Section 2
SEC. 2. The following shall be exempted from the payment of the dues herein established: (a) Vessels not discharging or lading cargo and discharging and lading only passengers and their baggage; (b) Vessels belonging to the Government of the United States and to foreign governments, or chartered by the same, if not engaged in trade; (c) Vessels in distress; and (d) Yachts of the United States, the Philippine Islands, or any foreign nation which imposes no tonnage or equivalent taxes on United States and Philippine yachts.