563 



(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 em- 

 ployees of such corportation 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; 



(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 

 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 coast- 

 wise laws, except as a service for a parent or sub- 

 sidiary corporation and except when such vessel is 

 under demise or bareboat charter at prevailing rates 

 for use otherwise than in the domestic noncon- 

 tiguous trades from any such corporation to a com- 

 mon or contract carrier subject to chapter 12 of 

 title 49, which otherwise qualifies as a citizen under 

 section 2 of the Shipping Act, 1916, as amended, 

 and which is not connected, directly or indirectly, 

 by way of ownership or control with such 

 corporation. 



As used herein (1). the term "parent" means a 

 corporation which controls, directly or indirectly, 

 at least 50 per centum of the voting stock of such 

 corporation, and (2). the term "subsidiary" means 

 a corporation not less than 50 per centum of the 

 voting stock of which is controlled, directly or in- 

 directly, 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, and there 

 has been filed with the Secretary of the Treasury a 

 certificate as hereinafter provided. 



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 sec- 

 tion, 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 require- 

 ments, penalties, and forfeitures as may be appli- 

 cable in the case of vessels built in the United States 

 and otherwise documented or exempt from docu- 

 jnentation under the laws of the United States. 



A corporation seeking hereunder 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 the 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 section above set forth. A "parent" or "sub- 

 sidiary" 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 

 section above set forth, before such corporation may 

 transport any merchandise or passengers for such 

 parent or subsidiary. If any material matter of 

 fact 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 hereunder in 

 respect to which the oath shall have been made. 

 If any vessel shall transport merchandise for hire 

 in violation of this section, such merchandise shall 

 be forfeited to the United States. If any vessel 

 shall transport passengers for hire in violation of 

 this section, such vessel shall be subject to a penalty 

 of $200 for each passenger so transported. Any 

 penalty or forfeiture incurred under this section may 

 be remitted or mitigated by the Secretary of the 

 Treasury under the provisions of section 7 of this 

 title. 



Any corporation which has filed a certificate with 

 the Secretary of the Treasury as provided for herein 

 shall cease to be qualified under this section if there 

 is any change in its status whereby it no longer 

 meets the conditions above set forth, and any docu- 

 ments theretofore issued to it, pursuant to the pro- 

 visions of this section, shall be forthwith sur- 

 rendered by it to the Secretary of the Treasury. 

 (June 5, 1920, ch. 250, § 27A, as added Sept. 2, 1958, 

 Pub. L. 85-902, 72 Stat. 1736.) 



4. Departure of Vessels During a War 

 18 U.S.C. 965-967 



§965. Verified statements as prerequisite to vessel's 

 departure. 



(a) During a war in which the United States Is a 

 neutral nation, every master or person having charge 

 or command of any vessel, domestic or foreign, 

 whether requiring clearance or not, before departure 



of such vessel from port shall. In addition to the facts 

 required by sections 91. 92, and 94 of Title 46 to be 

 set out in the masters' and shlpi>ers' manifests be- 

 fore clearance will be issued to vessels bound to for- 

 eign ports, deliver to the collector of customs for the 



84-049 O - 77 - 38 



