as defined in section 2101(43), that operate on the navigable waters of the United States or
that are owned in the United States and while operating on the high seas. Therefore a vessel that operates
on waters that are considered to be solely State waters
would not be subject to these Federal requirements.

of life preservers and other lifesaving devices for
individuals on board uninspected vessels.
(c) Each uninspected vessel shall have the carburetors of each engine of the vessel (except an
outboard motor) using gasoline as fuel, equipped
with an efficient flame arrestor, backfire trap,
or other similar device prescribed by regulation.
(d) Each uninspected vessel using a volatile
liquid as fuel shall be provided with the means
prescribed by regulation for properly and efficiently ventilating the bilges of the engine and
fuel tank compartments, so as to remove any
explosive or flammable gases.
(e) Each manned uninspected vessel owned in
the United States and operating beyond 3 nautical miles from the baselines from which the
territorial sea of the United States is measured
or beyond three nautical miles from the coastline of the Great Lakes shall be equipped with
the number and type of alerting and locating
equipment, including emergency position indicating radio beacons, prescribed by the Secretary.
(f)(1) The Secretary, in consultation with the
Towing Safety Advisory Committee and taking
into consideration the characteristics, methods
of operation, and nature of service of towing
vessels, may require the installation, maintenance, and use of a fire suppression system or
other measures to provide adequate assurance
that fires on board towing vessels can be suppressed under reasonably foreseeable circumstances.
(2) The Secretary shall require under paragraph (1) the use of a fire suppression system or
other measures to provide adequate assurance
that a fire on board a towing vessel that is towing a non-self-propelled tank vessel can be suppressed under reasonably foreseeable circumstances.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 528; Pub. L.
99–640, § 16, Nov. 10, 1986, 100 Stat. 3552; Pub. L.
100–424, § 2(c), Sept. 9, 1988, 102 Stat. 1590; Pub. L.
100–540, § 1(a), Oct. 28, 1988, 102 Stat. 2719; Pub. L.
104–324, title IX, § 902(a), Oct. 19, 1996, 110 Stat.
3947; Pub. L. 105–383, title III, § 301(b)(3), Nov. 13,
1998, 112 Stat. 3417; Pub. L. 111–281, title VI, § 619,
Oct. 15, 2010, 124 Stat. 2975.)
HISTORICAL AND REVISION NOTES
Revised section

AMENDMENTS
1988—Pub. L. 100–424 inserted ‘‘not subject to chapter
45 of this title’’ after ‘‘an uninspected vessel’’.

4102(a)
4102(b)
4102(c)
4102(d)

Source section (U.S. Code)

.........................................
.........................................
.........................................
.........................................

46:526g
46:526e
46:526i
46:526j

EFFECTIVE DATE
Chapter effective Apr. 15, 1984, see section 2(g)(1) of
Pub. L. 98–89, set out as a note under section 3101 of
this title.

§ 4102. Safety equipment
(a) Each uninspected vessel propelled by machinery shall be provided with the number, type,
and size of fire extinguishers, capable of promptly and effectively extinguishing burning liquid
fuel, that may be prescribed by regulation. The
fire extinguishers shall be kept in condition for
immediate and effective use and so placed as to
be readily accessible.
(b) The Secretary shall prescribe regulations
requiring the installation, maintenance, and use

Section 4102 requires uninspected vessels to comply
with certain provisions that incorporate minimum
safety equipment and construction requirements. The
Committee intends that the term life preserver include
all types of personal equipment, including exposure
suits with floatation characteristics.
AMENDMENTS
2010—Subsec. (b). Pub. L. 111–281 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ‘‘Each uninspected vessel propelled by machinery
shall carry at least one readily accessible life preserver
or other lifesaving device, of the type prescribed by
regulation, for each individual on board.’’
1998—Subsec. (e). Pub. L. 105–383 substituted ‘‘owned
in the United States and operating beyond 3 nautical
miles from the baselines from which the territorial sea

§ 4103

TITLE 46—SHIPPING

of the United States is measured’’ for ‘‘operating on the
high seas’’.
1996—Subsec. (f). Pub. L. 104–324 added subsec. (f).
1988—Subsec. (e). Pub. L. 100–540 amended subsec. (e)
generally without regard to the prior repeal of subsec.
(e) by Pub. L. 100–424.
Pub. L. 100–424 struck out subsec. (e) which read as
follows: ‘‘Each uninspected fishing, fish processing, or
fish tender vessel operating on the high seas shall be
equipped with the number and type of emergency
position indicating radio beacons prescribed by regulation.’’ See section 4502(a)(7) of this title.
1986—Subsec. (e). Pub. L. 99–640 added subsec. (e).

shall, by regulation, require certain additional
equipment which may include liferafts or other
lifesaving equipment, construction standards, or
specify additional operating standards for those
uninspected passenger vessels defined in section
2101(42)(A) of this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 529; Pub. L.
103–206, title V, § 511(b), Dec. 20, 1993, 107 Stat.
2442.)
HISTORICAL AND REVISION NOTES
Revised section

REGULATIONS
Pub. L. 104–324, title IX, § 902(b), Oct. 19, 1996, 110 Stat.
3947, provided that: ‘‘The Secretary of the department
in which the Coast Guard is operating shall issue regulations establishing the requirement described in subsection (f)(2) of section 4102 of title 46, United States
Code, as added by this section, by not later than October 1, 1997.’’
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

Page 78

Source section (U.S. Code)

4105 ..............................................

46:1452
46:1453

Section 4105 provides that an uninspected passenger
vessel is subject to Chapter 43, as a recreational vessel
even when it is carrying not more than six passengers.
REFERENCES IN TEXT
The date of enactment of this subsection, referred to
in subsec. (b), is the date of enactment of Pub. L.
103–206, which was approved Dec. 20, 1993.
AMENDMENTS
1993—Pub. L. 103–206 designated existing provisions as
subsec. (a) and added subsec. (b).

§ 4103. Exemptions
(a) The Secretary may exempt a vessel from
any part of this chapter if, under regulations
prescribed by the Secretary (including regulations on special operating conditions), the Secretary finds that—
(1) good cause exists for granting an exemption; and
(2) the safety of the vessel and individuals on
board will not be adversely affected.
(b) Section 4102(a) of this title does not apply
to a vessel propelled by outboard motors when
competing in a race previously arranged and announced or, if the vessel is designed and intended only for racing, when operated incidental
to tuning up the vessel and its engines for the
race.

§ 4106. Penalties
If a vessel to which this chapter applies is operated in violation of this chapter or a regulation prescribed under this chapter, the owner,
charterer, managing operator, agent, master,
and individual in charge are each liable to the
United States Government for a civil penalty of
not more than $5,000. The vessel also is liable in
rem for the penalty.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 529; Pub. L.
100–540, § 3, Oct. 28, 1988, 102 Stat. 2719.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

4106 ..............................................

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 529; Pub. L.
100–540, § 2, Oct. 28, 1988, 102 Stat. 2719.)
HISTORICAL AND REVISION NOTES
Revised section

Section 4106 provides a civil penalty of $100 for a violation of this chapter or a regulation under this chapter. The vessel also is liable in rem.

Source section (U.S. Code)

4103 ..............................................

46:525h

Section 4103 contains an exemption from carrying
fire extinguishers, for on a vessel competing in an organized race or a vessel designed and intended for racing
only.
AMENDMENTS
1988—Pub. L. 100–540 added subsec. (a) and designated
existing provisions as subsec. (b).

[§ 4104. Repealed. Pub. L. 101–595, title VI,
§ 603(3)(A), Nov. 16, 1990, 104 Stat. 2993]
Section, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 529, required Secretary to prescribe regulations to carry out
provisions of this chapter.

§ 4105. Uninspected passenger vessels
(a) Chapter 43 of this title applies to an uninspected passenger vessel.
(b) Within twenty-four months of the date of
enactment of this subsection, the Secretary

46:526o

AMENDMENTS
1988—Pub. L. 100–540 substituted ‘‘not more than
$5,000’’ for ‘‘$100’’.

CHAPTER 43—RECREATIONAL VESSELS
Sec.

4301.
4302.
4303.
4304.
4305.
4306.
4307.
4308.
4309.
4310.
4311.

Application.
Regulations.
Inspection and testing.
Importation of nonconforming vessels and
equipment.
Exemptions.
Federal preemption.
Prohibited acts.
Termination of unsafe operation.
Investigation and reporting.
Repair and replacement of defects.
Penalties and injunctions.
HISTORICAL AND REVISION NOTES

Chapter 43 contains the laws applicable to recreational vessels, which originated primarily with the
enactment of the Federal Boat Safety Act of 1971 (Public Law 92–75, 85 Stat. 213). That Act embraced a num-

Page 79

§ 4302

TITLE 46—SHIPPING

ber of activities, but the portion restated in this chapter deals with the establishment of national construction and performance standards for recreational vessels
and their associated equipment, the necessary flexible
regulatory authority for inspection and testing, Federal preemption, certain necessary prohibited acts, enforcement authority, investigation and reporting requirements, procedures for repair and defect notification, and attendant penalties and injunctive relief.
These laws are a direct response to the dramatic increase in the number of recreational boats and the Congressional recognition of the maritime safety problems
that recreational boating has imposed upon our more
than 25 million miles of waterways.

§ 4301. Application
(a) This chapter applies to a recreational vessel and associated equipment carried in the vessel on waters subject to the jurisdiction of the
United States (including the territorial sea of
the United States as described in Presidential
Proclamation No. 5928 of December 27, 1988) and,
for a vessel owned in the United States, on the
high seas.
(b) Except when expressly otherwise provided,
this chapter does not apply to a foreign vessel
temporarily operating on waters subject to the
jurisdiction of the United States.
(c) Until there is a final judicial decision that
they are navigable waters of the United States,
the following waters lying entirely in New
Hampshire are declared not to be waters subject
to the jurisdiction of the United States within
the meaning of this section: Lake Winnisquam,
Lake Winnipesaukee, parts of the Merrimack
River, and their tributary and connecting waters.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 529; Pub. L.
105–383, title III, § 301(b)(4), Nov. 13, 1998, 112
Stat. 3417.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

4301 ..............................................

46:1453

Section 4301 provides that this chapter is applicable
to a recreational vessel that operates on waters subject
to the jurisdiction of the United States or that is
owned in the United States and while operating on the
high seas.
It also provides that a foreign recreational vessel
that temporarily uses our waters is not subject to the
requirements of this chapter. However, if the vessel remains permanently in the United States, it would be
subject to the provisions of this chapter.
Section 4301(c) recognizes the ongoing controversy
over the navigability of certain waters of New Hampshire. While a recreational vessel operating on these
waters need not meet the requirements of this chapter,
it would be prohibited from operating on any other waters subject to the jurisdiction of the United States if
it does not comply with these requirements.
REFERENCES IN TEXT
Presidential Proclamation No. 5928, referred to in
subsec. (a), is set out under section 1331 of Title 43,
Public Lands.
AMENDMENTS
1998—Subsec. (a). Pub. L. 105–383 inserted ‘‘(including
the territorial sea of the United States as described in
Presidential Proclamation No. 5928 of December 27,
1988)’’ after ‘‘of the United States’’.

EFFECTIVE DATE
Chapter effective Apr. 15, 1984, see section 2(g)(1) of
Pub. L. 98–89, set out as a note under section 3101 of
this title.

§ 4302. Regulations
(a) The Secretary may prescribe regulations—
(1) establishing minimum safety standards
for recreational vessels and associated equipment, and establishing procedures and tests
required to measure conformance with those
standards, with each standard—
(A) meeting the need for recreational vessel safety; and
(B) being stated, insofar as practicable, in
terms of performance;
(2) requiring the installation, carrying, or
use of associated equipment (including fuel
systems, ventilation systems, electrical systems, sound-producing devices, firefighting
equipment, lifesaving devices, signaling devices, ground tackle, life- and grab-rails, and
navigational equipment) on recreational vessels and classes of recreational vessels subject
to this chapter, and prohibiting the installation, carrying, or use of associated equipment
that does not conform with safety standards
established under this section; and
(3) requiring or permitting the display of
seals, labels, plates, insignia, or other devices
for certifying or evidencing compliance with
safety regulations and standards of the United
States Government for recreational vessels
and associated equipment.
(b) Each regulation prescribed under this section shall specify an effective date that is not
earlier than 180 days from the date the regulation was published, unless the Secretary finds
that there exists a recreational vessel safety
hazard so critical as to require an earlier effective date. However, this period may not be more
than 24 months for cases involving, in the discretion of the Secretary, major product design,
retooling, or major changes in the manufacturing process.
(c) In prescribing regulations under this section, the Secretary shall, among other things—
(1) consider the need for and the extent to
which the regulations will contribute to recreational vessel safety;
(2) consider relevant available recreational
vessel safety standards, statistics, and data,
including public and private research, development, testing, and evaluation;
(3) not compel substantial alteration of a
recreational vessel or item of associated
equipment that is in existence, or the construction or manufacture of which is begun before the effective date of the regulation, but
subject to that limitation may require compliance or performance, to avoid a substantial
risk of personal injury to the public, that the
Secretary considers appropriate in relation to
the degree of hazard that the compliance will
correct; and
(4) consult with the National Boating Safety
Advisory Council established under section
13110 of this title about the considerations referred to in clauses (1)–(3) of this subsection.
(d) Section 8903 of this title does not apply to
a vessel being operated for bona fide dealer dem-

§ 4303

TITLE 46—SHIPPING

onstrations provided without fee to business invitees. However, if on the basis of substantial
evidence, the Secretary decides under this section that requiring vessels so operated to be
under the control of licensed individuals is necessary for boating safety, then the Secretary
may prescribe regulations requiring the licensing of individuals controlling these vessels in
the same manner as provided in chapter 89 of
this title for individuals in control of vessels
carrying passengers for hire.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 530.)
HISTORICAL AND REVISION NOTES
Revised section
4302 ..............................................

Source section (U.S. Code)
46:1454
46:1455
46:1456
46:1464(g)
46:1488

Section 4302 authorizes the Secretary to prescribe
regulations to carry out the provisions of this chapter.
In lieu of establishing specific statutory safety requirements, subsection (a) provides flexible regulatory authority to establish uniform standards for the design,
construction, materials, and performance of the boats
themselves and all associated equipment. It also provides for the display of seals and other devices for certifying or evidencing compliance with applicable safety
regulations or standards.
Section 4302(b) requires a regulation prescribed under
this section to have an effective date that is not earlier
than 180 days from publication. However, in those instances where a safety hazard may be critical an earlier
effective date is authorized.
Section 4302(c) requires the Secretary to consider certain objectives in developing regulatory controls and
regulations or standards and that there must be an effective consultation process.
Section 4302(d) exempts dealer demonstration boats
from the requirement of having to be named by a licensed individual when demonstrating boats to prospective purchasers or other business invitees when no
fees are charged. The Secretary may require that boats
so used be under control of a licensed individual.
AVAILABILITY AND USE OF EPIRBS FOR RECREATIONAL
VESSELS
Pub. L. 105–383, title III, § 309, Nov. 13, 1998, 112 Stat.
3422, provided that: ‘‘The Secretary of Transportation,
through the Coast Guard and in consultation with the
National Transportation Safety Board and recreational
boating organizations, shall, within 24 months of the
date of the enactment of this Act [Nov. 13, 1998], assess
and report to Congress on the use of emergency position indicating beacons (EPIRBs) and similar devices
by operators of recreational vessels on the Intracoastal
Waterway and operators of recreational vessels beyond
the Boundary Line. The assessment shall at a minimum—
‘‘(1) evaluate the current availability and use of
EPIRBs and similar devices by the operators of recreational vessels and the actual and potential contribution of such devices to recreational boating safety; and
‘‘(2) provide recommendations on policies and programs to encourage the availability and use of
EPIRBS [sic] and similar devices by the operators of
recreational vessels.’’

§ 4303. Inspection and testing
(a) Subject to regulations, supervision, and reviews that the Secretary may prescribe, the Secretary may delegate to a person, private or public agency, or organization, or to an officer or

Page 80

employee under the supervision of that person
or agency, any work, business, or function related to the testing, inspection, and examination
necessary for compliance enforcement and for
the development of data to enable the Secretary
to prescribe regulations under section 4302 of
this title.
(b) The Secretary may—
(1) conduct research, testing, and development necessary to carry out this chapter, including the procurement by negotiation or
otherwise of experimental and other recreational vessels or associated equipment for
research and testing purposes; and
(2) subsequently sell those vessels.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 531.)
HISTORICAL AND REVISION NOTES
Revised section
4303 ..............................................

Source section (U.S. Code)
46:1457

Section 4303 authorizes the Secretary to delegate to
certain persons or agencies or organizations any work,
business, or function related to the testing, inspection,
and examination necessary for compliance enforcement. The Secretary may also conduct research, testing, and development necessary to carry out this chapter, including procurement of vessels and equipment
and their subsequent sale. The Committee wishes to
make clear that the Secretary may sell anything that
was purchased to test.

§ 4304. Importation of nonconforming vessels and
equipment
The Secretary and the Secretary of the Treasury may authorize by joint regulations the importation of any nonconforming recreational
vessel or associated equipment on conditions,
including providing a bond, that will ensure that
the recreational vessel or associated equipment
will be brought into conformity with applicable
safety regulations and standards of the Government before the vessel or equipment is operated
on waters subject to the jurisdiction of the
United States.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 531.)
HISTORICAL AND REVISION NOTES
Revised section
4304 ..............................................

Source section (U.S. Code)
46:1460

Section 4304 requires the regulation and control of
the importation of nonconforming recreational vessels
and associated equipment. This is to assure United
States manufacturers that foreign imports comply with
those regulations and standards in effect for United
States products so that all manufacturers will be on
this same competitive footing. This is being done in
lieu of providing a specific prohibition against the importation of these vessels and equipment that might be
considered an imposition of a non-tariff barrier to
trade.

§ 4305. Exemptions
If the Secretary considers that recreational
vessel safety will not be adversely affected, the
Secretary may issue an exemption from this
chapter or a regulation prescribed under this
chapter.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 531.)

Page 81

§ 4309

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised section
4305 ..............................................

Source section (U.S. Code)
46:1458

Section 4305 permits the Secretary to grant appropriate exemptions from the requirements of this chapter when recreational vessel safety will not be adversely affected.

§ 4306. Federal preemption
Unless permitted by the Secretary under section 4305 of this title, a State or political subdivision of a State may not establish, continue
in effect, or enforce a law or regulation establishing a recreational vessel or associated equipment performance or other safety standard or
imposing a requirement for associated equipment (except insofar as the State or political
subdivision may, in the absence of the Secretary’s disapproval, regulate the carrying or
use of marine safety articles to meet uniquely
hazardous conditions or circumstances within
the State) that is not identical to a regulation
prescribed under section 4302 of this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 531.)
HISTORICAL AND REVISION NOTES
Revised section
4306 ..............................................

Source section (U.S. Code)
46:1459
46:1460

Section 4306 establishes the Federal preemption of
recreational boating standards and requirements. A
State or a political subdivision may not establish, continue, or enforce a law or regulation establishing a performance or other safety standard that is not identical
to a Federal standard. The Secretary may grant an exemption to a State when the State requirement is one
that is needed to meet uniquely hazardous conditions
or circumstances within a State. This is to provide uniform standards without the imposition of excessive special requirements by individual States.

§ 4307. Prohibited acts
(a) A person may not—
(1) manufacture, construct, assemble, sell or
offer for sale, introduce or deliver for introduction into interstate commerce, or import
into the United States, a recreational vessel,
associated equipment, or component of the
vessel or equipment unless—
(A)(i) it conforms with this chapter or a
regulation prescribed under this chapter;
and
(ii) it does not contain a defect which has
been identified, in any communication to
such person by the Secretary or the manufacturer of that vessel, equipment or component, as creating a substantial risk of personal injury to the public; or
(B) it is intended only for export and is so
labeled, tagged, or marked on the recreational vessel or equipment, including any
markings on the outside of the container in
which it is to be exported;
(2) affix, attach, or display a seal, document,
label, plate, insignia, or other device indicating or suggesting compliance with standards
of the United States Government on, in, or in
connection with, a recreational vessel or item

of associated equipment that is false or misleading; or
(3) fail to provide a notification as required
by this chapter or fail to exercise reasonable
diligence in carrying out the notification and
reporting requirements of this chapter.
(b) A person may not operate a vessel in violation of this chapter or a regulation prescribed
under this chapter.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 531; Pub. L.
98–557, § 8(a), Oct. 30, 1984, 98 Stat. 2862.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

4307(a) .........................................
4307(b) .........................................

46:1461(a)
46:1461(c)

Section 4307 prohibits certain acts in the manufacture and operation of recreational vessels.
AMENDMENTS
1984—Subsec. (a)(1)(A). Pub. L. 98–557 designated existing provisions as cl. (i), substituted ‘‘and’’ for ‘‘or’’,
and added cl. (ii).

§ 4308. Termination of unsafe operation
If an official charged with the enforcement of
this chapter observes a recreational vessel being
operated without sufficient lifesaving or firefighting devices or in an overloaded or other unsafe condition (as defined in regulations prescribed under this chapter) and, in the judgment
of the official, the operation creates an especially hazardous condition, the official may direct the individual in charge of the recreational
vessel to take immediate and reasonable steps
necessary for the safety of individuals on board
the vessel, including directing the individual in
charge to return to a mooring and to remain
there until the situation creating the hazard is
corrected or ended.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 532; Pub. L.
99–307, § 1(9), May 19, 1986, 100 Stat. 445.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

4308 ..............................................

46:1462

Section 4308 authorizes an appropriate official to terminate the unsafe operation of recreational vessels. If
the official observes the vessel being operated without
sufficient lifesaving or firefighting devices or in an
overloaded or other unsafe condition (as defined in regulations) and believes the operation creates an especially hazardous condition, the operator may be directed to take immediate and reasonable steps necessary for safety, including returning to a mooring and
remaining there until the hazard is corrected or ended.
This does not prevent the assessment of any applicable
civil penalties nor the pursuing of appropriate criminal
action.
AMENDMENTS
1986—Pub. L. 99–307 substituted
charge’’ for ‘‘operator’’ in two places.

‘‘individual

in

§ 4309. Investigation and reporting
(a) A recreational vessel manufacturer to
whom this chapter applies shall establish and
maintain records and reports and provide information the Secretary may require to enable the

§ 4310

TITLE 46—SHIPPING

Secretary to decide whether the manufacturer
has acted or is acting in compliance with this
chapter and regulations prescribed under this
chapter. On request of an officer, employee, or
agent authorized by the Secretary, a recreational vessel manufacturer shall permit the
officer, employee, or agent to inspect, at reasonable times, factories or other facilities, and
records related to deciding whether the manufacturer has acted or is acting in compliance
with this chapter and regulations prescribed
under this chapter.
(b) Information reported to or otherwise obtained by the Secretary or the representative of
the Secretary under this section containing or
related to a trade secret or other matter referred to in section 1905 of title 18, or authorized
to be exempt from public disclosure by section
552(b) of title 5, is confidential under section
1905. However, on approval of the Secretary, the
information may be disclosed to other officers,
employees, or agents concerned with carrying
out this chapter or when it is relevant in a proceeding under this chapter.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 532.)
HISTORICAL AND REVISION NOTES
Revised section
4309 ..............................................

Source section (U.S. Code)
46:1463

Section 4309 requires the establishment and maintenance of certain records by manufacturers, and the inspection and access to these records by the Secretary,
at reasonable times, so as to assure Federal enforcement officials that the manufacturer has acted or is in
compliance with applicable laws and regulations. It
also provides protection for matters related to trade secrets and exemptions from public disclosure.

§ 4310. Repair and replacement of defects
(a) In this section, ‘‘associated equipment’’ includes only items or classes of associated equipment that the Secretary shall prescribe by regulation after deciding that the application of the
requirements of this section to those items or
classes of associated equipment is reasonable
and in furtherance of this chapter.
(b) If a recreational vessel or associated equipment has left the place of manufacture and the
recreational vessel manufacturer discovers or
acquires information that the manufacturer decides, in the exercise of reasonable and prudent
judgment, indicates that a recreational vessel or
associated equipment subject to an applicable
regulation prescribed under section 4302 of this
title either fails to comply with the regulation,
or contains a defect that creates a substantial
risk of personal injury to the public, the manufacturer shall provide notification of the defect
or failure of compliance as provided by subsections (c) and (d) of this section within a reasonable time after the manufacturer has discovered the defect.
(c)(1) The notification required by subsection
(b) of this section shall be given to the following
persons in the following manner:
(A) by first class mail or by certified mail to
the first purchaser for other than resale, except that the requirement for notification of
the first purchaser shall be satisfied if the recreational vessel manufacturer exercises rea-

Page 82

sonable diligence in establishing and maintaining a list of those purchasers and their
current addresses, and sends the required notice to each person on that list at the address
appearing on the list.
(B) by first class mail or by certified mail to
subsequent purchasers if known to the manufacturer.
(C) by first class mail or by certified mail or
other more expeditious means to the dealers
and distributors of the recreational vessels or
associated equipment.
(2) The notification required by subsection (b)
of this section is required to be given only for a
defect or failure of compliance discovered by the
recreational vessel manufacturer within a reasonable time after the manufacturer has discovered the defect or failure, except that the manufacturer’s duty of notification under paragraph
(1)(A) and (B) of this subsection applies only to
a defect or failure of compliance discovered by
the manufacturer within one of the following
appropriate periods:
(A) if a recreational vessel or associated
equipment required by regulation to have a
date of certification affixed, 10 years from the
date of certification.
(B) if a recreational vessel or associated
equipment not required by regulation to have
a date of certification affixed, 10 years from
the date of manufacture.
(d) The notification required by subsection (b)
of this section shall contain a clear description
of the defect or failure to comply, an evaluation
of the hazard reasonably related to the defect or
failure, a statement of the measures to correct
the defect or failure, and an undertaking by the
recreational vessel manufacturer to take those
measures only at the manufacturer’s cost and
expense.
(e) Each recreational vessel manufacturer
shall provide the Secretary with a copy of all
notices, bulletins, and other communications to
dealers and distributors of that manufacturer,
and to purchasers of recreational vessels or associated equipment of that manufacturer, about
a defect related to safety in the recreational
vessels or associated equipment, and any failure
to comply with the regulation or order applicable to the recreational vessels or associated
equipment. The Secretary may publish or otherwise disclose to the public information in the
notices or other information the Secretary has
that the Secretary considers will assist in carrying out this chapter. However, the Secretary
may disclose any information that contains or
relates to a trade secret only if the Secretary
decides that the information is necessary to
carry out this chapter.
(f) If, through testing, inspection, investigation, or examination of reports, the Secretary
decides that a recreational vessel or associated
equipment to which this chapter applies contains a defect related to safety or fails to comply with an applicable regulation prescribed
under this chapter and notification under this
chapter is appropriate, the Secretary shall notify the recreational vessel manufacturer of the
defect or failure. The notice shall contain the
findings of the Secretary and shall include a

Page 83

TITLE 46—SHIPPING

synopsis of the information on which they are
based. The manufacturer may then provide the
notification required by this chapter to the persons designated in this chapter or dispute the
Secretary’s decision. If disputed, the Secretary
shall provide the manufacturer with an opportunity to present views and establish that there
is no such defect or failure. When the Secretary
considers it to be in the public interest, the Secretary may publish notice of the proceeding in
the Federal Register and provide interested persons, including the National Boating Safety Advisory Council, with an opportunity to comment. If, after presentation by the manufacturer, the Secretary decides that the recreational vessel or associated equipment contains a defect related to safety or fails to comply with an applicable regulation, the Secretary
may direct the manufacturer to provide the notifications specified in this chapter.
(g) The Secretary may prescribe regulations to
carry out this section, including the establishment of procedures that require dealers and distributors to assist manufacturers in obtaining
information required by this section. A regulation prescribed under this subsection does not
relieve a manufacturer of any obligation imposed by this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 532; Pub. L.
107–295, title IV, § 433, Nov. 25, 2002, 116 Stat.
2129.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

4310 ..............................................

46:1464

Section 4310 imposes certain requirements on a recreational vessel and associated equipment manufacturer to provide notification of a defect or the failure
of compliance after a manufacturer discovers the defect
or failure. This section spells out the procedure for notification and who shall be notified. It assures the public of notification while protecting the manufacturer
from the potential of damaging and inaccurate disclosures.
AMENDMENTS
2002—Subsec. (c)(1)(A) to (C). Pub. L. 107–295, § 433(2),
inserted ‘‘by first class mail or’’ before ‘‘by certified
mail’’.
Subsec. (c)(2)(A), (B). Pub. L. 107–295, § 433(1), substituted ‘‘10’’ for ‘‘5’’.

§ 4311. Penalties and injunctions
(a) A person willfully operating a recreational
vessel in violation of this chapter or a regulation prescribed under this chapter shall be fined
not more than $5,000, imprisoned for not more
than one year, or both.
(b)(1) A person violating section 4307(a) of this
title is liable to the United States Government
for a civil penalty of not more than $5,000, except that the maximum civil penalty may be not
more than $250,000 for a related series of violations.
(2) If the Secretary decides under section
4310(f) that a recreational vessel or associated
equipment contains a defect related to safety or
fails to comply with an applicable regulation
and directs the manufacturer to provide the notifications specified in this chapter, any person,

§ 4311

including a director, officer or executive employee of a corporation, who knowingly and
willfully fails to comply with that order, may be
fined not more than $10,000, imprisoned for not
more than one year, or both.
(3) When a corporation violates section 4307(a),
or fails to comply with the Secretary’s decision
under section 4310(f), any director, officer, or executive employee of the corporation who knowingly and willfully ordered, or knowingly and
willfully authorized, a violation is individually
liable to the Government for a penalty under
paragraphs (1) or (2) in addition to the corporation. However, the director, officer, or executive
employee is not liable individually under this
subsection if the director, officer, or executive
employee can demonstrate by a preponderance
of the evidence that—
(A) the order or authorization was issued on
the basis of a decision, in exercising reasonable and prudent judgment, that the defect or
the nonconformity with standards and regulations constituting the violation would not
cause or constitute a substantial risk of personal injury to the public; and
(B) at the time of the order or authorization,
the director, officer, or executive employee advised the Secretary in writing of acting under
this subparagraph and subparagraph (A).
(c) A person violating any other provision of
this chapter or other regulation prescribed
under this chapter is liable to the Government
for a civil penalty of not more than $1,000. If the
violation involves the operation of a vessel, the
vessel also is liable in rem for the penalty.
(d) When a civil penalty of not more than $200
has been assessed under this chapter, the Secretary may refer the matter of collection of the
penalty directly to the United States magistrate
judge of the jurisdiction in which the person liable may be found for collection procedures under
supervision of the district court and under an
order issued by the court delegating this authority under section 636(b) of title 28.
(e) The district courts of the United States
have jurisdiction to restrain a violation of this
chapter, or to restrain the sale, offer for sale, introduction or delivery for introduction into
interstate commerce, or importation into the
United States, of a recreational vessel or associated equipment that the court decides does not
conform to safety standards of the Government.
A civil action under this subsection shall be
brought by filing a petition by the Attorney
General for the Government. When practicable,
the Secretary shall give notice to a person
against whom an action for injunctive relief is
contemplated and provide the person with an opportunity to present views and, except for a
knowing and willful violation, shall provide the
person with a reasonable opportunity to achieve
compliance. The failure to give notice and provide the opportunity does not preclude the
granting of appropriate relief by the district
court.
(f) A person is not subject to a penalty under
this chapter if the person—
(1) establishes that the person did not have
reason to know, in exercising reasonable care,
that a recreational vessel or associated equipment does not conform with the applicable

§ 4501

TITLE 46—SHIPPING

safety standards of the Government or that
the person was not advised by the Secretary or
the manufacturer of that vessel, equipment or
component that the vessel, equipment or component contains a defect which creates a substantial risk of personal injury to the public;
or
(2) holds a certificate issued by the manufacturer of that recreational vessel or associated
equipment to the effect that the recreational
vessel or associated equipment conforms to all
applicable recreational vessel safety standards
of the Government, unless the person knows or
reasonably should have known that the recreational vessel or associated equipment does
not so conform.
(g) Compliance with this chapter or standards,
regulations, or orders prescribed under this
chapter does not relieve a person from liability
at common law or under State law.

Page 84

ized, a violation is individually liable to the Government for the penalty, in addition to the corporation.
However, the director, officer, or executive employee is
not liable individually under this subsection if the director, officer, or executive employee can demonstrate
by a preponderance of the evidence that—
‘‘(1) the order or authorization was issued on the
basis of a decision, in exercising reasonable and prudent judgment, that the defect or the nonconformity
with standards and regulations constituting the violation would not cause or constitute a substantial
risk of personal injury to the public; and
‘‘(2) at the time of the order or authorization, the
director, officer, or executive employee advised the
Secretary in writing of acting under this clause and
clause (1) of this subsection.’’
1984—Subsec. (b)(1). Pub. L. 98–557, § 8(b), inserted ‘‘defect or the’’ before ‘‘nonconformity’’.
Subsec. (f)(1). Pub. L. 98–557, § 8(c), inserted provisions
relating to advice by the Secretary or manufacturer of
the vessel, equipment or component respecting defects
creating substantial risk of personal injury to the public.
CHANGE OF NAME

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 534; Pub. L.
98–557, § 8(b), (c), Oct. 30, 1984, 98 Stat. 2862; Pub.
L. 101–650, title III, § 321, Dec. 1, 1990, 104 Stat.
5117; Pub. L. 108–293, title IV, § 406, Aug. 9, 2004,
118 Stat. 1043; Pub. L. 109–241, title IX, § 901(e),
July 11, 2006, 120 Stat. 564.)

‘‘United States magistrate judge’’ substituted for
‘‘United States magistrate’’ in subsec. (d) pursuant to
section 321 of Pub. L. 101–650, set out as a note under
section 631 of Title 28, Judiciary and Judicial Procedure.

HISTORICAL AND REVISION NOTES

CHAPTER 45—UNINSPECTED COMMERCIAL
FISHING INDUSTRY VESSELS

Revised section

Source section (U.S. Code)

4311(a) .........................................
4311(b) .........................................
4311(c) .........................................
4311(d) .........................................
4311(e) .........................................
4311(f) ..........................................
4311(g) .........................................

46:1483
46:1484(a)
46:1484(b)
46:1484(d)
46:1485
46:1461(b)
46:1489

Section 4311 provides penalties for violating any of
the provisions of this chapter or a regulation prescribed
under this chapter. For a willful violation the penalty
is a criminal fine; all other penalties are civil in nature.
A person violating any of the prohibited acts specified in section 4307(a)(1) is subject to a maximum civil
penalty that can go as high as a $100,000 for a related
series of violations. However, the section provides for
no liability for good faith reliance on certifications of
compliance by others within the chain of responsibility
and for defects that are not within an individual’s responsibility or control.
This section also contains an alternate procedure for
the collection of a civil penalty of not more than $200
through a U.S. magistrate in lieu of the civil penalty
procedures of the Coast Guard. It also directs the district courts of the United States to restrain the sale,
offer for sale, introduction or delivery for introduction
into interstate commerce, or importation of a recreational vessel or associated equipment that does not
conform to applicable safety standards. Finally, compliance with this chapter or standards, regulations, or
orders does not relieve a person from liability at common law or under State law.
AMENDMENTS
2006—Subsec. (b)(1). Pub. L. 109–241 inserted a space
after ‘‘4307(a)’’.
2004—Subsec. (b). Pub. L. 108–293 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ‘‘A person violating section 4307(a)(1) of this title
is liable to the United States Government for a civil
penalty of not more than $2,000, except that the maximum civil penalty may be not more than $100,000 for a
related series of violations. When a corporation violates section 4307(a)(1), any director, officer, or executive employee of the corporation who knowingly and
willfully ordered, or knowingly and willfully author-

Sec.

4501.
4502.
4503.
4504.
4505.
4506.
4507.
4508.

Application.
Safety standards.
Fishing, fish tender, and fish processing vessel certification.
Prohibited acts.
Termination of unsafe operations.
Exemptions.
Penalties.
Commercial Fishing Safety Advisory Committee.
AMENDMENTS

2010—Pub. L. 111–281, title VI, § 604(c)(4), (e)(2), Oct. 15,
2010, 124 Stat. 2965, 2966, substituted ‘‘Fishing, fish tender, and fish processing vessel certification’’ for ‘‘Fish
processing vessel certification’’ in item 4503 and ‘‘Commercial Fishing Safety Advisory Committee’’ for
‘‘Commercial Fishing Industry Vessel Safety Advisory
Committee’’ in item 4508.
2002—Pub. L. 107–295, title III, § 331(b), Nov. 25, 2002,
116 Stat. 2105, inserted ‘‘Safety’’ before ‘‘Advisory Committee’’ in item 4508.
1988—Pub. L. 100–424, § 2(a), Sept. 9, 1988, 102 Stat. 1585,
in chapter heading substituted ‘‘UNINSPECTED COMMERCIAL FISHING INDUSTRY VESSELS’’ for ‘‘FISH
PROCESSING VESSELS’’, substituted ‘‘Safety standards’’ for ‘‘Regulations’’ in item 4502, ‘‘Fish processing
vessel certification’’ for ‘‘Equivalency’’ in item 4503,
‘‘Prohibited acts’’ for ‘‘Penalties’’ in item 4504, and
added items 4505 to 4508.

§ 4501. Application
(a) This chapter applies to an uninspected vessel which is a fishing vessel, fish processing vessel, or fish tender vessel.
(b) This chapter does not apply to the carriage
of bulk dangerous cargoes regulated under chapter 37 of this title.
(Added Pub. L. 98–364, title IV, § 402(7)(C), July
17, 1984, 98 Stat. 446; amended Pub. L. 100–424,
§ 2(a), Sept. 9, 1988, 102 Stat. 1585.)
AMENDMENTS
1988—Pub. L. 100–424 amended section generally, in
subsec. (a) substituting provisions which related to un-

Page 85

TITLE 46—SHIPPING

inspected fish processing vessel entered into service
after Dec. 31, 1987, having more than 16 individuals on
board primarily employed in preparation of fish on navigable waters of United States or owned in United
States and operating on high seas, for provisions which
related to uninspected fishing vessel, fish processing
vessel, or fish tender vessel, and in subsec. (b) substituting ‘‘carriage of bulk’’ for ‘‘carriage of liquid
bulk’’.
FOREIGN BUILT VESSELS, EQUIVALENT COMPLIANCE
UNTIL JULY 28, 1990
Pub. L. 100–424, § 7, Sept. 9, 1988, 102 Stat. 1592, provided that: ‘‘Until July 28, 1990, a foreign built fish
processing vessel subject to chapter 45 of title 46,
United States Code, is deemed to comply with the requirements of that chapter if—
‘‘(1) it has an unexpired certificate of inspection issued by a foreign country that is a party to an International Convention for Safety of Life at Sea to
which the United States Government is a party; and
‘‘(2) it is in compliance with the safety requirements of that foreign country that apply to that vessel.’’

§ 4502. Safety standards
(a) The Secretary shall prescribe regulations
which require that each vessel to which this
chapter applies shall be equipped with—
(1) readily accessible fire extinguishers capable of promptly and effectively extinguishing a
flammable or combustible liquid fuel fire;
(2) at least one readily accessible life preserver or other lifesaving device for each individual on board;
(3) an efficient flame arrestor, backfire trap,
or other similar device on the carburetors of
each inboard engine which uses gasoline as
fuel;
(4) the means to properly and efficiently
ventilate enclosed spaces, including engine
and fuel tank compartments, so as to remove
explosive or flammable gases;
(5) visual distress signals;
(6) other equipment required to minimize
the risk of injury to the crew during vessel operations, if the Secretary determines that a
risk of serious injury exists that can be eliminated or mitigated by that equipment; and
(7) a placard as required by regulations prescribed under section 10603(b) of this title.
(b)(1) In addition to the requirements of subsection (a) of this section, the Secretary shall
prescribe regulations requiring the installation,
maintenance, and use of the equipment in paragraph (2) of this subsection for vessels to which
this chapter applies that—
(A) operate beyond 3 nautical miles from the
baseline from which the territorial sea of the
United States is measured or beyond 3 nautical miles from the coastline of the Great
Lakes;
(B) operate with more than 16 individuals on
board; or
(C) in the case of a fish tender vessel, engage
in the Aleutian trade.
(2) The equipment to be required is as follows:
(A) alerting and locating equipment, including emergency position indicating radio beacons;
(B) a survival craft that ensures that no part
of an individual is immersed in water suffi-

§ 4502

cient to accommodate all individuals on
board;
(C) at least one readily accessible immersion
suit for each individual on board that vessel
when operating on the waters described in section 3102 of this title;
(D) marine radio communications equipment
sufficient to effectively communicate with
land-based search and rescue facilities;
(E) navigation equipment, including compasses, nautical charts, and publications;
(F) first aid equipment and medical supplies
sufficient for the size and area of operation of
the vessel; and
(G) ground tackle sufficient for the vessel.
(c)(1) In addition to the requirements described in subsections (a) and (b) of this section,
the Secretary may prescribe regulations establishing the standards in paragraph (2) of this
subsection for vessels to which this chapter applies that—
(A)(i) were built after December 31, 1988, or
undergo a major conversion completed after
that date; and
(ii) operate with more than 16 individuals on
board; or
(B) in the case of a fish tender vessel, engage
in the Aleutian trade.
(2) The standards shall be minimum safety
standards, including standards relating to—
(A) navigation equipment, including radars
and fathometers;
(B) lifesaving equipment, immersion suits,
signaling devices, bilge pumps, bilge alarms,
life rails, and grab rails;
(C) fire protection and firefighting equipment, including fire alarms and portable and
semiportable fire extinguishing equipment;
(D) use and installation of insulation material;
(E) storage methods for flammable or combustible material; and
(F) fuel, ventilation, and electrical systems.
(d)(1) The Secretary shall prescribe regulations for the operating stability of a vessel to
which this chapter applies—
(A) that was built after December 31, 1989; or
(B) the physical characteristics of which are
substantially altered after December 31, 1989,
in a manner that affects the vessel’s operating
stability.
(2) The Secretary may accept, as evidence of
compliance with this subsection, a certification
of compliance issued by the person providing insurance for the vessel or by another qualified
person approved by the Secretary.
(e) In prescribing regulations under this chapter, the Secretary—
(1) shall consider the specialized nature and
economics of the operations and the character,
design, and construction of the vessel; and
(2) may not require the alteration of a vessel
or associated equipment that was constructed
or manufactured before the effective date of
the regulation.
(f) To ensure compliance with the requirements of this chapter, the Secretary—
(1) shall require the individual in charge of a
vessel described in subsection (b) to keep a

§ 4502

TITLE 46—SHIPPING

record of equipment maintenance, and required instruction and drills; and
(2) shall examine at dockside a vessel described in subsection (b) at least once every 2
years, and shall issue a certificate of compliance to a vessel meeting the requirements of
this chapter.
(g)(1) The individual in charge of a vessel described in subsection (b) must pass a training
program approved by the Secretary that meets
the requirements in paragraph (2) of this subsection and hold a valid certificate issued under
that program.
(2) The training program shall—
(A) be based on professional knowledge and
skill obtained through sea service and handson training, including training in seamanship,
stability, collision prevention, navigation, fire
fighting and prevention, damage control, personal survival, emergency medical care, emergency drills, and weather;
(B) require an individual to demonstrate
ability to communicate in an emergency situation and understand information found in
navigation publications;
(C) recognize and give credit for recent past
experience in fishing vessel operation; and
(D) provide for issuance of a certificate to an
individual that has successfully completed the
program.
(3) The Secretary shall prescribe regulations
implementing this subsection. The regulations
shall require that individuals who are issued a
certificate under paragraph (2)(D) must complete refresher training at least once every 5
years as a condition of maintaining the validity
of the certificate.
(4) The Secretary shall establish a publicly accessible electronic database listing the names of
individuals who have participated in and received a certificate confirming successful completion of a training program approved by the
Secretary under this section.
(h) A vessel to which this chapter applies shall
be constructed in a manner that provides a level
of safety equivalent to the minimum safety
standards the Secretary may establish for recreational vessels under section 4302, if—
(1) subsection (b) of this section applies to
the vessel;
(2) the vessel is less than 50 feet overall in
length; and
(3) the vessel is built after January 1, 2010.
(i)(1) The Secretary shall establish a Fishing
Safety Training Grants Program to provide
funding to municipalities, port authorities,
other appropriate public entities, not-for-profit
organizations, and other qualified persons that
provide commercial fishing safety training—
(A) to conduct fishing vessel safety training
for vessel operators and crewmembers that—
(i) in the case of vessel operators, meets
the requirements of subsection (g); and
(ii) in the case of crewmembers, meets the
requirements of subsection (g)(2)(A), such requirements of subsection (g)(2)(B) as are appropriate for crewmembers, and the requirements of subsections (g)(2)(D), (g)(3), and
(g)(4); and

Page 86

(B) for purchase of safety equipment and
training aids for use in those fishing vessel
safety training programs.
(2) The Secretary shall award grants under
this subsection on a competitive basis.
(3) The Federal share of the cost of any activity carried out with a grant under this subsection shall not exceed 75 percent.
(4) There is authorized to be appropriated
$3,000,000 for each of fiscal years 2010 through
2014 for grants under this subsection.
(j)(1) The Secretary shall establish a Fishing
Safety Research Grant Program to provide funding to individuals in academia, members of nonprofit organizations and businesses involved in
fishing and maritime matters, and other persons
with expertise in fishing safety, to conduct research on methods of improving the safety of
the commercial fishing industry, including vessel design, emergency and survival equipment,
enhancement of vessel monitoring systems,
communications devices, de-icing technology,
and severe weather detection.
(2) The Secretary shall award grants under
this subsection on a competitive basis.
(3) The Federal share of the cost of any activity carried out with a grant under this subsection shall not exceed 75 percent.
(4) There is authorized to be appropriated
$3,000,000 for each fiscal years 2010 through 2014
for activities under this subsection.
(Added Pub. L. 98–364, title IV, § 402(7)(C), July
17, 1984, 98 Stat. 447; amended Pub. L. 98–557,
§ 33(a), Oct. 30, 1984, 98 Stat. 2876; Pub. L. 100–424,
§ 2(a), Sept. 9, 1988, 102 Stat. 1585; Pub. L. 101–595,
title VI, § 602(c), Nov. 16, 1990, 104 Stat. 2990; Pub.
L. 104–324, title III, § 307, Oct. 19, 1996, 110 Stat.
3918; Pub. L. 105–383, title III, § 301(b)(5), Nov. 13,
1998, 112 Stat. 3417; Pub. L. 111–281, title VI,
§ 604(a), Oct. 15, 2010, 124 Stat. 2962.)
AMENDMENTS
2010—Subsec. (a)(6). Pub. L. 111–281, § 604(a)(1)(A),
added par. (6) and struck out former par. (6) which read
as follows: ‘‘a buoyant apparatus, if the vessel is of a
type required by regulations prescribed by the Secretary to be equipped with that apparatus;’’.
Subsec. (a)(7), (8). Pub. L. 111–281, § 604(a)(1), redesignated par. (8) as (7) and struck out former par. (7) which
read as follows: ‘‘alerting and locating equipment, including emergency position indicating radio beacons,
on vessels that operate beyond 3 nautical miles from
the baselines from which the territorial sea of the
United States is measured, and which are owned in the
United States or beyond 3 nautical miles from the
coastline of the Great Lakes; and’’.
Subsec. (b)(1). Pub. L. 111–281, § 604(a)(2)(A), struck
out ‘‘documented’’ before ‘‘vessels’’.
Subsec. (b)(1)(A). Pub. L. 111–281, § 604(a)(2)(B), substituted ‘‘3 nautical miles from the baseline from which
the territorial sea of the United States is measured or
beyond 3 nautical miles from the coastline of the Great
Lakes’’ for ‘‘the Boundary Line’’.
Subsec. (b)(2)(B). Pub. L. 111–281, § 604(a)(2)(C), substituted ‘‘a survival craft that ensures that no part of
an individual is immersed in water’’ for ‘‘lifeboats or
liferafts’’.
Subsec. (b)(2)(D). Pub. L. 111–281, § 604(a)(2)(D), inserted ‘‘marine’’ before ‘‘radio communications’’.
Subsec. (b)(2)(E). Pub. L. 111–281, § 604(a)(2)(E), substituted ‘‘nautical charts, and publications’’ for ‘‘radar
reflectors, nautical charts, and anchors’’.
Subsec. (b)(2)(F). Pub. L. 111–281, § 604(a)(2)(F), substituted ‘‘and medical supplies sufficient for the size

Page 87

TITLE 46—SHIPPING

and area of operation of the vessel’’ for ‘‘, including
medicine chests’’.
Subsec. (b)(2)(G). Pub. L. 111–281, § 604(a)(2)(G), amended subpar. (G) generally. Prior to amendment, subpar.
(G) read as follows: ‘‘other equipment required to minimize the risk of injury to the crew during vessel operations, if the Secretary determines that a risk of serious injury exists that can be eliminated or mitigated
by that equipment.’’
Subsec. (f). Pub. L. 111–281, § 604(a)(3), amended subsec. (f) generally. Prior to amendment, subsec. (f) read
as follows: ‘‘To ensure compliance with the requirements of this chapter, at least once every 2 years the
Secretary shall examine—
‘‘(1) a fish processing vessel; and
‘‘(2) a fish tender vessel engaged in the Aleutian
trade.’’
Subsecs. (g) to (j). Pub. L. 111–281, § 604(a)(4), added
subsecs. (g) to (j).
1998—Subsec. (a)(7). Pub. L. 105–383 substituted ‘‘beyond 3 nautical miles from the baselines from which
the territorial sea of the United States is measured,
and which are owned in the United States’’ for ‘‘on the
high seas’’.
1996—Subsec. (a)(7). Pub. L. 104–324 inserted ‘‘or beyond 3 nautical miles from the coastline of the Great
Lakes’’ after ‘‘high seas’’.
1990—Subsec. (b). Pub. L. 101–595, § 602(c)(1), amended
subsec. (b) generally. Prior to amendment, subsec. (b)
read as follows: ‘‘In addition to the requirements of
subsection (a) of this section, the Secretary shall prescribe regulations for documented vessels to which this
chapter applies that operate beyond the Boundary Line
or that operate with more than 16 individuals on board,
for the installation, maintenance, and use of—
‘‘(1) alerting and locating equipment, including
emergency position indicating radio beacons;
‘‘(2) lifeboats or liferafts sufficient to accommodate
all individuals on board;
‘‘(3) at least one readily accessible immersion suit
for each individual on board that vessel when operating on the waters described in section 3102 of this
title;
‘‘(4) radio communications equipment sufficient to
effectively communicate with land-based search and
rescue facilities;
‘‘(5) navigation equipment, including compasses,
radar reflectors, nautical charts, and anchors;
‘‘(6) first aid equipment, including medicine chests;
and
‘‘(7) other equipment required to minimize the risk
of injury to the crew during vessel operations, if the
Secretary determines that a risk of serious injury exists that can be eliminated or mitigated by that
equipment.’’
Subsec. (c). Pub. L. 101–595, § 602(c)(1), amended subsec. (c) generally. Prior to amendment, subsec. (c) read
as follows: ‘‘In addition to the requirements described
in subsections (a) and (b) of this section, the Secretary
may prescribe regulations establishing minimum safety standards for vessels to which this chapter applies
that were built after December 31, 1988, or that undergo
a major conversion completed after that date, and that
operate with more than 16 individuals on board, including standards relating to—
‘‘(1) navigation equipment, including radars and fathometers;
‘‘(2) life saving equipment, immersion suits, signaling devices, bilge pumps, bilge alarms, life rails, and
grab rails;
‘‘(3) fire protection and firefighting equipment, including fire alarms and portable and semiportable
fire extinguishing equipment;
‘‘(4) use and installation of insulation material;
‘‘(5) storage methods for flammable or combustible
material; and
‘‘(6) fuel, ventilation, and electrical systems.’’
Subsec. (f). Pub. L. 101–595, § 602(c)(2), amended subsec. (f) generally. Prior to amendment, subsec. (f) read
as follows: ‘‘The Secretary shall examine a fish process-

§ 4502

ing vessel at least once every two years to ensure that
the vessel complies with the requirements of this chapter.’’
1988—Pub. L. 100–424 amended section generally, substituting ‘‘Safety standards’’ for ‘‘Regulations’’ in section catchline, adding subsecs. (a) and (b), redesignating former subsec. (a) as (c) and establishing list of
standards as minimum safety standards, in addition to
requirements of subsecs. (a) and (b), for vessels built
after Dec. 31, 1988, or that undergo major conversion
completed after that date, that operate with more than
16 individuals on board, adding subsec. (d), redesignating former subsec. (b) as (e) and striking out provisions
which required Secretary to consult with representatives of private sector, experienced in operation of
these vessels, to ensure practicability of regulations,
and adding subsec. (f).
1984—Subsec. (b)(3). Pub. L. 98–557 substituted ‘‘this
chapter’’ for ‘‘the exemption’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Pub. L. 101–595, title VI, § 602(f), Nov. 16, 1990, 104 Stat.
2992, provided that: ‘‘This section [amending this section and sections 2102, 3302, 5102, 8104, and 8702 of this
title, and enacting provisions set out as a note under
section 7306 of this title] is effective on the date of enactment of this section [Nov. 16, 1990] except as follows:
‘‘(1) The requirements imposed by section
3302(c)(4)(B) and (C) of title 46, United States Code,
(as enacted by subsection (b) of this section) is effective 6 months after the date of enactment of this Act.
‘‘(2) Before January 1, 1993, section 4502(c) (as
amended by subsection (c) of this section) does not
apply to a fish tender vessel engaged in the Aleutian
trade, if the vessel—
‘‘(A)(i) before September 8, 1990, operated in that
trade; or
‘‘(ii) before September 8, 1990, was purchased to be
used in that trade and, before June 1, 1992, entered
into service in that trade; and
‘‘(B) does not undergo a major conversion.
‘‘(3) Before January 1, 2003, a fish tender vessel is
exempt from chapter 51 of title 46, United States
Code, (as amended by subsection (d) of this section)
when engaged in the Aleutian trade, if the vessel—
‘‘(A)(i) before September 8, 1990, operated in that
trade; or
‘‘(ii) before September 8, 1990, was purchased to be
used in this trade and, before June 1, 1992, entered
into service in that trade;
‘‘(B) does not undergo a major conversion; and
‘‘(C) did not have a load line assigned at any time
before the date of enactment of this Act.
‘‘(4) The requirements imposed by section 8702(b)(2)
of title 46, United States Code, (as amended by subsection (e)(2)(B) of this section) are effective 1 year
after the date of enactment of this Act.’’
STUDIES REGARDING SAFETY OF FISHING VESSELS
Pub. L. 100–424, § 5(a), Sept. 9, 1988, 102 Stat. 1591, directed Secretary of Transportation, utilizing National
Academy of Engineering and in consultation with National Transportation Safety Board, Commercial Fishing Industry Vessel Advisory Committee, and fishing
industry, to conduct a study of safety problems on fishing industry vessels, and to make recommendations regarding whether a vessel inspection program could be
implemented for fishing vessels, fish tender vessels, and
fish processing vessels, including recommendations on
nature and scope of that inspection, and further provided for submission of the study and recommendations
to Congress before Jan. 1, 1990.
Pub. L. 100–424, § 5(b), Sept. 9, 1988, 102 Stat. 1591, directed Secretary of department in which Coast Guard is
operating, in consultation with Commercial Fishing Industry Vessel Advisory Committee established under
section 4508 of this title, and with representatives of
persons operating fish processing vessels to conduct a
study of fish processing vessels that are not surveyed

§ 4503

TITLE 46—SHIPPING

and classed by an organization approved by Secretary,
and to make recommendations regarding what hull and
machinery requirements could apply to such vessels to
ensure that those vessels are operated and maintained
in a condition in which they are safe to operate at sea,
and further provided for submission of such study and
recommendations to Congress before July 28, 1991.
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

§ 4503. Fishing, fish tender, and fish processing
vessel certification
(a) A vessel to which this section applies may
not be operated unless the vessel—
(1) meets all survey and classification requirements prescribed by the American Bureau of Shipping or another similarly qualified
organization approved by the Secretary; and
(2) has on board a certificate issued by the
American Bureau of Shipping or that other organization evidencing compliance with this
subsection.
(b) This section applies to a fish processing
vessel to which this chapter applies that—
(1) is built after July 27, 1990; or
(2) undergoes a major conversion completed
after that date.
(c) This section applies to a vessel to which
section 4502(b) of this title applies that is at
least 50 feet overall in length and is built after
July 1, 2012.
(d)(1) After January 1, 2020, a fishing vessel,
fish processing vessel, or fish tender vessel to
which section 4502(b) of this title applies shall
comply with an alternate safety compliance program that is developed in cooperation with the
commercial fishing industry and prescribed by
the Secretary, if the vessel—
(A) is at least 50 feet overall in length;
(B) is built before July 1, 2012; and
(C) is 25 years of age or older.
(2) A fishing vessel, fish processing vessel, or
fish tender vessel built before July 1, 2012, that
undergoes a substantial change to the dimension
of or type of vessel completed after the later of
July 1, 2012, or the date the Secretary establishes standards for an alternate safety compliance program, shall comply with such an alternative safety compliance program that is developed in cooperation with the commercial fishing
industry and prescribed by the Secretary.
(3) Alternative safety compliance programs
may be developed for purposes of paragraph (1)
for specific regions and fisheries.
(4) Notwithstanding paragraph (1), vessels
owned by a person that owns more than 30 vessels subject to that paragraph are not required
to meet the alternate safety compliance requirements of that paragraph until January 1, 2030, if
that owner enters into a compliance agreement
with the Secretary that provides for a fixed
schedule for all of the vessels owned by that person to meet requirements of that paragraph by
that date and the vessel owner is meeting that
schedule.
(5) A fishing vessel, fish processing vessel, or
fish tender vessel to which section 4502(b) of this

Page 88

title applies that was classed before July 1, 2012,
shall—
(A) remain subject to the requirements of a
classification society approved by the Secretary; and
(B) have on board a certificate from that society.
(Added Pub. L. 98–364, title IV, § 402(7)(C), July
17, 1984, 98 Stat. 447; amended Pub. L. 98–557,
§ 33(b), Oct. 30, 1984, 98 Stat. 2876; Pub. L. 100–424,
§ 2(a), Sept. 9, 1988, 102 Stat. 1587; Pub. L. 111–281,
title VI, § 604(e)(1), Oct. 15, 2010, 124 Stat. 2966.)
AMENDMENTS
2010—Pub. L. 111–281, § 604(e)(1)(A), substituted ‘‘Fishing, fish tender, and fish processing vessel certification’’ for ‘‘Fish processing vessel certification’’ in
section catchline.
Subsec. (a). Pub. L. 111–281, § 604(e)(1)(B), struck out
‘‘fish processing’’ before ‘‘vessel to which this section
applies’’ in introductory provisions.
Subsecs. (c), (d). Pub. L. 111–281, § 604(e)(1)(C), added
subsecs. (c) and (d).
1988—Pub. L. 100–424 amended section generally, substituting ‘‘Fish processing vessel certification’’ for
‘‘Equivalency’’ in section catchline, and provisions
which require certification issued by American Bureau
of Shipping or similar organization for fish processing
vessel built after July 27, 1990, or undergoes major conversion completed after that date, for provisions which
deemed compliance with this chapter if vessel has unexpired certificate of inspection issued by foreign country that is party to International Convention for Safety of Life at Sea to which United States is party.
1984—Pub. L. 98–557 substituted ‘‘is deemed’’ for
‘‘shall be deemed’’.
ALTERNATIVE SAFETY COMPLIANCE PROGRAM
Pub. L. 111–281, title VI, § 604(f), Oct. 15, 2010, 124 Stat.
2967, provided that: ‘‘No later than January 1, 2017, the
Secretary of the department in which the Coast Guard
is operating shall prescribe an alternative safety compliance program referred to in section 4503(d)(1) of the
title 46, United States Code, as amended by this section.’’

§ 4504. Prohibited acts
A person may not operate a vessel in violation
of this chapter or a regulation prescribed under
this chapter.
(Added Pub. L. 98–364, title IV, § 402(7)(C), July
17, 1984, 98 Stat. 447; amended Pub. L. 100–424,
§ 2(a), Sept. 9, 1988, 102 Stat. 1587.)
AMENDMENTS
1988—Pub. L. 100–424 amended section generally, substituting ‘‘Prohibited acts’’ for ‘‘Penalties’’ in section
catchline, and provisions prohibiting operation of vessel in violation of this chapter, for provisions which imposed civil penalty not more than $1,000 for operation
of vessel in violation of chapter, and liability in rem
for penalty.

§ 4505. Termination of unsafe operations
An official authorized to enforce this chapter—
(1) may direct the individual in charge of a
vessel to which this chapter applies to immediately take reasonable steps necessary for the
safety of individuals on board the vessel if the
official observes the vessel being operated in
an unsafe condition that the official believes
creates an especially hazardous condition, in-

Page 89

TITLE 46—SHIPPING

cluding ordering the individual in charge to
return the vessel to a mooring and to remain
there until the situation creating the hazard is
corrected or ended; and
(2) may order the individual in charge of an
uninspected fish processing vessel that does
not have on board the certificate required
under section 4503(1) of this title to return the
vessel to a mooring and to remain there until
the vessel is in compliance with that section.
(Added Pub. L. 100–424, § 2(a), Sept. 9, 1988, 102
Stat. 1587.)
§ 4506. Exemptions
(a) 1 The Secretary may exempt a vessel from
any part of this chapter if, under regulations
prescribed by the Secretary (including regulations on special operating conditions), the Secretary finds that—
(1) good cause exists for granting an exemption; and
(2) the safety of the vessel and those on
board will not be adversely affected.
(Added Pub. L. 100–424, § 2(a), Sept. 9, 1988, 102
Stat. 1587; amended Pub. L. 102–587, title V,
§ 5222, Nov. 4, 1992, 106 Stat. 5081; Pub. L. 105–383,
title III, § 301(b)(6), Nov. 13, 1998, 112 Stat. 3417;
Pub. L. 111–281, title VI, § 604(b), Oct. 15, 2010, 124
Stat. 2964.)
AMENDMENTS
2010—Subsec. (b). Pub. L. 111–281 struck out subsec.
(b) which read as follows: ‘‘A vessel to which this chapter applies is exempt from section 4502(b)(2)(B) of this
title if it—
‘‘(1) is less than 36 feet in length; and
‘‘(2) is operating—
‘‘(A) in internal waters of the United States; or
‘‘(B) within 3 nautical miles from the baselines
from which the territorial sea of the United States
is measured.’’
1998—Subsec. (b)(2). Pub. L. 105–383 added par. (2) and
struck out former par. (2) which read as follows: ‘‘is not
operating on the high seas.’’
1992—Subsec. (b). Pub. L. 102–587 substituted
‘‘4502(b)(2)(B)’’ for ‘‘4502(b)(2)’’.
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

§ 4507. Penalties
(a) The owner, charterer, managing operator,
agent, master, and individual in charge of a vessel to which this chapter applies which is operated in violation of this chapter or a regulation
prescribed under this chapter may each be assessed a civil penalty by the Secretary of not
more than $5,000. Any vessel with respect to
which a penalty is assessed under this subsection is liable in rem for the penalty.
(b) A person willfully violating this chapter or
a regulation prescribed under this chapter shall
be fined not more than $5,000, imprisoned for not
more than one year, or both.
(Added Pub. L. 100–424, § 2(a), Sept. 9, 1988, 102
Stat. 1588.)
1 So

in original. There is no subsec. (b).

§ 4508

§ 4508. Commercial Fishing Safety Advisory Committee
(a) The Secretary shall establish a Commercial Fishing Safety Advisory Committee. The
Committee—
(1) may advise, consult with, report to, and
make recommendations to the Secretary on
matters relating to the safe operation of vessels to which this chapter applies, including
navigation safety, safety equipment and procedures, marine insurance, vessel design, construction, maintenance and operation, and
personnel qualifications and training;
(2) may review proposed regulations under
this chapter;
(3) may make available to Congress any information, advice, and recommendations that
the Committee is authorized to give to the
Secretary; and
(4) shall meet at the call of the Secretary,
who shall call such a meeting at least once
during each calendar year.
(b)(1) The Committee shall consist of eighteen
members with particular expertise, knowledge,
and experience regarding the commercial fishing
industry as follows:
(A) ten members who shall represent the
commercial fishing industry and who—
(i) reflect a regional and representational
balance; and
(ii) have experience in the operation of
vessels to which this chapter applies or as a
crew member or processing line worker on a
fish processing vessel;
(B) three members who shall represent the
general public, including, whenever possible—
(i) an independent expert or consultant in
maritime safety;
(ii) a marine surveyor who provides services to vessels to which this chapter applies;
and
(iii) a person familiar with issues affecting
fishing communities and families of fishermen;
(C) one member each of whom shall represent—
(i) naval architects and marine engineers;
(ii) manufacturers of equipment for vessels
to which this chapter applies;
(iii) education or training professionals related to fishing vessel, fish processing vessel,
or fish tender vessel safety or personnel
qualifications;
(iv) underwriters that insure vessels to
which this chapter applies; and
(v) owners of vessels to which this chapter
applies.
(2) At least once each year, the Secretary shall
publish a notice in the Federal Register and in
newspapers of general circulation in coastal
areas soliciting nominations for membership on
the Committee, and, after timely notice is published, appoint the members of the Committee.
An individual may be appointed to a term as a
member of the Committee more than once. The
Secretary may not seek or use information concerning the political affiliation of individuals in
making appointments to the Committee.
(3)(A) A member of the Committee shall serve
a term of three years.

§ 4508

TITLE 46—SHIPPING

(B) If a vacancy occurs in the membership of
the Committee, the Secretary shall appoint a
member to fill the remainder of the vacated
term.
(4) The Committee shall elect one of its members as the Chairman and one of its members as
the Vice Chairman. The Vice Chairman shall act
as Chairman in the absence or incapacity of, or
in the event of a vacancy in the office of, the
Chairman.
(5) The Secretary shall, and any other interested agency may, designate a representative to
participate as an observer with the Committee.
These representatives shall, as appropriate, report to and advise the Committee on matters relating to vessels to which this chapter applies
which are under the jurisdiction of their respective agencies. The Secretary’s designated representative shall act as executive secretary for
the Committee and perform the duties set forth
in section 10(c) of the Federal Advisory Committee Act (5 App. U.S.C.).
(c)(1) The Secretary shall, whenever practicable, consult with the Committee before taking any significant action relating to the safe
operation of vessels to which this chapter applies.
(2) The Secretary shall consider the information, advice, and recommendations of the Committee in consulting with other agencies and the
public or in formulating policy regarding the
safe operation of vessels to which this chapter
applies.
(d)(1) A member of the Committee who is not
an officer or employee of the United States or a
member of the Armed Forces, when attending
meetings of the Committee or when otherwise
engaged in the business of the Committee, is entitled to receive—
(A) compensation at a rate fixed by the Secretary, not exceeding the daily equivalent of
the current rate of basic pay in effect for
GS–18 of the General Schedule under section
5332 of title 5 including travel time; and
(B) travel or transportation expenses under
section 5703 of title 5.
(2) Payments under this section do not render
a member of the Committee an officer or employee of the United States or a member of the
Armed Forces for any purpose.
(3) A member of the Committee who is an officer or employee of the United States or a member of the Armed Forces may not receive additional pay based on the member’s service to the
Committee.
(4) The provisions of this section relating to
an officer or employee of the United States or a
member of the Armed Forces do not apply to a
member of a reserve component of the Armed
Forces unless that member is in an active
status.
(e)(1) The Federal Advisory Committee Act (5
App. U.S.C.) applies to the Committee, except
that the Committee terminates on September
30, 2020.
(2) Two years prior to the termination date referred to in paragraph (1) of this subsection, the
Committee shall submit to Congress its recommendation regarding whether the Committee
should be renewed and continued beyond the termination date.

Page 90

(Added Pub. L. 100–424, § 2(a), Sept. 9, 1988, 102
Stat. 1588; amended Pub. L. 101–225, title I, § 106,
Dec. 12, 1989, 103 Stat. 1910; Pub. L. 102–241, § 25,
Dec. 19, 1991, 105 Stat. 2217; Pub. L. 104–324, title
III, § 304(b), Oct. 19, 1996, 110 Stat. 3917; Pub. L.
107–295, title III, § 331(a), Nov. 25, 2002, 116 Stat.
2105; Pub. L. 108–293, title IV, § 418(a), Aug. 9,
2004, 118 Stat. 1049; Pub. L. 109–241, title IX,
§ 901(g), July 11, 2006, 120 Stat. 564; Pub. L.
111–281, title VI, § 604(c)(1)–(3), Oct. 15, 2010, 124
Stat. 2964, 2965.)
REFERENCES IN TEXT
The Federal Advisory Committee Act, referred to in
subsecs. (b)(5) and (e)(1), is Pub. L. 92–463, Oct. 6, 1972,
86 Stat. 770, as amended, which is set out in the Appendix to Title 5, Government Organization and Employees.
AMENDMENTS
2010—Pub. L. 111–281, § 604(c)(1)(A), substituted ‘‘Commercial Fishing Safety Advisory Committee’’ for
‘‘Commercial Fishing Industry Vessel Safety Advisory
Committee’’ in section catchline.
Subsec. (a). Pub. L. 111–281, § 604(c)(1)(B), struck out
‘‘Industry Vessel’’ after ‘‘Commercial Fishing’’ in introductory provisions.
Subsec. (b)(1). Pub. L. 111–281, § 604(c)(2)(A), substituted ‘‘eighteen’’ for ‘‘seventeen’’ in introductory
provisions.
Subsec. (b)(1)(A). Pub. L. 111–281, § 604(c)(2)(B)(i), substituted ‘‘who shall represent the commercial fishing
industry and who—’’ for ‘‘from the commercial fishing
industry who—’’ in introductory provisions.
Subsec. (b)(1)(A)(ii). Pub. L. 111–281, § 604(c)(2)(B)(ii),
substituted ‘‘a fish processing’’ for ‘‘an uninspected fish
processing’’.
Subsec. (b)(1)(B). Pub. L. 111–281, § 604(c)(2)(C), added
subpar. (B) and struck out former subpar. (B) which
read as follows: ‘‘three members from the general public, including, whenever possible, an independent expert
or consultant in maritime safety and a member of a national organization composed of persons representing
owners of vessels to which this chapter applies and persons representing the marine insurance industry;’’.
Subsec. (b)(1)(C). Pub. L. 111–281, § 604(c)(2)(D)(i), substituted ‘‘each of whom shall represent—’’ for ‘‘representing each of—’’ in introductory provisions.
Subsec. (b)(1)(C)(i). Pub. L. 111–281, § 604(c)(2)(D)(ii),
substituted ‘‘and marine engineers;’’ for ‘‘or marine
surveyors;’’.
Subsec.
(b)(1)(C)(v).
Pub.
L.
111–281,
§ 604(c)(2)(D)(iii)–(v), added cl. (v).
Subsec. (e)(1). Pub. L. 111–281, § 604(c)(3), substituted
‘‘September 30, 2020’’ for ‘‘September 30, 2010’’.
2006—Subsec. (e)(1). Pub. L. 109–241 amended directory
language of Pub. L. 108–293, § 418(a). See 2004 Amendment note below.
2004—Subsec. (e)(1). Pub. L. 108–293, § 418(a), as amended by Pub. L. 109–241, substituted ‘‘on September 30,
2010’’ for ‘‘on September 30, 2005’’.
2002—Pub. L. 107–295, § 331(a)(1), inserted ‘‘Safety’’
after ‘‘Vessel’’ in section catchline.
Subsec. (a). Pub. L. 107–295, § 331(a)(2), inserted ‘‘Safety’’ after ‘‘Vessel’’ in introductory provisions.
Subsec. (e)(1). Pub. L. 107–295, § 331(a)(4), substituted
‘‘on September 30, 2005’’ for ‘‘on September 30, 2000’’.
Pub. L. 107–295, § 331(a)(3), which directed the substitution of ‘‘(5 App. U.S.C.)’’ for ‘‘(5 App. U.S.C. 1 et
seq.)’’, was executed by making substitution for ‘‘(5
U.S.C. App. 1 et seq.)’’, to reflect the probable intent of
Congress.
1996—Subsec. (e)(1). Pub. L. 104–324 substituted ‘‘2000’’
for ‘‘1994’’.
1991—Subsec. (e)(1). Pub. L. 102–241 substituted ‘‘1994’’
for ‘‘1992’’.
1989—Subsec. (b)(2). Pub. L. 101–225 inserted provision
that Secretary not seek or use information concerning
political affiliation in making appointments.

Page 91

EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109–241, title IX, § 901(g), July 11, 2006, 120
Stat. 564, provided that the amendment made by section 901(g) is effective Aug. 9, 2004.
REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY
RATES
References in laws to the rates of pay for GS–16, 17,
or 18, or to maximum rates of pay under the General
Schedule, to be considered references to rates payable
under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, § 101(c)(1)]
of Pub. L. 101–509, set out in a note under section 5376
of Title 5.
INITIAL APPOINTMENTS TO COMMERCIAL FISHING
INDUSTRY ADVISORY COMMITTEE
Pub. L. 100–424, § 2(b), Sept. 9, 1988, 102 Stat. 1589, provided that:
‘‘(1) TERMS OF INITIAL APPOINTMENTS.—Of the members first appointed to the Commercial Fishing Industry Advisory Committee under section 4508 of title 46,
United States Code (as amended by this Act)—
‘‘(A) one-third of the members shall serve a term of
one year and one-third of the members shall serve a
term of two years, to be determined by lot at the first
meeting of the Committee; and
‘‘(B) terms may be adjusted to coincide with the
Government’s fiscal year.
‘‘(2) COMPLETION OF INITIAL APPOINTMENTS.—The Secretary shall complete appointment of members pursuant to this subsection not later than 90 days after the
date of the enactment of this Act [Sept. 9, 1988].’’

CHAPTER 47—ABANDONMENT OF BARGES
Sec.

4701.
4702.
4703.
4704.
4705.

§ 4704

TITLE 46—SHIPPING

Definitions.
Abandonment of barge prohibited.
Penalty for unlawful abandonment of barge.
Removal of abandoned barges.
Liability of barge removal contractors.

§ 4701. Definitions
In this chapter—
(1) ‘‘abandon’’ means to moor, strand, wreck,
sink, or leave a barge of more than 100 gross
tons as measured under section 14502 of this
title, or an alternate tonnage measured under
section 14302 of this title as prescribed by the
Secretary under section 14104 of this title unattended for longer than forty-five days.
(2) ‘‘barge removal contractor’’ means a person that enters into a contract with the
United States to remove an abandoned barge
under this chapter.
(3) ‘‘navigable waters of the United States’’
means waters of the United States, including
the territorial sea.
(4) ‘‘removal’’ or ‘‘remove’’ means relocation, sale, scrapping, or other method of disposal.
(Added Pub. L. 102–587, title V, § 5302, Nov. 4,
1992, 106 Stat. 5081; amended Pub. L. 104–324, title
VII, § 718, Oct. 19, 1996, 110 Stat. 3937.)
AMENDMENTS
1996—Par. (1). Pub. L. 104–324 inserted ‘‘as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’.
APPLICATION TO CERTAIN BARGES
Pub. L. 102–587, title V, § 5303, Nov. 4, 1992, 106 Stat.
5083, provided that: ‘‘Chapter 47 of title 46, United

States Code, as added by subsection (a) [section 5302],
does not apply to a barge abandoned before June 11,
1992, if the barge was removed before the date that is
1 year after the date of enactment of this title [Nov. 4,
1992].’’
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

§ 4702. Abandonment of barge prohibited
An owner or operator of a barge may not abandon it on the navigable waters of the United
States. A barge is deemed not to be abandoned
if—
(1) it is located at a Federally- or State-approved mooring area;
(2) it is on private property with the permission of the owner of the property; or
(3) the owner or operator notifies the Secretary that the barge is not abandoned and the
location of the barge.
(Added Pub. L. 102–587, title V, § 5302, Nov. 4,
1992, 106 Stat. 5082; amended Pub. L. 109–304,
§ 15(18), Oct. 6, 2006, 120 Stat. 1703.)
AMENDMENTS
2006—Pub. L. 109–304 struck out subsec. (a) designation before ‘‘An owner’’.

§ 4703. Penalty for unlawful abandonment of
barge
Thirty days after the notification procedures
under section 4704(a)(1) are completed, the Secretary may assess a civil penalty of not more
than $1,000 for each day of the violation against
an owner or operator that violates section 4702.
A vessel with respect to which a penalty is assessed under this chapter is liable in rem for the
penalty.
(Added Pub. L. 102–587, title V, § 5302, Nov. 4,
1992, 106 Stat. 5082.)
§ 4704. Removal of abandoned barges
(a)(1) The Secretary may remove a barge that
is abandoned after complying with the following
procedures:
(A) If the identity of the owner or operator
can be determined, the Secretary shall notify
the owner or operator by certified mail—
(i) that if the barge is not removed it will
be removed at the owner’s or operator’s expense; and
(ii) of the penalty under section 4703.
(B) If the identity of the owner or operator
cannot be determined, the Secretary shall
publish an announcement in—
(i) a notice to mariners; and
(ii) an official journal of the county in
which the barge is located
that if the barge is not removed it will be removed at the owner’s or operator’s expense.
(2) The United States, and any officer or employee of the United States is not liable to an
owner or operator for damages resulting from
removal of an abandoned barge under this chapter.
(b) The owner or operator of an abandoned
barge is liable, and an abandoned barge is liable

§ 4705

TITLE 46—SHIPPING

in rem, for all expenses that the United States
incurs in removing an abandoned barge under
this chapter.
(c)(1) The Secretary may, after providing notice under subsection (a)(1), solicit by public advertisement sealed bids for the removal of an
abandoned barge.
(2) After solicitation under paragraph (1) the
Secretary may award a contract. The contract—
(A) may be subject to the condition that the
barge and all property on the barge is the
property of the barge removal contractor; and
(B) must require the barge removal contractor to submit to the Secretary a plan for the
removal.
(3) Removal of an abandoned barge may begin
thirty days after the Secretary completes the
procedures under subsection (a)(1).
(Added Pub. L. 102–587, title V, § 5302, Nov. 4,
1992, 106 Stat. 5082.)
§ 4705. Liability of barge removal contractors
(a) A barge removal contractor and its subcontractor are not liable for damages that result
from actions taken or omitted to be taken in
the course of removing a barge under this chapter.
(b) Subsection (a) does not apply—
(1) with respect to personal injury or wrongful death; or
(2) if the contractor or subcontractor is
grossly negligent or engages in willful misconduct.
(Added Pub. L. 102–587, title V, § 5302, Nov. 4,
1992, 106 Stat. 5083; amended Pub. L. 109–304,
§ 15(19), Oct. 6, 2006, 120 Stat. 1703.)
AMENDMENTS
2006—Pub. L. 109–304 in subsec. (a) struck out par. (1)
designation before ‘‘A barge removal’’ and substituted
‘‘subcontractor are not’’ for ‘‘subcontractor not’’, redesignated par. (2) as subsec. (b) and subpars. (A) and
(B) of former par. (2) as pars. (1) and (2) of subsec. (b),
respectively, and substituted ‘‘Subsection (a)’’ for
‘‘Paragraph (1)’’.

PART C—LOAD LINES OF VESSELS
HISTORICAL AND REVISION NOTES
Part C contains provisions that apply to load lines. A
load line is a mark drawn on a vessel that indicates
whether a vessel is overloaded. Load line requirements
for international voyages are based not only on domestic law but also the 1966 International Load Line Convention.

CHAPTER 51—LOAD LINES
Sec.

5101.
5102.
5103.
5104.
5105.
5106.
5107.
5108.
5109.
5110.
5111.
5112.
5113.
5114.

Definitions.
Application.
Load line requirements.
Assignment of load lines.
Load line surveys.
Load line certificate.
Delegation of authority.
Special exemptions.
Reciprocity for foreign vessels.
Submersible vessels.
Providing loading information.
Loading restrictions.
Detention of vessels.
Use of Customs Service officers and employees for enforcement.

Page 92

Sec.

[5115.
5116.

Repealed.]
Penalties.
HISTORICAL AND REVISION NOTES

Chapter 51 provides for the assignment of load lines
and issuance of load line certificates to vessels, and requires that certain classes of vessels be marked with
load lines.
AMENDMENTS
1990—Pub. L. 101–595, title VI, § 603(5)(B), Nov. 16, 1990,
104 Stat. 2993, struck out item 5115 ‘‘Regulations’’.

§ 5101. Definitions
In this chapter—
(1) ‘‘domestic voyage’’ means movement of a
vessel between places in, or subject to the jurisdiction of, the United States, except movement between—
(A) a place in a territory or possession of
the United States or the Trust Territory of
the Pacific Islands; and
(B) a place outside that territory, possession, or Trust Territory.
(2) ‘‘economic benefit of the overloading’’
means the amount obtained by multiplying
the weight of the overload (in tons) by the
lesser of—
(A) the average freight rate value of a ton
of the vessel’s cargo for the voyage; or
(B) $50.
(3) ‘‘existing vessel’’ means—
(A) a vessel on a domestic voyage, the keel
of which was laid, or that was at a similar
stage of construction, before January 1, 1986;
and
(B) a vessel on a foreign voyage, the keel
of which was laid, or that was at a similar
stage of construction, before July 21, 1968.
(4) ‘‘freeboard’’ means the distance from the
mark of the load line assigned under this
chapter to the freeboard deck.
(5) ‘‘freeboard deck’’ means the deck or
other structure the Secretary prescribes by
regulation.
(6) ‘‘minimum safe freeboard’’ means the
freeboard that the Secretary decides cannot be
reduced safely without limiting the operation
of the vessel.
(7) ‘‘weight of the overload’’ means the
amount obtained by multiplying the number
of inches that the vessel is submerged below
the applicable assigned freeboard by the tonsan-inch immersion factor for the vessel at the
assigned minimum safe freeboard.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1913.)
HISTORICAL AND REVISION NOTES
Revised section 5101
Source: Section (U.S. Code) 46 App. U.S.C. 86a.
Section 5101 contains definitions that are limited to
Chapter 51—Load Lines. Existing Section 46 App. U.S.C.
86a (which defines only the terms ‘‘new ship’’ and ‘‘existing ship’’) will be replaced by section 5101. Definitions of technical terms (‘‘freeboard’’, ‘‘freeboard
deck’’, and ‘‘minimum safe freeboard’’) have been added
for clarity. The definition of the term ‘‘new ship’’ has
been deleted because the term is not used in Chapter 51.
The definition of ‘‘domestic voyage’’ includes the

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TITLE 46—SHIPPING

phrase ‘‘places in or subject to the jurisdiction of the
United States.’’ ‘‘Places subject to the jurisdiction of
the United States’’ include deep water ports, production platforms, mining sites outside of territorial waters of the United States but within the United States’
Exclusive Economic Zone (EEZ) that was established
by Presidential Proclamation 5030, dated March 10,
1983, or on the outer continental shelf. The phrases
‘‘economic benefit of overloading’’ and ‘‘weight of the
overload’’ have been defined for purposes of establishing a standard method of determining the value of the
cargo with which a vessel is overloaded. The value of
the cargo will in turn affect the maximum penalty assessed for overloading the vessel. The definition of
‘‘freeboard deck’’ provides the Secretary with the authority to designate as the freeboard deck either the
actual deck (on standard vessels) or another structure
(on non-standard vessels). Non-standard vessels, for
which this regulatory flexibility is necessary, include
shelter deck vessels, semi-submersible multi-hull units,
container ships, surface effect vessels, and commercial
submarines.
TERMINATION OF TRUST TERRITORY OF THE PACIFIC
ISLANDS
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title
48, Territories and Insular Possessions.

§ 5102. Application
(a) Except as provided in subsection (b) of this
section, this chapter applies to the following:
(1) a vessel of the United States.
(2) a vessel on the navigable waters of the
United States.
(3) a vessel—
(A) owned by a citizen of the United States
or a corporation established by or under the
laws of the United States or a State; and
(B) not registered in a foreign country.
(4) a public vessel of the United States.
(5) a vessel otherwise subject to the jurisdiction of the United States.
(b) This chapter does not apply to the following:
(1) a vessel of war.
(2) a recreational vessel when operated only
for pleasure.
(3) a fishing vessel, unless the vessel is built
after July 1, 2012.
(4) a fish processing vessel of not more than
5,000 gross tons as measured under section
14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title that—
(A)(i) was constructed as a fish processing
vessel before August 16, 1974; or
(ii) was converted for use as a fish processing vessel before January 1, 1983; and
(B) is not on a foreign voyage.
(5) a fish tender vessel of not more than 500
gross tons as measured under section 14502 of
this title, or an alternate tonnage measured
under section 14302 of this title as prescribed
by the Secretary under section 14104 of this
title that—
(A)(i) was constructed, under construction,
or under contract to be constructed as a fish
tender vessel before January 1, 1980; or
(ii) was converted for use as a fish tender
vessel before January 1, 1983; and

§ 5102

(B)(i) is not on a foreign voyage; or
(ii) is not engaged in the Aleutian trade
(except a vessel in that trade assigned a load
line at any time before June 1, 1992).
(6) a vessel of the United States on a domestic voyage that does not cross the Boundary
Line, except a voyage on the Great Lakes.
(7) a vessel of less than 24 meters (79 feet)
overall in length.
(8) a public vessel of the United States on a
domestic voyage.
(9) a vessel excluded from the application of
this chapter by an international agreement to
which the United States Government is a
party.
(10) an existing vessel of not more than 150
gross tons as measured under section 14502 of
this title, or an alternate tonnage measured
under section 14302 of this title as prescribed
by the Secretary under section 14104 of this
title that is on a domestic voyage.
(11) a small passenger vessel on a domestic
voyage.
(12) a vessel of the working fleet of the Panama Canal Commission not on a foreign voyage.
(c) On application by the owner and after a
survey under section 5105 of this title, the Secretary may assign load lines for a vessel excluded from the application of this chapter
under subsection (b) of this section. A vessel assigned load lines under this subsection is subject
to this chapter until the surrender of its load
line certificate and the removal of its load line
marks.
(d) This chapter does not affect an international agreement to which the Government is
a party that is not in conflict with the International Convention on Load Lines currently in
force for the United States.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1914; Pub. L. 101–595, title VI, § 602(d), Nov.
16, 1990, 104 Stat. 2991; Pub. L. 104–324, title VII,
§ 719, Oct. 19, 1996, 110 Stat. 3938; Pub. L. 107–295,
title IV, § 436(a), Nov. 25, 2002, 116 Stat. 2129; Pub.
L. 111–281, title VI, § 604(d)(1), Oct. 15, 2010, 124
Stat. 2965.)
HISTORICAL AND REVISION NOTES
Revised section 5102
Source: Section (U.S. Code) 46 App. U.S.C. 86b, 86c, 88.
The delineation of the vessels that will be subject to
load line requirements is made in section 5102 as follows: subsection (a) is an all-inclusive list of vessels
subject to load line requirements, followed by subsection (b) which specifically exempts those vessels to
which the requirements do not apply.
Section 5102(a) lists five categories of vessels which
are subject to load line requirements. They are as follows:
Clause (1) regarding ‘‘a vessel of the United States’’
includes all vessels documented under Chapter 121 of
title 46 or numbered under Chapter 123 of title 46.
Clause (2) regarding ‘‘a vessel on the navigable waters
of the United States’’ includes all domestic or foreign
vessels found in or on the navigable waters of the
United States.
Clause (3) regarding ‘‘a vessel owned by a citizen of
the United States or a corporation established by or
under the laws of the United States or a State, and not
registered in a foreign country’’ includes all vessels
owned by citizens of the United States (as defined in

§ 5102

TITLE 46—SHIPPING

5107(7)) [sic] and not registered under the laws of a foreign country, wherever the vessels may be located.
Clause (4) regarding ‘‘a public vessel of the United
States’’ includes all United States public vessels.
Clause (5) regarding ‘‘a vessel otherwise subject to
the jurisdiction of the United States’’ includes foreign
vessels that are subject to United States jurisdiction as
a result of bilateral agreements, licenses, customary
international law or other means, including those using
deepwater port or outer continental shelf or EEZ facilities located in areas subject to the jurisdiction of the
United States.
Section 5102(b) lists the specific exemptions from load
line requirements. The specific exemptions may be
grouped as follows:
(a) Vessel type (ships of war, pleasure vessels, fishing vessels, small passenger vessels on domestic voyages);
(b) Area of operation (rivers, harbors, bays, sounds,
etc.);
(c) Minimum size (length); and
(d) Treaty exclusions.
Clause (1) exempts vessels of war from load line requirements.
Clause (2) exempts recreational vessels operated only
for pleasure from load line requirements.
Clause (3) exempts fishing vessels from load line requirements.
Clauses (4) and (5) exempt certain existing fish processing and fish tender vessels not on a foreign voyage
from load line requirements. The exception is limited
to those vessels not on international voyages to ensure
compliance with United States obligations under the
International Load Line Convention.
Clause (6) exempts from load line requirements all
U.S. vessels operating on domestic voyages within the
Boundary Line, as defined in section 2101 of this title,
except vessels operating on the Great Lakes.
Clause (7) exempts all vessels that are less than 24
meters (79 feet) in length from load line requirements
whether on international or domestic voyages.
Clause (8) exempts from load line requirements those
public vessels that are on domestic voyages.
Clause (9) exempts from load line requirements those
vessels which have been excluded from the requirements ‘‘by specific action of a treaty of the United
States.’’ The only current treaty which excludes vessels from load line requirements is the Convention Between the United States of America and the Dominion
of Canada Concerning Load Lines (49 Stat. 2685), which
entered into force on August 11, 1934.
Clause (10) exempts from load line requirements existing U.S. vessels that are under 150 gross tons while
engaged on a domestic voyage. This is a grandfather
provision, continuing the existing exemption for these
vessels. Vessels built after January 1, 1986 must be
marked with a load line, however, if they are over 79
feet long and do not qualify for any other exemption.
Clause (11) exempts small passenger vessels engaged
on domestic voyages from load line requirements.
Small passenger vessels are inspected under Subchapter T of Title 46 of the Code of Federal Regulations. Under Subchapter T, the Coast Guard regulates
these vessels with regard to safety; the requirements
are based on the number of passengers, length, and
gross tonnage of the vessel. Safety-related requirements in Subchapter T regulations include hull structure and watertightness, stability, weathertight integrity, and safe movement of persons on deck, the principal safety features covered by load line regulations.
This specific exemption from load line requirements for
small passenger vessels is consistent with existing law
and does not alter in any way the Coast Guard’s authority to regulate small passenger vessels under Subchapter T.
Clause (12) exempts vessels of the working voyages
from the requirement to have load lines.
Section 5102(c) authorizes the Secretary to assign
load lines for any vessel exempted from load line requirements by subsection (b) upon the request of the

Page 94

owner. It also provides that any exempted vessel for
which load lines are assigned will remain subject to the
load line requirements until its load line certificate is
surrendered and the load line marks are removed.
Section 5102(d) provides that this chapter shall not be
construed as abrogating the provisions of other treaties
and conventions to which the United States is a party,
which are not in conflict with the International Convention on Load Lines.
AMENDMENTS
2010—Subsec. (b)(3). Pub. L. 111–281 inserted ‘‘, unless
the vessel is built after July 1, 2012’’ after ‘‘vessel’’.
2002—Subsec. (b)(5)(B)(ii). Pub. L. 107–295 inserted ‘‘is
not’’ after ‘‘(ii)’’.
1996—Subsec. (b)(4). Pub. L. 104–324, § 719(1), inserted
‘‘as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104
of this title’’ after ‘‘5,000 gross tons’’ in introductory
provisions.
Subsec. (b)(5). Pub. L. 104–324, § 719(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘500 gross tons’’ in introductory provisions.
Subsec. (b)(10). Pub. L. 104–324, § 719(3), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘150 gross tons’’.
1990—Subsec. (b)(5)(B). Pub. L. 101–595 amended subpar. (B) generally. Prior to amendment, subpar. (B)
read as follows: ‘‘is not on a foreign voyage.’’
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–595 effective Nov. 16, 1990,
with provision that before Jan. 1, 2003, a fish tender
vessel is exempt from this chapter when engaged in
Aleutian trade if the vessel either operated in that
trade before Sept. 8, 1990, or was purchased before that
date to be used in such trade and entered into service
in that trade before June 1, 1992, did not undergo a
major conversion, and did not have a load line assigned
at any time before Nov. 16, 1990, see section 602(f) of
Pub. L. 101–595, set out as a note under section 4502 of
this title.
FISH TENDER VESSELS IN ALEUTIAN TRADE
Pub. L. 107–295, title IV, § 436(b), (c), Nov. 25, 2002, 116
Stat. 2129, provided that:
‘‘(b) IMPLEMENTATION.—Except as provided in subsection (c), a fish tender vessel that before January 1,
2003, transported cargo (not including fishery related
products) in the Aleutian trade is subject to chapter 51
of title 46, United States Code (as amended by subsection (a) of this section [amending this section]).
‘‘(c) EXCEPTION.—
‘‘(1) IN GENERAL.—Before December 31, 2006, the
BOWFIN (United States official number 604231) is exempt from chapter 51 of title 46, United States Code
(as amended by subsection (a) of this section) when
engaged in the Aleutian trade, if the vessel does not
undergo a major conversion.
‘‘(2) ENSURING SAFETY.—Before the date referred to
in paragraph (1), a Coast Guard official who has reason to believe that the vessel referred to in paragraph
(1) operating under this subsection is in a condition
or is operated in a manner that creates an immediate
threat to life or the environment or is operated in a
manner that is inconsistent with section 3302 of title
46, United States Code, may direct the master or individual in charge to take immediate and reasonable
steps to safeguard life and the environment, including directing the vessel to a port or other refuge.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relat-

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§ 5106

TITLE 46—SHIPPING

ing thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]

bors. The Secretary may reduce the minimum
freeboard of a vessel operating in these areas.

§ 5103. Load line requirements

Revised section 5104
Source: Section (U.S. Code) 46 App. U.S.C. 86c, 88a.
Section 5104(a) requires the Secretary to assign load
lines indicating the minimum safe freeboard to which
a vessel may be loaded. It also authorizes the Secretary
to assign a load line that results in a freeboard that is
greater than the minimum freeboard, if the owner requests.
Section 5104(b) sets forth guidelines that the Secretary must consider when assigning load lines on vessels.
Section 5104(c) allows an existing vessel to retain its
load line assigned before January 1, 1986, unless the
Secretary decides that a change made in the vessel requires the assignment of a new load line.
Section 5104(d) is a new provision that requires that
a vessel comply with all the provisions of this chapter
before the Secretary will consider a reduction in its
minimum freeboard. This provision is similar to Article 4(4) of the International Convention on Load Lines.
Section 5104(e) is a new provision that authorized the
Secretary to designate specific geographic areas having
relatively non-severe weather or sea conditions and
from which there is adequate time to return to safe
harbors. Section 5104(e) also authorizes the Secretary
to reduce the minimum freeboard of vessels operating
in these areas. Regulations that have been issued under
this authority (46 C.F.R. 44) authorize special service
load lines for vessels operating not more than 20 nautical miles offshore or between islands in a group.

(a) A vessel may be operated only if the vessel
has been assigned load lines.
(b) The owner, charterer, managing operator,
agent, master, and individual in charge of a vessel shall mark and maintain the load lines permanently and conspicuously in the way prescribed by the Secretary.
(c) A fishing vessel built on or before July 1,
2012, that undergoes a substantial change to the
dimension of or type of the vessel completed
after the later of July 1, 2012, or the date the
Secretary establishes standards for an alternate
loadline compliance program, shall comply with
such an alternative loadline compliance program that is developed in cooperation with the
commercial fishing industry and prescribed by
the Secretary.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1915; Pub. L. 111–281, title VI, § 604(d)(2),
Oct. 15, 2010, 124 Stat. 2965.)
HISTORICAL AND REVISION NOTES
Revised section 5103
Source: Section (U.S. Code) 46 App. U.S.C. 86c, 88b.
Section 5103(a) prohibits a vessel that is subject to
load line requirements from operating, unless it has
load lines assigned by the Secretary.
Section 5103(b) requires that load lines be permanently and conspicuously maintained in the manner
prescribed by the Secretary.
AMENDMENTS
2010—Subsec. (c). Pub. L. 111–281 added subsec. (c).

§ 5104. Assignment of load lines
(a) The Secretary shall assign load lines for a
vessel so that they indicate the minimum safe
freeboard to which the vessel may be loaded.
However, if the owner requests, the Secretary
may assign load lines that result in greater freeboard than the minimum safe freeboard.
(b) In assigning load lines for a vessel, the Secretary shall consider—
(1) the service, type, and character of the
vessel;
(2) the geographic area in which the vessel
will operate; and
(3) applicable international agreements to
which the United States Government is a
party.
(c) An existing vessel may retain its load lines
assigned before January 1, 1986, unless the Secretary decides that a substantial change in the
vessel after those load lines were assigned requires that new load lines be assigned under this
chapter.
(d) The minimum freeboard of an existing vessel may be reduced only if the vessel complies
with every applicable provision of this chapter.
(e) The Secretary may designate by regulation
specific geographic areas that have less severe
weather or sea conditions and from which there
is adequate time to return to available safe har-

(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1915.)
HISTORICAL AND REVISION NOTES

§ 5105. Load line surveys
(a) The Secretary may provide for annual, renewal, and other load line surveys.
(b) In conducting a load line survey, the Secretary shall consider whether—
(1) the hull and fittings of the vessel—
(A) are adequate to protect the vessel from
the sea; and
(B) meet other requirements the Secretary
may prescribe by regulation;
(2) the strength of the hull is adequate for
all loading conditions;
(3) the stability of the vessel is adequate for
all loading conditions;
(4) the topsides of the vessel are arranged
and constructed to allow rapid overboard
drainage of deck water in heavy weather; and
(5) the topsides of the vessel are adequate in
design, arrangement, and equipment to protect crewmembers performing outside tasks
necessary for safe operation of the vessel.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1916.)
HISTORICAL AND REVISION NOTES
Revised section 5105
Section 5105 authorizes the Secretary of Transportation to provide for load line surveys and requires that
while conducting a load line survey, the Secretary
must consider various strength, stability, design, and
construction features of the vessel.

§ 5106. Load line certificate
(a) On finding that a load line survey of a vessel under this chapter is satisfactory and that
the vessel’s load lines are marked correctly, the

§ 5107

TITLE 46—SHIPPING

Secretary shall issue the vessel a load line certificate and deliver it to the owner, master, or
individual in charge of the vessel.
(b) The certificate shall be maintained as required by the Secretary.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1916.)
HISTORICAL AND REVISION NOTES
Revised section 5106
Source: Section (U.S. Code) 46 App. U.S.C. 86c.
Section 5106(a) requires the Secretary to issue a load
line certificate upon finding that a vessel has received
a satisfactory load line survey and that the vessel’s
load line is marked correctly.
Section 5106(b) requires that the load line certificate
be maintained as required by the Secretary of Transportation. It is expected that the Secretary will require
in most cases that the certificate be carried on board
the vessel. However, certain types of vessels such as
barges do not have facilities for the carriage of certificates. In this case, this provision would give the Secretary the discretion to require that the certificates for
the barges be carried on the towing vessels.

§ 5107. Delegation of authority
(a) The Secretary shall delegate to the American Bureau of Shipping or other similarly
qualified organizations the authority to assign
load lines, survey vessels, determine that load
lines are marked correctly, and issue load line
certificates under this chapter.
(b) Under regulations prescribed by the Secretary, a decision of an organization delegated
authority under subsection (a) of this section related to the assignment of a load line may be appealed to the Secretary.
(c) For a vessel intended to be engaged on a
foreign voyage, the Secretary may delegate to
another country that is a party to the International Convention on Load Lines, 1966, the authority to assign load lines, survey vessels, determine that the load lines are marked correctly, and issue an International Load Line
Certificate (1966).
(d) The Secretary may terminate a delegation
made under this section after giving written notice to the organization.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1916.)
HISTORICAL AND REVISION NOTES
Revised section 5107
Source: Section (U.S. Code) 46 App. U.S.C. 86d, 88b.
Section 5107(a) requires the Secretary to delegate the
performance of various load line functions to the American Bureau of Shipping or other similarly qualified organizations. In providing for the delegation to a ‘‘similarly qualified organization,’’ the Committee expects
that the Secretary will ensure that that organization
complies with the same stringent standards and requirements for conducting business that apply to the
American Bureau of Shipping.
Section 5107(b) permits an appeal to the Secretary of
a decision by an organization that has received delegated authority. This ensures that the Secretary has
full oversight of the delegated load line functions.
Section 5107(c) permits the Secretary to delegate various load line functions to another country for vessels
that are engaged on a foreign voyage, provided that the
country is a party to the International Convention on
Load Lines, 1966.
Section 5107(d) clarifies the Secretary’s authority to
revoke a delegation at any time without cause. This

Page 96

authority is given so that no delay occurs administratively in revoking a delegation whenever the Secretary
decides a revocation is warranted.

§ 5108. Special exemptions
(a) The Secretary may exempt a vessel from
any part of this chapter when—
(1) the vessel is entitled to an exemption
under an international agreement to which
the United States Government is a party; or
(2) under regulations (including regulations
on special operations conditions) prescribed by
the Secretary, the Secretary finds that good
cause exists for granting an exemption.
(b) When the Secretary grants an exemption
under this section, the Secretary may issue a
certificate of exemption stating the extent of
the exemption.
(c) A certificate of exemption issued under
subsection (b) of this section shall be maintained as required by the Secretary.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1916.)
HISTORICAL AND REVISION NOTES
Revised section 5108
Source: Section (U.S. Code) 46 App. U.S.C. 86e, 88a.
Section 5108(a) authorizes the Secretary to exempt a
vessel from load line requirements if the vessel is entitled to an exemption under an international agreement
to which the United States is a party. It also provides
the Secretary with the new authority to exempt a vessel from load line requirements if the Secretary finds
that there is good reason for granting the exemption. A
specific exemption from load line requirements was authorized in Public Law 98–557 for barges operating close
to shore between Calumet Harbor, Illinois and Burns
Harbor, Indiana, because the geographic area and type
of operation in this case did not warrant a requirement
for load lines. Additional exemptions currently must be
made by an Act of Congress. Section 5108(a) authorizes
the Secretary to make such exemptions through regulation, and the Committee expects the Secretary to
continue the exemption under this provision for vessels
operating close to shore between Calumet Harbor, Illinois and Burns Harbor, Indiana.
Section 5108(b) authorizes the Secretary to issue a
certificate of exemption when an exemption is granted.
Section 5108(c) requires that the certificate of exemption be maintained as required by the Secretary in a
similar manner as under section 5106(b).

§ 5109. Reciprocity for foreign vessels
(a) When the Secretary finds that the laws and
regulations of a foreign country related to load
lines are similar to those of this chapter and the
regulations prescribed under this chapter, or
when a foreign country is a party to an international load line agreement to which the
United States Government is a party, the Secretary shall accept the load line marks and certificate of a vessel of that foreign country as
complying with this chapter and the regulations
prescribed under this chapter. The Secretary
may control the vessel as provided for in the applicable international agreement.
(b) Subsection (a) of this section does not
apply to a vessel of a foreign country that does
not recognize load lines assigned under this
chapter.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1917.)

Page 97

§ 5114

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

HISTORICAL AND REVISION NOTES

Revised section 5109
Source: Section (U.S. Code) 46 App. U.S.C. 86f, 88d.
Section 5109(a) requires the Secretary to accept the
load line mark and load line certificate of a vessel of a
foreign country if the Secretary finds that the load line
laws and regulations of that country are similar to
those of this chapter, or if that country is a party to
an international load line agreement to which the
United States is a party.

Revised section 5112
Source: Section (U.S. Code) 46 App. U.S.C. 86g, 88c,
88e.
Section 5112(a) prohibits a vessel from being loaded in
a manner that submerges its load line.
Section 5112(b) requires that whenever the loading or
stability conditions of a vessel change, the master or
individual in charge of the vessel must record in the official logbook the position of the load line and the draft
of the vessel.
Section 5112(c) is a new provision that provides that
a vessel may be operated only if the loading distribution, stability, and margin of strength are adequate for
the intended voyage or movement.
Section 5112(d) provides that subsections (a) and (b)
do not apply to a submersible vessel.

§ 5110. Submersible vessels
Notwithstanding sections 5103–5105 of this
title, the Secretary may prescribe regulations
for submersible vessels to provide a minimum
level of safety. In developing the regulations,
the Secretary shall consider factors relevant to
submersible vessels, including the structure,
stability, and watertight integrity of those vessels.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1917.)
HISTORICAL AND REVISION NOTES
Revised section 5110
Section 5110 authorizes the Secretary to prescribe
regulations for the marking of load lines of submersible
vessels. This general authority has been included in anticipation
of
the
commercial
development
of
submersibles.

§ 5111. Providing loading information
The Secretary may prescribe regulations requiring the owner, charterer, managing operator, and agent of a vessel to provide loading information (including information on loading distribution, stability, and margin of strength) to
the master or individual in charge of the vessel
in a language the master or individual understands.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1917.)
HISTORICAL AND REVISION NOTES
Section 5111 authorizes the Secretary to prescribe
regulations requiring that the master of a vessel be
provided with loading and stability information for the
vessel that the master understands.

§ 5112. Loading restrictions
(a) A vessel may not be loaded in a way that
submerges the assigned load line or the place at
which the load line is required to be marked on
the vessel.
(b) If the loading or stability conditions of a
vessel change, the master or individual in
charge of the vessel, before moving the vessel,
shall record in the official logbook or other permanent record of the vessel—
(1) the position of the assigned load line relative to the water surface; and
(2) the draft of the vessel fore and aft.
(c) A vessel may be operated only if the loading distribution, stability, and margin of
strength are adequate for the voyage or movement intended.
(d) Subsections (a) and (b) of this section do
not apply to a submersible vessel.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1917.)

§ 5113. Detention of vessels
(a) When the Secretary believes that a vessel
is about to leave a place in the United States in
violation of this chapter or a regulation prescribed under this chapter, the Secretary may
detain the vessel by giving notice to the owner,
charterer, managing operator, agent, master, or
individual in charge of the vessel.
(b) A detained vessel may be cleared under section 60105 of this title only after the violation
has been corrected. If the vessel was cleared before being detained, the clearance shall be withdrawn.
(c) Under regulations prescribed by the Secretary, the owner, charterer, managing operator, agent, master, or individual in charge of a
detained vessel may petition the Secretary to
review the detention order.
(d) After reviewing a petition, the Secretary
may affirm, withdraw, or change the detention
order. Before acting on the petition, the Secretary may require any independent survey that
may be necessary to determine the condition of
the vessel.
(e) The owner of a vessel is liable for the cost
incident to a petition for review and any required survey if the vessel is found to be in violation of this chapter or a regulation prescribed
under this chapter.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1918; Pub. L. 109–304, § 15(20), Oct. 6, 2006,
120 Stat. 1703.)
HISTORICAL AND REVISION NOTES
Revised section 5113
Source: Section (U.S. Code) 46 App. U.S.C. 86h, 88f.
Section 5113 authorizes the Secretary to detain a vessel if the Secretary believes that the vessel is in violation of the load line requirements, and describes the
process through which a vessel may be cleared. It also
states that a vessel owner is liable for certain costs resulting from a petition for review and load line survey
that is made pursuant to a violation of load line requirements.
AMENDMENTS
2006—Subsec. (b). Pub. L. 109–304 substituted ‘‘section
60105 of this title’’ for ‘‘section 4197 of the Revised Statutes (46 App. U.S.C. 91)’’.

§ 5114. Use of Customs Service officers and employees for enforcement
(a) With the approval of the Secretary of the
Treasury, the Secretary may use an officer or
employee of the United States Customs Service

[§ 5115

TITLE 46—SHIPPING

to enforce this chapter and the regulations prescribed under this chapter.
(b) The Secretary shall consult with the Secretary of the Treasury before prescribing a regulation that affects the enforcement responsibilities of an officer or employee of the Customs
Service.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1918; Pub. L. 101–595, title VI, § 603(4), Nov.
16, 1990, 104 Stat. 2993.)
HISTORICAL AND REVISION NOTES
Revised section 5114
Source: Section (U.S. Code) 46 App. U.S.C. 86
Section 5114(a) authorizes the Secretary to use a Customs Service officer or employee to enforce load line
requirements. The expected role of a Customs Service
officer or employee in this regard is to ensure that a
vessel is carrying a load line certificate and that the
load line is not submerged.
Section 5114(b) requires the Secretary to consult with
the Secretary of the Treasury before prescribing a regulation that affects the enforcement responsibilities of
a Customs Service officer or employee.
AMENDMENTS
1990—Pub. L. 101–595 substituted ‘‘officers and employees’’ for ‘‘officers employees’’ in section catchline.
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the
Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.

[§ 5115. Repealed. Pub. L. 101–595, title VI,
§ 603(5)(A), Nov. 16, 1990, 104 Stat. 2993]
Section, Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986,
100 Stat. 1918, authorized Secretary to prescribe regulations to carry out this chapter.

of the United States in violation of a detention
order issued under section 5113 of this title commits a class A misdemeanor.
(e) A person causing or allowing the alteration, concealment, or removal of a mark placed
on a vessel under section 5103(b) of this title and
the regulations prescribed under this chapter,
except to make a lawful change or to escape
enemy capture in time of war, commits a class
A misdemeanor.
(Pub. L. 99–509, title V, § 5101(2), Oct. 21, 1986, 100
Stat. 1918; Pub. L. 101–380, title IV, § 4302(d), Aug.
18, 1990, 104 Stat. 538.)
HISTORICAL AND REVISION NOTES
Revised section 5116
Source: Section (U.S. Code) 46 App. U.S.C. 86i, 88g.
Section 5116 provides penalties for violations of load
line requirements. The penalties are raised substantially from existing law to provide a sufficient deterrence against violations of the load line requirements
and to conform with the level of penalties throughout
the subtitle. The monetary penalties have not been
changed since the 1930’s.
Section 5116(a) raises from $1,000 to $5,000 the maximum penalty for violation of a load line provision
under this chapter or a regulation promulgated under
this chapter.
Section 5116(b) raises from $1,000 to $10,000 the maximum penalty for loading a vessel in such a way as to
submerge the load line. In addition, a violator must
pay up to two times the amount of the economic benefit of the overloading.
Section 5116(c) raises from $500 to $5,000 the maximum penalty for a violation of the requirement in section 5112(b) that the load line position and draft of a
vessel be noted in the logbook.
Section 5116(a)–(c) also states that the vessel is liable
in rem for the penalty.
Section 5116(d) raises from $1,000 to $10,000 the maximum penalty for a violation of a detention order and
may also include imprisonment for up to one year.
Section 5116(e) raises from $2,000 to $10,000 the maximum penalty for the alteration, removal, or concealment of a load line mark and may also include imprisonment for two years.
AMENDMENTS

§ 5116. Penalties
(a) Except as otherwise provided in this section, the owner, charterer, managing operator,
agent, master, and individual in charge of a vessel violating this chapter or a regulation prescribed under this chapter are each liable to the
United States Government for a civil penalty of
not more than $5,000. Each day of a continuing
violation is a separate violation. The vessel also
is liable in rem for the penalty.
(b) The owner, charterer, managing operator,
agent, master, and individual in charge of a vessel allowing, causing, attempting to cause, or
failing to take reasonable care to prevent a violation of section 5112(a) of this title are each liable to the Government for a civil penalty of not
more than $10,000 plus an additional amount
equal to twice the economic benefit of the overloading. The vessel also is liable in rem for the
penalty.
(c) The master or individual in charge of a vessel violating section 5112(b) of this title is liable
to the Government for a civil penalty of not
more than $5,000. The vessel also is liable in rem
for the penalty.
(d) A person causing or allowing the departure
of a vessel from a place within the jurisdiction

Page 98

1990—Subsec. (d). Pub. L. 101–380, § 4302(d)(1), substituted ‘‘commits a class A misdemeanor’’ for ‘‘shall
be fined not more than $10,000, imprisoned for not more
than one year, or both’’.
Subsec. (e). Pub. L. 101–380, § 4302(d)(2), substituted
‘‘commits a class A misdemeanor’’ for ‘‘shall be fined
not more than $10,000, imprisoned for not more than 2
years, or both’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

PART D—MARINE CASUALTIES
CHAPTER 61—REPORTING MARINE
CASUALTIES
Sec.

6101.
6102.
6103.
6104.

Marine casualties and reporting.
State marine casualty reporting system.
Penalty.
Commercial fishing industry vessel casualty
statistics.
HISTORICAL AND REVISION NOTES

Chapter 61 provides for the reporting of marine casualties and incidents involving all United States flag

Page 99

§ 6101

TITLE 46—SHIPPING

vessels occurring anywhere in the world and any foreign flag vessel operating on waters subject to the jurisdiction of the United States.
AMENDMENTS
1988—Pub. L. 100–424, § 4(c), Sept. 9, 1988, 102 Stat. 1591,
added item 6104.

§ 6101. Marine casualties and reporting
(a) The Secretary shall prescribe regulations
on the marine casualties to be reported and the
manner of reporting. The regulations shall require reporting the following marine casualties:
(1) death of an individual.
(2) serious injury to an individual.
(3) material loss of property.
(4) material damage affecting the seaworthiness or efficiency of the vessel.
(5) significant harm to the environment.
(b) A marine casualty shall be reported within
5 days as provided in this part and regulations
prescribed under this part. Each report filed
under this section shall include information as
to whether the use of alcohol contributed to the
casualty.
[(c) Repealed. Pub. L. 98–498, title II,
§ 212(b)(1)(B), Oct. 19, 1984, 98 Stat. 2306.]
(d)(1) This part applies to a foreign vessel
when involved in a marine casualty on the navigable waters of the United States.
(2) This part applies, to the extent consistent
with generally recognized principles of international law, to a foreign vessel constructed or
adapted to carry, or that carries, oil in bulk as
cargo or cargo residue involved in a marine casualty described under subsection (a)(4) or (5) in
waters subject to the jurisdiction of the United
States, including the Exclusive Economic Zone.
(e) A marine casualty not resulting in the
death of an individual shall be classified according to the gravity of the casualty, as prescribed
by regulation, giving consideration to the extent of injuries to individuals, the extent of
property damage, the dangers that the casualty
creates, and the size, occupation, and means of
propulsion of each vessel involved.
(f)(1) This chapter applies to a marine casualty
involving a United States citizen on a foreign
passenger vessel operating south of 75 degrees
north latitude, west of 35 degrees west longitude, and east of the International Date Line;
or operating in the area south of 60 degrees
south latitude that—
(A) embarks or disembarks passengers in the
United States; or
(B) transports passengers traveling under
any form of air and sea ticket package marketed in the United States.
(2) When there is a marine casualty described
in paragraph (1) of this subsection and an investigation is conducted, the Secretary shall ensure
that the investigation—
(A) is thorough and timely; and
(B) produces findings and recommendations
to improve safety on passenger vessels.
(3) When there is a marine casualty described
in paragraph (1) of this subsection, the Secretary may—
(A) seek a multinational investigation of the
casualty under auspices of the International
Maritime Organization; or

(B) conduct an investigation of the casualty
under chapter 63 of this title.
(g) To the extent consistent with generally
recognized practices and procedures of international law, this part applies to a foreign vessel involved in a marine casualty or incident, as
defined in the International Maritime Organization Code for the Investigation of Marine Casualties and Incidents, where the United States is
a Substantially Interested State and is, or has
the consent of, the Lead Investigating State
under the Code.
(h)(1) The Secretary shall publish all major
marine casualty reports prepared in accordance
with this section in an electronic form, and
shall provide information electronically regarding how other marine casualty reports can be
obtained.
(2) For purposes of this paragraph, the term
‘‘major marine casualty’’ means a casualty involving a vessel, other than a public vessel, that
results in—
(A) the loss of 6 or more lives;
(B) the loss of a mechanically propelled vessel of 100 or more gross tons;
(C) property damage initially estimated at
$500,000 or more; or
(D) serious threat, as determined by the
Commandant of the Coast Guard with concurrence by the Chairman of the National Transportation Safety Board, to life, property, or
the environment by hazardous materials.
(i) The Secretary shall, as soon as possible,
and no later than January 1, 2005, publish all
marine casualty reports prepared in accordance
with this section in an electronic form.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 536; Pub. L.
98–498, title II, § 212(b)(1), Oct. 19, 1984, 98 Stat.
2306; Pub. L. 98–557, § 7(b)(1), Oct. 30, 1984, 98 Stat.
2862; Pub. L. 101–380, title IV, § 4106(b), Aug. 18,
1990, 104 Stat. 513; Pub. L. 102–241, § 33, Dec. 19,
1991, 105 Stat. 2222; Pub. L. 107–295, title IV,
§§ 423, 442(a), Nov. 25, 2002, 116 Stat. 2125, 2132;
Pub. L. 109–241, title IX, § 901(o), July 11, 2006, 120
Stat. 565; Pub. L. 109–304, § 15(21), Oct. 6, 2006, 120
Stat. 1704; Pub. L. 110–181, div. C, title XXXV,
§ 3529(c)(1), Jan. 28, 2008, 122 Stat. 603.)
HISTORICAL AND REVISION NOTES
Revised section
6101 ..............................................

6101(b) .........................................

Source section (U.S. Code)
46:239
46:1486
33:361
33:365
33:362

Section 6101(a) requires the Secretary to prescribe
regulations on the types and manner of reporting of
marine casualties to be reported under subsection (b)
and incidents to be reported under subsection (c). The
casualties to be reported must include casualties involving death to an individual, serious injury to an individual, material loss of property, and any damage affecting the seaworthiness or efficiency of the vessel, in
addition to the other casualties (if any) the Secretary
feels should be reported.
Subsection (b) requires the owner, charterer, agent,
master, operator, or individual in charge of a vessel to
report within 5 days, any casualty required in subsection (a) or by regulation.
Subsection (c) requires the owner, charterer, managing operator, or agent of a U.S. vessel to immediately

§ 6102

TITLE 46—SHIPPING

determine the status of their vessel if they have not
heard from the vessel, if it has not passed a scheduled
point, or for any other reason which may indicate the
vessel may have been lost or imperiled. If the owner,
charterer, managing operator, or agent cannot reach
the vessel and determine that it is operating safely,
then they shall immediately notify the Coast Guard
and provide the Coast Guard with the name and number of the vessel, the names of individuals on board,
and any other information that the Coast Guard may
request. If communication with the vessel indicates the
vessel was involved in a casualty, then the owner, charterer, or agent of the vessel must immediately notify
the Coast Guard under subsection (b). Notification to
the Coast Guard does not impose or create any additional responsibility for the Coast Guard to take search
and rescue action beyond those already existing under
title 14, United States Code.
Subsection (d) makes it clear that the reporting requirements under subsection (b) are applicable to foreign vessels involved in a marine casualty when operating on the navigable waters of the United States,
whether in innocent passage or not.
Subsection (e) provides for the classification of marine casualties by regulation according to the gravity
of the casualty, injuries to individuals, property damage, dangers created, and size, occupation, and means
of propulsion of each vessel.
AMENDMENTS
2008—Subsecs. (g) to (i). Pub. L. 110–181 repealed Pub.
L. 109–304, § 15(21). See 2006 Amendment notes below.
2006—Subsecs. (g) to (i). Pub. L. 109–304, § 15(21), which
directed amendment identical to that made by Pub. L.
109–241, was repealed by Pub. L. 110–181. See Construction of 2006 Amendment note below.
Pub. L. 109–241 redesignated the second subsec. (g), relating to electronic publishing of marine casualty reports, and subsec. (h) as subsecs. (h) and (i), respectively.
2002—Subsecs. (e), (f). Pub. L. 107–295, § 423(1), redesignated subsec. (e), relating to passenger vessel investigations, as subsec. (f).
Subsec. (g). Pub. L. 107–295, § 442(a), added subsec. (g)
relating to electronic publishing of marine casualty reports.
Pub. L. 107–295, § 423(2), added subsec. (g) relating to
applicability of this part to a foreign vessel involved in
a marine casualty or incident.
Subsec. (h). Pub. L. 107–295, § 442(a), added subsec. (h).
1991—Subsec. (e). Pub. L. 102–241 added subsec. (e) relating to passenger vessel investigations.
1990—Subsec. (a)(5). Pub. L. 101–380, § 4106(b)(1), added
par. (5).
Subsec. (d). Pub. L. 101–380, § 4106(b)(2), designated existing provisions as par. (1) and added par. (2).
1984—Subsec. (a). Pub. L. 98–498, § 212(b)(1)(A), struck
out ‘‘and incidents’’ after ‘‘marine casualties’’ in provisions preceding par. (1).
Subsec. (b). Pub. L. 98–557 inserted provisions relating
to alcohol as a contributing factor to the casualty.
Subsec. (c). Pub. L. 98–498, § 212(b)(1)(B), struck out
subsec. (c) which related to determination of status of
a vessel that may be lost or imperiled and notification
of the Coast Guard.
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107–295, title IV, § 442(b), Nov. 25, 2002, 116
Stat. 2132, provided that: ‘‘The amendment made by
subsection (a) [amending this section] applies to all
marine casualty reports completed after the date of enactment of this Act [Nov. 25, 2002].’’

Page 100

EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–498 effective 180 days after
Oct. 1, 1984, see section 214 of Pub. L. 98–498, set out as
an Effective Date note under section 2306 of this title.
CONSTRUCTION OF 2006 AMENDMENT
Provisions of Pub. L. 109–304 repealed by section
3529(c)(1) of Pub. L. 110–181 to be treated as if never enacted, see section 3529(c)(2) of Pub. L. 110–181, set out as
a note under section 9504 of Title 26, Internal Revenue
Code.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 6102. State marine casualty reporting system
(a) The Secretary shall prescribe regulations
for a uniform State marine casualty reporting
system for vessels. Regulations shall prescribe
the casualties to be reported and the manner of
reporting. A State shall compile and submit to
the Secretary reports, information, and statistics on casualties reported to the State, including information and statistics concerning the
number of casualties in which the use of alcohol
contributed to the casualty.
(b) The Secretary shall collect, analyze, and
publish reports, information, and statistics on
marine casualties together with findings and
recommendations the Secretary considers appropriate. If a State marine casualty reporting
system provides that information derived from
casualty reports (except statistical information)
may not be publicly disclosed, or otherwise prohibits use by the State or any person in any action or proceeding against a person, the Secretary may use the information provided by the
State only in the same way that the State may
use the information.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 536; Pub. L.
98–557, § 7(b)(2), Oct. 30, 1984, 98 Stat. 2862.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

6102 ..............................................

46:1486

Section 6102(a) requires the Secretary to prescribe
regulations for a uniform State marine casualty reporting system for vessels. The Secretary may limit the
scope and types of casualties to be investigated and reported by the State. It also requires the State to submit to the Secretary reports, information, and statistics on casualties reported to the State.
Subsection (b) requires the Secretary to analyze the
information that is received from the State. It also prohibits the Secretary from disclosing the information,
proceeding against any person based on this information, or otherwise using the information, if the State
cannot use the information in the same way.

EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

AMENDMENTS
1984—Subsec. (a). Pub. L. 98–557 inserted provisions
relating to alcohol as a contributing factor to the casualty.

Page 101

§ 6301

TITLE 46—SHIPPING

PLAN TO INCREASE MARINE CASUALTY REPORTING
Pub. L. 104–324, title III, § 314(a), Oct. 19, 1996, 110 Stat.
3922, provided that: ‘‘Not later than one year after enactment of this Act [Oct. 19, 1996], the Secretary of
Transportation shall, in consultation with appropriate
State agencies, submit to the Committee on Resources
[now Committee on Natural Resources] of the House of
Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a plan to increase reporting of vessel accidents to appropriate
State law enforcement officials.’’

(d) The Secretary may delegate to a qualified
person that has knowledge and experience in the
collection of statistical insurance data the authority of the Secretary under this section to
compile statistics from insurers.
(Added Pub. L. 100–424, § 4(a), Sept. 9, 1988, 102
Stat. 1590.)
CHAPTER 63—INVESTIGATING MARINE
CASUALTIES
Sec.

§ 6103. Penalty
(a) An owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
failing to report a casualty as required under
section 6101 of this title or a regulation prescribed under section 6101 or 6102 is liable to the
United States Government for a civil penalty of
not more than $25,000.
(b) A person failing to comply with section
6104 of this title or a regulation prescribed under
that section is liable to the Government for a
civil penalty of not more than $5,000.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 536; Pub. L.
98–498, title II, § 212(b)(2), Oct. 19, 1984, 98 Stat.
2306; Pub. L. 100–424, § 4(b), Sept. 9, 1988, 102 Stat.
1590; Pub. L. 104–324, title III, §§ 306(a), 314(b),
Oct. 19, 1996, 110 Stat. 3918, 3922.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

6103 ..............................................

33:361
33:362

Section 6103 provides for a civil penalty of $1,000 for
any owner, charterer, managing operator, agent, master, or individual in charge of a vessel that fails to report a casualty required to be reported under subsection (b) of section 6101 or an incident required to be
reported under subsection (c) of section 6101.
AMENDMENTS
1996—Subsec. (a). Pub. L. 104–324 inserted ‘‘or 6102’’
before ‘‘is liable’’ and substituted ‘‘not more than
$25,000’’ for ‘‘$1,000’’.
1988—Pub. L. 100–424 designated existing provisions as
subsec. (a) and added subsec. (b).
1984—Pub. L. 98–498 struck out ‘‘or incident’’ after ‘‘a
casualty’’.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–498 effective 180 days after
Oct. 19, 1984, see section 214 of Pub. L. 98–498, set out as
an Effective Date note under section 2306 of this title.

§ 6104. Commercial fishing industry vessel casualty statistics
(a) The Secretary shall compile statistics concerning marine casualties from data compiled
from insurers of fishing vessels, fish processing
vessels, and fish tender vessels.
(b) A person underwriting primary insurance
for a fishing vessel, fish processing vessel, or
fish tender vessel shall submit periodically to
the Secretary data concerning marine casualties
that is required by regulations prescribed by the
Secretary.
(c) After consulting with the insurance industry, the Secretary shall prescribe regulations
under this section to gather a statistical base
for analyzing vessel risks.

6301.
6302.
6303.
6304.
6305.
6306.
6307.
6308.

Investigation of marine casualties.
Public investigations.
Rights of parties in interest.
Subpena authority.
Reports of investigations.
Penalty.
Notifications to Congress.
Information barred in legal proceedings.
HISTORICAL AND REVISION NOTES

Chapter 63 sets forth the scope and procedures for the
investigation of marine casualties and incidents that
are required to be reported by Chapter 61, as well as the
rights of parties involved in a casualty.
AMENDMENTS
1996—Pub. L. 104–324, title III, § 313(b), Oct. 19, 1996, 110
Stat. 3922, added item 6308.

§ 6301. Investigation of marine casualties
The Secretary shall prescribe regulations for
the immediate investigation of marine casualties under this part to decide, as closely as possible—
(1) the cause of the casualty, including the
cause of any death;
(2) whether an act of misconduct, incompetence, negligence, unskillfulness, or willful
violation of law committed by any individual
licensed, certificated, or documented under
part E of this subtitle has contributed to the
cause of the casualty, or to a death involved in
the casualty, so that appropriate remedial action under chapter 77 of this title may be
taken;
(3) whether an act of misconduct, incompetence, negligence, unskillfulness, or willful
violation of law committed by any person, including an officer, employee, or member of the
Coast Guard, contributed to the cause of the
casualty, or to a death involved in the casualty;
(4) whether there is evidence that an act subjecting the offender to a civil penalty under
the laws of the United States has been committed, so that appropriate action may be
undertaken to collect the penalty;
(5) whether there is evidence that a criminal
act under the laws of the United States has
been committed, so that the matter may be
referred to appropriate authorities for prosecution; and
(6) whether there is need for new laws or regulations, or amendment or repeal of existing
laws or regulations, to prevent the recurrence
of the casualty.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 537.)
HISTORICAL AND REVISION NOTES
Revised section
6301 ..............................................

Source section (U.S. Code)
46:239

§ 6302

TITLE 46—SHIPPING

Section 6301 requires the Secretary to prescribe regulations for the immediate investigation of marine casualties in order to determine, as closely as possible, the
cause of the casualty; whether the actions of individuals licensed, certificated, or documented have contributed to the cause of the casualty, whether the action of
an individual in the Coast Guard contributed to the
cause of the casualty, whether there is evidence that an
act subjecting the offender to civil or criminal penalty
has been committed, and whether there is a need for
new laws or to amend or repeal existing laws or regulations in order to prevent a recurrence of the casualty.
CONSTRUCTION
Pub. L. 98–89, § 2(h), Aug. 26, 1983, 97 Stat. 599, provided that: ‘‘Chapter 63 of title 46 (as enacted by section 1 of this Act) does not supersede section
304(a)(1)(E) of the Independent Safety Board Act of 1974
(49 App. U.S.C. 1903(a)(1)(E)) [see 49 U.S.C. 1131(a)(1)(E),
(b)].’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 6302. Public investigations
Each investigation conducted under this chapter and regulations prescribed under this chapter shall be open to the public, except when evidence affecting the national security is to be received.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 537.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

6302 ..............................................

..............................................

Section 6302 provides that each investigation conducted under this chapter shall be open to the public,
except when evidence affecting the national security of
the United States is to be received.

§ 6303. Rights of parties in interest
In an investigation conducted under this chapter, the following shall be allowed to be represented by counsel, to cross-examine witnesses,
and to call witnesses:
(1) an owner,
(2) any holder of a license or certificate of
registry,
(3) any holder of a merchant mariner’s document,
(4) any other person whose conduct is under
investigation, and
(5) any other party in interest.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 537.)
HISTORICAL AND REVISION NOTES
Revised section
6303 ..............................................

Source section (U.S. Code)
46:239(d)

Section 6303 provides for the rights of parties in interest to an investigation by allowing them to be represented by counsel, to cross examine witnesses, and to
call witnesses. This section merely states the rights of
a party in interest but does not necessarily determine

Page 102

who is to be considered a party in interest. Clause (4)
states that these rights are to be afforded to ‘‘any other
person whose conduct is under investigation’’ (emphasis added). This implies that clauses (1) through (3)
apply to individuals whose conduct is under investigation. If any individual does not qualify for these rights
under clauses (1) through (4), that individual can still
be entitled to these rights under clause (5), if designated as a party in interest. Since parties in interest
are not clearly set out by statute, the Secretary has
the authority to do this by regulation under section
6301. Thus the rights of these parties as presently provided for in existing law have been retained.

§ 6304. Subpena authority
(a) In an investigation under this chapter, the
attendance and testimony of witnesses, including parties in interest, and the production of
any evidence may be compelled by subpena. The
subpena authority granted by this section is coextensive with that of a district court of the
United States, in civil matters, for the district
in which the investigation is conducted.
(b) When a person fails to obey a subpena issued under this section, the district court of the
United States for the district in which the investigation is conducted or in which the person
failing to obey is found, shall on proper application issue an order directing that person to comply with the subpena. The court may punish as
contempt any disobedience of its order.
(c) A witness complying with a subpena issued
under this section may be paid for actual travel
and attendance at the rate provided for witnesses in the district courts of the United
States.
(d) An official designated to conduct an investigation under this part may issue subpenas as
provided in this section and administer oaths to
witnesses.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 538.)
HISTORICAL AND REVISION NOTES
Revised section
6304 ..............................................

Source section (U.S. Code)
46:239(e)
46:239(f)

Section 6304 provides an officer investigating a marine casualty with the necessary subpena authority to
require the attendance and testimony of witnesses and
the production of evidence. It also authorizes a district
court of the United States to direct compliance with a
subpena.

§ 6305. Reports of investigations
(a) The Secretary shall prescribe regulations
about the form and manner of reports of investigations conducted under this part.
(b) Reports of investigations conducted under
this part shall be made available to the public.
This subsection does not require the release of
information described by section 552(b) of title 5
or protected from disclosure by another law of
the United States.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 538; Pub. L.
105–383, title III, § 305, Nov. 13, 1998, 112 Stat.
3420.)
HISTORICAL AND REVISION NOTES
Revised section
6305 ..............................................

Source section (U.S. Code)
46:239(g)
46:239(k)

Page 103

§ 6308

TITLE 46—SHIPPING

Section 6305 requires the Secretary to prescribe regulations about the form and manner of reports of investigations of marine casualties. It also provides that the
reports shall be available to the public, except for any
information they contain related to national security.
AMENDMENTS
1998—Subsec. (b). Pub. L. 105–383 substituted ‘‘. This
subsection does not require the release of information
described by section 552(b) of title 5 or protected from
disclosure by another law of the United States.’’ for
‘‘, except to the extent that they contain information
related to the national security.’’

§ 6306. Penalty
A person attempting to coerce a witness, or to
induce a witness, to testify falsely in connection
with a marine casualty, or to induce a witness
to leave the jurisdiction of the United States,
shall be fined $5,000, imprisoned for one year, or
both.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 538.)
HISTORICAL AND REVISION NOTES
Revised section
6306 ..............................................

Source section (U.S. Code)
46:239(i)

Section 6306 provides for a $5,000 criminal penalty for
anyone attempting to coerce or to induce a witness to
a marine casualty investigation to testify falsely or to
leave the jurisdiction of the United States.

§ 6307. Notifications to Congress
(a) The Secretary shall notify the Committee
on Commerce, Science, and Transportation of
the Senate and the Committee on Transportation and Infrastructure of the House of Representatives of any hearing, before the hearing
occurs, investigating a major marine casualty
involving a death under section 6301 of this title.
(b) The Secretary shall submit to a committee
referred to in subsection (a) of this section information on a major marine casualty that is requested by that committee or the chairman of
the committee if the submission of that information is not prohibited by a law of the United
States.
(c) The Secretary shall submit annually to
Congress a summary of the marine casualties reported during the prior fiscal year, together
with a brief statement of action taken concerning those casualties.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 538; Pub. L.
107–295, title IV, § 408(c)(1), Nov. 25, 2002, 116 Stat.
2117.)
HISTORICAL AND REVISION NOTES
Revised section
6307 ..............................................

Source section (U.S. Code)
46:239(j)
33:366

Subsection (a) requires the Secretary to notify the
Merchant Marine and Fisheries Committee and the
Senate Commerce Committee in advance of any hearing concerning a major marine accident (as defined by
regulation) where there has been a loss of life.
Subsection (b) requires the Coast Guard to supply the
Merchant Marine and Fisheries Committee and the
Senate Commerce Committee with any requested marine casualty information, if its release is not specifically prohibited by law.
Subsection (c) requires the Secretary to submit an
annual report to Congress summarizing the marine cas-

ualties reported during the prior fiscal year, with a
brief statement of action taken concerning those casualties.
AMENDMENTS
2002—Subsec. (a). Pub. L. 107–295 substituted ‘‘Transportation and Infrastructure’’ for ‘‘Merchant Marine
and Fisheries’’.

§ 6308. Information barred in legal proceedings
(a) Notwithstanding any other provision of
law, no part of a report of a marine casualty investigation conducted under section 6301 of this
title, including findings of fact, opinions, recommendations, deliberations, or conclusions, shall
be admissible as evidence or subject to discovery
in any civil or administrative proceedings, other
than an administrative proceeding initiated by
the United States.
(b) Any member or employee of the Coast
Guard investigating a marine casualty pursuant
to section 6301 of this title shall not be subject
to deposition or other discovery, or otherwise
testify in such proceedings relevant to a marine
casualty investigation, without the permission
of the Secretary. The Secretary shall not withhold permission for such employee or member to
testify, either orally or upon written questions,
on solely factual matters at a time and place
and in a manner acceptable to the Secretary if
the information is not available elsewhere or is
not obtainable by other means.
(c) Nothing in this section prohibits the
United States from calling the employee or
member as an expert witness to testify on its behalf. Further, nothing in this section prohibits
the employee or member from being called as a
fact witness in any case in which the United
States is a party. If the employee or member is
called as an expert or fact witness, the applicable Federal Rules of Civil Procedure govern discovery. If the employee or member is called as
a witness, the report of a marine casualty investigation conducted under section 6301 of this
title shall not be admissible, as provided in subsections (a) and (b), and shall not be considered
the report of an expert under the Federal Rules
of Civil Procedure.
(d) The information referred to in subsections
(a), (b), and (c) of this section shall not be considered an admission of liability by the United
States or by any person referred to in those conclusions and statements.
(Added Pub. L. 104–324, title III, § 313(a), Oct. 19,
1996, 110 Stat. 3921; amended Pub. L. 109–241, title
IX, § 902(e)(2), formerly § 902(e)(2)–(4), July 11,
2006, 120 Stat. 567, renumbered § 902(e)(2) and
amended
Pub.
L.
111–281,
title
IX,
§ 903(a)(5)(B)–(7), Oct. 15, 2010, 124 Stat. 3010.)
REFERENCES IN TEXT
The Federal Rules of Civil Procedure, referred to in
subsec. (c), are set out in the Appendix to Title 28, Judiciary and Judicial Procedure.
AMENDMENTS
2010—Subsecs. (c), (d). Pub. L. 111–281 made technical
amendment to directory language of Pub. L. 109–241,
§ 902(e). See 2006 Amendment notes below.
2006—Subsec. (a). Pub. L. 109–241, § 902(e)(2)(B), added
subsec. (a) and struck out former subsec. (a) which read
as follows: ‘‘Notwithstanding any other provision of

§ 7101

TITLE 46—SHIPPING

law, no part of a report of a marine casualty investigation conducted under section 6301 of this title, including findings of fact, opinions, recommendations, deliberations, or conclusions, shall be admissible as evidence or subject to discovery in any civil or administrative proceedings, other than an administrative proceeding initiated by the United States. Any employee
of the Department of Transportation, and any member
of the Coast Guard, investigating a marine casualty
pursuant to section 6301 of this title, shall not be subject to deposition or other discovery, or otherwise testify in such proceedings relevant to a marine casualty
investigation, without the permission of the Secretary
of Transportation. The Secretary shall not withhold
permission for such employee or member to testify, either orally or upon written questions, on solely factual
matters at a time and place and in a manner acceptable
to the Secretary if the information is not available
elsewhere or is not obtainable by other means.’’
Subsec. (b). Pub. L. 109–241, § 902(e)(2)(B), added subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 109–241, § 902(e)(2)(A), (C), formerly
§ 902(e)(2)(A), (3), renumbered § 902(e)(2)(A), (C) and
amended Pub. L. 111–281, § 903(a)(5)(B), (C), (6), redesignated subsec. (b) as (c) and substituted ‘‘subsections (a)
and (b)’’ for ‘‘subsection (a)’’. Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 109–241, § 902(e)(2)(A), (D), formerly § 902(e)(2)(A), (4), renumbered § 902(e)(2)(A), (D)
and amended Pub. L. 111–281, § 903(a)(5)–(7), redesignated
subsec. (c) as (d) and substituted ‘‘subsections (a), (b),
and (c)’’ for ‘‘subsections (a) and (b)’’.
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–281, title IX, § 903(a), Oct. 15, 2010, 124 Stat.
3010, provided that the amendment by section
903(a)(5)(B)–(7), is effective with enactment of Pub. L.
109–241.

PART E—MERCHANT SEAMEN LICENSES,
CERTIFICATES, AND DOCUMENTS
HISTORICAL AND REVISION NOTES
Part E establishes the authority for the Coast Guard
to issue, suspend, and revoke licenses, certificates of
registry, and merchant mariner’s documents for individuals who are to be engaged on vessels of the United
States.
AMENDMENTS
1985—Pub. L. 99–36, § 1(a)(9)(B), May 15, 1985, 99 Stat.
67, substituted ‘‘Merchant Seamen Licenses, Certificates, and’’ for ‘‘Licenses, Certificates, and Merchant
Mariners’ ’’ in part E heading.

CHAPTER 71—LICENSES AND CERTIFICATES
OF REGISTRY
Sec.

7101.
7102.
7103.
7104.
7105.
7106.
7107.
7108.
7109.
7110.
7111.
7112.
7113.
7114.
7115.

Issuing and classifying licenses and certificates of registry.
Citizenship.
Licenses for radio officers.
Certificates for medical doctors and nurses.
Oaths.
Duration of licenses.
Duration of certificates of registry.
Termination of licenses and certificates of
registry.
Review of criminal records.
Exhibiting licenses.
Oral examinations for licenses.
Licenses of masters or mates as pilots.
Exemption from draft.
Fees.
Merchant Mariner Medical Advisory Committee.
AMENDMENTS

2010—Pub. L. 111–281, title II, § 210(c), Oct. 15, 2010, 124
Stat. 2914, added item 7115.

Page 104

1990—Pub. L. 101–380, title IV, § 4102(e)(2), Aug. 18,
1990, 104 Stat. 510, substituted ‘‘Review of criminal
records’’ for ‘‘Renewal of licenses’’ in item 7109.
1984—Pub. L. 98–364, title IV, § 402(8)(A), July 17, 1984,
98 Stat. 447, substituted ‘‘Oral examinations for licenses’’ for ‘‘Licenses for fishing vessels not subject to
inspection’’ in item 7111.

§ 7101. Issuing and classifying licenses and certificates of registry
(a) Licenses and certificates of registry are established for individuals who are required to
hold licenses or certificates under this subtitle.
(b) Under regulations prescribed by the Secretary, the Secretary—
(1) issues the licenses and certificates of registry; and
(2) may classify the licenses and certificates
of registry as provided in subsections (c) and
(f) of this section, based on—
(A) the tonnage, means of propulsion, and
horsepower of machine-propelled vessels;
(B) the waters on which vessels are to be
operated; or
(C) other reasonable standards.
(c) The Secretary may issue licenses in the following classes to applicants found qualified as
to age, character, habits of life, experience, professional qualifications, and physical fitness:
(1) masters, mates, and engineers.
(2) pilots.
(3) operators.
(4) radio officers.
(d) In classifying individuals under subsection
(c)(1) of this section, the Secretary shall establish, when possible, suitable career patterns and
service and other qualifying requirements appropriate to the particular service or industry in
which the individuals are engaged.
(e) An individual may be issued a license under
subsection (c)(2) of this section only if the applicant—
(1) is at least 21 years of age;
(2) is of sound health and has no physical
limitations that would hinder or prevent the
performance of a pilot’s duties;
(3) has a thorough physical examination
each year while holding the license, except
that this requirement does not apply to an individual who will serve as a pilot only on a
vessel of less than 1,600 gross tons as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302 of
this title as prescribed by the Secretary under
section 14104 of this title;
(4) demonstrates, to the satisfaction of the
Secretary, that the applicant has the requisite
general knowledge and skill to hold the license;
(5) demonstrates proficiency in the use of
electronic aids to navigation;
(6) maintains adequate knowledge of the waters to be navigated and knowledge of regulations for the prevention of collisions in those
waters;
(7) has sufficient experience, as decided by
the Secretary, to evidence ability to handle
any vessel of the type and size which the applicant may be authorized to pilot; and
(8) meets any other requirement the Secretary considers reasonable and necessary.

Page 105

§ 7103

TITLE 46—SHIPPING

(f) The Secretary may issue certificates of registry in the following classes to applicants found
qualified as to character, knowledge, skill, and
experience:
(1) pursers.
(2) medical doctors.
(3) professional nurses.
(g) The Secretary may not issue a license or
certificate of registry under this section unless
an individual applying for the license or certificate makes available to the Secretary, under
section 206(b)(7) of the National Driver Register
Act of 1982 (23 U.S.C. 401 note), any information
contained in the National Driver Register related to an offense described in section 205(a)(3)(A)
or (B) of that Act committed by the individual.
(h) The Secretary may review the criminal
record of an individual who applies for a license
or certificate of registry under this section.
(i) The Secretary shall require the testing of
an individual who applies for issuance or renewal of a license or certificate of registry
under this chapter for use of a dangerous drug in
violation of law or Federal regulation.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 539; Pub. L.
98–557, § 29(a), Oct. 30, 1984, 98 Stat. 2873; Pub. L.
101–380, title IV, § 4101(a), Aug. 18, 1990, 104 Stat.
509; Pub. L. 104–324, title VII, § 720, Oct. 19, 1996,
110 Stat. 3938.)
HISTORICAL AND REVISION NOTES
Revised section
7101 ..............................................

Source section (U.S. Code)
46:214
46:224
46:226
46:228
46:229
46:229a
46:229b
46:242
46:243
46:244
46:247

Section 7101(a) provides the authority for the establishment of licenses and certificates of registry for officers and individuals operating vessels who are required
to hold them under Subtitle II.
Subsection (b) authorizes the Secretary to issue licenses and certificates of registry based on tonnage,
means of propulsion, horsepower, vessel operating area,
and other reasonable standards.
Subsection (c) authorizes the Secretary to issue licenses to masters, mates, engineers, pilots, operators,
and radio officers when found qualified as to age, character, habits of life, experience, professional qualifications, and physical fitness. These qualifying standards
must by necessity be reasonable and related to the rigors of the profession.
Subsection (d) requires the Secretary to establish,
when possible, suitable career patterns and service for
and other qualifying requirements appropriate to the
particular service or industry for the individuals so engaged.
Subsection (e) sets forth the requirements that pilots
must meet before being issued a license.
Subsection (f) authorizes the Secretary to issue certificates of registry to qualified individuals as pursers,
medical doctors, and professional nurses.
REFERENCES IN TEXT
Sections 205(a)(3)(A) or (B) and 206(b)(7) of the National Driver Register Act of 1982, referred to in subsec.
(g), are sections 205(a)(3)(A), (B) and 206(b)(7) of Pub. L.
97–364, which are set out as a note under section 401 of
Title 23, Highways.

AMENDMENTS
1996—Subsec. (e)(3). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘1,600 gross tons’’.
1990—Subsecs. (g) to (i). Pub. L. 101–380 added subsecs.
(g) to (i).
1984—Subsec. (e)(3). Pub. L. 98–557 inserted exemption
for pilots on a vessel of less than 1,600 gross tons.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
PLAN FOR LICENSING OPERATORS OF FISHING INDUSTRY
VESSELS
Pub. L. 100–424, § 3, Sept. 9, 1988, 102 Stat. 1590, provided that: ‘‘The Secretary of the department in which
the Coast Guard is operating shall, within two years
after the date of enactment of this Act [Sept. 9, 1988],
and in close consultation with the Commercial Fishing
Industry Vessel Advisory Committee established under
section 4508 of title 46, United States Code (as amended
by this Act), prepare and submit to the Congress a plan
for the licensing of operators of documented fishing,
fish processing, and fish tender vessels. The plan shall
take into consideration the nature and variety of the
different United States fisheries and of the vessels engaged in those fisheries, the need to license all operators or only those working in certain types of fisheries
or vessels, and other relevant factors.’’

§ 7102. Citizenship
Licenses and certificates of registry for individuals on documented vessels may be issued
only to citizens of the United States.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 540.)
HISTORICAL AND REVISION NOTES
Revised section
7102 ..............................................

Source section (U.S. Code)
46:242
46:1132(a)

Section 7102 requires that any individual issued a license or certificate of registry allowing the individual
to be engaged on a documented vessel must be a U.S.
citizen.

§ 7103. Licenses for radio officers
(a) A license as radio officer may be issued
only to an applicant who has a first-class or second-class radiotelegraph operator license issued
by the Federal Communications Commission.
(b) Except as provided in section 7318 of this
title, this part does not affect the status of radiotelegraph operators serving on board vessels
operating only on the Great Lakes.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 540.)
HISTORICAL AND REVISION NOTES
Revised section
7103 ..............................................

Source section (U.S. Code)
46:229a
46:229b
46:229g

Section 7103 requires an applicant for a license as a
radio officer to have, as a prerequisite, a first-class or
second-class radiotelegraph operator license issued by
the Federal Communications Commission (FCC). It also
excepts radiotelegraph operators that are engaged on
Great Lakes vessels from the requirement of having to
obtain a radio officer’s license.

§ 7104

TITLE 46—SHIPPING

§ 7104. Certificates
nurses

for

medical

doctors

and

HISTORICAL AND REVISION NOTES
Revised section

A certificate of registry as a medical doctor or
professional nurse may be issued only to an applicant who has a license as a medical doctor or
registered nurse, respectively, issued by a State.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 540.)
HISTORICAL AND REVISION NOTES
Revised section

Page 106

Source section (U.S. Code)

7106 ..............................................

46:214(c)
46:225
46:226
46:228
46:229
46:229c

Section 7106 sets a 5 year time limit on the validity
of a license. It also requires a licensed radio officer to
be in continuous possession of an FCC license.

Source section (U.S. Code)

AMENDMENTS
7104 ..............................................

46:243

Section 7104 requires an applicant for a certificate of
registry as a medical doctor or professional nurse to
have, as a prerequisite, a license as a medical doctor or
registered nurse issued by a State.

§ 7105. Oaths
An applicant for a license or certificate of registry shall take, before the issuance of the license or certificate, an oath, without concealment or reservation, that the applicant will perform faithfully and honestly, according to the
best skill and judgment of the applicant, all the
duties required by law.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 540; Pub. L.
111–281, title VI, § 613, Oct. 15, 2010, 124 Stat.
2970.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7105 ..............................................

46:229e
46:231
46:244

Section 7105 requires all individuals who wish to be
issued a license or certificate of registry to take an
oath before a government official that they will perform all the duties required by law according to their
best skill and judgment.
AMENDMENTS
2010—Pub. L. 111–281 struck out ‘‘before a designated
official’’ after ‘‘an oath’’.

§ 7106. Duration of licenses
(a) IN GENERAL.—A license issued under this
part is valid for a 5-year period and may be renewed for additional 5-year periods; except that
the validity of a license issued to a radio officer
is conditioned on the continuous possession by
the holder of a first-class or second-class radiotelegraph operator license issued by the Federal
Communications Commission.
(b) ADVANCE RENEWALS.—A renewed license issued under this part may be issued up to 8
months in advance but is not effective until the
date that the previously issued license expires
or until the completion of any active suspension
or revocation of that previously issued merchant mariner’s document, whichever is later.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 540; Pub. L.
101–380, title IV, § 4102(a), Aug. 18, 1990, 104 Stat.
509; Pub. L. 111–281, title VI, § 614(b), Oct. 15, 2010,
124 Stat. 2970.)

2010—Pub. L. 111–281 amended section generally. Prior
to amendment, text read as follows: ‘‘A license issued
under this part is valid for 5 years and may be renewed
for additional 5-year periods. However, the validity of a
license issued to a radio officer is conditioned on the
continuous possession by the holder of a first-class or
second-class radiotelegraph operator license issued by
the Federal Communications Commission.’’
1990—Pub. L. 101–380 inserted ‘‘and may be renewed
for additional 5-year periods’’ after ‘‘for 5 years’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
TERMINATION OF
AND DOCUMENTS;

EXISTING LICENSES, CERTIFICATES,
APPLICABILITY OF 1990 AMENDMENT

Pub. L. 101–380, title IV, § 4102(d), Aug. 18, 1990, 104
Stat. 510, provided that: ‘‘A license, certificate of registry, or merchant mariner’s document issued before
the date of the enactment of this section [Aug. 18, 1990]
terminates on the day it would have expired if—
‘‘(1) subsections (a), (b), and (c) [amending this section and sections 7107 and 7302 of this title] were in
effect on the date it was issued; and
‘‘(2) it was renewed at the end of each 5-year period
under section 7106, 7107, or 7302 of title 46, United
States Code.’’

§ 7107. Duration of certificates of registry
(a) IN GENERAL.—A certificate of registry issued under this part is valid for a 5-year period
and may be renewed for additional 5-year periods; except that the validity of a certificate issued to a medical doctor or professional nurse is
conditioned on the continuous possession by the
holder of a license as a medical doctor or registered nurse, respectively, issued by a State.
(b) ADVANCE RENEWALS.—A renewed certificate of registry issued under this part may be issued up to 8 months in advance but is not effective until the date that the previously issued
certificate of registry expires or until the completion of any active suspension or revocation of
that previously issued merchant mariner’s document, whichever is later.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 540; Pub. L.
101–380, title IV, § 4102(b), Aug. 18, 1990, 104 Stat.
509; Pub. L. 111–281, title VI, § 614(c), Oct. 15, 2010,
124 Stat. 2971.)
HISTORICAL AND REVISION NOTES
Revised section
7107 ..............................................

Source section (U.S. Code)
46:243

Section 7107 specifies that there is no time limit on
the validity of a certificate of registry issued to a medical doctor or a professional nurse but is conditioned on

Page 107

§ 7112

TITLE 46—SHIPPING

the continuous possession of the appropriate license issued by a State.
AMENDMENTS
2010—Pub. L. 111–281 amended section generally. Prior
to amendment, text read as follows: ‘‘A certificate of
registry issued under this part is valid for 5 years and
may be renewed for additional 5-year periods. However,
the validity of a certificate issued to a medical doctor
or professional nurse is conditioned on the continuous
possession by the holder of a license as a medical doctor or registered nurse, respectively, issued by a
State.’’
1990—Pub. L. 101–380 substituted ‘‘is valid for 5 years
and may be renewed for additional 5-year periods’’ for
‘‘is not limited in duration’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
TERMINATION OF
AND DOCUMENTS;

EXISTING LICENSES, CERTIFICATES,
APPLICABILITY OF 1990 AMENDMENT

AMENDMENTS
1990—Pub. L. 101–380 substituted ‘‘Review of criminal
records’’ for ‘‘Renewal of licenses’’ in section catchline
and amended text generally. Prior to amendment, text
read as follows: ‘‘A license issued under this part may
be renewed for additional 5-year periods.’’
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 7110. Exhibiting licenses
Each holder of a license issued under this part
shall display, within 48 hours after employment
on a vessel for which that license is required,
the license in a conspicuous place on the vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 541.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7109 ..............................................

46:229f
46:232

For provisions that a certificate of registry issued before Aug. 18, 1990, terminates on the day it would have
expired if the amendment to this section by Pub. L.
101–380 were in effect on date it was issued and was renewed at the end of each 5-year period under this section, see section 4102(d) of Pub. L. 101–380, set out as a
note under section 7106 of this title.

Section 7110 requires licensed individuals to display
the license in a conspicuous place on the vessel within
48 hours after they are employed.

§ 7108. Termination of licenses and certificates of
registry

An individual may take an oral examination
for a license to serve on a fishing, fish processing, or fish tender vessel not required to be inspected under part B of this subtitle.

When the holder of a license or certificate of
registry, the duration of which is conditioned
under section 7106 or 7107 of this title, fails to
hold the license required as a condition, the license or certificate of registry issued under this
part is terminated.

§ 7111. Oral examinations for licenses

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 541; Pub. L.
98–364, title IV, § 402(8)(B), July 17, 1984, 98 Stat.
447; Pub. L. 99–307, § 1(10), May 19, 1986, 100 Stat.
445.)
HISTORICAL AND REVISION NOTES

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 540.)
Revised section

HISTORICAL AND REVISION NOTES
Revised section
7108 ..............................................

§ 7109. Review of criminal records
The Secretary may review the criminal record
of each holder of a license or certificate of registry issued under this part who applies for renewal of that license or certificate of registry.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 540; Pub. L.
101–380, title IV, § 4102(e)(1), Aug. 18, 1990, 104
Stat. 510.)
HISTORICAL AND REVISION NOTES

7109 ..............................................

46:224a(2)

Source section (U.S. Code)
46:229c
46:243

Section 7108 specifies if any individual issued a license or certificate of registry fails to have the required FCC or appropriate State medical license, the license or certificate is automatically terminated. The
suspension and revocation procedures provided in chapter 77 are not applicable in these cases.

Revised section

Source section (U.S. Code)

7109 ..............................................

Source section (U.S. Code)
46:225
46:233

Section 7109 authorizes the Secretary to renew licenses and certificates of registry for additional 5 year
periods.

Section 7111 provides for oral tests for licenses for individuals on fishing vessels that are not required to be
inspected under part B.
AMENDMENTS
1986—Pub. L. 99–307 substituted ‘‘part’’ for ‘‘Part’’.
1984—Pub. L. 98–364 substituted in section catchline
‘‘Oral examinations for licenses’’ for ‘‘Licenses for fishing vessels not subject to inspection’’ and in text ‘‘An
individual may take an oral examination for a license
to serve on a fishing, fish processing, or fish tender vessel not required to be inspected under Part B of this
subtitle’’ for ‘‘Examinations for licensing individuals
on fishing vessels not required to be inspected under
part B of this subtitle shall be oral’’.

§ 7112. Licenses of masters or mates as pilots
A master or mate licensed under this part who
also qualifies as a pilot is not required to hold 2
licenses. Instead, the qualification of the master
or mate as pilot shall be endorsed on the master’s or mate’s license.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 541.)
HISTORICAL AND REVISION NOTES
Revised section
7112 ..............................................

Source section (U.S. Code)
46:230

§ 7113

TITLE 46—SHIPPING

Section 7112 provides for the endorsement of a master’s or mate’s license as a pilot if they meet those
specifications. These individuals do not have to hold
two separate licenses.

§ 7113. Exemption from draft
A licensed master, mate, pilot, or engineer of
a vessel inspected under part B of this subtitle,
propelled by machinery or carrying hazardous
liquid cargoes in bulk, is not liable to draft in
time of war, except for performing duties authorized by the license. When performing those
duties in the service of the United States Government, the master, mate, pilot, or engineer is
entitled to the highest rate of wages paid in the
merchant marine of the United States for similar services. If killed or wounded when performing those duties, the master, mate, pilot, or engineer, or the heirs or legal representatives of
the master, mate, pilot, or engineer, are entitled
to all the privileges under the pension laws of
the United States provided to members of the
Armed Forces.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 541.)
HISTORICAL AND REVISION NOTES
Revised section
7113 ..............................................

Source section (U.S. Code)
46:225

Section 7113 exempts licensed masters, mates, pilots,
and engineers of inspected vessels that are propelled by
machinery or carrying hazardous liquid cargo from the
Selective Service draft in time of war.
This section also provides that, while serving in that
capacity during war, they shall be entitled to the highest rate of pay paid in the U.S. merchant marine for
similar services.
If a master, mate, pilot, or engineer is killed or
wounded when performing those duties during a war,
these individuals, their heirs or legal representatives,
are entitled to all the privileges provided to members
of the Armed Forces under the pension laws of the
United States.

§ 7114. Fees
The Secretary may prescribe by regulation
reasonable fees for the inspection of and the issuance of a certificate, license, or permit related
to small passenger vessels and sailing school
vessels.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 541.)
HISTORICAL AND REVISION NOTES
Revised section
7114 ..............................................

Source section (U.S. Code)
46:390a(b)

Section 7114 allows the Secretary to prescribe reasonable fees for the issuance of a certificate of inspection,
license, or registry, or permits related to small passenger vessels and sailing school vessels.

§ 7115. Merchant Mariner Medical Advisory Committee
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established a Merchant Mariner Medical Advisory Committee
(in this section referred to as the ‘‘Committee’’).
(2) FUNCTIONS.—The Committee shall advise
the Secretary on matters relating to—

Page 108

(A) medical certification determinations
for issuance of licences, certificates of registry, and merchant mariners’ documents;
(B) medical standards and guidelines for
the physical qualifications of operators of
commercial vessels;
(C) medical examiner education; and
(D) medical research.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Committee shall consist of 14 members, none of whom is a Federal
employee, and shall include—
(A) ten who are health-care professionals
with particular expertise, knowledge, or experience regarding the medical examinations of merchant mariners or occupational
medicine; and
(B) four who are professional mariners
with knowledge and experience in mariner
occupational requirements.
(2) STATUS OF MEMBERS.—Members of the
Committee shall not be considered Federal
employees or otherwise in the service or the
employment of the Federal Government, except that members shall be considered special
Government employees, as defined in section
202(a) of title 18, United States Code, and shall
be subject to any administrative standards of
conduct applicable to the employees of the department in which the Coast Guard is operating.
(c) APPOINTMENTS; TERMS; VACANCIES.—
(1) APPOINTMENTS.—The Secretary shall appoint the members of the Committee, and each
member shall serve at the pleasure of the Secretary.
(2) TERMS.—Each member shall be appointed
for a term of five years, except that, of the
members first appointed, three members shall
be appointed for a term of two years.
(3) VACANCIES.—Any member appointed to
fill the vacancy prior to the expiration of the
term for which that member’s predecessor was
appointed shall be appointed for the remainder
of that term.
(d) CHAIRMAN AND VICE CHAIRMAN.—The Secretary shall designate one member of the Committee as the Chairman and one member as the
Vice Chairman. The Vice Chairman shall act as
Chairman in the absence or incapacity of, or in
the event of a vacancy in the office of, the
Chairman.
(e) COMPENSATION; REIMBURSEMENT.—Members
of the Committee shall serve without compensation, except that, while engaged in the performance of duties away from their homes or regular
places of business of the member, the member of
the Committee may be allowed travel expenses,
including per diem in lieu of subsistence, as authorized by section 5703 of title 5.
(f) STAFF; SERVICES.—The Secretary shall furnish to the Committee the personnel and services as are considered necessary for the conduct
of its business.
(Added Pub. L. 111–281, title II, § 210(a), Oct. 15,
2010, 124 Stat. 2913.)
FIRST MEETING
Pub. L. 111–281, title II, § 210(b), Oct. 15, 2010, 124 Stat.
2914, provided that: ‘‘No later than six months after the

Page 109

date of enactment of this Act [Oct. 15, 2010], the Merchant Mariner Medical Advisory Committee established by the amendment made by this section [enacting this section] shall hold its first meeting.’’

CHAPTER 73—MERCHANT MARINERS’
DOCUMENTS
Sec.

7301.
7302.
7303.
7304.
7305.
7306.
7307.
7308.
7309.
7310.
7311.
7311a.
7312.
7313.
7314.
7315.
7316.
7317.
7318.
7319.

§ 7302

TITLE 46—SHIPPING

General.
Issuing merchant mariners’ documents and
continuous discharge books.
Possession and description of merchant mariners’ documents.
Citizenship notation on merchant mariners’
documents.
Oaths for holders of merchant mariners’ documents.
General requirements and classifications for
able seamen.
Able seamen—unlimited.
Able seamen—limited.
Able seamen—special.
Able seamen—offshore supply vessels.
Able seamen—sail.
Able seamen—fishing industry.
Scale of employment.
General requirements for members of engine
departments.
Service requirements for qualified members
of engine departments.
Training.
Lifeboatmen.
Tankermen.
Radiotelegraph operators on Great Lakes.
Records of merchant mariners’ documents.
HISTORICAL AND REVISION NOTES

Chapter 73 establishes the general requirements for
the issuance of a merchant mariners’ document to
those individuals who are required to have a document
prior to engagement or employment on certain vessels
of the United States.
AMENDMENTS
1984—Pub. L. 98–364, title IV, § 402(9)(A), July 17, 1984,
98 Stat. 448, added item 7311a.

§ 7301. General
(a) In this chapter—
(1) ‘‘service on deck’’ means service in the
deck department in work related to the work
usually performed on board vessels by able
seamen and may include service on fishing,
fish processing, fish tender vessels and on public vessels of the United States;
(2) 360 days is equal to one year’s service;
and
(3) a day is equal to 8 hours of labor or duty.
(b) The Secretary may prescribe regulations to
carry out this chapter.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 541; Pub. L.
98–364, title IV, § 402(9)(B), July 17, 1984, 98 Stat.
448.)
HISTORICAL AND REVISION NOTES
Revised section
7301 ..............................................

Source section (U.S. Code)
46:672(c)

Section 7301 defines ‘‘service on deck’’, ‘‘one year’s
service’’ and ‘‘day’’ with respect to the qualifying time
for the issuance of various types of endorsements as
able seamen. This section also provides the Secretary
with the authority to prescribe regulations to carry
out this chapter.

AMENDMENTS
1984—Subsec. (a)(1). Pub. L. 98–364 substituted ‘‘fishing, fish processing, fish tender vessels’’ for ‘‘decked
fishing vessels’’.

§ 7302. Issuing merchant mariners’ documents
and continuous discharge books
(a) The Secretary shall issue a merchant mariner’s document to an individual required to have
that document under part F of this subtitle if
the individual satisfies the requirements of this
part. The document serves as a certificate of
identification and as a certificate of service,
specifying each rating in which the holder is
qualified to serve on board vessels on which that
document is required under part F.
(b) The Secretary also may issue a continuous
discharge book to an individual issued a merchant mariner’s document if the individual requests.
(c) The Secretary may not issue a merchant
mariner’s document under this chapter unless
the individual applying for the document makes
available to the Secretary, under section
30305(b)(5) of title 49, any information contained
in the National Driver Register related to an offense described in section 30304(a)(3)(A) or (B) of
title 49 committed by the individual.
(d) The Secretary may review the criminal
record of an individual who applies for a merchant mariner’s document under this section.
(e) The Secretary shall require the testing of
an individual applying for issuance or renewal of
a merchant mariner’s document under this
chapter for the use of a dangerous drug in violation of law or Federal regulation.
(f) PERIODS OF VALIDITY AND RENEWAL OF MERCHANT MARINERS’ DOCUMENTS.—
(1) IN GENERAL.—Except as provided in subsection (g), a merchant mariner’s document issued under this chapter is valid for a 5-year
period and may be renewed for additional 5year periods.
(2) ADVANCE RENEWALS.—A renewed merchant mariner’s document may be issued
under this chapter up to 8 months in advance
but is not effective until the date that the previously issued merchant mariner’s document
expires or until the completion of any active
suspension or revocation of that previously issued merchant mariner’s document, whichever
is later.
(g)(1) The Secretary may, pending receipt and
review of information required under subsections (c) and (d), immediately issue an interim merchant mariner’s document valid for a
period not to exceed 120 days, to—
(A) an individual to be employed as gaming
personnel, entertainment personnel, wait
staff, or other service personnel on board a
passenger vessel not engaged in foreign service, with no duties, including emergency duties, related to the navigation of the vessel or
the safety of the vessel, its crew, cargo or passengers; or
(B) an individual seeking renewal of, or
qualifying for a supplemental endorsement to,
a valid merchant mariner’s document issued
under this section.

§ 7303

TITLE 46—SHIPPING

(2) No more than one interim document may
be issued to an individual under paragraph (1)(A)
of this subsection.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 542; Pub. L.
101–380, title IV, §§ 4101(b), 4102(c), Aug. 18, 1990,
104 Stat. 509; Pub. L. 107–295, title III, § 324(a),
Nov. 25, 2002, 116 Stat. 2104; Pub. L. 108–293, title
VI, § 609(1), Aug. 9, 2004, 118 Stat. 1058; Pub. L.
109–241, title IX, § 901(h)(1), (2), July 11, 2006, 120
Stat. 564; Pub. L. 111–281, title VI, § 614(a), Oct.
15, 2010, 124 Stat. 2970.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7302 ..............................................

46:239a(c)
46:643(a)
46:643(c)
46:672(i)

Section 7302(a) requires the Secretary to issue a merchant mariner’s document to qualified individuals required to have that document as a prerequisite to employment on certain vessels of the United States. The
purpose of the document is to serve as positive identification and to specify each rating in which the individual is qualified to serve on vessels.
Subsection (b) allows the Secretary to issue a continuous discharge book to an individual who requests a
book.
AMENDMENTS
2010—Subsec. (f). Pub. L. 111–281 amended subsec. (f)
generally. Prior to amendment, subsec. (f) read as follows: ‘‘Except as provided in subsection (g), a merchant
mariner’s document issued under this chapter is valid
for 5 years and may be renewed for additional 5-year periods.’’
2006—Subsec. (c). Pub. L. 109–241, § 901(h)(1), amended
directory language of Pub. L. 108–293, § 609(1). See 2004
Amendment note below.
Pub. L. 109–241, § 901(h)(2), inserted ‘‘section’’ before
‘‘30305(b)(5)’’ and before ‘‘30304(a)(3)(A)’’.
2004—Subsec. (c). Pub. L. 108–293, § 609(1), as amended
by Pub. L. 109–241, § 901(h)(1), substituted ‘‘30305(b)(5) of
title 49’’ for ‘‘section 206(b)(7) of the National Driver
Register Act of 1982 (23 U.S.C. 401 note)’’ and
‘‘30304(a)(3)(A) or (B) of title 49’’ for ‘‘section
205(a)(3)(A) or (B) of that Act’’.
2002—Subsec. (f). Pub. L. 107–295, § 324(a)(1), substituted ‘‘Except as provided in subsection (g), a’’ for
‘‘A’’.
Subsec. (g). Pub. L. 107–295, § 324(a)(2), added subsec.
(g).
1990—Subsecs. (c) to (e). Pub. L. 101–380, § 4101(b),
added subsecs. (c) to (e).
Subsec. (f). Pub. L. 101–380, § 4102(c), added subsec. (f).
EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109–241, title IX, § 901(h)(1), July 11, 2006, 120
Stat. 564, provided that the amendment made by section 901(h)(1) is effective Aug. 9, 2004.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
MERCHANT MARINERS’ DOCUMENTS PILOT PROGRAM
Pub. L. 108–293, title VI, § 611, Aug. 9, 2004, 118 Stat.
1058, provided that: ‘‘The Secretary of the department
in which the Coast Guard is operating may conduct a
pilot program to demonstrate methods to improve
processes and procedures for issuing merchant mariners’ documents.’’

Page 110

TERMINATION OF
AND DOCUMENTS;

EXISTING LICENSES, CERTIFICATES,
APPLICABILITY OF 1990 AMENDMENT

For provisions that a merchant mariner’s document
issued before Aug. 18, 1990, terminates on the day it
would have expired if the amendment to this section by
section 4102(c) of Pub. L. 101–380 were in effect on date
it was issued and was renewed at the end of each 5-year
period under this section, see section 4102(d) of Pub. L.
101–380, set out as a note under section 7106 of this title.

§ 7303. Possession and description of merchant
mariners’ documents
A merchant mariner’s document shall be retained by the seaman to whom issued. The document shall contain the signature, notations of
nationality, age, and physical description, the
photograph, and the home address of the seaman. In addition, the document shall specify the
rate or ratings in which the seaman is qualified
to serve.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 542; Pub. L.
107–295, title IV, § 421, Nov. 25, 2002, 116 Stat.
2125.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7303 ..............................................

46:643(a)

Section 7303 requires seamen to retain their merchant mariner’s documents. It also specifies the information that is to be contained in the document.
AMENDMENTS
2002—Pub. L. 107–295 struck out ‘‘the thumbprint,’’
after ‘‘photograph,’’.

§ 7304. Citizenship notation on merchant mariners’ documents
An individual applying for a merchant mariner’s document shall provide satisfactory proof
that the individual is a citizen of the United
States before that notation is made on the document.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 542.)
HISTORICAL AND REVISION NOTES
Revised section
7304 ..............................................

Source section (U.S. Code)
46:643(b)

Section 7304 specifies, that before a merchant mariner’s document is noted to specify that the individual
is a U.S. citizen, the individual must provide satisfactory proof that he is a citizen. This does not impose a
requirement of United States citizenship as a condition
for issuance of a document.

§ 7305. Oaths for holders of merchant mariners’
documents
An applicant for a merchant mariner’s document shall take, before issuance of the document, an oath that the applicant will perform
faithfully and honestly all the duties required
by law, and will carry out the lawful orders of
superior officers.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 542.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7305 ..............................................

..............................................

Page 111

§ 7309

TITLE 46—SHIPPING

The requirement for an oath, drawn from a clause
which had appeared in 46 U.S.C. 672(g), and administered by the Coast Guard to all applicants, was repealed in a 1980 amendment by section 4 of Public Law
96–378 (94 Stat. 1516). Since no specific comment was
made regarding the elimination in 1980 and the agency
has continued to administer an oath to all applicants,
this provision is being reinstated. The Committee believes the oath will contribute to the discipline and
order necessary in the merchant marine.

service on a vessel on any waters, is at least 3
years’ service on deck on board vessels operating at sea or on the Great Lakes.

§ 7306. General requirements and classifications
for able seamen

Section 7307 requires individuals to have at least 3
years service on deck on vessels operating at sea or on
the Great Lakes before their merchant mariner’s documents can be endorsed as able seamen—unlimited.

(a) To qualify for an endorsement as able seaman authorized by this section, an applicant
must provide satisfactory proof that the applicant—
(1) is at least 18 years of age;
(2) has the service required by the applicable
section of this part;
(3) is qualified professionally as demonstrated by an applicable examination or
educational requirements; and
(4) is qualified as to sight, hearing, and physical condition to perform the seaman’s duties.
(b) The classifications authorized for endorsement as able seaman are the following:
(1) able seaman—unlimited.
(2) able seaman—limited.
(3) able seaman—special.
(4) able seaman—offshore supply vessels.
(5) able seaman—sail.
(6) able seaman—fishing industry.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 542; Pub. L.
98–364, title IV, § 402(9)(C), July 17, 1984, 98 Stat.
448.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7306 ..............................................

46:672(b)

Section 7306(a) establishes the minimum requirements an individual must meet before being issued a
merchant mariner’s document endorsed for able seamen.
Subsection (b) establishes the classifications of able
seamen—unlimited, able seamen—limited, able seamen—special, able seamen—offshore supply vessels, and
able seamen—sail.
AMENDMENTS
1984—Subsec. (b)(6). Pub. L. 98–364 added par. (6).
EFFECTIVE DATE
Provisions of this section (related to able seaman—
sail) effective Apr. 15, 1984, see section 2(g)(1) of Pub. L.
98–89, set out as a note under section 3101 of this title.
ACCEPTANCE OF CERTAIN SERVICES TOWARD
ENDORSEMENT AS ABLE SEAMAN
Pub. L. 101–595, title VI, § 602(e)(3), Nov. 16, 1990, 104
Stat. 2992, provided that: ‘‘For the purposes of chapter
73 of title 46, United States Code, the Secretary of
Transportation shall accept the service used by an individual to qualify for an endorsement as able seaman—
fishing industry as qualifying service toward an endorsement as an able seaman—
‘‘(A) under sections 7307 and 7309 of that title; or
‘‘(B) if the service is on board a vessel of at least 100
gross tons, under section 7308 of that title.’’

§ 7307. Able seamen—unlimited
The required service for the endorsement of
able seaman—unlimited, qualified for unlimited

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 543.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7307 ..............................................

46:672(b)(1)

ACCEPTANCE OF CERTAIN SERVICES TOWARD
ENDORSEMENT AS ABLE SEAMAN
Service used to qualify for endorsement as able seaman—fishing industry to be accepted as qualifying
service toward an endorsement under this section, see
section 602(e)(3) of Pub. L. 101–595, set out as a note
under section 7306 of this title.

§ 7308. Able seamen—limited
The required service for the endorsement of
able seaman—limited, qualified for limited service on a vessel on any waters, is at least 18
months’ service on deck on board vessels of at
least 100 gross tons as measured under section
14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of
this title operating on the oceans or navigable
waters of the United States (including the Great
Lakes).
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 543; Pub. L.
104–324, title VII, § 721, Oct. 19, 1996, 110 Stat.
3938.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7308 ..............................................

46:672(b)(2)

Section 7308 establishes the minimum service requirements for an individual to qualify for an endorsement as able seamen—limited.
AMENDMENTS
1996—Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title’’ after
‘‘100 gross tons’’.
ACCEPTANCE OF CERTAIN SERVICES TOWARD
ENDORSEMENT AS ABLE SEAMAN
Service used to qualify for endorsement as able seaman—fishing industry to be accepted as qualifying
service toward an endorsement under this section, see
section 602(e)(3) of Pub. L. 101–595, set out as a note
under section 7306 of this title.

§ 7309. Able seamen—special
The required service for the endorsement of
able seaman—special, qualified for special service on a vessel on any waters, is at least 12
months’ service on deck on board vessels operating on the oceans or the navigable waters of the
United States (including the Great Lakes).
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 543.)

§ 7310

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7309 ..............................................

46:672(b)(3)

Section 7309 establishes the minimum service requirements for an individual to qualify as able seamen—special.
ACCEPTANCE OF CERTAIN SERVICES TOWARD
ENDORSEMENT AS ABLE SEAMAN
Service used to qualify for endorsement as able seaman—fishing industry to be accepted as qualifying
service toward an endorsement under this section, see
section 602(e)(3) of Pub. L. 101–595, set out as a note
under section 7306 of this title.

Page 112
EFFECTIVE DATE

Section effective Apr. 15, 1984, see section 2(g)(1) of
Pub. L. 98–89, set out as a note under section 3101 of
this title.

§ 7311a. Able seamen—fishing industry
For service on a fish processing vessel, an individual may be rated as able seaman—fishing industry if the individual has at least 6 months’
service on deck on board vessels operating on
the oceans or the navigable waters of the United
States (including the Great Lakes).
(Added Pub. L. 98–364, title IV, § 402(9)(D), July
17, 1984, 98 Stat. 448.)

§ 7310. Able seamen—offshore supply vessels

§ 7312. Scale of employment

For service on a vessel of less than 500 gross
tons as measured under section 14502 of this
title, or an alternate tonnage measured under
section 14302 of this title as prescribed by the
Secretary under section 14104 of this title engaged in support of exploration, exploitation, or
production of offshore mineral or energy resources, an individual may be rated as able seaman—offshore supply vessels if the individual
has at least 6 months’ service on deck on board
vessels operating on the oceans or the navigable
waters of the United States (including the Great
Lakes).

(a) Individuals qualified as able seamen—unlimited under section 7307 of this title may constitute all of the able seamen required on a vessel.
(b) Individuals qualified as able seamen—limited under section 7308 of this title may constitute all of the able seamen required on a vessel of less than 1,600 gross tons as measured
under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104 of this title or on a vessel operating
on the Great Lakes and the Saint Lawrence
River as far east as Sept Iles. Individuals qualified as able seamen—limited may constitute not
more than 50 percent of the number of able seamen required on board other vessels.
(c) Individuals qualified as able seamen—special under section 7309 of this title may constitute—
(1) all of the able seamen required on a vessel of not more than 500 gross tons as measured under section 14502 of this title, or an alternate tonnage measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title or on a seagoing barge or towing vessel; and
(2) not more than 50 percent of the number
of able seamen required on board other vessels.

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 543; Pub. L.
104–324, title VII, § 722, Oct. 19, 1996, 110 Stat.
3938.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7310 ..............................................

46:672(b)(3)

Section 7310 establishes the minimum service requirements for an individual to serve as able seamen—
offshore supply vessels on vessels of less than 500 gross
tons engaged in the exploration, exploitation, or production of offshore mineral or energy resources.
AMENDMENTS
1996—Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title’’ after
‘‘500 gross tons’’.

§ 7311. Able seamen—sail
For service on a sailing school vessel on any
waters, an individual may be rated as able seaman—sail if the individual has at least 6
months’ service on deck on sailing school vessels, oceanographic research vessels powered primarily by sail, or equivalent sailing vessels operating on the oceans or navigable waters of the
United States (including the Great Lakes).
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 543.)
HISTORICAL AND REVISION NOTES
Revised section
7311 ..............................................

Source section (U.S. Code)
46:672(b)(4)

Section 7311 establishes the minimum service requirements for an individual to qualify as able seamen—sail on board sailing vessels.

(d) Individuals qualified as able seamen—offshore. supply vessel under section 7310 of this
title may constitute all of the able seamen required on board a vessel of less than 500 gross
tons as measured under section 14502 of this title
or 6,000 gross tons as measured under section
14302 of this title engaged in support of exploration, exploitation, or production of offshore
mineral or energy resources. Individuals qualified as able seamen—limited under section 7308
of this title may constitute all of the able seamen required on board a vessel of at least 500
gross tons as measured under section 14502 of
this title or 6,000 gross tons as measured under
section as measured under section 14302 of this
title as prescribed by the Secretary under section 14104 of this title engaged in support of exploration, exploitation, or production of offshore
mineral or energy resources.
(e) When the service of able seamen—limited
or able seamen—special is authorized for only a
part of the required number of able seamen on
board a vessel, the combined percentage of those

Page 113

§ 7313

TITLE 46—SHIPPING

individuals so qualified may not be greater than
50 percent of the required number.
(f) Individuals qualified as able seamen—fishing industry under section 7311a of this title
may constitute—
(1) all of the able seamen required on a fish
processing vessel entered into service before
January 1, 1988, and of more than 1,600 gross
tons but not more than 5,000 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title; and
(2) all of the able seamen required on a fish
processing vessel entered into service after December 31, 1987, and having more than 16 individuals on board primarily employed in the
preparation of fish or fish products but of not
more than 5,000 gross tons as measured under
section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section
14104 of this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 543; Pub. L.
98–364, title IV, § 402(9)(E), July 17, 1984, 98 Stat.
448; Pub. L. 99–307, § 1(11), May 19, 1986, 100 Stat.
445; Pub. L. 104–324, title VII, § 723, Oct. 19, 1996,
110 Stat. 3938; Pub. L. 111–281, title VI, § 617(b),
Oct. 15, 2010, 124 Stat. 2973.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7312 ..............................................

46:672(f)

Section 7312(a) provides that able seamen—unlimited
may constitute all of the able seamen required on a
vessel.
Subsection (b) provides that able seamen—limited
may constitute 100 percent of the able seamen required
on board vessels of less than 600 gross tons operating on
the Great Lakes and 50 percent of the number of able
seamen required on the larger vessels.
Subsection (c) provides that able seamen—special
may constitute 100 percent of the able seamen required
on vessels not more than 500 gross tons, or a seagoing
barge or towing vessel. Able seamen—special may only
constitute up to 50 percent of the number of able seamen required on other vessels.
Subsection (d) provides that able seamen—offshore
supply vessels may constitute 100 percent of the number of able seamen required on vessels of less than 500
gross tons engaged in support of exploration, exploitation, or production of offshore mineral or energy facilities. They may not serve on board other vessels as
an able seaman until they have the appropriate required document.
Subsection (e) provides that the total number of able
seamen—limited or able seamen—special may not be
greater than 50 percent of the required number of able
seamen on a vessel.
AMENDMENTS
2010—Subsec. (d). Pub. L. 111–281 amended subsec. (d)
generally. Prior to amendment, subsec. (d) read as follows: ‘‘Individuals qualified as able seamen—offshore
supply vessels under section 7310 of this title may constitute all of the able seamen required on board a vessel
of less than 500 gross tons as measured under section
14502 of this title, or an alternate tonnage measured
under section 14302 of this title as prescribed by the
Secretary under section 14104 of this title engaged in
support of exploration, exploitation, or production of
offshore mineral or energy resources.’’
1996—Subsec. (b). Pub. L. 104–324, § 723(1), inserted ‘‘as
measured under section 14502 of this title, or an alter-

nate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘1,600 gross tons’’.
Subsec. (c)(1). Pub. L. 104–324, § 723(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘500 gross tons’’.
Subsec. (d). Pub. L. 104–324, § 723(3), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘500 gross tons’’.
Subsec. (f)(1). Pub. L. 104–324, § 723(4), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘5,000 gross tons’’.
Subsec. (f)(2). Pub. L. 104–324, § 723(5), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘5,000 gross tons’’.
1986—Subsec. (e). Pub. L. 99–307 substituted ‘‘able seamen—limited’’ for ‘‘able seaman—limited’’.
1984—Subsec. (f). Pub. L. 98–364 added subsec. (f).

§ 7313. General requirements for members of engine departments
(a) Classes of endorsement as qualified members of the engine department on vessels of at
least 100 gross tons as measured under section
14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of
this title (except vessels operating on rivers or
lakes (except the Great Lakes)) may be prescribed by regulation.
(b) The ratings of wiper and coal passer are
entry ratings and are not ratings as qualified
members of the engine department.
(c) An applicant for an endorsement as qualified member of the engine department must provide satisfactory proof that the applicant—
(1) has the service required by section 7314 of
this title;
(2) is qualified professionally as demonstrated by an applicable examination; and
(3) is qualified as to sight, hearing, and physical condition to perform the member’s duties.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 544; Pub. L.
104–324, title VII, § 724, Oct. 19, 1996, 110 Stat.
3939.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7313 ..............................................

46:672(g)

Section 7313(a) authorizes the Secretary to establish
classes of endorsement for qualified members of the engine department on vessels of 100 gross tons or more
(except on vessels operating on rivers and lakes (except
the Great Lakes)).
Subsection (b) establishes the entry ratings of wiper
and coal passer, but specifically excludes them as
qualified members of the engine department.
Subsection (c) establishes the minimum qualifications individuals must meet in order to have their documents endorsed as a qualified member of engine department.
AMENDMENTS
1996—Subsec. (a). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate

§ 7314

TITLE 46—SHIPPING

tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’.

§ 7314. Service requirements for qualified members of engine departments
To qualify for an endorsement as qualified
member of the engine department, an applicant
must provide proof that the applicant has 6
months’ service in the related entry rating as
described in section 7313(b) of this title.

Page 114

certificates or endorsements as tankerman,
stating the types of oil or hazardous material
that can be handled with safety to the vessel
and the marine environment.
(b) An endorsement as tankerman shall indicate the grades or types of cargo the holder is
qualified and authorized to handle with safety
on board vessels.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 545.)
HISTORICAL AND REVISION NOTES

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 544.)
Revised section

HISTORICAL AND REVISION NOTES
Revised section
7314 ..............................................

Source section (U.S. Code)

7317(a) .........................................

Source section (U.S. Code)
46:672(g)

Section 7314 requires individuals who wish to have
their documents endorsed as a qualified member of the
engine department must have at least 6 months service
as a wiper or coal passer.

§ 7315. Training
(a) Graduation from a nautical school vessel
approved under law and regulation may be substituted for the service requirements under section 7307 or 7314 of this title.
(b) The satisfactory completion of other
courses of instruction approved by the Secretary
may be substituted for not more than one-third
of the required service on deck at sea under sections 7307–7311 of this title.
(c) The satisfactory completion of other
courses of instruction approved by the Secretary
may be substituted for not more than one-half
of the required service at sea under section 7314
of this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 544.)

Section 7317(a) establishes the minimum standards an
individual must meet in order to qualify for an endorsement as tankerman for various types of oil or hazardous substances.
Subsection (b) specifies that the tankerman’s endorsement must specify the grades or types of cargo
the holder is qualified and allowed to handle.

§ 7318. Radiotelegraph operators on Great Lakes
(a) A radiotelegraph operator on the Great
Lakes only shall have a first-class or secondclass radiotelegraph operator’s license issued by
the Federal Communications Commission.
(b) An endorsement as radiotelegraph operator
on the Great Lakes only ends if the holder
ceases to hold the license issued by the Commission.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 545.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7318 ..............................................

HISTORICAL AND REVISION NOTES
Revised section
7315 ..............................................

46:391a(10)(C)

Source section (U.S. Code)
46:672(c)

Section 7315 specifies the training or course work
that may be substituted for service requirements for an
endorsement as an able seaman or a qualified member
of the engine department.

§ 7316. Lifeboatmen
To qualify for an endorsement as lifeboatman,
an applicant must provide satisfactory proof
that the applicant—
(1) has the service or training required by
regulation;
(2) is qualified professionally as demonstrated by examination; and
(3) is qualified professionally by actual demonstration.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 544.)

46:229c
46:229g
46:643(a)

Section 7318 specifies that radiotelegraph operators
on the Great Lakes shall have a first-class or secondclass radiotelegraph operator’s license issued by the
FCC and need not be licensed as a radio operator by the
Coast Guard. However, an endorsement as radio telegraph operator has to be noted on his merchant mariners’ document. If the holder ceases to have a valid
FCC license, then the endorsement is terminated automatically without recourse to suspension and revocation proceedings.

§ 7319. Records of merchant mariners’ documents
The Secretary shall maintain records on each
merchant mariner’s document issued, including
the name and address of the seaman to whom issued and the next of kin of the seaman.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 545; Pub. L.
108–293, title IV, § 403, Aug. 9, 2004, 118 Stat. 1043.)
HISTORICAL AND REVISION NOTES

HISTORICAL AND REVISION NOTES
Revised section
Revised section
7316 ..............................................

Source section (U.S. Code)

Source section (U.S. Code)

7319 ..............................................

46:643(f)

46:643(l)

Section 7316 establishes the minimum standards an
individual must meet in order to qualify for an endorsement as lifeboatman.

§ 7317. Tankermen
(a) The Secretary shall prescribe procedures,
standards, and qualifications for the issuance of

Section 7319 requires the Secretary to maintain
records on each merchant mariner’s document issued
and the seaman’s next of kin. However, these records
are not open for general or public inspection.
AMENDMENTS
2004—Pub. L. 108–293 struck out at end ‘‘The records
are not open to general or public inspection.’’

Page 115

CHAPTER 75—GENERAL PROCEDURES FOR
LICENSING, CERTIFICATION, AND DOCUMENTATION
Sec.

7501.
7502.
7503.
7504.
7505.
7506.
7507.

§ 7503

TITLE 46—SHIPPING

Duplicates.
Records.
Dangerous drugs as grounds for denial.
Travel and expense reimbursement.
Review of information in National Driver
Register.
Convention tonnage for licenses, certificates,
and documents.
Authority to extend the duration of licenses,
certificates of registry, and merchant mariner documents.

ulations may require that a vessel owner, managing operator, or employer shall make these
records available to the individual and the Coast
Guard on request.
(c) A person violating this section, or a regulation prescribed under this section, is liable to
the United States Government for a civil penalty of not more than $5,000.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 545; Pub. L.
101–380, title IV, § 4114(e), Aug. 18, 1990, 104 Stat.
517; Pub. L. 111–281, title VI, § 605, Oct. 15, 2010,
124 Stat. 2967.)
HISTORICAL AND REVISION NOTES

AMENDMENTS

Revised section

2010—Pub. L. 111–281, title VI, § 615(b), Oct. 15, 2010, 124
Stat. 2972, added item 7507.
1996—Pub. L. 104–324, title VII, § 745(b), Oct. 19, 1996,
110 Stat. 3943, added item 7506.
1990—Pub. L. 101–380, title IV, § 4105(c), Aug. 18, 1990,
104 Stat. 513, added item 7505.
1986—Pub. L. 99–640, § 10(b)(2)(B), Nov. 10, 1986, 100
Stat. 3550, added item 7504.

7502 ..............................................

§ 7501. Duplicates
(a) If a license, certificate of registry, or merchant mariner’s document issued under this part
is lost as a result of a marine casualty, the holder shall be supplied with a duplicate without
cost.
(b) For any other loss, the seaman may obtain
a duplicate on payment of reasonable costs prescribed by regulation by the Secretary.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 545; Pub. L.
99–36, § 1(a)(9)(C), May 15, 1985, 99 Stat. 68.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7501 ..............................................

46:643(h)

Section 7501(a) provides that if a license, certificate
or document issued to an individual is lost due to a marine casualty, the individual will be supplied with a duplicate without cost.
Subsection (b) provides that if a license, certificate
or document is lost for any reason other than a marine
casualty, the seaman must pay a reasonable cost for
the replacement.
AMENDMENTS
1985—Subsec. (a). Pub. L. 99–36 substituted ‘‘certificate of registry, or merchant mariner’s document’’ for
‘‘certificate, or document’’.

§ 7502. Records
(a) The Secretary shall maintain records, including electronic records, on the issuances, denials, suspensions, and revocations of licenses,
certificates of registry, merchant mariners’ documents, and endorsements on those licenses,
certificates, and documents.
(b) The Secretary may prescribe regulations
requiring a vessel owner or managing operator
of a commercial vessel, or the employer of a seaman on that vessel, to maintain records of each
individual engaged on the vessel subject to inspection under chapter 33 on matters of engagement, discharge, and service for not less than 5
years after the date of the completion of the
service of that individual on the vessel. The reg-

Source section (U.S. Code)
46:414
46:643(f)

Section 7502 requires the Secretary to maintain
records on the issuances, denials, suspensions, and revocations of licenses, certificates of registry, merchant
mariner’s documents, and endorsements.
AMENDMENTS
Pub. L. 111–281 designated existing provisions as subsec. (a), substituted ‘‘records, including electronic
records,’’ for ‘‘computerized records’’, and added subsecs. (b) and (c).
1990—Pub. L. 101–380 substituted ‘‘maintain computerized records’’ for ‘‘maintain records’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 7503. Dangerous drugs as grounds for denial
[(a) Repealed. Pub. L. 101–380, title IV,
§ 4103(a)(2)(B), Aug. 18, 1990, 104 Stat. 511.]
(b) A license, certificate of registry, or merchant mariner’s document authorized to be issued under this part may be denied to an individual who—
(1) within 10 years before applying for the license, certificate, or document, has been convicted of violating a dangerous drug law of the
United States or of a State; or
(2) when applying, has ever been a user of, or
addicted to, a dangerous drug unless the individual provides satisfactory proof that the individual is cured.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 545; Pub. L.
99–36, § 1(a)(9)(D), May 15, 1985, 99 Stat. 68; Pub.
L. 101–380, title IV, § 4103(a)(2)(B), Aug. 18, 1990,
104 Stat. 511.)
HISTORICAL AND REVISION NOTES
Revised section
7503(a) .........................................

Source section (U.S. Code)
46:239a(a)
46:239b(a)

Section 7503 provides that the issuance of a license,
certificate, or document may be denied by the Secretary to any individual who has been convicted, within 10 years, of violating a dangerous drug law of the
United States or to any individual who has been a user
of a dangerous drug, unless the individual provides satisfactory proof of being cured. This includes PCP and
LSD. See also the note to section 7704. However, the
Secretary may deny issuing a license, certificate or
document to the individual who has used or been con-

§ 7504

TITLE 46—SHIPPING

victed of a ‘‘controlled substance’’ such as LSD if that
use or conviction occurred before the date of enactment of this Act.
AMENDMENTS
1990—Subsec. (a). Pub. L. 101–380 repealed subsec. (a)
which defined ‘‘dangerous drug’’ for purpose of this section as narcotic drug, controlled substance, and marihuana.
1985—Subsec. (b). Pub. L. 99–36 substituted ‘‘certificate of registry, or merchant mariner’s document’’ for
first reference to ‘‘certificate, or document’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 7504. Travel and expense reimbursement
When a requirement to qualify for the issuance of, or endorsement on, a certificate, license, or document under this part is administered at a place at the request of an applicant or
an applicant’s representative, the applicant or
representative may reimburse the Secretary for
the travel and subsistence expenses incurred by
the personnel assigned to perform the administration of the requirement. Amounts received as
reimbursement under this section shall be credited to the appropriation for operating expenses
of the Coast Guard.
(Added Pub. L. 99–640, § 10(b)(2)(A), Nov. 10, 1986,
100 Stat. 3549.)
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 7505. Review of information in National Driver
Register
The Secretary shall make information received from the National Driver Register under
section 206(b)(7) of the National Driver Register
Act of 1982 (23 U.S.C. 401 note) available to an individual for review and written comment before
denying, suspending, revoking, or taking any
other action relating to a license, certificate of
registry, or merchant mariner’s document authorized to be issued for that individual under
this part, based on that information.
(Added Pub. L. 101–380, title IV, § 4105(b)(1), Aug.
18, 1990, 104 Stat. 512.)
EFFECTIVE DATE
Section applicable to incidents occurring after Aug.
18, 1990, see section 1020 of Pub. L. 101–380, set out as a
note under section 2701 of Title 33, Navigation and Navigable Waters.

§ 7506. Convention tonnage for licenses, certificates, and documents
Notwithstanding any provision of section
14302(c) or 14305 of this title, the Secretary
may—

Page 116

(1) evaluate the service of an individual who
is applying for a license, a certificate of registry, or a merchant mariner’s document by
using the tonnage as measured under chapter
143 of this title for the vessels on which that
service was acquired, and
(2) issue the license, certificate, or document
based on that service.
(Added Pub. L. 104–324, title VII, § 745(a), Oct. 19,
1996, 110 Stat. 3942.)
§ 7507. Authority to extend the duration of licenses, certificates of registry, and merchant
mariner documents
(a) LICENSES AND CERTIFICATES OF REGISTRY.—
Notwithstanding sections 7106 and 7107, the Secretary of the department in which the Coast
Guard is operating may—
(1) extend for not more than one year an expiring license or certificate of registry issued
for an individual under chapter 73 if the Secretary determines that the extension is required to enable the Coast Guard to eliminate
a backlog in processing applications for those
licenses or certificates of registry or in response to a national emergency or natural disaster, as deemed necessary by the Secretary;
or
(2) issue for not more than five years an expiring license or certificate of registry issued
for an individual under chapter 73 for the exclusive purpose of aligning the expiration date
of such license or certificate of registry with
the expiration date of a merchant mariner’s
document.
(b) MERCHANT MARINER DOCUMENTS.—Notwithstanding section 7302(g), the Secretary may—
(1) extend for not more than one year an expiring merchant mariner’s document issued
for an individual under chapter 73 if the Secretary determines that the extension is required to enable the Coast Guard to eliminate
a backlog in processing applications for those
licenses or certificates of registry or in response to a national emergency or natural disaster, as deemed necessary by the Secretary;
or
(2) issue for not more than five years an expiring merchant mariner’s document issued
for an individual under chapter 73 for the exclusive purpose of aligning the expiration date
of such merchant mariner’s document with
the expiration date of a merchant mariner’s
document.
(c) MANNER OF EXTENSION.—Any extensions
granted under this section may be granted to individual seamen or a specifically identified
group of seamen.
(Added Pub. L. 111–281, title VI, § 615(a), Oct. 15,
2010, 124 Stat. 2971.)
CHAPTER 77—SUSPENSION AND
REVOCATION
Sec.

7701.
7702.
7703.
7704.
7705.

General.
Administrative procedure.
Bases for suspension or revocation.
Dangerous drugs as grounds for revocation.
Subpenas and oaths.

Page 117
Sec.

7706.

§ 7702

TITLE 46—SHIPPING

Drug testing reporting.
AMENDMENTS

2004—Pub. L. 108–293, title IV, § 414(b), Aug. 9, 2004, 118
Stat. 1047, added item 7706.

§ 7701. General
(a) The purpose of suspension and revocation
proceedings is to promote safety at sea.
(b) Licenses, certificates of registry, and merchant mariners’ documents may be suspended or
revoked for acts described in section 7703 of this
title.
(c) When a license, certificate of registry, or
merchant mariner’s document has been revoked
under this chapter, the former holder may be issued a new license, certificate of registry, or
merchant mariner’s document only after—
(1) the Secretary decides, under regulations
prescribed by the Secretary, that the issuance
is compatible with the requirement of good
discipline and safety at sea; and
(2) the former holder provides satisfactory
proof that the bases for revocation are no
longer valid.
(d) The Secretary may prescribe regulations to
carry out this chapter.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 546; Pub. L.
101–380, title IV, § 4103(c), Aug. 18, 1990, 104 Stat.
511.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7701 ..............................................

46:239(g)

Section 7701 establishes the general purpose of suspension and revocation proceedings, which is to promote safety at sea. This section also provides the Secretary with the authority to suspend or revoke licenses, certificates, and documents, as well as the authority to issue a new license, certificate or document
to an individual when the issuance is compatible with
the requirements of good discipline and safety at sea. It
also provides for necessary regulatory authority to
carry out its purposes.
AMENDMENTS
1990—Subsec. (c). Pub. L. 101–380 amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: ‘‘When a license, certificate of registry, or merchant mariner’s document has been revoked under this
chapter, the former holder may be issued a new license,
certificate, or document only after it has been decided,
under regulations prescribed by the Secretary, that the
issuance is compatible with the requirements of good
discipline and safety at sea.’’
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 7702. Administrative procedure
(a) Sections 551–559 of title 5 apply to each
hearing under this chapter about suspending or
revoking a license, certificate of registry, or
merchant mariner’s document.
(b) The individual whose license, certificate of
registry, or merchant mariner’s document has
been suspended or revoked under this chapter

may appeal, within 30 days, the suspension or
revocation to the Secretary.
(c)(1) The Secretary shall request a holder of a
license, certificate of registry, or merchant
mariner’s document to make available to the
Secretary, under section 206(b)(4) of the National Driver Register Act of 1982 (23 U.S.C. 401
note),1 all information contained in the National
Driver Register related to an offense described
in section 205(a)(3)(A) or (B) of that Act committed by the individual.
(2) The Secretary shall require the testing of
the holder of a license, certificate of registry, or
merchant mariner’s document for use of alcohol
and dangerous drugs in violation of law or Federal regulation. The testing may include preemployment (with respect to dangerous drugs
only), periodic, random, and reasonable cause
testing, and shall include post-accident testing.
(d)(1) The Secretary may temporarily, for not
more than 45 days, suspend and take possession
of the license, certificate of registry, or merchant mariner’s document held by an individual
if—
(A) that individual performs a safety sensitive function on a vessel, as determined by
the Secretary; and
(B) there is probable cause to believe that
the individual—
(i) has, while acting under the authority of
that license, certificate, or document, performed the safety sensitive function in violation of law or Federal regulation regarding
use of alcohol or a dangerous drug;
(ii) has been convicted of an offense that
would prevent the issuance or renewal of the
license, certificate, or document;
(iii) within the 3-year period preceding the
initiation of a suspension proceeding, has
been convicted of an offense described in section 30304(a)(3)(A) or (B) of title 49; or
(iv) is a security risk that poses a threat
to the safety or security of a vessel or a public or commercial structure located within
or adjacent to the marine environment.
(2) If a license, certificate, or document is
temporarily suspended under this section, an expedited hearing under subsection (a) of this section shall be held within 30 days after the temporary suspension.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 546; Pub. L.
99–36, § 1(a)(3), May 15, 1985, 99 Stat. 67; Pub. L.
101–380, title IV, § 4103(a)(1), Aug. 18, 1990, 104
Stat. 510; Pub. L. 105–383, title III, § 304(a), Nov.
13, 1998, 112 Stat. 3419; Pub. L. 108–293, title IV,
§ 407, title VI, § 609(2), Aug. 9, 2004, 118 Stat. 1044,
1058.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

7702 ..............................................

..............................................

Section 7702(a) provides that Sections 551–559 of title
5 of the United States Code shall apply to each involving the suspension or revocation of a license, certificate, or document.
Subsection (b) allows an individual whose license,
certificate, or document has been suspended or revoked
to appeal it to the Secretary within 30 days.
1 See

References in Text note below.

§ 7703

TITLE 46—SHIPPING
REFERENCES IN TEXT

Sections 205(a)(3)(A) or (B) and 206(b)(4) of the National Driver Register Act of 1982, referred to in subsec.
(c)(1), are sections 205(a)(3)(A), (B) and 206(b)(4) of Pub.
L. 97–364, which were set out in a note under section 401
of Title 23, Highways, and were repealed and restated in
sections 30304 and 30305 of Title 49, Transportation, by
Pub. L. 103–272, §§ 1(e), 7(b), July 5, 1994, 108 Stat. 862,
1379.
AMENDMENTS
2004—Subsec. (d)(1). Pub. L. 108–293, § 407(1), substituted ‘‘if—’’ for ‘‘if, when acting under the authority
of that license, certificate, or document—’’ in introductory provisions.
Subsec.(d)(1)(B)(i). Pub. L. 108–293, § 407(2), inserted
‘‘, while acting under the authority of that license, certificate, or document,’’ after ‘‘has’’.
Subsec. (d)(1)(B)(iii). Pub. L. 108–293, § 609(2), substituted ‘‘section 30304(a)(3)(A) or (B) of title 49’’ for
‘‘section 205(a)(3)(A) or (B) of the National Driver Register Act of 1982’’.
Subsec. (d)(1)(B)(iv). Pub. L. 108–293, § 407(3)–(5), added
cl. (iv).
1998—Subsec. (c)(2). Pub. L. 105–383 inserted second
sentence and struck out former second sentence which
read as follows: ‘‘The testing may include preemployment (with respect to dangerous drugs only), periodic,
random, reasonable cause, and post accident testing.’’
1990—Subsecs. (c), (d). Pub. L. 101–380 added subsecs.
(c) and (d).
1985—Subsec. (a). Pub. L. 99–36 substituted ‘‘mariner’s’’ for ‘‘mariners’ ’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 7703. Bases for suspension or revocation
A license, certificate of registry, or merchant
mariner’s document issued by the Secretary
may be suspended or revoked if the holder—
(1) when acting under the authority of that
license, certificate, or document—
(A) has violated or fails to comply with
this subtitle, a regulation prescribed under
this subtitle, or any other law or regulation
intended to promote marine safety or to protect navigable waters; or
(B) has committed an act of misconduct or
negligence;
(2) is convicted of an offense that would prevent the issuance or renewal of a license, certificate of registry, or merchant mariner’s
document;
(3) within the 3-year period preceding the
initiation of the suspension or revocation proceeding is convicted of an offense described in
section 30304(a)(3)(A) or (B) of title 49;
(4) has committed an act of incompetence relating to the operation of a vessel; or
(5) is a security risk that poses a threat to
the safety or security of a vessel or a public or
commercial structure located within or adjacent to the marine environment.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 546; Pub. L.
99–36, § 1(a)(9)(E), May 15, 1985, 99 Stat. 68; Pub.
L. 101–380, title IV, § 4103(b), Aug. 18, 1990, 104
Stat. 511; Pub. L. 108–293, title IV, § 408, title VI,
§ 609(3), Aug. 9, 2004, 118 Stat. 1044, 1058; Pub. L.
109–241, title IX, § 901(h)(3), July 11, 2006, 120 Stat.
564.)

Page 118
HISTORICAL AND REVISION NOTES

Revised section

Source section (U.S. Code)

7703 ..............................................

46:226
46:239
46:240
46:246(c)

This section provides the bases for suspension and
revocation of a license, certificate or document. The individual must have been operating under the authority
of the required license, certificate, or document and
has violated a law or regulation intended to promote
marine safety or to protect the navigable waters or has
committed an act of incompetence, misconduct, or negligence.
AMENDMENTS
2006—Par. (3). Pub. L. 109–241 struck out ‘‘(23 U.S.C.
401 note)’’ after ‘‘of title 49’’.
2004—Par. (1)(B). Pub. L. 108–293, § 408(1), substituted
‘‘misconduct or’’ for ‘‘incompetence, misconduct, or’’.
Par. (3). Pub. L. 108–293, § 609(3), substituted ‘‘section
30304(a)(3)(A) or (B) of title 49’’ for ‘‘section 205(a)(3)(A)
or (B) of the National Driver Register Act of 1982’’.
Pars. (4), (5). Pub. L. 108–293, § 408(2)–(4), added pars.
(4) and (5).
1990—Pub. L. 101–380 amended section generally. Prior
to amendment, section read as follows: ‘‘A license, certificate of registry, or merchant mariner’s document
issued by the Secretary may be suspended or revoked
if, when acting under the authority of that license, certificate, or document, the holder—
‘‘(1) has violated or failed to comply with this subtitle, a regulation prescribed under this subtitle, or
any other law or regulation intended to promote marine safety or to protect navigable waters.
‘‘(2) has committed an act of incompetence, misconduct, or negligence.’’
1985—Pub. L. 99–36 substituted ‘‘certificate of registry,’’ for first reference to ‘‘certificate,’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 7704. Dangerous drugs as grounds for revocation
[(a) Repealed. Pub. L. 101–380, title IV,
§ 4103(a)(2)(B), Aug. 18, 1990, 104 Stat. 511.]
(b) If it is shown at a hearing under this chapter that a holder of a license, certificate of registry, or merchant mariner’s document issued
under this part, within 10 years before the beginning of the proceedings, has been convicted of
violating a dangerous drug law of the United
States or of a State, the license, certificate, or
document shall be suspended or revoked.
(c) If it is shown that a holder has been a user
of, or addicted to, a dangerous drug, the license,
certificate of registry, or merchant mariner’s
document shall be revoked unless the holder
provides satisfactory proof that the holder is
cured.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 546; Pub. L.
99–36, § 1(a)(9)(F), (G), May 15, 1985, 99 Stat. 68;
Pub. L. 101–380, title IV, § 4103(a)(2)(B), Aug. 18,
1990, 104 Stat. 511; Pub. L. 108–293, title IV, § 402,
Aug. 9, 2004, 118 Stat. 1043.)
HISTORICAL AND REVISION NOTES
Revised section
7704(a) .........................................

Source section (U.S. Code)
46:239a(a)

Page 119

§ 7706

TITLE 46—SHIPPING

HISTORICAL AND REVISION NOTES—CONTINUED
Revised section

Source section (U.S. Code)

7704(b) .........................................
7704(c) .........................................

46:239b(b)(1)
46:239b(b)(2)

Section 7704 requires the Secretary to revoke the license, certificate, or document of any individual who
has been convicted of a dangerous drug law within 10
years before the beginning of the suspension or revocation procedures. This section has expanded current law
to incorporate violations involving ‘‘controlled substances’’ which are not narcotic. This includes PCP and
LSD. Unless it can be done under existing law, the suspension or revocation of an individual’s license based
on the use of a ‘‘controlled substance’’ only applies to
the use or conviction after the date of enactment of
this Act.
This section also provides that anyone who has been
a user of or addicted to a dangerous drug since July 14,
1954, may be subjected to revocation procedures unless
the individual provides satisfactory proof of being
cured.
In sections 7503(b)(2) and 7704(c), the term ‘‘use’’,
when applying to ‘‘narcotic drugs’’ or ‘‘controlled substances’’, is not intended to include the use of ‘‘off the
shelf’’ drugs or drugs acquired with a prescription lawfully issued by a medical doctor, as long as the drugs
are used by the individual in the recommended
amounts and the drugs will not impair the individual’s
ability to perform duties.
AMENDMENTS
2004—Subsec. (b). Pub. L. 108–293 inserted ‘‘suspended
or’’ after ‘‘shall be’’.
1990—Subsec. (a). Pub. L. 101–380 struck out subsec.
(a) which defined ‘‘dangerous drug’’ for purpose of this
section as narcotic drug, controlled substance, and
marihuana.
1985—Subsec. (b). Pub. L. 99–36, § 1(a)(9)(F), substituted ‘‘merchant mariner’s document’’ for first reference to ‘‘document’’.
Subsec. (c). Pub. L. 99–36, § 1(a)(9)(G), substituted
‘‘certificate of registry, or merchant mariner’s document’’ for ‘‘certificate, or document’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 7705. Subpenas and oaths
(a) An official designated to investigate or preside at a hearing on matters that are grounds
for suspension or revocation of licenses, certificates of registry, and merchant mariners’ documents may administer oaths and issue subpenas
to compel the attendance and testimony of witnesses and the production of records or other
evidence during investigations and at hearings.
(b) The jurisdictional limits of a subpena issued under this section are the same as, and are
enforceable in the same manner as, subpenas issued under chapter 63 of this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 547; Pub. L.
99–36, § 1(a)(9)(H), May 15, 1985, 99 Stat. 68.)

AMENDMENTS
1985—Subsec. (a). Pub. L. 99–36 substituted ‘‘certificates of registry, and merchant mariners’ documents’’
for ‘‘certificates, and documents’’.

§ 7706. Drug testing reporting
(a) RELEASE OF DRUG TEST RESULTS TO COAST
GUARD.—Not later than 2 weeks after receiving
from a Medical Review Officer a report of a verified positive drug test or verified test violation
by a civilian employee of a Federal agency, an
officer in the Public Health Services, or an officer in the National Oceanic and Atmospheric
Administration Commissioned Officer Corps,
who is employed in any capacity on board a vessel operated by the agency, the head of the agency shall release to the Commandant of the Coast
Guard the report.
(b) STANDARDS, PROCEDURES, AND REGULATIONS.—The head of a Federal agency shall carry
out a release under subsection (a) in accordance
with the standards, procedures, and regulations
applicable to the disclosure and reporting to the
Coast Guard of drug tests results and drug test
records of individuals employed on vessels documented under the laws of the United States.
(c) WAIVER.—Notwithstanding section 503(e) of
the Supplemental Appropriations Act, 1987 (5
U.S.C. 7301 note), the report of a drug test of an
employee may be released under this section
without the prior written consent of the employee.
(Added Pub. L. 108–293, title IV, § 414(a), Aug. 9,
2004, 118 Stat. 1046.)
REFERENCES IN TEXT
Section 503(e) of the Supplemental Appropriations
Act, 1987, referred to in subsec. (c), is section 503(e) of
Pub. L. 100–71, which is set out as a note under section
7301 of Title 5, Government Organization and Employees.

PART F—MANNING OF VESSELS
HISTORICAL AND REVISION NOTES
Part F provides for the manning of vessels including
requirements generally for the number of individuals
required, qualifications and conditions of employment,
and duties; for masters and other licenses and registered individuals; for pilots; for unlicensed personnel;
for small vessels; for tank vessels; and for pilotage on
the Great Lakes. The Committee intends that all manning provisions throughout this subtitle will be interpreted to be consistent with one another.

CHAPTER 81—GENERAL
Sec.

8101.
8102.
8103.
8104.
8105.
8106.
8107.

Complement of inspected vessels.
Watchmen.
Citizenship and Navy Reserve requirements.
Watches.
Fishing vessel exemption.
Riding gangs.
Use of force against piracy.

HISTORICAL AND REVISION NOTES
HISTORICAL AND REVISION NOTES
Revised section
7705 ..............................................

Source section (U.S. Code)
46:239(e)

Section 7705 allows officials designated to investigate
or preside at hearings on matters that are grounds for
suspension and revocation proceedings to administer
oaths and issue subpenas.

Chapter 81 provides for the composition, citizenship,
working hours, and other limitations affecting the
complement of licensed individuals and crew on certain
vessels, a safety watch onboard passenger vessels,
membership in the Naval Reserve for certain deck and
engineer officers, and penalties for violating, and regulatory authority for implementing its provisions.

§ 8101

TITLE 46—SHIPPING
AMENDMENTS

2010—Pub. L. 111–281, title IX, §§ 903(c)(1), 912(b), Oct.
15, 2010, 124 Stat. 3011, 3017, inserted period at end of
item 8106 and added item 8107.
2006—Pub. L. 109–241, title III, § 312(d), July 11, 2006,
120 Stat. 534, added item 8106.
Pub. L. 109–163, div. A, title V, § 515(f)(3)(C), Jan. 6,
2006, 119 Stat. 3236, substituted ‘‘Citizenship and Navy
Reserve requirements’’ for ‘‘Citizenship and Naval Reserve requirements’’ in item 8103.
1996—Pub. L. 104–324, title XI, § 1146(b), Oct. 19, 1996,
110 Stat. 3993, added item 8105.
1990—Pub. L. 101–595, title VI, § 603(7)(B), Nov. 16, 1990,
104 Stat. 2993, struck out item 8105 ‘‘Regulations’’.

§ 8101. Complement of inspected vessels
(a) The certificate of inspection issued to a
vessel under part B of this subtitle shall state
the complement of licensed individuals and crew
(including lifeboatmen) considered by the Secretary to be necessary for safe operation. A
manning requirement imposed on—
(1) a sailing school vessel shall consider the
participation of sailing school instructors and
sailing school students in the operation of
that vessel;
(2) a mobile offshore drilling unit shall consider the specialized nature of the unit; and
(3) a tank vessel shall consider the navigation, cargo handling, and maintenance functions of that vessel for protection of life, property, and the environment.
(b) The Secretary may modify the complement, by endorsement on the certificate, for
reasons of changed conditions or employment.
(c) A requirement made under this section by
an authorized official may be appealed to the
Secretary under prescribed regulations.
(d) A vessel to which this section applies may
not be operated without having in its service the
complement required in the certificate of inspection.
(e) When a vessel is deprived of the service of
a member of its complement without the consent, fault, or collusion of the owner, charterer,
managing operator, agent, master, or individual
in charge of the vessel, the master shall engage,
if obtainable, a number of members equal to the
number of those of whose services the master
has been deprived. The replacements must be of
the same or a higher grade or rating than those
whose places they fill. If the master finds the
vessel is sufficiently manned for the voyage, and
replacements are not available to fill all the vacancies, the vessel may proceed on its voyage.
Within 12 hours after the vessel arrives at its
destination, the master shall report in writing
to the Secretary the cause of each deficiency in
the complement. A master failing to make the
report is liable to the United States Government
for a civil penalty of $1,000 for each deficiency.
(f) The owner, charterer, or managing operator
of a vessel not manned as required by this section is liable to the Government for a civil penalty of $10,000.
(g) A person may not employ an individual as,
and an individual may not serve as, a master,
mate, engineer, radio officer, or pilot of a vessel
to which this part applies or which is subject to
inspection under chapter 33 of this title if the
individual is not licensed by the Secretary. A

Page 120

person (including an individual) violating this
subsection is liable to the Government for a
civil penalty of not more than $10,000. Each day
of a continuing violation is a separate offense.
(h) The owner, charterer, or managing operator of a freight vessel of less than 100 gross tons
as measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary
under section 14104 of this title, a small passenger vessel, or a sailing school vessel not
manned as required by this section is liable to
the Government for a civil penalty of $1,000. The
vessel also is liable in rem for the penalty.
(i) When the 2 next most senior licensed officers on a vessel reasonably believe that the master or individual in charge of the vessel is under
the influence of alcohol or a dangerous drug and
is incapable of commanding the vessel, the next
most senior master, mate, or operator licensed
under section 7101(c)(1) or (3) of this title shall—
(1) temporarily relieve the master or individual in charge;
(2) temporarily take command of the vessel;
(3) in the case of a vessel required to have a
log under chapter 113 of this title, immediately enter the details of the incident in the
log; and
(4) report those details to the Secretary—
(A) by the most expeditious means available; and
(B) in written form transmitted within 12
hours after the vessel arrives at its next
port.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 547; Pub. L.
98–557, § 29(b), Oct. 30, 1984, 98 Stat. 2873; Pub. L.
99–640, § 11(b), Nov. 10, 1986, 100 Stat. 3550; Pub. L.
101–380, title IV, §§ 4104, 4114(c), 4302(e), Aug. 18,
1990, 104 Stat. 511, 517, 538; Pub. L. 104–324, title
VII, § 725, Oct. 19, 1996, 110 Stat. 3939.)
HISTORICAL AND REVISION NOTES
Revised section
8101 ..............................................

Source section (U.S. Code)
46:222
46:224
46:446d

Section 8101 provides for the required composition of
the complement of licensed individuals and crew of an
inspected vessel when being operated.
Subsection (a) requires that the certificate of inspection for a vessel state the manning necessary for safe
navigation. Manning means the complement of licensed
officers and crew (including lifeboatmen). Any manning
requirements for sailing school vessels shall take into
account the participation of sailing school instructors
and sailing school students in the operation of those
vessels.
Subsection (b) permits the Secretary to modify the
manning requirements for reasons of changed conditions or employment.
Subsection (c) permits an appeal to the Secretary of
any manning requirements made by an authorized official.
Subsection (d) prohibits the operation of a vessel
without the manning required in the vessel’s certificate
of inspection.
When a vessel has a vacancy in the manning required
by its certificate of inspection without the consent,
fault, or collusion of anyone responsible for the management or operation of the vessel, subsection (e) requires that the master hire replacements, if possible, in
the same or higher grade or rating. However, if the
master finds the vessel sufficiently manned and re-

Page 121

§ 8103

TITLE 46—SHIPPING

placements are not available, the vessel may proceed
on its voyage. Within 12 hours of arrival at its destination, the master is required to file a written report
with the Secretary stating the cause of each deficiency
or be liable for a civil penalty. The report of deficiency
should include both the reason for the vacancy in the
first instance and the reason for the unavailability of
a qualified replacement.
Subsections (f), (g) and (h) prescribe civil penalties
for noncompliance with manning requirements. Subsection (g) also prohibits the employment or service of
an individual in a licensed capacity who is not licensed
by the Secretary.

Section 8102 requires the person responsible for the
management of a vessel carrying passengers to have a
suitable watch at night to guard against, and to sound
an alarm in case of fire or other danger, or be liable for
a civil penalty.
AMENDMENTS
1996—Subsec. (b). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’.
1984—Pub. L. 98–364 designated existing provisions as
subsec. (a) and added subsec. (b).

AMENDMENTS
1996—Subsec. (h). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’.
1990—Subsec. (a)(3). Pub. L. 101–380, § 4114(c), added
par. (3).
Subsec. (e). Pub. L. 101–380, § 4302(e)(1), substituted
‘‘$1,000’’ for ‘‘$50’’.
Subsec. (f). Pub. L. 101–380, § 4302(e)(2), substituted
‘‘$10,000’’ for ‘‘$100, or, for a deficiency of a licensed individual, a penalty of $500’’.
Subsec. (g). Pub. L. 101–380, § 4302(e)(3), substituted
‘‘$10,000’’ for ‘‘$500’’.
Subsec. (i). Pub. L. 101–380, § 4104, added subsec. (i).
1986—Subsec. (a). Pub. L. 99–640 amended subsec. (a)
generally, inserting cl. (1) designation before ‘‘a sailing
school’’ and adding cl. (2).
1984—Subsec. (g). Pub. L. 98–557 substituted provisions relating to inspection under chapter 33 of this
title, for provisions relating to applicability of part B
of this subtitle.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 8102. Watchmen
(a) The owner, charterer, or managing operator of a vessel carrying passengers during the
nighttime shall keep a suitable number of
watchmen in the vicinity of the cabins or staterooms and on each deck to guard against and
give alarm in case of a fire or other danger. An
owner, charterer, or managing operator failing
to provide watchmen required by this section is
liable to the United States Government for a
civil penalty of $1,000.
(b) The owner, charterer, managing operator,
agent, master, or individual in charge of a fish
processing vessel of more than 100 gross tons as
measured under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary under
section 14104 of this title shall keep a suitable
number of watchmen trained in firefighting on
board when hotwork is being done to guard
against and give alarm in case of a fire.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 548; Pub. L.
98–364, title IV, § 402(10), July 17, 1984, 98 Stat.
448; Pub. L. 104–324, title VII, § 726, Oct. 19, 1996,
110 Stat. 3939.)
HISTORICAL AND REVISION NOTES
Revised section
8102 ..............................................

Source section (U.S. Code)
46:470
46:471

§ 8103. Citizenship and Navy Reserve requirements
(a) Except as otherwise provided in this title,
only a citizen of the United States may serve as
master, chief engineer, radio officer, or officer
in charge of a deck watch or engineering watch
on a documented vessel.
(b)(1) Except as otherwise provided in this section, on a documented vessel—
(A) each unlicensed seaman must be—
(i) a citizen of the United States;
(ii) an alien lawfully admitted to the
United States for permanent residence; or
(iii) a foreign national who is enrolled in
the United States Merchant Marine Academy.1
(B) not more than 25 percent of the total
number of unlicensed seamen on the vessel
may be aliens lawfully admitted to the United
States for permanent residence.
(2) Paragraph (1) of this subsection does not
apply to—
(A) a yacht;
(B) a fishing vessel fishing exclusively for
highly migratory species (as that term is defined in section 3 of the Magnuson-Stevens
Fishery Conservation and Management Act (16
U.S.C. 1802)); and
(C) a fishing vessel fishing outside of the exclusive economic zone.
(3) The Secretary may waive a citizenship requirement under this section, other than a requirement that applies to the master of a documented vessel, with respect to—
(A) an offshore supply vessel or other similarly engaged vessel of less than 1,600 gross
tons as measured under section 14502 of this
title, or an alternate tonnage measured under
section 14302 of this title as prescribed by the
Secretary under section 14104 of this title that
operates from a foreign port;
(B) a mobile offshore drilling unit or other
vessel engaged in support of exploration, exploitation, or production of offshore mineral
energy resources operating beyond the water
above the outer Continental Shelf (as that
term is defined in section 2(a) of the Outer
Continental Shelf Lands Act (43 U.S.C.
1331(a)); and
(C) any other vessel if the Secretary determines, after an investigation, that qualified
seamen who are citizens of the United States
are not available.
(c) On each departure of a vessel (except a passenger vessel) for which a construction or oper1 So

in original. The period probably should be ‘‘; and’’.

§ 8103

TITLE 46—SHIPPING

ating differential subsidy has been granted, all
of the seamen of the vessel must be citizens of
the United States.
(d)(1) On each departure of a passenger vessel
for which a construction or operating differential subsidy has been granted, at least 90 percent
of the entire complement (including licensed individuals) must be citizens of the United States.
(2) An individual not required by this subsection to be a citizen of the United States may
be engaged only if the individual has a declaration of intention to become a citizen of the
United States or other evidence of admission to
the United States for permanent residence. An
alien may be employed only in the steward’s department of the passenger vessel.
(e) If a documented vessel is deprived for any
reason of the services of an individual (except
the master and the radio officer) when on a foreign voyage and a vacancy consequently occurs,
until the vessel’s return to a port at which in
the most expeditious manner a replacement who
is a citizen of the United States can be obtained,
an individual not a citizen of the United States
may serve in—
(1) the vacancy; or
(2) a vacancy resulting from the promotion
of another individual to fill the original vacancy.
(f) A person employing an individual in violation of this section or a regulation prescribed
under this section is liable to the United States
Government for a civil penalty of $500 for each
individual so employed.
(g) A deck or engineer officer employed on a
vessel on which an operating differential subsidy
is paid, or employed on a vessel (except a vessel
of the Coast Guard or Saint Lawrence Seaway
Development Corporation) owned or operated by
the Department of Transportation or by a corporation organized or controlled by the Department, if eligible, shall be a member of the Navy
Reserve.
(h) The President may—
(1) suspend any part of this section during a
proclaimed national emergency; and
(2) when the needs of commerce require, suspend as far and for a period the President considers desirable, subsection (a) of this section
for crews of vessels of the United States documented for foreign trade.
(i)(1) Except as provided in paragraph (3) of
this subsection, each unlicensed seaman on a
fishing, fish processing, or fish tender vessel
that is engaged in the fisheries in the navigable
waters of the United States or the exclusive economic zone must be—
(A) a citizen of the United States;
(B) an alien lawfully admitted to the United
States for permanent residence;
(C) any other alien allowed to be employed
under the Immigration and Nationality Act (8
U.S.C. 1101 et seq.); or
(D) an alien allowed to be employed under
the immigration laws of the Commonwealth of
the Northern Mariana Islands if the vessel is
permanently stationed at a port within the
Commonwealth and the vessel is engaged in
the fisheries within the exclusive economic
zone surrounding the Commonwealth or another United States territory or possession.

Page 122

(2) Not more than 25 percent of the unlicensed
seamen on a vessel subject to paragraph (1) of
this subsection may be aliens referred to in
clause (C) of that paragraph.
(3) This subsection does not apply to a fishing
vessel fishing exclusively for highly migratory
species (as that term is defined in section 3 of
the Magnuson-Stevens Fishery Conservation
and Management Act (16 U.S.C. 1802)).
(j) RIDING GANG MEMBER.—This section does
not apply to an individual who is a riding gang
member.
(k) CREW REQUIREMENTS FOR LARGE PASSENGER VESSELS.—
(1) CITIZENSHIP AND NATIONALITY.—Each unlicensed seaman on a large passenger vessel
shall be—
(A) a citizen of the United States;
(B) an alien lawfully admitted to the
United States for permanent residence;
(C) an alien allowed to be employed in the
United States under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.), including an alien crewman described in section 101(a)(15)(D)(i) of that Act (8 U.S.C.
1101(a)(15)(D)(i)), who meets the requirements of paragraph (3)(A) of this subsection;
or
(D) a foreign national who is enrolled in
the United States Merchant Marine Academy.
(2) PERCENTAGE LIMITATION FOR ALIEN SEAMEN.—Not more than 25 percent of the unlicensed seamen on a vessel described in paragraph (1) of this subsection may be aliens referred to in subparagraph (B) or (C) of that
paragraph.
(3) SPECIAL RULES FOR CERTAIN UNLICENSED
SEAMEN.—
(A) QUALIFICATIONS.—An unlicensed seaman described in paragraph (1)(C) of this
subsection—
(i) shall have been employed, for a period
of not less than 1 year, on a passenger vessel under the same common ownership or
control as the vessel described in paragraph (1) of this subsection, as certified by
the owner or managing operator of such
vessel to the Secretary;
(ii) shall have no record of material disciplinary actions during such employment,
as verified in writing by the owner or managing operator of such vessel to the Secretary;
(iii) shall have successfully completed a
United States Government security check
of the relevant domestic and international
databases, as appropriate, or any other national security-related information or
database;
(iv) shall have successfully undergone an
employer background check—
(I) for which the owner or managing
operator provides a signed report to the
Secretary that describes the background
checks undertaken that are reasonably
and legally available to the owner or
managing operator including personnel
file information obtained from such seaman and from databases available to the
public with respect to the seaman;

Page 123

§ 8103

TITLE 46—SHIPPING

(II) that consisted of a search of all information reasonably available to the
owner or managing operator in the seaman’s country of citizenship and any
other country in which the seaman receives employment referrals, or resides;
(III) that is kept on the vessel and
available for inspection by the Secretary; and
(IV) the information derived from
which is made available to the Secretary
upon request; and
(v) may not be a citizen or temporary or
permanent resident of a country designated by the United States as a sponsor
of terrorism or any other country that the
Secretary, in consultation with the Secretary of State and the heads of other appropriate United States agencies, determines to be a security threat to the United
States.
(B) RESTRICTIONS.—An unlicensed seaman
described in paragraph (1)(C) of this subsection—
(i) may be employed only in the steward’s department of the vessel; and
(ii) may not perform watchstanding,
automated engine room duty watch, or
vessel navigation functions.
(C) STATUS, DOCUMENTATION, AND EMPLOYMENT.—An unlicensed seaman described in
subparagraph (C) or (D) of paragraph (1) of
this subsection—
(i) is deemed to meet the nationality requirements necessary to qualify for a merchant mariners document notwithstanding
the requirements of part 12 of title 46, Code
of Federal Regulations;
(ii) is deemed to meet the proof-of-identity requirements necessary to qualify for
a merchant mariners document, as prescribed under regulations promulgated by
the Secretary, if the seaman possesses—
(I) an unexpired passport issued by the
government of the country of which the
seaman is a citizen or subject; and
(II) an unexpired visa issued to the seaman, as described in paragraph (1)(C);
(iii) shall, if eligible, be issued a merchant mariners document with an appropriate annotation reflecting the restrictions of subparagraph (B) of this paragraph; and
(iv) may be employed for a period of
service on board not to exceed 36 months
in the aggregate as a nonimmigrant crewman described in section 101(a)(15)(D)(i) of
the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(D)(i)) on vessels engaged
in domestic voyages notwithstanding the
departure requirements and time limitations of such section and section 252 of the
Immigration and Nationality Act (8 U.S.C.
1282) and the regulations and rules promulgated thereunder.
(4) MERCHANT MARINER’S DOCUMENT REQUIREMENTS NOT AFFECTED.—This subsection shall
not be construed to affect any requirement
under Federal law that an individual must
hold a merchant mariner’s document.

(5) DEFINITIONS.—In this subsection:
(A) STEWARD’S DEPARTMENT.—The term
‘‘steward’s department’’ means the department that includes entertainment personnel
and all service personnel, including wait
staff, housekeeping staff, and galley workers, as defined in the vessel security plan approved by the Secretary pursuant to section
70103(c) of this title.
(B) LARGE PASSENGER VESSEL.—The term
‘‘large passenger vessel’’ means a vessel of
more than 70,000 gross tons, as measured
under section 14302 of this title, with capacity for at least 2,000 passengers and documented with a coastwise endorsement under
chapter 121 of this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 548; Pub. L.
100–239, §§ 5(a)(1), (2), (b)–(d)(1), Jan. 11, 1988, 101
Stat. 1780; Pub. L. 100–255, Mar. 4, 1988, 102 Stat.
23; Pub. L. 101–595, title VI, § 603(6), title VII,
§ 711, Nov. 16, 1990, 104 Stat. 2993, 2997; Pub. L.
104–208, div. A, title I, § 101(a) [title II, § 211(b)],
Sept. 30, 1996, 110 Stat. 3009, 3009–41; Pub. L.
104–324, title VII, § 727, title XI, § 1123, Oct. 19,
1996, 110 Stat. 3939, 3980; Pub. L. 108–293, title IV,
§ 412, Aug. 9, 2004, 118 Stat. 1046; Pub. L. 109–163,
div. A, title V, § 515(f)(3)(A), (B), Jan. 6, 2006, 119
Stat. 3236; Pub. L. 109–241, title III, § 312(c)(1),
July 11, 2006, 120 Stat. 533; Pub. L. 109–304,
§ 15(22), Oct. 6, 2006, 120 Stat. 1704; Pub. L.
109–364, div. C, title XXXV, § 3509, Oct. 17, 2006,
120 Stat. 2518; Pub. L. 110–181, div. C, title XXXV,
§ 3529(d), Jan. 28, 2008, 122 Stat. 604.)
HISTORICAL AND REVISION NOTES
Revised section
8103 ..............................................

Source section (U.S. Code)
46:221
46:236
46:672(h)
46:672a
46:690
46:1132

Section 8103 sets forth the requirements for citizenship and Naval Reserve membership for the complement on a vessel documented under the laws of the
United States.
Subsection (a) requires that the master, chief engineer, or officer in charge of a deck or engineering
watch on a United States documented vessel be a
United States citizen.
Subsection (b) requires that 75 percent of the seamen,
excluding licensed individuals, on a United States documented vessel be United States citizens, except for a
fishing or whaling vessel or yacht. The Secretary may
reduce the percentage if the Secretary decides on investigation that United States seamen are not available.
This investigation and percentage reduction authority
is the sole responsibility of the Secretary of Transportation and accordingly the Secretary is to make these
decisions expeditiously, promptly, and independently
so as not to be dependent on any other agency to make
this reduction. The Committee believes the Secretary
is capable of this decision and need not delay or fail to
make the decision because some other agency does not
have the information or would require an extended period to acquire that information. The phrase ‘‘for any
reason’’ is used merely to emphasize the complete discretion of the Secretary in making this decision. In addition, because this decision is based on an investigation, formal procedures of the Administrative Procedure Act do not apply.
Subsections (c) and (d) provide that a vessel, except
a passenger vessel, on departure from the United States
that has been granted a construction or operating dif-

§ 8104

TITLE 46—SHIPPING

Page 124

ferential subsidy have a higher percentage citizenship
requirement. Subsection (c) requires all of the crew and
employees of a cargo vessel be United States citizens.
Subsection (d) requires at least 90 percent of the entire
complement of a passenger vessel be United States citizens. The phrase ‘‘including all licensed individuals’’
emphasizes that all licensed individuals are required to
be United States citizens as required by subsection (a)
and that they compose part of the 90 percent requirement under this subsection. Further, under subsection
(d), the balance of the complement must be individuals
who have a declaration of intention to become a United
States citizen or evidence of admission to the United
States as a permanent resident and may only be employed in the steward’s department of the passenger
vessel.
Except for the master, subsection (e) permits a nonUnited States citizen to fill a vacancy that occurs for
any reason on a United States documented vessel during a foreign voyage until the vessel returns to a
United States port where a United States citizen replacement can be obtained. The phrase ‘‘for any reason’’ is used merely for emphasis.
Subsection (f) provides for the penalty for violation
of this section.
Subsection (g) requires a deck or engineer officer on
a vessel that has been granted an operating differential
subsidy or is under the control by the Department of
Transportation to be, if eligible, a member of the Naval
Reserve. This section does not apply to a vessel of the
Coast Guard or the Saint Lawrence Seaway Development Corporation.
Subsection (h) permits the President to suspend the
requirements of this section during a proclaimed national emergency or the requirement of subsection (a)
for United States vessels documented for foreign trade
when the needs of commerce require.

Subsec. (b). Pub. L. 100–255 substituted ‘‘section,’’ for
‘‘subsection,’’ in par. (3).
Pub. L. 100–239, § 5(a)(2), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows:
‘‘On each departure of a documented vessel (except a
fishing or whaling vessel or yacht) from a port of the
United States, 75 percent of the seamen (excluding licensed individuals) must be citizens of the United
States. If the Secretary decides, on investigation, that
qualified citizen seamen are not available, the Secretary may reduce the percentage.’’
Subsecs. (c), (d)(1). Pub. L. 100–239, § 5(b), struck out
‘‘from the United States’’ after ‘‘On each departure’’.
Subsec. (e). Pub. L. 100–239, § 5(c), inserted ‘‘and the
radio officer’’ after ‘‘the master’’ and substituted
‘‘until the vessel’s return to a port at which in the
most expeditious manner’’ for ‘‘until the vessel’s first
return to a United States port at which’’.
Subsec. (i). Pub. L. 100–239, § 5(d)(1), added subsec. (i).

REFERENCES IN TEXT

For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

The Immigration and Nationality Act, referred to in
subsecs. (i)(1)(C) and (k)(1)(C), is act June 27, 1952, ch.
477, 66 Stat. 163, which is classified principally to chapter 12 (§ 1101 et seq.) of Title 8, Aliens and Nationality.
For complete classification of this Act to the Code, see
Short Title note set out under section 1101 of Title 8
and Tables.
AMENDMENTS
2008—Subsec. (k)(3)(C)(iv). Pub. L. 110–181 inserted
‘‘and section 252 of the Immigration and Nationality
Act (8 U.S.C. 1282)’’ after ‘‘limitations of such section’’.
2006—Pub. L. 109–163, § 515(f)(3)(B), substituted ‘‘Navy
Reserve’’ for ‘‘Naval Reserve’’ in section catchline.
Subsec. (a). Pub. L. 109–304 substituted ‘‘Except as
otherwise provided in this title, only’’ for ‘‘Only’’.
Subsec. (g). Pub. L. 109–163, § 515(f)(3)(A), substituted
‘‘Navy Reserve’’ for ‘‘Naval Reserve’’.
Subsec. (j). Pub. L. 109–241 added subsec. (j).
Subsec. (k). Pub. L. 109–364 added subsec. (k).
2004—Subsec. (b)(1)(A). Pub. L. 108–293 amended subpar. (A) generally. Prior to amendment, subpar. (A)
read as follows: ‘‘each unlicensed seaman must be a citizen of the United States or an alien lawfully admitted
to the United States for permanent residence; and’’.
1996—Subsec. (b)(2)(B). Pub. L. 104–208 substituted
‘‘Magnuson-Stevens Fishery’’ for ‘‘Magnuson Fishery’’.
Subsec. (b)(3)(A). Pub. L. 104–324, § 727, inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘1,600 gross tons’’.
Subsec. (i)(1)(D). Pub. L. 104–324, § 1123, added subpar.
(D).
Subsec. (i)(3). Pub. L. 104–208 substituted ‘‘MagnusonStevens Fishery’’ for ‘‘Magnuson Fishery’’.
1990—Subsec. (i)(3)(C). Pub. L. 101–595, §§ 603(6) and 711,
amended subpar. (C) identically, substituting ‘‘Nationality’’ for ‘‘Naturalization’’.
1988—Subsec. (a). Pub. L. 100–239, § 5(a)(1), inserted
‘‘radio officer,’’ after ‘‘chief engineer,’’.

EFFECTIVE DATE OF 1996 AMENDMENT
Pub. L. 104–208, div. A, title I, § 101(a) [title II,
§ 211(b)], Sept. 30, 1996, 110 Stat. 3009, 3009–41, provided
that the amendment made by that section is effective
15 days after Oct. 11, 1996.
EFFECTIVE DATE OF 1988 AMENDMENT
Pub. L. 100–239, § 5(a)(3), Jan. 11, 1988, 101 Stat. 1780,
provided that: ‘‘Paragraph (2) of this subsection
[amending this section] is effective 30 days after the
date of enactment of this Act [Jan. 11, 1988].’’
Pub. L. 100–239, 5(d)(2), Jan. 11, 1988, 101 Stat. 1781,
provided that: ‘‘This subsection [amending this section]
is effective 360 days after the day of the enactment of
this Act [Jan. 11, 1988].’’
TRANSFER OF FUNCTIONS

APPLICATION OF SECTION TO FISHING VESSELS IN
CALIFORNIA
Pub. L. 101–595, title III, § 317, Nov. 16, 1990, 104 Stat.
2988, as amended by Pub. L. 104–324, title III,
§ 301(d)(2)(B), Oct. 19, 1996, 110 Stat. 3916, provided that:
‘‘(a) DEFINITION.—For purposes of the application of
sections 8103(a), 12102, 12110, 12111, and 12122(b) of title
46, United States Code, to a fishing vessel operating in
waters subject to the jurisdiction of the United States
off the coast of the State of California, the term ‘citizen of the United States’ includes an alien lawfully admitted to the United States for permanent residence.
‘‘(b) TERMINATION.—This section shall terminate on
October 1, 2000.’’

§ 8104. Watches
(a) An owner, charterer, managing operator,
master, individual in charge, or other person
having authority may permit an officer to take
charge of the deck watch on a vessel when leaving or immediately after leaving port only if the
officer has been off duty for at least 6 hours
within the 12 hours immediately before the time
of leaving.
(b) On an oceangoing or coastwise vessel of not
more than 100 gross tons as measured under section 14502 of this title, or an alternate tonnage
measured under section 14302 of this title as prescribed by the Secretary under section 14104 of
this title (except a fishing, fish processing, or

Page 125

TITLE 46—SHIPPING

fish tender vessel), a licensed individual may not
be required to work more than 9 of 24 hours
when in port, including the date of arrival, or
more than 12 of 24 hours at sea, except in an
emergency when life or property are endangered.
(c) On a towing vessel (except a towing vessel
operated only for fishing, fish processing, fish
tender, or engaged in salvage operations) operating on the Great Lakes, harbors of the Great
Lakes, and connecting or tributary waters between Gary, Indiana, Duluth, Minnesota, Niagara Falls, New York, and Ogdensburg, New
York, a licensed individual or seaman in the
deck or engine department may not be required
to work more than 8 hours in one day or permitted to work more than 15 hours in any 24hour period, or more than 36 hours in any 72hour period, except in an emergency when life or
property are endangered.
(d) On a merchant vessel of more than 100
gross tons as measured under section 14502 of
this title, or an alternate tonnage measured
under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title
(except a vessel only operating on rivers, harbors, lakes (except the Great Lakes), bays,
sounds, bayous, and canals, a fishing, fish tender, or whaling vessel, a fish processing vessel of
not more than 5,000 gross tons as measured
under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104 of this title, yacht, or vessel engaged
in salvage operations), the licensed individuals,
sailors, coal passers, firemen, oilers, and water
tenders shall be divided, when at sea, into at
least 3 watches, and shall be kept on duty successively to perform ordinary work incident to
the operation and management of the vessel.
The requirement of this subsection applies to
radio officers only when at least 3 radio officers
are employed. A licensed individual or seaman
in the deck or engine department may not be required to work more than 8 hours in one day.
(e) On a vessel designated by subsection (d) of
this section—
(1) a seaman may not be—
(A) engaged to work alternately in the
deck and engine departments; or
(B) required to work in the engine department if engaged for deck department duty or
required to work in the deck department if
engaged for engine department duty;
(2) a seaman may not be required to do unnecessary work on Sundays, New Year’s Day,
July 4th, Labor Day, Thanksgiving Day, or
Christmas Day, when the vessel is in a safe
harbor, but this clause does not prevent dispatch of a vessel on a voyage; and
(3) when the vessel is in a safe harbor, 8
hours (including anchor watch) is a day’s
work.
(f) Subsections (d) and (e) of this section do
not limit the authority of the master or other
officer or the obedience of the seamen when, in
the judgment of the master or other officer, any
part of the crew is needed for—
(1) maneuvering, shifting the berth of, mooring, or unmooring, the vessel;

§ 8104

(2) performing work necessary for the safety
of the vessel, or the vessel’s passengers, crew,
or cargo;
(3) saving life on board another vessel in
jeopardy; or
(4) performing fire, lifeboat, or other drills
in port or at sea.
(g)(1) On a towing vessel, an offshore supply
vessel, or a barge to which this section applies,
that is engaged on a voyage of less than 600
miles, the licensed individuals and crewmembers
(except the coal passers, firemen, oilers, and
water tenders) may be divided, when at sea, into
at least 2 watches.
(2) Paragraph (1) applies to an offshore supply
vessel of at least 6,000 gross tons as measured
under section 14302 of this title if the individuals
engaged on the vessel are in compliance with
hours of service requirements (including recording and recordkeeping of that service) as prescribed by the Secretary.
(h) On a vessel to which section 8904 of this
title applies, an individual licensed to operate a
towing vessel may not work for more than 12
hours in a consecutive 24-hour period except in
an emergency.
(i) A person violating subsection (a) or (b) of
this section is liable to the United States Government for a civil penalty of $10,000.
(j) The owner, charterer, or managing operator
of a vessel on which a violation of subsection (c),
(d), (e), or (h) of this section occurs is liable to
the Government for a civil penalty of $10,000.
The seaman is entitled to discharge from the
vessel and receipt of wages earned.
(k) On a fish processing vessel subject to inspection under part B of this subtitle, the licensed individuals and deck crew shall be divided, when at sea, into at least 3 watches.
(l) Except as provided in subsection (k) of this
section, on a fish processing vessel, the licensed
individuals and deck crew shall be divided, when
at sea, into at least 2 watches if the vessel—
(1) entered into service before January 1,
1988, and is more than 1,600 gross tons as measured under section 14502 of this title, or an alternate tonnage measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title; or
(2) entered into service after December 31,
1987, and has more than 16 individuals on
board primarily employed in the preparation
of fish or fish products.
(m) This section does not apply to a fish processing vessel—
(1) entered into service before January 1,
1988, and not more than 1,600 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title; or
(2) entered into service after December 31,
1987, and having not more than 16 individuals
on board primarily employed in the preparation of fish or fish products.
(n) On a tanker, a licensed individual or seaman may not be permitted to work more than 15
hours in any 24-hour period, or more than 36
hours in any 72-hour period, except in an emergency or a drill. In this subsection, ‘‘work’’ in-

§ 8104

TITLE 46—SHIPPING

cludes any administrative duties associated
with the vessel whether performed on board the
vessel or onshore.
(o)(1) Except as provided in paragraph (2) of
this subsection, on a fish tender vessel of not
more than 500 gross tons as measured under section 14502 of this title, or less than 500 gross tons
as measured under section 14502 of this title, or
is less than 2,500 gross tons as measured under
section 14302 of this title engaged in the Aleutian trade, the licensed individuals and crewmembers shall be divided, when at sea, into at
least 3 watches.
(2) On a fish tender vessel of not more than 500
gross tons as measured under section 14502 of
this title, or less than 500 gross tons as measured under section 14502 of this title, or is less
than 2,500 gross tons as measured under section
14302 of this title engaged in the Aleutian trade,
the licensed individuals and crewmembers shall
be divided, when at sea, into at least 2 watches,
if the vessel—
(A) before September 8, 1990, operated in
that trade; or
(B)(i) before September 8, 1990, was purchased to be used in that trade; and
(ii) before June 1, 1992, entered into service
in that trade.
(p) The Secretary may prescribe the watchstanding and work hours requirements for an oil
spill response vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 549; Pub. L.
98–364, title IV, § 402(11), July 17, 1984, 98 Stat.
448; Pub. L. 98–557, § 33(c), Oct. 30, 1984, 98 Stat.
2876; Pub. L. 99–307, § 1(12), May 19, 1986, 100 Stat.
445; Pub. L. 101–380, title IV, §§ 4114(b), 4302(f),
Aug. 18, 1990, 104 Stat. 517, 538; Pub. L. 101–595,
title VI, § 602(e)(1), Nov. 16, 1990, 104 Stat. 2991;
Pub. L. 102–587, title V, § 5212, Nov. 4, 1992, 106
Stat. 5077; Pub. L. 103–206, title III, § 322(a), Dec.
20, 1993, 107 Stat. 2428; Pub. L. 104–324, title VII,
§ 728, title XI, §§ 1104(c), 1114, Oct. 19, 1996, 110
Stat. 3939, 3967, 3971; Pub. L. 109–241, title III,
§ 311(b), July 11, 2006, 120 Stat. 530; Pub. L.
111–281, title VI, § 617(d), title IX, § 903(a)(1), Oct.
15, 2010, 124 Stat. 2973, 3010.)
HISTORICAL AND REVISION NOTES
Revised section
8104 ..............................................

Source section (U.S. Code)
46:235
46:405(b)
46:673

Section 8104 prescribes certain working hours and
conditions under which working hours are set. The
Committee intends that these sections be interpreted
in a manner consistent with one another.
Subsection (a) permits an individual to take charge
of the deck watch on leaving port and immediately
thereafter only if the individual has been off duty for
6 of the 12 hours immediately prior to departure.
Subsection (b) prohibits a licensed individual from
being required to work more than 9 of 24 hours in port
or more than 12 of 24 hours at sea on an oceangoing or
coastwise vessel of not more than 100 gross tons, except
in an emergency.
Subsection (c) prescribes a maximum 8-hour day for
licensed individuals and seamen on towing vessels operating on the Great Lakes and certain connecting or
tributary waters.
Subsection (d) requires certain members of the complement of certain merchant vessels of more than 100
gross tons to be divided into at least 3 successive

Page 126

watches when at sea. This requirement applies to radio
officers only when at least 3 radio officers are employed. Subsection (d) also prescribes a maximum 8hour work day for licensed individuals and seamen on
these vessels.
For the Great Lakes towing vessels and merchant
vessels in subsections (c) and (d), subsection (e) requires that seamen be hired only for work in either the
deck or the engine department. When in a safe harbor,
seamen may be required to do only necessary work on
Sundays and certain holidays, unless the vessel is getting underway on a voyage. Further, when in a safe
harbor, this subsection restates the maximum 8-hour
work day which applies even for anchor watch.
Subsection (f) states that the limitations in subsections (d) and (e) do not apply if the master or other
officer decides the crew is needed for certain routine,
safety, or rescue activities.
Subsection (g) provides that for a towing vessel (except a Great Lakes towing vessel under subsection (c)),
offshore supply vessel, or barge on a voyage of less than
600 miles, the licensed officers and certain crewmembers may be divided into not less than two watches
when at sea.
Subsection (h) provides that the licensed operator for
a towing vessel at least 26 feet long may not be required to work more than 12 of 24 hours, except in an
emergency.
Subsections (i) and (j) prescribe penalties for violations of the provisions of this section and, in certain instances, entitles the seaman to discharge and payment
of wages.
AMENDMENTS
2010—Subsec. (g). Pub. L. 111–281, § 617(d), designated
existing provisions as par. (1) and added par. (2).
Subsec. (o). Pub. L. 111–281, § 903(a)(1), made technical
amendment to directory language of Pub. L. 109–241,
§ 311(b). See 2006 Amendment note below.
2006—Subsec. (o). Pub. L. 109–241, as amended by Pub.
L. 111–281, § 903(a)(1), substituted ‘‘or less than 500 gross
tons as measured under section 14502 of this title, or is
less than 2,500 gross tons as measured under section
14302 of this title’’ for ‘‘or an alternate tonnage measured under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title’’ in pars.
(1) and (2).
1996—Subsec. (b). Pub. L. 104–324, § 728(1), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘100 gross tons’’.
Subsec. (c). Pub. L. 104–324, § 1114(a), struck out ‘‘or
permitted’’ after ‘‘required’’ and inserted ‘‘or permitted
to work more than 15 hours in any 24-hour period, or
more than 36 hours in any 72-hour period’’ after ‘‘day’’.
Subsec. (d). Pub. L. 104–324, § 728(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘100 gross tons’’ and after ‘‘5,000 gross
tons’’.
Subsec. (e). Pub. L. 104–324, § 1114(b), substituted ‘‘subsection (d)’’ for ‘‘subsections (c) and (d)’’ in introductory provisions.
Subsec. (g). Pub. L. 104–324, § 1114(c), struck out ‘‘(except a vessel to which subsection (c) of this section applies)’’ after ‘‘On a towing vessel’’.
Subsec. (l)(1). Pub. L. 104–324, § 728(3), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘1,600 gross tons’’.
Subsec. (m)(1). Pub. L. 104–324, § 728(4), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘1,600 gross tons’’.
Subsec. (o)(1). Pub. L. 104–324, § 728(5), inserted ‘‘as
measured under section 14502 of this title, or an alter-

Page 127

§ 8106

TITLE 46—SHIPPING

nate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘500 gross tons’’.
Subsec. (o)(2). Pub. L. 104–324, § 728(6), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘500 gross tons’’.
Subsec. (p). Pub. L. 104–324, § 1104(c), amended subsec.
(p) generally. Prior to amendment, subsec. (p) read as
follows: ‘‘On a vessel used only to respond to a discharge of oil or a hazardous substance, the licensed individuals and crewmembers may be divided into at
least two watches when the vessel is engaged in an operation less than 12 hours in duration.’’
1993—Subsec. (g). Pub. L. 103–206, § 322(a)(1), struck
out ‘‘a vessel used only to respond to a discharge of oil
or a hazardous substance,’’ after ‘‘an offshore supply
vessel,’’.
Subsec. (p). Pub. L. 103–206, § 322(a)(2), added subsec.
(p).
1992—Subsec. (g). Pub. L. 102–587, § 5212(1), inserted ‘‘a
vessel used only to respond to a discharge of oil or a
hazardous substance,’’ after ‘‘an offshore supply vessel,’’.
Subsecs. (n), (o). Pub. L. 102–587, § 5212(2), redesignated
subsec. (n), relating to fish tender vessels of not more
than 500 gross tons engaged in Aleutian trade, as (o).
1990—Subsecs. (i), (j). Pub. L. 101–380, § 4302(f), substituted ‘‘$10,000’’ for ‘‘$100’’ in subsec. (i) and for ‘‘$500’’
in subsec. (j).
Subsec. (n). Pub. L. 101–595 added subsec. (n) relating
to fish tender vessels of not more than 500 gross tons
engaged in Aleutian trade.
Pub. L. 101–380, § 4114(b), added subsec. (n) relating to
tankers.
1986—Subsec. (k). Pub. L. 99–307 substituted ‘‘watches’’ for ‘‘watchers’’.
1984—Subsec. (b). Pub. L. 98–364, § 402(11)(A), substituted ‘‘100 gross tons (except a fishing, fish processing, or fish tender vessel)’’ for ‘‘100 gross tons’’.
Subsec. (c). Pub. L. 98–364, § 402(11)(B), substituted
‘‘fishing, fish processing, fish tender,’’ for ‘‘fishing’’.
Subsec. (d). Pub. L. 98–364, § 402(11)(C), substituted ‘‘a
fishing, fish tender, or whaling vessel, a fish processing
vessel of not more than 5,000 gross tons’’ for ‘‘a fishing
or whaling vessel’’.
Subsec. (k). Pub. L. 98–557 substituted ‘‘shall’’ for
‘‘may’’.
Pub. L. 98–364, § 402(11)(D), added subsec. (k).
Subsec. (l). Pub. L. 98–557 substituted ‘‘shall’’ for
‘‘may’’ in provisions preceding par. (1).
Pub. L. 98–364, § 402(11)(D), added subsec. (l).
Subsec. (m). Pub. L. 98–364, § 402(11)(D), added subsec.
(m).
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–281, title IX, § 903(a), Oct. 15, 2010, 124 Stat.
3010, provided that the amendment by section 903(a)(1)
is effective with enactment of Pub. L. 109–241.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

§ 8105. Fishing vessel exemption
Notwithstanding any other provision of law,
neither the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978, nor any amendment
to such convention, shall apply to a fishing vessel, including a fishing vessel used as a fish tender vessel.
(Added Pub. L. 104–324, title XI, § 1146(a), Oct. 19,
1996, 110 Stat. 3992.)

PRIOR PROVISIONS
A prior section 8105, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 550, authorized Secretary to prescribe regulations
to carry out this part prior to repeal by Pub. L. 101–595,
title VI, § 603(7)(A), Nov. 16, 1990, 104 Stat. 2993.

§ 8106. Riding gangs
(a) IN GENERAL.—The owner or managing operator of a freight vessel of the United States on
voyages covered by the International Convention for Safety of Life at Sea, 1974 (32 UST 47m)
shall—
(1) ensure that—
(A) subject to subsection (d), each riding
gang member on the vessel—
(i) is a United States citizen or an alien
lawfully admitted to the United States for
permanent residence; or
(ii) possesses a United States nonimmigrant visa for individuals desiring to
enter the United States temporarily for
business, employment-related and personal
identifying information, and any other
documentation required by the Secretary;
(B) all required documentation for such
member is kept on the vessel and available
for inspection by the Secretary; and
(C) each riding gang member is identified
on the vessel’s crew list;
(2) ensure that—
(A) the owner or managing operator attests in a certificate that the background of
each riding gang member has been examined
and found to be free of any credible information indicating a material risk to the security of the vessel, the vessel’s cargo, the
ports the vessel visits, or other individuals
onboard the vessel;
(B) the background check consisted of a
search of all information reasonably available to the owner or managing operator in
the riding gang member’s country of citizenship and any other country in which the
riding gang member works, receives employment referrals, or resides;
(C) the certificate required under subparagraph (A) is kept on the vessel and available
for inspection by the Secretary; and
(D) the information derived from any such
background check is made available to the
Secretary upon request;
(3) ensure that each riding gang member,
while on board the vessel, is subject to the
same random chemical testing and reporting
regimes as crew members;
(4) ensure that each such riding gang member receives basic safety familiarization and
basic safety training approved by the Coast
Guard as satisfying the requirements for such
training under the International Convention
of Training, Certification, and Watchkeeping
for Seafarers, 1978;
(5) prevent from boarding the vessel, or
cause the removal from the vessel at the first
available port, and disqualify from future
service on board any other vessel owned or operated by that owner or operator, any riding
gang member—
(A) who has been convicted in any jurisdiction of an offense described in paragraph (2)
or (3) of section 7703;

§ 8106

TITLE 46—SHIPPING

(B) whose license, certificate of registry,
or merchant mariner’s document has been
suspended or revoked under section 7704; or
(C) who otherwise constitutes a threat to
the safety of the vessel;
(6) ensure and certify to the Secretary that
the sum of—
(A) the number of riding gang members on
board a freight vessel, and
(B) the number of individuals in addition
to crew permitted under section 3304,
does not exceed 12;
(7) ensure that every riding gang member is
employed on board the vessel under conditions
that meet or exceed the minimum international standards of all applicable international labor conventions to which the
United States is a party, including all of the
merchant seamen protection and relief provided under United States law; and
(8) ensure that each riding gang member—
(A) is supervised by an individual who
holds a license issued under chapter 71; and
(B) only performs work in conjunction
with individuals who hold merchant mariners documents issued under chapter 73 and
who are part of the vessel’s crew.
(b) PERMITTED WORK.—Subject to subsection
(f), a riding gang member on board a vessel to
which subsection (a) applies who is neither a
United States citizen nor an alien lawfully admitted to the United States for permanent residence may not perform any work on board the
vessel other than—
(1) work in preparation of a vessel entering
a shipyard located outside of the United
States;
(2) completion of the residual repairs after
departing a shipyard located outside of the
United States; or
(3) technical in-voyage repairs, in excess of
any repairs that can be performed by the vessel’s crew, in order to advance the vessel’s useful life without having to actually enter a
shipyard.
(c) WORKDAY LIMIT.—
(1) IN GENERAL.—The maximum number of
days in any calendar year that the owner or
operator of a vessel to which subsection (a) applies may employ on board riding gang members who are neither United States citizens
nor aliens lawfully admitted to the United
States for permanent residence for work on
board that vessel is 60 days. If the vessel is at
sea on the 60th day, each riding gang member
shall be discharged from the vessel at the next
port of call reached by the vessel after the
date on which the 60-workday limit is reached.
(2) CALCULATION.—For the purpose of calculating the 60-workday limit under this subsection, each day worked by a riding gang
member who is neither a United States citizen
nor an alien lawfully admitted to the United
States for permanent residence shall be counted against the limitation.
(d) EXCEPTIONS FOR WARRANTY WORK.—
(1) IN GENERAL.—Subsections (b), (c), (e), and
(f) do not apply to a riding gang member employed exclusively to perform, and who performs only, work that is—

Page 128

(A) customarily performed by original
equipment manufacturers’ technical representatives;
(B) required by a manufacturer’s warranty
on specific machinery and equipment; or
(C) required by a contractual guarantee or
warranty on actual repairs performed in a
shipyard located outside of the United
States.
(2) CITIZENSHIP REQUIREMENT.—Subsection
(a)(1)(A) applies only to a riding gang member
described in paragraph (1) who is on the vessel
when it calls at a United States port.
(e) RECORDKEEPING.—In addition to the requirements of subsection (a), the owner or managing operator of a vessel to which subsection
(a) applies shall ensure that all information necessary to ensure compliance with this section,
as determined by the Secretary, is entered into
the vessel’s official logbook required by chapter
113.
(f) FAILURE TO EMPLOY QUALIFIED AVAILABLE
U.S. CITIZENS OR RESIDENTS.—
(1) IN GENERAL.—The owner or operator of a
vessel to which subsection (a) applies may not
employ a riding gang member who is neither a
United States citizen nor an alien lawfully admitted to the United States for permanent
residence to perform work described in subsection (b) unless the owner or operator determines, in accordance with procedures established by the Secretary to carry out section
8103(b)(3)(C), that there is not a sufficient
number of United States citizens or individuals lawfully admitted to the United States
for permanent residence who are qualified and
available for the work for which the riding
gang member is to be employed.
(2) CIVIL PENALTY.—A violation of paragraph
(1) is punishable by a civil penalty of not more
than $10,000 for each day during which the violation continues.
(3) CONTINUING VIOLATIONS.—The maximum
amount of a civil penalty for a violation under
this subsection shall not exceed—
(A) $50,000 if the violation occurs in fiscal
year 2006;
(B) $75,000 if the violation occurs in fiscal
year 2007; and
(C) $100,000 if the violation occurs after fiscal year 2007.
(4) DETERMINATION OF AMOUNT.—In determining the amount of the penalty, the Secretary
shall take into account the nature, circumstances, extent, and gravity of the violation
committed and, with respect to the violator,
the degree of culpability, the history of prior
offenses, the ability to pay, and such other
matters as justice may require.
(5) COMPROMISE, MODIFICATION, AND REMITTAL.—The Secretary may compromise, modify,
or remit, with or without conditions, any civil
penalty imposed under this section.
(Added Pub. L. 109–241, title III, § 312(a), July 11,
2006, 120 Stat. 530.)
INTERNATIONAL CONVENTION FOR SAFETY OF LIFE AT
SEA
For International Conventions for the Safety of Life
at Sea to which the United States has been a party, see

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TITLE 46—SHIPPING

section 1602 of Title 33, Navigation and Navigable Waters, and notes thereunder.

§ 8107. Use of force against piracy
(a) LIMITATION ON LIABILITY.—An owner, operator, time charterer, master, mariner, or individual who uses force or authorizes the use of
force to defend a vessel of the United States
against an act of piracy shall not be liable for
monetary damages for any injury or death
caused by such force to any person engaging in
an act of piracy if such force was in accordance
with standard rules for the use of force in selfdefense of vessels prescribed by the Secretary.
(b) PROMOTION OF COORDINATED ACTION.—To
carry out the purpose of this section, the Secretary of the department in which the Coast
Guard is operating shall work through the International Maritime Organization to establish
agreements to promote coordinated action
among flag- and port-states to deter, protect
against, and rapidly respond to piracy against
the vessels of, and in the waters under the jurisdiction of, those nations, and to ensure limitations on liability similar to those established by
subsection (a).
(c) DEFINITION.—For the purpose of this section, the term ‘‘act of piracy’’ means any act of
aggression, search, restraint, depredation, or
seizure attempted against a vessel of the United
States by an individual not authorized by the
United States, a foreign government, or an
international organization recognized by the
United States to enforce law on the high seas.
(Added Pub. L. 111–281, title IX, § 912(a), Oct. 15,
2010, 124 Stat. 3016.)
STANDARD RULES FOR THE USE OF FORCE FOR SELFDEFENSE OF VESSELS OF THE UNITED STATES
Pub. L. 111–281, title IX, § 912(c), Oct. 15, 2010, 124 Stat.
3017, provided that: ‘‘Not later than 180 days after the
date of enactment of this act [Oct. 15, 2010], the secretary [sic] of the department in which the coast guard
[sic] is operating, in consultation with representatives
of industry and labor, shall develop standard rules for
the use of force for self-defense of vessels of the United
States.’’

CHAPTER 83—MASTERS AND OFFICERS
Sec.

8301.
8302.
8303.
8304.

Minimum number of licensed individuals.
Staff department.
Service under licenses issued without examination.
Implementing the Officers’ Competency Certificates Convention, 1936.
HISTORICAL AND REVISION NOTES

For certain vessels of the United States, chapter 83
prescribes the minimum number of licensed individuals
(including masters), establishes the staff department
consisting of medical and clerical personnel, restricts
service under certain licenses issued without examination, and implements the Officers’ Competency Certificates Convention of 1936.

§ 8301. Minimum number of licensed individuals
(a) Except as provided in chapter 89 of this
title and except for a vessel operating only on
rivers, harbors, lakes (except the Great Lakes),
bays, sounds, bayous, and canals, a vessel subject to inspection under chapter 33 of this title

§ 8301

shall engage a minimum of licensed individuals
as follows:
(1) Each of those vessels propelled by machinery or carrying passengers shall have a licensed master.
(2) A vessel of at least 1,000 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title and propelled by machinery shall have 3 licensed
mates, except—
(A) in the case of a vessel other than a mobile offshore drilling unit, if on a voyage of
less than 400 miles from port of departure to
port of final destination, the vessel shall
have 2 licensed mates; and
(B) in the case of a mobile offshore drilling
unit, the vessel shall have licensed individuals as provided by regulations prescribed by
the Secretary under section 8101 of this title.
(3) A vessel of at least 200 gross tons but less
than 1,000 gross tons as measured under section 14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title and propelled by machinery
shall have 2 licensed mates.
(4) A vessel of at least 100 gross tons but less
than 200 gross tons as measured under section
14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title and propelled by machinery
shall have one licensed mate. However, if the
vessel is on a voyage of more than 24 hours, it
shall have 2 licensed mates.
(5) A freight vessel or a passenger vessel of
at least 300 gross tons as measured under section 14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title and propelled by machinery
shall have a licensed engineer.
(b)(1) An offshore supply vessel of less than 500
gross tons as measured under section 14502 of
this title or 6,000 gross tons as measured under
section 14302 of this title on a voyage of less
than 600 miles shall have a licensed mate. If the
vessel is on a voyage of at least 600 miles, however, the vessel shall have 2 licensed mates.
(2) An offshore supply vessel of at least 6,000
gross tons as measured under section 14302 of
this title on a voyage of less than 600 miles shall
have at least two licensed mates, provided the
offshore supply vessel meets the requirements of
section 8104(g)(2). An offshore supply vessel of at
least 6,000 gross tons as measured under section
14302 of this title on a voyage of at least 600
miles shall have three licensed mates.
(3) An offshore supply vessel of more than 200
gross tons as measured under section 14502 of
this title, or an alternate tonnage measured
under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title,
may not be operated without a licensed engineer.
(c) Subsection (a) of this section does not
apply to a fishing or whaling vessel, a mobile
offshore drilling unit when on location, or a
yacht.

§ 8302

TITLE 46—SHIPPING

(d) The Secretary may—
(1) suspend any part of this chapter during a
national emergency proclaimed by the President; and
(2) increase the number of licensed individuals on a vessel to which this chapter applies
if, in the Secretary’s judgment, the vessel is
not sufficiently manned for safe operation.
(e) The Secretary may prescribe the minimum
number of licensed individuals for an oil spill response vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 550; Pub. L.
98–557, § 29(c), (d), Oct. 30, 1984, 98 Stat. 2873, 2874;
Pub. L. 99–640, § 11(d), Nov. 10, 1986, 100 Stat. 3550;
Pub. L. 100–448, § 7, Sept. 28, 1988, 102 Stat. 1842;
Pub. L. 103–206, title III, § 322(b), Dec. 20, 1993, 107
Stat. 2428; Pub. L. 104–324, title VII, § 729, title
XI, § 1104(d), Oct. 19, 1996, 110 Stat. 3940, 3967;
Pub. L. 111–281, title VI, § 617(c), Oct. 15, 2010, 124
Stat. 2973.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8301 ..............................................

46:223
46:404–1(8)

Section 8301 prescribes the minimum number of licensed individuals on board certain vessels based on the
vessel’s size or propulsion, length of voyage by distance
or time, or any combination of these factors.
Subsection (a) applies to certain merchant and passenger carrying vessels of the United States, each of
which must have a licensed master regardless of the
factors listed above. Subsection (b) applies to offshore
supply vessels. Subsection (c) exempts fishing or whaling vessels or yachts from these requirements.
Subsection (d) permits the Secretary to suspend any
part of this chapter during a declared national emergency or to increase the number of licensed individuals
required by this chapter if required for safe operation
of a vessel.
AMENDMENTS
2010—Subsec. (b). Pub. L. 111–281 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ‘‘An offshore supply vessel on a voyage of less
than 600 miles shall have a licensed mate. However, if
the vessel is on a voyage of at least 600 miles, the vessel
shall have 2 licensed mates. An offshore supply vessel
of more than 200 gross tons as measured under section
14502 of this title, or an alternate tonnage measured
under section 14302 of this title as prescribed by the
Secretary under section 14104 of this title may not be
operated without a licensed engineer.’’
1996—Subsec. (a)(2). Pub. L. 104–324, § 729(1), inserted
‘‘as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this
title as prescribed by the Secretary under section 14104
of this title’’ after ‘‘1,000 gross tons’’.
Subsec. (a)(3). Pub. L. 104–324, § 729(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘1,000 gross tons’’.
Subsec. (a)(4). Pub. L. 104–324, § 729(3), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘200 gross tons’’.
Subsec. (a)(5). Pub. L. 104–324, § 729(4), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘300 gross tons’’.
Subsec. (b). Pub. L. 104–324, § 729(5), inserted ‘‘as
measured under section 14502 of this title, or an alter-

Page 130

nate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘200 gross tons’’.
Subsec. (e). Pub. L. 104–324, § 1104(d), amended subsec.
(e) generally. Prior to amendment, subsec. (e) read as
follows: ‘‘A vessel used only to respond to a discharge
of oil or a hazardous substance shall have—
‘‘(1) two licensed mates when the vessel is engaged
in an operation over 12 hours in duration;
‘‘(2) one licensed mate when the vessel is engaged in
an operation less than 12 hours in duration; and
‘‘(3) if the vessel is more than 200 gross tons, a licensed engineer when the vessel is operating.’’
1993—Subsec. (e). Pub. L. 103–206 added subsec. (e).
1988—Subsec. (a)(2). Pub. L. 100–448 amended par. (2)
generally. Prior to amendment, par. (2) read as follows:
‘‘A vessel of at least 1,000 gross tons and propelled by
machinery shall have 3 licensed mates. However, if the
vessel is on a voyage of less than 400 miles from port
of departure to port of final destination, it shall have
2 licensed mates.’’
1986—Subsec. (c). Pub. L. 99–640 inserted ‘‘, a mobile
offshore drilling unit when on location,’’.
1984—Subsec. (a). Pub. L. 98–557, § 29(c), in provisions
preceding par. (1) inserted exception for the Great
Lakes and substituted provisions relating to inspection
under chapter 33 of this title for provisions relating to
applicability of part B of this subtitle.
Subsec. (a)(1). Pub. L. 98–557, § 29(d), inserted ‘‘propelled by machinery or carrying passengers’’.

§ 8302. Staff department
(a) This section applies to a vessel of the
United States except—
(1) a fishing or whaling vessel or a yacht;
(2) a vessel operated only on bays, sounds,
inland waters, and lakes (except the Great
Lakes); and
(3) a vessel ferrying passengers and cars on
the Great Lakes.
(b) The staff department on a vessel is a separate and independent department. It consists of
individuals registered under section 7101 of this
title, clerks, and individuals assigned to the senior registered medical doctor.
(c) The staff department is composed of a medical division and a purser’s division. The officer
in charge of each division is responsible only to
the master. The senior registered medical doctor
is in charge of the medical division. The senior
registered purser is in charge of the purser’s division.
(d) The officer in charge of the purser’s division of the staff department on an oceangoing
passenger vessel licensed to carry more than 100
passengers shall be a registered chief purser.
When more than 3 persons are employed in the
purser’s division of that vessel, there also shall
be at least one registered senior assistant purser
and one registered junior assistant purser.
(e) A person may not employ an individual to
serve in, and an individual may not serve in, a
grade of staff officer on a vessel, when that staff
officer is required by this section to be registered, if the individual does not have a certificate of registry as staff officer in that grade. A
person (including an individual) violating this
subsection is liable to the United States Government for a civil penalty of $100. However, if a
registered staff officer is not available at the
time of sailing, the vessel may sail with an unregistered staff officer or without a staff officer.
(f) A staff officer may not be included in a vessel’s certificate of inspection.

Page 131

§ 8304

TITLE 46—SHIPPING

(g) A registered staff officer serving under this
section who is a member of the Navy Reserve
may wear on the officer’s uniform special distinguishing insignia prescribed by the Secretary of
the Navy.
(h) The uniform stripes, decoration, or other
insignia worn by a staff officer shall be of gold
braid or woven gold or silver material. A crewmember (except a staff officer) may not wear
any uniform with a staff officer’s identifying insignia.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 551; Pub. L.
99–36, § 1(a)(4), May 15, 1985, 99 Stat. 67; Pub. L.
109–163, div. A, title V, § 515(f)(3)(A), Jan. 6, 2006,
119 Stat. 3236.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8302(a)–(d) ....................................
8302(e), (f) ....................................
8302(g) .........................................
8302(h) .........................................

46:242
46:248
46:246(a)
46:245(a)
46:245(b)

Section 8302 sets forth the organization and manning
requirements of the staff department of a vessel. The
staff department has medical and clerical responsibilities.
Subsection (a) applies this section to every United
States vessel except a yacht, a fishing, whaling, or certain types of inland waterway vessel, and a ferry carrying passengers or cars on the Great Lakes. A ferry is a
vessel that primarily carries passengers, cars, or trains
from shore to shore as a means to connect existing
points on a transportation route so that the same type
of transportation mode may continue to be used upon
arrival at either point. Vessels carrying cars as cargo
would not be included in this type of vessel.
Subsection (b) establishes the staff department as a
separate one consisting of registered individuals (pursers, medical doctors, and professional nurses), clerks,
and medical assistants. Subsection (c) divides the department into a medical division and a purser’s division and designates the individual in charge of each division. Subsection (d) prescribes particular requirements of the purser’s division based on size of the vessel or number of individuals employed in the division.
Subsection (e) prohibits the employment or service of
an individual who is not registered or of the grade as
required under this section and prescribes a penalty for
violation of the subsection. This penalty applies to
both the employer and the individual employed. If a
registered staff officer is unavailable at the time of departure for a voyage, the vessel may proceed on its voyage with either an unregistered staff officer or without
a staff officer.
Subsection (f) prohibits including a staff officer on a
vessel’s certificate of inspection.
Subsections (g) and (h) prescribe the type and restrictions for the uniform accouterments of a staff officer.
AMENDMENTS
2006—Subsec. (g). Pub. L. 109–163 substituted ‘‘Navy
Reserve’’ for ‘‘Naval Reserve’’.
1985—Subsec. (b). Pub. L. 99–36 inserted a comma
after ‘‘clerks’’.

§ 8303. Service under licenses issued without examination
An individual issued a license without examination before October 29, 1941, to serve as master, mate, or engineer on a vessel not subject to
inspection under part B of this subtitle, may not
serve under authority of that license on a vessel
that is subject to inspection under part B.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 552.)

HISTORICAL AND REVISION NOTES
Revised section
8303 ..............................................

Source section (U.S. Code)
46:224a

Section 8303 prohibits an individual licensed without
an examination on an uninspected vessel prior to October 29, 1941, from serving as a master, mate, or engineer
on an inspected vessel.

§ 8304. Implementing the Officers’ Competency
Certificates Convention, 1936
(a) In this section, ‘‘high seas’’ means waters
seaward of the Boundary Line.
(b) The Officers’ Competency Certificates Convention, 1936 (International Labor Organization
Draft Convention Numbered 53, on the minimum
requirement of professional capacity for masters
and officers on board merchant vessels), as ratified by the President on September 1, 1938, with
understandings appended, and this section apply
to a documented vessel operating on the high
seas except—
(1) a public vessel;
(2) a wooden vessel of primitive build, such
as a dhow or junk;
(3) a barge; and
(4) a vessel of less than 200 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title.
(c) A person may not engage or employ an individual to serve as, and an individual may not
serve as, a master, mate, or engineer on a vessel
to which this section applies, if the individual
does not have a license issued under section 7101
of this title authorizing service in the capacity
in which the individual is to be engaged or employed.
(d) A person (including an individual) violating this section is liable to the United States
Government for a civil penalty of $100.
(e) A license issued to an individual to whom
this section applies is a certificate of competency.
(f) A designated official may detain a vessel to
which this section applies (by written order
served on the owner, charterer, managing operator, agent, master, or individual in charge of the
vessel) when there is reason to believe that the
vessel is about to proceed from a port of the
United States to the high seas in violation of
this section or a provision of the convention described in subsection (b) of this section. The vessel may be detained until the vessel complies
with this section. Clearance may not be granted
to a vessel ordered detained under this section.
(g) A foreign vessel to which the convention
described in subsection (b) of this section applies, on the navigable waters of the United
States, is subject to detention under subsection
(f) of this section, and to an examination that
may be necessary to decide if there is compliance with the convention.
(h) The owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
detained under subsection (f) or (g) of this section may appeal the order within 5 days as provided by regulation.
(i) An officer or employee of the Customs
Service may be designated to enforce this section.

§ 8501

TITLE 46—SHIPPING

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 552; Pub. L.
104–324, title VII, § 730, Oct. 19, 1996, 110 Stat.
3940.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8304 ..............................................

46:224a
46:241

Section 8304 implements the Officers’ Competency
Certificates Convention, 1936, as ratified by the President on September 1, 1938, with understandings appended.
Subsection (a) defines ‘‘high seas’’ for this section.
Subsection (b) implements the Convention, applies the
Convention to United States vessels on the high seas,
and exempts certain vessels.
Subsection (c) prohibits the employment or service of
an individual as a master, mate, or engineer on a vessel
under this section unless the individual has a license issued under section 7101 for the particular capacity in
which the individual is employed.
Subsection (d) prescribes a civil penalty for violating
this section.
Subsection (e) states that the license referred to in
subsection (c) is a certificate of competency for purposes of the Convention.
Subsection (f) provides for the detention of a vessel in
violation of this section or the Convention.
Subsection (g) applies the detention provision to a
foreign vessel on the navigable waters of the United
States and subjects it to an examination for compliance with the Convention.
Subsection (h) provides for an appeal of the detention
order.
Subsection (i) permits the designation of a Customs
Service officer or employee to enforce this section.
REFERENCES IN TEXT
The Officers’ Competency Certificates Convention,
1936, referred to in subsec. (b), is set out in 54 Stat. Pt.
2, p. 1683.
AMENDMENTS
1996—Subsec. (b)(4). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘200 gross tons’’.
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the
Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.

CHAPTER 85—PILOTS
Sec.

8501.
8502.
8503.

State regulation of pilots.
Federal pilots required.
Federal pilots authorized.
HISTORICAL AND REVISION NOTES

Chapter 85 provides for State pilotage to be regulated
by the States and only in conformity with the laws of
the States. It clearly spells out the preeminence of the
State’s role in regulating pilots for vessels operating on
the bays, rivers, harbors, and ports of the United
States. However, those vessels that are required to
have a Federally licensed pilot, those that operate on
waters outside the territorial sea of the United States,

Page 132

and those that operate on waters of the Great Lakes
are not subject to State pilotage laws or requirements.
In essence this chapter, with minor changes, confirms
the State and Federal relationship with respect to
pilotage that has evolved since the founding of the Nation.
This chapter permits the continuation of Federal
pilotage requirements for vessels that are not required
to obtain compulsory State pilotage. It confirms the
practice of allowing anyone with a Federal pilotage endorsement for the waters in which the vessel is operating to be in control of a vessel when engaged in the
coastwide trade. It also confirms the practice of using
Federal pilots that are often organized into groups or
working organizations who offer their expertise and
services to vessels that are not required to obtain compulsory State pilotage.
AMENDMENTS
1984—Pub. L. 98–557, § 29(f)(3)(B), Oct. 30, 1984, 98 Stat.
2874, added item 8503.

§ 8501. State regulation of pilots
(a) Except as otherwise provided in this subtitle, pilots in the bays, rivers, harbors, and
ports of the United States shall be regulated
only in conformity with the laws of the States.
(b) The master of a vessel entering or leaving
a port on waters that are a boundary between 2
States, and that is required to have a pilot
under this section, may employ a pilot licensed
or authorized by the laws of either of the 2
States.
(c) A State may not adopt a regulation or provision that discriminates in the rate of pilotage
or half-pilotage between vessels sailing between
the ports of one State and vessels sailing between the ports of different States, or against
vessels because of their means of propulsion, or
against public vessels of the United States.
(d) A State may not adopt a regulation or provision that requires a coastwise vessel to take a
pilot licensed or authorized by the laws of a
State if the vessel—
(1) is propelled by machinery and subject to
inspection under part B of this subtitle; or
(2) is subject to inspection under chapter 37
of this title.
(e) Any regulation or provision violating this
section is void.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 553; Pub. L.
98–557, § 29(e), Oct. 30, 1984, 98 Stat. 2874.)
HISTORICAL AND REVISION NOTES
Revised section
8501(a)
8501(b)
8501(c),
8501(d)

.........................................
.........................................
(e) ...................................
.........................................

Source section (U.S. Code)
46:211
46:212
46:213
46:215

Section 8501 establishes the general proposition that
the States regulate pilots in the bays, rivers, harbors,
and ports of the United States, unless otherwise specifically provided by law.
Subsection (a) states this general proposition and
uses the word ‘‘only’’ for emphasis on this point. Further, except as specifically provided in law, the Committee intends that this chapter not be construed to
annul or affect any regulation established by the laws
of a State requiring a vessel entering or leaving a port
in that State to employ a pilot licensed or authorized
by the laws of that State. In at least two places in current law, this general proposition is stated in both a
positive and negative manner. The Committee intends

Page 133

§ 8502

TITLE 46—SHIPPING

to consolidate those separate statements into one provision to avoid ambiguity and redundancy.
Subsections (b) and (c) contain provisions regarding
pilotage in waters between two States.
Subsection (d) prohibits a State from requiring a
State licensed pilot on certain coastwise vessels.
Subsection (e) voids any regulation or provision violating this section.
AMENDMENTS
1984—Subsec. (a). Pub. L. 98–557 substituted ‘‘subtitle’’ for ‘‘part’’.

§ 8502. Federal pilots required
(a) Except as provided in subsections (g) and
(i) of this section, a coastwise seagoing vessel
shall be under the direction and control of a
pilot licensed under section 7101 of this title if
the vessel is—
(1) not sailing on register;
(2) underway;
(3) not beyond 3 nautical miles from the
baselines from which the territorial sea of the
United States is measured; and
(4)(A) propelled by machinery and subject to
inspection under part B of this subtitle; or
(B) subject to inspection under chapter 37 of
this title.
(b) The fees charged for pilotage by pilots required under this section may not be more than
the customary or legally established rates in the
States in which the pilotage is performed.
(c) A State or political subdivision of a State
may not impose on a pilot licensed under this
subtitle an obligation to procure a State or
other license, or adopt any other regulation that
will impede the pilot in the performance of the
pilot’s duties under the laws of the United
States.
(d) A State or political subdivision of a State
may not levy pilot charges on a vessel lawfully
piloted by a pilot required under this section.
(e) The owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
operated in violation of this section or a regulation prescribed under this section is liable to the
United States Government for a civil penalty of
$10,000. The vessel also is liable in rem for the
penalty.
(f) An individual serving as a pilot without
having a license required by this section or a
regulation prescribed under this section is liable
to the Government for a civil penalty of $10,000.
(g)(1) The Secretary shall designate by regulation the areas of the approaches to and waters of
Prince William Sound, Alaska, if any, on which
a vessel subject to this section is not required to
be under the direction and control of a pilot licensed under section 7101 of this title.
(2) In any area of Prince William Sound, Alaska, where a vessel subject to this section is required to be under the direction and control of
a pilot licensed under section 7101 of this title,
the pilot may not be a member of the crew of
that vessel and shall be a pilot licensed by the
State of Alaska who is operating under a Federal license, when the vessel is navigating waters between 60°49′ North latitude and the Port
of Valdez, Alaska.
(h) The Secretary shall designate waters on
which tankers over 1,600 gross tons subject to

this section shall have on the bridge a master or
mate licensed to direct and control the vessel
under section 7101(c)(1) of this title who is separate and distinct from the pilot required under
subsection (a) of this section.
(i)(1) Except as provided in paragraph (2), a
dredge to which this section would otherwise
apply is exempt from the requirements of this
section.
(2) If the Secretary determines, after notice
and comment, that the exemption under paragraph (1) creates a hazard to navigational safety
in a specified area, the Secretary may require
that a dredge exempted by paragraph (1) which
is operating in that area shall comply with this
section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 553; Pub. L.
98–557, § 29(f)(1), (2), Oct. 30, 1984, 98 Stat. 2874;
Pub. L. 99–307, § 1(13), May 19, 1986, 100 Stat. 446;
Pub. L. 101–380, title IV, §§ 4116(a), (b), 4302(g),
Aug. 18, 1990, 104 Stat. 522, 539; Pub. L. 101–595,
title III, § 307, Nov. 16, 1990, 104 Stat. 2985; Pub.
L. 105–383, title III, § 301(b)(7), Nov. 13, 1998, 112
Stat. 3417.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8502 ..............................................

46:215
46:364
46:391a
46:497

Section 8502 sets forth the provisions and requirements for pilots licensed under section 7101. It is an exception provided by law envisioned under section
8501(a).
Subsection (a) applies the requirement for a Federal
pilot to coastwise seagoing vessels if propelled by machinery and inspected under part B or if inspected
under chapter 37, including a tank barge. The section
has been carefully worded to clearly set out those vessels that are required at times to have a Federal pilot.
Subsection (b) prohibits Federal pilot fees from being
higher than those required for State pilots. Subsections
(c) and (d) prohibit States from imposing impediments
to the proper performance of, or levying charges related to, Federal pilotage.
Subsections (e) and (f) prescribe civil penalties for
violation of this section.
AMENDMENTS
1998—Subsec. (a)(3). Pub. L. 105–383 substituted ‘‘not
beyond 3 nautical miles from the baselines from which
the territorial sea of the United States is measured’’
for ‘‘not on the high seas’’.
1990—Subsec. (a). Pub. L. 101–595, § 307(1), substituted
‘‘subsections (g) and (i)’’ for ‘‘subsection (g)’’ in introductory provisions.
Subsecs. (e), (f). Pub. L. 101–380, § 4302(g), substituted
‘‘$10,000’’ for ‘‘$500’’.
Subsec. (g). Pub. L. 101–380, § 4116(a), amended subsec.
(g) generally. Prior to amendment, subsec. (g) read as
follows: ‘‘The Secretary shall designate by regulation
the areas of the approaches to and waters of Prince
William Sound, Alaska, on which a vessel subject to
this section is not required to be under the direction
and control of a pilot licensed under section 7101 of this
title.’’
Subsec. (h). Pub. L. 101–380, § 4116(b), added subsec.
(h).
Subsec. (i). Pub. L. 101–595, § 307(2), added subsec. (i).
1986—Subsec. (a)(4)(A). Pub. L. 99–307 substituted
‘‘part’’ for ‘‘Part’’.
1984—Subsec. (a). Pub. L. 98–557, § 29(f)(1), amended
subsec. (a) generally, which prior to amendment read as
follows: ‘‘A coastwise seagoing vessel, when not sailing

§ 8503

TITLE 46—SHIPPING

on register and when underway (except on the high
seas), shall be under the direction and control of a pilot
licensed under section 7101 of this title if the vessel is—
‘‘(1) propelled by machinery and subject to inspection under part B of this subtitle; or
‘‘(2) subject to inspection under chapter 37 of this
title.’’
Subsec. (g). Pub. L. 98–557, § 29(f)(2), added subsec. (g).
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

§ 8503. Federal pilots authorized
(a) The Secretary may require a pilot licensed
under section 7101 of this title on a self-propelled vessel when a pilot is not required by
State law and the vessel is—
(1) engaged in foreign commerce; and
(2) operating—
(A) in internal waters of the United States;
or
(B) within 3 nautical miles from the baselines from which the territorial sea of the
United States is measured.
(b) A requirement prescribed under subsection
(a) of this section is terminated when the State
having jurisdiction over the area involved—
(1) establishes a requirement for a State licensed pilot; and
(2) notifies the Secretary of that fact.
(c) For the Saint Lawrence Seaway, the Secretary may not delegate the authority under
this section to an agency except the Saint Lawrence Seaway Development Corporation.
(d) A person violating this section or a regulation prescribed under this section is liable to the
United States Government for a civil penalty of
not more than $25,000. Each day of a continuing
violation is a separate violation. The vessel also
is liable in rem for the penalty.
(e) A person that knowingly violates this section or a regulation prescribed under this section commits a class D felony.
(Added Pub. L. 98–557, § 29(f)(3)(A), Oct. 30, 1984,
98 Stat. 2874; amended Pub. L. 101–380, title IV,
§ 4302(h), Aug. 18, 1990, 104 Stat. 539; Pub. L.
105–383, title III, § 301(b)(8), Nov. 13, 1998, 112
Stat. 3417.)
AMENDMENTS
1998—Subsec. (a)(2). Pub. L. 105–383 added par. (2) and
struck out former par. (2) which read as follows: ‘‘operating on the navigable waters of the United States.’’
1990—Subsec. (e). Pub. L. 101–380 substituted ‘‘commits a class D felony’’ for ‘‘shall be fined not more than
$50,000, imprisoned for not more than five years, or
both’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

Page 134

TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

CHAPTER 87—UNLICENSED PERSONNEL
Sec.

8701.
8702.
8703.
8704.

Merchant mariners’ documents required.
Certain crew requirements.
Tankermen on tank vessels.
Alien deemed to be employed in the United
States.
HISTORICAL AND REVISION NOTES

Chapter 87 prescribes certain requirements for unlicensed personnel on vessels of at least 100 gross tons
and on certain tank vessels.
AMENDMENTS
1988—Pub. L. 100–239, § 5(f)(2), Jan. 11, 1988, 101 Stat.
1781, added item 8704.

§ 8701. Merchant mariners’ documents required
(a) This section applies to a merchant vessel of
at least 100 gross tons as measured under section
14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of
this title except—
(1) a vessel operating only on rivers and
lakes (except the Great Lakes);
(2) a barge (except a seagoing barge or a
barge to which chapter 37 of this title applies);
(3) a fishing, fish tender, or whaling vessel or
a yacht;
(4) a sailing school vessel with respect to
sailing school instructors and sailing school
students;
(5) an oceanographic research vessel with respect to scientific personnel;
(6) a fish processing vessel entered into service before January 1, 1988, and not more than
1,600 gross tons as measured under section
14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title or entered into service after
December 31, 1987, and having not more than
16 individuals on board primarily employed in
the preparation of fish or fish products;
(7) a fish processing vessel (except a vessel to
which clause (6) of this subsection applies)
with respect to individuals on board primarily
employed in the preparation of fish or fish
products or in a support position not related
to navigation;
(8) a mobile offshore drilling unit with respect to individuals, other than crew members
required by the certificate of inspection, engaged on board the unit for the sole purpose of
carrying out the industrial business or function of the unit;
(9) a passenger vessel not engaged in a foreign voyage with respect to individuals on
board employed for a period of not more than
30 service days within a 12 month period as entertainment personnel, with no duties, including emergency duties, related to the navigation of the vessel or the safety of the vessel,
its crew, cargo or passengers; and
(10) the Secretary may prescribe the individuals required to hold a merchant mariner’s

Page 135

TITLE 46—SHIPPING

document serving onboard an oil spill response
vessel.
(b) A person may not engage or employ an individual, and an individual may not serve, on
board a vessel to which this section applies if
the individual does not have a merchant mariner’s document issued to the individual under
section 7302 of this title. Except for an individual required to be licensed or registered under
this part, the document must authorize service
in the capacity for which the holder of the document is engaged or employed.
(c) On a vessel to which section 10306 or 10503
of this title does not apply, an individual required by this section to hold a merchant mariner’s document must exhibit it to the master of
the vessel before the individual may be employed.
(d) A person (including an individual) violating this section is liable to the United States
Government for a civil penalty of $500.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 554; Pub. L.
98–364, title IV, § 402(12)(A), July 17, 1984, 98 Stat.
449; Pub. L. 99–640, § 11(c), Nov. 10, 1986, 100 Stat.
3550; Pub. L. 104–324, title VII, § 731, title XI,
§ 1104(e), Oct. 19, 1996, 110 Stat. 3940, 3967; Pub. L.
107–295, title III, § 324(b), Nov. 25, 2002, 116 Stat.
2104.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8701 ..............................................

46:444
46:643
46:643a
46:672

Section 8701 requires an individual to have a merchant mariner’s document before that individual can be
engaged or employed on certain vessels.
Subsection (a) makes this documentation requirement applicable to United States merchant vessels of
at least 100 gross tons except for certain inland vessels
and barges, fishing or whaling vessels, yachts, and, in
certain circumstances, to sailing school vessels or
oceanographic research vessels.
Subsection (b) prohibits the engagement or employment of an individual required to have a document prescribed under section 7302 if the individual does not
have one. Except for licensed or registered individuals,
the document must specify the capacity in which the
individual is engaged or employed.
Subsection (c) requires an individual to exhibit the
required document to the master, if not otherwise required to do so in some other manner before that individual may be employed.
Subsection (d) prescribes the penalty for violation of
this section.
AMENDMENTS
2002—Subsec. (a)(9), (10). Pub. L. 107–295 added par. (9)
and redesignated former par. (9) as (10).
1996—Subsec. (a). Pub. L. 104–324, § 731(1), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘100 gross tons’’ in introductory provisions.
Subsec. (a)(6). Pub. L. 104–324, § 731(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘1,600 gross tons’’.
Subsec. (a)(9). Pub. L. 104–324, § 1104(e), added par. (9).
1986—Subsec. (a)(8). Pub. L. 99–640 added par. (8).
1984—Subsec. (a)(3). Pub. L. 98–364, § 402(12)(A)(i), substituted ‘‘fishing, fish tender, or whaling’’ for ‘‘fishing
or whaling’’.

§ 8702

Subsec. (a)(6), (7). Pub. L. 98–364, § 402(12)(A)(ii)– (iv),
added pars. (6) and (7).

§ 8702. Certain crew requirements
(a) This section applies to a vessel of at least
100 gross tons as measured under section 14502 of
this title, or an alternate tonnage measured
under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title
except—
(1) a vessel operating only on rivers and
lakes (except the Great Lakes);
(2) a barge (except a seagoing barge or a
barge to which chapter 37 of this title applies);
(3) a fishing, fish tender, or whaling vessel
(except a fish tender vessel engaged in the
Aleutian trade) or a yacht;
(4) a sailing school vessel with respect to
sailing school instructors and sailing school
students;
(5) an oceanographic research vessel with respect to scientific personnel;
(6) a fish processing vessel entered into service before January 1, 1988, and not more than
1,600 gross tons as measured under section
14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title or entered into service after
December 31, 1987, and having not more than
16 individuals on board primarily employed in
the preparation of fish or fish products; and
(7) a fish processing vessel (except a vessel to
which clause (6) of this subsection applies)
with respect to individuals on board primarily
employed in the preparation of fish or fish
products or in a support position not related
to navigation.
(b) A vessel may operate only if at least—
(1) 75 percent of the crew in each department
on board is able to understand any order spoken by the officers, and
(2) 65 percent of the deck crew (excluding licensed individuals) have merchant mariners’
documents endorsed for a rating of at least
able seaman, except that this percentage may
be reduced to 50 percent—
(i) on a vessel permitted under section 8104
of this title to maintain a 2-watch system;
or
(ii) on a fish tender vessel engaged in the
Aleutian trade.
(c) An able seaman is not required on a towing
vessel operating on bays and sounds connected
directly with the seas.
(d) An individual having a rating of less than
able seaman may not be permitted at the wheel
in ports, harbors, and other waters subject to
congested vessel traffic, or under conditions of
reduced visibility, adverse weather, or other
hazardous circumstances.
(e) The owner, charterer, managing operator,
agent, master, or individual in charge of a vessel
operated in violation of this section or a regulation prescribed under this section is liable to the
United States Government for a civil penalty of
$10,000.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 554; Pub. L.
98–364, title IV, § 402(12)(B), July 17, 1984, 98 Stat.
449; Pub. L. 100–239, § 5(e), Jan. 11, 1988, 101 Stat.

§ 8703

TITLE 46—SHIPPING

1781; Pub. L. 101–380, title IV, § 4302(i), Aug. 18,
1990, 104 Stat. 539; Pub. L. 101–595, title VI,
§ 602(e)(2), Nov. 16, 1990, 104 Stat. 2992; Pub. L.
104–324, title VII, § 732, Oct. 19, 1996, 110 Stat.
3941.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8702 ..............................................

46:643
46:672

Section 8702 specifies certain crew requirements.
Subsection (a) applies this section to the same vessels to which section 8701 applies.
Subsection (b) requires that 75 percent of the crew in
each department on board a vessel understand any
order spoken by the officers and that 65 percent of the
deck crew be at least able seamen, except for the licensed officers. For 2-watch system vessels under section 8104, the 65-percent deck crew requirement may be
reduced to 50 percent.
Subsection (c) exempts certain inland towing vessels
from the able seaman requirement.
Subsection (d) prohibits anyone having a rating of
less than able seamen from serving as a helmsman in
congested vessel traffic or under hazardous conditions.
Subsection (e) prescribes the penalty for violation of
this section.

Page 136

oil or hazardous material in bulk as cargo or
cargo residue, shall have a specified number of
the crew certified as tankermen as required by
the Secretary. This requirement shall be noted
on the certificate of inspection issued to the vessel.
[(b) Repealed. Pub. L. 98–557, § 18, Oct. 30, 1984,
98 Stat. 2869.]
(c) A vessel to which section 3702(b) of this
title applies shall have on board as a crewmember in charge of the transfer operation an
individual certified as a tankerman (qualified
for the grade of fuel transferred), unless a master, mate, pilot, engineer, or operator licensed
under section 7101 of this title is present in
charge of the transfer. If the vessel does not
have that individual on board, chapter 37 of this
title applies to the vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 555; Pub. L.
98–557, § 18, Oct. 30, 1984, 98 Stat. 2869.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8703(a) .........................................
8703(b) .........................................
8703(c) .........................................

46:391a(10)(A)
46:391a(10)(C)
46:391a(4)(B)

AMENDMENTS
1996—Subsec. (a). Pub. L. 104–324, § 732(1), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘100 gross tons’’ in introductory provisions.
Subsec. (a)(6). Pub. L. 104–324, § 732(2), inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘1,600 gross tons’’.
1990—Subsec. (a)(3). Pub. L. 101–595, § 602(e)(2)(A), substituted ‘‘vessel (except a fish tender vessel engaged in
the Aleutian trade)’’ for ‘‘vessel’’.
Subsec. (b)(2). Pub. L. 101–595, § 602(e)(2)(B), inserted
provisions authorizing reduction to 50 percent of the
deck crew in the case of a fish tender vessel engaged in
the Aleutian trade.
Subsec. (e). Pub. L. 101–380 substituted ‘‘$10,000’’ for
‘‘$500’’.
1988—Subsec. (b). Pub. L. 100–239 substituted ‘‘operate’’ for ‘‘depart from a port of the United States’’.
1984—Subsec. (a)(3). Pub. L. 98–364, § 402(12)(B)(i), substituted ‘‘fishing, fish tender, or whaling’’ for ‘‘fishing
or whaling’’.
Subsec. (a)(6), (7). Pub. L. 98–364, § 402(12)(B)(ii)– (iv),
added pars. (6) and (7).
EFFECTIVE DATE OF 1990 AMENDMENTS
Amendment by section 602(e)(2)(A) of Pub. L. 101–595
effective Nov. 16, 1990, and requirements imposed by
subsec. (b)(2), as amended by section 602(e)(2)(B) of Pub.
L. 101–595, effective 1 year after Nov. 16, 1990, see section 602(f) of Pub. L. 101–595, set out as a note under
section 4502 of this title.
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

Section 8703 sets requirements for tankermen on
board vessels carrying oil or hazardous material in
bulk as cargo or cargo residue.
Subsection (a) requires a specified number of the
crew certified as tankermen on board these vessels and
a notation be made to that effect on the vessel’s certificate of inspection. A tankerman is an individual who is
experienced and trained in the procedures for transferring oil or hazardous material to or from a vessel and
is responsible for carrying out these duties and responsibilities.
Subsection (b) authorizes the Secretary to regulate
tankermen and restrict the types of oil or hazardous
materials on the basis of safety to the vessel and the
marine environment.
Subsection (c) requires a tankerman or licensed master, pilot, engineer, or operator to be present and in
charge of a transfer of oil or hazardous material on certain vessels in the service of oil exploitation. If this individual is not on board, then the tank vessel requirements of chapter 37 apply to the vessel.
AMENDMENTS
1984—Subsec. (b). Pub. L. 98–557 repealed subsec. (b)
which contained duplicate tankerman manning requirements. See section 7317(a) of this title.

§ 8704. Alien deemed to be employed in the
United States

§ 8703. Tankermen on tank vessels

An alien is deemed to be employed in the
United States for purposes of section 274A of the
Immigration and Nationality Act (8 U.S.C.
1324a) if the alien is an unlicensed individual
employed on a fishing, fish processing, or fish
tender vessel that—
(1) is a vessel of the United States engaged
in the fisheries in the navigable waters of the
United States or the exclusive economic zone;
and
(2) is not engaged in fishing exclusively for
highly migratory species (as that term is defined in section 3 of the Magnuson-Stevens
Fishery Conservation and Management Act (16
U.S.C. 1802).

(a) A vessel of the United States to which
chapter 37 of this title applies, that has on board

(Added Pub. L. 100–239, § 5(f)(1), Jan. 11, 1988, 101
Stat. 1781; amended Pub. L. 104–208, div. A, title

EXEMPTION OF CERTAIN FISH PROCESSING VESSELS
Certain fish processing vessels exempt from crew requirements of subsec. (b) of this section, see section
403(b) of Pub. L. 98–364, as amended, set out as a note
under section 3302 of this title.

Page 137

I, § 101(a) [title II, § 211(b)], Sept. 30, 1996, 110
Stat. 3009, 3009–41.)
AMENDMENTS
1996—Par. (2). Pub. L. 104–208 substituted ‘‘MagnusonStevens Fishery’’ for ‘‘Magnuson Fishery’’.
EFFECTIVE DATE OF 1996 AMENDMENT
Pub. L. 104–208, div. A, title I, § 101(a) [title II,
§ 211(b)], Sept. 30, 1996, 110 Stat. 3009, 3009–41, provided
that the amendment made by that section is effective
15 days after Oct. 11, 1996.
CONSTRUCTION
Pub. L. 100–239, § 5(f)(3), Jan. 11, 1988, 101 Stat. 1781,
provided that: ‘‘With respect to an alien who is deemed
to be employed in the United States under section 8704
of title 46, United States Code (as amended by this subsection), the term ‘date of the enactment of this section’ [translated as ‘‘November 6, 1986’’] as used in section 274A(i) of the Immigration and Nationality Act
[former 8 U.S.C. 1324a(i)] means the date 180 days after
the enactment of this section [Jan. 11, 1988].’’

CHAPTER 89—SMALL VESSEL MANNING
Sec.

8901.
8902.
8903.
8904.
8905.
8906.

§ 8904

TITLE 46—SHIPPING

Freight vessels.
Small passenger vessels.
Self-propelled, uninspected passenger vessels.
Towing vessels.
Exemptions.
Penalty.
HISTORICAL AND REVISION NOTES

Chapter 89 provides for the manning of freight vessels, small passenger vessels, uninspected passenger
vessels, and towing vessels. It permits a licensed operator to be in charge of a vessel in lieu of a licensed master or pilot. It also sets forth exemption and civil penalties.
AMENDMENTS
1986—Pub. L. 99–307, § 1(14)(A), May 19, 1986, 100 Stat.
446, substituted ‘‘Self-propelled, uninspected’’ for ‘‘Uninspected’’ in item 8903.

§ 8901. Freight vessels
A freight vessel of less than 100 gross tons as
measured under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary under
section 14104 of this title shall be operated by an
individual licensed by the Secretary to operate
that type of vessel in the particular geographic
area, under prescribed regulations.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 555; Pub. L.
104–324, title VII, § 733, Oct. 19, 1996, 110 Stat.
3941.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8901 ..............................................

46:390b

Section 8901 requires that a freight vessel of less than
100 gross tons be operated by a licensed individual for
that type vessel and for a particular geographic area.

§ 8902. Small passenger vessels
A small passenger vessel shall be operated by
an individual licensed by the Secretary to operate that type of vessel in the particular geographic area, under prescribed regulations.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 555.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8902 ..............................................

46:390b

Section 8902 requires that a small passenger vessel of
less than 100 gross tons be operated by a licensed individual for that type vessel and for a particular geographic area.

§ 8903. Self-propelled, uninspected passenger vessels
A self-propelled, uninspected passenger vessel
shall be operated by an individual licensed by
the Secretary to operate that type of vessel,
under prescribed regulations.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 555; Pub. L.
99–307, § 1(14)(B), (C), May 19, 1986, 100 Stat. 446.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8903 ..............................................

46:1461(e), (f)

Section 8903 requires that an uninspected passenger
vessel be operated by a licensed individual for that type
of vessel.
AMENDMENTS
1986—Pub. L. 99–307 substituted ‘‘Self-propelled, uninspected’’ for ‘‘Uninspected’’ in section catchline and
‘‘A self-propelled,’’ for ‘‘An’’ in text.

§ 8904. Towing vessels
(a) A towing vessel that is at least 26 feet in
length measured from end to end over the deck
(excluding sheer), shall be operated by an individual licensed by the Secretary to operate that
type of vessel in the particular geographic area,
under prescribed regulations.
(b) A vessel that tows a disabled vessel for
consideration shall be operated by an individual
licensed by the Secretary to operate that type of
vessel in the particular geographic area, under
prescribed regulations.
(c) The Secretary may prescribe by regulation
requirements for maximum hours of service (including recording and recordkeeping of that
service) of individuals engaged on a towing vessel that is at least 26 feet in length measured
from end to end over the deck (excluding the
sheer).
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 555; Pub. L.
99–640, § 12(a), Nov. 10, 1986, 100 Stat. 3550; Pub. L.
108–293, title IV, § 409(a), Aug. 9, 2004, 118 Stat.
1044.)
HISTORICAL AND REVISION NOTES

AMENDMENTS

Revised section

1996—Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by
the Secretary under section 14104 of this title’’ after
‘‘100 gross tons’’.

8904 ..............................................

Source section (U.S. Code)
46:405(b)(2)

Section 8904 requires that a 26-foot or larger towing
vessel be operated by a licensed individual for that type
of vessel and for a particular geographic area.

§ 8905

TITLE 46—SHIPPING
AMENDMENTS

2004—Subsec. (c). Pub. L. 108–293 added subsec. (c).
1986—Pub. L. 99–640 designated existing provisions as
subsec. (a) and added subsec. (b).
EFFECTIVE DATE OF 1986 AMENDMENT
Pub. L. 99–640, § 12(b), Nov. 10, 1986, 100 Stat. 3551, provided that: ‘‘The amendments made by subsection (a) of
this section [amending this section] shall take effect on
January 1, 1988.’’

operated in violation of this chapter or a regulation prescribed under this chapter is liable to
the United States Government for a civil penalty of not more than $25,000. The vessel also is
liable in rem for the penalty.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 556; Pub. L.
104–324, title III, § 306(b), Oct. 19, 1996, 110 Stat.
3918.)
HISTORICAL AND REVISION NOTES

DEMONSTRATION PROJECT
Pub. L. 108–293, title IV, § 409(b), Aug. 9, 2004, 118 Stat.
1045, provided that: ‘‘Prior to prescribing regulations
under this section [amending this section] the Secretary shall conduct and report to the Congress on the
results of a demonstration project involving the implementation of Crew Endurance Management Systems on
towing vessels. The report shall include a description of
the public and private sector resources needed to enable implementation of Crew Endurance Management
Systems on all United States-flag towing vessels.’’

Page 138

Revised section

Source section (U.S. Code)

8906 ..............................................

46:390d

Section 8906 prescribes the penalties for violations of
this chapter.
AMENDMENTS
1996—Pub. L. 104–324 substituted ‘‘not more than
$25,000’’ for ‘‘$1,000’’.

CHAPTER 91—TANK VESSEL MANNING
STANDARDS

§ 8905. Exemptions
(a) Section 8903 of this title applies to a recreational vessel operated in dealer demonstrations only if the Secretary decides that the application of section 8903 is necessary for recreational vessel safety under section 4302(d) of
this title.
(b) Section 8904 of this title does not apply to
an oil spill response vessel while engaged in oil
spill response or training activities.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 556; Pub. L.
104–324, title VII, § 734, title XI, § 1104(f), Oct. 19,
1996, 110 Stat. 3941, 3967; Pub. L. 111–281, title VI,
§ 606, Oct. 15, 2010, 124 Stat. 2967.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

8905(a) .........................................
8905(b) .........................................

46:1461(f)
46:405(b)(3)

Section 8905 provides for certain exemptions from the
requirements of this chapter.
Subsection (a) exempts dealer demonstration recreational vessels from the licensed operator requirement in section 8903 unless the Secretary decides that
safety considerations require the application of that
section.
Subsection (b) exempts an offshore supply vessel of
less than 200 gross tons from the licensed operator requirement under section 8904 when used in the offshore
mineral and oil industry.

Sec.

9101.
9102.

Standards for foreign tank vessels.
Standards for tank vessels of the United
States.
HISTORICAL AND REVISION NOTES

Chapter 91 prescribes manning standards for certain
foreign and United States tank vessels carrying oil or
hazardous materials.

§ 9101. Standards for foreign tank vessels
(a)(1) The Secretary shall evaluate the manning, training, qualification, and watchkeeping
standards of a foreign country that issues documentation for any vessel to which chapter 37 of
this title applies—
(A) on a periodic basis; and
(B) when the vessel is involved in a marine
casualty required to be reported under section
6101(a)(4) or (5) of this title.
(2) After each evaluation made under paragraph (1) of this subsection, the Secretary shall
determine whether—
(A) the foreign country has standards for licensing and certification of seamen that are at
least equivalent to United States law or international standards accepted by the United
States; and
(B) those standards are being enforced.

§ 8906. Penalty

(3) If the Secretary determines under this subsection that a country has failed to maintain or
enforce standards at least equivalent to United
States law or international standards accepted
by the United States, the Secretary shall prohibit vessels issued documentation by that
country from entering the United States until
the Secretary determines those standards have
been established and are being enforced.
(4) The Secretary may allow provisional entry
of a vessel prohibited from entering the United
States under paragraph (3) of this subsection if—
(A) the owner or operator of the vessel establishes, to the satisfaction of the Secretary,
that the vessel is not unsafe or a threat to the
marine environment; or
(B) the entry is necessary for the safety of
the vessel or individuals on the vessel.

An owner, charterer, managing operator,
agent, master, or individual in charge of a vessel

(b) A foreign vessel to which chapter 37 of this
title applies that has on board oil or hazardous

AMENDMENTS
2010—Subsecs. (b), (c). Pub. L. 111–281 redesignated
subsec. (c) as (b) and struck out former subsec. (b)
which read as follows: ‘‘Section 8904 of this title does
not apply to a vessel of less than 200 gross tons as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title engaged in the offshore mineral and oil industry if the vessel has offshore mineral and oil industry
sites or equipment as its ultimate destination or place
of departure.’’
1996—Subsec. (b). Pub. L. 104–324, § 734, inserted ‘‘as
measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104 of
this title’’ after ‘‘200 gross tons’’.
Subsec. (c). Pub. L. 104–324, § 1104(f), added subsec. (c).

Page 139

§ 9102

TITLE 46—SHIPPING

material in bulk as cargo or cargo residue shall
have a specified number of personnel certified as
tankerman or equivalent, as required by the
Secretary, when the vessel transfers oil or hazardous material in a port or place subject to the
jurisdiction of the United States. The requirement of this subsection shall be noted in applicable terminal operating procedures. A transfer
operation may take place only if the crewmember in charge is capable of clearly understanding instructions in English.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 556; Pub. L.
101–380, title IV, § 4106(a), Aug. 18, 1990, 104 Stat.
513.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

9101(a) .........................................
9101(b) .........................................

46:391a(11)
46:391a(10)(B)

Section 9101 requires monitoring of manning standards for foreign tank vessels operating on the navigable
waters of the United States and transferring oil or hazardous material in the United States.
Subsection (a) requires the Secretary of Transportation to evaluate the manning, training, qualification,
and watchkeeping standards of foreign countries whose
tank vessels operate on United States waters, or use
transfer facilities, and to decide if the standards are
equivalent or more stringent than United States standards.
Subsection (b) authorizes the Secretary to specify the
number of tankermen required on a foreign tank vessel
and to have certified tankermen who can understand
English when transferring oil or hazardous material in
the United States. This requirement is to be made part
of the terminal operating procedures.

(2) instruction in vessel and cargo handling
and vessel navigation in emergency situations
and under marine casualty or potential casualty conditions;
(3) qualifications for licenses by specific
type and size of vessels;
(4) qualifications for licenses by use of simulators for the practice or demonstration of
marine-oriented skills;
(5) minimum health and physical fitness criteria for various grades of licenses and certificates;
(6) periodic retraining and special training
for upgrading positions, changing vessel type
or size, or assuming new responsibilities;
(7) decisions about licenses and certificates,
conditions of licensing or certification, and periods of licensing or certification by reference
to experience, amount of training completed,
and regular performance testing; and
(8) instruction in vessel maintenance functions.
(b) The Secretary shall waive the application
of criteria required by subsection (a)(5) of this
section for an individual having a license or certificate (including a renewal of the license or
certificate) in effect on October 17, 1978. When
the waiver is granted, the Secretary may prescribe conditions for the license or certificate
and its renewal, as the Secretary decides are
reasonable and necessary for the safety of a vessel on which the individual may be employed.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 556; Pub. L.
101–380, title IV, § 4114(d), Aug. 18, 1990, 104 Stat.
517.)

AMENDMENTS
1990—Subsec. (a). Pub. L. 101–380 amended subsec. (a)
generally. Prior to amendment, subsec. (a) read as follows: ‘‘The Secretary shall—
‘‘(1) periodically evaluate the manning, training,
qualification, and watchkeeping standards prescribed
by the certificating country of a foreign vessel to
which chapter 37 of this title applies, that operates
on the navigable waters of the United States and
transfers oil or hazardous material in a port or place
under the jurisdiction of the United States; and
‘‘(2) after each evaluation made under clause (1) of
this subsection, decide whether the foreign country,
whose system for licensing and certification of seamen was evaluated, has standards that are equivalent
to or more stringent than United States standards or
international standards accepted by the United
States.’’

HISTORICAL AND REVISION NOTES
Revised section
9102 ..............................................

§ 9102. Standards for tank vessels of the United
States
(a) The Secretary shall prescribe standards for
the manning of each vessel of the United States
to which chapter 37 of this title applies, related
to the duties, qualifications, and training of the
officers and crew of the vessel, including standards related to—
(1) instruction in vessel and cargo handling
and vessel navigation under normal operating
conditions in coastal and confined waters and
on the high seas;

46:391a(9)

Section 9102 prescribes manning standards for United
States tank vessels.
Subsection (a) requires the Secretary of Transportation to prescribe certain standards for the duties,
qualifications, and training of the officers and crew of
United States tank vessels.
Subsection (b) provides for a waiver of any health and
physical fitness criteria prescribed under subsection
(a).
AMENDMENTS
1990—Par. (8). Pub. L. 101–380 added par. (8).
EFFECTIVE DATE OF 1990 AMENDMENT

EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

Source section (U.S. Code)

Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

CHAPTER 93—GREAT LAKES PILOTAGE
Sec.

9301.
9302.
9303.
9304.
9305.
9306.
9307.
9308.

Definitions.
Great Lakes pilots required.
United States registered pilot service.
Pilotage pools.
Agreements with Canada.
State regulation prohibited.
Great Lakes Pilotage Advisory Committee.
Penalties.
HISTORICAL AND REVISION NOTES

Chapter 93 contains the pilotage requirements for
United States vessels sailing under register and foreign

§ 9301

TITLE 46—SHIPPING

flag vessels operating on the Great Lakes, qualifications for a registered pilot for the Great Lakes, authority for agreements with Canada, prohibition of State
regulation, establishment of an advisory committee,
and imposition of civil penalties.

§ 9301. Definitions
In this chapter—
(1) ‘‘Canadian registered pilot’’ means an individual (except a regular crewmember of a
vessel) who is registered by Canada on the
same basis as an individual registered under
section 9303 of this title.
(2) ‘‘Great Lakes’’ means Lakes Superior,
Michigan, Huron, Erie, and Ontario, their connecting and tributary waters, the Saint Lawrence River as far east as Saint Regis, and adjacent port areas.
(3) ‘‘United States registered pilot’’ means
an individual (except a regular crewmember of
a vessel) who is registered under section 9303
of this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 557.)
HISTORICAL AND REVISION NOTES
Revised section
9301(1) ..........................................
9301(2) ..........................................
9301(3) ..........................................

Source section (U.S. Code)
46:216(d)
46:216(a)
46:216(c)

Section 9301 contains definitions which pertain to
this chapter only.
Clause (1) defines ‘‘Canadian registered pilot’’ as an
individual registered as a pilot in Canada on the same
basis as the United States.
Clause (2) defines ‘‘Great Lakes’’ as the five lakes
plus their connecting and tributary waters, a certain
part of the Saint Lawrence River, and adjacent ports.
Clause (3) defines ‘‘United States registered pilot’’ as
an individual registered under regulations for competency under section 9303.

§ 9302. Great Lakes pilots required
(a)(1) Except as provided in subsections (d), (e),
and (f) of this section, each vessel of the United
States operating on register and each foreign
vessel shall engage a United States or Canadian
registered pilot for the route being navigated
who shall—
(A) in waters of the Great Lakes designated
by the President, direct the navigation of the
vessel subject to the customary authority of
the master; and
(B) in waters of the Great Lakes not designated by the President, be on board and
available to direct the navigation of the vessel
at the discretion of and subject to the customary authority of the master.
(2) The President shall make water designations under this subsection with regard to the
public interest, the effective use of navigable
waters, marine safety, and the foreign relations
of the United States.
(b) A member of the complement of a vessel of
the United States operating on register or of a
vessel of Canada may serve as the pilot required
on waters not designated by the President if the
member is licensed under section 7101 of this
title, or under equivalent provisions of Canadian
law, to direct the navigation of the vessel on the
waters being navigated.
(c) The authority extended under subsections
(a) and (b) of this section to a Canadian reg-

Page 140

istered pilot or other Canadian licensed officer
to serve on certain vessels in United States waters of the Great Lakes shall continue as long as
Canada extends reciprocity to United States
registered pilots and other individuals licensed
by the United States for pilotage service in Canadian waters of the Great Lakes.
(d) A vessel may be operated on the United
States waters of the Great Lakes without a
United States or Canadian registered pilot
when—
(1) the Secretary notifies the master that a
registered pilot is not available; or
(2) the vessel or its cargo is in distress or
jeopardy.
(e) A Canadian vessel regularly operating on
the Great Lakes or between ports on the Great
Lakes and the Saint Lawrence River, with only
an occasional voyage to ports in the maritime
provinces of Canada in the Canadian coastal
trade, is exempt from subsection (a) of this section as long as Canada permits enrolled vessels
of the United States to be operated on Canadian
waters of the Great Lakes under the direction of
individuals licensed under section 7101 of this
title.
(f) A documented vessel regularly operating on
the Great Lakes or between ports on the Great
Lakes and the St. Lawrence River is exempt
from the requirements of subsection (a) of this
section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 557; Pub. L.
101–380, title IV, § 4108(a), Aug. 18, 1990, 104 Stat.
514; Pub. L. 104–324, title XI, § 1115(b)(5)–(7), Oct.
19, 1996, 110 Stat. 3972.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

9302(a), (b), (d) .............................
9302(c) .........................................

46:216a
46:216f

Section 9302 sets forth the requirements for pilots on
the waters of the Great Lakes under the jurisdiction of
the United States or Canada.
Subsection (a) requires each United States vessel
sailing on register and each foreign vessel to engage a
United States or Canadian registered pilot who shall direct the navigation of the vessel in designated waters
of the Great Lakes or be available to direct the navigation of the vessel in undesignated waters of the Great
Lakes. The President must make the designation with
regard to public interest, effective use of navigable waters, marine safety, and United States foreign relations. The direction of the vessel by an authorized pilot
is subject to the customary authority of the master.
Subsection (b) provides that a crewmember licensed
for Great Lakes navigation under section 7101 or equivalent Canadian law may serve as the pilot on undesignated waters.
Subsection (c) provides for reciprocity of recognizing
United States and Canadian pilots.
Subsections (d) and (e) are exceptions to subsection
(a). Subsection (d) permits operation of a vessel on the
Great Lakes without a registered pilot if notice is
given that one is not available or if the vessel or cargo
is in distress or jeopardy. Subsection (e) exempts a Canadian vessel in the coastwise or Great Lakes trade
from the requirement of having a registered pilot if
similar United States vessels are extended the same exemption by Canada.
AMENDMENTS
1996—Subsec. (a)(1). Pub. L. 104–324, § 1115(b)(5), substituted ‘‘subsections (d), (e), and (f)’’ for ‘‘subsections
(d) and (e)’’.

Page 141

§ 9303

TITLE 46—SHIPPING

Subsec. (e). Pub. L. 104–324, § 1115(b)(6), substituted
‘‘subsection (a)’’ for ‘‘subsections (a) and (b)’’.
Subsec. (f). Pub. L. 104–324, § 1115(b)(7), added subsec.
(f).
1990—Subsec. (b). Pub. L. 101–380 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ‘‘An individual of a vessel licensed for navigation
on the Great Lakes under section 7101 of this title, or
equivalent provisions of Canadian law, and qualified for
the route being navigated, may serve as the pilot required on waters not designated by the President.’’
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.
PROC. NO. 3385. DESIGNATION OF RESTRICTED WATERS
Proc. No. 3385, Dec. 22, 1960, 25 F.R. 13681, as amended
by Proc. No. 3855, June 10, 1968, 33 F.R. 8535, provided:
WHEREAS, pursuant to section 3(a) of the Great
Lakes Pilotage Act of 1960 (Public Law 86–555; 74 Stat.
259) [46 U.S.C. 9302(a)], the President is directed to designate and by proclamation announce those United
States waters of the Great Lakes in which registered
vessels of the United States and foreign vessels shall be
required to have in their service a United States registered pilot or a Canadian registered pilot for the waters concerned; and
WHEREAS the aforesaid section 3(a) [46 U.S.C.
9302(a)] provides that these designations shall be made
with due regard to the public interest, the effective utilization of navigable waters, marine safety, and the foreign relations of the United States:
NOW, THEREFORE, I, DWIGHT D. EISENHOWER,
President of the United States of America, acting
under and by virtue of the authority vested in me by
section 3(a) of the Great Lakes Pilotage Act of 1960 [46
U.S.C. 9302(a)], do hereby designate and proclaim the
following areas in which registered vessels of the
United States and foreign vessels shall be required to
have in their service a United States registered pilot or
a Canadian registered pilot for the waters concerned,
on and after the effective date of regulations issued by
the Secretary of Transportation pursuant to the Act:
(1) District 1. All United States waters of the St. Lawrence River between the international boundary at St.
Regis and a line at the head of the river running (at approximately 127° true) between Carruthers Point Light
and South Side Light extended to the New York shore.
(2) District 2. All United States waters of Lake Erie
westward of a line running (at approximately 026° true)
from Sandusky Pierhead Light at Cedar Point to
Southeast Shoal Light; all waters contained within the
arc of a circle of one mile radius eastward of Sandusky
Pierhead Light; the Detroit River; Lake St. Clair; the
St. Clair River, and northern approaches thereto south
of latitude 43°05′30′′ N.
(3) District 3. All United States waters of the St.
Marys River, Sault Sainte Marie Locks and approaches
thereto between latitude 45°59′ N. at the southern approach and longitude 84°33′ W. at the northern approach.
IN WITNESS WHEREOF, I have hereunto set my
hand and caused the Seal of the United States of America to be affixed.
DONE at the City of Washington this twenty-second
day of December in the year of our Lord nineteen hundred and sixty, and of the Independence
of the United States of America the one hundred and eighty-fifth.
[SEAL]
DWIGHT D. EISENHOWER.

§ 9303. United States registered pilot service
(a) The Secretary shall prescribe by regulation
standards of competency to be met by each ap-

plicant for registration under this chapter. An
applicant must—
(1) have a license as master, mate, or pilot
issued under section 7101 of this title;
(2) have acquired at least 24 months licensed
service or equivalent experience on vessels or
integrated towing vessels and tows of at least
4,000 gross tons as measured under section
14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section
14104 of this title, operating on the Great
Lakes or oceans, with a minimum of 6 months
of that service or experience having been on
the Great Lakes; and
(3) agree that, if appointed as a United
States registered pilot, the applicant will be
available for service when required.
(b) The Secretary shall issue to each registered pilot under this chapter a certificate of
registration describing the areas within which
the pilot may serve. The pilot shall carry the
certificate when in the service of a vessel.
(c) The Secretary shall prescribe by regulation
the duration of validity of registration.
(d) The Secretary may prescribe by regulation
the conditions for service by United States registered pilots, including availability for service.
(e) Subject to sections 551–559 of title 5, the
Secretary may suspend or revoke a certificate of
registration issued under this section if the
holder fails to comply with a regulation prescribed under this chapter. Suspension or revocation of the holder’s license under chapter 77
of this title includes the holder’s certificate of
registration.
(f) The Secretary shall prescribe by regulation
rates and charges for pilotage services, giving
consideration to the public interest and the
costs of providing the services. The Secretary
shall establish new pilotage rates by March 1 of
each year. The Secretary shall establish base
pilotage rates by a full ratemaking at least once
every 5 years and shall conduct annual reviews
of such base pilotage rates, and make adjustments to such base rates, in each intervening
year.
(g) The Secretary shall ensure that a sufficient number of individuals are assigned to carrying out subsection (f).
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 558; Pub. L.
104–324, title VII, § 735, Oct. 19, 1996, 110 Stat.
3941; Pub. L. 109–241, title III, § 302, July 11, 2006,
120 Stat. 527.)
HISTORICAL AND REVISION NOTES
Revised section
9303(a) .........................................
9303(b) .........................................
9303(c) .........................................
9303(e) .........................................
9303(f) ..........................................

Source section (U.S. Code)
46:216b(a)
46:216b(b)
46:216b(c)
46:216b(c)
46:216c

Section 9303 authorizes the Secretary to prescribe
regulatory standards of competency for registered pilots.
Subsection (a) requires an applicant for registration
as a pilot to have a master’s, mate’s, or pilot’s license,
24 months of licensed service, or equivalent, on vessels
on the oceans or Great Lakes, with a minimum of 6
months on the Great Lakes, and agree to be available
for service as a United States registered pilot if appointed.

§ 9304

TITLE 46—SHIPPING

Subsection (b) requires the Secretary to issue a certificate of registration describing the areas of service
of a registered pilot who must carry the certificate
when in a vessel’s service.
Subsection (c) authorizes the Secretary to prescribe
the duration of the validity of registration, while subsection (d) authorizes the Secretary to prescribe conditions for service by United States registered pilots.
Subsection (e) provides for the suspension or revocation of a certificate or registration by the Secretary.
Subsection (f) provides for setting the rates and
charges for pilotage services.
AMENDMENTS
2006—Subsec. (f). Pub. L. 109–241, § 302(1), inserted at
end ‘‘The Secretary shall establish new pilotage rates
by March 1 of each year. The Secretary shall establish
base pilotage rates by a full ratemaking at least once
every 5 years and shall conduct annual reviews of such
base pilotage rates, and make adjustments to such base
rates, in each intervening year.’’
Subsec. (g). Pub. L. 109–241, § 302(2), added subsec. (g).
1996—Subsec. (a)(2). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘4,000 gross tons’’.

§ 9304. Pilotage pools
(a) The Secretary may authorize the formation of a pool by a voluntary association of
United States registered pilots to provide for efficient dispatching of vessels and rendering of
pilotage services.
(b) For pilotage pools, the Secretary may—
(1) limit the number of the pools;
(2) prescribe regulations for their operation
and administration;
(3) prescribe a uniform system of accounts;
(4) perform audits and inspections; and
(5) require coordination on a reciprocal basis
with similar pool arrangements authorized by
the appropriate agency of Canada.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 559.)
HISTORICAL AND REVISION NOTES
Revised section
9304 ..............................................

Source section (U.S. Code)
46:216b(e)

Section 9304 provides for the formation of a pool by
a voluntary association of United States registered pilots to provide for efficient pilotage services.
Subsection (a) permits the Secretary to authorize formation of United States pilotage pools.
Subsection (b) sets forth the restrictions and conditions that the Secretary may prescribe for these pools.

§ 9305. Agreements with Canada
To provide for a coordinated system of pilotage service on the Great Lakes, the Secretary,
subject to the concurrence of the Secretary of
State, may make agreements with the appropriate agency of Canada to—
(1) fix the number of pilots to be registered
in each country;
(2) provide for participation on an equitable
basis;
(3) prescribe joint or identical rates and
charges;
(4) coordinate pool operations; and
(5) establish conditions for services by registered pilots.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 559.)

Page 142
HISTORICAL AND REVISION NOTES

Revised section
9305 ..............................................

Source section (U.S. Code)
46:216b(d)
46:216d

Section 9305 authorizes the Secretary of Transportation, subject to the concurrence of the Secretary of
State, to make agreements with Canada for a coordinated system of pilotage service on the Great Lakes.
The agreements may fix the number of registered pilots, provide for equitable participation, prescribe rates
and charges, coordinate pool operations, and establish
conditions for service.

§ 9306. State regulation prohibited
A State or political subdivision of a State may
not regulate or impose any requirement on
pilotage on the Great Lakes.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 559.)
HISTORICAL AND REVISION NOTES
Revised section
9306 ..............................................

Source section (U.S. Code)
46:216g

Section 9306 prohibits State or local regulations of
pilotage on the Great Lakes and is part of the exception provided by law envisioned under section 8501(a).

§ 9307. Great Lakes Pilotage Advisory Committee
(a) The Secretary shall establish a Great
Lakes Pilotage Advisory Committee. The Committee—
(1) may review proposed Great Lakes pilotage regulations and policies and make recommendations to the Secretary that the Committee considers appropriate;
(2) may advise, consult with, report to, and
make recommendations to the Secretary on
matters relating to Great Lakes pilotage;
(3) may make available to the Congress recommendations that the Committee makes to
the Secretary; and
(4) shall meet at the call of—
(A) the Secretary, who shall call such a
meeting at least once during each calendar
year; or
(B) a majority of the Committee.
(b)(1) The Committee shall consist of seven
members appointed by the Secretary in accordance with this subsection, each of whom has at
least 5 years practical experience in maritime
operations. The term of each member is for a period of not more than 5 years, specified by the
Secretary. Before filling a position on the Committee, the Secretary shall publish a notice in
the Federal Register soliciting nominations for
membership on the Committee.
(2) The membership of the Committee shall include—
(A) the President of each of the 3 Great
Lakes pilotage districts, or the President’s
representative;
(B) one member representing the interests of
vessel operators that contract for Great Lakes
pilotage services;
(C) one member representing the interests of
Great Lakes ports;
(D) one member representing the interests of
shippers whose cargoes are transported
through Great Lakes ports; and

Page 143

§ 9308

TITLE 46—SHIPPING

(E) a member with a background in finance
or accounting, who—
(i) must have been recommended to the
Secretary by a unanimous vote of the other
members of the Committee, and
(ii) may be appointed without regard to requirement in paragraph (1) that each member have 5 years of practical experience in
maritime operations.
(c)(1) The Committee shall elect one of its
members as the Chairman and one of its members as the Vice Chairman. The Vice Chairman
shall act as Chairman in the absence or incapacity of the Chairman, or in the event of a vacancy in the office of the Chairman.
(2) The Secretary shall, and any other interested agency may, designate a representative to
participate as an observer with the Committee.
The Secretary’s designated representative shall
act as the executive secretary of the Committee
and shall perform the duties set forth in section
10(c) of the Federal Advisory Committee Act (5
U.S.C. App.).
(d)(1) The Secretary shall, whenever practicable, consult with the Committee before taking any significant action relating to Great
Lakes pilotage.
(2) The Secretary shall consider the information, advice, and recommendations of the Committee in formulating policy regarding matters
affecting Great Lakes pilotage.
(3) Any recommendations to the Secretary
under subsection (a)(2) must have been approved
by at least all but one of the members then serving on the committee.
(e)(1) A member of the Committee, when attending meetings of the Committee or when
otherwise engaged in the business of the Committee, is entitled to receive—
(A) compensation at a rate fixed by the Secretary, not exceeding the daily equivalent of
the current rate of basic pay in effect for
GS–18 of the General Schedule under section
5332 of title 5 including travel time; and
(B) travel or transportation expenses under
section 5703 of title 5, United States Code.
(2) A member of the Committee shall not be
considered to be an officer or employee of the
United States for any purpose based on their receipt of any payment under this subsection.
(f)(1) The Federal Advisory Committee Act (5
U.S.C. App.) applies to the Committee, except
that the Committee terminates on September
30, 2020.
(2) 2 years before the termination date set
forth in paragraph (1) of this subsection, the
Committee shall submit to the Congress its recommendation regarding whether the Committee
should be renewed and continued beyond the termination date.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 559; Pub. L.
105–383, title III, § 303, Nov. 13, 1998, 112 Stat. 3418;
Pub. L. 106–554, § 1(a)(4) [div. A, § 1118], Dec. 21,
2000, 114 Stat. 2763, 2763A–209; Pub. L. 108–293,
title IV, § 418(d), Aug. 9, 2004, 118 Stat. 1049; Pub.
L. 109–304, § 15(23), Oct. 6, 2006, 120 Stat. 1704;
Pub. L. 111–281, title VI, § 621(a), Oct. 15, 2010, 124
Stat. 2976.)

HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

9307 ..............................................

46:216h

Section 9307 permits the Secretary to establish a
Great Lakes Pilotage Advisory Committee. This Committee is to be established consistent with the Federal
Advisory Committee Act (P.L. 92–463; 5 App. U.S.C.)
and with the requirements imposed by section 19
[118(e)] of P.L. 97–322 (14 U.S.C. 631 note).
Subsection (a) authorizes the Committee to review
and make recommendations on Great Lakes pilotage
regulation and policies and to make the recommendations available to Congress and requires the Committee
to meet at the call of the Secretary.
Subsection (b) establishes the membership of the
Committee as 3 members with 5 years of practical maritime experience appointed by the Secretary for a term
of not more than 5 years. A Federal Register notice of
solicitation for membership nominations for filling a
position is required.
Subsection (c) provides for pay and travel expenses,
including per diem, for the members.
REFERENCES IN TEXT
The Federal Advisory Committee Act, referred to in
subsecs. (c)(2) and (f)(1), is Pub. L. 92–463, Oct. 6, 1972,
86 Stat. 770, as amended, which is set out in the Appendix to Title 5, Government Organization and Employees.
AMENDMENTS
2010—Subsec. (f)(1). Pub. L. 111–281 substituted ‘‘September 30, 2020’’ for ‘‘September 30, 2010’’.
2006—Subsec. (b)(2)(A). Pub. L. 109–304 substituted
‘‘the President’’ for ‘‘The President’’.
2004—Subsec. (f)(1). Pub. L. 108–293 substituted ‘‘September 30, 2010’’ for ‘‘September 30, 2005’’.
2000—Subsec. (b)(2)(A). Pub. L. 106–554, § 1(a)(4) [div.
A, § 1118(1)], amended subpar. (A) generally. Prior to
amendment, subpar. (A) read as follows: ‘‘three members who are practicing Great Lakes pilots and who reflect a regional balance;’’.
Subsec. (b)(2)(E). Pub. L. 106–554, § 1(a)(4) [div. A,
§ 1118(2)], amended subpar. (E) generally. Prior to
amendment, subpar. (E) read as follows: ‘‘one member
representing the interests of the general public, who is
an independent expert on the Great Lakes maritime industry.’’
Subsec. (c)(2). Pub. L. 106–554, § 1(a)(4) [div. A,
§ 1118(3)], which directed the striking out of second sentence in subsec. (C)(2), was executed by striking out the
second sentence in subsec. (c)(2), ‘‘The representatives
shall, as appropriate, report to and advise the Committee on matters relating to Great Lakes pilotage.’’, to
reflect the probable intent of Congress.
Subsec. (d)(3). Pub. L. 106–554, § 1(a)(4) [div. A,
§ 1118(4)], added par. (3).
Subsec. (f)(1). Pub. L. 106–554, § 1(a)(4) [div. A,
§ 1118(5)], substituted ‘‘September 30, 2005’’ for ‘‘September 30, 2003’’.
1998—Pub. L. 105–383 amended section generally, substituting provisions consisting of subsecs. (a) to (f) for
former provisions consisting of subsecs. (a) to (c).
REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY
RATES
References in laws to the rates of pay for GS–16, 17,
or 18, or to maximum rates of pay under the General
Schedule, to be considered references to rates payable
under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, § 101(c)(1)]
of Pub. L. 101–509, set out in a note under section 5376
of Title 5.

§ 9308. Penalties
(a) An owner, charterer, managing operator,
agent, master, or individual in charge of a vessel

§ 10101

TITLE 46—SHIPPING

knowingly allowing the vessel to be operated in
violation of section 9302 of this title is liable to
the United States Government for a civil penalty of no more than $10,000 for each day during
which the vessel is in violation. The vessel also
is liable in rem for the penalty.
(b) An individual who directs the navigation of
a vessel in violation of section 9302 of this title
is liable to the Government for a civil penalty of
no more than $10,000 for each day during which
the violation occurs.
(c) A person violating a regulation prescribed
under section 9303 of this title is liable to the
Government for a civil penalty of no more than
$10,000.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 560; Pub. L.
101–380, title IV, § 4108(b), Aug. 18, 1990, 104 Stat.
515.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

Page 144

(1) ‘‘master’’ means the individual having
command of a vessel.
(2) ‘‘owner’’ means the person to whom the
vessel belongs.
(3) ‘‘seaman’’ means an individual (except
scientific personnel, a sailing school instructor, or a sailing school student) engaged or
employed in any capacity on board a vessel.
(4) ‘‘fishing vessel’’ includes—
(A) a fish tender vessel; or
(B) a fish processing vessel entered into
service before January 1, 1988, and not more
than 1,600 gross tons as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this
title as prescribed by the Secretary under
section 14104 of this title or entered into
service after December 31, 1987, and having
not more than 16 individuals on board primarily employed in the preparation of fish
or fish products.

AMENDMENTS

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 560; Pub. L.
98–364, title IV, § 402(13), July 17, 1984, 98 Stat.
449; Pub. L. 98–557, § 33(d), Oct. 30, 1984, 98 Stat.
2876; Pub. L. 99–640, § 10(b)(3), Nov. 10, 1986, 100
Stat. 3550; Pub. L. 104–324, title VII, § 736, Oct. 19,
1996, 110 Stat. 3941.)

1990—Subsecs. (a) to (c). Pub. L. 101–380 substituted
‘‘no more than $10,000’’ for ‘‘$500’’.

HISTORICAL AND REVISION NOTES

9308 ..............................................

46:216e(a)–(c)

Section 9308 prescribes the penalties for violations of
sections 9302 and 9303.

EFFECTIVE DATE OF 1990 AMENDMENT

Revised section

Amendment by Pub. L. 101–380 applicable to incidents
occurring after Aug. 18, 1990, see section 1020 of Pub. L.
101–380, set out as an Effective Date note under section
2701 of Title 33, Navigation and Navigable Waters.

10101 ............................................

Section 10101 defines the terms master, seaman, and
owner as they apply to merchant seamen’s protection
and relief.

PART G—MERCHANT SEAMEN PROTECTION AND
RELIEF
HISTORICAL AND REVISION NOTES
Part G provides for a number of measures for the protection and relief of merchant seamen by requiring certain contractual obligations between the master who
represents the vessel owner’s interest and the seamen
who are engaged or employed on board a vessel, by requiring certain proceedings when a seaman dies or a
vessel is suspected of being unseaworthy, by requiring
certain standards for accommodations, medicine, clothing, miscellaneous merchandise, and for the handling of
special and unique problems of seamen. It also provides
for a method of imposing disciplinary controls through
the logging of offenses and provides penalties for specified offenses, and certain related disciplinary procedures. The provisions of this part generally do not
apply to fishing vessels, whaling vessels, or yachts.

CHAPTER 101—GENERAL
Sec.

10101.
[10102.
10103.
10104.

Definitions.
Repealed.]
Reports.
Requirement to report sexual offenses.
AMENDMENTS

1993—Pub. L. 103–206, title IV, § 422(c)(2), Dec. 20, 1993,
107 Stat. 2439, struck out item 10102 ‘‘Designations and
duties of shipping commissioners’’.
1989—Pub. L. 101–225, title II, § 214(b), Dec. 12, 1989, 103
Stat. 1914, substituted ‘‘Requirement to report sexual
offenses’’ for ‘‘Regulations’’ in item 10104.

§ 10101. Definitions
In this part—

Source section (U.S. Code)
46:713

AMENDMENTS
1996—Par. (4)(B). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘1,600 gross tons’’.
1986—Pars. (1), (3). Pub. L. 99–640 struck out ‘‘owned
by a citizen of the United States’’ after ‘‘vessel’’.
1984—Par. (4). Pub. L. 98–364, as amended Pub. L.
98–557, added par. (4).

[§ 10102. Repealed. Pub. L. 103–206, title IV,
§ 422(c)(1), Dec. 20, 1993, 107 Stat. 2439]
Section, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 560, related to designations and duties of shipping commissioners.

§ 10103. Reports
(a) A master of a vessel to which section
8701(a) of this title applies, who engages or discharges a seaman, shall submit reports to the
vessel owner in the form, content, and manner
of filing as prescribed by regulation, to ensure
compliance with laws related to manning and
the engagement and discharge of seamen.
(b) This section does not apply to a ferry or
towing vessel operated in connection with a
ferry operation, employed only in trades other
than with foreign ports, lakes, bays, sounds,
bayous, canals, or harbors.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 560; Pub. L.
103–206, title IV, § 417, Dec. 20, 1993, 107 Stat.
2438.)

Page 145

§ 10302

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised section

Source section (U.S. Code)

10103 ............................................

46:643(l)

section 14104 of this title on a voyage between
a port of the United States on the Atlantic
Ocean and a port of the United States on the
Pacific Ocean.

Section 10103 requires that masters who engage or
discharge seamen submit to the Coast Guard reports of
the manning of the vessel, and reports of shipping
agreements which are not supervised by a shipping
commissioner. It also contains a number of exceptions
for specified vessels.

(b) This chapter does not apply to a vessel on
which the seamen are entitled by custom or
agreement to share in the profit or result of a
voyage or to riding gang members.
(c) Unless otherwise provided, this chapter
does not apply to a foreign vessel.

AMENDMENTS

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 561; Pub. L.
104–324, title VII, § 737, Oct. 19, 1996, 110 Stat.
3941; Pub. L. 109–241, title III, § 312(c)(2), July 11,
2006, 120 Stat. 533.)

1993—Subsec. (a). Pub. L. 103–206 struck out ‘‘without
a shipping commissioner being present’’ after ‘‘discharges a seaman’’ and inserted ‘‘to the vessel owner’’
after ‘‘shall submit reports’’.

§ 10104. Requirement to report sexual offenses
(a) A master or other individual in charge of a
documented vessel shall report to the Secretary
a complaint of a sexual offense prohibited under
chapter 109A of title 18, United States Code.
(b) A master or other individual in charge of a
documented vessel who knowingly fails to report in compliance with this section is liable to
the United States Government for a civil penalty of not more than $5,000.
(Added Pub. L. 101–225, title II, § 214(a)(2), Dec.
12, 1989, 103 Stat. 1914.)
PRIOR PROVISIONS
A prior section 10104, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 561, related to regulations, prior to repeal by Pub.
L. 101–225, § 214(a)(1).

CHAPTER 103—FOREIGN AND
INTERCOASTAL VOYAGES
Sec.

10301.
10302.
10303.
10304.
10305.
10306.
10307.
10308.
10309.
10310.
10311.
10312.
10313.
10314.
10315.
10316.
10317.
10318.
10319.
10320.
10321.

Application.
Shipping articles agreements.
Provisions.
Form of agreement.
Manner of signing agreement.
Exhibiting merchant mariners’ documents.
Posting agreements.
Foreign engagements.
Engaging seamen to replace those lost by desertion or casualty.
Discharge.
Certificates of discharge.
Settlements on discharge.
Wages.
Advances.
Allotments.
Trusts.
Loss of lien and right to wages.
Wages on discharge in foreign ports.
Costs of a criminal conviction.
Records of seamen.
General penalty.

§ 10301. Application
(a) Except as otherwise specifically provided,
this chapter applies to a vessel of the United
States—
(1) on a voyage between a port in the United
States and a port in a foreign country (except
a port in Canada, Mexico, or the West Indies);
or
(2) of at least 75 gross tons as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302 of
this title as prescribed by the Secretary under

HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10301 ............................................

46:564
46:566
46:574

Section 10301 specifies that vessels on foreign and
intercoastal voyages (except for fishing vessels and foreign vessels) are subject to the seamen protection and
relief provisions contained in chapter 103.
AMENDMENTS
2006—Subsec. (b). Pub. L. 109–241 inserted ‘‘or to
riding gang members’’ after ‘‘voyage’’.
1996—Subsec. (a)(2). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘75 gross tons’’.

§ 10302. Shipping articles agreements
(a) The owner, charterer, managing operator,
master, or individual in charge shall make a
shipping agreement in writing with each seaman
before the seaman commences employment.
(b) The agreement shall contain the following:
(1) the nature, and, as far as practicable, the
duration of the intended voyage, and the port
or country in which the voyage is to end.
(2) the number and description of the crew
and the capacity in which each seaman is to
be engaged.
(3) the time at which each seaman is to be on
board to begin work.
(4) the amount of wages each seaman is to
receive.
(5) regulations about conduct on board, and
information on fines, short allowance of provisions, and other punishment for misconduct
provided by law.
(6) a scale of the provisions that are to be
provided each seaman.
(7) any stipulation in reference to advances
and allotments of wages.
(8) other matters not contrary to law.
(c) Each shipping agreement must be signed by
the master or individual in charge or a representative of the owner, charterer, or managing
operator, and by each seaman employed.
(d) The owner, charterer, managing operator,
master, or individual in charge shall maintain
the shipping agreement and make the shipping
agreement available to the seaman.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 561; Pub. L.
103–206, title IV, § 401, Dec. 20, 1993, 107 Stat.
2435.)

§ 10303

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10302 ............................................

46:564

Section 10302 requires the master to make a shipping
agreement with each crew member and lists the information that must be included in the agreement.
AMENDMENTS
1993—Subsec. (a). Pub. L. 103–206, § 401(1), amended
subsec. (a) generally. Prior to amendment, subsec. (a)
read as follows: ‘‘Before proceeding on a voyage, the
master of a vessel to which this chapter applies shall
make a shipping articles agreement in writing with
each seaman in the crew.’’
Subsecs. (c), (d). Pub. L. 103–206, § 401(2), added subsecs. (c) and (d).

§ 10303. Provisions
(a) A seaman shall be served at least 3 meals
a day that total at least 3,100 calories, including
adequate water and adequate protein, vitamins,
and minerals in accordance with the United
States Recommended Daily Allowances.
(b) The text of subsection (a) of this section
shall be included in the agreement required by
section 10302 of this title. A copy of the text also
shall be posted in a conspicuous place in the galley and forecastle of each vessel.
(c) This section does not apply to a fishing or
whaling vessel or a yacht.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 562.)
HISTORICAL AND REVISION NOTES
Revised section
10303 ............................................

Source section (U.S. Code)
46:713

Section 10303 requires that seamen be served adequate food and water and that the text of this requirement be posted in the galley. The provisions do not
apply to fishing vessels, whaling vessels, or yachts.

§ 10304. Form of agreement
The form of the agreement required by section
10302 of this title shall be in substance as follows:
UNITED STATES OF AMERICA
(Date and place of first signature of agreement):
It is agreed between the master and seamen of
the
, of which
is at present
master, or whoever shall go for master, now
bound
from
the
port
of
to
(here the voyage is to be described, and
the places named at which the vessel is to
touch, or if that cannot be done, the general nature and probable length of the voyage is to be
stated).
The seamen agree to conduct themselves in an
orderly, faithful, honest, and sober manner, and
to be at all times diligent in their respective duties, and to be obedient to the lawful commands
of the master, or of an individual who lawfully
succeeds the master, and of their superior officers in everything related to the vessel, and the
stores and cargo of the vessel, whether on board,
in boats, or on shore. In consideration of this
service by the seamen to be performed, the master agrees to pay the crew, as wages, the

Page 146

amounts beside their names respectively expressed, and to supply them with provisions according to the annexed scale.
It is agreed that any embezzlement, or willful
or negligent destruction of any part of the vessel’s cargo or stores, shall be made good to the
owner out of the wages of the person guilty of
the embezzlement or destruction.
If an individual holds himself or herself out as
qualified for a duty which the individual proves
incompetent to perform, the individual’s wages
shall be reduced in proportion to the incompetency.
It also is agreed that if a seaman considers
himself or herself to be aggrieved by any breach
of this agreement or otherwise, the seaman shall
present the complaint to the master or officer in
charge of the vessel, in a quiet and orderly manner, who shall take steps that the case requires.
It also is agreed that (here any other stipulations may be inserted to which the parties
agree, and that are not contrary to law).
In witness whereof, the parties have subscribed their names to this agreement, on the
dates beside their respective signatures.
Signed by
, master, on the
day of
, nineteen hundred
and
.
Signature of seaman
Birthplace
Age
Height:
Feet
Inches
Description:
Complexion
Hair
Wages each month
Wages each voyage
Advance wages
Amount of monthly
allotment

Time of service:
Months
Days
Hospital money
Whole wages
Wages due
Place and time of entry
Time at which seaman is to
be on board
In what capacity
Allotment payable to
Conduct qualifications

NOTE.—In the place for signature and descriptions of individuals engaged after the first departure of the vessel, the entries
are to be made as above, except that the signature of the consul
or vice consul, customs officer, or witness before whom the individual is engaged, is to be entered.

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 562; Pub. L.
103–206, title IV, § 402, Dec. 20, 1993, 107 Stat.
2436.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10304 ............................................

46:713

Section 10304 provides the form of the shipping articles of agreement. While the exact format need not be
followed, the form that is used must contain all the
pertinent elements.
AMENDMENTS
1993—Pub. L. 103–206 struck out ‘‘Shipping commissioner’s signature or initials’’ immediately below ‘‘In
what capacity’’ in the form.

§ 10305. Manner of signing agreement
The agreement required by section 10302 of
this title shall be signed—
(1) first by the master and dated at that
time, after which each seaman shall sign; and
(2) in the presence of the master or individual in charge.

Page 147

§ 10309

TITLE 46—SHIPPING

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 563; Pub. L.
103–206, title IV, § 403, Dec. 20, 1993, 107 Stat.
2436.)

HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10307 ............................................

46:577

HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10305 ............................................

46:565

Section 10305 describes the procedures for signing the
shipping agreement, and for keeping official records of
the agreement. It also requires that the agreement include a statement that the seaman understand its provisions, and did so while sober.
AMENDMENTS
1993—Pub. L. 103–206 struck out ‘‘(a)’’ before ‘‘The
agreement’’, substituted ‘‘the master or individual in
charge’’ for ‘‘a shipping commissioner’’ in par. (2), and
struck out subsecs. (b) and (c) which read as follows:
‘‘(b) When the crew is first engaged, the agreement
shall be signed in duplicate. One of the copies shall be
retained by the shipping commissioner. The other copy
shall contain space for the description and signatures
of seamen engaged subsequent to the first making of
the agreement, and shall be delivered to the master.
‘‘(c) An agreement signed before a shipping commissioner shall be acknowledged and signed by the commissioner on the agreement in the manner and form
prescribed by regulation. The acknowledgment and certification shall include a statement by the commissioner that the seaman—
‘‘(1) has read the agreement;
‘‘(2) is acquainted with and understands its conditions; and
‘‘(3) has signed it freely and voluntarily when
sober.’’

§ 10306. Exhibiting merchant mariners’ documents
Before signing the agreement required by section 10302 of this title, each individual required
by section 8701 of this title to have a merchant
mariner’s document shall exhibit to the master
or individual in charge a document issued to the
individual, appropriately endorsed for the capacity in which the individual is to serve.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 564; Pub. L.
103–206, title IV, § 404, Dec. 20, 1993, 107 Stat.
2436.)

Section 10307 requires the master to post a copy of
the shipping agreement in a part of the vessel accessible to the crew prior to the commencement of a voyage. The posting must be done in a manner that gives
seamen adequate notice of the particulars of the pending voyage.
AMENDMENTS
1993—Pub. L. 103–206 struck out at end ‘‘A master violating this section is liable to the United States Government for a civil penalty of $100.’’

§ 10308. Foreign engagements
When a seaman is engaged outside the United
States, the agreement required by section 10302
of this title shall be signed in the presence of a
consular officer. If a consular officer is not
available at the port of engagement, the seaman
may be engaged, and the agreement shall be
signed in the next port at which a consular officer is available.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 564; Pub. L.
103–206, title IV, § 406, Dec. 20, 1993, 107 Stat.
2436.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10308 ............................................

46:570

Section 10308 requires that shipping agreements made
in foreign ports be signed in the presence of a consular
officer. The penalty for violation of this section is $100.
AMENDMENTS
1993—Pub. L. 103–206 struck out ‘‘(a)’’ before ‘‘When a
seaman’’ and struck out subsec. (b) which read as follows: ‘‘A master engaging a seaman in violation of this
section is liable to the United States Government for a
civil penalty of $100. The vessel also is liable in rem for
the penalty.’’

§ 10309. Engaging seamen to replace those lost by
desertion or casualty

HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10306 ............................................

46:643(c)

Section 10306 requires a seaman to exhibit an appropriately endorsed merchant mariner’s document to the
shipping commissioner before signing a shipping agreement. When a master acts as a shipping commissioner,
the same procedure applies.
AMENDMENTS
1993—Pub. L. 103–206 substituted ‘‘master or individual in charge’’ for ‘‘shipping commissioner’’.

§ 10307. Posting agreements
At the beginning of a voyage, the master shall
have a legible copy of the agreement required by
section 10302 of this title, omitting signatures,
exhibited in a part of the vessel accessible to the
crew.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 564; Pub. L.
103–206, title IV, § 405, Dec. 20, 1993, 107 Stat.
2436.)

(a) If a desertion or casualty results in the loss
of at least one seaman, the master shall engage,
if obtainable, a number equal to the number of
seamen of whose services the master has been
deprived. The new seaman must have at least
the same grade or rating as the seaman whose
place the new seaman fills. The master shall report the loss and replacement to a consular officer at the first port at which the master arrives.
(b) This section does not apply to a fishing or
whaling vessel or a yacht.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 564; Pub. L.
103–206, title IV, § 407, Dec. 20, 1993, 107 Stat.
2436.)
HISTORICAL AND REVISION NOTES
Revised section
10309 ............................................

Source section (U.S. Code)
46:569

Section 10309 provides for the replacement of seamen
lost by desertion or casualty. It does not apply to fishing vessels, whaling vessels, or yachts.

§ 10310

TITLE 46—SHIPPING
AMENDMENTS

1993—Subsecs. (b), (c). Pub. L. 103–206 redesignated
subsec. (c) as (b) and struck out former subsec. (b)
which read as follows: ‘‘The master is liable to the
United States Government for a civil penalty of $200 for
each report not made. The vessel also is liable in rem
for the penalty.’’

Page 148

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 564; Pub. L.
103–206, title IV, § 409, Dec. 20, 1993, 107 Stat.
2436.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10311 ............................................

§ 10310. Discharge
A master shall deliver to a seaman a full and
true account of the seaman’s wages and all deductions at least 48 hours before paying off or
discharging the seaman.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 564; Pub. L.
103–206, title IV, § 408, Dec. 20, 1993, 107 Stat.
2436.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10310 ............................................

Section 10311 requires a shipping commissioner, when
discharging a seaman, either to provide the seaman
with a certificate of discharge or to make an entry in
the seaman’s continuous discharge book. It requires
that certain facts be included in the certificate or in
the entry, prohibits other information from being included, and requires the Secretary to keep records of
all discharges, copies of which must be furnished to
seamen at cost upon request. These discharges are used
to substantiate the nature and duration of the seaman’s employment on a particular vessel. This section
does not apply to fishing vessels, whaling vessels, or
yachts.

46:641
46:642

Section 10310 requires the master of a vessel to give
each seaman a full account of the seaman’s wages 48
hours before discharge. The penalty for violation is $50.
AMENDMENTS
1993—Pub. L. 103–206 struck out ‘‘or a shipping commissioner’’ after ‘‘to a seaman’’ and struck out at end
‘‘A master failing to deliver the account is liable to the
United States Government for a civil penalty of $50.’’

§ 10311. Certificates of discharge
(a) On discharging a seaman and paying the
seaman’s wages, the master or individual in
charge shall provide the seaman with a certificate of discharge. The form of the certificate
shall be prescribed by regulation. It shall contain—
(1) the name of the seaman;
(2) the citizenship or nationality of the seaman;
(3) the number of the seaman’s merchant
mariner’s document;
(4) the name and official number of the vessel;
(5) the nature of the voyage (foreign, intercoastal, or coastwise);
(6) the propulsion class of the vessel;
(7) the date and place of engagement;
(8) the date and place of discharge; and
(9) the seaman’s capacity on the voyage.
(b) The certificate of discharge may not contain a reference about the character or ability of
the seaman. The certificate shall be signed by
the master and the seaman.
(c) A certificate of discharge may not be issued if the seaman holds a continuous discharge
book. The entries shall be made in the discharge
book in the same manner as the entries required
by subsection (a) of this section.
(d)(1) A record of each discharge shall be maintained by the owner, charterer, managing operator, master, or individual in charge in the manner and location prescribed by regulation. The
records may not be open for general or public
use or inspection.
(2) A duplicate of a record of discharge shall be
issued to a seaman at the request of the seaman.
(e) This section does not apply to a fishing or
whaling vessel or a yacht.

46:643

AMENDMENTS
1993—Subsec. (a). Pub. L. 103–206, § 409(1), substituted
‘‘master or individual in charge’’ for ‘‘shipping commissioner’’.
Subsec. (b). Pub. L. 103–206, § 409(2), substituted ‘‘by
the master and the seaman’’ for ‘‘by the master, the
seaman, and the shipping commissioner as witness’’.
Subsec. (d)(1). Pub. L. 103–206, § 409(3), substituted
‘‘owner, charterer, managing operator, master, or individual in charge’’ for ‘‘Secretary’’.
Subsec. (d)(2). Pub. L. 103–206, § 409(4), substituted ‘‘at
the request of the seaman’’ for ‘‘at a cost prescribed by
regulation’’.

§ 10312. Settlements on discharge
When discharge and settlement are completed,
the master, individual in charge, or owner and
each seaman shall sign the agreement required
by section 10302 of this title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 565; Pub. L.
103–206, title IV, § 410, Dec. 20, 1993, 107 Stat.
2437.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10312(a), (b), (d)–(f) ......................
10312(c) ........................................

46:644
46:652

Section 10312 outlines the procedures for settlements
upon discharge and for settling disputes over seamen’s
wages and discharges.
AMENDMENTS
1993—Pub. L. 103–206 amended heading and text of section generally, substituting text consisting of sentence
relating to signing agreements on discharge and settlement for former subsecs. (a) to (f) relating to such
agreements, proceedings before shipping commissioners
to settle disputes, certified copies of agreements, evidence of release of claims, and statements of wages
paid.

§ 10313. Wages
(a) A seaman’s entitlement to wages and provisions begins when the seaman begins work or
when specified in the agreement required by section 10302 of this title for the seaman to begin
work or be present on board, whichever is earlier.
(b) Wages are not dependent on the earning of
freight by the vessel. When the loss or wreck of

Page 149

§ 10314

TITLE 46—SHIPPING

the vessel ends the service of a seaman before
the end of the period contemplated in the agreement, the seaman is entitled to wages for the
period of time actually served. The seaman shall
be deemed a destitute seaman under section
11104 of this title. This subsection applies to a
fishing or whaling vessel but not a yacht.
(c) When a seaman who has signed an agreement is discharged improperly before the beginning of the voyage or before one month’s wages
are earned, without the seaman’s consent and
without the seaman’s fault justifying discharge,
the seaman is entitled to receive from the master or owner, in addition to wages earned, one
month’s wages as compensation.
(d) A seaman is not entitled to wages for a period during which the seaman—
(1) unlawfully failed to work when required,
after the time fixed by the agreement for the
seaman to begin work; or
(2) lawfully was imprisoned for an offense,
unless a court hearing the case otherwise directs.
(e) After the beginning of the voyage, a seaman is entitled to receive from the master, on
demand, one-half of the balance of wages earned
and unpaid at each port at which the vessel
loads or delivers cargo during the voyage. A demand may not be made before the expiration of
5 days from the beginning of the voyage, not
more than once in 5 days, and not more than
once in the same port on the same entry. If a
master does not comply with this subsection,
the seaman is released from the agreement and
is entitled to payment of all wages earned. Notwithstanding a release signed by a seaman under
section 10312 of this title, a court having jurisdiction may set aside, for good cause shown, the
release and take action that justice requires.
This subsection does not apply to a fishing or
whaling vessel or a yacht.
(f) At the end of a voyage, the master shall
pay each seaman the balance of wages due the
seaman within 24 hours after the cargo has been
discharged or within 4 days after the seaman is
discharged, whichever is earlier. When a seaman
is discharged and final payment of wages is delayed for the period permitted by this subsection, the seaman is entitled at the time of
discharge to one-third of the wages due the seaman.
(g)(1) Subject to paragraph (2), when payment
is not made as provided under subsection (f) of
this section without sufficient cause, the master
or owner shall pay to the seaman 2 days’ wages
for each day payment is delayed.
(2) The total amount required to be paid under
paragraph (1) with respect to all claims in a
class action suit by seamen on a passenger vessel capable of carrying more than 500 passengers
for wages under this section against a vessel
master, owner, or operator or the employer of
the seamen shall not exceed ten times the unpaid wages that are the subject of the claims.
(3) A class action suit for wages under this
subsection must be commenced within three
years after the later of—
(A) the date of the end of the last voyage for
which the wages are claimed; or
(B) the receipt, by a seaman who is a claimant in the suit, of a payment of wages that are

the subject of the suit that is made in the ordinary course of employment.
(h) Subsections (f) and (g) of this section do
not apply to a fishing or whaling vessel or a
yacht.
(i) This section applies to a seaman on a foreign vessel when in a harbor of the United
States. The courts are available to the seaman
for the enforcement of this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 566; Pub. L.
99–640, § 10(b)(4), Nov. 10, 1986, 100 Stat. 3550; Pub.
L. 111–281, title IX, § 902(a)(1), Oct. 15, 2010, 124
Stat. 3008.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10313(a) ........................................
10313(b) ........................................
10313(c) ........................................
10313(d) ........................................
10313(e)–(i) ...................................

46:591
46:592
46:593
46:594
46:595
46:596
46:597
46:598

Section 10313 provides that a seaman’s entitlement to
wages begins when the seaman begins work, or as specified in the shipping agreement. This section also qualifies a seaman’s entitlement to wages if the vessel is
lost or wrecked, if the seaman is discharged improperly, or if the seaman unlawfully failed to work or was
imprisoned. It also establishes procedures for the payment of wages at each port the vessel loads or unloads
cargo, and at the end of the voyage. This section applies to seamen on foreign vessels in United States harbors, but not to fishing vessels, whaling vessels or
yachts.
AMENDMENTS
2010—Subsec. (g). Pub. L. 111–281 designated existing
provisions as par. (1), substituted ‘‘(1) Subject to paragraph (2), when’’ for ‘‘When’’, and added pars. (2) and
(3).
1986—Subsec. (e). Pub. L. 99–640 struck out last sentence which read as follows: ‘‘However, this subsection
applies to a vessel taking oysters.’’
Subsec. (h). Pub. L. 99–640 struck out last sentence
which read as follows: ‘‘However, subsections (f) and (g)
apply to a vessel taking oysters.’’

§ 10314. Advances
(a)(1) A person may not—
(A) pay a seaman wages in advance of the
time when the seaman has earned the wages;
(B) pay advance wages of the seaman to another person; or
(C) make to another person an order, note,
or other evidence of indebtedness of the wages,
or pay another person, for the engagement of
seamen when payment is deducted or to be deducted from the seaman’s wage.
(2) A person violating this subsection is liable
to the United States Government for a civil penalty of not more than $500. A payment made in
violation of this subsection does not relieve the
vessel or the master from the duty to pay all
wages after they have been earned.
(b) A person demanding or receiving from a
seaman or an individual seeking employment as
a seaman, remuneration for providing the seaman or individual with employment, is liable to
the Government for a civil penalty of not more
than $500.
(c) This section applies to a foreign vessel
when in waters of the United States. An owner,

§ 10315

TITLE 46—SHIPPING

charterer, managing operator, agent, or master
of a foreign vessel violating this section is liable
to the Government for the same penalty as an
owner, charterer, managing operator, agent, or
master of a vessel of the United States for the
same violation.
(d) The owner, charterer, managing operator,
agent, or master of a vessel seeking clearance
from a port of the United States shall present
the agreement required by section 10302 of this
title at the office of clearance. Clearance may be
granted to a vessel only if this section has been
complied with.
(e) This section does not apply to a fishing or
whaling vessel or a yacht.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 567; Pub. L.
99–640, § 10(b)(4), Nov. 10, 1986, 100 Stat. 3550.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10314 ............................................

46:599

Section 10314 forbids advance payment of wages to
seamen prior to the commencement of the seaman’s
employment. It provides a civil penalty of $500 for any
person making such a payment, and for any person demanding or receiving remuneration for providing a seaman with employment. This means that the use of employment agencies for hiring seamen is prohibited. It
also requires compliance with section 10302 regarding
the signing of articles of agreement before a vessel can
be cleared from a United States port. This section applies to foreign vessels in United States waters but not
to fishing vessels, whaling vessels or yachts.
AMENDMENTS
1986—Subsec. (e). Pub. L. 99–640 struck out last sentence which read as follows: ‘‘However, this section applies to a vessel taking oysters.’’

§ 10315. Allotments
(a) Under prescribed regulations, a seaman
may stipulate as follows in the agreement required by section 10302 of this title for an allotment of any part of the wages the seaman may
earn:
(1) to the seaman’s grandparents, parents,
spouse, sister, brother, or children;
(2) to an agency designated by the Secretary
of the Treasury to handle applications for
United States savings bonds, to purchase
bonds for the seaman; and
(3) for deposits to be made in an account for
savings or investment opened by the seaman
and maintained in the seaman’s name at a
savings bank or a savings institution in which
the accounts are insured by the Federal Deposit Insurance Corporation or the Federal
Savings and Loan Insurance Corporation.
(b) An allotment is valid only if made in writing and signed by and approved by a shipping
commissioner. The shipping commissioner shall
examine allotments and the parties to them to
enforce compliance with the law. Stipulations
for allotments made at the beginning of a voyage shall be included in the agreement and shall
state the amounts and times of payment and the
person to whom payments are to be made.
(c) Only an allotment complying with this section is lawful. A person falsely claiming qualification as an allottee under this section is lia-

Page 150

ble to the United States Government for a civil
penalty of not more than $500.
(d) The owner, charterer, managing operator,
agent, or master of a vessel seeking clearance
from a port of the United States shall present
the agreement at the office of clearance. Clearance may be granted to a vessel only if this section has been complied with.
(e) This section applies to a foreign vessel
when in waters of the United States. An owner,
charterer, managing operator, agent, or master
of a foreign vessel violating this section is liable
to the Government for the same penalty as an
owner, charterer, managing operator, agent, or
master of a vessel of the United States for the
same violation.
(f) DEPOSITS IN SEAMAN ACCOUNT.—By written
request signed by the seaman, a seaman employed on a passenger vessel capable of carrying
more than 500 passengers may authorize the
master, owner, or operator of the vessel, or the
employer of the seaman, to make deposits of
wages of the seaman into a checking, savings,
investment, or retirement account, or other account to secure a payroll or debit card for the
seaman if—
(1) the wages designated by the seaman for
such deposit are deposited in a United States
or international financial institution designated by the seaman;
(2) such deposits in the financial institution
are fully guaranteed under commonly accepted international standards by the government
of the country in which the financial institution is licensed;
(3) a written wage statement or pay stub, including an accounting of any direct deposit, is
delivered to the seaman no less often than
monthly; and
(4) while on board the vessel on which the
seaman is employed, the seaman is able to arrange for withdrawal of all funds on deposit in
the account in which the wages are deposited.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 567; Pub. L.
111–281, title IX, § 902(a)(2), Oct. 15, 2010, 124 Stat.
3009.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10315 ............................................

46:599

Section 10315 lists the persons to whom a seaman
may allot wages, specifies the conditions which make
an allotment valid, and provides a civil penalty of $500
for falsely claiming qualification as an allottee. It also
requires that this section be complied with before a
vessel can be cleared from a United States port. This
section applies to foreign vessels.
AMENDMENTS
2010—Subsec. (f). Pub. L. 111–281 added subsec. (f).
TRANSFER OF FUNCTIONS
Federal Savings and Loan Insurance Corporation
abolished and functions transferred, see sections 401 to
406 of Pub. L. 101–73, set out as a note under section 1437
of Title 12, Banks and Banking.

§ 10316. Trusts
Sections 10314 and 10315 of this title do not
prevent an employer from making deductions

Page 151

§ 10319

TITLE 46—SHIPPING

from the wages of a seaman, with the written
consent of the seaman, if—
(1) the deductions are paid into a trust fund
established only for the benefit of seamen employed by that employer, and the families and
dependents of those seamen (or of those seamen, families, and dependents jointly with
other seamen employed by other employers,
and the families and dependents of the other
seamen); and
(2) the payments are held in trust to provide,
from principal or interest, or both, any of the
following benefits for those seamen and their
families and dependents:
(A) medical or hospital care, or both.
(B) pensions on retirement or death of the
seaman.
(C) life insurance.
(D) unemployment benefits.
(E) compensation for illness or injuries resulting from occupational activity.
(F) sickness, accident, and disability compensation.
(G) purchasing insurance to provide any of
the benefits specified in this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 568.)
HISTORICAL AND REVISION NOTES
Revised section
10316 ............................................

Source section (U.S. Code)
46:599(g)

Section 10316 qualifies the two previous sections by
allowing an employer to make deductions from seamen’s wages for the purpose of placing the wages into
a trust fund or holding them in trust to provide for the
seamen’s benefit.

§ 10317. Loss of lien and right to wages
A master or seaman by any agreement other
than one provided for in this chapter may not
forfeit the master’s or seaman’s lien on the vessel or be deprived of a remedy to which the master or seaman otherwise would be entitled for
the recovery of wages. A stipulation in an agreement inconsistent with this chapter, or a stipulation by which a seaman consents to abandon a
right to wages if the vessel is lost, or to abandon
a right the seaman may have or obtain in the
nature of salvage, is void.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 568.)
HISTORICAL AND REVISION NOTES
Revised section
10317 ............................................

Source section (U.S. Code)
46:600

Section 10317 prohibits a master or seaman from entering into an agreement which forfeits his or her lien
on the vessel or other remedy for recovery of wages,
and renders such agreements void.

§ 10318. Wages on discharge in foreign ports
(a) When a master or seaman applies to a consular officer for the discharge of the seaman, the
consular officer shall require the master to pay
the seaman’s wages if it appears that the seaman has carried out the agreement required by
section 10302 of this title or otherwise is entitled
to be discharged. Then the consular officer shall
discharge the seaman. A consular officer shall
require the payment of extra wages only as pro-

vided in this section or in chapter 109 of this
title.
(b) When discharging a seaman, a consular officer who fails to require the payment of the
wages due a seaman at the time, and of the
extra wages due under subsection (a) of this section, is accountable to the United States Government for the total amount.
(c) A seaman discharged under this section
with the consent of the seaman is entitled to
wages up to the time of discharge, but not for
any additional period.
(d) If the seaman is discharged involuntarily,
and it appears that the discharge was not because of neglect of duty, incompetency, or injury incurred on the vessel, the master shall
provide the seaman with employment on a vessel agreed to by the seaman or shall provide the
seaman with one month’s extra wages.
(e) Expenses for the maintenance and return of
an ill or injured seaman to the United States
shall be paid by the Secretary of State. If a seaman is incapacitated by illness or injury and
prompt discharge is necessary, but a personal
appearance of the master before a consular officer is impracticable, the master may provide
transportation to the seaman to the nearest
consular officer for discharge.
(f) A deduction from wages of the seaman is
permitted only if the deduction appears in the
account of the seaman required to be delivered
under section 10310 of this title, except for matters arising after delivery of the account, in
which case a supplementary account is required.
During a voyage, the master shall record in the
official logbook the matters about which deductions are to be made with the amounts of the deductions. The entries shall be made as the matters occur. The master shall produce the official
logbook at the time of payment of wages, and
also before a competent authority on the hearing of any complaint or question about the payment of wages.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 568.)
HISTORICAL AND REVISION NOTES
Revised section
10318 ............................................

Source section (U.S. Code)
46:682
46:683

Section 10318 establishes consular officers’ responsibilities in discharging seamen and the seamen’s right
to wages when discharged and when incapacitated by
illness or injury. It also requires a master to record in
the official logbook all matters for which deductions
are to be made from seamen’s wages.

§ 10319. Costs of a criminal conviction
In a proceeding about a seaman’s wages, if it
is shown that the seaman was convicted during
the voyage of an offense by a competent tribunal and sentenced by the tribunal, the court
hearing the case may direct that a part of the
wages due the seaman, but not more than $15, be
applied to reimburse the master for costs properly incurred in procuring the conviction and
sentence.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 569.)

§ 10320

TITLE 46—SHIPPING

Page 152

HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10319 ............................................

46:707

Section 10319 provides that if a seaman was convicted
during a voyage by a tribunal, that the court may direct that up to $15 of the seaman’s wages be used to reimburse the master for the costs incurred.

AMENDMENTS
1993—Pub. L. 103–206 amended heading and text of section generally. Prior to amendment, text read as follows: ‘‘The owner, charterer, managing operator, agent,
or master of a vessel on which a seaman is carried in
violation of this chapter or a regulation prescribed
under this chapter is liable to the United States Government for a civil penalty of $200 for each seaman carried in violation. The vessel also is liable in rem for the
penalty.’’

§ 10320. Records of seamen

CHAPTER 105—COASTWISE VOYAGES

The Secretary shall prescribe regulations requiring vessel owners to maintain records of
seamen on matters of engagement, discharge,
and service. A vessel owner shall make these
records available to the seaman and the Coast
Guard on request.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 569; Pub. L.
103–206, title IV, § 411, Dec. 20, 1993, 107 Stat.
2437.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10320 ............................................

..............................................

Section 10320 authorizes the Secretary to provide for
the maintenance of records of the engagement, discharge, or service of seamen.
AMENDMENTS
1993—Pub. L. 103–206 amended heading and text of section generally. Prior to amendment, text read as follows: ‘‘The Secretary may prescribe regulations for reporting by a master of matters about the engagement,
discharge, or service of seamen that may be needed in
keeping central records of seamen.’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

(a) A person violating any provision of this
chapter or a regulation prescribed under this
chapter is liable to the United States Government for a civil penalty of not more than $5,000.
(b) The vessel is liable in rem for any penalty
assessed under this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 569; Pub. L.
103–206, title IV, § 412, Dec. 20, 1993, 107 Stat.
2437.)
HISTORICAL AND REVISION NOTES
Revised section

10501.
10502.
10503.
10504.
10505.
10506.
[10507.
10508.
10509.

Application.
Shipping articles agreements.
Exhibiting merchant mariners’ documents.
Wages.
Advances.
Trusts.
Repealed.]
General penalties.
Penalty for failing to begin voyage.
AMENDMENTS

1993—Pub. L. 103–206, title IV, § 415(b), Dec. 20, 1993, 107
Stat. 2438, struck out item 10507 ‘‘Duties of shipping
commissioners’’.

§ 10501. Application
(a) Except for a vessel to which chapter 103 of
this title applies, this chapter applies to a vessel
of at least 50 gross tons as measured under section 14502 of this title, or an alternate tonnage
measured under section 14302 of this title as prescribed by the Secretary under section 14104 of
this title on a voyage between a port in one
State and a port in another State (except an adjoining State).
(b) This chapter does not apply to a vessel on
which the seamen are entitled by custom or
agreement to share in the profit or result of a
voyage.
(c) Unless otherwise provided, this chapter
does not apply to a foreign vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 570; Pub. L.
104–324, title VII, § 738, Oct. 19, 1996, 110 Stat.
3941.)
HISTORICAL AND REVISION NOTES
Revised section

§ 10321. General penalty

10321 ............................................

Sec.

Source section (U.S. Code)
46:567
46:568
46:571
46:661
46:665

Section 10321 makes a vessel on which a seaman is
carried to sea in violation of this chapter or regulation
prescribed under this chapter liable in rem to the
United States Government for a civil penalty of $200 for
each seaman carried in violation.

Source section (U.S. Code)

10501 ............................................

46:574

Section 10501 specifies that vessels over 50 gross tons
that are not subject to chapter 103 and are engaged on
voyages between two states (except for adjoining
states) are subject to the provisions of this chapter.
Specifically excluded are foreign vessels and vessels on
which seamen share the profits.
AMENDMENTS
1996—Subsec. (a). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘50 gross tons’’.

§ 10502. Shipping articles agreements
(a) The owner, charterer, managing operator,
master, or individual in charge shall make a
shipping agreement in writing with each seaman
before the seaman commences employment.
(b) The agreement shall include the date and
hour on which the seaman must be on board to
begin the voyage.

Page 153

TITLE 46—SHIPPING

(c) The agreement may not contain a provision on the allotment of wages or a scale of provisions.
(d) Each shipping agreement must be signed
by the master or individual in charge or a representative of the owner, charterer, or managing
operator, and by each seaman employed.
(e) The owner, charterer, managing operator,
master, or individual in charge shall maintain
the shipping agreement and make the shipping
agreement available to the seaman.
(f) The Secretary shall prescribe regulations
requiring shipping companies to maintain
records of seamen on matters of engagement,
discharge, and service. The shipping companies
shall make these records available to the seaman and the Coast Guard on request.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 570; Pub. L.
103–206, title IV, § 413, Dec. 20, 1993, 107 Stat.
2437.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10502 ............................................

46:574

Section 10502 requires the master on a vessel engaged
on a coastwise voyage to sign a shipping agreement
with each member of the crew and lists provisions
which must be and provisions which may not be included in the agreement.
AMENDMENTS
1993—Subsec. (a). Pub. L. 103–206, § 413(1), amended
subsec. (a) generally. Prior to amendment, subsec. (a)
read as follows: ‘‘Before proceeding on a voyage, the
master of a vessel to which this chapter applies shall
make a shipping articles agreement in writing with
each seaman on board, declaring the nature of the voyage or the period of time for which the seaman is engaged.’’
Subsecs. (d) to (f). Pub. L. 103–206, § 413(2), added subsecs. (d) to (f).
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 10503. Exhibiting merchant mariners’ documents
Before signing the agreement required by section 10502 of this title, a seaman required by section 8701 of this title to have a merchant mariner’s document shall exhibit to the master a
document issued to the seaman and appropriately endorsed for the capacity in which the
seaman is to serve.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 570.)
HISTORICAL AND REVISION NOTES
Revised section
10503 ............................................

Source section (U.S. Code)
46:643

Under section 10503 seamen who are required to have
a merchant mariner’s document must exhibit it before
signing a shipping agreement on a coastwise voyage.

§ 10504

§ 10504. Wages
(a) After the beginning of a voyage, a seaman
is entitled to receive from the master, on demand, one-half of the balance of wages earned
and unpaid at each port at which the vessel
loads or delivers cargo during the voyage. A demand may not be made before the expiration of
5 days from the beginning of the voyage, not
more than once in 5 days, and not more than
once in the same port on the same entry. If a
master does not comply with this subsection,
the seaman is released from the agreement required by section 10502 of this title and is entitled to payment of all wages earned. Notwithstanding a release signed by a seaman under section 10312 of this title, a court having jurisdiction may set aside, for good cause shown, the release and take action that justice requires. This
subsection does not apply to a fishing or whaling
vessel or a yacht.
(b) The master shall pay a seaman the balance
of wages due the seaman within 2 days after the
termination of the agreement required by section 10502 of this title or when the seaman is discharged, whichever is earlier.
(c)(1) Subject to subsection (d), and except as
provided in paragraph (2), when payment is not
made as provided under subsection (b) of this
section without sufficient cause, the master or
owner shall pay to the seaman 2 days’ wages for
each day payment is delayed.
(2) The total amount required to be paid under
paragraph (1) with respect to all claims in a
class action suit by seamen on a passenger vessel capable of carrying more than 500 passengers
for wages under this section against a vessel
master, owner, or operator or the employer of
the seamen shall not exceed ten times the unpaid wages that are the subject of the claims.
(3) A class action suit for wages under this
subsection must be commenced within three
years after the later of—
(A) the date of the end of the last voyage for
which the wages are claimed; or
(B) the receipt, by a seaman who is a claimant in the suit, of a payment of wages that are
the subject of the suit that is made in the ordinary course of employment.
(d) Subsections (b) and (c) of this section do
not apply to:
(1) a vessel engaged in coastwise commerce.
(2) a yacht.
(3) a fishing vessel.
(4) a whaling vessel.
(e) This section applies to a seaman on a foreign vessel when in harbor of the United States.
The courts are available to the seaman for the
enforcement of this section.
(f) DEPOSITS IN SEAMAN ACCOUNT.—On written
request signed by the seaman, a seaman employed on a passenger vessel capable of carrying
more than 500 passengers may authorize, the
master, owner, or operator of the vessel, or the
employer of the seaman, to make deposits of
wages of the seaman into a checking, savings,
investment, or retirement account, or other account to secure a payroll or debit card for the
seaman if—
(1) the wages designated by the seaman for
such deposit are deposited in a United States

§ 10505

TITLE 46—SHIPPING

Page 154

or international financial institution designated by the seaman;
(2) such deposits in the financial institution
are fully guaranteed under commonly accepted international standards by the government
of the country in which the financial institution is licensed;
(3) a written wage statement or pay stub, including an accounting of any direct deposit, is
delivered to the seaman no less often than
monthly; and
(4) while on board the vessel on which the
seaman is employed, the seaman is able to arrange for withdrawal of all funds on deposit in
the account in which the wages are deposited.

(b) A person demanding or receiving from a
seaman or an individual seeking employment as
a seaman, remuneration for providing the seaman or individual with employment, is liable to
the Government for a civil penalty of not more
than $5,000.
(c) The owner, charterer, managing operator,
agent, or master of a vessel seeking clearance
from a port of the United States shall present
the agreement required by section 10502 of this
title at the office of clearance. Clearance may be
granted to a vessel only if this section has been
complied with.
(d) This section does not apply to a fishing or
whaling vessel or a yacht.

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 570; Pub. L.
99–36, § 1(a)(5), May 15, 1985, 99 Stat. 67; Pub. L.
99–640, § 10(b)(4), (5), Nov. 10, 1986, 100 Stat. 3550;
Pub. L. 111–281, title IX, § 902(b), Oct. 15, 2010, 124
Stat. 3009.)

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 571; Pub. L.
99–640, § 10(b)(4), Nov. 10, 1986, 100 Stat. 3550; Pub.
L. 103–206, title IV, § 414, Dec. 20, 1993, 107 Stat.
2437.)
HISTORICAL AND REVISION NOTES

HISTORICAL AND REVISION NOTES
Revised section
Revised section

Source section (U.S. Code)

10504 ............................................

46:596
46:597
46:598

Section 10504 specifies when seamen on coastwise
voyages may obtain portions of their wages. The section does not apply to fishing vessels, whaling vessels
or yachts, and portions of it do not apply to vessels
taking oysters. It does apply to foreign vessels while in
United States ports.
AMENDMENTS
2010—Subsec. (c). Pub. L. 111–281, § 902(b)(1), designated existing provisions as par. (1), substituted
‘‘Subject to subsection (d), and except as provided in
paragraph (2), when’’ for ‘‘When’’, and added pars. (2)
and (3).
Subsec. (f). Pub. L. 111–281, § 902(b)(2), added subsec.
(f).
1986—Subsec. (a). Pub. L. 99–640, § 10(b)(4), struck out
last sentence which read as follows: ‘‘However, this
subsection applies to a vessel taking oysters.’’
Subsec. (d)(3). Pub. L. 99–640, § 10(b)(5), struck out
‘‘(except a vessel taking oysters)’’ after ‘‘vessel’’.
1985—Subsec. (d). Pub. L. 99–36 amended subsec. (d)
generally, thereby including reference to a vessel engaged in coastwise commerce.
EFFECTIVE DATE OF 1985 AMENDMENT
Pub. L. 99–36, § 1(b), May 15, 1985, 99 Stat. 68, provided
that: ‘‘The effective date of subsection (a)(5) of this section [amending this section] is August 26, 1983.’’

§ 10505. Advances
(a)(1) A person may not—
(A) pay a seaman wages in advance of the
time when the seaman has earned the wages;
(B) pay advance wages of the seaman to another person; or
(C) make to another person an order, note,
or other evidence of indebtedness of the wages,
or pay another person, for the engagement of
seamen when payment is deducted or to be deducted from the seaman’s wage.
(2) A person violating this subsection is liable
to the United States Government for a civil penalty of not more than $5,000. A payment made in
violation of this subsection does not relieve the
vessel or the master from the duty to pay all
wages after they have been earned.

Source section (U.S. Code)

10505 ............................................

46:598
46:599

Section 10505 prohibits any person from paying a seaman on a coastwise voyage advance wages, or to pay to
another person any form of a seaman’s wages prior to
the commencement of the seaman’s employment. It
also prohibits a person from seeking or receiving remuneration for providing a seaman with employment.
This section also requires that a vessel comply with
this section before clearing port. It provides penalties
for offenses of its provisions. The section does not
apply to fishing vessels, whaling vessels, or yachts, but
does apply to vessels taking oysters.
AMENDMENTS
1993—Subsec. (a)(2). Pub. L. 103–206, § 414(1), substituted ‘‘$5,000’’ for ‘‘$100’’.
Subsec. (b). Pub. L. 103–206, § 414(2), substituted
‘‘$5,000’’ for ‘‘$500’’.
1986—Subsec. (d). Pub. L. 99–640 struck out last sentence which read as follows: ‘‘However, this section applies to a vessel taking oysters.’’

§ 10506. Trusts
Section 10505 of this title does not prevent an
employer from making deductions from the
wages of a seaman, with the written consent of
the seaman, if—
(1) the deductions are paid into a trust fund
established only for the benefit of seamen employed by that employer, and the families and
dependents of those seamen (or of those seamen, families, and dependents jointly with
other seamen employed by other employers,
and the families and dependents of the other
seamen); and
(2) the payments are held in trust to provide,
from principal or interest, or both, any of the
following benefits for those seamen and their
families and dependents:
(A) medical or hospital care, or both.
(B) pensions on retirement or death of the
seaman.
(C) life insurance.
(D) unemployment benefits.
(E) compensation for illness or injuries resulting from occupational activity.
(F) sickness, accident, and disability compensation.

Page 155

§ 10601

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

(G) purchasing insurance to provide any of
the benefits specified in this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 571.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10506 ............................................

46:599

Section 10506 permits deductions to be made from
wages of seamen on coastwise voyages if the deductions
are to be used for the benefit of the seamen or their
families.

Revised section

Source section (U.S. Code)

10509 ............................................

46:576

This section provides for a reduction in the wages of
seamen who arrive late for voyages, if their late arrival
is noted in the official logbook. It does not apply to
fishing vessels, whaling vessels or yachts.

CHAPTER 106—FISHING VOYAGES
Sec.

10601.
10602.

Fishing agreements.
Recovery of wages and shares of fish under
agreement.
Seaman’s duty to notify employer regarding
illness, disability, and injury.

[§ 10507. Repealed. Pub. L. 103–206, title IV,
§ 415(a), Dec. 20, 1993, 107 Stat. 2438]

10603.

Section, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 571, related to duties of shipping commissioners.

§ 10601. Fishing agreements

§ 10508. General penalties
(a) A master who carries a seaman on a voyage
without first making the agreement required by
section 10502 of this title shall pay to the seaman the highest wage that was paid for a similar voyage within the 3 months before the time
of engagement at the port or place at which the
seaman was engaged. A seaman who has not
signed an agreement is not bound by the applicable regulations, penalties, or forfeitures.
(b) A master engaging a seaman in violation of
this chapter or a regulation prescribed under
this chapter is liable to the United States Government for a civil penalty of not more than
$5,000. The vessel also is liable in rem for the
penalty.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 572; Pub. L.
103–206, title IV, § 416, Dec. 20, 1993, 107 Stat.
2438.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10508 ............................................

46:575

Section 10508 provides for a fair wage to be paid to a
seaman who was engaged without a shipping agreement, and also exempts the seaman under certain conditions from applicable regulations, penalties or forfeitures. It also provides a penalty for violation of its
provisions.

(a) Before proceeding on a voyage, the owner,
charterer, or managing operator, or a representative thereof, including the master or individual
in charge, of a fishing vessel, fish processing vessel, or fish tender vessel shall make a fishing
agreement in writing with each seaman employed on board if the vessel is—
(1) at least 20 gross tons as measured under
section 14502 of this title, or an alternate tonnage measured under section 14302 of this title
as prescribed by the Secretary under section
14104 of this title; and
(2) on a voyage from a port in the United
States.
(b) The agreement shall—
(1) state the period of effectiveness of the
agreement;
(2) include the terms of any wage, share, or
other compensation arrangement peculiar to
the fishery in which the vessel will be engaged
during the period of the agreement; and
(3) include other agreed terms.
(Pub. L. 100–424, § 6(a), Sept. 9, 1988, 102 Stat.
1591; Pub. L. 104–324, title VII, § 739, Oct. 19, 1996,
110 Stat. 3942; Pub. L. 107–295, title IV, § 441(a),
(b), Nov. 25, 2002, 116 Stat. 2131.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10601 ............................................

46:531

AMENDMENTS
AMENDMENTS
1993—Subsec. (b). Pub. L. 103–206 substituted ‘‘not
more than $5,000’’ for ‘‘$20’’.

§ 10509. Penalty for failing to begin voyage
(a) A seaman who fails to be on board at the
time contained in the agreement required by
section 10502 of this title, without having given
24 hours’ notice of inability to do so, shall forfeit, for each hour’s lateness, one-half of one
day’s pay to be deducted from the seaman’s
wages if the lateness is recorded in the official
logbook on the date of the violation.
(b) A seaman who does not report at all or subsequently deserts forfeits all wages.
(c) This section does not apply to a fishing or
whaling vessel or a yacht.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 572.)

2002—Subsec. (a). Pub. L. 107–295, § 441(a), (b)(1), in introductory provisions, inserted ‘‘owner, charterer, or
managing operator, or a representative thereof, including the’’ after ‘‘on a voyage, the’’ and comma after ‘‘individual in charge’’ and substituted ‘‘employed’’ for
‘‘enployed’’.
Subsecs. (b), (c). Pub. L. 107–295, § 441(b)(2), (3), redesignated subsec. (c) as (b) and struck out former subsec.
(b) which read as follows: ‘‘The agreement shall be
signed also by the owner of the vessel.’’
1996—Subsec. (a)(1). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘20 gross tons’’.
AGREEMENTS DEEMED COMPLIANT
Pub. L. 107–295, title IV, § 441(c), Nov. 25, 2002, 116
Stat. 2131, as amended by Pub. L. 108–199, div. H,
§ 137(a), Jan. 23, 2004, 118 Stat. 442, provided that: ‘‘An
agreement that complies with the requirements of sec-

§ 10602

TITLE 46—SHIPPING

Page 156

tion 10601(a) of title 46, United States Code, as herein
amended, is hereby deemed to have been in compliance
with subsections (a) and (b) of section 10601 of title 46,
United States Code, as in effect prior to November 25,
2002.’’
[Pub. L. 108–199, div. H, § 137(b), Jan. 23, 2004, 118 Stat.
442, provided that: ‘‘The amendments made by subsection (a) [amending section 441(c) of Pub. L. 107–295,
set out above] apply to all proceedings pending on or
commenced after the date of enactment of this Act
[Jan. 23, 2004].’’]

Sec.

§ 10602. Recovery of wages and shares of fish
under agreement

1993—Pub. L. 103–206, title IV, § 420(b), Dec. 20, 1993, 107
Stat. 2438, struck out item 10707 ‘‘Delivery to district
court’’.

(a) When fish caught under an agreement
under section 10601 of this title are delivered to
the owner of the vessel for processing and are
sold, the vessel is liable in rem for the wages
and shares of the proceeds of the seamen. An action under this section must be brought within
six months after the sale of the fish.
(b)(1) In an action under this section, the
owner shall produce an accounting of the sale
and division of proceeds under the agreement. If
the owner fails to produce the accounting, the
vessel is liable for the highest value alleged for
the shares.
(2) The owner may offset the value of general
supplies provided for the voyage and other supplies provided the seaman bringing the action.
(c) This section does not affect a common law
right of a seaman to bring an action to recover
the seaman’s share of the fish or proceeds.

10704.
10705.
10706.
[10707.
10708.
10709.
10710.
10711.

Duties of consular officers.
Disposition of money, property, and wages by
consular officers.
Seamen dying in the United States.
Repealed.]
Sale of property.
Distribution.
Unclaimed money, property, and wages.
Penalties.
AMENDMENTS

§ 10701. Application
(a) Except as otherwise specifically provided,
this chapter applies to a vessel on a voyage between—
(1) a port of the United States and a port in
a foreign country (except a port in Canada,
Mexico, and the West Indies); and
(2) a port of the United States on the Atlantic Ocean and a port of the United States on
the Pacific Ocean.
(b) This chapter does not apply to a vessel on
which a seaman by custom or agreement is entitled to share in the profit or result of a voyage.
(c) This chapter does not apply to a foreign
vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 572.)
HISTORICAL AND REVISION NOTES

(Pub. L. 100–424, § 6(a), Sept. 9, 1988, 102 Stat.
1592.)

Revised section

HISTORICAL AND REVISION NOTES

10701 ............................................

Revised section
10602 ............................................

Source section (U.S. Code)
46:533, 534

§ 10603. Seaman’s duty to notify employer regarding illness, disability, and injury
(a) A seaman on a fishing vessel, fish processing vessel, or fish tender vessel shall notify the
master or individual in charge of the vessel or
other agent of the employer regarding any illness, disability, or injury suffered by the seaman when in service to the vessel not later than
seven days after the date on which the illness,
disability, or injury arose.
(b) The Secretary shall prescribe regulations
requiring that each fishing vessel, fish processing vessel, and fish tender vessel shall have on
board a placard displayed in a prominent location accessible to the crew describing the seaman’s duty under subsection (a) of this section.
(Pub. L. 100–424, § 6(a), Sept. 9, 1988, 102 Stat.
1592.)
HISTORICAL AND REVISION NOTES
Revised section
10603 ............................................

Source section (U.S. Code)

Source section (U.S. Code)
46:621

Section 10701 provides that the provisions in chapter
107 apply to vessels on voyages between U.S. ports and
foreign countries (except Canada, Mexico, or the West
Indies) and between United States ports on the Atlantic and United States ports on the Pacific. It does not
apply to foreign vessels or vessels on which the seamen
share the profits.

§ 10702. Duties of masters
(a) When a seaman dies during a voyage, the
master shall take charge of the seaman’s money
and property. An entry shall be made in the official logbook, signed by the master, the chief
mate, and an unlicensed crewmember containing
an inventory of the money and property and a
statement of the wages due the seaman, with
the total of the deductions to be made.
(b) On compliance with this chapter, the master shall obtain a written certificate of compliance from the consular officer or court clerk.
Clearance may be granted to a foreign-bound
vessel only when the certificate is received at
the office of customs.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 572; Pub. L.
103–206, title IV, § 422(a), Dec. 20, 1993, 107 Stat.
2438.)

New

HISTORICAL AND REVISION NOTES

CHAPTER 107—EFFECTS OF DECEASED
SEAMEN

Revised section
10702 ............................................

Source section (U.S. Code)
46:621

Sec.

10701.
10702.
10703.

Application.
Duties of masters.
Procedures of masters.

Section 10702 requires a master to take charge of the
property of a deceased seaman, make note in the official logbook that the property was taken and obtain a

Page 157

§ 10708

TITLE 46—SHIPPING

certificate of compliance from a shipping commissioner
which must be exhibited for port clearance of foreign
bound vessels.
AMENDMENTS
1993—Subsec. (b). Pub. L. 103–206 substituted ‘‘the
consular officer or court clerk’’ for ‘‘a shipping commissioner’’.

§ 10703. Procedures of masters
(a) If the vessel is proceeding to the United
States when a seaman dies, the master shall deliver the seaman’s money, property, and wages
when the agreement required by this part is
ended, as provided in section 10706 of this title.
(b) If the vessel touches at a foreign port after
the death of the seaman, the master shall report
to the first available consular officer. The consular officer may require the master to deliver
to the officer the money, property, and wages of
the seaman. The consular officer shall give the
master a receipt for the matters delivered and
certify on the agreement the particulars of the
delivery. When the agreement ends, the master
shall deliver the receipt to a district court of
the United States.
(c) If the consular officer does not require the
master to deliver the seaman’s money, property,
and wages, the officer shall so certify on the
agreement, and the master shall dispose of the
money, property, and wages as provided under
section 10706 of this title.
(d) A deduction from the account of a deceased
seaman is valid only if certified by a proper
entry in the official logbook.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 573; Pub. L.
103–206, title IV, § 418, Dec. 20, 1993, 107 Stat.
2438.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10703 ............................................

46:622

Section 10703 provides for the disposal by the master
of the property and wages of deceased seamen who have
died outside the United States.
AMENDMENTS
1993—Subsec. (a). Pub. L. 103–206, § 418(1), substituted
‘‘in section 10706 of this title’’ for ‘‘by regulations prescribed by the Secretary’’.
Subsec. (b). Pub. L. 103–206, § 418(2), substituted ‘‘to a
district court of the United States’’ for ‘‘as prescribed
by regulations’’.
Subsec. (c). Pub. L. 103–206, § 418(3), substituted ‘‘section 10706 of this title’’ for ‘‘subsection (a) of this section’’.

§ 10704. Duties of consular officers
When a seaman dies outside the United States
leaving money or property not on board a vessel,
the consular officer nearest the place at which
the money and property is located shall claim
and take charge of it.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 573.)
HISTORICAL AND REVISION NOTES
Revised section
10704 ............................................

Source section (U.S. Code)
46:624

Section 10704 requires consular officers to take
charge of the property (not left on board a vessel) of de-

ceased seamen who have died outside the United
States.

§ 10705. Disposition of money, property, and
wages by consular officers
When money, property, or wages of a deceased
seaman comes into possession of a consular officer, the officer may—
(1) sell the property and remit the proceeds
and other money or wages of the seaman the
officer has received, to the district court of
the United States for the district in which the
voyage begins or ends; or
(2) deliver the money, property, and wages to
the district court.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 573.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10705 ............................................

46:624

Section 10705 instructs consular officers on the disposal of the property and wages of deceased seamen
who have died outside the United States.

§ 10706. Seamen dying in the United States
When a seaman dies in the United States and
is entitled at death to claim money, property, or
wages from the master or owner of a vessel on
which the seaman served, the master or owner
shall deliver the money, property, and wages to
a district court of the United States within one
week of the seaman’s death. If the seaman’s
death occurs at sea, such money, property, or
wages shall be delivered to a district court or a
consular officer within one week of the vessel’s
arrival at the first port call after the seaman’s
death.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 573; Pub. L.
103–206, title IV, § 419, Dec. 20, 1993, 107 Stat.
2438.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10706 ............................................

46:625

Section 10706 provides for the disposal by the master
of the property and wages of deceased seamen who have
died in the United States.
AMENDMENTS
1993—Pub. L. 103–206 substituted ‘‘to a district court
of the United States within one week of the seaman’s
death. If the seaman’s death occurs at sea, such money,
property, or wages shall be delivered to a district court
or a consular officer within one week of the vessel’s arrival at the first port call after the seaman’s death.’’
for ‘‘as provided by regulations prescribed by the Secretary.’’.

[§ 10707. Repealed. Pub. L. 103–206, title IV,
§ 420(a), Dec. 20, 1993, 107 Stat. 2438]
Section, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 573, related to delivery to district court of money, property, and
wages of a deceased seaman.

§ 10708. Sale of property
A district court of the United States may direct the sale of any part of the property of a deceased seaman. Proceeds of the sale shall be held
as wages of the seaman are held.

§ 10709

TITLE 46—SHIPPING

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 574.)
HISTORICAL AND REVISION NOTES

Page 158

claimed Moneys of Individuals Whose Whereabouts are Unknown’’.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 574.)

Revised section

Source section (U.S. Code)

10708 ............................................

HISTORICAL AND REVISION NOTES

46:628

Revised section

Section 10708 permits a district court to sell a deceased seaman’s property and treat the proceeds as
wages.

§ 10709. Distribution
(a)(1) If the money, property, and wages of a
seaman, including proceeds from the sale of
property, are not more than $1,500 in value, the
court, subject to deductions it allows for expenses and at least 60 days after receiving the
money, property, and wages, may deliver the
money, property, and wages to a claimant proving to be—
(A) the seaman’s surviving spouse or child;
(B) entitled to the money, property, and
wages under the seaman’s will or under a law
or at common law; or
(C) entitled to secure probate, or take out
letters of administration, although no probate
or letters of administration have been issued.
(2) The court is released from further liability
for the money, property, and wages distributed
under paragraph (1) of this subsection.
(3) Instead of acting under paragraphs (1) and
(2) of this subsection, the court may require probate or letters of administration to be taken
out, and then deliver the money, property, and
wages to the legal representative of the seaman.
(b) If the money, property, and wages are more
than $1,500 in value, the court, subject to deductions for expenses, shall deliver the money,
property, and wages to the legal representative
of the seaman.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 574; Pub. L.
99–307, § 1(15), May 19, 1986, 100 Stat. 446.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10709 ............................................

46:627

Section 10709 instructs a district court to deliver a
deceased seaman’s property and wages to the proper
claimant or legal representative. It also discharges the
court from liability.
AMENDMENTS
1986—Subsec. (a)(1). Pub. L. 99–307, in text preceding
cl. (A), substituted ‘‘than $1,500 in value, the court,’’ for
‘‘then $1,500 in value, and’’ and ‘‘wages, may’’ for
‘‘wages, the court may’’.

§ 10710. Unclaimed money, property, and wages
(a) When a claim for the money, property, or
wages of a deceased seaman held by a district
court of the United States has not been substantiated within 6 years after their receipt by the
court, the court, if a subsequent claim is made,
may allow or refuse the claim.
(b) If, after money, property, and wages have
been held by the court for 6 years, it appears to
the court that no claim will have to be satisfied,
the property shall be sold. The money and wages
and the proceeds from the sale shall be deposited
in the Treasury trust fund receipt account ‘‘Un-

10710 ............................................

Source section (U.S. Code)
46:628

Section 10710 provides that if no claim is made to a
deceased seaman’s property and wages within six years,
the court shall sell the property and deposit the proceeds into the Treasury trust fund receipt account
‘‘Unclaimed Moneys of Individuals Whose Whereabouts
are Unknown’’.

§ 10711. Penalties
An owner or master violating this chapter are
each liable to the United States Government for
a civil penalty of 3 times the value of the seaman’s money, property, and wages involved or,
if the value is not determined, of $200.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 574.)
HISTORICAL AND REVISION NOTES
Revised section
10711 ............................................

Source section (U.S. Code)
46:623

Section 10711 provides penalties for masters and owners violating this chapter.

CHAPTER 109—PROCEEDINGS ON
UNSEAWORTHINESS
Sec.

10901.
10902.
10903.
10904.
10905.
10906.
10907.
10908.

Application.
Complaints of unfitness.
Proceedings on examination of vessel.
Refusal to proceed.
Complaints in foreign ports.
Discharge of crew for unsuitability.
Permission to make complaint.
Penalty for sending unseaworthy vessel to
sea.

§ 10901. Application
This chapter applies to a vessel of the United
States except a fishing or whaling vessel or a
yacht.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 575.)
HISTORICAL AND REVISION NOTES
Revised section
10901 ............................................

Source section (U.S. Code)
46:653
46:654
46:655
46:656
46:658

Section 10901 provides that chapter 109 applies to all
vessels of the United States except fishing vessels,
whaling vessels or yachts.

§ 10902. Complaints of unfitness
(a)(1) If the chief and second mates or a majority of the crew of a vessel ready to begin a voyage discover, before the vessel leaves harbor,
that the vessel is unfit as to crew, hull, equipment, tackle, machinery, apparel, furniture,
provisions of food or water, or stores to proceed
on the intended voyage and require the unfitness to be inquired into, the master immediately shall apply to the district court of the

Page 159

§ 10903

TITLE 46—SHIPPING

United States at the place at which the vessel is
located, or, if no court is being held at the place
at which the vessel is located, to a judge or justice of the peace, for the appointment of surveyors. At least 2 complaining seamen shall accompany the master to the judge or justice of the
peace.
(2) A master failing to comply with this subsection is liable to the United States Government for a civil penalty of $500.
(b)(1) Any 3 seamen of a vessel may complain
that the provisions of food or water for the crew
are, at any time, of bad quality, unfit for use, or
deficient in quantity. The complaint may be
made to the Secretary, commanding officer of a
United States naval vessel, consular officer, or
chief official of the Customs Service.
(2) The Secretary, officer, or official shall examine, or have examined, the provisions of food
or water. If the provisions are found to be of bad
quality, unfit for use, or deficient in quantity,
the person making the findings shall certify to
the master of the vessel which provisions are of
bad quality, unfit for use, or deficient.
(3) The Secretary, officer, or official to whom
the complaint was made shall—
(A) make an entry in the official logbook of
the vessel on the results of the examination;
and
(B) submit a report on the examination to
the district court of the United States at
which the vessel is to arrive, with the report
being admissible into evidence in any legal
proceeding.
(4) The master is liable to the Government for
a civil penalty of not more than $100 each time
the master, on receiving the certification referred to in paragraph (2) of this subsection—
(A) does not provide other proper provisions
of food or water, when available, in place of
the provisions certified as of bad quality or
unfit for use;
(B) does not obtain sufficient provisions
when the certification includes a finding of a
deficiency in quantity; or
(C) uses provisions certified to be of bad
quality or unfit for use.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 575; Pub. L.
103–206, title IV, § 422(b), Dec. 20, 1993, 107 Stat.
2439.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10902(a) ........................................
10902(b) ........................................

46:653
46:662

Section 10902 instructs the crew on making complaints of unfitness of vessel with regard to equipment
and provisions, and instructs the master on responding
to those complaints, and provides a penalty for violations.
AMENDMENTS
1993—Subsec. (b)(1). Pub. L. 103–206, § 422(b)(1), inserted ‘‘Secretary,’’ after ‘‘The complaint may be made
to the’’ and struck out ‘‘Coast Guard shipping commissioner,’’ after ‘‘consular officer,’’.
Subsec. (b)(2), (3). Pub. L. 103–206, § 422(b)(2), substituted ‘‘The Secretary, officer,’’ for ‘‘The officer,
commissioner,’’.

TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the
Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.

§ 10903. Proceedings on examination of vessel
(a) On application made under section 10902(a)
of this title, the judge or justice of the peace
shall appoint 3 experienced and skilled marine
surveyors to examine the vessel for the defects
or insufficiencies complained of. The surveyors
have the authority to receive and consider evidence necessary to evaluate the complaint.
When the complaint involves provisions of food
or water, one of the surveyors shall be a medical
officer of the Public Health Service, if available.
The surveyors shall make a report in writing,
signed by at least 2 of them, stating whether the
vessel is fit to proceed to sea or, if not, in what
respect it is unfit, making appropriate recommendations about additional seamen, provisions, or stores, or about physical repairs, alterations, or additions necessary to make the vessel fit.
(b) On receiving the report, the judge or justice of the peace shall endorse on the report the
judgment of the judge or justice on whether the
vessel is fit to proceed on the voyage, and, if
not, whether the vessel may proceed to another
port at which the deficiencies can be corrected.
The master and the crew shall comply with the
judgment.
(c) The master shall pay all costs of the survey, report, and judgment. However, if the complaint of the crew appears in the report and
judgment to have been without foundation, or if
the complaint involved provisions of food or
water, without reasonable grounds, the master
or owner may deduct the amount of the costs
and reasonable damages for the detention of the
vessel, as determined by the judge or justice of
the peace, from the wages of the complaining
seamen.
(d) A master of a vessel violating this section
who refuses to pay the costs and wages is liable
to the United States Government for a civil penalty of $100 and is liable in damages to each person injured by the refusal.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 575.)
HISTORICAL AND REVISION NOTES
Revised section
10903(a), (b) ..................................
10903(c) ........................................
10903(d) ........................................

Source section (U.S. Code)
46:654
46:659
46:660

Section 10903 provides for marine surveyors appointed
by a judge or justice of the peace to inspect a vessel on
which a complaint of unfitness was made, for a judge or
justice of the peace to judge the fitness based on the
findings, and for the payment of costs of the inspection
by the master or the crew. It also includes a penalty for
noncompliance.

§ 10904

TITLE 46—SHIPPING

§ 10904. Refusal to proceed
After a judgment under section 10903 of this
title that a vessel is fit to proceed on the intended voyage, or after the order of a judgment
to make up deficiencies is complied with, if a
seaman does not proceed on the voyage, the unpaid wages of the seaman are forfeited.

Page 160

wishes to make a complaint authorized by this
chapter.
(b) A master violating this section is liable to
the United States Government for civil penalty
of $500.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 577.)
HISTORICAL AND REVISION NOTES

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 576.)
Revised section

HISTORICAL AND REVISION NOTES
Revised section
10904 ............................................

46:655

§ 10905. Complaints in foreign ports
(a) When a complaint under section 10902(a) of
this title is made in a foreign port, the procedures of this chapter shall be followed, with a
consular officer performing the duties of the
judge or justice of the peace.
(b) On review of the marine surveyors’ report,
the consular officer may approve and must certify any part of the report with which the officer
agrees. If the consular officer dissents from any
part of the report, the officer shall certify reasons for dissenting from that part.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 576.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)
46:656
46:657

Section 10905 provides that if a complaint of unfitness
is made in a foreign port, a consular officer shall perform the duties of a judge or justice of the peace.

§ 10906. Discharge of crew for unsuitability
When a survey is made at a foreign port, the
surveyors shall state in the report whether, in
their opinion, the vessel had been sent to sea unsuitably provided in any important particular,
by neglect or design or through mistake or accident. If by neglect or design, and the consular
officer approves the finding, the officer shall discharge a seaman requesting discharge and shall
require the master to pay one month’s wages to
that seaman in addition to wages then due, or
sufficient money for the return of the seaman to
the nearest and most convenient port of the
United States, whichever is the greater amount.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 576.)
HISTORICAL AND REVISION NOTES
Revised section
10906 ............................................

10907 ............................................

Source section (U.S. Code)

Section 10904 provides that if a vessel is found fit to
proceed by a judge or justice of the peace and a seaman
refuses to proceed, the seaman shall forfeit any unpaid
wages.

10905 ............................................

Source section (U.S. Code)

Source section (U.S. Code)
46:658

Section 10906 provides that if a consular officer finds
that a vessel has been sent to sea in an unsuitable
state, a crew member requesting discharge must be
paid one month’s additional wages and passage to the
United States.

§ 10907. Permission to make complaint
(a) A master may not refuse to permit, deny
the opportunity to, or hinder a seaman who

46:653
46:664

Section 10907 prohibits a master from hindering a seaman from making a complaint authorized by this chapter and subjects the master to a fine for violation of
this section.

§ 10908. Penalty for sending unseaworthy vessel
to sea
A person that knowingly sends or attempts to
send, or that is a party to sending or attempting
to send, a vessel of the United States to sea, in
an unseaworthy state that is likely to endanger
the life of an individual, shall be fined not more
than $1,000, imprisoned for not more than 5
years, or both.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 577.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

10908 ............................................

46:658

Section 10908 provides a penalty for a person knowingly sending or attempting to send an unseaworthy
vessel to sea.

CHAPTER 111—PROTECTION AND RELIEF
Sec.

11101.
11102.
11103.
11104.
11105.
11106.
11107.
11108.
11109.
11110.
11111.
11112.

Accommodations for seamen.
Medicine chests.
Slop chests.
Destitute seamen.
Wages on discharge when vessel sold.
Wages on justifiable complaint of seamen.
Unlawful engagements void.
Taxes.
Attachment of wages.
Seamen’s clothing.
Limit on amount recoverable on voyage.
Master’s lien for wages.
AMENDMENTS

1986—Pub. L. 99–307, § 1(19)(A), May 19, 1986, 100 Stat.
446, added item 11112.

§ 11101. Accommodations for seamen
(a) On a merchant vessel of the United States
the construction of which began after March 4,
1915 (except a yacht, pilot vessel, or vessel of
less than 100 gross tons as measured under section 14502 of this title, or an alternate tonnage
measured under section 14302 of this title as prescribed by the Secretary under section 14104 of
this title)—
(1) each place appropriated to the crew of
the vessel shall have a space of at least 120
cubic feet and at least 16 square feet, measured on the floor or deck of that place, for
each seaman or apprentice lodged in the vessel;
(2) each seaman shall have a separate berth
and not more than one berth shall be placed
one above another;

Page 161

§ 11103

TITLE 46—SHIPPING

(3) the place or berth shall be securely constructed, properly lighted, drained, heated,
and ventilated, properly protected from
weather and sea, and, as far as practicable,
properly shut off and protected from the effluvium of cargo or bilge water; and
(4) crew space shall be kept free from goods
or stores that are not the personal property of
the crew occupying the place in use during the
voyage.
(b) In addition to the requirements of subsection (a) of this section, a merchant vessel of
the United States that in the ordinary course of
trade makes a voyage of more than 3 days’ duration between ports and carries a crew of at least
12 seamen shall have a hospital compartment,
suitably separated from other spaces. The compartment shall have at least one bunk for each
12 seamen constituting the crew (but not more
than 6 bunks may be required).
(c) A steam vessel of the United States operating on the Mississippi River or its tributaries
shall provide, under the direction and approval
of the Secretary, an appropriate place for the
crew that shall conform to the requirements of
this section, as far as they apply to the steam
vessel, by providing a properly heated sleeping
room in the engineroom of the steam vessel
properly protected from the cold, wind, and rain
by means of suitable awnings or screens on either side of the guards or sides and forward,
reaching from the boiler deck to the lower or
main deck.
(d) A merchant vessel of the United States,
the construction of which began after March 4,
1915, having more than 10 seamen on deck, shall
have at least one lighted, clean, and properly
heated and ventilated washing place. There shall
be provided at least one washing outfit for each
2 seamen of the watch. A separate washing place
shall be provided for the fireroom and engineroom seamen, if their number is more than 10,
that shall be large enough to accommodate at
least one-sixth of them at the same time, and
have a hot and cold water supply and a sufficient number of washbasins, sinks, and shower
baths.
(e) Forecastles shall be fumigated at intervals
provided by regulations prescribed by the Secretary of Health and Human Services, with the
approval of the Secretary, and shall have at
least 2 exits, one of which may be used in emergencies.
(f) The owner, charterer, managing operator,
agent, master, or licensed individual of a vessel
not complying with this section is liable to the
United States Government for a civil penalty of
at least $50 but not more than $500.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 577; Pub. L.
99–36, § 1(a)(6), May 15, 1985, 99 Stat. 67; Pub. L.
104–324, title VII, § 740, Oct. 19, 1996, 110 Stat.
3942.)
HISTORICAL AND REVISION NOTES
Revised section
11101 ............................................

Source section (U.S. Code)
46:660–1

Section 11101 provides mandatory standards for crew
accommodations and a penalty for noncompliance with
those standards.

AMENDMENTS
1996—Subsec. (a). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’ in introductory provisions.
1985—Subsec. (d). Pub. L. 99–36 substituted ‘‘lighted’’
for ‘‘light’’.

§ 11102. Medicine chests
(a) A vessel of the United States on a voyage
from a port in the United States to a foreign
port (except to a Canadian port), and a vessel of
the United States of at least 75 gross tons as
measured under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary under
section 14104 of this title on a voyage between a
port of the United States on the Atlantic Ocean
and Pacific Ocean, shall be provided with a medicine chest.
(b) The owner and master of a vessel not
equipped as required by subsection (a) of this
section or a regulation prescribed under subsection (a) are liable to the United States Government for a civil penalty of $500. If the offense
was due to the fault of the owner, a master penalized under this section has the right to recover the penalty and costs from the owner.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 578; Pub. L.
104–324, title VII, § 741, Oct. 19, 1996, 110 Stat.
3942.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

11102(a) ........................................
11102(b) ........................................

46:666
46:667

Section 11102 requires that a United States vessel on
a foreign or intercoastal domestic voyage be equipped
with a medicine chest, and provides a penalty for noncompliance. The Committee intends that regulation
will provide for a well stocked medicine chest adequate
for the crew of a vessel.
AMENDMENTS
1996—Subsec. (a). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘75 gross tons’’.

§ 11103. Slop chests
(a) A vessel to which section 11102 of this title
applies shall be provided with a slop chest containing sufficient clothing for the intended voyage for each seaman, including—
(1) boots or shoes;
(2) hats or caps;
(3) underclothing;
(4) outer clothing;
(5) foul weather clothing;
(6) everything necessary for the wear of a
seaman; and
(7) a complete supply of tobacco and blankets.
(b) Merchandise in the slop chest shall be sold
to a seaman desiring it, for the use of the seaman, at a profit of not more than 10 percent of
the reasonable wholesale value of the merchandise at the port at which the voyage began.

§ 11104

TITLE 46—SHIPPING

(c) This section does not apply to a vessel on
a voyage to Canada, Bermuda, the West Indies,
Mexico, or Central America, or a fishing or
whaling vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 578.)
HISTORICAL AND REVISION NOTES
Revised section
11103 ............................................

Source section (U.S. Code)
46:670
46:671

Section 11103 requires that a United States vessel on
a foreign or intercoastal domestic voyage be equipped
with a slop chest and lists the items the slop chest
must contain.

§ 11104. Destitute seamen
(a) A consular officer shall provide, for a destitute seaman of the United States, subsistence
and passage to a port of the United States in the
most reasonable manner, at the expense of the
United States Government and subject to regulations prescribed by the Secretary of State. A
seaman, if able, shall be required to perform duties on the vessel giving the seaman passage, in
accordance with the seaman’s rating.
(b) A master of a vessel of the United States
bound to a port of the United States shall take
a destitute seaman on board at the request of a
consular officer and transport the seaman to the
United States. A master refusing to transport a
destitute seaman when requested is liable to the
United States Government for a civil penalty of
$100. The certificate signed and sealed by a consular officer is prima facie evidence of refusal. A
master is not required to carry a destitute seaman if the seaman’s presence would cause the
number of individuals on board to exceed the
number permitted in the certificate of inspection or if the seaman has a contagious disease.
(c) Compensation for the transportation of
destitute seamen to the United States who are
unable to work shall be agreed on by the master
and the consular officer, under regulations prescribed by the Secretary of State. However, the
compensation may be not more than the lowest
passenger rate of the vessel, or 2 cents a mile,
whichever is less.
(d) When a master of a vessel of the United
States takes on board a destitute seaman unable
to work, from a port or place not having a consular officer, for transportation to the United
States or to a port at which there is a consular
officer, the master or owner of the vessel shall
be compensated reasonably under regulations
prescribed by the Secretary of State.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 578.)
HISTORICAL AND REVISION NOTES
Revised section
11104(a) ........................................
11104(b)–(d) ..................................

Source section (U.S. Code)
46:678
46:679

Section 11104 provides for the return to the United
States of destitute seamen of the United States at the
expense of the United States Government.

§ 11105. Wages on discharge when vessel sold
(a) When a vessel of the United States is sold
in a foreign country, the master shall deliver to

Page 162

the consular officer a certified crew list and the
agreement required by this part. The master
shall pay each seaman the wages due the seaman and provide the seaman with employment
on board another vessel of the United States
bound for the port of original engagement of the
seaman or to another port agreed on. If employment cannot be provided, the master shall—
(1) provide the seaman with the means to return to the port of original engagement;
(2) provide the seaman passage to the port of
original engagement; or
(3) deposit with the consular officer an
amount of money considered sufficient by the
officer to provide the seaman with maintenance and passage home.
(b) The consular officer shall endorse on the
agreement the particulars of the payment, provision, or deposit made under this section.
(c) An owner of a vessel is liable to the United
States Government for a civil penalty of $500 if
the master does not comply with this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 579.)
HISTORICAL AND REVISION NOTES
Revised section
11105 ............................................

Source section (U.S. Code)
46:684

Section 11105 provides that when a United States vessel is sold in a foreign port, the seamen must be provided employment on another vessel, or passage to the
port of original shipment.

§ 11106. Wages on justifiable complaint of seamen
(a) Before a seaman on a vessel of the United
States is discharged in a foreign country by a
consular officer on the seaman’s complaint that
the agreement required by this part has been
breached because the vessel is badly provisioned
or unseaworthy, or against the officers for cruel
treatment, the officer shall inquire about the
complaint. If satisfied of the justice of the complaint, the consular officer shall require the
master to pay the wages due the seaman plus
one month’s additional wages and shall discharge the seaman. The master shall provide the
seaman with employment on another vessel or
provide the seaman with passage on another vessel to the port of original engagement, to the
most convenient port of the United States, or to
some port agreeable to the seaman.
(b) When a vessel does not have sufficient provisions for the intended voyage, and the seaman
has been forced to accept a reduced ration or
provisions that are bad in quality or unfit for
use, the seaman is entitled to recover from the
master or owner an allowance, as additional
wages, that the court hearing the case considers
reasonable.
(c) Subsection (b) of this section does not
apply when the reduction in rations was for a
period during which the seaman willfully and
without sufficient cause failed to perform duties
or was lawfully under confinement on board or
on shore for misconduct, unless that reduction
can be shown to have been unreasonable.
(d) Subsection (b) of this section does not
apply to a fishing or whaling vessel or a yacht.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 579.)

Page 163

§ 11110

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised section
11106(a) ........................................
11106(b)–(d) ..................................

Source section (U.S. Code)
46:685
46:665

Section 11106 provides compensation to seamen on
United States vessels when a shipping agreement is
breached. It does not apply to fishing vessels, whaling
vessels or yachts.

§ 11107. Unlawful engagements void
An engagement of a seaman contrary to a law
of the United States is void. A seaman so engaged may leave the service of the vessel at any
time and is entitled to recover the highest rate
of wages at the port from which the seaman was
engaged or the amount agreed to be given the
seaman at the time of engagement, whichever is
higher.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 580.)
HISTORICAL AND REVISION NOTES
Revised section
11107 ............................................

Source section (U.S. Code)
46:578

Section 11107 entitles seamen engaged contrary to
any United States law to leave the service of the vessel
without loss of wages.

§ 11108. Taxes
(a) WITHHOLDING.—Wages due or accruing to a
master or seaman on a vessel in the foreign,
coastwise, intercoastal, interstate, or noncontiguous trade or an individual employed on a
fishing vessel or any fish processing vessel may
not be withheld under the tax laws of a State or
a political subdivision of a State. However, this
section does not prohibit withholding wages of a
seaman on a vessel in the coastwise trade between ports in the same State if the withholding
is under a voluntary agreement between the seaman and the employer of the seaman.
(b) LIABILITY.—
(1) LIMITATION ON JURISDICTION TO TAX.—An
individual to whom this subsection applies is
not subject to the income tax laws of a State
or political subdivision of a State, other than
the State and political subdivision in which
the individual resides, with respect to compensation for the performance of duties described in paragraph (2).
(2) APPLICATION.—This subsection applies to
an individual—
(A) engaged on a vessel to perform assigned duties in more than one State as a
pilot licensed under section 7101 of this title
or licensed or authorized under the laws of a
State; or
(B) who performs regularly assigned duties
while engaged as a master, officer, or crewman on a vessel operating on navigable waters in 2 or more States.

HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

11108 ............................................

Section 11108 prohibits the mandatory withholding of
state or local taxes from crewmembers on certain specified vessels. It permits, however, voluntary withholding agreements.
AMENDMENTS
2010—Subsec. (b)(2)(B). Pub. L. 111–281 amended subpar. (B) generally. Prior to amendment, subpar. (B)
read as follows: ‘‘who performs regularly-assigned duties while engaged as a master, officer, or crewman on
a vessel operating on the navigable waters of more than
one State.’’
2000—Pub. L. 106–489 designated existing provisions as
subsec. (a), inserted heading, and added subsec. (b).
1984—Pub. L. 98–364 substituted ‘‘an individual employed on a fishing vessel or any fish processing vessel’’
for ‘‘a fisherman employed on a fishing vessel’’.

§ 11109. Attachment of wages
(a) Wages due or accruing to a master or seaman are not subject to attachment or arrestment from any court, except for an order of a
court about the payment by a master or seaman
of any part of the master’s or seaman’s wages
for the support and maintenance of the spouse
or minor children of the master or seaman, or
both. A payment of wages to a master or seaman
is valid, notwithstanding any prior sale or assignment of wages or any attachment, encumbrance, or arrestment of the wages.
(b) An assignment or sale of wages or salvage
made before the payment of wages does not bind
the party making it, except allotments authorized by section 10315 of this title.
(c) This section applies to an individual employed on a fishing vessel or any fish processing
vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 580; Pub. L.
98–364, title IV, § 402(15), July 17, 1984, 98 Stat.
450.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

11109 ............................................

46:601

Section 11109 limits the attachment of a seaman’s
wages and establishes certain rules for the assignment
of a seaman’s wages. It also applies to fishermen on
fishing vessels.
AMENDMENTS
1984—Subsec. (c). Pub. L. 98–364 substituted ‘‘an individual employed on a fishing vessel or any fish processing vessel’’ for ‘‘a fisherman on a fishing vessel’’.

§ 11110. Seamen’s clothing
The clothing of a seaman is exempt from attachments and liens. A person detaining a seaman’s clothing shall be fined not more than $500,
imprisoned for not more than 6 months, or both.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 580.)
HISTORICAL AND REVISION NOTES
Revised section

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 580; Pub. L.
98–364, title IV, § 402(14), July 17, 1984, 98 Stat.
450; Pub. L. 106–489, § 1, Nov. 9, 2000, 114 Stat.
2207; Pub. L. 111–281, title IX, § 906, Oct. 15, 2010,
124 Stat. 3012.)

46:601

11110 ............................................

Source section (U.S. Code)
46:563

Section 11110 exempts seamen’s clothing from attachments and liens. It also provides a penalty for violations.

§ 11111

TITLE 46—SHIPPING

§ 11111. Limit on amount recoverable on voyage
When a seaman is on a voyage on which a
written agreement is required under this part,
not more than $1 is recoverable from the seaman
by a person for a debt incurred by the seaman
during the voyage for which the seaman is
signed on until the voyage is ended.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 581.)

Page 164

after the date of the enactment of this chapter, benefits may be provided under chapter 24
of title 38 by reason of this chapter (regardless
of the date of death), and in such a case benefits may be provided under section 2306 of such
title.
(Added Pub. L. 105–368, title IV, § 402(a), Nov. 11,
1998, 112 Stat. 3336.)
REFERENCES IN TEXT

HISTORICAL AND REVISION NOTES
Revised section
11111 ............................................

Source section (U.S. Code)

The date of the enactment of this chapter, referred to
in subsec. (c), is the date of enactment of Pub. L.
105–368, which was approved Nov. 11, 1998.

46:602

§ 11202. Qualified service
Section 11111 limits the amount of money recoverable
from a seaman for a debt incurred while on a voyage on
which a shipping agreement is required.

§ 11112. Master’s lien for wages
The master of a documented vessel has the
same lien against the vessel for the master’s
wages and the same priority as any other seaman serving on the vessel.
(Added Pub. L. 99–307, § 1(19)(B), May 19, 1986, 100
Stat. 446.)
CHAPTER 112—MERCHANT MARINER
BENEFITS
Sec.

11201.
11202.
11203.
11204.

Eligibility for veterans’ burial and cemetery
benefits.
Qualified service.
Documentation of qualified service.
Processing fees.

§ 11201. Eligibility for veterans’ burial and cemetery benefits
(a) ELIGIBILITY.—
(1) IN GENERAL.—The qualified service of a
person referred to in paragraph (2) shall be
considered to be active duty in the Armed
Forces during a period of war for purposes of
eligibility for benefits under the following provisions of title 38:
(A) Chapter 23 (relating to burial benefits).
(B) Chapter 24 (relating to interment in
national cemeteries).
(2) COVERED INDIVIDUALS.—Paragraph (1) applies to a person who—
(A) receives an honorable service certificate under section 11203 of this title; and
(B) is not eligible under any other provision of law for benefits under laws administered by the Secretary of Veterans Affairs.
(b) REIMBURSEMENT FOR BENEFITS PROVIDED.—
The Secretary shall reimburse the Secretary of
Veterans Affairs for the value of benefits that
the Secretary of Veterans Affairs provides for a
person by reason of eligibility under this section.
(c) APPLICABILITY.—
(1) GENERAL RULE.—Benefits may be provided under the provisions of law referred to in
subsection (a)(1) by reason of this chapter only
for deaths occurring after the date of the enactment of this chapter.
(2) BURIALS, ETC. IN NATIONAL CEMETERIES.—
Notwithstanding paragraph (1), in the case of
an initial burial or columbarium placement

For purposes of this chapter, a person shall be
considered to have engaged in qualified service
if, between August 16, 1945, and December 31,
1946, the person—
(1) was a member of the United States merchant marine (including the Army Transport
Service and the Naval Transport Service) serving as a crewmember of a vessel that was—
(A) operated by the War Shipping Administration or the Office of Defense Transportation (or an agent of the Administration or
Office);
(B) operated in waters other than inland
waters, the Great Lakes, and other lakes,
bays, and harbors of the United States;
(C) under contract or charter to, or property of, the Government of the United
States; and
(D) serving the Armed Forces; and
(2) while so serving, was licensed or otherwise documented for service as a crewmember
of such a vessel by an officer or employee of
the United States authorized to license or document the person for such service.
(Added Pub. L. 105–368, title IV, § 402(a), Nov. 11,
1998, 112 Stat. 3336.)
§ 11203. Documentation of qualified service
(a) RECORD OF SERVICE.—The Secretary, or in
the case of personnel of the Army Transport
Service or the Naval Transport Service, the Secretary of Defense, shall, upon application—
(1) issue a certificate of honorable service to
a person who, as determined by that Secretary, engaged in qualified service of a nature
and duration that warrants issuance of the
certificate; and
(2) correct, or request the appropriate official of the Federal Government to correct, the
service records of that person to the extent
necessary to reflect the qualified service and
the issuance of the certificate of honorable
service.
(b) TIMING OF DOCUMENTATION.—A Secretary
receiving an application under subsection (a)
shall act on the application not later than 1 year
after the date of that receipt.
(c) STANDARDS RELATING TO SERVICE.—In making a determination under subsection (a)(1), the
Secretary acting on the application shall apply
the same standards relating to the nature and
duration of service that apply to the issuance of
honorable discharges under section 401(a)(1)(B)
of the GI Bill Improvement Act of 1977 (38 U.S.C.
106 note).

Page 165

§ 11301

TITLE 46—SHIPPING

(d) CORRECTION OF RECORDS.—An official who
is requested under subsection (a)(2) to correct
the service records of a person shall make such
correction.
(Added Pub. L. 105–368, title IV, § 402(a), Nov. 11,
1998, 112 Stat. 3337.)
REFERENCES IN TEXT
Section 401(a)(1)(B) of the GI Bill Improvement Act of
1977, referred to in subsec. (c), is section 401(a)(1)(B) of
Pub. L. 95–202, which is set out as a note under section
106 of Title 38, Veterans’ Benefits.

§ 11204. Processing fees
(a) COLLECTION OF FEES.—The Secretary, or in
the case of personnel of the Army Transport
Service or the Naval Transport Service, the Secretary of Defense, shall collect a fee of $30 from
each applicant for processing an application submitted under section 11203(a) of this title.
(b) TREATMENT OF FEES COLLECTED.—Amounts
received by the Secretary under this section
shall be deposited in the General Fund of the
Treasury as offsetting receipts of the department in which the Coast Guard is operating and
ascribed to Coast Guard activities. Amounts received by the Secretary of Defense under this
section shall be deposited in the General Fund of
the Treasury as offsetting receipts of the Department of Defense. In either case, such
amounts shall be available, subject to appropriation, for the administrative costs of processing
applications under section 11203 of this title.
(Added Pub. L. 105–368, title IV, § 402(a), Nov. 11,
1998, 112 Stat. 3337.)
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

CHAPTER 113—OFFICIAL LOGBOOKS

(b) The master of the vessel shall make or
have made in the official logbook the following
entries:
(1) each legal conviction of a seaman of the
vessel and the punishment inflicted.
(2) each offense committed by a seaman of
the vessel for which it is intended to prosecute
or to enforce under a forfeiture, together with
statements about reading the entry and the
reply made to the charge as required by section 11502 of this title.
(3) each offense for which punishment is inflicted on board and the punishment inflicted.
(4) a statement of the conduct, character,
and qualifications of each seaman of the vessel
or a statement that the master declines to
give an opinion about that conduct, character,
and qualifications.
(5) each illness of or injury to a seaman of
the vessel, the nature of the illness or injury,
and the medical treatment.
(6) each death on board, with the cause of
death, and if a seaman, the information required by section 10702 of this title.
(7) each birth on board, with the sex of the
infant and name of the parents.
(8) each marriage on board, with the names
and ages of the parties.
(9) the name of each seaman who ceases to
be a crewmember (except by death), with the
place, time, manner, and the cause why the
seaman ceased to be a crewmember.
(10) the wages due to a seaman who dies during the voyage and the gross amount of all deductions to be made from the wages.
(11) the sale of the property of a seaman who
dies during the voyage, including a statement
of each article sold and the amount received
for the property.
(12) when a marine casualty occurs, a statement about the casualty and the circumstances under which it occurred, made immediately after the casualty when practicable to
do so.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 581; Pub. L.
98–557, § 30, Oct. 30, 1984, 98 Stat. 2875; Pub. L.
104–324, title VII, § 742, Oct. 19, 1996, 110 Stat.
3942.)

Sec.

11301.
11302.
11303.
11304.

Logbook and entry requirements.
Manner of making entries.
Penalties.
Additional logbook and entry requirements.
AMENDMENTS

2010—Pub. L. 111–281, title VI, § 607(b), Oct. 15, 2010, 124
Stat. 2967, added item 11304.

§ 11301. Logbook and entry requirements
(a) Except a vessel on a voyage from a port in
the United States to a port in Canada, a vessel
of the United States shall have an official logbook if the vessel is—
(1) on a voyage from a port in the United
States to a foreign port; or
(2) of at least 100 gross tons as measured
under section 14502 of this title, or an alternate tonnage measured under section 14302 of
this title as prescribed by the Secretary under
section 14104 of this title and is on a voyage
between a port of the United States on the Atlantic Ocean and on the Pacific Ocean.

HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

11301 ............................................

46:201

Section 11301 requires United States vessels on certain types of voyages to have an official logbook and
lists the types of entries that must be made in the logbook.
AMENDMENTS
1996—Subsec. (a)(2). Pub. L. 104–324 inserted ‘‘as measured under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title’’ after ‘‘100 gross tons’’.
1984—Subsec. (a). Pub. L. 98–557 amended subsec. (a)
generally, which prior to amendment read as follows:
‘‘A vessel of the United States on a voyage between a
port in the United States and a port in a foreign country, and a vessel of the United States of at least 75
gross tons on a voyage between a port of the United
States on the Atlantic Ocean and a port of the United
States on the Pacific Ocean, shall have an official logbook.’’

§ 11302

TITLE 46—SHIPPING

§ 11302. Manner of making entries
Each entry made in the official logbook—
(1) shall be made as soon as possible after
the occurrence;
(2) if not made on the day of the occurrence,
shall be dated and state the date of the occurrence;
(3) if the entry is about an occurrence happening before the vessel’s arrival at the final
port of discharge, shall be made not later than
24 hours after the arrival;
(4) shall be signed by the master; and
(5) shall be signed by the chief mate or another seaman.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 581.)
HISTORICAL AND REVISION NOTES
Revised section
11302 ............................................

Source section (U.S. Code)
46:202

Section 11302 describes the manner in which entries
shall be made in the logbook, specifying when they
shall be made, who shall sign them, and requiring that
they shall be dated.

§ 11303. Penalties
(a) A master failing to maintain an official
logbook as required by this part is liable to the
United States Government for a civil penalty of
$200.
(b) A master failing to make an entry in the
vessel’s official logbook as required by this part
is liable to the Government for a civil penalty of
$200.
(c) A person is liable to the Government for a
civil penalty of $150 when the person makes, procures to be made, or assists in making, an entry
in the vessel’s official logbook—
(1) later than 24 hours after the vessel’s arrival at the final port of discharge; and
(2) that is about an occurrence that happened before that arrival.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 582.)
HISTORICAL AND REVISION NOTES
Revised section
11303 ............................................

Source section (U.S. Code)
46:203

Section 11303 provides a penalty for violation of the
provisions about logbooks in this part.

§ 11304. Additional logbook and entry requirements
(a) A vessel of the United States that is subject to inspection under section 3301 of this title,
except a vessel on a voyage from a port in the
United States to a port in Canada, shall have an
official logbook, which shall be kept available
for review by the Secretary on request.
(b) The log book required by subsection (a)
shall include the following entries:
(1) The time when each seaman and each officer assumed or relieved the watch.
(2) The number of hours in service to the
vessels of each seaman and each officer.
(3) An account of each accident, illness, and
injury that occurs during each watch.
(Added Pub. L. 111–281, title VI, § 607(a), Oct. 15,
2010, 124 Stat. 2967.)

Page 166

CHAPTER 115—OFFENSES AND PENALTIES
Sec.

11501.
11502.
11503.
11504.
11505.
11506.
11507.

Penalties for specified offenses.
Entry of offenses in logbook.
Duties of consular officers related to insubordination.
Enforcement of forfeitures.
Disposal of forfeitures.
Carrying sheath knives.
Surrender of offending officers.

§ 11501. Penalties for specified offenses
When a seaman lawfully engaged commits any
of the following offenses, the seaman shall be
punished as specified:
(1) For desertion, the seaman forfeits any
part of the money or property the seaman
leaves on board and any part of earned wages.
(2) For neglecting or refusing without reasonable cause to join the seaman’s vessel or to
proceed to sea in the vessel, for absence without leave within 24 hours of the vessel’s sailing
from a port (at the beginning or during the
voyage), or for absence without leave from duties and without sufficient reason, the seaman
forfeits from the seaman’s wages not more
than 2 days’ pay or a sufficient amount to defray expenses incurred in hiring a substitute.
(3) For quitting the vessel without leave
after the vessel’s arrival at the port of delivery and before the vessel is placed in security,
the seaman forfeits from the seaman’s wages
not more than one month’s pay.
(4) For willful disobedience to a lawful command at sea, the seaman, at the discretion of
the master, may be confined until the disobedience ends, and on arrival in port forfeits
from the seaman’s wages not more than 4
days’ pay or, at the discretion of the court,
may be imprisoned for not more than one
month.
(5) For continued willful disobedience to
lawful command or continued willful neglect
of duty at sea, the seaman, at the discretion of
the master, may be confined, on water and
1,000 calories, with full rations every 5th day,
until the disobedience ends, and on arrival in
port forfeits, for each 24 hours’ continuance of
the disobedience or neglect, not more than 12
days’ pay or, at the discretion of the court,
may be imprisoned for not more than 3
months.
(6) For assaulting a master, mate, pilot, engineer, or staff officer, the seaman shall be imprisoned for not more than 2 years.
(7) For willfully damaging the vessel, or embezzling or willfully damaging any of the
stores or cargo, the seaman forfeits from the
seaman’s wages the amount of the loss sustained and, at the discretion of the court, may
be imprisoned for not more than 12 months.
(8) For smuggling for which a seaman is convicted causing loss or damage to the owner or
master, the seaman is liable to the owner or
master for the loss or damage, and any part of
the seaman’s wages may be retained to satisfy
the liability. The seaman also may be imprisoned for not more than 12 months.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 582.)

Page 167

§ 11506

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised section
11501 ............................................

Source section (U.S. Code)
46:701

Section 11501 provides penalties for specific offenses
committed by seamen.

§ 11502. Entry of offenses in logbook
(a) When an offense listed in section 11501 of
this title is committed, an entry shall be made
in the vessel’s official logbook—
(1) on the day of the offense;
(2) stating the details;
(3) signed by the master; and
(4) signed by the chief mate or another seaman.
(b) Before arrival in port if the offense was
committed at sea, or before departure if the offense was committed in port and the offender is
still on the vessel—
(1) the entry shall be read to the offender;
(2) the offender shall be given a copy; and
(3) the offender shall be given the opportunity to reply.
(c) After subsection (b) of this section has been
complied with, an entry shall be made in the official logbook—
(1) stating that the entry about the offense
was read and a copy provided to the offender;
(2) stating the offender’s reply;
(3) signed by the master; and
(4) signed by the chief mate or another seaman.
(d) In a subsequent legal proceeding, if the entries required by this section are not produced
or proved, the court may refuse to receive evidence of the offense.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 583.)
HISTORICAL AND REVISION NOTES
Revised section
11502 ............................................

Source section (U.S. Code)
46:702

Section 11502 describes the manner in which offenses
must be recorded in the official logbook, and the use of
the records by the court.

§ 11503. Duties of consular officers related to insubordination
(a) A consular officer shall use every means to
discountenance insubordination on vessels of
the United States, including employing the aid
of local authorities.
(b) When a seaman is accused of insubordination, a consular officer shall inquire into the
facts and proceed as provided in section 11106 of
this title. If the consular officer discharges the
seaman, the officer shall endorse the agreement
required by this part and enter in the vessel’s official logbook the cause and particulars of the
discharge.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 583.)

§ 11504. Enforcement of forfeitures
When an offense by a seaman also is a criminal violation, it is not necessary that a criminal
proceeding be brought to enforce a forfeiture.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 584.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

11504 ............................................

46:705

Section 11504 provides that when a seaman has committed a criminal offense, a forfeiture may be enforced
through civil proceedings.

§ 11505. Disposal of forfeitures
(a) Money, property, and wages forfeited under
this chapter for desertion may be applied to
compensate the owner or master of the vessel
for expenses caused by the desertion. The balance shall be transferred to the appropriate district court of the United States when the voyage
is completed.
(b) If it appears to the district court that the
forfeiture was imposed properly, the property
transferred may be sold in the same manner prescribed for the disposition of the property of deceased seamen. The court shall deposit in the
Treasury as miscellaneous receipts the proceeds
of the sale and any money and wages transferred
to the court.
(c) When an owner or master fails to transfer
the balance as required under subsection (a) of
this section, the owner or master is liable to the
United States Government for a civil penalty of
2 times the amount of the balance, recoverable
by the Secretary in the same manner that seaman’s wages are recovered.
(d) In all other cases of forfeiture of wages, the
forfeiture shall be for the benefit of the owner of
the vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 584; Pub. L.
103–206, title IV, § 421, Dec. 20, 1993, 107 Stat.
2438.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

11505 ............................................

46:706

Section 11505 provides for the disposal of wages forfeited by deserting seamen.
AMENDMENTS
1993—Subsec. (a). Pub. L. 103–206, § 421(1), substituted
‘‘The balance shall be transferred to the appropriate
district court of the United States when the voyage is
completed.’’ for ‘‘The balance shall be transferred to
the Secretary when the voyage is completed, as prescribed by the Secretary.’’
Subsec. (b). Pub. L. 103–206, § 421(2), struck out at beginning ‘‘Within one month of receiving the balance
under subsection (a) of this section, the Secretary shall
transfer the balance to the appropriate district court of
the United States.’’

HISTORICAL AND REVISION NOTES

§ 11506. Carrying sheath knives
Revised section
11503 ............................................

Source section (U.S. Code)
46:703

Section 11503 delegates to consular officers certain
responsibilities related to insubordination of seamen
on United States vessels.

A seaman in the merchant marine may not
wear a sheath knife on board a vessel without
the consent of the master. The master of a vessel of the United States shall inform each seaman of this prohibition before engagement. A

§ 11507

TITLE 46—SHIPPING

master failing to advise a seaman is liable to the
United States Government for a civil penalty of
$50.

Sec.

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 584.)

12134.
12135.
12136.
12137.

HISTORICAL AND REVISION NOTES
Revised section
11506 ............................................

Source section (U.S. Code)
46:710

Section 11506 prohibits a merchant seaman from carrying a sheath knife without permission of the master,
and penalizes a master who does not advise a seaman of
this provision.

§ 11507. Surrender of offending officers
When an officer of a vessel of the United
States (except the master) has violated section
2191 of title 18, and the master has actual knowledge of the offense or if complaint is made within 3 days after reaching port, the master shall
surrender the offending officer to the proper authorities. If the master fails to use diligence to
comply with this section and the offender escapes, the owner, the master, and the vessel are
liable for damages to the individual unlawfully
punished.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 584.)
HISTORICAL AND REVISION NOTES
Revised section
11507 ............................................

Source section (U.S. Code)
46:712

Section 11507 requires a master of a vessel of the
United States to surrender to the proper authorities
any officer who has violated section 2191 of title 18
(which provides a penalty for cruelty to seamen by officers), and penalizes the master for noncompliance.

PART H—IDENTIFICATION OF VESSELS
CHAPTER 121—DOCUMENTATION OF
VESSELS
SUBCHAPTER I—GENERAL
Sec.

12101.
12102.
12103.
12104.
12105.
12106.
12107.

Definitions.
Vessels requiring documentation.
General eligibility requirements.
Applications for documentation.
Issuance of documentation.
Surrender of title and number.
Wrecked vessels.

SUBCHAPTER II—ENDORSEMENTS AND SPECIAL
DOCUMENTATION
12111.
12112.
12113.
12114.
12115.
12116.
12117.
12118.
12119.
12120.
12121.

Registry endorsement.
Coastwise endorsement.
Fishery endorsement.
Recreational endorsement.
Temporary endorsement for vessels procured
outside the United States.
Limited endorsements for Guam, American
Samoa, and Northern Mariana Islands.
Oil spill response vessels.
Owners engaged primarily in manufacturing
or mineral industry.
Owners engaged primarily in leasing or financing transactions.
Liquified gas tankers.
Small passenger vessels and uninspected passenger vessels.
SUBCHAPTER III—MISCELLANEOUS

12131.

Command of documented vessels.

12132.
12133.

12138.
12139.

Page 168

Loss of coastwise trade privileges.
Duty to carry certificate on vessel and allow
examination.
Evidentiary uses of documentation.
Invalidation of certificates of documentation.
Surrender of certificates of documentation.
Recording of vessels built in the United
States.
List of documented vessels.
Reports.
SUBCHAPTER IV—PENALTIES

12151.
12152.

Penalties.
Denial or revocation of endorsement for nonpayment of civil penalty.
CODIFICATION

This chapter was originally enacted by Pub. L. 98–89,
Aug. 26, 1983, 97 Stat. 584, and amended by Pub. L.
98–364, July 17, 1984, 98 Stat. 440; Pub. L. 98–454, Oct. 5,
1984, 98 Stat. 1732; Pub. L. 99–36, May 15, 1985, 99 Stat.
67; Pub. L. 99–307, May 19, 1986, 100 Stat. 444; Pub. L.
99–509, Oct. 21, 1986, 100 Stat. 1874; Pub. L. 99–570, Oct.
27, 1986, 100 Stat. 3207; Pub. L. 100–239, Jan. 11, 1988, 101
Stat. 1778; Pub. L. 100–710, Nov. 23, 1988, 102 Stat. 4735;
Pub. L. 101–225, Dec. 12, 1989, 103 Stat. 1908; Pub. L.
101–380, Aug. 18, 1990, 104 Stat. 484; Pub. L. 101–595, Nov.
16, 1990, 104 Stat. 2979; Pub. L. 102–388, Oct. 6, 1992, 106
Stat. 1520; Pub. L. 102–587, Nov. 4, 1992, 106 Stat. 5039;
Pub. L. 104–208, Sept. 30, 1996, 110 Stat. 3009; Pub. L.
104–324, Oct. 19, 1996, 110 Stat. 3901; Pub. L. 105–277, Oct.
21, 1998, 112 Stat. 2681; Pub. L. 105–383, Nov. 13, 1998, 112
Stat. 3411; Pub. L. 106–31, May 21, 1999, 113 Stat. 57; Pub.
L. 107–20, July 24, 2001, 115 Stat. 155; Pub. L. 107–206,
Aug. 2, 2002, 116 Stat. 820; Pub. L. 107–295, Nov. 25, 2002,
116 Stat. 2064; Pub. L. 108–136, Nov. 24, 2003, 117 Stat.
1392; Pub. L. 108–293, Aug. 9, 2004, 118 Stat. 1028; Pub. L.
109–241, July 11, 2006, 120 Stat. 516. This chapter is
shown here, however, as having been enacted by Pub. L.
109–304, § 5, Oct. 6, 2006, 120 Stat. 1491, without reference
to those intervening amendments because of the general amendment of this chapter by Pub. L. 109–304.

SUBCHAPTER I—GENERAL
§ 12101. Definitions
(a) REBUILT IN THE UNITED STATES.—In this
chapter, a vessel is deemed to have been rebuilt
in the United States only if the entire rebuilding, including the construction of any major
component of the hull or superstructure, was
done in the United States.
(b) RELATED TERMS IN OTHER LAWS.—When the
following terms are used in a law, regulation,
document, ruling, or other official act referring
to the documentation of a vessel, the following
definitions apply:
(1) REGISTRY ENDORSEMENT.—The terms
‘‘certificate of registry’’, ‘‘register’’, and ‘‘registry’’ mean a certificate of documentation
with a registry endorsement issued under this
chapter.
(2) COASTWISE ENDORSEMENT.—The terms ‘‘license’’, ‘‘enrollment and license’’, ‘‘license for
the coastwise (or coasting) trade’’, and ‘‘enrollment and license for the coastwise (or
coasting) trade’’ mean a certificate of documentation with a coastwise endorsement issued under this chapter.
(3) YACHT.—The term ‘‘yacht’’ means a recreational vessel even if not documented.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1491.)

Page 169
HISTORICAL AND REVISION NOTES
Revised
Section
12101(a) ......

12101(b) ......

§ 12103

TITLE 46—SHIPPING

Source (U.S. Code)
46:12101(a)(2).
46 App.:883 (2d proviso related to
meaning of ‘‘rebuilt’’).

Source (Statutes at Large)

HISTORICAL AND REVISION NOTES
Revised
Section
12102(a) ......

June 5, 1920, ch. 250, § 27 (2d
proviso related to meaning of ‘‘rebuilt’’), 41 Stat.
999; July 2, 1935, ch. 355, 49
Stat. 442; July 14, 1956, ch.
600, § 1, 70 Stat. 544; Pub.
L. 86–583, § 1, July 5, 1960,
74 Stat. 321; Pub. L.
100–239, § 6(c)(1), Jan. 11,
1988, 101 Stat. 1782.

46:12101(b).

In subsection (a), the words ‘‘its territories’’ and ‘‘or
its possessions’’ are omitted because of the definition of
‘‘United States’’ in chapter 1 of the revised title. The
words ‘‘(not including trust territories)’’ are omitted
because the Trust Territory of the Pacific Islands has
terminated. See 48 U.S.C. 1681 note prec.
PRIOR PROVISIONS
A prior section 12101, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 585; Pub. L. 98–364, title IV, § 402(16), July 17, 1984,
98 Stat. 450; Pub. L. 99–36, § 1(a)(7)(B), May 15, 1985, 99
Stat. 67; Pub. L. 100–239, § 3(2), (3), Jan. 11, 1988, 101 Stat.
1778; Pub. L. 101–225, title III, § 301(a)(1), Dec. 12, 1989,
103 Stat. 1920; Pub. L. 104–324, title XI, § 1115(b)(2), Oct.
19, 1996, 110 Stat. 3972, originally derived from section
65w of former Title 46, Shipping, related to definitions
and related terms in other laws, prior to the general
amendment of this chapter by Pub. L. 109–304. See this
section and section 108 of this title.

§ 12102. Vessels requiring documentation
(a) IN GENERAL.—Except as otherwise provided, a vessel may engage in a trade only if the
vessel has been issued a certificate of documentation with an endorsement for that trade
under this chapter.
(b) VESSELS LESS THAN 5 NET TONS.—A vessel
of less than 5 net tons may engage in a trade
without being documented if the vessel otherwise satisfies the requirements to engage in the
particular trade.
(c) BARGES.—A barge qualified to engage in
the coastwise trade may engage in the coastwise
trade, without being documented, on rivers, harbors, lakes (except the Great Lakes), canals, and
inland waters.
(d) AQUACULTURE WAIVER.—
(1) PERMITTING OF NONQUALIFIED VESSELS TO
PERFORM CERTAIN AQUACULTURE SUPPORT OPERATIONS.—Notwithstanding section 12113 and
any other law, the Secretary of Transportation may issue a waiver allowing a documented vessel with a registry endorsement or
a foreign flag vessel to be used in operations
that treat aquaculture fish for or protect
aquaculture fish from disease, parasitic infestation, or other threats to their health if the
Secretary finds, after publishing a notice in
the Federal Register, that a suitable vessel of
the United States is not available that could
perform those services.
(2) PROHIBITION.—Vessels operating under a
waiver issued under this subsection may not
engage in any coastwise transportation.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1492;
Pub. L. 111–281, title IX, § 901(c)(1), Oct. 15, 2010,
124 Stat. 3008.)

12102(b) ......
12102(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12106(b).
46:12108(b).
46:12110(a).
46:12102(a) (related
to tonnage).
46:12110(b).

PRIOR PROVISIONS
A prior section 12102, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 585; Pub. L. 99–509, title V, § 5102(b)(6), Oct. 21,
1986, 100 Stat. 1927; Pub. L. 100–239, § 7(a), Jan. 11, 1988,
101 Stat. 1782; Pub. L. 100–710, title I, § 104(a)(4), (5), Nov.
23, 1988, 102 Stat. 4750; Pub. L. 101–225, title III,
§ 301(a)(2), Dec. 12, 1989, 103 Stat. 1920; Pub. L. 104–324,
title XI, § 1136(a), Oct. 19, 1996, 110 Stat. 3986; Pub. L.
105–277, div. C, title II, § 202(a), Oct. 21, 1998, 112 Stat.
2681–617; Pub. L. 105–383, title IV, §§ 401(a)(1), 421, Nov.
13, 1998, 112 Stat. 3424, 3439; Pub. L. 107–20, title II,
§ 2202(a), July 24, 2001, 115 Stat. 168; Pub. L. 107–206, title
I, § 1103, Aug. 2, 2002, 116 Stat. 884; Pub. L. 108–136, div.
C, title XXXV, § 3534(b)(1), Nov. 24, 2003, 117 Stat. 1818,
originally derived from section 65b of former Title 46,
Shipping, related to vessels eligible for documentation,
prior to the general amendment of this chapter by Pub.
L. 109–304. See this section and sections 12103, 12111, and
12113 of this title.
AMENDMENTS
2010—Subsec. (d). Pub. L. 111–281 added subsec. (d).
REGULATIONS
Pub. L. 111–281, title IX, § 901(c)(2), Oct. 15, 2010, 124
Stat. 3008, provided that: ‘‘The Secretary of the department in which the Coast Guard is operating shall, in
accordance with section 553 of title 5, United States
Code, and after public notice and comment, promulgate
regulations necessary and appropriate to implement
this subsection [amending this section]. The Secretary
may grant interim permits pending the issuance of
such regulations upon receipt of applications containing the required information.’’

§ 12103. General eligibility requirements
(a) IN GENERAL.—Except as otherwise provided, a certificate of documentation for a vessel may be issued under this chapter only if the
vessel is—
(1) wholly owned by one or more individuals
or entities described in subsection (b);
(2) at least 5 net tons as measured under part
J of this subtitle; and
(3) not documented under the laws of a foreign country.
(b) ELIGIBLE OWNERS.—For purposes of subsection (a)(1), the following are eligible owners:
(1) An individual who is a citizen of the
United States.
(2) An association, trust, joint venture, or
other entity if—
(A) each of its members is a citizen of the
United States; and
(B) it is capable of holding title to a vessel
under the laws of the United States or a
State.
(3) A partnership if—
(A) each general partner is a citizen of the
United States; and
(B) the controlling interest in the partnership is owned by citizens of the United
States.
(4) A corporation if—

§ 12104

TITLE 46—SHIPPING

(A) it is incorporated under the laws of the
United States or a State;
(B) its chief executive officer, by whatever
title, and the chairman of its board of directors are citizens of the United States; and
(C) no more of its directors are noncitizens
than a minority of the number necessary to
constitute a quorum.
(5) The United States Government.
(6) The government of a State.
(c) TEMPORARY CERTIFICATES PRIOR TO
UREMENT.—Notwithstanding subsection

MEAS(a)(2),
the Secretary may issue a temporary certificate
of documentation for a vessel before it is measured.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1492.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12103(a) ......

46:12102(a) (less
ownership), (b)
(1st sentence).
46:12102(a) (related
to ownership)
46:12102(b) (last sentence).

12103(b) ......
12103(c) ......

Source (Statutes at Large)

PRIOR PROVISIONS
A prior section 12103, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 585; Pub. L. 100–710, title I, § 104(a)(4), (6), Nov. 23,
1988, 102 Stat. 4750; Pub. L. 101–225, title III, § 301(a)(3),
Dec. 12, 1989, 103 Stat. 1920; Pub. L. 102–388, title III,
§ 348(c)(1), Oct. 6, 1992, 106 Stat. 1554; Pub. L. 102–587,
title V, § 5213(a)(1), Nov. 4, 1992, 106 Stat. 5077; Pub. L.
107–295, title IV, § 422(a), Nov. 25, 2002, 116 Stat. 2125,
originally derived from section 65e of former Title 46,
Shipping, related to certificates of documentation,
prior to the general amendment of this chapter by Pub.
L. 109–304. See sections 12104, 12105, and 12133 of this
title.
A prior section 12103a, added Pub. L. 107–295, title IV,
§ 422(b)(1), Nov. 25, 2002, 116 Stat. 2125, related to issuance of temporary certificate of documentation by
third parties, prior to the general amendment of this
chapter by Pub. L. 109–304. See section 12105 of this
title.

§ 12104. Applications for documentation
(a) IN GENERAL.—An application for a certificate of documentation or endorsement under
this chapter must be filed by the owner of the
vessel. The application must be filed in the manner, be in the form, and contain the information
prescribed by the Secretary.
(b) APPLICANT’S IDENTIFYING INFORMATION.—
The Secretary shall require the applicant to provide—
(1) if the applicant is an individual, the individual’s social security number; or
(2) if the applicant is an entity—
(A) the entity’s taxpayer identification
number; or
(B) if the entity does not have a taxpayer
identification number, the social security
number of an individual who is a corporate
officer, general partner, or individual trustee of the entity and who signs the application.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1493.)

Page 170
HISTORICAL AND REVISION NOTES

Revised
Section
12104(a) ......
12104(b) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12103(a) (related
to filing by
owner), (b)(1).
46:12103(b)(2).

PRIOR PROVISIONS
A prior section 12104, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 586; Pub. L. 99–36, § 1(a)(7)(B), May 15, 1985, 99 Stat.
67; Pub. L. 101–225, title III, § 301(a)(4), Dec. 12, 1989, 103
Stat. 1920, originally derived from section 65g of former
Title 46, Shipping, related to effect of documentation,
prior to the general amendment of this chapter by Pub.
L. 109–304. See section 12134 of this title.

§ 12105. Issuance of documentation
(a) IN GENERAL.—Except as provided in section
12152 of this title, the Secretary, on receipt of a
proper application, shall issue a certificate of
documentation or a temporary certificate of
documentation for a vessel satisfying the requirements of section 12103 of this title. The certificate shall contain each endorsement under
subchapter II of this chapter for which the
owner applies and the vessel is eligible.
(b) TEMPORARY CERTIFICATES FOR RECREATIONAL VESSELS.—The Secretary may delegate, subject to the supervision and control of
the Secretary and under terms prescribed by
regulation, to private entities determined and
certified by the Secretary to be qualified, the
authority to issue a temporary certificate of
documentation for a recreational vessel eligible
under section 12103 of this title. A temporary
certificate issued under this subsection is valid
for not more than 30 days.
(c) INFORMATION TO BE INCLUDED IN CERTIFICATE.—A certificate of documentation shall—
(1) identify and describe the vessel;
(2) identify the owner of the vessel; and
(3) contain additional information prescribed
by the Secretary.
(d) PROCEDURES TO ENSURE INTEGRITY AND ACCURACY.—The Secretary shall prescribe procedures to ensure the integrity of, and the accuracy of information contained in, certificates of
documentation.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1493.)
HISTORICAL AND REVISION NOTES
Revised
Section
12105(a) ......
12105(b) ......
12105(c) ......
12105(d) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12103(a) (less filing by owner).
46:12103a.
46:12103(c).
46:12103(d).

In subsection (b), the words ‘‘eligible under’’ are substituted for ‘‘if the applicant for the certificate of documentation meets the requirements set out in’’ for consistency in the chapter and to eliminate unnecessary
words.
PRIOR PROVISIONS
A prior section 12105, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 586; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750; Pub. L. 101–225, title III, § 301(a)(5), Dec.
12, 1989, 103 Stat. 1920; Pub. L. 109–241, title III, § 310,
July 11, 2006, 120 Stat. 529, originally derived from section 65h of former Title 46, Shipping, related to registry

Page 171

endorsements, prior to the general amendment of this
chapter by Pub. L. 109–304. See section 12111 of this
title.

§ 12106. Surrender of title and number
(a) IN GENERAL.—A documented vessel may
not be titled by a State or required to display
numbers under chapter 123 of this title, and any
certificate of title issued by a State for a documented vessel shall be surrendered as provided
by regulations prescribed by the Secretary.
(b) VESSELS COVERED BY PREFERRED MORTGAGE.—The Secretary may approve the surrender under subsection (a) of a certificate of title
for a vessel covered by a preferred mortgage
under section 31322(d) of this title only if the
mortgagee consents.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1494.)
HISTORICAL AND REVISION NOTES
Revised
Section
12106 ..........

§ 12111

TITLE 46—SHIPPING

Source (U.S. Code)

Source (Statutes at Large)

46:12124.

PRIOR PROVISIONS
A prior section 12106, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 586; Pub. L. 98–454, title III, § 301(b), Oct. 5, 1984, 98
Stat. 1734; Pub. L. 100–239, § 6(a)(2), (3), Jan. 11, 1988, 101
Stat. 1781; Pub. L. 101–225, title III, § 301(a)(6), Dec. 12,
1989, 103 Stat. 1921; Pub. L. 101–380, title IV, § 4205, Aug.
18, 1990, 104 Stat. 533; Pub. L. 104–324, title VII, § 743,
title XI, § 1113(d), Oct. 19, 1996, 110 Stat. 3942, 3971; Pub.
L. 108–293, title VI, § 608(a), Aug. 9, 2004, 118 Stat. 1054,
originally derived from section 65i of former Title 46,
Shipping, related to coastwise endorsements, prior to
the general amendment of this chapter by Pub. L.
109–304. See sections 12102, 12112, 12116, 12117, and 12119
of this title.

§ 12107. Wrecked vessels
(a) REQUIREMENTS.—A vessel is a wrecked vessel under this chapter if it—
(1) was wrecked on a coast of the United
States or adjacent waters; and
(2) has undergone repairs in a shipyard in
the United States equal to at least 3 times the
appraised salvage value of the vessel.
(b) APPRAISALS.—The Secretary may appoint a
board of three appraisers to determine whether
a vessel satisfies subsection (a)(2). The costs of
the appraisal shall be paid by the owner of the
vessel.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1494.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

12107 ..........

46 App.:14 (words before last proviso).

R.S. § 4136 (words before last
proviso); Feb. 24, 1915, ch.
57, 38 Stat. 812; Pub. L.
103–182, title VI, § 686(a)(4),
Dec. 8, 1993, 107 Stat. 2220.

The words ‘‘The Secretary of Transportation may
issue a certificate of documentation with a coastwise
endorsement’’ and ‘‘when purchased by a citizen or citizens of the United States’’ are omitted as unnecessary
because section 12112, as revised by the bill, provides
the requirements for a wrecked vessel to obtain a
coastwise endorsement.
In subsection (c)(1), the words ‘‘or her possessions’’
are omitted as unnecessary because of the definition of
‘‘United States’’ in chapter 1 of the revised title.

PRIOR PROVISIONS
A prior section 12107, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 587; Pub. L. 100–239, § 6(a)(4), (5), Jan. 11, 1988, 101
Stat. 1782; Pub. L. 101–225, title III, § 301(a)(7), Dec. 12,
1989, 103 Stat. 1921, originally derived from section 65j
of former Title 46, Shipping, related to Great Lakes endorsements, prior to being repealed by Pub. L. 104–324,
title XI, § 1115(a), Oct. 19, 1996, 110 Stat. 3972.
A prior section 12108, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 587; Pub. L. 98–454, title III, § 301(c), Oct. 5, 1984, 98
Stat. 1734; Pub. L. 100–239, §§ 3(4), (5), 6(a)(6), Jan. 11,
1988, 101 Stat. 1779, 1782; Pub. L. 101–225, title III,
§ 301(a)(8), Dec. 12, 1989, 103 Stat. 1921; Pub. L. 104–208,
div. A, title I, § 101(a) [title II, § 211(b)], Sept. 30, 1996, 110
Stat. 3009, 3009–41; Pub. L. 104–324, title III, § 301(e), title
VII, § 744, Oct. 19, 1996, 110 Stat. 3917, 3942; Pub. L.
107–295, title IV, § 409, Nov. 25, 2002, 116 Stat. 2117, originally derived from section 65k of former Title 46, Shipping, related to fishery endorsements, prior to being
omitted in the general amendment of this chapter by
Pub. L. 109–304. See sections 12102, 12113, and 12116 of
this title.
A prior section 12109, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 587; Pub. L. 99–36, § 1(a)(7)(C), May 15, 1985, 99 Stat.
67; Pub. L. 99–570, title III, § 3151, Oct. 27, 1986, 100 Stat.
3207–94; Pub. L. 100–710, title I, § 106(b)(5), Nov. 23, 1988,
102 Stat. 4752; Pub. L. 101–225, title III, § 301(a)(9), Dec.
12, 1989, 103 Stat. 1921; Pub. L. 101–595, title VI, § 603(9),
Nov. 16, 1990, 104 Stat. 2993, originally derived from section 65l of former Title 46, Shipping, related to recreational endorsements, prior to being omitted in the
general amendment of this chapter by Pub. L. 109–304.
See section 12114 of this title.
A prior section 12110, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 588; Pub. L. 99–36, § 1(a)(7)(D), May 15, 1985, 99 Stat.
67; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988, 102
Stat. 4750; Pub. L. 101–225, title III, § 301(a)(10), Dec. 12,
1989, 103 Stat. 1922; Pub. L. 102–388, title III, § 348(b), Oct.
6, 1992, 106 Stat. 1554; Pub. L. 102–587, title V, § 5213(a)(2),
Nov. 4, 1992, 106 Stat. 5077; Pub. L. 104–324, title III,
§ 301(c), (d)(1), Oct. 19, 1996, 110 Stat. 3916; Pub. L.
108–293, title IV, § 404(a), Aug. 9, 2004, 118 Stat. 1043,
originally derived from section 65m of former Title 46,
Shipping, related to limitations on operations authorized by certificates, prior to being omitted in the general amendment of this chapter by Pub. L. 109–304. See
sections 12102, 12114, and 12131 of this title.

SUBCHAPTER II—ENDORSEMENTS AND
SPECIAL DOCUMENTATION
§ 12111. Registry endorsement
(a) REQUIREMENTS.—A registry endorsement
may be issued for a vessel that satisfies the requirements of section 12103 of this title.
(b) AUTHORIZED ACTIVITY.—A vessel for which
a registry endorsement is issued may engage in
foreign trade or trade with Guam, American
Samoa, Wake, Midway, or Kingman Reef.
(c) CERTAIN VESSELS OWNED BY TRUSTS.—
(1) NONAPPLICATION OF BENEFICIARY CITIZENSHIP REQUIREMENT.—For the issuance of a certificate of documentation with only a registry
endorsement, the beneficiaries of a trust are
not required to be citizens of the United
States if the trust qualifies under paragraph
(2) and the vessel is subject to a charter to a
citizen of the United States.
(2) REQUIREMENTS FOR TRUST TO QUALIFY.—
(A) IN GENERAL.—Subject to subparagraph
(B), a trust qualifies under this paragraph
with respect to a vessel only if—
(i) each trustee is a citizen of the United
States; and
(ii) the application for documentation of
the vessel includes the affidavit of each

§ 12112

TITLE 46—SHIPPING

trustee stating that the trustee is not
aware of any reason involving a beneficiary of the trust that is not a citizen of
the United States, or involving any other
person that is not a citizen of the United
States, as a result of which the beneficiary
or other person would hold more than 25
percent of the aggregate power to influence or limit the exercise of the authority
of the trustee with respect to matters involving any ownership or operation of the
vessel that may adversely affect the interests of the United States.
(B) AUTHORITY OF NON-CITIZENS.—If any
person that is not a citizen of the United
States has authority to direct or participate
in directing a trustee for a trust in matters
involving any ownership or operation of the
vessel that may adversely affect the interests of the United States or in removing a
trustee for a trust without cause, either directly or indirectly through the control of
another person, the trust is not qualified
under this paragraph unless the trust instrument provides that persons who are not citizens of the United States may not hold more
than 25 percent of the aggregate authority
to so direct or remove a trustee.
(C) OWNERSHIP BY NON-CITIZENS.—Subparagraphs (A) and (B) do not prohibit a person
that is not a citizen of the United States
from holding more than 25 percent of the
beneficial interest in a trust.
(3) CITIZENSHIP OF PERSON CHARTERING VESSEL.—If a person chartering a vessel from a
trust that qualifies under paragraph (2) is a
citizen of the United States under section
50501 of this title, the vessel is deemed to be
owned by a citizen of the United States for
purposes of that section and related laws, except chapter 531 of this title.
(d) ACTIVITIES INVOLVING MOBILE OFFSHORE
DRILLING UNITS.—
(1) IN GENERAL.—Only a vessel for which a
certificate of documentation with a registry
endorsement is issued may engage in—
(A) the setting, relocation, or recovery of
the anchors or other mooring equipment of a
mobile offshore drilling unit that is located
over the outer Continental Shelf (as defined
in section 2(a) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1331(a))); or
(B) the transportation of merchandise or
personnel to or from a point in the United
States from or to a mobile offshore drilling
unit located over the outer Continental
Shelf that is not attached to the seabed.

Page 172
HISTORICAL AND REVISION NOTES

Revised
Section
12111(a) ......
12111(b) ......
12111(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12105(a).
46:12105(b).
46:12102(d).

PRIOR PROVISIONS
A prior section 12111, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 588; Pub. L. 100–710, title I, § 103(a), Nov. 23, 1988,
102 Stat. 4749; Pub. L. 104–324, title III, § 301(d)(2)(A),
Oct. 19, 1996, 110 Stat. 3916; Pub. L. 107–295, title II,
§ 205(c), Nov. 25, 2002, 116 Stat. 2096, originally derived
from section 65o of former Title 46, Shipping, related to
surrender and invalidation of certificates of documentation, prior to the general amendment of this
chapter by Pub. L. 109–304. See sections 12135 and 12136
of this title.
AMENDMENTS
2008—Pub. L. 110–181, § 3525(b), repealed Pub. L.
109–241, § 310. See 2006 Amendment note below.
Subsec. (d). Pub. L. 110–181, § 3525(a)(1), incorporated
the substance of the amendment by Pub. L. 109–241,
§ 310, into this section by adding subsec. (d). See 2006
Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–241, § 310, which directed the amendment of former section 12105 of this title from which
this section was derived in part, was repealed by Pub.
L. 110–181, § 3525(b). See 2008 Amendment note for subsec. (d) and Historical and Revision notes above.

§ 12112. Coastwise endorsement
(a) REQUIREMENTS.—A coastwise endorsement
may be issued for a vessel that—
(1) satisfies the requirements of section 12103
of this title;
(2)(A) was built in the United States; or
(B) if not built in the United States—
(i) was captured in war by citizens of the
United States and lawfully condemned as
prize;
(ii) was adjudged to be forfeited for a
breach of the laws of the United States; or
(iii) qualifies as a wrecked vessel under
section 12107 of this title; and
(3) otherwise qualifies under the laws of the
United States to engage in the coastwise
trade.
(b) AUTHORIZED ACTIVITY.—Subject to the laws
of the United States regulating the coastwise
trade, a vessel for which a coastwise endorsement is issued may engage in the coastwise
trade.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1495.)
HISTORICAL AND REVISION NOTES
Revised
Section
12112(a) ......
12112(b) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12106(a).
46:12106(b).

(2) COASTWISE TRADE NOT AUTHORIZED.—Nothing in paragraph (1) authorizes the employment in the coastwise trade of a vessel that
does not meet the requirements of section
12112 of this title.

In subsection (b), the word ‘‘only’’ is omitted because
section 12102(a), as revised by the bill, contains a general requirement for appropriate documentation to engage in any trade.

(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1494;
Pub. L. 109–241, title III, § 310, July 11, 2006, 120
Stat. 529; Pub. L. 110–181, div. C, title XXXV,
§ 3525(a)(1), (b), Jan. 28, 2008, 122 Stat. 600, 601.)

A prior section 12112, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 588; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750; Pub. L. 101–225, title III, § 301(a)(11), Dec.

PRIOR PROVISIONS

Page 173

TITLE 46—SHIPPING

12, 1989, 103 Stat. 1922, originally derived from section
65p of former Title 46, Shipping, related to vessels procured outside the United States, prior to the general
amendment of this chapter by Pub. L. 109–304. See section 12115 of this title.
CERTAIN VESSELS ENGAGED IN ALASKA COASTWISE
TRADE
Pub. L. 108–293, title VI, § 608(b), Aug. 9, 2004, 118 Stat.
1056, provided that:
‘‘(1) IN GENERAL.—Notwithstanding any other provision of law, a person shall be treated as a citizen of the
United States under section 12102(a) [now section
12103(a), (b)] of title 46, United States Code, section 2 of
the Shipping Act, 1916 ([former] 46 U.S.C. App. 802) [see
46 U.S.C. 50501], and section 27 of the Merchant Marine
Act, 1920 ([former] 46 U.S.C. App. 883) [see Disposition
Table preceding section 101 of this title], for purposes of
issuance of a coastwise endorsement under section
12106(e) of title 46, United States Code (as that section
was in effect on the day before the date of enactment
of this Act [Aug. 9, 2004]), for a vessel owned by the person on the date of enactment of this Act, or any replacement vessel of a similar size and function, if the
person—
‘‘(A) owned a vessel before January 1, 2001, that had
a coastwise endorsement under [former] section
12106(e) of title 46, United States Code; and
‘‘(B) as of the date of the enactment of this Act
[Aug. 9, 2004], derives substantially all of its revenue
from leasing vessels engaged in the transportation or
distribution of petroleum products and other cargo in
Alaska.
‘‘(2) LIMITATION ON COASTWISE TRADE.—A vessel owned
by a person described in paragraph (1) for which a
coastwise endorsement is issued under [former] section
12106(e) of title 46, United States Code, may be employed in the coastwise trade only within Alaska and in
the coastwise trade to and from Alaska.
‘‘(3) TERMINATION.—The application of this subsection
to a person described in paragraph (1) shall terminate
if all of that person’s vessels described in paragraph (1)
are sold to a person eligible to document vessels under
section 12106(a) [now section 12112(a)] of title 46, United
States Code.’’

§ 12113. Fishery endorsement
(a) REQUIREMENTS.—A fishery endorsement
may be issued for a vessel that—
(1) satisfies the requirements of section 12103
of this title and, if owned by an entity, the entity satisfies the ownership requirements in
subsection (c);
(2) was built in the United States;
(3) if rebuilt, was rebuilt in the United
States;
(4) was not forfeited to the United States
Government after July 1, 2001, for a breach of
the laws of the United States; and
(5) otherwise qualifies under the laws of the
United States to engage in the fisheries.
(b) AUTHORIZED ACTIVITY.—
(1) IN GENERAL.—Subject to the laws of the
United States regulating the fisheries, a vessel
for which a fishery endorsement is issued may
engage in the fisheries.
(2) USE BY PROHIBITED PERSONS.—A fishery
endorsement is invalid immediately if the vessel for which it is issued is used as a fishing
vessel while it is chartered or leased to an individual who is not a citizen of the United
States or to an entity that is not eligible to
own a vessel with a fishery endorsement.
(c) OWNERSHIP REQUIREMENTS FOR ENTITIES.—
(1) IN GENERAL.—A vessel owned by an entity
is eligible for a fishery endorsement only if at

§ 12113

least 75 percent of the interest in the entity,
at each tier of ownership and in the aggregate,
is owned and controlled by citizens of the
United States.
(2) DETERMINING 75 PERCENT INTEREST.—In determining whether at least 75 percent of the
interest in the entity is owned and controlled
by citizens of the United States under paragraph (1), the Secretary shall apply section
50501(d) of this title, except that for this purpose the terms ‘‘control’’ or ‘‘controlled’’—
(A) include the right to—
(i) direct the business of the entity;
(ii) limit the actions of or replace the
chief executive officer, a majority of the
board of directors, any general partner, or
any person serving in a management capacity of the entity; or
(iii) direct the transfer, operation, or
manning of a vessel with a fishery endorsement; but
(B) do not include the right to simply participate in the activities under subparagraph
(A), or the exercise of rights under loan or
mortgage covenants by a mortgagee eligible
to be a preferred mortgagee under section
31322(a) of this title, except that a mortgagee not eligible to own a vessel with a fishery endorsement may only operate such a
vessel to the extent necessary for the immediate safety of the vessel or for repairs, drydocking, or berthing changes.
(3) EXCEPTIONS.—This subsection does not
apply to a vessel when it is engaged in the
fisheries in the exclusive economic zone under
the authority of the Western Pacific Fishery
Management Council established under section 302(a)(1)(H) of the Magnuson-Stevens
Fishery Conservation and Management Act (16
U.S.C. 1852(a)(1)(H)) or to a purse seine vessel
when it is engaged in tuna fishing in the Pacific Ocean outside the exclusive economic
zone or pursuant to the South Pacific Regional Fisheries Treaty, provided that the
owner of the vessel continues to comply with
the eligibility requirements for a fishery endorsement under the Federal law that was in
effect on October 1, 1998. A fishery endorsement issued pursuant to this paragraph is
valid for engaging only in the activities described in this paragraph.
(d) REQUIREMENTS BASED ON LENGTH, TONNAGE,
HORSEPOWER.—
(1) APPLICATION.—This subsection applies to
a vessel that—
(A) is greater than 165 feet in registered
length;
(B) is more than 750 gross registered tons
as measured under chapter 145 of this title or
1,900 gross registered tons as measured under
chapter 143 of this title; or
(C) has an engine or engines capable of
producing a total of more than 3,000 shaft
horsepower.

OR

(2) REQUIREMENTS.—A vessel subject to this
subsection is not eligible for a fishery endorsement unless—
(A)(i) a certificate of documentation was
issued for the vessel and endorsed with a

§ 12113

TITLE 46—SHIPPING

fishery endorsement that was effective on
September 25, 1997; and
(ii) the vessel is not placed under foreign
registry after October 21, 1998;
(B) the owner of the vessel demonstrates
to the Secretary that the regional fishery
management council of jurisdiction established under section 302(a)(1) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1852(a)(1)) has recommended after October 21, 1998, and the
Secretary of Commerce has approved, conservation and management measures in accordance with the American Fisheries Act
(Public Law 105–277, div. C, title II) (16 U.S.C.
1851 note) 1 to allow the vessel to be used in
fisheries under the council’s authority;
(C) the vessel is either a rebuilt vessel or
a replacement vessel under section 208(g) of
the American Fisheries Act (title II of division C of Public Law 105–277; 112 Stat.
2681–627) and is eligible for a fishery endorsement under this section; or
(D) the vessel is a fish tender vessel that is
not engaged in the harvesting or processing
of fish.
(e) VESSELS MEASURING 100 FEET OR GREATER.—

(1) IN GENERAL.—The Administrator of the
Maritime Administration shall administer
subsections (c) and (d) with respect to vessels
100 feet or greater in registered length. The
owner of each such vessel shall file a statement of citizenship setting forth all relevant
facts regarding vessel ownership and control
with the Administrator on an annual basis to
demonstrate compliance with those provisions.
(2) REGULATIONS.—Regulations to implement
this subsection shall conform to the extent
practicable with the regulations establishing
the form of citizenship affidavit set forth in
part 355 of title 46, Code of Federal Regulations, as in effect on September 25, 1997, except
that the form of the statement shall be written in a manner to allow the owner of the vessel to satisfy any annual renewal requirements
for a certificate of documentation for the vessel and to comply with this subsection and
subsections (c) and (d), and shall not be required to be notarized.
(3) TRANSFER OF OWNERSHIP.—Transfers of
ownership and control of vessels subject to
subsection (c) or (d), which are 100 feet or
greater in registered length, shall be rigorously scrutinized for violations of those provisions, with particular attention given to—
(A) leases, charters, mortgages, financing,
and similar arrangements;
(B) the control of persons not eligible to
own a vessel with a fishery endorsement
under subsection (c) or (d), over the management, sales, financing, or other operations of
an entity; and
(C) contracts involving the purchase over
extended periods of time of all, or substantially all, of the living marine resources harvested by a fishing vessel.
1 See

References in Text note below.

Page 174

(f) VESSELS MEASURING LESS THAN 100 FEET.—
The Secretary shall establish reasonable and
necessary requirements to demonstrate compliance with subsections (c) and (d), with respect to
vessels measuring less than 100 feet in registered
length, and shall seek to minimize the administrative burden on individuals who own and operate those vessels.
(g) VESSELS PURCHASED THROUGH FISHING CAPACITY REDUCTION PROGRAM.—A vessel purchased by the Secretary of Commerce through a
fishing capacity reduction program under the
Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1801 et seq.) or section 308 of the Interjurisdictional Fisheries Act
of 1986 (16 U.S.C. 4107) is not eligible for a fishery
endorsement, and any fishery endorsement issued for that vessel is invalid.
(h) REVOCATION OF ENDORSEMENTS.—The Secretary shall revoke the fishery endorsement of
any vessel subject to subsection (c) or (d) whose
owner does not comply with those provisions.
(i) REGULATIONS.—Regulations to implement
subsections (c) and (d) and sections 12151(c) and
31322(b) of this title shall prohibit impermissible
transfers of ownership or control, specify any
transactions that require prior approval of an
implementing agency, identify transactions that
do not require prior agency approval, and to the
extent practicable, minimize disruptions to the
commercial fishing industry, to the traditional
financing arrangements of that industry, and to
the opportunity to form fishery cooperatives.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1495;
Pub. L. 110–181, div. C, title XXXV, § 3529(a)(2),
Jan. 28, 2008, 122 Stat. 603; Pub. L. 111–281, title
VI, § 602(a), Oct. 15, 2010, 124 Stat. 2959.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12113(a) ......
12113(b)(1) ..
12113(b)(2) ..
12113(c)(1) ..
12113(c)(2) ..
12113(c)(3) ..
12113(d) ......
12113(e) ......

46:12108(a).
46:12108(b).
46:12102(c)(3).
46:12102(c)(1).
46:12102(c)(2).
46:12102(c)(4).
46:12102(c)(5).
46:12102 note.

12113(f) .......

46:12102 note.

12113(g) ......
12113(h) ......

46:12108(d).
46:12102 note.

12113(i) .......

46:12102 note.

Source (Statutes at Large)

Pub. L. 105–277, div. C, title
II, § 203(c), Oct. 21, 1998, 112
Stat. 2681–619.
Pub. L. 105–277, div. C, title
II, § 203(d), Oct. 21, 1998, 112
Stat. 2681–619.
Pub. L. 105–277, div. C, title
II, § 203(e), Oct. 21, 1998, 112
Stat. 2681–619.
Pub. L. 105–277, div. C, title
II, § 203(b), Oct. 21, 1998, 112
Stat. 2681–619.

In subsection (b)(1), the word ‘‘only’’ is omitted because section 12102(a), as revised by the bill, contains a
general requirement for appropriate documentation to
engage in any trade.
In subsection (c)(1), the word ‘‘entity’’ is substituted
for ‘‘corporation, partnership, association, trust, joint
venture, limited liability company, limited liability
partnership, or any other entity’’ to eliminate unnecessary words.
In subsection (e)(3), the words ‘‘After October 1, 2001’’
are omitted as obsolete.
In subsection (i), the first two sentences of section
203(b) of Public Law 105–277 are omitted as obsolete.
REFERENCES IN TEXT
The American Fisheries Act (Public Law 105–277, div.
C, title II) (16 U.S.C. 1851 note), referred to in subsec.

Page 175

§ 12114

TITLE 46—SHIPPING

(d)(2)(B), probably should be a reference to the Magnuson-Stevens Fishery Conservation and Management
Act (see note below). Subsec. (d)(2)(B) of this section
was derived from former section 12102(c)(5)(B) of this
title in the general amendment of this chapter by Pub.
L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1491. As part of that
amendment, the reference to the American Fisheries
Act was substituted for a reference to ‘‘such Act’’
which had been preceded by references to both of the
above named Acts. See the Historical and Revision
Notes above and section 2 of Pub. L. 109–304, set out as
a Legislative Purpose and Construction note preceding
section 101 of this title.
Section 208(g) of the American Fisheries Act, referred
to in subsec. (d)(2)(C), is section 208(g) of title II of div.
C of Pub. L. 105–277, Oct. 21, 1998, 112 Stat. 2681–627,
which is set out in a note under section 1851 of Title 16,
Conservation.
The Magnuson-Stevens Fishery Conservation and
Management Act, referred to in subsec. (g), is Pub. L.
94–265, Apr. 13, 1976, 90 Stat. 331, which is classified
principally to chapter 38 (§ 1801 et seq.) of Title 16, Conservation. For complete classification of this Act to
the Code, see Short Title note set out under section
1801 of Title 16 and Tables.
PRIOR PROVISIONS
A prior section 12113, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 588, originally derived from section 65a of former
Title 46, Shipping, related to ports of documentation,
prior to being repealed by Pub. L. 100–710, title I,
§§ 106(b)(5), 107(a), Nov. 23, 1988, 102 Stat. 4752, effective
Jan. 1, 1989.
AMENDMENTS
2010—Subsec. (d)(2)(A)(i). Pub. L. 111–281, § 602(a)(1),
inserted ‘‘and’’ at the end.
Subsec. (d)(2)(A)(ii). Pub. L. 111–281, § 602(a)(2), struck
out ‘‘and’’ at the end.
Subsec. (d)(2)(A)(iii). Pub. L. 111–281, § 602(a)(3), struck
out cl. (iii) which read as follows: ‘‘if the fishery endorsement is invalidated after October 21, 1998, application is made for a new fishery endorsement within 15
business days of the invalidation; or’’.
Subsec. (d)(2)(C), (D). Pub. L. 111–281, § 602(a)(4), (5),
added subpars. (C) and (D).
2008—Subsec. (g). Pub. L. 110–181 inserted ‘‘and’’ after
‘‘Conservation’’.
INAPPLICABILITY OF SUBSECTION (d) TO CERTAIN
MENHADEN FISHERIES
Pub. L. 106–31, title III, § 3027(c), May 21, 1999, 113
Stat. 102, provided that: ‘‘The limitation on registered
length contained in section 12102(c)(6) [now section
12113(d)] of title 46, United States Code, shall not apply
to a vessel used solely in any menhaden fishery which
is located in the Gulf of Mexico or along the Atlantic
coast south of the area under the authority of the New
England Fishery Management Council for so long as
such vessel is used in such fishery.’’
EXCEPTION TO BUILD REQUIREMENT FOR PRIOR VESSELS
Pub. L. 100–239, § 4, Jan. 11, 1988, 101 Stat. 1779, as
amended by Pub. L. 101–225, title III, § 310, Dec. 12, 1989,
103 Stat. 1926, provided that:
‘‘(a) Notwithstanding the requirements of section
12108(a)(2) and (3) [now section 12113(a)(2) and (3)] of
title 46, United States Code, a fishery license may be issued to a vessel that before July 28, 1987—
‘‘(1)(A) was documented under chapter 121 of that
title; and
‘‘(B) was operated as a fish processing or fish tender
vessel in the navigable waters of the United States or
the exclusive economic zone;
‘‘(2) was a fish tender or fish processing vessel contracted to be purchased by a citizen of the United
States, if the purchase is shown by contract or similarly reliable evidence acceptable to the Secretary to
have been made for the purpose of using the vessel as
a fish tender or fish processing vessel in the fisheries;

‘‘(3) was documented under chapter 121 of that title
and—
‘‘(A) was rebuilt in a foreign country; or
‘‘(B) is subsequently rebuilt in the United States
for use as a fish processing vessel; or
‘‘(4) was built in the United States and—
‘‘(A) is rebuilt in a foreign country under a contract entered into before 6 months after the date of
enactment of this Act [Jan. 11, 1988], and was purchased or contracted to be purchased before July 28,
1987 with the intent that the vessel be used in the
fisheries, if that intent is evidenced by—
‘‘(i) the contract itself; or
‘‘(ii) a ruling letter by the Coast Guard before
July 29, 1987 under 46 C.F.R. § 67.21–1 or § 67.27–3
pursuant to a ruling request evidencing that intent; or
‘‘(B) is purchased for use as a fish processing vessel under a contract entered into after July 27, 1987,
if—
‘‘(i) a contract to rebuild the vessel for use as a
fish processing vessel was entered into before September 1, 1987; and
‘‘(ii) that vessel is part of a specific business
plan involving the conversion in foreign shipyards
of a series of three vessels and rebuilding work on
at least one of the vessels had begun before July
28, 1987.
‘‘(b) A vessel rebuilt under subsection (a)(3)(B) or (4)
of this section must be redelivered to the owner before
July 28, 1990. However, the Secretary may, on proof of
circumstances beyond the control of the owner of a vessel affected by this section, extend the period for rebuilding in a foreign country permitted by this section.
‘‘(c)(1) Any fishery license or registry issued to a vessel built in a foreign country under this section shall be
endorsed to restrict the vessel from catching, taking,
or harvesting.
‘‘(2) Before being issued a fishery license, any vessel
described in subsection (a)(2) of this section must be
documented under an application for documentation
acceptable to the Secretary filed before July 28, 1987,
except that an alternative vessel of no greater tonnage
than the vessel in the application may be substituted,
if that substitution is made by the original applicant.’’
DEFINITIONS
Pub. L. 100–239, § 6(d), Jan. 11, 1988, 101 Stat. 1782, provided that: ‘‘The terms in this Act [see Tables for classification] have the same meaning as in subtitle II [now
also sections 114 and 115] of title 46, United States Code
(as amended by this Act).’’

§ 12114. Recreational endorsement
(a) REQUIREMENTS.—A recreational endorsement may be issued for a vessel that satisfies
the requirements of section 12103 of this title.
(b) AUTHORIZED ACTIVITY.—A vessel operating
under a recreational endorsement may be operated only for pleasure.
(c) APPLICATION OF CUSTOMS LAWS.—A vessel
for which a recreational endorsement is issued
may proceed between a port of the United States
and a port of a foreign country without entering
or clearing with the Secretary of Homeland Security. However, a recreational vessel is subject
to the requirements for reporting arrivals under
section 433 of the Tariff Act of 1930 (19 U.S.C.
1433), and individuals on the vessel are subject
to applicable customs regulations.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1498.)
HISTORICAL AND REVISION NOTES
Revised
Section
12114(a) ......

Source (U.S. Code)
46:12109(a).

Source (Statutes at Large)

§ 12115

TITLE 46—SHIPPING

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section
12114(b) ......
12114(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12109(c).
46:12110(c).
46:12109(b).

In subsection (c), the words ‘‘Secretary of Homeland
Security’’ are substituted for ‘‘Customs Service’’ because the functions of the Customs Service and of the
Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub.
L. 107–296, 116 Stat. 2178).
PRIOR PROVISIONS
A prior section 12114, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589; Pub. L. 99–36, § 1(a)(8), May 15, 1985, 99 Stat. 67,
originally derived from section 65c of former Title 46,
Shipping, related to home ports, prior to being repealed
by Pub. L. 100–710, title I, §§ 106(b)(5), 107(a), Nov. 23,
1988, 102 Stat. 4752, effective Jan. 1, 1989.

§ 12115. Temporary endorsement for vessels procured outside the United States
(a) GENERAL AUTHORITY.—The Secretary and
the Secretary of State, acting jointly, may provide for the issuance of a certificate of documentation with an appropriate endorsement for
a vessel procured outside the United States and
meeting the ownership requirements of section
12103 of this title.
(b) AUTHORIZED ACTIVITY.—Subject to limitations the Secretary may prescribe, a vessel documented under this section may proceed to the
United States and engage en route in foreign
trade or trade with Guam, American Samoa,
Wake, Midway, or Kingman Reef.
(c) APPLICATION OF UNITED STATES JURISDICTION AND LAWS.—A vessel documented under this
section is subject to the jurisdiction and laws of
the United States. However, if the Secretary
considers it to be in the public interest, the Secretary may suspend for a period of not more
than 6 months the application of a vessel inspection law carried out by the Secretary or regulations prescribed under that law.
(d) SURRENDER OF CERTIFICATE.—On the vessel’s arrival in the United States, the certificate
of documentation shall be surrendered as provided by regulations prescribed by the Secretary.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1498.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12115(a) ......
12115(b) ......

46:12112(a).
46:12112(b) (1st sentence).
46:12112(c).
46:12112(b) (last sentence).

12115(c) ......
12115(d) ......

Source (Statutes at Large)

PRIOR PROVISIONS
A prior section 12115, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589, originally derived from section 65d of former
Title 46, Shipping, related to names of vessels, prior to
being repealed by Pub. L. 100–710, title I, §§ 106(b)(5),
107(a), Nov. 23, 1988, 102 Stat. 4752, effective Jan. 1, 1989.

§ 12116. Limited endorsements for Guam, American Samoa, and Northern Mariana Islands
(a) ENDORSEMENTS.—A vessel satisfying the requirements of subsection (b) may be issued—

Page 176

(1) a coastwise endorsement to engage in the
coastwise trade of fisheries products between
places in Guam, American Samoa, and the
Northern Mariana Islands; or
(2) a fishery endorsement to engage in fishing in the territorial sea and fishery conservation zone adjacent to Guam, American Samoa,
and the Northern Mariana Islands.
(b) REQUIREMENTS.—An endorsement may be
issued under subsection (a) for a vessel that—
(1) satisfies the requirements of section 12103
of this title;
(2) was not built in the United States, except
that for an endorsement under subsection
(a)(2), the vessel must not have been built or
rebuilt in the United States;
(3) is less than 200 gross tons as measured
under section 14502 of this title, or an alternate tonnage as measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title; and
(4) otherwise qualifies under the laws of the
United States to engage in the coastwise trade
or the fisheries, as the case may be.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1499.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12116 ..........

Source (Statutes at Large)

46:12106(c).
46:12108(c).

PRIOR PROVISIONS
A prior section 12116, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589, originally derived from section 65f of former
Title 46, Shipping, related to numbers, signal letters,
and identification markings, prior to being repealed by
Pub. L. 100–710, title I, §§ 106(b)(5), 107(a), Nov. 23, 1988,
102 Stat. 4752, effective Jan. 1, 1989.
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

§ 12117. Oil spill response vessels
(a) REQUIREMENTS.—A coastwise endorsement
may be issued for a vessel that—
(1) satisfies the requirements for a coastwise
endorsement, except for the ownership requirement otherwise applicable without regard to this section;
(2) is owned by a not-for-profit oil spill response cooperative or by members of such a
cooperative that dedicate the vessel to use by
the cooperative;
(3) is at least 50 percent owned by individuals or entities described in section 12103(b) of
this title; and
(4) is to be used only for—
(i) deploying equipment, supplies, and personnel to recover, contain, or transport oil
discharged into the navigable waters of the
United States or the exclusive economic
zone; or
(ii) training exercises to prepare to respond to such a discharge.
(b) DEEMED OWNED BY CITIZENS.—A vessel satisfying subsection (a) is deemed to be owned
only by citizens of the United States under sections 12103, 12132, and 50501 of this title.

Page 177

TITLE 46—SHIPPING

(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1499.)
HISTORICAL AND REVISION NOTES
Revised
Section
12117 ..........

Source (U.S. Code)

Source (Statutes at Large)

46:12106(d).

PRIOR PROVISIONS
A prior section 12117, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750, originally derived from section 65q of
former Title 46, Shipping, related to recording of
United States built vessels, prior to the general amendment of this chapter by Pub. L. 109–304. See section
12137 of this title.

§ 12118. Owners engaged primarily in manufacturing or mineral industry
(a) DEFINITIONS.—In this section:
CORPORATION.—The
term
(1)
BOWATERS
‘‘Bowaters corporation’’ means a corporation
that has filed a certificate under oath with the
Secretary, in the form and at the times prescribed by the Secretary, establishing that—
(A) the corporation is incorporated under
the laws of the United States or a State;
(B) a majority of the officers and directors
of the corporation are individuals who are
citizens of the United States;
(C) at least 90 percent of the employees of
the corporation are residents of the United
States;
(D) the corporation is engaged primarily in
a manufacturing or mineral industry in the
United States;
(E) the total book value of the vessels
owned by the corporation is not more than
10 percent of the total book value of the assets of the corporation; and
(F) the corporation buys or produces in the
United States at least 75 percent of the raw
materials used or sold in its operations.
(2) PARENT.—The term ‘‘parent’’ means a
corporation that has filed a certificate under
oath with the Secretary, in the form and at
the times prescribed by the Secretary, establishing that the corporation—
(A) is incorporated under the laws of the
United States or a State; and
(B) controls, directly or indirectly, at least
50 percent of the voting stock of a Bowaters
corporation.
(3) SUBSIDIARY.—The term ‘‘subsidiary’’
means a corporation that has filed a certificate under oath with the Secretary, in the
form and at the times prescribed by the Secretary, establishing that the corporation—
(A) is incorporated under the laws of the
United States or a State; and
(B) has at least 50 percent of its voting
stock controlled, directly or indirectly, by a
Bowaters corporation or its parent.
(b) DEEMED CITIZEN.—A Bowaters corporation
is deemed to be a citizen of the United States for
purposes of chapters 121, 551, and 561 and section
80104 of this title.
(c) ISSUANCE OF DOCUMENTATION.—A certificate
of documentation and appropriate endorsement
may be issued for a vessel that—
(1) is owned by a Bowaters corporation;

§ 12118

(2) was built in the United States; and
(3)(A) is self-propelled and less than 500 gross
tons as measured under section 14502 of this
title, or an alternate tonnage as measured
under section 14302 of this title as prescribed
by the Secretary under section 14104 of this
title; or
(B) is not self-propelled.
(d) EFFECTS OF DOCUMENTATION.—
(1) IN GENERAL.—Subject to paragraph (2)—
(A) a vessel documented under this section
may engage in the coastwise trade; and
(B) the vessel and its owner and master are
entitled to the same benefits and are subject
to the same requirements and penalties as if
the vessel were otherwise documented or exempt from documentation under this chapter.
(2) TRANSPORTATION OF PASSENGERS OR MERCHANDISE.—A vessel documented under this
section may transport passengers or merchandise for hire in the coastwise trade only—
(A) as a service for a parent or subsidiary
of the corporation owning the vessel; or
(B) when under a demise or bareboat charter, at prevailing rates for use not in the domestic noncontiguous trades, from the corporation owning the vessel to a carrier
that—
(i) is subject to jurisdiction under subchapter II of chapter 135 of title 49;
(ii) otherwise qualifies as a citizen of the
United States under section 50501 of this
title; and
(iii) is not owned or controlled, directly
or indirectly, by the corporation owning
the vessel.
(e) VALIDITY OF CORPORATE CERTIFICATE.—A
certificate filed by a corporation under this section remains valid only as long as the corporation continues to satisfy the conditions required
of the corporation by this section. When a corporation no longer satisfies those conditions,
the corporation loses its status under this section and immediately shall surrender to the Secretary any documents issued to it based on that
status.
(f) PENALTIES.—
(1) FALSIFYING MATERIAL FACT.—If a corporation knowingly falsifies a material fact in a
certificate filed under subsection (a), the vessel (or its value) documented or operated
under this section shall be forfeited.
(2) TRANSPORTING MERCHANDISE.—If a vessel
transports merchandise for hire in violation of
this section, the merchandise shall be forfeited
to the United States Government.
(3) TRANSPORTING PASSENGERS.—If a vessel
transports passengers for hire in violation of
this section, the vessel is liable for a penalty
of $200 for each passenger so transported.
(4) REMISSION OR MITIGATION.—A penalty or
forfeiture incurred under this subsection may
be remitted or mitigated under section 2107(b)
of this title.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1500.)

§ 12119

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
12118(a)(1) ..

12118(a)(2),
(3).
12118(b) ......
12118(c) ......
12118(d)(1) ..
12118(d)(2) ..
12118(e) ......
12118(f) .......

Source (U.S. Code)
46 App.:883–1 (1st
par. words
through cl. (e)
less citizenship,
4th par. 1st sentence).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 27A, as
added Pub. L. 85–902, Sept.
2, 1958, 72 Stat. 1736; Pub.
L. 104–88, title III, § 321(2),
Dec. 29, 1995, 109 Stat. 950;
Pub. L. 104–324, title VII,
§ 706, Oct. 19, 1996, 110
Stat. 3934.

46 App.:883–1 (2d
par., 4th par. 2d
sentence).
46 App.:883–1 (1st
par. related to
citizenship).
46 App.:883–1 (3d
par. words before
5th comma).
46 App.:883–1 (3d
par. words after
5th comma).
46 App.:883–1 (1st
par. words after
cl. (e)).
46 App.:883–1 (last
par.).
46 App.:883–1 (4th
par. 3d–6th sentences).

In this section, the word ‘‘Secretary’’ is substituted
for ‘‘Secretary of the Treasury’’, thereby incorporating
the definition of ‘‘Secretary’’ in section 2101 of title 46.
The functions of the Secretary of the Treasury relating
to the Coast Guard previously were transferred to the
Secretary of Transportation by section 6(b) of the Department of Transportation Act (Pub. L. 89–670, Oct. 15,
1966, 80 Stat. 938). The Coast Guard and the functions of
the Secretary of Transportation relating to the Coast
Guard were again transferred to the Department of
Homeland Security by section 888(b) of the Homeland
Security Act of 2002 (Pub. L. 107–296, Nov. 25, 2002, 116
Stat. 2135).
In subsection (a)(1), the words ‘‘seeking hereunder to
document a vessel under the laws of the United States
or to operate a vessel exempt from documentation
under the laws of the United States’’ are omitted as unnecessary because of the reorganization of the section.
Subsection (d)(1)(B) is substituted for ‘‘together with
their owners or masters, shall be entitled to all the
other benefits and privileges and shall be subject to the
same requirements, penalties, and forfeitures as may
be applicable in the case of vessels built in the United
States and otherwise documented or exempt from documentation under the laws of the United States’’ to
eliminate unnecessary words.
In subsection (d)(2), the words before subparagraph
(A) are substituted for ‘‘no vessel owned by any such
corporation shall engage in the fisheries or in the
transportation of merchandise or passengers for hire
between points in the United States, including Territories, Districts, and possessions thereof, embraced
within the coastwise laws, except’’ to eliminate unnecessary words. See the definition of ‘‘United States’’ in
chapter 1 of the revised title.
PRIOR PROVISIONS
A prior section 12118, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589, originally derived from section 65r of former
Title 46, Shipping, related to registration of funnel
marks and house flags, prior to being repealed by Pub.
L. 100–710, title I, §§ 106(b)(5), 107(a), Nov. 23, 1988, 102
Stat. 4752, effective Jan. 1, 1989.

§ 12119. Owners engaged primarily in leasing or
financing transactions
(a) DEFINITIONS.—In this section:
(1) AFFILIATE.—The term ‘‘affiliate’’ means,
with respect to any person, any other person
that is—
(i) directly or indirectly controlled by,
under common control with, or controlling
that person; or

Page 178

(ii) named as being part of the same consolidated group in any report or other document submitted to the United States Securities and Exchange Commission or the Internal Revenue Service.
(2) CARGO.—The term ‘‘cargo’’ does not include cargo to which title is held for non-commercial reasons and primarily for the purpose
of evading the requirements of subsection
(c)(3).
(3) OIL.—The term ‘‘oil’’ has the meaning
given that term in section 2101(20) of this title.
(4) PASSIVE INVESTMENT.—The term ‘‘passive
investment’’ means an investment in which
neither the investor nor any affiliate of the investor is involved in, or has the power to be involved in, the formulation, determination, or
direction of any activity or function concerning the management, use, or operation of the
asset that is the subject of the investment.
(5) QUALIFIED PROPRIETARY CARGO.—The
term ‘‘qualified proprietary cargo’’ means—
(A) oil, petroleum products, petrochemicals, or liquefied natural gas cargo that is
beneficially owned by the person that submits to the Secretary an application or annual certification under subsection (c)(3), or
by an affiliate of that person, immediately
before, during, or immediately after the
cargo is carried in coastwise trade on a vessel owned by that person;
(B) oil, petroleum products, petrochemicals, or liquefied natural gas cargo not beneficially owned by the person that submits to
the Secretary an application or an annual
certification under subsection (c)(3), or by
an affiliate of that person, but which is carried in coastwise trade by a vessel owned by
that person and which is part of an arrangement in which vessels owned by that person
and at least one other person are operated
collectively as one fleet, to the extent that
an equal amount of oil, petroleum products,
petrochemicals, or liquefied natural gas
cargo beneficially owned by that person, or
by an affiliate of that person, is carried in
coastwise trade on one or more other vessels, not owned by that person, or by an affiliate of that person, if the other vessel or
vessels are also part of the same arrangement;
(C) in the case of a towing vessel associated with a non-self-propelled tank vessel
where both vessels function as a single selfpropelled vessel, oil, petroleum products, petrochemicals, or liquefied natural gas cargo
that is beneficially owned by the person that
owns both the towing vessel and the nonself-propelled tank vessel, or any United
States affiliate of that person, immediately
before, during, or immediately after the
cargo is carried in coastwise trade on either
of those vessels; or
(D) any oil, petroleum products, petrochemicals, or liquefied natural gas cargo
carried on any vessel that is either a selfpropelled tank vessel having a length of at
least 210 meters or a tank vessel that is a
liquefied natural gas carrier that—
(i) was delivered by the builder of the
vessel to the owner of the vessel after December 31, 1999; and

Page 179

§ 12119

TITLE 46—SHIPPING

(ii) was purchased by a person for the
purpose, and with the reasonable expectation, of transporting on the vessel liquefied natural gas or unrefined petroleum
beneficially owned by the owner of the vessel, or an affiliate of the owner, from Alaska to the continental United States.
(6) UNITED STATES AFFILIATE.—The term
‘‘United States affiliate’’ means, with respect
to any person, an affiliate the principal place
of business of which is located in the United
States.
(b) REQUIREMENTS.—A coastwise endorsement
may be issued for a vessel if—
(1) the vessel satisfies the requirements for a
coastwise endorsement, except for the ownership requirement otherwise applicable without
regard to this section;
(2) the person that owns the vessel (or, if the
vessel is owned by a trust or similar arrangement, the beneficiary of the trust or similar
arrangement) meets the requirements of subsection (c);
(3) the vessel is under a demise charter to a
person that certifies to the Secretary that the
person is a citizen of the United States under
section 50501 of this title for engaging in the
coastwise trade; and
(4) the demise charter is for a period of at
least 3 years or a shorter period as may be prescribed by the Secretary.
(c) OWNERSHIP CERTIFICATION.—
(1) IN GENERAL.—A person meets the requirements of this subsection if the person transmits to the Secretary each year the certification required by paragraph (2) or (3) with respect to a vessel.
(2) INVESTMENT CERTIFICATION.—To meet the
certification requirement of this paragraph, a
person shall certify that it—
(A) is a leasing company, bank, or financial institution;
(B) owns, or holds the beneficial interest
in, the vessel solely as a passive investment;
(C) does not operate any vessel for hire and
is not an affiliate of any person that operates any vessel for hire; and
(D) is independent from, and not an affiliate of, any charterer of the vessel or any
other person that has the right, directly or
indirectly, to control or direct the movement or use of the vessel.
(3) CERTAIN TANK VESSELS.—
(A) IN GENERAL.—To meet the certification
requirement of this paragraph, a person
shall certify that—
(i) the aggregate book value of the vessels owned by the person and United
States affiliates of the person does not exceed 10 percent of the aggregate book
value of all assets owned by the person and
its United States affiliates;
(ii) not more than 10 percent of the aggregate revenues of the person and its
United States affiliates is derived from the
ownership, operation, or management of
vessels;
(iii) at least 70 percent of the aggregate
tonnage of all cargo carried by all vessels

owned by the person and its United States
affiliates and documented with a coastwise
endorsement is qualified proprietary
cargo;
(iv) any cargo other than qualified proprietary cargo carried by all vessels owned
by the person and its United States affiliates and documented with a coastwise endorsement consists of oil, petroleum products, petrochemicals, or liquified natural
gas;
(v) no vessel owned by the person or any
of its United States affiliates and documented with a coastwise endorsement carries molten sulphur; and
(vi) the person owned one or more vessels documented under this section as of
August 9, 2004.
CERTAIN VESa certification
under this paragraph only with respect to—
(i) a tank vessel having a tonnage of at
least 6,000 gross tons, as measured under
section 14502 of this title (or an alternative
tonnage measured under section 14302 of
this title as prescribed by the Secretary
under section 14104 of this title); or
(ii) a towing vessel associated with a
non-self-propelled tank vessel that meets
the requirements of clause (i), where both
vessels function as a single self-propelled
vessel.

(B) APPLICATION ONLY TO
SELS.—A person may make

(d) FILING OF DEMISE CHARTER.—The demise
charter and any amendments to the charter
shall be filed with the certification required by
subsection (b)(3) or within 10 days after filing an
amendment to the charter. The charter and
amendments shall be made available to the public.
(e) CONTINUATION OF ENDORSEMENT AFTER TERMINATION OF CHARTER.—When a charter required
by subsection (b)(3) is terminated for default by
the charterer, the Secretary may continue the
coastwise endorsement for not more than 6
months on terms and conditions the Secretary
may prescribe.
(f) DEEMED OWNED BY CITIZENS.—A vessel satisfying the requirements of this section is
deemed to be owned only by citizens of the
United States under sections 12103 and 50501 of
this title.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1501.)
HISTORICAL AND REVISION NOTES
Revised
Section
12119(a) ......
12119(b) ......
12119(c) ......
12119(d) ......
12119(e) ......
12119(f) .......

Source (U.S. Code)

Source (Statutes at Large)

46:12106(f)(4).
46:12106(e)(1).
46:12106(f)(1)–(3).
46:12106(e)(2).
46:12106(e)(3).
46:12106(e)(4).

In subsection (b), in paragraph (1), the words ‘‘satisfies the requirements for a coastwise endorsement, except for the ownership requirement otherwise applicable without regard to this section’’ are substituted for
‘‘otherwise eligible for documentation under this section’’ in 46 U.S.C. 12106(e)(1)(E) for clarity. Subparagraph (A) of 46 U.S.C. 12106(e)(1) is omitted as redundant to the general requirements in revised section
12112 on coastwise endorsements.

§ 12120

TITLE 46—SHIPPING

In subsection (c)(3), the words ‘‘documented with a
coastwise endorsement’’ are substituted for ‘‘documented under this section’’ because former section
12106 is being divided into multiple sections.
Subsection (e) is substituted for ‘‘(3) Upon termination by a demise charterer required under paragraph
(1)(C), the coastwise endorsement of the vessel may, in
the sole discretion of the Secretary, be continued after
the termination for default of the demise charter for a
period not to exceed 6 months on such terms and conditions as the Secretary may prescribe’’ for clarity and
to eliminate unnecessary words.
PRIOR PROVISIONS
A prior section 12119, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750, originally derived from sections 65s and
881 of former Title 46, Shipping, related to list of documented vessels, prior to the general amendment of this
chapter by Pub. L. 109–304. See section 12138 of this
title.
APPLICATION TO CERTAIN CERTIFICATES
Pub. L. 108–293, title VI, § 608(c), Aug. 9, 2004, 118 Stat.
1057, provided that:
‘‘(1) IN GENERAL.—The amendments made by this section [amending provisions from which this section was
derived], and any regulations published after February
4, 2004, with respect to coastwise endorsements, shall
not apply to a certificate of documentation, or renewal
thereof, endorsed with a coastwise endorsement for a
vessel under section 12106(e) [now section 12119(b),
(d)–(f)] of title 46, United States Code, or a replacement
vessel of a similar size and function, that was issued
prior to the date of enactment of this Act [Aug. 9, 2004]
as long as the vessel is owned by the person named
therein, or by a subsidiary or affiliate of that person,
and the controlling interest in such owner has not been
transferred to a person that was not an affiliate of such
owner as of the date of enactment of this Act. Notwithstanding the preceding sentence, however, the amendments made by this section shall apply, beginning 3
years after the date of enactment of this Act, with respect to offshore supply vessels (as defined in section
2101(19) of title 46, United States Code, as that section
was in effect on the date of enactment of this Act) with
a certificate of documentation endorsed with a coastwise endorsement as of the date of enactment of this
Act, and the Secretary of the Department in which the
Coast Guard is operating shall revoke any such certificate if the vessel does not by then meet the requirements of section 12106(e) of title 46, United States Code,
as amended by this section.
‘‘(2) REPLACEMENT VESSEL.—For the purposes of this
subsection, ‘replacement vessel’ means—
‘‘(A) a temporary replacement vessel for a period of
not to exceed 180 days if the vessel described in paragraph (1) is unavailable due to an act of God or a marine casualty; or
‘‘(B) a permanent replacement vessel if—
‘‘(i) the vessel described in paragraph (1) is unavailable for more than 180 days due to an act of
God or a marine casualty; or
‘‘(ii) a contract to purchase or construct such replacement vessel is executed not later than December 31, 2004.’’
WAIVER OF QUALIFIED PROPRIETARY CARGO
REQUIREMENT
Pub. L. 108–293, title VI, § 608(d), Aug. 9, 2004, 118 Stat.
1057, provided that: ‘‘The Secretary of Transportation
shall waive or reduce the qualified proprietary cargo
requirement of section 12106(f)(3)(A)(iii) [now section
12119(c)(3)(A)(iii)] of title 46, United States Code, for a
vessel if the person that owns the vessel (or, if the vessel is owned by a trust or similar arrangement, the beneficiary of the trust or similar arrangement) notifies
the Secretary that circumstances beyond the direct
control of such person or its affiliates prevent, or rea-

Page 180

sonably threaten to prevent, such person from satisfying such requirement, and the Secretary does not, with
good cause, determine otherwise. The waiver or reduction shall apply during the period of time that such circumstances exist.’’

§ 12120. Liquified gas tankers
Notwithstanding any agreement with the
United States Government, the Secretary may
issue a certificate of documentation with a
coastwise endorsement for a vessel to transport
liquified natural gas or liquified petroleum gas
to Puerto Rico from other ports in the United
States, if the vessel—
(1) is a foreign built vessel that was built before October 19, 1996; or
(2) was documented under this chapter before that date, even if the vessel is placed
under a foreign registry and subsequently redocumented under this chapter for operation
under this section.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1504.)
HISTORICAL AND REVISION NOTES
Revised
Section
12120 ..........

Source (U.S. Code)
46 App.:883 note.

Source (Statutes at Large)
Pub. L. 104–324, title VII,
§ 1120(f), Oct. 19, 1996, 110
Stat. 3978.

The words ‘‘Notwithstanding section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), section 12106
of title 46, United States Code, section 506 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1156)’’ are omitted as unnecessary. The words ‘‘the Commonwealth of’’
are omitted as unnecessary and for consistency in the
revised title.
PRIOR PROVISIONS
A prior section 12120, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750; Pub. L. 108–293, title IV, § 401, Aug. 9, 2004,
118 Stat. 1042; Pub. L. 109–241, title III, § 308, July 11,
2006, 120 Stat. 528, originally derived from section 65t of
former Title 46, Shipping, related to reports, prior to
the general amendment of this chapter by Pub. L.
109–304. See section 12139 of this title.

§ 12121. Small passenger vessels and uninspected
passenger vessels
(a) DEFINITIONS.—In this section:
(1) ELIGIBLE VESSEL.—The term ‘‘eligible
vessel’’ means a vessel that—
(A) was not built in the United States and
is at least 3 years old; or
(B) if rebuilt, was rebuilt outside the
United States at least 3 years before the certificate requested under subsection (b) would
take effect.
(2) SMALL PASSENGER VESSEL; UNINSPECTED
PASSENGER VESSEL; PASSENGER FOR HIRE.—The
terms ‘‘small passenger vessel’’, ‘‘uninspected
passenger vessel’’, and ‘‘passenger for hire’’
have the meaning given those terms in section
2101 of this title.
(b) ISSUANCE OF CERTIFICATE AND ENDORSEMENT.—Notwithstanding sections 12112, 12113,
55102, and 55103 of this title, the Secretary may
issue a certificate of documentation with an appropriate endorsement for employment in the
coastwise trade as a small passenger vessel or an
uninspected passenger vessel in the case of an

Page 181

eligible vessel authorized to carry no more than
12 passengers for hire if the Secretary of Transportation, after notice and an opportunity for
public comment, determines that the employment of the vessel in the coastwise trade will
not adversely affect—
(1) United States vessel builders; or
(2) the coastwise trade business of any person that employs vessels built in the United
States in that business.
(c) REVOCATION.—
(1) FOR FRAUD.—The Secretary shall revoke
a certificate or endorsement issued under subsection (b) if the Secretary of Transportation,
after notice and an opportunity for a hearing,
determines that the certificate or endorsement was obtained by fraud.
(2) OTHER PROVISIONS NOT AFFECTED.—Paragraph (1) does not affect—
(A) the criminal prohibition on fraud and
false statements in section 1001 of title 18; or
(B) any other authority of the Secretary to
revoke a certificate or endorsement issued
under subsection (b).
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1504.)
HISTORICAL AND REVISION NOTES
Revised
Section
12121 ..........

§ 12132

TITLE 46—SHIPPING

Source (U.S. Code)
46:12106 note.

Guard Authorization Act of 1998 [Pub. L. 105–383] ([formerly] 46 U.S.C. 12106 note) is repealed. The repeal of
section 505 shall have no effect on the validity of any
certificate or endorsement issued under section 502 of
that Act [now 46 U.S.C. 12121(b)].’’

SUBCHAPTER III—MISCELLANEOUS
§ 12131. Command of documented vessels
(a) IN GENERAL.—Except as provided in subsection (b), a documented vessel may be placed
under the command only of a citizen of the
United States.
(b) EXCEPTIONS.—Subsection (a) does not apply
to—
(1) a vessel with only a recreational endorsement; or
(2) an unmanned barge operating outside of
the territorial waters of the United States.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1505;
Pub. L. 110–181, div. C, title XXXV, § 3529(a)(3),
Jan. 28, 2008, 122 Stat. 603.)
HISTORICAL AND REVISION NOTES
Revised
Section
12131 ..........

Source (Statutes at Large)
Pub. L. 105–383, title V,
§§ 502–504, Nov. 13, 1998, 112
Stat. 3445; Pub. L. 107–295,
title II, § 207(c)(2), Nov. 25,
2002, 116 Stat. 2097.

The definition of ‘‘Secretary’’ is omitted for consistency in the chapter.
PRIOR PROVISIONS
A prior section 12121, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589, originally derived from section 65v(2) of
former Title 46, Shipping, related to the authority of
the Secretary to prescribe regulations to carry out this
chapter, prior to being repealed by Pub. L. 100–710, title
I, §§ 106(b)(5), 107(a), Nov. 23, 1988, 102 Stat. 4752, effective Jan. 1, 1989.
A prior section 12122, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 590; Pub. L. 99–307, § 1(16), May 19, 1986, 100 Stat.
446; Pub. L. 104–324, title III, § 301(a), (b), Oct. 19, 1996,
110 Stat. 3916; Pub. L. 105–277, div. C, title II, § 203(f),
Oct. 21, 1998, 112 Stat. 2681–620; Pub. L. 106–31, title III,
§ 3027(b), May 21, 1999, 113 Stat. 101; Pub. L. 108–293, title
IV, § 404(b), Aug. 9, 2004, 118 Stat. 1043, originally derived from sections 65n and 65u(a) of former Title 46,
Shipping, related to penalties, prior to the general
amendment of this chapter by Pub. L. 109–304. See section 12151 of this title.
A prior section 12123, added Pub. L. 102–587, title V,
§ 5213(a)(3), Nov. 4, 1992, 106 Stat. 5077, related to denial
and revocation of endorsements, prior to the general
amendment of this chapter by Pub. L. 109–304. See section 12152 of this title.
Another prior section 12123, added Pub. L. 102–388,
title III, § 348(a), Oct. 6, 1992, 106 Stat. 1554, related to
the denial and revocation of trade or recreational endorsement upon failure of vessel’s owner to pay assessment of civil penalty for violation of law, prior to repeal by Pub. L. 104–324, title VII, § 746(a)(1), Oct. 19, 1996,
110 Stat. 3943.
A prior section 12124, added Pub. L. 105–383, title IV,
§ 401(a)(2), Nov. 13, 1998, 112 Stat. 3424, related to surrender of title and number, prior to the general amendment of this chapter by Pub. L. 109–304. See section
12106 of this title.
EFFECT OF REPEAL
Pub. L. 107–295, title II, § 207(c)(1), Nov. 25, 2002, 116
Stat. 2097, provided that: ‘‘Section 505 of the Coast

Source (U.S. Code)

Source (Statutes at Large)

46:12110(d).

AMENDMENTS
2008—Subsec. (a). Pub. L. 110–181 substituted ‘‘command’’ for ‘‘commmand’’.

§ 12132. Loss of coastwise trade privileges
(a) SOLD FOREIGN OR PLACED UNDER FOREIGN
REGISTRY.—A vessel of more than 200 gross tons
(as measured under chapter 143 of this title), eligible to engage in the coastwise trade, and later
sold foreign in whole or in part or placed under
foreign registry may not thereafter engage in
the coastwise trade.
(b) REBUILT OUTSIDE THE UNITED STATES.—A
vessel eligible to engage in the coastwise trade
and later rebuilt outside the United States may
not thereafter engage in the coastwise trade.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1505.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

12132(a) ......

46 App.:883 (1st proviso).

June 5, 1920, ch. 250, § 27 (1st
proviso, 2d proviso less
meaning of ‘‘rebuilt’’), 41
Stat. 999; July 2, 1935, ch.
355, 49 Stat. 442; July 14,
1956, ch. 600, § 1, 70 Stat.
544; Pub. L. 86–583, § 1,
July 5, 1960, 74 Stat. 321;
Pub. L. 100–239, § 6(c)(1),
Jan. 11, 1988, 101 Stat.
1782; Pub. L. 104–324, title
XI, § 1120(e), Oct. 19, 1996,
110 Stat. 3978.

12132(b) ......

46 App.:883 (2d proviso less meaning
of ‘‘rebuilt’’).

In subsection (a), the words ‘‘eligible to engage in the
coastwise trade’’ are substituted for ‘‘having at any
time acquired the lawful right to engage in the coastwise trade, either by virtue of having been built in, or
documented under the laws of the United States’’, and
the words ‘‘thereafter engage’’ are substituted for
‘‘hereafter acquire the right to engage’’, to eliminate
unnecessary words.
In subsection (b), the words ‘‘eligible to engage in the
coastwise trade’’ are substituted for ‘‘which has ac-

§ 12133

TITLE 46—SHIPPING

Page 182

quired the lawful right to engage in the coastwise
trade, by virtue of having been built in or documented
under the laws of the United States’’, and the words
‘‘thereafter engage’’ are substituted for ‘‘have the right
thereafter to engage’’, to eliminate unnecessary words.
See section 12101 for the meaning of ‘‘rebuilt in the
United States’’.

(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1506.)

§ 12133. Duty to carry certificate on vessel and
allow examination

In paragraph (2), the words ‘‘except for a recreational
endorsement’’ are omitted as unnecessary because a
recreational endorsement does not permit a vessel to
engage in a trade.

(a) DUTY TO CARRY.—The certificate of documentation of a vessel shall be carried on the vessel unless the vessel is exempt by regulation
from carrying the certificate.
(b) AVAILABILITY.—The owner or individual in
charge of a vessel required to carry its certificate of documentation shall make the certificate available for examination at the request of
an officer enforcing the revenue laws or as
otherwise required by law or regulation.
(c) CRIMINAL PENALTY.—A person willfully violating subsection (b) shall be fined under title
18, imprisoned for not more than one year, or
both.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1505.)
HISTORICAL AND REVISION NOTES
Revised
Section
12133 ..........

Source (U.S. Code)
46:12103(e).
46 App.:277.

Source (Statutes at Large)

R.S. § 4336; Aug. 5, 1935, ch.
438, title III, § 312, 49 Stat.
528; Pub. L. 85–237, § 2,
Aug. 30, 1957, 71 Stat. 518;
Pub. L. 103–182, title VI,
§ 686(a)(5), Dec. 8, 1993, 107
Stat. 2220.

This section consolidates and clarifies the requirements contained in the source provisions. The specific
civil penalties are omitted as unnecessary because of
the general civil penalty in section 12151(a) of the revised title. See also 19 U.S.C. 1581.

§ 12134. Evidentiary uses of documentation
A certificate of documentation is—
(1) conclusive evidence of nationality for
international purposes, but not in a proceeding conducted under the laws of the United
States;
(2) conclusive evidence of qualification to
engage in a specified trade; and
(3) not conclusive evidence of ownership in a
proceeding in which ownership is in issue.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1506.)
HISTORICAL AND REVISION NOTES
Revised
Section
12134 ..........

Source (U.S. Code)

Source (Statutes at Large)

HISTORICAL AND REVISION NOTES
Revised
Section
12135 ..........

Source (U.S. Code)

Source (Statutes at Large)

46:12111(a).

§ 12136. Surrender of certificates of documentation
(a) SURRENDER.—An invalid certificate of documentation, or a certificate with an invalid endorsement, shall be surrendered as provided by
regulations prescribed by the Secretary.
(b) CONDITIONS FOR SURRENDER.—
(1) VESSELS OVER 1,000 TONS.—The Secretary
may condition approval of the surrender of the
certificate of documentation for a vessel over
1,000 gross tons.
(2) VESSELS COVERED BY MORTGAGE.—The
Secretary may approve the surrender of the
certificate of documentation of a vessel covered by a mortgage filed or recorded under section 31321 of this title only if the mortgagee
consents.
(3) NOTICE OF LIEN.—The Secretary may not
refuse to approve the surrender of the certificate of documentation for a vessel solely on
the basis that a notice of a claim of a lien on
the vessel has been recorded under section
31343(a) of this title.
(c) CONTINUED APPLICATION OF CERTAIN
LAWS.—
(1) IN GENERAL.—Notwithstanding subsection
(a), until the certificate of documentation is
surrendered with the approval of the Secretary, a documented vessel is deemed to continue to be documented under this chapter for
purposes of—
(A) chapter 313 of this title for an instrument filed or recorded before the date of invalidation and an assignment after that
date;
(B) sections 56101 and 56102(a)(2) and chapter 563 of this title; and
(C) any other law of the United States
identified by the Secretary by regulation as
a law to which the Secretary applies this
subsection.
(2) EXCEPTION.—This subsection does not
apply when a vessel is forfeited or sold by
order of a district court of the United States.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1506.)

46:12104.

HISTORICAL AND REVISION NOTES

§ 12135. Invalidation of certificates of documentation

Revised
Section

A certificate of documentation or an endorsement on the certificate is invalid if the vessel
for which it is issued—
(1) no longer meets the requirements of this
chapter and regulations prescribed under this
chapter applicable to the certificate or endorsement; or
(2) is placed under the command of an individual not a citizen of the United States in
violation of section 12131 of this title.

12136(a) ......
12136(b)(1) ..
12136(b)(2) ..
12136(b)(3) ..
12136(c)(1) ..
12136(c)(2) ..

Source (U.S. Code)

Source (Statutes at Large)

46:12111(b).
46:12111(d)(2).
46:12111(c)(3).
46:12111(d)(1).
46:12111(c)(1).
46:12111(c)(2).

In subsection (a), the words ‘‘or a certificate with an
invalid endorsement’’ are added for clarity.
DOCUMENTATION SURRENDER AND INVALIDATION
Pub. L. 101–225, title III, § 301(b), Dec. 12, 1989, 103
Stat. 1922, provided that: ‘‘Section 12111(c)(3) [now sec-

Page 183

tion 12136(b)(2)] of title 46, United States Code, does not
apply to a mortgage that—
‘‘(1) was filed or recorded before January 1, 1989;
and
‘‘(2) was not a preferred mortgage (as that term is
defined in section 31301(6) of that title) on that date.’’

§ 12137. Recording of vessels built in the United
States
The Secretary may provide for recording and
certifying information about vessels built in the
United States that the Secretary considers to be
in the public interest.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1507.)
HISTORICAL AND REVISION NOTES
Revised
Section
12137 ..........

Source (U.S. Code)

Source (Statutes at Large)

46:12117.

§ 12138. List of documented vessels
(a) IN GENERAL.—The Secretary shall publish
periodically a list of all documented vessels and
information about those vessels that the Secretary considers pertinent or useful. The list
shall contain a notation clearly indicating all
vessels classed by the American Bureau of Shipping.
(b) VESSELS FOR CABLE LAYING, MAINTENANCE,
AND REPAIR.—
(1) IN GENERAL.—The Secretary of Transportation shall develop, maintain, and periodically update an inventory of vessels that are
documented under this chapter, are at least
200 feet in length, and have the capability to
lay, maintain, or repair a submarine cable,
without regard to whether a particular vessel
is classed as a cable ship or cable vessel.
(2) INFORMATION TO BE INCLUDED.—For each
vessel listed in the inventory, the Secretary of
Transportation shall include in the inventory—
(A) the name, length, beam, depth, and
other distinguishing characteristics of the
vessel;
(B) the abilities and limitations of the vessel with respect to laying, maintaining, and
repairing a submarine cable; and
(C) the name and address of the person to
whom inquiries regarding the vessel may be
made.
(3) PUBLICATION.—The Secretary of Transportation shall publish in the Federal Register
an updated inventory every 6 months.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1507.)
HISTORICAL AND REVISION NOTES
Revised
Section
12138(a) ......
12138(b) ......

§ 12139

TITLE 46—SHIPPING

Source (U.S. Code)
46:12119.
46:12119 note.

Source (Statutes at Large)

Pub. L. 107–295, title IV,
§ 403, Nov. 25, 2002, 116
Stat. 2114.

In subsection (b), the word ‘‘Secretary’’ is substituted
for ‘‘Secretary of Transportation’’ for consistency in
the chapter.

§ 12139. Reports
(a) IN GENERAL.—To ensure compliance with
this chapter and laws governing the qualifica-

tions of vessels to engage in the coastwise trade
and the fisheries, the Secretary may require
owners, masters, charterers, and mortgagees of
documented vessels to submit reports in any
reasonable form and manner the Secretary may
prescribe.
REBUILT
OUTSIDE
UNITED
(b)
VESSELS
STATES.—
(1) IN GENERAL.—Under regulations prescribed by the Secretary, if a vessel exceeding
the tonnage specified in paragraph (2) and documented or last documented under the laws of
the United States is rebuilt outside the United
States, the owner or master shall submit a report of the rebuilding to the Secretary.
(2) TONNAGE.—The tonnage referred to in
paragraph (1) is—
(A) 500 gross tons as measured under section 14502 of this title; or
(B) an alternate tonnage as measured
under section 14302 of this title as prescribed
by the Secretary under section 14104 of this
title.
(3) TIMING OF SUBMISSION.—If the rebuilding
is completed in the United States, the report
shall be submitted when the rebuilding is completed. If the rebuilding is completed outside
the United States, the report shall be submitted when the vessel first arrives at a port in
the customs territory of the United States.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1507;
Pub. L. 109–241, title III, § 308, July 11, 2006, 120
Stat. 528; Pub. L. 110–181, div. C, title XXXV,
§ 3525(a)(2), (b), Jan. 28, 2008, 122 Stat. 600, 601.)
HISTORICAL AND REVISION NOTES
Revised
Section
12139(a) ......
12139(b) ......

Source (U.S. Code)
46:12120.
46 App.:883a (1st
sentence).

Source (Statutes at Large)

July 14, 1956, ch. 600, § 2 (1st
sentence), 70 Stat. 544;
Pub. L. 86–583, § 2, July 5,
1960, 74 Stat. 321; Pub. L.
104–324, title VII, § 707,
Oct. 19, 1996, 110 Stat. 3934.

In subsection (b)(1), the word ‘‘Secretary’’ is substituted for ‘‘Secretary of the Treasury’’, thereby incorporating the definition of ‘‘Secretary’’ in section
2101 of title 46. The functions of the Secretary of the
Treasury relating to the Coast Guard previously were
transferred to the Secretary of Transportation by section 6(b) of the Department of Transportation Act
(Pub. L. 89–670, Oct. 15, 1966, 80 Stat. 938). The Coast
Guard and the functions of the Secretary of Transportation relating to the Coast Guard were again transferred to the Department of Homeland Security by section 888(b) of the Homeland Security Act of 2002 (Pub.
L. 107–296, Nov. 25, 2002, 116 Stat. 2135). The words ‘‘rebuilt outside the United States’’ are substituted for
‘‘and any part of the rebuilding, including the construction of major components of the hull and superstructure of the vessel, is not effected within the
United States, its Territories (not including trust territories) or its possessions’’ because of the definition of
‘‘rebuilt’’ in section 12101, and the definition of ‘‘United
States’’ in chapter 1, of the revised title.
AMENDMENTS
2008—Pub. L. 110–181, § 3525(b), repealed Pub. L.
109–241, § 308. See 2006 Amendment note below.
Subsec. (a). Pub. L. 110–181, § 3525(a)(2), incorporated
the substance of the amendment by Pub. L. 109–241,
§ 308, into this section by substituting ‘‘charterers, and
mortgagees’’ for ‘‘and charterers’’. See 2006 Amendment

§ 12151

TITLE 46—SHIPPING

note below and section 18(a) of Pub. L. 109–304, set out
as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–241, § 308, which directed the amendment of former section 12120 of this title from which
subsec. (a) of this section was derived, was repealed by
Pub. L. 110–181, § 3525(b). See 2008 Amendment note for
subsec. (a) and Historical and Revision notes above.

SUBCHAPTER IV—PENALTIES
§ 12151. Penalties
(a) IN GENERAL.—A person that violates this
chapter or a regulation prescribed under this
chapter is liable to the United States Government for a civil penalty of not more than $10,000.
Each day of a continuing violation is a separate
violation.
(b) SEIZURE AND FORFEITURE OF VESSELS.—A
vessel and its equipment are liable to seizure by
and forfeiture to the Government if—
(1) the owner of the vessel or the representative or agent of the owner knowingly falsifies
or conceals a material fact, or knowingly
makes a false statement or representation,
about the documentation of the vessel or in
applying for documentation of the vessel;
(2) a certificate of documentation is knowingly and fraudulently used for the vessel;
(3) the vessel is operated after its endorsement has been denied or revoked under section
12152 of this title;
(4) the vessel is employed in a trade without
an appropriate endorsement;
(5) the vessel has only a recreational endorsement and is operated other than for
pleasure;
(6) the vessel is a documented vessel and is
placed under the command of a person not a
citizen of the United States, except as authorized by section 12131(b) of this title; or
(7) the vessel is rebuilt outside the United
States and a report of the rebuilding is not
submitted as required by section 12139(b) of
this title.
(c) ENGAGING IN FISHING AFTER FALSIFYING
ELIGIBILITY.—In addition to other penalties
under this section, the owner of a documented
vessel for which a fishery endorsement has been
issued is liable to the Government for a civil
penalty of not more than $100,000 for each day
the vessel engages in fishing (as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802))
within the exclusive economic zone, if the owner
or the representative or agent of the owner
knowingly falsified or concealed a material fact,
or knowingly made a false statement or representation, about the eligibility of the vessel
under section 12113(c) or (d) of this title in applying for or applying to renew the fishery endorsement.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1508.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12151(a) ......
12151(b) ......

46:12122(a).
46:12122(b).
46 App.:14 (last proviso).

Source (Statutes at Large)

R.S. § 4136 (last proviso);
Feb. 24, 1915, ch. 57, 38
Stat. 812; Pub. L. 103–182,
title VI, § 686(a)(4), Dec. 8,
1993, 107 Stat. 2220.

Page 184

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section

12151(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46 App.:883a (2d, last
sentences).

July 14, 1956, ch. 600, § 2 (2d,
last sentences), 70 Stat.
544; Pub. L. 86–583, § 2,
July 5, 1960, 74 Stat. 321.

46:12122(c).

In subsection (b), in restating 46 App. U.S.C. 883a (2d,
last sentences), the penalty of $200 for the owner and
master of the vessel is omitted because subsection (a)
provides a general civil penalty for violation of this
chapter. The authority to remit or mitigate a penalty
under section 2107(b) is omitted because section 2107(b)
applies to subtitle II and this section is in subtitle II.

§ 12152. Denial or revocation of endorsement for
non-payment of civil penalty
If the owner of a vessel fails to pay a civil penalty imposed by the Secretary, the Secretary
may deny the issuance or renewal of an endorsement, or revoke the endorsement, on a certificate of documentation issued for the vessel
under this chapter.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1508.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12152 ..........

Source (Statutes at Large)

46:12123.

CHAPTER 123—NUMBERING
UNDOCUMENTED VESSELS
Sec.

12301.
12302.
12303.
12304.
12305.
12306.
12307.
12308.
12309.

Numbering vessels.
Standard numbering system.
Exemption from numbering requirements.
Certificates of numbers.
Displaying numbers.
Safety certificates.
Regulations on numbering and fees.
Providing vessel numbering and registration
information.
Penalties.

§ 12301. Numbering vessels
(a) An undocumented vessel equipped with
propulsion machinery of any kind shall have a
number issued by the proper issuing authority
in the State in which the vessel principally is
operated.
(b) The Secretary shall require an undocumented barge more than 100 gross tons operating
on the navigable waters of the United States to
be numbered.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 590; Pub. L.
102–587, title V, § 5305, Nov. 4, 1992, 106 Stat. 5083.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

12301 ............................................

46:1466

Section 12301 requires that undocumented vessels
that are propelled by machinery be issued an identification number by the proper issuing authority in the
State in which the vessel is primarily operated.
AMENDMENTS
1992—Pub. L. 102–587 designated existing provisions as
subsec. (a) and added subsec. (b).

Page 185

§ 12306

TITLE 46—SHIPPING

§ 12302. Standard numbering system
(a) The Secretary shall prescribe by regulation
a standard numbering system for vessels to
which this chapter applies. On application by a
State, the Secretary shall approve a State numbering system that is consistent with the standard numbering system. In carrying out its numbering system, a State shall adopt any definitions of relevant terms prescribed by regulations of the Secretary.
(b) A State with an approved numbering system is the issuing authority within the meaning
of this chapter. The Secretary is the issuing authority in a State in which a State numbering
system has not been approved.
(c) When a vessel is numbered in a State, it is
deemed in compliance with the numbering system of a State in which it temporarily is operated.
(d) When a vessel is removed to a new State of
principal operation, the issuing authority of
that State shall recognize the validity of the
number issued by the original State for 60 days.
(e) If a State has a numbering system approved after the Secretary issues a number, the
State shall recognize the validity of the number
issued by the Secretary for one year.
(f) When the Secretary decides that a State
numbering system is not being carried out consistent with the standard numbering system or
the State has changed the system without the
Secretary’s approval, the Secretary may withdraw approval after giving notice to the State,
in writing, stating the reasons for the withdrawal.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 590.)
HISTORICAL AND REVISION NOTES
Revised section
12302 ............................................

Source section (U.S. Code)
46:1467

Section 12302 provides for a standard numbering system for undocumented vessels and for approval of State
numbering systems by the Secretary. It also requires
that a State, when implementing its numbering system, adopt any relevant terms required by the Secretary. In States without approved numbering systems,
the Federal Government issues the numbers. This section also provides for the operation of a vessel in a
State other than the one in which it was numbered.

§ 12303. Exemption from numbering requirements
(a) When the Secretary is the authority issuing a number under this chapter, the Secretary
may exempt a vessel or class of vessels from the
numbering requirements of this chapter under
conditions the Secretary may prescribe.
(b) When a State is the issuing authority, it
may exempt from the numbering requirements
of this chapter a vessel or class of vessels exempted under subsection (a) of this section or
otherwise as permitted by the Secretary.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12303 ............................................

Source section (U.S. Code)
46:1468

Section 12303 permits the Secretary and any State,
when it is the issuing authority, to exempt vessels from
the numbering requirements.

§ 12304. Certificates of numbers
(a) A certificate of number is granted for a
number issued under this chapter. The certificate shall be pocketsized, shall be at all times
available for inspection on the vessel for which
issued when the vessel is in operation, and may
be valid for not more than 3 years. The certificate of number for a vessel less than 26 feet in
length and leased or rented to another for the
latter’s noncommercial operation of less than 7
days may be retained on shore by the vessel’s
owner or representative at the place from which
the vessel departs or returns to the possession of
the owner or the owner’s representative. A vessel that does not have the certificate of number
on board shall be identified when in operation,
and comply with requirements, as the issuing
authority prescribes.
(b) The owner of a vessel numbered under this
chapter shall provide—
(1) the issuing authority notice of the transfer of any part of the owner’s interest in the
vessel or of the destruction or abandonment of
the vessel, within a reasonable time after the
transfer, destruction, or abandonment; and
(2) notice of a change of address within a
reasonable time of the change, as prescribed
by regulation.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12304 ............................................

Source section (U.S. Code)
46:1469

Section 12304 describes a certificate of number and
stipulates when it must be carried on board a vessel. It
also requires that the number issuing authority be notified when a boat is sold, transferred, destroyed, or
abandoned, or when the owner’s address changes.

§ 12305. Displaying numbers
A number required by this chapter shall be
painted on, or attached to, each side of the forward half of the vessel for which it was issued,
and shall be the size, color, and type as may be
prescribed by the Secretary. No other number
may be carried on the forward half of the vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12305 ............................................

Source section (U.S. Code)
46:1470

Section 12305 describes the manner in which a number
must be displayed on a vessel, and prohibits the display
of other numbers on the forward half of the vessel.

§ 12306. Safety certificates
When a State is the authority issuing a number under this chapter, it may require that the
individual in charge of a numbered vessel have a
valid safety certificate issued under conditions
set by the issuing authority, except when the
vessel is subject to manning requirements under
part F of this subtitle.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)

§ 12307

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

12306 ............................................

Source section (U.S. Code)
46:1471

Section 12306 authorizes a State that is an issuing authority to require a numbered vessel operator to hold
a valid safety certificate, unless the vessel is subject to
manning requirements under part F of this subtitle.

§ 12307. Regulations on numbering and fees
The authority issuing a number under this
chapter may prescribe regulations and establish
fees to carry out the intent of this chapter. The
fees shall apply equally to residents and nonresidents of the State. A State issuing authority
may impose only conditions for vessel numbering that are—
(1) prescribed by this chapter or regulations
of the Secretary about the standard numbering system; or
(2) related to proof of payment of State or
local taxes.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12307 ............................................

Source section (U.S. Code)
46:1472

Section 12307 provides the States or the Secretary
with the authority to prescribe regulations and establish fees for carrying out the requirements of this chapter. The fee must apply equally to residents and nonresidents of the State in which the vessel is numbered.

§ 12308. Providing vessel numbering and registration information
A person may request from an authority issuing a number under this chapter the numbering
and registration information of a vessel that is
retrievable from vessel numbering system
records of the issuing authority. When the issuing authority is satisfied that the request is reasonable and related to a boating safety purpose,
the information shall be provided on paying the
cost of retrieving and providing the information
requested.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 592.)
HISTORICAL AND REVISION NOTES
Revised section
12308 ............................................

Source section (U.S. Code)
46:1473

Section 12308 requires the number issuing authority
to supply for a fee, numbering and registration information to any person, upon request, if the request is
reasonable and related to boating safety.

§ 12309. Penalties
(a) A person willfully violating this chapter or
a regulation prescribed under this chapter shall
be fined not more than $5,000, imprisoned for not
more than one year, or both.
(b) A person violating this chapter or a regulation prescribed under this chapter is liable to
the United States Government for a civil penalty of not more than $1,000. If the violation involves the operation of a vessel, the vessel also
is liable in rem for the penalty.
(c) When a civil penalty of not more than $200
has been assessed under this chapter, the Sec-

Page 186

retary may refer the matter of collection of the
penalty directly to the United States magistrate
judge of the jurisdiction in which the person liable may be found for collection procedures under
supervision of the district court and under an
order issued by the court delegating this authority under section 636(b) of title 28.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 592; Pub. L.
101–650, title III, § 321, Dec. 1, 1990, 104 Stat. 5117.)
HISTORICAL AND REVISION NOTES
Revised section
12309(a) ........................................
12309(b) ........................................
12309(c) ........................................

Source section (U.S. Code)
46:1483
46:1484(b)
46:1484(d)

Section 12309 provides for civil and criminal penalties
for violation of the vessel numbering provisions in this
title.
CHANGE OF NAME
‘‘United States magistrate judge’’ substituted for
‘‘United States magistrate’’ in subsec. (c) pursuant to
section 321 of Pub. L. 101–650, set out as a note under
section 631 of Title 28, Judiciary and Judicial Procedure.

CHAPTER 125—VESSEL IDENTIFICATION
SYSTEM
Sec.

12501.
12502.
12503.
12504.
12505.
12506.
12507.

Establishment of a vessel identification system.
Identification numbers, signal letters, and
markings.
Information available to the system.
Information available from the system.
Fees.
Delegation of authority.
Penalties.
HISTORICAL AND REVISION NOTES

Section 101 of H.R. 3105, as amended, adds a new chapter 125 to title 46, United States Code, to establish a
vessel identification system for all vessels of the
United States. This would include vessels documented
under chapter 121 of title 46, numbered under chapter
123 of that title, or titled under the law of a State. This
new chapter consists of new sections 12501–12507 as follows.

§ 12501. Establishment of a vessel identification
system
(a) The Secretary of Transportation shall establish a vessel identification system to make
available information under section 12503 of this
title for use by the public for law enforcement
and other purposes relating to—
(1) the ownership of documented vessels;
(2) the ownership of vessels numbered under
chapter 123 of this title; and
(3) the ownership of vessels titled under the
law of a State.
(b) The vessel identification system shall include information prescribed by the Secretary
including—
(1) identifying a vessel;
(2) identifying the owner of the vessel, including—
(A) the owner’s social security number or,
if that number is not available, other means
of identification acceptable to the Secretary; or
(B) for an owner other than an individual—

Page 187

TITLE 46—SHIPPING

(i) the owner’s taxpayer identification
number; or
(ii) if the owner does not have a taxpayer
identification number, the social security
number of an individual who is a corporate
officer, general partner, or individual
trustee of the owner and who signed the
application for documentation or numbering for the vessel;
(3) identifying the State in which it is titled
or numbered;
(4) indicating whether the vessel is numbered or titled, or both;
(5) if titled in a State, indicating where evidence of a lien or other security interest may
be found against the vessel in that State; and
(6) information assisting law enforcement officials.
(c) The Secretary may maintain information
under this chapter in connection with any other
information system maintained by the Secretary.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4735; amended Pub. L. 101–225, title
III, § 302(1), Dec. 12, 1989, 103 Stat. 1922; Pub. L.
101–595, title VI, § 603(10), Nov. 16, 1990, 104 Stat.
2993.)
HISTORICAL AND REVISION NOTES
Revised section 12501
Subsection (a) of section 12501 requires the Secretary
of Transportation to establish a system of information
concerning vessels of the United States for law enforcement and other purposes. The Secretary is required to
make available information from the system relating
to the ownership of vessels documented under chapter
121 of title 46, numbered under chapter 123 of that title,
and titled under the law of a State. The information is
available under section 12503 for use by the public,
similarly under the Ship Mortgage Act, 1920.
Subsection (b) lists the vessel identification information which is required to be maintained by the Secretary. The Secretary has the authority to prescribe
other information to be maintained in addition to the
items listed. For example, the Secretary may identify
vessels issued fisheries permits by the Department of
Commerce. The Secretary may also monitor transactions involving vessels that require approval by the
Secretary under section 9 of the Shipping Act, 1916 (46
App. U.S.C. 808) before interest or control in the vessel
may be transferred to a noncitizen.
Subsection (c) clarifies that the Secretary has the
flexibility to maintain this system in connection with
any other information system maintained by the Secretary, including the Federal Aviation Administration
system containing aircraft ownership information. This
would also permit the Secretary to combine various
systems and data bases maintained by the Secretary
such as documentation and numbering of vessels, and
safety, casualty, and law enforcement statistics.
AMENDMENTS
1990—Subsec. (b)(2)(A). Pub. L. 101–595 amended subpar. (A) generally. Prior to amendment, subpar. (A)
read as follows: ‘‘the owner’s social security number;
or’’.
1989—Subsec. (b)(2). Pub. L. 101–225 amended par. (2)
generally, adding subpars. (A) and (B).
EFFECTIVE DATE
Chapter effective Jan. 1, 1989, with certain exceptions
and qualifications, see section 107 of Pub. L. 100–710, set
out as a note under section 31301 of this title.

§ 12502

RECORDS AND OTHER INFORMATION; ESTABLISHMENT,
CENTRALIZATION AND COMPUTERIZATION
Pub. L. 100–710, title I, § 104(e)(2), Nov. 23, 1988, 102
Stat. 4751, provided that: ‘‘To establish, centralize, and
computerize records and other information maintained
under chapters 121, 125, and 313 of title 46, United States
Code, from the effective date of this title [Jan. 1, 1989,
with certain exceptions and qualifications, see section
107 of Pub. L. 100–710, set out as a note under section
31301 of this title] through September 30, 1993, the Secretary of Transportation shall spend (out of amounts
appropriated for the Department of Transportation
under an appropriations law) not less than an amount
that is equal to the amounts estimated to be—
‘‘(A) collected under section 9701 of title 31, United
States Code, for fees paid for services and things of
value provided under chapter 313 of title 46, United
States Code (as enacted by section 101 of this Act),
and for documenting vessels under chapter 121 of title
46; and
‘‘(B) transferred to or collected by the Secretary
under chapter 125 of title 46, United States Code (as
enacted by section 101 of this Act).’’
PERSONNEL AND EQUIPMENT; RECRUITMENT, COMPENSATION, TRAINING, PURCHASING, OR DEPLOYMENT
Pub. L. 100–710, title I, § 104(g), Nov. 23, 1988, 102 Stat.
4751, provided that: ‘‘Nothing in this section [amending
sections 2101, 2110, 12102, 12103, 12105, 12110, 12112, 12117,
12119, and 12120 of this title and sections 808, 1242, and
1271 of the Appendix to this title, and enacting provisions set out as notes under sections 12501, 12502, and
12505 of this title] requires the Coast Guard to recruit,
compensate, train, purchase, or deploy any personnel
or equipment to carry out chapter 125 of title 46, United
States Code (as enacted by section 101 of this Act), except to the extent that appropriations are made available in an appropriations law for the Department of
Transportation.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]

§ 12502. Identification numbers, signal letters,
and markings
(a) For the identification of a vessel of the
United States, the Secretary of Transportation—
(1) shall maintain a unique numbering system and assign a number to each vessel of the
United States;
(2) may maintain a system of signal letters
for a documented vessel;
(3) shall record a name selected by the owner
of a documented vessel approved by the Secretary as the vessel’s name of record; and
(4) may establish other identification markings.
(b) The manufacturer or owner of a vessel
shall affix to the vessel and maintain in the
manner prescribed by the Secretary the number
assigned and any other markings the Secretary
may require.
(c) Once a number is assigned under this section, it may not be used by another vessel.
(d) Once a documented vessel’s name is established, the name may not be changed without
the approval of the Secretary.
(e) A person may not tamper with or falsify a
number or other marking required under this
section.

§ 12503

TITLE 46—SHIPPING

(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4736.)
HISTORICAL AND REVISION NOTES
Revised section 12502
Subsection (a) of this section requires the Secretary
to maintain a unique numbering system for vessels of
the United States. The Secretary may use existing vessel numbering systems such as the hull identification
number for this purpose, but must ensure that no two
existing vessels of the United States have the same
number. The Secretary should consider and propose the
use of a 17-digit number to implement this requirement. This subsection also requires the Secretary to
maintain a system of signal letters and to record vessel
names for documented vessels. The Secretary is authorized to establish other vessel identification markings
for vessels of the United States, such as hailing ports.
Subsections (b), (c), (d), and (e) contain other requirements and restrictions concerning vessel identification
markings.
This section consolidates the requirements of sections 12114, 12115, 12116, and 12118 of title 46. For this
reason, section 106 of this bill repeals those sections.
VESSELS NOT HAVING UNIQUE NUMBER; APPLICABILITY
OF PROVISIONS FOR NUMBER ASSIGNMENT
Pub. L. 100–710, title I, § 104(f), Nov. 23, 1988, 102 Stat.
4751, provided that: ‘‘Section 12502(a)(1) of title 46,
United States Code (as enacted by section 101 of this
Act), applies to a vessel of the United States that does
not have a unique number as prescribed by the Secretary of Transportation under that section until the
earlier of the following:
‘‘(1) the next time the vessel is documented, numbered, or titled.
‘‘(2) January 1, 1995.’’

§ 12503. Information available to the system
(a) Except as provided in subsections (b) and
(c) of this section, a State or a State’s delegate
approved by the Secretary of Transportation
may make information available to the Secretary if, in a manner and form prescribed by
the Secretary, the State—
(1) identifies the vessel;
(2) identifies the owner of the vessel, including by—
(A) the owner’s social security number or,
if that number is not available, other means
of identification acceptable to the Secretary; or
(B) for an owner other than an individual—
(i) the owner’s taxpayer identification
number; or
(ii) if the owner does not have a taxpayer
identification number, the social security
number of an individual who is a corporate
officer, general partner, or individual
trustee of the owner and who signed the
application for documentation or numbering for the vessel;
(3) identifies the State in which it is titled
or numbered;
(4) indicates whether the vessel is numbered
or titled, or both;
(5) if titled in a State, indicates where evidence of a lien or other security interest may
be found against the vessel in that State;
(6) includes information to assist law enforcement; and
(7) includes other information agreed to by
the Secretary and the State.
(b) Except as provided in subsection (c) of this
section, the Secretary also may accept informa-

Page 188

tion under conditions and in a manner and form
prescribed by the Secretary.
(c) The Secretary shall—
(1) retain information on a vessel with a preferred mortgage under section 31322(d) of this
title that is no longer titled in a State making
information available to the Secretary under
this chapter until the mortgage is discharged
or the vessel is sold; and
(2) accept information under section 31321(h)
of this title only if that information cannot be
provided to a State.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4736; amended Pub. L. 101–225, title
III, § 302(2), Dec. 12, 1989, 103 Stat. 1922; Pub. L.
101–595, title VI, § 603(10), Nov. 16, 1990, 104 Stat.
2993; Pub. L. 109–304, § 15(24), Oct. 6, 2006, 120
Stat. 1704.)
HISTORICAL AND REVISION NOTES
Revised section 12503
Subsection (a) of section 12503 allows a State or approved State delegee to make vessel identification information available to the Secretary. Participation in
the system is voluntary on the part of a State. A benefit to boat purchasers and financiers in States with approved titling systems participating in this system is
that vessel mortgages or financing instruments made
in those States are deemed to be preferred mortgages
under chapter 313 of title 46, United States Code (as
codified and enacted by this Act).
Under subsection (a), the Secretary may prescribe the
manner and form in which the information is made
available by the States. In this regard, the Committee
intends that the Secretary employ the most efficient,
up-to-date computer technology in maintaining information made available from the States to avoid duplication of effort in maintaining information and to reduce the costs of the system. In addition to the vessel
identification information made available by States
under paragraphs (1)–(6), the Secretary and a State may
agree that the State make available other information.
For example, the purpose for which a vessel is routinely used would be valuable information for the system.
The Committee intends that most of the information
in the system will become available directly and exclusively from the States to the greatest extent possible.
However, under subsection (b), the Secretary may accept information from others under conditions and in a
manner and form prescribed by the Secretary. Thus, if
the Secretary discovers a valuable and reliable source
of data that can be conveniently made available to the
system, the Secretary can approve it.
Under paragraph (c)(1), the Secretary must maintain
information on a State-titled vessel with a preferred
mortgage that moves to a nonparticipating, nontitle
State, until the mortgage is discharged or the vessel is
sold. Under paragraph (c)(2), the Secretary must accept
information submitted under section 31321 of title 46 (as
enacted by this Act) concerning a discharge of a preferred mortgage on a vessel title under State law. This
would be necessary if the vessel moves to a nonparticipating State, and information on that vessel would not
be provided to the system by that State. This subsection will allow the Secretary to keep the vessel information system current on these matters and purge
files no longer required to be maintained.
AMENDMENTS
2006—Subsec. (a). Pub. L. 109–304 substituted ‘‘delegate’’ for ‘‘delegee’’ in introductory provisions.
1990—Subsec. (a)(2)(A). Pub. L. 101–595 amended subpar. (A) generally. Prior to amendment, subpar. (A)
read as follows: ‘‘the owner’s social security number;
or’’.

Page 189

§ 12506

TITLE 46—SHIPPING

1989—Subsec. (a)(2). Pub. L. 101–225 amended par. (2)
generally, adding subpars. (A) and (B).

§ 12504. Information available from the system
For law enforcement or other purposes and
under conditions prescribed by the Secretary of
Transportation, the Secretary—
(1) shall make available information in the
vessel identification system to a State making
information available under section 12503(a) of
this title; and
(2) may make available information in the
vessel identification system to others.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4736; amended Pub. L. 101–225, title
III, § 302(3), Dec. 12, 1989, 103 Stat. 1923.)
HISTORICAL AND REVISION NOTES
Revised section 12504
This section requires that the Secretary make available information maintained in the vessel identification system to a State participating in the system for
law enforcement or other purposes. The Secretary may
make available information in the system to others,
under conditions the Secretary may prescribe. At first,
the Secretary may elect to deal only with the States.
However, the Committee firmly expects that information will be made available through computer terminals in satellite offices or direct computer access by
modem. In this manner, boating organizations or financial or documentation services could retrieve data
without paper transactions for a fee.
AMENDMENTS
1989—Pub. L. 101–225 substituted ‘‘Secretary of Transportation, the Secretary’’ for ‘‘Secretary, the Secretary
of Transportation’’.

§ 12505. Fees
(a) The Secretary of Transportation may
charge a fee under section 9701 of title 31 for providing information to or requesting information
from the vessel identification system, except
to—
(1) an agency; or
(2) a State making information available to
the Secretary under section 12503(a) of this
title.
(b) The Secretary shall deposit amounts transferred or collected under this section in the general fund of the Treasury as proprietary receipts
of the Secretary and ascribed to the vessel identification system.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4737; amended Pub. L. 101–595, title
VI, § 603(11), Nov. 16, 1990, 104 Stat. 2993.)
HISTORICAL AND REVISION NOTES
Revised section 12505
This section contains the authority for the Secretary
to charge a fee under the user charge law, 31 U.S.C.
9701, for providing information to or requesting information from the vessel identification system. Fees may
not be charged under this subsection to an agency or a
State that is participating in the vessel identification
system maintained by the Secretary.
Under subsection (b) of this section, the Secretary
may collect an annual fee of not more than $1.00 from
the owner of a vessel of the United States under 31
U.S.C. 9701 for the vessel identification system. Since
vessel owners will benefit from the vessel identification
system, such as from documentation of ownership data

and stolen vessel tracking, this fee is designed as a
maintenance charge to owners for this service. The collection of the annual fee may be delayed by the Secretary, and an agency, State, or person may be employed to collect the fee under subsection (c). The Committee expects that the Secretary will make agreements with States to collect this fee at the time of vessel registrations. The term of these registrations varies
from one to three years as permitted by chapter 123 of
title 46.
Under subsection (d) of this section, if a State is employed to collect the fee, the State may retain one-half
of the amounts collected, and must transfer the remainder to the Secretary. The amounts retained by a
State may be used to cover the costs of making vessel
identification information available to the Secretary.
This includes upgrading or establishing titling systems
as well as making improvements and other changes to
vessel numbering systems to make information available. Because States are allowed to make improvements to their vessel titling and numbering systems
with the amounts retained under this section, the costs
of those programs may decrease. This could result in a
corresponding decrease in State numbering fees and
offset vessel identification system fees paid by vessel
owners.
AMENDMENTS
1990—Subsec. (b). Pub. L. 101–595 redesignated subsec.
(e) as (b) and struck out former subsec. (b) which read
as follows: ‘‘In addition to any fee under subsection (a)
of this section, the Secretary may collect an annual fee
of not more than $1.00 from the owner of each vessel of
the United States under section 9701 of title 31 for
maintaining the vessel identification system. However,
the collection of that fee may be delayed under conditions prescribed by the Secretary.’’
Subsecs. (c), (d). Pub. L. 101–595 struck out subsecs.
(c) and (d) which read as follows:
‘‘(c) The Secretary may employ any agency, State, or
person to collect the fee established under subsection
(b) of this section.
‘‘(d) If a State is employed to collect a fee under subsection (c) of this section, the State may retain onehalf of the amounts collected. A State shall transfer
one-half of the amounts collected under subsection (b)
of this section to the Secretary.’’
Subsec. (e). Pub. L. 101–595 redesignated subsec. (e) as
(b).
Subsec. (f). Pub. L. 101–595 struck out subsec. (f)
which read as follows: ‘‘The amounts retained by a
State under this section may be used to make information available to the Secretary and to pay incremental
administrative costs.’’
ANNUAL FEE PRIOR TO JAN. 1, 1992
Pub. L. 100–710, title I, § 104(e)(1), Nov. 23, 1988, 102
Stat. 4751, provided that: ‘‘Before January 1, 1992, the
annual fee under section 12505 of title 46, United States
Code (as enacted by section 101 of this Act), is $1.00.’’

§ 12506. Delegation of authority
The Secretary of Transportation may delegate
to an agency, a State, or a qualified person the
authority to—
(1) establish and maintain the vessel identification system; and
(2) charge fees under section 12505 of this
title to a person making information available
to or requesting information from the vessel
identification system.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4737.)
HISTORICAL AND REVISION NOTES
Revised section 12506
This section allows the Secretary to delegate the authority to establish and maintain the vessel identifica-

§ 12507

TITLE 46—SHIPPING

tion system to an agency, a State, or a qualified person. The Secretary may also delegate the authority to
charge fees under section 12505 for requesting information from or making information available to the vessel identification system.

§ 12507. Penalties
(a) A person shall be fined under title 18, imprisoned for not more than 2 years, or both, if
the person with the intent to defraud—
(1) provides false information to the Secretary of Transportation or a State issuing authority regarding the identification of a vessel
under this chapter; or
(2) tampers with, removes, or falsifies the
unique vessel identification number assigned
to a vessel under section 12502 of this title.
(b) A person is liable to the United States Government for a civil penalty of not more than
$10,000 if the person—
(1) provides false information to the Secretary or a State issuing authority regarding
the identification of a vessel under this chapter;
(2) violates section 12502 of this title; or
(3) fails to comply with requirements prescribed by the Secretary under section 12505 of
this title.
(c) A vessel involved in a violation of this
chapter, or regulation under this chapter, and
its equipment, may be seized by, and forfeited
to, the Government.
(d) If a person, not an individual, is involved in
a violation of this chapter, the president or chief
executive of the person also is subject to any
penalty provided under this section.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4737.)
HISTORICAL AND REVISION NOTES
Revised section 12507
This section establishes criminal and civil penalties
for certain violations of chapter 125 of title 46 (as enacted by this Act).

PART I—STATE BOATING SAFETY PROGRAMS
CHAPTER 131—RECREATIONAL BOATING
SAFETY
Sec.

13101.
13102.
13103.
13104.
13105.
13106.
13107.
13108.
13109.
13110.

Definitions.
State recreational boating safety programs.
Program acceptance.
Allocations.
Availability of allocations.
Computation decisions about State amounts
expended.
Authorization of appropriations.
Computing amounts allocated to States and
State records requirements.
Consultation, cooperation, and regulation.
National Boating Safety Advisory Council.
HISTORICAL AND REVISION NOTES

This Chapter establishes the recreational boating
safety and facility program administered by the Coast
Guard. The general purpose is to encourage State participation in boating safety education and enforcement
activities.
AMENDMENTS
2006—Pub. L. 109–304, § 16(b)(3), Oct. 6, 2006, 120 Stat.
1705, added item 13101 and redesignated former items
13101 to 13106 as 13102 to 13107, respectively.

Page 190

1998—Pub. L. 105–178, title VII, § 7405(c)(2), June 9,
1998, 112 Stat. 488, substituted ‘‘appropriations’’ for
‘‘contract spending’’ in item 13106.
1984—Pub. L. 98–369, div. A, title X, § 1016(c)(2), July
18, 1984, 98 Stat. 1020, struck out item 13107 ‘‘National
Recreational Boating Safety and Facilities Improvement Fund’’.

§ 13101. Definitions
In this chapter:
(1) ELIGIBLE STATE.—The term ‘‘eligible
State’’ means a State that has a State recreational boating safety program accepted by
the Secretary.
(2) STATE RECREATIONAL BOATING SAFETY
PROGRAM.—The term ‘‘State recreational
boating safety program’’ means education, assistance, and enforcement activities conducted
for maritime casualty prevention, reduction,
and reporting for recreational boating.
(Pub. L. 109–304, § 16(b)(2), Oct. 6, 2006, 120 Stat.
1705.)
HISTORICAL AND REVISION NOTES
Section 16 of the bill [H.R. 1442, which became Pub. L.
109–304] moves the definitions relating to the recreational boating safety program from section
2102(a)(1) and (3) to chapter 131 because the terms only
appear in chapter 131.
Section 16 of the bill also eliminates the special definitions of ‘‘State’’ and ‘‘United States’’ in section
2102(a)(2) as including the Trust Territory of the Pacific
Islands because the Trust Territory has been terminated. See the definitions of ‘‘State’’ and ‘‘United
States’’ in section 2101, which are being moved to chapter 1 and being made applicable title-wide. Those definitions already include the Northern Mariana Islands,
the only component of the former Trust Territory still
under United States sovereignty.
PRIOR PROVISIONS
A prior section 13101 was renumbered section 13102 of
this title.

§ 13102. State recreational boating safety programs
(a) To encourage greater State participation
and uniformity in boating safety efforts, and
particularly to permit the States to assume the
greater share of boating safety education, assistance, and enforcement activities, the Secretary shall carry out a national recreational
boating safety program. Under this program, the
Secretary shall make contracts with, and allocate and distribute amounts to, eligible States
to assist them in developing, carrying out, and
financing State recreational boating safety programs.
(b) The Secretary shall establish guidelines
and standards for the program. In doing so, the
Secretary—
(1) shall consider, among other things, factors affecting recreational boating safety by
contributing to overcrowding and congestion
of waterways, such as the increasing number
of recreational vessels operating on those
waterways and their geographic distribution,
the availability and geographic distribution of
recreational boating facilities in and among
applying States, and State marine casualty
and fatality statistics for recreational vessels;
(2) shall consult with the Secretary of the
Interior to minimize duplication with the pur-

Page 191

§ 13102

TITLE 46—SHIPPING

poses and expenditures of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C.
460l–4—460l–11) the Federal Aid in Sport Fish
Restoration Act of 1950 (16 U.S.C. 777–777k),
and with the guidelines developed under those
Acts; and
(3) shall maintain environmental standards
consistent with the Coastal Zone Management
Act of 1972 (16 U.S.C. 1451–1464) and other laws
and policies of the United States intended to
safeguard the ecological and esthetic quality
of the waters and wetlands of the United
States.
(c) A State whose recreational boating safety
program has been approved by the Secretary is
eligible for allocation and distribution of
amounts under this chapter to assist that State
in developing, carrying out, and financing its
program. Matching amounts shall be allocated
and distributed among eligible States by the
Secretary as provided by section 13104 of this
title.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 592, § 13101;
Pub. L. 98–369, div. A, title X, § 1011(b), July 18,
1984, 98 Stat. 1013; Pub. L. 101–595, title III,
§ 312(a), Nov. 16, 1990, 104 Stat. 2987; renumbered
§ 13102 and amended Pub. L. 109–304, § 16(b)(1),
(c)(3), Oct. 6, 2006, 120 Stat. 1705, 1706.)
HISTORICAL AND REVISION NOTES
Revised section
13101 ............................................

Source section (U.S. Code)
46:1474

Section 13101(a) authorizes the Secretary to make
contracts with, and allocate amounts to eligible States
to assist them in carrying out their recreational boating safety and facilities improvement programs.
Subsection (b) requires the Secretary to establish
guidelines and standards for the program, and specifies
specific conditions the Secretary must consider, requires consultation with the Secretary of the Interior,
and to maintain environmental standards consistent
with the Coastal Zone Management Act.
Subsection (c) makes the States who meet the standards prescribed by the Secretary eligible for the
amounts authorized under this chapter.
REFERENCES IN TEXT
The Land and Water Conservation Fund Act of 1965,
referred to in subsec. (b)(2), is Pub. L. 88–578, Sept. 3,
1964, 78 Stat. 897, as amended, which is classified generally to part B (§ 460l–4 et seq.) of subchapter LXIX of
chapter 1 of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note
set out under section 460l–4 of Title 16 and Tables.
The Federal Aid in Sport Fish Restoration Act of
1950, referred to in subsec. (b)(2), is act Aug. 9, 1950, ch.
658, 64 Stat. 430, as amended, also known as the DingellJohnson Sport Fish Restoration Act, the Federal Aid in
Fish Restoration Act, and the Fish Restoration and
Management Projects Act, which is classified generally
to chapter 10B (§ 777 et seq.) of Title 16. For complete
classification of this Act to the Code, see Short Title
note set out under section 777 of Title 16 and Tables.
The Coastal Zone Management Act of 1972, referred to
in subsec. (b)(3), is title III of Pub. L. 89–454 as added by
Pub. L. 92–583, Oct. 27, 1972, 86 Stat. 1280, as amended,
which is classified generally to chapter 33 (§ 1451 et seq.)
of Title 16. For complete classification of this Act to
the Code, see Short Title note set out under section
1451 of Title 16 and Tables.
PRIOR PROVISIONS
A prior section 13102 was renumbered section 13103 of
this title.

AMENDMENTS
2006—Pub. L. 109–304, § 16(b)(1), renumbered section
13101 of this title as this section.
Subsec. (c). Pub. L. 109–304, § 16(c)(3), substituted
‘‘section 13104’’ for ‘‘section 13103’’.
1990—Subsec. (b)(2). Pub. L. 101–595 substituted ‘‘the
Federal Aid in Sport Fish Restoration Act of 1950 (16
U.S.C. 777–777k), and with the guidelines developed
under those Acts; and’’ for ‘‘and with the guidelines developed under that Act; and’’.
1984—Subsec. (a). Pub. L. 98–369, § 1011(b), struck out
‘‘and facility improvement’’ after ‘‘in boating safety’’,
struck out ‘‘and facilities improvement’’ in two places
after ‘‘recreational boating safety’’, and substituted
‘‘shall’’ for ‘‘may’’ in second sentence.
Subsec. (c). Pub. L. 98–369, § 1011(b)(1)(B), struck out
‘‘and facilities improvement’’ after ‘‘recreational boating safety’’.
EFFECTIVE DATE OF 1984 AMENDMENT
Pub. L. 98–369, div. A, title X, subtitle B, part I, subpart A (§§ 1010–1013), § 1013, July 18, 1984, 98 Stat. 1014,
provided that: ‘‘The amendments made by this subpart
[amending this section and sections 2102, 13102, 13103,
13105, 13106, 13108, and 13109 of this title and enacting a
provision set out as a note under this section] shall
take effect on October 1, 1984, and shall apply with respect to fiscal years beginning after September 30,
1984.’’
SURVEY OF FUEL USE BY RECREATIONAL VESSELS
Pub. L. 100–448, § 6(d), Sept. 28, 1988, 102 Stat. 1841, provided that:
‘‘(1) IN GENERAL.—The Secretary of Transportation
and the Secretary of the Interior shall jointly conduct
a survey of—
‘‘(A) the number, size, and primary uses of recreational vessels operating on the waters of the
United States; and
‘‘(B) the amount and types of fuel used by those
vessels.
‘‘(2) AUTHORIZATION OF CONTRACTS.—The Secretary of
Transportation and the Secretary of the Interior may
enter into contracts for the performance of a survey
pursuant to this subsection.
‘‘(3) REPORT.—The Secretary of the Interior and the
Secretary of Transportation shall jointly submit a report to the Speaker of the House of Representatives
and to the President pro tempore of the Senate which
describes the results of the survey conducted pursuant
to this section not later than November 15, 1992.
‘‘(4) FUNDING.—Activities under this subsection may
be carried out—
‘‘(A) using amounts available to the Secretary of
the Interior for administrative expenses under the
Act entitled ‘An Act to provide that the United
States shall aid the States in fish restoration and
management projects, and for other purposes’ (64
Stat. 430; 16 U.S.C. 777 et seq.); and
‘‘(B) subject to appropriations, using amounts
available to the Secretary of Transportation under
section 13106(a)(1) [now section 13107(a)(1)] of title 46,
United States Code (as amended by this Act).’’
CONGRESSIONAL DECLARATION OF POLICY FOR 1984
AMENDMENT
Pub. L. 98–369, div. A, title X, subtitle B, part I
(§§ 1010–1017), § 1010, July 18, 1984, 98 Stat. 1012, provided
that: ‘‘It is declared to be the policy of Congress and
the purpose of this part [enacting sections 4162 and 9504
of Title 26, Internal Revenue Code, amending this section, sections 2102, 13102, 13103, 13105, 13106, 13108, and
13109 of this title, sections 777, 777b to 777e, 777g, and
777k of Title 16, Conservation, and sections 4161 and 9503
of Title 26, repealing section 13107 of this title, and enacting provisions set out as notes under this section,
section 777 of Title 16, and sections 4161, 4162, and 9504
of Title 26] to improve recreational boating safety and
to foster greater development, use, and enjoyment of

§ 13103

TITLE 46—SHIPPING

all waters of the United States by encouraging and assisting participation by the States, the boating industry, and the boating public in activities related to increasing boating safety; by authorizing the establishment of national construction and performance standards for boats and associated equipment; by creating
more flexible authority governing the use of boats and
equipment; and by facilitating the provision of services
by the United States Coast Guard on behalf of boating
safety. It is further declared to be the policy of Congress to encourage greater and continuing uniformity
of boating laws and regulations among the States and
the Federal Government, to encourage and assist the
States in exercising their authorities in boating safety,
to foster greater cooperation and assistance between
the Federal Government and the States in administering and enforcing Federal and State laws and regulations pertaining to boating safety, and to equitably utilize taxes paid on fuel use in motor boats in a manner
which enhances boating safety.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]

§ 13103. Program acceptance
(a) The Secretary shall make a contract with,
and allocate and distribute amounts from the
Sport Fish Restoration and Boating Trust Fund
established by section 9504 of the Internal Revenue Code of 1986 (26 U.S.C. 9504) to, a State that
has an approved State recreational boating safety program, if the State demonstrates to the
Secretary’s satisfaction that—
(1) the program submitted by that State is
consistent with this chapter and chapters 61
and 123 of this title;
(2) amounts distributed will be used to develop and carry out a State recreational boating safety program containing the minimum
requirements of subsection (c) of this section;
(3) sufficient State matching amounts are
available from general State revenue, undocumented vessel numbering and license fees,
State marine fuels taxes, or from a fund constituted from the proceeds of those taxes and
established to finance a State recreational
boating safety program; and
(4) the program submitted by that State designates a State lead authority or agency that
will carry out or coordinate carrying out the
State recreational boating safety program
supported by financial assistance of the
United States Government in that State, including the requirement that the designated
State authority or agency submit required reports that are necessary and reasonable to
carry out properly and efficiently the program
and that are in the form prescribed by the Secretary.
(b) Amounts of the Government (except
amounts from sources referred to in subsection
(a)(3) of this section) may not be used to provide
a State’s share of the costs of the program described under this section. State matching
amounts committed to a program under this
chapter may not be used to constitute the
State’s share of matching amounts required by
another program of the Government.

Page 192

(c) The Secretary shall approve a State recreational boating safety program, and the program is eligible to receive amounts authorized
to be expended under section 13107 of this title,
if the program includes—
(1) a vessel numbering system approved or
carried out by the Secretary under chapter 123
of this title;
(2) a cooperative boating safety assistance
program with the Coast Guard in that State;
(3) sufficient patrol and other activity to ensure adequate enforcement of applicable State
boating safety laws and regulations;
(4) an adequate State boating safety education program, that includes the dissemination of information concerning the hazards of
operating a vessel when under the influence of
alcohol or drugs; and
(5) a system, approved by the Secretary, for
reporting marine casualties required under
section 6102 of this title.
(d) The Secretary’s approval under this section is a contractual obligation of the Government for the payment of a proportionate share
of the cost of carrying out the program.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 593, § 13102;
Pub. L. 98–369, div. A, title X, § 1011(c), July 18,
1984, 98 Stat. 1013; Pub. L. 98–557, § 7(b)(3), Oct. 30,
1984, 98 Stat. 2862; Pub. L. 99–307, § 1(17), May 19,
1986, 100 Stat. 446; Pub. L. 99–626, § 4(a), (b), Nov.
7, 1986, 100 Stat. 3505; Pub. L. 100–448, § 6(b)(3)–(5),
Sept. 28, 1988, 102 Stat. 1840; Pub. L. 101–595, title
III, § 312(b), Nov. 16, 1990, 104 Stat. 2987; Pub. L.
109–59, title X, § 10141, Aug. 10, 2005, 119 Stat.
1931; renumbered § 13103 and amended Pub. L.
109–304, §§ 15(25), 16(b)(1), (c)(4), Oct. 6, 2006, 120
Stat. 1704–1706.)
HISTORICAL AND REVISION NOTES
Revised section
13102 ............................................

Source section (U.S. Code)
46:1475

Section 13102(a) authorizes the Secretary to contract
with the States and allocate the amounts of them if
they demonstrate to the satisfaction of the Secretary
that they have a program consistent with this chapter
and chapters 61 and 123, that the amounts received will
be used to develop and carry out their recreational
boating safety and facilities improvement programs,
that they have sufficient matching amounts available
from specified revenue sources to meet the objectives
of the program, that they will submit required reports
to the Secretary to ensure continued compliance with
the objectives of this chapter.
Subsection (b) prohibits a State from using any other
funds received from the Federal Government to meet
their required State match.
Subsections (c) and (d) require the Secretary to approve a State’s recreational boating safety and facilities improvement program if the program meets the
specified requirements of this subsection.
Subsection (e) makes the approval of a State’s program a contractual obligation of the Government to
pay the Federal portion of the cost to carry out the
program.
Subsection (f) allows a State to submit a combined
boating safety and facility improvement program if it
meets the requirements of all of the objectives of both
programs.
PRIOR PROVISIONS
A prior section 13103 was renumbered section 13104 of
this title.

Page 193

§ 13104

TITLE 46—SHIPPING
AMENDMENTS

EFFECTIVE DATE OF 1984 AMENDMENT

2006—Pub. L. 109–304, § 16(b)(1), renumbered section
13102 of this title as this section.
Subsec. (a). Pub. L. 109–304, § 15(25), inserted ‘‘(26
U.S.C. 9504)’’ after ‘‘Internal Revenue Code of 1986’’.
Subsec. (c). Pub. L. 109–304, § 16(c)(4), substituted
‘‘section 13107’’ for ‘‘section 13106’’.
2005—Subsec. (a). Pub. L. 109–59 substituted ‘‘the
Sport Fish Restoration and Boating Trust Fund’’ for
‘‘the Boat Safety Account’’ in introductory provisions.
1990—Subsec. (a)(3). Pub. L. 101–595, § 312(b)(1), inserted ‘‘State’’ after ‘‘general’’.
Subsec. (c)(4). Pub. L. 101–595, § 312(b)(2), inserted ‘‘or
drugs’’ after ‘‘alcohol’’.
Subsec. (d). Pub. L. 101–595, § 312(b)(3), substituted ‘‘a
proportionate share’’ for ‘‘the proportional share’’.
1988—Subsec. (a). Pub. L. 100–448, § 6(b)(4), substituted
‘‘1986’’ for ‘‘1954.’’ in introductory provisions.
Subsec. (a)(4). Pub. L. 100–448, § 6(b)(5), amended par.
(4) generally. Prior to amendment, par. (4) read as follows: ‘‘the program submitted by that State designates
a State lead authority or agency that will carry out or
coordinate carrying out out the State recreational
boating safety program supported by financial assistance of the United States Government in that State,
including the requirement that the designated State
authority or agency submit required reports that are
necessary and reasonable to carry out properly and efficiently the program and that are in the form prescribed
by the Secretary.’’
Subsec. (b). Pub. L. 100–448, § 6(b)(3), substituted ‘‘(except amounts from’’ for ‘‘from sources (except’’.
1986—Subsec. (a). Pub. L. 99–626, § 4(a), substituted
‘‘Boat Safety Account established by section 9504 of the
Internal Revenue Code of 1954.’’ for ‘‘Fund established
under section 13107 of this title’’ in introductory provisions.
Subsec. (a)(4). Pub. L. 99–626, § 4(b), inserted ‘‘out’’
after ‘‘carrying’’.
Pub. L. 99–307 substituted ‘‘carrying out the State’’
for ‘‘carrying the State’’.
1984—Subsec. (a). Pub. L. 98–369, § 1011(c)(1), (2), in
provisions preceding par. (1) substituted ‘‘shall’’ for
‘‘may’’ and struck out ‘‘and facilities improvement’’
after ‘‘boating safety’’.
Subsec. (a)(2). Pub. L. 98–369, § 1011(c)(1), (3), struck
out ‘‘, (d), or (f)’’ after ‘‘requirements of subsection (c)’’
and struck out ‘‘and facilities improvement’’ after
‘‘boating safety’’.
Subsec. (a)(3), (4). Pub. L. 98–369, § 1011(c)(1), struck
out ‘‘and facilities improvement’’ after ‘‘boating safety’’.
Subsec. (c)(4). Pub. L. 98–557 inserted provisions relating to dissemination of information concerning the
hazards of operating a vessel when under the influence
of alcohol.
Subsecs. (d), (e). Pub. L. 98–369, § 1011(c)(4), redesignated subsec. (e) as (d). Former subsec. (d), which related to approval of a State recreational boating facilities
improvement program by the Secretary, was struck
out.
Subsec. (f). Pub. L. 98–369, § 1011(c)(4), struck out subsec. (f) which related to submission by a State to the
Secretary of a combined program for the improvement
of recreational boating safety and recreational boating
facilities.

Amendment by Pub. L. 98–369 effective Oct. 1, 1984, to
apply with respect to fiscal years beginning after Sept.
30, 1984, see section 1013 of Pub. L. 98–369, set out as a
note under section 13101 of this title.

EFFECTIVE DATE OF 2005 AMENDMENTS
From Aug. 10, 2005, to end of fiscal year 2005, subsec.
(a) of this section considered to read as immediately
before enactment of Pub. L. 109–59, see section 101(b) of
Pub. L. 109–74, set out as a note under section 777b of
Title 16, Conservation.
Amendment by Pub. L. 109–59 effective Oct. 1, 2005,
see section 10102 of Pub. L. 109–59, set out as a note
under section 777b of Title 16, Conservation.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100–448 effective Oct. 1, 1988,
see section 6(e) of Pub. L. 100–448, set out as a note
under section 777 of Title 16, Conservation.

TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 13104. Allocations
(a) The Secretary shall allocate amounts
available for allocation and distribution under
this chapter for State recreational boating safety programs as follows:
(1) One-third shall be allocated equally each
fiscal year among eligible States.
(2) One-third shall be allocated among eligible States that maintain a State vessel numbering system approved under chapter 123 of
this title and a marine casualty reporting system approved under this chapter so that the
amount allocated each fiscal year to each eligible State will be in the same ratio as the
number of vessels numbered in that State
bears to the number of vessels numbered in all
eligible States.
(3) One-third shall be allocated so that the
amount allocated each fiscal year to each eligible State will be in the same ratio as the
amount of State amounts expended by the
State for the State recreational boating safety
program during the prior fiscal year bears to
the total State amounts expended during that
fiscal year by all eligible States for State recreational boating safety programs.
(b) The amount received by a State under this
section in a fiscal year may be not more than
one-half of the total cost incurred by that State
in developing, carrying out, and financing that
State’s recreational boating safety program in
that fiscal year.
(c) The Secretary may allocate not more than
5 percent of the amounts available for allocation
and distribution in a fiscal year for national
boating safety activities of national nonprofit
public service organizations.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 594, § 13103;
Pub. L. 98–369, div. A, title X, § 1011(d), July 18,
1984, 98 Stat. 1013; Pub. L. 101–595, title III,
§ 312(c), Nov. 16, 1990, 104 Stat. 2987; renumbered
§ 13104, Pub. L. 109–304, § 16(b)(1), Oct. 6, 2006, 120
Stat. 1705.)
HISTORICAL AND REVISION NOTES
Revised section
13103 ............................................

Source section (U.S. Code)
46:1476

Section 13103 requires the Secretary to allocate the
amounts available for recreational boating safety and
facilities improvement programs according to a specific formula:
(1) 1⁄3 shall be allocated equally to each eligible
State:

§ 13105

TITLE 46—SHIPPING

(2) 1⁄3 shall be allocated to those States maintaining
an approved numbering system; and
(3) 1⁄3 shall be allocated to the State in the proportion that the State obligated in the prior fiscal year
to the total amount obligated by all of the States in
the prior fiscal year.
PRIOR PROVISIONS
A prior section 13104 was renumbered section 13105 of
this title.
AMENDMENTS
2006—Pub. L. 109–304 renumbered section 13103 of this
title as this section.
1990—Subsec. (a)(3). Pub. L. 101–595 struck out ‘‘or obligated’’ after ‘‘expended’’ in two places.
1984—Subsec. (b). Pub. L. 98–369, § 1011(d), redesignated subsec. (c) as (b), struck out ‘‘and facilities improvement’’ after ‘‘boating safety’’, and struck out
former subsec. (b) which related to allocation of
amounts for State recreational boating facilities improvement programs by the Secretary.
Subsec. (c). Pub. L. 98–369, § 1011(d)(1), redesignated
subsec. (e) as (c). Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 98–369, § 1011(d)(1), struck out subsec. (d) which provided that an allocation or distribution of amounts under this section may not be made to
a State to maintain boating facilities under that
State’s approved recreational boating safety and facilities improvement program.
Subsec. (e). Pub. L. 98–369, § 1011(d)(1), redesignated
subsec. (e) as (c).
Subsec. (f). Pub. L. 98–369, § 1011(d)(1), struck out subsec. (f) which provided that the Secretary could extend
amounts necessary to carry out this chapter but that
there was a limitation on the total amount allocable.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 effective Oct. 1, 1984, to
apply with respect to fiscal years beginning after Sept.
30, 1984, see section 1013 of Pub. L. 98–369, set out as a
note under section 13101 of this title.
PAYMENT OF ADMINISTRATIVE COSTS; RETENTION OF
AMOUNT PRIOR TO ALLOCATIONS
Pub. L. 99–640, § 7(d), Nov. 10, 1986, 100 Stat. 3548,
which related to retention of amounts appropriated for
State recreational boating safety programs prior to
making allocations for a fiscal year, was repealed by
Pub. L. 100–448, § 6(b)(1)(B), Sept. 28, 1988, 102 Stat. 1840.

§ 13105. Availability of allocations
(a)(1) Amounts allocated to a State shall be
available for obligation by that State for a period of 3 years after the date of allocation.
(2) Amounts allocated to a State that are not
obligated at the end of the 3-year period referred
to in paragraph (1) shall be withdrawn and allocated by the Secretary in addition to any other
amounts available for allocation in the fiscal
year in which they are withdrawn or the following fiscal year.
(b) Amounts available to the Secretary for
State recreational boating safety programs for a
fiscal year that have not been allocated at the
end of the fiscal year shall be allocated among
States in the next fiscal year in addition to
amounts otherwise available for allocation to
States for that next fiscal year.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 595, § 13104;
Pub. L. 99–307, § 1(18), May 19, 1986, 100 Stat. 446;
Pub. L. 102–587, title V, § 5101, Nov. 4, 1992, 106
Stat. 5070; Pub. L. 105–178, title VII, § 7405(a),
June 9, 1998, 112 Stat. 487; Pub. L. 109–59, title X,
§ 10142, Aug. 10, 2005, 119 Stat. 1931; renumbered

Page 194

§ 13105, Pub. L. 109–304, § 16(b)(1), Oct. 6, 2006, 120
Stat. 1705.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

13104 ............................................

46:1477

Section 13104 allows a State to use any of the
amounts received from the Secretary over a 3 year period. If the State does not spend the money within that
period, the amounts revert to the Secretary, who will
make the amounts available along with the amounts
available for that year.
PRIOR PROVISIONS
A prior section 13105 was renumbered section 13106 of
this title.
AMENDMENTS
2006—Pub. L. 109–304 renumbered section 13104 of this
title as this section.
2005—Subsec. (a)(1). Pub. L. 109–59, § 10142(1), substituted ‘‘3 years’’ for ‘‘2 years’’.
Subsec. (a)(2). Pub. L. 109–59, § 10142(2), substituted ‘‘3year’’ for ‘‘2-year’’.
1998—Subsec. (a)(1). Pub. L. 105–178, § 7405(a)(1), substituted ‘‘2 years’’ for ‘‘3 years’’.
Subsec. (a)(2). Pub. L. 105–178, § 7405(a)(2), substituted
‘‘2-year’’ for ‘‘3-year’’.
1992—Pub. L. 102–587 amended section generally. Prior
to amendment, section read as follows:
‘‘(a) Amounts allocated to a State shall be available
for obligation by that State for a period of 3 years after
the date of allocation. Amounts unobligated by the
State at the end of the 3 years shall be withdrawn by
the Secretary and shall be available with other
amounts to be allocated by the Secretary during that
fiscal year.
‘‘(b) Amounts available to the Secretary for State
recreational boating safety programs that have not
been allocated at the end of a fiscal year shall be carried forward as part of the total allocation of amounts
for the next fiscal year that may be expended under
this chapter.’’
1986—Subsec. (b). Pub. L. 99–307 inserted ‘‘for State
recreational boating safety programs’’ after ‘‘Secretary’’.
EFFECTIVE DATE OF 2005 AMENDMENTS
From Aug. 10, 2005, to end of fiscal year 2005, subsec.
(a) of this section considered to read as immediately
before enactment of Pub. L. 109–59, see section 101(b) of
Pub. L. 109–74, set out as a note under section 777b of
Title 16, Conservation.
Amendment by Pub. L. 109–59 effective Oct. 1, 2005,
see section 10102 of Pub. L. 109–59, set out as a note
under section 777b of Title 16, Conservation.

§ 13106. Computation
amounts expended

decisions

about

State

(a) Consistent with regulations prescribed by
the Secretary, the computation by a State of
amounts expended for the State recreational
boating safety program shall include—
(1) the acquisition, maintenance, and operating costs of land, facilities, equipment, and
supplies;
(2) personnel salaries and reimbursable expenses;
(3) the costs of training personnel;
(4) public boat safety education;
(5) the costs of carrying out the program;
and
(6) other expenses that the Secretary considers appropriate.

Page 195

TITLE 46—SHIPPING

(b) The Secretary shall decide an issue arising
out of the computation made under subsection
(a) of this section.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 596, § 13105;
Pub. L. 98–369, div. A, title X, § 1011(e), July 18,
1984, 98 Stat. 1013; Pub. L. 101–595, title III,
§ 312(c), Nov. 16, 1990, 104 Stat. 2987; renumbered
§ 13106, Pub. L. 109–304, § 16(b)(1), Oct. 6, 2006, 120
Stat. 1705.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

13105 ............................................

46:1478

Section 13105 prescribes what amounts expended or
obligated by a State will be counted toward the State’s
share. This section also authorizes the Secretary to
settle any dispute over the computations required by
this section.
PRIOR PROVISIONS
A prior section 13106 was renumbered section 13107 of
this title.
AMENDMENTS
2006—Pub. L. 109–304 renumbered section 13105 of this
title as this section.
1990—Subsec. (a). Pub. L. 101–595 struck out ‘‘or obligated’’ after ‘‘expended’’ in provisions preceding par.
(1).
1984—Subsec. (a). Pub. L. 98–369 struck out ‘‘and facilities improvement’’ after ‘‘boating safety’’ in provisions preceding par. (1).
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 effective Oct. 1, 1984, to
apply with respect to fiscal years beginning after Sept.
30, 1984, see section 1013 of Pub. L. 98–369, set out as a
note under section 13101 of this title.

§ 13107. Authorization of appropriations
(a)(1) Subject to paragraph (2) and subsection
(c), the Secretary shall expend in each fiscal
year for State recreational boating safety programs, under contracts with States under this
chapter, an amount equal to the sum of (A) the
amount made available from the Boat Safety
Account for that fiscal year under section 15 of
the Dingell-Johnson Sport Fish Restoration Act
and (B) the amount transferred to the Secretary
under subsections (a)(2) and (f) of section 4 of
the Dingell-Johnson Sport Fish Restoration Act
(16 U.S.C. 777c(a)(2) and (f)). The amount shall be
allocated as provided under section 13104 of this
title and shall be available for State recreational boating safety programs as provided
under the guidelines established under subsection (b) of this section. Amounts authorized
to be expended for State recreational boating
safety programs shall remain available until expended and are deemed to have been expended
only if an amount equal to the total amounts
authorized to be expended under this section for
the fiscal year in question and all prior fiscal
years have been obligated. Amounts previously
obligated but released by payment of a final
voucher or modification of a program acceptance shall be credited to the balance of unobligated amounts and are immediately available
for expenditure.
(2) The Secretary shall use not more than two
percent of the amount available each fiscal year

§ 13107

for State recreational boating safety programs
under this chapter to pay the costs of investigations, personnel, and activities related to administering those programs.
(b) The Secretary shall establish guidelines
prescribing the purposes for which amounts
available under this chapter for State recreational boating safety programs may be used.
Those purposes shall include—
(1) providing facilities, equipment, and supplies for boating safety education and law enforcement, including purchase, operation,
maintenance, and repair;
(2) training personnel in skills related to
boating safety and to the enforcement of boating safety laws and regulations;
(3) providing public boating safety education, including educational programs and
lectures, to the boating community and the
public school system;
(4) acquiring, constructing, or repairing public access sites used primarily by recreational
boaters;
(5) conducting boating safety inspections
and marine casualty investigations;
(6) establishing and maintaining emergency
or search and rescue facilities, and providing
emergency or search and rescue assistance;
(7) establishing and maintaining waterway
markers and other appropriate aids to navigation; and
(8) providing State recreational vessel numbering and titling programs.
(c)(1) Of the amount transferred to the Secretary under subsection (a)(2) of section 4 of the
Dingell-Johnson Sport Fish Restoration Act (16
U.S.C. 777c(a)(2)), $5,500,000 is available to the
Secretary for payment of expenses of the Coast
Guard for personnel and activities directly related to coordinating and carrying out the national recreational boating safety program
under this title, of which not less than $2,000,000
shall be available to the Secretary only to ensure compliance with chapter 43 of this title.
(2) No funds available to the Secretary under
this subsection may be used to replace funding
traditionally provided through general appropriations, nor for any purposes except those purposes authorized by this section.
(3) Amounts made available by this subsection
shall remain available during the 2 succeeding
fiscal years. Any amount that is unexpended or
unobligated at the end of the 3-year period during which it is available shall be withdrawn by
the Secretary and allocated to the States in addition to any other amounts available for allocation in the fiscal year in which they are withdrawn or the following fiscal year.
(4) The Secretary shall publish annually in the
Federal Register a detailed accounting of the
projects, programs, and activities funded under
this subsection.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 596, § 13106;
Pub. L. 98–369, div. A, title X, § 1012, July 18, 1984,
98 Stat. 1013; Pub. L. 99–626, § 4(c), Nov. 7, 1986,
100 Stat. 3505; Pub. L. 99–640, § 7(b), (c), Nov. 10,
1986, 100 Stat. 3548; Pub. L. 100–448, § 6(b)(1)(A),
(2), (6), Sept. 28, 1988, 102 Stat. 1839, 1840; Pub. L.
105–178, title VII, § 7405(b), (c)(1), June 9, 1998, 112
Stat. 487, 488; Pub. L. 108–88, § 9(c), Sept. 30, 2003,

§ 13107

TITLE 46—SHIPPING

117 Stat. 1126; Pub. L. 108–202, § 7(c), Feb. 29, 2004,
118 Stat. 484; Pub. L. 108–224, § 6(c), Apr. 30, 2004,
118 Stat. 632; Pub. L. 108–263, § 6(c), June 30, 2004,
118 Stat. 704; Pub. L. 108–280, § 6(c), July 30, 2004,
118 Stat. 882; Pub. L. 108–310, § 9(c), Sept. 30, 2004,
118 Stat. 1159; Pub. L. 109–14, § 8(c), May 31, 2005,
119 Stat. 335; Pub. L. 109–20, § 8(c), July 1, 2005,
119 Stat. 357; Pub. L. 109–35, § 8(c), July 20, 2005,
119 Stat. 390; Pub. L. 109–37, § 8(c), July 22, 2005,
119 Stat. 405; Pub. L. 109–40, § 8(c), July 28, 2005,
119 Stat. 421; Pub. L. 109–59, title X, § 10143, Aug.
10, 2005, 119 Stat. 1931; Pub. L. 109–74, title I,
§ 102, title II, § 203, Sept. 29, 2005, 119 Stat. 2030,
2032; renumbered § 13107 and amended Pub. L.
109–304, § 16(b)(1), (c)(5), Oct. 6, 2006, 120 Stat.
1705, 1706.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

13106 ............................................

46:1479

Section 13106 provides the Secretary with liquidating
contract authority in an amount equal to the revenues
received from the motor boat fuel tax. One third shall
be used for State boating safety programs, and 2⁄3 shall
be used for State facilities improvement programs. And
as provided in Section 13102(f), the approval of a State’s
program makes it a contractual obligation of the
United States Government to provide the amounts
available.
REFERENCES IN TEXT
Section 15 of the Dingell-Johnson Sport Fish Restoration Act, referred to in subsec. (a)(1), is classified to
section 777n of Title 16, Conservation.
PRIOR PROVISIONS
A prior section 13107, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 596, established the National Recreational Boating Safety and Facilities Improvement Fund, prior to
repeal by Pub. L. 98–369, div. A, title X, § 1016(c)(1), July
18, 1984, 98 Stat. 1020. See section 9504 of Title 26, Internal Revenue Code.
AMENDMENTS
2006—Pub. L. 109–304, § 16(b)(1), renumbered section
13106 of this title as this section.
Subsec. (a)(1). Pub. L. 109–304, § 16(c)(5), substituted
‘‘section 13104’’ for ‘‘section 13103’’.
2005—Subsec. (a)(1). Pub. L. 109–59, § 10143(2), as
amended by Pub. L. 109–74, § 102(2), substituted ‘‘subsections (a)(2) and (f) of section 4 of the Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 777c(a)(2) and
(f))’’ for ‘‘section 4(b) of the Act of August 9, 1950 (16
U.S.C. 777c(b))’’.
Pub. L. 109–59, § 10143(1), as amended by Pub. L. 109–74,
§ 102(1), substituted ‘‘the amount made available from
the Boat Safety Account for that fiscal year under section 15 of the Dingell-Johnson Sport Fish Restoration
Act’’ for ‘‘the amount appropriated from the Boat Safety Account for that fiscal year’’.
Subsec. (a)(2). Pub. L. 109–59, § 10143(3), struck out
‘‘not less than one percent and’’ before ‘‘not more than
two percent’’.
Subsec. (c)(1). Pub. L. 109–74, § 203, substituted
‘‘$5,000,000’’ for ‘‘$4,150,685’’ and ‘‘$2,000,000’’ for
‘‘$1,660,274’’.
Pub. L. 109–59, § 10143(4)(D), as amended by Pub. L.
109–74, § 102(3)(B), amended par. (1) as amended by Pub.
L. 109–74, § 203, by inserting ‘‘not less than’’ before
‘‘$2,000,000’’. See Effective Date of 2005 Amendments
note below.
Pub. L. 109–59, § 10143(4)(C), as amended by Pub. L.
109–74, § 102(3)(B), amended par. (1) as amended by Pub.
L. 109–74, § 203, by substituting ‘‘$5,500,000’’ for
‘‘$5,000,000’’. See Effective Date of 2005 Amendments
note below.

Page 196

Pub. L. 109–59, § 10143(4)(B), as amended by Pub. L.
109–74, § 102(3)(A), substituted ‘‘(16 U.S.C. 777c(a)(2))’’ for
‘‘(16 U.S.C. 777c(b))’’.
Pub. L. 109–59, § 10143(4)(A), substituted ‘‘Secretary
under subsection (a)(2) of section 4’’ for ‘‘Secretary of
Transportation under paragraph (5)(C) of section 4(b)’’.
Pub. L. 109–40 substituted ‘‘$4,150,685’’ for ‘‘$4,100,000’’
and ‘‘$1,660,274’’ for ‘‘$1,643,836’’.
Pub. L. 109–37 substituted ‘‘$4,100,000’’ for ‘‘$4,050,000’’
and ‘‘$1,643,836’’ for ‘‘$1,620,003’’.
Pub. L. 109–35 substituted ‘‘$4,050,000’’ for ‘‘$4,000,000’’
and ‘‘$1,620,003’’ for ‘‘$1,600,000’’.
Pub. L. 109–20 substituted ‘‘$4,000,000’’ for ‘‘$3,750,003’’
and ‘‘$1,600,000’’ for ‘‘$1,500,003’’.
Pub. L. 109–14 substituted ‘‘$3,750,003’’ for ‘‘$3,333,336’’
and ‘‘$1,500,003’’ for ‘‘$1,333,336’’.
Subsec. (c)(3). Pub. L. 109–59, § 10143(5), as amended by
Pub. L. 109–74, § 102(4), substituted ‘‘during the 2 succeeding fiscal years. Any amount that is unexpended or
unobligated at the end of the 3-year period during
which it is available shall be withdrawn by the Secretary and allocated to the States in addition to any
other amounts available for allocation in the fiscal
year in which they are withdrawn or the following fiscal year.’’ for ‘‘until expended.’’
2004—Subsec. (c). Pub. L. 108–310 amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: ‘‘Of the amount transferred to the Secretary of
Transportation under paragraph (4) of section 4(b) of
the Dingell-Johnson Sport Fish Restoration Act (16
U.S.C. 777c(b)), $5,000,000 is available to the Secretary
for payment of expenses of the Coast Guard for personnel and activities directly related to coordinating and
carrying out the national recreational boating safety
program under this title, of which $2,000,000 shall be
available to the Secretary only to ensure compliance
with chapter 43 of this title. No funds available to the
Secretary under this subsection may be used to replace
funding traditionally provided through general appropriations, nor for any purposes except those purposes
authorized by this section. Amounts made available by
this subsection shall remain available until expended.
The Secretary shall publish annually in the Federal
Register a detailed accounting of the projects, programs, and activities funded under this subsection.’’
Pub. L. 108–280 substituted ‘‘$5,000,000’’ for ‘‘$4,166,668’’
and ‘‘$2,000,000’’ for ‘‘$1,666,668’’.
Pub. L. 108–263 substituted ‘‘$4,166,668’’ for ‘‘$3,750,001’’
and ‘‘$1,666,668’’ for ‘‘$1,500,001’’.
Pub. L. 108–224 substituted ‘‘$3,750,001’’ for ‘‘$2,916,667’’
and ‘‘$1,500,001’’ for ‘‘$1,166,667’’.
Pub. L. 108–202 substituted ‘‘$2,916,667’’ for ‘‘$2,083,333’’
and ‘‘$1,166,667’’ for ‘‘$833,333’’.
2003—Subsec. (c). Pub. L. 108–88 amended first sentence generally. Prior to amendment, first sentence
read as follows: ‘‘Of the amount transferred for each
fiscal year to the Secretary of Transportation under
paragraphs (2) and (3) of section 4(b) of the Act of August 9, 1950 (16 U.S.C. 777c(b)), $5,000,000 is available to
the Secretary for payment of expenses of the Coast
Guard for personnel and activities directly related to
coordinating and carrying out the national recreational boating safety program under this title, of
which $2,000,000 shall be available to the Secretary only
to ensure compliance with chapter 43 of this title.’’
1998—Pub. L. 105–178, § 7405(c)(1), substituted ‘‘appropriations’’ for ‘‘contract spending’’ in section catchline.
Subsec. (a)(1). Pub. L. 105–178, § 7405(b)(1), substituted
‘‘Subject to paragraph (2) and subsection (c), the Secretary shall expend in each fiscal year for State recreational boating safety programs, under contracts
with States under this chapter, an amount equal to the
sum of (A) the amount appropriated from the Boat
Safety Account for that fiscal year and (B) the amount
transferred to the Secretary under section 4(b) of the
Act of August 9, 1950 (16 U.S.C. 777c(b)).’’ for ‘‘Subject
to paragraph (2), the Secretary may expend in each fiscal year, subject to amounts as are provided in appropriations laws for liquidation of contract authority, an
amount equal to 1⁄2 of the amount transferred for such

Page 197

§ 13108

TITLE 46—SHIPPING

fiscal year to the Boat Safety Account under section
9503(c)(4) of the Internal Revenue Code of 1986 (26 U.S.C.
9503(c)(4)).’’
Subsec. (a)(2). Pub. L. 105–178, § 7405(b)(2), substituted
‘‘available’’ for ‘‘appropriated’’.
Subsec. (c). Pub. L. 105–178, § 7405(b)(3), added subsec.
(c) and struck out former subsec. (c) which read as follows: ‘‘An amount equal to one-half of the amount
transferred for each fiscal year to the Boat Safety Account under section 9503(c)(4) of the Internal Revenue
Code of 1986 (26 U.S.C. 9503(c)(4)) is available to the Secretary for expenditures out of the operating expenses
account of the Coast Guard for services provided by the
Coast Guard for recreational boating safety, including
services provided by the Coast Guard Auxiliary. Expenditures for a fiscal year under this subsection shall
not exceed expenditures for the fiscal year under subsection (a). Amounts made available by this subsection
shall remain available until expended.’’
1988—Subsec. (a). Pub. L. 100–448, § 61(b)(1)(A), designated existing provisions as par. (1), added par. (2),
and amended first sentence of par. (1) generally. Prior
to amendment, first sentence read as follows: ‘‘The
Secretary may expend in each of the fiscal years 1985,
1986, 1987, and 1988, subject to amounts as are provided
in appropriations laws for liquidation of contract authority, an amount equal to one-half for Fiscal Year
1987 and two-thirds for each Fiscal Year thereafter of
the amount transferred for such fiscal year to the Boat
Safety Account under section 9503(c)(4) of the Internal
Revenue Code of 1986 (26 U.S.C. 9503(c)(4)).’’
Subsec. (c). Pub. L. 100–448, § 6(b)(2)(A), struck out
‘‘for Fiscal Year 1987 and one-third for each fiscal year
thereafter.’’ after ‘‘An amount equal to one-half’’ in
first sentence.
Pub. L. 100–448, § 6(b)(6), substituted ‘‘1986’’ for ‘‘1954’’
in first sentence.
Pub. L. 100–448, § 6(b)(2)(B), inserted after first sentence ‘‘Expenditures for a fiscal year under this subsection shall not exceed expenditures for the fiscal year
under subsection (a).’’
1986—Subsec. (a). Pub. L. 99–640, § 7(c), substituted
‘‘one-half for Fiscal Year 1987 and two-thirds for each
Fiscal Year thereafter’’ for ‘‘two-thirds’’.
Subsec. (b). Pub. L. 99–626 substituted ‘‘shall’’ for
‘‘may’’ after ‘‘Those purposes’’ in introductory provisions and substituted ‘‘and’’ for ‘‘or’’ in par. (8).
Subsec. (c). Pub. L. 99–640, § 7(b), substituted ‘‘onehalf for Fiscal Year 1987 and one-third for each Fiscal
Year thereafter.’’ for ‘‘one-third’’.
1984—Pub. L. 98–369 amended section generally and,
among other changes, struck out all references to a facilities improvement program, inserted provisions directing the Secretary to establish guidelines prescribing the purposes for which amounts available under
this chapter for State recreational safety boating programs may be used, and made available to the Secretary an amount equal to one-third of the amount
transferred for each fiscal year to the Boat Safety Account under section 9503(c)(4) of title 26 to be used for
expenditures out of the operating expenses account of
the Coast Guard for services provided by the Coast
Guard for recreational boating safety, including services provided by the Coast Guard Auxiliary.

EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 effective Oct. 1, 1984, to
apply with respect to fiscal years beginning after Sept.
30, 1984, see section 1013 of Pub. L. 98–369, set out as a
note under section 13101 of this title.
BOATING SAFETY FUND
Pub. L. 99–272, title VI, § 6001, Apr. 7, 1986, 100 Stat.
121, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100
Stat. 2095, required that one-third of the amount transferred for fiscal year 1985 to the Boat Safety Account
under former section 9503(c)(4) of Title 26, be deposited
in the general fund of the Treasury as proprietary receipts of the department in which the Coast Guard was
operating and ascribed to Coast Guard activities and
that former section 13106(a) of this title be applied with
respect to fiscal year 1985 by substituting ‘‘one-third’’
for ‘‘two-thirds’’ in the first sentence.

§ 13108. Computing amounts allocated to States
and State records requirements
(a) Amounts allocated and distributed under
section 13104 of this title shall be computed and
paid to the States as follows:
(1) During the second quarter of a fiscal year
and on the basis of computations made under
section 13106 of this title and submitted by the
States for the preceding fiscal year, the Secretary shall determine the percentage of the
amounts available to which each eligible State
is entitled for the next fiscal year.
(2) Notice of the percentage and of the dollar
amount, if it can be determined, for each
State shall be provided to the States at the
earliest practicable time.
(3) If the Secretary determines that an
amount made available to a State for a prior
fiscal year is greater or less than the amount
that should have been made available to the
State for the prior fiscal year, because of later
or more accurate State expenditure information, the amount for the current fiscal year
may be increased or decreased by the appropriate amount.

EFFECTIVE DATE OF 1988 AMENDMENT

(b) The Secretary shall schedule the payment
of amounts, consistent with the program purposes and applicable regulations prescribed by
the Secretary of the Treasury, to minimize the
time elapsing between the transfer of amounts
from the Treasury and the subsequent disbursement of the amounts by a State.
(c) The Secretary shall notify a State authority or agency that further payments will be
made to the State only when the program complies with the prescribed standards or a failure
to comply substantially with standards is corrected if the Secretary, after reasonable notice
to the designated State authority or agency,
finds that—
(1) the State recreational boating safety program submitted by the State and accepted by
the Secretary has been so changed that it no
longer complies with this chapter or standards
prescribed by regulations; or
(2) in carrying out the State recreational
boating safety program, there has been a failure to comply substantially with the standards prescribed by regulations.

Amendment by Pub. L. 100–448 effective Oct. 1, 1988,
see section 6(e) of Pub. L. 100–448, set out as a note
under section 777 of Title 16, Conservation.

(d) The Secretary shall provide for the accounting, budgeting, and other fiscal procedures
that are necessary and reasonable to carry out

EFFECTIVE DATE OF 2005 AMENDMENTS
From Aug. 10, 2005, to end of fiscal year 2005, subsecs.
(a) and (c)(1), (3) of this section considered to read as
immediately before enactment of Pub. L. 109–59, except
as provided by the amendments by section 203 of Pub.
L. 109–74, see section 101(b) of Pub. L. 109–74, set out as
a note under section 777b of Title 16, Conservation.
Amendment by Pub. L. 109–59 effective Oct. 1, 2005,
see section 10102 of Pub. L. 109–59, set out as a note
under section 777b of Title 16, Conservation.

§ 13109

TITLE 46—SHIPPING

this section properly and efficiently. Records related to amounts allocated under this chapter
shall be made available to the Secretary and the
Comptroller General to conduct audits.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 596; Pub. L.
98–369, div. A, title X, § 1011(f), July 18, 1984, 98
Stat. 1013; Pub. L. 101–595, title III, § 312(d), Nov.
16, 1990, 104 Stat. 2987; Pub. L. 104–324, title VII,
§ 746(a)(3), (4), Oct. 19, 1996, 110 Stat. 3943; Pub. L.
109–304, § 16(c)(6), Oct. 6, 2006, 120 Stat. 1706.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

13108 ............................................

46:1480

Section 13108 sets forth the manner that the Secretary shall compute the amounts to be allocated to
the States, State record requirements, and authority
for the General Accounting Office to review the records
when conducting audits.
AMENDMENTS
2006—Subsec. (a). Pub. L. 109–304 substituted ‘‘section
13104’’ for ‘‘section 13103’’ in introductory provisions
and ‘‘section 13106’’ for ‘‘section 13105’’ in par. (1).
1996—Subsec. (a)(1). Pub. L. 104–324 substituted ‘‘preceding’’ for ‘‘proceeding’’ and ‘‘Secretary’’ for
‘‘Secertary’’.
1990—Subsec. (a)(1). Pub. L. 101–595 amended par. (1)
generally. Prior to amendment, par. (1) read as follows:
‘‘During the last quarter of a fiscal year and on the
basis of computations made under section 13105 of this
title and submitted by the States, the Secretary shall
determine the percentage of the amounts available for
the next fiscal year to which each eligible State is entitled.’’
1984—Subsec. (c)(1), (2). Pub. L. 98–369 struck out ‘‘and
facilities improvement’’ after ‘‘boating safety’’.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 effective Oct. 1, 1984, to
apply with respect to fiscal years beginning after Sept.
30, 1984, see section 1013 of Pub. L. 98–369, set out as a
note under section 13101 of this title.

§ 13109. Consultation, cooperation, and regulation
(a) In carrying out responsibilities under this
chapter, the Secretary may consult with State
and local governments, public and private agencies, organizations and committees, private industry, and other persons having an interest in
boating safety.
(b) The Secretary may advise, assist, and cooperate with the States and other interested
public and private agencies in planning, developing, and carrying out boating safety programs.
Acting under section 141 of title 14, the Secretary shall ensure the fullest cooperation between the State and United States Government
authorities in promoting boating safety by making agreements and other arrangements with
States when possible. Subject to chapter 23 of
title 14, the Secretary may make available, on
request of a State, the services of members of
the Coast Guard Auxiliary to assist the State in
promoting boating safety on State waters.
(c) The Secretary may prescribe regulations to
carry out this chapter.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 597; Pub. L.
98–369, div. A, title X, § 1011(g), July 18, 1984, 98
Stat. 1013.)

Page 198
HISTORICAL AND REVISION NOTES

Revised section

Source section (U.S. Code)

13109 ............................................

46:1481

Section 13109 authorizes the Secretary to consult
with State and local governments, public and private
agencies, and any other persons that have an interest
in boating safety.
This section also authorizes the Secretary to advise
and assist the States and other public and private agencies in the planning and carrying out of their boating
safety and facilities improvement programs.
AMENDMENTS
1984—Subsec. (a). Pub. L. 98–369 struck out ‘‘and facilities improvement’’ after ‘‘boating safety’’.
Subsec. (b). Pub. L. 98–369 struck out ‘‘and facilities
improvement’’ after ‘‘and carrying out boating safety’’.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 effective Oct. 1, 1984, to
apply with respect to fiscal years beginning after Sept.
30, 1984, see section 1013 of Pub. L. 98–369, set out as a
note under section 13101 of this title.

§ 13110. National Boating Safety Advisory Council
(a) The Secretary shall establish a National
Boating Safety Advisory Council. The Council
shall consist of 21 members appointed by the
Secretary, whom the Secretary considers to
have a particular expertise, knowledge, and experience in recreational boating safety.
(b)(1) The membership of the Council shall
consist of—
(A) 7 representatives of State officials responsible for State boating safety programs;
(B) 7 representatives of recreational vessel
manufacturers and associated equipment manufacturers; and
(C) 7 representatives of national recreational
boating organizations and from the general
public, at least 5 of whom shall be representatives of national recreational boating organizations.
(2) Additional individuals from the sources referred to in paragraph (1) of this subsection may
be appointed to panels of the Council to assist
the Council in performing its duties.
(3) At least once a year, the Secretary shall
publish a notice in the Federal Register soliciting nominations for membership on the Council.
(c) In addition to the consultation required by
section 4302 of this title, the Secretary shall
consult with the Council on other major boating
safety matters related to this chapter. The
Council may make available to Congress information, advice, and recommendations that the
Council is authorized to give to the Secretary.
(d) When serving away from home or regular
place of business, the member may be allowed
travel expenses, including per diem in lieu of
subsistence as authorized by section 5703 of title
5 for individuals employed intermittently in the
Government service. A payment under this section does not make a member of the Council an
officer or employee of the United States Government for any purpose.
(e) The Council shall terminate on September
30, 2020.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 598; Pub. L.
99–626, § 3(a)(1), (b)(1), (2), Nov. 7, 1986, 100 Stat.

Page 199

§ 14101

TITLE 46—SHIPPING

3505; Pub. L. 100–448, § 20(a), Sept. 28, 1988, 102
Stat. 1846; Pub. L. 102–241, § 24, Dec. 19, 1991, 105
Stat. 2217; Pub. L. 104–324, title III, § 304(f), Oct.
19, 1996, 110 Stat. 3918; Pub. L. 107–295, title III,
§ 335, Nov. 25, 2002, 116 Stat. 2105; Pub. L. 108–293,
title IV, § 418(f), Aug. 9, 2004, 118 Stat. 1049; Pub.
L. 111–281, title VI, § 621(b), Oct. 15, 2010, 124 Stat.
2976.)
HISTORICAL AND REVISION NOTES
Revised section

rity, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]
IMPLEMENTATION OF 1986 AMENDMENT
Pub. L. 99–626, § 3(b)(3), Nov. 7, 1986, 100 Stat. 3505, provided that: ‘‘The Secretary of Transportation shall
carry out the amendments made by paragraph (2)
[amending this section] as vacancies in the membership
of the National Boating Safety Advisory Council
occur.’’

Source section (U.S. Code)

13110 ............................................

PART J—MEASUREMENT OF VESSELS

46:1482

HISTORICAL AND REVISION NOTES
Section 13110 establishes the National Boating Safety
Advisory Council, the membership of the council, and
compensation for individuals serving on the council.
This council is to be established consistent with the
Federal Advisory Committee Act (P.L. 92–463; 5 U.S.C.
App.).
AMENDMENTS
2010—Subsec. (d). Pub. L. 111–281, § 621(b)(1), struck
out first sentence which read: ‘‘When attending meetings of the Council, a member of the Council or a panel
may be paid at a rate not more than the rate for
GS–18.’’
Subsec. (e). Pub. L. 111–281, § 621(b)(2), substituted
‘‘September 30, 2020’’ for ‘‘September 30, 2010’’.
2004—Subsec. (e). Pub. L. 108–293 substituted ‘‘September 30, 2010’’ for ‘‘September 30, 2005’’.
2002—Subsec. (e). Pub. L. 107–295 substituted ‘‘September 30, 2005’’ for ‘‘September 30, 2000’’.
1996—Subsec. (e). Pub. L. 104–324 substituted ‘‘2000’’
for ‘‘1996’’.
1991—Subsec. (e). Pub. L. 102–241 substituted ‘‘1996’’
for ‘‘1991’’.
1988—Subsec. (b)(1). Pub. L. 100–448 substituted ‘‘representatives of’’ for ‘‘members from’’ wherever appearing.
1986—Subsec. (a). Pub. L. 99–626, § 3(b)(1), struck out
‘‘not more than’’ before ‘‘21 members’’ and inserted
‘‘recreational’’ after ‘‘experience in’’.
Subsec. (b)(1). Pub. L. 99–626, § 3(b)(2), amended par.
(1) generally. Prior to amendment, par. (1) read as follows: ‘‘Insofar as practical and to ensure balanced representation, the Secretary shall appoint members
equally from—
‘‘(A) State officials responsible for State boating
safety programs;
‘‘(B) recreational vessel manufacturers; and
‘‘(C) boating organizations and members of the general public.’’
Subsec. (e). Pub. L. 99–626, § 3(a)(1), added subsec. (e).
REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY
RATES
References in laws to the rates of pay for GS–16, 17,
or 18, or to maximum rates of pay under the General
Schedule, to be considered references to rates payable
under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, § 101(c)(1)]
of Pub. L. 101–509, set out in a note under section 5376
of Title 5.
IMPLEMENTATION OF 1988 AMENDMENT
Pub. L. 100–448, § 20(b), Sept. 28, 1988, 102 Stat. 1846,
provided that: ‘‘The Secretary of the department in
which the Coast Guard is operating shall carry out the
amendments made by subsection (a) [amending this
section] as vacancies in the membership of the National Boating Safety Advisory Council occur.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu-

Part J contains provisions that apply to the measurement of a vessel to determine its tonnage. Tonnage is
a measurement of a vessel’s volume and is used for
international, customs, and regulatory purposes. This
part implements the 1969 International Convention on
Tonnage Measurement of Ships and provides a framework for phasing in the international system as the
method of measuring ships domestically, to establish
uniformity in ship measurement. The availability of an
alternate domestic regulatory system of measurement
is continued so that the application of domestic laws
will be preserved in order that vessels engaged in domestic commerce will not be adversely affected.

CHAPTER 141—GENERAL
Sec.

14101.
[14102.
14103.
14104.

Definitions.
Repealed.]
Delegation of authority.
Measurement to determine application of a
law.
AMENDMENTS

1990—Pub. L. 101–595, title VI, § 603(12)(B), Nov. 16,
1990, 104 Stat. 2993, struck out item 14102 ‘‘Regulations’’.

§ 14101. Definitions
In this part—
(1) ‘‘Convention’’ means the International
Convention on Tonnage Measurement of
Ships, 1969.
(2) ‘‘existing vessel’’ means a vessel the keel
of which was laid or that was at a similar
stage of construction before July 18, 1982.
(3) ‘‘Great Lakes’’ means—
(A) the Great Lakes; and
(B) the St. Lawrence River west of—
(i) a rhumb line drawn from Cap des
Rosiers to West Point, Anticosti Island;
and
(ii) on the north side of Anticosti Island,
the meridian of longitude 63 degrees west.
(4) ‘‘vessel that engages on a foreign voyage’’
means a vessel—
(A) that arrives at a place under the jurisdiction of the United States from a place in
a foreign country;
(B) that makes a voyage between places
outside the United States;
(C) that departs from a place under the jurisdiction of the United States for a place in
a foreign country; or
(D) that makes a voyage between a place
within a territory or possession of the
United States and another place under the
jurisdiction of the United States not within
that territory or possession.

[§ 14102

TITLE 46—SHIPPING

(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1919; Pub. L. 111–281, title III, § 303(a), Oct.
15, 2010, 124 Stat. 2923.)
HISTORICAL AND REVISION NOTES
Revised section 14101
Source: International Convention on Tonnage Measurement of Ships.
Section 14101 contains definitions that are limited to
Part J—Measurement of Vessels. The source of these
definitions is the International Convention on Tonnage
Measurement of Ships in articles 2 and 4.
AMENDMENTS
2010—Par. (4). Pub. L. 111–281, § 303(a)(1), substituted
‘‘that engages’’ for ‘‘engaged’’ in introductory provisions.
Par. (4)(A). Pub. L. 111–281, § 303(a)(2), substituted
‘‘that arrives’’ for ‘‘arriving’’.
Par. (4)(B). Pub. L. 111–281, § 303(a)(3), substituted
‘‘that makes’’ for ‘‘making’’ and struck out ‘‘(except a
foreign vessel engaged on that voyage)’’ after ‘‘United
States’’.
Par. (4)(C). Pub. L. 111–281, § 303(a)(4), substituted
‘‘that departs’’ for ‘‘departing’’.
Par. (4)(D). Pub. L. 111–281, § 303(a)(5), substituted
‘‘that makes’’ for ‘‘making’’.

[§ 14102. Repealed. Pub. L. 101–595, title VI,
§ 603(12)(A), Nov. 16, 1990, 104 Stat. 2993]
Section, Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986,
100 Stat. 1919, authorized Secretary to prescribe regulations to carry out this part.

§ 14103. Delegation of authority
(a) The Secretary may delegate to a qualified
person the authority to measure a vessel and
issue an International Tonnage Certificate (1969)
or other appropriate certificate of measurement
under this part.
(b) Under regulations prescribed by the Secretary, a decision of the person delegated authority under subsection (a) of this section related to measuring a vessel or issuing a certificate may be appealed to the Secretary.
(c) For a vessel that engages on a foreign voyage, the Secretary may delegate to another
country that is a party to the Convention the
authority to measure the vessel and issue an
International Tonnage Certificate (1969) under
chapter 143 of this title.
(d) The Secretary may terminate a delegation
made under this section after giving written notice to the person.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1919; Pub. L. 111–281, title III, § 303(b), Oct.
15, 2010, 124 Stat. 2924.)
HISTORICAL AND REVISION NOTES
Revised section 14103
Source: International Convention on Tonnage Measurement of Ships.
Section 14103(a) authorizes the Secretary to delegate
to a qualified person the authority to measure a vessel
and issue an International Tonnage Certificate or other
certificate of measurement. The term ‘‘qualified person’’ means an organization that the Secretary believes
has the necessary qualifications to measure a vessel
competently, such as the American Bureau of Shipping.
The conferees intend that in section 14103 the term
‘‘qualified person’’ includes not only organizations that
the Secretary finds to be qualified to perform measurement duties, but any person as that term is defined in
section 1 of title 1, United States Code (including indi-

Page 200

viduals), that the Secretary determines qualified to
perform measurement duties. The House and Senate
conferees also agree that, where authorized, in addition
to information required by the Secretary, regulatory
tonnage should be used on all certificates and documents related to a vessel unless the owner otherwise
requests.
Section 14103(b) provides for the appeal to the Secretary of a decision made by a person that has received
delegated authority. This ensures that the Secretary
has full oversight of delegated tonnage measurement
functions.
Section 14103(c) authorizes the Secretary to delegate
to a country that is a party to the International Convention on Tonnage Measurement of Ships, 1969, the
authority to measure a vessel and issue an International Tonnage Certificate.
Section 14103(d) clarifies the Secretary’s authority to
revoke at any time and without cause a delegation of
authority to measure a vessel or issue a certificate.
This authority is given so that no delay occurs administratively in revoking a delegation wherever the Secretary decides a revocation is warranted.
AMENDMENTS
2010—Subsec. (c). Pub. L. 111–281 substituted ‘‘that engages on’’ for ‘‘intended to be engaged on’’.

§ 14104. Measurement to determine application of
a law
(a) When the application of a law of the United
States to a vessel depends on the vessel’s tonnage, the vessel shall be measured under this
part.
(b) If a statute allows for an alternate tonnage
to be prescribed under this section, the Secretary may prescribe it by regulation. Any such
regulation shall be considered to be an interpretive regulation for purposes of section 553 of
title 5. Until an alternate tonnage is prescribed,
the statutorily established tonnage shall apply
to vessels measured under chapter 143 or chapter
145 of this title.
(c) The head of each Federal agency shall ensure that regulations issued by the agency that
specify particular tonnages comply with the alternate tonnages implemented by the Secretary.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1920; Pub. L. 104–324, title VII, § 702, Oct. 19,
1996, 110 Stat. 3933.)
HISTORICAL AND REVISION NOTES
Revised section 14104
Source: Section (U.S. Code) 46 App. U.S.C. 71.
Section 14104 requires that a vessel be measured
under Part J of this subtitle when the application of a
U.S. law to the vessel depends on its tonnage.
AMENDMENTS
1996—Pub. L. 104–324 designated existing provisions as
subsec. (a) and added subsecs. (b) and (c).

CHAPTER 143—CONVENTION MEASUREMENT
Sec.

14301.
14302.
14303.
14304.
14305.
14306.
14307.

Application.
Measurement.
Tonnage Certificate.
Remeasurement.
Optional regulatory measurement.
Reciprocity for foreign vessels.
Inspection of foreign vessels.
HISTORICAL AND REVISION NOTES

Chapter 143 provides implementing legislation for the
International Convention on Tonnage Measurement of

Page 201

§ 14301

TITLE 46—SHIPPING

Ships (Convention) which came into effect in the
United States on February 10, 1983. Chapter 143, therefore, is based primarily on the Convention, not on provisions in existing U.S. law.
AMENDMENTS
2010—Pub. L. 111–281, title III, § 303(e)(3), Oct. 15, 2010,
124 Stat. 2925, substituted ‘‘Tonnage Certificate’’ for
‘‘International Tonnage Certificate (1969)’’ in item
14303.

§ 14301. Application
(a) Except as otherwise provided in this section, this chapter applies to any vessel for which
the application of an international agreement or
other law of the United States to the vessel depends on the vessel’s tonnage.
(b) This chapter does not apply to the following:
(1) a vessel of war, unless the government of
the country to which the vessel belongs elects
to measure the vessel under this chapter.
(2) a vessel of less than 24 meters (79 feet)
overall in length.
(3) a vessel of United States or Canadian registry or nationality, or a vessel operated under
the authority of the United States or Canada,
and that is operating only on the Great Lakes,
unless the owner requests.
(4) a vessel of United States registry or nationality, or one operated under the authority
of the United States (except a vessel that engages on a foreign voyage) the keel of which
was laid or that was at a similar stage of construction before January 1, 1986, unless—
(A) the owner requests; or
(B) the vessel undergoes a change that the
Secretary finds substantially affects the vessel’s gross tonnage.
(5) a barge of United States registry or nationality, or a barge operated under the authority of the United States (except a barge
that engages on a foreign voyage) unless the
owner requests.
(c) An existing vessel that has not undergone
a change that the Secretary finds substantially
affects the vessel’s gross tonnage (or a vessel to
which IMO Resolutions A.494 (XII) of November
19, 1981, A.540 (XIII) of November 17, 1983, or
A.541 (XIII) of November 17, 1983, apply) may retain its tonnages existing on July 18, 1994, for
the application of relevant requirements under
international agreements (except the Convention) and other laws of the United States. However, if the vessel undergoes a change substantially affecting its tonnage after July 18, 1994,
the vessel shall be remeasured under this chapter.
(d) This chapter does not affect an international agreement to which the United States
Government is a party that is not in conflict
with the Convention or the application of IMO
Resolutions A.494 (XII) of November 19, 1981,
A.540 (XIII) of November 17, 1983, and A.541 (XIII)
of November 17, 1983.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1920; Pub. L. 101–595, title III, § 305, Nov. 16,
1990, 104 Stat. 2985; Pub. L. 111–281, title III,
§ 303(c), Oct. 15, 2010, 124 Stat. 2924.)

HISTORICAL AND REVISION NOTES
Revised section 14301
Source: International Convention on Tonnage Measurement of Ships.
Section 14301 delineates which vessels must be measured in compliance with the standards of the Convention.
Section 14301(a) provides that a vessel must be measured under the standards of the Convention if it is documented or required by law to be documented under
chapter 121 of this subtitle or if it is engaged on a foreign voyage, unless the vessel is specifically exempted
under section 14301(b).
Section 14301(b) provides the following exemptions
from the requirement in section 14301(a) to be measured
under the Convention:
1. A vessel of war;
2. A vessel of less than 24 meters (79 feet) overall in
length (‘‘overall in length’’ is defined in section 2101);
3. A vessel that operates only on the Great Lakes
(although the owner may request that it be measured
under the Convention);
4. A vessel whose keel was laid or was at a similar
stage of construction before January 1, 1986, and is on
a domestic voyage, unless the vessel undergoes a
change that significantly changes its tonnage or the
owner requests that the vessel be measured under the
Convention; and
5. A vessel whose keel was laid or was at a similar
stage of construction before July 18, 1982, unless the
vessel undergoes a change that significantly changes
the vessel’s tonnage or the owner requests that the
vessel be measured under the Convention.
Together, subsections (b)(4) and (5) provide that, unless the owner requests measurement under the Convention, unaltered vessels built before 1986 engaging
only on domestic voyages do not have to be measured
under the Convention or use Convention measurement
for the application of any domestic laws. Further, these
subsections provide that unaltered vessels that are
built before July 18, 1982, engaging on foreign voyages
do not have to be measured under the Convention until
1994 and are not required to use Convention measurement as a basis for the application of any domestic
laws.
Section 14301(c) provides that if a vessel owner requests that the vessel be measured under the Convention, the vessel may only be remeasured under the Convention.
Section 14301(d) provides that after July 18, 1994, a
vessel whose keel was laid or was at a similar stage of
construction before July 18, 1982 may retain its regulatory tonnage for the application of requirements
under U.S. laws or international agreements, except
the International Convention on Tonnage Measurement
of Ships. However, if the vessel was not required to be
measured under the Convention, but the vessel’s owner
requested that the vessel be measured under the Convention system before July 19, 1994, or if the vessel undergoes a change affecting its tonnage, the vessel may
not use its regulatory tonnage for the application of
U.S. laws or international agreements after July 19,
1994.
Section 14301(e) provides that this chapter does not
affect any international agreement to which the United
States is a party that is not in conflict with the International Convention on Tonnage Measurement of
Ships, 1969. It further provides that this chapter does
not affect the application of the three interim schemes
of the International Maritime Organization, which are
discussed under section 14305 below.
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281, § 303(c)(1), amended
subsec. (a) generally. Prior to amendment, subsec. (a)
read as follows: ‘‘Except as otherwise provided in this
section, this chapter applies to the following:
‘‘(1) a documented vessel.
‘‘(2) a vessel that is to be documented under chapter
121 of this title.

§ 14302

TITLE 46—SHIPPING

‘‘(3) a vessel engaged on a foreign voyage.’’
Subsec. (b)(1). Pub. L. 111–281, § 303(c)(2)(A), substituted ‘‘, unless the government of the country to
which the vessel belongs elects to measure the vessel
under this chapter.’’ for period at end.
Subsec. (b)(3). Pub. L. 111–281, § 303(c)(2)(B), inserted
‘‘of United States or Canadian registry or nationality,
or a vessel operated under the authority of the United
States or Canada, and that is’’ after ‘‘a vessel’’.
Subsec. (b)(4). Pub. L. 111–281, § 303(c)(2)(C), substituted ‘‘a vessel of United States registry or nationality, or one operated under the authority of the United
States (except a vessel that engages’’ for ‘‘a vessel (except a vessel engaged’’.
Subsec. (b)(5). Pub. L. 111–281, § 303(c)(2)(F), amended
par. (5) generally. Prior to amendment, par. (5) read as
follows: ‘‘a barge (except a barge engaged on a foreign
voyage) unless the owner requests.’’
Pub. L. 111–281, § 303(c)(2)(D), (E), redesignated par. (6)
as (5) and struck out former par. (5) which read as follows: ‘‘before July 19, 1994, an existing vessel unless—
‘‘(A) the owner requests; or
‘‘(B) the vessel undergoes a change that the Secretary finds substantially affects the vessel’s gross
tonnage.’’
Subsec. (b)(6). Pub. L. 111–281, § 303(c)(2)(E), redesignated par. (6) as (5). Former par. (5) struck out.
Subsec. (c). Pub. L. 111–281, § 303(c)(5), substituted
‘‘An existing vessel that has not undergone a change
that the Secretary finds substantially affects the vessel’s gross tonnage (or a vessel to which IMO Resolutions A.494 (XII) of November 19, 1981, A.540 (XIII) of
November 17, 1983, or A.541 (XIII) of November 17, 1983,
apply)’’ for ‘‘After July 18, 1994, an existing vessel (except an existing vessel referred to in subsection
(b)(5)(A) or (B) of this section)’’.
Pub. L. 111–281, § 303(c)(3), (4), redesignated subsec. (d)
as (c) and struck out former subsec. (c) which read as
follows: ‘‘A vessel made subject to this chapter at the
request of the owner may be remeasured only as provided by this chapter.’’
Subsecs. (d), (e). Pub. L. 111–281, § 303(c)(4), redesignated subsec. (e) as (d). Former subsec. (d) redesignated
(c).
1990—Subsec. (b)(6). Pub. L. 101–595 added par. (6).
REPORT TO CONGRESS
Pub. L. 99–509, title V, § 5103(g), Oct. 21, 1986, 100 Stat.
1927, provided that: ‘‘The Secretary of Transportation
shall—
‘‘(1) before July 19, 1990, submit to Congress—
‘‘(A) a study of—
‘‘(i) the impact of applying vessel tonnage determined under chapter 143 of title 46 (as enacted
by section 5101 of this subtitle), United States
Code, in laws of the United States that contain
provisions based on tonnage, including an analysis of the number and types of vessels that would
become subject to additional laws or more stringent requirements because of that application;
and
‘‘(ii) the extent to which the tonnage thresholds
in laws of the United States whose application is
based on tonnage would have to be raised so that
additional vessels would not become subject to
those laws if their application is based on tonnage
determined under chapter 143; and
‘‘(B) a recommendation of the levels to which the
tonnage thresholds in laws of the United States
whose application is based on tonnage should be
raised if a complete conversion to the International
Convention measurement system under chapter 143
is made;
‘‘(2) in conducting the study under clause (1) of this
subsection, consult with representatives of the private sector having experience with the operation of
vessels likely to be affected by laws of the United
States whose application is based on tonnage; and
‘‘(3) before July 19, 1988, submit to Congress an interim progress report on the study conducted under
clause (1) of this subsection.’’

Page 202

§ 14302. Measurement
(a) The Secretary shall measure a vessel to
which this chapter applies in the way provided
by this chapter and the Convention.
(b) A vessel measured under this chapter may
not be required to be measured under another
law.
(c) Unless otherwise provided by law, the
measurement of a vessel under this chapter applies to a law of the United States whose applicability depends on a vessel’s tonnage, if that
law—
(1) becomes effective after July 18, 1994; or
(2) is in effect before July 19, 1994, is not enumerated in section 14305 of this title, and is
identified by the Secretary by regulation as a
law to which this chapter applies.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1921; Pub. L. 111–281, title III, § 303(d), Oct.
15, 2010, 124 Stat. 2924.)
HISTORICAL AND REVISION NOTES
Revised section 14302
Source: International Convention on Tonnage Measurement of Ships.
Section 14302(a) requires the Secretary to measure a
vessel to which this chapter applies, in the way provided by this chapter and by the Convention. Section
14302(b) provides that a vessel that is required to be
measured under this chapter can not also be required to
be measured under another law. The exception allows
the Panama Canal Commission to continue to use the
Canal measurement system for calculation of tolls.
Section 14302(c) provides that the applicability of tonnage-based laws that become effective after July 18,
1994, will be based on Convention tonnage measurements. The applicability of tonnage-based laws in effect before July 19, 1994, which are listed by the Secretary, will also be based on Convention tonnage.
Therefore, the laws that will be based on regulatory
tonnage are those not listed by the Secretary by regulation and those listed in section 14305 of this legislation.
AMENDMENTS
2010—Subsec. (b). Pub. L. 111–281 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ‘‘Except as provided in section 1602(a) of the Panama Canal Act of 1979 (22 U.S.C. 3792(a)), a vessel measured under this chapter may not be required to be
measured under another law.’’

§ 14303. Tonnage Certificate
(a) After measuring a vessel under this chapter, the Secretary shall issue, on request of the
owner, an International Tonnage Certificate
(1969) and deliver it to the owner or master of
the vessel. For a vessel to which the Convention
does not apply, the Secretary shall prescribe a
certificate to be issued as evidence of a vessel’s
measurement under this chapter.
(b) The certificate issued under this section
shall be maintained as required by the Secretary.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1921; Pub. L. 111–281, title III, § 303(e)(1),
Oct. 15, 2010, 124 Stat. 2925.)
HISTORICAL AND REVISION NOTES
Revised section 14303
Source: International Convention on Tonnage Measurement of Ships.

Page 203

§ 14305

TITLE 46—SHIPPING

Section 14303(a) requires the Secretary to issue, on
the request of the owner, an International Tonnage
Certificate after measuring a vessel under this chapter.
Section 14303(b) requires that the certificate be maintained as required by the Secretary.
AMENDMENTS
2010—Pub. L. 111–281, § 303(e)(1)(C), struck out ‘‘International’’ before ‘‘Tonnage’’ and ‘‘(1969)’’ after ‘‘Certificate’’ in section catchline.
Subsec. (a). Pub. L. 111–281, § 303(e)(1)(A), inserted at
end ‘‘For a vessel to which the Convention does not
apply, the Secretary shall prescribe a certificate to be
issued as evidence of a vessel’s measurement under this
chapter.’’
Subsec. (b). Pub. L. 111–281, § 303(e)(1)(B), inserted ‘‘issued under this section’’ after ‘‘The certificate’’.

§ 14304. Remeasurement
(a) To the extent necessary, the Secretary
shall remeasure a vessel to which this chapter
applies if—
(1) the Secretary or the owner alleges an
error in its measurement; or
(2) the vessel or the use of its space is
changed in a way that substantially affects its
tonnage.
(b) Except as provided in this chapter or section 14504 of this title, a vessel that has been
measured does not have to be remeasured to obtain another document or endorsement under
chapter 121 of this title.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1921.)
HISTORICAL AND REVISION NOTES
Revised section 14304
Source: International Convention on Tonnage Measurement of Ships.
Section 14304(a) requires the Secretary to remeasure
a vessel, to the extent necessary, if there is an alleged
error regarding its measurement or if the vessel or its
use undergoes a change substantially affecting its tonnage. The phrase ‘‘to the extent necessary’’ was included to indicate that a complete remeasurement of
the vessel may not be necessary if, for example, an
error was made in one portion of the vessel’s measurement and only that portion needs to be remeasured.
Section 14304(b) provides that except as provided in
section 14504, a vessel that has been measured does not
have to be remeasured to obtain another document or
endorsement under chapter 121 of this title.

§ 14305. Optional regulatory measurement
(a) On request of the owner of a vessel measured under this chapter that is of United States
registry or nationality, or a vessel operated
under the authority of the United States, the
Secretary also shall measure the vessel under
chapter 145 of this title. The tonnages determined under that chapter shall be used in applying—
(1) parts A, B, C, E, F, and G of this subtitle
and section 12116 of this title;
(2) section 3(d)(3) of the Longshore and Harbor Workers’ Compensation Act (33 U.S.C.
903(d)(3));
(3) section 4 of the Bridge to Bridge Radiotelephone Act (33 U.S.C. 1203(a));
(4) section 4(a)(3) of the Ports and Waterways Safety Act (33 U.S.C. 1223(a)(3));
(5) section 30506 of this title;
(6) sections 12118 and 12132 of this title;

(7) section 12139(b) of this title;
(8) sections 351, 352, 355, and 356 of the Ship
Radio Act (47 U.S.C. 351, 352, 354, and 354a);
(9) section 403 of the Commercial Fishing Industry Vessel Act (46 U.S.C. 3302 note);
(10) the Officers’ Competency Certificates
Convention, 1936, and sections 8303 and 8304 of
this title;
(11) the International Convention for the
Safety of Life at Sea as provided by IMCO Resolution A.494 (XII) of November 19, 1981;
(12) the International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers, 1978, as provided by IMO
Resolution A.540 (XIII) of November 17, 1983;
(13) the International Convention for the
Prevention of Pollution from Ships, 1973, as
modified by the Protocol of 1978 Relating to
the International Convention for the Prevention of Pollution from Ships, 1973, as provided
by IMO Resolution A.541 (XIII) of November 17,
1983;
(14) provisions of law establishing the
threshold tonnage levels at which evidence of
financial responsibility must be demonstrated;
or
(15) unless otherwise provided by law, any
other law of the United States in effect before
July 19, 1994, and not listed by the Secretary
under section 14302(c) of this title.
(b) As long as the owner of a vessel has a request in effect under subsection (a) of this section, the tonnages determined under that request shall be used in applying the other provisions of law described in subsection (a) to that
vessel.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1921; Pub. L. 109–304, § 15(26), Oct. 6, 2006,
120 Stat. 1704; Pub. L. 111–281, title III, § 303(f),
Oct. 15, 2010, 124 Stat. 2925.)
HISTORICAL AND REVISION NOTES
Revised section 14305
Source: International Convention on Tonnage Measurement of Ships.
Section 14305 requires that the Secretary measure a
vessel under chapter 145 (Regulatory Measurement) of
this title (in addition to measuring it under the Convention) at the request of the owner. For vessels that
have obtained a regulatory tonnage measurement
under this section, the Secretary is required to use the
regulatory tonnage measurement to determine the application of those laws listed in section 14305(a) and
those not listed by the Secretary by regulation, as provided in section 14302(c). It is the intent of the Committee to list in section 14305(a) certain U.S. tonnage-based
laws that would impose increased regulatory burdens
on industry if the Convention measurement were used
for applicability determinations.
Clause (1) of section 14305(a) includes the following
parts of subtitle II of title 46, U.S.C.:
Part A: General provisions (including definitions.)
Part B: Inspection and Regulation of Vessels.
Part C: Load Lines, which is enacted as part of this
legislation. Although most load line requirements are
based on vessel length, and not tonnage, a few requirements are based on tonnage. (It is only the tonnage based requirements to which this provision applies.)
Part E: Licenses, Certificates, and Merchant Mariners’ Documents.
Part F: Manning of Vessels.
Part G: Merchant Seamen Protection and Relief.

§ 14306

TITLE 46—SHIPPING

Part H: Sections 12106(c) and 12108(c) only—Identification of Vessels.
The other U.S. laws listed in clause (2) through (10) of
this section are self-explanatory. Clause (10) refers to
domestic law as well as the Officers’ Competency Certificates Convention, 1936.
In addition, three other international conventions
are listed in clauses (11) through (13): (1) the Convention for the Safety of Life at Sea, (2) the Convention on
the Standards of Training, Certification, and Watchkeeping for Seafarers, and (3) the Convention for the
Prevention of Pollution from Ships. The International
Maritime Organization has established interim
schemes which address the use of the Convention tonnage measurement system as a basis for the applicability of these three conventions. The applicable sections
of those schemes are the following:
The International Convention for the Safety of Life
at Sea: IMCO Resolution A.494 (XII) of November 19,
1981 provides ‘‘that at the request of a shipowner, the
Administration may allow a ship required to be measured under the provisions of the International Convention on Tonnage Measurement of Ships, 1969, to use the
gross tonnage measured under the national tonnage
rules which are in effect prior to the coming into force
of the 1969 Tonnage Convention, for the purpose of application of the provisions of the International Convention for the Safety of Life at Sea, such tonnage, however, shall not be shown on the 1969 Tonnage Certificate.’’ The resolution further provides that ‘‘the interim scheme shall not apply to ships the keels of
which are laid after 31 December 1985 with the following exceptions:
‘‘(a) In respect of the requirements of Regulation 3
of Chapter IV of the 1974 SOLAS Convention for ships
the keels of which are laid before 18 July 1994, the Administration may continue to apply the interim
scheme, in which case the above-mentioned entry
should be made in the Radio-telephony Certificate
only; and
‘‘(b) In respect of the regulations for cargo ships of
less than 1,600 tons gross tonnage (as measured under
national systems), the keels of which are laid after 31
December 1985, the Administration may continue to
apply the interim scheme until 18 July 1984.’’
The International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers,
1978: IMO Resolution A.540 (XIII) of November 17, 1983,
provides ‘‘that the revised interim scheme for tonnage
measurement for certain ships adopted by resolution
A.494 (XII), [described above] should also be applicable
in respect of the provision of the International Convention, and Watchkeeping for Seafarers, 1978.’’
The International Convention for the Prevention of
Pollution from Ships, 1973, as modified by the Protocol
of 1978 Relating to the International Convention for the
Prevention of Pollution from Ships, 1973: IMO Resolution A.541 (XIII) of November 17, 1983, provides that:
At the request of a shipowner, the Administration
may allow a ship of less than 400 tons gross tonnage
(measured under the previous national tonnage rules)
the keel of which is laid on or before 31 December 1985
and which is required to be measured under the provisions of the International Convention on Tonnage
Measurement of Ships, 1969, to use the gross tonnage
measured under the national tonnage rules which
were in effect prior to the coming into force of the
1969 Tonnage Convention, for the purpose of application of the provisions of MARPOL 73/78. Such tonnage, however, shall not be shown on the 1969 Tonnage Certificate.
It further provides that ‘‘the interim scheme shall
not apply to ships the keels of which are laid after 31
December 1985, except that in respect of regulations for
ships of less than 400 tons gross tonnage (as measured
under previous national rules), the keels of which are
laid after 31 December 1985, the Administration may
continue to apply the interim scheme until 18 July
1994.’’
Clause (14) provides that the regulatory measurement
system may be used to determine which vessels must

Page 204

demonstrate evidence of financial responsibility (when
such a demonstration is required by law). If it is determined that a vessel must show evidence of financial responsibility, the limits of financial responsibility are
determined using the vessel’s Convention measurement.
Clause (15) provides that the regulatory measurement
system may be used for the application of laws not
identified by the Secretary under section 14302(c).
Section 14305(b) provides that if a vessel is measured
under the regulatory tonnage measurement system for
the application of one law listed in subsection (a), it
must be measured under that system for the application of all laws listed in subsection (a).
REFERENCES IN TEXT
Section 4 of the Bridge to Bridge Radiotelephone Act
(33 U.S.C. 1203(a)), referred to in subsec. (a)(3), probably
means section 4(a) of the Vessel Bridge-to-Bridge Radiotelephone Act, which is classified to section 1203(a)
of Title 33, Navigation and Navigable Waters.
Sections 351, 352, 355, and 356 of the Ship Radio Act (47
U.S.C. 351, 352, 354, and 354a), referred to in subsec.
(a)(8), probably means sections 351, 352, 355, and 356 of
the Communications Act of 1934, June 19, 1934, ch. 652,
48 Stat. 1064, as amended, which are classified to sections 351, 352, 354, and 354a, respectively, of Title 47,
Telegraphs, Telephones, and Radiotelegraphs.
The Officers’ Competency Certificates Convention,
1936, referred to in subsec. (a)(10), is set out in 54 Stat.
Pt. 2, p. 1683.
For provisions relating to International Conventions
for the Safety of Life at Sea, referred to in subsec.
(a)(11), to which the United States has been a party, see
section 1602 of Title 33, Navigation and Navigable Waters, and notes thereunder.
For provisions relating to the International Convention for the Prevention of Pollution from Ships, as
modified, referred to in subsec. (a)(13), see chapter 33
(§ 1901 et seq.) of Title 33.
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281 substituted ‘‘vessel
measured under this chapter that is of United States
registry or nationality, or a vessel operated under the
authority of the United States,’’ for ‘‘documented vessel measured under this chapter,’’ in introductory provisions.
2006—Subsec. (a)(1). Pub. L. 109–304, § 15(26)(A), substituted ‘‘of this subtitle and section 12116’’ for ‘‘and
sections 12106(c) and 12108(c)’’.
Subsec. (a)(5). Pub. L. 109–304, § 15(26)(B), substituted
‘‘section 30506 of this title’’ for ‘‘section 4283 of the Revised Statutes of the United States (46 App. U.S.C.
183)’’.
Subsec. (a)(6). Pub. L. 109–304, § 15(26)(C), substituted
‘‘sections 12118 and 12132 of this title’’ for ‘‘sections 27
and 27A of the Act of June 5, 1920 (46 App. U.S.C. 883 and
883–1)’’.
Subsec. (a)(7). Pub. L. 109–304, § 15(26)(D), substituted
‘‘section 12139(b) of this title’’ for ‘‘Act of July 14, 1956
(46 App. U.S.C. 883a)’’.

§ 14306. Reciprocity for foreign vessels
(a) When the Secretary finds that the laws and
regulations of a foreign country related to measurement of vessels are similar to those of this
chapter and the regulations prescribed under
this chapter, or when a foreign country is a
party to the Convention, the Secretary shall accept the measurement and certificate of a vessel
of that foreign country as complying with this
chapter and the regulations prescribed under
this chapter.
(b) Subsection (a) of this section does not
apply to a vessel of a foreign country that does
not recognize measurements under this chapter.

Page 205

§ 14501

TITLE 46—SHIPPING

Revised section 14306
Source: International Convention on Tonnage Measurement of Ships. Section (U.S. Code) 46 App. U.S.C. 81.
Section 14306(a) requires that the Secretary accept
the measurement and certificate of a vessel of a foreign
country as evidence of compliance with this chapter
when the Secretary finds that the laws and regulations
of that foreign country that are related to measurement are similar to those of this chapter, or that that
country is a party to the Convention.
Section 14306(b) provides that the Secretary does not
have to accept the measurement and certificate of a
vessel of a country that does not recognize United
States measurements. It also authorizes the Secretary
to apply appropriate measurement standards to such
foreign vessels, subject to international agreements to
which the United States is a party.

an International Tonnage Certificate and that the main
characteristics of the vessel correspond to the information in the certificate. Section 14307(a) also authorizes
the Secretary to inspect a vessel from a foreign country that is not a party to the Convention in order to
verify that the vessel has been measured under laws
and regulations similar to those of this chapter.
Section 14307(b) requires that if the Secretary inspects a vessel of a country that is a party to the Convention and finds that the vessel does not have an
International Tonnage Certificate or that the main
characteristics of the vessel differ from those stated on
the certificate or other records in a way that increases
the gross or net tonnage of the vessel, the Secretary
must inform the country whose flag the vessel is flying.
Section 14307(c) provides that if the Secretary finds
that a vessel of a country not a party to the Convention has been measured under laws and regulations
similar to those of this chapter, that the vessel shall be
deemed to have been issued an International Tonnage
Certificate. It also provides that the Secretary may
measure the vessel if the Secretary finds that the vessel has not been measured under laws and regulations
similar to those of this chapter.
Section 14307(d) provides that an inspection under
this section shall be conducted in a way that does not
delay a vessel of a country that is a party to the Convention.

§ 14307. Inspection of foreign vessels

CHAPTER 145—REGULATORY MEASUREMENT

The Secretary may apply measurement standards the Secretary considers appropriate to the
vessel, subject to applicable international agreements to which the United States Government
is a party.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1922.)
HISTORICAL AND REVISION NOTES

(a) The Secretary may inspect a vessel of a
foreign country to verify that—
(1) the vessel has an International Tonnage
Certificate (1969) and the main characteristics
of the vessel correspond to the information in
the certificate; or
(2) if the vessel is from a country not a party
to the Convention, the vessel has been measured under laws and regulations similar to
those of this chapter and the regulations prescribed under this chapter.
(b) For a vessel of a country that is a party to
the Convention, if the inspection reveals that
the vessel does not have an International Tonnage Certificate (1969) or that the main characteristics of the vessel differ from those stated on
the certificate or other records in a way that increases the gross or net tonnage of the vessel,
the Secretary promptly shall inform the country whose flag the vessel is flying.
(c) For a vessel of a country not a party to the
Convention—
(1) if the vessel has been measured under
laws and regulations that the Secretary finds
are similar to those of this chapter and the
regulations prescribed under this chapter, the
vessel shall be deemed to have been issued an
International Tonnage Certificate (1969); and
(2) if the vessel has not been measured as described in clause (1) of this subsection, the
Secretary may measure the vessel.
(d) An inspection under this section shall be
conducted in a way that does not delay a vessel
of a country that is a party to the Convention.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1922.)
HISTORICAL AND REVISION NOTES
Revised section 14307
Source: International Convention on Tonnage Measurement of Ships.
Section 14307(a) authorizes the Secretary to inspect a
vessel of a foreign country to verify that the vessel has

SUBCHAPTER I—GENERAL
Sec.

14501.
14502.
14503.
14504.

Application.
Measurement.
Certificate of measurement.
Remeasurement.
SUBCHAPTER II—FORMAL SYSTEMS

14511.
14512.
14513.
14514.

Application.
Standard tonnage measurement.
Dual tonnage measurement.
Reciprocity for foreign vessels.
SUBCHAPTER III—SIMPLIFIED SYSTEM

14521.
14522.

Application.
Measurement.
HISTORICAL AND REVISION NOTES

This chapter provides for the measurement of vessels
for the purpose of the application of domestic laws.
AMENDMENTS
2010—Pub. L. 111–281, title III, § 303(j), Oct. 15, 2010, 124
Stat. 2926, added item 14514.

SUBCHAPTER I—GENERAL
HISTORICAL AND REVISION NOTES
This subchapter contains the general provisions for
implementing regulatory measurement systems.

§ 14501. Application
This chapter applies to the following:
(1) A vessel not measured under chapter 143
of this title if the application of an international agreement or other law of the United
States to the vessel depends on the vessel’s
tonnage.
(2) A vessel measured under chapter 143 of
this title if the owner requests that the vessel
also be measured under this chapter as provided in section 14305 of this title.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1923; Pub. L. 111–281, title III, § 303(g), Oct.
15, 2010, 124 Stat. 2925.)

§ 14502

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised section 14501
Source: Section (U.S. Code) 46 App. U.S.C. 71.
Section 14501 delineates the vessels that must be
measured under this chapter, i.e. under the regulatory
tonnage measurement system. Section 14501(1) states
that a vessel must be measured under this chapter if
the vessel has not been measured under the International Convention on Tonnage Measurement of
Ships, and if the vessel is to be documented as a vessel
of the United States under chapter 121 of this subtitle,
or if the application of a United States law depends on
the vessels tonnage. Section 14501(2) states that a vessel must be measured under the regulatory measurement system if the owner requests.
AMENDMENTS
2010—Par. (1). Pub. L. 111–281, § 303(g)(1), amended par.
(1) generally. Prior to amendment, par. (1) read as follows: ‘‘a vessel not measured under chapter 143 of this
title if—
‘‘(A) the vessel is to be documented under chapter
121 of this title; or
‘‘(B) the application of a law of the United States
to the vessel depends on the vessel’s tonnage.’’
Par. (2). Pub. L. 111–281, § 303(g)(2), substituted ‘‘A vessel’’ for ‘‘a vessel’’.

§ 14502. Measurement
The Secretary shall measure a vessel to which
this chapter applies in the way provided by this
chapter.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1923.)
HISTORICAL AND REVISION NOTES
Revised section 14502
Source: Section (U.S. Code) 46 App. U.S.C. 71, 77, 83.
Section 14502 requires the Secretary to measure a
vessel to which this chapter applies as provided by this
chapter.

§ 14503. Certificate of measurement
(a) The Secretary shall prescribe the certificate to be issued as evidence of a vessel’s measurement under this chapter.
(b) The certificate shall be maintained as required by the Secretary.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1923; Pub. L. 111–281, title III, § 303(e)(2),
Oct. 15, 2010, 124 Stat. 2925.)
HISTORICAL AND REVISION NOTES
Revised section 14503
Source: Section (U.S. Code) 46 App. U.S.C. 72.
Section 14503 requires the Secretary to issue a certificate, in a manner that is to be prescribed by the Secretary, as evidence of a vessel’s regulatory measurement.
AMENDMENTS
2010—Pub. L. 111–281 designated existing provisions as
subsec. (a) and added subsec. (b).

§ 14504. Remeasurement
(a) To the extent necessary, the Secretary
shall remeasure a vessel to which this chapter
applies if—
(1) the Secretary or the owner alleges an
error in its measurement;
(2) the vessel or the use of its space is
changed in a way that substantially affects its
tonnage;

Page 206

(3) after being measured under subchapter
III of this chapter, the vessel becomes subject
to subchapter II of this chapter because the
vessel or its use is changed; or
(4) although not required to be measured
under subchapter II of this chapter, the vessel
was measured under subchapter II and the
owner requests that the vessel be measured
under subchapter III of this chapter.
(b) Except as provided in this section and
chapter 143 of this title, a vessel that has been
measured does not have to be remeasured to obtain another document or endorsement under
chapter 121 of this title.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1923.)
HISTORICAL AND REVISION NOTES
Revised section 14504
Source: Section (U.S. Code) 46 App. U.S.C. 71.
Section 14504(a) provides that the Secretary shall remeasure a vessel that has been measured under the regulatory measurement system if either the Secretary or
the owner alleges an error in its measurement; if the
vessel, or its use, undergoes a substantial change affecting its tonnage; if the vessel loses its eligibility for
measurement under the simplified system because of a
change in the vessel or its use; or if the vessel owner requests that the vessel be measured under the simplified
system after having been measured under the standard
regulatory measurement system. Section 14504(b) provides that a vessel that has been measured does not
have to be remeasured to obtain another document or
endorsement under chapter 121—‘‘Documentation of
Vessels’’—except as provided above or in chapter 143 of
this subtitle.

SUBCHAPTER II—FORMAL SYSTEMS
HISTORICAL AND REVISION NOTES
This subchapter provides for the standard regulatory
measurement of vessels for vessels that do not qualify
for the simplified measurement systems.

§ 14511. Application
This subchapter applies to a vessel described
in section 14501 of this title if—
(1) the owner requests; or
(2) the vessel is—
(A) self-propelled;
(B) at least 24 meters (79 feet) overall in
length; and
(C) not operated only for pleasure.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1924.)
HISTORICAL AND REVISION NOTES
Revised section 14511
Source: Section (U.S. Code) 46 App. U.S.C. 71.
Section 14511 lists the types of vessels that are to be
measured under the standard regulatory measurement
system. They are vessels for which the owner requests
a standard measurement or vessels which are self-propelled, at least 79 feet in length, and not operated only
for pleasure.

§ 14512. Standard tonnage measurement
(a) The Secretary shall prescribe regulations
for measuring the gross and net tonnages of a
vessel under this subchapter. The regulations
shall provide for tonnages comparable to the
tonnages that could have been assigned under

Page 207

§ 14522

TITLE 46—SHIPPING

sections 4151 and 4153 of the Revised Statutes of
the United States, as sections 4151 and 4153 existed immediately before the enactment of this
section.
(b) On application of the owner or master of a
vessel of the United States used in foreign trade,
the Secretary may attach an appendix to the
vessel’s register stating the measurement of
spaces that may be deducted from gross tonnage
under laws and regulations of other countries
but not under those of the United States.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1924.)
HISTORICAL AND REVISION NOTES
Revised section 14512
Source: Section (U.S. Code) 46 App. U.S.C. 75, 77.
Section 14512(a) requires the Secretary to prescribe
regulations for regulatory measurement systems. It
further provides that the regulations must allow for
the determination of tonnages similar to those that
could have been found under the existing law (46 App.
U.S.C. 75 & 77).
Section 14512(b) authorizes the Secretary to attach an
appendix to a vessel’s register stating the measurement
of spaces that may be deducted from the gross tonnage
under laws and regulations of other countries but not
under the laws of the United States.
REFERENCES IN TEXT
Sections 4151 and 4153 of the Revised Statutes, referred to in subsec. (a), were classified to sections 75
and 77, respectively, of the former Appendix to this
title and were repealed by Pub. L. 99–509, title V,
§ 5104(b), Oct. 21, 1986, 100 Stat. 1928.

§ 14513. Dual tonnage measurement

retary to prescribe the design, location and dimensions
of the tonnage mark to be placed on the vessel. Section
14513 further provides that if spaces are excluded by the
Secretary, they shall be comparable to those the Secretary could have excluded in existing law (46 App.
U.S.C. 83a). Section 14513(c) provides that if a vessel’s
tonnage mark is below the uppermost part of the load
line mark, each certificate that states the vessel’s tonnages must state the gross and net tonnages when the
mark is submerged and when it is not submerged.
REFERENCES IN TEXT
Section 2 of the Act of September 29, 1965, referred to
in subsec. (a), was classified to section 83a of the former
Appendix to this title and was repealed by Pub. L.
99–509, title V, § 5104(b), Oct. 21, 1986, 100 Stat. 1928.
AMENDMENTS
2010—Subsec. (c)(1). Pub. L. 111–281, § 303(h)(1), substituted ‘‘vessel is assigned two sets of gross and net
tonnages under this section,’’ for ‘‘vessel’s tonnage
mark is below the uppermost part of the load line
marks,’’ and inserted ‘‘vessel’s tonnage’’ before ‘‘mark
is submerged’’.
Subsec. (c)(2). Pub. L. 111–281, § 303(h)(2), substituted
‘‘as assigned under this section.’’ for period at end.

§ 14514. Reciprocity for foreign vessels
For a foreign vessel not measured under chapter 143, if the Secretary finds that the laws and
regulations of a foreign country related to measurement of vessels are substantially similar to
those of this chapter and the regulations prescribed under this chapter, the Secretary may
accept the measurement and certificate of a vessel of that foreign country as complying with
this chapter and the regulations prescribed
under this chapter.

(a) On application by the owner and approval
by the Secretary, the tonnage of spaces prescribed by the Secretary may be excluded in
measuring under this section the gross tonnage
of a vessel measured under section 14512 of this
title. The spaces prescribed by the Secretary
shall be comparable to the spaces that could
have been excluded under section 2 of the Act of
September 29, 1965 (Public Law 89–219, 79 Stat.
891), as section 2 existed immediately before the
enactment of this section.
(b) The Secretary shall prescribe the design,
location, and dimensions of the tonnage mark to
be placed on a vessel measured under this section.
(c)(1) If a vessel is assigned two sets of gross
and net tonnages under this section, each certificate stating the vessel’s tonnages shall state
the gross and net tonnages when the vessel’s
tonnage mark is submerged and when it is not
submerged.
(2) Except as provided in paragraph (1) of this
subsection, a certificate stating a vessel’s tonnages may state only one set of gross and net
tonnages as assigned under this section.

(Added Pub. L. 111–281, title III, § 303(i), Oct. 15,
2010, 124 Stat. 2925.)

(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1924; Pub. L. 111–281, title III, § 303(h), Oct.
15, 2010, 124 Stat. 2925.)

§ 14522. Measurement

HISTORICAL AND REVISION NOTES
Revised section 14513
Source: Section (U.S. Code) 46 App. U.S.C. 83 to 83g.
Section 14513 gives discretionary authority to the
Secretary to exclude certain spaces in measuring the
regulatory tonnage of a vessel, and requires the Sec-

SUBCHAPTER III—SIMPLIFIED SYSTEM
HISTORICAL AND REVISION NOTES
This subchapter provides for a simplified regulatory
measurement of vessels that are either non-self-propelled, under 79′ in length, or operated only for pleasure.

§ 14521. Application
This subchapter applies to a vessel described
in section 14501 of this title that is not measured
under subchapter II of this chapter.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1925.)
HISTORICAL AND REVISION NOTES
Revised section 14521
Source: Section (U.S. Code) 46 App. U.S.C. 71.
Section 14521 provides that vessels that are to be
measured under the regulatory measurement system in
this chapter, but are not measured under the standard
regulatory measurement system in subchapter II, shall
be measured under the simplified measurement system.

(a) In this section, ‘‘length’’ means the horizontal distance of the hull between the foremost
part of the stem and the aftermost part of the
stern, excluding fittings and attachments.
(b)(1) The Secretary shall assign gross and net
tonnages to a vessel based on its length,
breadth, depth, other dimensions, and appropriate coefficients.

§ 14701

TITLE 46—SHIPPING

(2) The Secretary shall prescribe the way dimensions (except length) are measured and
which coefficients are appropriate.
(c) The resulting gross tonnages, taken as a
group, reasonably shall reflect the relative internal volumes of the vessels measured under
this subchapter. The resulting net tonnages
shall be in approximately the same ratios to
corresponding gross tonnages as are the net and
gross tonnages of comparable vessels measured
under subchapter II of this chapter.
(d) Under regulations prescribed by the Secretary, the Secretary may determine the gross
and net tonnages of a vessel representative of a
designated class, model, or type, and then assign
those gross and net tonnages to other vessels of
the same class, model, or type.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1925.)
HISTORICAL AND REVISION NOTES
Revised section 14522
Source: Section (U.S. Code) 46 App. U.S.C. 71.
Section 14522(a) defines the term ‘‘length’’ as it is
used in the simplified measurement system.
Section 14522(b) requires the Secretary to assign
gross and net tonnages under the simplified system,
based on a vessel’s length, breadth, depth, other dimensions and appropriate coefficients, as the Secretary
deems appropriate.
Section 14522(c) provides that the gross tonnages as
measured under this section shall reflect the relative
internal volumes of vessels. It provides further that the
net tonnages measured under this section shall be in
approximately the same ratio to corresponding gross
tonnages as are the net and gross tonnages of comparable vessels measured under the standard regulatory
measurement system.

Page 208

ment or representation is required by this part
or a regulation prescribed under this part is liable to the United States Government for a civil
penalty of not more than $20,000 for each false
statement or representation. The vessel also is
liable in rem for the penalty.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1925.)
HISTORICAL AND REVISION NOTES
Revised section 14702
Source: Section (U.S. Code) 46 App. U.S.C. 83i.
Section 14702 provides that a person knowingly making a false statement or representation in a matter in
which a statement or representation is required by this
part or a regulation prescribed under this part is liable
to the United States Government for a civil penalty of
not more than $20,000 for each false statement or representation. It further provides that the vessel is liable
in rem for the penalty. This penalty is increased from
$1,000 in existing law and conforms with the level of
similar penalties throughout the subtitle.

Subtitle III—Maritime Liability
Chapter

301.
303.
305.
307.
309.
311.
313.

Sec.

General Liability Provisions ............
Death on the High Seas .....................
Exoneration and Limitation of Liability ..................................................
Liability of Water Carriers ...............
Suits in Admiralty Against the
United States ....................................
Suits Involving Public Vessels .........
Commercial Instruments and Maritime Liens ..........................................

30101
30301
30501
30701
30901
31101
31301

AMENDMENTS

CHAPTER 147—PENALTIES
Sec.

14701.
14702.

General violation.
False statements.
HISTORICAL AND REVISION NOTES

This chapter provides for penalties for violations of
Part J—Measurement of Vessels.

2006—Pub. L. 109–304, § 6(a), Oct. 6, 2006, 120 Stat. 1509,
amended subtitle analysis generally, substituting
‘‘General Liability Provisions’’ for ‘‘General’’ in item
for chapter 301, striking out ‘‘[Chapters 303–311—Reserved]’’ after item for chapter 301, adding items for
chapters 303, 305, 307, 309, and 311, and striking out
‘‘[Chapter 315—Reserved]’’ after item for chapter 313.

CHAPTER 301—GENERAL LIABILITY
PROVISIONS

§ 14701. General violation
The owner, charterer, managing operator,
agent, master, and individual in charge of a vessel violating this part or a regulation prescribed
under this part are each liable to the United
States Government for a civil penalty of not
more than $20,000. Each day of a continuing violation is a separate violation. The vessel also is
liable in rem for the penalty.
(Pub. L. 99–509, title V, § 5101(3), Oct. 21, 1986, 100
Stat. 1925.)
HISTORICAL AND REVISION NOTES
Revised section 14701
Source: Section (U.S. Code) 46 App. U.S.C. 83j.
Section 14701 provides that the owner, charterer,
managing operator, agent, master, and individual in
charge of a vessel violating Part J—Measurement of
Vessels—are each liable to the U.S. Government for a
civil penalty of not more than $20,000. It also provides
that the vessel is liable in rem for the penalty and that
each day of a continuing violation is a separate violation.

§ 14702. False statements
A person knowingly making a false statement
or representation in a matter in which a state-

Sec.

30101.
30102.
30103.
30104.
30105.

30106.

Extension of jurisdiction to cases of damage
or injury on land.
Liability to passengers.
Liability of master, mate, engineer, and pilot.
Personal injury to or death of seamen.
Restriction on recovery by non-citizens and
non-resident aliens for incidents in waters
of other countries.
Time limit on bringing maritime action for
personal injury or death.
PRIOR PROVISIONS

A prior chapter 301, consisting of section 30101, provided definitions for purposes of this subtitle, prior to
repeal by Pub. L. 109–304, § 6(b), Oct. 6, 2006, 120 Stat.
1509.

§ 30101. Extension of jurisdiction to cases of damage or injury on land
(a) IN GENERAL.—The admiralty and maritime
jurisdiction of the United States extends to and
includes cases of injury or damage, to person or
property, caused by a vessel on navigable waters, even though the injury or damage is done
or consummated on land.

Page 209

(b) PROCEDURE.—A civil action in a case under
subsection (a) may be brought in rem or in personam according to the principles of law and the
rules of practice applicable in cases where the
injury or damage has been done and consummated on navigable waters.
(c) ACTIONS AGAINST UNITED STATES.—
(1) EXCLUSIVE REMEDY.—In a civil action
against the United States for injury or damage
done or consummated on land by a vessel on
navigable waters, chapter 309 or 311 of this
title, as appropriate, provides the exclusive
remedy.
(2) ADMINISTRATIVE CLAIM.—A civil action
described in paragraph (1) may not be brought
until the expiration of the 6-month period
after the claim has been presented in writing
to the agency owning or operating the vessel
causing the injury or damage.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1509.)
HISTORICAL AND REVISION NOTES
Revised
Section
30101 ..........

§ 30104

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:740.

words. The words ‘‘from explosion, fire, collision, or
other cause’’ are omitted as unnecessary. The words
‘‘caused by’’ are substituted for ‘‘if it happens through’’
to eliminate unnecessary words. In paragraph (1), the
words ‘‘part B or F of subtitle II of this title’’ are substituted for ‘‘title 52 of the Revised Statutes’’ because
of the prior codification of subtitle II of title 46. In
paragraph (2), the word ‘‘imperfections’’ is omitted as
included in ‘‘defect’’.
Subsection (b) is substituted for ‘‘to the full amount
of damage’’ for clarity. See Hines v. Butler, 278 F. 877,
880, 881 (4th Cir. 1921), cert. denied, 257 U.S. 659 (1922);
The Annie Faxon, 75 F. 312, 317–319 (9th Cir. 1896).

§ 30103. Liability of master, mate, engineer, and
pilot
A person may bring a civil action against a
master, mate, engineer, or pilot of a vessel, and
recover damages, for personal injury or loss
caused by the master’s, mate’s, engineer’s, or pilot’s—
(1) negligence or willful misconduct; or
(2) neglect or refusal to obey the laws governing the navigation of vessels.

Source (Statutes at Large)

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1510.)

June 19, 1948, ch. 526, 62
Stat. 496.

HISTORICAL AND REVISION NOTES

In subsections (b) and (c), the words ‘‘civil action’’
are substituted for ‘‘suit’’ for consistency with rule 2 of
the Federal Rules of Civil Procedure (28 App. U.S.C.).
In subsection (c)(1), the words ‘‘for all causes of action arising after June 19, 1948, and for all causes of action where suit has not been hitherto filed under the
Federal Tort Claims Act’’ are omitted as obsolete.
PRIOR PROVISIONS
A prior section 30101, Pub. L. 100–710, title I, § 102(c),
Nov. 23, 1988, 102 Stat. 4738, provided definitions for purposes of this subtitle, prior to repeal by Pub. L. 109–304,
§ 6(b), Oct. 6, 2006, 120 Stat. 1509.
SHORT TITLE
This section is popularly known as the Admiralty Extension Act.

§ 30102. Liability to passengers
(a) LIABILITY.—The owner and master of a vessel, and the vessel, are liable for personal injury
to a passenger or damage to a passenger’s baggage caused by—
(1) a neglect or failure to comply with part
B or F of subtitle II of this title; or
(2) a known defect in the steaming apparatus
or hull of the vessel.
(b) NOT SUBJECT TO LIMITATION.—A liability
imposed under this section is not subject to limitation under chapter 305 of this title.

Revised
Section
30103 ..........

Source (U.S. Code)
46 App.:491 (words
after semicolon).

Before paragraph (1), the words ‘‘bring a civil action’’
are substituted for ‘‘sue’’ for consistency with rule 2 of
the Federal Rules of Civil Procedure (28 App. U.S.C.). In
paragraph (1), the word ‘‘carelessness’’ is omitted as included in ‘‘negligence’’.

§ 30104. Personal injury to or death of seamen
A seaman injured in the course of employment
or, if the seaman dies from the injury, the personal representative of the seaman may elect to
bring a civil action at law, with the right of
trial by jury, against the employer. Laws of the
United States regulating recovery for personal
injury to, or death of, a railway employee apply
to an action under this section.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1510;
Pub. L. 110–181, div. C, title XXXV, § 3521(a), Jan.
28, 2008, 122 Stat. 596.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

30104(a) ......

46 App.:688(a) (1st
sentence).

30104(b) ......

46 App.:688(a) (last
sentence).

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1509.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

30102 ..........

46 App.:491 (words
before semicolon).

Source (Statutes at Large)
R.S. § 4493 (words
semicolon).

before

In subsection (a), before paragraph (1), the words ‘‘or
either of them’’ are omitted as unnecessary. The words
‘‘are liable for personal injury to a passenger or damage
to a passenger’s baggage’’ are substituted for ‘‘Whenever damage is sustained by any passenger or his baggage’’ and ‘‘shall be liable to each and every person so
injured’’ for clarity and to eliminate unnecessary

Source (Statutes at Large)
R.S. § 4493 (words after semicolon).

Source (Statutes at Large)
Mar. 4, 1915, ch. 153, § 20(a),
38 Stat. 1185; June 5, 1920,
ch. 250, § 33, 41 Stat. 1007;
Pub. L. 97–389, title V,
§ 503(a)(1), Dec. 29, 1982, 96
Stat. 1955.

In subsection (a), the words ‘‘A seaman injured in the
course of employment or, if the seaman dies from the
injury, the personal representative of the seaman’’ are
substituted for ‘‘Any seaman who shall suffer personal
injury in the course of his employment’’ and ‘‘in case
of the death of any seaman as a result of any such personal injury the personal representative’’ to eliminate
unnecessary words. The words ‘‘bring a civil action’’
are substituted for ‘‘maintain an action’’ for consistency with rule 2 of the Federal Rules of Civil Procedure
(28 App. U.S.C.). The words ‘‘for damages’’ are omitted
as unnecessary. The words ‘‘against the employer’’ are

§ 30105

TITLE 46—SHIPPING

added for clarity. The words ‘‘Laws of the United
States regulating recovery for personal injury to, or
death of, a railway employee’’ are substituted for ‘‘all
statutes of the United States modifying or extending
the common-law right or remedy in cases of personal
injury to railway employees’’ and ‘‘all statutes of the
United States conferring or regulating the right of action for death in the case of railway employees’’ to
eliminate unnecessary words.
In subsection (b), the words ‘‘An action under this
section shall be brought’’ are substituted for ‘‘Jurisdiction in such actions shall be under’’ because 46 App.
U.S.C. 688(a) (last sentence) provides for venue, not jurisdiction. Panama R.R. Co. v. Johnson, 264 U.S. 375
(1924). As to the relationship between 46 App. U.S.C.
688(a) (last sentence) and 28 U.S.C. 1391(c), see Pure Oil
Co. v. Suarez, 384 U.S. 202 (1966).
AMENDMENTS
2008—Pub. L. 110–181 struck out subsec. (a) designation and heading before ‘‘A seaman injured’’ and struck
out heading and text of subsec. (b). Text read as follows: ‘‘An action under this section shall be brought in
the judicial district in which the employer resides or
the employer’s principal office is located.’’
EFFECTIVE DATE OF 2008 AMENDMENT
Pub. L. 110–181, div. C, title XXXV, § 3521(b), Jan. 28,
2008, 122 Stat. 596, provided that: ‘‘The amendment
made by subsection (a) [amending this section] shall be
effective as if included in the enactment of Public Law
109–304.’’

§ 30105. Restriction on recovery by non-citizens
and non-resident aliens for incidents in waters of other countries
(a) DEFINITION.—In this section, the term
‘‘continental shelf’’ has the meaning given that
term in article I of the 1958 Convention on the
Continental Shelf.
(b) RESTRICTION.—Except as provided in subsection (c), a civil action for maintenance and
cure or for damages for personal injury or death
may not be brought under a maritime law of the
United States if—
(1) the individual suffering the injury or
death was not a citizen or permanent resident
alien of the United States at the time of the
incident giving rise to the action;
(2) the incident occurred in the territorial
waters or waters overlaying the continental
shelf of a country other than the United
States; and
(3) the individual suffering the injury or
death was employed at the time of the incident by a person engaged in the exploration,
development, or production of offshore mineral or energy resources, including drilling,
mapping, surveying, diving, pipelaying, maintaining, repairing, constructing, or transporting supplies, equipment, or personnel, but not
including transporting those resources by a
vessel constructed or adapted primarily to
carry oil in bulk in the cargo spaces.
(c) NONAPPLICATION.—Subsection (b) does not
apply if the individual bringing the action establishes that a remedy is not available under the
laws of—
(1) the country asserting jurisdiction over
the area in which the incident occurred; or
(2) the country in which the individual suffering the injury or death maintained citizenship or residency at the time of the incident.

Page 210

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1510.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

30105(a) ......

46 App.:688(b)(1)
(last sentence).

30105(b) ......

46 App.:688(b)(1)
(less last sentence).
46 App.:688(b)(2).

30105(c) ......

Source (Statutes at Large)
Mar. 4, 1915, ch. 153, § 20(b),
as added Pub. L. 97–389,
title V, § 503(a)(2), Dec. 29,
1982, 96 Stat. 1955.

In subsection (b), before paragraph (1), the words
‘‘civil action’’ are substituted for ‘‘action’’ for consistency with rule 2 of the Federal Rules of Civil Procedure
(28 App. U.S.C.). The words ‘‘under subsection (a) of
this section or under any other’’ are omitted as unnecessary. In paragraph (2), the words ‘‘its territories, or
possessions’’ are omitted as unnecessary because of the
definition of ‘‘United States’’ in chapter 1 of the revised
title. In paragraph (3), the word ‘‘person’’ is substituted
for ‘‘enterprise’’ for consistency in the revised title.
REFERENCES IN TEXT
The 1958 Convention on the Continental Shelf, referred to in subsec. (a), was done at Geneva, April 29,
1958, and entered into force for the United States, June
10, 1964. See 15 UST 471; TIAS 5578.

§ 30106. Time limit on bringing maritime action
for personal injury or death
Except as otherwise provided by law, a civil
action for damages for personal injury or death
arising out of a maritime tort must be brought
within 3 years after the cause of action arose.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1511.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

30106 ..........

46 App.:763a.

Source (Statutes at Large)
Pub. L. 96–382, § 1, Oct. 6,
1980, 94 Stat. 1525.

The words ‘‘civil action’’ are substituted for ‘‘suit’’
for consistency with rule 2 of the Federal Rules or Civil
Procedure (28 App. U.S.C.). The words ‘‘or both’’ are
omitted as unnecessary. The words ‘‘must be brought’’
are substituted for ‘‘shall not be maintained unless
commenced’’ for clarity and consistency. The word
‘‘arose’’ is substituted for ‘‘accrued’’ for consistency in
the revised title.

CHAPTER 303—DEATH ON THE HIGH SEAS
Sec.

30301.
30302.
30303.
30304.
30305.
30306.
30307.
30308.

Short title.
Cause of action.
Amount and apportionment of recovery.
Contributory negligence.
Death of plaintiff in pending action.
Foreign cause of action.
Commercial aviation accidents.
Nonapplication.

§ 30301. Short title
This chapter may be cited as the ‘‘Death on
the High Seas Act’’.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1511.)
HISTORICAL AND REVISION NOTES
Revised
Section
30301 ..........

Source (U.S. Code)
46 App.:761 note.

Source (Statutes at Large)

Page 211
SHORT TITLE

Act Mar. 30, 1920, ch. 111, 41 Stat. 537, which enacted
chapter 21 (§ 761 et seq.) of the former Appendix to this
title, was popularly known as the ‘‘Death on the High
Seas Act’’, prior to being repealed and restated in this
chapter by Pub. L. 109–304, §§ 6(c), 19, Oct. 6, 2006, 120
Stat. 1509, 1710.

§ 30302. Cause of action

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1511.)
HISTORICAL AND REVISION NOTES

30302 ..........

Source (U.S. Code)
46 App.:761(a).

ligence of the decedent and reduce the recovery
accordingly.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1511.)
HISTORICAL AND REVISION NOTES
Revised
Section
30304 ..........

When the death of an individual is caused by
wrongful act, neglect, or default occurring on
the high seas beyond 3 nautical miles from the
shore of the United States, the personal representative of the decedent may bring a civil action in admiralty against the person or vessel
responsible. The action shall be for the exclusive
benefit of the decedent’s spouse, parent, child,
or dependent relative.

Revised
Section

Source (Statutes at Large)
Mar. 30, 1920, ch. 111, § 1(a),
41 Stat. 537; Pub. L.
106–181, title IV, § 404(a)(1),
Apr. 5, 2000, 114 Stat. 131.

The words ‘‘Subject to subsection (b) of this section’’
are omitted as unnecessary. The words ‘‘3 nautical
miles’’ are substituted for ‘‘a marine league’’ for clarity. The words ‘‘United States’’ are substituted for
‘‘any State, or the District of Columbia, or the Territories or dependencies of the United States’’ because of
the definition of ‘‘United States’’ in chapter 1 of the revised title. The words ‘‘bring a civil action’’ are substituted for ‘‘maintain a suit’’ for consistency with rule
2 of the Federal Rules of Civil Procedure (28 App.
U.S.C.). The words ‘‘for damages’’ are omitted as unnecessary. The words ‘‘in the district courts of the
United States’’ are omitted as unnecessary because of
28 U.S.C. 1333. The words ‘‘person or vessel’’ are substituted for ‘‘vessel, person, or corporation’’ because of
1 U.S.C. 1. The word ‘‘responsible’’ is substituted for
‘‘which would have been liable if death had not ensued’’
to eliminate unnecessary words.

§ 30303. Amount and apportionment of recovery
The recovery in an action under this chapter
shall be a fair compensation for the pecuniary
loss sustained by the individuals for whose benefit the action is brought. The court shall apportion the recovery among those individuals in
proportion to the loss each has sustained.

HISTORICAL AND REVISION NOTES

30303 ..........

Source (U.S. Code)
46 App.:762(a).

Source (Statutes at Large)
Mar. 30, 1920, ch. 111, § 2(a),
41 Stat. 537; Pub. L.
106–181, title IV, § 404(b)(1),
Apr. 5, 2000, 114 Stat. 131.

Source (U.S. Code)
46 App.:766.

Source (Statutes at Large)
Mar. 30, 1920, ch. 111, § 6, 41
Stat. 537.

§ 30305. Death of plaintiff in pending action
If a civil action in admiralty is pending in a
court of the United States to recover for personal injury caused by wrongful act, neglect, or
default described in section 30302 of this title,
and the individual dies during the action as a result of the wrongful act, neglect, or default, the
personal representative of the decedent may be
substituted as the plaintiff and the action may
proceed under this chapter for the recovery authorized by this chapter.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1511.)
HISTORICAL AND REVISION NOTES
Revised
Section
30305 ..........

Source (U.S. Code)
46 App.:765.

Source (Statutes at Large)
Mar. 30, 1920, ch. 111, § 5, 41
Stat. 537.

The words ‘‘If a civil action in admiralty is pending
in a court of the United States to recover for personal
injury caused by wrongful act, neglect, or default described in section 30302 of this title, and the individual
dies during the action as a result of the wrongful act,
neglect, or default’’ are substituted for ‘‘If a person die
[sic] as the result of such wrongful act, neglect, or default as is mentioned in section 761 of this Appendix
during the pendency in a court of admiralty of the
United States of a suit to recover damages for personal
injuries in respect of such act, neglect, or default’’ to
eliminate unnecessary words. The words ‘‘the plaintiff’’
are substituted for ‘‘a party’’ to be more precise.

§ 30306. Foreign cause of action
When a cause of action exists under the law of
a foreign country for death by wrongful act, neglect, or default on the high seas, a civil action
in admiralty may be brought in a court of the
United States based on the foreign cause of action, without abatement of the amount for
which recovery is authorized.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1511.)

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1511.)

Revised
Section

§ 30307

TITLE 46—SHIPPING

HISTORICAL AND REVISION NOTES
Revised
Section
30306 ..........

Source (U.S. Code)
46 App.:764.

Source (Statutes at Large)
Mar. 30, 1920, ch. 111, § 4, 41
Stat. 537.

The words ‘‘and just’’ are omitted as redundant to
‘‘fair’’. The words ‘‘each has sustained’’ are substituted
for ‘‘they may severally have suffered by reason of the
death of the person by whose representative the suit is
brought’’ to eliminate unnecessary words.

The words ‘‘a civil action in admiralty may be
brought in a court of the United States based on the
foreign cause of action’’ are substituted for ‘‘such right
may be maintained in an appropriate action in admiralty in the courts of the United States’’ for clarity and
consistency. The words ‘‘any statute of the United
States to the contrary notwithstanding’’ are omitted
as unnecessary.

§ 30304. Contributory negligence

§ 30307. Commercial aviation accidents

In an action under this chapter, contributory
negligence of the decedent is not a bar to recovery. The court shall consider the degree of neg-

(a) DEFINITION.—In this section, the term
‘‘nonpecuniary damages’’ means damages for
loss of care, comfort, and companionship.

§ 30308

TITLE 46—SHIPPING

(b) BEYOND 12 NAUTICAL MILES.—In an action
under this chapter, if the death resulted from a
commercial aviation accident occurring on the
high seas beyond 12 nautical miles from the
shore of the United States, additional compensation is recoverable for nonpecuniary damages,
but punitive damages are not recoverable.
(c) WITHIN 12 NAUTICAL MILES.—This chapter
does not apply if the death resulted from a commercial aviation accident occurring on the high
seas 12 nautical miles or less from the shore of
the United States.

Sec.

30504.
30505.
30506.
30507.
30508.
30509.
30510.
30511.
30512.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1512.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

30307(a) ......

46 App.:762(b)(2).

30307(b) ......
30307(c) ......

46 App.:762(b)(1).
46 App.:761(b).

Source (Statutes at Large)
Mar. 30, 1920, ch. 111, §§ 1(b),
2(b); as added Pub. L.
106–181, title IV, § 404(a)(2),
(b)(2), Apr. 5, 2000, 114
Stat. 131.

§ 30308. Nonapplication
(a) STATE LAW.—This chapter does not affect
the law of a State regulating the right to recover for death.
(b) INTERNAL WATERS.—This chapter does not
apply to the Great Lakes or waters within the
territorial limits of a State.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1512.)
HISTORICAL AND REVISION NOTES
Source (U.S. Code)

30308 ..........

46 App.:767.

Source (Statutes at Large)
Mar. 30, 1920, ch. 111, § 7, 41
Stat. 538.

In subsection (a), the words ‘‘law of a State’’ are substituted for ‘‘any State statute’’ for consistency in the
revised title. The words ‘‘regulating the right to recover for death’’ are substituted for ‘‘giving or regulating rights of action or remedies for death’’ to eliminate
unnecessary words.
In subsection (b), the words ‘‘or to any navigable waters in the Panama Canal Zone’’ are omitted because
the Panama Canal Zone was transferred to the Republic of Panama.

CHAPTER 305—EXONERATION AND
LIMITATION OF LIABILITY
Sec.

30501.
30502.
30503.

Loss by fire.
General limit of liability.
Limit of liability for personal injury or
death.
Apportionment of losses.
Provisions requiring notice of claim or limiting time for bringing action.
Provisions limiting liability for personal injury or death.
Vicarious liability for medical malpractice
with regard to crew.
Action by owner for limitation.
Liability as master, officer, or seaman not affected.

§ 30501. Definition
In this chapter, the term ‘‘owner’’ includes a
charterer that mans, supplies, and navigates a
vessel at the charterer’s own expense or by the
charterer’s own procurement.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1512.)
HISTORICAL AND REVISION NOTES

In subsections (b) and (c), the words ‘‘the United
States’’ are substituted for ‘‘any State, or the District
of Columbia, or the Territories or dependencies of the
United States’’ because of the definition of ‘‘United
States’’ in chapter 1 of the revised title.
In subsection (b), the words ‘‘of a decedent’’ are omitted as unnecessary.
In subsection (c), the words ‘‘if the death resulted
from a commercial aviation accident occurring on the
high seas’’ are substituted for ‘‘In the case of a commercial aviation accident, whenever the death of a person shall be caused by wrongful act, neglect, or default
occurring on the high seas’’ for consistency with subsection (b) and to eliminate unnecessary words. The
words ‘‘and the rules applicable under Federal, State,
and other appropriate law shall apply’’ are omitted as
unnecessary.

Revised
Section

Page 212

Definition.
Application.
Declaration of nature and value of goods.

Revised
Section
30501 ..........

Source (U.S. Code)
46 App.:186.

Source (Statutes at Large)
R.S. § 4286.

The words ‘‘In this chapter’’ are substituted for
‘‘within the meaning of the provisions of title 48 of the
Revised Statutes relating to the limitation of the liability of the owners of vessels’’ because of the codification of title 46, United States Code. The word ‘‘supplies’’ is substituted for ‘‘victual’’ for clarity. The
words ‘‘and such vessel, when so chartered, shall be liable in the same manner as if navigated by the owner
thereof’’ are omitted as unnecessary.

§ 30502. Application
Except as otherwise provided, this chapter (except section 30503) applies to seagoing vessels
and vessels used on lakes or rivers or in inland
navigation, including canal boats, barges, and
lighters.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1512.)
HISTORICAL AND REVISION NOTES
Revised
Section
30502 ..........

Source (U.S. Code)
46 App.:188.

Source (Statutes at Large)
R.S. § 4289; Feb. 18, 1875, ch.
80, § 1 (related to R.S.
§ 4289), 18 Stat. 320; June
19, 1886, ch. 421, § 4, 24
Stat. 80; June 5, 1936, ch.
521, § 4, 49 Stat. 1481.

§ 30503. Declaration of nature and value of goods
(a) IN GENERAL.—If a shipper of an item named
in subsection (b), contained in a parcel, package,
or trunk, loads the item as freight or baggage on
a vessel, without at the time of loading giving
to the person receiving the item a written notice of the true character and value of the item
and having that information entered on the bill
of lading, the owner and master of the vessel are
not liable as carriers. The owner and master are
not liable beyond the value entered on the bill of
lading.
(b) ITEMS.—The items referred to in subsection
(a) are precious metals, gold or silver plated articles, precious stones, jewelry, trinkets, watches, clocks, glass, china, coins, bills, securities,
printings, engravings, pictures, stamps, maps,

Page 213

papers, silks, furs, lace, and similar items of
high value and small size.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1512.)
HISTORICAL AND REVISION NOTES
Revised
Section
30503 ..........

Source (U.S. Code)
46 App.:181.

Source (Statutes at Large)
R.S. § 4281.

In subsection (a), the words ‘‘load’’ and ‘‘loading’’ are
substituted for ‘‘lade’’ and ‘‘lading’’ to use more common terminology. The words ‘‘person receiving the
item’’ are substituted for ‘‘master, clerk, agent, or
owner of such vessel receiving the same’’ to eliminate
unnecessary words. The words ‘‘thereof in any form or
manner’’ and ‘‘and according to the character thereof
so notified and’’ are omitted as unnecessary.
In subsection (b), the words ‘‘precious metals’’ are
substituted for ‘‘platina, gold, gold dust, silver, . . . or
other precious metals, . . . gold or silver in a manufactured or unmanufactured state’’, the words ‘‘precious
stones’’ are substituted for ‘‘diamonds, or other precious stones’’, the words ‘‘watches, clocks’’ are substituted for ‘‘watches, clocks, or timepieces of any description’’, the words ‘‘coins, bills, securities’’ are substituted for ‘‘bullion, . . . coins, . . . bills of any bank
or public body, . . . orders, notes, or securities for the
payment of money’’, the word ‘‘papers’’ is substituted
for ‘‘writings, title deeds’’, and the word ‘‘silks’’ is substituted for ‘‘silks in a manufactured or unmanufactured state, and whether wrought up or not wrought up
with any other material’’, to eliminate unnecessary
words. The words ‘‘and similar items of high value and
small size’’ are added to ensure that any of the items
specifically named in the source but omitted in the revised section, or similar items, will be covered by this
section.

§ 30504. Loss by fire
The owner of a vessel is not liable for loss or
damage to merchandise on the vessel caused by
a fire on the vessel unless the fire resulted from
the design or neglect of the owner.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1513.)
HISTORICAL AND REVISION NOTES
Revised
Section
30504 ..........

§ 30506

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:182.

Source (Statutes at Large)
R.S. § 4282.

The words ‘‘liable for’’ are substituted for ‘‘liable to
answer for or make good to any person’’, the words
‘‘merchandise on the vessel’’ are substituted for ‘‘any
merchandise whatsoever, which shall be shipped, taken
in, or put on board any such vessel’’, and the words
‘‘caused by a fire on the vessel’’ are substituted for ‘‘by
reason or by means of any fire happening to or on board
the vessel’’, to eliminate unnecessary words.

§ 30505. General limit of liability
(a) IN GENERAL.—Except as provided in section
30506 of this title, the liability of the owner of a
vessel for any claim, debt, or liability described
in subsection (b) shall not exceed the value of
the vessel and pending freight. If the vessel has
more than one owner, the proportionate share of
the liability of any one owner shall not exceed
that owner’s proportionate interest in the vessel
and pending freight.
(b) CLAIMS SUBJECT TO LIMITATION.—Unless
otherwise excluded by law, claims, debts, and liabilities subject to limitation under subsection
(a) are those arising from any embezzlement,

loss, or destruction of any property, goods, or
merchandise shipped or put on board the vessel,
any loss, damage, or injury by collision, or any
act, matter, or thing, loss, damage, or forfeiture, done, occasioned, or incurred, without the
privity or knowledge of the owner.
(c) WAGES.—Subsection (a) does not apply to a
claim for wages.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1513.)
HISTORICAL AND REVISION NOTES
Revised
Section
30505 ..........

Source (U.S. Code)
46 App.:183(a).

46 App.:189

Source (Statutes at Large)
R.S. § 4283(a); Aug. 29, 1935,
ch. 804, § 1, 49 Stat. 960;
June 5, 1936, ch. 521, § 1, 49
Stat. 1479.
June 26, 1884, ch. 121, § 18, 23
Stat. 57.

In subsection (a), the words ‘‘Except as provided in
section 30506 of this title’’ are substituted for ‘‘except
in the cases provided for in subsection (b) of this section’’ because 46 App. U.S.C. 183(b) is restated in section 30506 of the revised title. The words ‘‘whether
American or foreign’’ are omitted as unnecessary because of section 30502 of the revised title. The words
‘‘shall not exceed the value of the vessel and pending
freight’’ are substituted for ‘‘shall not . . . exceed the
amount or value of . . . such vessel, and her freight
then pending’’ in 46 App. U.S.C. 183(a) and for ‘‘the aggregate liabilities of all the owners of a vessel on account of the same shall not exceed the value of such
vessels and freight pending’’ in 46 App. U.S.C. 189 for
consistency and to eliminate unnecessary words. The
last sentence is substituted for ‘‘the interest of such
owner in’’ in 46 App. U.S.C. 183(a) and for ‘‘The individual liability of a shipowner shall be limited to the proportion of any or all debts and liabilities that his individual share of the vessel bears to the whole’’ in 46 App.
U.S.C. 189 for clarity and consistency. The words ‘‘Provided, That this provision shall not prevent any claimant from joining all the owners in one action’’ in 46
App. U.S.C. 189 are omitted as unnecessary.
Subsection (c) is substituted for ‘‘nor shall the same
apply to wages due to persons employed by said shipowners’’ in 46 App. U.S.C. 189 because of the reorganization of the source provisions.

§ 30506. Limit of liability for personal injury or
death
(a) APPLICATION.—This section applies only to
seagoing vessels, but does not apply to pleasure
yachts, tugs, towboats, towing vessels, tank vessels, fishing vessels, fish tender vessels, canal
boats, scows, car floats, barges, lighters, or nondescript vessels.
(b) MINIMUM LIABILITY.—If the amount of the
vessel owner’s liability determined under section 30505 of this title is insufficient to pay all
losses in full, and the portion available to pay
claims for personal injury or death is less than
$420 times the tonnage of the vessel, that portion shall be increased to $420 times the tonnage
of the vessel. That portion may be used only to
pay claims for personal injury or death.
(c) CALCULATION OF TONNAGE.—Under subsection (b), the tonnage of a self-propelled vessel
is the gross tonnage without deduction for engine room, and the tonnage of a sailing vessel is
the tonnage for documentation. However, space
for the use of seamen is excluded.
(d) CLAIMS ARISING ON DISTINCT OCCASIONS.—
Separate limits of liability apply to claims for
personal injury or death arising on distinct occasions.

§ 30507

TITLE 46—SHIPPING

Page 214

(e) PRIVITY OR KNOWLEDGE.—In a claim for personal injury or death, the privity or knowledge
of the master or the owner’s superintendent or
managing agent, at or before the beginning of
each voyage, is imputed to the owner.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1513.)

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1513.)

30507 ..........

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)
46 App.:183(b) (last
sentence).

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

30506(a) ......

46 App.:183(f) (related to 46
App.:183(b)–(e)).
46 App.:183(b) (1st
sentence).

30506(b) ......

30506(c) ......

30506(d) ......
30506(e) ......

46 App.:183(c).

Source (Statutes at Large)

R.S. § 4283(b) (1st sentence);
Aug. 29, 1935, ch. 804, § 1, 49
Stat. 960; June 5, 1936, ch.
521, § 1, 49 Stat. 1479; Pub.
L. 98–498, title II, § 213(a),
Oct. 19, 1984, 98 Stat. 2306.
R.S. § 4283(c)–(f) (related to
R.S. § 4283(b)–(e)); Aug. 29,
1935, ch. 804, § 1, 49 Stat.
960; June 5, 1936, ch. 521,
§ 1, 49 Stat. 1480.

46 App.:183(d).
46 App.:183(e).

Subsection (a) is written as an application provision
rather than as a definition to be more direct and to
avoid having to repeat the word ‘‘seagoing’’ throughout
the section. The words ‘‘fishing vessel, fish tender vessel’’ are substituted for ‘‘fishing vessels or their
tenders’’ for clarity. The words ‘‘nondescript vessel’’
are substituted for ‘‘nondescript self-propelled vessels’’
and ‘‘nondescript non-self-propelled vessels’’ to eliminate unnecessary words. The words ‘‘self-propelled
lighters’’ are omitted as covered by ‘‘lighter’’. The
words ‘‘even though the same may be seagoing vessels
within the meaning of such term as used in section 188
of this Appendix, as amended’’ are omitted as unnecessary. This provision is restated also at section 30508(a)
of the revised title.
In subsection (b), the words ‘‘is such that the portion
available to pay claims for personal injury or death’’
are substituted for ‘‘is insufficient to pay all losses in
full, and the portion of such amount applicable to the
payment of losses in respect of loss of life or bodily injury’’ to eliminate unnecessary words.
In subsection (c), the words ‘‘self-propelled vessel’’
are substituted for ‘‘steam or motor vessel’’, and the
words ‘‘tonnage for documentation’’ are substituted for
‘‘registered tonnage’’, for consistency in the revised
title. The words ‘‘space for the use of seamen’’ are substituted for ‘‘space occupied by seamen or apprentices
and appropriated to their use’’ to eliminate unnecessary words.
In subsection (d), the words ‘‘Separate limits of liability apply’’ are substituted for ‘‘The owner . . . shall
be liable . . . to the same extent as if no other loss of
life or bodily injury had arisen’’ to eliminate unnecessary words.
In subsection (e), the words ‘‘the privity or knowledge . . . is imputed to the owner’’ are substituted for
‘‘shall be deemed conclusively the privity or knowledge
of the owner’’ for consistency and to eliminate unnecessary words.

§ 30507. Apportionment of losses
If the amounts determined under sections
30505 and 30506 of this title are insufficient to
pay all claims—
(1) all claimants shall be paid in proportion
to their respective losses out of the amount
determined under section 30505 of this title;
and
(2) personal injury and death claimants, if
any, shall be paid an additional amount in
proportion to their respective losses out of the
additional amount determined under section
30506(b) of this title.

46 App.:184.

Source (Statutes at Large)
R.S. § 4283(b) (last sentence);
Aug. 29, 1935, ch. 804, § 1, 49
Stat. 960; June 5, 1936, ch.
521, § 1, 49 Stat. 1479; Pub.
L. 98–498, title II, § 213(a),
Oct. 19, 1984, 98 Stat. 2306.
R.S. § 4284; Feb. 27, 1877, ch.
69, § 1 (related to R.S.
§ 4284), 19 Stat. 251.

This section is substituted for 46 App. U.S.C. 183(b)
(last sentence) and 184 (words before semicolon) for
clarity and consistency and to eliminate unnecessary
words. The text of 46 App. U.S.C. 184 (words after semicolon) is omitted as unnecessary. See G. Gilmore & C.
Black, The Law of Admiralty, § 10–8 (2d ed. 1975).

§ 30508. Provisions requiring notice of claim or
limiting time for bringing action
(a) APPLICATION.—This section applies only to
seagoing vessels, but does not apply to pleasure
yachts, tugs, towboats, towing vessels, tank vessels, fishing vessels, fish tender vessels, canal
boats, scows, car floats, barges, lighters, or nondescript vessels.
(b) MINIMUM TIME LIMITS.—The owner, master,
manager, or agent of a vessel transporting passengers or property between ports in the United
States, or between a port in the United States
and a port in a foreign country, may not limit
by regulation, contract, or otherwise the period
for—
(1) giving notice of, or filing a claim for, personal injury or death to less than 6 months
after the date of the injury or death; or
(2) bringing a civil action for personal injury
or death to less than one year after the date of
the injury or death.
(c) EFFECT OF FAILURE TO GIVE NOTICE.—When
notice of a claim for personal injury or death is
required by a contract, the failure to give the
notice is not a bar to recovery if—
(1) the court finds that the owner, master, or
agent of the vessel had knowledge of the injury or death and the owner has not been prejudiced by the failure;
(2) the court finds there was a satisfactory
reason why the notice could not have been
given; or
(3) the owner of the vessel fails to object to
the failure to give the notice.
(d) TOLLING OF PERIOD TO GIVE NOTICE.—If a
claimant is a minor or mental incompetent, or
if a claim is for wrongful death, any period provided by a contract for giving notice of the
claim is tolled until the earlier of—
(1) the date a legal representative is appointed for the minor, incompetent, or decedent’s estate; or
(2) 3 years after the injury or death.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1514.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

30508(a) ......

46 App.:183(f) (related to 46
App.:183b).

R.S. § 4283(f) (related to R.S.
§ 4283A); Aug. 29, 1935, ch.
804, § 1, 49 Stat. 960; June
5, 1936, ch. 521, § 1, 49 Stat.
1480.

Page 215

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section

Source (U.S. Code)

30508(b) ......

46 App.:183b(a).

30508(c) ......
30508(d) ......

46 App.:183b(b).
46 App.:183b(c).

Source (Statutes at Large)
R.S. § 4283A, as added Aug.
29, 1935, ch. 804, § 3, 49
Stat. 960.

For an explanation of subsection (a), see the revision
notes for section 30506(a), where 46 App. U.S.C. 183(f) is
also restated.
In subsection (b), before paragraph (1), the words
‘‘sea-going vessel (other than tugs, barges, fishing vessels and their tenders)’’ are omitted because of subsection (a) of this section. The word ‘‘merchandise’’ is
omitted as covered by ‘‘property’’. The words ‘‘between
ports in the United States, or between a port in the
United States and a port in a foreign country’’ are substituted for ‘‘from or between ports of the United
States and foreign ports’’ for clarity and for consistency with section 30509(a)(1) of the revised title. See
Burstein v. United States Lines Co., 43 F. Supp. 226
(S.D.N.Y. 1942), rev’d on other grounds, 134 F.2d 89 (2d
Cir. 1943). The word ‘‘rule’’ is omitted as covered by
‘‘regulation’’. In paragraph (1), the words ‘‘after the
date of the injury or death’’ are added for clarity and
consistency with paragraph (2).
In subsection (c), before paragraph (1), the words
‘‘When notice of a claim for personal injury or death is
required by a contract, the failure to give the notice’’
are substituted for ‘‘Failure to give such notice, where
lawfully prescribed in such contract’’ for clarity. In
paragraph (1), the words ‘‘the court finds’’ are stated at
the beginning rather than the middle to be more precise. The word ‘‘damage’’ is omitted as unnecessary. In
paragraph (2), the words ‘‘the court finds there was a
satisfactory reason’’ are substituted for ‘‘the court excuses such failure on the ground that for some satisfactory reason’’ to eliminate unnecessary words.
In subsection (d), before paragraph (1), the word
‘‘claimant’’ is substituted for ‘‘person who is entitled
to recover on any such claim’’ to eliminate unnecessary words. The word ‘‘lawful’’ is omitted as unnecessary. The words ‘‘is tolled until’’ are substituted for
‘‘shall not be applicable so long as’’ and ‘‘but shall be
applicable from’’ for clarity and to eliminate unnecessary words.

§ 30509. Provisions limiting liability for personal
injury or death
(a) PROHIBITION.—
(1) IN GENERAL.—The owner, master, manager, or agent of a vessel transporting passengers between ports in the United States, or
between a port in the United States and a port
in a foreign country, may not include in a regulation or contract a provision limiting—
(A) the liability of the owner, master, or
agent for personal injury or death caused by
the negligence or fault of the owner or the
owner’s employees or agents; or
(B) the right of a claimant for personal injury or death to a trial by court of competent jurisdiction.
(2) VOIDNESS.—A provision described in paragraph (1) is void.
(b) EMOTIONAL DISTRESS, MENTAL SUFFERING,
PSYCHOLOGICAL INJURY.—
(1) IN GENERAL.—Subsection (a) does not prohibit a provision in a contract or in ticket
conditions of carriage with a passenger that
relieves an owner, master, manager, agent, operator, or crewmember of a vessel from liability for infliction of emotional distress, mental

AND

§ 30510

TITLE 46—SHIPPING

suffering, or psychological injury so long as
the provision does not limit such liability
when the emotional distress, mental suffering,
or psychological injury is—
(A) the result of physical injury to the
claimant caused by the negligence or fault
of a crewmember or the owner, master, manager, agent, or operator;
(B) the result of the claimant having been
at actual risk of physical injury, and the
risk was caused by the negligence or fault of
a crewmember or the owner, master, manager, agent, or operator; or
(C) intentionally inflicted by a crewmember or the owner, master, manager,
agent, or operator.
(2) SEXUAL OFFENSES.—This subsection does
not limit the liability of a crewmember or the
owner, master, manager, agent, or operator of
a vessel in a case involving sexual harassment,
sexual assault, or rape.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1514.)
HISTORICAL AND REVISION NOTES
Revised
Section
30509 ..........

Source (U.S. Code)
46 App.:183c.

Source (Statutes at Large)
R.S. § 4283B, as added June
5, 1936, ch. 521, § 2, 49 Stat.
1480; Oct. 19, 1996, Pub. L.
104–324, § 1129(b), 110 Stat.
3984.

In subsection (a)(1), before subparagraph (A), the
words ‘‘may not’’ are substituted for ‘‘It shall be unlawful’’ for consistency in the revised title and with other
titles of the United States Code. The words ‘‘rule’’ and
‘‘agreement’’ are omitted as covered by ‘‘regulation’’
and ‘‘contract’’, respectively. The words ‘‘a provision
limiting’’ are substituted for ‘‘any provision or limitation (1) purporting . . . to relieve . . . , or (2) purporting . . . to lessen, weaken, or avoid’’ to eliminate unnecessary words. In subparagraph (A), the words ‘‘the
owner’s employees or agents’’ are substituted for ‘‘his
servants’’ for consistency in the revised title. In subparagraph (B), the words ‘‘on the question of liability
for such loss or injury, or the measure of damages
therefor’’ are omitted as unnecessary.
Subsection (b)(2) is substituted for 46 App. U.S.C. 183c
(last sentence) for consistency and to eliminate unnecessary words.

§ 30510. Vicarious liability for
practice with regard to crew

medical

mal-

In a civil action by any person in which the
owner or operator of a vessel or employer of a
crewmember is claimed to have vicarious liability for medical malpractice with regard to a
crewmember occurring at a shoreside facility,
and to the extent the damages resulted from the
conduct of any shoreside doctor, hospital, medical facility, or other health care provider, the
owner, operator, or employer is entitled to rely
on any statutory limitations of liability applicable to the doctor, hospital, medical facility, or
other health care provider in the State of the
United States in which the shoreside medical
care was provided.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1515.)

§ 30511

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
30510 ..........

Source (U.S. Code)
46 App.:183(g).

HISTORICAL AND REVISION NOTES

Source (Statutes at Large)

Revised
Section

R.S.
§ 4283(g);
Pub.
L.
104–324, § 1129(a), Oct. 19,
1996, 110 Stat. 3984.

30512 ..........

The words ‘‘civil action’’ are substituted for ‘‘suit’’
for consistency in the revised title. The words ‘‘is entitled to rely on any statutory’’ are substituted for
‘‘shall be entitled to rely upon any and all statutory’’
to eliminate unnecessary words.

(2) transfer to a trustee appointed by the
court, for the benefit of claimants—
(A) the owner’s interest in the vessel and
pending freight; and
(B) an amount, or approved security, that
the court may fix from time to time as necessary to carry out this chapter.
(c) CESSATION OF OTHER ACTIONS.—When an action has been brought under this section and the
owner has complied with subsection (b), all
claims and proceedings against the owner related to the matter in question shall cease.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1515.)
HISTORICAL AND REVISION NOTES
Revised
Section
30511 ..........

Source (U.S. Code)
46 App.:185.

Source (Statutes at Large)
R.S. § 4285; June 5, 1936, ch.
521, § 3, 49 Stat. 1480.

In subsection (a), the words ‘‘bring a civil action . . .
in a district court of the United States’’ are substituted
for ‘‘petition a district court of the United States’’ for
consistency in the revised title and with other titles of
the United States Code. See rule 2 of the Federal Rules
of Civil Procedure (28 App. U.S.C.). The words ‘‘of competent jurisdiction’’ are omitted as unnecessary.
In subsection (b), the word ‘‘pending’’ before
‘‘freight’’ is added for consistency in the chapter. The
words ‘‘to carry out this chapter’’ are substituted for
‘‘to carry out the provisions of section 183 of this Appendix’’ because of the reorganization of the source
provisions.

§ 30512. Liability as master, officer, or seaman
not affected
This chapter does not affect the liability of an
individual as a master, officer, or seaman, even
though the individual is also an owner of the
vessel.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1516.)

Source (U.S. Code)
46 App.:187.

Source (Statutes at Large)
R.S. § 4287.

This section is substituted for the source provision
for consistency with the restatement of 46 App. U.S.C.
183(a) and 189 in section 30505 and to eliminate unnecessary words. The reference in the source to particular
sections is extended to include the entire chapter to
simplify the reference and to conform to the obvious
original policy and intent of the source provision.

§ 30511. Action by owner for limitation
(a) IN GENERAL.—The owner of a vessel may
bring a civil action in a district court of the
United States for limitation of liability under
this chapter. The action must be brought within
6 months after a claimant gives the owner written notice of a claim.
(b) CREATION OF FUND.—When the action is
brought, the owner (at the owner’s option)
shall—
(1) deposit with the court, for the benefit of
claimants—
(A) an amount equal to the value of the
owner’s interest in the vessel and pending
freight, or approved security; and
(B) an amount, or approved security, that
the court may fix from time to time as necessary to carry out this chapter; or

Page 216

CHAPTER 307—LIABILITY OF WATER
CARRIERS
Sec.

30701.
30702.
30703.
30704.
30705.
30706.
30707.

Definition.
Application.
Bills of lading.
Loading, stowage, custody, care, and delivery.
Seaworthiness.
Defenses.
Criminal penalty.

§ 30701. Definition
In this chapter, the term ‘‘carrier’’ means the
owner, manager, charterer, agent, or master of a
vessel.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1516.)
HISTORICAL AND REVISION NOTES
Revised
Section
30701 ..........

Source (U.S. Code)

Source (Statutes at Large)

(no source).

This chapter codifies the Act of February 13, 1893 (ch.
105, 27 Stat. 445) (commonly known as the Harter Act).
Changes are made to simplify, clarify, and modernize
the language and style, but the intent is that these
changes should not result in changes in substance.
A definition of ‘‘carrier’’ is added based on language
appearing in various provisions of the Harter Act. The
definition avoids the need to repeat in various sections
of this chapter the list of persons to whom the requirements and restrictions of this chapter apply, and it ensures that the list of persons is consistent in the chapter.
CARRIAGE OF GOODS BY SEA ACT
Act Apr. 16, 1936, ch. 229, 49 Stat. 1207, as amended by
Pub. L. 97–31, § 12(146), Aug. 6, 1981, 95 Stat. 166, provided:
‘‘That every bill of lading or similar document of
title which is evidence of a contract for the carriage of
goods by sea to or from ports of the United States, in
foreign trade, shall have effect subject to the provisions of this Act.

‘‘TITLE I
‘‘SECTION 1. When used in this Act—
‘‘(a) The term ‘carrier’ includes the owner or the
charterer who enters into a contract of carriage with a
shipper.
‘‘(b) The term ‘contract of carriage’ applies only to
contracts of carriage covered by a bill of lading or any
similar document of title, insofar as such document relates to the carriage of goods by sea, including any bill
of lading or any similar document as aforesaid issued
under or pursuant to a charter party from the moment
at which such bill of lading or similar document of title
regulates the relations between a carrier and a holder
of the same.
‘‘(c) The term ‘goods’ includes goods, wares, merchandise, and articles of every kind whatsoever, except live

Page 217

§ 30701

TITLE 46—SHIPPING

animals and cargo which by the contract of carriage is
stated as being carried on deck and is so carried.
‘‘(d) The term ‘ship’ means any vessel used for the
carriage of goods by sea.
‘‘(e) The term ‘carriage of goods’ covers the period
from the time when the goods are loaded on to the time
when they are discharged from the ship.
‘‘RISKS
‘‘SEC. 2. Subject to the provisions of section 6, under
every contract of carriage of goods by sea, the carrier
in relation to the loading, handling, stowage, carriage,
custody, care, and discharge of such goods, shall be subject to the responsibilities and liabilities and entitled
to the rights and immunities hereinafter set forth.
‘‘RESPONSIBILITIES AND LIABILITIES
‘‘SEC. 3. (1) The carrier shall be bound, before and at
the beginning of the voyage, to exercise due diligence
to—
‘‘(a) Make the ship seaworthy;
‘‘(b) Properly man, equip, and supply the ship;
‘‘(c) Make the holds, refrigerating and cooling chambers, and all other parts of the ship in which goods are
carried, fit and safe for their reception, carriage, and
preservation.
‘‘(2) The carrier shall properly and carefully load,
handle, stow, carry, keep, care for, and discharge the
goods carried.
‘‘(3) After receiving the goods into his charge the carrier, or the master or agent of the carrier, shall, on demand of the shipper, issue to the shipper a bill of lading
showing among other things—
‘‘(a) The leading marks necessary for identification of
the goods as the same are furnished in writing by the
shipper before the loading of such goods starts, provided such marks are stamped or otherwise shown
clearly upon the goods if uncovered, or on the cases or
coverings in which such goods are contained, in such a
manner as should ordinarily remain legible until the
end of the voyage.
‘‘(b) Either the number of packages or pieces, or the
quantity or weight, as the case may be, as furnished in
writing by the shipper.
‘‘(c) The apparent order and condition of the goods:
Provided, That no carrier, master, or agent of the carrier, shall be bound to state or show in the bill of lading any marks, number, quantity, or weight which he
has reasonable ground for suspecting not accurately to
represent the goods actually received, or which he has
had no reasonable means of checking.
‘‘(4) Such a bill of lading shall be prima facie evidence
of the receipt by the carrier of the goods as therein described in accordance with paragraphs (3)(a), (b), and
(c), of this section: Provided, That nothing in this Act
shall be construed as repealing or limiting the application of any part of the Act, as amended, entitled ‘An
Act relating to bills of lading in interstate and foreign
commerce’, approved August 29, 1916 (U.S.C., title 49,
secs. 81–124), commonly known as the ‘Pomerene Bills
of Lading Act’ [now chapter 801 of Title 49, Transportation].
‘‘(5) The shipper shall be deemed to have guaranteed
to the carrier the accuracy at the time of shipment of
the marks, number, quantity, and weight, as furnished
by him; and the shipper shall indemnify the carrier
against all loss, damages, and expenses arising or resulting from inaccuracies in such particulars. The right
of the carrier to such indemnity shall in no way limit
his responsibility and liability under the contract of
carriage to any person other than the shipper.
‘‘(6) Unless notice of loss or damage and the general
nature of such loss or damage be given in writing to the
carrier or his agent at the port of discharge before or
at the time of the removal of the goods into the custody of the person entitled to delivery thereof under
the contract of carriage, such removal shall be prima
facie evidence of the delivery by the carrier of the
goods as described in the bill of lading. If the loss or

damage is not apparent, the notice must be given within three days of the delivery.
‘‘Said notice of loss or damage may be endorsed upon
the receipt for the goods given by the person taking delivery thereof.
‘‘The notice in writing need not be given if the state
of the goods has at the time of their receipt been the
subject of joint survey or inspection.
‘‘In any event the carrier and the ship shall be discharged from all liability in respect of loss or damage
unless suit is brought within one year after delivery of
the goods or the date when the goods should have been
delivered: Provided, That if a notice of loss or damage,
either apparent or concealed, is not given as provided
for in this section, that fact shall not affect or prejudice the right of the shipper to bring suit within one
year after the delivery of the goods or the date when
the goods should have been delivered.
‘‘In the case of any actual or apprehended loss or
damage the carrier and the receiver shall give all reasonable facilities to each other for inspecting and tallying the goods.
‘‘(7) After the goods are loaded the bill of lading to be
issued by the carrier, master, or agent of the carrier to
the shipper shall, if the shipper so demands, be a
‘shipped’ bill of lading: Provided, That if the shipper
shall have previously taken up any document of title to
such goods, he shall surrender the same as against the
issue of the ‘shipped’ bill of lading, but at the option of
the carrier such document of title may be noted at the
port of shipment by the carrier, master, or agent with
the name or names of the ship or ships upon which the
goods have been shipped and the date or dates of shipment, and when so noted the same shall for the purpose
of this section be deemed to constitute a ‘shipped’ bill
of lading.
‘‘(8) Any clause, covenant, or agreement in a contract
of carriage relieving the carrier or the ship from liability for loss or damage to or in connection with the
goods, arising from negligence, fault, or failure in the
duties and obligations provided in this section, or lessening such liability otherwise than as provided in this
Act, shall be null and void and of no effect. A benefit
of insurance in favor of the carrier, or similar clause,
shall be deemed to be a clause relieving the carrier
from liability.
‘‘RIGHTS AND IMMUNITIES
‘‘SEC. 4. (1) Neither the carrier nor the ship shall be
liable for loss or damage arising or resulting from unseaworthiness unless caused by want of due diligence
on the part of the carrier to make the ship seaworthy,
and to secure that the ship is properly manned,
equipped, and supplied, and to make the holds, refrigerating and cool chambers, and all other parts of the
ship in which goods are carried fit and safe for their reception, carriage, and preservation in accordance with
the provisions of paragraph (1) of section 3. Whenever
loss or damage has resulted from unseaworthiness, the
burden of proving the exercise of due diligence shall be
on the carrier or other persons claiming exemption
under this section.
‘‘(2) Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from—
‘‘(a) Act, neglect, or default of the master, mariner,
pilot, or the servants of the carrier in the navigation or
in the management of the ship;
‘‘(b) Fire, unless caused by the actual fault or privity
of the carrier;
‘‘(c) Perils, dangers, and accidents of the sea or other
navigable waters;
‘‘(d) Act of God;
‘‘(e) Act of war;
‘‘(f) Act of public enemies;
‘‘(g) Arrest or restraint of princes, rulers, or people,
or seizure under legal process;
‘‘(h) Quarantine restrictions;
‘‘(i) Act or omission of the shipper or owner of the
goods, his agent or representative;
‘‘(j) Strikes or lockouts or stoppage or restraint of
labor from whatever cause, whether partial or general:

§ 30701

TITLE 46—SHIPPING

Provided, That nothing herein contained shall be construed to relieve a carrier from responsibility for the
carrier’s own acts;
‘‘(k) Riots and civil commotions;
‘‘(l) Saving or attempting to save life or property at
sea;
‘‘(m) Wastage in bulk or weight or any other loss or
damage arising from inherent defect, quality, or vice of
the goods;
‘‘(n) Insufficiency of packing;
‘‘(o) Insufficiency or inadequacy of marks;
‘‘(p) Latent defects not discoverable by due diligence;
and
‘‘(q) Any other cause arising without the actual fault
and privity of the carrier and without the fault or neglect of the agents or servants of the carrier, but the
burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual
fault or privity of the carrier nor the fault or neglect
of the agents or servants of the carrier contributed to
the loss or damage.
‘‘(3) The shipper shall not be responsible for loss or
damage sustained by the carrier or the ship arising or
resulting from any cause without the act, fault, or neglect of the shipper, his agents, or his servants.
‘‘(4) Any deviation in saving or attempting to save
life or property at sea, or any reasonable deviation
shall not be deemed to be an infringement or breach of
this Act or of the contract of carriage, and the carrier
shall not be liable for any loss or damage resulting
therefrom: Provided, however, That if the deviation is
for the purpose of loading or unloading cargo or passengers it shall, prima facie, be regarded as unreasonable.
‘‘(5) Neither the carrier nor the ship shall in any
event be or become liable for any loss or damage to or
in connection with the transportation of goods in an
amount exceeding $500 per package lawful money of the
United States, or in case of goods not shipped in packages, per customary freight unit, or the equivalent of
that sum in other currency, unless the nature and
value of such goods have been declared by the shipper
before shipment and inserted in the bill of lading. This
declaration, if embodied in the bill of lading, shall be
prima facie evidence, but shall not be conclusive on the
carrier.
‘‘By agreement between the carrier, master, or agent
of the carrier, and the shipper another maximum
amount than that mentioned in this paragraph may be
fixed: Provided, That such maximum shall not be less
than the figure above named. In no event shall the carrier be liable for more than the amount of damage actually sustained.
‘‘Neither the carrier nor the ship shall be responsible
in any event for loss or damage to or in connection
with the transportation of the goods if the nature or
value thereof has been knowingly and fraudulently misstated by the shipper in the bill of lading.
‘‘(6) Goods of an inflammable, explosive, or dangerous
nature to the shipment whereof the carrier, master or
agent of the carrier, has not consented with knowledge
of their nature and character, may at any time before
discharge be landed at any place or destroyed or rendered innocuous by the carrier without compensation,
and the shipper of such goods shall be liable for all
damages and expenses directly or indirectly arising out
of or resulting from such shipment. If any such goods
shipped with such knowledge and consent shall become
a danger to the ship or cargo, they may in like manner
be landed at any place, or destroyed or rendered innocuous by the carrier without liability on the part of the
carrier except to general average, if any.
‘‘SURRENDER OF RIGHTS AND IMMUNITIES AND
INCREASE OF RESPONSIBILITIES AND LIABILITIES
‘‘SEC. 5. A carrier shall be at liberty to surrender in
whole or in part all or any of his rights and immunities
or to increase any of his responsibilities and liabilities
under this Act, provided such surrender or increase

Page 218

shall be embodied in the bill of lading issued to the
shipper.
‘‘The provisions of this Act shall not be applicable to
charter parties; but if bills of lading are issued in the
case of a ship under a charter party, they shall comply
with the terms of this Act. Nothing in this Act shall be
held to prevent the insertion in a bill of lading of any
lawful provision regarding general average.
‘‘SPECIAL CONDITIONS
‘‘SEC. 6. Notwithstanding the provisions of the preceding sections, a carrier, master or agent of the carrier, and a shipper shall, in regard to any particular
goods be at liberty to enter into any agreement in any
terms as to the responsibility and liability of the carrier for such goods, and as to the rights and immunities
of the carrier in respect of such goods, or his obligation
as to seaworthiness (so far as the stipulation regarding
seaworthiness is not contrary to public policy), or the
care or diligence of his servants or agents in regard to
the loading, handling, stowage, carriage, custody, care,
and discharge of the goods carried by sea: Provided,
That in this case no bill of lading has been or shall be
issued and that the terms agreed shall be embodied in
a receipt which shall be a nonnegotiable document and
shall be marked as such.
‘‘Any agreement so entered into shall have full legal
effect: Provided, That this section shall not apply to ordinary commercial shipments made in the ordinary
course of trade but only to other shipments where the
character or condition of the property to be carried or
the circumstances, terms, and conditions under which
the carriage is to be performed are such as reasonably
to justify a special agreement.
‘‘[AGREEMENT AS TO RESPONSIBILITY AND LIABILITY BEFORE LOADING OR AFTER DISCHARGE]
‘‘SEC. 7. Nothing contained in this Act shall prevent
a carrier or a shipper from entering into any agreement, stipulation, condition, reservation, or exemption
as to the responsibility and liability of the carrier or
the ship for the loss or damage to or in connection with
the custody and care and handling of goods prior to the
loading on and subsequent to the discharge from the
ship on which the goods are carried by sea.
‘‘[RIGHTS AND LIABILITIES UNDER OTHER
OBLIGATIONS]
‘‘SEC. 8. The provisions of this Act shall not affect the
rights and obligations of the carrier under the provisions of the Shipping Act, 1916 [former 46 U.S.C. App.
801 et seq., see Disposition Table preceding section 101
of this title], or under the provisions of sections 4281 to
4289, inclusive, of the Revised Statutes of the United
States [see chapter 305 of this title] or of any amendments thereto; or under the provisions of any other enactment for the time being in force relating to the limitation of the liability of the owners of seagoing vessels.

‘‘TITLE II
‘‘[DISCRIMINATION BETWEEN COMPETING
SHIPPERS]
‘‘SECTION. 9. Nothing contained in this Act shall be
construed as permitting a common carrier by water to
discriminate between competing shippers similarly
placed in time and circumstances, either (a) with respect to their right to demand and receive bills of lading subject to the provisions of this Act; or (b) when issuing such bills of lading, either in the surrender of any
of the carrier’s rights and immunities or in the increase of any of the carrier’s responsibilities and liabilities pursuant to section 5, title I, of this Act; or (c) in
any other way prohibited by the Shipping Act, 1916, as
amended [former 46 U.S.C. App. 801 et seq., see Disposition Table preceding section 101 of this title].

Page 219

§ 30703

TITLE 46—SHIPPING
‘‘[OMITTED]

‘‘SEC. 10. [Amended section 25 of the Interstate Commerce Act (former 49 U.S.C. 25).]
‘‘[WEIGHT OF BULK CARGO]
‘‘SEC. 11. Where under the customs of any trade the
weight of any bulk cargo inserted in the bill of lading
is a weight ascertained or accepted by a third party
other than the carrier or the shipper, and the fact that
the weight is so ascertained or accepted is stated in the
bill of lading, then, notwithstanding anything in this
Act, the bill of lading shall not be deemed to be prima
facie evidence against the carrier of the receipt of
goods of the weight so inserted in the bill of lading, and
the accuracy thereof at the time of shipment shall not
be deemed to have been guaranteed by the shipper.
‘‘[RELATIONSHIP TO OTHER LAW]
‘‘SEC. 12. Nothing in this Act shall be construed as superseding any part of the Act entitled ‘An Act relating
to navigation of vessels, bills of lading, and to certain
obligations, duties, and rights in connection with the
carriage of property’, approved February 13, 1893 [now
this chapter], or of any other law which would be applicable in the absence of this Act, insofar as they relate
to the duties, responsibilities, and liabilities of the ship
or carrier prior to the time when the goods are loaded
on or after the time they are discharged from the ship.
‘‘[SCOPE OF ACT; ‘‘UNITED STATES’’; ‘‘FOREIGN
TRADE’’]
‘‘SEC. 13. This Act shall apply to all contracts for carriage of goods by sea to or from ports of the United
States in foreign trade. As used in this Act the term
‘United States’ includes its districts, territories, and
possessions: Provided, however, That the Philippine Legislature may by law exclude its application to transportation to or from ports of the Philippine Islands. The
term ‘foreign trade’ means the transportation of goods
between the ports of the United States and ports of foreign countries. Nothing in this Act shall be held to
apply to contracts for carriage of goods by sea between
any port of the United States or its possessions, and
any other port of the United States or its possessions:
Provided, however, That any bill of lading or similar
document of title which is evidence of a contract for
the carriage of goods by sea between such ports, containing an express statement that it shall be subject to
the provisions of this Act, shall be subjected hereto as
fully as if subject hereto by the express provisions of
this Act: Provided further, That every bill of lading or
similar document of title which is evidence of a contract for the carriage of goods by sea from ports of the
United States, in foreign trade, shall contain a statement that it shall have effect subject to the provisions
of this Act.
‘‘[As to proviso in second sentence that Philippine
Legislature may by law exclude its application to
transportation to or from ports of the Philippine Islands, see Proc. No. 2695, set out under section 1394 of
Title 22, Foreign Relations and Intercourse, which proclaimed the independence of the Philippines.]
‘‘[SUSPENSION OF PROVISIONS BY PRESIDENT]
‘‘SEC. 14. Upon the certification of the Secretary of
Transportation that the foreign commerce of the
United States in its competition with that of foreign
nations is prejudiced by the provisions, or any of them,
of title I of this Act, or by the laws of any foreign country or countries relating to the carriage of goods by
sea, the President of the United States may, from time
to time, by proclamation, suspend any or all provisions
of said sections for such periods of time or indefinitely
as may be designated in the proclamation. The President may at any time rescind such suspension of said
sections, and any provisions thereof which may have
been suspended shall thereby be reinstated and again
apply to contracts thereafter made for the carriage of

goods by sea. Any proclamation of suspension or rescission of any such suspension shall take effect on a date
named therein, which date shall be not less than ten
days from the issue of the proclamation.
‘‘Any contract for the carriage of goods by sea, subject to the provisions of this Act, effective during any
period when title I hereof, or any part thereof, are suspended, shall be subject to all provisions of law now or
hereafter applicable to that part of title I which may
have thus been suspended. [As amended Pub. L. 97–31,
§ 12(146), Aug. 6, 1981, 95 Stat. 166.]
‘‘[EFFECTIVE DATE]
‘‘SEC. 15. This Act shall take effect ninety days after
the date of its approval [April 16, 1936]; but nothing in
this Act shall apply during a period not to exceed one
year following its approval to any contract for the carriage of goods by sea, made before the date on which
this Act is approved, nor to any bill of lading or similar
document of title issued, whether before or after such
date of approval in pursuance of any such contract as
aforesaid.
‘‘[SHORT TITLE]
‘‘SEC. 16. This Act may be cited as the ‘Carriage of
Goods by Sea Act’.’’

§ 30702. Application
(a) IN GENERAL.—Except as otherwise provided, this chapter applies to a carrier engaged
in the carriage of goods to or from any port in
the United States.
(b) LIVE ANIMALS.—Sections 30703 and 30704 of
this title do not apply to the carriage of live
animals.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1516.)
HISTORICAL AND REVISION NOTES
Revised
Section
30702(a) ......
30702(b) ......

Source (U.S. Code)
(no source).
46 App.:195.

Source (Statutes at Large)

Feb. 13, 1893, ch. 105, § 7, 27
Stat. 446.

Subsection (a) is added based on language appearing
in various source provisions restated in this chapter.
The word ‘‘carriage’’ is substituted for ‘‘transporting’’,
and the word ‘‘goods’’ is substituted for ‘‘merchandise
or property’’, to use the same terminology as in the
Carriage of Goods By Sea Act (Apr. 16, 1936, ch. 229, 49
Stat. 1207). The words ‘‘to or from any port in the
United States’’ are substituted for ‘‘from or between
ports of the United States and foreign ports’’ in 46 App.
U.S.C. 190 and 193, ‘‘from or between ports of the United
States of America and foreign ports’’ in 46 App. U.S.C.
191, and ‘‘to or from any port in the United States of
America’’ in 46 App. U.S.C. 192, for clarity and consistency. See Knott v. Botany Mills, 179 U.S. 69 (1900).

§ 30703. Bills of lading
(a) ISSUANCE.—On demand of a shipper, the
carrier shall issue a bill of lading or shipping
document.
(b) CONTENTS.—The bill of lading or shipping
document shall include a statement of—
(1) the marks necessary to identify the
goods;
(2) the number of packages, or the quantity
or weight, and whether it is carrier’s or shipper’s weight; and
(3) the apparent condition of the goods.
(c) PRIMA FACIE EVIDENCE OF RECEIPT.—A bill
of lading or shipping document issued under this
section is prima facie evidence of receipt of the
goods described.

§ 30704

TITLE 46—SHIPPING

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1516.)
HISTORICAL AND REVISION NOTES
Revised
Section
30703 ..........

Source (U.S. Code)
46 App.:193.

Source (Statutes at Large)
Feb. 13, 1893, ch. 105, § 4, 27
Stat. 445.

In subsection (a), the words ‘‘On demand of a shipper’’
are added because of the reference to a demand in 46
App. U.S.C. 194. The words ‘‘transporting merchandise
or property from or between ports of the United States
and foreign ports’’ are omitted because of section
30702(a) of the revised title. The word ‘‘lawful’’ (which
modifies ‘‘merchandise’’) is omitted as unnecessary.
In subsection (b)(2), the words ‘‘or weight’’ are added
for consistency with the requirement to state whether
it is the carrier’s or shipper’s weight.
In subsection (b)(3), the word ‘‘order’’ is omitted as
redundant to ‘‘condition’’. The words ‘‘delivered to and
received by . . . for transportation’’ are omitted as unnecessary.

§ 30704. Loading, stowage, custody, care, and delivery
A carrier may not insert in a bill of lading or
shipping document a provision avoiding its liability for loss or damage arising from negligence or fault in loading, stowage, custody,
care, or proper delivery. Any such provision is
void.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1516.)
HISTORICAL AND REVISION NOTES
Revised
Section
30704 ..........

Source (U.S. Code)
46 App.:190.

Source (Statutes at Large)
Feb. 13, 1893, ch. 105, § 1, 27
Stat. 445.

The words ‘‘transporting merchandise or property
from or between ports of the United States and foreign
ports’’ are omitted because of section 30702(a) of the revised title. The words ‘‘may not’’ are substituted for
‘‘It shall not be lawful . . . to’’, and the word ‘‘provision’’ is substituted for ‘‘clause, covenant, or agreement’’, to eliminate unnecessary words. The words
‘‘any and all lawful’’ and ‘‘committed to its or their
charge’’ are omitted as unnecessary. The words ‘‘Any
such provision is void’’ are substituted for ‘‘Any and all
words or clauses of such import inserted in bills of lading or shipping receipts shall be null and void and of no
effect’’ to eliminate unnecessary words.

§ 30705. Seaworthiness
(a) PROHIBITION.—A carrier may not insert in a
bill of lading or shipping document a provision
lessening or avoiding its obligation to exercise
due diligence to—
(1) make the vessel seaworthy; and
(2) properly man, equip, and supply the vessel.
(b) VOIDNESS.—A provision described in subsection (a) is void.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1516.)
HISTORICAL AND REVISION NOTES
Revised
Section
30705 ..........

Source (U.S. Code)
46 App.:191.

Source (Statutes at Large)
Feb. 13, 1893, ch. 105, § 2, 27
Stat. 445.

In subsection (a), before paragraph (1), the words
‘‘transporting merchandise or property from or be-

Page 220

tween ports of the United States of America and foreign ports’’ are omitted because of section 30702(a) of
the revised title. The words ‘‘may not’’ are substituted
for ‘‘It shall not be lawful . . . to’’, the word ‘‘provision’’ is substituted for ‘‘covenant or agreement’’, and
the words ‘‘lessening or avoiding its obligation’’ are
substituted for ‘‘whereby the obligations . . . shall in
any wise be lessened, weakened, or avoided’’, to eliminate unnecessary words.
In paragraph (1), the words ‘‘and capable of performing her intended voyage’’ are omitted as unnecessary.
In paragraph (2), the word ‘‘supply’’ is substituted for
‘‘provision, and outfit’’ to eliminate unnecessary
words.
The words ‘‘or whereby the obligations of the master,
officers, agents, or servants to carefully handle and
stow her cargo and to care for and properly deliver
same’’ are omitted as covered by section 30704 of the revised title.
Subsection (b) is added for clarity and for consistency
with section 30704 of the revised title.

§ 30706. Defenses
(a) DUE DILIGENCE.—If a carrier has exercised
due diligence to make the vessel in all respects
seaworthy and to properly man, equip, and supply the vessel, the carrier and the vessel are not
liable for loss or damage arising from an error in
the navigation or management of the vessel.
(b) OTHER DEFENSES.—A carrier and the vessel
are not liable for loss or damage arising from—
(1) dangers of the sea or other navigable waters;
(2) acts of God;
(3) public enemies;
(4) seizure under legal process;
(5) inherent defect, quality, or vice of the
goods;
(6) insufficiency of package;
(7) act or omission of the shipper or owner of
the goods or their agent; or
(8) saving or attempting to save life or property at sea, including a deviation in rendering
such a service.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1517.)
HISTORICAL AND REVISION NOTES
Revised
Section
30706 ..........

Source (U.S. Code)
46 App.:192.

Source (Statutes at Large)
Feb. 13, 1893, ch. 105, § 3, 27
Stat. 445.

This section is restated as two subsections to clarify
that the exercise of due diligence in making the vessel
seaworthy is a condition only to the defense of error in
navigation or management restated in subsection (a).
See May v. Hamburg-Amerikanische Packetfahrt Aktiengesellschaft (The Isis), 290 U.S. 333, 353 (1933). The words
‘‘transporting merchandise or property to or from any
port in the United States of America’’ are omitted because of section 30702(a) of the revised title.

§ 30707. Criminal penalty
(a) IN GENERAL.—A carrier that violates this
chapter shall be fined under title 18.
(b) LIEN.—The amount of the fine and costs for
the violation constitute a lien on the vessel engaged in the carriage. 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.
(c) DISPOSITION OF FINE.—Half of the fine shall
go to the person injured by the violation and
half to the United States Government.

Page 221

HISTORICAL AND REVISION NOTES

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1517.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

30707 ..........

46 App.:194.

Source (Statutes at Large)

CHAPTER 309—SUITS IN ADMIRALTY
AGAINST THE UNITED STATES
Sec.

30915.
30916.
30917.
30918.

Short title.
Definition.
Waiver of immunity.
Exclusive remedy.
Period for bringing action.
Venue.
Procedure for hearing and determination.
Exemption from arrest or seizure.
Security.
Exoneration and limitation.
Costs and interest.
Arbitration, compromise, or settlement.
Payment of judgment or settlement.
Release of privately owned vessel after arrest
or attachment.
Seizures and other proceedings in foreign jurisdictions.
Recovery by the United States for salvage
services.
Disposition of amounts recovered by the
United States.
Reports.

§ 30901. Short title
This chapter may be cited as the ‘‘Suits in Admiralty Act’’.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1517.)
HISTORICAL AND REVISION NOTES
Revised
Section
30901 ..........

Source (U.S. Code)

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

30902 ..........

46 App.:741
(11th–26th words).

Mar. 9, 1920, ch. 95, § 1
(11th–26th words), 41 Stat.
525.

Feb. 13, 1893, ch. 105, § 5, 27
Stat. 446.

In subsection (a), the words ‘‘and who refuses to issue
on demand the bill of lading herein provided for’’ are
omitted as unnecessary. The words ‘‘shall be fined
under title 18’’ are substituted for ‘‘shall be liable to a
fine not exceeding $2,000’’ because of chapter 227 of title
18.
In subsection (b), the words ‘‘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’’ are substituted for ‘‘such vessel may be libeled therefor in any district court of the United
States’’ for clarity and to modernize the language.

30901.
30902.
30903.
30904.
30905.
30906.
30907.
30908.
30909.
30910.
30911.
30912.
30913.
30914.

§ 30904

TITLE 46—SHIPPING

Source (Statutes at Large)

46 App.:741 note.

SHORT TITLE
Act Mar. 9, 1920, ch. 95, 41 Stat. 525, which enacted
chapter 20 (§ 741 et seq.) of the former Appendix to this
title, was popularly known as the ‘‘Suits in Admiralty
Act’’, prior to being repealed and restated in this chapter by Pub. L. 109–304, §§ 6(c), 19, Oct. 6, 2006, 120 Stat.
1509, 1710.

The term ‘‘federally-owned corporation’’ is defined in
this section and used in this chapter to avoid repeating
the substance of the definition in several sections in
this chapter. The words ‘‘or its representatives’’ are
omitted as unnecessary.

§ 30903. Waiver of immunity
(a) IN GENERAL.—In a case in which, if a vessel
were privately owned or operated, or if cargo
were privately owned or possessed, or if a private person or property were involved, a civil
action in admiralty could be maintained, a civil
action in admiralty in personam may be brought
against the United States or a federally-owned
corporation. In a civil action in admiralty
brought by the United States or a federallyowned corporation, an admiralty claim in personam may be filed or a setoff claimed against the
United States or corporation.
(b) NON-JURY.—A claim against the United
States or a federally-owned corporation under
this section shall be tried without a jury.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1518.)
HISTORICAL AND REVISION NOTES
Revised
Section
30903 ..........

Source (U.S. Code)
46 App.:742 (1st, 3d
sentences).

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 2 (1st,
3d sentences), 41 Stat. 525;
Pub. L. 86–770, § 3, Sept. 13,
1960, 74 Stat. 912; Pub. L.
104–324, title XI, § 1105,
Oct. 19, 1996, 110 Stat. 3967.

In subsection (a), the words ‘‘civil action’’ are substituted for ‘‘proceeding’’ and ‘‘libel’’ because of rule 2
of the Federal Rules of Civil Procedure (28 App. U.S.C.)
and for consistency in the chapter. The words ‘‘civil action in admiralty in personam’’ are substituted for
‘‘any appropriate nonjury proceeding in personam’’ for
clarity. The words ‘‘in rem or in personam in any district’’ are omitted as unnecessary. The words ‘‘admiralty claim’’ are substituted for ‘‘cross libel’’ for consistency in this chapter and with the various means of
asserting a claim (such as by counterclaim or crossclaim) allowed by the Federal Rules of Civil Procedure.
The words ‘‘with the same force and effect as if the
libel had been filed by a private party’’ are omitted as
unnecessary.
Subsection (b) is substituted for the word ‘‘nonjury’’
to clarify that the nonjury requirement applies to any
claim against the United States or a federally-owned
corporation under this section regardless of which
party brings the action.

§ 30904. Exclusive remedy

In this chapter, the term ‘‘federally-owned
corporation’’ means a corporation in which the
United States owns all the outstanding capital
stock.

If a remedy is provided by this chapter, it
shall be exclusive of any other action arising
out of the same subject matter against the officer, employee, or agent of the United States or
the federally-owned corporation whose act or
omission gave rise to the claim.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1517.)

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1518.)

§ 30902. Definition

§ 30905

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

30904 ..........

46 App.:745 (1st proviso).

Mar. 9, 1920, ch. 95, § 5 (1st
proviso), 41 Stat. 526; June
30, 1932, ch. 315, 47 Stat.
420; Dec. 13, 1950, ch. 1136,
64 Stat. 1112.

The words ‘‘officer, employee, or agent of the United
States or the federally-owned corporation’’ are substituted for ‘‘agent or employee of the United States or
of any incorporated or unincorporated agency thereof’’
for consistency in this chapter and to eliminate unnecessary words.

(B) it appears that an action in rem could
have been maintained had the vessel or
cargo been privately owned and possessed.
(2) EFFECT ON RELIEF IN PERSONAM.—An election under paragraph (1) does not prevent the
plaintiff from seeking relief in personam in
the same action.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1518.)
HISTORICAL AND REVISION NOTES
Revised
Section

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1518.)
HISTORICAL AND REVISION NOTES
Revised
Section
30905 ..........

Source (U.S. Code)
46 App.:745 (words
before 1st proviso).

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 5 (words
before 1st proviso), 41
Stat. 526; June 30, 1932, ch.
315, 47 Stat. 420; Dec. 13,
1950, ch. 1136, 64 Stat. 1112.

§ 30906. Venue
(a) IN GENERAL.—A civil action under this
chapter shall be brought in the district court of
the United States for the district in which—
(1) any plaintiff resides or has its principal
place of business; or
(2) the vessel or cargo is found.
(b) TRANSFER.—On a motion by a party, the
court may transfer the action to any other district court of the United States.

Source (U.S. Code)

30907(a) ......

46 App.:743 (1st, 4th
sentences).

30907(b) ......

46 App.:743 (5th, 6th
sentences).

§ 30905. Period for bringing action
A civil action under this chapter must be
brought within 2 years after the cause of action
arose.

Page 222

§ 30908. Exemption from arrest or seizure
The following are not subject to arrest or seizure by judicial process in the United States:
(1) A vessel owned by, possessed by, or operated by or for the United States or a federallyowned corporation.
(2) Cargo owned or possessed by the United
States or a federally-owned corporation.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1518.)
HISTORICAL AND REVISION NOTES
Revised
Section
30908 ..........

Source (U.S. Code)
46 App.:741 (less
11th–26th words).

HISTORICAL AND REVISION NOTES
Source (U.S. Code)

30906(a) ......

46 App.:742 (2d sentence).

30906(b) ......

46 App.:742 (last
sentence).

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 2 (2d,
last sentences), 41 Stat.
526.

In subsection (a)(1), the words ‘‘in the United States’’
are omitted as unnecessary.
In subsection (a)(2), the words ‘‘charged with liability’’ are omitted as unnecessary.
In subsection (b), the words ‘‘in the discretion of the
court’’ are omitted as unnecessary. For general change
of venue provision, see 28 U.S.C. 1404.

§ 30907. Procedure for hearing and determination
(a) IN GENERAL.—A civil action under this
chapter shall proceed and be heard and determined according to the principles of law and the
rules of practice applicable in like cases between
private parties.
(b) IN REM.—
(1) REQUIREMENTS.—The action may proceed
according to the principles of an action in rem
if—
(A) the plaintiff elects in the complaint;
and

Mar. 9, 1920, ch. 95, § 3 (1st,
4th–6th
sentences),
41
Stat. 526.

In subsection (a), the text of 46 App. U.S.C. 743 (4th
sentence) is omitted as unnecessary.
In subsection (b)(1)(A), the words ‘‘plaintiff’’ and
‘‘complaint’’ are substituted for ‘‘libelant’’ and ‘‘libel’’,
respectively, for consistency with the Federal Rules of
Civil Procedure (28 App. U.S.C.).
In subsection (b)(2), the words ‘‘in any proper case’’
are omitted as unnecessary.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1518.)

Revised
Section

Source (Statutes at Large)

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 1 (less
11th–26th words), 41 Stat.
525; Sept. 26, 1950, ch. 1049,
§ 2(a)(2), 64 Stat. 1038; Pub.
L. 96–70, § 3(b)(5), Sept. 27,
1979, 93 Stat. 455.

The words ‘‘a federally-owned corporation’’ are substituted for ‘‘any corporation in which the United
States or its representatives shall own the entire outstanding capital stock’’ because of the definition of
‘‘federally-owned corporation’’ in section 30902 of the
revised title. The words ‘‘after March 9, 1920’’ are omitted as obsolete. The words ‘‘in view of the provision
herein made for a libel in personam’’ are omitted as unnecessary. The words ‘‘or its possessions’’ are omitted
because of the definition of ‘‘United States’’ in chapter
1 of the revised title. The words ‘‘Provided, That this
chapter shall not apply to the Panama Canal Commission’’ are omitted because the Commission has been
dissolved. See 22 U.S.C. 3714a.

§ 30909. Security
Neither the United States nor a federallyowned corporation may be required to give a
bond or admiralty stipulation in a civil action
under this chapter.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1519.)
HISTORICAL AND REVISION NOTES
Revised
Section
30909 ..........

Source (U.S. Code)
46 App.:743 (last
sentence).

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 3 (last
sentence), 41 Stat. 526;
Pub. L. 97–31, § 12(25)(A),
Aug. 6, 1981, 95 Stat. 155.

Page 223

§ 30915

TITLE 46—SHIPPING

The words ‘‘civil action’’ are substituted for ‘‘proceeding’’ for consistency in this chapter and with rule
2 of the Federal Rules of Civil Procedure (28 App.
U.S.C.).

HISTORICAL AND REVISION NOTES
Revised
Section
30912 ..........

Source (U.S. Code)
46 App.:749.

§ 30910. Exoneration and limitation
The United States is entitled to the exemptions from and limitations of liability provided
by law to an owner, charterer, operator, or
agent of a vessel.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1519.)
HISTORICAL AND REVISION NOTES
Revised
Section
30910 ..........

Source (U.S. Code)
46 App.:746.

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 6, 41
Stat. 527.

§ 30911. Costs and interest
(a) IN GENERAL.—A judgment against the
United States or a federally-owned corporation
under this chapter may include costs and interest at the rate of 4 percent per year until satisfied. Interest shall run as ordered by the court,
except that interest is not allowable for the period before the action is filed.
(b) CONTRACT PROVIDING FOR INTEREST.—Notwithstanding subsection (a), if the claim is
based on a contract providing for interest, interest may be awarded at the rate and for the period provided in the contract.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1519.)
HISTORICAL AND REVISION NOTES
Revised
Section
30911 ..........

Source (U.S. Code)
46 App.:743 (2d, 3d
sentences).
46 App.:745 (last
proviso).

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 3 (2d, 3d
sentences), 41 Stat. 526.
Mar. 9, 1920, ch. 95, § 5 (last
proviso), 41 Stat. 526; June
30, 1932, ch. 315, 47 Stat.
420; Dec. 13, 1950, ch. 1136,
64 Stat. 1112.

In subsection (a), the words ‘‘and when the decree is
for a money judgment’’ are omitted as unnecessary.
The words ‘‘except that interest is not allowable for the
period before the action is filed’’ are substituted for
‘‘And provided further, That after June 30, 1932, no interest shall be allowed on any claim prior to the time
when suit on such claim is brought as authorized by
section 742 of this Appendix’’ to eliminate unnecessary
words.
Subsection (b) is substituted for ‘‘or at any higher
rate which shall be stipulated in any contract upon
which such decree shall be based’’ in 46 App. U.S.C. 743
and ‘‘unless upon a contract expressly stipulating for
the payment of interest’’ in 46 App. U.S.C. 745 (last proviso) for clarity and consistency.

§ 30912. Arbitration, compromise, or settlement
The Secretary of a department of the United
States Government, or the board of trustees of a
federally-owned corporation, may arbitrate,
compromise, or settle a claim under this chapter.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1519.)

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 9, 41
Stat. 527; Pub. L. 92–417,
§ 3, Aug. 29, 1972, 86 Stat.
656;
Pub.
L.
97–31,
§ 12(25)(C), Aug. 6, 1981, 95
Stat. 155.

The words ‘‘claim under this chapter’’ are substituted
for ‘‘claim in which suit will lie under the provisions of
sections 742, 744, and 750 of this Appendix’’ to eliminate
unnecessary words.

§ 30913. Payment of judgment or settlement
(a) IN GENERAL.—The proper accounting officer of the United States shall pay a final judgment, arbitration award, or settlement under
this chapter on presentation of an authenticated
copy.
(b) SOURCE OF PAYMENT.—Payment shall be
made from an appropriation or fund available
specifically for the purpose. If no appropriation
or fund is specifically available, there is hereby
appropriated, out of money in the Treasury not
otherwise appropriated, an amount sufficient to
pay the judgment, award, or settlement.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1519.)
HISTORICAL AND REVISION NOTES
Revised
Section
30913 ..........

Source (U.S. Code)
46 App.:748.

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 8, 41
Stat. 527.

§ 30914. Release of privately owned vessel after
arrest or attachment
If a privately owned vessel not in the possession of the United States or a federally-owned
corporation is arrested or attached in a civil action arising or alleged to have arisen from prior
ownership, possession, or operation by the
United States or corporation, the vessel shall be
released without bond or stipulation on a statement by the United States, through the Attorney General or other authorized law officer, that
the United States is interested in the action, desires release of the vessel, and assumes liability
for the satisfaction of any judgment obtained by
the plaintiff. After the vessel is released, the action shall proceed against the United States in
accordance with this chapter.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1519.)
HISTORICAL AND REVISION NOTES
Revised
Section
30914 ..........

Source (U.S. Code)
46 App.:744.

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 4, 41
Stat. 526.

The words ‘‘on a statement’’ are substituted for
‘‘upon the suggestion’’ as more appropriate.

§ 30915. Seizures and other proceedings in foreign jurisdictions
(a) IN GENERAL.—If a vessel or cargo described
in section 30908 or 30914 of this title is arrested,
attached, or otherwise seized by judicial process
in a foreign country, or if an action is brought
in a court of a foreign country against the mas-

§ 30916

TITLE 46—SHIPPING

ter of such a vessel for a claim arising from the
ownership, possession, or operation of the vessel, or the ownership, possession, or carriage of
such cargo, the Secretary of State, on request of
the Attorney General or another officer authorized by the Attorney General, may direct the
United States consul residing at or nearest the
place at which the action was brought—
(1) to claim the vessel or cargo as immune
from arrest, attachment, or other seizure, and
to execute an agreement, stipulation, bond, or
undertaking, for the United States or federally-owned corporation, for the release of the
vessel or cargo and the prosecution of any appeal; or
(2) if an action has been brought against the
master of such a vessel, to enter the appearance of the United States or corporation and
to pledge the credit of the United States or
corporation to the payment of any judgment
and costs in the action.
(b) ARRANGING BOND OR STIPULATION.—The Attorney General may—
(1) arrange with a bank, surety company, or
other person, whether in the United States or
a foreign country, to execute a bond or stipulation; and
(2) pledge the credit of the United States to
secure the bond or stipulation.
(c) PAYMENT OF JUDGMENT.—The appropriate
accounting officer of the United States or corporation may pay a judgment in an action described in subsection (a) on presentation of a
copy of the judgment if certified by the clerk of
the court and authenticated by—
(1) the certificate and seal of the United
States consul claiming the vessel or cargo, or
by the consul’s successor; and
(2) the certificate of the Secretary as to the
official capacity of the consul.
(d) RIGHT TO CLAIM IMMUNITY NOT AFFECTED.—
This section does not affect the right of the
United States to claim immunity of a vessel or
cargo from foreign jurisdiction.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1519.)
HISTORICAL AND REVISION NOTES

Page 224

§ 30916. Recovery by the United States for salvage services
(a) CIVIL ACTION.—The United States, and the
crew of a merchant vessel owned or operated by
the United States, or a federally-owned corporation, may bring a civil action to recover for salvage services provided by the vessel and crew.
(b) DEPOSIT OF AMOUNTS RECOVERED.—Any
amount recovered under this section by the
United States for its own benefit, and not for
the benefit of the crew, shall be deposited in the
Treasury to the credit of the department of the
United States Government, or the corporation,
having control of the possession or operation of
the vessel.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1520.)
HISTORICAL AND REVISION NOTES
Revised
Section
30916 ..........

Source (U.S. Code)
46 App.:750.

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 10, 41
Stat. 528; Pub. L. 97–31,
§ 12(25)(D), Aug. 6, 1981, 95
Stat. 155.

In subsection (a), the words ‘‘may bring a civil action
to recover’’ are substituted for ‘‘shall have the right to
collect and sue’’ for consistency in this chapter and to
eliminate unnecessary words.

§ 30917. Disposition of amounts recovered by the
United States
Amounts recovered in a civil action brought
by the United States on a claim arising from the
ownership, possession, or operation of a merchant vessel, or the ownership, possession, or
carriage of cargo, shall be deposited in the
Treasury to the credit of the department of the
United States Government, or the federallyowned corporation, having control of the vessel
or cargo, for reimbursement of the appropriation, insurance fund, or other fund from which
the compensation for which the judgment was
recovered was or will be paid.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1520.)
HISTORICAL AND REVISION NOTES

Revised
Section
30915 ..........

Source (U.S. Code)
46 App.:747.

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 7, 41
Stat. 527; Pub. L. 97–31,
§ 12(25)(B), Aug. 6, 1981, 95
Stat. 155.

In this section, references to the Maritime Administration are omitted as unnecessary.
In subsection (a), before paragraph (1), the words ‘‘or
in connection with’’, ‘‘of the United States in his discretion’’, and ‘‘duly’’ are omitted as unnecessary. In
paragraph (1), the words ‘‘as by said court required’’ are
omitted as unnecessary.
In subsection (b)(1), the words ‘‘firm, or corporation’’
are omitted as included in ‘‘person’’ as defined in 1
U.S.C. 1.
Subsection (b)(2) is substituted for ‘‘to pledge the
credit of the United States to the indemnification of
such surety or stipulator as may be required to secure
the execution of such bond or stipulation’’ to eliminate
unnecessary words.
In subsection (c), the words ‘‘may pay’’ are substituted for ‘‘presentation . . . shall be sufficient evidence . . . for the allowance and payment’’ to eliminate
unnecessary words.

Revised
Section
30917 ..........

Source (U.S. Code)
46 App.:751.

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 11, 41
Stat. 528; Pub. L. 97–31,
§ 12(25)(D), Aug. 6, 1981, 95
Stat. 155.

The words ‘‘or in connection with’’ and ‘‘with respect
to which such cause of action arises’’ are omitted as
unnecessary.

§ 30918. Reports
The Secretary of each department of the
United States Government, and the board of
trustees of each federally-owned corporation,
shall report to Congress at each session thereof
all arbitration awards and settlements agreed to
under this chapter since the previous session, for
which the time to appeal has expired or been
waived.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1521.)

Page 225
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

30918 ..........

46 App.:752.

Source (Statutes at Large)
Mar. 9, 1920, ch. 95, § 12, 41
Stat. 528; Aug. 30, 1954, ch.
1076, § 1(26), 68 Stat. 968;
Pub. L. 97–31, § 12(25)(E),
Aug. 6, 1981, 95 Stat. 155.

CHAPTER 311—SUITS INVOLVING PUBLIC
VESSELS
Sec.

31101.
31102.
31103.
31104.
31105.
31106.
31107.
31108.
31109.
31110.
31111.
31112.
31113.

§ 31105

TITLE 46—SHIPPING

Short title.
Waiver of immunity.
Applicable procedure.
Venue.
Security when counterclaim filed.
Exoneration and limitation.
Interest.
Arbitration, compromise, or settlement.
Payment of judgment or settlement.
Subpoenas to officers or members of crew.
Claims by nationals of foreign countries.
Lien not recognized or created.
Reports.

§ 31101. Short title
This chapter may be cited as the ‘‘Public Vessels Act’’.

In subsection (a), the words ‘‘Provided, That the cause
of action arose after the 6th day of April, 1920’’ are
omitted as unnecessary.
In subsection (b), the words ‘‘in rem or in personam’’
are omitted as unnecessary. The words ‘‘file a counterclaim in personam, or claim a setoff’’ are substituted
for ‘‘file a cross libel in personam or claim a set-off or
counterclaim’’ to conform to the terminolgy in the
Federal Rules of Civil Procedure and to eliminate unnecessary words. The words ‘‘for damages arising out of
the same subject matter’’ are substituted for ‘‘in such
suit for and on account of any damages arising out of
the same subject matter or cause of action’’ to eliminate unnecessary words.

§ 31103. Applicable procedure
A civil action under this chapter is subject to
the provisions of chapter 309 of this title except
to the extent inconsistent with this chapter.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1521.)
HISTORICAL AND REVISION NOTES
Revised
Section
31103 ..........

Source (U.S. Code)
46 App.:782 (last
sentence words
before last
comma).

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 2 (last
sentence words before last
comma), 43 Stat. 1112.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1521.)
HISTORICAL AND REVISION NOTES
Revised
Section
31101 ..........

Source (U.S. Code)

Source (Statutes at Large)

46 App.:781 note.

SHORT TITLE
Act of March 3, 1925, ch. 428, 43 Stat. 1112, which enacted chapter 22 (§ 781 et seq.) of the former Appendix to
this title, was popularly known as the ‘‘Public Vessels
Act’’, prior to being repealed and restated in this chapter by Pub. L. 109–304, §§ 6(c), 19, Oct. 6, 2006, 120 Stat.
1509, 1710.

§ 31102. Waiver of immunity
(a) IN GENERAL.—A civil action in personam in
admiralty may be brought, or an impleader
filed, against the United States for—
(1) damages caused by a public vessel of the
United States; or
(2) compensation for towage and salvage
services, including contract salvage, rendered
to a public vessel of the United States.
(b) COUNTERCLAIM OR SETOFF.—If the United
States brings a civil action in admiralty for
damages caused by a privately owned vessel, the
owner of the vessel, or the successor in interest,
may file a counterclaim in personam, or claim a
setoff, against the United States for damages
arising out of the same subject matter.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1521.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

31102(a) ......

46 App.:781.

31102(b) ......

46 App.:783 (words
before proviso).

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 1, 43
Stat. 1112.
Mar. 3, 1925, ch. 428, § 3
(words before proviso), 43
Stat. 1112.

In this section, the words ‘‘civil action’’ are substituted for ‘‘libel’’ because of rule 2 of the Federal
Rules of Civil Procedure (28 App. U.S.C.).

§ 31104. Venue
(a) IN GENERAL.—A civil action under this
chapter shall be brought in the district court of
the United States for the district in which the
vessel or cargo is found within the United
States.
(b) VESSEL OR CARGO OUTSIDE TERRITORIAL
WATERS.—If the vessel or cargo is outside the
territorial waters of the United States—
(1) the action shall be brought in the district
court of the United States for any district in
which any plaintiff resides or has an office for
the transaction of business; or
(2) if no plaintiff resides or has an office for
the transaction of business in the United
States, the action may be brought in the district court of the United States for any district.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1521.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

31104 ..........

46 App.:782 (1st sentence).

Mar. 3, 1925, ch. 428, § 2 (1st
sentence), 43 Stat. 1112.

In subsection (a), the words ‘‘charged with creating
the liability’’ are omitted as unnecessary.
In subsection (b)(2), the words ‘‘in the United States’’
are omitted as unnecessary.

§ 31105. Security when counterclaim filed
If a counterclaim is filed for a cause of action
for which the original action is filed under this
chapter, the respondent to the counterclaim
shall give security in the usual amount and
form to respond to the counterclaim, unless the
court for cause shown orders otherwise. The proceedings in the original action shall be stayed
until the security is given.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1522.)

§ 31106

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
31105 ..........

Source (U.S. Code)
46 App.:783 (proviso).

Page 226
HISTORICAL AND REVISION NOTES

Source (Statutes at Large)

Revised
Section

Mar. 3, 1925, ch. 428, § 3 (proviso), 43 Stat. 1112.

31109 ..........

Source (U.S. Code)
46 App.:787.

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 7, 43
Stat. 1113.

The word ‘‘counterclaim’’ is substituted for ‘‘crosslibel’’, and the words ‘‘original action’’ are substituted
for ‘‘original libel’’, to conform to the terminolgy in
the Federal Rules of Civil Procedure (28 App. U.S.C.).

Reference to an arbitration award is added for consistency with sections 30912 and 31108 of the revised
title.

§ 31106. Exoneration and limitation

§ 31110. Subpoenas to officers or members of
crew

The United States is entitled to the exemptions from and limitations of liability provided
by law to an owner, charterer, operator, or
agent of a vessel.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1522.)
HISTORICAL AND REVISION NOTES
Revised
Section
31106 ..........

Source (U.S. Code)
46 App.:789.

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 9, 43
Stat. 1113.

An officer or member of the crew of a public
vessel may not be subpoenaed in a civil action
under this chapter without the consent of—
(1) the Secretary of the department or the
head of the independent establishment having
control of the vessel at the time the cause of
action arose; or
(2) the master or commanding officer of the
vessel at the time the subpoena is issued.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1522.)
HISTORICAL AND REVISION NOTES

§ 31107. Interest

Revised
Section

A judgment in a civil action under this chapter may not include interest for the period before the judgment is issued unless the claim is
based on a contract providing for interest.

31110 ..........

Source (U.S. Code)
46 App.:784.

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 4, 43
Stat. 1112.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1522.)

§ 31111. Claims by nationals of foreign countries

HISTORICAL AND REVISION NOTES

A national of a foreign country may not maintain a civil action under this chapter unless it
appears to the satisfaction of the court in which
the action is brought that the government of
that country, in similar circumstances, allows
nationals of the United States to sue in its
courts.

Revised
Section
31107 ..........

Source (U.S. Code)
46 App.:782 (last
sentence words
after last
comma).

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 2 (last
sentence words after last
comma), 43 Stat. 1112.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1522.)
§ 31108. Arbitration, compromise, or settlement
The Attorney General may arbitrate, compromise, or settle a claim under this chapter if
a civil action based on the claim has been commenced.

HISTORICAL AND REVISION NOTES
Revised
Section
31111 ..........

Source (U.S. Code)
46 App.:785.

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 5, 43
Stat. 1113.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1522.)
HISTORICAL AND REVISION NOTES
Revised
Section
31108 ..........

Source (U.S. Code)
46 App.:786.

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 6, 43
Stat. 1113.

§ 31112. Lien not recognized or created
This chapter shall not be construed as recognizing the existence of or as creating a lien
against a public vessel of the United States.
(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1522.)

The words ‘‘claim under this chapter’’ are substituted
for ‘‘claim on which a libel or cross libel would lie
under the provisions of this chapter’’ to eliminate unnecessary words.

HISTORICAL AND REVISION NOTES
Revised
Section
31112 ..........

Source (U.S. Code)
46 App.:788.

§ 31109. Payment of judgment or settlement

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 8, 43
Stat. 1113.

The proper accounting officer of the United
States shall pay a final judgment, arbitration
award, or settlement under this chapter on presentation of an authenticated copy. Payment
shall be made from any money in the Treasury
appropriated for the purpose.

The Attorney General shall report to Congress
at each session thereof all claims settled under
this chapter.

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1522.)

(Pub. L. 109–304, § 6(c), Oct. 6, 2006, 120 Stat. 1523.)

§ 31113. Reports

Page 227
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

31113 ..........

46 App.:790.

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 10, 43
Stat. 1113; Aug. 30, 1954,
ch. 1076, § 1(26), 68 Stat.
968.

CHAPTER 313—COMMERCIAL INSTRUMENTS
AND MARITIME LIENS
SUBCHAPTER I—GENERAL
Sec.

31301.
31302.

Definitions.
Availability of instruments, copies, and information.
31303.
Certain civil actions not authorized.
31304.
Liability for noncompliance.
31305.
Waiver of lien rights.
31306.
Declaration of citizenship.
31307.
State statutes superseded.
31308.
Secretary of Commerce or Transportation as
mortgagee.
31309.
General civil penalty.
SUBCHAPTER II—COMMERCIAL INSTRUMENTS
31321.
31322.
31323.
31324.
31325.
31326.
31327.
[31328.
31329.
31330.
31341.
31342.
31343.

§ 31301

TITLE 46—SHIPPING

Filing, recording, and discharge.
Preferred mortgages.
Disclosing and incurring obligations before
executing preferred mortgages.
Retention and examination of mortgages of
vessels covered by preferred mortgages.
Preferred mortgage liens and enforcement.
Court sales to enforce preferred mortgage
liens and maritime liens and priority of
claims.
Forfeiture of mortgagee interest.
Repealed.]
Court sales of documented vessels.
Penalties.
SUBCHAPTER III—MARITIME LIENS
Persons presumed to have authority to procure necessaries.
Establishing maritime liens.
Recording and discharging notices of claim of
maritime lien.
HISTORICAL AND REVISION NOTES

Section 101 [102] of H.R. 3105 [became Pub. L. 100–710]
revises, consolidates, and enacts certain general and
permanent laws of the United States related to commercial instruments and liens and public vessels and
goods. It amends subtitle III of title 46, United States
Code by striking at the end ‘‘Chapters 313, 315—Reserved’’ and substituting ‘‘Chapter 313—Commercial Instruments and Maritime Liens’’. Chapter 313 is essentially a codification of the Ship Mortgage Act, 1920 (46
App. U.S.C. 911–984). H.R. 3105 is the second step in the
process of enacting laws compiled in title 46 of the Code
into positive law. The first step in the codification
process began in 1983 when certain general and permanent laws related to vessels and seamen were enacted
as subtitle II of the title 46, United States Code.
HOUSE FLOOR STATEMENT

Section 102 of this bill adds a new subtitle III to title
46, which contains a codification of the Ship Mortgage
Act, 1920 and other related provisions. A previous version of this codification and the remaining sections of
the bill were recently reported by the Merchant Marine
and Fisheries Committee in H.R. 3105 (H. Rept. 100–918).
The significant additions or changes by this provision
to the version of H.R. 3105 reported by the Merchant
Marine and Fisheries Committee are explained as follows: [see sections 31305, 31321, 31322, 31325, 31329, 31330,
31343 of this title].
AMENDMENTS
2002—Pub. L. 107–295, title II, § 205(a)(2), Nov. 25, 2002,
116 Stat. 2096, substituted ‘‘notices of claim of mari-

time lien’’ for ‘‘liens on preferred mortgage vessels’’ in
item 31343.
1996—Pub. L. 104–324, title XI, § 1113(b)(3), Oct. 19, 1996,
110 Stat. 3970, struck out item 31328 ‘‘Limitations on
parties serving as trustees of mortgaged vessel interests’’.

SUBCHAPTER I—GENERAL
§ 31301. Definitions
In this chapter—
(1) ‘‘acknowledge’’ means making—
(A) an acknowledgment or notarization before a notary public or other official authorized by a law of the United States or a State
to take acknowledgments of deeds; or
(B) a certificate issued under the Hague
Convention Abolishing the Requirement of
Legalisation for Foreign Public Documents,
1961;
(2) ‘‘district court’’ means—
(A) a district court of the United States
(as defined in section 451 of title 28);
(B) the District Court of Guam;
(C) the District Court of the Virgin Islands;
(D) the District Court for the Northern
Mariana Islands;
(E) the High Court of American Samoa;
and
(F) any other court of original jurisdiction
of a territory or possession of the United
States;
(3) ‘‘mortgagee’’ means—
(A) a person to whom property is mortgaged; or
(B) when a mortgage on a vessel involves a
trust, the trustee that is designated in the
trust agreement;
(4) ‘‘necessaries’’ includes repairs, supplies,
towage, and the use of a dry dock or marine
railway;
(5) ‘‘preferred maritime lien’’ means a maritime lien on a vessel—
(A) arising before a preferred mortgage
was filed under section 31321 of this title;
(B) for damage arising out of maritime
tort;
(C) for wages of a stevedore when employed directly by a person listed in section
31341 of this title;
(D) for wages of the crew of the vessel;
(E) for general average; or
(F) for salvage, including contract salvage;
(6) ‘‘preferred mortgage’’—
(A) means a mortgage that is a preferred
mortgage under section 31322 of this title;
and
(B) also means in sections 31325 and 31326
of this title, a mortgage, hypothecation, or
similar charge that is established as a security on a foreign vessel if the mortgage,
hypothecation, or similar charge was executed under the laws of the foreign country
under whose laws the ownership of the vessel
is documented and has been registered under
those laws in a public register at the port of
registry of the vessel or at a central office;
and
(7) ‘‘Secretary’’ means the Secretary of the
Department of Homeland Security, unless
otherwise noted.

§ 31302

TITLE 46—SHIPPING

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4739; Pub. L. 111–281, title IX, § 913(a)(2)–(4),
Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31301(1), (2) ..................................
31301(3) ........................................
31301(4) ........................................
31301(5) ........................................
31301(6)(A) ...................................
31301(6)(B) ...................................

Source section (U.S. Code)
New
46:911(5)
Derived from 46:971–974
46:953(a)
46:922(b)
46:951 (2d par. less proviso)

Section 31301(1) defines the term ‘‘acknowledge’’.
This paragraph makes a substantive change to law to
expand the current law by allowing a notarization
under State law, a form prescribed by the Secretary, as
well as a certificate issued under the Hague Convention
Abolishing the Requirement of Legalisation for Foreign Public Documents, 1961.
Section 31301(2) defines ‘‘district court’’. This paragraph makes a substantive change to law by including
the District Court of Guam, the District Court of the
Virgin Islands, the District Court of the Northern Mariana Islands, the High Court of American Samoa, and
other Federal territorial courts as they are established.
Under current law, only the district courts of the
United States have jurisdiction under the Ship Mortgage Act, 1920.
Section 31301(3) defines ‘‘mortgagee’’ as a person to
whom property is mortgaged and the trustee authorized under section 31328 that is designated in the trust
agreement.
Section 31301(4) defines ‘‘necessaries’’ to include repairs, supplies, towage, and the use of a drydock and
marine railway for a vessel. As in all codifications, the
term ‘‘includes’’ means ‘‘includes but is not limited to’’
and, therefore, is not intended to be an exclusive listing
of those items that a court has determined or may determine as falling within the meaning of the term
‘‘other necessaries’’ as contained in current law. The
definition is new, is based on 46 App. U.S.C. 971–974, and
makes no substantive change to law.
Section 31301(5) defines ‘‘preferred maritime lien’’ to
mean a lien on a vessel that arises before a preferred
mortgage was filed under section 31321 of this title for
damages arising out of maritime tort, stevedore wages,
crew wages, general average, and salvage. The definition is new and is based on 46 App. U.S.C. 953(a). The
only substantive change to law made by this paragraph
is to change the effective date from the day the preferred mortgage is recorded and endorsed to when it is
filed. This change is in keeping with other changes
with regard to filing. The term ‘‘duly and validly’’ that
is in existing law is not used because it is unnecessary.
An instrument that is not ‘‘duly and validly’’ executed
is not executed under the laws of the foreign country.
This makes no substantive change to law.
Section 31301(6)(A) defines ‘‘preferred mortgage’’ to
mean a mortgage that meets the requirements of section 31322. This clause makes no substantive change to
law.
Section 31301(6)(B) defines ‘‘preferred mortgage’’ to
also mean a mortgage on a documented foreign vessel
that is preferred under sections 31325 and 31326 for purposes of enforcement of the outstanding mortgage indebtedness. Preference is only granted if the mortgage
is executed under the laws of a foreign country, registered under those laws in a public register at the port
of registry or at a central office. The use of the word
‘‘established’’ in place of ‘‘created’’ in the current law
or ‘‘effective’’ as used in the treaties is not intended to
make any substantive change to law. The only substantive changes to law made by this clause are the
elimination of the exemption of foreign vessels of less
than 200 gross tons, and clarification of the rule of interpretation that if a vessel is registered in one country, but is permitted to fly temporarily the flag of another country (such as through a demise charter), it is
the law of the country in which the ownership of the

Page 228

vessel is documented that is used to determine when a
mortgage attains preferred status.
AMENDMENTS
2010—Par. (7). Pub. L. 111–281 added par. (7).
EFFECTIVE DATE
Pub. L. 100–710, title I, § 107, Nov. 23, 1988, 102 Stat.
4752, provided that:
‘‘(a) This title [see Tables for classification] and
amendments made by this title take effect on January
1, 1989. However, sections 31321 and 31322 of title 46 (as
enacted by section 102 of this Act), United States Code
(as sections 31321 and 32322 [probably should be 31322]
apply to vessels for which an application for documentation has been filed), take effect on January 1,
1990.
‘‘(b) An instrument filed before January 1, 1989, but
not recorded before that date, is deemed to comply
with section 31321 of title 46, United States Code, if it
is in substantial compliance with the provisions in that
section that had corresponding requirements under the
law on December 31, 1988. However, the mortgage may
not become a preferred mortgage until the vessel is
documented.
‘‘(c) This title and the amendments made by this title
do not affect the validity of any instrument filed or recorded before January 1, 1989, if there was a corresponding requirement under the law on December 31, 1988.
‘‘(d) An instrument filed or recorded before January
1, 1989, is deemed to comply with any new requirement
under chapter 313 of title 46, United States Code (as enacted by section 102 of this Act), affecting the validity
of that instrument.
‘‘(e) Section 102 of this Act and amendments made by
that section [enacting former section 30101 and sections
31301 to 31309, 31321 to 31330, and 31341 to 31343 of this
title and provisions set out as a note preceding section
2101 of this title] do not affect any civil action filed before January 1, 1989.
‘‘(f) Section 104(b) of this Act and the amendments
made by section 104(b) of this Act [amending section 808
of the former Appendix to this title] do not apply to
any change in control resulting from, or which may at
any time result from, any proposed plan of reorganization filed under the United States bankruptcy laws
prior to the date of enactment of this Act [Nov. 23,
1988], except that transactions undertaken as a result
of such a plan shall continue to be governed by section
9 of the Shipping Act, 1916 ([former] 46 App. U.S.C. 808)
[see 46 U.S.C. 56101, 57109], as it existed prior to the date
of enactment of this Act, to the extent that such section 9 would have governed such transactions.’’

§ 31302. Availability of instruments, copies, and
information
The Secretary shall—
(1) make any instrument filed or recorded
with the Secretary under this chapter available for public inspection;
(2) on request, provide a copy, including a
certified copy, of any instrument made available for public inspection under this chapter;
and
(3) on request, provide a certificate containing information included in an instrument
filed or recorded under this chapter.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4740; Pub. L. 111–281, title IX, § 913(a)(1),
Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31302(1) ........................................
31302(2) ........................................

Source section (U.S. Code)
46:927 (1st sentence)
46:927 (2d sentence)

Page 229

§ 31306

TITLE 46—SHIPPING

HISTORICAL AND REVISION NOTES—CONTINUED
Revised section

Source section (U.S. Code)

31302(3) ........................................

New

Section 31302(1) makes all instruments filed for recording or recorded with the Secretary of Transportation available for public inspection. The only substantive change to law made by this subsection is the
inclusion of instruments filed for recording, which is in
keeping with the new requirements on filing of instruments made in section 31321.
Section 31302(2) requires the Secretary to provide the
public with a certified copy of the material made available to the public under subsection (a). This subsection
makes no substantive change to law.
Section 31302(3) requires the Secretary, on request, to
issue a certificate containing the information included
in instruments on file, such as certificates of ownership.
AMENDMENTS
2010—Pub. L. 111–281 struck out ‘‘of Transportation’’
after ‘‘Secretary’’ in introductory provisions.

§ 31303. Certain civil actions not authorized
If a mortgage covers a vessel and additional
property that is not a vessel, this chapter does
not authorize a civil action in rem to enforce
the rights of the mortgagee under the mortgage
against the additional property.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4740.)
HISTORICAL AND REVISION NOTES
Revised section
31303 ............................................

Source section (U.S. Code)
46:954(b)

prevails, the court shall award costs and attorneys fees
to the plaintiff. This section makes two substantive
changes to law. First, is the broadening of its coverage
from documented vessels covered by a preferred mortgage to any vessel covered by a mortgage that is filed
or recorded under the chapter. The second substantive
change repeals the liability on the United States Government for losses caused because the Secretary did
not comply with statutory requirements. This is covered by the Federal Tort Claims Act due to the nondiscretionary responsibility of the Secretary.

§ 31305. Waiver of lien rights
This chapter does not prevent a mortgagee or
other lien holder from waiving or subordinating
at any time by agreement or otherwise the lien
holder’s right to a lien, the priority or, if a preferred mortgage lien, the preferred status of the
lien.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741.)
HISTORICAL AND REVISION NOTES
Revised section
31305 ............................................

Source section (U.S. Code)
46:974

Section 31305 provides for the waiver of lien rights by
the mortgagee or a person performing or supplying necessaries. This section makes no substantive change to
law and is included only because of a like provision in
current law. Without this provision the Committee believes these waivers would be permissible as a matter
of law as they do not violate any public policy and on
their face reflect an arms length transaction between
the parties. The inclusion of this provision should not
raise the implication that a similar provision is required for other matters that may be waivable as a
matter of law.

Section 31303 makes it clear that, if a mortgage covers a vessel and additional property that is not a vessel,
this chapter does not authorize a civil action in rem in
admiralty to enforce rights against the additional property. This section makes no substantive change to law.

Section 31305 has been changed to clarify that the
chapter does not prevent a mortgagee or other lien
holder from waiving by contract the right to a lien, or
the priority of that lien.

§ 31304. Liability for noncompliance

§ 31306. Declaration of citizenship

(a) If a person makes a contract secured by, or
on the credit of, a vessel covered by a mortgage
filed or recorded under this chapter and sustains
a monetary loss because the mortgagor or the
master or other individual in charge of the vessel does not comply with a requirement imposed
on the mortgagor, master, or individual under
this chapter, the mortgagor is liable for the loss.
(b) A civil action may be brought to recover
for losses referred to in subsection (a) of this
section. The district courts have original jurisdiction of the action, regardless of the amount
in controversy or the citizenship of the parties.
If the plaintiff prevails, the court shall award
costs and attorney fees to the plaintiff.

(a) Except as provided by the Secretary, when
an instrument transferring an interest in a vessel is presented to the Secretary for filing or recording, the transferee shall file with the instrument a declaration, in the form the Secretary
may prescribe by regulation, stating information about citizenship and other information the
Secretary may require to show the transaction
involved does not violate section 56102 or 56103 of
this title.
(b) A declaration under this section filed by a
corporation must be signed by its president, secretary, treasurer, or other official authorized by
the corporation to execute the declaration.
(c) Except as provided by the Secretary, an instrument transferring an interest in a vessel is
not valid against any person until the declaration required by this section has been filed.
(d) A person knowingly making a false statement of a material fact in a declaration filed
under this section shall be fined under title 18,
imprisoned for not more than 5 years, or both.

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4740.)
HISTORICAL AND REVISION NOTES
Revised section
31304 ............................................

Source section (U.S. Code)
46:941(c)

Section 31304 imposes liability on the mortgagor if
the mortgagor, master, or other individual in charge of
the vessel does not comply with the statutory requirements. A civil action may be brought in a district court
of the United States for losses incurred. If the plaintiff

HOUSE FLOOR STATEMENT

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741; Pub. L. 101–225, title III, § 303(1), Dec.
12, 1989, 103 Stat. 1923; Pub. L. 109–304, § 15(27),
Oct. 6, 2006, 120 Stat. 1704; Pub. L. 111–281, title
IX, § 913(a)(1), Oct. 15, 2010, 124 Stat. 3017.)

§ 31307

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

31306 ............................................

46:838

Section 31306(a) requires that a person submitting an
instrument transferring interest in a vessel to the Secretary for recording is also to file a declaration stating
information about citizenship and other information to
show that the transfer is not in violation of section 9
of the Shipping Act, or section 37 of that Act in a national emergency. This section makes no substantive
change to law.
Section 31306(b) requires that a declaration filed by a
corporation must be signed by the president, secretary,
treasurer, or other official authorized by the corporation to execute the declaration. This section makes no
substantive change to law.
Section 31306(c) invalidates any instrument transferring an interest until the declaration is filed. This section makes no substantive change to law.
Section 31306(d) provides for a criminal penalty for a
violation of this section. The amount of the fine is prescribed under title 18, United States Code, and may include imprisonment for not more than 5 years, or both.
This section makes no substantive change to law.
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281 struck out ‘‘of
Transportation’’ after ‘‘provided by the Secretary’’.
2006—Subsec. (a). Pub. L. 109–304 substituted ‘‘section
56102 or 56103 of this title’’ for ‘‘section 9 or 37 of the
Shipping Act, 1916 (46 App. U.S.C. 808, 835)’’.
1989—Subsec. (a). Pub. L. 101–225, § 303(1)(A), substituted ‘‘Except as provided by the Secretary of Transportation, when’’ for ‘‘When’’ and ‘‘Secretary for filing’’ for ‘‘Secretary of Transportation for filing’’.
Subsec. (c). Pub. L. 101–225, § 303(1)(B), substituted
‘‘Except as provided by the Secretary, an’’ for ‘‘An’’.

§ 31307. State statutes superseded
This chapter supersedes any State statute conferring a lien on a vessel to the extent the statute establishes a claim to be enforced by a civil
action in rem against the vessel for necessaries.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741.)
HISTORICAL AND REVISION NOTES
Revised section
31307 ............................................

Source section (U.S. Code)
46:975

Section 31307 provides for preemption of State laws to
the extent a claim for necessaries is enforced by a civil
action in rem in admiralty against the vessel.

§ 31308. Secretary of Commerce or Transportation as mortgagee
The Secretary of Commerce or Transportation, as a mortgagee under this chapter, may
foreclose on a lien arising from a right established under a mortgage under chapter 537 of
this title, subject to section 362(b) of title 11.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741; Pub. L. 101–595, title VI, § 603(13), Nov.
16, 1990, 104 Stat. 2993; Pub. L. 109–304, § 15(28),
Oct. 6, 2006, 120 Stat. 1704; Pub. L. 111–281, title
IX, § 913(b), Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31308 ............................................

Source section (U.S. Code)
46:952 (last sentence)

Page 230

Section 31308 allows the Secretary of Commerce or
Transportation to foreclose on a lien arising from a
right established under a mortgage under title XI of
the Merchant Marine Act, 1936. This section makes no
substantive change to law.
AMENDMENTS
2010—Pub. L. 111–281 substituted ‘‘The Secretary of
Commerce or Transportation, as a mortgagee under
this chapter,’’ for ‘‘When the Secretary of Commerce or
Transportation is a mortgagee under this chapter, the
Secretary’’.
2006—Pub. L. 109–304 substituted ‘‘chapter 537 of this
title’’ for ‘‘title XI of the Merchant Marine Act, 1936 (46
App. U.S.C. 1271 et seq.)’’.
1990—Pub. L. 101–595 substituted ‘‘(46 App. U.S.C. 1271
et seq.)’’ for ‘‘(46 App. U.S.C. 1241 et seq.)’’.

§ 31309. General civil penalty
Except as otherwise provided in this chapter, a
person violating this chapter or a regulation
prescribed under this chapter is liable to the
United States Government for a civil penalty of
not more than $10,000.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741.)
HISTORICAL AND REVISION NOTES
Revised section
31309 ............................................

Source section (U.S. Code)
New

Section 31309 provides for a civil penalty of not more
than $10,000 for a violation of this chapter or a regulation prescribed under this chapter.

SUBCHAPTER II—COMMERCIAL
INSTRUMENTS
§ 31321. Filing, recording, and discharge
(a)(1) A bill of sale, conveyance, mortgage, assignment, or related instrument, whenever
made, that includes any part of a documented
vessel or a vessel for which an application for
documentation is filed, must be filed with the
Secretary to be valid, to the extent the vessel is
involved, against any person except—
(A) the grantor, mortgagor, or assignor;
(B) the heir or devisee of the grantor, mortgagor, or assignor; and
(C) a person having actual notice of the sale,
conveyance, mortgage, assignment, or related
instrument.
(2) Each bill of sale, conveyance, mortgage, assignment, or related instrument that is filed in
substantial compliance with this section is valid
against any person from the time it is filed with
the Secretary.
(3) The parties to an instrument or an application for documentation shall use diligence to ensure that the parts of the instrument or application for which they are responsible are in substantial compliance with the filing and documentation requirements.
(4) A bill of sale, conveyance, mortgage, assignment, or related instrument may be filed
electronically under regulations prescribed by
the Secretary.
(b) To be filed, a bill of sale, conveyance,
mortgage, assignment, or related instrument
must—
(1) identify the vessel;

Page 231

§ 31321

TITLE 46—SHIPPING

(2) state the name and address of each party
to the instrument;
(3) state, if a mortgage, the amount of the
direct or contingent obligations (in one or
more units of account as agreed to by the parties) that is or may become secured by the
mortgage, excluding interest, expenses, and
fees;
(4) state the interest of the grantor, mortgagor, or assignor in the vessel;
(5) state the interest sold, conveyed, mortgaged, or assigned; and
(6) be signed and acknowledged.
(c) If a bill of sale, conveyance, mortgage, assignment, or related document is filed that involves a vessel for which an application for documentation is filed, and the Secretary decides
that the vessel cannot be documented by an applicant—
(1) the Secretary shall send notice of the
Secretary’s decision, including reasons for the
decision, to each interested party to the instrument filed for recording; and
(2) 90 days after sending the notice as provided under clause (1) of this subsection, the
Secretary—
(A) may terminate the filing; and
(B) may return the instrument filed without recording it under subsection (e) of this
section.
(d) A person may withdraw an application for
documentation of a vessel for which a mortgage
has been filed under this section only if the
mortgagee consents.
(e) The Secretary shall—
(1) record the bills of sale, conveyances,
mortgages, assignments, and related instruments of a documented vessel complying with
subsection (b) of this section in the order they
are filed; and
(2) maintain appropriate indexes, for use by
the public, of instruments filed or recorded, or
both.
(f) On full and final discharge of the indebtedness under a mortgage recorded under subsection (e)(1) of this section, a mortgagee, on request of the Secretary or mortgagor, shall provide the Secretary with an acknowledged certificate of discharge of the indebtedness in a form
prescribed by the Secretary. The Secretary shall
record the certificate.
(g) The mortgage or related instrument of a
vessel covered by a preferred mortgage under
section 31322(d) of this title, that is later filed
under this section at the time an application for
documentation is filed, is valid under this section from the time the mortgage or instrument
representing financing became a preferred mortgage under section 31322(d).
(h) On full and final discharge of the indebtedness under a mortgage deemed to be a preferred
mortgage under section 31322(d) of this title, a
mortgagee, on request of the Secretary, a State,
or mortgagor, shall provide the Secretary or the
State, as appropriate, with an acknowledged
certificate of discharge of the indebtedness in a
form prescribed by the Secretary or the State,
as applicable. If filed with the Secretary, the
Secretary shall enter that information in the
vessel identification system under chapter 125 of
this title.

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741; Pub. L. 101–225, title III, § 303(2), Dec.
12, 1989, 103 Stat. 1923; Pub. L. 104–324, title III,
§ 305, Oct. 19, 1996, 110 Stat. 3918; Pub. L. 107–295,
title IV, § 420, Nov. 25, 2002, 116 Stat. 2124; Pub. L.
111–281, title IX, § 913(a)(1), Oct. 15, 2010, 124 Stat.
3017.)
HISTORICAL AND REVISION NOTES
Revised section
31321(a)(1) ....................................
31321(a)(2) ....................................
31321(a)(3) ....................................
31321(b) ........................................
31321(c), (d) ..................................
31321(e) ........................................
31321(f) ........................................
31321(g) ........................................
31321(h) ........................................

Source section (U.S. Code)
46:921(a)
46:1012
New
46:926(a), (b)
New
46:921(b)
46:925(b)
New
46:925(b)

Section 31321(a)(1) provides for the filing of a bill of
sale, conveyance, mortgage, assignment, or related instrument of a vessel. This subsection makes substantive changes to law. The bill would allow a bill of
sale, conveyance, mortgage, assignment, or related instrument to be filed at the same time an application
for documentation under chapter 121 is filed. The Committee intends that the types of related instruments
required to be filed be defined by regulations prescribed
by the Secretary of Transportation. A major change
the bill makes is that the instrument needs only be
filed with the Secretary of Transportation to be valid.
It is not necessary that it be recorded. This change is
being made to eliminate a problem under existing law
that prevents a person from recording an instrument
when the vessel has not been yet documented. When
filed with the Secretary, it is valid (to the extent the
vessel is involved) against any person except the grantor, mortgagor, or assignor, their heirs or devisees, and
a person having actual notice of that instrument.
Clauses (A)–(C) make no substantive change to law.
Paragraph (2) provides that each bill of sale, conveyance, mortgage, assignment, or related instrument that
is filed in substantial compliance with the requirements of this section is valid against any person from
the time it is filed with the Secretary.
Paragraph (3) provides that it is the responsibility of
the parties to an instrument to use diligence to ensure
that the particulars of a filed instrument for which
they are responsible are in substantial compliance. It is
not the responsibility of the Secretary to validate the
information in the instrument. If an instrument is
later found to be invalid because it is not in substantial
compliance, and the parties lose the benefits of a preferred mortgage, it is their fault, not the Secretary’s.
Section 31321(b) sets out the requirements that an instrument must meet to be properly filed. To be filed
the instruments must: (1) identify the vessel; (2) state
the name and address of each party to the instrument;
(3) state, if a mortgage, the amount of the direct or
contingent obligations (in one or more units of account
as agreed to by the parties) that is or may become secured by the mortgage, excluding interest, expenses,
and fees; (4) state the interest of the grantor, mortgagor, or assignor; (5) state the interest sold, conveyed,
mortgaged, or assigned; and (6) be signed and acknowledged. While most of these items are required under
current law to be included in the index, and therefore
required to be submitted to the Secretary to be recorded, this subsection makes a number of substantive
changes to law. First, while vessel names are currently
required to be submitted, this requirement has been
broadened so that hull identification numbers and official numbers can be used to more specifically identify
a vessel (since many vessels have the same name). Second, it requires the mortgage to state the maximum
amount of the obligation, including principal, interest,
fees, etc., that are secured by the mortgage. It also
clarifies that the mortgage obligation may be payable
in more than one unit of account, such as yen, franc, or

§ 31322

TITLE 46—SHIPPING

special drawing right. Third, it recognizes that under
some modern financing practices an instrument may
not have a date of maturity. The requirement for supplying the date of maturity has been eliminated.
Section 31321(c) provides that if an instrument filed
involves a vessel that has not yet been documented,
and the Secretary decides that the vessel cannot be
documented by the applicant, then the Secretary shall
send notice of that denial to the parties, including the
reasons for the Secretary’s decision. If the parties have
not corrected the deficiencies within 90 days, the Secretary may terminate the filing and return the instruments. This invalidates the instruments.
Section 31321(d) prohibits a person from withdrawing
an application for documentation of a vessel for which
a mortgage has been filed unless the mortgagee consents. Since the withdrawal will invalidate the mortgage, the mortgagee should be allowed to prohibit the
withdrawal.
Section 31321(e) makes a substantive change to law.
It requires the Secretary to record instruments in the
order they are received for filing, not in the order in
which they were received for recording. It also makes
a substantive change by eliminating the specific indexes required under the law and substituting a general
requirement for the Secretary to maintain indexes of
instruments filed or recorded, or both, for use by the
public. These indexes, prescribed by regulations, must
be in keeping with U.S. obligations under treaties to
which the United States is a party. Since section 104
[105] of this Act makes the existing rules and regulations applicable under this subsection, the current indexing system will be maintained that includes the
names of the vessels; names of the parties to the instruments; time and date each instrument was received; the interest in the vessel that was sold, conveyed, mortgaged, or assigned; and the date of the maturity of the mortgage, if any. However, it allows the
Secretary by regulation to automate the system with
computers, as long as the new system provides the public with an adequate method of finding and examining
these public records.
Section 31321(f) makes a substantive change to law by
eliminating the requirement that a partial discharge of
indebtedness be filed with the Secretary. The bill requires that on the full and final discharge of indebtedness the mortgagee, on request of the Secretary or
mortgagor, shall provide the Secretary with a written,
acknowledged certificate of discharge of the indebtedness. This subsection also makes a substantive change
by requiring that the mortgagee, not the mortgagor,
provide the certificate of discharge. The Secretary
shall then record the certificate. However, this does not
prohibit a person from submitting a certificate of discharge under subsection (a) since it is a related instrument. This subsection also makes a substantive change
to law by eliminating the requirement that the discharge be endorsed on the vessel’s certificate of documentation, and that the Customs Service only may
clear a vessel after an endorsement has been made.
This change is made because of the elimination of endorsements under section 31322.
HOUSE FLOOR STATEMENT

Section 31321 has been changed to clarify that a mortgage, whenever made, must be filed to be valid against
third parties. This clarification allows mortgage closings to occur previous to filing of an instrument, and
to eliminate the need for a fictional simultaneous closing and filing.
Subsection (g) clarifies that if an application for documentation is filed for a vessel covered by a preferred
mortgage under section 31322(d) (as enacted by this
Act), the preferred mortgage must be filed with the
Secretary at the same time the application for documentation is filed to be valid against third parties. If
the preferred mortgage is filed with the Secretary at
the time the documentation application is filed, it is
valid from the time it became a preferred mortgage
under section 31322(d).

Page 232

When a State preferred mortgage under section
31322(d) is finally discharged, subsection (h) of this section requires the mortgagee to provide upon request to
the Secretary or a State, whichever is more appropriate, an acknowledged certificate of discharge of indebtedness. This is necessary when a vessel in the system moves from a participating titling State and is not
retitled in another participating State. In this case,
there is no way to update the status of the indebtedness
through the original titling State. The Secretary is required to accept this information to be maintained in
the vessel identification system under section 12503(c)
of title 46 (as enacted by this Act).
AMENDMENTS
2010—Subsec. (a)(1). Pub. L. 111–281 struck out ‘‘of
Transportation’’ after ‘‘Secretary’’ in introductory provisions.
2002—Subsec. (a)(4) Pub. L. 107–295 struck out subpar.
(A) designation before ‘‘A bill of sale’’ and subpar. (B)
which read as follows: ‘‘A filing made electronically
under subparagraph (A) shall not be effective after the
10-day period beginning on the date of the filing unless
the original instrument is provided to the Secretary
within that 10-day period.’’
1996—Subsec. (a). Pub. L. 104–324 added par. (4).
1989—Subsec. (c). Pub. L. 101–225 substituted ‘‘for
which an application for documentation is filed’’ for
‘‘that has not yet been documented’’ in introductory
provisions and ‘‘interested party to’’ for ‘‘party whose
name and address is stated on’’ in par. (1).
EFFECTIVE DATE
Section effective Jan. 1, 1989, not to affect any civil
action filed before that date, and, insofar as applicable
to vessels for which an application for documentation
has been filed, effective Jan. 1, 1990, with further provision for an instrument filed before Jan. 1, 1989, but not
recorded before that date, and with other qualifications, see section 107 of Pub. L. 100–710, set out as a
note under section 31301 of this title.

§ 31322. Preferred mortgages
(a) A preferred mortgage is a mortgage, whenever made, that—
(1) includes the whole of the vessel;
(2) is filed in substantial compliance with
section 31321 of this title;
(3)(A) covers a documented vessel; or
(B) covers a vessel for which an application
for documentation is filed that is in substantial compliance with the requirements of
chapter 121 of this title and the regulations
prescribed under that chapter; and
(4) with respect to a vessel with a fishery endorsement that is 100 feet or greater in registered length, has as the mortgagee—
(A) a person eligible to own a vessel with
a fishery endorsement under section 12113(c)
of this title;
(B) a state 1 or federally chartered financial institution that is insured by the Federal Deposit Insurance Corporation;
(C) a farm credit lender established under
title 12, chapter 23 of the United States
Code;
(D) a commercial fishing and agriculture
bank established pursuant to State law;
(E) a commercial lender organized under
the laws of the United States or of a State
and eligible to own a vessel for purposes of
documentation under section 12103 of this
title; or
1 So

in original. Probably should be capitalized.

Page 233

TITLE 46—SHIPPING

(F) a mortgage trustee under subsection (f)
of this section.
(b) Any indebtedness secured by a preferred
mortgage that is filed or recorded under this
chapter, or that is subject to a mortgage, security agreement, or instruments granting a security interest that is deemed to be a preferred
mortgage under subsection (d) of this section,
may have any rate of interest to which the parties agree.
(c)(1) If a preferred mortgage includes more
than one vessel or property that is not a vessel,
the mortgage may provide for the separate discharge of each vessel and all property not a vessel by the payment of a part of the mortgage indebtedness.
(2) If a vessel covered by a preferred mortgage
that includes more than one vessel or property
that is not a vessel is to be sold on the order of
a district court in a civil action in rem, and the
mortgage does not provide for separate discharge as provided under paragraph (1) of this
subsection—
(A) the mortgage constitutes a lien on that
vessel in the full amount of the outstanding
mortgage indebtedness; and
(B) an allocation of mortgage indebtedness
for purposes of separate discharge may not be
made among the vessel and other property
covered by the mortgage.
(d)(1) A mortgage, security agreement, or instrument granting a security interest perfected
under State law covering the whole of a vessel
titled in a State is deemed to be a preferred
mortgage if—
(A) the Secretary certifies that the State titling system complies with the Secretary’s
guidelines for a titling system under section
13107(b)(8) of this title; and
(B) information on the vessel covered by the
mortgage, security agreement, or instrument
is made available to the Secretary under chapter 125 of this title.
(2) This subsection applies to mortgages, security agreements, or instruments covering vessels titled in a State after—
(A) the Secretary’s certification under paragraph (1)(A) of this subsection; and
(B) the State begins making information
available to the Secretary under chapter 125 of
this title.
(3) A preferred mortgage under this subsection
continues to be a preferred mortgage even if the
vessel is no longer titled in the State where the
mortgage, security agreement, or instrument
granting a security interest became a preferred
mortgage under this subsection.
(e) If a vessel is already covered by a preferred
mortgage when an application for titling or documentation is filed—
(1) the status of the preferred mortgage covering the vessel to be titled in the State is determined by the law of the jurisdiction where
the vessel is currently titled or documented;
and
(2) the status of the preferred mortgage covering the vessel to be documented under chapter 121 is determined by subsection (a) of this
section.

§ 31322

(f)(1) A mortgage trustee may hold in trust,
for an individual or entity, an instrument or
evidence of indebtedness, secured by a mortgage
of the vessel to the mortgage trustee, provided
that the mortgage trustee—
(A) is eligible to be a preferred mortgagee
under subsection (a)(4), subparagraphs (A)–(E)
of this section;
(B) is organized as a corporation, and is
doing business, under the laws of the United
States or of a State;
(C) is authorized under those laws to exercise corporate trust powers;
(D) is subject to supervision or examination
by an official of the United States Government or a State;
(E) has a combined capital and surplus (as
stated in its most recent published report of
condition) of at least $3,000,000; and
(F) meets any other requirements prescribed
by the Secretary.
(2) If the beneficiary under the trust arrangement is not a commercial lender, a lender syndicate or eligible to be a preferred mortgagee
under subsection (a)(4), subparagraphs (A)–(E) of
this section, the Secretary must determine that
the issuance, assignment, transfer, or trust arrangement does not result in an impermissible
transfer of control of the vessel to a person not
eligible to own a vessel with a fishery endorsement under section 12113(c) of this title.
(3) A vessel with a fishery endorsement may be
operated by a mortgage trustee only with the
approval of the Secretary.
(4) A right under a mortgage of a vessel with
a fishery endorsement may be issued, assigned,
or transferred to a person not eligible to be a
mortgagee of that vessel under this section only
with the approval of the Secretary.
(5) The issuance, assignment, or transfer of an
instrument or evidence of indebtedness contrary
to this subsection is voidable by the Secretary.
(g) For purposes of this section a ‘‘commercial
lender’’ means an entity primarily engaged in
the business of lending and other financing
transactions with a loan portfolio in excess of
$100,000,000, of which not more than 50 per centum in dollar amount consists of loans to borrowers in the commercial fishing industry, as
certified to the Secretary by such lender.
(h) For purposes of this section a ‘‘lender syndicate’’ means an arrangement established for
the combined extension of credit of not less than
$20,000,000 made up of four or more entities that
each have a beneficial interest, held through an
agent, under a trust arrangement established
pursuant to subsection (f), no one of which may
exercise powers thereunder without the concurrence of at least one other unaffiliated beneficiary.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4743; Pub. L. 101–225, title III, § 303(3), Dec.
12, 1989, 103 Stat. 1923; Pub. L. 104–324, title XI,
§ 1113(a), Oct. 19, 1996, 110 Stat. 3970; Pub. L.
105–277, div. C, title II, § 202(b), Oct. 21, 1998, 112
Stat. 2681–618; Pub. L. 105–383, title IV,
§ 401(c)(1)–(4), Nov. 13, 1998, 112 Stat. 3425; Pub. L.
106–31, title III, § 3027(a)(1), May 21, 1999, 113 Stat.
101; Pub. L. 107–20, title II, § 2202(b), (c), July 24,
2001, 115 Stat. 168, 169; Pub. L. 109–304, §§ 15(29),
16(c)(7), Oct. 6, 2006, 120 Stat. 1704, 1706.)

§ 31322

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

31322(a)(1) ....................................
31322(a)(2) ....................................
31322(b) ........................................
31322(c)(1) ....................................
31322(c)(2) ....................................
31322(d), (e) ..................................

Source section (U.S. Code)
46:922(a), (b)
New
46:926(d)
46:922(e)
46:922(f)
New

Section 31322 sets out the conditions that must be
met for a mortgage to be considered a preferred mortgage, and the types of endorsements that the Secretary
must make on any certificate of documentation of a
vessel that is to be covered by a preferred mortgage.
Subsection (a)(1) makes many substantive changes to
law. While a preferred mortgage must still include the
whole of a vessel, this subsection eliminates the exception of certain vessels under 25 gross tons. It allows a
vessel for which an application for documentation has
been filed to have a preferred mortgage. It allows a
mortgage to be a preferred mortgage from the time all
four conditions are met, rather than from when the
vessel is finally documented. Therefore, a mortgage
will usually attain its preferred status when the application for documentation and the instrument have
been filed. This subsection changes the requirement
that all documented vessels have as a mortgagee a person that is a citizen of the United States, as defined in
section 2 of the Shipping Act, 1916, and allows a State,
the United States Government, a federally insured depository institution, or any other person approved by
the Secretary to be a mortgagee.
Subsection (a)(2) makes a substantive change to law
exempting fishing, fish processing, and fish tender vessels, and vessels operated only for pleasure from the
mortgagee restrictions, since these vessels do not have
significant national defense use.
Subsection (b) permits a preferred mortgage to have
any rate of interest that is agreeable to the parties to
the mortgage. This subsection makes no substantive
change to law.
Subsection (c)(1) applies to a mortgage that covers
more than one vessel or additional property that is not
a vessel. This subsection allows a preferred mortgage to
include a separate discharge of the additional vessels
and property.
Subsection (c)(2) applies when a preferred mortgage
covers more than one vessel, does not provide for the
separate discharge of a vessel, and is to be sold by court
order. The amount of the mortgage indebtedness attributable to a vessel is that part of the indebtedness, increased by 20 percent, that the court determines approximates the value that the particular vessel bears to
the value of all the vessels and property covered by the
mortgage. In other words, the amount to be set by the
court is the estimated value of the one vessel plus 20
percent of that value to assure sufficiency of collateral.
This section also makes a substantive change by
eliminating the requirement that a vessel’s certificate
of documentation be endorsed with information from
the mortgage. This change is made since most of the
information is out of date when examined, and since a
mortgage must be carried on self-propelled vessels
under section 31324(b). This section also eliminates the
requirement for the inclusion of an affidavit of good
faith. However, both criminal and civil penalties have
been added [in section 31330] to help ensure that there
is not fraud. This section also eliminates the requirement that a preferred mortgage include a separate discharge for additional property that is not a vessel, the
requirement that the mortgage does not stipulate that
the mortgagee waives the mortgage’s preferred status;
and the requirement for clearing vessels with endorsed
documents through Customs.
HOUSE FLOOR STATEMENT

Under section 31322(a)(2) a ‘‘vessel operated only for
pleasure’’ is exempt from any restrictions on who can
be a mortgagee. This standard is the same as used for
the documentation of a recreational vessel under sec-

Page 234

tion 12109 of title 46. The Committee intends that vessels that have a recreational vessel license, or combined fisheries and recreational license, fall under this
exemption. However, if the vessel has a Coastwise License, Great Lakes License, or Registry combined with
a Recreational License, the vessel would not fall under
this exemption.
Under subsection (c)(2), if a vessel covered by a preferred mortgage that includes more than one vessel or
property that is not a vessel is to be sold on the order
of a district court in rem, and there is not a separate
discharge, then the mortgage constitutes a lien on that
vessel in the full amount of the outstanding mortgage
indebtedness, and an allocation of mortgage indebtedness for purposes of a separate discharge may not be
made. This change is made to eliminate the formula
that did not work and to allow the vessel to be sold free
and clear, regardless of the amount of the sale.
Under subsection (d) of section 31322, a mortgage or
other instrument representing financing of a vessel
under State law that is made under applicable State
law and covers the whole of a vessel titled in a State
is deemed to be a preferred mortgage if two conditions
are fulfilled. The first condition is that the Secretary
must certify that the State in which the vessel is titled
has a titling system that complies with the Secretary’s
vessel titling guidelines established under section
13106(b)(8) of title 46. Congress mandated the promulgation of these guidelines in the Recreational Boating
Safety Act of 1986, Public Law 99–626. The second condition is that the State in which the vessel is titled must
make information available to the Secretary for the
vessel identification system established under chapter
125 of title 46 (as enacted by this Act) on the vessel covered by the mortgage or other instrument. This status
only applies to vessels titled in the State after those
two conditions are met. The phrase ‘‘instrument representing financing of a vessel under State law’’ is used
in addition to ‘‘mortgage’’ because State laws do not
always use the term mortgage when referring to financing. It is intended, however, that the financing covered
by this phrase would be the same as that covered by the
concept of a mortgage under other Federal law.
Paragraph (2) of subsection (d) clarifies that mortgages or other financing instruments may obtain preferred status under subsection (d) if they cover vessels
titled in a State after the Secretary certifies the compliance of the State’s titling system, and the State begins making vessel identification information available
to the Secretary. Preferred mortgage status can only
be attained when these two conditions are in effect.
Mortgages or financing instruments made prior to that
are not preferred and, if these two conditions cease to
exist, new mortgages or forecasting instruments made
after that time cannot attain preferred status.
The law of the titling State controls the making of
the preferred mortgage or financing instrument under
this subsection. No additional Federal recording requirements may be imposed for the mortgage or instrument to obtain preferred status under this subsection.
Paragraph (3) of this subsection ensures that a preferred mortgage under this subsection retains that
status if the vessel covered by the mortgage later relinquishes its title. If the vessel is subsequently documented, the continuing validity of the mortgage is determined by section 31321(g) (as enacted by this Act).
Subsection (e) of section 31322 clarifies the validity of
preferred mortgages made under subsection (d). In the
case of a State titled vessel covered by a preferred
mortgage for which a new titling application is filed,
the validity of the mortgage is governed by the law of
the titling State in which the mortgage became preferred. In the case of a documented vessel covered by a
preferred mortgage for which an application for a State
title is filed, or a State titled vessel covered by a preferred mortgage for which an application for documentation is filed, the validity of the preferred mortgage is governed by section 31322(a) of title 46 (as enacted by this Act).
Information on vessels with preferred mortgages
made under State law will be available to creditors

Page 235

§ 31323

TITLE 46—SHIPPING

from the vessel identification system under chapter 125
of title 46 (as enacted by this Act).
AMENDMENTS
2006—Subsec. (a)(4)(A). Pub. L. 109–304, § 15(29)(A), substituted ‘‘section 12113(c)’’ for ‘‘section 12102(c)’’.
Subsec. (a)(4)(E). Pub. L. 109–304, § 15(29)(B), substituted ‘‘for purposes of documentation under section
12103’’ for ‘‘under section 12102(a)’’.
Subsec. (d)(1)(A). Pub. L. 109–304, § 16(c)(7), substituted
‘‘section 13107(b)(8)’’ for ‘‘section 13106(b)(8)’’.
Subsec. (f)(2). Pub. L. 109–304, § 15(29)(C), substituted
‘‘section 12113(c)’’ for ‘‘section 12102(c)’’.
2001—Subsec. (a)(4)(B) to (F). Pub. L. 107–20, § 2202(b),
added subpars. (B) to (F) and struck out former subpars. (B) and (C) which read as follows:
‘‘(B) a state or federally chartered financial institution that satisfies the controlling interest criteria of
section 2(b) of the Shipping Act, 1916 (46 U.S.C. 802(b));
‘‘(C) a person that complies with the provisions of
section 12102(c)(4) of this title.’’
Subsecs. (f) to (h). Pub. L. 107–20, § 2202(c), added subsecs. (f) to (h).
1999—Subsec. (a)(4). Pub. L. 106–31 made technical
amendment to directory language of Pub. L. 105–277,
§ 202(b). See 1998 Amendment note below.
1998—Subsec. (a)(4). Pub. L. 105–277, § 202(b), as amended by Pub. L. 106–31, added par. (4).
Subsec. (b). Pub. L. 105–383, § 401(c)(1), added subsec.
(b) and struck out former subsec. (b) which read as follows: ‘‘A preferred mortgage filed or recorded under
this chapter may have any rate of interest that the
parties to the mortgage agree to.’’
Subsec. (d)(1). Pub. L. 105–383, § 401(c)(2), substituted
‘‘mortgage, security agreement, or instrument’’ for
‘‘mortgage or instrument’’ in introductory provisions
and subpar. (B).
Subsec. (d)(2). Pub. L. 105–383, § 401(c)(4), substituted
‘‘mortgages, security agreements, or instruments’’ for
‘‘mortgages or instruments’’ in introductory provisions.
Subsec. (d)(3). Pub. L. 105–383, § 401(c)(3), added par. (3)
and struck out former par. (3) which read as follows: ‘‘A
preferred mortgage under this subsection continues to
be a preferred mortgage if the vessel is no longer titled
in the State where the mortgage was made.’’
1996—Subsec. (a). Pub. L. 104–324 amended subsec. (a)
generally. Prior to amendment, subsec. (a) consisted of
2 pars. with substantially similar provisions defining a
preferred mortgage except that it included a mortgage
with a State, the United States Government, a federally insured depository institution, or specified individual as mortgagee.
1989—Subsec. (a)(2). Pub. L. 101–225, § 303(3)(A), amended par. (2) generally. Prior to amendment, par. (2) read
as follows: ‘‘Paragraph (1)(D) of this subsection does
not apply to a vessel operated only as a fishing vessel,
fish processing vessel, or a fish tender vessel (as defined
in section 2101 of this title) or to a vessel operated only
for pleasure.’’
Subsec. (d)(1). Pub. L. 101–225, § 303(3)(B), substituted
‘‘granting a security interest perfected under State
law’’ for ‘‘representing financing of a vessel under
State law that is made under applicable State law’’.
Subsec. (e). Pub. L. 101–225, § 303(3)(C), substituted
‘‘the status of the preferred mortgage’’ for ‘‘the validity of the preferred mortgage’’ in pars. (1) and (2).
EFFECTIVE DATE OF 2001 AMENDMENT
Pub. L. 107–20, title II, § 2202(d), July 24, 2001, 115 Stat.
170, provided that: ‘‘Section 31322 of title 46, United
States Code as amended in this section, and as amended
by section 202(b) of the American Fisheries Act (Public
Law 105–277, division C, title II) shall not take effect
until April 1, 2003, nor shall the Secretary of Transportation, in determining whether a vessel owner complies
with the requirements of section 12102(c) of title 46,
United States Code [now 46 U.S.C. 12113(b)(2) to (d)],
consider the citizenship status of a lender, in its capac-

ity as a lender with respect to that vessel owner, until
after April 1, 2003.’’
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105–277, div. C, title II, § 203(a), Oct. 21, 1998,
112 Stat. 2681–619, provided that: ‘‘The amendments
made by section 202 [amending this section and former
section 12102 of this title] shall take effect on October
1, 2001.’’
EFFECTIVE DATE
Section effective Jan. 1, 1989, not to affect any civil
action filed before that date, and, insofar as applicable
to vessels for which an application for documentation
has been filed, effective Jan. 1, 1990, with other exceptions and qualifications, see section 107 of Pub. L.
100–710, set out as a note under section 31301 of this
title.

§ 31323. Disclosing and incurring obligations before executing preferred mortgages
(a) On request of the mortgagee and before
executing a preferred mortgage, the mortgagor
shall disclose in writing to the mortgagee the
existence of any obligation known to the mortgagor on the vessel to be mortgaged.
(b) After executing a preferred mortgage and
before the mortgagee has had a reasonable time
to file the mortgage, the mortgagor may not
incur, without the consent of the mortgagee,
any contractual obligation establishing a lien
on the vessel except a lien for—
(1) wages of a stevedore when employed directly by a person listed in section 31341 of
this title;
(2) wages for the crew of the vessel;
(3) general average; or
(4) salvage, including contract salvage.
(c) On conviction of a mortgagor under section
31330(a)(1)(A) or (B) of this title for violating
this section, the mortgage indebtedness, at the
option of the mortgagee, is payable immediately.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4744.)
HISTORICAL AND REVISION NOTES
Revised section
31323(a) ........................................
31323(b) ........................................
31323(c) ........................................

Source section (U.S. Code)
46:924(1)
46:924(2)
46:941(b) (last sentence)

Section 31323(a) requires the mortgagor to disclose
any obligations on the vessel before executing a preferred mortgage. This subsection makes no substantive
change to law.
Section 31323(b) provides that, after executing a preferred mortgage, the mortgagor may not incur, without
consent of the mortgagee, any contractual obligations
establishing a lien on the vessel—except a lien for stevedore wages, crew wages, general average, and salvage. The only substantive change to law made by this
subsection is that the reasonable time to record a
mortgage is changed to a reasonable time to file the
mortgage, and the elimination of the reference to endorsements. These changes are in keeping with the
changes made in section 31322.
Section 31323(c) provides that if a mortgagor is convicted of a violation of this section, then the mortgage
indebtedness, at the option of the mortgagee, is payable immediately. This subsection makes no substantive change to law.

§ 31324

TITLE 46—SHIPPING

§ 31324. Retention and examination of mortgages
of vessels covered by preferred mortgages
(a) On request, the owner, master, or individual in charge of a vessel covered by a preferred
mortgage shall permit a person to examine the
mortgage if the person has business with the
vessel that may give rise to a maritime lien or
the sale, conveyance, mortgage, or assignment
of a mortgage of the vessel.
(b) A mortgagor of a preferred mortgage covering a self-propelled vessel shall use diligence in
keeping a certified copy of the mortgage on the
vessel.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4744.)
HISTORICAL AND REVISION NOTES
Revised section
31324 ............................................

Source section (U.S. Code)
46:923

Section 31324(a) provides for examination of mortgages of a vessel that is covered by a preferred mortgage by persons that have business with the vessel that
may give rise to a maritime lien or the sale, conveyance, mortgage, or assignment of the mortgage. This
subsection makes no substantive change to law.
Section 31324(b) requires that a certified copy of the
mortgage must be on board a self-propelled vessel. This
subsection makes no substantive change to law.

§ 31325. Preferred mortgage liens and enforcement
(a) A preferred mortgage is a lien on the mortgaged vessel in the amount of the outstanding
mortgage indebtedness secured by the vessel.
(b) On default of any term of the preferred
mortgage, the mortgagee may—
(1) enforce the preferred mortgage lien in a
civil action in rem for a documented vessel, a
vessel to be documented under chapter 121 of
this title, a vessel titled in a State, or a foreign vessel;
(2) enforce a claim for the outstanding indebtedness secured by the mortgaged vessel
in—
(A) a civil action in personam in admiralty
against the mortgagor, maker, comaker, or
guarantor for the amount of the outstanding
indebtedness or any deficiency in full payment of that indebtedness; and
(B) a civil action against the mortgagor,
maker, comaker, or guarantor for the
amount of the outstanding indebtedness or
any deficiency in full payment of that indebtedness; and
(3) enforce the preferred mortgage lien or a
claim for the outstanding indebtedness secured by the mortgaged vessel, or both, by exercising any other remedy (including an extrajudicial remedy) against a documented vessel,
a vessel for which an application for documentation is filed under chapter 121 of this
title, a vessel titled in a State, a foreign vessel, or a mortgagor, maker, comaker, or guarantor for the amount of the outstanding indebtedness or any deficiency in full payment
of that indebtedness, if—
(A) the remedy is allowed under applicable
law; and

Page 236

(B) the exercise of the remedy will not result in a violation of section 56101 or 56102 of
this title.
(c) The district courts have original jurisdiction of a civil action brought under subsection
(b)(1) or (2) of this section. However, for a documented vessel, a vessel to be documented under
chapter 121 of this title, a vessel titled in a
State, or a foreign vessel, this jurisdiction is exclusive of the courts of the States for a civil action brought under subsection (b)(1) of this section.
(d)(1) Actual notice of a civil action brought
under subsection (b)(1) of this section, or to enforce a maritime lien, must be given in the manner directed by the court to—
(A) the master or individual in charge of the
vessel;
(B) any person that recorded under section
31343(a) or (d) of this title an unexpired notice
of a claim of an undischarged lien on the vessel; and
(C) a mortgagee of a mortgage filed or recorded under section 31321 of this title that is
an undischarged mortgage on the vessel.
(2) Notice under paragraph (1) of this subsection is not required if, after search satisfactory to the court, the person entitled to the notice has not been found in the United States.
(3) Failure to give notice required by this subsection does not affect the jurisdiction of the
court in which the civil action is brought. However, unless notice is not required under paragraph (2) of this subsection, the party required
to give notice is liable to the person not notified
for damages in the amount of that person’s interest in the vessel terminated by the action
brought under subsection (b)(1) of this section. A
civil action may be brought to recover the
amount of the terminated interest. The district
courts have original jurisdiction of the action,
regardless of the amount in controversy or the
citizenship of the parties. If the plaintiff prevails, the court may award costs and attorney
fees to the plaintiff.
(e) In a civil action brought under subsection
(b)(1) of this section—
(1) the court may appoint a receiver and authorize the receiver to operate the mortgaged
vessel and shall retain in rem jurisdiction over
the vessel even if the receiver operates the
vessel outside the district in which the court
is located; and
(2) when directed by the court, a United
States marshal may take possession of a mortgaged vessel even if the vessel is in the possession or under the control of a person claiming
a possessory common law lien.
(f)(1) Before title to the documented vessel or
vessel for which an application for documentation is filed under chapter 121 is transferred by
an extrajudicial remedy, the person exercising
the remedy shall give notice of the proposed
transfer to the Secretary, to the mortgagee of
any mortgage on the vessel filed in substantial
compliance with section 31321 of this title before
notice of the proposed transfer is given to the
Secretary, and to any person that recorded an
unexpired notice of a claim of an undischarged
lien on the vessel under section 31343(a) or (d) of

Page 237

§ 31325

TITLE 46—SHIPPING

this title before notice of the proposed transfer
is given to the Secretary.
(2) Failure to give notice as required by this
subsection shall not affect the transfer of title
to a vessel. However, the rights of any holder of
a maritime lien or a preferred mortgage on the
vessel shall not be affected by a transfer of title
by an extrajudicial remedy exercised under this
section, regardless of whether notice is required
by this subsection or given.
(3) The Secretary shall prescribe regulations
establishing the time and manner for providing
notice under this subsection.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4745; Pub. L. 101–225, title III, § 303(4), Dec.
12, 1989, 103 Stat. 1923; Pub. L. 104–324, title XI,
§ 1124(a), (b), Oct. 19, 1996, 110 Stat. 3980; Pub. L.
105–383, title IV, § 401(c)(5)–(7), Nov. 13, 1998, 112
Stat. 3425; Pub. L. 107–295, title II, § 205(b), Nov.
25, 2002, 116 Stat. 2096; Pub. L. 109–304, § 15(30),
Oct. 6, 2006, 120 Stat. 1704; Pub. L. 110–181, div. C,
title XXXV, § 3529(b)(1)(B), Jan. 28, 2008, 122 Stat.
603.)
HISTORICAL AND REVISION NOTES
Revised section
31325(a) ........................................
31325(b)(1) ....................................
31325(b)(2) ....................................
31325(b)(3) ....................................
31325(c) ........................................
31325(d) ........................................
31325(e) ........................................

Source section (U.S. Code)
46:951 (1st sentence)
46:951 (2d sentence)
46:954(a)
New
46:951 (3d sentence)
46:951 (4th to 6th sentences)
46:952 (1st, 2d sentences)

Section 31325 provides for the enforcement of a preferred mortgage lien.
Section 31325(a) makes a ‘‘preferred mortgage’’ a lien
on the vessel in the amount of the mortgage indebtedness secured by the vessel outstanding at foreclosure.
This subsection makes no substantive change to law.
Section 31325(b) provides that, on default of any term,
the mortgagee may enforce the preferred mortgage lien
in a civil action in rem, or in personam in admiralty
against the mortgagor, comaker, or guarantor for the
amount of the outstanding indebtedness secured by the
vessel or any deficiency in paying off that indebtedness. This subsection makes a substantive change to
law by allowing a nonadmiralty civil action to be
brought against the mortgagor, comaker, or guarantor
for the amount of the outstanding indebtedness secured
by the vessel or any deficiency in paying off that indebtedness. This change allows an action to be brought
even when the vessel is outside U.S. jurisdiction. This
section will also allow the action to be brought against
the comaker or guarantor of the mortgage.
Section 31325(c) provides for original and exclusive jurisdiction by a district court, to the exclusion of the
courts of a State for civil actions brought in rem. It
also provides for original jurisdiction for civil actions
brought in personam in admiralty and civil actions
brought under subsection (b)(3). This subsection makes
a substantive change to law by broadening the jurisdiction to courts in the territories, as defined in section
31301, as well as giving original jurisdiction to the district courts in nonadmiralty civil actions brought to
enforce the preferred mortgage lien.
Subsection (d) provides that actual notice of a civil
action in rem to enforce a maritime lien must be given
in a manner directed by the court to the master, individual in charge of the vessel, to any person that recorded a notice of a claim of an undischarged lien, and,
for the first time, to the mortgagee of a mortgage filed
with the Secretary. This notice is not required if, after
a search is made that is satisfactory to the court, the
person entitled to notice is not found in the United
States. Failure to give notice does not affect the
court’s jurisdiction. However, the mortgagor is still lia-

ble to the person not notified for damages in the
amount of that person’s interest in the vessel that was
terminated by the civil action in rem, and a civil action
may still be brought to recover the amount of the terminated interest. The district courts have original jurisdiction of the action, regardless of the amount in
controversy or the citizenship of the parties. If plaintiff
prevails, the court shall award costs and attorneys fees
to the plaintiff.
Subsection (e) provides that, in a civil action in rem,
the court may appoint a receiver and authorize operation of the vessel. When directed by the court, a
United States marshal may take possession—even if
the vessel is in the possession of or under the control
of a person claiming a possessory common law lien.
This subsection makes a substantive change to law by
allowing the court to retain in rem jurisdiction over the
vessel even if the receiver operates the vessel outside
the district in which the court is located.
HOUSE FLOOR STATEMENT

Subsection (c) of this section clarifies that the district courts have original jurisdiction for a civil action
under subsection (b) of this section, and exclusive jurisdiction in the case of vessels documented or to be documented under chapter 121 of title 46.
AMENDMENTS
2008—Subsec. (b)(3)(B). Pub. L. 110–181 amended Pub.
L. 109–304, § 15(30). See 2006 Amendment note below.
2006—Subsec. (b)(3)(B). Pub. L. 109–304, § 15(30), as
amended by Pub. L. 110–181, substituted ‘‘section 56101
or 56102 of this title’’ for ‘‘section 9 or 37 of the Shipping Act, 1916 (46 App. U.S.C. 808, 835)’’.
2002—Subsec. (d)(1)(B). Pub. L. 107–295, § 205(b)(1), substituted ‘‘an unexpired notice of a claim’’ for ‘‘a notice
of a claim’’.
Subsec. (f)(1). Pub. L. 107–295, § 205(b)(2), substituted
‘‘an unexpired notice of a claim’’ for ‘‘a notice of a
claim’’.
1998—Subsecs. (b)(1), (3), (c). Pub. L. 105–383 inserted
‘‘a vessel titled in a State,’’ after ‘‘chapter 121 of this
title,’’.
1996—Subsec. (b). Pub. L. 104–324, § 1124(a)(1), substituted ‘‘mortgagee may’’ for ‘‘mortgage may’’ in introductory provisions.
Subsec. (b)(1). Pub. L. 104–324, § 1124(a)(2)(A), substituted ‘‘preferred’’ for ‘‘perferred’’.
Subsec. (b)(3). Pub. L. 104–324, § 1124(a)(2)(B), (3), added
par. (3).
Subsec. (f). Pub. L. 104–324, § 1124(b), added subsec. (f).
1989—Subsecs. (b), (c). Pub. L. 101–225 amended subsecs. (b) and (c) generally. Prior to amendment, subsecs. (b) and (c) read as follows:
‘‘(b) On default of any term of the preferred mortgage, the mortgagee may enforce the preferred mortgage lien in—
‘‘(1) a civil action in rem for a documented vessel or
a vessel to be documented under chapter 121 of this
title;
‘‘(2) a civil action in personam in admiralty against
the mortgagor, comaker, or guarantor for the
amount of the outstanding indebtedness secured by
the mortgaged vessel or any deficiency in full payment of that indebtedness; and
‘‘(3) a civil action against the mortgagor, comaker,
or guarantor for the amount of the outstanding indebtedness secured by the mortgaged vessel or any
deficiency in full payment of that indebtedness.
‘‘(c) The district courts have original jurisdiction of
a civil action brought under subsection (b) of this section. However, for documented vessels or vessels to be
documented under chapter 121 of this title, this jurisdiction is exclusive of the courts of the States for a
civil action under subsection (b)(1) of this section.’’
EFFECTIVE DATE OF 2008 AMENDMENT
Amendment by Pub. L. 110–181 effective as if included
in the enactment of Pub. L. 109–304, see section

§ 31326

TITLE 46—SHIPPING

3529(b)(2) of Pub. L. 110–181, set out as a note under section 3205 of this title.
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107–295, title II, § 205(e), Nov. 25, 2002, 116 Stat.
2096, provided that: ‘‘This section [see Tables for classification] shall take effect January 1, 2003.’’
CONSTRUCTION OF 1996 AMENDMENTS
Section 1124(c) of Pub. L. 104–324 provided that: ‘‘The
amendments made by subsections (a) and (b) [amending
this section] may not be construed to imply that remedies other than judicial remedies were not available
before the date of enactment of this section [Oct. 19,
1996] to enforce claims for outstanding indebtedness secured by mortgaged vessels.’’

§ 31326. Court sales to enforce preferred mortgage liens and maritime liens and priority of
claims
(a) When a vessel is sold by order of a district
court in a civil action in rem brought to enforce
a preferred mortgage lien or a maritime lien,
any claim in the vessel existing on the date of
sale is terminated, including a possessory common law lien of which a person is deprived under
section 31325(e)(2) of this title, and the vessel is
sold free of all those claims.
(b) Each of the claims terminated under subsection (a) of this section attaches, in the same
amount and in accordance with their priorities
to the proceeds of the sale, except that—
(1) the preferred mortgage lien, including a
preferred mortgage lien on a foreign vessel
whose mortgage has been guaranteed under
chapter 537 of this title, has priority over all
claims against the vessel (except for expenses
and fees allowed by the court, costs imposed
by the court, and preferred maritime liens);
and
(2) for a foreign vessel whose mortgage has
not been guaranteed under chapter 537 of this
title, the preferred mortgage lien is subordinate to a maritime lien for necessaries provided in the United States.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4746; Pub. L. 103–160, div. A, title XIII,
§ 1360, Nov. 30, 1993, 107 Stat. 1816; Pub. L. 109–304,
§ 15(31), Oct. 6, 2006, 120 Stat. 1704.)
HISTORICAL AND REVISION NOTES
Revised section
31326(a) ........................................
31326(b)(1) ....................................
31326(b)(2) ....................................

Source section (U.S. Code)
46:953(b), 961(c)
46:953(b)
46:951 (2d par. proviso)

Section 31326(a) provides for a court-ordered sale to
enforce a preferred mortgage lien or a maritime lien
and the priority of claims. When a mortgaged vessel is
sold by court order in a civil action in rem, any prior
claim in the vessel is terminated—including any possessory common law lien. This subsection makes a substantive change to law by making the process the same
for maritime liens as was provided for preferred mortgage liens. This eliminates the requirement for making
a new mortgagee for a court sale to enforce a maritime
lien. This section also broadens the jurisdiction to
courts in the territories, as defined in section 31301.
Section 31326(b)(1) provides that each of these terminated claims attaches, in the same amount and priority, to the proceeds of sale—except that the preferred
mortgage lien always has priority over these other
claims. However, the preferred mortgage lien is still
subordinated to expenses and fees allowed by the court,

Page 238

costs imposed by the court, and any preferred maritime
liens. This may include statutory fees such as the fee
of the United States Marshal under 28 U.S.C. 1921. Except for broadening its coverage under subsection (a),
this makes no substantive change to law.
Section 31326(b)(2) provides in the case of a foreign
vessel, the preferred mortgage lien is also subordinated
to a maritime lien for necessaries performed or supplied for the vessel in the United States. ‘‘Provided’’
has been substituted for ‘‘provided or supplied’’ for consistency in usage. Except for broadening its coverage
under subsection (a), this paragraph makes no substantive change to law.
AMENDMENTS
2006—Subsec. (b)(1). Pub. L. 109–304, § 15(31)(A), substituted ‘‘chapter 537 of this title,’’ for ‘‘title XI of the
Merchant Marine Act, 1936 (46 App. U.S.C. 1101 et seq.)’’.
Subsec. (b)(2). Pub. L. 109–304, § 15(31)(B), substituted
‘‘chapter 537 of this title’’ for ‘‘title XI of that Act’’.
1993—Subsec. (b)(1). Pub. L. 103–160, § 1260(1), inserted
‘‘, including a preferred mortgage lien on a foreign vessel whose mortgage has been guaranteed under title XI
of the Merchant Marine Act, 1936 (46 App. U.S.C. 1101 et
seq.)’’ after ‘‘preferred mortgage lien’’.
Subsec. (b)(2). Pub. L. 103–160, § 1360(2), inserted
‘‘whose mortgage has not been guaranteed under title
XI of that Act’’ after ‘‘foreign vessel’’.

§ 31327. Forfeiture of mortgagee interest
The interest of a mortgagee in a documented
vessel or a vessel covered by a preferred mortgage under section 31322(d) of this title may be
terminated by a forfeiture of the vessel for a
violation of a law of the United States only if
the mortgagee authorized, consented, or conspired to do the act, failure, or omission that is
the basis of the violation.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4746.)
HISTORICAL AND REVISION NOTES
Revised section
31327 ............................................

Source section (U.S. Code)
46:961(b)

Section 31327 provides for forfeiture of the mortgagee’s interest if the mortgagee authorized, consented,
or conspired to do the act, failure, or omission that is
the basis of the violation that caused forfeiture of the
vessel. This section makes no substantive change to
law.

[§ 31328. Repealed. Pub. L. 104–324, title XI,
§ 1113(b)(1), Oct. 19, 1996, 110 Stat. 3970]
Section, Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988,
102 Stat. 4746, related to limitations on parties serving
as trustees of mortgaged vessel interests.

§ 31329. Court sales of documented vessels
(a) A documented vessel may be sold by order
of a district court only to—
(1) a person eligible to own a documented
vessel under section 12103 of this title; or
(2) a mortgagee of that vessel.
(b) When a vessel is sold to a mortgagee not eligible to own a documented vessel—
(1) the vessel must be held by the mortgagee
for resale;
(2) the vessel held by the mortgagee is subject to chapter 563 of this title; and
(3) the sale of the vessel to the mortgagee is
not a sale to a person not a citizen of the
United States under section 12132 of this title.

Page 239

§ 31330

TITLE 46—SHIPPING

(c) Unless waived by the Secretary of Transportation, a person purchasing a vessel by court
order under subsection (a)(1) of this section or
from a mortgagee under subsection (a)(2) of this
section must document the vessel under chapter
121 of this title.
(d) The vessel may be operated by the mortgagee not eligible to own a documented vessel only
with the approval of the Secretary of Transportation.
(e) A sale of a vessel contrary to this section
is void.
(f) This section does not apply to a documented vessel that has been operated only for
pleasure.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4747; Pub. L. 104–324, title XI, § 1118, Oct. 19,
1996, 110 Stat. 3973; Pub. L. 109–304, § 15(32), Oct.
6, 2006, 120 Stat. 1704; Pub. L. 111–281, title IX,
§ 913(c), Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

31329 ............................................

46:961(f)

Section 31329 sets out certain restrictions on the
court sale of a documented vessel.
Section 31329(a) restricts the sale only to a person eligible to own a documented vessel under section 12102 of
title 46 or to the mortgagee, which may be a trustee
acting as a holder of a preferred mortgage on a documented vessel for the benefit of a person not eligible to
be the holder of a preferred mortgage on that vessel.
Section 31329(b) sets out conditions on the sale to a
trustee acting as a holder of a preferred mortgage on a
documented vessel for the benefit of a person not eligible to be the holder of a preferred mortgage on that
vessel. First, the vessel must be held by the trustee for
resale. Second, while being held for resale, the vessel is
subject to requisition or purchase during a national
emergency under section 902 of the Merchant Marine
Act, 1936 (46 App. U.S.C. 1242). And third, the sale of the
vessel to the trustee is not a sale foreign within the
terms of the First Proviso of section 27 of the Merchant
Marine Act, 1920 (46 App. U.S.C. 883).
Section 31329(c) requires a person that is eligible to
document the vessel that purchases a vessel from the
court to document the vessel. This subsection also requires the person purchasing the vessel from the trustee to document it, thereby restricting to whom the
trustee can sell the vessel. Many documented vessels
have no national defense utility, such as recreational
vessels and fishing vessels. Therefore, both of these restrictions can be waived by the Secretary. As previously discussed, these waivers can be on a case-bycase basis or with a blanket waiver.
Section 31329(d) prohibits a trustee from operating
the vessel without the approval of the Secretary.
Section 31329(e) voids any sale that is done contrary
to this section.
HOUSE FLOOR STATEMENT

Under section 31329(d) a vessel may be operated by
the trustee only with the approval of the Secretary.
Under current law a vessel may be documented by a
trust if all of the members of the trust are citizens of
the United States. If the trust buying the vessel at the
court sale includes foreign investors, the vessel cannot
be documented. The Committee intends in this section
that the vessel will only be ‘‘operated’’ in a maintenance manner, but not in a commercial service.
AMENDMENTS
2010—Subsec. (d). Pub. L. 111–281 substituted ‘‘Secretary of Transportation’’ for ‘‘Secretary’’.

2006—Subsec. (a)(1). Pub. L. 109–304, § 15(32)(A), substituted ‘‘section 12103’’ for ‘‘section 12102’’.
Subsec. (b)(2). Pub. L. 109–304, § 15(32)(B)(i), substituted ‘‘chapter 563 of this title’’ for ‘‘section 902 of
the Merchant Marine Act, 1936 (46 App. U.S.C. 1242)’’.
Subsec. (b)(3). Pub. L. 109–304, § 15(32)(B)(ii), substituted ‘‘sale to a person not a citizen of the United
States under section 12132 of this title’’ for ‘‘sale foreign within the terms of the first proviso of section 27
of the Merchant Marine Act, 1920 (46 App. U.S.C. 883)’’.
1996—Subsec. (f). Pub. L. 104–324 added subsec. (f).

§ 31330. Penalties
(a)(1) A mortgagor shall be fined under title 18,
imprisoned for not more than 2 years, or both, if
the mortgagor—
(A) with intent to defraud, does not disclose
an obligation on a vessel as required by section 31323(a) of this title;
(B) with intent to defraud, incurs a contractual obligation in violation of section 31323(b)
of this title; or
(C) with intent to hinder or defraud an existing or future creditor of the mortgagor or a
lienor of the vessel, files a mortgage with the
Secretary.
(2) A mortgagor is liable to the United States
Government for a civil penalty of not more than
$10,000 if the mortgagor—
(A) does not disclose an obligation on a vessel as required by section 31323(a) of this title;
(B) incurs a contractual obligation in violation of section 31323(b) of this title; or
(C) files with the Secretary a mortgage made
not in good faith.
(b)(1) A person that knowingly violates section
31329 of this title shall be fined under title 18,
imprisoned for not more than 3 years, or both.
(2) A person violating section 31329 of this title
is liable to the Government for a civil penalty of
not more than $25,000.
(3) A vessel involved in a violation under section 31329 of this title and its equipment may be
seized by, and forfeited to, the Government.
(c) If a person not an individual violates this
section, the president or chief executive of the
person also is subject to any penalty provided
under this section.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4747; Pub. L. 104–324, title XI, § 1113(b)(2),
Oct. 19, 1996, 110 Stat. 3970; Pub. L. 111–281, title
IX, § 913(a)(1), (d), Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31330(a) ........................................
31330(b) ........................................
31330(c) ........................................

Source section (U.S. Code)
46:941(b) (1st sentence)
New
46:941(b) (1st sentence)

Section 31330(a) provides for criminal penalties for
not disclosing obligations, incurring contractual obligations in violation of section 31323(b), and filing a
mortgage made not in good faith. This subsection
makes a substantive change to law by adding civil penalties and by making it a crime to record with the Secretary of Transportation a mortgage made not in good
faith with the intent to hinder an existing or future
creditor of the mortgagor or a lienor of the vessel. This
is done since the affidavit of good faith has been eliminated from the elements of a preferred mortgage.
Section 31330(b) adds criminal and civil penalties for
violating the sale and trust requirements under sec-

§ 31341

TITLE 46—SHIPPING

tions 31328 and 31329. It also makes a vessel and its
equipment involved in those violations subject to seizure by the Government.
Section 31330(c) makes the president or chief executive officer of a corporation or association liable as a
mortgagor for the penalties under this section.
HOUSE FLOOR STATEMENT

Subsection (a) of this section adds criminal and civil
penalties for a preferred mortgagor’s failure to carry
out certain requirements under chapter 313 of title 46
(as enacted by this Act).
AMENDMENTS
2010—Subsec. (a)(1)(B). Pub. L. 111–281, § 913(d)(1)(A),
inserted ‘‘or’’ after semicolon.
Subsec. (a)(1)(C). Pub. L. 111–281, § 913(d)(1)(B), substituted ‘‘Secretary.’’ for ‘‘Secretary; or’’.
Pub. L. 111–281, § 913(a)(1), struck out ‘‘of Transportation’’ after ‘‘Secretary’’.
Subsec. (a)(1)(D). Pub. L. 111–281, § 913(d)(1)(C), struck
out subpar. (D) which read as follows: ‘‘with intent to
defraud, does not comply with section 31321(h) of this
title.’’
Subsec. (a)(2)(B) to (D). Pub. L. 111–281, § 913(d)(2), inserted ‘‘or’’ at end of subpar. (B), substituted ‘‘faith.’’
for ‘‘faith; or’’ at end of subpar. (C), and struck out subpar. (D) which read as follows: ‘‘does not comply with
section 31321(h) of this title.’’
1996—Subsec. (b). Pub. L. 104–324 struck out ‘‘31328 or’’
before ‘‘31329’’ in pars. (1) to (3).

SUBCHAPTER III—MARITIME LIENS
§ 31341. Persons presumed to have authority to
procure necessaries
(a) The following persons are presumed to
have authority to procure necessaries for a vessel:
(1) the owner;
(2) the master;
(3) a person entrusted with the management
of the vessel at the port of supply; or
(4) an officer or agent appointed by—
(A) the owner;
(B) a charterer;
(C) an owner pro hac vice; or
(D) an agreed buyer in possession of the
vessel.
(b) A person tortiously or unlawfully in possession or charge of a vessel has no authority to
procure necessaries for the vessel.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4748; Pub. L. 101–225, title III, § 303(5), Dec.
12, 1989, 103 Stat. 1924.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

31341(a) ........................................
31341(b) ........................................

46:972 (1st sentence), 973
46:972 (2d sentence)

Section 31341(a) lists those persons who are presumed
to have authority to procure necessaries for a vessel.
These include the owner, master, or a manager at the
port of supply; and an officer or agent appointed by the
owner, charterer, owner pro hac vice, or buyer in possession of the vessel. This subsection makes no substantive change to law.
Section 31341(b) provides that any person that is tortiously or unlawfully in possession of or in charge of a
vessel has no authority to procure necessaries. This
subsection makes no substantive change to law.
AMENDMENTS
1989—Subsec. (a)(3). Pub. L. 101–225 substituted ‘‘management’’ for ‘‘mangement’’.

Page 240

§ 31342. Establishing maritime liens
(a) Except as provided in subsection (b) of this
section, a person providing necessaries to a vessel on the order of the owner or a person authorized by the owner—
(1) has a maritime lien on the vessel;
(2) may bring a civil action in rem to enforce
the lien; and
(3) is not required to allege or prove in the
action that credit was given to the vessel.
(b) This section does not apply to a public vessel.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4748; Pub. L. 101–225, title III, § 303(6), Dec.
12, 1989, 103 Stat. 1924.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

31342 ............................................

46:971

Section 31342 provides that any authorized person
providing necessaries for a vessel has a maritime lien
on the vessel, may bring a civil action in rem in admiralty to enforce the lien, and is not required to allege
or prove that credit was given to the vessel. ‘‘Providing’’ has been substituted for ‘‘furnishing’’ for consistency with other laws. This section makes no substantive change to law. This section does not supersede
the prohibition under the Public Vessels Act, the Foreign Sovereign Immunities Act, or the Suits in Admiralty Act, on bringing an in rem action against a public
vessel.
AMENDMENTS
1989—Pub. L. 101–225 designated existing provisions as
subsec. (a), substituted ‘‘Except as provided in subsection (b) of this section, a person providing necessaries to a vessel on the order of the owner’’ for ‘‘A
person providing necessaries to a vessel (except a public vessel) on the order of a person listed in section
31341 of this title’’, and added subsec. (b).

§ 31343. Recording and discharging notices of
claim of maritime lien
(a) Except as provided under subsection (d) of
this section, a person claiming a lien on a vessel
documented, or for which an application for documentation has been filed, under chapter 121
may record with the Secretary a notice of that
person’s lien claim on the vessel. To be recordable, the notice must—
(1) state the nature of the lien;
(2) state the date the lien was established;
(3) state the amount of the lien;
(4) state the name and address of the person;
and
(5) be signed and acknowledged.
(b)(1) The Secretary shall record a notice complying with subsection (a) of this section if,
when the notice is presented to the Secretary
for recording, the person having the claim files
with the notice a declaration stating the following:
(A) The information in the notice is true and
correct to the best of the knowledge, information, and belief of the individual who signed it.
(B) A copy of the notice, as presented for recordation, has been sent to each of the following:
(i) The owner of the vessel.
(ii) Each person that recorded under subsection (a) of this section an unexpired no-

Page 241

§ 31343

TITLE 46—SHIPPING

tice of a claim of an undischarged lien on
the vessel.
(iii) The mortgagee of each mortgage filed
or recorded under section 31321 of this title
that is an undischarged mortgage on the vessel.
(2) A declaration under this subsection filed by
a person that is not an individual must be signed
by the president, member, partner, trustee, or
other individual authorized to execute the declaration on behalf of the person.
(c)(1) On full and final discharge of the indebtedness that is the basis for a notice of claim of
lien recorded under subsection (b) of this section, the person having the claim shall provide
the Secretary with an acknowledged certificate
of discharge of the indebtedness. The Secretary
shall record the certificate.
(2) The district courts of the United States
shall have jurisdiction over a civil action in Admiralty to declare that a vessel is not subject to
a lien claimed under subsection (b) of this section, or that the vessel is not subject to the notice of claim of lien, or both, regardless of the
amount in controversy or the citizenship of the
parties. Venue in such an action shall be in the
district where the vessel is found or where the
claimant resides or where the notice of claim of
lien is recorded. The court may award costs and
attorneys fees to the prevailing party, unless
the court finds that the position of the other
party was substantially justified or other circumstances make an award of costs and attorneys fees unjust. The Secretary shall record any
such declaratory order.
(d) A person claiming a lien on a vessel covered by a preferred mortgage under section
31322(d) of this title must record and discharge
the lien as provided by the law of the State in
which the vessel is titled.
(e) A notice of claim of lien recorded under
subsection (b) of this section shall expire 3 years
after the date the lien was established, as such
date is stated in the notice under subsection (a)
of this section.
(f) This section does not alter in any respect
the law pertaining to the establishment of a
maritime lien, the remedy provided by such a
lien, or the defenses thereto, including any defense under the doctrine of laches.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4748; Pub. L. 107–295, title II, § 205(a)(1),
Nov. 25, 2002, 116 Stat. 2095; Pub. L. 111–281, title
IX, § 913(a)(1), Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31343 ............................................

Source section (U.S. Code)
46:925

Section 31343 provides that any person claiming a lien
on a vessel covered by a preferred mortgage may record
a notice of lien. This notice must state the nature of
the lien, date it was established; the amount; and the
name and address of the person claiming a lien, and it
must be acknowledged. The Secretary must record a
notice of lien if it complies with these requirements.
When any part of the indebtedness is discharged, the
claimant shall provide the Secretary with a written,
acknowledged certificate of discharge of the indebtedness, and the Secretary shall record the certificate.
This section makes no substantive change to law.

Section 31343(c) provides that, on the full and final
discharge of an indebtedness that is the basis for a
claim, the person having the claim shall provide the
Secretary with an acknowledged certificate of discharge on the request of the Secretary or owner of the
vessel. This subsection makes a substantive change to
law by not requiring partial discharges to be filed, as
well as making the filing of discharge certificates only
at the request of the Secretary or owner of the vessel.
HOUSE FLOOR STATEMENT

Subsection (d) of this section requires a person claiming a lien on a vessel covered by a preferred mortgage
under section 31322(d) to record and discharge the lien
as provided by the law of the State in which the vessel
is titled.
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281 struck out ‘‘of
Transportation’’ after ‘‘Secretary’’ in introductory provisions.
2002—Pub. L. 107–295, § 205(a)(1)(A), substituted ‘‘notices of claim of maritime lien’’ for ‘‘liens on preferred
mortgage vessels’’ in section catchline.
Subsec. (a). Pub. L. 107–295, § 205(a)(1)(B), substituted
‘‘documented, or for which an application for documentation has been filed, under chapter 121’’ for ‘‘covered by a preferred mortgage filed or recorded under
this chapter’’ in introductory provisions.
Subsec. (b). Pub. L. 107–295, § 205(a)(1)(C), amended
subsec. (b) generally. Prior to amendment, subsec. (b)
read as follows: ‘‘The Secretary shall record a notice
complying with subsection (a) of this section.’’
Subsec. (c). Pub. L. 107–295, § 205(a)(1)(D), amended
subsec. (c) generally. Prior to amendment, subsec. (c)
read as follows: ‘‘On full and final discharge of the indebtedness that is the basis for a claim recorded under
subsection (b) of this section, on request of the Secretary or owner, the person having the claim shall provide the Secretary with an acknowledged certificate of
discharge of the indebtedness. The Secretary shall
record the certificate.’’
Subsecs. (e), (f). Pub. L. 107–295, § 205(a)(1)(E), added
subsecs. (e) and (f).
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107–295 effective Jan. 1, 2003,
see section 205(e) of Pub. L. 107–295, set out as a note
under section 31325 of this title.

Subtitle IV—Regulation of Ocean
Shipping
PART A—OCEAN SHIPPING
Chapter

401.
403.
405.
407.
409.
411.
413.

Sec.

General ..................................................
Agreements ...........................................
Tariffs, Service Contracts, Refunds,
and Waivers ......................................
Controlled Carriers ............................
Ocean
Transportation
Intermediaries ...........................................
Prohibitions and Penalties ...............
Enforcement .........................................

40101
40301
40501
40701
40901
41101
41301

PART B—ACTIONS TO ADDRESS FOREIGN PRACTICES

421.
423.

Regulations Affecting Shipping in
Foreign Trade ................................... 42101
Foreign Shipping Practices .............. 42301
PART C—MISCELLANEOUS

441.

Evidence of Financial Responsibility for Passenger Transportation 44101
PART A—OCEAN SHIPPING
CHAPTER 401—GENERAL

Sec.

40101.

Purposes.

§ 40101

TITLE 46—SHIPPING

Sec.

40102.
40103.
40104.

Definitions.
Administrative exemptions.
Reports filed with the Commission.

§ 40101. Purposes
The purposes of this part are to—
(1) establish a nondiscriminatory regulatory
process for the common carriage of goods by
water in the foreign commerce of the United
States with a minimum of government intervention and regulatory costs;
(2) provide an efficient and economic transportation system in the ocean commerce of
the United States that is, insofar as possible,
in harmony with, and responsive to, international shipping practices;
(3) encourage the development of an economically sound and efficient liner fleet of
vessels of the United States capable of meeting national security needs; and
(4) promote the growth and development of
United States exports through competitive
and efficient ocean transportation and by
placing a greater reliance on the marketplace.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1523.)
HISTORICAL AND REVISION NOTES
Revised
Section
40101 ..........

Source (U.S. Code)
46 App.:1701.

Source (Statutes at Large)
Pub. L. 98–237, § 2, Mar. 20,
1984, 98 Stat. 67; Pub. L.
105–258, title I, § 101, Oct.
14, 1998, 112 Stat. 1902.

EFFECTS ON CERTAIN AGREEMENTS AND CONTRACTS
Pub. L. 98–237, § 20(d), Mar. 20, 1984, 98 Stat. 90; Pub.
L. 105–258, title I, § 117(1), Oct. 14, 1998, 112 Stat. 1914,
provided that: ‘‘All agreements, contracts, modifications, licenses, and exemptions previously issued, approved, or effective under the Shipping Act, 1916
[former 46 U.S.C. App. 801 et seq., see Disposition Table
preceding section 101 of this title], or the Shipping Act
of 1984 [former 46 U.S.C. App. 1701 et seq., see Disposition Table preceding section 101 of this title], shall continue in force and effect as if issued or effective under
this Act, as amended by the Ocean Shipping Reform
Act of 1998 [Pub. L. 105–258, Oct. 14, 1998, 112 Stat. 1902],
and all new agreements, contracts, and modifications
to existing, pending, or new contracts or agreements
shall be considered under this Act, as amended by the
Ocean Shipping Reform Act of 1998.’’

§ 40102. Definitions
In this part:
(1) AGREEMENT.—The term ‘‘agreement’’—
(A) means a written or oral understanding,
arrangement, or association, and any modification or cancellation thereof; but
(B) does not include a maritime labor
agreement.
(2) ANTITRUST LAWS.—The term ‘‘antitrust
laws’’ means—
(A) the Sherman Act (15 U.S.C. 1 et seq.);
(B) sections 73 and 74 of the Wilson Tariff
Act (15 U.S.C. 8, 9);
(C) the Clayton Act (15 U.S.C. 12 et seq.);
(D) the Act of June 19, 1936 (15 U.S.C. 13,
13a, 13b, 21a);
(E) the Federal Trade Commission Act (15
U.S.C. 41 et seq.);
(F) the Antitrust Civil Process Act (15
U.S.C. 1311 et seq.); and

Page 242

(G) Acts supplementary to those Acts.
(3) ASSESSMENT AGREEMENT.—The term ‘‘assessment agreement’’ means an agreement,
whether part of a collective bargaining agreement or negotiated separately, to the extent
the agreement provides for the funding of collectively bargained fringe-benefit obligations
on other than a uniform worker-hour basis, regardless of the cargo handled or type of vessel
or equipment used.
(4) BULK CARGO.—The term ‘‘bulk cargo’’
means cargo that is loaded and carried in bulk
without mark or count.
(5) CHEMICAL PARCEL-TANKER.—The term
‘‘chemical parcel-tanker’’ means a vessel that
has—
(A) a cargo-carrying capability consisting
of individual cargo tanks for bulk chemicals
that—
(i) are a permanent part of the vessel;
and
(ii) have segregation capability with piping systems to permit simultaneous carriage of several bulk chemical cargoes
with minimum risk of cross-contamination; and
(B) a valid certificate of fitness under the
International Maritime Organization Code
for the Construction and Equipment of Ships
Carrying Dangerous Chemicals in Bulk.
(6) COMMON CARRIER.—The term ‘‘common
carrier’’—
(A) means a person that—
(i) holds itself out to the general public
to provide transportation by water of passengers or cargo between the United
States and a foreign country for compensation;
(ii) assumes responsibility for the transportation from the port or point of receipt
to the port or point of destination; and
(iii) uses, for all or part of that transportation, a vessel operating on the high seas
or the Great Lakes between a port in the
United States and a port in a foreign country; but
(B) does not include a carrier engaged in
ocean transportation by ferry boat, ocean
tramp, or chemical parcel-tanker, or by vessel when primarily engaged in the carriage
of perishable agricultural commodities—
(i) if the carrier and the owner of those
commodities are wholly-owned, directly or
indirectly, by a person primarily engaged
in the marketing and distribution of those
commodities; and
(ii) only with respect to the carriage of
those commodities.
(7) CONFERENCE.—The term ‘‘conference’’—
(A) means an association of ocean common
carriers permitted, pursuant to an approved
or effective agreement, to engage in concerted activity and to use a common tariff;
but
(B) does not include a joint service, consortium, pooling, sailing, or transshipment
agreement.
(8) CONTROLLED CARRIER.—The term ‘‘controlled carrier’’ means an ocean common car-

Page 243

TITLE 46—SHIPPING

rier that is, or whose operating assets are, directly or indirectly, owned or controlled by a
government, with ownership or control by a
government being deemed to exist for a carrier
if—
(A) a majority of the interest in the carrier is owned or controlled in any manner by
that government, an agency of that government, or a public or private person controlled by that government; or
(B) that government has the right to appoint or disapprove the appointment of a
majority of the directors, the chief operating officer, or the chief executive officer of
the carrier.
(9) DEFERRED REBATE.—The term ‘‘deferred
rebate’’ means a return by a common carrier
of any freight money to a shipper, where the
return is—
(A) consideration for the shipper giving all
or any portion of its shipments to that or
any other common carrier over a fixed period of time;
(B) deferred beyond the completion of the
service for which it was paid; and
(C) made only if the shipper has agreed to
make a further shipment with that or any
other common carrier.
(10) FOREST PRODUCTS.—The term ‘‘forest
products’’ includes lumber in bundles, rough
timber, ties, poles, piling, laminated beams,
bundled siding, bundled plywood, bundled core
stock or veneers, bundled particle or fiber
boards, bundled hardwood, wood pulp in rolls,
wood pulp in unitized bales, and paper and
paper board in rolls or in pallet or skid-sized
sheets.
(11) INLAND DIVISION.—The term ‘‘inland division’’ means the amount paid by a common
carrier to an inland carrier for the inland portion of through transportation offered to the
public by the common carrier.
(12) INLAND PORTION.—The term ‘‘inland portion’’ means the charge to the public by a
common carrier for the non-ocean portion of
through transportation.
(13) LOYALTY CONTRACT.—The term ‘‘loyalty
contract’’ means a contract with an ocean
common carrier or agreement providing for—
(A) a shipper to obtain lower rates by committing all or a fixed portion of its cargo to
that carrier or agreement; and
(B) a deferred rebate arrangement.
(14) MARINE TERMINAL OPERATOR.—The term
‘‘marine terminal operator’’ means a person
engaged in the United States in the business of
providing wharfage, dock, warehouse, or other
terminal facilities in connection with a common carrier, or in connection with a common
carrier and a water carrier subject to subchapter II of chapter 135 of title 49.
(15) MARITIME LABOR AGREEMENT.—The term
‘‘maritime labor agreement’’—
(A) means—
(i) a collective bargaining agreement between an employer subject to this part, or
a group of such employers, and a labor organization representing employees in the
maritime or stevedoring industry;
(ii) an agreement preparatory to such a
collective bargaining agreement among

§ 40102

members of a multi-employer bargaining
group; or
(iii) an agreement specifically implementing provisions of such a collective
bargaining agreement or providing for the
formation, financing, or administration of
a multi-employer bargaining group; but
(B) does not include an assessment agreement.
(16) NON-VESSEL-OPERATING COMMON
RIER.—The term ‘‘non-vessel-operating

CARcommon carrier’’ means a common carrier that—
(A) does not operate the vessels by which
the ocean transportation is provided; and
(B) is a shipper in its relationship with an
ocean common carrier.

(17) OCEAN COMMON CARRIER.—The term
‘‘ocean common carrier’’ means a vessel-operating common carrier.
(18) OCEAN FREIGHT FORWARDER.—The term
‘‘ocean freight forwarder’’ means a person
that—
(A) in the United States, dispatches shipments from the United States via a common
carrier and books or otherwise arranges
space for those shipments on behalf of shippers; and
(B) processes the documentation or performs related activities incident to those
shipments.
(19) OCEAN TRANSPORTATION INTERMEDIARY.—
The term ‘‘ocean transportation intermediary’’ means an ocean freight forwarder or
a non-vessel-operating common carrier.
(20) SERVICE CONTRACT.—The term ‘‘service
contract’’ means a written contract, other
than a bill of lading or receipt, between one or
more shippers, on the one hand, and an individual ocean common carrier or an agreement
between or among ocean common carriers, on
the other, in which—
(A) the shipper or shippers commit to providing a certain volume or portion of cargo
over a fixed time period; and
(B) the ocean common carrier or the agreement commits to a certain rate or rate
schedule and a defined service level, such as
assured space, transit time, port rotation, or
similar service features.
(21) SHIPMENT.—The term ‘‘shipment’’ means
all of the cargo carried under the terms of a
single bill of lading.
(22) SHIPPER.—The term ‘‘shipper’’ means—
(A) a cargo owner;
(B) the person for whose account the ocean
transportation of cargo is provided;
(C) the person to whom delivery is to be
made;
(D) a shippers’ association; or
(E) a non-vessel-operating common carrier
that accepts responsibility for payment of
all charges applicable under the tariff or
service contract.
(23) SHIPPERS’ ASSOCIATION.—The term ‘‘shippers’ association’’ means a group of shippers
that consolidates or distributes freight on a
nonprofit basis for the members of the group
to obtain carload, truckload, or other volume
rates or service contracts.

§ 40103

TITLE 46—SHIPPING

(24) THROUGH RATE.—The term ‘‘through
rate’’ means the single amount charged by a
common carrier in connection with through
transportation.
(25) THROUGH TRANSPORTATION.—The term
‘‘through transportation’’ means continuous
transportation between origin and destination
for which a through rate is assessed and which
is offered or performed by one or more carriers, at least one of which is a common carrier, between a United States port or point and
a foreign port or point.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1523.)
HISTORICAL AND REVISION NOTES
Revised
Section
40102(1) ......

40102(2)
40102(3)
40102(4)
40102(5)

......
......
......
......

40102(6) ......
40102(7) ......
40102(8) ......
40102(9) ......
40102(10) .....
40102(11) .....
40102(12) .....
40102(13) .....
40102(14) .....
40102(15) .....
40102(16) .....
40102(17) .....
40102(18) .....
40102(19) .....
40102(20)
40102(21)
40102(22)
40102(23)
40102(24)
40102(25)

.....
.....
.....
.....
.....
.....

Source (U.S. Code)
46 App.:1702(1).

Source (Statutes at Large)
Pub. L. 98–237, § 3, Mar. 20,
1984, 98 Stat. 67; Pub. L.
99–307, § 11, May 19, 1986,
100 Stat. 447; Pub. L.
105–258, title I, § 102, Oct.
14, 1998, 112 Stat. 1902;
Pub. L. 105–383, title IV,
§ 424(d), Nov. 13, 1998, 112
Stat. 3441.

46
46
46
46

App.:1702(2).
App.:1702(3).
App.:1702(4).
App.:1702(6) (last
sentence).
46 App.:1702(6) (1st
sentence).
46 App.:1702(7).
46 App.:1702(8).
46 App.:1702(9).
46 App.:1702(10).
46 App.:1702(11).
46 App.:1702(12).
46 App.:1702(13).
46 App.:1702(14).
46 App.:1702(15).
46 App.:1702(17)(B).
46 App.:1702(16).
46 App.:1702(17)(A).
46 App.:1702(17) (1st
sentence).
46 App.:1702(19).
46 App.:1702(20).
46 App.:1702(21).
46 App.:1702(22).
46 App.:1702(23).
46 App.:1702(24).

In the definition of ‘‘service contract’’, the words
‘‘The contract may also specify provisions in the event
of nonperformance on the part of any party’’ are omitted as unnecessary and inappropriate for a definition.
In the definition of ‘‘shipper’’, the words ‘‘non-vesseloperating common carrier’’ are substituted for ‘‘ocean
transportation intermediary, as defined in paragraph
(17)(B) of this section’’ because paragraph (17)(B) contains a definition of ‘‘non-vessel-operating common
carrier’’ which is restated as a separate definition.
The definition of ‘‘Commission’’ is omitted because
the full name of the Federal Maritime Commission is
used the first time the Commission is referred to in
each section. The definition of ‘‘person’’ is omitted as
unnecessary because of 1 U.S.C. 1. The definition of
‘‘United States’’ is omitted because the term is defined
in chapter 1 of the revised title for purposes of the title.
REFERENCES IN TEXT
The Sherman Act, referred to in par. (2)(A), is act
July 2, 1890, ch. 647, 26 Stat. 209, which is classified to
sections 1 to 7 of Title 15, Commerce and Trade. For
complete classification of this Act to the Code, see
Short Title note set out under section 1 of Title 15 and
Tables.
The Clayton Act, referred to in par. (2)(C), is act Oct.
15, 1914, ch. 323, 38 Stat. 730, which is classified generally to sections 12, 13, 14 to 19, 21, and 22 to 27 of Title
15, Commerce and Trade, and sections 52 and 53 of Title
29, Labor. For further details and complete classification of this Act to the Code, see References in Text
note set out under section 12 of Title 15 and Tables.

Page 244

Act of June 19, 1936, referred to in par. (2)(D), is act
June 19, 1936, ch. 592, 49 Stat. 1526, popularly known as
the Robinson-Patman Act, the Robinson-Patman Antidiscrimination Act, and the Robinson-Patman Price
Discrimination Act, which enacted sections 13a, 13b,
and 21a of Title 15, Commerce and Trade, and amended
section 13 of Title 15. For complete classification of
this Act to the Code, see Short Title note set out under
section 13 of Title 15 and Tables.
The Federal Trade Commission Act, referred to in
par. (2)(E), is act Sept. 26, 1914, ch. 311, 38 Stat. 717,
which is classified generally to subchapter I (§ 41 et
seq.) of chapter 2 of Title 15, Commerce and Trade. For
complete classification of this Act to the Code, see section 58 of Title 15 and Tables.
The Antitrust Civil Process Act, referred to in par.
(2)(F), is Pub. L. 87–664, Sept. 19, 1962, 76 Stat. 548, which
is classified generally to chapter 34 (§ 1311 et seq.) of
Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set
out under section 1311 of Title 15 and Tables.

§ 40103. Administrative exemptions
(a) IN GENERAL.—The Federal Maritime Commission, on application or its own motion, may
by order or regulation exempt for the future any
class of agreements between persons subject to
this part or any specified activity of those persons from any requirement of this part if the
Commission finds that the exemption will not
result in substantial reduction in competition or
be detrimental to commerce. The Commission
may attach conditions to an exemption and
may, by order, revoke an exemption.
(b) OPPORTUNITY FOR HEARING.—An order or
regulation of exemption or revocation of an exemption may be issued only if the Commission
has provided an opportunity for a hearing to interested persons and departments and agencies
of the United States Government.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1527.)
HISTORICAL AND REVISION NOTES
Revised
Section
40103 ..........

Source (U.S. Code)
46 App.:1715.

Source (Statutes at Large)
Pub. L. 98–237, § 16, Mar. 20,
1984, 98 Stat. 84; Pub. L.
105–258, title I, § 114, Oct.
14, 1998, 112 Stat. 1912.

§ 40104. Reports filed with the Commission
(a) IN GENERAL.—The Federal Maritime Commission may require a common carrier or an officer, receiver, trustee, lessee, agent, or employee of the carrier to file with the Commission
a periodical or special report, an account,
record, rate, or charge, or a memorandum of
facts and transactions related to the business of
the carrier. The report, account, record, rate,
charge, or memorandum shall be made under
oath if the Commission requires, and shall be
filed in the form and within the time prescribed
by the Commission.
(b) CONFERENCE MINUTES.—Conference minutes
required to be filed with the Commission under
this section may not be released to third parties
or published by the Commission.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1527.)

Page 245

§ 40303

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

40104 ..........

46 App.:1714.

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1528.)
HISTORICAL AND REVISION NOTES

Source (Statutes at Large)
Pub. L. 98–237, § 15, Mar. 20,
1984, 98 Stat. 84; Pub. L.
98–595, § 3(b)(3), Oct. 30,
1984, 98 Stat. 3133; Pub. L.
105–258, title I, § 113, Oct.
14, 1998, 112 Stat. 1912.

CHAPTER 403—AGREEMENTS

Revised
Section

Source (U.S. Code)

40301(a) ......

46 App.:1703(a).

40301(b) ......
40301(c) ......
40301(d) ......

46 App.:1703(b).
46 App.:1703(c).
46 App.:1704(f).

40301(e) ......

46 App.:1704(e) (last
sentence).

Sec.

40301.
40302.
40303.
40304.
40305.
40306.
40307.

Application.
Filing requirements.
Content requirements.
Commission action.
Assessment agreements.
Nondisclosure of information.
Exemption from antitrust laws.

§ 40301. Application
(a) OCEAN COMMON CARRIER AGREEMENTS.—
This part applies to an agreement between or
among ocean common carriers to—
(1) discuss, fix, or regulate transportation
rates, including through rates, cargo space accommodations, and other conditions of service;
(2) pool or apportion traffic, revenues, earnings, or losses;
(3) allot ports or regulate the number and
character of voyages between ports;
(4) regulate the volume or character of cargo
or passenger traffic to be carried;
(5) engage in an exclusive, preferential, or
cooperative working arrangement between
themselves or with a marine terminal operator;
(6) control, regulate, or prevent competition
in international ocean transportation; or
(7) discuss and agree on any matter related
to a service contract.
MARINE TERMINAL OPERATOR AGREEMENTS.—This part applies to an agreement between or among marine terminal operators, or
between or among one or more marine terminal
operators and one or more ocean common carriers, to—
(1) discuss, fix, or regulate rates or other
conditions of service; or
(2) engage in exclusive, preferential, or cooperative working arrangements, to the extent
the agreement involves ocean transportation
in the foreign commerce of the United States.
(b)

(c) ACQUISITIONS.—This part does not apply to
an acquisition by any person, directly or indirectly, of any voting security or assets of any
other person.
(d) MARITIME LABOR AGREEMENTS.—This part
does not apply to a maritime labor agreement.
However, this subsection does not exempt from
this part any rate, charge, regulation, or practice of a common carrier that is required to be
set forth in a tariff or is an essential term of a
service contract, whether or not the rate,
charge, regulation, or practice arises out of, or
is otherwise related to, a maritime labor agreement.
(e) ASSESSMENT AGREEMENTS.—This part (except sections 40305 and 40307(a)) does not apply
to an assessment agreement.

Source (Statutes at Large)
Pub. L. 98–237, § 4, Mar. 20,
1984, 98 Stat. 70; Pub. L.
105–258, title I, § 103, Oct.
14, 1998, 112 Stat. 1904.
Pub. L. 98–237, § 5(e) (last
sentence), (f), Mar. 20,
1984, 98 Stat. 70; Pub. L.
104–88, title III, § 335(c)(2),
Dec. 29, 1995, 109 Stat. 954;
Pub. L. 105–258, title I,
§ 104(a)(2), (b), Oct. 14, 1998,
112 Stat. 1904, 1905.

§ 40302. Filing requirements
(a) IN GENERAL.—A true copy of every agreement referred to in section 40301(a) or (b) of this
title shall be filed with the Federal Maritime
Commission. If the agreement is oral, a complete memorandum specifying in detail the substance of the agreement shall be filed.
(b) EXCEPTIONS.—Subsection (a) does not apply
to—
(1) an agreement related to transportation
to be performed within or between foreign
countries; or
(2) an agreement among common carriers to
establish, operate, or maintain a marine terminal in the United States.
(c) REGULATIONS.—The Commission may by
regulation prescribe the form and manner in
which an agreement shall be filed and any additional information and documents necessary to
evaluate the agreement.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1528.)
HISTORICAL AND REVISION NOTES
Revised
Section
40302 ..........

Source (U.S. Code)
46 App.:1704(a).

Source (Statutes at Large)
Pub. L. 98–237, § 5(a), Mar.
20, 1984, 98 Stat. 70; Pub.
L. 98–595, § 3(b)(1), Oct. 30,
1984, 98 Stat. 3132.

§ 40303. Content requirements
(a) OCEAN COMMON CARRIER AGREEMENTS.—
(1) RESTRICTIONS.—An ocean common carrier
agreement may not—
(A) prohibit or restrict a member of the
agreement from engaging in negotiations for
a service contract with a shipper;
(B) require a member of the agreement to
disclose a negotiation on a service contract,
or the terms of a service contract, other
than those terms required to be published
under section 40502(d) of this title; or
(C) adopt mandatory rules or requirements
affecting the right of an agreement member
to negotiate and enter into a service contract.
(2) VOLUNTARY GUIDELINES.—An ocean common carrier agreement may provide authority
to adopt voluntary guidelines relating to the
terms and procedures of an agreement member’s service contracts if the guidelines explicitly state the right of members of the agree-

§ 40304

TITLE 46—SHIPPING

ment not to follow the guidelines. Any guidelines adopted shall be submitted confidentially
to the Federal Maritime Commission.
(b) CONFERENCE AGREEMENTS.—Each conference agreement must—
(1) state its purpose;
(2) provide reasonable and equal terms for
admission and readmission to conference
membership for any ocean common carrier
willing to serve the particular trade or route;
(3) permit any member to withdraw from
conference membership on reasonable notice
without penalty;
(4) at the request of any member, require an
independent neutral body to police fully the
obligations of the conference and its members;
(5) prohibit the conference from engaging in
conduct prohibited by section 41105(1) or (3) of
this title;
(6) provide for a consultation process designed to promote—
(A) commercial resolution of disputes; and
(B) cooperation with shippers in preventing and eliminating malpractices;
(7) establish procedures for promptly and
fairly considering requests and complaints of
shippers; and
(8) provide that—
(A) any member of the conference may
take independent action on a rate or service
item on not more than 5 days’ notice to the
conference; and
(B) except for an exempt commodity not
published in the conference tariff, the conference will include the new rate or service
item in its tariff for use by that member, effective no later than 5 days after receipt of
the notice, and by any other member that
notifies the conference that it elects to
adopt the independent rate or service item
on or after its effective date, in lieu of the
existing conference tariff provision for that
rate or service item.
AGREEMENTS.—Each
(c)
INTERCONFERENCE
agreement between carriers not members of the
same conference must provide the right of independent action for each carrier. Each agreement
between conferences must provide the right of
independent action for each conference.
(d) VESSEL SHARING AGREEMENTS.—
(1) IN GENERAL.—An ocean common carrier
that is the owner, operator, or bareboat, time,
or slot charterer of a liner vessel documented
under section 12103 or 12111(c) of this title may
agree with an ocean common carrier described
in paragraph (2) to which it charters or subcharters the vessel or space on the vessel that
the charterer or subcharterer may not use or
make available space on the vessel for the carriage of cargo reserved by law for vessels of
the United States.
(2) CARRIER DESCRIBED.—An ocean common
carrier described in this paragraph is one that
is not the owner, operator, or bareboat charterer for at least one year of liner vessels of
the United States that are eligible to be included in the Maritime Security Fleet Program and are enrolled in an Emergency Preparedness Program under chapter 531 of this
title.

Page 246

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1529.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

40303(a) ......

46 App.:1704(c).

40303(b) ......
40303(c) ......
40303(d) ......

46 App.:1704(b).
46 App.:1704(d).
46 App.:1704(g).

Source (Statutes at Large)
Pub. L. 98–237, § 5(b)–(d),
Mar. 20, 1984, 98 Stat. 70;
Pub. L. 105–258, title I,
§ 104(a), Oct. 14, 1998, 112
Stat. 1904.
Pub. L. 98–237, § 5(g), Mar.
20, 1984; as added Pub. L.
105–383, title IV, § 424(a),
Nov. 13, 1998, 112 Stat.
3440.

In subsection (c)(8), the word ‘‘calendar’’ is omitted
as unnecessary.
In subsection (d), the words ‘‘vessel of the United
States’’ are substituted for ‘‘United States-flag vessel’’
(and similar variations) for consistency in the revised
title.

§ 40304. Commission action
(a) NOTICE OF FILING.—Within 7 days after an
agreement is filed, the Federal Maritime Commission shall transmit a notice of the filing to
the Federal Register for publication.
(b) PRELIMINARY REVIEW AND REJECTION.—
After preliminary review, the Commission shall
reject an agreement that it finds does not meet
the requirements of sections 40302 and 40303 of
this title. The Commission shall notify in writing the person filing the agreement of the reason for rejection.
(c) REVIEW AND EFFECTIVE DATE.—Unless rejected under subsection (b), an agreement (other
than an assessment agreement) is effective—
(1) on the 45th day after filing, or on the 30th
day after notice of the filing is published in
the Federal Register, whichever is later; or
(2) if additional information or documents
are requested under subsection (d)—
(A) on the 45th day after the Commission
receives all the additional information and
documents; or
(B) if the request is not fully complied
with, on the 45th day after the Commission
receives the information and documents submitted and a statement of the reasons for
noncompliance with the request.
(d) REQUEST FOR ADDITIONAL INFORMATION.—
Before the expiration of the period specified in
subsection (c)(1), the Commission may request
from the person filing the agreement any additional information and documents the Commission considers necessary to make the determinations required by this section.
(e) MODIFICATION OF REVIEW PERIOD.—
(1) SHORTENING.—On request of the party filing an agreement, the Commission may shorten a period specified in subsection (c), but not
to a date that is less than 14 days after notice
of the filing of the agreement is published in
the Federal Register.
(2) EXTENSION.—The period specified in subsection (c)(2) may be extended only by the
United States District Court for the District
of Columbia in a civil action brought by the
Commission under section 41307(c) of this title.
(f) FIXED TERMS.—The Commission may not
limit the effectiveness of an agreement to a
fixed term.

Page 247

TITLE 46—SHIPPING

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1530.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

40304(a) ......

46 App.:1705(a).

40304(b) ......
40304(c) ......

46 App.:1705(b).
46 App.:1705(c) (1st
sentence).
46 App.:1705(d).
46 App.:1705(e).
46 App.:1705(c) (last
sentence).
46 App.:1705(f).

40304(d) ......
40304(e)(1) ..
40304(e)(2) ..
40304(f) .......

Source (Statutes at Large)
Pub. L. 98–237, § 6(a)–(f),
Mar. 20, 1984, 98 Stat. 72.

§ 40305. Assessment agreements
(a) FILING REQUIREMENT.—An assessment
agreement shall be filed with the Federal Maritime Commission and is effective on filing.
(b) COMPLAINTS.—If a complaint is filed with
the Commission within 2 years after the date of
an assessment agreement, the Commission shall
disapprove, cancel, or modify the agreement, or
an assessment or charge pursuant to the agreement, that the Commission finds, after notice
and opportunity for a hearing, to be unjustly
discriminatory or unfair as between carriers,
shippers, or ports. The Commission shall issue
its final decision in the proceeding within one
year after the date the complaint is filed.
(c) ADJUSTMENTS OF ASSESSMENTS AND
CHARGES.—To the extent that the Commission
finds under subsection (b) that an assessment or
charge is unjustly discriminatory or unfair as
between carriers, shippers, or ports, the Commission shall adjust the assessment or charge
for the period between the filing of the complaint and the final decision by awarding prospective credits or debits to future assessments
and charges. However, if the complainant has
ceased activities subject to the assessment or
charge, the Commission may award reparations.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1531.)
HISTORICAL AND REVISION NOTES
Revised
Section
40305 ..........

Source (U.S. Code)
46 App.:1704(e) (less
last sentence).

Source (Statutes at Large)
Pub. L. 98–237, § 5(e) (less
last sentence), Mar. 20,
1984, 98 Stat. 70; Pub. L.
105–258, title I, § 104(a)(2),
(b)(1), Oct. 14, 1998, 112
Stat. 1904, 1905.

§ 40306. Nondisclosure of information
Information and documents (other than an
agreement) filed with the Federal Maritime
Commission under this chapter are exempt from
disclosure under section 552 of title 5 and may
not be made public except as may be relevant to
an administrative or judicial proceeding. This
section does not prevent disclosure to either
House of Congress or to a duly authorized committee or subcommittee of Congress.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1531.)
HISTORICAL AND REVISION NOTES
Revised
Section
40306 ..........

Source (U.S. Code)
46 App.:1705(j).

Source (Statutes at Large)
Pub. L. 98–237, § 6(j), Mar. 20,
1984, 98 Stat. 73.

§ 40307

The words ‘‘judicial proceeding’’ are substituted for
‘‘judicial action or proceeding’’ to eliminate unnecessary words.

§ 40307. Exemption from antitrust laws
(a) IN GENERAL.—The antitrust laws do not
apply to—
(1) an agreement (including an assessment
agreement) that has been filed and is effective
under this chapter;
(2) an agreement that is exempt under section 40103 of this title from any requirement of
this part;
(3) an agreement or activity within the
scope of this part, whether permitted under or
prohibited by this part, undertaken or entered
into with a reasonable basis to conclude that
it is—
(A) pursuant to an agreement on file with
the Federal Maritime Commission and in effect when the activity takes place; or
(B) exempt under section 40103 of this title
from any filing or publication requirement
of this part;
(4) an agreement or activity relating to
transportation services within or between foreign countries, whether or not via the United
States, unless the agreement or activity has a
direct, substantial, and reasonably foreseeable
effect on the commerce of the United States;
(5) an agreement or activity relating to the
foreign inland segment of through transportation that is part of transportation provided
in a United States import or export trade;
(6) an agreement or activity to provide
wharfage, dock, warehouse, or other terminal
facilities outside the United States; or
(7) an agreement, modification, or cancellation approved before June 18, 1984, by the Commission under section 15 of the Shipping Act,
1916, or permitted under section 14b of that
Act, and any properly published tariff, rate,
fare, or charge, or classification, rule, or regulation explanatory thereof implementing that
agreement, modification, or cancellation.
(b) EXCEPTIONS.—This part does not extend
antitrust immunity to—
(1) an agreement with or among air carriers,
rail carriers, motor carriers, or common carriers by water not subject to this part relating
to transportation within the United States;
(2) a discussion or agreement among common carriers subject to this part relating to
the inland divisions (as opposed to the inland
portions) of through rates within the United
States;
(3) an agreement among common carriers
subject to this part to establish, operate, or
maintain a marine terminal in the United
States; or
(4) a loyalty contract.
(c) RETROACTIVE EFFECT OF DETERMINATIONS.—
A determination by an agency or court that results in the denial or removal of the immunity
to the antitrust laws under subsection (a) does
not remove or alter the antitrust immunity for
the period before the determination.
(d) RELIEF UNDER CLAYTON ACT.—A person
may not recover damages under section 4 of the
Clayton Act (15 U.S.C. 15), or obtain injunctive

§ 40501

TITLE 46—SHIPPING

Page 248

relief under section 16 of that Act (15 U.S.C. 26),
for conduct prohibited by this part.

(6) include copies of any loyalty contract,
omitting the shipper’s name.

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1531.)

(c) ELECTRONIC ACCESS.—A tariff under subsection (a) shall be made available electronically to any person, without time, quantity, or
other limitation, through appropriate access
from remote locations. A reasonable fee may be
charged for such access, except that no fee may
be charged for access by a Federal agency.
(d) TIME-VOLUME RATES.—A rate contained in
a tariff under subsection (a) may vary with the
volume of cargo offered over a specified period
of time.
(e) EFFECTIVE DATES.—
(1) INCREASES.—A new or initial rate or
change in an existing rate that results in an
increased cost to a shipper may not become effective earlier than 30 days after publication.
However, for good cause, the Federal Maritime
Commission may allow the rate to become effective sooner.
(2) DECREASES.—A change in an existing rate
that results in a decreased cost to a shipper
may become effective on publication.

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

40307 ..........

46 App.:1706.

Source (Statutes at Large)
Pub. L. 98–237, § 7, Mar. 20,
1984, 98 Stat. 73; Pub. L.
105–258, title I, § 105, Oct.
14, 1998, 112 Stat. 1905.

Subsection (a)(1) is substituted for ‘‘any agreement
that has been filed under section 1704 of this Appendix
and is effective under section 1704(d) [redesignated as
(e)] or section 1705 of this Appendix’’ for clarity and to
eliminate unnecessary words.
Subsection (a)(2) is substituted for ‘‘any agreement
that . . . is exempt under section 1715 of this Appendix
from any requirement of this chapter’’ in 46 App. U.S.C.
1706(a)(1) for clarity.
In subsection (a)(7), the words ‘‘subject to section
1719(e)(2) of this Appendix’’ are omitted as obsolete.
REFERENCES IN TEXT
Section 15 of the Shipping Act, 1916, referred to in
subsec. (a)(7), which was classified to section 814 of the
former Appendix to this title, was repealed by Pub. L.
104–88, title III, § 335(b)(3), Dec. 29, 1996, 109 Stat. 954.
Section 14b of the Shipping Act, 1916, referred to in
subsec. (a)(7), which was classified to section 813a of
former Title 46, Shipping, was repealed by Pub. L.
98–237, § 20(a), Mar. 20, 1984, 98 Stat. 88.

CHAPTER 405—TARIFFS, SERVICE
CONTRACTS, REFUNDS, AND WAIVERS
Sec.

40501.
40502.
40503.

General rate and tariff requirements.
Service contracts.
Refunds and waivers.

§ 40501. General rate and tariff requirements
(a) AUTOMATED TARIFF SYSTEM.—
(1) IN GENERAL.—Each common carrier and
conference shall keep open to public inspection in an automated tariff system, tariffs
showing all its rates, charges, classifications,
rules, and practices between all points or ports
on its own route and on any through transportation route that has been established. However, a common carrier is not required to state
separately or otherwise reveal in tariffs the
inland divisions of a through rate.
(2) EXCEPTIONS.—Paragraph (1) does not
apply with respect to bulk cargo, forest products, recycled metal scrap, new assembled
motor vehicles, waste paper, or paper waste.
(b) CONTENTS OF TARIFFS.—A tariff under subsection (a) shall—
(1) state the places between which cargo will
be carried;
(2) list each classification of cargo in use;
(3) state the level of compensation, if any, of
any ocean freight forwarder by a carrier or
conference;
(4) state separately each terminal or other
charge, privilege, or facility under the control
of the carrier or conference and any rules that
in any way change, affect, or determine any
part or the total of the rates or charges;
(5) include sample copies of any bill of lading, contract of affreightment, or other document evidencing the transportation agreement; and

(f) MARINE TERMINAL OPERATOR SCHEDULES.—
A marine terminal operator may make available
to the public a schedule of rates, regulations,
and practices, including limitations of liability
for cargo loss or damage, pertaining to receiving, delivering, handling, or storing property at
its marine terminal. Any such schedule made
available to the public is enforceable by an appropriate court as an implied contract without
proof of actual knowledge of its provisions.
(g) REGULATIONS.—
(1) IN GENERAL.—The Commission shall by
regulation prescribe the requirements for the
accessibility and accuracy of automated tariff
systems established under this section. The
Commission, after periodic review, may prohibit the use of any automated tariff system
that fails to meet the requirements established under this section.
(2) REMOTE TERMINALS.—The Commission
may not require a common carrier to provide
a remote terminal for electronic access under
subsection (c).
(3) MARINE TERMINAL OPERATOR SCHEDULES.—
The Commission shall by regulation prescribe
the form and manner in which marine terminal operator schedules authorized by this section shall be published.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1532.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

40501(a) ......

46 App.:1707(a)(1)
(1st, 2d sentences).

40501(b) ......

46 App.:1707(a)(1)
(last sentence).
46 App.:1707(a)(2).
46 App.:1707(b).
46 App.:1707(d).
46 App.:1707(f).
46 App.:1707(g).

40501(c) ......
40501(d) ......
40501(e) ......
40501(f) .......
40501(g) ......

Source (Statutes at Large)
Pub. L. 98–237, § 8(a), (b), (d),
(f), (g), Mar. 20, 1984, 98
Stat. 74; Pub. L. 105–258,
title I, § 106(a), (c), (e), (f),
Oct. 14, 1998, 112 Stat. 1905,
1907.

In subsection (b)(3), the words ‘‘ocean freight forwarder’’ are substituted for ‘‘ocean transportation
intermediary, as defined in section 1702(17)(A) of this

Page 249

§ 40502

TITLE 46—SHIPPING

Appendix’’ because the definition of ‘‘ocean transportation intermediary’’ in section 1702(17)(A) contains a
definition of ‘‘ocean freight forwarder’’ which is restated as a separate definition.
In subsection (e), the word ‘‘calendar’’ is omitted as
unnecessary.
In subsection (f)(1), the words ‘‘subject to section
1709(d) of this Appendix’’ are omitted as unnecessary.

§ 40502. Service contracts
(a) IN GENERAL.—An individual ocean common
carrier or an agreement between or among
ocean common carriers may enter into a service
contract with one or more shippers subject to
the requirements of this part.
(b) FILING REQUIREMENTS.—
(1) IN GENERAL.—Each service contract entered into under this section by an individual
ocean common carrier or an agreement shall
be filed confidentially with the Federal Maritime Commission.
(2) EXCEPTIONS.—Paragraph (1) does not
apply to contracts regarding bulk cargo, forest
products, recycled metal scrap, new assembled
motor vehicles, waste paper, or paper waste.
(c) ESSENTIAL TERMS.—Each service contract
shall include—
(1) the origin and destination port ranges;
(2) the origin and destination geographic
areas in the case of through intermodal movements;
(3) the commodities involved;
(4) the minimum volume or portion;
(5) the line-haul rate;
(6) the duration;
(7) service commitments; and
(8) the liquidated damages for nonperformance, if any.
(d) PUBLICATION OF CERTAIN TERMS.—When a
service contract is filed confidentially with the
Commission, a concise statement of the essential terms specified in paragraphs (1), (3), (4),
and (6) of subsection (c) shall be published and
made available to the general public in tariff
format.
(e) DISCLOSURE OF CERTAIN TERMS.—
(1) DEFINITIONS.—In this subsection, the
terms ‘‘dock area’’ and ‘‘within the port area’’
have the same meaning and scope as in the applicable collective bargaining agreement between the requesting labor organization and
the carrier.
(2) DISCLOSURE.—An ocean common carrier
that is a party to or is otherwise subject to a
collective bargaining agreement with a labor
organization shall, in response to a written request by the labor organization, state whether
it is responsible for the following work at a
dock area or within a port area in the United
States with respect to cargo transportation
under a service contract:
(A) The movement of the shipper’s cargo
on a dock area or within the port area or to
or from railroad cars on a dock area or within the port area.
(B) The assignment of intraport carriage
of the shipper’s cargo between areas on a
dock or within the port area.
(C) The assignment of the carriage of the
shipper’s cargo between a container yard on
a dock area or within the port area and a
rail yard adjacent to the container yard.

(D) The assignment of container freight
station work and container maintenance and
repair work performed at a dock area or
within the port area.
(3) WITHIN REASONABLE TIME.—The common
carrier shall provide the information described
in paragraph (2) to the requesting labor organization within a reasonable period of time.
(4) EXISTENCE OF COLLECTIVE BARGAINING
AGREEMENT.—This subsection does not require
the disclosure of information by an ocean
common carrier unless there exists an applicable and otherwise lawful collective bargaining
agreement pertaining to that carrier. A disclosure by an ocean common carrier may not be
deemed an admission or an agreement that
any work is covered by a collective bargaining
agreement. A dispute about whether any work
is covered by a collective bargaining agreement and the responsibility of an ocean common carrier under a collective bargaining
agreement shall be resolved solely in accordance with the dispute resolution procedures
contained in the collective bargaining agreement and the National Labor Relations Act (29
U.S.C. 151 et seq.), and without reference to
this subsection.
(5) EFFECT UNDER OTHER LAWS.—This subsection does not affect the lawfulness or unlawfulness under this part or any other Federal or State law of any collective bargaining
agreement or element thereof, including any
element that constitutes an essential term of
a service contract.
(f) REMEDY FOR BREACH.—Unless the parties
agree otherwise, the exclusive remedy for a
breach of a service contract is an action in an
appropriate court. The contract dispute resolution forum may not be controlled by or in any
way affiliated with a controlled carrier or by the
government that owns or controls the carrier.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1533.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

40502(a) ......

46 App.:1707(c)(1)
(1st sentence).

40502(b) ......

46 App.:1707(c)(2)
(1st sentence).
46 App.:1707(c)(2)
(last sentence).
46 App.:1707(c)(3).
46 App.:1707(c)(4).
46 App.:1707(c)(1)
(2d, last sentences).

40502(c) ......
40502(d) ......
40502(e) ......
40502(f) .......

Source (Statutes at Large)
Pub. L. 98–237, § 8(c), Mar.
20, 1984, 98 Stat. 75; restated Pub. L. 105–258,
title I, § 106(b), Oct. 14,
1998, 112 Stat. 1905.

In subsection (e)(5), the words ‘‘the National Labor
Relations Act [29 U.S.C. 151 et seq.], the Taft-Hartley
Act [29 U.S.C. 141 et seq.], the Federal Trade Commission Act [15 U.S.C. 41 et seq.], the antitrust laws’’ are
omitted as unnecessary because of the reference to
‘‘any other Federal or State law’’.
REFERENCES IN TEXT
The National Labor Relations Act, referred to in subsec. (e)(4), is act July 5, 1935, ch. 372, 49 Stat. 449, which
is classified generally to subchapter II (§ 151 et seq.) of
chapter 7 of Title 29, Labor. For complete classification
of this Act to the Code, see section 167 of Title 29 and
Tables.

§ 40503

TITLE 46—SHIPPING

§ 40503. Refunds and waivers
The Federal Maritime Commission, on application of a carrier or shipper, may permit a
common carrier or conference to refund a portion of the freight charges collected from a shipper, or to waive collection of a portion of the
charges from a shipper, if—
(1) there is an error in a tariff, a failure to
publish a new tariff, or an error in quoting a
tariff, and the refund or waiver will not result
in discrimination among shippers, ports, or
carriers;
(2) the common carrier or conference, before
filing an application for authority to refund or
waive any charges for an error in a tariff or a
failure to publish a tariff, has published a new
tariff setting forth the rate on which the refund or waiver would be based; and
(3) the application for the refund or waiver is
filed with the Commission within 180 days
from the date of shipment.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1535.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

40503 ..........

46 App.:1707(e).

Source (Statutes at Large)
Pub. L. 98–237, § 8(e), Mar.
20, 1984, 98 Stat. 75; Pub.
L. 105–258, title I, § 106(d),
Oct. 14, 1998, 112 Stat. 1907.

In paragraph (1), the words ‘‘an error in a tariff, a
failure to publish a new tariff’’ are substituted for ‘‘an
error in a, in failing to publish a new tariff’’ to correct
an obvious error in the underlying statute.
In paragraph (2), the words ‘‘or waive’’ are added for
consistency with the reference to a waiver later in the
paragraph.

CHAPTER 407—CONTROLLED CARRIERS
Sec.

40701.
40702.
40703.
40704.
40705.
40706.

Rates.
Rate standards.
Effective date of rates.
Commission review.
Presidential review of Commission orders.
Exceptions.

§ 40701. Rates
(a) IN GENERAL.—A controlled carrier may
not—
(1) maintain a rate or charge in a tariff or
service contract, or charge or assess a rate,
that is below a just and reasonable level; or
(2) establish, maintain, or enforce in a tariff
or service contract a classification, rule, or
regulation that results, or is likely to result,
in the carriage or handling of cargo at a rate
or charge that is below a just and reasonable
level.
(b) COMMISSION PROHIBITION.—The Federal
Maritime Commission, at any time after notice
and opportunity for a hearing, may prohibit the
publication or use of a rate, charge, classification, rule, or regulation that a controlled carrier has failed to demonstrate is just and reasonable.
(c) BURDEN OF PROOF.—In a proceeding under
this section, the burden of proof is on the controlled carrier to demonstrate that its rate,
charge, classification, rule, or regulation is just
and reasonable.

Page 250

(d) VOIDNESS.—A rate, charge, classification,
rule, or regulation that has been suspended or
prohibited by the Commission is void and its use
is unlawful.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1535.)
HISTORICAL AND REVISION NOTES
Revised
Section
40701 ..........

Source (U.S. Code)
46 App.:1708(a).

Source (Statutes at Large)
Pub. L. 98–237, § 9(a), Mar.
20, 1984, 98 Stat. 76; Pub.
L. 102–100, § 5(a), Aug. 17,
1991, 105 Stat. 492; Pub. L.
105–258, title I, § 108(1)–(4),
Oct. 14, 1998, 112 Stat. 1908.

§ 40702. Rate standards
(a) DEFINITION.—In this section, the term
‘‘constructive costs’’ means the costs of another
carrier, other than a controlled carrier, operating similar vessels and equipment in the same or
a similar trade.
(b) STANDARDS.—In determining whether a
rate, charge, classification, rule, or regulation
of a controlled carrier is just and reasonable,
the Federal Maritime Commission—
(1) shall take into account whether the rate
or charge that has been published or assessed,
or that would result from the pertinent classification, rule, or regulation, is below a level
that is fully compensatory to the controlled
carrier based on the carrier’s actual costs or
constructive costs; and
(2) may take into account other appropriate
factors, including whether the rate, charge,
classification, rule, or regulation is—
(A) the same as, or similar to, those published or assessed by other carriers in the
same trade;
(B) required to ensure movement of particular cargo in the same trade; or
(C) required to maintain acceptable continuity, level, or quality of common carrier
service to or from affected ports.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1536.)
HISTORICAL AND REVISION NOTES
Revised
Section
40702 ..........

Source (U.S. Code)
46 App.:1708(b).

Source (Statutes at Large)
Pub. L. 98–237, § 9(b), Mar.
20, 1984, 98 Stat. 76; Pub.
L.
105–258,
title
I,
§ 108(5)–(7), Oct. 14, 1998,
112 Stat. 1908.

§ 40703. Effective date of rates
Notwithstanding section 40501(e) of this title
and except for service contracts, a rate, charge,
classification, rule, or regulation of a controlled
carrier may not become effective, without special permission of the Federal Maritime Commission, until the 30th day after publication.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1536.)

Page 251
HISTORICAL AND REVISION NOTES
Revised
Section
40703 ..........

§ 40901

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1708(c) (1st
sentence).

Source (Statutes at Large)
Pub. L. 98–237, § 9(c) (1st sentence), Mar. 20, 1984, 98
Stat. 76; Pub. L. 102–100,
§ 5(b), Aug. 17, 1991, 105
Stat. 492; Pub. L. 105–258,
title I, § 108(8), Oct. 14,
1998, 112 Stat. 1908.

§ 40704. Commission review
(a) REQUEST FOR JUSTIFICATION.—On request of
the Federal Maritime Commission, a controlled
carrier shall file with the Commission, within 20
days of the request, a statement of justification
that sufficiently details the carrier’s need and
purpose for an existing or proposed rate, charge,
classification, rule, or regulation and upon
which the Commission may reasonably base a
determination of its lawfulness.
(b) DETERMINATION.—Within 120 days after receipt of information requested under subsection
(a), the Commission shall determine whether the
rate, charge, classification, rule, or regulation
may be unjust and unreasonable.
(c) SHOW CAUSE ORDER.—Whenever the Commission is of the opinion that a rate, charge,
classification, rule, or regulation published or
assessed by a controlled carrier may be unjust
and unreasonable, the Commission shall issue an
order to the controlled carrier to show cause
why the rate, charge, classification, rule, or regulation should not be prohibited.
(d) SUSPENSION PENDING DETERMINATION.—
(1) NOT YET EFFECTIVE.—Pending a determination of the lawfulness of a rate, charge,
classification, rule, or regulation in a proceeding under subsection (c), the Commission may
suspend the rate, charge, classification, rule,
or regulation at any time before its effective
date.
(2) ALREADY EFFECTIVE.—If a rate, charge,
classification, rule, or regulation has already
become effective, the Commission, on issuance
of an order to show cause, may suspend the
rate, charge, classification, rule, or regulation
on at least 30 days’ notice to the controlled
carrier.
(3) MAXIMUM SUSPENSION.—A period of suspension under this subsection may not exceed
180 days.
(e) REPLACEMENT DURING SUSPENSION.—Whenever the Commission has suspended a rate,
charge, classification, rule, or regulation under
this section, the controlled carrier may publish
a new rate, charge, classification, rule, or regulation to take effect immediately during the
suspension in lieu of the suspended rate, charge,
classification, rule, or regulation. However, the
Commission may reject the new rate, charge,
classification, rule, or regulation if the Commission believes it is unjust and unreasonable.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1536.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

40704 ..........

46 App.:1708(c) (last
sentence), (d).

Pub. L. 98–237, § 9(c) (last
sentence), (d), Mar. 20,
1984, 98 Stat. 76; Pub. L.
105–258, title I, § 108(9)–(15),
Oct. 14, 1998, 112 Stat. 1908.

In subsection (d)(1), the words ‘‘in a proceeding under
subsection (c)’’ are substituted for ‘‘in such a proceeding’’ for clarity.

§ 40705. Presidential review of Commission orders
(a) TRANSMISSION TO PRESIDENT.—The Federal
Maritime Commission shall transmit to the
President, concurrently with publication thereof, each order of suspension or final order of prohibition issued under section 40704 of this title.
(b) PRESIDENTIAL REQUEST AND COMMISSION ACTION.—Within 10 days after receipt or the effective date of a Commission order referred to in
subsection (a), the President, in writing, may request the Commission to stay the effect of the
order if the President finds that the stay is required for reasons of national defense or foreign
policy. The reasons shall be specified in the request. The Commission shall immediately grant
the request by issuing an order in which the
President’s request shall be described. During a
stay, the President shall, whenever practicable,
attempt to resolve the matter by negotiating
with representatives of the applicable foreign
governments.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1537.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

40705 ..........

46 App.:1708(e).

Source (Statutes at Large)
Pub. L. 98–237, § 9(e), Mar.
20, 1984, 98 Stat. 77; Pub.
L. 105–258, title I, § 108(16),
Oct. 14, 1998, 112 Stat. 1909.

In subsection (b), the words ‘‘Notwithstanding any
other law’’ are omitted as unnecessary.

§ 40706. Exceptions
This chapter does not apply to—
(1) a controlled carrier of a foreign country
whose vessels are entitled by a treaty of the
United States to receive national or most-favored-nation treatment; or
(2) a trade served only by controlled carriers.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1537.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

40706 ..........

46 App.:1708(f).

Source (Statutes at Large)
Pub. L. 98–237, § 9(f), Mar. 20,
1984, 98 Stat. 77; Pub. L.
105–258,
title
I,
§ 108(17)–(19), Oct. 14, 1998,
112 Stat. 1909.

In paragraph (1), the words ‘‘foreign country’’ are
substituted for ‘‘state’’ for clarity and consistency.

CHAPTER 409—OCEAN TRANSPORTATION
INTERMEDIARIES
Sec.

40901.
40902.
40903.
40904.

License requirement.
Financial responsibility.
Suspension or revocation of license.
Compensation by common carriers.

§ 40901. License requirement
(a) IN GENERAL.—A person in the United
States may not act as an ocean transportation

§ 40902

TITLE 46—SHIPPING

intermediary unless the person holds an ocean
transportation intermediary’s license issued by
the Federal Maritime Commission. The Commission shall issue a license to a person that the
Commission determines to be qualified by experience and character to act as an ocean transportation intermediary.
(b) EXCEPTION.—A person whose primary business is the sale of merchandise may forward
shipments of the merchandise for its own account
without
an
ocean
transportation
intermediary’s license.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1538.)

Page 252

ages claimed arise from the transportation-related activities of the insured ocean transportation intermediary, as defined by the Commission.
(d) RESIDENT AGENT.—An ocean transportation
intermediary not domiciled in the United States
shall designate a resident agent in the United
States for receipt of service of judicial and administrative process, including subpoenas.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1538.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

HISTORICAL AND REVISION NOTES
40902 ..........
Revised
Section
40901(a) ......

40901(b) ......

Source (U.S. Code)
46 App.:1718(a).

46 App.:1718(b).

Source (Statutes at Large)
Pub. L. 98–237, § 19(a), (d),
Mar. 20, 1984, 98 Stat. 87,
88; Pub. L. 105–258, title I,
§ 116, Oct. 14, 1998, 112
Stat. 1912.

Pub. L. 98–237, § 19(b), Mar.
20, 1984; added Pub. L.
105–258, title I, § 116(4),
Oct. 14, 1998, 112 Stat. 1913.

In subsection (b), in paragraphs (2) and (3), the words
‘‘described in section 1702(17) of this Appendix’’ are
omitted as unnecessary.

46 App.:1718(d).

§ 40903. Suspension or revocation of license
§ 40902. Financial responsibility
(a) IN GENERAL.—A person may not act as an
ocean transportation intermediary unless the
person furnishes a bond, proof of insurance, or
other surety—
(1) in a form and amount determined by the
Federal Maritime Commission to insure financial responsibility; and
(2) issued by a surety company found acceptable by the Secretary of the Treasury.
(b) SCOPE OF FINANCIAL RESPONSIBILITY.—A
bond, insurance, or other surety obtained under
this section—
(1) shall be available to pay any penalty assessed under section 41109 of this title or any
order for reparation issued under section 41305
of this title;
(2) may be available to pay any claim
against an ocean transportation intermediary
arising from its transportation-related activities—
(A) with the consent of the insured ocean
transportation intermediary and subject to
review by the surety company; or
(B) when the claim is deemed valid by the
surety company after the ocean transportation intermediary has failed to respond to
adequate notice to address the validity of
the claim; and
(3) shall be available to pay any judgment
for damages against an ocean transportation
intermediary arising from its transportationrelated activities, if the claimant has first attempted to resolve the claim under paragraph
(2) and the claim has not been resolved within
a reasonable period of time.
(c) REGULATIONS ON COURT JUDGMENTS.—The
Commission shall prescribe regulations for the
purpose of protecting the interests of claimants,
ocean transportation intermediaries, and surety
companies with respect to the process of pursuing claims against ocean transportation intermediary bonds, insurance, or sureties through
court judgments. The regulations shall provide
that a judgment for monetary damages may not
be enforced except to the extent that the dam-

(a) FAILURE TO MAINTAIN QUALIFICATIONS OR
TO COMPLY.—The Federal Maritime Commission, after notice and opportunity for a hearing,
shall suspend or revoke an ocean transportation
intermediary’s license if the Commission finds
that the ocean transportation intermediary—
(1) is not qualified to provide intermediary
services; or
(2) willfully failed to comply with a provision of this part or with an order or regulation
of the Commission.
(b) FAILURE TO MAINTAIN BOND, PROOF OF INSURANCE, OR OTHER SURETY.—The Commission
may
revoke
an
ocean
transportation
intermediary’s license for failure to maintain a
bond, proof of insurance, or other surety as required by section 40902(a) of this title.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1539.)
HISTORICAL AND REVISION NOTES
Revised
Section
40903 ..........

Source (U.S. Code)
46 App.:1718(c).

Source (Statutes at Large)
Pub. L. 98–237, § 19(c), Mar.
20, 1984, 98 Stat. 88; Pub.
L. 105–258, title I, § 116,
Oct. 14, 1998, 112 Stat. 1912.

In subsection (a)(2), the words ‘‘lawful’’ and ‘‘rule’’
are omitted as unnecessary.

§ 40904. Compensation by common carriers
(a) CERTIFICATION OF LICENSE AND SERVICES.—
A common carrier may compensate an ocean
freight forwarder for a shipment dispatched for
others only when the ocean freight forwarder
has certified in writing that it holds an ocean
transportation intermediary’s license (if required under section 40901 of this title) and has—
(1) engaged, booked, secured, reserved, or
contracted directly with the carrier or its
agent for space aboard a vessel or confirmed
the availability of the space; and
(2) prepared and processed the ocean bill of
lading, dock receipt, or other similar document for the shipment.
(b) DUAL COMPENSATION.—A common carrier
may not pay compensation for services de-

Page 253

scribed in subsection (a) more than once on the
same shipment.
(c) BENEFICIAL INTEREST SHIPMENTS.—An
ocean freight forwarder may not receive compensation from a common carrier for a shipment
in which the ocean freight forwarder has a direct or indirect beneficial interest. A common
carrier may not knowingly pay compensation on
that shipment.
(d) LIMITS ON AUTHORITY OF CONFERENCE OR
GROUP.—A conference or group of two or more
ocean common carriers in the foreign commerce
of the United States that is authorized to agree
on the level of compensation paid to an ocean
freight forwarder may not—
(1) deny a member of the conference or group
the right, upon notice of not more than 5 days,
to take independent action on any level of
compensation paid to an ocean freight forwarder; or
(2) agree to limit the payment of compensation to an ocean freight forwarder to less than
1.25 percent of the aggregate of all rates and
charges applicable under a tariff and assessed
against the cargo on which the services of the
ocean freight forwarder are provided.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1539.)
HISTORICAL AND REVISION NOTES

§ 41102. General prohibitions
(a) OBTAINING TRANSPORTATION AT LESS THAN
APPLICABLE RATES.—A person may not knowingly and willfully, directly or indirectly, by
means of false billing, false classification, false
weighing, false report of weight, false measurement, or any other unjust or unfair device or
means, obtain or attempt to obtain ocean transportation for property at less than the rates or
charges that would otherwise apply.
(b) OPERATING CONTRARY TO AGREEMENT.—A
person may not operate under an agreement required to be filed under section 40302 or 40305 of
this title if—
(1) the agreement has not become effective
under section 40304 of this title or has been rejected, disapproved, or canceled; or
(2) the operation is not in accordance with
the terms of the agreement or any modifications to the agreement made by the Federal
Maritime Commission.
(c) PRACTICES IN HANDLING PROPERTY.—A common carrier, marine terminal operator, or ocean
transportation intermediary may not fail to establish, observe, and enforce just and reasonable
regulations and practices relating to or connected with receiving, handling, storing, or delivering property.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1540.)

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

HISTORICAL AND REVISION NOTES

40904 ..........

46 App.:1718(e).

Pub. L. 98–237, § 19(e), Mar.
20, 1984, 98 Stat. 88; Pub.
L. 105–258, title I, § 116,
Oct. 14, 1998, 112 Stat. 1912.

In this section, the words ‘‘ocean freight forwarder’’
are substituted for ‘‘ocean transportation intermediary, as defined in section 1702(17)(A) of this Appendix’’ and ‘‘ocean transportation intermediary’’ because
the definition of ‘‘ocean transportation intermediary’’
in section 1702(17)(A) contains a definition of ‘‘ocean
freight forwarder’’ which is restated as a separate definition.
In subsection (d)(1), the word ‘‘calendar’’ is omitted
as unnecessary.

CHAPTER 411—PROHIBITIONS AND
PENALTIES
Sec.

41101.
41102.
41103.
41104.
41105.
41106.
41107.
41108.
41109.

§ 41103

TITLE 46—SHIPPING

Joint ventures and consortiums.
General prohibitions.
Disclosure of information.
Common carriers.
Concerted action.
Marine terminal operators.
Monetary penalties.
Additional penalties.
Assessment of penalties.

§ 41101. Joint ventures and consortiums
In this chapter, a joint venture or consortium
of two or more common carriers operating as a
single entity is deemed to be a single common
carrier.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1540.)
HISTORICAL AND REVISION NOTES
Revised
Section
41101 ..........

Source (U.S. Code)
46 App.:1709(e).

Source (Statutes at Large)
Pub. L. 98–237, § 10(e), Mar.
20, 1984, 98 Stat. 80.

Revised
Section

Source (U.S. Code)

41102(a) ......

46 App.:1709(a)(1).

41102(b) ......

46 App.:1709(a)(2),
(3).
46 App.:1709(d)(1).

41102(c) ......

Source (Statutes at Large)
Pub. L. 98–237, § 10(a), Mar.
20, 1984, 98 Stat. 77.
Pub. L. 98–237, § 10(d)(1),
Mar. 20, 1984, 98 Stat. 77;
Pub. L. 105–258, title I,
§ 109(c)(2), Oct. 14, 1998, 112
Stat. 1909.

§ 41103. Disclosure of information
(a) PROHIBITION.—A common carrier, marine
terminal operator, or ocean freight forwarder,
either alone or in conjunction with any other
person, directly or indirectly, may not knowingly disclose, offer, solicit, or receive any information concerning the nature, kind, quantity,
destination, consignee, or routing of any property tendered or delivered to a common carrier,
without the consent of the shipper or consignee,
if the information—
(1) may be used to the detriment or prejudice of the shipper, the consignee, or any common carrier; or
(2) may improperly disclose its business
transaction to a competitor.
(b) EXCEPTIONS.—Subsection (a) does not prevent providing the information—
(1) in response to legal process;
(2) to the Federal Maritime Commission or
an agency of the United States Government;
or
(3) to an independent neutral body operating
within the scope of its authority to fulfill the
policing obligations of the parties to an agreement effective under this part.
(c) DISCLOSURE FOR DETERMINING BREACH OR
COMPILING STATISTICS.—An ocean common car-

§ 41104

TITLE 46—SHIPPING

rier that is a party to a conference agreement
approved under this part, a receiver, trustee,
lessee, agent, or employee of the carrier, or any
other person authorized by the carrier to receive
information—
(1) may give information to the conference
or any person or agency designated by the conference, for the purpose of—
(A) determining whether a shipper or consignee has breached an agreement with the
conference or its member lines;
(B) determining whether a member of the
conference has breached the conference
agreement; or
(C) compiling statistics of cargo movement; and
(2) may not prevent the conference or its
designee from soliciting or receiving information for any of those purposes.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1540.)
HISTORICAL AND REVISION NOTES
Revised
Section
41103(a) ......

41103(b) ......
41103(c) ......

Source (U.S. Code)
46 App.:1709(b)(13),
(d)(3) (related to
(b)(13)), (5).

Source (Statutes at Large)
Pub. L. 98–237, § 10(b)(13),
(words after cl. (13)), (d)(3)
(related to (b)(13)), (5),
Mar. 20, 1984, 98 Stat. 79,
80; Pub. L. 101–595, title
VII, § 710(c)(1), (2), Nov. 16,
1990, 104 Stat. 2997; Pub. L.
105–258, title I, § 109(a)(10),
(11), (16), (17), (c)(3), Oct.
14, 1998, 112 Stat. 1910,
1911.

46 App.:1709(b)
(next-to-last sentence).
46 App.:1709(b) (last
sentence).

In subsection (a), the words ‘‘marine terminal operator, or ocean freight forwarder’’ are added because of 46
App. U.S.C. 1709(d)(3) and (5). The words ‘‘ocean freight
forwarder’’ are substituted for ‘‘ocean transportation
intermediaries, as defined by section 1702(17)(A) of this
Appendix’’ in 46 App. U.S.C. 1709(d)(5) because the definition of ‘‘ocean transportation intermediary’’ in section 1702(17)(A) contains a definition of ‘‘ocean freight
forwarder’’ which is restated as a separate definition.
In subsection (b), the words ‘‘does not prevent’’ are
substituted for ‘‘Nothing . . . shall be construed to prevent’’ to eliminate unnecessary words.
In subsection (c)(1), the words ‘‘may give information’’ are substituted for ‘‘Nor shall it be prohibited
. . . to give information’’ to eliminate unnecessary
words. The words ‘‘firm, corporation’’ are omitted as
unnecessary because firms and corporations are persons.
In subsection (c)(2), the words ‘‘may not prevent’’ are
substituted for ‘‘Nor shall it be prohibited . . . to prevent’’ to reflect the probable intent of Congress. The
words ‘‘but the use of such information for any other
purpose prohibited by this chapter or any other Act is
prohibited’’ are omitted as unnecessary.

§ 41104. Common carriers
A common carrier, either alone or in conjunction with any other person, directly or indirectly, may not—
(1) allow a person to obtain transportation
for property at less than the rates or charges
established by the carrier in its tariff or service contract by means of false billing, false
classification, false weighing, false measurement, or any other unjust or unfair device or
means;

Page 254

(2) provide service in the liner trade that is—
(A) not in accordance with the rates,
charges, classifications, rules, and practices
contained in a tariff published or a service
contract entered into under chapter 405 of
this title, unless excepted or exempted under
section 40103 or 40501(a)(2) of this title; or
(B) under a tariff or service contract that
has been suspended or prohibited by the Federal Maritime Commission under chapter 407
or 423 of this title;
(3) retaliate against a shipper by refusing, or
threatening to refuse, cargo space accommodations when available, or resort to other
unfair or unjustly discriminatory methods because the shipper has patronized another carrier, or has filed a complaint, or for any other
reason;
(4) for service pursuant to a tariff, engage in
any unfair or unjustly discriminatory practice
in the matter of—
(A) rates or charges;
(B) cargo classifications;
(C) cargo space accommodations or other
facilities, with due regard being given to the
proper loading of the vessel and the available tonnage;
(D) loading and landing of freight; or
(E) adjustment and settlement of claims;
(5) for service pursuant to a service contract,
engage in any unfair or unjustly discriminatory practice in the matter of rates or charges
with respect to any port;
(6) use a vessel in a particular trade for the
purpose of excluding, preventing, or reducing
competition by driving another ocean common
carrier out of that trade;
(7) offer or pay any deferred rebates;
(8) for service pursuant to a tariff, give any
undue or unreasonable preference or advantage or impose any undue or unreasonable
prejudice or disadvantage;
(9) for service pursuant to a service contract,
give any undue or unreasonable preference or
advantage or impose any undue or unreasonable prejudice or disadvantage with respect to
any port;
(10) unreasonably refuse to deal or negotiate;
(11) knowingly and willfully accept cargo
from or transport cargo for the account of an
ocean transportation intermediary that does
not have a tariff as required by section 40501 of
this title and a bond, insurance, or other surety as required by section 40902 of this title; or
(12) knowingly and willfully enter into a
service contract with an ocean transportation
intermediary that does not have a tariff as required by section 40501 of this title and a bond,
insurance, or other surety as required by section 40902 of this title, or with an affiliate of
such an ocean transportation intermediary.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1541.)

Page 255
HISTORICAL AND REVISION NOTES
Revised
Section
41104 ..........

§ 41107

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1709(b)
(1)–(12).

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1542.)
HISTORICAL AND REVISION NOTES

Source (Statutes at Large)
Pub. L. 98–237, § 10(b)(1)–(12),
Mar. 20, 1984, 98 Stat. 77;
Pub. L. 101–595, title VII,
§ 710(c), Nov. 16, 1990, 104
Stat. 2997; Pub. L. 102–251,
title II, § 201(b), Mar. 9,
1992, 106 Stat. 60; Pub. L.
105–258, title I, § 109(a),
Oct. 14, 1998, 112 Stat. 1909;
Pub. L. 105–383, title IV,
§ 424(b), Nov. 13, 1998, 112
Stat. 3441.

§ 41105. Concerted action
A conference or group of two or more common
carriers may not—
(1) boycott or take any other concerted action resulting in an unreasonable refusal to
deal;
(2) engage in conduct that unreasonably restricts the use of intermodal services or technological innovations;
(3) engage in any predatory practice designed to eliminate the participation, or deny
the entry, in a particular trade of a common
carrier not a member of the conference, a
group of common carriers, an ocean tramp, or
a bulk carrier;
(4) negotiate with a non-ocean carrier or
group of non-ocean carriers (such as truck,
rail, or air operators) on any matter relating
to rates or services provided to ocean common
carriers within the United States by those
non-ocean carriers, unless the negotiations
and any resulting agreements are not in violation of the antitrust laws and are consistent
with the purposes of this part, except that this
paragraph does not prohibit the setting and
publishing of a joint through rate by a conference, joint venture, or association of ocean
common carriers;
(5) deny in the export foreign commerce of
the United States compensation to an ocean
freight forwarder or limit that compensation
to less than a reasonable amount;
(6) allocate shippers among specific carriers
that are parties to the agreement or prohibit
a carrier that is a party to the agreement from
soliciting cargo from a particular shipper, except as—
(A) authorized by section 40303(d) of this
title;
(B) required by the law of the United
States or the importing or exporting country; or
(C) agreed to by a shipper in a service contract;
(7) for service pursuant to a service contract,
engage in any unjustly discriminatory practice in the matter of rates or charges with respect to any locality, port, or person due to
the person’s status as a shippers’ association
or ocean transportation intermediary; or
(8) for service pursuant to a service contract,
give any undue or unreasonable preference or
advantage or impose any undue or unreasonable prejudice or disadvantage with respect to
any locality, port, or person due to the person’s status as a shippers’ association or ocean
transportation intermediary.

Revised
Section
41105 ..........

Source (U.S. Code)
46 App.:1709(c).

Source (Statutes at Large)
Pub. L. 98–237, § 10(c), Mar.
20, 1984, 98 Stat. 77; Pub.
L. 105–258, title I, § 109(b),
Oct. 14, 1998, 112 Stat. 1910;
Pub. L. 105–383, title IV,
§ 424(b), Nov. 13, 1998, 112
Stat. 3441.

In paragraph (5), the words ‘‘ocean freight forwarder’’
are substituted for ‘‘ocean transportation intermediary, as defined by section 1702(17)(A) of this Appendix’’ because the definition of ‘‘ocean transportation
intermediary’’ in section 1702(17)(A) contains a definition of ‘‘ocean freight forwarder’’ which is restated as
a separate definition.

§ 41106. Marine terminal operators
A marine terminal operator may not—
(1) agree with another marine terminal operator or with a common carrier to boycott, or
unreasonably discriminate in the provision of
terminal services to, a common carrier or
ocean tramp;
(2) give any undue or unreasonable preference or advantage or impose any undue or
unreasonable prejudice or disadvantage with
respect to any person; or
(3) unreasonably refuse to deal or negotiate.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1543.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

41106(1) ......

46 App.:1709(d)(2).

41106(2) ......
41106(3) ......

46 App.:1709(d)(4).
46 App.:1709(d)(3)
(related to
(b)(10)).

Source (Statutes at Large)
Pub. L. 98–237, § 10(d)(2), (3)
(related to (b)(10)), (4),
Mar. 20, 1984, 98 Stat. 77;
Pub. L. 105–258, title I,
§ 109(c), Oct. 14, 1998, 112
Stat. 1910.

§ 41107. Monetary penalties
(a) IN GENERAL.—A person that violates this
part or a regulation or order of the Federal Maritime Commission issued under this part is liable to the United States Government for a civil
penalty. Unless otherwise provided in this part,
the amount of the penalty may not exceed $5,000
for each violation or, if the violation was willfully and knowingly committed, $25,000 for each
violation. Each day of a continuing violation is
a separate violation.
(b) LIEN ON CARRIER’S VESSELS.—The amount
of a civil penalty imposed on a common carrier
under this section constitutes a lien on the vessels operated by the carrier. Any such vessel is
subject to an action in rem to enforce the lien in
the district court of the United States for the
district in which it is found.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1543.)
HISTORICAL AND REVISION NOTES
Revised
Section
41107 ..........

Source (U.S. Code)
46 App.:1712(a).

Source (Statutes at Large)
Pub. L. 98–237, § 13(a), Mar.
20, 1984, 98 Stat. 82; Pub.
L. 105–258, title I, § 112(a),
Oct. 14, 1998, 112 Stat. 1911.

§ 41108

TITLE 46—SHIPPING

In subsection (b), the words ‘‘is subject to an action
in rem to enforce the lien’’ are substituted for ‘‘may be
libeled therefore’’ to modernize the language.

§ 41108. Additional penalties
(a) SUSPENSION OF TARIFFS.—For a violation of
section 41104(1), (2), or (7) of this title, the Federal Maritime Commission may suspend any or
all tariffs of the common carrier, or that common carrier’s right to use any or all tariffs of
conferences of which it is a member, for a period
not to exceed 12 months.
(b) OPERATING UNDER SUSPENDED TARIFF.—A
common carrier that accepts or handles cargo
for carriage under a tariff that has been suspended, or after its right to use that tariff has
been suspended, is liable to the United States
Government for a civil penalty of not more than
$50,000 for each shipment.
(c) FAILURE TO PROVIDE INFORMATION.—
(1) PENALTIES.—If the Commission finds,
after notice and opportunity for a hearing,
that a common carrier has failed to supply information ordered to be produced or compelled
by subpoena under section 41303 of this title,
the Commission may—
(A) suspend any or all tariffs of the carrier
or the carrier’s right to use any or all tariffs
of conferences of which it is a member; and
(B) request the Secretary of Homeland Security to refuse or revoke any clearance required for a vessel operated by the carrier,
and when so requested, the Secretary shall
refuse or revoke the clearance.

Page 256
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

41108(a) ......

46 App.:1712(b)(1).

41108(b) ......
41108(c) ......

46 App.:1712(b)(3).
46 App.:1712(b)(2),
(4), (5).
46 App.:1712(b)(6).
46 App.:1710a(h) (related to
1712(b)(6)).

41108(d) ......

41108(e) ......

Source (Statutes at Large)
Pub. L. 98–237, § 13(b), Mar.
20, 1984, 98 Stat. 82; Pub.
L. 105–258, title I, § 112(b),
Oct. 14, 1998, 112 Stat. 1911.

Pub. L. 100–418, title X,
§ 10002(h)
(related
to
§ 13(b)(6)), Aug. 23, 1988, 102
Stat. 1572; Pub. L. 105–258,
title I, § 111(7), Oct. 14,
1998, 112 Stat. 1911.

46 App.:1712(b)(7).

In subsection (c)(1)(B), the words ‘‘Secretary of
Homeland Security’’ are substituted for ‘‘Secretary of
the Treasury’’ because the functions of the Secretary of
the Treasury relating to the Customs Service were
transferred to the Secretary of Homeland Security by
section 403(1) of the Homeland Security Act of 2002
(Pub. L. 107–296, 116 Stat. 2178).

§ 41109. Assessment of penalties

(d) IMPAIRING ACCESS TO FOREIGN TRADE.—If
the Commission finds, after notice and opportunity for a hearing, that the action of a common carrier, acting alone or in concert with another person, or a foreign government has unduly impaired access of a vessel documented
under the laws of the United States to ocean
trade between foreign ports, the Commission
shall take action that it finds appropriate, including imposing any of the penalties authorized
by this section. The Commission also may take
any of the actions authorized by sections 42304
and 42305 of this title.
(e) SUBMISSION OF ORDER TO PRESIDENT.—Before an order under this section becomes effective, it shall be submitted immediately to the
President. The President, within 10 days after
receiving it, may disapprove it if the President
finds that disapproval is required for reasons of
national defense or foreign policy.

(a) GENERAL AUTHORITY.—Until a matter is referred to the Attorney General, the Federal
Maritime Commission may, after notice and opportunity for a hearing, assess a civil penalty
provided for in this part. The Commission may
compromise, modify, or remit, with or without
conditions, a civil penalty.
(b) FACTORS IN DETERMINING AMOUNT.—In determining the amount of a civil penalty, the
Commission shall take into account the nature,
circumstances, extent, and gravity of the violation committed and, with respect to the violator, the degree of culpability, history of prior offenses, ability to pay, and other matters justice
may require.
(c) EXCEPTION.—A civil penalty may not be imposed for conspiracy to violate section 41102(a)
or 41104(1) or (2) of this title or to defraud the
Commission by concealing such a violation.
(d) PROHIBITED BASIS OF PENALTY.—The Commission or a court may not order a person to
pay the difference between the amount billed
and agreed upon in writing with a common carrier or its agent and the amount set forth in a
tariff or service contract by that common carrier for the transportation service provided.
(e) TIME LIMIT.—A proceeding to assess a civil
penalty under this section must be commenced
within 5 years after the date of the violation.
(f) REVIEW OF CIVIL PENALTY.—A person
against whom a civil penalty is assessed under
this section may obtain review under chapter 158
of title 28.
(g) CIVIL ACTIONS TO COLLECT.—If a person
does not pay an assessment of a civil penalty
after it has become final or after the appropriate
court has entered final judgment in favor of the
Commission, the Attorney General at the request of the Commission may seek to collect the
amount assessed in an appropriate district court
of the United States. The court shall enforce the
order of the Commission unless it finds that the
order was not regularly made and duly issued.

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1543.)

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1544.)

(2) DEFENSE BASED ON FOREIGN LAW.—If, in
defense of its failure to comply with a subpoena or discovery order, a common carrier alleges that information or documents located
in a foreign country cannot be produced because of the laws of that country, the Commission shall immediately notify the Secretary of
State of the failure to comply and of the allegation relating to foreign laws. On receiving
the notification, the Secretary of State shall
promptly consult with the government of the
nation within which the information or documents are alleged to be located for the purpose
of assisting the Commission in obtaining the
information or documents.

Page 257
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

41109(a) ......

46 App.:1712(c) (1st,
last sentences).

41109(b) ......

46 App.:1712(c) (2d
sentence).
46 App.:1712(f)(1)
(1st sentence).
46 App.:1712(f)(1)
(last sentence).
46 App.:1712(f)(2).
46 App.:1712(d).
46 App.:1712(e).

41109(c) ......
41109(d) ......
41109(e) ......
41109(f) .......
41109(g) ......

Source (Statutes at Large)
Pub. L. 98–237, § 13(c)–(f),
Mar. 20, 1984, 98 Stat. 82;
Pub. L. 105–258, title I,
§ 112(c), Oct. 14, 1998, 112
Stat. 1912.

CHAPTER 413—ENFORCEMENT
Sec.

41301.
41302.
41303.
41304.
41305.
41306.
41307.
41308.
41309.

Complaints.
Investigations.
Discovery and subpoenas.
Hearings and orders.
Award of reparations.
Injunctive relief sought by complainants.
Injunctive relief sought by the Commission.
Enforcement of subpoenas and orders.
Enforcement of reparation orders.

§ 41301. Complaints
(a) IN GENERAL.—A person may file with the
Federal Maritime Commission a sworn complaint alleging a violation of this part, except
section 41307(b)(1). If the complaint is filed within 3 years after the claim accrues, the complainant may seek reparations for an injury to the
complainant caused by the violation.
(b) NOTICE AND RESPONSE.—The Commission
shall provide a copy of the complaint to the person named in the complaint. Within a reasonable time specified by the Commission, the person shall satisfy the complaint or answer it in
writing.
(c) IF COMPLAINT NOT SATISFIED.—If the complaint is not satisfied, the Commission shall investigate the complaint in an appropriate manner and make an appropriate order.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1545.)
HISTORICAL AND REVISION NOTES
Revised
Section
41301(a) ......

41301(b) ......
41301(c) ......

§ 41303

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1710(a), (g)
(related to time
limit).

Source (Statutes at Large)
Pub. L. 98–237, § 11(a), (b), (g)
(related to time limit),
Mar. 20, 1984, 98 Stat. 80;
Pub. L. 98–595, § 3(b)(2),
Oct. 30, 1984, 98 Stat. 3132;
Pub. L. 105–258, title I,
§ 110, Oct. 14, 1998, 112
Stat. 1911.

46 App.:1710(b) (1st
sentence).
46 App.:1710(b) (last
sentence).

In subsection (a), the words ‘‘If the complaint is filed
within 3 years after the claim accrues’’ are substituted
for ‘‘For any complaint filed within 3 years after the
cause of action accrued’’ in 46 App. U.S.C. 1710(g) to
alert the reader to that time limitation.

§ 41302. Investigations
(a) IN GENERAL.—The Federal Maritime Commission, on complaint or its own motion, may
investigate any conduct or agreement that the
Commission believes may be in violation of this
part. The Commission may by order disapprove,

cancel, or modify any agreement that operates
in violation of this part.
(b) EFFECTIVENESS OF AGREEMENT DURING INVESTIGATION.—Unless an injunction is issued
under section 41306 or 41307 of this title, an
agreement under investigation by the Commission remains in effect until the Commission issues its order.
(c) DATE FOR DECISION.—Within 10 days after
the initiation of a proceeding under this section
or section 41301 of this title, the Commission
shall set a date by which it will issue its final
decision. The Commission by order may extend
the date for good cause.
(d) SANCTIONS FOR DELAY.—If, within the period for final decision under subsection (c), the
Commission determines that it is unable to
issue a final decision because of undue delay
caused by a party to the proceeding, the Commission may impose sanctions, including issuing
a decision adverse to the delaying party.
(e) REPORT.—The Commission shall make a
written report of every investigation under this
part in which a hearing was held, stating its
conclusions, decisions, findings of fact, and
order. The Commission shall provide a copy of
the report to all parties and publish the report
for public information. A published report is
competent evidence in a court of the United
States.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1545.)
HISTORICAL AND REVISION NOTES
Revised
Section
41302(a) ......
41302(b) ......
41302(c) ......
41302(d) ......
41302(e) ......

Source (U.S. Code)
46 App.:1710(c) (1st,
3d sentences).
46 App.:1710(c) (2d
sentence).
46 App.:1710(d).
46 App.:1710(e).
46 App.:1710(f).

Source (Statutes at Large)
Pub. L. 98–237, § 11(c)–(f),
Mar. 20, 1984, 98 Stat. 80.

§ 41303. Discovery and subpoenas
(a) IN GENERAL.—In an investigation or adjudicatory proceeding under this part—
(1) the Federal Maritime Commission may
subpoena witnesses and evidence; and
(2) a party may use depositions, written interrogatories, and discovery procedures under
regulations prescribed by the Commission
that, to the extent practicable, shall conform
to the Federal Rules of Civil Procedure (28
App. U.S.C.).
(b) WITNESS FEES.—Unless otherwise prohibited by law, a witness is entitled to the same
fees and mileage as in the courts of the United
States.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1545.)
HISTORICAL AND REVISION NOTES
Revised
Section
41303 ..........

Source (U.S. Code)
46 App.:1711.

Source (Statutes at Large)
Pub. L. 98–237, § 12, Mar. 20,
1984, 98 Stat. 81.

In subsection (a)(1), the words ‘‘may subpoena witnesses and evidence’’ are substituted for ‘‘may by subpena compel the attendance of witnesses and the production of books, papers, documents, and other evidence’’ to eliminate unnecessary words.
In subsection (a)(2), the words ‘‘shall conform to the
Federal Rules of Civil Procedure (28 App. U.S.C.)’’ are

§ 41304

TITLE 46—SHIPPING

substituted for ‘‘shall be in conformity with the rules
applicable in civil proceedings in the district courts of
the United States’’ for clarity.

§ 41304. Hearings and orders
(a) OPPORTUNITY FOR HEARING.—The Federal
Maritime Commission shall provide an opportunity for a hearing before issuing an order relating to a violation of this part or a regulation
prescribed under this part.
(b) MODIFICATION OF ORDER.—The Commission
may reverse, suspend, or modify any of its orders.
(c) REHEARING.—On application of a party to a
proceeding, the Commission may grant a rehearing of the same or any matter determined in the
proceeding. Except by order of the Commission,
a rehearing does not operate as a stay of an
order.
(d) PERIOD OF EFFECTIVENESS.—An order of the
Commission remains in effect for the period
specified in the order or until suspended, modified, or set aside by the Commission or a court
of competent jurisdiction.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1546.)
HISTORICAL AND REVISION NOTES
Revised
Section
41304(a) ......
41304(b) ......
41304(c) ......

41304(d) ......

Source (U.S. Code)

Source (Statutes at Large)

46 App.:1713(a) (1st
sentence).
46 App.:1713(b) (1st
sentence 1st–12th
words).
46 App.:1713(b) (1st
sentence 13th–last
words, last sentence).
46 App.:1713(a) (last
sentence).

Pub. L. 98–237, § 14(a), (b),
Mar. 20, 1984, 98 Stat. 83.

In subsection (a), the words ‘‘upon sworn complaint
or on its own motion’’ are omitted as unnecessary.

§ 41305. Award of reparations
(a) DEFINITION.—In this section, the term ‘‘actual injury’’ includes the loss of interest at commercial rates compounded from the date of injury.
(b) BASIC AMOUNT.—If the complaint was filed
within the period specified in section 41301(a) of
this title, the Federal Maritime Commission
shall direct the payment of reparations to the
complainant for actual injury caused by a violation of this part, plus reasonable attorney fees.
(c) ADDITIONAL AMOUNTS.—On a showing that
the injury was caused by an activity prohibited
by section 41102(b), 41104(3) or (6), or 41105(1) or
(3) of this title, the Commission may order the
payment of additional amounts, but the total
recovery of a complainant may not exceed twice
the amount of the actual injury.
(d) DIFFERENCE BETWEEN RATES.—If the injury
was caused by an activity prohibited by section
41104(4)(A) or (B) of this title, the amount of the
injury shall be the difference between the rate
paid by the injured shipper and the most favorable rate paid by another shipper.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1546.)

Page 258
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

41305 ..........

46 App.:1710(g) (less
time limit).

Pub. L. 98–237, § 11(g) (less
time limit), Mar. 20, 1984,
98 Stat. 80; Pub. L. 98–595,
§ 3(b)(2), Oct. 30, 1984, 98
Stat. 3132; Pub. L. 105–258,
title I, § 110, Oct. 14, 1998,
112 Stat. 1911.

In subsection (b), the words ‘‘within the period specified in section 41301(a) of this title’’ are substituted for
‘‘within 3 years after the cause of action accrued’’ because the time limit is restated in section 41301(a) instead of in this section. The words ‘‘upon petition of
the complainant’’ are omitted as unnecessary. The
words ‘‘after notice and hearing’’ are omitted as unnecessary because of section 41304(a) of the revised title.

§ 41306. Injunctive relief sought by complainants
(a) IN GENERAL.—After filing a complaint with
the Federal Maritime Commission under section
41301 of this title, the complainant may bring a
civil action in a district court of the United
States to enjoin conduct in violation of this
part.
(b) VENUE.—The action must be brought in the
judicial district in which—
(1) the Commission has brought a civil action against the defendant under section
41307(a) of this title; or
(2) the defendant resides or transacts business, if the Commission has not brought such
an action.
(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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1546.)
HISTORICAL AND REVISION NOTES
Revised
Section
41306 ..........

Source (U.S. Code)
46 App.:1710(h)(2).

Source (Statutes at Large)
Pub. L. 98–237, § 11(h)(2),
Mar. 20, 1984, 98 Stat. 81.

§ 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.—

Page 259

(1) ACTION BY COMMISSION.—If, at any time
after the filing or effective 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 unreasonable 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 subsection.
(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 agreement, or an officer, director, partner, agent, or employee of the person,
fails substantially to comply with a request for
the submission of additional information 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 appropriate.
(d) REPRESENTATION.—The Commission may
represent itself in a proceeding 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1547.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

41307(a) ......

46 App.:1710(h)(1).

41307(b)(1) ..

46 App.:1705(g), (h)
(1st sentence).

41307(b)(2) ..
41307(b)(3) ..
41307(c) ......
41307(d) ......

§ 41309

TITLE 46—SHIPPING

Source (Statutes at Large)
Pub. L. 98–237, § 11(c) (last
sentence), (h)(1), Mar. 20,
1984, 98 Stat. 80, 81.
Pub. L. 98–237, § 6(g)–(i), (k),
Mar. 20, 1984, 98 Stat. 72,
73.

46 App.:1710(c) (last
sentence).
46 App.:1705(h) (2d
sentence).
46 App.:1705(h) (3d,
last sentences).
46 App.:1705(i).
46 App.:1705(k).

§ 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 hearing, 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1548.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

41308(a) ......

46 App.:1713(c).

41308(b) ......

46 App.:1713(e).

Source (Statutes at Large)
Pub. L. 98–237, § 14(c), (e),
Mar. 20, 1984, 98 Stat. 83,
84.

In subsection (a), the words ‘‘subpoena or’’ are added
in the second sentence for consistency in the subsection. The words ‘‘by an appropriate injunction or
other process, mandatory or otherwise’’ are omitted as
unnecessary. The words ‘‘regularly made and duly issued’’ are substituted for ‘‘properly made and duly issued’’ for consistency in the subtitle.

§ 41309. Enforcement of reparation orders
(a) CIVIL ACTION.—If a person does not comply
with an order of the Federal 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 defendants, 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 entered 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 reasonable 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1548.)

§ 42101

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

41309(a) ......

46 App.:1713(d)(1).

41309(b) ......
41309(c) ......

46 App.:1713(d)(3).
46 App.:1713(d)(2)
(1st sentence
1st–23d words).
46 App.:1713(d)(2)
(1st sentence
24th–last words,
last sentence).
46 App.:1713(e).

41309(d) ......

41309(e) ......

Source (Statutes at Large)

Sec.

42107.
42108.
42109.

Regulations of the Commission.
Regulations of other agencies.
No preference to Government-owned vessels.
Information, witnesses, and evidence.
Disclosure to public.
Other actions to remedy unfavorable conditions.
Refusal of clearance and entry.
Penalty for operating under suspended tariff
or service contract.
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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1548.)
HISTORICAL AND REVISION NOTES
Revised
Section
42101(a) ......

Source (U.S. Code)
46 App.:876(a)(2).

Revised
Section

42101(b) ......

CHAPTER 421—REGULATIONS AFFECTING
SHIPPING IN FOREIGN TRADE
42101.
42102.
42103.
42104.
42105.
42106.

HISTORICAL AND REVISION NOTES—CONTINUED

Pub. L. 98–237, § 14(d), (e),
Mar. 20, 1984, 98 Stat. 83,
84.

PART B—ACTIONS TO ADDRESS FOREIGN
PRACTICES

Source (Statutes at Large)
June 5, 1920, ch. 250,
§ 19(a)(2), (e), 41 Stat. 995;
Ex. Ord. No. 6166, § 12, eff.
June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(46), Aug. 6, 1981, 95
Stat. 157; Pub. L. 101–595,
title I, § 103, Nov. 16, 1990,
104 Stat. 2979; Pub. L.
102–587, title VI, § 6205(b),
Nov. 4, 1992, 106 Stat. 5094;
Pub. L. 105–258, title III,
§ 301, Oct. 14, 1998, 112
Stat. 1915.

Page 260

Source (U.S. Code)

Source (Statutes at Large)

46 App.:1710a(h) (related to 876(a)(2)).

Pub. L. 100–418, title X,
§ 10002(h)
(related
to
§ 19(b)(1)(b)), Aug. 23, 1988,
102 Stat. 1572; Pub. L.
105–258, title I, § 111(7),
Oct. 14, 1998, 112 Stat. 1911.

46 App.:876(e).

In subsection (a), the word ‘‘shall’’ is substituted for
‘‘is authorized and directed’’, and the words ‘‘prescribe
regulations’’ are substituted for ‘‘make rules and regulations’’, for consistency in the revised title and to
eliminate unnecessary words. The text of 46 App. U.S.C.
1710a(h), insofar as it relates to 46 App. U.S.C. 876(a)(2),
is omitted as unnecessary because this chapter already
provides for the same remedies as those authorized by
the omitted provision.
In subsection (b), the words ‘‘on the petition of any
person, including another component of the United
States Government’’ are substituted for ‘‘pursuant to a
petition. Any person, including a common carrier,
tramp operator, bulk operator, shipper, shippers’ association, ocean transportation intermediary, marine
terminal operator, or any component of the Government of the United States, may file a petition for relief
under subsection (a)(2) of this section.’’ for consistency
with section 42302(b) of the revised title and to eliminate unnecessary words.

§ 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
relating to the Public Health Service, the Consular Service, or the inspection of vessels.
(b) PRIOR REVIEW AND APPROVAL.—A department, agency, or instrumentality 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1549.)
HISTORICAL AND REVISION NOTES
Revised
Section
42102(a) ......

Source (U.S. Code)
46 App.:876(a)(3).

Source (Statutes at Large)
June 5, 1920, ch. 250,
§ 19(a)(3), (b), (c), 41 Stat.
995; Ex. Ord. No. 6166, § 12,
eff. June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(46), Aug. 6, 1981, 95
Stat. 157; Pub. L. 105–258,
title III, § 301, Oct. 14, 1998,
112 Stat. 1915.

Page 261

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section
42102(b) ......
42102(c) ......

§ 42105

TITLE 46—SHIPPING

Source (U.S. Code)

Source (Statutes at Large)

46 App.:876(b).
46 App.:876(c).

In this section, the words ‘‘department, agency, or instrumentality’’ are substituted for ‘‘department, board,
bureau, or agency’’ for consistency in the revised title.
The words ‘‘the inspection of vessels’’ are substituted
for ‘‘the steamboat inspection service’’ because the
Steamboat Inspection Service has been abolished and
its functions are now carried out by the Coast Guard.
In subsection (a), the word ‘‘shall’’ is substituted for
‘‘is authorized and directed’’ for consistency in the revised title and to eliminate unnecessary words.

§ 42103. No preference to Government-owned vessels
A regulation may not give a vessel owned by
the United States Government a preference over
a vessel owned by citizens of the United States
and documented under the laws of the United
States.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1549.)

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 subpoena of the Commission
under this section, the Commission may seek
enforcement 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1549.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

42104(a) ......

46 App.:876(f)(1)–(3).

June 5, 1920, ch. 250, § 19(f),
(g); as added Pub. L.
101–595, title I, § 103(2),
Nov. 16, 1990, 104 Stat.
2979; Pub. L. 102–587, title
VI, § 6205(b)(2), Nov. 4,
1992, 106 Stat. 5094; Pub. L.
105–258, title III, § 301, Oct.
14, 1998, 112 Stat. 1915.

42104(b) ......
42104(c) ......
42104(d) ......

46 App.:876(g)(1), (2).
46 App.:876(g)(3).
46 App.:876(f)(4),
(g)(4).
46 App.:876(g)(5).

HISTORICAL AND REVISION NOTES
Revised
Section
42103 ..........

Source (U.S. Code)
46 App.:876(d).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 19(d),
41 Stat. 995; Ex. Ord. No.
6166, § 12, eff. June 10, 1933;
June 29, 1936, ch. 858, title
II, § 204, title IX, § 904, 49
Stat. 1987, 2016; Pub. L.
105–258, title III, § 301, Oct.
14, 1998, 112 Stat. 1915.

§ 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’ association, 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 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 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 Federal 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 produced 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

42104(e) ......

In subsections (a) and (b), the words ‘‘In carrying
out’’ are substituted for ‘‘In furtherance of the purposes of’’ and ‘‘In proceedings under’’ for clarity and
consistency.
In subsection (b)(1), the words ‘‘subpoena witnesses
and evidence’’ are substituted for ‘‘by subpoena compel
the attendance of witnesses and the production of
books, papers, documents, and other evidence’’ for consistency in the revised title and to eliminate unnecessary words.
In subsection (b)(2), the words ‘‘conform to the Federal Rules of Civil Procedure (28 App. U.S.C.)’’ are substituted for ‘‘are in conformity with the rules applicable in civil proceedings in the district courts of the
United States’’ for clarity.
In subsection (d)(2), the penalties from 46 App. U.S.C.
876(f)(4) and (g)(4)(B) are combined because they are redundant.
In subsection (e), the words ‘‘by an appropriate injunction or other process, mandatory or otherwise’’ are
omitted as unnecessary.

§ 42105. Disclosure to public
Notwithstanding any other provision of law,
the Federal Maritime Commission may refuse to
disclose to the public a response or other information submitted to it under this chapter.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1550.)
HISTORICAL AND REVISION NOTES
Revised
Section
42105 ..........

Source (U.S. Code)
46 App.:876(h).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 19(h);
as added Pub. L. 101–595,
title I, § 103(2), Nov. 16,
1990, 104 Stat. 2979; Pub. L.
105–258, title III, § 301, Oct.
14, 1998, 112 Stat. 1915.

§ 42106

TITLE 46—SHIPPING

§ 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 carriage 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, preferential 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 appropriate to adjust or
meet any condition unfavorable to shipping in
the foreign trade of the United States.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1550.)
HISTORICAL AND REVISION NOTES
Revised
Section
42106 ..........

Page 262
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

42107 ..........

46 App.:876(j).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 19(j);
as added Pub. L. 101–595,
title I, § 103(2), Nov. 16,
1990, 104 Stat. 2979; Pub. L.
105–258, title III, § 301, Oct.
14, 1998, 112 Stat. 1915.

In paragraph (1), the words ‘‘Secretary of Homeland
Security’’ are substituted for ‘‘collector of customs at
the port or place of destination in the United States’’
because the functions of the Customs Service and of the
Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub.
L. 107–296, 116 Stat. 2178). The functions of the collector
of customs previously were vested in the Secretary of
the Treasury by Reorganization Plan No. 26 of 1950, and
the office of collector of customs previously was abolished by Reorganization Plan No. 1 of 1965.

§ 42108. Penalty for operating under suspended
tariff or service contract
A common carrier that accepts or handles
cargo for carriage under a tariff 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 Government 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1551.)

Source (U.S. Code)

Source (Statutes at Large)

HISTORICAL AND REVISION NOTES
46 App.:876(i).

June 5, 1920, ch. 250, § 19(i);
as added Pub. L. 101–595,
title I, § 103(2), Nov. 16,
1990, 104 Stat. 2979; Pub. L.
105–258, title III, § 301, Oct.
14, 1998, 112 Stat. 1915.

Revised
Section

Source (U.S. Code)

42108 ..........

46 App.:876(k).

§ 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 operating shall—
(A) deny entry, for purposes of oceanborne
trade, of a vessel of a country that is named
in a regulation prescribed by the Commission 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1551.)

Source (Statutes at Large)
June 5, 1920, ch. 250, § 19(k);
as added Pub. L. 101–595,
title I, § 103(2), Nov. 16,
1990, 104 Stat. 2979; Pub. L.
105–258, title III, § 301, Oct.
14, 1998, 112 Stat. 1915.

§ 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1551.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

42109 ..........

46 App.:876(l).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 19(l);
as added Pub. L. 101–595,
title I, § 103(2), Nov. 16,
1990, 104 Stat. 2979; Pub. L.
105–258, title III, § 301, Oct.
14, 1998, 112 Stat. 1915.

CHAPTER 423—FOREIGN SHIPPING
PRACTICES
Sec.

42301.
42302.
42303.
42304.
42305.
42306.
42307.

Definitions.
Investigations.
Information requests.
Action against foreign carriers.
Refusal of clearance and entry.
Submission of determinations to President.
Review of regulations and orders.

Page 263
§ 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 services’’ means intermodal operations, terminal operations, cargo
solicitation, agency services, ocean transportation intermediary services and operations,
and all other activities and services integral
to total transportation systems of ocean common carriers and their foreign domiciled affiliates 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 common carrier.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1551.)
HISTORICAL AND REVISION NOTES
Revised
Section
42301 ..........

§ 42303

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1710a(a).

Source (Statutes at Large)
Pub. L. 100–418, title X,
§ 10002(a), Aug. 23, 1988, 102
Stat. 1570; Pub. L. 105–258,
title I, § 111(1)–(3), Oct. 14,
1998, 112 Stat. 1911.

§ 42302. Investigations
(a) IN GENERAL.—The Federal Maritime Commission shall investigate whether any laws,
rules, regulations, policies, or practices of a foreign government, or any practices of a foreign
carrier or other person providing maritime 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 investigation under this section
and render a decision within 120 days after it is

initiated. However, the Commission may extend
this 120-day period for an additional 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1552.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

42302(a) ......

46 App.:1710a(b).

42302(b) ......
42302(c) ......

46 App.:1710a(c)(1).
46 App.:1710a(c)(2).

Source (Statutes at Large)
Pub. L. 100–418, title X,
§ 10002(b), (c), Aug. 23, 1988,
102 Stat. 1570; Pub. L.
105–258, title I, § 111(4),
Oct. 14, 1998, 112 Stat. 1911.

In subsection (b), the words ‘‘including another component of the United States Government’’ are substituted for ‘‘including any common carrier, shipper,
shippers’ association, ocean transportation intermediary, or marine terminal operator, or any branch,
department, agency, or other component of the Government of the United States’’ for consistency with section 42101(b) of the revised title and to eliminate unnecessary words.

§ 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 common carrier, shipper, shippers’ association, ocean transportation intermediary, 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 public.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1552.)
HISTORICAL AND REVISION NOTES
Revised
Section
42303 ..........

Source (U.S. Code)
46 App.:1710a(d)

Source (Statutes at Large)
Pub. L. 100–418, title X,
§ 10002(d), Aug. 23, 1988, 102
Stat. 1571; Pub. L. 105–258,
title I, § 111(4), Oct. 14,
1998, 112 Stat. 1911.

In subsection (b), the words ‘‘subpoena witnesses and
evidence’’ are substituted for ‘‘issue subpoenas to compel the attendance and testimony of witnesses and the
production of records or other evidence’’ for consistency in the revised title and to eliminate unnecessary
words.
In subsection (c), the words ‘‘in its discretion’’ are
omitted as unnecessary.

§ 42304

TITLE 46—SHIPPING

§ 42304. Action against foreign carriers
(a) IN GENERAL.—Subject to section 42306 of
this title, whenever the Federal 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 conditions. 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, including any agreement authorizing preferential treatment at terminals, preferential
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 cooperation of, or make recommendations to other appropriate agencies of
the United States Government prior to taking
any action under subsection (a).
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1553.)
HISTORICAL AND REVISION NOTES
Revised
Section
42304(a) ......

42304(b) ......

Source (U.S. Code)

Source (Statutes at Large)

Page 264

depart for another port or place in the
United States.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1553.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

42305 ..........

46 App.:1710a(f).

Source (Statutes at Large)
Pub. L. 100–418, title X,
§ 10002(f), Aug. 23, 1988, 102
Stat. 1572.

Before paragraph (1), the words ‘‘Subject to section
42306 of this title’’ are added to alert the reader to the
application of that section. The word ‘‘determines’’ is
substituted for ‘‘finds’’ for consistency with section
42306 of the revised title.
In paragraph (1), the words ‘‘Secretary of Homeland
Security’’ are substituted for ‘‘collector of customs at
any port or place of destination in the United States’’
because the functions of the Customs Service and of the
Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub.
L. 107–296, 116 Stat. 2178). The functions of the collector
of customs previously were vested in the Secretary of
the Treasury by Reorganization Plan No. 26 of 1950, and
the office of collector of customs previously was abolished by Reorganization Plan No. 1 of 1965.

§ 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1553.)
HISTORICAL AND REVISION NOTES

46 App.:1710a(e)(1).

Pub. L. 100–418, title X,
§ 10002(e)(1), (2), Aug. 23,
1988, 102 Stat. 1571; Pub. L.
105–258, title I, § 111(5), (6),
Oct. 14, 1998, 112 Stat. 1911.

46 App.:1710a(e)(2).

In subsection (a), the words ‘‘Subject to section 42306
of this title’’ are added to alert the reader to the application of that section.

§ 42305. Refusal of clearance and entry
Subject to section 42306 of this title, whenever
the Federal Maritime Commission 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 required 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 operating 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

Revised
Section

Source (U.S. Code)

42306 ..........

46 App.:1710a(e)(3).

Source (Statutes at Large)
Pub. L. 100–418, title X,
§ 10002(e)(3), Aug. 23, 1988,
102 Stat. 1572.

§ 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1554.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

42307 ..........

46 App.:1710a(i).

Source (Statutes at Large)
Pub. L. 100–418, title X,
§ 10002(i), Aug. 23, 1988, 102
Stat. 1572.

PART C—MISCELLANEOUS
CHAPTER 441—EVIDENCE OF FINANCIAL RESPONSIBILITY FOR PASSENGER TRANSPORTATION
Sec.

44101.

Application.

Page 265
Sec.

44102.

44103.
44104.
44105.
44106.

Financial responsibility to indemnify passengers for nonperformance of transportation.
Financial responsibility to pay liability for
death or injury.
Civil penalty.
Refusal of clearance.
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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1554.)
HISTORICAL AND REVISION NOTES
Revised
Section
44101 ..........

Source (U.S. Code)
46 App.:817d(a)
(6th–28th words).

Source (Statutes at Large)
Pub.
L.
89–777,
§§ 2(a)
(6th–28th
words),
3(a)
(15th–36th words), Nov. 6,
1966, 80 Stat. 1356, 1357.

46 App.:817e(a)
(15th–36th words).

§ 44102. Financial responsibility to indemnify
passengers for nonperformance of transportation
(a) FILING REQUIREMENT.—A person in the
United States may not arrange, offer, advertise,
or provide transportation on a vessel to which
this chapter applies unless the person has filed
with the Federal Maritime Commission evidence
of financial responsibility to indemnify passengers for nonperformance 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 Commission 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1554.)
HISTORICAL AND REVISION NOTES
Revised
Section
44102 ..........

§ 44104

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:817e(a)
(1st–14th,
37th–last words),
(b).

Source (Statutes at Large)
Pub.
L.
89–777,
§ 3(a)
(1st–14th, 37th–last words),
(b), Nov. 6, 1966, 80 Stat.
1357; Pub. L. 103–206, title
III, § 320, Dec. 20, 1993, 107
Stat. 2427.

In subsection (c), the words ‘‘or any State thereof, or
the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands or any territory or possession
of the United States’’ are omitted as unnecessary because of the definition of ‘‘United States’’ in chapter 1
of the revised title.

§ 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 pre-

scribed by the Federal 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 accommodations as follows:
(A) $20,000 for each of the first 500 passenger accommodations.
(B) $15,000 for each additional passenger
accommodation between 501 and 1,000.
(C) $10,000 for each additional passenger
accommodation between 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 responsibility 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 individual on a voyage to or from a port in the United States.
(d) MEANS OF ESTABLISHING.—Financial responsibility under this section 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 business in the United States.
(3) Qualification as a self-insurer.
(4) Other evidence of financial responsibility.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1554.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

44103 ..........

46 App.:817d(a)
(1st–5th, 29th–last
words), (b).

Pub. L. 89–777, § 2(a) (1st–5th,
29th–last words), (b), Nov.
6, 1966, 80 Stat. 1356.

In subsection (d)(2), the words ‘‘issued by a bonding
company authorized to do business in the United
States’’ are substituted for 46 App. U.S.C. 817d(b) to
eliminate unnecessary words. The words ‘‘or any State
thereof or the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, or any territory or
possession of the United States’’ are omitted as unnecessary because of the definition of ‘‘United States’’ in
chapter 1 of the revised title.

§ 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 Commission. The Commission may remit or mitigate the penalty on
terms the Commission considers proper.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1555.)

§ 44105

TITLE 46—SHIPPING

Page 266

Chapter

HISTORICAL AND REVISION NOTES

Sec.

PART C—FINANCIAL ASSISTANCE PROGRAMS
Revised
Section

Source (U.S. Code)

44104 ..........

46 App.:817d(c).

Source (Statutes at Large)
Pub. L. 89–777, §§ 2(c), 3(c),
Nov. 6, 1966, 80 Stat. 1357.

46 App.:817e(c).

§ 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.
(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1555.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

44105 ..........

46 App.:817d(e).

Source (Statutes at Large)
Pub. L. 89–777, §§ 2(e), 3(e),
Nov. 6, 1966, 80 Stat. 1357,
1358; Pub. L. 103–182, title
VI, § 689(c), Dec. 8, 1993, 107
Stat. 2222.

531.
533.
535.
537.
539.
541.

Maritime Security Fleet ....................
Construction Reserve Funds ............
Capital Construction Funds .............
Loans and Guarantees .......................
War Risk Insurance ............................
Miscellaneous .......................................

551.
553.
555.
556.

Coastwise Trade ..................................
Passenger and Cargo Preferences ..
Miscellaneous .......................................
Short Sea Transportation .................

PART D—PROMOTIONAL PROGRAMS

§ 44106. Conduct of proceedings
Part A of this subtitle applies to proceedings
conducted by the Federal Maritime Commission
under this chapter.

Restrictions on Transfers ................. 56101
Emergency Acquisition of Vessels .. 56301
Essential Vessels Affected by Neutrality Act .......................................... 56501

PART F—GOVERNMENT-OWNED MERCHANT VESSELS

571.
573.
575.

General Authority ............................... 57101
Vessel Trade-In Program .................. 57301
Construction, Charter, and Sale of
Vessels ................................................ 57501

581.

Restrictions and Penalties ................ 58101

PART G—RESTRICTIONS AND PENALTIES

AMENDMENTS
2008—Pub.
L.
110–181,
div.
C,
title
XXXV,
§ 3523(a)(6)(E), Jan. 28, 2008, 122 Stat. 600, added item for
chapter 541.
2007—Pub. L. 110–140, title XI, § 1121(b), Dec. 19, 2007,
121 Stat. 1762, added item for chapter 556.
2006—Pub. L. 109–304, § 8(a), Oct. 6, 2006, 120 Stat. 1555,
amended subtitle analysis generally. Prior to amendment, analysis consisted of item for chapter 531 ‘‘Maritime Security Fleet’’.

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1555.)

PART A—GENERAL

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

44106 ..........

46 App.:817d(d).

3(d),
1357,
title
1996,

46 App.:817e(d).

The authority to prescribe regulations is omitted as
unnecessary because it is already provided by section
305 of the revised title.

Subtitle V—Merchant Marine
Chapter

Sec.

Policy, Studies, and Reports ............ 50101
Administrative ..................................... 50301
Other General Provisions ................. 50501

515.
517.
519.
521.

General ..................................................
United States Merchant Marine
Academy .............................................
State Maritime Academy Support
Program .............................................
Other Support for Merchant Marine Training ....................................
Merchant Marine Awards .................
Miscellaneous .......................................

50101.
50102.
50103.
50104.
50105.
50106.
50107.
50108.

50111.
50112.
50113.

Objectives and policy.
Survey of merchant marine.
Determinations of essential services.
Studies of general maritime problems.
Studies and cooperation relating to the construction of vessels.
Studies on the operation of vessels.
Studies on marine insurance.
Studies on cargo carriage and cargo containers.
Miscellaneous studies.
Securing preference to vessels of the United
States.
Reports to Congress.
National Maritime Enhancement Institutes.
Use and performance reports by operators of
vessels.

§ 50101. Objectives and policy

PART B—MERCHANT MARINE SERVICE

511.
513.

Sec.

50109.
50110.

PART A—GENERAL

501.
503.
505.

CHAPTER 501—POLICY, STUDIES, AND
REPORTS

Source (Statutes at Large)
Pub. L. 89–777, §§ 2(d),
Nov. 6, 1966, 80 Stat.
1358; Pub. L. 104–324,
VII, § 746(c), Oct. 19,
110 Stat. 3943.

55101
55301
55501
55601

PART E—CONTROL OF MERCHANT MARINE CAPABILITIES

561.
563.
565.

46 App.:817e(e).

The words ‘‘Secretary of Homeland Security’’ are
substituted for ‘‘Customs Service’’ because the functions of the Customs Service and of the Secretary of
the Treasury relating thereto were transferred to the
Secretary of Homeland Security by section 403(1) of the
Homeland Security Act of 2002 (Pub. L. 107–296, 116
Stat. 2178).

53101
53301
53501
53701
53901
54101

51101
51301
51501
51701
51901
52101

(a) OBJECTIVES.—It is necessary for the national defense and the development 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 substantial part of the waterborne export and import foreign commerce
of the United States and to provide shipping

Page 267

service essential for maintaining 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 constructed
in the United States 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 objectives described in subsection (a).
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1556;
Pub. L. 111–84, div. C, title XXXV, § 3511, Oct. 28,
2009, 123 Stat. 2722.)
HISTORICAL AND REVISION NOTES
Revised
Section
50101 ..........

§ 50103

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:861.

46 App.:891.
46 App.:1101.

Source (Statutes at Large)
June 5, 1920, ch. 250, § 1, 41
Stat. 988; Exec. Order No.
6166, June 10, 1933, § 12;
June 29, 1936, ch. 858, title
II, § 204, title IX, § 904, 49
Stat. 1987, 2016; Pub. L.
97–31, § 12(33), Aug. 6, 1981,
95 Stat. 156.
May 22, 1928, ch. 675, § 1, 45
Stat. 689.
June 29, 1936, ch. 858, title I,
§ 101, 49 Stat. 1985; Pub. L.
91–469, § 1, Oct. 21, 1970, 84
Stat. 1018.

This section consolidates the source provisions to
eliminate repetition.
AMENDMENTS
2009—Subsec. (a)(4). Pub. L. 111–84 inserted ‘‘constructed in the United States’’ after ‘‘vessels’’.

§ 50102. Survey of merchant marine
(a) IN GENERAL.—The Secretary of Transportation shall survey the merchant marine of the
United States to determine whether replacements and additions 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 program 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 emergency;
(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 subsection (a)(1), the Secretary

of Transportation shall cooperate closely with
the Secretary of the Navy as to national defense
requirements.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1557.)
HISTORICAL AND REVISION NOTES
Revised
Section
50102 ..........

Source (U.S. Code)
46 App.:1120.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 210, 49 Stat. 1989; Pub.
L. 91–469, §§ 3, 35(a), Oct.
21, 1970, 84 Stat. 1018, 1035;
Pub.L. 97–31, § 12(67) (related to § 210), Aug. 6, 1981,
95 Stat. 159.

§ 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 possessions of the United
States, to foreign markets, which the Secretary determines 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 national 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 seasonal 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, expansion, 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 furnishing adequate, regular, certain, and
permanent service; and

§ 50104

TITLE 46—SHIPPING

(2) the bulk cargo carrying services described in subsection (b).
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1557.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

50103(a)(1) ..

46 App.:1121(a).

50103(a)(2) ..

46 App.:1213(a) (3d
sentence related
to 1121(a)).

50103(b) ......
50103(c) ......

46 App.:1121(b).
46 App.:1121(c).

Page 268
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

50105(a)(1) ..

46 App.:811 (1st sentence words before 1st comma).

Sept. 7, 1916, ch. 451, § 12 (1st
sentence words before 1st
comma, 2d sentence words
before 2d comma), 39 Stat.
732; Ex. Ord. No. 6166, § 12,
eff. June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(27), Aug. 6, 1981, 95
Stat. 155.
June 29, 1936, ch. 858, title
II, § 211(d), (j) (words before 1st semicolon), 49
Stat. 1989; Pub. L. 91–469,
§§ 4(2), 35(a), Oct. 21, 1970,
84 Stat. 1018, 1035; Pub. L.
97–31, § 12(67), Aug. 6, 1981,
95 Stat. 159.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 211(a)–(c), 49 Stat.
1989; Pub. L. 91–469, §§ 4,
35(a), (b), Oct. 21, 1970, 84
Stat. 1018, 1035; Pub. L.
97–31, § 12(67), Aug. 6, 1981,
95 Stat. 159.
June 29, 1936, ch. 858, title
VIII, § 809(a) (3d sentence
related to 211(a)), as added
Pub. L. 97–35, title XVI,
§ 1604, Aug. 13, 1981, 95
Stat. 751.

46 App.:1121(d).

50105(a)(2) ..

50105(c) ......

46 App.:1121(j)
(words before 1st
semicolon).
46 App.:811 (2d sentence words before 2d comma).
46 App.:1122(c).

50105(d) ......

46 App.:1122(b)(2).

50105(b) ......

§ 50104. Studies of general maritime problems
The Secretary of Transportation shall study
all maritime problems arising in carrying out
the policy in section 50101 of this title.

June 29, 1936, ch. 858, title
II, § 212(b)(2), (c), 49 Stat.
1990; Pub. L. 97–31, § 12(69),
Aug. 6, 1981, 95 Stat. 159.

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1558.)
HISTORICAL AND REVISION NOTES
Revised
Section
50104 ..........

Source (U.S. Code)
46 App.:1122(a).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 212(a), 49 Stat. 1990;
Aug. 6, 1981, Pub. L. 97–31,
§ 12(69), 95 Stat. 159.

§ 50105. Studies and cooperation relating to the
construction of vessels
(a) RELATIVE COSTS AND NEW DESIGNS.—The
Secretary of Transportation 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 examine 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 economical construction of vessels and
their propelling machinery, of most modern 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.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1558.)

§ 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 current 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 Congress 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.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1559.)
HISTORICAL AND REVISION NOTES
Revised
Section
50106(a) ......

Source (U.S. Code)

Source (Statutes at Large)

46 App.:811 (1st sentence words after
1st comma).

Sept. 7, 1916, ch. 451, § 12 (1st
sentence words after 1st
comma, 3d sentence), 39
Stat. 732; Ex. Ord. No.
6166, § 12, eff. June 10, 1933;
June 29, 1936, ch. 858, title
II, § 204, title IX, § 904, 49
Stat. 1987, 2016; Pub. L.
97–31, § 12(27), Aug. 6, 1981,
95 Stat. 155.
June 29, 1936, ch. 858, title
II, § 211(e), (g), 49 Stat.
1989; Pub. L. 91–469, §§ 4(2),
5, 35(a), Oct. 21, 1970, 84
Stat. 1018, 1035; Pub. L.
97–31, § 12(67), Aug. 6, 1981,
95 Stat. 159.

46 App.:1121(e).

50106(b) ......
50106(c) ......

46 App.:1121(g).
46 App.:811 (3d sentence).

In subsection (b), the words ‘‘existing on June 29,
1936, or thereafter built’’ are omitted as obsolete.

Page 269

§ 50109

TITLE 46—SHIPPING

§ 50107. Studies on marine insurance
The Secretary of Transportation shall—
(1) examine into the subject of marine insurance, the number of companies 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 marine insurance system as
an aid in the development of the merchant
marine of the United States.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1559.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

50107 ..........

46 App.:811 (2d sentence words after
2d comma).

Sept. 7, 1916, ch. 451, § 12 (2d
sentence words after 2d
comma), 39 Stat. 732; Ex.
Ord. No. 6166, § 12, eff.
June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(27), Aug. 6, 1981, 95
Stat. 155.

§ 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 containers 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 section 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.

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 legislation in this regard.
(c) AID FOR COTTON, COAL, LUMBER, AND CEMENT.—The Secretary shall investigate, determine, and keep current records of the advisability of enactment of suitable legislation authorizing the Secretary, in an economic or commercial 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 Secretary 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
merchant 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 shipping.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1559.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

50109(a) ......

46 App.:1121(f).

50109(b) ......
50109(c) ......
50109(d) ......

46 App.:1121(h).
46 App.:1121(i).
46 App.:1121(j)
(words after 2d
semicolon).
46 App.:1123.

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1559.)
HISTORICAL AND REVISION NOTES
Revised
Section
50108 ..........

Source (U.S. Code)
46 App.:1122(f).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 212(f); as added Pub.
L. 90–268, § 1, Mar. 16, 1968,
82 Stat. 49; Pub. L. 97–31,
§ 12(69), Aug. 6, 1981, 95
Stat. 159; Pub. L. 98–237,
§ 20(c), Mar. 20, 1984, 98
Stat. 90.

50109(e) ......

§ 50109. Miscellaneous studies
(a) FOREIGN SUBSIDIES.—The Secretary of
Transportation shall investigate, determine, and
keep current records of the extent and character
of the governmental aid and subsidies granted
by foreign governments to their merchant marine.
(b) LAWS APPLICABLE TO AIRCRAFT.—The Secretary shall investigate, determine, and keep

50109(f) .......

46 App.:811 (4th sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 211(f), (h), (i), (j)
(words after 2d semicolon), 49 Stat. 1989; Pub.
L. 91–469, §§ 4(2), 35(a), Oct.
21, 1970, 84 Stat. 1018, 1035;
Pub. L. 97–31, § 12(67), Aug.
6, 1981, 95 Stat. 159.

June 29, 1936, ch. 858, title
II, § 213, 49 Stat. 1991; Pub.
L. 87–877, § 2(c), (d), Oct.
24, 1962, 76 Stat. 1201; Pub.
L. 94–273, § 27, Apr. 21, 1976,
90 Stat. 380; Pub. L. 97–31,
§ 12(71), Aug. 6, 1981, 95
Stat. 159; Pub. L. 105–85,
div. C, title XXXVI, § 3602,
Nov. 18, 1997, 111 Stat.
2075.
Sept. 7, 1916, ch. 451, § 12 (4th
sentence), 39 Stat. 732; Ex.
Ord. No. 6166, § 12, eff.
June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(27), Aug. 6, 1981, 95
Stat. 155.

§ 50110

TITLE 46—SHIPPING

§ 50110. Securing preference to vessels of the
United States
(a) POSSIBILITIES OF PROMOTING CARRIAGE.—
The Secretary of Transportation shall investigate, determine, and keep current records of
the possibilities 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 importers 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 movement 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.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1560.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

50110(a) ......

46 App.:1121(j)
(words between
1st and 2d semicolons).

50110(b) ......

46 App.:1122(b)(1).

50110(c) ......

46 App.:1122(d).

Page 270
HISTORICAL AND REVISION NOTES

Revised
Section
50111(a) ......

Source (U.S. Code)
46 App.:811 (last
sentence).

46 App.:1118 (related
to Secretary).

46 App.:1160(f).

46 App.:1291.

50111(b) ......

46 App.:1118 note.

50111(c) ......

46 App.:1122(g).

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 12
(last sentence), 39 Stat.
732; Ex. Ord. No. 6166, § 12,
eff. June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(27), Aug. 6, 1981, 95
Stat. 155.
June 29, 1936, ch. 858, title
II, § 208 (related to Secretary), 49 Stat. 1988; Pub.
L. 94–273, § 36, Apr. 21, 1976,
90 Stat. 380; Pub. L. 97–31,
§ 12(65), Aug. 6, 1981, 95
Stat. 159.
June 29, 1936, ch. 858, title
V, § 510(f), as added Aug. 4,
1939, ch. 417, § 7, 53 Stat.
1184;
Pub.
L.
97–31,
§ 12(91)(A)–(C), Aug. 6, 1981,
95 Stat. 161.
June 29, 1936, ch. 858, title
XII, § 1211, as added Sept.
7, 1950, ch. 906, 64 Stat. 776;
Pub. L. 89–348, § 1(7), Nov.
8, 1965, 79 Stat. 1310.
Pub. L. 106–398, § 1 [div. C,
title XXXV, § 3506], Oct.
30, 2000, 114 Stat. 1654,
1654A–494.
June 29, 1936, ch. 858, title
II, § 212(g), 49 Stat. 1990;
Pub. L. 90–268, § 1, Mar. 16,
1968, 82 Stat. 49; Pub. L.
97–31, § 12(69), Aug. 6, 1981,
95 Stat. 159; Pub. L. 98–237,
§ 20(c), Mar. 20, 1984, 98
Stat. 90.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 211(j) (words between
1st and 2d semicolons), 49
Stat. 1989; Pub. L. 91–469,
§§ 4(2), 35(a), Oct. 21, 1970,
84 Stat. 1018, 1035; Pub. L.
97–31, § 12(67), Aug. 6, 1981,
95 Stat. 159.
June 29, 1936, ch. 858, title
II, § 212(b)(1), (d), 49 Stat.
1990; Pub. L. 97–31, § 12(69),
Aug. 6, 1981, 95 Stat. 159;
Pub. L. 98–237, § 20(c), Mar.
20, 1984, 98 Stat. 90.

§ 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 recommendations for legislation.
(b) ADMINISTERED AND OVERSIGHT FUNDS.—The
Secretary, in the report under subsection (a) and
in the annual budget estimate for the Maritime
Administration 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 Administration) 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 section 50101 of this title.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1560.)

In subsection (a), the words ‘‘on or before the 1st day
of December in each year’’ in 46 App. U.S.C. 811 (last
sentence) are omitted for consistency with the April 1
date in 46 App.:1118. The words ‘‘and of the operations
of any corporation in which the United States is a
stockholder, and the names and compensation of all
persons employed by the Secretary of Transportation’’
in 46 App. U.S.C. 811 (last sentence) are omitted because
the provision originally applied to the United States
Shipping Board (which was abolished in 1933) and presumably is not intended to apply to the Secretary.

§ 50112. National Maritime Enhancement Institutes
(a) DESIGNATION.—The Secretary of Transportation may designate National 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 policies and international
negotiations or agreements pending before
international 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

Page 271

Enhancement Institute shall submit an application under regulations prescribed by the Secretary.
(d) CRITERIA FOR DESIGNATION.—The Secretary
shall designate an institute 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 national and regional
contributions to the solution of both longrange and immediate problems of the domestic
maritime industry.
(3) The existence of an established program
of the applicant encompassing research and
training directed to enhancing maritime industries.
(4) The demonstrated ability of the applicant
to assemble and evaluate 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 Technology Administration, shall advise the Maritime Administration on the availability of funds for the grants
and consult with the Administration on making
the grants.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1561.)
HISTORICAL AND REVISION NOTES
Revised
Section
50112 ..........

§ 50301

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1121–2.

Source (Statutes at Large)
Pub. L. 101–115, § 8, Oct. 13,
1989, 103 Stat. 694; Pub. L.
101–595, title VII, § 702,
Nov. 16, 1990, 104 Stat.
2994; Pub. L. 102–241, § 47,
Dec. 19, 1991, 105 Stat.
2227; Pub. L. 106–398, § 1
[div.
C,
title
XXXV,
§ 3504], Oct. 30, 2000, 114
Stat. 1654, 1654A–493; Pub.
L. 108–426, Nov. 30, 2004,
§ 2(c)(4), 118 Stat. 2424.

§ 50113. Use and performance reports by operators of vessels
(a) FILING REQUIREMENT.—The Secretary of
Transportation by regulation 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

memorandum 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 violation. A
penalty imposed under this section on the operator of a vessel constitutes 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.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1562.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

50113 ..........

46 App.:1122a.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 212(A), as added June
25, 1956, ch. 437, 70 Stat.
332; Aug. 6, 1981, Pub. L.
97–31, § 12(70), 95 Stat. 159.

CHAPTER 503—ADMINISTRATIVE
Sec.

50301.
50302.
50303.
50304.
50305.
50306.

Vessel Operations Revolving Fund.
Port development.
Operating property and extending term of
notes.
Sale and transfer of property.
Appointment of trustee or receiver and operation of vessels.
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, reconditioning, and improvement of merchant vessels
under the jurisdiction of the Secretary. The
Fund has a working capital of $20,000,000, to remain available 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
employment of persons by the Government, the
seamen may be employed in accordance 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

§ 50302

TITLE 46—SHIPPING

limitations on amounts stated in that appropriation.
(d) TRANSFERS.—The unexpended balances of
working funds or of allocation accounts established after January 1, 1951, for the activities
provided for in subsection (a), and receipts received from those activities, may be transferred
to the Fund, which shall be available for the
purposes of those working funds or allocation
accounts.
(e) LIMITATION.—
(1) IN GENERAL.—Amounts made available to
the Secretary for maritime activities by this
section or any other law may not be used to
pay for a vessel described in paragraph (2) unless the compensation to be paid is computed
under section 56303 of this title as that section
is interpreted by the Comptroller General.
(2) APPLICABLE VESSELS.—Paragraph (1) applies to a vessel—
(A) the title to which is acquired by the
Government by requisition or purchase;
(B) the use of which is taken by requisition
or agreement; or
(C) lost while insured by the Government.
(3) NONAPPLICABLE VESSELS.—Paragraph (1)
does not apply to a vessel under a construction-differential subsidy contract.
(f) AVAILABILITY FOR ADDITIONAL PURPOSES.—
The Fund is available for—
(1) necessary expenses incurred in the protection, preservation, maintenance, acquisition, or use of vessels involved in mortgage
foreclosure or forfeiture proceedings instituted by the Government, including payment
of prior claims and liens, expenses of sale, or
other related charges;
(2) necessary expenses incident to the redelivery and lay-up, in the United States, of vessels chartered as of June 20, 1956, under agreements not calling for their return to the Government;
(3) the activation, repair, and deactivation
of merchant vessels chartered for limited
emergency purposes during fiscal year 1957
under the jurisdiction of the Secretary; and
(4) payment of expenses of custody and
maintenance of Government-owned vessels not
in the National Defense Reserve Fleet.
(g) EXPENSES AND RECEIPTS RELATED TO CHAROPERATIONS.—The Fund is available for expenses incurred in activating, repairing, and deactivating merchant vessels chartered under the
jurisdiction of the Secretary. Receipts from
charter operations of Government-owned vessels
under the jurisdiction of the Secretary shall be
credited to the Fund.
TER

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1562.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

50301(a) ......

46 App.:1241a (1st
sentence).

50301(b) ......

46 App.:1241a (2d
sentence words
before 2d proviso).

Source (Statutes at Large)
June 2, 1951, ch. 121 (pars.
under heading ‘‘Vessel Operations
Revolving
Fund’’), 65 Stat. 59; Pub.
L. 97–31, § 12(128), Aug. 6,
1981, 95 Stat. 165; Pub. L.
108–271, § 8(b), July 7, 2004,
118 Stat. 814.

Page 272

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section

Source (U.S. Code)

50301(c) ......

50301(f) .......

46 App.:1241a (2d
sentence 2d proviso).
46 App.:1241a (2d
sentence last proviso).
46 App.:1241a (last
sentence).
46 App.:1241b.

50301(g) ......

46 App.:1241b note.
46 App.:1241c.

50301(d) ......
50301(e) ......

Source (Statutes at Large)

June 20, 1956, ch. 415, title I,
§ 101 (4th complete par. on
p. 319), 70 Stat. 319; Pub.
L. 97–31, § 12(129), Aug. 6,
1981, 95 Stat. 165.
Aug. 1, 1956, ch. 846, 70 Stat.
897; Pub. L. 97–31, § 12(130),
Aug. 6, 1981, 95 Stat. 165.

In subsection (c), the words ‘‘Director of the Office of
Management and Budget’’ are substituted for ‘‘Bureau
of the Budget’’ in the Act of June 2, 1951 (ch. 121, 65
Stat. 59), because of sections 101 and 102 of Reorganization Plan No. 2 of 1970 (5 App. U.S.C.) and 31 U.S.C. ch.
5. The words ‘‘for the purposes of that appropriation’’
are omitted for clarity and for consistency in the subsection.
In subsection (d), the words ‘‘notwithstanding any
other provisions of law’’ and ‘‘and consolidated with’’
are omitted as unnecessary.
In subsection (e), in paragraph (1), the words ‘‘Comptroller General’’ are substituted for ‘‘Government Accountability Office’’ for consistency in the revised
title. Paragraph (3) is substituted for ‘‘(except in cases
where section 1212 of this Appendix is applicable)’’ because section 1212 applies to all vessels under a construction-differential subsidy contract.
In subsection (f), the words ‘‘On and after June 20,
1956’’, and the last proviso in the 4th complete par. at
70 Stat. 319 (46 App. U.S.C. 1241b note), are omitted as
obsolete.
In subsection (g), the words ‘‘beginning July 1, 1956’’
and ‘‘after July 1, 1956’’ are omitted as obsolete.

§ 50302. Port development
(a) GENERAL REQUIREMENTS.—With the objective of promoting, encouraging, and developing
ports and transportation facilities in connection
with water commerce over which the Secretary
of Transportation has jurisdiction, the Secretary, in cooperation with the Secretary of the
Army, shall—
(1) investigate territorial regions and zones
tributary to ports, taking into consideration
the economies of transportation by rail,
water, and highway and the natural direction
of the flow of commerce;
(2) investigate the causes of congestion of
commerce at ports and applicable remedies;
(3) investigate the subject of water terminals, including the necessary docks, warehouses, and equipment, to devise and suggest
the types most appropriate for different locations and for the most expeditious and economical transfer or interchange of passengers
or property between water carriers and rail
carriers;
(4) consult with communities on the appropriate location and plan of construction of
wharves, piers, and water terminals;
(5) investigate the practicability and advantages of harbor, river, and port improvements
in connection with foreign and coastwise
trade; and
(6) investigate any other matter that may
tend to promote and encourage the use by ves-

Page 273

TITLE 46—SHIPPING

sels of ports adequate to care for the freight
that naturally would pass through those ports.
(b) SUBMISSION OF FINDINGS TO SURFACE
TRANSPORTATION BOARD.—After an investigation
under subsection (a), if the Secretary of Transportation believes that the rates or practices of
a rail carrier subject to the jurisdiction of the
Surface Transportation Board are detrimental
to the objective specified in subsection (a), or
that new rates or practices, new or additional
port terminal facilities, or affirmative action by
a rail carrier is necessary to promote that objective, the Secretary may submit findings to the
Board for action the Board considers appropriate under existing law.
(c) PORT INFRASTRUCTURE DEVELOPMENT PROGRAM.—
(1) ESTABLISHMENT OF PROGRAM.—The Secretary of Transportation, through the Maritime Administrator, shall establish a port infrastructure development program for the improvement of port facilities as provided in this
subsection.
(2) AUTHORITY OF THE ADMINISTRATOR.—In
order to carry out any project under the program established under paragraph (1), the Administrator may—
(A) receive funds provided for the project
from Federal, non-Federal, and private entities that have a specific agreement or contract with the Administrator to further the
purposes of this subsection;
(B) coordinate with other Federal agencies
to expedite the process established under the
National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) for the improvement
of port facilities to improve the efficiency of
the transportation system, to increase port
security, or to provide greater access to port
facilities;
(C) seek to coordinate all reviews or requirements with appropriate local, State,
and Federal agencies; and
(D) provide such technical assistance to
port authorities or commissions or their
subdivisions and agents as needed for project
planning, design, and construction.
(3)

PORT

INFRASTRUCTURE

DEVELOPMENT

FUND.—

(A) ESTABLISHMENT.—There is a Port Infrastructure Development Fund for use by the
Administrator in carrying out projects
under the port infrastructure development
program. The Fund shall be available to the
Administrator—
(i) to administer and carry out projects
under the program;
(ii) to receive Federal, non-Federal, and
private funds from entities which have
specific agreements or contracts with the
Administrator; and
(iii) to make refunds for projects that
will not be completed.
(B) CREDITS.—There may be deposited into
the Fund—
(i) funds from Federal, non-Federal, and
private entities which have agreements or
contracts with the Administrator and
which shall remain in the Fund until expended or refunded; and

§ 50302

(ii) such amounts as may be appropriated
or transferred, subject to subparagraph
(C), to the Fund under this subsection.
(C) TRANSFERS.—
(i) IN GENERAL.—Subject to clauses (ii)
and (iii), amounts appropriated or otherwise made available for any fiscal year for
a marine facility or intermodal facility
that includes maritime transportation
may be transferred, at the option of the recipient of such amounts, to the Fund and
administered by the Administrator as a
component of a project under the program.
(ii) PROHIBITION ON TRANSFERS.—Except
as provided in clause (iii), no funds appropriated or made available under title 23 or
chapter 53 of title 49, United States Code,
including funds from the Highway Trust
Fund (section 9503(c) of the Internal Revenue Code of 1986), funds from the Mass
Transit Account of the Highway Trust
Fund (section 9503(e) of Internal Revenue
Code of 1986), and funds provided for public
transportation programs within the mass
transit category (as defined in section
250(c)(4)(C) of the Balanced Budget and
Emergency Deficit Control Act of 1985),
shall be transferred into the Fund.
(iii) EXCEPTION.—
(I) IN GENERAL.—Amounts described in
subclause (II) are eligible for transfer
into the Fund if—
(aa) the recipient of the amounts has
a specific agreement or contract with
the Administrator;
(bb) the Department of Transportation agency that administers the
amounts to be transferred has granted
project approval for each component of
the project that is to be funded using
such amounts;
(cc) the Department of Transportation agency that administers the
amounts to be transferred and the
Maritime Administration agree to the
transfer through a signed Memorandum of Understanding; and
(dd) the amounts will be used only to
carry out the project for which funds
were approved, and in accordance with
any conditions governing the amounts
under title 23 or chapter 53 of title 49,
United States Code.
(II) AMOUNTS DESCRIBED.—The amounts
referred to in subclause (I) are amounts
appropriated or made available—
(aa) for loans, loan guarantees, or
lines of credit under chapter 6 of title
23, United States Code, for a project eligible under such chapter to facilitate
direct intermodal exchange, transfer,
and access into and out of a port as defined under section 601(a)(8)(D)(iii) of
such title, as in effect on the date of
enactment of this subsection; or
(bb) for projects under title XII of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law
111–5).

§ 50303

TITLE 46—SHIPPING

(D) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this section shall be construed to alter or otherwise affect existing
authorities to conduct port infrastructure
programs in Hawaii (as authorized by section 9008 of Public Law 109–59), Alaska (as
authorized by section 10205 of Public Law
109–59), or Guam (as authorized by section
3512 of Public Law 110–417).
(4) AUTHORIZATION OF APPROPRIATIONS.—
There are authorized to be appropriated to the
Fund such sums as may be necessary to carry
out the program, taking into account amounts
received under paragraph (3)(A)(ii).
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1564;
Pub. L. 111–84, div. C, title XXXV, § 3512, Oct. 28,
2009, 123 Stat. 2722.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

50302(a) ......

46 App.:867 (words
before proviso).

50302(b) ......

46 App.:867 (proviso).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 8, 41
Stat. 992; Exec. Order No.
6166, June 10, 1933, § 12;
June 29, 1936, ch. 858, title
II, § 204, title IX, § 904, 49
Stat. 1987, 2016; Pub. L.
97–31, § 12(40), Aug. 6, 1981,
95 Stat. 156; Pub. L. 104–88,
§ 321(1), Dec. 29, 1995, 109
Stat. 949.

In subsection (a), before paragraph (1), the words
‘‘Secretary of the Army’’ are substituted for ‘‘Secretary of War’’ in section 8 of the Merchant Marine
Act, 1920 (ch. 250, 41 Stat. 992) because of section 205(a)
of the National Security Act of 1947 (ch. 343, 61 Stat.
501). See 10 U.S.C. 3011 et seq. In paragraph (3), the
words ‘‘apparatus’’ and ‘‘appliances’’ are omitted as unnecessary. In paragraph (4), the words ‘‘consult with’’
are substituted for ‘‘advise with’’ as being more grammatical.
In subsection (b), the words ‘‘rates or practices’’ are
substituted for ‘‘rates, charges, rules, or regulations’’
for consistency in the revised title and with other titles
of the United States Code.
REFERENCES IN TEXT
The National Environmental Policy Act of 1969, referred to in subsec. (c)(2)(B), is Pub. L. 91–190, Jan. 1,
1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and
Welfare. For complete classification of this Act to the
Code, see Short Title note set out under section 4321 of
Title 42 and Tables.
Section 9503 of the Internal Revenue Code of 1986, referred to in subsec. (c)(3)(C)(ii), is classified to section
9503 of Title 26, Internal Revenue Code.
Section 250 of the Balanced Budget and Emergency
Deficit Control Act of 1985, referred to in subsec.
(c)(3)(C)(ii), is classified to section 900 of Title 2, The
Congress.
The date of enactment of this subsection, referred to
in subsec. (c)(3)(C)(iii)(II)(aa), is the date of enactment
of Pub. L. 111–84, which was approved Oct. 28, 2009.
The American Recovery and Reinvestment Act of
2009, referred to in subsec. (c)(3)(C)(iii)(II)(bb), is Pub.
L. 111–5, Feb. 17, 2009, 123 Stat. 115. The provisions of
title XII of div. A of the Act making appropriations are
not classified to the Code. For complete classification
of this Act to the Code, see Short Title of 2009 Amendment note set out under section 1 of Title 26, Internal
Revenue Code, and Tables.
Section 9008 of Public Law 109–59, referred to in subsec. (c)(3)(D), is section 9008 of Pub. L. 109–59, title IX,
Aug. 10, 2005, 119 Stat. 1926, which is not classified to
the Code.

Page 274

Section 10205 of Public Law 109–59, referred to in subsec. (c)(3)(D), is section 10205 of Pub. L. 109–59, title X,
Aug. 10, 2005, 119 Stat. 1934, which is not classified to
the Code.
Section 3512 of Public Law 110–417, referred to in subsec. (c)(3)(D), is classified to section 1421r of Title 48,
Territories and Insular Possessions.
AMENDMENTS
2009—Subsec. (c). Pub. L. 111–84 added subsec. (c).

§ 50303. Operating property and extending term
of notes
(a) GENERAL AUTHORITY.—The Secretary of
Transportation may—
(1) operate or lease docks, wharves, piers,
vessels, or real property under the Secretary’s
control, except that the prior consent of the
Secretary of Defense for such use shall be required with respect to any vessel in the Ready
Reserve Force or in the National Defense Reserve Fleet which is maintained in a retention
status for the Department of Defense; and
(2) make extensions and accept renewals of—
(A) promissory notes and other evidences
of indebtedness on property; and
(B) mortgages and other contracts securing the property.
(b) TERMS OF TRANSACTIONS.—A transaction
under subsection (a) shall be on terms the Secretary considers necessary to carry out the purposes of this subtitle, but consistent with sound
business practice.
(c) AVAILABILITY OF AMOUNTS.—Amounts received by the Secretary from a transaction
under this section are available for expenditure
by the Secretary as provided in this subtitle.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1564;
Pub. L. 110–181, div. C, title XXXV, § 3512, Jan.
28, 2008, 122 Stat. 594.)
HISTORICAL AND REVISION NOTES
Revised
Section
50303 ..........

Source (U.S. Code)
46 App.:1112.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 202, 49 Stat. 1986; Aug.
26, 1937, ch. 822, § 1, 50
Stat. 839; June 23, 1938, ch.
600, § 1, 52 Stat. 953; Pub.
L. 97–31, § 12(60), Aug. 6,
1981, 95 Stat. 158.

In subsection (a), the words ‘‘Notwithstanding any
other provision of law’’ are omitted as unnecessary. In
paragraph (1), the word ‘‘lands’’ is omitted as included
in ‘‘real property’’. In paragraph (2)(A), the word
‘‘promissory’’ is added for clarity. The words ‘‘hereby
transferred’’, referring to the transfer under the first
sentence of section 202 of the Merchant Marine Act,
1936 (repealed by section 12(60)(A) of Public Law 97–31),
are omitted as obsolete.
Subsection (b) is substituted for ‘‘in accordance with
good business methods and on such terms and conditions as he determines to effectuate the policy of this
chapter’’ and ‘‘upon such terms and conditions as he
may prescribe in accordance with sound business practice’’ for consistency and to eliminate unnecessary
words.
AMENDMENTS
2008—Subsec. (a)(1). Pub. L. 110–181 inserted ‘‘vessels,’’ after ‘‘piers,’’ and substituted ‘‘control, except
that the prior consent of the Secretary of Defense for
such use shall be required with respect to any vessel in
the Ready Reserve Force or in the National Defense Re-

Page 275

serve Fleet which is maintained in a retention status
for the Department of Defense;’’ for ‘‘control;’’.

§ 50304. Sale and transfer of property
(a) AUTHORITY TO SELL.—The Secretary of
Transportation may sell property (other than
vessels transferred under section 4 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 990)) on
terms the Secretary considers appropriate.
(b) TRANSFERS FROM MILITARY TO CIVILIAN
CONTROL.—When the President considers it in
the interest of the United States, the President
may transfer to the Secretary of Transportation
possession and control of property described in
the second paragraph of section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as
originally enacted, that is possessed and controlled by the Secretary of a military department.
(c) TRANSFERS FROM CIVILIAN TO MILITARY
CONTROL.—When the President considers it necessary, the President by executive order may
transfer to the Secretary of a military department possession and control of property described in section 17 of the Merchant Marine
Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the
Secretary of Transportation. The President’s
order shall state the need for the transfer and
the period of the need. When the President decides that the need has ended, the possession
and control shall revert to the Secretary of
Transportation. The property may not be sold
except as provided by law.
(d) VESSEL CHARTERS TO OTHER DEPARTMENTS.—On a reimbursable or nonreimbursable
basis, as determined by the Secretary of Transportation, the Secretary may charter or otherwise make available a vessel under the jurisdiction of the Secretary to any other department,
upon the request by the Secretary of the Department that receives the vessel. The prior consent
of the Secretary of Defense for such use shall be
required with respect to any vessel in the Ready
Reserve Force or in the National Defense Reserve Fleet which is maintained in a retention
status for the Department of Defense.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1565;
Pub. L. 110–181, div. C, title XXXV, § 3515, Jan.
28, 2008, 122 Stat. 595.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

50304(a) ......

46 App.:872.

50304(b) ......

46 App.:875 (1st
par.).
46 App.:875 (last
par.).

50304(c) ......

§ 50305

TITLE 46—SHIPPING

Source (Statutes at Large)
June 5, 1920, ch. 250, §§ 13, 17,
41 Stat. 993, 994; Exec.
Order No. 6166, June 10,
1933, § 12; June 29, 1936, ch.
858, title II, § 204, title IX,
§ 904, 49 Stat. 1987, 2016;
Pub. L. 97–31, § 12(44), (45),
Aug. 6, 1981, 95 Stat. 157.

In subsections (b) and (c), the words ‘‘property described in the second paragraph of section 17 of the
Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as
originally enacted’’ are substituted for ‘‘such other
docks, piers, warehouses, wharves and terminal equipment and facilities or parts thereof, including all leasehold easements, rights of way, riparian rights and
other rights, estates or interests therein or appur-

tenant thereto which were acquired . . . for military or
naval purposes during the war emergency’’, and the
words ‘‘property described in section 17 of the Merchant
Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted’’ are substituted for ‘‘property taken over by or
transferred to . . . under this section’’, because the
first paragraph of section 17 of the Merchant Marine
Act, 1920, was repealed in 1981 and reference to that
paragraph is necessary for a complete understanding of
these provisions. The words ‘‘Secretary of a military
department’’ are substituted for ‘‘War Department or
the Navy Department’’ and ‘‘Department of the Army,
Department of the Air Force, or Department of the
Navy’’ for consistency with other titles of the United
States Code. For redesignation of the Department of
War to the Department of the Army, and for transfer of
certain functions to newly established Department of
the Air Force, see sections 205(a) and 207(a) and (f) of
the National Security Act of 1947 (ch. 343, 61 Stat. 501,
502, 503).
In subsection (b), the words ‘‘possessed and controlled
by’’ are substituted for ‘‘acquired by’’ for clarity and
for consistency in the section. The word ‘‘best’’ is omitted as unnecessary.
REFERENCES IN TEXT
Section 4 of the Merchant Marine Act, 1920, referred
to in subsec. (a), is section 4 of act June 5, 1920, ch. 250,
41 Stat. 990, which was classified to section 863 of
former Title 46, Shipping, and was repealed by Pub. L.
100–710, title II, § 202(4), Nov. 23, 1988, 102 Stat. 4753.
Section 17 of the Merchant Marine Act, 1920 (ch. 250,
41 Stat. 994), as originally enacted, referred to in subsecs. (b) and (c), is section 17 of act June 5, 1920, ch. 250,
41 Stat. 994, which was classified to section 875 of the
former Appendix to this title, was subsequently amended, and as amended, was repealed and restated in subsecs. (b) and (c) of this section by Pub. L. 109–304, §§ 8(b),
19, Oct. 6, 2006, 120 Stat. 1556, 1710.
AMENDMENTS
2008—Subsec. (d). Pub. L. 110–181 added subsec. (d).

§ 50305. Appointment of trustee or receiver and
operation of vessels
(a) APPOINTMENT OF TRUSTEES AND RECEIVERS.—

(1) APPOINTMENT OF SECRETARY.—In a proceeding in a court of the United States in
which a trustee or receiver may be appointed
for a corporation operating a vessel of United
States registry between the United States and
a foreign country, on which the United States
Government holds a mortgage, the court may
appoint the Secretary of Transportation as the
sole trustee or receiver (subject to the direction of the court) if—
(A) the court finds that the appointment
will—
(i) inure to the advantage of the estate
and the parties in interest; and
(ii) tend to carry out the purposes of this
subtitle; and
(B) the Secretary expressly consents to the
appointment.
(2) APPOINTMENT OF OTHER PERSON.—The appointment of another person as trustee or receiver without a hearing becomes effective
when ratified by the Secretary, but the Secretary may demand a hearing.
(b) OPERATION OF VESSELS.—
(1) IN GENERAL.—If the court is unwilling to
allow the trustee or receiver to operate the
vessel in foreign commerce without financial

§ 50306

TITLE 46—SHIPPING

aid from the Government pending termination
of the proceeding, and the Secretary certifies
to the court that the continued operation of
the vessel is essential to the foreign commerce
of the United States and is reasonably calculated to carry out the purposes of this subtitle, the court may allow the Secretary to operate the vessel, either directly or through a
managing agent or operator employed by the
Secretary. The Secretary must agree to comply with terms imposed by the court sufficient
to protect the parties in interest. The Secretary also must agree to pay all operating
losses resulting from the operation. The operation shall be for the account of the trustee or
receiver.
(2) PAYMENT OF OPERATING LOSSES AND OTHER
AMOUNTS.—The Secretary has no claim against
the corporation, its estate, or its assets for operating losses paid by the Secretary, but the
Secretary may pay amounts for depreciation
the Secretary considers reasonable and other
amounts the court considers just. The payment of operating losses and the other
amounts and compliance with terms imposed
by the court shall be in satisfaction of any
claim against the Secretary resulting from the
operation of the vessel.
(3) DEEMED OPERATION BY GOVERNMENT.—A
vessel operated by the Secretary under this
subsection is deemed to be a vessel operated
by the United States under chapter 309 of this
title.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1565.)
HISTORICAL AND REVISION NOTES
Revised
Section
50305 ..........

Source (U.S. Code)
46 App.:1247.

(b) FEES AND MILEAGE.—Persons subpoenaed
by the Secretary under subsection (a) shall be
paid the same fees and mileage paid to witnesses
in the courts of the United States.
(c) ENFORCEMENT OF SUBPOENAS.—If a person
disobeys a subpoena issued under subsection (a),
the Secretary may seek an order enforcing the
subpoena from the district court of the United
States for the district in which the person resides or does business. Process may be served in
the judicial district in which the person resides
or is found. The court may issue an order to
obey the subpoena and punish a refusal to obey
as a contempt of court.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1566.)
HISTORICAL AND REVISION NOTES
Revised
Section

In subsection (a)(1), before subparagraph (A), the
words ‘‘Notwithstanding any other provision of law’’
and ‘‘bankruptcy, equity, or admiralty’’ are omitted as
unnecessary.
In subsection (a)(2), the words ‘‘but the Secretary
may demand a hearing’’ are substituted for ‘‘unless the
Secretary shall deem a hearing necessary’’ for clarity.
In subsection (b)(1), the words ‘‘subject to the orders
of the court’’ and ‘‘comply with the terms imposed by
the court’’ are omitted as unnecessary.
In subsection (b)(2), the words ‘‘operating losses paid
by the Secretary’’ are substituted for ‘‘the amount of
such payments’’ for clarity.
In subsection (b)(3), the words ‘‘vessel operated by the
United States’’ are substituted for ‘‘vessel of the
United States’’ for clarity and consistency with chapter 309.

§ 50306. Requiring testimony and records in investigations
(a) IN GENERAL.—In conducting an investigation that the Secretary of Transportation considers necessary and proper to carry out this
subtitle, the Secretary may administer oaths,
take evidence, and subpoena persons to testify
and produce documents relevant to the matter
under investigation. Persons may be required to
attend or produce documents from any place in
the United States at any designated place of
hearing.

Source (U.S. Code)

50306 ..........

46 App.:1124.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 214, 49 Stat. 1991; June
23, 1938, ch. 600, § 3, 52
Stat. 954; Pub. L. 91–452,
title II, § 241, Oct. 15, 1970,
84 Stat. 930; Pub. L. 97–31,
§ 12(72), Aug. 6, 1981, 95
Stat. 159; Pub. L. 98–237,
§ 20(a), Mar. 20, 1984, 98
Stat. 89; Pub. L. 98–595, § 2,
Oct. 30, 1984, 98 Stat. 3132.

In subsection (a), the word ‘‘affirmations’’ is omitted
as unnecessary because of the definition of ‘‘oath’’ in 1
U.S.C. 1. The words ‘‘or any territory, district, or possession thereof’’ are omitted as unnecessary because of
the definition of ‘‘United States’’ in chapter 1 of the revised title.
Subsection (c) is substituted for the source provision
to eliminate unnecessary words.

CHAPTER 505—OTHER GENERAL
PROVISIONS

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 908, as added Pub. L.
95–598, title III, § 334, Nov.
6, 1978, 92 Stat. 2680; Pub.
L. 97–31, § 12(134), Aug. 6,
1981, 95 Stat. 165.

Page 276

Sec.

50501.
50502.
50503.
50504.

Entities deemed citizens of the United States.
Applicability to receivers, trustees, successors, and assigns.
Oceanographic research vessels.
Sailing school vessels.

§ 50501. Entities deemed citizens of the United
States
(a) IN GENERAL.—In this subtitle, a corporation, partnership, or association is deemed to be
a citizen of the United States only if the controlling interest is owned by citizens of the
United States. However, if the corporation, partnership, or association is operating a vessel in
the coastwise trade, at least 75 percent of the interest must be owned by citizens of the United
States.
(b) ADDITIONAL REQUIREMENTS FOR CORPORATIONS.—In this subtitle, a corporation is deemed
to be a citizen of the United States only if, in
addition to satisfying the requirements in subsection (a)—
(1) it is incorporated under the laws of the
United States or a State;
(2) its chief executive officer, by whatever
title, and the chairman of its board of directors are citizens of the United States; and
(3) no more of its directors are noncitizens
than a minority of the number necessary to
constitute a quorum.
(c) DETERMINATION OF CONTROLLING CORPORATE
INTEREST.—The controlling interest in a cor-

Page 277

§ 50504

TITLE 46—SHIPPING

poration is owned by citizens of the United
States under subsection (a) only if—
(1) title to the majority of the stock in the
corporation is vested in citizens of the United
States free from any trust or fiduciary obligation in favor of a person not a citizen of the
United States;
(2) the majority of the voting power in the
corporation is vested in citizens of the United
States;
(3) there is no contract or understanding by
which the majority of the voting power in the
corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of
the United States; and
(4) there is no other means by which control
of the corporation is given to or permitted to
be exercised by a person not a citizen of the
United States.

Security Act of 2003. Thus, subchapter VI is being omitted from the revised title and will instead appear as a
note under section 53101. The words ‘‘and, in the case of
a corporation, partnership, or association operating a
vessel on the Great Lakes, or on bays, sounds, rivers,
harbors, or inland lakes of the United States the
amount of interest required to be owned by a citizen of
the United States shall be not less than 75 per centum’’
in 46 App. U.S.C. 1244(c) are omitted as covered by the
75 percent ownership requirement for operation in the
coastwise trade.
In subsection (b)(1), the words ‘‘Territory, District, or
possession thereof’’ are omitted because of the definition of ‘‘State’’ in chapter 1 of the revised title.

§ 50502. Applicability to receivers, trustees, successors, and assigns
This subtitle applies to receivers, trustees,
successors, and assigns of any person to whom
this subtitle applies.

(d) DETERMINATION OF 75 PERCENT CORPORATE
INTEREST.—At least 75 percent of the interest in
a corporation is owned by citizens of the United
States under subsection (a) only if—
(1) title to at least 75 percent of the stock in
the corporation is vested in citizens of the
United States free from any trust or fiduciary
obligation in favor of a person not a citizen of
the United States;
(2) at least 75 percent of the voting power in
the corporation is vested in citizens of the
United States;
(3) there is no contract or understanding by
which more than 25 percent of the voting
power in the corporation may be exercised, directly or indirectly, in behalf of a person not
a citizen of the United States; and
(4) there is no other means by which control
of more than 25 percent of any interest in the
corporation is given to or permitted to be exercised by a person not a citizen of the United
States.

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1567.)

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1566.)

The definitions of ‘‘oceanographic research vessel’’
and ‘‘scientific personnel’’ in 46 App. U.S.C. 441 are
omitted because substantially the same definitions are
already in 46 U.S.C. 2101.
The text of 46 App. U.S.C. 444 is omitted because section 10101(3) of title 46, which defines ‘‘seaman’’ for purposes of part G of subtitle II of title 46, already contains an exception for scientific personnel. Title 53 of
the Revised Statutes, referred to [in] 46 App. U.S.C. 444,
was previously codified principally in part G of subtitle
II of title 46.

HISTORICAL AND REVISION NOTES
Revised
Section
50501(a) ......

Source (U.S. Code)
46 App.:802(a)
(words before 3d
comma and after
11th comma).

46 App.:1244(c).

50501(b) ......

50501(c) ......
50501(d) ......

Source (Statutes at Large)
Sept. 7, 1916, ch. 451,
§ 2(a)–(c), 39 Stat. 729; July
15, 1918, ch. 152, § 2, 40
Stat. 900; June 5, 1920, ch.
250, § 38, 41 Stat. 1008; Pub.
L. 86–327, § 3, Sept. 21, 1959,
73 Stat. 597; Pub. L.
105–383, title IV, § 421, Nov.
13, 1998, 112 Stat. 3439.
June 29, 1936, ch. 858, title
IX, § 905(c), 49 Stat. 2016;
June 23, 1938, ch. 600,
§ 39(b), 52 Stat. 964; Pub. L.
86–327, § 4, Sept. 21, 1959, 73
Stat. 597.

46 App.:802(a)
(words between 3d
and 11th commas).
46 App.:802(b).
46 App.:802(c).

In subsection (a), the words ‘‘and with respect to a
corporation under subchapter VI of this chapter, all directors of the corporation are citizens of the United
States’’ in 46 App. U.S.C. 1244(c) are omitted because
part A of subchapter VI contains the operating-differential subsidy program which, under 46 App. U.S.C.
1185a, is being phased out, and part B of subchapter VI
contains the Maritime Security Fleet program which is
being repealed (effective October 1, 2005) and replaced
by chapter 531 of title 46 as enacted by the Maritime

HISTORICAL AND REVISION NOTES
Revised
Section
50502 ..........

Source (U.S. Code)
46 App.:803.

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 2(d),
39 Stat. 729; June 5, 1920,
ch. 250, § 38, 41 Stat. 1008.

§ 50503. Oceanographic research vessels
An oceanographic research vessel (as defined
in section 2101 of this title) is deemed not to be
engaged in trade or commerce.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1567.)
HISTORICAL AND REVISION NOTES
Revised
Section
50503 ..........

Source (U.S. Code)
46 App.:441.

Source (Statutes at Large)
Pub. L. 89–99, §§ 1, 3, 4, July
30, 1965, 79 Stat. 424.

46 App.:443.
46 App.:444.

§ 50504. Sailing school vessels
(a) DEFINITIONS.—In this section, the terms
‘‘sailing school instructor’’, ‘‘sailing school student’’, and ‘‘sailing school vessel’’ have the
meaning given those terms in section 2101 of
this title.
(b) NOT SEAMEN.—A sailing school student or
sailing school instructor is deemed not to be a
seaman under—
(1) parts B, F, and G of subtitle II of this
title; or
(2) the maritime law doctrines of maintenance and cure or warranty of seaworthiness.
(c) NOT MERCHANT VESSEL OR ENGAGED IN
TRADE OR COMMERCE.—A sailing school vessel is
deemed not to be—
(1) a merchant vessel under section
11101(a)–(c) of this title; or

§ 51101

TITLE 46—SHIPPING

(2) a vessel engaged in trade or commerce.
(d) EVIDENCE OF FINANCIAL RESPONSIBILITY.—
The owner or charterer of a sailing school vessel
shall maintain evidence of financial responsibility to meet liability for death or injury to sailing school students and sailing school instructors on a voyage on the vessel. The amount of financial responsibility shall be at least $50,000 for
each student and instructor. Financial responsibility under this subsection may be evidenced
by insurance or other adequate financial resources.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1568.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

50504(a) ......

46 App.:446c.

50504(b) ......
50504(c) ......

46 App.:446.
46 App.:446b.

50504(d) ......

46 App.:446a.

Source (Statutes at Large)
Pub. L. 97–322, title II, §§ 204,
205, 207, Oct. 15, 1982, 96
Stat. 1589.
Pub. L. 97–322, title II, § 206,
Oct. 15, 1982, 96 Stat. 1590;
Pub. L. 98–557, § 34(b), Oct.
30, 1984, 98 Stat. 2876.

Page 278

(2) COST OF EDUCATION PROVIDED.—The term
‘‘cost of education provided’’ means the financial costs incurred by the United States Government for providing training or financial assistance to students at the Academy and the
State maritime academies, including direct financial assistance, room, board, classroom
academics, and other training activities.
(3) MERCHANT MARINE OFFICER.—The term
‘‘merchant marine officer’’ means an individual issued a license by the Coast Guard authorizing service as—
(A) a master, mate, or pilot on a documented vessel that—
(i) is of at least 1,000 gross tons as measured under section 14502 of this title or an
alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under section 14104 of this title; and
(ii) operates on the oceans or the Great
Lakes; or
(B) an engineer officer on a documented
vessel propelled by machinery of at least
4,000 horsepower.
(4) STATE MARITIME ACADEMY.—The term
‘‘State maritime academy’’ means—
(A) a State maritime academy or college
sponsored by a State and assisted under
chapter 515 of this title; and
(B) a regional maritime academy or college sponsored by a group of States and assisted under chapter 515 of this title.

In subsection (b)(1), the words ‘‘parts B, F, and G of
subtitle II of this title’’ are substituted for ‘‘the provisions of titles 52 and 53 of the Revised Statutes of the
United States and any Act amendatory thereof or supplementary thereto’’ because the relevant provisions of
titles 52 and 53 of the Revised Statutes were previously
codified in parts B, F, and G of subtitle II of title 46.
In subsection (c), references to 46 App. U.S.C. 291 and
883 are omitted for consistency with section 50503 of the
revised title.

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1568.)

PART B—MERCHANT MARINE SERVICE

HISTORICAL AND REVISION NOTES

CHAPTER 511—GENERAL
Sec.

51101.
51102.
51103.
51104.

Policy.
Definitions.
General authority of Secretary of Transportation.
General authority of Secretary of the Navy.

§ 51101. Policy
It is the policy of the United States that merchant marine vessels of the United States
should be operated by highly trained and efficient citizens of the United States and that the
United States Navy and the merchant marine of
the United States should work closely together
to promote the maximum integration of the
total seapower forces of the United States.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1568.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

51101 ..........

46 App.:1126–1(a) (1st
sentence).

Pub. L. 94–361, title VI,
§ 603(a)
(1st
sentence),
July 14, 1976, 90 Stat. 929.
June 29, 1936, ch. 858, title
XIII, § 1301 (1st sentence),
as added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 1997.

46 App.:1295 (1st sentence).

§ 51102. Definitions
In this part:
(1) ACADEMY.—The term ‘‘Academy’’ means
the United States Merchant Marine Academy
located at Kings Point, New York, and maintained under chapter 513 of this title.

Revised
Section
51102 ..........

Source (U.S. Code)
46 App.:1295a.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1302, as added Pub.
L. 96–453, § 2, Oct. 15, 1980,
94 Stat. 1997; Pub. L. 97–31,
§ 12(143), Aug. 6, 1981, 95
Stat. 166; Pub. L. 104–324,
title VII, § 708, Oct. 19,
1996, 110 Stat. 3934; Pub. L.
108–136,
title
XXXV,
§ 3515(a), Nov. 24, 2003, 117
Stat. 1792.

The definition of ‘‘Secretary’’ is omitted as unnecessary because the full title is used the first time the
term appears in each section.
In the definition of ‘‘merchant marine office’’, the
words ‘‘documented vessel’’ are substituted for ‘‘vessel
. . . which is documented under the laws of the United
States’’ because of the definition of ‘‘documented vessel’’ in 46 U.S.C. 2101, which is being moved to chapter
1 of the revised title.
In the definition of ‘‘State maritime academy’’, the
words ‘‘or territory of the United States’’ and ‘‘or territories of the United States’’ are omitted as unnecessary
because of the definition of ‘‘State’’ in chapter 1 of the
revised title.

§ 51103. General authority of Secretary of Transportation
(a) EDUCATION AND TRAINING.—The Secretary
of Transportation may provide for the education
and training of citizens of the United States for
the safe and efficient operation of the merchant
marine of the United States at all times, including operation as a naval and military auxiliary
in time of war or national emergency.
(b) SURPLUS PROPERTY FOR INSTRUCTIONAL
PURPOSES.—

Page 279

§ 51301

TITLE 46—SHIPPING

(1) IN GENERAL.—The Secretary may cooperate with and assist the institutions named in
paragraph (2) by making vessels, shipboard
equipment, and other marine equipment,
owned by the United States Government and
determined to be excess or surplus, available
to those institutions for instructional purposes, by gift, loan, sale, lease, or charter on
terms the Secretary considers appropriate.
(2) INSTITUTIONS.—The institutions referred
to in paragraph (1) are—
(A) the United States Merchant Marine
Academy;
(B) a State maritime academy; and
(C) a nonprofit training institution jointly
approved by the Secretary of Transportation
and the Secretary of the department in
which the Coast Guard is operating as offering training courses that meet Federal regulations for maritime training.
(c) ASSISTANCE FROM OTHER AGENCIES.—
(1) IN GENERAL.—The Secretary of Transportation may secure directly from an agency, on
a reimbursable basis, information, facilities,
and equipment necessary to carry out this
part.
(2) DETAILING PERSONNEL.—At the request of
the Secretary, the head of an agency (including a military department) may detail, on a
reimbursable basis, personnel from the agency
to the Secretary to assist in carrying out this
part.
(d) ACADEMY PERSONNEL.—To carry out this
part, the Secretary may—
(1) employ an individual as a professor, lecturer, or instructor at the Academy, without
regard to the provisions of title 5 governing
appointments in the competitive service; and
(2) pay the individual without regard to
chapter 51 and subchapter III of chapter 53 of
title 5.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1569.)
HISTORICAL AND REVISION NOTES

the operation of merchant vessels as a naval
and military auxiliary; and
(2) naval officer training programs for future
officers, insofar as possible, are maintained at
designated maritime academies consistent
with Navy standards and needs.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1570.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

51104 ..........

46 App.:1126–1(a)
(last sentence),
(b).
46 App.:1295 (last
sentence cl. (2)).

Source (Statutes at Large)
Pub. L. 94–361, title VI,
§ 603(a) (last sentence), (b),
July 14, 1976, 90 Stat. 929;
Pub. L. 97–31, § 12(76), Aug.
6, 1981, 95 Stat. 160.
June 29, 1936, ch. 858, title
XIII, § 1301 (last sentence
cl. (2)), as added Pub. L.
96–453, § 2, Oct. 15, 1980, 94
Stat. 1997; Pub. L. 97–31,
§ 12(142)(B), Aug. 6, 1981, 95
Stat. 166.

CHAPTER 513—UNITED STATES MERCHANT
MARINE ACADEMY
Sec.

51301.
51302.
51303.
51304.
51305.
51306.
51307.
51308.
51309.
51310.
51311.
51312.
51313.
51314.
51315.
51316.
51317.

Maintenance of the Academy.
Nomination and competitive appointment of
cadets.
Non-competitive appointments.
Additional appointments from particular
areas.
Prohibited basis for appointment.
Cadet commitment agreements.
Places of training.
Uniforms, textbooks, and transportation allowances.
Academic degree.
Deferment of service obligation under cadet
commitment agreements.
Midshipman status in the Navy Reserve.
Board of Visitors.
Advisory Board.
Limitation on charges and fees for attendance.
Gifts to the Merchant Marine Academy.
Temporary appointments to the Academy.
Adjunct professors.
AMENDMENTS

Revised
Section

Source (U.S. Code)

51103(a) ......

46 App.:1295 (last
sentence cl. (1)).

51103(b) ......

46 App.:1295g(b).

51103(c) ......
51103(d) ......

46 App.:1295g(c).
46 App.:1295g(d).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1301 (last sentence
cl. (1)), as added Pub. L.
96–453, § 2, Oct. 15, 1980, 94
Stat. 1997; Pub. L. 97–31,
§ 12(142)(A), Aug. 6, 1981, 95
Stat. 166.
June 29, 1936, ch. 858, title
XIII, § 1308(b)–(d), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2007.

In subsection (c), the word ‘‘department’’ is omitted
as unnecessary because of the definition of ‘‘agency’’ in
chapter 1 of the revised title.

§ 51104. General authority of Secretary of the
Navy
The Secretary of the Navy, in cooperation
with the Maritime Administrator and the head
of each State maritime academy, shall ensure
that—
(1) the training of future merchant marine
officers at the United States Merchant Marine
Academy and at State maritime academies includes programs for naval science training in

2011—Pub. L. 111–383, div. A, title X, § 1075(d)(25), Jan.
7, 2011, 124 Stat. 4374, amended Pub. L. 111–84,
§ 3503(b)(1). See 2009 Amendment note below.
2009—Pub. L. 111–84, div. C, title XXXV, § 3503(b)(1),
Oct. 28, 2009, 123 Stat. 2719, as amended by Pub. L.
111–383, div. A, title X, § 1075(d)(25), Jan. 7, 2011, 124 Stat.
4374, added item 51317.
2008—Pub. L. 110–417, div. C, title XXXV, § 3506(g)(2),
(h)(2), Oct. 14, 2008, 122 Stat. 4765, added items 51315 and
51316.
Pub. L. 110–181, div. C, title XXXV, § 3523(a)(1), Jan.
28, 2008, 122 Stat. 598, substituted ‘‘Navy Reserve’’ for
‘‘Naval Reserve’’ in item 51311.

§ 51301. Maintenance of the Academy
(a) IN 1 GENERAL.—The Secretary of Transportation shall maintain the United States Merchant Marine Academy as an institution of
higher education to provide instruction to individuals to prepare them for service in the merchant marine of the United States, to conduct
research with respect to maritime-related matters, and to provide such other appropriate academic support, assistance, training, and activi1 So

in original. Probably should be ‘‘IN’’.

§ 51302

TITLE 46—SHIPPING

ties in accordance with the provisions of this
chapter as the Secretary may authorize.
(b) RECRUITMENT.—The Secretary of Transportation may, subject to the availability of appropriations, expend funds available for United
States Merchant Marine Academy operating expenses for recruiting activities, including advertising, in order to obtain recruits for the Academy and cadet applicants.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1570;
Pub. L. 111–383, div. C, title XXXV, § 3504, Jan. 7,
2011, 124 Stat. 4518; Pub. L. 112–81, div. C, title
XXXV, § 3503, Dec. 31, 2011, 125 Stat. 1716.)
HISTORICAL AND REVISION NOTES
Revised
Section
51301 ..........

Source (U.S. Code)
46 App.:1295b(a).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(a), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 1998.

AMENDMENTS
2011—Pub. L. 112–81 designated existing provisions as
subsec. (a), inserted heading, and added subsec. (b).
Pub. L. 111–383 inserted ‘‘as an institution of higher
education’’ after ‘‘Academy’’ and substituted ‘‘States,
to conduct research with respect to maritime-related
matters, and to provide such other appropriate academic support, assistance, training, and activities in
accordance with the provisions of this chapter as the
Secretary may authorize.’’ for ‘‘States.’’
ACTIONS TO ADDRESS SEXUAL HARASSMENT AND VIOLENCE AT THE UNITED STATES MERCHANT MARINE
ACADEMY
Pub. L. 110–417, div. C, title XXXV, § 3507, Oct. 14, 2008,
122 Stat. 4765, provided that:
‘‘(a) REQUIRED POLICY.—The Secretary of Transportation shall direct the Superintendent of the United
States Merchant Marine Academy to prescribe a policy
on sexual harassment and sexual violence applicable to
the cadets and other personnel of the Academy.
‘‘(b) MATTERS TO BE SPECIFIED IN POLICY.—The policy
on sexual harassment and sexual violence prescribed
under this section shall include—
‘‘(1) a program to promote awareness of the incidence of rape, acquaintance rape, and other sexual offenses of a criminal nature that involve cadets or
other Academy personnel;
‘‘(2) procedures that a cadet should follow in the
case of an occurrence of sexual harassment or sexual
violence, including—
‘‘(A) a specification of the person or persons to
whom an alleged occurrence of sexual harassment
or sexual violence should be reported by a cadet and
the options for confidential reporting;
‘‘(B) a specification of any other person whom the
victim should contact; and
‘‘(C) procedures on the preservation of evidence
potentially necessary for proof of criminal sexual
assault;
‘‘(3) a procedure for disciplinary action in cases of
alleged criminal sexual assault involving a cadet or
other Academy personnel;
‘‘(4) any other sanction authorized to be imposed in
a substantiated case of sexual harassment or sexual
violence involving a cadet or other Academy personnel in rape, acquaintance rape, or any other criminal
sexual offense, whether forcible or nonforcible; and
‘‘(5) required training on the policy for all cadets
and other Academy personnel, including the specific
training required for personnel who process allegations of sexual harassment or sexual violence involving Academy personnel.
‘‘(c) ANNUAL ASSESSMENT.—
‘‘(1) The Secretary shall direct the Superintendent
to conduct an assessment at the Academy during

Page 280

each Academy program year, to be administered by
the Department of Transportation, to determine the
effectiveness of the policies, training, and procedures
of the Academy with respect to sexual harassment
and sexual violence involving Academy personnel.
‘‘(2) For the assessment at the Academy under
paragraph (1) with respect to an Academy program
year that begins in an odd-numbered calendar year,
the Superintendent shall conduct a survey, to be administered by the Department, of Academy personnel—
‘‘(A) to measure—
‘‘(i) the incidence, during that program year, of
sexual harassment and sexual violence events, on
or off the Academy reservation, that have been
reported to officials of the Academy; and
‘‘(ii) the incidence, during that program year, of
sexual harassment and sexual violence events, on
or off the Academy reservation, that have not
been reported to officials of the Academy; and
‘‘(B) to assess the perceptions of Academy personnel of—
‘‘(i) the policies, training, and procedures on
sexual harassment and sexual violence involving
Academy personnel;
‘‘(ii) the enforcement of such policies;
‘‘(iii) the incidence of sexual harassment and
sexual violence involving Academy personnel; and
‘‘(iv) any other issues relating to sexual harassment and sexual violence involving Academy personnel.
‘‘(d) ANNUAL REPORT.—
‘‘(1) The Secretary shall direct the Superintendent
of the Academy to submit to the Secretary a report
on sexual harassment and sexual violence involving
cadets or other personnel at the Academy for each
Academy program year.
‘‘(2) Each report under paragraph (1) shall include,
for the Academy program year covered by the report,
the following:
‘‘(A) The number of sexual assaults, rapes, and
other sexual offenses involving cadets or other
Academy personnel that have been reported to
Academy officials during the program year and, of
those reported cases, the number that have been
substantiated.
‘‘(B) The policies, procedures, and processes implemented by the Superintendent and the leadership of the Academy in response to sexual harassment and sexual violence involving cadets or other
Academy personnel during the program year.
‘‘(C) A plan for the actions that are to be taken
in the following Academy program year regarding
prevention of and response to sexual harassment
and sexual violence involving cadets or other Academy personnel.
‘‘(3) Each report under paragraph (1) for an Academy program year that begins in an odd-numbered
calendar year shall include the results of the survey
conducted in that program year under subsection
(c)(2).
‘‘(4)(A) The Superintendent shall transmit to the
Secretary, and to the Board of Visitors of the Academy, each report received by the Superintendent
under this subsection, together with the Superintendent’s comments on the report.
‘‘(B) The Secretary shall transmit each such report,
together with the Secretary’s comments on the report, to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure.’’

§ 51302. Nomination and competitive appointment of cadets
(a) REQUIREMENTS.—An individual may be
nominated for a competitive appointment as a
cadet at the United States Merchant Marine
Academy only if the individual—

Page 281

§ 51303

TITLE 46—SHIPPING

(1) is a citizen or national of the United
States; and
(2) meets the minimum requirements that
the Secretary of Transportation shall establish.
(b) NOMINATORS.—Nominations for competitive
appointments for the positions allocated under
subsection (c) may be made as follows:
(1) A Senator may nominate residents of the
State represented by that Senator.
(2) A Member of the House of Representatives may nominate residents of the State in
which the congressional district represented
by that Member is located.
(3) A Delegate to the House of Representatives from the District of Columbia, the Virgin
Islands, Guam, the Northern Mariana Islands,
or American Samoa may nominate residents
of the jurisdiction represented by that Delegate.
(4) The Resident Commissioner to the United
States from Puerto Rico may nominate residents of Puerto Rico.
(5) The Panama Canal Commission may
nominate—
(A) residents, or sons or daughters of residents, of an area or installation in Panama
and made available to the United States
under the Panama Canal Treaty of 1977, the
agreements relating to and implementing
that Treaty, signed September 7, 1977, and
the Agreement Between the United States of
America and the Republic of Panama Concerning Air Traffic Control and Related
Services, concluded January 8, 1979; and
(B) sons or daughters of personnel of the
United States Government and the Panama
Canal Commission residing in Panama.
(c) ALLOCATION OF POSITIONS.—Positions for
competitive appointments shall be allocated
each year as follows:
(1) Positions shall be allocated for residents
of each State nominated by the Members of
Congress from that State in proportion to the
representation in Congress from that State.
(2) Four positions shall be allocated for residents of the District of Columbia nominated
by the Delegate to the House of Representatives from the District of Columbia.
(3) One position each shall be allocated for
residents of the Virgin Islands, Guam, and
American Samoa nominated by the Delegates
to the House of Representatives from the Virgin Islands, Guam, and American Samoa, respectively.
(4) One position shall be allocated for a resident of Puerto Rico nominated by the Resident Commissioner to the United States from
Puerto Rico.
(5) One position shall be allocated for a resident of the Northern Mariana Islands nominated by the Governor of the Northern Mariana Islands.
(6) Two positions shall be allocated for individuals nominated by the Panama Canal Commission.
(d) COMPETITIVE SYSTEM FOR APPOINTMENT.—
(1) ESTABLISHMENT OF SYSTEM.—The Secretary shall establish a competitive system for
selecting individuals nominated under sub-

section (b) to fill the positions allocated under
subsection (c). The system must determine the
relative merit of each individual based on
competitive examinations, an assessment of
the individual’s academic background, and
other effective indicators of motivation and
probability of successful completion of training at the Academy.
(2) APPOINTMENTS BY JURISDICTION.—The Secretary shall appoint individuals to fill the positions allocated under subsection (c) for each
jurisdiction in the order of merit of the individuals nominated from that jurisdiction.
(3) REMAINING UNFILLED POSITIONS.—If positions remain unfilled after the appointments
are made under paragraph (2), the Secretary
shall appoint individuals to fill the positions
in the order of merit of the remaining individuals nominated from all jurisdictions.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1570;
Pub. L. 111–383, div. C, title XXXV, § 3503, Jan. 7,
2011, 124 Stat. 4518.)
HISTORICAL AND REVISION NOTES
Revised
Section
51302(a) ......

51302(b) ......

51302(c) ......

51302(d) ......

Source (U.S. Code)
46 App.:1295b(b)
(1)(A).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(b)(1)–(3)(A), as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 1998;
Pub. L. 101–595, title VII,
§ 708(1), (2), Nov. 16, 1990,
104 Stat. 2995.

46 App.:1295b(b)(2)
(A) (related to
nominations).
46 App.:1295b(b)(1)
(less cl. (A)).
46 App.:1295b(b)(3)
(A)(ii) (related to
who may be nominated).
46 App.:1295b(b)(3)
(A) (less (ii) (related to who may
be nominated)).
46 App.:1295b(b)(2)
(A) (related to selection), (B),
(3)(B), (C).

In subsection (b)(6)(A), the words ‘‘residents, or sons
or daughters of residents, of an area or installation’’
are substituted for ‘‘a resident of the area or installation’’ in 46 App. U.S.C. 1295b(b)(1)(B) and ‘‘sons or
daughters of residents of any area or installation’’ in 46
App. U.S.C. 1295b(b)(3)(A)(ii) to resolve an inconsistency in the source law and to conform to the probable
intent of Congress. Although 46 App. U.S.C.
1295b(b)(1)(B) provides that a nominee must be a resident, 46 App. U.S.C. 1295b(b)(3)(A)(ii) allocates positions
only for sons or daughters of residents.
AMENDMENTS
2011—Subsec. (b)(3). Pub. L. 111–383, § 3503(1), inserted
‘‘the Northern Mariana Islands,’’ after ‘‘Guam,’’.
Subsec. (b)(5), (6). Pub. L. 111–383, § 3503(2), redesignated par. (6) as (5) and struck out former par. (5) which
read as follows: ‘‘The Governor of the Northern Mariana Islands may nominate residents of the Northern
Mariana Islands.’’

§ 51303. Non-competitive appointments
The Secretary of Transportation may appoint
each year without competition as cadets at the
United States Merchant Marine Academy not
more than 40 qualified individuals with qualities
the Secretary considers to be of special value to
the Academy. In making these appointments,
the Secretary shall try to achieve a national demographic balance at the Academy.

§ 51304

TITLE 46—SHIPPING

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1572.)
HISTORICAL AND REVISION NOTES
Revised
Section
51303 ..........

Source (U.S. Code)
46 App.:1295b(b)
(3)(D).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII,
§ 1303(b)(3)(D),
as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 1999.

§ 51304. Additional appointments from particular
areas
OTHER COUNTRIES IN WESTERN HEMISPHERE.—The President may appoint individuals
from countries in the Western Hemisphere other
than the United States to receive instruction at
the United States Merchant Marine Academy.
Not more than 12 individuals may receive instruction under this subsection at the same
time, and not more than 2 individuals from the
same country may receive instruction under
this subsection at the same time.
(b) OTHER COUNTRIES GENERALLY.—
(1) APPOINTMENT.—The Secretary of Transportation, with the approval of the Secretary
of State, may appoint individuals from countries other than the United States to receive
instruction at the Academy. Not more than 30
individuals may receive instruction under this
subsection at the same time.
(2)
REIMBURSEMENT.—The
Secretary
of
Transportation shall ensure that the country
from which an individual comes under this
subsection will reimburse the Secretary for
the cost (as determined by the Secretary) of
the instruction and allowances received by the
individual.
(a)

(c) PANAMA.—
(1) APPOINTMENT.—The Secretary of Transportation, with the approval of the Secretary
of State, may appoint individuals from Panama to receive instruction at the Academy.
Individuals appointed under this subsection
are in addition to those appointed under any
other provision of this chapter.
Secretary
of
(2)
REIMBURSEMENT.—The
Transportation shall be reimbursed for the
cost (as determined by the Secretary) of the
instruction and allowances received by an individual appointed under this subsection.
(d) ALLOWANCES AND REGULATIONS.—Individuals receiving instruction under this section are
entitled to the same allowances and are subject
to the same regulations on admission, attendance, discipline, resignation, discharge, dismissal, and graduation, as cadets at the Academy
appointed from the United States.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1572.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

51304(a) ......

46 App.:1295b(b)
(5)(A), (B).

51304(b) ......

46 App.:1295b(b)
(6)(A)–(C).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII,
§ 1303(b)(5)–(7),
as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 1999;
Pub. L. 99–368, § 5, Aug. 1,
1986, 100 Stat. 776; Pub. L.
101–595, title VII, § 708(3),
Nov. 16, 1990, 104 Stat.
2995.

Page 282

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section
51304(c) ......
51304(d) ......

Source (U.S. Code)

Source (Statutes at Large)

46 App.:1295b(b)
(7)(A), (B).
46 App.:1295b(b)
(5)(C), (6)(D),
(7)(C).

The word ‘‘appoint’’ is substituted for ‘‘designate’’
and ‘‘permit’’ for consistency in the chapter.

§ 51305. Prohibited basis for appointment
Preference may not be given to an individual
for appointment as a cadet at the United States
Merchant Marine Academy because one or more
members of the individual’s immediate family
are alumni of the Academy.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1572.)
HISTORICAL AND REVISION NOTES
Revised
Section
51305 ..........

Source (U.S. Code)
46 App.:1295b(b)
(3)(E).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII,
§ 1303(b)(3)(E),
as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 1999.

§ 51306. Cadet commitment agreements
(a) AGREEMENT REQUIREMENTS.—A citizen of
the United States appointed as a cadet at the
United States Merchant Marine Academy must
sign, as a condition of the appointment, an
agreement to—
(1) complete the course of instruction at the
Academy;
(2) fulfill the requirements for a license as
an officer in the merchant marine of the
United States before graduation from the
Academy;
(3) maintain a valid license as an officer in
the merchant marine of the United States for
at least 6 years after graduation from the
Academy, accompanied by the appropriate national and international endorsements and
certification required by the Coast Guard for
service aboard vessels on domestic and international voyages;
(4) apply for, and accept if tendered, an appointment as a commissioned officer in the
Navy Reserve (including the Merchant Marine
Reserve, Navy Reserve), the Coast Guard Reserve, or any other reserve unit of an armed
force of the United States, and, if tendered the
appointment, to serve for at least 6 years after
graduation from the Academy;
(5) serve the foreign and domestic commerce
and the national defense of the United States
for at least 5 years after graduation from the
Academy—
(A) as a merchant marine officer on a documented vessel or a vessel owned and operated by the United States Government or by
a State;
(B) as an employee in a United States maritime-related industry, profession, or marine
science (as determined by the Secretary of
Transportation), if the Secretary determines
that service under subparagraph (A) is not
available to the individual;
(C) as a commissioned officer on active
duty in an armed force of the United States,

Page 283

TITLE 46—SHIPPING

as a commissioned officer in the National
Oceanic and Atmospheric Administration, or
in other maritime-related Federal employment which serves the national security interests of the United States, as determined
by the Secretary; or
(D) by a combination of the service alternatives referred to in subparagraphs (A)–(C);
and
(6) report to the Secretary on compliance
with this subsection.
(b) FAILURE TO COMPLETE COURSE OF INSTRUCTION.—

(1) ACTIVE DUTY.—If the Secretary of Transportation determines that an individual who
has attended the Academy for at least 2 years
has failed to fulfill the part of the agreement
described in subsection (a)(1), the individual
may be ordered by the Secretary of Defense to
serve on active duty in one of the armed forces
of the United States for a period of not more
than 2 years. In cases of hardship as determined by the Secretary of Transportation, the
Secretary of Transportation may waive this
paragraph in whole or in part.
(2) RECOVERY OF COST.—If the Secretary of
Defense is unable or unwilling to order an individual to serve on active duty under paragraph (1), or if the Secretary of Transportation
determines that reimbursement of the cost of
education provided would better serve the interests of the United States, the Secretary of
Transportation may recover from the individual the cost of education provided by the Government.
(c) FAILURE TO CARRY OUT OTHER
MENTS.—
(1) ACTIVE DUTY.—If the Secretary

REQUIRE-

of Transportation determines that an individual has
failed to fulfill any part of the agreement described in subsection (a)(2)–(6), the individual
may be ordered to serve on active duty for a
period of at least 3 years but not more than
the unexpired period (as determined by the
Secretary) of the service required by subsection (a)(5). The Secretary of Transportation, in consultation with the Secretary of
Defense, shall determine in which service the
individual shall serve. In cases of hardship as
determined by the Secretary of Transportation, the Secretary of Transportation may
waive this paragraph in whole or in part.
(2) RECOVERY OF COST.—If the Secretary of
Defense is unable or unwilling to order an individual to serve on active duty under paragraph (1), or if the Secretary of Transportation
determines that reimbursement of the cost of
education provided would better serve the interests of the United States, the Secretary of
Transportation may recover from the individual the cost of education provided. The Secretary may reduce the amount to be recovered
to reflect partial performance of service obligations and other factors the Secretary determines merit a reduction.

(d) ACTIONS TO RECOVER COST.—To aid in the
recovery of the cost of education provided by
the Government under a commitment agreement under this section, the Secretary of Transportation may—

§ 51306

(1) request the Attorney General to bring a
civil action against the individual; and
(2) make use of the Federal debt collection
procedures in chapter 176 of title 28 or other
applicable administrative remedies.
(e) ALTERNATIVE SERVICE.—
(1) SERVICE AS COMMISSIONED OFFICER.—An
individual who, for the 5-year period following
graduation from the Academy, serves as a
commissioned officer on active duty in an
armed force of the United States or as a commissioned officer of the National Oceanic and
Atmospheric Administration or the Public
Health Service shall be excused from the requirements of paragraphs (3) through (5) of
subsection (a).
(2) MODIFICATION OR WAIVER.—The Secretary
may modify or waive any of the terms and
conditions set forth in subsection (a) through
the imposition of alternative service requirements.
(f) SERVICE OBLIGATION PERFORMANCE REPORTREQUIREMENT.—

ING

(1) IN GENERAL.—Subject to any otherwise
applicable restrictions on disclosure in section
552a of title 5, the Secretary of Defense, the
Secretary of the department in which the
Coast Guard is operating, the Administrator of
the National Oceanic and Atmospheric Administration, and the Surgeon General of the Public Health Service—
(A) shall report the status of obligated
service of an individual graduate of the
Academy upon request of the Secretary; and
(B) may, in their discretion, notify the
Secretary of any failure of the graduate to
perform the graduate’s duties, either on active duty or in the Ready Reserve component of their respective service, or as a commissioned officer of the National Oceanic
and Atmospheric Administration or the Public Health Service, respectively.
(2) INFORMATION TO BE PROVIDED.—A report
or notice under paragraph (1) shall identify
any graduate determined to have failed to
comply with service obligation requirements
and provide all required information as to why
such graduate failed to comply.
(3) CONSIDERED AS IN DEFAULT.—Upon receipt
of such a report or notice, such graduate may
be considered to be in default of the graduate’s
service obligations by the Secretary, and subject to all remedies the Secretary may have
with respect to such a default.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1572;
Pub. L. 109–163, div. A, title V, § 515(g)(2)(A), Jan.
6, 2006, 119 Stat. 3236; Pub. L. 109–364, div. C, title
XXXV, §§ 3505(a), 3506(a), Oct. 17, 2006, 120 Stat.
2516, 2517; Pub. L. 110–181, div. C, title XXXV,
§§ 3523(a)(1), (b), 3526(b)(1), (c)(1), (g), Jan. 28, 2008,
122 Stat. 598, 600–602.)

§ 51307

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

51306(a) ......

46 App.:1295b(e)(1).

51306(b) ......
51306(c) ......
51306(d) ......

46 App.:1295b(e)(2).
46 App.:1295b(e)(3).
46 App.:1295b(e)(4).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII,
§ 1303(e)(1)–(4),
as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 2000;
Pub. L. 97–31, § 12(144)(A),
Aug. 6, 1981, 95 Stat. 166;
Pub. L. 101–595, title VII,
§ 707(a), Nov. 16, 1990, 104
Stat. 2995; Pub. L. 108–136,
title XXXV, § 3515(b), Nov.
24, 2003, 117 Stat. 1792.

In subsection (a), before paragraph (1), the words
‘‘after the date occurring 6 months after October 1,
1981’’ are omitted as obsolete. In paragraph (2), the
words ‘‘before graduating’’ are substituted for ‘‘on or
before the date of graduation’’ to eliminate unnecessary words. In paragraph (5)(A), the words ‘‘or territories’’ are omitted as unnecessary because of the definition of ‘‘State’’ in chapter 1 of the revised title.
In subsection (d), the words ‘‘bring a civil action’’ are
substituted for ‘‘begin court proceedings’’ for consistency in the revised title and with rule 2 of the Federal
Rules of Civil Procedure (28 App. U.S.C.).
AMENDMENTS
2008—Pub. L. 110–181, § 3526(g), repealed Pub. L.
109–364, §§ 3505(a) and 3506(a). See 2006 Amendment note
below.
Pub. L. 110–181, § 3523(b), repealed Pub. L. 109–163,
§ 515(g)(2)(A). See 2006 Amendment note below.
Subsec. (a)(4). Pub. L. 110–181, § 3523(a)(1), incorporated the substance of the amendment by Pub. L.
109–163, § 515(g)(2)(A), into this section by substituting
‘‘Navy Reserve’’ for ‘‘Naval Reserve’’ in two places. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
Subsecs. (e), (f). Pub. L. 110–181, § 3526(b)(1), (c)(1), incorporated the substance of the amendments by Pub. L.
109–364, §§ 3505(a), 3506(a), into this section by adding
subsecs. (e) and (f). See 2006 Amendment note below and
section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.
2006—Pub. L. 109–364, §§ 3505(a), 3506(a), which directed
the amendment of section 1295b(e) of the former Appendix to this title from which this section was derived,
were repealed by Pub. L. 110–181, § 3526(g). See 2008
Amendment note for subsecs. (e) and (f) and Historical
and Revision notes above.
Pub. L. 109–163, § 515(g)(2)(A), which directed the
amendment of section 1295b of the former Appendix to
this title from which this section was derived, was repealed by Pub. L. 110–181, § 3523(b). See 2008 Amendment
note for subsec. (a)(4) and Historical and Revision notes
above.
EFFECTIVE DATE OF 2008 AMENDMENT
Pub. L. 110–181, div. C, title XXXV, § 3526(b)(2), Jan.
28, 2008, 122 Stat. 601, provided that: ‘‘Section 51306(e) of
title 46, United States Code, as added by paragraph (1),
applies only to an individual who enrolls as a cadet at
the United States Merchant Marine Academy, and
signs an agreement under section 51306(a) of title 46,
after October 17, 2006.’’
Pub. L. 110–181, div. C, title XXXV, § 3526(c)(2), Jan. 28,
2008, 122 Stat. 602, provided that: ‘‘Section 51306(f) of
title 46, United States Code, as added by paragraph (1),
does not apply with respect to an agreement entered
into under section 51306(a) of title 46, United States
Code, before October 17, 2006.’’
EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109–364, div. C, title XXXV, § 3505(b), Oct. 17,
2006, 120 Stat. 2517, which provided that par. (6) of sec-

Page 284

tion 1295b(e) of the former Appendix to this title from
which this section was derived, applied only to an individual who enrolled as a cadet at the United States
Merchant Marine Academy and signed an agreement
under par. (1) of that section after Oct. 17, 2006, was repealed by Pub. L. 110–181, div. C, title XXXV, § 3526(g),
Jan. 28, 2008, 122 Stat. 602.
Pub. L. 109–364, div. C, title XXXV, § 3506(b), Oct. 17,
2006, 120 Stat. 2517, which provided that the enactment
of par. (7) of section 1295b(e) of the former Appendix to
this title from which this section was derived, did not
apply with respect to an agreement entered into under
section 1295b(e) before Oct. 17, 2006, was repealed by
Pub. L. 110–181, div. C, title XXXV, § 3526(g), Jan. 28,
2008, 122 Stat. 602.

§ 51307. Places of training
The Secretary of Transportation may provide
for the training of cadets at the United States
Merchant Marine Academy—
(1) on vessels owned or subsidized by the
United States Government;
(2) on other documented vessels, with the
permission of the owner;
(3) in shipyards or plants and with industrial
or educational organizations; and
(4) on any other vessel considered by the
Secretary to be necessary or appropriate or in
the national interest.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1574;
Pub. L. 109–241, title III, § 307, July 11, 2006, 120
Stat. 528; Pub. L. 110–181, div. C, title XXXV,
§ 3525(a)(3), (b), Jan. 28, 2008, 122 Stat. 600, 601.)
HISTORICAL AND REVISION NOTES
Revised
Section
51307 ..........

Source (U.S. Code)
46 App.:1295b(f).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(f), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2002.

In paragraph (2), the words ‘‘with the permission of
the owner’’ are substituted for ‘‘if the owner . . . cooperates in such use’’ for clarity.
AMENDMENTS
2008—Pub. L. 110–181, § 3525(b), repealed Pub. L.
109–241, § 307. See 2006 Amendment note below.
Par. (4). Pub. L. 110–181, § 3525(a)(3), incorporated the
substance of the amendment by Pub. L. 109–241, § 307,
into this section by adding par. (4). See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set
out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–241, § 307, which directed the amendment of section 1295b(f) of the former Appendix to this
title from which this section was derived, was repealed
by Pub. L. 110–181, § 3525(b). See 2008 Amendment note
for par. (4) and Historical and Revision notes above.

§ 51308. Uniforms, textbooks, and transportation
allowances
The Secretary of Transportation shall provide
cadets at the United States Merchant Marine
Academy—
(1) all required uniforms and textbooks; and
(2) allowances for transportation (including
reimbursement of traveling expenses) when
traveling under orders as a cadet.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1574.)

Page 285
HISTORICAL AND REVISION NOTES
Revised
Section
51308 ..........

Source (U.S. Code)
46 App.:1295b(d).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(d), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2000.

§ 51309. Academic degree
(a) BACHELOR’S DEGREE.—
(1) IN GENERAL.—The Superintendent of the
United States Merchant Marine Academy may
confer the degree of bachelor of science on an
individual who—
(A) has met the conditions prescribed by
the Secretary of Transportation; and
(B) if a citizen of the United States, has
passed the examination for a merchant marine officer’s license.
(2) EFFECT OF PHYSICAL DISQUALIFICATION.—
An individual not allowed to take the examination for a merchant marine officer’s license
only because of physical disqualification may
not be denied a degree for not taking the examination.
(b) MASTER’S DEGREE.—The Superintendent of
the Academy may confer a master’s degree on
an individual who has met the conditions prescribed by the Secretary. A master’s degree program may be funded through non-appropriated
funds. To maintain the appropriate academic
standards, the program shall be accredited by
the appropriate accreditation body. Nonappropriated funds received for this purpose shall
be credited to the Maritime Administration’s
Operations and Training appropriation, to remain available until expended, for those expenses directly related to the purpose of such receipts. The Superintendent shall maintain a separate and detailed accounting of nonappropriated fund receipts and all associated expenses.
The Secretary may prescribe regulations necessary to administer such a program.
(c) GRADUATION NOT ENTITLEMENT TO HOLD LICENSE.—Graduation from the Academy does not
entitle an individual to hold a license authorizing service on a merchant vessel.

51309(a) ......

46 App.:1295b(g)(1).

51309(b) ......
51309(c) ......

46 App.:1295b(g)(2).
46 App.:1295b(b)(8).

§ 51310. Deferment of service obligation under
cadet commitment agreements
The Secretary of Transportation may defer
the service commitment of an individual under
section 51306(a)(5) of this title (as specified in
the cadet commitment agreement) for not more
than 2 years if the individual is engaged in a
graduate course of study approved by the Secretary. However, deferment of service as a commissioned officer under section 51306(a)(5) must
be approved by the Secretary of the military department that has jurisdiction over the service
or by the Secretary of Commerce for service
with the National Oceanic and Atmospheric Administration.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1575.)
HISTORICAL AND REVISION NOTES
Revised
Section
51310 ..........

Source (U.S. Code)
46 App.:1295b(e)(5).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(e)(5), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2001; Pub. L.
97–31, § 12(144)(B), Aug. 6,
1981, 95 Stat. 166; Pub. L.
108–136,
title
XXXV,
§ 3515(b)(6), Nov. 24, 2003,
117 Stat. 1793.

§ 51311. Midshipman status in the Navy Reserve

June 29, 1936, ch. 858, title
XIII, § 1303(g), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2002; restated
Pub. L. 108–136, title
XXXV, § 3515(c), Nov. 24,
2003, 117 Stat. 1794.
June 29, 1936, ch. 858, title
XIII, § 1303(b)(8), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 1997; Pub. L.
99–368, § 5, Aug. 1, 1986, 100
Stat. 776.

(3) COORDINATION.—The Secretary of the
Navy shall carry out paragraphs (1) and (2) in
coordination with the Secretary of Transportation.

HISTORICAL AND REVISION NOTES
Source (U.S. Code)

Operations and Training appropriation, to remain
available until expended, for those expenses directly related to the purpose of such receipts. The Superintendent shall maintain a separate and detailed accounting
of nonappropriated fund receipts and all associated expenses.’’

(a) APPLICATION REQUIREMENT.—Before being
appointed as a cadet at the United States Merchant Marine Academy, a citizen of the United
States must agree to apply for midshipman
status in the Navy Reserve (including the Merchant Marine Reserve, Navy Reserve).
(b) APPOINTMENT.—
(1) IN GENERAL.—A citizen of the United
States appointed as a cadet at the Academy
shall be appointed by the Secretary of the
Navy as a midshipman in the Navy Reserve
(including the Merchant Marine Reserve, Navy
Reserve).
(2) RIGHTS AND PRIVILEGES.—The Secretary
of the Navy shall provide for cadets of the
Academy who are midshipmen in the United
States Navy Reserve to be—
(A) issued an identification card (referred
to as a ‘‘military ID card’’); and
(B) entitled to all rights and privileges in
accordance with the same eligibility criteria
as apply to other members of the Ready Reserve of the reserve components of the
armed forces.

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1574;
Pub. L. 111–84, div. C, title XXXV, § 3514, Oct. 28,
2009, 123 Stat. 2724.)

Revised
Section

§ 51311

TITLE 46—SHIPPING

Source (Statutes at Large)

AMENDMENTS
2009—Subsec. (b). Pub. L. 111–84 inserted before last
sentence ‘‘Nonappropriated funds received for this purpose shall be credited to the Maritime Administration’s

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1575;
Pub. L. 109–163, div. A, title V, § 515(g)(2), Jan. 6,
2006, 119 Stat. 3236; Pub. L. 110–181, div. C, title
XXXV, § 3523(a)(1), (b), Jan. 28, 2008, 122 Stat. 598,
600.)

§ 51312

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
51311(a) ......

51311(b) ......

Source (U.S. Code)
46 App.:1295b(b)
(3)(F).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(b)(3)(F), (c), as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 1999,
2000; Pub. L. 105–261, div.
A, title V, § 568, Oct. 17,
1998, 112 Stat. 2031; Pub. L.
106–65, div. A, title X,
§ 1066(b)(5), Oct. 5, 1999, 113
Stat. 772.

46 App.:1295b(c).

Page 286

ber of the Board or a staff member designated
under subsection (c) shall be allowed travel expenses, including per diem in lieu of subsistence,
as authorized by section 5703 of title 5.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1575.)
HISTORICAL AND REVISION NOTES
Revised
Section
51312 ..........

Source (U.S. Code)
46 App.:1295b(h).

AMENDMENTS
2008—Pub. L. 110–181, § 3523(b), repealed Pub. L.
109–163, § 515(g)(2). See 2006 Amendment note below.
Subsecs. (a), (b)(1), (2). Pub. L. 110–181, § 3523(a)(1), incorporated the substance of the amendment by Pub. L.
109–163, § 515(g)(2), into this section by substituting
‘‘Navy Reserve’’ for ‘‘Naval Reserve’’ wherever appearing in section catchline and text. See 2006 Amendment
note below and section 18(a) of Pub. L. 109–304, set out
as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 515(g)(2), which directed the
amendment of section 1295b of the former Appendix to
this title from which this section was derived, was repealed by Pub. L. 110–181, § 3523(b). See 2008 Amendment
note for subsecs. (a), (b)(1), (2) and Historical and Revision notes above.

§ 51312. Board of Visitors
(a) IN GENERAL.—A Board of Visitors to the
United States Merchant Marine Academy shall
be established, for a term of 2 years commencing
at the beginning of each Congress, to visit the
Academy annually on a date determined by the
Secretary of Transportation and to make recommendations on the operation of the Academy.
(b) APPOINTMENT.—
(1) IN GENERAL.—The Board shall be composed of—
(A) 2 Senators appointed by the chairman
of the Committee on Commerce, Science,
and Transportation of the Senate;
(B) 3 Members of the House of Representatives appointed by the chairman of the Committee on Armed Services of the House of
Representatives;
(C) 1 Senator appointed by the Vice President;
(D) 2 Members of the House of Representatives appointed by the Speaker of the House
of Representatives; and
(E) the chairmen of the Committee on
Commerce, Science, and Transportation of
the Senate and the Committee on Armed
Services of the House of Representatives, as
ex officio members.
(2) SUBSTITUTE APPOINTMENT.—If an appointed member of the Board is unable to visit
the Academy as provided in subsection (a), another individual may be appointed as a substitute in the manner provided in paragraph
(1).
(c) STAFF.—The chairmen of the Committee on
Commerce, Science, and Transportation of the
Senate and the Committee on Armed Services of
the House of Representatives may designate
staff members of their committees to serve
without reimbursement as staff for the Board.
(d) TRAVEL EXPENSES.—When serving away
from home or regular place of business, a mem-

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(h), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2002; Pub. L.
97–35, title XVI, § 1607,
Aug. 13, 1981, 95 Stat. 752;
Pub. L. 101–595, title VII,
§ 703, Nov. 16, 1990, 104
Stat. 2994.

The words ‘‘Committee on Armed Services’’ are substituted for ‘‘Committee on Merchant Marine and Fisheries’’ to reflect changes in committee structure made
by the 104th Congress.

§ 51313. Advisory Board
(a) IN GENERAL.—An Advisory Board to the
United States Merchant Marine Academy shall
be established to visit the Academy at least
once during each academic year, for the purpose
of examining the course of instruction and management of the Academy and advising the Maritime Administrator and the Superintendent of
the Academy.
(b) APPOINTMENT AND TERMS.—The Board shall
be composed of not more than 7 individuals appointed by the Secretary of Transportation. The
individuals must be distinguished in education
and other fields related to the Academy. Members of the Board shall be appointed for terms of
not more than 3 years and may be reappointed.
The Secretary shall designate one of the members as chairman.
(c) TRAVEL EXPENSES.—When serving away
from home or regular place of business, a member of the Board shall be allowed travel expenses, including per diem in lieu of subsistence,
as authorized by section 5703 of title 5.
(d) RELATIONSHIP TO OTHER LAW.—The Federal
Advisory Committee Act (5 App. U.S.C.) does
not apply to the Board.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1576.)
HISTORICAL AND REVISION NOTES
Revised
Section
51313 ..........

Source (U.S. Code)
46 App.:1295b(i).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(i), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2002; Pub. L.
97–31, § 12(144)(C), Aug. 6,
1981, 95 Stat. 166.

REFERENCES IN TEXT
The Federal Advisory Committee Act, referred to in
subsec. (d), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770,
which is set out in the Appendix to Title 5, Government
Organization and Employees.

§ 51314. Limitation on charges and fees for attendance
(a) PROHIBITION.—Except as provided in subsection (b), no charge or fee for tuition, room, or
board for attendance at the United States Merchant Marine Academy may be imposed unless

Page 287

§ 51317

TITLE 46—SHIPPING

the charge or fee is specifically authorized by a
law enacted after October 5, 1994.
(b) EXCEPTION.—The prohibition specified in
subsection (a) does not apply with respect to any
item or service provided to cadets for which a
charge or fee is imposed as of October 5, 1994, or
for calculators, computers, personal and academic supplies, midshipman services such as
barber, tailor, or laundry services, and Coast
Guard license fees. The Secretary of Transportation shall notify Congress of any change made
by the Academy in the amount of a charge or fee
authorized under this subsection. Such fees shall
be credited to the Maritime Administration’s
Operations and Training appropriation, to remain available until expended, for those expenses directly related to the purposes of the
fees. Fees collected in excess of actual expenses
may be refunded to the Midshipmen through a
mechanism approved by the Secretary. The
Academy shall maintain a separate and detailed
accounting of fee revenue and all associated expenses.

Fund for appropriated or non-appropriated purposes at the Academy. The Fund consists of—
(1) gifts of money;
(2) income from donated property accepted
under this section;
(3) proceeds from the sale of donated property; and
(4) income from securities under subsection
(c) of this section.

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1576;
Pub. L. 111–84, div. C, title XXXV, § 3510, Oct. 28,
2009, 123 Stat. 2722; Pub. L. 111–117, div. A, title
I, § 176, Dec. 16, 2009, 123 Stat. 3068.)

(Added Pub. L. 110–417, div. C, title XXXV,
§ 3506(g)(1), Oct. 14, 2008, 122 Stat. 4764.)

HISTORICAL AND REVISION NOTES
Revised
Section
51314 ..........

Source (U.S. Code)
46 App.:1295b(j).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1303(j), as added
Pub. L. 108–375, Oct. 28,
2004, div. A, title V,
§ 545(e), 118 Stat. 1909.

AMENDMENTS
2009—Subsec. (b). Pub. L. 111–117 inserted at end
‘‘Such fees shall be credited to the Maritime Administration’s Operations and Training appropriation, to remain available until expended, for those expenses directly related to the purposes of the fees. Fees collected in excess of actual expenses may be refunded to
the Midshipmen through a mechanism approved by the
Secretary. The Academy shall maintain a separate and
detailed accounting of fee revenue and all associated
expenses.’’
Pub. L. 111–84 substituted ‘‘1994, or for calculators,
computers, personal and academic supplies, midshipman services such as barber, tailor, or laundry
services, and Coast Guard license fees.’’ for ‘‘1994.’’

§ 51315. Gifts to the Merchant Marine Academy
(a) IN GENERAL.—The Maritime Administrator
may accept and use conditional or unconditional
gifts of money or property for the benefit of the
United States Merchant Marine Academy, including acceptance and use for non-appropriated
fund instrumentalities of the Merchant Marine
Academy. The Maritime Administrator may accept a gift of services in carrying out the Administrator’s duties and powers. Property accepted under this section and proceeds from that
property must be used, as nearly as possible, in
accordance with the terms of the gift.
(b) ESTABLISHMENT OF ACADEMY GIFT FUND.—
There is established in the Treasury a fund, to
be known as the ‘‘Academy Gift Fund’’. Disbursements from the Fund shall be made on
order of the Maritime Administrator. Unless
otherwise specified by the terms of the gift, the
Maritime Administrator may use monies in the

(c) INVESTMENT OF FUND BALANCES.—On request of the Maritime Administrator, the Secretary of the Treasury may invest and reinvest
amounts in the Fund in securities of, or in securities the principal and interest of which is
guaranteed by, the United States Government.
(d) DISBURSEMENT AUTHORITY.—There are
hereby authorized to be disbursed from the Fund
such sums as may be on deposit, to remain
available until expended.
(e) DEDUCTIBILITY OF GIFTS.—Gifts accepted
under this section are a gift to or for the use of
the Government under the Internal Revenue
Code of 1986.

REFERENCES IN TEXT
The Internal Revenue Code of 1986, referred to in subsec. (e), is classified generally to Title 26, Internal Revenue Code.

§ 51316. Temporary appointments to the Academy
Notwithstanding any other provision of law,
the Maritime Administrator may appoint any
present employee of the United States Merchant
Marine Academy non-appropriated fund instrumentality to a position on the General Schedule
of comparable pay. Eligible personnel shall be
engaged in work permissibly funded by annual
appropriations, and such appointments to the
Civil Service shall be without regard to competition, for a term not to exceed 2 years.
(Added Pub. L. 110–417, div. C, title XXXV,
§ 3506(h)(1), Oct. 14, 2008, 122 Stat. 4765.)
REFERENCES IN TEXT
The General Schedule, referred to in text, is set out
under section 5332 of Title 5, Government Organization
and Employees.

§ 51317. Adjunct professors
(a) IN GENERAL.—The Maritime Administrator
may establish a program for the purpose of contracting with individuals as personal services
contractors to provide services as adjunct professors at the Academy, if the Maritime Administrator determines that there is a need for adjunct professors and the need is not of permanent duration.
(b) CONTRACT REQUIREMENTS.—Each contract
under the program—
(1) must be approved by the Maritime Administrator; and 1
(2) shall be for a duration, including options,
of not to exceed one year unless the Maritime
Administrator finds that exceptional circumstances justify an extension of up to one additional year.2
1 So
2 So

in original. The word ‘‘and’’ probably should not appear.
in original. The period probably should be ‘‘; and’’.

§ 51501

TITLE 46—SHIPPING

(3) shall be subject to the availability of appropriations.
(c) LIMITATION ON NUMBER OF CONTRACTORS.—
In awarding contacts 3 under this section, the
Maritime Administrator shall ensure that not
more than 25 individuals actively provide services in any one academic trimester, or equivalent, as contractors under subsection (a).
(d) REPORTING REQUIREMENTS.—When the authority granted by subsection (a) is used to hire
an adjunct professor at the Academy in fiscal
year 2010 or fiscal year 2011, the Administrator
shall notify the Committee on Armed Services
of the House of Representatives, the Committee
on Armed Services of the Senate, and the Committee on Commerce, Science, and Transportation of the Senate, including the need for and
the term of employment for the adjunct professor.
(Added Pub. L. 111–84, div. C, title XXXV,
§ 3503(a), Oct. 28, 2009, 123 Stat. 2719.)
CHAPTER 515—STATE MARITIME ACADEMY
SUPPORT PROGRAM
Sec.

51501.
51502.
51503.
51504.
51505.
51506.
51507.
51508.
51509.
51510.
51511.

General support program.
Detailing of personnel.
Regional maritime academies.
Use of training vessels.
Annual payments for maintenance and support.
Conditions to receiving payments and use of
vessels.
Places of training.
Allowances for students.
Student incentive payment agreements.
Deferment of service obligation under student
incentive payment agreements.
Midshipman status in the Navy Reserve.
AMENDMENTS

2008—Pub. L. 110–181, div. C, title XXXV, § 3523(a)(1),
Jan. 28, 2008, 122 Stat. 598, substituted ‘‘Navy Reserve’’
for ‘‘Naval Reserve’’ in item 51511.

§ 51501. General support program
STATE MARITIME ACADof Transportation shall
cooperate with and assist State maritime academies in providing instruction to individuals to
prepare them for service in the merchant marine
of the United States.
(b) COURSE DEVELOPMENT.—The Secretary
shall provide to each State maritime academy
guidance and assistance in developing courses
on the operation and maintenance of new vessels, on equipment, and on innovations being introduced to the merchant marine of the United
States.
(a) ASSISTANCE TO
EMIES.—The Secretary

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1577.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

51501(a) ......

46 App.:1295c(a).

51501(b) ......

46 App.:1295c(d)(2).

3 So

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1304(a), (d)(2), as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 2003,
2004.

in original. Probably should be ‘‘contracts’’.

Page 288

§ 51502. Detailing of personnel
At the request of the Governor of a State, the
President may detail, without reimbursement,
personnel of the Navy, the Coast Guard, and the
Maritime Service to a State maritime academy
to serve as a superintendent, professor, lecturer,
or instructor at the academy.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1577.)
HISTORICAL AND REVISION NOTES
Revised
Section
51502 ..........

Source (U.S. Code)
46 App.:1295c(e).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1304(e), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2004.

The reference to territories is omitted as unnecessary
because of the definition of ‘‘State’’ in chapter 1 of the
revised title.

§ 51503. Regional maritime academies
The Governors of the States cooperating to
sponsor a regional maritime academy shall designate in writing one of those States to conduct
the affairs of that academy. A regional maritime academy is eligible for assistance from the
United States Government on the same basis as
a State maritime academy sponsored by a single
State.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1577.)
HISTORICAL AND REVISION NOTES
Revised
Section
51503 ..........

Source (U.S. Code)
46 App.:1295c(b).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1304(b), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2003.

The reference to territories is omitted as unnecessary
because of the definition of ‘‘State’’ in chapter 1 of the
revised title.

§ 51504. Use of training vessels
(a) APPLICATIONS TO USE VESSELS.—The Governor of a State sponsoring a State maritime
academy (or the Governor of the State designated to conduct the affairs of a regional maritime academy) may apply in writing to the Secretary of Transportation to obtain the use of a
training vessel for the academy. A vessel provided under this section remains the property of
the United States Government.
(b) GENERAL AUTHORITY.—Subject to subsection (c), the Secretary may provide to a
State maritime academy, for use as a training
vessel, a suitable vessel under the control of the
Secretary or made available to the Secretary
under subsection (e). If a suitable vessel is not
available, the Secretary may build and provide a
suitable vessel.
(c) APPROVAL REQUIREMENTS.—The Secretary
may provide a vessel under this section only if—
(1) an application has been made under subsection (a);
(2) the State maritime academy satisfies
section 51506(a) of this title; and
(3) a suitable port will be available for the
safe mooring of the vessel while the academy
is using the vessel.

Page 289

§ 51505

TITLE 46—SHIPPING

(d) PREPARATION AND MAINTENANCE.—A vessel
provided under this section shall be—
(1) repaired, reconditioned, and equipped
(with all apparel, charts, books, and instruments of navigation) as necessary for use as a
training vessel; and
(2) maintained in good repair by the Secretary.
(e) AGENCY VESSELS.—An agency may provide
to the Secretary, for use by a State maritime
academy, a vessel (including equipment) that—
(1) is suitable for training purposes; and
(2) can be provided without detriment to the
service to which the vessel is assigned.
(f) FUEL COSTS.—
(1) IN GENERAL.—Subject to the availability
of appropriations, the Secretary shall pay to
each State maritime academy the costs of fuel
used by a vessel provided under this section
while used for training.
(2) MAXIMUM AMOUNTS.—The amount of the
payment to a State maritime academy under
paragraph (1) may not exceed—
(A) $100,000 for fiscal year 2006;
(B) $200,000 for fiscal year 2007; and
(C) $300,000 for fiscal year 2008 and each fiscal year thereafter.
(g) REMOVING VESSELS FROM SERVICE AND VESSHARING.—The Secretary may not—
(1) take a vessel, currently in use as a training vessel under this section, out of service to
implement an alternative program (including
vessel sharing) unless the vessel is incapable
of being maintained in good repair as required
by subsection (d); or
(2) implement a program requiring a State
maritime academy to share its training vessel
with another State maritime academy, except
with the express consent of Congress.

In subsection (a), the reference to territories is omitted as unnecessary because of the definition of ‘‘State’’
in chapter 1 of the revised title.
In subsection (e), before paragraph (1), the word
‘‘agency’’ is substituted for ‘‘department or agency of
the United States’’ because of the definition of ‘‘agency’’ in chapter 1 of the revised title.
In subsection (g), the 1st–3d sentences of section 4 of
Public Law 101–115 are omitted as obsolete.
AMENDMENTS
2008—Pub. L. 110–181, § 3523(b), repealed Pub. L.
109–163, § 3502(b). See 2006 Amendment note below.
Subsec. (f). Pub. L. 110–181, § 3523(a)(2), incorporated
the substance of the amendment by Pub. L. 109–163,
§ 3502(b), by amending heading and text of subsec. (f)
generally. Prior to amendment, text read as follows:
‘‘The Secretary may pay to a State maritime academy
the costs of fuel used by a vessel provided under this
section while used for training.’’ See 2006 Amendment
note below and section 18(a) of Pub. L. 109–304, set out
as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3502(b), which directed the
amendment of section 1295c(c)(2) of the former Appendix to this title from which subsec. (f) of this section
was derived, was repealed by Pub. L. 110–181, § 3523(b).
See 2008 Amendment note for subsec. (f) and Historical
and Revision notes above.

SEL

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1577;
Pub. L. 109–163, div. C, title XXXV, § 3502(b), Jan.
6, 2006, 119 Stat. 3548; Pub. L. 110–181, div. C, title
XXXV, § 3523(a)(2), (b), Jan. 28, 2008, 122 Stat. 599,
600.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

51504(a) ......

46 App.:1295c(c)(1)
(A)(ii), (v).

51504(b) ......

46 App.:1295c(c)(1)
(A) (1st sentence
words before
‘‘meeting the requirements’’).
46 App.:1295c(c)(1)
(A)(ii).
46 App.:1295c(c)(1)
(A) (1st sentence
words beginning
with ‘‘meeting
the requirements’’).
46 App.:1295c(c)(1)
(A)(iii).
46 App.:1295c(c)(1)
(A)(i).
46 App.:1295c(c)(1)
(A)(iv).
46 App.:1295c(c)(1)
(B).
46 App.:1295c(c)(2).
46 App.:1295c note.

51504(c)(1) ..
51504(c)(2) ..

51504(c)(3) ..
51504(d)(1) ..
51504(d)(2) ..
51504(e) ......
51504(f) .......
51504(g) ......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1304(c)(1), (2), as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 2003.

Pub. L. 101–115, § 4, Oct. 13,
1989, 103 Stat. 692; Pub. L.
101–595, title VII, § 705,
Nov. 16, 1990, 104 Stat.
2994.

§ 51505. Annual payments for maintenance and
support
(a) PAYMENT AGREEMENTS.—The Secretary of
Transportation may make an agreement (effective for not more than 4 years) with the following academies to provide annual payments to
those academies for their maintenance and support:
(1) One State maritime academy in each
State that satisfies section 51506(a) of this
title.
(2) Each regional maritime academy that
satisfies section 51506(a) of this title.
(b) PAYMENTS.—
(1) IN GENERAL.—Subject to paragraph (2), an
annual payment to an academy under subsection (a) shall be at least equal to the
amount given to the academy for its maintenance and support by the State in which it is
located, or, for a regional maritime academy,
by all States cooperating to sponsor the academy.
(2) MAXIMUM.—The amount under paragraph
(1) may not be more than $25,000. However, if
the academy satisfies section 51506(b) of this
title, the amount shall be—
(A) $100,000 for a State maritime academy;
and
(B) $300,000 for fiscal year 2006, $400,000 for
fiscal year 2007, and $500,000 for fiscal year
2008 and each fiscal year thereafter for a regional maritime academy.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1578;
Pub. L. 109–163, div. C, title XXXV, § 3502(a), Jan.
6, 2006, 119 Stat. 3547; Pub. L. 110–181, div. C, title
XXXV, § 3523(a)(3), (b), Jan. 28, 2008, 122 Stat. 599,
600.)

§ 51506

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
51505 ..........

Source (U.S. Code)
46 App.:1295c(d)(1).

HISTORICAL AND REVISION NOTES

Source (Statutes at Large)

Revised
Section

June 29, 1936, ch. 858, title
XIII, § 1304(d)(1), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2004; Pub. L.
101–115, § 5, Oct. 13, 1989,
103 Stat. 693.

51506 ..........

In subsection (b)(1), the reference to territories is
omitted as unnecessary because of the definition of
‘‘State’’ in chapter 1 of the revised title.

Page 290

Source (U.S. Code)
46 App.:1295c(f).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1304(f), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2004; Pub. L.
101–115, § 3(a), Oct. 13, 1989,
103 Stat. 692.

In subsection (a)(3), the words ‘‘administered by the
Coast Guard’’ are omitted as unnecessary.

§ 51507. Places of training
AMENDMENTS
2008—Pub. L. 110–181, § 3523(b), repealed Pub. L.
109–163, § 3502(a). See 2006 Amendment note below.
Subsec. (b)(2)(B). Pub. L. 110–181, § 3523(a)(3), incorporated the substance of the amendment by Pub. L.
109–163, § 3502(a), into this section by substituting
‘‘$300,000 for fiscal year 2006, $400,000 for fiscal year 2007,
and $500,000 for fiscal year 2008 and each fiscal year
thereafter’’ for ‘‘$200,000’’. See 2006 Amendment note
below and section 18(a) of Pub. L. 109–304, set out as a
Legislative Purpose and Construction note preceding
section 101 of this title.
2006—Pub. L. 109–163, § 3502(a), which directed the
amendment of section 1295c(d)(1) of the former Appendix to this title from which this section was derived,
was repealed by Pub. L. 110–181, § 3523(b). See 2008
Amendment note for subsec. (b)(2)(B) and Historical
and Revision notes above.

§ 51506. Conditions to receiving payments and
use of vessels
(a) GENERAL CONDITIONS.—As conditions of receiving an annual payment or the use of a vessel
under this chapter, a State maritime academy
must—
(1) provide courses of instruction on navigation, marine engineering (including steam and
diesel propulsion), the operation and maintenance of new vessels and equipment, and innovations being introduced to the merchant marine of the United States;
(2) agree in writing to conform to the standards for courses, training facilities, admissions, and instruction that the Secretary of
Transportation may establish after consultation with the superintendents of State maritime academies; and
(3) agree in writing to require, as a condition
for graduation, that each individual who is a
citizen of the United States and who is attending the academy in a merchant marine officer
preparation program pass the examination required for the issuance of a license under section 7101 of this title.
(b) ADDITIONAL CONDITION TO PAYMENTS OF
MORE THAN $25,000.—As a condition of receiving
an annual payment of more than $25,000 under
section 51505 of this title, a State maritime
academy also must agree to admit each year a
number of citizens of the United States who
meet its admission requirements and reside in a
State not supporting that academy. The Secretary shall determine the number of individuals to be admitted by each academy under this
subsection. The number may not be more than
one-third of the total number of individuals attending the academy at any time.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1579.)

The Secretary of Transportation may provide
for the training of students attending a State
maritime academy—
(1) on vessels owned or subsidized by the
United States Government;
(2) on other documented vessels, with the
permission of the owner; and
(3) in shipyards or plants and with industrial
or educational organizations.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1579.)
HISTORICAL AND REVISION NOTES
Revised
Section
51507 ..........

Source (U.S. Code)
46 App.:1295c(c)
(3)(A).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII,
§ 1304(c)(3)(A),
as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 2003.

In paragraph (2), the words ‘‘with the permission of
the owner’’ are substituted for ‘‘if the owner . . . cooperates in such use’’ for clarity.

§ 51508. Allowances for students
Under regulations prescribed by the Secretary
of Transportation, a student at a State maritime academy shall receive from the Secretary
allowances for transportation (including reimbursement of traveling expenses) when traveling
under orders to receive training under section
51507 of this title.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1579.)
HISTORICAL AND REVISION NOTES
Revised
Section
51508 ..........

Source (U.S. Code)
46 App.:1295c(c)
(3)(B).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII,
§ 1304(c)(3)(B),
as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 2004.

§ 51509. Student incentive payment agreements
(a) GENERAL AUTHORITY.—If a State maritime
academy has an agreement with the Secretary
of Transportation under section 51505 of this
title, the Secretary may make an agreement
with a student at the academy who is a citizen
of the United States to make student incentive
payments to the individual. An agreement with
a student may not be effective for more than 4
academic years. The Secretary shall allocate
payments under this section among the various
State maritime academies in an equitable manner.
(b) PAYMENTS.—Payments under an agreement
under this section shall be equal to $8,000 each
academic year and be paid in such installments
as the Secretary shall determine while the indi-

Page 291

TITLE 46—SHIPPING

vidual is attending the academy, as prescribed
by the Secretary. The payments shall be used
for uniforms, tuition, books, and subsistence.
(c) ENLISTED RESERVE STATUS.—An agreement
under this section shall require the student to
accept enlisted reserve status in the Navy Reserve (including the Merchant Marine Reserve,
Navy Reserve) or the Coast Guard Reserve before receiving any payments under the agreement.
(d) AGREEMENT REQUIREMENTS.—An agreement
under this section shall require the student to—
(1) complete the course of instruction at the
academy the individual is attending;
(2) take the examination for a license as an
officer in the merchant marine of the United
States before graduation from the academy
and fulfill the requirements for such a license
within 3 months after graduation from the
academy;
(3) maintain a valid license as an officer in
the merchant marine of the United States for
at least 6 years after graduation from the
academy, accompanied by the appropriate national and international endorsements and
certification required by the Coast Guard for
service aboard vessels on domestic and international voyages;
(4) accept, if tendered, an appointment as a
commissioned officer in the Navy Reserve (including the Merchant Marine Reserve, Navy
Reserve), the Coast Guard Reserve, or any
other reserve unit of an armed force of the
United States, and, if tendered the appointment, to serve for at least 6 years after graduation from the academy;
(5) serve the foreign and domestic commerce
and the national defense of the United States
for at least 3 years after graduation from the
academy—
(A) as a merchant marine officer on a documented vessel or a vessel owned and operated by the United States Government or by
a State;
(B) as an employee in a United States maritime-related industry, profession, or marine
science (as determined by the Secretary), if
the Secretary determines that service under
subparagraph (A) is not available to the individual;
(C) as a commissioned officer on active
duty in an armed force of the United States,
as a commissioned officer in the National
Oceanic and Atmospheric Administration, or
in other maritime-related Federal employment which serves the national security interests of the United States, as determined
by the Secretary; or
(D) by a combination of the service alternatives referred to in subparagraphs (A)–(C);
and
(6) report to the Secretary on compliance
with this subsection.
(e) FAILURE TO COMPLETE
TION.—
(1) ACTIVE DUTY.—If the

COURSE OF INSTRUC-

Secretary of Transportation determines that an individual who
has accepted the payments described in subsection (b) for a minimum of 2 academic years
has failed to fulfill the part of the agreement

§ 51509

described in subsection (d)(1), the individual
may be ordered by the Secretary of Defense to
serve on active duty in the armed forces of the
United States for a period of not more than 2
years. In cases of hardship as determined by
the Secretary of Transportation, the Secretary of Transportation may waive this paragraph in whole or in part.
(2) RECOVERY OF COST.—If the Secretary of
Defense is unable or unwilling to order an individual to serve on active duty under paragraph (1), or if the Secretary of Transportation
determines that reimbursement of the cost of
education provided would better serve the interests of the United States, the Secretary of
Transportation may recover from the individual the amount of student incentive payments, plus interest and attorney fees. The
Secretary may reduce the amount to be recovered to reflect partial performance of service
obligations and other factors the Secretary determines merit a reduction.
(f) FAILURE TO CARRY OUT OTHER
MENTS.—
(1) ACTIVE DUTY.—If the Secretary

REQUIRE-

of Transportation determines that an individual has
failed to fulfill any part of the agreement described in subsection (d)(2)–(6), the individual
may be ordered to serve on active duty for a
period of at least 2 years but not more than
the unexpired period (as determined by the
Secretary) of the service required by subsection (d)(5). The Secretary of Transportation, in consultation with the Secretary of
Defense, shall determine in which service the
individual shall serve. In cases of hardship as
determined by the Secretary of Transportation, the Secretary of Transportation may
waive this paragraph in whole or in part.
(2) RECOVERY OF COST.—If the Secretary of
Defense is unable or unwilling to order an individual to serve on active duty under paragraph (1), or if the Secretary of Transportation
determines that reimbursement of the cost of
education provided would better serve the interests of the United States, the Secretary of
Transportation may recover from the individual the amount of student incentive payments, plus interest and attorney fees. The
Secretary may reduce the amount to be recovered to reflect partial performance of service
obligations and other factors the Secretary determines merit a reduction.

(g) ACTIONS TO RECOVER COST.—To aid in the
recovery of the cost of education provided by
the Government under a commitment agreement under this section, the Secretary of Transportation may—
(1) request the Attorney General to bring a
civil action against the individual; and
(2) make use of the Federal debt collection
procedures in chapter 176 of title 28 or other
applicable administrative remedies.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1579;
Pub. L. 109–163, div. A, title V, § 515(g)(2)(A), Jan.
6, 2006, 119 Stat. 3236; Pub. L. 109–364, div. C, title
XXXV, § 3508, Oct. 17, 2006, 120 Stat. 2517; Pub. L.
110–181, div. C, title XXXV, §§ 3523(a)(1), (b),
3526(d), (g), Jan. 28, 2008, 122 Stat. 598, 600, 602;
Pub. L. 110–417, div. C, title XXXV, § 3503, Oct. 14,

§ 51510

TITLE 46—SHIPPING

2008, 122 Stat. 4762; Pub. L. 111–8, div. I, title I,
§ 177, Mar. 11, 2009, 123 Stat. 944; Pub. L. 111–84,
div. C, title XXXV, § 3507, Oct. 28, 2009, 123 Stat.
2721.)
HISTORICAL AND REVISION NOTES
Revised
Section
51509(a) ......

51509(b) ......

51509(c) ......
51509(d) ......
51509(e) ......
51509(f) .......
51509(g) ......

Source (U.S. Code)
46 App.:1295c(g)(1)
(words before 5th
comma, cl. (A)),
(8).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1304(g)(1)–(5), (8), as
added Pub. L. 96–453, § 2,
Oct. 15, 1980, 94 Stat. 2004,
2006;
Pub.
L.
97–31,
§ 12(145)(A), Aug. 6, 1981, 95
Stat. 166; Pub. L. 101–115,
§ 2(a)–(d), Oct. 13, 1989, 103
Stat. 691; Pub. L. 102–587,
title VI, § 6201(a)(1), (b),
(c), Nov. 4, 1992, 106 Stat.
5093; Pub. L. 108–136, title
XXXV, § 3515(d), Nov. 24,
2003, 117 Stat. 1794.

46 App.:1295c(g)(1)
(words between
5th comma and
dash, cls. (B), (C)).
46 App.:1295c(g)(2)
46 App.:1295c(g)(3)
46 App.:1295c(g)(4)
46 App.:1295c(g)(5)
46 App.:1295c(g)(6)

In subsection (a), the text of 46 App. U.S.C. 1295c(g)(8)
is omitted as obsolete.
In subsection (g), the words ‘‘bring a civil action’’ are
substituted for ‘‘begin court proceedings’’ for consistency in the revised title and with rule 2 of the Federal
Rules of Civil Procedure (28 App. U.S.C.).

Page 292

was derived, was repealed by Pub. L. 110–181, § 3526(g).
See 2008 Amendment note for subsec. (c) and Historical
and Revision notes above.
Pub. L. 109–163, § 515(g)(2)(A), which directed the
amendment of section 1295c of the former Appendix to
this title from which this section was derived, was repealed by Pub. L. 110–181, § 3523(b). See 2008 Amendment
notes for subsecs. (c) and (d)(4) and Historical and Revision notes above.

§ 51510. Deferment of service obligation under
student incentive payment agreements
The Secretary of Transportation may defer
the service commitment of an individual under
section 51509(d)(5) of this title (as specified in
the agreement under section 51509) for not more
than 2 years if the individual is engaged in a
graduate course of study approved by the Secretary. However, deferment of service as a commissioned officer on active duty must be approved by the Secretary of the affected military
department (or the Secretary of Commerce, for
service with the National Oceanic and Atmospheric Administration).
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1581.)
HISTORICAL AND REVISION NOTES
Revised
Section
51510 ..........

Source (U.S. Code)
46 App.:1295c(g)(7).

AMENDMENTS
2009—Pub. L. 111–84, § 3507(a), substituted ‘‘and be paid
in such installments as the Secretary shall determine’’
for ‘‘and be paid before the start of each academic year,
as prescribed by the Secretary,’’ and ‘‘academy, as prescribed by the Secretary.’’ for ‘‘academy.’’.
Pub. L. 111–8, § 177, which directed amendment identical to that made by Pub. L. 110–417, § 3503(1), (2), was
repealed by Pub. L. 111–84, § 3507(b), with Pub. L. 111–8,
§ 177, to have no force or effect. See 2008 Amendment
note below.
2008—Pub. L. 110–181, § 3526(g), repealed Pub. L.
109–364, § 3508. See 2006 Amendment note below.
Pub. L. 110–181, § 3523(b), repealed Pub. L. 109–163,
§ 515(g)(2)(A). See 2006 Amendment note below.
Subsec. (b). Pub. L. 110–417, § 3503(3), inserted ‘‘before
the start of each academic year’’ after ‘‘and be paid’’.
Pub. L. 110–417, § 3503(1), (2), substituted ‘‘$8,000’’ for
‘‘$4,000’’ and inserted ‘‘tuition,’’ after ‘‘uniforms,’’.
Subsec. (c). Pub. L. 110–181, § 3526(d), incorporated the
substance of the amendments by Pub. L. 109–364, § 3508,
into this section by striking out ‘‘Midshipman and’’ before ‘‘Enlisted’’ in heading and ‘‘midshipman and’’ before ‘‘enlisted’’ in text and inserting ‘‘or the Coast
Guard Reserve’’ after ‘‘Reserve)’’. See 2006 Amendment
note below and section 18(a) of Pub. L. 109–304, set out
as a Legislative Purpose and Construction note preceding section 101 of this title.
Pub. L. 110–181, § 3523(a)(1), incorporated the substance of the amendments by Pub. L. 109–163,
§ 515(g)(2)(A), into this section by substituting ‘‘Navy
Reserve’’ for ‘‘Naval Reserve’’ in two places. See 2006
Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
Subsec. (d)(4). Pub. L. 110–181, § 3523(a)(1), incorporated the substance of the amendments by Pub. L.
109–163, § 515(g)(2)(A), into this section by substituting
‘‘Navy Reserve’’ for ‘‘Naval Reserve’’ in two places. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–364, § 3508, which directed the
amendment of section 1295c(g)(2) of the former Appendix to this title from which subsec. (c) of this section

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1304(g)(7), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2006; Pub. L.
97–31, § 12(145)(B), Aug. 6,
1981, 95 Stat. 166; Pub. L.
108–136,
title
XXXV,
§ 3515(d)(7), Nov. 24, 2003,
117 Stat. 1795.

The words ‘‘affected military department’’ are substituted for ‘‘military department . . . which has jurisdiction over such service’’ for clarity and to eliminate
unnecessary words.

§ 51511. Midshipman status in the Navy Reserve
A citizen of the United States attending a
State maritime academy may be appointed by
the Secretary of the Navy as a midshipman in
the Navy Reserve (including the Merchant Marine Reserve, Navy Reserve).
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1582;
Pub. L. 109–163, div. A, title V, § 515(g)(2), Jan. 6,
2006, 119 Stat. 3236; Pub. L. 110–181, div. C, title
XXXV, § 3523(a)(1), (b), Jan. 28, 2008, 122 Stat. 598,
600.)
HISTORICAL AND REVISION NOTES
Revised
Section
51511 ..........

Source (U.S. Code)
46 App.:1295c(h).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1304(h), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2006.

AMENDMENTS
2008—Pub. L. 110–181, § 3523(b), repealed Pub. L.
109–163, § 515(g)(2). See 2006 Amendment note below.
Pub. L. 110–181, § 3523(a)(1), incorporated the substance of the amendment by Pub. L. 109–163, § 515(g)(2),
into this section by substituting ‘‘Navy Reserve’’ for
‘‘Naval Reserve’’ wherever appearing in section catchline and text. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.

Page 293

2006—Pub. L. 109–163, § 515(g)(2), which directed the
amendment of section 1295c of the former Appendix to
this title from which this section was derived, was repealed by Pub. L. 110–181, § 3523(b). See 2008 Amendment
notes and Historical and Revision notes above.

CHAPTER 517—OTHER SUPPORT FOR
MERCHANT MARINE TRAINING
Sec.

51701.
51702.
51703.
51704.

United States Maritime Service.
Civilian nautical schools.
Additional training.
Training for maritime oil pollution prevention, response, and clean-up.

§ 51701. United States Maritime Service
(a) GENERAL AUTHORITY.—The Secretary of
Transportation may establish and maintain a
voluntary organization, to be known as the
United States Maritime Service, for the training
of citizens of the United States to serve on merchant vessels of the United States and to perform functions to assist the United States merchant marine, as determined necessary by the
Secretary.
(b) SPECIFIC AUTHORITY.—The Secretary may—
(1) determine the number of individuals to
be enrolled for training and reserve purposes
in the Service;
(2) fix the rates of pay and allowances of the
individuals without regard to chapter 51 or
subchapter III of chapter 53 of title 5;
(3) prescribe the course of study and the periods of training for the Service; and
(4) prescribe the uniform of the Service and
the rules on providing and wearing the uniform.
(c) RANKS, GRADES, AND RATINGS.—The ranks,
grades, and ratings for personnel of the Service
shall be the same as those prescribed for personnel of the Coast Guard.
(d) MEDALS AND AWARDS.—The Secretary may
establish and maintain a medals and awards program to recognize distinguished service, superior achievement, professional performance, and
other commendable achievement by personnel of
the Service.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1582;
Pub. L. 109–163, div. C, title XXXV, § 3509, Jan. 6,
2006, 119 Stat. 3557; Pub. L. 109–364, div. C, title
XXXV, § 3510(d)(1), Oct. 17, 2006, 120 Stat. 2520;
Pub. L. 110–181, div. C, title XXXV, § 3523(a)(4),
(b), Jan. 28, 2008, 122 Stat. 599, 600.)
HISTORICAL AND REVISION NOTES
Revised
Section
51701 ..........

§ 51703

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1295e.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1306, as added Pub.
L. 96–453, § 2, Oct. 15, 1980,
94 Stat. 2006; Pub. L.
108–136,
title
XXXV,
§ 3515(e), Nov. 24, 2003, 117
Stat. 1795.

AMENDMENTS
2008—Pub. L. 110–181, § 3523(b), repealed Pub. L.
109–163, § 3509. See 2006 Amendment note below.
Subsec. (a). Pub. L. 110–181, § 3523(a)(4), incorporated
the substance of the amendment by Pub. L. 109–163,
§ 3509, into this section by substituting ‘‘of the United
States and to perform functions to assist the United
States merchant marine, as determined necessary by

the Secretary.’’ for ‘‘of the United States.’’ See 2006
Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3509, as amended by Pub. L.
109–364, § 3510(d)(1), which directed the amendment of
section 1295e(a) of the former Appendix to this title
from which subsec. (a) of this section was derived, was
repealed by Pub. L. 110–181, § 3523(b). See 2008 Amendment note for subsec. (a) and Historical and Revision
notes above.
EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109–364, div. C, title XXXV, § 3510(d)(2), Oct. 17,
2006, 120 Stat. 2521, provided that: ‘‘This subsection
[amending section 3509 of Pub. L. 109–163 which had
amended section 1295e(a) of the former Appendix to this
title, from which subsec. (a) of this section is derived]
shall be effective immediately after section 3509 of the
National Defense Authorization Act for Fiscal Year
2006 (119 Stat. 3557) [Pub. L. 109–163] takes effect [Jan.
6, 2006].’’

§ 51702. Civilian nautical schools
(a) DEFINITION.—In this section, the term ‘‘civilian nautical school’’ means a school operated
in the United States (except the United States
Merchant Marine Academy, a State maritime
academy, or another school operated by the
United States Government) that offers instruction to individuals quartered on a vessel primarily to train them for service in the merchant
marine.
(b) INSPECTION.—Each civilian nautical school
is subject to inspection by the Secretary of
Transportation.
(c) RATING AND CERTIFICATION.—The Secretary
may, under regulations the Secretary may prescribe, provide for the rating and certification of
civilian nautical schools as to the adequacy of
their course of instruction, the competence of
their instructors, and the suitability of the
equipment used in their course of instruction.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1582.)
HISTORICAL AND REVISION NOTES
Revised
Section
51702 ..........

Source (U.S. Code)
46 App.:1295f.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1307, as added Pub.
L. 96–453, § 2, Oct. 15, 1980,
94 Stat. 2007; Pub. L. 98–89,
§ 4(b), Aug. 26, 1983, 97
Stat. 603.

The text of 46 App. U.S.C. 1295f(d) is omitted because
it apparently was intended to apply to former 46 App.
U.S.C. 1295f(c), which was repealed in 1983.

§ 51703. Additional training
(a) GENERAL AUTHORITY.—The Secretary of
Transportation may provide additional training
on maritime subjects to supplement other training opportunities and make the training available to the personnel of the merchant marine of
the United States and individuals preparing for
a career in the merchant marine of the United
States.
(b) EQUIPMENT, SUPPLIES, AND CONTRACTS.—
The Secretary may—
(1) prepare or buy equipment or supplies required for the additional training; and
(2) without regard to section 6101(b) to (d) of
title 41, make contracts for services the Sec-

§ 51704

TITLE 46—SHIPPING

retary considers necessary to prepare the
equipment and supplies and to supervise and
administer the additional training.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1583;
Pub. L. 111–350, § 5(n), Jan. 4, 2011, 124 Stat. 3853.)

Page 294

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1583.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

51704(a) ......

46 App.:1295d(c)(1).

51704(b) ......

46 App.:1295d(c)
(2)(A), (4).
46 App.:1295d(c)
(2)(B), (3).

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

51703 ..........

46 App.:1295d(a), (b).

June 29, 1936, ch. 858, title
XIII, § 1305(a), (b), as added
Pub. L. 96–453, § 2, Oct. 15,
1980, 94 Stat. 2006.

In subsection (a), before paragraph (1), the words ‘‘as
the Secretary deems necessary’’ are omitted as unnecessary.
In subsection (b), the words ‘‘with any person, partnership, firm, association, or corporation’’ and ‘‘the
performance of’’ are omitted as unnecessary.
AMENDMENTS
2011—Subsec. (b)(2). Pub. L. 111–350 substituted ‘‘section 6101(b) to (d) of title 41’’ for ‘‘section 3709 of the
Revised Statutes (41 U.S.C. 5)’’.

§ 51704. Training for maritime oil pollution prevention, response, and clean-up
(a) ASSISTANCE IN ESTABLISHING PROGRAM.—
The Secretary of Transportation shall assist
maritime training institutions approved by the
Secretary in establishing a training program for
maritime oil pollution prevention, response, and
clean-up.
(b) PROVIDING TRAINING VESSELS.—Subject to
subsection (c), the Secretary may provide, with
title free of all liens, to maritime training institutions that have a program established under
subsection (a), offshore supply vessels and tug/
supply vessels that were built in the United
States and are in the possession of the Maritime
Administration because of a default on a loan
guaranteed under chapter 537 of this title.
(c) REQUIREMENTS.—In addition to any other
requirements the Secretary considers appropriate, the following requirements apply to vessels provided under this section:
(1) The vessel shall be offered to the institution at a location selected by the Secretary.
(2) The institution shall use the vessel to
train students and appropriate maritime industry personnel in oil spill prevention, response, clean-up, and related skills.
(3) The institution shall make the vessel and
qualified students available to appropriate
Federal, State, and local oil spill response authorities when there is a maritime oil spill.
(4) The institution may not sell, trade, charter, donate, scrap, or in any way alter or dispose of the vessel without prior approval of
the Secretary.
(5) The institution may not use the vessel in
competition with a privately-owned vessel
documented under chapter 121 of this title or
titled under the law of a State, unless necessary to carry out this section.
(6) When the institution can no longer use
the vessel for its training program, the institution shall return the vessel to the Secretary.
The Secretary shall take possession at the institution and thereafter may provide the vessel to another institution under this section or
dispose of the vessel.

51704(c) ......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XIII, § 1305(c), as added
Pub. L. 101–595, title VII,
§ 712, Nov. 16, 1990, 104
Stat. 2998.

In subsection (c)(5), the words ‘‘or titled under the
law of a State’’ are substituted for ‘‘documented under
the laws of . . . any State’’ for consistency with the
terminology in 46 U.S.C. 2101(46) (which is being moved
to chapter 1 of the revised title) and 46 U.S.C. ch. 125.

CHAPTER 519—MERCHANT MARINE AWARDS
Sec.

51901.
51902.
51903.
51904.
51905.
51906.
51907.
51908.

Awards for individual acts or service.
Gallant Ship Award.
Multiple awards.
Presentation to representatives.
Flags and grave markers.
Special certificates for civilian service to
armed forces.
Provision of decorations, medals, and replacements 1
Prohibition against unauthorized manufacture, sale, possession, or display of awards.
AMENDMENTS

2008—Pub.
L.
110–181,
div.
C,
title
XXXV,
§ 3523(a)(5)(B), Jan. 28, 2008, 122 Stat. 599, substituted
‘‘Provision of decorations, medals, and replacements’’
for ‘‘Manufacture and sale of awards and replacements.’’ in item 51907.

§ 51901. Awards for individual acts or service
(a) GENERAL AUTHORITY.—The Secretary of
Transportation may award decorations and medals of appropriate design (including ribbons, ribbon bars, emblems, rosettes, miniature facsimiles, plaques, citations, or other suitable devices or insignia) for individual acts or service
in the merchant marine of the United States.
The design may be similar to the design of a
decoration or medal authorized for members of
the armed forces for similar acts or service.
(b) SPECIFIC AUTHORITY.—The Secretary may
award—
(1) a Merchant Marine Distinguished Service
Medal to an individual for outstanding acts,
conduct, or valor beyond the line of duty;
(2) a Merchant Marine Meritorious Service
Medal to an individual for meritorious acts,
conduct, or valor in the line of duty, but not
of the outstanding character that would warrant the award of the Merchant Marine Distinguished Service Medal;
(3) a decoration or medal to an individual for
service during a war, national emergency proclaimed by the President or Congress, or operations by the armed forces outside the continental United States under conditions of
danger to life and property; and
(4) a decoration or medal to an individual for
other acts or service of conspicuous gallantry,
intrepidity, and extraordinary heroism under
1 So

in original. Probably should be followed by a period.

Page 295

§ 51907

TITLE 46—SHIPPING

conditions of danger to life and property that
would warrant a similar decoration or medal
for a member of the armed forces.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1584.)

HISTORICAL AND REVISION NOTES
Revised
Section
51904 ..........

Source (U.S. Code)
46 App.:2004(b).

Source (Statutes at Large)
Pub. L. 100–324, § 5(b), May
30, 1988, 102 Stat. 577.

HISTORICAL AND REVISION NOTES
Revised
Section

§ 51905. Flags and grave markers
Source (U.S. Code)

51901(a) ......

46 App.:2001.

51901(b) ......

46 App.:2004(d).
46 App.:2002.

Source (Statutes at Large)
Pub. L. 100–324, §§ 2, 3, 5(d),
May 30, 1988, 102 Stat. 576,
577.

§ 51902. Gallant Ship Award
(a) AWARDS TO VESSELS.—The Secretary of
Transportation may award a Gallant Ship
Award and a citation to a vessel (including a
foreign vessel) participating in outstanding or
gallant action in a marine disaster or other
emergency to save life or property at sea. The
Secretary may award a plaque to the vessel, and
a replica of the plaque may be preserved as a
permanent historical record.
(b) AWARDS TO CREWS.—The Secretary of
Transportation may award an appropriate citation ribbon bar to the master and each individual serving, at the time of the action, on a vessel issued an award under subsection (a).
(c) CONSULTATION.—The Secretary of Transportation shall consult with the Secretary of State
before awarding an award or citation to a foreign vessel or its crew under this section.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1584.)
HISTORICAL AND REVISION NOTES
Revised
Section
51902 ..........

Source (U.S. Code)
46 App.:2003.

Source (Statutes at Large)
Pub. L. 100–324, § 4, May 30,
1988, 102 Stat. 576.

In subsection (a), the words ‘‘a vessel (including a foreign vessel)’’ are substituted for ‘‘a United States vessel or to a foreign-flag vessel’’ to eliminate unnecessary words.

Except as authorized under another law, the
Secretary of Transportation may issue, at no
cost, a flag of the United States and a grave
marker to the family or personal representative
of a deceased individual who served in the merchant marine of the United States in support of
the armed forces of the United States or its allies during a war or national emergency.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1585.)
HISTORICAL AND REVISION NOTES
Revised
Section
51905 ..........

Source (U.S. Code)
46 App.:2005.

Source (Statutes at Large)
Pub. L. 100–324, § 6, May 30,
1988, 102 Stat. 577.

§ 51906. Special certificates for civilian service to
armed forces
(a) GENERAL AUTHORITY.—The Maritime Administrator may issue a special certificate to an
individual, or the personal representative of an
individual, in recognition of service of that individual in the merchant marine of the United
States, if the service has been determined to be
active duty under section 401 of the GI Bill Improvement Act of 1977 (Public Law 95–202; 38
U.S.C. 106 note).
(b) RELATIONSHIP TO OTHER LAWS.—Issuance of
a certificate under subsection (a) does not entitle an individual to any rights, privileges, or
benefits under a law of the United States.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1585.)
HISTORICAL AND REVISION NOTES
Revised
Section
51906 ..........

Source (U.S. Code)
46 App.:2006.

Source (Statutes at Large)
Pub. L. 100–324, § 7, May 30,
1988, 102 Stat. 577.

§ 51903. Multiple awards
An individual may not be awarded more than
one of any type of decoration or medal under
this chapter. For each succeeding act or service
justifying the same decoration or medal, a suitable device may be awarded to be worn with the
decoration or medal.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1585.)
HISTORICAL AND REVISION NOTES
Revised
Section
51903 ..........

Source (U.S. Code)
46 App.:2004(a).

Source (Statutes at Large)
Pub. L. 100–324, § 5(a), May
30, 1988, 102 Stat. 576.

§ 51907. Provision of decorations, medals, and replacements
The Secretary of Transportation may provide—
(1) the decorations and medals authorized by
this chapter and replacements for those decorations and medals; and
(2) replacements for decorations and medals
issued under a prior law.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1585;
Pub. L. 109–163, div. C, title XXXV, § 3510, Jan. 6,
2006, 119 Stat. 3557; Pub. L. 110–181, div. C, title
XXXV, § 3523(a)(5)(A), (b), Jan. 28, 2008, 122 Stat.
599, 600.)

§ 51904. Presentation to representatives
If an individual to be issued an award under
this chapter is unable to accept the award personally, the Secretary of Transportation may
present the award to an appropriate representative.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1585.)

HISTORICAL AND REVISION NOTES
Revised
Section
51907 ..........

Source (U.S. Code)
46 App.:2004(c).

Source (Statutes at Large)
Pub. L. 100–324, § 5(c), May
30, 1988, 102 Stat. 577.

The Secretary’s authority to provide decorations and
medals at cost, or to authorize the sale of decorations

§ 51908

TITLE 46—SHIPPING

and medals at reasonable prices, is restated to apply
only to replacement awards because Congress probably
did not intend that recipients being honored would pay
for their decorations and medals.
AMENDMENTS
2008—Pub. L. 110–181, § 3523(b), repealed Pub. L.
109–163, § 3510. See 2006 Amendment note below.
Pub. L. 110–181, § 3523(a)(5)(A), incorporated the substance of the amendment by Pub. L. 109–163, § 3510, into
this section by amending section catchline and text
generally. Prior to amendment, text read as follows:
‘‘The Secretary of Transportation may—
‘‘(1) authorize private persons to manufacture decorations and medals authorized under this chapter or
a prior law; and
‘‘(2) provide at cost, or authorize private persons to
sell at reasonable prices, replacements for those decorations and medals.’’
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3510, which directed the
amendment of section 2004(c) of the former Appendix to
this title from which this section was derived, was repealed by Pub. L. 110–181, § 3523(b). See 2008 Amendment
notes and Historical and Revision notes above.

§ 51908. Prohibition against unauthorized manufacture, sale, possession, or display of awards
(a) PROHIBITION.—Except as authorized by this
chapter or the Secretary of Transportation, a
person may not manufacture, sell, possess, or
display a decoration or medal provided for in
this chapter.
(b) CIVIL PENALTY.—A person violating this
section is liable to the United States Government for a civil penalty of not more than $2,000.
(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1585;
Pub. L. 109–364, div. C, title XXXV, § 3510(b), Oct.
17, 2006, 120 Stat. 2520; Pub. L. 110–181, div. C,
title XXXV, § 3526(e), (g), Jan. 28, 2008, 122 Stat.
602.)

§ 52101. Reemployment rights for certain merchant seamen
(a) IN GENERAL.—An individual who is certified by the Secretary of Transportation under
subsection (c) shall be entitled to reemployment
rights and other benefits substantially equivalent to the rights and benefits provided for by
chapter 43 of title 38 for any member of a reserve
component of the armed forces of the United
States who is ordered to active duty.
(b) TIME FOR APPLICATION.—An individual may
submit an application for certification under
subsection (c) to the Secretary not later than 45
days after the date the individual completes a
period of employment described in subsection
(c)(1)(A) with respect to which the application is
submitted.
(c) CERTIFICATION DETERMINATION.—Not later
than 20 days after the date the Secretary receives from an individual an application for certification under this subsection, the Secretary
shall—
(1) determine whether the individual—
(A) was employed in the activation or operation of a vessel—
(i) in the National Defense Reserve Fleet
maintained under section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C.
1744) in a period in which the vessel was in
use or being activated for use under subsection (b) of that section;
(ii) requisitioned or purchased under
chapter 563 of this title; or
(iii) owned, chartered, or controlled by
the United States Government and used by
the Government for a war, armed conflict,
national emergency, or maritime mobilization need (including for training purposes
or testing for readiness and suitability for
mission performance); and
(B) during the period of that employment,
possessed a valid license, certificate of registry, or merchant mariner’s document issued under chapter 71 or 73 of this title; and

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

51908 ..........

46 App.:2007.

Source (Statutes at Large)
Pub. L. 100–324, § 8, May 30,
1988, 102 Stat. 577.

In subsection (b), the words ‘‘not more than’’ are
added for clarity and for consistency in the revised
title.
AMENDMENTS
2008—Pub. L. 110–181, § 3526(g), repealed Pub. L.
109–364, § 3510(b). See 2006 Amendment note below.
Subsec. (a). Pub. L. 110–181, § 3526(e), incorporated the
substance of the amendment by Pub. L. 109–364,
§ 3510(b), into this section by substituting ‘‘by this
chapter or the Secretary of Transportation’’ for ‘‘under
this chapter’’. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.
2006—Pub. L. 109–364, § 3510(b), which directed the
amendment of section 2007 of the former Appendix to
this title from which this section was derived, was repealed by Pub. L. 110–181, § 3526(g). See 2008 Amendment
note for subsec. (a) and Historical and Revision notes
above.

CHAPTER 521—MISCELLANEOUS
Sec.

52101.

Reemployment rights for certain merchant
seamen.

Page 296

(2) if the Secretary makes affirmative determinations under subparagraphs (A) and (B) of
paragraph (1), certify that individual under
this subsection.
(d) EQUIVALENCE TO MILITARY SELECTIVE SERVACT CERTIFICATE.—For purposes of reemployment rights and benefits provided by this section, a certification under subsection (c) shall be
considered to be the equivalent of a certificate
described in section 9(a) of the Military Selective Service Act (50 App. U.S.C. 459(a)).
ICE

(Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1585.)
HISTORICAL AND REVISION NOTES
Revised
Section
52101 ..........

Source (U.S. Code)
46 App.:1132.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
III, § 302, as added Pub. L.
104–239, § 10(a), Oct. 8, 1996,
110 Stat. 3133.

In subsection (c)(1)(B), the words ‘‘(as applicable)’’
are omitted as unnecessary.
In subsection (d), the words ‘‘certificate described in
section 9(a) of the Military Selective Service Act (50
App. U.S.C. 459(a))’’ are substituted for ‘‘certificate re-

Page 297

TITLE 46—SHIPPING

ferred to in paragraph (1) of section 4301(a) of title 38’’
because section 4301 of title 38 was amended generally
by section 2(a) of Public Law 103–353, and before the
amendment section 4301(a)(1) referred to a certificate
described in section 9(a) of the Military Selective Service Act (50 App. U.S.C. 459(a)).

PART C—FINANCIAL ASSISTANCE PROGRAMS
AMENDMENTS
2006—Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1586,
inserted ‘‘Part C—Financial Assistance Programs’’.

CHAPTER 531—MARITIME SECURITY FLEET
Sec.

53101.
53102.
53103.
53104.
53105.
53106.
53107.
53108.
53109.
53110.
53111.

Definitions.
Establishment of Maritime Security Fleet.
Award of operating agreements.
Effectiveness of operating agreements.
Obligations and rights under operating agreements.
Payments.
National security requirements.
Regulatory relief.
Special rule regarding age of participating
fleet vessel.
Regulations.
Authorization of appropriations.

§ 53101. Definitions
In this chapter:
(1) BULK CARGO.—The term ‘‘bulk cargo’’
means cargo that is loaded and carried in bulk
without mark or count.
(2) CONTRACTOR.—The term ‘‘contractor’’
means an owner or operator of a vessel that
enters into an operating agreement for the
vessel with the Secretary under section 53103.
(3) FLEET.—The term ‘‘Fleet’’ means the
Maritime Security Fleet established under
section 53102(a).
(4) FOREIGN COMMERCE.—The term ‘‘foreign
commerce’’—
(A) subject to subparagraph (B), means—
(i) commerce or trade between the
United States, its territories or possessions, or the District of Columbia, and a
foreign country; and
(ii) commerce or trade between foreign
countries; and
(B) includes, in the case of liquid and dry
bulk cargo carrying services, trading between foreign ports in accordance with normal commercial bulk shipping practices in
such manner as will permit United Statesdocumented vessels freely to compete with
foreign-flag bulk carrying vessels in their
operation or in competing for charters, subject to rules and regulations promulgated by
the Secretary of Transportation pursuant to
this chapter or subtitle D of the Maritime
Security Act of 2003.
(5) LASH VESSEL.—The term ‘‘LASH vessel’’
means a lighter aboard ship vessel.
(6) PARTICIPATING FLEET VESSEL.—The term
‘‘participating fleet vessel’’ means any vessel
that—
(A) on October 1, 2005—
(i) meets the requirements of paragraph
(1), (2), (3), or (4) of section 53102(c); and
(ii) is less than 25 years of age, or less
than 30 years of age in the case of a LASH
vessel; and

§ 53101

(B) on December 31, 2004, is covered by an
operating agreement under subtitle B of
title VI of the Merchant Marine Act, 1936 (46
U.S.C. App. 1187 et seq.).1
(7) PERSON.—The term ‘‘person’’ includes
corporations, partnerships, and associations
existing under or authorized by the laws of the
United States, or any State, Territory, District, or possession thereof, or of any foreign
country.
(8) PRODUCT TANK VESSEL.—The term ‘‘product tank vessel’’ means a double hulled tank
vessel capable of carrying simultaneously
more than 2 separated grades of refined petroleum products.
(9) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of Transportation.
(10) TANK VESSEL.—The term ‘‘tank vessel’’
has the meaning that term has under section
2101 of this title.
(11) UNITED STATES.—The term ‘‘United
States’’ includes the District of Columbia, the
Commonwealth of Puerto Rico, the Northern
Mariana Islands, Guam, American Samoa, the
Virgin Islands.
(12) UNITED STATES CITIZEN TRUST.—(A) Subject to subparagraph (C), the term ‘‘United
States citizen trust’’ means a trust that is
qualified under this paragraph.
(B) A trust is qualified under this paragraph
with respect to a vessel only if—
(i) each of the trustees is a citizen of the
United States; and
(ii) the application for documentation of
the vessel under chapter 121 of this title includes the affidavit of each trustee stating
that the trustee is not aware of any reason
involving a beneficiary of the trust that is
not a citizen of the United States, or involving any other person that is not a citizen of
the United States, as a result of which the
beneficiary or other person would hold more
than 25 percent of the aggregate power to influence or limit the exercise of the authority
of the trustee with respect to matters involving any ownership or operation of the
vessel that may adversely affect the interests of the United States.
(C) If any person that is not a citizen of the
United States has authority to direct or participate in directing a trustee for a trust in
matters involving any ownership or operation
of the vessel that may adversely affect the interests of the United States or in removing a
trustee for a trust without cause, either directly or indirectly through the control of another person, the trust is not qualified under
this paragraph unless the trust instrument
provides that persons who are not citizens of
the United States may not hold more than 25
percent of the aggregate authority to so direct
or remove a trustee.
(D) This paragraph shall not be considered to
prohibit a person who is not a citizen of the
United States from holding more than 25 percent of the beneficial interest in a trust.
(13) UNITED STATES-DOCUMENTED VESSEL.—
The term ‘‘United States-documented vessel’’
1 See

References in Text note below.

§ 53101

TITLE 46—SHIPPING

means a vessel documented under chapter 121
of this title.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1803.)
REFERENCES IN TEXT
The Maritime Security Act of 2003, referred to in par.
(4)(B), is title XXXV of div. C of Pub. L. 108–136, Nov.
24, 2003, 117 Stat. 1788. Subtitle D of the Act amended
section 1273 of the former Appendix to this title and enacted provisions set out as a note under this section.
For complete classification of this Act to the Code, see
Short Title of 2003 Amendment note set out under section 101 of this title and Tables.
The Merchant Marine Act, 1936, referred to in par.
(6)(B), is act June 29, 1936, ch. 858, 49 Stat. 1985. Subtitle
B of title VI of the Act was classified generally to part
B (§ 1187 et seq.) of subchapter VI of chapter 27 of the
former Appendix to this title prior to repeal by Pub. L.
108–136, div. C, title XXXV, § 3534(a)(1), Nov. 24, 2003, 117
Stat. 1818. For complete classification of this Act to
the Code, see Short Title of 1936 Amendment note set
out under section 101 of this title and Tables.
EFFECTIVE DATE
Pub. L. 108–136, div. C, title XXXV, § 3537, Nov. 24,
2003, 117 Stat. 1819, provided that:
‘‘(a) IN GENERAL.—Except as provided in subsections
(b) and (c), this subtitle [subtitle C (§§ 3531–3537) of title
XXXV of div. C of Pub. L. 108–136, enacting this chapter, amending section 12102 of this title and sections 808
and 1162 of the former Appendix to this title, repealing
sections 1187 to 1187e and 1222 of the former Appendix to
this title, enacting provisions set out as a note under
section 53110 of this title, and amending provisions set
out as a note under section 53102 of this title] shall
take effect October 1, 2004.’’
‘‘(b) REPEALS AND CONFORMING AMENDMENTS.—Section 3534 [amending section 12102 of this title, repealing
sections 1187 to 1187e and 1222 of the former Appendix to
this title, and amending provisions set out as a note
under section 1187 of the former Appendix to this title]
shall take effect October 1, 2005.’’
‘‘(c) OTHER PROVISIONS.—Sections 3533 [enacting provisions set out as a note under section 53110 of this
title], 3535 [not classified to the Code], and this section
shall take effect on the date of the enactment of this
Act [Nov. 24, 2003].’’
TEMPORARY PROGRAM AUTHORIZING CONTRACTS WITH
ADJUNCT PROFESSORS AT THE UNITED STATES MERCHANT MARINE ACADEMY AND FOR OTHER PURPOSES
Pub. L. 110–417, div. C, title XXXV, § 3506(a)–(f), Oct.
14, 2008, 122 Stat. 4763, 4764, which authorized establishment of a temporary program for the purpose of contracting with not more than 25 individuals as personal
services contractors to provide services as adjunct professors at the United States Merchant Marine Academy, was repealed by Pub. L. 111–84, div. C, title XXXV,
§ 3503(b)(2), Oct. 28, 2009, 123 Stat. 2719. See section 51317
of this title.
ASSISTANCE FOR SMALL SHIPYARDS AND MARITIME
COMMUNITIES
Pub. L. 109–163, div. C, title XXXV, § 3506, Jan. 6, 2006,
119 Stat. 3553, formerly set out as a note under this section, was transferred to and renumbered as section
54101 of this title by Pub. L. 110–181, div. C, title XXXV,
§ 3523(a)(6)(B), Jan. 28, 2008, 122 Stat. 599. Later, Pub. L.
110–417, div. C, title XXXV, § 3508(b), Oct. 14, 2008, 122
Stat. 4769, directed repeal of section 3506 of Pub. L.
109–163. Pub. L. 110–417, § 3508(b), was itself amended
generally by Pub. L. 111–84, div. A, title X, § 1073(c)(14),
Oct. 28, 2009, 123 Stat. 2475, effective Oct. 14, 2008, and
as if included in Pub. L. 110–417 as enacted, and, as so
amended, Pub. L. 110–417, § 3508(b), no longer directed
the repeal of section 3506 of Pub. L. 109–163. Section 3506
of Pub. L. 109–163 was subsequently repealed by Pub. L.

Page 298

111–383, div. A, title X, § 1075(m), Jan. 7, 2011, 124 Stat.
4378.
MAINTENANCE AND REPAIR REIMBURSEMENT PILOT
PROGRAM
Pub. L. 108–136, div. C, title XXXV, § 3517, Nov. 24,
2003, 117 Stat. 1796, as amended by Pub. L. 109–163, div.
C, title XXXV, § 3503, Jan. 6, 2006, 119 Stat. 3548; Pub. L.
110–417, div. C, title XXXV, § 3505, Oct. 14, 2008, 122 Stat.
4763, provided that:
‘‘(a) AUTHORITY TO ENTER AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary of Transportation
shall carry out a pilot program under which the Secretary shall enter into an agreement with 1 or more
contractors under chapter 531 of title 46, United
States Code, regarding maintenance and repair of 1 or
more vessels that are subject to an operating agreement under that chapter.
‘‘(2) REQUIREMENT OF AGREEMENT.—The Secretary
shall, subject to the availability of appropriations,
require 1 or more persons to enter into an agreement
under this section as a condition of awarding an operating agreement to the person under chapter 531 of
title 46, United States Code, for 1 or more vessels that
normally make port calls in the United States.
‘‘(3) EXISTING OPERATING AGREEMENTS.—The Secretary of Transportation shall, subject to the availability of appropriations, seek to enter into an agreement under this section with one or more contractors
under an operating agreement under that chapter
that is in effect on the date of the enactment of this
paragraph [Oct. 14, 2008], regarding maintenance and
repair of all vessels that are subject to the operating
agreement.
‘‘(b) TERMS OF AGREEMENT.—An agreement under this
section—
‘‘(1) shall require that except as provided in subsection (c), all qualified maintenance or repair on the
vessel shall be performed in the United States;
‘‘(2) shall require that the Secretary shall reimburse the contractor in accordance with subsection
(d) for the costs of qualified maintenance or repair
performed in the United States; and
‘‘(3) shall apply to qualified maintenance or repair
performed during the 5-year period beginning on the
date the vessel begins operating under the operating
agreement under chapter 531 of title 46, United States
Code.
‘‘(c) EXCEPTION TO REQUIREMENT TO PERFORM WORK IN
THE UNITED STATES.—A contractor shall not be required to have qualified maintenance or repair work
performed in the United States under this section if—
‘‘(1) the Secretary determines that there is no facility capable of meeting all technical requirements of
the qualified maintenance or repair in the United
States located in the geographic area in which the
vessel normally operates available to perform the
work in the time required by the contractor to maintain its regularly scheduled service;
‘‘(2) the Secretary determines that there are insufficient funds to pay reimbursement under subsection
(d) with respect to the work; or
‘‘(3) the Secretary fails to make the certification
described in subsection (e)(2).
‘‘(d) REIMBURSEMENT.—
‘‘(1) IN GENERAL.—The Secretary shall, subject to
the availability of appropriations, reimburse a contractor for costs incurred by the contractor for qualified maintenance or repair performed in the United
States under this section.
‘‘(2) AMOUNT.—The amount of reimbursement shall
be equal to the difference between—
‘‘(A) the fair and reasonable cost of obtaining the
qualified maintenance or repair in the United
States; and
‘‘(B) the fair and reasonable cost of obtaining the
qualified maintenance or repair outside the United
States, in the country in which the contractor
would otherwise undertake the qualified maintenance or repair.

Page 299
‘‘(3) DETERMINATION
COSTS.—The Secretary

TITLE 46—SHIPPING
OF

FAIR

AND

REASONABLE

shall determine fair and reasonable costs for purposes of paragraph (2).
‘‘(e) NOTIFICATION REQUIREMENTS.—
‘‘(1) NOTIFICATION BY CONTRACTOR.—The Secretary
is not required to pay reimbursement to a contractor
under this section for qualified maintenance or repair, unless the contractor—
‘‘(A) notifies the Secretary of the intent of the
contractor to obtain the qualified maintenance or
repair, by not later than 90 days before the date of
the performance of the qualified maintenance or repair; and
‘‘(B) includes in such notification—
‘‘(i) a description of all qualified maintenance
or repair that the contractor should reasonably
expect may be performed;
‘‘(ii) a description of the vessel’s normal route
and port calls in the United States;
‘‘(iii) an estimate of the cost of obtaining the
qualified maintenance or repair described under
clause (i) in the United States; and
‘‘(iv) an estimate of the cost of obtaining the
qualified maintenance or repair described under
clause (i) outside the United States, in the country in which the contractor otherwise would undertake the qualified maintenance or repair.
‘‘(2) CERTIFICATION BY SECRETARY.—
‘‘(A) Not later than 30 days after the date of receipt of notification under paragraph (1), the Secretary shall certify to the contractor—
‘‘(i) whether the cost estimates provided by the
contractor are fair and reasonable;
‘‘(ii) if the Secretary determines that such cost
estimates are not fair and reasonable, the Secretary’s estimate of fair and reasonable costs for
such work;
‘‘(iii) whether there are available to the Secretary sufficient funds to pay reimbursement
under subsection (d) with respect to such work;
and
‘‘(iv) that the Secretary commits such funds to
the contractor for such reimbursement, if such
funds are available for that purpose.
‘‘(B) If the contractor notification described in
paragraph (1) does not include an estimate of the
cost of obtaining qualified maintenance and repair
in the United States, then not later than 30 days
after the date of receipt of such notification, the
Secretary shall—
‘‘(i) certify to the contractor whether there is a
facility capable of meeting all technical requirements of the qualified maintenance and repair in
the United States located in the geographic area
in which the vessel normally operates available
to perform the qualified maintenance and repair
described in the notification by the contractor
under paragraph (1) in the time period required by
the contractor to maintain its regularly scheduled service; and
‘‘(ii) if there is such a facility, require the contractor to resubmit such notification with the required cost estimate for such facility.
‘‘(f) REGULATIONS.—
‘‘(1) REQUIREMENT TO ISSUE NOTICE OF PROPOSED
RULE MAKING.—The Secretary shall—
‘‘(A) by not later than 30 days after the effective
date of this subsection [probably means effective
date of Pub. L. 109–163, Jan. 6, 2006], issue a notice
of proposed rule making to implement this section;
‘‘(B) in such notice, solicit the submission of comments by the public regarding rules to implement
this section; and
‘‘(C) provide a period of at least 30 days for the
submission of such comments.
‘‘(2) INTERIM RULES.—Upon expiration of the period
for submission of comments pursuant to paragraph
(1)(C), the Secretary may prescribe interim rules necessary to carry out the Secretary’s responsibilities
under this section. For this purpose, the Secretary is

§ 53101

excepted from compliance with the notice and comment requirements of section 553 of title 5, United
States Code. At the time interim rules are issued, the
Secretary shall solicit comments on the interim rules
from the public and other interested persons. Such
period for comment shall not be less than 90 days. All
interim rules prescribed under the authority of this
subsection that are not earlier superseded by final
rules shall expire no later than 270 days after the effective date of this subsection.
‘‘(g) QUALIFIED MAINTENANCE OR REPAIR DEFINED.—In
this section the term ‘qualified maintenance or repair’—
‘‘(1) except as provided in paragraph (2), means—
‘‘(A) any inspection of a vessel that is—
‘‘(i) required under chapter 33 of title 46, United
States Code; and
‘‘(ii) performed in the period in which the vessel
is subject to an agreement under this section;
‘‘(B) any maintenance or repair of a vessel that is
determined, in the course of an inspection referred
to in subparagraph (A), to be necessary; and
‘‘(C) any additional maintenance or repair the
contractor intends to undertake at the same time
as the work described in subparagraph (B); and
‘‘(2) does not include—
‘‘(A) maintenance or repair not agreed to by the
contractor to be undertaken at the same time as
the work described in paragraph (1); or
‘‘(B) any emergency work that is necessary to enable a vessel to return to a port in the United
States.
‘‘(h) ANNUAL REPORT.—The Secretary shall submit to
the Congress by not later than September 30 each year
a report on the program under this section. The report
shall include a listing of future inspection schedules for
all vessels included in the Maritime Security Fleet
under section 53102 of title 46, United States Code.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—In addition
to the other amounts authorized by this title [see
Short Title of 2003 Amendment note set out under section 101 of this title], for reimbursement of costs of
qualified maintenance or repair under this section
there is authorized to be appropriated to the Secretary
of Transportation $19,500,000 for each of fiscal years 2006
through 2011.’’
NATIONAL DEFENSE TANK VESSEL CONSTRUCTION
ASSISTANCE
Pub. L. 108–136, div. C, title XXXV, subtitle D, Nov.
24, 2003, 117 Stat. 1820, as amended by Pub. L. 108–375,
div. C, title XXXV, § 3503, Oct. 28, 2004, 118 Stat. 2195;
Pub. L. 109–163, div. C, title XXXV, § 3504, Jan. 6, 2006,
119 Stat. 3551; Pub. L. 109–364, div. C, title XXXV,
§ 3502(b)(2), Oct. 17, 2006, 120 Stat. 2516, provided that:
‘‘SEC. 3541. NATIONAL DEFENSE TANK VESSEL
CONSTRUCTION PROGRAM.
‘‘The Secretary of Transportation shall establish a
program for the provision of financial assistance for
the construction in the United States of a fleet of up to
5 privately owned product tank vessels—
‘‘(1) to be operated in commercial service in foreign
commerce; and
‘‘(2) to be available for national defense purposes in
time of war or national emergency pursuant to an
Emergency Preparedness Plan approved by the Secretary of Defense pursuant to section 3543(e).
‘‘SEC. 3542. APPLICATION PROCEDURE.
‘‘(a) REQUEST FOR PROPOSALS.—Within 90 days after
the date of the enactment of this subtitle [Nov. 24,
2003], and on an as-needed basis thereafter, the Secretary, in consultation with the Secretary of Defense,
shall publish in the Federal Register a request for competitive proposals for the construction of new product
tank vessels necessary to meet the commercial and national security needs of the United States and to be
built with assistance under this subtitle.
‘‘(b) QUALIFICATION.—Any citizen of the United States
or any shipyard in the United States may submit a pro-

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TITLE 46—SHIPPING

posal to the Secretary of Transportation for purposes
of constructing a product tank vessel with assistance
under this subtitle.
‘‘(c) REQUIREMENT.—The Secretary, with the concurrence of the Secretary of Defense, may enter into an
agreement with the submitter of a proposal for assistance under this subtitle if the Secretary determines
that—
‘‘(1) the plans and specifications call for construction of a new product tank vessel of not less than
35,000 deadweight tons and not greater than 60,000
deadweight tons, that—
‘‘(A) will meet the requirements of foreign commerce;
‘‘(B) is capable of carrying militarily useful petroleum products, and will be suitable for national
defense or military purposes in time of war, national emergency, or other military contingency;
and
‘‘(C) will meet the construction standards necessary to be documented under the laws of the
United States;
‘‘(2) the shipyard in which the vessel will be constructed has the necessary capacity and expertise to
successfully construct the proposed number and type
of product tank vessels in a reasonable period of time
as determined by the Secretary of Transportation,
taking into consideration the recent prior commercial shipbuilding history of the proposed shipyard in
delivering a vessel or series of vessels on time and in
accordance with the contract price and specifications; and
‘‘(3) the person proposed to be the operator of the
proposed vessel possesses the ability, experience, financial resources, and any other qualifications determined to be necessary by the Secretary for the operation and maintenance of the vessel.
‘‘(d) PRIORITY.—The Secretary—
‘‘(1) subject to paragraph (2), shall give priority
consideration to a proposal submitted by a person
that is a citizen of the United States under section 2
of the Shipping Act, 1916 ([former] 46 U.S.C. App. 802)
[see 46 U.S.C. 50501]; and
‘‘(2) may give priority to consideration of proposals
that provide the best value to the Government, taking into consideration—
‘‘(A) the costs of vessel construction;
‘‘(B) the commercial and national security needs
of the United States; and
‘‘(C) with respect to any proposal for financial assistance to be provided from amounts appropriated
for a fiscal year after fiscal year 2005, acceptance of
the vessel to be constructed with the assistance for
participation in the Shipboard Technology Evaluation Program as outlined in Navigation and Vessel
Inspection Circular 01–04, issued by the Commandant of the United States Coast Guard on January 2, 2004.
‘‘SEC. 3543. AWARD OF ASSISTANCE.
‘‘(a) IN GENERAL.—If after review of a proposal, the
Secretary determines that the proposal fulfills the requirements under this subtitle, the Secretary may
enter into a contract with the proposed purchaser and
the proposed shipyard for the construction of a product
tank vessel with assistance under this subtitle.
‘‘(b) AMOUNT OF ASSISTANCE.—The contract shall provide that the Secretary shall pay, subject to the availability of appropriations, the actual construction cost
of the vessel, but in no case more than $50,000,000 per
vessel.
‘‘(c) CONSTRUCTION IN UNITED STATES.—A contract
under this section shall require that construction of a
vessel with assistance under this subtitle shall be performed in a shipyard in the United States.
‘‘(d) DOCUMENTATION OF VESSEL.—
‘‘(1) CONTRACT REQUIREMENT.—A contract under this
section shall require that, upon delivery of a vessel
constructed with assistance under the contract, the
vessel shall be documented under chapter 121 of title

Page 300

46, United States Code, with a registry endorsement
only.
‘‘(2) RESTRICTION ON COASTWISE ENDORSEMENT.—A
vessel constructed with assistance under this subtitle
shall not be eligible for a certificate of documentation with a coastwise endorsement.
‘‘(3) AUTHORITY TO REFLAG NOT APPLICABLE.—Section 9(g) [probably should be 9(e)] of the Shipping
Act, 1916, ([former] 46 U.S.C. App. 808(g) [probably
should be 808(e)]) [now 46 U.S.C. 56101(c)] shall not
apply to a vessel constructed with assistance under
this subtitle.
‘‘(e) EMERGENCY PREPAREDNESS AGREEMENT.—
‘‘(1) IN GENERAL.—A contract under this section
shall require that the person who will be the operator
of a vessel constructed with assistance under the contract shall enter into an Emergency Preparedness
Agreement for the vessel under section 53107 of title
46, United States Code, as amended by this Act.
‘‘(2) TREATMENT AS CONTRACTOR.—For purposes of
the application, under paragraph (1), of section 53107
of title 46, United States Code, to a vessel constructed with assistance under this subtitle, the term
‘contractor’ as used in that section means the person
who will be the operator of a vessel constructed with
assistance under this subtitle.
‘‘(f) ADDITIONAL TERMS.—The Secretary shall incorporate in the contract the requirements set forth in
this subtitle, and may incorporate in the contract any
additional terms the Secretary considers necessary.
‘‘SEC. 3544. PRIORITY FOR TITLE XI ASSISTANCE.
[Amended section 1273 of the former Appendix to this
title.]
‘‘SEC. 3545. DEFINITIONS.
‘‘In this subtitle the definitions set forth in section
53101 of title 46, United States Code, as amended by this
Act, shall apply.
‘‘SEC. 3546. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to the Secretary to carry out this subtitle a total of $250,000,000
for fiscal years after fiscal year 2004.’’
SALE OF INACTIVE PASSENGER VESSELS UNDER OPERATING-DIFFERENTIAL SUBSIDY TO FOREIGN OWNERSHIP
Pub. L. 92–296, § 1, May 16, 1972, 86 Stat. 140; Pub. L.
97–31, § 12(38), Aug. 6, 1981, 95 Stat. 156, provided that:
‘‘Notwithstanding any other provision of law or of
prior contract with the United States, any vessel heretofore operated as a passenger vessel, as defined in section 613(a) of the Merchant Marine Act, 1936, as amended [act June 29, 1936, ch. 858, set out below], under an
operating-differential subsidy contract with the United
States and now in inactive or layup status, except the
steamship Independence and the steamship United
States, may be sold and transferred to foreign ownership, registry, and flag, with the prior approval of the
Secretary of Transportation. Such approval shall require (1) approval of the purchaser; (2) payment of existing debt and private obligations related to the vessel; (3) approval of the price, including terms of payment, for the sale of the vessel; (4) the seller to enter
into an agreement with the Secretary whereby an
amount equal to the net proceeds received from such
sale in excess of existing obligations and expenses incident to the sale shall within a reasonable period not to
exceed twelve months of receipt be committed and
thereafter be used as equity capital for the construction of new vessels which the Secretary determines are
built to effectuate the purposes and policy of the Merchant Marine Act, 1936, as amended [former 46 U.S.C.
App. 1101 et seq., see Disposition Table preceding section 101 of this title]; and (5) the purchaser to enter
into an agreement with the Secretary, binding upon
such purchaser and any later owner of the vessel and
running with title to the vessel, that (a) the vessel will
not carry passengers or cargo in competition, as determined by the Secretary, with any United States-flag
passenger vessel for a period of two years from the date

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the transferred vessel goes into operation; (b) the vessel
will be made available to the United States in time of
emergency and just compensation for title or use, as
the case may be, shall be paid in accordance with section 902 of the Merchant Marine Act, 1936, as amended
(46 App. U.S.C. 1242) [now 46 U.S.C. 56301 et seq.]; (c) the
purchaser will comply with such further conditions as
the Secretary may impose as authorized by sections 9,
37, and 41 of the Shipping Act, 1916, as amended
([former] 46 U.S.C. [App.] 808, 835, and 839) [see 46 U.S.C.
56101 to 56104 and 57109]; and (d) the purchaser will furnish a surety bond in an amount and with a surety satisfactory to the Secretary to secure performance of the
foregoing agreements.
‘‘In addition to any other provision such agreements
may contain for enforcement of (4) and (5) above, the
agreements therein required may be specifically enforced by decree for specific performance or injunction
in any district court of the United States. In the agreement with the Secretary the purchaser shall irrevocably appoint a corporate agent within the United
States for service of process upon such purchaser in
any action to enforce the agreement.’’
OFF-SEASON CRUISES ADDITIONAL TO VOYAGES ON
REGULAR SERVICE, ROUTE, OR LINE

§ 53101

‘‘(1) Insofar as is practicable, officers’ living quarters shall be kept separate and apart from those furnished for members of the crew;
‘‘(2) Licensed officers and unlicensed members of
the crew shall be entitled to make complaints or recommendations to the Secretary of Transportation
providing they file such complaint or recommendation directly with the Secretary of Transportation, or
with their immediate superior officer who shall be required to forward such complaint or recommendation
with his remarks to the Secretary of Transportation,
or with the authorized representatives of the respective collective bargaining agencies;
‘‘(3) Licensed officers who are members of the
United States Navy Reserve shall wear on their uniforms such special distinguishing insignia as may be
approved by the Secretary of the Navy; officers being
those men serving under licenses issued by the Bureau of Marine Inspection and Navigation or the
Coast Guard;
‘‘(4) The uniform stripes, decoration, or other insignia shall be of gold braid or woven gold or silver material, to be worn by officers, and no member of the
ship’s crew other than licensed officers shall be allowed to wear any uniform with such officer’s identifying insignia;
‘‘(5) No discrimination shall be practiced against licensed officers, who are otherwise qualified, because
of their failure to qualify as members of the United
States Navy Reserve.’’

Pub. L. 87–45, § 7, May 27, 1961, 75 Stat. 91, provided
that: ‘‘The cruises authorized by section 613 [of act
June 29, 1936, ch. 858, set out below] shall be in addition
to and not in derogation of the right of an operator to
make voyages on his regular service, route or line, including approved deviations within the general area of
his essential service. There shall be no adjustment of
subsidy in the event of such deviations if they are without prejudice to the adequacy of service.’’

Act June 29, 1936, ch. 858, title V, 49 Stat. 1995, as
amended, provided as follows:

MINIMUM MANNING, WAGE SCALES, AND WORKING
CONDITIONS ON SUBSIDIZED VESSELS

Subsidy Authorized for Vessels To Be Operated in
Foreign Trade

Act June 29, 1936, ch. 858, title III, § 301, 49 Stat. 1992;
June 23, 1938, ch. 600, §§ 5, 6, 52 Stat. 955; 1946 Reorg.
Plan No. 3, §§ 101–104, eff. July 16, 1946, 11 F.R. 7875, 60
Stat. 1097; Pub. L. 97–31, § 12(82), Aug. 6, 1981, 95 Stat.
160; Pub. L. 109–163, div. A, title V, § 515(g)(2)(A), Jan. 6,
2006, 119 Stat. 3236, provided that:
‘‘(a) The Secretary of Transportation is authorized
and directed to investigate the employment and wage
conditions in ocean-going shipping and, after making
such investigation and after appropriate hearings, to
incorporate in the contracts authorized under titles VI
and VII of this Act [former 46 U.S.C. App. 1171 et seq.,
1191 et seq., see Disposition Table preceding section 101
of this title] minimum manning scales and minimum
wage scales, and minimum working conditions for all
officers and crews employed on all types of vessels receiving an operating-differential subsidy. After such
minimum manning and wage scales, and working conditions shall have been adopted by the Secretary of
Transportation, no change shall be made therein by the
Secretary of Transportation except upon public notice
of the hearing to be had, and a hearing by the Secretary of Transportation of all interested parties, under
such rules as the Secretary of Transportation shall prescribe. The duly elected representatives of the organizations certified as the proper collective bargaining
agencies shall have the right to represent the employees who are members of their organizations at any such
hearings. Every contractor receiving an operating-differential subsidy shall post and keep posted in a conspicuous place on each such vessel operated by such
contractor a printed copy of the minimum manning
and wage scales, and working conditions prescribed by
his contract and applicable to such vessel: Provided,
however, That any increase in the operating expenses of
the subsidized vessel occasioned by any change in the
wage or manning scales or working conditions as provided in this section shall be added to the operatingdifferential subsidy previously authorized for the vessel.
‘‘(b) Every contract executed under authority of
titles VI and VII of this Act shall require—

‘‘SEC. 501. (a) Any proposed ship purchaser who is a
citizen of the United States or any shipyard of the
United States may make application to the Secretary
of Transportation for a construction-differential subsidy to aid in the construction of a new vessel to be
used in the foreign commerce of the United States. No
such application shall be approved by the Secretary of
Transportation unless he determines that (1) the plans
and specifications call for a new vessel which will meet
the requirements of the foreign commerce of the
United States, will aid in the promotion and development of such commerce, and be suitable for use by the
United States for national defense or military purposes
in time of war or national emergency; (2) if the applicant is the proposed ship purchaser, the applicant possesses the ability, experience, financial resources, and
other qualifications necessary for the operation and
maintenance of the proposed new vessel, and (3) the
granting of the aid applied for is reasonably calculated
to carry out effectively the purposes and policy of this
Act [former 46 U.S.C. App. 1101 et seq., see Disposition
Table preceding section 101 of this title]. The contract
of sale, and the mortgage given to secure the payment
of the unpaid balance of the purchase price shall not restrict the lawful or proper use or operation of the vessel except to the extent expressly required by law. The
Secretary of Transportation may give preferred consideration to applications that will tend to reduce construction-differential subsidies and that propose the
construction of ships of higher transport capability and
productivity.
‘‘(b) The Secretary of Transportation shall submit
the plans and specifications for the proposed vessel to
the Navy Department for examination thereof and suggestions for such changes therein as may be deemed
necessary or proper in order that such vessel shall be
suitable for economical and speedy conversion into a
naval or military auxiliary, or otherwise suitable for
the use of the United States Government in time of war
or national emergency. If the Secretary of the Navy approves such plans and specifications as submitted, or as
modified, in accordance with the provisions of this sub-

CONSTRUCTION-DIFFERENTIAL SUBSIDY

§ 53101

TITLE 46—SHIPPING

section, he shall certify such approval to the Secretary
of Transportation.
‘‘(c) Any citizen of the United States or any shipyard
of the United States may make application to the Secretary of Transportation for a construction-differential
subsidy to aid in reconstructing or reconditioning any
vessel that is to be used in the foreign commerce of the
United States. If the Secretary of Transportation, in
the exercise of his discretion, shall determine that the
granting of the financial aid applied for is reasonably
calculated to carry out effectively the purposes and
policy of this Act, the Secretary of Transportation may
approve such application and enter into a contract or
contracts with the applicant therefor providing for the
payment by the United States of a construction-differential subsidy that is to be ascertained, determined,
controlled, granted, and paid, subject to all the applicable conditions and limitations of this title and under
such further conditions and limitations as may be prescribed in the rules and regulations of the Secretary of
Transportation has adopted as provided in section
204(b) of this Act [former 46 U.S.C. App. 1114(b), repealed by Pub. L. 109–304, § 19, Oct. 6, 2006, 120 Stat.
1710]; but the financial aid authorized by this subsection shall be extended to reconstruction or reconditioning only in exceptional cases and after a thorough
study and a formal determination by the Secretary of
Transportation that the proposed reconstruction or reconditioning is consistent with the purposes and policy
of this Act.’’
(As amended June 23, 1938, ch. 600, § 8, 52 Stat. 955;
July 17, 1952, ch. 939, §§ 1, 2, 66 Stat. 760, 761; Pub. L.
91–469, §§ 6, 35(a), (c), (d), Oct. 21, 1970, 84 Stat. 1019, 1035;
Pub. L. 91–603, § 4(a), Dec. 31, 1970, 84 Stat. 1675; Pub. L.
97–31, § 12(84), Aug. 6, 1981, 95 Stat. 161.)
Construction of Vessels; Bids; Subsidies
‘‘SEC. 502. (a) If the Secretary of the Navy certifies
his approval under section 501(b) of this Act, and the
Secretary of Transportation approves the application,
he may secure bids for the construction of the proposed
vessel according to the approved plans and specifications. If the bid of the shipbuilder who is the lowest responsible bidder is determined by the Secretary of
Transportation to be fair and reasonable, the Secretary
of Transportation may approve such bid, and if such approved bid is accepted by the proposed ship purchaser,
the Secretary of Transportation is authorized to enter
into a contract with the successful bidder for the construction, outfitting, and equipment of the proposed
vessel, and for the payment by the Secretary of Transportation to the shipbuilder, on terms to be agreed
upon in the contract, of the contract price of the vessel, out of the construction fund hereinbefore referred
to, or out of other available funds. Notwithstanding the
provisions of the first sentence of section 505 of this
Act with respect to competitive bidding, the Secretary
of Transportation is authorized to accept a price for
the construction of the ship which has been negotiated
between a shipyard and proposed ship purchaser if (1)
the proposed ship purchaser and the shipyard submit
backup cost details and evidence that the negotiated
price is fair and reasonable; (2) the Secretary of Transportation finds that the negotiated price is fair and
reasonable; and (3) the shipyard agrees that the Comptroller General of the United States or any of his duly
authorized representatives shall, until the expiration of
three years after final payment have access to and the
right to examine any pertinent books, documents, papers, and records of the shipyard or any of its subcontractors related to the negotiation or performance
of any contract or subcontract negotiated under this
subsection and will include in its subcontracts a provision to that effect. Concurrently with entering into
such contract with the shipbuilder, the Secretary of
Transportation is authorized to enter into a contract
for the sale of such vessel upon its completion, to the
applicant if he is the proposed ship purchaser and if not
to another citizen of the United States, if the Secretary
of Transportation determines that such citizen pos-

Page 302

sesses the ability, experience, financial resources, and
other qualifications necessary for the operation and
maintenance of the vessel at a price corresponding to
the estimated cost, as determined by the Secretary of
Transportation pursuant to the provisions of this Act
[former 46 U.S.C. App. 1101 et seq., see Disposition
Table preceding section 101 of this title], of building
such vessel in a foreign shipyard.
‘‘(b) The amount of the reduction in selling price
which is herein termed ‘construction differential subsidy’ shall equal, but not exceed, the excess of the bid
of the shipbuilder constructing the proposed vessel (excluding the cost of any features incorporated in the
vessel for national defense uses, which shall be paid by
the Secretary in addition to the subsidy), over the fair
and reasonable estimate of cost, as determined by the
Secretary, of the construction of that type vessel if it
were constructed under similar plans and specifications
(excluding national defense features as above provided)
in a foreign shipbuilding center which is deemed by the
Secretary to furnish a fair and representative example
for the determination of the estimated foreign cost of
construction of vessels of the type proposed to be constructed. The Secretary of Transportation shall recompute such estimated foreign cost annually unless, in
the opinion of the Secretary, there has been a significant change in shipbuilding market conditions. The
Secretary shall publish notice of his intention to compute or recompute such estimated foreign cost and
shall give interested persons, including but not limited
to shipyards and shipowners and associations thereof,
an opportunity to file written statements. The Secretary’s consideration shall include, but not be limited
to, all relevant matter so filed, and his determination
shall include or be accompanied by a concise explanation of the basis of his determination. The construction differential approved and paid by the Secretary
shall not exceed 50 per centum of the cost of constructing, reconstructing, or reconditioning the vessel (excluding the cost of national defense features). If the
Secretary finds that the construction differential exceeds, in any case, the foregoing percentage of such
cost, the Secretary may negotiate with any bidder
(whether or not such person is the lowest bidder) and
may contract with such bidder (notwithstanding the
first sentence of section 505) for the construction, reconstruction, or reconditioning of the vessel involved
in a domestic shipyard at a cost which will reduce the
construction differential to such percentage or less. In
the event that the Secretary has reason to believe that
the bidding in any instance is collusive, he shall report
all of the evidence on which he acted (1) to the Attorney General of the United States, and (2) to the President of the Senate and to the Speaker of the House of
Representatives if the Congress shall be in session or if
the Congress shall not be in session, then to the Secretary of the Senate and Clerk of the House, respectively.
‘‘(c) In such contract of sale between the purchaser
and the Secretary of Transportation, the purchaser
shall be required to make cash payments to the Secretary of Transportation of not less than 25 per centum
of the price at which the vessel is sold to the purchaser.
The cash payments shall be made at the time and in
the same proportion as provided for the payments on
account of the construction cost in the contract between the shipbuilder and the Secretary of Transportation. The purchaser shall pay, not less frequently
than annually, interest on those portions of the Secretary of Transportation’s payments as made to the
shipbuilder which are chargeable to the purchaser’s
portion of the price of the vessel (after deduction of the
purchaser’s cash payments) at a rate not less than (i)
a rate determined by the Secretary of the Treasury,
taking into consideration the current average market
yield on outstanding marketable obligations of the
United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, plus
(ii) an allowance adequate in the judgment of the Sec-

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retary of Transportation to cover administrative costs.
The balance of such purchase price shall be paid by the
purchaser, within twenty-five years after delivery of
the vessel and in not to exceed twenty-five equal annual installments, the first of which shall be payable
one year after the delivery of the vessel by the Secretary of Transportation to the purchaser. Interest at
the rate per annum applicable to payments that are
chargeable to the purchaser’s portion of the price of the
vessel shall be paid on all such installments of the purchase price remaining unpaid.
‘‘(d) [Repealed. Pub. L. 87–877, § 2(a), Oct. 24, 1962, 76
Stat. 1200.]
‘‘(e) If no bids are received for the construction, outfitting, or equipping of such vessel, or if it appears to
the Secretary of Transportation that the bids received
from privately owned shipyards of the United States
are collusive, excessive, or unreasonable, and if a citizen of the United States agrees to purchase said vessel
as provided in this section, then, to provide employment for citizens of the United States, the Secretary of
Transportation may have such vessel constructed, outfitted, or equipped at not in excess of the actual cost
thereof in a navy yard of the United States under such
regulations as may be promulgated by the Secretary of
the Navy and the Secretary of Transportation. In such
event the Secretary of Transportation is authorized to
pay for any such vessel so constructed from his construction fund. The Secretary of Transportation is authorized to sell any vessel so constructed, outfitted, or
equipped in a navy yard to a citizen of the United
States for the fair and reasonable value thereof, but at
not less than the cost thereof less the equivalent to the
construction differential subsidy determined as provided by subsection (b), such sale to be in accordance
with all the provisions of this title.
‘‘(f) The Secretary of Transportation, with the advice
of and in coordination with the Secretary of the Navy,
shall at least once each year, as required for purposes
of this Act, survey the existing privately owned shipyards capable of merchant ship construction, or review
available data on such shipyards if deemed adequate, to
determine whether their capabilities for merchant ship
construction, including facilities and skilled personnel,
provide an adequate mobilization base at strategic
points for purposes of national defense and national
emergency. The Secretary of Transportation, in connection with ship construction, reconstruction, reconditioning, or remodeling under titles V and VII [former
46 U.S.C. App. 1191 et seq., see Disposition Table preceding section 101 of this title], upon a basis of a finding
that the award of the proposed construction, reconstruction, reconditioning, or remodeling work will remedy an existing or impending inadequacy in such mobilization base as to the capabilities and capacities of a
shipyard or shipyards at a strategic point, and after
taking into consideration the benefits accruing from
standardized construction, the conditions of unemployment, and the needs and reasonable requirements of all
shipyards, may allocate such construction, reconstruction, reconditioning, or remodeling to such yard or
yards in such manner as he may determine to be fair,
just, and reasonable to all sections of the country, subject to the provisions of this subsection. In the allocation of construction work to such yards as herein provided, the Secretary of Transportation may, after first
obtaining competitive bids for such work in compliance
with the provisions of this Act, negotiate with the bidders and with other shipbuilders concerning the terms
and conditions of any contract for such work, and is authorized to enter into such contract at a price deemed
by the Secretary of Transportation to be fair and reasonable. Any contract entered into by the Secretary of
Transportation under the provisions of this subsection
shall be subject to all of the terms and conditions of
this Act, excepting those pertaining to the awarding of
contracts to the lowest bidder which are inconsistent
with the provisions of this subsection. In the event that
a contract is made providing for a price in excess of the
lowest responsible bid which otherwise would be ac-

§ 53101

cepted, such excess shall be paid by the Secretary of
Transportation as a part of the cost of national defense, and shall not be considered as a part of the construction-differential subsidy. In the event that a contract is made providing for a price lower than the lowest responsible bid which otherwise would be accepted,
the construction-differential subsidy shall be computed
on the contract price in lieu of such bid.
‘‘If, as a result of allocation under this subsection,
the purchaser incurs expenses for inspection and supervision of the vessel during construction and for the delivery voyage of the vessel in excess of the estimated
expenses for the same services that he would have incurred if the vessel had been constructed by the lowest
responsible bidder the Secretary of Transportation
(with respect to construction under title V, except section 509) shall reimburse the purchaser for such excess,
less one-half of any gross income the purchaser receives that is allocable to the delivery voyage minus
one-half of the extra expenses incurred to produce such
gross income, and such reimbursement shall not be
considered part of the construction-differential subsidy: Provided, That no interest shall be paid on any refund authorized under this Act. If the vessel is constructed under section 509 the Secretary of Transportation shall reduce the price of the vessel by such excess, less one-half of any gross income (minus one-half
of the extra expenses incurred to produce such gross income) the purchaser receives that is allocable to the
delivery voyage. In the case of a vessel that is not to
receive operating-differential subsidy, the delivery voyage shall be deemed terminated at the port where the
vessel begins loading. In the case of a vessel that is to
receive operating-differential subsidy, the delivery voyage shall be deemed terminated when the vessel begins
loading at a United States port in an essential service.
In either case, however, the vessel owner shall not be
compensated for excess vessel delivery costs in an
amount greater than the expenses that would have
been incurred in delivering the vessel from the shipyard at which it was built to the shipyard of the lowest
responsible bidder. If as a result of such allocation, the
expenses the purchaser incurs with respect to such
services are less than the expenses he would have incurred for such services if the vessel had been constructed by the lowest responsible bidder, the purchaser shall pay to the Secretary of Transportation an
amount equal to such reduction and, if the vessel was
built with the aid of construction-differential subsidy,
such payment shall not be considered a reduction of the
construction-differential subsidy.
‘‘(g) Upon the application of any citizen of the United
States to purchase any vessel acquired by the Secretary of Transportation under the provisions of section 215 [former 46 U.S.C. App. 1125, see 46 U.S.C. 57105],
the Secretary of Transportation is authorized to sell
such vessel to the applicant for the fair and reasonable
value thereof, but at not less than the cost thereof to
the Secretary of Transportation less depreciation at
the rate of 4 per centum per annum from the date of
completion, excluding the cost of national-defense features added by the Secretary of Transportation, less
the equivalent of any applicable construction-differential subsidy as provided by subsection (b), such sale to
be in accordance with all the provisions of this title.
Such vessel shall thereupon be eligible for an operating-differential subsidy under title VI of this Act
[former 46 U.S.C. App. 1171 et seq., see Disposition
Table preceding section 101 of this title], notwithstanding the provisions of section 601(a)(1), and section 610(1)
[set out below], or any other provision of law.
‘‘(h) The Secretary of Transportation is authorized to
construct, purchase, lease, acquire, store, maintain,
sell, or otherwise dispose of national defense features
intended for installation on vessels. The Secretary of
Transportation is authorized to install or remove such
national defense features on any vessel (1) which is in
the National Defense Reserve Fleet as defined by section 11(a) of the Merchant Ship Sales Act of 1946 [50
U.S.C. App. 1744(a)], (2) which is requisitioned, pur-

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chased, or chartered under section 902 of the Merchant
Marine Act, 1936 [former 46 U.S.C. App. 1242, now 46
U.S.C. 56301 et seq.], (3) which serves as security for the
guarantee of an obligation by the Secretary of Transportation under title XI of this Act [former 46 U.S.C.
App. 1271 et seq., see 46 U.S.C. 53701 et seq.], or (4) which
is the subject of an agreement between the owner of
such vessel and the Secretary of Transportation to install or remove such national defense features. Title to
such national defense features which the Secretary of
Transportation determines are not to be permanently
incorporated in a vessel shall not be affected by such
installation or removal unless otherwise transferred in
accordance with the provisions of this title V.
‘‘(i) The Secretary of Transportation shall submit the
plans and specifications for such national defense features and the proposals for their acquisition, storage,
utilization, or disposition to the Navy Department for
examination thereof and suggestion for such changes
therein as may be deemed necessary or proper in order
that such features shall be suitable for the use of the
United States Government in time of war or national
emergency. If the Secretary of the Navy approves such
plans, specifications, or proposals as submitted, or as
modified in accordance with the provisions of this subsection, he shall certify such approval to the Secretary
of Transportation.’’
(As amended June 23, 1938, ch. 600, §§ 9–14, 52 Stat.
955–957; Aug. 4, 1939, ch. 417, § 6, 53 Stat. 1183; July 26,
1956, ch. 737, 70 Stat. 657; Pub. L. 86–518, §§ 1, 2, June 12,
1960, 74 Stat. 216; Pub. L. 86–607, § 1, July 7, 1960, 74 Stat.
362; Pub. L. 87–877, §§ 1, 2(a), (e), (f), Oct. 24, 1962, 76 Stat.
1200, 1201; Pub. L. 88–370, July 11, 1964, 78 Stat. 313; Pub.
L. 88–410, § 1, Aug. 10, 1964, 78 Stat. 385; Pub. L. 89–127,
Aug. 14, 1965, 79 Stat. 519; Pub. L. 89–589, Sept. 19, 1966,
80 Stat. 811; Pub. L. 90–572, Oct. 12, 1968, 82 Stat. 1004;
Pub. L. 91–40, July 8, 1969, 83 Stat. 44; Pub. L. 91–469, §§ 7,
35(a), (e)–(g), Oct. 21, 1970, 84 Stat. 1019, 1035, 1036; Pub.
L. 91–603, § 4(b), Dec. 31, 1970, 84 Stat. 1675; Pub. L. 93–71,
July 10, 1973, 87 Stat. 169; Pub. L. 94–372, §§ 2, 3, July 31,
1976, 90 Stat. 1042; Pub. L. 96–210, Mar. 17, 1980, 94 Stat.
100; Pub. L. 96–387, § 3, Oct. 7, 1980, 94 Stat. 1545; Pub. L.
97–31, § 12(84), (85), Aug. 6, 1981, 95 Stat. 161.)
Documentation of Completed Vessel Under Laws of
United States; Delivery to Purchaser; First Mortgage to Secure Deferred Payments
‘‘SEC. 503. Upon completion of the construction of any
vessel in respect to which a construction-differential
subsidy is to be allowed under this title and its delivery
by the shipbuilder to the Secretary of Transportation,
the vessel shall be documented under the laws of the
United States, and concurrently therewith, or as soon
thereafter as practicable, the vessel shall be delivered
with a bill of sale to the purchaser with warranty
against liens, pursuant to the contract of sale between
the purchaser and the Secretary of Transportation. The
vessel shall remain documented under the laws of the
United States for not less than twenty-five years, or so
long as there remains due the United States any principal or interest on account of the purchaser price,
whichever is the longer period. At the time of delivery
of the vessel the purchaser shall execute and deliver a
first-preferred mortgage to the United States to secure
payment of any sums due from the purchaser in respect
to said vessel: Provided, That notwithstanding any
other provisions of law, the payment of any sums due
in respect to a passenger vessel purchased under section 4(b) of the Merchant Ship Sales Act of 1946 [former
50 U.S.C. App. 1737(b)], reconverted or restored for normal operation in commercial services, or in respect to
a passenger vessel purchased under title V of this Act,
which is delivered subsequent to March 8, 1946, and
which (i) is of not less than ten thousand gross tons, (ii)
has a designed speed approved by the Secretary of
Transportation but not less than eighteen knots, (iii)
has accommodations for not less than two hundred passengers, and, (iv) is approved by the Secretary of Defense as being desirable for national defense purposes,
may, with the approval of the Secretary of Transpor-

Page 304

tation be secured only by a first-preferred mortgage on
said vessel. With the approval of the Secretary of
Transportation, such preferred mortgage may provide
that the sole recourse against the purchaser of such a
passenger vessel under such mortgage, and any of the
notes secured thereby, shall be limited to repossession
of the vessel by the United States and the assignment
of insurance claims, if the purchaser shall have complied with all provisions of the mortgage other than
those relating to the payment of principal and interest
when due, and the obligation of the purchaser shall be
satisfied and discharged by the surrender of the vessel,
and all right, title, and interest therein to the United
States. Such vessel upon surrender shall be (i) free and
clear of all liens and encumbrances whatsoever, except
the lien of the preferred mortgage, (ii) in class, and (iii)
in as good order and condition, ordinary wear and tear
excepted, as when acquired by the purchaser, except
that any deficiencies with respect to freedom from encumbrances, condition, and class, may, to the extent
covered by valid policies of insurance, be satisfied by
the assignment to the United States of claims of the
purchaser under such policies of insurance. The purchaser shall also comply with all the provisions of section 9 of the Merchant Marine Act, 1920 [former 46
U.S.C. App. 868, repealed by Pub. L. 109–304, § 19, Oct. 6,
2006, 120 Stat. 1710].’’
(As amended June 23, 1938, ch. 600, § 15, 52 Stat. 957;
July 17, 1952, ch. 939, § 3, 66 Stat. 761; Pub. L. 86–518, § 1,
June 12, 1960, 74 Stat. 216; Pub. L. 91–469, §§ 8, 35(a), Oct.
21, 1970, 84 Stat. 1021, 1035; Pub. L. 97–31, § 12(84), Aug. 6,
1981, 95 Stat. 161.)
Purchase of Vessel Constructed in Accordance With
Application for Subsidy; Bid or Negotiated Price
Basis for Subsidy and Payments for Cost of National Defense Features; Documentation
‘‘SEC. 504. If a qualified purchaser under the terms of
this title desires to purchase a vessel to be constructed
in accordance with an application for construction-differential subsidy under this title, the Secretary of
Transportation may, in lieu of contracting to pay the
entire cost of the vessel under section 502, contract to
pay only construction-differential subsidy and the cost
of national defense features to the shipyard constructing such vessel. The construction-differential subsidy
and payments for the cost of national defense features
shall be based upon the lowest responsible domestic bid
unless the vessel is constructed at a negotiated price as
provided by section 502(a) or under a contract negotiated by the Secretary of Transportation as provided
in section 502(b) in which event the construction-differential subsidy and payments for the cost of national
defense features shall be based upon such negotiated
price. No construction-differential subsidy, as provided
in this section, shall be paid unless the said contract or
contracts or other arrangements contain such provisions as are provided in this title to protect the interests of the United States as the Secretary of Transportation deems necessary. Such vessel shall be documented under the laws of the United States as provided
in section 503 of this title. The contract of sale, and the
mortgage given to secure the payment of the unpaid
balance of the purchase price, shall not restrict the
lawful or proper use or operation of the vessel, except
to the extent expressly required by law.’’
(As amended June 23, 1938, ch. 600, § 16, 52 Stat. 958;
July 17, 1952, ch. 939, § 4, 66 Stat. 761; Pub. L. 91–469, §§ 9,
35(a), Oct. 21, 1970, 84 Stat. 1021, 1035; Pub. L. 97–31,
§ 12(84), Aug. 6, 1981, 95 Stat. 161.)
Eligible Shipyards; Materials; Conditions of Contracts; Limitation to American Shipyards; American Materials, Waiver; Ability of Bidders; Filing
Bids and Data
‘‘SEC. 505. All construction in respect of which a construction-differential subsidy is allowed under this
title shall be performed in a shipyard of the United
States as the result of competitive bidding, after due

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advertisement, with the right reserved in the Secretary
of Transportation to disapprove, any or all bids. In all
such construction the shipbuilder, subcontractors, materialmen, or suppliers shall use, so far as practicable,
only articles, materials, and supplies of the growth,
production, or manufacture of the United States as defined in paragraph K of section 401 of the Tariff Act of
1930 [now 19 U.S.C. 1401(h)]; Provided, however, That
with respect to other than major components of the
hull, superstructure, and any material used in the construction thereof, (1) if the Secretary of Transportation
determines that the requirements of this sentence will
unreasonably delay completion of any vessel beyond its
contract delivery date, and (2) if such determination includes or is accompanied by a concise explanation of
the basis therefor, then the Secretary of Transportation may waive such requirements to the extent necessary to prevent such delay. No shipbuilder shall be
deemed a responsible bidder unless he possesses the
ability, experience, financial resources, equipment, and
other qualifications necessary properly to perform the
proposed contract. Each bid submitted to the Secretary
of Transportation shall be accompanied by all detailed
estimates upon which it is based. The Secretary of
Transportation may require that the bids of any subcontractors, or other pertinent data, accompany such
bid. All such bids and data relating thereto shall be
kept on file until disposed of as provided by law. For
the purposes of this title V, the term ‘shipyard of the
United States’ means shipyards within any of the
United States and the Commonwealth of Puerto Rico.’’
(As amended June 23, 1938, ch. 600, §§ 17, 40(a), 52 Stat.
958, 964; Oct. 25, 1951, ch. 562, § 3(4), 65 Stat. 639; Pub. L.
86–624, § 35(a), July 12, 1960, 74 Stat. 421; Pub. L. 91–469,
§§ 10, 35(a), Oct. 21, 1970, 84 Stat. 1022, 1035; Pub. L. 97–31,
§ 12(84), Aug. 6, 1981, 95 Stat. 161.)
Operation of Subsidy Constructed Vessel Limited to
Foreign Trade; Repayments to Secretary for Deviations
‘‘SEC. 506. Every owner of a vessel for which a construction-differential subsidy has been paid shall agree
that the vessel shall be operated exclusively in foreign
trade, or on a round-the-world voyage, or on a round
voyage from the west coast of the United States to a
European port or ports which includes intercoastal
ports of the United States, or a round voyage from the
Atlantic coast of the United States to the Orient which
includes intercoastal ports of the United States, or on
a voyage in foreign trade on which the vessel may stop
at the State of Hawaii, or an island possession or island
territory of the United States, and that if the vessel is
operated in the domestic trade on any of the above-enumerated services, he will pay annually to the Secretary
of Transportation that proportion of one-twenty-fifth
of the construction-differential subsidy paid for such
vessel as the gross revenue derived from the domestic
trade bears to the gross revenue derived from the entire
voyages completed during the preceding year. The Secretary may consent in writing to the temporary transfer of such vessel to service other than the service covered by such agreement for periods not exceeding six
months in any year, whenever the Secretary may determine that such transfer is necessary or appropriate
to carry out the purposes of this Act [former 46 U.S.C.
App. 1101 et seq., see Disposition Table preceding section 101 of this title]. Such consent shall be conditioned
upon the agreement by the owner to pay to the Secretary, upon such terms and conditions as he may prescribe, an amount which bears the same proportion to
the construction-differential subsidy paid by the Secretary as such temporary period bears to the entire
economic life of the vessel. No operating-differential
subsidy shall be paid for the operation of such vessel
for such temporary period.’’
(As amended June 23, 1938, ch. 600, § 18, 52 Stat. 958;
Mar. 18, 1959, Pub. L. 86–3, § 18(b)(1), 73 Stat. 12; Pub. L.

§ 53101

86–518, § 3, June 12, 1960, 74 Stat. 216; Pub. L. 97–31,
§ 12(87), Aug. 6, 1981, 95 Stat. 161.)
Construction of New Vessel to Replace Obsolete; Purchase of Old Vessel by Secretary; Bond of Seller
Against Liens
‘‘SEC. 507. If a contract is made by the Secretary of
Transportation under authority of this title for the
construction and sale of a new vessel to replace a vessel
then operated in foreign trade or domestic trade, which
in the judgment of the Secretary of Transportation
should be replaced because it is obsolete or inadequate
for successful operation in such trade, the Secretary of
Transportation is authorized, in his discretion, to buy
such replaced vessel from the owner at a fair and reasonable valuation, which valuation shall not exceed the
cost to the owner or any former owner plus the actual
cost previously expended thereon for reconditioning,
and less a reasonable and proper depreciation, based
upon not more than twenty-five-year life of the vessel,
and apply the purchase price agreed upon to that portion of the construction cost of such new vessel which
is to be borne by the purchaser thereof: Provided, That
the owner of such replaced vessel shall execute a bond,
with one or more approved sureties, conditioned upon
indemnifying the United States from all loss resulting
from any existing lien against such vessel: And provided
further, That such vessel has been documented under
the laws of the United States for a period of at least
ten years prior to the date of its purchase by the
United States.’’
(As amended June 23, 1938, ch. 600, § 19, 52 Stat. 959;
July 17, 1952, ch. 939, § 5, 66 Stat. 761; Pub. L. 86–518, § 1,
June 12, 1960, 74 Stat. 216; Pub. L. 97–31, § 12(88), Aug. 6,
1981, 95 Stat. 161.)
Disposition of Vessels Transferred to Maritime
Administration of Department of Transportation
[Section 508 was classified to section 1158 of the
former Appendix to this title and was repealed and restated as sections 57102 and 57103 of this title by Pub.
L. 109–304, §§ 8(c), 19, Oct. 6, 2006, 120 Stat. 1586, 1710.]
Vessels To Be Operated in Domestic Trade; Terms
and Conditions of Construction Aid and Sale to
Purchaser
‘‘SEC. 509. Any citizen of the United States may make
application to the Secretary of Transportation for aid
in the construction of a new vessel to be operated in
the foreign or domestic trade (excepting vessels engaged solely in the transportation of property on inland rivers and canals exclusively). If such application
is approved by the Secretary of Transportation, the
vessel may be constructed under the terms and conditions of this title, but no construction-differential subsidy shall be allowed. The Secretary of Transportation
shall pay for the cost of national-defense features incorporated in such vessel. In case the vessel is designed
to be of not less than three thousand five hundred gross
tons and to be capable of sustained speed of not less
than ten knots, or in the case of a passenger vessel operating solely on the inland rivers and waterways
which is designed to be of not less than one thousand
gross tons and to be capable of sustained speed of not
less than eight knots, or in the case of a ferry operating solely in point-to-point transportation which is designed to be of not less than seventy-five gross tons and
to be capable of a sustained speed of not less than eight
knots, in the case of an oceangoing tug of more than
two thousand five hundred horsepower or oceangoing
barge of more than two thousand five hundred gross
tons, or in the case of a vessel of more than two thousand five hundred horsepower designed to be capable of
sustained speed of not less than forty knots, the purchaser shall be required to pay the Secretary of Transportation not less than 121⁄2 per centum of the cost of
such vessel, and in the case of any other vessel the purchaser shall be required to pay the Secretary of Transportation not less than 25 per centum of the cost of

§ 53101

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such vessel (excluding from such cost, in either case,
the cost of national defense features); and the balance
of such purchase price shall be paid by the purchaser
within twenty-five years in not to exceed twenty-five
equal annual installments, with interest at a rate not
less than (i) a rate determined by the Secretary of the
Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to
maturity comparable to the average maturities of such
loans, adjusted to the nearest one-eighth of 1 per centum, plus (ii) an allowance adequate in the judgment of
the Secretary of Transportation to cover administrative costs, the balance of such purchase price being secured by a preferred mortgage on the vessel sold and
otherwise secured as the Secretary of Transportation
may determine: Provided, That, notwithstanding any
other provisions of law, the balance of the purchase
price of a passenger vessel constructed under this section which is delivered subsequent to March 8, 1946, and
which has the tonnage, speed, passenger accommodations, and other characteristics set forth in section 503
of this Act, may, with the approval of the Secretary of
Transportation, be secured as provided in such section,
and the obligation of the purchaser of such a vessel
shall be satisfied and discharged as provided in such
section.’’
(As amended June 23, 1938, ch. 600, § 20, 52 Stat. 959;
June 6, 1939, ch. 186, 53 Stat. 810; July 17, 1952, ch. 939,
§ 6, 66 Stat. 761; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat.
216; Pub. L. 87–877, § 2(b), Oct. 24, 1962, 76 Stat. 1200; Pub.
L. 90–183, Dec. 10, 1967, 81 Stat. 559; Pub. L. 90–214, Dec.
18, 1967, 81 Stat. 660; Pub. L. 91–469, § 11, Oct. 21, 1970, 84
Stat. 1022; Pub. L. 92–374, Aug. 10, 1972, 86 Stat. 528; Pub.
L. 95–173, § 8, Nov. 12, 1977, 91 Stat. 1360; Pub. L. 95–505,
Oct. 24, 1978, 92 Stat. 1755; Pub. L. 97–31, § 12(90), Aug. 6,
1981, 95 Stat. 161.)
Acquisition of Obsolete Vessels
[Section 510 was classified to section 1160 of the
former Appendix to this title and was primarily repealed and restated in subtitle V of this title by Pub.
L. 109–304, §§ 8(b), (c), 19, Oct. 6, 2006, 120 Stat. 1556, 1586,
1710. For disposition of sections of the former Appendix
to this title, see Disposition Table preceding section 101
of this title.]
Reserve Funds for Construction or Acquisition of
Vessels; Taxation
[Section 511 was classified to section 1161 of the
former Appendix to this title and was primarily repealed and restated as chapter 533 of this title by Pub.
L. 109–304, §§ 8(c), 19, Oct. 6, 2006, 120 Stat. 1586, 1710. For
disposition of sections of the former Appendix to this
title, see Disposition Table preceding section 101 of this
title.]

Page 306

[Title V of act June 29, 1936, ch. 858, comprising this
note, consisted of sections 501 to 512 which were classified to sections 1151 to 1162, respectively, of the former
Appendix to this title, prior to the enactment of Pub.
L. 109–304 and elimination of that Appendix. For complete disposition of those sections, see Disposition
Table preceding section 101 of this title.]
[Pub. L. 87–877, § 5, Oct. 24, 1962, 76 Stat. 1202, provided
that: ‘‘The amendment made by the first section of this
Act [amending section 502 of act June 29, 1936, ch. 858,
set out above] shall be effective only with respect to
contracts entered into with respect to (a) the construction of a vessel the keel of which was laid after June
30, 1959, or (b) the reconstruction or reconditioning of
a vessel the shipyard contract for which was entered
into after June 30, 1959, and the Secretary may, with
the consent of the parties thereto, modify any such
contract entered into prior to the date of the enactment of this Act [Oct. 24, 1962] to the extent authorized
by the amendment made by this Act.’’]
[Pub. L. 86–607, § 2, July 7, 1960, 74 Stat. 362, as amended by Pub. L. 87–222, Sept. 13, 1961, 75 Stat. 494, provided
that: ‘‘The amendment made by this Act [amending
section 502 of act June 29, 1936, ch. 858, set out above]
shall be effective only with respect to any contract entered into not later than two years after the date of enactment of this Act [July 7, 1960] under the provisions
of section 502 of the Merchant Marine Act, 1936 [act
June 29, 1936, ch. 858], with respect to (a) the construction of a vessel the keel of which was laid, or (b) the reconstruction or reconditioning of a vessel the shipyard
contract for which was entered into after June 30, 1959,
and the Federal Maritime Board may, with the consent
of the parties thereto, modify any such contract entered into prior to the date of enactment of the first
amendment to Public Law 86–607 (74 Stat. 362) [Sept. 13,
1961], to the extent authorized by the amendment made
by this Act, as amended.’’]
[Pub. L. 86–518, § 8(a), June 12, 1960, 74 Stat. 216, provided that: ‘‘The amendments made by this Act
[amending sections 502, 503, 506, 507, 509, 605, and 611 of
act June 29, 1936, ch. 858, set out above and below] shall
apply only to vessels delivered by the shipbuilder on or
after January 1, 1946, and with respect to such vessels
shall become effective on January 1, 1960. With respect
to vessels delivered by the shipbuilder before January
1, 1946, the provisions of the Merchant Marine Act, 1936
[act June 29, 1936, ch. 858, see Tables for classification],
existing immediately before the date of enactment of
this Act [June 12, 1960] shall continue in effect.’’]
OPERATING-DIFFERENTIAL SUBSIDY
Act June 29, 1936, ch. 858, title VI, 49 Stat. 2001, as
amended, provided as follows:
Subtitle A—Operating-Differential Subsidy Program

Limitation on Restrictions

Subsidy Authorized for Operation of Vessels in
Foreign Trade or in Off-Season Cruises

‘‘SEC. 512. (a) Except as provided in subsection (b),
notwithstanding any other provision of law or contract, all restrictions and requirements under sections
503, 506, and 802 [set out below] applicable to a liner vessel constructed, reconstructed, or reconditioned with
the aid of construction-differential subsidy shall terminate upon the expiration of the 25-year period beginning on the date of the original delivery of the vessel
from the shipyard.
‘‘(b)(1) Except as provided in paragraph (2), the restrictions and requirements of section 506 shall terminate upon the expiration of the 20-year period beginning on the date of the original delivery of the vessel
from the shipyard for operation of a vessel in any domestic trade in which it has operated at any time since
1996.
‘‘(2) Paragraph (1) shall not affect any requirement to
make payments under section 506.’’
(As added Pub. L. 104–239, § 7, Oct. 8, 1996, 110 Stat.
3133; amended Pub. L. 108–136, div. C, title XXXV,
§ 3532(b), Nov. 24, 2003, 117 Stat. 1818.)

‘‘SEC. 601. (a) The Secretary of Transportation is authorized and directed to consider the application of any
citizen of the United States for financial aid in the operation of a vessel or vessels, which are to be used in
an essential service in the foreign commerce of the
United States or in such service and in cruises authorized under section 613 of this title. In this title VI the
term ‘essential service’ means the operation of a vessel
on a service, route, or line described in section 211(a)
[now 46 U.S.C. 50103(a)(1)] or in bulk cargo carrying
service described in section 211(b) [now 46 U.S.C.
50103(b)]. No such application shall be approved by the
Secretary of Transportation unless he determines that
(1) the operation of such vessel or vessels in an essential service is required to meet foreign-flag competition
and to promote the foreign commerce of the United
States except to the extent such vessels are to be operated on cruises authorized under section 613 of this
title, and that such vessel or vessels were built in the
United States, or have been documented under the laws
of the United States not later than February 1, 1928, or

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actually ordered and under construction for the account of citizens of the United States prior to such
date; (2) the applicant owns, or leases or can and will
build or purchase, or lease, a vessel or vessels of the
size, type, speed, and number, and with the proper
equipment required to enable him to operate in an essential service, in such manner as may be necessary to
meet competitive conditions, and to promote foreign
commerce; (3) the applicant possesses the ability, experience, financial resources, and other qualifications
necessary to enable him to conduct the proposed operations of the vessel or vessels as to meet competitive
conditions and promote foreign commerce; (4) the
granting of the aid applied for is necessary to place the
proposed operations of the vessel or vessels on a parity
with those of foreign competitors, and is reasonably
calculated to carry out effectively the purposes and
policy of this Act [former 46 U.S.C. App. 1101 et seq., see
Disposition Table preceding section 101 of this title].
To the extent the application covers cruises, as authorized under section 613 of this title, the Secretary of
Transportation may make the portion of this last determination relating to parity on the basis that any
foreign flag cruise from the United States competes
with any American flag cruise from the United States.
‘‘(b) Every application for an operating-differential
subsidy under the provisions of this title shall be accompanied by statements disclosing the names of all
persons having any pecuniary interest, direct or indirect, in such application, or in the ownership or use of
the vessel or vessels, routes, or lines covered thereby,
and the nature and extent of any such interest, together with such financial and other statements as
may be required by the Secretary of Transportation.
All such statements shall be under oath or affirmation
and in such form as the Secretary of Transportation
shall prescribe. Any person who, in an application for
financial aid under this title or in any statement required to be filed therewith, willfully makes any untrue statement of a material fact, shall be guilty of a
misdemeanor.’’
(As amended Pub. L. 87–45, § 2, May 27, 1961, 75 Stat.
90; Pub. L. 91–469, §§ 14, 35(a), (h), Oct. 21, 1970, 84 Stat.
1023, 1035, 1036; Pub. L. 91–603, § 4(c), (d), Dec. 31, 1970, 84
Stat. 1675; Pub. L. 97–31, § 12(93), Aug. 6, 1981, 95 Stat.
161.)
Determination of Necessity of Subsidy To Meet
Competition
‘‘SEC. 602. Except with respect to cruises authorized
under section 613 of this title, no contract for an operating-differential subsidy shall be made by the Secretary of Transportation for the operation of a vessel
or vessels to meet foreign competition, except direct
foreign-flag competition, until and unless the Secretary of Transportation, after a full and complete investigation and hearing, shall determine that an operating-differential subsidy is necessary to meet competition of foreign-flag ships.’’
(As amended June 23, 1938, ch. 600, § 40(b), 52 Stat. 964;
Pub. L. 87–45, § 3, May 27, 1961, 75 Stat. 91; Pub. L. 91–469,
§ 35(a), Oct. 21, 1970, 84 Stat. 1035; Pub. L. 97–31, § 12(94),
Aug. 6, 1981, 95 Stat. 161.)
Contracts for Payment of Subsidy
‘‘SEC. 603. (a) If the Secretary of Transportation approves the application, he may enter into a contract
with the applicant for the payment of an operating-differential subsidy determined in accordance with the
provisions of subsection (b) of this section, for the operation of such vessel or vessels in an essential service
and in cruises authorized under section 613 of this title
for a period not exceeding twenty years, and subject to
such reasonable terms and conditions, consistent with
this Act [former 46 U.S.C. App. 1101 et seq., see Disposition Table preceding section 101 of this title], as the
Secretary of Transportation shall require to effectuate
the purposes and policy of this Act, including a performance bond with approved sureties, if such bond is
required by the Secretary of Transportation.

§ 53101

‘‘(b) Such contract shall provide, except as the parties should agree upon a lesser amount, that the
amount of the operating-differential subsidy for the operation of vessels in an essential service shall equal the
excess of the subsidizable wage costs of the United
States officers and crews, the fair and reasonable cost
of insurance, subsistence of officers and crews on passenger vessels, as defined in section 613 of this Act,
maintenance, and repairs not compensated by insurance, incurred in the operation under United States
registry of the vessel or vessels covered by the contract, over the estimated fair and reasonable cost of
the same items of expense (after deducting therefrom
any estimated increase in such items necessitated by
features incorporated pursuant to the provisions of section 501(b) [set out above]) if such vessel or vessels were
operated under the registry of a foreign country whose
vessels are substantial competitors of the vessel or vessels covered by the contract: Provided, however, That
the Secretary of Transportation may, with respect to
any vessel in an essential bulk cargo carrying service
as described in section 211(b) [now 46 U.S.C. 50103(b)],
pay, in lieu of the operating-differential subsidy provided by this subsection (b), such sums as he shall determine to be necessary to make the cost of operating
such vessel competitive with the cost of operating
similar vessels under the registry of a foreign country.
For any period during which a vessel cruises as authorized by section 613 of this Act, operating-differential
subsidy shall be computed as though the vessel were
operating on the essential service to which the vessel is
assigned: Provided, however, That if the cruise vessel
calls at a port or ports outside of its assigned service,
but which is served with passenger vessels (as defined
in section 613 of this Act) by another subsidized operator at an operating-differential subsidy rate for wages
lower than the cruise vessel has on its assigned essential service, the operating-differential subsidy rates for
each of the subsidizable items for each day (a fraction
of a day to count as a day) that the vessel stops at such
port shall be at the respective rates applicable to the
subsidized operator regularly serving the area.
‘‘(c)(1) When used in this section—
‘‘(A) The term ‘collective bargaining costs’ means the
annual cost, calculated on the basis of the per diem
rate of expense as of any date, of all items of expense
required of the applicant through collective bargaining
or other agreement, covering the employ of United
States officers and crew of a vessel, including payments
required by law to assure old-age pensions, unemployment benefits, or similar benefits and taxes or other
governmental assessments on crew payrolls, but excluding subsistence of officers and crews on vessels
other than passenger vessels as defined in section 613 of
this Act and costs relating to:
‘‘(i) the officers or members of the crew that the
Secretary of Transportation has found, prior to the
award of a contract for the construction or reconstruction of a vessel, to be unnecessary for the efficient and economical operation of such vessel: Provided, That the Secretary of Transportation shall afford representatives of the collective-bargaining unit
or units responsible for the manning of the vessel an
opportunity to comment on such finding prior to the
effective date of such finding: And provided further,
That in determining whether officers or members of
the crew are necessary for the efficient and economical operation of such vessel, the Secretary of Transportation shall give due consideration to, but shall
not be bound by, wage and manning scales and working conditions required by a bona fide collective-bargaining agreement, or
‘‘(ii) those officers or members of the crew that the
Secretary of Transportation has found, prior to ninety days following the date of enactment of this subsection [Oct. 21, 1970], to be unnecessary for the efficient and economical operation of the vessel.
‘‘(B) The term ‘base period costs’ means for the base
period beginning July 1, 1970, and ending June 30, 1971,
the collective-bargaining costs as of January 1, 1971,

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less all other items of cost that have been disallowed
by the Secretary of Transportation prior to ninety days
following the date of enactment of this subsection [Oct.
21, 1970], and not already excluded from collective-bargaining costs under subparagraph (A)(i) or (A)(ii) of
this subsection. In any subsequent base period the term
‘base period costs’ means the average of the
subsidizable wage cost of United States officers and
crews for the preceding annual period ending June 30
(calculated without regard to the limitation of the last
sentence of paragraph (D) of this subdivision but increased or decreased by the increase or decrease in the
index described in subdivision (3) of this subsection
from January 1 of such annual period to January 1 of
the base period), and the collective-bargaining costs as
of January 1 of the base period: Provided, That in no
event shall the base period cost be such that the difference between the base period cost and the collectivebargaining costs as of January 1 of any base period subsequent to the first base period exceeds five-fourths of
1 per centum of the collective-bargaining costs as of
such January 1 multiplied by the number of years that
have elapsed since the most recent base period.
‘‘(C) The term ‘base period’ means any annual period
beginning July 1, and ending June 30 with respect to
which a base period cost is established.
‘‘(D) The term ‘subsidizable wage costs of United
States officers and crews’ in any period other than a
base period means the most recent base period costs increased or decreased by the increase or decrease from
January 1 of such base period to January 1 of such period in the index described in subdivision (3) hereof, and
with respect to a base period means the base period
cost. The subsidizable wage costs of United States officers and crews in any period other than a base period
shall not be less than 90 per centum of the collectivebargaining costs as of January 1 of such period nor
greater than 110 per centum of such collective-bargaining costs.
‘‘(2) The Secretary of Transportation shall determine
the collective-bargaining costs on ships in subsidized
operation as of January 1, 1971, and as of each January
1 thereafter, and shall as of intervals of not less than
two years nor more than four years, establish a new
base period cost, except that the Secretary shall not establish a new base period unless he announces his intention to do so prior to the December 31 that would be
included in the new base period.
‘‘(3) The Bureau of Labor Statistics shall compile the
index referred to in subdivision (1). Such index shall
consist of the average annual change in wages and benefits placed into effect for employees covered by collective-bargaining agreements with equal weight to be
given to changes affecting employees in the transportation industry (excluding the offshore maritime industry) and to changes affecting employees in private nonagricultural industries other than transportation. Such
index shall be based on the materials regularly used by
the Bureau of Labor Statistics in compiling its regularly published statistical series on wage and benefit
changes arrived at through collective bargaining. Such
materials shall remain confidential and not be subject
to disclosure.
‘‘(d) Each foreign wage cost computation shall be
made after an opportunity is given to the contractor to
submit in writing and in timely fashion all relevant
data within his possession. In making the computation,
the Secretary shall consider all relevant matter so presented and all foreign wage cost data collected at his
request or on his behalf. Such foreign cost data shall be
made available to an interested contractor, unless the
Secretary shall find that disclosure of the data will prevent him from obtaining such data in the future. In determining foreign manning for purposes of this section,
the foreign manning determined for any ship type with
respect to any base period shall not be redetermined
until the beginning of a new base period.
‘‘(e) The wage subsidy shall be payable monthly for
the voyages completed during the month, upon the contractor’s certification that the subsidized vessels were

Page 308

in authorized service during the month. The Secretary
of Transportation shall prescribe procedures for the
calculation and payment of subsidy on items of expense
which are included in ‘collective-bargaining costs’ but
are not included in the daily rate because they are unpredictably timed.
‘‘(f) Ninety percent of the amount of the insurance
and maintenance and repair and subsistence of officers
and crews subsidy shall be payable monthly for the
voyages completed during the month on the basis of
the subsidy estimated to have accrued with respect to
such voyages. Any such payment shall be made only
after there has been furnished to the Secretary of
Transportation such security as he deems to be reasonable and necessary to assure refund of any overpayment. The contractor and the Secretary of Transportation shall audit the voyage accounts as soon as practicable after such payment. The remaining 10 percent
of such subsidy shall be payable after such audit.’’
(As amended Aug. 4, 1939, ch. 417, § 8, 53 Stat. 1185;
Pub. L. 87–45, § 4, May 27, 1961, 75 Stat. 91; Pub. L. 87–243,
Sept. 14, 1961, 75 Stat. 513; Pub. L. 91–469, §§ 15–17, 35(a),
(i), Oct. 21, 1970, 84 Stat. 1023, 1024, 1035, 1036; Pub. L.
97–31, § 12(94), Aug. 6, 1981, 95 Stat. 161.)
Additional Subsidy; When Authorized
‘‘SEC. 604. If in the case of any particular foreigntrade route the Secretary of Transportation shall find
after consultation with the Secretary of State, that the
subsidy provided for in this title is in any respect inadequate to offset the effect of governmental aid paid to
foreign competitors, he may grant such additional subsidy as he determines to be necessary for that purpose.’’
(As amended June 23, 1938, ch. 600, § 21, 52 Stat. 959;
Aug. 4, 1939, ch. 417, § 9, 53 Stat. 1185; Pub. L. 97–31,
§ 12(95), Aug. 6, 1981, 95 Stat. 162.)
Vessels Excluded From Subsidy
‘‘SEC. 605. (a) No operating-differential subsidy shall
be paid for the operation of any vessel on a voyage on
which it engages in coastwise or intercoastal trade:
Provided, however, That such subsidy may be paid on a
round-the-world voyage or a round voyage from the
west coast of the United States to a European port or
ports or a round voyage from the Atlantic coast to the
Orient which includes intercoastal ports of the United
States or a voyage in foreign trade on which the vessel
may stop at the State of Hawaii, or an island possession or island territory of the United States, and if the
subsidized vessel earns any gross revenue on the carriage of mail, passengers, or cargo by reason of such
coastal or intercoastal trade the subsidy payment for
the entire voyage shall be reduced by an amount which
bears the same ratio to the subsidy otherwise payable
as such gross revenue bears to the gross revenue derived from the entire voyage. No vessel operating on
the inland waterways of the United States shall be considered for the purposes of this Act [former 46 U.S.C.
App. 1101 et seq., see Disposition Table preceding section 101 of this title] to be operating in foreign trade.
‘‘(b) No operating-differential subsidy shall be paid
for the operation of a vessel after the calendar year the
vessel becomes 25 years of age, unless the Secretary of
Transportation has determined, before the date of enactment of the Maritime Security Act of 1996 [Oct. 8,
1996], that it is in the public interest to grant such financial aid for the operation of such vessel.
‘‘(c) No contract shall be made under this title with
respect to a vessel to be operated in an essential service
served by citizens of the United States which would be
in addition to the existing service, or services, unless
the Secretary of Transportation shall determine after
proper hearing of all parties that the service already
provided by vessels of United States registry is inadequate, and that in the accomplishment of the purposes
and policy of this Act additional vessels should be operated thereon; and no contract shall be made with respect to a vessel operated or to be operated in an essen-

Page 309

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TITLE 46—SHIPPING

tial service served by two or more citizens of the
United States with vessels of United States registry, if
the Secretary of Transportation shall determine the effect of such a contract would be to give undue advantage or be unduly prejudicial, as between citizens of the
United States, in the operation of vessels in such essential service unless following public hearing, due notice
of which shall be given to each operator serving such
essential service, the Secretary of Transportation shall
find that it is necessary to enter into such contract in
order to provide adequate service by vessels of United
States registry. The Secretary of Transportation in determining for the purposes of this section whether services are competitive, shall take into consideration the
type, size, and speed of the vessels employed, whether
passenger or cargo, or combination passenger and
cargo, vessels, the ports or ranges between which they
run, the character of cargo carried, and such other
facts as he may deem proper.’’
(As amended July 17, 1952, ch. 939, § 15, 66 Stat. 764;
Pub. L. 86–3, § 18(b)(2), Mar. 18, 1959, 73 Stat. 12; Pub. L.
86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 89–348,
§ 1(9), Nov. 8, 1965, 79 Stat. 1310; Pub. L. 91–469, §§ 18, 19,
26(b), 35(a), (j), Oct. 21, 1970, 84 Stat. 1025, 1026, 1034–1036;
Pub. L. 97–31, § 12(96), Aug. 6, 1981, 95 Stat. 162; Pub. L.
104–239, § 3(a), Oct. 8, 1996, 110 Stat. 3126.)

charged from any further obligation under such contract; (5) that the contractor shall conduct his operations with respect to essential services and any services authorized under section 613 of this title, covered
by his contract in an economical and efficient manner,
and (6) that whenever practicable, an operator who receives subsidy with respect to subsistence of officers
and crews shall use as such subsistence items only articles, materials, and supplies of the growth, production,
and manufacture of the United States, as defined in
section 505 herein [set out above], except when it is necessary to purchase supplies outside the United States
to enable such vessel to continue and complete her voyage, and an operator who receives subsidy with respect
to repairs shall perform such repairs within any of the
United States or the Commonwealth of Puerto Rico,
except in an emergency.’’
(As amended June 23, 1938, ch. 600, § 22, 52 Stat. 960;
July 17, 1952, ch. 939, § 16, 66 Stat. 764; May 10, 1956, ch.
247, § 1, 70 Stat. 148; Pub. L. 86–624, § 35(b), July 12, 1960,
74 Stat. 421; Pub. L. 87–45, § 5, May 27, 1961, 75 Stat. 91;
Pub. L. 91–469, §§ 20, 35(a), (k), Oct. 21, 1970, 84 Stat. 1026,
1035, 1036; Pub. L. 97–31, § 12(96), Aug. 6, 1981, 95 Stat.
162.)

Readjustments; Change in Service; Withdrawal From
Service; Payment of Excess Profits; Wages, Etc.;
American Materials

[Section 607 was classified to section 1177 of the
former Appendix to this title and was primarily repealed and restated as chapter 535 of this title by Pub.
L. 109–304, §§ 8(c), 19, Oct. 6, 2006, 120 Stat. 1586, 1710. For
disposition of sections of the former Appendix to this
title, see Disposition Table preceding section 101 of this
title.]

‘‘SEC. 606. Every contract for an operating-differential subsidy under this title shall provide (1) that the
amount of the future payments to the contractor shall
be subject to review and readjustment from time to
time, but not more frequently than once a year, at the
instance of the Secretary of Transportation or of the
contractor. If any such readjustment cannot be reached
by mutual agreement, the Secretary of Transportation,
on his own motion or on the application of the contractor, shall, after a proper hearing, determine the facts
and make such readjustment in the amount of such future payments as he may determine to be fair and reasonable and in the public interest. The testimony in
every such proceeding shall be reduced to writing and
filed in the office of the Secretary of Transportation.
His decision shall be based upon and governed by the
changes which may have occurred since the date of the
said contract, with respect to the items theretofore
considered and on which such contract was based, and
other conditions affecting shipping, and shall be promulgated in a formal order, which shall be accompanied by a report in writing in which the Secretary of
Transportation shall state his findings of fact; (2) that
the compensation to be paid under it shall be reduced,
under such terms and in such amounts as the Secretary
of Transportation shall determine, for any periods in
which the vessel or vessels are laid up; (3) that if the
Secretary of Transportation shall determine that a
change in an essential service, which is receiving an operating-differential subsidy under this title, is necessary in the accomplishment of the purposes of this
Act [former 46 U.S.C. App. 1101 et seq., see Disposition
Table preceding section 101 of this title], it may make
such change upon such readjustment of payments to
the contractor as shall be arrived at by the method prescribed in clause (1) of these conditions; (4) that if at
any time the contractor receiving an operating-differential subsidy claims that he cannot maintain and
operate his vessels in such an essential service, with a
reasonable profit upon his investment, and applies to
the Secretary of Transportation for a modification or
rescission of his contract to maintain such essential
service, and the Secretary of Transportation determines that such claim is proved the Secretary of Transportation shall modify or rescind such contract and
permit the contractor to withdraw such vessels from
such essential service upon a date fixed by the Secretary of Transportation, and upon the date of such
withdrawal the further payment of the operating differential subsidy shall cease and the contractor be dis-

Capital Construction Fund

Sale or Assignment of Contract; Consent of Secretary; Purchaser Subject to Terms of Contract;
Rescinding Contract on Transfer Without Consent
‘‘SEC. 608. No contract executed under this title or
any interest therein shall be sold, assigned, or transferred, either directly or indirectly, or through any reorganization, merger, or consolidation, nor shall any
agreement or arrangement be made by the holder
whereby the maintenance, management, or operation
of the service, route, line, vessel, or vessels is to be performed by any other person, without the written consent of the Secretary of Transportation. If he consents
to such agreement or arrangement, the agreement or
arrangement shall make provision whereby the person
undertaking such maintenance, management, or operation agrees to be bound by all of the provisions of the
contract and of this Act [former 46 U.S.C. App. 1101 et
seq., see Disposition Table preceding section 101 of this
title] applicable thereto, and the rules and regulations
prescribed pursuant to this Act. If the holder of any
such contract shall voluntarily sell such contract or
any interest therein, or make such assignment, transfer, agreement, or arrangement whereby the maintenance, management, or operation of the service, route,
line, vessel, or vessels is to be performed by any other
person, without the consent of the Secretary of Transportation, or if the operation of the service, route, line,
or vessel, shall pass out of the direct control of the
holder of such contract by reason of any voluntary or
involuntary receivership or bankruptcy proceedings,
the Secretary of Transportation shall have the right to
modify or rescind such contract, without further liability thereon by the United States, and is vested with exclusive jurisdiction to determine the purposes for
which any payments made by him under such contract
shall be expended.’’
(As amended Pub. L. 97–31, § 12(98), Aug. 6, 1981, 95
Stat. 162.)
Withholding Payment to Defaulting Contractor
‘‘SEC. 609. The Secretary of Transportation shall
withhold the payment of operating-differential subsidy
while any contractor therefor is in default in any payments due on account of construction-loan, ship-sales
mortgage notes, or any other obligation due the United

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TITLE 46—SHIPPING

States, and shall apply the amount so withheld to the
satisfaction of such debt.’’
(As amended June 23, 1938, ch. 600, § 29, 52 Stat. 961;
Pub. L. 97–31, § 12(99), Aug. 6, 1981, 95 Stat. 162.)
Vessels Eligible for Subsidy
‘‘SEC. 610. An operating-differential subsidy shall not
be paid under authority of this title on account of the
operation of any vessel which does not meet the following requirements: (1) The vessel shall be of steel or
other acceptable metal, shall be propelled by steam or
motor, shall be as nearly fireproof as practicable, shall
be built in a domestic yard or shall have been documented under the laws of the United States not later
than February 1, 1928, or actually ordered and under
construction for the account of citizens of the United
States prior to such date, and shall be documented
under the laws of the United States, during the entire
life of the subsidy contract; and (2) if the vessel shall
be constructed after June 29, 1936 it shall be either a
vessel constructed according to plans and specifications approved by the Secretary of Transportation and
the Secretary of the Navy, with particular reference to
economical conversion into an auxiliary naval vessel,
or a vessel approved by the Secretary of Transportation
and the Navy Department as otherwise useful to the
United States in time of national emergency.’’
(As amended Pub. L. 97–31, § 12(99), Aug. 6, 1981, 95
Stat. 162.)
Transfer of Vessels to Foreign Registry on Default of
United States
‘‘SEC. 611. (a) The contractor, upon compliance with
the provisions of this section, may transfer to foreign
registry the vessels covered by any operating-differential subsidy contract held by him, in the event that the
United States defaults upon such contract or cancels it
without just cause. Any contractor desiring to transfer
any such vessel to foreign registry upon such default or
cancelation shall file an application in writing with the
Secretary of Transportation setting forth its contentions with respect to the lack of just cause or lawful
grounds for such default or cancelation. The Secretary
of Transportation shall afford the contractor an opportunity for a hearing within twenty days after such contractor files written application therefor, and after the
testimony, if any, in such hearing has been reduced to
writing and filed with the Secretary of Transportation,
he shall, within a reasonable time, grant or deny the
application by order.
‘‘(b) If any such application is denied, the contractor
may obtain a review of the order of denial in the United
States Court of Appeals for the District of Columbia,
by filing in such court, within twenty days after the
entry of such order, a written petition praying that the
order of the Secretary of Transportation be set aside. A
copy of such petition shall be forthwith transmitted by
the clerk of the court to the Secretary of Transportation or any officer designated by him for that purpose, and thereupon the Secretary of Transportation
shall file in the court the record upon which the order
complained of was entered, as provided in section 2112
of title 28, United States Code. Upon the filing of such
petition such court shall have exclusive jurisdiction to
determine whether such cancelation or default was
without just cause, and to affirm or set aside such
order. The judgment and decree of the court affirming
or setting aside any such order of the Secretary of
Transportation shall be final.
‘‘(c) No transfer of vessels to foreign registry under
this section shall become effective until any indebtedness to the Government or to any citizen of the United
States, secured by such vessels, has been paid or discharged, and until after the expiration of ninety days
from the date of final determination of the application
or the appeal, if any. Within such ninety-day period the
Secretary of Transportation may (1) with the consent
of the contractor purchase the vessels at cost to the
contractor plus cost of capital improvements thereon,

Page 310

less 4 per centum annual depreciation upon such vessel,
and the actual depreciated costs of capital improvements thereon, or (2) reinstate the contract and adjust
or settle the default found by the Secretary of Transportation or the court to exist.’’
(As added June 23, 1938, ch. 600, § 30, 52 Stat. 961; and
amended Pub. L. 85–791, § 17, Aug. 28, 1958, 72 Stat. 947;
Pub. L. 86–518, § 4, June 12, 1960, 74 Stat. 216; Pub. L.
97–31, § 12(100), Aug. 6, 1981, 95 Stat. 162.)
Subordination of Secretary’s Interest to
Reconstruction Finance Corporation
[Section 612 was classified to section 1182 of the
former Appendix to this title and was repealed by Pub.
L. 101–225, title III, § 307(7), Dec. 12, 1989, 103 Stat. 1925.]
Off-Season Cruises by Passenger Vessels
‘‘SEC. 613. (a) In this section, ‘passenger vessel’ means
a vessel which (1) is of not less than ten thousand gross
tons, and (2) has accommodations for not less than one
hundred passengers.
‘‘(b) If the Secretary of Transportation finds that the
operation of any passenger vessel with respect to which
a contract for the payment of an operating-differential
subsidy has been entered into under section 603 of this
title effective before January 2, 1960, is not required for
all of each year, in order to furnish adequate service on
the service, route, or line covered by such contract, he
may amend such contract to agree to pay an operatingdifferential subsidy for operation of the vessel (1) on
such service, route, or line for some part or no part of
each year, and (2) on cruises for all or part of each year
if such specific cruise is approved by the Secretary of
Transportation under subsection (e) of this section:
Provided, however, That no such vessel may cruise for
more than seven months of each year to ports which
are regularly served by another United States-flag passenger vessel pursuant to an operating-differential subsidy contract.
‘‘(c) The Secretary of Transportation may authorize
passenger vessels under operating-differential subsidy
contracts to provide domestic service between specified
ports while the vessels are on voyages in an essential
service in the foreign commerce of the United States
without reduction of operating-differential subsidy and
the partial payback of construction-differential subsidy
for operating in the domestic trades, if he finds that
such domestic service will not result in a substantial
deviation from the service, route, or line for which operating-differential subsidy is paid and will not adversely affect service on such service, route, or line.
‘‘(d) When a vessel is being operated on cruises or has
been authorized under this section to provide domestic
passenger services while on voyages in an essential
service in foreign commerce of the United States—
‘‘(1) except as provided in subdivision (4) of this subsection, it shall carry no mail unless required by law,
or cargo except passengers’ luggage, except between
those ports between which it may carry mail and
cargo on its regular service assigned by contract;
‘‘(2) it may not carry one-way passengers between
those ports served by another United States carrier
on its regular service assigned by contract, without
the consent of such carrier, except between those
ports between which it may carry one-way passengers
on its own regular service assigned by contract;
‘‘(3) it shall stop at other domestic ports only for
the same time and the same purpose as is permitted
with respect to a foreign-flag vessel which is carrying
passengers who embarked at a domestic port, except
that a cruise may end at a different port or coast
from that where it began and may embark or disembark passengers at other domestic ports, either
when not involving transportation in the domestic
offshore trade in competition with a United Statesflag passenger vessel offering berth service therein,
or, if involving such transportation, with the consent
of such carrier: Provided, however, That nothing herein shall be construed to repeal or modify section
805(a) of this Act [now 46 U.S.C. 58101].

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‘‘(4) Any other provisions of the Merchant Marine
Act, 1936 [former 46 U.S.C. App. 1101 et seq., see Disposition Table preceding section 101 of this title] or of
the Shipping Act, 1916 [former 46 U.S.C. App. 801 et
seq., see Disposition Table preceding section 101 of
this title], to the contrary notwithstanding, with the
approval of the Secretary of Transportation, it may
carry cargo and mail between ports to the extent
such carriage is not in direct competition with a carrier offering United States-flag berth service between
those ports, or, if such carriage is in direct competition with one or more carriers offering United Statesflag berth service between such ports, with the consent of the next scheduled United States-flag carrier,
which consent shall not be unreasonably withheld in
the judgment of the Maritime Administrator.
‘‘Section 605(c) of this Act shall not apply to cruises authorized under this section. Notwithstanding the applicable provisions of sections 605(a) and 506 [set out
above] of this Act requiring the reduction of operating
differential subsidy and the partial payback of construction differential subsidy for operating in the domestic trades, such reduction of operating subsidy and
partial payback of construction subsidy under sections
605(a) and 506, respectively, shall not apply to cruises or
domestic services authorized under this section.
‘‘(e) Upon the application of any operator for approval of a specific cruise, the Secretary of Transportation, after notice to all other American flag operators who may be affected and after affording all such
operators an opportunity to submit written data, views
or arguments, with or without opportunity to present
the same orally in any manner, and after consideration
of all relevant matter presented, shall approve the proposed cruise, if he determines that the proposed cruise
will not substantially adversely affect an existing operator’s service performed with passenger vessels of
United States registry. Such approval shall not be
given more than two years in advance of the beginning
of the cruise.’’
(As added Pub. L. 87–45, § 1, May 27, 1961, 75 Stat. 89;
and amended Pub. L. 90–358, §§ 1, 2, June 22, 1968, 82
Stat. 248; Pub. L. 91–250, May 14, 1970, 84 Stat. 215; Pub.
L. 92–323, June 30, 1972, 86 Stat. 389; Pub. L. 97–31,
§ 12(102), Aug. 6, 1981, 95 Stat. 162.)
Suspension of Operating Differential Subsidy
Contracts by Operator Recipients
‘‘SEC. 614. (a) Any operator receiving operating differential subsidy funds may elect, for all or a portion
of its ships, to suspend its operating differential subsidy contract with all attendant statutory and contractual restrictions, except as to those pertaining to the
domestic intercoastal or coastwise service, including
any agreement providing for the replacement of vessels, if—
‘‘(1) the vessel is less than ten years of age;
‘‘(2) the suspension period is not less than twelve
months;
‘‘(3) the operator’s financial condition is maintained at a level acceptable to the Secretary of Commerce; and
‘‘(4) the owner agrees to pay to the Secretary, upon
such terms and conditions as he may prescribe, an
amount which bears the same proportion to the construction differential subsidy paid by the Secretary
as the portion of the suspension period during which
the vessel is operated in any preference trade from
which a subsidized vessel would otherwise be excluded
by law or contract bears to the entire economic life
of the vessel.
‘‘(b) Any operator making an election under this section is entitled to full reinstatement of the suspended
contract on request. The Secretary of Commerce may
prescribe rules and regulations consistent with the purpose of this section.’’

(As added Pub. L. 97–35, title XVI, § 1603, Aug. 13, 1981,
95 Stat. 751.)
Construction, Reconstruction, or Acquisition of Vessels Over Five Thousand Deadweight Tons in Foreign Shipyards; Preconditions
‘‘SEC. 615. (a) The Secretary of Commerce may, until
September 30, 1983, authorize an operator receiving or
applying for operating differential subsidy under this
title to construct, reconstruct, or acquire its vessels of
over five thousand deadweight tons in a foreign shipyard if the Secretary finds and certifies in writing that
such operator’s application for construction differential subsidy cannot be approved due to the unavailability of funds in the construction differential subsidy
account. Vessels constructed, reconstructed, or modified pursuant to this section shall be deemed to have
been United States built for the purposes of this title,
section 901(b) of this Act [now 46 U.S.C. 55305], and section 5(7) of the Port and Tanker Safety Act of 1978 (46
U.S.C. 391(a)(7) [391a(7)]) [now 46 U.S.C. 3704–3709]: Provided, That the provisions of section 607 of this Act
shall not apply to vessels constructed, reconstructed,
modified, or acquired pursuant to this section.
‘‘(b) The provisions of this section shall be effective
for fiscal year 1983 only if the President in his annual
budget message for that year requests at least
$100,000,000 in construction differential subsidy or proposes an alternate program that would create equivalent merchant shipbuilding activity in privately owned
United States shipyards and the Secretary reports to
Congress on the effect such action will have on the
shipyard mobilization base at least thirty days prior to
making the certification referred to in subsection (a).’’
(As added Pub. L. 97–35, title XVI, § 1610, Aug. 13, 1981,
95 Stat. 753.)
Wind-Up of Program
‘‘SEC. 616. (a) After the date of enactment of the Maritime Security Act of 1996 [Oct. 8, 1996], the Secretary of
Transportation shall not enter into any new contract
for operating-differential subsidy under this subtitle.
‘‘(b) Notwithstanding any other provision of this Act
[former 46 U.S.C. App. 1101 et seq., see Disposition
Table preceding section 101 of this title], any operating-differential subsidy contract in effect under this
title on the day before the date of enactment of the
Maritime Security Act of 1996 [Oct. 8, 1996], shall continue in effect and terminate as set forth in the contract, unless voluntarily terminated at an earlier date
by the parties (other than the United States Government) to the contract.
‘‘(c) The essential service requirements of section[s]
601(a) and 603(b), and the provisions of sections 605(c)
and 809(a) [set out as a note below], shall not apply to
the operating-differential subsidy program under this
subtitle effective upon the earlier of—
‘‘(1) the date that a payment is made, under the
Maritime Security Program established by subtitle B
[former 46 U.S.C. App. 1187 et seq.] to a contractor
under that subtitle who is not party to an operatingdifferential subsidy contract under this subtitle, with
the Secretary to cause notice of the date of such payment to be published in the Federal Register as soon
as possible; or
‘‘(2) with respect to a particular contractor under
the operating-differential subsidy program, the date
that contractor enters into a contract with the Secretary under the Maritime Security Program established by subtitle B.
‘‘(d)(1) Notwithstanding any other provision of law, a
vessel may be transferred and registered under an effective United States-controlled foreign flag if—
‘‘(A) the operator of the vessel receives an operating-differential subsidy pursuant to a contract under
this subtitle which is in force on October 1, 1994, and
the Secretary approves the replacement of such vessel with a comparable vessel, or
‘‘(B) the vessel is covered by an operating agreement under subtitle B, and the Secretary approves

§ 53101

TITLE 46—SHIPPING

the replacement of such vessel with a comparable
vessel for inclusion in the Maritime Security Fleet
established under subtitle B.
‘‘(2) Any such vessel may be requisitioned by the Secretary of Transportation pursuant to section 902 [now
46 U.S.C. 56301 et seq.].’’
(As added Pub. L. 104–239, § 3(b), Oct. 8, 1996, 110 Stat.
3127.)
[Title VI of act June 29, 1936, ch. 858, comprising this
note, consisted of sections 601 to 611 and 613 to 616
which were classified to sections 1171 to 1181 and 1183 to
1185a, respectively, of the former Appendix to this title,
prior to the enactment of Pub. L. 109–304 and elimination of that Appendix. For complete disposition of
those sections, see Disposition Table preceding section
101 of this title.]
CONTRACT PROVISIONS
Act June 29, 1936, ch. 858, title VIII, §§ 801, 802, 809, 49
Stat. 2011, 2015, as amended, provided as follows:
Provision for Books and Records; Filing Balance
Sheets; Inspection and Auditing by Secretary; Rescission of Contract on Failure to Comply With
Provisions
‘‘SEC. 801. Every contract executed by the Secretary
of Transportation under the provisions of title VI or
VII of this Act [former 46 U.S.C. App. 1171 et seq., 1191
et seq., see Disposition Table preceding section 101 of
this title] shall contain provisions requiring (1) that,
the contractor and every affiliate, domestic agent, subsidiary, or holding company connected with, or directly
or indirectly controlling or controlled by, the contractor, to keep its books, records, and accounts, relating
to the maintenance, operation, and servicing of the vessels, services, routes, and lines covered by the contract,
in such form and under such regulations as may be prescribed by the Secretary of Transportation: Provided,
That the provisions of this paragraph shall not require
the duplication of books, records, and accounts required to be kept in some other form by the Interstate
Commerce Commission; (2) that the contractor and
every affiliate, domestic agent, subsidiary, or holding
company connected with, or directly or indirectly controlling or controlled by, the contractor, to file, upon
notice from the Secretary of Transportation, balance
sheets, profit and loss statements, and such other
statements of financial operations, special report,
memoranda of any facts and transactions, which in the
opinion of the Secretary of Transportation affect the
financial results in, the performance of, or transactions
or operations under, such contract; (3) that the Secretary of Transportation shall be authorized to examine and audit the books, records, and accounts of all
persons referred to in this section whenever he may
deem it necessary or desirable; and (4) that upon the
willful failure or refusal of any person described in this
section to comply with the contract provisions required
by this section, the Secretary of Transportation shall
have the right to rescind the contract, and upon such
rescission, the United States shall be relieved of all further liability on such contract.’’
(As amended Pub. L. 97–31, § 12(119), Aug. 6, 1981, 95
Stat. 164.)
Purchase or Requisition of Vessels by United States;
Amount of Payment
‘‘SEC. 802. Every contract executed by the Secretary
of Transportation under authority of title V of this Act
[former 46 U.S.C. App. 1151 et seq., see Disposition
Table preceding section 101 of this title] shall provide
that—
‘‘In the event the United States shall, through purchase or requisition, acquire ownership of the vessel or
vessels on which a construction-differential subsidy
was paid, the owner shall be paid therefor the value
thereof, but in no event shall such payment exceed the
actual depreciated construction cost thereof (together
with the actual depreciated cost of capital improve-

Page 312

ments thereon, but excluding the cost of national-defense features) less the depreciated amount of construction-differential subsidy theretofore paid incident to
the construction or reconditioning of such vessel or
vessels, or the fair and reasonable scrap value of such
vessel as determined by the Secretary of Transportation, whichever is the greater. Such determination
shall be final. In computing the depreciated value of
such vessel, depreciation shall be computed on each
vessel on the schedule adopted by the Bureau of Internal Revenue [Internal Revenue Service] for income-tax
purposes.
‘‘The foregoing provision respecting the requisition
or the acquisition of ownership by the United States
shall run with the title to such vessel or vessels and be
binding on all owners thereof.’’
(As amended June 29, 1936, ch. 858, title VIII, § 802, 49
Stat. 2011; June 23, 1938, ch. 600, § 33, 52 Stat. 962; Aug.
7, 1939, ch. 555, § 2, 53 Stat. 1254; Pub. L. 97–31, § 12(120),
Aug. 6, 1981, 95 Stat. 164.)
Contracts Designed Equitably for All Ports; Minimum Allocation of Funds; Report to Congress;
Preference to Citizens of United States
‘‘SEC. 809. (a) Contracts under this Act [former 46
U.S.C. App. 1101 et seq., see Disposition Table preceding
section 101 of this title] shall be entered into so as to
equitably serve, insofar as possible, the foreign-trade
requirements of the Atlantic, Gulf, Great Lakes, and
Pacific ports of the United States. In order to assure
equitable treatment for each range of ports referred to
in the preceding sentence, not less than 10 percent of
the funds appropriated for construction-differential
subsidy and operating-differential subsidy pursuant to
this Act or any law authorizing funds for the purposes
of this Act shall be allocated to each such port range:
Provided, however, That such allocation shall apply to
the extent that subsidy contracts are approved by the
Secretary of Transportation. For the purposes of this
section, the Secretary shall establish trade routes,
services, or lines that take into account the seasonal
closure of the Saint Lawrence Seaway and provide for
alternate routing of ships via a different range of ports
during that closure so as to maintain continuity of
service on a year-round basis. For the purposes of section 605(c) [set out above], such an alternate routing
via a different range of ports shall be deemed to be
service from Great Lakes ports, provided such alternative routing is based upon receipt or delivery of
cargo at Great Lakes-Saint Lawrence Seaway ports
under through intermodal bills of lading. The Secretary
shall include in the annual report pursuant to section
208 of this Act [former 46 U.S.C. App. 1118, see 46 U.S.C.
50111(a)] a detailed report (1) describing the actions
that have been taken pursuant to this Act to assure insofar as possible that direct and adequate service is
provided by United States-flag commercial vessels to
each range of ports referred to in this section; and (2)
including any recommendations for additional legislation that may be necessary to achieve the purpose of
this section. In awarding contracts under this Act,
preference shall be given to persons who are citizens of
the United States and who have the support, financial
and otherwise, of the domestic communities primarily
interested.
‘‘(b) [Repealed. Pub. L. 109–304, § 19, Oct. 6, 2006, 120
Stat. 1710.]’’
(As amended Pub. L. 91–469, § 26(a), Oct. 21, 1970, 84
Stat. 1034; Pub. L. 94–10, § 3, Mar. 23, 1975, 89 Stat. 16;
Pub. L. 94–127, § 4, Nov. 13, 1975, 89 Stat. 680; Pub. L.
96–470, title II, § 201(a), Oct. 19, 1980, 94 Stat. 2241; Pub.
L. 97–31, § 12(121), Aug. 6, 1981, 95 Stat. 164; Pub. L. 97–35,
title XVI, § 1604, Aug. 13, 1981, 95 Stat. 751; Pub. L.
109–304, §§ 14(b), 19, Oct. 6, 2006, 120 Stat. 1702, 1710.)
ENROLLMENT IN SEALIFT READINESS PROGRAM
Act June 29, 1936, ch. 858, title IX, § 909, as added by
Pub. L. 97–35, title XVI, § 1605, Aug. 13, 1981, 95 Stat. 752,
provided that: ‘‘No vessel may receive construction dif-

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ferential subsidy or operating differential subsidy if it
is not offered for enrollment in a sealift readiness program approved by the Secretary of Defense.’’

§ 53102. Establishment of Maritime Security Fleet
(a) IN GENERAL.—The Secretary of Transportation, in consultation with the Secretary of Defense, shall establish a fleet of active, commercially viable, militarily useful, privately owned
vessels to meet national defense and other security requirements and maintain a United States
presence in international commercial shipping.
The Fleet shall consist of privately owned,
United States-documented vessels for which
there are in effect operating agreements under
this chapter, and shall be known as the Maritime Security Fleet.
(b) VESSEL ELIGIBILITY.—A vessel is eligible to
be included in the Fleet if—
(1) the vessel meets the requirements of
paragraph (1), (2), (3), or (4) of subsection (c);
(2) the vessel is operated (or in the case of a
vessel to be constructed, will be operated) in
providing transportation in foreign commerce;
(3) the vessel is self-propelled and is—
(A) a roll-on/roll-off vessel with a carrying
capacity of at least 80,000 square feet or 500
twenty-foot equivalent units and that is 15
years of age or less on the date the vessel is
included in the Fleet;
(B) a tank vessel that is constructed in the
United States after the date of the enactment of this chapter;
(C) a tank vessel that is 10 years of age or
less on the date the vessel is included in the
Fleet;
(D) a LASH vessel that is 25 years of age or
less on the date the vessel is included in the
Fleet; or
(E) any other type of vessel that is 15 years
of age or less on the date the vessel is included in the Fleet;
(4) the vessel is—
(A) determined by the Secretary of Defense to be suitable for use by the United
States for national defense or military purposes in time of war or national emergency;
and
(B) determined by the Secretary to be
commercially viable; and
(5) the vessel—
(A) is a United States-documented vessel;
or
(B) is not a United States-documented vessel, but—
(i) the owner of the vessel has demonstrated an intent to have the vessel documented under chapter 121 of this title if it
is included in the Fleet; and
(ii) at the time an operating agreement
for the vessel is entered into under this
chapter, the vessel is eligible for documentation under chapter 121 of this title.
(c) REQUIREMENTS REGARDING CITIZENSHIP OF
OWNERS, CHARTERERS, AND OPERATORS.—
(1) VESSEL OWNED AND OPERATED BY SECTION
50501 CITIZENS.—A vessel meets the requirements of this paragraph if, during the period
of an operating agreement under this chapter
that applies to the vessel, the vessel will be

§ 53102

owned and operated by one or more persons
that are citizens of the United States under
section 50501 of this title.
(2) VESSEL OWNED BY SECTION 50501 CITIZEN OR
UNITED STATES CITIZEN TRUST, AND CHARTERED
TO DOCUMENTATION CITIZEN.—A vessel meets
the requirements of this paragraph if—
(A) during the period of an operating
agreement under this chapter that applies to
the vessel, the vessel will be—
(i) owned by a person that is a citizen of
the United States under section 50501 of
this title or that is a United States citizen
trust; and
(ii) demise chartered to a person—
(I) that is eligible to document the vessel under chapter 121 of this title;
(II) the chairman of the board of directors, chief executive officer, and a majority of the members of the board of directors of which are citizens of the United
States under section 50501 of this title,
and are appointed and subjected to removal only upon approval by the Secretary; and
(III) that certifies to the Secretary
that there are no treaties, statutes, regulations, or other laws that would prohibit the contractor for the vessel from
performing its obligations under an operating agreement under this chapter;
(B) in the case of a vessel that will be demise chartered to a person that is owned or
controlled by another person that is not a
citizen of the United States under section
50501 of this title, the other person enters
into an agreement with the Secretary not to
influence the operation of the vessel in a
manner that will adversely affect the interests of the United States; and
(C) the Secretary and the Secretary of Defense notify the Committee on Armed Services and the Committee on Commerce,
Science, and Transportation of the Senate
and the Committee on Armed Services of the
House of Representatives that they concur
with the certification required under subparagraph (A)(ii)(III), and have reviewed and
agree that there are no other legal, operational, or other impediments that would
prohibit the contractor for the vessel from
performing its obligations under an operating agreement under this chapter.
(3) VESSEL OWNED AND OPERATED BY DEFENSE
CONTRACTOR.—A vessel meets the requirements
of this paragraph if—
(A) during the period of an operating
agreement under this chapter that applies to
the vessel, the vessel will be owned and operated by a person that—
(i) is eligible to document a vessel under
chapter 121 of this title;
(ii) operates or manages other United
States-documented vessels for the Secretary of Defense, or charters other vessels
to the Secretary of Defense;
(iii) has entered into a special security
agreement for purposes of this paragraph
with the Secretary of Defense;
(iv) makes the certification described in
paragraph (2)(A)(ii)(III); and

§ 53102

TITLE 46—SHIPPING

(v) in the case of a vessel described in
paragraph (2)(B), enters into an agreement
referred to in that paragraph; and
(B) the Secretary and the Secretary of Defense notify the Committee on Armed Services and the Committee on Commerce,
Science, and Transportation of the Senate
and the Committee on Armed Services of the
House of Representatives that they concur
with the certification required under subparagraph (A)(iv), and have reviewed and
agree that there are no other legal, operational, or other impediments that would
prohibit the contractor for the vessel from
performing its obligations under an operating agreement under this chapter.
(4) VESSEL OWNED BY DOCUMENTATION CITIZEN
AND CHARTERED TO SECTION 50501 CITIZEN.—A
vessel meets the requirements of this paragraph if, during the period of an operating
agreement under this chapter that applies to
the vessel, the vessel will be—
(A) owned by a person that is eligible to
document a vessel under chapter 121 of this
title; and
(B) demise chartered to a person that is a
citizen of the United States under section
50501 of this title.
(d) REQUEST BY SECRETARY OF DEFENSE.—The
Secretary of Defense shall request the Secretary
of Homeland Security to issue any waiver under
section 501 of this title that is necessary for purposes of this chapter.
(e) VESSEL STANDARDS.—
(1) CERTIFICATE OF INSPECTION.—A vessel
used to provide oceangoing transportation
which the Secretary of the department in
which the Coast Guard is operating determines meets the criteria of subsection (b) of
this section but which, on the date of enactment of the Maritime Security Act of 2003, is
not documented under chapter 121 of this title,
shall be eligible for a certificate of inspection
if the Secretary determines that—
(A) the vessel is classed by and designed in
accordance with the rules of the American
Bureau of Shipping, or another classification
society accepted by the Secretary;
(B) the vessel complies with applicable
international agreements and associated
guidelines, as determined by the country in
which the vessel was documented immediately before becoming documented under
chapter 121; and
(C) that country has not been identified by
the Secretary as inadequately enforcing
international vessel regulations as to that
vessel.
(2) CONTINUED ELIGIBILITY FOR CERTIFICATE.—
Paragraph (1) does not apply to a vessel after
any date on which the vessel fails to comply
with the applicable international agreements
and associated guidelines referred to in paragraph (1)(B).
(3) RELIANCE ON CLASSIFICATION SOCIETY.—
(A) IN GENERAL.—The Secretary may rely
on a certification from the American Bureau
of Shipping or, subject to subparagraph (B),
another classification society accepted by

Page 314

the Secretary to establish that a vessel is in
compliance with the requirements of paragraphs (1) and (2).
(B) FOREIGN CLASSIFICATION SOCIETY.—The
Secretary may accept certification from a
foreign classification society under subparagraph (A) only—
(i) to the extent that the government of
the foreign country in which the society is
headquartered provides access on a reciprocal basis to the American Bureau of
Shipping; and
(ii) if the foreign classification society
has offices and maintains records in the
United States.
(f) WAIVER OF AGE RESTRICTION.—The Secretary of Defense, in conjunction with the Secretary of Transportation, may waive the application of an age restriction under subsection
(b)(3) if the Secretaries jointly determine that
the waiver—
(1) is in the national interest;
(2) is appropriate to allow the maintenance
of the economic viability of the vessel and any
associated operating network; and
(3) is necessary due to the lack of availability of other vessels and operators that comply
with the requirements of this chapter.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1805; amended
Pub. L. 109–304, § 13(a)(1), Oct. 6, 2006, 120 Stat.
1700.)
REFERENCES IN TEXT
The date of the enactment of this chapter, referred to
in subsec. (b)(3)(B), is the date of enactment of Pub. L.
108–136, which was approved Nov. 24, 2003.
The date of enactment of the Maritime Security Act
of 2003, referred to in subsec. (e)(1), is the date of enactment of Pub. L. 108–136, which was approved Nov. 24,
2003.
AMENDMENTS
2006—Subsec. (c). Pub. L. 109–304, § 13(a)(1)(A), (B),
substituted ‘‘section 50501’’ for ‘‘section 2’’ in the headings of pars. (1), (2), and (4) and substituted ‘‘section
50501 of this title’’ for ‘‘section 2 of the Shipping Act,
1916 (46 U.S.C. App. 802)’’ in pars. (1), (2)(A)(i), (ii)(II),
(B), and (4)(B).
Subsec. (d). Pub. L. 109–304, § 13(a)(1)(C), substituted
‘‘section 501 of this title’’ for ‘‘the first section of Public Law 81–891 (64 Stat. 1120; 46 U.S.C. App. note prec.
3)’’.
Subsec. (e)(1). Pub. L. 109–304, § 13(a)(1)(D), substituted
‘‘documented under chapter 121 of this title,’’ for ‘‘a
documented vessel (as that term is defined in section
12101 of this title)’’ in introductory provisions and
‘‘documented under chapter 121’’ for ‘‘a documented
vessel (as defined in that section)’’ in subpar. (B).
VESSEL STANDARDS
Pub. L. 104–324, title XI, § 1137, Oct. 19, 1996, 110 Stat.
3988, as amended by Pub. L. 108–136, div. C, title XXXV,
§ 3534(b)(2), Nov. 24, 2003, 117 Stat. 1818, provided that:
‘‘(a) CERTIFICATE OF INSPECTION.—A vessel used to
provide transportation service as a common carrier
which the Secretary of Transportation determines
meets the criteria of section 53102(b) of title 46, United
States Code, but which on the date of enactment of this
Act [Oct. 19, 1996] is not a documented vessel (as that
term is defined in section 2101 [now section 106] of title
46, United States Code), shall be eligible for a certificate of inspection if the Secretary determines that—
‘‘(1) the vessel is classed by and designed in accordance with the rules of the American Bureau of Ship-

Page 315

TITLE 46—SHIPPING

ping or another classification society accepted by the
Secretary;
‘‘(2) the vessel complies with applicable international agreements and associated guidelines, as determined by the country in which the vessel was documented immediately before becoming a documented
vessel (as defined in that section); and
‘‘(3) that country has not been identified by the
Secretary as inadequately enforcing international
vessel regulations as to that vessel.
‘‘(b) CONTINUED ELIGIBILITY FOR CERTIFICATE.—Subsection (a) does not apply to a vessel after any date on
which the vessel fails to comply with the applicable
international agreements and associated guidelines referred to in subsection (a)(2).
‘‘(c) RELIANCE ON CLASSIFICATION SOCIETY.—
‘‘(1) IN GENERAL.—The Secretary may rely on a certification from the American Bureau of Shipping or,
subject to paragraph (2), another classification society accepted by the Secretary to establish that a vessel is in compliance with the requirements of subsections (a) and (b).
‘‘(2) FOREIGN CLASSIFICATION SOCIETY.—The Secretary may accept certification from a foreign classification society under paragraph (1) only—
‘‘(A) to the extent that the government of the foreign country in which the society is headquartered
provides access on a reciprocal basis to the American Bureau of Shipping; and
‘‘(B) if the foreign classification society has offices and maintains records in the United States.’’

§ 53103. Award of operating agreements
(a) IN GENERAL.—The Secretary shall require,
as a condition of including any vessel in the
Fleet, that the person that is the owner or operator of the vessel for purposes of section 53102(c)
enter into an operating agreement with the Secretary under this section.
(b) PROCEDURE FOR APPLICATIONS.—
(1) ACCEPTANCE OF APPLICATIONS.—Beginning
no later than 30 days after the effective date of
this chapter, the Secretary shall accept applications for enrollment of vessels in the Fleet.
(2) ACTION ON APPLICATIONS.—Within 90 days
after receipt of an application for enrollment
of a vessel in the Fleet, the Secretary shall approve the application in conjunction with the
Secretary of Defense, and shall enter into an
operating agreement with the applicant, or
provide in writing the reason for denial of that
application.
(3) PARTICIPATING FLEET VESSELS.—
(A) IN GENERAL.—The Secretary shall accept an application for an operating agreement for a participating fleet vessel under
the priority under subsection (c)(1)(B) only
from a person that has authority to enter
into an operating agreement for the vessel
with respect to the full term of the operating agreement.
(B) VESSEL UNDER DEMISE CHARTER.—For
purposes of subparagraph (A), in the case of
a vessel that is subject to a demise charter
that terminates by its terms on September
30, 2005 (without giving effect to any extension provided therein for completion of a
voyage or to effect the actual redelivery of
the vessel), or that is terminable at will by
the owner of the vessel after such date, only
the owner of the vessel shall be treated as
having the authority referred to in paragraph (1).
(C) VESSEL OWNED BY UNITED STATES CITIZEN TRUST.—For purposes of subparagraph

§ 53103

(B), in the case of a vessel owned by a United
States citizen trust, the term ‘‘owner of the
vessel’’ includes a beneficial owner of the
vessel with respect to such trust.
(c) PRIORITY FOR AWARDING AGREEMENTS.—
(1) IN GENERAL.—Subject to the availability
of appropriations, the Secretary shall enter
into operating agreements according to the
following priority:
(A) NEW TANK VESSELS.—First, for any
tank vessel that—
(i) is constructed in the United States
after the effective date of this chapter;
(ii) is eligible to be included in the Fleet
under section 53102(b); and
(iii) during the period of an operating
agreement under this chapter that applies
to the vessel, will be owned and operated
by one or more persons that are citizens of
the United States under section 50501 of
this title,
except that the Secretary shall not enter
into operating agreements under this subparagraph for more than 5 such vessels.
(B) PARTICIPATING FLEET VESSELS.—Second, to the extent amounts are available
after applying subparagraph (A), for any participating fleet vessel, except that the Secretary shall not enter into operating agreements under this subparagraph for more
than 47 vessels.
(C) CERTAIN VESSELS OPERATED BY SECTION
50501 CITIZENS.—Third, to the extent amounts
are available after applying subparagraphs
(A) and (B), for any other vessel that is eligible to be included in the Fleet under section
53102(b), and that, during the period of an operating agreement under this chapter that
applies to the vessel, will be—
(i) owned and operated by one or more
persons that are citizens of the United
States under section 50501 of this title; or
(ii) owned by a person that is eligible to
document the vessel under chapter 121 of
this title, and operated by a person that is
a citizen of the United States under section 50501 of this title.
(D) OTHER ELIGIBLE VESSELS.—Fourth, to
the extent amounts are available after applying subparagraphs (A), (B), and (C), for
any other vessel that is eligible to be included in the Fleet under section 53102(b).
(2) REDUCTION IN NUMBER OF SLOTS FOR PARTICIPATING FLEET VESSELS.—The number in
paragraph (1)(B) shall be reduced by 1—
(A) for each participating fleet vessel for
which an application for enrollment in the
Fleet is not received by the Secretary within
the 90-day period beginning on the effective
date of this chapter; and
(B) for each participating fleet vessel for
which an application for enrollment in the
Fleet received by the Secretary is not approved by the Secretary and the Secretary
of Defense within the 90-day period beginning on the date of such receipt.
(3) DISCRETION WITHIN PRIORITY.—The Secretary—
(A) subject to subparagraph (B), may
award operating agreements within each pri-

§ 53104

TITLE 46—SHIPPING

ority under paragraph (1) as the Secretary
considers appropriate; and
(B) shall award operating agreements
within a priority—
(i) in accordance with operational requirements specified by the Secretary of
Defense;
(ii) in the case of operating agreements
awarded under subparagraph (C) or (D) of
paragraph (1), according to applicants’
records of owning and operating vessels;
and
(iii) subject to the approval of the Secretary of Defense.
(4) TREATMENT OF TANK VESSEL TO BE REPLACED.—(A) For purposes of the application
of paragraph (1)(A) with respect to the award
of an operating agreement, the Secretary may
treat an existing tank vessel that is eligible to
be included in the Fleet under section 53102(b)
as a vessel that is constructed in the United
States after the effective date of this chapter,
if—
(i)(I) a binding contract for construction in
the United States of a replacement vessel to
be operated under the operating agreement
is executed by not later than 9 months after
the first date amounts are available to carry
out this chapter; and
(II) the replacement vessel is eligible to be
included in the Fleet under section 53102(b);
or
(ii)(I) not later than 9 months after the
first date amounts are available to carry out
this chapter, the operator of the existing
tank vessel enters into an agreement to
charter one or more tank vessels to be built
in the United States and operated as a documented vessel or documented vessels;
(II) the combined tonnage of the vessels required to be chartered under subclause (I) is
equal to or greater than the tonnage of the
existing tank vessel subject to an operating
agreement;
(III) the operator enters into an agreement
with the Secretary that is substantially the
same as an Emergency Preparedness Agreement under section 53107 of this title, under
which the operator shall make available
commercial transportation resources as provided in that section;
(IV) if the person that is the owner or operator of the existing tank vessel owns or
operates more than one existing tank vessel
subject to an operating agreement, the combined tonnage of those vessels required to be
chartered under subclause (I) by that person
is equal to or greater than the combined tonnage of all such existing tank vessels owned
or operated by such person that are subject
to operating agreements.
(B) No payment under this chapter may be
made for an existing tank vessel with respect
to which a binding contract is entered into
under subparagraph (A)(i) for which an operating agreement is awarded under this paragraph after the earlier of—
(i) 4 years after the first date amounts are
available to carry out this chapter; or
(ii) the date of delivery of the replacement
tank vessel.

Page 316

(C) For purpose of subparagraph (A)(ii), tonnage shall be measured under section 14502 of
this title, or an alternate tonnage measured
under section 14302 of this title as prescribed
by the Secretary under section 14104 of this
title.
(D) No payment under this chapter may be
made for an existing tank vessel with respect
to which an agreement is entered into under
subparagraph (A)(ii) for any period occurring—
(i) after the date that is 5 years after the
first date that amounts became available to
carry out this chapter, if the vessel or vessels required to be chartered under subparagraph (A)(ii) have not been delivered; or
(ii) after delivery of the vessel or vessels
required to be chartered under such subparagraph, if any of such vessels is not chartered
by the operator of the existing tank vessel.
(d) LIMITATION.—The Secretary may not award
operating agreements under this chapter that
require payments under section 53106 for a fiscal
year for more than 60 vessels.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1808; amended
Pub. L. 109–304, § 13(a)(2), Oct. 6, 2006, 120 Stat.
1700; Pub. L. 109–364, div. C, title XXXV,
§ 3502(b)(1), Oct. 17, 2006, 120 Stat. 2515.)
REFERENCES IN TEXT
The effective date of this chapter, referred to in subsecs. (b)(1), (c)(1)(A)(i), (2)(A), (4)(A), is Oct. 1, 2004, see
section 3537(a) of Pub. L. 108–136, set out as an Effective
Date note under section 53101 of this title.
AMENDMENTS
2006—Subsec. (c)(1). Pub. L. 109–304, § 13(a)(2)(A)–(C),
substituted ‘‘section 50501 of this title’’ for ‘‘section 2 of
the Shipping Act, 1916 (46 U.S.C. App. 802)’’ in subpars.
(A)(iii) and (C)(i) and (ii), ‘‘applying subparagraph’’ for
‘‘applying subparagraphs’’ in subpar. (B), and ‘‘section
50501’’ for ‘‘section 2’’ in subpar. (C) heading.
Subsec. (c)(3)(B). Pub. L. 109–304, § 13(a)(2)(D), substituted ‘‘agreements’’ for ‘‘agreement’’.
Subsec. (c)(4)(A). Pub. L. 109–364, § 3502(b)(1)(A)–(D),
redesignated cls. (i) and (ii) as cl. (i), subcls. (I) and (II),
respectively, in subcl. (II) substituted ‘‘; or’’ for period
at end, and added cl. (ii).
Subsec. (c)(4)(B). Pub. L. 109–364, § 3502(b)(1)(E), inserted ‘‘with respect to which a binding contract is entered into under subparagraph (A)(i)’’ after ‘‘existing
tank vessel’’.
Subsec. (c)(4)(C), (D). Pub. L. 109–364, § 3502(b)(1)(F),
added subpars. (C) and (D).

§ 53104. Effectiveness of operating agreements
(a) EFFECTIVENESS, GENERALLY.—The Secretary may enter into an operating agreement
under this chapter for fiscal year 2006. Except as
provided in subsection (b), the agreement shall
be effective only for 1 fiscal year, but shall be
renewable, subject to the availability of appropriations, for each subsequent fiscal year
through the end of fiscal year 2025.
(b) VESSELS UNDER CHARTER TO UNITED
STATES.—Unless an earlier date is requested by
the applicant, the effective date for an operating
agreement with respect to a vessel that is, on
the date of entry into an operating agreement,
on charter to the United States Government,
other than a charter pursuant to an Emergency
Preparedness Agreement under section 53107,

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§ 53105

TITLE 46—SHIPPING

shall be the expiration or termination date of
the Government charter covering the vessel, or
any earlier date the vessel is withdrawn from
that charter.
(c) TERMINATION.—
(1) TERMINATION BY SECRETARY.—If the contractor with respect to an operating agreement materially fails to comply with the
terms of the agreement—
(A) the Secretary shall notify the contractor and provide a reasonable opportunity to
comply with the operating agreement;
(B) the Secretary shall terminate the operating agreement if the contractor fails to
achieve such compliance; and
(C) upon such termination, any funds obligated by the agreement shall be available to
the Secretary to carry out this chapter.
(2) EARLY TERMINATION BY CONTRACTOR, GENERALLY.—An operating agreement under this
chapter shall terminate on a date specified by
the contractor if the contractor notifies the
Secretary, by not later than 60 days before the
effective date of the termination, that the
contractor intends to terminate the agreement.
(3) EARLY TERMINATION BY CONTRACTOR, WITH
AVAILABLE REPLACEMENT.—An operating agreement under this chapter shall terminate upon
the expiration of the 3-year period beginning
on the date a vessel begins operating under the
agreement, if—
(A) the contractor notifies the Secretary,
by not later than 2 years after the date the
vessel begins operating under the agreement, that the contractor intends to terminate the agreement under this paragraph;
and
(B) the Secretary, in conjunction with the
Secretary of Defense, determines that—
(i) an application for an operating agreement under this chapter has been received
for a replacement vessel that is acceptable
to the Secretaries; and
(ii) during the period of an operating
agreement under this chapter that applies
to the replacement vessel, the replacement
vessel will be—
(I) owned and operated by one or more
persons that are citizens of the United
States under section 50501 of this title;
or
(II) owned by a person that is eligible
to document the vessel under chapter 121
of this title, and operated by a person
that is a citizen of the United States
under section 50501 of this title.
(d) NONRENEWAL FOR LACK OF FUNDS.—If, by
the first day of a fiscal year, sufficient funds
have not been appropriated under the authority
provided by this chapter for that fiscal year,
then the Secretary shall notify the Committee
on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services of the
House of Representatives that operating agreements authorized under this chapter for which
sufficient funds are not available will not be renewed for that fiscal year if sufficient funds are
not appropriated by the 60th day of that fiscal
year.

(e) RELEASE OF VESSELS FROM OBLIGATIONS.—
If an operating agreement under this chapter is
terminated under subsection (c)(3), or if funds
are not appropriated for payments under an operating agreement under this chapter for any
fiscal year by the 60th day of that fiscal year,
then—
(1) each vessel covered by the operating
agreement is thereby released from any further obligation under the operating agreement;
(2) the owner or operator of the vessel may
transfer and register such vessel under a foreign registry that is acceptable to the Secretary of Transportation and the Secretary of
Defense, notwithstanding section 56101 of this
title; and
(3) if chapter 563 of this title is applicable to
such vessel after registration of the vessel
under such a registry, then the vessel is available to be requisitioned by the Secretary of
Transportation pursuant to chapter 563.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1810; amended
Pub. L. 109–304, § 13(a)(3), Oct. 6, 2006, 120 Stat.
1701; Pub. L. 111–383, div. C, title XXXV, § 3502(1),
Jan. 7, 2011, 124 Stat. 4518.)
AMENDMENTS
2011—Subsec. (a). Pub. L. 111–383 substituted ‘‘2025’’
for ‘‘2015’’.
2006—Subsec. (c)(3)(B)(ii). Pub. L. 109–304, § 13(a)(3)(A),
substituted ‘‘section 50501 of this title’’ for ‘‘section 2 of
the Shipping Act, 1916 (46 U.S.C. App. 802)’’ in subcls. (I)
and (II).
Subsec. (e)(2). Pub. L. 109–304, § 13(a)(3)(B), substituted
‘‘section 56101 of this title’’ for ‘‘section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808)’’.
Subsec. (e)(3). Pub. L. 109–304, § 13(a)(3)(C), substituted
‘‘chapter 563 of this title’’ and ‘‘chapter 563’’ for ‘‘section 902 of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1242)’’ and ‘‘section 902 of such Act’’, respectively.

§ 53105. Obligations and rights under operating
agreements
(a) OPERATION OF VESSEL.—An operating
agreement under this chapter shall require that,
during the period a vessel is operating under the
agreement—
(1) the vessel—
(A) shall be operated exclusively in the
foreign commerce or in mixed foreign commerce and domestic trade allowed under a
registry endorsement issued under section
12111 of this title; and
(B) shall not otherwise be operated in the
coastwise trade; and
(2) the vessel shall be documented under
chapter 121 of this title.
(b) ANNUAL PAYMENTS BY SECRETARY.—
(1) IN GENERAL.—An operating agreement
under this chapter shall require, subject to the
availability of appropriations, that the Secretary make a payment each fiscal year to the
contractor in accordance with section 53106.
(2) OPERATING AGREEMENT IS OBLIGATION OF
UNITED STATES GOVERNMENT.—An operating
agreement under this chapter constitutes a
contractual obligation of the United States
Government to pay the amounts provided for
in the agreement to the extent of actual appropriations.

§ 53106

TITLE 46—SHIPPING

(c) DOCUMENTATION REQUIREMENT.—Each vessel covered by an operating agreement (including an agreement terminated under section
53104(c)(2)) shall remain documented under chapter 121 of this title, until the date the operating
agreement would terminate according to its
terms.
(d) NATIONAL SECURITY REQUIREMENTS.—
(1) IN GENERAL.—A contractor with respect
to an operating agreement (including an
agreement
terminated
under
section
53104(c)(2)) shall continue to be bound by the
provisions of section 53107 until the date the
operating agreement would terminate according to its terms.
(2) EMERGENCY PREPAREDNESS AGREEMENT.—
All terms and conditions of an Emergency
Preparedness Agreement entered into under
section 53107 shall remain in effect until the
date the operating agreement would terminate
according to its terms, except that the terms
of such Emergency Preparedness Agreement
may be modified by the mutual consent of the
contractor, the Secretary of Transportation,
and the Secretary of Defense.
(e) TRANSFER OF OPERATING AGREEMENTS.—
(1) IN GENERAL.—A contractor under an operating agreement may transfer the agreement
(including all rights and obligations under the
agreement) to any person that is eligible to
enter into that operating agreement under
this chapter, if the transfer is approved by the
Secretary and the Secretary of Defense.
(2) LIMITATION.—The Secretary of Defense
may not approve under paragraph (1) transfer
of an operating agreement to a person that is
not a citizen of the United States under section 50501 of this title unless the Secretary of
Defense determines that there is no person
who is a citizen under such section and is interested in obtaining the operating agreement
for a vessel that is otherwise eligible to be included in the Fleet under section 53102(b) and
meets the requirements of the Department of
Defense.
(f) REPLACEMENT VESSEL.—A contractor may
replace a vessel under an operating agreement
with another vessel that is eligible to be included in the Fleet under section 53102(b), if the
Secretary, in conjunction with the Secretary of
Defense, approves replacement of the vessel.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1812; amended
Pub. L. 109–304, § 13(a)(4), Oct. 6, 2006, 120 Stat.
1701; Pub. L. 109–364, div. C, title XXXV, § 3502(a),
Oct. 17, 2006, 120 Stat. 2514; Pub. L. 110–181, div.
C, title XXXV, § 3526(f), Jan. 28, 2008, 122 Stat.
602.)
AMENDMENTS
2008—Subsec. (e)(2). Pub. L. 110–181 substituted ‘‘section 50501 of this title’’ for ‘‘section 2 of the Shipping
Act, 1916 (46 U.S.C. App. 802),’’.
2006—Subsec. (a)(1)(A). Pub. L. 109–304, § 13(a)(4)(A),
substituted ‘‘section 12111’’ for ‘‘section 12105’’.
Subsec. (e). Pub. L. 109–364 designated existing provisions as par. (1), inserted heading and aligned margins
in par. (1), and added par. (2).
Subsec. (f). Pub. L. 109–304, § 13(a)(4)(B), substituted
‘‘approves’’ for ‘‘approve’’.

Page 318

§ 53106. Payments
(a) ANNUAL PAYMENT.—
(1) IN GENERAL.—The Secretary, subject to
the availability of appropriations and the
other provisions of this section, shall pay to
the contractor for an operating agreement, for
each vessel that is covered by the operating
agreement, an amount equal to—
(A) $2,600,000 for each of fiscal years 2006,
2007, and 2008;
(B) $2,900,000, for each of fiscal years 2009,
2010, and 2011; and
(C) $3,100,000 for each of fiscal years 2012
though 1 2025.
(2) TIMING.—The amount shall be paid in
equal monthly installments at the end of each
month. The amount shall not be reduced except as provided by this section.
(b) CERTIFICATION REQUIRED FOR PAYMENT.—As
a condition of receiving payment under this section for a fiscal year for a vessel, the contractor
for the vessel shall certify, in accordance with
regulations issued by the Secretary, that the
vessel has been and will be operated in accordance with section 53105(a)(1) for at least 320 days
in the fiscal year. Days during which the vessel
is drydocked, surveyed, inspected, or repaired
shall be considered days of operation for purposes of this subsection.
(c) GENERAL LIMITATIONS.—The Secretary of
Transportation shall not make any payment
under this chapter for a vessel with respect to
any days for which the vessel is—
(1) under a charter to the United States Government, other than a charter pursuant to an
Emergency Preparedness Agreement under
section 53107;
(2) not operated or maintained in accordance
with an operating agreement under this chapter; or
(3) more than—
(A) 25 years of age, except as provided in
subparagraph (B) or (C);
(B) 20 years of age, in the case of a tank
vessel; or
(C) 30 years of age, in the case of a LASH
vessel.
(d) REDUCTIONS IN PAYMENTS.—With respect to
payments under this chapter for a vessel covered
by an operating agreement, the Secretary—
(1) except as provided in paragraph (2), shall
not reduce any payment for the operation of
the vessel to carry military or other preference cargoes under section 55302(a), 55304,
55305, or 55314 of this title, section 2631 of title
10, or any other cargo preference law of the
United States;
(2) shall not make any payment for any day
that the vessel is engaged in transporting
more than 7,500 tons of civilian bulk preference cargoes pursuant to section 55302(a),
55305, or 55314 of this title that is bulk cargo;
and
(3) shall make a pro rata reduction in payment for each day less than 320 in a fiscal year
that the vessel is not operated in accordance
with section 53105(a)(1), with days during
1 So

in original. Probably should be ‘‘through’’.

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TITLE 46—SHIPPING

which the vessel is drydocked or undergoing
survey, inspection, or repair considered to be
days on which the vessel is operated.
(e) LIMITATION REGARDING NONCONTIGUOUS DOTRADE.—
(1) IN GENERAL.—No contractor shall receive
payments pursuant to this chapter during a
period in which it participates in noncontiguous domestic trade.
(2) LIMITATION ON APPLICATION.—Paragraph
(1) shall not apply to any person that is a citizen of the United States within the meaning of
section 50501 of this title, applying the 75 percent ownership requirement of that section.
(3) PARTICIPATES IN A NONCONTIGUOUS DOMESTIC TRADE DEFINED.—In this subsection the
term ‘‘participates in a noncontiguous domestic trade’’ means directly or indirectly owns,
charters, or operates a vessel engaged in
transportation of cargo between a point in the
contiguous 48 States and a point in Alaska,
Hawaii, or Puerto Rico, other than a point in
Alaska north of the Arctic Circle.

MESTIC

(f) PRIORITY IN ALLOCATION OF AVAILABLE
AMOUNTS.—If the amount available for a fiscal
year for making payments under operating
agreements under this chapter is not sufficient
to pay the full amount authorized under each
agreement pursuant to this section for such fiscal year, the amount available shall be allocated
among such agreements in a manner that gives
priority to payments for vessels that are subject
to agreements under section 3517 of the Maritime Security Act of 2003 (46 U.S.C. 53101 note).
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1813; amended
Pub. L. 109–304, § 13(a)(5), Oct. 6, 2006, 120 Stat.
1701; Pub. L. 109–364, div. C, title XXXV, § 3502(c),
Oct. 17, 2006, 120 Stat. 2516; Pub. L. 111–383, div.
C, title XXXV, § 3502(2), Jan. 7, 2011, 124 Stat.
4518.)
REFERENCES IN TEXT
Section 3517 of the Maritime Security Act of 2003, referred to in subsec. (f), is section 3517 of Pub. L. 108–136,
which is set out as a note under section 53101 of this
title.
AMENDMENTS
2011—Subsec. (a)(1)(C). Pub. L. 111–383 substituted
‘‘for each of fiscal years 2012 though 2025’’ for ‘‘for each
fiscal years 2012, 2013, 2014, and 2015’’.
2006—Subsec. (d)(1). Pub. L. 109–304, § 13(a)(5)(A), substituted ‘‘section 55302(a), 55304, 55305, or 55314 of this
title, section 2631 of title 10’’ for ‘‘section 2631 of title
10, United States Code, the Act of March 26, 1934 (46
U.S.C. App. 1241–1), section 901(a), 901(b), or 901b of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1241(a),
1241(b), or 1241f)’’.
Subsec. (d)(2). Pub. L. 109–304, § 13(a)(5)(B), substituted
‘‘section 55302(a), 55305, or 55314 of this title’’ for ‘‘section 901(a), 901(b), or 901b of the Merchant Marine Act,
1936 (46 U.S.C. App. 1241(a), 1241(b), or 1241f),’’.
Subsec. (e)(2). Pub. L. 109–304, § 13(a)(5)(C), substituted
‘‘section 50501 of this title, applying the 75 percent ownership requirement of that section’’ for ‘‘section 2(c) of
the Shipping Act, 1916 (46 U.S.C. App. 802(c))’’.
Subsec. (f). Pub. L. 109–364 added subsec. (f).

§ 53107. National security requirements
(a) EMERGENCY PREPAREDNESS AGREEMENT REQUIRED.—The Secretary shall establish an Emer-

§ 53107

gency Preparedness Program under this section
that is approved by the Secretary of Defense.
Under the program, the Secretary, in conjunction with the Secretary of Defense, shall include
in each operating agreement under this chapter
a requirement that the contractor enter into an
Emergency Preparedness Agreement under this
section with the Secretary. The Secretary shall
negotiate and enter into an Emergency Preparedness Agreement with each contractor as
promptly as practicable after the contractor has
entered into an operating agreement under this
chapter.
(b) TERMS OF AGREEMENT.—
(1) IN GENERAL.—An Emergency Preparedness Agreement under this section shall require that upon a request by the Secretary of
Defense during time of war or national emergency, or whenever determined by the Secretary of Defense to be necessary for national
security or contingency operation (as that
term is defined in section 101 of title 10,
United States Code), a contractor for a vessel
covered by an operating agreement under this
chapter shall make available commercial
transportation resources (including services).
(2) BASIC TERMS.—(A) The basic terms of the
Emergency Preparedness Agreement shall be
established (subject to subparagraph (B)) by
the Secretary and the Secretary of Defense.
(B) In any Emergency Preparedness Agreement, the Secretary and a contractor may
agree to additional or modifying terms appropriate to the contractor’s circumstances if
those terms have been approved by the Secretary of Defense.
(3) DEFENSE MEASURES AGAINST UNAUTHORIZED SEIZURES.—(A) The Emergency Preparedness Agreement for any operating agreement
that first takes effect or is renewed after the
date of enactment of the National Defense Authorization Act for Fiscal Year 2010 shall require that any vessel operating under the
agreement in the carriage of cargo for the Department of Defense in an area that is designated by the Coast Guard as an area of high
risk of piracy shall be equipped with, at a minimum, appropriate non-lethal defense measures to protect the vessel, crew, and cargo
from unauthorized seizure at sea.
(B) The Secretary of Defense and the Secretary of the department in which the Coast
Guard is operating shall jointly prescribe the
non-lethal defense measures that are required
under this paragraph.
(c) PARTICIPATION AFTER EXPIRATION OF OPERAGREEMENT.—Except as provided by section 53105(d), the Secretary may not require,
through an Emergency Preparedness Agreement
or operating agreement, that a contractor continue to participate in an Emergency Preparedness Agreement after the operating agreement
with the contractor has expired according to its
terms or is otherwise no longer in effect. After
expiration of an Emergency Preparedness Agreement, a contractor may volunteer to continue
to participate in such an agreement.
(d) RESOURCES MADE AVAILABLE.—The commercial transportation resources to be made
available under an Emergency Preparedness
Agreement shall include vessels or capacity in

ATING

§ 53108

TITLE 46—SHIPPING

vessels, intermodal systems and equipment, terminal facilities, intermodal and management
services, and other related services, or any
agreed portion of such nonvessel resources for
activation as the Secretary of Defense may determine to be necessary, seeking to minimize
disruption of the contractor’s service to commercial shippers.
(e) COMPENSATION.—
(1) IN GENERAL.—The Secretary shall include
in each Emergency Preparedness Agreement
provisions approved by the Secretary of Defense under which the Secretary of Defense
shall pay fair and reasonable compensation for
all commercial transportation resources provided pursuant to this section.
(2) SPECIFIC REQUIREMENTS.—Compensation
under this subsection—
(A) shall not be less than the contractor’s
commercial market charges for like transportation resources;
(B) shall be fair and reasonable considering
all circumstances;
(C) shall be provided from the time that a
vessel or resource is required by the Secretary of Defense until the time that it is redelivered to the contractor and is available
to reenter commercial service; and
(D) shall be in addition to and shall not in
any way reflect amounts payable under section 53106.
(f) TEMPORARY REPLACEMENT VESSELS.—Notwithstanding section 55302(a), 55304, 55305, or
55314 of this title, section 2631 of title 10, or any
other cargo preference law of the United
States—
(1) a contractor may operate or employ in
foreign commerce a foreign-flag vessel or foreign-flag vessel capacity as a temporary replacement for a United States-documented
vessel or United States-documented vessel capacity that is activated by the Secretary of
Defense under an Emergency Preparedness
Agreement or under a primary Department of
Defense-approved sealift readiness program;
and
(2) such replacement vessel or vessel capacity shall be eligible during the replacement
period to transport preference cargoes subject
to sections 55302(a), 55304, 55305, and 55314 of
this title and section 2631 of title 10 to the
same extent as the eligibility of the vessel or
vessel capacity replaced.
(g) REDELIVERY AND LIABILITY OF UNITED
STATES FOR DAMAGES.—
(1) IN GENERAL.—All commercial transportation resources activated under an Emergency Preparedness Agreement shall, upon
termination of the period of activation, be redelivered to the contractor in the same good
order and condition as when received, less ordinary wear and tear, or the Secretary of Defense shall fully compensate the contractor for
any necessary repair or replacement.
(2) LIMITATION ON LIABILITY OF U.S.—Except
as may be expressly agreed to in an Emergency Preparedness Agreement, or as otherwise provided by law, the Government shall
not be liable for disruption of a contractor’s
commercial business or other consequential

Page 320

damages to a contractor arising from activation of commercial transportation resources
under an Emergency Preparedness Agreement.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1814; amended
Pub. L. 109–304, § 13(a)(6), Oct. 6, 2006, 120 Stat.
1701; Pub. L. 111–84, div. C, title XXXV, § 3505,
Oct. 28, 2009, 123 Stat. 2720.)
REFERENCES IN TEXT
The date of enactment of the National Defense Authorization Act for Fiscal Year 2010, referred to in subsec. (b)(3)(A), is the date of enactment of Pub. L. 111–84,
which was approved Oct. 28, 2009.
AMENDMENTS
2009—Subsec. (b)(3). Pub. L. 111–84 added par. (3).
2006—Subsec. (f). Pub. L. 109–304 substituted ‘‘section
55302(a), 55304, 55305, or 55314 of this title, section 2631 of
title 10’’ for ‘‘section 2631 of title 10, United States
Code, the Act of March 26, 1934 (46 U.S.C. App. 1241–1),
section 901(a), 901(b), or 901b of the Merchant Marine
Act, 1936 (46 U.S.C. App. 1241(a), 1241(b), or 1241f)’’ in introductory provisions and ‘‘sections 55302(a), 55304,
55305, and 55314 of this title and section 2631 of title 10’’
for ‘‘section 2631 of title 10, United States Code, the Act
of March 26, 1934 (46 U.S.C. App. 1241–1), and sections
901(a), 901(b), and 901b of the Merchant Marine Act, 1936
(46 U.S.C. App. 1241(a), 1241(b), and 1241b)’’ in par. (2).

§ 53108. Regulatory relief
(a) OPERATION IN FOREIGN COMMERCE.—A contractor for a vessel included in an operating
agreement under this chapter may operate the
vessel in the foreign commerce of the United
States without restriction.
(b) OTHER RESTRICTIONS.—The restrictions of
section 55305(a) of this title concerning the
building, rebuilding, or documentation of a vessel in a foreign country shall not apply to a vessel for any day the operator of that vessel is receiving payments for operation of that vessel
under an operating agreement under this chapter.
EQUIPMENT.—The
(c)
TELECOMMUNICATIONS
telecommunications and other electronic equipment on an existing vessel that is redocumented
under the laws of the United States for operation under an operating agreement under this
chapter shall be deemed to satisfy all Federal
Communications Commission equipment certification requirements, if—
(1) such equipment complies with all applicable international agreements and associated
guidelines as determined by the country in
which the vessel was documented immediately
before becoming documented under the laws of
the United States;
(2) that country has not been identified by
the Secretary as inadequately enforcing international regulations as to that vessel; and
(3) at the end of its useful life, such equipment will be replaced with equipment that
meets Federal Communications Commission
equipment certification standards.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1816; amended
Pub. L. 109–304, § 13(a)(7), Oct. 6, 2006, 120 Stat.
1701.)
AMENDMENTS
2006—Subsec. (b). Pub. L. 109–304 substituted ‘‘section
55305(a) of this title’’ for ‘‘section 901(b)(1) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b)(1))’’.

Page 321

§ 53109. Special rule regarding age of participating fleet vessel
Any age restriction under section 53102(b)(3) or
53106(c)(3) shall not apply to a participating fleet
vessel during the 30-month period beginning on
the date the vessel begins operating under an
operating agreement under this title, if the Secretary determines that the contractor for the
vessel has entered into an arrangement to obtain and operate under the operating agreement
for the participating fleet vessel a replacement
vessel that, upon commencement of such operation, will be eligible to be included in the Fleet
under section 53102(b).
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1817.)
§ 53110. Regulations
The Secretary and the Secretary of Defense
may each prescribe rules as necessary to carry
out their respective responsibilities under this
chapter.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1817.)
INTERIM RULES
Pub. L. 108–136, div. C, title XXXV, § 3533, Nov. 24,
2003, 117 Stat. 1818, provided that: ‘‘The Secretary of
Transportation and the Secretary of Defense may each
prescribe interim rules necessary to carry out their respective responsibilities under this subtitle [subtitle C
(§§ 3531–3537) of title XXXV of div. C of Pub. L. 108–136,
enacting this chapter, amending former section 12102 of
this title and sections 808 and 1162 of the former Appendix to this title, repealing sections 1187 to 1187e and
1222 of the former Appendix to this title, enacting provisions set out as a note under section 53101 of this
title, and amending provisions set out as a note under
section 1187 of the former Appendix to this title] and
the amendments made by this subtitle. For this purpose, the Secretaries are excepted from compliance
with the notice and comment requirements of section
553 of title 5, United States Code. All interim rules prescribed under the authority of this section that are not
earlier superseded by final rules shall expire no later
than 270 days after the effective date of this subtitle
[see Effective Date note set out under section 53101 of
this title].’’

§ 53111. Authorization of appropriations
There are authorized to be appropriated for
payments under section 53106, to remain available until expended—
(1) $156,000,000 for each of fiscal years 2006,
2007, and 2008;
(2) $174,000,000 for each of fiscal years 2009,
2010, and 2011; and
(3) $186,000,000 for each fiscal year thereafter
through fiscal year 2025.
(Added Pub. L. 108–136, div. C, title XXXV,
§ 3531(a), Nov. 24, 2003, 117 Stat. 1817; Pub. L.
111–383, div. C, title XXXV, § 3502(3), Jan. 7, 2011,
124 Stat. 4518.)

Sec.

53302.
53303.
53304.
53305.
53306.
53307.
53308.
53309.
53310.
53311.
53312.

Authority for construction reserve funds.
Persons eligible to establish funds.
Vessel ownership.
Eligible fund deposits.
Recognition of gain for tax purposes.
Basis for determining gain or loss and for depreciating new vessels.
Order and proportions of deposits and withdrawals.
Accumulation of deposits.
Obligation of deposits and period for construction of certain vessels.
Taxation of deposits on failure of conditions.
Assessment and collection of deficiency tax.

§ 53301. Definitions
(a) IN GENERAL.—In this chapter:
(1) CONSTRUCTION CONTRACT.—The term
‘‘construction contract’’ includes, for a taxpayer constructing a new vessel in a shipyard
owned by that taxpayer, an agreement between the taxpayer and the Secretary of
Transportation for that construction containing provisions the Secretary considers advisable to carry out this chapter.
(2) NEW VESSEL.—The term ‘‘new vessel’’
means—
(A) a vessel—
(i) constructed in the United States after
December 31, 1939, constructed with a construction-differential subsidy under title V
of the Merchant Marine Act, 1936, or constructed with financing or a financing
guarantee under chapter 537 or 575 of this
title;
(ii) documented or agreed with the Secretary to be documented under the laws of
the United States; and
(iii)(I) of a type, size, and speed that the
Secretary determines is suitable for use on
the high seas or Great Lakes in carrying
out this subtitle, but not less than 2,000
gross tons or less than 12 knots speed unless the Secretary certifies in each case
that a vessel of lesser tonnage or speed is
desirable for use by the United States Government in case of war or national emergency; or
(II) constructed to replace a vessel
bought or requisitioned by the Government; and
(B) a vessel reconstructed or reconditioned
for use only on the Great Lakes, including
the Saint Lawrence River and Gulf, if the
Secretary finds that the reconstruction or
reconditioning will promote the objectives
of this subtitle.
(b) ADDITIONAL TAX-RELATED TERMS.—Other
terms used in this chapter have the same meaning as in chapter 1 of the Internal Revenue Code
of 1986 (26 U.S.C. ch. 1).
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1587.)

AMENDMENTS
2011—Par. (3). Pub. L. 111–383 substituted ‘‘2025’’ for
‘‘2015’’.

CHAPTER 533—CONSTRUCTION RESERVE
FUNDS
Sec.

53301.

§ 53301

TITLE 46—SHIPPING

Definitions.

HISTORICAL AND REVISION NOTES
Revised
Section
53301(a)(1) ..

Source (U.S. Code)
46 App.:1161(n).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(n), as added Dec.
23, 1944, ch. 714, § 2, 58
Stat. 920; Pub. L. 97–31,
§ 12(92)(A), Aug. 6, 1981, 95
Stat. 161.

§ 53302

TITLE 46—SHIPPING

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section

Source (U.S. Code)

53301(a)
(2)(A).

46 App.:1161(a).

53301(a)
(2)(B).

46 App.:1161(o).

53301(b) ......

46 App.:1161(m).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(a), as added Oct.
10, 1940, ch. 849, 54 Stat.
1106;
Pub.
L.
97–31,
§ 12(92)(A), Aug. 6, 1981, 95
Stat. 161.
June 29, 1936, ch. 858, title
V, § 511(o), as added July
17, 1952, ch. 939, § 14, 66
Stat. 764; Pub. L. 97–31,
§ 12(92)(A), Aug. 6, 1981, 95
Stat. 161.
June 29, 1936, ch. 858, title
V, § 511(m), as added Oct.
10, 1940, ch. 849, 54 Stat.
1108.

In subsection (a)(2)(A)(i), the words ‘‘constructed
with a construction-differential subsidy under title V
of the Merchant Marine Act, 1936, or constructed with
financing or a financing guarantee under chapter 537 or
575 of this title’’ are substituted for ‘‘the construction
of which has been financed under subchapters V or VII
of this chapter, or the construction of which has been
aided by a mortgage insured under subchapter XI of
this chapter’’ because of the reorganization of the material and the omission from the revised title of the
provisions relating to the construction-differential subsidy program.
Subsection (a)(2)(B) is substituted for the source provision to state more directly that a vessel described in
the source provision is a new vessel for purposes of this
chapter.
REFERENCES IN TEXT
The Merchant Marine Act, 1936, referred to in subsec.
(a)(2)(A)(i), is act June 29, 1936, ch. 858, 49 Stat. 1985.
Title V of the Act enacted provisions set out as notes
under section 53101 of this title. For complete classification of this Act to the Code, see Short Title of 1936
Amendment note set out under section 101 of this title
and Tables.

Page 322

§ 53303. Persons eligible to establish funds
A construction reserve fund may be established by a citizen of the United States that—
(1) is operating a vessel in the foreign or domestic commerce of the United States or in
the fisheries;
(2) owns, in whole or in part, a vessel being
operated in the foreign or domestic commerce
of the United States or in the fisheries;
(3) was operating a vessel in the foreign or
domestic commerce of the United States or in
the fisheries when it was bought or requisitioned by the United States Government;
(4) owned, in whole or in part, a vessel being
operated in the foreign or domestic commerce
of the United States or in the fisheries when it
was bought or requisitioned by the Government; or
(5) had acquired or was having constructed a
vessel to operate in the foreign or domestic
commerce of the United States or in the fisheries when it was bought or requisitioned by
the Government.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1587.)
HISTORICAL AND REVISION NOTES
Revised
Section
53303 ..........

Source (U.S. Code)
46 App.:1161(b) (1st
sentence words
between 6th and
10th commas).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(b) (1st sentence
words between 6th and
10th commas), as added
Oct. 10, 1940, ch. 849, 54
Stat. 1106; June 17, 1943,
ch. 130, subdiv. (a), 57
Stat. 157; July 17, 1952, ch.
939, § 9, 66 Stat. 762.

§ 53302. Authority for construction reserve funds
(a) GENERAL AUTHORITY.—An eligible person
under section 53303 of this title may establish a
construction reserve fund for the construction,
reconstruction, reconditioning, or acquisition of
a new vessel or for other purposes authorized by
this chapter.
(b) APPLICATION OF CERTAIN LAWS AND REGULATIONS.—The fund shall be established, maintained, expended, and used as provided by this
chapter and regulations prescribed jointly by
the Secretary of Transportation and the Secretary of the Treasury.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1587.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

53302(a) ......

46 App.:1161(b) (1st
sentence words
before 6th comma
and between 10th
and 16th commas).

June 29, 1936, ch. 858, title
V, § 511(b) (1st sentence
words before 6th comma
and between 10th and 16th
commas, last sentence), as
added Oct. 10, 1940, ch. 849,
54 Stat. 1106; June 17, 1943,
ch. 130, subdiv. (a), 57
Stat. 157; July 17, 1952, ch.
939, § 9, 66 Stat. 762; Pub.
L. 97–31, § 12(92)(A), Aug. 6,
1981, 95 Stat. 161.

53302(b) ......

46 App.:1161(b) (last
sentence).

In subsection (a), the words ‘‘necessary to carrying
out the policy set forth in section 1101 of this Appendix’’ are omitted as unnecessary.

§ 53304. Vessel ownership
In this chapter, a vessel is deemed to be constructed or acquired by a taxpayer if constructed or acquired by a corporation when the
taxpayer owns at least 95 percent of each class
of stock of the corporation.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1588.)
HISTORICAL AND REVISION NOTES
Revised
Section
53304 ..........

Source (U.S. Code)
46 App.:1161(l).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(l), as added Oct. 10,
1940, ch. 849, 54 Stat. 1108.

§ 53305. Eligible fund deposits
A construction reserve fund may include deposits of—
(1) the proceeds from the sale of a vessel;
(2) indemnities for the loss of a vessel;
(3) earnings from the operation of a documented vessel and from services incident to
the operation; and
(4) interest or other amounts accrued on deposits in the fund.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1588.)

Page 323
HISTORICAL AND REVISION NOTES
Revised
Section
53305 ..........

§ 53308

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1161(b) (1st
sentence words
after 16th
comma).

HISTORICAL AND REVISION NOTES

Source (Statutes at Large)

Revised
Section

June 29, 1936, ch. 858, title
V, § 511(b) (1st sentence
words after 16th comma),
as added Oct. 10, 1940, ch.
849, 54 Stat. 1106; June 17,
1943, ch. 130, subdiv. (a), 57
Stat. 157; July 17, 1952, ch.
939, § 9, 66 Stat. 762.

53306 ..........

Source (U.S. Code)
46 App.:1161(c).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(c), as added Oct.
10, 1940, ch. 849, 54 Stat.
1106; June 17, 1943, ch. 130,
subdiv. (b), 57 Stat. 157;
Dec. 23, 1944, ch. 714, § 1, 58
Stat. 920; July 17, 1952, ch.
939, § 10, 66 Stat. 762.

In paragraph (3), the words ‘‘documented vessel’’ are
substituted for ‘‘vessels documented under the laws of
the United States’’ because of the definition of ‘‘documented vessel’’ in chapter 1 of the revised title.
In paragraph (4), the words ‘‘interest or other
amounts accrued on deposits in the fund’’ are substituted for ‘‘receipts, in the form of interest or otherwise, with respect to amounts previously deposited’’ for
clarity and to eliminate unnecessary words.

In subsection (c)(2), the words ‘‘in any taxable year
beginning after December 31, 1939’’ are omitted as obsolete. The words ‘‘prescribed by the Secretary of the
Treasury’’ are substituted for ‘‘prescribed by the Commissioner of Internal Revenue with the approval of the
Secretary of the Treasury’’ for consistency in the revised title and with other titles of the United States
Code. See 26 U.S.C. 7805.

§ 53306. Recognition of gain for tax purposes

§ 53307. Basis for determining gain or loss and
for depreciating new vessels

(a) DEFINITIONS.—In this section, the terms
‘‘net proceeds’’ and ‘‘net indemnity’’ mean the
sum of—
(1) the adjusted basis of the vessel; and
(2) the amount of gain the taxpayer would
recognize without regard to this section.
(b) RECOGNITION OF GAIN.—In computing net
income under the income or excess profits tax
laws of the United States, a taxpayer does not
recognize a gain on the sale or the actual or constructive total loss of a vessel if the taxpayer—
(1) deposits an amount equal to the net proceeds of the sale or the net indemnity for the
loss in a construction reserve fund within 60
days after receiving the payment of proceeds
or indemnity; and
(2) elects under this section not to recognize
the gain.
(c) WHEN ELECTION MUST BE MADE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the taxpayer must make the election referred to in subsection (b) in the taxpayer’s income tax return for the taxable year
in which the gain was realized.
(2) RECEIPT AFTER TAXABLE YEAR.—If the vessel is bought or requisitioned by the United
States Government, or is lost, and the taxpayer receives payment for the vessel or indemnity for the loss from the Government
after the end of the taxable year in which it
was bought, requisitioned, or lost, the taxpayer must make the election referred to in
subsection (b) within 60 days after receiving
the payment or indemnity, on a form prescribed by the Secretary of the Treasury.

Under the income or excess profits tax laws of
the United States, the basis for determining a
gain or loss and for depreciation of a new vessel
constructed, reconstructed, reconditioned, or acquired by the taxpayer, or for which purchasemoney indebtedness is liquidated as provided in
section 53310 of this title, with amounts from a
construction reserve fund, shall be reduced by
that part of the deposits in the fund expended in
the construction, reconstruction, reconditioning, acquisition, or liquidation of purchasemoney indebtedness of the new vessel that represents a gain not recognized for tax purposes
under section 53306 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1589.)
HISTORICAL AND REVISION NOTES
Revised
Section
53307 ..........

Source (U.S. Code)
46 App.:1161(d).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(d), as added Oct.
10, 1940, ch. 849, 54 Stat.
1106; July 17, 1952, ch. 939,
§ 11, 66 Stat. 763.

§ 53308. Order and proportions of deposits and
withdrawals
In this chapter—
(1) if the net proceeds of a sale or the net indemnity for a loss is deposited in more than
one deposit, the amount consisting of the gain
shall be deemed to be deposited first;
(2) amounts expended, obligated, or otherwise withdrawn shall be applied against the
amounts deposited in the fund in the order of
deposit; and

(d) EFFECT OF STATUTE OF LIMITATION.—If the
taxpayer makes an election under subsection
(c)(2), and computation or recomputation under
this section is otherwise allowable but is prevented by a statute of limitation on the date the
election is made or within 6 months thereafter,
the computation or recomputation nevertheless
shall be made notwithstanding the statute if the
taxpayer files a claim for the computation or recomputation within 6 months after the date of
making the election.

(3) if a deposit consists in part of a gain not
recognized under section 53306 of this title,
any expenditure, obligation, or withdrawal applied against that deposit shall be deemed to
be a gain in the proportion that the part of the
deposit consisting of a gain bears to the total
amount of the deposit.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1588.)

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1589.)

§ 53309

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
53308 ..........

Source (U.S. Code)
46 App.:1161(e).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(e), as added Oct.
10, 1940, ch. 849, 54 Stat.
1107.

§ 53309. Accumulation of deposits
For any taxable year, amounts on deposit in a
construction reserve fund on the last day of the
taxable year, for which the requirements of section 53310 of this title have been satisfied (to the
extent they apply on the last day of the taxable
year), are deemed to have been retained for the
reasonable needs of the business within the
meaning of section 537(a) of the Internal Revenue Code of 1986 (26 U.S.C. 537(a)).

Page 324

least 5 percent of the construction of the first
vessel) must be completed within 6 months
after the date of the construction contract (or
within the period of an extension under subsection (c)), as estimated by the Secretary and
certified by the Secretary to the Secretary of
the Treasury; and
(2) construction under the contract must be
completed with reasonable dispatch thereafter.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1589.)

(c) EXTENSIONS.—The Secretary of Transportation may grant extensions of the period within
which the deposits must be expended or obligated or within which the construction must
have progressed to the extent of 5 percent completion under this section. However, the extensions may not be for a total of more than 2 years
for the expenditure or obligation of deposits or
one year for the progress of construction.

HISTORICAL AND REVISION NOTES

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1589.)

Revised
Section
53309 ..........

Source (U.S. Code)
46 App.:1161(f).

HISTORICAL AND REVISION NOTES

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(f), as added Oct.
10, 1940, ch. 849, 54 Stat.
1107.

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

53310(a) ......

46 App.:1161(g) (less
(1)(B)).

June 29, 1936, ch. 858, title
V, § 511(g), (h), as added
Oct. 10, 1940, ch. 849, 54
Stat. 1107; June 17, 1943,
ch. 130, subdivs. (c), (d), 57
Stat. 158; July 17, 1952, ch.
939, §§ 12, 13(a), 66 Stat.
763; Pub. L. 86–237, § 1,
Sept. 8, 1959, 73 Stat. 471;
Pub. L. 87–303, § 3, Sept. 26,
1961, 75 Stat. 661; Pub. L.
87–782, § 1, Oct. 10, 1962, 76
Stat. 796; Pub. L. 88–227,
§ 1, Dec. 23, 1963, 77 Stat.
470; Pub. L. 88–595, § 1,
Sept. 12, 1964, 78 Stat. 943;
Pub. L. 97–31, § 12(92), Aug.
6, 1981, 95 Stat. 161.

53310(b) ......
53310(c) ......

46 App.:1161(g)(1)(B).
46 App.:1161(h).

The words ‘‘are deemed to have been retained for the
reasonable needs of the business within the meaning of
section 537(a) of the Internal Revenue Code of 1986 (26
U.S.C. 537(a))’’ are substituted for ‘‘shall not constitute
an accumulation of earnings or profits within the
meaning of section 102 of the Internal Revenue Code’’
because section 102 of the Internal Revenue Code of 1939
has been superseded by part 1 of subchapter G of chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. 531
et seq.). See also 46 C.F.R. § 287.16 (2003).

§ 53310. Obligation of deposits and period for
construction of certain vessels
(a) APPLICATION OF SECTIONS 53306 AND 53309.—
Sections 53306 and 53309 of this title apply to a
deposit in a construction reserve fund only if,
within 3 years after the date of the deposit (and
any extension under subsection (c))—
(1)(A) a contract is made for the construction or acquisition of a new vessel or, with the
approval of the Secretary of Transportation,
for a part interest in a new vessel or for the reconstruction or reconditioning of a new vessel;
(B) the deposit is expended or obligated for
expenditure under that contract;
(C) at least 12.5 percent of the construction
or contract price of the vessel is paid or irrevocably committed for payment; and
(D) the plans and specifications for the vessel are approved by the Secretary to the extent the Secretary considers necessary; or
(2) the deposit is expended or obligated for
expenditure for the liquidation of existing or
subsequently incurred purchase-money indebtedness to a person not a parent company of, or
a company affiliated or associated with, the
mortgagor on a new vessel.
(b) ADDITIONAL REQUIREMENTS FOR CERTAIN
VESSELS.—In addition to the requirements of
subsection (a)(1), for a vessel not constructed
under a construction-differential subsidy contract or not bought from the Secretary of Transportation—
(1) at least 5 percent of the construction (or,
if the contract covers more than one vessel, at

In this section, the language about joint regulations
in 46 App. U.S.C. 1161(g) and (h) is omitted as unnecessary because of section 53302(b) of the revised title.
In subsection (a), the words ‘‘(i) two years from the
date of deposit or the date of any extension thereof
which may be granted by the Secretary of Transportation pursuant to the provisions of subsection (h) of
this section, in the case of deposits made prior to the
date on which these amendatory provisions become effective, or’’ in 46 App. U.S.C. 1161(g)(1) and (2) are omitted as obsolete. In paragraph (1)(A), the words ‘‘or, with
the approval of the Secretary of Transportation, for a
part interest in a new vessel or for the reconstruction
or reconditioning of a new vessel’’ are substituted for
‘‘(or in the discretion of the Secretary of Transportation, for a part interest therein), or, with the approval of the Secretary of Transportation, for the reconstruction or reconditioning of a new vessel or vessels’’ to eliminate unnecessary words.
In subsection (c), the proviso in 46 App. U.S.C. 1161(h)
is omitted as obsolete.

§ 53311. Taxation of deposits on failure of conditions
A deposited gain, if otherwise taxable income
under the law applicable to the taxable year in
which the gain was realized, shall be included in
gross income for that taxable year, except for
purposes of the declared value excess profits tax
and the capital stock tax, if—
(1) the deposited gain is not expended or obligated within the appropriate period under
section 53310 of this title;

Page 325

TITLE 46—SHIPPING

(2) the deposited gain is withdrawn before
the end of that period;
(3) the construction related to that deposited gain has not progressed to the extent of 5
percent of completion within the appropriate
period under section 53310 of this title; or
(4) the Secretary of Transportation finds and
certifies to the Secretary of the Treasury
that, for causes within the control of the taxpayer, the entire construction related to that
deposited gain is not completed with reasonable dispatch.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1590.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53311 ..........

46 App.:1161(i).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(i), as added Oct.
10, 1940, ch. 849, 54 Stat.
1107; July 17, 1952, ch. 939,
§ 13(b), 66 Stat. 764; Pub. L.
97–31, § 12(92)(A), Aug. 6,
1981, 95 Stat. 161.

The last sentence of 46 App. U.S.C. 1161(i) is omitted
as obsolete.

§ 53312. Assessment and collection of deficiency
tax
Notwithstanding any other provision of law, a
deficiency in tax for a taxable year resulting
from the inclusion of an amount in gross income
as provided by section 53311 of this title, and the
amount to be treated as a deficiency under section 53311 instead of as an adjustment for the declared value excess profits tax, may be assessed
or a civil action may be brought to collect the
deficiency without assessment, at any time. Interest on a deficiency or amount to be treated as
a deficiency does not begin until the date the deposited gain or part of the deposited gain in
question is required to be included in gross income under section 51111.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1590.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53312 ..........

46 App.:1161(j).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 511(j), as added Oct.
10, 1940, ch. 849, 54 Stat.
1108.

CHAPTER 535—CAPITAL CONSTRUCTION
FUNDS
Sec.

53501.
53502.
53503.
53504.
53505.
53506.
53507.
53508.
53509.
53510.
53511.
53512.
53513.
53514.
53515.

Definitions.
Regulations.
Establishing a capital construction fund.
Deposits and withdrawals.
Ceiling on deposits.
Investment and fiduciary requirements.
Nontaxation of deposits.
Separate accounts within a fund.
Qualified withdrawals.
Tax treatment of qualified withdrawals and
basis of property.
Tax treatment of nonqualified withdrawals.
FIFO and LIFO withdrawals.
Corporate reorganizations and partnership
changes.
Relationship of old fund to new fund.
Records and reports.

§ 53501

Sec.

53516.
53517.

Termination of agreement after change in
regulations.
Reports.

§ 53501. Definitions
In this chapter:
(1) AGREEMENT VESSEL.—The term ‘‘agreement vessel’’ means—
(A) an eligible vessel or a qualified vessel
that is subject to an agreement under this
chapter; and
(B) a barge or container that is part of the
complement of a vessel described in subparagraph (A) if provided for in the agreement.
(2) ELIGIBLE VESSEL.—The term ‘‘eligible
vessel’’ means—
(A) a vessel—
(i) constructed in the United States (and,
if reconstructed, reconstructed in the
United States), constructed outside the
United States but documented under the
laws of the United States on April 15, 1970,
or constructed outside the United States
for use in the United States foreign trade
pursuant to a contract made before April
15, 1970;
(ii) documented under the laws of the
United States; and
(iii) operated in the foreign or domestic
trade of the United States or in the fisheries of the United States; and
(B) a commercial fishing vessel—
(i) constructed in the United States and,
if reconstructed, reconstructed in the
United States;
(ii) of at least 2 net tons but less than 5
net tons;
(iii) owned by a citizen of the United
States;
(iv) having its home port in the United
States; and
(v) operated in the commercial fisheries
of the United States.
(3) JOINT REGULATIONS.—The term ‘‘joint
regulations’’ means regulations prescribed
jointly by the Secretary and the Secretary of
the Treasury under section 53502(b) of this
title.
(4) NONCONTIGUOUS TRADE.—The term ‘‘noncontiguous trade’’ means—
(A) trade between—
(i) one of the contiguous 48 States; and
(ii) Alaska, Hawaii, Puerto Rico, or an
insular territory or possession of the
United States; and
(B) trade between—
(i) a place in Alaska, Hawaii, Puerto
Rico, or an insular territory or possession
of the United States; and
(ii) another place in Alaska, Hawaii,
Puerto Rico, or an insular territory or possession of the United States.
(5) QUALIFIED VESSEL.—The term ‘‘qualified
vessel’’ means—
(A) a vessel—
(i) constructed in the United States (and,
if reconstructed, reconstructed in the
United States), constructed outside the

§ 53502

TITLE 46—SHIPPING

United States but documented under the
laws of the United States on April 15, 1970,
or constructed outside the United States
for use in the United States foreign trade
pursuant to a contract made before April
15, 1970;
(ii) documented under the laws of the
United States; and
(iii) agreed, between the Secretary and
the person maintaining the capital construction fund established under section
53503 of this title, to be operated in the
United States foreign, Great Lakes, noncontiguous domestic, or short sea transportation trade trade 1 or in the fisheries of
the United States; and
(B) a commercial fishing vessel—
(i) constructed in the United States and,
if reconstructed, reconstructed in the
United States;
(ii) of at least 2 net tons but less than 5
net tons;
(iii) owned by a citizen of the United
States;
(iv) having its home port in the United
States; and
(v) operated in the commercial fisheries
of the United States.
(6) SECRETARY.—The term ‘‘Secretary’’
means—
(A) the Secretary of Commerce with respect to an eligible vessel or a qualified vessel operated or to be operated in the fisheries of the United States; and
(B) the Secretary of Transportation with
respect to other vessels.
(7) 2 SHORT SEA TRANSPORTATION TRADE.—The
term ‘‘short sea transportation trade’’ means
the carriage by vessel of cargo—
(A) that is—
(i) contained in intermodal cargo containers and loaded by crane on the vessel;
or
(ii) loaded on the vessel by means of
wheeled technology; and
(B) that is—
(i) loaded at a port in the United States
and unloaded either at another port in the
United States or at a port in Canada located in the Great Lakes Saint Lawrence
Seaway System; or
(ii) loaded at a port in Canada located in
the Great Lakes Saint Lawrence Seaway
System and unloaded at a port in the
United States.
(7) 2 UNITED STATES FOREIGN TRADE.—The
term ‘‘United States foreign trade’’ includes
those areas in domestic trade in which a vessel
built with a construction-differential subsidy
is allowed to operate under the first sentence
of section 506 of the Merchant Marine Act,
1936.
(8) VESSEL.—The term ‘‘vessel’’ includes—
(A) cargo handling equipment that the
Secretary determines is intended for use primarily on the vessel; and
1 So
2 So

in original.
in original. Two pars. (7) have been enacted.

Page 326

(B) an ocean-going towing vessel, an
ocean-going barge, or a comparable towing
vessel or barge operated on the Great Lakes.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1591;
Pub. L. 110–140, title XI, § 1122(a), Dec. 19, 2007,
121 Stat. 1762.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53501(1) ......

46 App.:1177(b)(3),
(k)(3).

53501(2) ......

46 App.:1177(k)(1).
46 App.:1177–1.

53501(3) ......
53501(4) ......
53501(5) ......

53501(6) ......
53501(7) ......
53501(8) ......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(b)(3), (k)(1)–(3),
(5)–(9), 49 Stat. 2005; June
23, 1938, ch. 600, §§ 23–28, 52
Stat. 960; Aug. 4, 1939, ch.
417, § 10, 53 Stat. 1185; July
17, 1952, ch. 939, §§ 17–19, 66
Stat. 764; Pub. L. 85–637,
Aug. 14, 1958, 72 Stat. 216;
Pub. L. 86–518, § 1, June 12,
1960, 74 Stat. 216; Pub. L.
87–45, § 6, May 27, 1961, 75
Stat. 91; Pub. L. 87–271,
Sept. 21, 1961, 75 Stat. 570;
restated Pub. L. 91–469,
§ 21(a), Oct. 21, 1970, 84
Stat. 1027, 1031, 1032; Pub.
L. 93–116, Oct. 1, 1973, 87
Stat. 421; Pub. L. 97–31,
§ 12(97), Aug. 6, 1981, 95
Stat. 162.
Pub. L. 94–455, title VIII,
§ 807, Oct. 4, 1976, 90 Stat.
1606.

46 App.:1177(k)(6).
46 App.:1177(k)(8).
46 App.:1177(k)(1)
(last sentence),
(2).
46 App.:1177–1.
46 App.:1177(k)(9).
46 App.:1177(k)(5).
46 App.:1177(k)(7).

The codification of the laws in this chapter is not intended to alter the existing jurisdictional relationship
of the Secretaries who administer those laws.
In paragraph (2)(A)(iii), the word ‘‘trade’’ is substituted for ‘‘commerce’’ for consistency in the chapter.
REFERENCES IN TEXT
Section 506 of the Merchant Marine Act, 1936, referred
to in par. (7), is section 506 of act June 29, 1936, ch. 858,
49 Stat. 1985, which is set out as a note under section
53101 of this title.
AMENDMENTS
2007—Par. (5)(A)(iii). Pub. L. 110–140, § 1122(a)(1), substituted ‘‘noncontiguous domestic, or short sea transportation trade’’ for ‘‘or noncontiguous domestic’’.
Par. (7). Pub. L. 110–140, § 1122(a)(2), added par. (7) relating to short sea transportation trade.
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Pub. L. 110–140 effective on the date
that is 1 day after Dec. 19, 2007, see section 1601 of Pub.
L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.

§ 53502. Regulations
(a) IN GENERAL.—Except as provided in subsection (b), the Secretary shall prescribe regulations to carry out this chapter.
(b) TAX LIABILITY.—The Secretary and the
Secretary of the Treasury shall prescribe joint
regulations for the determination of tax liability under this chapter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1593.)

Page 327
HISTORICAL AND REVISION NOTES
Revised
Section
53502 ..........

Source (U.S. Code)
46 App.:1177(l) (2d
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(l) (2d sentence), 49
Stat. 2005; June 23, 1938,
ch. 600, §§ 23–28, 52 Stat.
960; Aug. 4, 1939, ch. 417,
§ 10, 53 Stat. 1185; July 17,
1952, ch. 939, §§ 17–19, 66
Stat. 764; Pub. L. 85–637,
Aug. 14, 1958, 72 Stat. 216;
Pub. L. 86–518, § 1, June 12,
1960, 74 Stat. 216; Pub. L.
87–45, § 6, May 27, 1961, 75
Stat. 91; Pub. L. 87–271,
Sept. 21, 1961, 75 Stat. 570;
restated Pub. L. 91–469,
§ 21(a), Oct. 21, 1970, 84
Stat. 1032; Pub. L. 97–31,
§ 12(97)(A), Aug. 6, 1981, 95
Stat. 162.

Subsection (a) is added for clarity because various
provisions of the source language for this chapter
imply that the Secretary is to prescribe regulations individually (except for regulations affecting a determination of tax liability). See, e.g., 46 App. U.S.C.
1177(a) (last sentence), (f)(1) (last sentence), and (l) (last
sentence).
In subsection (b), the words ‘‘not inconsistent with
the foregoing provisions of this section, as may be necessary or appropriate’’ are omitted as surplus.

§ 53503. Establishing a capital construction fund
(a) IN GENERAL.—A citizen of the United
States owning or leasing an eligible vessel may
make an agreement with the Secretary under
this chapter to establish a capital construction
fund for the vessel.
(b) ALLOWABLE PURPOSE.—The purpose of the
agreement shall be to provide replacement vessels, additional vessels, or reconstructed vessels,
built in the United States and documented
under the laws of the United States, for operation in the United States foreign, Great Lakes,
noncontiguous domestic, or short sea transportation trade or in the fisheries of the United
States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1593;
Pub. L. 110–140, title XI, § 1122(b), Dec. 19, 2007,
121 Stat. 1762.)
HISTORICAL AND REVISION NOTES
Revised
Section

§ 53505

TITLE 46—SHIPPING

Source (U.S. Code)

53503(a) ......

46 App.:1177(a) (1st
sentence).

53503(b) ......

46 App.:1177(a) (2d
sentence related
to purpose).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(a) (1st sentence),
(2d sentence related to
purpose), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1026; Pub.
L. 97–31, § 12(97)(A), Aug. 6,
1981, 95 Stat. 162.

AMENDMENTS
2007—Subsec. (b). Pub. L. 110–140 substituted ‘‘noncontiguous domestic, or short sea transportation
trade’’ for ‘‘or noncontiguous domestic trade’’.

EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Pub. L. 110–140 effective on the date
that is 1 day after Dec. 19, 2007, see section 1601 of Pub.
L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.

§ 53504. Deposits and withdrawals
(a) REQUIRED DEPOSITS.—An agreement to establish a capital construction fund shall provide
for the deposit in the fund of the amounts
agreed to be appropriate to provide for qualified
withdrawals under section 53509 of this title.
(b) APPLICABLE REQUIREMENTS.—Deposits in
and withdrawals from the fund are subject to
the requirements included in the agreement or
prescribed by the Secretary by regulation. However, the Secretary may not require a person to
deposit in the fund for a taxable year more than
50 percent of that portion of the person’s taxable
income for that year (as determined under section 53505(a)(1) of this title) that is attributable
to the operation of an agreement vessel.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1593.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53504(a) ......

46 App.:1177(a) (2d
sentence related
to deposits).

53504(b) ......

46 App.:1177(a) (last
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(a) (2d sentence related to deposits), (last
sentence), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1026; Pub.
L. 97–31, § 12(97)(A), Aug. 6,
1981, 95 Stat. 162.

In subsection (a), the words ‘‘agreed to be appropriate’’ are substituted for ‘‘agreed upon as necessary
or appropriate’’ to eliminate unnecessary words.

§ 53505. Ceiling on deposits
(a) MAXIMUM DEPOSITS.—The amount deposited in a capital construction fund for a taxable
year may not exceed the sum of—
(1) that portion of the taxable income of the
owner or lessee for the taxable year (computed
under chapter 1 of the Internal Revenue Code
of 1986 (26 U.S.C. ch. 1) but without regard to
the carryback of net operating loss or net capital loss or this chapter) that is attributable
to the operation of agreement vessels in the
foreign or domestic trade of the United States
or in the fisheries of the United States;
(2) the amount allowable as a deduction
under section 167 of such Code (26 U.S.C. 167)
for the taxable year for agreement vessels;
(3) if the transaction is not taken into account for purposes of paragraph (1), the net
proceeds (as defined in joint regulations) from
the disposition of an agreement vessel or from
insurance or indemnity attributable to an
agreement vessel; and
(4) the receipts from the investment or reinvestment of amounts held in the fund.

§ 53506

TITLE 46—SHIPPING

(b) REDUCTIONS FOR LESSEES.—For a lessee,
the maximum amount that may be deposited for
an agreement vessel under subsection (a)(2) for
any period shall be reduced by any amount the
owner is required or permitted, under the capital construction fund agreement, to deposit for
that period for the vessel under subsection
(a)(2).

Page 328
HISTORICAL AND REVISION NOTES

Revised
Section
53506 ..........

Source (U.S. Code)
46 App.:1177(c).

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1593.)
HISTORICAL AND REVISION NOTES
Revised
Section
53505 ..........

Source (U.S. Code)
46 App.:1177(b)(1),
(2).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(b)(1), (2), 49 Stat.
2005; June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1027.

In subsection (a)(1), the word ‘‘trade’’ is substituted
for ‘‘commerce’’ for consistency in the chapter.

§ 53506. Investment and fiduciary requirements
(a) IN GENERAL.—Amounts in a capital construction fund shall be kept in the depository
specified in the agreement and shall be subject
to trustee and other fiduciary requirements prescribed by the Secretary. Except as provided in
subsection (b), amounts in the fund may be invested only in interest-bearing securities approved by the Secretary.
(b) STOCK INVESTMENTS.—
(1) IN GENERAL.—With the approval of the
Secretary, an agreed percentage (but not more
than 60 percent) of the assets of the fund may
be invested in the stock of domestic corporations that—
(A) is fully listed and registered on an exchange registered with the Securities and
Exchange Commission as a national securities exchange; and
(B) would be acquired by a prudent investor seeking a reasonable income and the
preservation of capital.
(2) PREFERRED STOCK.—The preferred stock
of a corporation is deemed to satisfy the requirements of this subsection, even though it
may not be registered and listed because it is
nonvoting stock, if the common stock of the
corporation satisfies the requirements and the
preferred stock otherwise would satisfy the requirements.
(c) MAINTAINING AGREED PERCENTAGE.—If at
any time the fair market value of the stock in
the fund is more than the agreed percentage of
the assets in the fund, any subsequent investment of amounts deposited in the fund, and any
subsequent withdrawal from the fund, shall be
made in a way that tends to restore the fair
market value of the stock to not more than the
agreed percentage.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1594.)

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(c), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1027; Pub.
L. 97–31, § 12(97)(A), Aug. 6,
1981, 95 Stat. 162.

In subsection (b)(1)(B), the words ‘‘prudent investor’’
are substituted for ‘‘prudent men of discretion and intelligence in such matters’’ to eliminate unnecessary
words.

§ 53507. Nontaxation of deposits
(a) TAX TREATMENT.—Subject to subsection
(b), under the Internal Revenue Code of 1986 (26
U.S.C. 1 et seq.)—
(1) taxable income (determined without regard to this chapter and section 7518 of such
Code (26 U.S.C. 7518)) for the taxable year shall
be reduced by the amount deposited for the
taxable year out of amounts referred to in section 53505(a)(1) of this title;
(2) a gain from a transaction referred to in
section 53505(a)(3) of this title shall not be
taken into account if an amount equal to the
net proceeds (as defined in joint regulations)
from the transaction is deposited in the fund;
(3) the earnings (including gains and losses)
from the investment and reinvestment of
amounts held in the fund shall not be taken
into account;
(4) the earnings and profits of a corporation
(within the meaning of section 316 of such
Code (26 U.S.C. 316)) shall be determined without regard to this chapter and section 7518 of
such Code (26 U.S.C. 7518); and
(5) in applying the tax imposed by section
531 of such Code (26 U.S.C. 531), amounts held
in the fund shall not be taken into account.
(b) CONDITION.—This section applies to an
amount only if the amount is deposited in the
fund under the agreement within the time provided in joint regulations.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1594.)
HISTORICAL AND REVISION NOTES
Revised
Section
53507 ..........

Source (U.S. Code)
46 App.:1177(d).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(d), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1028; Pub.
L.
99–514,
title
II,
§ 261(e)(1), (2), Oct. 22, 1986,
100 Stat. 2215.

Page 329

§ 53509

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

§ 53508. Separate accounts within a fund
(a) IN GENERAL.—A capital construction fund
shall have three accounts:

Revised
Section
53508 ..........

Source (U.S. Code)
46 App.:1177(e).

(1) The capital account.
(2) The capital gain account.
(3) The ordinary income account.
(b) CAPITAL ACCOUNT.—The capital account
shall consist of—
(1) amounts referred to in section 53505(a)(2)
of this title;
(2) amounts referred to in section 53505(a)(3)
of this title, except that portion representing
a gain not taken into account because of section 53507(a)(2) of this title;
(3) the percentage applicable under section
243(a)(1) of the Internal Revenue Code of 1986
(26 U.S.C. 243(a)(1)) of any dividend received by
the fund for which the person maintaining the
fund would be allowed (were it not for section
53507(a)(3) of this title) a deduction under section 243 of such Code (26 U.S.C. 243); and
(4) interest income exempt from taxation
under section 103 of such Code (26 U.S.C. 103).
(c) CAPITAL GAIN ACCOUNT.—The capital gain
account shall consist of—
(1) amounts representing capital gains on assets held for more than 6 months and referred
to in section 53505(a)(3) or (4) of this title;
minus

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(e), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1028; Pub.
L.
99–514,
title
II,
§ 261(e)(3), (4), Oct. 22, 1986,
100 Stat. 2215.

§ 53509. Qualified withdrawals
(a) IN GENERAL.—Subject to subsection (b), a
withdrawal from a capital construction fund is a
qualified withdrawal if it is made under the
terms of the agreement and is for—
(1) the acquisition, construction, or reconstruction of a qualified vessel or a barge or
container that is part of the complement of a
qualified vessel; or
(2) the payment of the principal on indebtedness incurred in the acquisition, construction,
or reconstruction of a qualified vessel or a
barge or container that is part of the complement of a qualified vessel.

(2) amounts representing capital losses on
assets held in the fund for more than 6
months.

(b) BARGES AND CONTAINERS.—Except as provided in regulations prescribed by the Secretary,
subsection (a) applies to a barge or container
only if it is constructed in the United States.

(d) ORDINARY INCOME ACCOUNT.—The ordinary
income account shall consist of—

(c) TREATMENT AS NONQUALIFIED WITHDRAWAL.—Under joint regulations, if the Sec-

(1) amounts referred to in section 53505(a)(1)
of this title;

retary determines that a substantial obligation
under an agreement is not being fulfilled, the
Secretary, after notice and opportunity for a
hearing to the person maintaining the fund,
may treat any amount in the fund as an amount
withdrawn from the fund in a nonqualified withdrawal.

(2)(A) amounts representing capital gains on
assets held for not more than 6 months and referred to in section 53505(a)(3) or (4) of this
title; minus
(B) amounts representing capital losses on
assets held in the fund for not more than 6
months;
(3) interest (except tax-exempt interest referred to in subsection (b)(4)) and other ordinary income (except any dividend referred to
in paragraph (5)) received on assets held in the
fund;
(4) ordinary income from a transaction described in section 53505(a)(3) of this title; and
(5) that portion of any dividend referred to
in subsection (b)(3) not taken into account
under subsection (b)(3).
(e) WHEN LOSSES ALLOWED.—Except on termination of a fund, capital losses referred to in
subsection (c) or (d)(2) shall be allowed only as
an offset to gains referred to in subsection (c) or
(d)(2), respectively.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1595.)

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1596.)
HISTORICAL AND REVISION NOTES
Revised
Section
53509 ..........

Source (U.S. Code)
46 App.:1177(f).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(f), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1029; Pub.
L. 97–31, § 12(97)(A), Aug. 6,
1981, 95 Stat. 162.

In subsection (c), the words ‘‘any amount in the
fund’’ are substituted for ‘‘the entire fund or any portion thereof’’ to eliminate unnecessary words.

§ 53510

TITLE 46—SHIPPING

Page 330

§ 53510. Tax treatment of qualified withdrawals
and basis of property

§ 53511. Tax treatment of nonqualified withdrawals

(a) ORDER OF WITHDRAWALS.—A qualified withdrawal from a capital construction fund shall be
treated as made—
(1) first from the capital account;
(2) second from the capital gain account; and
(3) third from the ordinary income account.

(a) IN GENERAL.—Except as provided in section
53513 of this title, a withdrawal from a fund that
is not a qualified withdrawal shall be treated as
a nonqualified withdrawal.
(b) ORDER OF WITHDRAWALS.—A nonqualified
withdrawal shall be treated as made—
(1) first from the ordinary income account;
(2) second from the capital gain account; and
(3) third from the capital account.

(b) ORDINARY INCOME ACCOUNT WITHDRAWALS.—
If a portion of a qualified withdrawal for a vessel, barge, or container is made from the ordinary income account, the basis of the vessel,
barge, or container shall be reduced by an
amount equal to that portion.
(c) CAPITAL GAIN ACCOUNT WITHDRAWALS.—If a
portion of a qualified withdrawal for a vessel,
barge, or container is made from the capital
gain account, the basis of the vessel, barge, or
container shall be reduced by an amount equal
to that portion.
(d) WITHDRAWALS TO PAY PRINCIPAL.—If a portion of a qualified withdrawal to pay the principal on indebtedness is made from the ordinary
income account or the capital gain account, an
amount equal to the total reduction that would
be required by subsections (b) and (c) if the
withdrawal were a qualified withdrawal for a
purpose described in those subsections shall be
applied, in the order provided in joint regulations, to reduce the basis of vessels, barges, and
containers owned by the person maintaining the
fund. The remaining amount of the withdrawal
shall be treated as a nonqualified withdrawal.
(e) GAIN ON PROPERTY WITH REDUCED BASIS.—
If property, the basis of which was reduced
under subsection (b), (c), or (d), is disposed of,
any gain realized on the disposition, to the extent it does not exceed the total reduction in
the basis of the property under those subsections, shall be treated as an amount referred
to in section 53511(c)(1) of this title withdrawn
on the date of disposition of the property. Subject to conditions prescribed in joint regulations, this subsection does not apply to a disposition if there is a redeposit, in an amount determined under joint regulations, that restores
the fund as far as practicable to the position it
was in before the withdrawal.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1596.)
HISTORICAL AND REVISION NOTES
Revised
Section
53510 ..........

Source (U.S. Code)
46 App.:1177(g).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(g); 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1029; Pub.
L.
99–514,
title
II,
§ 261(e)(5), Oct. 22, 1986, 100
Stat. 2215.

(c) TAX TREATMENT.—For purposes of the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)—
(1) a nonqualified withdrawal from the ordinary income account shall be included in income as an item of ordinary income for the
taxable year in which the withdrawal is made;
(2) a nonqualified withdrawal from the capital gain account shall be included in income
for the taxable year in which the withdrawal
is made as an item of gain realized during that
year from the disposition of an asset held for
more than 6 months; and
(3) for the period through the last date prescribed for payment of tax for the taxable year
in which the withdrawal is made—
(A) no interest shall be payable under section 6601 of such Code (26 U.S.C. 6601) and no
addition to the tax shall be payable under
section 6651 of such Code (26 U.S.C. 6651);
(B) interest on the amount of the additional tax attributable to an amount treated
as a nonqualified withdrawal from the ordinary income account or the capital gain account shall be paid at the rate determined
under subsection (d) from the last date prescribed for payment of the tax for the taxable year for which the amount was deposited in the fund; and
(C) no interest shall be payable on
amounts treated as withdrawn on a last-infirst-out basis under section 53512 of this
title.
(d) INTEREST RATE.—The rate of interest under
subsection (c)(3)(B) for a nonqualified withdrawal made in a taxable year beginning after
1971 shall be determined and published jointly
by the Secretary and the Secretary of the Treasury. The rate shall be such that its relationship
to 8 percent is comparable, as determined by the
Secretaries under joint regulations, to the relationship between—
(1) the money rates and investment yields
for the calendar year immediately before the
beginning of the taxable year; and
(2) the money rates and investment yields
for the calendar year 1970.
(e) NONQUALIFIED WITHDRAWALS.—
(1) IN GENERAL.—The following applicable
percentage of any amount that remains in a
capital construction fund at the close of the
following specified taxable year following the
taxable year for which the amount was deposited shall be treated as a nonqualified withdrawal:
If the amount remains in the fund at
the close of the—

26th taxable year .............................
27th taxable year .............................

The applicable
percentage is—

20 percent
40 percent

Page 331
If the amount remains in the fund at
the close of the—

28th taxable year .............................
29th taxable year .............................
30th taxable year .............................

§ 53511

TITLE 46—SHIPPING
The applicable
percentage is—

60 percent
80 percent
100 percent.

(2) EARNINGS.—The earnings of a capital construction fund for any taxable year (except net
gains) shall be treated under this subsection as
an amount deposited for the taxable year.
(3) CONTRACT FOR QUALIFIED WITHDRAWAL.—
Under paragraph (1), an amount shall not be
treated as remaining in a capital construction
fund at the close of a taxable year to the extent there is a binding contract at the close of
the taxable year for a qualified withdrawal of
the amount for an identified item for which
the withdrawal may be made.
(4) EXCESS EARNINGS.—If the Secretary determines that the balance in a capital construction fund exceeds the amount appropriate
to meet the vessel construction program objectives of the person that established the
fund, the amount of the excess shall be treated
as a nonqualified withdrawal under paragraph
(1) unless the person develops appropriate program objectives within 3 years to dissipate the
excess.
(5) AMOUNTS IN FUND ON JANUARY 1, 1987.—
Under this subsection, amounts in a capital
construction fund on January 1, 1987, shall be
treated as having been deposited in that fund
on that date.
(f) TAX DETERMINATIONS.—
(1) IN GENERAL.—For a taxable year for
which there is a nonqualified withdrawal (including an amount treated as a nonqualified
withdrawal under subsection (e)), the tax imposed by chapter 1 of the Internal Revenue
Code of 1986 (26 U.S.C. ch. 1) shall be determined by—
(A) excluding the withdrawal from gross
income; and
(B) increasing the tax imposed by chapter
1 of such Code by the product of the amount
of the withdrawal and the highest tax rate
specified in section 1 (or section 11 for a corporation) of such Code (26 U.S.C. 1, 11).
(2) MAXIMUM TAX RATE.—For that portion of
a nonqualified withdrawal made from the capital gain account during a taxable year to
which section 1(h) or 1201(a) of such Code (26
U.S.C. 1(h), 1201(a)) applies, the tax rate used
under paragraph (1)(B) may not exceed 15 percent (or 34 percent for a corporation).
(3) TAX BENEFIT RULE.—If any portion of a
nonqualified withdrawal is properly attributable to deposits (except earnings on deposits) made by the taxpayer in a taxable year
that did not reduce the taxpayer’s liability for
tax under chapter 1 of such Code (26 U.S.C. ch.
1) for a taxable year before the taxable year in
which the withdrawal occurs—
(A) that portion shall not be taken into account under paragraph (1); and
(B) an amount equal to that portion shall
be allowed as a deduction under section 172
of such Code (26 U.S.C. 172) for the taxable
year in which the withdrawal occurs.
(4) COORDINATION WITH DEDUCTION FOR NET
OPERATING LOSSES.—A nonqualified withdrawal

excluded from gross income under paragraph
(1) shall be excluded in determining taxable income under section 172(b)(2) of such Code (26
U.S.C. 172(b)(2)).
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1597.)
AMENDMENT OF SUBSECTION (f)(2)
Subsection (f)(2) of this section was derived
from the last paragraph of section 1177(h)(6)(A)
of the former Appendix to this title, which was
amended by section 301(a)(2)(E) of Pub. L.
108–27 by substituting ‘‘15 percent’’ for ‘‘20 percent’’. Section 303 of Pub. L. 108–27, as amended
by section 102 of Pub. L. 109–222 and section
102(a) of Pub. L. 111–312, set out as an Effective
and Termination Dates of 2003 Amendment note
under section 1 of Title 26, Internal Revenue
Code, provided that such amendment shall not
apply to taxable years beginning after December
31, 2012, and that the Internal Revenue Code of
1986 shall be applied and administered to such
years as if the amendment had never been enacted. For applicability of section 303 of Pub. L.
108–27 to subsection (f)(2) of this section, see
section 3528 of Pub. L. 110–181, set out as an
Application of Sunset Provision to Subsection
(f)(2) note below and section 18(c), (d) of Pub.
L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this
title.
HISTORICAL AND REVISION NOTES
Revised
Section
53511 ..........

Source (U.S. Code)

Source (Statutes at Large)

46 App.:1177(h) (less
(2) (last sentence)).

June 29, 1936, ch. 858, title
VI, § 607(h) (less (2) (last
sentence)), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1030; Pub.
L. 97–31, § 12(97)(A), Aug. 6,
1981, 95 Stat. 162; Pub. L.
99–514, title II, § 261(e)(6),
Oct. 22, 1986, 100 Stat. 2215;
Pub. L. 100–647, title I,
§ 1002(m)(2), Nov. 10, 1988,
102 Stat. 3382; Pub. L.
101–508,
title
XI,
§ 11101(d)(7)(B),
Nov.
5,
1990, 104 Stat. 1388–405;
Pub. L. 105–34, title III,
§ 311(c)(2), Aug. 5, 1997, 111
Stat. 835; Pub. L. 108–27,
title III, § 301(a)(2)(E), May
28, 2003, 117 Stat. 758.

In subsection (c)(3)(C), the words ‘‘or in the case of
any nonqualified withdrawal arising from the application of the recapture provision of section 1176(5) of this
Appendix as in effect on December 31, 1969’’ are omitted
as obsolete.
In subsection (d), the words ‘‘made in a taxable year
beginning in 1970 or 1971 is 8 percent’’ are omitted as
obsolete.
APPLICATION OF SUNSET PROVISION TO SUBSECTION
(f)(2)
Pub. L. 110–181, div. C, title XXXV, § 3528, Jan. 28, 2008,
122 Stat. 603, provided that: ‘‘For purposes of section 303
of the Jobs and Growth Tax Relief Reconciliation Act
of 2003 (Public Law 108–27, 26 U.S.C. 1 note), the amend-

§ 53512

TITLE 46—SHIPPING

ment made by section 301(a)(2)(E) of that Act [which
amended section 1177(h)(6)(A) of the former Appendix to
this title from which subsec. (f)(2) of this section was
derived by substituting ‘‘15 percent’’ for ‘‘20 percent’’]
shall be deemed to have been made to section 53511(f)(2)
of title 46, United States Code.’’

§ 53512. FIFO and LIFO withdrawals
(a) FIFO.—Except as provided in subsection
(b), an amount withdrawn from an account
under this chapter shall be treated as withdrawn
on a first-in-first-out basis.
(b) LIFO.—An amount withdrawn from an account under this chapter shall be treated as
withdrawn on a last-in-first-out basis if it is—
(1) a nonqualified withdrawal for research,
development, and design expenses incident to
new and advanced vessel design, machinery,
and equipment; or
(2) an amount treated as a nonqualified
withdrawal under section 53510(d) of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1599.)
HISTORICAL AND REVISION NOTES
Revised
Section
53512 ..........

Source (U.S. Code)
46 App.:1177(h)(2)
(last sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(h)(2) (last sentence), 49 Stat. 2005; June
23, 1938, ch. 600, §§ 23–28, 52
Stat. 960; Aug. 4, 1939, ch.
417, § 10, 53 Stat. 1185; July
17, 1952, ch. 939, §§ 17–19, 66
Stat. 764; Pub. L. 85–637,
Aug. 14, 1958, 72 Stat. 216;
Pub. L. 86–518, § 1, June 12,
1960, 74 Stat. 216; Pub. L.
87–45, § 6, May 27, 1961, 75
Stat. 91; Pub. L. 87–271,
Sept. 21, 1961, 75 Stat. 570;
restated Pub. L. 91–469,
§ 21(a), Oct. 21, 1970, 84
Stat. 1030.

Page 332

§ 53514. Relationship of old fund to new fund
(a) DEFINITION.—In this section, the term ‘‘old
fund’’ means a capital construction fund maintained before October 21, 1970.
(b) ELECTION TO MAINTAIN OLD FUND.—A person maintaining an old fund may elect to continue the old fund, but may not—
(1) hold amounts in the old fund beyond the
expiration date provided in the agreement
under which the old fund is maintained (determined without regard to an extension or renewal made after April 14, 1970); or
(2) maintain simultaneously the old fund
and a new fund established under this chapter.
(c) APPLICATION OF NEW FUND AGREEMENT TO
OLD FUND AMOUNTS.—If a person makes an
agreement under this chapter to establish a new
fund, the person may agree to extend the agreement to some or all of the amounts in an old
fund. Each item in the old fund to be transferred
shall be transferred in a nontaxable transaction
to the appropriate account in the new fund. For
purposes of section 53511(c)(3) of this title, the
date of the deposit of an item so transferred
shall be July 1, 1971, or the date of the deposit
in the old fund, whichever is later.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1599.)
HISTORICAL AND REVISION NOTES
Revised
Section
53514 ..........

Source (U.S. Code)
46 App.:1177(j).

§ 53513. Corporate reorganizations and partnership changes
Under joint regulations—
(1) a transfer of a capital construction fund
from one person to another person in a transaction to which section 381 of the Internal
Revenue Code of 1986 (26 U.S.C. 381) applies
may be treated as if the transaction is not a
nonqualified withdrawal; and
(2) a similar rule shall be applied to a continuation of a partnership (within the meaning of subchapter K of chapter 1 of such Code
(26 U.S.C. 701 et seq.)).

§ 53515. Records and reports
A person maintaining a fund under this chapter shall keep records and make reports as required by the Secretary or the Secretary of the
Treasury.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1599.)
HISTORICAL AND REVISION NOTES

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1599.)
HISTORICAL AND REVISION NOTES
Revised
Section
53513 ..........

Source (U.S. Code)
46 App.:1177(i).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(i), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1031.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(j), 49 Stat. 2005;
June 23, 1938, ch. 600,
§§ 23–28, 52 Stat. 960; Aug.
4, 1939, ch. 417, § 10, 53
Stat. 1185; July 17, 1952,
ch. 939, §§ 17–19, 66 Stat.
764; Pub. L. 85–637, Aug.
14, 1958, 72 Stat. 216; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 87–45,
§ 6, May 27, 1961, 75 Stat.
91; Pub. L. 87–271, Sept. 21,
1961, 75 Stat. 570; restated
Pub. L. 91–469, § 21(a), Oct.
21, 1970, 84 Stat. 1031.

Revised
Section
53515 ..........

Source (U.S. Code)
46 App.:1177(l) (1st
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(l) (1st sentence),
49 Stat. 2005; June 23, 1938,
ch. 600, §§ 23–28, 52 Stat.
960; Aug. 4, 1939, ch. 417,
§ 10, 53 Stat. 1185; July 17,
1952, ch. 939, §§ 17–19, 66
Stat. 764; Pub. L. 85–637,
Aug. 14, 1958, 72 Stat. 216;
Pub. L. 86–518, § 1, June 12,
1960, 74 Stat. 216; Pub. L.
87–45, § 6, May 27, 1961, 75
Stat. 91; Pub. L. 87–271,
Sept. 21, 1961, 75 Stat. 570;
restated Pub. L. 91–469,
§ 21(a), Oct. 21, 1970, 84
Stat. 1032; Pub. L. 97–31,
§ 12(97)(A), Aug. 6, 1981, 95
Stat. 162.

Page 333

§ 53516. Termination of agreement after change
in regulations
If, after an agreement has been made under
this chapter, a change is made either in the
joint regulations or in the regulations prescribed by the Secretary under this chapter that
could have a substantial effect on the rights or
duties of a person maintaining a fund under this
chapter, that person may terminate the agreement.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1600.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53516 ..........

46 App.:1177(l) (last
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(l) (last sentence),
49 Stat. 2005; June 23, 1938,
ch. 600, §§ 23–28, 52 Stat.
960; Aug. 4, 1939, ch. 417,
§ 10, 53 Stat. 1185; July 17,
1952, ch. 939, §§ 17–19, 66
Stat. 764; Pub. L. 85–637,
Aug. 14, 1958, 72 Stat. 216;
Pub. L. 86–518, § 1, June 12,
1960, 74 Stat. 216; Pub. L.
87–45, § 6, May 27, 1961, 75
Stat. 91; Pub. L. 87–271,
Sept. 21, 1961, 75 Stat. 570;
restated Pub. L. 91–469,
§ 21(a), Oct. 21, 1970, 84
Stat. 1032; Pub. L. 97–31,
§ 12(97)(A), Aug. 6, 1981, 95
Stat. 162.

§ 53517. Reports

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1600.)
HISTORICAL AND REVISION NOTES
Source (U.S. Code)

53517 ..........

46 App.:1177(m).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VI, § 607(m), as added Pub.
L. 99–514, § 261(d), Oct. 22,
1986, 100 Stat. 2214.

CHAPTER 537—LOANS AND GUARANTEES
SUBCHAPTER I—GENERAL
Sec.

53701.

Definitions.

Sec.

53702.
53703.
53704.
53705.
53706.
53707.
53708.
53709.
53710.
53711.
53712.
53713.
53714.
53715.
53716.
53717.
53718.

General authority.
Application procedures.
Funding limits.
Pledge of United States Government.
Eligible purposes of obligations.
Findings related to obligors and operators.
Findings related to economic soundness.
Amount of obligations.
Contents of obligations.
Security interest.
Monitoring financial condition and operations of obligor.
Administrative fees.
Guarantee fees.
Escrow fund.
Deposit fund.
Management of funds in the Treasury.
Annual report to Congress.
SUBCHAPTER II—DEFAULT PROVISIONS

53721.
53722.
53723.
53724.
53725.

Rights of obligee.
Actions by Secretary or Administrator.
Payments by Secretary or Administrator and
issuance of obligations.
Rights to secured property.
Actions against obligor.

SUBCHAPTER III—PARTICULAR PROJECTS
53731.
53732.
53733.
53734.
53735.

(a) IN GENERAL.—Within 120 days after the
close of each calendar year, the Secretary of
Transportation and the Secretary of Commerce
each shall provide the Secretary of the Treasury
a written report on the capital construction
funds under the particular Secretary’s jurisdiction for the calendar year.
(b) CONTENTS.—The report shall state the
name and taxpayer identification number of
each person—
(1) establishing a capital construction fund
during the calendar year;
(2) maintaining a capital construction fund
on the last day of the calendar year;
(3) terminating a capital construction fund
during the calendar year;
(4) making a deposit to or withdrawal from
a capital construction fund during the calendar year, and the amount of the deposit or
withdrawal; or
(5) having been determined during the calendar year to have failed to fulfill a substantial obligation under a capital construction
fund agreement to which the person is a party.

Revised
Section

§ 53701

TITLE 46—SHIPPING

Commercial demonstration ocean thermal energy conversion facilities and plantships.
Eligible export vessels.
Shipyard modernization and improvement.
Replacement of vessels because of changes in
operating standards.
Fisheries financing and capacity reduction.
AMENDMENTS

2008—Pub.
L.
110–181,
div.
C,
title
XXXV,
§ 3522(a)(10)(A), Jan. 28, 2008, 122 Stat. 598, inserted ‘‘or
Administrator’’ after ‘‘Secretary’’ in items 53722 and
53723.

SUBCHAPTER I—GENERAL
§ 53701. Definitions
In this chapter:
(1) ACTUAL COST.—The term ‘‘actual cost’’
means the sum of—
(A) all amounts paid by or for the account
of the obligor as of the date on which a determination is made under section 53715(d)(1)
of this title; and
(B) all amounts that the Secretary or Administrator reasonably estimates the obligor will become obligated to pay from time
to time thereafter, for the construction, reconstruction, or reconditioning of the vessel,
including guarantee fees that will become
payable under section 53714 of this title in
connection with all obligations issued for
construction, reconstruction, or reconditioning of the vessel or equipment to be delivered, and all obligations issued for the delivered vessel or equipment.
(2) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Administrator of the Maritime Administration.
(3) CONSTRUCTION, RECONSTRUCTION, AND RECONDITIONING.—The terms ‘‘construction’’, ‘‘reconstruction’’, and ‘‘reconditioning’’ include
designing, inspecting, outfitting, and equipping.
(4) DEPRECIATED ACTUAL COST.—The term
‘‘depreciated actual cost’’ of a vessel means—

§ 53701

TITLE 46—SHIPPING

(A) if the vessel was not reconstructed or
reconditioned, the actual cost of the vessel
depreciated on a straight line basis over the
useful life of the vessel as determined by the
Secretary or Administrator, not to exceed 25
years from the date of delivery by the builder; or
(B) if the vessel was reconstructed or reconditioned, the sum of—
(i) the actual cost of the vessel depreciated on a straight line basis from the
date of delivery by the builder to the date
of the reconstruction or reconditioning,
using the original useful life of the vessel,
and from the date of the reconstruction or
reconditioning, using a useful life of the
vessel determined by the Secretary or Administrator; and
(ii) any amount paid or obligated to be
paid for the reconstruction or reconditioning, depreciated on a straight line basis
using a useful life of the vessel determined
by the Secretary or Administrator.
(5) ELIGIBLE EXPORT VESSEL.—The term ‘‘eligible export vessel’’ means a vessel that—
(A) is constructed, reconstructed, or reconditioned in the United States for use in
world-wide trade; and
(B) will, on delivery or redelivery, become
or remain documented under the laws of a
country other than the United States.
(6) FISHERY FACILITY.—
(A) IN GENERAL.—Subject to subparagraph
(B), the term ‘‘fishery facility’’ means—
(i) for operations on land—
(I) a structure or appurtenance thereto
designed for the unloading and receiving
from vessels, the processing, the holding
pending processing, the distribution
after processing, or the holding pending
distribution, of fish from a fishery;
(II) the land necessary for the structure or appurtenance; and
(III) equipment that is for use with the
structure or appurtenance and that is
necessary for performing a function referred to in subclause (I);
(ii) for operations not on land, a vessel
built in the United States and used for,
equipped to be used for, or of a type normally used for, the processing of fish; or
(iii) for aquaculture, including operations on land or elsewhere—
(I) a structure or appurtenance thereto
designed for aquaculture;
(II) the land necessary for the structure or appurtenance;
(III) equipment that is for use with the
structure or appurtenance and that is
necessary for performing a function referred to in subclause (I); and
(IV) a vessel built in the United States
and used for, equipped to be used for, or
of a type normally used for, aquaculture.
(B) REQUIRED OWNERSHIP.—Under subparagraph (A), the structure, appurtenance, land,
equipment, or vessel must be owned by—
(i) an individual who is a citizen of the
United States; or

Page 334

(ii) an entity that is a citizen of the
United States under section 50501 of this
title and that is at least 75 percent owned
(as determined under that section) by citizens of the United States.
(7) FISHING VESSEL.—The term ‘‘fishing vessel’’ has the meaning given that term in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C.
1802), and any reference in this chapter to a
vessel designed principally for commercial use
in the fishing trade or industry is deemed to
be a reference to a fishing vessel.
(8) MORTGAGE.—The term ‘‘mortgage’’ includes—
(A) a preferred mortgage as defined in section 31301 of this title; and
(B) a mortgage on a vessel that will become a preferred mortgage when filed or recorded under chapter 313 of this title.
(9) OBLIGATION.—The term ‘‘obligation’’
means an instrument of indebtedness issued
for a purpose described in section 53706 of this
title, except—
(A) an obligation issued by the Secretary
or Administrator under section 53723 of this
title; and
(B) an obligation eligible for investment of
funds under section 53715(f) or 53717 of this
title.
(10) OBLIGEE.—The term ‘‘obligee’’ means the
holder of an obligation.
(11) OBLIGOR.—The term ‘‘obligor’’ means a
party primarily liable for payment of the principal of or interest on an obligation.
(12) OCEAN THERMAL ENERGY CONVERSION FACILITY OR PLANTSHIP.—The term ‘‘ocean thermal energy conversion facility or plantship’’
means an at-sea facility or vessel, whether
mobile, floating unmoored, moored, or standing on the seabed, that uses temperature differences in ocean water to produce electricity
or another form of energy capable of being
used directly to perform work, and includes—
(A) equipment installed on the facility or
vessel to use the electricity or other form of
energy to produce, process, refine, or manufacture a product;
(B) a cable or pipeline used to deliver the
electricity, freshwater, or product to shore;
and
(C) other associated equipment and appurtenances of the facility or vessel to the extent they are located seaward of the high
water mark.
(13) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of Commerce with respect to fishing vessels and fishery facilities.
(14) VESSEL.—The term ‘‘vessel’’ means any
type of vessel, whether in existence or under
construction, including—
(A) a cargo vessel;
(B) a passenger vessel;
(C) a combination cargo and passenger vessel;
(D) a tanker;
(E) a tug or towboat;
(F) a barge;
(G) a dredge;

Page 335

(H) a floating drydock with a capacity of
at least 35,000 lifting tons and a beam of at
least 125 feet between the wing walls;
(I) an oceanographic research vessel;
(J) an instruction vessel;
(K) a pollution treatment, abatement, or
control vessel;
(L) a fishing vessel whose ownership meets
the citizenship requirements under section
50501 of this title for documenting vessels to
operate in the coastwise trade; and
(M) an ocean thermal energy conversion
facility or plantship that is or will be documented under the laws of the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1601;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(A), (b)(1), Jan. 6, 2006, 119 Stat. 3555;
Pub. L. 110–181, div. C, title XXXV, § 3522(a)(1),
(10)(B), (b), Jan. 28, 2008, 122 Stat. 596, 598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53701(1) ......

53701(2)
53701(3)
53701(4)
53701(5)

......
......
......
......

53701(6) ......
53701(7) ......
53701(8) ......
53701(9) ......
53701(10) .....
53701(11) .....
53701(12) .....
53701(13) .....

§ 53702

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1271(f).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1101, as added June
23, 1938, ch. 600, § 46, 52
Stat. 969; Sept. 3, 1954, ch.
1265, § 1, 68 Stat. 1267; Aug.
7, 1956, ch. 1026, § 1(a), (b),
70 Stat. 1087; Pub. L.
86–127, § 1(1), July 31, 1959,
73 Stat. 272; Pub. L. 86–685,
§ 1, Sept. 2, 1960, 74 Stat.
733; Pub. L. 87–303, § 2,
Sept. 26, 1961, 75 Stat. 661;
Pub. L. 91–469, § 29, Oct. 21,
1970, 84 Stat. 1035; Pub. L.
92–507, § 1, Oct. 19, 1972, 86
Stat. 909; Pub. L. 96–320,
title II, § 202(a), Aug. 3,
1980, 94 Stat. 992; Pub. L.
96–561, title II, § 220(1),
Dec. 22, 1980, 94 Stat. 3291;
Pub. L. 97–31, § 12(135),
Aug. 6, 1981, 95 Stat. 165;
Pub. L. 100–710, title I,
§ 104(d), Nov. 23, 1988, 102
Stat. 4750; Pub. L. 102–567,
title III, § 304, Oct. 29, 1992,
106 Stat. 4283; Pub. L.
103–160, title XIII, § 1356(1),
1357(b), Nov. 30, 1993, 107
Stat. 1812, 1815; Pub. L.
104–208, title I, § 101 [title
II, § 211(b)], Sept. 30, 1996,
110 Stat. 3009–41; Pub. L.
104–239, § 11(1), Oct. 8, 1996,
110 Stat. 3134; Pub. L.
108–136,
title
XXXV,
§ 3521(b), Nov. 24, 2003, 117
Stat. 1799.

46
46
46
46

App.:1271(h).
App.:1271(g).
App.:1271(o).
App.:1271(j), (k),
(m).
46 App.:1271(l).
46 App.:1271(a).
46 App.:1271(c).
46 App.:1271(e).
46 App.:1271(d).
46 App.:1271(i).
46 App.:1271(n).
46 App.:1271(b).

In paragraph (2), the words ‘‘but shall not be limited
to’’ are omitted as unnecessary.
In paragraph (4)(B), the words ‘‘become or remain’’
are substituted for ‘‘be placed under or continued to
be’’ for clarity.
In paragraph (5)(B)(i), the words ‘‘individual who is a
citizen of the United States’’ are substituted for ‘‘individual who is a citizen or national of the United States
or a citizen of the Northern Mariana Islands’’ in 46 App.
U.S.C. 1271(k) because of the definition of ‘‘citizen of
the United States’’ in chapter 1 of the revised title.
Citizens of the Northern Mariana Islands became citizens or non-citizen nationals of the United States (either of which is a ‘‘citizen of the United States’’ as de-

fined in chapter 1 of the revised title) when the Covenant establishing the Commonwealth of the Northern
Mariana Islands became effective on November 4, 1986.
In paragraph (5)(B)(ii), the words ‘‘corporation, partnership, association, or other’’ are omitted as suplus
[sic]. The words ‘‘the term ‘State’ as used therein includes any State, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the Virgin Islands of the United States, Guam, the Northern
Mariana Islands, or any other Commonwealth, territory, or possession of the United States’’ in 46 App.
U.S.C. 1271(k) are omitted as unnecessary because of
the definitions of ‘‘State’’ and ‘‘United States’’ in chapter 1 of the revised title. The definition of ‘‘United
States’’ in 46 App. U.S.C. 1271(m) is omitted as unnecessary because of the definition of ‘‘United States’’ in
chapter 1. The words ‘‘and nationals of the United
States or citizens of the Northern Mariana Islands shall
be treated as citizens of the United States in meeting
such ownership requirement’’ are omitted as unnecessary because of the definition of ‘‘citizen of the United
States’’ in chapter 1 of the revised title.
In paragraph (8), before subparagraph (A), the words
‘‘instrument of indebtedness’’ are substituted for
‘‘note, bond, debenture, or other evidence of indebtedness’’ to eliminate unnecessary words. In subparagraph
(B), the reference to section 53717 is substituted for the
reference to 46 App. U.S.C. 1272 because the accounts
under section 53717 replace the Federal Ship Financing
Fund. See the explanation for section 53717.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(A), (b)(1). See 2006 Amendment note
below.
Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(A), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing in pars.
(1)(B), (4), and (9)(A). See 2006 Amendment note below
and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section
101 of this title.
Pub. L. 110–181, § 3522(a)(1), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(b)(1),
into this section by adding pars. (2) and (13), redesignating former pars. (2) to (13) as (3) to (14), respectively,
and striking out former par. (13), which defined ‘‘Secretary’’. See 2006 Amendment note below and section
18(a) of Pub. L. 109–304, set out as a Legislative Purpose
and Construction note preceding section 101 of this
title.
2006—Pub. L. 109–163, § 3507(a)(1)(A), (b)(1), which directed the amendment of section 1271 of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment notes and Historical and Revision notes
above.

§ 53702. General authority
(a) IN GENERAL.—The Secretary or Administrator, on terms the Secretary or Administrator
may prescribe, may guarantee or make a commitment to guarantee the payment of the principal of and interest on an obligation eligible to
be guaranteed under this chapter. A guarantee
or commitment to guarantee shall cover 100 percent of the principal and interest.
(b) DIRECT LOANS FOR FISHERIES.—
(1) IN GENERAL.—Notwithstanding any other
provision of this chapter, any obligation involving a fishing vessel, fishery facility, aquaculture facility, individual fishing quota, or
fishing capacity reduction program issued
under this chapter after October 11, 1996, shall
be a direct loan obligation for which the Secretary shall be the obligee, rather than an ob-

§ 53703

TITLE 46—SHIPPING

ligation issued to an obligee other than the
Secretary and guaranteed by the Secretary. A
direct loan obligation under this subsection
shall be treated in the same manner and to the
same extent as an obligation guaranteed under
this chapter except with respect to provisions
of this chapter that by their nature can only
be applied to obligations guaranteed under
this chapter.
(2) INTEREST RATE.—Notwithstanding any
other provision of this chapter, the annual
rate of interest an obligor shall pay on a direct
loan obligation under this subsection is 2 percent plus the additional percent the Secretary
must pay as interest to borrow from the
Treasury the funds to make the loan.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1603;
Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C),
(d), Jan. 6, 2006, 119 Stat. 3555, 3557; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(10)(B), (b),
Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53702(a) ......

53702(b) ......

Source (U.S. Code)
46 App.:1273(a).

46 App.:1279g.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1103(a), as added June
23, 1938, ch. 600, § 46, 52
Stat. 969; Aug. 15, 1953, ch.
513, § 1, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 3, 68
Stat. 1268; June 25, 1956,
ch. 438, 70 Stat. 332; Aug.
7, 1956, ch. 1026, § 1(a), (c),
(d), 70 Stat. 1087; Pub. L.
91–469, § 30, Oct. 21, 1970, 84
Stat. 1035; restated Pub.
L. 92–507, § 3, Oct. 19, 1972,
86 Stat. 910; Pub. L. 97–31,
§ 12(136), Aug. 6, 1981, 95
Stat. 166; Pub. L. 99–509,
title V, § 5002, Oct. 21, 1986,
100 Stat. 1912; Pub. L.
103–160, div. A, title XIII,
§ 1356(5), Nov. 30, 1993, 107
Stat. 1814.
June 29, 1936, ch. 858, title
XI, § 1112, as added Pub. L.
104–297, title III, § 303(a),
Oct. 11, 1996, 110 Stat. 3616.

In subsection (a), the words ‘‘on terms the Secretary
may prescribe’’ are added based on language in 46 App.
U.S.C. 1274(a) (before cl. (1)). The words ‘‘the unpaid
balance of’’ are omitted as unnecessary.
CODIFICATION
Subsec. (b) of this section was derived from section
1112 of act June 29, 1936, as added by Pub. L. 104–297,
§ 303(a), which was classified to section 1279g of the
former Appendix to this title. Section 1112 was renumbered section 1114 of the Act by Pub. L. 109–163, div. C,
title XXXV, § 3507(d), Jan. 6, 2006, 119 Stat. 3557, which
was repealed by Pub. L. 110–181, div. C, title XXXV,
§ 3522(b), Jan. 28, 2008, 122 Stat. 598. See Historical and
Revision notes above and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(C), (d). See 2006 Amendment note
below and Codification note above.
Subsec. (a). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(C), into this section by inserting ‘‘or
Administrator’’ after ‘‘Secretary’’ in two places. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(C), which directed
the amendment of section 1273(a) of the former Appen-

Page 336

dix to this title from which subsec. (a) of this section
was derived, was repealed by Pub. L. 110–181, § 3522(b).
See 2008 Amendment note for subsec. (a) and Historical
and Revision notes above.

§ 53703. Application procedures
(a) TIME FOR DECISION.—
(1) IN GENERAL.—The Secretary or Administrator shall approve or deny an application for
a loan guarantee under this chapter within 270
days after the date on which the signed application is received by the Secretary or Administrator.
(2) EXTENSION.—On request by an applicant,
the Secretary or Administrator may extend
the 270-day period in paragraph (1) to a date
not later than 2 years after the date on which
the signed application was received by the
Secretary or Administrator.
(b) CERTIFICATION OF REVIEW.—The Secretary
or Administrator may not guarantee or make a
commitment to guarantee an obligation under
this chapter unless the Secretary or Administrator certifies that a full and fair consideration
of all the regulatory requirements, including
economic soundness and financial requirements
applicable to the obligor and related parties, and
a thorough assessment of the technical, economic, and financial aspects of the loan application, has been made.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1604;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(D), (2)(G), (b)(7), Jan. 6, 2006, 119 Stat.
3555, 3556; Pub. L. 110–181, div. C, title XXXV,
§ 3522(a)(10)(B), (b), Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53703(a) ......

46 App.:1274(n).

53703(b) ......

46 App.:1274(l).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1104A(l), (n), as added
Pub. L. 108–136, title
XXXV,
§§ 3523(b),
3525,
Nov. 24, 2003, 117 Stat.
1800, 1801.

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(D), (2)(G), (b)(7). See 2006 Amendment note below.
Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(D), (2)(G), (b)(7), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing. See 2006 Amendment note below and section
18(a) of Pub. L. 109–304, set out as a Legislative Purpose
and Construction note preceding section 101 of this
title.
2006—Pub. L. 109–163, § 3507(a)(1)(D), (2)(G), (b)(7),
which directed the amendment of section 1274(l), (n) of
the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181,
§ 3522(b). See 2008 Amendment notes and Historical and
Revision notes above.
REVIEW OF APPLICATIONS FOR LOANS AND GUARANTEES
Pub. L. 110–181, div. C, title XXXV, § 3517, Jan. 28, 2008,
122 Stat. 595, provided that:
‘‘(a) FINDINGS.—The Congress makes the following
findings:
‘‘(1) The maritime loan guarantee program was established by the Congress through the Merchant Marine Act, 1936 [see Short Title of 1936 Amendment

Page 337

TITLE 46—SHIPPING

note set out under section 101 of this title] to encourage domestic shipbuilding by making available federally backed loan guarantees for new construction to
ship owners and operators.
‘‘(2) The maritime loan guarantee program has a
long and successful history of ship construction with
a low historical default rate.
‘‘(3) The current process for review of applications
for maritime loans in the Department of Transportation has effectively discontinued the program as
envisioned by the Congress.
‘‘(4) The President has requested no funding for the
loan guarantee program despite the stated national
policy to foster the development and encourage the
maintenance of a merchant marine in section 50101 of
title 46, United States Code.
‘‘(5) United States commercial shipyards were
placed at a competitive disadvantage in the world
shipbuilding market by government subsidized foreign commercial shipyards.
‘‘(6) The maritime loan guarantee program has the
potential to modernize shipyards and the ships of the
United States coastwise trade and restore a competitive position in the world shipbuilding market for
United States shipyards.
‘‘(7) The maritime loan guarantee program is a useful tool to encourage domestic shipbuilding, preserving a vital industrial capacity critical to the security
of the United States.
‘‘(b) REQUIREMENTS.—
‘‘(1) IN GENERAL.—Within 180 days after the date of
enactment of this Act [Jan. 28, 2008], the Administrator of the Maritime Administration shall develop
and implement a comprehensive plan for the review
of applications for loan guarantees under chapter 537
of title 46, United States Code.
‘‘(2) DEADLINE FOR ACTION ON APPLICATION.—
‘‘(A) TRADITIONAL APPLICATIONS.—In the comprehensive plan the Administrator will ensure that
within the 90-day period following receipt of all pertinent documentation required for review of a traditional loan application, the application shall be
either accepted or rejected.
‘‘(B) NONTRADITIONAL APPLICATIONS.—In the comprehensive plan the Administrator will ensure that
within the 180-day period following receipt of all
pertinent documentation required for review of a
nontraditional loan application, the application
shall be either accepted or rejected.
‘‘(c) SUBMISSION TO CONGRESS.—The Administrator
shall submit a copy of the comprehensive plan to the
Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Armed Services of
the House of Representatives within 180 days after the
date of enactment of this Act [Jan. 28, 2008].
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) TRADITIONAL APPLICATION.—The term ‘traditional application’ means an application for a loan,
guarantee, or commitment to guarantee submitted
pursuant to chapter 537 of title 46, United States
Code, that involves a market, technology, and financial structure of a type that has proven successful in
previous applications and does not present an unreasonable risk to the United States, as determined by
the Administrator of the Maritime Administration.
‘‘(2) NONTRADITIONAL APPLICATION.—The term ‘nontraditional application’ means an application for a
loan, guarantee, or commitment to guarantee submitted pursuant to chapter 537 of title 46, United
States Code, that is not a traditional application, as
determined by the Administrator of the Maritime Administration.’’

§ 53704. Funding limits
(a) GENERAL LIMITATIONS.—The total unpaid
principal amount of obligations guaranteed
under this chapter and outstanding at one time
may not exceed $12,000,000,000. Of that amount—
(1) $850,000,000 shall be limited to obligations
related to fishing vessels and fishery facilities;
and

§ 53704

(2) $3,000,000,000 shall be limited to obligations related to eligible export vessels.
(b) ADDITIONAL LIMITATIONS.—Additional limitations may not be imposed on new commitments to guarantee loans for any fiscal year, except in amounts established in advance by annual authorization laws. A vessel eligible for a
guarantee under this chapter may not be denied
eligibility because of its type.
(c) LIMITS BASED ON RISK FACTORS.—
(1) DEFINITION.—In this subsection, the term
‘‘cost’’ has the meaning given that term in
section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a).
(2) SYSTEM OF RISK CATEGORIES.—The Secretary or Administrator shall—
(A) establish, and update annually, a system of risk categories for obligations guaranteed under this chapter that categorizes
the relative risk of guarantees based on the
risk factors set forth in paragraph (4);
(B) determine annually for each risk category a subsidy rate equivalent to the cost
of obligations in the category, expressed as a
percentage of the amount guaranteed for obligations in the category; and
(C) ensure that each risk category is comprised of loans that are relatively homogeneous in cost and share characteristics
predictive of defaults and other costs, given
the facts known at the time of obligation or
commitment, using a risk category system
that is based on historical analysis of program data and statistical evidence concerning the likely costs of defaults or other costs
that are expected to be associated with the
loans in the category.
(3) USE OF SYSTEM.—
(A) PLACING OBLIGATION IN CATEGORY.—Before making a guarantee under this chapter
for an obligation, and annually for projects
subject to a guarantee, the Secretary or Administrator shall apply the risk factors specified in paragraph (4) to place the obligation
in a risk category established under paragraph (2).
(B) REDUCTION OF AVAILABLE AMOUNT.—The
Secretary or Administrator shall consider
the total amount available to the Secretary
or Administrator for making guarantees
under this chapter to be reduced by the
amount determined by multiplying—
(i) the amount guaranteed under this
chapter for an obligation; by
(ii) the subsidy rate for the category in
which the obligation is placed under subparagraph (A).
(C) ESTIMATED COST.—The estimated cost
to the United States Government of a guarantee under this chapter for an obligation is
deemed to be the amount determined under
subparagraph (B) for the obligation.
(D) RESTRICTION ON FURTHER GUARANTEES.—The Secretary or Administrator may
not guarantee obligations under this chapter
after the total amount available to the Secretary or Administrator under appropriations laws for the cost of loan guarantees is
considered to be reduced to zero under subparagraph (B).

§ 53705

TITLE 46—SHIPPING

(4) RISK FACTORS.—The risk factors referred
to in this subsection are—
(A) if applicable, the country risk for each
eligible export vessel financed or to be financed by an obligation;
(B) the period for which an obligation is
guaranteed or to be guaranteed;
(C) the amount of an obligation guaranteed or to be guaranteed in relation to the
total cost of the project financed or to be financed by the obligation;
(D) the financial condition of an obligor or
applicant for a guarantee;
(E) if applicable, other guarantees related
to the project;
(F) if applicable, the projected employment of each vessel or equipment to be financed with an obligation;
(G) if applicable, the projected market
that will be served by each vessel or equipment to be financed with an obligation;
(H) the collateral provided for a guarantee
for an obligation;
(I) the management and operating experience of an obligor or applicant for a guarantee;
(J) whether a guarantee under this chapter
is or will be in effect during the construction
period of the project; and
(K) the concentration risk presented by an
unduly large percentage of loans outstanding by any one borrower or group of affiliated borrowers.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1604;
Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C),
Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C,
title XXXV, § 3522(a)(10)(B), (b), Jan. 28, 2008, 122
Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53704(a) ......

53704(b) ......
53704(c) ......

Source (U.S. Code)
46 App.:1273(f) (1st
sentence).

46 App.:1273(f) (2d,
last sentences).
46 App.:1273(h).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1103(f), as added June
23, 1938, ch. 600, § 46, 52
Stat. 969; Aug. 15, 1953, ch.
513, § 1, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 3, 68
Stat. 1268; June 25, 1956,
ch. 438, 70 Stat. 332; Aug.
7, 1956, ch. 1026, § 1(a), (c),
(d), 70 Stat. 1087; Pub. L.
91–469, § 30, Oct. 21, 1970, 84
Stat. 1035; restated Pub.
L. 92–507, § 3, Oct. 19, 1972,
86 Stat. 910; Pub. L. 93–70,
§ 3, July 10, 1973, 87 Stat.
168; Pub. L. 94–127, § 5,
Nov. 13, 1975, 89 Stat. 681;
Pub. L. 95–298, § 5, June 26,
1978, 92 Stat. 340; Pub. L.
96–320, title II, § 203(b)(1),
Aug. 3, 1980, 94 Stat. 994;
Pub. L. 96–561, title II,
§ 220(2), Dec. 22, 1980, 94
Stat. 3292; Pub. L. 97–35,
title XVI, § 1606(a), (b),
Aug. 13, 1981, 95 Stat. 752;
Pub. L. 97–424, title IV,
§ 425, Jan. 6, 1983, 96 Stat.
2167; Pub. L. 103–160, title
XIII, § 1356(2)(A), Nov. 30,
1993, 107 Stat. 1812; Pub. L.
108–136,
title
XXXV,
§ 3528(b), Nov. 24, 2003, 117
Stat. 1802.

Page 338
AMENDMENTS

2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(C). See 2006 Amendment note below.
Subsec. (c). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(C), into this section by inserting ‘‘or
Administrator’’ after ‘‘Secretary’’ wherever appearing.
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(C), which directed
the amendment of section 1273(h) of the former Appendix to this title from which subsec. (c) of this section
was derived, was repealed by Pub. L. 110–181, § 3522(b).
See 2008 Amendment note for subsec. (c) and Historical
and Revision notes above.

§ 53705. Pledge of United States Government
(a) FULL FAITH AND CREDIT.—The full faith and
credit of the United States Government is
pledged to the payment of a guarantee made
under this chapter, for both principal and interest, including interest (as may be provided for in
the guarantee) accruing between the date of default under a guaranteed obligation and the date
of payment in full of the guarantee.
(b) INCONTESTABILITY.—A guarantee or commitment to guarantee made under this chapter
is conclusive evidence of the eligibility of the
obligation for the guarantee. The validity of a
guarantee or commitment to guarantee made
under this chapter is incontestable.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1606;
Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C),
Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C,
title XXXV, § 3522(b), Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53705(a) ......

46 App.:1273(d).

53705(b) ......

46 App.:1273(e) (1st
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1103(d), (e) (1st sentence), as added June 23,
1938, ch. 600, § 46, 52 Stat.
969; Aug. 15, 1953, ch. 513,
§ 1, 67 Stat. 626; Sept. 3,
1954, ch. 1265, § 3, 68 Stat.
1268; June 25, 1956, ch. 438,
70 Stat. 332; Aug. 7, 1956,
ch. 1026, § 1(a), (c), (d), 70
Stat. 1087; Pub. L. 91–469,
§ 30, Oct. 21, 1970, 84 Stat.
1035; restated Pub. L.
92–507, § 3, Oct. 19, 1972, 86
Stat. 910; Pub. L. 97–31,
§ 12(136), Aug. 6, 1981, 95
Stat. 166; Pub. L. 98–595,
§ 1(1), Oct. 30, 1984, 98 Stat.
3130.

AMENDMENTS
2008—Pub. L. 110–181 repealed Pub. L. 109–163,
§ 3507(a)(1)(C). See 2006 Amendment note below.
2006—Pub. L. 109–163, § 3507(a)(1)(C), which directed
the amendment of section 1273(e) of the former Appendix to this title from which this section was derived in
part by striking ‘‘Secretary’’ each place it appears and
inserting ‘‘Secretary or Administrator’’, was repealed
by Pub. L. 110–181. See Historical and Revision notes
above.

§ 53706. Eligible purposes of obligations
June 29, 1936, ch. 858, title
XI, § 1103(h), as added Pub.
L. 104–239, § 13(a), Oct. 8,
1996, 110 Stat. 3134; Pub. L.
108–136,
title
XXXV,
§ 3528(b), Nov. 24, 2003, 117
Stat. 1802.

(a) IN GENERAL.—To be eligible for a guarantee
under this chapter, an obligation must aid in
any of the following:
(1)(A) Financing (including reimbursement
of an obligor for expenditures previously made

Page 339

TITLE 46—SHIPPING

for) the construction, reconstruction, or reconditioning of a vessel (including an eligible
export vessel) designed principally for research, or for commercial use—
(i) in the coastwise or intercoastal trade;
(ii) on the Great Lakes, or on bays, sounds,
rivers, harbors, or inland lakes of the United
States;
(iii) in foreign trade as defined in section
109(b) of this title;
(iv) as an ocean thermal energy conversion
facility or plantship;
(v) as a floating drydock in the construction, reconstruction, reconditioning, or repair of vessels; or
(vi) as an eligible export vessel in worldwide trade.
(B) A guarantee under subparagraph (A) may
not be made more than one year after delivery
of the vessel (or redelivery if the vessel was reconstructed or reconditioned) unless the proceeds of the obligation are used to finance the
construction, reconstruction, or reconditioning of a vessel or of facilities or equipment related to marine operations.
(2) Financing (including reimbursement of
an obligor for expenditures previously made
for) the construction, reconstruction, reconditioning, or purchase of a vessel owned by citizens of the United States and designed principally for research, or for commercial use in
the fishing industry.
(3) Financing the purchase, reconstruction,
or reconditioning of a vessel or fishery facility—
(A) for which an obligation was guaranteed
under this chapter; and
(B) that, under subchapter II of this chapter—
(i) is a vessel or fishery facility for which
an obligation was accelerated and paid;
(ii) was acquired by the Federal Ship Financing Fund or successor account under
section 53717 of this title; or
(iii) was sold at foreclosure begun or intervened in by the Secretary or Administrator.
(4) Financing any part of the repayment to
the United States Government of any amount
of a construction-differential subsidy paid for
a vessel.
(5) Refinancing an existing obligation (regardless of whether guaranteed under this
chapter) issued for a purpose described in
paragraphs (1)–(4), including a short-term obligation incurred to obtain temporary funds
with the intention of refinancing.
(6) Financing or refinancing (including reimbursement of an obligor for expenditures previously made for) the construction, reconstruction, reconditioning, or purchase of a
fishery facility.
(7) Financing or refinancing—
(A) the purchase of individual fishing
quotas in accordance with section 303(d)(4) of
the Magnuson-Stevens Fishery Conservation
and Management Act (including the reimbursement of obligors for expenditures previously made for such a purchase);
(B) activities that assist in the transition
to reduced fishing capacity; or

§ 53706

(C) technologies or upgrades designed to
improve collection and reporting of fisherydependent data, to reduce bycatch, to improve selectivity or reduce adverse impacts
of fishing gear, or to improve safety.
(b) NON-VESSELS TREATED AS VESSELS.—An obligation guaranteed under subsection (a)(6) or (7)
shall be treated, for purposes of this chapter, in
the same manner and to the same extent as an
obligation that aids in financing the construction, reconstruction, reconditioning, or purchase of a vessel, except with respect to provisions that by their nature can only be applied to
vessels.
(c) PRIORITIES FOR CERTAIN VESSELS.—
(1) VESSELS.—In guaranteeing or making a
commitment to guarantee an obligation under
this chapter, the Administrator shall give priority to—
(A) a vessel that is otherwise eligible for a
guarantee and is constructed with assistance
under subtitle D of the Maritime Security
Act of 2003 (46 U.S.C. 53101 note); and
(B) after applying subparagraph (A), a vessel that is otherwise eligible for a guarantee
and that the Secretary of Defense determines—
(i) is suitable for service as a naval auxiliary in time of war or national emergency; and
(ii) meets a shortfall in sealift capacity
or capability.
(2) TIME FOR DETERMINATION.—The Secretary
of Defense shall determine whether a vessel
satisfies paragraph (1)(B) not later than 30
days after receipt of a request from the Administrator for such a determination.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1606;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(D), (2)(A), (B), (b)(2), Jan. 6, 2006, 119
Stat. 3555, 3556; Pub. L. 109–479, title II, § 209,
Jan. 12, 2007, 120 Stat. 3617; Pub. L. 110–181, div.
C, title XXXV, § 3522(a)(2), (10)(B), (b), Jan. 28,
2008, 122 Stat. 596, 598.)

§ 53706

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

ment note set out under section 101 of this title and
Tables.

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

53706(a) ......

46 App.:1274(a) (less
last sentence).

June 29, 1936, ch. 858, title
XI, § 1104A(a) [§ 1104A formerly § 1104], as added
June 23, 1938, ch. 600, § 46,
52 Stat. 970; Aug. 4, 1939,
ch. 417, § 14, 53 Stat. 1187;
Sept. 28, 1950, ch. 1093, § 4,
64 Stat. 1078; Aug. 15, 1953,
ch. 513, § 2, 67 Stat. 626;
Sept. 3, 1954, ch. 1265, § 4,
68 Stat. 1269; Pub. L.
86–123, §§ 1(3), 2, July 31,
1959, 73 Stat. 269, 271; Pub.
L. 86–127, § 1(3), (4), July
31, 1959, 73 Stat. 273; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 86–685,
§§ 2, 3, Sept. 2, 1960, 74
Stat. 733; Pub. L. 90–341,
June 15, 1968, 82 Stat. 180;
Pub. L. 91–469, §§ 31, 32,
Oct. 21, 1970, 84 Stat. 1035;
restated Pub. L. 92–507, § 3,
Oct. 19, 1972, 86 Stat. 910;
Pub. L. 96–320, title II,
§ 202(b), Aug. 3, 1980, 94
Stat. 992; Pub. L. 96–561,
title II, § 220(3)(A), Dec. 22,
1980, 94 Stat. 3292; Pub. L.
97–31, § 12(136), Aug. 6, 1981,
95 Stat. 166; Pub. L. 98–595,
§ 1(2)–(5), Oct. 30, 1984, 98
Stat. 3130; § 1104 renumbered as § 1104A, Pub. L.
101–380,
title
IV,
§ 4115(f)(1), Aug. 18, 1990,
104 Stat. 521; Pub. L.
103–160,
title
XIII,
§ 1356(3)(A), Nov. 30, 1993,
107 Stat. 1813; Pub. L.
104–208, title I, § 101 [title
II, § 211(b)], Sept. 30, 1996,
110 Stat. 3009–41; Pub. L.
104–297,
title
III,
§ 302(a)(1)–(4), Oct. 11, 1996,
110 Stat. 3615.

53706(b) ......

46 App.:1274(a) (last
sentence).
46 App.:1273(i), (j).

53706(c) ......

June 29, 1936, ch.
XI, § 1103(i), (j),
Pub. L. 108–136,
§ 1014(a),
title
§ 3544, Nov. 24,
Stat. 1591, 1822.

Page 340

858, title
as added
title X,
XXXV,
2003, 117

In subsection (a), before paragraph (1), the words ‘‘To
be eligible for a guarantee under this chapter, an obligation must aid in any of the following’’ are substituted for ‘‘Pursuant to the authority granted under
section 1273(a) of this Appendix, the Secretary, upon
such terms as he shall prescribe, may guarantee or
make a commitment to guarantee, payment of the
principal of and interest on an obligation which aids
in’’ to eliminate unnecessary words.
In subsection (a)(2), the words ‘‘citizens of the United
States’’ are substituted for ‘‘citizens or nationals of the
United States or citizens of the Northern Mariana Islands’’ because of the definition of ‘‘citizen of the
United States’’ in chapter 1 of the revised title. Citizens of the Northern Mariana Islands became citizens
or non-citizen nationals of the United States (either of
which is a ‘‘citizen of the United States’’ as defined in
chapter 1 of the revised title) when the Covenant establishing the Commonwealth of the Northern Mariana Islands became effective November 4, 1986.
REFERENCES IN TEXT
Section 303(d)(4) of the Magnuson-Stevens Fishery
Conservation and Management Act, referred to in subsec. (a)(7)(A), is section 303(d)(4) of Pub. L. 94–265, which
is classified to section 1853(d)(4) of Title 16, Conservation.
The Maritime Security Act of 2003, referred to in subsec. (c)(1)(A), is title XXXV of div. C of Pub. L. 108–136,
Nov. 24, 2003, 117 Stat. 1788. Subtitle D of the Act
amended section 1273 of the former Appendix to this
title and enacted provisions set out as a note under section 53101 of this title. For complete classification of
this Act to the Code, see Short Title of 2003 Amend-

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(D), (2)(A), (B), (b)(2). See 2006 Amendment note below.
Subsec. (a)(3)(B)(iii). Pub. L. 110–181, § 3522(a)(10)(B),
incorporated the substance of the amendment by Pub.
L. 109–163, § 3507(a)(1)(D), into this section by inserting
‘‘or Administrator’’ after ‘‘Secretary’’. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set
out as a Legislative Purpose and Construction note preceding section 101 of this title.
Subsec. (c). Pub. L. 110–181, § 3522(a)(2), incorporated
the substance of the amendments by Pub. L. 109–163,
§ 3507(a)(2)(A), (B), (b)(2), by amending subsec. (c) generally. Prior to amendment, subsec. (c) read as follows:
‘‘PRIORITIES FOR CERTAIN VESSELS.—In guaranteeing
or making a commitment to guarantee an obligation
under this chapter, the Secretary shall give priority
to—
‘‘(1) a vessel that is otherwise eligible for a guarantee and is constructed with assistance under subtitle
D of the Maritime Security Act of 2003 (46 U.S.C. 53101
note); and
‘‘(2) after applying paragraph (1), a vessel that is
otherwise eligible for a guarantee and that the Secretary of Defense determines—
‘‘(A) is suitable for service as a naval auxiliary in
time of war or national emergency; and
‘‘(B) meets a shortfall in sealift capacity or capability.’’
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2007—Subsec. (a)(7). Pub. L. 109–479 amended par. (7)
generally. Prior to amendment, par. (7) read as follows:
‘‘Financing or refinancing (including reimbursement of
an obligor for expenditures previously made for) the
purchase of an individual fishing quota in accordance
with section 303(d)(4) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C.
1853(d)(4)).’’
2006—Pub. L. 109–163, § 3507(a)(1)(D), (2)(A), (B), (b)(2),
which directed the amendment of sections 1273(i), (j)
and 1274(a) of the former Appendix to this title from
which this section was derived, was repealed by Pub. L.
110–181, § 3522(b). See 2008 Amendment notes for subsecs.
(a)(3)(B)(iii) and (c) and Historical and Revision notes
above.
PROHIBITION OF NEW LOANS FOR CONSTRUCTION OF
FISHING VESSELS UNDER CERTAIN CONDITIONS
Pub. L. 104–297, title III, § 302(b)(2), Oct. 11, 1996, 110
Stat. 3615, as amended by Pub. L. 105–277, div. C, title
II, § 212, Oct. 21, 1998, 112 Stat. 2681–635; Pub. L. 107–206,
title I, § 1103, Aug. 2, 2002, 116 Stat. 884, provided that:
‘‘No loans may be provided or guaranteed by the Federal Government for the construction or rebuilding of
a vessel intended for use as a fishing vessel (as defined
in section 2101 of title 46, United States Code), if such
vessel will be greater than 165 feet in registered length,
of more than 750 gross registered tons (as measured
under chapter 145 of title 46) or 1,900 gross registered
tons [(]as measured under chapter 143 of that title), or
have an engine or engines capable of producing a total
of more than 3,000 shaft horsepower, after such construction or rebuilding is completed. This prohibition
shall not apply to vessels to be used in the menhaden
fishery or in tuna purse seine fisheries outside the exclusive economic zone of the United States or the area
of the South Pacific Regional Fisheries Treaty.’’
[Pub. L. 107–206, title I, § 1103, Aug. 2, 2002, 116 Stat.
884, which directed the amendment of title II of division C of Public Law 105–277 by substituting ‘‘of more
than 750 gross registered tons (as measured under chapter 145 of title 46) or 1,900 gross registered tons as measured under chapter 143 of that title)’’ for ‘‘of more than

Page 341

§ 53707

TITLE 46—SHIPPING

750 gross registered tons’’, was executed to section
302(b)(2) of Pub. L. 104–297, set out above, as amended by
section 212 of Pub. L. 105–277, to reflect the probable intent of Congress.]

§ 53707. Findings related to obligors and operators
(a) RESPONSIBLE OBLIGOR.—The Secretary or
Administrator may not guarantee or make a
commitment to guarantee an obligation under
this chapter unless the Secretary or Administrator finds that the obligor is responsible and
has the ability, experience, financial resources,
and other qualifications necessary for the adequate operation and maintenance of each vessel
that will serve as security for the guarantee.
(b) OPERATORS OF LINER VESSELS.—The Administrator may not guarantee or make a commitment to guarantee a loan for the construction, reconstruction, or reconditioning of a liner
vessel under this chapter unless the Chairman of
the Federal Maritime Commission certifies that
the operator of the vessel has not been found by
the Commission to have committed, within the
previous 5 years—
(1) a violation of part A of subtitle IV of this
title that involves unjust or unfair discriminatory treatment or undue or unreasonable prejudice or disadvantage with respect to a United
States shipper, ocean transportation intermediary, ocean common carrier, or port; or
(2) a violation of part B of subtitle IV of this
title.
(c) OPERATORS OF FISHING VESSELS.—The Secretary may not guarantee or make a commitment to guarantee a loan for the construction,
reconstruction, or reconditioning of a fishing
vessel under this chapter if the operator of the
vessel has been—
(1) held liable, or the vessel has been held
liable in rem, for a civil penalty under section
308 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1858)
and the operator has not paid the penalty;
(2) found guilty of an offense under section
309 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1859)
and not paid the assessed fine or served the assessed sentence;
(3) held liable for a civil or criminal penalty
under section 105 of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1375) and not paid
the assessed fine or served the assessed sentence; or
(4) held liable for a civil penalty by the
Coast Guard under this title or title 33 and not
paid the assessed fine.
(d) WAIVERS CONCERNING FINANCIAL CONDITION.—The Secretary or Administrator shall prescribe regulations concerning circumstances
under which waivers of, or exceptions to, otherwise applicable regulatory requirements concerning financial condition can be made. The
regulations shall require that—
(1) the economic soundness requirements in
section 53708(a) of this title are met after the
waiver of the financial condition requirement;
and
(2) if the Secretary or Administrator considers necessary, the waiver shall provide for the

imposition of other requirements on the obligor designed to compensate for any significant
increase in risk associated with the obligor’s
failure to meet regulatory requirements applicable to financial condition.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1607;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(D), (b)(3)(B), (C), (c)(1), Jan. 6, 2006,
119 Stat. 3555, 3556; Pub. L. 110–181, div. C, title
XXXV, § 3522(a)(3), (b), Jan. 28, 2008, 122 Stat. 597,
598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53707(a) ......

46 App.:1274(b)(1).

53707(b) ......

46 App.:1273a(a).

53707(c) ......
53707(d) ......

46 App.:1273a(b).
46 App.:1274(d)(4).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1104A(b)(1) [§ 1104A
formerly § 1104], as added
June 23, 1938, ch. 600, § 46,
52 Stat. 970; Aug. 4, 1939,
ch. 417, § 14, 53 Stat. 1187;
Sept. 28, 1950, ch. 1093, § 4,
64 Stat. 1078; Aug. 15, 1953,
ch. 513, § 2, 67 Stat. 626;
Sept. 3, 1954, ch. 1265, § 4,
68 Stat. 1269; Pub. L.
86–123, §§ 1(3), 2, July 31,
1959, 73 Stat. 269, 271; Pub.
L. 86–127, § 1(3), (4), July
31, 1959, 73 Stat. 273; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 86–685,
§§ 2, 3, Sept. 2, 1960, 74
Stat. 733; Pub. L. 90–341,
June 15, 1968, 82 Stat. 180;
Pub. L. 91–469, §§ 31, 32,
Oct. 21, 1970, 84 Stat. 1035;
restated Pub. L. 92–507, § 3,
Oct. 19, 1972, 86 Stat. 911;
Pub. L. 97–31, § 12(136),
Aug. 6, 1981, 95 Stat. 166;
§ 1104
renumbered
as
§ 1104A, Pub. L. 101–380,
title IV, § 4115(f)(1), Aug.
18, 1990, 104 Stat. 521.
Pub. L. 105–258, title IV,
§ 401, Oct. 14, 1998, 112
Stat. 1916.
June 29, 1936, ch. 858, title
XI, § 1104A(d)(4), as added
Pub. L. 108–136, title
XXXV, § 3522, Nov. 24, 2003,
117 Stat. 1800.

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(D), (b)(3)(B), (C), (c)(1). See 2006
Amendment note below.
Subsec. (a). Pub. L. 110–181, § 3522(a)(3)(A), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(D), into this section by inserting ‘‘or
Administrator’’ after ‘‘Secretary’’ in two places. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
Subsec. (b). Pub. L. 110–181, § 3522(a)(3)(B), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(c)(1), into this section by substituting
‘‘Administrator’’ for ‘‘Secretary of Transportation’’.
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
Subsec. (c). Pub. L. 110–181, § 3522(a)(3)(C), struck out
‘‘of Commerce’’ after ‘‘The Secretary’’ in introductory
provisions.
Subsec. (d). Pub. L. 110–181, § 3522(a)(3)(A), (D), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(b)(3)(B), (C), into this section by inserting
‘‘or Administrator’’ after ‘‘Secretary’’ in introductory
provisions and in par. (2) by inserting ‘‘if the Secretary
or Administrator considers necessary,’’ before ‘‘the
waiver’’ and substituting ‘‘any significant increase in’’
for ‘‘the increased’’. See 2006 Amendment note below
and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section
101 of this title.

§ 53708

TITLE 46—SHIPPING

2006—Pub. L. 109–163, § 3507(a)(1)(D), (b)(3)(B), (C),
(c)(1), which directed the amendment of sections
1273a(a) and 1274(b)(1), (d)(4)(B) of the former Appendix
to this title from which this section was derived in
part, was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment notes for subsecs. (a), (b), and (d) and Historical and Revision notes above.

§ 53708. Findings related to economic soundness
(a) BY ADMINISTRATOR.—The Administrator
may not guarantee or make a commitment to
guarantee an obligation under this chapter unless the Administrator finds that the property
or project for which the obligation will be executed will be economically sound. In making
that finding, the Administrator shall consider—
(1) the need in the particular segment of the
maritime industry for new or additional capacity, including any impact on existing
equipment for which a guarantee under this
chapter is in effect;
(2) the market potential for employment of
the vessel over the life of the guarantee;
(3) projected revenues and expenses associated with employment of the vessel;
(4) any charter, contract of affreightment,
transportation agreement, or similar agreement or undertaking relevant to the employment of the vessel;
(5) other relevant criteria; and
(6) for inland waterways, the need for technical improvements, including increased fuel
efficiency or improved safety.

Page 342

aspects of an application under this chapter require independent analysis to be conducted by
third party experts due to risk factors associated with markets, technology, or financial
structures. A third party independent analysis
conducted under this subsection shall be performed by a private sector expert in assessing
such risk factors who is selected by the Secretary or Administrator.
(e) ADDITIONAL EQUITY BECAUSE OF INCREASED
RISKS.—Notwithstanding any other provision of
this chapter, the Secretary or Administrator
may make a determination that an application
under this title requires additional equity because of increased risk factors associated with
markets, technology, or financial structures.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1608;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(D), (2)(D), (b)(3)(A), (4), Jan. 6, 2006,
119 Stat. 3555, 3556; Pub. L. 110–181, div. C, title
XXXV, § 3522(a)(4), (b), Jan. 28, 2008, 122 Stat. 597,
598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

53708(a) ......

46 App.:1274(d)(1)(A).

June 29, 1936, ch. 858, title
XI,
§ 1104A(d)(1),
(2)
[§ 1104A formerly § 1104], as
added June 23, 1938, ch.
600, § 46, 52 Stat. 970; Aug.
4, 1939, ch. 417, § 14, 53
Stat. 1187; Sept. 28, 1950,
ch. 1093, § 4, 64 Stat. 1078;
Aug. 15, 1953, ch. 513, § 2, 67
Stat. 626; Sept. 3, 1954, ch.
1265, § 4, 68 Stat. 1269; Pub.
L. 86–123, §§ 1(3), 2, July 31,
1959, 73 Stat. 269, 271; Pub.
L. 86–127, § 1(3), (4), July
31, 1959, 73 Stat. 273; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 86–685,
§§ 2, 3, Sept. 2, 1960, 74
Stat. 733; Pub. L. 90–341,
June 15, 1968, 82 Stat. 180;
Pub. L. 91–469, §§ 31, 32,
Oct. 21, 1970, 84 Stat. 1035;
restated Pub. L. 92–507, § 3,
Oct. 19, 1972, 86 Stat. 910;
Pub. L. 96–561, title II,
§ 220(3)(C), Dec. 22, 1980, 94
Stat. 3293; Pub. L. 97–31,
§ 12(136), Aug. 6, 1981, 95
Stat. 166; Pub. L. 97–35,
title XVI, § 1606(c), Aug.
13, 1981, 95 Stat. 752; Pub.
L. 98–595, § 1(6), Oct. 30,
1984, 98 Stat. 3130; § 1104 renumbered as § 1104A, Pub.
L.
101–380,
title
IV,
§ 4115(f)(1), Aug. 18, 1990,
104 Stat. 521.

53708(b) ......
53708(c) ......
53708(d) ......

46 App.:1274(d)(1)(B).
46 App.:1274(d)(2).
46 App.:1274(f)(2).

53708(e) ......

46 App.:1274(f)(3).

(b) BY SECRETARY.—The Secretary may not
guarantee or make a commitment to guarantee
an obligation under this chapter unless the Secretary finds, at or prior to the time the commitment is made or the guarantee becomes effective, that—
(1) the property or project for which the obligation will be executed will be economically
sound; and
(2) for a fishing vessel, the purpose of the financing or refinancing is consistent with—
(A) the wise use of the fisheries resources
and the development, advancement, management, conservation, and protection of the
fisheries resources; or
(B) the need for technical improvements,
including increased fuel efficiency or improved safety.
(c) USED FISHING VESSELS AND FACILITIES.—
The Secretary may not guarantee or make a
commitment to guarantee an obligation under
this chapter for the purchase of a used fishing
vessel or used fishery facility unless the vessel
or facility will be—
(1) reconstructed or reconditioned in the
United States and will contribute to the development of the United States fishing industry;
or
(2) used—
(A) in the harvesting of fish from an underused fishery; or
(B) for a purpose described in the definition of ‘‘fishery facility’’ in section 53701 of
this title with respect to an underused fishery.
(d) INDEPENDENT ANALYSIS.—The Secretary or
Administrator may make a determination that

June 29, 1936, ch. 858, title
XI, § 1104A(f)(2), (3), as
added Pub. L. 108–136, title
XXXV, § 3526(2)(C), Nov.
24, 2003, 117 Stat. 1801.

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(D), (2)(D), (b)(3)(A), (4). See 2006
Amendment note below.
Subsec. (a). Pub. L. 110–181, § 3522(a)(4)(A), (B), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(2)(D), (b)(3)(A), into this section by substituting in the heading, ‘‘Administrator’’ for ‘‘Secretary of Transportation’’ and, in introductory provisions, ‘‘Administrator may’’ for ‘‘Secretary of Transportation may’’, ‘‘Administrator finds’’ for ‘‘Secretary
finds’’, and ‘‘Administrator shall’’ for ‘‘Secretary
shall’’. See 2006 Amendment note below and section
18(a) of Pub. L. 109–304, set out as a Legislative Purpose

Page 343

§ 53709

TITLE 46—SHIPPING

and Construction note preceding section 101 of this
title.
Subsec. (b). Pub. L. 110–181, § 3522(a)(4)(C), (D), struck
out ‘‘of Commerce’’ after ‘‘Secretary’’ in heading and
the first time appearing in introductory provisions.
Subsec. (c). Pub. L. 110–181, § 3522(a)(4)(D), struck out
‘‘of Commerce’’ after ‘‘Secretary’’.
Subsec. (d). Pub. L. 110–181, § 3522(a)(4)(E), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(D), (b)(4)(A), (C), into this section by
inserting ‘‘or Administrator’’ after ‘‘The Secretary’’
and substituting ‘‘or financial structures. A third party
independent analysis conducted under this subsection
shall be performed by a private sector expert in assessing such risk factors who is selected by the Secretary
or Administrator.’’ for ‘‘financial structures, or other
risk factors identified by the Secretary. Any independent analysis conducted under this subsection shall be
performed by a party chosen by the Secretary.’’ See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
Subsec. (e). Pub. L. 110–181, § 3522(a)(4)(F), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(D), (b)(4)(B), into this section by inserting ‘‘or Administrator’’ after ‘‘chapter, the Secretary’’ and substituting ‘‘or financial structures’’ for
‘‘financial structures, or other risk factors identified
by the Secretary’’. See 2006 Amendment note below and
section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.
2006—Pub. L. 109–163, § 3507(a)(1)(D), (2)(D), (b)(3)(A),
(4), which directed the amendment of section
1274(d)(1)(A), (f)(2), (3) of the former Appendix to this
title from which this section was derived in part, was
repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes for subsecs. (a), (d), and (e) and Historical
and Revision notes above.

§ 53709. Amount of obligations
(a) IN GENERAL.—The principal of an obligation may not be guaranteed in an amount greater than the amount determined by multiplying
the percentage applicable under subsection (b)
by—
(1) the amount paid by or for the account of
the obligor (as determined by the Secretary or
Administrator, which determination shall be
conclusive) for the construction, reconstruction, or reconditioning of the vessel used as security for the guarantee; or
(2) if the obligor creates an escrow fund
under section 53715 of this title, the actual
cost of the vessel.
(b) LIMITATIONS ON AMOUNT BORROWED.—
(1) IN GENERAL.—Except as otherwise provided, the principal amount of an obligation
guaranteed under this chapter may not exceed
75 percent of the actual cost or depreciated actual cost, as determined by the Secretary or
Administrator, of the vessel used as security
for the guarantee.
(2) CERTAIN APPROVED VESSELS.—The principal amount may not exceed 87.5 percent of
the actual cost or depreciated actual cost if—
(A) the size and speed of the vessel are approved by the Secretary or Administrator;
(B) the vessel is or would have been eligible for mortgage aid for construction under
section 509 of the Merchant Marine Act, 1936,
or would have been eligible except that the
vessel was built with a construction-differential subsidy and the subsidy has been
repaid; and

(C) the vessel is of a type described in that
section for which the minimum down payment required by that section is 12.5 percent
of the cost of the vessel.
(3) BARGES.—For a barge constructed without a construction-differential subsidy or for
which the subsidy has been repaid, the principal amount may not exceed 87.5 percent of
the actual cost or depreciated actual cost.
(4) FISHING VESSELS AND FISHERY FACILITIES.—For a fishing vessel or fishery facility,
the principal amount may not exceed 80 percent of the actual cost or depreciated actual
cost. However, debt for the vessel or facility
may not be placed through the Federal Financing Bank.
(5) OTEC.—For an ocean thermal energy
conversion facility or plantship constructed
without a construction-differential subsidy,
the principal amount may not exceed 87.5 percent of the actual cost or depreciated actual
cost of the facility or plantship.
(6) ELIGIBLE EXPORT VESSELS.—For an eligible export vessel, the principal amount may
not exceed 87.5 percent of the actual cost or
depreciated actual cost.
(c) SECURITY INVOLVING MULTIPLE VESSELS.—
The principal amount of an obligation having
more than one vessel as security for the guarantee may not exceed the sum of the principal
amounts allowable for all the vessels.
(d) PROHIBITION ON UNIFORM PERCENTAGE LIMITATIONS.—The Secretary or Administrator may
not establish a percentage under any provision
of subsection (b) that is to be applied uniformly
to all guarantees or commitments to guarantee
made under that provision.
(e) PROHIBITION ON MINIMUM PRINCIPAL
AMOUNT.—The Secretary may not establish, as a
condition of eligibility for a guarantee under
this chapter, a minimum principal amount for
an obligation covering the reconstruction or reconditioning of a fishing vessel or fishery facility. For purposes of this chapter, the reconstruction or reconditioning of a fishing vessel or fishery facility does not include the routine minor
repair or maintenance of the vessel or facility.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1609;
Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C),
(D), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181,
div. C, title XXXV, § 3522(a)(10)(B), (b), Jan. 28,
2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53709(a) ......

Source (U.S. Code)
46 App.:1273(c).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1103(c), as added June
23, 1938, ch. 600, § 46, 52
Stat. 969; Aug. 15, 1953, ch.
513, § 1, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 3, 68
Stat. 1268; June 25, 1956,
ch. 438, 70 Stat. 332; Aug.
7, 1956, ch. 1026, § 1(a), (c),
(d), 70 Stat. 1087; Pub. L.
91–469, § 30, Oct. 21, 1970, 84
Stat. 1035; restated Pub.
L. 92–507, § 3, Oct. 19, 1972,
86 Stat. 910; Pub. L. 97–31,
§ 12(136), Aug. 6, 1981, 95
Stat. 166.

§ 53710

TITLE 46—SHIPPING

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section
53709(b) ......

53709(c) ......
53709(d) ......

53709(e) ......

Source (U.S. Code)
46 App.:1274(b)(2).

46 App.:1274(c)(1)
(last sentence).
46 App.:1274(i).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1104A(b)(2), (last 2
sentences), (c)(1) (last sentence) [§ 1104A formerly
§ 1104], as added June 23,
1938, ch. 600, § 46, 52 Stat.
970; Aug. 4, 1939, ch. 417,
§ 14, 53 Stat. 1187; Sept. 28,
1950, ch. 1093, § 4, 64 Stat.
1078; Aug. 15, 1953, ch. 513,
§ 2, 67 Stat. 626; Sept. 3,
1954, ch. 1265, § 4, 68 Stat.
1269; Pub. L. 86–123, §§ 1(3),
2, July 31, 1959, 73 Stat.
269, 271; Pub. L. 86–127,
§ 1(3), (4), July 31, 1959, 73
Stat. 273; Pub. L. 86–518,
§ 1, June 12, 1960, 74 Stat.
216; Pub. L. 86–685, §§ 2, 3,
Sept. 2, 1960, 74 Stat. 733;
Pub. L. 90–341, June 15,
1968, 82 Stat. 180; Pub. L.
91–469, §§ 31, 32, Oct. 21,
1970, 84 Stat. 1035; restated
Pub. L. 92–507, § 3, Oct. 19,
1972, 86 Stat. 910; Pub. L.
95–257, Apr. 7, 1978, 92
Stat. 194; Pub. L. 96–320,
title II, § 202(c), Aug. 3,
1980, 94 Stat. 992; Pub. L.
96–561, title II, § 220(3)(B),
Dec. 22, 1980, 94 Stat. 3293;
Pub. L. 97–31, § 12(136),
Aug. 6, 1981, 95 Stat. 166;
Pub. L. 99–509, title V,
§ 5003, Oct. 21, 1986, 100
Stat. 1912; § 1104 renumbered as § 1104A, Pub. L.
101–380,
title
IV,
§ 4115(f)(1), Aug. 18, 1990,
104 Stat. 521; Pub. L.
103–160, div. A, title XIII,
§ 1356(3)(B), (C), Nov. 30,
1993, 107 Stat. 1813; Pub. L.
104–297, title III, § 302(a)(5),
Oct. 11, 1996, 110 Stat. 3615.
June 29, 1936, ch. 858, title
XI, § 1104A(i), as added
Pub. L. 103–160, div. A,
title XIII, § 1356(3)(E), Nov.
30, 1993, 107 Stat. 1814.

46 App.:1274(b) (last
2 sentences).

Subsections (a) and (d) are substituted for the source
provisions for clarity and to eliminate unnecessary
words.
REFERENCES IN TEXT
Section 509 of the Merchant Marine Act, 1936, referred
to in subsec. (b)(2)(B), is section 509 of act June 29, 1936,
ch. 858, 49 Stat. 1985, which is set out as a note under
section 53101 of this title.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(C), (D). See 2006 Amendment note
below.
Subsecs. (a)(1), (b)(1), (2)(A), (d). Pub. L. 110–181,
§ 3522(a)(10)(B), incorporated the substance of the
amendment by Pub. L. 109–163, § 3507(a)(1)(C), (D), into
this section by inserting ‘‘or Administrator’’ after
‘‘Secretary’’. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.
2006—Pub. L. 109–163, § 3507(a)(1)(C), (D), which directed the amendment of sections 1273(c) and 1274(b)(2),
(c)(1), (i) of the former Appendix to this title from
which this section was derived in part, was repealed by
Pub. L. 110–181, § 3522(b). See 2008 Amendment note for
subsecs. (a)(1), (b)(1), (2)(A), (d) and Historical and Revision notes above.

§ 53710. Contents of obligations
(a) IN GENERAL.—An obligation guaranteed
under this chapter must—

Page 344

(1) provide for payments by the obligor satisfactory to the Secretary or Administrator;
(2) provide for interest (exclusive of guarantee fees and other fees) at a rate not more
than the annual rate on the unpaid principal
that the Secretary or Administrator determines is reasonable, considering the range of
interest rates prevailing in the private market
for similar loans and the risks assumed by the
Secretary or Administrator;
(3) have a maturity date satisfactory to the
Secretary or Administrator, but—
(A) not more than 25 years after the date
of delivery of the vessel used as security for
the guarantee; or
(B) if the vessel has been reconstructed or
reconditioned, not more than the later of—
(i) 25 years after the date of delivery of
the vessel; or
(ii) the remaining years of useful life of
the vessel as determined by the Secretary
or Administrator; and
(4) provide, or a related agreement must provide, that if the vessel used as security for the
guarantee is a delivered vessel, the vessel shall
be—
(A) in class A–1, American Bureau of Shipping, or meet other standards acceptable to
the Secretary or Administrator, with all required certificates, including marine inspection certificates of the Coast Guard or, in
the case of an eligible export vessel, of the
appropriate foreign authorities under a treaty, convention, or other international agreement to which the United States is a party,
and with all outstanding requirements and
recommendations necessary for class retention accomplished, unless the Secretary or
Administrator permits a deferment of repairs necessary to meet these requirements;
and
(B) well equipped, in good repair, and in
every respect seaworthy and fit for service.
(b) PROVISIONS FOR CERTAIN PASSENGER VESSELS.—

(1) IN GENERAL.—With the Administrator’s
approval, if the vessel used as security for the
guarantee is a passenger vessel having the
tonnage, speed, passenger accommodations,
and other characteristics described in section
503 of the Merchant Marine Act, 1936, an obligation guaranteed under this chapter or a related agreement may provide that—
(A) the only recourse by the United States
Government against the obligor for payments under the guarantee will be repossession of the vessel and assignment of insurance claims; and
(B) the obligor’s liability for payments
under the guarantee will be satisfied and discharged by the surrender of the vessel and
all interest in the vessel to the Government
in the condition described in paragraph (2).
(2) SURRENDER OF VESSEL.—
(A) IN GENERAL.—On surrender, the vessel
must be—
(i) free and clear of all liens and encumbrances except the security interest conveyed to the Administrator under this
chapter;

Page 345

(ii) in class; and
(iii) in as good order and condition (ordinary wear and tear excepted) as when acquired by the obligor.
(B) COVERING DEFICIENCIES BY INSURANCE.—
To the extent covered by insurance, a deficiency related to a requirement in subparagraph (A) may be satisfied by assignment of
the obligor’s insurance claims to the Government.
(c) OTHER PROVISIONS TO PROTECT SECURITY
INTERESTS.—An obligation guaranteed under
this chapter and any related agreement must
contain other provisions for the protection of
the security interests of the Government (including acceleration, assumption, and subrogation provisions and the issuance of notes by the
obligor to the Secretary or Administrator), liens
and releases of liens, payment of taxes, and
other matters that the Secretary or Administrator may prescribe.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1610;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(D), (2)(C), Jan. 6, 2006, 119 Stat. 3555;
Pub. L. 110–181, div. C, title XXXV, § 3522(a)(5),
(9)(A), (10)(B), (b), Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53710(a)(1) ..

53710(a)(2) ..
53710(a)(3) ..
53710(a)(4) ..
53710(b) ......
53710(c) ......

§ 53711

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1274(b)(4).

46
46
46
46
46

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1104A(b)(3)–(7), (h)
[§ 1104A formerly § 1104], as
added June 23, 1938, ch.
600, § 46, 52 Stat. 970; Aug.
4, 1939, ch. 417, § 14, 53
Stat. 1187; Sept. 28, 1950,
ch. 1093, § 4, 64 Stat. 1078;
Aug. 15, 1953, ch. 513, § 2, 67
Stat. 626; Sept. 3, 1954, ch.
1265, § 4, 68 Stat. 1269; Pub.
L. 86–123, §§ 1(3), 2, July 31,
1959, 73 Stat. 269, 271; Pub.
L. 86–127, § 1(3), (4), July
31, 1959, 73 Stat. 273; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 86–685,
§§ 2, 3, Sept. 2, 1960, 74
Stat. 733; Pub. L. 90–341,
June 15, 1968, 82 Stat. 180;
Pub. L. 91–469, §§ 31, 32,
Oct. 21, 1970, 84 Stat. 1035;
restated Pub. L. 92–507, § 3,
Oct. 19, 1972, 86 Stat. 911,
914; Pub. L. 97–31, § 12(136),
Aug. 6, 1981, 95 Stat. 166;
Pub. L. 98–595, § 1(7), Oct.
30, 1984, 98 Stat. 3131; § 1104
renumbered as § 1104A,
Pub. L. 101–380, title IV,
§ 4115(f)(1), Aug. 18, 1990,
104 Stat. 521; Pub. L.
103–160,
title
XIII,
§ 1356(3)(C), Nov. 30, 1993,
107 Stat. 1813.

App.:1274(b)(5).
App.:1274(b)(3).
App.:1274(b)(6).
App.:1274(b)(7).
App.:1274(h).

During review of this bill, the American Bureau of
Shipping, through counsel, explained that it disagrees
with an existing interpretation by the Maritime Administration of language restated in subsection
(a)(4)(A) of this section, and requested the Committee
to clarify that this codification should not be construed
as a ratification of that regulatory interpretation. The
Committee therefore states that this codification
should not be construed as an expression of any opinion
whatsoever concerning any such administrative interpretation.
In subsection (a)(3), the words ‘‘subject to the provisions of paragraph (2) of subsection (c) of this section’’
are omitted as unnecessary.

In subsection (a)(4)(B), the words ‘‘well equipped, in
good repair, and in every respect seaworthy and fit for
service’’ are substituted for ‘‘tight, stanch, strong, and
well and sufficiently tackled, appareled, furnished, and
equipped, and in every respect seaworthy and in good
running condition and repair, and in all respects fit for
service’’ to eliminate unnecessary words.
In subsection (b)(1), the reference to section 503 of the
Merchant Marine Act, 1936, is substituted for the reference to ‘‘subchapter V of this chapter’’ because the
relevant characteristics referred to in the text are contained in that section and because that section is part
of the construction-differential subsidy program, which
is not being restated.
REFERENCES IN TEXT
Section 503 of the Merchant Marine Act, 1936, referred
to in subsec. (b)(1), is section 503 of act June 29, 1936, ch.
858, 49 Stat. 1985, which is set out as a note under section 53101 of this title.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(D), (2)(C). See 2006 Amendment note
below.
Subsec. (a). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(D), into this section by inserting ‘‘or
Administrator’’ after ‘‘Secretary’’ wherever appearing.
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
Subsec. (b). Pub. L. 110–181, § 3522(a)(5), (9)(A), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(2)(C), into this section by substituting
‘‘Administrator’s’’ for ‘‘Secretary’s’’ in introductory
provisions of par. (1) and ‘‘Administrator’’ for ‘‘Secretary’’ in par. (2)(A)(i). See 2006 Amendment note
below and section 18(a) of Pub. L. 109–304, set out as a
Legislative Purpose and Construction note preceding
section 101 of this title.
Subsec. (c). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(D), into this section by inserting ‘‘or
Administrator’’ after ‘‘Secretary’’ in two places. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(D), (2)(C), which directed the amendment of section 1274(b)(3)–(7), (h) of
the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181,
§ 3522(b). See 2008 Amendment notes for subsecs. (a), (b),
and (c) and Historical and Revision notes above.

§ 53711. Security interest
(a) IN GENERAL.—The Secretary or Administrator may guarantee an obligation under this
chapter only if the obligor conveys or agrees to
convey to the Secretary or Administrator a security interest the Secretary or Administrator
considers necessary to protect the interest of
the United States Government.
(b) MULTIPLE VESSELS AND TYPES OF SECURITY.—The security interest may relate to more
than one vessel and may consist of more than
one type of security. If the security interest relates to more than one vessel, the obligation
may have the latest maturity date allowable
under section 53710(a)(3) of this title for any of
the vessels used as security for the guarantee.
However, the Secretary or Administrator may
require such payments of principal prior to maturity, with respect to all related obligations, as
the Secretary or Administrator considers necessary to maintain adequate security for the
guarantee.

§ 53712

TITLE 46—SHIPPING

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1612;
Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C),
(D), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181,
div. C, title XXXV, § 3522(a)(10)(B), (b), Jan. 28,
2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53711(a) ......

46 App.:1273(b).

53711(b) ......

46 App.:1274(c)(1)
(1st sentence), (2).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1103(b), as added June
23, 1938, ch. 600, § 46, 52
Stat. 969; Aug. 15, 1953, ch.
513, § 1, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 3, 68
Stat. 1268; June 25, 1956,
ch. 438, 70 Stat. 332; Aug.
7, 1956, ch. 1026, § 1(a), (c),
(d), 70 Stat. 1087; Pub. L.
91–469, § 30, Oct. 21, 1970, 84
Stat. 1035; restated Pub.
L. 92–507, § 3, Oct. 19, 1972,
86 Stat. 910; Pub. L. 97–31,
§ 12(136), Aug. 6, 1981, 95
Stat. 166.
June 29, 1936, ch. 858, title
XI, § 1104A(c)(1) (1st sentence), (2) [§ 1104A formerly § 1104], as added
June 23, 1938, ch. 600, § 46,
52 Stat. 970; Aug. 4, 1939,
ch. 417, § 14, 53 Stat. 1187;
Sept. 28, 1950, ch. 1093, § 4,
64 Stat. 1078; Aug. 15, 1953,
ch. 513, § 2, 67 Stat. 626;
Sept. 3, 1954, ch. 1265, § 4,
68 Stat. 1269; Pub. L.
86–123, §§ 1(3), 2, July 31,
1959, 73 Stat. 269, 271; Pub.
L. 86–127, § 1(3), (4), July
31, 1959, 73 Stat. 273; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 86–685,
§§ 2, 3, Sept. 2, 1960, 74
Stat. 733; Pub. L. 90–341,
June 15, 1968, 82 Stat. 180;
Pub. L. 91–469, §§ 31, 32,
Oct. 21, 1970, 84 Stat. 1035;
restated Pub. L. 92–507, § 3,
Oct. 19, 1972, 86 Stat. 912;
Pub. L. 97–31, § 12(136),
Aug. 6, 1981, 95 Stat. 166;
§ 1104
renumbered
as
§ 1104A, Pub. L. 101–380,
title IV, § 4115(f)(1), Aug.
18, 1990, 104 Stat. 521.

In subsection (a), the words ‘‘a security interest the
Secretary considers necessary’’ are substituted for
‘‘such security interest, which may include a mortgage
or mortgages on a vessel or vessels, as the Secretary
may reasonably require’’ to eliminate unnecessary
words.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(C), (D). See 2006 Amendment note
below.
Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(C), (D), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing.
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(C), (D), which directed the amendment of sections 1273(b) and 1274(c) of
the former Appendix to this title from which this section was derived in part, was repealed by Pub. L.
110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above.

§ 53712. Monitoring financial condition and operations of obligor
(a) IN GENERAL.—The Secretary or Administrator shall monitor the financial condition and
operations of the obligor on a regular basis during the term of the guarantee. The Secretary or

Page 346

Administrator shall document the results of the
monitoring on an annual or quarterly basis depending on the condition of the obligor. If the
Secretary or Administrator determines that the
financial condition of the obligor warrants additional protections to the Secretary or Administrator, the Secretary or Administrator shall
take appropriate action under subsection (b). If
the Secretary or Administrator determines that
the financial condition of the obligor jeopardizes
its continued ability to perform its responsibilities in connection with the guarantee of an obligation by the Secretary or Administrator, the
Secretary or Administrator shall make an immediate determination whether default should
take place and whether further measures described in subsection (b) should be taken to protect the interests of the Secretary or Administrator while ensuring that program objectives
are met.
(b) CONTRACT PROVISIONS TO PROTECT SECRETARY OR ADMINISTRATOR.—The Secretary or
Administrator shall include provisions in a loan
agreement with an obligor that provides additional authority to the Secretary or Administrator to take action to limit potential losses in
connection with a defaulted loan or a loan that
is in jeopardy due to the deteriorating financial
condition of the obligor. If the Secretary or Administrator has waived a requirement under section 53707(d) of this title, the loan agreement
shall include requirements for additional payments, collateral, or equity contributions to
meet the waived requirement upon the occurrence of verifiable conditions indicating that the
obligor’s financial condition enables the obligor
to meet the waived requirement.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1612;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(D), (b)(6), Jan. 6, 2006, 119 Stat. 3555,
3556; Pub. L. 110–181, div. C, title XXXV,
§ 3522(a)(6), (10)(B), (b), Jan. 28, 2008, 122 Stat.
598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53712(a) ......

46 App.:1274(k).

53712(b) ......

46 App.:1274(m).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1104A(k), (m), as
added Pub. L. 108–136, title
XXXV, § 3523, Nov. 24, 2003,
117 Stat. 1800.

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(D), (b)(6). See 2006 Amendment note
below.
Pub. L. 110–181, § 3522(a)(6), (10)(B), incorporated the
substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(D), (b)(6), into this section by inserting ‘‘or
Administrator’’ after ‘‘Secretary’’ wherever appearing
and substituting ‘‘If the Secretary or Administrator
has waived a requirement under section 53707(d) of this
title, the loan agreement shall include requirements
for additional payments, collateral, or equity contributions to meet the waived requirement upon the occurrence of verifiable conditions indicating that the obligor’s financial condition enables the obligor to meet
the waived requirement.’’ for ‘‘These provisions include
requirements for additional collateral or greater equity
contributions that are effective upon the occurrence of
verifiable conditions relating to the obligor’s financial
condition or the status of the vessel or shipyard

Page 347

§ 53714

TITLE 46—SHIPPING

project.’’ See 2006 Amendment note below and section
18(a) of Pub. L. 109–304, set out as a Legislative Purpose
and Construction note preceding section 101 of this
title.
2006—Pub. L. 109–163, § 3507(a)(1)(D), (b)(6), which directed the amendment of section 1274(k), (m) of the
former Appendix to this title from which this section
was derived, was repealed by Pub. L. 110–181, § 3522(b).
See 2008 Amendment notes and Historical and Revision
notes above.

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

53713(a) ......

46 App.:1274(f)(1)
(words before proviso).

June 29, 1936, ch. 858, title
XI, § 1104A(f)(1), (4) [§ 1104A
formerly § 1104], as added
June 23, 1938, ch. 600, § 46,
52 Stat. 970; Aug. 4, 1939,
ch. 417, § 14, 53 Stat. 1187;
Sept. 28, 1950, ch. 1093, § 4,
64 Stat. 1078; Aug. 15, 1953,
ch. 513, § 2, 67 Stat. 626;
Sept. 3, 1954, ch. 1265, § 4,
68 Stat. 1269; Pub. L.
86–123, §§ 1(3), 2, July 31,
1959, 73 Stat. 269, 271; Pub.
L. 86–127, § 1(3), (4), July
31, 1959, 73 Stat. 273; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 86–685,
§§ 2, 3, Sept. 2, 1960, 74
Stat. 733; Pub. L. 90–341,
June 15, 1968, 82 Stat. 180;
Pub. L. 91–469, §§ 31, 32,
Oct. 21, 1970, 84 Stat. 1035;
restated Pub. L. 92–507, § 3,
Oct. 19, 1972, 86 Stat. 913;
Pub. L. 97–31, § 12(136),
Aug. 6, 1981, 95 Stat. 166;
§ 1104
renumbered
as
§ 1104A, Pub. L. 101–380,
title IV, § 4115(f)(1), Aug.
18, 1990, 104 Stat. 521; Pub.
L. 107–314, title XXXV,
§ 3503(2), Dec. 2, 2002, 116
Stat. 2754; Pub. L. 108–136,
title XXXV, § 3526(2), Nov.
24, 2003, 117 Stat. 1801.

53713(b) ......

46 App.:1274(f)(1)
(proviso).
46 App.:1274(f)(4).

§ 53713. Administrative fees
(a) IN GENERAL.—The Secretary or Administrator shall charge and collect from the obligor
fees the Secretary or Administrator considers
reasonable for—
(1) investigating an application for a guarantee;
(2) appraising property offered as security
for a guarantee;
(3) issuing a commitment;
(4) providing services related to an escrow
fund under section 53715 of this title; and
(5) inspecting property during construction,
reconstruction, or reconditioning.
(b) TOTAL FEE LIMITATION.—The total fees
under subsection (a) may not exceed 0.5 percent
of the original principal amount of the obligations to be guaranteed.
(c) FEES FOR INDEPENDENT ANALYSIS.—The
Secretary or Administrator may charge and collect fees to cover the costs of independent analysis under section 53708(d) of this title. Notwithstanding section 3302 of title 31, any fee collected under this subsection shall—
(1) be credited as an offsetting collection to
the account that finances the administration
of the loan guarantee program;
(2) be available for expenditure only to pay
the costs of activities and services for which
the fee is imposed; and
(3) remain available until expended.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1612;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(D), Jan. 6, 2006, 119 Stat. 3555; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(10)(B), (b),
Jan. 28, 2008, 122 Stat. 598.)

53713(c) ......

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(D). See 2006 Amendment note below.
Subsecs. (a), (c). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(D), into this section, by inserting
‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing in introductory provisions. See 2006 Amendment
note below and section 18(a) of Pub. L. 109–304, set out
as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(D), which directed
the amendment of section 1274(f) of the former Appendix to this title from which this section was derived,
was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment note for subsecs. (a), (c) and Historical and
Revision notes above.

§ 53714. Guarantee fees
(a) REGULATIONS.—Subject to this section, the
Secretary or Administrator shall prescribe regulations to assess a fee for guaranteeing an obligation under this chapter.
(b) COMPUTATION OF FEE.—
(1) IN GENERAL.—The amount of the fee for a
guarantee under this chapter shall be equal to
the sum of the amounts determined under
paragraph (2) for the years in which the guarantee is in effect.
(2) PRESENT VALUE FOR EACH YEAR.—The
amount referred to in paragraph (1) for a year
in which the guarantee is in effect is the
present value of the amount calculated under
paragraph (3). To determine the present value,
the Secretary or Administrator shall apply a
discount rate determined by the Secretary of
the Treasury, considering current market
yields on outstanding obligations of the
United States Government having periods to
maturity comparable to the period to maturity for the guaranteed obligation.

§ 53715

TITLE 46—SHIPPING

(3) CALCULATION OF AMOUNT.—The amount
referred to in paragraph (2) shall be calculated
by multiplying—
(A) the estimated average unpaid principal
amount of the obligation that will be outstanding during the year (excluding the average amount, other than interest, on deposit during the year in an escrow fund
under section 53715 of this title); by

Page 348
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

53714(a) ......

46 App.:1274(e)(1).

53714(b)
53714(c)
53714(d)
53714(e)

46
46
46
46

(B) the fee rate set under paragraph (4).
(4) SETTING FEE RATES.—To set the fee rate
referred to in paragraph (3)(B), the Secretary
or Administrator shall establish a formula
that—
(A) takes into account the security provided for the guaranteed obligation; and
(B) is a sliding scale based on the creditworthiness of the obligor, using—
(i) the lowest allowable rate under paragraph (5) for the most creditworthy obligors; and
(ii) the highest allowable rate under
paragraph (5) for the least creditworthy
obligors.
(5) PERMISSIBLE RANGE OF RATES.—The fee
rate set under paragraph (4) shall be—
(A) for a delivered vessel or equipment, at
least 0.5 percent and not more than 1 percent; and
(B) for a vessel to be constructed, reconstructed, or reconditioned or equipment to
be delivered, at least 0.25 percent and not
more than 0.5 percent.
(c) WHEN FEE COLLECTED.—A fee for the guarantee of an obligation under this chapter shall
be collected not later than the date on which an
amount is first paid on the obligation.
(d) FINANCING THE FEE.—A fee paid under this
section is eligible to be financed under this
chapter and shall be included in the actual cost
of the obligation guaranteed.
(e) NOT REFUNDABLE.—A fee paid under this
section is not refundable. However, an obligor
shall receive credit for the amount paid for the
remaining term of the obligation if the obligation is refinanced and guaranteed under this
chapter after the refinancing.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1613;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(D), Jan. 6, 2006, 119 Stat. 3555; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(10)(B), (b),
Jan. 28, 2008, 122 Stat. 598.)

......
......
......
......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1104A(e) [§ 1104A formerly § 1104], as added
June 23, 1938, ch. 600, § 46,
52 Stat. 970; Aug. 4, 1939,
ch. 417, § 14, 53 Stat. 1187;
Sept. 28, 1950, ch. 1093, § 4,
64 Stat. 1078; Aug. 15, 1953,
ch. 513, § 2, 67 Stat. 626;
Sept. 3, 1954, ch. 1265, § 4,
68 Stat. 1269; Pub. L.
86–123, §§ 1(3), 2, July 31,
1959, 73 Stat. 269, 271; Pub.
L. 86–127, § 1(3), (4), July
31, 1959, 73 Stat. 273; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 86–685,
§§ 2, 3, Sept. 2, 1960, 74
Stat. 733; Pub. L. 90–341,
June 15, 1968, 82 Stat. 180;
Pub. L. 91–469, §§ 31, 32,
Oct. 21, 1970, 84 Stat. 1035;
restated Pub. L. 92–507, § 3,
Oct. 19, 1972, 86 Stat. 913;
Pub. L. 97–31, § 12(136),
Aug. 6, 1981, 95 Stat. 166;
Pub. L. 98–595, § 1(12), Oct.
30, 1984, 98 Stat. 3131; § 1104
renumbered as § 1104A,
Pub. L. 101–380, title IV,
§ 4115(f)(1), Aug. 18, 1990,
104 Stat. 521; Pub. L.
104–239, § 13(c), Oct. 8, 1996,
110 Stat. 3136.

App.:1274(e)(2).
App.:1274(e)(3).
App.:1274(e)(5).
App.:1274(e)(4).

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(D). See 2006 Amendment note below.
Subsecs. (a), (b)(2), (4). Pub. L. 110–181, § 3522(a)(10)(B),
incorporated the substance of the amendment by Pub.
L. 109–163, § 3507(a)(1)(D), into this section by inserting
‘‘or Administrator’’ after ‘‘Secretary’’, except the second place appearing in subsec. (b)(2). See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set
out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(D), which directed
the amendment of section 1274(e) of the former Appendix to this title from which this section was derived,
was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment note for subsecs. (a), (b)(2), (4) and Historical and Revision notes above.

§ 53715. Escrow fund
(a) IN GENERAL.—If the proceeds of an obligation guaranteed under this chapter are to be
used to finance the construction, reconstruction, or reconditioning of a vessel that will serve
as security for a guarantee under this chapter,
the Secretary or Administrator may accept and
hold in escrow, under an escrow agreement with
the obligor, a portion of the proceeds of all obligations guaranteed under this chapter whose
proceeds are to be so used which is equal to—
(1) the excess of—
(A) the principal amount of all obligations
whose proceeds are to be so used; over
(B) 75 percent or 87.5 percent, whichever is
applicable under section 53709(b) of this title,
of the amount paid by or for the account of
the obligor for the construction, reconstruction, or reconditioning of the vessel; plus
(2) any interest the Secretary or Administrator may require on the amount described in
paragraph (1).
(b) SECURITY INVOLVING BOTH UNCOMPLETED
DELIVERED VESSELS.—If the security for the

AND

Page 349

§ 53715

TITLE 46—SHIPPING

guarantee of an obligation relates both to a vessel to be constructed, reconstructed, or reconditioned and to a delivered vessel, the principal
amount of the obligation shall be prorated for
purposes of subsection (a) under regulations prescribed by the Secretary or Administrator.
(c) DISBURSEMENT BEFORE TERMINATION OF
AGREEMENT.—
(1) PURPOSES.—The Secretary or Administrator shall disburse amounts in the escrow
fund, as specified in the escrow agreement,
to—
(A) pay amounts the obligor is obligated to
pay for—
(i) the construction, reconstruction, or
reconditioning of a vessel used as security
for the guarantee; and
(ii) interest on the obligations;
(B) redeem the obligations under a refinancing guaranteed under this chapter; and
(C) pay any excess interest deposits to the
obligor at times provided for in the escrow
agreement.
(2) MANNER OF PAYMENT.—If a payment becomes due under the guarantee before the termination of the escrow agreement, the
amount in the escrow fund at the time the
payment becomes due, including realized income not yet paid to the obligor, shall be paid
into the appropriate account under section
53717 of this title. The amount shall be credited against amounts due or to become due
from the obligor to the Secretary or Administrator on the guaranteed obligations or, to the
extent not so required, be paid to the obligor.
(d) PAYMENTS REQUIRED BEFORE DISBURSEMENT.—

(1) IN GENERAL.—No disbursement shall be
made under subsection (c) to any person until
the total amount paid by or for the account of
the obligor from sources other than the proceeds of the obligation equals at least 25 percent or 12.5 percent, whichever is applicable
under section 53709(b) of this title, of the aggregate actual cost of the vessel, as previously
approved by the Secretary or Administrator.
If the aggregate actual cost of the vessel has
increased since the Secretary’s or Administrator’s initial approval or if it increases after
the first disbursement is permitted under this
subsection, then no further disbursements
shall be made under subsection (c) until the
total amount paid by or for the account of the
obligor from sources other than the proceeds
of the obligation equals at least 25 percent or
12.5 percent, as applicable, of the increase, as
determined by the Secretary or Administrator, in the aggregate actual cost of the vessel. This paragraph does not require the Secretary or Administrator to consent to finance
any increase in actual cost unless the Secretary or Administrator determines that such
an increase in the obligation meets all the
terms and conditions of this chapter or other
applicable law.
(2) DOCUMENTED PROOF OF PROGRESS REQUIREMENT.—The Secretary or Administrator shall,
by regulation, establish a transparent, independent, and risk-based process for verifying
and documenting the progress of projects

under construction before disbursing guaranteed loan funds. At a minimum, the process
shall require documented proof of progress in
connection with the construction, reconstruction, or reconditioning of a vessel or vessels
before disbursements are made from the escrow fund. The Secretary or Administrator
may require that the obligor provide a certificate from an independent party certifying
that the requisite progress in construction, reconstruction, or reconditioning has taken
place.
(e) DISBURSEMENT ON
MENT.—
(1) IN GENERAL.—If

TERMINATION OF AGREE-

a payment has not become due under the guarantee before the termination of the escrow agreement, the balance
of the escrow fund at the time of termination
shall be disbursed to—
(A) prepay the excess of—
(i) the principal amount of all obligations whose proceeds are to be used to finance the construction, reconstruction, or
reconditioning of the vessel used or to be
used as security for the guarantee; over
(ii) 75 percent or 87.5 percent, whichever
is applicable under section 53709(b) of this
title, of the actual cost of the vessel to the
extent paid; and
(B) pay interest on that prepaid amount of
principal.
(2) REMAINING BALANCE.—Any remaining balance of the escrow fund shall be paid to the obligor.

(f) INVESTMENT.—The Secretary or Administrator may invest and reinvest any part of an escrow fund in obligations of the United States
Government with maturities such that the escrow fund will be available as required for purposes of the escrow agreement. Investment income shall be paid to the obligor when received.
(g) TERMS TO PROTECT GOVERNMENT.—The escrow agreement shall contain other terms the
Secretary or Administrator considers necessary
to protect fully the interests of the Government.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1614;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(H), (3), Jan. 6, 2006, 119 Stat. 3555;
Pub.
L.
110–181,
div.
C,
title
XXXV,
§ 3522(a)(10)(B), (11), (b), Jan. 28, 2008, 122 Stat.
598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53715(a) ......

46 App.:1279a(a)
(less proviso).

53715(b) ......

46 App.:1279a(a)
(proviso).
46 App.:1279a(b).
46 App.:1279a(g).
46 App.:1279a(c).
46 App.:1279a(d), (e).
46 App.:1279a(f).

53715(c) ......
53715(d) ......
53715(e) ......
53715(f) .......
53715(g) ......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1108, formerly § 1111,
as added Pub. L. 86–127,
§ 1(2), July 31, 1959, 73
Stat.
272;
renumbered
Pub. L. 92–507, § 5, Oct. 19,
1972, 86 Stat. 916; Pub. L.
97–31, § 12(136), Aug. 6, 1981,
95 Stat. 166; Pub. L.
108–136,
title
XXXV,
§ 3521(a), Nov. 24, 2003, 117
Stat. 1799.

§ 53716

TITLE 46—SHIPPING
AMENDMENTS

2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(H), (3). See 2006 Amendment note
below.
Pub. L. 110–181, § 3522(a)(10)(B), (11), incorporated the
substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(H), (3), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing and
‘‘or Administrator’s’’ after ‘‘Secretary’s’’ in subsec.
(d)(1). See 2006 Amendment note below and section 18(a)
of Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(H), (3), which directed the amendment of section 1279a of the former
Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment notes and Historical and Revision notes
above.

§ 53716. Deposit fund
(a) IN GENERAL.—There is a deposit fund in the
Treasury for purposes of this section. The Secretary or Administrator, in accordance with an
agreement under subsection (b), may deposit
into and hold in the fund cash belonging to an
obligor to serve as collateral for a guarantee
made under this chapter with respect to the obligor.
(b) AGREEMENT.—The Secretary or Administrator and an obligor shall make a reserve fund
or other collateral account agreement to govern
the deposit, withdrawal, retention, use, and reinvestment of cash of the obligor held in the
fund. The agreement shall contain—
(1) terms and conditions required by this
section;
(2) terms that grant to the United States
Government a security interest in all amounts
deposited into the fund; and
(3) any additional terms considered by the
Secretary or Administrator to be necessary to
protect fully the interests of the Government.
(c) INVESTMENT.—The Secretary or Administrator may invest and reinvest any part of the
amounts in the fund in obligations of the Government with maturities such that amounts in
the fund will be available as required for purposes of the agreement under subsection (b).
Cash balances in the fund in excess of current
requirements shall be maintained in a form of
uninvested funds, and the Secretary of the
Treasury shall pay interest on these funds.
(d) WITHDRAWALS.—
(1) IN GENERAL.—Cash deposited into the
fund may not be withdrawn without the consent of the Secretary or Administrator.
(2) USE OF INCOME.—Subject to paragraph (3),
the Secretary or Administrator may pay any
income earned on cash of an obligor deposited
into the fund in accordance with the agreement with the obligor under subsection (b).
(3) RETENTION AGAINST DEFAULT.—The Secretary or Administrator may retain and offset
any or all of the cash of an obligor in the fund,
and any income realized thereon, as part of
the Secretary’s or Administrator’s recovery
against the obligor in case of a default by the
obligor on an obligation.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1616;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(H), (3), Jan. 6, 2006, 119 Stat. 3555;

Page 350

Pub.
L.
110–181,
div.
C,
title
XXXV,
§ 3522(a)(10)(B), (11), (b), Jan. 28, 2008, 122 Stat.
598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53716 ..........

Source (U.S. Code)
46 App.:1279b.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1109, as added Pub. L.
107–107, title XXXV, § 3503,
Dec. 28, 2001, 115 Stat.
1392.

In subsection (a), the word ‘‘established’’ is omitted
for consistency with other codified titles of the United
States Code.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(H), (3). See 2006 Amendment note
below.
Pub. L. 110–181, § 3522(a)(10)(B), (11), incorporated the
substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(H), (3), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing, except the second place appearing in subsec. (c), and inserting ‘‘or Administrator’s’’ after ‘‘Secretary’s’’ in
subsec. (d)(3). See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.
2006—Pub. L. 109–163, § 3507(a)(1)(H), (3), which directed the amendment of section 1279b of the former
Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment notes and Historical and Revision notes
above.

§ 53717. Management of funds in the Treasury
(a) DEFINITION.—In this section, the term
‘‘FCRA’’ means the Federal Credit Reform Act
of 1990 (2 U.S.C. 661 et seq.).
(b) LOAN GUARANTEES BY ADMINISTRATOR.—
(1) WHEN NOT SUBJECT TO FCRA.—The Administrator shall account for payments and disbursements involving obligations guaranteed
under this chapter and not subject to FCRA in
an account in the Treasury entitled the Federal Ship Financing Fund Liquidating Account (a liquidating account as defined in
FCRA).
(2) WHEN SUBJECT TO FCRA.—The Administrator shall account for payments and disbursements involving obligations guaranteed
under this chapter and subject to FCRA in a
separate account in the Treasury entitled the
Federal Ship Financing Guaranteed Loan Financing Account (a financing account as defined in FCRA).
(c) LOAN GUARANTEES BY SECRETARY.—
(1) WHEN NOT SUBJECT TO FCRA.—The Secretary shall account for payments and disbursements involving obligations guaranteed
under this chapter and not subject to FCRA in
a separate account in the Treasury established
for this purpose.
(2) WHEN SUBJECT TO FCRA.—The Secretary
shall account for payments and disbursements
involving obligations guaranteed under this
chapter and subject to FCRA in a separate account in the Treasury established for this purpose.
(d) DIRECT LOANS BY SECRETARY.—The Secretary shall account for payments and disburse-

Page 351

ments involving direct loans made under this
chapter in a separate account in the Treasury
established for this purpose.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1616;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(B), (D), (c)(2), Jan. 6, 2006, 119 Stat.
3555, 3556; Pub. L. 110–181, div. C, title XXXV,
§ 3522(a)(7), (9)(B), (b), Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53717 ..........

§ 53721

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1272.

46 App.:1274(g).

46 App.:1280.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1102, as added June
23, 1938, ch. 600, § 46, 52
Stat. 969; Sept. 3, 1954, ch.
1265, § 2, 68 Stat. 1268; Pub.
L. 86–123, § 1(2), July 31,
1959, 73 Stat. 269; Pub. L.
92–507, § 2, Oct. 19, 1972, 86
Stat. 910; Pub. L. 97–31,
§ 12(136), Aug. 6, 1981, 95
Stat. 166.
June 29, 1936, ch. 858, title
XI, § 1104A(g) [§ 1104A formerly § 1104], as added
June 23, 1938, ch. 600, § 46,
52 Stat. 970; Aug. 4, 1939,
ch. 417, § 14, 53 Stat. 1187;
Sept. 28, 1950, ch. 1093, § 4,
64 Stat. 1078; Aug. 15, 1953,
ch. 513, § 2, 67 Stat. 626;
Sept. 3, 1954, ch. 1265, § 4,
68 Stat. 1269; Pub. L.
86–123, §§ 1(3), 2, July 31,
1959, 73 Stat. 269, 271; Pub.
L. 86–127, § 1(3), (4), July
31, 1959, 73 Stat. 273; Pub.
L. 86–518, § 1, June 12, 1960,
74 Stat. 216; Pub. L. 86–685,
§§ 2, 3, Sept. 2, 1960, 74
Stat. 733; Pub. L. 90–341,
June 15, 1968, 82 Stat. 180;
Pub. L. 91–469, §§ 31, 32,
Oct. 21, 1970, 84 Stat. 1035;
restated Pub. L. 92–507, § 3,
Oct. 19, 1972, 86 Stat. 914;
Pub. L. 96–561, title II,
§ 220(3)(D), Dec. 22, 1980, 94
Stat. 3294; Pub. L. 97–31,
§ 12(136), Aug. 6, 1981, 95
Stat. 166; Pub. L. 97–35,
title XVI, § 1606(d), Aug.
13, 1981, 95 Stat. 752; § 1104
renumbered as § 1104A,
Pub. L. 101–380, title IV,
§ 4115(f)(1), Aug. 18, 1990,
104 Stat. 521.
Pub. L. 85–469, title I, § 101
(par. under heading ‘‘Federal Ship Mortgage Insurance Fund’’), June 25,
1958, 72 Stat. 231; Pub. L.
97–31, § 12(137), Aug. 6, 1981,
95 Stat. 166.

The Federal Ship Financing Fund which had been
created by 46 App. U.S.C. 1272 is obsolete as a result of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et
seq.). This section codifies the current requirements
and practices for the management of funds under this
chapter, based on the requirements of that Act.
REFERENCES IN TEXT
The Federal Credit Reform Act of 1990, referred to in
subsec. (a), is title V of Pub. L. 93–344, as added by Pub.
L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat.
1388–609, which is classified generally to subchapter III
(§ 661 et seq.) of chapter 17A of Title 2, The Congress.
For complete classification of this Act to the Code, see
Short Title note set out under section 621 of Title 2 and
Tables.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(B), (D), (c)(2). See 2006 Amendment
note below.
Subsec. (b). Pub. L. 110–181, § 3522(a)(9)(B), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(1)(B), (D), (c)(2), into this section by

substituting ‘‘Administrator’’ for ‘‘Secretary of Transportation’’ wherever appearing in heading and text. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
Subsecs. (c), (d). Pub. L. 110–181, § 3522(a)(7), struck
out ‘‘of Commerce’’ after ‘‘Secretary’’ wherever appearing in headings and text.
2006—Pub. L. 109–163, § 3507(a)(1)(B), (D), (c)(2), which
directed the amendment of sections 1272, 1274(g), and
1280 of the former Appendix to this title from which
this section was derived, was repealed by Pub. L.
110–181, § 3522(b). See 2008 Amendment note for subsec.
(b) and Historical and Revision notes above.

§ 53718. Annual report to Congress
The Administrator shall report to Congress
annually on the loan guarantee program under
this chapter. Each report shall include—
(1) the size, in dollars, of the portfolio of
loans guaranteed;
(2) the size, in dollars, of projects in the
portfolio facing financial difficulties;
(3) the number and type of projects covered;
(4) a profile of pending loan applications;
(5) the amount of appropriations available
for new guarantees;
(6) a profile of each project approved since
the last report; and
(7) a profile of any defaults since the last report.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1617;
Pub. L. 109–163, div. C, title XXXV, § 3507(c)(3),
Jan. 6, 2006, 119 Stat. 3556; Pub. L. 110–181, div. C,
title XXXV, § 3522(a)(9)(C), (b), Jan. 28, 2008, 122
Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53718 ..........

Source (U.S. Code)
46 App.:1280b.

Source (Statutes at Large)
Pub. L. 108–136, title XXXV,
§ 3527, Nov. 24, 2003, 117
Stat. 1802.

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(c)(3). See 2006 Amendment note below.
Pub. L. 110–181, § 3522(a)(9)(C), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(c)(3),
into this section by substituting ‘‘Administrator’’ for
‘‘Secretary of Transportation’’ in introductory provisions. See 2006 Amendment note below and section 18(a)
of Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(c)(3), which directed the
amendment of section 1280b of the former Appendix to
this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment
notes and Historical and Revision notes above.

SUBCHAPTER II—DEFAULT PROVISIONS
§ 53721. Rights of obligee
(a) DEMANDS BY OBLIGEES.—Except as provided
in subsection (c), if an obligor has continued in
default for 30 days in the payment of principal
or interest on an obligation guaranteed under
this chapter, the obligee or the obligee’s agent
may demand that the Secretary or Administrator pay the unpaid principal amount of the
obligation and the unpaid interest on the obligation to the date of payment. The demand must
be made within the earlier of—

§ 53722

TITLE 46—SHIPPING

(1) a period that may be specified in the
guarantee or a related agreement; or
(2) 90 days from the date of the default.
(b) PAYMENTS BY SECRETARY
TRATOR.—
(1) IN GENERAL.—If a demand

OR

ADMINIS-

is made under
subsection (a), the Secretary or Administrator
shall pay to the obligee or the obligee’s agent
the unpaid principal amount of the obligation
and the unpaid interest on the obligation to
the date of payment. Payment shall be made
within the earlier of—
(A) a period that may be specified in the
guarantee or a related agreement; or
(B) 30 days from the date of the demand.

(2) IF NO EXISTING DEFAULT.—The Secretary
or Administrator is not required to make payment under this subsection if, within the appropriate period under paragraph (1), the Secretary or Administrator finds that the obligor
was not in default or that the default was remedied before the demand.
(c) ASSUMPTION OF RIGHTS AND OBLIGATIONS
BEFORE DEMAND.—An obligee or the obligee’s
agent may not demand payment under this section if the Secretary or Administrator, before
the demand and on terms that may be provided
in the obligation or a related agreement, has assumed the obligor’s rights and duties under the
obligation and any related agreement and made
any payment in default. However, the guarantee
of the obligation remains in effect after the Secretary’s or Administrator’s assumption.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1617;
Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C),
(F), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181,
div. C, title XXXV, § 3522(a)(10)(B), (11), (b), Jan.
28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

53721(a) ......

46 App.:1275(a) (1st
sentence less parenthetical).

June 29, 1936, ch. 858, title
XI, § 1105(a), as added June
23, 1938, ch. 600, § 46, 52
Stat. 971; Aug. 15, 1953, ch.
513, § 3, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 5, 68
Stat. 1272; Aug. 7, 1956, ch.
1026, § 1(e)–(g), 70 Stat.
1087; Pub. L. 85–520, July
15, 1958, 72 Stat. 358; Pub.
L. 91–469, § 33, Oct. 21, 1970,
84 Stat. 1035; restated
Pub. L. 92–507, § 3, Oct. 19,
1972, 86 Stat. 914; Pub. L.
97–31, § 12(136), Aug. 6, 1981,
95 Stat. 166; Pub. L. 98–595,
§ 1(8), Oct. 30, 1984, 98 Stat.
3131.

53721(b)(1) ..
53721(b)(2) ..
53721(c) ......

46 App.:1275(a) (last
sentence less proviso).
46 App.:1275(a) (last
sentence proviso).
46 App.:1273(e) (last
sentence).

June 29, 1936, ch. 858, title
XI, § 1103(e) (last sentence), as added Pub. L.
98–595, § 1(1), Oct. 30, 1984,
98 Stat. 3130.

46 App.:1275(a) (1st
sentence parenthetical).

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(C), (F). See 2006 Amendment note
below.
Pub. L. 110–181, § 3522(a)(10)(B), (11), incorporated the
substance of the amendment by Pub. L. 109–163,

Page 352

§ 3507(a)(1)(C), (F), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing and
‘‘or Administrator’s’’ after ‘‘Secretary’s’’ in subsec. (c).
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(C), (F), which directed the amendment of sections 1273(e) and 1275(a) of
the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181,
§ 3522(b). See 2008 Amendment notes and Historical and
Revision notes above.

§ 53722. Actions by Secretary or Administrator
(a) GENERAL AUTHORITY.—On default under an
obligation or related agreement between the
Secretary or Administrator and the obligor, the
Secretary or Administrator, on terms that may
be provided in the obligation or agreement,
may—
(1) assume the obligor’s rights and duties
under the obligation or agreement, make any
payment in default, and notify the obligee or
the obligee’s agent of the default and the Secretary’s or Administrator’s assumption; or
(2) notify the obligee or the obligee’s agent
of the default.
(b) DEMANDS BY OBLIGEES.—
(1) DEMAND.—If the Secretary or Administrator proceeds under subsection (a)(2), the obligee or the obligee’s agent may demand that
the Secretary or Administrator pay the unpaid
principal amount of the obligation and the unpaid interest on the obligation. The demand
must be made within the earlier of—
(A) a period that may be specified in the
guarantee or a related agreement; or
(B) 60 days from the date of the Secretary’s or Administrator’s notice.
(2) PAYMENT.—If a demand is made under
paragraph (1), the Secretary or Administrator
shall pay to the obligee or the obligee’s agent
the unpaid principal amount of the obligation
and the unpaid interest on the obligation to
the date of payment. Payment shall be made
within the earlier of—
(A) a period that may be specified in the
guarantee or a related agreement; or
(B) 30 days from the date of the demand.
(c) CONTINUED EFFECT OF GUARANTEE.—A guarantee of an obligation remains in effect after an
assumption of the obligation by the Secretary
or Administrator.
(d) ADDITIONAL RESPONSES.—If there is a default on an obligation, the Secretary or Administrator shall conduct operations under this
chapter in a manner that—
(1) maximizes the net present value return
from the sale or disposition of assets associated with the obligation, including prompt referral to the Attorney General for collection
as appropriate;
(2) minimizes the amount of any loss realized in the resolution of the guarantee;
(3) ensures adequate competition and fair
and consistent treatment of offerors; and
(4) requires appraisal of assets by an independent appraiser.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1618;
Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C),

Page 353

(F), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181,
div. C, title XXXV, § 3522(a)(10)(B), (11), (b), Jan.
28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section

§ 53723

TITLE 46—SHIPPING

Source (U.S. Code)

53722(a), (b)

46 App.:1275(b).

53722(c) ......

46 App.:1273(e) (last
sentence).

53722(d) ......

46 App.:1275(f).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1105(b), as added June
23, 1938, ch. 600, § 46, 52
Stat. 971; Aug. 15, 1953, ch.
513, § 3, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 5, 68
Stat. 1272; Aug. 7, 1956, ch.
1026, § 1(e)–(g), 70 Stat.
1087; Pub. L. 85–520, July
15, 1958, 72 Stat. 358; Pub.
L. 91–469, § 33, Oct. 21, 1970,
84 Stat. 1035; restated
Pub. L. 92–507, § 3, Oct. 19,
1972, 86 Stat. 914; Pub. L.
97–31, § 12(136), Aug. 6, 1981,
95 Stat. 166; Pub. L. 98–595,
§ 1(9), Oct. 30, 1984, 98 Stat.
3131.
June 29, 1936, ch. 858, title
XI, § 1103(e) (last sentence), as added Pub. L.
98–595, § 1(1), Oct. 30, 1984,
98 Stat. 3130.
June 29, 1936, ch. 858, title
XI, § 1105(f), as added Pub.
L. 108–136, title XXXV,
§ 3524, Nov. 24, 2003, 117
Stat. 1801.

In subsection (a), before paragraph (1), the words ‘‘an
obligation or related agreement’’ are substituted for ‘‘a
mortgage, loan agreement, or other security agreement’’ for consistency in the revised chapter.

the current average market yield on outstanding marketable obligations of the United States
Government of comparable maturities during
the month before the obligations are issued.
(c) PURCHASE OF OBLIGATIONS.—The Secretary
of the Treasury shall purchase the obligations
issued under this section. To purchase the obligations, the Secretary of the Treasury may use
as a public debt transaction the proceeds from
the sale of securities issued under chapter 31 of
title 31. The purposes for which securities may
be issued under that chapter are extended to include the purchase of obligations under this subsection. The Secretary of the Treasury may sell
obligations purchased under this section. A redemption, purchase, or sale of the obligations by
the Secretary of the Treasury is a public debt
transaction of the Government.
(d) DEPOSITS AND REDEMPTIONS.—The Secretary or Administrator shall deposit amounts
borrowed under this section in the appropriate
account under section 53717 of this title and
make redemptions of the obligations from that
account.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1618;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(G), Jan. 6, 2006, 119 Stat. 3555; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(10)(B), (b),
Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(C), (F). See 2006 Amendment note
below.
Pub. L. 110–181, 3522(a)(10)(B), (11), incorporated the
substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(C), (F), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ in section catchline
and wherever appearing in subsecs. (a) to (c) and ‘‘or
Administrator’s’’ after ‘‘Secretary’s’’ in subsecs. (a)(1)
and (b)(1)(B). See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.
Subsec. (d). Pub. L. 110–181, § 3522(a)(10)(B), inserted
‘‘or Administrator’’ after ‘‘Secretary’’ in introductory
provisions.
2006—Pub. L. 109–163, § 3507(a)(1)(C), (F), which directed the amendment of sections 1273(e) and 1275(b) of
the former Appendix to this title from which this section was derived in part, was repealed by Pub. L.
110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above.

§ 53723. Payments by Secretary or Administrator
and issuance of obligations
(a) CASH PAYMENT.—Amounts required to be
paid by the Secretary or Administrator under
section 53721 or 53722 of this title shall be paid in
cash.
(b) ISSUANCE OF OBLIGATIONS.—If amounts in
the appropriate account under section 53717 of
this title are not sufficient to make a payment
required under section 53721 or 53722 of this title,
the Secretary or Administrator may issue obligations to the Secretary of the Treasury. The
Secretary or Administrator, with the approval
of the Secretary of the Treasury, shall prescribe
the form, denomination, maturity, and other
terms (except the interest rate) of the obligations. The Secretary of the Treasury shall set
the interest rate for the obligations, considering

Revised
Section
53723 ..........

Source (U.S. Code)
46 App.:1275(d).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1105(d), as added June
23, 1938, ch. 600, § 46, 52
Stat. 972; Aug. 15, 1953, ch.
513, § 3, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 5, 68
Stat. 1272; Aug. 7, 1956, ch.
1026, § 1(e)–(g), 70 Stat.
1087; Pub. L. 85–520, July
15, 1958, 72 Stat. 358; Pub.
L. 91–469, § 33, Oct. 21, 1970,
84 Stat. 1035; restated
Pub. L. 92–507, § 3, Oct. 19,
1972, 86 Stat. 914; Pub. L.
96–561, title II, § 220(4),
Dec. 22, 1980, 94 Stat. 3294;
Pub. L. 97–31, § 12(136),
Aug. 6, 1981, 95 Stat. 166;
Pub. L. 97–35, title XVI,
§ 1606(e), Aug. 13, 1981, 95
Stat. 752.

In subsections (b) and (d), the words ‘‘appropriate account under section 53717 of this title’’ are substituted
for ‘‘Federal Ship Financing Fund’’ because the accounts under section 53717 replace the Federal Ship Financing Fund. See the explanation for section 53717.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(G). See 2006 Amendment note below.
Subsecs. (a), (b), (d). Pub. L. 110–181, § 3522(a)(10)(B),
incorporated the substance of the amendment by Pub.
L. 109–163, § 3507(a)(1)(G), into this section by inserting
‘‘or Administrator’’ after ‘‘Secretary’’ in section catchline and wherever appearing in text, except when followed by ‘‘of the Treasury’’. See 2006 Amendment note
below and section 18(a) of Pub. L. 109–304, set out as a
Legislative Purpose and Construction note preceding
section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(G), which directed
the amendment of section 1275(d) of the former Appendix to this title from which this section was derived,
was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment note for subsecs. (a), (b), (d) and Historical
and Revision notes above.

§ 53724

TITLE 46—SHIPPING

§ 53724. Rights to secured property
(a) ACQUISITION OF SECURITY RIGHTS.—When
the Secretary or Administrator makes a payment on, or assumes, an obligation under section 53721 or 53722 of this title, the Secretary or
Administrator acquires the rights under the security agreement with the obligor in the security held by the Secretary or Administrator to
guarantee the obligation.
(b) USE AND DISPOSITION OF SECURED PROPERTY.—Notwithstanding any other law relating
to the acquisition, handling, or disposal of property by the United States Government, the Secretary or Administrator has the right, in the
Secretary’s or Administrator’s discretion, to
complete, reconstruct, recondition, renovate, repair, maintain, operate, charter, or sell any
property acquired under a security agreement
with an obligor, or to place a vessel so acquired
in the National Defense Reserve Fleet. The
terms of a sale under this subsection shall be as
approved by the Secretary or Administrator.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1619;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(F), Jan. 6, 2006, 119 Stat. 3555; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(10)(B), (11),
(b), Jan. 28, 2008, 122 Stat. 598.)

obligee. The obligee shall make available to the
Government all records and evidence necessary
to prosecute the action.
(b) TITLE, POSSESSION, AND PURCHASE.—
(1) IN GENERAL.—The Secretary or Administrator may—
(A) accept a conveyance of title to and
possession of property from the obligor or
another party liable to the Secretary or Administrator; and
(B) purchase the property for an amount
not greater than the unpaid principal
amount of the obligation and interest thereon.
(2) PAYMENT OF EXCESS.—If, through the sale
of property, the Secretary or Administrator
receives an amount of cash greater than the
unpaid principal amount of the obligation, the
unpaid interest on the obligation, and the expenses of collecting those amounts, the Secretary or Administrator shall pay the excess
to the obligor.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1619;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(F), Jan. 6, 2006, 119 Stat. 3555; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(10)(B), (b),
Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

Revised
Section
53725 ..........

53724 ..........

46 App.:1275(c).

June 29, 1936, ch. 858, title
XI, § 1105(c), as added June
23, 1938, ch. 600, § 46, 52
Stat. 971; Aug. 15, 1953, ch.
513, § 3, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 5, 68
Stat. 1272; Aug. 7, 1956, ch.
1026, § 1(e)–(g), 70 Stat.
1087; Pub. L. 85–520, July
15, 1958, 72 Stat. 358; Pub.
L. 91–469, § 33, Oct. 21, 1970,
84 Stat. 1035; restated
Pub. L. 92–507, § 3, Oct. 19,
1972, 86 Stat. 914; Pub. L.
97–31, § 12(136), Aug. 6, 1981,
95 Stat. 166; Pub. L. 98–595,
§ 1(10), Oct. 30, 1984, 98
Stat. 3131.

AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(F). See 2006 Amendment note below.
Pub. L. 110–181, § 3522(a)(10)(B), (11), incorporated the
substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(F), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing and, in
subsec. (b), ‘‘or Administrator’s’’ after ‘‘Secretary’s’’.
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(F), which directed
the amendment of section 1275(c) of the former Appendix to this title from which this section was derived,
was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment notes and Historical and Revision notes
above.

§ 53725. Actions against obligor
(a) IN GENERAL.—For a default under a guaranteed obligation or related agreement, the Secretary or Administrator may take any action
against the obligor or another liable party that
the Secretary or Administrator considers necessary to protect the interests of the United
States Government. A civil action may be
brought in the name of the United States or the

Page 354

Source (U.S. Code)
46 App.:1275(e).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1105(e), as added June
23, 1938, ch. 600, § 46, 52
Stat. 971; Aug. 15, 1953, ch.
513, § 3, 67 Stat. 626; Sept.
3, 1954, ch. 1265, § 5, 68
Stat. 1272; Aug. 7, 1956, ch.
1026, § 1(e)–(g), 70 Stat.
1087; Pub. L. 85–520, July
15, 1958, 72 Stat. 358; Pub.
L. 91–469, § 33, Oct. 21, 1970,
84 Stat. 1035; restated
Pub. L. 92–507, § 3, Oct. 19,
1972, 86 Stat. 915; Pub. L.
97–31, § 12(136), Aug. 6, 1981,
95 Stat. 166; Pub. L. 98–595,
§ 1(11), Oct. 30, 1984, 98
Stat. 3131.

In subsection (a), the words ‘‘may take any action’’
are substituted for ‘‘shall take such action . . . that, in
his discretion, may be required’’ for clarity and to
eliminate unnecessary words.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(F). See 2006 Amendment note below.
Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(F), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(F), which directed
the amendment of section 1275(e) of the former Appendix to this title from which this section was derived,
was repealed by Pub. L. 110–181, § 3522(b). See 2008
Amendment notes and Historical and Revision notes
above.

SUBCHAPTER III—PARTICULAR PROJECTS
§ 53731. Commercial demonstration ocean thermal energy conversion facilities and plantships
(a) IN GENERAL.—Under subchapter I of this
chapter, the Administrator may guarantee or

Page 355

§ 53731

TITLE 46—SHIPPING

make a commitment to guarantee the payment
of the principal of and interest on an obligation
that aids in financing (including reimbursement
of an obligor for expenditures previously made
for) the construction, reconstruction, or reconditioning of a commercial demonstration ocean
thermal energy conversion facility or plantship.
This section may be used to guarantee obligations for a total of not more than 5 separate facilities and plantships or a demonstrated 400
megawatt capacity, whichever comes first.
(b) APPLICABILITY OF OTHER PROVISIONS.—Except as otherwise provided in this section, a
guarantee or commitment to guarantee under
this section is subject to all the provisions applicable to a guarantee or commitment to guarantee under subchapter I of this chapter.
(c) ECONOMIC SOUNDNESS.—The required determination of economic soundness under section
53708 of this title applies to a guarantee or commitment to guarantee for that portion of a facility or plantship not to be supported with appropriated Federal funds.
(d) REASONABLENESS OF RISK.—A guarantee or
commitment to guarantee may not be made
under this section unless the Secretary of Energy, in consultation with the Administrator,
certifies to the Administrator that, for the facility or plantship for which the guarantee or commitment to guarantee is sought, there is sufficient guarantee of performance and payment to
lower the risk to the United States Government
to a reasonable level. In deciding whether to
issue such a certification, the Secretary of Energy shall consider—
(1) the successful demonstration of the technology to be used in the facility at a scale sufficient to establish the likelihood of technical
and economic viability in the proposed market; and
(2) the need of the United States to develop
new and renewable sources of energy and the
benefits to be realized from the construction
and successful operation of the facility or
plantship.
(e) AMOUNT OF OBLIGATION.—The total principal amount of an obligation guaranteed under
this section may not exceed 87.5 percent of—
(1) the actual cost or depreciated actual cost
of the facility or plantship; or
(2) if the facility or plantship is supported
with appropriated Federal funds, the total
principal amount of that portion of the actual
cost or depreciated actual cost for which the
obligor is obligated to secure financing under
the agreement between the obligor and the Department of Energy or other Federal agency.
(f) OTEC DEMONSTRATION FUND.—
(1) IN GENERAL.—There is a special subaccount, known as the OTEC Demonstration
Fund, in the account established under section
53717(b)(1) of this title.
(2) USE AND OPERATION.—The OTEC Demonstration Fund shall be used for obligation
guarantees authorized under this section that
do not qualify under subchapter I of this chapter. Except as otherwise provided in this section, the OTEC Demonstration Fund shall be
operated in the same manner as the parent account. However—

(A) amounts received by the Administrator under subchapter I of this chapter related to guarantees or commitments to
guarantee made under this section shall be
deposited only in the OTEC Demonstration
Fund; and
(B) when obligations issued by the Administrator under section 53723 of this title related to the OTEC Demonstration Fund are
outstanding, any amount received by the
Administrator under subchapter I of this
chapter related to ocean thermal energy
conversion facilities or plantships shall be
deposited in the OTEC Demonstration Fund.
(3) TRANSFERS.—Assets in the OTEC Demonstration Fund may be transferred to the
parent account when and to the extent the
balance in the OTEC Demonstration Fund exceeds the total guarantees or commitments to
guarantee made under this section then outstanding, plus obligations issued by the Administrator under section 53723 of this title related to the OTEC Demonstration Fund.
(4) LIABILITY.—The parent account is not liable for a guarantee or commitment to guarantee made under this section.
(5) MAXIMUM UNPAID PRINCIPAL AMOUNT.—The
total unpaid principal amount of the obligations guaranteed with the backing of the
OTEC Demonstration Fund and outstanding at
any one time may not exceed $1,650,000,000.
(g) ISSUANCE AND PAYMENT OF OBLIGATIONS.—
Section 53723 of this title applies to the OTEC
Demonstration Fund. However, obligations issued by the Administrator under that section related to the OTEC Demonstration Fund shall be
payable only from proceeds realized by the
OTEC Demonstration Fund.
(h) TAXATION OF INTEREST.—Interest on an obligation guaranteed under this section shall be
included in gross income under chapter 1 of the
Internal Revenue Code of 1986 (26 U.S.C. ch. 1).
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1620;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(2)(H), Jan. 6, 2006, 119 Stat. 3555; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(9)(D), (b),
Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

53731(a) ......

46 App.:1279c(a) (1st
sentence), (1), (4).

June 29, 1936, ch. 858, title
XI, § 1110, as added Pub. L.
96–320, title II, § 203(a),
Aug. 3, 1980, 94 Stat. 992;
Pub. L. 97–31, § 12(136),
Aug. 6, 1981, 95 Stat. 166;
Pub. L. 97–35, title XVI,
§ 1606(f), Aug. 13, 1981, 95
Stat. 752; Pub. L. 99–514,
§ 2, Oct. 22, 1986, 100 Stat.
2095; Pub. L. 104–239,
§ 11(3), Oct. 8, 1996, 110
Stat. 3134.

53731(b) ......

46 App.:1279c(a) (2d
sentence words
before (1)).
46 App.:1279c(a)(2).
46 App.:1279c(b).
46 App.:1279c(a)(3).
46 App.:1279c(c).
46 App.:1279c(d).
46 App.:1279c(e).

53731(c) ......
53731(d) ......
53731(e) ......
53731(f) .......
53731(g) ......
53731(h) ......

In subsection (a), the words ‘‘upon such terms as he
shall prescribe’’ are omitted as unnecessary because
section 53702(a) of the revised title provides the Sec-

§ 53732

TITLE 46—SHIPPING

retary authority to prescribe the terms. The text of 46
App. U.S.C. 1279c(a)(1) is omitted as obsolete.
In subsection (f)(1), the words ‘‘account established
under section 53717(b)(1) of this title’’ are substituted
for ‘‘Federal Ship Financing Fund’’ because the accounts under section 53717 replace the Federal Ship Financing Fund. See the explanation for section 53717.
In subsection (f)(2)(B), the word ‘‘conversion’’ is substituted for ‘‘conversional’’ to correct an apparent
error.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(2)(H). See 2006 Amendment note below.
Pub. L. 110–181, § 3522(a)(9)(D), incorporated the substance of the amendment by Pub. L. 109–163,
§ 3507(a)(2)(H), into this section by substituting ‘‘Administrator’’ for ‘‘Secretary’’ wherever appearing, except when followed by ‘‘of Energy’’. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set
out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(2)(H), which directed
the amendment of section 1279c of the former Appendix
to this title from which this section was derived, was
repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above.

§ 53732. Eligible export vessels
(a) APPLICABLE TERMS.—The Administrator
may guarantee an obligation for an eligible export vessel in accordance with—
(1) the terms applicable under this chapter
for vessels documented under the laws of the
United States; or
(2) other terms the Administrator determines are more favorable than those terms
and compatible with export credit terms offered by foreign governments for the sale of
vessels built in foreign shipyards.
(b) INTERAGENCY COUNCIL.—
(1) ESTABLISHMENT.—There is an interagency
council to carry out this section.
(2) COMPOSITION.—The council is composed of
the following individuals or their designees:
(A) The Administrator, who is the chairman of the council.
(B) The Secretary of the Treasury.
(C) The Secretary of State.
(D) The Assistant to the President for Economic Policy.
(E) The United States Trade Representative.
(F) The President and Chairman of the Export-Import Bank of the United States.
(3) FUNCTIONS.—The council shall—
(A) obtain information on shipbuilding
loan guarantees, direct and indirect subsidies, and other favorable treatment of
shipyards provided by foreign governments
to shipyards in competition with United
States shipyards;
(B) consult regularly with United States
shipbuilders to obtain the essential information about international shipbuilding competition on which to set terms for loan guarantees under subsection (a)(2); and
(C) provide guidance to the Administrator
in establishing terms for loan guarantees
under subsection (a)(2).
(4) ANNUAL REPORT.—Not later than January
31 of each year, the Administrator shall sub-

Page 356

mit to Congress a report on activities of the
Administrator under this section during the
preceding year. The report shall include—
(A) documentation of sources of information about assistance by governments of
other countries to shipyards in those countries; and
(B) a summary of recommendations made
to the Administrator during the preceding
year about applications submitted to the
Administrator during that year for loan
guarantees to construct eligible export vessels.
(c) REQUIRED FINDINGS.—
(1) BENEFIT TO SHIPBUILDING INDUSTRY.—The
Administrator may not guarantee or make a
commitment to guarantee an obligation for an
eligible export vessel unless the Administrator
finds that the construction, reconstruction, or
reconditioning of the vessel will aid in the
transition of United States shipyards to commercial activities or will preserve shipbuilding
assets that would be essential in time of war
or national emergency.
(2) PRIORITY OF DOCUMENTED VESSELS.—The
Administrator may not make a commitment
to guarantee an obligation for an eligible export vessel unless the Administrator determines that making the commitment will not
result in denial of an economically sound application for a commitment to guarantee an
obligation for a vessel documented under the
laws of the United States and operating in the
domestic or foreign commerce of the United
States. The Administrator has sole discretion
in making the determination. In making the
determination, the Administrator shall consider—
(A) the status and economic soundness of
pending applications for commitments to
guarantee obligations for vessels documented under the laws of the United States
that are operating or will be operating in the
domestic or foreign commerce of the United
States; and
(B) the amount of guarantee authority
available.
(d) RESTRICTION ON TRANSFER OF VESSEL.—The
Administrator may not guarantee or make a
commitment to guarantee an obligation for an
eligible export vessel unless the owner of the
vessel agrees with the Administrator that the
vessel will not be transferred to a country designated by the Secretary of Defense as a country
whose interests are hostile to the interests of
the United States.
(e) REVIEW BY SECRETARY OF DEFENSE.—
(1) NOTIFICATION.—The Administrator shall
promptly notify the Secretary of Defense of
the receipt of an application for a loan guarantee for an eligible export vessel.
(2) DISAPPROVAL.—The Secretary of Defense,
within 30 days after receiving the notice, may
disapprove the guarantee based on an assessment of the potential use of the vessel in a
manner that may harm the national security
interests of the United States. The Secretary
of Defense may not disapprove a guarantee
solely because of the type of vessel to be constructed.

Page 357

TITLE 46—SHIPPING

§ 53733

(3) DELEGATION.—The authority of the Secretary of Defense to disapprove a guarantee
under this subsection may be delegated only
to a civilian officer of the Department of Defense appointed by the President by and with
the advice and consent of the Senate.
(4) PROHIBITION.—The Administrator may
not make a loan guarantee disapproved by the
Secretary of Defense under this subsection.

section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.
2006—Pub. L. 109–163, § 3507(a)(1)(C), (D), (2)(E), (F), (I),
(J), (b)(3)(A), (5), (8), which directed the amendment of
sections 1273(g), 1274(d)(1)(A), (3), (j)(1), (2), and 1279d(a),
(b)(1), (2), (4) of the former Appendix to this title from
which this section was derived in part, was repealed by
Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and
Historical and Revision notes above.

(f) EXPIRATION OF AUTHORITY.—The Administrator may not issue a commitment to guarantee an obligation for an eligible export vessel
under this chapter after the last date on which
such a commitment may be issued under any
treaty or convention entered into after November 30, 1993, that prohibits guarantee of such an
obligation.

§ 53733. Shipyard modernization and improvement

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1621;
Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C),
(D), (2)(E), (F), (I), (J), (b)(3)(A), (5), (8), Jan. 6,
2006, 119 Stat. 3555, 3556; Pub. L. 110–181, div. C,
title XXXV, § 3522(a)(8), (9)(E), (b), Jan. 28, 2008,
122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53732(a) ......

46 App.:1279d(a).

53732(b) ......
53732(c)(1) ..

46 App.:1279d(b).
46 App.:1274(d)(3)(A).

53732(c)(2) ..

46 App.:1273(g)(1).

53732(d) ......
53732(e) ......
53732(f) .......

46 App.:1274(d)(3)(B).
46 App.:1274(j).
46 App.:1273(g)(2).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1111, as added Pub. L.
103–160, div. A, title XIII,
§ 1355(a), Nov. 30, 1993, 107
Stat. 1811.
June 29, 1936, ch. 858, title
XI, § 1104A(d)(3), (j), as
added Pub. L. 103–160, div.
A, title XIII, § 1356(3)(D),
(E), Nov. 30, 1993, 107 Stat.
1813, 1814.
June 29, 1936, ch. 858, title
XI, § 1103(g), as added Pub.
L. 103–160, div. A, title
XIII, § 1356(2)(B), Nov. 30,
1993, 107 Stat. 1812.

In subsection (f), the source provides that the authority to issue commitments to guarantee obligations for
eligible export vessels expires after the later of three
events. The first event, which is ‘‘(A) the 5th anniversary of the date on which the Secretary publishes final
regulations setting forth the application procedures for
the issuance of commitments to guarantee obligations
for eligible export vessels’’, is omitted because the final
regulations were published on September 16, 1994. See
59 Fed. Reg. 47548. The second event, which is ‘‘(B) the
last day of any 5-year period in which funding and
guarantee authority for obligations for eligible export
vessels have been continuously available’’, is omitted
because that date was November 11, 1998, five years
after enactment of the Department of Defense Appropriations Act, 1994 (Pub. L. 103–139, Nov. 11, 1993, 107
Stat. 1418).
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(C), (D), (2)(E), (F), (I), (J), (b)(3)(A),
(5), (8). See 2006 Amendment note below.
Pub. L. 110–181, § 3522(a)(8), (9)(E), incorporated the
substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(C), (D), (2)(E), (F), (I), (J), (b)(3)(A), (5), (8),
into this section by substituting ‘‘Administrator’’ for
‘‘Secretary of Transportation’’ in subsec. (b)(2)(A) and
‘‘Administrator’’ for ‘‘Secretary’’ wherever else appearing, except where ‘‘Secretary’’ was followed by ‘‘of the
Treasury’’, ‘‘of State’’, or ‘‘of Defense’’, and by inserting ‘‘of Defense’’ after ‘‘United States. The Secretary’’
in subsec. (e)(2). See 2006 Amendment note below and

(a) DEFINITIONS.—In this section:
(1) ADVANCED SHIPBUILDING TECHNOLOGY.—
The term ‘‘advanced shipbuilding technology’’
includes—
(A) numerically controlled machine tools,
robots, automated process control equipment, computerized flexible manufacturing
systems, associated computer software, and
other technology for improving shipbuilding
and related industrial production that advance the state-of-the-art; and
(B) novel techniques and processes designed to improve shipbuilding quality, productivity, and practice, and to promote sustainable development, including engineering
design, quality assurance, concurrent engineering, continuous process production technology, energy efficiency, waste minimization, design for recyclability or parts reuse,
inventory management, upgraded worker
skills, and communications with customers
and suppliers.
(2) GENERAL SHIPYARD FACILITY.—The term
‘‘general shipyard facility’’ means—
(A) for operations on land—
(i) a structure or appurtenance thereto
designed for the construction, reconstruction, repair, rehabilitation, or refurbishment of a vessel, including a graving dock,
building way, ship lift, wharf, or pier
crane;
(ii) the land necessary for the structure
or appurtenance; and
(iii) equipment that is for use with the
structure or appurtenance and that is necessary for performing a function referred
to in clause (i); and
(B) for operations not on land, a vessel,
floating drydock, or barge built in the
United States and used for, equipped to be
used for, or of a type normally used for, performing a function referred to in subparagraph (A)(i).
(3) MODERN SHIPBUILDING TECHNOLOGY.—The
term
‘‘modern
shipbuilding
technology’’
means the best available proven technology,
techniques, and processes appropriate to enhancing the productivity of shipyards.
(b) GENERAL AUTHORITY.—Under subchapter I
of this chapter, the Administrator may guarantee or make a commitment to guarantee the
payment of the principal of and interest on an
obligation for advanced shipbuilding technology
and modern shipbuilding technology of a general
shipyard facility in the United States. Only a
private shipyard is eligible to receive a guarantee.

§ 53734

TITLE 46—SHIPPING

(c) APPLICABILITY OF OTHER PROVISIONS.—Except as otherwise provided in this section, a
guarantee or commitment to guarantee under
this section is subject to all the provisions applicable to a guarantee or commitment to guarantee under subchapter I of this chapter.
(d) AMOUNT OF OBLIGATION.—The principal
amount of an obligation guaranteed under this
chapter may not exceed 87.5 percent of the actual cost of the advanced shipbuilding technology or modern shipbuilding technology.
(e) TRANSFER OF AMOUNTS.—The Administrator may accept the transfer of amounts from
a department, agency, or instrumentality of the
United States Government and may use those
amounts to cover the cost (as defined in section
502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a)) of making guarantees or commitments to guarantee under this section.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1623;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(2)(K), Jan. 6, 2006, 119 Stat. 3555; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(9)(F), (b),
Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53733(a) ......

46 App.:1279e(d).

53733(b) ......

46 App.:1279e(a).
46 App.:1280a.

53733(c) ......
53733(d) ......
53733(e) ......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1112, as added Pub. L.
103–160, div. A, title XIII,
§ 1357(a), Nov. 30, 1993, 107
Stat. 1814.
Pub. L. 103–160, title XIII,
§ 1358, Nov. 30, 1993, 107
Stat. 1816.

46 App.:1279e(b)
(words before ‘‘except’’).
46 App.:1279e(b)
(words beginning
with ‘‘except’’).
46 App.:1279e(c).

In subsection (a)(2)(A)(i), the words ‘‘(as defined in
title 1)’’ are omitted as unnecessary because chapter 1
of the revised title contains a title-wide definition of
‘‘vessel’’ that incorporates the definition in title 1,
United States Code.
In subsection (b), the words ‘‘and subject to the terms
the Secretary shall be prescribe’’ are omitted as unnecessary because section 53702(a) of the revised title provides the Secretary authority to prescribe the terms.
The words ‘‘Only a private shipyard is eligible to receive a guarantee’’ are substituted for 46 App. U.S.C.
1280a to eliminate unnecessary words.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(2)(K). See 2006 Amendment note below.
Subsecs. (b), (e). Pub. L. 110–181, § 3522(a)(9)(F), incorporated the substance of the amendment by Pub. L.
109–163, § 3507(a)(2)(K), into this section by substituting
‘‘Administrator’’ for ‘‘Secretary’’. See 2006 Amendment
note below and section 18(a) of Pub. L. 109–304, set out
as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(2)(K), which directed
the amendment of section 1279e of the former Appendix
to this title from which this section was derived, was
repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment note for subsecs. (b), (e) and Historical and Revision notes above.

§ 53734. Replacement of vessels
changes in operating standards

because

of

(a) GENERAL AUTHORITY.—Notwithstanding
any other provision of this chapter, the Sec-

Page 358

retary or Administrator, on terms the Secretary
or Administrator may prescribe, may guarantee
or make a commitment to guarantee the payment of the principal of and interest on an obligation that aids in financing or refinancing (including reimbursement of an obligor for expenditures previously made for) a contract for the
construction or reconstruction of a vessel if—
(1) the vessel is designed and to be used for
commercial use in coastwise, intercoastal, or
foreign trade;
(2) the construction or reconstruction is necessary to replace a vessel that cannot continue to be operated because of a change required by law in the standards for the operation of vessels, and the applicant for the
guarantee or commitment would not otherwise legally be able to continue operating vessels in the trades in which the applicant operated vessels before the change;
(3) the applicant is presently engaged in
transporting cargoes in vessels of the type and
class that will be constructed or reconstructed
under this section and agrees to employ vessels constructed or reconstructed under this
section as replacements only for vessels made
obsolete by the change in operating standards;
(4) the capacity of the vessels to be constructed or reconstructed under this section
will not increase the cargo carrying capacity
of the vessels being replaced;
(5) the Secretary or Administrator has not
determined that the market demand for the
vessel over its useful life will diminish so as to
make granting the guarantee fiduciarily imprudent;
(6) the vessel, if to be reconstructed, will
have a useful life of at least 15 years after the
reconstruction; and
(7) the Secretary or Administrator has considered the criteria specified in section
53708(a)(3)–(5) of this title.
(b) TERM AND AMOUNT OF OBLIGATION.—
(1) TERM.—The term of an obligation guaranteed under this section may not exceed 25
years.
(2) AMOUNT.—The amount of an obligation
guaranteed under this section may not exceed
87.5 percent of the actual cost or depreciated
actual cost to the applicant for the construction or reconstruction of the vessel. The Secretary or Administrator may not establish a
percentage under this paragraph that is to be
applied uniformly to all guarantees or commitments to guarantee made under this section.
(c) APPLICABILITY OF OTHER PROVISIONS.—A
guarantee or commitment to guarantee under
this section is also subject to sections 53701,
53702(a), 53704, 53705, 53707(a), 53708(d) and (e),
53709(a), 53710(a)(1), (2), and (4) and (c), 53711(a),
53713, 53714, 53717, and 53721–53725 of this title.
(d) SECURITY AGAINST DEFAULT.—The Secretary or Administrator shall require by regulation that an applicant under this section provide
adequate security against default.
(e) GUARANTEE FEES.—The Secretary or Administrator may establish a fee for the guarantee of an obligation under this section that is in
addition to the fee established under section
53714 of this title. The fee may be—

Page 359

TITLE 46—SHIPPING

(1) an annual fee of not more than an additional 1 percent added to the fee established
under section 53714 of this title; or
(2) a fee based on the amount of the obligation versus the percentage of the obligor’s
fleet being replaced by vessels constructed or
reconstructed under this section.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1624;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(E), Jan. 6, 2006, 119 Stat. 3555; Pub. L.
110–181, div. C, title XXXV, § 3522(a)(10)(B), (b),
Jan. 28, 2008, 122 Stat. 598.)
HISTORICAL AND REVISION NOTES
Revised
Section
53734(a) ......

53734(b) ......
53734(c) ......
53734(d) ......
53734(e) ......

Source (U.S. Code)
46 App.:1274a(a),
(b)(3).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1104B, as added Pub.
L.
101–380,
title
IV,
§ 4115(f)(2), Aug. 18, 1990,
104 Stat. 521; amended
Pub. L. 102–587, title VI,
§ 6204, Nov. 4, 1992, 106
Stat. 5094; Pub. L. 103–160,
div. A, title XIII, § 1356(4),
Nov. 30, 1993, 107 Stat.
1814; Pub. L. 104–239,
§ 11(2), Oct. 8, 1996, 110
Stat. 3134.

46 App.:1274a(b)
(less (3)).
46 App.:1274a(d).
46 App.:1274a(c)(1)
(1st sentence).
46 App.:1274a(c)(1)
(2d sentence), (2).

In subsection (a), in paragraph (1), the words ‘‘as defined in section 1244 of this Appendix’’ are omitted because the definition of ‘‘foreign commerce or trade’’ in
chapter 1 of the revised title applies without having to
say so specifically. Paragraph (6) is substituted for 46
App. U.S.C. 1274a(b)(3) to improve the organization of
the source provisions.
In subsection (b)(2), the words ‘‘by rule, regulation, or
procedure’’ are omitted as unnecessary and for consistency with section 53709(d) of the revised title.
In subsections (c) and (e), the language concerning
the Vessel Replacement Guarantee Fund and the Federal Ship Financing Fund is omitted as obsolete. See
the explanation for section 53717.
AMENDMENTS
2008—Pub. L. 110–181, § 3522(b), repealed Pub. L.
109–163, § 3507(a)(1)(E). See 2006 Amendment note below.
Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163,
§ 3507(a)(1)(E), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appearing. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–163, § 3507(a)(1)(E), which directed
the amendment of section 1274a of the former Appendix
to this title from which this section was derived, was
repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above.

§ 53735. Fisheries financing and capacity reduction
(a) DEFINITION.—In this section, the term ‘‘program’’ means a fishing capacity reduction program established under section 312 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a).
(b) GUARANTEE AUTHORITY.—The Secretary
may guarantee the repayment of debt obligations issued by entities under this section. Debt
obligations to be guaranteed may be issued by
any entity that has been approved by the Sec-

§ 53735

retary and has agreed with the Secretary to conditions the Secretary considers necessary for
this section to achieve the objective of the program and to protect the interest of the United
States.
(c) REQUIREMENTS OF OBLIGATIONS.—A debt obligation guaranteed under this section shall—
(1) be treated in the same manner and to the
same extent as other obligations guaranteed
under this chapter, except with respect to provisions of this chapter that by their nature
cannot be applied to obligations guaranteed
under this section;
(2) have the fishing fees established under
the program paid into a separate subaccount
of the fishing capacity reduction fund established under this section;
(3) not exceed $100,000,000 in an unpaid principal amount outstanding at any one time for
a program;
(4) have such maturity (not to exceed 20
years), take such form, and contain such conditions as the Secretary determines necessary
for the program to which they relate;
(5) have as the exclusive source of repayment (subject to the second sentence of subsection (d)(2)) and as the exclusive payment
security, the fishing fees established under the
program; and
(6) at the discretion of the Secretary be issued in the public market or sold to the Federal Financing Bank.
(d) FISHING CAPACITY REDUCTION FUND.—
(1) IN GENERAL.—There is a separate account
in the Treasury, known as the Fishing Capacity Reduction Fund. Within the Fund, at least
one subaccount shall be established for each
program into which shall be paid all fishing
fees established under the program and other
amounts authorized for the program.
(2) AVAILABILITY OF AMOUNTS.—Amounts in
the Fund shall be available, without appropriation or fiscal year limitation, to the Secretary to pay the cost of the program, including payments to financial institutions to pay
debt obligations incurred by entities under
this section. Funds available for this purpose
from other amounts available for the program
may also be used to pay those debt obligations.
(3) INVESTMENT.—Amounts in the Fund that
are not currently needed for the purpose of
this section shall be kept on deposit or invested in obligations of the United States Government.
(e) REGULATIONS.—The Secretary shall prescribe regulations the Secretary considers necessary to carry out this section.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1625;
Pub.
L.
109–163,
div.
C,
title
XXXV,
§ 3507(a)(1)(H), (d), Jan. 6, 2006, 119 Stat. 3555,
3557; Pub. L. 110–181, div. C, title XXXV, § 3522(b),
Jan. 28, 2008, 122 Stat. 598.)

§ 53901

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

53735(a) ......

46 App.:1279f(e).

53735(b)
53735(c)
53735(d)
53735(e)

46
46
46
46

......
......
......
......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XI, § 1111, as added Pub. L.
104–297, title III, § 303, Oct.
11, 1996, 110 Stat. 3616;
Pub. L. 104–208, title I,
§ 101 [title II, § 211(b)],
Sept. 30, 1996, 110 Stat.
3009–41.

App.:1279f(a).
App.:1279f(b).
App.:1279f(c).
App.:1279f(d).

CODIFICATION
This section was derived from section 1111 of act June
29, 1936, as added by Pub. L. 104–297, § 303, which was
classified to section 1279f of the former Appendix to
this title. Section 1111 was renumbered section 1113 of
the Act by Pub. L. 109–163, div. C, title XXXV, § 3507(d),
Jan. 6, 2006, 119 Stat. 3557, which was repealed by Pub.
L. 110–181, div. C, title XXXV, § 3522(b), Jan. 28, 2008, 122
Stat. 598. See Historical and Revision notes above and
section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.

Page 360

‘‘transportation in the waterborne commerce
of the United States’’ includes the operation
of a vessel in the fisheries, except only for
sport fishing.
(4) WAR RISKS.—The term ‘‘war risks’’ includes, to the extent the Secretary of Transportation determines—
(A) any part of a loss excluded from marine insurance coverage under a ‘‘free of capture or seizure’’ clause or analogous clause;
and
(B) any other loss from a hostile act, including confiscation, expropriation, nationalization, or deprivation.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1626.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53901(1) ......

46 App.:1281(a).

53901(2) ......

46 App.:1283(b) (last
sentence).

53901(3) ......
53901(4) ......

46 App.:1281(b).
46 App.:1281(c).

AMENDMENTS
2008—Pub. L. 110–181 repealed Pub. L. 109–163,
§ 3507(a)(1)(H), (d). See 2006 Amendment note below and
Codification note above.
2006—Pub. L. 109–163, § 3507(a)(1)(H), which directed
the amendment of section 1279f of the former Appendix
to this title from which this section was derived by
substituting ‘‘Secretary or Administrator’’ for ‘‘Secretary’’ wherever appearing, was repealed by Pub. L.
110–181, § 3522(b). See Historical and Revision notes
above.

CHAPTER 539—WAR RISK INSURANCE
Sec.

53901.
53902.
53903.
53904.
53905.
53906.
53907.
53908.
53909.
53910.
53911.
53912.

Definitions.
Authority to provide insurance.
Insurable interests.
Liability insurance for persons involved in
war or defense efforts.
Agency insurance.
Hull insurance valuation.
Reinsurance.
Additional insurance privately obtained.
War risk insurance revolving fund.
Administrative.
Civil actions for losses.
Expiration date.

§ 53901. Definitions
In this chapter:
(1) AMERICAN VESSEL.—The term ‘‘American
vessel’’ includes—
(A) a documented vessel with a registry or
coastwise endorsement under chapter 121 of
this title;
(B) an undocumented vessel owned or chartered by or made available to the United
States Government; and
(C) a tug, barge, or other watercraft
(whether or not documented) owned by a citizen of the United States and used in essential water transportation or in the fisheries,
except only for sport fishing.
(2) CARGO.—The term ‘‘cargo’’ includes a
loaded or empty container on a vessel.
(3) TRANSPORTATION IN THE WATERBORNE COMMERCE OF THE UNITED STATES.—The term

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, §§ 1201(a), (b), as added
Sept. 7, 1950, ch. 906, 64
Stat. 773.
June 29, 1936, ch. 858, title
XII, § 1203(b) (last sentence), as added Sept. 7,
1950, ch. 906, 64 Stat. 774;
Pub. L. 94–523, § 2, Oct. 17,
1976, 90 Stat. 2474.
June 29, 1936, ch. 858, title
XII, § 1201(c), as added
Sept. 7, 1950, ch. 906, 64
Stat. 773; restated Pub. L.
107–107, title XXXV, § 3502,
Dec. 28, 2001, 115 Stat.
1392.

In paragraph (1)(A), the words ‘‘a documented vessel
with a registry or coastwise endorsement under chapter
121 of this title’’ are substituted for ‘‘any vessel registered, enrolled, or licensed under the laws of the
United States’’ because of 46 U.S.C. 12101(b).
In paragraph (1)(B). the words ‘‘or any department or
agency thereof’’ are omitted as surplus.
In paragraph (1)(C), the word ‘‘fisheries’’ is substituted for ‘‘fishing trade or industry’’ because of the
definition of ‘‘fisheries’’ in chapter 1 of the revised
title.

§ 53902. Authority to provide insurance
(a) IN GENERAL.—With the approval of the
President, and after such consultation with interested agencies of United States Government
as the President may require, the Secretary of
Transportation may provide insurance and reinsurance against loss or damage from war risks
as provided by this chapter whenever it appears
to the Secretary that insurance adequate for the
needs of the waterborne commerce of the United
States cannot be obtained on reasonable terms
and conditions from companies authorized to do
insurance business in a State of the United
States.
(b) CONSIDERATION OF RISK.—Insurance or reinsurance under this chapter shall be based, insofar as practicable, on consideration of the risk
involved.
(c) AVAILABILITY OF VESSEL DURING WAR OR
NATIONAL EMERGENCY.—Insurance or reinsurance for a vessel may be provided under this
chapter only on the condition that the vessel
will be available to the Government in time of
war or national emergency.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1627.)

Page 361
HISTORICAL AND REVISION NOTES
Revised
Section
53902 ..........

§ 53905

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1282.

HISTORICAL AND REVISION NOTES

Source (Statutes at Large)

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

June 29, 1936, ch. 858, title
XII, § 1202, as added Sept.
7, 1950, ch. 906, 64 Stat. 773;
Pub. L. 101–115, § 7(a), Oct.
13, 1989, 103 Stat. 694.

53903(a) ......

46 App.:1283(a) (1st
sentence), (b) (1st
sentence), (c)–(f).

June 29, 1936, ch. 858, title
XII, § 1203(a) (1st, 2d sentences), (b) (1st sentence),
(c)–(f), as added Sept. 7,
1950, ch. 906, 64 Stat. 773,
774; Pub. L. 94–523, §§ 1–3,
Oct. 17, 1976, 90 Stat. 2474.

53903(b) ......

46 App.:1283(a) (2d
sentence).
46 App.:1284.

§ 53903. Insurable interests
(a) IN GENERAL.—The Secretary of Transportation may provide insurance and reinsurance
under this chapter for—
(1) an American vessel, including a vessel
under construction;
(2) a foreign vessel—
(A) owned by a citizen of the United
States; or
(B) engaged in transportation in the waterborne commerce of the United States or in
such other transportation by water or such
other services as the Secretary considers to
be in the interest of the national defense or
national economy of the United States,
when so engaged;
(3) cargo—
(A) shipped or to be shipped on a vessel insurable under this section, including by express or registered mail;
(B) owned by a citizen or resident of the
United States;
(C) imported to or exported from the
United States, or sold or purchased by a citizen or resident of the United States, under a
contract of sale or purchase the terms of
which provide that the risk of loss by war
risks or the obligation to provide insurance
against war risks is on a citizen or resident
of the United States; or
(D) shipped between ports in the United
States;
(4) disbursements, including advances to
masters and general average disbursements,
and freight and passage money of a vessel insurable under this section;
(5) personal effects of an individual on a vessel insurable under this section;
(6) loss of life, injury, or detention by an
enemy of the United States after capture, with
respect to an individual on a vessel insurable
under this section; and
(7) statutory or contractual obligations or
other liabilities of a vessel insurable under
this section or of the owner or charterer of
such a vessel, of a nature customarily covered
by insurance.
(b) CONSIDERATIONS FOR FOREIGN VESSELS.—In
determining whether to provide insurance or reinsurance for a foreign vessel, the Secretary
shall consider the characteristics, employment,
and general management of the vessel by the
owner or charterer.
(c) NON-WAR RISKS.—Insurance of a risk under
subsection (a)(5)–(7), insofar as it involves a liability related to an individual on the vessel,
may include risks other than war risks to the
extent the Secretary considers advisable.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1627.)

53903(c) ......

June 29, 1936, ch. 858, title
XII, § 1204, as added Sept.
7, 1950, ch. 906, 64 Stat. 774.

In subsections (a)(2) and (b), the words ‘‘foreign vessel’’ are substituted for ‘‘foreign-flag vessels’’ because
of the definition of ‘‘foreign vessel’’ in chapter 1 of the
revised title.
In paragraph (3), references to the territories and possessions of the United States are omitted as unnecessary because of the definition of ‘‘United States’’ in
chapter 1 of the revised title.
In paragraph (5), the words ‘‘individual on a vessel insurable under this section’’ are substituted for ‘‘masters, officers, and crews of such vessels, and of other
persons transported on such vessels’’ to eliminate unnecessary words.
In paragraph (6), the words ‘‘individual on a vessel insurable under this section’’ are substituted for ‘‘Masters, officers, members of the crews of such vessels and
other persons employed or transported thereon’’ to
eliminate unnecessary words.

§ 53904. Liability insurance for persons involved
in war or defense efforts
(a) IN GENERAL.—The Secretary of Transportation may provide insurance under this chapter
against legal liability that a person may incur
in providing services or facilities for a vessel if,
in the opinion of the Secretary, the insurance—
(1) is required in prosecuting a war or for national defense; and
(2) cannot be obtained at reasonable rates or
on reasonable terms and conditions from approved companies authorized to do insurance
business in a State of the United States.
(b) LIMITATIONS.—Employer liability insurance
and worker compensation insurance against
legal liability to employees may not be provided
under this section.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1628.)
HISTORICAL AND REVISION NOTES
Revised
Section
53904 ..........

Source (U.S. Code)
46 App.:1286.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1206, as added Sept.
7, 1950, ch. 906, 64 Stat. 774;
Aug. 3, 1956, ch. 929, § 5, 70
Stat. 986.

In subsection (a), the words ‘‘a vessel’’ are substituted for ‘‘any American- or foreign-flag vessel, public or private’’ to eliminate unnecessary words.

§ 53905. Agency insurance
(a) IN GENERAL.—With the approval of the
President, an agency of the United States Government may obtain insurance provided for by
this chapter from the Secretary of Transportation, except as provided in sections 17302 and
17303 of title 40.
(b) PREMIUM WAIVERS.—With the approval of
the President, the Secretary of Transportation

§ 53906

TITLE 46—SHIPPING

Page 362

may provide insurance under this chapter at the
request of the Secretary of Defense and other
agencies the President may prescribe, without
payment of an insurance premium if the Secretary of Defense or agency agrees to indemnify
the Secretary of Transportation against loss
covered by the insurance. The Secretary of Defense and agencies may make such an indemnity
agreement.
(c) PRESIDENTIAL APPROVAL.—The signature of
the President (or an official designated by the
President) on the agreement shall be treated as
the approval required by section 53902(a) of this
title.

(c)(2), premiums paid under the policy shall be
adjusted based on the court’s determination and
the rates provided for in the policy.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1628.)

In subsection (c), the words ‘‘Provided, That in the
event of an election by the insured to reject the stated
valuation fixed by the Secretary and to sue in the
courts, the amount of the judgment will be payable
without regard to the limitations contained in section
1242–1 of this Appendix, although the excess of any
amounts advanced on account of just compensation
over the amount of the court judgment will be required
to be refunded’’ are omitted as obsolete because the
section referred to, which was from the Department of
Commerce and Related Agencies Appropriation Act,
1959 (Pub. L. 85–469, 72 Stat. 231), has been omitted from
the United States Code as obsolete.

HISTORICAL AND REVISION NOTES
Revised
Section
53905 ..........

Source (U.S. Code)
46 App.:1285.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1205, as added Sept.
7, 1950, ch. 906, 64 Stat. 774;
Pub. L. 105–261, div. A,
title X, § 1071(a), Oct. 17,
1998, 112 Stat. 2137.

§ 53906. Hull insurance valuation
(a) STATED VALUATION.—The valuation in a
hull insurance policy for actual or constructive
total loss of the insured vessel shall be a stated
valuation determined by the Secretary of Transportation. The stated valuation—
(1) shall exclude national defense features
paid for by the United States Government; and
(2) may not exceed the amount that would be
payable if the ownership of the vessel had been
requisitioned under chapter 563 of this title at
the time the insurance attached under the policy.
(b) REJECTING STATED VALUATION.—Within 60
days after the insurance attaches under a policy
referred to in subsection (a) or within 60 days
after the Secretary determines the valuation,
whichever is later, the insured may reject the
valuation and pay, at the rate provided in the
policy, premiums based on the asserted valuation the insured specifies at the time of rejection. However, the asserted valuation is not
binding on the Government in any subsequent
action on the policy.
(c) AMOUNT OF CLAIM.—If a vessel is actually
or constructively totally lost and the insured
under a policy referred to in subsection (a) has
not rejected the stated valuation determined by
the Secretary, the amount of a claim adjusted,
compromised, settled, adjudged, or paid may not
exceed the stated valuation. However, if the insured has rejected the valuation, the insured—
(1) shall be paid, as a tentative advance only,
75 percent of the stated valuation; and
(2) may bring a civil action against the
United States in a court having jurisdiction of
the claim to recover a valuation equal to the
just compensation the court determines would
have been payable if the ownership of the vessel had been requisitioned under chapter 563 of
this title at the time the insurance attached
under the policy.
(d) ADJUSTING PREMIUMS.—If a court makes a
determination as provided under subsection

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1629.)
HISTORICAL AND REVISION NOTES
Revised
Section
53906 ..........

Source (U.S. Code)
46 App.:1289(a)(2).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1209(a)(2), as added
Sept. 7, 1950, ch. 906, 64
Stat. 775; Aug. 3, 1956, ch.
929, § 1, 70 Stat. 984; Pub.
L. 88–478, § 1, Aug. 22, 1964,
78 Stat. 587.

§ 53907. Reinsurance
(a) IN GENERAL.—To the extent the Secretary
of Transportation is authorized to provide insurance under this chapter, the Secretary may provide reinsurance to a company authorized to do
insurance business in a State of the United
States. The Secretary may obtain reinsurance
from such a company for any insurance provided
by the Secretary under this chapter.
(b) RATES.—The Secretary may not provide reinsurance at rates less than, nor obtain reinsurance at rates more than, the rates established
by the Secretary on the same or similar risks or
the rates charged by the insurance company for
the insurance reinsured, whichever is more advantageous to the Secretary. However, the Secretary may provide an allowance to the insurance company for the costs of services and facilities the company provides, in an amount the
Secretary considers reasonable according to
good business practice. The allowance to the
company may not include any amount for soliciting or stimulating insurance business.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1629.)
HISTORICAL AND REVISION NOTES
Revised
Section
53907 ..........

Source (U.S. Code)
46 App.:1287.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1207, as added Sept.
7, 1950, ch. 906, 64 Stat. 775.

In subsection (a), the words ‘‘insurance under this
chapter’’ are substituted for ‘‘marine, war risk, and liability insurance’’ for consistency in this chapter. The
words ‘‘in whole or in part’’ are omitted as unnecessary. The words ‘‘obtain reinsurance from’’ are substituted for ‘‘reinsure with, or cede or retrocede to’’ for
clarity and to eliminate unnecessary words.

§ 53908. Additional insurance privately obtained
With the approval of the Secretary of Transportation, a person having an insurable interest
in a vessel may obtain insurance on the vessel

Page 363

with other underwriting agents in addition to
the insurance with the Secretary. The Secretary
is not entitled to the benefit of the additional
insurance.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1630.)
HISTORICAL AND REVISION NOTES
Revised
Section
53908 ..........

Source (U.S. Code)
46 App.:1293.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1213, as added Sept.
7, 1950, ch. 906, 64 Stat. 777;
Pub. L. 97–31, § 12(141),
Aug. 6, 1981, 95 Stat. 166.

§ 53909. War risk insurance revolving fund
(a) IN GENERAL.—There is a war risk insurance
revolving fund in the Treasury.
(b) DEPOSITS.—There shall be deposited in the
fund amounts appropriated to carry out this
chapter and amounts received in carrying out
this chapter.
(c) PAYMENTS.—There shall be paid from the
fund amounts for return premiums, losses, settlements, judgments, and all liabilities incurred
by the United States Government under this
chapter.
(d) INVESTMENT.—The Secretary of Transportation may request the Secretary of the Treasury to invest such portion of the fund as is not,
in the judgment of the Secretary of Transportation, required to meet the current needs of the
fund. These investments shall be made by the
Secretary of the Treasury in public debt securities of the Government, with maturities suitable
to the needs of the fund, and bearing interest
rates determined by the Secretary of the Treasury, taking into consideration current market
yields on outstanding marketable obligations of
the Government of comparable maturity. Interest and benefits from the securities shall be deposited in the fund.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1630;
Pub. L. 109–364, div. C, title XXXV, § 3510(a)(1),
Oct. 17, 2006, 120 Stat. 2520; Pub. L. 110–181, div.
C, title XXXV, § 3526(g), Jan. 28, 2008, 122 Stat.
602.)
HISTORICAL AND REVISION NOTES
Revised
Section
53909 ..........

§ 53910

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1288.

46 App.:1288a.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1208, as added Sept.
7, 1950, ch. 906, 64 Stat. 775;
Pub. L. 87–743, Oct. 3, 1962,
76 Stat. 740; Pub. L. 97–31,
§ 12(139), Aug. 6, 1981, 95
Stat. 166; Pub. L. 108–375,
div.
C,
title
XXXV,
§ 3502(b), Oct. 28, 2004, 118
Stat. 2195.
Nov. 1, 1951, ch. 664, par.
under heading ‘‘War–Risk
Insurance
Revolving
Fund’’, 65 Stat. 746; Pub.
L. 97–31, § 12(140), Aug. 6,
1981, 95 Stat. 166.

In subsection (c), the reference to the Fiscal Service
[previously Division of Disbursement] in the Treasury
Department is omitted as unnecessary.
In subsection (d), the amendment by section 3502(b) of
Public Law 108–375, which struck the third sentence in
46 App. U.S.C. 1288 and inserted new material, was executed as if it were intended to strike the fourth sentence instead, to reflect probably [sic] intent.

The text of 46 App. U.S.C. 1288(b) is omitted as unnecessary because enactment of a law authorizing certain
governmental functions is itself an authorization of appropriations to carry out those functions. The text of 46
App. U.S.C. 1288a is omitted as executed and impliedly
repealed by 46 App. U.S.C. 1119.
AMENDMENTS
2008—Pub. L. 110–181 repealed Pub. L. 109–364,
§ 3510(a)(1). See 2006 Amendment note below.
2006—Pub. L. 109–364, § 3510(a)(1), which directed the
amendment of section 1288(a) of the former Appendix to
this title from which this section was derived in part,
was repealed by Pub. L. 110–181. The substance of the
amendment was incorporated in this section as enacted
by Pub. L. 109–304. See Historical and Revision notes
above.
EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109–364, div. C, title XXXV, § 3510(a)(2), Oct. 17,
2006, 120 Stat. 2520, which provided that the amendments made by paragraph (1) [amending section 1288(a)
of the former Appendix to this title, from which this
section was derived in part] were to be effective as if
enacted by section 3502 of Pub. L. 108–375, was repealed
by Pub. L. 110–181, div. C, title XXXV, § 3526(g), Jan. 28,
2008, 122 Stat. 602.

§ 53910. Administrative
(a) ACCORDANCE WITH COMMERCIAL PRACTICE.—
In carrying out this chapter, the Secretary of
Transportation may act in accordance with
commercial practice in the marine insurance
business.
(b) REGULATIONS.—The Secretary may prescribe regulations the Secretary considers appropriate to carry out this chapter.
(c) POLICIES, RATES, AND ANNUAL FEES.—The
Secretary may prescribe and change forms and
policies, and fix and change the amounts insured
and rates of premium, under this chapter.
(d) ANNUAL FEES.—The Secretary may charge
and collect an annual fee in an amount calculated to cover the expenses of processing applications for insurance, employing underwriting agents, and appointing experts under this
chapter.
(e) PAYMENT OF CLAIMS AND JUDGMENTS.—The
Secretary may settle and pay claims, and pay
judgments against the United States, related to
insurance under this chapter.
(f) UNDERWRITING AGENTS.—
(1) IN GENERAL.—The Secretary may, and
when the Secretary finds it practical to do so
shall, employ a domestic company or group of
domestic companies, authorized to do marine
insurance business in a State of the United
States, to act as underwriting agent for the
Secretary. The services of an underwriting
agent may be used in adjusting claims, but a
claim may not be paid until approved by the
Secretary.
(2) COMPENSATION.—The Secretary may
allow the company or group of companies reasonable compensation for services 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

§ 53911

TITLE 46—SHIPPING

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 Secretary, without regard to the
laws and regulations on the employment 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 prescribe by regulation vessel location reporting requirements for a vessel insured
under this chapter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1630.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

53910(a) ......

46 App.:1289(c) (1st
sentence).

53910(b) ......

46 App.:1289(a)(1)
(1st–19th words).
46 App.:1289(b) (1st
sentence).
46 App.:1289(b) (last
sentence).
46 App.:1289(a)(1)
(20th–last words).
46 App.:1289(d).
46 App.:1289(c) (last
sentence).
46 App.:1289(e).
46 App.:1289(f).
46 App.:1283(a) (last
sentence).

53910(c) ......
53910(d) ......
53910(e) ......
53910(f) .......
53910(g) ......
53910(h) ......
53910(i) .......
53910(j) .......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1209(a)(1), (b)–(f), as
added Sept. 7, 1950, ch. 906,
64 Stat. 775; Aug. 3, 1956,
ch. 929, § 1, 70 Stat. 984;
Pub. L. 94–523, § 4, Oct. 17,
1976, 90 Stat. 2474.

June 29, 1936, ch. 858, title
XII, § 1203(a) (last sentence), as added Sept. 7,
1950, ch. 906, 64 Stat. 774;
Pub. L. 94–523, § 1, Oct. 17,
1976, 90 Stat. 2474.

Subsection (e) is substituted for ‘‘may adjust and pay
losses, compromise and settle claims, whether in favor
of or against the United States and pay the amount of
any judgment rendered against the United States in
any suit, or the amount of any settlement agreed upon,
in respect of any claim under insurance authorized by
this subchapter’’ to eliminate unnecessary words.

§ 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

Page 364

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 indebtedness of the Government under
the insurance and there is a dispute about the
persons entitled to receive payment, the Government 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 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1631.)
HISTORICAL AND REVISION NOTES
Revised
Section
53911 ..........

Source (U.S. Code)
46 App.:1292.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1212, as added Sept.
7, 1950, ch. 906, 64 Stat. 776.

§ 53912. Expiration date
The authority of the Secretary of Transportation to provide insurance and reinsurance
under this chapter expires on December 31, 2015.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1632;
Pub. L. 110–417, div. C, title XXXV, § 3509, Oct. 14,
2008, 122 Stat. 4769.)

Page 365

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

53912 ..........

46 App.:1294.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
XII, § 1214, as added Sept.
7, 1950, ch. 906, 64 Stat. 777;
Aug. 3, 1955, ch. 492, 69
Stat. 440; Pub. L. 86–120,
July 31, 1959, 73 Stat. 266;
Pub. L. 89–89, July 27, 1965,
79 Stat. 264; Pub. L. 91–469,
§ 34, Oct. 21, 1970, 84 Stat.
1035; Pub. L. 94–523, § 5,
Oct. 17, 1976, 90 Stat. 2474;
Pub. L. 96–195, Feb. 25,
1980, 94 Stat. 63; Pub. L.
99–59, July 3, 1985, 99 Stat.
110; Pub. L. 101–115, § 7(b),
Oct. 13, 1989, 103 Stat. 694;
Pub. L. 104–106, title X,
§ 1094, Feb. 10, 1996, 110
Stat. 461; Pub. L. 104–239,
§ 12, Oct. 8, 1996, 110 Stat.
3134; Pub. L. 108–375, div.
C, title XXXV, § 3502(a),
Oct. 28, 2004, 118 Stat. 2195.

AMENDMENTS
2008—Pub. L. 110–417 substituted ‘‘December 31, 2015.’’
for ‘‘December 31, 2010.’’

CHAPTER 541—MISCELLANEOUS
Sec 1

54101.

Assistance for small shipyards and maritime
communities 1
PRIOR PROVISIONS

A prior chapter 541, Miscellaneous, consisting of section 54101 and relating to assistance for small shipyards
and maritime communities, added by Pub. L. 110–181,
div. C, title XXXV, § 3523(a)(6)(A), Jan. 28, 2008, 122 Stat.
599, was repealed by Pub. L. 110–417, div. C, title XXXV,
§ 3508(b), Oct. 14, 2008, 122 Stat. 4769, as amended by Pub.
L. 111–84, div. A, title X, § 1073(c)(14), Oct. 28, 2009, 123
Stat. 2475, effective Oct. 14, 2008, and as if included in
Pub. L. 110–417 as enacted.

§ 54101. Assistance for small shipyards and maritime communities
(a) ESTABLISHMENT OF PROGRAM.—Subject to
the availability of appropriations, the Administrator of the Maritime Administration shall execute agreements with shipyards to provide assistance—
(1) in the form of grants, loans, and loan
guarantees to small shipyards for capital improvements; and
(2) for maritime training programs to foster
technical skills and operational productivity
in communities whose economies are related
to or dependent upon the maritime industry.
(b) AWARDS.—In providing assistance under
the program, the Administrator shall—
(1) take into account—
(A) the economic circumstances and conditions of maritime communities;
(B) projects that would be effective in fostering efficiency, competitive operations,
and quality ship construction, repair, and reconfiguration; and
(C) projects that would be effective in fostering employee skills and enhancing productivity; and
(2) make grants within 120 days after the
date of enactment of the appropriations Act
for the fiscal year concerned.
1 So

in original. Probably should be followed by a period.

§ 54101

(c) USE OF FUNDS.—
(1) IN GENERAL.—Assistance provided under
this section may be used—
(A) to make capital and related improvements in small shipyards located in or near
maritime communities;
(B) to provide training for workers in communities whose economies are related to the
maritime industry; and
(C) for such other purposes as the Administrator determines to be consistent with and
supplemental to such activities.
(2) ADMINISTRATIVE COSTS.—Not more than 2
percent of amounts made available to carry
out the program may be used for the necessary
costs of grant administration.
(d) PROHIBITED USES.—Grants awarded under
this section may not be used to construct buildings or other physical facilities or to acquire
land unless such use is specifically approved by
the Administrator in support of subsection
(c)(1)(C).
(e) MATCHING REQUIREMENTS; ALLOCATION.—
(1) FEDERAL FUNDING.—Except as provided in
paragraph (2), Federal funds for any eligible
project under this section shall not exceed 75
percent of the total cost of such project.
(2) EXCEPTION.—If the Administrator determines that a proposed project merits support
and cannot be undertaken without a higher
percentage of Federal financial assistance, the
Administrator may award a grant for such
project with a lesser matching requirement
than is described in paragraph (1).
(3) ALLOCATION OF FUNDS.—The Administrator may not award more than 25 percent of
the funds appropriated to carry out this section for any fiscal year to any small shipyard
in one geographic location that has more than
600 employees.
(f) APPLICATIONS.—
(1) IN GENERAL.—To be eligible for assistance
under this section, an applicant shall submit
an application, in such form, and containing
such information and assurances as the Administrator may require, within 60 days after
the date of enactment of the appropriations
Act for the fiscal year concerned.
(2) MINIMUM STANDARDS FOR PAYMENT OR REIMBURSEMENT.—Each
application submitted
under paragraph (1) shall include—
(A) 1 a comprehensive description of—
(i) the need for the project;
(ii) the methodology for implementing
the project; and
(iii) any existing programs or arrangements that can be used to supplement or
leverage assistance under the program.
(3) PROCEDURAL SAFEGUARDS.—The Administrator, in consultation with the Office of the
Inspector General, shall issue guidelines to establish appropriate accounting, reporting, and
review procedures to ensure that—
(A) grant funds are used for the purposes
for which they were made available;
(B) grantees have properly accounted for
all expenditures of grant funds; and
1 So

in original. There is no subpar. (B).

§ 55101

TITLE 46—SHIPPING

(C) grant funds not used for such purposes
and amounts not obligated or expended are
returned.
(4) PROJECT APPROVAL REQUIRED.—The Administrator may not award a grant under this
section unless the Administrator determines
that—
(A) sufficient funding is available to meet
the matching requirements of subsection (e);
(B) the project will be completed without
unreasonable delay; and
(C) the recipient has authority to carry
out the proposed project.
(g) AUDITS AND EXAMINATIONS.—All grantees
under this section shall maintain such records
as the Administrator may require and make
such records available for review and audit by
the Administrator.
(h) SMALL SHIPYARD DEFINED.—In this section,
the term ‘‘small shipyard’’ means a shipyard facility in one geographic location that does not
have more than 1,200 employees.
(i) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the Administrator of the Maritime Administration for
each of fiscal years 2009 through 2013 to carry
out this section—
(1) $5,000,000 for training grants; and
(2) $25,000,000 for capital and related improvements.
(Added Pub. L. 110–417, div. C, title XXXV,
§ 3508(a), Oct. 14, 2008, 122 Stat. 4767.)

Sec.

55121.

Transportation of merchandise
sengers on Canadian vessels.

PART D—PROMOTIONAL PROGRAMS
CHAPTER 551—COASTWISE TRADE
Sec.

55101.
55102.
55103.
55104.
55105.
55106.
55107.
55108.
55109.
55110.
55111.
55112.
55113.
55114.
55115.
55116.
55117.
55118.
55119.
55120.

Application of coastwise laws.
Transportation of merchandise.
Transportation of passengers.
Transportation of passengers between Puerto
Rico and other ports in the United States.
Transportation of hazardous waste.
Merchandise transferred between barges.
Empty cargo containers and barges.
Platform jackets.
Dredging.
Transportation of valueless material or
dredged material.
Towing.
Vessel escort operations and towing assistance.
Use of foreign documented oil spill response
vessels.
Unloading fish from foreign vessels.
Supplies on fish processing vessels.
Canadian rail lines.
Great Lakes rail route.
Foreign railroads whose road enters by ferry,
tugboat, or towboat.
Yukon River.
Transshipment of imported merchandise intended for immediate exportation.

and

pas-

AMENDMENTS
2008—Pub. L. 110–181, div. C, title XXXV, § 3527(b)(2),
Jan. 28, 2008, 122 Stat. 602, inserted ‘‘valueless material
or’’ before ‘‘dredged material’’ in item 55110.

§ 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);
or
(3) the Virgin Islands until the President declares by proclamation that the coastwise
laws apply to the Virgin Islands.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1632;
Pub. L. 110–181, div. C, title XXXV, § 3527(a), Jan.
28, 2008, 122 Stat. 602.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

55101(a) ......

46 App.:877 (words
before last proviso).

55101(b)(1) ..

48:1664.

55101(b)(2) ..

48:1801 note (Covenant § 503(b)).

55101(b)(3) ..

46 App.:877 note.

55101(b)(4) ..

46 App.:877 (last
proviso).

PRIOR PROVISIONS
A prior section 54101, added and amended Pub. L.
110–181, div. C, title XXXV, § 3523(a)(6)(B)–(D), Jan. 28,
2008, 122 Stat. 599, which related to assistance for small
shipyards and maritime communities, was repealed by
Pub. L. 110–417, div. C, title XXXV, § 3508(b), Oct. 14,
2008, 122 Stat. 4769, as amended by Pub. L. 111–84, div.
A, title X, § 1073(c)(14), Oct. 28, 2009, 123 Stat. 2475, effective Oct. 14, 2008, and as if included in Pub. L. 110–417
as enacted.

Page 366

Source (Statutes at Large)
June 5, 1920, ch. 250, § 21, 41
Stat. 997; Apr. 16, 1936, ch.
228, 49 Stat. 1207; Pub. L.
97–31, § 12(47), Aug. 6, 1981,
95 Stat. 157.
June 14, 1934, ch. 523, 48
Stat. 963.
Pub. L. 94–241, § 1, Mar. 24,
1976, 90 Stat. 263; Pub. L.
98–213, § 9, Dec. 8, 1983, 97
Stat. 1461; Pub. L. 104–208,
div. A, title I, § 101(d)
[title I], Sept. 30, 1996, 110
Stat. 3009–196.
Proc. No. 3215, Dec. 12, 1957,
72 Stat. c19.

In subsection (a), the words ‘‘apply to the United
States, including’’ are substituted for ‘‘extend to’’ for
clarity. The words ‘‘From and after February 1, 1922’’
and ‘‘not covered thereby on June 5, 1920’’ are omitted
as obsolete. The requirement to establish adequate
steamship service to the island Territories and possessions is omitted as obsolete.
Subsection (b)(2) is based on section 503(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).
Subsection (b)(3) is based on Proc. No. 3215, Dec. 12,
1957, 72 Stat. c19, which provided that the President,
‘‘under and by virtue of the authority vested in me by
the aforesaid section 21 of the Merchant Marine Act,
1920 [46 App. U.S.C. 877], do hereby declare and proclaim
that the period for the establishment of an adequate
shipping service for Canton Island is extended until further notice by proclamation of the President, and that
the extension of the coastwise laws of the United
States to Canton Island is deferred until it is declared
by proclamation of the President that such adequate
shipping service has been established’’.
In subsection (b)(4), the words ‘‘and fix a date for the
going into effect of same’’ are omitted as surplus.
The provisos of 46 App. U.S.C. 877 relating to the Philippine Islands are omitted as obsolete because of the
independence of the Philippine Islands. See Proc. No.
2695, July 4, 1946, 60 Stat. 1352 (22 U.S.C. 1394 note).

Page 367
REFERENCES IN TEXT

Section 502(b) of the Covenant To Establish a Commonwealth of the Northern Mariana Islands in Political Union With the United States of America, referred
to in subsec. (b)(2), is contained in section 1 of Pub. L.
94–241, set out as a note under section 1801 of Title 48,
Territories and Insular Possessions.
AMENDMENTS
2008—Subsec. (b). Pub. L. 110–181 inserted ‘‘or’’ after
semicolon at end of par. (2), redesignated par. (4) as (3),
and struck out former par. (3) which read as follows:
‘‘Canton Island until the President declares by proclamation that the coastwise laws apply to Canton Island;
or’’.

§ 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
(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 certificate and endorsement.
(c) PENALTY.—Merchandise transported in violation of subsection (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.

and possessions thereof’’ are omitted because of the
definition of ‘‘United States’’ in chapter 1 of the revised
title. The words ‘‘to which the coastwise laws apply’’
are substituted for ‘‘embraced within the coastwise
laws’’ for consistency with section 55101. The words ‘‘is
wholly owned by citizens of the United States for purposes of engaging in the coastwise trade’’ are substituted for ‘‘owned by persons who are citizens of the
United States’’, and the words ‘‘has been issued a certificate of documentation with a coastwise endorsement under chapter 121’’ are substituted for ‘‘documented under the laws of the United States’’, for clarity and consistency in the revised title. The words ‘‘or
is exempt from documentation but would otherwise be
eligible for such a certificate and endorsement’’ are
added for consistency with section 12102 as revised by
the bill. The requirement that the vessel be built in the
United States is omitted from this section for consistency with the requirements for a coastwise endorsement, which also require that the vessel be built in the
United States except in certain circumstances. The
words ‘‘or vessels to which the privilege of engaging in
the coastwise trade is extended by section 808 of this
Appendix or section 22 of this Act’’ are omitted because
the relevant portion of section 808, and section 22, have
been repealed.
In subsection (c), the words ‘‘any person’’ are substituted for ‘‘any consignor, seller, owner, importer,
consignee, agent, or other person or persons’’ to eliminate unnecessary words.

§ 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 certificate and endorsement.
(b) PENALTY.—The penalty for violating subsection (a) is $300 for each passenger transported
and landed.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1633.)

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1632.)
HISTORICAL AND REVISION NOTES
Revised
Section
55102 ..........

§ 55104

TITLE 46—SHIPPING

Source (U.S. Code)

Source (Statutes at Large)

46 App.:883 (words
before 1st proviso,
11th proviso).

June 5, 1920, ch. 250, § 27
(words before 1st proviso,
11th proviso), 41 Stat. 999;
July 2, 1935, ch. 355, 49
Stat. 442; Pub. L. 95–410,
title II, § 213, Oct. 3, 1978,
92 Stat. 904; Pub. L.
101–329 [100–329], § 1(a)(1),
[§ 1(a)] June 7, 1988, 102
Stat. 588; Pub. L. 102–587,
title V, § 5501(b), Nov. 4,
1992, 106 Stat. 5085.

In subsection (a)(1), the words ‘‘(as defined in section
2101 of the [sic] title 46)’’ are omitted because the definition of ‘‘State’’ is being moved to chapter 1 and will
apply to the entire title.
In subsection (b), the words ‘‘may not provide any
part of the transportation of’’ are substituted for ‘‘No
. . . shall be transported’’ and ‘‘or for any part of the
transportation’’ because of the reorganization of the
language. The words ‘‘including Districts, Territories,

HISTORICAL AND REVISION NOTES
Revised
Section
55103 ..........

Source (U.S. Code)
46 App.:289.

Source (Statutes at Large)
June 19, 1886, ch. 421, § 8, 24
Stat. 81; Feb. 17, 1898, ch.
26, § 2, 30 Stat. 248.

This section is substituted for the source provision
for consistency with section 55102. See 19 C.F.R. §§ 4.80,
4.80a (2004).
In subsection (b), the penalty amount reflects the adjustment for inflation pursuant to the Federal Civil
Penalties Inflation Adjustment Act of 1990 (28 U.S.C.
2461 note). See 19 C.F.R. § 4.80(b)(2) (2004).

§ 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

§ 55105

TITLE 46—SHIPPING

Page 368

Federal Maritime 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).

and (2) to avoid repeating the substance of the definition twice in the section.
In subsection (b), the words ‘‘Notwithstanding any
other provision of law’’ and ‘‘directly or by way of a
foreign port’’ are omitted as unnecessary.

(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 shall notify the owner or operator of each vessel transporting passengers
under subsection (b) to terminate that transportation within 270 days after the Secretary’s
notification. Except as provided in subsection
(d), the authority to transport passengers
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 transporting passengers under subsection (b) to terminate that transportation
within 270 days after the Secretary’s notification. 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.

(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 corporation
wholly owned by citizens of the United States
under section 50501(a)–(c) of this title.
(2) STANDARDS FOR INCINERATION EQUIPMENT.—Incineration 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 examination 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 current condition of the hull and superstructure. The Coast Guard shall allow the
substitution of fittings, material, apparatus,
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 Homeland Security.

(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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1633.)

§ 55105. Transportation of hazardous waste

(c) EFFECTIVE DATE.—Subsection (a) is not effective until an appropriate vessel has been built
and documented under chapter 121 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1634;
Pub. L. 109–241, title IX, § 902(o), July 11, 2006, 120
Stat. 569; Pub. L. 110–181, div. C, title XXXV,
§ 3525(a)(4), (b), Jan. 28, 2008, 122 Stat. 601.)

HISTORICAL AND REVISION NOTES
Revised
Section
55104(a)(1) ..
55104(a)(2) ..
55104(b) ......
55104(c) ......
55104(d) ......
55104(e) ......

Source (U.S. Code)
46 App.:289c(b) (related to meaning
of certificate).
46 App.:289c(e).
46 App.:289c(a).
46 App.:289c(b).
46 App.:289c(c).
46 App.:289c(d).

Source (Statutes at Large)
Pub. L. 98–563, Oct. 30, 1984,
98 Stat. 2916.

In subsection (a), the definition of ‘‘certificate’’ is
added based on the language in 46 App. U.S.C. 289c(b)(1)

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

55105 ..........

46 App.:883 (2d–6th
sentences, last
sentence less provisos).

June 5, 1920, ch. 250, § 27
(2d–6th sentences, last
sentence less provisos), 41
Stat. 999; July 2, 1935, ch.
355, 49 Stat. 442; Pub. L.
97–389, title V, § 502, Dec.
29, 1982, 96 Stat. 1954.

In subsection (a), the words ‘‘after December 31, 1983’’
are omitted as obsolete. The words ‘‘transportation of

Page 369

§ 55108

TITLE 46—SHIPPING

merchandise under section 55102 of this title’’ are substituted for ‘‘For the purposes of this section’’ and
‘‘transportation by water of merchandise between
points in the United States’’ for consistency with section 55102.
In subsection (b)(2), the words ‘‘all current’’ are omitted as surplus.
Subsection (c) is substituted for ‘‘or after such time
as an appropriate vessel has been constructed and documented as a vessel of the United States’’ to improve
the organization.
REFERENCES IN TEXT
Section 1004(5) of the Resource Conservation and Recovery Act of 1976 (42 U.S.C. 6903(5)), referred to in subsec. (a), probably means section 1004(5) of the Solid
Waste Disposal Act (42 U.S.C. 6903(5)), as added by section 2 of the Resource Conservation and Recovery Act
of 1976, Pub. L. 94–580.
AMENDMENTS
2008—Pub. L. 110–181, § 3525(b), repealed Pub. L.
109–241, § 902(o). See 2006 Amendment note below.
Subsec. (b)(3). Pub. L. 110–181, § 3525(a)(4), incorporated the substance of the amendment by Pub. L.
109–241, § 902(o), into this section by substituting ‘‘Secretary of Homeland Security’’ for ‘‘Secretary of the department in which the Coast Guard is operating’’. See
2006 Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–241, § 902(o), which directed the
amendment of section 883 of the former Appendix to
this title from which this section was derived, was repealed by Pub. L. 110–181, § 3525(b). See 2008 Amendment
note for subsec. (b)(3) and Historical and Revision notes
above.

§ 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
transportation 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 continental 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
Secretary of State, that the government of the
nation of registry extends reciprocal privileges
to vessels of the United States.

gard to whether any such barge is under foreign registry or qualified to engage in the coastwise trade’’ are
omitted as surplus.

§ 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 shipping 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.
(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
Secretary of State, that the government of the
nation of registry extends reciprocal privileges
to vessels of the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1635.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

55107 ..........

46 App.:883 (6th proviso).

June 5, 1920, ch. 250, § 27 (6th
proviso), 41 Stat. 999; July
2, 1935, ch. 355, 49 Stat. 442;
Pub. L. 89–194, Sept. 21,
1965, 79 Stat. 823; Pub. L.
90–474, Aug. 11, 1968, 80
Stat. 700; Pub. L. 92–163,
§ 1, Nov. 23, 1971, 85 Stat.
486.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1635.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

55106 ..........

46 App.:883 (7th proviso).

June 5, 1920, ch. 250, § 27 (7th
proviso), 41 Stat. 999; July
2, 1935, ch. 355, 49 Stat. 442;
Pub. L. 92–163, § 1, Nov. 23,
1971, 85 Stat. 486.

In subsection (a), the words ‘‘non-self-propelled’’ are
omitted as unnecessary because of the definition of
‘‘barge’’ in chapter 1 of the revised title. The words
‘‘between points in the United States’’ and ‘‘without re-

In subsection (a), before paragraph (1), the words ‘‘by
vessels of the United States not qualified to engage in
the coastwise trade, or by vessels of foreign registry’’
are omitted as unnecessary. In paragraph (4), the words
‘‘by the Secretary of the Treasury’’ are omitted as unnecessary because the section referred to provides who
administers it.

§ 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 certificate of docu-

§ 55109

TITLE 46—SHIPPING

mentation 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 pontoons 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 Continental 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 installation of a platform jacket.
(c) PROCEDURES TO MAXIMIZE USE OF COASTQUALIFIED 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
(C) requesting that information on the
availability of coastwise qualified vessels be
submitted within 30 days after publication of
that notice; and
WISE

(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 avail-

Page 370

able 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1636.)
HISTORICAL AND REVISION NOTES
Revised
Section
55108 ..........

Source (U.S. Code)
46 App.:883 (last
proviso).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 27
(last proviso), 41 Stat. 999;
July 2, 1935, ch. 355, 49
Stat. 442; Pub. L. 101–329
[100–329], § 1(a)(2), June 7,
1988, 102 Stat. 588; Pub. L.
107–295, title II, § 213(c),
Nov. 25, 2002, 116 Stat.
2100; Pub. L. 108–293, title
IV, § 417, Aug. 9, 2004, 118
Stat. 1048.

In subsection (a), the words ‘‘coastwise endorsement
under chapter 121’’ are substituted for ‘‘coastwise endorsement under section 12106’’ because section 12106 is
being restated in various sections in revised chapter
121.
In subsection (b), the words ‘‘Section 55102 of this
title does not apply’’ are substituted for ‘‘shall not be
deemed transportation subject to this section’’ for consistency in the chapter.

§ 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
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) 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1637.)
HISTORICAL AND REVISION NOTES
Revised
Section
55109 ..........

Source (U.S. Code)
46 App.:292.

Source (Statutes at Large)
May 28, 1906, ch. 2566, § 1, 34
Stat. 204; Pub. L. 102–87,
title V, § 5501(a)(1), Nov. 4,
1992, 106 Stat. 5084.

Subsection (a)(1) is substituted for ‘‘(1) the vessel
meets the requirements of section 883 of this Appendix
and sections 802 and 803 of this Appendix for engaging
in the coastwise trade’’ for consistency with other sections of the revised title and to eliminate unnecessary
words. Section 883 requires (among other things) that
the vessel be owned by citizens of the United States,
and section 802 contains the requirements for certain
entities to qualify as citizens. Those requirements are
restated in section 50501 which applies to this section.

Page 371

§ 55110

TITLE 46—SHIPPING

Section 883 also requires that the vessel be built in and
documented under the laws of the United States. Those
latter two requirements are covered by subsection
(a)(3). Note that the build requirement is a requirement
for a coastwise endorsement.
In subsection (a)(3), the words ‘‘or is exempt from
documentation but would otherwise be eligible for such
a certificate and endorsement’’ are added for consistency with section 12102 as revised by the bill.
NONAPPLICABILITY TO CERTAIN VESSELS
Pub. L. 109–304, § 19, Oct. 6, 2006, 120 Stat. 1711, repealed section 1 of act May 28, 1906, ch. 2566, 34 Stat. 204
(section 292 of the former Appendix to this title, from
which this section was derived), except as may be applicable under section 5501(a)(2) of Pub. L. 102–587, set out
below.
Pub. L. 102–587, title V, § 5501(a)(2), (3), Nov. 4, 1992, 106
Stat. 5084, as amended by Pub. L. 109–304, § 17(i), Oct. 6,
2006, 120 Stat. 1709, provided that:
‘‘(2) The amendment made by paragraph (1) [amending section 292 of the former Appendix to this title,
from which this section was derived] does not apply
to—
‘‘(A)(i) the vessel STUYVESANT, official number
648540;
‘‘(ii) any other hopper dredging vessel documented
under chapter 121 of title 46, United States Code before the effective date of this Act [Nov. 4, 1992] and
chartered to Stuyvesant Dredging Company or to an
entity in which it has an ownership interest; however, this exception expires on December 3, 2022 or
when the vessel STUYVESANT ceases to be documented under chapter 121, whichever first occurs; and
‘‘(iii) any other non-hopper dredging vessel documented under chapter 121 and chartered to
Stuyvesant Dredging Company or to an entity in
which it has an ownership interest, as is necessary (a)
to fulfill dredging obligations under a specific contract, including any extension periods; or (b) as temporary replacement capacity for a vessel which has
become disabled but only for so long as the disability
shall last and until the vessel is in a position to fully
resume dredging operations; however, this exception
expires on December 8, 2022 or when the vessel
STUYVESANT ceases to be documented under chapter 121, whichever first occurs;
‘‘(B) the vessel COLUMBUS, official number 590658,
except that the vessel’s certificate of documentation
shall be endorsed to prohibit the vessel from engaging
in the transportation of merchandise (except valueless material), including dredge material of value, between places within the navigable waters of the
United States;
‘‘(C) a vessel that is engaged in dredged material
excavation if that excavation is not more than a minority of the total cost of the construction contract
in which the excavation is a single, integral part, and
the vessel is—
‘‘(i) built in the United States;
‘‘(ii) a non-self-propelled mechanical clamshell
dredging vessel; and
‘‘(iii) owned or chartered by a corporation that
had on file with the Secretary of Transportation,
on August 1, 1989, the certificate specified in section 27A of the Merchant Marine Act, 1920 (46 App.
U.S.C. 883–1) [now 46 U.S.C. 12118]; or
‘‘(D) any other documented vessel engaged in dredging and time chartered to an entity that, on August
1, 1989, was, and has continuously remained, the parent of a corporation that had on file with the Secretary of Transportation on August 1, 1989, a certificate specified in section 27A of the Merchant Marine
Act, 1920 (46 App. U.S.C. 883–1) [now 46 U.S.C. 12118] if
the vessel is—
‘‘(i) not engaged in a federally funded navigation
dredging project; and
‘‘(ii) engaged only in dredging associated with,
and integral to, accomplishment of that parent’s
regular business requirements.

‘‘(3) The exceptions provided by paragraph (2) shall
apply under section 55109 of title 46, United States
Code, to the same extent as under former section 1 of
the Act of May 28, 1906 [section 292 of the former Appendix to this title, from which this section was derived],
as amended by paragraph (1).’’
HISTORICAL AND REVISION NOTES
[H.R. Rep. No. 109–170, at 180 (2005) provided: Section
17(i) of the bill [H.R. 1442, enacted as Pub. L. 109–304]
amends section 5501(a) of the Oceans Act of 1992 (Public
Law 102–587, 106 Stat. 5084) [see note above] by adding
a new paragraph (3). The intent of this amendment is
to maintain the status quo under paragraph (2) of section 5501(a) of that Act, as it exists prior to the enactment of this codification legislation. Section 55109 of
title 46, United States Code, as contained in this bill, is
intended as a codification without substantive change
of section 1 of the Act of May 28, 1906, as amended (46
App. U.S.C. 292). Therefore, the exceptions from that
latter provision, which currently exist under such paragraph (2), are intended to continue to exist to the same
extent under new section 55109 of title 46. In addition,
if the original intent of such paragraph (2) was that the
restriction contained in the pre-1992 amended version of
that 1906 provision continues to apply to the vessels,
persons, and entities described in such paragraph (2),
then that outcome is intended to remain unchanged by
this legislation, despite the repeal by this legislation of
that 1906 provision. No expression as to the original intent of such paragraph (2) is intended by this legislation.]

§ 55110. Transportation of valueless material or
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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1637;
Pub. L. 110–181, div. C, title XXXV, § 3527(b)(1),
Jan. 28, 2008, 122 Stat. 602.)
HISTORICAL AND REVISION NOTES
Revised
Section
55110 ..........

Source (U.S. Code)
46 App.:883 (12th
proviso).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 27
(12th proviso), 41 Stat. 999;
Pub. L. 100–329, § 1(a),
June 7, 1988, 102 Stat. 588.

The words ‘‘or place’’ are omitted as surplus. The
words ‘‘as defined in the Presidential Proclamation of
March 10, 1983’’ are omitted because ‘‘exclusive economic zone’’ is defined in chapter 1 of the revised title.
AMENDMENTS
2008—Pub. L. 110–181 inserted ‘‘valueless material or’’
before ‘‘dredged material’’ in section catchline.
NONAPPLICABILITY OF PUB. L. 100–329 TO CERTAIN
VESSELS
Pub. L. 102–587, title V, § 5501(c), Nov. 4, 1992, 106 Stat.
5085, provided that: ‘‘The Act of June 7, 1988 (Public
Law 100–329; 102 Stat. 588) [amending sections 316 and
883 (from which this section was derived) of the former
Appendix to this title and enacting provisions set out
below], including the amendments made by that Act,
does not apply to a vessel—
‘‘(1) engaged in the transportation of valueless material or valueless dredged material; and
‘‘(2) owned or chartered by a corporation that had
on file with the Secretary of Transportation on Au-

§ 55111

TITLE 46—SHIPPING

gust 1, 1989, the certificate specified in section 27A of
the Merchant Marine Act, 1920 (46 App. U.S.C. 883–1)
[now 46 U.S.C. 12118].’’
TRANSPORTATION OF MUNICIPAL SEWAGE SLUDGE
Pub. L. 100–329, § 3, June 7, 1988, 102 Stat. 589, provided
that: ‘‘Notwithstanding the provisions of section 1 of
this Act [amending section 883 of the former Appendix
to this title, from which this section was derived], a
vessel may transport municipal sewage sludge if that
vessel, regardless of where it was built, is documented
under the laws of the United States and, on the date of
enactment of this Act [June 7, 1988], that vessel—
‘‘(1) is in use by a municipality for the transportation of sewage sludge; or
‘‘(2) is under contract with a municipality for the
transportation of sewage sludge.’’
VESSEL UNDER CONTRACT WITH MUNICIPALITY FOR
TRANSPORTATION OF SEWAGE SLUDGE: APPLICABILITY
OF PROVISIONS
Pub. L. 100–329, § 4, June 7, 1988, 102 Stat. 589, provided
that: ‘‘For purposes of the first paragraph of section
805(a) of the Merchant Marine Act, 1936 (46 App. U.S.C.
1223(a)) [now 46 U.S.C. 58101], a vessel described in section 3(2) of this Act [set out as a note above] is not a
vessel engaged in domestic intercoastal or coastwise
service, but the prohibitions in the second paragraph
apply to that vessel.’’
CERTIFICATE OF DOCUMENTATION TO VESSEL TRANSPORTING VALUELESS MATERIAL IN COASTWISE TRADE,
OR DREDGED MATERIAL, WHETHER OR NOT OF VALUE;
ISSUANCE, ENDORSEMENT, ETC.
Pub. L. 100–329, § 5, June 7, 1988, 102 Stat. 589, provided
that: ‘‘Notwithstanding the provisions of section 1 of
this Act [amending section 883 of the former Appendix
to this title, from which this section was derived], the
Secretary of the department in which the Coast Guard
is operating may issue a certificate of documentation
under section 12106 [see section 12112] of title 46, United
States Code, to a vessel that—
‘‘(1) is engaged in transporting only valueless material in the coastwise trade or transporting dredged
material, whether or not of value, (A) from a point or
place on the high seas within the Exclusive Economic
Zone as defined in the Presidential Proclamation of
March 10, 1983 [16 U.S.C. 1453 note], to a point or place
in the United States or to another point or place on
the high seas within such Exclusive Economic Zone
or (B) from a point or place within the United States
to a point or place on the high seas within such Exclusive Economic Zone;
‘‘(2) had a certificate of documentation issued under
section 12105 [see section 12111] of that title on October 1, 1987;
‘‘(3) had been sold foreign or placed under a foreign
registry before that certificate was issued; and
‘‘(4) was built in the United States;
except that such certificate of documentation shall be
endorsed to restrict the use of such vessel to the transportation of valueless material in the coastwise trade,
and to the transportation of dredged material, whether
or not of value, (i) from a point or place on the high
seas within such Exclusive Economic Zone to a point or
place in the United States or to another point or place
on the high seas within such Exclusive Economic Zone,
or (ii) from a point or place within the United States
to a point or place on the high seas within such 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

Page 372

(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
(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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1637.)
HISTORICAL AND REVISION NOTES
Revised
Section
55111 ..........

Source (U.S. Code)
46 App.:316(a), (b).

Source (Statutes at Large)
R.S. § 4370; June 11, 1940, ch.
324, 54 Stat. 304; Pub. L.
99–307, § 10, May 19, 1986,
100 Stat. 447; Pub. L.
100–329, § 2, June 7, 1988,
102 Stat. 589; Pub. L.
104–324,
title
XI,
§ 1115(b)(3), Oct. 19, 1996,
110 Stat. 3972.

In subsection (a), the words ‘‘or to do any part of such
towing’’ and ‘‘other than a vessel in distress’’ in the
source provision are made applicable to all the towing
described in subsection (b) for clarity and consistency.
In paragraph (1), the words ‘‘wholly owned by citizens
of the United States for purposes of engaging in the
coastwise trade’’ are substituted for ‘‘wholly owned by
a person who is a citizen of the United States within
the meaning of the laws respecting the documentation
of vessels’’ for consistency in this chapter.
Subsection (a)(2) is substituted for ‘‘having in force a
certificate of documentation issued under section 12106
of title 46’’ for consistency in this chapter and with section 12102(b) as revised by the bill.
In subsection (b)(1), the words ‘‘in the United States
to which the coastwise laws apply’’ are substituted for
‘‘in the United States, its Territories or possessions,
embraced within the coastwise laws of the United
States’’ because of the definition of ‘‘United States’’ in
chapter 1 of the revised title and because of section
55101 of the revised title.
In subsection (b)(3), the words ‘‘or place’’ are omitted
as surplus. The words ‘‘as defined in the Presidential

Page 373

§ 55114

TITLE 46—SHIPPING

Proclamation of March 10, 1983’’ are omitted because
‘‘exclusive economic zone’’ is defined in chapter 1 of the
revised title.
In subsection (c), the penalty amounts reflect the adjustment for inflation pursuant to the Federal Civil
Penalties Inflation Adjustment Act of 1990 (28 U.S.C.
2461 note). See 19 C.F.R. § 4.92 (2004). In paragraph (2),
the words ‘‘which sum may be recovered by way of libel
or suit’’ are omitted as surplus.
The text of 46 App. U.S.C. 316(b) is omitted as unnecessary because of the definition of ‘‘person’’ in section
1 of title 1.

In subsection (a), the words ‘‘(as that term is defined
in section 2101 of title 46, United States Code)’’ are
omitted because the definition of ‘‘vessel of the United
States’’ is being moved from section 2101 to chapter 1
of the revised title and will apply title-wide.

NONAPPLICABILITY OF PUB. L. 100–329 TO CERTAIN
VESSEL

§ 55113. Use of foreign documented oil spill response vessels

Amendment by Pub. L. 100–329 to section 316 of the
former Appendix to this title, from which this section
was derived, not applicable to a vessel engaged in the
transportation of valueless material or valueless
dredged material and owned or chartered by a corporation that had on file with Secretary of Transportation
on Aug. 1, 1989, the certificate specified in section 883–1
of the former Appendix to this title (now section 12118
of this title), see section 5501(c) of Pub. L. 102–587, set
out as a note under section 55110 of this title.

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, 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.

§ 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 assistance 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1638.)

HISTORICAL AND REVISION NOTES
Revised
Section
55112 ..........

Source (U.S. Code)
46 App.:316a.

Source (Statutes at Large)
Pub. L. 107–295, title IV,
§ 404, Nov. 25, 2002, 116
Stat. 2114.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1638.)
HISTORICAL AND REVISION NOTES
Revised
Section
55113 ..........

Source (U.S. Code)
46:12101 note.

Source (Statutes at Large)
Pub. L. 104–324, title XI,
§ 1117, Oct. 19, 1996, 110
Stat. 3973.

§ 55114. Unloading fish from foreign vessels
(a) PROHIBITIONS.—Except as otherwise provided by this section 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
products 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 consump-

§ 55115

TITLE 46—SHIPPING

tion 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 consumption, 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1639.)

Page 374
HISTORICAL AND REVISION NOTES

Revised
Section
55115 ..........

Source (U.S. Code)
46 App.:883 (10th
proviso).

The words ‘‘Section 55102 of this title does not apply
to’’ are substituted for ‘‘for the purposes of this section’’ and ‘‘shall be considered ship’s equipment and
not merchandise’’ for consistency in the chapter.

§ 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1640.)
HISTORICAL AND REVISION NOTES
Revised
Section
55116 ..........

Source (U.S. Code)
46 App.:883 (3d proviso).

HISTORICAL AND REVISION NOTES
Revised
Section
55114(a) ......

55114(b) ......

Source (U.S. Code)
46 App.:251(a) (1st
sentence).

55114(c)(1) ..
55114(c)(2) ..

46 App.:251(a) (last
sentence).
46 App.:251(b).
46 App.:251(c).
46 App.:251a.

55114(d) ......

48:1801 note (Covenant § 503(b)).

Source (Statutes at Large)
R.S. § 4311; Sept. 2, 1950, ch.
842, 64 Stat. 577; Pub. L.
87–220, § 1, Sept. 13, 1961, 75
Stat. 493; Pub. L. 96–61, § 2,
Aug. 15, 1979, 93 Stat. 407;
Pub. L. 96–594, title I,
§ 126(b), Dec. 24, 1980, 94
Stat. 3459; Pub. L. 100–239,
§ 8(a), Jan. 11, 1988, 101
Stat. 1783.

Pub. L. 87–220, § 2, Sept. 13,
1961, 75 Stat. 493.

In subsection (a), before paragraph (1), the words
‘‘whether documented as a cargo vessel or otherwise’’
are omitted as unnecessary.
In subsection (c)(2), the words ‘‘severally’’ and ‘‘in addition to any other penalty provided in law’’ are omitted as unnecessary. The last sentence is substituted for
46 App. U.S.C. 251a.
Subsection (d) is based on section 503(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).

§ 55115. Supplies on fish processing vessels

Source (Statutes at Large)
June 5, 1920, ch. 250, § 27
(10th proviso), 41 Stat. 999;
July 2, 1935, ch. 355, 49
Stat. 442; Pub. L. 97–389,
title V, § 504, Dec. 29, 1982,
96 Stat. 1956.

Source (Statutes at Large)
June 5, 1920, ch. 250, § 27 (3d
proviso), 41 Stat. 999; July
2, 1935, ch. 355, 49 Stat. 442;
Pub. L. 85–508, § 27(a), July
7, 1958, 72 Stat. 351; Pub.
L.
104–324,
title
VII,
§ 747(1), Oct. 19, 1996, 110
Stat. 3943.

§ 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 predecessor, 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1640.)

Section 55102 of this title does not apply to
supplies aboard a United States documented fish
processing vessel that are necessary and used for
processing or assembling fishery products
aboard such a vessel.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1640.)

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

55117 ..........

46 App.:883 (5th proviso).

June 5, 1920, ch. 250, § 27, as
added Apr. 11, 1935, ch. 58,
49 Stat. 154.

Page 375

§ 55121

TITLE 46—SHIPPING

§ 55118. Foreign railroads whose road enters by
ferry, tugboat, 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 transportation 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.

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

55119 ..........

46 App.:883 (4th proviso).

June 5, 1920, ch. 250, § 27 (4th
proviso), 41 Stat. 999;
Exec. Order No. 6166, June
10, 1933, § 12; July 2, 1935,
ch. 355, 49 Stat. 442; June
29, 1936, ch. 858, title II,
§ 204, title IX, § 904, 49
Stat. 1987, 2016; Reorg.
Plan No. 21 of 1950, eff.
May 24, 1950, § 204, 64 Stat.
1276; Pub. L. 97–31, § 12(49),
Aug. 6, 1981, 95 Stat. 157.

§ 55120. Transshipment of imported merchandise
intended for immediate exportation

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1640.)

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.

HISTORICAL AND REVISION NOTES

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1641.)

Revised
Section
55118 ..........

HISTORICAL AND REVISION NOTES
Source (U.S. Code)
46 App.:316(c).

Source (Statutes at Large)
R.S. § 4370(c); restated June
11, 1940, ch. 324, 54 Stat.
304.

The words ‘‘company or corporation’’ after ‘‘foreign
railroad’’ are omitted as unnecessary. The words ‘‘vessel not having a coastwise endorsement’’ are substituted for ‘‘such vessel’’ (referring to a vessel described in 46 App. U.S.C. 316(a)) for clarity and because
of the reorganization of the source material in the revised title. The words ‘‘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’’ are substituted for ‘‘without being subject to any other or different restrictions than those imposed by law on any
vessel of the United States entering ports of the United
States from ports in the same foreign country’’ to
eliminate unnecessary words. The words ‘‘Except as
otherwise authorized by this chapter’’ are substituted
for ‘‘except as authorized by section 883 of this Appendix’’ because of the reorganization of the source material in the revised title. The words ‘‘its Territories or
possessions’’ are omitted as unnecessary because of the
definition of ‘‘United States’’ in chapter 1 of the revised
title.

§ 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.

Revised
Section
55120 ..........

Source (U.S. Code)
46 App.:291.

Source (Statutes at Large)
Feb. 17, 1898, ch. 26, § 3, 30
Stat. 248.

§ 55121. Transportation of merchandise and passengers on Canadian vessels
(a) BETWEEN ROCHESTER AND ALEXANDRIA
BAY.—Until passenger 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 transportation 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1641.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

55121(a) ......

46 App.:289a.

55121(b) ......

46 App.:289b.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1640.)

Source (Statutes at Large)
Apr. 26, 1938, ch. 174, 52 Stat.
223; 1946 Reorg. Plan No. 3,
§§ 101–104, eff. July 16, 1946,
11 F.R. 7875, 60 Stat. 1097.
Pub. L. 87–77, June 30, 1961,
75 Stat. 196; Pub. L. 97–31,
§ 12(22), Aug. 6, 1981, 95
Stat. 155.

§ 55301

TITLE 46—SHIPPING

In subsection (a), the Secretary of Homeland Security
is substituted for the Commissioner of Customs because
the functions of the Customs Service and of the Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub.
L. 107–296, 116 Stat. 2178). The functions of the Commissioner of Customs previously were vested in the Secretary of the Treasury under section 321(c) of title 31.
For prior related transfers of functions, see the transfer
of functions note under 46 App. U.S.C. 289a.

CHAPTER 553—PASSENGER AND CARGO
PREFERENCES
SUBCHAPTER I—GENERAL
Sec.

55301.
55302.

Priority loading for coal.
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 Government.
SUBCHAPTER II—EXPORT TRANSPORTATION OF
AGRICULTURAL COMMODITIES
55311.
55312.
55313.

Findings and purposes.
Determining prevailing world market price.
Exemption of certain agricultural exports
from cargo preference provisions.
55314.
Transportation requirements for certain exports sponsored by the Secretary 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.
55332.
55333.
55334.
55335.
55336.

Definitions.
Designating American Great Lakes vessels.
Exemption from restriction on transporting
certain cargo.
Restrictions on operations.
Revocations and terminations of designations.
Civil penalty.

SUBCHAPTER I—GENERAL
§ 55301. Priority loading for coal
A vessel engaged in the coastwise transportation of coal produced 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1642.)
HISTORICAL AND REVISION NOTES
Revised
Section
55301 ..........

Source (U.S. Code)
46 App.:1121–1.

Source (Statutes at Large)
Pub. L. 96–387, § 5, Oct. 7,
1980, 94 Stat. 1546; Pub. L.
97–31, § 12(68), Aug. 6, 1981,
95 Stat. 159; Pub. L. 99–662,
title IX, § 947, Nov. 17,
1986, 100 Stat. 4200.

Page 376

§ 55302. Transportation of United States Government personnel
(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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1642.)
HISTORICAL AND REVISION NOTES
Revised
Section
55302 ..........

Source (U.S. Code)
46 App.:1241(a).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901(a), 49 Stat. 2015;
Aug. 26, 1954, ch. 936, 68
Stat. 832; Pub. L. 104–316,
title I, § 125, Oct. 19, 1996,
110 Stat. 3839.

In subsection (a), the words ‘‘by sea’’ are added for
clarity. The words ‘‘a territory or possession of the
United States’’ are substituted for ‘‘any of the possessions of the United States’’ for consistency in the revised title.
EXEMPTIONS
Functions authorized by Foreign Assistance Act of
1961, as amended, as exempt, see Ex. Ord. No. 11223, eff.
May 12, 1965, 30 F.R. 6635, set out under section 2393 of
Title 22, Foreign Relations and Intercourse.

§ 55303. Motor vehicles owned by United States
Government personnel
Notwithstanding any other law, privatelyowned American shipping services may be used
to transport motor vehicles owned by personnel
of the United States Government whenever
transportation of those vehicles at Government
expense is otherwise authorized by law.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1642.)
HISTORICAL AND REVISION NOTES
Revised
Section
55303 ..........

Source (U.S. Code)
46 App.:1241(c).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901(c), as added May
28, 1956, ch. 325, 70 Stat.
187.

§ 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 Transportation, after
investigation, certifies to the instrumentality
that vessels of the United States are not available in sufficient number, in sufficient tonnage

Page 377

capacity, on necessary schedules, or at reasonable rates.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1642.)
HISTORICAL AND REVISION NOTES
Revised
Section
55304 ..........

§ 55305

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1241–1.

Source (Statutes at Large)
Mar. 26, 1934, ch. 90, 48 Stat.
500; June 29, 1936, ch. 858,
§ 204, 49 Stat. 1987; Pub. L.
97–31, § 12(127), Aug. 6, 1981,
95 Stat. 165.

This section codifies the Joint Resolution of March
26, 1934 (ch. 90, 48 Stat. 500) (also commonly known as
Public Resolution 17). The codification of this provision
is not intended to change its status as a ‘‘Sense of Congress’’ provision in any way. The words ‘‘Reconstruction Finance Corporation or’’ are omitted as obsolete
because the Reconstruction Finance Corporation was
abolished by section 6 of Reorganization Plan No. 1 of
1957 (5 App. U.S.C.).

§ 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,
organization, or persons without provision for
reimbursement, any equipment, materials, or
commodities, or provides financing in any way
with Federal funds for the account of any persons unless otherwise exempted, within or without the United States, or advances funds or
credits, or guarantees the convertibility of foreign currencies in connection with the furnishing or obtaining 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 privatelyowned commercial vessels of the United States,
to the extent those vessels are available at fair
and reasonable rates for commercial 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 Congress (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.—
(1) Each department or agency that has responsibility for a program under this section
shall administer that program with respect to

this section under regulations and guidance issued by the Secretary of Transportation. The
Secretary, after consulting with the department or agency or organization or person involved, shall have the sole responsibility for
determining if a program is subject to the requirements of this section.
(2) The Secretary—
(A) shall conduct an annual review of the
administration of programs determined pursuant to paragraph (1) as subject to the requirements of this section;
(B) may direct agencies to require the
transportation on United States-flagged vessels of cargo shipments not otherwise subject to this section in equivalent amounts to
cargo determined to have been shipped on
foreign carriers in violation of this section;
(C) may impose on any person that violates this section, or a regulation prescribed
under this section, a civil penalty of not
more than $25,000 for each violation willfully
and knowingly committed, with each day of
a continuing violation following the date of
shipment to be a separate violation; and
(D) may take other measures as appropriate under the Federal Acquisition Regulations issued pursuant to section 25(c)(1) 1 of
the Office of Federal Procurement Policy
Act (41 U.S.C. 421(c)(1) 2 or contract with respect to each violation.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1642;
Pub. L. 110–417, div. C, title XXXV, § 3511(a), (b),
Oct. 14, 2008, 122 Stat. 4769.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

55305(a) ......

46 App.:1241(b)(1)
(2d, last provisos).

June 29, 1936, ch. 858, title
IX, § 901(b), as added Aug.
26, 1954, ch. 936, 68 Stat.
832; Pub. L. 87–266, Sept.
21, 1961, 75 Stat. 565; Pub.
L. 91–469, § 27, Oct. 21, 1970,
84 Stat. 1034; Pub. L. 97–31,
§ 12(126), Aug. 6, 1981, 95
Stat. 165.

55305(b) ......

46 App.:1241(b)(1)
(words before 1st
proviso).
46 App.:1241(b)(1)
(1st proviso).
46 App.:1241(b)(2).

55305(c) ......
55305(d) ......

In this section, the words ‘‘commercial vessels of the
United States’’ are substituted for ‘‘United States-flag
commercial vessels’’ for consistency in the revised
title.
In subsection (a), the words ‘‘the provisions of this
subsection shall not apply to cargoes carried in the vessels of the Panama Canal Company’’ are omitted as obsolete. The words ‘‘Nothing herein shall repeal or
otherwise modify the provisions of section 1241–1 of this
Appendix’’ are omitted as unnecessary. The last proviso
in 46 App. U.S.C. 1241(b)(1) is omitted as obsolete.
REFERENCES IN TEXT
Section 25(c)(1) of the Office of Federal Procurement
Policy Act, referred to in subsec. (d)(2)(D), was classified to section 421(c)(1) of former Title 41, Public Contracts, and was repealed and restated as section
1303(a)(1) of Title 41, Public Contracts, by Pub. L.
111–350, §§ 3, 7(b), Jan. 4, 2011, 124 Stat. 3677, 3855. For
1 See

References in Text note below.
in original. Probably should be followed by a second closing parenthesis.
2 So

§ 55311

TITLE 46—SHIPPING

disposition of sections of former Title 41, see Disposition Table preceding section 101 of Title 41.
AMENDMENTS
2008—Subsec. (b). Pub. L. 110–417, § 3511(a), substituted
‘‘foreign country, organization, or persons’’ for ‘‘foreign country’’, ‘‘commodities, or provides financing in
any way with Federal funds for the account of any persons unless otherwise exempted, within’’ for ‘‘commodities, within’’, and ‘‘furnishing or obtaining’’ for ‘‘furnishing’’.
Subsec. (d). Pub. L. 110–417, § 3511(b), reenacted heading without change and amended text generally. Prior
to amendment, text read as follows: ‘‘An agency having
responsibility 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 administration.’’
REGULATIONS
Pub. L. 110–417, div. C, title XXXV, § 3511(c), Oct. 14,
2008, 122 Stat. 4770, provided that: ‘‘The Secretary of
Transportation shall prescribe such rules as are necessary to carry out section 55305(d) of title 46, United
States Code. The Secretary may prescribe interim rules
necessary to carry out section 55305(d) of such title. An
interim rule prescribed under this subsection shall remain in effect until superseded by a final rule.’’

SUBCHAPTER
TATION OF
ITIES

II—EXPORT
TRANSPORAGRICULTURAL COMMOD-

§ 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 subsidization
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 agricultural 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 sponsored by the Secretary;
(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

Page 378

(6) provide for the appropriate disposition of
these findings and purposes.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1643.)
HISTORICAL AND REVISION NOTES
Revised
Section
55311 ..........

Source (U.S. Code)
46 App.:1241d.

Source (Statutes at Large)
Pub. L. 99–198, title XI,
§ 1141, Dec. 23, 1985, 99
Stat. 1490.

In subsection (a)(1), the word ‘‘security’’ is substituted for ‘‘national security objectives’’ to eliminate
unnecessary words.
In subsection (b), the words ‘‘Secretary of Agriculture’’ in paragraph (1) and ‘‘Secretary’’ in paragraph
(4) are substituted for ‘‘Department of Agriculture’’ because all functions of the Department are vested in the
Secretary under 7 U.S.C. 2202 and 6911 and Reorganization Plan No. 2 of 1953 (5 App. U.S.C.).

§ 55312. Determining prevailing world market
price
(a) AGRICULTURAL
UCTS.—The prevailing

COMMODITIES AND PRODworld market price for agricultural commodities or their products shall
be determined under this subchapter under procedures prescribed by the Secretary of Agriculture. The Secretary shall prescribe the procedures by regulation, with notice and opportunity 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.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1644.)
HISTORICAL AND REVISION NOTES
Revised
Section
55312 ..........

Source (U.S. Code)
46 App.:1241f(e).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901b(e), as added Pub.
L. 99–198, title XI, § 1142,
Dec. 23, 1985, 99 Stat. 1492.

§ 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 purpose 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);

Page 379

TITLE 46—SHIPPING

(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 commodities 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 products; 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 materials, goods, equipment, or services imported under the transaction.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1644.)
HISTORICAL AND REVISION NOTES
Revised
Section
55313 ..........

Source (U.S. Code)
46 App.:1241e.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901a, as added Pub. L.
99–198, title XI, § 1142, Dec.
23, 1985, 99 Stat. 1490.

§ 55314. Transportation requirements for certain
exports sponsored by the Secretary of Agriculture
(a) MINIMUM TONNAGE.—
(1) IN GENERAL.—In addition to the requirement under section 55305 of this title for the
transportation of a percentage of gross tonnage on commercial vessels of the United
States, 25 percent of the gross tonnage of agricultural commodities or their products specified in subsection (b) shall be transported each
fiscal year on commercial vessels of the
United States that—
(A) are necessary for national security;
and
(B) if more than 25 years old, were rebuilt
within the last 5 years and certified by the
Secretary of Transportation as having a useful life of at least 5 years after that rebuilding.
(2) FISCAL YEAR.—To provide for effective
and equitable administration of the cargo
preference laws, the fiscal year for the purpose
of compliance with minimum percentage requirements is the 12-month period beginning
October 1 of each year.
(b) APPLICABLE EXPORT ACTIVITY.—This section applies to export activity (except inspection or weighing activities, other activities carried out for health or safety, or technical assistance provided in the handling of commercial
transactions) of the Secretary of Agriculture or
the Commodity Credit Corporation—
(1) carried out under the Food for Peace Act
(7 U.S.C. 1691 et seq.);

§ 55314

(2) carried out under section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431);
(3) carried out under the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f–1);
(4) under which agricultural commodities or
their products are—
(A) donated through foreign governments
or private or public agencies, including
intergovernmental organizations; or
(B) sold for foreign currencies or for dollars on credit terms of more than 10 years;
(5) under which agricultural commodities or
their products are made available for emergency food relief at less than prevailing world
market prices;
(6) under which a cash grant is made directly
or through an intermediary to a foreign purchaser to enable the purchaser to obtain
United States agricultural commodities or
their products in an amount greater than the
difference between the prevailing world market price and the United States market price,
free along side vessel at a United States port;
or
(7) under which agricultural commodities
owned or controlled by or under loan from the
Corporation are exchanged or bartered for materials, goods, equipment, or services produced
in foreign countries, except export activities
described in section 55313(5) of this title.
(c) ADDITIONAL REQUIREMENTS.—
(1) APPLICATION OF SECTION 55305.—The requirement for transportation on vessels of the
United States under subsection (a) is subject
to the same terms and conditions as provided
in section 55305 of this title.
(2) ALLOCATION OF COMMODITIES.—Subject to
paragraph (3), in carrying out this section and
section 55305 of this title, the Corporation
shall take steps necessary and practicable, and
consistent with this section and section 55305,
without detriment to any port range to allocate, on the principle of lowest landed cost
without regard to the country of registry of
the vessel, 25 percent of the bagged, processed,
or fortified commodities provided under title
II of the Food for Peace Act (7 U.S.C. 1721 et
seq.).
(3) CALCULATIONS.—In carrying out paragraph (2), first there shall be calculated the allocation of 100 percent of the quantity to be
procured on an overall lowest landed cost
basis without regard to the country of registry
of the vessel, and then there shall be allocated
to the Great Lakes port range any cargoes for
which it has the lowest landed cost under that
calculation. The requirements for transportation on vessels of the United States under
this section and section 55305 of this title do
not apply to commodities allocated to the
Great Lakes port range under paragraph (2).
Commodities allocated to the Great Lakes
port range under paragraph (2) may not be reallocated or diverted to another port range to
meet those requirements to the extent that
the total tonnage of commodities to which
paragraph (2) applies that is furnished and
transported from the Great Lakes port range
is less than 25 percent of the total annual tonnage of the commodities furnished.

§ 55315

TITLE 46—SHIPPING

(4) AWARDING CONTRACTS.—In awarding a
contract for the transportation by vessel of
commodities from the Great Lakes port range
pursuant to an export activity referred to in
subsection (b), an agency—
(A) shall consider expressions of freight interest for any vessel from a vessel operator
who meets reasonable requirements for financial and operational integrity; and
(B) may not deny award of the contract to
a person based on the type of vessel on which
the transportation would be provided (including on the basis that the transportation
would not be provided on a liner vessel, as
that term is used in the Shipping Act of 1984,
as in effect on November 14, 1995), if the person otherwise satisfies reasonable requirements for financial and operational integrity.
(5) NONAVAILABILITY OF VESSELS.—A determination of nonavailability of vessels of the
United States resulting from the application
of this subsection may not reduce the gross
tonnage of commodities required by this section and section 55305 of this title to be transported on vessels of the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1645;
Pub. L. 110–246, title III, § 3001(b)(1)(A), (2)(Y),
June 18, 2008, 122 Stat. 1820, 1821; Pub. L. 110–417,
div. C, title XXXV, § 3511(d), Oct. 14, 2008, 122
Stat. 4770; Pub. L. 111–84, div. A, title X,
§ 1073(c)(15), Oct. 28, 2009, 123 Stat. 2475.)

is classified generally to chapter 41 (§ 1691 et seq.) of
Title 7, Agriculture. Title II of the Act is classified generally to subchapter III (§ 1721 et seq.) of chapter 41 of
Title 7. For complete classification of this Act to the
Code, see Short Title note set out under section 1691 of
Title 7 and Tables.
The Shipping Act of 1984, referred to in subsec.
(c)(4)(B), is Pub. L. 98–237, Mar. 20, 1984, 98 Stat. 67,
which was classified principally to chapter 36 (§ 1701 et
seq.) of the former Appendix to this title. The Act was
primarily repealed and restated in part A of subtitle IV
of this title by Pub. L. 109–304, §§ 7, 19, Oct. 6, 2006, 120
Stat. 1523, 1710. For complete classification of Pub. L.
98–237 to the Code, see Tables. For disposition of sections of the former Appendix to this title, see Disposition Table preceding section 101 of this title.
AMENDMENTS
2009—Subsec. (a). Pub. L. 111–84 amended directory
language of Pub. L. 110–417, § 3511(d). See 2008 Amendment notes below.
2008—Subsec. (a). Pub. L. 110–417, § 3511(d), as amended
by Pub. L. 111–84, substituted ‘‘fiscal’’ for ‘‘calendar’’ in
two places in text.
Subsec. (a)(2). Pub. L. 110–417, § 3511(d), as amended by
Pub. L. 111–84, which directed substitution of ‘‘FISCAL’’
for ‘‘CALENDAR’’ in heading, was executed by substituting ‘‘FISCAL’’ for ‘‘CALENDAR’’ to reflect the probable
intent of Congress.
Subsecs. (b)(1), (c)(2). Pub. L. 110–246 substituted
‘‘Food for Peace Act’’ for ‘‘Agricultural Trade Development and Assistance Act of 1954’’.
EFFECTIVE DATE OF 2009 AMENDMENT
Pub. L. 111–84, div. A, title X, § 1073(c), Oct. 28, 2009,
123 Stat. 2474, provided that the amendment made by
section 1073(c)(15) is effective as of Oct. 14, 2008, and as
if included in Pub. L. 110–417 as enacted.

HISTORICAL AND REVISION NOTES
Revised
Section
55314(a)(1) ..

Source (U.S. Code)
46 App.:1241f(a).

46 App.:1241o.

55314(a)(2) ..
55314(b) ......
55314(c) ......

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901b(a)–(d), as added
Pub. L. 99–198, title XI,
§ 1142, Dec. 23, 1985, 99
Stat. 1491; Pub. L. 101–624,
title XV, § 1525, Nov. 28,
1990, 104 Stat. 3667; Pub. L.
104–239, § 17, Oct. 8, 1996,
110 Stat. 3138; Pub. L.
108–136, title XXXV, § 3514,
Nov. 24, 2003, 117 Stat.
1792.
June 29, 1936, ch. 858, title
IX, § 901k, as added Pub.
L. 99–198, title XI, § 1142,
Dec. 23, 1985, 99 Stat. 1496.

46 App.:1241f(c)(2).
46 App.:1241f(b), (d).
46 App.:1241f(c)(1),
(3), (4).

In this section, the words ‘‘commercial vessels of the
United States’’ are substituted for ‘‘United States-flag
commercial vessels’’ for consistency in the revised
title.
In subsection (a)(1), before subparagraph (A), the text
of 46 App. U.S.C. 1241f(a)(2)(A) and (B) is omitted as obsolete. Subparagraphs (A) and (B) are substituted for 46
App. U.S.C. 1241o to improve the organization and to
eliminate unnecessary words.
In subsection (a)(2), the words ‘‘the 12-month period
beginning October 1 of each year’’ are substituted for
‘‘12 month periods commencing April 1, 1986, the 18month period beginning April 1, 2002, and the 12-month
period beginning October 1, 2003, and each year thereafter’’ to eliminate obsolete and unnecessary language.
In subsection (c)(4), before subparagraph (A), the
words ‘‘or instrumentality’’ are omitted as unnecessary
because of the definition of ‘‘agency’’ in chapter 1.
REFERENCES IN TEXT
The Food for Peace Act, referred to in subsecs. (b)(1)
and (c)(2), is act July 10, 1954, ch. 469, 68 Stat. 454, which

Page 380

EFFECTIVE DATE OF 2008 AMENDMENT
Amendment by Pub. L. 110–246 effective May 22, 2008,
see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.

§ 55315. Minimum tonnage
(a) DEFINITION.—In this section, the term
‘‘base period’’ means the 5-year period running
from the sixth through the second prior fiscal
years.
(b) REQUIREMENT.—For each fiscal year, the
minimum quantity of agricultural commodities
to be exported under programs subject to section 55314 of this title is the average of the tonnage exported under those programs during the
base period, discarding the high and low years.
(c) WAIVERS.—The President may waive the
minimum quantity for a fiscal year under this
section if the President determines and reports
to Congress, together with reasons, that the
quantity cannot be used effectively for the purposes of those programs or, based on a certification by the Secretary of Agriculture, that the
commodities are not available for reasons that
include the unavailability of funds.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1646.)
HISTORICAL AND REVISION NOTES
Revised
Section
55315 ..........

Source (U.S. Code)
46 App.:1241g.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901c, as added Pub. L.
99–198, title XI, § 1142, Dec.
23, 1985, 99 Stat. 1493.

In subsection (b), the words ‘‘For fiscal year 1986 and’’
are omitted as obsolete.

Page 381

§ 55316

TITLE 46—SHIPPING

§ 55316. Financing the transportation of agricultural commodities
(a) FINANCING OF INCREASED CHARGES.—The
Secretary of Transportation shall finance any
increased ocean freight charges incurred in any
fiscal year that result from the application of
section 55314 of this title.
(b) REIMBURSEMENT OF INCREASED CHARGES.—
(1) IN GENERAL.—The Secretary of Transportation shall reimburse the Secretary of Agriculture and the Commodity Credit Corporation for the amount by which, in any fiscal
year—
(A) the total cost of ocean freight and
ocean freight differential for which obligations are incurred by the Secretary of Agriculture and the Corporation on exports of
agricultural commodities and their products
under the agricultural export programs specified in section 55314(b) of this title; exceeds
(B) 20 percent of the value of the commodities and their products and the cost of the
ocean freight and ocean freight differential
on which obligations are incurred by the
Secretary of Agriculture and the Corporation during that fiscal year.
(2) COMMODITIES SHIPPED FROM INVENTORY.—
For purposes of this subsection, commodities
shipped from the inventory of the Corporation
shall be valued as provided in section 412(d) of
the Food for Peace Act (7 U.S.C. 1736f(d)).
(c) ISSUANCE AND PURCHASE OF OBLIGATIONS.—
(1) ISSUANCE.—To meet the expenses required
to be assumed under subsections (a) and (b),
the Secretary of Transportation shall issue obligations to the Secretary of the Treasury.
The Secretary of Transportation, with the approval of the Secretary of the Treasury, shall
prescribe the form, denomination, maturity,
and other terms (except the interest rate) of
the obligations. The Secretary of the Treasury
shall set the interest rate for the obligations,
considering the average market yield on outstanding marketable obligations of the United
States Government of comparable maturities
during the month before the obligations are issued.
(2) PURCHASE.—The Secretary of the Treasury shall purchase the obligations issued
under this subsection. To purchase the obligations, the Secretary of the Treasury may use
as a public debt transaction the proceeds from
the sale of securities issued under chapter 31
of title 31. The purposes for which securities
may be issued under that chapter are extended
to include the purchase of obligations under
this subsection. A redemption or purchase of
the obligations by the Secretary of the Treasury is a public debt transaction of the Government.
(d) SOURCE OF FUNDS FOR REIMBURSEMENT.—
Reimbursement of the Secretary of Transportation for costs incurred under this section shall
be made with appropriated funds rather than
through cancellation of notes.
(e) APPROPRIATIONS.—
(1) AUTHORIZATION.—Each fiscal year, there
is authorized to be appropriated an amount
sufficient to reimburse the Secretary of Trans-

portation for the costs incurred under this section, including administrative expenses and
the principal and interest due on obligations
issued to the Secretary of the Treasury.
(2) APPROPRIATION FOR ADMINISTRATIVE EXPENSES.—Each fiscal year, such amounts as
may be necessary are hereby appropriated to
pay interest and to liquidate debt on obligations issued to the Secretary of the Treasury
under this section.
(f) NOTIFICATION TO CONGRESS OF INSUFFICIENCY.—If the Secretary of Transportation is
unable to obtain the funds necessary to finance
the increased ocean freight charges resulting
from the requirements of subsections (a) and (b)
and section 55314(a) of this title, the Secretary
shall notify Congress within 10 working days of
the discovery of the insufficiency.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1647;
Pub. L. 110–246, title III, § 3001(b)(1)(A), (2)(Y),
June 18, 2008, 122 Stat. 1820, 1821.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

55316(a) ......

46 App.:1241h(a).

55316(b) ......
55316(c) ......
55316(d) ......

55316(e)(2) ..

46 App.:1241h(b).
46 App.:1241h(c).
46 App.:1241h(d)
(last sentence).
46 App.:1241h(d) (1st
sentence).
46 App.:1241h note.

55316(f) .......

46 App.:1241h(e).

55316(e)(1) ..

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901d, as added Pub. L.
99–198, title XI, § 1142, Dec.
23, 1985, 99 Stat. 1493.

Pub. L. 100–202, 101(a) [title
V (par. under heading
‘‘Ocean Freight Differential’’)], Dec. 22, 1987, 101
Stat. 1329, 1329–27.

In subsection (b)(2), the words ‘‘section 412(d) of the
Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1736f(d))’’ are substituted for ‘‘section
1733(b) of title 7’’ because the latter provision, as
amended in 1990, no longer contains provisions on valuation of commodities shipped from the inventory of the
Commodity Credit Corporation, and a provision substantially the same as former 7 U.S.C. 1733(b) is now at
7 U.S.C. 1736f(e).
In subsection (c)(1), the words ‘‘considering the current average market yield on outstanding marketable
obligations of the United States Government of comparable maturities during the month before the obligations are issued’’ are substituted for ‘‘taking into consideration the average market yield on outstanding
marketable obligations of the United States with remaining periods of maturity comparable to the average
maturities of such obligations during the month preceding the issuance of such obligations of the Secretary
of Transportation’’ to eliminate unnecessary words.
In subsection (c)(2), the words ‘‘after December 23,
1985’’ are omitted as obsolete.
In subsection (e)(1), the words ‘‘commencing with the
fiscal year beginning October 1, 1986’’ are omitted as
obsolete.
In subsection (f), the words ‘‘Notwithstanding the
provisions of this section’’ are omitted as unnecessary.
AMENDMENTS
2008—Subsec. (b)(2). Pub. L. 110–246 substituted ‘‘Food
for Peace Act’’ for ‘‘Agricultural Trade Development
and Assistance Act of 1954’’.
EFFECTIVE DATE OF 2008 AMENDMENT
Amendment by Pub. L. 110–246 effective May 22, 2008,
see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.

§ 55317

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

§ 55317. Termination of subchapter
This subchapter terminates 90 days after the
date on which a notification is made under section 55316(f) of this title, except for shipments of
agricultural commodities and their products
subject to contracts made before the end of that
90-day period, unless within that 90-day period
the Secretary of Transportation proclaims that
funds are available to finance increased freight
charges resulting from the requirements of sections 55314(a) and 55316(a) and (b) of this title. On
the termination of this subchapter under this
section—
(1) this subchapter does not exempt export
activities from, or subject export activities to,
the cargo preference laws; and
(2) the 50-percent requirement in section
55305 of this title remains in effect.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1648.)
HISTORICAL AND REVISION NOTES
Revised
Section
55317 ..........

Source (U.S. Code)
46 App.:1241j.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901f, as added Pub. L.
99–198, title XI, § 1142, Dec.
23, 1985, 99 Stat. 1494.

The words ‘‘except to the extent those activities are
exempt under section 1707a(b) of title 7’’ are omitted
because the provision referred to has been repealed.

§ 55318. Effect on other law
This subchapter does not affect chapter 5 of
title 5.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1648.)
HISTORICAL AND REVISION NOTES
Revised
Section
55318 ..........

Source (U.S. Code)
46 App.:1241p.

Source (Statutes at Large)
Pub. L. 99–198, title XI,
§ 1143, Dec. 23, 1985, 99
Stat. 1496.

The words ‘‘section 1707a(b)(8) of title 7’’ are omitted
because the provision referred to has been repealed.

SUBCHAPTER III—AMERICAN GREAT
LAKES VESSELS
§ 55331. Definitions
In this subchapter:
(1) AMERICAN GREAT LAKES VESSEL.—The
term ‘‘American Great Lakes vessel’’ means a
vessel so designated under section 55332 of this
title, but only during the period the designation is in effect.
(2) GREAT LAKES.—The term ‘‘Great Lakes’’
means Lake Superior, Lake Michigan, Lake
Huron, Lake Erie, Lake Ontario, the Saint
Lawrence River west of Saint Regis, New
York, and their connecting and tributary waters.
(3) GREAT LAKES SHIPPING SEASON.—The term
‘‘Great Lakes shipping season’’ means the period each year during which the Saint Lawrence Seaway is open for navigation by vessels, as declared by the Saint Lawrence Seaway Development Corporation.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1648.)

Page 382

Revised
Section
55331 ..........

Source (U.S. Code)
46 App.:1241v.

Source (Statutes at Large)
Pub. L. 101–624, title XV,
§ 1527, Nov. 28, 1990, 104
Stat. 3668.

In paragraph (1), the words ‘‘but only during the period the designation is in effect’’ are added for clarity.
In paragraph (3), the words ‘‘created by the Act of
May 13, 1954 (33 U.S.C. 981 et seq.)’’ are omitted as unnecessary.
The definition of ‘‘Secretary’’ in 46 App. U.S.C.
1241v(4) is omitted as unnecessary because the full title
of the Secretary of Transportation is used the first
time the Secretary is referred to in each section.

§ 55332. Designating American Great Lakes vessels
(a) DESIGNATIONS.—The Secretary of Transportation shall designate a vessel as an American
Great Lakes vessel if—
(1) an application for designation is submitted to the Secretary under regulations prescribed by the Secretary;
(2) the vessel is documented under the laws
of the United States;
(3) the vessel, on the effective date of the
designation, is—
(A) at least 1, but not more than 6, years
old; or
(B) at least 1, but not more than 11, years
old if the Secretary finds that suitable vessels are not available to provide the type of
service for which the vessel will be used
after the designation;
(4) the vessel has not previously been designated as an American Great Lakes vessel;
and
(5) the owner makes an agreement as provided under subsection (b).
(b) AGREEMENTS.—A vessel may be designated
as an American Great Lakes vessel only if the
person that will be the owner of the vessel at the
time of the designation makes an agreement
with the Secretary providing that if the Secretary determines that the vessel is necessary to
the defense of the United States, the United
States Government will have an exclusive right,
during the 120-day period following the date of a
revocation of the designation under section 55335
of this title, to purchase the vessel for a price
equal to the greater of—
(1) the approximate world market value of
the vessel; or
(2) the cost of the vessel to the owner less a
reasonable amount for depreciation.
(c) CERTAIN FOREIGN DOCUMENTATION AND SALE
NOT PROHIBITED.—Notwithstanding any other
law, if the Government does not exercise its
right of purchase under an agreement under subsection (b), the owner of the vessel is not prohibited from—
(1) documenting the vessel under the laws of
a foreign country; or
(2) selling the vessel to a person not a citizen
of the United States.
(d) REGULATIONS.—The Secretary shall prescribe regulations establishing requirements for
submitting applications under this section.

Page 383

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1649.)
HISTORICAL AND REVISION NOTES
Revised
Section
55332 ..........

Source (U.S. Code)
46 App.:1241r.

Source (Statutes at Large)
Pub. L. 101–624, title XV,
§ 1522, Nov. 28, 1990, 104
Stat. 3665.

In subsection (a), the words ‘‘for purposes of sections
1241q to 1241v of this Appendix’’ are omitted as unnecessary.
In subsection (c), before paragraph (1), the words
‘‘construction and purchase’’ before ‘‘agreement’’ are
omitted because the source provision for subsection (b)
does not say anything about construction.
In subsection (d), the words ‘‘Not later than 60 days
after November 28, 1990’’ are omitted as obsolete.

§ 55333. Exemption from restriction on transporting certain cargo
The 3-year documentation requirement of section 55305(a) of this title does not apply to a vessel designated as an American Great Lakes vessel during the period of its designation.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1649.)
HISTORICAL AND REVISION NOTES
Revised
Section
55333 ..........

Source (U.S. Code)
46 App.:1241q.

Pub. L. 101–624, title XV,
§ 1521, Nov. 28, 1990, 104
Stat. 3665.

§ 55334. Restrictions on operations
(a) PROHIBITIONS.—Except as provided in subsection (b), an American Great Lakes vessel
may not be used to—
(1) engage in trade—
(A) from a port in the United States that
is not located on the Great Lakes; or
(B) between ports in the United States;
(2) transport bulk cargo (as defined in section 40102 of this title) that is subject to section 55305 or 55314 of this title or section 2631
of title 10; or
(3) provide a service (except ocean freight
service) as—
(A) a contract carrier; or
(B) a common carrier on a fixed advertised
schedule offering frequent sailings at regular
intervals in the foreign trade of the United
States.
(b) OFF-SEASON EXCEPTION.—An American
Great Lakes vessel may be used for not more
than 90 days during any 12-month period to engage in trade prohibited by subsection (a)(1)(A),
except during the Great Lakes shipping season.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1649.)
HISTORICAL AND REVISION NOTES

55334 ..........

Source (U.S. Code)
46 App.:1241s.

§ 55335. Revocations and terminations of designations
(a) REVOCATIONS.—After notice and an opportunity for a hearing, the Secretary of Transportation may revoke a designation of a vessel as
an American Great Lakes vessel if the Secretary
finds that—
(1) the vessel does not meet a requirement
for the designation;
(2) the vessel has been operated in violation
of this subchapter; or
(3) the owner or operator of the vessel has
violated an agreement made under section
55332(b) of this title.
(b) TERMINATIONS.—On petition and a showing
of good cause by the owner of a vessel, the Secretary may terminate the designation of a vessel as an American Great Lakes vessel. The Secretary may impose conditions in a termination
order to prevent significant adverse effects on
other operators of vessels of the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1650.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

55335 ..........

46 App.:1241t(a), (c).

Pub. L. 101–624, title XV,
§ 1524(a), (c), Nov. 28, 1990,
104 Stat. 3667.

Source (Statutes at Large)

This section is substituted for the source provisions
to eliminate unnecessary words.

Revised
Section

§ 55501

TITLE 46—SHIPPING

Source (Statutes at Large)
Pub. L. 101–624, title XV,
§ 1523, Nov. 28, 1990, 104
Stat. 3666.

In subsection (a)(3), the words ‘‘construction and purchase’’ before ‘‘agreement’’ are omitted because the
source provision for section 55332(b) of the revised title
does not say anything about construction.
In subsection (b), the words ‘‘vessels of the United
States’’ are substituted for ‘‘United States-flag vessel’’
for consistency in the revised title.

§ 55336. Civil penalty
After notice and an opportunity for a hearing,
the Secretary of Transportation may impose a
civil penalty of not more than $1,000,000 on the
owner of an American Great Lakes vessel for
any act for which the designation may be revoked under section 55335 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1650.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

55336 ..........

46 App.:1241t(b).

Source (Statutes at Large)
Pub. L. 101–624, title XV,
§ 1524(b), Nov. 28, 1990, 104
Stat. 3667.

CHAPTER 555—MISCELLANEOUS
Sec.

55501.

Mobile trade fairs.

§ 55501. Mobile trade fairs
(a) IN GENERAL.—The Secretary of Commerce
shall encourage and promote the development
and use of mobile trade fairs designed to show
and sell the products of United States business
and agriculture at foreign ports and at other
commercial centers throughout the world where
the operators of the fairs use, insofar as practicable, vessels and aircraft of the United States
in transporting their exhibits.
(b) TECHNICAL AND FINANCIAL ASSISTANCE.—
When the Secretary determines that a mobile

§ 55601

TITLE 46—SHIPPING

trade fair provides an economical and effective
means of promoting export sales, the Secretary
may provide to the operator of the fair—
(1) technical assistance and support; and
(2) financial assistance to defray certain expenses incurred outside the United States, except the cost of transportation on foreign vessels and aircraft.
(c) USE OF FOREIGN CURRENCIES.—To carry out
this section, the President may use, in addition
to amounts appropriated to carry out trade promotion activities, foreign currencies owned by
or owed to the United States Government.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1650.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

55501 ..........

46 App.:1122b.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 212(B), as added Pub.
L. 87–839, § 1, Oct. 18, 1962,
76 Stat. 1074; Pub. L. 89–66,
July 7, 1965, 79 Stat. 211;
Pub. L. 90–434, July 27,
1968, 82 Stat. 449; Pub. L.
100–418, title X, § 10003(a),
Aug. 23, 1988, 102 Stat.
1572.

CHAPTER 556—SHORT SEA
TRANSPORTATION
Sec.

55601.
55602.
55603.
55604.
55605.

Short sea transportation program.
Cargo and shippers.
Interagency coordination.
Research on short sea transportation.
Short sea transportation defined.

§ 55601. Short sea transportation program
(a) ESTABLISHMENT.—The Secretary of Transportation shall establish a short sea transportation program and designate short sea transportation projects to be conducted under the
program to mitigate landside congestion.
(b) PROGRAM ELEMENTS.—The program shall
encourage the use of short sea transportation
through the development and expansion of—
(1) documented vessels;
(2) shipper utilization;
(3) port and landside infrastructure; and
(4) marine transportation strategies by
State and local governments.
(c) SHORT SEA TRANSPORTATION ROUTES.—The
Secretary shall designate short sea transportation routes as extensions of the surface transportation system to focus public and private efforts to use the waterways to relieve landside
congestion along coastal corridors. The Secretary may collect and disseminate data for the
designation and delineation of short sea transportation routes.
(d) PROJECT DESIGNATION.—The Secretary may
designate a project to be a short sea transportation project if the Secretary determines that
the project may—
(1) offer a waterborne alternative to available landside transportation services using
documented vessels; and
(2) provide transportation services for passengers or freight (or both) that may reduce
congestion on landside infrastructure using
documented vessels.

Page 384

(e) ELEMENTS OF PROGRAM.—For a short sea
transportation project designated under this
section, the Secretary may—
(1) promote the development of short sea
transportation services;
(2) coordinate, with ports, State departments of transportation, localities, other public agencies, and the private sector and on the
development of landside facilities and infrastructure to support short sea transportation
services; and
(3) develop performance measures for the
short sea transportation program.
(f) MULTISTATE, STATE AND REGIONAL
PORTATION PLANNING.—The Secretary,

TRANSin consultation with Federal entities and State and
local governments, shall develop strategies to
encourage the use of short sea transportation
for transportation of passengers and cargo. The
Secretary shall—
(1) assess the extent to which States and
local governments include short sea transportation and other marine transportation solutions in their transportation planning;
(2) encourage State departments of transportation to develop strategies, where appropriate, to incorporate short sea transportation, ferries, and other marine transportation solutions for regional and interstate
transport of freight and passengers in their
transportation planning; and
(3) encourage groups of States and multiState transportation entities to determine
how short sea transportation can address congestion, bottlenecks, and other interstate
transportation challenges.
(g) GRANTS.—
(1) IN GENERAL.—The Secretary shall establish and implement a short sea transportation
grant program to implement projects or components of a project designated under subsection (d).
(2) APPLICATIONS.—In order to receive a
grant under the program, an applicant shall—
(A) submit an application to the Secretary, in such form and manner, at such
time, and containing such information as
the Secretary may require; and
(B) demonstrate to the satisfaction of the
Secretary that—
(i) the project is financially viable;
(ii) the funds received will be spent efficiently and effectively; and
(iii) a market exists for the services of
the proposed project as evidenced by contracts or written statements of intent
from potential customers.
(3) NON-FEDERAL SHARE.—An applicant shall
provide at least 20 percent of the project costs
from non-Federal sources. In awarding grants
under the program, the Secretary shall give a
preference to those projects or components
that present the most financially viable transportation services and require the lowest percentage Federal share of the costs.

(Added Pub. L. 110–140, title XI, § 1121(a), Dec. 19,
2007, 121 Stat. 1760; amended Pub. L. 111–84, div.
C, title XXXV, § 3515, Oct. 28, 2009, 123 Stat. 2724.)
AMENDMENTS
2009—Subsec. (g). Pub. L. 111–84 added subsec. (g).

Page 385

TITLE 46—SHIPPING
EFFECTIVE DATE

(1) that is—
(A) contained in intermodal cargo containers and loaded by crane on the vessel; or
(B) loaded on the vessel by means of
wheeled technology; and

Chapter effective on the date that is 1 day after Dec.
19, 2007, see section 1601 of Pub. L. 110–140, set out as a
note under section 1824 of Title 2, The Congress.
REGULATIONS
Pub. L. 110–140, title XI, § 1121(c), Dec. 19, 2007, 121
Stat. 1762, provided that:
‘‘(1) INTERIM REGULATIONS.—Not later than 90 days
after the date of enactment of this Act [Dec. 19, 2007],
the Secretary of Transportation shall issue temporary
regulations to implement the program under this section. Subchapter II of chapter 5 of title 5, United States
Code, does not apply to a temporary regulation issued
under this paragraph or to an amendment to such a
temporary regulation.
‘‘(2) FINAL REGULATIONS.—Not later than October 1,
2008, the Secretary of Transportation shall issue final
regulations to implement the program under this section.’’

(2) that is—
(A) loaded at a port in the United States
and unloaded either at another port in the
United States or at a port in Canada located
in the Great Lakes Saint Lawrence Seaway
System; or
(B) loaded at a port in Canada located in
the Great Lakes Saint Lawrence Seaway
System and unloaded at a port in the United
States.
(Added Pub. L. 110–140, title XI, § 1121(a), Dec. 19,
2007, 121 Stat. 1761.)
PART E—CONTROL OF MERCHANT MARINE
CAPABILITIES

§ 55602. Cargo and shippers
(a) MEMORANDUMS OF AGREEMENT.—The Secretary of Transportation shall enter into memorandums of understanding with the heads of
other Federal entities to transport federally
owned or generated cargo using a short sea
transportation project designated under section
55601 when practical or available.
(b) SHORT-TERM INCENTIVES.—The Secretary
shall consult shippers and other participants in
transportation logistics and develop proposals
for short-term incentives to encourage the use
of short sea transportation.
(Added Pub. L. 110–140, title XI, § 1121(a), Dec. 19,
2007, 121 Stat. 1761.)
§ 55603. Interagency coordination
The Secretary of Transportation shall establish a board to identify and seek solutions to impediments hindering effective use of short sea
transportation. The board shall include representatives of the Environmental Protection
Agency and other Federal, State, and local governmental entities and private sector entities.
(Added Pub. L. 110–140, title XI, § 1121(a), Dec. 19,
2007, 121 Stat. 1761.)
§ 55604. Research on short sea transportation
The Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, may conduct research on short sea transportation, regarding—
(1) the environmental and transportation
benefits to be derived from short sea transportation alternatives for other forms of transportation;
(2) technology, vessel design, and other improvements that would reduce emissions, increase fuel economy, and lower costs of short
sea transportation and increase the efficiency
of intermodal transfers; and
(3) solutions to impediments to short sea
transportation projects designated under section 55601.
(Added Pub. L. 110–140, title XI, § 1121(a), Dec. 19,
2007, 121 Stat. 1761.)
§ 55605. Short sea transportation defined
In this chapter, the term ‘‘short sea transportation’’ means the carriage by vessel of cargo—

§ 56101

CHAPTER 561—RESTRICTIONS ON
TRANSFERS
Sec.

56101.
56102.
56103.
56104.
56105.

Approval required to transfer vessel to noncitizen.
Additional controls during war or national
emergency.
Conditional approvals.
Penalty for false statements.
Forfeiture procedure.

§ 56101. Approval required to transfer vessel to
noncitizen
(a) RESTRICTIONS.—
(1) IN GENERAL.—Except as otherwise provided in this section, section 12119 of this title,
or section 611 of the Merchant Marine Act,
1936, a person may not, without the approval
of the Secretary of Transportation—
(A) sell, lease, charter, deliver, or in any
other manner transfer, or agree to sell,
lease, charter, deliver, or in any other manner transfer, to a person not a citizen of the
United States, an interest in or control of—
(i) a documented vessel owned by a citizen of the United States; or
(ii) a vessel last documented under the
laws of the United States; or
(B) place under foreign registry, or operate
under the authority of a foreign country, a
documented vessel or a vessel last documented under the laws of the United States.
(2) EXCEPTIONS.—Paragraph (1)(A) does not
apply to a vessel that has been operated only
for pleasure or only as a fishing vessel, fish
processing vessel, or fish tender vessel (as defined in section 2101 of this title).
(b) APPROVAL BEFORE DOCUMENTATION.—To
promote financing with respect to a vessel to be
documented under chapter 121 of this title, the
Secretary may grant approval under subsection
(a) before the vessel is documented.
(c) EXCEPTIONS.—Notwithstanding any other
provision of this subtitle, the Merchant Marine
Act, 1936, or any contract with the Secretary
made under this subtitle or that Act, a person
may place a vessel under foreign registry without the approval of the Secretary if—

§ 56102

TITLE 46—SHIPPING

(1)(A) the Secretary, in conjunction with the
Secretary of Defense, determines that at least
one replacement vessel of equal or greater
military capability and of a capacity that is
equivalent or greater, as measured by deadweight tons, gross tons, or container equivalent units, as appropriate, is documented
under chapter 121 of this title by the owner of
the vessel placed under foreign registry; and
(B) the replacement vessel is not more than
10 years old on the date of that documentation; or
(2) an operating agreement covering the vessel under chapter 531 of this title has expired.
(d) STATUS OF PROHIBITED TRANSACTION.—A
charter, sale, or transfer of a vessel, or of an interest in or control of a vessel, in violation of
this section is void.
(e) PENALTIES.—
(1) CRIMINAL PENALTY.—A person that knowingly sells, charters, or transfers a vessel, or
an interest in or control of a vessel, in violation of this section shall be fined under title
18, imprisoned for not more than 5 years, or
both.
(2) CIVIL PENALTY.—A person that sells, charters, or transfers a vessel, or an interest in or
control of a vessel, in violation of this section
is liable to the United States Government for
a civil penalty of not more than $10,000 for
each violation.
(3) FORFEITURE.—A documented vessel may
be seized by and forfeited to the Government
if, in violation of this section, a person—
(A) knowingly sells, charters, or transfers
the vessel or an interest in or control of the
vessel; or
(B) places the vessel under foreign registry
or operates the vessel under the authority of
a foreign country.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1651.)
HISTORICAL AND REVISION NOTES
Revised
Section
56101(a) ......

Source (U.S. Code)
46 App.:808(c).

46 App.:808a.
56101(b) ......

46 App.:808(f)

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 9(c),
(d), 39 Stat. 730; July 15,
1918, ch. 152, § 3, 40 Stat.
900; June 5, 1920, ch. 250,
§ 18, 41 Stat. 994; Exec.
Order No. 6166, § 12, eff.
June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; June 23, 1938,
ch. 600, § 42, 52 Stat. 964;
Pub. L. 89–346, § 1, Nov. 8,
1965, 79 Stat. 1305; Pub. L.
97–31, § 12(26), Aug. 6, 1981,
95 Stat. 155; Pub. L.
100–710, title I, § 104(b)(3),
Nov. 23, 1988, 102 Stat.
4750; Pub. L. 101–225, title
III, § 304(a), Dec. 12, 1989,
103 Stat. 1924; Pub. L.
104–324, title XI, [§]1113(c),
(e), Oct. 19, 1996, 110 Stat.
3970, 3971; Pub. L. 107–295,
title II, § 205(d), Nov. 25,
2002, 116 Stat. 2096.
Pub. L. 98–454, title III, § 302,
Oct. 5, 1984, 98 Stat. 1734.
Sept. 7, 1916, ch. 451, § 9(f), as
added Pub. L. 104–324, title
XI, § 1136(b), Oct. 19, 1996,
110 Stat. 3987; Pub. L.
108–136,
title
XXXV,
§ 3532(a)(1), Nov. 24, 2003,
117 Stat. 1817.

Page 386

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section

Source (U.S. Code)

56101(c) ......

46 App.:808(e)

56101(d) ......
56101(e) ......

46 App.:808(d)(1).
46 App.:808(d)(2)–(4).

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 9(e),
as added Pub. L. 104–239,
§ 6, Oct. 8, 1996, 110 Stat.
3132; Pub. L. 108–136, title
XXXV, § 3532(a)(2), Nov. 24,
2003, 117 Stat. 1817.

In subsection (a), the text of 46 App. U.S.C. 808a is
omitted as unnecessary. In paragraph (1), the words
‘‘owned by a citizen of the United States’’ are omitted
as unnecessary because ownership by a citizen is a requirement for documentation. See section 12103 as revised by the bill.
In subsection (c), before paragraph (1), the words
‘‘Notwithstanding any other provision of this subtitle,
the Merchant Marine Act, 1936, or any contract with
the Secretary made under this subtitle or that Act’’ are
substituted for ‘‘Notwithstanding subsection (c)(2) of
this section, the Merchant Marine Act, 1936 [46 App.
U.S.C. 1101 et seq.], or any contract entered into with
the Secretary of Transportation under that Act’’ because the Merchant Marine Act, 1936, is restated principally in this subtitle, but other provisions of that Act
are being neither restated nor repealed.
REFERENCES IN TEXT
The Merchant Marine Act, 1936, referred to in subsecs. (a)(1), (c), is act June 29, 1936, ch. 858, 49 Stat. 1985,
which enacted provisions set out as notes under section
53101 of this title. For complete classification of this
Act to the Code, see Short Title of 1936 Amendment
note set out under section 101 of this title and Tables.

§ 56102. Additional controls during war or national emergency
(a) IN GENERAL.—During war, or a national
emergency declared by Presidential proclamation, a person may not, without the approval of
the Secretary of Transportation—
(1) place under foreign registry a vessel
owned in whole or in part by a citizen of the
United States or a corporation incorporated
under the laws of the United States or of a
State;
(2) sell, mortgage, lease, charter, deliver, or
in any other manner transfer, or agree to sell,
mortgage, lease, charter, deliver, or in any
other manner transfer, to a person not a citizen of the United States—
(A) a vessel owned as described in paragraph (1), or an interest therein;
(B) a vessel documented under the laws of
the United States, or an interest therein; or
(C) a facility for building or repairing vessels, or an interest therein;
(3) issue, assign, or transfer to a person not
a citizen of the United States an instrument of
indebtedness secured by a mortgage of a vessel
to a trustee, by an assignment of an owner’s
interest in a vessel under construction to a
trustee, or by a mortgage of a facility for
building or repairing vessels to a trustee, unless the trustee or a substitute trustee is approved by the Secretary under subsection (b);
(4) enter into an agreement or understanding
to construct a vessel in the United States for,
or to be delivered to, a person not a citizen of
the United States without expressly stipulating that construction will not begin until after
the war or national emergency has ended;

Page 387

§ 56103

TITLE 46—SHIPPING

(5) enter into an agreement or understanding
whereby there is vested in, or for the benefit
of, a person not a citizen of the United States
the controlling interest in a corporation that
is incorporated under the laws of the United
States or a State and that owns a vessel or facility for building or repairing vessels; or
(6) cause or procure a vessel, constructed in
whole or in part in the United States and
never cleared for a foreign port, to depart from
a port of the United States before it has been
documented under the laws of the United
States.
(b) TRUSTEES.—
(1) APPROVAL.—The Secretary shall approve
a trustee or substitute trustee under subsection (a)(3) if and only if the trustee is a
bank or trust company that—
(A) is organized as a corporation, and is
doing business, under the laws of the United
States or a State;
(B) is authorized under those laws to exercise corporate trust powers;
(C) is a citizen of the United States;
(D) is subject to supervision or examination by Federal or State authority; and
(E) has a combined capital and surplus (as
set forth in its most recent published report
of condition) of at least $3,000,000.
(2) DISAPPROVAL.—If a trustee or substitute
trustee ceases to meet the conditions in paragraph (1), the Secretary shall disapprove the
trustee or substitute trustee. After the disapproval, the restrictions on transfer or assignment without the Secretary’s approval in
subsection (a)(3) apply.
(3) OPERATION OF VESSEL.—During a period
when subsection (a) applies, a trustee referred
to in subsection (a)(3), even though approved
as a trustee by the Secretary, may not operate
the vessel under the mortgage or assignment
without the Secretary’s approval.
(c) STATUS OF PROHIBITED TRANSACTION.—A
transaction in violation of this section is void.
(d) RECOVERY OF CONSIDERATION.—
(1) IN GENERAL.—A person that deposited or
paid consideration in connection with a transaction prohibited by this section may recover
the consideration after tender of the vessel, facility, stock, or other security, or interest
therein, to the person entitled to it, or the forfeiture thereof to the United States Government.
(2) EXCEPTION.—Paragraph (1) does not apply
if the person in whose interest the consideration was deposited, or to whom it was paid,
entered into the transaction in the belief that
the person depositing or paying the consideration was a citizen of the United States.
(e) PENALTIES.—
(1) CRIMINAL PENALTY.—A person that violates, or attempts or conspires to violate, this
section shall be fined under title 18, imprisoned for not more than 5 years, or both.
(2) FORFEITURE.—The following shall be forfeited to the Government:
(A) A vessel, a facility for building or repairing vessels, or an interest in a vessel or
such a facility, that is sold, mortgaged,

leased, chartered, delivered, transferred, or
documented, or agreed to be sold, mortgaged, leased, chartered, delivered, transferred, or documented, in violation of this
section.
(B) Stock and other securities sold or
transferred, or agreed to be sold or transferred, in violation of this section.
(C) A vessel departing in violation of subsection (a)(6).
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1652.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

56102(a) ......

46 App.:835(a)–(c)
(less provisos),
(d)–(f).

56102(b) ......

46 App.:835(c) (provisos).
46 App.:835 (2d par.
after cl. (f), last
par. words before
9th comma).
46 App.:835 (last par.
words after 9th
comma).
46 App.:835 (1st, 3d
pars. after cl. (f)).

56102(c) ......

56102(d) ......
56102(e) ......

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 37, as
added July 15, 1918, ch.
152, § 4, 40 Stat. 901; Exec.
Order No. 6166, § 12, eff.
June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 89–346,
§ 2, Nov. 8, 1965, 79 Stat.
1306; Pub. L. 97–31, § 12(30),
Aug. 6, 1981, 95 Stat. 156.

In this section, the words ‘‘facility for building or repairing vessels’’ are substituted for ‘‘shipyard, dry
dock, shipbuilding or ship-repairing plant or facility’’
(or similar language) to eliminate unnecessary words.
In subsection (a)(1), the words ‘‘transfer to’’ and ‘‘or
flag’’ are omitted as surplus. The words ‘‘Territory,
District, or possession thereof’’ are omitted as unnecessary because of the definition of ‘‘State’’ in chapter 1
of the revised title.
In subsection (a)(3), the words ‘‘instrument of indebtedness’’ are substituted for ‘‘bond, note, or other evidence of indebtedness’’ to eliminate unnecessary words.
The words ‘‘right, title, or’’ are omitted as unnecessary.
In subsection (a)(5), the words ‘‘or the majority of the
voting power’’ are omitted as covered by ‘‘controlling
interest’’.
In subsection (b)(1), before subparagraph (A), the
words ‘‘and only if’’ are added for clarity because the
Secretary is required to disapprove a trustee that
ceases to meet the specified conditions.
Subsections (c) and (d) are substituted for the source
provisions to eliminate unnecessary words.
In subsection (e)(1), the words ‘‘guilty of a misdemeanor’’ are omitted, and the words ‘‘fined under
title 18’’ are substituted for ‘‘punishable by a fine of
not more than $5000’’, because of chapter 227 of title 18.

§ 56103. Conditional approvals
(a) IN GENERAL.—In approving an act or transaction under section 56101 or 56102 of this title,
the Secretary of Transportation may do so absolutely or upon conditions the Secretary considers advisable. The Secretary shall state the conditions in the notice of approval.
(b) VIOLATIONS.—A violation of a condition of
approval is subject to the same penalties as a
violation resulting from an act done without the
required approval. The violation occurs at the
time the condition is violated.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1654.)

§ 56104

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section

Source (U.S. Code)

56103 ..........

46 App.:839 (1st
par.).

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 41 (1st
par.), as added July 15,
1918, ch. 152, § 4, 40 Stat.
902; Exec. Order No. 6166,
June 10, 1933, § 12; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(32), Aug. 6, 1981, 95
Stat. 156.

This section is substituted for the source provision to
eliminate unnecessary words.

§ 56104. Penalty for false statements
A person that knowingly makes a false statement of a material fact to the Secretary of
Transportation or another officer, employee, or
agent of the Department of Transportation, to
obtain the Secretary’s approval under section
56101 or 56102 of this title, shall be fined under
title 18, imprisoned for not more than 5 years, or
both.

Page 388

Sec.

56302.
56303.
56304.
56305.
56306.
56307.

Charter terms.
Compensation.
Disputed compensation.
Vessel encumbrances.
Use and transfer of vessels.
Return of vessels.

§ 56301. General authority
During a national emergency declared by
Presidential proclamation, or a period for which
the President has proclaimed that the security
of the national defense makes it advisable, the
Secretary of Transportation may requisition or
purchase, or requisition or charter the use of, a
vessel owned by citizens of the United States, a
documented vessel, or a vessel under construction in the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1654.)
HISTORICAL AND REVISION NOTES
Revised
Section
56301 ..........

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1654.)

Source (U.S. Code)
46 App.:1242(a) (1st,
2d sentences).

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 902(a) (1st, 2d sentences), 49 Stat. 2015; Pub.
L. 97–31, § 12(131), Aug. 6,
1981, 95 Stat. 165; Pub. L.
100–710, title I, § 104(c),
Nov. 23, 1988, 102 Stat.
4750.

Sept. 7, 1916, ch. 451, § 41
(last par.), as added July
15, 1918, ch. 152, § 4, 40
Stat. 903; Exec. Order No.
6166, June 10, 1933, § 12;
June 29, 1936, ch. 858, title
II, § 204, title IX, § 904, 49
Stat. 1987, 2016; Pub. L.
97–31, § 12(32), Aug. 6, 1981,
95 Stat. 156.

The words ‘‘or other watercraft’’ are omitted because
of the definition of ‘‘vessel’’ in chapter 1 of the revised
title. The words ‘‘The termination of any emergency so
declared shall be announced by a further proclamation
by the President’’ are omitted as superseded by the National Emergencies Act (50 U.S.C. 1601 et seq.).

The words ‘‘guilty of a misdemeanor’’ are omitted,
and the words ‘‘fined under title 18’’ are substituted for
‘‘subject to a fine of not more than $5000’’, because of
chapter 227 of title 18.

(a) IN GENERAL.—If a vessel is requisitioned for
use but not ownership under this chapter, the
Secretary of Transportation, at the time of requisition or as soon thereafter as the situation allows, shall offer the person entitled to possession of the vessel a charter containing—
(1) the terms the Secretary believes should
govern the relationship between the United
States Government and the person; and
(2) the rate of hire the Secretary considers
just compensation for the use of the vessel and
the services required under the charter.

56104 ..........

46 App.:839 (last
par.).

§ 56105. Forfeiture procedure
(a) IN GENERAL.—A forfeiture under this chapter may be enforced in the same way as a forfeiture under the laws on the collection of duties. However, such a forfeiture may be remitted
without seizure of the vessel.
(b) PRIOR CONVICTIONS.—In a proceeding under
this chapter to enforce a forfeiture, a prior
criminal conviction of a person for a violation of
this chapter with respect to the subject matter
of the forfeiture is prima facie evidence of the
violation against the person convicted.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1654.)

§ 56302. Charter terms

(b) REFUSAL TO ACCEPT.—If the person does
not accept the charter and rate of hire, the parties shall proceed as provided in section 56304 of
this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1654.)
HISTORICAL AND REVISION NOTES

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

56105(a) ......

46 App.:836.

56105(b) ......

46 App.:837.

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 38, as
added July 15, 1918, ch.
152, § 4, 40 Stat. 902; Pub.
L.
101–225,
title
III,
§ 304(b), Dec. 12, 1989, 103
Stat. 1924.
Sept. 7, 1916, ch. 451, § 39, as
added July 15, 1918, ch.
152, § 4, 40 Stat. 902.

CHAPTER 563—EMERGENCY ACQUISITION
OF VESSELS
Sec.

56301.

General authority.

Revised
Section
56302 ..........

Source (U.S. Code)
46 App.:1242(c) (1st
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 902(c) (1st sentence);
as added Aug. 7, 1939, ch.
555, § 3, 53 Stat. 1255; Pub.
L. 97–31, § 12(131), Aug. 6,
1981, 95 Stat. 165.

In subsection (a), the words ‘‘requisitioned for use but
not ownership under this chapter’’ are substituted for
‘‘taken and used under authority of this section, but
the ownership thereof is not required by the United
States’’ to eliminate unnecessary words. The word
‘‘requisition’’ is substituted for ‘‘taking’’, and the word
‘‘vessel’’ is substituted for ‘‘such property’’, for consistency.

Page 389

Subsection (b) is added because the provisions about
disputed compensation, for both charter use and other
takings, are consolidated in section 56304 of the revised
title to avoid repetition.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1655.)
HISTORICAL AND REVISION NOTES
Revised
Section

§ 56303. Compensation
(a) IN GENERAL.—As soon as practicable, the
Secretary of Transportation shall determine and
pay just compensation for a vessel requisitioned
under this chapter.
(b) FACTORS NOT AFFECTING VALUE.—The
value of a vessel may not be considered enhanced by the circumstances requiring its requisition. Consequential damages arising from
the requisition may not be paid.
(c) EFFECT OF CONSTRUCTION-DIFFERENTIAL
SUBSIDY.—
(1) IF PAID.—If a construction-differential
subsidy has been paid for the vessel, the value
of the vessel at the time of requisition shall be
determined under section 802 of the Merchant
Marine Act, 1936.
(2) IF NOT PAID.—If a construction-differential subsidy has not been paid for the vessel,
the value of any national defense features previously paid for by the United States Government shall be excluded.
(d) LOSS OR DAMAGE DURING CHARTER.—If a
vessel is lost or damaged by a risk assumed by
the Government under the charter, but a valuation for the vessel or a means of compensation
has not been agreed to, the Secretary shall pay
just compensation for the loss or damage, to the
extent the person is not reimbursed through insurance.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1655.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

56303(a) ......

46 App.:1242(a) (3d
sentence words
before 2d comma),
(d) (1st par. words
before 2d comma).

June 29, 1936, ch. 858, title
IX, § 902(a) (3d, last sentences), (b), (d) (1st par.
words before 2d comma),
49 Stat. 2015, 2016; Aug. 7,
1939, ch. 555, § 3, 53 Stat.
1255; Aug. 3, 1956, ch. 929,
§ 3, 70 Stat. 985; Pub. L.
97–31, § 12(131), Aug. 6, 1981,
95 Stat. 165.

56303(b) ......

46 App.:1242(a) (3d
sentence words
after 2d comma,
last sentence).
46 App.:1242(b).
46 App.:1242(c) (last
sentence).

56303(c) ......
56303(d) ......

§ 56305

TITLE 46—SHIPPING

REFERENCES IN TEXT
Section 802 of the Merchant Marine Act, 1936, referred
to in subsec. (c)(1), is section 802 of act June 29, 1936, ch.
858, 49 Stat. 1985, which is set out as a note under section 53101 of this title.

§ 56304. Disputed compensation
If the person entitled to compensation disputes the amount of just compensation determined by the Secretary of Transportation under
this chapter, the Secretary shall pay the person,
as a tentative advance, 75 percent of the amount
determined. The person may bring a civil action
against the United States to recover just compensation. If the tentative advance paid under
this section is greater than the amount of the
court’s judgment, the person shall refund the
difference.

56304 ..........

Source (U.S. Code)

Source (Statutes at Large)

46 App.:1242(c) (2d
sentence), (d) (1st
par. words after
2d comma).

June 29, 1936, ch. 858, title
IX, § 902(c) (2d sentence),
(d) (1st par. words after 2d
comma); as added Aug. 7,
1939, ch. 555, § 3, 53 Stat.
1256; Aug. 3, 1956, ch. 929,
§§ 2, 3, 70 Stat. 985; Pub. L.
97–31, § 12(131), Aug. 6, 1981,
95 Stat. 165.

This section is substituted for the source provisions
to eliminate unnecessary words.

§ 56305. Vessel encumbrances
(a) IN GENERAL.—The existence of an encumbrance on a vessel does not prevent the requisition of the vessel under this chapter.
(b) DEPOSIT IN TREASURY.—
(1) IN GENERAL.—If an encumbrance exists,
the Secretary of Transportation may deposit
part of the compensation or advance of compensation to be paid under this chapter (but
not more than the total amount of all encumbrances) in a fund in the Treasury. The Secretary shall publish notice of the creation of
the fund in the Federal Register.
(2) AVAILABILITY OF AMOUNTS DEPOSITED.—
Amounts deposited in the fund shall be available to pay the compensation or any of the encumbrances (including encumbrances stipulated to in a court of the United States or a
State) existing at the time the vessel was requisitioned.
(c) CIVIL ACTION.—
(1) IN GENERAL.—Within 6 months after publication of notice under subsection (b), the
holder of an encumbrance may bring a civil
action in admiralty, according to the principles of libels in rem, against the fund.
(2) VENUE.—The action must be brought in
the district court of the United States—
(A) from whose custody the vessel was or
may be requisitioned; or
(B) in whose district the vessel was located
when it was requisitioned.
(3) SERVICE OF PROCESS.—Service of process
shall be made on the appropriate United
States Attorney, the Attorney General, and
the Secretary, in the manner provided by the
Federal Rules of Civil Procedure (28 App.
U.S.C.). Notice of the action shall be given to
all interested persons as ordered by the court.
(4) AS BETWEEN PRIVATE PARTIES.—The action shall proceed and be determined according to the principles of law and the rules of
practice applicable in like cases between private parties.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1655.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

56305 ..........

46 App.:1242(d) (last
par.).

June 29, 1936, ch. 858, title
IX, § 902(d) (last par.), as
added Mar. 24, 1943, ch. 26,
§ 3(d), 57 Stat. 49; Pub. L.
97–31, § 12(131), Aug. 6, 1981,
95 Stat. 165.

§ 56306

TITLE 46—SHIPPING

In this section, the words ‘‘encumbrance’’ and ‘‘encumbrances’’ are substituted for ‘‘any valid claim by
way of mortgage or maritime claim or attachment
lien’’ and ‘‘any valid claim by way of mortgage or maritime lien or attachment lien’’ to eliminate unnecessary
words.
In subsection (b)(1), the words ‘‘The Secretary shall
publish notice of the creation of the fund in the Federal
Register’’ are added for clarity, based on language barring a civil action not brought within 6 months after
publication of such a notice.
In subsection (c)(1), the words ‘‘Within 6 months after
publication of notice under subsection (b)’’ are substituted for ‘‘prior to June 30, 1943, or within six
months after the first such deposit with the Treasurer
and publication of notice thereof in the Federal Register, whichever date is later’’ for clarity and to eliminate obsolete language.
Subsection (c)(3) is substituted for ‘‘and such suit
shall be commenced in the manner provided by section
742 of this Appendix and service of process shall be
made in the manner therein provided by service upon
the United States attorney and by mailing by registered mail to the Attorney General and the Secretary
of Transportation and due notice shall under order of
the court be given to all interested persons’’ because
the relevant sentences in 46 App. U.S.C. 742 were struck
by an amendment in 1996. See generally Henderson v.
United States, 517 U.S. 654, 116 S. Ct. 1638 (1996).
In subsection (c)(4), the words ‘‘any decree in said
suit shall be paid out of the first and all subsequent deposits of compensation’’ and ‘‘any decree shall be subject to appeal and revision as now provided in other
cases of admiralty and maritime jurisdiction’’ are
omitted as surplus.

§ 56306. Use and transfer of vessels
(a) IN GENERAL.—The Secretary of Transportation may repair, recondition, reconstruct, operate, or charter for operation, a vessel acquired
under this chapter.
(b) TRANSFER TO OTHER AGENCIES.—The Secretary may transfer the possession or control of
a vessel acquired under this chapter to another
department or agency of the United States Government on terms and conditions approved by
the President. The department or agency shall
promptly reimburse the Secretary for expenditures for just compensation, purchase price,
charter hire, repairs, reconditioning, or reconstruction.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1656.)
HISTORICAL AND REVISION NOTES
Revised
Section
56306 ..........

Source (U.S. Code)
46 App.:1242(e).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 902(e); as added Aug.
7, 1939, ch. 555, § 3, 53 Stat.
1256;
Pub.
L.
97–31,
§ 12(131), Aug. 6, 1981, 95
Stat. 165.

In this section, the word ‘‘vessel’’ is substituted for
‘‘property’’ for consistency in the chapter.
In subsection (b), the words ‘‘Such reimbursements
shall be deposited in the construction fund established
by section 1116 of this Appendix’’ are omitted as impliedly repealed by 46 App. U.S.C. 1119 as amended in
1967.

§ 56307. Return of vessels
When a vessel requisitioned for use but not
ownership is returned to the owner, the Secretary of Transportation shall—
(1) return the vessel in a condition at least
as good as when taken, less ordinary wear and
tear; or

Page 390

(2) pay the owner an amount sufficient to recondition the vessel to that condition, less ordinary wear and tear.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1656.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

56307 ..........

46 App.:1242(a) (4th
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 902(a) (4th sentence),
49 Stat. 2015; Pub. L. 97–31,
§ 12(131), Aug. 6, 1981, 95
Stat. 165.

The words ‘‘requisitioned for use but not ownership’’
are substituted for ‘‘taken and used under authority of
this section, but the ownership thereof is not required
by the United States’’ to eliminate unnecessary words.

CHAPTER 565—ESSENTIAL VESSELS
AFFECTED BY NEUTRALITY ACT
Sec.

56501.
56502.
56503.
56504.

Definition.
Adjusting obligations and arranging maintenance.
Types of adjustments and arrangements.
Changes in adjustments and arrangements.

§ 56501. Definition
In this chapter, the term ‘‘essential vessel’’
means a vessel that is—
(1)(A) security for a mortgage indebtedness
to the United States Government; or
(B) constructed under this subtitle or required by a contract under this subtitle to be
operated on a certain essential foreign trade
route; and
(2) necessary in the interests of commerce
and national defense to be maintained in condition for prompt use.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1656.)
HISTORICAL AND REVISION NOTES
Revised
Section
56501 ..........

Source (U.S. Code)
46 App.:1242a(a).

§ 56502. Adjusting
maintenance

Source (Statutes at Large)
June 29, 1940, ch. 442, subdiv.
(a), 54 Stat. 684.

obligations

and

arranging

(a) GENERAL AUTHORITY.—On written application, the Secretary of Transportation may adjust obligations and arrange for maintenance of
an essential vessel as provided in this chapter if
the Secretary determines, after any investigation or proceeding the Secretary considers desirable, that—
(1) the operation of the vessel in the service,
route, or line to which it is assigned under this
subtitle, or in which it otherwise would be operated, is not—
(A) lawful under the Neutrality Act of 1939
(22 U.S.C. 441 et seq.) or a proclamation issued under that Act; or
(B) compatible with maintaining the availability of the vessel for national defense and
commerce;
(2) it is not feasible under existing law to
employ the vessel in any other service or operation in foreign or domestic trade (except temporary or emergency operation under section
56503(b)(5) of this title); and

Page 391

§ 56504

TITLE 46—SHIPPING

(3) the applicant, because of the restrictions
of the Neutrality Act of 1939 (22 U.S.C. 441 et
seq.) or the withdrawal of vessels for national
defense under paragraph (1), is not earning or
will not earn a reasonable return on the capital necessarily employed in its business.
(b) EFFECTIVE PERIOD.—Adjustments and arrangements under subsection (a) shall continue
in effect only as long as the circumstances described in subsection (a) continue to exist.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1657.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

56502 ..........

46 App.:1242a(b), (e).

June 29, 1940, ch. 442,
subdivs. (b), (e), 54 Stat.
684, 686; Pub. L. 97–31,
§ 12(132), Aug. 6, 1981, 95
Stat. 165.

The text of 46 App. U.S.C. 1242a(b) (1st sentence) is
omitted as surplus. The text of 46 App. U.S.C. 1242a(e)
is omitted as obsolete.
REFERENCES IN TEXT
The Neutrality Act of 1939, referred to in subsec.
(a)(1)(A), (3), is act Nov. 4, 1939, ch. 2, 54 Stat. 4, which
is classified generally to subchapter II (§ 441 et seq.) of
chapter 9 of Title 22, Foreign Relations and Intercourse. For complete classification of this Act to the
Code, see Short Title note set out under section 441 of
Title 22 and Tables.

§ 56503. Types of adjustments and arrangements
(a) SUSPENSION REQUIREMENTS.—An adjustment or arrangement under this chapter shall
include suspension of—
(1) the requirement to operate the vessel in
foreign trade under the applicable operatingdifferential or construction-differential subsidy contract or mortgage or other agreement;
and
(2) the right to operating-differential subsidy for the vessel.
DISCRETIONARY ADJUSTMENTS AND ARRANGEMENTS.—To the extent the Secretary of
Transportation considers appropriate to carry
out the purposes of this subtitle, an adjustment
or arrangement under this chapter may include
any of the following:
(1) Lay-up of the vessel by the owner or in
the custody of the Secretary, with payment or
reimbursement by the Secretary of necessary
and proper expenses (including reasonable
overhead and insurance) or a fixed periodic allowance instead of payment or reimbursement.
(2) Postponement, for not more than the
total period of the lay-up, of the maturity
date of each installment of the principal of obligations to the United States Government for
the vessel (regardless of whether the maturity
date is during a lay-up period), or rearrangement of those maturities.
(3) Postponement or cancellation of interest
accruing on the obligations during a lay-up period.
(4) Extension, for not more than the total
period of the lay-up, of the 20-year life limitation for the vessel and other limitations and
provisions of this subtitle based on a 20-year
life.

(5) Provision for temporary or emergency
employment of the vessel (instead of lay-up)
as may be practicable, with such arrangements for management of the vessel, payment
of expenses, and application of the proceeds of
the employment, as the Secretary may approve, with any period of operation being included as part of the lay-up period.
(6) Payment to the Secretary, on termination of the arrangements with the applicant, of the applicant’s net profits (earned
while the arrangements were in effect) in excess of 10 percent a year on the capital necessarily employed in the applicant’s business,
as reimbursement for obligations postponed or
canceled and expenses incurred or paid by the
Secretary under this section.
(c) LAID-UP VESSELS.—Under subsection (b)(6),
capital of the applicant represented by a vessel
of the applicant laid-up or operated under this
section shall be included in capital necessarily
employed in the applicant’s business. The Secretary may require a vessel laid-up or operated
under this section to be security for reimbursement.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1657.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

56503 ..........

46 App.:1242a(c).

Source (Statutes at Large)
June 29, 1940, ch. 442, subdiv.
(c), 54 Stat. 685; Pub. L.
97–31, § 12(132), Aug. 6, 1981,
95 Stat. 165.

§ 56504. Changes in adjustments and arrangements
The Secretary of Transportation may change
an adjustment or arrangement made under this
chapter as the Secretary considers necessary to
carry out this chapter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1658.)

(b)

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

56504 ..........

46 App.:1242a(d).

Source (Statutes at Large)
June 29, 1940, ch. 442, subdiv.
(d), 54 Stat. 686; Pub. L.
97–31, § 12(132), Aug. 6, 1981,
95 Stat. 165.

PART F—GOVERNMENT-OWNED MERCHANT
VESSELS
CHAPTER 571—GENERAL AUTHORITY
Sec.

57101.
57102.
57103.
57104.
57105.
57106.
57107.
57108.
57109.

Placement of vessels in National Defense Reserve Fleet.
Disposition of vessels not worth preserving.
Sale of obsolete vessels in National Defense
Reserve Fleet.
Acquisition of vessels from sale of obsolete
vessels.
Acquisition of vessels for essential services,
routes, or lines.
Maintenance, improvement, and operation of
vessels.
Vessels for other agencies.
Consideration of ballast and equipment in determining selling price.
Operation of vessels purchased, chartered, or
leased from Secretary of Transportation.

§ 57101

TITLE 46—SHIPPING

§ 57101. Placement of vessels in National Defense
Reserve Fleet
(a) IN GENERAL.—Any vessel acquired by the
Maritime Administration shall be placed in the
National Defense Reserve Fleet maintained
under section 11 of the Merchant Ship Sales Act
of 1946 (50 App. U.S.C. 1744).
(b) REMOVAL FROM FLEET.—A vessel placed in
the Fleet under subsection (a) may not be traded
out or sold from the Fleet, except as provided in
section 57102, 57103, or 57104 or chapter 533, 537,
573, or 575 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1658.)
HISTORICAL AND REVISION NOTES
Revised
Section
57101 ..........

Source (U.S. Code)
46 App.:1160(j).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(j), as added Pub.
L. 89–254, § 2, Oct. 10, 1965,
79 Stat. 980; Pub. L. 97–31,
§ 12(91), Aug. 6, 1981, 95
Stat. 161.

In subsection (a), the words ‘‘vessel acquired by the
Maritime Administration’’ are subtituted for ‘‘vessel
heretofore or hereafter acquired under this section, or
otherwise acquired by the Maritime Administration of
the Department of Transportation under any other authority’’ to eliminate unnecessary words.
In subsection (b), the words ‘‘except as provided in
section 57102, 57103, or 57104 or chapter 533, 537, 573, or
575 of this title’’ are substituted for ‘‘except as provided
for in subsections (g) and (i) of this section. This limitation shall not affect the rights of the Secretary of
Transportation to dispose of a vessel as provided in
other sections of this subchapter or in subchapters VII
or XI of this chapter’’ because of the restatement.

§ 57102. Disposition of vessels not worth preserving
(a) IN GENERAL.—If the Secretary of Transportation determines that a vessel owned by the
Maritime Administration is of insufficient value
for commercial or military operation to warrant
its further preservation, the Secretary may
scrap the vessel or sell the vessel for cash.
(b) SELLING PROCEDURE.—The sale of a vessel
under subsection (a) shall be made on the basis
of competitive sealed bids, after an appraisal
and due advertisement. The purchaser does not
have to be a citizen of the United States. The
purchaser shall provide a surety bond, with a
surety approved by the Secretary, to ensure that
the vessel will not be operated in the foreign
trade of the United States at any time within 10
years after the sale, in competition with a vessel
owned by a citizen of the United States and documented under the laws of the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1658.)
HISTORICAL AND REVISION NOTES
Revised
Section
57102 ..........

Source (U.S. Code)
46 App.:1158(a).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 508(a), 49 Stat. 2000;
Pub. L. 97–31, § 12(89), Aug.
6, 1981, 95 Stat. 161; Pub.
L. 108–136, title XXXV,
§ 3512(1), Nov. 24, 2003, 117
Stat. 1789.

In subsection (a), the words ‘‘vessel owned by the
Maritime Administration’’ are substituted for ‘‘vessel
transferred to the Maritime Administration of the De-

Page 392

partment of Transportation by section 1112 of this Appendix, or hereafter acquired’’ to eliminate unnecessary words.
In subsection (b), the words ‘‘The sale of a vessel
under section (a) shall be made on the basis of competitive sealed bids, after an appraisal and due advertisement. The purchaser does not have to be a citizen of
the United States.’’ are substituted for ‘‘after appraisement and due advertisement, and upon competitive
sealed bids, either to citizens of the United States or to
aliens’’ for clarity. The words ‘‘provide a surety bond,
with a surety approved by the Secretary, to ensure
that’’ are substituted for ‘‘enter into an undertaking
with sureties approved by the Secretary of Transportation that’’ for clarity.
LIMITATION ON EXPORT OF VESSELS OWNED BY THE
GOVERNMENT OF THE UNITED STATES FOR THE PURPOSE OF DISMANTLING, RECYCLING, OR SCRAPPING
Pub. L. 110–417, div. C, title XXXV, § 3502, Oct. 14, 2008,
122 Stat. 4761, provided that:
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), no vessel that is owned by the Government of the
United States shall be approved for export to a foreign
country for purposes of dismantling, recycling, or
scrapping.
‘‘(b) EXCEPTION.—Subsection (a) shall not apply with
respect to a vessel if the Administrator of the Maritime
Administration certifies to the Committee on Armed
Services of the House of Representatives and the Committee on Commerce, Science, and Transportation of
the Senate that—
‘‘(1) a compelling need for dismantling, recycling,
or scrapping the vessel exists;
‘‘(2) there is no available capacity in the United
States to conduct the dismantling, recycling, or
scrapping of the vessel;
‘‘(3) any dismantling, recycling, or scrapping of the
vessel in a foreign country will be conducted in full
compliance with environmental, safety, labor, and
health requirements for ship dismantling, recycling,
or scrapping that are equivalent to the laws of the
United States; and
‘‘(4) the export of the vessel under this section will
only be for dismantling, recycling, or scrapping of the
vessel.
‘‘(c) UNITED STATES DEFINED.—In this section the
term ‘United States’ means the States of the United
States, Puerto Rico, and Guam.’’
VESSEL DISPOSAL PROGRAM
Pub. L. 110–181, div. C, title XXXV, § 3503, Jan. 28, 2008,
122 Stat. 592, provided that:
‘‘(a) IN GENERAL.—Within 30 days after the date of the
enactment of this Act [Jan. 28, 2008], the Secretary of
Transportation shall convene a working group to review and make recommendations on best practices for
the storage and disposal of obsolete vessels owned or
operated by the Federal Government. The Secretary
shall invite senior representatives from the Maritime
Administration, the Coast Guard, the Environmental
Protection Agency, the National Oceanic and Atmospheric Administration, and the United States Navy to
participate in the working group. The Secretary may
request the participation of senior representatives of
any other Federal department or agency, as appropriate, and may also request participation from concerned State environmental agencies.
‘‘(b) SCOPE.—Among the vessels to be considered by
the working group are Federally owned or operated vessels that are—
‘‘(1) to be scrapped or recycled;
‘‘(2) to be used as artificial reefs; or
‘‘(3) to be used for the Navy’s SINKEX program.
‘‘(c) PURPOSE.—The working group shall—
‘‘(1) examine current storage and disposal policies,
procedures, and practices for obsolete vessels owned
or operated by Federal agencies;
‘‘(2) examine Federal and State laws and regulations governing such policies, procedures, and practices and any applicable environmental laws; and

Page 393

TITLE 46—SHIPPING

‘‘(3) within 90 days after the date of enactment of
the [this] Act [Jan. 28, 2008], submit a plan to the
Committee on Armed Services and the Committee on
Commerce, Science and Transportation of the Senate
and the Committee on Armed Services of the House
of Representatives to improve and harmonize practices for storage and disposal of such vessels, including the interim transportation of such vessels.
‘‘(d) CONTENTS OF PLAN.—The working group shall include in the plan submitted under subsection (c)(3)—
‘‘(1) a description of existing measures for the storage, disposal, and interim transportation of obsolete
vessels owned or operated by Federal agencies in
compliance with Federal and State environmental
laws in a manner that protects the environment;
‘‘(2) a description of Federal and State laws and
regulations governing the current policies, procedures, and practices for the storage, disposal, and interim transportation of such vessels;
‘‘(3) recommendations for environmental best practices that meet or exceed, and harmonize, the requirements of Federal environmental laws and regulations applicable to the storage, disposal, and interim transportation of such vessels;
‘‘(4) recommendations for environmental best practices that meet or exceed the requirements of State
laws and regulations applicable to the storage, disposal, and interim transportation of such vessels;
‘‘(5) procedures for the identification and remediation of any environmental impacts caused by the
storage, disposal, and interim transportation of such
vessels; and
‘‘(6) recommendations for necessary steps, including regulations if appropriate, to ensure that best environmental practices apply to all such vessels.
‘‘(e) IMPLEMENTATION OF PLAN.—
‘‘(1) IN GENERAL.—As soon as practicable after the
date of enactment of the [this] Act [Jan. 28, 2008], the
head of each Federal department or agency participating in the working group, in consultation with the
other Federal departments and agencies participating
in the working group, shall take such action as may
be necessary, including the promulgation of regulations, under existing authorities to ensure that the
implementation of the plan provides for compliance
with all Federal and State laws and for the protection of the environment in the storage, interim transportation, and disposal of obsolete vessels owned or
operated by Federal agencies.
‘‘(2) ARMED SERVICES VESSELS.—The Secretary and
the Secretary of Defense, in consultation with the
Administrator of the Environmental Protection
Agency, shall each ensure that environmental best
practices are observed with respect to the storage,
disposal, and interim transportation of obsolete vessels owned or operated by the Department of Defense.
‘‘(f) RULE OF CONSTRUCTION.—Nothing in this section
shall be construed to supersede, limit, modify, or otherwise affect any other provision of law, including environmental law.’’

§ 57103. Sale of obsolete vessels in National Defense Reserve Fleet
(a) IN GENERAL.—The Secretary of Transportation may convey the right, title, and interest
of the United States Government in any vessel
of the National Defense Reserve Fleet that has
been identified by the Secretary as an obsolete
vessel of insufficient value to warrant its further preservation, if the recipient—
(1) is a non-profit organization, a State, or a
municipal corporation or political subdivision
of a State;
(2) agrees not to use, or allow others to use,
the vessel for commercial transportation purposes;
(3) agrees to make the vessel available to the
Government whenever the Secretary indicates
that it is needed by the Government;

§ 57103

(4) agrees to hold the Government harmless
for any claims arising from exposure to asbestos, polychlorinated biphenyls, lead paint, or
other hazardous substances after conveyance
of the vessel, except for claims arising from
use of the vessel by the Government;
(5) has a conveyance plan and a business
plan that describes the intended use of the
vessel, each of which has been submitted to
and approved by the Secretary;
(6) has provided proof, as determined by the
Secretary, of resources sufficient to accomplish the transfer, necessary repairs and modifications, and initiation of the intended use of
the vessel; and
(7) agrees that when the recipient no longer
requires the vessel for use as described in the
business plan required under paragraph (5)—
(A) the recipient will, at the discretion of
the Secretary, reconvey the vessel to the
Government in good condition except for ordinary wear and tear; or
(B) if the Board of Trustees of the recipient has decided to dissolve the recipient according to the laws of the State in which the
recipient is incorporated, then—
(i) the recipient shall distribute the vessel, as an asset of the recipient, to a person
that has been determined exempt from
taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C.
501(c)(3)), or to the Federal Government or
a State or local government for a public
purpose; and
(ii) the vessel shall be disposed of by a
court of competent jurisdiction of the
county in which the principal office of the
recipient is located, for such purposes as
the court shall determine, or to such organizations as the court shall determine are
organized exclusively for public purposes.
(b) OTHER EQUIPMENT.—At the Secretary’s discretion, additional equipment from other obsolete vessels of the Fleet may be conveyed to assist the recipient with maintenance, repairs, or
modifications.
(c) ADDITIONAL TERMS.—The Secretary may require any additional terms the Secretary considers appropriate.
(d) DELIVERY OF VESSEL.—If conveyance is
made under this section, the vessel shall be delivered to the recipient at a time and place to be
determined by the Secretary. The vessel shall be
conveyed in an ‘‘as is’’ condition.
(e) LIMITATIONS.—If at any time prior to delivery of the vessel to the recipient, the Secretary
determines that a different disposition of the
vessel would better serve the interests of the
Government, the Secretary shall pursue the
more favorable disposition of the obsolete vessel
and shall not be liable for any damages that
may result from an intended recipient’s reliance
upon a proposed transfer.
(f) REVERSION.—The Secretary shall include in
any conveyance under this section terms under
which all right, title, and interest conveyed by
the Secretary shall revert to the Government if
the Secretary determines the vessel has been
used other than as described in the business plan
required under subsection (a)(5).
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1659.)

§ 57104

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
57103 ..........

Source (U.S. Code)
46 App.:1158(b).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 508(b), as added Pub.
L. 108–136, title XXXV,
§ 3512(2), Nov. 24, 2003, 117
Stat. 1789.

In subsection (a), before paragraph (1), the words
‘‘Notwithstanding section 1160(j) of this title’’ are omitted as unnecessary because section 46 App. U.S.C.
1160(j) is restated in section 57101 of the revised title
and that section contains an exception which includes
this section. In paragraph (1), the words ‘‘Commonwealth, or possession of the United States’’ and ‘‘or the
District of Columbia’’ are omitted as unnecessary because of the definition of ‘‘State’’ in chapter 1 of the revised title.

§ 57104. Acquisition of vessels from sale of obsolete vessels
(a) IN GENERAL.—The Secretary of Transportation may acquire suitable documented vessels
with amounts in the Vessel Operations Revolving Fund derived from the sale of obsolete vessels in the National Defense Reserve Fleet.
(b) VALUATION.—The acquired and obsolete
vessels shall be valued at their scrap value in
domestic or foreign markets as of the date of
the acquisition for or sale from the Fleet. However, the value assigned to those vessels shall be
determined on the same basis, with consideration given to the fair value of the cost of moving the vessel sold from the Fleet to the place of
scrapping.
(c) COSTS INCIDENT TO LAY-UP.—Costs incident
to the lay-up of the vessel acquired under this
section may be paid from amounts in the Fund.
(d) TRANSFERS TO NON-CITIZENS.—A vessel sold
from the Fleet under this section may be
scrapped in an approved foreign market without
obtaining additional separate approval from the
Secretary to transfer the vessel to a person not
a citizen of the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1660.)
HISTORICAL AND REVISION NOTES
Revised
Section
57104 ..........

Source (U.S. Code)
46 App.:1160(i).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(i), as added Pub.
L. 86–575, July 5, 1960, 74
Stat. 312; Pub. L. 89–254,
§ 1, Oct. 10, 1965, 79 Stat.
980; Pub. L. 91–469, § 13,
Oct. 21, 1970, 84 Stat. 1022;
Pub. L. 93–605, § 1, Jan. 2,
1975, 88 Stat. 1965; Pub. L.
95–177, Nov. 15, 1977, 91
Stat. 1368; Pub. L. 97–31,
§ 12(91), Aug. 6, 1981, 95
Stat. 161; Pub. L. 101–595,
title VII, § 704, Nov. 16,
1990, 104 Stat. 2994.

In subsection (b), the words ‘‘vessel sold from the
Fleet’’ are substituted for ‘‘traded-out vessel’’ for clarity and consistency.
In subsection (d), the words ‘‘without obtaining additional separate approval from the Secretary to transfer
the vessel to a person not a citizen of the United
States’’ are substituted for ‘‘Notwithstanding the provisions of sections 808 and 835 of this Appendix’’ for
clarity and to avoid the cross references.

Page 394

§ 57105. Acquisition of vessels for essential services, routes, or lines
(a) IN GENERAL.—The Secretary of Transportation may acquire a vessel, by purchase or
otherwise, if—
(1) the Secretary considers the vessel necessary to establish, maintain, improve, or
serve as a replacement on an essential service,
route, or line in the foreign commerce of the
United States, as determined under section
50103 of this title;
(2) the vessel was constructed in the United
States; and
(3) the Secretary of the Navy has certified to
the Secretary of Transportation that the vessel is suitable for economical and speedy conversion into a naval or military auxiliary or
otherwise suitable for use by the United
States Government in time of war or national
emergency.
(b) PRICE.—The price paid for the vessel shall
be based on a fair and reasonable valuation.
However, the price may not exceed by more than
5 percent the cost of the vessel to the owner (excluding any construction-differential subsidy
and the cost of national defense features paid by
the Secretary of Transportation) plus the actual
cost previously expended for reconditioning, less
depreciation based on a 25-year life for a drycargo or passenger vessel and a 20-year life for a
tanker or other liquid bulk carrier vessel.
(c) DOCUMENTATION.—A vessel acquired under
this section that is not documented under the
laws of the United States at the time of acquisition shall be so documented as soon as practicable.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1660.)
HISTORICAL AND REVISION NOTES
Revised
Section
57105 ..........

Source (U.S. Code)
46 App.:1125.

46 App.:1125 note.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 215, as added June 23,
1938, ch. 600, § 4, 52 Stat.
954; Pub. L. 86–518, § 1,
June 12, 1960, 74 Stat. 216;
Pub. L. 97–31, § 12(73), Aug.
6, 1981, 95 Stat. 160.
Pub. L. 86–518, § 9, June 12,
1960, 74 Stat. 217.

In subsection (a), the words ‘‘and to pay for the same
out of his construction fund’’ are omitted as obsolete
because the construction fund established under 46 App.
U.S.C. 1116 was impliedly abolished by 46 App. U.S.C.
1119, as amended.
In subsection (b), the words ‘‘less depreciation based
on a 25-year life for a dry-cargo or passenger vessel and
a 20-year life for a tanker or other liquid bulk carrier
vessel’’ are substituted for ‘‘less depreciation based
upon a twenty-five year life expectancy of the vessel’’
because of section 9 of Public Law 86–518 (June 12, 1960,
74 Stat. 217), which provided that ‘‘Nothing in any
amendment made by this Act [including section 1 substituting ‘twenty-five’ for ‘twenty’ in 46 App. U.S.C.
1125] shall operate or be interpreted to change from
twenty to twenty-five years the provisions of the Merchant Marine Act, 1936, as amended, relating to the
commercial expectancy or period of depreciation of any
tanker or other liquid bulk carrier.’’

§ 57106. Maintenance, improvement, and operation of vessels
(a) IN GENERAL.—The Secretary of Transportation may maintain, repair, recondition, re-

Page 395

model, and improve vessels owned by the United
States Government and in the possession or
under the control of the Secretary, to equip
them adequately for competition in the foreign
trade of the United States. The Secretary may
operate such a vessel or charter the vessel on
terms and conditions the Secretary considers
appropriate to carry out the purposes of this
subtitle.
(b) DOCUMENTATION AND RESTRICTIONS ON OPERATION.—A vessel reconditioned, remodeled, or
improved under subsection (a) shall be documented under the laws of the United States and
remain so documented for at least 5 years after
completion of the reconditioning, remodeling, or
improvement. During that period, it shall be operated on voyages that are not exclusively
coastwise.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1661.)
HISTORICAL AND REVISION NOTES
Revised
Section
57106 ..........

§ 57301

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:871.

46 App.:891b.

Source (Statutes at Large)
June 5, 1920, ch. 250, § 12, 41
Stat. 993; June 6, 1924, ch.
273, § 2, 43 Stat. 468; Feb.
11, 1927, ch. 104, § 1 (last
par.
under
heading
‘‘United States Shipping
Board’’), 44 Stat. 1083;
Exec. Order No. 6166, § 12,
eff. June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(43), Aug. 6, 1981, 95
Stat. 157.
May 22, 1928, ch. 675, title II,
§ 202, 45 Stat. 690; Exec.
Order No. 6166, § 12, eff.
June 10, 1933; June 29,
1936, ch. 858, title II, § 204,
title IX, § 904, 49 Stat.
1987, 2016; Pub. L. 97–31,
§ 12(51), Aug. 6, 1981, 95
Stat. 157.

§ 57108. Consideration of ballast and equipment
in determining selling price
The Maritime Administration may not sell a
vessel until its ballast and equipment have been
inventoried and their value considered in determining the selling price of the vessel.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1661.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

57108 ..........

46 App.:864b.

Unless otherwise authorized by the Secretary
of Transportation, a vessel purchased, chartered, or leased from the Secretary may be operated only under a certificate of documentation
with a registry or coastwise endorsement. Such
a vessel, while employed solely as a merchant
vessel, is subject to the laws, regulations, and liabilities governing merchant vessels, whether
the United States Government has an interest in
the vessel as an owner or holds a mortgage, lien,
or other interest.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1661.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

57109 ..........

46 App.:808(b).

§ 57107. Vessels for other agencies

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1661.)
HISTORICAL AND REVISION NOTES
Revised
Section
57107 ..........

Source (U.S. Code)
46 App.:1125a.

Source (Statutes at Large)
Feb. 6, 1941, ch. 5, § 4, 55
Stat. 6; Pub. L. 97–31,
§ 12(74), Aug. 6, 1981, 95
Stat. 160.

In subsection (b), the words ‘‘heretofore or hereafter’’, ‘‘diminish or otherwise’’, and ‘‘and, to the
amount of such obligation or expenditure, diminish’’
are omitted as unnecessary.

June 29, 1949, ch. 281, § 1
(proviso), 63 Stat. 349;
Pub. L. 97–31, § 12(36), Aug.
6, 1981, 95 Stat. 156.

§ 57109. Operation of vessels purchased, chartered, or leased from Secretary of Transportation

This section is substituted for the source provisions
to eliminate obsolete and unnecessary provisions.

(a) IN GENERAL.—The Secretary of Transportation may construct, reconstruct, repair, equip,
and outfit, by contract or otherwise, vessels or
parts thereof, for any other department or agency of the United States Government to the extent the other department or agency is authorized by law to do so for its own account.
(b) EFFECT ON CONTRACT AUTHORIZATION.—An
obligation incurred or expenditure made by the
Secretary under this section does not affect any
contract authorization of the Secretary, but instead shall be charged against the existing appropriation or contract authorization of the department or agency.

Source (Statutes at Large)

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 9(b),
39 Stat. 730; July 15, 1918,
ch. 152, § 3, 40 Stat. 900; restated June 5, 1920, ch. 250,
§ 18, 41 Stat. 994; Ex. Ord.
No. 6166, § 12, eff. June 10,
1933; June 29, 1936, ch. 858,
title II, § 204, title IX,
§ 904, 49 Stat. 1987, 2016;
Pub. L. 97–31, § 12(26), Aug.
6, 1981, 95 Stat. 155; Pub.
L.
100–710,
title
I,
§ 104(b)(2), Nov. 23, 1988, 102
Stat. 4750.

The words ‘‘only under a certificate of documentation
with a registry or coastwise endorsement’’ are substituted for ‘‘only under such registry or enrollment
and license’’ for clarity and to use the appropriate current language.

CHAPTER 573—VESSEL TRADE-IN PROGRAM
Sec.

57301.
57302.
57303.
57304.
57305.
57306.
57307.
57308.

Definitions.
Authority to acquire vessels.
Utility value and tonnage requirements.
Eligible acquisition dates.
Determination of trade-in allowance.
Payment of trade-in allowance.
Recognition of gain for tax purposes.
Use of vessels at least 25 years old.

§ 57301. Definitions
In this chapter:
(1) NEW VESSEL.—The term ‘‘new vessel’’
means a vessel—
(A) constructed under this subtitle and acquired within 2 years after the date of completion; or
(B) constructed in a domestic shipyard on
private account and not under this subtitle,

§ 57302

TITLE 46—SHIPPING

and documented under the laws of the
United States.
(2) OBSOLETE VESSEL.—The term ‘‘obsolete
vessel’’ means a vessel that—
(A) is of at least 1,350 gross tons;
(B) the Secretary of Transportation believes should, because of its age, obsolescence, or other reasons, be replaced in the
public interest; and
(C) has been owned by a citizen of the
United States for at least 3 years immediately before its acquisition under this
chapter.

Page 396

ity value at least equal to that of the obsolete
vessel, the new vessel may be of lesser gross tonnage than the obsolete vessel. However, the
gross tonnage of the new vessel must be at least
one-third the gross tonnage of the obsolete vessel.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1662.)
HISTORICAL AND REVISION NOTES
Revised
Section
57303 ..........

Source (U.S. Code)
46 App.:1160(c).

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1662.)
HISTORICAL AND REVISION NOTES
Revised
Section
57301 ..........

Source (U.S. Code)
46 App.:1160(a).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(a), as added Aug.
4, 1939, ch. 417, § 7, 53 Stat.
1183; July 17, 1952, ch. 939,
§ 7, 66 Stat. 762; Pub. L.
85–332, Feb. 20, 1958, 72
Stat. 17; Pub. L. 87–755,
Oct. 5, 1962, 76 Stat. 751;
Pub. L. 91–469, § 12(a), Oct.
21, 1970, 84 Stat. 1022; Pub.
L. 97–31, § 12(91), Aug. 6,
1981, 95 Stat. 161.

In paragraph (1)(A), the words ‘‘or is purchased under
section 1204 of this Appendix, as amended, by the person turning in an obsolete vessel under this section’’
are omitted because the purchase authority under 46
App. U.S.C. 1204 was impliedly repealed by section 14 of
the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1735
note).

§ 57302. Authority to acquire vessels
To promote the construction of new, safe, and
efficient vessels to carry the domestic and foreign waterborne commerce of the United States,
the Secretary of Transportation may acquire an
obsolete vessel in exchange for an allowance of
credit toward the cost of construction or purchase of a new vessel as provided in this chapter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1662.)
HISTORICAL AND REVISION NOTES
Revised
Section
57302 ..........

Source (U.S. Code)
46 App.:1160(b) (1st,
last sentences).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(b) (1st, last sentences), as added Aug. 4,
1939, ch. 417, § 7, 53 Stat.
1184;
Pub.
L.
87–401,
subdiv. (1), Oct. 5, 1961, 75
Stat. 833; Pub. L. 91–469,
§ 35(a), Oct. 21, 1970, 84
Stat. 1035; Pub. L. 97–31,
§ 12(91), Aug. 6, 1981, 95
Stat. 161.

The words ‘‘toward the cost of construction or purchase of a new vessel’’ are added for clarity. The text
of 46 App. U.S.C. 1160(b) (last sentence) is omitted as
obsolete.

§ 57303. Utility value and tonnage requirements
(a) UTILITY VALUE.—The utility value of a new
vessel to be acquired under this chapter for operation in the domestic or foreign commerce of
the United States may not be substantially less
than that of the obsolete vessel acquired in exchange under this chapter.
(b) TONNAGE.—If the Secretary of Transportation finds that the new vessel will have a util-

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(c), as added Aug. 4,
1939, ch. 417, § 7, 53 Stat.
1184; Pub. L. 97–31, § 12(91),
Aug. 6, 1981, 95 Stat. 161.

§ 57304. Eligible acquisition dates
At the option of the owner, the acquisition of
an obsolete vessel under this chapter shall
occur—
(1) when the owner contracts for the construction or purchase of a new vessel; or
(2) within 5 days of the actual date of delivery of the new vessel to the owner.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1662.)
HISTORICAL AND REVISION NOTES
Revised
Section
57304 ..........

Source (U.S. Code)
46 App.:1160(b) (2d
sentence).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(b) (2d sentence), as
added Aug. 4, 1939, ch. 417,
§ 7, 53 Stat. 1184; Pub. L.
87–401, subdiv. (1), Oct. 5,
1961, 75 Stat. 833; Pub. L.
91–469, § 35(a), Oct. 21, 1970,
84 Stat. 1035; Pub. L. 97–31,
§ 12(91), Aug. 6, 1981, 95
Stat. 161.

The words ‘‘At the option of the owner’’ are substituted for ‘‘if the owner so requests’’ for clarity.

§ 57305. Determination of trade-in allowance
(a) IN GENERAL.—The Secretary of Transportation shall determine the trade-in allowance
for an obsolete vessel at the time of acquisition
of the vessel. The allowance shall be the fair
value of the vessel. In determining the value,
the Secretary shall consider—
(1) the scrap value of the obsolete vessel in
American and foreign markets;
(2) the depreciated value based on a 20-year
or 25-year life, whichever applies to the obsolete vessel; and
(3) the market value of the obsolete vessel
for operation in world commerce or in the domestic or foreign commerce of the United
States.
(b) USE OF OBSOLETE VESSELS.—If acquisition
of the obsolete vessel occurs when the owner
contracts for the construction of the new vessel,
and the owner uses the obsolete vessel during
the period of construction of the new vessel, the
Secretary shall reduce the trade-in allowance by
an amount representing the fair value of that
use. The Secretary shall establish the rate for
use of the obsolete vessel when the contract for
construction of the new vessel is made.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1663.)

Page 397
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

57305(a) ......

46 App.:1160(b) (3d
sentence), (d) (1st,
2d sentences).

June 29, 1936, ch. 858, title
V, § 510(b) (3d sentence),
(d), as added Aug. 4, 1939,
ch. 417, § 7, 53 Stat. 1184;
July 17, 1952, ch. 939, § 8, 66
Stat. 762; Pub. L. 86–518,
§ 1, June 12, 1960, 74 Stat.
216; Pub. L. 87–401, Oct. 5,
1961, 75 Stat. 833; Pub. L.
91–469, § 35(a), Oct. 21, 1970,
84 Stat. 1035; Pub. L. 97–31,
§ 12(91), Aug. 6, 1981, 95
Stat. 161.

57305(b) ......

§ 57308

TITLE 46—SHIPPING

(1) increased by the difference between the
cost of the new vessel and the trade-in allowance of the obsolete vessel; and
(2) decreased by the amount of loss recognized on the transfer.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1663.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

57307 ..........

46 App.:1160(e).

46 App.:1160(d) (3d,
last sentences).

In subsection (a), the words ‘‘fair value’’ are substituted for ‘‘fair and reasonable value’’ to eliminate
unnecessary words. In paragraph (3), the word ‘‘commerce’’ is substituted for ‘‘trade’’ for consistency in the
chapter.
In subsection (b), the words ‘‘for the entire period of
such use’’ are omitted as unnecessary.

§ 57306. Payment of trade-in allowance
(a) ACQUISITION AT TIME OF CONTRACT.—If acquisition of an obsolete vessel under this chapter occurs when the owner contracts for the construction or purchase of the new vessel, the Secretary of Transportation shall apply the tradein allowance to the purchase price of the new
vessel rather than paying it to the owner. If the
new vessel is constructed under this subtitle,
the Secretary may apply the trade-in allowance
to the required cash payments on terms and conditions the Secretary may prescribe. If the new
vessel is not constructed under this subtitle, the
Secretary shall pay the trade-in allowance to
the builder of the vessel for the account of the
owner when the Secretary acquires the obsolete
vessel.
(b) ACQUISITION AT TIME OF DELIVERY.—If acquisition of the obsolete vessel occurs when the
new vessel is delivered to the owner, the Secretary shall deposit the trade-in allowance in
the owner’s capital construction fund.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(e), as added Aug. 4,
1939, ch. 417, § 7, 53 Stat.
1184; Pub. L. 97–31, § 12(91),
Aug. 6, 1981, 95 Stat. 161.

The words ‘‘for gain or loss upon a sale or exchange
and for depreciation under the applicable Federal income-tax laws’’ and ‘‘or vessels exchanged for credit
upon the acquisition of such new vessel’’ are omitted as
unnecessary. In paragraph (1), the words ‘‘the difference between the cost of the new vessel and the
trade-in allowance of the obsolete vessel’’ are substituted for ‘‘the amount of the cost of such vessel
(other than the cost represented by such obsolete vessel
or vessels)’’ for clarity.

§ 57308. Use of vessels at least 25 years old
An obsolete vessel acquired under this chapter
that is or becomes at least 25 years old may not
be used for commercial operation. However, the
vessel may be used—
(1) during a period in which vessels may be
requisitioned under chapter 563 of this title; or
(2) except as otherwise provided in this subtitle, on trade routes serving only the foreign
trade of the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1664.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

57308 ..........

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1663.)

46 App.:1160(g).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(g), as added Aug.
4, 1939, ch. 417, § 7, 53 Stat.
1185; Pub. L. 86–518, § 1,
June 12, 1960, 74 Stat. 216;
Pub. L. 97–31, § 12(91), Aug.
6, 1981, 95 Stat. 161.

HISTORICAL AND REVISION NOTES
Revised
Section
57306 ..........

Source (U.S. Code)
46 App.:1160(b)
(4th–7th sentences).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
V, § 510(b) (4th–7th sentences), as added Aug. 4,
1939, ch. 417, § 7, 53 Stat.
1184;
Pub.
L.
87–401,
subdiv. (1), Oct. 5, 1961, 75
Stat. 833; Pub. L. 91–469,
§§ 12(b), 35(a), Oct. 21, 1970,
84 Stat. 1022, 1035; Pub. L.
97–31, § 12(91), Aug. 6, 1981,
95 Stat. 161.

In subsection (b), the words ‘‘acquisition of the obsolete vessel occurs’’ are substituted for ‘‘title to the obsolete vessel is acquired’’ for consistency in the chapter.

§ 57307. Recognition of gain for tax purposes
The owner of an obsolete vessel does not recognize a gain under the Federal income tax laws
when the vessel is transferred to the Secretary
of Transportation in exchange for a trade-in allowance under this chapter. The basis of the new
vessel acquired with the allowance is the same
as the basis of the obsolete vessel—

The words ‘‘and vessels presently in the Secretary’s
laid-up fleet which are or become twenty-five years old
or more’’ and ‘‘or any such vessel in the laid-up fleet’’
are omitted as obsolete. In paragraph (2), the words
‘‘for the employment of the Secretary’s vessels in
steamship lines’’ are omitted as unnecessary.

CHAPTER 575—CONSTRUCTION, CHARTER,
AND SALE OF VESSELS
SUBCHAPTER I—GENERAL
Sec.

57501.
57502.
57503.
57504.
57505.
57506.
57511.
57512.
57513.
57514.

Completion of long-range program.
Construction, reconditioning, and remodeling
of vessels.
Competitive bidding.
Charter or sale of vessels acquired by Department of Transportation.
Employment of vessels on foreign trade
routes.
Minimum selling price of vessels.
SUBCHAPTER II—CHARTERS
Demise charters.
Competitive bidding.
Minimum bid.
Qualifications of bidders.

§ 57501

TITLE 46—SHIPPING

Sec.

57515.
57516.
57517.
57518.
57519.
57520.
57521.

Awarding of charters.
Operating-differential subsidies.
Recovery of excess profits.
Performance bond.
Insurance.
Vessel maintenance.
Termination of charter during national emergency.
SUBCHAPTER III—MISCELLANEOUS

57531.
57532.
57533.

Construction and charter of vessels for unsuccessful routes.
Operation of experimental vessels.
Vessel chartering authority 1
AMENDMENTS

Page 398

construction, reconstruction, or reconditioning
of a vessel by a private shipbuilder under this
chapter are subject to the provisions of title V
of the Merchant Marine Act, 1936, applicable to
a contract with a private shipbuilder for the
construction of a vessel under title V of that
Act.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1664.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

57502(a), (b)

46 App.:1192.

57502(c) ......

46 App.:1193(b).

2008—Pub. L. 110–181, div. C, title XXXV, § 3511(b),
Jan. 28, 2008, 122 Stat. 594, added item 57533.

SUBCHAPTER I—GENERAL
§ 57501. Completion of long-range program
Whenever the Secretary of Transportation determines that the objectives and policies declared in sections 50101 and 50102 of this title
cannot be fully realized within a reasonable
time under titles V and VI of the Merchant Marine Act, 1936, and the President approves the
determination, the Secretary, in accordance
with this chapter, shall complete the long-range
program described in section 50102 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1664.)
HISTORICAL AND REVISION NOTES
Revised
Section
57501 ..........

Source (U.S. Code)
46 App.:1191.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 701, 49 Stat. 2008;
Pub. L. 97–31, § 12(103),
Aug. 6, 1981, 95 Stat. 162.

The words ‘‘find and’’, ‘‘finding and’’, ‘‘in whole or in
part’’, and ‘‘previously adopted’’ are omitted as unnecessary. The word ‘‘shall’’ is substituted for ‘‘is authorized and directed to’’ to eliminate unnecessary words.
REFERENCES IN TEXT
The Merchant Marine Act, 1936, referred to in text, is
act June 29, 1936, ch. 858, 49 Stat. 1985. Titles V and VI
of the Act enacted provisions set out as notes under
section 53101 of this title. For complete classification of
this Act to the Code, see Short Title of 1936 Amendment note set out under section 101 of this title and
Tables.

§ 57502. Construction, reconditioning, and remodeling of vessels
(a) IN GENERAL.—The Secretary of Transportation may have new vessels constructed, and
have old vessels reconditioned or remodeled, as
the Secretary determines necessary to carry out
the objectives of this subtitle.
(b) PLACE OF WORK.—Construction, reconditioning, and remodeling of vessels under subsection (a) shall take place in shipyards in the
continental United States (including Alaska and
Hawaii). However, if satisfactory contracts cannot be obtained from private shipbuilders, the
Secretary may have the work done in navy
yards.
(c) APPLICABILITY OF CONSTRUCTION-DIFFERENTIAL SUBSIDY PROVISIONS.—Contracts for the
1 So

in original. Probably should be followed by a period.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 702, 49 Stat. 2008;
Pub. L. 85–191, Aug. 28,
1957, 71 Stat. 471; Pub. L.
86–624, § 35(c), July 12, 1960,
74 Stat. 421; Pub. L. 97–31,
§ 12(104), Aug. 6, 1981, 95
Stat. 162.
June 29, 1936, ch. 858, title
VII, § 703(b), 49 Stat. 2008.

In subsection (b), the words ‘‘for such new construction or reconstruction, in accordance with the provisions of this chapter’’ are omitted as unnecessary.
REFERENCES IN TEXT
The Merchant Marine Act, 1936, referred to in subsec.
(c), is act June 29, 1936, ch. 858, 49 Stat. 1985. Title V of
the Act enacted provisions set out as notes under section 53101 of this title. For complete classification of
this Act to the Code, see Short Title of 1936 Amendment note set out under section 101 of this title and
Tables.

§ 57503. Competitive bidding
(a) ADVERTISEMENT AND BIDDING.—The Secretary of Transportation may make a contract
with a private shipbuilder for the construction
of a new vessel, or for the reconstruction or reconditioning of an existing vessel, only after due
advertisement and upon sealed competitive bids.
(b) OPENING OF BIDS.—Bids required under this
section shall be opened at the time and place
stated in the advertisement for bids. All interested persons, including representatives of the
press, shall be permitted to attend. The results
of the bidding shall be publicly announced.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

57503(a) ......

46 App.:1193(a).

57503(b) ......

46 App.:1193(c) (related to construction, reconstruction, or reconditioning).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 703(a), (c) (related to
construction, reconstruction, or reconditioning),
49 Stat. 2008; Pub. L. 97–31,
§ 12(105), Aug. 6, 1981, 95
Stat. 163.

In subsection (b), the words ‘‘Bids required under this
section’’ are substituted for ‘‘All bids required by the
Secretary of Transportation for the construction, reconstruction, or reconditioning of vessels’’ to eliminate
unnecessary words. The word ‘‘hour’’ is omitted as covered by ‘‘time’’.

§ 57504. Charter or sale of vessels acquired by
Department of Transportation
Vessels transferred to or otherwise acquired
by the Department of Transportation in any

Page 399

manner may be chartered or sold by the Secretary of Transportation as provided in this
chapter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
HISTORICAL AND REVISION NOTES
Revised
Section
57504 ..........

§ 57511

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1194.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 704, 49 Stat. 2008;
Apr. 1, 1937, ch. 64, 50 Stat.
57; Pub. L. 97–31, § 12(106),
Aug. 6, 1981, 95 Stat. 163.

§ 57505. Employment of vessels on foreign trade
routes
(a) IN GENERAL.—The Secretary of Transportation shall arrange for the employment of the
Department of Transportation’s vessels in
steamship lines on such trade routes, exclusively serving the foreign trade of the United
States, as the Secretary determines are essential for the development and maintenance of the
commerce of the United States and the national
defense. However, the Secretary shall first determine that those routes are not being adequately served by existing steamship lines privately owned and operated by citizens of the
United States and documented under the laws of
the United States.
(b) POLICY TO ENCOURAGE PRIVATE OPERATION.—The Secretary shall have a policy of encouraging private operation of each essential
steamship line now owned by the United States
Government by—
(1) selling the line to a citizen of the United
States; or
(2) demising the Secretary’s vessels on bareboat charter to citizens of the United States
who agree to maintain the line in the manner
provided in this chapter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
HISTORICAL AND REVISION NOTES

tation for less than the price specified in this
section.
(b) OPERATION IN FOREIGN TRADE.—If the vessel
is to be operated in foreign trade, the minimum
price is the estimated foreign construction cost
(exclusive of national defense features) determined as of the date the construction contract
is executed, less depreciation under subsection
(d).
(c) OPERATION IN DOMESTIC TRADE.—If the vessel is to be operated in domestic trade, the minimum price is the cost of construction in the
United States (exclusive of national defense features), less depreciation under subsection (d).
(d) DEPRECIATION.—Depreciation under subsections (b) and (c) shall be based on—
(1) a 25-year life for dry-cargo and passenger
vessels; and
(2) a 20-year life for tankers and other bulk
liquid carrier vessels.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

57506 ..........

46 App.:1195 (last
sentence).

46 App.:1125 note.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 705 (last sentence),
as added Aug. 4, 1939, ch.
417, § 11(a), 53 Stat. 1185;
Pub. L. 86–518, § 1, June 12,
1960, 74 Stat. 216; Pub. L.
97–31, § 12(107), Aug. 6, 1981,
95 Stat. 163.
Pub. L. 86–518, § 9, June 12,
1960, 74 Stat. 217.

Subsection (d) is substituted for ‘‘less depreciation
based on a twenty-five year life’’ because of section 9 of
Public Law 86–518 (June 12, 1960, 74 Stat. 217), which
provided that ‘‘Nothing in any amendment made by
this Act [including section 1 substituting ‘twenty-five’
for ‘twenty’ in 46 App. U.S.C. 1195] shall operate or be
interpreted to change from twenty to twenty-five years
the provisions of the Merchant Marine Act, 1936, as
amended, relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk
carrier.’’
REFERENCES IN TEXT

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

57505(a) ......

46 App.:1195 (1st sentence).

June 29, 1936, ch. 858, title
VII, § 705 (1st, 2d sentences), 49 Stat. 2009; Pub.
L. 97–31, § 12(107), Aug. 6,
1981, 95 Stat. 163.

57505(b) ......

46 App.:1195 (2d sentence).

The Merchant Marine Act, 1936, referred to in subsec.
(a), is act June 29, 1936, ch. 858, 49 Stat. 1985, which enacted provisions set out as notes under section 53101 of
this title. For complete classification of this Act to the
Code, see Short Title of 1936 Amendment note set out
under section 101 of this title and Tables.

SUBCHAPTER II—CHARTERS
In subsection (a), the words ‘‘As soon as practicable
after June 29, 1936, and continuing thereafter’’ are
omitted as obsolete. The words ‘‘However, the Secretary shall first determine that those routes are not
being adequately served’’ are substituted for ‘‘Provided,
That such needs are not being adequately served’’ for
clarity and because provisos are disfavored in modern
drafting.
In subsection (b)(1), the words ‘‘in the manner provided in section 7 of the Merchant Marine Act, 1920 [46
App. U.S.C. 866], and in strict accordance with the provisions of section 5 of said Act’’ are omitted because
section 5 of that Act was repealed in 1988, and section
7 is being repealed as obsolete by this bill without
being restated.

§ 57506. Minimum selling price of vessels
(a) IN GENERAL.—A vessel constructed under
this subtitle or the Merchant Marine Act, 1936,
may not be sold by the Secretary of Transpor-

§ 57511. Demise charters
A charter by the Secretary of Transportation
under this chapter shall demise the vessel to the
charterer subject to all usual conditions contained in a bareboat charter. The charter shall
be for a term the Secretary considers to be in
the best interest of the United States Government and the merchant marine.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)
HISTORICAL AND REVISION NOTES
Revised
Section
57511 ..........

Source (U.S. Code)
46 App.:1201.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 711, 49 Stat. 2010;
Pub. L. 97–31, § 12(113),
Aug. 6, 1981, 95 Stat. 163.

§ 57512

TITLE 46—SHIPPING

The words ‘‘for a term the Secretary considers to be’’
are substituted for ‘‘until January 1, 1940, shall be for
terms of three years or less as the Secretary of Transportation may decide: Provided, That after January 1,
1940, charters may be executed by the Secretary of
Transportation for such terms as the experience gained
by the Secretary of Transportation shall indicate are’’
to eliminate unnecessary and obsolete words.

§ 57512. Competitive bidding
(a) IN GENERAL.—The Secretary of Transportation may charter a vessel of the Department
of Transportation to a private operator only on
the basis of competitive sealed bidding. The bids
must be submitted in strict compliance with the
terms and conditions of a public advertisement
soliciting the bids.
(b) ADVERTISEMENT FOR BIDS.—An advertisement for bids shall state—
(1) the number, type, and tonnage of the vessels being offered for bareboat charter for operation as a steamship line on a designated
trade route;
(2) the minimum number of sailings required;
(3) the length of time of the charter;
(4) the right of the Secretary to reject all
bids; and
(5) other information the Secretary considers necessary for the information of prospective bidders.
(c) OPENING OF BIDS.—Bids required under this
section shall be opened at the time and place
stated in the advertisement for bids. All interested persons, including representatives of the
press, shall be permitted to attend. The results
of the bidding shall be publicly announced.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)
HISTORICAL AND REVISION NOTES
Revised
Section
57512(a) ......

57512(b) ......

57512(c) ......

Page 400

offered is lower than the minimum charter hire
would be if the vessel were chartered under section 57531 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

57513 ..........

46 App.:1196(b) (last
sentence).

June 29, 1936, ch. 858, title
VII, § 706(b) (last sentence), as added Aug. 4,
1939, ch. 417, § 11(b), 53
Stat. 1186; Pub. L. 97–31,
§ 12(108), Aug. 6, 1981, 95
Stat. 163.

REFERENCES IN TEXT
The Merchant Marine Act, 1936, referred to in text, is
act June 29, 1936, ch. 858, 49 Stat. 1985, which enacted
provisions set out as notes under section 53101 of this
title. For complete classification of this Act to the
Code, see Short Title of 1936 Amendment note set out
under section 101 of this title and Tables.

§ 57514. Qualifications of bidders
(a) CONSIDERATIONS.—In deciding whether to
award a charter to a bidder, the Secretary of
Transportation shall consider—
(1) the bidder’s financial resources, credit
standing, and practical experience in operating vessels; and
(2) other factors a prudent business person
would consider in entering into a transaction
involving a large capital investment.
(b) DISQUALIFICATIONS.—The Secretary may
not charter a vessel to a person appearing to
lack sufficient capital, credit, and experience to
operate the vessel successfully over the period
covered by the charter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)
HISTORICAL AND REVISION NOTES

Source (U.S. Code)
46 App.:1196(a) (1st
sentence).

46 App.:1196(a) (last
sentence), (b) (1st
sentence related
to announcement).
46 App.:1193(c) (related to chartering).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 706(a), (b) (1st sentence
related
to
announcement),
49
Stat.
2009;
Pub.
L.
97–31,
§ 12(108), Aug. 6, 1981, 95
Stat. 163.

Revised
Section
57514 ..........

Source (U.S. Code)
46 App.:1203.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 713, 49 Stat. 2010;
Pub. L. 97–31, § 12(115),
Aug. 6, 1981, 95 Stat. 164.

§ 57515. Awarding of charters

June 29, 1936, ch. 858, title
VII, § 703(c) (related to
chartering), 49 Stat. 2008;
Pub. L. 97–31, § 12(105),
Aug. 6, 1981, 95 Stat. 163.

Subsection (b)(4) is substituted for ‘‘announce in his
advertisements for bids that the Secretary of Transportation reserves the right to, reject any and all bids submitted’’ in 46 App. U.S.C. 1196(b) to improve the organization.
In subsection (c), the words ‘‘Bids required under this
section’’ are substituted for ‘‘All bids required by the
Secretary of Transportation . . . and for the chartering
of the Secretary’s vessels hereinafter provided for’’ to
eliminate unnecessary words. The word ‘‘hour’’ is omitted as covered by ‘‘time’’.

§ 57513. Minimum bid
The Secretary of Transportation shall reject
any bid for the charter under this subchapter of
a vessel constructed under this subtitle or the
Merchant Marine Act, 1936, if the charter hire

(a) IN GENERAL.—The Secretary of Transportation shall award the charter to the bidder proposing to pay the highest monthly charter hire.
However, the Secretary may reject the highest
or most advantageous or any other bid if the
Secretary considers the charter hire offered too
low or determines that the bidder lacks the
qualifications required by section 57514 of this
title.
(b) HIGHEST BID REJECTED.—If the Secretary
rejects the highest bid, the Secretary may—
(1) award the charter to the next highest bidder; or
(2) reject all bids and either readvertise the
line or operate the line until conditions appear
more favorable to reoffer the line for private
charter.
(c) REASON FOR REJECTION.—On request of a
bidder, the reason for rejection shall be stated in
writing to the bidder.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1667.)

Page 401
HISTORICAL AND REVISION NOTES
Revised
Section
57515 ..........

§ 57520

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1196(b) (1st
sentence related
to authority).

HISTORICAL AND REVISION NOTES

Source (Statutes at Large)

Revised
Section

June 29, 1936, ch. 858, title
VII, §§ 706(b) (1st sentence
related to authority), 707,
49 Stat. 2009; Pub. L. 97–31,
§ 12(108), (109), Aug. 6, 1981,
95 Stat. 163.

57517 ..........

Source (U.S. Code)
46 App.:1199.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 709, 49 Stat. 2010;
Pub. L. 97–31, § 12(111),
Aug. 6, 1981, 95 Stat. 163.

46 App.:1197.

§ 57518. Performance bond
In subsection (a), the words ‘‘if the Secretary considers the charter hire offered too low’’ are substituted for
‘‘if, in the Secretary’s discretion, the charter hire offered is deemed too low’’ to eliminate unnecessary
words. The words ‘‘lacks the qualifications required by
section 57514 of this title’’ are substituted for ‘‘lacks
sufficient capital, credit, or experience to operate successfully the line’’ to avoid repeating the qualifications
in more than one place.

§ 57516. Operating-differential subsidies
If the Secretary of Transportation considers it
necessary, the Secretary may make a contract
with a charterer of a vessel owned by the Secretary for payment of an operating-differential
subsidy, on the same terms and conditions, and
subject to the same limitations and restrictions,
as otherwise provided with respect to payment
of operating-differential subsidies to operators
of privately-owned vessels.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1667.)
HISTORICAL AND REVISION NOTES
Revised
Section
57516 ..........

Source (U.S. Code)
46 App.:1198.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 708, 49 Stat. 2009;
June 23, 1938, ch. 600, § 31,
52 Stat. 962; Pub. L. 97–31,
§ 12(110), Aug. 6, 1981, 95
Stat. 163.

§ 57517. Recovery of excess profits
(a) IN GENERAL.—A charter under this chapter
shall provide that if, at the end of a calendar
year subsequent to the execution of the charter,
the cumulative net voyage profit (after payment
of the charter hire reserved in the charter and
payment of the charterer’s fair and reasonable
overhead expenses applicable to operation of the
chartered vessel) exceeds 10 percent a year of
the charterer’s capital necessarily employed in
the business of the chartered vessel, the charterer shall pay to the Secretary of Transportation, as additional charter hire, half the cumulative net voyage profit in excess of 10 percent a year. However, any cumulative net voyage profit accounted for under this subsection is
not to be included in the calculation of cumulative net voyage profit in any subsequent year.
(b) TERMS TO BE DEFINED AND USED.—The Secretary shall define the terms ‘‘net voyage profit’’, ‘‘fair and reasonable overhead expenses’’,
and ‘‘capital necessarily employed’’ for this section. Each advertisement for bids and each charter shall contain these definitions, stating the
formula for determining each of these three
amounts.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1667.)

The Secretary of Transportation shall require
a charterer of a vessel of the Secretary to deposit with the Secretary an undertaking, with
approved sureties, in such amount as the Secretary may require as security for the faithful
performance of the terms of the charter, including indemnity against liens on the chartered
vessel.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1667.)
HISTORICAL AND REVISION NOTES
Revised
Section
57518 ..........

Source (U.S. Code)
46 App.:1200.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 710, 49 Stat. 2010;
Pub. L. 97–31, § 12(112),
Aug. 6, 1981, 95 Stat. 163.

§ 57519. Insurance
A charter under this chapter shall require the
charterer to carry, at the charterer’s expense,
insurance on the chartered vessel covering all
marine and port risks, protection and indemnity
risks, and all other hazards and liabilities, adequate to cover damages claimed against and
losses sustained by the chartered vessel arising
during the term of the charter. The insurance
shall be in such form, in such amount, and with
such companies as the Secretary of Transportation may require. In accordance with law, any
of the insurance risks may be underwritten by
the Secretary.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1667.)
HISTORICAL AND REVISION NOTES
Revised
Section
57519 ..........

Source (U.S. Code)
46 App.:1202(a).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 712(a), 49 Stat. 2010;
Aug. 7, 1939, ch. 555, § 1, 53
Stat. 1254; Pub. L. 97–31,
§ 12(114), Aug. 6, 1981, 95
Stat. 163.

§ 57520. Vessel maintenance
(a) IN GENERAL.—A charter under this chapter
shall require the charterer, at the charterer’s
expense, to—
(1) keep the chartered vessel in good repair
and efficient operating condition; and
(2) make any repairs required by the Secretary of Transportation.
(b) INSPECTION.—The charter shall provide
that the Secretary has the right to inspect the
vessel at any time to ascertain its condition.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1668.)

§ 57521

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
57520 ..........

Source (U.S. Code)
46 App.:1202(b), (c).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 712(b), (c), 49 Stat.
2010; Aug. 7, 1939, ch. 555,
§ 1, 53 Stat. 1254; Pub. L.
97–31, § 12(114), Aug. 6, 1981,
95 Stat. 163.

§ 57521. Termination of charter during national
emergency
A charter under this chapter shall provide
that during a national emergency proclaimed by
the President or a period for which the President has proclaimed that the security of the national defense makes it advisable, the Secretary
of Transportation may terminate the charter
without cost to the United States Government
on such notice to the charterer as the President
determines.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1668.)
HISTORICAL AND REVISION NOTES
Revised
Section
57521 ..........

Source (U.S. Code)
46 App.:1202(d).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 712(d), 49 Stat. 2010;
Aug. 7, 1939, ch. 555, § 1, 53
Stat. 1254; Pub. L. 97–31,
§ 12(114), Aug. 6, 1981, 95
Stat. 163.

SUBCHAPTER III—MISCELLANEOUS
§ 57531. Construction and charter of vessels for
unsuccessful routes
(a) IN GENERAL.—If the Secretary of Transportation finds that a trade route determined to be
essential under section 50103 of this title cannot
be successfully developed and maintained and
the Secretary’s replacement program cannot be
achieved under private operation of the trade
route by a citizen of the United States with vessels documented under chapter 121 of this title,
without further aid by the United States Government in addition to the financial aid authorized under titles V and VI of the Merchant Marine Act, 1936, the Secretary, without advertisement or competition, may—
(1) have constructed, in private shipyards or
in navy yards, vessels of the types necessary
for the trade route; and
(2) demise charter those new vessels to the
operator of vessels of the United States established on the trade route.
(b) AMOUNT OF CHARTER HIRE.—
(1) IN GENERAL.—The annual charter hire
under subsection (a) shall be at least 4 percent
of the price (referred to in this section as the
‘‘foreign cost’’) at which the vessel would be
sold if constructed under title V of the Merchant Marine Act, 1936, plus—
(A) a percentage of the depreciated foreign
cost computed annually determined by the
Secretary of the Treasury, taking into consideration the current average market yield
on outstanding marketable obligations of
the Government with remaining periods to
maturity comparable to the term of the
charter, adjusted to the nearest one-eighth
percent; and

Page 402

(B) an allowance adequate in the judgment
of the Secretary of Transportation to cover
administrative costs.
(2) DEPRECIATION.—Depreciation under paragraph (1)(A) shall be based on—
(A) a 25-year life for dry-cargo and passenger vessels; and
(B) a 20-year life for tankers and other
bulk liquid carrier vessels.
(c) OPTION TO PURCHASE.—The charter may
contain an option to the charterer to purchase
the vessels from the Secretary of Transportation within 5 years after delivery under the
charter, on the same terms and conditions as
provided in title V of the Merchant Marine Act,
1936, for the purchase of new vessels from the
Secretary. However—
(1) the purchase price shall be the foreign
cost less depreciation to the date of purchase
based on the useful life specified in subsection
(b)(2);
(2) the required cash payment payable at the
time of the purchase shall be 25 percent of the
purchase price;
(3) the charter may provide that any part of
the charter hire paid in excess of the minimum charter hire provided for in this section
may be credited against the cash payment
payable at the time of the purchase;
(4) the balance of the purchase price shall be
paid within the remaining years of useful life
(as specified in subsection (b)(2)) after the date
of delivery of the vessel under the charter and
in approximately equal annual installments,
except that the first installment, which shall
be payable on the next ensuing anniversary
date of the delivery under the charter, shall be
a proportionate part of the annual installment; and
(5) interest shall be payable on the unpaid
balances from the date of purchase, at a rate
not less than—
(A) a rate determined by the Secretary of
the Treasury, taking into consideration the
current average market yield on outstanding marketable obligations of the Government with remaining periods to maturity
comparable to the average maturities of the
loans, adjusted to the nearest one-eighth
percent; plus
(B) an allowance adequate in the judgment
of the Secretary of Transportation to cover
administrative costs.
(d) OPERATION OF VESSEL.—
(1) PERMISSIBLE VOYAGES.—The charter shall
provide for operation of the vessel exclusively—
(A) in foreign trade;
(B) on a round-the-world voyage;
(C) on a round voyage from the west coast
of the United States to a European port that
includes an intercoastal port of the United
States;
(D) on a round voyage from the Atlantic
coast of the United States to the Orient that
includes an intercoastal port of the United
States; or
(E) on a voyage in foreign trade on which
the vessel may stop at Hawaii or an island
territory or possession of the United States.

Page 403

(2) DOMESTIC TRADE.—The charter shall provide if the vessel is operated in domestic trade
on any of the services specified in paragraph
(1), the charterer will pay annually to the Secretary of Transportation that proportion of 1⁄25
of the difference between the domestic and foreign cost of the vessel as the gross revenue derived from the domestic trade bears to the
gross revenue derived from the entire voyages
completed during the preceding year.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1668.)
HISTORICAL AND REVISION NOTES
Revised
Section
57531 ..........

§ 57533

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1204.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 714, 49 Stat. 2011;
June 23, 1938, ch. 600, § 32,
52 Stat. 962; Aug. 4, 1939,
ch. 417, § 12, 53 Stat. 1186;
Pub. L. 86–3, § 18(b)(3),
Mar. 18, 1959, 73 Stat. 12;
Pub. L. 86–518, § 5, June 12,
1960, 74 Stat. 216; Pub. L.
91–469, § 22, Oct. 21, 1970, 84
Stat. 1032; Pub. L. 97–31,
§ 12(116), Aug. 6, 1981, 95
Stat. 164.

tering and general agency operations. Not more
than 10 vessels may be operated and tested
under this section in any one year.
(c) TERMS OF OPERATION.—Operation of a vessel under this section shall be on terms the Secretary considers appropriate to carry out the
purposes of this subtitle. A bareboat charter
under this section shall be at reasonable rates
and include restrictions the Secretary considers
appropriate to protect the public interest, including provisions for recapture of profits under
section 57517 of this title. A charter or general
agency agreement under this section shall be reviewed annually to determine whether conditions exist to justify continuance of the charter
or agreement.
(d) RIGHTS OF SEAMEN.—A seaman engaged in
vessel operations of the Secretary under this
section and employed through a general agent in
connection with a charter or agreement under
this section is entitled to all the rights and remedies provided in sections 1(a) and (c), 3(c), and
4 of the Act of March 24, 1943 (50 App. U.S.C.
1291(a), (c), 1293(c), 1294).
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1670.)

In subsection (a)(2), the words ‘‘demise charter’’ are
substituted for ‘‘demise . . . or bare-boat charter’’ to
eliminate unnecessary words. The words ‘‘operator of
vessels of the United States’’ are substituted for
‘‘American-flag operator’’ for consistency in the revised title.
Subsection (b)(2) is substituted for ‘‘Upon the basis of
a twenty-five year life of the vessel’’ because of section
9 of Public Law 86–518 (June 12, 1960, 74 Stat. 217), which
provided that ‘‘Nothing in any amendment made by
this Act [including section 5 substituting ‘twenty-five’
for ‘twenty’ in 46 App. U.S.C. 1204] shall operate or be
interpreted to change from twenty to twenty-five years
the provisions of the Merchant Marine Act, 1936, as
amended, relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk
carrier.’’
In subsection (c), in paragraphs (1) and (4), references
to the useful life specified in subsection (b)(2) are substituted for references to the twenty-five year useful
life for the reason stated in explaining subsection
(b)(2).
REFERENCES IN TEXT
The Merchant Marine Act, 1936, referred to in subsecs. (a), (b)(1), (c), is act June 29, 1936, ch. 858, 49 Stat.
1985. Titles V and VI of the Act enacted provisions set
out as notes under section 53101 of this title. For complete classification of this Act to the Code, see Short
Title of 1936 Amendment note set out under section 101
of this title and Tables.

HISTORICAL AND REVISION NOTES
Revised
Section
57532 ..........

46 App.:1205.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VII, § 715, as added July 11,
1956, ch. 574, 70 Stat. 531;
Pub. L. 97–31, § 12(117),
Aug. 6, 1981, 95 Stat. 164.

Subsection (d) is substituted for ‘‘Those provisions of
law prescribed or incorporated under section 1241a of
this Appendix, which relate to vessel operating activities of the Secretary of Transportation and to employment of seamen through general agents, shall be applicable in connection with charters and agreements entered into under this section’’ for clarity.

§ 57533. Vessel chartering authority
The Secretary of Transportation may enter
into contracts or other agreements on behalf of
the United States to purchase, charter, operate,
or otherwise acquire the use of any vessels documented under chapter 121 of this title and any
other related real or personal property. The Secretary is authorized to use this authority as the
Secretary deems appropriate.
(Added Pub. L. 110–181, div. C, title XXXV,
§ 3511(a), Jan. 28, 2008, 122 Stat. 593.)
PART G—RESTRICTIONS AND PENALTIES

§ 57532. Operation of experimental vessels
(a) DEFINITION.—In this section, the term
‘‘experimental vessel’’ means a vessel owned by
the United States Government (including a vessel in the National Defense Reserve Fleet) that
has been constructed, reconditioned, or remodeled for experimental or testing purposes.
(b) AUTHORITY TO OPERATE.—The Secretary of
Transportation, for the purpose of practical development, trial, and testing, may operate an
experimental vessel under a bareboat charter or
general agency agreement in the foreign or domestic trade of the United States or for use for
the account of a department or agency of the
Government, without regard to other provisions
of this subtitle and other laws related to char-

Source (U.S. Code)

CHAPTER 581—RESTRICTIONS AND
PENALTIES
Sec.

58101.
58102.
58103.
58104.
58105.
58106.
58107.

Operating in domestic intercoastal or coastwise service.
Default on payment or maintenance of reserves.
Employing another person as managing or operating agent.
Willful violation constitutes breach of contract or charter.
Preferences for cargo in which charterer has
interest.
Concerted discriminatory activities.
Discrimination at ports by water common
carriers.

§ 58101

TITLE 46—SHIPPING

Sec.

58108.
58109.

Charges for transportation subject to subtitle
IV of title 49.
Penalties.

§ 58101. Operating in domestic intercoastal or
coastwise service
(a) PROHIBITION.—A subsidy may not be awarded or paid to a contractor under the operatingdifferential subsidy program, and a vessel may
not be chartered to a person under chapter 575 of
this title, if the contractor or charterer, or a
holding company, subsidiary, affiliate, or associate of the contractor or charterer, or an officer,
director, agent, or executive thereof, directly or
indirectly—
(1) owns, charters, or operates a vessel engaged in the domestic intercoastal or coastwise service; or
(2) owns a pecuniary interest in a person
that owns, charters, or operates a vessel in the
domestic intercoastal or coastwise service.
(b) WAIVER.—A person may apply to the Secretary of Transportation for a waiver of subsection (a). Before deciding on the waiver, the
Secretary shall give the applicant and other interested persons an opportunity for a hearing.
The Secretary may not grant the waiver if the
Secretary finds it would—
(1) result in unfair competition to a person
operating exclusively in the domestic intercoastal or coastwise service; or
(2) be prejudicial to the objectives and policy
of this subtitle.
(c) CONTINUOUS OPERATION SINCE 1935.—The
Secretary shall grant an application under subsection (b) without requiring further proof that
the public interest and convenience will be
served and without further proceedings as to the
competition in the route or trade, if the contractor or other person, or a predecessor in interest, was in bona-fide operation as a common
carrier by water in the domestic intercoastal or
coastwise trade in 1935 over the route or in the
trade for which the application is made and has
so operated since that time or, if engaged in furnishing seasonal service only, was in bona-fide
operation in 1935 during the season ordinarily
covered by its operation, except in either event
as to interruptions of service over which the applicant or its predecessor in interest had no control.
(d) DIVERSION INTO INTERCOASTAL OR COASTWISE OPERATIONS.—If an application under subsection (b) is approved, a person referred to in
this section may not divert, directly or indirectly, money, property, or any other thing of
value, used in a foreign-trade operation for
which a subsidy is paid by the United States
Government, into intercoastal or coastwise operations.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1670.)
HISTORICAL AND REVISION NOTES
Revised
Section
58101 ..........

Source (U.S. Code)
46 App.:1223(a).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VIII, § 805(a), 49 Stat. 2012;
Pub. L. 97–31, § 12(122),
Aug. 6, 1981, 95 Stat. 164;
Pub. L. 104–239, § 4(b)(1),
Oct. 8, 1996, 110 Stat. 3131.

Page 404

In this chapter, references to the ‘‘operating-differential subsidy program’’ are substituted for references to
‘‘part A of subchapter VI of this chapter’’, meaning 46
App. U.S.C. 1171–1185a, because part A of subchapter VI
contains the operating-differential subsidy program
and under 46 App. U.S.C. 1185a that program is being
phased out. Consequently, part A is being omitted from
the revised title and will instead appear as a note under
section 53101, except for 46 App. U.S.C. 1177 and 1177–l
which are restated in chapter 535. References to ‘‘chapter 575 of this title’’ are substituted for references to
‘‘subchapter VII of this chapter’’, meaning 46 App.
U.S.C. 1191–1205, because those sections are restated in
chapter 575.
In subsection (b), the words ‘‘A person may apply to
the Secretary of Transportation for a waiver of subsection (a). Before deciding on the waiver, the Secretary shall give the applicant and other interested
persons an opportunity for a hearing.’’ are substituted
for ‘‘without the written permission of the Secretary of
Transportation. Every person, firm, or corporation having any interest in such application shall be permitted
to intervene and the Secretary of Transportation shall
give a hearing to the applicant and the intervenors.’’
for clarity.
In subsection (c), the words ‘‘domestic intercoastal or
coastwise trade’’ are substituted for ‘‘domestic, intercoastal, or coastwise trade’’ for consistency in the section.
In subsection (d), the words ‘‘and whosoever shall violate this provision shall be guilty of a misdemeanor’’
are omitted because section 3559 of title 18 provides for
the classification of offenses. See the revision notes for
section 58109 of the revised title.

§ 58102. Default on payment or maintenance of
reserves
The Secretary of Transportation may supervise the number and compensation of all officers
and employees of a contractor under the operating-differential subsidy program or a charterer
under chapter 575 of this title, receiving an operating-differential subsidy, if the contractor or
charterer—
(1) is in default on a mortgage, note, purchase contract, or other obligation to the Secretary; or
(2) has not maintained, in a manner satisfactory to the Secretary, all of the reserves provided for in this subtitle.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1671.)
HISTORICAL AND REVISION NOTES
Revised
Section
58102 ..........

Source (U.S. Code)
46 App.:1223(b).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VIII, § 805(b), 49 Stat. 2012;
Pub. L. 97–31, § 12(122),
Aug. 6, 1981, 95 Stat. 164;
Pub. L. 104–239, § 4(b)(2),
Oct. 8, 1996, 110 Stat. 3131.

The words ‘‘contractor under the operating-differential subsidy program or a charterer under chapter 575 of
this title, receiving an operating-differential subsidy’’
are substituted for ‘‘contractor under part A of subchapter VI of this chapter or subchapter VII of this
chapter receiving an operating-differential subsidy’’ for
the reasons explained under section 58101.

§ 58103. Employing another person as managing
or operating agent
(a) PROHIBITION.—Except with the written consent of the Secretary of Transportation, a contractor holding a contract under the operatingdifferential subsidy program or under chapter
575 of this title may not—

Page 405

(1) employ another person as the managing
or operating agent of the operator; or
(2) charter a vessel, on which an operatingdifferential subsidy is to be paid, for operation
by another person.
(b) APPLICABILITY OF PROVISIONS TO CHARTERER.—If a charter prohibited by this section is
made, the person operating the chartered vessel
is subject to all the provisions of this subtitle
and the operating-differential subsidy program,
including limitations of profits and salaries.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1671.)
HISTORICAL AND REVISION NOTES
Revised
Section
58103 ..........

Source (U.S. Code)
46 App.:1223(d).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VIII, § 805(d), 49 Stat. 2013;
June 23, 1938, ch. 600, §§ 36,
37, 52 Stat. 963; Pub. L.
91–603, § 4(e), Dec. 31, 1970,
84 Stat. 1675; Pub. L. 97–31,
§ 12(122), Aug. 6, 1981, 95
Stat. 164; Pub. L. 104–239,
§ 4(b)(2), Oct. 8, 1996, 110
Stat. 3131.

In subsection (a), the words ‘‘contractor holding a
contract under the operating-differential subsidy program or under chapter 575 of this title’’ are substituted
for ‘‘contractor holding a contract authorized under
part A of subchapter VI or VII of this chapter’’ for the
reasons explained under section 58101.

§ 58104. Willful violation constitutes breach of
contract or charter
A willful violation of any provision of sections
58101–58103 of this title constitutes a breach of
the contract or charter. On determining that a
violation has occurred, the Secretary of Transportation may declare the contract or charter
rescinded.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1672.)
HISTORICAL AND REVISION NOTES
Revised
Section
58104 ..........

§ 58107

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1223(f).

HISTORICAL AND REVISION NOTES
Revised
Section
58105 ..........

Source (U.S. Code)
46 App.:1226.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VIII, § 808, 49 Stat. 2015.

The words ‘‘and whosoever shall violate this provision shall be guilty of a misdemeanor’’ are omitted because section 3559 of title 18 provides for the classification of offenses. See the revision notes for section 58109
of the revised title.

§ 58106. Concerted discriminatory activities
(a) PROHIBITION.—A contractor receiving an
operating-differential subsidy, or a charterer
under chapter 575 of this title, may not continue
as a party to or conform to an agreement with
another carrier by water, or engage in a practice
in concert with another carrier by water, that is
unjustly discriminatory or unfair to any other
citizen of the United States operating a common
carrier by water employing only vessels documented under the laws of the United States on
an established trade route from and to a United
States port.
(b) GOVERNMENT PAYMENT PROHIBITED.—No
payment or subsidy of any kind may be paid, directly or indirectly, out of funds of the United
States Government to a contractor or charterer
that has violated subsection (a).
(c) CIVIL ACTION.—A person whose business or
property is injured by a violation of subsection
(a) may bring a civil action in the district court
of the United States for the district in which the
defendant resides, is found, or has an agent. If
the person prevails, the person shall be awarded—
(1) 3 times the damages; and
(2) costs, including reasonable attorney fees.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1672.)
HISTORICAL AND REVISION NOTES
Revised
Section
58106 ..........

Source (U.S. Code)
46 App.:1227.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VIII, § 810, 49 Stat. 2015.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VIII, § 805(f), 49 Stat. 2014;
Pub. L. 97–31, § 12(122),
Aug. 6, 1981, 95 Stat. 164.

The words ‘‘in force under this chapter’’ and ‘‘forthwith’’ are omitted as unnecessary. The words ‘‘and any
person willfully violating the provisions of this section
shall be guilty of a misdemeanor’’ are omitted because
section 3559 of title 18 provides for the classification of
offenses. See the revision notes for section 58109 of the
revised title.

§ 58105. Preferences for cargo in which charterer
has interest
A contractor receiving an operating-differential subsidy, or a charterer under chapter 575 of
this title, may not unjustly discriminate in any
manner so as to give preference, directly or indirectly, to cargo in which the contractor or charterer has a direct or indirect ownership, purchase, or vending interest.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1672.)

In subsection (b), the words ‘‘United States Government’’ are substituted for ‘‘United States or any agency of the United States’’ for consistency and to eliminate unnecessary words.
In subsection (c), the words ‘‘bring a civil action’’ are
substituted for ‘‘sue’’ for consistency in the revised
title. The words ‘‘without respect to the amount in
controversy’’ are omitted because section 1331 of title
28 no longer contains a requirement of any particular
amount in controversy for jurisdiction of civil actions
arising under the laws of the United States. The words
‘‘If the person prevails’’ are added for clarity.

§ 58107. Discrimination at ports by water common carriers
(a) PROHIBITION.—A common carrier by water
may not, directly or indirectly, through an
agreement, conference, association, understanding, or otherwise, prevent or attempt to prevent
any other common carrier by water from serving any port described in subsection (b) at the
same rates the first carrier charges at the nearest port already regularly served by it.
(b) PORTS.—A port referred to in subsection (a)
is one that is—

§ 58108

TITLE 46—SHIPPING

(1) designed for the accommodation of oceangoing vessels;
(2) located on an improvement project authorized by law or by a Federal agency; and
(3) located within the continental limits of
the United States.

Page 406
HISTORICAL AND REVISION NOTES

Revised
Section
58108 ..........

Source (U.S. Code)
46 App.:884.

(c) OTHER AUTHORITY NOT LIMITED.—This section does not limit the authority otherwise vested in the Secretary of Transportation and the
Federal Maritime Commission.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1672.)
HISTORICAL AND REVISION NOTES
Revised
Section
58107 ..........

Source (U.S. Code)
46 App.:1115.

Source (Statutes at Large)
June 29, 1936, ch. 858, title
II, § 205, 49 Stat. 1987; Pub.
L. 97–31, § 12(62), Aug. 6,
1981, 95 Stat. 159.

§ 58108. Charges for transportation subject to
subtitle IV of title 49
(a) PROHIBITION.—A carrier may not charge,
collect, or receive for transportation subject to
subtitle IV of title 49 of persons or property,
under any joint rate, fare, or charge, or under
any export, import, or other proportional rate,
fare, or charge, that is based in whole or in part
on the fact that the persons or property affected
are to be transported to, or have been transported from, a port in a territory or possession
of the United States or in a foreign country, by
a carrier by water in foreign commerce, any
lower rate, fare, or charge than the carrier
charges, collects, or receives for the transportation of persons or similar property for the
same distance, in the same direction, and over
the same route, in commerce wholly within the
United States, unless the vessel used for the
transportation is or was at the time of the
transportation documented under the laws of
the United States.
(b) SUSPENSION OF PROHIBITION.—Whenever the
Secretary of Transportation believes that adequate shipping facilities to or from any port in
a territory or possession of the United States or
a foreign country are not being provided by vessels documented under the laws of the United
States, the Secretary shall certify this fact to
the Surface Transportation Board. On receiving
the certification, the Board may by order suspend the operation of subsection (a) with respect
to the rates, fares, and charges for the transportation by rail of persons and property transported from or to be transported to those ports,
for such time and under such terms and conditions as the Secretary may specify in the order
or in any supplemental order.
(c) TERMINATION OF SUSPENSION.—Whenever
the Secretary believes that adequate shipping
facilities are being provided to those ports by
vessels documented under the laws of the United
States, and certifies that fact to the Board, the
Board may order the termination of the suspension.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1673.)

Source (Statutes at Large)
June 5, 1920, ch. 250, § 28, 41
Stat. 999; Ex. Ord. No.
6166, § 12, eff. June 10, 1933;
June 29, 1936, ch. 858,
§§ 204, 904, 49 Stat. 1987,
2016; Pub. L. 97–31, § 12(50),
Aug. 6, 1981, 95 Stat. 157;
Pub. L. 104–88, title III,
§ 321(3), Dec. 29, 1995, 109
Stat. 950.

The words ‘‘territory or possession’’ are substituted
for ‘‘possession or dependency’’ for consistency in the
revised title.

§ 58109. Penalties
(a) INDIVIDUALS.—An individual convicted of
violating section 58101(d), 58103, or 58105 of this
title shall be fined under title 18, imprisoned for
at least one year but not more than 5 years, or
both.
(b) ORGANIZATIONS.—An organization convicted of committing an act prohibited by this
subtitle shall be fined under title 18.
(c) INELIGIBILITY TO RECEIVE BENEFITS.—An
individual or organization convicted of violating
a section referred to in subsection (a) is ineligible, at the discretion of the Secretary of
Transportation, to receive any benefit under the
construction-differential subsidy or operatingdifferential subsidy programs, or a charter
under chapter 575 of this title, for 5 years after
the conviction.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1673.)
HISTORICAL AND REVISION NOTES
Revised
Section
58109 ..........

Source (U.S. Code)
46 App.:1228 (1st, 2d
pars.).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
VIII, § 806(b), (c), 49 Stat.
2014;
Pub.
L.
97–31,
§ 12(125), Aug. 6, 1981, 95
Stat. 164.

In subsection (a), the word ‘‘individual’’ is substituted for ‘‘natural person’’ for consistency in the revised title. The words ‘‘convicted of violating section
58101(d), 58103, or 58105 of this title’’ are substituted for
‘‘found guilty of any act or acts declared in this chapter to constitute a misdemeanor’’ because the sections
referred to restate the provisions which declare certain
acts to be misdemeanors and because the restatement
of those provisions does not use the word ‘‘misdemeanor’’. The words ‘‘in any district court of the
United States’’ are omitted as unnecessary. The words
‘‘shall be fined under title 18, imprisoned for at least
one year but not more than five years, or both’’ are
substituted for ‘‘shall be punished by a fine of not more
than $10,000, or by imprisonment for not less than one
year or more than five years, or by both fine and imprisonment’’ because of chapter 227 of title 18. See 18
U.S.C. 3559 (which classifies offenses based on the maximum term of imprisonment) and 3571 (which establishes fines based on those classifications).
In subsection (b), the word ‘‘organization’’ is substituted for ‘‘corporation’’ to reflect the probable intent that the penalty should apply to other organizations in addition to corporations. The words ‘‘convicted
of committing an act prohibited by this subtitle’’ are
substituted for ‘‘found guilty of any act or acts declared in this chapter to be unlawful’’ for clarity and
consistency. The words ‘‘shall be fined under title 18’’
are substituted for ‘‘shall be punished by a fine of not
more than $25,000’’ for consistency with subsection (a).
In subsection (c), the words ‘‘An individual or organization convicted of violating a section referred to in

Page 407

subsection (a)’’ are substituted for ‘‘any person or corporation convicted of a misdemeanor under the provisions of this chapter’’ for consistency in the section.
Reference to the Federal Maritime Commission is
omitted because the Commission does not administer
any of the provisions referred to.

Subtitle VI—Clearance, Tonnage
Taxes, and Duties
Chapter

601.
603.
605.

Sec.

Arrival and Departure Requirements .................................................. 60101
Tonnage Taxes and Light Money .... 60301
Discriminating Duties and Reciprocal Privileges ................................ 60501
PRIOR PROVISIONS

A prior subtitle VI, consisting of chapter 701, was redesignated subtitle VII of this title by Pub. L. 109–241,
title IX, § 901(k)(1), July 11, 2006, 120 Stat. 564. An identical amendment was made by Pub. L. 109–304, § 9(a),
Oct. 6, 2006, 120 Stat. 1674, prior to its repeal by Pub. L.
110–181, div. C, title XXXV, § 3529(c)(1), Jan. 28, 2008, 122
Stat. 603.

CHAPTER 601—ARRIVAL AND DEPARTURE
REQUIREMENTS
Sec.

60101.
60102.
60103.
60104.
60105.
60106.
60107.
60108.
60109.

Boarding arriving vessels before inspection.
Production of certificate on entry.
Oath of ownership on entry.
Depositing certificates of documentation
with consular officers.
Clearance of vessels.
State inspection laws.
Payment of fees on departing vessel.
Duty to transport tendered cargo.
Duty to transport money and securities of the
United States Government.

§ 60101. Boarding arriving vessels before inspection
(a) REGULATIONS.—The Secretary of Homeland
Security shall prescribe and enforce regulations
on the boarding of a vessel arriving at a port of
the United States before the vessel has been inspected and secured.
(b) CRIMINAL PENALTY.—A person violating a
regulation prescribed under this section shall be
fined under title 18, imprisoned for not more
than 6 months, or both.
(c) RELATIONSHIP TO OTHER LAW.—This section
shall be construed as supplementary to section
2279 of title 18.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1674.)
HISTORICAL AND REVISION NOTES
Revised
Section
60101 ..........

§ 60103

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:163.

Source (Statutes at Large)
Mar. 31, 1900, ch. 120, §§ 1–3,
31 Stat. 58.

In subsection (a), the Secretary of Homeland Security
is substituted for the Commissioner of Customs because
the functions of the Customs Service and of the Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub.
L. 107–296, 116 Stat. 2178). The functions of the Commissioner of Customs previously were vested in the Secretary of the Treasury under section 321(c) of title 31.
For prior related transfers of functions, see the transfer
of functions note under 46 App. U.S.C. 163. The word

‘‘shall’’ is substituted for ‘‘is authorized and directed
to’’ for consistency in the revised title and to eliminate
unnecessary words. The word ‘‘port’’ is substituted for
‘‘seaports’’ for consistency in the revised title. The
word ‘‘secured’’ is substituted for ‘‘placed in security’’
to eliminate unnecessary words. The words ‘‘from time
to time’’, ‘‘properly’’, and ‘‘and for that purpose to employ any of the officers of the United States Customs
Service’’ are omitted as unnecessary.
In subsection (b), the words ‘‘fined under title 18, imprisoned for not more than 6 months, or both’’ are substituted for ‘‘subject to a penalty of not more than $100
or imprisonment not to exceed six months, or both’’ because of chapter 227 of title 18. The words ‘‘in the discretion of the court’’ are omitted as unnecessary.
In subsection (c), the words ‘‘section 2279 of title 18’’
are substituted for ‘‘section forty-six hundred and six
of the Revised Statutes’’ in the Act of Mar. 31, 1900, because R.S. § 4606 (formerly classified to 46 U.S.C. 708
(1946 ed.)) was replaced by 18 U.S.C. 2279 in the codification of title 18 by the Act of June 25, 1948 (ch. 645, 62
Stat. 683). The words ‘‘section 9 of act August 2, 1882 (22
Stat. 189)’’ are omitted because that law was repealed
by section 4(b) of Public Law 98–89 (Aug. 26, 1983, 97
Stat. 600).

§ 60102. Production of certificate on entry
On entry of a vessel documented under chapter
121 of this title, the master or other individual
in charge of the vessel shall produce the certificate of documentation to the customs officer at
the place where the vessel is entered. If the certificate is not produced, the vessel is not entitled to the privileges of a documented vessel.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1674.)
HISTORICAL AND REVISION NOTES
Revised
Section
60102 ..........

Source (U.S. Code)
46 App.:57.

Source (Statutes at Large)
R.S. § 4184.

The words ‘‘vessel documented under chapter 121 of
this title’’ are substituted for ‘‘vessel, recorded in pursuance of title 48 of the Revised Statutes’’, and the
words ‘‘certificate of documentation’’ are substituted
for ‘‘certificate of such record’’, for consistency with
chapter 121 of title 46. The words ‘‘in charge’’ are substituted for ‘‘having the command or charge’’ to eliminate unnecessary words. The words ‘‘customs officer’’
are substituted for ‘‘collector of the district’’ because
the office of collector of customs was abolished by Reorganization Plan No. 1 of 1965. For additional requirements relating to entry of vessels, see 19 U.S.C. 1434.

§ 60103. Oath of ownership on entry
(a) REQUIRED STATEMENT.—On entry of a vessel
of the United States from a foreign port, the individual designated under subsection (b) shall
state under oath that—
(1) the vessel’s certificate of documentation
contains the names of all the owners of the
vessel; or
(2) part of the ownership has been transferred since the certificate was issued and, to
the best of the individual’s knowledge and belief, the vessel is still owned only by citizens
of the United States.
(b) PERSON TO MAKE STATEMENT.—The statement under subsection (a) shall be made by—
(1) an owner if one resides at the port of
entry; or
(2) the master if an owner does not reside at
the port of entry.
(c) CONSEQUENCE OF NOT MAKING STATEMENT.—
If the appropriate individual does not make the

§ 60104

TITLE 46—SHIPPING

Page 408

statement required by this section, the vessel is
not entitled to the privileges of a vessel of the
United States.

a civil penalty’’ are substituted for ‘‘liable to a penalty’’ for clarity and for consistency in the revised
title.

(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1674.)

§ 60105. Clearance of vessels

HISTORICAL AND REVISION NOTES
Revised
Section
60103 ..........

Source (U.S. Code)
46 App.:42.

Source (Statutes at Large)
R.S. § 4173.

In subsection (a), the words ‘‘certificate of documentation’’ and ‘‘certificate’’ are substituted for ‘‘register’’ for consistency with chapter 121 of the revised
title. In paragraph (2), the words ‘‘sold or’’ are omitted
as unnecessary. The words ‘‘owned only by citizens of
the United States’’ are substituted for ‘‘no foreign subject or citizen has . . . any share, by way of trust, confidence, or otherwise’’ for consistency in the revised
title and to eliminate unnecessary words.

§ 60104. Depositing certificates of documentation
with consular officers
(a) REQUIREMENT OF MASTER.—When a vessel
owned by citizens of the United States, on a voyage from a port in the United States, arrives at
a foreign port, the master of the vessel shall deposit the vessel’s certificate of documentation
with a consular officer at the foreign port if
there is a consular officer at that port.
(b) RETURN OF CERTIFICATE.—When the master
produces a clearance from the appropriate officer of the foreign port, the consular officer shall
return the certificate of documentation to the
master if the master has complied with the provisions of law related to the discharge of seamen
in a foreign country and the payment of fees of
consular officers.
(c) CIVIL PENALTY AND COLLECTION.—The master of a vessel failing to deposit the certificate
of documentation as required by subsection (a)
is liable to the United States Government for a
civil penalty of $500. The consular officer shall
bring an action to recover the penalty in any
court of competent jurisdiction. The action
shall be brought in the name of the consular officer for the benefit of the United States.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1675.)
HISTORICAL AND REVISION NOTES
Revised
Section
60104 ..........

Source (U.S. Code)
46 App.:354.
46 App.:355.

Source (Statutes at Large)
R.S. § 4309; Apr. 5, 1906, ch.
1366, § 3, 34 Stat. 100.
R.S. § 4310; Apr. 5, 1906, ch.
1366, § 3, 34 Stat. 100.

In this section, the words ‘‘certificate of documentation’’ are substituted for ‘‘register’’ and ‘‘papers’’ for
consistency with chapter 121 of title 46. The words
‘‘sea-letter, and Mediterranean passport’’ in R.S. § 4309
are omitted because the use of those documents was
discontinued by Presidential proclamation on April 10,
1815. The words ‘‘consular officer’’ are substituted for
‘‘consul or vice consul’’ for consistency with 22 U.S.C.
4205. The words ‘‘commercial agent, or vice commercial
agent’’ in R.S. §§ 4309 and 4310 are omitted because of
the abolition of the grade of commercial agent by the
Act of Apr. 5, 1906 (ch. 1366, 34 Stat. 99).
In subsection (b), the words ‘‘or commander’’ are
omitted as unnecessary and for consistency in the section.
In subsection (c), the word ‘‘failing’’ is substituted for
‘‘refuses or neglects’’ to eliminate unnecessary words.
The words ‘‘liable to the United States Government for

(a) VESSELS OF THE UNITED STATES.—Except as
otherwise provided by law, a vessel of the United
States shall obtain clearance from the Secretary
of Homeland Security before proceeding from a
port or place in the United States—
(1) for a foreign port or place;
(2) for another port or place in the United
States if the vessel has on board foreign merchandise for which entry has not been made;
or
(3) outside the territorial sea to visit a hovering vessel or to receive merchandise while
outside the territorial sea.
(b) OTHER VESSELS.—Except as otherwise provided by law, a vessel that is not a vessel of the
United States shall obtain clearance from the
Secretary before proceeding from a port or place
in the United States—
(1) for a foreign port or place;
(2) for another port or place in the United
States; or
(3) outside the territorial sea to visit a hovering vessel or to receive or deliver merchandise while outside the territorial sea.
(c) REGULATIONS.—The Secretary may by regulation—
(1) prescribe the manner in which clearance
under this section is to be obtained, including
the documents, data, or information which
shall be submitted or transmitted, pursuant to
an authorized data interchange system, to obtain the clearance;
(2) permit clearance to be obtained before all
requirements for clearance are complied with,
but only if the owner or operator of the vessel
files a bond in an amount set by the Secretary
conditioned on the compliance by the owner or
operator with all specified requirements for
clearance within a time period (not exceeding
4 business days) established by the Secretary;
and
(3) permit clearance to be obtained at a
place other than a designated port of entry,
under conditions the Secretary may prescribe.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1675.)
HISTORICAL AND REVISION NOTES
Revised
Section
60105 ..........

Source (U.S. Code)
46 App.:91.

Source (Statutes at Large)
R.S. § 4197; Aug. 5, 1935, ch.
438, title II, § 209, 49 Stat.
526; June 16, 1938, ch. 476,
§ 1, 52 Stat. 758; Sept. 1,
1954, ch. 1213, title V,
§ 501(a), 68 Stat. 1140; Pub.
L.
103–182,
title
VI,
§ 686(b), Dec. 8, 1993, 107
Stat. 2221; Pub. L. 106–476,
title I, § 1452(a)(3), Nov. 9,
2000, 114 Stat. 2167.

The Secretary of Homeland Security is substituted
for the Customs Service and for the Secretary of the
Treasury because the functions of the Customs Service
and of the Secretary of the Treasury relating thereto
were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of
2002 (Pub. L. 107–296, 116 Stat. 2178).

Page 409
§ 60106. State inspection laws

When State law requires a certificate of inspection for goods carried on a vessel, a vessel
transporting the goods may not be cleared until
the certificate is produced.

pensation shall be paid for services provided
under this section that is equal to compensation
paid to other carriers in the ordinary transaction of business.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1676.)

(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1676.)
HISTORICAL AND REVISION NOTES
Revised
Section
60106 ..........

Source (U.S. Code)
46 App.:97.

Source (Statutes at Large)

§ 60107. Payment of fees on departing vessel
A departing vessel may be cleared only when
all legal fees that have accrued on the vessel are
paid and proof of payment is presented to the individual granting the clearance.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1676.)
HISTORICAL AND REVISION NOTES

60107 ..........

Source (U.S. Code)
46 App.:100.

§ 60108. Duty to transport tendered cargo
Clearance may be refused to a vessel or vehicle
transporting cargo destined for a domestic or
foreign port when the owner, master, or other
individual in charge refuses to accept cargo tendered in good condition, with proper charges, for
the same or an intermediate port by a citizen of
the United States. This section does not apply if
the vessel or vehicle is already fully loaded (giving appropriate consideration to its proper loading) or is not adaptable to transport the tendered cargo.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1676.)
HISTORICAL AND REVISION NOTES

60108 ..........

Source (U.S. Code)
46 App.:834.

Revised
Section

Source (U.S. Code)

60109 ..........

46 App.:98.

Source (Statutes at Large)
R.S. § 4204; Apr. 5, 1906, ch.
1366, § 3, 34 Stat. 100.

This section is substituted for the source provision to
eliminate unnecessary words.

CHAPTER 603—TONNAGE TAXES AND LIGHT
MONEY
Sec.

60301.
60302.
60303.
60304.
60305.
60306.
60307.

Source (Statutes at Large)
R.S. § 4206.

This section is substituted for the source provision to
eliminate unnecessary words.

Revised
Section

HISTORICAL AND REVISION NOTES

R.S. § 4202.

This section is substituted for the source provision to
eliminate unnecessary words.

Revised
Section

§ 60301

TITLE 46—SHIPPING

Source (Statutes at Large)
Sept. 7, 1916, ch. 451, § 36, 39
Stat. 738.

Only the word ‘‘cargo’’ is used, instead of ‘‘merchandise’’, ‘‘freight’’, and ‘‘cargo’’, for consistency in the
section.

§ 60109. Duty to transport money and securities
of the United States Government
Before being given clearance, a vessel owned
by a citizen of the United States and bound on
a voyage from a port in the United States to another port in the United States or in a foreign
country, or on a voyage from a port in a foreign
country to a port in the United States, shall receive on board any bullion, coin, notes, bonds, or
other securities of the United States Government that an agency, consular officer, or other
agent of the Government offers. The vessel shall
transport the items securely and deliver them
promptly to the proper authorities or consignees
on arriving at the port of destination. Com-

60308.
60309.
60310.
60311.
60312.

Regular tonnage taxes.
Special tonnage taxes.
Light money.
Presidential suspension of tonnage taxes and
light money.
Vessels in distress.
Vessels not engaged in trade.
Vessels engaged in coastwise trade or the
fisheries.
Vessels engaged in Great Lakes trade.
Passenger vessels making trips between ports
of the United States and foreign ports.
Vessels making daily trips on interior waters.
Hospital vessels in time of war.
Rights under treaties preserved.

§ 60301. Regular tonnage taxes
(a) LOWER RATE.—A tax is imposed at the rate
of 4.5 cents per ton, not to exceed a total of 22.5
cents per ton per year, for fiscal years 2006
through 2010, and 2 cents per ton, not to exceed
a total of 10 cents per ton per year, for each fiscal year thereafter, at each entry in a port of
the United States of—
(1) a vessel entering from a foreign port or
place in North America, Central America, the
West Indies Islands, the Bahama Islands, the
Bermuda Islands, or the coast of South America bordering the Caribbean Sea; or
(2) a vessel returning to the same port or
place in the United States from which it departed, and not entering the United States
from another port or place, except—
(A) a vessel of the United States;
(B) a recreational vessel (as defined in section 2101 of this title); or
(C) a barge.
(b) HIGHER RATE.—A tax is imposed at the rate
of 13.5 cents per ton, not to exceed a total of 67.5
cents per ton per year, for fiscal years 2006
through 2010, and 6 cents per ton, not to exceed
a total of 30 cents per ton per year, for each fiscal year thereafter, on a vessel at each entry in
a port of the United States from a foreign port
or place not named in subsection (a)(1).
(c) EXCEPTION FOR VESSELS ENTERING OTHER
THAN BY SEA.—Subsection (a) does not apply to
a vessel entering other than by sea from a foreign port or place at which tonnage, lighthouse,
or other equivalent taxes are not imposed on
vessels of the United States.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1677;
Pub. L. 109–171, title IV, § 4001, Feb. 8, 2006, 120

§ 60302

TITLE 46—SHIPPING

Stat. 27; Pub. L. 110–181, div. C, title XXXV,
§ 3524, Jan. 28, 2008, 122 Stat. 600.)
HISTORICAL AND REVISION NOTES
Revised
Section
60301(a) ......

60301(b) ......
60301(c) ......

Source (U.S. Code)
46 App.:121 (2d sentence words before semicolon).

46 App.:121 (2d sentence words after
semicolon).
46 App.:132.

Source (Statutes at Large)
Aug. 5, 1909, ch. 6, § 36 (1st
sentence), 36 Stat. 111;
Pub. L. 101–508, title X,
§ 10402(a), Nov. 5, 1990, 104
Stat. 1388–398; Pub. L.
103–66, title IX, § 9001(a)(1),
(2), (c)(1), Aug. 10, 1993, 107
Stat. 402; Pub. L. 105–33,
title IX, § 9201(a), Aug. 5,
1997, 111 Stat. 671.

Mar. 8, 1910, ch. 86, 36 Stat.
234; Pub. L. 101–508, title
X, § 10402(b), Nov. 5, 1990,
104 Stat. 1388–399; Pub. L.
103–66, title IX, § 9001(b),
Aug. 10, 1993, 107 Stat. 402;
Pub. L. 105–33, title IX,
§ 9201(b), Aug. 5, 1997, 111
Stat. 671.

In this section, the tax rates for fiscal years 1991
through 2002 are omitted as obsolete.
In subsection (a)(1), the words ‘‘West Indies Islands’’
are substituted for ‘‘West India Islands’’ to conform to
current geographic terminology. The word ‘‘Newfoundland’’ is omitted because Newfoundland is now part of
Canada.
In subsection (a)(2), the reference to the definitions
in section 2101 is confined to ‘‘recreational vessel’’ because the definitions of ‘‘vessel of the United States’’
and ‘‘barge’’ are being moved to chapter 1 of the revised
title and being made applicable title-wide.
AMENDMENTS
2008—Pub. L. 110–181, § 3524(b), repealed Pub. L.
109–171, § 4001. See 2006 Amendment note below.
Subsecs. (a), (b). Pub. L. 110–181, § 3524(a)(1), incorporated the substance of the amendment by Pub. L.
109–171, § 4001, into this section by substituting ‘‘4.5
cents per ton, not to exceed a total of 22.5 cents per ton
per year, for fiscal years 2006 through 2010, and 2 cents
per ton, not to exceed a total of 10 cents per ton per
year, for each fiscal year thereafter,’’ for ‘‘2 cents per
ton (but not more than a total of 10 cents per ton per
year)’’ in subsec. (a) and ‘‘13.5 cents per ton, not to exceed a total of 67.5 cents per ton per year, for fiscal
years 2006 through 2010, and 6 cents per ton, not to exceed a total of 30 cents per ton per year, for each fiscal
year thereafter,’’ for ‘‘6 cents per ton (but not more
than a total of 30 cents per ton per year)’’ in subsec. (b).
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
2006—Pub. L. 109–171, § 4001, which directed the
amendment of sections 121 and 132 of the former Appendix to this title from which this section was derived,
was repealed by Pub. L. 110–181, § 3524(b). See 2008
Amendment note for subsecs. (a), (b) and Historical and
Revision notes above.

§ 60302. Special tonnage taxes
(a) ENTRY FROM FOREIGN PORT OR PLACE.—Regardless of whether a tax is imposed under section 60301 of this title, a tax is imposed on a vessel at each entry in a port of the United States
from a foreign port or place at the following
rates:
(1) 30 cents per ton on a vessel built in the
United States but owned in any part by a subject of a foreign country.
(2) 50 cents per ton on other vessels not of
the United States.

Page 410

(3) 50 cents per ton on a vessel of the United
States having an officer who is not a citizen of
the United States.
(4) $2 per ton on a foreign vessel entering
from a foreign port or place at which vessels of
the United States are not ordinarily allowed
to enter and trade.
(b) VESSELS NOT OF THE UNITED STATES TRANSPORTING PROPERTY BETWEEN DISTRICTS.—Regardless of whether a tax is imposed under section 60301 of this title, a tax of 50 cents per ton
is imposed on a vessel not of the United States
at each entry in one customs district from another district when transporting goods loaded in
one district to be delivered in another district.
(c) EXCEPTION FOR VESSELS BECOMING DOCUMENTED.—The tax of 50 cents per ton under this
section does not apply to a vessel that—
(1) is owned only by citizens of the United
States; and
(2) after entering a port of the United States,
becomes documented as a vessel of the United
States before leaving that port.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1677.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

60302(a) ......

46 App.:121 (1st sentence, 5th sentence words before semicolon,
last sentence
words after semicolon).
46 App.:121 (4th sentence words before proviso).
46 App.:121 (4th sentence proviso).

R.S. § 4219 (1st, 2d sentences,
4th sentence words before
semicolon, last sentence
words before 1st semicolon and after last semicolon); Feb. 27, 1877, ch.
69, § 1, 19 Stat. 250.

60302(b) ......
60302(c) ......

Mar. 4, 1915, ch. 171, § 1, 38
Stat. 1193.

In subsections (a) and (b), the words ‘‘Regardless of
whether a tax is imposed under section 60301 of this
title’’ are added for clarity. See 19 C.F.R. § 4.20(c) (2003).
In subsection (a)(1), the word ‘‘owned’’ is substituted
for ‘‘belonging’’ for consistency in the revised title.
In subsection (a)(3), the words ‘‘vessel of the United
States’’ are substituted for ‘‘vessel’’ for clarity.
In subsection (c), the words ‘‘The tax of 50 cents per
ton’’ are substituted for ‘‘no such duty’’ in 46 App.
U.S.C. 121 to conform more closely to the language in
section 1 of the Act of March 4, 1915 (ch. 171, 38 Stat.
1193). The word ‘‘documented’’ is substituted for ‘‘registered’’ for consistency in the revised title.
The words ‘‘In addition to the tonnage-duty above
imposed, there shall be paid a tax, at the rate of thirty
cents per ton, on vessels which shall be entered at any
custom-house within the United States from any foreign port or place’’ in R.S. § 4219 were omitted from the
original codification of R.S. § 4219 in 46 U.S.C. 121 (1926
edition, 44 Stat. 1467). A codification note which first
appeared in the 1958 edition of the United States Code
for 46 U.S.C. 121 says that the words apparently were
omitted as superseded and repealed by section 14 of the
Act of June 26, 1884 (ch. 121, 23 Stat. 57), as amended by
section 11 of the Act of June 19, 1886 (ch. 421, 24 Stat.
81), and section 1 of the Act of April 4, 1888 (ch. 61, 25
Stat. 80).

§ 60303. Light money
(a) IMPOSITION OF TAX.—A tax of 50 cents per
ton, to be called ‘‘light money’’, is imposed on a
vessel not of the United States at each entry in
a port of the United States. This tax shall be imposed and collected under the same regulations
that apply to tonnage taxes.

Page 411

§ 60307

TITLE 46—SHIPPING

(b) EXCEPTION FOR VESSELS OWNED BY CITIZENS.—

(1) IN GENERAL.—Subsection (a) does not
apply to a vessel owned only by citizens of the
United States if—
(A) the vessel is carrying a regular document issued by a customhouse of the United
States proving the vessel to be owned only
by citizens of the United States; and
(B) on entry of the vessel from a foreign
port, the individual designated under paragraph (2) states under oath that—
(i) the document contains the names of
all the owners of the vessel; or
(ii) part of the ownership has been transferred since the document was issued and,
to the best of that individual’s knowledge
and belief, the vessel is still owned only by
citizens of the United States.
(2) PERSON TO MAKE STATEMENT.—The statement under paragraph (1)(B) shall be made
by—
(A) an owner if one resides at the port of
entry; or
(B) the master if an owner does not reside
at the port of entry.

§ 60304. Presidential suspension of tonnage taxes
and light money
If the President is satisfied that the government of a foreign country does not impose discriminating or countervailing duties to the disadvantage of the United States, the President
shall suspend the imposition of special tonnage
taxes and light money under sections 60302 and
60303 of this title on vessels of that country.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1678.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

60304 ..........

46 App.:121 (5th sentence words after
semicolon).

R.S. § 4219 (4th sentence
words after semicolon);
Feb. 27, 1877, ch. 69, § 1, 19
Stat. 250.

The words ‘‘If the President is satisfied . . . the
President shall suspend the imposition’’ are substituted
for ‘‘none of the duties . . . shall be levied . . . if the
President of the United States shall be satisfied’’, the
words ‘‘does not impose’’ are substituted for ‘‘have been
abolished’’, and the words ‘‘special tonnage taxes and
light money’’ are substituted for ‘‘duties on tonnage
above mentioned’’, for clarity.

§ 60305. Vessels in distress

(c) EXCEPTION FOR VESSELS BECOMING DOCUMENTED.—Subsection (a) section does not apply
to a vessel that—
(1) is owned only by citizens of the United
States; and
(2) after entering a port of the United States,
becomes documented as a vessel of the United
States before leaving that port.

A vessel is exempt from tonnage taxes and
light money when it enters because it is in distress.

(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1678.)

60305 ..........

(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1678.)
HISTORICAL AND REVISION NOTES
Revised
Section

HISTORICAL AND REVISION NOTES
Revised
Section
60303(a) ......
60303(b) ......
60303(c) ......

Source (U.S. Code)
46 App.:128 (words
before proviso).
46 App.:129.
46 App.:128 (proviso).

Source (U.S. Code)
46 App.:121 (3d sentence related to
distress).

Source (Statutes at Large)

Source (Statutes at Large)
Aug. 5, 1909, ch. 6, § 36 (2d
sentence related to distress), 36 Stat. 111; Pub. L.
101–508, title X, § 10402(a),
Nov. 5, 1990, 104 Stat.
1388–398; Pub. L. 103–66,
title IX, § 9001(a)(3), (c)(1),
Aug. 10, 1993, 107 Stat. 402.

R.S. § 4225.
R.S. § 4226.
Mar. 4, 1915, ch. 171, § 1, 38
Stat. 1193.

In subsection (a), the word ‘‘tax’’ is substituted for
‘‘duty’’, and the word ‘‘imposed’’ is substituted for
‘‘levied and collected’’, for consistency in the chapter.
The words ‘‘in the same manner’’ are omitted as unnecessary.
In subsection (b)(1), before subparagraph (A), the
words ‘‘does not apply to’’ are substituted for ‘‘shall
not be deemed to operate upon’’ to eliminate unnecessary words. The word ‘‘unregistered’’ is omitted as unnecessary. The word ‘‘only’’ is added for clarity and for
consistency in the revised title. In subparagraph (A),
the words ‘‘owned only by citizens of the United
States’’ are substituted for ‘‘American property’’ for
consistency. In subparagraph (B)(ii), the words ‘‘sold
or’’ are omitted as unnecessary. The words ‘‘owned only
by citizens of the United States’’ are substituted for
‘‘no foreign subject or citizen has . . . any share, by
way of trust, confidence, or otherwise’’ to eliminate unnecessary words.
In subsection (b)(2), subparagraph (A) is substituted
for ‘‘if the same shall be at the port at which the owner
or any of the part owners reside’’, and subparagraph (B)
is substituted for ‘‘If the owner or any part owner does
not reside at the port or place at which such vessel
shall enter, then the master shall make oath to the
like effect’’, to eliminate unnecessary words.

The words ‘‘and light money’’ are added for clarity
and consistency. See 19 C.F.R. § 4.21 (2003).

§ 60306. Vessels not engaged in trade
A vessel is exempt from tonnage taxes and
light money when not engaged in trade.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1678.)
HISTORICAL AND REVISION NOTES
Revised
Section
60306 ..........

Source (U.S. Code)
46 App.:121 (3d sentence related to
trade).

Source (Statutes at Large)
Aug. 5, 1909, ch. 6, § 36 (2d
sentence related to trade),
36 Stat. 111; Pub. L.
101–508, title X, § 10402(a),
Nov. 5, 1990, 104 Stat.
1388–398; Pub. L. 103–66,
title IX, § 9001(a)(3), (c)(1),
Aug. 10, 1993, 107 Stat. 402.

The words ‘‘and light money’’ are added for clarity
and consistency. See 19 C.F.R. § 4.21 (2003).

§ 60307. Vessels engaged in coastwise trade or
the fisheries
A vessel with a registry endorsement or a
coastwise endorsement, trading from one port in
the United States to another port in the United
States or employed in the bank, whale, or other

§ 60308

TITLE 46—SHIPPING

fisheries, is exempt from tonnage taxes and
light money.

Page 412

(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1679.)
HISTORICAL AND REVISION NOTES

(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1678.)
HISTORICAL AND REVISION NOTES
Revised
Section
60307 ..........

Revised
Section

Source (U.S. Code)

60310 ..........
Source (U.S. Code)
46 App.:122.

46 App.:125.

Source (Statutes at Large)
R.S. § 4221.

Source (Statutes at Large)
R.S. § 4220.

The words ‘‘with a registry endorsement or a coastwise endorsement’’ are substituted for ‘‘if such vessel
be licensed, registered, or enrolled’’ for consistency
with chapter 121 of the revised title. The words ‘‘belonging to any citizen of the United States’’ are omitted as unnecessary because, under chapter 121 as
amended by this bill, ownership by a citizen of the
United States is a requirement for documentation. The
words ‘‘and light money’’ are added for clarity and consistency. See 19 C.F.R. § 4.21 (2003).

§ 60308. Vessels engaged in Great Lakes trade
A documented vessel with a registry endorsement, engaged in foreign trade on the Great
Lakes or their tributary or connecting waters in
trade with Canada, does not become subject to
tonnage taxes or light money because of that
trade.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1679.)

The words ‘‘is exempt from tonnage taxes’’ are substituted for ‘‘no tonnage fees shall be charged’’ for consistency in the revised chapter. The words ‘‘and light
money’’ are added for clarity and consistency. See 19
C.F.R. § 4.21 (2003). The words ‘‘by the officers of the
United States’’ are omitted as unnecessary.

§ 60311. Hospital vessels in time of war
In time of war, a hospital vessel is exempt
from tonnage taxes, light money, and pilotage
charges in the ports of the United States if the
vessel is one for which the conditions of the
international convention for the exemption of
hospital ships from taxation in time of war, concluded at The Hague on December 21, 1904, are
satisfied. The President by proclamation shall
name the vessels for which the conditions are
satisfied and state when the exemption begins
and ends.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1679.)
HISTORICAL AND REVISION NOTES

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

Revised
Section

Source (U.S. Code)

60311 ..........
60308 ..........

46 App.:123.

R.S. § 2793; Sept. 25, 1941, ch.
423, 55 Stat. 733; Pub. L.
103–182, title VI, § 686(a)(1),
Dec. 8, 1993, 107 Stat. 2220;
Pub. L. 104–324, title XI,
§ 1115(b)(4), Oct. 19, 1996,
110 Stat. 3972.

The words ‘‘or light money’’ are added for clarity and
consistency. See 19 C.F.R. § 4.21 (2003).
The statutory source for this section, R.S. § 2793, is
amended by section 13(a) of this bill. See the explanation in this report for that amendment.

§ 60309. Passenger vessels making trips between
ports of the United States and foreign ports
A passenger vessel making at least 3 trips per
week between a port of the United States and a
foreign port is exempt from tonnage taxes and
light money.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1679.)

60309 ..........

Source (U.S. Code)
46 App.:124.

The words ‘‘and possessions thereof’’ are omitted as
unnecessary because of the definition of ‘‘United
States’’ in chapter 1 of the revised title.

§ 60312. Rights under treaties preserved
This chapter and chapter 605 of this title do
not affect a right or privilege of a foreign country relating to tonnage taxes or other duties on
vessels under a law or treaty of the United
States.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1679.)
HISTORICAL AND REVISION NOTES
Revised
Section
60312 ..........

Source (Statutes at Large)
R.S. § 2792; May 28, 1908, ch.
212, § 1, 35 Stat. 424.

The words ‘‘at least 3 trips per week’’ are substituted
for ‘‘triweekly or oftener’’ for clarity. The words ‘‘and
light money’’ are added for clarity and consistency. See
19 C.F.R. § 4.21 (2003). The words ‘‘while such service triweekly or oftener is maintained’’ are omitted as unnecessary.

§ 60310. Vessels making daily trips on interior
waters
A vessel making regular daily trips between a
port of the United States and a port of Canada
only on interior waters not navigable to the
ocean is exempt from tonnage taxes and light
money, except on its first clearing each year.

Source (Statutes at Large)
Mar. 24, 1908, ch. 96, 35 Stat.
46.

46 App.:134.

HISTORICAL AND REVISION NOTES
Revised
Section

46 App.:133.

Source (U.S. Code)

Source (Statutes at Large)

46 App.:121 (last
sentence words
before semicolon).

R.S. § 4219 (last sentence
words between 1st and
last semicolons); Feb. 27,
1877, ch. 69, § 1, 19 Stat.
250.
R.S. § 4227.

46 App.:135.

The words ‘‘This chapter and chapter 605 of this title’’
are substituted for ‘‘title 48 of the Revised Statutes’’ in
46 App. U.S.C. 135 because the provisions of title 48 of
the Revised Statutes which are still alive and relate to
tonnage or other duties on vessels are restated in these
two chapters. Although these two chapters restate
other provisions which are not from title 48 of the Revised Statutes, expansion of the reference to include
those provisions is done for consistency.

CHAPTER 605—DISCRIMINATING DUTIES
AND RECIPROCAL PRIVILEGES
Sec.

60501.
60502.

Vessels allowed to import.
Discriminating duty on goods imported in
foreign vessels or from contiguous countries.

Page 413
Sec.

60503.
60504.
60505.
60506.
60507.

§ 60502

TITLE 46—SHIPPING

Reciprocal suspension of discriminating duties.
Reciprocal privileges for recreational vessels.
Retaliatory suspension of commercial privileges.
Retaliation against British dominions of
North America.
Suspension of free passage through Saint
Marys Falls Canal.

§ 60501. Vessels allowed to import
(a) IN GENERAL.—Except as otherwise provided
by treaty, goods may be imported into the
United States from a foreign port or place only
in—
(1) a vessel of the United States; or
(2) a foreign vessel owned only by citizens or
subjects of the country—
(A) in which the goods are grown, produced, or manufactured; or
(B) from which the goods can only be, or
most usually are, first shipped for transportation.
(b) EXCEPTION FOR VESSELS OF COUNTRIES NOT
MAINTAINING SIMILAR RESTRICTIONS.—Subsection
(a) does not apply to a vessel of a foreign country that does not maintain a similar restriction
against United States documented vessels.
(c) EXCEPTION FOR VESSELS BECOMING DOCUMENTED.—Subsection (a) does not apply to a vessel that—
(1) is owned only by citizens of the United
States; and
(2) after entering a port of the United States,
becomes documented as a vessel of the United
States before leaving that port.
(d) SEIZURE AND FORFEITURE.—If goods are imported in violation of this section, the goods and
the vessel in which they are imported, along
with its equipment and other cargo, may be
seized by and forfeited to the United States Government.

parel, and furniture, shall be forfeited to the United
States; and such goods, wares, or merchandise, ship, or
vessel, and cargo shall be liable to be seized, prosecuted, and condemned in like manner, and under the
same regulations, restrictions, and provisions as have
been heretofore established for the recovery, collection,
distribution, and remission of forfeitures to the United
States by the several revenue laws’’ to eliminate unnecessary words.

§ 60502. Discriminating duty on goods imported
in foreign vessels or from contiguous countries
(a) IMPOSITION OF DUTY.—A discriminating
duty of 10 percent ad valorem (in addition to
other duties imposed by law) is imposed on
goods—
(1) imported in a vessel not of the United
States unless the vessel—
(A) is entitled by law or treaty to enter
the ports of the United States on payment of
the same duties as are payable on goods imported in a vessel of the United States; or
(B)(i) is owned only by citizens of the
United States; and
(ii) after entering a port of the United
States, becomes documented as a vessel of
the United States before leaving that port;
or
(2) produced or manufactured in a foreign
country not contiguous to the United States
and imported from a country contiguous to
the United States, unless imported in the
usual course of strictly retail trade.
(b) SEIZURE AND FORFEITURE.—If goods are imported without payment of the duty required by
this section, the goods and the vessel in which
they are imported may be seized by, and forfeited to, the United States Government.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1680.)
HISTORICAL AND REVISION NOTES

(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1679.)

Revised
Section

HISTORICAL AND REVISION NOTES

60502(a) ......

19:128.

60502(b) ......

46 App.:146.
19:130 (last sentence
related to 19:128).

Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

60501(a) ......

19:130 (1st sentence).

Oct. 3, 1913, ch. 16, § IV(J)(2),
(3), 38 Stat. 196; Mar. 15,
1915, ch. 171, § 1, 38 Stat.
1193; Pub. L. 103–182, title
VI, § 689(a)(2), Dec. 8, 1993,
107 Stat. 2222.

60501(b) ......
60501(c) ......
60501(d) ......

19:131 (words before
‘‘nor’’).
19:131 (words beginning with ‘‘nor’’).
19:130 (last sentence
related to 19:130).

In this section, the word ‘‘goods’’ is substituted for
‘‘goods, wares, or merchandise’’ to eliminate unnecessary words.
In subsection (a)(2), before subparagraph (A), the
words ‘‘owned only by’’ are substituted for ‘‘truly and
wholly belong to’’ for consistency in the revised title.
In subsection (b), the words ‘‘or goods, wares, or merchandise imported in vessels’’ are omitted as unnecessary because of the wording of subsection (a) of the revised section. The word ‘‘restriction’’ is substituted for
‘‘regulation’’ as being more appropriate.
Subsection (d) is substituted for ‘‘All goods, wares, or
merchandise imported contrary to this section or section 128 of this title, and the vessel wherein the same
shall be imported, together with her cargo, tackle, ap-

Source (U.S. Code)

Source (Statutes at Large)
Oct. 3, 1913, ch. 16, § IV(J)(1),
38 Stat. 196; Mar. 15, 1915,
ch. 171, § 1, 38 Stat. 1193;
Pub. L. 103–182, title VI,
§ 689(a)(1), Dec. 8, 1993, 107
Stat. 2222.
Oct. 3, 1913, ch. 16, § IV(J)(2),
38 Stat. 196.

In this section, the word ‘‘goods’’ is substituted for
‘‘goods, wares, or merchandise’’ to eliminate unnecessary words.
In subsection (a)(1), subparagraphs (A) and (B) are
substituted for ‘‘but this discriminating duty shall not
apply to goods, wares, or merchandise which shall be
imported in vessels not of the United States entitled at
the time of such importation by treaty or convention
or Act of Congress to be entered in the ports of the
United States on payment of the same duties as shall
then be payable on goods, wares, and merchandise imported in vessels of the United States, nor to goods,
wares, and merchandise imported in a vessel owned by
citizens of the United States but not a vessel of the
United States if such vessel after entering an American
port shall, before leaving the same, be documented
under chapter 121 of title 46’’ to eliminate unnecessary
words.
Subsection (a)(2) is substituted for ‘‘or which being
the production or manufacture of any foreign country
not contiguous to the United States, shall come into

§ 60503

TITLE 46—SHIPPING

the United States from such contiguous country’’ and
‘‘but this discriminating duty shall not apply . . . nor
to such products or manufactures as shall be imported
from such contiguous countries in the usual course of
strictly retail trade’’ to eliminate unnecessary words.
Subsection (b) is substituted for the source provision
for consistency with section 60501(d) and to eliminate
unnecessary words. See note for section 60501(d) in this
report.

§ 60503. Reciprocal suspension of discriminating
duties
(a) GENERAL AUTHORITY.—On receiving satisfactory proof from the government of a foreign
country that it has suspended, in any part, the
imposition of discriminating duties for any class
of vessels owned by citizens of the United States
or goods imported in those vessels, the President may proclaim a reciprocal suspension of
discriminating duties for the same class of vessels owned by citizens of that country or goods
imported in those vessels.
(b) EFFECTIVE AND EXPIRATION DATES.—A suspension under this section takes effect retroactively from the date the President received
the proof from the foreign government, and expires when that government stops granting the
reciprocal suspension.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1680.)
HISTORICAL AND REVISION NOTES
Revised
Section
60503 ..........

Source (U.S. Code)
46 App.:141.

Source (Statutes at Large)
R.S. § 4228; July 24, 1897, ch.
13, 30 Stat. 214.

In this section, the word ‘‘goods’’ is substituted for
‘‘produce, manufactures, or merchandise’’, ‘‘merchandise’’, and ‘‘cargoes’’ for consistency in the chapter.
Other changes are made to eliminate unnecessary
words.

§ 60504. Reciprocal privileges for recreational
vessels
When the President is satisfied that yachts
owned by residents of the United States and
used only for pleasure are allowed to arrive at,
depart from, and cruise in the waters of a foreign port without entering, clearing, or paying
any duties or fees (including cruising license
fees), the Secretary of Homeland Security may
allow yachts from that foreign port used only
for pleasure to arrive at and depart from the
ports of the United States and to cruise in the
waters of the United States without paying any
duties or fees. However, the Secretary may require foreign yachts to obtain a license to cruise
in the waters of the United States. The license
shall be in the form prescribed by the Secretary
and contain limitations about length of time, direction, place of cruising and action, and other
matters the Secretary considers appropriate.
The license shall be issued without cost to the
yacht.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1680.)

Page 414
HISTORICAL AND REVISION NOTES

Revised
Section
60503 ..........

Source (U.S. Code)
46 App.:104.

Source (Statutes at Large)
May 28, 1908, ch. 212, § 5, 35
Stat. 425; Aug. 5, 1909, ch.
6, § 37 (3d par.), 36 Stat.
112; June 26, 1948, ch. 673,
62 Stat. 1051.

The Secretary of Homeland Security is substituted
for the Commissioner of Customs because the functions
of the Customs Service and of the Secretary of the
Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the
Homeland Security Act of 2002 (Pub. L. 107–296, 116
Stat. 2178). The functions of the Commissioner of Customs previously were vested in the Secretary of the
Treasury under section 321(c) of title 31. For prior related transfers of functions, see the transfer of functions note under 46 App. U.S.C. 104.

§ 60505. Retaliatory suspension of commercial
privileges
(a) GENERAL AUTHORITY.—The President may
proclaim a suspension of commercial privileges
to vessels of a foreign country when—
(1) vessels of that country have been given
the same commercial privileges in the ports
and waters of the United States given to vessels of the United States (except the privilege
of engaging in coastwise commerce); and
(2) vessels of the United States are denied
commercial privileges in the ports or waters of
that country given to vessels of that country.
(b) APPLICATION.—A suspension under this section shall apply to the same commercial privileges denied to vessels of the United States in
the ports or waters of the foreign country, and
to the same class of vessels of that country as
the class of vessels of the United States denied
the privileges.
(c) EFFECTIVE DATE.—The President shall designate the effective date of the suspension in the
proclamation.
(d) PENALTIES.—
(1) SEIZURE AND FORFEITURE.—If the master,
officer, or agent of a vessel of a foreign country does an act for the vessel in the ports or
waters of the United States in violation of a
proclamation issued under this section, the
vessel and the goods on the vessel may be
seized by, and forfeited to, the United States
Government.
(2) FINE OR IMPRISONMENT.—A person opposing an official of the Government enforcing
this section shall be fined under title 18, imprisoned for not more than 2 years, or both.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1681.)
HISTORICAL AND REVISION NOTES
Revised
Section
60505 ..........

Source (U.S. Code)
46 App.:142.

Source (Statutes at Large)
June 19, 1886, ch. 421, § 17, 24
Stat. 82.

In this section, the words ‘‘vessels of the United
States’’ are used instead of both ‘‘vessels of the United
States’’ and ‘‘American vessels’’ for consistency in the
section. The words ‘‘vessels of a foreign country’’ and
‘‘vessels of that country’’ are substituted for ‘‘foreign
country whose vessels’’, ‘‘national vessels’’, ‘‘vessels of
such foreign country’’, and similar references, for consistency. The words ‘‘ports and waters’’ and ‘‘ports or

Page 415

§ 60506

TITLE 46—SHIPPING

waters’’ are substituted for ‘‘ports’’, ‘‘harbors, ports, or
waters’’, and ‘‘ports, harbors, or waters’’ for consistency.
In subsection (a), before paragraph (1), the words ‘‘on
receiving satisfactory information of the continuance
of such discriminations against any vessels of the
United States’’ are omitted as unnecessary. In paragraph (1), the words ‘‘given the same commercial privileges’’ are substitued for ‘‘placed on the same footing’’
for clarity and for consistency in the section.
Subsection (b) is substituted for ‘‘excluding . . . from
the exercise of such commercial privileges in the ports
of the United States as are denied to American vessels
in the ports of such foreign country, all vessels of such
foreign country of a similar character to the vessels of
the United States thus discriminated against’’ for clarity and to eliminate unnecessary words.
Subsection (c) is substituted for ‘‘on and after such
time as he may indicate’’ for clarity.
Subsection (d)(1) is substituted for ‘‘and on and after
the date named in such proclamation for it to take effect, if the master, officer, or agent of any vessel of
such foreign country excluded by said proclamation
from the exercise of any commercial privileges shall do
any act prohibited by said proclamation in the ports,
harbors, or waters of the United States for or on account of such vessel, such vessel, and its rigging, tackle, furniture, and boats, and all the goods on board,
shall be liable to seizure and to forfeiture to the United
States’’ for consistency in the revised title and to
eliminate unnecessary words.
Subsection (d)(2) is substituted for ‘‘any person opposing any officer of the United States in the enforcement of this section, or aiding and abetting any other
person in such opposition, shall forfeit $800, and shall
be guilty of a misdemeanor, and, upon conviction, shall
be liable to imprisonment for a term not exceeding two
years’’ because of chapter 227 of title 18.

§ 60506. Retaliation against British dominions of
North America
(a) GENERAL AUTHORITY.—The President by
proclamation may prohibit vessels of the British
dominions of North America, their masters and
crews, and products of or coming from those dominions, from entering waters, ports, or places
of the United States when the President is satisfied that—
(1) fishermen or fishing vessels of the United
States in waters, ports, or places of the British
dominions of North America are being or recently have been—
(A) denied rights provided by law or treaty;
(B) subjected to unreasonable restrictions
in the exercise of those rights; or
(C) otherwise harassed;
(2) fishermen or fishing vessels of the United
States, having a permit under the laws of the
United States to dock or trade at a port or
place in the British dominions of North America, are being or recently have been—
(A) denied the privilege of entering the
port or place in the same manner and under
the same regulations applicable to trading
vessels of the most-favored-nation;
(B) prevented from buying supplies allowed
to be sold to trading vessels of the most-favored-nation; or
(C) otherwise harassed; or
(3) other vessels of the United States or their
masters or crews in waters, ports, or places of
the British dominions of North America are
being or recently have been—

(A) denied privileges given to vessels of the
most-favored-nation or their masters or
crews; or
(B) otherwise harassed.
(b) COVERAGE AND EXCEPTIONS.—The President
may apply a proclamation under this section to
any of the subjects named, and may include exceptions for vessels in distress or need of supplies. The President may change, revoke, and
renew the proclamation.
(c) PENALTIES.—A person violating a proclamation issued under this section shall be fined
under title 18, imprisoned for not more than 2
years, or both. A vessel or goods found in waters, ports, or places of the United States in violation of the proclamation may be seized by, and
forfeited to, the United States Government.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1681.)
HISTORICAL AND REVISION NOTES
Revised
Section
60506 ..........

Source (U.S. Code)
46 App.:143.

Source (Statutes at Large)
Mar. 3, 1887, ch. 339, 24 Stat.
475.

In this section, the words ‘‘fishermen or fishing vessels of the United States’’ are substituted for ‘‘American fishing vessels or American fishermen’’ for consistency in the revised title. The words ‘‘are or recently
have been denied’’ are substituted for ‘‘are or then lately have been denied or abridged’’ to eliminate unnecessary words.
In subsection (a), the words before paragraph (1) are
substituted for ‘‘Whenever the President of the United
States shall be satisfied . . . then, and in either or all
of such cases, it shall be lawful, and it shall be the duty
of the President of the United States, in his discretion,
by proclamation to that effect, to deny vessels, their
masters and crews, of the British dominions of North
America, any entrance into the waters, ports, or places
of or within the United States . . . whether such vessel
shall have come directly from said dominions on such
destined voyage or by way of some port or place in such
destined voyage elsewhere; and also to deny entry into
any port or place of the United States of fresh fish or
salt fish or any other product of said dominions, or
other goods coming from said dominions to the United
States’’ to eliminate unnecessary words.
In subsection (a)(1)(B), the words ‘‘regulations, or requirements’’ are omitted as unnecessary.
In subsection (a)(1)(C), the words ‘‘otherwise harassed’’ are substituted for ‘‘unjustly vexed or harassed
in the enjoyment of such rights, . . . or otherwise unjustly vexed or harassed’’ to eliminate unnecessary
words.
In subsection (a)(2), before subparagraph (A), the
word ‘‘dock’’ is substituted for ‘‘touch’’ for clarity. In
subparagraph (C), the words ‘‘otherwise harassed’’ are
substituted for ‘‘unjustly vexed or harassed, in respect
thereof, or otherwise be unjustly vexed or harassed
therein’’ to eliminate unnecessary words.
In subsection (a)(3)(B), the words ‘‘otherwise harassed’’ are substituted for ‘‘unjustly vexed or harassed
in respect of the same, or unjustly vexed or harassed
therein’’ to eliminate unnecessary words.
Subsection (b) is substituted for ‘‘(with such exceptions in regard to vessels in distress, stress of weather,
or needing supplies as to the President shall seem proper)’’ and ‘‘The President may, in his discretion, apply
such proclamation to any part or to all of the foregoing
named subjects, and may revoke, qualify, limit, and
renew such proclamation from time to time as he may
deem necessary to the full and just execution of the
purposes of this section’’ to eliminate unnecessary
words.
Subsection (c) is substituted for ‘‘Every violation of
any such proclamation, or any part thereof, is declared

§ 60507

TITLE 46—SHIPPING

illegal, and all vessels and goods so coming or being
within the waters, ports, or places of the United States
contrary to such proclamation shall be forfeited to the
United States; and such forfeiture shall be enforced and
proceeded upon in the same manner and with the same
effect as in the case of vessels or goods whose importation or coming to or being in the waters or ports of the
United States contrary to law may be enforced and proceeded upon. Every person who shall violate any of the
provisions of this section, or such proclamation of the
President made in pursuance hereof, shall be deemed
guilty of a misdemeanor, and, on conviction thereof,
shall be punished by a fine not exceeding $1,000, or by
imprisonment for a term not exceeding two years, or by
both said punishments, in the discretion of the court.’’
for consistency in the revised title and with chapter 227
of title 18 and to eliminate unnecessary words.

§ 60507. Suspension of free passage through Saint
Marys Falls Canal
(a) PURPOSE.—The purpose of this section is to
secure reciprocal advantages for the citizens,
ports, and vessels of the United States.
(b) GENERAL AUTHORITY.—When the President
is satisfied that vessels of the United States, or
passengers or cargo being transported to a port
of the United States, are prohibited from passing through a canal or lock connected with the
navigation of the Saint Lawrence River, the
Great Lakes, or their connecting waterways, or
burdened in that passage by tolls or other means
that are unreasonable in view of the free passage
through the Saint Marys Falls Canal allowed to
vessels of all countries, the President by proclamation may suspend the right of free passage
through the Saint Marys Falls Canal for vessels
owned by subjects of the country imposing the
prohibition, tolls, or other burdens and for passengers and cargo being transported to the ports
of that country, even when carried in vessels of
the United States. The suspension shall apply to
the extent and for the time the President considers appropriate.
(c) IMPOSITION OF TOLL.—
(1) IN GENERAL.—During a suspension under
this section, the President shall impose a toll
of not more than $2 per ton on cargo and not
more than $5 on each passenger.
(2) EXCEPTIONS.—Notwithstanding paragraph
(1), a toll may not be imposed on passengers or
cargo landed at Ogdensburg, New York, or any
port west of Ogdensburg and south of a line
drawn from the northern boundary of New
York through the Saint Lawrence River, the
Great Lakes, and their connecting channels to
the northern boundary of Minnesota.
(d) COLLECTION OF TOLL.—
(1) IN GENERAL.—A toll imposed under this
section shall be collected under regulations
prescribed by the Secretary of Homeland Security. The Secretary may require the master of
a vessel to provide a sworn statement of the
amount and kind of cargo, the number of passengers, and the destination of the passengers
and cargo.
(2) PROOF OF LANDING.—When applicable, the
Secretary also may require satisfactory proof
that the passengers and cargo were landed at
a port described in subsection (c)(2). Until that
proof is provided, the Secretary may assume
the passengers and cargo were not landed at
such a port, and the amount of a toll that

Page 416

otherwise would be imposed is a lien enforceable against the vessel when found in the waters of the United States.
(Pub. L. 109–304, § 9(b), Oct. 6, 2006, 120 Stat. 1682.)
HISTORICAL AND REVISION NOTES
Revised
Section
60507(a) ......
60507(b) ......
60507(c) ......
60507(d) ......

Source (U.S. Code)

Source (Statutes at Large)

46 App.:144 (1st par.
words before 3d
comma).
46 App.:144 (1st par.
words after 3d
comma).
46 App.:144 (last
par.).
46 App.:145.

July 26, 1892, ch. 248, 27
Stat. 267.

In this section, the word ‘‘cargo’’ is substituted for
‘‘cargo’’, ‘‘cargoes’’, ‘‘portions or cargoes’’, ‘‘freight’’,
and ‘‘freight of whatever kind or description’’ for consistency and to eliminate unnecessary words.
Subsection (a) is substituted for ‘‘With a view of securing reciprocal advantages for the citizens, ports, and
vessels of the United States’’ to improve the organization of the section.
In subsection (b), the words ‘‘and so often as’’ are
omitted as unnecessary. The word ‘‘burdened’’ is substituted for ‘‘made difficult or burdensome’’, the word
‘‘unreasonable’’ is substituted for ‘‘reciprocally unjust
and unreasonable’’, the words ‘‘the President by proclamation may suspend’’ are substituted for ‘‘he shall
have the power, and it shall be his duty, to suspend by
proclamation to that effect’’, the words ‘‘even when
carried in vessels of the United States’’ are substituted
for ‘‘whether carried in vessels of the United States or
of other nations’’, and the words ‘‘The suspension shall
apply to the extent and for the time the President considers appropriate’’ are substituted for ‘‘for such time
and to such extent (including absolute prohibition) as
he shall deem just’’, to eliminate unnecessary words.
In subsection (c)(1), the words ‘‘the President shall
impose a toll of’’ are substituted for ‘‘tolls shall be levied, collected, and paid as follows, to wit: . . . as shall
be from time to time determined by the President’’ for
clarity and to eliminate unnecessary words.
In subsection (c)(2), the word ‘‘landed’’ is substituted
for ‘‘carried to and landed’’ to eliminate unnecessary
words.
In subsection (d), the Secretary of Homeland Security
is substituted for the Commissioner of Customs because
the functions of the Customs Service and of the Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub.
L. 107–296, 116 Stat. 2178). The functions of the Commissioner of Customs previously were vested in the Secretary of the Treasury under section 321(c) of title 31.
For prior related transfers of functions, see the transfer
of functions note under 46 App. U.S.C. 145.
In subsection (d)(2), the words ‘‘a port described in
subsection (c)(2) of this section’’ are substituted for
‘‘some port or place within the limits above named’’ for
clarity.

Subtitle VII—Security and Drug
Enforcement
Chapter

701.
703.
705.

Sec.

Port Security ........................................ 70101
Maritime Security ............................... 70301
Maritime Drug Law Enforcement ... 70501
AMENDMENTS

2008—Pub. L. 110–181, div. C, title XXXV, § 3529(c)(1),
Jan. 28, 2008, 122 Stat. 603, repealed Pub. L. 109–304,
§ 9(a). See 2006 Amendment note below.
2006—Pub. L. 109–304, § 10(1), Oct. 6, 2006, 120 Stat. 1683,
amended analysis generally, substituting ‘‘Security

Page 417

and Drug Enforcement’’ for ‘‘Miscellaneous’’ in subtitle
heading and adding items 703 and 705.
Pub. L. 109–304, § 9(a), Oct. 6, 2006, 120 Stat. 1674, which
directed amendment identical to that made by Pub. L.
109–241, was repealed by Pub. L. 110–181, § 3529(c)(1), with
Pub. L. 109–304, § 9(a), to be treated as if never enacted.
See note below.
Pub. L. 109–241, title IX, § 901(k)(1), July 11, 2006, 120
Stat. 564, redesignated subtitle VI of this title as subtitle VII.

CHAPTER 701—PORT SECURITY
SUBCHAPTER I—GENERAL
Sec.

70101.
70102.

Definitions.
United States facility and vessel vulnerability assessments.
70103.
Maritime transportation security plans.
70104.
Transportation security incident response.
70105.
Transportation security cards.
70106.
Deployable, specialized forces.
70107.
Grants.
70107A. Interagency operational centers for port security 1
70108.
Foreign port assessment.
70109.
Notifying foreign authorities.
70110.
Actions and assistance for foreign ports or facilities and United States territories.
70111.
Enhanced crewmember identification.
70112.
Maritime security advisory committees.2
70113.
Maritime intelligence.
70114.
Automatic identification systems.
70115.
Long-range vessel tracking system.
70116.
Secure systems of transportation.
[70117.
Repealed.]
70118.
Enforcement by State and local officers.
70119.
Civil penalty.
70120.
In rem liability for civil penalties and certain
costs.
70121.
Withholding of clearance.
70122.
Waterway watch program.
70123.
Mobile biometric identification.
70124.
Regulations.
70125.
Port security training for facility security officers.
SUBCHAPTER II—PORT SECURITY ZONES
70131.
70132.

Definitions.
Credentialing standards, training, and certification for State and local support for the
enforcement of security zones for the transportation of especially hazardous cargo.
AMENDMENTS

2010—Pub. L. 111–281, title VIII, § 828(c)(2), Oct. 15,
2010, 124 Stat. 3007, as amended by Pub. L. 111–330,
§ 1(17)(B)–(D), Dec. 22, 2010, 124 Stat. 3570, added items
for subchapters I and II and items 70131 and 70132.
Pub. L. 111–281, title II, § 208(b), title VIII, §§ 801(b),
804(b), 806(c)(2)(C), 807(b), 820(b), 821(c), Oct. 15, 2010, 124
Stat. 2912, 2989, 2991, 2993, 3001, 3003, substituted ‘‘Deployable, specialized forces’’ for ‘‘Maritime safety and
security teams’’ in item 70106 and ‘‘Actions and assistance for foreign ports or facilities and United States
territories’’ for ‘‘Actions and assistance for foreign
ports and United States territories’’ in item 70110,
struck out item 70117 ‘‘Firearms, arrests, and seizure of
property’’, and added items 70122 to 70125.
2006—Pub. L. 109–347, title I, § 108(d), title II, § 233(d),
Oct. 13, 2006, 120 Stat. 1893, 1918, added item 70107A and
substituted ‘‘Actions and assistance for foreign ports
and United States territories’’ for ‘‘Actions when foreign ports not maintaining effective antiterrorism
measures’’ in item 70110.
Pub. L. 109–304, § 15(33)(E), Oct. 6, 2006, 120 Stat. 1705,
which directed the substitution of items 70117 to 70121
1 So
2 So

§ 70101

TITLE 46—SHIPPING

in original. Probably should be followed by a period.
in original. Does not conform to section catchline.

for items 70117 to 70119, was executed by making the
substitution for items 70117 ‘‘Civil penalty’’, 70118 ‘‘Enforcement’’, 70117 ‘‘In rem liability for civil penalties
and certain costs’’, 70118 ‘‘Enforcement by injunction
or withholding of clearance’’, and 70119 ‘‘Civil penalty’’
to reflect the probable intent of Congress.
Pub. L. 109–241, § 901(l)(5), July 11, 2006, 120 Stat. 565,
which directed amendment of analysis by striking
items 70117 through the second 70119 and inserting
items 70117 ‘‘Firearms, arrests, and seizure of property’’, 70118 ‘‘Enforcement by State and local officers’’,
70119 ‘‘Civil penalty’’, 70120 ‘‘In rem liability for civil
penalties and certain costs’’, and 70121 ‘‘Withholding of
clearance’’, could not be executed because only one
item 70119 appeared.
2004—Pub. L. 108–293, title VIII, § 802(c), Aug. 9, 2004,
118 Stat. 1080, added items 70117 ‘‘In rem liability for
civil penalties and certain costs’’, 70118 ‘‘Enforcement
by injunction or withholding of clearance’’, and 70119
‘‘Civil penalty’’, and struck out former item 70119 ‘‘Enforcement by State and local officers’’.
Pub. L. 108–293, title VIII, § 801(b), Aug. 9, 2004, 118
Stat. 1078, added items 70118 ‘‘Enforcement’’ and 70119
‘‘Enforcement by State and local officers’’.

SUBCHAPTER I—GENERAL
AMENDMENTS
Pub. L. 111–330, § 1(17)(A), Dec. 22, 2010, 124 Stat. 3570,
amended Pub. L. 111–281, title VIII, § 828(c)(1), Oct. 15,
2010, 124 Stat. 3007, which added subchapter I heading.

§ 70101. Definitions
For the purpose of this chapter:
(1) The term ‘‘Area Maritime Transportation
Security Plan’’ means an Area Maritime
Transportation Security Plan prepared under
section 70103(b).
(2) The term ‘‘facility’’ means any structure
or facility of any kind located in, on, under, or
adjacent to any waters subject to the jurisdiction of the United States.
(3) The term ‘‘National Maritime Transportation Security Plan’’ means the National
Maritime Transportation Security Plan prepared and published under section 70103(a).
(4) The term ‘‘owner or operator’’ means—
(A) in the case of a vessel, any person owning, operating, or chartering by demise, such
vessel; and
(B) in the case of a facility, any person
owning, leasing, or operating such facility.
(5) The term ‘‘Secretary’’ means the Secretary of the department in which the Coast
Guard is operating.
(6) The term ‘‘transportation security incident’’ means a security incident resulting in a
significant loss of life, environmental damage,
transportation system disruption, or economic
disruption in a particular area. In this paragraph, the term ‘‘economic disruption’’ does
not include a work stoppage or other employee-related action not related to terrorism
and resulting from an employee-employer dispute.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2068; amended Pub. L. 109–347, title
I, § 124, Oct. 13, 2006, 120 Stat. 1900.)
AMENDMENTS
2006—Par. (6). Pub. L. 109–347 inserted at end ‘‘In this
paragraph, the term ‘economic disruption’ does not include a work stoppage or other employee-related action

§ 70101

TITLE 46—SHIPPING

not related to terrorism and resulting from an employee-employer dispute.’’
REGULATIONS
Pub. L. 107–295, title I, § 102(d), Nov. 25, 2002, 116 Stat.
2084, provided that:
‘‘(1) INTERIM FINAL RULE AUTHORITY.—The Secretary
shall issue an interim final rule as a temporary regulation implementing this section [enacting this subtitle
and provisions set out as notes under sections 70104 and
70114 of this title] (including the amendments made by
this section) as soon as practicable after the date of enactment of this section [Nov. 25, 2002], without regard
to the provisions of chapter 5 of title 5, United States
Code. All regulations prescribed under the authority of
this subsection that are not earlier superseded by final
regulations shall expire not later than 1 year after the
date of enactment of this Act [Nov. 25, 2002].
‘‘(2) INITIATION OF RULEMAKING.—The Secretary may
initiate a rulemaking to implement this section (including the amendments made by this section) as soon
as practicable after the date of enactment of this section. The final rule issued pursuant to that rulemaking
may supersede the interim final rule promulgated
under this subsection.’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
WATERSIDE SECURITY OF ESPECIALLY HAZARDOUS
CARGO
Pub. L. 111–281, title VIII, § 812, Oct. 15, 2010, 124 Stat.
2995, provided that:
‘‘(a) NATIONAL STUDY.—
‘‘(1) IN GENERAL.—The Secretary of the department
in which the Coast Guard is operating shall—
‘‘(A) initiate a national study to identify measures to improve the security of maritime transportation of especially hazardous cargo; and
‘‘(B) coordinate with other Federal agencies, the
National Maritime Security Advisory Committee,
and appropriate State and local government officials through the Area Maritime Security Committees and other existing coordinating committees, to
evaluate the waterside security of vessels carrying,
and waterfront facilities handling, especially hazardous cargo.
‘‘(2) MATTERS TO BE INCLUDED.—The study conducted under this subsection shall include—
‘‘(A) an analysis of existing risk assessment information relating to waterside security generated by
the Coast Guard and Area Maritime Security Committees as part of the Maritime Security Risk
Analysis Model;
‘‘(B) a review and analysis of appropriate roles
and responsibilities of maritime stakeholders, including Federal, State, and local law enforcement
and industry security personnel, responsible for waterside security of vessels carrying, and waterfront
facilities handling, especially hazardous cargo, including—
‘‘(i) the number of ports in which State and
local law enforcement entities are providing any
services to enforce Coast Guard-imposed security
zones around vessels transiting to, through, or
from United States ports or to conduct security
patrols in United States ports;
‘‘(ii) the number of formal agreements entered
into between the Coast Guard and State and local
law enforcement entities to engage State and
local law enforcement entities in the enforcement

Page 418

of Coast Guard-imposed security zones around
vessels transiting to, through, or from United
States ports or the conduct of port security patrols in United States ports, the duration of those
agreements, and the aid that State and local entities are engaged to provide through such agreements;
‘‘(iii) the extent to which the Coast Guard has
set national standards for training, equipment,
and resources to ensure that State and local law
enforcement entities engaged in enforcing Coast
Guard-imposed security zones around vessels
transiting to, through, or from United States
ports or in conducting port security patrols in
United States ports (or both) can deter to the
maximum extent practicable a transportation security incident;
‘‘(iv) the extent to which the Coast Guard has
assessed the ability of State and local law enforcement entities to carry out the security assignments that they have been engaged to perform, including their ability to meet any national
standards for training, equipment, and resources
that have been established by the Coast Guard in
order to ensure that those entities can deter to
the maximum extent practicable a transportation
security incident;
‘‘(v) the extent to which State and local law enforcement entities are able to meet national
standards for training, equipment, and resources
established by the Coast Guard to ensure that
those entities can deter to the maximum extent
practicable a transportation security incident;
‘‘(vi) the differences in law enforcement authority, and particularly boarding authority, between
the Coast Guard and State and local law enforcement entities, and the impact that these differences have on the ability of State and local law
enforcement entities to provide the same level of
security that the Coast Guard provides during the
enforcement of Coast Guard-imposed security
zones and the conduct of security patrols in
United States ports; and
‘‘(vii) the extent of resource, training, and
equipment differences between State and local
law enforcement entities and the Coast Guard
units engaged in enforcing Coast Guard-imposed
security zones around vessels transiting to,
through, or from United States ports or conducting security patrols in United States ports;
‘‘(C) recommendations for risk-based security
measures to improve waterside security of vessels
carrying, and waterfront facilities handling, especially hazardous cargo; and
‘‘(D) identification of security funding alternatives, including an analysis of the potential for
cost-sharing by the public and private sectors as
well as any challenges associated with such costsharing.
‘‘(3) INFORMATION PROTECTION.—In carrying out the
coordination necessary to effectively complete the
study, the Commandant shall implement measures to
ensure the protection of any sensitive security information, proprietary information, or classified information collected, reviewed, or shared during collaborative engagement with maritime stakeholders and
other Government entities, except that nothing in
this paragraph shall constitute authority to withhold
information from—
‘‘(A) the Congress; or
‘‘(B) first responders requiring such information
for the protection of life or property.
‘‘(4) REPORT.—Not later than 12 months after the
date of enactment of this Act [Oct. 15, 2010], the Secretary of the Department in which the Coast Guard is
operating shall submit to the Committees on Homeland Security and Transportation and Infrastructure
of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the
Senate a report on the results of the study under this
subsection.

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TITLE 46—SHIPPING

‘‘(b) NATIONAL STRATEGY.—Not later than 6 months
after submission of the report required by subsection
(a), the Secretary of the department in which the Coast
Guard is operating shall develop, in conjunction with
appropriate Federal agencies, a national strategy for
the waterside security of vessels carrying, and waterfront facilities handling, especially hazardous cargo.
The strategy shall utilize the results of the study required by subsection (a).
‘‘(c) SECURITY OF ESPECIALLY HAZARDOUS CARGO.—
[Amended section 70103 of this title.]
‘‘(d) DEFINITIONS.—For the purposes of this section,
the follow[ing] definitions apply:
‘‘(1) ESPECIALLY HAZARDOUS CARGO.—The term ‘especially hazardous cargo’ means anhydrous ammonia,
ammonium nitrate, chlorine, liquefied natural gas,
liquiefied petroleum gas, and any other substance,
material, or group or class of material, in a particular amount and form that the Secretary determines
by regulation poses a significant risk of creating a
transportation security incident while being transported in maritime commerce.
‘‘(2) AREA MARITIME SECURITY COMMITTEE.—The
term ‘Area Maritime Security Committee’ means
each of those committees responsible for producing
Area Maritime Transportation Security Plans under
chapter 701 of title 46, United States Code.
‘‘(3) TRANSPORTATION SECURITY INCIDENT.—The term
‘transportation security incident’ has the same
meaning as that term has in section 70101 of title 46,
United States Code.’’
RISK BASED RESOURCE ALLOCATION
Pub. L. 111–281, title VIII, § 827, Oct. 15, 2010, 124 Stat.
3004, provided that:
‘‘(a) NATIONAL STANDARD.—Within 1 year after the
date of enactment of this Act [Oct. 15, 2010], in carrying
out chapter 701 of title 46, United States Code, the Secretary of the department in which the Coast Guard is
operating shall develop and utilize a national standard
and formula for prioritizing and addressing assessed security risks at United State ports and facilities on or
adjacent to the waterways of the United States, such as
the Maritime Security Risk Assessment Model that has
been tested by the Department of Homeland Security.
‘‘(b) USE BY MARITIME SECURITY COMMITTEES.—Within
2 years after the date of enactment of this Act, the Secretary shall require each Area Maritime Security Committee to use this standard to regularly evaluate each
port’s assessed risk and prioritize how to mitigate the
most significant risks.
‘‘(c) OTHER USES OF STANDARD.—The Secretary
shall utilize the standard when considering departmental resource allocations and grant making decisions.
‘‘(d) USE OF MARITIME RISK ASSESSMENT MODEL.—
Within 180 days after the date of enactment of this Act,
the Secretary of the department in which the Coast
Guard is operating shall make the United States Coast
Guard’s Maritime Security Risk Assessment Model
available, in an unclassified version, on a limited basis
to regulated vessels and facilities to conduct true risk
assessments of their own facilities and vessels using
the same criteria employed by the Coast Guard when
evaluating a port area, facility, or vessel.’’
WATCH LISTS FOR PASSENGERS ABOARD VESSELS
Pub. L. 108–458, title IV, § 4071, Dec. 17, 2004, 118 Stat.
3729, provided that:
‘‘(a) WATCH LISTS.—
‘‘(1) IN GENERAL.—As soon as practicable but not
later than 180 days after the date of the enactment of
this Act [Dec. 17, 2004], the Secretary of Homeland
Security shall—
‘‘(A) implement a procedure under which the Department of Homeland Security compares information about passengers and crew who are to be carried aboard a cruise ship with a comprehensive,
consolidated database containing information

§ 70101

about known or suspected terrorists and their associates;
‘‘(B) use the information obtained by comparing
the passenger and crew information with the information in the database to prevent known or suspected terrorists and their associates from boarding
such ships or to subject them to specific additional
security scrutiny, through the use of ‘no transport’
and ‘automatic selectee’ lists or other means.
‘‘(2) WAIVER.—The Secretary may waive the requirement in paragraph (1)(B) with respect to cruise
ships embarking at foreign ports if the Secretary determines that the application of such requirement to
such cruise ships is impracticable.
‘‘(b) COOPERATION FROM OPERATORS OF CRUISE
SHIPS.—The Secretary of Homeland Security shall by
rulemaking require operators of cruise ships to provide
the passenger and crew information necessary to implement the procedure required by subsection (a).
‘‘(c) MAINTENANCE OF ACCURACY AND INTEGRITY OF ‘NO
TRANSPORT’ AND ‘AUTOMATIC SELECTEE’ LISTS.—
‘‘(1) WATCH LIST DATABASE.—The Secretary of
Homeland Security, in consultation with the Terrorist Screening Center, shall develop guidelines, policies, and operating procedures for the collection, removal, and updating of data maintained, or to be
maintained, in the ‘no transport’ and ‘automatic selectee’ lists described in subsection (a)(1) that are designed to ensure the accuracy and integrity of the
lists.
‘‘(2) ACCURACY OF ENTRIES.—In developing the ‘no
transport’ and ‘automatic selectee’ lists under subsection (a)(1)(B), the Secretary shall establish a simple and timely method for correcting erroneous entries, for clarifying information known to cause false
hits or misidentification errors, and for updating relevant information that is dispositive in the passenger
and crew screening process. The Secretary shall also
establish a process to provide an individual whose
name is confused with, or similar to, a name in the
watch list database with a means of demonstrating
that such individual is not the person named in the
database.
‘‘(d) CRUISE SHIP DEFINED.—In this section, the term
‘cruise ship’ means a vessel on an international voyage
that embarks or disembarks passengers at a port of
United States jurisdiction to which subpart C of part
160 of title 33, Code of Federal Regulations, applies and
that provides overnight accommodations.’’
VESSEL AND INTERMODAL SECURITY REPORTS
Pub. L. 108–293, title VIII, § 809(g)–(i), (k), Aug. 9, 2004,
118 Stat. 1087, 1088, provided that:
‘‘(g) EVALUATION OF CARGO INSPECTION TARGETING
SYSTEM FOR INTERNATIONAL INTERMODAL CARGO CONTAINERS.—Within 180 days after the date of the enactment of this Act [Aug. 9, 2004] and annually thereafter,
the Inspector General of the department in which the
Coast Guard is operating shall prepare a report that includes an assessment of—
‘‘(1) the effectiveness of the current tracking system to determine whether it is adequate to prevent
international intermodal containers from being used
for purposes of terrorism;
‘‘(2) the sources of information, and the quality of
the information at the time of reporting, used by the
system to determine whether targeting information
is collected from the best and most credible sources
and evaluate data sources to determine information
gaps and weaknesses;
‘‘(3) the targeting system for reporting and analyzing inspection statistics, as well as testing effectiveness;
‘‘(4) the competence and training of employees operating the system to determine whether they are
sufficiently capable to detect potential terrorist
threats; and
‘‘(5) whether the system is an effective system to
detect potential acts of terrorism and whether additional steps need to be taken in order to remedy defi-

§ 70101

TITLE 46—SHIPPING

ciencies in targeting international intermodal containers for inspection.
‘‘(h) ACTION REPORT.—If the Inspector General of the
department in which the Coast Guard is operating determines in any of the reports prepared under subsection (g) that the targeting system is insufficiently
effective as a means of detecting potential acts of terrorism utilizing international intermodal containers,
then the Secretary of the department in which the
Coast Guard is operating shall, within 90 days, submit
a report to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure [of the] House of
Representatives on what actions will be taken to correct deficiencies identified in the Inspector General Report.
‘‘(i) COMPLIANCE WITH SECURITY STANDARDS ESTABLISHED PURSUANT TO MARITIME TRANSPORTATION SECURITY PLANS.—Within 180 days after the date of the enactment of this Act [Aug. 9, 2004] and annually thereafter, the Secretary of the department in which the
Coast Guard is operating shall prepare a report on compliance and steps taken to ensure compliance by ports,
terminals, vessel operators, and shippers with security
standards established pursuant to section 70103 of title
46, United States Code. The reports shall also include a
summary of security standards established pursuant to
such section during the previous year. The Secretary
shall submit the reports to the Committee on Commerce, Science, and Transportation of the Senate and
the Committee on Transportation and Infrastructure of
the House of Representatives.
‘‘(k) REPORT AND PLAN FORMATS.—The Secretary and
the Inspector General of the department in which the
Coast Guard is operating may submit any plan or report required by this section in both classified and redacted formats, if the Secretary determines that it is
appropriate or necessary.’’
FINDINGS
Pub. L. 107–295, title I, § 101, Nov. 25, 2002, 116 Stat.
2066, provided that:
‘‘The Congress makes the following findings:
‘‘(1) There are 361 public ports in the United States
that are an integral part of our Nation’s commerce.
‘‘(2) United States ports handle over 95 percent of
United States overseas trade. The total volume of
goods imported and exported through ports is expected to more than double over the next 20 years.
‘‘(3) The variety of trade and commerce carried out
at ports includes bulk cargo, containerized cargo,
passenger transport and tourism, and intermodal
transportation systems that are complex to secure.
‘‘(4) The United States is increasingly dependent on
imported energy for a substantial share of its energy
supply, and a disruption of that share of supply would
seriously harm consumers and our economy.
‘‘(5) The top 50 ports in the United States account
for about 90 percent of all the cargo tonnage. Twentyfive United States ports account for 98 percent of all
container shipments. Cruise ships visiting foreign
destinations embark from at least 16 ports. Ferries in
the United States transport 113,000,000 passengers and
32,000,000 vehicles per year.
‘‘(6) Ports often are a major locus of Federal crime,
including drug trafficking, cargo theft, and smuggling of contraband and aliens.
‘‘(7) Ports are often very open and exposed and are
susceptible to large scale acts of terrorism that could
cause a large loss of life or economic disruption.
‘‘(8) Current inspection levels of containerized
cargo are insufficient to counter potential security
risks. Technology is currently not adequately deployed to allow for the nonintrusive inspection of
containerized cargo.
‘‘(9) The cruise ship industry poses a special risk
from a security perspective.
‘‘(10) Securing entry points and other areas of port
facilities and examining or inspecting containers
would increase security at United States ports.

Page 420

‘‘(11) Biometric identification procedures for individuals having access to secure areas in port facilities are important tools to deter and prevent port
cargo crimes, smuggling, and terrorist actions.
‘‘(12) United States ports are international boundaries that—
‘‘(A) are particularly vulnerable to breaches in security;
‘‘(B) may present weaknesses in the ability of the
United States to realize its national security objectives; and
‘‘(C) may serve as a vector or target for terrorist
attacks aimed at the United States.
‘‘(13) It is in the best interests of the United
States—
‘‘(A) to have a free flow of interstate and foreign
commerce and to ensure the efficient movement of
cargo;
‘‘(B) to increase United States port security by
establishing improving communication among law
enforcement officials responsible for port security;
‘‘(C) to formulate requirements for physical port
security, recognizing the different character and
nature of United States port facilities, and to require the establishment of security programs at
port facilities;
‘‘(D) to provide financial assistance to help the
States and the private sector to increase physical
security of United States ports;
‘‘(E) to invest in long-term technology to facilitate the private sector development of technology
that will assist in the nonintrusive timely detection of crime or potential crime at United States
ports;
‘‘(F) to increase intelligence collection on cargo
and intermodal movements to address areas of potential threat to safety and security; and
‘‘(G) to promote private sector procedures that
provide for in-transit visibility and support law enforcement efforts directed at managing the security
risks of cargo shipments.
‘‘(14) On April 27, 1999, the President established the
Interagency Commission on Crime and Security in
United States Ports to undertake a comprehensive
study of the nature and extent of the problem of
crime in our ports, as well as the ways in which governments at all levels are responding. The Commission concluded that frequent crimes in ports include
drug smuggling, illegal car exports, fraud, and cargo
theft. Internal conspiracies are an issue at many
ports and contribute to Federal crime. Criminal organizations are exploiting weak security at ports to
commit a wide range of cargo crimes. Intelligence
and information sharing among law enforcement
agencies needs to be improved and coordinated at
many ports. A lack of minimum physical and personnel security standards at ports and related facilities
leaves many ports and port users very vulnerable. Access to ports and operations within ports is often uncontrolled. Security-related and detection-related
equipment, such as small boats, cameras, large-scale
x-ray machines, and vessel tracking devices, are lacking at many ports.
‘‘(15) The International Maritime Organization and
other similar international organizations are currently developing a new maritime security system
that contains the essential elements for enhancing
global maritime security. Therefore, it is in the best
interests of the United States to implement new
international instruments that establish such a system.’’
MARITIME SECURITY PROFESSIONAL TRAINING
Pub. L. 107–295, title I, § 109, Nov. 25, 2002, 116 Stat.
2090, provided that:
‘‘(a) IN GENERAL.—
‘‘(1) DEVELOPMENT OF STANDARDS.—Not later than 6
months after the date of enactment of this Act [Nov.
25, 2002], the Secretary of Transportation shall develop standards and curriculum to allow for the

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§ 70102

TITLE 46—SHIPPING

training and certification of maritime security professionals. In developing these standards and curriculum, the Secretary shall consult with the National
Maritime Security Advisory Committee established
under section 70112 of title 46, United States Code, as
amended by this Act.
‘‘(2) SECRETARY TO CONSULT ON STANDARDS.—In developing standards under this section, the Secretary
may, without regard to the Federal Advisory Committee Act (5 U.S.C. App.), consult with the Federal
Law Enforcement Training Center, the United States
Merchant Marine Academy’s Global Maritime and
Transportation School, the Maritime Security Council, the International Association of Airport and Port
Police, the National Cargo Security Council, and any
other Federal, State, or local government or law enforcement agency or private organization or individual determined by the Secretary to have pertinent
expertise.
‘‘(b) MINIMUM STANDARDS.—The standards established
by the Secretary under subsection (a) shall include the
following elements:
‘‘(1) The training and certification of maritime security professionals in accordance with accepted law
enforcement and security guidelines, policies, and
procedures, including, as appropriate, recommendations for incorporating a background check process
for personnel trained and certified in foreign ports.
‘‘(2) The training of students and instructors in all
aspects of prevention, detection, investigation, and
reporting of criminal activities in the international
maritime environment.
‘‘(3) The provision of off-site training and certification courses and certified personnel at United
States and foreign ports used by United Statesflagged vessels, or by foreign-flagged vessels with
United States citizens as passengers or crewmembers,
to develop and enhance security awareness and practices.
‘‘(c) TRAINING PROVIDED TO LAW ENFORCEMENT AND
SECURITY PERSONNEL.—
‘‘(1) IN GENERAL.—The Secretary is authorized to
make the training opportunities provided under this
section available to any Federal, State, local, and
private law enforcement or maritime security personnel in the United States or to personnel employed in
foreign ports used by vessels with United States citizens as passengers or crewmembers.
‘‘(2) ACADEMIES AND SCHOOLS.—The Secretary may
provide training under this section at—
‘‘(A) each of the 6 State maritime academies;
‘‘(B) the United States Merchant Marine Academy;
‘‘(C) the Appalachian Transportation Institute;
and
‘‘(D) other security training schools in the United
States.
‘‘(d) USE OF CONTRACT RESOURCES.—The Secretary
may employ Federal and contract resources to train
and certify maritime security professionals in accordance with the standards and curriculum developed
under this Act [see Tables for classification].
‘‘(e) ANNUAL REPORT.—The Secretary shall transmit
an annual report to the Senate Committee on Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and Infrastructure on the expenditure of appropriated funds
and the training under this section.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary to carry
out this section $5,500,000 for each of fiscal years 2003
through 2008.’’
[For transfer of functions, personnel, assets, and liabilities of the Federal Law Enforcement Training Center of the Department of the Treasury to the Secretary
of Homeland Security, and for treatment of related references, see sections 203(4), 551(d), 552(d), and 557 of
Title 6, Domestic Security, and the Department of
Homeland Security Reorganization Plan of November
25, 2002, as modified, set out as a note under section 542
of Title 6.]

REPORT ON TRAINING CENTER
Pub. L. 107–295, title I, § 110(b), Nov. 25, 2002, 116 Stat.
2091, provided that: ‘‘The Commandant of the United
States Coast Guard, in conjunction with the Secretary
of the Navy, shall submit to Congress a report, at the
time they submit their fiscal year 2005 budget, on the
life cycle costs and benefits of creating a Center for
Coastal and Maritime Security. The purpose of the Center would be to provide an integrated training complex
to prevent and mitigate terrorist threats against coastal and maritime assets of the United States, including
ports, harbors, ships, dams, reservoirs, and transport
nodes.’’
REPORT ON FOREIGN-FLAG VESSELS
Pub. L. 107–295, title I, § 112, Nov. 25, 2002, 116 Stat.
2092, which required the Secretary of the department in
which the Coast Guard is operating to provide an annual report regarding all nations whose flag vessels
have entered United States ports in the previous year,
a separate list of those nations whose registered flag
vessels present certain irregularities, actions taken to
improve transparency and security of vessel registration procedures in those nations, and recommendations
for legislative or other actions to improve security of
United States ports, was repealed by Pub. L. 111–207,
§ 4(a)(2), July 27, 2010, 124 Stat. 2251.

§ 70102. United States facility and vessel vulnerability assessments
(a) INITIAL ASSESSMENTS.—The Secretary shall
conduct an assessment of vessel types and
United States facilities on or adjacent to the
waters subject to the jurisdiction of the United
States to identify those vessel types and United
States facilities that pose a high risk of being
involved in a transportation security incident.
(b) FACILITY AND VESSEL ASSESSMENTS.—(1)
Based on the information gathered under subsection (a) of this section and by not later than
December 31, 2004, the Secretary shall conduct a
detailed vulnerability assessment of the facilities and vessels that may be involved in a transportation security incident. The vulnerability
assessment shall include the following:
(A) Identification and evaluation of critical
assets and infrastructures.
(B) Identification of the threats to those assets and infrastructures.
(C) Identification of weaknesses in physical
security, passenger and cargo security, structural integrity, protection systems, procedural policies, communications systems,
transportation infrastructure, utilities, contingency response, and other areas as determined by the Secretary.
(2) Upon completion of an assessment under
this subsection for a facility or vessel, the Secretary shall provide the owner or operator with
a copy of the vulnerability assessment for that
facility or vessel.
(3) The Secretary shall update each vulnerability assessment conducted under this section
at least every 5 years.
(4) In lieu of conducting a facility or vessel
vulnerability assessment under paragraph (1),
the Secretary may accept an alternative assessment conducted by or on behalf of the owner or
operator of the facility or vessel if the Secretary
determines that the alternative assessment includes the matters required under paragraph (1).
(c) SHARING OF ASSESSMENT INTEGRATION OF
PLANS AND EQUIPMENT.—The owner or operator

§ 70103

TITLE 46—SHIPPING

of a facility, consistent with any Federal security restrictions, shall—
(1) make a current copy of the vulnerability
assessment conducted under subsection (b)
available to the port authority with jurisdiction of the facility and appropriate State or
local law enforcement agencies; and
(2) integrate, to the maximum extent practical, any security system for the facility with
compatible systems operated or maintained by
the appropriate State, law enforcement agencies, and the Coast Guard.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2068; amended Pub. L. 108–458, title
IV, § 4072(b), Dec. 17, 2004, 118 Stat. 3730; Pub. L.
111–281, title VIII, § 822, Oct. 15, 2010, 124 Stat.
3003.)
AMENDMENTS
2010—Subsec. (c). Pub. L. 111–281 added subsec. (c).
2004—Subsec. (b)(1). Pub. L. 108–458 substituted ‘‘and
by not later than December 31, 2004, the Secretary’’ for
‘‘, the Secretary’’ in introductory provisions.

§ 70103. Maritime transportation security plans
(a) NATIONAL MARITIME TRANSPORTATION SECUPLAN.—(1) Not later than April 1, 2005, the
Secretary shall prepare a National Maritime
Transportation Security Plan for deterring and
responding to a transportation security incident.
(2) The National Maritime Transportation Security Plan shall provide for efficient, coordinated, and effective action to deter and minimize damage from a transportation security incident, and shall include the following:
(A) Assignment of duties and responsibilities
among Federal departments and agencies and
coordination with State and local governmental agencies.
(B) Identification of security resources.
(C) Procedures and techniques to be employed in deterring a national transportation
security incident.
(D) Establishment of procedures for the coordination of activities of—
(i) Coast Guard maritime security teams
established under this chapter; and
(ii) Federal Maritime Security Coordinators required under this chapter.
RITY

(E) A system of surveillance and notice designed to safeguard against as well as ensure
earliest possible notice of a transportation security incident and imminent threats of such
a security incident to the appropriate State
and Federal agencies.
(F) Establishment of criteria and procedures
to ensure immediate and effective Federal
identification of a transportation security incident, or the substantial threat of such a security incident.
(G) Designation of—
(i) areas for which Area Maritime Transportation Security Plans are required to be
prepared under subsection (b); and
(ii) a Coast Guard official who shall be the
Federal Maritime Security Coordinator for
each such area.
(H) A risk-based system for evaluating the
potential for violations of security zones des-

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ignated by the Secretary on the waters subject
to the jurisdiction of the United States.
(I) A recognition of certified systems of
intermodal transportation.
(J) A plan for ensuring that the flow of cargo
through United States ports is reestablished
as efficiently and quickly as possible after a
transportation security incident.
(3) The Secretary shall, as the Secretary considers advisable, revise or otherwise amend the
National Maritime Transportation Security
Plan.
(4) Actions by Federal agencies to deter and
minimize damage from a transportation security incident shall, to the greatest extent possible, be in accordance with the National Maritime Transportation Security Plan.
(5) The Secretary shall inform vessel and facility owners or operators of the provisions in the
National Transportation Security Plan that the
Secretary considers necessary for security purposes.
(b) AREA MARITIME TRANSPORTATION SECURITY
PLANS.—(1) The Federal Maritime Security Coordinator designated under subsection (a)(2)(G)
for an area shall—
(A) submit to the Secretary an Area Maritime Transportation Security Plan for the
area; and
(B) solicit advice from the Area Security Advisory Committee required under this chapter,
for the area to assure preplanning of joint deterrence efforts, including appropriate procedures for deterrence of a transportation security incident.
(2) The Area Maritime Transportation Security Plan for an area shall—
(A) when implemented in conjunction with
the National Maritime Transportation Security Plan, be adequate to deter a transportation security incident in or near the area to
the maximum extent practicable;
(B) describe the area and infrastructure covered by the plan, including the areas of population or special economic, environmental, or
national security importance that might be
damaged by a transportation security incident;
(C) describe in detail how the plan is integrated with other Area Maritime Transportation Security Plans, and with facility security plans and vessel security plans under this
section;
(D) include consultation and coordination
with the Department of Defense on matters relating to Department of Defense facilities and
vessels;
(E) establish area response and recovery protocols to prepare for, respond to, mitigate
against, and recover from a transportation security incident consistent with section 202 of
the SAFE Port Act of 2006 (6 U.S.C. 942) and
subsection (a) of this section;
(F) include any other information the Secretary requires;
(G) include a salvage response plan—
(i) to identify salvage equipment capable
of restoring operational trade capacity; and
(ii) to ensure that the waterways are
cleared and the flow of commerce through

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United States ports is reestablished as efficiently and quickly as possible after a maritime transportation security incident; and
(H) be updated at least every 5 years by the
Federal Maritime Security Coordinator.
(3) The Secretary shall—
(A) review and approve Area Maritime
Transportation Security Plans under this subsection; and
(B) periodically review previously approved
Area Maritime Transportation Security Plans.
(4) In security zones designated by the Secretary in each Area Maritime Transportation
Security Plan, the Secretary shall consider—
(A) the use of public/private partnerships to
enforce security within the security zones,
shoreside protection alternatives, and the environmental, public safety, and relative effectiveness of such alternatives; and
(B) technological means of enhancing the security zones of port, territorial waters, and
waterways of the United States.
(c) VESSEL AND FACILITY SECURITY PLANS.—(1)
Within 6 months after the prescription of interim final regulations on vessel and facility security plans, an owner or operator of a vessel or
facility described in paragraph (2) shall prepare
and submit to the Secretary a security plan for
the vessel or facility, for deterring a transportation security incident to the maximum extent
practicable.
(2) The vessels and facilities referred to in
paragraph (1)—
(A) except as provided in subparagraph (B),
are vessels and facilities that the Secretary
believes may be involved in a transportation
security incident; and
(B) do not include any vessel or facility
owned or operated by the Department of Defense.
(3) A security plan required under this subsection shall—
(A) be consistent with the requirements of
the National Maritime Transportation Security Plan and Area Maritime Transportation
Security Plans;
(B) identify the qualified individual having
full authority to implement security actions,
and require immediate communications between that individual and the appropriate
Federal official and the persons providing personnel and equipment pursuant to subparagraph (C);
(C) include provisions for—
(i) establishing and maintaining physical
security, passenger and cargo security, and
personnel security;
(ii) establishing and controlling access to
secure areas of the vessel or facility, including access by persons engaged in the surface
transportation of intermodal containers in
or out of a port facility;
(iii) procedural security policies;
(iv) communications systems; and
(v) other security systems;
(D) identify, and ensure by contract or other
means approved by the Secretary, the availability of security measures necessary to deter

§ 70103

to the maximum extent practicable a transportation security incident or a substantial
threat of such a security incident;
(E) describe the training, periodic unannounced drills, and security actions of persons
on the vessel or at the facility, to be carried
out under the plan to deter to the maximum
extent practicable a transportation security
incident, or a substantial threat of such a security incident;
(F) provide a strategy and timeline for conducting training and periodic unannounced
drills;
(G) be updated at least every 5 years;
(H) be resubmitted for approval of each
change to the vessel or facility that may substantially affect the security of the vessel or
facility; and
(I) in the case of a security plan for a facility, be resubmitted for approval of each
change in the ownership or operator of the facility that may substantially affect the security of the facility.
(4) The Secretary shall—
(A) promptly review each such plan;
(B) require amendments to any plan that
does not meet the requirements of this subsection;
(C) approve any plan that meets the requirements of this subsection; and
(D) subject to the availability of appropriations, verify the effectiveness of each such facility security plan periodically, but not less
than 2 times per year, at least 1 of which shall
be an inspection of the facility that is conducted without notice to the facility.
(5) A vessel or facility for which a plan is required to be submitted under this subsection
may not operate after the end of the 12-month
period beginning on the date of the prescription
of interim final regulations on vessel and facility security plans, unless—
(A) the plan has been approved by the Secretary; and
(B) the vessel or facility is operating in compliance with the plan.
(6) Notwithstanding paragraph (5), the Secretary may authorize a vessel or facility to operate without a security plan approved under
this subsection, until not later than 1 year after
the date of the submission to the Secretary of a
plan for the vessel or facility, if the owner or operator of the vessel or facility certifies that the
owner or operator has ensured by contract or
other means approved by the Secretary to deter
to the maximum extent practicable a transportation security incident or a substantial threat
of such a security incident.
(7) The Secretary shall require each owner or
operator of a vessel or facility located within or
adjacent to waters subject to the jurisdiction of
the United States to implement any necessary
interim security measures, including cargo security programs, to deter to the maximum extent
practicable a transportation security incident
until the security plan for that vessel or facility
operator is approved.
(8)(A) The Secretary shall require that the
qualified individual having full authority to implement security actions for a facility described

§ 70103

TITLE 46—SHIPPING

in paragraph (2) shall be a citizen of the United
States.
(B) The Secretary may waive the requirement
of subparagraph (A) with respect to an individual if the Secretary determines that it is appropriate to do so based on a complete background
check of the individual and a review of all terrorist watch lists to ensure that the individual
is not identified on any such terrorist watch
list.
(d) NONDISCLOSURE OF INFORMATION.—
(1) IN GENERAL.—Information developed
under this section or sections 70102, 70104, and
70108 is not required to be disclosed to the public, including—
(A) facility security plans, vessel security
plans, and port vulnerability assessments;
and
(B) other information related to security
plans, procedures, or programs for vessels or
facilities authorized under this section or
sections 70102, 70104, and 70108.
(2) LIMITATIONS.—Nothing in paragraph (1)
shall be construed to authorize the designation of information as sensitive security information (as defined in section 1520.5 of title 49,
Code of Federal Regulations)—
(A) to conceal a violation of law, inefficiency, or administrative error;
(B) to prevent embarrassment to a person,
organization, or agency;
(C) to restrain competition; or
(D) to prevent or delay the release of information that does not require protection in
the interest of transportation security, including basic scientific research information
not clearly related to transportation security.
(e) ESPECIALLY HAZARDOUS CARGO.—
(1) ENFORCEMENT OF SECURITY ZONES.—Consistent with other provisions of Federal law,
the Coast Guard shall coordinate and be responsible for the enforcement of any Federal
security zone established by the Coast Guard
around a vessel containing especially hazardous cargo. The Coast Guard shall allocate
available resources so as to deter and respond
to a transportation security incident, to the
maximum extent practicable, and to protect
lives or protect property in danger.
(2) RESOURCE DEFICIENCY REPORTING.—
(A) IN GENERAL.—When the Secretary submits the annual budget request for a fiscal
year for the department in which the Coast
Guard is operating to the Office of Management and Budget, the Secretary shall provide to the Committees on Homeland Security and Transportation and Infrastructure
of the House of Representatives and the
Committee on Commerce, Science, and
Transportation of the Senate a report that
includes—
(i) for the last full fiscal year preceding
the report, a statement of the number of
security zones established for especially
hazardous cargo shipments;
(ii) for the last full fiscal year preceding
the report, a statement of the number of
especially hazardous cargo shipments provided a waterborne security escort, sub-

Page 424

divided by Federal, State, local, or private
security; and
(iii) an assessment as to any additional
vessels, personnel, infrastructure, and
other resources necessary to provide waterborne escorts to those especially hazardous cargo shipments for which a security zone is established.
CARGO DEterm ‘‘especially hazardous cargo’’ means anhydrous
ammonia, ammonium nitrate, chlorine, liquefied natural gas, liquiefied petroleum gas,
and any other substance, material, or group
or class of material, in a particular amount
and form that the Secretary determines by
regulation poses a significant risk of creating a transportation security incident while
being transported in maritime commerce.

(B) ESPECIALLY HAZARDOUS
FINED.—In this subsection, the

(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2069; amended Pub. L. 108–458, title
IV, § 4072(a), Dec. 17, 2004, 118 Stat. 3730; Pub. L.
109–347, title I, §§ 101–103, 113(c), Oct. 13, 2006, 120
Stat. 1887, 1888, 1896; Pub. L. 111–83, title V,
§ 561(b), Oct. 28, 2009, 123 Stat. 2182; Pub. L.
111–281, title VIII, §§ 812(c), 826, Oct. 15, 2010, 124
Stat. 2997, 3004.)
AMENDMENTS
2010—Subsec. (b)(2)(E) to (H). Pub. L. 111–281, § 826,
added subpar. (E) and redesignated former subpars. (E)
to (G) as (F) to (H), respectively.
Subsec. (e). Pub. L. 111–281, § 812(c), added subsec.(e).
2009—Subsec. (d). Pub. L. 111–83 amended subsec. (d)
generally. Prior to amendment, text read as follows:
‘‘Notwithstanding any other provision of law, information developed under this chapter is not required to be
disclosed to the public, including—
‘‘(1) facility security plans, vessel security plans,
and port vulnerability assessments; and
‘‘(2) other information related to security plans,
procedures, or programs for vessels or facilities authorized under this chapter.’’
2006—Subsec. (b)(2)(F), (G). Pub. L. 109–347, § 101,
added subpar. (F) and redesignated former subpar. (F)
as (G).
Subsec. (c)(3)(C)(ii). Pub. L. 109–347, § 102(1)(A), substituted ‘‘facility, including access by persons engaged
in the surface transportation of intermodal containers
in or out of a port facility’’ for ‘‘facility’’.
Subsec. (c)(3)(F), (G). Pub. L. 109–347, § 113(c), added
subpar. (F) and redesignated former subpar. (F) as (G).
Former subpar. (G) redesignated (H).
Subsec. (c)(3)(H). Pub. L. 109–347, § 113(c)(1), redesignated subpar. (G) as (H). Former subpar. (H) redesignated (I).
Pub. L. 109–347, § 102(1)(B)–(D), added subpar. (H).
Subsec. (c)(3)(I). Pub. L. 109–347, § 113(c)(1), redesignated subpar. (H) as (I).
Subsec. (c)(4)(D). Pub. L. 109–347, § 103, amended subpar. (D) generally. Prior to amendment, subpar. (D)
read as follows: ‘‘review each plan periodically thereafter.’’
Subsec. (c)(8). Pub. L. 109–347, § 102(2), added par. (8).
2004—Subsec. (a)(1). Pub. L. 108–458 substituted ‘‘Not
later than April 1, 2005, the Secretary’’ for ‘‘The Secretary’’.
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu-

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§ 70105

TITLE 46—SHIPPING

rity, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
SEAMEN’S SHORESIDE ACCESS
Pub. L. 111–281, title VIII, § 811, Oct. 15, 2010, 124 Stat.
2995, provided that: ‘‘Each facility security plan approved under section 70103(c) of title 46, United States
Code, shall provide a system for seamen assigned to a
vessel at that facility, pilots, and representatives of
seamen’s welfare and labor organizations to board and
depart the vessel through the facility in a timely manner at no cost to the individual.’’
RISK ASSESSMENT TOOL
Pub. L. 109–347, title I, § 111, Oct. 13, 2006, 120 Stat.
1894, provided that: ‘‘In updating Area Maritime Security Plans required under section 70103(b)(2)(F) [now
section 70103(b)(2)(G)] of title 46, United States Code,
and in applying for grants under section 70107 of such
title, the Secretary of the Department in which the
Coast Guard is operating shall make available, and
Area Maritime Security Committees may use a risk assessment tool that uses standardized risk criteria, such
as the Maritime Security Risk Assessment Tool used
by the Coast Guard.’’
REVISION OF PORT SECURITY PLANNING GUIDE
Pub. L. 107–295, title I, § 113, Nov. 25, 2002, 116 Stat.
2093, provided that: ‘‘The Secretary of Transportation,
acting through the Maritime Administration and after
consultation with the National Maritime Security Advisory Committee and the Coast Guard, shall publish a
revised version of the document entitled ‘Port Security: A National Planning Guide’, incorporating the requirements prescribed under chapter 701 of title 46,
United States Code, as amended by this Act, within 3
years after the date of enactment of this Act [Nov. 25,
2002], and make that revised document available on the
Internet.’’

§ 70104. Transportation
sponse

security

incident

re-

(a) FACILITY AND VESSEL RESPONSE PLANS.—
The Secretary shall—
(1) establish security incident response plans
for vessels and facilities that may be involved
in a transportation security incident; and
(2) make those plans available to the Administrator of the Federal Emergency Management Agency for inclusion in the Administrator’s response plan for United States ports and
waterways.
(b) CONTENTS.—Response plans developed
under subsection (a) shall provide a comprehensive response to an emergency, including notifying and coordinating with local, State, and Federal authorities, including the Administrator of
the Federal Emergency Management Agency, securing the facility or vessel, and evacuating facility and vessel personnel.
(c) INCLUSION IN SECURITY PLAN.—A response
plan required under this subsection for a vessel
or facility may be included in the security plan
prepared under section 70103(c).
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2072; amended Pub. L. 109–295, title
VI, § 612(c), Oct. 4, 2006, 120 Stat. 1410.)
CHANGE OF NAME
‘‘Administrator of the Federal Emergency Management Agency’’ and ‘‘Administrator’s’’ substituted for
‘‘Director of the Federal Emergency Management
Agency’’ and ‘‘Director’s’’, respectively, on authority

of section 612(c) of Pub. L. 109–295, set out as a note
under section 313 of Title 6, Domestic Security. Any
reference to the Administrator of the Federal Emergency Management Agency in title VI of Pub. L. 109–295
or an amendment by title VI to be considered to refer
and apply to the Director of the Federal Emergency
Management Agency until Mar. 31, 2007, see section
612(f)(2) of Pub. L. 109–295, set out as a note under section 313 of Title 6.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
DEADLINE
Pub. L. 107–295, title I, § 102(c), Nov. 25, 2002, 116 Stat.
2084, provided that: ‘‘The Secretary shall establish the
plans required under section 70104(a)(1) of title 46,
United States Code, as enacted by this Act, before April
1, 2003.’’

§ 70105. Transportation security cards
(a) PROHIBITION.—(1) The Secretary shall prescribe regulations to prevent an individual from
entering an area of a vessel or facility that is
designated as a secure area by the Secretary for
purposes of a security plan for the vessel or facility that is approved by the Secretary under
section 70103 of this title unless the individual—
(A) holds a transportation security card issued under this section and is authorized to be
in the area in accordance with the plan; or
(B) is accompanied by another individual
who holds a transportation security card issued under this section and is authorized to be
in the area in accordance with the plan.
(2) A person shall not admit an individual into
such a secure area unless the entry of the individual into the area is in compliance with paragraph (1).
(b) ISSUANCE OF CARDS.—(1) The Secretary
shall issue a biometric transportation security
card to an individual specified in paragraph (2),
unless the Secretary determines under subsection (c) that the individual poses a security
risk warranting denial of the card.
(2) This subsection applies to—
(A) an individual allowed unescorted access
to a secure area designated in a vessel or facility security plan approved under section 70103
of this title;
(B) an individual issued a license, certificate
of registry, or merchant mariners document
under part E of subtitle II of this title allowed
unescorted access to a secure area designated
in a vessel security plan approved under section 70103 of this title;
(C) a vessel pilot;
(D) an individual engaged on a towing vessel
that pushes, pulls, or hauls alongside a tank

§ 70105

TITLE 46—SHIPPING

vessel allowed unescorted access to a secure
area designated in a vessel security plan approved under section 70103 of this title;
(E) an individual with access to security sensitive information as determined by the Secretary;
(F) other individuals engaged in port security activities as determined by the Secretary;
and
(G) other individuals as determined appropriate by the Secretary including individuals
employed at a port not otherwise covered by
this subsection.
(3) The Secretary may extend for up to one
year the expiration of a biometric transportation security card required by this section to
align the expiration with the expiration of a license, certificate of registry, or merchant mariner document required under chapter 71 or 73.
(c) DETERMINATION OF TERRORISM SECURITY
RISK.—
(1) DISQUALIFICATIONS.—
(A) PERMANENT DISQUALIFYING CRIMINAL
OFFENSES.—Except as provided under paragraph (2), an individual is permanently disqualified from being issued a biometric
transportation security card under subsection (b) if the individual has been convicted, or found not guilty by reason of insanity, in a civilian or military jurisdiction
of any of the following felonies:
(i) Espionage or conspiracy to commit
espionage.
(ii) Sedition or conspiracy to commit sedition.
(iii) Treason or conspiracy to commit
treason.
(iv) A Federal crime of terrorism (as defined in section 2332b(g) of title 18), a
crime under a comparable State law, or
conspiracy to commit such crime.
(v) A crime involving a transportation
security incident.
(vi) Improper transportation of a hazardous material in violation of section 5104(b)
of title 49, or a comparable State law.
(vii) Unlawful possession, use, sale, distribution, manufacture, purchase, receipt,
transfer, shipment, transportation, delivery, import, export, or storage of, or dealing in, an explosive or explosive device. In
this clause, an explosive or explosive device includes—
(I) an explosive (as defined in sections
232(5) and 844(j) of title 18);
(II) explosive materials (as defined in
subsections (c) through (f) of section 841
of title 18); and
(III) a destructive device (as defined in
921(a)(4) of title 18 or section 5845(f) of
the Internal Revenue Code of 1986).
(viii) Murder.
(ix) Making any threat, or maliciously
conveying false information knowing the
same to be false, concerning the deliverance, placement, or detonation of an explosive or other lethal device in or against
a place of public use, a State or other government facility, a public transportation
system, or an infrastructure facility.

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(x) A violation of chapter 96 of title 18,
popularly known as the Racketeer Influenced and Corrupt Organizations Act, or a
comparable State law, if one of the predicate acts found by a jury or admitted by
the defendant consists of one of the crimes
listed in this subparagraph.
(xi) Attempt to commit any of the
crimes listed in clauses (i) through (iv).
(xii) Conspiracy or attempt to commit
any of the crimes described in clauses (v)
through (x).
(B) INTERIM DISQUALIFYING CRIMINAL OFFENSES.—Except as provided under paragraph (2), an individual is disqualified from
being issued a biometric transportation security card under subsection (b) if the individual has been convicted, or found not
guilty by reason of insanity, during the 7year period ending on the date on which the
individual applies for such card, or was released from incarceration during the 5-year
period ending on the date on which the individual applies for such card, of any of the
following felonies:
(i) Unlawful possession, use, sale, manufacture, purchase, distribution, receipt,
transfer, shipment, transportation, delivery, import, export, or storage of, or dealing in, a firearm or other weapon. In this
clause, a firearm or other weapon includes—
(I) firearms (as defined in section
921(a)(3) of title 18 or section 5845(a) of
the Internal Revenue Code of 1986); and
(II) items contained on the U.S. Munitions Import List under section 447.21 of
title 27, Code of Federal Regulations.
(ii) Extortion.
(iii) Dishonesty, fraud, or misrepresentation, including identity fraud and money
laundering if the money laundering is related to a crime described in this subparagraph or subparagraph (A). In this clause,
welfare fraud and passing bad checks do
not constitute dishonesty, fraud, or misrepresentation.
(iv) Bribery.
(v) Smuggling.
(vi) Immigration violations.
(vii) Distribution of, possession with intent to distribute, or importation of a controlled substance.
(viii) Arson.
(ix) Kidnaping or hostage taking.
(x) Rape or aggravated sexual abuse.
(xi) Assault with intent to kill.
(xii) Robbery.
(xiii) Conspiracy or attempt to commit
any of the crimes listed in this subparagraph.
(xiv) Fraudulent entry into a seaport in
violation of section 1036 of title 18, or a
comparable State law.
(xv) A violation of the chapter 96 of title
18, popularly known as the Racketeer Influenced and Corrupt Organizations Act 1
or a comparable State law, other than any
1 So

in original. Probably should be followed by a comma.

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TITLE 46—SHIPPING

of the violations listed in subparagraph
(A)(x).
(C) UNDER WANT,
MENT.—An applicant

WARRANT, OR INDICTwho is wanted, or under
indictment, in any civilian or military jurisdiction for a felony listed in paragraph
(1)(A), is disqualified from being issued a biometric transportation security card under
subsection (b) until the want or warrant is
released or the indictment is dismissed.
(D) OTHER POTENTIAL DISQUALIFICATIONS.—
Except as provided under subparagraphs (A)
through (C), an individual may not be denied
a transportation security card under subsection (b) unless the Secretary determines
that individual—
(i) has been convicted within the preceding 7-year period of a felony or found not
guilty by reason of insanity of a felony—
(I) that the Secretary believes could
cause the individual to be a terrorism security risk to the United States; or
(II) for causing a severe transportation
security incident;

(ii) has been released from incarceration
within the preceding 5-year period for
committing a felony described in clause
(i);
(iii) may be denied admission to the
United States or removed from the United
States under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); or
(iv) otherwise poses a terrorism security
risk to the United States.
(E) MODIFICATION OF LISTED OFFENSES.—
The Secretary may, by rulemaking, add to
or modify the list of disqualifying crimes described in paragraph (1)(B).
(2) The Secretary shall prescribe regulations
that establish a waiver process for issuing a
transportation security card to an individual
found to be otherwise ineligible for such a card
under subparagraph (A), (B), or (D) 2 paragraph
(1). In deciding to issue a card to such an individual, the Secretary shall—
(A) give consideration to the circumstances of any disqualifying act or offense,
restitution made by the individual, Federal
and State mitigation remedies, and other
factors from which it may be concluded that
the individual does not pose a terrorism risk
warranting denial of the card; and
(B) issue a waiver to an individual without
regard to whether that individual would
otherwise be disqualified if the individual’s
employer establishes alternate security arrangements acceptable to the Secretary.
(3) DENIAL OF WAIVER REVIEW.—
(A) IN GENERAL.—The Secretary shall establish a review process before an administrative law judge for individuals denied a
waiver under paragraph (2).
(B) SCOPE OF REVIEW.—In conducting a review under the process established pursuant
to subparagraph (A), the administrative law
judge shall be governed by the standards of
section 706 of title 5. The substantial evi2 So

in original. Probably should be followed by ‘‘of’’.

§ 70105

dence standard in section 706(2)(E) of title 5
shall apply whether or not there has been an
agency hearing. The judge shall review all
facts on the record of the agency.
(C) CLASSIFIED EVIDENCE.—The Secretary,
in consultation with the Director of National Intelligence, shall issue regulations to
establish procedures by which the Secretary,
as part of a review conducted under this
paragraph, may provide to the individual adversely affected by the determination an unclassified summary of classified evidence
upon which the denial of a waiver by the
Secretary was based.
(D) REVIEW OF CLASSIFIED EVIDENCE BY ADMINISTRATIVE LAW JUDGE.—
(i) REVIEW.—As part of a review conducted under this section, if the decision
of the Secretary was based on classified information (as defined in section 1(a) of the
Classified Information Procedures Act (18
U.S.C. App.)), such information may be
submitted by the Secretary to the reviewing administrative law judge, pursuant to
appropriate security procedures, and shall
be reviewed by the administrative law
judge ex parte and in camera.
(ii) SECURITY CLEARANCES.—Pursuant to
existing procedures and requirements, the
Secretary, in coordination (as necessary)
with the heads of other affected departments or agencies, shall ensure that administrative law judges reviewing negative
waiver decisions of the Secretary under
this paragraph possess security clearances
appropriate for such review.
(iii) UNCLASSIFIED SUMMARIES OF CLASSIFIED EVIDENCE.—As part of a review conducted under this paragraph and upon the
request of the individual adversely affected by the decision of the Secretary not
to grant a waiver, the Secretary shall provide to the individual and reviewing administrative law judge, consistent with
the procedures established under clause (i),
an unclassified summary of any classified
information upon which the decision of the
Secretary was based.
(E) NEW EVIDENCE.—The Secretary shall establish a process under which an individual
may submit a new request for a waiver, notwithstanding confirmation by the administrative law judge of the Secretary’s initial
denial of the waiver, if the request is supported by substantial evidence that was not
available to the Secretary at the time the
initial waiver request was denied.
(4) The Secretary shall establish an appeals
process under this section for individuals
found to be ineligible for a transportation security card that includes notice and an opportunity for a hearing.
(5) Upon application, the Secretary may
issue a transportation security card to an individual if the Secretary has previously determined, under section 5103a of title 49, that the
individual does not pose a security risk.
(d) BACKGROUND RECORDS CHECK.—(1) On request of the Secretary, the Attorney General
shall—

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TITLE 46—SHIPPING

(A) conduct a background records check regarding the individual; and
(B) upon completing the background records
check, notify the Secretary of the completion
and results of the background records check.
(2) A background records check regarding an
individual under this subsection shall consist of
the following:
(A) A check of the relevant criminal history
databases.
(B) In the case of an alien, a check of the relevant databases to determine the status of the
alien under the immigration laws of the
United States.
(C) As appropriate, a check of the relevant
international databases or other appropriate
means.
(D) Review of any other national securityrelated information or database identified by
the Attorney General for purposes of such a
background records check.
(e) RESTRICTIONS ON USE AND MAINTENANCE OF
INFORMATION.—(1) Information obtained by the
Attorney General or the Secretary under this
section may not be made available to the public,
including the individual’s employer.
(2) Any information constituting grounds for
denial of a transportation security card under
this section shall be maintained confidentially
by the Secretary and may be used only for making determinations under this section. The Secretary may share any such information with
other Federal law enforcement agencies. An individual’s employer may only be informed of
whether or not the individual has been issued
the card under this section.
(f) DEFINITION.—In this section, the term
‘‘alien’’ has the meaning given the term in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3)).
(g) APPLICATIONS FOR MERCHANT MARINERS’
DOCUMENTS.—The Assistant Secretary of Homeland Security for the Transportation Security
Administration and the Commandant of the
Coast Guard shall concurrently process an application from an individual for merchant mariner’s documents under chapter 73 of title 46,
United States Code, and an application from
that individual for a transportation security
card under this section.
(h) FEES.—The Secretary shall ensure that the
fees charged each individual applying for a
transportation security card under this section
who has passed a background check under section 5103a(d) of title 49, United States Code, and
who has a current hazardous materials endorsement in accordance with section 1572 of title 49,
Code of Federal Regulations, and each individual with a current merchant mariners’ document who has passed a criminal background
check under section 7302(d)—
(1) are for costs associated with the issuance,
production, and management of the transportation security card, as determined by the
Secretary; and
(2) do not include costs associated with performing a background check for that individual, except for any incremental costs in the
event that the scope of such background
checks diverge.

Page 428

(i) IMPLEMENTATION SCHEDULE.—In implementing the transportation security card program
under this section, the Secretary shall—
(1) establish a priority for each United
States port based on risk, including vulnerabilities assessed under section 70102; and
(2) implement the program, based upon such
risk and other factors as determined by the
Secretary, at all facilities regulated under this
chapter at—
(A) the 10 United States ports that the
Secretary designates top priority not later
than July 1, 2007;
(B) the 40 United States ports that are
next in order of priority to the ports described in subparagraph (A) not later than
January 1, 2008; and
(C) all other United States ports not later
than January 1, 2009.
(j) TRANSPORTATION SECURITY CARD PROCESSDEADLINE.—Not later than January 1, 2009,
the Secretary shall process and issue or deny
each application for a transportation security
card under this section for individuals with current and valid merchant mariners’ documents
on the date of the enactment of the SAFE Port
Act.
(k) DEPLOYMENT OF TRANSPORTATION SECURITY
CARD READERS.—
(1) PILOT PROGRAM.—
(A) IN GENERAL.—The Secretary shall conduct a pilot program to test the business
processes, technology, and operational impacts required to deploy transportation security card readers at secure areas of the
marine transportation system.
(B) GEOGRAPHIC LOCATIONS.—The pilot program shall take place at not fewer than 5
distinct geographic locations, to include vessels and facilities in a variety of environmental settings.
(C) COMMENCEMENT.—The pilot program
shall commence not later than 180 days after
the date of the enactment of the SAFE Port
Act.
ING

(2) CORRELATION WITH TRANSPORTATION SECURITY CARDS.—
(A) IN GENERAL.—The pilot program described in paragraph (1) shall be conducted
concurrently with the issuance of the transportation security cards described in subsection (b) to ensure card and card reader
interoperability.
(B) FEE.—An individual charged a fee for a
transportation security card issued under
this section may not be charged an additional fee if the Secretary determines different transportation security cards are
needed based on the results of the pilot program described in paragraph (1) or for other
reasons related to the technology requirements for the transportation security card
program.
(3) REGULATIONS.—Not later than 2 years
after the commencement of the pilot program
under paragraph (1)(C), the Secretary, after a
notice and comment period that includes at
least 1 public hearing, shall promulgate final
regulations that require the deployment of
transportation security card readers that are

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consistent with the findings of the pilot program and build upon the regulations prescribed under subsection (a).
(4) REPORT.—Not later than 120 days before
the promulgation of regulations under paragraph (3), the Secretary shall submit a comprehensive report to the appropriate congressional committees (as defined in section 2(1) of
SAFE Port Act) that includes—
(A) the findings of the pilot program with
respect to technical and operational impacts
of implementing a transportation security
card reader system;
(B) any actions that may be necessary to
ensure that all vessels and facilities to
which this section applies are able to comply
with such regulations; and
(C) an analysis of the viability of equipment under the extreme weather conditions
of the marine environment.
(l) PROGRESS REPORTS.—Not later than 6
months after the date of the enactment of the
SAFE Port Act, and every 6 months thereafter
until the requirements under this section are
fully implemented, the Secretary shall submit a
report on progress being made in implementing
such requirements to the appropriate congressional committees (as defined in section 2(1) of
the SAFE Port Act).
(m) LIMITATION.—The Secretary may not require the placement of an electronic reader for
transportation security cards on a vessel unless—
(1) the vessel has more individuals on the
crew that are required to have a transportation security card than the number the Secretary determines, by regulation issued under
subsection (k)(3), warrants such a reader; or
(2) the Secretary determines that the vessel
is at risk of a severe transportation security
incident.
(n) The Secretary may use a secondary authentication system to verify the identification
of individuals using transportation security
cards when the individual’s fingerprints are not
able to be taken or read.
(o) ESCORTING.—The Secretary shall coordinate with owners and operators subject to this
section to allow any individual who has a pending application for a transportation security
card under this section or is waiting for reissuance of such card, including any individual
whose card has been lost or stolen, and who
needs to perform work in a secure or restricted
area to have access to such area for that purpose
through escorting of such individual in accordance with subsection (a)(1)(B) by another individual who holds a transportation security card.
Nothing in this subsection shall be construed as
requiring or compelling an owner or operator to
provide escorted access.
(p) PROCESSING TIME.—The Secretary shall review an initial transportation security card application and respond to the applicant, as appropriate, including the mailing of an Initial Determination of Threat Assessment letter, within 30
days after receipt of the initial application. The
Secretary shall, to the greatest extent practicable, review appeal and waiver requests submitted by a transportation security card appli-

cant, and send a written decision or request for
additional information required for the appeal
or waiver determination, within 30 days after receipt of the applicant’s appeal or waiver written
request. For an applicant that is required to
submit additional information for an appeal or
waiver determination, the Secretary shall send
a written decision, to the greatest extent practicable, within 30 days after receipt of all requested information.
(q) RECEIPT AND ACTIVATION OF TRANSPORTATION SECURITY CARD.—
(1) IN GENERAL.—Not later than one year
after the date of publication of final regulations required by subsection (k)(3) of this section the Secretary shall develop a plan to permit the receipt and activation of transportation security cards at any vessel or facility
described in subsection (a) of this section that
desires to implement this capability. This plan
shall comply, to the extent possible, with all
appropriate requirements of Federal standards
for personal identity verification and credential.
(2) LIMITATION.—The Secretary may not require any such vessel or facility to provide onsite activation capability.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2073; amended Pub. L. 109–241, title
III, § 309, July 11, 2006, 120 Stat. 528; Pub. L.
109–347, title I, § 104(a), (b), Oct. 13, 2006, 120 Stat.
1888, 1890; Pub. L. 110–53, title XIII, § 1309(a), Aug.
3, 2007, 121 Stat. 397; Pub. L. 111–281, title VIII,
§§ 809, 814, 818(a), 819, 823, title IX, § 903(c)(2), Oct.
15, 2010, 124 Stat. 2995, 2999–3001, 3003, 3011; Pub.
L. 111–330, § 1(13), Dec. 22, 2010, 124 Stat. 3570.)
REFERENCES IN TEXT
Section 5845 of the Internal Revenue Code of 1986, referred to in subsec. (c)(1)(A)(vii)(III), (B)(i)(I), is classified to section 5845 of Title 26, Internal Revenue Code.
The Immigration and Nationality Act, referred to in
subsec. (c)(1)(D)(iii), is act June 27, 1952, ch. 477, 66 Stat.
163, which is classified principally to chapter 12 (§ 1101
et seq.) of Title 8, Aliens and Nationality. For complete
classification of this Act to the Code, see Short Title
note set out under section 1101 of Title 8 and Tables.
The Classified Information Procedures Act, referred
to in subsec. (c)(3)(D)(i), is Pub. L. 96–456, Oct. 15, 1980,
94 Stat. 2025, which is set out in the Appendix to Title
18, Crimes and Criminal Procedure.
The date of the enactment of the SAFE Port Act, referred to in subsecs. (j), (k)(1)(C), (l), is the date of enactment of Pub. L. 109–347, which was approved Oct. 13,
2006.
Section 2(1) of the SAFE Port Act, referred to in subsecs. (k)(4), (l), is classified to section 901(1) of Title 6,
Domestic Security.
AMENDMENTS
2010—Subsec. (b)(2)(B). Pub. L. 111–281, § 809(1), inserted ‘‘allowed unescorted access to a secure area designated in a vessel security plan approved under section 70103 of this title’’ after ‘‘subtitle II of this title’’.
Subsec. (b)(2)(D). Pub. L. 111–281, § 809(2), inserted ‘‘allowed unescorted access to a secure area designated in
a vessel security plan approved under section 70103 of
this title’’ after ‘‘tank vessel’’.
Subsec. (b)(3). Pub. L. 111–281, § 819, as amended by
Pub. L. 111–330, added par. (3).
Subsec. (c)(3)(C). Pub. L. 111–281, § 903(c)(2), substituted ‘‘Director of National Intelligence’’ for ‘‘National Intelligence Director’’.
Subsec. (n). Pub. L. 111–281, § 814, added subsec. (n).

§ 70106

TITLE 46—SHIPPING

Subsecs. (o), (p). Pub. L. 111–281, § 818(a), added subsecs. (o) and (p).
Subsec. (q). Pub. L. 111–281, § 823, added subsec. (q).
2007—Subsec. (b)(1). Pub. L. 110–53, § 1309(a)(1), substituted ‘‘determines under subsection (c) that the individual poses a security risk’’ for ‘‘decides that the individual poses a security risk under subsection (c)’’.
Subsec. (c)(1). Pub. L. 110–53, § 1309(a)(2), inserted
heading and amended text of par. (1) generally, substituting provisions relating to disqualifications, consisting of subpars. (A) to (E), for former provisions relating to when individuals may be denied transportation security cards, consisting of subpars. (A) to (D).
2006—Subsec. (b)(2)(G). Pub. L. 109–347, § 104(b)(1),
added subpar. (G).
Subsec. (c)(2). Pub. L. 109–347, § 104(b)(2), inserted
‘‘subparagraph (A), (B), or (D)’’ before ‘‘paragraph (1)’’.
Subsec. (c)(3) to (5). Pub. L. 109–241 added par. (3) and
redesignated former pars. (3) and (4) as (4) and (5), respectively.
Subsecs. (g) to (m). Pub. L. 109–347, § 104(a), added subsecs. (g) to (m).
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–330, § 1, Dec. 22, 2010, 124 Stat. 3569, provided that the amendment made by section 1(13) is effective with the enactment of Pub. L. 111–281.
DEADLINE FOR SECTION 70105 REGULATIONS
Pub. L. 109–347, title I, § 104(c), Oct. 13, 2006, 120 Stat.
1891, provided that: ‘‘Not later than January 1, 2007, the
Secretary [of Homeland Security] shall promulgate
final regulations implementing the requirements for issuing transportation security cards under section 70105
of title 46, United States Code. The regulations shall include a background check process to enable newly
hired workers to begin working unless the Secretary
makes an initial determination that the worker poses
a security risk. Such process shall include a check
against the consolidated and integrated terrorist watch
list maintained by the Federal Government.’’
PILOT PROGRAM FOR FINGERPRINTING OF MARITIME
WORKERS
Pub. L. 111–281, title VIII, § 808, Oct. 15, 2010, 124 Stat.
2994, provided that:
‘‘(a) IN GENERAL.—Within 180 days after the date of
enactment of this Act [Oct. 15, 2010], the Secretary of
Homeland Security shall establish procedures providing for an individual who is required to be fingerprinted
for purposes of obtaining a transportation security card
under section 70105 of title 46, United States Code, the
ability to be fingerprinted at any of not less than 20 facilities operated by or under contract with an agency of
the Department of Homeland Security that fingerprints
the public for the Department. These facilities shall be
in addition to facilities established under section 70105
of title 46, United States Code.
‘‘(b) EXPIRATION.—The requirement made by subsection (a) expires 1 year after the date the Secretary
establishes the facilities required under that subsection.’’
ASSESSMENT OF TRANSPORTATION SECURITY CARD
ENROLLMENT SITES
Pub. L. 111–281, title VIII, § 815, Oct. 15, 2010, 124 Stat.
2999, provided that:

(a) IN GENERAL.—Not later than 180 days after
the date of the enactment of this Act [Oct. 15,
2010], the Secretary of the department in which
the Coast Guard is operating shall prepare an assessment of the enrollment sites for transportation security cards issued under section 70105
of title 46, United States Code, including—
(1) the feasibility of keeping those enrollment sites open after the date of enactment of
this Act; and
(2) the quality of customer service, including
the periods of time individuals are kept on

Page 430

hold on the telephone, whether appointments
are kept, and processing times for applications.
(b) TIMELINES AND BENCHMARKS.—The Secretary shall develop timelines and benchmarks
for implementing the findings of the assessment
as the Secretary deems necessary.
RECEIPT OF CARDS
Pub. L. 111–281, title VIII, § 818(b), Oct. 15, 2010, 124
Stat. 3000, provided that:
‘‘(1) REPORT BY COMPTROLLER GENERAL.—Within 180
days after the date of enactment of this Act [Oct. 15,
2010], the Comptroller General of the United States
shall submit to the Committee on Homeland Security
of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate
a report assessing the costs, technical feasibility, and
security measures associated with implementing procedures to deliver a transportation security card to an
approved applicant’s place of residence in a secure
manner or to allow an approved applicant to receive
the card at an enrollment center of the individual’s
choosing.
‘‘(2) PROCESS FOR ALTERNATIVE MEANS OF RECEIPT.—If
the Comptroller General finds in the final report under
paragraph (1) that it is feasible for a transportation security card to be sent to an approved applicant’s place
of residence in a secure manner, the Secretary shall,
within 1 year after the date of issuance of the final report by the Comptroller General, implement a secure
process to permit an individual approved for a transportation security card to receive the card at the applicant’s place of residence or at the enrollment center of
the individual’s choosing. The individual shall be responsible for any additional cost associated with the
secure delivery of a transportation security card.’’
PROHIBITION OF ISSUANCE OF TRANSPORTATION SECURITY CARDS TO PERSONS CONVICTED OF CERTAIN
FELONIES
Pub. L. 109–347, title I, § 106, Oct. 13, 2006, 120 Stat.
1891, provided that: ‘‘The Secretary [of Homeland Security], in issuing a final rule pursuant to section 70105 of
title 46, United States Code, shall provide for the disqualification of individuals who have been found guilty
or have been found not guilty by reason of insanity of
a felony, involving—
‘‘(1) treason, or conspiracy to commit treason;
‘‘(2) espionage, or conspiracy to commit espionage;
‘‘(3) sedition, or conspiracy to commit sedition; or
‘‘(4) a crime listed in chapter 113B of title 18, United
States Code, a comparable State law, or conspiracy
to commit such crime.’’

§ 70106. Deployable, specialized forces
(a) ESTABLISHMENT.—
(1) IN GENERAL.—To enhance the domestic
maritime security capability of the United
States, the Secretary shall establish deployable specialized forces of varying capabilities
as are needed to safeguard the public and protect vessels, harbors, ports, facilities, and
cargo in waters subject to the jurisdiction of
the United States from destruction, loss or injury from crime, or sabotage due to terrorist
activity, and to respond to such activity in accordance with the transportation security
plans developed under section 70103.
(2) ENHANCED TEAMS.—Such specialized
forces shall include no less than two enhanced
teams to serve as deployable forces capable of
combating terrorism, engaging in interdiction,
law enforcement, and advanced tactical maritime security operations to address known or

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TITLE 46—SHIPPING

potentially armed security threats (including
non-compliant actors at sea), and participating in homeland security, homeland defense,
and counterterrorism exercises in the maritime environment.
(b) MISSION.—The combined force of the specialized forces established under subsection (a)
shall be trained, equipped, and capable of being
deployed to—
(1) deter, protect against, and rapidly respond to threats of maritime terrorism;
(2) conduct maritime operations to protect
against and disrupt illegal use, access to, or
proliferation of weapons of mass destruction;
(3) enforce moving or fixed safety or security
zones established pursuant to law;
(4) conduct high speed intercepts;
(5) board, search, and seize any article or
thing on or at, respectively, a vessel or facility found to present a risk to the vessel or facility, or to a port;
(6) rapidly deploy to supplement United
States armed forces domestically or overseas;
(7) respond to criminal or terrorist acts so as
to minimize, insofar as possible, the disruption caused by such acts;
(8) assist with facility vulnerability assessments required under this chapter; and
(9) carry out any other missions of the Coast
Guard as are assigned to it by the Secretary.
(c) MINIMIZATION OF RESPONSE TIMES.—The enhanced teams established under subsection (a)(2)
shall, to the extent practicable, be stationed in
such a way so as to minimize the response time
to maritime terrorist threats and potential or
actual transportation security incidents.
(d) COORDINATION WITH OTHER AGENCIES.—To
the maximum extent feasible, the combined
force of the specialized forces established under
subsection (a) shall coordinate their activities
with other Federal, State, and local law enforcement and emergency response agencies.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2074; amended Pub. L. 109–241, title
III, § 305, July 11, 2006, 120 Stat. 528; Pub. L.
111–281, title VIII, § 804(a), Oct. 15, 2010, 124 Stat.
2990.)
AMENDMENTS
2010—Pub. L. 111–281 amended section generally. Prior
to amendment, section related to maritime safety and
security teams.
2006—Subsec. (b)(8). Pub. L. 109–241 substituted ‘‘any
other missions of the Coast Guard’’ for ‘‘other security
missions’’.
COAST GUARD DETECTION CANINE TEAM PROGRAM
EXPANSION
Pub. L. 111–281, title VIII, § 805, Oct. 15, 2010, 124 Stat.
2991, provided that:
‘‘(a) DEFINITIONS.—For purposes of this section:
‘‘(1) CANINE DETECTION TEAM.—The term ‘detection
canine team’ means a canine and a canine handler
that are trained to detect narcotics or explosives, or
other threats as defined by the Secretary.
‘‘(2) SECRETARY.—The term ‘Secretary’ means the
Secretary of Homeland Security.
‘‘(b) DETECTION CANINE TEAMS.—
‘‘(1) INCREASED CAPACITY.—Not later than 1 year
after the date of enactment of this Act [Oct. 15, 2010],
and subject to the availability of appropriations, the
Secretary shall—

§ 70107

‘‘(A) begin to increase the number of detection canine teams certified by the Coast Guard for the purposes of maritime-related security by no fewer than
10 canine teams annually through fiscal year 2012;
and
‘‘(B) encourage owners and operators of port facilities, passenger cruise liners, oceangoing cargo
vessels, and other vessels identified by the Secretary to strengthen security through the use of
highly trained detection canine teams.
‘‘(2) CANINE PROCUREMENT.—The Secretary, acting
through the Commandant of the Coast Guard, shall
procure detection canine teams as efficiently as possible, including, to the greatest extent possible,
through increased domestic breeding, while meeting
the performance needs and criteria established by the
Commandant.
‘‘(c) DEPLOYMENT.—The Secretary shall prioritize deployment of the additional canine teams to ports based
on risk, consistent with the Security and Accountability For Every Port Act of 2006 (Public Law 109–347) [see
Tables for classification].’’

§ 70107. Grants
(a) IN GENERAL.—The Secretary shall establish
a grant program for the allocation of funds
based on risk to implement Area Maritime
Transportation Security Plans and facility security plans among port authorities, facility operators, and State and local government agencies
required to provide port security services and to
train law enforcement personnel under section
70132 of this title. Before awarding a grant under
the program, the Secretary shall provide for review and comment by the appropriate Federal
Maritime Security Coordinators and the Maritime Administrator. In administering the grant
program, the Secretary shall take into account
national economic, energy, and strategic defense
concerns based upon the most current risk assessments available.
(b) ELIGIBLE COSTS.—The following costs of
funding the correction of Coast Guard identified
vulnerabilities in port security and ensuring
compliance with Area Maritime Transportation
Security Plans and facility security plans are eligible to be funded:
(1) Salary, benefits, overtime compensation,
retirement contributions, and other costs of
additional Coast Guard mandated security
personnel.
(2) The cost of acquisition, operation, and
maintenance of security equipment or facilities to be used for security monitoring and recording, security gates and fencing, marine
barriers for designated security zones, security-related lighting systems, remote surveillance, concealed video systems, security vessels, and other security-related infrastructure
or equipment that contributes to the overall
security of passengers, cargo, or crewmembers. Grants awarded under this section
may not be used to construct buildings or
other physical facilities, except those which
are constructed under terms and conditions
consistent with the requirements under section 611(j)(8) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42
U.S.C. 5121(j)(8) 1 ), including those facilities in
support of this paragraph, and specifically approved by the Secretary. Costs eligible for
1 So

in original. Probably should be ‘‘5196(j)(8)’’.

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TITLE 46—SHIPPING

funding under this paragraph may not exceed
the greater of—
(A) $1,000,000 per project; or
(B) such greater amount as may be approved by the Secretary, which may not exceed 10 percent of the total amount of the
grant.
(3) The cost of screening equipment, including equipment that detects weapons of mass
destruction and conventional explosives, and
of testing and evaluating such equipment, to
certify secure systems of transportation.
(4) The cost of conducting vulnerability assessments to evaluate and make recommendations with respect to security.
(5) The cost of conducting exercises or training for prevention and detection of, preparedness for, response to, or recovery from terrorist attacks.
(6) The cost of establishing or enhancing
mechanisms for sharing terrorism threat information and ensuring that the mechanisms
are interoperable with Federal, State, and
local agencies.
(7) The cost of equipment (including software) required to receive, transmit, handle,
and store classified information.
(8) The cost of training law enforcement personnel—
(A) to enforce a security zone under section 70132 of this title; or
(B) assist in the enforcement of a security
zone.
(c) MATCHING REQUIREMENTS.—
(1) 75-PERCENT FEDERAL FUNDING.—Except as
provided in paragraph (2), Federal funds for
any eligible project under this section shall
not exceed 75 percent of the total cost of such
project.
(2) EXCEPTIONS.—
(A) SMALL PROJECTS.—There are no matching requirements for grants under subsection
(a) for projects costing not more than
$25,000.
(B) HIGHER LEVEL OF SUPPORT REQUIRED.—
If the Secretary determines that a proposed
project merits support and cannot be undertaken without a higher rate of Federal support, then the Secretary may approve grants
under this section with a matching requirement other than that specified in paragraph
(1).
(C) TRAINING.—There are no matching requirements for grants under subsection (a)
to train law enforcement agency personnel
in the enforcement of security zones under
section 70132 of this title or in assisting in
the enforcement of such security zones.
(d) COORDINATION AND
MENTS.—The
Secretary

COOPERATION AGREEshall ensure that
projects paid for, or the costs of which are reimbursed, under this section within any area or
port are coordinated with other projects, and
may require cooperative agreements among
users of the port and port facilities with respect
to projects funded under this section.
(e) MULTIPLE-YEAR PROJECTS.—
(1) LETTERS OF INTENT.—The Secretary may
execute letters of intent to commit funding to
such authorities, operators, and agencies.

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(2) LIMITATION.—Not more than 20 percent of
the grant funds awarded under this subsection
in any fiscal year may be awarded for projects
that span multiple years.
(f) CONSISTENCY WITH PLANS.—The Secretary
shall ensure that each grant awarded under subsection (e)—
(1) is used to supplement and support, in a
consistent and coordinated manner, the applicable Area Maritime Transportation Security
Plan; and
(2) is coordinated with any applicable State
or Urban Area Homeland Security Plan.
(g) APPLICATIONS.—Any entity subject to an
Area Maritime Transportation Security Plan
may submit an application for a grant under
this section, at such time, in such form, and
containing such information and assurances as
the Secretary may require.
(h) REPORTS.—Not later than 180 days after the
date of the enactment of the SAFE Port Act, the
Secretary, acting through the Commandant of
the Coast Guard, shall submit a report to Congress, in a secure format, describing the methodology used to allocate port security grant
funds on the basis of risk.
(i) ADMINISTRATION.—
(1) IN GENERAL.—The Secretary shall require
eligible port authorities, facility operators,
and State and local agencies required to provide security services, to submit an application, at such time, in such form, and containing such information and assurances as the
Secretary may require, and shall include appropriate application, review, and delivery
mechanisms.
(2) MINIMUM STANDARDS FOR PAYMENT OR REIMBURSEMENT.—Each application for payment
or reimbursement of eligible costs shall include, at a minimum, the following:
(A) A copy of the applicable Area Maritime
Transportation Security Plan or facility security plan.
(B) A comprehensive description of the
need for the project, and a statement of the
project’s relationship to the applicable Area
Maritime Transportation Security Plan or
facility security plan.
(C) A determination by the Captain of the
Port that the security project addresses or
corrects Coast Guard identified vulnerabilities in security and ensures compliance with
Area Maritime Transportation Security
Plans and facility security plans.
(3) PROCEDURAL SAFEGUARDS.—The Secretary
shall by regulation establish appropriate accounting, reporting, and review procedures to
ensure that amounts paid or reimbursed under
this section are used for the purposes for
which they were made available, all expenditures are properly accounted for, and amounts
not used for such purposes and amounts not
obligated or expended are recovered.
(4) PROJECT APPROVAL REQUIRED.—The Secretary may approve an application for the
payment or reimbursement of costs under this
section only if the Secretary is satisfied that—
(A) the project is consistent with Coast
Guard vulnerability assessments and ensures
compliance with Area Maritime Transpor-

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TITLE 46—SHIPPING

tation Security Plans and facility security
plans;
(B) enough money is available to pay the
project costs that will not be reimbursed by
the United States Government under this
section;
(C) the project will be completed without
unreasonable delay; and
(D) the recipient has authority to carry
out the project as proposed.
(j) AUDITS AND EXAMINATIONS.—A recipient of
amounts made available under this section shall
keep such records as the Secretary may require,
and make them available for review and audit
by the Secretary, the Comptroller General of
the United States, or the Inspector General of
the department in which the Coast Guard is operating.
(k) REPORTS ON SECURITY FUNDING AND COMPLIANCE.—
(1) INITIAL REPORT.—Within 6 months after
the date of enactment of this Act, the Secretary shall transmit an unclassified report to
the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee on Transportation
and Infrastructure, that—
(A) includes a funding proposal and rationale to fund the correction of Coast Guard
identified vulnerabilities in port security
and to help ensure compliance with Area
Maritime Transportation Security Plans and
facility security plans for fiscal years 2003
through 2008; and
(B) includes projected funding proposals
for fiscal years 2003 through 2008 for the following security programs:
(i) The Sea Marshall program.
(ii) The Automated Identification System and a system of polling vessels on
entry into United States waters.
(iii) The maritime intelligence requirements in this Act.
(iv) The issuance of transportation security cards required by section 70105.
(v) The program of certifying secure systems of transportation.
(2) OTHER EXPENDITURES.—The Secretary
shall, as part of the report required by paragraph (1) report, in coordination with the
Commissioner of Customs, on projected expenditures of screening and detection equipment and on cargo security programs over fiscal years 2003 through 2008.
(3) ANNUAL REPORTS.—Annually, beginning 1
year after transmittal of the report required
by paragraph (1) until October 1, 2009, the Secretary shall transmit an unclassified annual
report to the Senate Committee on Commerce,
Science, and Transportation and the House of
Representatives Committee on Transportation
and Infrastructure, on progress in achieving
compliance with the correction of Coast Guard
identified vulnerabilities in port security and
compliance with Area Maritime Transportation Security Plans and facility security
plans that—
(A) identifies any modifications necessary
in funding to ensure the correction of Coast
Guard identified vulnerabilities and ensure

§ 70107

compliance with Area Maritime Transportation Security Plans and facility security
plans;
(B) includes an assessment of progress in
implementing the grant program established
by subsection (a);
(C) includes any recommendations the Secretary may make to improve these programs; and
(D) with respect to a port selected by the
Secretary, describes progress and enhancements of applicable Area Maritime Transportation Security Plans and facility security plans and how the Maritime Transportation Security Act of 2002 has improved security at that port.
(l) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated $400,000,000 for
each of the fiscal years 2007 through 2013 to
carry out this section.
(m) INVESTIGATIONS.—
(1) IN GENERAL.—The Secretary shall conduct investigations, fund pilot programs, and
award grants, to examine or develop—
(A) methods or programs to increase the
ability to target for inspection vessels,
cargo, crewmembers, or passengers that will
arrive or have arrived at any port or place in
the United States;
(B) equipment to detect accurately explosives, chemical, or biological agents that
could be used in a transportation security
incident against the United States;
(C) equipment to detect accurately nuclear
or radiological materials, including scintillation-based detection equipment capable
of signalling the presence of nuclear or radiological materials;
(D) improved tags and seals designed for
use on shipping containers to track the
transportation of the merchandise in such
containers, including sensors that are able
to track a container throughout its entire
supply chain, detect hazardous and radioactive materials within that container, and
transmit that information to the appropriate law enforcement authorities;
(E) tools, including the use of satellite
tracking systems, to increase the awareness
of maritime areas and to identify potential
transportation security incidents that could
have an impact on facilities, vessels, and infrastructure on or adjacent to navigable
waterways, including underwater access;
(F) tools to mitigate the consequences of a
transportation security incident on, adjacent to, or under navigable waters of the
United States, including sensor equipment,
and other tools to help coordinate effective
response to a transportation security incident;
(G) applications to apply existing technologies from other areas or industries to increase overall port security;
(H) improved container design, including
blast-resistant containers; and
(I) methods to improve security and sustainability of port facilities in the event of
a maritime transportation security incident,
including specialized inspection facilities.
(2) IMPLEMENTATION OF TECHNOLOGY.—

§ 70107

TITLE 46—SHIPPING

(A) IN GENERAL.—In conjunction with ongoing efforts to improve security at United
States ports, the Secretary may conduct
pilot projects at United States ports to test
the effectiveness and applicability of new
port security projects, including—
(i) testing of new detection and screening technologies;
(ii) projects to protect United States
ports and infrastructure on or adjacent to
the navigable waters of the United States,
including underwater access; and
(iii) tools for responding to a transportation security incident at United States
ports and infrastructure on or adjacent to
the navigable waters of the United States,
including underwater access.
(B) AUTHORIZATION OF APPROPRIATIONS.—
There is authorized to be appropriated to the
Secretary $35,000,000 for each of fiscal years
2005 through 2009 to carry out this subsection.
(3) NATIONAL PORT SECURITY CENTERS.—
(A) IN GENERAL.—The Secretary may make
grants or enter into cooperative agreements
with eligible nonprofit institutions of higher
learning to conduct investigations in collaboration with ports and the maritime
transportation industry focused on enhancing security of the Nation’s ports in accordance with this subsection through National
Port Security Centers.
(B) APPLICATIONS.—To be eligible to receive a grant under this paragraph, a nonprofit institution of higher learning, or a
consortium of such institutions, shall submit an application to the Secretary in such
form and containing such information as the
Secretary may require.
(C) COMPETITIVE SELECTION PROCESS.—The
Secretary shall select grant recipients under
this paragraph through a competitive process on the basis of the following criteria:
(i) Whether the applicant can demonstrate that personnel, laboratory, and
organizational resources will be available
to the applicant to carry out the investigations authorized in this paragraph.
(ii) The applicant’s capability to provide
leadership in making national and regional contributions to the solution of immediate and long-range port and maritime
transportation security and risk mitigation problems.
(iii) Whether the applicant can demonstrate that is 2 has an established, nationally recognized program in disciplines
that contribute directly to maritime
transportation safety and education.
(iv) Whether the applicant’s investigations will involve major United States
ports on the East Coast, the Gulf Coast,
and the West Coast, and Federal agencies
and other entities with expertise in port
and maritime transportation.
(v) Whether the applicant has a strategic
plan for carrying out the proposed investigations under the grant.
2 So

in original. Probably should be ‘‘the applicant’’.

Page 434

(4) ADMINISTRATIVE PROVISIONS.—
(A) NO DUPLICATION OF EFFORT.—Before
making any grant, the Secretary shall coordinate with other Federal agencies to ensure
the grant will not duplicate work already
being conducted with Federal funding.
(B) ACCOUNTING.—The Secretary shall by
regulation establish accounting, reporting,
and review procedures to ensure that funds
made available under paragraph (1) are used
for the purpose for which they were made
available, that all expenditures are properly
accounted for, and that amounts not used
for such purposes and amounts not expended
are recovered.
(C) RECORDKEEPING.—Recipients of grants
shall keep all records related to expenditures and obligations of funds provided
under paragraph (1) and make them available upon request to the Inspector General
of the department in which the Coast Guard
is operating and the Secretary for audit and
examination.
(5) ANNUAL REVIEW AND REPORT.—The Inspector General of the department in which the
Coast Guard is operating shall annually review the programs established under this subsection to ensure that the expenditures and
obligations of funds are consistent with the
purposes for which they are provided, and report the findings to the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation
and Infrastructure of the House of Representatives.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2075; amended Pub. L. 108–293, title
VIII, §§ 804(a), (b), 808(a), Aug. 9, 2004, 118 Stat.
1081, 1083; Pub. L. 109–347, title I, § 112, Oct. 13,
2006, 120 Stat. 1894; Pub. L. 111–281, title VIII,
§ 828(b), Oct. 15, 2010, 124 Stat. 3007.)
REFERENCES IN TEXT
The date of the enactment of the SAFE Port Act, referred to in subsec. (h), is the date of enactment of Pub.
L. 109–347, which was approved Oct. 13, 2006.
The date of enactment of this Act, referred to in subsec. (k)(1), probably means the date of enactment of
Pub. L. 107–295, which enacted this section and was approved Nov. 25, 2002.
This Act, referred to in subsec. (k)(1)(B)(iii), probably
means the Maritime Transportation Security Act of
2002, which enacted this subtitle, see note below.
The Maritime Transportation Security Act of 2002,
referred to in subsec. (k)(3)(D), is Pub. L. 107–295, Nov.
25, 2002, 116 Stat. 2064. For complete classification of
this Act to the Code, see Tables.
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281, § 828(b)(1), substituted ‘‘services and to train law enforcement personnel under section 70132 of this title.’’ for ‘‘services.’’ in
first sentence.
Subsec. (b)(8). Pub. L. 111–281, § 828(b)(2), added par.(8).
Subsec. (c)(2)(C). Pub. L. 111–281, § 828(b)(3), added subpar. (C).
Subsec. (l). Pub. L. 111–281, § 828(b)(4), substituted
‘‘2013’’ for ‘‘2011’’.
2006—Subsec. (a). Pub. L. 109–347, § 112(a), (e), substituted ‘‘for the allocation of funds based on risk’’ for
‘‘for making a fair and equitable allocation of funds’’
and ‘‘national economic, energy, and strategic defense
concerns based upon the most current risk assessments

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TITLE 46—SHIPPING

available’’ for ‘‘national economic and strategic defense concerns’’.
Subsec. (b)(2). Pub. L. 109–347, § 112(b)(1), inserted at
end ‘‘Grants awarded under this section may not be
used to construct buildings or other physical facilities,
except those which are constructed under terms and
conditions consistent with the requirements under section 611(j)(8) of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121(j)(8)), including those facilities in support of this paragraph,
and specifically approved by the Secretary. Costs eligible for funding under this paragraph may not exceed
the greater of—’’ and subpars. (A) and (B).
Subsec. (b)(5) to (7). Pub. L. 109–347, § 112(b)(2), added
pars. (5) to (7).
Subsecs. (e) to (i). Pub. L. 109–347, § 112(c)(1), added
subsecs. (e) to (h). Former subsecs. (e) to (i) redesignated (i) to (m), respectively.
Subsec. (i)(1). Pub. L. 109–347, § 112(c)(2), substituted
‘‘Secretary shall require’’ for ‘‘program shall require’’.
Subsecs. (j), (k). Pub. L. 109–347, § 112(c)(1), redesignated subsecs. (f) and (g) as (j) and (k), respectively.
Subsec. (l). Pub. L. 109–347, § 112(d), amended subsec.
(l) generally. Prior to amendment, subsec. (l) read as
follows: ‘‘There are authorized to be appropriated to
the Secretary for each of fiscal years 2003 through 2008
such sums as are necessary to carry out subsections (a)
through (g).’’
Pub. L. 109–347, § 112(c)(1), redesignated subsec. (h) as
(l).
Subsec. (m). Pub. L. 109–347, § 112(c)(1), redesignated
subsec. (i) as (m).
2004—Subsec. (a). Pub. L. 108–293, § 804(a), reenacted
heading without change and amended text of subsec. (a)
generally. Prior to amendment, text read as follows:
‘‘The Secretary of Transportation, acting through the
Maritime Administrator, shall establish a grant program for making a fair and equitable allocation among
port authorities, facility operators, and State and local
agencies required to provide security services of funds
to implement Area Maritime Transportation Security
Plans and facility security plans. The program shall
take into account national economic and strategic defense considerations.’’
Subsec. (c)(2)(B). Pub. L. 108–293, § 804(b)(1), substituted ‘‘Secretary determines’’ for ‘‘Secretary of
Transportation determines’’.
Subsecs. (d), (e). Pub. L. 108–293, § 804(b)(1), substituted ‘‘Secretary’’ for ‘‘Secretary of Transportation’’
wherever appearing.
Subsec. (f). Pub. L. 108–293, § 804(b), substituted ‘‘Secretary’’ for ‘‘Secretary of Transportation’’ in two
places and ‘‘department in which the Coast Guard is operating’’ for ‘‘Department of Transportation’’.
Subsecs. (g), (h). Pub. L. 108–293, § 804(b)(1), substituted ‘‘Secretary’’ for ‘‘Secretary of Transportation’’
wherever appearing.
Subsec. (i). Pub. L. 108–293, § 808(a), added subsec. (i)
and struck out former subsec. (i) which related to research and development grants for port security.
EFFECTIVE DATE OF 2004 AMENDMENT
Pub. L. 108–293, title VIII, § 804(c), Aug. 9, 2004, 118
Stat. 1081, provided that: ‘‘Subsections (a) and (b)
[amending this section]—
‘‘(1) shall take effect October 1, 2004; and
‘‘(2) shall not affect any grant made before that
date.’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 70107A

For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the
Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.

§ 70107A. Interagency operational centers for
port security
(a) IN GENERAL.—The Secretary shall establish
interagency operational centers for port security at all high-priority ports not later than 3
years after the date of the enactment of the
SAFE Port Act.
(b) CHARACTERISTICS.—The interagency operational centers established under this section
shall—
(1)(A) include—
(i) information management systems, and
(ii) sensor management systems; and
(B) where practicable, provide for the physical co-location of the Coast Guard and, as the
Secretary determines appropriate, representatives of the United States Customs and Border
Protection, the United States Immigration
and Customs Enforcement, the Transportation
Security Administration, the Department of
Justice, the Department of Defense, and other
Federal agencies, State and local law enforcement or port security personnel, members of
the Area Maritime Security Committee, and
other public and private sector stakeholders
adversely affected by a transportation security incident or transportation disruption;
(2) utilize, as appropriate, the compositional
and operational characteristics of existing
centers;
(3) be organized to fit the security needs, requirements, and resources of the individual
port area at which each is operating; and
(4) be incorporated in the implementation
and administration of—
(A) maritime transportation security
plans developed under section 70103;
(B) maritime intelligence activities under
section 70113 and information sharing activities consistent with section 1016 of the National Security Intelligence Reform Act of
2004 (6 U.S.C. 485) and the Homeland Security Information Sharing Act (6 U.S.C. 481 et
seq.);
(C) short- and long-range vessel tracking
under sections 70114 and 70115;
(D) protocols under section 201(b)(10) of the
SAFE Port Act;
(E) the transportation security incident
response plans required by section 70104; and
(F) other activities, as determined by the
Secretary.
(c) SECURITY CLEARANCES.—The Secretary
shall sponsor and expedite individuals participating in interagency operational centers in
gaining or maintaining their security clearances. Through the Captain of the Port, the Secretary may identify key individuals who should
participate. The port or other entities may appeal to the Captain of the Port for sponsorship.

§ 70108

TITLE 46—SHIPPING

Page 436

(d) SECURITY INCIDENTS.—During a transportation security incident on or adjacent to waters
subject to the jurisdiction of the United States,
the Coast Guard Captain of the Port designated
by the Commandant of the Coast Guard in a
maritime security command center described in
subsection (a) shall act as the incident commander, unless otherwise directed by the President.
(e) DEPLOYMENT OF INTEROPERABLE COMMUNICATIONS EQUIPMENT AT INTERAGENCY OPERATIONAL CENTERS.—The Secretary, subject to
the availability of appropriations, shall ensure
that interoperable communications technology
is deployed at all interagency operational centers established under subsection (a) and that
such technology and equipment has been tested
in live operational environments before deployment.
(f) RULE OF CONSTRUCTION.—Nothing in this
section shall be construed to affect the normal
command and control procedures for operational
entities in the Department, unless so directed
by the Secretary.
(g) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated $60,000,000 for
each of the fiscal years 2007 through 2012 to
carry out this section.

Subsecs. (e) to (g). Pub. L. 111–281, § 824, added subsec.
(e) and redesignated former subsecs. (e) and (f) as (f)
and (g), respectively.

(Added Pub. L. 109–347, title I, § 108(a), Oct. 13,
2006, 120 Stat. 1892; amended Pub. L. 111–281, title
VIII, §§ 803, 824, Oct. 15, 2010, 124 Stat. 2990, 3003.)

(b) PROCEDURES.—In conducting an assessment
under subsection (a), the Secretary shall assess
the effectiveness of—
(1) screening of containerized and other
cargo and baggage;
(2) security measures to restrict access to
cargo, vessels, and dockside property to authorized personnel only;
(3) additional security on board vessels;
(4) licensing or certification of compliance
with appropriate security standards;
(5) the security management program of the
foreign port; and
(6) other appropriate measures to deter terrorism against the United States.

REFERENCES IN TEXT
The date of the enactment of the SAFE Port Act, referred to in subsec. (a), is the date of enactment of Pub.
L. 109–347, which was approved Oct. 13, 2006.
The Homeland Security Information Sharing Act, referred to in subsec. (b)(4)(B), is subtitle I of title VIII
of Pub. L. 107–296, Nov. 25, 2002, 116 Stat. 2252, which is
classified principally to part I (§ 481 et seq.) of subchapter VIII of chapter 1 of Title 6, Domestic Security.
For complete classification of this Act to the Code, see
section 481 of Title 6 and Tables.
Section 201(b)(10) of the SAFE Port Act, referred to in
subsec. (b)(4)(D), is classified to section 941(b)(10) of
Title 6, Domestic Security.
AMENDMENTS
2010—Subsec. (b)(1). Pub. L. 111–281, § 803(3), added par.
(1). Former par. (1) redesignated (2).
Subsec. (b)(2). Pub. L. 111–281, § 803(2), (4), redesignated former par. (1) as (2), substituted ‘‘existing centers;’’ for ‘‘existing centers, including—’’ and struck
out subpars. (A) and (B) which read as follows:
‘‘(A) the pilot project interagency operational centers
for port security in Miami, Florida; Norfolk/Hampton
Roads, Virginia; Charleston, South Carolina; and San
Diego, California; and
‘‘(B) the virtual operation center of the Port of New
York and New Jersey;’’.
Former par. (2) redesignated (3).
Subsec. (b)(3). Pub. L. 111–281, § 803(1), (2), (5), redesignated former par. (2) as (3), inserted ‘‘and’’ at end, and
struck out former par. (3) which read as follows: ‘‘in addition to the Coast Guard, provide, as the Secretary determines appropriate, for participation by representatives of the United States Customs and Border Protection, the United States Immigration and Customs Enforcement, the Transportation Security Administration, the Department of Justice, the Department of Defense, and other Federal agencies, State and local law
enforcement or port security personnel, members of the
Area Maritime Security Committee, and other public
and private sector stakeholders adversely affected by a
transportation security incident or transportation disruption; and’’.

REPORT REQUIREMENT
Pub. L. 109–347, title I, § 108(b), Oct. 13, 2006, 120 Stat.
1893, provided that: ‘‘Nothing in this section [enacting
this section] or the amendments made by this section
relieves the Commandant of the Coast Guard from complying with the requirements of section 807 of the Coast
Guard and Maritime Transportation Act of 2004 (Public
Law 108–293; 118 Stat. 1082). The Commandant shall utilize the information developed in making the report required by that section in carrying out the requirements
of this section.’’

§ 70108. Foreign port assessment
(a) IN GENERAL.—The Secretary shall assess
the effectiveness of the antiterrorism measures
maintained at—
(1) a foreign port—
(A) served by vessels documented under
chapter 121 of this title; or
(B) from which foreign vessels depart on a
voyage to the United States; and
(2) any other foreign port the Secretary believes poses a security risk to international
maritime commerce.

(c) CONSULTATION.—In carrying out this section, the Secretary shall consult with—
(1) the Secretary of Defense and the Secretary of State—
(A) on the terrorist threat that exists in
each country involved; and
(B) to identify foreign ports that pose a
high risk of introducing terrorism to international maritime commerce;
(2) appropriate authorities of foreign governments; and
(3) operators of vessels.
(d) PERIODIC REASSESSMENT.—The Secretary,
acting through the Commandant of the Coast
Guard, shall reassess the effectiveness of antiterrorism measures maintained at ports as described under subsection (a) and of procedures
described in subsection (b) not less than once
every 3 years.
(e) LIMITATION ON STATUTORY CONSTRUCTION.—
The absence of an inspection of a foreign port
shall not bar the Secretary from making a finding that a port in a foreign country does not
maintain effective antiterrorism measures.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2079; amended Pub. L. 109–347, title

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TITLE 46—SHIPPING

II, § 234, Oct. 13, 2006, 120 Stat. 1918; Pub. L.
111–281, title VIII, § 806(a)(1), (c)(2)(B), Oct. 15,
2010, 124 Stat. 2992, 2993.)
AMENDMENTS
2010—Subsec. (c)(2) to (4). Pub. L. 111–281,
§ 806(c)(2)(B), redesignated pars. (3) and (4) as (2) and (3),
respectively, and struck out former par. (2) which read
as follows: ‘‘the Secretary of the Treasury;’’.
Subsec. (e). Pub. L. 111–281, § 806(a)(1), added subsec.
(e).
2006—Subsec. (d). Pub. L. 109–347 added subsec. (d).

§ 70109. Notifying foreign authorities
(a) IN GENERAL.—Unless the Secretary finds
that a port in a foreign country maintains effective antiterrorism measures, the Secretary shall
notify the appropriate authorities of the government of the foreign country of the finding and
recommend the steps necessary to improve the
antiterrorism measures in use at the port.
(b) TRAINING PROGRAM.—The Secretary, in cooperation with the Secretary of State, shall operate a port security training program for ports
in foreign countries that are found under section
70108 to lack effective antiterrorism measures.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2080; amended Pub. L. 111–281, title
VIII, § 806(a)(2), Oct. 15, 2010, 124 Stat. 2992.)
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281 substituted ‘‘Unless
the Secretary finds that a port in a foreign country
maintains effective antiterrorism measures,’’ for ‘‘If
the Secretary, after conducting an assessment under
section 70108, finds that a port in a foreign country does
not maintain effective antiterrorism measures,’’.

§ 70110. Actions and assistance for foreign ports
or facilities and United States territories
(a) IN GENERAL.—Unless the Secretary finds
that a foreign port or facility maintains effective antiterrorism measures, the Secretary—
(1) may prescribe conditions of entry into
the United States for any vessel arriving from
that port or facility, or any vessel carrying
cargo or passengers originating from or transshipped through that port or facility;
(2) may deny entry into the United States to
any vessel that does not meet such conditions;
and
(3) shall provide public notice for passengers
of the ineffective antiterrorism measures.
(b) EFFECTIVE DATE FOR SANCTIONS.—Any action taken by the Secretary under subsection (a)
for a particular port or facility shall take effect—
(1) 90 days after the government of the foreign country with jurisdiction over or control
of that port or facility is notified under section 70109 unless the Secretary finds that the
government has brought the antiterrorism
measures at the port or facility up to the security level the Secretary used in making an assessment under section 70108 before the end of
that 90-day period; or
(2) immediately upon the finding of the Secretary under subsection (a) if the Secretary
finds, after consulting with the Secretary of
State, that a condition exists that threatens
the safety or security of passengers, vessels, or
crew traveling to or from the port or facility.

§ 70110

(c) STATE DEPARTMENT TO BE NOTIFIED.—The
Secretary immediately shall notify the Secretary of State of a finding that a port or facility does not maintain effective antiterrorism
measures.
(d) ACTION CANCELED.—An action required
under this section is no longer required if the
Secretary decides that effective antiterrorism
measures are maintained at the port or facility.
(e) ASSISTANCE FOR FOREIGN PORTS, FACILITIES, AND UNITED STATES TERRITORIES.—
(1) IN GENERAL.—The Secretary, in consultation with the Secretary of Transportation, the
Secretary of State, and the Secretary of Energy, shall identify assistance programs that
could facilitate implementation of port or facility security antiterrorism measures in foreign countries and territories of the United
States. The Secretary shall establish a strategic plan to utilize those assistance programs
to assist ports and facilities that are found by
the Secretary under subsection (a) not to
maintain effective antiterrorism measures in
the implementation of port or facility security
antiterrorism measures.
(2) CARIBBEAN BASIN.—The Secretary, in coordination with the Secretary of State and in
consultation with the Organization of American States and the Commandant of the Coast
Guard, shall place particular emphasis on utilizing programs to facilitate the implementation of port or facility security antiterrorism
measures at the ports located in the Caribbean
Basin, as such ports pose unique security and
safety threats to the United States due to—
(A) the strategic location of such ports between South America and the United States;
(B) the relative openness of such ports; and
(C) the significant number of shipments of
narcotics to the United States that are
moved through such ports.
(f) COAST GUARD ASSISTANCE PROGRAM.—
(1) IN GENERAL.—The Secretary may lend,
lease, donate, or otherwise provide equipment,
and provide technical training and support, to
the owner or operator of a foreign port or facility—
(A) to assist in bringing the port or facility into compliance with applicable International Ship and Port Facility Code standards; and
(B) to assist the port or facility in correcting deficiencies identified in periodic port
assessments and reassessments required
under section 70108 of this title.
(2) CONDITIONS.—The Secretary—
(A) may provide such assistance based
upon an assessment of the risks to the security of the United States and the inability of
the owner or operator of the port or facility
to bring the port or facility into compliance
with those standards and to maintain compliance with, or exceed, such standards;
(B) may not provide such assistance unless
the port or facility has been subjected to a
comprehensive port security assessment by
the Coast Guard; and
(C) may only lend, lease, or otherwise provide equipment that the Secretary has first
determined is not required by the Coast
Guard for the performance of its missions.

§ 70111

TITLE 46—SHIPPING

(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2080; amended Pub. L. 109–347, title
II, § 233(b), Oct. 13, 2006, 120 Stat. 1917; Pub. L.
111–281, title VIII, § 806(a)(3)–(c)(2)(A), Oct. 15,
2010, 124 Stat. 2992, 2993; Pub. L. 111–330, § 1(12),
Dec. 22, 2010, 124 Stat. 3570.)
AMENDMENTS
2010—Pub. L. 111–281, § 806(c)(2)(A)(i), as amended by
Pub. L. 111–330, inserted ‘‘or facilities’’ after ‘‘ports’’ in
section catchline.
Pub. L. 111–281, § 806(c)(2)(A)(ii), inserted ‘‘or facility’’
after ‘‘port’’ wherever appearing except in subsec. (f),
which was added by Pub. L. 111–281, § 806(b), to reflect
the probable intent of Congress.
Subsec. (a). Pub. L. 111–281, § 806(a)(3), substituted
‘‘Unless the Secretary finds that a foreign port maintains effective antiterrorism measures,’’ for ‘‘If the
Secretary finds that a foreign port does not maintain
effective antiterrorism measures,’’.
Subsec. (e). Pub. L. 111–281, § 806(c)(2)(A)(iii), substituted ‘‘Ports, Facilities,’’ for ‘‘Ports’’ in heading.
Subsec. (e)(1). Pub. L. 111–281, § 806(c)(1), substituted
‘‘The Secretary shall establish a strategic plan to utilize those assistance programs to assist ports and facilities that are found by the Secretary under subsection (a) not to maintain effective antiterrorism
measures in the implementation of port security antiterrorism measures.’’ for ‘‘The Secretary shall establish a program to utilize the programs that are capable
of implementing port security antiterrorism measures
at ports in foreign countries and territories of the
United States that the Secretary finds to lack effective
antiterrorism measures.’’
Subsec. (f). Pub. L. 111–281, § 806(b), added subsec. (f).
2006—Pub. L. 109–347, § 233(b)(1), substituted ‘‘Actions
and assistance for foreign ports and United States territories’’ for ‘‘Actions when foreign ports not maintaining effective antiterrorism measures’’ in section catchline.
Subsec. (e). Pub. L. 109–347, § 233(b)(2), added subsec.
(e).
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–330, § 1, Dec. 22, 2010, 124 Stat. 3569, provided that the amendment made by section 1(12) is effective with the enactment of Pub. L. 111–281.

§ 70111. Enhanced crewmember identification
(a) REQUIREMENT.—Not later than 1 year after
the date of enactment of the SAFE Port Act, the
Secretary, in consultation with the Attorney
General and the Secretary of State, shall require crewmembers on vessels calling at United
States ports to carry and present on demand any
identification that the Secretary decides is necessary.
(b) FORMS AND PROCESS.—Not later than 1 year
after the date of enactment of the SAFE Port
Act, the Secretary, in consultation with the Attorney General and the Secretary of State, shall
establish the proper forms and process that shall
be used for identification and verification of
crewmembers.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2080; amended Pub. L. 109–347, title
I, § 110, Oct. 13, 2006, 120 Stat. 1893.)
REFERENCES IN TEXT
The date of enactment of the SAFE Port Act, referred to in subsecs. (a) and (b), is the date of enactment of Pub. L. 109–347, which was approved Oct. 13,
2006.

Page 438
AMENDMENTS

2006—Subsecs. (a), (b). Pub. L. 109–347 substituted
‘‘Not later than 1 year after the date of enactment of
the SAFE Port Act, the’’ for ‘‘The’’.
INTERNATIONAL SEAFARER IDENTIFICATION
Pub. L. 107–295, title I, § 103, Nov. 25, 2002, 116 Stat.
2084, provided that:
‘‘(a) TREATY INITIATIVE.—The Secretary of the department in which the Coast Guard is operating is encouraged to negotiate an international agreement, or an
amendment to an international agreement, that provides for a uniform, comprehensive, international system of identification for seafarers that will enable the
United States and another country to establish authoritatively the identity of any seafarer aboard a vessel within the jurisdiction, including the territorial waters, of the United States or such other country.
‘‘(b) LEGISLATIVE ALTERNATIVE.—If the Secretary
fails to complete a negotiation process undertaken
under subsection (a) within 24 months after the date of
enactment of this Act [Nov. 25, 2002], the Secretary
shall transmit to the Committee on Commerce,
Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the
House of Representatives a draft of legislation that, if
enacted, would establish a uniform, comprehensive system of identification for seafarers.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]

§ 70112. Maritime Security Advisory Committees
(a) ESTABLISHMENT OF COMMITTEES.—(1) The
Secretary shall establish a National Maritime
Security Advisory Committee. The Committee—
(A) may advise, consult with, report to, and
make recommendations to the Secretary on
matters relating to national maritime security matters;
(B) may make available to the Congress recommendations that the Committee makes to
the Secretary; and
(C) shall meet at the call of—
(i) the Secretary, who shall call such a
meeting at least once during each calendar
year; or
(ii) a majority of the Committee.
(2)(A) The Secretary may—
(i) establish an Area Maritime Security Advisory Committee for any port area of the
United States; and
(ii) request such a committee to review the
proposed Area Maritime Transportation Security Plan developed under section 70103(b) and
make recommendations to the Secretary that
the Committee considers appropriate.
(B) A committee established under this paragraph for an area—
(i) may advise, consult with, report to, and
make recommendations to the Secretary on
matters relating to maritime security in that
area;
(ii) may make available to the Congress recommendations that the committee makes to
the Secretary; and
(iii) shall meet at the call of—

Page 439

§ 70113

TITLE 46—SHIPPING

(I) the Secretary, who shall call such a
meeting at least once during each calendar
year; or
(II) a majority of the committee.
(b) MEMBERSHIP.—(1) Each of the committees
established under subsection (a) shall consist of
not less than 7 members appointed by the Secretary, each of whom has at least 5 years practical experience in maritime security operations.
(2) The term of each member shall be for a period of not more than 5 years, specified by the
Secretary.
(3) Before appointing an individual to a position on such a committee, the Secretary shall
publish a notice in the Federal Register soliciting nominations for membership on the committee.
(4) The Secretary may require an individual to
have passed an appropriate security background
examination before appointment to the Committee.
(5)(A) The National Maritime Security Advisory Committee shall be composed of—
(i) at least 1 individual who represents the
interests of the port authorities;
(ii) at least 1 individual who represents the
interests of the facilities owners or operators;
(iii) at least 1 individual who represents the
interests of the terminal owners or operators;
(iv) at least 1 individual who represents the
interests of the vessel owners or operators;
(v) at least 1 individual who represents the
interests of the maritime labor organizations;
(vi) at least 1 individual who represents the
interests of the academic community;
(vii) at least 1 individual who represents the
interests of State or local governments; and
(viii) at least 1 individual who represents the
interests of the maritime industry.
(B) Each Area Maritime Security Advisory
Committee shall be composed of individuals who
represents the interests of the port industry,
terminal operators, port labor organizations,
and other users of the port areas.
(c) CHAIRPERSON AND VICE CHAIRPERSON.—(1)
Each committee established under subsection
(a) shall elect 1 of its members as the Chairman
and 1 of its members as the Vice Chairperson.
(2) The Vice Chairman shall act as Chairman
in the absence or incapacity of the Chairman, or
in the event of a vacancy in the office of the
Chairman.
(d) OBSERVERS.—(1) The Secretary shall, and
the head of any other interested Federal agency
may, designate a representative to participate
as an observer with the Committee.
(2) The Secretary’s designated representative
shall act as the executive secretary of the Committee and shall perform the duties set forth in
section 10(c) of the Federal Advisory Committee
Act (5 U.S.C. App.).
(e) CONSIDERATION OF VIEWS.—The Secretary
shall consider the information, advice, and recommendations of the Committee in formulating
policy regarding matters affecting maritime security.
(f) COMPENSATION AND EXPENSES.—(1) A member of a committee established under this section, when attending meetings of the committee

or when otherwise engaged in the business of the
committee, is entitled to receive—
(A) compensation at a rate fixed by the Secretary, not exceeding the daily equivalent of
the current rate of basic pay in effect for
GS–15 of the General Schedule under section
5332 of title 5 including travel time; and
(B) travel or transportation expenses under
section 5703 of title 5.
(2) A member of such a committee shall not be
considered to be an officer or employee of the
United States for any purpose based on their receipt of any payment under this subsection.
(g) FACA; TERMINATION.—(1) The Federal Advisory Committee Act (5 U.S.C. App.)—
(A) applies to the National Maritime Security Advisory Committee established under
this section, except that such committee terminates on September 30, 2020; and
(B) does not apply to Area Maritime Security Advisory Committees established under
this section.
(2) Not later than September 30, 2018, each
committee established under this section shall
submit to the Congress its recommendation regarding whether the committee should be renewed and continued beyond the termination
date.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2081; amended Pub. L. 108–293, title
VIII, § 806, Aug. 9, 2004, 118 Stat. 1082; Pub. L.
109–241, title IX, § 901(m), July 11, 2006, 120 Stat.
565; Pub. L. 111–281, title VIII, § 810, Oct. 15, 2010,
124 Stat. 2995.)
REFERENCES IN TEXT
The Federal Advisory Committee Act, referred to in
subsecs. (d)(2) and (g)(1), is Pub. L. 92–463, Oct. 6, 1972,
86 Stat. 770, as amended, which is set out in the Appendix to Title 5, Government Organization and Employees.
AMENDMENTS
2010—Subsec. (b)(5). Pub. L. 111–281, § 810(1), amended
par. (5) generally. Prior to amendment par. (5) read as
follows: ‘‘The membership of an Area Maritime Security Advisory Committee shall include representatives
of the port industry, terminal operators, port labor organizations, and other users of the port areas.’’
Subsec. (g)(1)(A). Pub. L. 111–281, § 810(2)(A), substituted ‘‘2020;’’ for ‘‘2008;’’.
Subsec. (g)(2). Pub. L. 111–281, § 810(2)(B), substituted
‘‘2018’’ for ‘‘2006’’.
2006—Subsec. (b)(5). Pub. L. 109–241 realigned margins.
2004—Subsec. (b)(5). Pub. L. 108–293 added par. (5).

§ 70113. Maritime intelligence
(a) IN GENERAL.—The Secretary shall implement a system to collect, integrate, and analyze
information concerning vessels operating on or
bound for waters subject to the jurisdiction of
the United States, including information related
to crew, passengers, cargo, and intermodal shipments. The system may include a vessel risk
profiling component that assigns incoming vessels a terrorism risk rating.
(b) CONSULTATION.—In developing the information system under subsection (a), the Secretary
shall consult with the Transportation Security
Oversight Board and other departments and
agencies, as appropriate.

§ 70114

TITLE 46—SHIPPING

(c) INFORMATION INTEGRATION.—To deter a
transportation security incident, the Secretary
may collect information from public and private
entities to the extent that the information is
not provided by other Federal departments and
agencies.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2082; amended Pub. L. 108–293, title
VIII, § 803(a), Aug. 9, 2004, 118 Stat. 1080.)
AMENDMENTS
2004—Subsec. (a). Pub. L. 108–293 inserted at end ‘‘The
system may include a vessel risk profiling component
that assigns incoming vessels a terrorism risk rating.’’

§ 70114. Automatic identification systems
(a) SYSTEM REQUIREMENTS.—(1) Subject to
paragraph (2), the following vessels, while operating on the navigable waters of the United
States, shall be equipped with and operate an
automatic identification system under regulations prescribed by the Secretary:
(A) A self-propelled commercial vessel of at
least 65 feet overall in length.
(B) A vessel carrying more than a number of
passengers for hire determined by the Secretary.
(C) A towing vessel of more than 26 feet
overall in length and 600 horsepower.
(D) Any other vessel for which the Secretary
decides that an automatic identification system is necessary for the safe navigation of the
vessel.
(2) The Secretary may—
(A) exempt a vessel from paragraph (1) if the
Secretary finds that an automatic identification system is not necessary for the safe navigation of the vessel on the waters on which
the vessel operates; and
(B) waive the application of paragraph (1)
with respect to operation of vessels on navigable waters of the United States specified by
the Secretary if the Secretary finds that automatic identification systems are not needed
for safe navigation on those waters.
(b) REGULATIONS.—The Secretary shall prescribe regulations implementing subsection (a),
including requirements for the operation and
maintenance of the automatic identification
systems required under subsection (a).
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2082.)
EFFECTIVE DATE
Pub. L. 107–295, title I, § 102(e), Nov. 25, 2002, 116 Stat.
2084, provided that:
‘‘(1) SCHEDULE.—Section 70114 of title 46, United
States Code, as enacted by this Act, shall apply as follows:
‘‘(A) On and after January 1, 2003, to any vessel
built after that date.
‘‘(B) On and after July 1, 2003, to any vessel built
before the date referred to in subparagraph (A) that
is—
‘‘(i) a passenger vessel required to carry a certificate under the International Convention for the
Safety of Life at Sea, 1974 (SOLAS) [see 33 U.S.C.
1602 and notes thereunder];
‘‘(ii) a tanker; or
‘‘(iii) a towing vessel engaged in moving a tank
vessel.

Page 440

‘‘(C) On and after December 31, 2004, to all other
vessels built before the date referred to in subparagraph (A).
‘‘(2) DEFINITION.—The terms in this subsection have
the same meaning as those terms have under section
2101 [now also 115] of title 46, United States Code.’’

§ 70115. Long-range vessel tracking system
Not later than April 1, 2007, the Secretary
shall, consistent with international treaties,
conventions, and agreements to which the
United States is a party, develop and implement
a long-range automated vessel tracking system
for all vessels in United States waters that are
equipped with the Global Maritime Distress and
Safety System or equivalent satellite technology. The system shall be designed to provide
the Secretary the capability of receiving information on vessel positions at interval positions
appropriate to deter transportation security incidents. The Secretary may use existing maritime organizations to collect and monitor tracking information under the system.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2083; amended Pub. L. 108–293, title
VIII, § 803(b), Aug. 9, 2004, 118 Stat. 1080; Pub. L.
109–347, title I, § 107(a), Oct. 13, 2006, 120 Stat.
1891.)
AMENDMENTS
2006—Pub. L. 109–347, in first sentence, substituted
‘‘Not later than April 1, 2007, the Secretary’’ for ‘‘The
Secretary’’.
2004—Pub. L. 108–293, in first sentence, substituted
‘‘shall, consistent with international treaties, conventions, and agreements to which the United States is a
party,’’ for ‘‘may’’.
REGULATIONS
Pub. L. 109–347, title I, § 107(b), Oct. 13, 2006, 120 Stat.
1891, provided that: ‘‘The Secretary [of Homeland Security] may issue regulations to establish a voluntary
long-range automated vessel tracking system for vessels described in section 70115 of title 46, United States
Code, during the period before regulations are issued
under such section.’’
LONG-RANGE VESSEL TRACKING SYSTEM
Pub. L. 109–241, title IV, § 404, July 11, 2006, 120 Stat.
535, provided that:
‘‘(a) PILOT PROJECT.—The Secretary of the department in which the Coast Guard is operating, acting
through the Commandant of the Coast Guard, shall
conduct a 3-year pilot program for long-range tracking
of up to 2,000 vessels using satellite systems with a nonprofit maritime organization that has a demonstrated
capability of operating a variety of satellite communications systems providing data to vessel tracking
software and hardware that provides long-range vessel
information to the Coast Guard to aid maritime security and response to maritime emergencies.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary $4,000,000
for each of fiscal years 2006, 2007, and 2008 to carry out
subsection (a).’’

§ 70116. Secure systems of transportation
(a) IN GENERAL.—The Secretary, in consultation with the Transportation Security Oversight
Board, shall establish a program to evaluate and
certify secure systems of international intermodal transportation.
(b) ELEMENTS OF PROGRAM.—The program
shall include—

Page 441

§ 70118

TITLE 46—SHIPPING

(1) establishing standards and procedures for
screening and evaluating cargo prior to loading in a foreign port for shipment to the
United States either directly or via a foreign
port;
(2) establishing standards and procedures for
securing cargo and monitoring that security
while in transit;
(3) developing performance standards to enhance the physical security of shipping containers, including standards for seals and
locks;
(4) establishing standards and procedures for
allowing the United States Government to ensure and validate compliance with this program; and
(5) any other measures the Secretary considers necessary to ensure the security and integrity of international intermodal transport
movements.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2083.)
REPORT ON SECURE SYSTEM OF TRANSPORTATION
PROGRAM
Pub. L. 107–295, title I, § 110(c), Nov. 25, 2002, 116 Stat.
2092, provided that:
‘‘Within 1 year after the secure system of transportation program is implemented under section 70116 of
title 46, United States Code, as amended by this Act,
the Secretary of the department in which the Coast
Guard is operating shall transmit a report to the Senate Committees on Commerce, Science, and Transportation and Finance and the House of Representatives
Committees on Transportation and Infrastructure and
Ways and Means that—
‘‘(1) evaluates the secure system of transportation
program and its components;
‘‘(2) states the Secretary’s view as to whether any
procedure, system, or technology evaluated as part of
the program offers a higher level of security than requiring imported goods to clear customs under existing procedures and for the requirements of the National Maritime Security Plan for reopening of
United States ports to commerce;
‘‘(3) states the Secretary’s view as to the integrity
of the procedures, technology, or systems evaluated
as part of the program;
‘‘(4) makes a recommendation with respect to
whether the program, or any procedure, system, or
technology should be incorporated in a nationwide
system for preclearance of imports of waterborne
goods and for the requirements of the National Maritime Security Plan for the reopening of United States
ports to Commerce;
‘‘(5) describes the impact of the program on staffing
levels at the department in which the Coast Guard is
operating, and the Customs Service; and
‘‘(6) states the Secretary’s views as to whether
there is a method by which the United States could
validate foreign ports so that cargo from those ports
is preapproved for entry into the United States and
for the purpose of the requirements of the National
Maritime Security Plan for the reopening of United
States ports to commerce.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]
[For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the

Department of the Treasury, including functions of the
Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and
557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section
542 of Title 6.]
PERFORMANCE STANDARDS
Pub. L. 107–295, title I, § 111, Nov. 25, 2002, 116 Stat.
2092, provided that: ‘‘Not later than January 1, 2004, the
Secretary of the department in which the Coast Guard
is operating, in consultation with the Transportation
Security Oversight Board, shall—
‘‘(1) develop and maintain an antiterrorism cargo
identification, tracking, and screening system for
containerized cargo shipped to and from the United
States either directly or via a foreign port; and
‘‘(2) develop performance standards to enhance the
physical security of shipping containers, including
standards for seals and locks.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]

[§ 70117. Repealed. Pub. L. 111–281, title II,
§ 208(b), Oct. 15, 2010, 124 Stat. 2912]
Section, added Pub. L. 108–293, title VIII, § 801(a), Aug.
9, 2004, 118 Stat. 1078, § 70118; renumbered § 70117, Pub. L.
109–241, title IX, § 901(l)(1), July 11, 2006, 120 Stat. 565;
Pub. L. 109–304, § 15(33)(A), Oct. 6, 2006, 120 Stat. 1705;
Pub. L. 110–181, div. C, title XXXV, § 3529(c)(1), Jan. 28,
2008, 122 Stat. 603, related to firearms, arrests, and seizure of property.
PRIOR PROVISIONS
A prior section 70117 was renumbered section 70120 of
this title.
Another prior section 70117 was renumbered section
70119 of this title.

§ 70118. Enforcement by State and local officers
(a) IN GENERAL.—Any State or local government law enforcement officer who has authority
to enforce State criminal laws may make an arrest for violation of a security zone regulation
prescribed under section 1 of title II of the Act
of June 15, 1917 (chapter 30; 50 U.S.C. 191) or security or safety zone regulation under section
7(b) of the Ports and Waterways Safety Act (33
U.S.C. 1226(b)) or a safety zone regulation prescribed under section 10(d) of the Deepwater
Port Act of 1974 (33 U.S.C. 1509(d)) by a Coast
Guard official authorized by law to prescribe
such regulations, if—
(1) such violation is a felony; and
(2) the officer has reasonable grounds to believe that the person to be arrested has committed or is committing such violation.
(b) OTHER POWERS NOT AFFECTED.—The provisions of this section are in addition to any power
conferred by law to such officers. This section
shall not be construed as a limitation of any
power conferred by law to such officers, or any
other officer of the United States or any State.
This section does not grant to such officers any
powers not authorized by the law of the State in
which those officers are employed.

§ 70119

TITLE 46—SHIPPING

(Added Pub. L. 108–293, title VIII, § 801(a), Aug. 9,
2004, 118 Stat. 1078, § 70119; renumbered § 70118,
Pub. L. 109–241, title IX, § 901(l)(1), July 11, 2006,
120 Stat. 565; Pub. L. 109–304, § 15(33)(A), Oct. 6,
2006, 120 Stat. 1705; Pub. L. 110–181, div. C, title
XXXV, § 3529(c)(1), Jan. 28, 2008, 122 Stat. 603.)
PRIOR PROVISIONS
A prior section 70118 was renumbered section 70117 of
this title and subsequently repealed.
Another prior section 70118 was renumbered section
70121 of this title.
AMENDMENTS
2008—Pub. L. 110–181 repealed Pub. L. 109–304,
§ 15(33)(A). See 2006 Amendment note below.
2006—Pub. L. 109–304, § 15(33)(A), which directed renumbering identical to that made by Pub. L. 109–241,
was repealed by Pub. L. 110–181. See Amendment note
and Construction of 2006 Amendment note below.
Pub. L. 109–241 renumbered section 70119 of this title,
as added by Pub. L. 108–293, § 801(a), as this section.
CONSTRUCTION OF 2006 AMENDMENT
Provisions of Pub. L. 109–304 repealed by section
3529(c)(1) of Pub. L. 110–181 to be treated as if never enacted, see section 3529(c)(2) of Pub. L. 110–181, set out as
a note under section 9504 of Title 26, Internal Revenue
Code.

§ 70119. Civil penalty
(a) IN GENERAL.—Any person that violates this
chapter or any regulation under this chapter
shall be liable to the United States for a civil
penalty of not more than $25,000 for each day
during which the violation continues.
(b) CONTINUING VIOLATIONS.—The maximum
amount of a civil penalty for a violation under
this section shall not exceed $50,000.
(Added Pub. L. 107–295, title I, § 102(a), Nov. 25,
2002, 116 Stat. 2084, § 70117; renumbered § 70119,
Pub. L. 108–293, title VIII, § 802(a)(1), Aug. 9, 2004,
118 Stat. 1078; amended Pub. L. 109–241, title III,
§ 306(a), July 11, 2006, 120 Stat. 528.)
CODIFICATION
Another section 70119 was renumbered section 70118 of
this title.
AMENDMENTS
2006—Pub. L. 109–241 designated existing provisions as
subsec. (a), inserted heading, substituted ‘‘day during
which the violation continues’’ for ‘‘violation’’, and
added subsec. (b).

§ 70120. In rem liability for civil penalties and
certain costs
(a) CIVIL PENALTIES.—Any vessel operated in
violation of this chapter or any regulations prescribed under this chapter shall be liable in rem
for any civil penalty assessed pursuant to section 70119 for such violation, and may be proceeded against for such liability in the United
States district court for any district in which
the vessel may be found.
(b) REIMBURSABLE COSTS OF SERVICE PROVIDERS.—A vessel shall be liable in rem for the
reimbursable costs incurred by any service provider related to implementation and enforcement of this chapter and arising from a violation by the operator of the vessel of this chapter
or any regulations prescribed under this chap-

Page 442

ter, and may be proceeded against for such liability in the United States district court for
any district in which such vessel may be found.
(c) DEFINITIONS.—In this subsection—
(1) the term ‘‘reimbursable costs’’ means
costs incurred by any service provider acting
in conformity with a lawful order of the Federal government or in conformity with the instructions of the vessel operator; and
(2) the term ‘‘service provider’’ means any
port authority, facility or terminal operator,
shipping agent, Federal, State, or local government agency, or other person to whom the
management of the vessel at the port of supply is entrusted, for—
(A) services rendered to or in relation to
vessel crew on board the vessel, or in transit
to or from the vessel, including accommodation, detention, transportation, and medical
expenses; and
(B) required handling of cargo or other
items on board the vessel.
(Added Pub. L. 108–293, title VIII, § 802(a)(2), Aug.
9, 2004, 118 Stat. 1078, § 70117; renumbered § 70120
and amended Pub. L. 109–241, title IX, § 901(l)(2),
(3), July 11, 2006, 120 Stat. 565; Pub. L. 109–304,
§ 15(33)(B), (C), Oct. 6, 2006, 120 Stat. 1705; Pub. L.
110–181, div. C, title XXXV, § 3529(c)(1), Jan. 28,
2008, 122 Stat. 603.)
AMENDMENTS
2008—Pub. L. 110–181 repealed Pub. L. 109–304,
§ 15(33)(B), (C). See 2006 Amendment notes below.
2006—Pub. L. 109–304, § 15(33)(B), which directed renumbering identical to that made by Pub. L. 109–241,
§ 901(l)(2), was repealed by Pub. L. 110–181. See Amendment note and Construction of 2006 Amendment note
below.
Pub. L. 109–241, § 901(l)(2), renumbered section 70117 of
this title, as added by Pub. L. 108–293, § 802(a)(2), as this
section.
Subsec. (a). Pub. L. 109–304, § 15(33)(C), which directed
amendment identical to that made by Pub. L. 109–241,
§ 901(l)(3), was repealed by Pub. L. 110–181. See Amendment note and Construction of 2006 Amendment note
below.
Pub. L. 109–241, § 901(l)(3), substituted ‘‘section 70119’’
for ‘‘section 70120’’.
CONSTRUCTION OF 2006 AMENDMENT
Provisions of Pub. L. 109–304 repealed by section
3529(c)(1) of Pub. L. 110–181 to be treated as if never enacted, see section 3529(c)(2) of Pub. L. 110–181, set out as
a note under section 9504 of Title 26, Internal Revenue
Code.

§ 70121. Withholding of clearance
(a) REFUSAL OR REVOCATION OF CLEARANCE.—If
any owner, agent, master, officer, or person in
charge of a vessel is liable for a penalty under
section 70119, or if reasonable cause exists to believe that the owner, agent, master, officer, or
person in charge may be subject to a penalty
under section 70119, the Secretary may, with respect to such vessel, refuse or revoke any clearance required by section 60105 of this title.
(b) CLEARANCE UPON FILING OF BOND OR OTHER
SURETY.—The Secretary may require the filing
of a bond or other surety as a condition of granting clearance refused or revoked under this subsection.
(Added Pub. L. 108–293, title VIII, § 802(a)(2), Aug.
9, 2004, 118 Stat. 1079, § 70118; renumbered § 70121

Page 443

§ 70125

TITLE 46—SHIPPING

and amended Pub. L. 109–241, title IX, § 901(l)(2),
(4), July 11, 2006, 120 Stat. 565; Pub. L. 109–304,
§ 15(33)(B), (D), Oct. 6, 2006, 120 Stat. 1705; Pub. L.
110–181, div. C, title XXXV, § 3529(c)(1), Jan. 28,
2008, 122 Stat. 603.)
AMENDMENTS
2008—Pub. L. 110–181 repealed Pub. L. 109–304,
§ 15(33)(B), (D)(i). See 2006 Amendment notes below.
2006—Pub. L. 109–304, § 15(33)(B), which directed renumbering identical to that made by Pub. L. 109–241,
§ 901(l)(2), was repealed by Pub. L. 110–181. See Amendment note and Construction of 2006 Amendment note
below.
Pub. L. 109–241, § 901(l)(2), renumbered section 70118 of
this title, as added by Pub. L. 108–293, § 802(a)(2), as this
section.
Subsec. (a). Pub. L. 109–304, § 15(33)(D)(ii), substituted
‘‘section 60105 of this title’’ for ‘‘section 4197 of the Revised Statutes of the United States (46 U.S.C. App. 91)’’.
Pub. L. 109–304, § 15(33)(D)(i), which directed amendment identical to that made by Pub. L. 109–241,
§ 901(l)(4), was repealed by Pub. L. 110–181. See Amendment note and Construction of 2006 Amendment note
below.
Pub. L. 109–241, § 901(l)(4), substituted ‘‘section 70119’’
for ‘‘section 70120’’.
CONSTRUCTION OF 2006 AMENDMENT
Provisions of Pub. L. 109–304 repealed by section
3529(c)(1) of Pub. L. 110–181 to be treated as if never enacted, see section 3529(c)(2) of Pub. L. 110–181, set out as
a note under section 9504 of Title 26, Internal Revenue
Code.

§ 70122. Waterway watch program 1
(a) PROGRAM ESTABLISHED.—There is hereby
established, within the Coast Guard, the America’s Waterway Watch Program.
(b) PURPOSE.—The Secretary shall administer
the Program in a manner that promotes voluntary reporting of activities that may indicate
that a person or persons may be preparing to engage or engaging in a violation of law relating
to a threat or an act of terrorism (as that term
is defined in section 3077 of title 18) against a
vessel, facility, port, or waterway.
(c) INFORMATION; TRAINING.—
(1) INFORMATION.—The Secretary may establish, as an element of the Program, a network
of individuals and community-based organizations that encourage the public and industry
to recognize activities referred to in subsection (b), promote voluntary reporting of
such activity, and enhance the situational
awareness within the Nation’s ports and
waterways. Such network shall, to the extent
practicable, be conducted in cooperation with
Federal, State, and local law enforcement
agencies.
(2) TRAINING.—The Secretary may provide
training in—
(A) observing and reporting on covered activities; and
(B) sharing such reports and coordinating
the response by Federal, State, and local law
enforcement agencies.
(d) VOLUNTARY PARTICIPATION.—Participation
in the Program—
(1) shall be wholly voluntary;
1 So in original. Probably should be ‘‘Waterway Watch Program’’.

(2) shall not be a prerequisite to eligibility
for, or receipt of, any other service or assistance from, or to participation in, any other
program of any kind; and
(3) shall not require disclosure of information regarding the individual reporting covered activities or, for proprietary purposes,
the location of such individual.
(e) COORDINATION.—The Secretary shall coordinate the Program with other like watch programs. The Secretary shall submit, concurrent
with the President’s budget submission for each
fiscal year, a report on coordination of the Program and like watch programs within the Department of Homeland Security to the Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Homeland
Security of the House of Representatives.
(f) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for the purposes of this section $3,000,000 for each of fiscal
years 2011 through 2016. Such funds shall remain
available until expended.
(Added Pub. L. 111–281, title VIII, § 801(a), Oct. 15,
2010, 124 Stat. 2988.)
§ 70123. Mobile biometric identification
(a) IN GENERAL.—Within one year after the
date of the enactment of the Coast Guard Authorization Act of 2010, the Secretary shall conduct, in the maritime environment, a program
for the mobile biometric identification of suspected individuals, including terrorists, to enhance border security and for other purposes.
(b) REQUIREMENTS.—The Secretary shall ensure the program required in this section is
coordinated with other biometric identification
programs within the Department of Homeland
Security.
(c) DEFINITION.—For the purposes of this section, the term ‘‘biometric identification’’ means
use of fingerprint and digital photography images and facial and iris scan technology and any
other technology considered applicable by the
Department of Homeland Security.
(Added Pub. L. 111–281, title VIII, § 807(a), Oct. 15,
2010, 124 Stat. 2993.)
REFERENCES IN TEXT
The date of the enactment of the Coast Guard Authorization Act of 2010, referred to in subsec. (a), is the
date of enactment of Pub. L. 111–281, which was approved Oct. 15, 2010.

§ 70124. Regulations
Unless otherwise provided, the Secretary may
issue regulations necessary to implement this
chapter.
(Added Pub. L. 111–281, title VIII, § 820(a), Oct. 15,
2010, 124 Stat. 3001.)
§ 70125. Port security training for facility security officers
(a) FACILITY SECURITY OFFICERS.—The Secretary shall establish comprehensive facility security officer training requirements designed to
provide full security training that would lead to
certification of such officers. In establishing the
requirements, the Secretary shall—

§ 70131

TITLE 46—SHIPPING

(1) work with affected industry stakeholders;
and
(2) evaluate—
(A) the requirements of subsection (b);
(B) existing security training programs
employed at marine terminal facilities; and
(C) existing port security training programs developed by the Federal Government.
(b) REQUIREMENTS.—The training program
shall provide validated training that—
(1) provides training at the awareness, performance, management, and planning levels;
(2) utilizes multiple training mediums and
methods;
(3) establishes a validated provisional online certification methodology;
(4) provide for continuing education and
training for facility security officers beyond
certification requirements, including a program to educate on the dangers and issues associated with the shipment of hazardous and
especially hazardous cargo;
(5) addresses port security topics, including—
(A) facility security plans and procedures,
including how to develop security plans and
security
procedure
requirements
when
threat levels are elevated;
(B) facility security force operations and
management;
(C) physical security and access control at
facilities;
(D) methods of security for preventing and
countering cargo theft;
(E) container security;
(F) recognition and detection of weapons,
dangerous substances, and devices;
(G) operation and maintenance of security
equipment and systems;
(H) security threats and patterns;
(I) security incident procedures, including
procedures for communicating with governmental and nongovernmental emergency response providers; and
(J) evacuation procedures;
(6) is consistent with, and supports implementation of, the National Incident Management System, the National Response Plan, the
National Infrastructure Protection Plan, the
National Preparedness Guidance, the National
Preparedness Goal, the National Maritime
Transportation Security Plan, and other such
national initiatives;
(7) is evaluated against clear and consistent
performance measures;
(8) addresses security requirements under facility security plans;
(9) addresses requirements under the International Code for the Security of Ships and
Port Facilities to address shore leave for mariners and access to visitors, representatives of
seafarers’ welfare organizations, and labor organizations; and
(10) such other subject matters as may be
prescribed by the Secretary.
(c) CONTINUING SECURITY TRAINING.—The Secretary, in coordination with the Secretary of
Transportation, shall work with State and local
law enforcement agencies and industry stake-

Page 444

holders to develop and certify the following additional security training requirements for Federal, State, and local officials with security responsibilities at United States seaports:
(1) A program to familiarize them with port
and shipping operations, requirements of the
Maritime Transportation Security Act of 2002
(Public Law 107–295), and other port and cargo
security programs that educates and trains
them with respect to their roles and responsibilities.
(2) A program to familiarize them with dangers and potential issues with respect to shipments of hazardous and especially hazardous
cargoes.
(3) A program of continuing education as
deemed necessary by the Secretary.
(d) TRAINING PARTNERS.—In developing curriculum and delivering training established pursuant to subsections (a) and (c), the Secretary,
in coordination with the Maritime Administrator of the Department of Transportation and
consistent with section 109 of the Maritime
Transportation Security Act of 2002 (46 U.S.C.
70101 note), shall work with institutions with
maritime expertise and with industry stakeholders with security expertise to develop appropriate training capacity to ensure that training
can be provided in a geographically balanced
manner to personnel seeking certification under
subsection (a) or education and training under
subsection (c).
(e) ESTABLISHED GRANT PROGRAM.—The Secretary shall issue regulations or grant solicitations for grants for homeland security or port
security to ensure that activities surrounding
the development of curriculum and the provision of training and these activities are eligible
grant activities under both grant programs.
(Added Pub. L. 111–281, title VIII, § 821(a), Oct. 15,
2010, 124 Stat. 3001; amended Pub. L. 111–330,
§ 1(14), Dec. 22, 2010, 124 Stat. 3570.)
REFERENCES IN TEXT
The Maritime Transportation Security Act of 2002,
referred to in subsec. (c)(1), is Pub. L. 107–295, Nov. 25,
2002, 116 Stat. 2064. For complete classification of this
Act to the Code, see Tables.
AMENDMENTS
2010—Pub. L. 111–330 amended Pub. L. 111–281, § 821(a),
which enacted this section.
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–330, § 1, Dec. 22, 2010, 124 Stat. 3569, provided that the amendment made by section 1(12) is effective with the enactment of Pub. L. 111–281.

SUBCHAPTER II—PORT SECURITY ZONES
AMENDMENTS
Pub. L. 111–330, § 1(16), Dec. 22, 2010, 124 Stat. 3570,
amended Pub. L. 111–281, title VIII, § 828(a), Oct. 15, 2010,
124 Stat. 3005, which added subchapter II heading.

§ 70131. Definitions
In this subchapter:
(1) LAW ENFORCEMENT AGENCY.—The term
‘‘law enforcement agency’’ means an agency of
a State, a political subdivision of a State, or
a Federally recognized tribe that is authorized

Page 445

§ 70132

TITLE 46—SHIPPING

by law to supervise the prevention, detection,
investigation, or prosecution of any violation
of criminal law.
(2) SECURITY ZONE.—The term ‘‘security
zone’’ means a security zone, established by
the Commandant of the Coast Guard or the
Commandant’s designee pursuant to section 1
of title II of the Act of June 15, 1917 (50 U.S.C.
191) or section 7(b) of the Ports and Waterways
Safety Act (33 U.S.C. 1226(b)), for a vessel carrying especially hazardous cargo when such
vessel—
(A) enters, or operates within, the internal
waters of the United States and the territorial sea of the United States; or
(B) transfers such cargo or residue in any
port or place, under the jurisdiction of the
United States, within the territorial sea of
the United States or the internal waters of
the United States.
(Added Pub. L. 111–281, title VIII, § 828(a), Oct. 15,
2010, 124 Stat. 3005; amended Pub. L. 111–330,
§ 1(16), Dec. 22, 2010, 124 Stat. 3570.)
AMENDMENTS
2010—Pub. L. 111–330 amended Pub. L. 111–281, § 828(a),
which enacted this section.
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–330, § 1, Dec. 22, 2010, 124 Stat. 3569, provided that the amendment made by section 1(16) is effective with the enactment of Pub. L. 111–281.

§ 70132. Credentialing standards, training, and
certification for State and local support for
the enforcement of security zones for the
transportation of especially hazardous cargo
(a) STANDARD.—The Commandant of the Coast
Guard shall establish, by regulation, national
standards for training and credentialing of law
enforcement personnel—
(1) to enforce a security zone; or
(2) to assist in the enforcement of a security
zone.
(b) TRAINING.—
(1) The Commandant of the Coast Guard—
(A) shall develop and publish a training
curriculum for—
(i) law enforcement personnel to enforce
a security zone;
(ii) law enforcement personnel to enforce
or assist in the enforcement of a security
zone; and
(iii) personnel who are employed or retained by a facility or vessel owner to assist in the enforcement of a security zone;
and
(B) may—
(i) test and deliver such training, the
curriculum for which is developed pursuant to subparagraph (A);
(ii) enter into an agreement under which
a public entity (including a Federal agency) or private entity may test and deliver
such training, the curriculum for which
has been developed pursuant to subparagraph (A); and
(iii) may accept a program, conducted by
a public entity (including a Federal agency) or private entity, through which such

training is delivered the curriculum for
which is developed pursuant to subparagraph (A).
(2) Any Federal agency that provides such
training, and any public or private entity that
receives
moneys,
pursuant
to
section
70107(b)(8) of this title, to provide such training, shall provide such training—
(A) to law enforcement personnel who enforce or assist in the enforcement of a security zone; and
(B) on an availability basis to—
(i) law enforcement personnel who assist
in the enforcement of a security zone; and
(ii) personnel who are employed or retained by a facility or vessel owner or operator to assist in the enforcement of a security zone.
(3) If a Federal agency provides the training,
the head of such agency may, notwithstanding
any other provision of law, accept payment
from any source for such training, and any
amount received as payment shall be credited
to the appropriation, current at the time of
collection, charged with the cost thereof and
shall be merged with, and available for, the
same purposes of such appropriation.
(4) Notwithstanding any other provision of
law, any moneys, awarded by the Department
of Homeland Security in the form of awards or
grants, may be used by the recipient to pay for
training of personnel to assist in the enforcement of security zones and limited access
areas.
(c) CERTIFICATION; TRAINING PARTNERS.—In developing and delivering training under the training program, the Secretary, in coordination
with the Maritime Administrator of the Department of Transportation, and consistent with
section 109 of the Maritime Transportation Security Act of 2002 (46 U.S.C. 70101 note), shall—
(1) work with government training facilities,
academic institutions, private organizations,
employee organizations, and other entities
that provide specialized, state-of-the-art training for governmental and nongovernmental
emergency responder providers or commercial
seaport personnel and management;
(2) utilize, as appropriate, government training facilities, courses provided by community
colleges, public safety academies, State and
private universities, and other facilities; and
(3) certify organizations that offer the curriculum for training and certification.
(Added Pub. L. 111–281, title VIII, § 828(a), Oct. 15,
2010, 124 Stat. 3005; amended Pub. L. 111–330,
§ 1(16), Dec. 22, 2010, 124 Stat. 3570.)
REFERENCES IN TEXT
Section 109 of the Maritime Transportation Security
Act of 2002, referred to in subsec. (c), is section 109 of
title I of Pub. L. 107–295, which is set out as a note
under section 70101 of this title.
AMENDMENTS
2010—Pub. L. 111–330 amended Pub. L. 111–281, § 828(a),
which enacted this section.
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–330, § 1, Dec. 22, 2010, 124 Stat. 3569, provided that the amendment made by section 1(16) is effective with the enactment of Pub. L. 111–281.

§ 70301

TITLE 46—SHIPPING

CHAPTER 703—MARITIME SECURITY
Sec.

70301.
70302.
70303.
70304.
70305.
70306.

Definitions.
International measures for seaport and vessel
security.
Security standards at foreign ports.
Travel advisories on security at foreign ports.
Suspension of passenger services.
Report on terrorist threats.

§ 70301. Definitions
In this chapter:
(1) COMMON CARRIER.—The term ‘‘common
carrier’’ has the meaning given that term in
section 40102 of this title.
(2) PASSENGER VESSEL.—The term ‘‘passenger vessel’’ has the meaning given that
term in section 2101 of this title.
(3) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the department in
which the Coast Guard is operating.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat.
1683.)
HISTORICAL AND REVISION NOTES
Revised
Section
70301 ..........

Source (U.S. Code)
46 App.:1807.

Source (Statutes at Large)
Pub. L. 99–399, title IX, § 911,
Aug. 27, 1986, 100 Stat. 892.

In paragraph (2), the term ‘‘vessel of the United
States’’ is omitted because the definition of that term
in 46 U.S.C. 2101 is being moved to chapter 1 of the revised title and will apply generally throughout the
title.
In paragraph (3), the definition of ‘‘Secretary’’ is new.
The functions of the Secretary of Transportation under
this chapter were carried out by the Coast Guard, and
its functions have been transferred to the Department
of Homeland Security (except when operating as a service in the Navy) by section 888 of the Homeland Security Act of 2002 (Pub. L. 107–296, 116 Stat. 2249).

§ 70302. International measures for seaport and
vessel security
Congress encourages the President to continue
to seek agreement on international seaport and
vessel security through the International Maritime Organization. In developing an agreement,
each member country of the International Maritime Organization should consult with appropriate private sector interests in that country.
The agreement would establish seaport and vessel security measures and could include—
(1) seaport screening of cargo and baggage
similar to that done at airports;
(2) security measures to restrict access to
cargo, vessels, and dockside property to authorized personnel only;
(3) additional security on board vessels;
(4) licensing or certification of compliance
with appropriate security standards; and
(5) other appropriate measures to prevent
unlawful acts against passengers and crews on
vessels.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat.
1683.)
HISTORICAL AND REVISION NOTES
Revised
Section
70302 ..........

Source (U.S. Code)
46 App.:1801.

Source (Statutes at Large)
Pub. L. 99–399, title IX, § 902,
Aug. 27, 1986, 100 Stat. 889.

Page 446

The word ‘‘vessel’’ is substituted for ‘‘shipboard’’ for
consistency in the revised title. The words ‘‘and commends him on his efforts to date’’ are omitted as unnecessary.

§ 70303. Security standards at foreign ports
(a) GENERAL REQUIREMENTS.—The Secretary
shall develop and implement a plan to assess the
effectiveness of the security measures maintained at foreign ports that the Secretary, in
consultation with the Secretary of State, determines pose a high risk of acts of terrorism
against passenger vessels. In carrying out this
subsection, the Secretary shall consult with the
Secretary of State about the terrorist threat
that exists in each country and poses a high risk
of acts of terrorism against passenger vessels.
(b) NOTICE AND RECOMMENDATIONS TO OTHER
COUNTRIES.—If the Secretary, after implementing the plan under subsection (a), determines
that a port does not maintain and administer effective security measures, the Secretary of
State (after being informed by the Secretary)
shall—
(1) notify the appropriate government authorities of the country in which the port is
located of the determination; and
(2) recommend steps necessary to bring the
security measures at that port up to the
standard used by the Secretary in making the
assessment under subsection (a).
(c) ANTITERRORISM ASSISTANCE.—The President is encouraged to provide antiterrorism assistance related to maritime security under
chapter 8 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2349aa et seq.) to foreign
countries, especially for a port that the Secretary determines under subsection (b) does not
maintain and administer effective security
measures.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat.
1684.)
HISTORICAL AND REVISION NOTES
Revised
Section
70303 ..........

Source (U.S. Code)
46 App.:1803.

Source (Statutes at Large)
Pub. L. 99–399, title IX,
§ 907(a), (b), (d), (e), Aug.
27, 1986, 100 Stat. 891.

REFERENCES IN TEXT
The Foreign Assistance Act of 1961, referred to in subsec. (c), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424.
Chapter 8 of part II of the Act is classified generally to
part VIII (§ 2349aa et seq.) of subchapter II of chapter 32
of Title 22, Foreign Relations and Intercourse. For
complete classification of this Act to the Code, see
Short Title note set out under section 2151 of Title 22
and Tables.

§ 70304. Travel advisories on security at foreign
ports
(a) GENERAL REQUIREMENTS.—On being notified by the Secretary that the Secretary has determined that a condition exists that threatens
the safety or security of passengers, passenger
vessels, or crew traveling to or from a foreign
port that the Secretary has determined under
section 70303(b) of this title does not maintain
and administer effective security measures, the
Secretary of State immediately shall issue a

Page 447

travel advisory for that port. The Secretary of
State shall take the necessary steps to widely
publicize the travel advisory.
(b) LIFTING ADVISORIES.—A travel advisory issued under subsection (a) may be lifted only if
the Secretary, in consultation with the Secretary of State, has determined that effective
security measures are maintained and administered at the port.
(c) NOTICE TO CONGRESS.—The Secretary of
State shall notify Congress immediately of any
change in the status of a travel advisory issued
under this section.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat.
1684.)
HISTORICAL AND REVISION NOTES
Revised
Section
70304 ..........

Source (U.S. Code)
46 App.:1804.

Source (Statutes at Large)
Pub. L. 99–399, title IX, § 908,
Aug. 27, 1986, 100 Stat. 891;
Pub. L. 105–277, div. G,
title XXII, § 2224(b), Oct.
21, 1998, 112 Stat. 2681–819.

In subsection (b), the words ‘‘with respect to which
the Secretary of Transportation had made the determination described in section 1803(d) of this Appendix’’
are omitted as unnecessary.

§ 70305. Suspension of passenger services
(a) GENERAL AUTHORITY.—Whenever the President determines that a foreign nation permits
the use of territory under its jurisdiction as a
base of operations or training for, or as a sanctuary for, or in any way arms, aids, or abets, a
terrorist or terrorist group that knowingly uses
the illegal seizure of passenger vessels or the
threat thereof as an instrument of policy, the
President may suspend the right of any passenger vessel common carrier to operate to or
from, and the right of any passenger vessel of
the United States to use, a port in that foreign
nation for passenger service. The suspension
may be without notice or hearing and for as long
as the President determines is necessary to ensure the security of passenger vessels against
unlawful seizure.
(b) PROHIBITION.—A passenger vessel common
carrier, or a passenger vessel of the United
States, may not operate in violation of a suspension under this section.
(c) PENALTIES.—
(1) DENIAL OF ENTRY.—If a person operates a
vessel in violation of this section, the Secretary may deny the vessels of that person
entry to ports of the United States.
(2) CIVIL PENALTY.—A person violating this
section is liable to the United States Government for a civil penalty of not more than
$50,000. Each day a vessel uses a prohibited
port is a separate violation.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat.
1684.)
HISTORICAL AND REVISION NOTES
Revised
Section
70305 ..........

§ 70306

TITLE 46—SHIPPING

Source (U.S. Code)

§ 70306. Report on terrorist threats
(a) CONTENT.—The Secretary shall submit an
annual report to Congress on the threat from
acts of terrorism to United States ports and vessels operating from those ports. The Secretary
shall include a description of activities undertaken under title I of the Maritime Transportation Security Act of 2002 (Public Law 107–295,
116 Stat. 2066) and an analysis of the effect of
those activities on port security against acts of
terrorism.
(b) SUBMISSION.—The report shall be submitted
to the Committee on International Relations
and the Committee on Transportation and Infrastructure of the House of Representatives and
the Committee on Foreign Relations and the
Committee on Commerce, Science, and Transportation of the Senate. Any classified information in the report shall be submitted separately
as an addendum.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat. 1685;
Pub. L. 109–241, title IX, § 901(q), July 11, 2006, 120
Stat. 566; Pub. L. 110–181, div. C, title XXXV,
§ 3525(a)(5), (b), Jan. 28, 2008, 122 Stat. 601.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

70306(a) ......

46 App.:1802.

70306(b) ......

46 App.:1809.

Source (Statutes at Large)
Pub. L. 99–399, title IX,
§§ 905, 913, Aug. 27, 1986, 100
Stat. 890, 892; Pub. L.
107–295, title I, § 110(a),
title IV, § 408(c)(3), Nov.
25, 2002, 116 Stat. 2091,
2117.

In subsection (a), the words ‘‘February 28 of each
year’’ are substituted for ‘‘February 28, 1987, and annually thereafter’’ in 46 App. U.S.C. 1802 to eliminate obsolete language. The words ‘‘Beginning with the first
report submitted under this section after the date of
enactment of the Maritime Transportation Security
Act of 2002’’ are omitted as obsolete.
In subsection (b), the words ‘‘To the extent practicable, the reports required under sections 903, 905, and
907 [46 App. U.S.C. 1801 note, 1802, 1803] shall be consolidated into a single document before being submitted to
the Congress’’ in 46 App. U.S.C. 1809(a) are omitted as
unnecessary and obsolete because sections 903 and 907
are being omitted from the revised title and repealed as
obsolete. The words ‘‘Committee on International Relations’’ are substituted for ‘‘Committee on Foreign Affairs’’ to reflect changes in committee structure made
by the 104th Congress.
REFERENCES IN TEXT
The Maritime Transportation Security Act of 2002,
referred to in subsec. (a), is Pub. L. 107–295, Nov. 25,
2002, 116 Stat. 2064. Title I of the Act enacted subtitle
VI (now subtitle VII) of this title, amended section 1802
of the former Appendix to this title, sections 661 and
724 of Title 14, Coast Guard, section 1431a of Title 19,
Customs Duties, sections 1226, 1501 to 1504, 1507, and 1520
of Title 33, Navigation and Navigable Waters, and sections 192 and 195 of Title 50, War and National Defense,
enacted provisions set out as notes under sections
70101, 70103, 70104, 70111, 70114, and 70116 of this title and
sections 1226 and 1504 of Title 33, amended provisions
set out as a note under section 2071 of Title 19, and repealed provisions set out as a note under section 2071 of
Title 19. For complete classification of title I to the
Code, see Tables.

Source (Statutes at Large)

AMENDMENTS
46 App.:1805.

Pub. L. 99–399, title IX, § 909,
Aug. 27, 1986, 100 Stat. 892.

2008—Pub. L. 110–181, § 3525(b), repealed Pub. L.
109–241, § 901(q). See 2006 Amendment note below.

§ 70501

TITLE 46—SHIPPING

Subsec. (a). Pub. L. 110–181, § 3525(a)(5), incorporated
the substance of the amendment by Pub. L. 109–241,
§ 901(q), into this section by substituting ‘‘The Secretary shall submit an annual report’’ for ‘‘Not later
than February 28 of each year, the Secretary shall submit a report’’. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative
Purpose and Construction note preceding section 101 of
this title.
2006—Pub. L. 109–241, § 901(q), which directed the
amendment of section 1802 of the former Appendix to
this title from which subsec. (a) of this section was derived, was repealed by Pub. L. 110–181, § 3525(b). See 2008
Amendment note for subsec. (a) and Historical and Revision notes above.

CHAPTER 705—MARITIME DRUG LAW
ENFORCEMENT
Sec.

70501.
70502.
70503.
70504.
70505.
70506.
70507.
70508.

Findings and declarations.
Definitions.
Manufacture, distribution, or possession of
controlled substances on vessels.
Jurisdiction and venue.
Failure to comply with international law as a
defense.
Penalties.
Forfeitures.
Operation of submersible vessel or semi-submersible vessel without nationality 1
AMENDMENTS

2008—Pub. L. 110–407, title II, § 202(b)(1), Oct. 13, 2008,
122 Stat. 4300, added item 70508.

§ 70501. Findings and declarations
Congress finds and declares that (1) trafficking
in controlled substances aboard vessels is a serious international problem, is universally condemned, and presents a specific threat to the security and societal well-being of the United
States and (2) operating or embarking in a submersible vessel or semi-submersible vessel without nationality and on an international voyage
is a serious international problem, facilitates
transnational crime, including drug trafficking,
and terrorism, and presents a specific threat to
the safety of maritime navigation and the security of the United States.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat. 1685;
Pub. L. 110–407, title II, § 201, Oct. 13, 2008, 122
Stat. 4299.)
HISTORICAL AND REVISION NOTES
Revised
Section
70501 ..........

Source (U.S. Code)
46 App.:1902.

Source (Statutes at Large)
Pub. L. 96–350, § 2, Sept. 15,
1980, 94 Stat. 1160; Pub. L.
99–307, § 7, May 19, 1986, 100
Stat. 447; Pub. L. 99–570,
title III, § 3202, Oct. 27,
1986, 100 Stat. 3207–95; Pub.
L. 99–640, § 17, Nov. 10,
1986, 100 Stat. 3552.

AMENDMENTS
2008—Pub. L. 110–407 inserted cl. (1) designation after
‘‘declares that’’, substituted ‘‘States and’’ for
‘‘States.’’, and added cl. (2).

§ 70502. Definitions
(a) APPLICATION OF OTHER DEFINITIONS.—The
definitions in section 102 of the Comprehensive
1 So

in original. Probably should be followed by a period.

Page 448

Drug Abuse Prevention and Control Act of 1970
(21 U.S.C. 802) apply to this chapter.
(b) VESSEL OF THE UNITED STATES.—In this
chapter, the term ‘‘vessel of the United States’’
means—
(1) a vessel documented under chapter 121 of
this title or numbered as provided in chapter
123 of this title;
(2) a vessel owned in any part by an individual who is a citizen of the United States, the
United States Government, the government of
a State or political subdivision of a State, or
a corporation incorporated under the laws of
the United States or of a State, unless—
(A) the vessel has been granted the nationality of a foreign nation under article 5 of
the 1958 Convention on the High Seas; and
(B) a claim of nationality or registry for
the vessel is made by the master or individual in charge at the time of the enforcement
action by an officer or employee of the
United States who is authorized to enforce
applicable provisions of United States law;
and
(3) a vessel that was once documented under
the laws of the United States and, in violation
of the laws of the United States, was sold to a
person not a citizen of the United States,
placed under foreign registry, or operated
under the authority of a foreign nation,
whether or not the vessel has been granted the
nationality of a foreign nation.
(c) VESSEL SUBJECT TO THE JURISDICTION OF
UNITED STATES.—
(1) IN GENERAL.—In this chapter, the term
‘‘vessel subject to the jurisdiction of the
United States’’ includes—
(A) a vessel without nationality;
(B) a vessel assimilated to a vessel without
nationality under paragraph (2) of article 6
of the 1958 Convention on the High Seas;
(C) a vessel registered in a foreign nation
if that nation has consented or waived objection to the enforcement of United States law
by the United States;
(D) a vessel in the customs waters of the
United States;
(E) a vessel in the territorial waters of a
foreign nation if the nation consents to the
enforcement of United States law by the
United States; and
(F) a vessel in the contiguous zone of the
United States, as defined in Presidential
Proclamation 7219 of September 2, 1999 (43
U.S.C. 1331 note), that—
(i) is entering the United States;
(ii) has departed the United States; or
(iii) is a hovering vessel as defined in
section 401 of the Tariff Act of 1930 (19
U.S.C. 1401).

THE

(2) CONSENT OR WAIVER OF OBJECTION.—Consent or waiver of objection by a foreign nation
to the enforcement of United States law by
the United States under paragraph (1)(C) or
(E)—
(A) may be obtained by radio, telephone,
or similar oral or electronic means; and
(B) is proved conclusively by certification
of the Secretary of State or the Secretary’s
designee.

Page 449

(d) VESSEL WITHOUT NATIONALITY.—
(1) IN GENERAL.—In this chapter, the term
‘‘vessel without nationality’’ includes—
(A) a vessel aboard which the master or individual in charge makes a claim of registry
that is denied by the nation whose registry
is claimed;
(B) a vessel aboard which the master or individual in charge fails, on request of an officer of the United States authorized to enforce applicable provisions of United States
law, to make a claim of nationality or registry for that vessel; and
(C) a vessel aboard which the master or individual in charge makes a claim of registry
and for which the claimed nation of registry
does not affirmatively and unequivocally assert that the vessel is of its nationality.
(2) RESPONSE TO CLAIM OF REGISTRY.—The response of a foreign nation to a claim of registry under paragraph (1)(A) or (C) may be
made by radio, telephone, or similar oral or
electronic means, and is proved conclusively
by certification of the Secretary of State or
the Secretary’s designee.
(e) CLAIM OF NATIONALITY OR REGISTRY.—A
claim of nationality or registry under this section includes only—
(1) possession on board the vessel and production of documents evidencing the vessel’s
nationality as provided in article 5 of the 1958
Convention on the High Seas;
(2) flying its nation’s ensign or flag; or
(3) a verbal claim of nationality or registry
by the master or individual in charge of the
vessel.
(f) SEMI-SUBMERSIBLE VESSEL; SUBMERSIBLE
VESSEL.—In this chapter:
(1) SEMI-SUBMERSIBLE VESSEL.—The term
‘‘semi-submersible vessel’’ means any watercraft constructed or adapted to be capable of
operating with most of its hull and bulk under
the surface of the water, including both
manned and unmanned watercraft.
(2) SUBMERSIBLE VESSEL.—The term ‘‘submersible vessel’’ means a vessel that is capable of operating completely below the surface
of the water, including both manned and unmanned watercraft.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat. 1685;
Pub. L. 109–241, title III, § 303, July 11, 2006, 120
Stat. 527; Pub. L. 110–181, div. C, title XXXV,
§ 3525(a)(6), (b), Jan. 28, 2008, 122 Stat. 601; Pub. L.
110–407, title II, § 203, Oct. 13, 2008, 122 Stat. 4300.)
HISTORICAL AND REVISION NOTES
Revised
Section

§ 70503

TITLE 46—SHIPPING

Source (U.S. Code)

70502(a) ......

46 App.:1903(i).

70502(b) ......

46 App.:1903(b).

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section
70502(c) ......
70502(d) ......
70502(e) ......

Source (U.S. Code)

Source (Statutes at Large)

46 App.:1903(c)(1).
46 App.:1903(c)(2).
46 App.:1903(c)(3).

In subsection (b)(2), before subparagraph (A), the
words ‘‘individual who is a citizen of the United
States’’ are substituted for ‘‘a citizen or national of the
United States’’ because of the definition of ‘‘citizen of
the United States’’ in chapter 1 of the revised title. The
words ‘‘or a territory, commonwealth, or possession of
the United States’’ and ‘‘the District of Columbia, or
any territory, commonwealth, or possession of the
United States’’ are omitted as unnecessary because of
the definition of ‘‘State’’ in chapter 1 of the revised
title.
In subsection (b)(3), the words ‘‘placed under foreign
registry, or operated under the authority of a foreign
nation’’ are substituted for ‘‘placed under foreign registry or foreign flag’’ because of the definition of ‘‘foreign vessel’’ in chapter 1 of the revised title.
In subsection (d)(1)(B), the word ‘‘authorized’’ is substituted for ‘‘empowered’’ for consistency with subsection (b)(2)(B).
AMENDMENTS
2008—Pub. L. 110–181, § 3525(b), repealed Pub. L.
109–241, § 303. See 2006 Amendment note below.
Subsec. (d)(2). Pub. L. 110–181, § 3525(a)(6), incorporated the substance of the amendment by Pub. L.
109–241, § 303, into this section by amending heading and
text of par. (2) generally. Prior to amendment, text
read as follows: ‘‘A claim of registry under paragraph
(1)(A) or (C) may be verified or denied by radio, telephone, or similar oral or electronic means. The denial
of such a claim is proved conclusively by certification
of the Secretary of State or the Secretary’s designee.’’
See 2006 Amendment note below and section 18(a) of
Pub. L. 109–304, set out as a Legislative Purpose and
Construction note preceding section 101 of this title.
Subsec. (f). Pub. L. 110–407 added subsec. (f).
2006—Pub. L. 109–241, § 303, which directed the amendment of section 1903(c)(2) of the former Appendix to this
title from which subsec. (d) of this section was derived,
was repealed by Pub. L. 110–181, § 3525(b). See 2008
Amendment note for subsec. (d)(2) and Historical and
Revision notes above.

§ 70503. Manufacture, distribution, or possession
of controlled substances on vessels
(a) PROHIBITIONS.—An individual may not
knowingly or intentionally manufacture or distribute, or possess with intent to manufacture
or distribute, a controlled substance on board—
(1) a vessel of the United States or a vessel
subject to the jurisdiction of the United
States; or
(2) any vessel if the individual is a citizen of
the United States or a resident alien of the
United States.

Source (Statutes at Large)

(b) EXTENSION BEYOND TERRITORIAL JURISDICTION.—Subsection (a) applies even though the

Pub. L. 96–350, § 3(b), (c), (i),
Sept. 15, 1980, 94 Stat. 1160;
Pub. L. 99–570, title III,
§ 3202, Oct. 27, 1986, 100
Stat. 3207–95, 3207–97; Pub.
L. 99–640, § 17, Nov. 10,
1986, 100 Stat. 3552, 3554;
Pub. L. 100–690, title VII,
§ 7402(b), Nov. 18, 1988, 102
Stat. 4483; Pub. L. 104–324,
§ 1138(a)(1)–(3), (b), Oct. 19,
1996, 110 Stat. 3988, 3989;
Pub. L. 107–295, title IV,
§ 418(a), Nov. 25, 2002, 116
Stat. 2123.

act is committed outside the territorial jurisdiction of the United States.
(c) NONAPPLICATION.—
(1) IN GENERAL.—Subject to paragraph (2),
subsection (a) does not apply to—
(A) a common or contract carrier or an
employee of the carrier who possesses or distributes a controlled substance in the lawful
and usual course of the carrier’s business; or
(B) a public vessel of the United States or
an individual on board the vessel who pos-

§ 70504

TITLE 46—SHIPPING

sesses or distributes a controlled substance
in the lawful course of the individual’s duties.
(2) ENTERED IN MANIFEST.—Paragraph (1) applies only if the controlled substance is part of
the cargo entered in the vessel’s manifest and
is intended to be imported lawfully into the
country of destination for scientific, medical,
or other lawful purposes.
(d) BURDEN OF PROOF.—The United States Government is not required to negative a defense
provided by subsection (c) in a complaint, information, indictment, or other pleading or in a
trial or other proceeding. The burden of going
forward with the evidence supporting the defense is on the person claiming its benefit.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat.
1687.)
HISTORICAL AND REVISION NOTES
Revised
Section
70503(a) ......

70503(b) ......
70503(c) ......
70503(d) ......

§ 70505. Failure to comply with international law
as a defense
A person charged with violating section 70503
of this title, or against whom a civil enforcement proceeding is brought under section 70508,
does not have standing to raise a claim of failure to comply with international law as a basis
for a defense. A claim of failure to comply with
international law in the enforcement of this
chapter may be made only by a foreign nation.
A failure to comply with international law does
not divest a court of jurisdiction and is not a defense to a proceeding under this chapter.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat. 1688;
Pub. L. 110–407, title II, § 202(b)(3), Oct. 13, 2008,
122 Stat. 4300.)

46 App.:1903(a).

Source (Statutes at Large)
Pub. L. 96–350, § 3(a), (e), (h),
Sept. 15, 1980, 94 Stat. 1160;
Pub. L. 99–570, title III,
§ 3202, Oct. 27, 1986, 100
Stat.
3207–95,
3207–96,
3207–97; Pub. L. 99–640, § 17,
Nov. 10, 1986, 100 Stat.
3552, 3554; Pub. L. 100–690,
title VII, § 7402(a), Nov. 18,
1988, 102 Stat. 4483.

46 App.:1903(h).
46 App.:1903(e) (1st
sentence).
46 App.:1903(e) (last
sentence).

(a) JURISDICTION.—Jurisdiction of the United
States with respect to a vessel subject to this
chapter is not an element of an offense. Jurisdictional issues arising under this chapter are
preliminary questions of law to be determined
solely by the trial judge.
(b) VENUE.—A person violating section 70503 or
70508 of this title shall be tried in the district
court of the United States for—
(1) the district at which the person enters
the United States; or
(2) the District of Columbia.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat. 1688;
Pub. L. 110–407, title II, § 202(b)(2), Oct. 13, 2008,
122 Stat. 4300.)
HISTORICAL AND REVISION NOTES
Source (U.S. Code)
46 App.:1903(f).

Revised
Section
70505 ..........

Source (U.S. Code)
46 App.:1903(d).

Source (Statutes at Large)
Pub. L. 96–350, § 3(d), Sept.
15, 1980, 94 Stat. 1160; Pub.
L. 99–570, title III, § 3202,
Oct. 27, 1986, 100 Stat.
3207–96; Pub. L. 99–640, § 17,
Nov. 10, 1986, 100 Stat.
3553; Pub. L. 104–324,
§ 1138(a)(4), Oct. 19, 1996,
110 Stat. 3989.

AMENDMENTS

§ 70504. Jurisdiction and venue

70504 ..........

AMENDMENTS
2008—Subsec. (b). Pub. L. 110–407 inserted ‘‘or 70508’’
after ‘‘70503’’ in introductory provisions.

HISTORICAL AND REVISION NOTES
Source (U.S. Code)

In subsection (a), before paragraph (1), the words
‘‘may not’’ are substituted for ‘‘It is unlawful for’’ for
consistency in the revised title and to eliminate unnecessary words.
In subsection (b), the words ‘‘applies to’’ are substituted for ‘‘is intended to reach’’ for clarity and to
eliminate unnecessary words.

Revised
Section

Page 450

Source (Statutes at Large)
Pub. L. 96–350, § 3(f), Sept.
15, 1980, 94 Stat. 1160; Pub.
L. 99–570, title III, § 3202,
Oct. 27, 1986, 100 Stat.
3207–97; Pub. L. 99–640, § 17,
Nov. 10, 1986, 100 Stat.
3554; Pub. L. 104–324,
§ 1138(a)(5), Oct. 19, 1996,
110 Stat. 3989.

2008—Pub. L. 110–407 substituted ‘‘this title, or
against whom a civil enforcement proceeding is
brought under section 70508,’’ for ‘‘this title’’.

§ 70506. Penalties
(a) VIOLATIONS.—A person violating section
70503 of this title shall be punished as provided
in section 1010 of the Comprehensive Drug Abuse
Prevention and Control Act of 1970 (21 U.S.C.
960). However, if the offense is a second or subsequent offense as provided in section 1012(b) of
that Act (21 U.S.C. 962(b)), the person shall be
punished as provided in section 1012 of that Act
(21 U.S.C. 962).
(b) ATTEMPTS AND CONSPIRACIES.—A person attempting or conspiring to violate section 70503
of this title is subject to the same penalties as
provided for violating section 70503.
(c) SIMPLE POSSESSION.—
(1) IN GENERAL.—Any individual on a vessel
subject to the jurisdiction of the United
States who is found by the Secretary, after notice and an opportunity for a hearing, to have
knowingly or intentionally possessed a controlled substance within the meaning of the
Controlled Substances Act (21 U.S.C. 812) shall
be liable to the United States for a civil penalty of not to exceed $5,000 for each violation.
The Secretary shall notify the individual in
writing of the amount of the civil penalty.
(2) DETERMINATION OF AMOUNT.—In determining the amount of the penalty, the Secretary
shall consider the nature, circumstances, extent, and gravity of the prohibited acts committed and, with respect to the violator, the
degree of culpability, any history of prior offenses, ability to pay, and other matters that
justice requires.

Page 451

(3) TREATMENT OF CIVIL PENALTY ASSESSMENT.—Assessment of a civil penalty under
this subsection shall not be considered a conviction for purposes of State or Federal law
but may be considered proof of possession if
such a determination is relevant.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat. 1688;
Pub. L. 111–281, title III, § 302, Oct. 15, 2010, 124
Stat. 2923.)
HISTORICAL AND REVISION NOTES
Revised
Section
70506(a) ......

70506(b) ......

§ 70507

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1903(g).

Source (Statutes at Large)
Pub. L. 96–350, § 3(g), (j),
Sept. 15, 1980, 94 Stat. 1160;
Pub. L. 99–570, title III,
§ 3202, Oct. 27, 1986, 100
Stat. 3207–97; Pub. L.
99–640, § 17, Nov. 10, 1986,
100 Stat. 3554; Pub. L.
101–647, title XII, § 1203,
Nov. 29, 1990, 104 Stat.
4830.

46 App.:1903(j).

In subsection (b), the words ‘‘the commission of
which was the object of the attempt or conspiracy’’ are
omitted as unnecessary.
REFERENCES IN TEXT
The Controlled Substances Act, referred to in subsec.
(c)(1), is title II of Pub. L. 91–513, Oct. 27, 1970, 84 Stat.
1242, which is classified principally to subchapter I
(§ 801 et seq.) of chapter 13 of Title 21, Food and Drugs.
For complete classification of this Act to the Code, see
Short Title note set out under section 801 of Title 21
and Tables.
AMENDMENTS
2010—Subsec. (c). Pub. L. 111–281 added subsec. (c).

§ 70507. Forfeitures
(a) IN GENERAL.—Property described in section
511(a) of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 881(a))
that is used or intended for use to commit, or to
facilitate the commission of, an offense under
section 70503 of this title may be seized and forfeited in the same manner that similar property
may be seized and forfeited under section 511 of
that Act (21 U.S.C. 881).
(b) PRIMA FACIE EVIDENCE OF VIOLATION.—
Practices commonly recognized as smuggling
tactics may provide prima facie evidence of intent to use a vessel to commit, or to facilitate
the commission of, an offense under section
70503 of this title, and may support seizure and
forfeiture of the vessel, even in the absence of
controlled substances aboard the vessel. The following indicia, among others, may be considered, in the totality of the circumstances, to be
prima facie evidence that a vessel is intended to
be used to commit, or to facilitate the commission of, such an offense:
(1) The construction or adaptation of the
vessel in a manner that facilitates smuggling,
including—
(A) the configuration of the vessel to ride
low in the water or present a low hull profile
to avoid being detected visually or by radar;
(B) the presence of any compartment or
equipment that is built or fitted out for
smuggling, not including items such as a
safe or lock-box reasonably used for the
storage of personal valuables;

(C) the presence of an auxiliary tank not
installed in accordance with applicable law
or installed in such a manner as to enhance
the vessel’s smuggling capability;
(D) the presence of engines that are excessively over-powered in relation to the design
and size of the vessel;
(E) the presence of materials used to reduce or alter the heat or radar signature of
the vessel and avoid detection;
(F) the presence of a camouflaging paint
scheme, or of materials used to camouflage
the vessel, to avoid detection; or
(G) the display of false vessel registration
numbers, false indicia of vessel nationality,
false vessel name, or false vessel homeport.
(2) The presence or absence of equipment,
personnel, or cargo inconsistent with the type
or declared purpose of the vessel.
(3) The presence of excessive fuel, lube oil,
food, water, or spare parts, inconsistent with
legitimate vessel operation, inconsistent with
the construction or equipment of the vessel, or
inconsistent with the character of the vessel’s
stated purpose.
(4) The operation of the vessel without lights
during times lights are required to be displayed under applicable law or regulation and
in a manner of navigation consistent with
smuggling tactics used to avoid detection by
law enforcement authorities.
(5) The failure of the vessel to stop or respond or heave to when hailed by government
authority, especially where the vessel conducts evasive maneuvering when hailed.
(6) The declaration to government authority
of apparently false information about the vessel, crew, or voyage or the failure to identify
the vessel by name or country of registration
when requested to do so by government authority.
(7) The presence of controlled substance residue on the vessel, on an item aboard the vessel, or on an individual aboard the vessel, of a
quantity or other nature that reasonably indicates manufacturing or distribution activity.
(8) The use of petroleum products or other
substances on the vessel to foil the detection
of controlled substance residue.
(9) The presence of a controlled substance in
the water in the vicinity of the vessel, where
given the currents, weather conditions, and
course and speed of the vessel, the quantity or
other nature is such that it reasonably indicates manufacturing or distribution activity.
(Pub. L. 109–304, § 10(2), Oct. 6, 2006, 120 Stat.
1688.)
HISTORICAL AND REVISION NOTES
Revised
Section
70507 ..........

Source (U.S. Code)
46 App.:1904.

Source (Statutes at Large)
Pub. L. 96–350, § 4, Sept. 15,
1980, 94 Stat. 1160; Pub. L.
99–570, title III, § 3202, Oct.
27, 1986, 100 Stat. 3207–97;
Pub. L. 99–640, § 17, Nov.
10, 1986, 100 Stat. 3554;
Pub. L. 107–295, title IV,
§ 418(b), Nov. 25, 2002, 116
Stat. 2123.

§ 70508

TITLE 46—SHIPPING

§ 70508. Operation of submersible vessel or semisubmersible vessel without nationality
(a) IN GENERAL.—An individual may not operate by any means or embark in any submersible
vessel or semi-submersible vessel that is without nationality and that is navigating or has
navigated into, through, or from waters beyond
the outer limit of the territorial sea of a single
country or a lateral limit of that country’s territorial sea with an adjacent country, with the
intent to evade detection.
(b) EVIDENCE OF INTENT TO EVADE DETECTION.—In any civil enforcement proceeding for a
violation of subsection (a), the presence of any
of the indicia described in paragraph (1)(A), (E),
(F), or (G), or in paragraph (4), (5), or (6), of section 70507(b) may be considered, in the totality
of the circumstances, to be prima facie evidence
of intent to evade detection.
(c) DEFENSES.—
(1) IN GENERAL.—It is a defense in any civil
enforcement proceeding for a violation of subsection (a) that the submersible vessel or
semi-submersible vessel involved was, at the
time of the violation—
(A) a vessel of the United States or lawfully registered in a foreign nation as
claimed by the master or individual in
charge of the vessel when requested to make
a claim by an officer of the United States
authorized to enforce applicable provisions
of United States law;
(B) classed by and designed in accordance
with the rules of a classification society;
(C) lawfully operated in government-regulated or licensed activity, including commerce, research, or exploration; or
(D) equipped with and using an operable
automatic identification system, vessel
monitoring system, or long range identification and tracking system.
(2) PRODUCTION OF DOCUMENTS.—The defenses
provided by this subsection are proved conclusively by the production of—
(A) government documents evidencing the
vessel’s nationality at the time of the offense, as provided in article 5 of the 1958
Convention on the High Seas;
(B) a certificate of classification issued by
the vessel’s classification society upon completion of relevant classification surveys and
valid at the time of the offense; or
(C) government documents evidencing licensure, regulation, or registration for research or exploration.
(d) CIVIL PENALTY.—A person violating this
section shall be liable to the United States for a
civil penalty of not more than $1,000,000.
(Added Pub. L. 110–407, title II, § 202(a), Oct. 13,
2008, 122 Stat. 4299.)

Subtitle VIII—Miscellaneous
Chapter

801.
803.
805.

Sec.

Wrecks and Salvage ............................ 80101
Ice and Derelicts ................................. 80301
Safe Containers for International
Cargo .................................................. 80501

Page 452

CHAPTER 801—WRECKS AND SALVAGE
Sec.

80101.
[80102.
80103.
80104.
80105.
80106.
80107.

Vessel stranded on foreign coast.
Repealed.]
Property on Florida coast to be taken to port
of entry.
Salvaging operations by foreign vessels.
Canadian vessels aiding vessels in United
States waters.
International agreement on derelicts.
Salvors of life to share in remuneration.
AMENDMENTS

2008—Pub. L. 110–375, § 1(2), Oct. 8, 2008, 122 Stat. 4055,
struck out item 80102 ‘‘License to salvage on Florida
coast’’.

§ 80101. Vessel stranded on foreign coast
(a) DUTIES OF CONSULAR OFFICER.—When a vessel of the United States is stranded on a coast of
a foreign country, the consular officer in that
country shall take proper measures, to the extent the laws of that country allow, to—
(1) save and secure the vessel and property
on the vessel; and
(2) prepare an inventory of the property that
is saved.
(b) DELIVERY TO OWNER.—After deducting the
expenses, the consular officer shall deliver the
property, with an inventory, to the owner of the
property.
(c) LIMITATION ON TAKING POSSESSION.—A consular officer may not take possession of property under this section when the owner, master,
or consignee is present or able to take possession of the property.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1690.)
HISTORICAL AND REVISION NOTES
Revised
Section
80101 ..........

Source (U.S. Code)
46 App.:721.

Source (Statutes at Large)
R.S. § 4238.

In this section, the words ‘‘consular officer’’ are substituted for ‘‘Consuls and vice consuls’’ and ‘‘consul or
vice consul’’ for consistency in the revised title.
Subsection (a)(1) is substituted for ‘‘as well for the
purpose of saving the vessels, their cargoes and appurtenances, as for storing and securing the effects and
merchandise saved’’ to eliminate unnecessary words.

[§ 80102. Repealed. Pub. L. 110–375, § 1(1), Oct. 8,
2008, 122 Stat. 4055]
Section, Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat.
1690, related to license to salvage on Florida coast.

§ 80103. Property on Florida coast to be taken to
port of entry
(a) IN GENERAL.—Property taken from a
wreck, the sea, or a key or shoal, on the coast
of Florida and within the jurisdiction of the
United States, shall be brought to a port of
entry of the United States.
(b) SEIZURE AND FORFEITURE.—A vessel transporting property described in subsection (a) to a
foreign port may be seized by, and forfeited to,
the United States Government. A forfeiture
under this subsection accrues half to the informer and half to the Government.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1690.)

Page 453
HISTORICAL AND REVISION NOTES
Revised
Section
80103 ..........

§ 80105

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:722.
46 App.:723.

Source (Statutes at Large)
R.S. § 4239.
R.S. § 4240.

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section
80104(b) ......
80104(c) ......

In subsection (a), the words ‘‘of any description whatsoever’’ are omitted as unnecessary.
In subsection (b), the words ‘‘transporting property
described in subsection (a) of this section’’ are substituted for ‘‘which shall be engaged or employed in
carrying or transporting any property whatsoever,
taken from any wreck, from the sea, or from any of the
keys or shoals, within the jurisdiction of the United
States, on the coast of Florida’’ to eliminate unnecessary words. The words ‘‘may be seized by, and forfeited
to, the United States Government’’ are substituted for
‘‘shall . . . be forfeited’’ for consistency in the revised
title. The words ‘‘together with her tackle, apparel, and
furniture’’ are omitted as unnecessary. The words ‘‘accrues half to the informer and half to the Government’’
are substituted for ‘‘one moiety to the informer and the
other to the United States’’ to use more commonly understood language.

§ 80104. Salvaging operations by foreign vessels
(a) PROHIBITION.—Except as provided in this
section or section 80105 of this title, a foreign
vessel may not, under penalty of forfeiture, engage in salvaging operations on the Atlantic or
Pacific coast of the United States, in any portion of the Great Lakes or their connecting or
tributary waters, including any portion of the
Saint Lawrence River through which the international boundary line extends, or in territorial
waters of the United States on the Gulf of Mexico.
(b) WHEN SUITABLE VESSEL NOT AVAILABLE.—
The Secretary of Homeland Security may authorize a foreign vessel to engage in salvaging
operations in a particular locality if, on investigation, the Secretary is satisfied that there is
not available in that locality a suitable vessel
that is—
(1) owned only by citizens of the United
States (including a Bowaters corporation
under section 12118 of this title); and
(2) documented under chapter 121 of this
title or numbered under chapter 123 of this
title.
(c) OPERATIONS AUTHORIZED BY TREATY.—This
section does not prohibit or restrict assistance
to vessels or salvaging operations authorized by
treaty, including—
(1) article II of the Treaty between the
United States and Great Britain concerning
reciprocal rights for United States and Canada
in the conveyance of prisoners and wrecking
and salvage, signed at Washington, May 18,
1908 (35 Stat. 2036); or
(2) the Treaty between the United States of
America and Mexico to facilitate assistance to
and salvage of vessels in territorial waters,
signed at Mexico City, June 13, 1935 (49 Stat.
3359).
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1691.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

80104(a) ......

46 App.:316(d)
(words before proviso).

R.S. § 4370(d), (e); June 11,
1940, ch. 324, 54 Stat. 305.

Source (U.S. Code)

Source (Statutes at Large)

46 App.:316(d) (proviso).
46 App.:316(e).

In subsection (a), the words ‘‘authorized by a treaty’’
are omitted because they are restated in subsection (c).
In subsection (b), before paragraph (1), the Secretary
of Homeland Security is substituted for the Commissioner of Customs because the functions of the Customs
Service and of the Secretary of the Treasury relating
thereto were transferred to the Secretary of Homeland
Security by section 403(1) of the Homeland Security
Act of 2002 (Pub. L. 107–296, 116 Stat. 2178). The functions of the Commissioner of Customs previously were
vested in the Secretary of the Treasury under section
321(c) of title 31. For prior related transfers of functions, see the transfer of functions note under 46 App.
U.S.C. 316. The words ‘‘and no penalty shall be incurred
for such authorized use’’ are omitted as unnecessary.
In subsection (b)(1), the words ‘‘(including a Bowaters
corporation under section 12118 of this title)’’ are added
because the source for section 12118 (46 App. U.S.C.
883–1) provides that a corporation meeting the requirements of that section is also a citizen of the United
States under 46 App. U.S.C. 316, restated in part in this
section.
Subsection (b)(2) is substituted for ‘‘documented
under the laws of the United States or numbered pursuant to the Act of June 7, 1918, as amended (46 U.S.C.
288)’’ to refer to the current provisions on documentation and numbering.
In subsection (c), the words ‘‘authorized by treaty, including’’ are added because the words ‘‘authorized by a
treaty’’ are omitted from subsection (a).

§ 80105. Canadian vessels
United States waters

aiding

vessels

in

(a) IN GENERAL.—Canadian vessels and wrecking equipment may give aid to Canadian or
other vessels and property wrecked, disabled, or
in distress in the waters of the United States
contiguous to Canada, including—
(1) the canal and improvement of the waters
between Lake Erie and Lake Huron; and
(2) the Saint Marys River and canal.
(b) RECIPROCITY.—This section does not apply
after the President proclaims that privileges reciprocal to those under subsection (a) have been
withdrawn or rendered inoperative by the Government of Canada.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1691.)
HISTORICAL AND REVISION NOTES
Revised
Section
80105 ..........

Source (U.S. Code)
46 App.:725.

Source (Statutes at Large)
June 19, 1878, ch. 324, 20
Stat. 175; May 24, 1890, ch.
292, 26 Stat. 120; Mar. 3,
1893, ch. 211, § 1 (last par.
under heading ‘‘Department of State’’), 27 Stat.
683.

In subsection (a), before paragraph (1), the word
‘‘equipment’’ is substituted for ‘‘appurtenance’’ to use
more commonly understood language. The words ‘‘and
assistance’’ are omitted as unnecessary.
Subsection (b) is substituted for ‘‘this section shall
cease to be in force and effect from and after the date
of the proclamation of the President of the United
States to the effect that said reciprocol privilege has
been withdrawn, revoked, or rendered inoperative by
the said Government of the Dominion of Canada’’ to
eliminate unnecessary words.

§ 80106

TITLE 46—SHIPPING

§ 80106. International agreement on derelicts
The President may make an international
agreement with other governments interested in
the navigation of the North Atlantic Ocean, providing for the reporting, marking, and removal
of dangerous wrecks, derelicts, and other menaces to navigation outside the coast waters of
the countries bordering the North Atlantic
Ocean.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1691.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

80106 ..........

46 App.:726.

Source (Statutes at Large)
Oct. 31, 1893, No. 13, 28 Stat.
13.

§ 80107. Salvors of life to share in remuneration
(a) ENTITLEMENT OF SALVORS.—A salvor of
human life, who gave aid following an accident
giving rise to salvage, is entitled to a fair share
of the payment awarded to the salvor for salvaging the vessel or other property or preventing or
minimizing damage to the environment.
(b) COMMON OWNERSHIP OF VESSELS.—The right
to remuneration for aid or salvage services is
not affected by common ownership of the vessels
giving and receiving the aid or salvage services.
(c) TIME LIMIT ON BRINGING ACTIONS.—A civil
action to recover remuneration for giving aid or
salvage services must be brought within 2 years
after the date the aid or salvage services were
given, unless the court in which the action is
brought is satisfied that during that 2-year period there had not been a reasonable opportunity to seize the aided or salvaged vessel within the jurisdiction of the court or within the territorial waters of the country of the plaintiff’s
residence or principal place of business.
(d) NONAPPLICATION.—This section does not
apply to a vessel of war or a vessel owned by the
United States Government appropriated only to
a public service.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1691.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

80107(a) ......

46 App.:729.

80107(b) ......
80107(c) ......
80107(d) ......

46 App.:727.
46 App.:730.
46 App.:731.

Source (Statutes at Large)
Aug. 1, 1912, ch. 268, §§ 1, 3–5,
37 Stat. 242; Pub. L.
102–241, § 40, Dec. 19, 1991,
105 Stat. 2225.

In subsection (c), the words ‘‘civil action’’ are substituted for ‘‘suit’’, the words ‘‘must be brought within
2 years after’’ are substituted for ‘‘shall not be maintainable if brought later than two years from’’, and the
word ‘‘seize’’ is substituted for ‘‘arresting’’, for consistency in the revised title. The words ‘‘of the plaintiff’s
residence or principal place of business’’ are substituted for ‘‘in which the libelant resides or has his
principal place of business’’ for consistency and to
eliminate unnecessary words.
In subsectoin [sic] (d), the reference to section 2304 of
title 46 is omitted because of the amendment to section
2304 in section 14(8) of the bill.

CHAPTER 803—ICE AND DERELICTS
Sec.

80301.

International agreements.

Page 454

Sec.

80302.
80303.

Patrol services.
Speed of vessel in ice region.

§ 80301. International agreements
(a) GENERAL AUTHORITY.—The President may
make agreements with interested maritime
countries to—
(1) maintain in the North Atlantic Ocean a
service of ice patrol, of study and observation
of ice and current conditions, and of assistance to vessels and their crews requiring assistance within the limits of the patrol;
(2) maintain a service of study and observation of ice and current conditions in the waters affecting the set and drift of ice in the
North Atlantic Ocean; and
(3) take all practicable steps to ensure the
destruction or removal of derelicts in the
northern part of the Atlantic Ocean, east of
the line drawn from Cape Sable to a point in
latitude 34 degrees north, longitude 70 degrees
west, if the destruction or removal is necessary.
(b) PAYMENT BETWEEN COUNTRIES.—The President may include in an agreement under subsection (a) a provision for—
(1) payment to the United States Government by other countries for their proportionate share of the expense of maintaining
the services; or
(2) contribution by the Government for its
proportionate share if the agreement provides
for another country to maintain the services.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1692.)
HISTORICAL AND REVISION NOTES
Revised
Section
80301 ..........

Source (U.S. Code)
46 App.:738.

Source (Statutes at Large)
June 25, 1936, ch. 807, § 1, 49
Stat. 1922.

§ 80302. Patrol services
(a)
GENERAL
REQUIREMENTS.—Unless
the
agreements made under section 80301 of this
title provide otherwise, an ice patrol shall be
maintained during the entire ice season in
guarding the southeastern, southern, and southwestern limits of the region of icebergs in the
vicinity of the Grand Banks of Newfoundland.
The patrol shall inform trans-Atlantic and other
passing vessels by radio and other available
means of the ice conditions and the extent of
the dangerous region. During the ice season,
there shall be maintained a service of study of
ice and current conditions, a service of providing assistance to vessels and crews requiring assistance, and a service of removing and destroying derelicts. Any of these services may be
maintained during the remainder of the year as
may be advisable.
(b) WARNINGS TO VESSELS.—An ice patrol vessel shall warn any vessel known to be approaching a dangerous area and recommend safe
routes.
(c) RECORDING AND REPORTING INCIDENTS.—
(1) RECORDING.—An ice patrol vessel shall
record the name of a vessel and the facts of
the case when the patrol observes or knows
that the vessel—

Page 455

(A) is on other than a regular recognized
or advertised route crossing the North Atlantic Ocean;
(B) has crossed the fishing banks of Newfoundland north of latitude 43 degrees north
during the fishing season; or
(C) has passed through regions known or
believed to be endangered by ice when proceeding to and from ports of North America.
(2) REPORTING.—The name of the vessel and
all pertinent information about the incident
shall be reported to the government of the
country to which the vessel belongs if that
government requests.
(d) ADMINISTRATION.—The Commandant of the
Coast Guard, under the direction of the Secretary of the department in which the Coast
Guard is operating, shall carry out the services
provided for in this section and shall assign necessary vessels, material, and personnel of the
Coast Guard. On request of such Secretary, the
head of an agency may detail personnel, lend or
contribute material or equipment, or otherwise
assist in carrying out the services provided for
in this section.
(e) ANNUAL REPORT.—The Commandant shall
publish an annual report of the activities of the
services provided for in this section. A copy of
the report shall be provided to each interested
foreign government and to each agency assisting
in the work.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1692.)
HISTORICAL AND REVISION NOTES
Revised
Section
80302 ..........

Source (U.S. Code)
46 App.:738a.

Source (Statutes at Large)
June 25, 1936, ch. 807, § 2, 49
Stat. 1922; Pub. L. 89–670,
§ 6(b)(1), Oct. 15, 1966, 80
Stat. 938.

In subsection (d), the words ‘‘Secretary of the department in which the Coast Guard is operating’’ are substituted for ‘‘Secretary of Transportation’’ because of
the transfer of the Coast Guard to the Department of
Homeland Security (except when operating as a service
in the Navy) by section 888 of the Homeland Security
Act of 2002 (Pub. L. 107–296, 116 Stat. 2249). See also sections 1 and 3 of title 14, as amended by section 1704(a)
of such Act (116 Stat. 2314).

§ 80303. Speed of vessel in ice region
(a) REQUIREMENT.—The master of a vessel of
the United States, when ice is reported on or
near the vessel’s course, shall proceed at a moderate speed or change the course of the vessel to
go well clear of the danger zone.
(b) CIVIL PENALTY.—A master violating this
section is liable to the United States Government for a civil penalty of not more than $500.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1693.)
HISTORICAL AND REVISION NOTES
Revised
Section
80303 ..........

§ 80501

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:738c.

Source (Statutes at Large)
June 25, 1936, ch. 807, § 4, 49
Stat. 1923.

In subsection (b), the words ‘‘liable to the United
States Government for a civil penalty’’ are substituted
for ‘‘liable to a fine’’ for clarity and for consistency in

the revised title. The words ‘‘for each offense’’ are
omitted as unnecessary.

CHAPTER 805—SAFE CONTAINERS FOR
INTERNATIONAL CARGO
Sec.

80501.
80502.
80503.
80504.
80505.
80506.
80507.
80508.
80509.

Definitions.
Application of Convention.
General authority of the Secretary.
Approval and examination.
Enforcement.
Delegation of authority.
Employee protection.
Amendments to Convention.
Civil penalty.

§ 80501. Definitions
In this chapter:
(1) CONTAINER.—The term ‘‘container’’ has
the meaning given that term in the Convention.
(2) CONVENTION.—The term ‘‘Convention’’
means the International Convention for Safe
Containers, and its annexes, done at Geneva,
Switzerland, December 2, 1972.
(3) INTERNATIONAL TRANSPORT.—The term
‘‘international transport’’ means the transportation of a container between—
(A) a place in a foreign country and a place
in the jurisdiction of the United States; or
(B) two places outside the United States
by United States carriers.
(4) OWNER.—The term ‘‘owner’’ includes the
lessee or bailee of a container if a written
lease or bailment provides for the lessee or
bailee to exercise the owner’s responsibility
for maintaining and examining the container.
(5) SAFETY APPROVAL PLATE.—The term
‘‘safety approval plate’’ has the meaning given
that term in annex I of the Convention.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1694.)
HISTORICAL AND REVISION NOTES
Revised
Section
80501 ..........

Source (U.S. Code)
46 App.:1501.

Source (Statutes at Large)
Pub. L. 95–208, § 2, Dec. 13,
1977, 91 Stat. 1475.

In the definition of ‘‘international transport’’, subparagraphs (A) and (B) are substituted for 46 App.
U.S.C. 1501(d)(1)–(3) to eliminate unnecessary words.
In the definition of ‘‘owner’’, the words ‘‘includes the
lessee or bailee of a container if a written lease or bailment provides for the lessee or bailee to exercise the
owner’s responsibility for maintaining and examining
the container’’ are substituted for ‘‘means a person who
owns a container, or, if a written lease or bailment provides for the lessee or bailee to exercise the owner’s responsibility for maintaining and examining the container, the lessee or bailee of a container, to the extent
such agreement so provides’’ to eliminate unnecessary
words.
The definition of ‘‘Secretary’’ is omitted because a
complete reference to the appropriate Secretary is used
the first time the Secretary is named in each section.
Throughout this chapter, the phrase ‘‘Secretary of the
department in which the Coast Guard is operating’’ is
substituted for ‘‘Secretary of Transportation’’ because
the Coast Guard has been transferred to the Department of Homeland Security (except when operating as
a service in the Navy) by section 888 of the Homeland
Security Act of 2002 (Pub. L. 107–296, 116 Stat. 2249).
The definition of ‘‘United States’’ is omitted because
‘‘United States’’ is defined in chapter 1 of the revised

§ 80502

TITLE 46—SHIPPING

title. The definitions of ‘‘new container’’ and ‘‘existing
container’’ are omitted as obsolete.

§ 80502. Application of Convention
The Convention applies to an owner of a container used in international transport if the
owner is domiciled or has its principal office in
the United States.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1694.)
HISTORICAL AND REVISION NOTES
Revised
Section
80502 ..........

Source (U.S. Code)
46 App.:1502(a) (related to application of Convention).

Source (Statutes at Large)
Pub. L. 95–208, § 3(a) (related
to application of Convention), Dec. 13, 1977, 91
Stat. 1476.

This section restates the applicability criteria of 46
App.:1502(a)(1) and (2) to improve the organization of
the chapter.

§ 80503. General authority of the Secretary
(a) IN GENERAL.—The Secretary of the department in which the Coast Guard is operating
shall carry out the Convention and this chapter
in the United States.
(b) REGULATIONS.—The Secretary shall prescribe regulations to carry out this chapter. The
regulations shall—
(1) establish procedures for testing, inspecting, and initially approving containers and designs for containers, including procedures for
attaching, invalidating, and removing safety
approval plates for containers;
(2) establish procedures to be followed by the
owners of containers for the periodic examination of containers as provided in the Convention; and
(3) provide a method for developing, collecting, and disseminating information about container safety and the international transport
of containers.
(c) SAFETY APPROVAL PLATES.—If the owner of
a container without a safety approval plate establishes that the container satisfies the standards of the Convention, the Secretary may authorize a safety approval plate to be attached to
the container.
(d) SCHEDULE OF FEES.—The Secretary may
prescribe a schedule of fees for services performed by the Secretary, or by a person delegated authority under section 80506 of this title,
for the testing, inspection, and initial approval
of containers and container designs.
(e) ENCOURAGING INTERMODAL TRANSPORT.—To
the maximum extent possible, the Secretary
shall encourage the development and use of
intermodal transport, using containers built to
facilitate economical, safe, and expeditious handling of containerized cargo without intermediate reloading when it is being transported over
land, air, and sea areas.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1694.)
HISTORICAL AND REVISION NOTES
Revised
Section
80503(a) ......

Source (U.S. Code)
46 App.:1503(a).

Source (Statutes at Large)
Pub. L. 95–208, § 4(a), (b),
(c)(1), (3), (e), Dec. 13, 1977,
91 Stat. 1476, 1477.

Page 456

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section
80503(b)
80503(c)
80503(d)
80503(e)

......
......
......
......

Source (U.S. Code)
46
46
46
46

Source (Statutes at Large)

App.:1503(b).
App.:1503(c)(1).
App.:1503(c)(3).
App.:1503(e).

In subsection (a), the words ‘‘On and after the date
the instrument of ratification is deposited by the
United States in accordance with the provisions of article VII of the Convention,’’ and ‘‘and, unless an earlier
date is specifically provided,’’ are omitted as obsolete.
In subsection (b), before paragraph (1), the words ‘‘as
soon as practicable after December 13, 1977’’ are omitted as obsolete. The word ‘‘prescribe’’ is substituted for
‘‘promulgate, and from time to time, amend’’ for consistency in the revised title and with other titles of the
United States Code and to eliminate unnecessary
words. The words ‘‘he deems necessary for such enforcement’’ and ‘‘among other things’’ are omitted as unnecessary. In paragraph (1), the words ‘‘existing’’ and
‘‘new’’ are omitted as obsolete.
In subsections (c) and (d), the words ‘‘At any time
after December 13, 1977’’ are omitted as obsolete.

§ 80504. Approval and examination
(a) DOMICILE AND PRINCIPAL OFFICE IN UNITED
STATES.—A container owner domiciled and having its principal office in the United States shall
have the container—
(1) approved initially under procedures prescribed by the Secretary of the department in
which the Coast Guard is operating or by the
government of another country that is a party
to the Convention; and
(2) examined periodically as provided in the
Convention under procedures prescribed by the
Secretary.
(b) DOMICILE OR PRINCIPAL OFFICE IN UNITED
STATES.—A container owner domiciled or having
its principal office in the United States shall
have the container—
(1) approved initially under procedures prescribed by the Secretary or by the government
of another country that is a party to the Convention; and
(2) examined periodically as provided in the
Convention, under procedures prescribed by
the government of the country in which the
owner is domiciled or has its principal office,
as long as that country is a party to the Convention.
(c) NEITHER DOMICILE NOR PRINCIPAL OFFICE IN
UNITED STATES.—A container owner neither
domiciled nor having its principal office in the
United States or another country that is a party
to the Convention may submit a container for
initial approval and periodic examination under
procedures prescribed by the Secretary.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1695.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

80504. .........

46 App.:1502(a) (related to approval
and examination).

Pub. L. 95–208, § 3(a) (related
to approval and examination), Dec. 13, 1977, 91
Stat. 1476.

In this section, the words ‘‘Beginning on the date the
instrument of ratification is deposited by the United
States in accordance with the provisions of article VII

Page 457

§ 80506

TITLE 46—SHIPPING

of the Convention, for new containers, and beginning
on September 6, 1982, for existing containers’’ are omitted as obsolete.
In subsections (a)(1) and (b)(1), the words ‘‘government of another country that is a party to the Convention’’ are substituted for ‘‘administration of another
contracting party to the Convention’’ for clarity.
In subsection (c), the word ‘‘initial’’ is added for consistency in the section.

§ 80505. Enforcement
(a) IN GENERAL.—To enforce the Convention,
this chapter, and regulations prescribed under
this chapter, the Secretary of the department in
which the Coast Guard is operating may—
(1) examine, or require to be examined, containers in international transport;
(2) approve designs for containers;
(3) inspect and test containers being manufactured;
(4) issue a detention order removing or excluding a container from service until the container owner satisfies the Secretary that the
container meets the standards of the Convention, if the container—
(A) does not have a safety approval plate
attached to it; or
(B) has a safety approval plate attached
but there is significant evidence that the
container is in a condition that creates an
obvious risk to safety;
(5) take other appropriate action, including
issuing necessary orders, to remove a container from service or restrict its use if the
container is not in compliance with the Convention, this chapter, or regulations prescribed under this chapter, but does not
present an obvious risk to safety; and
(6) allow a container found to be unsafe or
without a safety approval plate to be moved to
another location for repair or other disposition, under restrictions consistent with the intent of the Convention.
(b) PAYMENT OF EXPENSES.—
(1) EXAMINATION.—The owner of a container
involved in an action by the Secretary under
this section related to an examination of the
container shall pay or reimburse the Secretary for the expenses arising from that action, except for the costs of routine examinations of the container or a safety approval
plate.
(2) TESTING, INSPECTION, AND INITIAL APPROVAL.—The owner of a container submitted
to the procedure established by the Secretary
for testing, inspection, and initial approval,
and the manufacturer of a container that submits a design to the procedure established by
the Secretary for testing, inspection, and initial approval, shall pay or reimburse the Secretary for the expenses arising from the testing, inspection, or approval.
(3) CREDIT TO APPROPRIATION.—Amounts received by the Secretary as reimbursement
shall be credited to the appropriation for operating expenses of the Coast Guard.
(c) PRESUMPTION BASED ON SAFETY APPROVAL
PLATE.—A container bearing a safety approval
plate authorized by a country that is a party to
the Convention is presumed to be in a safe con-

dition unless there is significant evidence that
the container is in a condition that creates an
obvious risk to safety.
(d) NOTICE OF ORDERS.—
(1) IN GENERAL.—When the Secretary issues a
detention or other order under this section,
the Secretary promptly shall notify in writing—
(A) the owner of the container;
(B) the owner’s agent; or
(C) if the identity of the owner is not apparent from the container or shipping documents, the custodian.
(2) INFORMATION TO INCLUDE.—The notification shall identify the container involved, give
the location of the container, and describe the
condition or situation giving rise to the order.
(e) DURATION OF ORDERS.—An order issued by
the Secretary under this section remains in effect until—
(1) the Secretary declares the container to
be in compliance with the standards of the
Convention; or
(2) the container is removed permanently
from service.
(f) NOTICE OF DEFECTIVE CONTAINER TO COUNISSUING SAFETY APPROVAL PLATE.—If the
Secretary has reason to believe that a container
bearing a safety approval plate issued by another country was defective at the time of approval, the Secretary shall notify that country.

TRY

(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1695.)
HISTORICAL AND REVISION NOTES
Revised
Section
80505 ..........

Source (U.S. Code)
46 App.:1504.

Source (Statutes at Large)
Pub. L. 95–208, § 5, Dec. 13,
1977, 91 Stat. 1477; Pub. L.
97–249, § 1(2), Sept. 8, 1982,
96 Stat. 708.

In subsection (a), before paragraph (1), the words ‘‘On
and after the date the instrument of ratification is deposited by the United States in accordance with the
provisions of article VII of the Convention’’ are omitted as obsolete. The words ‘‘and regulations prescribed
under this chapter’’ are added for clarity. In paragraph
(1), the words ‘‘new . . . and existing containers which
are subject to this chapter’’ are omitted as obsolete.
Paragraphs (2) and (3) are substituted for ‘‘test, inspect,
and approve designs for new containers and new containers being manufactured’’ to eliminate unnecessary
words. In paragraph (4), before subparagraph (A), the
words ‘‘is subject to this chapter’’ are omitted as unnecessary. In subparagraph (A), the word ‘‘valid’’ is
omitted as unnecessary. In paragraph (5), the words ‘‘or
regulations prescribed under this chapter’’ are added
for consistency. In paragraph (6), the word ‘‘valid’’ is
omitted as unnecessary.
In subsection (b)(3), the words ‘‘appropriation for the
operating expenses of the Coast Guard’’ are substituted
for ‘‘appropriations bearing the cost thereof’’ for clarity.
In subsection (d)(2), the word ‘‘reasonably’’ is omitted
as unnecessary.
In subsection (e), the words ‘‘which first occurs’’ are
omitted as unnecessary. In paragraph (1), the words
‘‘the Secretary declares’’ are substituted for ‘‘is declared by the Secretary, or under regulations promulgated by the Secretary’’ to eliminate unnecessary
words.

§ 80506. Delegation of authority
(a) IN GENERAL.—The Secretary of the department in which the Coast Guard is operating may

§ 80507

TITLE 46—SHIPPING

delegate to any person, including a public or private agency or nonprofit organization, authority
to grant initial approval for containers and designs and to attach safety approval plates.
(b) REGULATIONS.—Before making a delegation
under this section, the Secretary shall prescribe
regulations establishing—
(1) criteria to be followed in selecting a person to whom authority is to be delegated;
(2) a detailed description of the duties and
powers to be carried out by the person to
whom authority is delegated, including the
records the person shall keep; and
(3) the review the Secretary will conduct to
decide whether the person is carrying out the
delegated duties and powers properly.
(c) INSPECTION OF RECORDS.—A person delegated authority under this section shall make
available to the Secretary for inspection, on request, records the person is required to keep.
(d) PENALTIES AND ORDERS.—A person delegated authority under this section may not—
(1) assess or collect, or attempt to assess or
collect, a penalty for violation of the Convention, this chapter, or an order issued by the
Secretary under this chapter; or
(2) issue or attempt to issue a detention or
other order.
(e) PUBLICATION.—The Secretary shall publish
in the Federal Register or other appropriate
publication—
(1) the name and address of each person to
whom authority is delegated;
(2) the duties and powers delegated; and
(3) the period of the delegation.
(f) REVOCATION.—The Secretary may revoke a
delegation of authority under this section at
any time.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1696.)
HISTORICAL AND REVISION NOTES
Revised
Section
80506 ..........

Source (U.S. Code)
46 App.:1503(c)(2),
(d).

Source (Statutes at Large)
Pub. L. 95–208, § 4(c)(2), (d),
Dec. 13, 1977, 91 Stat. 1477.

Subsections (a) and (f) are substituted for 46 App.
U.S.C. 1503(c)(2) and (d) (1st sentence) to improve the
organization of the section.
In subsection (b)(1), the words ‘‘person to whom authority is to be delegated’’ are substituted for ‘‘person,
public or private agency, or nonprofit organization as a
recipient of delegated functions under such subsection’’
to eliminate unnecessary words.
Subsection (b)(2) is substituted for ‘‘the manner in
which such recipient shall carry out such delegated
functions, including the records such recipient must
keep, and a detailed description of the exact functions
such recipient may exercise’’ to eliminate unnecessary
words.
Subsections (c)–(e) are substituted for 46 App. U.S.C.
1503(d) (last par.) to improve the organization of the
section and to eliminate unnecessary words.

§ 80507. Employee protection
(a) PROHIBITION.—A person may not discharge
or discriminate against an employee because the
employee has reported the existence of an unsafe container or a violation of this chapter or a
regulation prescribed under this chapter.
(b) COMPLAINTS.—An employee alleging to
have been discharged or discriminated against

Page 458

in violation of subsection (a) may file a complaint with the Secretary of Labor. The complaint must be filed within 60 days after the violation.
(c) ENFORCEMENT.—The Secretary of Labor
may investigate the complaint. If the Secretary
of Labor finds there has been a violation, the
Secretary of Labor may bring a civil action in
an appropriate district court of the United
States. The court has jurisdiction to restrain
violations of subsection (a) and order appropriate relief, including reinstatement of the employee to the employee’s former position with
back pay.
(d) NOTICE TO COMPLAINANT.—Within 30 days
after receiving a complaint under this section,
the Secretary of Labor shall notify the complainant of the intended action on the complaint.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1697.)
HISTORICAL AND REVISION NOTES
Revised
Section
80507 ..........

Source (U.S. Code)
46 App.:1506.

Source (Statutes at Large)
Pub. L. 95–208, § 7, Dec. 13,
1977, 91 Stat. 1479.

In subsection (a), the words ‘‘in any manner’’ and ‘‘to
the Secretary or his agents’’ are omitted as unnecessary. The words ‘‘or a regulation prescribed under this
chapter’’ are added for consistency.

§ 80508. Amendments to Convention
(a) PROPOSALS BY UNITED STATES.—The Secretary of State, with the concurrence of the Secretary of the department in which the Coast
Guard is operating, may propose amendments to
the Convention or request a conference for
amending the Convention as provided in article
IX of the Convention.
(b) PROPOSALS BY OTHER COUNTRIES.—An
amendment communicated to the United States
under article IX(2) of the Convention may be accepted for the United States by the President,
with the advice and consent of the Senate. The
President may declare that the United States
does not accept an amendment.
(c) AMENDMENTS TO ANNEXES.—
(1) IN GENERAL.—The Secretary of State,
with the concurrence of the Secretary of the
department in which the Coast Guard is operating—
(A) may propose amendments to the annexes to the Convention;
(B) may propose a conference for amending
annexes to the Convention; and
(C) shall consider and act on amendments
to the annexes to the Convention adopted by
the Maritime Safety Committee of the International Maritime Organization and communicated to the United States under article
X(2) of the Convention.
(2) ACTION FOLLOWING APPROVAL OR OBJECTION.—If a proposed amendment to an annex is
approved by the United States, the amendment shall enter into force as provided in article X of the Convention. If a proposed amendment is objected to, the Secretary of State
promptly shall communicate the objection as
provided in article X(3) of the Convention.
(d) APPOINTMENT OF ARBITRATOR.—The Secretary of State, with the concurrence of the Sec-

Page 459

retary of the department in which the Coast
Guard is operating, shall appoint an arbitrator
when one is required to resolve a dispute within
the meaning of article XIII of the Convention.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1697.)
HISTORICAL AND REVISION NOTES
Revised
Section
80508 ..........

§ 80509

TITLE 46—SHIPPING

Source (U.S. Code)
46 App.:1507.

Source (Statutes at Large)
Pub. L. 95–208, § 8, Dec. 13,
1977, 91 Stat. 1479.

§ 80509. Civil penalty
(a) IN GENERAL.—An owner, agent, or custodian who has been notified of an order issued
under section 80505 of this title and fails to take
reasonable and prompt action to prevent or stop
a container subject to the order from being
moved in violation of the order is liable to the
United States Government for a civil penalty of
not more than $5,000 for each container moved.
Each day the container remains in service while
the order is in effect is a separate violation.
(b) ASSESSMENT AND COLLECTION.—
(1) IN GENERAL.—After notice and an opportunity for a hearing, the Secretary of the department in which the Coast Guard is operating shall assess and collect any penalty under
this section.
(2) FACTORS TO CONSIDER.—In determining
the amount of the penalty, the Secretary shall

consider the gravity of the violation, the hazards involved, and the record of the person
charged with respect to violations of the Convention, this chapter, or regulations prescribed under this chapter.
(3) REMISSION, MITIGATION, OR COMPROMISE.—
The Secretary may remit, mitigate, or compromise a penalty under this section.
(4) ENFORCEMENT.—If a person fails to pay a
penalty under this section, the Secretary shall
refer the matter to the Attorney General for
collection in an appropriate district court of
the United States.
(Pub. L. 109–304, § 11, Oct. 6, 2006, 120 Stat. 1698.)
HISTORICAL AND REVISION NOTES
Revised
Section
80509 ..........

Source (U.S. Code)
46 App.:1505.

Source (Statutes at Large)
Pub. L. 95–208, § 6, Dec. 13,
1977, 91 Stat. 1478.

In subsection (a), the words ‘‘On and after the date
the instrument of ratification is deposited by the
United States in accordance with the provisions of article VII of the Convention’’ are omitted as obsolete. The
words ‘‘liable to the United States Government for a
civil penalty’’ are substituted for ‘‘subject to a civil
penalty’’ for consistency in the revised title.
In subsection (b)(2), the words ‘‘In determining the
amount of’’ are substituted for ‘‘In assessing, remitting, mitigating, or compromising’’ to eliminate unnecessary words.
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