---
kind: "section"
citation: "46 U.S.C. § 57303"
title: "46"
title_heading: "Shipping"
number: "57303"
heading: "Utility value and tonnage requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/57303"
units:
  - "Subtitle V — Merchant Marine"
  - "Part F — Government-Owned Merchant Vessels"
  - "Chapter 573 — Vessel Trade-In Program"
---

# §57303. Utility value and tonnage requirements

- (a) **Utility Value.—** The utility value of a [new vessel](/usc/46/53301.md?p=a-2) to be acquired under this chapter for operation in the domestic or [foreign commerce](/usc/46/53101.md?p=4) of the [United States](/usc/46/53101.md?p=10) may not be substantially less than that of the [obsolete vessel](/usc/46/57301.md?p=2) acquired in exchange under this chapter.
- (b) **Tonnage.—** If the [Secretary](/usc/46/53101.md?p=8) of Transportation finds that the [new vessel](/usc/46/53301.md?p=a-2) will have a utility value at least equal to that of the [obsolete vessel](/usc/46/57301.md?p=2), the [new vessel](/usc/46/53301.md?p=a-2) may be of lesser gross tonnage than the [obsolete vessel](/usc/46/57301.md?p=2). However, the gross tonnage of the [new vessel](/usc/46/53301.md?p=a-2) must be at least one-third the gross tonnage of the [obsolete vessel](/usc/46/57301.md?p=2).

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1662.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 57303 | 46 App.:1160(c). | June 29, 1936, ch. 858, title V, § 510(c), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161. |