USCG Vessel Documentation FAQs
Frequently asked questions and answers about Coast Guard vessel documentation.
Answers to frequently asked questions about the meaning of Coast Guard vessel documentation, regulatory requirements and application procedures. Learn more now from the marine industry's leading experts in easy to understand terms designed especially for the boating pubic. More detailed information can be found in the references and referrals for this article.
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About Documentation
There are a number of factors to consider in making the right choice for
registering a vessel. Although vessel documentation is optional for
recreational vessels it becomes a requirement for those engaged in
commercial activities.
What is USCG vessel documentation? - Vessel documentation is a
national form of vessel registration that is administered by the U.S. Coast
Guard. It provides global recognition under the United States flag and
confers various operational privileges both foreign and domestically.
What is a documented vessel? - A vessel is said to be documented upon issuance of a valid
certificate of documentation by the National Vessel Documentation Center (NVDC). It serves as evidence of registration and establishes a title that
must be renewed periodically The certificate must be carried on the vessel
at all times while underway.
What vessels can be documented? - In
order to qualify for documentation a vessel must be owned by a
U.S. Citizen and measure at least 5 net tons in terms of volume. Additional
requirements may apply for those engaged in commercial activities.
Who administers vessel documentation? - Vessel documentation is handled by the
Coast Guard's National Vessel Documentation Center (NVDC) which is located in Martinsburg, West Virginia. The NVDC is responsible for all aspects of vessel documentation
including record maintenance for every vessel that has ever been documented.
It is very accessible to the general public and well staffed with highly
trained officials that are very consumer oriented.
Can I do my own documentation?- Absolutely and especially for
recreational purposes which is much easier than dealing the complexities of
commercial usage. There is no need to pay hundreds of dollars to a
documentation company when you have all the necessary resources and
guidelines right here at your fingertips. The NVDC is quite easy to work with and applications can be made
online from its website in just a matter of minutes.
Why should I document my vessel? - USCG vessel documentation is
required for vessels that engage in commercial activities. Although optional
for recreational purposes, there are several advantages for choosing documentation. These include a
much stronger title which is recognized globally, preferential treatment
when applying for vessel loans, state marking avoidance, enhanced resale
value, offshore cruising protections and the prestige of owning a U.S. flagged vessel.
Are documented vessels subject to state registration? - The federal government allows any state at its own option to issue registration certificates on documented vessels.
This is because they are merely viewed as certificates that confer
operational privileges as opposed to titles. State titling on the other hand
is prohibited for documented vessels.
Can a stat title be converted into documentation? - Yes,
this is simply a matter of presenting the NVDC with a copy of the title or current registration
certificate. It must be accompanied by an Application for Documentation and the proper filing fees. Evidence of were the vessel was
built is also required for commercial usage. The respective state must then be notified and the title should be surrendered if applicable.
Can documentation be changed into a state title? - Although not
recommended, it can be
easily done for recreational vessels. The vessel must be formally removed from documentation and all mortgage recordings will have
to be released. The respective state must then be presented with a Certificate of Deletion from the National Vessel Documentation Center. Upon completion
of the changeover, state registration numbers and current tabs must be displayed on the vessel.
Can a documented vessel be taken over by the Government? - The chances of this happening are extremely remote, but it's possible in case of a national emergency. Vessel documentation is a federal
registry and the government will therefore have ready access to the particulars of any documented vessel. These include cargo capacities which
are critical for the transport of supplies and personnel.
Is a documented vessel exempt from taxes? - Documentation does
not shield a vessel from obligations such as sales tax, excise tax, personal property tax, and other local taxes. The exception may be
that commercially documented vessels which
are exempted by merit of their operations.
Does the Coast Guard collect taxes or duties on documented vessels? - The National Vessel Documentation Center is not involved in the collection
of any taxes or import duties. When applying for documentation, it is simply a
matter of paying the appropriate recording fees. Taxes are typically
collected according to state rules and duties upon entry when a boat is imported.
What is a vessel abstract of title? - An abstract of title
is created for every vessel that is placed into documentation. It contains entries of all transactions
affecting the vessel during periods of active enrollment. Recordings include transfers of ownership, preferred mortgages, lien claims, and changes in
the vessel's status. Abstracts are readily available to the general public through the National Vessel Documentation
Center.
Why do marine lenders require vessel documentation? - USCG
documentation allows lenders to record a preferred vessel mortgage which
takes priority over other types of security interests including those filed
on the state level. Such status gives a lender the right to foreclose through a federal proceeding that can involve a U.S. Marshal seizing the vessel anywhere in the country. In certain cases, non-judicial foreclosure may also be an option, depending on the terms of the mortgage and applicable state law. Once a
preferred mortgage is recorded, the vessel owner cannot make changes to the documentation such as transfers of ownership or deletion without the lender’s written consent.
Why is my lender requiring a documentation service? - While
perfecting a vessel loan through a preferred mortgage, the lender must
ensure that it becomes duly recorded. This can not happen unless the vessel
has been properly documented with no superior mortgages already in place.
Mortgages can be filed against a currently documented vessel or in
conjunction with an application. As a measure of precaution, most lenders
will require the involvement of an approved vessel documentation service
company to make sure everything is in order before dispensing the loan
proceeds.
Documentation Process
The vessel
documentation process is administered by the U.S. Coast Guard's National
Vessel Documentation Center (NVDC). Boaters who are about to embark on such
endeavor should become intimately familiar with its operational rules and
regulations.
How do I apply for vessel documentation? - Acquiring USCG documentation is basically a matter of filing an application with the National Vessel Documentation Center. Supporting
items may however be required depending on whether it is an initial documentation, re-documentation, or change of status to an existing documentation.
These may include build evidence, transfer instruments, copies of
previous titles, and measurement certifications - just name a few.
What does vessel documentation cost? - Application fees begin at $84 for re-documentation to $133 for an initial filing. However there are a number of add-on costs
for various endorsements, recording of instruments such as bills of sale, and
other submissions. This is of course, based on the presumption that
applicants will implement their own application. The use of a documentation
servicing agent could add several hundred dollars to
the overall project.
How long does it take to document a vessel? - The National Vessel
Documentation Center's processing times can vary from a few days to
several months depending on its workload,
staffing levels, and recording priorities. These are influenced by a vessel's usage, the type of filing, and whether there are special circumstances
involved. The documentation center publishes on its website a weekly estimation of processing times for various types of applications and recordings.
Can I apply for vessel documentation via fax or email? - Applications,
copies of executed forms and other instruments can now be filed online
or by email as Adobe PDF attachments. There is no need to follow up by
mailing the originals. Facsimile services are no longer available.
Can I apply for documentation if the vessel is outside of the U.S.? - A vessel's location is not a factor in obtaining documentation. In fact,
the National Vessel Documentation Center usually affords priority
handling for the issuance of a certificate of documentation to U.S.
citizens when travelling abroad. The application process is basically
the same except that notarization of certain required items and
instruments can become an issue in some countries.
What are vessel documentation processing priorities? - The National Vessel Documentation Center has a priority system under which applications and other submissions are processed. This
is based on the date received, the vessel's trade status, the type of submission, and special circumstances. As a general rule, all filings
related to vessels with commercial endorsements are given automatic priority. However, recreational vessels may also
qualify if about to embark on
a foreign voyage.
How do I designate a hailing port for vessel documentation? - A
hailing port is the city and state designation which must be marked on
the exterior of a documented vessel.
Such choice can be arbitrary so long as it coincides with a legitimate U.S. or territorial postal zone. It does not have to identify the
moorage location or owner's place of residence.
Who is the managing owner for vessel documentation? - A managing owner is the party with whom the National Vessel Documentation Center will correspond regarding applications and
renewals. This must be the name a sole owner or an individual designee of multiple owners. In case of a Corporation, the actual legal name of the entity
itself must be designated as the managing owner. A managing owner is
listed on an application for documentation.
Why must an owner provide a social security number for vessel documentation? - Unless the applicant is 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.
Operational Requirements
Owning a USCG-documented vessel carries important
operational responsibilities, and vessel owners must be familiar with
the applicable rules and regulations before putting the vessel to use.
Can I operate my vessel while awaiting a certificate of documentation? -
A vessel may not engage in commercial activities without a valid and
properly endorsed certificate of documentation on board. As for
recreational usage, this will be a matter of discretion on behalf of the respective enforcement agency. Some jurisdictions have
been known to accept evidence that an application has been filed as proof of ownership. In any event it would be advisable to check with the
appropriate authorities if you intend to operate without being in full compliance of all regulatory statutes.
Also beware of so called "travelling papers" issued by vessel
documentation companies. These may offer proof of filings, but are not
government sanctioned.
Is a documented vessel exempt from state registration? -
Individual states may at their option issue periodic registration
certificates for USCG documented vessels. This is allowed even though
federal law prohibits the issuance of state titles under such
circumstances. The Coast Guard does not view state level registrations
in themselves as bona fide titles but rather evidence of operational
privileges.
When must I renew a certificate of documentation? - Certificates
of documentation are renewed on a periodic basis according to the
issuance date. Renewals for recreational vessels are available from one
to five years at the owner's option. Commercial vessels are restricted to a
one year basis. The NVDC notifies owners when a certificate is about to
expire but it's stull incumbent on the owner if not received. Penalties
or re-documentation fees may apply if not renewed in a timely manner.
What are the penalties for vessel documentation violations? - The
maximum penalty for each day of continuous violations of vessel
documentation regulations can amount to thousands of dollars. This is
especially applicable for commercial operations. Forfeiture and seizure
of the vessel may also apply under some circumstances . In addition, a false
representation or statement to a government official can result in
incarceration.
What does an endorsement mean? - In applying for documentation an
applicant must declare the intended usages under which it will operate.
The certificate of documentation must then contain notations called
endorsements showing the vessel qualified for such purposes. This may
include recreational, fisheries, coastwise, registry, a special
endorsement or combination thereof.
Ownership Requirements
USCG documentation is a national form of vessel
registration, and as such, it includes certain restrictions on who is
eligible to own a documented vessel.
What are citizenship requirements for
owning a documented vessel?
- To be eligible for U.S. vessel documentation, all individual owners must be U.S. citizens. If the vessel is owned by a company or other legal entity, it must be at least 100% U.S. citizen owned, and for most endorsements, it must also be controlled and managed by U.S. citizens.
What constitutes U.S. Citizenship: This can include someone born in the United States, who became a citizen through the naturalization process or was born outside this country to American parents. U.S. territorial citizens are also considered as U.S. citizens with the same rights. Persons of dual citizenship in a foreign country will qualify provided they also meet the requirements of a U.S. citizen.
Why is citizenship such a big deal when documenting a vessel? - Citizenship is a big deal when documenting a vessel because only U.S. citizens are allowed to own a documented vessel. The U.S. Coast Guard needs to make sure the vessel is legally part of the U.S. fleet, especially if it will be used for things like international travel or commercial work. It's also about national security and protecting U.S. interests on the water.
How do I establish citizenship when documenting vessel? - When
applying for documentation, the underlying form will contain
sections for declaring various percentages of ownership for both individuals and
entities. Should this raise any questions, the Coast Guard may require the
submission of a formal declaration of citizenship.
Can a green card holder own a documented vessel? - A green card
holder can not apply for vessel documentation unless able to certify that a
naturalization has already been accomplished. Until then, it will be
necessary to register the vessel on the state level or within the country of
actual citizenship.
How do I change the legal name of a documented vessel owner? - 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 name. In order to do so, you will need to provide copies of court documents or other legal evidence supporting such action.
What are documentation requirements for legal entities? -
Legal entities such as corporations, LLCs, partnerships and the likes must
be duly organized and established under the jurisdiction where formed. It
must also meet specific citizenship requirements in accordance with the type
of trade endorsements under which it will operate.
What are documentation requirements for a trust? - A trust
is viewed by the Coast Guard as an arrangement where one or more a trustee holds title to the vessel for the benefit of other
parties known as beneficiaries. Accordingly, ownership must be listed in the name of the trustee
who must be a U.S. citizen along with each beneficiary that has an
enforceable interest in a trust arrangement
Vessel Requirements
In order to qualify for USCG documentation, a vessel must
meet specific criteria established under federal regulations. These
standards typically include requirements related to the vessel’s size
and intended use.
Can documented vessels share the same name? - Vessel names are not exclusive for documentation purposes and any number of vessels can share identical names. Coast Guard records
can be easily searched by vessel name to determine the number of duplications and their corresponding hailing ports.
Any name will work unless similar to a safety signal, profane or
discriminatory.
How do I determine the tonnage for vessel documentation? - Vessel
tonnage for documented vessels is determined by hull volume as opposed to weight displacement. Recreational vessels
under 79' are measured via the simplified method of using a basic formula
based length, depth and width. Larger vessels and those for certain
commercial endorsements must be formally measured by a Coast Guard
approved measurement service company.
Is my vessel large enough for documentation? - A vessel must typically measure
out to at least 5 net tons in volume to qualify for documentation. This
is determined by a formula based on the vessel's length, width and
depth. This means it must typically be least 25 feet in length to qualify for documentation.
Must a vessel be U.S. built to qualify for documentation? - The
place or country in which constructed is not an issue for recreational vessels. However, evidence that it was built in the United States is
required for those which are to be used for certain trade
endorsements. Build evidence usually comes in the form of a Builder's
Certification which is issued by the manufacturer or a letter containing
the equivalent information.
What are the marking requirements for vessel documentation? - Every documented vessel must be marked with its official number, a designated name and a hailing port. The size and location of which
are determined by Coast Guard regulations. The markings must be properly affixed prior to operating the vessel.
How do I choose the hailing port on a Coast Guard documented vessel? - The vessel hailing port is no longer related to where the owner resides or the location at which the vessel is moored. You can
choose any U.S. city, state or. territory provided it has a valid postal
zip code.
Title Requirements
Applicants seeking to document a vessel must provide clear
and verifiable evidence of ownership. The U.S. Coast Guard enforces
strict criteria for what constitutes acceptable documentation, and all
submissions must adhere to regulatory standards.
What kind of ownership evidence is required for vessel documentation? -
The Coast Guard will only accept certain items that will serve for proof
of ownership when documenting a vessel. These may include a builders
certificate, manufacturers statement of origin, state title or
registration, foreign title or registration or evidence of prior
documentation. Court awards and statutory actions may also suffice if
properly structured. Ownership can be chained forward from such items
through a recordable instrument of transfer such as a bill of sale.
Can I assign ownership on a USCG certificate of documentation? - A valid certificate of documentation will serve as evidence of transfer
if ownership is properly assigned on the reverse side by the documented
owners. This can be further assigned with an instrument of transfer such
as a bill of sale.
Can a vessel become documented from a state registration or title? -
The Coast Guard will accept a copy of the current state registration or
a copy of the state title for such purpose. However it will not accept
an assignment of such certificates. In these cases it will be necessary
to produce a recordable instrument of transfer such as a bill of sale.
How do I remove a divorced spouse from vessel documentation? - In
most cases, the Coast Guard will honor a court sanctioned divorce decree which awards
a specifically identified vessel as part of the settlement. The awarding spouse would otherwise have to execute a transfer of interest for half interest in the vessel. If the documentation is subject
to a preferred mortgage, the transaction will also become subject to the lender's written consent.
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 easily obtained
from the National Vessel Documentation Center.
Should I notify the Coast Guard upon transferring the vessel's 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 part of this process. The underlying
abstract of title will then show the new owner's name, even though the documentation may not have been reinstated.
Recordable Instruments
Recordable instruments are documents that meet U.S. Coast
Guard requirements for recording transactions on a vessel’s abstract of
title. These typically involve changes in ownership or the registration
of liens and encumbrances. Examples include bills of sale, deeds of
gift, transfers of interest, preferred vessel mortgages, mortgage
supplements, and lien claims.
How do I file an instrument of transfer? - Instruments of
transfer include such items as bills of sale, deeds of gift, transfers
of interest and the like. The Coast Guard will accept these in any
format provided they contain the appropriate citations and are duly
notarized.
What is a preferred vessel or ship's mortgage? - A preferred vessel 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.
How do I amend the terms of a preferred vessel mortgage? - If the terms of an active preferred vessel mortgage change, you should record an
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 original filing date for the underlying mortgage remains unchanged.
Can a mortgagee block changes in the vessel documentation? - The
mortgagee must sign a written consent before any changes whatsoever can be made in the documentation status. This includes vessel name
or hailing port changes, changes in endorsements, and transfers of ownership. Subsequent mortgages can be filed without the bank's consent, but this
will likely create a default under the terms of prior loan contract.
How do I remove a preferred vessel mortgage? - A mortgagee 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. If the mortgagee has failed to file such
release and is no longer available, the only remaining option would be
to obtain a court order to have recording vacated.
What is a vessel documentation 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 vessel which is currently documented or in the process of becoming documented. The recording does not validate a claim and judicial
action must be taken as a method of foreclosure. It's primary function is to notify the owner and any known mortgagees or other claimants.
How do I file a vessel documentation claim of lien? - In order to
record a maritime lien it will be necessary to submit a "Notice of Claim of Lien" form to the National Vessel
Documentation Center. It must show information about the claimant, nature of the claim, date on which it arose, and the amount. The claim must
also be accompanied by a declaration that a copy of the notice was sent to all owners and any known mortgagees or other
claimants. Such recordings do not require the debtor's signature.
How can I remove a USCG vessel documentation 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
filing, 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.
Conclusion
This article is based on information gathered from various sources and may contain errors, omissions or inaccuracies. You should contact the appropriate agency or seek legal consultation before taking any actions based upon this material. Please let us know if you have any further questions or comments.
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