U.S. Code > Title 46 Shipping > Subtitle V—Merchant Marine (§§ 50101—58109) > Part D—Promotional Programs (§§ 55101—55605) > CHAPTER 553—PASSENGER AND CARGO PREFERENCES (§§ 55301—55336) > SUBCHAPTER II—EXPORT TRANSPORTATION OF AGRICULTURAL COMMODITIES (§§ 55311—55318) > § 55314. Transportation requirements for certain exports sponsored by the Secretary of Agriculture

§ 55314. Transportation requirements for certain exports sponsored by the Secretary of Agriculture

(a) Minimum Tonnage.—
(1) In general.— In addition to the requirement under section 55305 of this title for the transportation of a percentage of gross tonnage on commercial vessels of the United States, 25 percent of the gross tonnage of agricultural commodities or their products specified in subsection (b) shall be transported each fiscal year on commercial vessels of the United States that—
(A) are necessary for national security; and
(B) if more than 25 years old, were rebuilt within the last 5 years and certified by the Secretary of Transportation as having a useful life of at least 5 years after that rebuilding.
(2) Fiscal year.— To provide for effective and equitable administration of the cargo preference laws, the fiscal year for the purpose of compliance with minimum percentage requirements is the 12-month period beginning October 1 of each year.
(b) Applicable Export Activity.— This section applies to export activity (except inspection or weighing activities, other activities carried out for health or safety, or technical assistance provided in the handling of commercial transactions) of the Secretary of Agriculture or the Commodity Credit Corporation—
(1) carried out under the Food for Peace Act (7 U.S.C. 1691 et seq.);
(2) carried out under section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431);
(3) carried out under the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f–1);
(4) under which agricultural commodities or their products are—
(A) donated through foreign governments or private or public agencies, including intergovernmental organizations; or
(B) sold for foreign currencies or for dollars on credit terms of more than 10 years;
(5) under which agricultural commodities or their products are made available for emergency food relief at less than prevailing world market prices;
(6) under which a cash grant is made directly or through an intermediary to a foreign purchaser to enable the purchaser to obtain United States agricultural commodities or their products in an amount greater than the difference between the prevailing world market price and the United States market price, free along side vessel at a United States port; or
(7) under which agricultural commodities owned or controlled by or under loan from the Corporation are exchanged or bartered for materials, goods, equipment, or services produced in foreign countries, except export activities described in section 55313 (5) of this title.
(c) Additional Requirements.—
(1) Application of section 55305.— The requirement for transportation on vessels of the United States under subsection (a) is subject to the same terms and conditions as provided in section 55305 of this title.
(2) Allocation of commodities.— Subject to paragraph (3), in carrying out this section and section 55305 of this title, the Corporation shall take steps necessary and practicable, and consistent with this section and section 55305, without detriment to any port range to allocate, on the principle of lowest landed cost without regard to the country of registry of the vessel, 25 percent of the bagged, processed, or fortified commodities provided under title II of the Food for Peace Act (7 U.S.C. 1721 et seq.).
(3) Calculations.— In carrying out paragraph (2), first there shall be calculated the allocation of 100 percent of the quantity to be procured on an overall lowest landed cost basis without regard to the country of registry of the vessel, and then there shall be allocated to the Great Lakes port range any cargoes for which it has the lowest landed cost under that calculation. The requirements for transportation on vessels of the United States under this section and section 55305 of this title do not apply to commodities allocated to the Great Lakes port range under paragraph (2). Commodities allocated to the Great Lakes port range under paragraph (2) may not be reallocated or diverted to another port range to meet those requirements to the extent that the total tonnage of commodities to which paragraph (2) applies that is furnished and transported from the Great Lakes port range is less than 25 percent of the total annual tonnage of the commodities furnished.
(4) Awarding contracts.— In awarding a contract for the transportation by vessel of commodities from the Great Lakes port range pursuant to an export activity referred to in subsection (b), an agency—
(A) shall consider expressions of freight interest for any vessel from a vessel operator who meets reasonable requirements for financial and operational integrity; and
(B) may not deny award of the contract to a person based on the type of vessel on which the transportation would be provided (including on the basis that the transportation would not be provided on a liner vessel, as that term is used in the Shipping Act of 1984, as in effect on November 14, 1995), if the person otherwise satisfies reasonable requirements for financial and operational integrity.
(5) Nonavailability of vessels.— A determination of nonavailability of vessels of the United States resulting from the application of this subsection may not reduce the gross tonnage of commodities required by this section and section 55305 of this title to be transported on vessels of the United States.