1. (a) In General.— Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not transport passengers between ports or places in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel—

   1. (1) is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and
   2. (2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement.
2. (b) Penalty.— The penalty for violating subsection (a) is $300 for each passenger transported and landed.

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1633.)

This section is substituted for the source provision for consistency with section 55102. See 19 C.F.R. §§ 4.80, 4.80a (2004).

In subsection (b), the penalty amount reflects the adjustment for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note). See 19 C.F.R. § 4.80(b)(2) (2004).