TITLE 46, APPENDIX—SHIPPING

This Appendix consists of sections of former Title 46 that are not included in Title 46, Shipping, as enacted by Pub. L. 98–89, subtitle B of title V of Pub. L. 99–509, section 6 of Pub. L. 100–424, and Pub. L. 100–710, and certain laws related to shipping that were enacted after Pub. L. 98–89. Sections from former Title 46 retain the same section numbers in this Appendix. For disposition of all sections of former Title 46, see Table at beginning of Title 46, Shipping.

Chap.
Sec.
1.
Administration of Shipping Laws
3
2.
Documentation, Recording, and Measurement
14
3.
Clearance and Entry
91
4.
Tonnage Duties
121
5.
Discriminating Duties and Reciprocal Privileges
141
6.
Regulation as to Vessels Carrying Steerage Passengers
163
8.
Limitation of Vessel Owner's Liability
181
12.
Regulation of Vessels in Domestic Commerce
251
13.
Passports and Papers of Vessels Engaged in Foreign Commerce
354
14.
Inspection of Steam Vessels
441
15.
Transportation of Passengers and Merchandise by Steam Vessels
466c
18.
Merchant Seamen
688
19.
Wrecks and Salvage
721
19A.
Admiralty and Maritime Jurisdiction
740
20.
Suits in Admiralty By or Against Vessels or Cargoes of United States
741
21.
Death on High Seas by Wrongful Act
761
22.
Suits in Admiralty Against United States for Damages Caused by Public Vessels or for Towage or Salvage Services
781
23.
Shipping Act
801
23A.
Intercoastal Shipping
843
24.
Merchant Marine Act, 1920
861
24A.
Merchant Marine Act, 1928
891
27.
Merchant Marine Act, 1936
1101
28.
Carriage of Goods by Sea
1300
34.
Safe Containers for International Cargo
1501
35.
Maritime Administration
1601
36.
International Ocean Commerce Transportation
1701
37.
International Maritime and Port Security
1801
38.
Maritime Drug Law Enforcement
1901
39.
Merchant Marine Decorations and Medals
2001

        

Cross References

See, also, Title 33, Navigation and Navigable Waters.

Arbitration of controversies arising out of maritime transactions, see Title 9, Arbitration.

Appendix Referred to in Other Sections

This appendix is referred to in title 42 section 9607.

CHAPTER 1—ADMINISTRATION OF SHIPPING LAWS

Sec.
3.
Measurement and numbering; tonnage tax.
9.
Delegation of classification functions.
(a),
(b) Repealed.
(c)
Report on delegation of classification functions.
(d)
Repealed.

        

Waiver of Compliance With Navigation and Inspection Laws; Termination Date

Act Dec. 27, 1950, ch. 1155, §§1, 2, 64 Stat. 1120, provided that: “The head of each department or agency responsible for the administration of the navigation and vessel-inspection laws is directed to waive compliance with such laws upon the request of the Secretary of Defense to the extent deemed necessary in the interest of national defense by the Secretary of Defense. The head of such department or agency is authorized to waive compliance with such laws to such extent and in such manner and upon such terms as he may prescribe, either upon his own initiative or upon the written recommendation of the head of any other Government agency, whenever he deems that such action is necessary in the interest of national defense.

Sec. 2. The authority granted by this Act shall terminate at such time as the Congress by concurrent resolution or the President may designate.”

Similar provisions were contained in acts Mar. 31, 1947, ch. 27, 61 Stat. 33; July 31, 1947, ch. 408, 61 Stat. 685; Feb. 27, 1948, ch. 78, §2, 62 Stat. 38; Feb. 28, 1949, ch. 12, 63 Stat. 9; June 29, 1949, ch. 281, §1, 63 Stat. 349; June 30, 1950, ch. 427, §4, 64 Stat. 309.

Transfer of Functions Relating to Shipping and Navigation

Bureau of Navigation created by act July 5, 1884. Act June 30, 1932, consolidated Bureau of Navigation with Steamboat Inspection Service to form a new bureau to be known as Bureau of Navigation and Steamboat Inspection, which name was changed to Bureau of Marine Inspection and Navigation by act May 27, 1936. Director of the Bureau of Marine Inspection and Navigation was designation given to chief of bureau by Secretary of Commerce under act June 30, 1932, §502(b). Bureau and office of its Director abolished by Reorg. Plan No. 3 of 1946, §104, set out below.


Reorg. Plan No. 3 of 1946, §§101 to 104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097, provided:

Section 101. Functions Transferred to the United States Coast Guard.—(a) There are hereby transferred to the Commandant of the Coast Guard those functions of the bureau, offices, and boards specified in the first sentence of section 104 of this plan, and of the Secretary of Commerce, which pertain to approval of plans for the construction, repair, and alteration of vessels; approval of materials, equipment, and appliances; classification of vessels; inspection of vessels and their equipment and appliances; issuance of certificates of inspection, and of permits indicating the approval of vessels for operations which may be hazardous to life or property; administration of load line requirements; enforcement of other provisions for the safety of life and property on vessels; licensing and certificating of officers, pilots, and seamen; suspension and revocation of licenses and certificates; investigation of marine casualties; enforcement of manning requirements, citizenship requirements, and requirements for the mustering and drilling of crews, control of logbooks; shipment, discharge, protection, and welfare of merchant seamen; enforcement of duties of shipowners and officers after accidents; promulgation and enforcement of rules for lights, signals, speed, steering, sailing, passing, anchorage, movement, and towlines of vessels and lights and signals on bridges; numbering of undocumented vessels; prescription and enforcement of regulations for outfitting and operation of motorboats; licensing of motorboat operators; regulation of regattas and marine parades; all other functions of such bureau, offices, and boards which are not specified in section 102 of this plan; and all other functions of the Secretary of Commerce pertaining to those functions of the agencies abolished under section 104 of this plan which are not specified in section 102 of this plan, including the remission and mitigation of fines, penalties, and forfeitures incurred under the laws governing these functions and those incurred under the act of December 17, 1941 (55 Stat. 808), as amended.

“(b) The functions relating to the award of numbers to undocumented vessels vested by law in the collectors of customs are hereby transferred to the Commandant of the Coast Guard.

Sec. 102. Functions Transferred to Bureau of Customs.—There are hereby transferred to the Commissioner of Customs those functions of the bureau, offices, and boards specified in the first sentence of section 104 of this plan, and of the Secretary of Commerce, which pertain to registry, enrollment, and licensing of vessels, including the issuance of commissions to yachts, the assignment of signal letters, and the preparation of all reports and publications in connection therewith; measurement of vessels, administration of tonnage duties, and collection of tolls; entry and clearance of vessels and aircraft, regulation of vessels in the coasting and fishing trades, and limitation of the use of foreign vessels in waters under the jurisdiction of the United States; recording of sales, conveyances, and mortgages of vessels; protection of steerage passengers; all other functions of such bureau, offices, and boards which were performed by the Bureau of Customs on behalf thereof immediately prior to the effective date of Executive Order No. 9083 of February 28, 1942 (7 F.R. 1609); and the power to remit and mitigate fines, penalties, and forfeitures incurred under the laws governing these functions.

Sec. 103. Powers of the Secretary of the Treasury.—The functions transferred by sections 101 and 102 of this plan may be performed through such officers and employees of the United States Coast Guard and the Bureau of Customs, respectively, as may be designated by the Commandant of the Coast Guard and the Commissioner of Customs, respectively, and shall be performed subject to the direction and control of the Secretary of the Treasury except as otherwise required by law with respect to the United States Coast Guard whenever it operates as a part of the Navy.

Sec. 104. Abolition of Agencies.—The Bureau of Marine Inspection and Navigation, the office of the director thereof, the offices of supervising inspectors, principal traveling inspectors, local inspectors, assistant inspectors, shipping commissioners, deputy shipping commissioners, and the board of supervising inspectors, the boards of local inspectors, the marine casualty investigation board, and the marine boards are hereby abolished. The Secretary of the Treasury shall provide for winding up those affairs of the said abolished agencies which are not otherwise disposed of herein.”

This Reorganization Plan continued on a permanent basis the temporary transfer of functions made during World War II by Ex. Ord. No. 9083, §§1 to 4, eff. Feb. 28, 1942, 7 F.R. 1609, formerly set out under section 601 of Title 50, Appendix, War and National Defense.

By Coast Guard General Order 2–46, July 16, 1946, 11 F.R. 7775, and Treas. Dept. Reg. 51491, July 16, 1946, 11 F.R. 7766, the Commandant of the Coast Guard and The Commissioner of Customs each provided that all orders, rules, regulations, permits or other privileges made, issued or granted in respect of all functions transferred to him by Reorg. Plan No. 3 of 1946, §§101–104, and in effect at the time of such transfer should continue in effect to the same extent as if such transfer had not occurred.

On the basis of 33 C.F.R. ch. I, and 46 C.F.R. ch. I, the Commandant of the Coast Guard appears to have assigned the functions transferred to him as follows:

 
Functions formerly performed by:Now assigned to:
Bureau of Marine Inspection and Navigation and its Director Commandant of the Coast Guard
Board of Supervising Inspectors Commandant of the Coast Guard
Supervising Inspector Coast Guard District Commander
Board of Local Inspectors Officer in Charge, Marine Inspection
Inspectors and Assistant Inspectors Marine Inspectors (or “inspectors”)

For investigation of Marine casualties and suspension and revocation of licenses and certificates, formerly performed by the Marine Casualty Investigation Board and Marine Boards, see note set out under section 239 of this title.

Memoranda of the Chief Counsel of the Coast Guard, July 7, 1947, Chief Counsel of the Bureau of Customs, July 14, 1947, and Chief Counsel of the Treasury, July 21, 1947, concurred in the view that the duties of collectors of customs were not affected by Reorg. Plan No. 3 of 1946, with the exception of those duties specified in section 101(b) of the Plan.

Certain Functions Formerly Performed by Bureau of Customs

The following is a statement relating to the transfer of certain functions from the Commissioner of Customs to the Commandant of the Coast Guard, appearing in 32 F.R. 7408, 7409, May 18, 1967:

On April 28, 1967, a memorandum of agreement was signed by the Commandant of the Coast Guard and the Commissioner of Customs which provided that—

1. Treasury Department Order No. 167–81 transferred from the Commissioner of Customs to the Commandant, U.S. Coast Guard, the functions pertaining to the admeasurement of vessels, the documentation of vessels, the publication of merchant vessel registers, the registration of stack insignia, and shoreside port security. Because of the transfer of the Coast Guard from the Treasury Department to the Department of Transportation and because of continuing efforts to reorganize and modernize the shipping laws of the United States now assembled in title 46, U.S. Code, with a view toward eventual codification, it is recognized that the laws and provisions of law that relate to the transferred functions should be identified.

2. It is therefore agreed that—

a. The following sections of the U.S. Code, 1964 edition, relate entirely to the transferred functions:

 
TitleChapterSections
46 1 2 (nothing in this section is considered vital or necessary to the authority to perform the functions pertaining to entry and clearance of vessels, collection of tonnage tax, or enforcement of the coastwise laws generally).
  2 12, 14–41, 43–56, 58, 61–63, 71, 72, 74, 75, 77, 81–83k.
  3 103, 105, 109.
  6 151–157, 159, 160.
  11 227, 236–238.
  12 252–255, 258–260, 263–265, 267–272, 275, 276, 279, 334.
  13 351–353.
  15 496.
  25 921–927, 941, 981–984.
  26 1011–1014.

b. Parts of the following sections of the U.S. Code, 1964 edition, relate to the transferred functions as indicated:

 
TitleChapterSections
46 1 3 (except as it relates to tonnage tax).
    4 (first two sentences).
  6 158 (second sentence).
  12 262 (second sentence).
  12 320 (as it relates to sections 45 and 77).
    321 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
    322 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
    323 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
    324 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
    326 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
    328 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
    331 (as it relates to measurement of tonnage, issuance or granting of certificates of registry, records or enrollments, recording of bills of sale, mortgages, hypothecations or conveyances, and the furnishing of certificates of title).
    333 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
    335 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
    336 (as it relates to sections 252–255, 258, 259, 262–273, 275–277, 279 and 280).
  24 881 (the second proviso).
  25 911(1), (2), (3), and (5).

c. The following sections and parts of sections of the U.S. Code 1964 edition, relate to functions transferred and to functions retained by Customs:

 
TitleChapterSections
19 3 261, 267.
  4 1451, 1524.
46 1 7, 4 (last sentence) 8.
  2 11, 13, 59, 60.
  6 158 (the second paragraph), 161, 162.
  11 221.
  12 251(a) (the first sentence), 266, 277, 278, 280, 292, 319, 325, 327, 332.
  14 404a.
  24 883 (the first and second provisos) 883a, 883b, 883–1.

d. The following sections of the U.S. Code, 1964 edition, relate to functions transferred and to functions administered under the Secretary of Commerce:

 
TitleChapterSections
46 23 838, 840.
    911(4) (pending transfer to the Department of Transportation under the provisions of Reorganization Plan No. 1–67).
50 12 198(a).

e. The following sections of the U.S. Code, 1964 edition, relate to functions transferred, to functions retained by Customs, and to functions administered under the Secretary of Commerce.

 
TitleChapterSections
46 23 801, 802, 803, 808.

3. The identification of statutes set forth above is for the information and guidance of the public. Nothing therein shall be deemed to have the effect of amending in any respect the provisions of Treasury Department Order No. 167–81 or the functions of any agency thereunder.

Transfer of Functions to Secretary of the Treasury

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Functions of Coast Guard and Commandant of Coast Guard excepted from transfer when Coast Guard is operating as part of Navy under sections 1 and 3 of Title 14, Coast Guard.

Administrative Delegation of Functions by Secretary of the Treasury

On July 31, 1950, Secretary of the Treasury issued Treasury Department Order No. 120 directing that officers, employees, and agencies of Department of the Treasury continue to perform functions they were authorized to perform prior to effective date of Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, and stipulating that authorized regulations and procedures in effect immediately prior to effective date of Plan continue in effect until changed by appropriate authority.

§3. Measurement and numbering; tonnage tax

The Commissioner of Customs shall be charged with the supervision of the laws relating to the admeasurement of vessels, and the assigning of signal letters thereto, and of designating their official number; and on all questions of interpretation growing out of the execution of the laws relating to these subjects, and relating to the collection of tonnage tax, and to the refund of such tax when collected erroneously or illegally, his decision shall be final.

(July 5, 1884, ch. 221, §3, 23 Stat. 119; June 30, 1932, ch. 314, §§501, 502(b), 47 Stat. 415; May 27, 1936, ch. 463, §1, 49 Stat. 1380; 1946 Reorg. Plan No. 3, §§101–104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097.)

Transfer of Functions

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Commissioner of Customs, referred to in text, is an officer of Department of the Treasury.

“Commissioner of Customs” substituted in text for “Director of the Bureau of Marine Inspection and Navigation” on authority of Reorg. Plan No. 3 of 1946, §§101–104, set out as a note preceding section 3 of this Appendix.

Previously, “Commissioner of Navigation” changed to “Director, Bureau of Navigation and Steamboat Inspection”, and then to “Director of the Bureau of Marine Inspection and Navigation” by acts June 30, 1932, and May 27, 1936. See note set out preceding section 3 of this Appendix.

Administrative Delegation of Functions by Secretary of the Treasury

Administrative delegation of functions by Secretary of the Treasury, see note set out preceding section 3 of this Appendix.

Cross References

Measurement of vessels, see section 14101 et seq. of Title 46, Shipping.

§9. Delegation of classification functions

(a), (b) Repealed. Pub. L. 98–89, §4(b), Aug. 26, 1983, 97 Stat. 600

(c) Report on delegation of classification functions

The Secretary of the department in which the Coast Guard is operating shall report to the Congress on the implementation of subsections (a) and (b) of this section within 6 months of December 29, 1981, and annually thereafter for 3 years. Such report shall include the views of the affected industry on the implementation of those subsections.

(d) Repealed. Pub. L. 98–89, §4(b), Aug. 26, 1983, 97 Stat. 600

(July 5, 1884, ch. 221, §8, as added Dec. 29, 1981, Pub. L. 97–136, §9, 95 Stat. 1706; amended Oct. 15, 1982, Pub. L. 97–322, title I, §109, 96 Stat. 1584; Aug. 26, 1983, Pub. L. 98–89, §4(b), 97 Stat. 600.)

Amendments

1983—Subsecs. (a), (b), (d). Pub. L. 98–89 struck out subsecs. (a), (b), and (d). See section 3316 of Title 46, Shipping.

1982—Subsec. (d). Pub. L. 97–322 added subsec. (d).

CHAPTER 2—DOCUMENTATION, RECORDING, AND MEASUREMENT

SUBCHAPTER I—GENERAL PROVISIONS

Sec.
14.
Wrecked vessels.
42.
Oath on entry as to ownership.
57.
Production of certificate on entry.
59.
Penalty for neglect by officers.

        

Cross References

Corporation meeting certain conditions deemed citizen for purposes of the laws relating to documentation of vessels, see section 883–1 of this Appendix.

SUBCHAPTER I—GENERAL PROVISIONS

§14. Wrecked vessels

The Secretary of Transportation may issue a certificate of documentation with a coastwise endorsement for any vessel wrecked on the coasts of the United States or her possessions or adjacent waters, when purchased by a citizen or citizens of the United States and thereupon repaired in a shipyard in the United States or her possessions, if it shall be proved to the satisfaction of the Secretary of Transportation, if he deems it necessary, through a board of three appraisers appointed by him, that the said repairs put upon such vessels 1 are equal to three times the appraised salved value of the vessel: Provided, That the expense of the appraisal provided for shall be borne by the owner of the vessel: Provided further, That if any of the material matters of fact sworn to or represented by the owner, or at his instance, to obtain the register of any vessel are not true, there shall be a forfeiture to the United States of the vessel in respect to which the oath shall have been made, together with tackle, apparel, and furniture thereof.

(R.S. §4136; Feb. 24, 1915, ch. 57, 38 Stat. 812; Dec. 8, 1993, Pub. L. 103–182, title VI, §686(a)(4), 107 Stat. 2220.)

Codification

R.S. §4136 derived from acts Dec. 23, 1852, ch. 4, 10 Stat. 149; July 23, 1866, ch. 213, 14 Stat. 212.

R.S. §4136 was repealed by act Feb. 22, 1906, ch. 500, 34 Stat. 17, and was reenacted and revised by act Feb. 24, 1915.

Amendments

1993—Pub. L. 103–182 substituted “The Secretary of Transportation may issue a certificate of documentation with a coastwise endorsement” for “The Secretary of Commerce may issue a register or enrollment” and “Secretary of Transportation,” for “Secretary of Commerce,”.

Section Referred to in Other Sections

This section is referred to in title 46 sections 3703a, 12106, 12107, 12108.

1 So in original. Probably should be “vessel”.

§42. Oath on entry as to ownership

Upon the entry of every vessel of the United States from any foreign port, if the same shall be at the port at which the owner or any of the part owners reside, such owner or part owner shall make oath that the register of such vessel contains the name or names of all the persons who are then owners of the vessel; or if any part of such vessel has been sold or transferred since the granting of such register, that such is the case, and that no foreign subject or citizen has, to the best of his knowledge and belief, any share, by way of trust, confidence, or otherwise, in such vessel. If the owner or any part owner does not reside at the port at which such vessel enters, the master shall make oath to the like effect. If the owner, or part owner, where there is one, or the master, where there is no owner, refuses so to swear, such vessel shall not be entitled to the privileges of a vessel of the United States.

(R.S. §4173.)

Codification

R.S. §4173 derived from act Dec. 31, 1792, ch. 1, §17, 1 Stat. 295.

§57. Production of certificate on entry

The master or other person having the command or charge of any vessel, recorded in pursuance of title 48 of the Revised Statutes, shall, on entry of such vessel, produce the certificate of such record to the collector of the district where she is so entered; and in default thereof the vessel shall not be entitled to the privileges of a recorded vessel.

(R.S. §4184.)

References in Text

Title 48 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 48 of the Revised Statutes, consisting of R.S. §§4131 to 4305. For complete classification of R.S. §§4131 to 4305 to the Code, see Tables.

Codification

R.S. §4184 derived from act Dec. 31, 1792, ch. 1, §24, 1 Stat. 297.

Transfer of Functions

All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

§59. Penalty for neglect by officers

If any person authorized and required by title 48 of the Revised Statutes to perform, as an officer, any act or thing, willfully neglects to do or perform the same according to the true intent and meaning of title 48 of the Revised Statutes, he shall, if not subject to the penalty and disqualification prescribed in section 4187 of the Revised Statutes, be punishable by a fine of $500 for the first offense, and by a like fine for the second offense, and shall thenceforth be rendered incapable of holding any office of trust or profit under the United States.

(R.S. §4188.)

References in Text

Title 48 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 48 of the Revised Statutes, consisting of R.S. §§4131 to 4305. For complete classification of R.S. §§4131 to 4305 to the Code, see Tables.

Section 4187 of the Revised Statutes, referred to in text, was classified to section 58 of former Title 46, Shipping, and was repealed by Pub. L. 96–594, title I, §127, Dec. 24, 1980, 94 Stat. 3459.

Codification

R.S. §4188 derived from act Dec. 31, 1792, ch. 1, §26, 1 Stat. 298.

CHAPTER 3—CLEARANCE AND ENTRY

Sec.
91.
Clearance; vessels.
(a)
When required; vessels of United States.
(b)
When required; other vessels.
(c)
Regulations.
97.
State inspection laws.
98.
Conveyance of bullion, coin, notes, or bonds for United States.
100.
Payment of fees on vessels outward bound.
104.
Reciprocal exemption of foreign yachts from charges and tonnage taxes; licenses.
111.
Documented vessels with coastwise, Great Lakes endorsement.

        

Cross References

Provisions concerning custody and storage of vessels, vehicles, merchandise and baggage seized under laws relating to entry or clearance of vessels, see section 1605 of Title 19, Customs Duties.

§91. Clearance; vessels

(a) When required; vessels of United States

Except as otherwise provided by law, any vessel of the United States shall obtain clearance from the Customs Service 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 bonded merchandise or 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) When required; other vessels

Except as otherwise provided by law, any vessel that is not a vessel of the United States shall obtain clearance from the Customs Service 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 of the Treasury 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 the Customs Service to grant clearance for a vessel under this section 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 of the Treasury conditioned upon 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 of the Treasury; and

(3) authorize the Customs Service to permit clearance of any vessel to be obtained at a place other than a designated port of entry, under such conditions as he may prescribe.

(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; Dec. 8, 1993, Pub. L. 103–182, title VI, §686(b), 107 Stat. 2221.)

Codification

R.S. §4197 derived from act Mar. 2, 1799, ch. 22, §93, 1 Stat. 698.

Amendments

1993—Pub. L. 103–182 amended section generally, substituting present provisions for provisions which directed master of any vessel bound to a foreign port to deliver to district collector a manifest of all cargo on board, subject to financial penalties for delivery of false manifest and detainment of vessel until penalty is paid, but authorizing Secretary of Commerce, in interest of expediting commerce, to make regulations permitting master to file incomplete manifest and grant vessel clearance upon filing a bond and making assurance that a completed manifest will be filed not later than the fourth business day after clearance of the vessel, with financial penalties and possible suit resulting from failure to file completed manifest when due.

1954—Act Sept. 1, 1954, exempted undocumented pleasure vessels of the United States from clearance requirements.

1938—Act June 16, 1938, inserted proviso and all that follows.

1935—Act Aug. 5, 1935, substituted second sentence for “If any vessel bound to a foreign port departs on her voyage to such foreign port without delivering such manifest and obtaining a clearance, as required, the master or other person having the charge or command of such vessel shall be liable to a penalty of $500 for every such offense.”

Construction With Other Laws

Section 3 of act June 16, 1938, provided that the amendments to this section by section 1 of the act, should not affect any other existing law.

Cross References

Bond to deliver cargo at destination named in clearance and to prohibit its use in aiding or comforting persons in insurrection against United States, see section 225 of Title 50, War and National Defense.

Refusing clearance to vessels with suspected cargoes intended for port in possession or under control of insurgents against United States, see section 224 of Title 50.

Vessels arriving at ports of United States, manifest, requirement, form, and contents, see section 1431 et seq., of Title 19, Customs Duties.

Section Referred to in Other Sections

This section is referred to in sections 817d, 817e, 876, 1710a of this Appendix; title 16 sections 1826a, 4711; title 18 section 965; title 19 sections 1431, 1436, 1441; title 33 sections 1232, 1321, 1517, 1904, 1908, 2072, 2236, 2605, 2716; title 42 section 9608; title 46 sections 2110, 3718, 5113; title 50 App. section 13.

§97. State inspection laws

The collectors and other officers of the customs shall pay due regard to the inspection laws of the States in which they may respectively act, in such manner that no vessel having on board goods liable to inspection shall be cleared until the master, or other proper person, shall have produced such certificate that all such goods have been duly inspected, as the laws of the respective States may require to be produced to collectors or other officers of the customs.

(R.S. §4202.)

Codification

R.S. §4202 derived from act Mar. 2, 1799, ch. 22, §93, 1 Stat. 699.

Transfer of Functions

All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

§98. Conveyance of bullion, coin, notes, or bonds for United States

All vessels belonging to citizens of the United States, and bound from any port in the United States to any other port therein, or to any foreign port, or from any foreign port to any port in the United States, shall, before clearance, receive on board all such bullion, coin, United States notes and bonds and other securities, as the Government of the United States or any department thereof, or any minister, consul, vice consul, or other agent of the United States abroad, shall offer, and shall securely convey and promptly deliver the same to the proper authorities or consignees, on arriving at the port of destination; and shall receive for such service such reasonable compensation as may be allowed to other carriers in the ordinary transactions of business.

(R.S. §4204; Apr. 5, 1906, ch. 1366, §3, 34 Stat. 100.)

Codification

R.S. §4204 derived from act July 4, 1864, ch. 249, §10, 13 Stat. 392.

Reference to “or commercial” before “or other agent” was omitted in view of the abolition of the grade of commercial agent by act Apr. 5, 1906.

§100. Payment of fees on vessels outward bound

Previous to a clearance being granted to any vessel, outward bound, the legal fees which shall have accrued on such vessel shall be paid at the offices where such fees are respectively payable; and receipts for the same shall be produced to the collector or other officer whose duty it may be to grant clearances, before a clearance is granted.

(R.S. §4206.)

Codification

R.S. §4206 derived from acts Mar. 3, 1797, ch. 9, §5, 1 Stat. 503; Mar. 2, 1799, ch. 22, §93, 1 Stat. 699.

Transfer of Functions

All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

Cross References

Establishment and collection of fees for certain services to vessels, see section 2110 of Title 46, Shipping.

§104. Reciprocal exemption of foreign yachts from charges and tonnage taxes; licenses

Whenever it shall be made to appear to the satisfaction of the President of the United States that yachts used and employed exclusively as pleasure vessels and belonging to any resident of the United States are allowed to arrive at and depart from any foreign port and to cruise in the waters of such port without entering or clearing at the customhouse thereof and without the payment of any charges for entering or clearing, dues, duty per ton, tonnage taxes or charges for cruising licenses, the Commissioner of Customs may authorize and direct the customs authorities at the various ports of entry of the United States to allow yachts from such foreign port used and employed exclusively as pleasure vessels to arrive at and depart from any port of the United States and to cruise in waters of the United States without the payment of any charges for entering or clearing, dues, duty per ton, or tonnage taxes, but the Commissioner of Customs may, in his discretion, direct that such foreign yachts shall be required to obtain licenses to cruise, in a form prescribed by him, before they shall be allowed under the provisions of this section to cruise in waters of the United States. Such licenses shall be issued without cost to such yachts and shall prescribe such limitations as to length of time, direction, and place of cruising and action, and such other particulars as the Commissioner of Customs may deem proper.

(May 28, 1908, ch. 212, §5, 35 Stat. 425; Aug. 5, 1909, ch. 6, §37, 36 Stat. 112; Mar. 4, 1913, ch. 141, §1, 37 Stat. 736; 1946 Reorg. Plan No. 3, §§101–104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097; June 26, 1948, ch. 673, 62 Stat. 1051.)

Codification

This section was not amended or repealed by section 36 of the Payne-Aldrich Tariff Act of Aug. 5, 1909, ch. 6, 36 Stat. 111, relating to tonnage duties, but so much of it as related to yachts built outside the United States and owned by citizens of the United States was repealed by section 37 of that act, which was itself repealed by the Underwood Tariff Act of Oct. 13, 1913, ch. 16, §IV, S, 38 Stat. 201.

In text, the words “and subports” and “or subport” following “various ports” and “arrive at and depart from any port” respectively, were omitted.

By subdivision II of the President's plan of reorganization of the Custom Service under the grant of authority contained in act Aug. 24, 1912, ch. 355, §1, 37 Stat. 434, subports of entry not therein designated ports of entry were abolished and the use of the term “subport of entry” was discontinued.

Amendments

1948—Act June 26, 1948, removed the discrimination against yachts which do not belong to “regularly organized yacht clubs”.

Transfer of Functions

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Commissioner of Customs, referred to in text, is an officer of Department of the Treasury.

“Commissioner of Customs” substituted in text for “Secretary of Commerce” on authority of Reorg. Plan No. 3 of 1946, §§101–104, set out as a note preceding section 3 of this Appendix.

Upon incorporation into the Code, “Secretary of Commerce” substituted for “Secretary of Commerce and Labor” to conform to act Mar. 4, 1913.

Delegation of Functions

For delegation to Secretary of the Treasury of authority vested in President by this section, see Ex. Ord. No. 10289, eff. Sept. 17, 1951, 16 F.R. 9499, set out as a note under section 301 of Title 3, The President.

Administrative Delegation of Functions by Secretary of the Treasury

Administrative delegation of functions by Secretary of the Treasury, see note set out preceding section 3 of this Appendix.

Cross References

Provisions relating to tonnage duties, see section 121 et seq. of this Appendix.

§111. Documented vessels with coastwise, Great Lakes endorsement

Documented vessels with a coastwise, Great Lakes endorsement, departing from or arriving at a port in one district to or from a port in another district, and also touching at intermediate foreign ports, shall not thereby become liable to the payment of entry and clearance fees, as if from or to foreign ports.

(R.S. §2793; Sept. 25, 1941, ch. 423, 55 Stat. 733; Dec. 8, 1993, Pub. L. 103–182, title VI, §686(a)(1), 107 Stat. 2220.)

Codification

R.S. §2793 derived from J. Res. Feb. 10, 1871, No. 27, §2, 16 Stat. 595.

Provisions of this section are also classified to section 288 of Title 19, Customs Duties.

Provision of R.S. §2793 respecting tonnage duties is classified to section 123 of this Appendix.

Amendments

1993—Pub. L. 103–182 substituted “Documented vessels with a coastwise, Great Lakes endorsement,” for “Enrolled or licensed vessels engaged in the foreign and coasting trade on the northern, northeastern, and northwestern frontiers of the United States,” and a period for “; but such vessel shall, notwithstanding, be required to enter and clear; except that when such vessels are on such voyages on the Great Lakes and touch at foreign ports for the purpose of taking on bunker fuel only, they may be exempted from entering and clearing under such rules and regulations as the Secretary of Commerce may prescribe, notwithstanding any other provisions of law: Provided, That this exception shall not apply to such vessels if, while at such foreign port, they land or take on board any passengers, or any merchandise other than bunker fuel, receive orders, discharge any seamen by mutual consent, or engage any seamen to replace those discharged by mutual consent, or transact any other business save that of taking on bunker fuel.”

1941—Act Sept. 25, 1941, inserted exception and proviso at end of section.

Cross References

Vessels not required to make entry, see section 1441 of Title 19, Customs Duties.

CHAPTER 4—TONNAGE DUTIES

Sec.
121.
Amount of tonnage duties.
122.
Coasting and fishing vessels.
123.
Documented vessels with coastwise, Great Lakes endorsement.
124.
Passenger vessels trading between ports of United States and foreign ports.
125.
Vessels making daily trips on interior waters.
128.
Light money.
129.
Exemption of unregistered vessels owned by citizens.
132.
Vessels not entering by sea.
133.
Hospital ships in time of war.
134.
Designation by President of hospital ships exempted.
135.
Rights under treaties preserved.

        

§121. Amount of tonnage duties

Upon vessels which shall be entered in the United States from any foreign port or place there shall be paid duties as follows: On vessels built within the United States but belonging wholly or in part to subjects of foreign powers, at the rate of thirty cents per ton; on other vessels not of the United States, at the rate of fifty cents per ton, and any vessel any officer of which shall not be a citizen of the United States shall pay a tax of fifty cents per ton.

A tonnage duty of 9 cents per ton, not to exceed in the aggregate 45 cents per ton in any one year, for fiscal years 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998,1 and 2 cents per ton, not to exceed in the aggregate 10 cents per ton in any one year, for each fiscal year thereafter is imposed at each entry on all vessels which shall be entered in any port of the United States from any foreign port or place in North America, Central America, the West India Islands, the Bahama Islands, the Bermuda Islands, or the coast of South America bordering on the Caribbean Sea, or Newfoundland, and on all vessels (except vessels of the United States, recreational vessels, and barges, as those terms are defined in section 2101 of title 46) that depart a United States port or place and return to the same port or place without being entered in the United States from another port or place; and a duty of 27 cents per ton, not to exceed $1.35 per ton per annum, for fiscal years 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998,1 and 6 cents per ton, not to exceed 30 cents per ton per annum, for each fiscal year thereafter is imposed at each entry on all vessels which shall be entered in any port of the United States from any other foreign port. However, neither duty shall be imposed on vessels in distress or not engaged in trade.

Upon every vessel not of the United States, which shall be entered in one district from another district, having on board goods, wares, or merchandise taken in one district to be delivered in another district, duties shall be paid at the rate of 50 cents per ton: Provided, That no such duty shall be required where a vessel owned by citizens of the United States, but not a vessel of the United States, after entering an American port, shall, before leaving the same, be registered as a vessel of the United States. On all foreign vessels which shall be entered in the United States from any foreign port or place, to and with which vessels of the United States are not ordinarily permitted to enter and trade, there shall be paid a duty at the rate of $2 per ton; and none of the duties on tonnage above mentioned shall be levied on the vessels of any foreign nation if the President of the United States shall be satisfied that the discriminating or countervailing duties of such foreign nations, so far as they operate to the disadvantage of the United States, have been abolished. Any rights or privileges acquired by any foreign nation under the laws and treaties of the United States relative to the duty of tonnage on vessels shall not be impaired; and any vessel any officer of which shall not be a citizen of the United States shall pay a tax of 50 cents per ton.

(R.S. §4219; Feb. 27, 1877, ch. 69, §1, 19 Stat. 250; June 26, 1884, ch. 121, §14, 23 Stat. 57; Apr. 4, 1888, ch. 61, §1, 25 Stat. 80; Aug. 5, 1909, ch. 6, §36, 36 Stat. 111; Mar. 4, 1915, ch. 171, §1, 38 Stat. 1193; Nov. 5, 1990, Pub. L. 101–508, title X, §10402(a), 104 Stat. 1388–398; Aug. 10, 1993, Pub. L. 103–66, title IX, §9001(a), (c)(1), 107 Stat. 402.)

Codification

R.S. §4219 derived from acts July 20, 1790, ch. 30, §1, 1 Stat. 135; Apr. 27, 1816, ch. 107, §6, 3 Stat. 314; Jan. 14, 1817, ch. 3, §1, 3 Stat. 344; Mar. 1, 1817, ch. 31, §6, 3 Stat. 352; Mar. 3, 1817, ch. 50, 3 Stat. 369; May 31, 1830, ch. 219, §1, 4 Stat. 425; July 14, 1862, ch. 163, §15, 12 Stat. 558; June 28, 1864, ch. 170, 13 Stat. 201; Mar. 3, 1865, ch. 80, §4, 13 Stat. 493.

The first and third paragraphs of this section, with the exception of the proviso in the third paragraph, are from R.S. §4219.

A portion of that section omitted here provided that, in addition to the tonnage duty thereby imposed there should be paid a tax, at the rate of thirty cents per ton, on vessels entered at any custom house from any foreign port or place.

It was probably omitted as superseded and repealed by act June 26, 1884, as amended by acts June 19, 1886, ch. 421, §11, 24 Stat. 81; Apr. 4, 1888, and Aug. 5, 1909.

Another portion of the original text, concerning the impairment of rights and privileges of foreign nations under laws and treaties was probably omitted as sufficiently covered by the similar provision near the end of the section.

The second paragraph of this section is from act Aug. 5, 1909, §36. Portions of that paragraph omitted here, fixed the time of its taking effect, repealed R.S. §4232, act June 19, 1886, ch. 421, §§11 and 12, 24 Stat. 81, and so much of R.S. §4219 as conflicted therewith, and provided that it should not be construed to amend or repeal R.S. §2792, as amended, act May 28, 1908, ch. 212, §5, 35 Stat. 425, or R.S. §2793. That paragraph was expressly excepted from repeal by Underwood Tariff Act Oct. 13, 1913, ch. 16, §IV, S, 38 Stat. 201.

The proviso in the third paragraph of this section is based on act Mar. 4, 1915. Other provisions of that act are classified to section 128 of this Appendix, and sections 128 and 131 of Title 19, Customs Duties.

So much of act June 19, 1886, ch. 421, §11, 24 Stat. 81, as exempted any yacht built outside the United States, and owned, chartered or used by a citizen of the United States, from the payment of tonnage taxes, was repealed by act Feb. 5, 1897, ch. 167, §2, 29 Stat. 511. Act June 19, 1886, having been repealed as above stated section 2 of act Feb. 5, 1897, ch. 167, is no longer operative.

Section 12 of act June 19, 1886, which was repealed by the Payne-Aldrich Tariff Act of Aug. 5, 1909, §36, directed the President to cause the Governments of foreign countries, which, at any of their ports, imposed on American vessels a tonnage tax or light house dues, etc., to be informed of the provisions of section 11, and invited to co-operate with the Government of the United States in abolishing light house dues, etc.

R.S. §4223, provided that the tonnage duty imposed on all vessels engaged in foreign commerce should be levied but once within a year, and that when paid no further tonnage tax should be collected within one year from the date of such payment, not being applicable, however, to foreign vessels entered in the United States from any foreign port, to and with which vessels of the United States were not ordinarily permitted to enter and trade.

R.S. §4224, provided that vessels paying tonnage duties once a year should pay them at their first clearance from or entry at, according to priority, a custom house in the United States in each calendar year, but that it should not prevent customs officers from collecting such tonnage duty at the entry of vessels at their respective custom houses during the calendar year if the same had not previously been paid for such year.

Both these sections were repealed by act June 26, 1884, as amended by act June 19, 1886, ch. 421, §11, 24 Stat. 81.

Act June 19, 1878, ch. 318, 20 Stat. 171, amended R.S. §2931, by providing that it should not apply to cases of the payment of tonnage tax on vessels where the Secretary of the Treasury and the Attorney General were satisfied that the exaction of the tax was in contravention of treaty provisions. R.S. §2931, which provided for an appeal to the Secretary of the Treasury from the decision of the collector of customs as to the rate and amount of tonnage duties, etc., was repealed by act June 10, 1890, ch. 407, §29, 26 Stat. 141. Act June 19, 1878, further provided that the Secretary of the Treasury might draw his warrant for the refund of taxes so illegally exacted, as provided for by R.S. §30121/2. R.S. §30121/2, was also repealed by act June 10, 1890, §29. By the repeal of R.S. §§2931, 30121/2, act June 19, 1878, ch. 318, became inoperative.

Act Feb. 10, 1900, ch. 15, §2, 31 Stat. 27, authorized the Secretary of the Treasury to refund tonnage taxes and light dues imposed on vessels owned by citizens of Cuba entering ports of the United States since Apr. 11, 1899, which had been in excess of the taxes prescribed by act June 19, 1886, ch. 421, §11, 24 Stat. 81. It was doubtless omitted from the code as executed.

R.S. §4232, repealed by the same section, provided that mail steamships employed in the mail-service between the United States and Brazil, should be exempt from all port charges and customs dues at the port of departure and arrival in the United States, if and so long as a similar immunity from port charges and custom-house charges was granted by the government of Brazil.

Section 37 of act Aug. 5, 1909, which provided for a tonnage tax on foreign built yachts, pleasure boats or vessels, not used or intended to be used for trade, owned, or chartered for more than six months by citizens of the United States, or, in lieu thereof, an ad valorem duty, and entitled such yachts, etc., upon payment thereof to all the privileges, subjected them to all the requirements prescribed by R.S. §§4214, 4215, 4217, 4218, and acts amendatory thereof, in the same manner as if they had been built in the United States, subjected such yachts, etc., to tonnage duty and light money only in the same manner as if they had been built in the United States, repealed so much of act May 28, 1908, ch. 212, §5, 35 Stat. 425, as related to yachts built outside the United States and owned by citizens of the United States, and provided that the section should not apply to foreign built vessels admitted to American registry, was repealed by the Underwood Tariff Act of Oct. 13, 1913, ch. 16, §IV, S, 38 Stat. 201.

Act June 5, 1920, ch. 250, §34, 41 Stat. 1007, directed the President to give notice to terminate provisions of treaties or conventions restricting the right of the United States to impose discriminating customs duties and tonnage dues. It was doubtless omitted as temporary and executed.

Amendments

1993—Second par. Pub. L. 103–66, §9001(c)(1), made technical correction to directory language of Pub. L. 101–508. See 1990 Amendment note below.

Pub. L. 103–66, §9001(a), substituted “1995, 1996, 1997, 1998,” for “and 1995,” in two places, “port or place; and a duty” for “port or place, and a duty”, and “port. However, neither duty shall be imposed on vessels in distress or not engaged in trade” for “port, not, however, to include vessels in distress or not engaged in trade”.

1990—Second par. Pub. L. 101–508, as amended by Pub. L. 103–66, §9001(c)(1), substituted “9 cents per ton, not to exceed in the aggregate 45 cents per ton in any one year, for fiscal years 1991, 1992, 1993, 1994, and 1995, and 2 cents per ton, not to exceed in the aggregate 10 cents per ton in any one year, for each fiscal year thereafter” for “two cents per ton, not to exceed in the aggregate ten cents per ton in any one year,”, inserted “and on all vessels (except vessels of the United States, recreational vessels, and barges, as those terms are defined in section 2101 of title 46) that depart a United States port or place and return to the same port or place without being entered in the United States from another port or place,” after “Newfoundland,”, and substituted “27 cents per ton, not to exceed $1.35 per ton per annum, for fiscal years 1991, 1992, 1993, 1994, and 1995, and 6 cents per ton, not to exceed 30 cents per ton per annum, for each fiscal year thereafter” for “six cents per ton, not to exceed thirty cents per ton per annum,”.

Effective Date of 1993 Amendment

Section 9001(c)(2) of Pub. L. 103–66 provided that: “The amendment made by paragraph (1) [amending this section] shall be effective on and after November 5, 1990.”

Offsetting Receipts

Section 10402(c) of Pub. L. 101–508 provided that: “Increased tonnage charges collected as a result of the amendments made by subsection (a) [amending 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.”

Nonliability of Customs Collectors and Vessels Before October 1, 1940

Act May 16, 1947, ch. 71, 61 Stat. 97, made collectors of customs and vessels themselves not liable for failure to collect special tonnage duties or light money under this section or section 128 of this Appendix in connection with the entry prior to Oct. 1, 1940, of any foreign vessel from a foreign port.

Cross References

Hospital ships in time of war, see section 133 of this Appendix.

Suspension of operation of section by President, see section 141 of this Appendix.

Vessels evading provisions relating to transportation between ports in the United States by foreign vessels, tonnage duties on, see section 1588 of Title 19, Customs Duties.

Vessels not entering by sea to be exempt from tonnage duty of 2 cents per ton, not to exceed in the aggregate 10 cents per ton in any one year, see section 132 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 132, 141 of this Appendix.

1 So in original. Probably should be “and 1998,”.

§122. Coasting and fishing vessels

No vessel belonging to any citizen of the United States, trading from one port within the United States to another port within the United States, or employed in the bank, whale, or other fisheries, shall be subject to tonnage tax or duty, if such vessel be licensed, registered, or enrolled.

(R.S. §4220.)

Codification

R.S. §4220 derived from acts July 14, 1870, ch. 255, §25, 16 Stat. 269; Apr. 18, 1874, ch. 110, 18 Stat. 31.

Cross References

Documentation of vessels, see section 12101 et seq. of Title 46, Shipping.

Regulation of vessels in domestic commerce, see section 251 et seq. of this Appendix.

§123. Documented vessels with coastwise, Great Lakes endorsement

Documented vessels with a coastwise, Great Lakes endorsement, departing from or arriving at a port in one district to or from a port in another district, and also touching at intermediate foreign ports, shall not thereby become liable to the payment of tonnage tax, as if from or to foreign ports.

(R.S. §2793; Sept. 25, 1941, ch. 423, 55 Stat. 733; Dec. 8, 1993, Pub. L. 103–182, title VI, §686(a)(1), 107 Stat. 2220.)

Codification

R.S. §2793 derived from J. Res. Feb. 10, 1871, No. 27, §2, 16 Stat. 595.

Provision of R.S. §2793 respecting payment of entry and clearance fee is classified to section 111 of this Appendix, and section 288 of Title 19, Customs Duties.

Amendments

1993—Pub. L. 103–182 substituted “Documented vessels with a coastwise, Great Lakes endorsement,” for “Enrolled or licensed vessels engaged in the foreign and coasting trade on the northern, northeastern, and northwestern frontiers of the United States,” and a period for “; but such vessel shall, notwithstanding, be required to enter and clear; except that when such vessels are on such voyages on the Great Lakes and touch at foreign ports for the purpose of taking on bunker fuel only, they may be exempted from entering and clearing under such rules and regulations as the Secretary of Commerce may prescribe, notwithstanding any other provisions of law: Provided, That this exception shall not apply to such vessels if, while at such foreign port, they land or take on board any passengers, or any merchandise other than bunker fuel, receive orders, discharge any seamen by mutual consent, or engage any seamen to replace those discharged by mutual consent, or transact any other business save that of taking on bunker fuel.”

1941—Act Sept. 25, 1941, inserted exception and proviso at end of section.

Cross References

Vessels not required to make entry, see section 1441 of Title 19, Customs Duties.

§124. Passenger vessels trading between ports of United States and foreign ports

Any passenger vessel engaged triweekly or oftener in trade between ports of the United States and foreign ports shall be exempt from tonnage taxes while such service triweekly or oftener is maintained.

(R.S. §2792; May 28, 1908, ch. 212, §1, 35 Stat. 424.)

Codification

R.S. §2792 derived from act June 4, 1872, ch. 280, 17 Stat. 214.

Provisions of R.S. §2792 as originally enacted were classified to section 110 of former Title 46, Shipping, and, in part, to section 289 of Title 19, Customs Duties.

The provision of this section which was added to R.S. §2792 by act May 28, 1908, was also classified, in part, to section 112 of former Title 46 and section 289 of Title 19.

§125. Vessels making daily trips on interior waters

In cases of vessels making regular daily trips between any port of the United States and any port in the Dominion of Canada, wholly upon interior waters not navigable to the ocean, no tonnage fees shall be charged against such vessel by the officers of the United States, except upon the first clearing of such vessel in each year.

(R.S. §4221.)

Codification

R.S. §4221 derived from act Mar. 3, 1869, ch. 125, §3, 15 Stat. 322.

Provision of R.S. §4221 respecting clearance fees was classified to section 113 of former Title 46, Shipping.

§128. Light money

A duty of 50 cents per ton, to be denominated “light money”, shall be levied and collected on all vessels not of the United States which may enter the ports of the United States. Such light money shall be levied and collected in the same manner and under the same regulations as the tonnage duties: Provided, That no such duty shall be required where a vessel owned by citizens of the United States, but not a vessel of the United States, after entering an American port, shall, before leaving the same, be registered as a vessel of the United States.

(R.S. §4225; Mar. 4, 1915, ch. 171, §1, 38 Stat. 1193.)

Codification

R.S. §4225 derived from act Mar. 27, 1804, ch. 57, §6, 2 Stat. 300.

The proviso of this section is from act Mar. 4, 1915. Other provisions of the act are classified to section 121 of this Appendix and sections 128 and 131 of Title 19, Customs Duties.

Section Referred to in Other Sections

This section is referred to in section 129 of this Appendix.

§129. Exemption of unregistered vessels owned by citizens

Section 128 of this Appendix shall not be deemed to operate upon unregistered vessels, owned by citizens of the United States, and carrying regular documents, issued from a customhouse of the United States, proving the vessel to be American property. Upon the entry of every such vessel from any foreign port, if the same shall be at the port at which the owner or any of the part owners reside, such owner or part owners shall make oath that the document possessed by such vessel contains the name or names of all the persons who are then the owners of the vessel; or if any part of such vessel has been sold or transferred since the date of such document, that such is the case, and that no foreign subject or citizen has, to the best of his knowledge and belief, any share, by way of trust, confidence, or otherwise, in such vessel. 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. If the owner or part owner, where there is one, or the master, where there is no owner, shall refuse to so swear, such vessel shall not be entitled to the privileges granted by this section.

(R.S. §4226.)

Codification

R.S. §4226 derived from act Mar. 3, 1805, ch. 40, 2 Stat. 339.

As originally enacted, this section contained a reference to vessels carrying sea letters. The use of such documents was discontinued by Presidential proclamation on Apr. 10, 1815.

§132. Vessels not entering by sea

Vessels entering otherwise than by sea from a foreign port at which tonnage or lighthouse dues or other equivalent tax or taxes are not imposed on vessels of the United States shall be exempt from the tonnage duty of 9 cents per ton, not to exceed in the aggregate 45 cents per ton in any one year, for fiscal years 1991, 1992, 1993, 1994, 1995, 1996, 1997, and 1998, and 2 cents per ton, not to exceed in the aggregate 10 cents per ton in any one year, for each fiscal year thereafter, prescribed by section 121 of this Appendix.

(Mar. 8, 1910, ch. 86, 36 Stat. 234; Nov. 5, 1990, Pub. L. 101–508, title X, §10402(b), 104 Stat. 1388–399; Aug. 10, 1993, Pub. L. 103–66, title IX, §9001(b), 107 Stat. 402.)

Amendments

1993—Pub. L. 103–66 substituted “1995, 1996, 1997, and 1998,” for “and 1995,”.

1990—Pub. L. 101–508 substituted “9 cents per ton, not to exceed in the aggregate 45 cents per ton in any one year, for fiscal years 1991, 1992, 1993, 1994, and 1995, and 2 cents per ton, not to exceed in the aggregate 10 cents per ton in any one year, for each fiscal year thereafter” for “two cents per ton, not to exceed in the aggregate ten cents per ton in any one year”.

§133. Hospital ships in time of war

Hospital ships, concerning which the conditions set forth in articles 1, 2, and 3 of the convention concluded at The Hague on July 29, 1899, for the adaptation to maritime warfare of the principles of the Geneva convention of August 22, 1864, are fulfilled, shall, in the ports of the United States and the possessions thereof, be exempted, in time of war, from all dues and taxes imposed on vessels by the laws of the United States, and from all pilotage charges.

(Mar. 24, 1908, ch. 96, §1, 35 Stat. 46.)

Section Referred to in Other Sections

This section is referred to in section 134 of this Appendix.

§134. Designation by President of hospital ships exempted

The President of the United States shall by proclamation name the hospital ships to which section 133 of this Appendix shall apply, and shall indicate the time when the exemptions provided for shall begin and end.

(Mar. 24, 1908, ch. 96, §2, 35 Stat. 46.)

Delegation of Functions

For delegation to Secretary of the Treasury of authority vested in President by this section, see section 1(e) of Ex. Ord. No. 10289, eff. Sept. 17, 1951, 16 F.R. 9499, set out as a note under section 301 of Title 3, The President.

§135. Rights under treaties preserved

Nothing contained in title 48 of the Revised Statutes shall be deemed in anywise to impair any rights and privileges which have been or may be acquired by any foreign nation under the laws and treaties of the United States relative to the duty on tonnage of vessels, or any other duty on vessels.

(R.S. §4227.)

References in Text

Title 48 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 48 of the Revised Statutes, consisting of R.S. §§4131 to 4305. For complete classification of R.S. §§4131 to 4305 to the Code, see Tables.

Codification

R.S. §4227 derived from acts Apr. 27, 1816, ch. 107, §6, 3 Stat. 314; Jan. 14, 1817, ch. 3, §1, 3 Stat. 344; July 14, 1862, ch. 163, §15, 12 Stat. 558.

CHAPTER 5—DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

Sec.
141.
Suspension by President.
142.
Retaliatory suspension of commercial privileges to foreign vessels.
143.
Retaliation on denial of rights to United States vessels in British North America.
144.
Suspension of free passage through Saint Marys Falls Canal; tolls.
145.
Collection of tolls.
146.
Discriminating duty on merchandise imported in foreign vessels; exception.

        

§141. Suspension by President

Upon satisfactory proof being given to the President, by the government of any foreign nation, that no discriminating duties of tonnage or imposts are imposed or levied in the ports of such nation upon vessels wholly belonging to citizens of the United States, or upon the produce, manufactures, or merchandise imported in the same from the United States or from any foreign country, the President may issue his proclamation, declaring that the foreign discriminating duties of tonnage and impost within the United States are suspended and discontinued, so far as respects the vessels of such foreign nation, and the produce, manufactures, or merchandise imported into the United States from such foreign nation, or from any other foreign country; the suspension to take effect from the time of such notification being given to the President, and to continue so long as the reciprocal exemption of vessels, belonging to citizens of the United States, and their cargoes, shall be continued, and no longer: Provided, That the President is authorized to suspend in part the operation of section 121 of this Appendix and section 2502 of the Revised Statutes so that foreign vessels from a country imposing partial discriminating tonnage duties upon American vessels, or partial discriminating import duties upon American merchandise, may enjoy in our ports the identical privileges which the same class of American vessels and merchandise may enjoy in said foreign country.

(R.S. §4228; July 24, 1897, ch. 13, 30 Stat. 214.)

References in Text

Section 2502 of the Revised Statutes, referred to in text, which imposed a discriminating duty upon merchandise imported in foreign vessels, was not classified to the Code and was repealed by act Mar. 3, 1933, ch. 202, §1, 47 Stat. 1430. See section 146 of this Appendix.

Codification

R.S. §4228 derived from acts May 24, 1828, ch. 111, §1, 4 Stat. 308; May 31, 1830, ch. 219, §2, 4 Stat. 425; July 13, 1832, ch. 207, §3, 4 Stat. 579.

Act July 24, 1897, added proviso.

Delegation of Functions

For delegation to Secretary of the Treasury of authority vested in President by this section, see section 1(f) of Ex. Ord. No. 10289, eff. Sept. 17, 1951, 16 F.R. 9499, set out as a note under section 301 of Title 3, The President.

Nations Whose Vessels are Exempted

Nations whose vessels are exempted by treaties or Presidential proclamations from the payment of any higher tonnage duties than are applicable to vessels of the United States, and are exempted from the payment of light money, see 19 C.F.R. §4.22.

Proc. No. 2992. Korea

Proc. No. 2992, Oct. 13, 1952, 17 F.R. 9150, 67 Stat. c15, provided:

NOW, THEREFORE, I, HARRY S. TRUMAN, President of the United States of America, by virtue of the authority vested in me by the above-quoted statutory provisions [this section] do hereby declare and proclaim that the foreign discriminating duties of tonnage and imposts within the United States are suspended and discontinued so far as respects the vessels of Korea and the produce, manufactures, or merchandise imported in said vessels into the United States from Korea or from any other foreign country; the suspension to take effect from October 1, 1952, and to continue so long as the reciprocal exemption of vessels belonging to citizens of the United States and their cargoes shall be continued, and no longer.

Cross References

Discriminating duty on goods imported in foreign vessels, exception, see section 128 of Title 19, Customs Duties.

§142. Retaliatory suspension of commercial privileges to foreign vessels

Whenever any foreign country whose vessels have been placed on the same footing in the ports of the United States as American vessels (the coastwise trade excepted) shall deny to any vessels of the United States any of the commercial privileges accorded to national vessels in the harbors, ports, or waters of such foreign country, the President, on receiving satisfactory information of the continuance of such discriminations against any vessels of the United States, is authorized to issue his proclamation excluding, on and after such time as he may indicate, 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, and suspending such concessions previously granted to the vessels of such country; 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; and 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.

(June 19, 1886, ch. 421, §17, 24 Stat. 82.)

Cross References

Principals, see section 2 of Title 18, Crimes and Criminal Procedure.

§143. Retaliation on denial of rights to United States vessels in British North America

Whenever the President of the United States shall be satisfied that American fishing vessels or American fishermen, visiting or being in the waters or at any ports or places of the British dominions of North America, are or then lately have been denied or abridged in the enjoyment of any rights secured to them by treaty or law, or are or then lately have been unjustly vexed or harassed in the enjoyment of such rights, or subjected to unreasonable restrictions, regulations, or requirements in respect of such rights; or otherwise unjustly vexed or harassed in said waters, ports, or places; or whenever the President of the United States shall be satisfied that any such fishing vessels or fishermen, having a permit under the laws of the United States to touch and trade at any port or ports, place or places, in the British dominions of North America, are or then lately have been denied the privilege of entering such port or ports, place or places in the same manner and under the same regulations as may exist therein applicable to trading vessels of the most favored nation, or shall be unjustly vexed or harassed, in respect thereof, or otherwise be unjustly vexed or harassed therein, or shall be prevented from purchasing such supplies as may there be lawfully sold to trading vessels of the most favored nation; or whenever the President of the United States shall be satisfied that any other vessels of the United States, their masters, or crews, so arriving at or being in such British waters or ports or places of the British dominions of North America, are or then lately have been denied any of the privileges therein accorded to the vessels, their masters, or crews, of the most favored nation, or unjustly vexed or harassed in respect of the same, or unjustly vexed or harassed therein by the authorities thereof, 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 (with such exceptions in regard to vessels in distress, stress of weather, or needing supplies as to the President shall seem proper), 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. 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. Every violation of any such proclamation, or any part thereof, is declared 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.

(Mar. 3, 1887, ch. 339, 24 Stat. 475.)

§144. Suspension of free passage through Saint Marys Falls Canal; tolls

With a view of securing reciprocal advantages for the citizens, ports, and vessels of the United States, whenever and so often as the President shall be satisfied that the passage through any canal or lock connected with the navigation of the Saint Lawrence River, the Great Lakes, or the water ways connecting the same, of any vessels of the United States, or of cargoes or passengers in transit to any port of the United States, is prohibited or is made difficult or burdensome by the imposition of tolls or otherwise which, in view of the free passage through the Saint Marys Falls Canal, permitted to vessels of all nations, he shall deem to be reciprocally unjust and unreasonable, he shall have the power, and it shall be his duty, to suspend by proclamation to that effect, for such time and to such extent (including absolute prohibition) as he shall deem just, the right of free passage through the Saint Marys Falls Canal, so far as it relates to vessels owned by the subjects of the Government so discriminating against the citizens, ports, or vessels of the United States, or to any cargoes, portions of cargoes, or passengers in transit to the ports of the Government making such discrimination, whether carried in vessels of the United States or of other nations.

In such case and during such suspension tolls shall be levied, collected, and paid as follows, to wit: Upon freight of whatever kind or description, not to exceed $2 per ton; upon passengers, not to exceed $5 each, as shall be from time to time determined by the President: Provided, That no tolls shall be charged or collected upon freight or passengers carried to and landed at Ogdensburg, or any port west of Ogdensburg, and south of a line drawn from the northern boundary of the State of New York through the Saint Lawrence River, the Great Lakes, and their connecting channels to the northern boundary of the State of Minnesota.

(July 26, 1892, ch. 248, §1, 27 Stat. 267.)

Section Referred to in Other Sections

This section is referred to in section 145 of this Appendix.

§145. Collection of tolls

All tolls charged under the provisions of section 144 of this Appendix shall be collected under such regulations as shall be prescribed by the Commissioner of Customs, who may require the master of each vessel to furnish a sworn statement of the amount and kind of cargo and the number of passengers carried and the destination of the same, and such proof of the actual delivery of such cargo or passengers at some port or place within the limits above named as he shall deem satisfactory; and until such proof is furnished such freight and passengers may be considered to have been landed at some port or place outside of those limits, and the amount of tolls which would have accrued if they had been so delivered shall constitute a lien which may be enforced against the vessel in default wherever and whenever found in the waters of the United States.

(July 26, 1892, ch. 248, §2, 27 Stat. 268; Feb. 14, 1903, ch. 552, §10, 32 Stat. 829; Mar. 4, 1913, ch. 141, §1, 37 Stat. 736; 1946 Reorg. Plan No. 3, §§101–104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097.)

Transfer of Functions

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Commissioner of Customs, referred to in text, is an officer of Department of the Treasury.

“Commissioner of Customs” substituted in text for “Secretary of Commerce” on authority of Reorg. Plan No. 3 of 1946, §§101–104, set out as a note preceding section 3 of this Appendix.

Upon incorporation into the Code, “Secretary of Commerce” substituted for “Secretary of the Treasury” to conform to act Feb. 14, 1903, which transferred certain powers and duties of Secretary of the Treasury relating to merchant vessels and yachts to Secretary of Commerce and Labor and act Mar. 4, 1913, which changed designation of Secretary of Commerce and Labor to Secretary of Commerce.

Administrative Delegation of Functions by Secretary of the Treasury

Administrative delegation of functions by Secretary of the Treasury, see note set out preceding section 3 of this Appendix.

§146. Discriminating duty on merchandise imported in foreign vessels; exception

A discriminating duty of 10 per centum ad valorem, in addition to the duties imposed by law, shall be levied, collected, and paid on all goods, wares, or merchandise which shall be imported in vessels not of the United States; 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 any 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.

(Oct. 3, 1913, ch. 16, §IV, J, subsec. 1, 38 Stat. 195; Mar. 4, 1915, ch. 171, §1, 38 Stat. 1193; June 17, 1930, ch. 497, title IV, §651(d)(1), 46 Stat. 763; Dec. 8, 1993, Pub. L. 103–182, title VI, §689(a)(1), 107 Stat. 2222.)

Codification

The provisions incorporated in this section, with portions of the original text omitted here, are classified to section 128 of Title 19, Customs Duties.

Section is a composite of acts Oct. 3, 1913, ch. 16, and Mar. 4, 1915, ch. 171, as amended. The words “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” are based on the nonspecific amendment of act Oct. 3, 1913, by act Mar. 4, 1915, as amended.

Subsec. 1 of act Oct. 3, 1913, §IV, par. J, provided also for a discriminating duty on goods, wares and merchandise produced or manufactured in a foreign country not contiguous to the United States but coming into the United States from such contiguous country. That provision is classified to section 128 of Title 19.

R.S. §2502 imposed a discriminating duty upon merchandise imported in foreign vessels. It was superseded by subsequent similar provisions in successive tariff acts, the latest of which is classified to this section.

Act June 5, 1920, ch. 250, §34, 41 Stat. 1007, declaring it to be the judgment of Congress that provisions of treaties restricting the right of the United States to impose discriminating customs duties on imports entering the United States in foreign vessels and vessels of the United States, and discriminatory tonnage dues on foreign vessels, and on vessels of the United States, should be terminated, and directing the President to give notice to terminate them, was omitted.

Amendments

1993—Pub. L. 103–182, which directed the amendment of act Oct. 3, 1913, by substituting “documented under chapter 121 of title 46,” for “registered as a vessel of the United States,”, was executed by making the substitution in that part of this section comprised of provisions of act Mar. 4, 1915. See Codification note above.

Amendment or Repeal; Exception

Section is expressly excepted from repeal or amendment by the Tariff Act of 1930 (act June 17, 1930, ch. 497, title IV, 46 Stat. 763) by section 651(d) of that act which is classified to section 1651(d) of Title 19, Customs Duties.

Cross References

Authority to suspend operation of section, see section 141 of this Appendix.

CHAPTER 6—REGULATION AS TO VESSELS CARRYING STEERAGE PASSENGERS

Sec.
163.
Regulations as to boarding arriving vessels before inspection.

        

§163. Regulations as to boarding arriving vessels before inspection

The Commissioner of Customs is authorized and directed to prescribe from time to time and enforce regulations governing the boarding of vessels arriving at the seaports of the United States, before such vessels have been properly inspected and placed in security, and for that purpose to employ any of the officers of the United States Customs Service. Each person violating such regulations shall be subject to a penalty of not more than $100 or imprisonment not to exceed six months, or both, in the discretion of the court. This section shall be construed as supplementary to section 9 of act August 2, 1882 (22 Stat. 189), and section 2279 of title 18.

(Mar. 31, 1900, ch. 120, §§1–3, 31 Stat. 58; Feb. 14, 1903, ch. 552, §10, 32 Stat. 829; Mar. 4, 1913, ch. 141, §1, 37 Stat. 736; 1946 Reorg. Plan No. 3, §101, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097.)

References in Text

Section 9 of act August 2, 1882, referred to in text, was classified to section 158 of former Title 46, Shipping, and was repealed by Pub. L. 98–89, §4(b), Aug. 26, 1983, 97 Stat. 600.

Codification

“Section 2279 of title 18” substituted in text for “section 4606 of the Revised Statutes” on authority of act June 25, 1948, ch. 645, 62 Stat. 683, which enacted Title 18, Crimes and Criminal Procedure.

Effective Date

Section 4 of act Mar. 31, 1900, provided: “That this Act [enacting this section] shall take effect thirty days after its passage.”

Transfer of Functions

“United States Customs Service” substituted in text for “Bureau of Customs” pursuant to Treasury Department Order 165–23, Apr. 4, 1973, eff. Aug. 1, 1973, 38 F.R. 13037. See, also, section 308 of Title 31, Money and Finance.

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Commissioner of Customs, referred to in text, is an officer of Department of the Treasury.

“Commissioner of Customs” substituted in text for “Secretary of Commerce” and “the Bureau of Customs” for “that department” on authority of sections 101 to 104 of Reorg. Plan No. 3 of 1946, set out as a note preceding section 3 of this Appendix.

Upon incorporation into the Code, “Secretary of Commerce” substituted for “Secretary of the Treasury,” to conform to act Feb. 14, 1903, which transferred certain powers and duties of Secretary of the Treasury relating to merchant vessels and yachts to Secretary of Commerce and Labor and act Mar. 4, 1913, which changed designation of Secretary of Commerce and Labor to Secretary of Commerce.

Administrative Delegation of Functions by Secretary of the Treasury

Administrative delegation of functions by Secretary of the Treasury, see note set out preceding section 3 of this Appendix.

CHAPTER 8—LIMITATION OF VESSEL OWNER'S LIABILITY

Sec.
181.
Liability of masters as carriers.
182.
Loss by fire.
183.
Amount of liability.
(a)
Privity or knowledge of owner; limitation.
(b)
Seagoing vessels; losses not covered in full.
(c)
Tonnage of seagoing vessels.
(d)
Loss of life or bodily injury arising on distinct occasions.
(e)
Privity imputed to owner.
(f)
“Seagoing vessel” defined.
183b.
Stipulations limiting time for filing claims and commencing suit.
(a)
Time periods.
(b)
Claims not barred for failure to give notice.
(c)
Mental incompetents; minors; wrongful death actions.
183c.
Stipulations limiting liability for negligence invalid.
184.
Apportionment of compensation.
185.
Petition for limitation of liability; deposit of value of interest in court; transfer of interest to trustee.
186.
Charterer may be deemed owner.
187.
Remedies reserved.
188.
Limitation of liability of owners applied to all vessels.
189.
Limitation of liability of owners of vessels for debts.
190.
Stipulations relieving from liability for negligence.
191.
Stipulations relieving from exercise of due diligence in equipping vessels.
192.
Limitation of liability for errors of navigation, dangers of sea and acts of God.
193.
Bills of lading to be issued; contents.
194.
Penalties; liens; recovery.
195.
Certain provisions inapplicable to transportation of live animals.
196.
Certain laws unaffected.

        

Cross References

Liability with respect to carriage of goods by sea, see section 1300 et seq. of this Appendix.

§181. Liability of masters as carriers

If any shipper of platina, gold, gold dust, silver, bullion, or other precious metals, coins, jewelry, bills of any bank or public body, diamonds, or other precious stones, or any gold or silver in a manufactured or unmanufactured state, watches, clocks, or timepieces of any description, trinkets, orders, notes, or securities for payment of money, stamps, maps, writings, title deeds, printings, engravings, pictures, gold or silver plate or plated articles, glass, china, silks in a manufactured or unmanufactured state, and whether wrought up or not wrought up with any other material, furs, or lace, or any of them, contained in any parcel, or package, or trunk, shall lade the same as freight or baggage, on any vessel, without at the time of such lading giving to the master, clerk, agent, or owner of such vessel receiving the same a written notice of the true character and value thereof, and having the same entered on the bill of lading therefor, the master and owner of such vessel shall not be liable as carriers thereof in any form or manner; nor shall any such master or owner be liable for any such goods beyond the value and according to the character thereof so notified and entered.

(R.S. §4281.)

Codification

R.S. §4281 derived from act Feb. 28, 1871, ch. 100, §69, 16 Stat. 458.

Short Title

Sections 190 to 196 of this Appendix are popularly known as the “Harter Act”.

Cross References

Amount of liability when nature and value of goods not declared, see section 1304 of this Appendix.

Sections unaffected by sections 190 to 195 of this Appendix, see section 196 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 196, 1308 of this Appendix; title 16 section 1443.

§182. Loss by fire

No owner of any vessel shall be liable to answer for or make good to any person any loss or damage, which may happen to any merchandise whatsoever, which shall be shipped, taken in, or put on board any such vessel, by reason or by means of any fire happening to or on board the vessel, unless such fire is caused by the design or neglect of such owner.

(R.S. §4282.)

Codification

R.S. §4282 derived from act Mar. 3, 1851, ch. 43, §1, 9 Stat. 635.

Cross References

Liability of carrier and ship for loss from fire, see section 1304 of this Appendix.

Remedies reserved, see section 187 of this Appendix.

Section unaffected by sections 190 to 195 of this Appendix, see section 196 of this Appendix.

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 187, 188, 196, 1308 of this Appendix; title 16 section 1443; title 33 section 2718; title 42 section 9607.

§183. Amount of liability

(a) Privity or knowledge of owner; limitation

The liability of the owner of any vessel, whether American or foreign, for any embezzlement, loss, or destruction by any person of any property, goods, or merchandise shipped or put on board of such vessel, or for any loss, damage, or injury by collision, or for any act, matter, or thing, loss, damage, or forfeiture, done, occasioned, or incurred, without the privity or knowledge of such owner or owners, shall not, except in the cases provided for in subsection (b) of this section, exceed the amount or value of the interest of such owner in such vessel, and her freight then pending.

(b) Seagoing vessels; losses not covered in full

In the case of any seagoing vessel, if the amount of the owner's liability as limited under subsection (a) of this section 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 is less than $420 per ton of such vessel's tonnage, such portion shall be increased to an amount equal to $420 per ton, to be available only for the payment of losses in respect of loss of life or bodily injury. If such portion so increased is insufficient to pay such losses in full, they shall be paid therefrom in proportion to their respective amounts.

(c) Tonnage of seagoing vessels

For the purposes of this section the tonnage of a seagoing steam or motor vessel shall be her gross tonnage without deduction on account of engine room, and the tonnage of a seagoing sailing vessel shall be her registered tonnage: Provided, That there shall not be included in such tonnage any space occupied by seamen or apprentices and appropriated to their use.

(d) Loss of life or bodily injury arising on distinct occasions

The owner of any such seagoing vessel shall be liable in respect of loss of life or bodily injury arising on distinct occasions to the same extent as if no other loss of life or bodily injury had arisen.

(e) Privity imputed to owner

In respect of loss of life or bodily injury the privity or knowledge of the master of a seagoing vessel or of the superintendent or managing agent of the owner thereof, at or prior to the commencement of each voyage, shall be deemed conclusively the privity or knowledge of the owner of such vessel.

(f) “Seagoing vessel” defined

As used in subsections (b), (c), (d), and (e) of this section and in section 183b of this Appendix, the term “seagoing vessel” shall not include pleasure yachts, tugs, towboats, towing vessels, tank vessels, fishing vessels or their tenders, self-propelled lighters, nondescript self-propelled vessels, canal boats, scows, car floats, barges, lighters, or nondescript non-self-propelled vessels, even though the same may be seagoing vessels within the meaning of such term as used in section 188 of this Appendix, as amended.

(R.S. §4283; Aug. 29, 1935, ch. 804, §1, 49 Stat. 960; June 5, 1936, ch. 521, §1, 49 Stat. 1479; Oct. 19, 1984, Pub. L. 98–498, title II, §213(a), 98 Stat. 2306.)

Codification

R.S. §4283 derived from act Mar. 3, 1851, ch. 43, §3, 9 Stat. 635.

Amendments

1984—Subsec. (b). Pub. L. 98–498 substituted “$420” for “$60” in two places.

1936—Act June 5, 1936, amended section generally, provided, that when owner's limited liability is insufficient to pay losses in full and the portion applicable to payment for loss of life or injury is less than $60 per ton, such portion be increased to $60 per ton, and if increased portion is insufficient, proportionate payments be made, inserted provision imputing privity or knowledge of master, superintendent, or managing agent to owner, construed “seagoing vessel” for purposes of section 183b of this Appendix as well as this section, and designated the amended provisions of section as subsecs. (a) to (f).

1935—Act Aug. 29, 1935, inserted provisions fixing total liability of owner of sea-going vessel, whether American or foreign, other than tugs, barges, or fishing vessels, for entire loss of life or injuries caused without his fault or privity at not less than $60 for each ton of such vessel or the amount of value of his interest in such vessel and her freight then pending, if the latter be a greater amount; fixed tonnage of steam or motor vessel as her gross tonnage, without deduction for engine room, and tonnage of a sailing vessel as her registered tonnage, not including space for seamen; and imposed on owners, liability for losses of life or injury on distinct occasions to the same extent as if no other loss or injury had arisen.

Effective Date of 1984 Amendment

Section 213(b) of Pub. L. 98–498 provided that: “The amendment made by subsection (a) [amending this section] shall apply to incidents occurring after the date of enactment of this Act [Oct. 19, 1984].”

Cross References

Apportionment of compensation, see section 184 of this Appendix.

Individual liability of shipowner, see section 189 of this Appendix.

Liability of master and owners for damage to passengers, see section 491 of this Appendix.

Longshore and harbor workers’ compensation actions, amount of recovery not limited by this section, see section 948 of Title 33, Navigation and Navigable Waters.

Petition for limitation of liability, see section 185 of this Appendix.

Remedies reserved, see section 187 of this Appendix.

Section unaffected by sections 190 to 195 of this Appendix, see section 196 of this Appendix.

Surrender of vessel, see section 185 of this Appendix.

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 185, 187, 188, 196, 1308 of this Appendix; title 16 section 1443; title 33 section 2718; title 42 section 9607; title 46 section 14305.

§183b. Stipulations limiting time for filing claims and commencing suit

(a) Time periods

It shall be unlawful for the manager, agent, master, or owner of any sea-going vessel (other than tugs, barges, fishing vessels and their tenders) transporting passengers or merchandise or property from or between ports of the United States and foreign ports to provide by rule, contract, regulation, or otherwise a shorter period for giving notice of, or filing claims for loss of life or bodily injury, than six months, and for the institution of suits on such claims, than one year, such period for institution of suits to be computed from the day when the death or injury occurred.

(b) Claims not barred for failure to give notice

Failure to give such notice, where lawfully prescribed in such contract, shall not bar any such claim—

(1) If the owner or master of the vessel or his agent had knowledge of the injury, damage, or loss and the court determines that the owner has not been prejudiced by the failure to give such notice; nor

(2) If the court excuses such failure on the ground that for some satisfactory reason such notice could not be given; nor

(3) Unless objection to such failure is raised by the owner.

(c) Mental incompetents; minors; wrongful death actions

If a person who is entitled to recover on any such claim is mentally incompetent or a minor, or if the action is one for wrongful death, any lawful limitation of time prescribed in such contract shall not be applicable so long as no legal representative has been appointed for such incompetent, minor, or decedent's estate, but shall be applicable from the date of the appointment of such legal representative: Provided, however, That such appointment be made within three years after the date of such death or injury.

(R.S. §4283A, as added Aug. 29, 1935, ch. 804, §3, 49 Stat. 960.)

Cross References

Seagoing vessel defined for purposes of this section, see section 183 of this Appendix.

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 183, 188, 1308 of this Appendix; title 16 section 1443.

§183c. Stipulations limiting liability for negligence invalid

It shall be unlawful for the manager, agent, master, or owner of any vessel transporting passengers between ports of the United States or between any such port and a foreign port to insert in any rule, regulation, contract, or agreement any provision or limitation (1) purporting, in the event of loss of life or bodily injury arising from the negligence or fault of such owner or his servants, to relieve such owner, master, or agent from liability, or from liability beyond any stipulated amount, for such loss or injury, or (2) purporting in such event to lessen, weaken, or avoid the right of any claimant to a trial by court of competent jurisdiction on the question of liability for such loss or injury, or the measure of damages therefor. All such provisions or limitations contained in any such rule, regulation, contract, or agreement are declared to be against public policy and shall be null and void and of no effect.

(R.S. §4283B, as added June 5, 1936, ch. 521, §2, 49 Stat. 1480; amended Nov. 4, 1992, Pub. L. 102–587, title III, §3006, 106 Stat. 5068; Dec. 20, 1993, Pub. L. 103–206, title III, §309, 107 Stat. 2425.)

Amendments

1993—Cl. (2). Pub. L. 103–206 substituted “court” for “any court”.

1992—Cl. (2). Pub. L. 102–587 inserted “any” before “court”.

Cross References

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 188, 1308 of this Appendix; title 16 section 1443.

§184. Apportionment of compensation

Whenever any such embezzlement, loss, or destruction is suffered by several freighters or owners of goods, wares, merchandise, or any property whatever, on the same voyage, and the whole value of the vessel, and her freight for the voyage, is not sufficient to make compensation to each of them, they shall receive compensation from the owner of the vessel in proportion to their respective losses; and for that purpose the freighters and owners of the property, and the owner of the vessel, or any of them, may take the appropriate proceedings in any court, for the purpose of apportioning the sum for which the owner of the vessel may be liable among the parties entitled thereto.

(R.S. §4284; Feb. 27, 1877, ch. 69, §1, 19 Stat. 251.)

Codification

R.S. §4284 derived from act Mar. 3, 1851, ch. 43, §4, 9 Stat. 635.

Act Feb. 27, 1877, amended R.S. §4284 by substituting the word “owners” for “owner” in the expression “freighters and owners of the property”.

Cross References

Remedies reserved, see section 187 of this Appendix.

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 187, 188, 1308 of this Appendix; title 16 section 1443; title 33 section 2718; title 42 section 9607.

§185. Petition for limitation of liability; deposit of value of interest in court; transfer of interest to trustee

The vessel owner, within six months after a claimant shall have given to or filed with such owner written notice of claim, may petition a district court of the United States of competent jurisdiction for limitation of liability within the provisions of chapter 6 of title 48 of the Revised Statutes and the owner (a) shall deposit with the court, for the benefit of claimants, a sum equal to the amount or value of the interest of such owner in the vessel and freight, or approved security therefor, and in addition such sums, or approved security therefor, as the court may from time to time fix as necessary to carry out the provisions of section 183 of this Appendix, or (b) at his option shall transfer, for the benefit of claimants, to a trustee to be appointed by the court his interest in the vessel and freight, together with such sums, or approved security therefor, as the court may from time to time fix as necessary to carry out the provisions of section 183 of this Appendix. Upon compliance with the requirements of this section all claims and proceedings against the owner with respect to the matter in question shall cease.

(R.S. §4285; June 5, 1936, ch. 521, §3, 49 Stat. 1480.)

References in Text

Chapter 6 of title 48 of the Revised Statutes, referred to in text, was in the original “this chapter, as amended”, meaning chapter 6 of title 48 of the Revised Statutes, consisting of R.S. §§4252 to 4289. For complete classification of R.S. §§4252 to 4289 to the Code, see Tables.

Codification

R.S. §4285 derived from act Mar. 3, 1851, ch. 43, §4, 9 Stat. 635.

Amendments

1936—Act June 5, 1936, substituted provisions of this section for former provisions which provided that it should be deemed a sufficient compliance on the part of an owner with the requirements of title 48 of the Revised Statutes relating to his liability for embezzlement, loss, or destruction of any property, goods, or merchandise, if he transferred his interest in such vessel and freight, for the benefit of claimants, to a trustee appointed by court, after which all claims against the owner should cease.

Cross References

Remedies reserved, see section 187 of this Appendix.

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 187, 188, 1308 of this Appendix; title 16 section 1443; title 33 section 2718; title 42 section 9607.

§186. Charterer may be deemed owner

The charterer of any vessel, in case he shall man, victual, and navigate such vessel at his own expense, or by his own procurement, shall be deemed the owner of such vessel 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; and such vessel, when so chartered, shall be liable in the same manner as if navigated by the owner thereof.

(R.S. §4286.)

References in Text

Title 48 of the Revised Statutes, referred to in text, was in the original “this Title” meaning title 48 of the Revised Statutes, consisting of R.S. §§4131 to 4305. For complete classification of R.S. §§4131 to 4305 to the Code, see Tables.

Codification

R.S. §4286 derived from act Mar. 3, 1851, ch. 43, §5, 9 Stat. 636.

Cross References

Remedies reserved, see section 187 of this Appendix.

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 187, 188, 1308 of this Appendix; title 16 section 1443; title 33 section 2718; title 42 section 9607.

§187. Remedies reserved

Nothing in sections 182, 183, and 184 to 186 of this Appendix shall be construed to take away or affect the remedy to which any party may be entitled, against the master, officers, or seamen, for or on account of any embezzlement, injury, loss, or destruction of merchandise, or property, put on board any vessel, or on account of any negligence, fraud, or other malversation of such master, officers, or seamen, respectively, nor to lessen or take away any responsibility to which any master or seaman of any vessel may by law be liable, notwithstanding such master or seaman may be an owner or part owner of the vessel.

(R.S. §4287.)

Codification

R.S. §4287 derived from act Mar. 3, 1851, ch. 43, §6, 9 Stat. 636.

Cross References

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 188, 1308 of this Appendix; title 16 section 1443; title 33 section 2718; title 42 section 9607.

§188. Limitation of liability of owners applied to all vessels

Except as otherwise specifically provided therein, the provisions of sections 175,1 182, 183, 183b to 187, and 189 of this Appendix shall apply to all seagoing vessels, and also to all vessels used on lakes or rivers or in inland navigation, including canal boats, barges, and lighters.

(R.S. §4289; Feb. 18, 1875, ch. 80, §1, 18 Stat. 320; June 19, 1886, ch. 421, §4, 24 Stat. 80; June 5, 1936, ch. 521, §4, 49 Stat. 1481.)

References in Text

Sections 175, 182, 183, 183b to 187, and 189, referred to in text, was in the original “the nine preceding sections”, meaning R.S. §§4282–4283B and 4284–4288.

Section 175 of this Appendix, referred to in text, was repealed by act Oct. 9, 1940, ch. 777, §7, 54 Stat. 1028.

Codification

R.S. §4289 derived from act Mar. 3, 1851, ch. 43, §7, 9 Stat. 636.

Section, as enacted in the Revised Statutes, was as follows: “The provisions of this Title relating to the limitation of the liability of the owners of vessels, shall not apply to the owners of any canal-boat, barge, or lighter, or to any vessel of any description whatsoever used in rivers or inland navigation.”

It was amended, by striking out the words “this Title,” and inserting the words “the seven preceding sections,” by act Feb. 18, 1875.

It was further amended, to read in substance as set forth here, after the enactment of act June 26, 1884, ch. 121, §18, 23 Stat. 57, classified to section 189 of this Appendix, by act June 19, 1886.

Amendments

1936—Act June 5, 1936, substituted “Except as otherwise specifically provided therein, the provisions of the nine preceding sections” for “The provisions of the seven preceding sections”.

Section Referred to in Other Sections

This section is referred to in sections 183, 1308 of this Appendix; title 16 section 1443; title 33 section 2718; title 42 section 9607.

1 See References in Text note below.

§189. Limitation of liability of owners of vessels for debts

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; and 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: Provided, That this provision shall not prevent any claimant from joining all the owners in one action; nor shall the same apply to wages due to persons employed by said shipowners.

(June 26, 1884, ch. 121, §18, 23 Stat. 57.)

Codification

This section was enacted as part of the Shipping Act of 1884.

The original text of the proviso read as follows: “Provided, That this provision shall not affect the liability of any owner incurred previous to the passage of this act, nor prevent any claimant from joining all the owners in one action; nor shall the same apply to wages due to persons employed by said shipowners.”

The provision concerning liabilities previously incurred was omitted.

Cross References

Other provisions relating to the liability of vessels, their owners, agents, or charterers, see sections 190 to 195 of this Appendix.

Section as applicable to all seagoing vessels and all vessels used on lakes or rivers or on inland navigation, see section 188 of this Appendix.

Vessels within application of this section, see section 188 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 188 of this Appendix.

§190. Stipulations relieving from liability for negligence

It shall not be lawful for the manager, agent, master, or owner of any vessel transporting merchandise or property from or between ports of the United States and foreign ports to insert in any bill of lading or shipping document any clause, covenant, or agreement whereby it, he, or they shall be relieved from liability for loss or damage arising from negligence, fault, or failure in proper loading, stowage, custody, care, or proper delivery of any and all lawful merchandise or property committed to its or their charge. 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.

(Feb. 13, 1893, ch. 105, §1, 27 Stat. 445.)

Short Title

Act Feb. 13, 1893, enacting this section and sections 191 to 196 of this Appendix, is popularly known as the “Harter Act”.

Effective Date

Section 8 of act Feb. 13, 1893, provided: “That this act [enacting this section and sections 191 to 196 of this Appendix] shall take effect from and after the first day of July, eighteen hundred and ninety-three.”

Cross References

Clause, covenant or agreement relieving carrier or ship from liability for loss or damage arising from negligence, fault or failure in duties and obligations provided, to be null and void, see section 1303 of this Appendix.

Transportation of live animals, section inapplicable, see section 195 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 194, 195, 196, 1311 of this Appendix.

§191. Stipulations relieving from exercise of due diligence in equipping vessels

It shall not be lawful for any vessel transporting merchandise or property from or between ports of the United States of America and foreign ports, her owner, master, agent, or manager, to insert in any bill of lading or shipping document any covenant or agreement whereby the obligations of the owner or owners of said vessel to exercise due diligence 1 properly equip, man, provision, and outfit said vessel, and to make said vessel seaworthy and capable of performing her intended voyage, 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, shall in any wise be lessened, weakened, or avoided.

(Feb. 13, 1893, ch. 105, §2, 27 Stat. 445.)

Effective Date

Section effective July 1, 1893, see section 8 of act Feb. 13, 1893, set out as a note under section 190 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 194, 196, 1311 of this Appendix.

1 So in original. Probably should be followed by “to”.

§192. Limitation of liability for errors of navigation, dangers of sea and acts of God

If the owner of any vessel transporting merchandise or property to or from any port in the United States of America shall exercise due diligence to make the said vessel in all respects seaworthy and properly manned, equipped, and supplied, neither the vessel, her owner or owners, agent, or charterers, shall become or be held responsible for damage or loss resulting from faults or errors in navigation or in the management of said vessel nor shall the vessel, her owner or owners, charterers, agent, or master be held liable for losses arising from dangers of the sea or other navigable waters, acts of God, or public enemies, or the inherent defect, quality, or vice of the thing carried, or from insufficiency of package, or seizure under legal process, or for loss resulting from any act or omission of the shipper or owner of the goods, his agent or representative, or from saving or attempting to save life or property at sea, or from any deviation in rendering such service.

(Feb. 13, 1893, ch. 105, §3, 27 Stat. 445.)

Effective Date

Section effective July 1, 1893, see section 8 of act Feb. 13, 1893, set out as a note under section 190 of this Appendix.

Cross References

Liabilities and immunities of carrier and ship, see section 1304 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 194, 196, 1311 of this Appendix; title 16 section 1443.

§193. Bills of lading to be issued; contents

It shall be the duty of the owner or owners, masters, or agents of any vessel transporting merchandise or property from or between ports of the United States and foreign ports to issue to shippers of any lawful merchandise a bill of lading, or shipping document, stating, among other things, the marks necessary for identification, number of packages, or quantity, stating whether it be carrier's or shipper's weight, and apparent order or condition of such merchandise or property delivered to and received by the owner, master, or agent of the vessel for transportation, and such document shall be prima facie evidence of the receipt of the merchandise therein described.

(Feb. 13, 1893, ch. 105, §4, 27 Stat. 445.)

Effective Date

Section effective July 1, 1893, see section 8 of act Feb. 13, 1893, set out as a note under section 190 of this Appendix.

Cross References

Bills of lading for carriage of goods by sea, see section 1303 of this Appendix.

Section inapplicable to the transportation of live animals, see section 195 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 194, 195, 196, 1311 of this Appendix.

§194. Penalties; liens; recovery

For a violation of any of the provisions of sections 190 to 196 of this Appendix the agent, owner, or master of the vessel guilty of such violation, and who refuses to issue on demand the bill of lading herein provided for, shall be liable to a fine not exceeding $2,000. The amount of the fine and costs for such violation shall be a lien upon the vessel, whose agent, owner, or master is guilty of such violation, and such vessel may be libeled therefor in any district court of the United States, within whose jurisdiction the vessel may be found. One-half of such penalty shall go to the party injured by such violation and the remainder to the Government of the United States.

(Feb. 13, 1893, ch. 105, §5, 27 Stat. 446.)

Effective Date

Section effective July 1, 1893, see section 8 of act Feb. 13, 1893, set out as a note under section 190 of this Appendix.

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Section Referred to in Other Sections

This section is referred to in sections 196, 1311 of this Appendix.

§195. Certain provisions inapplicable to transportation of live animals

Sections 190 and 193 of this Appendix shall not apply to the transportation of live animals.

(Feb. 13, 1893, ch. 105, §7, 27 Stat. 446.)

Effective Date

Section effective July 1, 1893, see section 8 of act Feb. 13, 1893, set out as a note under section 190 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 194, 196, 1311 of this Appendix.

§196. Certain laws unaffected

Sections 190 to 196 of this Appendix shall not be held to modify or repeal sections 181 to 183 of this Appendix, or any other statute defining the liability of vessels, their owners, or representatives.

(Feb. 13, 1893, ch. 105, §6, 27 Stat. 446.)

Effective Date

Section effective July 1, 1893, see section 8 of act Feb. 13, 1893, set out as a note under section 190 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 194, 1311 of this Appendix.

CHAPTER 12—REGULATION OF VESSELS IN DOMESTIC COMMERCE

Sec.
251.
Vessels employed in coasting trade or fisheries.
(a)
Landing of catch of fish by foreign-flag vessels.
(b)
Sale or transfer for immediate consumption.
(c)
Forfeitures and penalties.
251a.
Remission or mitigation of fines, penalties or forfeitures.
251b.
Regulations.
262.
Trade of documented vessel not to defraud revenue laws.
277.
Inspection of documents.
289.
Transportation of passengers in foreign vessels.
289a.
Transportation of passengers in Canadian vessels between Rochester and Alexandria Bay.
289b.
Transportation of passengers and merchandise in Canadian vessels between points in Alaska and United States.
289c.
Transportation of passengers between Puerto Rico and other United States ports; foreign-flag vessels; unavailability of United States flag service.
(a)
Authorization of transportation.
(b)
Notification by Secretary; termination of services.
(c)
Extension of termination period.
(d)
Reinstatement of coastwise privileges.
(e)
“Passenger vessel” defined.
290.
Omitted.
291.
Transshipment of imported merchandise intended for immediate exportation.
292.
Vessels that may engage in dredging.
(a)
In general.
(b)
Exception.
(c)
Penalty.
316.
Use of foreign vessels in United States ports.
(a)
Towing vessels.
(b)
“Person” defined.
(c)
Foreign railroad companies using ferries, tugboats, or towboats.
(d)
Salvaging operations by foreign vessels.
(e)
Operations permitted by treaty.
319.
Civil penalties for trading without required certificate of documentation.
320.
Remission or mitigation of fines.
321.
Penalty for illegal enrollment or license.
322.
Penalty for malfeasance.
323.
Penalty for forgery and alteration.
324.
Penalty for obstructing officers.
326.
Exemption from forfeiture.
327.
Notice of seizure.
328.
Recovery of forfeitures and penalties.
336.
Canal boats exempt from enrollment, license, and customs fees.

        

Cross References

Custody and storage of vessels, vehicles, merchandise and baggage seized under laws relating to registering, enrolling, or licensing of vessels, see section 1605 of Title 19, Customs Duties.

§251. Vessels employed in coasting trade or fisheries

(a) Landing of catch of fish by foreign-flag vessels

Except as otherwise provided by treaty or convention to which the United States is a party, no foreign-flag vessel shall, whether documented as a cargo vessel or otherwise, land in a port of the United States its catch of fish taken on board such vessels on the high seas or fish products processed therefrom, or any fish or fish products taken on board such vessel on the high seas from a vessel engaged in fishing operations or in the processing of fish or fish products. The Secretary of Commerce may issue any regulations that 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.

(b) Sale or transfer for immediate consumption

Subsection (a) of this section shall not be deemed to prohibit the landing by a foreign-flag vessel of not more than fifty feet overall length in a port of the Virgin Islands of the United States for immediate consumption in such islands of its catch of fresh fish, whole or with the heads, viscera, or fins removed, but not frozen, otherwise processed, or further advanced. No fish landed under this authorization shall be sold or transferred except for immediate consumption. Sale or transfer to an agent, representative, or employee of a freezer or cannery shall be deemed to be prohibited in the absence of satisfactory evidence that such sale or transfer is for immediate consumption. For the purposes of this subsection, the term “immediate consumption” shall not preclude the freezing, smoking, or other processing of such fresh fish by the ultimate consumer thereof.

(c) Forfeitures and penalties

Any fish landed in the Virgin Islands of the United States which are retained, sold, or transferred other than as authorized in subsection (b) of this section shall be liable to forfeiture and any person or persons retaining, selling, transferring, purchasing, or receiving such fish shall severally be liable to a penalty of $1,000 for each offense, in addition to any other penalty provided in law.

(R.S. §4311; Sept. 2, 1950, ch. 842, 64 Stat. 577; Sept. 13, 1961, Pub. L. 87–220, §1, 75 Stat. 493; Aug. 15, 1979, Pub. L. 96–61, §2, 93 Stat. 407; Dec. 24, 1980, Pub. L. 96–594, title I, §126(b), 94 Stat. 3459; Jan. 11, 1988, Pub. L. 100–239, §8(a), 101 Stat. 1783.)

Codification

R.S. §4311 derived from acts Feb. 18, 1793, ch. 8, §1, 1 Stat. 305; Apr. 18, 1874, ch. 110, 18 Stat. 31.

Amendments

1988—Subsec. (a). Pub. L. 100–239 inserted at end “The Secretary of Commerce may issue any regulations that 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.”

1980—Subsec. (a). Pub. L. 96–594 struck out provisions relating to vessels entitled to privileges of vessels employed in coasting trade or fisheries, and provisions defining “fisheries”.

1979—Subsec. (a). Pub. L. 96–61 inserted provision defining “fisheries”.

1961—Pub. L. 87–220 designated existing provisions as subsec. (a), and added subsecs. (b) and (c).

1950—Act Sept. 2, 1950, inserted second sentence to increase protection to American fishermen.

Effective Date of 1980 Amendment

Section 128 of Pub. L. 96–594 provided in part that the amendment made by Pub. L. 96–594 is effective on first day of eighteenth month following December 1980.

Landing of Catch of Fish by Foreign Vessels

Provisions of this section prohibiting the landing of fish in United States ports by foreign-flag vessels direct from fishing grounds unaffected by Pub. L. 87–814, see section 6 of Pub. L. 87–814, set out as a note under section 951 of Title 16, Conservation.

Cross References

Exemption from requirements of this section—

Canal boats or boats employed on internal waters or canals of any state, see section 336 of this Appendix.

Entry and clearance fees and tonnage taxes, enrolled, licensed, or registered vessels, see sections 111, 122, and 123 of this Appendix.

§251a. Remission or mitigation of fines, penalties or forfeitures

Any fine, penalty, or forfeiture incurred under the provisions of this Act shall be subject to remission or mitigation in accordance with section 2107(b) of title 46.

(Pub. L. 87–220, §2, Sept. 13, 1961, 75 Stat. 493.)

References in Text

This Act, referred to in text, is Pub. L. 87–220, Sept. 13, 1961, 75 Stat. 493, which enacted this section and section 251b of this Appendix, and amended section 251 of this Appendix. For complete classification of this Act to the Code, see Tables.

“Section 2107(b) of title 46” substituted in text for “section 5294 of the Revised Statutes, as amended (46 U.S.C. 7)” on authority of Pub. L. 98–89, §2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of which enacted Title 46, Shipping.

§251b. Regulations

The Secretary of the Treasury may issue such regulations as he deems necessary for the enforcement of the provisions of this Act.

(Pub. L. 87–220, §3, Sept. 13, 1961, 75 Stat. 493.)

References in Text

This Act, referred to in text, is Pub. L. 87–220, Sept. 13, 1961, 75 Stat. 493, which enacted this section and section 251a of this Appendix, and amended section 251 of this Appendix. For complete classification of this Act to the Code, see Tables.

§262. Trade of documented vessel not to defraud revenue laws

No documented vessel shall be employed in any trade whereby the revenue laws of the United States shall be defrauded.

(R.S. §4320; Feb. 27, 1877, ch. 69, §1, 19 Stat. 251; Jan. 16, 1895, ch. 24, §3, 28 Stat. 625; Dec. 24, 1980, Pub. L. 96–594, title I, §126(c), 94 Stat. 3459.)

Codification

R.S. §4320 derived from act Feb. 18, 1793, ch. 8, §4, 1 Stat. 306.

R.S. §4320, as originally enacted, was as follows: “In order to the licensing of any vessel for carrying on the coasting-trade or fisheries, the husband, or managing owner, together with the master thereof, with one or more sureties to the satisfaction of the collector granting the same, shall become bound to pay to the United States, if such vessel be of the burden of five tons and less than twenty tons, the sum of one hundred dollars; and if twenty tons and not exceeding thirty tons, the sum of two hundred dollars; and if above thirty tons and not exceeding sixty tons, the sum of five hundred dollars; and if above sixty tons, the sum of one thousand dollars, in case it shall appear, within two years from the date of the bond, that such vessel has been employed in any trade whereby the revenue of the United States has been defrauded, during the time the license granted to such vessel remained in force. The master of such vessel shall also swear that he is a citizen of the United States, and that such license shall not be used for any other vessel or any other employment than that for which it is specially granted, or in any trade or business whereby the revenue of the United States may be defrauded; and if such vessel be less than twenty tons burden, the husband or managing owner shall swear that she is wholly the property of citizens of the United States; whereupon it shall be the duty of the collector of the district comprehending the port whereto such vessel may belong, the duty of six cents per ton being first paid, to grant a license.”

It was amended by act Feb. 27, 1877, by striking out “the duty of six cents per ton being first paid.”

It was amended generally by act Jan. 16, 1895.

Amendments

1980—Pub. L. 96–594 substituted “documented” for “licensed”, and struck out provisions respecting oaths required of master, etc.

Effective Date of 1980 Amendment

Section 128 of Pub. L. 96–594 provided in part that the amendment made by Pub. L. 96–594 is effective on first day of eighteenth month following December 1980.

Cross References

Canal boats or boats employed on internal waters or canals of any state, exemption from requirements of this section, see section 336 of this Appendix.

§277. Inspection of documents

Any officer concerned in the collection of the revenue may at all times inspect the certificate of documentation of any documented vessel or any document in lieu thereof; and if the master or other person in charge or command of any such vessel shall not exhibit the same, when required by such officer, unless the vessel is one which by regulation of the Secretary of Transportation is not required to have its certificate of documentation or document in lieu thereof on board, such master or person in charge or command shall be liable to a penalty of $100, unless the failure to do so is willful, in which case he shall be liable to a penalty of $1,000 and to a fine of not more than $1,000 or imprisonment for not more than one year, or both.

(R.S. §4336; Aug. 5, 1935, ch. 438, title III, §312, 49 Stat. 528; Aug. 30, 1957, Pub. L. 85–237, §2, 71 Stat. 518; Dec. 8, 1993, Pub. L. 103–182, title VI, §686(a)(5), 107 Stat. 2220.)

Codification

R.S. §4336 derived from act Feb. 18, 1793, ch. 8, §13, 1 Stat. 309.

Amendments

1993—Pub. L. 103–182 substituted “certificate of documentation of any documented vessel” for “register or enrollment or license of any vessel” and “Secretary of Transportation is not required to have its certificate of documentation” for “Secretary of the Treasury is not required to have its register or enrollment or license”.

1957—Pub. L. 85–237 provided for penalties against other officer in charge or command of vessel and by excepting vessels which are not required by regulation of the Secretary of Treasury to exhibit their documents on board.

1935—Act Aug. 5, 1935, provided for inspection of register or any document and punishment for willful failure to exhibit document.

Cross References

Canal boats or boats employed on internal waters or canals of any state, exemption from requirements of this section, see section 336 of this Appendix.

§289. Transportation of passengers in foreign vessels

No foreign vessel shall transport passengers between ports or places in the United States, either directly or by way of a foreign port, under a penalty of $200 for each passenger so transported and landed.

(June 19, 1886, ch. 421, §8, 24 Stat. 81; Feb. 17, 1898, ch. 26, §2, 30 Stat. 248.)

Amendments

1886—Act Feb. 17, 1898, amended section generally, increasing from $2 to $200 the penalty for transporting passengers in foreign vessels.

Cross References

Remission or mitigation of fines, see section 320 of this Appendix.

Transportation of merchandise between points in United States in other than domestic-built and documented vessels, see section 883 of this Appendix.

Transportation of passengers and merchandise in Canadian vessels between points in Alaska and United States, see section 289b of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 289a, 320 of this Appendix.

§289a. Transportation of passengers in Canadian vessels between Rochester and Alexandria Bay

Until such time as passenger service shall be established by vessels of the United States between the port of Rochester, New York, and the port of Alexandria Bay, New York, the Commissioner of Customs is authorized in his discretion to issue annually permits to Canadian passenger vessels to transport passengers between these ports; such Canadian vessels holding such permits not to be subject to the provisions of section 289 of this Appendix.

(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.)

Transfer of Functions

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Commissioner of Customs, referred to in text, is an officer of Department the Treasury.

“Commissioner of Customs” substituted in text for “Secretary of Commerce” on authority of Reorg. Plan No. 3 of 1946, §§101–104, set out as a note preceding section 3 of this Appendix.

Administrative Delegation of Functions by Secretary of the Treasury

Administrative delegation of functions by Secretary of the Treasury, see note set out preceding section 3 of this Appendix.

§289b. Transportation of passengers and merchandise in Canadian vessels between points in Alaska and United States

Notwithstanding the provisions of law of the United States restricting to vessels of the United States the transportation of passengers and merchandise directly or indirectly from any port in the United States to another port of the United States, passengers may be transported on Canadian vessels between ports in southeastern Alaska, and passengers and merchandise may be transported on Canadian vessels between Hyder, Alaska, and other points in southeastern Alaska, and between Hyder, Alaska, and other points in the United States outside Alaska, either directly or via a foreign port, or for any part of the transportation until the Secretary of Transportation determines that United States-flag service is available to provide such transportation.

(Pub. L. 87–77, June 30, 1961, 75 Stat. 196; Pub. L. 97–31, §12(22), Aug. 6, 1981, 95 Stat. 155.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Secretary of Commerce”.

Prior Provisions

Temporary provisions which authorized transportation of passengers and merchandise in Canadian vessels between points in Alaska and United States, were contained in the following acts:

Apr. 5, 1960, Pub. L. 86–410, 74 Stat. 16.

July 31, 1959, Pub. L. 86–126, 73 Stat. 272.

June 30, 1958, Pub. L. 85–473, 72 Stat. 244.

July 11, 1957, Pub. L. 85–103, 71 Stat. 294.

Apr. 18, 1956, ch. 207, 70 Stat. 114.

May 7, 1955, ch. 35, 69 Stat. 47.

June 29, 1954, ch. 413, 68 Stat. 321.

July 16, 1953, ch. 201, 67 Stat. 175.

June 11, 1952, ch. 391, 66 Stat. 133.

June 27, 1951, ch. 153, 65 Stat. 90.

June 29, 1950, ch. 409, 64 Stat. 301.

Aug. 22, 1949, ch. 493, 63 Stat. 622.

§289c. Transportation of passengers between Puerto Rico and other United States ports; foreign-flag vessels; unavailability of United States flag service

(a) Authorization of transportation

Notwithstanding any other provision of law, passengers may be transported on passenger vessels not qualified to engage in the coastwise trade between ports in Puerto Rico and other ports in the United States, directly or by way of a foreign port, except as otherwise provided in this section.

(b) Notification by Secretary; termination of services

(1) Upon a showing to the Secretary of Transportation, by the vessel owner or charterer, that service aboard a United States passenger vessel qualified to engage in the coastwise trade is being offered or advertised pursuant to a Certificate of Financial Responsibility for Indemnification of Passengers for Nonperformance of Transportation (46 App. U.S.C. 817e) from the Federal Maritime Commission for service in the coastwise trade between ports in Puerto Rico and other ports in the United States, the Secretary shall notify the owner or operator of each vessel transporting passengers under authority of this section that he shall, within 270 days after notification, terminate all such service. Coastwise privileges granted to every owner or operator under this section shall expire on the 270th day following the Secretary's notification.

(2) Upon a showing to the Secretary, by the vessel owner or charterer, that service aboard a United States passenger vessel not qualified to engage in the coastwise trade is being offered or advertised pursuant to a Certificate of Financial Responsibility for Indemnification of Passengers for Nonperformance of Transportation (46 App. U.S.C. 817e) from the Federal Maritime Commission for service in the coastwise trade between ports in Puerto Rico and other ports in the United States, the Secretary shall notify the owner or operator of each foreign-flag vessel transporting passengers under authority of this section that he shall, within 270 days after notification, terminate all such service. Coastwise privileges granted to every owner or operator of a foreign-flag vessel transporting passengers under authority of this section shall expire on the 270th day following the Secretary's notification.

(c) Extension of termination period

If, at the expiration of the 270-day period specified in subsections (b)(1) and (b)(2) of this section, the vessel that has been offering or advertising service pursuant to a certificate described in either of those subsections has not entered the coastwise passenger trade between ports in Puerto Rico and other ports in the United States, then the termination of service required by either of those subsections shall not be required until 90 days following the entry into that trade by the United States vessel.

(d) Reinstatement of coastwise privileges

Any coastwise privileges granted in this section that expire under subsection (b)(1) or (b)(2) of this section shall be reinstated upon a determination by the Secretary that the service on which the expiration of the privileges was based is no longer available.

(e) “Passenger vessel” defined

For the purposes of subsections (b)(1) and (b)(2) of this section, the term “passenger vessel” means any vessel of similar size or offering service comparable to any other vessel transporting passengers under authority of this section.

(Pub. L. 98–563, Oct. 30, 1984, 98 Stat. 2916.)

§290. Omitted

Codification

Section, act Feb. 17, 1898, ch. 26, §1, 30 Stat. 248, related to transportation of merchandise in foreign vessels. See section 883 of this Appendix.

§291. Transshipment of imported merchandise intended for immediate exportation

Whenever merchandise 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, the Secretary of the Treasury is authorized to prescribe regulations for the transshipment and transportation of such merchandise.

(Feb. 17, 1898, ch. 26, §3, 30 Stat. 248.)

Section Referred to in Other Sections

This section is referred to in section 446b of this Appendix.

§292. Vessels that may engage in dredging

(a) In general

Except as provided in subsection (b) of this section, a vessel may engage in dredging in the navigable waters of the United States only if—

(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;

(2) when chartered, the charterer of the vessel is a citizen of the United States under sections 802 and 803 of this Appendix for engaging in the coastwise trade; and

(3) for a vessel that is at least 5 net tons, the vessel is documented under chapter 121 of title 46 with a coastwise endorsement.

(b) Exception

A documented vessel with a registry endorsement may engage in the dredging of gold in Alaska.

(c) Penalty

When a vessel is operated in knowing violation of this section, that vessel and its equipment are liable to seizure by and forfeiture to the United States Government.

(May 28, 1906, ch. 2566, §1, 34 Stat. 204; Nov. 4, 1992, Pub. L. 102–587, title V, §5501(a)(1), 106 Stat. 5084.)

Amendments

1992—Pub. L. 102–587 amended section generally. Prior to amendment, section read as follows: “A foreign-built dredge shall not, under penalty of forfeiture, engage in dredging in the United States unless documented as a vessel of the United States.”

Nonapplicability to Certain Vessels

Section 5501(a)(2) of Pub. L. 102–587 provided that: “The amendment made by paragraph (1) [amending this section] 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); 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) 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.”

§316. Use of foreign vessels in United States ports

(a) Towing vessels

It shall be unlawful for any vessel not wholly owned by a person who is a citizen of the United States within the meaning of the laws respecting the documentation of vessels and not having in force a certificate of documentation issued under section 12106 or 12107 of title 46 to tow any vessel other than a vessel in distress, from any port or place in the United States, its Territories or possessions, embraced within the coastwise laws of the United States, to any other port or place within the same, either directly or by way of a foreign port or place, or to do any part of such towing, or to tow any such vessel, from point to point within the harbors of such places, or to tow any vessel transporting valueless material or any dredged material, regardless of whether it has commercial value, from a point or place in the United States or a point or place on the high seas within the Exclusive Economic Zone as defined in the Presidential Proclamation of March 10, 1983, to another point or place in the United States or a point or place on the high seas within that Exclusive Economic Zone. The owner and master of any vessel towing another vessel in violation of the provisions of this section shall each be liable to a fine of not less than $250 nor more than $1,000, which fines shall constitute liens upon the offending vessel enforceable through the district court of the United States for any district in which such vessel may be found, and clearance shall not be granted to such vessel until the fines have been paid. The towing vessel shall also be further liable to a penalty of $50 per ton on the measurement of every vessel towed in violation of this section, which sum may be recovered by way of libel or suit.

(b) “Person” defined

The term “person” as used in subsection (a) of this section, shall be held to include persons, firms, partnerships, associations, organizations, and corporations, doing business or existing under or by the authority of the laws of the United States, or of any State, Territory, district, or other subdivision thereof.

(c) Foreign railroad companies using ferries, tugboats, or towboats

Any foreign railroad company or corporation, whose road enters the United States by means of a ferry, tugboat, or towboat, may own such vessel and operate the same in connection with the water transportation of the passenger, freight, express, baggage, and mail cars used by such road, together with the passengers, freight, express matter, baggage, and mails transported in such cars, 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: Provided, That except as authorized by section 883 of this Appendix, such ferry, tugboat, or towboat shall not, under penalty of forfeiture, be used in connection with the transportation of any merchandise shipped from any port or place in the United States, its Territories or possessions, embraced within the coastwise laws of the United States, to any other port or place within the same.

(d) Salvaging operations by foreign vessels

No foreign vessel shall, 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, except when authorized by a treaty or in accordance with the provisions of section 725 of this Appendix: Provided, however, That if, on investigation, the Commissioner of Customs is satisfied that no suitable vessel wholly owned by a person who is a citizen of the United States and 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), is available in any particular locality he may authorize the use of a foreign vessel or vessels in salvaging operations in that locality and no penalty shall be incurred for such authorized use.

(e) Operations permitted by treaty

Nothing in this section shall be held or construed to prohibit or restrict any assistance to vessels or salvage operations authorized by 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 by the treaty between the United States and Mexico “to facilitate assistance to and salvage of vessels in territorial waters”, signed at Mexico City, June 13, 1935 (49 Stat. 3359).

(R.S. §4370; June 11, 1940, ch. 324, 54 Stat. 304; 1946 Reorg. Plan No. 3, §§101–104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097; May 19, 1986, Pub. L. 99–307, §10, 100 Stat. 447; June 7, 1988, Pub. L. 100–329, §2, 102 Stat. 589.)

References in Text

The Presidential Proclamation of March 10, 1983, referred to in subsec. (a), is Proc. No. 5030, Mar. 10, 1983, 48 F.R. 10605, which is set out as a note under section 1453 of Title 16, Conservation.

Act of June 7, 1918, referred to in subsec. (d), was classified to section 288 of former Title 46, Shipping, and was repealed by Pub. L. 85–911, §12, Sept. 2, 1958, 72 Stat. 1758, eff. Apr. 1, 1960. Provisions relating to numbering of vessels are contained in section 12301 et seq. of Title 46, Shipping.

Codification

R.S. §4370 derived from acts July 18, 1866, ch. 201, §21, 14 Stat. 183; Feb. 25, 1867, ch. 78, 14 Stat. 410.

Amendments

1988—Subsec. (a). Pub. L. 100–329 inserted provision at end of first sentence relating to transportation of valueless material or any dredged material, regardless of commercial value.

1986—Subsec. (a). Pub. L. 99–307 substituted “a certificate of documentation issued under section 12106 or 12107 of title 46” for “a certificate of registry, a certificate of enrollment, or a license, issued pursuant to title 48 or title 50 of the Revised Statutes or a certificate of award of number issued pursuant to the Act of June 7, 1918, as amended (46 U.S.C. 288),” and “a vessel in distress” for “a vessel of foreign registry, or a vessel in distress”.

1940—Act June 11, 1940, designated existing provisions as subsec. (a), expanded coverage to include all vessels and increased the penalties for violations, and added subsecs. (b) to (e).

Transfer of Functions

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. The Commissioner of Customs, referred to in text, is an officer of Department of the Treasury.

“Commissioner of Customs” substituted for “Secretary of Commerce” in subsec. (d) on authority of Reorg. Plan No. 3 of 1946, §§101–104, set out as a note preceding section 3 of this Appendix.

Administrative Delegation of Functions by Secretary of the Treasury

Administrative delegation of functions by Secretary of the Treasury, see note set out preceding section 3 of this Appendix.

Nonapplicability of Pub. L. 100–329 to Certain Vessel

Amendment by Pub. L. 100–329 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 this Appendix, see section 5501(c) of Pub. L. 102–587, set out as a note under section 883 of this Appendix.

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Cross References

Canadian vessels aiding vessels wrecked or disabled in United States waters, see section 725 of this Appendix.

Corporation meeting certain conditions deemed citizen for purposes of this section, see section 883–1 of this Appendix.

Definition of enrollment, license, or register with respect to vessel documentation, see section 12101 of Title 46, Shipping.

Section Referred to in Other Sections

This section is referred to in section 883–1 of this Appendix.

§319. Civil penalties for trading without required certificate of documentation

Whenever a vessel, entitled to be documented and not so documented, is employed in a trade for which certificates of documentation are issued under the vessel documentation laws, other than a trade covered by a registry, the vessel is liable to a civil penalty of $500 for each port at which it arrives without the proper certificate of documentation, and if it has on board any merchandise of foreign growth or manufacture (sea stores excepted), or any taxable domestic spirits, wines, or other alcoholic liquors, on which the duties or taxes have not been paid or secured to be paid, the vessel, together with its equipment and cargo, is liable to seizure and forfeiture. Marks, labels, brands, or stamps, indicative of foreign origin, upon or accompanying merchandise or containers of merchandise found on board such vessel, shall be prima facie evidence of the foreign origin of such merchandise.

(June 19, 1886, ch. 421, §7, 24 Stat. 81; Aug. 5, 1935, ch. 438, title III, §314, 49 Stat. 529; Dec. 24, 1980, Pub. L. 96–594, title I, §126(e), 94 Stat. 3459.)

Amendments

1980—Pub. L. 96–594 substituted provisions relating to violations and penalties for employment in a trade of a vessel entitled to be documented but not so documented for provisions relating to fines and penalties for trading without a license by a vessel twenty tons or upward, and struck out provisions respecting expiration of a license while a vessel is at sea.

1935—Act Aug. 5, 1935, provided for forfeiture, to deem marks, etc., prima facie evidence of foreign origin of merchandise, and to substitute “said fine or forfeiture” for “said fine of $30” in last sentence.

Effective Date of 1980 Amendment

Section 128 of Pub. L. 96–594 provided in part that the amendment made by Pub. L. 96–594 is effective on first day of eighteenth month following December 1980.

Section Referred to in Other Sections

This section is referred to in section 320 of this Appendix.

§320. Remission or mitigation of fines

The fines imposed by sections 5 1 and 6 1 of this act and sections 289 and 319 of this Appendix shall be subject to remission or mitigation by the Commissioner of Customs when the offense was not willfully committed, under such regulations and methods of ascertaining the facts as may seem to him advisable.

(June 19, 1886, ch. 421, §9, 24 Stat. 81; Feb. 14, 1903, ch. 552, §10, 32 Stat. 829; Mar. 4, 1913, ch. 141, §1, 37 Stat. 736; 1946 Reorg. Plan No. 3, §§101–104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097.)

References in Text

Section 5 of this act, referred to in text, is section 5 of act June 19, 1886, which was classified to section 77 of former Title 46, Shipping, and was repealed by Pub. L. 99–509, title V, §5104(b), Oct. 21, 1986, 100 Stat. 1928, and reenacted by section 5101(3) thereof as sections 14502 and 14512 of Title 46, Shipping.

Section 6 of this act, referred to in text, is section 6 of act June 19, 1886, which was classified to section 45 of former Title 46 and was repealed by Pub. L. 96–594, title I, §127, Dec. 24, 1980, 94 Stat. 3459.

Transfer of Functions

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Commissioner of Customs, referred to in text, is an officer of Department of the Treasury.

“Commissioner of Customs” substituted in text for “Secretary of Commerce” on authority of Reorg. Plan No. 3 of 1946, §§101–104, set out as a note preceding section 3 of this Appendix.

Upon incorporation into the Code, “Secretary of Commerce” substituted for “Secretary of the Treasury” to conform to acts Feb. 14, 1903, and Mar. 4, 1913.

Administrative Delegation of Functions by Secretary of the Treasury

Administrative delegation of functions by Secretary of the Treasury, see note set out preceding section 3 of this Appendix.

Cross References

Forfeitures, see sections 5601 et seq. and 7301 et seq. of Title 26, Internal Revenue Code.

Jurisdiction, fine, penalty or forfeiture, see section 1355 of Title 28, Judiciary and Judicial Procedure.

Mitigation, refunding and remission of penalties under laws relating to vessels, seamen, and customs, see sections 2107(b) and 2108 of Title 46, Shipping, and section 1618 of Title 19, Customs Duties.

1 See References in Text note below.

§321. Penalty for illegal enrollment or license

Every collector, who knowingly makes any record of enrollment or license of any vessel, and every other officer, or person, appointed by or under them, who makes any record, or grants any certificate or other document whatever, contrary to the true intent and meaning of title 50 of the Revised Statutes, or takes any other or greater fees than are by title 50 of the Revised Statutes allowed, or receives for any service performed pursuant to title 50 of the Revised Statutes, any reward or gratuity, and every surveyor, or other person appointed to measure vessels, who willfully delivers to any collector or such officer or employee as the Secretary of the Treasury shall designate a false description of any vessel, to be enrolled or licensed, in pursuance of title 50 of the Revised Statutes, shall be liable to a penalty of $500, and be rendered incapable of serving in any office of trust or profit under the United States.

(R.S. §4373; June 17, 1930, ch. 497, title IV, §523, 46 Stat. 740; Aug. 8, 1953, ch. 397, §2(d), 67 Stat. 508.)

References in Text

Title 50 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 50 of the Revised Statutes, consisting of R.S. §§4311 to 4390. For complete classification of R.S. §§4311 to 4390 to the Code, see Tables.

Codification

R.S. 4373 derived from act Feb. 18, 1793, ch. 8, §29, 1 Stat. 315.

Transfer of Functions

All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

Upon incorporation into the Code, “comptroller of customs” substituted for “naval officer” to conform to act Sept. 21, 1922, ch. 356, §523, 42 Stat. 974, which was repealed by section 651(a)(1) of act June 17, 1930. Section 523 of act June 17, 1930, classified to section 1523 of Title 19, Customs Duties, continued naval officers of customs as comptrollers of customs. Section 523 of act June 17, 1930, was amended by act Aug. 8, 1953, which omitted references to comptrollers of customs and substituted reference to Secretary of the Treasury or such officer or employee as he shall designate. The words “such officer or employee as the Secretary of the Treasury shall designate” were substituted for “comptrollers of customs” to reflect such change.

Cross References

Canal boats or boats employed on internal waters or canals of any state, exemption from requirements of this section, see section 336 of this Appendix.

Definition of enrollment or license with respect to vessel documentation, see section 12101 of Title 46, Shipping.

Section Referred to in Other Sections

This section is referred to in section 322 of this Appendix.

§322. Penalty for malfeasance

Every person, authorized and required by title 50 of the Revised Statutes to perform any act or thing as an officer, who willfully neglects or refuses to do and perform the same, according to the true intent and meaning of title 50 of the Revised Statutes, shall, if not subject to the penalty and disqualifications prescribed in section 321 of this Appendix, be liable to a penalty of $500 for the first offense, and of like sum for the second offense, and shall, after conviction for the second offense, be rendered incapable of holding any office of trust or profit under the United States.

(R.S. §4374.)

References in Text

Title 50 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 50 of the Revised Statutes, consisting of R.S. §§4311 to 4390. For complete classification of R.S. §§4311 to 4390 to the Code, see Tables.

Codification

R.S. §4374 derived from act Feb. 18, 1793, ch. 8, §29, 1 Stat. 315.

§323. Penalty for forgery and alteration

Every person who forges, counterfeits, erases, alters, or falsifies any enrollment, license, certificate, permit, or other document, mentioned or required in title 50 of the Revised Statutes, to be granted by any officer of the revenue, such person, so offending, shall be liable to a penalty of $500.

(R.S. §4375.)

References in Text

Title 50 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 50 of the Revised Statutes, consisting of R.S. §§4311 to 4390. For complete classification of R.S. §§4311 to 4390 to the Code, see Tables.

Codification

R.S. §4375 derived from act Feb. 18, 1793, ch. 8, §30, 1 Stat. 316.

Cross References

Definition of enrollment or license with respect to vessel documentation, see section 12101 of Title 46, Shipping.

Ship's papers, counterfeiting and forgery, see section 507 of Title 18, Crimes and Criminal Procedure.

§324. Penalty for obstructing officers

Every person who assaults, resists, obstructs, or hinders any officer in the execution of any Act or law relating to the enrollment, registry, or licensing of vessels, or of title 50 of the Revised Statutes, or of any of the powers or authorities vested in him by any such Act or law, shall, for every such offense, for which no other penalty is particularly provided, be liable to a penalty of $500.

(R.S. §4376.)

References in Text

Title 50 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 50 of the Revised Statutes, consisting of R.S. §§4311 to 4390. For complete classification of R.S. §§4311 to 4390 to the Code, see Tables.

Codification

R.S. §4376 derived from act Feb. 18, 1793, ch. 8, §31, 1 Stat. 316.

Cross References

Assault, penalty, see section 111 et seq. of Title 18, Crimes and Criminal Procedure.

§326. Exemption from forfeiture

Any merchandise on board any vessel which belongs, in good faith, to any person other than the master, owner, or mariners of such vessel, and upon which the duties have been paid, or secured according to law, shall be exempted from any forfeiture under title 50 of the Revised Statutes.

(R.S. §4378.)

References in Text

Title 50 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 50 of the Revised Statutes, consisting of R.S. §§4311 to 4390. For complete classification of R.S. §§4311 to 4390 to the Code, see Tables.

Codification

R.S. §4378 derived from act Feb. 18, 1793, ch. 8, §33, 1 Stat. 316.

Cross References

Canal boats or boats employed on internal waters or canals of any state, exemption from requirements of this section, see section 336 of this Appendix.

§327. Notice of seizure

In every case where a forfeiture of any vessel or merchandise shall accrue, it shall be the duty of the collector or other proper officer, who shall give notice of the seizure of such vessel or of such merchandise, to insert in the same advertisement the name and the place of residence of the person to whom any such vessel and merchandise belonged or were consigned, at the time of such seizure, if the same be known to him.

(R.S. §4379.)

Codification

R.S. §4379 derived from act Feb. 18, 1793, ch. 8, §28, 1 Stat. 315.

Transfer of Functions

All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

Cross References

Canal boats or boats employed on internal waters or canals of any state, exemption from requirements of this section, see section 336 of this Appendix.

§328. Recovery of forfeitures and penalties

All penalties and forfeitures which shall be incurred by virtue of title 50 of the Revised Statutes may be sued for, prosecuted, and recovered as penalties and forfeitures incurred by virtue of the laws relating to the collection of duties, and shall be appropriated in like manner; except when otherwise expressly prescribed.

(R.S. §4380.)

References in Text

Title 50 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 50 of the Revised Statutes, consisting of R.S. §§4311 to 4390. For complete classification of R.S. §§4311 to 4390 to the Code, see Tables.

Codification

R.S. §4380 derived from act Feb. 18, 1793, ch. 8, §35, 1 Stat. 317.

Cross References

Enforcement of penalties and forfeitures under the customs laws, see section 1581 et seq. of Title 19, Customs Duties.

§336. Canal boats exempt from enrollment, license, and customs fees

The act to which this is a supplement shall not be so construed as to extend the provisions of the said act to canal boats or boats employed on the internal waters or canals of any State; and all such boats, excepting only such as are provided with sails or propelling machinery of their own adapted to lake or coastwise navigation, and excepting such as are employed in trade with the Canadas, shall be exempt from the provisions of the said act, and from the payment of all customs and other fees under any act of Congress.

(Apr. 18, 1874, ch. 110, 18 Stat. 31.)

References in Text

The act to which this is a supplement, and the said act, referred to in text, mean act Feb. 18, 1793, ch. 8, 1 Stat. 305, entitled “An Act for enrolling and licensing ships or vessels to be employed in the coasting trade and fisheries, and for regulating the same”, which was incorporated into the Revised Statutes of 1878 as R.S. §§919, 923, 938, 941, 4311, 4312, 4319 to 4327, 4331 to 4338, 4349 to 4356, 4359 to 4369, 4371 to 4381, 4383, and 4385. For complete classification of such sections of the Revised Statutes to the Code, see Tables.

CHAPTER 13—PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN COMMERCE

Sec.
354.
Deposit of ship's papers with consul.
355.
Penalty for failure.

        

§354. Deposit of ship's papers with consul

Every master of a vessel, belonging to citizens of the United States, who shall sail from any port of the United States, shall, on his arrival at a foreign port, deposit his register, with the consul or vice consul, if any there be at such port; and it shall be the duty of such consul or vice consul, on such master or commander producing to him a clearance from the proper officer of the port where his vessel may be, to deliver to the master all of his papers, if such master or commander has complied with the provisions of law relating to the discharge of seamen in a foreign country, and to the payment of the fees of consular officers.

(R.S. §4309; Apr. 5, 1906, ch. 1366, §3, 34 Stat. 100.)

Codification

R.S. §4309 derived from act Feb. 28, 1803, ch. 9, §2, 2 Stat. 203.

Reference to “commercial agent, or vice-commercial agent” was omitted in view of the abolition of the grade of commercial agent by act Apr. 5, 1906.

As originally enacted, this section also required the deposit of sea-letters and Mediterranean passports. The use of such documents was discontinued by Presidential proclamation on Apr. 10, 1815.

Cross References

Consular fees for services to American vessels or seamen prohibited, see section 4206 of Title 22, Foreign Relations and Intercourse.

Retention of papers of American vessels by consular officers until payment of demands and wages, see section 4205 of Title 22.

Section Referred to in Other Sections

This section is referred to in section 355 of this Appendix.

§355. Penalty for failure

Every master of any such vessel who refuses or neglects to deposit the papers as required by section 354 of this Appendix, shall be liable to a penalty of $500, to be recovered by such consul or vice consul, in his own name, for the benefit of the United States, in any court of competent jurisdiction.

(R.S. §4310; Apr. 5, 1906, ch. 1366, §3, 34 Stat. 100.)

Codification

R.S. §4310 derived from act Feb. 28, 1803, ch. 9, §2, 2 Stat. 203.

Reference to “commercial agent, or vice-commercial agent” was omitted in view of the abolition of the grade of commercial agent by act Apr. 5, 1906.

CHAPTER 14—INSPECTION OF STEAM VESSELS

SUBCHAPTER VII—OCEANOGRAPHIC RESEARCH VESSELS

Sec.
441.
Exemption of oceanographic research vessels from inspection laws; definitions.
443.
Vessel not engaged in trade or commerce.
444.
Scientific personnel not considered seamen.

        

SUBCHAPTER VIII—SAILING SCHOOL VESSELS

446.
Sailing school students and sailing school instructors without seamen status under steam-vessel and merchant seamen provisions or maritime law doctrines.
446a.
Financial responsibility; minimum amount; evidence.
446b.
Sailing school vessel without status of merchant vessel or vessel engaged in trade or commerce.
446c.
Definitions.

        

SUBCHAPTER VII—OCEANOGRAPHIC RESEARCH VESSELS

§441. Exemption of oceanographic research vessels from inspection laws; definitions

As used in this subchapter—

(1) the term “oceanographic research vessel” means a vessel which the Secretary of the department in which the Coast Guard is operating finds is being employed exclusively in instruction in oceanography or limnology, or both, or exclusively in oceanographic research, including, but not limited to, such studies pertaining to the sea as seismic, gravity meter and magnetic exploration and other marine geophysical or geological surveys, atmospheric research, and biological research;

(2) the term “scientific personnel” means persons who are aboard a vessel solely for the purpose of engaging in scientific research, instructing, or receiving instruction, in oceanography or limnology.

(Pub. L. 89–99, §1, July 30, 1965, 79 Stat. 424.)

Restatement

Section was restated in part in section 2101(18), (31) of Title 46, Shipping, as enacted by Pub. L. 98–89.

Transfer of Functions

Coast Guard transferred to Department of Transportation, and functions, powers, and duties relating to Coast Guard of Secretary of the Treasury and of other officers and offices of Department of the Treasury transferred to Secretary of Transportation by Pub. L. 89–670, §6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. L. 89–670, however, provided that notwithstanding such transfer of functions, Coast Guard shall operate as part of Navy in time of war or when President directs as provided in section 3 of Title 14, Coast Guard. See section 108 of Title 49, Transportation.

§443. Vessel not engaged in trade or commerce

An oceanographic research vessel shall not be deemed to be engaged in trade or commerce.

(Pub. L. 89–99, §3, July 30, 1965, 79 Stat. 424.)

§444. Scientific personnel not considered seamen

Scientific personnel on an oceanographic research vessel shall not be considered seamen under the provisions of title 53 of the Revised Statutes and Act 1 amendatory thereof or supplementary thereto.

(Pub. L. 89–99, §4, July 30, 1965, 79 Stat. 424.)

Restatement

Section was restated in part in section 8701(a)(5) of Title 46, Shipping, as enacted by Pub. L. 98–89.

References in Text

Title 53 of the Revised Statutes, referred to in text, consisted of R.S. §§4501 to 4612, which were classified to sections 541 to 543, 545 to 549, 561, 562, 564 to 571, 574 to 578, 591 to 597, 600, 602 to 605, 621 to 628, 641 to 643, 644, 645, 651 to 660, 661 to 669, 674 to 679, 681 to 687, 701 to 710, and 711 to 713 of former Title 46, Shipping. For complete classification of R.S. §§4501 to 4612 to the Code, see Tables. A majority of such sections of the Revised Statutes were repealed and various provisions thereof were reenacted in Title 46, Shipping, by Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 500. For disposition of sections of former Title 46 into revised Title 46, see Table at beginning of Title 46.

1 So in original. Probably should be “Acts”.

SUBCHAPTER VIII—SAILING SCHOOL VESSELS

§446. Sailing school students and sailing school instructors without seamen status under steam-vessel and merchant seamen provisions or maritime law doctrines

Sailing school students and sailing school instructors shall not be considered to be seamen under the provisions of titles 52 and 53 of the Revised Statutes of the United States and any Act amendatory thereof or supplementary thereto, or for the purposes of the maritime law doctrines of maintenance and cure or warranty of seaworthiness.

(Pub. L. 97–322, title II, §204, Oct. 15, 1982, 96 Stat. 1589.)

References in Text

Title 52 of the Revised Statutes, referred to in text, consisted of R.S. §§4399 to 4500, which were classified to sections 170, 214, 215, 222, 224, 224a, 226, 228, 229, 230 to 234, 239, 240, 361, 362, 364, 371 to 373, 375 to 382, 384, 385, 391, 391a, 392 to 394, 399 to 404, 405 to 416, 435 to 440, 451 to 453, 460, 461 to 463, 464, 466, 467 to 482, and 489 to 498 of former Title 46, Shipping. For complete classification of R.S. §§4399 to 4500 to the Code, see Tables. A majority of such sections of the Revised Statutes were repealed and various provisions thereof were reenacted in Title 46, Shipping, by Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 500. For disposition of sections of former Title 46 into revised Title 46, see Table at beginning of Title 46.

Title 53 of the Revised Statutes, referred to in text, consisted of R.S. §§4501 to 4612, which were classified to sections 541 to 543, 545 to 549, 561, 562, 564 to 571, 574 to 578, 591 to 597, 600, 602 to 605, 621 to 628, 641 to 643, 644, 645, 651 to 660, 661 to 669, 674 to 679, 681 to 687, 701 to 710, and 711 to 713 of former Title 46, Shipping. For complete classification of R.S. §§4501 to 4612 to the Code, see Tables. A majority of such sections of the Revised Statutes were repealed and various provisions thereof were reenacted in Title 46, Shipping, by Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 500. For disposition of sections of former Title 46 into revised Title 46, see Table at beginning of Title 46.

Effective Date

Section 208(b) of Pub. L. 97–322 provided that: “Sections 202, 203, 204, 205, 206, and 207 of this title and the amendments made by such sections [enacting this subchapter and amending sections 390 to 390d and 672 of former Title 46, Shipping] shall take effect eighteen months after the date of enactment of this Act [Oct. 15, 1982] or on the date upon which the rules and regulations referred to in subsection (a) [section 446d of former Title 46] take effect, whichever is earlier.”

Short Title

Section 201 of title II of Pub. L. 97–322 provided that: “This title [enacting this subchapter, amending sections 390 to 390d and 672 of former Title 46, Shipping, and enacting a provision set out as a note under this section] may be cited as the ‘Sailing School Vessels Act of 1982’.”

Section Referred to in Other Sections

This section is referred to in section 446c of this Appendix.

§446a. Financial responsibility; minimum amount; evidence

Each owner or charterer of a sailing school vessel shall maintain evidence of his or her financial responsibility to meet any liability incurred for death or injury to sailing school students or sailing school instructors on voyages aboard the vessel, in an amount not less than $50,000 for each student or instructor. Such financial responsibility may be evidenced by policies of insurance or other adequate financial resources.

(Pub. L. 97–322, title II, §205, Oct. 15, 1982, 96 Stat. 1589.)

Section Referred to in Other Sections

This section is referred to in section 446c of this Appendix.

§446b. Sailing school vessel without status of merchant vessel or vessel engaged in trade or commerce

For the purposes of section 291 of this Appendix, section 11101(a)–(c) of title 46, and section 883 of this Appendix, a sailing school vessel shall not be deemed to be a merchant vessel or a vessel engaged in trade or commerce.

(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.)

Amendments

1984—Pub. L. 98–557 inserted reference to section 11101(a)–(c) of title 46.

Section Referred to in Other Sections

This section is referred to in section 446c of this Appendix.

§446c. Definitions

For purposes of this subchapter, the terms “sailing school students”, “sailing school instructor”, and “sailing school vessel” have the meaning given such terms in section 2101 of title 46.

(Pub. L. 97–322, title II, §207, Oct. 15, 1982, 96 Stat. 1590.)

References in Text

This subchapter, referred to in text, was in the original “sections 203, 204, 205, 206, and 208 of this title”, meaning sections 203 to 206 and 208 of title II of Pub. L. 97–322, Oct. 15, 1982, 96 Stat. 1589, 1590. Sections 204 to 206 of Pub. L. 97–322 are classified to this subchapter. Sections 203 and 208 were classified to sections 672(b)(4) and 446d of former Title 46, Shipping, respectively, and were repealed by Pub. L. 98–89, §4(b), Aug. 23, 1983, 97 Stat. 599, and reenacted by section 1 thereof as sections 7311 and 8101(a) of Title 46, Shipping, respectively.

Codification

“Section 2101 of title 46” substituted in text for “the first section of the Act entitled ‘An Act to require the inspection and certification of certain vessels carrying passengers’, enacted May 10, 1956 (46 U.S.C. 390) as amended by this title” on authority of Pub. L. 98–89, §2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of which enacted Title 46, Shipping.

CHAPTER 15—TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM VESSELS

Sec.
466c.
Export of horses.
(a)
Restriction on export of horses.
(b)
Granting of waivers.
(c)
Penalties.
491.
Liability of master and owners for damage to passengers.

        

§466c. Export of horses

(a) Restriction on export of horses

Notwithstanding any other provision of law, no horse may be exported by sea from the United States, or any of its territories or possessions, unless such horse is part of a consignment of horses with respect to which a waiver has been granted under subsection (b) of this section.

(b) Granting of waivers

The Secretary of Commerce, in consultation with the Secretary of Agriculture, may issue regulations providing for the granting of waivers permitting the export by sea of a specified consignment of horses, if the Secretary of Commerce, in consultation with the Secretary of Agriculture, determines that no horse in that consignment is being exported for purposes of slaughter.

(c) Penalties

(1) Criminal penalty

Any person who knowingly violates this section or any regulation, order, or license issued under this section shall be fined not more than 5 times the value of the consignment of horses involved or $50,000, whichever is greater, or imprisoned not more than 5 years, or both.

(2) Civil penalty

The Secretary of Commerce, after providing notice and an opportunity for an agency hearing on the record, may impose a civil penalty of not to exceed $10,000 for each violation of this section or any regulation, order, or license issued under this section, either in addition to or in lieu of any other liability or penalty which may be imposed.

(Mar. 3, 1891, ch. 521, §3, as added July 12, 1985, Pub. L. 99–64, title I, §125, 99 Stat. 156.)

Prior Provisions

Provisions similar to those in this section were contained in section 7(j) of the Export Administration Act of 1979, section 2406(j) of Title 50, Appendix, War and National Defense, prior to the amendment of that Act by the Export Administration Amendments Act of 1985, Pub. L. 99–64, which enacted this section.

§491. Liability of master and owners for damage to passengers

Whenever damage is sustained by any passenger or his baggage, from explosion, fire, collision, or other cause, the master and the owner of such vessel, or either of them, and the vessel shall be liable to each and every person so injured, to the full amount of damage if it happens through any neglect or failure to comply with the provisions of title 52 of the Revised Statutes, or through known defects or imperfections of the steaming apparatus or of the hull; and any person sustaining loss or injury through the carelessness, negligence, or willful misconduct of any master, mate, engineer, or pilot, or his neglect or refusal to obey the laws governing the navigation of such steamers, may sue such master, mate, engineer, or pilot, and recover damages for any such injury caused by any such master, mate, engineer, or pilot.

(R.S. §4493.)

References in Text

Title 52 of the Revised Statutes, referred to in text, was in the original “this Title”, meaning title 52 of the Revised Statutes, consisting of R.S. §§4399 to 4500, which were classified to sections 170, 214, 215, 222, 224, 224a, 226, 228, 229, 230 to 234, 239, 240, 361, 362, 364, 371 to 373, 375 to 382, 384, 385, 391, 391a, 392 to 394, 399 to 404, 405 to 416, 435 to 440, 451 to 453, 460, 461 to 463, 464, 466, 467 to 482, and 489 to 498 of former Title 46, Shipping. For complete classification of R.S. §§4399 to 4500 to the Code, see Tables. A majority of such sections of the Revised Statutes were repealed and various provisions thereof were reenacted in Title 46, Shipping, by Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 500. For disposition of sections of former Title 46 into revised Title 46, see Table at beginning of Title 46.

Codification

R.S. §4493 derived from act Feb. 28, 1871, ch. 100, §43, 16 Stat. 453.

Cross References

Owner's liability limited to proportion of any or all debts and liabilities that his individual share of vessels bears to the whole, see section 189 of this Appendix.

CHAPTER 18—MERCHANT SEAMEN

SUBCHAPTER VII—PROTECTION AND RELIEF

Sec.
688.
Recovery for injury to or death of seaman.
(a)
Application of railway employee statutes; jurisdiction.
(b)
Limitation for certain aliens; applicability in lieu of other remedy.

        

SUBCHAPTER VII—PROTECTION AND RELIEF

§688. Recovery for injury to or death of seaman

(a) Application of railway employee statutes; jurisdiction

Any seaman who shall suffer personal injury in the course of his employment may, at his election, maintain an action for damages at law, with the right of trial by jury, and in such action all statutes of the United States modifying or extending the common-law right or remedy in cases of personal injury to railway employees shall apply; and in case of the death of any seaman as a result of any such personal injury the personal representative of such seaman may maintain an action for damages at law with the right of trial by jury, and in such action all statutes of the United States conferring or regulating the right of action for death in the case of railway employees shall be applicable. Jurisdiction in such actions shall be under the court of the district in which the defendant employer resides or in which his principal office is located.

(b) Limitation for certain aliens; applicability in lieu of other remedy

(1) No action may be maintained under subsection (a) of this section or under any other maritime law of the United States for maintenance and cure or for damages for the injury or death of a person who was not a citizen or permanent resident alien of the United States at the time of the incident giving rise to the action if the incident occurred—

(A) while that person was in the employ of an enterprise engaged in the exploration, development, or production of offshore mineral or energy resources—including but not limited to drilling, mapping, surveying, diving, pipelaying, maintaining, repairing, constructing, or transporting supplies, equipment or personnel, but not including transporting those resources by (a) 1 vessel constructed or adapted primarily to carry oil in bulk in the cargo spaces; and

(B) in the territorial waters or waters overlaying the continental shelf of a nation other than the United States, its territories, or possessions. As used in this paragraph, the term “continental shelf” has the meaning stated in article I of the 1958 Convention on the Continental Shelf.


(2) The provisions of paragraph (1) of this subsection shall not be applicable if the person bringing the action establishes that no remedy was available to that person—

(A) under the laws of the nation asserting jurisdiction over the area in which the incident occurred; or

(B) under the laws of the nation in which, at the time of the incident, the person for whose injury or death a remedy is sought maintained citizenship or residency.

(Mar. 4, 1915, ch. 153, §20, 38 Stat. 1185; June 5, 1920, ch. 250, §33, 41 Stat. 1007; Dec. 29, 1982, Pub. L. 97–389, title V, §503(a), 96 Stat. 1955.)

References in Text

“Statutes of the United States modifying or extending the common-law right or remedy in cases of personal injury, to railway employees” and “statutes of the United States conferring or regulating the right of action for death in the case of railway employees”, referred to in subsec. (a), probably mean acts June 11, 1906, ch. 3073, 34 Stat. 232; Apr. 22, 1908, ch. 149, 35 Stat. 65; Apr. 5, 1910, ch. 143, 36 Stat. 291; and Aug. 11, 1939, ch. 685, 53 Stat. 1404, popularly known as the Employers’ Liability Acts. Act Apr. 22, 1908, ch. 149, 35 Stat. 65, is classified generally to chapter 2 (§51 et seq.) of Title 45, Railroads. For complete classification of acts Apr. 22, 1908, Apr. 5, 1910, and Aug. 11, 1939 to the Code, see Short Title note set out under section 51 of Title 45 and Tables.

The 1958 Convention on the Continental Shelf, referred to in subsec. (b)(1)(B), was done at Geneva, April 29, 1958, and entered into force for the United States, June 10, 1964. See 15 UST 471; TIAS 5578.

Amendments

1982—Pub. L. 97–389 designated existing provisions as subsec. (a) and added subsec. (b).

1920—Act June 5, 1920, amended section generally. Prior to amendment, section read as follows: “In any suit to recover damages for any injury sustained on board vessel or in its service seamen having command shall not be held to be fellow-servants with those under their authority.”

Effective Date of 1982 Amendment

Section 503(b) of Pub. L. 97–389 provided that: “The amendment made by this section [amending this section] does not apply to any action arising out of an incident that occurred before the date of enactment of this section [Dec. 29, 1982].”

Cross References

Jurisdiction of district courts, see sections 1331 and 1332 of Title 28, Judiciary and Judicial Procedure.

Suits for recovery of damages for personal injury or death, or both, arising out of maritime tort, not maintainable unless commenced within three years from date on which cause of action accrued, see section 763a of this Appendix.

Section Referred to in Other Sections

This section is referred to in title 33 section 903.

1 So in original. Probably should be “a”.

CHAPTER 19—WRECKS AND SALVAGE

SUBCHAPTER I—GENERALLY

Sec.
721.
Vessels stranded on foreign coasts.
722.
Property wrecked on Florida coast.
723.
Forfeitures for taking wrecked property to foreign ports.
724.
License to wreckers on Florida coast.
725.
Canadian vessels aiding vessels wrecked or disabled in United States waters.
726.
International agreement as to derelicts.
727.
Right to salvage not affected by ownership of vessel.
729.
Salvors of life to share in remuneration.
730.
Time limit for salvage suits.
731.
Applicability to ships of war.

        

SUBCHAPTER III—ICE AND DERELICTS

738.
International agreements as to ice patrol and derelict destruction; allocation of expenses.
738a.
Patrol services.
(a)
Maintenance of ice patrol; aid to ships in distress; destruction of derelicts.
(b)
Warning to vessels.
(c)
Report on ships in dangerous regions.
(d)
Administration by Coast Guard.
(e)
Annual report.
738c.
Speed of vessel in ice region; penalty.

        

Cross References

Owners of vessels sunk in navigable channels to mark them until removed or abandoned, see section 409 of Title 33, Navigation and Navigable Waters.

Removal by Secretary of Army of vessels sunk in navigable waters or harbors, etc., see sections 414 and 415 of Title 33.

SUBCHAPTER I—GENERALLY

§721. Vessels stranded on foreign coasts

Consuls and vice consuls, in cases where vessels of the United States are stranded on the coasts of their consulates respectively, shall, as far as the laws of the country will permit, take proper measures, as well for the purpose of saving the vessels, their cargoes and appurtenances, as for storing and securing the effects and merchandise saved, and for taking inventories thereof; and the merchandise and effects saved, with the inventories thereof so taken, shall, after deducting therefrom the expenses, be delivered to the owners. No consul or vice consul shall have authority to take possession of any such merchandise, or other property, when the master, owner, or consignee thereof is present or capable of taking possession of the same.

(R.S. §4238.)

Codification

R.S. §4238 derived from act Apr. 14, 1792, ch. 24, §3, 1 Stat. 255.

§722. Property wrecked on Florida coast

All property, of any description whatsoever, which shall be taken from any wreck, from the sea, or from any of the keys and shoals, within the jurisdiction of the United States, on the coast of Florida, shall be brought to some port of entry within the jurisdiction of the United States.

(R.S. §4239.)

Codification

R.S. §4239 derived from act Mar. 3, 1825, ch. 107, §2, 4 Stat. 133.

Cross References

Free importation of merchandise recovered from sunken and abandoned vessels, see section 1310 of Title 19, Customs Duties.

§723. Forfeitures for taking wrecked property to foreign ports

Every vessel 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 any foreign port, shall, together with her tackle, apparel, and furniture, be forfeited, and all forfeitures incurred by virtue of this section shall accrue, one moiety to the informer and the other to the United States.

(R.S. §4240.)

Codification

R.S. §4240 derived from act Mar. 3, 1825, ch. 107, §1, 4 Stat. 132.

§724. License to wreckers on Florida coast

No vessel, or master thereof, shall be regularly employed in the business of wrecking on the coast of Florida without the license of the judge of the district court for the district of Florida; and, before licensing any vessel or master, the judge shall be satisfied that the vessel is seaworthy, and properly and sufficiently fitted and equipped for the business or saving property shipwrecked and in distress; and that the master thereof is trustworthy, and innocent of any fraud or misconduct in relation to any property shipwrecked or saved on the coast.

(R.S. §4241.)

Codification

R.S. §4241 derived from act Feb. 23, 1847, ch. 20, §3, 9 Stat. 131.

Division of Florida Into Three Judicial Districts

Florida divided into three judicial districts, see section 89 of Title 28, Judiciary and Judicial Procedure.

§725. Canadian vessels aiding vessels wrecked or disabled in United States waters

Canadian vessels and wrecking appurtenance may render aid and assistance to Canadian or other vessels and property wrecked, disabled, or in distress in the waters of the United States contiguous to the Dominion of Canada.

This section shall be construed to apply to the canal and improvement of the waters between Lake Erie and Lake Huron, and to the waters of the Saint Mary's River and canal: And provided further, That this section shall cease to be in force from and after the date of the proclamation of the President of the United States to the effect that said reciprocal privilege has been withdrawn, revoked, or rendered inoperative by the said Government of the Dominion of Canada.

(June 19, 1878, ch. 324, 20 Stat. 175; May 24, 1890, ch. 292, 26 Stat. 120; Mar. 3, 1893, ch. 211, §1, 27 Stat. 683.)

Codification

Act June 19, 1878, was entitled “An act to aid vessels wrecked or disabled in the waters coterminous to the United States and the Dominion of Canada.”

As originally enacted, it read: “That Canadian vessels of all descriptions may render aid or assistance to Canadian or other vessels wrecked or disabled in the waters of the United States contiguous to the Dominion of Canada: Provided, That this act shall not take effect until proclamation by the President declaring that the privilege of aiding American or other vessels wrecked or disabled in Canadian waters contiguous to the United States has been extended by the Government of the Dominion of Canada and declaring this act to be in force: And provided further, That this act shall cease to be in force from and after the date of proclamation by the President to the effect that said reciprocal privilege has been withdrawn or revoked by said Government of the Dominion of Canada.”

Act May 24, 1890, amended act June 19, 1878, to read as above set forth, except that, besides making the act applicable to the canal and improvement of the waters between Lake Erie and Lake Huron, etc., it was also made applicable to the Welland Canal, and the first paragraph contained a proviso concerning the taking effect of the act.

Act Mar. 3, 1893, struck out the provision relating to the Welland Canal.

Cross References

Use of foreign tugboats in United States prohibited, see section 316 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 316 of this Appendix.

§726. International agreement as to derelicts

The President of the United States is authorized to make with the several Governments interested in the navigation of the North Atlantic Ocean, an international agreement providing for the reporting, marking, and removal of dangerous wrecks, derelicts, and other menaces to navigation in the North Atlantic Ocean outside the coast waters of the respective countries bordering thereon.

(Oct. 31, 1893, No. 13, 28 Stat. 13.)

Cross References

International agreements as to ice patrol and derelict destruction, see section 738 of this Appendix.

§727. Right to salvage not affected by ownership of vessel

The right to remuneration for assistance or salvage services shall not be affected by common ownership of the vessels rendering and receiving such assistance or salvage services.

(Aug. 1, 1912, ch. 268, §1, 37 Stat. 242.)

Effective Date

Section 6 of act Aug. 1, 1912, provided that the act [enacting sections 727 to 731 of this Appendix] shall take effect on and after July 1, 1912.

Section Referred to in Other Sections

This section is referred to in section 731 of this Appendix.

§729. Salvors of life to share in remuneration

Salvors of human life, who have taken part in the services rendered on the occasion of the accident giving rise to salvage, are entitled to a fair share of the payment awarded to the salvor for salving the vessel or other property or preventing or minimizing damage to the environment.

(Aug. 1, 1912, ch. 268, §3, 37 Stat. 242; Dec. 19, 1991, Pub. L. 102–241, §40(a), 105 Stat. 2225.)

Amendments

1991—Pub. L. 102–241 substituted “payment awarded to the salvor for salving the vessel or other property or preventing or minimizing damage to the environment” for “remuneration awarded to the salvors of the vessel, her cargo, and accessories”.

Section Referred to in Other Sections

This section is referred to in section 731 of this Appendix.

§730. Time limit for salvage suits

A suit for the recovery of remuneration for rendering assistance or salvage services shall not be maintainable if brought later than two years from the date when such assistance or salvage was rendered, unless the court in which the suit is brought shall be satisfied that during such period there had not been any reasonable opportunity of arresting the assisted or salved vessel within the jurisdiction of the court or within the territorial waters of the country in which the libelant resides or has his principal place of business.

(Aug. 1, 1912, ch. 268, §4, 37 Stat. 242.)

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Section Referred to in Other Sections

This section is referred to in section 731 of this Appendix.

§731. Applicability to ships of war

Nothing in sections 727, 729, and 730 of this Appendix and section 2304 of title 46 shall be construed as applying to ships of war or to Government ships appropriated exclusively to a public service.

(Aug. 1, 1912, ch. 268, §5, 37 Stat. 242; Dec. 19, 1991, Pub. L. 102–241, §40(b), 105 Stat. 2225.)

Amendments

1991—Pub. L. 102–241 substituted “Nothing in sections 727, 729, and 730 of this Appendix and section 2304 of title 46” for “Nothing in this Act”.

SUBCHAPTER III—ICE AND DERELICTS

§738. International agreements as to ice patrol and derelict destruction; allocation of expenses

The President is authorized to conclude agreements with interested maritime nations (a) to 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 aid within the limits of the patrol; (b) to maintain a service of study and observation of ice and current conditions in such waters as may affect the set and drift of ice in the north Atlantic Ocean; and (c) to undertake all practicable steps to insure 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 thirty-four degrees north, longitude seventy degrees west, if this destruction or removal is necessary. The President is further authorized to include in such agreements a provision for payment to the United States by the countries concerned, of their proportionate share of the expense for maintenance of the services named, or for the United States to contribute its proportionate share should it be agreed that another country was to maintain the patrol.

(June 25, 1936, ch. 807, §1, 49 Stat. 1922.)

Section Referred to in Other Sections

This section is referred to in section 738a of this Appendix.

§738a. Patrol services

(a) Maintenance of ice patrol; aid to ships in distress; destruction of derelicts

Unless the agreements made in accordance with section 738 of this Appendix provide otherwise, an ice patrol shall be maintained during the whole of the ice season in guarding the southeastern, southern, and southwestern limits of the region of icebergs in the vicinity of the Grand Banks of Newfoundland, and the patrol shall inform trans-Atlantic and other passing vessels by radio and such other means as are available of the ice conditions and the extent of the dangerous region. A service of study of ice and current conditions, a service of affording assistance to vessels and crews requiring aid, and a service of removing and destroying derelicts shall be maintained during the ice season and any or all such services may be maintained during the remainder of the year as may be advisable.

(b) Warning to vessels

The ice patrol vessels shall warn vessels known to be approaching a dangerous area and recommend safe routes.

(c) Report on ships in dangerous regions

The ice patrol vessels shall record the name, together with all the facts in the case, of any ship which is observed or known to be on other than a regular recognized or advertised ship route crossing the North Atlantic Ocean, or to have crossed the fishing banks of Newfoundland north of latitude forty-three degrees north during the fishing season, or, when proceeding to and from ports of North America to have passed through regions known or believed to be endangered by ice. The name of any such ship and all pertinent information relating to the incident shall be reported to the government of the country to which the ship belongs, if the government of that country so requests.

(d) Administration by Coast Guard

The Commandant of the Coast Guard, under the direction of the Secretary of Transportation, shall administer the services provided for in this section and shall assign thereto such vessels, material, and personnel of the Coast Guard as may be necessary. Any executive department or agency may upon the request of the Secretary of Transportation detail personnel, loan or contribute material or equipment, or otherwise assist in the carrying out of the services named.

(e) Annual report

The Commandant of the Coast Guard shall publish each year a report of the activities of the services provided for in this section, a copy of which shall be furnished to each interested foreign government and to each agency assisting in the work.

(June 25, 1936, ch. 807, §2, 49 Stat. 1922; Oct. 15, 1966, Pub. L. 89–670, §6(b)(1), 80 Stat. 938.)

Transfer of Functions

“Secretary of Transportation” substituted in subsec. (d) for “Secretary of the Treasury” on authority of Pub. L. 89–670, §6(b)(1), Oct. 15, 1966, 80 Stat. 938, which transferred functions, powers, and duties relating to Coast Guard of Secretary of the Treasury and of other officers and offices of Department of the Treasury to Secretary of Transportation. Section 6(b)(2) of Pub. L. 89–670, however, provided that notwithstanding such transfer of functions, Coast Guard shall operate as part of Navy in time of war or when President directs as provided in section 3 of Title 14, Coast Guard. See section 108 of Title 49, Transportation.

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Functions of Coast Guard, and Commandant of Coast Guard, excepted from transfer when Coast Guard is operating as part of Navy under sections 1 and 3 of Title 14, Coast Guard.

§738c. Speed of vessel in ice region; penalty

(a) The master of every vessel of the United States when ice is reported on or near his course, shall proceed at a moderate speed or alter his course so as to go well clear of the danger zone.

(b) If the master of any such ship fails to comply with this section, he shall for each offense be liable to a fine not exceeding $500.

(June 25, 1936, ch. 807, §4, 49 Stat. 1923.)

CHAPTER 19A—ADMIRALTY AND MARITIME JURISDICTION

Sec.
740.
Extension of admiralty and maritime jurisdiction; libel in rem or in personam; exclusive remedy; waiting period.

        

§740. Extension of admiralty and maritime jurisdiction; libel in rem or in personam; exclusive remedy; waiting period

The admiralty and maritime jurisdiction of the United States shall extend to and include all cases of damage or injury, to person or property, caused by a vessel on navigable water, notwithstanding that such damage or injury be done or consummated on land.

In any such case suit may be brought in rem or in personam according to the principles of law and the rules of practice obtaining in cases where the injury or damage has been done and consummated on navigable water: Provided, That as to any suit against the United States for damage or injury done or consummated on land by a vessel on navigable waters, the Public Vessels Act [46 App. U.S.C. 781 et seq.] or Suits in Admiralty Act [46 App. U.S.C. 741 et seq.], as appropriate, shall constitute the exclusive remedy 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: Provided further, That no suit shall be filed against the United States until there shall have expired a period of six months after the claim has been presented in writing to the Federal agency owning or operating the vessel causing the injury or damage.

(June 19, 1948, ch. 526, 62 Stat. 496.)

References in Text

The Public Vessels Act, referred to in text, is act Mar. 3, 1925, ch. 428, 43 Stat. 1112, as amended, which is classified generally to chapter 22 (§781 et seq.) of this Appendix. For complete classification of this Act to the Code, see Short Title note set out under section 781 of this Appendix and Tables.

The Suits in Admiralty Act, referred to in text, is act Mar. 9, 1920, ch. 95, 41 Stat. 525, as amended, which is classified generally to chapter 20 (§741 et seq.) of this Appendix. For complete classification of this Act to the Code, see Short Title note set out under section 741 of this Appendix and Tables.

The Federal Tort Claims Act, referred to in text, is classified generally to section 1346(b) and chapter 171 (§2671 et seq.) of Title 28, Judiciary and Judicial Procedure.

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

CHAPTER 20—SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF UNITED STATES

Sec.
741.
Exemption of United States vessels and cargoes from arrest or seizure.
742.
Libel in personam.
743.
Procedure in cases of libel in personam.
743a.
Omitted.
744.
Release of privately owned vessel after seizure.
745.
Causes of action for which suits may be brought; limitations; exceptions; actions which may not be revived; interest on claims.
746.
Exemptions and limitations of liability.
747.
Seizures in foreign jurisdictions.
748.
Payment of judgment, award, or settlement.
749.
Arbitration, compromise, or settlement of claims.
750.
Recovery for salvage services by vessel or crew.
751.
Disposition of moneys recovered by United States.
752.
Reports as to awards and settlements.

        

Chapter Referred to in Other Sections

This chapter is referred to in sections 740, 782, 1247, 1292 of this Appendix; title 28 section 2680; title 41 section 603; title 42 section 2212; title 50 App. section 1291.

§741. Exemption of United States vessels and cargoes from arrest or seizure

No vessel owned by the United States or by any corporation in which the United States or its representatives shall own the entire outstanding capital stock or in the possession of the United States or of such corporation or operated by or for the United States or such corporation, and no cargo owned or possessed by the United States or by such corporation, shall after March 9, 1920, in view of the provision herein made for a libel in personam, be subject to arrest or seizure by judicial process in the United States or its possessions: Provided, That this chapter shall not apply to the Panama Canal Commission.

(Mar. 9, 1920, ch. 95, §1, 41 Stat. 525; Sept. 26, 1950, ch. 1049, §2(a)(2), 64 Stat. 1038; Sept. 27, 1979, Pub. L. 96–70, §3(b)(5), 93 Stat. 455.)

Change of Name

“Panama Canal Commission” substituted in text for “Panama Canal Company” pursuant to act Sept. 27, 1979.

“Panama Canal Company” substituted in text for “Panama Railroad Company” pursuant to act Sept. 26, 1950.

Short Title

Act Mar. 9, 1920, ch. 95, which enacted this chapter, is popularly known as the “Suits in Admiralty Act”.

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Cross References

Disposition of moneys recovered by United States, see section 751 of this Appendix.

Exemptions and limitations of liability extended to corporations described in this section, see section 746 of this Appendix.

Recovery for salvage services by vessel or crew, see section 750 of this Appendix.

Release of privately owned vessel after seizure, see section 744 of this Appendix.

Reports as to awards and settlements, see section 752 of this Appendix.

Seizures in foreign jurisdictions, see section 747 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 747 of this Appendix.

§742. Libel in personam

In cases where if such vessel were privately owned or operated, or if such cargo were privately owned or possessed, or if a private person or property were involved, a proceeding in admiralty could be maintained, any appropriate nonjury proceeding in personam may be brought against the United States or against such corporation. Such suits shall be brought in the district court of the United States for the district in which the parties so suing, or any of them, reside or have their principal place of business in the United States, or in which the vessel or cargo charged with liability is found. The libelant shall forthwith serve a copy of his libel on the United States attorney for such district and mail a copy thereof by registered mail to the Attorney General of the United States, and shall file a sworn return of such service and mailing. Such service and mailing shall constitute valid service on the United States and such corporation. In case the United States or such corporation shall file a libel in rem or in personam in any district, a cross libel in personam may be filed or a set-off claimed against the United States or such corporation with the same force and effect as if the libel had been filed by a private party. Upon application of either party the cause may, in the discretion of the court, be transferred to any other district court of the United States.

(Mar. 9, 1920, ch. 95, §2, 41 Stat. 525; Sept. 13, 1960, Pub. L. 86–770, §3, 74 Stat. 912.)

References in Text

Such corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

Amendments

1960—Pub. L. 86–770 amended first sentence by substituting “owned or possessed” for “owned and possessed” and “, any appropriate nonjury proceeding” for “at the time of the commencement of the action herein provided for, a libel”, inserting “or if a private person or property were involved” and striking out “as the case may be, provided that such vessel is employed as a merchant vessel or is a tugboat operated by such corporation” after “such corporation”.

Effective Date of 1960 Amendment

Section 4 of Pub. L. 86–770 provided in part that: “The amendment made by section 3 [amending this section] shall apply to any case or proceeding brought after the date of enactment of this Act [Sept. 13, 1960].”

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Cross References

Actions on war risk insurance claims, see section 1292 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 745, 749, 1242 of this Appendix.

§743. Procedure in cases of libel in personam

Such suits shall proceed and shall be heard and determined according to the principles of law and to the rules of practice obtaining in like cases between private parties. A decree against the United States or such corporation may include costs of suit, and when the decree is for a money judgment, interest at the rate of 4 per centum per annum until satisfied, or at any higher rate which shall be stipulated in any contract upon which such decree shall be based. Interest shall run as ordered by the court. Decrees shall be subject to appeal and revision as now provided in other cases of admiralty and maritime jurisdiction. If the libelant so elects in his libel, the suit may proceed in accordance with the principles of libels in rem wherever it shall appear that had the vessel or cargo been privately owned and possessed a libel in rem might have been maintained. Election so to proceed shall not preclude the libelant in any proper case from seeking relief in personam in the same suit. Neither the United States nor such corporation shall be required to give any bond or admiralty stipulation on any proceeding brought hereunder.

(Mar. 9, 1920, ch. 95, §3, 41 Stat. 526; Aug. 6, 1981, Pub. L. 97–31, §12(25)(A), 95 Stat. 155.)

References in Text

Such corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

Amendments

1981—Pub. L. 97–31 struck out provisions relating to bonds or stipulations given prior to Mar. 9, 1920, in admiralty causes.

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Cross References

Interest not allowed on any claim prior to time when suit is brought, see section 745 of this Appendix.

§743a. Omitted

Codification

Section, act June 30, 1932, ch. 315, 47 Stat. 420, related to interest on claims. See section 745 of this Appendix.

§744. Release of privately owned vessel after seizure

If a privately owned vessel not in the possession of the United States or of such corporation is arrested or attached upon any cause of action arising or alleged to have arisen from previous possession, ownership, or operation of such vessel by the United States or by such corporation, such vessel shall be released without bond or stipulation therefor upon the suggestion by the United States, through its Attorney General or other duly authorized law officer, that it is interested in such cause, desires such release, and assumes the liability for the satisfaction of any decree obtained by the libelant in such cause, and thereafter such cause shall proceed against the United States in accordance with the provisions of this chapter.

(Mar. 9, 1920, ch. 95, §4, 41 Stat. 526.)

References in Text

Such corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Cross References

Payment of judgment, award, or settlement, see section 748 of this Appendix.

Seizures in foreign jurisdictions, see section 747 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 747, 748, 749 of this Appendix.

§745. Causes of action for which suits may be brought; limitations; exceptions; actions which may not be revived; interest on claims

Suits as authorized by this chapter may be brought only within two years after the cause of action arises: Provided, That where a remedy is provided by this chapter it shall hereafter be exclusive of any other action by reason of the same subject matter against the agent or employee of the United States or of any incorporated or unincorporated agency thereof whose act or omission gave rise to the claim: Provided further, That the limitations contained in this section for the commencement of suits shall not bar any suit against the United States brought hereunder within one year after December 13, 1950, if such suit is based upon a cause of action whereon a prior suit in admiralty or an action at law was timely commenced and was or may hereafter be dismissed solely because improperly brought against any person, partnership, association, or corporation engaged by the United States to manage and conduct the business of a vessel owned or bareboat chartered by the United States or against the master of any such vessel: 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 unless upon a contract expressly stipulating for the payment of interest.

(Mar. 9, 1920, ch. 95, §5, 41 Stat. 526; June 30, 1932, ch. 315, 47 Stat. 420; Dec. 13, 1950, ch. 1136, 64 Stat. 1112.)

Amendments

1950—Act Dec. 13, 1950, extended time limit within which certain suits in admiralty may be brought against United States.

1932—Act June 30, 1932, amended section generally. Prior to amendment, section read as follows: “That suits as herein authorized may be brought only on causes of action arising since April 6, 1917, provided that suits based on causes of action arising prior to the taking effect of this Act shall be brought within one year after this Act goes into effect; and all other suits hereunder shall be brought within two years after the cause of action arises.”

Savings Provision

Section 5 of act Mar. 9, 1920, as amended by act June 30, 1932, also contained a saving clause in connection with certain suits instituted prior to Dec. 31, 1932.

Cross References

Actions on war risk insurance claims, see section 1292 of this Appendix.

§746. Exemptions and limitations of liability

The United States or such corporation shall be entitled to the benefits of all exemptions and of all limitations of liability accorded by law to the owners, charterers, operators, or agents of vessels.

(Mar. 9, 1920, ch. 95, §6, 41 Stat. 527.)

References in Text

Such corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

§747. Seizures in foreign jurisdictions

If any vessel or cargo within the purview of sections 741 and 744 of this Appendix is arrested, attached, or otherwise seized by process of any court in any country other than the United States, or if any suit is brought therein against the master of any such vessel for any cause of action arising from, or in connection with, the possession, operation, or ownership of any such vessel, or the possession, carriage, or ownership of any such cargo, the Secretary of State of the United States in his discretion, upon the request of the Attorney General of the United States, or any other officer duly authorized by him, may direct the United States consul residing at or nearest the place at which such action may have been commenced to claim such vessel or cargo as immune from such arrest, attachment, or other seizure, and to execute an agreement, undertaking, bond, or stipulation for and on behalf of the United States, or the Maritime Administration, or such corporation as by said court required, for the release of such vessel or cargo, and for the prosecution of any appeal; or may, in the event of such suits against the master of any such vessel, direct said United States consul to enter the appearance of the United States, or of the Maritime Administration, or of such corporation, and to pledge the credit thereof to the payment of any judgment and cost that may be entered in such suit. The Attorney General is vested with power and authority to arrange with any bank, surety company, person, firm, or corporation in the United States, its Territories and possessions, or in any foreign country, to execute any such aforesaid bond or stipulation as surety or stipulator thereon, and 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. The presentation of a copy of the judgment roll in any such suit, certified by the clerk of the court and authenticated by the certificate and seal of the United States consul claiming such vessel or cargo, or his successor, and by the certificate of the Secretary of State as to the official capacity of such consul, shall be sufficient evidence to the proper accounting officers of the United States, or of the Maritime Administration, or of such corporation, for the allowance and payment of such judgments: Provided, however, That nothing in this section shall be held to prejudice or preclude a claim of the immunity of such vessel or cargo from foreign jurisdiction in a proper case.

(Mar. 9, 1920, ch. 95, §7, 41 Stat. 527; Aug. 6, 1981, Pub. L. 97–31, §12(25)(B), 95 Stat. 155.)

References in Text

Such corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

Amendments

1981—Pub. L. 97–31 substituted “Maritime Administration” for “United States Shipping Board”, wherever appearing. For prior transfers of functions, see Transfer of Functions note below.

Transfer of Functions

For transfer of functions of United States Shipping Board, see Ex. Ord. No. 6166, set out under section 901 of Title 5, Government Organization and Employees, act June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016, and Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix.

Cross References

Payment of judgment, award, or settlement, see section 748 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 748 of this Appendix.

§748. Payment of judgment, award, or settlement

Any final judgment rendered in any suit herein authorized, and any final judgment within the purview of sections 744 and 747 of this Appendix, and any arbitration award or settlement had and agreed to under the provisions of section 749 of this Appendix, shall, upon the presentation of a duly authenticated copy thereof, be paid by the proper accounting officers of the United States out of any appropriation or insurance fund or other fund especially available therefor; otherwise there is hereby appropriated, out of any money in the Treasury of the United States not otherwise appropriated, a sum sufficient to pay any such judgment or award or settlement.

(Mar. 9, 1920, ch. 95, §8, 41 Stat. 527.)

Appropriations

Section 3 of act June 26, 1934, ch. 756, 48 Stat. 1226, which was classified to section 725b of former Title 31, Money and Finance, provided in part that, effective July 1, 1935, the permanent or continuing appropriation accounts “Judgments in admiralty suits under Act of March 9, 1920 [46 App. U.S.C. 748], War Department (8x143)” and “Judgments in admiralty suits under Act of March 9, 1920 [46 App. U.S.C. 748], United States Shipping Board (0x556)” are abolished, and any unobligated balances in such accounts are covered into the Treasury; and that any claims accruing on and after July 1, 1935, which, but for this section would have been charged to these appropriation titles, shall, upon proper audit, be certified to Congress for appropriation from the general fund of the Treasury, which is authorized.

§749. Arbitration, compromise, or settlement of claims

The Secretary of any department of the Government of the United States, or the board of trustees of such corporation, are, and each is, authorized to arbitrate, compromise, or settle any claim in which suit will lie under the provisions of sections 742, 744, and 750 of this Appendix.

(Mar. 9, 1920, ch. 95, §9, 41 Stat. 527; Aug. 29, 1972, Pub. L. 92–417, §3, 86 Stat. 656; Aug. 6, 1981, Pub. L. 97–31, §12(25)(C), 95 Stat. 155.)

References in Text

Such corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

Amendments

1981—Pub. L. 97–31 struck out reference to the United States Shipping Board.

1972—Pub. L. 92–417 struck out “having control of the possession or operation of any merchant vessel” before “are, and each is”.

Cross References

Payment of judgment, award, or settlement, see section 748 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 748 of this Appendix.

§750. Recovery for salvage services by vessel or crew

The United States, and the crew of any merchant vessel owned or operated by the United States, or such corporation, shall have the right to collect and sue for salvage services rendered by such vessel and crew, and any moneys recovered therefrom by the United States for its own benefit, and not for the benefit of the crew, shall be covered into the United States Treasury to the credit of the department of the Government of the United States, or of such corporation, having control of the possession or operation of such vessel.

(Mar. 9, 1920, ch. 95, §10, 41 Stat. 528; Aug. 6, 1981, Pub. L. 97–31, §12(25)(D), 95 Stat. 155.)

References in Text

Such corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

Amendments

1981—Pub. L. 97–31 struck out reference to the United States Shipping Board.

Section Referred to in Other Sections

This section is referred to in section 749 of this Appendix.

§751. Disposition of moneys recovered by United States

All moneys recovered in any suit brought by the United States on any cause of action arising from, or in connection with, the possession, operation, or ownership of any merchant vessel, or the possession, carriage, or ownership of any cargo, shall be covered into the United States Treasury to the credit of the department of the Government of the United States, or of such aforesaid corporation, having control of the vessel or cargo with respect to which such cause of action arises, for reimbursement of the appropriation, or insurance fund, or other funds, from which the loss, damage, or compensation for which said judgment was recovered has been or will be paid.

(Mar. 9, 1920, ch. 95, §11, 41 Stat. 528; Aug. 6, 1981, Pub. L. 97–31, §12(25)(D), 95 Stat. 155.)

References in Text

Such aforesaid corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

Amendments

1981—Pub. L. 97–31 struck out reference to the United States Shipping Board.

§752. Reports as to awards and settlements

The Secretary of any department of the Government of the United States, and the board of trustees of any such aforesaid corporation, shall report to the Congress at each session thereof the arbitration awards or settlements of claims which shall have been agreed to under this chapter since the previous session, and in which the time to appeal shall have expired or have been waived.

(Mar. 9, 1920, ch. 95, §12, 41 Stat. 528; Aug. 30, 1954, ch. 1076, §1(26), 68 Stat. 968; Aug. 6, 1981, Pub. L. 97–31, §12(25)(E), 95 Stat. 155.)

References in Text

Such aforesaid corporation, referred to in text, probably means a corporation mentioned in section 741 of this Appendix.

Amendments

1981—Pub. L. 97–31 struck out reference to the United States Shipping Board.

1954—Act Aug. 30, 1954, repealed provisions requiring the Attorney General to make an annual report to Congress of all suits under this chapter in which final judgment was rendered for or against the United States and the corporations mentioned in section 741 of this Appendix.

CHAPTER 21—DEATH ON HIGH SEAS BY WRONGFUL ACT

Sec.
761.
Right of action; where and by whom brought.
762.
Amount and apportionment of recovery.
763a.
Limitations.
764.
Rights of action given by laws of foreign countries.
765.
Death of plaintiff pending action.
766.
Contributory negligence.
767.
Exceptions from operation of chapter.
768.
Omitted.

        

§761. Right of action; where and by whom brought

Whenever the death of a person shall be caused by wrongful act, neglect, or default occurring on the high seas beyond a marine league from the shore of any State, or the District of Columbia, or the Territories or dependencies of the United States, the personal representative of the decedent may maintain a suit for damages in the district courts of the United States, in admiralty, for the exclusive benefit of the decedent's wife, husband, parent, child, or dependent relative against the vessel, person, or corporation which would have been liable if death had not ensued.

(Mar. 30, 1920, ch. 111, §1, 41 Stat. 537.)

Short Title

Act Mar. 30, 1920, ch. 111, which enacted this chapter, is popularly know as the “Death on the High Seas Act”.

Cross References

Death of plaintiff pending action, see section 765 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 765 of this Appendix.

§762. Amount and apportionment of recovery

The recovery in such suit shall be a fair and just compensation for the pecuniary loss sustained by the persons for whose benefit the suit is brought and shall be apportioned among them by the court in proportion to the loss they may severally have suffered by reason of the death of the person by whose representative the suit is brought.

(Mar. 30, 1920, ch. 111, §2, 41 Stat. 537.)

Cross References

Death of plaintiff pending action, see section 765 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 765 of this Appendix.

§763a. Limitations

Unless otherwise specified by law, a suit for recovery of damages for personal injury or death, or both, arising out of a maritime tort, shall not be maintained unless commenced within three years from the date the cause of action accrued.

(Pub. L. 96–382, §1, Oct. 6, 1980, 94 Stat. 1525.)

Codification

Section was not enacted as part of act Mar. 30, 1920, known as the Death on the High Seas Act, which comprises this chapter.

§764. Rights of action given by laws of foreign countries

Whenever a right of action is granted by the law of any foreign State on account of death by wrongful act, neglect, or default occurring upon the high seas, such right may be maintained in an appropriate action in admiralty in the courts of the United States without abatement in respect to the amount for which recovery is authorized, any statute of the United States to the contrary notwithstanding.

(Mar. 30, 1920, ch. 111, §4, 41 Stat. 537.)

§765. Death of plaintiff pending action

If a person die 1 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, the personal representative of the decedent may be substituted as a party and the suit may proceed as a suit under this chapter for the recovery of the compensation provided in section 762 of this Appendix.

(Mar. 30, 1920, ch. 111, §5, 41 Stat. 537.)

1 So in original. Probably should be “dies”.

§766. Contributory negligence

In suits under this chapter the fact that the decedent has been guilty of contributory negligence shall not bar recovery, but the court shall take into consideration the degree of negligence attributable to the decedent and reduce the recovery accordingly.

(Mar. 30, 1920, ch. 111, §6, 41 Stat. 537.)

§767. Exceptions from operation of chapter

The provisions of any State statute giving or regulating rights of action or remedies for death shall not be affected by this chapter. Nor shall this chapter apply to the Great Lakes or to any waters within the territorial limits of any State, or to any navigable waters in the Panama Canal Zone.

(Mar. 30, 1920, ch. 111, §7, 41 Stat. 538.)

References in Text

For definition of Canal Zone, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Intercourse.

§768. Omitted

Codification

Section, act Mar. 30, 1920, ch. 111, §8, 41 Stat. 538, provided that this chapter should not affect suits pending on Mar. 30, 1920.

CHAPTER 22—SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES

Sec.
781.
Libel in admiralty against or impleader of United States.
782.
Venue of suit; application of provisions of chapter 20.
783.
Cross libel, set-off, or counterclaim.
784.
Subpoenas to officers or members of crews.
785.
Suits by nationals of foreign governments.
786.
Arbitration, compromise, or settlement.
787.
Payment of judgments or settlements.
788.
Lien not created against public vessels.
789.
Exemptions and limitations of liability.
790.
Reports by Attorney General.

        

Cross References

Stay of judicial proceedings, see section 7721 et seq. of Title 10, Armed Forces.

Chapter Referred to in Other Sections

This chapter is referred to in section 740 of this Appendix; title 10 section 7721; title 28 section 2680; title 41 section 603; title 42 section 2212.

§781. Libel in admiralty against or impleader of United States

A libel in personam in admiralty may be brought against the United States, or a petition impleading the United States, for damages caused by a public vessel of the United States, and for compensation for towage and salvage services, including contract salvage, rendered to a public vessel of the United States: Provided, That the cause of action arose after the 6th day of April, 1920.

(Mar. 3, 1925, ch. 428, §1, 43 Stat. 1112.)

Short Title

Act Mar. 3, 1925, ch. 428, which enacted this chapter, is popularly known as the “Public Vessels Act”.

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

§782. Venue of suit; application of provisions of chapter 20

Such suit shall be brought in the district court of the United States for the district in which the vessel or cargo charged with creating the liability is found within the United States, or if such vessel or cargo be outside the territorial waters of the United States, then in the district court of the United States for the district in which the parties so suing, or any of them, reside or have an office for the transaction of business in the United States; or in case none of such parties reside or have an office for the transaction of business in the United States, and such vessel or cargo be outside the territorial waters of the United States, then in any district court of the United States. Such suits shall be subject to and proceed in accordance with the provisions of chapter 20 of this Appendix or any amendment thereof, insofar as the same are not inconsistent herewith, except that no interest shall be allowed on any claim up to the time of the rendition of judgment unless upon a contract expressly stipulating for the payment of interest.

(Mar. 3, 1925, ch. 428, §2, 43 Stat. 1112.)

§783. Cross libel, set-off, or counterclaim

In the event of the United States filing a libel in rem or in personam in admiralty for damages caused by a privately owned vessel, the owner of such vessel, or his successors in interest, may file a cross libel in personam or claim a set-off or counterclaim against the United States in such suit for and on account of any damages arising out of the same subject matter or cause of action: Provided, That whenever a cross libel is filed for any cause of action for which the original libel is filed by authority of this chapter, the respondent in the cross libel shall give security in the usual amount and form to respond to the claim set forth in said cross libel unless the court, for cause shown, shall otherwise direct; and all proceedings on the original libel shall be stayed until such security shall be given.

(Mar. 3, 1925, ch. 428, §3, 43 Stat. 1112.)

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

§784. Subpoenas to officers or members of crews

No officer or member of the crew of any public vessel of the United States may be subpoenaed in connection with any suit authorized under this chapter without the consent of the Secretary of the department or the head of any independent establishment of the Government having control of the vessel at the time the cause of action arose, or of the master or commanding officer of such vessel at the time of the issuance of such subpoena.

(Mar. 3, 1925, ch. 428, §4, 43 Stat. 1112.)

§785. Suits by nationals of foreign governments

No suit may be brought under this chapter by a national of any foreign government unless it shall appear to the satisfaction of the court in which suit is brought that said government, under similar circumstances, allows nationals of the United States to sue in its courts.

(Mar. 3, 1925, ch. 428, §5, 43 Stat. 1113.)

§786. Arbitration, compromise, or settlement

The Attorney General of the United States is authorized to arbitrate, compromise, or settle any claim on which a libel or cross libel would lie under the provisions of this chapter, and for which a libel or cross libel has actually been filed.

(Mar. 3, 1925, ch. 428, §6, 43 Stat. 1113.)

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Section Referred to in Other Sections

This section is referred to in section 787 of this Appendix.

§787. Payment of judgments or settlements

Any final judgment rendered on any libel or cross libel herein authorized, and any settlement had and agreed to under the provisions of section 786 of this Appendix, shall, upon presentation of a duly authenticated copy thereof, be paid by the proper accounting officer of the United States out of any moneys in the Treasury of the United States appropriated therefor by Congress.

(Mar. 3, 1925, ch. 428, §7, 43 Stat. 1113.)

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

§788. Lien not created against public vessels

Nothing contained in this chapter shall be construed to recognize the existence of or as creating a lien against any public vessel of the United States.

(Mar. 3, 1925, ch. 428, §8, 43 Stat. 1113.)

§789. Exemptions and limitations of liability

The United States shall be entitled to the benefits of all exemptions and of all limitations of liability accorded by law to the owners, charterers, operators or agents of vessels.

(Mar. 3, 1925, ch. 428, §9, 43 Stat. 1113.)

§790. Reports by Attorney General

The Attorney General of the United States shall report to the Congress at each session thereof all claims which shall have been settled under this chapter.

(Mar. 3, 1925, ch. 428, §10, 43 Stat. 1113; Aug. 30, 1954, ch. 1076, §1(26), 68 Stat. 968.)

Amendments

1954—Act Aug. 30, 1954, repealed provisions requiring the Attorney General also to make annual reports to Congress of all suits in which final judgment was rendered under this chapter.

CHAPTER 23—SHIPPING ACT

Sec.
801.
Definitions.
802.
Corporation, partnership, or association as citizen.
(a)
Ownership of controlling interest.
(b)
Determination of controlling interest.
(c)
Determination of seventy-five per centum of interest.
803.
Applicability of chapter to receivers and trustees.
804a.
Omitted.
808.
Registration, enrollment, and licensing of vessels purchased, chartered, or leased; unlawful transactions; penalties.
(a)
Repealed.
(b)
Necessity of registration, etc., for operation; laws, regulations, and liabilities applicable.
(c)
Sale, mortgage, lease, etc., to foreign persons; foreign registry or operation.
(d)
Validity of unlawful charter, sale, etc.; penalties.
808a.
Sale, chartering, leasing, mortgaging or transferring of documented vessels without approval of Secretary.
811.
Investigations as to cost of merchant vessels.
817d.
Financial responsibility of owners and charterers for death or injury to passengers or other persons.
(a)
Amount; method of establishment.
(b)
Issuance of bond when filed with Commission.
(c)
Civil penalties for violations; remission or mitigation of penalties.
(d)
Rules and regulations.
(e)
Refusal of departure clearance.
817e.
Financial responsibility for indemnification of passengers for nonperformance of transportation.
(a)
Filing of information or bond with Commission.
(b)
Issuance of bond when filed with Commission; amount of bond.
(c)
Civil penalties for violations; remission or mitigation of penalties.
(d)
Rules and regulations.
(e)
Refusal of departure clearance.
833.
Partial invalidity of chapter as not affecting remainder.
834.
Refusal of clearance to vessel refusing to accept freight.
835.
Restrictions on transfer of shipping facilities during war or national emergency.
836.
Forfeitures.
837.
Prima facie evidence.
839.
Approvals by Secretary.
842.
Short title.

        

Repeals

Subtitle IV (§10101 et seq.) of Title 49, Transportation (containing the codification of part III of the Interstate Commerce Act, as added by Act Sept. 18, 1940, ch. 722, title II, §201, 54 Stat. 929, which was classified to sections 901 to 923 of former Title 49), provides for the regulation of rates and services of water carriers by the Interstate Commerce Commission, thereby substantially superseding certain sections of this and the following chapters. In this connection section 920(a)–(d) of former Title 49 provided:

“(a) The Shipping Act of 1916, as amended [section 801 et seq. of this Appendix], and the Intercoastal Shipping Act, 1933, as amended [section 843 et seq. of this Appendix], are repealed insofar as they are inconsistent with any provision of this chapter [section 901 et seq. of former Title 49, Transportation] and insofar as they provide for the regulation of, or the making of agreements relating to, transportation of persons or property by water in commerce which is within the jurisdiction of the Commission under the provisions of this chapter; and any other provisions of law are hereby repealed insofar as they are inconsistent with any provision of this chapter.

“(b) Nothing in subsection (a) of this section shall be construed to repeal—

“(1) section 1115 of Title 46 [46 App. U.S.C. 1115], or any provision of law providing penalties for violations of said section;

“(2) the third sentence of section 844 of Title 46 [46 App. U.S.C. 844], as extended by section 845b of Title 46 [46 App. U.S.C. 845b], or any provision of law providing penalties for violations of section 844 of Title 46;

“(3) the provisions of the Shipping Act of 1916, as amended [section 801 et seq. of this Appendix], insofar as such Act provides for the regulation of persons included within the term ‘other person subject to this Act’, as defined in such Act;

“(4) sections 883 and 884 of Title 46 [46 App. U.S.C. 883, 884].

“(c) Nothing in subsection (a) of this section shall be construed to affect the provisions of section 814 of Title 46 [46 App. U.S.C. 814] so as to prevent any water carrier subject to the provisions of this chapter from entering into any agreement under the provisions of said section with respect to transportation not subject to the provisions of this chapter in which such carrier may be engaged.

“(d) Nothing in this chapter shall be construed to affect any law of navigation, the admiralty jurisdiction of the courts of the United States, liabilities of vessels and their owners for loss or damage, or laws respecting seamen, or any other maritime law, regulation, or custom not in conflict with the provisions of this chapter.”

Chapter Referred to in Other Sections

This chapter is referred to in sections 1114, 1183, 1308, 1309, 1704, 1707a of this Appendix.

§801. Definitions

When used in this chapter:

The term “common carrier by water in interstate commerce” means a common carrier engaged in the transportation by water of passengers or property on the high seas or the Great Lakes on regular routes from port to port between one State, Territory, District, or possession of the United States and any other State, Territory, District, or possession of the United States, or between places in the same Territory, District, or possession.

The term “other person subject to this chapter” means any person not included in the term “common carrier by water in interstate commerce,” carrying on the business of forwarding or furnishing wharfage, dock, warehouse, or other terminal facilities in connection with a common carrier by water in interstate commerce.

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.

The term “vessel” includes all water craft and other artificial contrivances of whatever description and at whatever stage of construction, whether on the stocks or launched, which are used or are capable of being or are intended to be used as a means of transportation on water.

The term “documented under the laws of the United States,” means “registered, enrolled, or licensed under the laws of the United States.”

The term “carrying on the business of forwarding” means the dispatching of shipments by any person on behalf of others, by ocean-going common carriers in commerce between the United States and its Territories or possessions, or between such Territories and possessions, and handling the formalities incident to such shipments.

The term “maritime labor agreement” means any collective bargaining agreement between an employer subject to this chapter, or group of such employers and a labor organization representing employees in the maritime or stevedoring industry, or any agreement preparatory to such a collective bargaining agreement among members of a multiemployer bargaining group, or any agreement specifically implementing provisions of such a collective bargaining agreement or providing for the formation, financing, or administration of a multiemployer bargaining group.

(Sept. 7, 1916, ch. 451, §1, 39 Stat. 728; July 15, 1918, ch. 152, §1, 40 Stat. 900; Sept. 19, 1961, Pub. L. 87–254, §1, 75 Stat. 522; Oct. 18, 1978, Pub. L. 95–483, §2, 92 Stat. 1607; Aug. 8, 1980, Pub. L. 96–325, §2, 94 Stat. 1021; Aug. 13, 1981, Pub. L. 97–35, title XVI, §1608(a), (c), 95 Stat. 752, as amended Dec. 6, 1983, Pub. L. 98–210, §6, 97 Stat. 1410; Mar. 20, 1984, Pub. L. 98–237, §20(a), (b)(1), 98 Stat. 89; Oct. 30, 1984, Pub. L. 98–595, §3(a)(1), 98 Stat. 3132.)

Amendments

1984—Pub. L. 98–595, §3(a)(1)(C), struck out “from the United States, its Territories, or possessions to foreign countries, or” before “between the United States and” in definition of “carrying on the business or forwarding”.

Pub. L. 98–595, §3(a)(1)(B), substituted “common carrier by water in interstate commerce” for “common carrier by water” in two places in definition of “other person subject to this chapter”.

Pub. L. 98–595, §3(a)(1)(A), struck out definitions of “common carrier by water in foreign commerce” and “common carrier by water”.

Pub. L. 98–237 struck out definitions of “controlled carrier” and “independent ocean freight forwarder”. See sections 1702(8), 1702(19), 1708, and 1718 of this Appendix.

1981—Pub. L. 97–35, §1608(a), amended generally definition of “independent ocean freight forwarder” striking out provision that the person not have any beneficial interest therein nor directly or indirectly controls or is controlled by such shipper or consignee or by any person having such a beneficial interest.

Pub. L. 97–35, §1608(c), which amended generally definition of “independent ocean freight forwarder” restoring provisions relating to persons having beneficial interests, effective after Dec. 31, 1983, was repealed by Pub. L. 98–210.

1980—Pub. L. 96–325 inserted definition of “maritime labor agreement”.

1978—Pub. L. 95–483 inserted definition of “controlled carrier”.

1961—Pub. L. 87–254 inserted definitions of “carrying on the business of forwarding” and “independent ocean freight forwarder”.

1918—Act July 15, 1918, inserted definitions of “vessel” and “documented under the laws of the United States”.

Effective and Termination Dates of 1981 Amendment

Section 1608(c) of Pub. L. 97–35 which provided in part that section 1608 [amending this section and section 841b of this Appendix and enacting provisions set out as a note under this section] shall remain in effect until Dec. 31, 1983, was repealed by Pub. L. 98–210, §6, Dec. 6, 1983, 97 Stat. 1410, and Pub. L. 98–237, §20(a), Mar. 20, 1984, 98 Stat. 89.

Effective Date of 1978 Amendment

Section 4 of Pub. L. 95–483 provided that: “The provisions of this Act, including the amendments made by this Act [amending this section and section 817 of this Appendix and enacting a provision set out as a note under section 842 of this Appendix], shall become effective thirty days after its date of enactment [Oct. 18, 1978].”

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

Section 1608 of Pub. L. 97–35, cited as a credit to this section, was repealed by section 20(a) of Pub. L. 98–237.

Savings Provision

Amendment by Pub. L. 98–237 not to affect suits filed before Mar. 20, 1984, or claims arising out of conduct engaged in before Mar. 20, 1984, and filed within 1 year after that date; and agreements, contracts, modifications, and exemptions approved or licenses issued by the Federal Maritime Commission prior to Mar. 20, 1984, to continue as if approved or issued under chapter 36 (§1701 et seq.) of this Appendix, but new agreements, contracts, and modifications to existing, pending, or new contracts or agreements to be considered under chapter 36 of this Appendix, see section 1719 of this Appendix.

Report to Congress on Enforceability and Need

Section 1608(c) of Pub. L. 97–35 in part directed Federal Maritime Commission, by June 1, 1983, to submit a report to Congress evaluating enforceability of this section [amending sections 801 and 841b of this Appendix] and describing any reasons why this section should not be made permanent law, prior to repeal by Pub. L. 98–210, §6, Dec. 6, 1983, 97 Stat. 1410, and Pub. L. 98–237, §20(a), Mar. 20, 1984, 98 Stat. 89.

Section Referred to in Other Sections

This section is referred to in section 888 of this Appendix.

§802. Corporation, partnership, or association as citizen

(a) Ownership of controlling interest

Within the meaning of this chapter no corporation, partnership, or association shall be deemed a citizen of the United States unless the controlling interest therein is owned by citizens of the United States, and, in the case of a corporation, unless its president or other chief executive officer and the chairman of its board of directors are citizens of the United States and unless no more of its directors than a minority of the number necessary to constitute a quorum are noncitizens and the corporation itself is organized under the laws of the United States or of a State, Territory, District, or possession thereof, but in the case of a corporation, association, or partnership operating any vessel in the coastwise trade the amount of interest required to be owned by citizens of the United States shall be 75 per centum.

(b) Determination of controlling interest

The controlling interest in a corporation shall not be deemed to be owned by citizens of the United States (a) if the title to a majority of the stock thereof is not vested in such citizens free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; or (b) if the majority of the voting power in such corporation is not vested in citizens of the United States; or (c) if through any contract or understanding it is so arranged that the majority of the voting power may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; or, (d) if by any other means whatsoever control of the corporation is conferred upon or permitted to be exercised by any person who is not a citizen of the United States.

(c) Determination of seventy-five per centum of interest

Seventy-five per centum of the interest in a corporation shall not be deemed to be owned by citizens of the United States (a) if the title to 75 per centum of its stock is not vested in such citizens free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; or (b) if 75 per centum of the voting power in such corporation is not vested in citizens of the United States; or (c) if, through any contract or understanding, it is so arranged that more than 25 per centum of the voting power in such corporation may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; or (d) if by any other means whatsoever control of any interest in the corporation in excess of 25 per centum is conferred upon or permitted to be exercised by any person who is not a citizen of the United States.

(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; Sept. 21, 1959, Pub. L. 86–327, §3, 73 Stat. 597.)

Codification

Section comprises subsecs. (a) to (c) of section 2 of act Sept. 7, 1916, as amended. Subsec. (d) of section 2 of the act is classified to section 803 of this Appendix.

Amendments

1959—Subsec. (a). Pub. L. 86–327 redefined citizenship qualification for corporations by substituting requirement that the president or other chief executive officer and the chairman of the board of directors be United States citizens and that no more of the directors than a minority of the number necessary to constitute a quorum be noncitizens for requirement that the president and managing directors be United States citizens.

1920—Act June 5, 1920, added par. relating to percentage of corporate interest required to be owned by United States citizens and provisions of first par. concerning vessels in coastwise trade, and designated existing paragraphs as subsecs. (a) to (d).

1918—Act July 15, 1918, added par. relating to requirements for determining controlling interest.

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 292, 883, 883–1, 888, 891u, 1244, 1271 of this Appendix; title 15 sections 144, 713c–3, 2509; title 16 section 742c; title 28 section 2342; title 30 sections 185, 1522; title 42 section 5919; title 46 sections 12102, 12106, 31322, 31328; title 50 App. section 1736.

§803. Applicability of chapter to receivers and trustees

The provisions of this chapter shall apply to receivers and trustees of all persons to whom the chapter applies, and to the successors or assignees of such persons.

(Sept. 7, 1916, ch. 451, §2(d), 39 Stat. 729; July 15, 1918, ch. 152, §2, 40 Stat. 900; June 5, 1920, ch. 250, §38, 41 Stat. 1008.)

Codification

Section comprises subsec. (d) of section 2 of act Sept. 7, 1916, as amended. Subsecs. (a) to (c) of section 2 of the act are classified to section 802 of this Appendix.

Acts July 15, 1918, and June 5, 1920, made no change in this provision of the act Sept. 7, 1916, except that it was designated subsec. (d) by section 38 of act June 5, 1920. See Codification note set out under section 802 of this Appendix.

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 292, 888 of this Appendix; title 28 section 2342; title 46 section 12106.

§804a. Omitted

Codification

Section, act June 30, 1932, ch. 314, §306, 47 Stat. 408, which reorganized the United States Shipping Board, was omitted in view of abolishment of Board by Ex. Ord. No. 6166, §12, eff. June 10, 1933, set out as a note under section 901 of Title 5, Government Organization and Employees.

Section was not enacted as part of the Shipping Act, 1916 which comprises this chapter.

§808. Registration, enrollment, and licensing of vessels purchased, chartered, or leased; unlawful transactions; penalties

(a) Repealed. Pub. L. 101–225, title III, §307(3), Dec. 12, 1989, 103 Stat. 1925

(b) Necessity of registration, etc., for operation; laws, regulations, and liabilities applicable

Every vessel purchased, chartered, or leased from the Secretary of Transportation shall, unless otherwise authorized by the Secretary of Transportation, be operated only under such registry or enrollment and license. Such vessels while employed solely as merchant vessels shall be subject to all laws, regulations, and liabilities governing merchant vessels, whether the United States be interested therein as owner, in whole or in part, or hold any mortgage, lien, or other interest therein.

(c) Sale, mortgage, lease, etc., to foreign persons; foreign registry or operation

Except as provided in section 1181 of this Appendix and sections 31322(a)(1)(D) and 31328 of title 46, a person may not, without the approval of the Secretary of Transportation—

(1) sell, mortgage, lease, charter, deliver, or in any manner transfer, or agree to sell, mortgage, lease, charter, deliver, or in any manner transfer, to a person not a citizen of the United States, any interest in or control of a documented vessel (except in a vessel that has been operated only as a fishing vessel, fish processing vessel, or fish tender vessel (as defined in section 2101 of title 46) or in a vessel that has been operated only for pleasure) owned by a citizen of the United States or the last documentation of which was under the laws of the United States; or

(2) place a documented vessel, or a vessel the last documentation of which was under the laws of the United States, under foreign registry or operate that vessel under the authority of a foreign country.

(d) Validity of unlawful charter, sale, etc.; penalties

(1) Any charter, sale, transfer, or mortgage of a vessel, or interest in or control of that vessel, contrary to this section is void.

(2) A person that knowingly charters, sells, transfers, or mortgages a vessel, or interest in or control of that vessel, contrary to this section shall be fined under title 18, imprisoned for not more than 5 years, or both.

(3) A documented vessel may be seized by, and forfeited to, the United States Government if—

(A) the vessel is placed under foreign registry or operated under the authority of a foreign country contrary to this section; or

(B) a person knowingly charters, sells, transfers, or mortgages a vessel, or interest or control in that vessel, contrary to this section.


(4) A person that charters, sells, transfers, or mortgages 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.

(Sept. 7, 1916, ch. 451, §9, 39 Stat. 730; July 15, 1918, ch. 152, §3, 40 Stat. 900; 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; June 23, 1938, ch. 600, §42, 52 Stat. 964; Nov. 8, 1965, Pub. L. 89–346, §1, 79 Stat. 1305; Aug. 6, 1981, Pub. L. 97–31, §12(26), 95 Stat. 155; Nov. 23, 1988, Pub. L. 100–710, title I, §104(b), 102 Stat. 4750; Dec. 12, 1989, Pub. L. 101–225, title III, §§304(a), 307(3), 103 Stat. 1924, 1925.)

Amendments

1989—Subsec. (a). Pub. L. 101–225, §307(3), struck out subsec. (a) which related to registration, enrollment, and licensing of vessels purchased, chartered, or leased as United States vessels and authorization of vessels to engage in the coastwise trade of the United States.

Subsec. (c)(1). Pub. L. 101–225, §304(a), inserted “or the last documentation of which was under the laws of the United States” before semicolon at end.

Subsec. (c)(2). Pub. L. 101–225, §304(a)(2), inserted “, or a vessel the last documentation of which was under the laws of the United States,” after “a documented vessel”.

Subsec. (d)(1), (2). Pub. L. 101–225, §304(a)(3), substituted “in or control of” for “or control in”.

Subsec. (d)(4). Pub. L. 101–225, §304(a)(4), added par. (4).

1988—Subsecs. (a), (b). Pub. L. 100–710, §104(b)(1), (2), designated first and second undesignated pars. as subsecs. (a) and (b), respectively.

Subsecs. (c), (d). Pub. L. 100–710, §104(b)(3), substituted subsecs. (c) and (d) for third, fourth, and fifth undesignated pars. which prohibited, without approval, sale, mortgage, lease, etc., to a person not a citizen of the United States, or transfer under foreign registry or flag, of vessel owned or documented under laws of United States and issuance, transfer, or assignment of bond or note secured by vessel without approval and which set forth qualifications for approval and penalties for violations of this section. Fourth undesignated par. restated in section 31328 of Title 46, Shipping.

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “United States Maritime Commission”, “Commission”, and “Secretary of Commerce” wherever appearing. For prior transfers of functions, see Transfer of Functions note below.

1965—Pub. L. 89–346 made it unlawful to issue, transfer, or assign a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction, to a person not a citizen of the United States, without the approval of the Secretary of Commerce, unless the trustee or a substitute trustee of such mortgage or assignment is approved by the Secretary of Commerce, required the Secretary to grant his approval if such trustee or substitute trustee is a bank or trust company which meets certain specified qualifications and to disapprove such trustee or substitute trustee if at any time he ceases to meet such qualifications, made it unlawful to transfer or assign such bond, note, or other evidence of indebtedness to a person not a citizen of the United States, without the approval of the Secretary, after such disapproval, prohibited the trustee or substitute trustee approved by the Secretary to operate the vessel under the mortgage or assignment without approval of the Secretary, and voided the issuance, transfer, or assignments of bonds, notes, or other evidences of indebtedness if issued, transferred, or assigned to a person not a citizen of United States in violation of this section.

1938—Act June 23, 1938, amended last two pars. generally.

1920—Act June 5, 1920, amended section generally.

1918—Act July 15, 1918, amended section generally.

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–710 effective Jan. 1, 1989, with certain exceptions and qualifications, and not applicable to any change in control resulting from, or which may at any time result from, any proposed plan of reorganization filed under United States bankruptcy laws prior to Nov. 23, 1988, except that transactions undertaken as a result of such plan shall continue to be governed by this section as it existed prior to Nov. 23, 1988, to the extent that this section would have governed such transactions, see section 107 of Pub. L. 100–710, set out as an Effective Date note under section 30101 of Title 46, Shipping.

Retroactive Provisions

Section 4 of Pub. L. 89–346 provided that: “Bonds, notes, and other evidence of indebtedness which are secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction which have heretofore been issued, transferred, or assigned, or are issued, transferred, or assigned within one year after the enactment of this Act [Nov. 8, 1965], to a person not a citizen of the United States without the approval of the Secretary of Commerce are valid in the hands of such person and the validity and preferred status of such mortgage and the validity and lawfulness of such issuance, transfer, or assignment shall not be affected by such issuance, transfer, or assignment if the trustee or a substitute trustee is approved by the Secretary of Commerce within one year after enactment of this Act [Nov. 8, 1965], under the standards for trustees specified in the amendments made by this Act to sections 9 and 37 of the Shipping Act, 1916 [sections 808 and 835 of this Appendix], and to subsection O of the Ship Mortgage Act, 1920 [section 961 of this Appendix].

“Nothing in this section shall be construed to alter retroactively any rights which were the subject matter of litigation pending on the date of enactment of this Act [Nov. 8, 1965].”

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

Transfer of Functions

“United States Maritime Commission” substituted in text for “United States Shipping Board”. For dissolution of Board and transfer of its functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix.

Cross References

Corporation meeting certain conditions deemed citizens for purposes of this section, see section 883–1 of this Appendix.

Definition of enrollment, license, or register with respect to vessel documentation, see section 12101 of Title 46, Shipping.

Documentation of foreign merchant vessels acquired under emergency authority, see section 198 of Title 50, War and National Defense.

Section Referred to in Other Sections

This section is referred to in sections 808a, 839, 865a, 883, 883–1, 1160 of this Appendix; title 28 section 2342; title 46 sections 12111, 31306; title 50 section 198.

§808a. Sale, chartering, leasing, mortgaging or transferring of documented vessels without approval of Secretary

A vessel that is or was last documented under chapter 121 of title 46 may be sold, chartered, leased, mortgaged, or transferred by any other means to a citizen of the United States (as defined in section 2101 of that title) without the approval of the Secretary of Transportation under section 808 of this Appendix.

(Pub. L. 98–454, title III, §302, Oct. 5, 1984, 98 Stat. 1734.)

Codification

Section was not enacted as part of the Shipping Act, 1916, which comprises this chapter.

§811. Investigations as to cost of merchant vessels

The Secretary of Transportation shall investigate the relative cost of building merchant vessels in the United States and in foreign maritime countries, and the relative cost, advantages, and disadvantages of operating in the foreign trade vessels under United States registry and under foreign registry. The Secretary shall examine the rules under which vessels are constructed abroad and in the United States, and the methods of classifying and rating same, and the Secretary shall 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 ascertain what steps may be necessary to develop an ample marine insurance system as an aid in the development of an American merchant marine. The Secretary shall examine the navigation laws of the United States and the rules and regulations thereunder, and make such recommendations to the Congress as the Secretary deems proper for the amendment, improvement, and revision of such laws, and for the development of the American merchant marine. The Secretary shall investigate the legal status of mortgage loans on vessel property, with a view to means of improving the security of such loans and of encouraging investment in American shipping.

The Secretary shall, on or before the 1st day of December in each year, make a report to the Congress, which shall include his recommendations and the results of his investigations, a summary of his transactions, and a statement of all expenditures and receipts under this chapter, 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.

(Sept. 7, 1916, ch. 451, §12, 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; Aug. 6, 1981, Pub. L. 97–31, §12(27), 95 Stat. 155.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission”, “The Secretary” for “It”, “the Secretary” for “it”, and “his” for “its” wherever appearing. For prior transfers of functions, see Transfer of Functions note below.

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166, and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§817d. Financial responsibility of owners and charterers for death or injury to passengers or other persons

(a) Amount; method of establishment

Each owner or charterer of an American or foreign vessel having berth or stateroom accommodations for fifty or more passengers, and embarking passengers at United States ports, shall establish, under regulations prescribed by the Federal Maritime Commission, his financial responsibility to meet any liability he may incur for death or injury to passengers or other persons on voyages to or from United States ports, in an amount based upon the number of passenger accommodations aboard the vessel, calculated as follows:

$20,000 for each passenger accommodation up to and including five hundred; plus

$15,000 for each additional passenger accommodation between five hundred and one and one thousand; plus

$10,000 for each additional passenger accommodation between one thousand and one and one thousand five hundred; plus

$5,000 for each passenger accommodation in excess of one thousand five hundred:


Provided, however, That if such owner or charterer is operating more than one vessel subject to this section, the foregoing amount shall be based upon the number of passenger accommodations on the vessel being so operated which has the largest number of passenger accommodations. This amount shall be available to pay any judgment for damages, whether in amount less than or more than $20,000 for death or injury occurring on such voyages to any passenger or other person. Such financial responsibility may be established by any one of, or a combination of, the following methods which is acceptable to the Commission: (1) policies of insurance, (2) surety bonds, (3) qualifications as a self-insurer, or (4) other evidence of financial responsibility.

(b) Issuance of bond when filed with Commission

If a bond is filed with the Commission, then such bond shall be issued by a bonding company authorized to do business in the United States 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.

(c) Civil penalties for violations; remission or mitigation of penalties

Any person who shall violate this section shall be subject to a civil penalty of not more than $5,000 in addition to a civil penalty of $200 for each passage sold, such penalties to be assessed by the Federal Maritime Commission. These penalties may be remitted or mitigated by the Federal Maritime Commission upon such terms as they in their discretion shall deem proper.

(d) Rules and regulations

The Federal Maritime Commission is authorized to prescribe such regulations as may be necessary to carry out the provisions of this section. The provisions of this chapter shall apply with respect to proceedings conducted by the Commission under this section.

(e) Refusal of departure clearance

At the port or place of departure from the United States of any vessel described in subsection (a) of this section, the Customs Service shall refuse the clearance required by section 91 of this Appendix to any such vessel which does not have evidence furnished by the Federal Maritime Commission that the provisions of this section have been complied with.

(Pub. L. 89–777, §2, Nov. 6, 1966, 80 Stat. 1356; Pub. L. 103–182, title VI, §689(c), Dec. 8, 1993, 107 Stat. 2222.)

Codification

Section was not enacted as part of the Shipping Act, 1916, which comprises this chapter.

Amendments

1993—Subsec. (e). Pub. L. 103–182 substituted “At the port” for “The collector of customs at the port” and inserted “, the Customs Service” after “subsection (a) of this section”.

Effective Date

Section 5 of Pub. L. 89–777 provided in part that this section is effective 9 months after Nov. 6, 1966.

Transfer of Functions

All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

Section Referred to in Other Sections

This section is referred to in title 28 section 2342.

§817e. Financial responsibility for indemnification of passengers for nonperformance of transportation

(a) Filing of information or bond with Commission

No person in the United States shall arrange, offer, advertise, or provide passage on a vessel having berth or stateroom accommodations for fifty or more passengers and which is to embark passengers at United States ports without there first having been filed with the Federal Maritime Commission such information as the Commission may deem necessary to establish the financial responsibility of the person arranging, offering, advertising, or providing such transportation, or in lieu thereof a copy of a bond or other security, in such form as the Commission, by rule or regulation, may require and accept, for indemnification of passengers for nonperformance of the transportation.

(b) Issuance of bond when filed with Commission; amount of bond

If a bond is filed with the Commission, such bond shall be issued by a bonding company authorized to do business in the United States 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.

(c) Civil penalties for violations; remission or mitigation of penalties

Any person who shall violate this section shall be subject to a civil penalty of not more than $5,000 in addition to a civil penalty of $200 for each passage sold, such penalties to be assessed by the Federal Maritime Commission. These penalties may be remitted or mitigated by the Federal Maritime Commission upon such terms as they in their discretion shall deem proper.

(d) Rules and regulations

The Federal Maritime Commission is authorized to prescribe such regulations as may be necessary to carry out the provisions of this section. The provisions of this chapter shall apply with respect to proceedings conducted by the Commission under this section.

(e) Refusal of departure clearance

At the port or place of departure from the United States of any vessel described in subsection (a) of this section, the Customs Service shall refuse the clearance required by section 91 of this Appendix to any such vessel which does not have evidence furnished by the Federal Maritime Commission that the provisions of this section have been complied with.

(Pub. L. 89–777, §3, Nov. 6, 1966, 80 Stat. 1357; Pub. L. 103–182, title VI, §689(c), Dec. 8, 1993, 107 Stat. 2222; Pub. L. 103–206, title III, §320, Dec. 20, 1993, 107 Stat. 2427.)

Codification

Section was not enacted as part of the Shipping Act, 1916, which comprises this chapter.

Amendments

1993—Subsec. (b). Pub. L. 103–206 struck out before period at end “and such bond or other security shall be in an amount paid equal to the estimated total revenue for the particular transportation”.

Subsec. (e). Pub. L. 103–182 substituted “At the port” for “The collector of customs at the port” and inserted “, the Customs Service” after “subsection (a) of this section”.

Effective Date

Section 5 of Pub. L. 89–777 provided in part that this section is effective 180 days after Nov. 6, 1966.

Transfer of Functions

All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

Section Referred to in Other Sections

This section is referred to in section 289c of this Appendix; title 28 section 2342.

§833. Partial invalidity of chapter as not affecting remainder

If any provision of this chapter, or the application of such provision to certain circumstance, is held unconstitutional, the remainder of the chapter, and the application of such provision to circumstances other than those as to which it is held unconstitutional, shall not be affected thereby.

(Sept. 7, 1916, ch. 451, §34, 39 Stat. 738.)

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

§834. Refusal of clearance to vessel refusing to accept freight

The Secretary of the Treasury is authorized to refuse a clearance to any vessel or other vehicle laden with merchandise destined for a foreign or domestic port whenever he shall have satisfactory reason to believe that the master, owner, or other officer of such vessel or other vehicle refuses or declines to accept or receive freight or cargo in good condition tendered for such port of destination or for some intermediate port of call, together with the proper freight or transportation charges therefor, by any citizen of the United States, unless the same is fully laden and has no space accommodations for the freight or cargo so tendered, due regard being had for the proper loading of such vessel or vehicle, or unless such freight or cargo consists of merchandise for which such vessel or vehicle is not adaptable.

(Sept. 7, 1916, ch. 451, §36, 39 Stat. 738.)

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

§835. Restrictions on transfer of shipping facilities during war or national emergency

When the United States is at war or during any national emergency, the existence of which is declared by proclamation of the President, it shall be unlawful, without first obtaining the approval of the Secretary of Transportation:

(a) To transfer to or place under any foreign registry or flag any vessel owned in whole or in part by any person a citizen of the United States or by a corporation organized under the laws of the United States, or of any State, Territory, District, or possession thereof; or

(b) To sell, mortgage, lease, charter, deliver, or in any manner transfer, or agree to sell, mortgage, lease, charter, deliver, or in any manner transfer, to any person not a citizen of the United States, (1) any such vessel or any interest therein, or (2) any vessel documented under the laws of the United States, or any interest therein, or (3) any shipyard, dry dock, shipbuilding or ship-repairing plant or facilities, or any interest therein; or

(c) To issue, transfer, or assign a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction, or by a mortgage to a trustee on a shipyard, drydock, or shipbuilding or ship-repairing plant or facilities, to a person not a citizen of the United States, unless the trustee or a substitute trustee of such mortgage or assignment is approved by the Secretary of Transportation: Provided, however, That the Secretary of Transportation shall grant his approval if such trustee or a substitute trustee is a bank or trust company which (1) is organized as a corporation, and is doing business, under the laws of the United States or any State thereof, (2) is authorized under such laws to exercise corporate trust powers, (3) is a citizen of the United States, (4) is subject to supervision or examination by Federal or State authority, and (5) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000; or for the trustee or substitute trustee approved by the Secretary of Transportation to operate said vessel under the mortgage or assignment: Provided further, That if such trustee or a substitute trustee at any time ceases to meet the foregoing qualifications, the Secretary of Transportation, shall disapprove such trustee or substitute trustee, and after such disapproval the transfer or assignment of such bond, note, or other evidence of indebtedness to a person not a citizen of the United States, without the approval of the Secretary of Transportation, shall be unlawful; or

(d) To enter into any contract agreement, or understanding to construct a vessel within the United States for or to be delivered to any person not a citizen of the United States, without expressly stipulating that such construction shall not begin until after the war or emergency proclaimed by the President has ended; or

(e) To make any agreement or effect any understanding whereby there is vested in or for the benefit of any person not a citizen of the United States, the controlling interest or a majority of the voting power in a corporation which is organized under the laws of the United States, or of any State, Territory, District, or possession thereof, and which owns any vessel, shipyard, drydock, or shipbuilding, or ship-repairing plant or facilities; or

(f) To cause or procure any vessel constructed in whole or in part within the United States, which has never cleared for any foreign port, to depart from a port of the United States before it has been documented under the laws of the United States.

Whoever violates, or attempts or conspires to violate, any of the provisions of this section shall be guilty of a misdemeanor, punishable by a fine of not more than $5,000 or by imprisonment for not more than five years, or both.

If a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction, or by a mortgage to a trustee on a shipyard, drydock or ship-building or ship-repairing plant or facilities, is issued, transferred, or assigned to a person not a citizen of the United States in violation of subsection (c) of this section, the issuance, transfer or assignment shall be void.

Any vessel, shipyard, drydock, ship-building or ship-repairing plant or facilities, or interest therein, sold, mortgaged, leased, chartered, delivered, transferred, or documented, or agreed to be sold, mortgaged, leased, chartered, delivered, transferred, or documented, in violation of any of the provisions of this section, and any stocks, bonds, or other securities sold or transferred, or agreed to be sold or transferred, in violation of any of such provisions, or any vessel departing in violation of the provisions of subsection (e) 1 of this section, shall be forfeited to the United States.

Any such sale, mortgage, lease, charter, delivery, transfer, documentation, or agreement therefor shall be void, whether made within or without the United States, and any consideration paid therefor or deposited in connection therewith shall be recoverable at the suit of the person who has paid or deposited the same, or of his successors or assigns, after the tender of such vessel, shipyard, drydock, shipbuilding or ship-repairing plant or facilities, or interest therein, or of such stocks, bonds, or other securities, to the person entitled thereto, or after forfeiture thereof to the United States, unless the person to whom the consideration was paid, or in whose interest it was deposited, entered into the transaction in the honest belief that the person who paid or deposited such consideration was a citizen of the United States.

(Sept. 7, 1916, ch. 451, §37, as added July 15, 1918, ch. 152, §4, 40 Stat. 901; amended Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Nov. 8, 1965, Pub. L. 89–346, §2, 79 Stat. 1306; Aug. 6, 1981, Pub. L. 97–31, §12(30), 95 Stat. 156.)

References in Text

Subsection (e) of this section, referred to in penultimate par., was redesignated subsection (f) of this section by Pub. L. 89–346 without amendment to said paragraph to reflect such redesignation.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in introductory par., and for “Secretary of Commerce” in five places in subsec. (c). For prior transfers of functions, see Transfer of Functions note below.

1965—Subsecs. (c) to (f). Pub. L. 89–346, §2(a), added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively.

Pub. L. 89–346, §2(b), inserted provisions voiding the issuance, transfer or assignment of bonds, notes, or other evidences of indebtedness which are secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction, or by a mortgage to a trustee on a shipyard, drydock or ship-building or ship-repairing plant or facilities, if such issuance, transfer or assignment is made in violation of subsec. (c) of this section.

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

Transfer of Functions

In introductory par., “Commission”, meaning United States Maritime Commission, substituted for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix.

National Emergency, 1950

For Presidential Proclamation of the existence of a national emergency, see Proc. No. 2914, eff. Dec. 16, 1950, 15 F.R. 9029, 64 Stat. 454, set out as a note preceding section 1 of Title 50, Appendix, War and National Defense.

Termination of War and Emergencies

Joint Res. July 25, 1947, ch. 327, §3, 61 Stat. 451, provided that in the interpretation of this section, the date July 25, 1947, shall be deemed to be the date of termination of any state of war theretofore declared by Congress and of the national emergencies proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

Cross References

Corporation meeting certain conditions deemed citizen for purposes of this section, see section 883–1 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 839, 865a, 883–1, 1160 of this Appendix; title 28 section 2342; title 46 sections 12111, 31306.

1 See References in Text note below.

§836. Forfeitures

All forfeitures incurred under the provisions of this chapter may be prosecuted in the same court, and may be disposed of in the same manner, as forfeitures incurred for offenses against the law relating to the collection of duties, except that forfeitures may be remitted without seizure of the vessel.

(Sept. 7, 1916, ch. 451, §38, as added July 15, 1918, ch. 152, §4, 40 Stat. 902; amended Dec. 12, 1989, Pub. L. 101–225, title III, §304(b), 103 Stat. 1924.)

Amendments

1989—Pub. L. 101–225 substituted “duties, except that forfeitures may be remitted without seizure of the vessel” for “duties”.

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

National Emergency, 1950

For Presidential Proclamation of the existence of a national emergency, see Proc. No. 2914, eff. Dec. 16, 1950, 15 F.R. 9029, 64 Stat. 454, set out as a note preceding section 1 of Title 50, Appendix, War and National Defense.

Termination of War and Emergencies

Joint Res. July 25, 1947, ch. 327, §3, 61 Stat. 451, provided that in the interpretation of this section, the date July 25, 1947, shall be deemed to be the date of termination of any state of war theretofore declared by Congress and of the national emergencies proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

Cross References

Forfeitures for offenses against collection of duties, see section 1604 et seq. of Title 19, Customs Duties.

§837. Prima facie evidence

In any action or proceeding under the provisions of this chapter to enforce a forfeiture the conviction in a court of criminal jurisdiction of any person for a violation thereof with respect to the subject of the forfeiture shall constitute prima facie evidence of such violation against the person so convicted.

(Sept. 7, 1916, ch. 451, §39, as added July 15, 1918, ch. 152, §4, 40 Stat. 902.)

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

National Emergency, 1950

For Presidential Proclamation of the existence of a national emergency, see Proc. No. 2914, eff. Dec. 16, 1950, 15 F.R. 9029, 64 Stat. 454, set out as a note preceding section 1 of Title 50, Appendix, War and National Defense.

Termination of War and Emergencies

Joint Res. July 25, 1947, ch. 327, §3, 61 Stat. 451, provided that in the interpretation of this section, the date July 25, 1947, shall be deemed to be the date of termination of any state of war theretofore declared by Congress and of the national emergencies proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

§839. Approvals by Secretary

Whenever by section 808 or 835 of this Appendix the approval of the Secretary of Transportation is required to render any act or transaction lawful, such approval may be accorded either absolutely or upon such conditions as the Secretary of Transportation prescribes. Whenever the approval of the Secretary of Transportation is accorded upon any condition a statement of such condition shall be entered upon his records and incorporated in the same document or paper which notifies the applicant of such approval. A violation of such condition so incorporated shall constitute a misdemeanor and shall be punishable by fine and imprisonment in the same manner, and shall subject the vessel, stocks, bonds, or other subject matter of the application conditionally approved to forfeiture in the same manner, as though the act conditionally approved had been done without the approval of the Secretary of Transportation, but the offense shall be deemed to have been committed at the time of the violation of the condition.

Whenever by this chapter the approval of the Secretary of Transportation is required to render any act or transaction lawful, whoever knowingly makes any false statement of a material fact to the Secretary of Transportation, or to any officer, attorney, or agent of the Department of Transportation, for the purpose of securing such approval, shall be guilty of a misdemeanor and subject to a fine of not more than $5,000, or to imprisonment for not more than five years, or both.

(Sept. 7, 1916, ch. 451, §41, as added July 15, 1918, ch. 152, §4, 40 Stat. 902; amended Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(32), 95 Stat. 156.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” and “his” for “its” and, in view of this amendment, “or to any officer, attorney, or agent of the Department of Transportation” were editorially substituted in second paragraph for “or to any member thereof, or to any officer, attorney, or agent thereof”. For prior transfers of functions, see Transfer of Functions note below.

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

National Emergency, 1950

For Presidential Proclamation of the existence of a national emergency, see Proc. No. 2914, eff. Dec. 16, 1950, 15 F.R. 9029, 64 Stat. 454, set out as a note preceding section 1 of Title 50, Appendix, War and National Defense.

Termination of War and Emergencies

Joint Res. July 25, 1947, ch. 327, §3, 61 Stat. 451, provided that in the interpretation of this section, the date July 25, 1947, shall be deemed to be the date of termination of any state of war theretofore declared by Congress and of the national emergencies proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

Section Referred to in Other Sections

This section is referred to in section 865a of this Appendix; title 28 section 2342.

§842. Short title

This chapter may be cited as “Shipping Act, 1916.”

(Sept. 7, 1916, ch. 451, §46, formerly §44, as added July 15, 1918, ch. 152, §4, 40 Stat. 903, renumbered §45, Sept. 19, 1961, Pub. L. 87–254, §2, 75 Stat. 522, and renumbered §46, Aug. 8, 1980, Pub. L. 96–325, §5, 94 Stat. 1022.)

Short Title of 1980 Amendment

Section 1 of Pub. L. 96–325 provided: “That this Act [enacting section 841c of this Appendix, amending sections 801 and 814 of this Appendix, and enacting a provision set out as a note under section 841c of this Appendix] may be cited as the ‘Maritime Labor Agreements Act of 1980’.”

Short Title of 1979 Amendment

Pub. L. 96–25, §1, June 19, 1979, 93 Stat. 71, provided: “That this Act [amending sections 815, 817, 820, 821, 822, 826, 828, 829, and 831 of this Appendix and enacting provisions set out as a note under section 815 of this Appendix] may be cited as the ‘Shipping Act Amendments of 1979’.”

Short Title of 1978 Amendment

Pub. L. 95–483, §1, Oct. 18, 1978, 92 Stat. 1607, provided: “That this Act [amending sections 801 and 817 of this Appendix and enacting provision set out as a note under section 801 of this Appendix] may be cited as the ‘Ocean Shipping Act of 1978’.”

Repeals

For provisional repeal, see note set out preceding section 801 of this Appendix.

CHAPTER 24—MERCHANT MARINE ACT, 1920

Sec.
861.
Purpose and policy of United States.
864a.
Purchase allowance in sale of vessels for cost of putting vessels in class.
864b.
Elements considered in sale of vessels in determination of selling price.
865.
Sale to aliens.
865a.
Sale of inactive passenger vessels to foreigners; conditions; requisition in emergency; surety bond.
866.
Establishment and operation of steamship lines between ports of United States.
867.
Investigation of port, terminal, and warehouse facilities.
868.
Vessels sold under deferred payment plan; insurance.
869.
Creation of fund for insurance of interests of United States.
871.
Repair and operation of vessels until sale.
872.
Sale of property other than vessels.
875.
Possession and control of terminal equipment and facilities.
876.
Power of Secretary and Commission to make rules and regulations.
877.
Coastwise laws extended to island Territories and possessions.
883.
Transportation of merchandise between points in United States in other than domestic built or rebuilt and documented vessels; incineration of hazardous waste at sea.
883–1.
Corporation as citizen; fisheries and transportation of merchandise or passengers between points in United States; parent and subsidiary corporations; domestic built vessels; certificate; surrender of documents on change in status.
883a.
Reports required of United States vessels rebuilt abroad; penalty for failure to report; mitigation of penalty.
883b.
Regulations.
884.
Charges for transportation subject to interstate transportation provisions.
885.
Association of marine insurance companies; application of antitrust laws.
887.
Partial invalidity.
888.
Definitions.
889.
Short title.

        

Chapter Referred to in Other Sections

This chapter is referred to in section 1114 of this Appendix; title 15 section 1014.

§861. Purpose and policy of United States

It is necessary for the national defense and for the proper growth of its foreign and domestic commerce that the United States shall have a merchant marine of the best equipped and most suitable types of vessels sufficient to carry the greater portion of its commerce and serve as a naval or military auxiliary in time of war or national emergency, ultimately to be owned and operated privately by citizens of the United States; and it is declared to be the policy of the United States to do whatever may be necessary to develop and encourage the maintenance of such a merchant marine, and, insofar as may not be inconsistent with the express provisions of this Act, the Secretary of Transportation shall, in the disposition of vessels and shipping property as hereinafter provided, in the making of rules and regulations, and in the administration of the shipping laws keep always in view this purpose and object as the primary end to be attained.

(June 5, 1920, ch. 250, §1, 41 Stat. 988; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(33), 95 Stat. 156.)

References in Text

This Act, referred to in text, means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to this chapter. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

The shipping laws, referred to in text, are classified generally to Title 46, Shipping, and this Appendix.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “United States Maritime Commission”. For prior transfer of functions, see Transfer of Functions note below.

Transfer of Functions

“United States Maritime Commission” substituted in text for “United States Shipping Board”. For dissolution of Board and transfer of functions to Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 871, 891 of this Appendix.

§864a. Purchase allowance in sale of vessels for cost of putting vessels in class

On and after June 30, 1948, the Secretary of Transportation may make allowances to purchasers of vessels for cost of putting such vessels in class, such allowances to be determined on the basis of competitive bids, without regard to the provisions of the last paragraph of section 1736(d) 1 of the Appendix to title 50.

(June 30, 1948, ch. 775, §101, 62 Stat. 1199; Aug. 6, 1981, Pub. L. 97–31, §12(35), 95 Stat. 156.)

References in Text

Section 1736(d) of the Appendix to title 50, referred to in text, was repealed by Pub. L. 101–225, title III, §307(12), Dec. 12, 1989, 103 Stat. 1925.

Codification

Section was enacted as part of The Supplemental Independent Offices Appropriation Act, 1949, act June 30, 1948, and not as part of the Merchant Marine Act, 1920, which comprises this chapter.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission”, meaning the United States Maritime Commission.

1 See References in Text note below.

§864b. Elements considered in sale of vessels in determination of selling price

On and after June 29, 1949, no sale of a vessel by the Maritime Administration of the Department of Transportation shall be completed until its ballast and equipment shall have been inventoried and their value taken into consideration by the Maritime Administration in determining the selling price.

(June 29, 1949, ch. 281, §1, 63 Stat. 349; Aug. 6, 1981, Pub. L. 97–31, §12(36), 95 Stat. 156.)

Codification

Section was not enacted as part of the Merchant Marine Act, 1920, which comprises this chapter.

Amendments

1981—Pub. L. 97–31 substituted “Maritime Administration of the Department of Transportation” for “Maritime Commission” and “Maritime Administration” for “Commission”, meaning United States Maritime Commission.

§865. Sale to aliens

The Secretary of Transportation is authorized and empowered to sell to aliens, at such prices and on such terms and conditions as he may determine, not inconsistent with the provisions of section 5 1 (except that completion of the payment of the purchase price and interest shall not be deferred more than ten years after the making of the contract of sale), such vessels as he shall, after careful investigation, deem unnecessary to the promotion and maintenance of an efficient American merchant marine; but no such sale shall be made unless the Secretary of Transportation, after diligent effort, has been unable to sell, in accordance with the terms and conditions of section 5,1 such vessels to persons citizens of the United States, and has determined to make such sale; and he shall make as a part of his records a full statement of his reasons for making such sale. Deferred payments of purchase price of vessels under this section shall bear interest at the rate of not less than 51/2 per centum per annum, payable semiannually.

(June 5, 1920, ch. 250, §6, 41 Stat. 991; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(37), 95 Stat. 156.)

References in Text

Section 5, referred to in text, means section 5 of act June 5, 1920, which was classified to section 864 of former Title 46, Shipping, and was repealed by Pub. L. 100–710, title II, §202(4), Nov. 23, 1988, 102 Stat. 4753.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in two places, “he” for “it” in three places, and “his” for “its” in two places, and struck out “upon an affirmative vote of not less than five of its members, spread upon the minutes of the board,” before “determined to make such sale”. For prior transfers of functions, see Transfer of Functions note below.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

1 See References in Text note below.

§865a. Sale of inactive passenger vessels to foreigners; conditions; requisition in emergency; surety bond

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 [46 App. U.S.C. 1183(a)], 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 [46 App. U.S.C. 1101 et seq.]; 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 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); (c) the purchaser will comply with such further conditions as the Secretary may impose as authorized by sections 808, 835 and 839 of this Appendix; 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.

(Pub. L. 92–296, §1, May 16, 1972, 86 Stat. 140; Pub. L. 97–31, §12(38), Aug. 6, 1981, 95 Stat. 156.)

References in Text

The Merchant Marine Act, 1936, referred to in text, is act June 29, 1936, ch. 858, 49 Stat. 1985, as amended, which is classified principally to chapter 27 (§1101 et seq.) of this Appendix. For complete classification of this Act to the Code, see section 1245 of this Appendix and Tables.

Codification

Section was not enacted as part of the Merchant Marine Act, 1920, which comprises this chapter.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Secretary of Commerce”.

§866. Establishment and operation of steamship lines between ports of United States

Investigation and determination by Secretary—The Secretary of Transportation is authorized and directed to investigate and determine as promptly as possible after June 5, 1920, and from time to time thereafter what steamship lines should be established and put in operation from ports in the United States or any Territory, District, or possession thereof to such world and domestic markets as in his judgment are desirable for the promotion, development, expansion, and maintenance of the foreign and coastwise trade of the United States and an adequate postal service, and to determine the type, size, speed, and other requirements of the vessels to be employed upon such lines and the frequency and regularity of their sailings, with a view to furnishing adequate, regular, certain, and permanent service.

Sale or charter of vessels—The Secretary of Transportation is authorized to sell, and if a satisfactory sale cannot be made, to charter such of the vessels referred to in section 863 of this Appendix or otherwise acquired by the Secretary of Transportation, as will meet these requirements to responsible persons who are citizens of the United States who agree to establish and maintain such lines upon such terms of payment and other conditions as the Secretary of Transportation may deem just and necessary to secure and maintain the service desired; and if any such steamship line is deemed desirable and necessary, and if no such citizen can be secured to supply such service by the purchase or charter of vessels on terms satisfactory to the Secretary of Transportation, the Secretary of Transportation shall operate vessels on such line until the business is developed so that such vessels may be sold on satisfactory terms and the service maintained, or unless it shall appear within a reasonable time that such line cannot be made self-sustaining.

Preference in sales or charters—Preference in the sale or assignment of vessels for operation on such steamship lines shall be given to persons who are citizens of the United States who have the support, financial and otherwise, of the domestic communities primarily interested in such lines if the Secretary of Transportation is satisfied of the ability of such persons to maintain the service desired and proposed to be maintained, or to persons who are citizens of the United States who may then be maintaining a service from the port of the United States to or in the general direction of the world-market port to which the Secretary of Transportation has determined that such service should be established.

Lines established by shipping board; continued operation—Where steamship lines and regular service had been established and were being maintained by ships of the United States Shipping Board on June 5, 1920, such lines and service shall be maintained by the Secretary of Commerce until, in the opinion of the Secretary, the maintenance thereof is unbusinesslike and against the public interests.

Additional lines established by Secretary; rates and charges—Whenever the Secretary of Transportation shall determine, as provided in this Act, that trade conditions warrant the establishment of a service or additional service under Government administration where a service is already being given by persons, citizens of the United States, the rates and charges for such Government service shall not be less than the cost thereof, including a proper interest and depreciation charge on the value of Government vessels and equipment employed therein.

(June 5, 1920, ch. 250, §7, 41 Stat. 991; May 22, 1928, ch. 675, §414(b), 45 Stat. 696; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; 1950 Reorg. Plan No. 21, §204, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276; Aug. 6, 1981, Pub. L. 97–31, §12(39), 95 Stat. 156.)

References in Text

This Act, referred to in text, means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to this chapter. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

Section 863 of this Appendix, referred to in text, was omitted from the Code.

Codification

United States Shipping Board, referred to in fourth undesignated par., dissolved and functions transferred to successive Federal agencies and departments. Secretary of Commerce, referred to in such par., exercised certain functions of Board pursuant to Reorg. Plan No. 21 of 1950, and was not changed to Secretary of Transportation in view of directory language of Pub. L. 97–31. See 1981 Amendment and Transfer of Functions notes below.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” wherever appearing except in fourth paragraph and “his” for “its”. For prior transfers of functions, see Transfer of Functions note below.

1928—Act May 22, 1928, struck out paragraph which related to contracts for carrying mails.

Transfer of Functions

Functions conferred upon Secretary of Commerce by provisions of Reorg. Plan No. 21 of 1950 to remain vested in Secretary except to extent inconsistent with sections 101(b) and 104(b) of Reorg. Plan No. 7 of 1961. See section 202 of Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

In fourth undesignated par., “Secretary of Commerce” and “Secretary” substituted for “Commission”, meaning United States Maritime Commission, on authority of Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix, section 306 of which abolished United States Maritime Commission and section 204 of which transferred to Secretary of Commerce such Commission's functions not transferred to Federal Maritime Board.

Previously, “Commission”, meaning United States Maritime Commission, substituted for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. Executive and administrative functions of United States Maritime Commission transferred to Chairman thereof by Reorg. Plan No. 6 of 1949, eff. Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069, set out under section 1111 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 891v, 1195 of this Appendix.

§867. Investigation of port, terminal, and warehouse facilities

It shall be the duty of the Secretary of Transportation, in cooperation with the Secretary of the Army, with the object of promoting, encouraging, and developing ports and transportation facilities in connection with water commerce over which he has jurisdiction, to investigate territorial regions and zones tributary to such ports, taking into consideration the economies of transportation by rail, water, and highway and the natural direction of the flow of commerce; to investigate the causes of the congestion of commerce at ports and the remedies applicable thereto; to investigate the subject of water terminals, including the necessary docks, warehouses, apparatus, equipment, and appliances in connection therewith, with a view to devising and suggesting the types most appropriate for different locations and for the most expeditious and economical transfer or interchange of passengers or property between carriers by water and carriers by rail; to advise with communities regarding the appropriate location and plan of construction of wharves, piers, and water terminals; to investigate the practicability and advantages of harbor, river, and port improvements in connection with foreign and coastwise trade; and to investigate any other matter that may tend to promote and encourage the use by vessels of ports adequate to care for the freight which would naturally pass through such ports: Provided, That if after such investigation the Secretary of Transportation shall be of the opinion that rates, charges, rules, or regulations of common carriers by rail subject to the jurisdiction of the Surface Transportation Board are detrimental to the declared object of this section, or that new rates, charges, rules, or regulations, new or additional port terminal facilities, or affirmative action on the part of such common carriers by rail is necessary to promote the objects of this section, the Secretary of Transportation may submit his findings to the Surface Transportation Board for such action as such Board may consider proper under existing law.

(June 5, 1920, ch. 250, §8, 41 Stat. 992; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; July 26, 1947, ch. 343, title II, §205(a), 61 Stat. 501; Aug. 6, 1981, Pub. L. 97–31, §12(40), 95 Stat. 156; Dec. 29, 1995, Pub. L. 104–88, title III, §321(1), 109 Stat. 949.)

Amendments

1995—Pub. L. 104–88 substituted “Surface Transportation Board” for “Interstate Commerce Commission” in two places and “Board” for “commission”.

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in three places, “his” for “its”, and “he” for “it”. For prior transfers of functions, see Transfer of Functions note below.

Change of Name

Department of War designated Department of the Army and title of Secretary of War changed to Secretary of the Army by section 205(a) of act July 26, 1947, ch. 343, title II, 61 Stat. 501. Section 205(a) of act July 26, 1947, was repealed by section 53 of act Aug. 10, 1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug. 10, 1956, enacted “Title 10, Armed Forces”, which in sections 3010 to 3013 continued Department of the Army under administrative supervision of Secretary of the Army.

Effective Date of 1995 Amendment

Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 701 of Title 49, Transportation.

Transfer of Functions

“Maritime Commission” and “Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board). For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§868. Vessels sold under deferred payment plan; insurance

If the terms and conditions of any sale of a vessel made under the provisions of this Act include deferred payments of the purchase price, the Secretary of Transportation shall require, as part of such terms and conditions, that the purchaser of the vessel shall keep the same insured (a) against loss or damage by fire, and against marine risks and disasters, and war and other risks if the Secretary of Transportation so specifies, with such insurance companies, associations or underwriters, and under such forms of policies, and to such an amount, as the Secretary of Transportation may prescribe or approve; and (b) by protection and indemnity insurance with such insurance companies, associations, or underwriters and under such forms of policies, and to such an amount as the Secretary of Transportation may prescribe or approve. The insurance required to be carried under this section shall be made payable to the Secretary of Transportation and/or to the parties as interest may appear. The Secretary of Transportation is authorized to enter into any agreement that he deems wise in respect to the payment and/or the guarantee of premiums of insurance.

(June 5, 1920, ch. 250, §9, 41 Stat. 992; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(41), 95 Stat. 156.)

References in Text

This Act, referred to in text, means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to this chapter. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in six places and “he” for “it”. For prior transfers of functions, see Transfer of Functions note below.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 1153 of this Appendix.

§869. Creation of fund for insurance of interests of United States

The Secretary of Transportation may create out of insurance premiums, and revenue from operations and sales, and maintain and administer separate insurance funds which he may use to insure in whole or in part against all hazards commonly covered by insurance policies in such cases, any legal or equitable interest of the United States (1) in any vessel constructed or in process of construction; and (2) in any plants or property in the possession or under the authority of the Secretary of Transportation. The United States shall be held to have such an interest in any vessel toward the construction, reconditioning, remodeling, improving, or equipping of which a loan has been made under the authority of this Act, in any vessel upon which he holds a mortgage or lien of any character, or in any vessel which is obligated by contract with the owner to perform any service in behalf of the United States, to the extent of the Government's interest therein.

(June 5, 1920, ch. 250, §10, 41 Stat. 992; May 22, 1928, ch. 675, §501, 45 Stat. 697; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(42), Aug. 6, 1981, 95 Stat. 156.)

References in Text

This Act, referred to in text, means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to this chapter. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in two places and “he” for “it” in two places. For prior transfers of functions, see Transfer of Functions note below.

1928—Act May 22, 1928, inserted sentence relating to extent of interest of United States, among other changes.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Cross References

War risk insurance, see section 1281 et seq. of this Appendix.

§871. Repair and operation of vessels until sale

All vessels may be reconditioned and kept in suitable repair and until sold shall be managed and operated by the Secretary of Transportation or chartered or leased by him on such terms and conditions as the Secretary of Transportation shall deem wise for the promotion and maintenance of an efficient merchant marine, pursuant to the policy and purposes declared in section 861 of this Appendix and section 5 of this Act.1

The term “reconditioned” as used in this section includes the substitution of the most modern, most efficient, and most economical types of internal-combustion engines as the main propulsive power of vessels. Should the Secretary of Transportation have any such engines built in the United States and installed, in private shipyards or navy yards of the United States, in one or more merchant vessels owned by the United States, and the cost to the Secretary of Transportation of such installation exceeds the amount of funds otherwise available to him for that use, the Secretary of Transportation may transfer to his funds from which expenditures under this section may be paid, from his construction fund authorized by section 11 1 of the Merchant Marine Act, 1920, so much as in his judgment may be necessary to meet obligations under contracts for such installation; and the Treasurer of the United States shall, at the request of the Secretary of Transportation, make the transfer accordingly: Provided, That the total amount expended by the Secretary of Transportation for this purpose shall not in the aggregate exceed $25,000,000. Any such vessel after June 5, 1920, so equipped by the Secretary of Transportation under the provisions of this section shall not be sold for a period of five years from the date the installation thereof is completed, unless it is sold for a price not less than the cost of the installation thereof and of any other work of reconditioning done at the same time plus an amount not less than $10 for each dead-weight ton of the vessel as computed before such reconditioning thereof is commenced. The date of the completion of such installation and the amount of the dead-weight tonnage of the vessel shall be fixed by the Secretary of Transportation: Provided further, That in fixing the minimum price at which the vessel may thus be sold the Secretary of Transportation may deduct from the aggregate amount above prescribed 5 per centum thereof per annum from the date of the installation to the date of sale as depreciation: And provided further, That no part of such fund shall be expended upon the reconditioning of any vessel unless the Secretary of Transportation shall have first made a binding contract for a satisfactory sale of such vessel in accordance with the provisions of this Act, or for the charter or lease of such vessels for a period of not less than five years by a capable, solvent operator; or unless the Secretary of Transportation is prepared and intends to directly put such vessel in operation immediately upon completion. Such vessel, in any of the enumerated instances, shall be documented under the laws of the United States and shall remain documented under such laws for a period of not less than five years from the date of the completion of the installation, and during such period it shall be operated only on voyages which are not exclusively coastwise.

(June 5, 1920, ch. 250, §12, 41 Stat. 993; June 6, 1924, ch. 273, §2, 43 Stat. 468; Feb. 11, 1927, ch. 104, §1, 44 Stat. 1083; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(43), 95 Stat. 157.)

References in Text

Section 5 of this Act, referred to in text, is section 5 of act June 5, 1920, which was classified to section 864 of former Title 46, Shipping, and was repealed by Pub. L. 100–710, title II, §202(4), Nov. 23, 1988, 102 Stat. 4753.

Section 11 of the Merchant Marine Act, 1920, referred to in text, was classified to section 870 of former Title 46, and was repealed by act June 29, 1936, ch. 858, §903(b), (c), 49 Stat. 2016. See section 1116 of this Appendix.

This Act, referred to in text, means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46) is classified principally to this chapter. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

Codification

The first paragraph of this section originally contained a further provision continuing the United States Shipping Board Merchant Fleet Corporation in existence with authority to operate vessels. The corporation was subsequently dissolved by section 203 of act June 29, 1936.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in twelve places, “him” for “it” in two places, and “his” for “its” in three places. For prior transfers of functions, see Transfer of Functions note below.

1927—Act Feb. 11, 1927, substituted “U.S. Shipping Board Merchant Fleet Corporation” for “U.S. Shipping Board Emergency Fleet Corporation” in first par.

1924—Act June 6, 1924, added second par.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 891b of this Appendix.

1 See References in Text note below.

§872. Sale of property other than vessels

The Secretary of Transportation is further authorized to sell all property other than vessels transferred to him under section 4 1 upon such terms and conditions as the Secretary of Transportation may determine and prescribe.

(June 5, 1920, ch. 250, §13, 41 Stat. 993; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(44), 95 Stat. 157.)

References in Text

Section 4, referred to in text, means section 4 of act June 5, 1920, 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.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in two places and “him” for “it”. For prior transfers of functions, see Transfer of Functions note below.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

1 See References in Text note below.

§875. Possession and control of terminal equipment and facilities

The possession and control of such other 1 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 appurtenant thereto which were acquired by the War Department 2 or the Navy Department for military or naval purposes during the war emergency may be transferred by the president to the Secretary of Transportation whenever the President deems such transfer to be for the best interests of the United States.

The President may at any time he deems it necessary, by order setting out the need therefor and fixing the period of such need, permit or transfer the possession and control of any part of the property taken over by or transferred to the Secretary of Transportation under this section to the Department of the Army, Department of the Air Force, or Department of the Navy for their needs, and when in the opinion of the President such need therefor ceases the possession and control of such property shall revert to the Secretary of Transportation. None of such property shall be sold except as may be provided by law.

(June 5, 1920, ch. 250, §17, 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; July 26, 1947, ch. 343, title II, §§205(a), 207(a), (f), 61 Stat. 501, 502; Aug. 6, 1981, Pub. L. 97–31, §12(45), 95 Stat. 157.)

References in Text

Words “such other”, referred to in first par., mean other than docks, etc., acquired by President by or under act Mar. 28, 1918, ch. 28, 40 Stat. 459, which was referred to in original first par. prior to repeal by Pub. L. 97–31. See 1981 Amendment note below.

Amendments

1981—Pub. L. 97–31 struck out first par., directing Commission to take over, on Jan. 1, 1921, possession and control of docks, etc., acquired by President by or under act Mar. 28, 1918, ch. 28, 40 Stat. 459, and substituted “Secretary of Transportation” for “Commission” wherever appearing. For prior transfers of functions, see Transfer of Functions note below.

Change of Name

Department of War designated Department of the Army and title of Secretary of War changed to Secretary of the Army by section 205(a) of act July 26, 1947. Section 207(a), (f) of act July 26, 1947, established Department of the Air Force, headed by a Secretary, and transferred functions (relating to Army Air Forces) of Secretary of the Army and Department of the Army to Secretary of the Air Force and Department of the Air Force. Sections 205(a) and 207(a), (f) of act July 26, 1947, were repealed by section 53 of act Aug. 10, 1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug. 10, 1956, enacted “Title 10, Armed Forces”, which in sections 3010 to 3013 and 8010 to 8013 continued Departments of the Army and Air Force under administrative supervision of Secretary of the Army and Secretary of the Air Force, respectively.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

1 See References in Text note below.

2 See Change of Name note below.

§876. Power of Secretary and Commission to make rules and regulations

(1) The Secretary of Transportation is authorized and directed in aid of the accomplishment of the purposes of this Act—

(a) To make all necessary rules and regulations to carry out the provisions of this Act;

And the Federal Maritime Commission is authorized and directed in aid of the accomplishment of the purposes of this Act:

(b) To make rules and regulations affecting shipping in the foreign trade not in conflict with law in order to adjust or meet general or special conditions unfavorable to shipping in the foreign trade, whether in any particular trade or upon any particular route or in commerce generally, including intermodal movements, terminal operations, cargo solicitation, forwarding and agency services, non-vessel-operating common carrier operations, and other activities and services integral to transportation systems, and which arise out of or result from foreign laws, rules, or regulations or from competitive methods or practices employed by owners, operators, agents, or masters of vessels of a foreign country; and

(c) To request the head of any department, board, bureau, or agency of the Government to suspend, modify, or annul rules or regulations which have been established by such department, board, bureau, or agency, or to make new rules or regulations affecting shipping in the foreign trade other than such rules or regulations relating to the Public Health Service, the Consular Service, and the steamboat inspection service.

(2) No rule or regulation shall be established by any department, board, bureau, or agency of the Government which affects shipping in the foreign trade, except rules or regulations affecting the Public Health Service, the Consular Service, and the steamboat inspection service, until such rule or regulation has been submitted to the Federal Maritime Commission for its approval and final action has been taken thereon by the Commission or the President.

(3) Whenever the head of any department, board, bureau, or agency of the Government refuses to suspend, modify, or annul any rule or regulation, or make a new rule or regulation upon request of the Federal Maritime Commission, as provided in subdivision (c) of paragraph (1) of this section, or objects to the decision of the Commission in respect to the approval of any rule or regulation, as provided in paragraph (2) of this section, either the Commission or the head of the department, board, bureau, or agency which has established or is attempting to establish the rule or regulation in question may submit the facts to the President, who is authorized to establish or suspend, modify, or annul such rule or regulation.

(4) No rule or regulation shall be established which in any manner gives vessels owned by the United States any preference or favor over those vessels documented under the laws of the United States and owned by persons who are citizens of the United States.

(5) The Commission may initiate a rule or regulation under paragraph (1)(b) of this section either on its own motion or pursuant to a petition. Any person, including a common carrier, tramp operator, bulk operator, shipper, shippers’ association, ocean freight forwarder, marine terminal operator, or any component of the Government of the United States, may file a petition for relief under paragraph (1)(b) of this section.

(6) In furtherance of the purposes of paragraph (1)(b) of this section—

(a) the Commission may, by order, require any person (including any common carrier, tramp operator, bulk operator, shipper, shippers’ association, ocean freight forwarder, 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 which the Commission considers necessary or appropriate;

(b) the Commission may require a report or answers to questions to be made under oath;

(c) the Commission may prescribe the form and the time for response to a report and answers to questions; and

(d) a person who fails to file a report, answer, documentary material, or other information required under this paragraph shall be liable to the United States Government for a civil penalty of not more than $5,000 for each day that the information is not provided.


(7) In proceedings under paragraph (1)(b) of this section—

(a) the Commission may authorize a party to use depositions, written interrogatories, and discovery procedures that, to the extent practicable, are in conformity with the rules applicable in civil proceedings in the district courts of the United States;

(b) the Commission may by subpoena compel the attendance of witnesses and the production of books, papers, documents, and other evidence;

(c) subject to funds being provided by appropriations Acts, witnesses are, unless otherwise prohibited by law, entitled to the same fees and mileage as in the courts of the United States;

(d) for failure to supply information ordered to be produced or compelled by subpoena under subdivision (b), the Commission may—

(i) after notice and an opportunity for hearing, suspend tariffs of a common carrier or that common carrier's right to use the tariffs of conferences of which it is a member, or

(ii) assess a civil penalty of not more than $5,000 for each day that the information is not provided; and


(e) when a person violates an order of the Commission or fails to comply with a subpoena, the Commission may seek enforcement by a United States district court having jurisdiction over the parties, and if, after hearing, the court determines that the order was regularly made and duly issued, it shall enforce the order by an appropriate injunction or other process, mandatory or otherwise.


(8) Notwithstanding any other law, the Commission may refuse to disclose to the public a response or other information provided under the terms of this section.

(9) If the Commission finds that conditions that are unfavorable to shipping under paragraph (1)(b) of this section exist, the Commission may—

(a) limit sailings to and from United States ports or the amount or type of cargo carried;

(b) suspend, in whole or in part, tariffs filed with the Commission for carriage to or from United States ports, including a common carrier's right to use tariffs of conferences in United States trades of which it is a member for any period the Commission specifies;

(c) suspend, in whole or in part, an ocean common carrier's right to operate under an agreement filed with the Commission, including any agreement authorizing preferential treatment at terminals, preferential terminal leases, space chartering, or pooling of cargoes or revenue with other ocean common carriers;

(d) impose a fee, not to exceed $1,000,000 per voyage; or

(e) 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.


(10) Upon request by the Commission—

(a) the collector of customs at the port or place of destination in the United States shall refuse the clearance required by section 91 of this Appendix to a vessel of a country that is named in a rule or regulation issued by the Commission under paragraph (1)(b) of this section, and shall collect any fees imposed by the Commission under paragraph (9)(d) of this section; and

(b) the Secretary of the department in which the Coast Guard is operating shall deny entry for purpose of oceanborne trade, of a vessel of a country that is named in a rule or regulation issued by the Commission under paragraph (1)(b) of this section, to any port or place in the United States or the navigable waters of the United States, or shall detain that 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.


(11) A common carrier that accepts or handles cargo for carriage under a tariff that has been suspended under paragraph (7)(d) or (9)(b) of this section, or after its right to use another tariff has been suspended under those paragraphs, is subject to a civil penalty of not more than $50,000 for each day that it is found to be operating under a suspended tariff.

(12) The Commission may consult with, seek the cooperation of, or make recommendations to other appropriate Government agencies prior to taking any action under this section.

(June 5, 1920, ch. 250, §19, 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; Aug. 6, 1981, Pub. L. 97–31, §12(46), 95 Stat. 157; Nov. 16, 1990, Pub. L. 101–595, title I, §103, 104 Stat. 2979; Nov. 4, 1992, Pub. L. 102–587, title VI, §6205(b), 106 Stat. 5094.)

References in Text

This Act, referred to in par. (1), means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to this chapter. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

Amendments

1992—Par. (1)(b). Pub. L. 102–587, §6205(b)(1), substituted “systems” for “sysetms” after “integral to transportation”.

Par. (7)(d). Pub. L. 102–587, §6205(b)(2), substituted “under subdivision (b)” for “in proceedings under paragraph (1)(b)(7) of this section”.

1990—Par. (1)(b). Pub. L. 101–595, §103(1), inserted “including intermodal movements, terminal operations, cargo solicitation, forwarding and agency services, non-vessel-operating common carrier operations, and other activities and services integral to transportation sysetms,” after “generally,”.

Pars. (5) to (12). Pub. L. 101–595, §103(2), added pars. (5) to (12).

1981—Par. (1). Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission”, and added after subsec. (a) an undesignated paragraph respecting authority of Federal Maritime Commission. For prior transfers of functions, see Transfer of Functions note below.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Functions of Public Health Service and of all other officers and employees of Public Health Service, and functions of all agencies of or in Public Health Service transferred to Secretary of Health, Education, and Welfare by Reorg. Plan No. 3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, set out in the Appendix to Title 5. Secretary of Health, Education, and Welfare redesignated Secretary of Health and Human Services by section 509(b) of Pub. L. 96–88, which is classified to section 3508(b) of Title 20, Education.

All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished with such offices to be terminated not later than Dec. 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

Steamboat Inspection Service consolidated in Bureau of Marine Inspection and Navigation which was later abolished. Functions relating to inspection of vessels now vested in Commandant of the Coast Guard. See note preceding section 3 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 1710a of this Appendix; title 28 section 2342.

§877. Coastwise laws extended to island Territories and possessions

From and after February 1, 1922, the coastwise laws of the United States shall extend to the island Territories and possessions of the United States not covered thereby on June 5, 1920, and the Secretary of Transportation is directed prior to the expiration of such year to have established adequate steamship service at reasonable rates to accommodate the commerce and the passenger travel of said islands and to maintain and operate such service until it can be taken over and operated and maintained upon satisfactory terms by private capital and enterprise: Provided, That if adequate shipping service is not established by February 1, 1922, the President shall extend the period herein allowed for the establishment of such service in the case of any island Territory or possession for such time as may be necessary for the establishment of adequate shipping facilities therefor: And provided further, That the coastwise laws of the United States shall not extend to the Virgin Islands of the United States until the President of the United States shall, by proclamation, declare that such coastwise laws shall extend to the Virgin Islands and fix a date for the going into effect of same.

(June 5, 1920, ch. 250, §21, 41 Stat. 997; Ex. Ord. No. 6166, §12, eff. June 10, 1933; Apr. 16, 1936, ch. 228, 49 Stat. 1207; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Proc. No. 2695, eff. July 4, 1946, 11 F.R. 7517, 60 Stat. 1352; Aug. 6, 1981, Pub. L. 97–31, §12(47), 95 Stat. 157.)

Codification

Provisos of this section authorizing the government of Philippine Islands to regulate transportation between ports or places in Philippine Archipelago until Congress authorized registry of vessels owned in those islands, and providing that this section should not go into effect in Philippine Islands until after investigation and proclamation by President, omitted on authority of Proc. No. 2695 of 1946, set out under section 1394 of Title 22, Foreign Relations and Intercourse, which proclaimed independence of Philippines.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission”. For prior transfers of functions, see Transfer of Functions note below.

1936—Act Apr. 16, 1936, inserted last proviso.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Canton Island

Proc. No. 3215, Dec. 12, 1957, 72 Stat. c19, extended period for establishment of adequate shipping service for, and deferred extension of coastwise laws to, Canton Island.

§883. Transportation of merchandise between points in United States in other than domestic built or rebuilt and documented vessels; incineration of hazardous waste at sea

No merchandise, including merchandise owned by the United States Government, a State (as defined in section 2101 of the 1 title 46), or a subdivision of a State, shall be transported by water, or by land and water, on penalty of forfeiture of the merchandise (or a monetary amount up to the value thereof as determined by the Secretary of the Treasury, or the actual cost of the transportation, whichever is greater, to be recovered from any consignor, seller, owner, importer, consignee, agent, or other person or persons so transporting or causing said merchandise to be transported), between points in the United States, including Districts, Territories, and possessions thereof embraced within the coastwise laws, either directly or via a foreign port, or for any part of the transportation, in any other vessel than a vessel built in and documented under the laws of the United States and owned by persons who are citizens of the United States, or vessels to which the privilege of engaging in the coastwise trade is extended by section 808 of this Appendix or section 22 2 of this Act: Provided, That no vessel 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 later sold foreign in whole or in part, or placed under foreign registry, shall hereafter acquire the right to engage in the coastwise trade: Provided further, That no vessel which has acquired 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 which has later been rebuilt shall have the right thereafter to engage in the coastwise trade, unless the entire rebuilding, including the construction of any major components of the hull or superstructure of the vessel, is effected within the United States, its territories (not including trust territories), or its possessions: Provided further, That this section shall not apply to merchandise transported between points within the continental United States, including Alaska, over through routes heretofore or hereafter recognized by the Interstate Commerce Commission for which routes rate tariffs have been or shall hereafter be filed with said Commission when such routes are in part over Canadian rail lines and their own or other connecting water facilities: Provided further, That this section shall not become effective upon the Yukon River until the Alaska Railroad shall be completed and the Secretary of Transportation shall find that proper facilities will be furnished for transportation by persons citizens of the United States for properly handling the traffic: Provided further, That this section shall not apply to the transportation of merchandise loaded on railroad cars or to motor vehicles with or without trailers, and with their passengers or contents when accompanied by the operator thereof, when such railroad cars or motor vehicles are transported in any railroad car ferry operated between fixed termini on the Great Lakes as a part of a rail route, if such car ferry is owned by a common carrier by water and operated as part of a rail route with the approval of the Interstate Commerce Commission, and if the stock of such common carrier by water, or its predecessor, was owned or controlled by a common carrier by rail prior to June 5, 1920, and if the stock of the common carrier owning such car ferry is, with the approval of the Interstate Commerce Commission, now owned or controlled by any common carrier by rail and if such car ferry is built in and documented under the laws of the United States: Provided further, That upon such terms and conditions as the Secretary of the Treasury by regulation may prescribe, and, if the transporting vessel is of foreign registry, upon a finding by the Secretary of the Treasury, pursuant to information obtained and furnished by the Secretary of State, that the government of the nation of registry extends reciprocal privileges to vessels of the United States, this section shall not apply to the transportation by vessels of the United States not qualified to engage in the coastwise trade, or by vessels of foreign registry, of (a) empty cargo vans, empty lift vans, and empty shipping tanks, (b) equipment for use with cargo vans, lift vans, or shipping tanks, (c) empty barges specifically designed for carriage aboard a vessel and equipment, excluding propulsion equipment, for use with such barges, and (d) any empty instrument for international traffic exempted from application of the customs laws by the Secretary of the Treasury pursuant to the provisions of section 1322(a) of title 19, if the articles described in clauses (a) through (d) are owned or leased by the owner or operator of the transporting vessel and are transported for his use in handling his cargo in foreign trade; and (e) stevedoring equipment and material, if such equipment and material is owned or leased by the owner or operator of the transporting vessel, or is owned or leased by the stevedoring company contracting for the lading or unlading of that vessel, and is transported without charge for use in the handling of cargo in foreign trade: Provided further, That upon such terms and conditions as the Secretary of the Treasury by regulation may prescribe, and, if the transporting vessel is of foreign registry, upon his finding, pursuant to information furnished by the Secretary of State, that the government of the nation of registry extends reciprocal privileges to vessels of the United States, the Secretary of the Treasury may suspend the application of this section to the transportation of merchandise between points in the United States (excluding transportation between the continental United States and noncontiguous states, districts, territories, and possessions embraced within the coastwise laws) which, while moving in the foreign trade of the United States, is transferred from a non-self-propelled barge certified by the owner or operator to be specifically designed for carriage aboard a vessel and regularly carried aboard a vessel in foreign trade to another such barge owned or leased by the same owner or operator, without regard to whether any such barge is under foreign registry or qualified to engage in the coastwise trade: Provided further, That until April 1, 1984, and notwithstanding any other provisions of this section, any vessel documented under the laws of the United States and owned by persons who are citizens of the United States may, when operated upon a voyage in foreign trade, transport merchandise in cargo vans, lift vans, and shipping-tanks between points embraced within the coastwise laws for transfer to or when transferred from another vessel or vessels, so documented and owned, of the same operator when the merchandise movement has either a foreign origin or a foreign destination; but this proviso (1) shall apply only to vessels which that same operator owned, chartered or contracted for the construction of prior to November 16, 1979, and (2) shall not apply to movements between points in the contiguous United States and points in Hawaii, Alaska, the Commonwealth of Puerto Rico and United States territories and possessions. For the purposes of this section, after December 31, 1983, or after such time as an appropriate vessel has been constructed and documented as a vessel of the United States, the transportation of hazardous waste, as defined in section 6903(5) of title 42, from a point in the United States for the purpose of the incineration at sea of that waste shall be deemed to be transportation by water of merchandise between points in the United States: Provided, however, That the provisions of this sentence shall not apply to this transportation when performed by a foreign-flag ocean incineration vessel, owned by or under construction on May 1, 1982, for a corporation wholly owned by a citizen of the United States; the term “citizen of the United States”, as used in this proviso, means a corporation as defined in section 802(a) and (b) of this Appendix. The incineration equipment on these vessels shall meet all current United States Coast Guard and Environmental Protection Agency standards. These vessels shall, in addition to any other inspections by the flag state, be inspected by the United States Coast Guard, including drydock inspections and internal examinations of tanks and void spaces, as would be required of a vessel of the United States. Satisfactory inspection shall be certified in writing by the Secretary of Transportation. Such inspections may occur concurrently with any inspections required by the flag state or subsequent to but no more than one year after the initial issuance or the next scheduled issuance of the Safety of Life at Sea Safety Construction Certificate. In making such inspections, the Coast Guard shall refer to the conditions established by the initial flag state certification as the basis for evaluating the current condition of the hull and superstructure. The Coast Guard shall allow the substitution of an equivalent fitting, material, appliance, apparatus, or equipment other than that required for vessels of the United States if the Coast Guard has been satisfied that fitting, material, appliance, apparatus, or equipment is at least as effective as that required for vessels of the United States 3 Provided further, That for the purposes of this section, supplies aboard United States documented fish processing vessels, which are necessary and used for the processing or assembling of fishery products aboard such vessels, shall be considered ship's equipment and not merchandise: Provided further, That for purposes of this section, the term “merchandise” includes valueless material: Provided further, That this section applies to the transportation of valueless material or any dredged material regardless of whether it has commercial value, from a point or place in the United States or a point or place on the high seas within the Exclusive Economic Zone as defined in the Presidential Proclamation of March 10, 1983, to another point or place in the United States or a point or place on the high seas within that Exclusive Economic Zone: Provided further, That the transportation of any platform jacket in or on a 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 1333(a) of title 43, shall not be deemed transportation subject to this section if the launch barge has a launch capacity of 12,000 long tons or more, was built as of June 7, 1988, and is documented under the laws of the United States, and the platform jacket cannot be transported on and launched from a launch barge of lesser launch capacity that is identified by the Secretary of Transportation and is available for such transportation.

(June 5, 1920, ch. 250, §27, 41 Stat. 999; Ex. Ord. No. 6166, §12, eff. June 10, 1933; Apr. 11, 1935, ch. 58, 49 Stat. 154; July 2, 1935, ch. 355, 49 Stat. 442; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; 1950 Reorg. Plan No. 21, §204, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276; July 14, 1956, ch. 600, §1, 70 Stat. 544; July 7, 1958, Pub. L. 85–508, §27(a), 72 Stat. 351; July 5, 1960, Pub. L. 86–583, §1, 74 Stat. 321; Sept. 21, 1965, Pub. L. 89–194, 79 Stat. 823; Aug. 11, 1968, Pub. L. 90–474, 82 Stat. 700; Nov. 23, 1971, Pub. L. 92–163, §1, 85 Stat. 486; Oct. 3, 1978, Pub. L. 95–410, title II, §213, 92 Stat. 904; Nov. 16, 1979, Pub. L. 96–112, §4, 93 Stat. 848; Aug. 6, 1981, Pub. L. 97–31, §12(49), 95 Stat. 157; Dec. 29, 1982, Pub. L. 97–389, title V, §§502, 504, 96 Stat. 1954, 1956; Jan. 11, 1988, Pub. L. 100–239, §6(c)(1), 101 Stat. 1782; June 7, 1988, Pub. L. 101–329, §1(a), 102 Stat. 588; Nov. 4, 1992, Pub. L. 102–587, title V, §5501(b), 106 Stat. 5085.)

References in Text

Section 22 of this Act, referred to in text, is section 22 of act June 5, 1920, which was classified to section 13 of former Title 46, Shipping, and was repealed by Pub. L. 100–710, title II, §202(4), Nov. 23, 1988, 102 Stat. 4753.

The Presidential Proclamation of March 10, 1983, referred to in text, is Proc. No. 5030, Mar. 10, 1983, 48 F.R. 10605, which is set out as a note under section 1453 of Title 16, Conservation.

Prior Provisions

Provisions similar to those in this section were contained in act Feb. 17, 1898, ch. 26, §1, 30 Stat. 248, which was classified to section 290 of this Appendix.

Amendments

1992—Pub. L. 102–587, in first sentence, substituted “No merchandise, including merchandise owned by the United States Government, a State (as defined in section 2101 of the title 46), or a subdivision of a State,” for “No merchandise”.

1988—Pub. L. 100–329 inserted provision relating to alternate determination of penalty as based on actual cost of the transportation, and provisos defining term “merchandise” to include valueless material, making section applicable to valueless or dredged material, and relating to transportation of any platform jacket in or on a launch barge.

Pub. L. 100–239 struck out “of more than five hundred gross tons” after “no vessel” in second proviso.

1982—Pub. L. 97–389, §502, inserted provision relating to the transportation of hazardous waste, the proviso thereto for foreign-flag transport, and further provisions relating to standards for and the inspection of vessels engaged in such transport.

Pub. L. 97–389, §504, inserted proviso defining supplies aboard United States fish processing vessels used for fishery products manufacture as ship's equipment.

1981—Pub. L. 97–31 in fourth proviso substituted “Secretary of Transportation” for “Secretary of Commerce”. For prior transfers of functions, see Transfer of Functions note below.

1979—Pub. L. 96–112 inserted proviso that, until April 1, 1984, and notwithstanding any other provisions of this section, any vessel documented under the laws of the United States and owned by citizens of the United States could, when operated upon a voyage in foreign trade, transport merchandise in cargo vans, lift vans, and shipping-tanks between points embraced within the coastwise laws for transfer to or when transferred from another vessel or vessels, so documented and owned, of the same operator when the merchandise movement had either a foreign origin or a foreign destination, but that the proviso would apply only to vessels which that same operator owned, chartered or contracted for the construction of prior to Nov. 16, 1979, and would not apply to movements between points in the contiguous United States and points in Hawaii, Alaska, the Commonwealth of Puerto Rico and United States territories and possessions.

1978—Pub. L. 95–410, in first sentence, substituted “forfeiture of merchandise” for “forfeiture thereof” and inserted parenthetical text for forfeiture of a monetary amount up to the value of the merchandise as determined by the Secretary of the Treasury to be recovered from any consignor, seller, owner, importer, consignee, agent, or other person or persons transporting or causing the merchandise to be transported.

1971—Pub. L. 92–163 inserted “and equipment, excluding propulsion equipment, for use with such barges” after “(c) empty barges specifically designed for carriage aboard a vessel” and inserted reciprocity proviso reciprocally permitting foreign-flag specialty barges, specifically designed and regularly carried aboard a barge carrying ship in foreign trade to carry export or import cargo between United States points which has been transferred from one such barge to another.

1968—Pub. L. 90–474 in final proviso designated existing provisions relating to empty cargo vans, empty lift vans, and empty shipping tanks as cl. (a), added cls. (b) to (d), saved modifying provisions relating to empty cargo vans, empty lift vans, and empty shipping tanks so as to render them applicable to cls. (a) to (d), and added cl. (e).

1965—Pub. L. 89–194 inserted proviso that section should not apply to the transportation of empty cargo vans, lift vans, and shipping tanks by vessels of the United States not qualified to engage in the coastwise trade of by vessels of foreign registry so long as such vans or tanks are owned or leased by the owner or operator of the transporting vessels and are being transported for use in the carriage of goods in foreign trade.

1960—Pub. L. 86–583 prohibits the operation in the coastwise trade of a rebuilt vessel unless the entire rebuilding, including the construction of any major components of the hull and superstructure of the vessel, is accomplished in the United States.

1958—Pub. L. 85–508 substituted “including Alaska” for “excluding Alaska”.

1956—Act July 14, 1956, inserted proviso to prohibit the operation in coastwise trade of vessels of more than 500 gross tons which have been rebuilt outside the United States.

1935—Act July 2, 1935, amended section generally.

Act Apr. 11, 1935, inserted fifth proviso.

Effective Date of 1988 Amendment

Section 6(c)(2) of Pub. L. 100–239 provided that: “Paragraph (1) of this subsection [amending this section] does not apply to a vessel under contract to be purchased or rebuilt entered into before July 28, 1987, if that vessel is rebuilt before July 28, 1990.”

Effective Date of 1960 Amendment

Section 4 of Pub. L. 86–583 provided that: “This Act [amending this section and section 883a of this Appendix] shall be effective from the time of enactment [July 5, 1960] hereof: Provided, however, That no vessel shall be deemed to have lost its coastwise privileges as a result of the amendments made by this Act if it is rebuilt within the United States, its Territories (not including trust territories), or its possessions under a contract executed before such date of enactment and if the work of rebuilding is commenced not later than twenty-four months after such date of enactment.”

Effective Date of 1956 Amendment

Section 4 of act July 14, 1956, provided that: “This Act [amending this section and enacting sections 883a and 883b of this Appendix] shall be effective from the date of enactment [July 14, 1956] hereof: Provided, however, That no vessel shall be deemed to have lost its coastwise privileges hereunder if it is rebuilt under a contract entered into before such date of enactment and if the work of rebuilding is commenced not later than six months after such date of enactment.”

Repeals

For effect of subtitle IV (§10101 et seq.) of Title 49, Transportation, see note set out preceding section 801 of this Appendix.

Transfer of Functions

Functions conferred upon Secretary of Commerce by provisions of Reorg. Plan No. 21 of 1950 to remain vested in Secretary except to extent inconsistent with sections 101(b) and 104(b) of Reorg. Plan No. 7 of 1961. See section 202 of Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

“Secretary of Commerce” substituted in text for “United States Maritime Commission” on authority of Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix, section 306 of which abolished United States Maritime Commission and section 204 of which transferred to Secretary of Commerce such Commission's functions not transferred to Federal Maritime Board.

Previously, “United States Maritime Commission” substituted for “Shipping Board”. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. Executive and administrative functions of United States Maritime Commission transferred to Chairman thereof by Reorg. Plan No. 6 of 1949, eff. Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069, set out under section 1111 of this Appendix.

Nonapplicability of Pub. L. 100–329 to Certain Vessels

Section 5501(c) of Pub. L. 102–587 provided that: “The Act of June 7, 1988 (Public Law 100–329; 102 Stat. 588) [amending this section and section 316 of this Appendix, and enacting provisions set out above and 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 August 1, 1989, the certificate specified in section 27A of the Merchant Marine Act, 1920 (46 App. U.S.C. 883–1).”

Launch Barge Inventory; Purpose; Development, Maintenance, and Updating; Contents; Publication of Initial and Current Inventory

Section 1(b) of Pub. L. 100–329 provided that:

“(1) For purposes of interpreting the proviso pertaining to transportation of any platform jacket by launch barge, as added by subsection (a) of this section to section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), the Secretary of Transportation shall develop, maintain, and periodically update an inventory of launch barges with less than a launch capacity of 12,000 long tons that are qualified to engage in the coastwise trade. Each launch barge listed on such inventory shall be identified by its name, launch capacity, length, beam, depth, and other distinguishing characteristics. For each such launch barge, the name and address of the person to whom inquiries may be made shall also be included on the inventory. A launch barge not listed on such inventory shall be deemed not to be ‘a launch barge of lesser launch capacity identified by the Secretary of Transportation’ within the meaning of such proviso to section 27 of the Merchant Marine Act, 1920.

“(2) Not later than 15 days after the date of enactment of this Act [June 7, 1988], the Secretary of Transportation shall publish in the Federal Register an initial inventory of launch barges developed and maintained in accordance with paragraph (1) of this subsection.

“(3) Not later than 60 days after the date of enactment of this Act [June 7, 1988], and periodically thereafter, the Secretary shall publish in the Federal Register a current inventory of launch barges developed, maintained, and updated in accordance with paragraph (1) of this subsection.”

Transportation of Municipal Sewage Sludge

Section 3 of Pub. L. 100–329 provided that: “Notwithstanding the provisions of section 1 of this Act [amending this section and enacting provisions set out as a note above], 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

Section 4 of Pub. L. 100–329 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)), 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.

Section 5 of Pub. L. 100–329 provided that: “Notwithstanding the provisions of section 1 of this Act [amending this section and enacting provisions set out as a note above], the Secretary of the department in which the Coast Guard is operating may issue a certificate of documentation under section 12106 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 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.”

Transportation of Merchandise or Passengers Within Alaska by Foreign Built Hovercraft

Pub. L. 95–599, title I, §146, Nov. 6, 1978, 92 Stat. 2714, provided that:

“(a) Effective during the five-year period beginning on the date of enactment of this Act [Nov. 6, 1978], nothing in section 27 of the Merchant Marine Act, 1920 [this section], or any other provision of law restricting the coastwise trade to vessels of the United States shall prohibit the transportation within the State of Alaska of merchandise or passengers by foreign built hovercraft.

“(b) For the purpose of this section the term ‘hovercraft’ means a vehicle which travels over land or water in a cushion of air generated by such vehicle.”

Report to Congress Regarding Effect of Reciprocity Provisions

Section 2 of Pub. L. 92–163 authorized the Secretary of the Treasury, for a period of five years following Nov. 23, 1971, to make a report at the beginning of each regular session to the Congress regarding activities under Pub. L. 92–163, including but not limited to the extent to which foreign governments are extending reciprocal privileges to the vessels of the United States.

Regulations

Section 3 of Pub. L. 86–583 provided that: “The Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out the purposes of this Act [amending sections 883 and 883a of this Appendix].”

Admission of Alaska as State

Effectiveness of amendment of this section by Pub. L. 85–508 was dependent upon the admission of Alaska into the Union under section 8(b) of Pub. L. 85–508. Admission was accomplished Jan. 3, 1959, on issuance of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, as required by sections 1 and 8(c) of Pub. L. 85–508. See notes preceding section 21 of Title 48, Territories and Insular Possessions.

Jurisdiction Over Common Carriers Between Ports in Hawaii and Other Ports

Pub. L. 86–3, §18(a), Mar. 18, 1959, 73 Stat. 12, as amended Pub. L. 86–624, §46, July 12, 1960, 74 Stat. 423, provided that: “Nothing contained in this Act shall be construed as depriving the Federal Maritime Board [now Secretary of Transportation] of the exclusive jurisdiction heretofore conferred on it over common carriers engaged in transportation by water between any port in the State of Hawaii and other ports in the United States, or possessions, or as conferring on the Interstate Commerce Commission jurisdiction over transportation by water between any such ports.”

[Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 702 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 701 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appropriate, see section 205 of Pub. L. 104–88, set out as a note under section 701 of Title 49.]

Jurisdiction Over Common Carriers Between Ports in Alaska and Other Ports

Section 27(b) of Pub. L. 85–508 provided that: “Nothing contained in this or any other Act shall be construed as depriving the Federal Maritime Board [now Secretary of Transportation] of the exclusive jurisdiction heretofore conferred on it over common carriers engaged in transportation by water between any port in the State of Alaska and other ports in the United States, its Territories or possessions, or as conferring upon the Interstate Commerce Commission jurisdiction over transportation by water between any such ports.”

[Interstate Commerce Commission abolished and functions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 702 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 701 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appropriate, see section 205 of Pub. L. 104–88, set out as a note under section 701 of Title 49.]

Transportation of Lumber to Puerto Rico

Pub. L. 87–877, §4, Oct. 24, 1962, 76 Stat. 1201, allowed for suspension of this section during a 1-year period beginning Oct. 24, 1962, with respect to transportation of lumber to Puerto Rico from ports or terminal areas in the United States if Secretary of Commerce determined that no domestic vessel was reasonably available.

Transportation of Coal Between Points in United States in Canadian Vessels

Act Aug. 7, 1956, ch. 1028, 70 Stat. 1090, permitted Canadian vessels to transport coal to Ogdensburg, N.Y., from other points in the United States, on the Great Lakes, or their connecting or tributary waters for a period ending June 30, 1957.

Transportation of Iron Ore in Vessels of Canadian Registry

Act June 24, 1952, ch. 458, 66 Stat. 156, provided for the transportation of iron ore and terminated on Dec. 31, 1952. Similar provisions were contained in the following acts:

Mar. 29, 1951, ch. 25, 65 Stat. 28.

June 30, 1950, ch. 427, §5, 64 Stat. 309.

Mar. 28, 1949, ch. 36, 63 Stat. 16.

Mar. 24, 1948, ch. 144, 62 Stat. 84.

Jan. 27, 1942, ch. 21, 56 Stat. 19, as amended Aug. 1, 1942, ch. 544, 56 Stat. 735, and repealed July 25, 1947, ch. 327, §2b, 61 Stat. 451, eff. six months after July 25, 1947.

May 31, 1941, ch. 158, 55 Stat. 236.

Transportation of Grain Between United States Ports on Great Lakes by Vessels of Canadian Registry During 1951

Act Oct. 10, 1951, ch. 459, 65 Stat. 371, provided for the transportation of grain and terminated on Dec. 31, 1951.

Transportation of Merchandise Between Hyder, Alaska, and United States

Act July 30, 1947, ch. 387, 61 Stat. 632, as amended June 28, 1948, ch. 693, 62 Stat. 1067, provided for the transportation of merchandise between Hyder, Alaska, and United States and terminated on June 30, 1949.

Cross References

Corporation meeting certain conditions deemed citizen for purposes of this section, see section 883–1 of this Appendix.

Provisions restricting coastwise transportation to vessels of United States not applicable to American Samoa, see section 1664 of Title 48, Territories and Insular Possessions.

Transportation of passengers and merchandise in Canadian vessels between points in Alaska and United States, see section 289b of this Appendix.

Transportation of passengers in foreign vessels, see section 289 of this Appendix and notes thereunder.

Section Referred to in Other Sections

This section is referred to in sections 292, 316, 446b, 883–1 of this Appendix; title 19 section 1554; title 46 sections 3704, 12101, 12106, 14305.

1 So in original. The word “the” probably should not appear.

2 See References in Text note below.

3 So in original. Probably should be followed by a colon.

§883–1. Corporation as citizen; fisheries and transportation of merchandise or passengers between points in United States; parent and subsidiary corporations; domestic built vessels; certificate; surrender of documents on change in status

Notwithstanding any other provision of law, a corporation incorporated under the laws of the United States or any State, Territory, District, or possession thereof, shall be deemed to be a citizen of the United States for the purposes of and within the meaning of that term as used in sections 316, 808, 835, and 883 of this Appendix, and the laws relating to the documentation of vessels, if it is established by a certificate filed with the Secretary of the Treasury as hereinafter provided, that—

(a) a majority of the officers and directors of such corporation are citizens of the United States;

(b) not less than 90 per centum of the employees of such corporation are residents of the United States;

(c) such corporation is engaged primarily in a manufacturing or mineral industry in the United States or any Territory, District, or possession thereof;

(d) the aggregate book value of the vessels owned by such corporation does not exceed 10 per centum of the aggregate book value of the assets of such corporation; and

(e) such corporation purchases or produces in the United States, its Territories, or possessions not less than 75 per centum of the raw materials used or sold in its operations


but 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 as a service for a parent or subsidiary corporation and except when such vessel is under demise or bareboat charter at prevailing rates for use otherwise than in the domestic noncontiguous trades from any such corporation to a carrier subject to jurisdiction under subchapter II of chapter 135 of title 49, which otherwise qualifies as a citizen under section 802 of this Appendix, and which is not connected, directly or indirectly, by way of ownership or control with such corporation.

As used herein (1), the term “parent” means a corporation which controls, directly or indirectly, at least 50 per centum of the voting stock of such corporation, and (2), the term “subsidiary” means a corporation not less than 50 per centum of the voting stock of which is controlled, directly or indirectly, by such corporation or its parent, but no corporation shall be deemed to be a “parent” or “subsidiary” hereunder unless it is incorporated under the laws of the United States, or any State, Territory, District, or possession thereof, and there has been filed with the Secretary of the Treasury a certificate as hereinafter provided.

Vessels built in the United States and owned by a corporation meeting the conditions hereof which are non-self-propelled or which, if self-propelled, are of less than five hundred gross tons shall be entitled to documentation under the laws of the United States, and except as restricted by this section, shall be entitled to engage in the coastwise trade and, 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.

A corporation 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 shall file with the Secretary of the Treasury of the United States a certificate under oath, in such form and at such times as may be prescribed by him, executed by its duly authorized officer or agent, establishing that such corporation complies with the conditions of this section above set forth. A “parent” or “subsidiary” of such corporation shall likewise file with the Secretary of the Treasury a certificate under oath, in such form and at such time as may be prescribed by him, executed by its duly authorized officer or agent, establishing that such “parent” or “subsidiary” complies with the conditions of this section above set forth, before such corporation may transport any merchandise or passengers for such parent or subsidiary. If any material matter of fact alleged in any such certificate which, within the knowledge of the party so swearing is not true, there shall be a forfeiture of the vessel (or the value thereof) documented or operated hereunder in respect to which the oath shall have been made. If any vessel shall transport merchandise for hire in violation of this section, such merchandise shall be forfeited to the United States. If any vessel shall transport passengers for hire in violation of this section, such vessel shall be subject to a penalty of $200 for each passenger so transported. Any penalty or forfeiture incurred under this section may be remitted or mitigated by the Secretary of the Treasury under the provisions of section 2107(b) of title 46.

Any corporation which has filed a certificate with the Secretary of the Treasury as provided for herein shall cease to be qualified under this section if there is any change in its status whereby it no longer meets the conditions above set forth, and any documents theretofore issued to it, pursuant to the provisions of this section, shall be forthwith surrendered by it to the Secretary of the Treasury.

(June 5, 1920, ch. 250, §27A, as added Sept. 2, 1958, Pub. L. 85–902, 72 Stat. 1736; amended Dec. 29, 1995, Pub. L. 104–88, title III, §321(2), 109 Stat. 950.)

Codification

In fourth par., “section 2107(b) of title 46” substituted for “section 7 of title 46, United States Code” on authority of Pub. L. 98–89, §2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of which enacted Title 46, Shipping.

Amendments

1995—Pub. L. 104–88 substituted “carrier subject to jurisdiction under subchapter II of chapter 135 of title 49, which otherwise” for “common or contract carrier subject to part 3 of the Interstate Commerce Act, as amended, which otherwise”.

Effective Date of 1995 Amendment

Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 701 of Title 49, Transportation.

Section Referred to in Other Sections

This section is referred to in title 30 section 1522; title 46 section 14305.

§883a. Reports required of United States vessels rebuilt abroad; penalty for failure to report; mitigation of penalty

If any vessel of more than five hundred gross tons documented under the laws of the United States, or last documented under such laws, is rebuilt, 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, a report of the circumstances of such rebuilding shall be made to the Secretary of the Treasury, upon the first arrival of the vessel thereafter at a port within the customs territory of the United States, if rebuilt outside the United States, its Territories (not including trust territories), or its possessions, or, in any other case, upon completion of the rebuilding, in accordance with such regulations as the Secretary may prescribe. If the required report is not made, the vessel, together with its tackle, apparel, equipment, and furniture, shall be forfeited, and the master and owner shall each be liable to a penalty of $200. Any penalty or forfeiture incurred under this Act may be remitted or mitigated by the Secretary under the provisions of section 2107(b) of title 46.

(July 14, 1956, ch. 600, §2, 70 Stat. 544; July 5, 1960, Pub. L. 86–583, §2, 74 Stat. 321.)

References in Text

This Act, referred to in text, means act July 14, 1956, ch. 600, 70 Stat. 544, as amended, which enacted sections 883a, and 883b of this Appendix, amended section 883 of this Appendix, and enacted provisions set out as a note under section 883 of this Appendix. For complete classification of this Act to the Code, see Tables.

Codification

“Section 2107(b) of title 46” substituted in text for “section 5294 of the Revised Statutes of the United States, as amended (U.S.C., title 46, sec. 7)” on authority of Pub. L. 98–89, §2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of which enacted Title 46, Shipping.

Section was enacted as part of act July 14, 1956, and not as part of act June 5, 1920, ch. 250, 41 Stat. 988, known as the Merchant Marine Act, 1920, which comprises this chapter.

Amendments

1960—Pub. L. 86–583 provided for a report of the rebuilding of any part of the vessel, including the construction of major components of the hull and superstructure of the vessel, and for a report upon completion of the rebuilding in certain cases.

Effective Date of 1960 Amendment

Amendment by Pub. L. 86–583 effective July 5, 1960, and effect on rebuilding contracts executed before such date, see section 4 of Pub. L. 86–583, set out as a note under section 883 of this Appendix.

Effective Date

Section effective July 14, 1956, see section 4 of act July 14, 1956, set out as an Effective Date of 1956 Amendment note under section 883 of this Appendix.

Regulations

Secretary of the Treasury to prescribe regulations to carry out the purposes of this section, see section 3 of Pub. L. 86–583, set out as a note under section 883 of this Appendix.

Section Referred to in Other Sections

This section is referred to in title 46 section 14305.

§883b. Regulations

The Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out the purposes of this Act.

(July 14, 1956, ch. 600, §3, 70 Stat. 544.)

References in Text

This Act, referred to in text, means act July 14, 1956, ch. 600, 70 Stat. 544, as amended, which enacted sections 883a, and 883b of this Appendix, amended section 883 of this Appendix, and enacted provisions set out as a note under section 883 of this Appendix. For complete classification of this Act to the Code, see Tables.

Codification

Section was enacted as part of act July 14, 1956, and not as part of act June 5, 1920, ch. 250, 41 Stat. 988, known as the Merchant Marine Act, 1920, which comprises this chapter.

Effective Date

Section effective July 14, 1956, see section 4 of act July 14, 1956, set out as an Effective Date of 1956 Amendment note under section 883 of this Appendix.

§884. Charges for transportation subject to interstate transportation provisions

No carrier shall 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, which is based in whole or in part on the fact that the persons or property affected thereby is to be transported to, or has been transported from, any port in a possession or dependency of the United States, or in a foreign country, by a carrier by water in foreign commerce, any lower rate, fare, or charge than that charged, collected, or received by it for the transportation of persons, or of a like kind of property, for the same distance, in the same direction, and over the same route, in connection with commerce wholly within the United States, unless the vessel so transporting such persons or property is, or unless it was at the time of such transportation by water, documented under the laws of the United States. Whenever the Secretary of Transportation is of the opinion, however, that adequate shipping facilities to or from any port in a possession or dependency of the United States or a foreign country are not afforded by vessels so documented he shall certify this fact to the Surface Transportation Board, and the Board may, by order, suspend the operation of the provisions of this section with respect to the rates, fares, and charges for the transportation by rail of persons and property transported from, or to be transported to such ports, for such length of time and under such terms and conditions as he may prescribe in such order, or in any order supplemental thereto. Such suspension of operation of the provisions of this section may be terminated by order of the Board whenever the Secretary of Transportation is of the opinion that adequate shipping facilities by such vessels to such ports are afforded and shall so certify to the Board.

(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; Aug. 6, 1981, Pub. L. 97–31, §12(50), 95 Stat. 157; Dec. 29, 1995, Pub. L. 104–88, title III, §321(3), 109 Stat. 950.)

Codification

“Subtitle IV of title 49” substituted in text for “the Interstate Commerce Act [49 U.S.C. 1 et seq.]” on authority of Pub. L. 95–473, §3(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which enacted subtitle IV of Title 49, Transportation.

Amendments

1995—Pub. L. 104–88 struck out “common” after first reference to “carrier”, substituted “Surface Transportation Board” for “Interstate Commerce Commission”, and substituted “Board” for “commission” wherever appearing.

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in two places and “he” for “it”. For prior transfers of functions, see Transfer of Functions note below.

Effective Date of 1995 Amendment

Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 701 of Title 49, Transportation.

Repeals

For effect of subtitle IV (§10101 et seq.) of Title 49, Transportation, see note set out preceding section 801 of this Appendix.

Transfer of Functions

“Maritime Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§885. Association of marine insurance companies; application of antitrust laws

(a) Whenever used in this section—

(1) The term “association” means any association, exchange, pool, combination, or other arrangement for concerted action; and

(2) The term “marine insurance companies” means any persons, companies, or associations, authorized to write marine insurance or reinsurance under the laws of the United States or of a State, Territory, District, or possession thereof.


(b) Nothing contained in the “antitrust laws” as designated in section 12 of title 15, shall be construed as declaring illegal an association entered into by marine insurance companies for the following purposes: To transact a marine insurance and reinsurance business in the United States and in foreign countries and to reinsure or otherwise apportion among its membership the risks undertaken by such association or any of the component members.

(June 5, 1920, ch. 250, §29, 41 Stat. 1000.)

§887. Partial invalidity

If any provision of this Act is declared unconstitutional or the application of any provision to certain circumstances be held invalid, the remainder of such Act and the application of such provisions to circumstances other than those as to which it is held invalid shall not be affected thereby.

(June 5, 1920, ch. 250, §36, 41 Stat. 1007.)

References in Text

This Act, referred to in text, means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to this chapter. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

§888. Definitions

When used in this Act, unless the context otherwise requires, the terms “person”, “vessel”, “documented under the laws of the United States”, and “citizen of the United States” shall have the meaning assigned to them by sections 801, 802, and 803 of this Appendix; and the term “alien” means any person not a citizen of the United States.

(June 5, 1920, ch. 250, §37, 41 Stat. 1008; Sept. 21, 1959, Pub. L. 86–327, §2, 73 Stat. 597.)

References in Text

This Act, referred to in text, means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to this chapter. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

Codification

The words “the term ‘commission’ means the United States Maritime Commission;” were omitted preceding the definition of “alien” in view of Reorg. Plan No. 21 of 1950, §§204, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277, set out under section 1111 of this Appendix, which abolished United States Maritime Commission and transferred its functions to Federal Maritime Board and to Secretary of Commerce.

Amendments

1959—Pub. L. 86–327 substituted “sections 1 and 2 of the ‘Shipping Act, 1916,’ as amended” for “sections 1 and 2 of the ‘Shipping Act, 1916,’ as amended by this Act”, which sections are referred to in the text as “sections 801, 802, and 803 of this Appendix” for purposes of codification.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, and “United States Maritime Commission” substituted in text for “board” and “Shipping Board”, meaning United States Shipping Board, respectively. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. Executive and administrative functions of United States Maritime Commission transferred to Chairman thereof by Reorg. Plan No. 6 of 1949, eff. Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069 set out under section 1111 of this Appendix.

Section Referred to in Other Sections

This section is referred to in title 46 section 31329.

§889. Short title

This Act may be cited as the Merchant Marine Act, 1920.

(June 5, 1920, ch. 250, §39, 41 Stat. 1008.)

References in Text

This Act, referred to in text, means act June 5, 1920, ch. 250, 41 Stat. 988, as amended, known as the Merchant Marine Act, 1920, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to this chapter. For complete classification of this Act to the Code, see Tables.

CHAPTER 24A—MERCHANT MARINE ACT, 1928

Sec.
891.
Declaration of policy.
891b.
Vessels of Secretary; remodeling and improving.
891c.
Replacement vessels.
891u.
Definitions.
891v.
Reaffirmation of steamship line policy.
891w.
Ship operations; allocations.
891x.
Short title.

        

Chapter Referred to in Other Sections

This chapter is referred to in section 1114 of this Appendix.

§891. Declaration of policy

The policy and the primary purpose declared in section 861 of this Appendix are confirmed.

(May 22, 1928, ch. 675, §1, 45 Stat. 689.)

§891b. Vessels of Secretary; remodeling and improving

In addition to his power to recondition and repair vessels under section 871 of this Appendix, the Secretary of Transportation may remodel and improve vessels owned by the United States and in his possession or under his control, so as to equip them adequately for competition in the foreign trade of the United States. Any vessel so remodeled or improved shall be documented under the laws of the United States and shall remain documented under such laws for not less than five years from the date of the completion of the remodeling or improving and so long as there remains due the United States any money or interest on account of such vessel, and during such period it shall be operated only on voyages which are not exclusively coastwise.

(May 22, 1928, ch. 675, §202, 45 Stat. 690; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(51), 95 Stat. 157.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” and “his” for “its” in three places. For prior transfers of functions, see Transfer of Functions note below.

Transfer of Functions

“United States Maritime Commission” substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§891c. Replacement vessels

The necessity for the replacement of vessels owned by the United States and in the possession or under the control of the Secretary of Transportation and the construction for the Secretary of Transportation of additional up-to-date cargo, combination cargo and passenger, and passenger ships, to give the United States an adequate merchant marine, is recognized, and the Secretary of Transportation is authorized and directed to present to Congress from time to time, recommendations setting forth what new vessels are required for permanent operation under the United States flag in foreign trade, and the estimated cost thereof, to the end that Congress may, from time to time, make provision for replacements and additions. All vessels built for the Secretary of Transportation shall be built in the United States, and they shall be planned with reference to their possible usefulness as auxiliaries to the naval and military services of the United States.

(May 22, 1928, ch. 675, §203, 45 Stat. 690; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(52), 95 Stat. 157.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in four places. For prior transfers of functions, see Transfer of Functions note below.

Transfer of Functions

“Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§891u. Definitions

(a) When used in this Act, and for the purposes of this Act only, the words “foreign trade” mean trade between the United States, its Territories or possessions, or the District of Columbia and a foreign country: Provided, however, That the loading or the unloading of cargo, mail, or passengers at any port in any Territory or possession of the United States shall be construed to be foreign trade if the stop at such Territory or possession is an intermediate stop on what would otherwise be a voyage in foreign trade.

(b) When used in this Act the term “citizen of the United States” includes a corporation, partnership, or association only if it is a citizen of the United States within the meaning of section 802 of this Appendix.

(May 22, 1928, ch. 675, §703, 45 Stat. 698.)

References in Text

This Act, referred to in text, means act May 22, 1928, ch. 675, 45 Stat. 689, as amended, known as the Merchant Marine Act, 1928, which is classified generally to this chapter. For complete classification of this Act to the Code, see References in Text note set out under section 891x of this Appendix and Tables.

§891v. Reaffirmation of steamship line policy

The policy and the primary purpose declared in section 866 of this Appendix are reaffirmed.

(May 22, 1928, ch. 675, §704, 45 Stat. 698.)

§891w. Ship operations; allocations

In the allocations of the operations of the ships, the Secretary of Transportation shall distribute them as far as possible and without detriment to the service among the various ports of the country.

(May 22, 1928, ch. 675, §705, 45 Stat. 698; Ex. Ord. No. 6166, §12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, §204, title IX, §904, 49 Stat. 1987, 2016; Aug. 6, 1981, Pub. L. 97–31, §12(53), 95 Stat. 157.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Maritime Commission”. For prior transfers of functions, see Transfer of Functions note below.

Transfer of Functions

“Maritime Commission”, meaning United States Maritime Commission, substituted in text for “board”, meaning United States Shipping Board. For dissolution of Board and transfer of functions to United States Maritime Commission, see Ex. Ord. No. 6166 and act June 29, 1936. Ex. Ord. No. 6166 is set out as a note under section 901 of Title 5, Government Organization and Employees. For subsequent transfers of functions, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§891x. Short title

This Act may be cited as the “Merchant Marine Act, 1928”.

(May 22, 1928, ch. 675, §706, 45 Stat. 698.)

References in Text

This Act, referred to in text, means act May 22, 1928, ch. 675, 45 Stat. 689, as amended, which enacted this chapter, and amended sections 866 and 869 of this Appendix, section 654 of former Title 39, The Postal Service, and sections 870 and 880 of former Title 46, Shipping. For complete classification of this Act to the Code, see Tables.

 10

CHAPTER 27—MERCHANT MARINE ACT, 1936

SUBCHAPTER I—DECLARATION OF POLICY

Sec.
1101.
Fostering development and maintenance of merchant marine.

        

SUBCHAPTER II—CREATION AND FUNCTIONS OF MARITIME AGENCIES

1111.
Powers and duties of agencies.
(a),
(b) Repealed.
(c)
Records of meetings; seal; rules and regulations.
(d)
Expenditures.
(e)
Officers and employees.
(f)
Traveling and subsistence expenses; pay for military officer on assignment.
1111a.
Administrative expenses; limitations.
1112.
Operation of property by Secretary.
1114.
Transfer of powers; rules and orders.
(a)
Transfer of functions, powers, and duties.
(b)
Rules and regulations.
(c)
Enforcement of orders; penalties for violations.
1115.
Discrimination at ports by carriers by water against other carriers.
1116.
Construction fund.
1116a.
Application to obligations against emergency ship construction fund.
1117.
Power to contract; audit of accounts; reports of Comptroller General.
1118.
Reports to Congress.
1119.
Authorization of appropriations.
1120.
Survey of existing merchant marine for creation of adequate American-owned fleet.
1121.
Investigations, studies, records, etc.
(a)
Suitable ocean routes and lines to foreign ports; vessels and costs of operation.
(b)
Bulk cargo carrying services.
(c)
Vessels required in proposed routes.
(d)
Cost of construction in United States and abroad.
(e)
Relative cost of operation under laws of United States and foreign countries.
(f)
Foreign subsidies.
(g)
Shipyards.
(h)
Laws applicable to aircraft.
(i)
Transportation to foreign ports of cotton, coal, lumber, and cement.
(j)
New designs of vessels; intercoastal and inland water transportation.
1121–1.
Priority loading for vessels engaged in coastwise transportation of coal; exception, report to Congress.
1121–2.
National Maritime Enhancement Institutes.
(a)
Designation by Secretary of Transportation.
(b)
Activities.
(c)
Submission of applications.
(d)
Designation criteria.
(e)
Awards.
1122.
Maritime problems; cooperation with others; cargo carriage; recommendations.
(a)
Study of maritime problems.
(b)
Inducing preferences for American vessels; construction of super-liners.
(c)
Collaboration with owners and builders.
(d)
Liaison with other agencies and trade organizations.
(e)
Repealed.
(f)
Development and implementation of new methods of cargo carriage; preferences for cargo containers.
(g)
Recommendations for further legislation.
1122a.
Vessel utilization and performance reports; filing; civil penalty; lien upon vessel; remission or mitigation of penalty.
1122b.
Mobile trade fairs.
(a)
Use of United States flag vessels and aircraft insofar as practicable.
(b)
Technical and financial assistance; exceptions.
(c)
Use of foreign currencies.
(d)
Report to Congress.
1123.
Obsolete tonnage; tramp service; relative costs at yards.
(a)
Removal of obsolete tonnage.
(b)
Tramp shipping; participation in by Americans.
(c)
Relative cost of construction at different yards; equalization.
1124.
Witnesses.
(a)
Summoning; oaths; production of books and papers; fees.
(b)
Refusal to obey subpena; court orders; contempt.
1125.
Acquisition of vessels.
1125a.
Construction, repair, etc., of vessels for Government agencies.
1126–1.
Training of future naval officers under Naval Reserve Officer Training Corps programs at merchant marine academies for promotion of maximum integration of naval and merchant marine seapower of Nation.

        

SUBCHAPTER III—AMERICAN SEAMEN

1131.
Manning and wage scales; subsidy contracts.
(a)
Investigation of wages and working conditions; establishment of wage and manning scales; incorporation in subsidy contracts.
(b)
Subsidy contracts; provisions relative to officers and crew.

        

SUBCHAPTER V—CONSTRUCTION-DIFFERENTIAL SUBSIDY

1151.
Subsidy authorized for vessels to be operated in foreign trade.
(a)
Application for subsidy for construction; conditions precedent to granting.
(b)
Submission of plans to Navy Department; certification of approval.
(c)
Application for subsidy for reconstruction or reconditioning; conditions precedent to granting; contracts.
1152.
Construction of vessels; bids; subsidies.
(a)
Approval of bids; contract with bidder; acceptance of negotiated price; shipyard records, availability; contract with applicant or qualified citizen for purchase of vessel.
(b)
Basis for fixing subsidy; cost of construction in foreign yards; annual recomputation and publication of foreign cost; limitation on construction differential; report on American shipbuilding industry.
(c)
Terms of sale of vessel to purchaser.
(d)
Repealed.
(e)
Construction in navy yards; sales to citizens; terms.
(f)
Survey of shipbuilding capability; correction of inadequacies; reimbursement of certain vessel construction and delivery expenses.
(g)
Sale of vessels acquired by Secretary.
(h)
Installation or removal of national defense features; title to such features.
(i)
Plans, specifications, and proposals for national defense features; certification of approval.
1153.
Documentation of completed vessel under laws of United States; delivery to purchaser; first mortgage to secure deferred payments.
1154.
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.
1155.
Eligible shipyards; materials; conditions of contracts; limitation to American shipyards; American materials, waiver; ability of bidders; filing bids and data.
1156.
Operation of subsidy constructed vessel limited to foreign trade; repayments to Secretary for deviations.
1157.
Construction of new vessel to replace obsolete; purchase of old vessel by Secretary; bond of seller against liens.
1158.
Disposition of vessels transferred to Maritime Administration of Department of Transportation.
1159.
Vessels to be operated in domestic trade; terms and conditions of construction aid and sale to purchaser.
1160.
Acquisition of obsolete vessels.
(a)
Definitions.
(b)
Promotion of construction of new vessels; allowance on obsolete vessels.
(c)
Utility value of new vessel; gross tonnage.
(d)
Amount of allowance on obsolete vessel; determination of amount.
(e)
Recognition of gain for income tax purposes; basis for gain or loss.
(f)
Report to Congress.
(g)
Use of vessels 25 years old or more.
(h)
Repealed.
(i)
Exchange of vessels; valuation; scrapping of traded out vessels.
(j)
Placement in national defense reserve fleet of acquired vessels.
1161.
Reserve funds for construction or acquisition of vessels; taxation.
(a)
“New vessel” defined.
(b)
Establishment of construction reserve funds.
(c)
Recognition of gain for taxation where proceeds of sale or indemnity for loss deposited in fund.
(d)
Basis for determining gain or loss and for depreciation of new vessels.
(e)
Order, proportions, etc., of deposits and withdrawals.
(f)
Amounts in fund as accumulation of earnings or profits.
(g)
Benefits of section conditioned upon manner and time of expenditure of deposits.
(h)
Authorizations of extensions of time.
(i)
Taxation of deposits upon failure of conditions.
(j)
Assessment and collection of deficiency tax.
(k)
Taxable years governed by section.
(l)
Vessels deemed constructed or acquired by taxpayers owning stock in corporations constructing or acquiring vessels.
(m)
Definitions.
(n)
“Contract for the construction” and “construction contract” defined.
(o)
“Reconstruction and reconditioning” defined.

        

SUBCHAPTER VI—OPERATING-DIFFERENTIAL SUBSIDY

1171.
Subsidy authorized for operation of vessels in foreign trade or in off-season cruises.
(a)
Application for subsidy; conditions precedent to granting.
(b)
Statements as to financial interests to accompany application; penalty for false statements.
1172.
Determination of necessity of subsidy to meet competition.
1173.
Contracts for payment of subsidy.
(a)
Authorization of contracts.
(b)
Amount of subsidy.
(c)
“Collective bargaining costs”, “base period costs”, “base period”, and “subsidizable wage costs of United States officers and crews” defined; determination of collective bargaining costs and establishment of new base periods; wage change index.
(d)
Foreign wage computation; foreign manning.
(e)
Monthly payment of wage subsidy; procedures for calculation and payment of subsidy on certain expenses.
(f)
Monthly percentage payment of other than wage subsidy; security for refund of overpayments; payment of remainder after audit of voyage accounts.
1174.
Additional subsidy; when authorized.
1175.
Vessels excluded from subsidy.
(a)
Vessels engaged in coastwise or intercoastal trade; vessels on inland waterways.
(b)
Vessels more than 25 years old.
(c)
Vessels to be operated in an essential service served by citizens of United States.
1176.
Readjustments; change in service; withdrawal from service; payment of excess profits; wages, etc.; American materials.
1177.
Capital construction fund.
(a)
Agreement rules; persons eligible; replacement, additional, or reconstructed vessels for prescribed trade and fishery operations; amount of deposits, annual limitation; conditions and requirements for deposits and withdrawals.
(b)
Ceiling on deposits; lessees; “agreement vessel” defined.
(c)
Investment requirements; depositories; fiduciary requirements; interest-bearing securities; stock: percentage for domestic issues, listing and registration, prudent acquisitions, value and percentage equilibrium, and treatment of preferred issues.
(d)
Nontaxability of deposits; eligible deposits.
(e)
Accounts within fund: capital account, capital gain account, and ordinary income account; limitation on capital losses.
(f)
Purposes of qualified withdrawals; nonqualified withdrawal treatment for nonfulfillment of substantial obligations.
(g)
Tax treatment of qualified withdrawals; basis: reduction.
(h)
Tax treatment of nonqualified withdrawals; FIFO and LIFO bases; interest rate; amounts not withdrawn after 25 years; highest marginal rate of tax.
(i)
Corporate reorganizations and partnership changes.
(j)
Treatment of existing funds; relation of old to new fund.
(k)
Definitions.
(l)
Records; reports; rules and regulations; termination of agreement upon changes in regulations with substantial effect on rights or obligations.
(m)
Departmental reports and certification.
1177–1.
Small fishing vessel construction reserves.
1177a.
Deposits in special reserve fund; excusal; tax treatment.
1178.
Sale or assignment of contract; consent of Secretary; purchaser subject to terms of contract; rescinding contract on transfer without consent.
1179.
Withholding payment to defaulting contractor.
1180.
Vessels eligible to subsidy.
1181.
Transfer of vessels to foreign registry on default of United States.
(a)
Application; hearing; grant or denial.
(b)
Appeal from denial of application.
(c)
Effectiveness of transfer.
1183.
Off-season cruises by passenger vessels.
(a)
“Passenger vessel” defined.
(b)
Authorization for payment of subsidy.
(c)
Authorization for payment of subsidy to passenger vessels providing domestic service.
(d)
Conditions for cruises or domestic service while on voyages in an essential service in foreign commerce.
(e)
Application for approval of cruise; notice to other American flag operators.
1183a.
Off-season cruises additional to right of operator to make voyages on regular service, route, or line, including approved deviations.
1184.
Suspension of operating differential subsidy contracts by operator recipients.
1185.
Construction, reconstruction, or acquisition of vessels over five thousand deadweight tons in foreign shipyards; preconditions.

        

SUBCHAPTER VII—PRIVATE CHARTER OPERATION

1191.
Additional powers of Secretary for completion of program.
1192.
Construction or reconditioning of vessels by Secretary.
1193.
Competitive bidding.
(a)
Construction, reconstruction, or reconditioning of vessels.
(b)
Requirements.
(c)
Opening of bids.
1194.
Charter or sale of vessels acquired by Department of Transportation.
1195.
Employment of vessels on foreign trade routes; selection of routes; encouraging private operation by sale or charter; selling price.
1196.
Advertising for bids for charters; rejection of bids.
1197.
Awarding charter on bids.
(a)
Highest bid.
(b)
Rejection of highest bid.
(c)
Next highest bid; rejection of all bids and readvertisement.
1198.
Payment of subsidies to charterers.
1199.
Excess profit; payment to Secretary; formula for determining profit.
1200.
Undertaking required of charterer.
1201.
Terms and conditions of charters.
1202.
Insurance requirements; repairs; inspection by Secretary; termination of charter in national emergency.
1203.
Financial resources and other factors considered in awarding charters.
1204.
Construction and chartering of vessels for unsuccessful routes; purchase of vessel by charterer; purchase price; operation of vessel in foreign trade.
1205.
Experimental operation and testing of United States vessels; number; bareboat charters; review of charters and agency agreements; provisions applicable to charters and agreements.

        

SUBCHAPTER VIII—CONTRACT PROVISIONS

1211.
Provision for books and records; filing balance sheets; inspection and auditing by Secretary; rescission of contract on failure to comply with provisions.
1212.
Purchase or requisition of vessels by United States; amount of payment.
1213.
Contracts designed equitably for all ports; minimum allocation of funds; report to Congress; preference to citizens of United States; regional offices for Maritime Administration.

        

SUBCHAPTER VIII–A—OFFENSES AND PENALTIES

1222.
Operating competing foreign-flag vessel forbidden.
(a)
Operating-differential subsidy; competition with essential American-flag service.
(b)
Waiver; special circumstances.
(c)
Exceptions.
(d)
Statement to be filed with Secretary.
(e)
Report to Congress.
1223.
Forbidden practices relating to coastwise service, salaries, officers, and employees.
(a)
Foreign trade subsidy contractor engaging in coastwise or intercoastal trade.
(b)
Contractor in default paying more than specified salary.
(c)
Repealed.
(d)
Employing other persons or concerns as managing or operating agent.
(e)
Repealed.
(f)
Penalty.
1226.
Discrimination in respect to cargo.
1227.
Agreements with other carriers forbidden; withholding subsidies; actions by injured persons for damages.
1228.
Fines and penalties; conviction as rendering persons ineligible to receive benefits of law.

        

SUBCHAPTER IX—MISCELLANEOUS PROVISIONS

1241.
Transportation in American vessels of Government personnel and certain cargoes.
(a)
Requirement that officers and employees travel on American ships.
(b)
Cargoes procured, furnished or financed by United States; waiver in emergencies; exceptions; definition.
(c)
Motor vehicle owned by Government personnel.
1241–1.
Shipment of exports financed by Government in United States vessels.
1241a.
Vessel operations revolving fund; establishment; uses; limitation.
1241b.
Availability of vessel operations revolving fund; vessels involved in mortgage-foreclosure or forfeiture proceedings; redelivery and layup of chartered ships; custody and husbanding of Government-owned ships.
1241c.
Expenses for activation, repair and deactivation of merchant ships; receipts.
1241d.
Findings and declarations with respect to export transportation of agricultural commodities.
1241e.
Exemption of certain agricultural exports from requirements of cargo preference laws.
1241f.
Shipment requirements for certain exports sponsored by Department of Agriculture.
(a)
Minimum requirement respecting gross tonnage transported in United States-flag commercial vessels; implementation.
(b)
Covered export activity.
(c)
Terms and conditions.
(d)
“Export activity” defined.
(e)
Prevailing world market price.
1241g.
Minimum tonnage.
1241h.
Financing of shipment of agricultural commodities in United States-flag vessels.
(a)
Financing by Secretary of Transportation of increased ocean freight charges.
(b)
Reimbursement of Secretary of Agriculture and Commodity Credit Corporation; computations.
(c)
Issuance, etc., of obligations for financing.
(d)
Authorization of appropriations.
(e)
Notification of Congress respecting failure to obtain funds necessary for financing.
1241i.
Authorization of appropriations.
1241j.
Termination of sections 1241e through 1241o of this Appendix.
1241k.
National Advisory Commission on Agricultural Export Transportation Policy.
(a)
Establishment.
(b)
Membership; composition, appointment, etc.
(c)
Chairman; vacancy.
1241l.
Duties of Commission.
(a)
Study and review of ocean transportation of agricultural exports subject to cargo preference laws; recommendations, scope, etc.
(b)
Reporting requirements; termination of Commission.
(c)
Contents of reports.
1241m.
Information and assistance to be furnished to Commission.
1241n.
Compensation and travel and subsistence expenses of Commission members.
1241o.
Definition of United States-flag vessel eligible to carry cargoes under sections 1241f through 1241h of this Appendix.
1241p.
Effect on other laws.
1241q.
Exemption of American Great Lakes vessels from restriction on carriage of preference cargoes.
(a)
Exemption from restriction.
(b)
Restriction described.
(c)
Subsequent application of restriction.
1241r.
Designation of American Great Lakes vessels.
(a)
In general.
(b)
Construction and purchase agreement.
(c)
Certain foreign registry and sale not prohibited.
(d)
Issuance of regulations.
1241s.
Restrictions on operations of American Great Lakes vessels.
(a)
In general.
(b)
Off-season carriage exception.
1241t.
Revocation and termination of designation.
(a)
Revocation.
(b)
Civil penalty.
(c)
Termination of designation.
1241u.
Study and report.
(a)
Study.
(b)
Report.
1241v.
Definitions.
1242.
Requisition or purchase of vessels in time of emergency.
(a)
Compensation; restoration; consequential damages.
(b)
Determination of value of vessel.
(c)
Charter of vessels; compensation; reimbursement for loss or damage.
(d)
Determination of amount of compensation.
(e)
Use of vessels by Secretary; transfer to other departments or agencies; reimbursement of Secretary.
1242a.
Maintenance of and adjustment of obligations with respect to essential vessels affected by Neutrality Act.
(a)
“Essential vessel” defined.
(b)
Adjustment of obligations and arrangements for maintenance of essential vessels.
(c)
Provisions included within adjustments and arrangements.
(d)
Readjustment or modification of adjustments and arrangements.
(e)
Expenses incurred in adjustments and arrangements.
1244.
Definitions.
1245.
Separability; short title of chapter.
1247.
Appointment of Secretary as trustee or receiver; operation of vessels under court orders; payment of operating costs; claims against corporation.
1248.
Enrollment in a sealift readiness program.

        

SUBCHAPTER XI—FEDERAL SHIP MORTGAGE INSURANCE

1271.
Definitions.
1272.
Federal Ship Financing Fund.
1273.
Authorization of Secretary to guarantee obligations.
(a)
Principal and interest.
(b)
Security interest.
(c)
Amount of guarantee; percentage limitation; determination of actual cost of vessel.
(d)
Pledge of United States.
(e)
Proof of obligations.
(f)
Limitation on outstanding amount.
(g)
Restrictions on commitments to guarantee obligations on eligible export vessels.
1274.
Eligibility for guarantee.
(a)
Purpose of obligations.
(b)
Contents of obligations.
(c)
Security.
(d)
Restrictions.
(e)
Guarantee fees.
(f)
Investigation of applications.
(g)
Disposition of moneys.
(h)
Additional requirements.
(i)
Limitation on authority to establish uniform percentage limitations.
(j)
Guarantees for eligible export vessels.
1274a.
Authorization of Secretary to guarantee obligations arising from statutorily mandated change in standards for operation of vessels.
(a)
Purpose of obligations; principal and interest.
(b)
Limitations on length and amount of guaranteed obligations; useful life of vessel.
(c)
Security against default; fees; Vessel Replacement Guarantee Fund.
(d)
Additional requirements.
1275.
Defaults.
(a)
Rights of obligee.
(b)
Notice of default.
(c)
Secretary to complete, sell or operate property.
(d)
Cash payments; issuance of notes or obligations.
(e)
Actions against obligor.
1279a.
Escrow fund.
(a)
Creation.
(b)
Disbursement prior to termination of escrow agreement.
(c)
Disbursement upon termination of escrow agreement.
(d)
Investment of fund.
(e)
Payment of income.
(f)
Terms of escrow agreement.
1279c.
Ocean thermal energy conversion demonstration facilities and plantships.
(a)
Financing of construction, reconstruction, or reconditioning.
(b)
Certification of reasonableness of risk.
(c)
OTEC Demonstration Fund.
(d)
Notes and obligations.
(e)
Taxability of interest.
1279d.
Loan guarantees for eligible vessels.
(a)
Authority to guarantee obligations for eligible export vessels.
(b)
Interagency council.
1279e.
Loan guarantees for shipyard modernization and improvement.
(a)
General authority.
(b)
Applicable laws, requirements, regulations, and procedures.
(c)
Transfer of funds.
(d)
Definitions.
1280.
Advances to fund.
1280a.
Eligible shipyards.

        

SUBCHAPTER XII—WAR RISK INSURANCE

1281.
Definitions.
1282.
Authority to provide insurance; consideration of risk.
(a)
Authorization, approval, and consultation; criteria.
(b)
Consideration of risk.
(c)
Condition of availability in time of war or national emergency.
1283.
Persons, property, and interests insurable.
1284.
Risks other than war risks.
1285.
Insurance of property of Government departments and agencies.
1286.
Liability insurance for persons performing services or providing facilities for vessels.
1287.
Reinsurance; rates; allowances to insurance carriers.
1288.
Insurance fund; investments; appropriations.
1288a.
Transfer of funds from Vessel Operations Revolving Fund.
1289.
Administrative provisions.
(a)
Issuance of policies, rules, and regulations; settlement of claims; valuation; rejection and review of valuation.
(b)
Forms and policies; rates; fees.
(c)
Commercial practice controlling; limitation on fees.
(d)
Underwriting agents.
(e)
Employment of marine insurance experts.
(f)
Utilization of services of other Government agencies.
1290.
Seamen's rights unaffected.
1291.
Reports to Congress.
1292.
Actions on claims for losses; jurisdiction of courts; limitation of actions.
1293.
Additional insurance with other underwriters.
1294.
Expiration of authority to provide insurance.

        

SUBCHAPTER XIII—MARITIME EDUCATION AND TRAINING

1295.
Congressional declaration of policy.
1295a.
Definitions.
1295b.
Maintenance of Academy.
(a)
Duty of Secretary.
(b)
Nomination and appointment of cadets; designation and licensing of individuals from Trust Territory of Pacific Islands, Western Hemisphere nations and nations other than United States.
(c)
Appointment of cadet as midshipman in United States Naval Reserve.
(d)
Uniforms, textbooks, and transportation allowances.
(e)
Commitment agreements.
(f)
Places of training.
(g)
Bachelor of science degrees awarded.
(h)
Board of Visitors.
(i)
Advisory Board.
1295c.
State maritime academies.
(a)
Cooperation and assistance.
(b)
Regional maritime academies.
(c)
Training vessels.
(d)
Annual payments.
(e)
Detailing of personnel.
(f)
Conditions to receiving payments or use of vessels.
(g)
Student incentive payment agreements.
(h)
Appointment of cadet as midshipman in United States Naval Reserve.
1295c–1.
Plan for sharing training vessels.
1295d.
Additional training.
(a)
In general.
(b)
Equipment or supplies required for training.
(c)
Oil pollution prevention, response, and clean-up program.
1295e.
United States Maritime Service.
(a)
Establishment and maintenance.
(b)
Enrollment; compensation; course of study and periods of training; uniforms.
(c)
Ranks, grades, and ratings same as for United States Coast Guard.
1295f.
Civilian nautical school.
(a)
“Civilian nautical school” defined.
(b)
Examination and inspection of school; rating and certification.
(c)
Repealed.
(d)
Fines and penalties.
1295g.
Powers and duties of Secretary.
(a)
Rules and regulations.
(b)
Excess vessels and equipment.
(c)
Securing of information, facilities, or equipment; detailing of personnel.
(d)
Employment of personnel.

        

Cross References

Emergency foreign vessel acquisition, see sections 196 to 198 of Title 50, War and National Defense.

Chapter Referred to in Other Sections

This chapter is referred to in section 865a of this Appendix; title 40 sections 270f, 484; title 42 sections 9101, 9141; title 50 App. section 1744.

SUBCHAPTER I—DECLARATION OF POLICY

Subchapter Referred to in Other Sections

This subchapter is referred to in section 1122 of this Appendix.

§1101. Fostering development and maintenance of merchant marine

It is necessary for the national defense and development of its foreign and domestic commerce that the United States shall have a merchant marine (a) sufficient to carry its domestic water-borne commerce and a substantial portion of the water-borne export and import foreign commerce of the United States and to provide shipping service essential for maintaining the flow of such domestic and foreign waterborne commerce at all times, (b) capable of serving as a naval and military auxiliary in time of war or national emergency, (c) owned and operated under the United States flag by citizens of the United States, insofar as may be practicable, (d) 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 (e) supplemented by efficient facilities for shipbuilding and ship repair. It is declared to be the policy of the United States to foster the development and encourage the maintenance of such a merchant marine.

(June 29, 1936, ch. 858, title I, §101, 49 Stat. 1985; Oct. 21, 1970, Pub. L. 91–469, §1, 84 Stat. 1018.)

Amendments

1970—Pub. L. 91–469 struck out “on all routes” after “shipping service” in cl. (a) and inserted cl. (e).

Section Referred to in Other Sections

This section is referred to in sections 1119, 1120, 1161, 1191, 1222 of this Appendix.

SUBCHAPTER II—CREATION AND FUNCTIONS OF MARITIME AGENCIES

§1111. Powers and duties of agencies

(a) Repealed. Pub. L. 97–31, §12(58)(A), Aug. 6, 1981, 95 Stat. 158

(b) Repealed. Pub. L. 101–225, title III, §307(7), Dec. 12, 1989, 103 Stat. 1925

(c) Records of meetings; seal; rules and regulations

The Commission shall, through its secretary, keep a true record of all its meetings and the yea-and-nay votes taken therein, on every action, order, contract, or financial transaction approved or disapproved by the Commission. It shall have an official seal which shall be judicially noticed, and shall adopt rules and regulations in regard to its procedure and the conduct of its business.

(d) Expenditures

The Commission and the Secretary of Transportation may make such expenditures as are necessary in the performance of their functions from funds made available to them by this chapter or appropriated after June 29, 1936, which further appropriations are authorized.

(e) Officers and employees

The Commission and the Secretary of Transportation may appoint and prescribe the duties and fix the salaries of a secretary, a director for each of not to exceed five divisions, a general counsel, a clerk to each member of the Commission and not more than three assistants, a clerk to the general counsel, not more than a total of twenty naval architects or marine engineers, twenty special experts, twenty-two examiners, twelve attorneys, and two inspectors for each vessel at each shipyard at which vessels are being constructed by it or under its supervision. The Commission and the Secretary of Transportation may, subject to the provisions of the civil-service laws and chapter 51 and subchapter III of chapter 53 of title 5, appoint such other officers, engineers, inspectors, attorneys, examiners, and other employees as are necessary in the execution of their functions.

(f) Traveling and subsistence expenses; pay for military officer on assignment

Each member, any employee of the Commission or the Secretary of Transportation, and any person detailed to it or the Secretary of Transportation from any other agency of the Government shall receive necessary traveling and subsistence expenses, or per diem allowance in lieu thereof, within the limitations prescribed by law, while away from his official station upon official business of the Commission or the Secretary of Transportation. Whenever any officer (not exceeding five in number at any time) of the Army, Navy, Marine Corps, or Coast Guard is detailed to the Commission or the Secretary of Transportation, he shall receive from the Commission or the Secretary of Transportation, for the period during which he is so detailed, such compensation as added to his pay and allowances as an officer in such service will make his aggregate compensation equal to the pay and allowances he would receive if he were the incumbent of an office or position in such service (or in the corresponding executive department), which, in the opinion of the Commission or the Secretary of Transportation, involves the performance of work similar in importance, difficulty, and responsibility to that performed by him while detailed to the Commission or the Secretary of Transportation. Expenditures by the Commission or the Secretary of Transportation shall be allowed and paid on the presentation of itemized vouchers therefor approved by the Commission or the Secretary of Transportation or a designated employee thereof.

(June 29, 1936, ch. 858, title II, §201, 49 Stat. 1985; Aug. 4, 1939, ch. 417, §§3, 4, 53 Stat. 1182; Oct. 28, 1949, ch. 782, title XI, §1106(a), 63 Stat. 972; July 7, 1958, Pub. L. 85–507, §21(b)(4), 72 Stat. 337; Oct. 21, 1970, Pub. L. 91–469, §36, 84 Stat. 1036; Aug. 6, 1981, Pub. L. 97–31, §12(58), 95 Stat. 158; Dec. 12, 1989, Pub. L. 101–225, title III, §307(7), 103 Stat. 1925.)

References in Text

The civil service laws, referred to in subsec. (e), are set out in Title 5, Government Organization and Employees. See, particularly, section 3301 et seq. of Title 5.

Codification

Provisions of the first sentence of subsec. (e) that authorized the appointment and fixing of the salaries of a secretary, etc., “without regard to the civil-service laws or the Classification Act of 1923, as amended”, and provisions that prohibited such employees from receiving an annual salary at a rate in excess of that provided under the Classification Act of 1923, as amended, were omitted as obsolete and superseded.

Such appointments are now subject to the civil service laws unless specifically excepted by such laws or by laws enacted subsequent to Executive Order 8743, Apr. 23, 1941, issued by the President pursuant to the act of Nov. 26, 1940, ch. 919, title I, §1, 54 Stat. 1211, which covered most excepted positions into the classified (competitive) civil service. The Order is set out as a note under section 3301 of Title 5, Government Organization and Employees.

As to the salaries of such personnel, sections 1202 and 1204 of the Classification Act of 1949, 63 Stat. 972, 973, repealed the Classification Act of 1923 and all other laws or parts of laws inconsistent with the 1949 Act. The Classification Act of 1949 was repealed by Pub. L. 89–554, Sept. 6, 1966, §8(a), 80 Stat. 632, and reenacted as chapter 51 and subchapter III of chapter 53 of Title 5. Section 5102 of Title 5 contains the applicability provisions of the 1949 Act, and section 5103 of Title 5 authorizes the Office of Personnel Management to determine the applicability to specific positions and employees.

In the last sentence of subsec. (e), “chapter 51 and subchapter III of chapter 53 of title 5” substituted for “the Classification Act of 1949, as amended” on authority of Pub. L. 89–554, §7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5.

Amendments

1989—Subsec. (b). Pub. L. 101–225 struck out subsec. (b) which read as follows: “No person shall hold office as a member of the Commission who, within three years prior to his appointment, shall have been employed by, or have had any pecuniary interest, in any carrier by water or substantial pecuniary interest in any other person who derives a substantial portion of his revenues from any business associated with ships or shipping. Each member shall devote his full time to the duties of his office. It shall be unlawful for any member, officer, or employee of the Federal Maritime Commission to be in the employ of any other person, firm, or corporation, or to have any pecuniary interest in, or hold any official relationship with, any carrier by water, shipbuilder, contractor, or other person, firm, association, or corporation with whom the Federal Maritime Commission may have business relations.”

Subsec. (g). Pub. L. 101–225 struck out subsec. (g) which provided that this section take effect June 29, 1936.

1981—Subsec. (a). Pub. L. 97–31, §12(58)(A), struck out subsec. (a) which related to establishment, etc., of the United States Maritime Commission. For prior transfers of functions, see Transfer of Functions note below.

Subsec. (d). Pub. L. 97–31, §12(58)(B), substituted “their” for “its” and “them” for “it” and inserted reference to Secretary of Transportation.

Subsec. (e). Pub. L. 97–31, §12(58)(C), substituted “their” for “it”, inserted reference to Secretary of Transportation, and struck out proviso which related to the transfer of employees from the United States Shipping Board Bureau or United States Shipping Board Merchant Fleet Corporation to the United States Maritime Commission and to the Acquisition of United States Civil Service status.

Subsec. (f). Pub. L. 97–31, §12(58)(D), inserted references to Secretary of Transportation.

1970—Subsec. (b). Pub. L. 91–469 substituted in last sentence “Federal Maritime Commission” for “Commission” in two places.

1958—Subsec. (e). Pub. L. 85–507 struck out provisions which authorized detail of certain personnel for training at institutions for scientific education and research.

1949—Subsec. (e). Act Oct. 28, 1949, substituted “Classification Act of 1949” for “Classification Act of 1923, as amended,”.

1939—Subsec. (e). Act Aug. 4, 1939, §3, authorized the appointment of a clerk to the general counsel, increased the number of naval architects and special experts from 12 to 20 each, and the number of examiners from 12 to 22, and permitted not more than 5 members to be detailed annually for engineering, technical, or other scientific education and training.

Subsec. (f). Act Aug. 4, 1939, §4, provided for the payment of compensation to officers of the Army, Navy, Marine Corps, or Coast Guard.

Effective Date of 1958 Amendment

For effective date of amendment by Pub. L. 85–507, see section 21(a) of Pub. L. 85–507.

Repeals

Act Oct. 28, 1949, ch. 782, cited as a credit to this section, was repealed (subject to a savings clause) by Pub. L. 89–554, Sept. 6, 1966, §8, 80 Stat. 632, 655.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out below.

Coast Guard transferred to Department of Transportation, and functions, powers, and duties relating to Coast Guard of Secretary of the Treasury and of other officers and offices of Department of the Treasury transferred to Secretary of Transportation by Pub. L. 89–670, §6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. L. 89–670, however, provided that notwithstanding such transfer of functions, Coast Guard shall operate as part of Navy in time of war or when President directs as provided in section 3 of Title 14, Coast Guard. See section 108 of Title 49, Transportation.

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Functions of Coast Guard, and Commandant of Coast Guard, excepted from transfer when Coast Guard is operating as part of Navy under sections 1 and 3 of Title 14.

Federal Maritime Commission; Term of Office; Vacancies; Continuity of Service

Pub. L. 89–56, June 30, 1965, 79 Stat. 195, provided; “That Commissioners of the Federal Maritime Commission, provided for by section 102 of Reorganization Plan Numbered 7 of 1961 (75 Stat. 849), shall hereafter be appointed for a term of five years except that one of the two terms which commence July 1, 1965, shall initially be for four years and thereafter shall be for five years: Provided, however, That a person chosen to fill a vacancy shall be appointed only for the unexpired term of the Commissioner whom he succeeds: Provided, further, That upon the expiration of his term of office a Commissioner shall continue to serve until his successor shall have been appointed and shall have qualified.”

Compensation of Federal Maritime Commissioners and Maritime Administrator

Annual basic compensation of Chairman of Commission, members of Commission, and Administrator, Maritime Administration, see sections 5314 and 5315 of Title 5, Government Organization and Employees.

Ex. Ord. No. 11156. Maritime Advisory Committee

Ex. Ord. No. 11156, eff. June 17, 1964, 29 F.R. 7855, which established the Maritime Advisory Committee, was revoked by Ex. Ord. No. 11427, eff. Sept. 4, 1968, 33 F.R. 12617.

REORGANIZATION PLAN NO. 7 OF 1961

Eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840, as amended Pub. L. 88–426, title III, §305(19), Aug. 14, 1964, 78 Stat. 425; Pub. L. 91–469, §38, Oct. 21, 1970, 84 Stat. 1036

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, June 12, 1961, pursuant to the provisions of the Reorganization Act of 1949, 63 Stat. 203, as amended [see 5 U.S.C. 901 et seq.].

MARITIME FUNCTIONS

Part I. Federal Maritime Commission

Section 101. Creation of Federal Maritime Commission

(a) There is hereby established a Federal Maritime Commission, hereinafter referred to as the Commission.

(b) The Commission shall not be a part of any executive department or under the authority of the head of any executive department.

Sec. 102. Composition of the Commission

(a) The Commission shall be composed of five Commissioners, who shall be appointed by the President by and with the advice and consent of the Senate. Each Commissioner shall be removable by the President for inefficiency, neglect of duty, or malfeasance in office.

(b) The President shall from time to time designate one of the Commissioners to be the Chairman of the Commission.

(c) Of the first five Commissioners appointed hereunder, one shall be appointed for a term expiring on June 30, 1962, one for a term expiring on June 30, 1963, one for a term expiring on June 30, 1964, and two for terms expiring on June 30, 1965. Their successors shall be appointed for terms of four years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the Commissioner whom he succeeds. Not more than three of the Commissioners shall be appointed from the same political party. A vacancy in the office of any such Commissioner shall be filled in the same manner as the original appointment.

(d) A vacancy in the Commission, so long as there shall be three Commissioners in office, shall not impair the power of the Commission to execute its functions. Any three of the Commissioners in office shall constitute a quorum for the transaction of the business of the Commission and the affirmative votes of any three Commissioners shall be sufficient for the disposition of any matter which may come before the Commission. [As amended Pub. L. 88–426, title III, §305(19)(A), Aug. 14, 1964, 78 Stat. 425.]

[Commissioners of the Federal Maritime Commission appointed to five year terms, appointed to vacancies only for unexpired term, and to serve until appointment and qualification of successor, see Pub. L. 89–56, set out as a Federal Maritime Commission; Term of Office; Vacancies; Continuity of Service note above.]

Sec. 103. Transfer of Functions to Commission

The following functions, which are now vested in the Federal Maritime Board under the provisions of Reorganization Plan No. 21 of 1950 (64 Stat. 1273), are hereby transferred from that Board to the Commission:

(a) All functions under the provisions of sections 14–20, inclusive, and sections 22–33, inclusive, of the Shipping Act, 1916, as amended ([former] 46 U.S.C. 812–819 and 821–832), including such functions with respect to the regulation and control of rates, services, practices, and agreements of common carriers by water and of other persons.

(b) All functions with respect to the regulation and control of rates, fares, charges, classifications, tariffs, regulations, and practices of common carriers by water under the provisions of the Intercoastal Shipping Act, 1933, as amended ([former] 46 U.S.C. 843–848).

(c) The functions with respect to the making of rules and regulations affecting shipping in the foreign trade to adjust or meet conditions unfavorable to such shipping, and with respect to the approval, suspension, modification, or annulment of rules or regulations of other Federal agencies affecting shipping in the foreign trade, under the provisions of section 19 of the Merchant Marine Act, 1920, as amended (46 U.S.C. 876), exclusive of subsection (1)(a) thereof.

(d) The functions with respect to investigating discriminatory rates, charges, classifications, and practices in the foreign trade, and with respect to recommending legislation to correct such discrimination, under the provisions of section 212(e) of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1122(f)).

(e) To the extent that they relate to functions transferred to the Commission by the foregoing provisions of this section:

(1) The functions with respect to requiring the filing of reports, accounts, records, rates, charges, and memoranda, under the provisions of section 21 of the Shipping Act, 1916, as amended ([former] 46 U.S.C. 820).

(2) The functions with respect to adopting rules and regulations, making reports and recommendations to Congress, subpoenaing witnesses, administering oaths, taking evidence, and requiring the production of books, papers, and documents, under the provisions of sections 204, 208, and 214 of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1114, 1118, and 1124).

Sec. 104. Transfer of Functions to Chairman

There are hereby transferred to the Chairman of the Commission:

(a) The functions of the Chairman of the Federal Maritime Board, including his functions derived from the provisions of Reorganization Plan No. 6 of 1949, to the extent that they relate to the functions transferred to the Commission by the provisions of section 103 of this reorganization plan.

(b) The functions of the Secretary of Commerce to the extent that they are necessary for, or incidental to, the administration of the functions transferred to the Commission by the provisions of section 103 of this reorganization plan.

Sec. 105. Authority To Delegate

(a) The Commission shall have the authority to delegate, by published order or rule, any of its functions to a division of the Commission, an individual Commissioner, a hearing examiner, or an employee or employee board, including functions with respect to hearing, determining, ordering, certifying, reporting or otherwise acting as to any work, business, or matter: Provided, however, That nothing herein contained shall be deemed to supersede the provisions of section 7(a) of the Administrative Procedure Act (60 Stat. 241), as amended [see 5 U.S.C. 556].

(b) With respect to the delegation of any of its functions, as provided in subsection (a) of this section, the Commission shall retain a discretionary right to review the action of any such division of the Commission, individual Commissioner, hearing examiner, employee or employee board, upon its own initiative or upon petition of a party to or an intervenor in such action, within such time and in such manner as the Commission shall by rule prescribe: Provided, however, That the vote of a majority of the Commission less one member thereof shall be sufficient to bring any such action before the Commission for review.

(c) Should the right to exercise such discretionary review be declined, or should no such review be sought within the time stated in the rules promulgated by the Commission, then the action of any such division of the Commission, individual Commissioner, hearing examiner, employee or employee board, shall, for all purposes, including appeal or review thereof, be deemed to be the action of the Commission.

(d) There are hereby transferred to the Chairman of the Commission the functions with respect to the assignment of Commission personnel, including Commissioners, to perform such functions as may have been delegated by the Commission to Commission personnel, including Commissioners, pursuant to the foregoing subsections of this section.

Part II. Department of Commerce

Section 201. Maritime Administrator

There shall be at the head of the Maritime Administration (established by the provisions of Part II of Reorganization Plan No. 21 of 1950) a Maritime Administrator, hereinafter referred to as the Administrator. The Assistant Secretary of Commerce for Maritime Affairs shall, ex officio, be the Administrator. The Administrator shall perform such duties as the Secretary of Commerce shall prescribe. [As amended Pub. L. 88–426, title III, §305(19)(B), Aug. 14, 1964, 78 Stat. 425; Pub. L. 91–469, §38(a), Oct. 21, 1970, 84 Stat. 1036.]

Sec. 202. Functions of Secretary of Commerce

(a) Except to the extent inconsistent with the provisions of sections 101(b) or 104(b) of this reorganization plan, there shall remain vested in the Secretary of Commerce all the functions conferred upon the Secretary by the provisions of Reorganization Plan No. 21 of 1950.

(b) There are hereby transferred to the Secretary of Commerce:

(1) All functions of the Federal Maritime Board under the provisions of section 105(1) to 105(3), inclusive, of Reorganization Plan No. 21 of 1950.

(2) Except to the extent transferred to the Commission by the provisions of section 103(e) of this reorganization plan, the functions described in the said section 103(e).

(3) Any other functions of the Federal Maritime Board not otherwise transferred by the provisions of part I of this reorganization plan.

(4) Except to the extent transferred to the Chairman of the Commission by the provisions of Part I of this reorganization plan, the functions of the Chairman of the Federal Maritime Board.

Sec. 203. Delegation of Functions

The provisions of sections 2 and 4 of Reorganization Plan No. 5 of 1950 (64 Stat. 1263) shall be applicable to all functions transferred to the Secretary of Commerce by, or remaining vested in him under, the provisions of this reorganization plan.

Part III. General Provisions

Section 301. Conflict of Interest

The provisions of the last sentence of section 201(b) of the Merchant Marine Act, 1936, as affected by the provisions of Reorganization Plan No. 21 of 1950 (46 U.S.C. §1111(b)) (prohibiting the members of the Federal Maritime Board and all officers and employees of that Board or of the Maritime Administration from being in the employ of any other person, firm, or corporation, or from having any pecuniary interest in or holding any official relationship with any carrier by water, shipbuilder, contractor, or other person, firm, association, or corporation with whom the Federal Maritime Board or the Maritime Administration may have business relations) shall hereafter be applicable to the Commissioners composing the Commission and all officers and employees of the Commission. [As amended Pub. L. 91–469, §38(b), Oct. 21, 1970, 84 Stat. 1036.]

Sec. 302. Interim Appointments

Pending the initial appointment hereunder of the Commissioners composing the Commission and of the Maritime Administrator, but not for a period exceeding 90 days, such officers of the executive branch of the Government (including any person who is a member of the Federal Maritime Board or Deputy Maritime Administrator immediately prior to the taking effect of the provisions of this reorganization plan) as the President shall designate under the provisions of this section shall be Acting Commissioners of the Federal Maritime Commission or Acting Maritime Administrator. The President may designate one of such Acting Commissioners as Acting Chairman of the Commission. Any person who is not while serving under an interim appointment pursuant to the foregoing provisions of this section receiving compensation attached to another Federal office shall receive the compensation herein provided for the office wherein he serves in an interim capacity.

Sec. 303. Incidental Transfers

(a) So much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with the functions transferred to the Commission or to the Chairman of the Commission by the provisions of Part I of this reorganization plan as the Director of the Bureau of the Budget shall determine shall be transferred to the Commission at such time or times as the Director shall direct.

(b) Such further measures and dispositions as the Director of the Bureau of the Budget shall deem to be necessary in order to effectuate the transfers provided for in subsection (a) of this section shall be carried out in such manner as he shall direct and by such agencies as he shall designate.

(c) Subject to the foregoing provisions of this section, the Secretary of Commerce may transfer within the Department of Commerce personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with functions which were transferred to the Department of Commerce (including the Federal Maritime Board and the Chairman thereof) by the provisions of Reorganization Plan No. 21 of 1950.

Sec. 304. Abolition of Federal Maritime Board

The Federal Maritime Board, including the offices of the members of the Board, is hereby abolished, and the Secretary of Commerce shall provide for the termination of any outstanding affairs of the said Board not otherwise provided for in this reorganization plan.

Sec. 305. Status of Prior Plan

The following provisions of Reorganization Plan No. 21 of 1950 are hereby superseded:

(1) Part I.

(2) Section 202.

(3) Sections 302 to 307, inclusive.

Message of the President

To the Congress of the United States:

I transmit herewith Reorganization Plan No. 7 of 1961, prepared in accordance with the Reorganization Act of 1949, as amended, and providing for the reorganization of maritime functions.

The basic objective of the plan is to strengthen and revitalize the administration of our Federal programs concerned with the promotion and development of the U.S. merchant marine by concentrating responsibility in separate agencies for the performance of regulatory and promotional functions. The plan provides, therefore, for the creation of a separate Federal Maritime Commission, composed of five Commissioners, which would be charged with the regulatory functions of the present Federal Maritime Board. There would be transferred from the Federal Maritime Board to the Secretary of Commerce the award of subsidies and related promotional functions. The Secretary of Commerce would retain the functions transferred to him by Reorganization Plan No. 21 of 1950 which reorganized the U.S. Maritime Commission into a Federal Maritime Board and a Maritime Administration in the Department of Commerce. The plan retains the present Maritime Administration, provides for an Administrator as head thereof, retains a Deputy Maritime Administrator, and effects no change in the Office of the Under Secretary of Commerce for Transportation. The Federal Maritime Board is abolished.

Existing organizational arrangements have not proved to be satisfactory. The development and maintenance of a sound maritime industry require that the Federal Government carry out its dual responsibilities for regulation and promotion with equal vigor and effectiveness. Intermingling of regulatory and promotional functions has tended in this instance to dilute responsibility and has led to serious inadequacies, particularly in the administration of regulatory functions. Recent findings by committees of the Congress disclose serious violations of maritime laws and point to the urgent need for a reorganization to vest in completely separate agencies a responsibility for (1) regulatory functions and (2) promotional and operating functions.

The plan would provide the most appropriate organizational framework for each of the functions concerned. Regulation would be made the exclusive responsibility of a separate commission organized along the general lines of other regulatory agencies. On the other hand, nonregulatory functions, including the determination and award of subsidies and other promotional and operating activities, would be concentrated in the head of the Department of Commerce. The Secretary of Commerce is best qualified to coordinate these activities with other transportation and related economic programs.

The vesting of all subsidy functions in the Secretary of Commerce will make it possible for the Congress and the President to hold a single official responsible and accountable for the effective conduct of all aspects of this program, including the size and character of the fleet under the U.S. flag, the need for Government assistance, and requirements for appropriations to support subsidy programs. Furthermore, the placing of these functions in the Secretary of Commerce will assure essential supervision and review of subsidy awards.

The taking effect of the reorganizations included in the accompanying reorganization plan will result in a modest increase in expenditures. The improved organizational alinements provided by the plan will, however, make possible a more effective and expeditious administration of the statutory objectives to foster and promote a U.S. merchant marine capable of meeting the Nation's needs in peace and war. Failure to meet these objectives would be far more costly than the anticipated increase in expenditures under the plan.

After investigation, I have found and hereby declare that each reorganization included in Reorganization Plan No. 7 of 1961 is necessary to accomplish one or more of the purposes set forth in section 2(a) of the Reorganization Act of 1949, as amended.

I have also found and hereby declare that it is necessary to include in the accompanying reorganization plan, by reason of reorganizations made thereby, provisions for the appointment and compensation of new officers specified in sections 102 and 201 of the plan. The rates of compensation fixed for these officers are, respectively, those which I have found to prevail in respect of comparable officers in the executive branch of the Government.

I recommend that the Congress allow the reorganization plan to become effective.

John F. Kennedy.      

The White House, June 12, 1961.

REORGANIZATION PLAN NO. 21 OF 1950

Eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1273, as amended Reorg. Plan No. 7 of 1961, §305, eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840; Oct. 21, 1970, Pub. L. 91–469, §37, 84 Stat. 1036

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, March 13, 1950, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949 [see 5 U.S.C. 901 et seq.].

PART I. FEDERAL MARITIME BOARD

Sections 1001–106. [Superseded. Reorg. Plan No. 7 of 1961, §305, eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840. Section 101 established the Federal Maritime Board. Section 102 provided for the composition of the Federal Maritime Board. Section 103 transferred certain functions from the Chairman of the United States Maritime Commission to the Chairman of the Federal Maritime Board. Section 104 transferred regulatory functions of the United States Maritime Commission to the Federal Maritime Board. Section 105 transferred subsidy award and other functions of the United States Maritime Commission to the Federal Maritime Board. Section 106 provided that the Board was to be an agency within the Department of Commerce, but would be independent of the Secretary of Commerce with respect to functions transferred to it under section 104.]

PART II. MARITIME ADMINISTRATION

Sec. 201. Creation of Maritime Administration

There is hereby established in the Department of Commerce a Maritime Administration.

Sec. 202 [Superseded. Reorg. Plan No. 7 of 1961, §305, eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840. Section provided for a Maritime Administrator to be at the head of the Maritime Administration, and that the Chairman of the Federal Maritime Board would be such Administrator and would perform duties prescribed by the Secretary of Commerce.]

Sec. 203. Deputy Maritime Administrator

There shall be in the Maritime Administration a Deputy Maritime Administrator, who shall be appointed by the Secretary of Commerce, after consultation with the Administrator, under the classified civil service, and who shall perform such duties as the Administrator shall prescribe. The Deputy Maritime Administrator shall be Acting Maritime Administrator during the absence or disability of the Administrator and, unless the Secretary of Commerce shall designate another person, during a vacancy in the office of Administrator: Provided, That such Deputy Administrator shall at no time sit as a member or acting member of the Federal Maritime Board.

Sec. 204. Transfer of Functions

Except as otherwise provided in part I of this reorganization plan, all functions of the United States Maritime Commission and of the Chairman of said Commission are hereby transferred to the Secretary of Commerce. The Secretary of Commerce may from time to time make such provisions as he shall deem appropriate authorizing the performance by the Maritime Administrator of any function transferred to such Secretary by the provisions of this reorganization plan.

PART III. GENERAL PROVISIONS

Sec. 301. Under Secretary of Commerce for Transportation

There shall be in the Department of Commerce an additional office of Under Secretary with the title “Under Secretary of Commerce for Transportation.” The Under Secretary of Commerce for Transportation shall be appointed by the President, by and with the advice and consent of the Senate, shall receive compensation at the rate prescribed by law for Under Secretaries of Executive departments, and shall perform such duties as the Secretary of Commerce shall prescribe.

Secs. 302–307. [Superseded. Reorg. Plan No. 7 of 1961, §305, eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840. Section 302 provided that person who was both Administrator and Chairman was to make joint use of the personnel under his supervision. Section 303 made conflict of interest provisions of the Merchant Marine Act, 1936, applicable to members of the Federal Maritime Board and officers and employees of the Board or of the Maritime Administration. Section 304 allowed the President to make interim appointments to the Federal Maritime Board from officers of the Executive Branch. Section 305 transferred to the Department of Commerce all property, personnel, records, and funds of the United States Maritime Commission. Section 306 abolished the United States Maritime Commission. Section 307 provided that the functions transferred by this reorganization plan would not be subject to Reorg. Plan No. 5 of 1950.]

Message of the President

To the Congress of the United States:

I transmit herewith Reorganization Plan No. 21 of 1950, prepared in accordance with the provisions of the Reorganization Act of 1949. This plan effects a basic reorganization of the functions of the United States Maritime Commission along the lines recommended by the Commission on Organization of the Executive Branch of the Government.

Within the last 3 years three different bodies have studied the administration of the Maritime Commission. All have concluded that the operating deficiencies of the agency arise from inappropriate and unsound organization and that a fundamental reorganization is essential. The first of these bodies, the President's Advisory Committee on the Merchant Marine, in 1947, stated:

It appears to the Committee that the organization structure of the Maritime Commission as set up in the Merchant Marine Act of 1936 is wholly inadequate for the efficient conduct of the multitude of diverse activities for which the Maritime Commission is now responsible. The deficiencies of the statutory organization for administrative action are regarded by the Committee to be the most serious obstacle standing in the way of the development of the Merchant Marine of this country.

Similarly, the survey of the Maritime Commission in 1948 for the Senate Committee on Expenditures in the Executive Departments concluded that—

The fundamental weakness of the Maritime Commission, as it is now constituted, lies in its proscribed organization.

On the basis of investigations of the Maritime Commission by two of its task forces, the Commission on Organization of the Executive Branch stated:

It is an anomaly that a regulatory commission should also conduct the executive function of managing a huge business; that executive functions should be carried on by an agency that is not subject to Presidential directions; that executive functions should be carried on by a full-time board * * *.

While the recommendations of the various studies differ in some details, they agree on principles and on the main features of reorganization.

Basically, the administrative difficulties of the Maritime Commission have arisen, as all these studies agree, from the fact that the Commission is responsible for performing two fundamentally different types of functions which call for different types of organization. These two classes of functions are (a) regulatory and (b) operating and promotional. Under various acts the Commission regulates rates and services of water carriers; passes on agreements among carriers; and protects shippers against unfair and discriminatory practices. This type of activity requires the deliberation and independence of judgment which a board or commission is especially well designed to provide. But at the same time the Commission is charged with the conduct of a variety of large and costly promotional and business-type programs demanding the prompt and vigorous administration for which experience both in Government and in private enterprise has demonstrated that a single executive is essential.

The Maritime Commission has charge of the construction of merchant vessels for subsidized operators and for Government account. It owns and maintains the largest merchant fleet in the world, consisting of 2,200 vessels aggregating more than 22,000,000 dead-weight tons. It charters and sells ships and, in time of war or national emergency, requisitions and operates vessels for the Government. It grants construction and operating differential subsidies to private shipping companies to maintain an active privately operated American merchant marine. It makes loans and insures mortgages to assist carriers in acquiring new vessels, and it conducts programs for training officers and seamen for the merchant marine. For the present fiscal year the performance of these functions will involve the expenditure of approximately $162,000,000 and the direction of an organization of 5,500 employees. In short, the administration of the Maritime Commission is a vast business undertaking. Moreover, the work of the Commission affects significantly the interests of both business and labor in the maintenance of a sound maritime industry.

Further than this, many of the activities of the Maritime Commission are closely related to other programs of the Government and have to be coordinated with them. In the construction of a subsidized ship the Commission must cooperate with the Coast Guard on those features of design, materials, and equipment which affect the safety of the vessel and with the Navy on those which especially affect the use of the ship for national defense. Furthermore, the whole program of subsidized ship construction needs to be adjusted to the plans and requirements for national defense. At the same time the Commission's programs for the development of the merchant marine must be coordinated with our foreign policy and with Federal programs with respect to other branches of transportation.

While an independent commission is an appropriate instrument for the performance of the regulatory functions of the Maritime Commission, such an agency obviously is not the type required to provide strong and efficient administration of the large operating programs now entrusted to the Commission or to obtain the needed coordination with other activities of the executive branch. This fact is amply demonstrated by the administrative difficulties and the complicated problems of coordination encountered in the operation of the Commission since the war and by the necessity of transferring a large part of its functions to the War Shipping Administration, headed by a single executive, during the war.

Briefly, this reorganization plan provides for a small Federal Maritime Board and a Maritime Administration in the Department of Commerce to perform the functions of the Maritime Commission, and abolishes the existing Commission. It transfers to the Board the regulatory functions of the Commission and definitely guarantees the independence of the Board in the performance of these functions. In addition, it vests directly in the Board the determination and award of construction and operating differential subsidies. In the performance of its subsidy functions the Board will be subject to general policy guidance by the Secretary of Commerce. The Board, however, and it alone, will determine to whom subsidies shall be granted and will make and award the subsidy contracts. Its actions therein will be conclusive and will not be subject to modification by any other agency or officer of the Department of Commerce. The other functions of the Maritime Commission, including carrying out the subsidy agreements made by the Board and administering the various operating programs, are transferred to the Secretary of Commerce for administration through the Maritime Administration. Thus, the plan provides for each of the two types of functions now vested in the Maritime Commission the type of organization best suited to its performance. At the same time, the plan will facilitate coordination of maritime policies and programs with other related policies and programs.

The division of functions under this plan conforms directly to the recommendations of the Commission on Organization of the Executive Branch of the Government. While the award of subsidies is a promotional rather than a regulatory function and might logically be assigned to the Maritime Administration instead of the Board, its impact on the shipping industry and on individual carriers is such as to make desirable the deliberation and combined judgment of a board. Accordingly, I have adhered to the recommendation of the Commission on Organization that this function be vested in a multiple body rather than a single official. Likewise, in line with the recommendations of the Commission, the plan assigns the determination of the over-all route pattern to the Secretary of Commerce.

The Maritime Board will consist of three members appointed by the President with the consent of the Senate for overlapping terms of 4 years. Not more than two of the members can be of the same political party. The Board, therefore, will be a smaller and more wieldy body which can function with greater expedition and efficiency than the existing five-member Commission. The Chairman will be designated by the President from the members of the Board and will be, ex officio, the Maritime Administrator and as such the head of the Maritime Administration. The plan also provides for a Deputy Maritime Administrator appointed by the Secretary of Commerce under the classified civil service. After investigation I have found, and hereby declare, that by reason of the reorganizations made by this plan, it is necessary to include in the plan provisions for the appointment and compensation of the members of the Federal Maritime Board and for the appointment of the Deputy Maritime Administrator.

In making the Chairman of the Federal Maritime Board the Maritime Administrator, the plan adopts an arrangement substantially similar to that which prevailed during the war, when the same individual served as Chairman of the Maritime Commission and head of the War Shipping Administration. This arrangement will have important advantages. It will facilitate cooperation between the Board and the Administration on matters of concern to both. Also, it will avoid dividing the personnel of the Maritime Commission, since the Chairman of the Board will supervise the personnel assisting it in the performance of its functions, as is now the case in the Maritime Commission, and in his capacity as Administrator he will have charge of the personnel carrying on the work of the Maritime Administration. The plan provides for the joint operation of the officers and employees under the Administrator and Chairman as a single body of personnel. The maintenance of a unified staff is essential for efficient and economical administration because many of the technical and professional personnel, such as ship designers and attorneys, now assist the Maritime Commission on problems of subsidy determination and also participate in the subsequent administration of subsidy agreements and in performing nonsubsidy functions.

The inclusion of the new Board in the Department of Commerce will permit the use of the administrative services of the Department. More important, it will eliminate the necessity of splitting the personnel of the Maritime Commission between the Department and an outside agency. In addition, it will relieve the President of having to handle relations with a separate maritime agency.

In establishing the Department of Commerce the Congress provided in the organic act of the Department that—

It shall be the province and duty of said Department to foster, promote, and develop the foreign and domestic commerce, * * * shipping, * * * and the transportation facilities of the United States.

Over the years, however, transportation functions have become widely scattered throughout the executive branch. As a result, intelligent planning and budgeting of Federal transportation activities and the necessary coordination of transportation programs have become extremely difficult or impossible. The transfer of the functions of the Maritime Commission to the Department of Commerce will constitute a major step in correcting this condition.

Without question the Department of Commerce is now the appropriate center for transportation programs. It contains the Civil Aeronautics Administration—the major operating and promotional agency of the Government in the field of air transportation—and the Weather Bureau, and the Coast and Geodetic Survey, which provide vital services to transportation. As a result of Reorganization Plan No. 7 of 1949, it now also includes the Bureau of Public Roads, the leading promotional agency dealing with land transportation. Also, it has the Inland Waterways Corporation in the field of water transportation. The transfer of the functions of the Maritime Commission will bring into the Department the principal water-transportation agency of the Government. These actions will go a long way toward the establishment of a sound and effective organization for the operating and promotional programs of the Government relating to transportation.

It is my purpose to look to the Secretary of Commerce for leadership with respect to transportation problems and for the development of over-all transportation policy within the executive branch. Because of the magnitude and importance of the transportation functions transferred to the Department of Commerce by this reorganization plan, I have found and hereby declare that it is necessary to strengthen the top administrative structure of the Department by providing for the appointment and compensation of a new Under Secretary of Commerce for Transportation. This will make available an officer of the highest rank to assist the Secretary in supervising the varied and complex transportation programs of the Department and providing central leadership in transportation matters. With the many responsibilities of the Secretary of Commerce in other areas, the creation of this office is essential to enable him properly to fulfill his obligations with respect to transportation.

After careful investigation I have found and I hereby declare that each of the reorganizations contained in this reorganization plan is necessary to accomplish one or more of the purposes set forth in section 2(a) of the Reorganization Act of 1949. The rates of compensation fixed by the provisions of the reorganization plan for the Under Secretary of Commerce for Transportation, the Chairman, and the other two members of the Federal Maritime Board are, respectively, those which I have found to prevail in respect of comparable officers in the executive branch of the Government.

In summary, the reorganizations provided by this plan will have the following principal advantages: They will provide an efficient organization headed by a single responsible official to administer the large operating and business-type programs of the Maritime Commission. At the same time, they will preserve the benefits of a bipartisan board for the performance of the regulatory functions of the Commission and the determination of subsidies. They will reduce the number of agencies reporting directly to the President and simplify the over-all management of the executive branch. In doing so, they will provide more adequate machinery for supervising the administration of the maritime programs and will facilitate their coordination with related policies and programs of the executive branch. Finally, they will accomplish a major advance in the development of an effective organization of Federal transportation programs in accord with the recommendations of the Commission on Organization of the Executive Branch of the Government. While it is impossible to estimate in advance the savings which will be brought about by this plan, the improvements in administrative efficiency resulting from it should produce substantial reductions in expenditures for the programs transferred by the plan.

Harry S Truman.      


The White House, March 13, 1950.

REORGANIZATION PLAN NO. 6 OF 1949

Eff. Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, June 20, 1949, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949 [see 5 U.S.C. 901 et seq.].

UNITED STATES MARITIME COMMISSION

Section 1. Administration of Functions of Commission

The Chairman of the United States Maritime Commission shall be the chief executive and administrative officer of the United States Maritime Commission. In executing and administering on behalf of the Commission its functions (exclusive of functions transferred by the provisions of section 2 of this reorganization plan) the Chairman shall be governed by the policies, regulatory decisions, findings, and determinations of the Commission.

Sec. 2. Transfer of Functions

There are hereby transferred from the United States Maritime Commission to the Chairman of the Commission the functions of the Commission with respect to (1) the appointment and supervision of all personnel employed under the Commission, (2) the distribution of business among such personnel and among organizational units of the Commission, and (3) the use and expenditure of funds for administrative purposes: Provided, That the provisions of this section do not extend to personnel employed regularly and full time in the offices of members of the Commission other than the Chairman: Provided further, That the heads of the major administrative units shall be appointed by the Chairman only after consultation with the other members of the Commission.

Sec. 3. Performance of Transferred Functions

The functions of the Chairman under the provisions of this reorganization plan shall be performed by him or, subject to his supervision and direction, by such officers and employees under his jurisdiction as he shall designate.

Message of the President

To the Congress of the United States:

I transmit herewith Reorganization Plan No. 6 of 1949, prepared in accordance with the Reorganization Act of 1949. This plan is designed to strengthen the administration of the United States Maritime Commission by making the Chairman and the chief executive and administrative officer of the Commission and vesting in him responsibility for the appointment of its personnel and the supervision and direction of their activities. After investigation, I have found and hereby declare that each reorganization included in this plan is necessary to accomplish one or more of the purposes set forth in section 2(a) of the Reorganization Act of 1949.

Unlike other major regulatory commissions, the Maritime Commission is responsible not only for the performance of important regulatory functions but also for the administration of large and complex operating and promotional programs. Whereas the budgets of most regulatory agencies amount to only a few million dollars annually, the expenditures of the Maritime Commission exceed $130,000,000 a year. As a result of the war the Commission is the owner of a fleet of over 2,300 ships, aggregating more than 23,000,000 dead-weight tons.

While it is the policy of the Government, as set forth by the Merchant Marine Act of 1936 and the Merchant Ship Sales Act of 1946, to develop and maintain an adequate and effective merchant marine under private ownership, the Commission is still confronted with the necessity of carrying on substantial programs for the charter and sale of Government-owned vessels and with the continuing task of maintaining the reserve merchant fleet.

Apart from its functions with respect to the war-built fleet, the accomplishment of the Government's permanent objective with respect to the development of the American merchant marine inevitably involves the Commission to a wide variety of activities. Among these are the regulation of rates and competitive practices of water carriers, the determination of essential trade routes and services, the award of subsidies to offset differences between American and foreign costs, the design and construction of ships, the inspection of subsidized vessels, and the training of seamen.

In the last 2 years the operation of the Maritime Commission has been subjected to independent examination by three bodies—the President's Advisory Committee on the Merchant Marine, the Senate Committee on Expenditures in the Executive Departments, and the Commission on Organization of the Executive Branch of the Government. All of these studies have pointed to difficulties in the conduct of the Commission's business and the necessity of improved organization to strengthen the administration of the agencies. The remedies proposed have differed in some respects, but all the studies have emphasized the need of concentrating in a single official the management of a large part of the agency's work.

During the war such a concentration was temporarily accomplished by Executive order under the authority of the First War Powers Act. In effect, the Chairman of the Commission, as War Shipping Administrator, was made directly responsible for the administration of several major operating programs of the Commission. This arrangement proved its value under the stress of war. About a year after the end of the fighting, however, it was terminated and the organization reverted to the prewar pattern.

As a result of postwar experience, the Commission appointed a general manager in 1948. While this has brought considerable improvement, it has not extricated the Commission from administration to the degree which is desirable.

After careful consideration of the problems involved in improving the operation of the Maritime Commission, I have concluded that the proper action at this time is to concentrate in the Chairman the responsibility for the internal administration of the agency. This is achieved by the proposed reorganization plan by transferring to the Chairman the appointment of the personnel of the agency, except for the immediate assistants of the Commissioners, and the supervision and direction of their work. This is substantially the arrangement recommended for regulatory commissions by the Commission on Organization of the Executive Branch of the Government.

Such a plan of organization has many advantages. It leaves in the Commission as a body the performance of regulatory functions, the determination of subsidies, and the determination of major policies. Thus, it utilizes the Commission for the type of work for which such a body is best adapted. At the same time the plan places under a single official the day-to-day direction of the work of the staff within the policies and determinations adopted by the Commission in the exercise of its functions. This will provide more businesslike administration and help to overcome the delays, backlogs, and operating difficulties which have hampered the agency. At the same time by freeing the members of the Commission of much detail, the plan will enable them to concentrate on major questions of policy and program and thereby will obtain earlier and better considered resolution of the basic problems of the agency.

Though the taking effect of this plan in itself may not result in substantial immediate economies, it is probable that the improved organizational arrangements will bring about, over a period of time, improved operations and substantially reduced expenditures. An itemization of these reductions, however, in advance if actual experience under the plan is not practicable.

I am convinced that this reorganization plan will contribute importantly to the more businesslike and efficient administration of the programs of the Maritime Commission.

Harry S Truman.      

The White House, June 20, 1949.

Federal Maritime Board and Maritime Administration

The following is a statement, in part, of the Department of Commerce, relating to the organization and functions of the Federal Maritime Board, and the Maritime Administration, created by Reorg. Plan No. 21 of 1950, set out above, as such statement appeared in 16 F.R. 44 to 46, Jan. 3, 1951:

The statement of organization and functions of the Maritime Administration issued in 15 F.R. 4454–4457 is hereby revoked and the following substituted therefor:

1. Establishment. The Federal Maritime Board and the Maritime Administration were established in the Department of Commerce by Reorganization Plan No. 21 of 1950, effective May 24, 1950 [set out above]. In performance of their functions the Federal Maritime Board and the Maritime Administration are guided by the broad declaration of policy stated in Title I of the Merchant Marine Act, 1936 (49 Stat. 1985) [46 U.S.C. 1101], reaffirmed in section 2 of the Merchant Ship Sales Act, 1946 (60 Stat. 41) [50 App. U.S.C. 1735] * * *.

2. Organization of the Federal Maritime Board. The Federal Maritime Board is composed of three members appointed by the President by and with the advice and consent of the Senate. The President designates one of the members to serve as Chairman of the Federal Maritime Board. The Chairman serves as chief executive and administrative officer of the Federal Maritime Board. Any two members in office constitute a quorum for the transaction of the business of the Federal Maritime Board, and the affirmative votes of any two members are sufficient for the disposition of any matter which may come before the Federal Maritime Board.

The Federal Maritime Board has the following organizational components: (a) Office of the Chairman of the Federal Maritime Board; (b) Offices of the Members of the Federal Maritime Board; (c) Secretary's Office; (d) Regulation Office; and (e) Hearing Examiners’ Office.

Insofar as he deems desirable, the Chairman of the Federal Maritime Board makes use of the officers and employees of the Maritime Administration to perform activities for the Federal Maritime Board.

3. Functions of the Federal Maritime Board—(a) Regulatory functions. Under Reorganization Plan No. 21 of 1950 the Federal Maritime Board is independent of the Secretary of Commerce in the performance of the following functions: (1) All functions under the provisions of sections 14 to 20, inclusive, and sections 22 to 33, inclusive, of the Shipping Act, 1916, as amended [former 46 U.S.C. 812–819, 821–832], including such functions with respect to the regulation and control of rates, services, practices, and agreements of common carriers by water and of other persons;

(2) All functions with respect to the regulation and control of rates, fares, charges, classifications, tariffs, regulations, and practices of common carriers by water under the provisions of the Intercoastal Shipping Act, 1933, as amended [former 46 U.S.C. 843–848];

(3) The functions with respect to the making of rules and regulations affecting shipping in the foreign trade to adjust or meet conditions unfavorable to such shipping, and with respect to the approval, suspension, modification, or annulment of rules or regulations of other Federal agencies affecting shipping in the foreign trade, under the provisions of section 19 of the Merchant Marine Act, 1920, as amended [46 U.S.C. 876], exclusive of subsection (1)(a) thereof;

(4) The functions with respect to investigating discriminatory rates, charges, classifications, and practices in the foreign trade, and with respect to recommending legislation to correct such discrimination, under the provisions of section 212(e) of the Merchant Marine Act, 1936 [46 U.S.C. 1122(e)]; and

(5) So much of the functions with respect to requiring the filing of reports, accounts, records, rates, charges, and memoranda, under the provisions of section 21 of the Shipping Act, 1916, as amended [former 46 U.S.C. 820], as relates to its functions under items (1) through (4), above.

(b) Subsidy contracts. Under Reorganization Plan No. 21 of 1950 the Federal Maritime Board is guided by the general policies of the Secretary of Commerce in performing the following functions: (1) The functions with respect to making, amending, and terminating construction (reconstruction or reconditioning) differential subsidy contracts, including contracts for the construction, reconstruction, or reconditioning of vessels and contracts for the sale of vessels to subsidy applicants or contracts to pay a differential subsidy and the cost of national defense features. In the exercise of this function the Federal Maritime Board investigates and determines the relative cost of construction of comparable vessels in the United States and foreign countries and the extent and character of aids and subsidies granted by foreign governments to their merchant marines;

(2) The functions with respect to making, amending, and terminating operating differential subsidy contracts and, subsequent to entering into an operating differential subsidy contract, making determinations with respect to employment and wage conditions, and taking action on readjustment of operating cost differentials and the sale, assignment, or transfer of the contract. In the exercise of this function the Federal Maritime Board investigates and determines the relative cost of operating vessels under the registry of the United States and under foreign registry, and the extent and character of aids and subsidies granted by foreign governments to their merchant marines;

(3) The functions with respect to investigating and reporting on relative construction and operating costs in the United States and foreign maritime countries, and the relative advantages of operating under United States or foreign registry, and on marine insurance, navigation laws, and vessel mortgages as authorized under section 12 of the Shipping Act, 1916 [former 46 U.S.C. 811]; and

(4) The functions with respect to requiring the filing of reports, accounts, records, rates, charges, and memoranda as relates to its functions as set forth in items (1), (2), and (3), above.

(c) Charters under the Merchant Ship Sales Act, 1946. The Federal Maritime Board makes determinations, after public hearings, as to whether the bareboat charter of warbuilt dry cargo vessels owned by the United States is required in the public interest in any service then not adequately served and for which privately owned American-flag vessels are not available for charter by private operators on reasonable conditions and rates, and certifies its findings to the Secretary of Commerce together with any restrictions and conditions which it determines to be necessary or appropriate to protect the public interest in respect to such charters and to protect privately owned vessels against competition from Government vessels chartered by the Secretary of Commerce. All such charters are reviewed annually by the Federal Maritime Board for the purpose of making recommendations to the Secretary of Commerce as to whether conditions exist justifying the continuance of the charters. The functions of the Secretary of Commerce with respect to the chartering of vessels has been delegated to the Maritime Administrator.

(d) War risk insurance. Pursuant to Public Law 763, 81st Congress [46 U.S.C. 1281–1294], the Federal Maritime Board makes determinations of the fair and reasonable value of vessels insured under the provisions of Title XII of the Merchant Marine Act, 1936, as amended [46 U.S.C. 1281–1294]. The Secretary of Commerce may not settle an insurance claim with respect to a vessel in an amount in excess of the vessel's fair and reasonable value as determined by the Federal Maritime Board.

(e) In carrying out its functions under paragraphs (a), (b), (c) and (d), above, the Federal Maritime Board adopts rules and regulations; makes reports and recommendations to Congress; subpoenas witnesses; administers oaths; takes evidence; requires the production of books, papers and documents as necessary; issues opinions; promulgates orders; engages in enforcement and other legal proceedings; and performs all functions formerly performable by the Maritime Commission, which have been transferred to the Federal Maritime Board pursuant to Reorganization Plan No. 21 of 1950.

4. Organization of the Maritime Administration—(a) Maritime Administrator. The Chairman of the Federal Maritime Board is ex officio the Maritime Administrator. When serving as Maritime Administrator, he reports and is responsible to the Secretary of Commerce.

(b) Deputy Maritime Administrator. The Maritime Administrator is assisted in his duties by a Deputy Maritime Administrator, who is the Acting Maritime Administrator during the absence or disability of the Maritime Administrator and, unless the Secretary of Commerce designates another person, during a vacancy in the Office of Maritime Administrator. The Deputy Maritime Administrator is appointed by the Secretary of Commerce, after consultation with the Maritime Administrator. The Deputy Maritime Administrator at no time sits as a member of the Federal Maritime Board.

(c) Organizational components. The Maritime Administration has the following organizational components: (1) Office of the Maritime Administrator; (2) Staff Offices including the Office of the General Counsel, the Program Planning Office, the Budget Office, and the Personnel Office; (3) Division of Claims; (4) Office of Subsidy and Government Aid; (5) Office of Maritime Operations; (6) Office of Ship Construction; (7) Office of the Comptroller; and (8) Offices of the Coast Directors.

(d) Use of officers and employees of the Federal Maritime Board. Insofar as he deems desirable, the Maritime Administrator makes use of officers and employees of the Federal Maritime Board under his supervision as Chairman to perform activities for the Maritime Administration.

(5) Functions of the Maritime Administrator. The Maritime Administrator is responsible for the performance of all functions transferred to the Secretary of Commerce under Reorganization Plan No. 21 of 1950, subject to the limitations set forth in Department Order No. 116, as amended, with power of redelegation, and for the performance of activities for the Federal Maritime Board as determined desirable by the Chairman of the Federal Maritime Board.

(a) The Office of the Maritime Administrator directs the activities of the Maritime Administration and includes personnel who render staff services to the Maritime Administrator.

(b) The Office of the General Counsel serves as the law office of the Maritime Administration and Federal Maritime Board, renders legal advice and opinions to them, and represents them in any litigation in which either is interested. The Office of the General Counsel has the following divisions: Division of Contracts, Division of Legislation, and Division of Litigation.

(c) The Program Planning Office develops and recommends long-range merchant marine policy and programs, reviews existing policies and programs in the light of adopted long-range policy, and conducts economic studies connected with policy formulation for the Maritime Administrator and the Federal Maritime Board.

(d) The Budget Office develops and presents budgetary requests and justifications and allots and maintains budgetary control of appropriated funds for the Maritime Administration and the Federal Maritime Board.

(e) The Personnel Office administers the personnel functions of the Maritime Administration and the Federal Maritime Board related to employment and position classification, including recruitment, placement, separations, disciplinary actions, counseling and grievance appeal services, training and safety programs, and wage rate studies.

(f) The Division of Claims is responsible for analyzing and recommending the basis of settlement of claims in favor of or against the Maritime Administration arising out of the war-time operations of the former Maritime Commission and War Shipping Administration and other claims referred to it for processing prior to August 22, 1949.

(g) The Office of Subsidy and Government Aid is responsible for the processing of applications to the Federal Maritime Board and the Maritime Administration for subsidy or other government aid and the administration of government aid contracts after their execution, for the coordination of the work of other organizational components in connection therewith, and for the making of recommendations with respect to the policy relating to vessel chartering. The Office of Subsidy and Government Aid has the following divisions: Division of Construction Cost Comparison, Division of Contract Evaluation and Administration, Division of Operating Cost Comparison, and Division of Shipping Data.

(h) The Office of Maritime Operations is responsible for the conduct of activities relating to the charter, operation, repair, reconversion, betterment, reconditioning, and disposal of government-owned merchant vessels; the maintenance of reserve fleets; the training of seagoing personnel; the procurement and disposal of real and personal property; the maintenance or operation of warehouses, marine terminals and reserve shipyards port development; and the rendering of office services. The Office of Maritime Operations has the following divisions: Division of General Services, Division of Maintenance and Repair, Division of Maritime Training, Division of Vessel Custody, and Division of Vessel Operations.

(i) The Office of Ship Construction is responsible for the conduct of activities of the Maritime Administration and the Federal Maritime Board relating to ship design and construction, and the rendering of technical direction to the Office of Maritime Operations with respect to the reconversion, betterment and reconditioning of Maritime Administration-owned vessels. The Office of Ship Construction has the following divisions: Division of Estimates, Division of Preliminary Design, Division of Production, and Division of Technical Development; and contains the Vessel Trial and Guarantee Survey Boards.

(j) The Office of the Comptroller is responsible for the accounting, auditing, and insurance activities of the Maritime Administration and the Federal Maritime Board. The Office of the Comptroller has the following divisions: Division of Accounts, Division of Audits, Division of Credits and Collections, and Division of Insurance.

(k) The Offices of the Atlantic, Gulf, and Pacific Coast Directors are responsible for maintaining general surveillance over the management of field offices of the various organizational components located on their respective coasts.

6. Filing of applications and other formal documents. All applications and other formal documents required to be filed with either the Federal Maritime Board or the Maritime Administration shall be filed with the Secretary's Office, Federal Maritime Board.

National Shipping Authority and Additional Functions of Maritime Administrator

The following is a statement of the Department of Commerce, 16 F.R. 2642, 2643, Mar. 23, 1951, amending the statement of such Department set out in 16 F.R. 44 to 46, Jan. 3, 1951 (set out as a note above):

The statement of organization and functions of the Federal Maritime Board and the Maritime Administration issued in 16 F.R. 44 [set out as a note above] is amended by the addition of the following:

Establishment of the National Shipping Authority. There is established in the Maritime Administration a National Shipping Authority, headed by a Director responsible to the Maritime Administrator.

The National Shipping Authority shall perform such functions in connection with the formulation and execution of plans and programs for the operation, acquisition, and allocation of merchant vessels and such other duties as the Maritime Administrator, within the scope of his authority, may from time to time direct.

Functions of the Maritime Administrator. In addition to the functions contained in paragraph 5 of 16 F.R. 44, the Maritime Administrator shall perform the following functions:

(a) The functions conferred upon the Secretary of Commerce by Public Law 591, 81st Congress, 2d Session [46 U.S.C. note prec. 1, 883 note; 50 App. U.S.C. 1735 note, 1738, 1744];

(b) The functions conferred upon the Secretary of Commerce by Public Law 763, 81st Congress, 2d Session [46 U.S.C. 1281–1294], except that the authority “to find that insurance adequate to the needs of the waterborne commerce of the United States cannot be obtained on reasonable terms and conditions in companies authorized to do an insurance business in a State of the United States” is reserved to the Secretary;

(c) The functions conferred upon the Secretary by Public Law 911, 81st Congress, 2d Session [act Jan. 6, 1951, ch. 1213, 64 Stat. 1224];

(d) The functions conferred upon the Secretary by Reorganization Plan No. 21 of 1950 [set out above] to take action with respect to the determination of essential trade routes and services or subsequent modifications;

(e) The functions conferred upon the Secretary by Reorganization Plan No. 21 of 1950 to establish policies of general application for the purchase, acquisition, construction, charter, and sale of vessels and for the administration of programs concerning operating subsidies, reserve funds and transfers to foreign ownership or registry, and charters to foreigners.

The Maritime Administrator may redelegate to officers and employees of the Maritime Administration the performance of particular functions herein assigned to the Maritime Administrator.

Effect on other notices. All orders, regulations, rulings, certificates, directives, and other actions heretofore issued or taken under the notices appearing at 15 F.R. 8739 and 16 F.R. 1130 and in effect immediately prior to the effective date of this notice shall remain in full force and effect until hereafter suspended, amended, or revoked under appropriate authority.

This notice amends the notice issued in 15 F.R. 3195, “Temporary Delegations of Authority under Reorganization Plan No. 21 of 1950.”

Effective date. This notice is effective March 13, 1951.

Appointment of Personnel

The following is a legal opinion, in part, dated August 29, 1950, and prepared by the General Counsel of the Maritime Administration, with respect to the authority of the chairman of the Federal Maritime Board to make appointments of personnel under the Board and the extent of the authority of the Secretary of Commerce under Reorg. Plan No. 21 of 1950, set out above, as to such personnel:

Sec. 103 of Reorganization Plan 21 of 1950 [set out above] transferred to the Chairman of the Federal Maritime Board “all functions of the Chairman of the United States Maritime Commission (including his functions under the provisions of Reorganization Plan No. 6 of 1949 [set out above]) with respect to the functions transferred to the Board by the provisions of Sections 104 and 105” of Plan 21. Section 104 transferred to the Board the regulatory functions of the Maritime Commission and Section 105 transferred certain of the subsidy functions of the Commission, not including, however, the function of administering subsidy contracts.

Sec. 106 of Plan 21 provides for the status of the Board and of the Chairman and their relationship to the Secretary of Commerce. * * *.

In order to fully understand the intent of Plan 21, it is necessary to examine the status of the appointing authority of the Chairman of the Maritime Commission immediately prior to the transfer of functions under Plan 21. As set forth above, Section 103 of Plan 21 makes specific reference to the authority of the Chairman of the Commission under Plan 6 of 1949 as being transferred to the Chairman of the Board.

Reorganization Plan 6 was transmitted by the President to Congress on June 20, 1949. Its purpose as stated in the message of transmittal [set out in Appendix to Title 5, Government Organization and Employees] was “to strengthen the administration of the United States Maritime Commission by making the Chairman the chief executive and administrative officer of the Commission and vesting in him responsibility for the appointment of its personnel and the supervision and direction of their activities.” (Emphasis supplied.)

Section 2 of Plan 6 transferred from the Commission to the Chairman certain functions including the appointment of personnel (exclusive of “personnel employed regularly and full time” in the offices of other members) with the proviso that the Chairman would consult with other members before appointing the heads of major administration units. Section 1 of Plan 6 provided that in exercising certain functions the Chairman should be guided by policies of the Commission. This section significantly excepted from such requirement the authority transferred to the Chairman under Section 2 including the appointive authority. Thus the appointive authority (excluding only personnel in offices of Commission members) was exclusively and, except for the proviso relating to heads of major units, unconditionally vested in the Chairman of the Commission until Plan 21 took effect.

Plan 21 transferred all the functions of the Commission and of the Chairman of the Commission. As stated above, some of these functions went to the Federal Maritime Board (Secs. 104, 105). Others were transferred to the Chairman of the Board (Sec. 103). Functions not otherwise transferred went to the Secretary of Commerce (Sec. 204).

The functions transferred to the Board and to the Chairman relate to regulatory authority (to be exercised independently) and subsidy functions (to be exercised subject to the guidance of general policies established by the Secretary of Commerce). As Section 103 transferring functions to the Chairman relating to these subjects makes specific reference to the authority of the Chairman of the Commission under Plan 6, which included the appointment of personnel, it appears evident that so much of the appointive power as relates to personnel performing these functions passed to the Chairman of the Board to be exercised by him independently as to personnel performing regulatory functions and subject to the injunction of Sec. 106 (to be guided by the policies of the Secretary of Commerce) as to personnel performing services in connection with the subsidy functions performed by the Board.

This conclusion is reinforced by reference to a decision of the Attorney General to the Secretary of Commerce, dated May 13, 1940, construing somewhat similar provisions in a reorganization plan transferring to the Department certain functions of the Civil Aeronautics Authority [Reorg. Plan No. IV of 1940, §7, eff. June 30, 1940, 5 F.R. 2421, 54 Stat. 1234, set out in the Appendix to Title 5, Government Organization and Employees] * * *. Despite the specific mention of the personnel functions the Attorney General held that the appointive authority was in the Board. This decision was based upon reasoning recognizing the practical fact that independence in the exercise of the functions of the Board could not be achieved if the control of personnel and finances of the Board were in the Secretary of Commerce.

I have reached the conclusion that the appointive authority as to personnel engaged in regulatory and certain of the subsidy functions is vested in the Chairman, notwithstanding certain facts which might tend to indicate a different result.

Chief among these is the statement contained in the President's message transmitting Plan 21, as follows:

“In making the Chairman of the Federal Maritime Board the Maritime Administrator, the plan adopts an arrangement substantially similar to that which prevailed during the war, when the same individual served as Chairman of the Maritime Commission and head of the War Shipping Administration. This arrangement will have important advantages. It will facilitate cooperation between the Board and the Administration on matters of concern to both. Also, it will avoid dividing the personnel of the Maritime Commission, since the Chairman of the Board will supervise the personnel assisting it in the performance of its functions, as is now the case in the Maritime Commission, and in his capacity as Administrator he will have charge of the personnel carrying on the work of the Maritime Administration. The plan provides for the joint operation of the officers and employees under the Administrator and Chairman as a single body of personnel. The maintenance of a unified staff is essential for efficient and economical administration because many of the technical and professional personnel, such as ship designers and attorneys, now assist the Maritime Commission on problems of subsidy determination and also participate in the subsequent administration of subsidy agreements and in performing nonsubsidy functions.

“The inclusion of the new Board in the Department of Commerce will permit the use of the administrative services of the Department. More important, it will eliminate the necessity of splitting the personnel of the Maritime Commission between the Department and an outside agency. * * *”.

A literal reading of portions of this statement might be used as a basis for argument that a single appointive authority was intended. This meaning cannot be given the statement, however, in view of the specific language of the Plan as previously discussed. It is more likely that the President had in mind the fact that the Plan seems to contemplate a delegation of authority from the Secretary to the Chairman-Administrator by providing in Sec. 204 that “The Secretary of Commerce may from time to time make such provisions as he shall deem appropriate authorizing the performance by the Maritime Administrator of any function transferred to such Secretary by the provisions of this reorganization plan.” Sec. 302 provides that the Chairman-Administrator shall make joint use of personnel.

Another argument against the conclusion stated could be based upon the fact that Plan 21 makes specific reference in transferring functions to the Board of certain titles and portions of the Merchant Marine Act, 1936, as amended [this chapter], without making any reference to Sec. 201(e) of that Act [subsec. (e) of this section] which is the source of the appointive authority formerly vested in the Commission. This argument fails, however, when consideration is given to the fact that immediately prior to Plan 21 this authority was vested not in the Commission but in the Chairman of the Commission under Plan 6 and is included in the specific reference to Plan 6.

It is clear that both Plan 21 and the President's transmittal message contemplate the use of personnel to perform dual functions for the Board and for the Administrator. It is equally clear that the Plan itself does not contain provisions vesting in a single appointive authority the power to establish such a group of personnel. It is evident, therefore, that the President contemplated that this objective be achieved by the Chairman's voluntarily utilizing the services of employees appointed under the authority of the Secretary to perform services in connection with Board functions and, in his capacity as Administrator, utilizing the services of employees employed by him under the direct grant of authority in the Plan to perform duties assigned to him by the Secretary. Thus the Plan, although directing the joint use of personnel, intends that result to be accomplished through the use of the administrative discretion granted the Chairman-Administrator by Section 302 of the Plan to be exercised in the interest of economy and efficiency, and does not vest exclusive appointing authority either in the Secretary or the Chairman-Administrator.

Cross References

Advertisements for proposals for purchases and contracts for supplies or services, see section 5 of Title 41, Public Contracts.

§1111a. Administrative expenses; limitations

After June 30, 1939, the Federal Maritime Commission and the Secretary of Transportation shall not incur any obligations for administrative expenses except pursuant to an annual appropriation specifically therefor or to authority to use appropriations or other funds otherwise available therefor.

(June 25, 1938, ch. 681, title I, 52 Stat. 1119; Aug. 6, 1981, Pub. L. 97–31, §12(59), 95 Stat. 158.)

Codification

Section was not enacted as part of the Merchant Marine Act, 1936, which comprises this chapter.

Amendments

1981—Pub. L. 97–31 substituted reference to the Federal Maritime Commission and the Secretary of Transportation for reference to the United States Maritime Commission. For prior transfers of functions of United States Maritime Commission, see Transfer of Functions note below.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§1112. Operation of property by Secretary

Notwithstanding any other provision of law, the Secretary of Transportation may, in accordance with good business methods and on such terms and conditions as he determines to effectuate the policy of this chapter, operate or lease any lands, docks, wharves, piers, or real property under his control, and all money received from such operation or lease shall be available for expenditure by the Secretary of Transportation as provided in this chapter. The Secretary of Transportation may, upon such terms and conditions as he may prescribe in accordance with sound business practice, make such extensions and accept such renewals of the notes and other evidences of indebtedness hereby transferred, and of the mortgages and other contracts securing the same, as he may deem necessary to carry out the objects of this chapter.

(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; Aug. 6, 1981, Pub. L. 97–31, §12(60), 95 Stat. 158.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission”, wherever appearing, “he” for “it”, and “his” for “its”, and struck out provision relating to transfer of money, etc., to the United States Maritime Commission. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

1938—Act June 23, 1938, permitted extensions and renewals of notes, other evidences of indebtedness, and mortgages.

1937—Act Aug. 26, 1937, permitted the operation or leasing of lands, docks, wharves, piers or real property.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Section Referred to in Other Sections

This section is referred to in section 1158 of this Appendix.

§1114. Transfer of powers; rules and orders

(a) Transfer of functions, powers, and duties

All the functions, powers, and duties vested in the former United States Shipping Board by the Shipping Act, 1916 [46 App. U.S.C. 801 et seq.], the Merchant Marine Act, 1920 [46 App. U.S.C. 861 et seq.], the Merchant Marine Act, 1928 [46 App. U.S.C. 891 et seq.], and amendments to those Acts, and now vested in the Department of Commerce pursuant to section 12 of the President's Executive Order [No. 6166] of June 10, 1933, are hereby transferred to the Federal Maritime Commission and the Secretary of Transportation: Provided, however, That after June 29, 1936, no further construction loans shall be made under the provisions of section 11 of the Merchant Marine Act, 1920, as amended.

(b) Rules and regulations

The Commission and the Secretary of Transportation are authorized to adopt all necessary rules and regulations to carry out the powers, duties, and functions vested in them by this chapter.

(c) Enforcement of orders; penalties for violations

The orders issued by the Federal Maritime Commission and the Secretary of Transportation in the exercise of the powers transferred to them by this subchapter shall be enforced in the same manner as heretofore provided by law for enforcement of the orders issued by the former United States Shipping Board, and violation of such orders shall subject the person or corporation guilty of such violation to the same penalties or punishment as heretofore provided for violation of the orders of said Board.

(June 29, 1936, ch. 858, §204, 49 Stat. 1987; June 23, 1938, ch. 600, §41, 52 Stat. 964; Aug. 6, 1981, Pub. L. 97–31, §12(61), 95 Stat. 158; Dec. 29, 1995, Pub. L. 104–88, title III, §335(c)(1), 109 Stat. 954.)

References in Text

The Shipping Act, 1916, referred to in subsec. (a), is act Sept. 7, 1916, ch. 451, 39 Stat. 728, as amended, which is classified generally to chapter 23 (§801 et seq.) of this Appendix. For complete classification of this Act to the Code, see section 842 of this Appendix and Tables.

The Merchant Marine Act, 1920, referred to in subsec. (a), is act June 5, 1920, ch. 250, 41 Stat. 988, as amended, which (except for sections repealed or reenacted in Title 46, Shipping) is classified principally to chapter 24 (§861 et seq.) of this Appendix. For complete classification of this Act to the Code, see section 889 of this Appendix and Tables.

The Merchant Marine Act, 1928, referred to in subsec. (a), is act May 22, 1928, ch. 675, 45 Stat. 689, as amended, which is classified principally to chapter 24A (§891 et seq.) of this Appendix. For complete classification of this Act to the Code, see section 891x of this Appendix and Tables.

Executive Order No. 6166 of June 10, 1933, referred to in subsec. (a), is set out under section 901 of Title 5, Government Organization and Employees.

Amendments

1995—Subsec. (a). Pub. L. 104–88 struck out “the Intercoastal Shipping Act, 1933,” after “the Merchant Marine Act, 1928,”.

1981—Subsec. (a). Pub. L. 97–31, §12(61)(A), substituted “Federal Maritime Commission and the Secretary of Transportation” for “United States Maritime Commission”. For prior transfers of functions of United States Maritime Commission, see Transfer of Functions note below.

Subsec. (b). Pub. L. 97–31, §12(61)(B)–(D), inserted “and the Secretary of Transportation” after “Commission” and substituted “are authorized” for “is authorized” and “vested in them” for “vested in it”. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

Subsec. (c). Pub. L. 97–31, §12(61)(A), (D), substituted “Federal Maritime Commission and the Secretary of Transportation” for “United States Maritime Commission” and “transferred to them” for “transferred to it”. For prior transfers of functions of United States Maritime Commission, see Transfer of Functions note below.

1938—Subsec. (b). Act June 23, 1938, struck out provisions which authorized the President to transfer to the Interstate Commerce Commission any or all regulatory powers, duties and functions of the United States Maritime Commission.

Effective Date of 1995 Amendment

Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 701 of Title 49, Transportation.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 21 of 1950 and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 1151, 1244 of this Appendix.

§1115. Discrimination at ports by carriers by water against other carriers

Without limiting the power and authority otherwise vested in the Federal Maritime Commission and the Secretary of Transportation, it shall be unlawful for any common carrier by water, either directly or indirectly, through the medium of an agreement, conference, association, understanding, or otherwise, to prevent or attempt to prevent any other such carrier from serving any port designed for the accommodation of ocean-going vessels located on any improvement project authorized by the Congress or through it by any other agency of the Federal Government, lying within the continental limits of the United States, at the same rates which it charges at the nearest port already regularly served by it.

(June 29, 1936, ch. 858, title II, §205, 49 Stat. 1987; Aug. 6, 1981, Pub. L. 97–31, §12(62), 95 Stat. 159.)

Amendments

1981—Pub. L. 97–31 substituted “Federal Maritime Commission and the Secretary of Transportation” for “Commission”. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

Repeals

For effect of subtitle IV (§10101 et seq.) of Title 49, Transportation, see note set out preceding section 801 of this Appendix.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§1116. Construction fund

All sums of money now in the construction loan fund created by section 11 1 of the Merchant Marine Act, 1920, as amended, together with the proceeds of all debts, accounts, choses in action, and the proceeds of all notes, mortgages, and other evidences of indebtedness, hereby transferred to the Department of Transportation, and all of the proceeds of sales of ships and surplus property heretofore or hereafter made, including proceeds of notes or other evidences of debt taken therefor and the interest thereon, and, notwithstanding any other provision of law, all money representing amounts of unclaimed wages, salvage awards and miscellaneous unclaimed items carried as liabilities on the books of the former United States Shipping Board Merchant Fleet Corporation and all money heretofore or hereafter received from the operation or leasing of lands, docks, wharves, piers, or real property shall be deposited in the Treasury of the United States and there maintained as a revolving fund, herein designated as the construction fund, and shall be available for expenditure by the Secretary of Transportation in carrying out the provisions of this chapter. All moneys received by the Department of Transportation under the provisions of this chapter shall be deposited in its construction fund, and all disbursements made by the Secretary of Transportation under authority of this chapter shall be paid out of said fund, and, notwithstanding any other provision of law, all disbursements applicable to the money referred to in this section may be made by the Secretary of Transportation out of said fund. Further appropriations by Congress to replenish said fund are authorized.

(June 29, 1936, ch. 858, title II, §206, 49 Stat. 1987; Aug. 26, 1937, ch. 822, §2, 50 Stat. 839; Aug. 6, 1981, Pub. L. 97–31, §12(63), 95 Stat. 159.)

References in Text

Section 11 of the Merchant Marine Act, 1920, as amended, referred to in text, was classified to section 870 of former Title 46, Shipping, and was repealed by act June 29, 1936, ch. 858, title IX, §903(b), 49 Stat. 2016.

Amendments

1981—Pub. L. 97–31 substituted “Department of Transportation” for “Commission” in two places and “Secretary of Transportation” for “Commission” in three places. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

1937—Act Aug. 26, 1937, amended section generally.

Effective Date of 1937 Amendment

Amendment effective as of June 29, 1936, see section 4 of act Aug. 26, 1937.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Limitations on Construction Fund

Acts July 30, 1947, ch. 359, title I, §101, 61 Stat. 603, and June 30, 1948, ch. 775, §101, 62 Stat. 1199, which were the Independent Offices Appropriation Act, 1948, and The Supplemental Independent Offices Appropriation Act, 1949, respectively, placed limitations on obligations from the construction fund established by this section.

Reduction of Contract Authorizations

Act May 29, 1945, ch. 136, 59 Stat. 226, authorized the transfer out of the unexpended balance of appropriations made to the Maritime Commission under the head “Construction fund, United States Maritime Commission Act, June 24, 1936, revolving fund” up until May 29, 1945, of the sum of $3,100,000,000 to be carried to the surplus fund and be covered into the Treasury and reduced the contract authorization for ship construction and facilities incident by $4,265,000,000.

Additional Appropriations

Act Aug. 25, 1941, ch. 409, title III, 55 Stat. 682, appropriated an amount not to exceed $1,296,650,000 to enable the Commission to enter into further contracts for the construction of vessels, production and procurement of parts, equipment, plants, etc.

Section Referred to in Other Sections

This section is referred to in sections 1116a, 1242 of this Appendix.

1 See References in Text note below.

§1116a. Application to obligations against emergency ship construction fund

On and after March 22, 1947, the construction fund established by section 1116 of this Appendix shall be available for the payment of obligations previously incurred against the emergency ship construction fund.

(Mar. 22, 1947, ch. 20, title II, 61 Stat. 18; 1950 Reorg. Plan No. 21, §306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1277.)

Codification

Words “United States Maritime Commission” preceding “construction fund” omitted and words “established by section 1116 of this Appendix” inserted following “construction fund” on authority of Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix.

Section was enacted as part of act Mar. 22, 1947, popularly known as the Urgent Deficiency Appropriation Act, 1947, and not as part of the Merchant Marine Act, 1936, which comprises this chapter.

§1117. Power to contract; audit of accounts; reports of Comptroller General

The Federal Maritime Commission and the Secretary of Transportation may enter into such contracts, upon behalf of the United States, and may make such disbursements as may, in its or his discretion, be necessary to carry on the activities authorized by this chapter, or to protect, preserve, or improve the collateral held by the Commission or Secretary to secure indebtedness, in the same manner that a private corporation may contract within the scope of the authority conferred by its charter. All the Commission's and Secretary's financial transactions shall be audited in the General Accounting Office according to approved commercial practice as provided in the Act of March 20, 1922 (42 Stat. 444): Provided, That it shall be recognized that, because of the business activities authorized by this chapter, the accounting officers shall allow credit for all expenditures shown to be necessary because of the nature of such authorized activities, notwithstanding any existing statutory provision to the contrary. The Comptroller General shall report annually or oftener to Congress any departure by the Commission or Secretary from the provisions of this chapter.

(June 29, 1936, ch. 858, title II, §207, 49 Stat. 1988; June 23, 1938, ch. 600, §2, 52 Stat. 954; Aug. 6, 1981, Pub. L. 97–31, §12(64), 95 Stat. 159.)

References in Text

Act of March 20, 1922, ch. 104, 42 Stat. 444, referred to in text, is not classified to the Code.

Amendments

1981—Pub. L. 97–31 substituted “Federal Maritime Commission and the Secretary of Transportation” for “Commission” first time it appeared, and inserted “or his” after “its”, “or Secretary” after “Commission” and “and Secretary's” after “Commission's”. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

1938—Act June 23, 1938, authorized disbursements, and provided for the protection, preservation, or improvement of collateral held to secure indebtedness.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Cross References

Advertisements for proposals for purchases and contracts for supplies or services, see section 5 of Title 41, Public Contracts.

Section Referred to in Other Sections

This section is referred to in title 11 section 362.

§1118. Reports to Congress

The Federal Maritime Commission and the Secretary of Transportation shall, by April 1 each year, make a report to Congress, which shall include the results of its or his investigations, a summary of its or his transactions, its or his recommendations for legislation, a statement of all receipts under this chapter, and the purposes for which all expenditures were made.

(June 29, 1936, ch. 858, title II, §208, 49 Stat. 1988; Apr. 21, 1976, Pub. L. 94–273, §36, 90 Stat. 380; Aug. 6, 1981, Pub. L. 97–31, §12(65), 95 Stat. 159.)

Amendments

1981—Pub. L. 97–31 substituted “Federal Maritime Commission and the Secretary of Transportation” for “Commission” and inserted “or his” after “its” in three places. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

1976—Pub. L. 94–273 substituted “by April 1 each year” for “at the beginning of each regular session”.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 1213, 1222 of this Appendix.

§1119. Authorization of appropriations

(a) Except as provided in subsection (b) of this section, there are authorized to be appropriated such sums as may be necessary to carry out the provisions of this chapter.

(b) Notwithstanding any other provision of this chapter or any other law, there are authorized to be appropriated after December 31, 1967, for the use of the Maritime Administration for—

(1) acquisition, construction, or reconstruction of vessels;

(2) construction-differential subsidy incident to the construction, reconstruction, or reconditioning of ships;

(3) cost of national defense features;

(4) payment of obligations incurred for operating-differential subsidy;

(5) expenses necessary for research and development activities (including reimbursement of the Vessel Operations Revolving Fund for losses resulting from expenses of experimental ship operations);

(6) reserve fleet expenses;

(7) maritime training at the Merchant Marine Academy at Kings Point, New York;

(8) financial assistance to State maritime academies under section 1295c of this Appendix;

(9) the Vessel Operations Revolving Fund;

(10) 1 expenses necessary for additional training provided under section 1295d of this Appendix;

(10) 1 expenses necessary to carry out subchapter XIII of this chapter; and

(11) other operations and training expenses related to the development of waterborne transportation systems, the use of waterborne transportation systems, or general administration;


only such sums as the Congress may specifically authorize by law: Provided, however, That the Congress finds and declares that the national policy set forth in section 1101 of this Appendix requires that there should be authorized and appropriated for fiscal years 1971 through 1980 such sums as may be necessary to construct 300 ships of such sizes, types and designs as the Secretary of Transportation may consider best suited to carry out the purposes and policy of this chapter.

(June 29, 1936, ch. 858, title II, §209, 49 Stat. 1988; Aug. 26, 1937, ch. 822, §3, 50 Stat. 839; Sept. 5, 1967, Pub. L. 90–81, 81 Stat. 193; Oct. 21, 1970, Pub. L. 91–469, §2, 84 Stat. 1018; Nov. 12, 1977, Pub. L. 95–173, §6(a), 91 Stat. 1360; Oct. 7, 1980, Pub. L. 96–387, §4, 94 Stat. 1546; Oct. 15, 1980, Pub. L. 96–453, §3(a), 94 Stat. 2008; Aug. 6, 1981, Pub. L. 97–31, §12(66), 95 Stat. 159.)

Codification

Subsec. (c) of this section, which related to availability, for all objects of expenditure under this chapter, of all appropriations and unexpended balances of appropriations in connection with then existing ocean-mail contracts entered into under sections 891e to 891r of former Title 46, Shipping, in connection with which the powers and duties with respect thereto had been transferred from the Postmaster General to the United States Maritime Commission by section 1144 of this Appendix, was omitted.

Subsec. (d) of this section, which made funds available under former subsection (b) available for expenditures authorized by former United States Maritime Commission under former provisions in section 1111 of this Appendix, as soon as a majority of the members of the United States Maritime Commission had taken the oath of office, notwithstanding section 1246 of this Appendix, was omitted.

Amendments

1981—Subsec. (b). Pub. L. 97–31 substituted “Secretary of Transportation” for “Secretary of Commerce”.

1980—Subsec. (b). Pub. L. 96–453, which directed that pars. (7) and (9) be amended, that par. (10), relating to other operations and training expenses, be redesignated as (11), and that a par. (10), relating to expenses necessary to carry out subchapter XIII of this chapter, be added, was executed by amending pars. (8) and (10), set out first, and adding a par. (10), set out second, as the probable intent of Congress, in view of the prior redesignation of par. (7) as (8), par. (9) as (10), set out first and (10) as (11) by Pub. L. 96–387. The amendment substituted in par. (8) “State maritime academies under section 1295c of this Appendix” for “State Marine Schools” and in par. (10) “for additional training provided under section 1295d” for “for extension and correspondence courses authorized under section 1126(c)” and added a par. (10), relating to expenses necessary to carry out subchapter XIII of this chapter.

Pub. L. 96–387 struck out in par. (2) “and cost of national defense features” after “subsidy”, added par. (3), and redesignated former pars. (3) to (10) as (4) to (11), respectively.

1977—Subsec. (b). Pub. L. 95–173 added pars. (9) and (10).

1970—Subsec. (b). Pub. L. 91–469 authorized appropriations for construction of 300 ships for fiscal years 1971 through 1980.

1967—Subsec. (a). Pub. L. 90–81 inserted “Except as provided in subsection (b) of this section” at beginning of subsec.

Subsec. (b). Pub. L. 90–81 added subsec. (b). A prior subsec. (b), making available to the United States Maritime Commission all appropriations and unexpended balances of the United States Shipping Board Bureau and the United States Shipping Board Merchant Fleet Corporation, had been eliminated as executed and obsolete.

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–453 effective Oct. 1, 1981, see section 4 of Pub. L. 96–453, set out as an Effective Date note under section 1295 of this Appendix.

Effective Date of 1977 Amendment

Section 6(b) of Pub. L. 95–173 provided that: “The amendment made by subsection (a) of this section [amending this section] shall be effective for fiscal years beginning after September 30, 1978.”

Cross References

Application of construction fund to obligations against the emergency ship construction fund, see section 1116a of this Appendix.

1 See 1980 Amendment note below.

§1120. Survey of existing merchant marine for creation of adequate American-owned fleet

It shall be the duty of the Secretary of Transportation to make a survey of the American merchant marine, as it now exists, to determine what additions and replacements are required to carry forward the national policy declared in section 1101 of this Appendix, and the Secretary of Transportation is directed to study, perfect, and adopt a long-range program for replacements and additions to the American merchant marine so that as soon as practicable the following objectives may be accomplished:

First, the creation of an adequate and well-balanced merchant fleet, including vessels of all types, to provide shipping service essential for maintaining the flow of the foreign commerce of the United States, the vessels in such fleet to be so designed as to be readily and quickly convertible into transport and supply vessels in a time of national emergency. In planning the development of such a fleet the Secretary of Transportation is directed to cooperate closely with the Navy Department as to national-defense needs and the possible speedy adaptation of the merchant fleet to national-defense requirements.

Second, the ownership and the operation of such a merchant fleet by citizens of the United States insofar as may be practicable.

Third, the planning of vessels designed to afford the best and most complete protection for passengers and crew against fire and all marine perils.

Fourth, the creation and maintenance of efficient shipbuilding and repair capacity in the United States with adequate numbers of skilled personnel to provide an adequate mobilization base.

(June 29, 1936, ch. 858, title II, §210, 49 Stat. 1989; Oct. 21, 1970, Pub. L. 91–469, §§3, 35(a), 84 Stat. 1018, 1035; Aug. 6, 1981, Pub. L. 97–31, §12(67), 95 Stat. 159.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Secretary of Commerce” wherever appearing.

1970—Pub. L. 91–469, §35(a), substituted “Secretary of Commerce” for “Commission”, twice in introductory par. and once in par. “First”.

Par. First. Pub. L. 91–469, §3(1), struck out “on all routes” after “shipping service”.

Par. Fourth. Pub. L. 91–469, §3(2), added par. “Fourth”.

Commission on Merchant Marine and Defense

Pub. L. 98–525, title XV, §1536, Oct. 19, 1984, 98 Stat. 2633, as amended by Pub. L. 99–145, title XIV, §1431, Nov. 8, 1985, 99 Stat. 754; Pub. L. 99–426, §1, Sept. 30, 1986, 100 Stat. 979, provided that:

“(a) There is hereby established a commission to be known as the Commission on Merchant Marine and Defense (hereinafter in this section referred to as the ‘Commission’).

“(b) The Commission shall study problems relating to transportation of cargo and personnel for national defense purposes in time of war or national emergency, the capability of the United States merchant marine to meet the need for such transportation, and the adequacy of the shipbuilding mobilization base of the United States to meet the needs of naval and merchant ship construction in time of war or national emergency. Based on the results of the study, the Commission shall make such specific recommendations, including recommendations for legislative action, action by the executive branch, and action by the private sector, as the Commission considers appropriate to foster and maintain a United States merchant marine capable of meeting national security requirements. The recommendations of the Commission shall be provided in the reports of the Commission due 12 months after the date on which sufficient members of the Commission to constitute a quorum have been appointed and 24 months after such date, under subsection (g).

“(c)(1) The Commission shall be composed of seven members, as follows:

“(A) The Secretary of the Navy (or his delegate), who shall be the chairman of the Commission.

“(B) The Administrator of the Maritime Administration (or his delegate).

“(C) Five members appointed by the President, by and with the advice and consent of the Senate, from among individuals of recognized stature and distinction who by reason of their background, experience, and knowledge in the fields of merchant ship operations, shipbuilding and its supporting industrial base, maritime labor, and defense matters are particularly suited to serve on the Commission.

“(2) A vacancy in the Commission shall be filled in the manner in which the original appointment was made. Appointments may be made under paragraph (1)(C) without regard to section 5311(b) of title 5, United States Code. Members appointed under such paragraph shall be appointed for the life of the Commission.

“(3) Four members of the Commission shall constitute a quorum, but a lesser number may hold hearings. The Commission shall meet at the call of the chairman.

“(d)(1) Members of the Commission appointed under subsection (c)(1)(C) may each be paid at a rate equal to the daily equivalent of the rate of basic pay payable for level IV of the Executive Schedule for each day (including travel time) during which they are engaged in the actual performance of the business of the Commission. Other members of the Commission shall receive no additional pay, allowances, or benefits by reason of their service on the Commission.

“(2) A member of the Commission appointed under subsection (c)(1)(C) (who is not otherwise employed by the Federal Government) shall not be considered to be a Federal employee, except for the purposes of—

“(A) chapter 81 of title 5, United States Code, relating to compensation for work-related injuries; and

“(B) chapter 171 of title 28, United States Code, relating to tort claims.

“(e)(1) The Commission may (without regard to section 5311(b) of title 5, United States Code) appoint an executive director, who shall be paid at a rate not to exceed the rate of basic pay payable for level IV of the Executive Schedule.

“(2) The Commission may appoint such additional staff as it considers appropriate. Such personnel shall be paid at a rate not to exceed the rate of basic pay payable for grade GS–18 of the General Schedule under section 5332 of title 5, United States Code.

“(3) The executive director and staff of the Commission may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the executive branch and may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates.

“(4) The Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code.

“(f)(1) The Secretary of the Navy and the Administrator of the Maritime Administration may detail personnel under their jurisdiction to the Commission to assist the Commission in carrying out its duties under this section.

“(2) The Secretary of the Navy and the Administrator of the Maritime Administration may provide to the Commission such administrative support services as the Commission may require.

“(g) Not later than nine months after the date on which sufficient members of the Commission to constitute a quorum have been appointed and not later than 21 months after such date, the Commission shall submit to the President and to Congress a report containing its findings of fact and its conclusions. Not later than 12 months after such date and not later than 24 months after such date, the Commission, based upon those findings and conclusions, shall prepare a report containing the recommendations of the Commission as specified in subsection (b) and shall submit the report to the President and Congress. Each such report shall be prepared without any prior review or approval by any official of the executive branch (other than the members and staff of the Commission).

“(h) The Commission shall cease to exist 90 days after the date on which the final report of the Commission under subsection (g) is submitted to the President and the Congress.

“(i) There is authorized to be appropriated for fiscal years 1985, 1986, and 1987, a total of $1,500,000 to carry out this section. Any amount appropriated under this subsection shall remain available until 36 months after the date on which sufficient members of the Commission to constitute a quorum have been appointed.”

Section Referred to in Other Sections

This section is referred to in section 1191 of this Appendix.

§1121. Investigations, studies, records, etc.

The Secretary of Transportation is authorized and directed to investigate, determine, and keep current records of—

(a) Suitable ocean routes and lines to foreign ports; vessels and costs of operation

The ocean services, routes, and lines from ports in the United States, or in a Territory, district, or possession thereof, to foreign markets, which are, or may be, determined by the Secretary of Transportation to be essential for the promotion, development, expansion, and maintenance of the foreign commerce of the United States, and in reaching his determination the Secretary of Transportation shall consider and give due weight to the cost of maintaining each of such steamship lines, the probability that any such line cannot be maintained except at a heavy loss disproportionate to the benefit accruing to foreign trade, the number of sailings and types of vessels that should be employed in such lines, and any other facts and conditions that a prudent business man would consider when dealing with his own business, with the added consideration, however, of the intangible benefit the maintenance of any such line may afford to the foreign commerce of the United States, to the national defense, and to other national requirements;

(b) Bulk cargo carrying services

The bulk cargo carrying services that should, for the promotion, development, expansion, and maintenance of the foreign commerce of the United States and for the national defense or other national requirements be provided by United States-flag vessels whether or not operating on particular services, routes, or lines;

(c) Vessels required in proposed routes

The type, size, speed, method of propulsion, and other requirements of the vessels, including express-liner or super-liner vessels, which should be employed in such services or on such routes or lines, and the frequency and regularity of the sailings of such vessels, with a view to furnishing adequate, regular, certain, and permanent service, or which should be employed to provide the bulk cargo carrying services necessary to the promotion, maintenance, and expansion of the foreign commerce of the United States and its national defense or other national requirements whether or not such vessels operate on a particular service, route, or line;

(d) Cost of construction in United States and abroad

The relative cost of construction of comparable vessels in the United States and in foreign countries;

(e) Relative cost of operation under laws of United States and foreign countries

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, rules, and regulations of the United States and under those of the foreign countries whose vessels are substantial competitors of any such American vessel;

(f) Foreign subsidies

The extent and character of the governmental aid and subsidies granted by foreign governments to their merchant marine;

(g) Shipyards

The number, location, and efficiency of the shipyards existing on June 29, 1936, or thereafter built in the United States;

(h) Laws applicable to aircraft

To investigate and determine what provisions of this chapter and other Acts relating to shipping should be made applicable to aircraft engaged in foreign commerce in order to further the policy expressed in this chapter, and to recommend appropriate legislation to this end;

(i) Transportation to foreign ports of cotton, coal, lumber, and cement

The advisability of enactment of suitable legislation authorizing the Secretary of Transportation in an economic or commercial emergency, to aid the farmers and cotton, coal, lumber, and cement producers 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 of Transportation, until such time as the Secretary of Transportation shall deem such special rate reduction and operation unnecessary for the benefit of the American farmers and such producers; and

(j) New designs of vessels; intercoastal and inland water transportation

New designs, new methods of construction, and new types of equipment for vessels; the possibilities of promoting the carrying of American foreign trade in American vessels; and intercoastal and inland water transportation, including their relation to transportation by land and air.

(June 29, 1936, ch. 858, title II, §211, 49 Stat. 1989; Oct. 21, 1970, Pub. L. 91–469, §§4, 5, 35(a), (b), 84 Stat. 1018, 1035; Aug. 6, 1981, Pub. L. 97–31, §12(67), 95 Stat. 159.)

Amendments

1981—Pub. L. 97–31 in introductory text and subsecs. (a) and (i) substituted “Secretary of Transportation” for “Secretary of Commerce” wherever appearing.

1970—Pub. L. 91–469, §35(a), substituted “Secretary of Commerce” for “Commission”, once in introductory par., twice in subsec. (a), and thrice in subsec. (i).

Subsec. (a). Pub. L. 91–469, §§4(1), 35(b), required consideration of the benefit the maintenance of any steamship line may afford to other national requirements and substituted “his” for “its” before “determination”, respectively.

Subsec. (b). Pub. L. 91–469, §4(3), added subsec. (b). Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 91–649, §4(2), (4), (5), redesignated former subsec. (b) as (c), inserted “method of propulsion” after “speed”, and required that the various requirements of the vessels should be employed to provide bulk cargo carrying services, necessary to the promotion, maintenance, and expansion of the foreign commerce of the United States and its national defense or other national requirements whether or not such vessels operate on a particular service, route, or line, respectively. Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 91–469, §4(2), redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 91–469, §§4(2), 5, redesignated former subsec. (d) as (e) and struck out “in particular services, routes, and lines” after “comparable vessels” and substituted “American vessel” for “American service route, or line”, respectively. Former subsec. (e) redesignated (f).

Subsecs. (f) to (j). Pub. L. 91–469, §4(2), redesignated former subsecs. (e) to (i) as (f) to (j), respectively.

Section Referred to in Other Sections

This section is referred to in sections 1125, 1171, 1173, 1204, 1213, 1222 of this Appendix.

§1121–1. Priority loading for vessels engaged in coastwise transportation of coal; exception, report to Congress

Notwithstanding any other provisions of law, any 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 have the priority to load at any such ports ahead of any waiting vessels engaged in the export trade of coal produced in the United States: Provided, That, the Secretary of Transportation may, if he determines that it is in the national interest, eliminate priority loading, as provided herein, at any such port or ports, and to report such action to the Congress within 30 days.

(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.)

Codification

Section was not enacted as part of the Merchant Marine Act, 1936, which comprises this chapter.

Amendments

1986—Pub. L. 99–662 struck out “until June 30, 1987,” after “shall”.

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Secretary of Commerce”.

§1121–2. National Maritime Enhancement Institutes

(a) Designation by Secretary of Transportation

The Secretary of Transportation may designate National Maritime Enhancement Institutes.

(b) Activities

Activities undertaken by such an Institute may include—

(1) conducting research concerning methods for improving 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) Submission of applications

An institution seeking designation as a National Maritime Enhancement Institute shall submit an application under regulations prescribed by the Secretary.

(d) Designation criteria

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 designee for carrying out the activities specified in subsection (b) of this section;

(2) the capability of the designee to provide leadership in making national and regional contributions to the solution of both long-range and immediate problems of the domestic maritime industry;

(3) the existence of an established program of the designee encompassing research and training directed to enhancing maritime industries;

(4) the demonstrated ability of the designee 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; and

(5) the qualification of the designee as a nonprofit institution of higher learning.

(e) Awards

The Secretary may make awards on an equal matching basis to an institute designated under subsection (a) of this section from amounts appropriated. The aggregate annual amount of the Federal share of the awards by the Secretary shall not exceed $500,000.

(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.)

Codification

Section was not enacted as part of the Merchant Marine Act, 1936, which comprises this chapter.

Amendments

1991—Subsec. (e). Pub. L. 102–241 inserted “by the Secretary” before “shall not” and substituted “$500,000” for “$100,000”.

1990—Subsec. (e). Pub. L. 101–595 amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “The Secretary may make research grants, on an equal matching basis, to an institute from amounts appropriated pursuant to section 1(2)(B). The aggregate amount of such grants shall not exceed $100,000.”

§1122. Maritime problems; cooperation with others; cargo carriage; recommendations

The Secretary of Transportation is authorized and directed—

(a) Study of maritime problems

To study all maritime problems arising in the carrying out of the policy set forth in subchapter I of this chapter;

(b) Inducing preferences for American vessels; construction of super-liners

To study, and to cooperate with vessel owners in devising means by which—

(1) the importers and exporters of the United States can be induced to give preference to vessels under United States registry; and

(2) there may be constructed by or with the aid of the United States express-liner or super-liner vessels comparable with those of other nations, especially with a view to their use in national emergency, and the use in connection with or in lieu of such vessels of transoceanic aircraft service;

(c) Collaboration with owners and builders

To 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 accruing from standardized production where practicable and desirable; and

(d) Liaison with other agencies and trade organizations

To establish and maintain liaison with such other boards, commissions, independent establishments, and departments 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 water-borne export and import foreign commerce of the United States, for the purpose of securing preference to vessels of United States registry in the shipment of such commodities.

(e) Repealed. Pub. L. 98–237, §20(a), Mar. 20, 1984, 98 Stat. 88

(f) Development and implementation of new methods of cargo carriage; preferences for cargo containers

To study means and 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 to study the economic and technological aspects of the use of cargo containers as a method of carrying out the declaration of policy set forth in subchapter I of this chapter, and in carrying out the provisions of this subsection and such policy the United States shall not give preference as between carriers upon the basis of length, height, or width of cargo containers or length, height, or width of cargo container cells and this requirement shall be applicable to all existing container vessels and any container vessel to be constructed or rebuilt; and

(g) Recommendations for further legislation

To make recommendations to Congress, from time to time, for such further legislation as he deems necessary better to effectuate the purpose and policy of this chapter.

(June 29, 1936, ch. 858, title II, §212, 49 Stat. 1990; Mar. 16, 1968, Pub. L. 90–268, §1, 82 Stat. 49; Aug. 6, 1981, Pub. L. 97–31, §12(69), 95 Stat. 159; Mar. 20, 1984, Pub. L. 98–237, §20(a), (c), 98 Stat. 88, 90.)

Amendments

1984—Subsec. (e). Pub. L. 98–237, §20(a), struck out subsec. (e) which related to investigation of any and all discriminatory rates, charges, classifications, and practices whereby exporters and shippers of cargo originating in the United States are required by any common carrier by water in foreign trade of United States to pay a higher rate from any United States port to a foreign port than rate charged by such carrier on similar cargo from such foreign port to such United States port, and making of recommendations to Congress of measures by which such discrimination could be corrected. See section 1710 of this Appendix.

Pub. L. 98–237, §20(c), struck out undesignated pars. following subsec. (d), “The Federal Maritime Commission is authorized and directed—” and following subsec. (e), “The Secretary of Transportation, is authorized and directed—”.

1981—Pub. L. 97–31 substituted in provision preceding subsec. (a) “Secretary of Transportation” for “Commission”; inserted, following subsec. (d), “The Federal Maritime Commission is authorized and directed—”; inserted, following subsec. (e), “The Secretary of Transportation, is authorized and directed—”; and substituted, in subsec. (g), “he” for “it”. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

1968—Subsecs. (f), (g). Pub. L. 90–268 added subsec. (f) and redesignated former subsec. (f) as (g).

Savings Provision

Amendment by Pub. L. 98–237 not to affect suits filed before Mar. 20, 1984, or claims arising out of conduct engaged in before Mar. 20, 1984, and filed within 1 year after that date; and agreements, contracts, modifications, and exemptions approved or licenses issued by the Federal Maritime Commission prior to Mar. 20, 1984, to continue as if approved or issued under chapter 36 (§1701 et seq.) of this Appendix, but new agreements, contracts, and modifications to existing, pending, or new contracts or agreements to be considered under chapter 36 of this Appendix, see section 1719 of this Appendix.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

§1122a. Vessel utilization and performance reports; filing; civil penalty; lien upon vessel; remission or mitigation of penalty

The operator of a vessel in waterborne foreign commerce of the United States shall file at such times and in such manner as the Secretary of Transportation may prescribe by regulations, such report, account, record, or memorandum relating to the utilization and performance of such vessel in commerce of the United States, as the Secretary may determine to be necessary or desirable in order to carry out the purposes and provisions of this chapter. Such report, account, record, or memorandum shall be signed and verified in accordance with regulations prescribed by the Secretary. An operator who does not file the report, account, record, or memorandum as required by this section and the regulations issued hereunder, shall be liable to the United States in a penalty of $50 for each day of such violation. The amount of any penalty imposed for any violation of this section upon the operator of any vessel shall constitute a lien upon the vessel involved in the violation, and such vessel may be libeled therefor in the district court of the United States for the district in which it may be found. The Secretary of Transportation may, in his discretion, remit or mitigate any penalty imposed under this section on such terms as he may deem proper.

(June 29, 1936, ch. 858, title II, §212(A), as added June 25, 1956, ch. 437, 70 Stat. 332; amended Aug. 6, 1981, Pub. L. 97–31, §12(70), 95 Stat. 159.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Secretary of Commerce” wherever appearing.

Federal Rules of Civil Procedure

Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure.

Section Referred to in Other Sections

This section is referred to in title 46 section 2306.

§1122b. Mobile trade fairs

(a) Use of United States flag vessels and aircraft insofar as practicable

The Secretary of Commerce shall encourage and promote the development and use of mobile trade fairs which are 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 operator or operators of the mobile trade fairs use insofar as practicable United States flag vessels and aircraft in the transportation of their exhibits.

(b) Technical and financial assistance; exceptions

The Secretary of Commerce is authorized to provide to the operator or operators of such mobile trade fairs technical assistance and support as well as financial assistance for the purpose of defraying certain expenses incurred abroad (other than the cost of transportation on foreign-flag vessels and aircraft), when the Secretary determines that such operations provide an economical and effective means of promoting export sales.

(c) Use of foreign currencies

In addition to any amounts appropriated to carry out trade promotion activities, the President may use foreign currencies owned by or owed to the United States to carry out this section.

(d) Report to Congress

The Secretary of Commerce shall submit annually to the Congress a report on his activities under this chapter.

(June 29, 1936, ch. 858, title II, §212(B), as added Oct. 18, 1962, Pub. L. 87–839, §1, 76 Stat. 1074; amended July 7, 1965, Pub. L. 89–66, 79 Stat. 211; July 27, 1968, Pub. L. 90–434, 82 Stat. 449; Aug. 23, 1988, Pub. L. 100–418, title X, §10003(a), 102 Stat. 1572.)

Amendments

1988—Subsec. (c). Pub. L. 100–418 amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “There is authorized to be appropriated not to exceed $500,000 per fiscal year for each of the six fiscal years during the period beginning July 1, 1962, and ending June 30, 1968, and not to exceed $166,000 for the fiscal year ending June 30, 1969. In addition to such appropriated sums, the President shall make maximum use of foreign currencies owned by or owed to the United States to carry out the purposes of this section.”

1968—Subsec. (a). Pub. L. 90–434 substituted “use insofar as practicable” for “exclusively use”.

Subsec. (b). Pub. L. 90–434 inserted “(other than the cost of transportation on foreign-flag vessels and aircraft),” after “expenses incurred abroad”.

Subsec. (c). Pub. L. 90–434 authorized appropriation of not to exceed $166,000 for the fiscal year ending June 30, 1969.

1965—Subsec. (c). Pub. L. 89–66 substituted “six” and “June 30, 1968” for “three” and “June 30, 1965”, respectively.

§1123. Obsolete tonnage; tramp service; relative costs at yards

The Secretary of Transportation shall make studies of and make reports to Congress on—

(a) Removal of obsolete tonnage

The scrapping or removal from service of old or obsolete merchant tonnage owned by the United States or in use in the merchant marine;

(b) Tramp shipping; participation in by Americans

Tramp shipping service and the advisability of citizens of the United States participating in such service with vessels under United States registry.

(c) Relative cost of construction at different yards; equalization

The relative cost of construction or reconditioning of comparable ocean vessels in shipyards in the various coastal districts of the United States, together with recommendations as to how such shipyards may compete for work on an equalized basis; reports under this paragraph shall be made annually on the first day of October of each year.

(June 29, 1936, ch. 858, title II, §213, 49 Stat. 1991; Oct. 24, 1962, Pub. L. 87–877, §2(c), (d), 76 Stat. 1201; Apr. 21, 1976, Pub. L. 94–273, §27, 90 Stat. 380; Aug. 6, 1981, Pub. L. 97–31, §12(71), 95 Stat. 159.)

Amendments

1981—Pub. L. 97–31 substituted in provision preceding subsec. (a) “Secretary of Transportation” for “Commission”. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

1976—Subsec. (c). Pub. L. 94–273 substituted “October” for “July”.

1962—Pub. L. 87–877 substituted “reports to Congress” for “a report to Congress as soon as practicable on”, in text preceding subsec. (a), and inserted “; reports under this paragraph shall be made annually on the first day of July of each year” in subsec. (c).

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix.

§1124. Witnesses

(a) Summoning; oaths; production of books and papers; fees

For the purpose of any investigation which, in the opinion of the Secretary of Transportation, is necessary and proper in carrying out this chapter, the Secretary may subpoena witnesses, administer oaths and affirmations, take evidence, and require the production of books, papers, or other documents that are relevant to the matter under investigation. The attendance of witnesses and the production of books, papers, or other documents may be required from any place in the United States or any territory, district, or possession thereof at any designated place of hearing. Witnesses summoned before the Secretary shall be paid the same fees and mileage that are paid witnesses in the courts of the United States.

(b) Refusal to obey subpena; court orders; contempt

Upon failure of any person to obey a subpoena issued by the Secretary, the Secretary may invoke the aid of any district court of the United States within the jurisdiction in which the person resides or carries on business in requiring the attendance and testimony of witnesses and the production of books, papers, or other documents. Any such court may issue an order requiring the person to appear before the Secretary, or an employee designated by the Secretary, there to produce books, papers, or other documents, if so ordered, or to give testimony relevant to the matter under investigation. A failure to obey an order of the court may be punished by the court as a contempt thereof. Process in such a case may be served in the judicial district in which the person resides or may be found.

(June 29, 1936, ch. 858, title II, §214, 49 Stat. 1991; June 23, 1938, ch. 600, §3, 52 Stat. 954; Oct. 15, 1970, Pub. L. 91–452, title II, §241, 84 Stat. 930; Aug. 6, 1981, Pub. L. 97–31, §12(72), 95 Stat. 159; Mar. 20, 1984, Pub. L. 98–237, §20(a), 98 Stat. 89; Oct. 30, 1984, Pub. L. 98–595, §2, 98 Stat. 3132.)

Amendments

1984—Pub. L. 98–595 amended section generally, striking out in subsec. (a) “the Federal Maritime Commission or” before “the Secretary of Transportation”, “any member of the Commission, or any officer or employee thereof designated by it or” before “the Secretary”, and “the Commission or” before “the Secretary shall be paid”, and in subsec. (b), striking out “the Commission or” before “the Secretary,” substituting “the Secretary” for “it or he”, and striking out “the Commission or” before “the Secretary” in two places.

Pub. L. 98–237 provided that this section is repealed wherever it applies to the Federal Maritime Commission, any member of the Commission, or any member, officer, or employee designated by the Commission. See Amendment note above for Pub. L. 98–595.

1981—Subsec. (a). Pub. L. 97–31, §12(72)(A)–(C), substituted “Federal Maritime Commission or the Secretary of Transportation” for “Commission”; inserted “or the Secretary,” after “designated by it,” and “Commission”. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

Subsec. (b). Pub. L. 97–31, §12(72)(C), (D), inserted “or the Secretary,” after “Commission” in three places and substituted “it or he” for “it”. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

1970—Subsec. (c). Pub. L. 91–452 struck out subsec. (c) which related to the immunity from prosecution of any person compelled to testify or produce evidence, document or otherwise, after claiming his privilege against self-incrimination.

1938—Subsec. (a). Act June 23, 1938, struck out “within the Federal judicial district in which the witness resides” after “place of hearing”.

Effective Date of 1970 Amendment

Amendment by Pub. L. 91–452 effective on sixtieth day following Oct. 15, 1970, and not to affect any immunity to which any individual is entitled under this section by reason of any testimony given before sixtieth day following Oct. 15, 1970, see section 260 of Pub. L. 91–452, set out as an Effective Date; Savings Provision note under section 6001 of Title 18, Crimes and Criminal Procedure.

Savings Provision

Amendment by Pub. L. 98–237 not to affect suits filed before Mar. 20, 1984, or claims arising out of conduct engaged in before Mar. 20, 1984, and filed within 1 year after that date; and agreements, contracts, modifications, and exemptions approved or licenses issued by the Federal Maritime Commission prior to Mar. 20, 1984, to continue as if approved or issued under chapter 36 (§1701 et seq.) of this Appendix, but new agreements, contracts, and modifications to existing, pending, or new contracts or agreements to be considered under chapter 36 of this Appendix, see section 1719 of this Appendix.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Federal Rules of Civil Procedure

Subpoena, see rule 45, Title 28, Appendix, Judiciary and Judicial Procedure.

Cross References

Immunity of witnesses, see section 6001 et seq. of Title 18, Crimes and Criminal Procedure.

§1125. Acquisition of vessels

The Secretary of Transportation is authorized to acquire by purchase or otherwise such vessels constructed in the United States as he may deem necessary to establish, maintain, improve, or effect replacements upon any service, route, or line in the foreign commerce of the United States determined to be essential under section 1121 of this Appendix, and to pay for the same out of his construction fund: Provided, That the price paid therefor shall be based upon a fair and reasonable valuation, but it shall not exceed by more than 5 per centum the cost of such 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 thereon for reconditioning less depreciation based upon a twenty-five year life expectancy of the vessel. No such vessel shall be acquired by the Secretary of Transportation unless the Secretary of the Navy has certified to the Secretary of Transportation that such vessel is suitable for economical and speedy conversion into a naval or military auxiliary, or otherwise suitable for the use of the United States in time of war or national emergency. Every vessel acquired under authority of this section that is not documented under the laws of the United States at the time of its acquisition shall be so documented as soon as practicable.

(June 29, 1936, ch. 858, title II, §215, as added June 23, 1938, ch. 600, §4, 52 Stat. 954; amended June 12, 1960, Pub. L. 86–518, §1, 74 Stat. 216; Aug. 6, 1981, Pub. L. 97–31, §12(73), 95 Stat. 160.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” wherever appearing, “his” for “it”, and “his” for “its” in first sentence. In first sentence after “United States as”, “he” (rather than “his”) was substituted for “it” as the probable intent of Congress. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

1960—Pub. L. 86–518 substituted “twenty-five year life expectancy” for “twenty-year life expectancy”.

Effective Date of 1960 Amendment

Section 8(a) of Pub. L. 86–518 provided that: “The amendments made by this Act [amending this section, sections 1152, 1153, 1156, 1157, 1159, 1160, 1175, 1177, 1181, 1195, 1204, 1274, and 1276 of this Appendix, section 1276a of former Title 46, Shipping, and section 1737 of Title 50, Appendix, War and National Defense] 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 [this chapter], existing immediately before the date of enactment of this Act [June 12, 1960] shall continue in effect.”

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix.

Rate of Depreciation for Vessels Delivered by Shipbuilder on or After January 1, 1946, and Before January 1, 1960

Section 8(b) of Pub. L. 86–518 provided that with regard to vessels delivered by the shipbuilder on or after Jan. 1, 1946, and before Jan. 1, 1960, depreciation under this section and sections 1152(g), 1157, 1160(d), 1177(b), 1181(c), 1195, and 1204 of this Appendix and section 1276a(4) of former Title 46, Shipping, was generally to be taken for the period prior to Jan. 1, 1960, at the rate provided by this chapter, as it existed immediately prior to the amendments made by Pub. L. 86–518, and for the period after Jan. 1, 1960, such depreciation was generally to be taken on the basis of the remaining years of a useful life of twenty-five years unless the vessel was reconstructed or reconditioned in which event such depreciation, from the time of such reconstruction or reconditioning, was generally to be taken on the basis of the remaining years of a useful life of the vessel determined jointly by the Secretary of Commerce and the Secretary of the Treasury.

Revision of Contracts, Commitments To Insure Mortgages, Mortgages, and Mortgage Insurance Contracts Entered Into Prior to June 12, 1960; Amendment of Contract Dealing With Vessels Having Extended Life

Section 8(c) of Pub. L. 86–518, as amended by Pub. L. 88–225, Dec. 23, 1963, 77 Stat. 469, provided that any contract, commitment to insure a mortgage under subchapter XI of this chapter, or mortgage, between any person and the United States or any agency thereof, or any mortgage insurance contract under subchapter XI of this chapter, which was entered into prior to June 12, 1960 and which would have been affected if the provisions of the amendments made by Pub. L. 86–518 [see Effective Date of 1960 Amendment note above] were applicable thereto, could, at the request of such person agreed to by any third parties in interest, or at the request of the mortgagor agreed to by the mortgagee in the case of such a mortgage insurance contract, made within one hundred and eighty days after June 12, 1960 to the agency of the United States holding such contract, be revised to be in accordance with the law as amended by Pub. L. 86–518, with respect to such of the vessels covered thereby as were designated by the applicant, that any such revision was to provide with respect to the amendments to this section and sections 1152(g), 1157, 1160(d), 1177(b), 1181(c), 1195, and 1204 of this Appendix and section 1276a(4) of former Title 46, Shipping, that depreciation for the period prior to Jan. 1, 1960, was to be taken at the rate provided by the Merchant Marine Act, 1936, act June 29, 1936, ch. 858, 49 Stat. 1985, prior to the amendments made by Pub. L. 86–518, and that the remaining depreciation was to be taken for the period beginning Jan. 1, 1960, on the basis of the remaining years of a useful life of twenty-five years, unless the vessel was reconstructed or reconditioned, in which event such depreciation from the time of such reconstruction or reconditioning was to be taken on the basis of the remaining years of a useful life of the vessel determined jointly by the Secretary of Commerce and the Secretary of the Treasury, that any such revision was to provide with respect to any remaining unpaid debts that such unpaid debts were to be paid in equal annual installments over the remaining years of a useful life of twenty-five years, and that provisions in such contracts affecting vessels covered by Pub. L. 86–518 providing for refund of construction-differential subsidy for domestic operations under section 1156 of this Appendix and costs of national defense features for commercial use were to be amended so that for such refund payments made for the period after Dec. 31, 1959, the base upon which such refund payments were computed annually thereafter were to be the undepreciated amount of subsidy or the national defense feature, as the case may be, as at Dec. 31, 1959, divided by the years of life of the vessels as provided under Pub. L. 86–518, remaining after Dec. 31, 1959.

Commercial Expectancy or Period of Depreciation of Tankers and Other Liquid Bulk Carriers

Section 9 of Pub. L. 86–518 provided that: “Nothing in any amendment made by this Act [see Effective Date of 1960 Amendment note above] shall operate or be interpreted to change from twenty to twenty-five years the provisions of the Merchant Marine Act, 1936, as amended [this chapter], relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier.”

Section Referred to in Other Sections

This section is referred to in section 1152 of this Appendix.

§1125a. Construction, repair, etc., of vessels for Government agencies

The Secretary of Transportation is authorized to construct, reconstruct, repair, equip, and outfit, by contract or otherwise, vessels or parts thereof, for any other department or agency of the Government, to the extent that such other department or agency is authorized by law to do so for its own account, and any obligations heretofore or hereafter incurred by the Secretary for any of the aforesaid purposes shall not diminish or otherwise affect any contract authorization granted to the Secretary: Provided, The obligations incurred or the expenditures made are charged against and, to the amount of such obligation or expenditure, diminish the existing appropriation or contract authorization of such department or agency.

(Feb. 6, 1941, ch. 5, §4, 55 Stat. 6; Aug. 6, 1981, Pub. L. 97–31, §12(74), 95 Stat. 160.)

Codification

Section was not enacted as part of the Merchant Marine Act, 1936, which comprises this chapter.

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” the first time it appeared and “Secretary” for “Commission” the next two times it appeared. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section 1111 of this Appendix.

§1126–1. Training of future naval officers under Naval Reserve Officer Training Corps programs at merchant marine academies for promotion of maximum integration of naval and merchant marine seapower of Nation

(a) It is the policy of the United States that the United States Navy and the Merchant Marine of the United States work closely together to promote the maximum integration of the total seapower forces of the Nation. In furtherance of this policy, it is necessary and desirable that special steps be taken to assure that Naval Reserve Officer Training Corps programs (for training future naval officers) be maintained at Federal and State merchant marine academies.

(b) It is the sense of the Congress that the Secretary of the Navy should work with the Maritime Administrator and the administrators of the several merchant marine academies to assure that the training available at these academies is consistent with Navy standards and needs.

(Pub. L. 94–361, title VI, §603, July 14, 1976, 90 Stat. 929; Pub. L. 97–31, §12(76), Aug. 6, 1981, 95 Stat. 160.)

Codification

Section was enacted as part of Pub. L. 94–361, popularly known as the Department of Defense Appropriation Authorization Act, 1977, and not as part of the Merchant Marine Act, 1936, which comprises this chapter.

Amendments

1981—Subsec. (b). Pub. L. 97–31 substituted “Maritime Administrator” for “Assistant Secretary of Commerce for Maritime Affairs”.

SUBCHAPTER III—AMERICAN SEAMEN

§1131. Manning and wage scales; subsidy contracts

(a) Investigation of wages and working conditions; establishment of wage and manning scales; incorporation in subsidy contracts

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 subchapters VI and VII of this chapter 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 operating-differential subsidy previously authorized for the vessel.

(b) Subsidy contracts; provisions relative to officers and crew

Every contract executed under authority of subchapters VI and VII or this chapter shall require—

(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 Naval 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 Naval Reserve.

(June 29, 1936, ch. 858, title III, §301, 49 Stat. 1992; June 23, 1938, ch. 600, §§5, 6, 52 Stat. 954, 955; 1946 Reorg. Plan No. 3, §§101–104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097; Aug. 6, 1981, Pub. L. 97–31, §12(82), 95 Stat. 160.)

Amendments

1981—Subsec. (a). Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in five places. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

Subsec. (b)(2). Pub. L. 97–31 substituted “Secretary of Transportation” for “Commission” in three places. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note set out below.

1938—Subsec. (a). Act June 23, 1938, §5, substituted “minimum working conditions” for “reasonable working conditions,” struck out provisions which required a formal complaint before any change in scales or working conditions, and permitted representatives of organizations certified as the proper collective bargaining agencies to represent employees at hearings.

Subsec. (b). Act June 23, 1938, §6, struck out provisions which permitted complaints and recommendations to be made to the Coast Guard or the Department of Labor, and which required licensed officers to take their meals in the main dining salon of the vessel.

Transfer of Functions

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this Appendix.

Coast Guard transferred to Department of Transportation, and functions, powers, and duties relating to Coast Guard of Secretary of the Treasury and of other officers and offices of Department of the Treasury transferred to Secretary of Transportation by Pub. L. 89–670, §6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. L. 89–670, however, provided that notwithstanding such transfer of functions, Coast Guard shall operate as part of Navy in time of war or when President directs as provided in section 3 of Title 14, Coast Guard. See section 108 of Title 49, Transportation.

For transfer of functions of other officers, employees, and agencies of Department of the Treasury, with certain exceptions, to Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Functions of Coast Guard, and Commandant of Coast Guard, excepted from transfer when Coast Guard is operating as part of Navy under sections 1 and 3 of Title 14.

Phrase “or the Coast Guard” inserted in subsec. (b)(3) on authority of Reorg. Plan No. 3 of 1946, §§101–104, set out as a note preceding section 3 of this Appendix.

SUBCHAPTER V—CONSTRUCTION-DIFFERENTIAL SUBSIDY

Subchapter Referred to in Other Sections

This subchapter is referred to in sections 1161, 1191, 1193, 1204, 1212, 1228, 1244, 1274 of this Appendix.

§1151. Subsidy authorized for vessels to be operated in foreign trade

(a) Application for subsidy for construction; conditions precedent to granting

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 chapter. 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) Submission of plans to Navy Department; certification of approval

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 subsection, he shall certify such approval to the Secretary of Transportation.

(c) Application for subsidy for reconstruction or reconditioning; conditions precedent to granting; contracts

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 chapter, 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 subchapter 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 1114(b) of this Appendix; 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 chapter.

(June 29, 1936, ch. 858, title V, §501, 49 Stat. 1995; June 23, 1938, ch. 600, §8, 52 Stat. 955; July 17, 1952, ch. 939, §§1, 2, 66 Stat. 760, 761; Oct. 21, 1970, Pub. L. 91–469, §§6, 35(a), (c), (d), 84 Stat. 1019, 1035; Dec. 31, 1970, Pub. L. 91–603, §4(a), 84 Stat. 1675; Aug. 6, 1981, Pub. L. 97–31, §12(84), 95 Stat. 161.)

Amendments

1981—Pub. L. 97–31 substituted “Secretary of Transportation” for “Secretary of Commerce” wherever appearing.

1970—Pub. L. 91–469, §35(a), substituted “Secretary of Commerce” for “Commission”, twice in subsecs. (a) and (b) and five times in subsec. (c).

Subsec. (a). Pub. L. 91–603 substituted “for the operation and maintenance of” for “to enable it to operate and maintain” in cl. (2).

Pub. L. 91–469, §§6(1), 35(c), substituted “Any proposed ship purchaser who is a citizen of the United States or any shipyard of the United States” for “Any citizen of the United States”, inserted in subd. (2) “if the applicant is the proposed ship purchaser,” struck out of cl. (3) “to replace wornout or obsolete tonnage with new and modern ships, or otherwise” after “reasonably calculated”, and authorized the Secretary of Commerce to give preferred consideration to applications that will tend to reduce construction-differential subsidies and that propose the construction of ships of high transport capability and productivity; and substituted “he” for “it” before “determines”, respectively.

Subsec. (c). Pub. L. 91–469, §§6(2), 35(d), inserted “or any shipyard of the United States” after “Any citizen of the United States” and substituted “his” for “its” before “discretion”, respectively.

1952—Subsecs. (a), (c). Act July 17, 1952, §§1, 2, struck out requirements as to essentiality of the service, route, or line to be served by the vessel and provided that the lawful or proper use of the vessel may not be restricted.

1938—Subsec. (c). Act June 23, 1938, inserted reference to section 1114(b).

Commission on American Shipbuilding

Section 41 of Pub. L. 91–469 established a Commission on American Shipbuilding, provided for the appointment and compensation of an Executive Director of the commission and other personnel, empowered the commission to study American shipbuilding with a view toward increased productivity and reduced costs, and to make a report to the President and Congress no later than three years after Oct. 21, 1970 of the commission's findings and recommendations, and provided that the commission was to terminate sixty days after filing its report.

Section Referred to in Other Sections

This section is referred to in sections 1152, 1173 of this Appendix.

§1152. Construction of vessels; bids; subsidies

(a) Approval of bids; contract with bidder; acceptance of negotiated price; shipyard records, availability; contract with applicant or qualified citizen for purchase of vessel

If the Secretary of the Navy certifies his approval under section 1151(b) of this Appendix, 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 1155 of this Appendix 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 possesses 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 chapter, of building such vessel in a foreign shipyard.

(b) Basis for fixing subsidy; cost of construction in foreign yards; annual recomputation and publication of foreign cost; limitation on construction differential; report on American shipbuilding industry

The amount of 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 1155 of this Appendix) 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) Terms of sale of vessel to purchaser

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 Secretary 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) Construction in navy yards; sales to citizens; terms

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) of this section, such sale to be in accordance with all the provisions of this subchapter.

(f) Survey of shipbuilding capability; correction of inadequacies; reimbursement of certain vessel construction and delivery expenses

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 chapter, 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 this subchapter and subchapter VII of this chapter, 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 chapter, 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 chapter, 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 accepted, 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 this subchapter, except section 1159 of this Appendix) 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 chapter. If the vessel is constructed under section 1159 of this Appendix 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) Sale of vessels acquired by Secretary

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 1125 of this Appendix, 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) of this section, such sale to be in accordance with all the provisions of this subchapter. Such vessel shall thereupon be eligible for an operating-differential subsidy under subchapter VI of this chapter, notwithstanding the provisions of section 1171(a)(1), and section 1180(1) of this Appendix, or any other provision of law.

(h) Installation or removal of national defense features; title to such features

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 1744(a) of the Appendix to title 50, (2) which is requisitioned, purchased, or chartered under section 1242 of this Appendix, (3) which serves as security for the guarantee of an obligation by the Secretary of Transportation under subchapter XI of this chapter, 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 subchapter.

(i) Plans, specifications, and proposals for national defense features; certification of approval

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.

(June 29, 1936, ch. 858, title V, §502, 49 Stat. 1996; 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; June 12, 1960, Pub. L. 86–518, §§1, 2, 74 Stat. 216; July 7, 1960, Pub. L. 86–607, §1, 74 Stat. 362; Oct. 24, 1962, Pub. L. 87–877, §§1, 2(a), (e), (f), 76 Stat. 1200, 1201; July 11, 1964, Pub. L. 88–370, 78 Stat. 313; Aug. 10, 1964, Pub. L. 88–410, §1, 78 Stat. 385; Aug. 14, 1965, Pub. L. 89–127, 79 Stat. 519; Sept. 19, 1966, Pub. L. 89–589, 80 Stat. 811; Oct. 12, 1968, Pub. L. 90–572, 82 Stat. 1004; July 8, 1969, Pub. L. 91–40, 83 Stat. 44; Oct. 21, 1970, Pub. L. 91–469, §§7, 35(a), (e)–(g), 84 Stat. 1019, 1035, 1036; Dec. 31, 1970, Pub. L. 91–603, §4(b), 84 Stat. 1675; July 10, 1973, Pub. L. 93–71, 87 Stat. 169; July 31, 1976, Pub. L. 94–372, §§2, 3, 90 Stat. 1042; Mar. 17, 1980, Pub. L. 96–210, 94 Stat. 100; Oct. 7, 1980, Pub. L. 96–387, §3, 94 Stat. 1545; Aug. 6, 1981, Pub. L. 97–31, §12(84), (85), 95 Stat. 161.)

Amendments

1981—Subsecs. (a), (b). Pub. L. 97–31, §12(84), substituted “Secretary of Transportation” for “Secretary of Commerce” wherever appearing.

Subsec. (c). Pub. L. 97–31, §12(84), (85), substituted “Secretary of Transportation” for “Secretary of Commerce” wherever appearing, and “Secretary of Transportation's” for “Secretary of Commerce's”.

Subsecs. (e) to (i). Pub. L. 97–31, §12(84), substituted “Secretary of Transportation” for “Secretary of Commerce” wherever appearing.

1980—Subsec. (a). Pub. L. 96–210 struck out “, at any time prior to June 30, 1979,” before “to accept a price for”.

Subsecs. (h), (i). Pub. L. 96–387 added subsecs. (h) and (i).

1976—Subsec. (a). Pub. L. 94–372, §2, in third sentence, substituted “at any time prior to June 30, 1979” for “at any time prior to June 30, 1976”, struck out former par. (i) relating to a negotiated price resulting in a construction-differential subsidy equal to or less than 45%, 43%, 41%, 39%, 37% and 35% for fiscal years 1971, 1972, 1973, 1974, 1975 and 1976, respectively, and redesignated former pars. (ii), (iii), and (iv) as (1), (2), and (3), respectively.

Subsec. (b). Pub. L. 94–372, §3, substituted provisions limiting the construction differential to 50% (excluding costs for national defense features), and allowing the Secretary, where such differential is exceeded, to contract with any bidder (notwithstanding section 1155) to reduce the differential to within such percentage for provisions limiting the differential to 55% except for passenger vessels having characteristics set forth in section 1153, which shall be 60%, limiting the differential after June 30, 1970 to 50%, permitting the Secretary to negotiate and contract with any bidder, regardless of section 1155 if in the years 1972, 1973, 1974, 1975 and 1976 a specified percentage is exceeded, prohibiting contracts commencing in 1972, where such differential exceeds such limits unless consideration has been given to the possibility that the commitment to ship construction programs may not be continued under existing limits, and requiring notification to the Commission on American Shipbuilding if the Secretary finds it necessary to enter into such contracts.

1973—Subsec. (a). Pub. L. 93–71 in third sentence, substituted “June 30, 1976” for “June 30, 1973” and limited vessel construction subsidy to 39 per centum in fiscal 1974, 37 per centum in fiscal 1975, and 35 per centum in fiscal 1976.

1970—Pub. L. 91–469, §35(a), substituted “Secretary of Commerce” for “Commission”, six times in subsec. (a), four times in subsec. (c), five times in subsec. (e), four times in subsec. (f), and four times in subsec. (g).

Subsec. (a). Pub. L. 91–603 substituted “for the operation and maintenance of” for “to enable it to operate and maintain”.

Pub. L. 91–469, §§7(1), 35(e), struck out in first sentence “, on behalf of the applicant,” after “may secure”, substituted in second sentence “proposed ship purchaser, the Secretary of Commerce” for “applicant, the Commission”, inserted conditions precedent to acceptance of negotiated price for ship construction in fiscal years 1971, 1972, and 1973, including availability of shipyard records in connection therewith, substituted in last sentence “for the sale” for “with the applicant for the purchase by him” before “of such vessel”, and authorized sale of vessel upon its completion to the applicant if he is the proposed ship purchaser and if not to another citizen, if the Secretary determines that such citizen possesses the necessary qualifications to enable it to operate and maintain the vessel; and substituted “he” for “it” before “may secure”, respectively.

Subsec. (b). Pub. L. 91–469, §7(2), provided for recomputation of estimated foreign cost annually, publication of notice to compute or recompute such estimated foreign cost, offer of opportunity to interested persons to file written statements, consideration of relevant matter so filed, explanation of basis of determination, prohibition commencing with fiscal year 1972 of construction contracts requiring construction-differential in excess of prescribed percentages unless there is no likelihood of attaining the percentages and the commitment to the ship construction program may not be continued, notice to Commission on American Shipbuilding of execution of such a contract, and submission of a Commission report on the American shipbuilding industry within six months of the notice, substituted “may equal” for “shall equal”, “construction of that type vessel” for “construction of the proposed vessel”, “exceeds the following percentages: in fiscal year 1971, 45 per centum; in fiscal year 1972, 43 per centum; in fiscal year 1973, 41 per centum; in fiscal year 1974, 39 per centum; in fiscal year 1975, 37 per centum; in fiscal year 1976 and thereafter, 35 per centum” for “in any case exceeds the foregoing applicable percentage of such cost”, and “with such bidder, notwithstanding the provisions of the first sentence of section 1155 of this Appendix with respect to competitive bidding,” for “on behalf of the applicant”, and inserted “with any bidder, whether or not such bidder is the lowest bidder,” after “the Secretary may negotiate” and “, or as close thereto as possible” before “or less”.

Subsec. (c). Pub. L. 91–469, §§7(3), 35(f), inserted “of sale” after introductory phrase “In such contract”, in revising interest rate substituted provision for a rate not less than 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 an administrative cost allowance for prior rate of 31/2 per centum per annum, substituted in last sentence “rate per annum applicable to payments that are chargeable to the purchaser's portion of the price of the vessel” for “rate of 31/2 per centum per annum”, “purchaser” for “applicant” in six places, “purchaser's portion of the price” for “applicant's purchase price”, and “purchaser's” for “applicant's”; and substituted “Secretary of Commerce's” for “Commission's”, respectively.

Subsec. (e). Pub. L. 91–469, §§7(4), 35(g), substituted “a citizen of the United States” for “the applicant” in first sentence and for “an applicant” in third sentence and “his” for “its” in second sentence, respectively.

Subsec. (f). Pub. L. 91–469, §7(5), in first par., substituted “this subchapter and subchapter VII of this chapter” for “subchapter VII of this chapter and section 1159 of this Appendix, and the Federal Maritime Board, in connection with ship construction, reconstruction, or reconditioning under this subchapter (except section 1159 of this Appendix),” and “in such manner as he may determine” for “in such manner as it may be determined” in second sentence; and in second par., substituted “purchaser” for “applicant” in six places and “United States port in an essential service” for “United States port on any essential service of the operator” in fourth sentence.

Subsec. (g). Pub. L. 91–469, §7(6), substituted “application” and “any citizen of the United States” for “agreement” and “an applicant under this subchapter” in first sentence.

1969—Subsec. (b). Pub. L. 91–40 substituted “June 30, 1970” for “June 30, 1969”.

1968—Subsec. (b). Pub. L. 90–572 substituted “June 30, 1969” for “June 30, 1968”.

1966—Subsec. (b). Pub. L. 89–589 substituted “June 30, 1968” for “June 30, 1966”.

1965—Subsec. (b). Pub. L. 89–127 substituted “June 30, 1966” for “June 30, 1965”.

1964—Subsec. (b). Pub. L. 88–370 substituted “June 30, 1965” for “June 30, 1964”.

Subsec. (f). Pub. L. 88–410 provided for reimbursement of expenses incurred during construction and the delivery voyage of a vessel, if as a result of allocation under this subsection, they are in excess of the estimated expenses that would have been incurred if the vessel had been constructed by the lowest responsible bidder, less one-half of any gross income allocable to the delivery voyage, minus one-half the extra expenses incurred to produce such income, and that such reimbursement shall not be part of the construction-differential subsidy, that no interest be paid on any refund authorized, that if the vessel is constructed under section 1159 the price of the vessel is to be reduced by such excess expenses less such gross income, calculated as above, obtained on the delivery voyage, that if the vessel is not to receive the operating-differential subsidy the delivery voyage shall be deemed terminated at the port where the vessel begins loading, and if it does receive the subsidy, when the vessel begins loading at a United States port on any essential service of the operator, but in either case there is to be no compensation greater than the expenses that would have been incurred in delivering the vessel from the shipyard at which it was built to the one of the lowest bidder, that if the allocation results in a saving of expenses for the applicant, the applicant shall pay an equal amount to the Secretary, and if the vessel was built with the subsidy, such payment shall not be considered a reduction of the subsidy.

1962—Subsec. (b). Pub. L. 87–877, §1, among other changes, substituted references to the Secretary, for references to the Federal Maritime Board, wherever appearing, and provided that in the reconstruction or reconditioning of a passenger vessel having the characteristics set forth in section 1153 of this Appendix, the construction differential shall not exceed 60 per centum of the cost, excluding national defense features, however, after June 30, 1964, the construction differential approved by the Secretary for any vessel shall not exceed 50 per centum of such cost.

Subsec. (d). Pub. L. 87–877, §2(a), repealed subsec. (d) which provided for giving a preference to Pacific coast bidders in obtaining a subsidy and specified the conditions to be met therefor.

Subsec. (f). Pub. L. 87–877, §2(e), (f), substituted “at least once each year” for “periodically”, “existing or impending inadequacy” for “existing inadequacy”, and struck out “, with the approval of the President,” before “allocate such construction”.

1960—Subsec. (b). Pub. L. 86–607, §1(1), increased the limitation on construction differential from 50 to 55 per centum of the construction cost of a vessel and provided for such percentage limitation in lieu of former 331/3 per centum of construction cost, increased to 50 per centum on affirmative vote of two Board members.

Subsec. (c). Pub. L. 86–518, §1, substituted “twenty-five” for “twenty” in two places.

Subsec. (d). Pub. L. 86–607, §1(2), increased the limitation on construction-differential from 50 to 55 per centum of the construction cost of a vessel.

Subsec. (g). Pub. L. 86–518, §2, substituted “at the rate of 4 per centum per annum” for “based on a twenty-year life expectancy”.

1956—Subsec. (f). Act July 26, 1956, substituted provisions that required Secretary of Commerce, with advice of Secretary of the Navy, to make periodic survey of privately owned shipyards to determine adequacy for providing mobilization base, and that any inadequacies would be corrected by Secretary of Commerce or Federal Maritime Board with the approval of the President by allocating work to such yards, for former provisions allowing periodic survey by the Federal Maritime Board of both Navy and privately owned shipyards.

1939—Subsec. (b). Act Aug. 4, 1939, substituted “a foreign shipbuilding center which is deemed by the Commission 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” for “a principal foreign shipbuilding center which may reasonably be availed of by the principal foreign competitors in the service in which the vessel is to be operated, and which is deemed by the Commission to furnish a fair and representative example for the determination of the estimated cost of construction in foreign countries of vessels of the type proposed to be constructed”.

1938—Subsec. (a). Act June 23, 1938, §9, substituted “of the contract price of the vessel” for “the cost of the vessel”.

Subsec. (b). Act June 23, 1938, §10, permitted negotiations and contracts to build vessels in domestic shipyards in cases where the construction differential exceeds 331/3 per centum or 50 per centum of the cost, and to require a report where there is reason to believe that the bidding is collusive.

Subsec. (c). Act June 23, 1938, §11, among other changes, substituted “of not less than 25 per centum of the price at which the vessel is sold to the applicant” for “a sum equal to 25 per centum of the construction cost of the vessel paid by the Commission (excluding cost of national-defense features as above provided)”, and required the applicant to pay, not less frequently than annually, interest at the rate of 31/2 per centum per annum on those portions of payments made to the shipbuilder which are chargeable to the applicant's purchase price of the vessel (after deduction of the applicant's cash payments).

Subsec. (d). Act June 23, 1938, §12, substituted “construction-differential subsidy” for “construction subsidy”, and inserted provisions relating to limitation on approval of construction-differential in excess of 50 per centum of the construction cost of the vessel paid by the Commission.

Subsec. (f). Act June 23, 1938, §13, added subsec. (f).

Subsec. (g). Act June 23, 1938, §14, added subsec. (g).

Effective Date of 1962 Amendment

Section 5 of Pub. L. 87–877 provided that: “The amendment made by the first section of this Act [amending this section] 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.”

Effective Date of 1960 Amendments

Section 2 of Pub. L. 86–607, as amended by Pub. L. 87–222, Sept. 13, 1961, 75 Stat. 494, provided that: “The amendment made by this Act [amending this section] 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 [this section], 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.”

Amendment by Pub. L. 86–518 applicable only to vessels delivered by the shipbuilder on or after Jan. 1, 1946, and with respect to such vessels shall become effective on Jan. 1, 1960, and with respect to vessels delivered by the shipbuilder before Jan. 1, 1946, the provisions of this chapter existing immediately before June 12, 1960, shall continue in effect, see section 8(a) of Pub. L. 86–518, set out as a note under section 1125 of this Appendix.

Modification of Contracts; Conditions

Section 2 of Pub. L. 88–410 provided that: “The amendment made by this Act [amending this section] shall be effective with respect to any contract entered into under the provisions of section 502 of the Merchant Marine Act, 1936, as amended [this section], and the Secretary of Commerce shall, with the consent of the other parties thereto, modify any such contract entered into prior to the date of the enactment of this Act [Aug. 10, 1964] to the extent authorized by the amendment made by this Act, except that the Secretary shall not agree to any such modification which would result in a payment by the United States unless, within one year after enactment of this Act, application is made for such modification. No payment shall be made by the Secretary under the provisions of the amendment made by this Act with respect to any contract entered into after the date of enactment of this Act unless the recipient of such payment has agreed to the modification of any contract which was entered into prior to the date of enactment of this Act and to which such recipient was a party, and which, if modified under the authority of this section, would result in a payment to the United States.”

Contracts for New Ship Construction Awarded on Bids Opened Prior to October 24, 1962

Section 2(a) of Pub. L. 87–877 provided in part: “That the repeal of subsection (d) of section 502 of the Merchant Marine Act, 1936 [subsec. (d) of this section], shall not be effective with respect to contracts for new ship construction under title V of said Act [this subchapter] awarded on the basis of bids opened prior to the date of the enactment of this Act. [Oct. 24, 1962].”

Rate of Depreciation for Vessels Delivered by Shipbuilder on or After January 1, 1946, and Before January 1, 1960

For provisions relating to computation of depreciation with respect to vessels delivered by the shipbuilder on or after Jan. 1, 1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86–518, set out as a note under section 1125 of this Appendix.

Revision of Contracts, Commitments To Insure Mortgages, Mortgages, and Mortgage Insurance Contracts Entered Into Prior to June 12, 1960

For provisions authorizing revision, see section 8(c) of Pub. L. 86–518, set out as a note under section 1125 of this Appendix.

Commercial Expectancy or Period of Depreciation of Tankers and Other Liquid Bulk Carriers

Nothing in any amendment made by Pub. L. 86–518 to operate or be interpreted to change from 20 to 25 years the provisions of this chapter relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier, see section 9 of Pub. L. 86–518, set out as a note under section 1125 of this Appendix.

Construction and Sale of Superliner Passenger Vessels

Pub. L. 85–521, July 15, 1958, 72 Stat. 359, provided: “That it is necessary, in order to carry out the merchant marine policy declared in the Merchant Marine Act, 1936, as amended [this chapter], to have (a) a superliner passenger vessel equivalent to the steamship United States, to replace the steamship America for operation on an essential trade route in the North Atlantic, and (b) a superliner passenger vessel with capacity of approximately one thousand four hundred passengers for operation on an essential trade route in the Pacific Ocean. Nothing herein shall preclude the operation of either of these vessels in other areas, subject to the approval of the Federal Maritime Board. There is hereby authorized to be appropriated to the Department of Commerce such sums as may be necessary, to remain available until expended, for the construction, outfitting, and equipping of such vessels.

Sec. 2. Concurrently with entering into contracts with shipbuilders for the construction of said vessels, the Board is authorized to enter into contracts for the sale of the vessels, fully outfitted and equipped, upon their completion, (a) with respect to the superliner passenger vessel equivalent to the steamship United States, to the United States Lines Company, for the fixed price of $47,000,000, and (b) with respect to the superliner passenger vessel for operation in the Pacific Ocean, to the American President Lines, Limited, for the fixed price of $34,000,000, or 45 per centum of the domestic construction cost of the vessel fully outfitted and equipped (excluding national defense features and escalation) whichever is the greater. The sales prices stated herein shall include the cost of stabilizers, all outfit and equipment not covered by the shipbuilders’ bids, customary architects’ and interior decorators’ fees for design, inspection during construction, and all escalation provided for in the shipbuilders’ bids: Provided, however, That such prices shall be increased in an amount equal to 45 per centum of any net change in the cost of the vessels (other than national defense features) arising out of any changes in the bid specifications approved by the Federal Maritime Board or any changes in the usual outfitting and equipping of the vessels if such changes are requested by the purchasers and approved by the Federal Maritime Board after the enactment hereof. Terms and conditions of payment of the purchase price shall be as provided for in sections 502(c) and 503 of the Merchant Marine Act, 1936, as amended [sections 1152(c) and 1153 of this Appendix]. In order that such construction of the superliner passenger vessel equivalent to the steamship United States may be accomplished promptly, the Federal Maritime Board, in its discretion, may have such a vessel constructed, without further bidding, under outstanding bids which have hitherto been made by United States shipbuilders on a similar vessel.

Sec. 3. Except as otherwise provided in this Act, the construction and sale of the superliner passenger vessels authorized by this Act shall be in accordance with the provisions of the Merchant Marine Act, 1936, as amended [this chapter].

Sec. 4. For the purposes of this Act the words ‘construction differential subsidy’ used in the Merchant Marine Act, 1936, as amended [this chapter], shall mean the difference between the sales price paid by the purchaser hereunder and the cost of the vessel (less national defense features) including the cost of stabilizers, all outfit and equipment not covered by the shipbuilders’ bids, customary architects’ and interior decorators’ fees for design, inspection during construction, and all escalation provided for in the shipbuilders’ bids.

Sec. 5. Any contract for an operating differential subsidy on the operation of a vessel constructed and sold under this Act shall be subject to the provisions of title VI of the Merchant Marine Act, 1936, as amended [subchapter VI of this chapter]: Provided, however, That such contract shall provide that, if at the end of any recapture period, the net profits on the operation of such vessel for such recapture period, computed without regard to profits or losses on other vessels operated by the contractor, exceed 10 per centum per annum on a cumulative basis upon the contractor's capital necessarily employed in the operation of such vessel, as determined by the Federal Maritime Board, the contractor shall account to the United States for an amount equal to 75 per centum of such excess profits.”

Section Referred to in Other Sections

This section is referred to in section 1154 of this Appendix.

§1153. Documentation of completed vessel under laws of United States; delivery to purchaser; first mortgage to secure deferred payments

Upon completion of the construction of any vessel in respect to which a construction-differential subsidy is to be allowed under this subchapter 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 1737(b) 1 of the Appendix to title 50, reconverted or restored for normal operation in commercial services, or in respect to a passenger vessel purchased under subchapter V of this chapter, 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 Transportation 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