§ 53732. Eligible export vessels

(a) Applicable Terms.— The Administrator may guarantee an obligation for an eligible export vessel in accordance with—

(1) the terms applicable under this chapter for vessels documented under the laws of the United States; or

(2) other terms the Administrator determines are more favorable than those terms and compatible with export credit terms offered by foreign governments for the sale of vessels built in foreign shipyards.

(b) Interagency Council.—

(1) Establishment.— There is an interagency council to carry out this section.

(2) Composition.— The council is composed of the following individuals or their designees:

(A) The Administrator, who is the chairman of the council.

(B) The Secretary of the Treasury.

(D) The Assistant to the President for Economic Policy.

(E) The United States Trade Representative.

(F) The President and Chairman of the Export-Import Bank of the United States.

(3) Functions.— The council shall—

(A) obtain information on shipbuilding loan guarantees, direct and indirect subsidies, and other favorable treatment of shipyards provided by foreign governments to shipyards in competition with United States shipyards;

(B) consult regularly with United States shipbuilders to obtain the essential information about international shipbuilding competition on which to set terms for loan guarantees under subsection (a)(2); and

(4) Annual report.— Not later than January 31 of each year, the Administrator shall submit to Congress a report on activities of the Administrator under this section during the preceding year. The report shall include—

(A) documentation of sources of information about assistance by governments of other countries to shipyards in those countries; and

(B) a summary of recommendations made to the Administrator during the preceding year about applications submitted to the Administrator during that year for loan guarantees to construct eligible export vessels.

(1) Benefit to shipbuilding industry.— The Administrator may not guarantee or make a commitment to guarantee an obligation for an eligible export vessel unless the Administrator finds that the construction, reconstruction, or reconditioning of the vessel will aid in the transition of United States shipyards to commercial activities or will preserve shipbuilding assets that would be essential in time of war or national emergency.

(2) Priority of documented vessels.— The Administrator may not make a commitment to guarantee an obligation for an eligible export vessel unless the Administrator determines that making the commitment will not result in denial of an economically sound application for a commitment to guarantee an obligation for a vessel documented under the laws of the United States and operating in the domestic or foreign commerce of the United States. The Administrator has sole discretion in making the determination. In making the determination, the Administrator shall consider—

(A) the status and economic soundness of pending applications for commitments to guarantee obligations for vessels documented under the laws of the United States that are operating or will be operating in the domestic or foreign commerce of the United States; and

(B) the amount of guarantee authority available.

(d) Restriction on Transfer of Vessel.— The Administrator may not guarantee or make a commitment to guarantee an obligation for an eligible export vessel unless the owner of the vessel agrees with the Administrator that the vessel will not be transferred to a country designated by the Secretary of Defense as a country whose interests are hostile to the interests of the United States.

(e) Review by Secretary of Defense.—

(1) Notification.— The Administrator shall promptly notify the Secretary of Defense of the receipt of an application for a loan guarantee for an eligible export vessel.

(2) Disapproval.— The Secretary of Defense, within 30 days after receiving the notice, may disapprove the guarantee based on an assessment of the potential use of the vessel in a manner that may harm the national security interests of the United States. The Secretary of Defense may not disapprove a guarantee solely because of the type of vessel to be constructed.

(3) Delegation.— The authority of the Secretary of Defense to disapprove a guarantee under this subsection may be delegated only to a civilian officer of the Department of Defense appointed by the President by and with the advice and consent of the Senate.

(4) Prohibition.— The Administrator may not make a loan guarantee disapproved by the Secretary of Defense under this subsection.

(f) Expiration of Authority.— The Administrator may not issue a commitment to guarantee an obligation for an eligible export vessel under this chapter after the last date on which such a commitment may be issued under any treaty or convention entered into after November 30, 1993, that prohibits guarantee of such an obligation.

U.S. Code

§ 53732. Eligible export vessels