Summary
# H.R. 2373: Rebuilding the United States-Flag International Fleet Act
## WHAT THIS BILL DOES
This bill brings back certain laws about requiring cargo to be shipped on U.S. flag vessels (ships registered under U.S. law). It makes changes to rules about transporting agricultural products and other government-purchased goods on American ships instead of foreign ships.
## WHO IT AFFECTS
- The Maritime Administration (a federal agency overseeing shipping)
- The Department of Defense
- The Department of Transportation
- The Department of Agriculture
- Private shipping companies and vessel owners
- Port authorities and marine terminal operators
- Congress
## KEY PROVISIONS
- The law requires that 75 percent of cargo purchased, supplied, or paid for by the U.S. government must be transported on U.S. flag vessels rather than foreign vessels (Sec. 3)
- The President, Secretary of Defense, or Secretary of Transportation can temporarily waive this requirement only if they declare an emergency and confirm that U.S. flag ships cannot handle the cargo at fair and reasonable costs (Sec. 3)
- Emergency waivers last no more than 60 days and can be extended for an additional 30 days, with a total limit of 3 months per fiscal year (Sec. 3)
- Certain agricultural product exports sponsored by the Secretary of Agriculture must be transported on U.S. flag vessels (Sec. 4)
- The Maritime Administration must publish all waiver decisions on its website within 24 hours and in the Federal Register, and notify Congress within 72 hours (Sec. 3)
- The Secretary must report annually to Congress about which federal agencies are using U.S. flag vessels versus foreign vessels for cargo transport (Sec. 2)
## WHAT CHANGES
Two previous laws that had eliminated certain shipping requirements are no longer in effect. Those laws are Section 100124 of the Moving Ahead for Progress in the 21st Century Act and Section 602 of the Bipartisan Budget Act of 2013. Any rules that those laws had removed or changed are now restored.
The percentage requirement for cargo on U.S. flag vessels increases from 50 percent to 75 percent.
Ships must now meet new eligibility standards, including being documented under U.S. law for at least 3 years (with limited exceptions for newer ships under specific conditions).
## IMPORTANT DEFINITIONS
The bill defines "agricultural product" as any food product, including agricultural commodities, specialty crops, or processed food products exported from the United States (Sec. 4)
## EFFECTIVE DATE
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 2373
To reinstate certain laws relating to minimum tonnage of agricultural
commodities and products, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 29, 2023
Mr. GARAMENDI introduced the following bill; which was referred to the Com-
mittee on Armed Services, and in addition to the Committee on Trans-
portation and Infrastructure, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To reinstate certain laws relating to minimum tonnage of
agricultural commodities and products, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Rebuilding the United
4
States-Flag International Fleet Act’’.
5
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•HR 2373 IH
SEC. 2. REINSTATEMENTS OF MINIMUM TONNAGE AND
1
TRANSPORTATION COSTS REIMBURSEMENT.
2
(a) REPEAL UNDER MAP–21.—Section 100124 of
3
the Moving Ahead for Progress in the 21st Century Act
4
(Public Law 112–141) is repealed, and any provision of
5
law amended or repealed by such section is restored or
6
revived as if such section were not enacted into law.
7
(b) REPEAL UNDER BIPARTISAN BUDGET ACT OF
8
2013.—Section 602 of the Bipartisan Budget Act of 2013
9
(Public Law 113–67) is repealed, and any provision of law
10
amended or repealed by such section is restored or revived
11
as if such section were not enacted into law.
12
(c) REPORT ON ADMINISTRATION OF PROGRAMS.—
13
(1) IN
GENERAL.—Chapter 553 of title 46,
14
United States Code, is amended by inserting before
15
section 55302 the following:
16
‘‘§ 55301. Report on administration of programs
17
‘‘(a) IN GENERAL.—The Administrator of the Mari-
18
time Administration shall annually submit to Congress a
19
report on the administration by other Federal depart-
20
ments and agencies of programs subject to section 2631
21
of title 10, United States Code, and that the Adminis-
22
trator determines subject to section 55305 of title 46,
23
United States Code.
24
‘‘(b) CONTENTS.—The report under paragraph (1)
25
shall include—
26
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‘‘(1) gross tonnage by department or agency of
1
cargo (equipment, materials, or agricultural prod-
2
ucts) and by cargo type transported on United
3
States flag vessels versus foreign vessels; and
4
‘‘(2) the total number of United States flag ves-
5
sels versus foreign vessels contracted by each depart-
6
ment or agency.’’.
7
(2) CLERICAL AMENDMENT.—The analysis for
8
chapter 553 of title 46, United States Code, is
9
amended by inserting before the item relating to sec-
10
tion 55302 the following new item:
11
‘‘55301. Report on administration of programs.’’.
SEC. 3. CARGOES PROCURED, FURNISHED, OR FINANCED
12
BY THE UNITED STATES GOVERNMENT.
13
(a) IN GENERAL.—Section 55305 of title 46, United
14
States Code, is amended—
15
(1) by striking subsection (a);
16
(2) in subsection (b) by striking ‘‘50’’ and in-
17
serting ‘‘75’’;
18
(3) by redesignating subsection (b) as sub-
19
section (a);
20
(4) by striking subsection (c) and inserting the
21
following:
22
‘‘(c) WAIVERS.—
23
‘‘(1) IN GENERAL.—Notwithstanding any other
24
provision of law, when the President, the Secretary
25
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•HR 2373 IH
of Defense, or the Secretary of Transportation de-
1
clares the existence of an emergency justifying a
2
temporary waiver of this section or section 55314,
3
the President, the Secretary of Defense, or the Sec-
4
retary of Transportation, following a determination
5
by the Maritime Administrator, acting in the Admin-
6
istrator’s capacity as Director, National Shipping
7
Authority, of the non-availability of qualified United
8
States flag capacity at fair and reasonable rates for
9
commercial vessels of the United States to meet the
10
requirements of this section or section 55314, may
11
waive compliance with such section to the extent, in
12
the manner, and on the terms the Maritime Admin-
13
istrator, acting in such capacity, prescribes, and no
14
other waivers of the requirements of this section or
15
section 55314 shall be authorized.
16
‘‘(2) DURATION OF WAIVER.—
17
‘‘(A) IN
GENERAL.—Subject to subpara-
18
graphs (B) and (C), a waiver issued under this
19
subsection shall be for a period of not more
20
than 60 days.
21
‘‘(B) WAIVER
EXTENSION.—Upon termi-
22
nation of the period of a waiver issued under
23
this subsection, the Maritime Administrator
24
may extend the waiver for an additional period
25
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•HR 2373 IH
of not more than 30 days, if the Maritime Ad-
1
ministrator makes the determinations described
2
in paragraph (1).
3
‘‘(C) AGGREGATE DURATION.—The aggre-
4
gate duration of the period of all waivers and
5
extensions of waivers under this subsection with
6
respect to any one set of events shall not exceed
7
3 months in a fiscal year.
8
‘‘(3) DETERMINATIONS.—The Maritime Admin-
9
istrator shall—
10
‘‘(A) for each determination referred to in
11
paragraph (1), identify any actions that could
12
be taken to enable qualified United States flag
13
capacity to meet the requirements of this sec-
14
tion or section 55314 at fair and reasonable
15
rates for commercial vessels of the United
16
States;
17
‘‘(B) provide notice of each determination
18
referred to in paragraph (1) to the Secretary of
19
Transportation and, as applicable, the Presi-
20
dent or the Secretary of Defense; and
21
‘‘(C) publish each determination referred
22
to in paragraph (1)—
23
‘‘(i) on the website of the Maritime
24
Administration not later than 24 hours
25
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•HR 2373 IH
after notice of the determination is pro-
1
vided to the Secretary of Transportation;
2
and
3
‘‘(ii) in the Federal Register.
4
‘‘(4) NOTICE
TO
CONGRESS.—The Maritime
5
Administrator shall notify—
6
‘‘(A)
the
Committee
on
Commerce,
7
Science, and Transportation of the Senate and
8
the Committee on Transportation and Infra-
9
structure of the House of Representatives of—
10
‘‘(i) any request for a waiver (or an
11
extension thereof) made by the Secretary
12
of Transportation of this section or section
13
55314(a) not later than 72 hours after re-
14
ceiving such a request; and
15
‘‘(ii) the issuance of any such waiver
16
(or an extension thereof), and why such
17
waiver or extension was necessary, not
18
later than 72 hours after such issuance;
19
and
20
‘‘(B)
the
Committee
on
Commerce,
21
Science, and Transportation and the Committee
22
on Armed Services of the Senate and the Com-
23
mittee on Transportation and Infrastructure
24
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•HR 2373 IH
and the Committee on Armed Services of the
1
House of Representatives of—
2
‘‘(i) any request for a waiver (or an
3
extension thereof) made by the Secretary
4
of Defense of this section or section
5
55314(a) not later than 72 hours after re-
6
ceiving such a request; and
7
‘‘(ii) the issuance of any such waiver
8
(or an extension thereof), and why such
9
waiver or extension was necessary, not
10
later than 72 hours after such issuance.’’;
11
(5) by redesignating subsections (c) through (e)
12
as subsections (d) through (f), respectively;
13
(6) by inserting after subsection (a) the fol-
14
lowing:
15
‘‘(b) ELIGIBLE VESSELS.—To be eligible to carry
16
cargo under this section, a privately-owned commercial
17
vessel—
18
‘‘(1) shall be documented under the laws of the
19
United States for at least 3 years; or
20
‘‘(2) may be documented under the laws of the
21
United States for less than 3 years if—
22
‘‘(A) the vessel owner signs an agreement
23
with the Secretary providing that—
24
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•HR 2373 IH
‘‘(i) the vessel shall remain docu-
1
mented under the laws of the United
2
States for at least 3 years; and
3
‘‘(ii) the vessel owner shall, upon re-
4
quest of the Secretary, agree to enroll the
5
vessel in an Emergency Preparedness Pro-
6
gram under chapter 531 or voluntary
7
agreement authorize under section 708 of
8
the Defense Production Act of 1950 (50
9
U.S.C. 4558) and shall remain so enrolled
10
until the vessel ceases to be documented
11
under the laws of the United States;
12
‘‘(B) the vessel—
13
‘‘(i) is a tank vessel that is 10 years
14
of age or less on the date the vessel is doc-
15
umented under the laws of the United
16
States; or
17
‘‘(ii) is any other type of vessel that is
18
15 years of age or less on the date the ves-
19
sel is documented under the laws of the
20
United States; and
21
‘‘(C) the vessel was not originally built in
22
a country which is a proscribed country listed
23
pursuant to part 126 of title 22, Code of Fed-
24
eral Regulations, or successor regulations (com-
25
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•HR 2373 IH
monly known as the ‘International Traffic in
1
Arms Regulations’).
2
‘‘(c) VIOLATION OF AGREEMENT.—
3
‘‘(1) IN GENERAL.—A vessel under an agree-
4
ment described in subsection (b)(2) may be seized by
5
and forfeited to the United States if, in violation of
6
such agreement—
7
‘‘(A) the vessel owner places the vessel
8
under foreign registry; or
9
‘‘(B) a person operates the vessel under
10
the authority of a foreign country.
11
‘‘(2) INAPPLICABILITY OF OTHER LAW.—Sec-
12
tion 12112 of title 46, United States Code, shall not
13
apply to the seizure and forfeiture of a vessel pursu-
14
ant to paragraph (1).’’; and
15
(7) by adding at the end the following:
16
‘‘(g) AUDIT AND REPORT.—In carrying out this sec-
17
tion, the Secretary shall annually—
18
‘‘(1) audit the list of vessels that are operating
19
under an agreement described in subsection (b)(2);
20
and
21
‘‘(2) submit to Congress a report describing—
22
‘‘(A) each of the vessels operating under
23
paragraph (2) of section 55305(b) and each
24
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•HR 2373 IH
agreement signed by the Secretary pursuant to
1
such paragraph;
2
‘‘(B) the results of any audit described in
3
paragraph (1); and
4
‘‘(C) any other pertinent information that
5
the Secretary determines to be of interest to
6
Congress.’’.
7
(b) TECHNICAL AMENDMENT.—
8
(1) CHAPTER
ANALYSIS.—The analysis for
9
chapter 553 of title 46, United States Code, is
10
amended by striking the item relating to subchapter
11
I and inserting the following:
12
‘‘SUBCHAPTER I—GOVERNMENT IMPELLED TRANSPORTATION’’.
(2) CARGOES PROCURED, FURNISHED, OR FI-
13
NANCED BY THE UNITED STATES GOVERNMENT.—
14
Section 55305(d)(2)(D) of title 46, United States
15
Code, is amended by striking ‘‘section 25(c)(1) of
16
the Office of Federal Procurement Policy Act (41
17
U.S.C.
1303(a)(1))’’
and
inserting
‘‘section
18
1303(a)(1) of title 41, United States Code,’’.
19
SEC. 4. TRANSPORTATION REQUIREMENTS FOR CERTAIN
20
EXPORTS SPONSORED BY THE SECRETARY
21
OF AGRICULTURE.
22
Section 55314 of title 46, United States Code, is
23
amended—
24
(1) in subsection (b)—
25
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•HR 2373 IH
(A) in paragraph (1) by inserting ‘‘titles I,
1
II, or III of’’ after ‘‘carried out under’’;
2
(B) in paragraph (4) by striking ‘‘agricul-
3
tural commodities or their products’’ and in-
4
serting ‘‘agricultural products’’;
5
(C) in paragraph (5) by striking ‘‘agricul-
6
tural commodities or their products’’ and in-
7
serting ‘‘agricultural products’’;
8
(D) in paragraph (6) by striking ‘‘agricul-
9
tural commodities or their products’’ and in-
10
serting ‘‘agricultural products’’;
11
(E) in paragraph (7) by striking ‘‘agricul-
12
tural commodities’’ and inserting ‘‘agricultural
13
products’’;
14
(F) by redesignating paragraphs (4), (5),
15
(6), and (7) as paragraphs (6), (7), (8), and
16
(9), respectively; and
17
(G) by inserting after paragraph (3) the
18
following:
19
‘‘(4) carried out under the Food for Progress
20
Act of 1985 (7 U.S.C. 1736o);
21
‘‘(5) carried out under the McGovern-Dole
22
International Food for Education and Child Nutri-
23
tion Program under section 3107 of the Farm Secu-
24
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•HR 2373 IH
rity and Rural Investment Act of 2002 (7 U.S.C.
1
1736o–1);’’; and
2
(2) by adding at the end the following:
3
‘‘(d) SUBMISSION TO CONGRESS.—At least once each
4
fiscal year, the Secretary of Agriculture or the Adminis-
5
trator of the United States Agency for International De-
6
velopment, as applicable, shall submit to the appropriate
7
congressional committees, in writing, a notice of any waiv-
8
er of the requirements of this section and the reasons for
9
granting such waiver.
10
‘‘(e) AGRICULTURAL PRODUCT DEFINED.—In this
11
section, the term ‘agricultural product’ means any food
12
product, including an agricultural commodity (as such
13
term is defined in section 402 of the Food for Peace Act
14
(7 U.S.C. 1732(2))), specialty crop (as such term is de-
15
fined in section 3(1) of the Specialty Crops Competitive-
16
ness Act of 2004 (7 U.S.C. 1621 note)), or processed food
17
product, exported from the United States.’’.
18
SEC. 5. REPORTS TO CONGRESS.
19
(a) REPORT
ON IMPLEMENTATION
OF MILITARY
20
CARGO PREFERENCE.—Not later than 180 days after the
21
date of enactment of this Act, the Secretary of Defense
22
shall submit to Congress a report on the implementation
23
by the Department of Defense of the amendments to sec-
24
tion 2631 of title 10, United States Code, made by section
25
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