National Defense Shipyard Protection Act of 1984

(Measure passed House, amended)

National Defense Shipyard Protection Act of 1984 - Amends the Merchant Marine Act, 1936, to allow a vessel operator to receive an operating differential subsidy for a vessel constructed in a foreign shipyard if the capitalized cost of such vessel is not more than the capitalized cost to that owner of a vessel constructed after January 1, 1984, in a U.S. shipyard that is eligible for an operating differential subsidy.

Authorizes the Secretary of Transportation to use the charter construction program to construct ships in U.S. shipyards if shipbuilding construction subsidies do not provide such incentive. Requires the Secretary to set charges for the charter of such vessels dependent upon whether or not such vessels have foreign competition.

Declares that such vessels may only operate on voyages: (1) in the foreign commerce of the United States; (2) in foreign-to-foreign commerce; (3) round-the-world; (4) from the Pacific coast to a port in Europe that includes intercoastal ports of the United States; or (5) from the Atlantic coast to a port in the Orient that includes intercoastal ports of the United States. Requires annual payments to the Secretary of interest and specified costs if such vessels operate in domestic commerce on any voyages.

Establishes a shipbuilding incentive program. Declares a shipyard qualified to receive a shipyard incentive payment if it: (1) is capable of constructing simultaneously at least three seagoing vessels that meet the requirements of the Secretary; and (2) has been designated as a shipyard to which an incentive payment would be in the national interest in order to maintain a sufficient shipyard mobilization base. Sets forth procedures for determining vessel designs, the circumstances under which foreign components may be used on such vessels, and competitive bidding procedures for construction proposals.

Authorizes the Secretary to pay 50 percent of the bid amount to a shipyard qualified to receive a shipyard incentive payment, and to make payment in full when the contract is signed. Provides financial incentives and penalties on the use of such payments.

Declares that vessels constructed with such payments may only operate on voyages allowable to vessels constructed under the charter program.

Establishes the shipyard incentive payment account in the Treasury. Authorizes appropriations for such account for FY 1985 for the charter construction program, the shipyard incentive program, and the vessel trade-in program. Provides that persons receiving money from a sale under the trade-in program must use such monies to construct vessels in the United States and contract for such construction within three months of payment. Provides that if the Secretary acquires under the trade-in program a vessel that was constructed with the aid of a construction differential subsidy, and the vessel to be constructed under such program will operate in domestic commerce, then the Secretary shall reduce the basis of the vessel being acquired by the amount of the subsidy.