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46 U.S.C. § 53401 — Definitions
Federal law — U.S. Code and appendices · legal_authorities
In this chapter:
(1) **Foreign commerce.—** — The term “foreign commerce” means—
(A) commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and
(B) commerce or trade between foreign countries.
(2) **Participating fleet vessel.—** — The term “participating Fleet vessel” means any product tank vessel covered by an operating agreement under this chapter on or after January 1, 2022, that—
(A) meets the requirements of one of paragraphs (1) through (4) of [section 53402(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section53402/b&num=0&edition=prelim); and
(B) is no more than 20 years of age.
(3) **Person.—** — The term “person” includes corporations, partnerships, and associations existing under, or authorized by, laws of the United States, or any State, territory, district, or possession thereof, or any foreign country.
(4) **Product tank vessel.—** — The term “product tank vessel” means a double-hulled tank vessel capable of carrying simultaneously more than 2 separated grades of refined petroleum products.
(5) **Program participant.—** — The term “program participant” means an owner or operator of a vessel that enters into an operating agreement covering a participating fleet vessel with the Secretary under section 53403.
(6) **Secretary.—** — The term “Secretary” means the Secretary of Transportation, unless the context indicates otherwise.
(7) **United states citizen trust.—** — The term “United States citizen trust”—
(A) means a trust for which—
(i) each of the trustees is a citizen of the United States; and
(ii) the application for documentation of the vessel under chapter 121 of this title includes an affidavit of each tr
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Source location: Title 46, Chapter 534, § 53401; chapter-534-tanker-security-fleet.md
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In this chapter:
(1) **Foreign commerce.—** — The term “foreign commerce” means—
(A) commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and
(B) commerce or trade between foreign countries.
(2) **Participating fleet vessel.—** — The term “participating Fleet vessel” means any product tank vessel covered by an operating agreement under this chapter on or after January 1, 2022, that—
(A) meets the requirements of one of paragraphs (1) through (4) of [section 53402(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section53402/b&num=0&edition=prelim); and
(B) is no more than 20 years of age.
(3) **Person.—** — The term “person” includes corporations, partnerships, and associations existing under, or authorized by, laws of the United States, or any State, territory, district, or possession thereof, or any foreign country.
(4) **Product tank vessel.—** — The term “product tank vessel” means a double-hulled tank vessel capable of carrying simultaneously more than 2 separated grades of refined petroleum products.
(5) **Program participant.—** — The term “program participant” means an owner or operator of a vessel that enters into an operating agreement covering a participating fleet vessel with the Secretary under section 53403.
(6) **Secretary.—** — The term “Secretary” means the Secretary of Transportation, unless the context indicates otherwise.
(7) **United states citizen trust.—** — The term “United States citizen trust”—
(A) means a trust for which—
(i) each of the trustees is a citizen of the United States; and
(ii) the application for documentation of the vessel under chapter 121 of this title includes an affidavit of each trustee stating that the trustee is not aware of any reason involving a beneficiary of the trust that is not a citizen of the United States, or involving any other person who is not a citizen of the United States, as a result of which the beneficiary or other person would hold more than 25 percent of the aggregate power to influence or limit the exercise of the authority of the trustee with respect to matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States;
(B) does not include a trust for which any person that is not a citizen of the United States has authority to direct, or participate in directing, a trustee for a trust in matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States or in removing a trustee without cause, either directly or indirectly through the control of another person, unless the trust instrument provides that persons who are not citizens of the United States may not hold more than 25 percent of the aggregate authority to so direct or remove a trustee; and
(C) may include a trust for which a person who is not a citizen of the United States holds more than 25 percent of the beneficial interest in the trust.
(8) **Long term charter.—** — The term “long term charter” means any time charter of a product tank vessel to the United States Government that, together with options, occurs for a continuous period of more than 180 days.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In General.—** The Secretary of Transportation, in consultation with the Secretary of Defense, shall establish a fleet of active, commercially viable, militarily useful, privately owned product tank 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 vessels of the United States for which there are in effect operating agreements under this chapter, and shall be known as the “Tanker Security Fleet” (hereafter in this chapter referred to as the “Fleet”).
**(b) Vessel Eligibility.—** A vessel is eligible to be included in the Fleet if the vessel—
(1) meets the requirements under paragraph (1), (2), (3), or (4) of subsection (c);
(2) is operated (or in the case of a vessel to be constructed, will be operated) in providing transportation in United States foreign commerce;
(3) is self-propelled;
(4) is not more than 10 years of age on the date the vessel is first included in the Fleet;
(5) is determined by the Secretary of Defense to be suitable for use by the United States for national defense or military purposes in time of war or national emergency;
(6) is commercially viable, as determined by the Secretary of Transportation; and
(7) is—
(A) a vessel of the United States; or
(B) not a vessel of the United States, but—
(i) the owner of the vessel has demonstrated an intent to have the vessel documented under chapter 121 of this title if it is included in the Fleet; and
(ii) at the time an operating agreement is entered into under this chapter, the vessel is eligible for documentation under chapter 121 of this title.
**(c) Requirements Regarding Citizenship of Owners, Charterers, and Operators.—**
(1) **Vessels ow
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Federal law — U.S. Code and appendices · legal_authorities
Page 418
TITLE 46—SHIPPING
§ 53311
1 Editorially supplied.
ted as obsolete. In paragraph (1)(A), the words ‘‘or, with
the approval of the Secretary of Transportation, for a
part interest in a new vessel or for the reconstruction
or reconditioning of a new vessel’’ are substituted for
‘‘(or in the discretion of the Secretary of Transpor-
tation, for a part interest therein), or, with the ap-
proval of the Secretary of Transportation, for the re-
construction or reconditioning of a new vessel or ves-
sels’’ to eliminate unnecessary words.
In subsection (c), the proviso in 46 App. U.S.C. 1161(h)
is omitted as obsolete.
§ 53311. Taxation of deposits on failure of condi-
tions
A deposited gain, if otherwise taxable income
under the law applicable to the taxable year in
which the gain was realized, shall be included in
gross income for that taxable year, except for
purposes of the declared value excess profits tax
and the capital stock tax, if—
(1) the deposited gain is not expended or ob-
ligated within the appropriate period under
section 53310 of this title;
(2) the deposited gain is withdrawn before
the end of that period;
(3) the construction related to that depos-
ited gain has not progressed to the extent of 5
percent of completion within the appropriate
period under section 53310 of this title; or
(4) the Secretary of Transportation finds and
certifies to the Secretary of the Treasury
that, for causes within the control of the tax-
payer, the entire construction related to that
deposited gain is not completed with reason-
able dispatch.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1590.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
53311 ..........
46 App.:1161(i).
June 29, 1936, ch. 858
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