CHAPTER 23 —SHIPPING ACT
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,
"(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 of this Appendix], are repealed insofar as they are inconsistent with any provision of this chapter [section 901 et seq.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the jurisdiction of the Commission under the provisions of this chapter; and any other provisions of law are hereby repealed insofar as they are inconsistent with any provision of this chapter.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)
"(2) the third sentence of
"(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)
"(c) Nothing in subsection (a) of this section shall be construed to affect the provisions of
"(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, 1719 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,
Amendments
1984—
1981—
1980—
1978—
1961—
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
Effective Date of 1978 Amendment
Section 4 of
Repeals
For provisional repeal, see note set out preceding section 801 of this Appendix.
Section 1608 of
Savings Provision
Amendment by
Report to Congress on Enforceability and Need
Section 1608(c) of
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 chief executive officer, by whatever title, 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),
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
1998—Subsec. (a).
1959—Subsec. (a).
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, 1187a, 1187e, 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; 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),
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, 1187a, 1187e of this Appendix; title 28 section 2342; title 46 section 12106.
§804a. Omitted
Codification
Section, act June 30, 1932, ch. 314, §306,
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, lease, etc., to foreign persons; foreign registry or operation
Except as provided in section 1181 of this Appendix and sections 12106(e),1 31322(a)(1)(D), and 12106(e) 1 of title 46, a person may not, without the approval of the Secretary of Transportation—
(1) sell, lease, charter, deliver, or in any manner transfer, or agree to sell, 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
(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, or transfer of a vessel, or interest in or control of that vessel, contrary to this section is void.
(2) A person that knowingly charters, sells, or transfers 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, or transfers a vessel, or interest or control in that vessel, contrary to this section.
(4) A person that charters, sells, or transfers a vessel, or an interest in or control of a vessel, in violation of this section is liable to the United States Government for a civil penalty of not more than $10,000 for each violation.
(e) Placement in foreign registry without approval of Secretary
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, a vessel may be placed under a foreign registry, without approval of the Secretary, if—
(1)(A) the Secretary determines that at least one replacement vessel 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 of age on the date of that documentation;
(2)(A) an application for an operating agreement under subtitle B of title VI of the Merchant Marine Act, 1936 [46 App. U.S.C. 1187 et seq.] has been filed with respect to a vessel which is eligible to be included in the Maritime Security Fleet under section 651(b)(1) of that Act [46 App. U.S.C. 1187(b)(1)]; and
(B) the Secretary has not awarded an operating agreement with respect to that vessel within 90 days after the date of that application;
(3) a contract covering the vessel under subtitle A of title VI of the Merchant Marine Act, 1936 [46 App. U.S.C. 1171 et seq.] has expired, and that vessel is more than 15 years of age on the date the contract expires; or
(4) an operating agreement covering the vessel under subtitle B of title VI of the Merchant Marine Act, 1936 has expired.
(e) 2 Approval of certain vessel transactions before documentation of vessel
To promote financing with respect to a vessel to be documented under
(Sept. 7, 1916, ch. 451, §9,
References in Text
The Merchant Marine Act, 1936, referred to in subsec. (e), is act June 29, 1936, ch. 858,
Amendments
1996—Subsec. (c).
Subsec. (c)(1).
Subsec. (d).
Subsec. (e).
1989—Subsec. (a).
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (d)(1), (2).
Subsec. (d)(4).
1988—Subsecs. (a), (b).
Subsecs. (c), (d).
1981—
1965—
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
Retroactive Provisions
Section 4 of
"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
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
Documentation of foreign merchant vessels acquired under emergency authority, see
Section Referred to in Other Sections
This section is referred to in sections 808a, 839, 865a, 883, 883–1, 1160, 1222 of this Appendix; title 28 section 2342; title 46 sections 12111, 31306, 31325; title 50 section 198.
2 So in original. Probably should be "(f)".
§808a. Sale, chartering, leasing, mortgaging or transferring of documented vessels without approval of Secretary
A vessel that is or was last documented under
(
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,
Amendments
1981—
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
§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 it in its 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 the Shipping Act of 1984 [46 App. U.S.C. 1701 et seq.] 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.
(
References in Text
The Shipping Act of 1984, referred to in subsec. (d), is
Codification
Section was not enacted as part of the Shipping Act, 1916, which comprises this chapter.
Amendments
1998—Subsec. (c).
1996—Subsec. (d).
1993—Subsec. (e).
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1996 Amendment
Section 746(c) of
Effective Date
Section 5 of
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,
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 it in its 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 the Shipping Act of 1984 [46 App. U.S.C. 1701 et seq.] 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.
(
References in Text
The Shipping Act of 1984, referred to in subsec. (d), is
Codification
Section was not enacted as part of the Shipping Act, 1916, which comprises this chapter.
Amendments
1998—Subsec. (c).
1996—Subsec. (d).
1993—Subsec. (b).
Subsec. (e).
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1996 Amendment
Section 746(c) of
Effective Date
Section 5 of
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,
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,
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,
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,
References in Text
Subsection (e) of this section, referred to in penultimate par., was redesignated subsection (f) of this section by
Amendments
1981—
1965—Subsecs. (c) to (f).
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
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,
Termination of War and Emergencies
Joint Res. July 25, 1947, ch. 327, §3,
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, 31325.
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,
Amendments
1989—
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,
Termination of War and Emergencies
Joint Res. July 25, 1947, ch. 327, §3,
Cross References
Forfeitures for offenses against collection of duties, see
§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,
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,
Termination of War and Emergencies
Joint Res. July 25, 1947, ch. 327, §3,
§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,
Amendments
1981—
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
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,
Termination of War and Emergencies
Joint Res. July 25, 1947, ch. 327, §3,
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,
Short Title of 1980 Amendment
Section 1 of
Short Title of 1979 Amendment
Short Title of 1978 Amendment
Repeals
For provisional repeal, see note set out preceding section 801 of this Appendix.