United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2004-02-27 monographic deposited born digital 43 p. GA 1.13:GAO-04-421 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-04-421 P0b002ee1803a5891 f:d04421 DGPO 2010-08-12 2011-03-23 GAOREPORTS-GAO-04-421 machine generated eng fdlp REPORT GAOREPORTS-GAO-04-421 GAO-04-421 Competition International relations Marine transportation operations Maritime law Monopolies Other Written Product A09373

No large U.S.-flagged cruise ships (ships registered in the U.S. that are U.S.-built, U.S.-owned, and U.S. crewed) are in operation. Foreignflagged vessels cruising to foreign ports serve most of the U.S. demand for cruises. However, Norwegian Cruise Line (NCL) recently obtained an exemption from U.S. maritime law to operate three foreign-built ships under the U.S. flag in Hawaii. Cruise lines and others have raised concerns over the advantage the exemption might confer to NCL, since foreign-flagged competitors are unable to offer the same itineraries due to the Passenger Vessel Services Act (PVSA), which prevents foreign vessels from transporting passengers solely between U.S. ports. Concerns have also been raised over the effect this exemption might have on future attempts to grow the U.S.-flag cruise vessel fleet, since potential U.S.-flag competitors would need to build ships in the United States, presumably at higher cost. GAO was asked to (1) review the original intent of the PVSA and rulings and decisions regarding it, (2) determine if the exemption will affect the implementation of the PVSA or other maritime laws, (3) assess the potential effects of the exemption on competition and entry into the U.S. domestic cruise market, and (4) assess the potential economic effects of granting other cruise lines similar exemptions. The Departments of Homeland Security and Transportation generally agreed with the findings in this report. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-04-421/html/GAOREPORTS-GAO-04-421.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-04-421/pdf/GAOREPORTS-GAO-04-421.pdf GAO-04-421 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-04-421 Other Written Product GAO-04-421; Maritime Law Exemption: Exemption Provides Limited Competitive Advantage, but Barriers to Further Entry under U.S. Flag Remain; Competition International relations Marine transportation operations Maritime law Monopolies Title 26 Section 883 26 U.S.C. 883 Title 46 Section 8103(a) Title 46 Appendix 883 46 U.S.C. 8103(a) 46 U.S.C. App. 883 Title 346 Appendix 289 346 U.S.C. App. 289 Title 446 Chapter 121 446 U.S.C. Chapter 121 Title 946 Section 12102 946 U.S.C. 12102 Title 1246 Appendix 883 1246 U.S.C. App. 883 Title 1746 Appendix 883 1746 U.S.C. App. 883 Title 2946 Appendix 289a 2946 U.S.C. App. 289a Title 3046 Appendix 289c 3046 U.S.C. App. 289c Title 3946 Section 8104 3946 U.S.C. 8104 Title 4446 Section 12102 4446 U.S.C. 12102 Volume 41 Page 988 41 Stat. 988 Title 19 Part 4(b)(2) 19 CFR Part 4(b)(2)