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], § 8332(d)(6), Jan. 1, 2021, 134 Stat. 4705; Pub. L. 117–263, div. C, title XXXV, § 3521(d)(1), Dec. 23, 2022, 136 Stat. 3079.) Editorial Notes REFERENCES IN TEXT The date of enactment of the James M. Inhofe Na- tional Defense Authorization Act for Fiscal Year 2023, referred to in par. (2), is the date of enactment of Pub. L. 117–263, which was approved Dec. 23, 2022. AMENDMENTS 2022—Pub. L. 117–263 amended section generally. Prior to amendment, section defined the term ‘‘marine high- way transportation’’ as used in this chapter. 2021—Pub. L. 116–283 substituted ‘‘Marine highway’’ for ‘‘Short sea’’ in section catchline and ‘‘marine high- way transportation’’ for ‘‘short sea transportation’’ in introductory provisions. 2015—Par. (1)(C), (D). Pub. L. 114–92 added subpars. (C) and (D). 2012—Pub. L. 112–213, which directed amendment of section 55605, without specifying the title to be amend- ed, by substituting ‘‘by a documented vessel’’ for ‘‘by vessel’’ in the matter preceding par. (1), was executed to this section, to reflect the probable intent of Con- gress. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as a note under section 1824 of Title 2, The Congress. PART E—CONTROL OF MERCHANT MARINE CAPABILITIES CHAPTER 561—RESTRICTIONS ON TRANSFERS Sec. 56101. Approval required to transfer vessel to non- citizen. 56102. Additional controls during war or national emergency. 56103. Conditional approvals. 56104. Penalty for false statements. 56105. Forfeiture procedure. § 56101. Approval required to transfer vessel to noncitizen (a) RESTRICTIONS.— (1) IN GENERAL.—Except as otherwise pro- vided in this section, section 12119 of this title, 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 man- ner transfer, to a person not a citizen of the United States, an interest in or control of— (i) a documented vessel owned by a cit- izen 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 docu- mented 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 de- fined in section 2101 of this title). (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 with- out 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 dead- weight tons, gross tons, or container equiva- lent 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 documenta- tion; or Page 498 TITLE 46—SHIPPING § 56101 (2) an operating agreement covering the ves- sel under chapter 531 of this title has expired. (d) STATUS OF PROHIBITED TRANSACTION.—A charter, sale, or transfer of a vessel, or of an in- terest in or control of a vessel, in violation of this section is void. (e) PENALTIES.— (1) CRIMINAL PENALTY.—A person that know- ingly sells, charters, or transfers a vessel, or an interest in or control of a vessel, in viola- tion 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, char- ters, 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 en- compassed by the general approval of time charters issued pursuant to this section or reg- ulations prescribed pursuant to such section; and (2) the final action of the Administration with respect to such request, after the provi- sion of notice and opportunity for public com- ment. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1651; Pub. L. 118–31, div. C, title XXXV, § 3514(b)(2), (3), Dec. 22, 2023, 137 Stat. 810.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 56101(a) ...... 46 App.:808(c). Sept. 7, 1916, ch. 451, § 9(c), (d), 39 Stat. 730; July 15, 1918, ch. 152, § 3, 40 Stat. 900; June 5, 1920, ch. 250, § 18, 41 Stat. 994; Exec. Order No. 6166, § 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, § 204, title IX, § 904, 49 Stat. 1987, 2016; June 23, 1938, ch. 600, § 42, 52 Stat. 964; Pub. L. 89–346, § 1, Nov. 8, 1965, 79 Stat. 1305; Pub. L. 97–31, § 12(26), Aug. 6, 1981, 95 Stat. 155; Pub. L. 100–710, title I, § 104(b)(3), Nov. 23, 1988, 102 Stat. 4750; Pub. L. 101–225, title III, § 304(a), Dec. 12, 1989, 103 Stat. 1924; Pub. L. 104–324, title XI, [§]1113(c), (e), Oct. 19, 1996, 110 Stat. 3970, 3971; Pub. L. 107–295, title II, § 205(d), Nov. 25, 2002, 116 Stat. 2096. 46 App.:808a. Pub. L. 98–454, title III, § 302, Oct. 5, 1984, 98 Stat. 1734. HISTORICAL AND REVISION NOTES—CONTINUED Revised Section Source (U.S. Code) Source (Statutes at Large) 56101(b) ...... 46 App.:808(f) Sept. 7, 1916, ch. 451, § 9(f), as added Pub. L. 104–324, title XI, § 1136(b), Oct. 19, 1996, 110 Stat. 3987; Pub. L. 108–136, title XXXV, § 3532(a)(1), Nov. 24, 2003, 117 Stat. 1817. 56101(c) ...... 46 App.:808(e) Sept. 7, 1916, ch. 451, § 9(e), as added Pub. L. 104–239, § 6, Oct. 8, 1996, 110 Stat. 3132; Pub. L. 108–136, title XXXV, § 3532(a)(2), Nov. 24, 2003, 117 Stat. 1817. 56101(d) ...... 46 App.:808(d)(1). 56101(e) ...... 46 App.:808(d)(2)–(4). In subsection (a), the text of 46 App. U.S.C. 808a is omitted as unnecessary. In paragraph (1), the words ‘‘owned by a citizen of the United States’’ are omitted as unnecessary because ownership by a citizen is a re- quirement for documentation. See section 12103 as re- vised by the bill. In subsection (c), before paragraph (1), the words ‘‘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’’ are substituted for ‘‘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’’ be- cause the Merchant Marine Act, 1936, is restated prin- cipally in this subtitle, but other provisions of that Act are being neither restated nor repealed. Editorial Notes REFERENCES IN TEXT The Merchant Marine Act, 1936, referred to in sub- secs. (a)(1) and (c), is act June 29, 1936, ch. 858, 49 Stat. 1985, which was classified principally to chapter 27 (§ 1101 et seq.) of the former Appendix to this title. The Act, with the exception of title V, most of title VI, and sections 301, 801, 802, 809(a), and 909 thereof, was re- pealed and restated, mainly in this subtitle, by Pub. L. 109–304, §§ 8, 19, Oct. 6, 2006, 120 Stat. 1555, 1710. Title V and sections 301 and 909 of the Act are set out as notes under section 53101 of this title. Those portions of title VI not repealed by Pub. L. 109–304 and sections 802 and 809(a) of the Act were repealed by Pub. L. 114–120, title III, § 313(a), Feb. 8, 2016, 130 Stat. 58. Section 801 of the Act was transferred to section 57522 of this title by Pub. L. 114–120, title III, § 313(c)(1)(A), Feb. 8, 2016, 130 Stat. 58. For complete classification of the Act to the Code, see Tables. For disposition of sections of the former Ap- pendix to Title 46, see Disposition Table preceding sec- tion 101 of this title. CODIFICATION The text of section 3502(b) of Pub. L. 116–283, which was formerly set out as a note under this section and was transferred to subsec. (f) of this section by Pub. L. 118–31, was based on Pub. L. 116–283, div. C, title XXXV, § 3502(b), Jan. 1, 2021, 134 Stat. 4398; Pub. L. 118–31, div. C, title XXXV, § 3514(b)(1), Dec. 22, 2023, 137 Stat. 810. AMENDMENTS 2023—Subsec. (f). Pub. L. 118–31 transferred section 3502(b) of Pub. L. 116–283 to this section and redesig- nated it as subsec. (f). See Codification note above. Statutory Notes and Related Subsidiaries FOREIGN VESSEL CHARTERS FOR PASSENGER VESSELS Pub. L. 116–283, div. C, title XXXV, § 3502(b), Jan. 1, 2021, 134 Stat. 4398, as amended by Pub. L. 118–31, div. C, title XXXV, § 3514(b)(1), Dec. 22, 2023, 137 Stat. 810, which directed the Maritime Administrator to make publicly available certain requests relating to vessel Page 499 TITLE 46—SHIPPING § 56102 charters for passenger vessels, was transferred to sub- sec. (f) of this section by Pub. L. 118–31, div. C, title XXXV, § 3514(b)(2), (3), Dec. 22, 2023, 137 Stat. 810. § 56102. Additional controls during war or na- tional emergency (a) IN GENERAL.—During war, or a national emergency declared by Presidential proclama- tion, a person may not, without the approval of the Secretary of Transportation— (1) place under foreign registry a vessel owned in whole or in part by a citizen of the United States or a corporation incorporated under the laws of the United States or of a State; (2) sell, mortgage, lease, charter, deliver, or in any other manner transfer, or agree to sell, mortgage, lease, charter, deliver, or in any other manner transfer, to a person not a cit- izen of the United States— (A) a vessel owned as described in para- graph (1), or an interest therein; (B) a vessel documented under the laws of the United States, or an interest therein; or (C) a facility for building or repairing ves- sels, or an interest therein; (3) issue, assign, or transfer to a person not a citizen of the United States an instrument of indebtedness secured by a mortgage of a vessel to a trustee, by an assignment of an owner’s interest in a vessel under construction to a trustee, or by a mortgage of a facility for building or repairing vessels to a trustee, un- less the trustee or a substitute trustee is ap- proved by the Secretary under subsection (b); (4) enter into an agreement or understanding to construct a vessel in the United States for, or to be delivered to, a person not a citizen of the United States without expressly stipu- lating that construction will not begin until after the war or national emergency has ended; (5) enter into an agreement or understanding whereby there is vested in, or for the benefit of, a person not a citizen of the United States the controlling interest in a corporation that is incorporated under the laws of the United States or a State and that owns a vessel or fa- cility for building or repairing vessels; or (6) cause or procure a vessel, constructed in whole or in part in the United States and never cleared for a foreign port, to depart from a port of the United States before it has been documented under the laws of the United States. (b) TRUSTEES.— (1) APPROVAL.—The Secretary shall approve a trustee or substitute trustee under sub- section (a)(3) if and only if the trustee is a bank or trust company that— (A) is organized as a corporation, and is doing business, under the laws of the United States or a State; (B) is authorized under those laws to exer- cise corporate trust powers; (C) is a citizen of the United States; (D) is subject to supervision or examina- tion by Federal or State authority; and (E) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000. (2) DISAPPROVAL.—If a trustee or substitute trustee ceases to meet the conditions in para- graph (1), the Secretary shall disapprove the trustee or substitute trustee. After the dis- approval, the restrictions on transfer or as- signment without the Secretary’s approval in subsection (a)(3) apply. (3) OPERATION OF VESSEL.—During a period when subsection (a) applies, a trustee referred to in subsection (a)(3), even though approved as a trustee by the Secretary, may not operate the vessel under the mortgage or assignment without the Secretary’s approval. (c) STATUS OF PROHIBITED TRANSACTION.—A transaction in violation of this section is void. (d) RECOVERY OF CONSIDERATION.— (1) IN GENERAL.—A person that deposited or paid consideration in connection with a trans- action prohibited by this section may recover the consideration after tender of the vessel, fa- cility, stock, or other security, or interest therein, to the person entitled to it, or the for- feiture thereof to the United States Govern- ment. (2) EXCEPTION.—Paragraph (1) does not apply if the person in whose interest the consider- ation was deposited, or to whom it was paid, entered into the transaction in the belief that the person depositing or paying the consider- ation was a citizen of the United States. (e) PENALTIES.— (1) CRIMINAL PENALTY.—A person that vio- lates, or attempts or conspires to violate, this section shall be fined under title 18, impris- oned for not more than 5 years, or both. (2) FORFEITURE.—The following shall be for- feited to the Government: (A) A vessel, a facility for building or re- pairing vessels, or an interest in a vessel or such a facility, that is sold, mortgaged, leased, chartered, delivered, transferred, or documented, or agreed to be sold, mort- gaged, leased, chartered, delivered, trans- ferred, or documented, in violation of this section. (B) Stock and other securities sold or transferred, or agreed to be sold or trans- ferred, in violation of this section. (C) A vessel departing in violation of sub- section (a)(6). (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1652.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 56102(a) ...... 46 App.:835(a)–(c) (less provisos), (d)–(f). Sept. 7, 1916, ch. 451, § 37, as added July 15, 1918, ch. 152, § 4, 40 Stat. 901; Exec. Order No. 6166, § 12, eff. June 10, 1933; June 29, 1936, ch. 858, title II, § 204, title IX, § 904, 49 Stat. 1987, 2016; Pub. L. 89–346, § 2, Nov. 8, 1965, 79 Stat. 1306; Pub. L. 97–31, § 12(30), Aug. 6, 1981, 95 Stat. 156. 56102(b) ...... 46 App.:835(c) (pro- visos). 56102(c) ...... 46 App.:835 (2d par. after cl. (f), last par. words before 9th comma). 56102(d) ...... 46 App.:835 (last par. words after 9th comma). 56102(e) ...... 46 App.:835 (1st, 3d pars. after cl. (f)).