Part B - Actions To Address Foreign Practices

TITLE 46 - US CODE - CHAPTER 421 - REGULATIONS AFFECTING SHIPPING IN FOREIGN TRADE

46 USC 42101 - Regulations of the Commission

(a) Unfavorable Conditions.— 
To further the objectives and policy set forth in section 50101 of this title, the Federal Maritime Commission shall prescribe regulations affecting shipping in foreign trade, not in conflict with law, to adjust or meet general or special conditions unfavorable to shipping in foreign trade, whether in a particular trade or on a particular route or in commerce generally, including intermodal movements, terminal operations, cargo solicitation, agency services, ocean transportation intermediary services and operations, and other activities and services integral to transportation systems, and which arise out of or result from laws or regulations of a foreign country or competitive methods, pricing practices, or other practices employed by owners, operators, agents, or masters of vessels of a foreign country.
(b) Initiation of Regulation.— 
A regulation under subsection (a) may be initiated by the Commission on its own motion or on the petition of any person, including another component of the United States Government.

46 USC 42102 - Regulations of other agencies

(a) Request to Agency.— 
To further the objectives and policy set forth in section 50101 of this title, the Federal Maritime Commission shall request the head of a department, agency, or instrumentality of the United States Government to suspend, modify, or annul any existing regulations, or to make new regulations, affecting shipping in the foreign trade, except regulations relating to the Public Health Service, the Consular Service, or the inspection of vessels.
(b) Prior Review and Approval.— 
A department, agency, or instrumentality of the Government may not prescribe a regulation affecting shipping in the foreign trade (except a regulation affecting the Public Health Service, the Consular Service, or the inspection of vessels) until the regulation has been submitted to the Commission for its approval and final action has been taken by the Commission or the President.
(c) Submission to President.— 
If the head of a department, agency, or instrumentality of the Government refuses to comply with a request under subsection (a) or objects to a decision of the Commission under subsection (b), the Commission or the head of the department, agency, or instrumentality may submit the facts to the President. The President may establish, suspend, modify, or annul the regulation.

46 USC 42103 - No preference to Government-owned vessels

A regulation may not give a vessel owned by the United States Government a preference over a vessel owned by citizens of the United States and documented under the laws of the United States.

46 USC 42104 - Information, witnesses, and evidence

(a) Order To Supply Information.— 
In carrying out section 42101 of this title, the Federal Maritime Commission may order any person (including a common carrier, tramp operator, bulk operator, shipper, shippers association, ocean transportation intermediary, or marine terminal operator, or an officer, receiver, trustee, lessee, agent, or employee thereof) to file with the Commission a report, answers to questions, documentary material, or other information the Commission considers necessary or appropriate. The Commission may require the response to any such order to be made under oath. The response shall be provided in the form and within the time specified by the Commission.
(b) Subpoenas and Discovery.— 
In carrying out section 42101 of this title, the Commission may
(1) subpoena witnesses and evidence; and
(2) authorize a party to use depositions, written interrogatories, and discovery procedures that, to the extent practicable, conform to the Federal Rules of Civil Procedure (28 App. U.S.C.).
(c) Witness Fees.— 
Unless otherwise prohibited by law, and subject to funds being appropriated, a witness in a proceeding under section 42101 of this title is entitled to the same fees and mileage as in the courts of the United States.
(d) Penalties.— 
For failure to supply information ordered to be produced or compelled by subpoena under this section, the Commission may
(1) after notice and opportunity for a hearing, suspend tariffs and service contracts of a common carrier or the common carriers right to use tariffs of conferences and service contracts of agreements of which it is a member; or
(2) assess a civil penalty of not more than $5,000 for each day that the information is not provided.
(e) Enforcement.— 
If a person does not comply with an order or subpoena of the Commission under this section, the Commission may seek enforcement in a district court of the United States having jurisdiction over the parties. If, after hearing, the court determines that the order or subpoena was regularly made and duly issued, the court shall enforce the order or subpoena.

46 USC 42105 - Disclosure to public

Notwithstanding any other provision of law, the Federal Maritime Commission may refuse to disclose to the public a response or other information submitted to it under this chapter.

46 USC 42106 - Other actions to remedy unfavorable conditions

If the Federal Maritime Commission finds that conditions unfavorable to shipping in foreign trade as described in section 42101 of this title exist, the Commission may
(1) limit voyages to and from United States ports or the amount or type of cargo carried;
(2) suspend, in whole or in part, tariffs and service contracts for carriage to or from United States ports, including a common carriers right to use tariffs of conferences and service contracts of agreements in United States trades of which it is a member for any period the Commission specifies;
(3) suspend, in whole or in part, an ocean common carriers right to operate under any agreement filed with the Commission, including any agreement authorizing preferential treatment at terminals, preferential terminal leases, space chartering, or pooling of cargo or revenue with other ocean common carriers;
(4) impose a fee not to exceed $1,000,000 per voyage; or
(5) take any other action the Commission finds necessary and appropriate to adjust or meet any condition unfavorable to shipping in the foreign trade of the United States.

46 USC 42107 - Refusal of clearance and entry

At the request of the Federal Maritime Commission
(1) the Secretary of Homeland Security shall
(A) refuse the clearance required by section 60105 of this title to a vessel of a country that is named in a regulation prescribed by the Commission under section 42101 of this title; and
(B) collect any fees imposed by the Commission under section 42106 (4) of this title; and
(2) the Secretary of the department in which the Coast Guard is operating shall
(A) deny entry, for purposes of oceanborne trade, of a vessel of a country that is named in a regulation prescribed by the Commission under section 42101 of this title, to a port or place in the United States or the navigable waters of the United States; or
(B) detain the vessel at the port or place in the United States from which it is about to depart for another port or place in the United States.

46 USC 42108 - Penalty for operating under suspended tariff or service contract

A common carrier that accepts or handles cargo for carriage under a tariff or service contract that has been suspended under section 42104 (d)(1) or 42106 (2) of this title, or after its right to use another tariff or service contract has been suspended under those provisions, is liable to the United States Government for a civil penalty of not more than $50,000 for each day that it is found to be operating under a suspended tariff or service contract.

46 USC 42109 - Consultation with other agencies

The Federal Maritime Commission may consult with, seek the cooperation of, or make recommendations to other appropriate agencies of the United States Government prior to taking any action under this chapter.

TITLE 46 - US CODE - CHAPTER 423 - FOREIGN SHIPPING PRACTICES

46 USC 42301 - Definitions

(a) Defined in Part A.— 
In this chapter, the terms common carrier, marine terminal operator, ocean common carrier, ocean transportation intermediary, shipper, and shippers association have the meaning given those terms in section 40102 of this title.
(b) Other Definitions.— 
In this chapter:
(1) Foreign carrier.— 
The term foreign carrier means an ocean common carrier a majority of whose vessels are documented under the laws of a foreign country.
(2) Maritime services.— 
The term maritime services means port-to-port transportation of cargo by vessels operated by an ocean common carrier.
(3) Maritime-related services.— 
The term maritime-related services means intermodal operations, terminal operations, cargo solicitation, agency services, ocean transportation intermediary services and operations, and all other activities and services integral to total transportation systems of ocean common carriers and their foreign domiciled affiliates for themselves and others.
(4) United states carrier.— 
The term United States carrier means an ocean common carrier operating vessels documented under the laws of the United States.
(5) United states oceanborne trade.— 
The term United States oceanborne trade means the carriage of cargo between the United States and a foreign country, whether directly or indirectly, by an ocean common carrier.

46 USC 42302 - Investigations

(a) In General.— 
The Federal Maritime Commission shall investigate whether any laws, rules, regulations, policies, or practices of a foreign government, or any practices of a foreign carrier or other person providing maritime or maritime-related services in a foreign country, result in the existence of conditions that
(1) adversely affect the operations of United States carriers in United States oceanborne trade; and
(2) do not exist for foreign carriers of that country in the United States under the laws of the United States or as a result of acts of United States carriers or other persons providing maritime or maritime-related services in the United States.
(b) Initiation of Investigation.— 
An investigation under subsection (a) may be initiated by the Commission on its own motion or on the petition of any person, including another component of the United States Government.
(c) Time for Decision.— 
The Commission shall complete an investigation under this section and render a decision within 120 days after it is initiated. However, the Commission may extend this 120-day period for an additional 90 days if the Commission is unable to obtain sufficient information to determine whether a condition specified in subsection (a) exists. A notice providing an extension shall state clearly the reasons for the extension.

46 USC 42303 - Information requests

(a) In General.— 
To further the purposes of section 42302 (a) of this title, the Federal Maritime Commission may order any person (including a common carrier, shipper, shippers association, ocean transportation intermediary, or marine terminal operator, or an officer, receiver, trustee, lessee, agent or employee thereof) to file with the Commission any periodic or special report, answers to questions, documentary material, or other information the Commission considers necessary or appropriate. The Commission may require the response to any such order to be made under oath. The response shall be provided in the form and within the time specified by the Commission.
(b) Subpoenas.— 
In an investigation under section 42302 of this title, the Commission may subpoena witnesses and evidence.
(c) Nondisclosure.— 
Notwithstanding any other provision of law, the Commission may determine that any information submitted to it in response to a request under this section, or otherwise, shall not be disclosed to the public.

46 USC 42304 - Action against foreign carriers

(a) In General.— 
Subject to section 42306 of this title, whenever the Federal Maritime Commission, after notice and opportunity for comment or hearing, determines that the conditions specified in section 42302 (a) of this title exist, the Commission shall take such action to offset those conditions as it considers necessary and appropriate against any foreign carrier that is a contributing cause, or whose government is a contributing cause, to those conditions. The action may include
(1) limitations on voyages to and from United States ports or on the amount or type of cargo carried;
(2) suspension, in whole or in part, of any or all tariffs and service contracts, including an ocean common carriers right to use any or all tariffs and service contracts of conferences in United States trades of which it is a member for any period the Commission specifies;
(3) suspension, in whole or in part, of an ocean common carriers right to operate under any agreement filed with the Commission, including any agreement authorizing preferential treatment at terminals, preferential terminal leases, space chartering, or pooling of cargo or revenue with other ocean common carriers; and
(4) a fee not to exceed $1,000,000 per voyage.
(b) Consultation.— 
The Commission may consult with, seek the cooperation of, or make recommendations to other appropriate agencies of the United States Government prior to taking any action under subsection (a).

46 USC 42305 - Refusal of clearance and entry

Subject to section 42306 of this title, whenever the Federal Maritime Commission determines that the conditions specified in section 42302 (a) of this title exist, then at the request of the Commission
(1) the Secretary of Homeland Security shall refuse the clearance required by section 60105 of this title to a vessel of a foreign carrier that is identified by the Commission under section 42304 of this title; and
(2) the Secretary of the department in which the Coast Guard is operating shall
(A) deny entry, for purposes of oceanborne trade, of a vessel of a foreign carrier that is identified by the Commission under section 42304 of this title, to a port or place in the United States or the navigable waters of the United States; or
(B) detain the vessel at the port or place in the United States from which it is about to depart for another port or place in the United States.

46 USC 42306 - Submission of determinations to President

Before a determination under section 42304 of this title becomes effective or a request is made under section 42305 of this title, the determination shall be submitted immediately to the President. The President, within 10 days after receiving it, may disapprove it in writing, setting forth the reasons for the disapproval, if the President finds that disapproval is required for reasons of national defense or foreign policy.

46 USC 42307 - Review of regulations and orders

A regulation or final order of the Federal Maritime Commission under this chapter is reviewable exclusively in the same forum and in the same manner as provided in section 2342 (3)(B) of title 28.