PRIA, Government Policy, Made Personal

Summary

You must get approval from the Secretary of Transportation before you sell, lease, charter, deliver, or otherwise transfer control of a U.S.-documented vessel or a vessel last documented in the United States to someone who is not a U.S. citizen. You also must get approval before you put a documented U.S. vessel under a foreign flag or operate it under a foreign country’s authority. This requirement can be limited by other laws (including section 12119 or section 611 of the Merchant Marine Act, 1936). Vessels used only for pleasure or only for fishing (including fish processing or fish tender boats) are not covered by the transfer rule. The Secretary can give approval before a vessel is officially documented to help with financing. A vessel may be put under a foreign flag without approval only if the owner documents a replacement vessel with equal or greater military capability and similar or greater capacity (measured by deadweight tons, gross tons, or container equivalent units) that is not more than 10 years old, or if an applicable operating agreement has expired. Any transfer done in violation is void. Knowingly breaking these rules can bring up to 5 years in prison, fines under federal law, civil penalties up to $10,000 per violation, and the vessel can be seized. For passenger-vessel charters, the Maritime Administrator must publish requests and final decisions on the Maritime Administration website after public notice and comment.

Title 46, §56101

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(a)Restrictions.—

(1)In General.—

Except as otherwise provided 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 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).

(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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (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. 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 requirement for documentation. See section 12103 as revised 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” because the Merchant Marine Act, 1936, is restated principally 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 subsecs. (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 section 301, 801, 802, 809(a), and 909 thereof, was repealed and restated, mainly in this subtitle, by Pub. L. 109–304, §§ 8, 19, Oct. 6, 2006, 120 Stat. 1555, 1710. Title V and section 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 section 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 Appendix to Title 46, see Disposition Table preceding section 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 redesignated 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 charters for passenger vessels, was transferred to subsec. (f) of this section by Pub. L. 118–31, div. C, title XXXV, § 3514(b)(2), (3), Dec. 22, 2023, 137 Stat. 810.

§56101 Approval Required to Transfer Vessel to Noncitizen