[Title 46 CFR B]
[Code of Federal Regulations (annual edition) - October 1, 2006 Edition]
[Title 46 - SHIPPING]
[Chapter I - COAST GUARD, DEPARTMENT OF HOMELAND SECURITY (CONTINUED)]
[Subchapter G - DOCUMENTATION AND MEASUREMENT OF VESSELS]
[Part 67 - DOCUMENTATION OF VESSELS]
[Subpart B - Forms of Documentation; Endorsements; Eligibility of Vessel]
[From the U.S. Government Publishing Office]


46SHIPPING22006-10-012006-10-01falseForms of Documentation; Endorsements; Eligibility of VesselBSubpart BSHIPPINGCOAST GUARD, DEPARTMENT OF HOMELAND SECURITY (CONTINUED)DOCUMENTATION AND MEASUREMENT OF VESSELSDOCUMENTATION OF VESSELS
  Subpart B_Forms of Documentation; Endorsements; Eligibility of Vessel



Sec. 67.15  Form of document--all endorsements.

    (a) The form of document is a Certificate of Documentation, form CG-
1270.
    (b) Upon application in accordance with subpart K of this part and 
determination of qualification by the Director, National Vessel 
Documentation Center, a Certificate of Documentation may be issued with 
a registry, coastwise, Great Lakes, fishery, or recreational 
endorsement.
    (c) A Certificate of Documentation may bear simultaneous 
endorsements for recreation and more than one trade, including operation 
under 46 CFR part 68.

    Note: Where a vessel possesses a Certificate of Documentation 
bearing more than one endorsement, the actual use of the vessel 
determines the endorsement under which it is operating.

[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 31604, June 15, 1995; USCG-
1999-6216, 64 FR 53225, Oct. 1, 1999]



Sec. 67.17  Registry endorsement.

    (a) A registry endorsement entitles a vessel to employment in the 
foreign trade; trade with Guam, American Samoa, Wake, Midway, or Kingman 
Reef; and any other employment for which a coastwise, Great Lakes, or 
fishery endorsement is not required.
    (b) Any vessel eligible for documentation under Sec. 67.5 is 
eligible for a registry endorsement.
    (c) A vessel otherwise eligible for a registry endorsement for which 
the Maritime Administration has not given approval for unrestricted 
transfer pursuant to 46 CFR part 221 loses that eligibility during any 
period in which it is mortgaged to a person not identified in Sec. 
67.233(b).



Sec. 67.19  Coastwise or Great Lakes endorsement.

    (a) A coastwise endorsement entitles a vessel to employment in 
unrestricted

[[Page 344]]

coastwise trade, dredging, towing, and any other employment for which a 
registry, fishery, or Great Lakes endorsement is not required.
    (b) A Great Lakes endorsement entitles a vessel to employment in the 
Great Lakes trade, towing in the Great Lakes, and any other employment 
for which a registry, fishery, or coastwise endorsement is not required.
    (c) If eligible for documentation and not restricted from coastwise 
or Great Lakes trade by paragraph (d) or (e) of this section, the 
following vessels are eligible for a coastwise or Great Lakes 
endorsement or both:
    (1) Vessels built in the United States (Sec. 67.97);
    (2) Forfeited vessels (Sec. 67.131);
    (3) Vessels granted coastwise trading privileges by special 
legislation (Sec. 67.132);
    (4) Wrecked vessels (Sec. 67.133);
    (5) Captured vessels (Sec. 67.134); and
    (6) Vessels purchased, chartered, or leased from the Secretary of 
Transportation by persons who are citizens of the United States (46 
U.S.C. app. 808).
    (d) A vessel otherwise eligible for a coastwise or Great Lakes 
endorsement under paragraph (c) of this section permanently loses that 
eligibility if:
    (1) It is thereafter sold in whole or in part to an owner:
    (i) Not a citizen as defined in subpart C of this part, or
    (ii) Not a person permitted to document vessels pursuant to 46 CFR 
part 68;
    (2) It is thereafter registered under the laws of a foreign country;
    (3) It undergoes rebuilding as defined in Sec. 67.177 outside of 
the United States; or
    (4) It is a crude oil tanker of 20,000 deadweight tons or above, and 
after October 17, 1978, has segregated ballast tanks, a crude oil 
washing system, or an inert gas system installed outside of the United 
States as defined in Sec. 67.3.
    (e) A vessel otherwise eligible for a coastwise or Great Lakes 
endorsement under paragraph (c) of this section loses that eligibility, 
except as provided in paragraph (f) of this section, during any period 
in which it is:
    (1) Owned by a corporation which does not meet the citizenship 
requirements of Sec. 67.39(c);
    (2) Owned by a partnership which does not meet the citizenship 
requirements of Sec. 67.35(a); or
    (3) Mortgaged to a person not identified in Sec. 67.233(b).
    (f) The restriction imposed by paragraph (e)(2) of this section does 
not apply to any vessel for which the Maritime Administration has given 
approval for unrestricted transfer pursuant to regulations set forth in 
46 CFR part 221.

[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65131, Dec. 
13, 1993, as amended by CGD 94-008, 59 FR 49846, Sept. 30, 1994; CGD 94-
040, 61 FR 17815, Apr. 22, 1996; USCG-2002-13058, 67 FR 61278, Sept. 30, 
2002]



Sec. 67.20  Coastwise endorsement for a vessel under a demise charter.

    (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 Sec. 
67.19(c), has not lost coastwise eligibility under Sec. 67.19(d), 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.

[[Page 345]]

    (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 Sec. 67.19 and 
46 U.S.C. 12106(e) before February 4, 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 Sec. 67.167(b)(1) through (b)(3);
    (2) Deletion under Sec. 67.171(a)(1) through (a)(6); or
    (3) Cancellation under Sec. 67.173.
    (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 Sec. 67.19 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 Sec. 67.167(b)(1) through (b)(3);
    (2) Deletion under Sec. 67.171(a)(1) through (a)(6); or
    (3) Cancellation under Sec. 67.173.
    (d) A barge deemed eligible under 46 U.S.C. 12106(e) and 12110(b) to 
operate in coastwise trade before February 4, 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 subpart C of this part; 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

[[Page 346]]

    (6) The barge ceases to be capable of transportation by water.
    (f) To apply for a coastwise endorsement for a vessel under a demise 
charter, see Sec. 67.147 and, for a barge, see Sec. 67.179.

[USCG-2001-8825, 69 FR 5400, Feb. 4, 2004]



Sec. 67.21  Fishery endorsement.

    (a) A fishery endorsement entitles a vessel to employment in the 
fisheries as defined in Sec. 67.3, subject to Federal and State laws 
regulating the fisheries, and in any other employment for which a 
registry, coastwise, or Great Lakes endorsement is not required. A 
fishery endorsement entitles a vessel to land its catch, wherever 
caught, in the United States.
    (b) If eligible for documentation and not restricted from the 
fisheries by paragraph (c) of this section, the following vessels are 
eligible for a fishery endorsement:
    (1) Vessels built in the United States (Sec. 67.97);
    (2) Forfeited vessels (Sec. 67.131);
    (3) Vessels granted fisheries privileges by special 
legislation(Sec. 67.132);
    (4) Wrecked vessels (Sec. 67.133); and
    (5) Captured vessels (Sec. 67.134).
    (c) A vessel otherwise eligible for a fishery endorsement under 
paragraph (b) of this section permanently loses that eligibility if it 
undergoes rebuilding as defined in Sec. 67.177 outside of the United 
States.
    (d) A vessel otherwise eligible for a fishery endorsement under 
paragraph (b) of this section loses that eligibility during any period 
in which it is:
    (1) Owned by a partnership which does not meet the requisite 
citizenship requirements of Sec. 67.35(b);
    (2) Owned by a corporation which does not meet the citizenship 
requirements of Sec. 67.39(b); or
    (3) Chartered or leased to an individual who is not a citizen of the 
United States or to an entity that is not eligible to own a vessel with 
a fishery endorsement, except that time charters, voyage charters and 
other charters that are not a demise of the vessel may be entered into 
with Non-Citizens for the charter of dedicated Fish Tender Vessels and 
Fish Processing Vessels that are not engaged in the harvesting of fish 
or fishery resources without the vessel losing its eligibility for a 
fishery endorsement.
    (e) A vessel operating with a fishery endorsement on October 1, 
1998, under the authority of the Western Pacific Fishery Management 
Council, or a purse seine vessel engaged in tuna fishing outside of the 
EEZ of the United States or pursuant to the South Pacific Regional 
Fisheries Treaty may continue to operate as set out in 46 U.S.C. 
12102(c)(5), provided that the owner of the vessel continues to comply 
with the fishery endorsement requirements that were in effect on October 
1, 1998.
    (f) An individual or entity that is otherwise eligible to own a 
vessel with a fishery endorsement shall be ineligible if an instrument 
or evidence of indebtedness, secured by a mortgage of the vessel, to a 
trustee eligible to own a vessel with a fishery endorsement is issued, 
assigned, transferred, or held in trust for a person not eligible to own 
a vessel with a fishery endorsement, unless the Commandant determines 
that the issuance, assignment, transfer, or trust arrangement does not 
result in an impermissible transfer of control of the vessel and that 
the trustee:
    (1) Is organized as a corporation that meets Sec. 67.39(b) of this 
part, and is doing business under the laws of the United States or of a 
State;
    (2) Is authorized under those laws to exercise corporate trust 
powers which meet Sec. 67.36(b) of this part;
    (3) Is subject to supervision or examination by an official of the 
United States Government or a State;
    (4) Has a combined capital and surplus (as stated in its most recent 
published report of condition) of at least $3,000,000; and
    (5) Meets any other requirements prescribed by the Commandant.
    For vessels greater than or equal to 100 feet in length, approval of 
such an arrangement from the Maritime Administration will be accepted as 
evidence that the above conditions are met and will be approved by the 
Commandant. For vessels less than 100 feet,

[[Page 347]]

a standard loan and mortgage agreement that has received general 
approval under 46 CFR 356.21 will be accepted as evidence that the above 
conditions are met and will be approved by the Commandant.

[CGD 89-007, CGD 89-007A, 58 FR 60266, Nov. 15, 1993, as amended by CGD 
94-040, 61 FR 17815, Apr. 22, 1996; USCG-1999-6095, 65 FR 76575, Dec. 7, 
2000]



Sec. 67.23  Recreational endorsement.

    (a) A recreational endorsement entitles a vessel to pleasure use 
only.
    (b) Any vessel eligible for documentation under Sec. 67.5 is 
eligible for a recreational endorsement.

    Note: A vessel having a Certificate of Documentation endorsed only 
for recreation may be bareboat chartered only for recreational use. 
Guidance on the elements of a valid bareboat charter should be obtained 
through private legal counsel.