Sec. 404. Modification to duties relating to equipment and repair of vessels
600 words·~3 min read·
/bill/119/hr/3151/ih/section-404A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 466 of the Tariff Act of 1930 ( 19 U.S.C. 1466 ) is amended— in subsection (a), in the first sentence, by striking 50 per centum on the cost thereof in such foreign country and inserting 70 percent of the cost thereof in such foreign country or, in the case of a foreign country of concern (as defined in section 4 of the ; and Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025 ), 200 percent of the cost thereof in such country by adding at the end the following:
During the period beginning on the date of enactment of the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025 and ending on December 31, 2035, the duty imposed under subsection
(a)shall, except as provided by paragraph (2), not apply to the cost of equipment, or any part of equipment, purchased for, or expenses of repair parts or materials to be used for, or repairs made in a foreign country on, a vessel engaged in foreign trade if the Maritime Administrator confirms that— the vessel— is participating in— the Maritime Security Fleet under chapter 531 of title 46, United States Code; the Cable Security Fleet under chapter 532 of such title; the Tanker Security Fleet under chapter 534 of such title; or the Strategic Commercial Fleet under chapter 536 of such title; or has entered into an emergency preparedness agreement under section 53107 or 53407 of title 46, United States Code, or a contingency agreement under section 53207 of such title, or has otherwise entered into a voluntary agreement and plan of action with the Maritime Administrator as authorized under section 708(c) of the Defense Production Act of 1950 ( 50 U.S.C. 4558(c) ); and the owner or master of the vessel certifies to the Maritime Administrator in writing that a good faith effort was made to purchase equipment or carry out repairs in a shipyard in the United States. Duty-free treatment under paragraph
(1)does not apply with respect to the cost of equipment, or any part of equipment, purchased for repairs made in a foreign country of concern (as defined in section 4 of the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025 ) on a vessel engaged in foreign trade, or expenses of repair parts or materials to be used for such repairs, or other expenses of such repairs. . Not less than 2 years after the date of enactment of this Act, and every 2 years thereafter through December 31, 2035, the Maritime Administrator shall submit to the appropriate committees of Congress a report— describing the number of vessels that paid the duties under section 466 of the Tariff Act of 1930 ( 19 U.S.C. 1466 ), and the location where the repairs described in such section occurred; identifying shipyards of the United States that have capacity to carry out vessel repairs; and describing the extent to which vessels of the United States chose to conduct repairs in such shipyards during the period covered by the report; evaluating the effectiveness of section 466 of the Tariff Act of 1930 ( 19 U.S.C. 1466 ) in encouraging the repair of vessels of the United States in shipyards of the United States; and making recommendations for additional regulatory or legislative steps which could be taken to support the United States vessel repair industrial base. The amendments made by subsection
(a)apply with respect to parts, materials, and equipment purchased, and repairs to vessels initiated, after the date of enactment of this Act.
Connectionstraces to 2
Citation graph
cites case law
Cites 2Cited by 0 across 0 sources