46 USC 55102: Coastwise Cargo Rules, Penalties and Waivers

46 U.S.C.55102 restricts transportation of merchandise between points in the United States to which the coastwise laws apply, including transportation via a foreign port, unless the vessel satisfies the governing requirements. This cargo rule is different from the personal-injury law also commonly called the Jones Act. [1]

What movement is covered?

Identify the merchandise, loading and unloading points, and complete route. A foreign-port stop does not automatically avoid the statute because its text addresses transport either directly or through a foreign port. The legal status of each point can matter. [1]

Passenger transportation, vessel operation, and offshore movements may involve other provisions. Do not treat every boat trip as the same merchandise transaction or assume that a point lies inside the framework merely from a general map description.

Vessel qualification

The statute addresses citizen ownership and coastwise documentation or qualifying exceptions. The coastwise-endorsement framework in section 12112 includes construction and other eligibility requirements. Registration somewhere in the United States is not automatically proof of every coastwise qualification. [1][2]

Verify the vessel’s actual documentation, ownership, construction history where relevant, and authorization for the planned trade. A charter contract or broker’s assurance is not a substitute for the legal requirements.

Penalties

The statute provides for forfeiture of merchandise or an alternative recovery based on its value or actual transportation cost, whichever is greater, under its terms. Identify who transported or procured the transportation and the particular alleged violation. The consequence is not necessarily a small fixed ticket per voyage. [1]

Other customs, documentation, or transport statutes can create separate obligations. Administrative mitigation procedures have their own requirements and should not be assumed to erase the underlying rule automatically.

Example: domestic cargo routed abroad

A shipper proposes sending cargo between covered domestic points with an intermediate foreign stop. The route must still be assessed under section 55102 rather than presumed outside it. If the vessel is not qualified, investigate a genuine statutory exception or other lawful arrangement before shipment.

Waivers require actual authority

Waivers under section 501 follow specific statutory criteria and procedures, including national-defense-related authority. Economic convenience, an emergency label, or a pending private request does not itself establish that a waiver has been granted. Read the actual decision and its scope before relying on it. [3]

Preserve route, cargo, documentation, contract, and authorization records. A prospective compliance review is more useful than trying to reconstruct those facts after a seizure or penalty notice.

Customs enforcement can also involve section 1595a seizure procedures. Procurement-related fraud follows a separate criminal framework.

Primary sources

  1. 46 U.S.C. § 55102: Transportation of merchandise
  2. 46 U.S.C. § 12112: Coastwise endorsement
  3. 46 U.S.C. § 501: Waiver of navigation and vessel-inspection laws

Sources checked: October 31, 2026.