CHAPTER 553 - PASSENGER AND CARGO PREFERENCES

Title 46 > CHAPTER 553

Sections (18)

§ 55301 Report on administration of programs by other Federal departments and agencies

(a) In General.— The Administrator of the Maritime Administration shall annually submit to Congress a report on the administration by— the Department of Defense of section 2631 of title 10 ; and other Federal departments and agencies of programs the Administrator determines are subject to section 55305 of this title .

(b) Contents.— Each annual report required under subsection (a) shall include, for each Federal department or agency that administers a program covered by the report— the gross tonnage of cargo (equipment, materials, or agricultural products), expressed by type of cargo, transported on United States flag vessels as compared to on foreign vessels; and the total number of United States flag vessels and total number of foreign vessels contracted by each department or agency.

(c) Agency Reporting Requirements.— Not later than January 31 of each year, the head of each Federal department or agency that administers a program covered by a report required under subsection (a) shall submit to the Administrator of the Maritime Administration the information described in subsection (b) for that department or agency.

§ 55302 Transportation of United States Government personnel

(a) In General.— An officer or employee of the United States Government traveling by sea on official business overseas or to or from a territory or possession of the United States shall travel and transport personal effects on a vessel documented under the laws of the United Sates if such a vessel is available, unless the necessity of the mission requires the use of a foreign vessel.

(b) Regulations.— The Administrator of General Services shall prescribe regulations under which agencies may not pay for or reimburse an officer or employee for travel or transportation expenses incurred on a foreign vessel in the absence of satisfactory proof of the necessity of using the vessel.

§ 55303 Motor vehicles owned by United States Government personnel

Notwithstanding any other law, privately-owned American shipping services may be used to transport motor vehicles owned by personnel of the United States Government whenever transportation of those vehicles at Government expense is otherwise authorized by law. ( Pub. L. 109–304, § 8(c) , Oct. 6, 2006 , 120 Stat. 1642 .)

§ 55304 Exports financed by the United States Government

It is the sense of Congress that any loans made by an instrumentality of the United States Government to foster the exporting of agricultural or other products shall provide that the products may be transported only on vessels of the United States unless, as to any or all of those products, the Secretary of Transportation, after investigation, certifies to the instrumentality that vessels of the United States are not available in sufficient number, in sufficient tonnage capacity, on necessary schedules, or at reasonable rates. ( Pub. L. 109–304, § 8(c) , Oct. 6, 2006 , 120 Stat. 1642 .)

§ 55305 Cargoes procured, furnished, or financed by the United States Government

(a) Minimum Tonnage.— When the United States Government procures, contracts for, or otherwise obtains for its own account, or furnishes to or for the account of a foreign country, organization, or persons without provision for reimbursement, any equipment, materials, or commodities, or provides financing in any way with Federal funds for the account of any persons unless otherwise exempted, within or without the United States, or advances funds or credits, or guarantees the convertibility of foreign currencies in connection with the furnishing or obtaining of the equipment, materials, or commodities, the appropriate agencies shall take steps necessary and practicable to ensure that at least 50 percent of the gross tonnage of the equipment, materials, or commodities (computed separately for dry bulk carriers, dry cargo liners, and tankers) which may be transported on ocean vessels is transported on privately-owned commercial vessels of the United States, as provided under subsection (b), to the extent those vessels are available at fair and reasonable rates for commercial vessels of the United States, in a manner that will ensure a fair and reasonable participation of commercial vessels of the United States in those cargoes by geographic areas.

(b) Eligible Vessels.— To be eligible to carry cargo as provided under subsection (a), a privately-owned commercial vessel shall be documented under the laws of the United States— for not less than three years; or after January 1, 2030 , for less than three years, if the vessel owner signs an agreement with the Secretary providing that— the vessel shall remain documented under the laws of the United States for not less than three years; and the vessel owner shall, upon request of the Secretary, agree to enroll the vessel in an emergency preparedness agreement or voluntary agreement authorized under section 708 of the Defense Production Act of 1950 ( 50 U.S.C. 4558 ) and shall ensure the vessel remains so enrolled until the vessel ceases to be documented under the laws of the United States.

(c) Violation of Agreement.— A vessel under an agreement executed pursuant to subsection (b)(2) may be seized by, and forfeited to, the United States if, in violation of that agreement— the vessel owner places the vessel under foreign registry; or a person operates the vessel under the authority of a foreign country.

(d) Waivers.— Notwithstanding any other provision of law, when the President, the Secretary of Defense, or the Secretary of Transportation declares the existence of an emergency justifying a temporary waiver of this section or section 55314 of this title , the President, the Secretary of Defense, or the Secretary of Transportation, following a determination by the Maritime Administrator, acting in the Administrator’s capacity as Director, National Shipping Authority, of the non-availability of qualified United States flag capacity at fair and reasonable rates for commercial vessels of the United States to meet the requirements of this section or section 55314 of this title , may waive compliance with such section to the extent, in the manner, and on the terms the Maritime Administrator, acting in such capacity, prescribes, and no other waivers of the requirements of this section or section 55314 of this title shall be authorized. Subject to subparagraphs (B) and (C), a waiver issued under this subsection shall be for a period of not more than 60 days. Upon termination of the period of a waiver issued under this subsection, the Maritime Administrator may extend the waiver for an additional period of not more than 30 days, if the Maritime Administrator makes the determinations described in paragraph (1). The aggregate duration of the period of all waivers and extensions of waivers under this subsection with respect to any one set of events shall not exceed three months in a fiscal year. The Maritime Administrator shall— for each determination referred to in paragraph (1), identify any actions that could be taken to enable qualified United States flag capacity to meet the requirements of this section or section 55314 at fair and reasonable rates for commercial vessels of the United States; provide notice of each determination referred to in paragraph (1) to the Secretary of Transportation and, as applicable, the President or the Secretary of Defense; and publish each determination referred to in paragraph (1)— on the website of the Maritime Administration not later than 24 hours after notice of the determination is provided to the Secretary of Transportation; and in the Federal Register. The Maritime Administrator shall notify— the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives of— any request for a waiver (or an extension thereof) made by the Secretary of Transportation of this section or section 55314(a) 1 of this title by not later than 72 hours after receiving such a request; and the issuance of any such waiver (or an extension thereof), and why such waiver or extension was necessary, by not later than 72 hours after such issuance; and the Committee on Commerce, Science, and Transportation and the Committee on Armed Services of the Senate and the Committee on Transportation and Infrastructure and the Committee on Armed Services of the House of Representatives of— any request for a waiver (or an extension thereof) made by the Secretary of Defense of this section or section 55314(a) 1 of this title by not later than 72 hours after receiving such a request; and the issuance of any such waiver (or an extension thereof), and why such waiver or extension was necessary, by not later than 72 hours after such issuance.

(e) Programs of Other Agencies.— Each department or agency that has responsibility for a program under this section shall administer that program with respect to this section under regulations and guidance issued by the Secretary of Transportation. The Secretary, after consulting with the department or agency or organization or person involved, shall have the sole responsibility for determining if a program is subject to the requirements of this section. The Secretary— shall conduct an annual review of the administration of programs determined pursuant to paragraph (1) as subject to the requirements of this section and annually submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on the administration of such programs; may direct agencies to require the transportation on United States-flagged vessels of cargo shipments not otherwise subject to this section in equivalent amounts to cargo determined to have been shipped on foreign carriers in violation of this section; may impose on any person that violates this section, or a regulation prescribed under this section, a civil penalty of not more than $25,000 for each violation willfully and knowingly committed, with each day of a continuing violation following the date of shipment to be a separate violation; and may take other measures as appropriate under the Federal Acquisition Regulations issued pursuant to section 25(c)(1) 1 of the Office of Federal Procurement Policy Act ( 41 U.S.C. 1303(a)(1) ) or contract with respect to each violation.

(f) Security of Government-Impelled Cargo.— In order to ensure the safety of vessels and crewmembers transporting equipment, materials, or commodities under this section, the Secretary of Transportation shall direct each department or agency (except the Department of Defense), when responsible for the carriage of such equipment, materials, or commodities, to reimburse, subject to the availability of appropriations, the owners or operators of vessels of the United States carrying such equipment, materials, or commodities for the cost of providing armed personnel aboard such vessels if the vessels are transiting high-risk waters. In this subsection, the term “high-risk waters” means waters so designated by the Commandant of the Coast Guard in the maritime security directive issued by the Commandant and in effect on the date on which an applicable voyage begins, if the Secretary of Transportation— determines that an act of piracy occurred in the 12-month period preceding the date the voyage begins; or in such period, issued an advisory warning that an act of piracy is possible in such waters.

§ 55311 Findings and purposes

(a) Findings.— Congress finds that— a productive and healthy agricultural industry and a strong and active United States maritime industry are vitally important to the economic well-being and security of the United States; both industries must compete in international markets increasingly dominated by foreign trade barriers and the subsidization practices of foreign governments; and increased agricultural exports and the use of merchant vessels of the United States contribute positively to the United States balance of trade and generate employment opportunities in the United States.

(b) Purposes.— The purposes of this subchapter are to— enable the Secretary of Agriculture to plan export programs effectively, by clarifying the ocean transportation requirements applicable to those programs; take immediate and positive steps to promote the growth of the cargo-carrying capacity of the United States merchant marine; expand international trade in United States agricultural commodities and products and develop, maintain, and expand markets for United States agricultural exports; improve the efficiency of administration of both the commodity purchasing and selling activities and the ocean transportation activities associated with export programs sponsored by the Secretary; stimulate and promote the agricultural and maritime industries of the United States and encourage cooperative efforts by both industries to address their common problems; and provide for the appropriate disposition of these findings and purposes.

§ 55312 Determining prevailing world market price

(a) Agricultural Commodities and Products.— The prevailing world market price for agricultural commodities or their products shall be determined under this subchapter under procedures prescribed by the Secretary of Agriculture. The Secretary shall prescribe the procedures by regulation, with notice and opportunity for public comment under section 553 of title 5 .

(b) Services and Non-Agricultural Commodities and Products.— If a determination of the prevailing world market price of any other type of materials, goods, equipment, or service is required to determine whether a barter or exchange transaction is subject to section 55314(b)(6) or (7) of this title, the determination shall be made by the Secretary of Agriculture in consultation with the heads of other appropriate agencies.

§ 55313 Exemption of certain agricultural exports from cargo preference provisions

Sections 55304 and 55305 of this title do not apply to export activities of the Secretary of Agriculture or the Commodity Credit Corporation under which— agricultural commodities or their products acquired by the Corporation are made available to United States exporters, users, processors, or foreign purchasers for the purpose of developing, maintaining, or expanding export markets for United States agricultural commodities or their products at prevailing world market prices; payments are made available to United States exporters, users, or processors or, except as provided in section 55314 of this title , cash grants are made available to foreign purchasers, for the purpose described in paragraph (1); commercial credit guarantees are blended with direct credits from the Corporation to reduce the effective rate of interest on export sales of United States agricultural commodities or their products; credit or credit guarantees for not more than 3 years are extended by the Corporation to finance or guarantee export sales of United States agricultural commodities or their products; or agricultural commodities or their products owned or controlled by or under loan from the Corporation are exchanged or bartered for materials, goods, equipment, or services at least equal in value to the agricultural commodities or their products for which they are exchanged or bartered (determined on the basis of prevailing world market prices at the time of the exchange or barter), but this paragraph does not exempt from the cargo preference provisions referred to in section 55314(b) of this title any requirement otherwise applicable to the materials, goods, equipment, or services imported under the transaction. ( Pub. L. 109–304, § 8(c) , Oct. 6, 2006 , 120 Stat. 1644 .)

§ 55314 Transportation requirements for certain exports sponsored by the Secretary of Agriculture

([(a) Repealed. Pub. L. 112–141, div. F, title I, § 100124(a)(1) , July 6, 2012 , 126 Stat. 915 .]

(b) Applicable Export Activity.— The activities specified in this subsection are export activities (except inspection or weighing activities, other activities carried out for health or safety, or technical assistance provided in the handling of commercial transactions) of the Secretary of Agriculture or the Commodity Credit Corporation— carried out under the Food for Peace Act ( 7 U.S.C. 1691 et seq.); carried out under section 416 of the Agricultural Act of 1949 ( 7 U.S.C. 1431 ); carried out under the Bill Emerson Humanitarian Trust Act ( 7 U.S.C. 1736f–1 ); under which agricultural commodities or their products are— donated through foreign governments or private or public agencies, including intergovernmental organizations; or sold for foreign currencies or for dollars on credit terms of more than 10 years; under which agricultural commodities or their products are made available for emergency food relief at less than prevailing world market prices; under which a cash grant is made directly or through an intermediary to a foreign purchaser to enable the purchaser to obtain United States agricultural commodities or their products in an amount greater than the difference between the prevailing world market price and the United States market price, free along side vessel at a United States port; or under which agricultural commodities owned or controlled by or under loan from the Corporation are exchanged or bartered for materials, goods, equipment, or services produced in foreign countries, except export activities described in section 55313(5) of this title .

([(c) Repealed. Pub. L. 112–141, div. F, title I, § 100124(a)(1) , July 6, 2012 , 126 Stat. 915 .]

§ 55315 Minimum tonnage

(a) Definition.— In this section, the term “base period” means the 5-year period running from the sixth through the second prior fiscal years.

(b) Requirement.— For each fiscal year, the minimum quantity of agricultural commodities to be exported under programs specified in section 55314(b) of this title is the average of the tonnage exported under those programs during the base period, discarding the high and low years.

(c) Waivers.— The President may waive the minimum quantity for a fiscal year under this section if the President determines and reports to Congress, together with reasons, that the quantity cannot be used effectively for the purposes of those programs or, based on a certification by the Secretary of Agriculture, that the commodities are not available for reasons that include the unavailability of funds.

[§§ 55316, 55317 Repealed. Pub. L. 113–67, div. A, title VI, § 602(a), Dec. 26, 2013, 127 Stat. 1188]

§ 55318 Effect on other law

This subchapter does not affect chapter 5 of title 5. ( Pub. L. 109–304, § 8(c) , Oct. 6, 2006 , 120 Stat. 1648 .)

§ 55331 Definitions

In this subchapter: The term “American Great Lakes vessel” means a vessel so designated under section 55332 of this title , but only during the period the designation is in effect. The term “Great Lakes” means Lake Superior, Lake Michigan, Lake Huron, Lake Erie, Lake Ontario, the Saint Lawrence River west of Saint Regis, New York, and their connecting and tributary waters. The term “Great Lakes shipping season” means the period each year during which the Saint Lawrence Seaway is open for navigation by vessels, as declared by the Great Lakes St. Lawrence Seaway Development Corporation. ( Pub. L. 109–304, § 8(c) , Oct. 6, 2006 , 120 Stat. 1648 ; Pub. L. 116–260, div. AA, title V, § 512(c)(6)(E) , Dec. 27, 2020 , 134 Stat. 2757 .)

§ 55332 Designating American Great Lakes vessels

(a) Designations.— The Secretary of Transportation shall designate a vessel as an American Great Lakes vessel if— an application for designation is submitted to the Secretary under regulations prescribed by the Secretary; the vessel is documented under the laws of the United States; the vessel, on the effective date of the designation, is— at least 1, but not more than 6, years old; or at least 1, but not more than 11, years old if the Secretary finds that suitable vessels are not available to provide the type of service for which the vessel will be used after the designation; the vessel has not previously been designated as an American Great Lakes vessel; and the owner makes an agreement as provided under subsection (b).

(b) Agreements.— A vessel may be designated as an American Great Lakes vessel only if the person that will be the owner of the vessel at the time of the designation makes an agreement with the Secretary providing that if the Secretary determines that the vessel is necessary to the defense of the United States, the United States Government will have an exclusive right, during the 120-day period following the date of a revocation of the designation under section 55335 of this title , to purchase the vessel for a price equal to the greater of— the approximate world market value of the vessel; or the cost of the vessel to the owner less a reasonable amount for depreciation.

(c) Certain Foreign Documentation and Sale Not Prohibited.— Notwithstanding any other law, if the Government does not exercise its right of purchase under an agreement under subsection (b), the owner of the vessel is not prohibited from— documenting the vessel under the laws of a foreign country; or selling the vessel to a person not a citizen of the United States.

(d) Regulations.— The Secretary shall prescribe regulations establishing requirements for submitting applications under this section.

§ 55333 Exemption from restriction on transporting certain cargo

The 3-year documentation requirement of section 55305(a) of this title does not apply to a vessel designated as an American Great Lakes vessel during the period of its designation. ( Pub. L. 109–304, § 8(c) , Oct. 6, 2006 , 120 Stat. 1649 .)

§ 55334 Restrictions on operations

(a) Prohibitions.— Except as provided in subsection (b), an American Great Lakes vessel may not be used to— engage in trade— from a port in the United States that is not located on the Great Lakes; or between ports in the United States; transport bulk cargo (as defined in section 40102 of this title ) that is subject to section 55305 or 55314 of this title or section 2631 of title 10 ; or provide a service (except ocean freight service) as— a contract carrier; or a common carrier on a fixed advertised schedule offering frequent sailings at regular intervals in the foreign trade of the United States.

(b) Off-Season Exception.— An American Great Lakes vessel may be used for not more than 90 days during any 12-month period to engage in trade prohibited by subsection (a)(1)(A), except during the Great Lakes shipping season.

§ 55335 Revocations and terminations of designations

(a) Revocations.— After notice and an opportunity for a hearing, the Secretary of Transportation may revoke a designation of a vessel as an American Great Lakes vessel if the Secretary finds that— the vessel does not meet a requirement for the designation; the vessel has been operated in violation of this subchapter; or the owner or operator of the vessel has violated an agreement made under section 55332(b) of this title .

(b) Terminations.— On petition and a showing of good cause by the owner of a vessel, the Secretary may terminate the designation of a vessel as an American Great Lakes vessel. The Secretary may impose conditions in a termination order to prevent significant adverse effects on other operators of vessels of the United States.

§ 55336 Civil penalty

After notice and an opportunity for a hearing, the Secretary of Transportation may impose a civil penalty of not more than $1,000,000 on the owner of an American Great Lakes vessel for any act for which the designation may be revoked under section 55335 of this title . ( Pub. L. 109–304, § 8(c) , Oct. 6, 2006 , 120 Stat. 1650 .)