46 Usc 55305

46 USC 55305
NB: This unofficial compilation of the U.S. Code is current as of Jan. 5, 2009 (see http://www.law.cornell.edu/uscode/uscprint.html).

TITLE 46 - SHIPPING
Subtitle V - Merchant Marine
Part D - Promotional Programs
CHAPTER 553 - PASSENGER AND CARGO PREFERENCES
SUBCHAPTER I - GENERAL
§ 55305. Cargoes procured, furnished, or financed by the United States Government
(a) Definition.— 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.
(b) 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, 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.
(c) Waivers.— 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.
(d) 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 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.
(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;
(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) of the Office of Federal Procurement Policy Act (41 U.S.C. 421
(c)(1) 1 or contract with respect to each violation.

Footnotes
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46 USC 55305
NB: This unofficial compilation of the U.S. Code is current as of Jan. 5, 2009 (see http://www.law.cornell.edu/uscode/uscprint.html).

1 So in original. Probably should be followed by a second closing parenthesis.

(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.)

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).
55305(c)
46 App.:1241(b)(1) (1st proviso).
55305(d)
46 App.:1241(b)(2).

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.
Amendments
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.”

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.”

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