Statements on Introduced Bills and Joint Resolutions

Floor Speech

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.

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.

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