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46 U.S.C. § 56101 — Approval required to transfer vessel to noncitizen

Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 56101 — Approval required to transfer vessel to noncitizen

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Source file: Laws/federal/codes/united-states-code/title-46/section-56101-approval-required-to-transfer-vessel-to-noncitizen--fcc1aef295.md
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Source location: Title 46, Chapter 561, § 56101; chapter-561-restrictions-on-transfers.md

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**(a) Restrictions.—** (1) **In General.—** — Except as otherwise provided in this section, [section 12119 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section12119&num=0&edition=prelim), or section 611 of the Merchant Marine Act, 1936, a person may not, without the approval of the Secretary of Transportation— (A) sell, lease, charter, deliver, or in any other manner transfer, or agree to sell, lease, charter, deliver, or in any other manner transfer, to a person not a citizen of the United States, an interest in or control of— (i) a documented vessel owned by a citizen of the United States; or (ii) a vessel last documented under the laws of the United States; or (B) place under foreign registry, or operate under the authority of a foreign country, a documented vessel or a vessel last documented under the laws of the United States. (2) **Exceptions.—** — Paragraph (1)(A) does not apply to a vessel that has been operated only for pleasure or only as a fishing vessel, fish processing vessel, or fish tender vessel (as defined in [section 2101 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section2101&num=0&edition=prelim)). **(b) Approval Before Documentation.—** To promote financing with respect to a vessel to be documented under chapter 121 of this title, the Secretary may grant approval under subsection (a) before the vessel is documented. **(c) Exceptions.—** Notwithstanding any other provision of this subtitle, the Merchant Marine Act, 1936, or any contract with the Secretary made under this subtitle or that Act, a person may place a vessel under foreign registry without the approval of the Secretary if— (1) (A) the Secretary, in conjunction with the Secretary of Defense, determines that at least one replacement vessel of equal or greater military capability and 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 this title by the owner of the vessel placed under foreign registry; and (B) the replacement vessel is not more than 10 years old on the date of that documentation; or (2) an operating agreement covering the vessel under chapter 531 of this title has expired. **(d) Status of Prohibited Transaction.—** A charter, sale, or transfer of a vessel, or of an interest in or control of a vessel, in violation of this section is void. **(e) Penalties.—** (1) **Criminal penalty.—** — A person that knowingly sells, charters, or transfers a vessel, or an interest in or control of a vessel, in violation of this section shall be fined under title 18, imprisoned for not more than 5 years, or both. (2) **Civil penalty.—** — A person that sells, charters, 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. (3) **Forfeiture.—** — A documented vessel may be seized by and forfeited to the Government if, in violation of this section, a person— (A) knowingly sells, charters, or transfers the vessel or an interest in or control of the vessel; or (B) places the vessel under foreign registry or operates the vessel under the authority of a foreign country. **(f) Foreign Vessel Charters for Passenger Vessels.—** The Maritime Administrator shall make publicly available on an appropriate website of the Maritime Administration— (1) a detailed summary of each request for a determination, approval, or confirmation that a vessel charter for a passenger vessel is encompassed by the general approval of time charters issued pursuant to this section or regulations prescribed pursuant to such section; and (2) the final action of the Administration with respect to such request, after the provision of notice and opportunity for public comment.

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 12119 — Owners engaged primarily in leasing or financing transactions

**(a) Definitions.—** In this section: (1) **Affiliate.—** — The term “affiliate” means, with respect to any person, any other person that is— (i) directly or indirectly controlled by, under common control with, or controlling that person; or (ii) named as being part of the same consolidated group in any report or other document submitted to the United States Securities and Exchange Commission or the Internal Revenue Service. (2) **Cargo.—** — The term “cargo” does not include cargo to which title is held for non-commercial reasons and primarily for the purpose of evading the requirements of subsection (c)(3). (3) **Oil.—** — The term “oil” has the meaning given that term in [section 2101(28) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section2101/28&num=0&edition=prelim). (4) **Passive investment.—** — The term “passive investment” means an investment in which neither the investor nor any affiliate of the investor is involved in, or has the power to be involved in, the formulation, determination, or direction of any activity or function concerning the management, use, or operation of the asset that is the subject of the investment. (5) **Qualified proprietary cargo.—** — The term “qualified proprietary cargo” means— (A) oil, petroleum products, petrochemicals, or liquefied natural gas cargo that is beneficially owned by the person that submits to the Secretary an application or annual certification under subsection (c)(3), or by an affiliate of that person, immediately before, during, or immediately after the cargo is carried in coastwise trade on a vessel owned by that person; (B) oil, petroleum products, petrochemicals, or liquefied natural gas cargo not beneficially owned by the person that submits to the Secr

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 2101 — General definitions

In this subtitle— (1) “associated equipment”— (A) means— (i) a system, accessory, component, or appurtenance of a recreational vessel; or (ii) a marine safety article intended for use on board a recreational vessel; but (B) with the exception of emergency locator beacons for recreational vessels operating beyond 3 nautical miles from the baselines from which the territorial sea of the United States is measured or beyond 3 nautical miles from the coastline of the Great Lakes, does not include radio equipment. (2) “Coast Guard” means the organization established and continued under [section 101 of title 14](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title14-section101&num=0&edition=prelim). (3) “Commandant” means the Commandant of the Coast Guard. (4) “commercial service” includes any type of trade or business involving the transportation of goods or individuals, except service performed by a combatant vessel. (5) “consideration” means an economic benefit, inducement, right, or profit including pecuniary payment accruing to an individual, person, or entity, but not including a voluntary sharing of the actual expenses of the voyage, by monetary contribution or donation of fuel, food, beverage, or other supplies. (6) “crude oil” means a liquid hydrocarbon mixture occurring naturally in the earth, whether or not treated to render it suitable for transportation, and includes crude oil from which certain distillate fractions may have been removed, and crude oil to which certain distillate fractions may have been added. (7) “crude oil tanker” means a tanker engaged in the trade of carrying crude oil. (8) “dangerous drug” means a narcotic drug, a controlled substance, or a controlled substance analog (as defined in section 102 of the Com

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 53101 — Definitions

In this chapter: (1) **Bulk cargo.—** — The term “bulk cargo” means cargo that is loaded and carried in bulk without mark or count. (2) **Contractor.—** — The term “contractor” means an owner or operator of a vessel that enters into an operating agreement for the vessel with the Secretary under section 53103. (3) **Fleet.—** — The term “Fleet” means the Maritime Security Fleet established under section 53102(a). (4) **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. (5) **Participating fleet vessel.—** — The term “participating fleet vessel” means any vessel that— (A) on October 1, 2015— (i) meets the requirements of paragraph (1), (2), (3), or (4) of section 53102(c); and (ii) is less than 20 years of age if the vessel is a tank vessel, or is less than 25 years of age for all other vessel types; and (B) on December 31, 2014, is covered by an operating agreement under this chapter. (6) **Person.—** — 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. (7) **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. (8) **Secretary.—** — The term “Secretary” means the Secretary of Transportation. (9) **Tank vessel.—** — The term “tank vessel” has the meaning that term has under [section 2101 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 57522 — Books and records, balance sheets, and inspection and auditing

Every contract executed by the Secretary of Transportation under this chapter shall contain provisions requiring (1) that, the contractor and every affiliate, domestic agent, subsidiary, or holding company connected with, or directly or indirectly controlling or controlled by, the contractor, to keep its books, records, and accounts, relating to the maintenance, operation, and servicing of the vessels, services, routes, and lines covered by the contract, in such form and under such regulations as may be prescribed by the Secretary of Transportation; (2) that the contractor and every affiliate, domestic agent, subsidiary, or holding company connected with, or directly or indirectly controlling or controlled by, the contractor, to file, upon notice from the Secretary of Transportation, balance sheets, profit and loss statements, and such other statements of financial operations, special report, memoranda of any facts and transactions, which in the opinion of the Secretary of Transportation affect the financial results in, the performance of, or transactions or operations under, such contract; (3) that the Secretary of Transportation shall be authorized to examine and audit the books, records, and accounts of all persons referred to in this section whenever he may deem it necessary or desirable; and (4) that upon the willful failure or refusal of any person described in this section to comply with the contract provisions required by this section, the Secretary of Transportation shall have the right to rescind the contract, and upon such rescission, the United States shall be relieved of all further liability on such contract.

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 101 — Agency

In this title, the term “agency” means a department, agency, or instrumentality of the United States Government.

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 31301 — Definitions

In this chapter— (1) “acknowledge” means making— (A) an acknowledgment or notarization before a notary public or other official authorized by a law of the United States or a State to take acknowledgments of deeds; or (B) a certificate issued under the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents, 1961; (2) “district court” means— (A) a district court of the United States (as defined in [section 451 of title 28](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-section451&num=0&edition=prelim)); (B) the District Court of Guam; (C) the District Court of the Virgin Islands; (D) the District Court for the Northern Mariana Islands; (E) the High Court of American Samoa; and (F) any other court of original jurisdiction of a territory or possession of the United States; (3) “mortgagee” means— (A) a person to whom property is mortgaged; or (B) when a mortgage on a vessel involves a trust, the trustee that is designated in the trust agreement; (4) “necessaries” includes repairs, supplies, towage, and the use of a dry dock or marine railway; (5) “preferred maritime lien” means a maritime lien on a vessel— (A) arising before a preferred mortgage was filed under [section 31321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31321&num=0&edition=prelim); (B) for damage arising out of maritime tort; (C) for wages of a stevedore when employed directly by a person listed in [section 31341 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31341&num=0&edition=prelim); (D) for wages of the crew of the vessel; (E) for general average; or (F) for salvage, including contract salvage; (6) “preferr

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 53104 — Effectiveness of operating agreements

**(a) Effectiveness, Generally.—** The Secretary may enter into an operating agreement under this chapter for fiscal year 2006. Except as provided in subsection (b), the agreement shall be effective only for 1 fiscal year, but shall be renewable, subject to the availability of appropriations, for each subsequent fiscal year through the end of fiscal year 2040. **(b) Vessels Under Charter to United States.—** Unless an earlier date is requested by the applicant, the effective date for an operating agreement with respect to a vessel that is, on the date of entry into an operating agreement, on charter to the United States Government, other than a charter pursuant to an Emergency Preparedness Agreement under section 53107, shall be the expiration or termination date of the Government charter covering the vessel, or any earlier date the vessel is withdrawn from that charter. **(c) Termination.—** (1) **Termination by secretary.—** — If the contractor with respect to an operating agreement materially fails to comply with the terms of the agreement— (A) the Secretary shall notify the contractor and provide a reasonable opportunity to comply with the operating agreement; (B) the Secretary shall terminate the operating agreement if the contractor fails to achieve such compliance; and (C) upon such termination, any funds obligated by the agreement shall be available to the Secretary to carry out this chapter. (2) **Early termination by contractor, generally.—** — An operating agreement under this chapter shall terminate on a date specified by the contractor if the contractor notifies the Secretary, by not later than 60 days before the effective date of the termination, that the contractor intends to terminate the agreement. **(d) Nonrenewal for Lack of Funds.—** If

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 53204 — Effectiveness of operating agreements

**(a) Effectiveness Generally.—** The Secretary may enter into an Operating Agreement under this chapter for fiscal year 2021. Except as provided in subsection (d), the agreement shall be effective only for one fiscal year, but shall be renewable, subject to available appropriations, for each subsequent year. **(b) Vessels Under Charter to the United States.—** Vessels under charter to the United States are eligible to receive payments pursuant to their Operating Agreements. **(c) Termination.—** (1) **Termination by the secretary.—** — If the Contractor with respect to an Operating Agreement materially fails to comply with the terms of the Agreement— (A) the Secretary shall notify the Contractor and provide a reasonable opportunity for it to comply with the Operating Agreement; (B) the Secretary shall terminate the Operating Agreement if the Contractor fails to achieve such compliance; and (C) upon such termination, any funds obligated by the Agreement shall be available to the Secretary to carry out this chapter. (2) **Early termination by a contractor.—** — An Operating Agreement under this chapter shall terminate on a date specified by the Contractor if the Contractor notifies the Secretary, not fewer than 60 days prior to the effective date of the termination, that the Contractor intends to terminate the Agreement. **(d) Nonrenewal for Lack of Funds.—** If, by the first day of a fiscal year, sufficient funds have not been appropriated under the authority provided by this chapter for that fiscal year for all Operating Agreements, then the Secretary shall notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services of the House of Representatives that Operating Agreem

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 53404 — Effectiveness of operating agreements

**(a) In General.—** Subject to the availability of appropriations for such purpose, the Secretary may enter into an operating agreement under this chapter for fiscal year 2022 and any subsequent fiscal year. The agreement shall be effective only for 1 fiscal year, but shall be renewable, subject to the availability of appropriations, for each fiscal year through the end of fiscal year 2040. **(b) Vessels Under Charter to the United States.—** Any vessel under long term charter to the United States is not eligible to participate in the Fleet. **(c) Termination.—** (1) **Termination by secretary for lack of program participant compliance.—** — If the program participant with respect to an operating agreement materially fails to comply with the terms of the agreement— (A) the Secretary shall notify the program participant and provide a reasonable opportunity to comply with the operating agreement; and (B) the Secretary shall terminate the operating agreement if the program participant fails to achieve such compliance. (2) **Termination by program participant.—** — If a program participant provides notice of the intent to terminate an operating agreement under this chapter on a date specified by not later than 60 days prior to the date specified by the program participant for such termination, such agreement shall terminate on the date specified by the program participant. **(d) Nonrenewal for Lack of Funds.—** If, by the first day of a fiscal year, sufficient funds have not been appropriated under the authority provided by this chapter for that fiscal year, then the Secretary shall notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services and the Committee on Transportatio

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 56101 — Approval required to transfer vessel to

Page 497 TITLE 46—SHIPPING § 56101 vessel of cargo (including such carriage of cargo and passengers), if such cargo— (A) is— (i) contained in intermodal cargo con- tainers and loaded by crane on the vessel; (ii) loaded on the vessel by means of wheeled technology, including roll-on roll- off cargo; (iii) shipped in discrete units or packages that are handled individually, palletized, or unitized for purposes of transportation; (iv) bulk, liquid, or loose cargo loaded in tanks, holds, hoppers, or on deck; or (v) freight vehicles carried aboard com- muter ferry boats; and (B) is— (i) loaded at a port in the United States and unloaded either at another port in the United States or at a port in Canada or Mexico; or (ii) loaded at a port in Canada or Mexico and unloaded at a port in the United States. (2) The term ‘‘Tribal government’’ means the recognized governing body of any Indian or Alaska Native Tribe, band, nation, pueblo, village, community, component band, or com- ponent reservation, individually identified (in- cluding parenthetically) in the list published most recently, as of the date of enactment of the James M. Inhofe National Defense Author- ization Act for Fiscal Year 2023, pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131). (3) The term ‘‘Alaska Native Corporation’’ has the meaning given the term ‘‘Native Cor- poration’’ under section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602). (Added Pub. L. 110–140, title XI, § 1121(a), Dec. 19, 2007, 121 Stat. 1761; amended Pub. L. 112–213, title IV, § 405(b), Dec. 20, 2012, 126 Stat. 1571; Pub. L. 114–92, div. C, title XXXV, § 3508, Nov. 25, 2015, 129 Stat. 1223; Pub. L. 116–283, div. G, title LVXXXIII [LXXXIII], § 83

Source: Supplied 2024 U.S. Code historical extraction · 46 U.S.C. § 56101

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