Transportation of certain merchandise

(a) In general Section 55102 of title 46, United States Code, is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following: (c) Noncontiguous trade exemption (1) In general Subsection (b) shall not apply with respect to transportation in noncontiguous trade of merchandise on a foreign qualified freight vessel for which the Secretary of Transportation has issued a certificate of documentation under chapter 121. (2) Definitions In this subsection: (A) Foreign qualified freight vessel The term foreign qualified freight vessel means a freight vessel (as that term is defined in section 2101) of not less than 1,000 gross tons that— (i) was not built in the United States (or if rebuilt, not rebuilt in the United States); (ii) is registered in a foreign country; and (iii) employs United States citizens to the extent required of vessels registered under section 12102. (B) Noncontiguous trade The term noncontiguous trade has the meaning given such term in section 53501.. (b) Coastwise endorsements Section 12112(a)(2)(B) of title 46, United States Code, is amended— (1) in clause (ii), by striking or; (2) in clause (iii), by striking and and inserting or; and (3) by adding at the end the following: (iv) is a foreign qualified freight vessel (as defined in section 55102(c)) used for transportation referred to in section 55102(c) for which the Secretary of Transportation has issued a certificate of documentation; and. (c) Foreign transfer Section 56101(a)(2) of title 46, United States Code, is amended— (1) by striking Paragraph (1)(A) and inserting: (A) Fishing vessel Paragraph (1)(A); and (2) by adding at the end the following: (B) Foreign qualified freight vessel Paragraph (1) does not apply with respect to a foreign qualified freight vessel for which the Secretary has issued a certificate of documentation after the date of enactment of the Noncontiguous Shipping Relief Act of 2024 and that is used solely for transportation referred to in section 55102(c). (C) Foreign registry A foreign qualified freight vessel may be placed under foreign registry without the approval of the Secretary at any time after such vessel is issued a certificate of documentation. At such time as such vessel is placed under foreign registry, the Secretary shall revoke the certificate of documentation issued by the Secretary..