46 U.S.C. § 57506 — Minimum selling price of vessels
submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 152 words · no verdicts yet
A vessel built under this law cannot be sold for less than the price this section sets. For foreign trade, the floor is the estimated foreign construction cost, minus depreciation. For domestic trade, it's the U.S. construction cost, minus depreciation, based on a 25-year or 20-year vessel life.
(a) In General. A vessel* built under this subtitle or under the Merchant Marine Act, 1936, may not be sold by the Secretary of Transportation for less than the minimum price this section sets.
(b) Operation in Foreign Trade. If the vessel will run in foreign trade, the minimum price is the estimated cost of building it abroad (not counting national-defense features), figured as of the date the construction contract was signed, minus depreciation under subsection (d).
(c) Operation in Domestic Trade. If the vessel will run in domestic trade, the minimum price is the actual U.S. construction cost (not counting national-defense features), minus depreciation under subsection (d).
(d) Depreciation. Depreciation under (b) and (c) is figured using: (1) a 25-year life for dry-cargo and passenger vessels; and (2) a 20-year life for tankers and other bulk-liquid carriers.
A vessel* constructed under this subtitle or the Merchant Marine Act, 1936, may not be sold by the Secretary of Transportation for less than the price specified in this section.
If the vessel is to be operated in foreign trade, the minimum price is the estimated foreign construction cost (exclusive of national defense features) determined as of the date the construction contract is executed, less depreciation under subsection (d).
If the vessel is to be operated in domestic trade, the minimum price is the cost of construction in the United States (exclusive of national defense features), less depreciation under subsection (d).
Depreciation under subsections (b) and (c) shall be based on—
a 25-year life for dry-cargo and passenger vessels; and
a 20-year life for tankers and other bulk liquid carrier vessels.
Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
- 2006Enacted · Pub. L. 109-304 · 120 Stat. 1665
A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-304 on 2006-10-06.
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