(a) Definitions.— In this section:
(1) Bowaters corporation.— The term Bowaters corporation means a corporation that has filed a certificate under oath with the Secretary, in the form and at the times prescribed by the Secretary, establishing that
(A) the corporation is incorporated under the laws of the United States or a State;
(B) a majority of the officers and directors of the corporation are individuals who are citizens of the United States;
(C) at least 90 percent of the employees of the corporation are residents of the United States;
(D) the corporation is engaged primarily in a manufacturing or mineral industry in the United States;
(E) the total book value of the vessels owned by the corporation is not more than 10 percent of the total book value of the assets of the corporation; and
(F) the corporation buys or produces in the United States at least 75 percent of the raw materials used or sold in its operations.
(2) Parent.— The term parent means a corporation that has filed a certificate under oath with the Secretary, in the form and at the times prescribed by the Secretary, establishing that the corporation
(A) is incorporated under the laws of the United States or a State; and
(B) controls, directly or indirectly, at least 50 percent of the voting stock of a Bowaters corporation.
(3) Subsidiary.— The term subsidiary means a corporation that has filed a certificate under oath with the Secretary, in the form and at the times prescribed by the Secretary, establishing that the corporation
(A) is incorporated under the laws of the United States or a State; and
(B) has at least 50 percent of its voting stock controlled, directly or indirectly, by a Bowaters corporation or its parent.
(c) Issuance of Documentation.— A certificate of documentation and appropriate endorsement may be issued for a vessel that
(1) is owned by a Bowaters corporation;
(2) was built in the United States; and
(3)
(A) is self-propelled and less than 500 gross tons as measured under section
14502 of this title, or an alternate tonnage as measured under section
14302 of this title as prescribed by the Secretary under section
14104 of this title; or
(B) is not self-propelled.
(d) Effects of Documentation.—
(1) In general.— Subject to paragraph (2)
(A) a vessel documented under this section may engage in the coastwise trade; and
(B) the vessel and its owner and master are entitled to the same benefits and are subject to the same requirements and penalties as if the vessel were otherwise documented or exempt from documentation under this chapter.
(2) Transportation of passengers or merchandise.— A vessel documented under this section may transport passengers or merchandise for hire in the coastwise trade only
(A) as a service for a parent or subsidiary of the corporation owning the vessel; or
(B) when under a demise or bareboat charter, at prevailing rates for use not in the domestic noncontiguous trades, from the corporation owning the vessel to a carrier that
(i) is subject to jurisdiction under subchapter II of chapter
135 of title
49;
(ii) otherwise qualifies as a citizen of the United States under section
50501 of this title; and
(iii) is not owned or controlled, directly or indirectly, by the corporation owning the vessel.
(f) Penalties.—
(1) Falsifying material fact.—
If a corporation knowingly falsifies a material fact in a certificate filed under subsection (a), the vessel (or its value) documented or operated under this section shall be forfeited.
(2) Transporting merchandise.—
If a vessel transports merchandise for hire in violation of this section, the merchandise shall be forfeited to the United States Government.
(3) Transporting passengers.—
If a vessel transports passengers for hire in violation of this section, the vessel is liable for a penalty of $200 for each passenger so transported.
(4) Remission or mitigation.— A penalty or forfeiture incurred under this subsection may be remitted or mitigated under section
2107 (b) of this title.
