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Federal Documentation Guide
Documentation is a national form of vessel registration and provides conclusive evidence of nationality for international purposes, provides for unhindered commerce between the states, and admits boats to certain restricted trades such as coastwise trade and the fisheries. Since 1920, boat financing has been enhanced through the availability of preferred mortgages on documented boats. The basic requirements for documentation are to demonstrate ownership of the boat, US citizenship, and eligibility for the type of documentation sought.
We have provided the information below to help you understand the documentation process and determine what kind of documentation you need. MariSafe can handle all or part of the documentation process for you. Because it is a cumbersome process that involves federal agencies, forms and myriad papers and certifications, we highly recommend that you take advantage of MariSafe’s Document My Boat service. The time you save and the inconvenience you avoid by letting us handle it will be worth every penny of the fair price we charge for documentation service.
Types of Boats Documented
To be documented, a boat must measure at least five net tons (a measure of volume, not weight) which includes most boats 25’ and over. With the exception of commercial vessels, the boat must be wholly owned by a citizen or entity of the US. Boats of five net tons or more used in fishing activities, coastwise trade such as transportation of merchandise or passengers, towboats and dredges must be documented.
Endorsements
A Certificate of Documentation may be endorsed for specific boating activities, such as commercial fishing, coastwise trade including transporting passengers for hire and various other commercial activities, recreational use, or registry to establish that the boat is owned by a US citizen. The boat owner may be required to demonstrate that both owner and boat are qualified for the activity for which a particular endorsement is sought. Any documented boat may be used for recreational purposes regardless of its endorsement but a boat documented with a recreational endorsement may not be used for any other purpose.
For corporate owners seeking a coastwise endorsement, at least 75% of the corporation’s stock must be vested in US citizens for a coastwise endorsement. For a corporate fisheries endorsement, more than 50% of the voting stock must be vested in US citizens.
Establishing Boat Ownership
If the boat is new and has never been documented, ownership may be established by submission of a Builder's Certification naming the applicant for documentation as the person for whom the boat was built or to whom it was first transferred. Also acceptable is a transfer on a Manufacturer's Certificate of Origin, a copy of the state registration or title, or foreign registration showing that the applicant owns the boat.
In the case of a previously owned boat, the applicant must present a US Coast Guard Bill of Sale or other evidence showing transfer of the boat from the person who last documented, titled or registered it, or to whom the boat was transferred on a Builder's Certification or Manufacturer's Certificate of Origin.
Establishing US Citizenship
In addition to private US citizens, corporations, partnerships and other entities capable of holding legal title may be deemed citizens for documentation purposes. Corporations must be registered in a state of the US; the chief executive officer and chairman of the board of directors must be US citizens, and no more than a minority of the number of directors necessary to constitute a quorum may be noncitizens. In addition, at least 75% of the stock must be vested in US citizens for a coastwise endorsement, and more than 50% of the voting stock must be vested in US citizens for a fisheries endorsement.
Name & Hailing Port
Documented boats do not display official numbers on the outside of the hull; they are identified instead by name and hailing port. The application for documentation must include the boat’s name composed of no more than 33 letters of the Latin alphabet or Arabic or Roman numerals. The boat’s name and hailport must be clearly displayed on the hull, usually on the transom, and a marking certificate must be signed attesting that the name and hailport adhere to size, color and visibility regulations. Once established, a boat’s name and hailport may not be changed without application, fees and the consent of the US Coast Guard’s Documentation Center.
A documented boat must also have its official documentation number and net tonnage permanently affixed to a clearly visible interior structural part of the boat. For information on how to properly affix your documentation number to your boat’s interior, see Registration & Documentation FAQs.
Preferred Mortgage
A preferred mortgage is a legal maritime lien against the boat’s ownership. Your lender may require you to document your boat in order to acquire a preferred mortgage, which grants the lender a first priority contractual lien position against your boat in the event of default. In addition, the Coast Guard is prohibited from making certain changes in documentation, including change of ownership, name and hailing port, without consent of the mortgagee.
Abstract of Title
An Abstract of Title shows the registered owner of the boat, as well as all Bills of Sale, mortgages and notices of claim of lien on the boat that have been filed and recorded by the US Coast Guard. It is considered the best evidence of lien status.
Annual Renewal
A Certificate of Documentation (COD) is valid for one year from the date of issue, providing there are no changes other than a change of owner’s address. The certificate must be renewed annually and it is the owner’s responsibility to ensure that the document does not expire. The US Coast Guard sends a Notice of Renewal to the managing owner of the boat approximately 45 days prior to expiration. There is no fee for the annual renewal, but a great deal of paperwork and fees should the certificate be allowed to expire.
Sale of a Documented Boat
A certificate is nontransferable and should not be given to a new owner. When you sell your boat, you must return the original Certificate of Documentation to the National Vessel Documentation Center along with a brief note that you sold the boat. When the sale is finalized, you should complete the proper Bill of Sale for the new owner to use if he wishes to document the boat. The new owner must send one signed original and one copy of the Bill of Sale, along with an Application for Documentation and fees to the National Vessel Documentation Center. The buyer may use the Bill of Sale as evidence of the transfer of ownership to obtain state registration and/or title if he chooses not to document the boat.
If you have an outstanding mortgage of record against your boat, make sure the mortgagee (the lender) completes a Satisfaction of Mortgage form and mails an original and one copy to the National Vessel Documentation Center as your boat cannot be removed from documentation with an outstanding mortgage.
Documentation Fees
Documentation fees can vary widely, depending upon the type of documentation you want, the lien status of the boat, the number of parties involved and other factors. Fees can range from under $200 for simple redocumentation to more than $1,000 for more complex transactions involving multiple boats or requiring professional closing services. Maritime liens and admiralty law can make documentation a complex and onerous process for anyone unfamiliar with it. With some time and plenty of patience, you can document your boat yourself but our advice is to let us handle it through MariSafe’s Document My Boat service. Our experts’ in-depth knowledge and experience with the documentation procedure save you time and prevent delays in the process.
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