Part E—Control of Merchant Marine Capabilities
CHAPTER 561 —RESTRICTIONS ON TRANSFERS
§56101. Approval required to transfer vessel to noncitizen
(a)
(1)
(A) sell, lease, charter, deliver, or in any other manner transfer, or agree to sell, lease, charter, deliver, or in any other manner transfer, to a person not a citizen of the United States, an interest in or control of—
(i) a documented vessel owned by a citizen of the United States; or
(ii) a vessel last documented under the laws of the United States; or
(B) place under foreign registry, or operate under the authority of a foreign country, a documented vessel or a vessel last documented under the laws of the United States.
(2)
(b)
(c)
(1)(A) the Secretary, in conjunction with the Secretary of Defense, determines that at least one replacement vessel of equal or greater military capability and of a capacity that is equivalent or greater, as measured by deadweight tons, gross tons, or container equivalent units, as appropriate, is documented under
(B) the replacement vessel is not more than 10 years old on the date of that documentation; or
(2) an operating agreement covering the vessel under
(d)
(e)
(1)
(2)
(3)
(A) knowingly sells, charters, or transfers the vessel or an interest in or control of the vessel; or
(B) places the vessel under foreign registry or operates the vessel under the authority of a foreign country.
(f)
(1) a detailed summary of each request for a determination, approval, or confirmation that a vessel charter for a passenger vessel is encompassed by the general approval of time charters issued pursuant to this section or regulations prescribed pursuant to such section; and
(2) the final action of the Administration with respect to such request, after the provision of notice and opportunity for public comment.
(
In subsection (a), the text of 46 App. U.S.C. 808a is omitted as unnecessary. In paragraph (1), the words "owned by a citizen of the United States" are omitted as unnecessary because ownership by a citizen is a requirement for documentation. See section 12103 as revised by the bill.
In subsection (c), before paragraph (1), the words "Notwithstanding any other provision of this subtitle, the Merchant Marine Act, 1936, or any contract with the Secretary made under this subtitle or that Act" are substituted for "Notwithstanding subsection (c)(2) of this section, the Merchant Marine Act, 1936 [46 App. U.S.C. 1101 et seq.], or any contract entered into with the Secretary of Transportation under that Act" because the Merchant Marine Act, 1936, is restated principally in this subtitle, but other provisions of that Act are being neither restated nor repealed.
Editorial Notes
References in Text
The Merchant Marine Act, 1936, referred to in subsecs. (a)(1) and (c), is act June 29, 1936, ch. 858,
Codification
The text of section 3502(b) of
Amendments
2023—Subsec. (f).
Statutory Notes and Related Subsidiaries
Foreign Vessel Charters for Passenger Vessels
§56102. Additional controls during war or national emergency
(a)
(1) place under foreign registry a vessel owned in whole or in part by a citizen of the United States or a corporation incorporated under the laws of the United States or of a State;
(2) sell, mortgage, lease, charter, deliver, or in any other manner transfer, or agree to sell, mortgage, lease, charter, deliver, or in any other manner transfer, to a person not a citizen of the United States—
(A) a vessel owned as described in paragraph (1), or an interest therein;
(B) a vessel documented under the laws of the United States, or an interest therein; or
(C) a facility for building or repairing vessels, or an interest therein;
(3) issue, assign, or transfer to a person not a citizen of the United States an instrument of indebtedness secured by a mortgage of a vessel to a trustee, by an assignment of an owner's interest in a vessel under construction to a trustee, or by a mortgage of a facility for building or repairing vessels to a trustee, unless the trustee or a substitute trustee is approved by the Secretary under subsection (b);
(4) enter into an agreement or understanding to construct a vessel in the United States for, or to be delivered to, a person not a citizen of the United States without expressly stipulating that construction will not begin until after the war or national emergency has ended;
(5) enter into an agreement or understanding whereby there is vested in, or for the benefit of, a person not a citizen of the United States the controlling interest in a corporation that is incorporated under the laws of the United States or a State and that owns a vessel or facility for building or repairing vessels; or
(6) cause or procure a vessel, constructed in whole or in part in the United States and never cleared for a foreign port, to depart from a port of the United States before it has been documented under the laws of the United States.
(b)
(1)
(A) is organized as a corporation, and is doing business, under the laws of the United States or a State;
(B) is authorized under those laws to exercise corporate trust powers;
(C) is a citizen of the United States;
(D) is subject to supervision or examination by Federal or State authority; and
(E) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000.
(2)
(3)
(c)
(d)
(1)
(2)
(e)
(1)
(2)
(A) A vessel, a facility for building or repairing vessels, or an interest in a vessel or such a facility, that is sold, mortgaged, leased, chartered, delivered, transferred, or documented, or agreed to be sold, mortgaged, leased, chartered, delivered, transferred, or documented, in violation of this section.
(B) Stock and other securities sold or transferred, or agreed to be sold or transferred, in violation of this section.
(C) A vessel departing in violation of subsection (a)(6).
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56102(a) | 46 App.:835(a)–(c) (less provisos), (d)–(f). | Sept. 7, 1916, ch. 451, §37, as added July 15, 1918, ch. 152, §4, |
| 56102(b) | 46 App.:835(c) (provisos). | |
| 56102(c) | 46 App.:835 (2d par. after cl. (f), last par. words before 9th comma). | |
| 56102(d) | 46 App.:835 (last par. words after 9th comma). | |
| 56102(e) | 46 App.:835 (1st, 3d pars. after cl. (f)). |
In this section, the words "facility for building or repairing vessels" are substituted for "shipyard, dry dock, shipbuilding or ship-repairing plant or facility" (or similar language) to eliminate unnecessary words.
In subsection (a)(1), the words "transfer to" and "or flag" are omitted as surplus. The words "Territory, District, or possession thereof" are omitted as unnecessary because of the definition of "State" in
In subsection (a)(3), the words "instrument of indebtedness" are substituted for "bond, note, or other evidence of indebtedness" to eliminate unnecessary words. The words "right, title, or" are omitted as unnecessary.
In subsection (a)(5), the words "or the majority of the voting power" are omitted as covered by "controlling interest".
In subsection (b)(1), before subparagraph (A), the words "and only if" are added for clarity because the Secretary is required to disapprove a trustee that ceases to meet the specified conditions.
Subsections (c) and (d) are substituted for the source provisions to eliminate unnecessary words.
In subsection (e)(1), the words "guilty of a misdemeanor" are omitted, and the words "fined under title 18" are substituted for "punishable by a fine of not more than $5000", because of
§56103. Conditional approvals
(a)
(b)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56103 | 46 App.:839 (1st par.). | Sept. 7, 1916, ch. 451, §41 (1st par.), as added July 15, 1918, ch. 152, §4, |
This section is substituted for the source provision to eliminate unnecessary words.
§56104. Penalty for false statements
A person that knowingly makes a false statement of a material fact to the Secretary of Transportation or another officer, employee, or agent of the Department of Transportation, to obtain the Secretary's approval under
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56104 | 46 App.:839 (last par.). | Sept. 7, 1916, ch. 451, §41 (last par.), as added July 15, 1918, ch. 152, §4, |
The words "guilty of a misdemeanor" are omitted, and the words "fined under title 18" are substituted for "subject to a fine of not more than $5000", because of
§56105. Forfeiture procedure
(a)
(b)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56105(a) | 46 App.:836. | Sept. 7, 1916, ch. 451, §38, as added July 15, 1918, ch. 152, §4, |
| 56105(b) | 46 App.:837. | Sept. 7, 1916, ch. 451, §39, as added July 15, 1918, ch. 152, §4, |
CHAPTER 563 —EMERGENCY ACQUISITION OF VESSELS
Editorial Notes
Amendments
2017—
1 So in original. Probably should be followed by a period.
§56301. General authority
During a national emergency declared by Presidential proclamation, or a period for which the President has proclaimed that the security of the national defense makes it advisable, the Secretary of Transportation may requisition or purchase, or requisition or charter the use of, a vessel owned by citizens of the United States, a documented vessel, or a vessel under construction in the United States.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56301 | 46 App.:1242(a) (1st, 2d sentences). | June 29, 1936, ch. 858, title IX, §902(a) (1st, 2d sentences), |
The words "or other watercraft" are omitted because of the definition of "vessel" in
§56302. Charter terms
(a)
(1) the terms the Secretary believes should govern the relationship between the United States Government and the person; and
(2) the rate of hire the Secretary considers just compensation for the use of the vessel and the services required under the charter.
(b)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56302 | 46 App.:1242(c) (1st sentence). | June 29, 1936, ch. 858, title IX, §902(c) (1st sentence); as added Aug. 7, 1939, ch. 555, §3, |
In subsection (a), the words "requisitioned for use but not ownership under this chapter" are substituted for "taken and used under authority of this section, but the ownership thereof is not required by the United States" to eliminate unnecessary words. The word "requisition" is substituted for "taking", and the word "vessel" is substituted for "such property", for consistency.
Subsection (b) is added because the provisions about disputed compensation, for both charter use and other takings, are consolidated in section 56304 of the revised title to avoid repetition.
§56303. Compensation
(a)
(b)
(c)
(1)
(2)
(d)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56303(a) | 46 App.:1242(a) (3d sentence words before 2d comma), (d) (1st par. words before 2d comma). | June 29, 1936, ch. 858, title IX, §902(a) (3d, last sentences), (b), (d) (1st par. words before 2d comma), |
| 56303(b) | 46 App.:1242(a) (3d sentence words after 2d comma, last sentence). | |
| 56303(c) | 46 App.:1242(b). | |
| 56303(d) | 46 App.:1242(c) (last sentence). |
Editorial Notes
References in Text
Section 802 of the Merchant Marine Act, 1936, referred to in subsec. (c)(1), is section 802 of act June 29, 1936, ch. 858,
§56304. Disputed compensation
If the person entitled to compensation disputes the amount of just compensation determined by the Secretary of Transportation under this chapter, the Secretary shall pay the person, as a tentative advance, 75 percent of the amount determined. The person may bring a civil action against the United States to recover just compensation. If the tentative advance paid under this section is greater than the amount of the court's judgment, the person shall refund the difference.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56304 | 46 App.:1242(c) (2d sentence), (d) (1st par. words after 2d comma). | June 29, 1936, ch. 858, title IX, §902(c) (2d sentence), (d) (1st par. words after 2d comma); as added Aug. 7, 1939, ch. 555, §3, |
This section is substituted for the source provisions to eliminate unnecessary words.
§56305. Vessel encumbrances
(a)
(b)
(1)
(2)
(c)
(1)
(2)
(A) from whose custody the vessel was or may be requisitioned; or
(B) in whose district the vessel was located when it was requisitioned.
(3)
(4)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56305 | 46 App.:1242(d) (last par.). | June 29, 1936, ch. 858, title IX, §902(d) (last par.), as added Mar. 24, 1943, ch. 26, §3(d), |
In this section, the words "encumbrance" and "encumbrances" are substituted for "any valid claim by way of mortgage or maritime claim or attachment lien" and "any valid claim by way of mortgage or maritime lien or attachment lien" to eliminate unnecessary words.
In subsection (b)(1), the words "The Secretary shall publish notice of the creation of the fund in the Federal Register" are added for clarity, based on language barring a civil action not brought within 6 months after publication of such a notice.
In subsection (c)(1), the words "Within 6 months after publication of notice under subsection (b)" are substituted for "prior to June 30, 1943, or within six months after the first such deposit with the Treasurer and publication of notice thereof in the Federal Register, whichever date is later" for clarity and to eliminate obsolete language.
Subsection (c)(3) is substituted for "and such suit shall be commenced in the manner provided by section 742 of this Appendix and service of process shall be made in the manner therein provided by service upon the United States attorney and by mailing by registered mail to the Attorney General and the Secretary of Transportation and due notice shall under order of the court be given to all interested persons" because the relevant sentences in 46 App. U.S.C. 742 were struck by an amendment in 1996. See generally Henderson v. United States, 517 U.S. 654, 116 S. Ct. 1638 (1996).
In subsection (c)(4), the words "any decree in said suit shall be paid out of the first and all subsequent deposits of compensation" and "any decree shall be subject to appeal and revision as now provided in other cases of admiralty and maritime jurisdiction" are omitted as surplus.
§56306. Use and transfer of vessels
(a)
(b)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56306 | 46 App.:1242(e). | June 29, 1936, ch. 858, title IX, §902(e); as added Aug. 7, 1939, ch. 555, §3, |
In this section, the word "vessel" is substituted for "property" for consistency in the chapter.
In subsection (b), the words "Such reimbursements shall be deposited in the construction fund established by section 1116 of this Appendix" are omitted as impliedly repealed by 46 App. U.S.C. 1119 as amended in 1967.
§56307. Return of vessels
When a vessel requisitioned for use but not ownership is returned to the owner, the Secretary of Transportation shall—
(1) return the vessel in a condition at least as good as when taken, less ordinary wear and tear; or
(2) pay the owner an amount sufficient to recondition the vessel to that condition, less ordinary wear and tear.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56307 | 46 App.:1242(a) (4th sentence). | June 29, 1936, ch. 858, title IX, §902(a) (4th sentence), |
The words "requisitioned for use but not ownership" are substituted for "taken and used under authority of this section, but the ownership thereof is not required by the United States" to eliminate unnecessary words.
§56308. Transfer of substitute vessels
In the case of any vessel constructed in the United States after January 1, 1937, which has been taken by the United States for use in any manner, the Secretary of Transportation, if in his opinion the transfer would aid in carrying out the policies of this Act,1 is authorized to transfer to the owner of such vessel another vessel which is deemed by the Secretary to be of comparable type with adjustments for depreciation and difference in design or speed, and to the extent applicable, such other adjustments and terms and conditions, including transfer of mortgage obligations in favor of the United States binding upon the old vessel, as the Secretary may prescribe.
(Added and amended
Editorial Notes
References in Text
This Act, referred to in text, means act Mar. 8, 1946, ch. 82,
Codification
Section, as added and amended by
Amendments
2017—
1 See References in Text note below.
§56309. Emergency foreign vessel acquisition; purchase or requisition of vessels lying idle in United States waters
During any period in which vessels may be requisitioned under this chapter, the President is authorized and empowered through the Secretary of Transportation to purchase, or to requisition, or for any part of such period to charter or requisition the use of, or to take over the title to or possession of, for such use or disposition as he shall direct, any merchant vessel not owned by citizens of the United States which is lying idle in waters within the jurisdiction of the United States and which the President finds to be necessary to the national defense. Just compensation shall be determined and made to the owner or owners of any such vessel in accordance with the applicable provisions of this chapter. Such compensation hereunder, or advances on account thereof, shall be deposited with the Treasurer of the United States in a separate deposit fund. Payments for such compensation and also for payment of any valid claim upon such vessel in accord with the provisions of section 56305, shall be made from such fund upon the certificate of the Secretary of Transportation.
(Added and amended
Editorial Notes
Codification
Section, as added and amended by section 3504(a) of
Amendments
2017—
Statutory Notes and Related Subsidiaries
References
§56310. Voluntary purchase or charter agreements
During any period in which vessels may be requisitioned under this chapter as amended,1 the President is authorized through the Secretary of Transportation to acquire by voluntary agreement of purchase or charter the ownership or use of any merchant vessel not owned by citizens of the United States.
(Added and amended
Editorial Notes
Codification
Section, as added and amended by section 3504(b) of
Amendments
2017—
§56311. Requisitioned vessels
(a) Any vessel not documented under the laws of the United States, acquired by or made available to the Secretary of Transportation under section 56309 or 56310, as applicable, or otherwise, may, notwithstanding any other provision of law, in the discretion of the Secretary of the department in which the Coast Guard is operating be documented as a vessel of the United States under such rules and regulations or orders, and with such limitations, as the Secretary of the department in which the Coast Guard is operating may prescribe or issue as necessary or appropriate to carry out the purposes and provisions of section 56309 or 56310, as applicable, and in accordance with the provisions of subsection (c), engage in the coastwise trade when so documented. Any document issued to a vessel under the provisions of this subsection shall be surrendered at any time that such surrender may be ordered by the Secretary of the department in which the Coast Guard is operating. No vessel, the surrender of the documents of which has been so ordered, shall, after the effective date of such order, have the status of a vessel of the United States unless documented anew.
(b) The President may, notwithstanding any other provisions of law, by rules and regulations or orders, waive compliance with any provision of law relating to masters, officers, members of the crew, or crew accommodations on any vessel documented under authority of this section to such extent and upon such terms as he finds necessary because of the lack of physical facilities on such vessels, and because of the need to employ aliens for their operation. No vessel shall cease to enjoy the benefits and privileges of a vessel of the United States by reason of the employment of any person in accordance with the provisions of this subsection.
(c) Any vessel while documented under the provisions of this section, when chartered under section 56309 or 56310, as applicable, by the Secretary of Transportation to Government agencies or departments or to private operators, may engage in the coastwise trade under permits issued by the Secretary of Transportation, who is authorized to issue permits for such purpose pursuant to such rules and regulations as he may prescribe. The Secretary of Transportation is authorized to prescribe such rules and regulations as he may deem necessary or appropriate to carry out the purposes and provisions of this section. Section 57109 shall not apply with respect to vessels chartered to Government agencies or departments or to private operators or otherwise used or disposed of under section 56309 or 56310, as applicable. Existing laws covering the inspection of steam vessels are made applicable to vessels documented under this section only to such extent and upon such conditions as may be required by regulations of the Secretary of the department in which the Coast Guard is operating: Provided, That in determining to what extent those laws should be made applicable, due consideration shall be given to the primary purpose of transporting commodities essential to the national defense.
(d) The Secretary of Transportation without regard to the 1
(e) In case of any voyage of a vessel documented under the provisions of this section begun before the date of termination of an effective period of
(Added and amended
Editorial Notes
Codification
Section, as added and amended by section 3504(c) of
Amendments
2017—
Subsec. (c).
Subsec. (d).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see
"Secretary of the department in which the Coast Guard is operating" substituted in subsec. (a) for "Secretary of the Treasury" pursuant to section 6(b)(1), (2) of
1 So in original. The word "the" probably should not appear.
2 So in original. Probably should be followed by a comma.
§56312. Documented defined
In sections 56309 through 56311, the term "documented" means, with respect to a vessel, that a certificate of documentation has been issued for the vessel under
(Added
CHAPTER 565 —ESSENTIAL VESSELS AFFECTED BY NEUTRALITY ACT
§56501. Definition
In this chapter, the term "essential vessel" means a vessel that is—
(1)(A) security for a mortgage indebtedness to the United States Government; or
(B) constructed under this subtitle or required by a contract under this subtitle to be operated on a certain essential foreign trade route; and
(2) necessary in the interests of commerce and national defense to be maintained in condition for prompt use.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56501 | 46 App.:1242a(a). | June 29, 1940, ch. 442, subdiv. (a), |
§56502. Adjusting obligations and arranging maintenance
(a)
(1) the operation of the vessel in the service, route, or line to which it is assigned under this subtitle, or in which it otherwise would be operated, is not—
(A) lawful under the Neutrality Act of 1939 (
(B) compatible with maintaining the availability of the vessel for national defense and commerce;
(2) it is not feasible under existing law to employ the vessel in any other service or operation in foreign or domestic trade (except temporary or emergency operation under
(3) the applicant, because of the restrictions of the Neutrality Act of 1939 (
(b)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56502 | 46 App.:1242a(b), (e). | June 29, 1940, ch. 442, subdivs. (b), (e), |
The text of 46 App. U.S.C. 1242a(b) (1st sentence) is omitted as surplus. The text of 46 App. U.S.C. 1242a(e) is omitted as obsolete.
Editorial Notes
References in Text
The Neutrality Act of 1939, referred to in subsec. (a)(1)(A), (3), is act Nov. 4, 1939, ch. 2,
§56503. Types of adjustments and arrangements
(a)
(1) the requirement to operate the vessel in foreign trade under the applicable operating-differential or construction-differential subsidy contract or mortgage or other agreement; and
(2) the right to operating-differential subsidy for the vessel.
(b)
(1) Lay-up of the vessel by the owner or in the custody of the Secretary, with payment or reimbursement by the Secretary of necessary and proper expenses (including reasonable overhead and insurance) or a fixed periodic allowance instead of payment or reimbursement.
(2) Postponement, for not more than the total period of the lay-up, of the maturity date of each installment of the principal of obligations to the United States Government for the vessel (regardless of whether the maturity date is during a lay-up period), or rearrangement of those maturities.
(3) Postponement or cancellation of interest accruing on the obligations during a lay-up period.
(4) Extension, for not more than the total period of the lay-up, of the 20-year life limitation for the vessel and other limitations and provisions of this subtitle based on a 20-year life.
(5) Provision for temporary or emergency employment of the vessel (instead of lay-up) as may be practicable, with such arrangements for management of the vessel, payment of expenses, and application of the proceeds of the employment, as the Secretary may approve, with any period of operation being included as part of the lay-up period.
(6) Payment to the Secretary, on termination of the arrangements with the applicant, of the applicant's net profits (earned while the arrangements were in effect) in excess of 10 percent a year on the capital necessarily employed in the applicant's business, as reimbursement for obligations postponed or canceled and expenses incurred or paid by the Secretary under this section.
(c)
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56503 | 46 App.:1242a(c). | June 29, 1940, ch. 442, subdiv. (c), |
§56504. Changes in adjustments and arrangements
The Secretary of Transportation may change an adjustment or arrangement made under this chapter as the Secretary considers necessary to carry out this chapter.
(
| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 56504 | 46 App.:1242a(d). | June 29, 1940, ch. 442, subdiv. (d), |