§ 56101. Approval required to transfer vessel to noncitizen
(a)
Restrictions.—
(1)
In General.—
Except as otherwise provided in this section, section
12119 of this title, or section 611 of the Merchant Marine Act, 1936, a person may not, without the approval of the Secretary of Transportation—
(2)
Exceptions.—
Paragraph (1)(A) does not apply to a vessel that has been operated only for pleasure or only as a fishing vessel, fish processing vessel, or fish tender vessel (as defined in section
2101 of this title).
(b)
Approval Before Documentation.—
To promote financing with respect to a vessel to be documented under chapter
121 of this title, the Secretary may grant approval under subsection (a) before the vessel is documented.
(c)
Exceptions.—
Notwithstanding any other provision of this subtitle, the Merchant Marine Act, 1936, or any contract with the Secretary made under this subtitle or that Act, a person may place a vessel under foreign registry without the approval of the Secretary if—
(1)
(A)
the Secretary, in conjunction with the Secretary of Defense, determines that at least one replacement vessel of equal or greater military capability and of a capacity that is equivalent or greater, as measured by deadweight tons, gross tons, or container equivalent units, as appropriate, is documented under chapter
121 of this title by the owner of the vessel placed under foreign registry; and
(d)
Status of Prohibited Transaction.—
A charter, sale, or transfer of a vessel, or of an interest in or control of a vessel, in violation of this section is void.
(e)
Penalties.—
(1)
Criminal penalty.—
A person that knowingly sells, charters, or transfers a vessel, or an interest in or control of a vessel, in violation of this section shall be fined under title 18, imprisoned for not more than 5 years, or both.
(2)
Civil penalty.—
A person that sells, charters, or transfers a vessel, or an interest in or control of a vessel, in violation of this section is liable to the United States Government for a civil penalty of not more than $10,000 for each violation.