[Congressional Record Volume 157, Number 120 (Tuesday, August 2, 2011)]
[Senate]
[Pages S5263-S5264]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself, Mr. Lieberman, and Mr. Begich):
  S. 1496. A bill to amend title 46, United States Code, to prohibit 
the delegation by the United States of inspection, certification, and 
related services to a foreign classification society that provides 
comparable services to Iran, North Korea, North Sudan, or Syria, and 
for other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Ms. COLLINS. Mr. President, I rise to introduce the Ethical Shipping 
Inspections Act of 2011. This bill would prohibit the Secretary of 
Homeland Security and U.S. Coast Guard from delegating vessel 
inspection and certification authority to a foreign-based 
classification society that also provides these services on behalf of 
the governments of Iran, North Korea, North Sudan, or Syria.

[[Page S5264]]

  I am joined in the effort to close this critical loophole by my 
colleagues, Senators Lieberman and Begich. With the introduction of the 
Ethical Shipping Inspections Act of 2011, we seek to end U.S. 
relationships with foreign-based classification societies that also 
represent nations like the Islamic Republic of Iran.
  Each year, non-governmental classification societies conduct more 
than 4,500 statutory inspections of U.S. flagged vessels to verify that 
these vessels meet international maritime conventions and national 
regulatory requirements. World-wide, more than 100 governments have 
established relationships with classification societies. In addition, 
the vast majority of commercial ships are built to and surveyed for 
compliance with the standards developed by classification societies.
  The relationship between classification societies and the U.S. 
Government was established in statute in the Merchant Marine Act of 
1920, when the Secretary of the Department overseeing the U.S. Coast 
Guard was granted the authority to delegate certain inspection and 
certification services to the American Bureau of Shipping, ABS, or 
another recognized Class Society. In 1996 Congress expanded this 
program to allow foreign-based classification societies to also serve 
on behalf of the U.S. Government in this capacity. Today, there are 
four foreign-based classification societies that have established 
Memorandums of Understanding with the U.S. Coast Guard to conduct these 
inspections on the Coast Guard's behalf.
  While this act would allow this relationship between the U.S. 
Government and foreign-based classification societies to continue, it 
would eliminate a loophole in the law that allows the foreign-based 
classification societies that represent the United States to also 
represent the governments of Iran, North Korea, North Sudan, or Syria. 
Ironically, the current law provides more latitude to foreign-based 
societies than we allow the American Bureau of Shipping. As a U.S.-
based non-profit, non-governmental organization, ABS is restricted from 
providing such services in Iran under existing Iranian Transaction 
Regulations. Yet, the Iran Sanctions Act of 1996, as amended by the 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010, does not prevent foreign-based classification societies from 
representing both the U.S. and Iranian governments.
  With this in mind, my colleagues and I have introduced this 
legislation to prohibit the U.S. from obtaining vessel inspection, 
certification, and related services from a foreign-based class society 
that also provides these services on behalf of the Iranian, North 
Korean, North Sudanese, or Syrian governments. For the United States to 
maintain such relationships runs directly contrary to the spirit of 
United States policy.
  It is important that we all understand the special nature of the 
relationship between classification societies and our Government and 
take action to ensure that our Government is represented by 
classification societies in a manner befitting of our nation's values 
and consistent with U.S. foreign policy. For these reasons, my 
colleagues and I believe it is imperative that we amend the law to 
prohibit this activity, and we urge our colleagues to support this 
important legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1496

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Ethical Shipping Inspections 
     Act of 2011''.

     SEC. 2. LIMITATION ON DELEGATION OF INSPECTION, 
                   CERTIFICATION, AND RELATED SERVICES.

       Section 3316 of title 46, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e) The Secretary may not make a delegation, and shall 
     revoke an existing delegation made, to a foreign 
     classification society pursuant to subsection (b) or (d) to 
     provide inspection, certification, or related services if the 
     Secretary of State determines that the foreign classification 
     society provides comparable services--
       ``(1) in Iran, North Korea, North Sudan, or Syria; or
       ``(2) for the government of Iran, North Korea, North Sudan, 
     or Syria.''.
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