PRIA, Government Policy, Made Personal

Summary

Sets how tolls for ships using the Panama Canal must be figured and what they must pay for. Most large ships are charged by "net vessel tons" (100 cubic feet of space that earns money, measured under Panama Canal rules). Other floating craft are charged by displacement tonnage (how much water they push aside). Empty ships with no cargo or passengers can be charged less. The Commission may set special rates for small vessels (including yachts). U.S. government ships, including warships, auxiliaries, and ocean-going training ships owned by the United States and run by State nautical schools, must pay tolls. Toll rates must be set to bring in money to cover almost all costs to run and maintain the Canal and its facilities. That includes costs the law allows to be paid from the Panama Canal Dissolution Fund under section 3714a(c), unrecovered costs incurred on or after October 1, 1979, interest, depreciation, working capital, payments to the Republic of Panama under paragraph 5 of Article III and paragraph 4(a) and (b) of Article XIII of the Panama Canal Treaty of 1977, and money for replacing, expanding, or improving plant. Tolls must not be set to pay amounts under paragraph 4(c) of Article XIII of the Panama Canal Treaty of 1977. Charging tolls must also follow the treaties with Great Britain (treaty signed November 18, 1901, Article III, section 1), with Colombia (treaty signed April 6, 1914, Article I), and the Treaty Concerning Permanent Neutrality and Operation of the Panama Canal with Panama (signed September 7, 1977, Articles II, III, and VI).

Title 22, §3792

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Tolls based on net vessel tons and on displacement tonnage

Tolls on merchant vessels, army and navy transports, colliers, tankers, hospital ships, and supply ships shall be based on net vessel tons of one hundred cubic feet each of actual earning capacity, or its equivalent, determined in accordance with the rules for the measurement of vessels for the Panama Canal, and tolls on other floating craft shall be based on displacement tonnage. The tolls on vessels in ballast without passengers or cargo may be less than the tolls for vessels with passengers or cargo. Tolls for small vessels (including yachts), as defined by the Commission, may be set at rates determined by the Commission without regard to the preceding provisions of this subsection.

(b)Toll rates prescribed to cover all costs of operation and maintenance of Panama Canal

Tolls shall be prescribed at rates calculated to produce revenues to cover as nearly as practicable all costs of maintaining and operating the Panama Canal (including costs authorized to be paid from the Panama Canal Dissolution Fund under section 3714a(c) of this title), together with the facilities and appurtenances related thereto, including unrecovered costs incurred on or after October 1, 1979, interest, depreciation, working capital, payments to the Republic of Panama pursuant to paragraph 5 of Article III and paragraph 4(a) and (b) of Article XIII of the Panama Canal Treaty of 1977, and capital for plant replacement, expansion, and improvements. Tolls shall not be prescribed at rates calculated to produce revenues sufficient to cover payments to the Republic of Panama pursuant to paragraph 4(c) of Article XIII of the Panama Canal Treaty of 1977.

(c)Payment of tolls by vessels of United States

Vessels operated by the United States, including vessels of war and auxiliary vessels, and ocean-going training ships owned by the United States and operated by State nautical schools, shall pay tolls.

(d)Levy of tolls

The levy of tolls is subject to the provisions of section 1 of Article III of the treaty between the United States of America and Great Britain signed November 18, 1901, of Article I of the treaty between the United States of America and the Republic of Colombia signed April 6, 1914, and of Articles II, III, and VI of the Treaty Concerning Permanent Neutrality and Operation of the Panama Canal, between the United States of America and the Republic of Panama, signed September 7, 1977.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1997—Subsec. (a). Pub. L. 105–85 substituted “and supply ships” for “supply ships, and yachts” and inserted at end “Tolls for small vessels (including yachts), as defined by the Commission, may be set at rates determined by the Commission without regard to the preceding provisions of this subsection.” 1992—Subsec. (a). Pub. L. 102–484, § 3513, inserted “, or its equivalent,” after “earning capacity”. Subsec. (b). Pub. L. 102–484, § 3521(b)(2), substituted “Panama Canal (including costs authorized to be paid from the Panama Canal Dissolution Fund under section 3714a(c) of this title)” for “Panama Canal”. 1987—Subsec. (b). Pub. L. 100–203 inserted “working capital,” after “depreciation,”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1987 AmendmentAmendment by Pub. L. 100–203 effective Jan. 1, 1988, see section 5429 of Pub. L. 100–203, set out as a note under section 3712 of this title.

§3792 Bases of Tolls