46 U.S.C. § 57506: Minimum selling price of…

Summary

The Secretary of Transportation must not sell a vessel built under this law or under the Merchant Marine Act of 1936 for less than a set minimum price. If the ship will work in foreign trade, the minimum is the estimated foreign construction cost at the time the construction contract is signed, not counting national defense features, minus depreciation (loss of value over time). If the ship will work in domestic trade, the minimum is the cost of building it in the United States, not counting national defense features, minus depreciation. Depreciation is figured using a 25-year life for dry-cargo and passenger ships, and a 20-year life for tankers and other bulk liquid carriers.

Title 46, §57506

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(a)In General.—

A vessel constructed under this subtitle or the Merchant Marine Act, 1936, may not be sold by the Secretary of Transportation for less than the price specified in this section.

(b)Operation in Foreign Trade.—

If the vessel is to be operated in foreign trade, the minimum price is the estimated foreign construction cost (exclusive of national defense features) determined as of the date the construction contract is executed, less depreciation under subsection (d).

(c)Operation in Domestic Trade.—

If the vessel is to be operated in domestic trade, the minimum price is the cost of construction in the United States (exclusive of national defense features), less depreciation under subsection (d).

(d)Depreciation.—

Depreciation under subsections (b) and (c) shall be based on—

(1)a 25-year life for dry-cargo and passenger vessels; and

(2)a 20-year life for tankers and other bulk liquid carrier vessels.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5750646 App.:1195 (last sentence).June 29, 1936, ch. 858, title VII, § 705 (last sentence), as added Aug. 4, 1939, ch. 417, § 11(a), 53 Stat. 1185; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 97–31, § 12(107), Aug. 6, 1981, 95 Stat. 163. 46 App.:1125 note.Pub. L. 86–518, § 9, June 12, 1960, 74 Stat. 217. Subsection (d) is substituted for “less depreciation based on a twenty-five year life” because of section 9 of Public Law 86–518 (June 12, 1960, 74 Stat. 217), which provided that “Nothing in any amendment made by this Act [including section 1 substituting ‘twenty-five’ for ‘twenty’ in 46 App. U.S.C. 1195] shall operate or be interpreted to change from twenty to twenty-five years the provisions of the Merchant Marine Act, 1936, as amended, relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier.”

Editorial Notes

References in Text

The Merchant Marine Act, 1936, referred to in subsec. (a), 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.

§57506 Minimum Selling Price of Vessels