the approval of the Interstate Commerce Commission, now owned or controlled by any common carrier by rail and if such car ferry is built in and documented under the laws of the United States;

(6) upon such terms and conditions as the Secretary of the Treasury by regulation may prescribe, and, if the transporting vessel is of foreign registry, upon a finding by the Secretary of the Treasury, pursuant to information obtained and furnished by the Secretary of State, that the government of the nation of registry extends reciprocal privileges to vessels of the United States, this subsection shall not apply to the transportation of empty cargo vans, empty lift vans, and empty shipping tanks by vessels of the United States not qualified to engage in the coastwise trade, or by vessels of foreign registry, so long as such vans or tanks are owned or leased by the owner or operator of the transporting vessel and are being transported for use in the carriage of cargo in foreign trade.

(c) (1) Notwithstanding any other provision of law, a corporation incorporated under the laws of the United States or any State, territory, district, or possession thereof, or the Commonwealth of Puerto Rico, shall be deemed to be a citizen of the United States for the purposes of and within the meaning of that term as used in subsection (b) of this section, Revised Statutes, section 4370 (46 U.S.C. 316), and the laws relating to the documentation of vessels, if it is established by a certificate filed with the Secretary of the Treasury as hereinafter provided, that(A) a majority of the officers and directors of such corporation are citizens of the United States;

(B) not less than 90 per centum of the employees of such corporation are residents of the United States;

(C) such corporation is engaged primarily in a manufacturing or mineral industry in the United States or any territory, district, or possession thereof or the Commonwealth of Puerto Rico;

(D) the aggregate book value of the vessels owned by such corporation does not exceed 10 per centum of the aggregate book value of the assets of such corporation; and

(E) such corporation purchases or produces in the United States, its territories, or possessions, or the Commonwealth of Puerto Rico, not less than 75 per centum of the raw materials used or sold in its operations; but no vessel owned by any such corporation shall engage in the fisheries or in the transportation of merchandise or passengers for hire between points in the United States, including territories, districts, and possessions thereof embraced within the coastwise laws, and the Commonwealth of Puerto Rico, except as a service for a parent or subsidiary corporation and except when such vessel is under demise or bareboat charter at prevailing rates for use otherwise than in the domestic noncontiguous trades from any such corporation to a common or contract carrier subject to part 3 of the Interstate Commerce Act, as amended, which otherwise qualifies as a citizen under section 4101 of this Act, and which is not connected, directly or indirectly, by way of ownership or control with such corporation.

(2) As used herein "parent" means a corporation which controls, directly or indirectly, at least 50 per centum of the voting stock of such corporation, and "subsidiary" means a corporation not less than 50 per centum of the voting stock of which is controlled, directly or indirectly, by such corporation or its parent, but no corporation shall be deemed to be a "parent" or "subsidiary" hereunder unless it is incorporated under the laws of the United States, or any State, territory, district, or possession thereof, or the Commonwealth of Puerto Rico, and there has been filed with the Secretary of the Treasury a certificate as hereinafter provided.

(3) Vessels built in the United States and owned by a corporation meeting the conditions hereof which are non-self-propelled or which, if self-propelled, are of less than five hundred gross tons shall be entitled to documentation under the laws of the United States, and except as restricted by this subsection, shall be entitled to engage in the coastwise trade and, together with their owners or masters. shall be entitled to all the other benefits and privileges and shall be subject to the same requirements, penalties, and forfeitures as may be applicable in the case of vessels built in the United States and otherwise documented or exempt from documentation under the laws of the United States.

(4) A corporation seeking under this subsection to document a vessel under the laws of the United States or to operate a vessel exempt from documentation under the laws of the United States shall file with the Secretary of the Treasury of th United States a certificate under oath, in such form and at such times as may be prescribed by him, executed by its duly authorized officer or agent, establishing that such corporation complies with the conditions of this subsection above sez

forth. A "parent" or "subsidiary" of such corporation shall likewise file with the Secretary of the Treasury a certificate under oath, in such form and at such time as may be prescribed by him, executed by its duly authorized officer or agent, establishing that such "parent" or "subsidiary" complies with the conditions of this subsection above set forth, before such corporation may transport any merchandise or passengers for such parent or subsidiary. If any material matter of fact is alleged in any such certificate which, within the knowledge of the party so swearing, is not true, there shall be a forfeiture of the vessel (or the value thereof) documented or operated under this subsection in respect to which the oath shall have been made. If any vessel shall transport merchandise for hire in violation of this subsection, such merchandise shall be forfeited to the United States. If any vessel shall transport passengers for hire in violation of this subsection, such vessel shall be subject to a penalty of $200 for each passenger so transported. Any penalty or forfeiture incurred under this subsection may be remitted or mitigated by the Secretary of the Treasury under the provisions of sections 5294, Revised Statutes (46 U.S.C. 7).

(5) Any corporation which has filed a certificate with the Secretary of the Treasury as provided for in this subsection shall cease to be qualified under this subsection if there is any change in its status whereby it no longer meets the conditions above set forth, and any documents theretofore issued to it, pursuant to the provisions of this subsection, shall be forthwith surrendered by it to the Secretary of the Treasury.

(d) As used in this section "person", "vessel", "documented under the laws of the United States", and, except as otherwise provided in subsection (c), "citizen of the United States" shall have the meaning assigned to them by section 4101

of this Act.

PREVENTING CARRIER FROM SERVING PORT AT REGULAR RATES

SEC. 6104. Without limiting the power and authority otherwise vested in the Secretary, it shall be unlawful for any common carrier by water, either directly or indirectly, through the medium of an agreement, conference, association, understanding, or otherwise, to prevent or attempt to prevent any other such carrier from serving any port designed for the accommondation of oceangoing vessels located on any improvement project authorized by the Congress or through it by any other agency of the Federal Government, lying within the continental limits of the United States, at the same rates which it charges at the nearest port already regularly served by it, and any such common carrier violating this section shall be subject to punishment as provided in section 3411 of this Act.

CHARGES FOR TRANSPORTATION SUBJECT TO INTERSTATE COMMERCE ACT

SEC. 6105. (a) No common carrier shall charge, collect, or receive, for transportation subject to the Interstate Commerce Act of persons or property, under any joint rate, fare, or charge, or under any export, import, or other proportional rate, fare, or charge, which is based in whole or in part on the fact that the persons or property affected thereby are to be transported to, or have been transported from any port in a possession or dependency of the United States or in the Commonwealth of Puerto Rico, or in a foreign country, by a carrier by water in foreign commerce, any lower rate, fare, or charge than that charged, collected, or received by it for the transportation of persons, or of a like kind of property, for the same distance, in the same direction, and over the same route, in connection with commerce wholly within the United States, unless the vessel so transporting such persons or property is, or unless it was at the time of such transportation by water, documented under the laws of the United States. Whenever the Secretary is of the opinion, however, that adequate shipping facilities to or from any port in a possession or dependency of the United States or a foreign country are not afforded by vessels so documented, he shall certify this fact to the Interstate Commerce Commission, and the Commission may, by order, suspend the operation of the provisions of this subsection with respect to the rates, fares, and charges for the transportation by rail of persons and property transported from, or to be transported to, such ports, for such length of time and under such terms and conditions as it may prescribe in such order, or in any order supplemental thereto. Such suspension of operation of the provisions of this section may be terminated by order of the Interstate Commerce Commission whenever the Secretary is of the opinion that adequate shipping facilities by such vessels to such ports are afforded and shall so certify to such Commission.

(b) As used in this section "vessel" and "documented under the laws of the United States" shall have the meaning assigned to them by section 4101 (d) and (f) of this Act.

AMERICAN BUREAU OF SHIPPING

SEC. 6106. For the classification of vessels owned by the United States, and for such other purposes in connection therewith as are the proper functions of a classification bureau, all departments, boards, bureaus, and commissions of the Government are hereby directed to recognize the American Bureau of Shipping as their agency so long as the American Bureau of Shipping continues to be maintained as an organization which has no capital stock and pays no dividends: Provided, That the Secretary of the Department in which the Coast Guard is operating and the Secretary of Commerce shall each appoint one representative who shall represent the Government upon the executive committee of the American Bureau of Shipping, and the Bureau shall agree that these representatives shall be accepted by them as active members of such committee. Such representatives of the Government shall serve without any compensation, except necessary traveling expenses: Provided further, That the official list of merchant vessels published by the Government shall hereafter contain a notation clearly indicating all vessels classed by the American Bureau of Shipping.

EXEMPTION OF MARINE INSURANCE ASSOCIATIONS FROM ANTITRUST LAWS SEC. 6107. (a) As used in this section

(1) "Association" means any association, exchange, pool, combination, or other arrangement for concerted action; and

(2) "Marine insurance companies" means any persons, companies, or associations authorized to write marine insurance or reinsurance under the laws of the United States or of a State, territory, district, or possesssion thereof, or the Commonwealth of Puerto Rico.

(3) "Person" shall have the meaning assigned to it by section 4101 (d) of this Act. (b) Nothing contained in the "antitrust laws" as defined in section 1 of the Act of October 15, 1914 (38 Stat. 730, 15 U.S.C. 12), shall be construed as declaring illegal an association entered into by marine insurance companies for the following purposes: To transact a marine insurance and reinsurance business in the United States and in foreign countries and to reinsure or otherwise apportion among its membership the risks undertaken by such association or any of the component members.

VESSEL UTILIZATION AND PERFORMANCE REPORTS

SEC. 6108. (a) The operator of a vessel in waterborne foreign commerce of the United States shall file at such times and in such manner as the Secretary may prescribe by regulations, such report, account, record, or memorandum relating to the utilization and performance of such vessel in commerce of the United States, as the Secretary may determine to be necessary or desirable in order to carry out his functions under this Act. Such report, account, record, or memorandum shall be signed and verified in accordance with regulations prescribed by the Secretary. An operator who does not file the report, account, record, or memorandum as required by this section and the regulations issued hereunder, shall be liable to the United States in a penalty of $50 for each day of such violation. The amount of any penalty imposed for any violation of this section upon the operator of any vessel shall constitute a lien upon the vessel involved in the violation, and such vessel may be libeled therefor in the United States district court for the district in which it may be found. The Secretary may, in his discretion, remit or mitigate any penalty imposed under this section on such terms as he may deem proper. (b) As used in this section, "foreign commerce" shall have the meaning assigned to it in section 3101(c) of this Act.

LIFE EXPECTANCY OF CERTAIN VESSELS; SPECIAL PROVISIONS

SEC. 6109. (a) The provisions of sections 3103 (c) and (f), 3104, 3107, 3108, 3110, 3111 (d) and (g), 3205(b), 3207(b), 3211(c), 3305, 3313, 4202, 4504(a) (3), 4506(a) (1), (2), and (3), 4507 (4) and (5) of this Act, to the extent that they provide for or are based upon a twenty-five year life expectancy of a vessel, shall apply only to vessels delivery by the shipbuilder on or after January 1, 1946, and with respect to those vessels such provisions are effective as of January 1,

(b) With respect to vessels delivered by the shipbuilder before January 1, 1946, the provisions of the Merchant Marine Act, 1936, existing immediately prior to June 12, 1960, shall continue in effect.

(c) With respect to vessels delivered by the shipbuilder on or after January 1, 1946, and before January 1, 1960, depreciation under sections 3103(f), 3108, 3111(d), 3207(b), 3211(c), 3305, 3313, 4202 and 4507 (4) of this Act shall be taken (unless a contract which was in effect on January 1, 1960, otherwise provides) for the period prior to January 1, 1960, at the rate provided by the Merchant Marine Act, 1936, as it existed immediately prior to June 12, 1960, and for the period after January 1,1960, such depreciation shall be taken on the basis of the remaining years of a useful life of twenty-five years unless the vessel is reconstructed or reconditioned, in which event such depreciation, from the time of such reconstruction or re conditioning, shall be taken on the basis of the remaining years of a useful life of the vessel determined jointly by the Secretary of Commerce and the Secretary of the Treasury.

(d) Nothing in this section or in the provisions of this Act referred to in this section shall operate or be interpreted to change from twenty to twenty-five years the provisions of the Merchant Marine Act, 1936, as they existed immediately prior to June 12, 1960, relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier.

TITLE VII-INTERPRETATION, SEVERABILITY, APPROPRIATIONS, AMENDMENTS, AND REPEALS

INTERPRETATION

SEC. 7101. (a) The classification and arrangement of the titles, parts, and sections of this Act have been made for the purpose of convenience and orderly arrangement, and no implication or presumption of a legislative construction is to be drawn therefrom.

(b) Title, part, and section headings in this Act have been included for purposes of convenience and shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning, or intent of the provisions of any title, part, or section hereof.

SEVERABILITY

SEC. 7102. If any provision of this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.

APPROPRIATIONS

SEC. 7103. (a) There are hereby authorized to be appropriated such sums as are necessary to carry out the provisions of this Act.

(b) Nothing in this Act shall be deemed to affect appropriations made to the Federal Maritime Commission or to the Secretary prior to the date of enactment of this Act.

SAVING PROVISIONS

SEC. 7104. (a) Nothing in this Act shall affect any rights or obligations that had vested or accrued, or penalties that were incurred, or proceedings that were begun, under the provisions of laws superseded, or amended, or repealed by this Act.

(b) An order, rule, or regulation in effect under a law replaced by this Act continues in effect under the corresponding provision enacted by this Act until repealed, amended, or superseded.

AMENDMENTS

SEC. 7105. (a) A reference to a law replaced by this Act, including a reference in a regulation, order, or other law, is deemed to refer to the corresponding provision enacted by this Act.

(b) Without limiting the foregoing, the following laws are amended as follows: (1) Section 104(m) of the Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1704(m)), is amended by striking the words "section 212(B) of the Merchant Marine Act, 1936" and inserting in lieu thereof "section 2302 of the Merchant Marine Act of 1966".

(2) Subsection 170(1) of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2210(1)), is amended by striking the words "section 716 of the Merchant

Marine Act, 1936" and inserting in lieu thereof "section 3315 of the Merchant Marine Act of 1966".

(3) Section 8 of the Carriage of Goods by Sea Act (46 U.S.C. 1308) is amended by striking the words "the Shipping Act, 1916" and inserting in lieu thereof "title I and sections 4101-4109 of title IV of the Merchant Marine Act of 1966".

(4) Section 9 of the Carriage of Goods by Sea Act (46 U.S.C. 1309) is amended by striking the words "the Shipping Act, 1916, as amended" and inserting in lieu thereof "title I of the Merchant Marine Act of 1966".

(5) Section 4(c) of the China Trade Act, 1922, as amended (15 U.S.C. 144(e)), is amended by striking the words "section 802 of title 46, SHIPPING" and inserting in lieu thereof "section 1201(b) of the Merchant Marine Act of 1966". (6) Section 352(a)(2) of the Communications Act of 1934 (47 U.S.C. 352(a) (2)) is amended by striking the words "United States Maritime Commission" and inserting in lieu thereof "Department of Commerce".

(7) Section 382 (2) of the Communications Act of 1934 (47 U.S.C. 382(2)) is amended by striking the words "United States Maritime Administration" and inserting in lieu thereof "Department of Commerce".

(8) Section 203 (i) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 484 (i)), is amended to read as follows:

“(i) The Secretary of Commerce shall dispose of surplus vessels of one thousand five hundred gross tons or more which he determines to be merchant vessels or capable of conversion to merchant use, and such vessels shall be disposed of only in accordance with the provisions of the Merchant Marine Act of 1966 and other laws authorizing the sale of such vessels."

(9) Section 602(d) (16) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 474(16)), is amended to read as follows:

"(16) the Secretary of Commerce with respect to the construction, reconstruction, and reconditioning (including outfitting and equipping incident to the foregoing), the acquisition, procurement, operation, maintenance, preservation, sale, lease, or charter of any merchant vessel or of any shipyard, ship site, terminal, pier, dock, warehouse, or other installation necessary or appropriate for the carrying out of any program of the Secretary authorized by law, or nonadministrative activities incidental thereto: Provided, That the Secretary shall to the maximum extent that he may deem practicable, consistent with the fulfillment of the purposes of such programs and the effective and efficient conduct of such activities, coordinate his operations with the requirements of this Act, and the policies and regulation prescribed pursuant thereto;".

(10) Section 1503 (c) (1) (F) of the Internal Revenue Code of 1954 is amended by striking the words "Federal Maritime Board under the Intercoastal Shipping Act, 1933" and inserting in lieu thereof "Federal Maritime Commission under section 1208 of the Meschant Marine Act of 1966".

(11) Section 7701(a) (33) (F) of the Internal Revenue Code of 1954, as amended, is amended by striking the words "Federal Maritime Board under the Intercoastal Shipping Act, 1933" and inserting in lieu thereof "Federal Maritime Commission under section 1208 of the Merchant Marine Act of 1966".

(12) Section 216 of the Interstate Commerce Act, as amended (49 U.S.C. 316(c)), is amended by striking the words "the Shipping Act, 1916, as amended, or the Intercoastal Shipping Act of 1933, as amended" and inserting in lieu thereof "title I of the Merchant Marine Act of 1966".

(13) Section 305(b) of the Interstate Commerce Act, as amended (49 U.S.C. 905(b)), is amended by striking the words "the Shipping Act, 1916, as amended, or the Intercoastal Shipping Act, 1933, as amended" and inserting in lieu thereof "title I of the Merchant Marine Act of 1966".

(14) Section 320 of the Interstate Commerce Act (49 U.S.C. 920) is amended by (A) striking subsections (a) and (b); (B) redesignating subsections (c), (d), and (e) as (a), (b), and (c); and (C) amending subsection (a) (formerly (c)) to read as follows: "(a) Nothing in this part shall be construed to affect the provisions of section 1205 of the Merchant Marine Act of 1966 so as to prevent any water carrier subject to the provisions of this part from entering into any agreement under the provisions of such section 1205 with respect to transportation Lot subject to the provisions of this part in which such carrier may be engaged.".

(15) Section 102(e) of the Renegotiation Act of 1951, as amended (50 U.S. C. App. 1212(e)), is amended by (A) striking the words "section 505(b) of the Merchant Marine Act, 1936, as amended and supplemented" and inserting in lieu thereof "section 3106(b) of the Merchant Marine Act of 1966"; and (B) y striking the words "in the case of the Merchant Marine Act, 1936" and inserting in lieu thereof "in the case of the Merchant Marine Act of 1966".