1625-0027 Stat/Authority

CFR-2011-title46-vol2-part68.pdf

Vessel Documentation

1625-0027 Stat/Authority

OMB: 1625-0027

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Coast Guard, Dept. of Homeland Security

Pt. 68

TABLE 67.550—FEES
Activity

Reference

Fee

Applications:
Initial certificate of documentation .............................................................. Subpart K ..............................
$133.00
Exchange of certificate of documentation .................................................. do ...........................................
84.00
Return of vessel to documentation ............................................................. do ...........................................
84.00
Replacement of lost or mutilated certificate of documentation .................. do ...........................................
50.00
Approval of exchange of certificate of documentation requiring mort- do ...........................................
24.00
gagee consent.
Trade endorsement(s):
Coastwise endorsement ...................................................................... Subpart B ..............................
29.00
Coastwise Bowaters endorsement ...................................................... 46 CFR part 68 .....................
29.00
Fishery endorsement ........................................................................... do ...........................................
12.00
Registry endorsement .......................................................................... do ...........................................
none
Recreational endorsement ................................................................... do ...........................................
none
Note: When multiple trade endorsements are requested on the same application, only the single highest applicable endorsement fee will be charged, resulting in a maximum endorsement fee of $29.00
Evidence of deletion from documentation .................................................. Subpart L ...............................
15.00
Late renewal fee ......................................................................................... do ...........................................
5.00
Waivers:
Original build evidence ............................................................................... Subpart F ...............................
15.00
Bill of sale eligible for filing and recording .................................................. Subpart E ..............................
15.00
Miscellaneous applications:
Wrecked vessel determination .................................................................... Subpart J ...............................
555.00
New vessel determination ........................................................................... Subpart M ..............................
166.00
Rebuild determination—preliminary or final ................................................ do ...........................................
450.00
Filing and recording:
Bills of sale and instruments in nature of bills of sale ................................ Subpart P ..............................
8.00(1)
Mortgages and related instruments ............................................................ Subpart Q ..............................
4.00(1)
Notice of claim of lien and related instruments .......................................... Subpart R ..............................
8.00(1)
Certificate of compliance:
Certificate of compliance ............................................................................ 46 CFR part 68 .....................
55.00
Miscellaneous:
Abstract of Title ........................................................................................... Subpart T ...............................
25.00
Certificate of ownership .............................................................................. do ...........................................
125.00
Attachment for each additional vessel with same ownership and en- do ...........................................
10.00
cumbrance data.
Copy of instrument or document ................................................................ (2) ...........................................
(2)
1 Per

page.
will be calculated in accordance with 49 CFR 7.95.

2 Fees

[CGD 89–007, CGD 89–007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65243, Dec. 13, 1993, as amended by
CGD 95–014, 60 FR 31605, June 15, 1995; CGD 95–070, 60 FR 40242, Aug. 7, 1995; USCG–2007–28098,
72 FR 42313, Aug. 2, 2007; USCG–2009–0702, 74 FR 49230, Sept. 25, 2009]

PART 68—DOCUMENTATION
VESSELS:
EXCEPTIONS
COASTWISE QUALIFICATION

OF
TO

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Subpart A—Regulations for Engaging in
Limited Coastwise Trade
Sec.
68.1 Purpose of subpart.
68.3 Definitions for the purposes of this subpart.
68.5 Requirements for citizenship under 46
U.S.C. App. 833–1.
68.7 Qualification as an 883–1 corporation.
68.9 Qualification as a parent or subsidiary.
68.11 Cessation of qualifications.
68.13 Privileges conferred—documentation
of vessels.
68.15 Privileges conferred—operation of vessels.
68.17 Restrictions.

68.19 Application by an 883–1 corporation to
document a vessel.
APPENDIX A TO SUBPART A OF PART 68—OATH
FOR THE QUALIFICATION OF CORPORATION
AS A CITIZEN OF THE UNITED STATES
UNDER THE ACT OF SEPT. 2, 1958 (46 U.S.C.
APP. 883–1)
APPENDIX B TO SUBPART A OF PART 68—OATH
OF PARENT OR SUBSIDIARY CORPORATION
ACT OF SEPTEMBER 2, 1958 (46 U.S.C. APP.
883–1)

Subpart B—Documentation of Certain
Vessels for Oil Spill Cleanup
68.25 Purpose and scope.
68.27 Definitions for purpose of this subpart.
68.29 Citizenship requirements for limited
coastwise endorsement.
68.31 Vessel eligibility requirements for
limited coastwise endorsement.

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§ 68.1

46 CFR Ch. I (10–1–11 Edition)

68.33 Privileges of a limited coastwise endorsement.
68.35 Application to document a vessel
under this subpart.
68.37 Cessation of qualifications.

Subpart A—Regulations for Engaging in Limited Coastwise
Trade

APPENDIX A TO SUBPART B OF PART 68—OATH
FOR QUALIFICATION OF A NOT-FOR-PROFIT
OIL SPILL RESPONSE COOPERATIVE
APPENDIX B TO SUBPART B OF PART 68—OATH
FOR DOCUMENTATION OF VESSELS FOR USE
BY A NOT-FOR-PROFIT OIL SPILL RESPONSE COOPERATIVE

SOURCE: CGD 80–107, 47 FR 27511, June 24,
1982. Redesignated and amended by USCG–
2005–20258, 71 FR 61418, 61419, Oct. 18, 2006]

Subpart C—Vessels With a Coastwise Endorsement Issued on or After August 9,
2004, That Are Demised Chartered to
Coastwise Qualified Citizens
68.50 Purpose and applicability.
68.55 Definitions.
68.60 Eligibility of a vessel for a coastwise
endorsement under this subpart.
68.65 Annual ownership certification.
68.70 Application procedure for vessels
other than barges to be operated in
coastwise trade without being documented.
68.75 Application procedure for barges to be
operated in coastwise trade without
being documented.
68.80 Invalidation of a coastwise endorsement.

Subpart D—Vessels With a Coastwise Endorsement Issued Before August 9,
2004, and Their Replacements That Are
Demise Chartered to Coastwise-Qualified Citizens
68.100 Purpose and applicability.
68.103 Definitions.
68.105 Eligibility of a vessel for a coastwise
endorsement under this subpart.
68.107 Application procedure for vessels
other than barges to be operated in
coastwise trade without being documented.
68.109 Application procedure for barges to
be operated in coastwise trade without
being documented.
68.111 Invalidation of a coastwise endorsement.

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AUTHORITY: 14 U.S.C. 664; 31 U.S.C. 9701; 42
U.S.C. 9118; 46 U.S.C. 2103, 2110; 46 U.S.C. app.
876; Department of Homeland Security Delegation No. 0170.1.
SOURCE: CGD 80–107, 47 FR 27511, June 24,
1982, unless otherwise noted.

§ 68.1 Purpose of subpart.
This subpart contains citizen ownership requirements and procedures to
allow documentation of vessels that do
not meet the requirements of part 67 of
this chapter. The requirements are for
corporations engaged in a manufacturing or mineral industry in the
United States.
[USCG–2005–20258, 71 FR 61419, Oct. 18, 2006]

§ 68.3 Definitions for the purposes of
this subpart.
Act means the Act of September 2,
1958 (46 U.S.C. App. 883–1).
883–1 citizen or 883–1 corporation
means a corporation which qualifies for
the special citizenship status created
by the Act of September 2, 1958 (46
U.S.C. App. 883–1).
Parent corporation means one incorporated under the laws of the United
States, or any state, territory, or district of the United States, which controls (directly or indirectly) at least 50
percent of the voting stock of another
corporation.
Subsidiary corporation means one incorporated under the laws of the
United States, or any state, territory,
or district of the United States, which
has not less than 50 percent of its voting stock controlled (directly or indirectly) by another corporation.
[CGD 80–107, 47 FR 27511, June 24, 1982, as
amended by CGD 95–028, 62 FR 51203, Sept. 30,
1997. Redesignated by USCG–2005–20258, 71 FR
61418, Oct. 18, 2006]

§ 68.5 Requirements for citizenship
under 46 U.S.C. App. 883–1.
A corporation seeking to establish its
citizenship under the Act of September
2, 1958 (46 U.S.C. App. 883–1) must meet
the following criteria as specified in
the Act:
(a) It must be incorporated under the
laws of the United States, or any state,
territory, district, or possession of the
United States;

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Coast Guard, Dept. of Homeland Security
(b) A majority of the officers and directors of the corporation must be citizens of the United States;
(c) Not less than 90 percent of the
employees of the corporation must be
residents of the United States;
(d) Such corporation must be engaged
primarily in a manufacturing or mineral industry in the United States or
any territory, district, or possession of
the United States;
(e) The aggregate book value of the
vessels owned by the corporation must
not exceed 10 percent of the aggregate
book value of the assets of the corporation; and
(f) The corporation must purchase or
produce in the United States, its territories or possessions, not less than 75
percent of the raw materials used or
sold in its operations.
NOTE: A corporation which qualifies as an
883–1 citizen by meeting the criteria in paragraph (a) of this section is not thereby precluded from qualifying as a citizen under any
definition in part 67 upon compliance with
all applicable requirements.
[CGD 80–107, 47 FR 27494, June 24, 1982, as
amended at 47 FR 35488, Aug. 16, 1982; CGD
95–028, 62 FR 51203, Sept. 30, 1997. Redesignated by USCG–2005–20258, 71 FR 61418, Oct.
18, 2006]

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§ 68.7 Qualification as an 883–1 corporation.
(a) To be formally qualified as an 883–
1 corporation for all purposes under the
Act, a corporation which meets the requirements of § 68.5 must file with the
Director, National Vessel Documentation Center a certificate under oath as
described in appendix A.
(b) Upon the filing of the certificate
required under paragraph (a) of this
section, the Director, National Vessel
Documentation Center will furnish the
corporation a Certificate of Compliance which is valid for a period of 3
years from the date of its issuance, unless there is a change in corporate status requiring a report under § 68.11(a).
On or before the date of expiration of
the Certificate of Compliance, a new
certificate under oath as described in
appendix A of this subpart must be

§ 68.11

filed with the Director, National Vessel
Documentation Center.
(Approved by the Office of Management and
Budget under control number 1625–0027)
[GCD 89–007; GCD 89–007a, 58 FR 60266, Nov.
15, 1993, 58 FR 65131, Dec. 13, 1993, as amended
by CGD 95–014, 60 FR 31605, June 15, 1995;
USCG–1999–6216, 64 FR 53225, Oct. 1, 1999;
USCG–2002–13058, 67 FR 61279, Sept. 30, 2002;
USCG–2006–25697, 71 FR 55746, Sept. 25, 2006.
Redesignated and amended by USCG–2005–
20258, 71 FR 61418, 61419, Oct. 18, 2006]

§ 68.9 Qualification as a parent or subsidiary.
(a) To be formally qualified as a parent corporation, as defined in § 68.3, a
corporation must file with the Director, National Vessel Documentation
Center a certificate under oath as described in appendix B of this subpart.
(b) To be formally qualified as subsidiary corporation as defined in § 68.3,
a corporation must file with the Director, National Vessel Documentation
Center a certificate under oath as described in appendix B of this subpart.
(c) Upon the filing of the certificate
required under paragraph (a) or (b) of
this section, the Director, National
Vessel Documentation Center will furnish the corporation a certificate of
parent or subsidiary status which is
valid for a period of 3 years from the
date of its issuance unless there is a
change in corporate status requiring a
report under § 68.11(a). On or before the
date of expiration of the certificate of
parent or subsidiary status, a new certificate under oath as described in appendix B of this subpart must be filed
with the Director, National Vessel Documentation Center.
[CGD 89–007, CGD 89–007a, 58 FR 60266, Nov.
15, 1993; 58 FR 65131, Dec. 13, 1993, as amended
by CGD 95–014, 60 FR 31605, June 15, 1995;
USCG–1999–6216, 64 FR 53225, Oct. 1, 1999;
USCG–2002–13058, 67 FR 61279, Sept. 30, 2002.
Redesignated and amended by USCG–2005–
20258, 71 FR 61418, 61419, Oct. 18, 2006]

§ 68.11

Cessation of qualification.

(a) If after filing the certificate required by § 68.7, a change occurs whereby an 883–1 corporation no longer
meets the criteria in § 68.5(a), that corporation’s qualification for the privileges enumerated in §§ 68.13 and 68.15 is
terminated effective as of the date and

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§ 68.13

46 CFR Ch. I (10–1–11 Edition)

time of the change. The corporation
must report the change in writing to
the Director, National Vessel Documentation Center.
(b) If, after filing the certificate required by § 68.9, a change occurs whereby the corporation is no longer entitled
to be deemed a parent or subsidiary
corporation, that corporation’s qualification for the privileges in §§ 68.13 and
68.15 is terminated effective as of the
date and time of the change. The corporation must report such change in
writing to the Director, National Vessel Documentation Center.
[CGD 89–007, CGD 89–007a, 58 FR 60266, Nov.
15, 1993; 58 FR 65131, Dec. 13, 1993, as amended
by CGD 95–014, 60 FR 31605, June 15, 1995;
USCG–1999–6216, 64 FR 53225, Oct. 1, 1999. Redesignated and amended by USCG–2005–20258,
71 FR 61418, 61419, Oct. 18, 2006]

§ 68.13 Privileges
conferred—documentation of vessel.
The special citizenship status created
by the Act entitles the 883–1 corporation to document certain vessels for
certain limited purposes:
(a) An 883–1 corporation may document under the Act only vessels which
are qualified for employment in the
coastwise trade and which are either
non-self propelled or, if self-propelled,
are of less than 500 gross tons.
(b) A vessel owned by an 883–1 corporation and meeting the criteria in
paragraph (a) of this section may be
documented only for use in the coastwise trade subject to the restrictions in
§ 68.17.
(c) Section 68.19 contains details concerning the documentation of vessels
by an 883–1 corporation.

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[CGD 80–107, 47 FR 27511, June 24, 1982. Redesignated and amended by USCG–2005–20258, 71
FR 61418, Oct. 18, 2006]

§ 68.15 Privileges conferred—operation
of vessels.
(a) The special citizenship status created by the Act entitles the 883–1 corporation to operate, subject to the restrictions in § 68.17, vessels which are
qualified to engage in the coastwise
trade and are exempt from documentation. (See § 67.9 for classes of exempt
vessels.)
(b) Vessels, documented or exempt
from documentation, employed subject

to the Act may carry passengers and
merchandise of the 883–1 corporation
owning such vessels only between
points in the United States, including
territories, districts, and possessions
thereof embraced in the coastwise
laws.
(c) The special citizenship status created by the Act entitles an 883–1 corporation owning vessels as described in
paragraphs (a) and (b) of this section to
transport merchandise or passengers
for hire in the coastwise trade as a
service for a duly qualified parent or
subsidiary corporation as defined in
§ 68.3.
(d) The special citizenship status created by the Act entitles an 883–1 corporation owning vessels as described in
paragraphs (a) and (b) of this section to
demise or bareboat charter such vessels
to common or contract carriers subject
to the restrictions in § 68.17(c).
[CGD 80–107, 47 FR 27511, June 24, 1982, as
amended by USCG–2002–13058, 67 FR 61279,
Sept. 30, 2002. Redesignated and amended by
USCG–2005–20258, 71 FR 61418, Oct. 18, 2006]

§ 68.17

Restrictions.

(a) Vessels employed subject to the
Act are entitled to operation only in
the coastwise trade and only to the extent described in paragraphs (b) and/or
(c) of this section.
(b) A vessel owned by an 883–1 corporation may engage in coastwise
transportation for hire as a service to a
parent or subsidiary corporation as defined in § 68.3. Such transportation for
hire must be between points of the
United States, including territories,
districts, and possessions thereof embraced in the coastwise laws.
(c) A vessel owned by an 883–1 corporation may be operated under demise
or bareboat charter to a common or a
contract carrier subject to 49 U.S.C.
Chapter 101 if the corporation is a U.S.
citizen as defined in 46 U.S.C. App. 802.
(1) Such common or contract carrier
may not be connected either directly
or indirectly by ownership or control
with the 883–1 corporation.
(2) The demise or bareboat charter
must be at prevailing rates.

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Coast Guard, Dept. of Homeland Security
(3) The vessels under a demise or
bareboat charter may not be used in
non-contiguous trade.
[CGD 80–107, 47 FR 27511, June 24, 1982, as
amended by CGD 95–028, 62 FR 51203, Sept. 30,
1997. Redesignated and amended by USCG–
2005–20258, 71 FR 61418, Oct. 18, 2006]

§ 68.19 Application by an 883–1 corporation to document a vessel.
(a) An application by an 883–1 corporation to document a vessel must
comply with the applicable requirements in subparts A, D, E, F, G, H, I, K,
and L of part 67 of this chapter.
(b) An application by an 883–1 corporation to document a vessel must include a copy of the Certificate of Compliance issued under § 68.7.
[CGD 95–014, 60 FR 31606, June 15, 1995. Redesignated and amended by USCG–2005–20258, 71
FR 61418, Oct. 18, 2006]

APPENDIX A TO SUBPART A OF PART 68—
OATH FOR QUALIFICATION OF CORPORATION AS A CITIZEN OF THE
UNITED STATES UNDER THE ACT OF
SEPTEMBER 2, 1958 (46 U.S.C. APP.
883–1)
Department of Homeland Security, U.S. Coast
Guard
Oath for Qualification of Corporation as a
Citizen of the United States Under the Act
of September 2, 1958 (46 U.S.C. app. 883–1)

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Corporation:
Name lllllllllllllllllll
lllllllllllllllll
Address 1
State where incorporated lllllllll
Affiant:
Name lllllllllllllllllll
Address llllllllllllllllll
Company lllllllllllllllll
Title or capacity lllllllllllll
I, the affiant named above, swear that I am
legally authorized to make this oath on behalf of the corporation, that a majority of
the officers and directors of the above-named
corporation are citizens of the United States,
as shown by the attached listing incorporated in and made a part of this oath
which truly and correctly names all such officers and directors, giving the home address
and citizenship of each; that not less than 90
percent of the employees of the corporation
are residents of the United States; that the
corporation is engaged primarily in a manufacturing or mineral industry in the United
1 Show principal place of business of corporation.

Pt. 68, Subpt. A, App. B

States or in a territory, district or possession thereof; that the aggregate book value
of the vessels owned by the corporation does
not exceed 10 percent of the aggregate book
value of the assets of the corporation; and
that the corporation purchases or produces
in the United States, its territories or possessions not less than 75 percent of the raw
materials used or sold in its operation. 2
The above named corporation fails to qualify as a citizen within the meaning of
§ 67.39(c) of this chapter by reason of: 3
lllNon-citizen President
lllNon-citizen Chairman of Board
lllFailure to meet quorum requirements
lllFailure to meet stock ownership requirements
Signature llllllllllllllllll
Subscribed and sworn to before me on the
day and year shown
llllllllllllllllllllllll
llllllllllllllllllllllll
(Notary Public)
Date lllllllllllllllllllll
[CGD 80–107, 47 FR 27511, June 24, 1982, as
amended by USCG–2002–13058, 67 FR 61279,
Sept. 30, 2002; USCG–2003–14505, 68 FR 9535,
Feb. 28, 2003. Redesignated and amended by
USCG–2007–28098, 71 FR 61418, 61419, Oct. 18,
2006]

APPENDIX B TO SUBPART A OF PART 68—
OATH OF PARENT OR SUBSIDIARY
CORPORATION ACT OF SEPTEMBER 2,
1958 (46 U.S.C. APP. 883–1)
Department of Homeland Security, U.S. Coast
Guard
Oath of Parent or Subsidiary Corporation,
Act of September 2, 1958 (46 U.S.C. app. 883–
1)
Corporation:
Name lllllllllllllllllll
Address llllllllllllllllll
State of incorporation
llllllllll
(SubStatus
(Parent) 1llll
sidiary) 2llll
2 Attach the required list of the names of
all officers and directors of the corporation,
giving the home address and citizenship of
each.
3 Check appropriate line or lines.
1 A ‘‘parent corporation’’ for the purposes
of this oath is one incorporated under the
laws of the United States, or any State, territory, or district of the United States,
which controls (directly or indirectly) at
least 50 percent of the voting stock of another corporation. Strike out the inapplicable term.
2 A ‘‘subsidiary corporation’’ for the purposes of this oath is one incorporated under
the laws of the United States, or any State,

Continued

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§ 68.25

46 CFR Ch. I (10–1–11 Edition)

Name of associated corporation
llllll
Address llllllllllllllllll
State where incorporated lllllllll
Affiant:
Name lllllllllllllllllll
Address llllllllllllllllll
Company lllllllllllllllll
Title or capacity lllllllllllll
I, the affiant named above, swear that the
corporation first named herein is the (parent) 1 (subsidiary) 2 of the associated corporation named, that I am the duly authorized
officer or agent of the corporation first
named, and that the associated corporation
has previously established that it is a citizen
within the meaning of the Act of September
2, 1958 (46 U.S.C. app. 883–1).
Signature llllllllllllllllll
Subscribed and sworn to before me on the
day and year shown
llllllllllllllllllllllll
(Notary Public)
[CGD 80–107,47 FR 27511, June 24, 1982, as
amended by USCG–2003–14505, 68 FR 9535,
Feb. 28, 2003. Redesignated and amended by
USCG–2007–28098, 71 FR 61418, 61419, Oct. 18,
2006]

Subpart
B—Documentation
of
Certain Vessels for Oil Spill
Cleanup
SOURCE: CGD 90–055, 57 FR 7642, Mar. 3,
1992. Redesignated by USCG–2005–20258, 71 FR
61418, Oct. 18, 2006]

§ 68.25 Purpose and scope.
This subpart contains citizen ownership requirements and procedures to
allow documentation of vessels which
do not meet the requirements of part 67
of this chapter. The requirements are
for the limited purposes of training for,
implementing, and supporting oil spill
cleanup operations.
[CGD 90–055, 57 FR 7642, Mar. 3, 1992. Redesignated by USCG–2005–20258, 71 FR 61418, Oct.
18, 2006]

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§ 68.27 Definitions for purposes of this
subpart.
Certificate of Documentation means
form CG–1270.
Citizen means a citizen as described
in part 67 of this chapter.
territory, or district of the United States,
which has not less than 50 percent of its voting stock controlled (directly or indirectly)
by another corporation. Strike out the inapplicable term.

Exclusive Economic Zone or EEZ
means the exclusive economic zone established by Presidential Proclamation
Numbered 5030, dated March 10, 1983,
including the ocean waters of the areas
referred to as ‘‘eastern special areas’’
in Article 3(1) of the Agreement between the United States of America
and the Union of Soviet Socialist Republics on the Maritime Boundary,
signed June 1, 1990.
Not-for-profit oil spill response cooperative means a corporation, partnership,
association, trust, joint venture, or
other entity established under the laws
of the United States, or of a State,
with a not-for-profit status and for the
limited purposes of training for, carrying out, and supporting oil spill
cleanup operations or related research
activities.
[CGD 90–055, 57 FR 7642, Mar. 3, 1992. Redesignated by USCG–2005–20258, 71 FR 61418, Oct.
18, 2006]

§ 68.29 Citizenship requirements
limited coastwise endorsement.

(a) Notwithstanding the citizenship
requirements set out in part 67 of this
chapter, a Certificate of Documentation with a coastwise endorsement for
the limited purposes provided in § 68.33
may be issued to a vessel owned by—
(1) A not-for-profit oil spill response
cooperative if the vessel meets the requirements of paragraph (b) of this section; or
(2) A member or members of a notfor-profit oil spill response cooperative
if the vessel meets the requirements of
paragraphs (b) and (c) of this section.
(b) The vessel must be at least 50 percent owned by one or more of the following entities:
(1) An individual who is a nativeborn, naturalized or derivative citizen
of the United States or otherwise
qualifies as a United States citizen.
(2) A corporation incorporated under
the laws of the United States or of a
State where—
(i) The president and, if the president
is not the chief executive officer, the
chief executive officer, by whatever
title, is a citizen;
(ii) The chairman of the board of directors is a citizen; and

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Coast Guard, Dept. of Homeland Security
(iii) No more of the directors are noncitizens than a minority of the number
necessary to constitute a quorum.
(3) A partnership where all the general partners are citizens and at least
50 percent of the equity interest is
owned by citizens.
(4) An association or joint venture
where all the members are citizens.
(5) A trust where all the trustees and
all the beneficiaries with an enforceable interest in the trust are citizens.
(c) The vessel must be owned by a
member or members of a not-for-profit
oil spill response cooperative who dedicate the vessel to the use of a not-forprofit oil spill response cooperative.
(d) A vessel which meets the criteria
of this section is considered to be
owned exclusively by citizens of the
United States for the purposes of subsequent transfer and documentation
under part 67 of this chapter.
[CGD 90–055, 57 FR 7642, Mar. 3, 1992. Redesignated and amended by USCG–2005–20258, 71
FR 61418, Oct. 18, 2006]

§ 68.31 Vessel eligibility requirements
for limited coastwise endorsement.
(a) A vessel must comply with all the
requirements of part 67 of this chapter,
other than citizenship requirements, in
order to be eligible for documentation
under this subpart.
(b) Notwithstanding 46 U.S.C. App.
883, a vessel remains eligible for documentation under this subpart even if
the vessel was formerly owned by a
not-for-profit oil spill response cooperative or by one or more members of a
not-for-profit oil spill response cooperative and the vessel meets the criteria
of § 68.29.

wreier-aviles on DSK3TPTVN1PROD with CFR

[CGD 90–055, 57 FR 7642, Mar. 3, 1992. Redesignated and amended by USCG–2005–20258, 71
FR 61418, Oct. 18, 2006]

§ 68.33 Privileges of a limited coastwise endorsement.
(a) A vessel which is documented and
issued a limited coastwise endorsement
under this subpart may operate on the
navigable waters of the United States
or in the EEZ in coastwise trade only
for the following purposes:
(1) To recover oil discharged into the
water.
(2) To transport oil discharged into
the water.

§ 68.35

(3) To transport and deploy equipment, supplies, and personnel for recovering and transporting oil discharged into the water.
(4) To conduct training exercises to
prepare for performing the functions in
paragraphs (a)(1) through (a)(3) of this
section.
(b) This limited coastwise endorsement also entitles the vessel to any
other employment for which a registry
or fishery license is not required.
(c) A vessel which is documented and
issued a limited coastwise endorsement
under this subpart may qualify to operate for other purposes by meeting the
applicable requirements of part 67 of
this chapter.
[CGD 90–055, 57 FR 7642, Mar. 3, 1992. Redesignated by USCG–2005–20258, 71 FR 61418, Oct.
18, 2006; USCG–2009–0702, 74 FR 49230, Sept. 25,
2009]

§ 68.35 Application to document a vessel under this subpart.
(a) To qualify to document a vessel
or to accept the dedication of a vessel
by a member or members under this
subpart, a not-for-profit oil spill response cooperative shall file with the
Director, National Vessel Documentation Center the certificate under oath
as set forth in appendix A to this subpart.
(b) Upon the filing of the certificate
under paragraph (a) of this section, the
Director, National Vessel Documentation Center will furnish the not-forprofit oil spill response cooperative
with a letter of qualification. The letter of qualification is valid for a period
of three years from the date of its
issuance, unless there is a change in
membership or structure of the not-forprofit oil spill response cooperative or
a change in the citizenship status of
any of its members requiring a report
under § 68.37. In order to renew the letter of qualification, a new certificate
under oath must be filed with the Commandant at least 30 days before the
date of expiration of the letter of qualification.
(c) A not-for-profit oil spill response
cooperative seeking to document a vessel for a limited coastwise endorsement
under this subpart, in addition to complying with the requirements of
§ 68.31(a), shall supply to the National

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§ 68.37

46 CFR Ch. I (10–1–11 Edition)

Vessel Documentation Center, a copy
of the letter of qualification issued
under paragraph (b) of this section.
(d) A member or members of a notfor-profit oil spill response cooperative
seeking to document a vessel under
this subpart shall supply to the National Vessel Documentation Center, a
copy of the letter of qualification
issued under paragraph (b) of this section to the not-for-profit oil spill response cooperative to which the vessel
is dedicated. In addition, the not-forprofit oil spill response cooperative and
the vessel owners shall all certify
under oath that the vessel for which
application is made is dedicated to use
by the not-for-profit oil spill response
cooperative. This certification must
use the format and content described
in appendix B to this subpart. If there
is a change in the dedicated status of
the vessel or its ownership, a report
under § 68.37 must be filed.
[GCD 89–007; GCD 89–007a, 58 FR 60266, Nov.
15, 1993, 58 FR 65131, Dec. 13, 1993, as amended
by CGD 95–014, 60 FR 31606, June 15, 1995;
USCG–1999–6216, 64 FR 53225, Oct. 1, 1999. Redesignated and amended by USCG–2005–20258,
71 FR 61418, Oct. 18, 2006]

wreier-aviles on DSK3TPTVN1PROD with CFR

§ 68.37

Cessation of qualifications.

(a) If the vessel is owned by a not-forprofit oil spill response cooperative and
a change occurs which affects the validity of the certificate required by
§ 68.35(a), or the ownership of the vessel
changes so that it no longer meets the
criteria of § 68.29, the qualification for
the privileges enumerated in § 68.33 is
terminated effective as of the date and
time of the change. The not-for-profit
oil spill response cooperative shall report the change in writing to the Director, National Vessel Documentation
Center.
(b) If the vessel is owned by a member or members of a not-for-profit oil
spill response cooperative and a change
occurs which affects the validity of the
certificate required by § 68.35(a), or the
ownership of the vessel changes so that
it no longer meets the criteria of
§ 68.29, the qualification of the member
or members for the privileges enumerated in § 68.33 is terminated effective as
of the date and time of the change. The
member or members shall report the

change in writing to the Director, National Vessel Documentation Center.
(c) When qualifications are terminated under this section, the certificate of documentation issued under
this subpart must be surrendered or exchanged in accordance with part 67 of
this chapter.
[GCD 89–007; GCD 89–007a, 58 FR 60266, Nov.
15, 1993, 58 FR 65131, Dec. 13, 1993, as amended
by CGD 95–014, 60 FR 31606, June 15, 1995;
USCG–1999–6216, 64 FR 53225, Oct. 1, 1999. Redesignated and amended by USCG–2005–20258,
71 FR 61418, Oct. 18, 2006]

APPENDIX A TO SUBPART B OF PART 68—
OATH FOR QUALIFICATION OF A NOTFOR-PROFIT OIL SPILL RESPONSE
COOPERATIVE
Department of Homeland Security, U.S. Coast
Guard
Oath for Qualification of a Not-For-Profit
Oil Spill Response Cooperative [46 U.S.C.
12106(d)]
Cooperative:
Name

llllllllllllllllllll
lllllllllllllllllll

Address

Jurisdiction where incorporated or organized
lllllllllllllllllll
llllllllllllllllllllllll
Affiant:
Name

llllllllllllllllllll
lllllllllllllllllll

Address

Cooperative

lllllllllllllllll

Title or Capacity llllllllllllll
I, the affiant, swear that I am legally authorized to make this oath and hold the capacity so bestowed upon me as llll, on
behalf of the lllllll cooperative and
its members, that it is a not-for-profit cooperative, and that it is engaged in training
for, carrying out, or supporting oil spill
cleanup operations or related research activities.
That all members of the cooperative who
may use the letter of qualification issued to
this cooperative are truly and correctly
named, including home address and citizenship of each on the attached listing incorporated in and made a part of this oath.
Signature

llllllllllllllllll

Subscribed and sworn to before me on the
day and year shown.
llllllllllllllllllllllll
(Notary Public)

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Coast Guard, Dept. of Homeland Security
Date lllllllllllllllllllll
[CGD 90–055, 57 FR 7642, Mar. 3, 1992, as
amended by USCG–2003–14505, 68 FR 9535,
Feb. 28, 2003. Redesignated by USCG–2007–
28098, 71 FR 61418, Oct. 18, 2006]

Subpart C—Vessels With a Coastwise Endorsement Issued on
or After August 9, 2004, That
Are Demised Chartered to
Coastwise Qualified Citizens

APPENDIX B TO SUBPART B OF PART 68—
OATH FOR DOCUMENTATION OF VESSELS FOR USE BY A NOT-FOR-PROFIT
OIL SPILL RESPONSE COOPERATIVE

SOURCE: USCG–2005–20258, 71 FR 61419, Oct.
18, 2006, unless otherwise noted.

Department of Homeland Security, U.S. Coast
Guard
Oath for Documentation of Vessels For Use
by a Not-For-Profit Oil Spill Response Cooperative [46 U.S.C. 12106(d)]
Cooperative:
Name
Address

llllllllllllllllllll
lllllllllllllllllll

Jurisdiction where incorporated or organized
lllllllllllllllllll
llllllllllllllllllllllll
I, the undersigned officer of lllll, a
not-for-profit oil spill response cooperative,
swear that I am legally authorized to make
this oath on behalf of the cooperative, and
its members and that the cooperative has accepted the vessel lllll.
I/we lllll, am/are the owner(s) of the
vessel. I/we further swear that the vessel has
been dedicated to the exclusive use of the cooperative for the purpose of training for, carrying out, or supporting oil spill cleanup operations or related research activities for
discharges of oil into the navigable waters of
the United States and the Exclusive Economic Zone and that the cooperative has accepted the vessel.
For the Cooperative:
Name
Address

llllllllllllllllllll
lllllllllllllllllll

Cooperative

lllllllllllllllll

Title or Capacity llllllllllllll
For Each Vessel Owner:
Name

llllllllllllllllllll

Cooperative

lllllllllllllllll

Title or Capacity llllllllllllll
Subscribed and sworn to before me on the
day and year shown.
llllllllllllllllllllllll
(Notary Public)
Date lllllllllllllllllllll
wreier-aviles on DSK3TPTVN1PROD with CFR

§ 68.55

[CGD 90–055, 57 FR 7642, Mar. 3, 1992, as
amended by USCG–2003–14505, 68 FR 9535,
Feb. 28, 2003. Redesignated by USCG–2007–
28098, 71 FR 61418, Oct. 18, 2006]

§ 68.50

Purpose and applicability.

(a) This subpart contains requirements, in addition to those in part 67 of
this chapter, for obtaining a coastwise
endorsement for a U.S.-built vessel—
(1) That is owned by a person that
qualifies as a citizen under § 67.35(a),
§ 67.36(a), § 67.37, or § 67.39(a) of this
chapter; and
(2) That is demise chartered to a
coastwise qualified citizen under § 67.33,
§ 67.35(c), § 67.36(c), § 67.37, § 67.39(c), or
§ 67.41 of this chapter.
(b) This subpart applies to a vessel
with a coastwise endorsement issued
on or after August 9, 2004. It does not
apply to a vessel under subpart D of
this part.
§ 68.55

Definitions.

In addition to the terms defined in
§ 67.3 of this chapter, as used in this
subpart—
Affiliate means, with respect to any
person, any other person that is—
(1) Directly or indirectly controlled
by, under common control with, or
controlling that person; or
(2) Named as being part of the same
consolidated group in any report or
other document submitted to the
United States Securities and Exchange
Commission or the Internal Revenue
Service.
Cargo does not include cargo to which
title is held for non-commercial reasons and primarily for the purpose of
evading
the
requirements
of
§ 68.65(a)(2).
Oil has the meaning given that term
in 46 U.S.C. 2101(20).
Operation or management, for vessels,
means all activities related to the use
of vessels to provide services. These activities include, but are not limited to,
ship agency; ship brokerage; activities
performed by a vessel operator or demise charterer in exercising direction

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wreier-aviles on DSK3TPTVN1PROD with CFR

§ 68.60

46 CFR Ch. I (10–1–11 Edition)

and control of a vessel, such as crewing, victualing, storing, and maintaining the vessel and ensuring its safe
navigation; and activities associated
with controlling the use and employment of the vessel under a time charter
or other use agreement. It does not include activities directly associated
with making financial investments in
vessels or the receipt of earnings derived from these investments.
Passive investment means an investment in which neither the investor nor
any affiliate of the investor is involved
in, or has the power to be involved in,
the formulation, determination, or direction of any activity or function concerning the use, operation, or management of the asset that is the subject of
the investment.
Qualified proprietary cargo means—
(1) Oil, petroleum products, petrochemicals, or liquefied natural gas
cargo that is beneficially owned by the
person who submits to the Director,
National Vessel Documentation Center, an application or annual certification under § 68.65(a)(2), or by an affiliate of that person, immediately before, during, or immediately after the
cargo is carried in coastwise trade on a
vessel owned by that person;
(2) Oil, petroleum products, petrochemicals, or liquefied natural gas
cargo not beneficially owned by the
person who submits to the Director,
National Vessel Documentation Center, an application or an annual certification under § 68.65(a)(2), or by an affiliate of that person, but that is carried
in coastwise trade by a vessel owned by
that person and which is part of an arrangement in which vessels owned by
that person and at least one other person are operated collectively as one
fleet, to the extent that an equal
amount of oil, petroleum products, petrochemicals, or liquefied natural gas
cargo beneficially owned by that person, or an affiliate of that person, is
carried in coastwise trade on one or
more other vessels, not owned by that
person, or an affiliate of that person, if
the other vessel or vessels are also part
of the same arrangement;
(3) In the case of a towing vessel associated with a non-self-propelled tank
vessel where the two vessels function
as a single self-propelled vessel, oil, pe-

troleum products, petrochemicals, or
liquefied natural gas cargo that is beneficially owned by the person who owns
both the towing vessel and the nonself-propelled tank vessel, or any
United States affiliate of that person,
immediately before, during, or immediately after the cargo is carried in
coastwise trade on either of the two
vessels; or
(4) Any oil, petroleum products, petrochemicals, or liquefied natural gas
cargo carried on any vessel that is either a self-propelled tank vessel having
a length of at least 210 meters (about
689 feet) or a tank vessel that is a liquefied natural gas carrier that—
(i) Was delivered by the builder of the
vessel to the owner of the vessel after
December 31, 1999; and
(ii) Was purchased by a person for the
purpose, and with the reasonable expectation, of transporting on the vessel
liquefied natural gas or unrefined petroleum beneficially owned by the
owner of the vessel, or an affiliate of
the owner, from Alaska to the continental United States.
Sub-charter means all types of charters or other contracts for the use of a
vessel that are subordinate to a charter. The term includes, but is not limited to, a demise charter, a time charter, a voyage charter, a space charter,
and a contract of affreightment.
United States affiliate means, with respect to any person, an affiliate the
principal place of business of which is
located in the United States.
§ 68.60 Eligibility of a vessel for a
coastwise endorsement under this
subpart.
(a) To be eligible for a coastwise endorsement under 46 U.S.C. 12106(e) and
to operate in coastwise trade under 46
U.S.C. 12106(e) and 12110(b), a vessel
must meet the following:
(1) The vessel is eligible for documentation under 46 U.S.C. 12102.
(2) The vessel is eligible for a coastwise endorsement under § 67.19(c) of
this chapter and has not lost coastwise
eligibility under § 67.19(d) of this chapter.
(3) The person that owns the vessel
(or, if the vessel is owned by a trust or
similar arrangement, the beneficiary of

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Coast Guard, Dept. of Homeland Security
the trust or similar arrangement)
makes the certification in § 68.65.
(4) The person that owns the vessel
has transferred to a qualified U.S. citizen under 46 U.S.C. app. 802 full possession, control, and command of the vessel through a demise charter in which
the demise charterer is considered the
owner pro hac vice during the term of
the charter.
(5) The charterer must certify to the
Director, National Vessel Documentation Center, that the charterer is a citizen of the United States for engaging
in the coastwise trade under 46 U.S.C.
app. 802.
(6) The demise charter is for a period
of at least 3 years, unless a shorter period is authorized by the Director, National Vessel Documentation Center,
under circumstances such as—
(i) When the vessel’s remaining life
would not support a charter of 3 years;
or
(ii) To preserve the use or possession
of the vessel.
(b) To apply for a coastwise endorsement for a vessel under a demise charter, see § 68.70 and, for a barge, see
§ 68.75.
NOTE TO § 68.60: Section 608(b) of Public
Law 108–293 provides special requirements for
certain vessels in the Alaska trade.

wreier-aviles on DSK3TPTVN1PROD with CFR

§ 68.65

Annual ownership certification.

(a) At the time of initial application
for documentation and at the time for
annual renewal of the endorsement as
required by § 67.163 of this chapter, the
person that owns a vessel with a coastwise endorsement under § 68.60 must
certify in writing to the Director, National Vessel Documentation Center—
(1) That the person who owns a vessel
with a coastwise endorsement under
§ 68.60—
(i) Is a leasing company, bank, or financial institution;
(ii) Owns, or holds the beneficial interest in, the vessel solely as a passive
investment;
(iii) Does not operate any vessel for
hire and is not an affiliate of any person who operates any vessel for hire;
and
(iv) Is independent from, and not an
affiliate of, any charterer of the vessel
or any other person who has the right,

§ 68.65

directly or indirectly, to control or direct the movement or use of the vessel.
(2) For vessels under paragraph (b) of
this section, that—
(i) The aggregate book value of the
vessels owned by that person and
United States affiliates of that person
does not exceed 10 percent of the aggregate book value of all assets owned by
that person and its United States affiliates;
(ii) Not more than 10 percent of the
aggregate revenues of that person and
its United States affiliates is derived
from the ownership, operation, or management of vessels;
(iii) At least 70 percent of the aggregate tonnage of all cargo carried by all
vessels owned by that person and its
United States affiliates and documented under 46 U.S.C. 12106 is qualified proprietary cargo;
(iv) Any cargo other than qualified
proprietary cargo carried by all vessels
owned by that person and its United
States affiliates and documented under
46 U.S.C. 12106 consists of oil, petroleum products, petrochemicals, or
liquified natural gas;
(v) No vessel owned by that person or
any of its United States affiliates and
documented under 46 U.S.C. 12106 carries molten sulphur; and
(vi) That person owned one or more
vessels documented as of August 9,
2004, under § 67.20, as that section was
in effect on that date.
(b) Paragraph (a)(2) of this section
applies only to—
(1) A tank vessel having a tonnage of
not less than 6,000 gross tons, as measured under 46 U.S.C. 14502 (or an alternative tonnage measured under 46
U.S.C. 14302 as prescribed under 46
U.S.C. 14104); or
(2) A towing vessel associated with a
non-self-propelled tank vessel that
meets the requirements of paragraph
(b)(1) of this section, where the two
vessels function as a single self-propelled vessel.
NOTE TO § 68.65: The Secretary of Transportation may waive or reduce the qualified proprietary cargo requirement of § 68.65(a)(2)(iii)
for a vessel if the person that owns the vessel
(or, if the vessel is owned by a trust or similar arrangement, the beneficiary of the trust
or similar arrangement) notifies the Secretary that circumstances beyond the direct
control of the person that owns the vessel or

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§ 68.70

46 CFR Ch. I (10–1–11 Edition)

its affiliates prevent, or reasonably threaten
to prevent, the person that owns the vessel
from satisfying this requirement, and the
Secretary does not, with good cause, determine otherwise. The waiver or reduction applies during the period of time that the circumstances exist.

wreier-aviles on DSK3TPTVN1PROD with CFR

§ 68.70 Application procedure for vessels other than barges to be operated in coastwise trade without
being documented.
(a) The person that owns the vessel
(other than a barge under § 68.75) and
that seeks a coastwise endorsement
under § 68.60 must submit the following
to the National Vessel Documentation
Center:
(1) Application for Initial Issue, Exchange, or Replacement of Certificate
of Documentation; or Redocumentation (form CG–1258);
(2) Title evidence, if applicable;
(3) Mortgagee consent on form CG–
4593, if applicable;
(4) If the application is for replacement of a mutilated document or for
exchange of documentation, the outstanding Certificate of Documentation;
(5) The certification required by
§ 68.65(a)(1) or, if a vessel under
§ 68.65(b), the certification required by
§ 68.65(a)(2);
(6) A certification in the form of an
affidavit and, if requested by the Director, National Vessel Documentation
Center, supporting documentation establishing the following facts with respect to the transaction from an individual who is authorized to provide certification on behalf of the person that
owns the vessel and who is an officer in
a corporation, a partner in a partnership, a member of the board of managers in a limited liability company, or
their equivalent. The certificate must
certify that the person that owns the
vessel has transferred to a qualified
United States citizen under 46 U.S.C.
app. 802 full possession, control, and
command of the U.S.-built vessel
through a demise charter in which the
demise charterer is considered the
owner pro hac vice during the term of
the charter.
(7) A copy of the charter, which must
provide that the charterer is deemed to
be the owner pro hac vice for the term
of the charter.

(b) The charterer must submit the
following to the National Vessel Documentation Center:
(1) A certificate certifying that the
charterer is a citizen of the United
States for the purpose of engaging in
the coastwise trade under 46 U.S.C.
app. 802.
(2) Detailed citizenship information
in the format of form CG–1258, Application for Documentation, section G,
citizenship. The citizenship information may be attached to the form CG–
1258 that is submitted under paragraph
(a)(1) of this section and must be signed
by, or on behalf of, the charterer.
(c) Whenever a charter submitted
under paragraph (a)(7) of this section is
amended, the vessel owner must file a
copy of the amendment with the Director, National Vessel Documentation
Center, within 10 days after the effective date of the amendment.
(d) Whenever the charterer of a vessel
under paragraph (a) of this section enters into a sub-charter that is a demise
charter with another person for the use
of the vessel, the charterer must file a
copy of the sub-charter and amendments to the sub-charter with the Director, National Vessel Documentation
Center, within 10 days after the effective date of the sub-charter and the
sub-charterer must provide detailed
citizenship information in the format
of form CG–1258, Application for Documentation, section G, citizenship.
(e) Whenever the charterer of a vessel
under paragraph (a) of this section enters into a sub-charter other than a demise charter with another person for
the use of the vessel, the charterer
must file a copy of the sub-charter and
amendments to the sub-charter with
the Director, National Vessel Documentation Center, within 10 days after
a request by the Director to do so.
(f) A person that submits a false certification under this section is subject
to penalty under 46 U.S.C. 12122 and 18
U.S.C. 1001.
§ 68.75 Application
procedure
for
barges to be operated in coastwise
trade without being documented.
(a) The person that owns a barge
qualified to engage in coastwise trade
must submit the following to the National Vessel Documentation Center:

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wreier-aviles on DSK3TPTVN1PROD with CFR

Coast Guard, Dept. of Homeland Security
(1) The certification required by
§ 68.65(a)(1) or (a)(2).
(2) A certification in the form of an
affidavit and, if requested by the Director, National Vessel Documentation
Center, supporting documentation establishing the following facts with respect to the transaction from an individual who is authorized to provide certification on behalf of the person that
owns the barge and who is an officer in
a corporation, a partner in a partnership, a member of the board of managers in a limited liability company, or
their equivalent. The certificate must
certify the following:
(i) That the person that owns the
barge is organized under the laws of
the United States or a State.
(ii) That the person that owns the
barge has transferred to a qualified
United States citizen under 46 U.S.C.
app. 802 full possession, control, and
command of the U.S.-built barge
through a demise charter in which the
demise charterer is considered the
owner pro hac vice during the term of
the charter.
(iii) That the barge is qualified to engage in the coastwise trade and that it
is owned by a person eligible to own
vessels documented under 46 U.S.C.
12102(e).
(3) A copy of the charter, which must
provide that the charterer is deemed to
be the owner pro hac vice for the term
of the charter.
(b) The charterer must submit the
following to the National Vessel Documentation Center:
(1) A certificate certifying that the
charterer is a citizen of the United
States for engaging in the coastwise
trade under 46 U.S.C. app. 802.
(2) Detailed citizenship information
in the format of form CG–1258, Application for Documentation, section G,
citizenship. The citizenship information must be signed by, or on behalf of,
the charterer.
(c) Whenever a charter under paragraph (a) of this section is amended,
the barge owner must file a copy of the
amendment with the Director, National Vessel Documentation Center,
within 10 days after the effective date
of the amendment.
(d) Whenever the charterer of a barge
under paragraph (a) of this section en-

§ 68.80

ters into a sub-charter that is a demise
charter with another person for the use
of the barge, the charterer must file a
copy of the sub-charter and amendments to the sub-charter with the Director, National Vessel Documentation
Center, within 10 days after the effective date of the sub-charter and the
sub-charterer must provide detailed
citizenship information in the format
of form CG–1258, Application for Documentation, section G, citizenship.
(e) Whenever the charterer of a barge
under paragraph (a) of this section enters into a sub-charter other than a demise charter with another person for
the use of the barge, the charterer
must file a copy of the sub-charter and
amendments to the sub-charter with
the Director, National Vessel Documentation Center, within 10 days after
a request by the Director to do so.
(f) A person that submits a false certification under this section is subject
to penalty under 46 U.S.C. 12122 and 18
U.S.C. 1001.
§ 68.80 Invalidation of a coastwise endorsement.
In addition to the events in
§ 67.167(c)(1) through (c)(9) of this chapter, a Certificate of Documentation together with a coastwise endorsement
under this subpart becomes invalid
when—
(a) The owner fails to make the certification required by § 68.65 or ceases
to meet the requirements of the certification on file;
(b) The demise charter expires or is
transferred to another charterer; or
(c) The citizenship of the charterer or
sub-charterer changes to the extent
that they are no longer qualified for a
coastwise endorsement.

Subpart D—Vessels With a Coastwise Endorsement Issued Before August 9, 2004, and Their
Replacements That Are Demised Chartered to Coastwise-Qualified Citizens
SOURCE: USCG–2005–20258, 71 FR 61421, Oct.
18, 2006, unless otherwise noted.

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§ 68.100

46 CFR Ch. I (10–1–11 Edition)

wreier-aviles on DSK3TPTVN1PROD with CFR

§ 68.100 Purpose and applicability.
(a) This subpart contains requirements for the documentation of U.S.built vessels in the coastwise trade
that were granted special rights under
the Coast Guard and Maritime Transportation Action of 2004 (Pub. L. 108–
293).
(b) This subpart applies to—
(1) A vessel under a demise charter
that was eligible for, and received, a
document with a coastwise endorsement under § 67.19 of this chapter and 46
U.S.C. 12106(e) before August 9, 2004;
(2) A barge deemed eligible under 46
U.S.C. 12106(e) and 12110(b) to operate
in coastwise trade without being documented before August 9, 2004; and
(3) A replacement vessel of a similar
size and function for any vessel under
paragraphs (b)(1) through (b)(3) of this
section.
(c) Except for vessels under paragraph (d) of this section, this subpart
applies to a certificate of documentation, or renewal of one, endorsed with a
coastwise endorsement for a vessel
under 46 U.S.C. 12106(e) or a replacement vessel of a similar size and function that was issued before August 9,
2004, as long as the vessel is owned by
the person named in the certificate, or
by a subsidiary or affiliate of that person, and the controlling interest in the
owner has not been transferred to a
person that was not an affiliate of the
owner as of August 9, 2004.
(d) With respect to offshore supply
vessels with a certificate of documentation endorsed with a coastwise
endorsement as of August 9, 2004, this
subpart applies until August 9, 2007. On
and after August 9, 2007, subpart C of
this part applies to these vessels.
§ 68.103 Definitions.
In addition to the terms defined in
§ 67.3 of this chapter, as used in this
subpart—
Affiliate means a person that is less
than 50 percent owned or controlled by
another person.
Group means the person that owns a
vessel, the parent of that person, and
all subsidiaries and affiliates of the
parent of that person.
Offshore supply vessel means a motor
vessel of more than 15 gross tons but
less than 500 gross tons as measured

under 46 U.S.C. 14502, or an alternate
tonnage measured under 46 U.S.C. 14302
as prescribed under 46 U.S.C. 14104, that
regularly carries goods, supplies, individuals in addition to the crew, or
equipment in support of exploration,
exploitation, or production of offshore
mineral or energy resources.
Operation or management of vessels
means all activities related to the use
of vessels to provide services. These activities include ship agency; ship brokerage; activities performed by a vessel operator or demise charterer in exercising direction and control of a vessel, such as crewing, victualing, storing, and maintaining the vessel and ensuring its safe navigation; and activities associated with controlling the use
and employment of the vessel under a
time charter or other use agreement. It
does not include activities directly associated with making financial investments in vessels or the receipt of earnings derived from these investments.
Parent means any person that directly or indirectly owns or controls at
least 50 percent of another person. If an
owner’s parent is directly or indirectly
controlled at least 50 percent by another person, that person is also a parent of the owner. Therefore, an owner
may have multiple parents.
Person means an individual; corporation; partnership; limited liability
partnership; limited liability company;
association; joint venture; trust arrangement; and the government of the
United States, a State, or a political
subdivision of the United States or a
State; and includes a trustee, beneficiary, receiver, or similar representative of any of them.
Primarily engaged in leasing or other financing transactions means lease financing, in which more than 50 percent
of the aggregate revenue of a person is
derived from banking, investing, lease
financing, or other similar transactions.
Replacement vessel means—
(1) A temporary replacement vessel
for a period not to exceed 180 days if
the vessel described in § 68.50 is unavailable due to an act of God or a marine casualty; or
(2) A permanent replacement vessel
if—

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Coast Guard, Dept. of Homeland Security
(i) The vessel described in § 68.50 is
unavailable for more than 180 days due
to an act of God or a marine casualty;
or
(ii) A contract to purchase or construct a replacement vessel is executed
not later than December 31, 2004.
Sub-charter means all types of charters or other contracts for the use of a
vessel that are subordinate to a charter. The term includes, but is not limited to, a demise charter, a time charter, a voyage charter, a space charter,
and a contract of affreightment.
Subsidiary means a person at least 50
percent of which is directly or indirectly owned or controlled by another
person.

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§ 68.105 Eligibility of a vessel for a
coastwise endorsement under this
subpart.
(a) Except as under paragraphs (b)
through (e) of this section, to be eligible for a coastwise endorsement under
46 U.S.C. 12106(e) and to operate in
coastwise trade under 46 U.S.C. 12106(e)
and 12110(b), a vessel under a demise
charter must meet the following:
(1) The vessel is eligible for documentation under 46 U.S.C. 12102.
(2) The vessel is eligible for a coastwise endorsement under § 67.19(c) of
this chapter, has not lost coastwise eligibility under § 67.19(d) of this chapter,
and was financed with lease financing.
(3) The person that owns the vessel,
the parent of that person, or a subsidiary of the parent of that person is
primarily engaged in leasing or other
financing transactions.
(4) The person that owns the vessel is
organized under the laws of the United
States or of a State.
(5) None of the following is primarily
engaged in the direct operation or
management of vessels:
(i) The person that owns the vessel.
(ii) The parent of the person that
owns the vessel.
(iii) The group of which the person
that owns the vessel is a member.
(6) The ownership of the vessel is primarily a financial investment without
the ability and intent to directly or indirectly control the vessel’s operations
by a person not primarily engaged in
the direct operation or management of
vessels.

§ 68.105

(7) The majority of the aggregate revenues of each of the following is not derived from the operation or management of vessels:
(i) The person that owns the vessel.
(ii) The parent of the person that
owns the vessel.
(iii) The group of which the person
that owns the vessel is a member.
(8) None of the following is primarily
engaged in the operation or management of commercial, foreign-flag vessels used for the carriage of cargo for
parties unrelated to the vessel’s owner
or charterer:
(i) The person that owns the vessel.
(ii) The parent of the person that
owns the vessel.
(iii) The group of which the person
that owns the vessel is a member.
(9) The person that owns the vessel
has transferred to a qualified U.S. citizen under 46 U.S.C. app. 802 full possession, control, and command of the
U.S.-built vessel through a demise
charter in which the demise charterer
is considered the owner pro hac vice
during the term of the charter.
(10) The charterer must certify to the
Director, National Vessel Documentation Center, that the charterer is a citizen of the United States for engaging
in the coastwise trade under 46 U.S.C.
app. 802.
(11) The demise charter is for a period
of at least 3 years, unless a shorter period is authorized by the Director, National Vessel Documentation Center,
under circumstances such as—
(i) When the vessel’s remaining life
would not support a charter of 3 years;
or
(ii) To preserve the use or possession
of the vessel.
(b) A vessel under a demise charter
that was eligible for, and received, a
document with a coastwise endorsement under § 67.19 of this chapter and 46
U.S.C. 12106(e) before August 9, 2004,
may continue to operate under that endorsement on and after that date and
may renew the document and endorsement if the certificate of documentation is not subject to—
(1) Exchange under § 67.167(b)(1)
through (b)(3) of this chapter;
(2)
Deletion
under
§ 67.171(a)(1)
through (a)(6) of this chapter; or

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wreier-aviles on DSK3TPTVN1PROD with CFR

§ 68.107

46 CFR Ch. I (10–1–11 Edition)

(3) Cancellation under § 67.173 of this
chapter.
(c) A vessel under a demise charter
that was constructed under a building
contract that was entered into before
February 4, 2004, in reliance on a letter
ruling from the Coast Guard issued before February 4, 2004, is eligible for documentation with a coastwise endorsement under § 67.19 of this chapter and 46
U.S.C. 12106(e). The vessel may continue to operate under that endorsement and may renew the document and
endorsement if the certificate of documentation is not subject to—
(1) Exchange under § 67.167(b)(1)
through (b)(3) of this chapter;
(2)
Deletion
under
§ 67.171(a)(1)
through (a)(6) of this chapter; or
(3) Cancellation under § 67.173 of this
chapter.
(d) A barge deemed eligible under 46
U.S.C. 12106(e) and 12110(b) to operate
in coastwise trade before August 9,
2004, may continue to operate in that
trade after that date unless—
(1) The ownership of the barge
changes in whole or in part;
(2) The general partners of a partnership owning the barge change by addition, deletion, or substitution;
(3) The State of incorporation of any
corporate owner of the barge changes;
(4) The barge is placed under foreign
flag;
(5) Any owner of the barge ceases to
be a citizen within the meaning of part
67, subpart C, of this chapter; or
(6) The barge ceases to be capable of
transportation by water.
(e) A barge under a demise charter
that was constructed under a building
contract that was entered into before
February 4, 2004, in reliance on a letter
ruling from the Coast Guard issued before February 4, 2004, is eligible to operate in coastwise trade under 46 U.S.C.
12106(e) and 12110(b). The barge may
continue to operate in coastwise trade
unless—
(1) The ownership of the barge
changes in whole or in part;
(2) The general partners of a partnership owning the barge change by addition, deletion, or substitution;
(3) The State of incorporation of any
corporate owner of the barge changes;
(4) The barge is placed under foreign
flag;

(5) Any owner of the barge ceases to
be a citizen within the meaning of subpart C of this part; or
(6) The barge ceases to be capable of
transportation by water.
§ 68.107 Application procedure for vessels other than barges to be operated in coastwise trade without
being documented.
(a) In addition to the items under
§ 67.141 of this chapter, the person that
owns the vessel (other than a barge
under § 68.109) and that seeks a coastwise endorsement under this subpart
must submit the following to the National Vessel Documentation Center:
(1) A certification in the form of an
affidavit and, if requested by the Director, National Vessel Documentation
Center, supporting documentation establishing the following facts with respect to the transaction from an individual who is authorized to provide certification on behalf of the person that
owns the vessel and who is an officer in
a corporation, a partner in a partnership, a member of the board of managers in a limited liability company, or
their equivalent. The certificate must
certify the following:
(i) That the person that owns the vessel, the parent of that person, or a subsidiary of a parent of that person is primarily engaged in leasing or other financing transactions.
(ii) That the person that owns the
vessel is organized under the laws of
the United States or a State.
(iii) That none of the following is primarily engaged in the direct operation
or management of vessels:
(A) The person that owns the vessel.
(B) The parent of the person that
owns the vessel.
(C) The group of which the person
that owns the vessel is a member.
(iv) That ownership of the vessel is
primarily a financial investment without the ability and intent to directly
or indirectly control the vessel’s operations by a person not primarily engaged in the direct operation or management of vessels.
(v) That the majority of the aggregate revenues of each of the following
is not derived from the operation or
management of vessels:
(A) The person that owns the vessel.

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Coast Guard, Dept. of Homeland Security
(B) The parent of the person that
owns the vessel.
(C) The group of which the person
that owns the vessel is a member.
(vi) That none of the following is primarily engaged in the operation or
management of commercial, foreignflag vessels used for the carriage of
cargo for parties unrelated to the vessel’s owner or charterer:
(A) The person that owns the vessel.
(B) The parent of the person that
owns the vessel.
(C) The group of which the person
that owns the vessel is a member.
(vii) That the person that owns the
vessel has transferred to a qualified
United States citizen under 46 U.S.C.
app. 802 full possession, control, and
command of the U.S.-built vessel
through a demise charter in which the
demise charterer is considered the
owner pro hac vice during the term of
the charter.
(viii) That the vessel is financed with
lease financing.
(2) A copy of the charter, which must
provide that the charterer is deemed to
be the owner pro hac vice for the term
of the charter.
(b) The charterer must submit the
following to the National Vessel Documentation Center:
(1) A certificate certifying that the
charterer is a citizen of the United
States for the purpose of engaging in
the coastwise trade under 46 U.S.C.
app. 802.
(2) Detailed citizenship information
in the format of form CG–1258, Application for Documentation, section G,
citizenship. The citizenship information may be attached to the form CG–
1258 that is submitted under § 67.141 of
this chapter and must be signed by, or
on behalf of, the charterer.
(c) Whenever a charter under paragraph (a) of this section is amended,
the vessel owner must file a copy of the
amendment with the Director, National Vessel Documentation Center,
within 10 days after the effective date
of the amendment.
(d) Whenever the charterer of a vessel
under paragraph (a) of this section enters into a sub-charter that is a demise
charter with another person for the use
of the vessel, the charterer must file a
copy of the sub-charter and amend-

§ 68.109

ments to the sub-charter with the Director, National Vessel Documentation
Center, within 10 days after the effective date of the sub-charter and the
sub-charterer must provide detailed
citizenship information in the format
of form CG–1258, Application for Documentation, section G, citizenship.
(e) Whenever the charterer of a vessel
under paragraph (a) of this section enters into a sub-charter other than a demise charter with another person for
the use of the vessel, the charterer
must file a copy of the sub-charter and
amendments to the sub-charter with
the Director, National Vessel Documentation Center, within 10 days after
a request by the Director to do so.
(f) A person that submits a false certification under this section is subject
to penalty under 46 U.S.C. 12122 and 18
U.S.C. 1001.
§ 68.109 Application
procedure
for
barges to be operated in coastwise
trade without being documented.
(a) The person that owns a barge
qualified to engage in coastwise trade
under the lease-financing provisions of
46 U.S.C. 12106(e) must submit the following to the National Vessel Documentation Center:
(1) A certification in the form of an
affidavit and, if requested by the Director, National Vessel Documentation
Center, supporting documentation establishing the following facts with respect to the transaction from an individual who is authorized to provide certification on behalf of the person that
owns the barge and who is an officer in
a corporation, a partner in a partnership, a member of the board of managers in a limited liability company, or
their equivalent. The certificate must
certify the following:
(i) That the person that owns the
barge, the parent of that person, or a
subsidiary of the parent of that person
is primarily engaged in leasing or other
financing transactions.
(ii) That the person that owns the
barge is organized under the laws of
the United States or a State.
(iii) That none of the following is primarily engaged in the direct operation
or management of vessels:
(A) The person that owns the barge.

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§ 68.111

46 CFR Ch. I (10–1–11 Edition)

(B) The parent of the person that
owns the barge.
(C) The group of which the person
that owns the barge is a member.
(iv) That ownership of the barge is
primarily a financial investment without the ability and intent to directly
or indirectly control the barge’s operations by a person not primarily engaged in the direct operation or management of the barge.
(v) That the majority of the aggregate revenues of each of the following
is not derived from the operation or
management of vessels:
(A) The person that owns the barge.
(B) The parent of the person that
owns the barge.
(C) The group of which the person
that owns the barge is a member.
(vi) That none of the following is primarily engaged in the operation or
management of commercial, foreignflag vessels used for the carriage of
cargo for parties unrelated to the vessel’s owner or charterer:
(A) The person that owns the barge.
(B) The parent of the person that
owns the barge.
(C) The group of which the person
that owns the barge is a member.
(vii) That the person that owns the
barge has transferred to a qualified
United States citizen under 46 U.S.C.
app. 802 full possession, control, and
command of the U.S.-built barge
through a demise charter in which the
demise charterer is considered the
owner pro hac vice for the term of the
charter.
(viii) That the barge is qualified to
engage in the coastwise trade and that
it is owned by a person eligible to own
vessels documented under 46 U.S.C.
12102(e).
(ix) That the barge is financed with
lease financing.
(2) A copy of the charter, which must
provide that the charterer is deemed to
be the owner pro hac vice for the term
of the charter.
(b) The charterer must submit the
following to the National Vessel Documentation Center:
(1) A certificate certifying that the
charterer is a citizen of the United
States for engaging in the coastwise
trade under 46 U.S.C. app. 802.

(2) Detailed citizenship information
in the format of form CG–1258, Application for Documentation, section G,
citizenship. The citizenship information must be signed by, or on behalf of,
the charterer.
(c) Whenever a charter under paragraph (a) of this section is amended,
the barge owner must file a copy of the
amendment with the Director, National Vessel Documentation Center,
within 10 days after the effective date
of the amendment.
(d) Whenever the charterer of a barge
under paragraph (a) of this section enters into a sub-charter that is a demise
charter with another person for the use
of the barge, the charterer must file a
copy of the sub-charter and amendments to the sub-charter with the Director, National Vessel Documentation
Center, within 10 days after the effective date of the sub-charter and the
sub-charterer must provide detailed
citizenship information in the format
of form CG–1258, Application for Documentation, section G, citizenship.
(e) Whenever the charterer of a barge
under paragraph (a) of this section enters into a sub-charter other than a demise charter with another person for
the use of the barge, the charterer
must file a copy of the sub-charter and
amendments to the sub-charter with
the Director, National Vessel Documentation Center, within 10 days after
a request by the Director to do so.
(f) A person that submits a false certification under this section is subject
to penalty under 46 U.S.C. 12122 and 18
U.S.C. 1001.
§ 68.111 Invalidation of a coastwise endorsement.
(a) In addition to the events in
§ 67.167(c)(1) through (c)(9) of this chapter, a Certificate of Documentation together with a coastwise endorsement in
effect before February 4, 2004, becomes
invalid when—
(1) The demise charter expires or is
transferred to another charterer;
(2) The citizenship of the charterer or
sub-charterer changes to the extent
that they are no longer qualified for a
coastwise endorsement; or
(3) Neither the person that owns the
vessel, nor the parent of that person,
nor a subsidiary of the parent of that

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Coast Guard, Dept. of Homeland Security
person is primarily engaged in leasing
or other financing transactions.
(b) In addition to the events in
§ 67.167(c)(1) through (c)(9) of this chapter, a Certificate of Documentation together with a coastwise endorsement in
effect on or after February 4, 2004, and
before August 9, 2004, becomes invalid
when—
(1) The demise charter expires or is
transferred to another charterer;
(2) The citizenship of the charterer or
sub-charterer changes to the extent
that they are no longer qualified for a
coastwise endorsement;
(3) Neither the person that owns the
vessel, nor the parent of that person,
nor any subsidiary of the parent of that
person is primarily engaged in leasing
or other financing transactions;
(4) The majority of the aggregate revenues of at least one of the following is
derived from the operation or management of vessels:
(i) The person that owns the vessel.
(ii) The parent of the person that
owns the vessel.
(iii) The group of which the person
that owns the vessel is a member; or
(5) At least one of the following is
primarily engaged in the operation or
management of commercial, foreignflag vessels used for the carriage of
cargo for parties unrelated to the vessel’s owner or charterer:
(i) The person that owns the vessel.
(ii) The parent of the person that
owns the vessel.
(iii) The group of which the person
that owns the vessel is a member.
(c) When the coastwise endorsement
for a vessel to which this subpart applies becomes invalid under paragraph
(a)(1) or (b)(1) of this section, the vessel
remains eligible for documentation
under this subpart provided it is a vessel to which § 68.100(b) or (c) applies.

Pt. 69

69.9 Definitions.
69.11 Determining the measurement system
or systems for a particular vessel.
69.13 Deviating from the provisions of a
measurement system.
69.15 Authorized measurement organizations.
69.17 Application for measurement services.
69.19 Remeasurement and adjustment of
tonnage.
69.21 Right of appeal.
69.23 Fees.
69.25 Penalties.
69.27 Delegation of authority to measure
vessels.
69.29 OMB control numbers assigned under
the Paperwork Reduction Act.

Subpart B—Convention Measurement
System
69.51 Purpose.
69.53 Definitions.
69.55 Application for measurement services.
69.57 Gross tonnage.
69.59 Enclosed spaces.
69.61 Excluded spaces.
69.63 Net tonnage.
69.65 Calculation of volumes.
69.67 Marking of cargo spaces.
69.69 Issuance of an International Tonnage
Certificate (1969).
69.71 Change of net tonnage.
69.73 Variance from the prescribed method
of measurement.
69.75 Figures.

Subpart C—Standard Measurement System
69.101 Purpose.
69.103 Definitions.
69.105 Application for measurement services.
69.107 Gross and net tonnages.
69.109 Under-deck tonnage.
69.111 Between-deck tonnage.
69.113 Superstructure tonnage.
69.115 Excess hatchway tonnage.
69.117 Spaces exempt from inclusion in
gross tonnage.
69.119 Spaces deducted from gross tonnage.
69.121 Engine room deduction.
69.123 Figures.

Subpart D—Dual Measurement System

PART 69—MEASUREMENT OF
VESSELS

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Subpart A—General
Sec.
69.1 Purpose.
69.3 Applicability.
69.5 Vessels required or eligible to be measured.
69.7 Vessels transiting the Panama and
Suez Canals.

69.151 Purpose.
69.153 Application of other laws.
69.155 Measurement requirements.
69.157 Definitions.
69.159 Application for measurement services.
69.161 Gross and net tonnages.
69.163 Under-deck tonnage.
69.165 Between-deck tonnage.
69.167 Superstructure tonnage.
69.169 Spaces exempt from inclusion in
gross tonnage.

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