### Question
How does the law define constructive costs?


### Answer
Under *46 U.S.C. § 40702*, **constructive costs** is defined as:

> the costs of another carrier, other than a controlled carrier, operating similar vessels and equipment in the same or a similar trade

#### Citation:
  - *46 U.S.C. § 40702*
  - Heading: **Subtitle IV-Regulation of Ocean Shipping > Part A-Ocean Shipping > CHAPTER 407-CONTROLLED CARRIERS**

