SECTION VI : CAPTURE OF NEUTRAL MERCHANT VESSELS AND GOODS
146. Neutral merchant vessels are subject to capture outside neutral waters if they are engaged in any of the activities referred to in paragraph 67 or if it is determined as a result of visit and search or by other means, that they:
(a) are carrying contraband;
(b) are on a voyage especially undertaken with a view to the transport of individual passengers who are embodied in the armed forces of the enemy;
(c) are operating directly under enemy control, orders, charter, employment or direction;
(d) present irregular or fraudulent documents, lack necessary documents, or destroy, deface or conceal documents;
(e) are violating regulations established by a belligerent within the immediate area of naval operations; or f) are breaching or attempting to breach a blockade.
Capture of a neutral merchant vessel is exercised by taking such vessel as prize for adjudication.
14. Neutral waters consist of the internal waters, territorial sea, and, where applicable, the archipelagic waters, of neutral States. Neutral airspace consists of the airspace over neutral waters and the land territory of neutral States.