46 U.S.C., Shipping

46 U.S.C.
United States Code, 2011 Edition
Title 46 - SHIPPING
Subtitle V - Merchant Marine
Part D - Promotional Programs
CHAPTER 553 - PASSENGER AND CARGO PREFERENCES
SUBCHAPTER I - GENERAL
Sec. 55305 - Cargoes procured, furnished, or financed by the United States Government
From the U.S. Government Printing Office, www.gpo.gov

§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 privately-owned 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
55305(a)

55305(b)
55305(c)
55305(d)

Source (U.S. Code)
46 App.:1241(b)(1) (2d, last
provisos).

Source (Statutes at Large)
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.

46 App.:1241(b)(1) (words
before 1st proviso).
46 App.:1241(b)(1) (1st
proviso).
46 App.:1241(b)(2).

In this section, the words “commercial vessels of the United States” are substituted for “United Statesflag 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 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.”