46 USC 55305 Cargoes Procured, Furnished, or Financed by the US Government

Page 483

TITLE 46—SHIPPING
Executive Documents
EXEMPTIONS

Functions authorized by Foreign Assistance Act of
1961 as exempt, see Ex. Ord. No. 11223, eff. May 12, 1965,
30 F.R. 6635, set out under section 2393 of Title 22, Foreign Relations and Intercourse.

§ 55303. Motor vehicles owned by United States
Government personnel
Notwithstanding any other law, privatelyowned 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.)
HISTORICAL AND REVISION NOTES
Revised
Section
55303 ..........

Source (U.S. Code)
46 App.:1241(c).

Source (Statutes at Large)
June 29, 1936, ch. 858, title
IX, § 901(c), as added May
28, 1956, ch. 325, 70 Stat.
187.

§ 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.)
HISTORICAL AND REVISION NOTES
Revised
Section
55304 ..........

Source (U.S. Code)
46 App.:1241–1.

Source (Statutes at Large)
Mar. 26, 1934, ch. 90, 48 Stat.
500; June 29, 1936, ch. 858,
§ 204, 49 Stat. 1987; Pub. L.
97–31, § 12(127), Aug. 6, 1981,
95 Stat. 165.

This section codifies the Joint Resolution of March
26, 1934 (ch. 90, 48 Stat. 500) (also commonly known as
Public Resolution 17). The codification of this provision
is not intended to change its status as a ‘‘Sense of Congress’’ provision in any way. The words ‘‘Reconstruction Finance Corporation or’’ are omitted as obsolete
because the Reconstruction Finance Corporation was
abolished by section 6 of Reorganization Plan No. 1 of
1957 (5 App. U.S.C.).

§ 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 with-

§ 55305

out 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—
(1) for not less than three years; or
(2) after January 1, 2030, for less than three
years, if the vessel owner signs an agreement
with the Secretary providing that—
(A) the vessel shall remain documented
under the laws of the United States for not
less than three years; and
(B) 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—
(1) the vessel owner places the vessel under
foreign registry; or
(2) a person operates the vessel under the authority of a foreign country.
(d) WAIVERS.—(1) 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.

§ 55305

TITLE 46—SHIPPING

(2)(A) Subject to subparagraphs (B) and (C), a
waiver issued under this subsection shall be for
a period of not more than 60 days.
(B) 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).
(C) 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.
(3) The Maritime Administrator shall—
(A) 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;
(B) 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
(C) publish each determination referred to in
paragraph (1)—
(i) 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
(ii) in the Federal Register.
(4) The Maritime Administrator shall notify—
(A) the Committee on Commerce, Science,
and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House of Representatives of—
(i) 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
(ii) 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
(B) 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—
(i) 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
(ii) 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.—
(1) 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 depart1 See

References in Text note below.

Page 484

ment 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.
(2) The Secretary—
(A) 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;
(B) 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;
(C) 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
(D) 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.
OF
GOVERNMENT-IMPELLED
(f)
SECURITY
CARGO.—
(1) 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 highrisk waters.
(2) 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—
(A) determines that an act of piracy occurred in the 12-month period preceding the
date the voyage begins; or
(B) in such period, issued an advisory
warning that an act of piracy is possible in
such waters.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1642;
Pub. L. 110–417, div. C, title XXXV, § 3511(a), (b),
Oct. 14, 2008, 122 Stat. 4769; Pub. L. 112–213, title
V, § 503, Dec. 20, 2012, 126 Stat. 1575; Pub. L.
113–281, title III, § 306, Dec. 18, 2014, 128 Stat. 3044;
Pub. L. 115–232, div. C, title XXXV, § 3546(s), Aug.
13, 2018, 132 Stat. 2327; Pub. L. 117–263, div. C,

Page 485

title XXXV, § 3502(b), Dec. 23, 2022, 136 Stat. 3065;
Pub. L. 118–31, div. C, title XXXV, § 3531(a), Dec.
22, 2023, 137 Stat. 825.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

55305(a) ......

46 App.:1241(b)(1)
(2d, last provisos).

June 29, 1936, ch. 858, title
IX, § 901(b), as added Aug.
26, 1954, ch. 936, 68 Stat.
832; Pub. L. 87–266, Sept.
21, 1961, 75 Stat. 565; Pub.
L. 91–469, § 27, Oct. 21, 1970,
84 Stat. 1034; Pub. L. 97–31,
§ 12(126), Aug. 6, 1981, 95
Stat. 165.

55305(b) ......

46 App.:1241(b)(1)
(words before 1st
proviso).
46 App.:1241(b)(1)
(1st proviso).
46 App.:1241(b)(2).

55305(c) ......
55305(d) ......

§ 55311

TITLE 46—SHIPPING

In this section, the words ‘‘commercial vessels of the
United States’’ are substituted for ‘‘United States-flag
commercial vessels’’ for consistency in the revised
title.
In subsection (a), the words ‘‘the provisions of this
subsection shall not apply to cargoes carried in the vessels of the Panama Canal Company’’ are omitted as obsolete. The words ‘‘Nothing herein shall repeal or otherwise modify the provisions of section 1241–1 of this
Appendix’’ are omitted as unnecessary. The last proviso
in 46 App. U.S.C. 1241(b)(1) is omitted as obsolete.
Editorial Notes
REFERENCES IN TEXT
Section 55314(a), referred to in subsec. (d)(4)(A)(i),
(B)(i), was repealed by Pub. L. 112–141, div. F, title I,
§ 100124(a)(1), July 6, 2012, 126 Stat. 915.
Section 25(c)(1) of the Office of Federal Procurement
Policy Act, referred to in subsec. (e)(2)(D), was classified to section 421(c)(1) of former Title 41, Public Contracts, and was repealed and restated as section
1303(a)(1) of Title 41, Public Contracts, by Pub. L.
111–350, §§ 3, 7(b), Jan. 4, 2011, 124 Stat. 3677, 3855. For
disposition of sections of former Title 41, see Disposition Table preceding section 101 of Title 41.
AMENDMENTS
2023—Subsec. (a). Pub. L. 118–31, § 3531(a)(1), (2)(A), (3),
redesignated subsec. (b) as (a), substituted ‘‘privatelyowned commercial vessels of the United States, as provided under subsection (b),’’ for ‘‘privately-owned commercial vessels of the United States,’’, and struck out
former subsec. (a). Prior to amendment, text of subsec.
(a) read as follows: ‘‘In this section, the term ‘privately-owned commercial vessel of the United States’
does not include a vessel that, after September 21, 1961,
was built or rebuilt outside the United States or documented under the laws of a foreign country, until the
vessel has been documented under the laws of the
United States for at least 3 years.’’
Subsecs. (b), (c). Pub. L. 118–31, § 3531(a)(4), added subsecs. (b) and (c). Former subsecs. (b) and (c) redesignated (a) and (d), respectively.
Subsec. (d). Pub. L. 118–31, § 3531(a)(2)(B), (5), redesignated subsec. (c) as (d), struck it out, and added a new
subsec. (d). Prior to amendment, text read as follows:
‘‘The President, the Secretary of Defense, or Congress
(by concurrent resolution or otherwise) may waive this
section temporarily by—
‘‘(1) declaring the existence of an emergency justifying a waiver; and
‘‘(2) notifying the appropriate agencies of the waiver.’’
Former subsec. (d) redesignated (e).
Subsecs. (e), (f). Pub. L. 118–31, § 3531(a)(2)(B), redesignated subsecs. (d) and (e) as (e) and (f), respectively.
2022—Subsec. (d)(2)(A). Pub. L. 117–263 inserted ‘‘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’’ after ‘‘section’’.
2018—Subsec. (d)(2)(D). Pub. L. 115–232 substituted
‘‘1303(a)(1))’’ for ‘‘421(c)(1)’’.
2014—Subsec. (e)(1). Pub. L. 113–281, § 306(1), substituted ‘‘reimburse, subject to the availability of appropriations, the owners or operators of vessels’’ for
‘‘provide armed personnel aboard vessels’’ and ‘‘commodities for the cost of providing armed personnel
aboard such vessels’’ for ‘‘commodities’’.
Subsec. (e)(2), (3). Pub. L. 113–281, § 306(2), added par.
(2) and struck out former pars. (2) and (3) which read as
follows:
‘‘(2) The Secretary of Transportation shall direct
each department or agency responsible to provide
armed personnel under paragraph (1) to reimburse, subject to the availability of appropriations, the owners or
operators of applicable vessels for the cost of providing
armed personnel.
‘‘(3) In this subsection, the term ‘high-risk waters’
means waters so designated by the Commandant of the
Coast Guard in the Port Security Advisory in effect on
the date on which an applicable voyage begins.’’
2012—Subsec. (e). Pub. L. 112–213 added subsec. (e).
2008—Subsec. (b). Pub. L. 110–417, § 3511(a), substituted
‘‘foreign country, organization, or persons’’ for ‘‘foreign country’’, ‘‘commodities, or provides financing in
any way with Federal funds for the account of any persons unless otherwise exempted, within’’ for ‘‘commodities, within’’, and ‘‘furnishing or obtaining’’ for ‘‘furnishing’’.
Subsec. (d). Pub. L. 110–417, § 3511(b), reenacted heading without change and amended text generally. Prior
to amendment, text read as follows: ‘‘An agency having
responsibility under this section shall administer its
programs with respect to this section under regulations
prescribed by the Secretary of Transportation. The
Secretary shall review the administration of those programs and report annually to Congress on their administration.’’
Statutory Notes and Related Subsidiaries
REGULATIONS
Pub. L. 110–417, div. C, title XXXV, § 3511(c), Oct. 14,
2008, 122 Stat. 4770, provided that: ‘‘The Secretary of
Transportation shall prescribe such rules as are necessary to carry out section 55305(d) of title 46, United
States Code. The Secretary may prescribe interim rules
necessary to carry out section 55305(d) of such title. An
interim rule prescribed under this subsection shall remain in effect until superseded by a final rule.’’
SECRETARY OF TRANSPORTATION RESPONSIBILITY WITH
RESPECT TO CARGOES PROCURED, FURNISHED, OR FINANCED BY OTHER FEDERAL DEPARTMENTS AND
AGENCIES
Pub. L. 117–263, div. C, title XXXV, § 3502(a), Dec. 23,
2022, 136 Stat. 3065, provided that: ‘‘Not later than 270
days after the date of the enactment of this Act [Dec.
23, 2022], the Administrator of the Maritime Administration shall issue a final rule to implement and enforce section 55305(d) of title 46, United States Code.’’

SUBCHAPTER
TATION OF
ITIES

II—EXPORT
TRANSPORAGRICULTURAL COMMOD-

§ 55311. Findings and purposes
(a) FINDINGS.—Congress finds that—
(1) 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;