HR4839-119

What This Bill Does

The Merchant Marine Allies Partnership Act creates a controlled exception to coastwise trade restrictions. A qualified vessel must be wholly owned by nationals or the government of a country on the Foreign Ally Shipping Registry, or by those entities with a U.S. national, and must be flagged in the United States or a registry country. The Transportation Secretary may authorize the vessel for up to five years to carry merchandise between U.S. coastwise points, directly or through a foreign port, and may renew the authorization. The authorization must be revoked if the vessel stops qualifying, including when a country is removed from the registry, and owners must notify DOT within 30 days of changes affecting qualification. The State Secretary, consulting the Coast Guard Commandant, maintains and may remove countries from the registry and reports removals to Congress. The Coast Guard may not enforce certain citizenship or credentialing requirements against U.S. or allied-country nationals employed on qualified vessels under an authorization. The bill also amends the Tariff Act to exempt the cost of repairs made in registry-country shipyards for documented vessels from vessel repair duty.

Who Benefits and How

Allied country vessel owners benefit from renewable access to U.S. coastwise merchandise transportation if their vessels qualify. U.S. coastwise shippers benefit if registry-country vessels add capacity on domestic routes. Allied shipyards benefit because repair costs in registry-country yards become exempt from the documented-vessel repair duty. Allied mariners benefit because Coast Guard citizenship and credentialing rules cannot be enforced against covered workers on authorized vessels.

Who Bears the Burden and How

U.S. shipbuilders face more competition from vessels built or rebuilt in registry countries. Jones Act vessel operators face competitive pressure from authorized allied-country vessels in coastwise trade. Transportation Department maritime offices must review authorizations, renewals, revocations, and owner change notices. State Department registry officials must decide which countries qualify as allies and report removals to Congress.

Key Provisions

• Creates a Foreign Ally Shipping Registry for coastwise trade eligibility.
• Authorizes qualified allied-country vessels for renewable five-year coastwise trade periods.
• Requires revocation and owner notice rules when a vessel or registry country stops qualifying.
• Limits Coast Guard citizenship and credentialing enforcement for U.S. or allied nationals on covered vessels.
• Exempts documented-vessel repairs in registry-country shipyards from vessel repair duty.