[§ 41]

46 U.S.C. 839. 40 Stat. 902.

Board may approve transactions conditionally.

Penalty for breach of conditions.

Penalty for making false statement of fact to secure board's approval.

46 U.S.C. 840. 40 Stat. 903.

Vessels to be considered documented until registry, enrollment, or license is canceled by board.

Rules and regulations.

P.L. 87-346.

75 Stat. 766.

SEC. 41. That whenever by said section nine or thirtyseven the approval of the board is required to render any act or transaction lawful, such approval may be accorded either absolutely or upon such conditions as the board prescribes. Whenever the approval of the board is accorded upon any condition a statement of such condition shall be entered upon its records and incorporated in the same document or paper which notifies the applicant of such approval. A violation of such condition so incorporated shall constitute a misdemeanor and shall be punishable by fine and imprisonment in the same manner, and shall subject the vessel, stocks, bonds, or other subject matter of the application conditionally approved to forfeiture in the same manner, as though the Act conditionally approved had been done without the approval of the board, but the offense shall be deemed to have been committed at the time of the violation of the condition.

Whenever by this Act the approval of the board is required to render any act or transaction lawful, whoever knowingly makes any false statement of a material fact to the board, or to any member thereof, or to any officer, attorney, or agent thereof, for the purpose of securing such approval, shall be guilty of a misdemeanor and subject to a fine of not more than $5,000, or to imprisonment for not more than five years, or both.

SEC. 42. That any vessel registered, enrolled, or licensed under the laws of the United States shall be deemed to continue to be documented under the laws of the United States within the meaning of subdivision (b) of section thirty-seven, until such registry, enrollment, or license is surrendered with the approval of the board, the provisions of any other Act of Congress to the contrary notwithstanding.

SEC. 43. The Commission shall make such rules and 46 U.S.C. 841a. regulations as may be necessary to carry out the provisions of this Act.

46 U.S.C. 841b.

Issuance.

SEC. 44. (a) No person shall engage in carrying on the business of forwarding as defined in this Act unless such person holds a license issued by the Federal Maritime Commission to engage in such business: Provided, however, That a person whose primary business is the sale of merchandise may dispatch shipments of such merchandise without a license.

(b) A forwarder's license shall be issued to any qualified applicant therefor if it is found by the Commission that the applicant is, or will be, an independent ocean freight forwarder as defined in this Act and is fit, willing, and able properly to carry on the business of forwarding and to conform to the provisions of this Act and the requirements, rules, and regulations of the Commission issued thereunder, and that the proposed forwarding business is, or will be, consistent with the national maritime policies declared in the Merchant Marine Act, 1936;

[§ 44(e)(5)]

46 U.S.C. 1245.

otherwise such application shall be denied. Any inde- 49 Stat. 1985. pendent ocean freight forwarder who, on the effective date of this Act, is carrying on the business of forwarding under a registration number issued by the Commission may continue such business for a period of one hundred and twenty days thereafter without a license, and if application for such license is made within such period, such forwarder may, under such regulations as the Commission shall prescribe, continue such business until otherwise ordered by the Commission.

(c) The Commission shall prescribe reasonable rules Conditions. and regulations to be observed by independent ocean freight forwarders and no such license shall be issued or remain in force unless such forwarder shall have furnished a bond or other security approved by the Commission in such form and amount as in the opinion of the Commission will insure financial responsibility and the supply of the services in accordance with contracts, agreements, or arrangements therefor.

(d) Licenses shall be effective from the date specified therein, and shall remain in effect until suspended or terminated as herein provided. Any such license may, upon application of the holder thereof, in the discretion of the Commission, be amended or revoked, in whole or in part, or may upon complaint, or on the Commission's 75 Stat. 523. own initiative, after notice and hearing, be suspended or revoked for willful failure to comply with any provision of this Act, or with any lawful order, rule, or regulation of the Commission promulgated thereunder.

of licensees.

(e) A common carrier by water may compensate a per- Compensation son carrying on the business of forwarding to the extent of the value rendered such carrier in connection with any shipment dispatched on behalf of others when, and only when, such person is licensed hereunder and has performed with respect to such shipment the solicitation and securing of the cargo for the ship or the booking of, or otherwise arranging for space for, such cargo, and at least two of the following services:

(1) The coordination of the movement of the cargo to shipside;

(2) The preparation and processing of the ocean

bill of lading;

(3) The preparation and processing of dock re- P.L. 87-254. ceipts or delivery orders;

(4) The preparation and processing of consular

documents or export declarations;

(5) The payment of the ocean freight charges on such shipments:

pensation.

Provided, however, That where a common carrier by Separate comwater has paid, or has incurred an obligation to pay, either to an ocean freight broker or freight forwarder, separate compensation for the solicitation or securing of cargo for the ship or the booking of, or otherwise arrang

[8 44(e)(5) to end]

"Title of Act". 46 U.S.C. 842.

ing for space for, such cargo, then such carrier shall not be obligated to pay additional compensation for any other forwarding services rendered on the same cargo. Before any such compensation is paid to or received by any person carrying on the business of forwarding, such person shall, if he is qualified under the provisions of this paragraph to receive such compensation, certify in writing to the common carrier by water by which the shipment was dispatched that he is licensed by the Federal Maritime Commision as an independent ocean freight forwarder and that he performed the above specified services with respect to such shipment. Such carrier shall be entitled to rely on such certification unless it knows that the certification is incorrect.

SEC. 45. That this Act may be cited as "Shipping Act, 1916."

MERCHANT MARINE ACT, 1928

[As amended through the 89th Congress, first session] (45 Stat. 689, Chapter 675, approved May 22, 1928)

AN ACT

To further develop an American merchant marine, to assure its permanence in the transportation of the foreign trade of the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I-DECLARATION OF POLICY

45 Stat. 689.

SEC. 1. The policy and the primary purpose declared 46 U.S.C. 891. in section 1 of the Merchant Marine Act, 1920 [U.S.C., Title 46, § 861], are hereby confirmed.

TITLE II-SHIPPING BOARD VESSELS

Section 201 was repealed by section 903 (c) of the Merchant Marine Act, 1936, supra.

REMODELING AND IMPROVING

SEC. 202. In addition to its power to recondition and repair vessels under section 12 of the Merchant Marine Act, 1920, as amended [U.S.C., Title 46, § 871], the board may remodel and improve vessels owned by the United States and in its possession or under its control, so as to equip them adequately for competition in the foreign trade of the United States. Any vessel so remodeled or improved shall be documented under the laws of the United States and shall remain documented under such laws for not less than five years from the date of the completion of the remodeling or improving and so long as there remains due the United States any money or interest on account of such vessel, and during such period it shall be operated only on voyages which are not exclusively coastwise.

REPLACEMENTS

Necessity for

replacement

SEC. 203. The necessity for the replacement of vessels owned by the United States and in the possession or recognized. under the control of the board and the construction for