46 USC Ch. 605: DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
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46 USC Ch. 605: DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES
From Title 46—SHIPPINGSubtitle VI—Clearance, Tonnage Taxes, and Duties

CHAPTER 605—DISCRIMINATING DUTIES AND RECIPROCAL PRIVILEGES

Sec.
60501.
Vessels allowed to import.
60502.
Discriminating duty on goods imported in foreign vessels or from contiguous countries.
60503.
Reciprocal suspension of discriminating duties.
60504.
Reciprocal privileges for recreational vessels.
60505.
Retaliatory suspension of commercial privileges.
60506.
Retaliation against British dominions of North America.
60507.
Suspension of free passage through Saint Marys Falls Canal.

        

§60501. Vessels allowed to import

(a) In General.—Except as otherwise provided by treaty, goods may be imported into the United States from a foreign port or place only in—

(1) a vessel of the United States; or

(2) a foreign vessel owned only by citizens or subjects of the country—

(A) in which the goods are grown, produced, or manufactured; or

(B) from which the goods can only be, or most usually are, first shipped for transportation.


(b) Exception for Vessels of Countries Not Maintaining Similar Restrictions.—Subsection (a) does not apply to a vessel of a foreign country that does not maintain a similar restriction against United States documented vessels.

(c) Exception for Vessels Becoming Documented.—Subsection (a) does not apply to a vessel that—

(1) is owned only by citizens of the United States; and

(2) after entering a port of the United States, becomes documented as a vessel of the United States before leaving that port.


(d) Seizure and Forfeiture.—If goods are imported in violation of this section, the goods and the vessel in which they are imported, along with its equipment and other cargo, may be seized by and forfeited to the United States Government.

(Pub. L. 109–304, §9(b), Oct. 6, 2006, 120 Stat. 1679.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
60501(a) 19:130 (1st sentence). Oct. 3, 1913, ch. 16, §IV(J)(2), (3), 38 Stat. 196; Mar. 15, 1915, ch. 171, §1, 38 Stat. 1193; Pub. L. 103–182, title VI, §689(a)(2), Dec. 8, 1993, 107 Stat. 2222.
60501(b) 19:131 (words before "nor").
60501(c) 19:131 (words beginning with "nor").
60501(d) 19:130 (last sentence related to 19:130).

In this section, the word "goods" is substituted for "goods, wares, or merchandise" to eliminate unnecessary words.

In subsection (a)(2), before subparagraph (A), the words "owned only by" are substituted for "truly and wholly belong to" for consistency in the revised title.

In subsection (b), the words "or goods, wares, or merchandise imported in vessels" are omitted as unnecessary because of the wording of subsection (a) of the revised section. The word "restriction" is substituted for "regulation" as being more appropriate.

Subsection (d) is substituted for "All goods, wares, or merchandise imported contrary to this section or section 128 of this title, and the vessel wherein the same shall be imported, together with her cargo, tackle, apparel, and furniture, shall be forfeited to the United States; and such goods, wares, or merchandise, ship, or vessel, and cargo shall be liable to be seized, prosecuted, and condemned in like manner, and under the same regulations, restrictions, and provisions as have been heretofore established for the recovery, collection, distribution, and remission of forfeitures to the United States by the several revenue laws" to eliminate unnecessary words.

§60502. Discriminating duty on goods imported in foreign vessels or from contiguous countries

(a) Imposition of Duty.—A discriminating duty of 10 percent ad valorem (in addition to other duties imposed by law) is imposed on goods—

(1) imported in a vessel not of the United States unless the vessel—

(A) is entitled by law or treaty to enter the ports of the United States on payment of the same duties as are payable on goods imported in a vessel of the United States; or

(B)(i) is owned only by citizens of the United States; and

(ii) after entering a port of the United States, becomes documented as a vessel of the United States before leaving that port; or


(2) produced or manufactured in a foreign country not contiguous to the United States and imported from a country contiguous to the United States, unless imported in the usual course of strictly retail trade.


(b) Seizure and Forfeiture.—If goods are imported without payment of the duty required by this section, the goods and the vessel in which they are imported may be seized by, and forfeited to, the United States Government.

(Pub. L. 109–304, §9(b), Oct. 6, 2006, 120 Stat. 1680.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
60502(a) 19:128. Oct. 3, 1913, ch. 16, §IV(J)(1), 38 Stat. 196; Mar. 15, 1915, ch. 171, §1, 38 Stat. 1193; Pub. L. 103–182, title VI, §689(a)(1), Dec. 8, 1993, 107 Stat. 2222.
  46 App.:146.
60502(b) 19:130 (last sentence related to 19:128). Oct. 3, 1913, ch. 16, §IV(J)(2), 38 Stat. 196.

In this section, the word "goods" is substituted for "goods, wares, or merchandise" to eliminate unnecessary words.

In subsection (a)(1), subparagraphs (A) and (B) are substituted for "but this discriminating duty shall not apply to goods, wares, or merchandise which shall be imported in vessels not of the United States entitled at the time of such importation by treaty or convention or Act of Congress to be entered in the ports of the United States on payment of the same duties as shall then be payable on goods, wares, and merchandise imported in vessels of the United States, nor to goods, wares, and merchandise imported in a vessel owned by citizens of the United States but not a vessel of the United States if such vessel after entering an American port shall, before leaving the same, be documented under chapter 121 of title 46" to eliminate unnecessary words.

Subsection (a)(2) is substituted for "or which being the production or manufacture of any foreign country not contiguous to the United States, shall come into the United States from such contiguous country" and "but this discriminating duty shall not apply . . . nor to such products or manufactures as shall be imported from such contiguous countries in the usual course of strictly retail trade" to eliminate unnecessary words.

Subsection (b) is substituted for the source provision for consistency with section 60501(d) and to eliminate unnecessary words. See note for section 60501(d) in this report.

§60503. Reciprocal suspension of discriminating duties

(a) General Authority.—On receiving satisfactory proof from the government of a foreign country that it has suspended, in any part, the imposition of discriminating duties for any class of vessels owned by citizens of the United States or goods imported in those vessels, the President may proclaim a reciprocal suspension of discriminating duties for the same class of vessels owned by citizens of that country or goods imported in those vessels.

(b) Effective and Expiration Dates.—A suspension under this section takes effect retroactively from the date the President received the proof from the foreign government, and expires when that government stops granting the reciprocal suspension.

(Pub. L. 109–304, §9(b), Oct. 6, 2006, 120 Stat. 1680.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
60503 46 App.:141. R.S. §4228; July 24, 1897, ch. 13, 30 Stat. 214.

In this section, the word "goods" is substituted for "produce, manufactures, or merchandise", "merchandise", and "cargoes" for consistency in the chapter. Other changes are made to eliminate unnecessary words.

§60504. Reciprocal privileges for recreational vessels

When the President is satisfied that yachts owned by residents of the United States and used only for pleasure are allowed to arrive at, depart from, and cruise in the waters of a foreign port without entering, clearing, or paying any duties or fees (including cruising license fees), the Secretary of Homeland Security may allow yachts from that foreign port used only for pleasure to arrive at and depart from the ports of the United States and to cruise in the waters of the United States without paying any duties or fees. However, the Secretary may require foreign yachts to obtain a license to cruise in the waters of the United States. The license shall be in the form prescribed by the Secretary and contain limitations about length of time, direction, place of cruising and action, and other matters the Secretary considers appropriate. The license shall be issued without cost to the yacht.

(Pub. L. 109–304, §9(b), Oct. 6, 2006, 120 Stat. 1680.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
60503 46 App.:104. May 28, 1908, ch. 212, §5, 35 Stat. 425; Aug. 5, 1909, ch. 6, §37 (3d par.), 36 Stat. 112; June 26, 1948, ch. 673, 62 Stat. 1051.

The Secretary of Homeland Security is substituted for the Commissioner of Customs because the functions of the Customs Service and of the Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub. L. 107–296, 116 Stat. 2178). The functions of the Commissioner of Customs previously were vested in the Secretary of the Treasury under section 321(c) of title 31. For prior related transfers of functions, see the transfer of functions note under 46 App. U.S.C. 104.

§60505. Retaliatory suspension of commercial privileges

(a) General Authority.—The President may proclaim a suspension of commercial privileges to vessels of a foreign country when—

(1) vessels of that country have been given the same commercial privileges in the ports and waters of the United States given to vessels of the United States (except the privilege of engaging in coastwise commerce); and

(2) vessels of the United States are denied commercial privileges in the ports or waters of that country given to vessels of that country.


(b) Application.—A suspension under this section shall apply to the same commercial privileges denied to vessels of the United States in the ports or waters of the foreign country, and to the same class of vessels of that country as the class of vessels of the United States denied the privileges.

(c) Effective Date.—The President shall designate the effective date of the suspension in the proclamation.

(d) Penalties.—

(1) Seizure and forfeiture.—If the master, officer, or agent of a vessel of a foreign country does an act for the vessel in the ports or waters of the United States in violation of a proclamation issued under this section, the vessel and the goods on the vessel may be seized by, and forfeited to, the United States Government.

(2) Fine or imprisonment.—A person opposing an official of the Government enforcing this section shall be fined under title 18, imprisoned for not more than 2 years, or both.

(Pub. L. 109–304, §9(b), Oct. 6, 2006, 120 Stat. 1681.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
60505 46 App.:142. June 19, 1886, ch. 421, §17, 24 Stat. 82.

In this section, the words "vessels of the United States" are used instead of both "vessels of the United States" and "American vessels" for consistency in the section. The words "vessels of a foreign country" and "vessels of that country" are substituted for "foreign country whose vessels", "national vessels", "vessels of such foreign country", and similar references, for consistency. The words "ports and waters" and "ports or waters" are substituted for "ports", "harbors, ports, or waters", and "ports, harbors, or waters" for consistency.

In subsection (a), before paragraph (1), the words "on receiving satisfactory information of the continuance of such discriminations against any vessels of the United States" are omitted as unnecessary. In paragraph (1), the words "given the same commercial privileges" are substituted for "placed on the same footing" for clarity and for consistency in the section.

Subsection (b) is substituted for "excluding . . . from the exercise of such commercial privileges in the ports of the United States as are denied to American vessels in the ports of such foreign country, all vessels of such foreign country of a similar character to the vessels of the United States thus discriminated against" for clarity and to eliminate unnecessary words.

Subsection (c) is substituted for "on and after such time as he may indicate" for clarity.

Subsection (d)(1) is substituted for "and on and after the date named in such proclamation for it to take effect, if the master, officer, or agent of any vessel of such foreign country excluded by said proclamation from the exercise of any commercial privileges shall do any act prohibited by said proclamation in the ports, harbors, or waters of the United States for or on account of such vessel, such vessel, and its rigging, tackle, furniture, and boats, and all the goods on board, shall be liable to seizure and to forfeiture to the United States" for consistency in the revised title and to eliminate unnecessary words.

Subsection (d)(2) is substituted for "any person opposing any officer of the United States in the enforcement of this section, or aiding and abetting any other person in such opposition, shall forfeit $800, and shall be guilty of a misdemeanor, and, upon conviction, shall be liable to imprisonment for a term not exceeding two years" because of chapter 227 of title 18.

§60506. Retaliation against British dominions of North America

(a) General Authority.—The President by proclamation may prohibit vessels of the British dominions of North America, their masters and crews, and products of or coming from those dominions, from entering waters, ports, or places of the United States when the President is satisfied that—

(1) fishermen or fishing vessels of the United States in waters, ports, or places of the British dominions of North America are being or recently have been—

(A) denied rights provided by law or treaty;

(B) subjected to unreasonable restrictions in the exercise of those rights; or

(C) otherwise harassed;


(2) fishermen or fishing vessels of the United States, having a permit under the laws of the United States to dock or trade at a port or place in the British dominions of North America, are being or recently have been—

(A) denied the privilege of entering the port or place in the same manner and under the same regulations applicable to trading vessels of the most-favored-nation;

(B) prevented from buying supplies allowed to be sold to trading vessels of the most-favored-nation; or

(C) otherwise harassed; or


(3) other vessels of the United States or their masters or crews in waters, ports, or places of the British dominions of North America are being or recently have been—

(A) denied privileges given to vessels of the most-favored-nation or their masters or crews; or

(B) otherwise harassed.


(b) Coverage and Exceptions.—The President may apply a proclamation under this section to any of the subjects named, and may include exceptions for vessels in distress or need of supplies. The President may change, revoke, and renew the proclamation.

(c) Penalties.—A person violating a proclamation issued under this section shall be fined under title 18, imprisoned for not more than 2 years, or both. A vessel or goods found in waters, ports, or places of the United States in violation of the proclamation may be seized by, and forfeited to, the United States Government.

(Pub. L. 109–304, §9(b), Oct. 6, 2006, 120 Stat. 1681.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
60506 46 App.:143. Mar. 3, 1887, ch. 339, 24 Stat. 475.

In this section, the words "fishermen or fishing vessels of the United States" are substituted for "American fishing vessels or American fishermen" for consistency in the revised title. The words "are or recently have been denied" are substituted for "are or then lately have been denied or abridged" to eliminate unnecessary words.

In subsection (a), the words before paragraph (1) are substituted for "Whenever the President of the United States shall be satisfied . . . then, and in either or all of such cases, it shall be lawful, and it shall be the duty of the President of the United States, in his discretion, by proclamation to that effect, to deny vessels, their masters and crews, of the British dominions of North America, any entrance into the waters, ports, or places of or within the United States . . . whether such vessel shall have come directly from said dominions on such destined voyage or by way of some port or place in such destined voyage elsewhere; and also to deny entry into any port or place of the United States of fresh fish or salt fish or any other product of said dominions, or other goods coming from said dominions to the United States" to eliminate unnecessary words.

In subsection (a)(1)(B), the words "regulations, or requirements" are omitted as unnecessary.

In subsection (a)(1)(C), the words "otherwise harassed" are substituted for "unjustly vexed or harassed in the enjoyment of such rights, . . . or otherwise unjustly vexed or harassed" to eliminate unnecessary words.

In subsection (a)(2), before subparagraph (A), the word "dock" is substituted for "touch" for clarity. In subparagraph (C), the words "otherwise harassed" are substituted for "unjustly vexed or harassed, in respect thereof, or otherwise be unjustly vexed or harassed therein" to eliminate unnecessary words.

In subsection (a)(3)(B), the words "otherwise harassed" are substituted for "unjustly vexed or harassed in respect of the same, or unjustly vexed or harassed therein" to eliminate unnecessary words.

Subsection (b) is substituted for "(with such exceptions in regard to vessels in distress, stress of weather, or needing supplies as to the President shall seem proper)" and "The President may, in his discretion, apply such proclamation to any part or to all of the foregoing named subjects, and may revoke, qualify, limit, and renew such proclamation from time to time as he may deem necessary to the full and just execution of the purposes of this section" to eliminate unnecessary words.

Subsection (c) is substituted for "Every violation of any such proclamation, or any part thereof, is declared illegal, and all vessels and goods so coming or being within the waters, ports, or places of the United States contrary to such proclamation shall be forfeited to the United States; and such forfeiture shall be enforced and proceeded upon in the same manner and with the same effect as in the case of vessels or goods whose importation or coming to or being in the waters or ports of the United States contrary to law may be enforced and proceeded upon. Every person who shall violate any of the provisions of this section, or such proclamation of the President made in pursuance hereof, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by a fine not exceeding $1,000, or by imprisonment for a term not exceeding two years, or by both said punishments, in the discretion of the court." for consistency in the revised title and with chapter 227 of title 18 and to eliminate unnecessary words.

§60507. Suspension of free passage through Saint Marys Falls Canal

(a) Purpose.—The purpose of this section is to secure reciprocal advantages for the citizens, ports, and vessels of the United States.

(b) General Authority.—When the President is satisfied that vessels of the United States, or passengers or cargo being transported to a port of the United States, are prohibited from passing through a canal or lock connected with the navigation of the Saint Lawrence River, the Great Lakes, or their connecting waterways, or burdened in that passage by tolls or other means that are unreasonable in view of the free passage through the Saint Marys Falls Canal allowed to vessels of all countries, the President by proclamation may suspend the right of free passage through the Saint Marys Falls Canal for vessels owned by subjects of the country imposing the prohibition, tolls, or other burdens and for passengers and cargo being transported to the ports of that country, even when carried in vessels of the United States. The suspension shall apply to the extent and for the time the President considers appropriate.

(c) Imposition of Toll.—

(1) In general.—During a suspension under this section, the President shall impose a toll of not more than $2 per ton on cargo and not more than $5 on each passenger.

(2) Exceptions.—Notwithstanding paragraph (1), a toll may not be imposed on passengers or cargo landed at Ogdensburg, New York, or any port west of Ogdensburg and south of a line drawn from the northern boundary of New York through the Saint Lawrence River, the Great Lakes, and their connecting channels to the northern boundary of Minnesota.


(d) Collection of Toll.—

(1) In general.—A toll imposed under this section shall be collected under regulations prescribed by the Secretary of Homeland Security. The Secretary may require the master of a vessel to provide a sworn statement of the amount and kind of cargo, the number of passengers, and the destination of the passengers and cargo.

(2) Proof of landing.—When applicable, the Secretary also may require satisfactory proof that the passengers and cargo were landed at a port described in subsection (c)(2). Until that proof is provided, the Secretary may assume the passengers and cargo were not landed at such a port, and the amount of a toll that otherwise would be imposed is a lien enforceable against the vessel when found in the waters of the United States.

(Pub. L. 109–304, §9(b), Oct. 6, 2006, 120 Stat. 1682.)

Historical and Revision Notes
Revised

Section

Source (U.S. Code)Source (Statutes at Large)
60507(a) 46 App.:144 (1st par. words before 3d comma). July 26, 1892, ch. 248, 27 Stat. 267.
60507(b) 46 App.:144 (1st par. words after 3d comma).
60507(c) 46 App.:144 (last par.).
60507(d) 46 App.:145.

In this section, the word "cargo" is substituted for "cargo", "cargoes", "portions or cargoes", "freight", and "freight of whatever kind or description" for consistency and to eliminate unnecessary words.

Subsection (a) is substituted for "With a view of securing reciprocal advantages for the citizens, ports, and vessels of the United States" to improve the organization of the section.

In subsection (b), the words "and so often as" are omitted as unnecessary. The word "burdened" is substituted for "made difficult or burdensome", the word "unreasonable" is substituted for "reciprocally unjust and unreasonable", the words "the President by proclamation may suspend" are substituted for "he shall have the power, and it shall be his duty, to suspend by proclamation to that effect", the words "even when carried in vessels of the United States" are substituted for "whether carried in vessels of the United States or of other nations", and the words "The suspension shall apply to the extent and for the time the President considers appropriate" are substituted for "for such time and to such extent (including absolute prohibition) as he shall deem just", to eliminate unnecessary words.

In subsection (c)(1), the words "the President shall impose a toll of" are substituted for "tolls shall be levied, collected, and paid as follows, to wit: . . . as shall be from time to time determined by the President" for clarity and to eliminate unnecessary words.

In subsection (c)(2), the word "landed" is substituted for "carried to and landed" to eliminate unnecessary words.

In subsection (d), the Secretary of Homeland Security is substituted for the Commissioner of Customs because the functions of the Customs Service and of the Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub. L. 107–296, 116 Stat. 2178). The functions of the Commissioner of Customs previously were vested in the Secretary of the Treasury under section 321(c) of title 31. For prior related transfers of functions, see the transfer of functions note under 46 App. U.S.C. 145.

In subsection (d)(2), the words "a port described in subsection (c)(2) of this section" are substituted for "some port or place within the limits above named" for clarity.