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Can a
mortgagee block changes in my documentation? -
Yes, the lender must sign a written consent before you can make any
changes whatsoever in your documentation status. This includes
vessel name or hailing port changes, changes in endorsements, and
transfers of ownership. You can grant another mortgage without the
bank's consent, but this will likely create a default under the
terms of your loan contract.
Can Coast Guard documented vessels share the same name?
- Yes, vessel names are not exclusive and any number of
documented vessels can share the same name. In order to see how many
vessels are documented under a particular name, you can visit the
"Vessel Record Search" section of our "Database" page and perform a vessel documentation search.
Can I assign
ownership on my vessel's certificate of documentation? - Yes, a certificate of documentation
will serve as evidence of transfer if ownership is properly assigned
on the reverse side by the documented owner. If the document is not assigned, or a
subsequent
applicant is someone other than the assignee, it will be necessary to
chain ownership forward with recordable transfer instruments such as
a Bill of Sale, Deed of Gift, or Transfer of Interest.
Can I
convert my state title or registration to Coast Guard documentation? - Yes,
this is quite easy if the vessel is over approximately 25' and
you are a U.S. citizen. All you need to do is present a copy of your
title or current registration to the Coast Guard along with the
appropriate application forms. You will then need to surrender your
original state title to the state along with a notification that the
vessel has become documented. In some states, you may need to
maintain a registration certificate even though the vessel has become
documented.
Can I Coast
Guard document
a vessel outside of the U.S.?
- Yes, the vessel's location is not a factor in
obtaining Coast Guard vessel documentation if you are a U.S.
citizen. In fact, priority handling for the issuance of a
certificate of documentation is usually afforded to U.S. citizens
when cruising abroad.
Can I Coast Guard document my
vessel if I
have a green card? - You can not
apply for Coast Guard documentation until you can certify that you
have already become naturalized. Until then, you can register on the
state level or with the country in which you currently hold
citizenship.
Can I Coast Guard document my
boat from a state level registration? - The Coast Guard will
accept a copy of the current state registration or a copy of the
state title. If ownership has changed, it must be accompanied by a
transfer instrument such as a bill of sale. When documenting a state
titled vessel, such title must be surrendered after the
documentation is complete. The state registration may need to be
maintained, depending on your particular state's regulations.
Can
I operate my vessel while awaiting the certificate of documentation? - If the vessel is used for
recreational purposes only, you can operate it while waiting for
your document to be issued. However this only applies if you are in
compliance with any state level requirements for registration of
documented vessels. You can not engage in commercial operations
without a properly endorsed certificate of documentation on board
the vessel. While operating without a document, you should keep
copies of your application and any documents which serve as proof
that you own the vessel.
Can my documented vessel be requisitioned during a national
emergency? - Coast Guard documentation is a national
registry which provides the federal government with ready access to
the particulars of your vessel. These include cargo capacities which
will be of particular importance. Accordingly, this will become the
primary resource for requisitioning should a national emergency
warrant such measures. However, the possibility of this event is
extremely remote.
Does Coast Guard documentation exempt my vessel from taxes?
- Although Coast Guard documentation may exempt vessels from
having to obtain registration certificates in certain states, it
does not generally exempt them from tax liabilities such as sales
tax, excise tax, personal property tax, and other local taxes. The
exceptions may be those situations where commercially documented
boats become exempt from certain taxes by merit of their operations.
This would be determined on a state-by-state basis.
Does the
Coast Guard collect taxes or duties?
- The Coast Guard's National Vessel Documentation Center is
not involved in the collection of any taxes or duties. When applying
for documentation, it is simply a matter of paying the appropriate
recording fees. Taxes are typically paid when registering a boat on
the state level and duties are paid on entry when a boat is
imported.
How
can I remove a vessel claim of lien? - Once recorded,
claims of lien will become permanent entries on the vessel's
underlying abstract of title. In order to offset such entries, the
claimant must submit a satisfaction or release
recording as evidence that the obligation has been discharged. If
the claimant fails or refuses to do so, the claim must be vacated by
judicial means.
How
do I change my legal name on the documentation? - A
legal name change is not viewed as a transfer of ownership. However,
it will be necessary to apply for re-documentation under the new
legal name. In order to do so, you will need to provide copies of
the court documents approving such action.
How do I change vessel
dimensions on my document? - You should first be aware the the
Coast Guard does not use length measurements which include overhangs
such as bowsprits and swim steps. The depth measurement is not just
the draft, but a measurement from the top of the hull amidships to
the very bottom of the vessel. If the dimensions were initially
provided from a Builder's Certification, it will be necessary to
obtain a letter of correction from the builder. Otherwise it is
simply a matter of submitting a revised "Application for Simplified
Measurement" along with a letter of explanation. Dimension changes
on vessels 79' and over must be handled through an approved
measurement company. Changes in vessel measurements can only be
accomplished in conjunction with a re-documentation.
How do I determine the
vessel tonnage for documentation?
- There are various methods of measuring a vessel depending on
its size and intended usage. Most recreational vessels under 79' are
measured via the simplified system for documentation purposes. This
is basically a matter of providing a builder's certification showing
the dimensions or completing an "Application for Simplified
Measurement". Larger vessels must be formally measured by a Cost
Guard approved measurement service company.
How do I document a boat or vessel with the Coast Guard?
- In order to qualify for Coast Guard documentation, the
vessel must measure at least 5 net tons by volume. This equates to
approximately 25' in length. You will find an interactive
measurement form in our Federal Page that will help determine the
vessel's gross and net tonnage. In general, the owner must also be a
U.S. citizen. It is then a matter of deciding whether you want to
complete the application forms yourself or wish to hire a full
service documentation company to do this on your behalf. Of course,
there will be a considerable difference in the overall cost.
Documenting it yourself is not all that difficult, but you will
need to invest a certain amount time in figuring out the
instructions. Information about vessel documentation self and full
services can be found in our Vessel Documentation Services Page.
How do I file a vessel claim of
lien? - A "Notice of Claim of Lien" can be filed
against a documented vessel by any party having a lien or claim on
the vessel. However, the vessel must be currently documented or in
the process of becoming documented. A notice of claim of lien serves only to
create a cloud on the title, does not prevent subsequent transfers
of title, and affords no rights of foreclosure upon the claimant.
How do I remove a
divorced spouse from Coast Guard documentation? - In most cases, the courts will
issue a "Divorce Decree" which will award the vessel as part of a
settlement. Ownership can be changed by re-documenting the vessel
with a copy of the decree. The decree must however, identify the
vessel by its official number or hull identification number. The
awarding spouse would otherwise have to execute a transfer of
interest for half interest in the vessel. If the abstract of title
is subject to a preferred mortgage, the change of ownership will be
subject to the lender's written consent.
How do I remove
a vessel mortgage or lien from Coast Guard documentation? - A mortgagee,
claimant, or its successor in interest is required to file a release
upon settlement of the underlying obligation. This becomes recorded
on the vessel's abstract of title as an offset to the respective
mortgage or claim. If the mortgagee or claimant has failed to file
such release and is no longer available, the only remaining option
would be to obtain a court order to have the recording vacated.
Is a
Coast Guard documented vessel exempt from state
registration? - Federal regulations prohibit
state titling of documented vessels. However, the states may at
their option issue yearly registration certificates for revenue
collection and other purposes. Certain states exempt documented
vessels from registration requirements.
Is my vessel large
enough for Coast Guard documentation? - In basic terms, a vessel
must measure in volume at a minimum of five net tons. Depending the
length beam, and overall depth, most vessels will need to be at
least approximately 25 feet in length to
qualify. Vessel tonnage is determined by a measurement process
rather than by calculating the vessel's weight or displacement.
Must I obtain Coast
Guard documentation my
vessel for
six-pack charter?
- Yes, even if you carry one passenger for hire you must have
the boat documented and obtain a coastwise endorsement. The only
charter operation that qualifies as recreational usage is a
bare-boat charter where the boat is rented or leased and not
skippered by the owner or owner's agent.
Should I accept a certificate of vessel documentation at face value?
- A Coast Guard certificate of documentation should always be
supported by the vessel's abstract of title. The certificate may not
be the latest issue, may not show complete ownership information in
some cases, and does not show any liens or encumbrances. Abstracts
can usually be obtained from the Coast Guard within 24 to 48
business hours.
Should I notify the Coast Guard upon transferring ownership?
- Unless you are certain the new owner will immediately
re-document the vessel, you should submit a written request for
removal of the documentation. It is also a good idea to record the
bill of sale or other instrument of transfer as an optional part of
this process. The underlying abstract of title will then show the
new owner's name, even though the documentation has not been
reinstated. The new owner can apply for re-documentation at any time
thereafter, if such party is a U.S. citizen.
Must I renew my Coast Guard certificate of
documentation?
- The certificate must be renewed annually based on the date
of issue. There is no renewal fee if renewed before the expiration
date. The Coast Guard will send a Notice of Renewal to the address
they have on record for the managing owner approximately 45 days
prior to expiration. However, it is the owner's responsibility to
renew even though such notification was not received. A late fee of
$5.00 will be assessed for late renewals which do not exceed 30
days. After that time, an Application for Documentation to file for
a reinstatement must be submitted with the appropriate fees. You
will find a Renewal Certification form with instructions on our
Forms page and a Reinstatement of Documentation kit on our Services
page.
Must my vessel be U.S built to
qualify for Coast Guard documentation?
Although the place of build is not an issue for recreational
vessels, evidence that a vessel was built in the United States is
required for those which are to be used in a fisheries or coastwise
trade. Such evidence usually comes in the form of a Builder's
Certification which is issued by the manufacturer.
What are citizenship
requirements for Coast Guard documentation? - As
a general rule, all owners of a documented vessel must be US
Citizens. This also applies to legal entities such as Corporations,
Limited Liability Companies, and Partnerships. Corporations must be
registered in the U.S. in order to own a documented vessel.
Principals who own and operate corporations other legal entities
that own a documented vessel must be U.S. Citizens in their own
right. An individual person who owns all or part interest in a
documented vessel must be native born, naturalized, or a derivative
U.S. citizen. Cost Guard documented vessels may be operated or
placed under the command of a foreign citizen only if the vessel is
used for recreational purposes.
What are
citizenship requirements for an LLC? It all depends on
how the LLC is organized and whether there will be commercial
endorsements. If the LLC is member managed, all members must be U.S.
citizens. If not, the managing party must be a U.S. citizen. In
either event, the total equity owned must typically be at least 50%
for recreational use and 75% for commercial use. You should contact
the National Vessel Documentation Center if the LLC structure is
complex. They may ultimately need a copy of the articles of
organization to make a determination.
What are documentation
home and hailing ports? - Prior to the
consolidation of various regional vessel documentation offices into
one central location, the city of such locations was known as the
home port. With the elimination of these offices, the "home port"
concept no longer applied and such declarations are not currently
part of the documentation process. A hailing port is simply the city
and state which must accompany the vessel name on a documented
vessel. This designation has no relation to where the vessel is
moored or operated and can be any city and state with a U.S. postal
zip code. In order to change an existing name or hailing port, it
will be necessary to re-document the vessel.
What are
penalties for Coast Guard documentation violations?
- The Coast Guard Authorization Act of 1996 included legislation
which increased the penalties for violations of documentation laws. The
maximum penalty each day of continuous violation is now $10,000 per day.
Situations which allow for forfeiture and seizure of the vessel have
also been expanded. In addition, there a general federal law that cites a $10,000 fine and/or 10 years
imprisonment for providing a false representation or statement to a
government official.
What are the vessel
documentation requirements for a trust?
- The Coast Guard views a trust as an arrangement where one
or more parties hold title to the vessel for the benefit of another. Accordingly,
ownership must be listed in the name of the trustee or trustees, which
can then be qualified by the name of the trust (e.g. "John Doe,
Trustee of The Doe Family Trust"). Each trustee and each beneficiary
with an enforceable interest in a trust arrangement must be a U.S.
citizen.
What are vessel documentation title requirements? - In
order to document a vessel for the first time or re-document a
previously documented vessel, the applicant must provide evidence of
title or proof of ownership. Title requirements are
typically met by providing the documentation office with a builder's
certification, manufacturer's statement of origin, or evidence showing
the existence of a previous title or registration. If these are not in
the applicant's name, a chain of recordable transfer instruments must be
presented
showing that the ownership was carried forward.
What
is a vessel Claim of Lien? - A claim of lien is a
type of filing where the claimant may unilaterally record an
obligation or debt which was created by a Coast Guard documented vessel. In
order to record a claim, the vessel must be currently documented or
a valid
application for documentation must be in progress. The recording does not validate a claim
and judicial action must taken as a method of foreclosure. It's
primary function is to notify the owner, other mortgagees or
claimants, and any interested parties of the claim. A claim of lien
does not preclude transfers of ownership.
What is Coast Guard
vessel documentation? - Coast Guard
documentation is a national form of vessel registration which
is administered by the U.S. Coast Guard's National Vessel
Documentation Center. It is one of the oldest functions of our
Government, dating back to the 11th Act of the First Congress.
Vessels that meet the required qualifications are issued a
Certificate of Documentation which serves as evidence of ownership
and entitles the vessel to engage in certain commercial activities.
Although vessel documentation is optional for vessels that operate
exclusively for recreational purposes, it is required for vessels
that will engage in commercial activities within U.S. waters.
Certificates of documentation for commercial vessels must be
endorsed for the respective types of usage.
What is a Coast Guard
documentation abstract of title? - One of the fundamental differences between U.S. Coast Guard
documentation and state level boat titling or registration is the manner in
which liens, encumbrances, and ownership transfers are recorded. When a vessel is
initially documented, the NVDC generates a master record that is titled "General
Index or Abstract of Title". Its structure is similar to those employed in the
real estate industry with respect to the methods in which transactions are
recorded. In addition to some basic information about the vessel, all
transactions involving changes of ownership, mortgages, and liens are indexed on
the abstract as separate entries. An abstract also contains notational entries which may be
relevant to the the vessel's ownership or documentation status.
Abstracts of title can be ordered from the "Services" page of our
web site.
What is a coastwise endorsement
for vessel documentation? - A coastwise endorsement entitles a vessel to
employment in unrestricted coastwise trade, dredging, towing, and any
other activities for which a registry or
fishery endorsement is not required. In basic terms, this means that the
vessel can carry cargo and passengers within the U.S. or between U.S.
ports. There are many variations
regarding what actually constitutes coastwise activities and the need
for such endorsement should be given careful consideration. Those in
need of a determination as to whether a coastwise endorsement applies
to a particular operation should contact the Carrier Rulings Branch of the U.S. Customs service or
employ the services of a marine attorney.
What is a recordable instrument
for vessel documentation? - Recordable instruments are those documents
or forms which meet Coast Guard standards for recording transactions on
the vessel's underlying abstract of title. Such instruments are related
exclusively to changes in ownership and the recording of liens or
encumbrances. These include bills of sale, deeds of gift, transfers of
interest, preferred vessel mortgages, mortgage supplements, and lien
claims.
What is a preferred vessel mortgage?
- A preferred vessel mortgage, or ship's mortgage, is an
instrument which is given status as a maritime lien. Depending on
the filing date, the mortgage attains a certain priority in the
event of default. It also gives the mortgagee control of the
documentation in that once filed, the Coast Guard will not allow a
change of vessel ownership, name, and hailing port without the
mortgagee's consent.
What is the size requirement for a vessel name and hailing port?
- All letters or numerals for a vessel name and hailing port must
made in clearly legible letters of the Latin alphabet or Arabic or
Roman numerals and must be as least 4 inches in height.
What
location must I choose for a vessel hailing port?
- The vessel hailing port is no longer related to where you reside
or where the boat is moored. You can choose any city and state or
U.S. territory you wish for the hailing port if it has a zip code
listing. However, you should not include the zip code in the hailing
port.
What should I do if the terms of my vessel mortgage change?
- If the terms of an active preferred vessel mortgage change, you
should record a Amendment of Mortgage to reflect the new terms. The
same applies to any changes in a promissory note or loan contract
that was submitted as an attachment to the mortgage. When filing an
amendment, the rank and priority of the filing date for the
underlying mortgage remains unchanged.
Where can I get a U.S.
build waiver for vessel documentation?
- The Maritime Administration administers waivers for small
passenger vessels with regard to operation in the coastwise trade.
For further information, please visit
the Build Waiver Application link shown below.
Who administers vessel documentation? - The
National Vessel Documentation Center, which is commonly referred to
as "NVDC" or "documentation center", operates under the direction of
the U.S. Coast Guard's National Maritime Center. It officially
opened its doors on August 1, 1995 as the result of a consolidation
effort wherein fourteen district offices merged in to a single
location at Martinsburg, West Virginia. The center is responsible
for administering all aspects of vessel documentation and the
maintenance of records for all currently documented vessels.
Why must I declare a
managing owner on my vessel documentation?
- In cases where there is more than one owner, the Coast Guard
designates only one of them for mailing, service, and contact
purposes. There are no special obligations for a managing owner
other than to submit a yearly renewal notification for the
certificate of documentation.
Why must I
provide my social security number for vessel documentation? - Unless you
are an entity with a federal tax identification number, you must provide
a social security number.
It is a regulatory requirement and without it you will simply not be
allowed to document your vessel. The Coast Guard is however,
very protective of such information and will not disclose it to the
public.
Why should I document my vessel
with the Coast Guard? - Coast Guard
documentation is not required for pleasure or recreational usage,
which includes bareboat charters. However, there are several reasons
for which vessels are placed into documentation. First, a vessel can
not engage in commercial activities within the United States unless
it becomes documented and attains the respective trade endorsements.
Second, marine lenders usually require vessel documentation in order
to acquire a preferred mortgage which grants the ultimate
contractual lien against any vessel. Third, owners who venture into
international waters usually elect to document their vessels in
order to attain certain protections afforded by the U.S. flag. A
certificate of documentation makes it easier for passage into
foreign ports and is widely accepted by customs officials. Finally,
some owners elect to document their vessel just for the prestige of
owning a vessel which is said to carry the U.S. flag. From a visual
perspective, Coast Guard documentation also precludes vessels
from having to display state registration numbers. |
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