Title 46 -- Shipping


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    46 USC TITLE 46, APPENDIX - SHIPPING                         01/05/99
 
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    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    .
 
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    TITLE 46, APPENDIX - SHIPPING
 
-MISC1-
     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-
                              CROSS REFERENCES
          See, also, Title 33, Navigation and Navigable Waters.
      Arbitration of controversies arising out of maritime
    transactions, see Title 9, Arbitration.
 
-SECREF-
                   APPENDIX REFERRED TO IN OTHER SECTIONS
      This appendix is referred to in title 42 section 9607.
 
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    46 USC CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS           01/05/99
 
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    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS
    .
 
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    CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS
 
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    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, Sec. 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, Sec. 2, 62 Stat. 38; Feb. 28, 1949, ch. 12, 63 Stat. 9;
    June 29, 1949, ch. 281, Sec. 1, 63 Stat. 349; June 30, 1950, ch.
    427, Sec. 4, 64 Stat. 309.
 
-TRANS-
         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, Sec. 502(b). Bureau and office of its Director abolished
    by Reorg. Plan No. 3 of 1946, Sec. 104, set out below.
      Reorg. Plan No. 3 of 1946, Sec. 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, Sec. 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, Sec. 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    Commandant of the Coast Guard
     Navigation and its Director
    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           Marine Inspectors (or
     Inspectors                         ''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:
 
    ---------------------------------------------------------------------
    Title                  Chapter                Sections
    ---------------------------------------------------------------------
    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:
 
    ---------------------------------------------------------------------
    Title                  Chapter                Sections
    ---------------------------------------------------------------------
    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:
 
    ---------------------------------------------------------------------
    Title                  Chapter                Sections
    ---------------------------------------------------------------------
    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:
 
    ---------------------------------------------------------------------
    Title                  Chapter                Sections
    ---------------------------------------------------------------------
    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.
 
    ---------------------------------------------------------------------
    Title                  Chapter                Sections
    ---------------------------------------------------------------------
    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, Sec. 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.
 
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    46 USC Sec. 3                                                01/05/99
 
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    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS
 
-HEAD-
    Sec. 3. Measurement and numbering; tonnage tax
 
-STATUTE-
      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.
 
-SOURCE-
    (July 5, 1884, ch. 221, Sec. 3, 23 Stat. 119; June 30, 1932, ch.
    314, Sec. 501, 502(b), 47 Stat. 415; May 27, 1936, ch. 463, Sec. 1,
    49 Stat. 1380; 1946 Reorg. Plan No. 3, Sec. 101-104, eff.  July 16,
    1946, 11 F.R. 7875, 60 Stat. 1097.)
 
-TRANS-
                           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, Sec. 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, Sec. 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-
                              CROSS REFERENCES
      Measurement of vessels, see section 14101 et seq. of Title 46,
    Shipping.
 
-CITE-
    46 USC Sec. 9                                                01/05/99
 
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    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 1 - ADMINISTRATION OF SHIPPING LAWS
 
-HEAD-
    Sec. 9. Delegation of classification functions
 
-STATUTE-
    (a), (b) Repealed. Pub. L. 98-89, Sec. 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, Sec. 4(b), Aug. 26, 1983, 97 Stat. 600
 
-SOURCE-
    (July 5, 1884, ch. 221, Sec. 8, as added Pub. L. 97-136, Sec. 9,
    Dec. 29, 1981, 95 Stat. 1706; amended Pub. L. 97-322, title I, Sec.
    109, Oct. 15, 1982, 96 Stat. 1584; Pub. L. 98-89, Sec. 4(b), Aug.
    26, 1983, 97 Stat. 600.)
 
-MISC1-
                                 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).
 
-CITE-
    46 USC CHAPTER 2 - DOCUMENTATION, RECORDING, AND
                  MEASUREMENT                                    01/05/99
 
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    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    .
 
-HEAD-
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
 
-MISC1-
                     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-
                              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.
 
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    46 USC APPENDIX - SHIPPING                                   01/05/99
 
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    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS
    .
 
-HEAD-
    SUBCHAPTER I - GENERAL PROVISIONS
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 14                           01/05/99
 
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    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS
 
-HEAD-
    Sec. 14. Wrecked vessels
 
-STATUTE-
      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 (FOOTNOTE 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.
       (FOOTNOTE 1) So in original.  Probably should be ''vessel''.
 
-SOURCE-
    (R.S. Sec. 4136; Feb. 24, 1915, ch. 57, 38 Stat. 812; Pub. L.
    103-182, title VI, Sec. 686(a)(4), Dec. 8, 1993, 107 Stat. 2220.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4136 derived from acts Dec. 23, 1852, ch. 4, 10 Stat.
    149; July 23, 1866, ch. 213, 14 Stat. 212.
      R.S. Sec. 4136 was repealed by act Feb. 22, 1906, ch. 500, 34
    Stat. 17, and was reenacted and revised by act Feb. 24, 1915.
 
-MISC3-
                                 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,''.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 46 sections 3703a, 12106,
    12108.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 42                           01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS
 
-HEAD-
    Sec. 42. Oath on entry as to ownership
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4173.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4173 derived from act Dec. 31, 1792, ch. 1, Sec. 17, 1
    Stat. 295.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 57                           01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS
 
-HEAD-
    Sec. 57. Production of certificate on entry
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4184.)
 
-REFTEXT-
                             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. Sec. 4131 to 4305. For complete classification
    of R.S. Sec. 4131 to 4305 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4184 derived from act Dec. 31, 1792, ch. 1, Sec. 24, 1
    Stat. 297.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 59                           01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 2 - DOCUMENTATION, RECORDING, AND MEASUREMENT
    SUBCHAPTER I - GENERAL PROVISIONS
 
-HEAD-
    Sec. 59. Penalty for neglect by officers
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4188.)
 
-REFTEXT-
                             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. Sec. 4131 to 4305. For complete classification
    of R.S. Sec. 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, Sec. 127, Dec. 24, 1980, 94
    Stat. 3459.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4188 derived from act Dec. 31, 1792, ch. 1, Sec. 26, 1
    Stat. 298.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 3 - CLEARANCE AND
                  ENTRY                                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY
    .
 
-HEAD-
    CHAPTER 3 - CLEARANCE AND ENTRY
 
-MISC1-
    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 registry endorsement in trade with
      Canada.
 
-CROSS-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 91                           01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY
 
-HEAD-
    Sec. 91. Clearance; vessels
 
-STATUTE-
    (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.
 
-SOURCE-
    (R.S. Sec. 4197; Aug. 5, 1935, ch. 438, title II, Sec. 209, 49
    Stat. 526; June 16, 1938, ch. 476, Sec. 1, 52 Stat. 758; Sept. 1,
    1954, ch. 1213, title V, Sec. 501(a), 68 Stat. 1140; Pub. L.
    103-182, title VI, Sec. 686(b), Dec. 8, 1993, 107 Stat. 2221.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4197 derived from act Mar. 2, 1799, ch. 22, Sec. 93, 1
    Stat. 698.
 
-MISC3-
                                 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-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 817d, 817e, 876, 1710a,
    1712 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, 3205, 3318, 3718, 5113; title
    49 section 5122; title 50 App. section 13.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 97                           01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY
 
-HEAD-
    Sec. 97. State inspection laws
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4202.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4202 derived from act Mar. 2, 1799, ch. 22, Sec. 93, 1
    Stat. 699.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 98                           01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY
 
-HEAD-
    Sec. 98. Conveyance of bullion, coin, notes, or bonds for United
        States
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4204; Apr. 5, 1906, ch. 1366, Sec. 3, 34 Stat. 100.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4204 derived from act July 4, 1864, ch. 249, Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 100                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY
 
-HEAD-
    Sec. 100. Payment of fees on vessels outward bound
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4206.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4206 derived from acts Mar. 3, 1797, ch. 9, Sec. 5, 1
    Stat. 503; Mar. 2, 1799, ch. 22, Sec. 93, 1 Stat. 699.
 
-TRANS-
                           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-
                              CROSS REFERENCES
      Establishment and collection of fees for certain services to
    vessels, see section 2110 of Title 46, Shipping.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 104                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY
 
-HEAD-
    Sec. 104. Reciprocal exemption of foreign yachts from charges and
        tonnage taxes; licenses
 
-STATUTE-
      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.
 
-SOURCE-
    (May 28, 1908, ch. 212, Sec. 5, 35 Stat. 425; Aug. 5, 1909, ch. 6,
    Sec. 37, 36 Stat. 112; Mar. 4, 1913, ch. 141, Sec. 1, 37 Stat. 736;
    1946 Reorg. Plan No. 3, Sec. 101-104, eff.  July 16, 1946, 11 F.R.
    7875, 60 Stat. 1097; June 26, 1948, ch. 673, 62 Stat. 1051.)
 
-COD-
                                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, Sec.
    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, Sec. 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.
 
-MISC3-
                                 AMENDMENTS
      1948 - Act June 26, 1948, removed the discrimination against
    yachts which do not belong to ''regularly organized yacht clubs''.
 
-TRANS-
                           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, Sec. 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, Sec.
    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-
                              CROSS REFERENCES
      Provisions relating to tonnage duties, see section 121 et seq. of
    this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 111                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 3 - CLEARANCE AND ENTRY
 
-HEAD-
    Sec. 111. Documented vessels with registry endorsement in trade
        with Canada
 
-STATUTE-
      Documented vessels with a registry endorsement, engaged in
    foreign trade on the Great Lakes or their tributary or connecting
    waters in trade with Canada, shall not thereby become liable to the
    payment of entry and clearance fees.
 
-SOURCE-
    (R.S. Sec. 2793; Sept. 25, 1941, ch. 423, 55 Stat. 733; Pub. L.
    103-182, title VI, Sec. 686(a)(1), Dec. 8, 1993, 107 Stat. 2220;
    Pub. L. 104-324, title XI, Sec. 1115(b)(4), Oct. 19, 1996, 110
    Stat. 3972.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 2793 derived from J. Res. Feb. 10, 1871, No. 27, Sec.
    2, 16 Stat. 595.
      Provisions of this section are also classified to section 288 of
    Title 19, Customs Duties.
      Provision of R.S. Sec. 2793 respecting tonnage duties is
    classified to section 123 of this Appendix.
 
-MISC3-
                                 AMENDMENTS
      1996 - Pub. L. 104-324 substituted ''registry endorsement,
    engaged in foreign trade on the Great Lakes or their tributary or
    connecting waters in trade with Canada,'' for ''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,'' and struck out '', as if from or
    to foreign ports'' after ''clearance fees''.
      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-
                              CROSS REFERENCES
      Vessels not required to make entry, see section 1441 of Title 19,
    Customs Duties.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 4 - TONNAGE DUTIES        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
    .
 
-HEAD-
    CHAPTER 4 - TONNAGE DUTIES
 
-MISC1-
    Sec.
    121. Amount of tonnage duties.
    122. Coasting and fishing vessels.
    123. Documented vessels with registry endorsement in trade with
      Canada.
    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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 121                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 121. Amount of tonnage duties
 
-STATUTE-
      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 through
    2002, 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 through 2002, 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.
 
-SOURCE-
    (R.S. Sec. 4219; Feb. 27, 1877, ch. 69, Sec. 1, 19 Stat. 250; June
    26, 1884, ch. 121, Sec. 14, 23 Stat. 57; Apr. 4, 1888, ch. 61, Sec.
    1, 25 Stat. 80; Aug. 5, 1909, ch. 6, Sec. 36, 36 Stat. 111; Mar. 4,
    1915, ch. 171, Sec. 1, 38 Stat. 1193; Pub. L. 101-508, title X,
    Sec. 10402(a), Nov. 5, 1990, 104 Stat. 1388-398; Pub. L. 103-66,
    title IX, Sec. 9001(a), (c)(1), Aug. 10, 1993, 107 Stat. 402; Pub.
    L. 105-33, title IX, Sec. 9201(a), Aug. 5, 1997, 111 Stat. 671.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4219 derived from acts July 20, 1790, ch. 30, Sec. 1, 1
    Stat. 135; Apr. 27, 1816, ch. 107, Sec. 6, 3 Stat. 314; Jan. 14,
    1817, ch. 3, Sec. 1, 3 Stat. 344; Mar. 1, 1817, ch. 31, Sec. 6, 3
    Stat. 352; Mar. 3, 1817, ch. 50, 3 Stat. 369; May 31, 1830, ch.
    219, Sec. 1, 4 Stat. 425; July 14, 1862, ch. 163, Sec. 15, 12 Stat.
    558; June 28, 1864, ch. 170, 13 Stat. 201; Mar. 3, 1865, ch. 80,
    Sec. 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. Sec.
    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, Sec. 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,
    Sec. 36. Portions of that paragraph omitted here, fixed the time of
    its taking effect, repealed R.S. Sec. 4232, act June 19, 1886, ch.
    421, Sec. 11 and 12, 24 Stat. 81, and so much of R.S. Sec. 4219 as
    conflicted therewith, and provided that it should not be construed
    to amend or repeal R.S. Sec. 2792, as amended, act May 28, 1908,
    ch. 212, Sec. 5, 35 Stat. 425, or R.S. Sec. 2793. That paragraph
    was expressly excepted from repeal by Underwood Tariff Act Oct. 13,
    1913, ch. 16, Sec. 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, Sec. 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, Sec. 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, Sec. 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. Sec. 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. Sec. 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, Sec. 11, 24 Stat. 81.
      Act June 19, 1878, ch. 318, 20 Stat. 171, amended R.S. Sec. 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. Sec. 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, Sec. 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. Sec. 3012 1/2.
    R.S. Sec. 3012 1/2, was also repealed by act June 10, 1890, Sec.
    29. By the repeal of R.S. Sec. 2931, 3012 1/2, act June 19, 1878,
    ch. 318, became inoperative.
      Act Feb. 10, 1900, ch. 15, Sec. 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, Sec. 11, 24 Stat.
    81. It was doubtless omitted from the code as executed.
      R.S. Sec. 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. Sec. 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, Sec. 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, Sec. IV, S, 38 Stat. 201.
      Act June 5, 1920, ch. 250, Sec. 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.
 
-MISC3-
                                 AMENDMENTS
      1997 - Second par.  Pub. L. 105-33 substituted ''for fiscal years
    1991 through 2002,'' for ''for fiscal years 1991, 1992, 1993, 1994,
    1995, 1996, 1997, 1998,'' in two places.
      1993 - Second par.  Pub. L. 103-66, Sec. 9001(c)(1), made
    technical correction to directory language of Pub. L. 101-508. See
    1990 Amendment note below.
      Pub. L. 103-66, Sec. 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, Sec. 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-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 132, 141 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 122                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 122. Coasting and fishing vessels
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4220.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4220 derived from acts July 14, 1870, ch. 255, Sec. 25,
    16 Stat. 269; Apr. 18, 1874, ch. 110, 18 Stat. 31.
 
-CROSS-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 123                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 123. Documented vessels with registry endorsement in trade
        with Canada
 
-STATUTE-
      Documented vessels with a registry endorsement, engaged in
    foreign trade on the Great Lakes or their tributary or connecting
    waters in trade with Canada, shall not thereby become liable to the
    payment of tonnage tax.
 
-SOURCE-
    (R.S. Sec. 2793; Sept. 25, 1941, ch. 423, 55 Stat. 733; Pub. L.
    103-182, title VI, Sec. 686(a)(1), Dec. 8, 1993, 107 Stat. 2220;
    Pub. L. 104-324, title XI, Sec. 1115(b)(4), Oct. 19, 1996, 110
    Stat. 3972.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 2793 derived from J. Res. Feb. 10, 1871, No. 27, Sec.
    2, 16 Stat. 595.
      Provision of R.S. Sec. 2793 respecting payment of entry and
    clearance fee is classified to section 111 of this Appendix, and
    section 288 of Title 19, Customs Duties.
 
-MISC3-
                                 AMENDMENTS
      1996 - Pub. L. 104-324 substituted ''registry endorsement,
    engaged in foreign trade on the Great Lakes or their tributary or
    connecting waters in trade with Canada,'' for ''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,'' and struck out '', as if from or
    to foreign ports'' after ''tonnage tax''.
      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-
                              CROSS REFERENCES
      Vessels not required to make entry, see section 1441 of Title 19,
    Customs Duties.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 124                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 124. Passenger vessels trading between ports of United States
        and foreign ports
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 2792; May 28, 1908, ch. 212, Sec. 1, 35 Stat. 424.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 2792 derived from act June 4, 1872, ch. 280, 17 Stat.
    214.
      Provisions of R.S. Sec. 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. Sec. 2792
    by act May 28, 1908, was also classified, in part, to section 112
    of former Title 46 and section 289 of Title 19.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 125                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 125. Vessels making daily trips on interior waters
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4221.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4221 derived from act Mar. 3, 1869, ch. 125, Sec. 3, 15
    Stat. 322.
      Provision of R.S. Sec. 4221 respecting clearance fees was
    classified to section 113 of former Title 46, Shipping.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 128                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 128. Light money
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4225; Mar. 4, 1915, ch. 171, Sec. 1, 38 Stat. 1193.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4225 derived from act Mar. 27, 1804, ch. 57, Sec. 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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 129 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 129                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 129. Exemption of unregistered vessels owned by citizens
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4226.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 132                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 132. Vessels not entering by sea
 
-STATUTE-
      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
    through 2002, 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.
 
-SOURCE-
    (Mar. 8, 1910, ch. 86, 36 Stat. 234; Pub. L. 101-508, title X, Sec.
    10402(b), Nov. 5, 1990, 104 Stat. 1388-399; Pub. L. 103-66, title
    IX, Sec. 9001(b), Aug. 10, 1993, 107 Stat. 402; Pub. L. 105-33,
    title IX, Sec. 9201(b), Aug. 5, 1997, 111 Stat. 671.)
 
-MISC1-
                                 AMENDMENTS
      1997 - Pub. L. 105-33 which directed substitution of ''for fiscal
    years 1991 through 2002,'' for ''for fiscal years 1991, 1992, 1993,
    1994, 1995, 1996, 1997, 1998,'', was executed by making the
    substitution for ''for fiscal years 1991, 1992, 1993, 1994, 1995,
    1996, 1997, and 1998,'' to reflect the probable intent of Congress.
      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''.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 133                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 133. Hospital ships in time of war
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 24, 1908, ch. 96, Sec. 1, 35 Stat. 46.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 134 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 134                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 134. Designation by President of hospital ships exempted
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 24, 1908, ch. 96, Sec. 2, 35 Stat. 46.)
 
-TRANS-
                          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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 135                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 4 - TONNAGE DUTIES
 
-HEAD-
    Sec. 135. Rights under treaties preserved
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4227.)
 
-REFTEXT-
                             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. Sec. 4131 to 4305. For complete classification
    of R.S. Sec. 4131 to 4305 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4227 derived from acts Apr. 27, 1816, ch. 107, Sec. 6,
    3 Stat. 314; Jan. 14, 1817, ch. 3, Sec. 1, 3 Stat. 344; July 14,
    1862, ch. 163, Sec. 15, 12 Stat. 558.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 5 - DISCRIMINATING
                  DUTIES AND RECIPROCAL PRIVILEGES               01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
    .
 
-HEAD-
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
 
-MISC1-
    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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 141                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
 
-HEAD-
    Sec. 141. Suspension by President
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4228; July 24, 1897, ch. 13, 30 Stat. 214.)
 
-REFTEXT-
                             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, Sec. 1, 47 Stat. 1430. See section 146 of
    this Appendix.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4228 derived from acts May 24, 1828, ch. 111, Sec. 1, 4
    Stat. 308; May 31, 1830, ch. 219, Sec. 2, 4 Stat. 425; July 13,
    1832, ch. 207, Sec. 3, 4 Stat. 579.
      Act July 24, 1897, added proviso.
 
-TRANS-
                          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.
 
-MISC5-
                     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. Sec. 4.22.
 
-EXEC-
                           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-
                              CROSS REFERENCES
      Discriminating duty on goods imported in foreign vessels,
    exception, see section 128 of Title 19, Customs Duties.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 142                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
 
-HEAD-
    Sec. 142. Retaliatory suspension of commercial privileges to
        foreign vessels
 
-STATUTE-
      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.
 
-SOURCE-
    (June 19, 1886, ch. 421, Sec. 17, 24 Stat. 82.)
 
-CROSS-
                              CROSS REFERENCES
      Principals, see section 2 of Title 18, Crimes and Criminal
    Procedure.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 143                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
 
-HEAD-
    Sec. 143. Retaliation on denial of rights to United States vessels
        in British North America
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1887, ch. 339, 24 Stat. 475.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 144                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
 
-HEAD-
    Sec. 144. Suspension of free passage through Saint Marys Falls
        Canal; tolls
 
-STATUTE-
      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.
 
-SOURCE-
    (July 26, 1892, ch. 248, Sec. 1, 27 Stat. 267.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 145 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 145                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
 
-HEAD-
    Sec. 145. Collection of tolls
 
-STATUTE-
      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.
 
-SOURCE-
    (July 26, 1892, ch. 248, Sec. 2, 27 Stat. 268; Feb. 14, 1903, ch.
    552, Sec. 10, 32 Stat. 829; Mar. 4, 1913, ch. 141, Sec. 1, 37 Stat.
    736; 1946 Reorg. Plan No. 3, Sec. 101-104, eff.  July 16, 1946, 11
    F.R. 7875, 60 Stat. 1097.)
 
-TRANS-
                           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, Sec. 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, Sec.
    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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 146                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 5 - DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
 
-HEAD-
    Sec. 146. Discriminating duty on merchandise imported in foreign
        vessels; exception
 
-STATUTE-
      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.
 
-SOURCE-
    (Oct. 3, 1913, ch. 16, Sec. IV, J, subsec. 1, 38 Stat. 195; Mar. 4,
    1915, ch. 171, Sec. 1, 38 Stat. 1193; June 17, 1930, ch. 497, title
    IV, Sec. 651(d)(1), 46 Stat. 763; Pub. L. 103-182, title VI, Sec.
    689(a)(1), Dec. 8, 1993, 107 Stat. 2222.)
 
-COD-
                                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, Sec. 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. Sec. 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, Sec. 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.
 
-MISC3-
                                 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-
                              CROSS REFERENCES
      Authority to suspend operation of section, see section 141 of
    this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 6 - REGULATION AS TO
                  VESSELS CARRYING STEERAGE PASSENGERS           01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 6 - REGULATION AS TO VESSELS CARRYING STEERAGE PASSENGERS
    .
 
-HEAD-
    CHAPTER 6 - REGULATION AS TO VESSELS CARRYING STEERAGE PASSENGERS
 
-MISC1-
    Sec.
    163. Regulations as to boarding arriving vessels before inspection.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 163                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 6 - REGULATION AS TO VESSELS CARRYING STEERAGE PASSENGERS
 
-HEAD-
    Sec. 163. Regulations as to boarding arriving vessels before
        inspection
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 31, 1900, ch. 120, Sec. 1-3, 31 Stat. 58; Feb. 14, 1903, ch.
    552, Sec. 10, 32 Stat. 829; Mar. 4, 1913, ch. 141, Sec. 1, 37 Stat.
    736; 1946 Reorg. Plan No. 3, Sec. 101, eff.  July 16, 1946, 11 F.R.
    7875, 60 Stat. 1097.)
 
-REFTEXT-
                             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, Sec. 4(b), Aug. 26, 1983, 97 Stat. 600.
 
-COD-
                                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.
 
-MISC3-
                               EFFECTIVE DATE
      Section 4 of act Mar. 31, 1900, provided: ''That this Act
    (enacting this section) shall take effect thirty days after its
    passage.''
 
-TRANS-
                           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, Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 8 - LIMITATION OF
                  VESSEL OWNER'S LIABILITY                       01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
    .
 
-HEAD-
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-MISC1-
    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.
                  (g) Vicarious liability for medical malpractice at
                        shoreside facilities; statutory limitations.
    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;
      contract limitations allowed.
    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-
                              CROSS REFERENCES
      Liability with respect to carriage of goods by sea, see section
    1300 et seq. of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 181                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 181. Liability of masters as carriers
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4281.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4281 derived from act Feb. 28, 1871, ch. 100, Sec. 69,
    16 Stat. 458.
 
-MISC3-
                                SHORT TITLE
      Sections 190 to 196 of this Appendix are popularly known as the
    ''Harter Act''.
 
-CROSS-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 196, 1308 of this
    Appendix; title 16 section 1443.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 182                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 182. Loss by fire
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4282.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4282 derived from act Mar. 3, 1851, ch. 43, Sec. 1, 9
    Stat. 635.
 
-CROSS-
                              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.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 183                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 183. Amount of liability
 
-STATUTE-
    (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.
    (g) Vicarious liability for medical malpractice at shoreside
        facilities; statutory limitations
      In a suit by any person in which the operator or owner of a
    vessel or employer of a crewmember is claimed to have vicarious
    liability for medical malpractice with regard to a crewmember
    occurring at a shoreside facility, and to the extent the damages
    resulted from the conduct of any shoreside doctor, hospital,
    medical facility, or other health care provider, such operator,
    owner, or employer shall be entitled to rely upon any and all
    statutory limitations of liability applicable to the doctor,
    hospital, medical facility, or other health care provider in the
    State of the United States in which the shoreside medical care was
    provided.
 
-SOURCE-
    (R.S. Sec. 4283; Aug. 29, 1935, ch. 804, Sec. 1, 49 Stat. 960; June
    5, 1936, ch. 521, Sec. 1, 49 Stat. 1479; Pub. L. 98-498, title II,
    Sec. 213(a), Oct. 19, 1984, 98 Stat. 2306; Pub. L. 104-324, title
    XI, Sec. 1129(a), Oct. 19, 1996, 110 Stat. 3984.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4283 derived from act Mar. 3, 1851, ch. 43, Sec. 3, 9
    Stat. 635.
 
-MISC3-
                                 AMENDMENTS
      1996 - Subsec. (g). Pub. L. 104-324 added subsec. (g).
      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-
                              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.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 183b                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 183b. Stipulations limiting time for filing claims and
        commencing suit
 
-STATUTE-
    (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.
 
-SOURCE-
    (R.S. Sec. 4283A, as added Aug. 29, 1935, ch. 804, Sec. 3, 49 Stat.
    960.)
 
-CROSS-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 183, 188, 1308 of this
    Appendix; title 16 section 1443.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 183c                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 183c. Stipulations limiting liability for negligence invalid;
        contract limitations allowed
 
-STATUTE-
      (a) 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.
      (b)(1) Subsection (a) of this section shall not prohibit
    provisions or limitations in contracts, agreements, or ticket
    conditions of carriage with passengers which relieve a crewmember,
    manager, agent, master, owner, or operator of a vessel from
    liability for infliction of emotional distress, mental suffering,
    or psychological injury so long as such provisions or limitations
    do not limit such liability if the emotional distress, mental
    suffering, or psychological injury was -
        (A) the result of physical injury to the claimant caused by the
      negligence or fault of a crewmember or the manager, agent,
      master, owner, or operator;
        (B) the result of the claimant having been at actual risk of
      physical injury, and such risk was caused by the negligence or
      fault of a crewmember or the manager, agent, master, owner, or
      operator; or
        (C) intentionally inflicted by a crewmember or the manager,
      agent, master, owner, or operator.
      (2) Nothing in this subsection is intended to limit the liability
    of a crewmember or the manager, agent, master, owner, or operator
    of a vessel in a case involving sexual harassment, sexual assault,
    or rape.
 
-SOURCE-
    (R.S. Sec. 4283B, as added June 5, 1936, ch. 521, Sec. 2, 49 Stat.
    1480; amended Pub. L. 102-587, title III, Sec. 3006, Nov. 4, 1992,
    106 Stat. 5068; Pub. L. 103-206, title III, Sec. 309, Dec. 20,
    1993, 107 Stat. 2425; Pub. L. 104-324, title XI, Sec. 1129(b), Oct.
    19, 1996, 110 Stat. 3984.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Pub. L. 104-324 designated existing provisions as subsec.
    (a) and added subsec. (b).
      1993 - Cl. (2). Pub. L. 103-206 substituted ''court'' for ''any
    court''.
      1992 - Cl. (2). Pub. L. 102-587 inserted ''any'' before
    ''court''.
 
-CROSS-
                              CROSS REFERENCES
      Vessels within application of this section, see section 188 of
    this Appendix.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 188, 1308 of this
    Appendix; title 16 section 1443.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 184                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 184. Apportionment of compensation
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4284; Feb. 27, 1877, ch. 69, Sec. 1, 19 Stat. 251.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4284 derived from act Mar. 3, 1851, ch. 43, Sec. 4, 9
    Stat. 635.
      Act Feb. 27, 1877, amended R.S. Sec. 4284 by substituting the
    word ''owners'' for ''owner'' in the expression ''freighters and
    owners of the property''.
 
-CROSS-
                              CROSS REFERENCES
      Remedies reserved, see section 187 of this Appendix.
      Vessels within application of this section, see section 188 of
    this Appendix.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 185                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 185. Petition for limitation of liability; deposit of value of
        interest in court; transfer of interest to trustee
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4285; June 5, 1936, ch. 521, Sec. 3, 49 Stat. 1480.)
 
-REFTEXT-
                             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.
    Sec. 4252 to 4289. For complete classification of R.S. Sec. 4252 to
    4289 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4285 derived from act Mar. 3, 1851, ch. 43, Sec. 4, 9
    Stat. 635.
 
-MISC3-
                                 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-
                              CROSS REFERENCES
      Remedies reserved, see section 187 of this Appendix.
      Vessels within application of this section, see section 188 of
    this Appendix.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 186                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 186. Charterer may be deemed owner
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4286.)
 
-REFTEXT-
                             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. Sec. 4131 to 4305. For complete classification
    of R.S. Sec. 4131 to 4305 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4286 derived from act Mar. 3, 1851, ch. 43, Sec. 5, 9
    Stat. 636.
 
-CROSS-
                              CROSS REFERENCES
      Remedies reserved, see section 187 of this Appendix.
      Vessels within application of this section, see section 188 of
    this Appendix.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 187                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 187. Remedies reserved
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4287.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4287 derived from act Mar. 3, 1851, ch. 43, Sec. 6, 9
    Stat. 636.
 
-CROSS-
                              CROSS REFERENCES
      Vessels within application of this section, see section 188 of
    this Appendix.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 188                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 188. Limitation of liability of owners applied to all vessels
 
-STATUTE-
      Except as otherwise specifically provided therein, the provisions
    of sections 175, (FOOTNOTE 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.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (R.S. Sec. 4289; Feb. 18, 1875, ch. 80, Sec. 1, 18 Stat. 320; June
    19, 1886, ch. 421, Sec. 4, 24 Stat. 80; June 5, 1936, ch. 521, Sec.
    4, 49 Stat. 1481.)
 
-REFTEXT-
                             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. Sec. 4282-4283B and 4284-4288.
      Section 175 of this Appendix, referred to in text, was repealed
    by act Oct. 9, 1940, ch. 777, Sec. 7, 54 Stat. 1028.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4289 derived from act Mar. 3, 1851, ch. 43, Sec. 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, Sec. 18, 23
    Stat. 57, classified to section 189 of this Appendix, by act June
    19, 1886.
 
-MISC3-
                                 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''.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 189                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 189. Limitation of liability of owners of vessels for debts
 
-STATUTE-
      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.
 
-SOURCE-
    (June 26, 1884, ch. 121, Sec. 18, 23 Stat. 57.)
 
-COD-
                                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-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 188 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 190                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 190. Stipulations relieving from liability for negligence
 
-STATUTE-
      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.
 
-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 1, 27 Stat. 445.)
 
-MISC1-
                                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-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 194, 195, 196, 1311 of
    this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 191                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 191. Stipulations relieving from exercise of due diligence in
        equipping vessels
 
-STATUTE-
      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 (FOOTNOTE 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.
       (FOOTNOTE 1) So in original.  Probably should be followed by
    ''to''.
 
-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 2, 27 Stat. 445.)
 
-MISC1-
                               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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 194, 196, 1311 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 192                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 192. Limitation of liability for errors of navigation, dangers
        of sea and acts of God
 
-STATUTE-
      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.
 
-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 3, 27 Stat. 445.)
 
-MISC1-
                               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-
                              CROSS REFERENCES
      Liabilities and immunities of carrier and ship, see section 1304
    of this Appendix.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 194, 196, 1311 of this
    Appendix; title 16 section 1443.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 193                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 193. Bills of lading to be issued; contents
 
-STATUTE-
      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.
 
-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 4, 27 Stat. 445.)
 
-MISC1-
                               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-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 194, 195, 196, 1311 of
    this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 194                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 194. Penalties; liens; recovery
 
-STATUTE-
      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.
 
-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 5, 27 Stat. 446.)
 
-MISC1-
                               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-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 196, 1311 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 195                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 195. Certain provisions inapplicable to transportation of live
        animals
 
-STATUTE-
      Sections 190 and 193 of this Appendix shall not apply to the
    transportation of live animals.
 
-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 7, 27 Stat. 446.)
 
-MISC1-
                               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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 194, 196, 1311 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 196                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 8 - LIMITATION OF VESSEL OWNER'S LIABILITY
 
-HEAD-
    Sec. 196. Certain laws unaffected
 
-STATUTE-
      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.
 
-SOURCE-
    (Feb. 13, 1893, ch. 105, Sec. 6, 27 Stat. 446.)
 
-MISC1-
                               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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 194, 1311 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 12 - REGULATION OF
                  VESSELS IN DOMESTIC COMMERCE                   01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
    .
 
-HEAD-
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-MISC1-
    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-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 251                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 251. Vessels employed in coasting trade or fisheries
 
-STATUTE-
    (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.
 
-SOURCE-
    (R.S. Sec. 4311; Sept. 2, 1950, ch. 842, 64 Stat. 577; Pub. L.
    87-220, Sec. 1, Sept. 13, 1961, 75 Stat. 493; Pub. L. 96-61, Sec.
    2, Aug. 15, 1979, 93 Stat. 407; Pub. L. 96-594, title I, Sec.
    126(b), Dec. 24, 1980, 94 Stat. 3459; Pub. L. 100-239, Sec. 8(a),
    Jan. 11, 1988, 101 Stat. 1783.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4311 derived from acts Feb. 18, 1793, ch. 8, Sec. 1, 1
    Stat. 305; Apr. 18, 1874, ch. 110, 18 Stat. 31.
 
-MISC3-
                                 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-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 251a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 251a. Remission or mitigation of fines, penalties or
        forfeitures
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 87-220, Sec. 2, Sept. 13, 1961, 75 Stat. 493.)
 
-REFTEXT-
                             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, Sec. 2(b), Aug. 26, 1983, 97 Stat. 598,
    section 1 of which enacted Title 46, Shipping.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 251b                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 251b. Regulations
 
-STATUTE-
      The Secretary of the Treasury may issue such regulations as he
    deems necessary for the enforcement of the provisions of this Act.
 
-SOURCE-
    (Pub. L. 87-220, Sec. 3, Sept. 13, 1961, 75 Stat. 493.)
 
-REFTEXT-
                             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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 262                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 262. Trade of documented vessel not to defraud revenue laws
 
-STATUTE-
      No documented vessel shall be employed in any trade whereby the
    revenue laws of the United States shall be defrauded.
 
-SOURCE-
    (R.S. Sec. 4320; Feb. 27, 1877, ch. 69, Sec. 1, 19 Stat. 251; Jan.
    16, 1895, ch. 24, Sec. 3, 28 Stat. 625; Pub. L. 96-594, title I,
    Sec. 126(c), Dec. 24, 1980, 94 Stat. 3459.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4320 derived from act Feb. 18, 1793, ch. 8, Sec. 4, 1
    Stat. 306.
      R.S. Sec. 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.
 
-MISC3-
                                 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-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 277                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 277. Inspection of documents
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4336; Aug. 5, 1935, ch. 438, title III, Sec. 312, 49
    Stat. 528; Pub. L. 85-237, Sec. 2, Aug. 30, 1957, 71 Stat. 518;
    Pub. L. 103-182, title VI, Sec. 686(a)(5), Dec. 8, 1993, 107 Stat.
    2220.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4336 derived from act Feb. 18, 1793, ch. 8, Sec. 13, 1
    Stat. 309.
 
-MISC3-
                                 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 the
    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-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 289                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 289. Transportation of passengers in foreign vessels
 
-STATUTE-
      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.
 
-SOURCE-
    (June 19, 1886, ch. 421, Sec. 8, 24 Stat. 81; Feb. 17, 1898, ch.
    26, Sec. 2, 30 Stat. 248.)
 
-MISC1-
                                 AMENDMENTS
      1886 - Act Feb. 17, 1898, amended section generally, increasing
    from $2 to $200 the penalty for transporting passengers in foreign
    vessels.
 
-CROSS-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 289a, 320 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 289a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 289a. Transportation of passengers in Canadian vessels between
        Rochester and Alexandria Bay
 
-STATUTE-
      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.
 
-SOURCE-
    (Apr. 26, 1938, ch. 174, 52 Stat. 223; 1946 Reorg. Plan No. 3, Sec.
    101-104, eff.  July 16, 1946, 11 F.R. 7875, 60 Stat. 1097.)
 
-TRANS-
                           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, Sec. 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, Sec.
    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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 289b                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 289b. Transportation of passengers and merchandise in Canadian
        vessels between points in Alaska and United States
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 87-77, June 30, 1961, 75 Stat. 196; Pub. L. 97-31, Sec.
    12(22), Aug. 6, 1981, 95 Stat. 155.)
 
-MISC1-
                                 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 289c                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 289c. Transportation of passengers between Puerto Rico and
        other United States ports; foreign-flag vessels; unavailability
        of United States flag service
 
-STATUTE-
    (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.
 
-SOURCE-
    (Pub. L. 98-563, Oct. 30, 1984, 98 Stat. 2916.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 290                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 290. Omitted
 
-COD-
                                CODIFICATION
      Section, act Feb. 17, 1898, ch. 26, Sec. 1, 30 Stat. 248, related
    to transportation of merchandise in foreign vessels.  See section
    883 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 291                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 291. Transshipment of imported merchandise intended for
        immediate exportation
 
-STATUTE-
      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.
 
-SOURCE-
    (Feb. 17, 1898, ch. 26, Sec. 3, 30 Stat. 248.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 446b of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 292                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 292. Vessels that may engage in dredging
 
-STATUTE-
    (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.
 
-SOURCE-
    (May 28, 1906, ch. 2566, Sec. 1, 34 Stat. 204; Pub. L. 102-587,
    title V, Sec. 5501(a)(1), Nov. 4, 1992, 106 Stat. 5084.)
 
-MISC1-
                                 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.''
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 316                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 316. Use of foreign vessels in United States ports
 
-STATUTE-
    (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 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).
 
-SOURCE-
    (R.S. Sec. 4370; June 11, 1940, ch. 324, 54 Stat. 304; 1946 Reorg.
    Plan No. 3, Sec. 101-104, eff.  July 16, 1946, 11 F.R. 7875, 60
    Stat. 1097; Pub. L. 99-307, Sec. 10, May 19, 1986, 100 Stat. 447;
    Pub. L. 100-329, Sec. 2, June 7, 1988, 102 Stat. 589; Pub. L.
    104-324, title XI, Sec. 1115(b)(3), Oct. 19, 1996, 110 Stat. 3972.)
 
-REFTEXT-
                             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, Sec. 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.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4370 derived from acts July 18, 1866, ch. 201, Sec. 21,
    14 Stat. 183; Feb. 25, 1867, ch. 78, 14 Stat. 410.
 
-MISC3-
                                 AMENDMENTS
      1996 - Subsec. (a). Pub. L. 104-324 struck out ''or 12107'' after
    ''section 12106''.
      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).
 
-TRANS-
                           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, Sec. 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, Sec. 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.
 
-MISC5-
           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.
 
-CROSS-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 883-1 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 319                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 319. Civil penalties for trading without required certificate
        of documentation
 
-STATUTE-
      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.
 
-SOURCE-
    (June 19, 1886, ch. 421, Sec. 7, 24 Stat. 81; Aug. 5, 1935, ch.
    438, title III, Sec. 314, 49 Stat. 529; Pub. L. 96-594, title I,
    Sec. 126(e), Dec. 24, 1980, 94 Stat. 3459.)
 
-MISC1-
                                 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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 320 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 320                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 320. Remission or mitigation of fines
 
-STATUTE-
      The fines imposed by sections 5 (FOOTNOTE 1) and 6 (FOOTNOTE 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.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (June 19, 1886, ch. 421, Sec. 9, 24 Stat. 81; Feb. 14, 1903, ch.
    552, Sec. 10, 32 Stat. 829; Mar. 4, 1913, ch. 141, Sec. 1, 37 Stat.
    736; 1946 Reorg. Plan No. 3, Sec. 101-104, eff.  July 16, 1946, 11
    F.R. 7875, 60 Stat. 1097.)
 
-REFTEXT-
                             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, Sec.
    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, Sec. 127, Dec. 24,
    1980, 94 Stat. 3459.
 
-TRANS-
                           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, Sec. 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, Sec.
    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-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 321                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 321. Penalty for illegal enrollment or license
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4373; June 17, 1930, ch. 497, title IV, Sec. 523, 46
    Stat. 740; Aug. 8, 1953, ch. 397, Sec. 2(d), 67 Stat. 508.)
 
-REFTEXT-
                             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. Sec. 4311 to 4390. For complete classification
    of R.S. Sec. 4311 to 4390 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. 4373 derived from act Feb. 18, 1793, ch. 8, Sec. 29, 1 Stat.
    315.
 
-TRANS-
                           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, Sec. 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-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 322 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 322                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 322. Penalty for malfeasance
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4374.)
 
-REFTEXT-
                             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. Sec. 4311 to 4390. For complete classification
    of R.S. Sec. 4311 to 4390 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4374 derived from act Feb. 18, 1793, ch. 8, Sec. 29, 1
    Stat. 315.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 323                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 323. Penalty for forgery and alteration
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4375.)
 
-REFTEXT-
                             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. Sec. 4311 to 4390. For complete classification
    of R.S. Sec. 4311 to 4390 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4375 derived from act Feb. 18, 1793, ch. 8, Sec. 30, 1
    Stat. 316.
 
-CROSS-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 324                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 324. Penalty for obstructing officers
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4376.)
 
-REFTEXT-
                             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. Sec. 4311 to 4390. For complete classification
    of R.S. Sec. 4311 to 4390 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4376 derived from act Feb. 18, 1793, ch. 8, Sec. 31, 1
    Stat. 316.
 
-CROSS-
                              CROSS REFERENCES
      Assault, penalty, see section 111 et seq. of Title 18, Crimes and
    Criminal Procedure.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 326                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 326. Exemption from forfeiture
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4378.)
 
-REFTEXT-
                             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. Sec. 4311 to 4390. For complete classification
    of R.S. Sec. 4311 to 4390 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4378 derived from act Feb. 18, 1793, ch. 8, Sec. 33, 1
    Stat. 316.
 
-CROSS-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 327                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 327. Notice of seizure
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4379.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4379 derived from act Feb. 18, 1793, ch. 8, Sec. 28, 1
    Stat. 315.
 
-TRANS-
                           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-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 328                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 328. Recovery of forfeitures and penalties
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4380.)
 
-REFTEXT-
                             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. Sec. 4311 to 4390. For complete classification
    of R.S. Sec. 4311 to 4390 to the Code, see Tables.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4380 derived from act Feb. 18, 1793, ch. 8, Sec. 35, 1
    Stat. 317.
 
-CROSS-
                              CROSS REFERENCES
      Enforcement of penalties and forfeitures under the customs laws,
    see section 1581 et seq. of Title 19, Customs Duties.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 336                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 12 - REGULATION OF VESSELS IN DOMESTIC COMMERCE
 
-HEAD-
    Sec. 336. Canal boats exempt from enrollment, license, and customs
        fees
 
-STATUTE-
      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.
 
-SOURCE-
    (Apr. 18, 1874, ch. 110, 18 Stat. 31.)
 
-REFTEXT-
                             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. Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 13 - PASSPORTS AND
                  PAPERS OF VESSELS ENGAGED IN FOREIGN
                  COMMERCE                                       01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 13 - PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN
         COMMERCE
    .
 
-HEAD-
    CHAPTER 13 - PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN
    COMMERCE
 
-MISC1-
    Sec.
    354. Deposit of ship's papers with consul.
    355. Penalty for failure.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 354                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 13 - PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN
         COMMERCE
 
-HEAD-
    Sec. 354. Deposit of ship's papers with consul
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4309; Apr. 5, 1906, ch. 1366, Sec. 3, 34 Stat. 100.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4309 derived from act Feb. 28, 1803, ch. 9, Sec. 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-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 355 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 355                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 13 - PASSPORTS AND PAPERS OF VESSELS ENGAGED IN FOREIGN
         COMMERCE
 
-HEAD-
    Sec. 355. Penalty for failure
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4310; Apr. 5, 1906, ch. 1366, Sec. 3, 34 Stat. 100.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4310 derived from act Feb. 28, 1803, ch. 9, Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 14 - INSPECTION OF
                  STEAM VESSELS                                  01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    .
 
-HEAD-
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
 
-MISC1-
              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER VII - OCEANOGRAPHIC
                  RESEARCH VESSELS                               01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS
    .
 
-HEAD-
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 441                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS
 
-HEAD-
    Sec. 441. Exemption of oceanographic research vessels from
        inspection laws; definitions
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 89-99, Sec. 1, July 30, 1965, 79 Stat. 424.)
 
-STATAMEND-
                                RESTATEMENT
        Section was restated in part in section 2101(18), (31) of Title
      46, Shipping, as enacted by Pub. L. 98-89.
 
-TRANS-
                           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, Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 443                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS
 
-HEAD-
    Sec. 443. Vessel not engaged in trade or commerce
 
-STATUTE-
      An oceanographic research vessel shall not be deemed to be
    engaged in trade or commerce.
 
-SOURCE-
    (Pub. L. 89-99, Sec. 3, July 30, 1965, 79 Stat. 424.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 444                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VII - OCEANOGRAPHIC RESEARCH VESSELS
 
-HEAD-
    Sec. 444. Scientific personnel not considered seamen
 
-STATUTE-
      Scientific personnel on an oceanographic research vessel shall
    not be considered seamen under the provisions of title 53 of the
    Revised Statutes and Act (FOOTNOTE 1) amendatory thereof or
    supplementary thereto.
       (FOOTNOTE 1) So in original.  Probably should be ''Acts''.
 
-SOURCE-
    (Pub. L. 89-99, Sec. 4, July 30, 1965, 79 Stat. 424.)
 
-STATAMEND-
                                RESTATEMENT
        Section was restated in part in section 8701(a)(5) of Title 46,
      Shipping, as enacted by Pub. L. 98-89.
 
-REFTEXT-
                             REFERENCES IN TEXT
      Title 53 of the Revised Statutes, referred to in text, consisted
    of R.S. Sec. 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. Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER VIII - SAILING
                  SCHOOL VESSELS                                 01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS
    .
 
-HEAD-
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 446                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS
 
-HEAD-
    Sec. 446. Sailing school students and sailing school instructors
        without seamen status under steam-vessel and merchant seamen
        provisions or maritime law doctrines
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 97-322, title II, Sec. 204, Oct. 15, 1982, 96 Stat. 1589.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Title 52 of the Revised Statutes, referred to in text, consisted
    of R.S. Sec. 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. Sec. 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. Sec. 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. Sec. 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.
 
-MISC2-
                               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'.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 446c of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 446a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS
 
-HEAD-
    Sec. 446a. Financial responsibility; minimum amount; evidence
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 97-322, title II, Sec. 205, Oct. 15, 1982, 96 Stat. 1589.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 446c of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 446b                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS
 
-HEAD-
    Sec. 446b. Sailing school vessel without status of merchant vessel
        or vessel engaged in trade or commerce
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 97-322, title II, Sec. 206, Oct. 15, 1982, 96 Stat. 1590;
    Pub. L. 98-557, Sec. 34(b), Oct. 30, 1984, 98 Stat. 2876.)
 
-MISC1-
                                 AMENDMENTS
      1984 - Pub. L. 98-557 inserted reference to section 11101(a)-(c)
    of title 46.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 446c of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 446c                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 14 - INSPECTION OF STEAM VESSELS
    SUBCHAPTER VIII - SAILING SCHOOL VESSELS
 
-HEAD-
    Sec. 446c. Definitions
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 97-322, title II, Sec. 207, Oct. 15, 1982, 96 Stat. 1590.)
 
-REFTEXT-
                             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, Sec.
    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.
 
-COD-
                                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, Sec. 2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of
    which enacted Title 46, Shipping.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 15 - TRANSPORTATION OF
                  PASSENGERS AND MERCHANDISE BY STEAM VESSELS    01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 15 - TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM
         VESSELS
    .
 
-HEAD-
    CHAPTER 15 - TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM
    VESSELS
 
-MISC1-
    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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 466c                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 15 - TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM
         VESSELS
 
-HEAD-
    Sec. 466c. Export of horses
 
-STATUTE-
    (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.
 
-SOURCE-
    (Mar. 3, 1891, ch. 521, Sec. 3, as added Pub. L. 99-64, title I,
    Sec. 125, July 12, 1985, 99 Stat. 156.)
 
-MISC1-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 491                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 15 - TRANSPORTATION OF PASSENGERS AND MERCHANDISE BY STEAM
         VESSELS
 
-HEAD-
    Sec. 491. Liability of master and owners for damage to passengers
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4493.)
 
-REFTEXT-
                             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. Sec. 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. Sec. 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.
 
-COD-
                                CODIFICATION
      R.S. Sec. 4493 derived from act Feb. 28, 1871, ch. 100, Sec. 43,
    16 Stat. 453.
 
-CROSS-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 18 - MERCHANT SEAMEN      01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 18 - MERCHANT SEAMEN
    .
 
-HEAD-
    CHAPTER 18 - MERCHANT SEAMEN
 
-MISC1-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER VII - PROTECTION
                  AND RELIEF                                     01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 18 - MERCHANT SEAMEN
    SUBCHAPTER VII - PROTECTION AND RELIEF
    .
 
-HEAD-
    SUBCHAPTER VII - PROTECTION AND RELIEF
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 688                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 18 - MERCHANT SEAMEN
    SUBCHAPTER VII - PROTECTION AND RELIEF
 
-HEAD-
    Sec. 688. Recovery for injury to or death of seaman
 
-STATUTE-
    (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)
      (FOOTNOTE 1) vessel constructed or adapted primarily to carry oil
      in bulk in the cargo spaces; and
       (FOOTNOTE 1) So in original.  Probably should be ''a''.
        (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.
 
-SOURCE-
    (Mar. 4, 1915, ch. 153, Sec. 20, 38 Stat. 1185; June 5, 1920, ch.
    250, Sec. 33, 41 Stat. 1007; Pub. L. 97-389, title V, Sec. 503(a),
    Dec. 29, 1982, 96 Stat. 1955.)
 
-REFTEXT-
                             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 (Sec. 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.
 
-MISC2-
                                 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-
                              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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 33 section 903.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 19 - WRECKS AND
                  SALVAGE                                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    .
 
-HEAD-
    CHAPTER 19 - WRECKS AND SALVAGE
 
-MISC1-
                          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-
                              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.
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER I - GENERALLY          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
    .
 
-HEAD-
    SUBCHAPTER I - GENERALLY
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 721                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 721. Vessels stranded on foreign coasts
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4238.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4238 derived from act Apr. 14, 1792, ch. 24, Sec. 3, 1
    Stat. 255.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 722                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 722. Property wrecked on Florida coast
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4239.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4239 derived from act Mar. 3, 1825, ch. 107, Sec. 2, 4
    Stat. 133.
 
-CROSS-
                              CROSS REFERENCES
      Free importation of merchandise recovered from sunken and
    abandoned vessels, see section 1310 of Title 19, Customs Duties.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 723                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 723. Forfeitures for taking wrecked property to foreign ports
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4240.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4240 derived from act Mar. 3, 1825, ch. 107, Sec. 1, 4
    Stat. 132.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 724                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 724. License to wreckers on Florida coast
 
-STATUTE-
      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.
 
-SOURCE-
    (R.S. Sec. 4241.)
 
-COD-
                                CODIFICATION
      R.S. Sec. 4241 derived from act Feb. 23, 1847, ch. 20, Sec. 3, 9
    Stat. 131.
 
-MISC3-
             DIVISION OF FLORIDA INTO THREE JUDICIAL DISTRICTS
      Florida divided into three judicial districts, see section 89 of
    Title 28, Judiciary and Judicial Procedure.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 725                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 725. Canadian vessels aiding vessels wrecked or disabled in
        United States waters
 
-STATUTE-
      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.
 
-SOURCE-
    (June 19, 1878, ch. 324, 20 Stat. 175; May 24, 1890, ch. 292, 26
    Stat. 120; Mar. 3, 1893, ch. 211, Sec. 1, 27 Stat. 683.)
 
-COD-
                                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-
                              CROSS REFERENCES
      Use of foreign tugboats in United States prohibited, see section
    316 of this Appendix.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 316 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 726                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 726. International agreement as to derelicts
 
-STATUTE-
      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.
 
-SOURCE-
    (Oct. 31, 1893, No. 13, 28 Stat. 13.)
 
-CROSS-
                              CROSS REFERENCES
      International agreements as to ice patrol and derelict
    destruction, see section 738 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 727                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 727. Right to salvage not affected by ownership of vessel
 
-STATUTE-
      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.
 
-SOURCE-
    (Aug. 1, 1912, ch. 268, Sec. 1, 37 Stat. 242.)
 
-MISC1-
                               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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 731 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 729                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 729. Salvors of life to share in remuneration
 
-STATUTE-
      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.
 
-SOURCE-
    (Aug. 1, 1912, ch. 268, Sec. 3, 37 Stat. 242; Pub. L. 102-241, Sec.
    40(a), Dec. 19, 1991, 105 Stat. 2225.)
 
-MISC1-
                                 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''.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 731 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 730                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 730. Time limit for salvage suits
 
-STATUTE-
      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.
 
-SOURCE-
    (Aug. 1, 1912, ch. 268, Sec. 4, 37 Stat. 242.)
 
-CROSS-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 731 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 731                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER I - GENERALLY
 
-HEAD-
    Sec. 731. Applicability to ships of war
 
-STATUTE-
      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.
 
-SOURCE-
    (Aug. 1, 1912, ch. 268, Sec. 5, 37 Stat. 242; Pub. L. 102-241, Sec.
    40(b), Dec. 19, 1991, 105 Stat. 2225.)
 
-MISC1-
                                 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''.
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER III - ICE AND
                  DERELICTS                                      01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER III - ICE AND DERELICTS
    .
 
-HEAD-
    SUBCHAPTER III - ICE AND DERELICTS
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 738                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER III - ICE AND DERELICTS
 
-HEAD-
    Sec. 738. International agreements as to ice patrol and derelict
        destruction; allocation of expenses
 
-STATUTE-
      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.
 
-SOURCE-
    (June 25, 1936, ch. 807, Sec. 1, 49 Stat. 1922.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 738a of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 738a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER III - ICE AND DERELICTS
 
-HEAD-
    Sec. 738a. Patrol services
 
-STATUTE-
    (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.
 
-SOURCE-
    (June 25, 1936, ch. 807, Sec. 2, 49 Stat. 1922; Pub. L. 89-670,
    Sec. 6(b)(1), Oct. 15, 1966, 80 Stat. 938.)
 
-TRANS-
                           TRANSFER OF FUNCTIONS
      ''Secretary of Transportation'' substituted in subsec. (d) for
    ''Secretary of the Treasury'' on authority of Pub. L. 89-670, Sec.
    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, Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 738c                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19 - WRECKS AND SALVAGE
    SUBCHAPTER III - ICE AND DERELICTS
 
-HEAD-
    Sec. 738c. Speed of vessel in ice region; penalty
 
-STATUTE-
      (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.
 
-SOURCE-
    (June 25, 1936, ch. 807, Sec. 4, 49 Stat. 1923.)
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 19A - ADMIRALTY AND
                  MARITIME JURISDICTION                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19A - ADMIRALTY AND MARITIME JURISDICTION
    .
 
-HEAD-
    CHAPTER 19A - ADMIRALTY AND MARITIME JURISDICTION
 
-MISC1-
    Sec.
    740. Extension of admiralty and maritime jurisdiction; libel in rem
      or in personam; exclusive remedy; waiting period.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 740                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 19A - ADMIRALTY AND MARITIME JURISDICTION
 
-HEAD-
    Sec. 740. Extension of admiralty and maritime jurisdiction; libel
        in rem or in personam; exclusive remedy; waiting period
 
-STATUTE-
      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.
 
-SOURCE-
    (June 19, 1948, ch. 526, 62 Stat. 496.)
 
-REFTEXT-
                             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 (Sec. 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 (Sec. 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 (Sec. 2671 et seq.) of
    Title 28, Judiciary and Judicial Procedure.
 
-CROSS-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 14 sections 821, 823a.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 20 - SUITS IN
                  ADMIRALTY BY OR AGAINST VESSELS OR CARGOES
                  OF UNITED STATES                               01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
    .
 
-HEAD-
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
    UNITED STATES
 
-MISC1-
    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.
 
-SECREF-
                   CHAPTER REFERRED TO IN OTHER SECTIONS
      This chapter is referred to in sections 740, 782, 1247, 1292 of
    this Appendix; title 14 sections 821, 823a; title 28 section 2680;
    title 41 section 603; title 42 section 2212; title 50 App. section
    1291.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 741                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 741. Exemption of United States vessels and cargoes from
        arrest or seizure
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 1, 41 Stat. 525; Sept. 26, 1950, ch.
    1049, Sec. 2(a)(2), 64 Stat. 1038; Pub. L. 96-70, Sec. 3(b)(5),
    Sept. 27, 1979, 93 Stat. 455.)
 
-CHANGE-
                               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.
 
-MISC4-
                                SHORT TITLE
      Act Mar. 9, 1920, ch. 95, which enacted this chapter, is
    popularly known as the ''Suits in Admiralty Act''.
 
-CROSS-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 747 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 742                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 742. Libel in personam
 
-STATUTE-
      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.  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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 2, 41 Stat. 525; Pub. L. 86-770, Sec.
    3, Sept. 13, 1960, 74 Stat. 912; Pub. L. 104-324, title XI, Sec.
    1105, Oct. 19, 1996, 110 Stat. 3967.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-MISC2-
                                 AMENDMENTS
      1996 - Pub. L. 104-324 struck out ''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.'' after
    ''liability is found.''
      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).''
 
-CROSS-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 745, 749, 1242 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 743                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 743. Procedure in cases of libel in personam
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 3, 41 Stat. 526; Pub. L. 97-31, Sec.
    12(25)(A), Aug. 6, 1981, 95 Stat. 155.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-MISC2-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 struck out provisions relating to bonds or
    stipulations given prior to Mar. 9, 1920, in admiralty causes.
 
-CROSS-
                      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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 743a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 743a. Omitted
 
-COD-
                                CODIFICATION
      Section, act June 30, 1932, ch. 315, 47 Stat. 420, related to
    interest on claims.  See section 745 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 744                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 744. Release of privately owned vessel after seizure
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 4, 41 Stat. 526.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-CROSS-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 747, 748, 749 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 745                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 745. Causes of action for which suits may be brought;
        limitations; exceptions; actions which may not be revived;
        interest on claims
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 5, 41 Stat. 526; June 30, 1932, ch.
    315, 47 Stat. 420; Dec. 13, 1950, ch. 1136, 64 Stat. 1112.)
 
-MISC1-
                                 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-
                              CROSS REFERENCES
      Actions on war risk insurance claims, see section 1292 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 746                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 746. Exemptions and limitations of liability
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 6, 41 Stat. 527.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 747                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 747. Seizures in foreign jurisdictions
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 7, 41 Stat. 527; Pub. L. 97-31, Sec.
    12(25)(B), Aug. 6, 1981, 95 Stat. 155.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-MISC2-
                                 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.
 
-TRANS-
                           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,
    Sec. 204, title IX, Sec. 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-
                              CROSS REFERENCES
      Payment of judgment, award, or settlement, see section 748 of
    this Appendix.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 748 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 748                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 748. Payment of judgment, award, or settlement
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 8, 41 Stat. 527.)
 
-MISC1-
                               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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 749                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 749. Arbitration, compromise, or settlement of claims
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 9, 41 Stat. 527; Pub. L. 92-417, Sec.
    3, Aug. 29, 1972, 86 Stat. 656; Pub. L. 97-31, Sec. 12(25)(C), Aug.
    6, 1981, 95 Stat. 155.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-MISC2-
                                 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-
                              CROSS REFERENCES
      Payment of judgment, award, or settlement, see section 748 of
    this Appendix.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 748 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 750                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 750. Recovery for salvage services by vessel or crew
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 10, 41 Stat. 528; Pub. L. 97-31, Sec.
    12(25)(D), Aug. 6, 1981, 95 Stat. 155.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-MISC2-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 struck out reference to the United States
    Shipping Board.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 749 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 751                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 751. Disposition of moneys recovered by United States
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 11, 41 Stat. 528; Pub. L. 97-31, Sec.
    12(25)(D), Aug. 6, 1981, 95 Stat. 155.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such aforesaid corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-MISC2-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 struck out reference to the United States
    Shipping Board.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 752                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 20 - SUITS IN ADMIRALTY BY OR AGAINST VESSELS OR CARGOES OF
         UNITED STATES
 
-HEAD-
    Sec. 752. Reports as to awards and settlements
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 9, 1920, ch. 95, Sec. 12, 41 Stat. 528; Aug. 30, 1954, ch.
    1076, Sec. 1(26), 68 Stat. 968; Pub. L. 97-31, Sec. 12(25)(E), Aug.
    6, 1981, 95 Stat. 155.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Such aforesaid corporation, referred to in text, probably means a
    corporation mentioned in section 741 of this Appendix.
 
-MISC2-
                                 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 21 - DEATH ON HIGH
                  SEAS BY WRONGFUL ACT                           01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
    .
 
-HEAD-
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-MISC1-
    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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 761                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-HEAD-
    Sec. 761. Right of action; where and by whom brought
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 1, 41 Stat. 537.)
 
-MISC1-
                                SHORT TITLE
      Act Mar. 30, 1920, ch. 111, which enacted this chapter, is
    popularly know as the ''Death on the High Seas Act''.
 
-CROSS-
                              CROSS REFERENCES
      Death of plaintiff pending action, see section 765 of this
    Appendix.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 765 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 762                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-HEAD-
    Sec. 762. Amount and apportionment of recovery
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 2, 41 Stat. 537.)
 
-CROSS-
                              CROSS REFERENCES
      Death of plaintiff pending action, see section 765 of this
    Appendix.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 765 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 763a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-HEAD-
    Sec. 763a. Limitations
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 96-382, Sec. 1, Oct. 6, 1980, 94 Stat. 1525.)
 
-COD-
                                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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 764                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-HEAD-
    Sec. 764. Rights of action given by laws of foreign countries
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 4, 41 Stat. 537.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 765                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-HEAD-
    Sec. 765. Death of plaintiff pending action
 
-STATUTE-
      If a person die (FOOTNOTE 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.
       (FOOTNOTE 1) So in original.  Probably should be ''dies''.
 
-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 5, 41 Stat. 537.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 766                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-HEAD-
    Sec. 766. Contributory negligence
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 6, 41 Stat. 537.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 767                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-HEAD-
    Sec. 767. Exceptions from operation of chapter
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 30, 1920, ch. 111, Sec. 7, 41 Stat. 538.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of Canal Zone, referred to in text, see section
    3602(b) of Title 22, Foreign Relations and Intercourse.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 768                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 21 - DEATH ON HIGH SEAS BY WRONGFUL ACT
 
-HEAD-
    Sec. 768. Omitted
 
-COD-
                                CODIFICATION
      Section, act Mar. 30, 1920, ch. 111, Sec. 8, 41 Stat. 538,
    provided that this chapter should not affect suits pending on Mar.
    30, 1920.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 22 - SUITS IN
                  ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
                  CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR
                  SALVAGE SERVICES                               01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
    .
 
-HEAD-
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
    CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-MISC1-
    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-
                              CROSS REFERENCES
      Stay of judicial proceedings, see section 7721 et seq. of Title
    10, Armed Forces.
 
-SECREF-
                   CHAPTER REFERRED TO IN OTHER SECTIONS
      This chapter is referred to in section 740 of this Appendix;
    title 10 section 7721; title 14 sections 821, 823a; title 28
    section 2680; title 41 section 603; title 42 section 2212.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 781                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 781. Libel in admiralty against or impleader of United States
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 1, 43 Stat. 1112.)
 
-MISC1-
                                SHORT TITLE
      Act Mar. 3, 1925, ch. 428, which enacted this chapter, is
    popularly known as the ''Public Vessels Act''.
 
-CROSS-
                      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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 782                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 782. Venue of suit; application of provisions of chapter 20
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 2, 43 Stat. 1112.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 783                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 783. Cross libel, set-off, or counterclaim
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 3, 43 Stat. 1112.)
 
-CROSS-
                      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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 784                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 784. Subpoenas to officers or members of crews
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 4, 43 Stat. 1112.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 785                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 785. Suits by nationals of foreign governments
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 5, 43 Stat. 1113.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 786                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 786. Arbitration, compromise, or settlement
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 6, 43 Stat. 1113.)
 
-CROSS-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 787 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 787                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 787. Payment of judgments or settlements
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 7, 43 Stat. 1113.)
 
-CROSS-
                      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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 788                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 788. Lien not created against public vessels
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 8, 43 Stat. 1113.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 789                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 789. Exemptions and limitations of liability
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 9, 43 Stat. 1113.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 790                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 22 - SUITS IN ADMIRALTY AGAINST UNITED STATES FOR DAMAGES
         CAUSED BY PUBLIC VESSELS OR FOR TOWAGE OR SALVAGE SERVICES
 
-HEAD-
    Sec. 790. Reports by Attorney General
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 3, 1925, ch. 428, Sec. 10, 43 Stat. 1113; Aug. 30, 1954, ch.
    1076, Sec. 1(26), 68 Stat. 968.)
 
-MISC1-
                                 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 23 - SHIPPING ACT         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
    .
 
-HEAD-
    CHAPTER 23 - SHIPPING ACT
 
-MISC1-
    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, lease, etc., to foreign persons; foreign
                        registry or operation.
                  (d) Validity of unlawful charter, sale, etc.;
                        penalties.
                  (e) Placement in foreign registry without approval of
                        Secretary.
                  (e) Approval of certain vessel transactions before
                        documentation of vessel.
    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 (Sec. 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, Sec. 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.''
 
-SECREF-
                   CHAPTER REFERRED TO IN OTHER SECTIONS
      This chapter is referred to in sections 1114, 1183, 1308, 1309,
    1719 of this Appendix.

-CITE-
    46 USC APPENDIX - SHIPPING Sec. 801                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 801. Definitions
 
-STATUTE-
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 1, 39 Stat. 728; July 15, 1918, ch.
    152, Sec. 1, 40 Stat. 900; Pub. L. 87-254, Sec. 1, Sept. 19, 1961,
    75 Stat. 522; Pub. L. 95-483, Sec. 2, Oct. 18, 1978, 92 Stat. 1607;
    Pub. L. 96-325, Sec. 2, Aug. 8, 1980, 94 Stat. 1021; Pub. L. 97-35,
    title XVI, Sec. 1608(a), (c), Aug. 13, 1981, 95 Stat. 752, as
    amended Pub. L. 98-210, Sec. 6, Dec. 6, 1983, 97 Stat. 1410; Pub.
    L. 98-237, Sec. 20(a), (b)(1), Mar. 20, 1984, 98 Stat. 89; Pub. L.
    98-595, Sec. 3(a)(1), Oct. 30, 1984, 98 Stat. 3132.)
 
-MISC1-
                                 AMENDMENTS
      1984 - Pub. L. 98-595, Sec. 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, Sec. 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, Sec. 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''.
      1981 - Pub. L. 97-35, Sec. 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, Sec. 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, Sec. 6, Dec. 6, 1983, 97 Stat. 1410, and Pub. L.
    98-237, Sec. 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 (Sec. 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, Sec. 6, Dec. 6, 1983, 97 Stat. 1410, and Pub. L.
    98-237, Sec. 20(a), Mar. 20, 1984, 98 Stat. 89.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 888 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 802                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 802. Corporation, partnership, or association as citizen
 
-STATUTE-
    (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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 2(a)-(c), 39 Stat. 729; July 15,
    1918, ch. 152, Sec. 2, 40 Stat. 900; June 5, 1920, ch. 250, Sec.
    38, 41 Stat. 1008; Pub. L. 86-327, Sec. 3, Sept. 21, 1959, 73 Stat.
    597; Pub. L. 105-383, title IV, Sec. 421, Nov. 13, 1998, 112 Stat.
    3439.)
 
-COD-
                                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.
 
-MISC3-
                                 AMENDMENTS
      1998 - Subsec. (a). Pub. L. 105-383 struck out ''president or
    other'' after ''corporation, unless its'' and inserted '', by
    whatever title,'' after ''chief executive officer''.
      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.
 
-SECREF-
                   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.

-CITE-
    46 USC APPENDIX - SHIPPING Sec. 803                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 803. Applicability of chapter to receivers and trustees
 
-STATUTE-
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 2(d), 39 Stat. 729; July 15, 1918,
    ch. 152, Sec. 2, 40 Stat. 900; June 5, 1920, ch. 250, Sec. 38, 41
    Stat. 1008.)
 
-COD-
                                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.
 
-MISC3-
                                  REPEALS
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 804a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 804a. Omitted
 
-COD-
                                CODIFICATION
      Section, act June 30, 1932, ch. 314, Sec. 306, 47 Stat. 408,
    which reorganized the United States Shipping Board, was omitted in
    view of abolishment of Board by Ex. Ord. No. 6166, Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 808                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 808. Registration, enrollment, and licensing of vessels
        purchased, chartered, or leased; unlawful transactions;
        penalties
 
-STATUTE-
    (a) Repealed. Pub. L. 101-225, title III, Sec. 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), (FOOTNOTE 1) 31322(a)(1)(D), and 12106(e) (FOOTNOTE 1) of
    title 46, a person may not, without the approval of the Secretary
    of Transportation -
       (FOOTNOTE 1) So in original.
        (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 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, 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 chapter 121 of title 46 by the
      owner of the vessel placed under the foreign registry; and
        (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) (FOOTNOTE 2) Approval of certain vessel transactions before
        documentation of vessel
       (FOOTNOTE 2) So in original.  Probably should be ''(f)''.
      To promote financing with respect to a vessel to be documented
    under chapter 121 of title 46, the Secretary may grant approval
    under subsection (c) of this section before the date the vessel is
    documented.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 9, 39 Stat. 730; July 15, 1918, ch.
    152, Sec. 3, 40 Stat. 900; June 5, 1920, ch. 250, Sec. 18, 41 Stat.
    994; Ex. Ord. No. 6166, Sec. 12, eff.  June 10, 1933; June 29,
    1936, ch. 858, title II, Sec. 204, title IX, Sec. 904, 49 Stat.
    1987, 2016; June 23, 1938, ch. 600, Sec. 42, 52 Stat. 964; Pub. L.
    89-346, Sec. 1, Nov. 8, 1965, 79 Stat. 1305; Pub. L. 97-31, Sec.
    12(26), Aug. 6, 1981, 95 Stat. 155; Pub. L. 100-710, title I, Sec.
    104(b), Nov. 23, 1988, 102 Stat. 4750; Pub. L. 101-225, title III,
    Sec. 304(a), 307(3), Dec. 12, 1989, 103 Stat. 1924, 1925; Pub. L.
    104-239, Sec. 6, Oct. 8, 1996, 110 Stat. 3132; Pub. L. 104-324,
    title XI, Sec. 1113(c), (e), 1136(b), Oct. 19, 1996, 110 Stat.
    3970, 3971, 3987.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Merchant Marine Act, 1936, referred to in subsec. (e), is act
    June 29, 1936, ch. 858, 49 Stat. 1985, as amended, which is
    classified principally to chapter 27 (Sec. 1101 et seq.) of this
    Appendix. Subtitles A and B of title VI of the Act are classified
    generally to parts A (Sec. 1171 et seq.) and B (Sec. 1187 et seq.),
    respectively, of subchapter VI of chapter 27 of this Appendix. For
    complete classification of this Act to the Code, see section 1245
    of this Appendix and Tables.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (c). Pub. L. 104-324, Sec. 1113(e), substituted
    ''sections 12106(e), 31322(a)(1)(D),'' for ''sections
    31322(a)(1)(D)'' in introductory provisions.
      Pub. L. 104-324, Sec. 1113(c)(1)(A), substituted ''and 12106(e)''
    for ''and 31328'' in introductory provisions.
      Subsec. (c)(1). Pub. L. 104-324, Sec. 1113(c)(1)(B), struck out
    ''mortgage,'' after ''sell,'' in two places.
      Subsec. (d). Pub. L. 104-324, Sec. 1113(c)(2), substituted ''or
    transfer'' for ''transfer, or mortgage'' in par. (1) and ''or
    transfers'' for ''transfers, or mortgages'' in pars. (2), (3)(B),
    and (4).
      Subsec. (e). Pub. L. 104-324, Sec. 1136(b), added subsec. (e)
    relating to approval of certain vessel transactions before
    documentation of vessel.
      Pub. L. 104-239 added subsec. (e) relating to conditions for
    placing vessel under foreign registry without approval of
    Secretary.
      1989 - Subsec. (a). Pub. L. 101-225, Sec. 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, Sec. 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, Sec. 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, Sec. 304(a)(3), substituted
    ''in or control of'' for ''or control in''.
      Subsec. (d)(4). Pub. L. 101-225, Sec. 304(a)(4), added par. (4).
      1988 - Subsecs. (a), (b). Pub. L. 100-710, Sec. 104(b)(1), (2),
    designated first and second undesignated pars. as subsecs. (a) and
    (b), respectively.
      Subsecs. (c), (d). Pub. L. 100-710, Sec. 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.
 
-TRANS-
                           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-
                              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.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 808a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 808a. Sale, chartering, leasing, mortgaging or transferring of
        documented vessels without approval of Secretary
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 98-454, title III, Sec. 302, Oct. 5, 1984, 98 Stat. 1734.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Shipping Act, 1916, which
    comprises this chapter.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 811                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 811. Investigations as to cost of merchant vessels
 
-STATUTE-
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 12, 39 Stat. 732; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(27), Aug. 6, 1981, 95 Stat. 155.)
 
-MISC1-
                                 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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 817d                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 817d. Financial responsibility of owners and charterers for
        death or injury to passengers or other persons
 
-STATUTE-
    (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.
 
-SOURCE-
    (Pub. L. 89-777, Sec. 2, Nov. 6, 1966, 80 Stat. 1356; Pub. L.
    103-182, title VI, Sec. 689(c), Dec. 8, 1993, 107 Stat. 2222; Pub.
    L. 104-324, title VII, Sec. 746(c)(1), Oct. 19, 1996, 110 Stat.
    3943; Pub. L. 105-258, title III, Sec. 302(a), Oct. 14, 1998, 112
    Stat. 1916.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Shipping Act of 1984, referred to in subsec. (d), is Pub. L.
    98-237, Mar. 20, 1984, 98 Stat. 67, as amended, which is classified
    principally to chapter 36 (Sec. 1701 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1701 of this Appendix and Tables.
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Shipping Act, 1916, which
    comprises this chapter.
 
-MISC3-
                                 AMENDMENTS
      1998 - Subsec. (c). Pub. L. 105-258 substituted ''it in its
    discretion'' for ''they in their discretion''.
      1996 - Subsec. (d). Pub. L. 104-324 substituted reference to
    Shipping Act of 1984 for reference to this chapter.
      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 OF 1998 AMENDMENT
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 746(c) of Pub. L. 104-324 provided that the amendment
    made by that section is effective Sept. 30, 1996.
                               EFFECTIVE DATE
      Section 5 of Pub. L. 89-777 provided in part that this section is
    effective 9 months after Nov. 6, 1966.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 28 section 2342.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 817e                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 817e. Financial responsibility for indemnification of
        passengers for nonperformance of transportation
 
-STATUTE-
    (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.
 
-SOURCE-
    (Pub. L. 89-777, Sec. 3, Nov. 6, 1966, 80 Stat. 1357; Pub. L.
    103-182, title VI, Sec. 689(c), Dec. 8, 1993, 107 Stat. 2222; Pub.
    L. 103-206, title III, Sec. 320, Dec. 20, 1993, 107 Stat. 2427;
    Pub. L. 104-324, title VII, Sec. 746(c)(2), Oct. 19, 1996, 110
    Stat. 3943; Pub. L. 105-258, title III, Sec. 302(a), Oct. 14, 1998,
    112 Stat. 1916.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Shipping Act of 1984, referred to in subsec. (d), is Pub. L.
    98-237, Mar. 20, 1984, 98 Stat. 67, as amended, which is classified
    principally to chapter 36 (Sec. 1701 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1701 of this Appendix and Tables.
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Shipping Act, 1916, which
    comprises this chapter.
 
-MISC3-
                                 AMENDMENTS
      1998 - Subsec. (c). Pub. L. 105-258 substituted ''it in its
    discretion'' for ''they in their discretion''.
      1996 - Subsec. (d). Pub. L. 104-324 substituted reference to
    Shipping Act of 1984 for reference to this chapter.
      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 OF 1998 AMENDMENT
      Amendment by Pub. L. 105-258 effective May 1, 1999, see section 2
    of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 746(c) of Pub. L. 104-324 provided that the amendment
    made by that section is effective Sept. 30, 1996.
                               EFFECTIVE DATE
      Section 5 of Pub. L. 89-777 provided in part that this section is
    effective 180 days after Nov. 6, 1966.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 289c of this Appendix;
    title 28 section 2342.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 833                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 833. Partial invalidity of chapter as not affecting remainder
 
-STATUTE-
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 34, 39 Stat. 738.)
 
-MISC1-
                                  REPEALS
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 834                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 834. Refusal of clearance to vessel refusing to accept freight
 
-STATUTE-
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 36, 39 Stat. 738.)
 
-MISC1-
                                  REPEALS
      For provisional repeal, see note set out preceding section 801 of
    this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 835                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 835. Restrictions on transfer of shipping facilities during
        war or national emergency
 
-STATUTE-
      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) (FOOTNOTE 1) of this section, shall be forfeited
    to the United States.
       (FOOTNOTE 1) See References in Text note below.
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 37, as added July 15, 1918, ch. 152,
    Sec. 4, 40 Stat. 901; amended Ex. Ord. No. 6166, Sec. 12, eff.
    June 10, 1933; June 29, 1936, ch. 858, title II, Sec. 204, title
    IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 89-346, Sec. 2, Nov. 8,
    1965, 79 Stat. 1306; Pub. L. 97-31, Sec. 12(30), Aug. 6, 1981, 95
    Stat. 156.)
 
-REFTEXT-
                             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.
 
-MISC2-
                                 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, Sec. 2(a), added
    subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to
    (f), respectively.
      Pub. L. 89-346, Sec. 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.
 
-TRANS-
                           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.
 
-MISC5-
                          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, Sec. 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-
                              CROSS REFERENCES
      Corporation meeting certain conditions deemed citizen for
    purposes of this section, see section 883-1 of this Appendix.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 836                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 836. Forfeitures
 
-STATUTE-
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 38, as added July 15, 1918, ch. 152,
    Sec. 4, 40 Stat. 902; amended Pub. L. 101-225, title III, Sec.
    304(b), Dec. 12, 1989, 103 Stat. 1924.)
 
-MISC1-
                                 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, Sec. 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-
                              CROSS REFERENCES
      Forfeitures for offenses against collection of duties, see
    section 1604 et seq. of Title 19, Customs Duties.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 837                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 837. Prima facie evidence
 
-STATUTE-
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 39, as added July 15, 1918, ch. 152,
    Sec. 4, 40 Stat. 902.)
 
-MISC1-
                                  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, Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 839                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 839. Approvals by Secretary
 
-STATUTE-
      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.
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 41, as added July 15, 1918, ch. 152,
    Sec. 4, 40 Stat. 902; amended Ex. Ord. No. 6166, Sec. 12, eff.
    June 10, 1933; June 29, 1936, ch. 858, title II, Sec. 204, title
    IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec. 12(32), Aug.
    6, 1981, 95 Stat. 156.)
 
-MISC1-
                                 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.
 
-TRANS-
                           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.
 
-MISC5-
                          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, Sec. 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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 865a of this Appendix;
    title 28 section 2342.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 842                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 23 - SHIPPING ACT
 
-HEAD-
    Sec. 842. Short title
 
-STATUTE-
      This chapter may be cited as ''Shipping Act, 1916.''
 
-SOURCE-
    (Sept. 7, 1916, ch. 451, Sec. 46, formerly Sec. 44, as added July
    15, 1918, ch. 152, Sec. 4, 40 Stat. 903, renumbered Sec. 45, Pub.
    L. 87-254, Sec. 2, Sept. 19, 1961, 75 Stat. 522, and renumbered
    Sec. 46, Pub. L. 96-325, Sec. 5, Aug. 8, 1980, 94 Stat. 1022.)
 
-MISC1-
                       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, Sec. 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, Sec. 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 24 - MERCHANT MARINE
                  ACT, 1920                                      01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
    .
 
-HEAD-
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-MISC1-
    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.
                  (a) In general.
                  (b) Approval and final action.
                  (c) Submission of facts to President.
                  (d) Prohibition against preference.
                  (e) Motion or petition.
                  (f) Filing of information.
                  (g) Discovery; witnesses; evidence.
                  (h) Disclosure to public.
                  (i) Finding of unfavorable conditions.
                  (j) Refusal of clearance and denial of entry.
                  (k) Operation under suspended tariff or service
                        contract.
                  (l) Consultation with other agencies.
    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.
 
-SECREF-
                   CHAPTER REFERRED TO IN OTHER SECTIONS
      This chapter is referred to in section 1114 of this Appendix;
    title 15 section 1014.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 861                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 861. Purpose and policy of United States
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 1, 41 Stat. 988; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(33), Aug. 6, 1981, 95 Stat. 156.)
 
-REFTEXT-
                             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.
 
-MISC2-
                                 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.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 871, 891 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 864a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 864a. Purchase allowance in sale of vessels for cost of
        putting vessels in class
 
-STATUTE-
      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) (FOOTNOTE 1) of the Appendix to title
    50.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (June 30, 1948, ch. 775, Sec. 101, 62 Stat. 1199; Pub. L. 97-31,
    Sec. 12(35), Aug. 6, 1981, 95 Stat. 156.)
 
-REFTEXT-
                             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, Sec. 307(12), Dec. 12,
    1989, 103 Stat. 1925.
 
-COD-
                                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.
 
-MISC3-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Commission'', meaning the United States Maritime Commission.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 864b                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 864b. Elements considered in sale of vessels in determination
        of selling price
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1949, ch. 281, Sec. 1, 63 Stat. 349; Pub. L. 97-31, Sec.
    12(36), Aug. 6, 1981, 95 Stat. 156.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1920,
    which comprises this chapter.
 
-MISC3-
                                 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 865                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 865. Sale to aliens
 
-STATUTE-
      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
    (FOOTNOTE 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, (FOOTNOTE 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 5 1/2 per centum per annum, payable
    semiannually.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 6, 41 Stat. 991; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(37), Aug. 6, 1981, 95 Stat. 156.)
 
-REFTEXT-
                             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, Sec.
    202(4), Nov. 23, 1988, 102 Stat. 4753.
 
-MISC2-
                                 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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 865a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 865a. Sale of inactive passenger vessels to foreigners;
        conditions; requisition in emergency; surety bond
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 92-296, Sec. 1, May 16, 1972, 86 Stat. 140; Pub. L. 97-31,
    Sec. 12(38), Aug. 6, 1981, 95 Stat. 156.)
 
-REFTEXT-
                             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 (Sec. 1101 et seq.) of this Appendix. For
    complete classification of this Act to the Code, see section 1245
    of this Appendix and Tables.
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1920,
    which comprises this chapter.
 
-MISC3-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce''.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 866                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 866. Establishment and operation of steamship lines between
        ports of United States
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 7, 41 Stat. 991; May 22, 1928, ch.
    675, Sec. 414(b), 45 Stat. 696; Ex. Ord. No. 6166, Sec. 12, eff.
    June 10, 1933; June 29, 1936, ch. 858, title II, Sec. 204, title
    IX, Sec. 904, 49 Stat. 1987, 2016; 1950 Reorg. Plan No. 21, Sec.
    204, eff.  May 24, 1950, 15 F.R. 3178, 64 Stat. 1276; Pub. L.
    97-31, Sec. 12(39), Aug. 6, 1981, 95 Stat. 156.)
 
-REFTEXT-
                             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.
 
-COD-
                                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.
 
-MISC3-
                                 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.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 891v, 1195 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 867                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 867. Investigation of port, terminal, and warehouse facilities
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 8, 41 Stat. 992; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; July 26, 1947,
    ch. 343, title II, Sec. 205(a), 61 Stat. 501; Pub. L. 97-31, Sec.
    12(40), Aug. 6, 1981, 95 Stat. 156; Pub. L. 104-88, title III, Sec.
    321(1), Dec. 29, 1995, 109 Stat. 949.)
 
-MISC1-
                                 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-
                               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.
 
-MISC4-
                      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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 868                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 868. Vessels sold under deferred payment plan; insurance
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 9, 41 Stat. 992; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(41), Aug. 6, 1981, 95 Stat. 156.)
 
-REFTEXT-
                             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.
 
-MISC2-
                                 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.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1153 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 869                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 869. Creation of fund for insurance of interests of United
        States
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 10, 41 Stat. 992; May 22, 1928, ch.
    675, Sec. 501, 45 Stat. 697; Ex. Ord. No. 6166, Sec. 12, eff.  June
    10, 1933; June 29, 1936, ch. 858, title II, Sec. 204, title IX,
    Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec. 12(42), Aug. 6,
    1981, 95 Stat. 156.)
 
-REFTEXT-
                             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.
 
-MISC2-
                                 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.
 
-TRANS-
                           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-
                              CROSS REFERENCES
      War risk insurance, see section 1281 et seq. of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 871                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 871. Repair and operation of vessels until sale
 
-STATUTE-
      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. (FOOTNOTE 1)
       (FOOTNOTE 1) See References in Text note below.
      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 (FOOTNOTE 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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 12, 41 Stat. 993; June 6, 1924, ch.
    273, Sec. 2, 43 Stat. 468; Feb. 11, 1927, ch. 104, Sec. 1, 44 Stat.
    1083; Ex. Ord. No. 6166, Sec. 12, eff.  June 10, 1933; June 29,
    1936, ch. 858, title II, Sec. 204, title IX, Sec. 904, 49 Stat.
    1987, 2016; Pub. L. 97-31, Sec. 12(43), Aug. 6, 1981, 95 Stat.
    157.)
 
-REFTEXT-
                             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, Sec.
    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, Sec. 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.
 
-COD-
                                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.
 
-MISC3-
                                 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.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 891b of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 872                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 872. Sale of property other than vessels
 
-STATUTE-
      The Secretary of Transportation is further authorized to sell all
    property other than vessels transferred to him under section 4
    (FOOTNOTE 1) upon such terms and conditions as the Secretary of
    Transportation may determine and prescribe.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 13, 41 Stat. 993; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(44), Aug. 6, 1981, 95 Stat. 157.)
 
-REFTEXT-
                             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, Sec.
    202(4), Nov. 23, 1988, 102 Stat. 4753.
 
-MISC2-
                                 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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 875                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 875. Possession and control of terminal equipment and
        facilities
 
-STATUTE-
      The possession and control of such other (FOOTNOTE 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
    (FOOTNOTE 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.
       (FOOTNOTE 1) See References in Text note below.
       (FOOTNOTE 2) See Change of Name note below.
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 17, 41 Stat. 994; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; July 26, 1947,
    ch. 343, title II, Sec. 205(a), 207(a), (f), 61 Stat. 501, 502;
    Pub. L. 97-31, Sec. 12(45), Aug. 6, 1981, 95 Stat. 157.)
 
-REFTEXT-
                             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.
 
-MISC2-
                                 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-
                               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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 876                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 876. Power of Secretary and Commission to make rules and
        regulations
 
-STATUTE-
    (a) In general
      The Secretary of Transportation is authorized and directed in aid
    of the accomplishment of the purposes of this Act -
        (1) 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:
        (2) 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, agency
      services, ocean transportation intermediary services and
      operations, and other activities and services integral to
      transportation systems, and which arise out of or result from
      foreign laws, rules, or regulations or from competitive methods,
      pricing practices, or other practices employed by owners,
      operators, agents, or masters of vessels of a foreign country;
      and
        (3) 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.
    (b) Approval and final action
      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.
    (c) Submission of facts to President
      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 subsection (a)(3) of
    this section, or objects to the decision of the Commission in
    respect to the approval of any rule or regulation, as provided in
    subsection (b) 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.
    (d) Prohibition against preference
      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.
    (e) Motion or petition
      The Commission may initiate a rule or regulation under subsection
    (a)(2) 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 transportation
    intermediary, marine terminal operator, or any component of the
    Government of the United States, may file a petition for relief
    under subsection (a)(2) of this section.
    (f) Filing of information
      In furtherance of the purposes of subsection (a)(2) of this
    section -
        (1) the Commission may, by order, require any person (including
      any common carrier, tramp operator, bulk operator, shipper,
      shippers' association, ocean transportation intermediary, or
      marine terminal operator, or an officer, receiver, trustee,
      lessee, agent, or employee thereof) to file with the Commission a
      report, answers to questions, documentary material, or other
      information which the Commission considers necessary or
      appropriate;
        (2) the Commission may require a report or answers to questions
      to be made under oath;
        (3) the Commission may prescribe the form and the time for
      response to a report and answers to questions; and
        (4) 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.
    (g) Discovery; witnesses; evidence
      In proceedings under subsection (a)(2) of this section -
        (1) 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;
        (2) the Commission may by subpoena compel the attendance of
      witnesses and the production of books, papers, documents, and
      other evidence;
        (3) 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;
        (4) for failure to supply information ordered to be produced or
      compelled by subpoena under paragraph (2), the Commission may -
          (A) after notice and an opportunity for hearing, suspend
        tariffs and service contracts of a common carrier or that
        common carrier's right to use tariffs of conferences and
        service contracts of agreements of which it is a member, or
          (B) assess a civil penalty of not more than $5,000 for each
        day that the information is not provided; and
        (5) 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.
    (h) Disclosure to public
      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.
    (i) Finding of unfavorable conditions
      If the Commission finds that conditions that are unfavorable to
    shipping under subsection (a)(2) of this section exist, the
    Commission may -
        (1) limit sailings to and from United States ports or the
      amount or type of cargo carried;
        (2) suspend, in whole or in part, tariffs and service contracts
      for carriage to or from United States ports, including a common
      carrier's right to use tariffs of conferences and service
      contracts of agreements in United States trades of which it is a
      member for any period the Commission specifies;
        (3) suspend, in whole or in part, an ocean common carrier's
      right to operate under 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;
        (4) impose a fee, not to exceed $1,000,000 per voyage; or
        (5) take any other action the Commission finds necessary and
      appropriate to adjust or meet any condition unfavorable to
      shipping in the foreign trade of the United States.
    (j) Refusal of clearance and denial of entry
      Upon request by the Commission -
        (1) 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 subsection (a)(2) of this section, and shall collect any
      fees imposed by the Commission under subsection (i)(4) of this
      section; and
        (2) 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 subsection (a)(2) 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.
    (k) Operation under suspended tariff or service contract
      A common carrier that accepts or handles cargo for carriage under
    a tariff or service contract that has been suspended under
    subsection (g)(4) or (i)(2) of this section, or after its right to
    use another tariff or service contract 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 or service contract.
    (l) Consultation with other agencies
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 19, 41 Stat. 995; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(46), Aug. 6, 1981, 95 Stat. 157; Pub. L. 101-595, title I,
    Sec. 103, Nov. 16, 1990, 104 Stat. 2979; Pub. L. 102-587, title VI,
    Sec. 6205(b), Nov. 4, 1992, 106 Stat. 5094; Pub. L. 105-258, title
    III, Sec. 301, Oct. 14, 1998, 112 Stat. 1915.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      This Act, referred to in subsec. (a), 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.
 
-MISC2-
                                 AMENDMENTS
      1998 - Subsec. (a). Pub. L. 105-258, Sec. 301(a)(1)-(3), (b)(1),
    (2), redesignated par. (1) as subsec. (a) and former subdivs. (a)
    to (c) as pars. (1) to (3), respectively, and, in par. (2) as
    redesignated, struck out ''forwarding and'' before ''agency
    services'' and substituted ''ocean transportation intermediary
    services and operations,'' for ''non-vessel-operating common
    carrier operations,'' and ''methods, pricing practices, or other
    practices'' for ''methods or practices''.
      Subsec. (b). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (2) as subsec. (b).
      Subsec. (c). Pub. L. 105-258, Sec. 301(b)(1), (8), (9),
    redesignated par. (3) as subsec. (c) and substituted ''subsection
    (a)(3)'' for ''subdivision (c) of paragraph (1)'' and ''subsection
    (b)'' for ''paragraph (2)''.
      Subsec. (d). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (4) as subsec. (d).
      Subsec. (e). Pub. L. 105-258, Sec. 301(a)(7), (b)(1), (10),
    redesignated par. (5) as subsec. (e), substituted ''transportation
    intermediary,'' for ''freight forwarder,'', and substituted
    ''subsection (a)(2)'' for ''paragraph (1)(b)'' in two places.
      Subsec. (f). Pub. L. 105-258, Sec. 301(b)(1), (10), redesignated
    par. (6) as subsec. (f) and substituted ''subsection (a)(2)'' for
    ''paragraph (1)(b)'' in introductory provisions.
      Subsec. (f)(1). Pub. L. 105-258, Sec. 301(a)(7), (b)(3),
    redesignated subd. (a) as par. (1) and substituted ''transportation
    intermediary,'' for ''freight forwarder,''.
      Subsec. (f)(2) to (4). Pub. L. 105-258, Sec. 301(b)(3),
    redesignated subds. (b) to (d) as pars. (2) to (4), respectively.
      Subsec. (g). Pub. L. 105-258, Sec. 301(b)(1), (10), redesignated
    par. (7) as subsec. (g) and substituted ''subsection (a)(2)'' for
    ''paragraph (1)(b)'' in introductory provisions.
      Subsec. (g)(1) to (3). Pub. L. 105-258, Sec. 301(b)(4),
    redesignated subds. (a) to (c) as pars. (1) to (3), respectively.
      Subsec. (g)(4). Pub. L. 105-258, Sec. 301(b)(4), (11),
    redesignated subd. (d) as par. (4) and substituted ''paragraph
    (2),'' for ''subdivision (b),'' in introductory provisions.
      Subsec. (g)(4)(A). Pub. L. 105-258, Sec. 301(a)(4), (5), (b)(5),
    redesignated cl. (i) as subpar. (A) and substituted ''tariffs and
    service contracts of a common carrier'' for ''tariffs of a common
    carrier'' and ''use tariffs of conferences and service contracts of
    agreements'' for ''use the tariffs of conferences''.
      Subsec. (g)(4)(B). Pub. L. 105-258, Sec. 301(b)(5), redesignated
    cl. (ii) as subpar. (B).
      Subsec. (g)(5). Pub. L. 105-258, Sec. 301(b)(4), redesignated
    subd. (e) as par. (5).
      Subsec. (h). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (8) as subsec. (h).
      Subsec. (i). Pub. L. 105-258, Sec. 301(b)(1), (10), redesignated
    par. (9) as subsec. (i) and substituted ''subsection (a)(2)'' for
    ''paragraph (1)(b)'' in introductory provisions.
      Subsec. (i)(1). Pub. L. 105-258, Sec. 301(b)(6), redesignated
    subd. (a) as par. (1).
      Subsec. (i)(2). Pub. L. 105-258, Sec. 301(a)(6), (b)(6),
    redesignated subd. (b) as par. (2) and substituted ''tariffs and
    service contracts'' for ''tariffs filed with the Commission''.
      Pub. L. 105-258, Sec. 301(a)(5), which directed amendment of par.
    (2) by substituting ''use tariffs of conferences and service
    contracts of agreements'' for ''use the tariffs of conferences'',
    was executed by making the substitution for ''use tariffs of
    conferences'', to reflect the probable intent of Congress.
      Subsec. (i)(3) to (5). Pub. L. 105-258, Sec. 301(b)(6),
    redesignated subds. (c) to (e) as pars. (3) to (5), respectively.
      Subsec. (j). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (10) as subsec. (j).
      Subsec. (j)(1). Pub. L. 105-258, Sec. 301(b)(7), (10), (12),
    redesignated subd. (a) as par. (1) and substituted ''subsection
    (a)(2)'' for ''paragraph (1)(b)'' and ''subsection (i)(4)'' for
    ''paragraph (9)(d)''.
      Subsec. (j)(2). Pub. L. 105-258, Sec. 301(b)(7), (10),
    redesignated subd. (b) as par. (2) and substituted ''subsection
    (a)(2)'' for ''paragraph (1)(b)''.
      Subsec. (k). Pub. L. 105-258, Sec. 301(a)(8), (b)(1), (13),
    redesignated par. (11) as subsec. (k), substituted ''subsection
    (g)(4) or (i)(2)'' for ''paragraph (7)(d) or (9)(b)'', and
    substituted ''tariff or service contract'' for ''tariff'' wherever
    appearing.
      Subsec. (l). Pub. L. 105-258, Sec. 301(b)(1), redesignated par.
    (12) as subsec. (l).
      1992 - Par. (1)(b). Pub. L. 102-587, Sec. 6205(b)(1), substituted
    ''systems'' for ''sysetms'' after ''integral to transportation''.
      Par. (7)(d). Pub. L. 102-587, Sec. 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, Sec. 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, Sec. 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.
                      EFFECTIVE DATE OF 1998 AMENDMENT
      Amendments by Pub. L. 105-258 effective May 1, 1999, see section
    2 of Pub. L. 105-258, set out as a note under section 1701 of this
    Appendix.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1273a, 1710a of this
    Appendix; title 28 section 2342.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 877                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 877. Coastwise laws extended to island Territories and
        possessions
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 21, 41 Stat. 997; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; Apr. 16, 1936, ch. 228, 49 Stat.
    1207; June 29, 1936, ch. 858, title II, Sec. 204, title IX, Sec.
    904, 49 Stat. 1987, 2016; Proc. No. 2695, eff.  July 4, 1946, 11
    F.R. 7517, 60 Stat. 1352; Pub. L. 97-31, Sec. 12(47), Aug. 6, 1981,
    95 Stat. 157.)
 
-COD-
                                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.
 
-MISC3-
                                 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.
 
-TRANS-
                           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.
 
-EXEC-
                               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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 883                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 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
 
-STATUTE-
       (FOOTNOTE 1) So in original.  The word ''the'' probably should
    not appear.
       (FOOTNOTE 2) See References in Text note below.
       (FOOTNOTE 3) So in original.  Probably should be followed by a
    colon.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 27, 41 Stat. 999; Ex. Ord. No. 6166,
    Sec. 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, Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; 1950 Reorg.
    Plan No. 21, Sec. 204, eff.  May 24, 1950, 15 F.R. 3178, 64 Stat.
    1276; July 14, 1956, ch. 600, Sec. 1, 70 Stat. 544; Pub. L. 85-508,
    Sec. 27(a), July 7, 1958, 72 Stat. 351; Pub. L. 86-583, Sec. 1,
    July 5, 1960, 74 Stat. 321; Pub. L. 89-194, Sept. 21, 1965, 79
    Stat. 823; Pub. L. 90-474, Aug. 11, 1968, 82 Stat. 700; Pub. L.
    92-163, Sec. 1, Nov. 23, 1971, 85 Stat. 486; Pub. L. 95-410, title
    II, Sec. 213, Oct. 3, 1978, 92 Stat. 904; Pub. L. 96-112, Sec. 4,
    Nov. 16, 1979, 93 Stat. 848; Pub. L. 97-31, Sec. 12(49), Aug. 6,
    1981, 95 Stat. 157; Pub. L. 97-389, title V, Sec. 502, 504, Dec.
    29, 1982, 96 Stat. 1954, 1956; Pub. L. 100-239, Sec. 6(c)(1), Jan.
    11, 1988, 101 Stat. 1782; Pub. L. 101-329, Sec. 1(a), June 7, 1988,
    102 Stat. 588; Pub. L. 102-587, title V, Sec. 5501(b), Nov. 4,
    1992, 106 Stat. 5085; Pub. L. 104-324, title VII, Sec. 747, title
    XI, Sec. 1120(e), Oct. 19, 1996, 110 Stat. 3943, 3978.)
 
-REFTEXT-
                             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, Sec.
    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.
 
-MISC2-
                              PRIOR PROVISIONS
      Provisions similar to those in this section were contained in act
    Feb. 17, 1898, ch. 26, Sec. 1, 30 Stat. 248, which was classified
    to section 290 of this Appendix.
                                 AMENDMENTS
      1996 - Pub. L. 104-324 in first proviso inserted ''of more than
    200 gross tons (as measured under chapter 143 of title 46)'' after
    ''no vessel'', in third proviso substituted ''Surface
    Transportation Board'' for ''Interstate Commerce Commission'' and
    ''the Board'' for ''said Commission'', and in fifth proviso
    substituted ''Surface Transportation Board'' for ''Interstate
    Commerce Commission'' the first place appearing and ''Board'' for
    ''Interstate Commerce Commission'' the second place appearing.
      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, Sec. 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, Sec. 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.''
                                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).''
                                  REPEALS
      For effect of subtitle IV (Sec. 10101 et seq.) of Title 49,
    Transportation, see note set out preceding section 801 of this
    Appendix.
 
-TRANS-
                           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.
 
-MISC5-
           CERTIFICATE OF DOCUMENTATION FOR LIQUIFIED GAS TANKER
      Section 1120(f) of Pub. L. 104-324 provided that:
    ''Notwithstanding section 27 of the Merchant Marine Act, 1920 (46
    App. U.S.C. 883), section 12106 of title 46, United States Code,
    section 506 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1156)
    and any agreement with the United States Government, the Secretary
    of Transportation may issue a certificate of documentation with a
    coastwise endorsement for a vessel to transport liquified natural
    gas or liquified petroleum gas to the Commonwealth of Puerto Rico
    from other ports in the United States, if the vessel -
        ''(1) is a foreign built vessel that was built prior to the
      date of enactment of this Act (Oct. 19, 1996); or
        ''(2) is documented under chapter 121 of title 46, United
      States Code, before the date of enactment of this Act, even if
      the vessel is placed under a foreign registry and subsequently
      redocumented under that chapter for operation under this
      section.''
           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, Sec. 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.
                        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, Sec. 18(a), Mar. 18, 1959, 73 Stat. 12, as amended
    Pub. L. 86-624, Sec. 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, Sec. 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, Sec. 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, Sec. 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-
                              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.
 
-SECREF-
                   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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 883-1                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 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
 
-STATUTE-
      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
    as measured under section 14502 of title 46, or an alternate
    tonnage measured under section 14302 of that title as prescribed by
    the Secretary under section 14104 of that title, 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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 27A, as added Pub. L. 85-902, Sept. 2,
    1958, 72 Stat. 1736; amended Pub. L. 104-88, title III, Sec.
    321(2), Dec. 29, 1995, 109 Stat. 950; Pub. L. 104-324, title VII,
    Sec. 706, Oct. 19, 1996, 110 Stat. 3934.)
 
-COD-
                                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, Sec. 2(b), Aug. 26, 1983, 97 Stat. 598, section 1 of
    which enacted Title 46, Shipping.
 
-MISC3-
                                 AMENDMENTS
      1996 - Pub. L. 104-324, in third par., inserted ''as measured
    under section 14502 of title 46, or an alternate tonnage measured
    under section 14302 of that title as prescribed by the Secretary
    under section 14104 of that title,'' after ''five hundred gross
    tons''.
      1995 - Pub. L. 104-88, in first par., 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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 30 section 1522; title 46
    section 14305.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 883a                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 883a. Reports required of United States vessels rebuilt
        abroad; penalty for failure to report; mitigation of penalty
 
-STATUTE-
      If any vessel of more than five hundred gross tons as measured
    under section 14502 of title 46, or an alternate tonnage measured
    under section 14302 of that title as prescribed by the Secretary
    under section 14104 of that title 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.
 
-SOURCE-
    (July 14, 1956, ch. 600, Sec. 2, 70 Stat. 544; Pub. L. 86-583, Sec.
    2, July 5, 1960, 74 Stat. 321; Pub. L. 104-324, title VII, Sec.
    707, Oct. 19, 1996, 110 Stat. 3934.)
 
-REFTEXT-
                             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.
 
-COD-
                                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, Sec.
    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.
 
-MISC3-
                                 AMENDMENTS
      1996 - Pub. L. 104-324 inserted ''as measured under section 14502
    of title 46, or an alternate tonnage measured under section 14302
    of that title as prescribed by the Secretary under section 14104 of
    that title'' after ''five hundred gross tons''.
      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 46 section 14305.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 883b                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 883b. Regulations
 
-STATUTE-
      The Secretary of the Treasury shall prescribe such regulations as
    may be necessary to carry out the purposes of this Act.
 
-SOURCE-
    (July 14, 1956, ch. 600, Sec. 3, 70 Stat. 544.)
 
-REFTEXT-
                             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.
 
-COD-
                                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.
 
-MISC3-
                               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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 884                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 884. Charges for transportation subject to interstate
        transportation provisions
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 28, 41 Stat. 999; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, Sec. 204,
    904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec. 12(50), Aug. 6, 1981,
    95 Stat. 157; Pub. L. 104-88, title III, Sec. 321(3), Dec. 29,
    1995, 109 Stat. 950.)
 
-COD-
                                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, Sec. 3(b), Oct. 17, 1978, 92 Stat. 1466, the first
    section of which enacted subtitle IV of Title 49, Transportation.
 
-MISC3-
                                 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 (Sec. 10101 et seq.) of Title 49,
    Transportation, see note set out preceding section 801 of this
    Appendix.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 885                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 885. Association of marine insurance companies; application of
        antitrust laws
 
-STATUTE-
      (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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 29, 41 Stat. 1000.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 887                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 887. Partial invalidity
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 36, 41 Stat. 1007.)
 
-REFTEXT-
                             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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 888                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 888. Definitions
 
-STATUTE-
      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.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 37, 41 Stat. 1008; Pub. L. 86-327,
    Sec. 2, Sept. 21, 1959, 73 Stat. 597.)
 
-REFTEXT-
                             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.
 
-COD-
                                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, Sec. 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.
 
-MISC3-
                                 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.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 46 section 31329.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 889                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24 - MERCHANT MARINE ACT, 1920
 
-HEAD-
    Sec. 889. Short title
 
-STATUTE-
      This Act may be cited as the Merchant Marine Act, 1920.
 
-SOURCE-
    (June 5, 1920, ch. 250, Sec. 39, 41 Stat. 1008.)
 
-REFTEXT-
                             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.
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 24A - MERCHANT MARINE
                  ACT, 1928                                      01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
    .
 
-HEAD-
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
 
-MISC1-
    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.
 
-SECREF-
                   CHAPTER REFERRED TO IN OTHER SECTIONS
      This chapter is referred to in section 1114 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 891                          01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
 
-HEAD-
    Sec. 891. Declaration of policy
 
-STATUTE-
      The policy and the primary purpose declared in section 861 of
    this Appendix are confirmed.
 
-SOURCE-
    (May 22, 1928, ch. 675, Sec. 1, 45 Stat. 689.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 891b                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
 
-HEAD-
    Sec. 891b. Vessels of Secretary; remodeling and improving
 
-STATUTE-
      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.
 
-SOURCE-
    (May 22, 1928, ch. 675, Sec. 202, 45 Stat. 690; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(51), Aug. 6, 1981, 95 Stat. 157.)
 
-MISC1-
                                 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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 891c                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
 
-HEAD-
    Sec. 891c. Replacement vessels
 
-STATUTE-
      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.
 
-SOURCE-
    (May 22, 1928, ch. 675, Sec. 203, 45 Stat. 690; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(52), Aug. 6, 1981, 95 Stat. 157.)
 
-MISC1-
                                 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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 891u                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
 
-HEAD-
    Sec. 891u. Definitions
 
-STATUTE-
      (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.
 
-SOURCE-
    (May 22, 1928, ch. 675, Sec. 703, 45 Stat. 698.)
 
-REFTEXT-
                             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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 891v                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
 
-HEAD-
    Sec. 891v. Reaffirmation of steamship line policy
 
-STATUTE-
      The policy and the primary purpose declared in section 866 of
    this Appendix are reaffirmed.
 
-SOURCE-
    (May 22, 1928, ch. 675, Sec. 704, 45 Stat. 698.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 891w                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
 
-HEAD-
    Sec. 891w. Ship operations; allocations
 
-STATUTE-
      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.
 
-SOURCE-
    (May 22, 1928, ch. 675, Sec. 705, 45 Stat. 698; Ex. Ord. No. 6166,
    Sec. 12, eff.  June 10, 1933; June 29, 1936, ch. 858, title II,
    Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31,
    Sec. 12(53), Aug. 6, 1981, 95 Stat. 157.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Maritime Commission''. For prior transfers of functions, see
    Transfer of Functions note below.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 891x                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 24A - MERCHANT MARINE ACT, 1928
 
-HEAD-
    Sec. 891x. Short title
 
-STATUTE-
      This Act may be cited as the ''Merchant Marine Act, 1928''.
 
-SOURCE-
    (May 22, 1928, ch. 675, Sec. 706, 45 Stat. 698.)
 
-REFTEXT-
                             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.
 
 
-CITE-
    46 USC APPENDIX - SHIPPING CHAPTER 27 - MERCHANT MARINE
                  ACT, 1936                                      01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    .
 
-HEAD-
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
 
-MISC1-
                    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.
    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.
    1132. Reemployment rights for certain merchant seamen.
                  (a) In general.
                  (b) Time for application.
                  (c) Certification determination.
                  (d) Equivalence to Military Selective Service Act
                        certificate.
              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.
    1162. Limitation on restrictions.
            SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
              PART A - OPERATING-DIFFERENTIAL SUBSIDY PROGRAM
    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.
    1185a. Wind-up of program.
                  (a) In general.
                  (b) Existing subsidy contracts.
                  (c) Essential service and port equity requirements.
                  (d) Transfer and registration of vessel.
                  PART B - MARITIME SECURITY FLEET PROGRAM
    1187. Establishment of fleet.
                  (a) In general.
                  (b) Vessel eligibility.
    1187a. Operating agreements.
                  (a) In general.
                  (b) Requirements for operation.
                  (c) Regulatory relief.
                  (d) Effectiveness and annual payment requirements of
                        operating agreements.
                  (e) Certification required for payment.
                  (f) Operating agreement is obligation of United
                        States Government.
                  (g) Limitations.
                  (h) Payments.
                  (i) Priority for awarding agreements.
                  (j) Transfer of operating agreements.
                  (k) Reversion of unused authority.
                  (l) Procedure for considering application; effective
                        date for certain vessels.
                  (m) Early termination.
                  (n) Nonrenewal for lack of funds.
                  (o) Award of operating agreements.
                  (p) Notice to United States shipbuilders required.
    1187b. National security requirements.
                  (a) Emergency Preparedness Agreement.
                  (b) Resources made available.
                  (c) Compensation.
                  (d) Temporary replacement vessels.
                  (e) Redelivery and liability of United States for
                        damages.
    1187c. Definitions.
    1187d. Authorization of appropriations.
    1187e. Noncontiguous domestic trades.
                  (a) In general.
                  (b) Exceptions.
                  (c) Date of level of service.
                  (d) Increase in real gross product of noncontiguous
                        State or Commonwealth.
                  (e) Application.
                  (f) Denial of payments.
                  (g) Temporary service.
                  (h) Definitions.
                 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.
                  (f) Use of foreign-flag vessels.
    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.
                  (h) Risk categories.
    1273a. Certain loan guarantees and commitments.
    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.
    1279f. Fisheries financing and capacity reduction.
                  (a) Authorization for guarantees; issuance of
                        obligations.
                  (b) Requirements for guaranteed obligations.
                  (c) Fishing capacity reduction fund; establishment;
                        availability of amounts; deposit or investment.
                  (d) Issuance of regulations.
                  (e) ''Program'' defined.
    1279g. Direct loan obligations for fisheries financing and capacity
      reduction.
    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; rights and privileges.
                  (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-
                              CROSS REFERENCES
      Emergency foreign vessel acquisition, see sections 196 to 198 of
    Title 50, War and National Defense.
 
-SECREF-
                   CHAPTER REFERRED TO IN OTHER SECTIONS
      This chapter is referred to in sections 808, 865a of this
    Appendix; title 40 sections 270f, 484; title 42 sections 9101,
    9141; title 50 App. section 1744.
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER I - DECLARATION OF
                  POLICY                                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER I - DECLARATION OF POLICY
    .
 
-HEAD-
    SUBCHAPTER I - DECLARATION OF POLICY
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in section 1122 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1101                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER I - DECLARATION OF POLICY
 
-HEAD-
    Sec. 1101. Fostering development and maintenance of merchant marine
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title I, Sec. 101, 49 Stat. 1985; Pub. L.
    91-469, Sec. 1, Oct. 21, 1970, 84 Stat. 1018.)
 
-MISC1-
                                 AMENDMENTS
      1970 - Pub. L. 91-469 struck out ''on all routes'' after
    ''shipping service'' in cl. (a) and inserted cl. (e).
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1119, 1120, 1161, 1191,
    1222 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER II - CREATION AND
                  FUNCTIONS OF MARITIME AGENCIES                 01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
    .
 
-HEAD-
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1111                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1111. Powers and duties of agencies
 
-STATUTE-
    (a) Repealed. Pub. L. 97-31, Sec. 12(58)(A), Aug. 6, 1981, 95 Stat.
        158
    (b) Repealed. Pub. L. 101-225, title III, Sec. 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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 201, 49 Stat. 1985; Aug. 4,
    1939, ch. 417, Sec. 3, 4, 53 Stat. 1182; Oct. 28, 1949, ch. 782,
    title XI, Sec. 1106(a), 63 Stat. 972; Pub. L. 85-507, Sec.
    21(b)(4), July 7, 1958, 72 Stat. 337; Pub. L. 91-469, Sec. 36, Oct.
    21, 1970, 84 Stat. 1036; Pub. L. 97-31, Sec. 12(58), Aug. 6, 1981,
    95 Stat. 158; Pub. L. 101-225, title III, Sec. 307(7), Dec. 12,
    1989, 103 Stat. 1925.)
 
-REFTEXT-
                             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.
 
-COD-
                                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,
    Sec. 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, Sec. 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, Sec.
    7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which
    enacted Title 5.
 
-MISC3-
                                 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, Sec. 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, Sec. 12(58)(B), substituted ''their''
    for ''its'' and ''them'' for ''it'' and inserted reference to
    Secretary of Transportation.
      Subsec. (e). Pub. L. 97-31, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 8, 80 Stat. 632, 655.
 
-TRANS-
                           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, Sec. 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, Sec. 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.
 
-MISC5-
     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.
 
-EXEC-
              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.
 
-MISC6-
                     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, Sec. 305(19), Aug. 14, 1964, 78 Stat. 425;
      Pub. L. 91-469, Sec. 38, Oct. 21, 1970, 84 Stat. 1036; Pub. L.
      105-258, title II, Sec. 202, Oct. 14, 1998, 112 Stat. 1915
    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 or vacancies in the membership of Commission shall
    not impair the power of the Commission to execute its functions.
    The affirmative vote of a majority of the members serving on the
    Commission is required to dispose of any matter before the
    Commission. (As amended Pub. L. 88-426, title III, Sec. 305(19)(A),
    Aug. 14, 1964, 78 Stat. 425; Pub. L. 105-258, title II, Sec. 202,
    Oct. 14, 1998, 112 Stat. 1915.)
      (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,
    Sec. 305(19)(B), Aug. 14, 1964, 78 Stat. 425; Pub. L. 91-469, Sec.
    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. Sec. 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, Sec.
    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, SEC. 305, EFF. AUG. 12, 1961, 26 F.R. 7315, 75
      STAT. 840; OCT. 21, 1970, PUB. L. 91-469, SEC. 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 101-106. (Superseded. Reorg. Plan No. 7 of 1961, Sec.
    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, Sec. 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, Sec. 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, Sec. 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-
                              CROSS REFERENCES
      Advertisements for proposals for purchases and contracts for
    supplies or services, see section 5 of Title 41, Public Contracts.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1111a                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1111a. Administrative expenses; limitations
 
-STATUTE-
      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.
 
-SOURCE-
    (June 25, 1938, ch. 681, title I, 52 Stat. 1119; Pub. L. 97-31,
    Sec. 12(59), Aug. 6, 1981, 95 Stat. 158.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.
 
-MISC3-
                                 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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1112                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1112. Operation of property by Secretary
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 202, 49 Stat. 1986; Aug.
    26, 1937, ch. 822, Sec. 1, 50 Stat. 839; June 23, 1938, ch. 600,
    Sec. 1, 52 Stat. 953; Pub. L. 97-31, Sec. 12(60), Aug. 6, 1981, 95
    Stat. 158.)
 
-MISC1-
                                 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.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1158 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1114                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1114. Transfer of powers; rules and orders
 
-STATUTE-
    (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.
 
-SOURCE-
    (June 29, 1936, ch. 858, Sec. 204, 49 Stat. 1987; June 23, 1938,
    ch. 600, Sec. 41, 52 Stat. 964; Pub. L. 97-31, Sec. 12(61), Aug. 6,
    1981, 95 Stat. 158; Pub. L. 104-88, title III, Sec. 335(c)(1), Dec.
    29, 1995, 109 Stat. 954.)
 
-REFTEXT-
                             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 (Sec. 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 (Sec. 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 (Sec. 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.
 
-MISC2-
                                 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, Sec. 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, Sec. 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, Sec. 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.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1151, 1244 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1115                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1115. Discrimination at ports by carriers by water against
        other carriers
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 205, 49 Stat. 1987; Pub. L.
    97-31, Sec. 12(62), Aug. 6, 1981, 95 Stat. 159.)
 
-MISC1-
                                 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 (Sec. 10101 et seq.) of Title 49,
    Transportation, see note set out preceding section 801 of this
    Appendix.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1116                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1116. Construction fund
 
-STATUTE-
      All sums of money now in the construction loan fund created by
    section 11 (FOOTNOTE 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.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 206, 49 Stat. 1987; Aug.
    26, 1937, ch. 822, Sec. 2, 50 Stat. 839; Pub. L. 97-31, Sec.
    12(63), Aug. 6, 1981, 95 Stat. 159.)
 
-REFTEXT-
                             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,
    Sec. 903(b), 49 Stat. 2016.
 
-MISC2-
                                 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.
 
-TRANS-
                           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.
 
-MISC5-
                      LIMITATIONS ON CONSTRUCTION FUND
      Acts July 30, 1947, ch. 359, title I, Sec. 101, 61 Stat. 603, and
    June 30, 1948, ch. 775, Sec. 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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1116a, 1242 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1116a                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1116a. Application to obligations against emergency ship
        construction fund
 
-STATUTE-
      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.
 
-SOURCE-
    (Mar. 22, 1947, ch. 20, title II, 61 Stat. 18; 1950 Reorg. Plan No.
    21, Sec. 306, eff.  May 24, 1950, 15 F.R. 3178, 64 Stat. 1277.)
 
-COD-
                                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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1117                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1117. Power to contract; audit of accounts; reports of
        Comptroller General
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 207, 49 Stat. 1988; June
    23, 1938, ch. 600, Sec. 2, 52 Stat. 954; Pub. L. 97-31, Sec.
    12(64), Aug. 6, 1981, 95 Stat. 159.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Act of March 20, 1922, ch. 104, 42 Stat. 444, referred to in
    text, is not classified to the Code.
 
-MISC2-
                                 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.
 
-TRANS-
                           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-
                              CROSS REFERENCES
      Advertisements for proposals for purchases and contracts for
    supplies or services, see section 5 of Title 41, Public Contracts.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 11 section 362.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1118                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1118. Reports to Congress
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 208, 49 Stat. 1988; Pub. L.
    94-273, Sec. 36, Apr. 21, 1976, 90 Stat. 380; Pub. L. 97-31, Sec.
    12(65), Aug. 6, 1981, 95 Stat. 159.)
 
-MISC1-
                                 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''.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1213, 1222 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1119                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1119. Authorization of appropriations
 
-STATUTE-
      (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) (FOOTNOTE 1) expenses necessary for additional training
      provided under section 1295d of this Appendix;
       (FOOTNOTE 1) See 1980 Amendment note below.
        (10) (FOOTNOTE 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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 209, 49 Stat. 1988; Aug.
    26, 1937, ch. 822, Sec. 3, 50 Stat. 839; Pub. L. 90-81, Sept. 5,
    1967, 81 Stat. 193; Pub. L. 91-469, Sec. 2, Oct. 21, 1970, 84 Stat.
    1018; Pub. L. 95-173, Sec. 6(a), Nov. 12, 1977, 91 Stat. 1360; Pub.
    L. 96-387, Sec. 4, Oct. 7, 1980, 94 Stat. 1546; Pub. L. 96-453,
    Sec. 3(a), Oct. 15, 1980, 94 Stat. 2008; Pub. L. 97-31, Sec.
    12(66), Aug. 6, 1981, 95 Stat. 159.)
 
-COD-
                                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.
 
-MISC3-
                                 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-
                              CROSS REFERENCES
      Application of construction fund to obligations against the
    emergency ship construction fund, see section 1116a of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1120                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1120. Survey of existing merchant marine for creation of
        adequate American-owned fleet
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 210, 49 Stat. 1989; Pub. L.
    91-469, Sec. 3, 35(a), Oct. 21, 1970, 84 Stat. 1018, 1035; Pub. L.
    97-31, Sec. 12(67), Aug. 6, 1981, 95 Stat. 159.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1970 - Pub. L. 91-469, Sec. 35(a), substituted ''Secretary of
    Commerce'' for ''Commission'', twice in introductory par. and once
    in par. ''First''.
      Par. First. Pub. L. 91-469, Sec. 3(1), struck out ''on all
    routes'' after ''shipping service''.
      Par. Fourth. Pub. L. 91-469, Sec. 3(2), added par. ''Fourth''.
                 COMMISSION ON MERCHANT MARINE AND DEFENSE
      Pub. L. 98-525, title XV, Sec. 1536, Oct. 19, 1984, 98 Stat.
    2633, as amended by Pub. L. 99-145, title XIV, Sec. 1431, Nov. 8,
    1985, 99 Stat. 754; Pub. L. 99-426, Sec. 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.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1191 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1121                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1121. Investigations, studies, records, etc.
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 211, 49 Stat. 1989; Pub. L.
    91-469, Sec. 4, 5, 35(a), (b), Oct. 21, 1970, 84 Stat. 1018, 1035;
    Pub. L. 97-31, Sec. 12(67), Aug. 6, 1981, 95 Stat. 159.)
 
-MISC1-
                                 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, Sec. 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, Sec. 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, Sec. 4(3), added subsec. (b). Former
    subsec. (b) redesignated (c).
      Subsec. (c). Pub. L. 91-649, Sec. 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, Sec. 4(2), redesignated former
    subsec. (c) as (d). Former subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 91-469, Sec. 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, Sec. 4(2), redesignated
    former subsecs. (e) to (i) as (f) to (j), respectively.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1125, 1171, 1173, 1204,
    1213, 1222 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1121-1                       01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1121-1. Priority loading for vessels engaged in coastwise
        transportation of coal; exception, report to Congress
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 96-387, Sec. 5, Oct. 7, 1980, 94 Stat. 1546; Pub. L.
    97-31, Sec. 12(68), Aug. 6, 1981, 95 Stat. 159; Pub. L. 99-662,
    title IX, Sec. 947, Nov. 17, 1986, 100 Stat. 4200.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.
 
-MISC3-
                                 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''.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1121-2                       01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1121-2. National Maritime Enhancement Institutes
 
-STATUTE-
    (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.
 
-SOURCE-
    (Pub. L. 101-115, Sec. 8, Oct. 13, 1989, 103 Stat. 694; Pub. L.
    101-595, title VII, Sec. 702, Nov. 16, 1990, 104 Stat. 2994; Pub.
    L. 102-241, Sec. 47, Dec. 19, 1991, 105 Stat. 2227.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.
 
-MISC3-
                                 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.''
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1122                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1122. Maritime problems; cooperation with others; cargo
        carriage; recommendations
 
-STATUTE-
      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, Sec. 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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 212, 49 Stat. 1990; Pub. L.
    90-268, Sec. 1, Mar. 16, 1968, 82 Stat. 49; Pub. L. 97-31, Sec.
    12(69), Aug. 6, 1981, 95 Stat. 159; Pub. L. 98-237, Sec. 20(a),
    (c), Mar. 20, 1984, 98 Stat. 88, 90.)
 
-MISC1-
                                 AMENDMENTS
      1984 - Subsec. (e). Pub. L. 98-237, Sec. 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, Sec. 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 (Sec. 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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1122a                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1122a. Vessel utilization and performance reports; filing;
        civil penalty; lien upon vessel; remission or mitigation of
        penalty
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 212(A), as added June 25,
    1956, ch. 437, 70 Stat. 332; amended Pub. L. 97-31, Sec. 12(70),
    Aug. 6, 1981, 95 Stat. 159.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
 
-CROSS-
                      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 46 section 2306.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1122b                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1122b. Mobile trade fairs
 
-STATUTE-
    (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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 212(B), as added Pub. L.
    87-839, Sec. 1, Oct. 18, 1962, 76 Stat. 1074; amended Pub. L.
    89-66, July 7, 1965, 79 Stat. 211; Pub. L. 90-434, July 27, 1968,
    82 Stat. 449; Pub. L. 100-418, title X, Sec. 10003(a), Aug. 23,
    1988, 102 Stat. 1572.)
 
-MISC1-
                                 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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1123                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1123. Obsolete tonnage; tramp service
 
-STATUTE-
      The Secretary of Transportation shall make studies of and make
    reports to Congress on the following:
        (1) The scrapping or removal from service of old or obsolete
      merchant tonnage owned by the United States or in use in the
      merchant marine.
        (2) Tramp shipping service and the advisability of citizens of
      the United States participating in such service with vessels
      under United States registry.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 213, 49 Stat. 1991; Pub. L.
    87-877, Sec. 2(c), (d), Oct. 24, 1962, 76 Stat. 1201; Pub. L.
    94-273, Sec. 27, Apr. 21, 1976, 90 Stat. 380; Pub. L. 97-31, Sec.
    12(71), Aug. 6, 1981, 95 Stat. 159; Pub. L. 105-85, div.  C, title
    XXXVI, Sec. 3602, Nov. 18, 1997, 111 Stat. 2075.)
 
-MISC1-
                                 AMENDMENTS
      1997 - Pub. L. 105-85 substituted ''on the following:'' for ''on
    - '' in introductory provisions, redesignated subsecs. (a) and (b)
    as pars. (1) and (2), respectively, and realigned margins,
    substituted period for semicolon at end of par. (1), directed
    substitution of period for semicolon at end of par. (2) which could
    not be executed because par. (2) already contained period at end,
    and struck out subsec. (c) which read as follows: ''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.''
      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).
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1124                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1124. Witnesses
 
-STATUTE-
    (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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 214, 49 Stat. 1991; June
    23, 1938, ch. 600, Sec. 3, 52 Stat. 954; Pub. L. 91-452, title II,
    Sec. 241, Oct. 15, 1970, 84 Stat. 930; Pub. L. 97-31, Sec. 12(72),
    Aug. 6, 1981, 95 Stat. 159; Pub. L. 98-237, Sec. 20(a), Mar. 20,
    1984, 98 Stat. 89; Pub. L. 98-595, Sec. 2, Oct. 30, 1984, 98 Stat.
    3132.)
 
-MISC1-
                                 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, Sec. 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, Sec. 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 (Sec. 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.
 
-TRANS-
                           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-
                      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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1125                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1125. Acquisition of vessels
 
-STATUTE-
      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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title II, Sec. 215, as added June 23,
    1938, ch. 600, Sec. 4, 52 Stat. 954; amended Pub. L. 86-518, Sec.
    1, June 12, 1960, 74 Stat. 216; Pub. L. 97-31, Sec. 12(73), Aug. 6,
    1981, 95 Stat. 160.)
 
-MISC1-
                                 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.''
 
-TRANS-
                           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.
 
-MISC5-
      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.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1152 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1125a                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 1125a. Construction, repair, etc., of vessels for Government
        agencies
 
-STATUTE-
      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.
 
-SOURCE-
    (Feb. 6, 1941, ch. 5, Sec. 4, 55 Stat. 6; Pub. L. 97-31, Sec.
    12(74), Aug. 6, 1981, 95 Stat. 160.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.
 
-MISC3-
                                 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.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1126-1                       01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER II - CREATION AND FUNCTIONS OF MARITIME AGENCIES
 
-HEAD-
    Sec. 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
 
-STATUTE-
      (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.
 
-SOURCE-
    (Pub. L. 94-361, title VI, Sec. 603, July 14, 1976, 90 Stat. 929;
    Pub. L. 97-31, Sec. 12(76), Aug. 6, 1981, 95 Stat. 160.)
 
-COD-
                                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.
 
-MISC3-
                                 AMENDMENTS
      1981 - Subsec. (b). Pub. L. 97-31 substituted ''Maritime
    Administrator'' for ''Assistant Secretary of Commerce for Maritime
    Affairs''.
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER III - AMERICAN
                  SEAMEN                                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER III - AMERICAN SEAMEN
    .
 
-HEAD-
    SUBCHAPTER III - AMERICAN SEAMEN
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1131                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER III - AMERICAN SEAMEN
 
-HEAD-
    Sec. 1131. Manning and wage scales; subsidy contracts
 
-STATUTE-
    (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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title III, Sec. 301, 49 Stat. 1992; June
    23, 1938, ch. 600, Sec. 5, 6, 52 Stat. 955; 1946 Reorg. Plan No. 3,
    Sec. 101-104, eff.  July 16, 1946, 11 F.R. 7875, 60 Stat. 1097;
    Pub. L. 97-31, Sec. 12(82), Aug. 6, 1981, 95 Stat. 160.)
 
-MISC1-
                                 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, Sec. 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, Sec. 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.
 
-TRANS-
                           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, Sec. 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, Sec. 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, Sec. 101-104, set out as a
    note preceding section 3 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1132                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER III - AMERICAN SEAMEN
 
-HEAD-
    Sec. 1132. Reemployment rights for certain merchant seamen
 
-STATUTE-
    (a) In general
      An individual who is certified by the Secretary of Transportation
    under subsection (c) of this section shall be entitled to
    reemployment rights and other benefits substantially equivalent to
    the rights and benefits provided for by chapter 43 of title 38 for
    any member of a Reserve component of the Armed Forces of the United
    States who is ordered to active duty.
    (b) Time for application
      An individual may submit an application for certification under
    subsection (c) of this section to the Secretary of Transportation
    not later than 45 days after the date the individual completes a
    period of employment described in subsection (c)(1)(A) of this
    section with respect to which the application is submitted.
    (c) Certification determination
      Not later than 20 days after the date the Secretary of
    Transportation receives from an individual an application for
    certification under this subsection, the Secretary shall -
        (1) determine whether or not the individual -
          (A) was employed in the activation or operation of a vessel -
            (i) in the National Defense Reserve Fleet maintained under
          section 1744 of Title 50, Appendix, in a period in which that
          vessel was in use or being activated for use under subsection
          (b) of that section;
            (ii) that is requisitioned or purchased under section 1242
          of this Appendix; or
            (iii) that is owned, chartered, or controlled by the United
          States and used by the United States for a war, armed
          conflict, national emergency, or maritime mobilization need
          (including for training purposes or testing for readiness and
          suitability for mission performance); and
          (B) during the period of that employment, possessed a valid
        license, certificate of registry, or merchant mariner's
        document issued under chapter 71 or chapter 73 (as applicable)
        of title 46; and
        (2) if the Secretary makes affirmative determinations under
      paragraph (1)(A) and (B), certify that individual under this
      subsection.
    (d) Equivalence to Military Selective Service Act certificate
      For purposes of reemployment rights and benefits provided by this
    section, a certification under subsection (c) of this section shall
    be considered to be the equivalent of a certificate referred to in
    paragraph (1) of section 4301(a) of title 38. (FOOTNOTE 1)
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (June 29, 1936, ch. 858, title III, Sec. 302, as added Pub. L.
    104-239, Sec. 10(a), Oct. 8, 1996, 110 Stat. 3133.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      A certificate referred to in paragraph (1) of section 4301(a) of
    title 38, referred to in subsec. (d), probably means a certificate
    described in section 9(a) of the Military Selective Service Act (50
    App. U.S.C. 459(a)), which was referred to in section 4301(a)(1) of
    Title 38, Veterans' Benefits, prior to the general amendment of
    that section by section 2(a) of Pub. L. 103-353. For text of former
    section 4301 of Title 38, see Codification note set out preceding
    section 4301 of Title 38.
 
-MISC2-
                              PRIOR PROVISIONS
      A prior section 1132 of former Title 46, Shipping, acts June 29,
    1936, ch. 858, title III, Sec. 302, 49 Stat. 1992; Aug. 6, 1981,
    Pub. L. 97-31, Sec. 12(83), 95 Stat. 160, related to citizenship of
    officers and crew prior to repeal by Pub. L. 98-89, Sec. 4(b), Aug.
    26, 1983, 97 Stat. 603. See sections 7102 and 8103 of Title 46,
    Shipping.
                               EFFECTIVE DATE
      Section 10(b) of Pub. L. 104-239 provided that: ''The amendment
    made by subsection (a) (enacting this section), shall apply to
    employment described in section 302(c)(1)(A) of the Merchant Marine
    Act, 1936 (subsec. (c)(1)(A) of this section), as amended by
    subsection (a), occurring after the date of enactment of this Act
    (Oct. 8, 1996).''
                                REGULATIONS
      Section 10(c) of Pub. L. 104-239 provided that: ''Not later than
    120 days after the date of the enactment of this Act (Oct. 8,
    1996), the Secretary of Transportation shall issue regulations
    implementing this section (enacting this section and provisions set
    out as a note above).''
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER V -
                  CONSTRUCTION-DIFFERENTIAL SUBSIDY              01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
    .
 
-HEAD-
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in sections 1161, 1191, 1193,
    1204, 1212, 1228, 1244, 1274 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1151                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1151. Subsidy authorized for vessels to be operated in foreign
        trade
 
-STATUTE-
    (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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 501, 49 Stat. 1995; June 23,
    1938, ch. 600, Sec. 8, 52 Stat. 955; July 17, 1952, ch. 939, Sec.
    1, 2, 66 Stat. 760, 761; Pub. L. 91-469, Sec. 6, 35(a), (c), (d),
    Oct. 21, 1970, 84 Stat. 1019, 1035; Pub. L. 91-603, Sec. 4(a), Dec.
    31, 1970, 84 Stat. 1675; Pub. L. 97-31, Sec. 12(84), Aug. 6, 1981,
    95 Stat. 161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1970 - Pub. L. 91-469, Sec. 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, Sec. 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, Sec. 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, Sec. 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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1152, 1173 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1152                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1152. Construction of vessels; bids; subsidies
 
-STATUTE-
    (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, Sec. 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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 502, 49 Stat. 1996; June 23,
    1938, ch. 600, Sec. 9-14, 52 Stat. 955-957; Aug. 4, 1939, ch. 417,
    Sec. 6, 53 Stat. 1183; July 26, 1956, ch. 737, 70 Stat. 657; Pub.
    L. 86-518, Sec. 1, 2, June 12, 1960, 74 Stat. 216; Pub. L. 86-607,
    Sec. 1, July 7, 1960, 74 Stat. 362; Pub. L. 87-877, Sec. 1, 2(a),
    (e), (f), Oct. 24, 1962, 76 Stat. 1200, 1201; Pub. L. 88-370, July
    11, 1964, 78 Stat. 313; Pub. L. 88-410, Sec. 1, Aug. 10, 1964, 78
    Stat. 385; Pub. L. 89-127, Aug. 14, 1965, 79 Stat. 519; Pub. L.
    89-589, Sept. 19, 1966, 80 Stat. 811; Pub. L. 90-572, Oct. 12,
    1968, 82 Stat. 1004; Pub. L. 91-40, July 8, 1969, 83 Stat. 44; Pub.
    L. 91-469, Sec. 7, 35(a), (e)-(g), Oct. 21, 1970, 84 Stat. 1019,
    1035, 1036; Pub. L. 91-603, Sec. 4(b), Dec. 31, 1970, 84 Stat.
    1675; Pub. L. 93-71, July 10, 1973, 87 Stat. 169; Pub. L. 94-372,
    Sec. 2, 3, July 31, 1976, 90 Stat. 1042; Pub. L. 96-210, Mar. 17,
    1980, 94 Stat. 100; Pub. L. 96-387, Sec. 3, Oct. 7, 1980, 94 Stat.
    1545; Pub. L. 97-31, Sec. 12(84), (85), Aug. 6, 1981, 95 Stat.
    161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Subsecs. (a), (b). Pub. L. 97-31, Sec. 12(84), substituted
    ''Secretary of Transportation'' for ''Secretary of Commerce''
    wherever appearing.
      Subsec. (c). Pub. L. 97-31, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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 3 1/2 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 3 1/2 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 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 33 1/3 per centum of construction
    cost, increased to 50 per centum on affirmative vote of two Board
    members.
      Subsec. (c). Pub. L. 86-518, Sec. 1, substituted ''twenty-five''
    for ''twenty'' in two places.
      Subsec. (d). Pub. L. 86-607, Sec. 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, Sec. 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, Sec. 9, substituted ''of
    the contract price of the vessel'' for ''the cost of the vessel''.
      Subsec. (b). Act June 23, 1938, Sec. 10, permitted negotiations
    and contracts to build vessels in domestic shipyards in cases where
    the construction differential exceeds 33 1/3 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, Sec. 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 3 1/2 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, Sec. 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, Sec. 13, added subsec. (f).
      Subsec. (g). Act June 23, 1938, Sec. 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.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1154 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1153                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1153. Documentation of completed vessel under laws of United
        States; delivery to purchaser; first mortgage to secure
        deferred payments
 
-STATUTE-
      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) (FOOTNOTE 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 encumbrances, condition, and class, may, to
    the extent covered by valid policies of insurance, be satisfied by
    the assignment to the United States of claims of the purchaser
    under such policies of insurance.  The purchaser shall also comply
    with all the provisions of section 868 of this Appendix.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 503, 49 Stat. 1997; June 23,
    1938, ch. 600, Sec. 15, 52 Stat. 957; July 17, 1952, ch. 939, Sec.
    3, 66 Stat. 761; Pub. L. 86-518, Sec. 1, June 12, 1960, 74 Stat.
    216; Pub. L. 91-469, Sec. 8, 35(a), Oct. 21, 1970, 84 Stat. 1021,
    1035; Pub. L. 97-31, Sec. 12(84), Aug. 6, 1981, 95 Stat. 161.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 1737 of the Appendix to title 50, referred to in text,
    was repealed by Pub. L. 101-225, title III, Sec. 307(12), Dec. 12,
    1989, 103 Stat. 1925.
 
-MISC2-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1970 - Pub. L. 91-469 substituted ''purchaser'' for ''applicant''
    in three places, ''sale between the purchaser and the Secretary of
    Commerce'' for ''purchase between the applicant and the
    Commission'' in first sentence; and ''Secretary of Commerce'' for
    ''Commission'', in four places, respectively.
      1960 - Pub. L. 86-518 substituted ''twenty-five years'' for
    ''twenty years''.
      1952 - Act July 17, 1952, amended section to provide that as to
    passenger vessels delivered after Mar. 8, 1946, the balance of the
    payments shall be secured by a first preferred mortgage, that the
    purchasers' obligation to pay will be discharged by surrender of
    the vessel and all rights to the Government, and to set up
    conditions governing type of vessel.
      1938 - Act June 23, 1938, amended section generally, substituting
    ''construction-differential subsidy'' for ''construction subsidy'',
    and ''or so long as there remains due'' for ''and so long as there
    remains due''.
                      EFFECTIVE DATE OF 1960 AMENDMENT
      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.
     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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1154, 1159, 1162 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1154                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 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
 
-STATUTE-
      If a qualified purchaser under the terms of this subchapter
    desires to purchase a vessel to be constructed in accordance with
    an application for construction-differential subsidy under this
    subchapter, the Secretary of Transportation may, in lieu of
    contracting to pay the entire cost of the vessel under section 1152
    of this Appendix, contract to pay only construction-differential
    subsidy and the cost of national defense features to the shipyard
    constructing such vessel.  The construction-differential subsidy
    and payments for the cost of national defense features shall be
    based upon the lowest responsible domestic bid unless the vessel is
    constructed at a negotiated price as provided by section 1152(a) of
    this Appendix or under a contract negotiated by the Secretary of
    Transportation as provided in section 1152(b) of this Appendix in
    which event the construction-differential subsidy and payments for
    the cost of national defense features shall be based upon such
    negotiated price.  No construction-differential subsidy, as
    provided in this section, shall be paid unless the said contract or
    contracts or other arrangements contain such provisions as are
    provided in this subchapter to protect the interests of the United
    States as the Secretary of Transportation deems necessary.  Such
    vessel shall be documented under the laws of the United States as
    provided in section 1153 of this Appendix. 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.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 504, 49 Stat. 1998; June 23,
    1938, ch. 600, Sec. 16, 52 Stat. 958; July 17, 1952, ch. 939, Sec.
    4, 66 Stat. 761; Pub. L. 91-469, Sec. 9, 35(a), Oct. 21, 1970, 84
    Stat. 1021, 1035; Pub. L. 97-31, Sec. 12(84), Aug. 6, 1981, 95
    Stat. 161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1970 - Pub. L. 91-469, provided a negotiated price as an
    alternative basis for payment of subsidy and cost of national
    defense features, and substituted ''Secretary of Commerce'' for
    ''Commission'', respectively.
      1952 - Act July 17, 1952, inserted provision that the lawful or
    proper use of the vessel may not be restricted.
      1938 - Act June 23, 1938, substituted ''domestic shipyards'' for
    ''American shipyards'', struck out ''and if it is the lowest bid''
    after ''fair and reasonable'', and changed ''construction subsidy''
    to ''construction-differential subsidy''.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1155                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1155. Eligible shipyards; materials; conditions of contracts;
        limitation to American shipyards; American materials, waiver;
        ability of bidders; filing bids and data
 
-STATUTE-
      All construction in respect of which a construction-differential
    subsidy is allowed under this subchapter shall be performed in a
    shipyard of the United States as the result of competitive bidding,
    after due advertisement, with the right reserved in the Secretary
    of Transportation to disapprove, any or all bids.  In all such
    construction the shipbuilder, subcontractors, materialmen, or
    suppliers shall use, so far as practicable, only articles,
    materials, and supplies of the growth, production, or manufacture
    of the United States as defined in paragraph K (FOOTNOTE 1) of
    section 1401 of title 19; Provided, however, That with respect to
    other than major components of the hull, superstructure, and any
    material used in the construction thereof, (1) if the Secretary of
    Transportation determines that the requirements of this sentence
    will unreasonably delay completion of any vessel beyond its
    contract delivery date, and (2) if such determination includes or
    is accompanied by a concise explanation of the basis therefor, then
    the Secretary of Transportation may waive such requirements to the
    extent necessary to prevent such delay.  No shipbuilder shall be
    deemed a responsible bidder unless he possesses the ability,
    experience, financial resources, equipment, and other
    qualifications necessary properly to perform the proposed
    contract.  Each bid submitted to the Secretary of Transportation
    shall be accompanied by all detailed estimates upon which it is
    based.  The Secretary of Transportation may require that the bids
    of any subcontractors, or other pertinent data, accompany such
    bid.  All such bids and data relating thereto shall be kept on file
    until disposed of as provided by law.  For the purposes of this
    subchapter V, the term ''shipyard of the United States'' means
    shipyards within any of the United States and the Commonwealth of
    Puerto Rico.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 505, 49 Stat. 1998; June 23,
    1938, ch. 600, Sec. 17, 40(a), 52 Stat. 958, 964; Oct. 25, 1951,
    ch. 562, Sec. 3(4), 65 Stat. 639; Pub. L. 86-624, Sec. 35(a), July
    12, 1960, 74 Stat. 421; Pub. L. 91-469, Sec. 10, 35(a), Oct. 21,
    1970, 84 Stat. 1022, 1035; Pub. L. 97-31, Sec. 12(84), Aug. 6,
    1981, 95 Stat. 161.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Paragraph K of section 1401 of title 19, referred to in text,
    which was classified to par. (k) of section 1401 of Title 19,
    Customs Duties, was redesignated par. (h) of section 1401 of Title
    19 by Pub. L. 91-271, title III, Sec. 301(c)(1), June 2, 1970, 84
    Stat. 288.
 
-MISC2-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1970 - Pub. L. 91-469 struck out subsec. (a) designation, struck
    out of first sentence ''within the continental limits'' and ''the
    applicant to reject, and in'' after ''shipyard'' and ''right
    reserved in'', provided for waiver of use of American materials,
    substituted definition of ''shipyard of the United States'' for
    definition of ''continental limits of the United States'', and
    struck out: subsec. (b) provisions for conditions of contracts,
    reports as to costs and net profits, limitation on profit, payment
    to Secretary of excess profit, subdivision of contracts, inspection
    of records and premises, and contracts for scientific equipment;
    subsec. (c) provisions as to method of determining profit and
    limitation on salaries; subsec. (d) provisions for utilization of
    Treasury Department employees; and subsec. (e) provisions for
    rescinding approval of bid on refusal of bidder to comply with
    conditions, new bids, and construction in navy yards; and
    substituted ''Secretary of Commerce'' for ''Commission'' in three
    places, respectively.
      1960 - Subsec. (a). Pub. L. 86-624 inserted definition of
    ''continental limits of the United States.''
      1951 - Subsec. (a). Act Oct. 25, 1951, substituted ''on file
    until disposed of as provided by law'' for ''permanently on file''
    in last sentence.
      1938 - Subsec. (a). Act June 23, 1938, Sec. 40(a), substituted
    ''construction-differential subsidy is allowed'' for ''subsidy is
    allowed''.
      Subsec. (b). Act June 23, 1938, Sec. 17, made section
    inapplicable to contracts or other arrangements entered into under
    this subchapter by the terms of which the United States undertakes
    to pay only for national-defense features.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1152, 1176 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1156                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1156. Operation of subsidy constructed vessel limited to
        foreign trade; repayments to Secretary for deviations
 
-STATUTE-
      Every owner of a vessel for which a construction-differential
    subsidy has been paid shall agree that the vessel shall be operated
    exclusively in foreign trade, or on a round-the-world voyage, or on
    a round voyage from the west coast of the United States to a
    European port or ports which includes intercoastal ports of the
    United States, or a round voyage from the Atlantic coast of the
    United States to the Orient which includes intercoastal ports of
    the United States, or on a voyage in foreign trade on which the
    vessel may stop at the State of Hawaii, or an island possession or
    island territory of the United States, and that if the vessel is
    operated in the domestic trade on any of the above-enumerated
    services, he will pay annually to the Secretary of Transportation
    that proportion of one-twenty-fifth of the
    construction-differential subsidy paid for such vessel as the gross
    revenue derived from the domestic trade bears to the gross revenue
    derived from the entire voyages completed during the preceding
    year.  The Secretary may consent in writing to the temporary
    transfer of such vessel to service other than the service covered
    by such agreement for periods not exceeding six months in any year,
    whenever the Secretary may determine that such transfer is
    necessary or appropriate to carry out the purposes of this
    chapter.  Such consent shall be conditioned upon the agreement by
    the owner to pay to the Secretary, upon such terms and conditions
    as he may prescribe, an amount which bears the same proportion to
    the construction-differential subsidy paid by the Secretary as such
    temporary period bears to the entire economic life of the vessel.
    No operating-differential subsidy shall be paid for the operation
    of such vessel for such temporary period.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 506, 49 Stat. 1999; June 23,
    1938, ch. 600, Sec. 18, 52 Stat. 958; Mar. 18, 1959, Pub. L. 86-3,
    Sec. 18(b)(1), 73 Stat. 12; Pub. L. 86-518, Sec. 3, June 12, 1960,
    74 Stat. 216; Pub. L. 97-31, Sec. 12(87), Aug. 6, 1981, 95 Stat.
    161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Commission'' the first time it appeared and ''Secretary'' for
    ''Commission'' the next four times it appeared.  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 ''one-twenty-fifth'' for
    ''one-twentieth''.
      1959 - Pub. L. 86-3 included stops at the State of Hawaii for
    vessels operated on voyages in foreign trade.
      1938 - Act June 23, 1938, made changes in phraseology and
    substituted ''construction-differential subsidy'' for
    ''construction subsidy''.
                      EFFECTIVE DATE OF 1960 AMENDMENT
      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.
 
-TRANS-
                           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.
 
-MISC5-
     REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES,
      AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12,
     1960, AMENDMENT OF CONTRACTS DEALING WITH VESSELS HAVING EXTENDED
                                    LIFE
      For provisions authorizing revision and amendment of certain
    contracts, see section 8(c) of Pub. L. 86-518, as amended, 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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1162, 1177, 1183 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1157                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1157. Construction of new vessel to replace obsolete; purchase
        of old vessel by Secretary; bond of seller against liens
 
-STATUTE-
      If a contract is made by the Secretary of Transportation under
    authority of this subchapter for the construction and sale of a new
    vessel to replace a vessel then operated in foreign trade or
    domestic trade, which in the judgment of the Secretary of
    Transportation should be replaced because it is obsolete or
    inadequate for successful operation in such trade, the Secretary of
    Transportation is authorized, in his discretion, to buy such
    replaced vessel from the owner at a fair and reasonable valuation,
    which valuation shall not exceed the cost to the owner or any
    former owner plus the actual cost previously expended thereon for
    reconditioning, and less a reasonable and proper depreciation,
    based upon not more than twenty-five-year life of the vessel, and
    apply the purchase price agreed upon to that portion of the
    construction cost of such new vessel which is to be borne by the
    purchaser thereof: Provided, That the owner of such replaced vessel
    shall execute a bond, with one or more approved sureties,
    conditioned upon indemnifying the United States from all loss
    resulting from any existing lien against such vessel: And provided
    further, That such vessel has been documented under the laws of the
    United States for a period of at least ten years prior to the date
    of its purchase by the United States.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 507, 49 Stat. 2000; June 23,
    1938, ch. 600, Sec. 19, 52 Stat. 959; July 17, 1952, ch. 939, Sec.
    5, 66 Stat. 761; Pub. L. 86-518, Sec. 1, June 12, 1960, 74 Stat.
    216; Pub. L. 97-31, Sec. 12(88), Aug. 6, 1981, 95 Stat. 161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Commission'' in three places and ''his'' for ''its''. 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'' for
    ''twenty-year life''.
      1952 - Act July 17, 1952, made section applicable to vessels in
    domestic trade.
      1938 - Act June 23, 1938, struck out provisions which authorized
    a deduction for obsolescence.
                      EFFECTIVE DATE OF 1960 AMENDMENT
      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.
 
-TRANS-
                           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.
 
-MISC5-
      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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1158                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1158. Disposition of vessels transferred to Maritime
        Administration of Department of Transportation
 
-STATUTE-
      If the Secretary of Transportation shall determine that any
    vessel transferred to the Maritime Administration of the Department
    of Transportation by section 1112 of this Appendix, or hereafter
    acquired, is of insufficient value for commercial or military
    operation to warrant its further preservation, the Secretary of
    Transportation is authorized (1) to scrap said vessel, or (2) to
    sell such vessel for cash, after appraisement and due
    advertisement, and upon competitive sealed bids, either to citizens
    of the United States or to aliens: Provided, That the purchaser
    thereof shall enter into an undertaking with sureties approved by
    the Secretary of Transportation that such vessel shall not be
    operated in the foreign commerce of the United States at any time
    within the period of ten years after the date of the sale, in
    competition with any other vessel owned by a citizen or citizens of
    the United States and registered under the laws thereof.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 508, 49 Stat. 2000; Pub. L.
    97-31, Sec. 12(89), Aug. 6, 1981, 95 Stat. 161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Commission'' in three places and ''the Maritime
    Administration of the Department of Transportation'' for ''it''.
    For prior transfers of functions of the Commission, meaning the
    United States Maritime Commission, see Transfer of Functions note
    below.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 10 section 2218; title 16
    section 5405.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1159                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1159. Vessels to be operated in domestic trade; terms and
        conditions of construction aid and sale to purchaser
 
-STATUTE-
      Any citizen of the United States may make application to the
    Secretary of Transportation for aid in the construction of a new
    vessel to be operated in the foreign or domestic trade (excepting
    vessels engaged solely in the transportation of property on inland
    rivers and canals exclusively).  If such application is approved by
    the Secretary of Transportation, the vessel may be constructed
    under the terms and conditions of this subchapter, but no
    construction-differential subsidy shall be allowed.  The Secretary
    of Transportation shall pay for the cost of national-defense
    features incorporated in such vessel.  In case the vessel is
    designed to be of not less than three thousand five hundred gross
    tons and to be capable of sustained speed of not less than ten
    knots, or in the case of a passenger vessel operating solely on the
    inland rivers and waterways which is designed to be of not less
    than one thousand gross tons and to be capable of sustained speed
    of not less than eight knots, or in the case of a ferry operating
    solely in point-to-point transportation which is designed to be of
    not less than seventy-five gross tons and to be capable of a
    sustained speed of not less than eight knots, in the case of an
    oceangoing tug of more than two thousand five hundred horsepower or
    oceangoing barge of more than two thousand five hundred gross tons,
    or in the case of a vessel of more than two thousand five hundred
    horsepower designed to be capable of sustained speed of not less
    than forty knots, the purchaser shall be required to pay the
    Secretary of Transportation not less than 12 1/2 per centum of the
    cost of such vessel, and in the case of any other vessel the
    purchaser shall be required to pay the Secretary of Transportation
    not less than 25 per centum of the cost of such vessel (excluding
    from such cost, in either case, the cost of national defense
    features); and the balance of such purchase price shall be paid by
    the purchaser within twenty-five years in not to exceed twenty-five
    equal annual installments, with interest at a rate not less than
    (i) a rate determined by the Secretary of the Treasury, taking into
    consideration the current average market yield on outstanding
    marketable obligations of the United States with remaining periods
    to maturity comparable to the average maturities of such loans,
    adjusted to the nearest one-eighth of 1 per centum, plus (ii) an
    allowance adequate in the judgment of the Secretary of
    Transportation to cover administrative costs, the balance of such
    purchase price being secured by a preferred mortgage on the vessel
    sold and otherwise secured as the Secretary of Transportation may
    determine: Provided, That, notwithstanding any other provisions of
    law, the balance of the purchase price of a passenger vessel
    constructed under this section which is delivered subsequent to
    March 8, 1946, and which has the tonnage, speed, passenger
    accommodations, and other characteristics set forth in section 1153
    of this Appendix, may, with the approval of the Secretary of
    Transportation, be secured as provided in such section, and the
    obligation of the purchaser of such a vessel shall be satisfied and
    discharged as provided in such section.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 509, 49 Stat. 2000; June 23,
    1938, ch. 600, Sec. 20, 52 Stat. 959; June 6, 1939, ch. 186, 53
    Stat. 810; July 17, 1952, ch. 939, Sec. 6, 66 Stat. 761; Pub. L.
    86-518, Sec. 1, June 12, 1960, 74 Stat. 216; Pub. L. 87-877, Sec.
    2(b), Oct. 24, 1962, 76 Stat. 1200; Pub. L. 90-183, Dec. 10, 1967,
    81 Stat. 559; Pub. L. 90-214, Dec. 18, 1967, 81 Stat. 660; Pub. L.
    91-469, Sec. 11, Oct. 21, 1970, 84 Stat. 1022; Pub. L. 92-374, Aug.
    10, 1972, 86 Stat. 528; Pub. L. 95-173, Sec. 8, Nov. 12, 1977, 91
    Stat. 1360; Pub. L. 95-505, Oct. 24, 1978, 92 Stat. 1755; Pub. L.
    97-31, Sec. 12(90), Aug. 6, 1981, 95 Stat. 161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1978 - Pub. L. 95-505 substituted ''ten knots'' for ''fourteen
    knots''.
      1977 - Pub. L. 95-173 inserted '', or in the case of a ferry
    operating solely in point-to-point transportation which is designed
    to be of not less than seventy-five gross tons and to be capable of
    a sustained speed of not less than eight knots'' after ''less than
    eight knots''.
      1972 - Pub. L. 92-374 inserted ''or in the case of a vessel of
    more than two thousand five hundred horsepower designed to be
    capable of sustained speed of not less than forty knots'' in
    sentence dealing with percentage of cost payable by purchaser,
    after ''barge of more than two thousand five hundred gross tons''.
      1970 - Pub. L. 91-469 substituted ''Secretary of Commerce'' for
    ''Commission'' in seven places, ''purchaser'' for ''applicant'' in
    first three places, and provision for a rate of interest 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 3 1/2 per centum
    per annum.
      1967 - Pub. L. 90-214 included provision for oceangoing tugs of
    more than two thousand five hundred horsepower or oceangoing barges
    of more than two thousand five hundred gross tons.
      Pub. L. 90-183 inserted ''or in the case of a passenger vessel
    operating solely on the inland rivers and waterways which is
    designed to be of not less than one thousand gross tons and to be
    capable of sustained speed of not less than eight knots'' after
    ''fourteen knots,''.
      1962 - Pub. L. 87-877 struck out second proviso which, in the
    case of a vessel to be constructed under this section, gave a
    preference to an applicant who had his principal place of business
    on the Pacific coast of the United States, but not including one in
    business on or before Aug. 1, 1935, who subsequently changed his
    principal place of business to the Pacific coast, if such vessel
    was to be operated from such coast, the amount of the lowest
    responsible shipyard bid did not exceed by more than six per
    centum, a bid by such a shipyard on the Atlantic coast, and a port
    on the Pacific coast was designated and continued as the home port
    of the vessel, which set a lower rate of interest on deferred
    payments that would otherwise be applicable with respect to periods
    of construction of such vessel and its operation exclusively in
    coastwise, intercoastal, and other domestic trade, and which
    enumerated four conditions under which such lower interest rate
    would not apply.
      1960 - Pub. L. 86-518 substituted ''twenty-five'' for ''twenty''
    in two places.
      1952 - Act July 17, 1952, provided that as to vessels delivered
    after Mar. 8, 1946, the balance of the payments shall be secured by
    a first preferred mortgage and that the purchaser's obligation to
    pay will be discharged by surrender of the vessel and all rights to
    the Government.
      1939 - Act June 6, 1939, struck out ''except as otherwise
    provided in this title'' after ''no construction-differential
    subsidy shall be allowed'', and inserted provisions requiring the
    applicant to pay not less than 12 1/2 per centum of the cost in
    case the vessel is designed to be of not less than 3,500 gross tons
    and to be capable of a sustained speed of not less than 14 knots.
      1938 - Act June 23, 1938, substituted ''foreign or domestic
    trade'' for ''domestic trade'', and inserted provisions requiring
    the Commission to pay for the cost of national-defense features.
                      EFFECTIVE DATE OF 1960 AMENDMENT
      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.
     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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1152, 1274 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1160                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1160. Acquisition of obsolete vessels
 
-STATUTE-
    (a) Definitions
      When used in this section -
        (1) The term ''obsolete vessel'' means a vessel or vessels,
      each of which (A) is of not less than one thousand three hundred
      and fifty gross tons, (B) in the judgment of the Secretary of
      Transportation, should, by reason of age, obsolescence, or
      otherwise, be replaced in the public interest and (C) has been
      owned by a citizen or citizens of the United States for at least
      three years immediately prior to the date of acquisition
      hereunder.
        (2) The term ''new vessel'' means a vessel or vessels, each of
      which (A) is constructed under the provisions of this chapter,
      and is acquired within two years from the date of completion of
      such vessel, or is purchased under section 1204 of this Appendix,
      as amended, by the person turning in an obsolete vessel under
      this section, or (B) is hereafter constructed in a domestic
      shipyard on private account and not under the provisions of this
      chapter, and documented under the laws of the United States.
    (b) Promotion of construction of new vessels; allowance on obsolete
        vessels
      In order to promote the construction of new, safe, and efficient
    vessels to carry the domestic and foreign waterborne commerce of
    the United States, the Secretary of Transportation is authorized,
    subject to the provisions of this section, to acquire any obsolete
    vessel in exchange for an allowance of credit.  The obsolete vessel
    shall be acquired by the Secretary of Transportation, if the owner
    so requests, either at the time the owner contracts for the
    construction or purchase of a new vessel or within five days of the
    actual date of delivery of the new vessel to the owner.  The amount
    of the allowance shall be determined at the time of the acquisition
    of the obsolete vessel by the Secretary of Transportation. In the
    event the obsolete vessel is acquired by the Secretary of
    Transportation at the time the owner contracts for the construction
    or purchase of the new vessel, the allowance shall not be paid to
    the owner of the obsolete vessel, but shall be applied upon the
    purchase price of a new vessel.  In the case of a new vessel
    constructed under the provisions of this chapter, such allowance
    may, under such terms and conditions as the Secretary of
    Transportation may prescribe, be applied upon the cash payments
    required under this chapter.  In case the new vessel is not
    constructed under the provisions of this chapter, the allowance
    shall, upon acquisition of the obsolete vessel by the Secretary of
    Transportation, be paid, for the account of the owner, to the
    shipbuilder constructing such new vessel.  In the event that title
    to the obsolete vessel is acquired by the Secretary of
    Transportation at the time of delivery of the new vessel, the
    allowance shall be deposited in the owner's capital construction
    fund.  This subsection shall apply to obsolete vessels exchanged
    for new vessels hereafter contracted to be built, or eligible for
    such exchange but not exchanged in connection with a contract for
    new vessels executed prior to October 1, 1960.
    (c) Utility value of new vessel; gross tonnage
      The utility value of the new vessel for operation in the domestic
    or foreign commerce of the United States shall not be substantially
    less than that of the obsolete vessel.  The gross tonnage of the
    obsolete vessel may exceed the gross tonnage of the new vessel in a
    ratio not in excess of three to one, if the Secretary of
    Transportation finds that the new vessel, although of lesser
    tonnage, will provide utility value equivalent to or greater than
    that of the obsolete vessel.
    (d) Amount of allowance on obsolete vessel; determination of amount
      The allowance for an obsolete vessel shall be the fair and
    reasonable value of such vessel as determined by the Secretary of
    Transportation. In making such determination the Secretary of
    Transportation shall consider: (1) the scrap value of the obsolete
    vessel both in American and foreign markets, (2) the depreciated
    value based on a twenty or twenty-five year life, whichever is
    applicable to the obsolete vessel, and (3) the market value thereof
    for operation in the world trade or in the foreign or domestic
    trade of the United States. In the event the obsolete vessel is
    acquired by the Secretary of Transportation at the time the owner
    contracts for the construction of the new vessel, and the owner
    uses such vessel during the period of construction of the new
    vessel, the allowance shall be reduced by an amount representing
    the fair value of such use.  The rate for the use of the obsolete
    vessel shall be fixed by the Secretary of Transportation for the
    entire period of such use at the time of execution of the contract
    for the construction of the new vessel.
    (e) Recognition of gain for income tax purposes; basis for gain or
        loss
      No gain shall be recognized to the owner for the purpose of
    Federal income taxes in the case of a transfer of an obsolete
    vessel to the Secretary of Transportation under the provisions of
    this section.  The basis for gain or loss upon a sale or exchange
    and for depreciation under the applicable Federal income-tax laws
    of a new vessel acquired as contemplated in this section shall be
    the same as the basis of the obsolete vessel or vessels exchanged
    for credit upon the acquisition of such new vessel, increased in
    the amount of the cost of such vessel (other than the cost
    represented by such obsolete vessel or vessels) and decreased in
    the amount of loss recognized upon such transfer.
    (f) Report to Congress
      The Secretary of Transportation shall include in his annual
    report to Congress a detailed statement of all transactions
    consummated under the provisions of the preceding subsections
    during the period covered by such report.
    (g) Use of vessels 25 years old or more
      An obsolete vessel acquired by the Secretary of Transportation
    under this section which is or becomes twenty-five years old or
    more, and vessels presently in the Secretary's laid-up fleet which
    are or become twenty-five years old or more, shall in no case be
    used for commercial operation, except that any such obsolete
    vessel, or any such vessel in the laid-up fleet may be used during
    any period in which vessels may be requisitioned under section 1242
    of this Appendix, as amended, and except as otherwise provided in
    this chapter for the employment of the Secretary's vessels in
    steamship lines on trade routes exclusively serving the foreign
    trade of the United States.
    (h) Repealed. Pub. L. 101-225, title III, Sec. 307(7), Dec. 12,
        1989, 103 Stat. 1925
    (i) Exchange of vessels; valuation; scrapping of traded out vessels
      The Secretary of Transportation is authorized to acquire suitable
    documented vessels, as defined in section 2101 of title 46, with
    funds in the Vessel Operations Revolving Fund derived from the sale
    of obsolete vessels in the National Defense Reserve Fleet. For
    purposes of this subsection, the acquired and obsolete vessels
    shall be valued at their scrap value in domestic or foreign markets
    as of the date of the acquisition for or sale from the National
    Defense Reserve Fleet; except that, in a transaction subject to
    this section, the value assigned to those vessels will be
    determined on the same basis, with consideration given to the fair
    value of the cost of positioning the traded-out vessel to the place
    of scrapping.  All costs incident to the lay-up of the vessel
    acquired under this subsection may be paid from balances in the
    Fund. Notwithstanding the provisions of sections 808 and 835 of
    this Appendix, vessels sold from the National Defense Reserve Fleet
    under this subsection may be scrapped in approved foreign markets.
    (j) Placement in national defense reserve fleet of acquired vessels
      Any vessel heretofore or hereafter acquired under this section,
    or otherwise acquired by the Maritime Administration of the
    Department of Transportation under any other authority shall be
    placed in the national defense reserve fleet established under
    authority of section 11 of the Merchant Ship Sales Act of 1946 (50
    App. U.S.C. 1744) and shall not be traded out or sold from such
    reserve fleet, except as provided for in subsections (g) and (i) of
    this section.  This limitation shall not affect the rights of the
    Secretary of Transportation to dispose of a vessel as provided in
    other sections of this subchapter or in subchapters VII or XI of
    this chapter.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 510, as added Aug. 4, 1939,
    ch. 417, Sec. 7, 53 Stat. 1183; amended July 17, 1952, ch. 939,
    Sec. 7, 8, 66 Stat. 762; Aug. 10, 1954, ch. 664, 68 Stat. 680; Pub.
    L. 85-332, Feb. 20, 1958, 72 Stat. 17; Pub. L. 86-518, Sec. 1, June
    12, 1960, 74 Stat. 216; Pub. L. 86-575, July 5, 1960, 74 Stat. 312;
    Pub. L. 87-401, Oct. 5, 1961, 75 Stat. 833; Pub. L. 87-755, Oct. 5,
    1962, 76 Stat. 751; Pub. L. 89-254, Sec. 1, 2, Oct. 10, 1965, 79
    Stat. 980; Pub. L. 91-469, Sec. 12, 13, 35(a), Oct. 21, 1970, 84
    Stat. 1022, 1035; Pub. L. 93-605, Sec. 1, Jan. 2, 1975, 88 Stat.
    1965; Pub. L. 95-177, Nov. 15, 1977, 91 Stat. 1368; Pub. L. 97-31,
    Sec. 12(91), Aug. 6, 1981, 95 Stat. 161; Pub. L. 101-225, title
    III, Sec. 307(7), Dec. 12, 1989, 103 Stat. 1925; Pub. L. 101-595,
    title VII, Sec. 704, Nov. 16, 1990, 104 Stat. 2994.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Federal income-tax laws, referred to in subsec. (e), are
    classified generally to Title 26, Internal Revenue Code.
 
-MISC2-
                                 AMENDMENTS
      1990 - Subsec. (i). Pub. L. 101-595 amended subsec. (i)
    generally.  Prior to amendment, subsec. (i) read as follows: ''The
    Secretary of Transportation is authorized to acquire mariner class
    vessels constructed under subchapter VII of this chapter and Public
    Law 911, Eighty-first Congress, and other suitable vessels,
    constructed in the United States, which have never been under
    foreign documentation, in exchange for obsolete vessels in the
    National Defense Reserve Fleet. For purposes of this subsection,
    the trade-in and trade-out vessels shall be valued at the higher of
    their scrap value in domestic or foreign markets as of the date of
    the exchange: Provided, That in any exchange transactions, the
    value assigned to the traded-in and traded-out vessels will be
    determined on the same basis.  The value of the traded-out vessels
    shall be as nearly as possible equal to the value of the traded-in
    vessel plus the fair value of the cost of towing the traded-out
    vessel to the place of scrapping.  To the extent the value of the
    traded-out vessel exceeds the value of the traded-in vessel plus
    the fair value of the cost of towing, the owner of the traded-in
    vessel shall pay the excess to the Secretary of Transportation in
    cash at the time of exchange.  This excess shall be deposited into
    the Vessel Operations Revolving Fund and all costs incident to the
    lay-up of the vessels acquired under this chapter may be paid from
    balances in the Fund. No payments shall be made by the Secretary of
    Transportation to the owner of any traded-in vessel in connection
    with any exchange under this subsection.  Notwithstanding the
    provisions of sections 808 and 835 of this Appendix, vessels traded
    out under this subsection may be scrapped in approved foreign
    markets.  The provision of this subsection (i) as it read prior to
    the 1975 amendment shall govern all transactions made thereunder
    prior to that amendment.''
      1989 - Subsec. (h). Pub. L. 101-225 struck out subsec. (h) which
    related to acquisition of tankers for national defense reserve.
      1981 - Subsecs. (a)(1), (b). Pub. L. 97-31, Sec. 12(91)(A),
    substituted ''Secretary of Transportation'' for ''Secretary of
    Commerce'' wherever appearing.
      Subsecs. (c) to (e). Pub. L. 97-31, Sec. 12(91)(B), substituted
    ''Secretary of Transportation'' for ''Commission'' wherever
    appearing.  For prior transfers of functions of the Commission,
    meaning the United States Maritime Commission, see Transfer of
    Functions note below.
      Subsec. (f). Pub. L. 97-31, Sec. 12(91)(B), (C), substituted
    ''Secretary of Transportation'' for ''Commission'' and ''his'' for
    ''its''. For prior transfers of functions of the Commission,
    meaning the United States Maritime Commission, see Transfer of
    Functions note below.
      Subsec. (g). Pub. L. 97-31, Sec. 12(91)(B), (D), substituted
    ''Secretary of Transportation'' for ''Commission'' and
    ''Secretary's'' for ''Commission's'' in two places.  For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      Subsecs. (h), (i). Pub. L. 97-31, Sec. 12(91)(A), substituted
    ''Secretary of Transportation'' for ''Secretary of Commerce''
    wherever appearing.
      Subsec. (j). Pub. L. 97-31, Sec. 12(91)(A), (E), substituted
    ''Maritime Administration of the Department of Transportation'' for
    ''Secretary of Commerce'' and ''Secretary of Transportation'' for
    ''Secretary of Commerce''.
      1977 - Subsec. (i). Pub. L. 95-177 struck out '', within two
    years after the enactment of this subsection,'' after ''is
    authorized'' and ''that are scheduled for scrapping'' after
    ''National Defense Reserve Fleet'', inserted ''and other suitable
    vessels, constructed in the United States, which have never been
    under foreign documentation,'' after ''Eighty-first Congress,'',
    and substituted ''the trade-in and trade-out vessels'' for ''the
    traded-in and traded-out vessels'' and ''the 1975 Amendment'' for
    ''this amendment''.
      1975 - Subsec. (i). Pub. L. 93-605 added subsec. (i). A prior
    subsec. (i) providing authority for the Secretary of Commerce to
    acquire vessels of one thousand five hundred gross tons or over
    which were constructed in the United States in exchange for more
    modern or efficient ocean-going vessels of one thousand five
    hundred gross tons or over owned by the United States under
    specified conditions expired on July 5, 1972.
      1970 - Subsec. (a)(1). Pub. L. 91-469, Sec. 12(a), in redefining
    ''obsolete vessel'', substituted in subd. (B) ''in the judgment of
    the Secretary of Commerce, should, by reason of age, obsolescence,
    or otherwise, be replaced in the public interest'' for ''is not
    less than seventeen years old and, in the judgment of the
    Commission, is obsolete or inadequate for successful operation in
    the domestic or foreign trade of the United States'', substituted
    in subd. (C) ''has been owned'' for ''is owned'' and deleted
    therefrom ''and has been owned by such citizen or citizens''
    preceding ''for at least three years'', and deleted concluding
    proviso defining ''obsolete vessel'' as meaning a vessel, until
    June 30, 1964, which is not less than 1,350 gross tons, is not less
    than 12 years old, and is citizen owned for three year period prior
    to acquisition hereunder.
      Subsec. (b). Pub. L. 91-469, Sec. 12(b), 35(a), substituted
    ''capital construction fund'' for ''capital reserve fund'' and
    ''Secretary of Commerce'' for ''Commission'' in seven places,
    respectively.
      Subsec. (i). Pub. L. 91-469, Sec. 13, in amending first sentence,
    substituted ''1972'' and ''which were constructed in the United
    States'' for ''1970'' and ''which were constructed or contracted
    for by the United States shipyards before September 3, 1945'' and
    struck out ''war-built vessels (which are defined for purposes of
    this subsection as'' and ''which were constructed or contracted for
    by the United States shipyards during the period beginning
    September 3, 1939, and ending September 2, 1945)'' before and after
    ''oceangoing vessels of one thousand five hundred gross tons or
    over''.
      1965 - Subsec. (i). Pub. L. 89-254, Sec. 1(a), substituted
    ''before July 5, 1970, vessels of one thousand five hundred gross
    tons or over which were constructed or contracted for by the United
    States shipyards before September 3, 1945'' for ''within five years
    from the date of enactment of this Act war-built vessels (which are
    defined for purposes of this subsection as oceangoing vessels of
    one thousand five hundred gross tons or over which were constructed
    or contracted for by the United States shipyards during the period
    beginning September 3, 1939, and ending September 2, 1945)'', and
    inserted ''(which are defined for purposes of this subsection as
    oceangoing vessels of one thousand five hundred gross tons or over
    which were constructed or contracted for by the United States
    shipyards during the period beginning September 3, 1939, and ending
    September 2, 1945)''.
      Subsec. (i)(1). Pub. L. 89-254, Sec. 1(b), amended par. (1) to
    apply the 3 year prohibition against any vessel being operated
    under an operating-differential subsidy to the applicant or any
    affiliate of the applicant rather than to the vessel itself.
      Subsec. (i)(2). Pub. L. 89-254, Sec. 1(c), required the value of
    a traded out vessel to be calculated in the same manner as its
    value was determined when it was traded in, except that vessels
    traded in prior to Oct. 1, 1960, shall be valued on the basis
    yielding the highest fair return to the government commensurate
    with the purpose of this subsection, and required in each exchange
    of vessels under this subsection, the value of the traded-in
    vessel, unless based on scrap value, and the value of the
    traded-out vessel to be calculated in the same manner.
      Subsec. (i)(9). Pub. L. 89-254, Sec. 1(d), substituted provisions
    permitting tanker vessels to be traded out under the provisions of
    this subsection only for major conversions into dry cargo carriers
    or liquid bulk carriers, including natural gas carriers but
    excluding bulk petroleum carriers, except where traded out for use
    exclusively in trade and commerce on the Great Lakes, including the
    St. Lawrence River and Gulf, for provisions which prohibited
    tanker-vessels to be traded out under the provisions of this
    subsection.
      Subsec. (j). Pub. L. 89-254, Sec. 2, added subsec. (j).
      1962 - Subsec. (a)(1). Pub. L. 87-755 substituted ''June 30,
    1964'' for ''June 30, 1962''.
      1961 - Subsec. (b). Pub. L. 87-401, Sec. 1(1), provided that if
    the owner requests, the vessel shall be acquired by the Federal
    Maritime Board or Secretary of Commerce either when the owner
    contracts for construction or purchase of a new ship or within 5
    days of actual delivery of the new vessel to the owner, that the
    amount of allowance be determined at the time of acquisition of the
    vessel by the Board or Secretary, and if at such time, the owner
    contracts for construction or purchase of a new vessel, the
    allowance shall be applied upon the price of the new vessel, that
    if the Board or Secretary acquired title to the vessel at time of
    delivery of the new vessel, the allowance shall be deposited in the
    owner's capital reserve fund, and that this subsection shall apply
    to exchanges for vessels hereafter contracted to be built, or
    eligible for exchange but not so exchanged in connection with
    contracts for new vessels executed prior to Oct. 1, 1960.
      Subsec. (d). Pub. L. 87-401, Sec. 1(2), provided for a
    depreciation value based upon a twenty-year life, if applicable,
    and substituted ''In the event the obsolete vessel is acquired by
    the Board or Secretary at the time the owner contracts for the
    construction of a new vessel, and the owner'' for ''If the owner of
    the obsolete vessel''.
      1960 - Subsec. (d). Pub. L. 86-518 substituted ''twenty-five-year
    life'' for ''twenty-year life''.
      Subsec. (g). Pub. L. 86-518 substituted ''twenty-five years'' for
    ''twenty years'' in two places.
      Subsec. (i). Pub. L. 86-575 added subsec. (i).
      1958 - Subsec. (a)(1). Pub. L. 85-332 substituted ''June 30,
    1962'' for ''June 30, 1958''.
      1954 - Subsec. (h). Act Aug. 10, 1954, added subsec. (h).
      1952 - Subsec. (a)(1). Act July 17, 1952, Sec. 7, provided that
    until June 30, 1958, the minimum age in determining the eligibility
    of ''obsolete vessels'' for turn in for credit allowance on a new
    vessel is reduced from 17 to 12 years.
      Subsec. (d). Act July 17, 1952, Sec. 8, provided that the rate
    for the use of the obsolete vessel should be fixed at the time that
    the contract for the new vessel is entered into.
                      EFFECTIVE DATE OF 1960 AMENDMENT
      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.
 
-TRANS-
                           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.
 
-MISC5-
       SECRETARY OF COMMERCE AUTHORIZED TO PURCHASE STEAMSHIP UNITED
              STATES; REQUISITION OR PURCHASE BY UNITED STATES
      Pub. L. 92-296, Sec. 2, May 16, 1972, 86 Stat. 140, as amended by
    Pub. L. 94-536, Oct. 17, 1976, 90 Stat. 2497; Pub. L. 96-111, Sec.
    2, Nov. 15, 1979, 93 Stat. 846, provided that: ''The Secretary of
    Commerce is authorized and directed to purchase the steamship
    United States, as is, where is, at the depreciated cost of the
    vessel to the owner, as determined by the Secretary of Commerce,
    less the unpaid principal and interest on the mortgage on the
    vessel, for layup in the National Defense Reserve Fleet and
    operation for the account of any agency or department of the United
    States during any period in which vessels may be requisitioned
    under section 902 of the Merchant Marine Act, 1936 (46 App. U.S.C.
    1242), and/or for sale or charter to a qualified operator for
    operation under the American flag in the coastwise and/or foreign
    commerce of the United States and/or between foreign ports
    notwithstanding the provision of section 506 of the Merchant Marine
    Act, 1936 (46 App. U.S.C. 1156): Provided, That for hire carriage
    in coastwise commerce of the United States is limited to
    passengers, their accompanying baggage, and one thousand
    measurement tons of cargo, of forty cubic feet each, per annum in
    any single coastwise trade: Provided further, That for hire
    carriage of cargo in excess of the aforesaid one thousand tons
    shall be unlawful, or for use as a floating hotel in or on the
    navigable waters of the United States. Whenever the conditions set
    forth in section 902, the Merchant Marine Act of 1936 (46 App.
    U.S.C. 1242), exist, the vessel may be requisitioned or purchased
    by the United States 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, as amended (46 U.S.C. 1242) (46 App. U.S.C.
    1242). The depreciated cost of the vessel to the owner shall be
    computed on the schedule adopted by the Internal Revenue Service
    for income tax purposes.  Such determination shall be final.  The
    Secretary of Commerce shall require the owner of the vessel to
    agree that it will pay all existing private obligations related to
    the vessel, and that it will commit an amount equal to the net
    proceeds received from such sale in excess of existing obligations
    and expenses incident to the sale, within a reasonable period not
    to exceed twelve months of receipt, 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 (this chapter).''
      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.
                   SUSPENSION OF SUBSECTION (G) REPEALED
      Act May 14, 1940, ch. 201, Sec. 1, 54 Stat. 216, as extended by
    act June 16, 1942, ch. 416, 56 Stat. 370, which suspended subsec.
    (g) of this section until six months after the end of World War II
    should have been proclaimed or such earlier time as the Congress by
    concurrent resolution or the President might designate, was
    repealed by act July 25, 1947, ch. 327, Sec. 1, 61 Stat. 449.
 
-CROSS-
                              CROSS REFERENCES
      Basis for depreciation, generally, see section 167 of Title 26,
    Internal Revenue Code.
      Basis for determining gain or loss, generally, see section 1001
    et seq. of Title 26.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 10 section 2218; title 16
    section 5405; title 26 section 1061.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1161                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1161. Reserve funds for construction or acquisition of
        vessels; taxation
 
-STATUTE-
    (a) ''New vessel'' defined
      When used in this section the term ''new vessel'' means any
    vessel (1) documented or agreed with the Secretary of
    Transportation to be documented under the laws of the United
    States; (2) construction in the United States after December 31,
    1939, or the construction of which has been financed under
    subchapters V or VII of this chapter, or the construction of which
    has been aided by a mortgage insured under subchapter XI of this
    chapter; and (3) either (A) of such type, size, and speed as the
    Secretary of Transportation shall determine to be suitable for use
    on the high seas or Great Lakes in carrying out the purposes of
    this chapter, but not of less than two thousand gross tons or of
    less speed than twelve knots, unless the Secretary of
    Transportation shall determine and certify in each case that a
    vessel of a specified lesser tonnage or speed is desirable for use
    by the United States in case of war or national emergency, or (B)
    constructed to replace a vessel or vessels requisitioned or
    purchased by the United States.
    (b) Establishment of construction reserve funds
      For the purposes of promoting the construction, reconstruction,
    reconditioning, or acquisition of vessels, or for other purposes
    authorized in this section, necessary to carrying out the policy
    set forth in section 1101 of this Appendix, any citizen of the
    United States who is operating a vessel or vessels in the foreign
    or domestic commerce of the United States or in the fisheries or
    owns in whole or in part a vessel or vessels being so operated, or
    who, at the time of purchase or requisition of the vessel by the
    Government, was operating a vessel or vessels so engaged or owned
    in whole or in part a vessel or vessels being so operated or had
    acquired or was having constructed a vessel or vessels for the
    purpose of operation in such commerce or in the fisheries, may
    establish a construction reserve fund, for the construction,
    reconstruction, reconditioning, or acquisition of new vessels, or
    for other purposes authorized in this section, to be composed of
    deposits of proceeds from sales of vessels, indemnities on account
    of losses of vessels, earnings from the operation of vessels
    documented under the laws of the United States and from services
    incident thereto, and receipts, in the form of interest or
    otherwise, with respect to amounts previously deposited.  Such
    construction reserve fund shall be established, maintained,
    expended, and used in accordance with the provisions of this
    section and rules or regulations to be prescribed jointly by the
    Secretary of Transportation and the Secretary of the Treasury.
    (c) Recognition of gain for taxation where proceeds of sale or
        indemnity for loss deposited in fund
      In the case of the sale or actual or constructive total loss of a
    vessel, if the taxpayer deposits an amount equal to the net
    proceeds of the sale or to the net indemnity with respect to the
    loss in a construction reserve fund established under subsection
    (b) of this section, then -
        (1) if the taxpayer so elects in his income-tax return for the
      taxable year in which the gain was realized, or
        (2) in case a vessel is purchased or requisitioned by the
      United States, or is lost, in any taxable year beginning after
      December 31, 1939, and the taxpayer receives payment for the
      vessel so purchased or requisitioned, or receives from the United
      States indemnity on account of such loss, subsequent to the end
      of such taxable year, if the taxpayer so elects prior to the
      expiration of sixty days after the receipt of the payment or
      indemnity, and in accordance with a form of election to be
      prescribed by the Commissioner of Internal Revenue with the
      approval of the Secretary of the Treasury,
    no gain shall be recognized to the taxpayer in respect of such sale
    or indemnification in the computation of net income for the
    purposes of Federal income or excess-profits taxes.  If an election
    is made under subdivision (2) of this subsection and if computation
    or recomputation in accordance with this subsection is otherwise
    allowable but is prevented, on the date of making such election or
    within six months thereafter, by any statute of limitation, such
    computation or recomputation nevertheless shall be made
    notwithstanding such statute if a claim therefor is filed within
    six months after the date of making such election.
      For the purposes of this subsection no amount shall be considered
    as deposited in a construction reserve fund unless it is deposited
    within sixty days after it is received by the taxpayer.
      As used in this subsection the term ''net proceeds'' and the term
    ''net indemnity'' mean the sum of (1) the adjusted basis of the
    vessel and (2) the amount of gain which would be recognized to the
    taxpayer without regard to this subsection.
    (d) Basis for determining gain or loss and for depreciation of new
        vessels
      The basis for determining gain or loss and for depreciation, for
    the purposes of Federal income or excess profits taxes, of any new
    vessel constructed, reconstructed, reconditioned, or acquired by
    the taxpayer, or with respect to which purchase-money indebtedness
    is liquidated as provided in subsection (g) of this section, in
    whole or in part out of the construction reserve fund shall be
    reduced by that portion of the deposits in the fund expended in the
    construction, reconstruction, reconditioning, acquisition, or
    liquidation of purchase-money indebtedness of the new vessel which
    represents gain not recognized for tax purposes under subsection
    (c) of this section.
    (e) Order, proportions, etc., of deposits and withdrawals
      For the purposes of this section, (1) if the net proceeds of a
    sale or the net indemnity in respect of a loss are deposited in
    more than one deposit, the amount consisting of the gain shall be
    considered as first deposited; (2) amounts expended, obligated, or
    otherwise withdrawn shall be applied against the amounts deposited
    in the fund in the order of deposit; and (3) if any deposit
    consists in part of gain not recognized under subsection (c) of
    this section, any expenditure, obligation, or withdrawal applied
    against such deposit shall be considered to consist of gain in the
    proportion that the part of the deposit consisting of gain bears to
    the total amount of the deposit.
    (f) Amounts in fund as accumulation of earnings or profits
      With respect to any taxable year, amounts on deposit on the last
    day of such year in a construction reserve fund in accordance with
    this section and with respect to which all the requirements of
    subsection (g) of this section have been satisfied, to the extent
    that such requirements are applicable as of the last day of said
    taxable year, shall not constitute an accumulation of earnings or
    profits within the meaning of section 102 of the Internal Revenue
    Code.
    (g) Benefits of section conditioned upon manner and time of
        expenditure of deposits
      The provisions of subsections (c) and (f) of this section shall
    apply to any deposit in the construction reserve fund only to the
    extent that such deposit is expended or obligated for expenditure,
    in accordance with rules and regulations to be prescribed jointly
    by the Secretary of Transportation and the Secretary of the
    Treasury -
        (1) under a contract for the construction or acquisition of a
      new vessel or vessels (or in the discretion of the Secretary of
      Transportation, for a part interest therein), or, with the
      approval of the Secretary of Transportation, for the
      reconstruction or reconditioning of a new vessel or vessels,
      entered into within (i) two years from the date of deposit or the
      date of any extension thereof which may be granted by the
      Secretary of Transportation pursuant to the provisions of
      subsection (h) of this section, in the case of deposits made
      prior to the date on which these amendatory provisions become
      effective, or (ii) three years from the date of such deposit in
      the case of a deposit made after such effective date, only if
      under such rules and regulations -
          (A) within such period not less than 12 1/2 per centum of the
        construction or contract price of the vessel or vessels is paid
        or irrevocably committed on account thereof and the plans and
        specifications therefor are approved by the Secretary of
        Transportation to the extent by him deemed necessary; and
          (B) in case of a vessel or vessels not constructed under the
        provisions of this subchapter or not purchased from the
        Secretary of Transportation, (i) said construction is
        completed, within six months from the date of the construction
        contract, to the extent of not less than 5 per centum thereof
        (or in case the contract covers more than one vessel, the
        construction of the first vessel so contracted for is so
        completed to the extent of not less than 5 per centum) as
        estimated by the Secretary of Transportation and certified by
        him to the Secretary of the Treasury, and (ii) all construction
        under such contract is completed with reasonable dispatch
        thereafter;
        (2) for the liquidation of existing or subsequently incurred
      purchase-money indebtedness to persons other than a parent
      company of, or a company affiliated or associated with, the
      mortgagor on a new vessel or vessels within (i) two years from
      the date of deposit or the date of any extension thereof which
      may be granted by the Secretary of Transportation pursuant to the
      provisions of subsection (h) of this section, in the case of
      deposits made prior to the date on which these amendatory
      provisions become effective, or (ii) three years from the date of
      such deposit in the case of a deposit made after such effective
      date.
    (h) Authorizations of extensions of time
      The Secretary of Transportation is authorized under rules and
    regulations to be prescribed jointly by the Secretary of the
    Treasury and the Secretary of Transportation to grant extensions of
    the period within which the deposits shall be expended or obligated
    or within which construction shall have progressed to the extent of
    5 per centum of completion as provided herein, but such extension
    shall not be for an aggregate additional period in excess of two
    years with respect to the expenditure or obligation of such
    deposits or more than one year with respect to the progress of such
    construction: Provided, That until January 1, 1965, in addition to
    the extensions hereinbefore permitted, further extensions may be
    granted ending not later than December 31, 1965.
    (i) Taxation of deposits upon failure of conditions
      Any such deposited gain or portion thereof which is not so
    expended or obligated within the period provided, or which is
    otherwise withdrawn before the expiration of such period, or with
    respect to which the construction has not progressed to the extent
    of 5 per centum of completion within the period provided, or with
    respect to which the Secretary of Transportation finds and
    certifies to the Secretary of the Treasury that, for causes within
    the control of the taxpayer, the entire construction is not
    completed with reasonable dispatch, if otherwise taxable income
    under the law applicable to the taxable year in which such gain was
    realized, shall be included in the gross income for such taxable
    year, except for the purpose of the declared value excess-profits
    tax and the capital stock tax.  If any such deposited gain or
    portion thereof with respect to a deposit made in any taxable year
    ending on or before June 30, 1945 is so included in gross income
    for such taxable year, there shall (in addition to any other
    deficiency) be assessed, collected, and paid in the same manner as
    if it were a deficiency, an amount equal to 1.1 per centum of the
    amount of gain so included, such amount being in lieu of any
    adjustment with respect to the declared value excess-profits tax
    for such taxable year.
    (j) Assessment and collection of deficiency tax
      Notwithstanding any other provision of law, any deficiency in tax
    for any taxable year resulting from the inclusion of any amount in
    gross income as provided by subsection (i) of this section, and the
    amount to be treated as a deficiency under such subsection in lieu
    of any adjustment with respect to the declared value excess-profits
    tax, may be assessed or a proceeding in court for the collection
    thereof may be begun without assessment, at any time: Provided,
    however, That interest on any such deficiency or amount to be
    treated as a deficiency shall not begin until the date the
    deposited gain or portion thereof in question is required under
    subsection (i) of this section to be included in gross income.
    (k) Taxable years governed by section
      This section shall be applicable to a taxpayer only in respect of
    sales or indemnifications for losses occurring within a taxable
    year beginning after December 31, 1939, and only in respect of
    earnings derived during a taxable year beginning after December 31,
    1939.
    (l) Vessels deemed constructed or acquired by taxpayers owning
        stock in corporations constructing or acquiring vessels
      For the purposes of this section a vessel shall be considered as
    constructed or acquired by the taxpayer if constructed or acquired
    by a corporation at a time when the taxpayer owns at least 95 per
    centum of the total number of shares of each class of stock of the
    corporation.
    (m) Definitions
      The terms used in this section shall have the same meaning as in
    chapter 1 of the Internal Revenue Code.
    (n) ''Contract for the construction'' and ''construction contract''
        defined
      The terms ''contract for the construction'' and ''construction
    contract'', as used in this section, shall include, in the case of
    a taxpayer who constructs a new vessel in a shipyard owned by such
    taxpayer, an agreement between such taxpayer and the Secretary of
    Transportation with respect to such construction and containing
    provisions deemed necessary or advisable by the Secretary of
    Transportation to carry out the purposes and policy of this
    section.
    (o) ''Reconstruction and reconditioning'' defined
      The terms ''reconstruction and reconditioning'', as used in this
    section, shall include the reconstruction, reconditioning, or
    modernization of a vessel for exclusive use on the Great Lakes,
    including the Saint Lawrence River and Gulf, if the Secretary of
    Transportation determines that the objectives of this chapter will
    be promoted by such reconstruction, reconditioning, or
    modernization, and, notwithstanding any other provisions of law,
    such vessel shall be deemed to be a ''new vessel'' within the
    meaning of this section for such reconstruction, reconditioning, or
    modernization.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 511, as added Oct. 10, 1940,
    ch. 849, 54 Stat. 1106; amended June 17, 1943, ch. 130, 57 Stat.
    157; Dec. 23, 1944, ch. 714, 58 Stat. 920; July 17, 1952, ch. 939,
    Sec. 9-14, 66 Stat. 762-764; Pub. L. 86-237, Sec. 1, Sept. 8, 1959,
    73 Stat. 471; Pub. L. 87-303, Sec. 3, Sept. 26, 1961, 75 Stat. 661;
    Pub. L. 87-782, Sec. 1, Oct. 10, 1962, 76 Stat. 796; Pub. L.
    88-227, Sec. 1, Dec. 23, 1963, 77 Stat. 470; Pub. L. 88-595, Sec.
    1, Sept. 12, 1964, 78 Stat. 943; Pub. L. 97-31, Sec. 12(92), Aug.
    6, 1981, 95 Stat. 161.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 102 of the Internal Revenue Code, referred to in subsec.
    (f), means section 102 of the Internal Revenue Code of 1939, which
    was classified to section 102 of former Title 26, Internal Revenue
    Code. Section 102 was repealed by section 7851(a)(1) of Title 26,
    Internal Revenue Code. For table of comparisons of the 1939 Code to
    the 1986 Code, see Table I preceding section 1 of Title 26. See
    also section 7851(e) of Title 26 for provision that references in
    the 1986 Code to a provision of the 1939 Code, not then applicable,
    shall be deemed a reference to the corresponding provision of the
    1986 Code, which is then applicable.
      Chapter 1 of the Internal Revenue Code, referred to in subsec.
    (m), means chapter 1 of the Internal Revenue Code of 1939, which
    was classified to chapter 1 of former Title 26, Internal Revenue
    Code. Chapter 1 was comprised of sections 1 to 482 of former Title
    26. Sections 1 to 142 and 145 to 482 were repealed by section
    7851(a)(1) of Title 26, Internal Revenue Code. Sections 143 and 144
    were repealed by section 7851(a)(2) of Title 26. For table of
    comparisons of the 1939 Code to the 1986 Code, see Table I
    preceding section 1 of Title 26. See also section 7851(e) of Title
    26 for provision that references in the 1986 Code to a provision of
    the 1939 Code, not then applicable, shall be deemed a reference to
    the corresponding provision of the 1986 Code, which is then
    applicable.
 
-MISC2-
                                 AMENDMENTS
      1981 - Subsecs. (a), (b). Pub. L. 97-31, Sec. 12(92)(A),
    substituted ''Secretary of Transportation'' for ''Commission''
    wherever appearing.  For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      Subsec. (g). Pub. L. 97-31, Sec. 12(92), substituted ''Secretary
    of Transportation'' for ''Commission'' wherever appearing and in
    subpars. (A) and (B), substituted ''him'' for ''it''. For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      Subsecs. (h), (i), (n), (o). Pub. L. 97-31, Sec. 12(92)(A),
    substituted ''Secretary of Transportation'' for ''Commission''
    wherever appearing.  For prior transfers of functions of the
    Commission, meaning the United States Maritime Commission, see
    Transfer of Functions note below.
      1964 - Subsec. (h). Pub. L. 88-595 substituted ''January 1,
    1965'' for ''January 1, 1964'' and ''December 31, 1965'' for
    ''December 31, 1964''.
      1963 - Subsec. (h). Pub. L. 88-227 substituted ''January 1,
    1964'' for ''January 1, 1963'' and ''December 31, 1964'' for
    ''December 31, 1963''.
      1962 - Subsec. (h). Pub. L. 87-782 substituted ''January 1,
    1963'' for ''January 1, 1962'' and ''December 31, 1963'' for
    ''December 31, 1962''.
      1961 - Subsec. (h). Pub. L. 87-303 substituted ''January 1,
    1962'' for ''January 1, 1961'' and ''December 31, 1962'' for
    ''December 31, 1961''.
      1959 - Subsec. (h). Pub. L. 86-237 substituted ''January 1,
    1961'' and ''December 31, 1961'' for ''March 31, 1953'' and
    ''September 30, 1953,'' respectively.
      1952 - Subsec. (b). Act July 17, 1952, Sec. 9, extended its
    provisions to the reconstruction and reconditioning of vessels.
      Subsec. (c). Act July 17, 1952, Sec. 10, struck out obsolete
    language.
      Subsec. (d). Act July 17, 1952, Sec. 11, provided for the
    adjustment in the tax basis of a vessel if the reserve funds are
    used for reconstruction, reconditioning, or liquidation of a
    purchase-money indebtedness on vessels.
      Subsec. (g). Act July 17, 1952, Sec. 12, provided that the
    reserve funds may be used for reconstruction, reconditioning, and
    liquidation of purchase money indebtedness, and extended the time
    of required commitment of deposits in order to avoid the imposition
    of taxes at the established rate.
      Subsec. (h). Act July 17, 1952, Sec. 13(a), extended extension
    period.
      Subsec. (i). Act July 17, 1952, Sec. 13(b), limited the
    additional 1.1% tax imposed on deposits in lieu of the
    capital-stock tax or declared excess profit tax to deposits made in
    taxable years ending on or before June 30, 1945.
      Subsec. (o). Act July 17, 1952, Sec. 14, added subsec. (o).
      1944 - Subsec. (c). Act Dec. 23, 1944, amended first sentence
    generally.
      Subsec. (n). Act Dec. 23, 1944, added subsec. (n).
      1943 - Subsec. (b). Act June 17, 1943, extended provisions of
    first sentence to ownership in whole or in part and to persons who
    had acquired or were having constructed a vessel or vessels.
      Subsec. (c). Act June 17, 1943, changed the dates of deposit in
    second sentence.
      Subsec. (g). Act June 17, 1943, inserted ''(or in the discretion
    of the Commission, for a part interest therein)''.
      Subsec. (h). Act June 17, 1943, substituted ''Commission'' for
    ''Commissioner of Internal Revenue'' at beginning of subsec. and
    inserted proviso.
                      EFFECTIVE DATE OF 1964 AMENDMENT
      Section 2 of Pub. L. 88-595 provided that: ''The amendment made
    by the first section of this Act (amending this section) shall take
    effect December 31, 1964, or on the date of enactment of this Act
    (Sept. 12, 1964), whichever date first occurs.''
                      EFFECTIVE DATE OF 1963 AMENDMENT
      Section 2 of Pub. L. 88-227 provided that: ''The amendment made
    by the first section of this Act (amending this section) shall take
    effect December 31, 1963, or on the date of enactment of this Act
    (Dec. 23, 1963), whichever date first occurs.''
                      EFFECTIVE DATE OF 1962 AMENDMENT
      Section 2 of Pub. L. 87-782 provided that: ''The amendment made
    by the first section of this Act (amending this section) shall take
    effect December 31, 1962, or on the date of enactment of this Act
    (Oct. 10, 1962), whichever date first occurs.''
                      EFFECTIVE DATE OF 1959 AMENDMENT
      Section 2 of Pub. L. 86-237 provided that: ''The amendment made
    by the first section of this Act (amending this section) shall take
    effect June 30, 1959, or on the date of enactment of this Act
    (Sept. 8, 1959), whichever date first occurs.''
 
-TRANS-
                           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.
 
-MISC5-
                             TERMINATION OF WAR
      Section 5 of act Aug. 8, 1947, ch. 515, 61 Stat. 917, as amended
    Apr. 20, 1949, ch. 82, 63 Stat. 56; Oct. 1, 1951, ch. 443, 65 Stat.
    366; July 16, 1952, ch. 913, 66 Stat. 737, provided: ''For the
    purposes of the proviso of subsection (h) of section 511 of the
    Merchant Marine Act, 1936, as amended, added to such subsection by
    the Act of June 17, 1943 (57 Stat. 158) (subsec. (h) of this
    section), the present war shall be considered as having terminated
    on March 31, 1953.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 26 sections 543, 1023, 1061.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1162                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER V - CONSTRUCTION-DIFFERENTIAL SUBSIDY
 
-HEAD-
    Sec. 1162. Limitation on restrictions
 
-STATUTE-
      Notwithstanding any other provision of law or contract, all
    restrictions and requirements under sections 1153, 1156, and 1212
    of this Appendix applicable to a liner vessel constructed,
    reconstructed, or reconditioned with the aid of
    construction-differential subsidy shall terminate upon the
    expiration of the 25-year period beginning on the date of the
    original delivery of the vessel from the shipyard.
 
-SOURCE-
    (June 29, 1936, ch. 858, title V, Sec. 511, as added Pub. L.
    104-239, Sec. 7, Oct. 8, 1996, 110 Stat. 3133.)
 
-CITE-
    46 USC APPENDIX - SHIPPING SUBCHAPTER VI - VESSEL
                  OPERATING ASSISTANCE PROGRAMS                  01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    .
 
-HEAD-
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in sections 1131, 1152, 1191,
    1204, 1211, 1222, 1226, 1227, 1228, 1244 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Part A -
                  Operating-Differential Subsidy Program         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
    .
 
-HEAD-
    Part A - Operating-Differential Subsidy Program
 
-SECREF-
                     PART REFERRED TO IN OTHER SECTIONS
      This part is referred to in sections 808, 1187a, 1222, 1223 of
    this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1171                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1171. Subsidy authorized for operation of vessels in foreign
        trade or in off-season cruises
 
-STATUTE-
    (a) Application for subsidy; conditions precedent to granting
      The Secretary of Transportation is authorized and directed to
    consider the application of any citizen of the United States for
    financial aid in the operation of a vessel or vessels, which are to
    be used in an essential service in the foreign commerce of the
    United States or in such service and in cruises authorized under
    section 1183 of this Appendix. In this subchapter VI the term
    ''essential service'' means the operation of a vessel on a service,
    route, or line described in section 1121(a) of this Appendix or in
    bulk cargo carrying service described in section 1121(b) of this
    Appendix. No such application shall be approved by the Secretary of
    Transportation unless he determines that (1) the operation of such
    vessel or vessels in an essential service is required to meet
    foreign-flag competition and to promote the foreign commerce of the
    United States except to the extent such vessels are to be operated
    on cruises authorized under section 1183 of this Appendix, and that
    such vessel or vessels were built in the United States, or have
    been documented under the laws of the United States not later than
    February 1, 1928, or actually ordered and under construction for
    the account of citizens of the United States prior to such date;
    (2) the applicant owns, or leases or can and will build or
    purchase, or lease, a vessel or vessels of the size, type, speed,
    and number, and with the proper equipment required to enable him to
    operate in an essential service, in such manner as may be necessary
    to meet competitive conditions, and to promote foreign commerce;
    (3) the applicant possesses the ability, experience, financial
    resources, and other qualifications necessary to enable him to
    conduct the proposed operations of the vessel or vessels as to meet
    competitive conditions and promote foreign commerce; (4) the
    granting of the aid applied for is necessary to place the proposed
    operations of the vessel or vessels on a parity with those of
    foreign competitors, and is reasonably calculated to carry out
    effectively the purposes and policy of this chapter.  To the extent
    the application covers cruises, as authorized under section 1183 of
    this Appendix, the Secretary of Transportation may make the portion
    of this last determination relating to parity on the basis that any
    foreign flag cruise from the United States competes with any
    American flag cruise from the United States.
    (b) Statements as to financial interests to accompany application;
        penalty for false statements
      Every application for an operating-differential subsidy under the
    provisions of this subchapter shall be accompanied by statements
    disclosing the names of all persons having any pecuniary interest,
    direct or indirect, in such application, or in the ownership or use
    of the vessel or vessels, routes, or lines covered thereby, and the
    nature and extent of any such interest, together with such
    financial and other statements as may be required by the Secretary
    of Transportation. All such statements shall be under oath or
    affirmation and in such form as the Secretary of Transportation
    shall prescribe.  Any person who, in an application for financial
    aid under this subchapter or in any statement required to be filed
    therewith, willfully makes any untrue statement of a material fact,
    shall be guilty of a misdemeanor.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 601, 49 Stat. 2001; Pub. L.
    87-45, Sec. 2, May 27, 1961, 75 Stat. 90; Pub. L. 91-469, Sec. 14,
    35(a), (h), Oct. 21, 1970, 84 Stat. 1023, 1035, 1036; Pub. L.
    91-603, Sec. 4(c), (d), Dec. 31, 1970, 84 Stat. 1675; Pub. L.
    97-31, Sec. 12(93), Aug. 6, 1981, 95 Stat. 161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Subsec. (a). Pub. L. 97-31 substituted ''Secretary of
    Transportation'' for ''Secretary of Commerce'' in two places and
    for ''Commission'' in one place.  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 substituted ''Secretary of
    Transportation'' for ''Commission'' in two places.  For prior
    transfers of functions of the Commission, meaning the United States
    Maritime Commission, see Transfer of Functions note below.
      1970 - Subsec. (a). Pub. L. 91-603 included the leasing of
    vessels in cl. (2).
      Pub. L. 91-469 inserted definition of ''essential service'', and
    substituted ''an essential service'' for ''such service, route, or
    line'' in cl. (1) and ''in an essential service'' for ''and
    maintain the service, route, or line'' in cl. (2); substituted
    ''Secretary of Commerce'' for ''Commission'' in two places; and
    substituted ''he'' for ''it'' in third sentence preceding
    ''determines that'', respectively.
      1961 - Subsec. (a). Pub. L. 87-45 required the Federal Maritime
    Board to consider applications for financial aid in the operation
    of vessels in cruises under section 1183 of this Appendix, and
    permitted the Board, to the extent the application covers such
    cruises, to make the portion of the determination relating to
    parity on the basis that any foreign flag cruise from the United
    States competes with any American flag cruise from the United
    States.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1152, 1185a of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1172                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1172. Determination of necessity of subsidy to meet
        competition
 
-STATUTE-
      Except with respect to cruises authorized under section 1183 of
    this Appendix, no contract for an operating-differential subsidy
    shall be made by the Secretary of Transportation for the operation
    of a vessel or vessels to meet foreign competition, except direct
    foreign-flag competition, until and unless the Secretary of
    Transportation, after a full and complete investigation and
    hearing, shall determine that an operating-differential subsidy is
    necessary to meet competition of foreign-flag ships.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 602, 49 Stat. 2002; June
    23, 1938, ch. 600, Sec. 40(b), 52 Stat. 964; Pub. L. 87-45, Sec. 3,
    May 27, 1961, 75 Stat. 91; Pub. L. 91-469, Sec. 35(a), Oct. 21,
    1970, 84 Stat. 1035; Pub. L. 97-31, Sec. 12(94), Aug. 6, 1981, 95
    Stat. 161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1970 - Pub. L. 91-469 substituted ''Secretary of Commerce'' for
    ''Commission'' in two places.
      1961 - Pub. L. 87-45 excepted cruises authorized under section
    1183 of this Appendix.
      1938 - Act June 23, 1938, substituted ''operating-differential
    subsidy'' for ''operating subsidy''.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1173                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1173. Contracts for payment of subsidy
 
-STATUTE-
    (a) Authorization of contracts
      If the Secretary of Transportation approves the application, he
    may enter into a contract with the applicant for the payment of an
    operating-differential subsidy determined in accordance with the
    provisions of subsection (b) of this section, for the operation of
    such vessel or vessels in an essential service and in cruises
    authorized under section 1183 of this Appendix for a period not
    exceeding twenty years, and subject to such reasonable terms and
    conditions, consistent with this chapter, as the Secretary of
    Transportation shall require to effectuate the purposes and policy
    of this chapter, including a performance bond with approved
    sureties, if such bond is required by the Secretary of
    Transportation.
    (b) Amount of subsidy
      Such contract shall provide, except as the parties should agree
    upon a lesser amount, that the amount of the operating-differential
    subsidy for the operation of vessels in an essential service shall
    equal the excess of the subsidizable wage costs of the United
    States officers and crews, the fair and reasonable cost of
    insurance, subsistence of officers and crews on passenger vessels,
    as defined in section 1183 of this Appendix, maintenance, and
    repairs not compensated by insurance, incurred in the operation
    under United States registry of the vessel or vessels covered by
    the contract, over the estimated fair and reasonable cost of the
    same items of expense (after deducting therefrom any estimated
    increase in such items necessitated by features incorporated
    pursuant to the provisions of section 1151(b) of this Appendix) if
    such vessel or vessels were operated under the registry of a
    foreign country whose vessels are substantial competitors of the
    vessel or vessels covered by the contract: Provided, however, That
    the Secretary of Transportation may, with respect to any vessel in
    an essential bulk cargo carrying service as described in section
    1121(b) of this Appendix, pay, in lieu of the
    operating-differential subsidy provided by this subsection (b),
    such sums as he shall determine to be necessary to make the cost of
    operating such vessel competitive with the cost of operating
    similar vessels under the registry of a foreign country.  For any
    period during which a vessel cruises as authorized by section 1183
    of this Appendix, operating-differential subsidy shall be computed
    as though the vessel were operating on the essential service to
    which the vessel is assigned: Provided, however, That if the cruise
    vessel calls at a port or ports outside of its assigned service,
    but which is served with passenger vessels (as defined in section
    1183 of this Appendix) by another subsidized operator at an
    operating-differential subsidy rate for wages lower than the cruise
    vessel has on its assigned essential service, the
    operating-differential subsidy rates for each of the subsidizable
    items for each day (a fraction of a day to count as a day) that the
    vessel stops at such port shall be at the respective rates
    applicable to the subsidized operator regularly serving the area.
    (c) ''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
      (1) When used in this section -
      (A) The term ''collective bargaining costs'' means the annual
    cost, calculated on the basis of the per diem rate of expense as of
    any date, of all items of expense required of the applicant through
    collective bargaining or other agreement, covering the employ of
    United States officers and crew of a vessel, including payments
    required by law to assure old-age pensions, unemployment benefits,
    or similar benefits and taxes or other governmental assessments on
    crew payrolls, but excluding subsistence of officers and crews on
    vessels other than passenger vessels as defined in section 1183 of
    this Appendix and costs relating to:
        (i) the officers or members of the crew that the Secretary of
      Transportation has found, prior to the award of a contract for
      the construction or reconstruction of a vessel, to be unnecessary
      for the efficient and economical operation of such vessel:
      Provided, That the Secretary of Transportation shall afford
      representatives of the collective-bargaining unit or units
      responsible for the manning of the vessel an opportunity to
      comment on such finding prior to the effective date of such
      finding: And provided further, That in determining whether
      officers or members of the crew are necessary for the efficient
      and economical operation of such vessel, the Secretary of
      Transportation shall give due consideration to, but shall not be
      bound by, wage and manning scales and working conditions required
      by a bona fide collective-bargaining agreement, or
        (ii) those officers or members of the crew that the Secretary
      of Transportation has found, prior to ninety days following
      October 21, 1970, to be unnecessary for the efficient and
      economical operation of the vessel.
      (B) The term ''base period costs'' means for the base period
    beginning July 1, 1970, and ending June 30, 1971, the
    collective-bargaining costs as of January 1, 1971, less all other
    items of cost that have been disallowed by the Secretary of
    Transportation prior to ninety days following October 21, 1970, and
    not already excluded from collective-bargaining costs under
    subparagraph (A)(i) or (A)(ii) of this subsection.  In any
    subsequent base period the term ''base period costs'' means the
    average of the subsidizable wage cost of United States officers and
    crews for the preceding annual period ending June 30 (calculated
    without regard to the limitation of the last sentence of paragraph
    (D) of this subdivision but increased or decreased by the increase
    or decrease in the index described in subdivision (3) of this
    subsection from January 1 of such annual period to January 1 of the
    base period), and the collective-bargaining costs as of January 1
    of the base period: Provided, That in no event shall the base
    period cost be such that the difference between the base period
    cost and the collective-bargaining costs as of January 1 of any
    base period subsequent to the first base period exceeds
    five-fourths of 1 per centum of the collective-bargaining costs as
    of such January 1 multiplied by the number of years that have
    elapsed since the most recent base period.
      (C) The term ''base period'' means any annual period beginning
    July 1, and ending June 30 with respect to which a base period cost
    is established.
      (D) The term ''subsidizable wage costs of United States officers
    and crews'' in any period other than a base period means the most
    recent base period costs increased or decreased by the increase or
    decrease from January 1 of such base period to January 1 of such
    period in the index described in subdivision (3) hereof, and with
    respect to a base period means the base period cost.  The
    subsidizable wage costs of United States officers and crews in any
    period other than a base period shall not be less than 90 per
    centum of the collective-bargaining costs as of January 1 of such
    period nor greater than 110 per centum of such
    collective-bargaining costs.
      (2) The Secretary of Transportation shall determine the
    collective-bargaining costs on ships in subsidized operation as of
    January 1, 1971, and as of each January 1 thereafter, and shall as
    of intervals of not less than two years nor more than four years,
    establish a new base period cost, except that the Secretary shall
    not establish a new base period unless he announces his intention
    to do so prior to the December 31 that would be included in the new
    base period.
      (3) The Bureau of Labor Statistics shall compile the index
    referred to in subdivision (1). Such index shall consist of the
    average annual change in wages and benefits placed into effect for
    employees covered by collective-bargaining agreements with equal
    weight to be given to changes affecting employees in the
    transportation industry (excluding the offshore maritime industry)
    and to changes affecting employees in private nonagricultural
    industries other than transportation.  Such index shall be based on
    the materials regularly used by the Bureau of Labor Statistics in
    compiling its regularly published statistical series on wage and
    benefit changes arrived at through collective bargaining.  Such
    materials shall remain confidential and not be subject to
    disclosure.
    (d) Foreign wage computation; foreign manning
      Each foreign wage cost computation shall be made after an
    opportunity is given to the contractor to submit in writing and in
    timely fashion all relevant data within his possession.  In making
    the computation, the Secretary shall consider all relevant matter
    so presented and all foreign wage cost data collected at his
    request or on his behalf.  Such foreign cost data shall be made
    available to an interested contractor, unless the Secretary shall
    find that disclosure of the data will prevent him from obtaining
    such data in the future.  In determining foreign manning for
    purposes of this section, the foreign manning determined for any
    ship type with respect to any base period shall not be redetermined
    until the beginning of a new base period.
    (e) Monthly payment of wage subsidy; procedures for calculation and
        payment of subsidy on certain expenses
      The wage subsidy shall be payable monthly for the voyages
    completed during the month, upon the contractor's certification
    that the subsidized vessels were in authorized service during the
    month.  The Secretary of Transportation shall prescribe procedures
    for the calculation and payment of subsidy on items of expense
    which are included in ''collective-bargaining costs'' but are not
    included in the daily rate because they are unpredictably timed.
    (f) Monthly percentage payment of other than wage subsidy; security
        for refund of overpayments; payment of remainder after audit of
        voyage accounts
      Ninety percent of the amount of the insurance and maintenance and
    repair and subsistence of officers and crews subsidy shall be
    payable monthly for the voyages completed during the month on the
    basis of the subsidy estimated to have accrued with respect to such
    voyages.  Any such payment shall be made only after there has been
    furnished to the Secretary of Transportation such security as he
    deems to be reasonable and necessary to assure refund of any
    overpayment.  The contractor and the Secretary of Transportation
    shall audit the voyage accounts as soon as practicable after such
    payment.  The remaining 10 percent of such subsidy shall be payable
    after such audit.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 603, 49 Stat. 2002; Aug. 4,
    1939, ch. 417, Sec. 8, 53 Stat. 1185; Pub. L. 87-45, Sec. 4, May
    27, 1961, 75 Stat. 91; Pub. L. 87-243, Sept. 14, 1961, 75 Stat.
    513; Pub. L. 91-469, Sec. 15-17, 35(a), (i), Oct. 21, 1970, 84
    Stat. 1023, 1024, 1035, 1036; Pub. L. 97-31, Sec. 12(94), Aug. 6,
    1981, 95 Stat. 161.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1970 - Subsec. (a). Pub. L. 91-469, Sec. 15, 35(a), (i),
    substituted ''an essential service'' for ''such service, route, or
    line,'' ''Secretary of Commerce'' for ''Commission'' in three
    places, and ''he'' for ''it'' before ''may enter'', respectively.
      Subsec. (b). Pub. L. 91-469, Sec. 16, in amending first sentence,
    inserted '', except as the parties should agree upon a lesser
    amount,'' after ''shall provide'', ''subsistence of officers and
    crews on passenger vessels, as defined in section 1183 of this
    Appendix,'' after ''cost of insurance,'' and proviso for payment of
    necessary sums to make operating costs of American-flag vessels
    providing bulk cargo carrying services competitive with operating
    costs of similar vessels under foreign registry, and substituted
    ''vessels in an essential service shall equal the excess of the
    subsidizable wage costs of the United States officers and crews,''
    for ''vessels on a service, route, or line shall not exceed the
    excess of'', ''maintenance, and repairs not compensated by
    insurance'' for ''maintenance, repairs not compensated by
    insurance,'' and ''incurred'' for ''wages and subsistence of
    officers and crews, and any other items of expense in which the
    Commission shall find and determine that the applicant is at a
    substantial disadvantage in competition with vessels of the foreign
    country hereinafter referred to,''.
      Subsecs. (c) to (e). Pub. L. 91-469, Sec. 17(1), added subsecs.
    (c) to (e). Former subsec. (c) redesignated (f).
      Subsec. (f). Pub. L. 91-469, Sec. 17, redesignated former subsec.
    (c) as (f), substituted provision for monthly payment of ninety
    percent of subsidy (insurance and maintenance and repair and
    subsistence of officers and crews) on basis of estimated accrual of
    subsidy and payment of remaining ten percent after audit of voyage
    accounts for prior provisions for determination and payment of
    subsidy on basis of final accounting made annually or after some
    agreed fixed period and for payments on account limited to 75 per
    centum of estimated accrued amount and an additional 15 per centum
    for any particular voyage after an audit, substituted provision to
    ''assure'' rather than ''insure'' refund, and repealed second par.
    prohibition against payment of subsidy until contractor provided
    evidence that minimum wages prescribed by Secretary of Commerce
    under section 1131(a) of this Appendix had been paid to ships
    personnel.
      1961 - Subsec. (a). Pub. L. 87-45, Sec. 4(a), inserted ''and in
    cruises authorized under section 1183 of this Appendix'' after ''in
    such service, route, or line''.
      Subsec. (b). Pub. L. 87-45, Sec. 4(b), inserted provisions for
    the computation of the subsidy for periods during which a vessel
    cruises as authorized by section 1183 of this Appendix.
      Subsec. (c). Pub. L. 87-243 increased, effective on and after
    July 1, 1962, the amount payable on account from not more than 75
    per centum to not more than 90 per centum of the amount estimated
    to have accrued on account of such subsidy, and reduced the amount
    payable to the contractor after the audit of the voyage from 15 to
    5 per centum.
      1939 - Subsec. (c). Act Aug. 4, 1939, permitted payment to the
    contractor of an additional 15 per centum.
     OPERATING-DIFFERENTIAL SUBSIDY CONTRACTS; AMENDMENT AND RECAPTURE
                                 PROVISIONS
      Section 40 of Pub. L. 91-469 provided that:
      ''(a) The amendments made by this Act (see Short Title of 1970
    Amendment note set out under section 1245 of this Appendix) shall
    not affect any contract with the Secretary of Commerce or his
    delegates that is in effect on the date of enactment of this Act
    (Oct. 21, 1970). At the request of the other party to such
    operating-differential subsidy contract, the Secretary of Commerce
    shall amend such contract so as to be in accordance with all of the
    amendments made by this Act. No amendment made by this Act shall be
    incorporated in such contract unless all such amendments are
    incorporated in such contract, except that if the other party
    elects to continue under the ''old fund'' as provided in section
    607 as amended by section 21 of this Act (section 1177 of this
    Appendix), such amendment need not be incorporated in such
    contract.  Until such contract is amended or if such contract is
    not amended, it shall be administered in accordance with the
    provisions of the Merchant Marine Act, 1936 (this chapter) as they
    existed immediately prior to enactment of this Act. Nothing in
    section 16 of this Act amending section 603 of the Merchant Marine
    Act, 1936 (subsec. (b) of this section) or in the contracts made
    thereunder, shall be deemed to affect or to change existing law or
    contracts with respect to the proceedings now pending before the
    Secretary of Commerce relating to the payment of subsidy in respect
    of cargoes covered by section 901(b)(1) of the Merchant Marine Act,
    1936 (section 1241(b)(1) of this Appendix), section 616(a) of Title
    15, United States Code, or section 2631 of Title 10, United States
    Code.
      ''(b) If any operating-differential subsidy contract in existence
    on the date of enactment of this Act (Oct. 21, 1970) is amended by
    including all of the amendments made by this Act or all of the
    amendments made by this Act other than those made by section 21
    (amending section 1177 of this Appendix), the operator may elect to
    terminate his recapture period as of the date of such contract
    amendment and have his recapture computed on the basis of the
    shortened period, or he may elect to continue his recapture period
    until the end of its ten-year term and continue his recapture
    obligations as provided by the Merchant Marine Act, 1936, prior to
    the enactment of this Act (see Short Title of 1970 Amendment note
    set out under section 1245 of this Appendix) until the end of such
    ten-year period.  The amendments in either event shall provide
    that, with respect to seafaring personnel, in determining the
    rights and obligations of the contractor under such contract, the
    limitation of section 805(c) of the Merchant Marine Act, 1936
    (section 1223(c) of this Appendix), as it existed immediately
    before the enactment of this Act (Oct. 21, 1970) shall not apply.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1183, 1185a of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1174                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1174. Additional subsidy; when authorized
 
-STATUTE-
      If in the case of any particular foreign-trade route the
    Secretary of Transportation shall find after consultation with the
    Secretary of State, that the subsidy provided for in this
    subchapter is in any respect inadequate to offset the effect of
    governmental aid paid to foreign competitors, he may grant such
    additional subsidy as he determines to be necessary for that
    purpose.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 604, 49 Stat. 2003; June
    23, 1938, ch. 600, Sec. 21, 52 Stat. 959; Aug. 4, 1939, ch. 417,
    Sec. 9, 53 Stat. 1185; Pub. L. 97-31, Sec. 12(95), Aug. 6, 1981, 95
    Stat. 162.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Commission'' and ''he'' for ''it'', and struck out provision
    relating to subsidy voting requirements.  For prior transfers of
    functions of the Commission, meaning the United States Maritime
    Commission, see Transfer of Functions note set out below.
      1939 - Act Aug. 4, 1939, reduced requirement in proviso from
    unanimous vote to vote of four commissioners.
      1938 - Act June 23, 1938, authorized additional subsidies only
    where the Commission (which had reference to United States Maritime
    Commission) by unanimous vote finds after consultation with the
    Secretary of State that the subsidy is inadequate.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1175                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1175. Vessels excluded from subsidy
 
-STATUTE-
    (a) Vessels engaged in coastwise or intercoastal trade; vessels on
        inland waterways
      No operating-differential subsidy shall be paid for the operation
    of any vessel on a voyage on which it engages in coastwise or
    intercoastal trade: Provided, however, That such subsidy may be
    paid on a round-the-world voyage or a round voyage from the west
    coast of the United States to a European port or ports or a round
    voyage from the Atlantic coast to the Orient which includes
    intercoastal ports of the United States or a voyage in foreign
    trade on which the vessel may stop at the State of Hawaii, or an
    island possession or island territory of the United States, and if
    the subsidized vessel earns any gross revenue on the carriage of
    mail, passengers, or cargo by reason of such coastal or
    intercoastal trade the subsidy payment for the entire voyage shall
    be reduced by an amount which bears the same ratio to the subsidy
    otherwise payable as such gross revenue bears to the gross revenue
    derived from the entire voyage.  No vessel operating on the inland
    waterways of the United States shall be considered for the purposes
    of this chapter to be operating in foreign trade.
    (b) Vessels more than 25 years old
      No operating-differential subsidy shall be paid for the operation
    of a vessel after the calendar year the vessel becomes 25 years of
    age, unless the Secretary of Transportation has determined, before
    October 8, 1996, that it is in the public interest to grant such
    financial aid for the operation of such vessel.
    (c) Vessels to be operated in an essential service served by
        citizens of United States
      No contract shall be made under this subchapter with respect to a
    vessel to be operated in an essential service served by citizens of
    the United States which would be in addition to the existing
    service, or services, unless the Secretary of Transportation shall
    determine after proper hearing of all parties that the service
    already provided by vessels of United States registry is
    inadequate, and that in the accomplishment of the purposes and
    policy of this chapter additional vessels should be operated
    thereon; and no contract shall be made with respect to a vessel
    operated or to be operated in an essential service served by two or
    more citizens of the United States with vessels of United States
    registry, if the Secretary of Transportation shall determine the
    effect of such a contract would be to give undue advantage or be
    unduly prejudicial, as between citizens of the United States, in
    the operation of vessels in such essential service unless following
    public hearing, due notice of which shall be given to each operator
    serving such essential service, the Secretary of Transportation
    shall find that it is necessary to enter into such contract in
    order to provide adequate service by vessels of United States
    registry.  The Secretary of Transportation in determining for the
    purposes of this section whether services are competitive, shall
    take into consideration the type, size, and speed of the vessels
    employed, whether passenger or cargo, or combination passenger and
    cargo, vessels, the ports or ranges between which they run, the
    character of cargo carried, and such other facts as he may deem
    proper.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 605, 49 Stat. 2003; July
    17, 1952, ch. 939, Sec. 15, 66 Stat. 764; Pub. L. 86-3, Sec.
    18(b)(2), Mar. 18, 1959, 73 Stat. 12; Pub. L. 86-518, Sec. 1, June
    12, 1960, 74 Stat. 216; Pub. L. 89-348, Sec. 1(9), Nov. 8, 1965, 79
    Stat. 1310; Pub. L. 91-469, Sec. 18, 19, 26(b), 35(a), (j), Oct.
    21, 1970, 84 Stat. 1025, 1026, 1034-1036; Pub. L. 97-31, Sec.
    12(96), Aug. 6, 1981, 95 Stat. 162; Pub. L. 104-239, Sec. 3(a),
    Oct. 8, 1996, 110 Stat. 3126.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Subsec. (b). Pub. L. 104-239 amended subsec. (b)
    generally.  Prior to amendment, subsec. (b) read as follows: ''No
    operating-differential subsidy shall be paid for the operation of a
    vessel that is more than twenty-five years of age unless the
    Secretary of Transportation finds that it is to the public interest
    to grant such financial aid for the operation of such vessel and
    enters a formal order thereon.''
      1981 - Subsecs. (b), (c). Pub. L. 97-31 substituted ''Secretary
    of Transportation'' for ''Secretary of Commerce'' wherever
    appearing.
      1970 - Subsec. (a). Pub. L. 91-469, Sec. 26(b), struck out ''on
    the Great Lakes or'' after ''No vessel operating'' in last
    sentence.
      Subsec. (b). Pub. L. 91-469, Sec. 18, substituted ''unless the
    Secretary of Commerce'' for ''unless the Commission'' and deleted
    preceding such words ''except one whose life expectancy has been
    determined as provided in section 1177(b) of this Appendix for a
    period in no case to exceed the life expectancy determined
    thereunder,''.
      Subsec. (c). Pub. L. 91-469, Sec. 19, 35(a), (j), substituted
    ''in an essential service'' for ''on a service, route, or line'',
    ''an essential service'' for ''a service, route, or line'', and
    ''such essential service'' for ''competitive services, routes, or
    lines,'' and struck out ''in such service, route, or line'' before
    ''is inadequate'' in first sentence; substituted ''Secretary of
    Commerce'' for ''Commission'' in four places; and substituted
    ''he'' for ''it'' before ''may deem'' in last sentence,
    respectively.
      1965 - Subsec. (b). Pub. L. 89-348 struck out provisions which
    required an annual report covering each case and the reasons
    therefor in which an exception is made to the prohibition against
    payment of an operating-differential subsidy for the operation of a
    vessel beyond its economic life.
      1960 - Subsec. (b). Pub. L. 86-518 substituted ''twenty-five
    years'' for ''twenty years''.
      1959 - Subsec. (a). Pub. L. 86-3 included stops at the State of
    Hawaii.
      1952 - Subsec. (b). Act July 17, 1952, permitted the
    recomputation of the life-expectancy of a reconstructed or
    reconditioned vessel in use under an operating differential-subsidy
    contract, and provided for recomputation of depreciation changes.
                      EFFECTIVE DATE OF 1960 AMENDMENT
      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.
     REVISION OF CONTRACT, 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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1183, 1185a, 1213 of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1176                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1176. Readjustments; change in service; withdrawal from
        service; payment of excess profits; wages, etc.; American
        materials
 
-STATUTE-
      Every contract for an operating-differential subsidy under this
    subchapter shall provide (1) that the amount of the future payments
    to the contractor shall be subject to review and readjustment from
    time to time, but not more frequently than once a year, at the
    instance of the Secretary of Transportation or of the contractor.
    If any such readjustment cannot be reached by mutual agreement, the
    Secretary of Transportation, on his own motion or on the
    application of the contractor, shall, after a proper hearing,
    determine the facts and make such readjustment in the amount of
    such future payments as he may determine to be fair and reasonable
    and in the public interest.  The testimony in every such proceeding
    shall be reduced to writing and filed in the office of the
    Secretary of Transportation. His decision shall be based upon and
    governed by the changes which may have occurred since the date of
    the said contract, with respect to the items theretofore considered
    and on which such contract was based, and other conditions
    affecting shipping, and shall be promulgated in a formal order,
    which shall be accompanied by a report in writing in which the
    Secretary of Transportation shall state his findings of fact; (2)
    that the compensation to be paid under it shall be reduced, under
    such terms and in such amounts as the Secretary of Transportation
    shall determine, for any periods in which the vessel or vessels are
    laid up; (3) that if the Secretary of Transportation shall
    determine that a change in an essential service, which is receiving
    an operating-differential subsidy under this subchapter, is
    necessary in the accomplishment of the purposes of this chapter, it
    may make such change upon such readjustment of payments to the
    contractor as shall be arrived at by the method prescribed in
    clause (1) of these conditions; (4) that if at any time the
    contractor receiving an operating-differential subsidy claims that
    he cannot maintain and operate his vessels in such an essential
    service, with a reasonable profit upon his investment, and applies
    to the Secretary of Transportation for a modification or rescission
    of his contract to maintain such essential service, and the
    Secretary of Transportation determines that such claim is proved
    the Secretary of Transportation shall modify or rescind such
    contract and permit the contractor to withdraw such vessels from
    such essential service upon a date fixed by the Secretary of
    Transportation, and upon the date of such withdrawal the further
    payment of the operating differential subsidy shall cease and the
    contractor be discharged from any further obligation under such
    contract; (5) that the contractor shall conduct his operations with
    respect to essential services and any services authorized under
    section 1183 of this Appendix, covered by his contract in an
    economical and efficient manner, and (6) that whenever practicable,
    an operator who receives subsidy with respect to subsistence of
    officers and crews shall use as such subsistence items only
    articles, materials, and supplies of the growth, production, and
    manufacture of the United States, as defined in section 1155 of
    this Appendix, except when it is necessary to purchase supplies
    outside the United States to enable such vessel to continue and
    complete her voyage, and an operator who receives subsidy with
    respect to repairs shall perform such repairs within any of the
    United States or the Commonwealth of Puerto Rico, except in an
    emergency.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 606, 49 Stat. 2004; June
    23, 1938, ch. 600, Sec. 22, 52 Stat. 960; July 17, 1952, ch. 939,
    Sec. 16, 66 Stat. 764; May 10, 1956, ch. 247, Sec. 1, 70 Stat. 148;
    Pub. L. 86-624, Sec. 35(b), July 12, 1960, 74 Stat. 421; Pub. L.
    87-45, Sec. 5, May 27, 1961, 75 Stat. 91; Pub. L. 91-469, Sec. 20,
    35(a), (k), Oct. 21, 1970, 84 Stat. 1026, 1035, 1036; Pub. L.
    97-31, Sec. 12(96), Aug. 6, 1981, 95 Stat. 162.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Secretary of Commerce'' wherever appearing.
      1970 - Pub. L. 91-469, Sec. 35(a), substituted ''Secretary of
    Commerce'' for ''Commission'' wherever appearing.
      Cl. (1). Pub. L. 91-469, Sec. 35(k)(1)-(3), substituted ''his''
    for ''its'' in two places, ''he'' for ''it'', and ''His'' for
    ''Its'', respectively.
      Cl. (3). Pub. L. 91-469, Sec. 20(1), 35(k)(2), substituted ''and
    essential service'' for ''the service, route, or line'' and ''he''
    for ''it'', respectively.
      Cl. (4). Pub. L. 91-469, Sec. 20(2), (3), substituted ''in such
    an essential service'' for ''on such service, route, or line'' and
    ''essential service'' for ''service, route, or line'' in two
    places, respectively.
      Cl. (5). Pub. L. 91-469, Sec. 20(4), (5), (6)-(9), struck out cl.
    (5) providing that when at the end of any ten-year period the
    contractor's net profit on his subsidized vessels has averaged more
    than 10 percent of his capital necessarily employed, he shall pay
    one-half of such net profit to the United States, but not exceeding
    the operating-differential subsidy paid to him during the period,
    as partial or complete reimbursement of the operating subsidy;
    redesignated cl. (6) as (5); and substituted therein ''essential
    services'', ''services'', and ''an economical'' for ''the vessel's
    services, routes, and lines'', ''cruises'', and ''the most
    economical'' and struck out therefrom ''but with due regard to the
    wage and manning scales and working conditions prescribed by the
    Commission as provided in subchapter III of this chapter'' after
    ''efficient manner,'', respectively.
      Cls. (6), (7). Pub. L. 91-469, Sec. 20(10), (11), redesignated
    cl. (7) as (6) and substituted ''an operator who received subsidy
    with respect to subsistence of officers and crews shall use as such
    subsistence items'' for ''the operator shall use'', ''1155'' for
    ''1155(a)'', and ''and an operator who receives subsidy with
    respect to repairs shall perform such repairs within any of the
    United States or the Commonwealth of Puerto Rico,'' and struck out
    ''and equipment'' before ''outside the United States'' and
    definition of ''continental limits of the United States'' as
    including States of Alaska and Hawaii, respectively.  Former cl.
    (6) redesignated (5).
      1961 - Cl. (6). Pub. L. 87-45 inserted '', and any cruises
    authorized under section 1183 of this Appendix,'' after ''services,
    routes, and lines''.
      1960 - Pub. L. 86-624 inserted definition of ''continental limits
    of the United States.''
      1956 - Cl. (5). Act May 10, 1956, provided that termination of
    subsidy contract shall not end the 10-year recapture period if
    subsidized operations continue under a new, or consecutive,
    contract.
      1952 - Cl. (5). Act July 17, 1952, substituted ''life expectancy
    of the subsidized vessel determined as provided in section 1177(b)
    of this Appendix'' for ''twenty-year life expectancy of the
    subsidized vessels''.
      1938 - Cl. (5). Act June 23, 1938, substituted ''ten-year
    period'' for ''five-year period'' in three places, and inserted
    provisions to permit computation of net profits without regard to
    capital gains and losses.
                           AMENDMENT OF CONTRACT
      Section 2 of act May 10, 1956, provided that: ''Each
    operating-differential subsidy contract in force on the date of
    enactment of this act (May 10, 1956) shall, if the subsidized
    contractor consents, be amended to conform to the provisions of
    section 606 of the Merchant Marine Act, 1936 (this section), as
    amended by section 1 of this act.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1177 of this Appendix;
    title 26 section 7518.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1177                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1177. Capital construction fund
 
-STATUTE-
    (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
      Any citizen of the United States owning or leasing one or more
    eligible vessels (as defined in subsection (k)(1) of this section)
    may enter into an agreement with the Secretary under, and as
    provided in, this section to establish a capital construction fund
    (hereinafter in this section referred to as the ''fund'') with
    respect to any or all of such vessels.  Any agreement entered into
    under this section shall be for the purpose of providing
    replacement vessels, additional vessels, or reconstructed vessels,
    built in the United States and documented under the laws of the
    United States for operation in the United States foreign, Great
    Lakes, or noncontiguous domestic trade or in the fisheries of the
    United States and shall provide for the deposit in the fund of the
    amounts agreed upon as necessary or appropriate to provide for
    qualified withdrawals under subsection (f) of this section.  The
    deposits in the fund, and all withdrawals from the fund, whether
    qualified or nonqualified, shall be subject to such conditions and
    requirements as the Secretary may by regulations prescribe or are
    set forth in such agreement; except that the Secretary may not
    require any person to deposit in the fund for any taxable year more
    than 50 percent of that portion of such person's taxable income for
    such year (computed in the manner provided in subsection (b)(1)(A)
    of this section) which is attributable to the operation of the
    agreement vessels.
    (b) Ceiling on deposits; lessees; ''agreement vessel'' defined
      (1) The amount deposited under subsection (a) of this section in
    the fund for any taxable year shall not exceed the sum of:
        (A) that portion of the taxable income of the owner or lessee
      for such year (computed as provided in chapter 1 of the Internal
      Revenue Code of 1986 (26 U.S.C. 1 et seq.) but without regard to
      the carryback of any net operating loss or net capital loss and
      without regard to this section) which is attributable to the
      operation of the agreement vessels in the foreign or domestic
      commerce of the United States or in the fisheries of the United
      States,
        (B) the amount allowable as a deduction under section 167 of
      the Internal Revenue Code of 1986 (26 U.S.C. 167) for such year
      with respect to the agreement vessels,
        (C) if the transaction is not taken into account for purposes
      of subparagraph (A), the net proceeds (as defined in joint
      regulations) from (i) the sale or other disposition of any
      agreement vessel, or (ii) insurance or indemnity attributable to
      any agreement vessel, and
        (D) the receipts from the investment or reinvestment of amounts
      held in such fund.
      (2) In the case of a lessee, the maximum amount which may be
    deposited with respect to an agreement vessel by reason of
    paragraph (1)(B) for any period shall be reduced by any amount
    which, under an agreement entered into under this section, the
    owner is required or permitted to deposit for such period with
    respect to such vessel by reason of paragraph (1)(B).
      (3) For purposes of paragraph (1), the term ''agreement vessel''
    includes barges and containers which are part of the complement of
    such vessel and which are provided for in the agreement.
    (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
      Amounts in any fund established under this section shall be kept
    in the depository or depositories specified in the agreement and
    shall be subject to such trustee and other fiduciary requirements
    as may be specified by the Secretary. They may be invested only in
    interest-bearing securities approved by the Secretary; except that,
    if the Secretary consents thereto, an agreed percentage (not in
    excess of 60 percent) of the assets of the fund may be invested in
    the stock of domestic corporations.  Such stock must be currently
    fully listed and registered on an exchange registered with the
    Securities and Exchange Commission as a national securities
    exchange, and must be stock which would be acquired by prudent men
    of discretion and intelligence in such matters who are seeking a
    reasonable income and the preservation of their capital.  If at any
    time the fair market value of the stock in the fund is more than
    the agreed percentage of the assets in the fund, any subsequent
    investment of amounts deposited in the fund, and any subsequent
    withdrawal from the fund, shall be made in such a way as to tend to
    restore the fund to a situation in which the fair market value of
    the stock does not exceed such agreed percentage.  For purposes of
    this subsection, if the common stock of a corporation meets the
    requirements of this subsection and if the preferred stock of such
    corporation would meet such requirements but for the fact that it
    cannot be listed and registered as required because it is nonvoting
    stock, such preferred stock shall be treated as meeting the
    requirements of this subsection.
    (d) Nontaxability of deposits; eligible deposits
      (1) For purposes of the Internal Revenue Code of 1986 -
        (A) taxable income (determined without regard to this section
      and section 7518 of such Code (26 U.S.C. 7518)) for the taxable
      year shall be reduced by an amount equal to the amount deposited
      for the taxable year out of amounts referred to in subsection
      (b)(1)(A) of this section,
        (B) gain from a transaction referred to in subsection (b)(1)(C)
      of this section, shall not be taken into account if an amount
      equal to the net proceeds (as defined in joint regulations) from
      such transaction is deposited in the fund,
        (C) the earnings (including gains and losses) from the
      investment and reinvestment of amounts held in the fund shall not
      be taken into account,
        (D) the earnings and profits of any corporation (within the
      meaning of section 316 of such Code (26 U.S.C. 316)) shall be
      determined without regard to this section and section 7518 of
      such Code (26 U.S.C. 7518), and
        (E) in applying the tax imposed by section 531 of such Code (26
      U.S.C. 531) (relating to the accumulated earnings tax), amounts
      while held in the fund shall not be taken into account.
      (2) Paragraph (1) shall apply with respect to any amount only if
    such amount is deposited in the fund pursuant to the agreement and
    not later than the time provided in joint regulations.
    (e) Accounts within fund: capital account, capital gain account,
        and ordinary income account; limitation on capital losses
      For purposes of this section -
      (1) Within the fund established pursuant to this section three
    accounts shall be maintained:
        (A) the capital account,
        (B) the capital gain account, and
        (C) the ordinary income account.
      (2) The capital account shall consist of -
        (A) amounts referred to in subsection (b)(1)(B) of this
      section,
        (B) amounts referred to in subsection (b)(1)(C) of this section
      other than that portion thereof which represents gain not taken
      into account by reason of subsection (d)(1)(B) of this section,
        (C) the percentage applicable under section 243(a)(1) of the
      Internal Revenue Code of 1986 (26 U.S.C. 243(a)(1)) of any
      dividend received by the fund with respect to which the person
      maintaining the fund would (but for subsection (d)(1)(C) of this
      section) be allowed a deduction under section 243 of the Internal
      Revenue Code of 1986 (26 U.S.C. 243), and
        (D) interest income exempt from taxation under section 103 of
      such Code (26 U.S.C. 103).
      (3) The capital gain account shall consist of -
        (A) amounts representing capital gains on assets held for more
      than 6 months and referred to in subsection (b)(1)(C) or
      (b)(1)(D) of this section reduced by
        (B) amounts representing capital losses on assets held in the
      fund for more than 6 months.
      (4) The ordinary income account shall consist of -
        (A) amounts referred to in subsection (b)(1)(A) of this
      section,
        (B)(i) amounts representing capital gains on assets held for 6
      months or less and referred to in subsection (b)(1)(C) or
      (b)(1)(D) of this section, reduced by -
        (ii) amounts representing capital losses on assets held in the
      fund for 6 months or less,
        (C) interest (not including any tax-exempt interest referred to
      in paragraph (2)(D)) and other ordinary income (not including any
      dividend referred to in subparagraph (E)) received on assets held
      in the fund,
        (D) ordinary income from a transaction described in subsection
      (b)(1)(C) of this section, and
        (E) the portion of any dividend referred to in paragraph (2)(C)
      not taken into account under such paragraph.
      (5) Except on termination of a fund, capital losses referred to
    in paragraph (3)(B) or in paragraph (4)(B)(ii) shall be allowed
    only as an offset to gains referred to in paragraph (3)(A) or
    (4)(B)(i), respectively.
    (f) Purposes of qualified withdrawals; nonqualified withdrawal
        treatment for nonfulfillment of substantial obligations
      (1) A qualified withdrawal from the fund is one made in
    accordance with the terms of the agreement but only if it is for:
        (A) the acquisition, construction, or reconstruction of a
      qualified vessel,
        (B) the acquisition, construction, or reconstruction of barges
      and containers which are part of the complement of a qualified
      vessel, or
        (C) the payment of the principal on indebtedness incurred in
      connection with the acquisition, construction or reconstruction
      of a qualified vessel or a barge or container which is part of
      the complement of a qualified vessel.
    Except to the extent provided in regulations prescribed by the
    Secretary, subparagraph (B), and so much of subparagraph (C) as
    relates only to barges and containers, shall apply only with
    respect to barges and containers constructed in the United States.
      (2) Under joint regulations, if the Secretary determines that any
    substantial obligation under any agreement is not being fulfilled,
    he may, after notice and opportunity for hearing to the person
    maintaining the fund, treat the entire fund or any portion thereof
    as an amount withdrawn from the fund in a nonqualified withdrawal.
    (g) Tax treatment of qualified withdrawals; basis: reduction
      (1) Any qualified withdrawal from a fund shall be treated -
        (A) first as made out of the capital account,
        (B) second as made out of the capital gain account, and
        (C) third as made out of the ordinary income account.
      (2) If any portion of a qualified withdrawal for a vessel, barge,
    or container is made out of the ordinary income account, the basis
    of such vessel, barge, or container shall be reduced by an amount
    equal to such portion.
      (3) If any portion of a qualified withdrawal for a vessel, barge,
    or container is made out of the capital gain account, the basis of
    such vessel, barge, or container shall be reduced by an amount
    equal to such portion.
      (4) If any portion of a qualified withdrawal to pay the principal
    on any indebtedness is made out of the ordinary income account or
    the capital gain account, then an amount equal to the aggregate
    reduction which would be required by paragraphs (2) and (3) if this
    were a qualified withdrawal for a purpose described in such
    paragraphs shall be applied,in the order provided in joint
    regulations, to reduce the basis of vessels, barges, and containers
    owned by the person maintaining the fund.  Any amount of a
    withdrawal remaining after the application of the preceding
    sentence shall be treated as a nonqualified withdrawal.
      (5) If any property the basis of which was reduced under
    paragraph (2), (3), or (4) is disposed of, any gain realized on
    such disposition, to the extent it does not exceed the aggregate
    reduction in the basis of such property under such paragraphs,
    shall be treated as an amount referred to in subsection (h)(3)(A)
    of this section which was withdrawn on the date of such
    disposition.  Subject to such conditions and requirements as may be
    provided in joint regulations, the preceding sentence shall not
    apply to a disposition where there is a redeposit in an amount
    determined under joint regulations which will, insofar as
    practicable, restore the fund to the position it was in before the
    withdrawal.
    (h) Tax treatment of nonqualified withdrawals; FIFO and LIFO bases;
        interest rate; amounts not withdrawn after 25 years; highest
        marginal rate of tax
      (1) Except as provided in subsection (i) of this section, any
    withdrawal from a fund which is not a qualified withdrawal shall be
    treated as a nonqualified withdrawal.
      (2) Any nonqualified withdrawal from a fund shall be treated -
        (A) first as made out of the ordinary income account,
        (B) second as made out of the capital gain account, and
        (C) third as made out of the capital account.
    For purposes of this section, items withdrawn from any account
    shall be treated as withdrawn on a first-in-first-out basis; except
    that (i) any nonqualified withdrawal for research, development, and
    design expenses incident to new and advanced ship design, machinery
    and equipment, and (ii) any amount treated as a nonqualified
    withdrawal under the second sentence of subsection (g)(4) of this
    section, shall be treated as withdrawn on a last-in-first-out
    basis.
      (3) For purposes of the Internal Revenue Code of 1986 -
        (A) any amount referred to in paragraph (2)(A) shall be
      included in income as an item of ordinary income for the taxable
      year in which the withdrawal is made,
        (B) any amount referred to in paragraph (2)(B) shall be
      included in income for the taxable year in which the withdrawal
      is made as an item of gain realized during such year from the
      disposition of an asset held for more than 6 months, and
        (C) for the period on or before the last date prescribed for
      payment of tax for the taxable year in which this withdrawal is
      made -
          (i) no interest shall be payable under section 6601 of such
        Code (26 U.S.C. 6601) and no addition to the tax shall be
        payable under section 6651 of such Code (26 U.S.C. 6651),
          (ii) interest on the amount of the additional tax
        attributable to any item referred to in subparagraph (A) or (B)
        shall be paid at the applicable rate (as defined in paragraph
        (4)) from the last date prescribed for payment of the tax for
        the taxable year for which such item was deposited in the fund,
        and
          (iii) no interest shall be payable on amounts referred to in
        clauses (i) and (ii) of paragraph (2) or in the case of any
        nonqualified withdrawal arising from the application of the
        recapture provision of section 1176(5) of this Appendix as in
        effect on December 31, 1969.
      (4) For purposes of paragraph (3)(C)(ii), the applicable rate of
    interest for any nonqualified withdrawal -
        (A) made in a taxable year beginning in 1970 or 1971 is 8
      percent, or
        (B) made in a taxable year beginning after 1971, shall be
      determined and published jointly by the Secretary of the Treasury
      and the Secretary and shall bear a relationship to 8 percent
      which the Secretaries determine under joint regulations to be
      comparable to the relationship which the money rates and
      investment yields for the calendar year immediately preceding the
      beginning of the taxable year bear to the money rates and
      investment yields for the calendar year 1970.
      (5) Amount not withdrawn from fund after 25 years from deposit
    taxed as nonqualified withdrawal. -
        (A) In general. - The applicable percentage of any amount which
      remains in a capital construction fund at the close of the 26th,
      27th, 28th, 29th, or 30th taxable year following the taxable year
      for which such amount was deposited shall be treated as a
      nonqualified withdrawal in accordance with the following table:
     If the amount remains in the fund at the             The applicable
     close of the -                                      percentage is -
     26th taxable year                                        20 percent
     27th taxable year                                        40 percent
     28th taxable year                                        60 percent
     29th taxable year                                        80 percent
     30th taxable year                                      100 percent.
        (B) Earnings treated as deposits. - The earnings of any capital
      construction fund for any taxable year (other than net gains)
      shall be treated for purposes of this paragraph as an amount
      deposited for such taxable year.
        (C) Amounts committed treated as withdrawn. - For purposes of
      subparagraph (A), an amount shall not be treated as remaining in
      a capital construction fund at the close of any taxable year to
      the extent there is a binding contract at the close of such year
      for a qualified withdrawal of such amount with respect to an
      identified item for which such withdrawal may be made.
        (D) Authority to treat excess funds as withdrawn. - If the
      Secretary determines that the balance in any capital construction
      fund exceeds the amount which is appropriate to meet the vessel
      construction program objectives of the person who established
      such fund, the amount of such excess shall be treated as a
      nonqualified withdrawal under subparagraph (A) unless such person
      develops appropriate program objectives within 3 years to
      dissipate such excess.
        (E) Amounts in fund on january 1, 1987. - For purposes of this
      paragraph, all amounts in a capital construction fund on January
      1, 1987, shall be treated as deposited in such fund on such date.
      (6) Nonqualified withdrawals taxed at highest marginal rate. -
        (A) In general. - In the case of any taxable year for which
      there is a nonqualified withdrawal (including any amount so
      treated under paragraph (5)), the tax imposed by chapter 1 of the
      Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) shall be
      determined -
          (i) by excluding such withdrawal from gross income, and
          (ii) by increasing the tax imposed by chapter 1 of such Code
        by the product of the amount of such withdrawal and the highest
        rate of tax specified in section 1 (section 11 in the case of a
        corporation) of such Code (26 U.S.C. 1, 11).
      With respect to the portion of any nonqualified withdrawal made
      out of the capital gain account during a taxable year to which
      section 1(h) or 1201(a) of such Code (26 U.S.C. 1(h), 1201(a))
      applies, the rate of tax taken into account under the preceding
      sentence shall not exceed 20 percent (34 percent in the case of a
      corporation).
        (B) Tax benefit rule. - If any portion of a nonqualified
      withdrawal is properly attributable to deposits (other than
      earnings on deposits) made by the taxpayer in any taxable year
      which did not reduce the taxpayer's liability for tax under
      chapter 1 (26 U.S.C. 1 et seq.) for any taxable year preceding
      the taxable year in which such withdrawal occurs -
          (i) such portion shall not be taken into account under
        subparagraph (A), and
          (ii) an amount equal to such portion shall be treated as
        allowed as a deduction under section 172 of such Code (26
        U.S.C. 172) for the taxable year in which such withdrawal
        occurs.
        (C) Coordination with deduction for net operating losses. - Any
      nonqualified withdrawal excluded from gross income under
      subparagraph (A) shall be excluded in determining taxable income
      under section 172(b)(2) of the Internal Revenue Code of 1986 (26
      U.S.C. 172(b)(2)).
    (i) Corporate reorganizations and partnership changes
      Under joint regulations -
        (1) a transfer of a fund from one person to another person in a
      transaction to which section 381 of the Internal Revenue Code of
      1986 (26 U.S.C. 381) applies may be treated as if such
      transaction did not constitute a nonqualified withdrawal, and
        (2) a similar rule shall be applied in the case of a
      continuation of a partnership (within the meaning of subchapter K
      (FOOTNOTE 1) of such Code (26 U.S.C. 701 et seq.)).
       (FOOTNOTE 1) So in original.  Probably should be followed by
    ''of chapter 1''.
    (j) Treatment of existing funds; relation of old to new fund
      (1) Any person who was maintaining a fund or funds (hereinafter
    in this subsection referred to as ''old fund'') under this section
    (as in effect before the enactment of this subsection) may elect to
    continue such old fund but -
        (A) may not hold moneys in the old fund beyond the expiration
      date provided in the agreement under which such old fund is
      maintained (determined without regard to any extension or renewal
      entered into after April 14, 1970),
        (B) may not simultaneously maintain such old fund and a new
      fund established under this section, and
        (C) if he enters into an agreement under this section to
      establish a new fund, may agree to the extension of such
      agreement to some or all of the amounts in the old fund.
      (2) In the case of any extension of an agreement pursuant to
    paragraph (1)(C), each item in the old fund to be transferred shall
    be transferred in a nontaxable transaction to the appropriate
    account in the new fund established under this section.  For
    purposes of subsection (h)(3)(C) of this section, the date of the
    deposit of any item so transferred shall be July 1, 1971, or the
    date of the deposit in the old fund, whichever is the later.
    (k) Definitions
      For purposes of this section -
      (1) The term ''eligible vessel'' means any vessel -
        (A) constructed in the United States and, if reconstructed,
      reconstructed in the United States,
        (B) documented under the laws of the United States, and
        (C) operated in the foreign or domestic commerce of the United
      States or in the fisheries of the United States.
    Any vessel which (i) was constructed outside of the United States
    but documented under the laws of the United States on April 15,
    1970, or (ii) constructed outside the United States for use in the
    United States foreign trade pursuant to a contract entered into
    before April 15, 1970, shall be treated as satisfying the
    requirements of subparagraph (A) of this paragraph and the
    requirements of subparagraph (A) of paragraph (2).
      (2) The term ''qualified vessel'' means any vessel -
        (A) constructed in the United States and, if reconstructed,
      reconstructed in the United States,
        (B) documented under the laws of the United States, and
        (C) which the person maintaining the fund agrees with the
      Secretary will be operated in the United States foreign, Great
      Lakes, or noncontiguous domestic trade or in the fisheries of the
      United States.
      (3) The term ''agreement vessel'' means any eligible vessel or
    qualified vessel which is subject to an agreement entered into
    under this section.
      (4) The term ''United States'', when used in a geographical
    sense, means the continental United States including Alaska,
    Hawaii, and Puerto Rico.
      (5) The term ''United States foreign trade'' includes (but is not
    limited to) those areas in domestic trade in which a vessel built
    with construction-differential subsidy is permitted to operate
    under the first sentence of section 1156 of this Appendix.
      (6) The term ''joint regulations'' means regulations prescribed
    under subsection (l) of this section.
      (7) The term ''vessel'' includes cargo handling equipment which
    the Secretary determines is intended for use primarily on the
    vessel.  The term ''vessel'' also includes an ocean-going towing
    vessel or an ocean-going barge or comparable towing vessel or barge
    operated on the Great Lakes.
      (8) The term ''noncontiguous trade'' means (i) trade between the
    contiguous forty-eight States on the one hand and Alaska, Hawaii,
    Puerto Rico and the insular territories and possessions of the
    United States on the other hand, and (ii) trade from any point in
    Alaska, Hawaii, Puerto Rico, and such territories and possessions
    to any other point in Alaska, Hawaii, Puerto Rico, and such
    territories and possessions.
      (9) The term ''Secretary'' means the Secretary of Commerce with
    respect to eligible or qualified vessels operated or to be operated
    in the fisheries of the United States, and the Secretary of
    Transportation with respect to all other vessels.
    (l) Records; reports; rules and regulations; termination of
        agreement upon changes in regulations with substantial effect
        on rights or obligations
      Each person maintaining a fund under this section shall keep such
    records and shall make such reports as the Secretary or the
    Secretary of the Treasury shall require.  The Secretary of the
    Treasury and the Secretary shall jointly prescribe all rules and
    regulations, not inconsistent with the foregoing provisions of this
    section, as may be necessary or appropriate to the determination of
    tax liability under this section.  If, after an agreement has been
    entered into under this section, a change is made either in the
    joint regulations or in the regulations prescribed by the Secretary
    under this section which could have a substantial effect on the
    rights or obligations of any person maintaining a fund under this
    section, such person may terminate such agreement.
    (m) Departmental reports and certification
      (1) In general
        For each calendar year, the Secretaries shall each provide the
      Secretary of the Treasury, within 120 days after the close of
      such calendar year, a written report with respect to those
      capital construction funds that are under their jurisdiction.
      (2) Contents of reports
        Each report shall set forth the name and taxpayer
      identification number of each person -
          (A) establishing a capital construction fund during such
        calendar year;
          (B) maintaining a capital construction fund as of the last
        day of such calendar year;
          (C) terminating a capital construction fund during such
        calendar year;
          (D) making any withdrawal from or deposit into (and the
        amounts thereof) a capital construction fund during such
        calendar year; or
          (E) with respect to which a determination has been made
        during such calendar year that such person has failed to
        fulfill a substantial obligation under any capital construction
        fund agreement to which such person is a party.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 607, 49 Stat. 2005; June
    23, 1938, ch. 600, Sec. 23-28, 52 Stat. 960, 961; Aug. 4, 1939, ch.
    417, Sec. 10, 53 Stat. 1185; July 17, 1952, ch. 939, Sec. 17-19, 66
    Stat. 764, 765; Pub. L. 85-637, Aug. 14, 1958, 72 Stat. 592; Pub.
    L. 86-518, Sec. 1, June 12, 1960, 74 Stat. 216; Pub. L. 87-45, Sec.
    6, May 27, 1961, 75 Stat. 91; Pub. L. 87-271, Sept. 21, 1961, 75
    Stat. 570; Pub. L. 91-469, Sec. 21(a), Oct. 21, 1970, 84 Stat.
    1026; Pub. L. 93-116, Oct. 1, 1973, 87 Stat. 421; Pub. L. 97-31,
    Sec. 12(97), Aug. 6, 1981, 95 Stat. 162; Pub. L. 99-514, Sec. 2,
    title II, Sec. 261(d), (e), Oct. 22, 1986, 100 Stat. 2095, 2214;
    Pub. L. 100-647, title I, Sec. 1002(m)(2), Nov. 10, 1988, 102 Stat.
    3382; Pub. L. 101-508, title XI, Sec. 11101(d)(7)(B), Nov. 5, 1990,
    104 Stat. 1388-405; Pub. L. 105-34, title III, Sec. 311(c)(2), Aug.
    5, 1997, 111 Stat. 835.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Internal Revenue Code of 1986, referred to in subsecs. (d)(1)
    and (h)(3), is classified generally to Title 26, Internal Revenue
    Code.
      Section 103, referred to in subsec. (e)(2)(D), which related to
    interest on certain governmental obligations was amended generally
    by Pub. L. 99-514, title XIII, Sec. 1301(a), Oct. 22, 1986, 100
    Stat. 2602, and as so amended relates to interest on State and
    local bonds.
 
-MISC2-
                                 AMENDMENTS
      1997 - Subsec. (h)(6)(A). Pub. L. 105-34 substituted ''20
    percent'' for ''28 percent'' in concluding provisions.
      1990 - Subsec. (h)(6)(A). Pub. L. 101-508 substituted ''section
    1(h)'' for ''section 1(j)''.
      1988 - Subsec. (h)(6)(A). Pub. L. 100-647 substituted ''section
    1(j)'' for ''section 1(i)''.
      1986 - Subsec. (b)(1)(A), (B). Pub. L. 99-514, Sec. 2,
    substituted ''Internal Revenue Code of 1986'' for ''Internal
    Revenue Code of 1954''.
      Subsec. (d)(1). Pub. L. 99-514, Sec. 2, substituted ''Internal
    Revenue Code of 1986'' for ''Internal Revenue Code of 1954''.
      Subsec. (d)(1)(A), (D). Pub. L. 99-514, Sec. 261(e)(1), (2),
    inserted ''and section 7518 of such Code''.
      Subsec. (e)(2)(C). Pub. L. 99-514, Sec. 261(e)(3), substituted
    ''the percentage applicable under section 243(a)(1) of the Internal
    Revenue Code of 1986'' for ''85 percent''.
      Pub. L. 99-514, Sec. 2, substituted ''section 243 of the Internal
    Revenue Code of 1986'' for ''section 243 of the Internal Revenue
    Code of 1954''.
      Subsec. (e)(4)(E). Pub. L. 99-514, Sec. 261(e)(4), amended
    subpar. (E) generally.  Prior to amendment, subpar. (E) read as
    follows: ''15 percent of any dividend referred to in paragraph
    (2)(C).''
      Subsec. (g)(3). Pub. L. 99-514, Sec. 261(e)(5), amended par. (3)
    generally.  Prior to amendment, par. (3) read as follows: ''If any
    portion of a qualified withdrawal for a vessel, barge, or container
    is made out of the capital gain account, the basis of such vessel,
    barge, or container shall be reduced by an amount equal to -
        ''(A) Five-eighths of such portion, in the case of a
      corporation (other than an electing small business corporation,
      as defined in section 1371 of the Internal Revenue Code of 1954,
      or
        ''(B) One-half of such portion, in the case of any other
      person.''
      Subsec. (h)(3). Pub. L. 99-514, Sec. 2, substituted ''Internal
    Revenue Code of 1986'' for ''Internal Revenue Code of 1954''.
      Subsec. (h)(5), (6). Pub. L. 99-514, Sec. 261(e)(6), added pars.
    (5) and (6).
      Subsec. (i)(1). Pub. L. 99-514, Sec. 2, substituted ''Internal
    Revenue Code of 1986'' for ''Internal Revenue Code of 1954''.
      Subsec. (m). Pub. L. 99-514, Sec. 261(d), added subsec. (m).
      1981 - Subsecs. (a), (c), (f), (h)(4). Pub. L. 97-31, Sec.
    12(97)(A), substituted ''Secretary'' for ''Secretary of Commerce''
    wherever appearing.
      Subsec. (k). Pub. L. 97-31, Sec. 12(97), substituted in pars.
    (2)(C) and (7) ''Secretary'' for ''Secretary of Commerce'' and
    added par. (9).
      Subsec. (l). Pub. L. 97-31, Sec. 12(97)(A), substituted
    ''Secretary'' for ''Secretary of Commerce'' wherever appearing.
      1973 - Subsec. (k)(8). Pub. L. 93-116 substituted ''(ii) trade
    from any point in Alaska, Hawaii, Puerto Rico, and such territories
    and possessions to any other point in Alaska, Hawaii, Puerto Rico,
    and such territories and possessions.'' for ''(ii) trade between
    Alaska, Hawaii, and Puerto Rico and such territories and
    possessions and (iii) trade between the islands of Hawaii.''
      1970 - Pub. L. 91-469 revised tax deferred reserve fund
    provisions generally, extended tax deferral privilege to vessels
    operated in nonsubsidized foreign trade, noncontiguous domestic
    trade, Great Lakes trade, and in fisheries, built in the United
    States, and documented under her laws, and substituted a new
    statutory framework consisting of subsecs. (a) to (l) for
    determination of tax status of deposits into and withdrawals from
    the fund for former subsecs. (a) to (h) and providing as follows:
      Subsec. (a), a capital construction fund, agreement rules,
    persons eligible, replacement, additional, or reconstructed vessels
    for prescribed trade and fishery operations, amount of deposits,
    annual limitation, and conditions and requirements for deposits and
    withdrawals, subsec. (a) formerly permitting a 10 percent
    distribution of net profits;
      Subsec. (b), ceiling on deposits, deposits of lessees, and
    definition of ''agreement vessel'', subsec. (b) formerly providing
    for a capital reserve fund, deposits, and allowable disbursements;
      Subsec. (c), investment requirements, depositories, fiduciary
    requirements, investment in interest-bearing certificates (formerly
    provided in former subsec. (d)(2) of this section), stock
    investments, including common stock treatment of preferred issues,
    percentage for domestic issues, listing and registration, prudent
    man acquisitions (provisions formerly covered in former subsec.
    (d)(3)(A) of this section), and value and percentage equilibrium,
    subsec. (c) formerly providing for creation of a special reserve
    fund, deposits, and allowable disbursements;
      Subsec. (d), nontaxability of deposits and eligible deposits,
    subsec. (d) formerly providing rules and regulations for
    administration of reserve funds and investment of funds, now
    covered in subsec. (c) of this section;
      Subsec. (e), capital account, capital gain account, and ordinary
    income account within the capital construction fund and limitation
    on losses, subsec. (e) formerly providing for withdrawals from
    capital reserve fund to meet needs due to operating losses;
      Subsec. (f), purposes of qualified withdrawals and nonqualified
    withdrawal treatment for nonfulfillment of substantial obligations,
    subsec. (f) formerly providing for title to reserve funds on
    termination of contract;
      Subsec. (g), tax treatment of qualified withdrawals and reduction
    of basis, subsec. (g) formerly providing for increase and transfer
    of reserve funds and interest on overpayment of taxes;
      Subsec. (h), tax treatment of nonqualified withdrawals, FIFO and
    LIFO bases, and interest rate, subsec. (h) formerly providing for
    exemption of reserve funds from taxation, in effect a tax deferral;
      Subsec. (i), corporate reorganizations and partnership changes;
      Subsec. (j), treatment of existing funds and relation of old to
    new funds;
      Subsec. (k), definitions; and
      Subsec. (l), records, reports, rules, and regulations, and
    termination of agreement upon changes in regulations with
    substantial effect on rights or obligations.
      1961 - Subsec. (b). Pub. L. 87-271 authorized the contractor,
    upon consent of the Secretary of Commerce, to pay amounts from the
    capital reserve fund for research, development, and design expenses
    for new and advanced ship design machinery and equipment, purchase
    of cargo containers delivered after June 30, 1959, payment of
    principal on indebtedness incurred for containers, and for
    reimbursing the contractor's general funds for expenditures for
    such purchases or payments, and required such cargo containers, to
    the extent paid for out of the capital reserve fund, to be treated
    as vessels for purpose of deposits and withdrawals from the fund,
    except that depreciation thereon shall be based on life expectancy
    used for such containers in determination of ''net earnings'' in
    subsec. (d)(1) of this section.
      Pub. L. 87-45 inserted ''and on cruises, if any, authorized under
    section 1183 of this Appendix'' after ''route or service approved
    by the Secretary'' in second par.
      1960 - Subsec. (b). Pub. L. 86-518 substituted ''twenty-five-year
    life expectancy'' for ''twenty-year life expectancy''.
      1958 - Subsec. (d). Pub. L. 85-637 designated first and second
    paragraphs as subdivisions (1) and (2), and added subdivision (3).
      1952 - Subsec. (b). Act July 17, 1952, Sec. 17, permitted
    recomputation of life-expectancy of a reconstructed or
    reconditioned vessel in use under an operating-differential subsidy
    contract, and provided for recomputation of depreciation changes.
      Subsec. (d). Act July 17, 1952, Sec. 18, substituted ''as
    provided for in section 1177(b) of this Appendix'' after ''life of
    the vessel'' for ''being twenty years''.
      Subsec. (g). Act July 17, 1952, Sec. 19, barred payment of
    interest by Government on overpayment of taxes resulting from
    voluntary deposits of earnings.
      1939 - Subsec. (c)(3). Act Aug. 4, 1939, permitted payment from
    the capital reserve fund, and authorized payment from other assets
    of the contractor if assets have not been repaid to the reserve
    funds, or if prepayments of amounts not due before one year after
    the date of termination of the contract have been made from the
    capital reserve funds.
      1938 - Subsec. (b). Act June 23, 1938, Sec. 23, 24, substituted
    ''insurance and indemnities'' for ''insurance indemnities'' in
    first par., and inserted provisions requiring deposit of proceeds
    of any sale or other disposition of a vessel in the capital reserve
    funds, and to permit the contractor to pay from the fund any sums
    owing but not yet due on notes secured by mortgages on subsidized
    vessels.
      Subsec. (c). Act June 23, 1938, Sec. 25, substituted ''If the
    profits, without regard to capital gains and capital losses, earned
    by the business of the subsidized vessels and services incident
    thereto exceed 10 per centum per annum and exceed the percentage of
    profits deposited in the capital reserve fund, as provided in
    subsection (b) of this section, the contractor shall deposit
    annually such excess profits in this reserve fund'' for ''In this
    reserve fund, the contractor shall deposit annually the profits
    earned by the business of the subsidized vessels and services
    incident thereto in excess of 10 per centum per annum and in excess
    of the percentage of profits deposited in the capital reserve fund,
    as provided in subsection (b) of this section'', in second par.
      Subsec. (c)(2). Act June 23, 1938, Sec. 26, substituted ''will be
    made up'' for ''will not be made up''.
      Subsecs. (f), (g). Act June 23, 1938, Sec. 27, added subsecs. (f)
    and (g). Former subsec. (f) redesignated (h).
      Subsec. (h). Act June 23, 1938, Sec. 28, redesignated former
    subsec. (f) as subsec. (h) and made earnings withdrawn from the
    special reserve fund taxable as if earned during the year of
    withdrawal from the fund.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Amendment by Pub. L. 105-34 applicable to taxable years ending
    after May 6, 1997, see section 311(d) of Pub. L. 105-34, set out as
    a note under section 1 of Title 26, Internal Revenue Code.
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by Pub. L. 101-508 applicable to taxable years
    beginning after Dec. 31, 1990, see section 11101(e) of Pub. L.
    101-508, set out as a note under section 1 of Title 26, Internal
    Revenue Code.
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    1019(a) of Pub. L. 100-647, set out as a note under section 1 of
    Title 26, Internal Revenue Code.
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by section 261(d), (e) of Pub. L. 99-514 applicable to
    taxable years beginning after Dec. 31, 1986, see section 261(g) of
    Pub. L. 99-514, set out as an Effective Date note under section
    7518 of Title 26, Internal Revenue Code.
                      EFFECTIVE DATE OF 1970 AMENDMENT
      Section 21(b) of Pub. L. 91-469 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply to
    taxable years beginning after December 31, 1969.''
                      EFFECTIVE DATE OF 1960 AMENDMENT
      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.
                 MERCHANT MARINE CAPITAL CONSTRUCTION FUNDS
      For coordination of application of Internal Revenue Code of 1986
    with capital construction program under this chapter, see section
    261(a) of Pub. L. 99-514, set out as a note under section 7518 of
    Title 26, Internal Revenue Code.
                     DEPOSITS INTO CAPITAL RESERVE FUND
      Pub. L. 92-507, Sec. 6, Oct. 19, 1972, 86 Stat. 917, provided
    that: ''Nothing in this Act (enacting this note and amending
    subchapter XI of this chapter) shall limit or affect the right of
    an obligor who maintains a capital reserve fund under section 607
    of the Merchant Marine Act, 1936 (this section) to make deposits of
    the proceeds of guaranteed obligations into such capital reserve
    fund as provided in subparagraph (c) of condition (6) of section
    1107 of the Merchant Marine Act, 1936 (subparagraph (c) of
    condition (6) of section 1276a of former Title 46, Shipping), as in
    effect prior to the effective date of this Act (Oct. 9, 1972).''
      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1177-1, 1185, 1244 of
    this Appendix; title 26 sections 56, 139, 543, 7518; title 42
    section 9141.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1177-1                       01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1177-1. Small fishing vessel construction reserves
 
-STATUTE-
      In addition to any other vessel which may be deemed an ''eligible
    vessel'' and a ''qualified vessel'' under section 1177 of this
    Appendix, a commercial fishing vessel under five net tons but not
    under two net tons -
        (1) which is constructed in the United States and, if
      reconstructed, is reconstructed in the United States;
        (2) which is owned by a citizen of the United States;
        (3) which has a home port in the United States; and
        (4) which is operated in the commercial fisheries of the United
      States,
    shall be considered to be an ''eligible vessel'' and a ''qualified
    vessel'' for the purposes of such section 1177 of this Appendix.
 
-SOURCE-
    (Pub. L. 94-455, title VIII, Sec. 807, Oct. 4, 1976, 90 Stat.
    1606.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1177a                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1177a. Deposits in special reserve fund; excusal; tax
        treatment
 
-STATUTE-
      On and after June 13, 1957, to the extent that the
    operating-differential subsidy accrual (computed on the basis of
    parity) is represented on the operator's books by a contingent
    accounts receivable item against the United States as a partial or
    complete offset to the recapture accrual, the operator (1) shall be
    excused from making deposits in the special reserve fund, and (2)
    as to the amount of such earnings the deposit of which is so
    excused shall be entitled to the same tax treatment as though it
    had been deposited in said special reserve fund.  To the extent
    that any amount paid to the operator by the United States reduces
    the balance in the operator's contingent receivable account against
    the United States, such amount shall forthwith be deposited in the
    special reserve fund of the operator.
 
-SOURCE-
    (Pub. L. 85-52, title I, Sec. 101, June 13, 1957, 71 Stat. 73.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1178                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1178. Sale or assignment of contract; consent of Secretary;
        purchaser subject to terms of contract; rescinding contract on
        transfer without consent
 
-STATUTE-
      No contract executed under this subchapter or any interest
    therein shall be sold, assigned, or transferred, either directly or
    indirectly, or through any reorganization, merger, or
    consolidation, nor shall any agreement or arrangement be made by
    the holder whereby the maintenance, management, or operation of the
    service, route, line, vessel, or vessels is to be performed by any
    other person, without the written consent of the Secretary of
    Transportation. If he consents to such agreement or arrangement,
    the agreement or arrangement shall make provision whereby the
    person undertaking such maintenance, management, or operation
    agrees to be bound by all of the provisions of the contract and of
    this chapter applicable thereto, and the rules and regulations
    prescribed pursuant to this chapter.  If the holder of any such
    contract shall voluntarily sell such contract or any interest
    therein, or make such assignment, transfer, agreement, or
    arrangement whereby the maintenance, management, or operation of
    the service, route, line, vessel, or vessels is to be performed by
    any other person, without the consent of the Secretary of
    Transportation, or if the operation of the service, route, line, or
    vessel, shall pass out of the direct control of the holder of such
    contract by reason of any voluntary or involuntary receivership or
    bankruptcy proceedings, the Secretary of Transportation shall have
    the right to modify or rescind such contract, without further
    liability thereon by the United States, and is vested with
    exclusive jurisdiction to determine the purposes for which any
    payments made by him under such contract shall be expended.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 608, 49 Stat. 2007; Pub. L.
    97-31, Sec. 12(98), Aug. 6, 1981, 95 Stat. 162.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''Secretary of Transportation''
    for ''Commission'' in three places and ''he'' and ''him'' for
    ''it''. For prior transfers of functions of the Commission, meaning
    the United States Maritime Commission, see Transfer of Functions
    note below.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1179                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1179. Withholding payment to defaulting contractor
 
-STATUTE-
      The Secretary of Transportation shall withhold the payment of
    operating-differential subsidy while any contractor therefor is in
    default in any payments due on account of construction-loan,
    ship-sales mortgage notes, or any other obligation due the United
    States, and shall apply the amount so withheld to the satisfaction
    of such debt.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 609, 49 Stat. 2007; June
    23, 1938, ch. 600, Sec. 29, 52 Stat. 961; Pub. L. 97-31, Sec.
    12(99), Aug. 6, 1981, 95 Stat. 162.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''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.
      1938 - Act June 23, 1938, repealed subsec. (b) which related to
    cancellation or modification of a contract where a contractor filed
    bankruptcy or was in default of payments.
 
-TRANS-
                           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.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1180                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1180. Vessels eligible to subsidy
 
-STATUTE-
      An operating-differential subsidy shall not be paid under
    authority of this subchapter on account of the operation of any
    vessel which does not meet the following requirements: (1) The
    vessel shall be of steel or other acceptable metal, shall be
    propelled by steam or motor, shall be as nearly fireproof as
    practicable, shall be built in a domestic yard or shall have been
    documented under the laws of the United States not later than
    February 1, 1928, or actually ordered and under construction for
    the account of citizens of the United States prior to such date,
    and shall be documented under the laws of the United States, during
    the entire life of the subsidy contract; and (2) if the vessel
    shall be constructed after June 29, 1936 it shall be either a
    vessel constructed according to plans and specifications approved
    by the Secretary of Transportation and the Secretary of the Navy,
    with particular reference to economical conversion into an
    auxiliary naval vessel, or a vessel approved by the Secretary of
    Transportation and the Navy Department as otherwise useful to the
    United States in time of national emergency.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 610, 49 Stat. 2007; Pub. L.
    97-31, Sec. 12(99), Aug. 6, 1981, 95 Stat. 162.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-31 substituted ''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.
 
-TRANS-
                           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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1152 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1181                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1181. Transfer of vessels to foreign registry on default of
        United States
 
-STATUTE-
    (a) Application; hearing; grant or denial
      The contractor, upon compliance with the provisions of this
    section, may transfer to foreign registry the vessels covered by
    any operating-differential subsidy contract held by him, in the
    event that the United States defaults upon such contract or cancels
    it without just cause.  Any contractor desiring to transfer any
    such vessel to foreign registry upon such default or cancelation
    shall file an application in writing with the Secretary of
    Transportation setting forth its contentions with respect to the
    lack of just cause or lawful grounds for such default or
    cancelation.  The Secretary of Transportation shall afford the
    contractor an opportunity for a hearing within twenty days after
    such contractor files written application therefor, and after the
    testimony, if any, in such hearing has been reduced to writing and
    filed with the Secretary of Transportation, he shall, within a
    reasonable time, grant or deny the application by order.
    (b) Appeal from denial of application
      If any such application is denied, the contractor may obtain a
    review of the order of denial in the United States Court of Appeals
    for the District of Columbia, by filing in such court, within
    twenty days after the entry of such order, a written petition
    praying that the order of the Secretary of Transportation be set
    aside.  A copy of such petition shall be forthwith transmitted by
    the clerk of the court to the Secretary of Transportation or any
    officer designated by him for that purpose, and thereupon the
    Secretary of Transportation shall file in the court the record upon
    which the order complained of was entered, as provided in section
    2112 of title 28. Upon the filing of such petition such court shall
    have exclusive jurisdiction to determine whether such cancelation
    or default was without just cause, and to affirm or set aside such
    order.  The judgment and decree of the court affirming or setting
    aside any such order of the Secretary of Transportation shall be
    final.
    (c) Effectiveness of transfer
      No transfer of vessels to foreign registry under this section
    shall become effective until any indebtedness to the Government or
    to any citizen of the United States, secured by such vessels, has
    been paid or discharged, and until after the expiration of ninety
    days from the date of final determination of the application or the
    appeal, if any.  Within such ninety-day period the Secretary of
    Transportation may (1) with the consent of the contractor purchase
    the vessels at cost to the contractor plus cost of capital
    improvements thereon, less 4 per centum annual depreciation upon
    such vessel, and the actual depreciated costs of capital
    improvements thereon, or (2) reinstate the contract and adjust or
    settle the default found by the Secretary of Transportation or the
    court to exist.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 611, as added June 23,
    1938, ch. 600, Sec. 30, 52 Stat. 961; amended Pub. L. 85-791, Sec.
    17, Aug. 28, 1958, 72 Stat. 947; Pub. L. 86-518, Sec. 4, June 12,
    1960, 74 Stat. 216; Pub. L. 97-31, Sec. 12(100), Aug. 6, 1981, 95
    Stat. 162.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Subsec. (a). Pub. L. 97-31, Sec. 12(100)(A), (B),
    substituted ''Secretary of Transportation'' for ''Commission'' in
    three places and ''he'' for ''it''. 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, Sec. 12(100)(A), (C), substituted
    ''Secretary of Transportation'' for ''Commission'' in three places
    and ''the Secretary of Transportation or any other officer
    designated by him for that purpose'' for ''any member of the
    Commission, or any officer thereof designated by the Commission for
    that purpose''.  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, Sec. 12(100)(A), substituted
    ''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.
      1960 - Subsec. (c). Pub. L. 86-518 substituted ''4 per centum''
    for ''5 per centum''.
      1958 - Subsec. (b). Pub. L. 85-791, in second sentence,
    substituted ''transmitted by the clerk of the court to'' for
    ''served upon'', struck out ''upon'' before ''any officer'',
    substituted ''file in the court'' for ''certify and file in the
    court a transcript of'', and inserted ''as provided in section 2112
    of title 28'', and which, in third sentence, substituted
    ''petition'' for ''transcript''.
                      EFFECTIVE DATE OF 1960 AMENDMENT
      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.
 
-TRANS-
                           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.
 
-MISC5-
      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.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 808 of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1183                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1183. Off-season cruises by passenger vessels
 
-STATUTE-
    (a) ''Passenger vessel'' defined
      In this section, ''passenger vessel'' means a vessel which (1) is
    of not less than ten thousand gross tons, and (2) has
    accommodations for not less than one hundred passengers.
    (b) Authorization for payment of subsidy
      If the Secretary of Transportation finds that the operation of
    any passenger vessel with respect to which a contract for the
    payment of an operating-differential subsidy has been entered into
    under section 1173 of this Appendix effective before January 2,
    1960, is not required for all of each year, in order to furnish
    adequate service on the service, route, or line covered by such
    contract, he may amend such contract to agree to pay an
    operating-differential subsidy for operation of the vessel (1) on
    such service, route, or line for some part or no part of each year,
    and (2) on cruises for all or part of each year if such specific
    cruise is approved by the Secretary of Transportation under
    subsection (e) of this section: Provided, however, That no such
    vessel may cruise for more than seven months of each year to ports
    which are regularly served by another United States-flag passenger
    vessel pursuant to an operating-differential subsidy contract.
    (c) Authorization for payment of subsidy to passenger vessels
        providing domestic service
      The Secretary of Transportation may authorize passenger vessels
    under operating-differential subsidy contracts to provide domestic
    service between specified ports while the vessels are on voyages in
    an essential service in the foreign commerce of the United States
    without reduction of operating-differential subsidy and the partial
    payback of construction-differential subsidy for operating in the
    domestic trades, if he finds that such domestic service will not
    result in a substantial deviation from the service, route, or line
    for which operating-differential subsidy is paid and will not
    adversely affect service on such service, route, or line.
    (d) Conditions for cruises or domestic service while on voyages in
        an essential service in foreign commerce
      When a vessel is being operated on cruises or has been authorized
    under this section to provide domestic passenger services while on
    voyages in an essential service in foreign commerce of the United
    States -
        (1) except as provided in subdivision (4) of this subsection,
      it shall carry no mail unless required by law, or cargo except
      passengers' luggage, except between those ports between which it
      may carry mail and cargo on its regular service assigned by
      contract;
        (2) it may not carry one-way passengers between those ports
      served by another United States carrier on its regular service
      assigned by contract, without the consent of such carrier, except
      between those ports between which it may carry one-way passengers
      on its own regular service assigned by contract;
        (3) it shall stop at other domestic ports only for the same
      time and the same purpose as is permitted with respect to a
      foreign-flag vessel which is carrying passengers who embarked at
      a domestic port, except that a cruise may end at a different port
      or coast from that where it began and may embark or disembark
      passengers at other domestic ports, either when not involving
      transportation in the domestic offshore trade in competition with
      a United States-flag passenger vessel offering berth service
      therein, or, if involving such transportation, with the consent
      of such carrier: Provided, however, That nothing herein shall be
      construed to repeal or modify section 1223(a) of this Appendix.
        (4) Any other provisions of this chapter or of the Shipping
      Act, 1916 (46 App. U.S.C. 801 et seq.), to the contrary
      notwithstanding, with the approval of the Secretary of
      Transportation, it may carry cargo and mail between ports to the
      extent such carriage is not in direct competition with a carrier
      offering United States-flag berth service between those ports,
      or, if such carriage is in direct competition with one or more
      carriers offering United States-flag berth service between such
      ports, with the consent of the next scheduled United States-flag
      carrier, which consent shall not be unreasonably withheld in the
      judgment of the Maritime Administrator.
    Section 1175(c) of this Appendix shall not apply to cruises
    authorized under this section.  Notwithstanding the applicable
    provisions of sections 1175(a) and 1156 of this Appendix requiring
    the reduction of operating differential subsidy and the partial
    payback of construction differential subsidy for operating in the
    domestic trades, such reduction of operating subsidy and partial
    payback of construction subsidy under sections 1175(a) and 1156,
    respectively, of this Appendix, shall not apply to cruises or
    domestic services authorized under this section.
    (e) Application for approval of cruise; notice to other American
        flag operators
      Upon the application of any operator for approval of a specific
    cruise, the Secretary of Transportation, after notice to all other
    American flag operators who may be affected and after affording all
    such operators an opportunity to submit written data, views or
    arguments, with or without opportunity to present the same orally
    in any manner, and after consideration of all relevant matter
    presented, shall approve the proposed cruise, if he determines that
    the proposed cruise will not substantially adversely affect an
    existing operator's service performed with passenger vessels of
    United States registry.  Such approval shall not be given more than
    two years in advance of the beginning of the cruise.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 613, as added Pub. L.
    87-45, Sec. 1, May 27, 1961, 75 Stat. 89; amended Pub. L. 90-358,
    Sec. 1, 2, June 22, 1968, 82 Stat. 248; Pub. L. 91-250, May 14,
    1970, 84 Stat. 215; Pub. L. 92-323, June 30, 1972, 86 Stat. 389;
    Pub. L. 97-31, Sec. 12(102), Aug. 6, 1981, 95 Stat. 162.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Shipping Act, 1916, referred to in subsec. (d)(4), is act
    Sept. 7, 1916, ch. 451, 39 Stat. 728, as amended, which is
    classified generally to chapter 23 (Sec. 801 et seq.) of this
    Appendix. For complete classification of this Act to the Code, see
    section 842 of this Appendix and Tables.
 
-MISC2-
                                 AMENDMENTS
      1981 - Subsec. (b). Pub. L. 97-31, Sec. 12(102)(A), substituted
    ''Secretary of Transportation'' for ''Secretary of Commerce''
    wherever appearing.
      Subsec. (c). Pub. L. 97-31, Sec. 12(102)(A), (B), substituted
    ''Secretary of Transportation'' for ''Secretary of Commerce'' and
    ''he'' for ''it''.
      Subsec. (d)(4). Pub. L. 97-31, Sec. 12(102)(A), substituted
    ''Secretary of Transportation'' for ''Secretary of Commerce''.
      Subsec. (e). Pub. L. 97-31, Sec. 12(102)(B), (C), substituted
    ''Secretary of Transportation'' for ''Board'' and ''he'' for
    ''it''. For prior transfers of functions of the Board, meaning the
    Federal Maritime Board, see Transfer of Functions note set out
    below.
      1972 - Subsec. (b). Pub. L. 92-323, Sec. 1(a), substituted
    provisions authorizing the Secretary of Commerce to permit
    passenger vehicles with respect to which an operating differential
    subsidy contract was entered into prior to January 2, 1960, to
    cruise for the whole year, for provisions permitting such passenger
    vessels to cruise off their essential trade routes for two-thirds
    of each year.
      Subsec. (d). Pub. L. 92-323, Sec. 1(b), added subd. (4) and
    qualified subd. (1) by making it subject to the provisions in subd.
    (4).
      Subsec. (e). Pub. L. 92-323, Sec. 1(c), changed phraseology.
      1970 - Subsec. (b). Pub. L. 91-250, Sec. 1(a), substituted
    ''(e)'' for ''(d)'' after ''under subsection''.
      Subsec. (c). Pub. L. 91-250, Sec. 1(b), substituted provision
    that Secretary of Commerce may authorize passenger vessels under
    operating-differential subsidy contracts to provide domestic
    service between specified ports under stated conditions, for
    provision stating conditions for operating passenger vessels on
    cruises.
      Subsec. (d). Pub. L. 91-250, Sec. 1(c), added subsec. (d). Former
    subsec. (d) redesignated (e).
      Subsec. (e). Pub. L. 91-250, Sec. 1(c), (d), redesignated former
    subsec. (d) as (e). Former subsec. (e), which defined seacoasts of
    the United States, was struck out.
      1968 - Subsec. (b). Pub. L. 90-358, Sec. 1, substituted reference
    to passenger vessels with respect to which a contract for the
    payment of an operating-differential subsidy has been entered into
    under section 1173 of this Appendix effective before January 2,
    1960, for reference to passenger vessels with respect to which an
    application for operating-differential subsidy has been filed under
    section 1171 of this Appendix, increased from four to eight months
    of each year the length of the period during which vessels may
    engage in cruises, and limited the cruising period each year to
    seven months in the case of ports regularly served by another
    United States-flag passenger vessel pursuant to an
    operating-differential subsidy contract.
      Subsecs. (d) to (f). Pub. L. 90-358, Sec. 2(a), (b), redesignated
    subsecs. (e) and (f) as (d) and (e), respectively.  Former subsec.
    (d), making provision for periodic review of operating differential
    subsidy contracts entered into under this subchapter and for
    amendment of such contracts, was repealed.
 
-TRANS-
                           TRANSFER OF FUNCTIONS
      For transfer of functions of Federal Maritime Board, see Reorg.
    Plan No. 7 of 1961, set out under section 1111 of this Appendix.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 865a, 1171, 1172, 1173,
    1176, 1183a of this Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1183a                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1183a. Off-season cruises additional to right of operator to
        make voyages on regular service, route, or line, including
        approved deviations
 
-STATUTE-
      The cruises authorized by section 1183 of this Appendix shall be
    in addition to and not in derogation of the right of an operator to
    make voyages on his regular service, route or line, including
    approved deviations within the general area of his essential
    service.  There shall be no adjustment of subsidy in the event of
    such deviations if they are without prejudice to the adequacy of
    service.
 
-SOURCE-
    (Pub. L. 87-45, Sec. 7, May 27, 1961, 75 Stat. 91.)
 
-COD-
                                CODIFICATION
      Section was not enacted as part of the Merchant Marine Act, 1936,
    which comprises this chapter.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1184                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1184. Suspension of operating differential subsidy contracts
        by operator recipients
 
-STATUTE-
      (a) Any operator receiving operating differential subsidy funds
    may elect, for all or a portion of its ships, to suspend its
    operating differential subsidy contract with all attendant
    statutory and contractual restrictions, except as to those
    pertaining to the domestic intercoastal or coastwise service,
    including any agreement providing for the replacement of vessels,
    if -
        (1) the vessel is less than ten years of age;
        (2) the suspension period is not less than twelve months;
        (3) the operator's financial condition is maintained at a level
      acceptable to the Secretary of Commerce; and
        (4) the owner agrees to pay to the Secretary, upon such terms
      and conditions as he may prescribe, an amount which bears the
      same proportion to the construction differential subsidy paid by
      the Secretary as the portion of the suspension period during
      which the vessel is operated in any preference trade from which a
      subsidized vessel would otherwise be excluded by law or contract
      bears to the entire economic life of the vessel.
      (b) Any operator making an election under this section is
    entitled to full reinstatement of the suspended contract on
    request.  The Secretary of Commerce may prescribe rules and
    regulations consistent with the purpose of this section.
 
-SOURCE-
    (June 29, 1936, ch. 858, Sec. 614, as added Pub. L. 97-35, title
    XVI, Sec. 1603, Aug. 13, 1981, 95 Stat. 751.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1185                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1185. Construction, reconstruction, or acquisition of vessels
        over five thousand deadweight tons in foreign shipyards;
        preconditions
 
-STATUTE-
      (a) The Secretary of Commerce may, until September 30, 1983,
    authorize an operator receiving or applying for operating
    differential subsidy under this subchapter to construct,
    reconstruct, or acquire its vessels of over five thousand
    deadweight tons in a foreign shipyard if the Secretary finds and
    certifies in writing that such operator's application for
    construction differential subsidy cannot be approved due to the
    unavailability of funds in the construction differential subsidy
    account.  Vessels constructed, reconstructed, or modified pursuant
    to this section shall be deemed to have been United States built
    for the purposes of this subchapter, section 1241(b) of this
    Appendix, and sections 3704 to 3709 of title 46: Provided, That the
    provisions of section 1177 of this Appendix shall not apply to
    vessels constructed, reconstructed, modified, or acquired pursuant
    to this section.
      (b) The provisions of this section shall be effective for fiscal
    year 1983 only if the President in his annual budget message for
    that year requests at least $100,000,000 in construction
    differential subsidy or proposes an alternate program that would
    create equivalent merchant shipbuilding activity in privately owned
    United States shipyards and the Secretary reports to Congress on
    the effect such action will have on the shipyard mobilization base
    at least thirty days prior to making the certification referred to
    in subsection (a) of this section.
 
-SOURCE-
    (June 29, 1936, ch. 858, Sec. 615, as added Pub. L. 97-35, title
    XVI, Sec. 1610, Aug. 13, 1981, 95 Stat. 753.)
 
-COD-
                                CODIFICATION
      In subsec. (a), ''sections 3704 to 3709 of title 46'' substituted
    for ''section 5(7) of the Port and Tanker Safety Act of 1978 (46
    U.S.C. 391a(7))'' on authority of Pub. L. 98-89, Sec. 2(b), Aug.
    26, 1983, 97 Stat. 598, section 1 of which enacted Title 46,
    Shipping.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1185a                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part A - Operating-Differential Subsidy Program
 
-HEAD-
    Sec. 1185a. Wind-up of program
 
-STATUTE-
    (a) In general
      After October 8, 1996, the Secretary of Transportation shall not
    enter into any new contract for operating-differential subsidy
    under this part.
    (b) Existing subsidy contracts
      Notwithstanding any other provision of this chapter, any
    operating-differential subsidy contract in effect under this
    subchapter on the day before October 8, 1996, shall continue in
    effect and terminate as set forth in the contract, unless
    voluntarily terminated at an earlier date by the parties (other
    than the United States Government) to the contract.
    (c) Essential service and port equity requirements
      The essential service requirements of section (FOOTNOTE 1)
    1171(a) and 1173(b) of this Appendix, and the provisions of
    sections 1175(c) and 1213(a) of this Appendix, shall not apply to
    the operating-differential subsidy program under this part
    effective upon the earlier of -
       (FOOTNOTE 1) So in original.  Probably should be ''sections''.
        (1) the date that a payment is made, under the Maritime
      Security Program established by part B of this subchapter to a
      contractor under that part who is not party to an
      operating-differential subsidy contract under this part, with the
      Secretary to cause notice of the date of such payment to be
      published in the Federal Register as soon as possible; or
        (2) with respect to a particular contractor under the
      operating-differential subsidy program, the date that contractor
      enters into a contract with the Secretary under the Maritime
      Security Program established by part B of this subchapter.
    (d) Transfer and registration of vessel
      (1) Notwithstanding any other provision of law, a vessel may be
    transferred and registered under an effective United
    States-controlled foreign flag if -
        (A) the operator of the vessel receives an
      operating-differential subsidy pursuant to a contract under this
      part which is in force on October 1, 1994, and the Secretary
      approves the replacement of such vessel with a comparable vessel,
      or
        (B) the vessel is covered by an operating agreement under part
      B of this subchapter, and the Secretary approves the replacement
      of such vessel with a comparable vessel for inclusion in the
      Maritime Security Fleet established under part B of this
      subchapter.
      (2) Any such vessel may be requisitioned by the Secretary of
    Transportation pursuant to section 1242 of this Appendix.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 616, as added Pub. L.
    104-239, Sec. 3(b), Oct. 8, 1996, 110 Stat. 3127.)
 
-CITE-
    46 USC APPENDIX - SHIPPING Part B - Maritime Security
                  Fleet Program                                  01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part B - Maritime Security Fleet Program
    .
 
-HEAD-
    Part B - Maritime Security Fleet Program
 
-SECREF-
                     PART REFERRED TO IN OTHER SECTIONS
      This part is referred to in sections 808, 1185a, 1222, 1704 of
    this Appendix; title 46 section 12102.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1187                         01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part B - Maritime Security Fleet Program
 
-HEAD-
    Sec. 1187. Establishment of Fleet
 
-STATUTE-
    (a) In general
      The Secretary of Transportation shall establish a fleet of
    active, militarily useful, privately-owned vessels to meet national
    defense and other security requirements and maintain a United
    States presence in international commercial shipping.  The Fleet
    shall consist of privately owned, United States-flag vessels for
    which there are in effect operating agreements under this part, and
    shall be known as the Maritime Security Fleet.
    (b) Vessel eligibility
      A vessel is eligible to be included in the Fleet if the vessel is
    self-propelled and -
        (1)(A) is operated by a person as an ocean common carrier;
        (B) whether in commercial service, on charter to the Department
      of Defense, or in other employment, is either -
          (i) a roll-on/roll-off vessel with a carrying capacity of at
        least 80,000 square feet or 500 twenty-foot equivalent units;
        or
          (ii) a lighter aboard ship vessel with a barge capacity of at
        least 75 barges; or
        (C) any other type of vessel that is determined by the
      Secretary to be suitable for use by the United States for
      national defense or military purposes in time of war or national
      emergency;
        (2)(A)(i) is a United States-documented vessel; and
        (ii) on the date an operating agreement covering the vessel is
      entered into under this part, is -
          (I) a LASH vessel that is 25 years of age or less; or
          (II) any other type of vessel that is 15 years of age or
        less;
      except that the Secretary of Transportation may waive the
      application of clause (ii) if the Secretary, in consultation with
      the Secretary of Defense, determines that the waiver is in the
      national interest; or
        (B) it is not a United States-documented vessel, but the owner
      of the vessel has demonstrated an intent to have the vessel
      documented under chapter 121 of title 46 if it is included in the
      Fleet, and the vessel will be less than 10 years of age on the
      date of that documentation;
        (3) the Secretary of Transportation determines that the vessel
      is necessary to maintain a United States presence in
      international commercial shipping or, after consultation with the
      Secretary of Defense, determines that the vessel is militarily
      useful for meeting the sealift needs of the United States with
      respect to national emergencies; and
        (4) at the time an operating agreement for the vessel is
      entered into under this part, the vessel will be eligible for
      documentation under chapter 121 of title 46.
 
-SOURCE-
    (June 29, 1936, ch. 858, title VI, Sec. 651, as added Pub. L.
    104-239, Sec. 2(2), Oct. 8, 1996, 110 Stat. 3118.)
 
-MISC1-
                                REGULATIONS
      Section 8 of Pub. L. 104-239 provided that:
      ''(a) In General. - The Secretary of Transportation may prescribe
    rules as necessary to carry out this Act (see Short Title of 1996
    Amendment note set out under section 1245 of this Appendix) and the
    amendments made by this Act.
      ''(b) Interim Rules. - The Secretary of Transportation may
    prescribe interim rules necessary to carry out this Act and the
    amendments made by this Act. For this purpose, the Secretary of
    Transportation is excepted from compliance with the notice and
    comment requirements of section 553 of title 5, United States Code.
    All rules prescribed under the authority of this subsection that
    are not earlier superseded by final rules shall expire no later
    than 270 days after the date of enactment of this Act (Oct. 8,
    1996).''
                              TRUST CHARTERERS
      Pub. L. 104-324, title XI, Sec. 1136(c), Oct. 19, 1996, 110 Stat.
    3987, provided that: ''Notwithstanding section 12102(d)(4) of title
    46, United States Code, as amended by this section, for purposes of
    subtitle B of title VI of the Merchant Marine Act, 1936 (46 App.
    U.S.C. 1187 et seq.) a vessel is deemed to be owned and operated by
    a citizen of the United States (as that term is used in that
    subtitle) if -
        ''(1) the person chartering the vessel from a trust under
      section 12102(d)(2) of that title is a citizen of the United
      States under section 2 of the Shipping Act, 1916 (46 App. U.S.C.
      802); and
        ''(2)(A) the vessel -
          ''(i) is delivered by a shipbuilder, following completion of
        construction, on or after May 1, 1995 and before January 31,
        1996; or
          ''(ii) is owned by a citizen of the United States under
        section 2 of the Shipping Act, 1916 on September 1, 1996, or is
        a replacement for such a vessel; or
        ''(B) payments have been made with respect to the vessel under
      subtitle B of title VI of the Merchant Marine Act, 1936 for at
      least 1 year.''
                           INDIRECT VESSEL OWNERS
      Pub. L. 104-324, title XI, Sec. 1136(d), Oct. 19, 1996, 110 Stat.
    3987, provided that: ''Notwithstanding any other provision of law,
    for purposes of subtitle B of title VI of the Merchant Marine Act,
    1936 (46 App. U.S.C. 1187 et seq.) the following vessels are deemed
    to be owned and operated by a citizen of the United States (as that
    term is used in that subtitle) if the vessels are owned, directly
    or indirectly, by a person that is a citizen of the United States
    under section 2 of the Shipping Act, 1916 (46 App. U.S.C. 802):
        ''(1) Any vessel constructed under a shipbuilding contract
      signed on December 21, 1995, and having hull number 3077, 3078,
      3079, or 3080.
        ''(2) Any vessel delivered by a shipbuilder, following
      completion of construction, on or after May 1, 1995, and before
      January 31, 1996.
        ''(3) Any vessel owned on September 1, 1996, by a person that
      is a citizen of the United States under section 2 of the Shipping
      Act, 1916, or a replacement for such a vessel.
        ''(4) Any vessel with respect to which payments have been made
      under subtitle B of title VI of the Merchant Marine Act, 1936 for
      at least 1 year.''
                              VESSEL STANDARDS
      Pub. L. 104-324, title XI, Sec. 1137, Oct. 19, 1996, 110 Stat.
    3988, provided that:
      ''(a) Certificate of Inspection. - A vessel used to provide
    transportation service as a common carrier which the Secretary of
    Transportation determines meets the criteria of section 651(b) of
    the Merchant Marine Act, 1936 (46 App. U.S.C. 1187(b)), but which
    on the date of enactment of this Act (Oct. 19, 1996) is not a
    documented vessel (as that term is defined in section 2101 of title
    46, United States Code), shall be eligible for a certificate of
    inspection if the Secretary determines that -
        ''(1) the vessel is classed by and designed in accordance with
      the rules of the American Bureau of Shipping or another
      classification society accepted by the Secretary;
        ''(2) the vessel complies with applicable international
      agreements and associated guidelines, as determined by the
      country in which the vessel was documented immediately before
      becoming a documented vessel (as defined in that section); and
        ''(3) that country has not been identified by the Secretary as
      inadequately enforcing international vessel regulations as to
      that vessel.
      ''(b) Continued Eligibility for Certificate. - Subsection (a)
    does not apply to a vessel after any date on which the vessel fails
    to comply with the applicable international agreements and
    associated guidelines referred to in subsection (a)(2).
      ''(c) Reliance on Classification Society. -
        ''(1) In general. - The Secretary may rely on a certification
      from the American Bureau of Shipping or, subject to paragraph
      (2), another classification society accepted by the Secretary to
      establish that a vessel is in compliance with the requirements of
      subsections (a) and (b).
        ''(2) Foreign classification society. - The Secretary may
      accept certification from a foreign classification society under
      paragraph (1) only -
          ''(A) to the extent that the government of the foreign
        country in which the society is headquartered provides access
        on a reciprocal basis to the American Bureau of Shipping; and
          ''(B) if the foreign classification society has offices and
        maintains records in the United States.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 808, 1187a, 1187c of this
    Appendix.
 
-CITE-
    46 USC APPENDIX - SHIPPING Sec. 1187a                        01/05/99
 
-EXPCITE-
    TITLE 46 - SHIPPING
    TITLE 46, APPENDIX - SHIPPING
    CHAPTER 27 - MERCHANT MARINE ACT, 1936
    SUBCHAPTER VI - VESSEL OPERATING ASSISTANCE PROGRAMS
    Part B - Maritime Security Fleet Program
 
-HEAD-
    Sec. 1187a. Operating agreements
 
-STATUTE-
    (a) In general
      The Secretary of Transportation shall require, as a condition of
    including any vessel in the Fleet, that the owner or operator of
    the vessel enter into an operating agreement with the Secretary
    under this section.  Notwithstanding subsection (g) of this
    section, the Secretary may enter into an operating agreement for,
    among other vessels that are eligi