Vessel Documentation Overview
What you should know about U.S. Coast Guard vessel documentation.
Vessel documentation can be defined as a national system for registering recreational and commercial boats that meet certain qualifications. It is administered by the National Vessel Documentation Center which is a division of the U.S. Coast Guard. The program facilitates maritime commerce, provides evidence of nationality, authenticates ownership, enhances marine financing and bolsters national security.
Purpose of Vessel Documentation
Vessel documentation was initially enacted by Congress in
order to provide evidence of nationality for U.S. flagged vessels. It is
now a determining factor in the regulation of maritime commerce,
commercial fishing activities, vessel construction standards and
national security. Documentation also facilitates the enhancement of
marine financing and provides a national database of registered vessels.
Vessel documentation has accordingly become a matter of preference when it comes
to the registration and titling of recreational boats over 25 feet in length.
Recreational Boats - Although the documentation of
recreational boats is optional, the majority of those federally registered fall
into this category. There are approximately 234,914 documented vessels
with valid certificates and 181,475 of these are endorsed for
recreational usage. There are many advantages for documenting a
recreational boat including the availability mortgage loan financing.
Commercial Boats -
Documentation is mandatory for vessels that intend to engage in any type
of commercial activities within U.S. waters. This includes commercial
fishing, the transporting of goods, passenger accommodations and trade
between domestic and territorial ports. Commercial vessels can also be
used for recreational purposes when not engaged in their
respective enterprises.
Evidence of
Nationality - It's very important for boats traveling abroad to
become documented under the United States flag. This makes entry into
foreign ports much easier and affords protections in international
waters. USCG documentation brings vessels under the jurisdiction of
federal regulations which may be advantageous over those of foreign
countries.
Ownership Authentication - A certificate of documentation
offers the most accepted evidence of ownership. Given the stringent
requirements for vessel documentation, it is considered the most
authentic form of titling both domestically and abroad. It is especially
true for those which have remained in documentation since the beginning
with a complete chain of
recorded ownership.
Numbering Avoidance - Although some
states issue registrations on documented vessels, others may exempt them
from such requirements altogether. In any event, documented vessels are
not required to display the registration numbers which is viewed as
prestigious by most owners.
Mortgage
Financing - Marine lenders will typically require documentation for
recreational vessels in order to obtain a preferred vessel mortgage.
This affords priority over any other secured collateral arrangements
including those recorded on the state level.
National Security - The
NVDC maintains a database of registered boats which provides a list of
those available in the unlikely event of wartime or a national
emergency. It also provides enforcement officials with immediate access
to detailed information about a documented boat, its ownership and
background.
Emergency
Responses
- Inclusion in the vessel documentation database provides first hand
details about the subject vessel and its ownership to emergency
responders. This could be crucial in situations where response time is
of the essence.
Abstract of Title - Vessel documentation includes the
establishment of an abstract of title similar to that of real property.
This includes recordings about ownership changes, mortgages, lien claims
and other supplemental information. Such data is highly valued by
lenders, prospective buyers, insurance companies and other parties of interest.
Administrative Agency
The National Vessel Documentation Center (NVDC) is located in a rural area
near Martinsburg, West Virginia. It represents a consolidation of 14
regional offices that were merged into a centralized
facility on August 1, 1996. It is staffed by a number of highly trained
documentation officers that are very attuned to the needs of applicants,
established owners and the boating public in general.
Mission -
The NVDC is charged with implementing all aspects of vessel documentation.
This is accomplished through the enforcement of prescribed federal regulations and by
maintaining a register of documented vessels. In addition to the handling of
applications, the NVDC processes transactional recordings related to
ownership and encumbrances. These encompass transfers of ownership,
preferred mortgages, lien claims and various ancillary instruments. The NVDC also
provides support for the general public with respect to records access and
informational resources.
Services - Although open for public
visitation, most transactions with the NVDC are conducted online, by
telephone, email or regular mail. Facsimile accommodations are no longer
available. The NVDC also has a very comprehensive website with
instructions, forms, filing information and requirements for documentation.
This includes contact information and a portal where applicants can review
the status of their filings.
Vessel Requirements
Almost any type of watercraft capable of flotation may qualify for
documentation including power boats, sailing craft, ships, barges,
houseboats, and certain inflatables. However there are certain exceptions
depending on the vessel's size, configuration and the place where it was
constructed.
Size
Requirements - In order to qualify for documentation a vessel must
measure at least 5 net tons in terms of cargo volume. This is equal to
approximately 25 feet in length depending on the vessel's overall width,
depth, and hull configuration. Net and gross tonnage are
determined through an admeasurement formulation.
Build Requirements - There is no restriction on where a vessel was constructed for recreational
vessels. However, boats destined for commercial endorsements must have been built
within the United States.
Marking Requirements - Documented
vessels are assigned a seven digit official number which must be permanently
affixed to an interior part of the hull. An owner designated name and
hailing port must also be displayed on the vessel's exterior. These are not
exclusive and more than one boat may have the same name and hailing port.
The only exceptions are profane or emergency call names. Federal
regulations prescribe the size and placement of such markings.
Owner Requirements
Citizenship Requirements - As a general rule, documented vessels must be wholly owned by U.S. citizens. This includes individuals who were
native born, naturalized, or derived from U.S. citizens while living or travelling abroad.
Individuals - Multiple owners may obtain documentation under various
types tenancies provided they conform with state regulations where
domiciled.
Legal Entities - Legal entities such as corporations, limited
liability companies, and partnerships are also allowed to own documented
vessels if properly formed in accordance with regulations in which domiciled.
Trustees - Trust arrangements and estates may be referenced for documentation purposes if duly sanctioned by state level
regulations. Under these circumstances however, ownership is actually held by the respective
trustee, administrator or legal
representative.
Residency
Requirements - Vessels may become documented even if not located within
U.S. waters, provided the owners have met the necessary citizenship
requirements.
Applications and Instruments
Applications - Vessel documentation begins
with an initial application which is very straight forward and the fees
are minimal. This may be subsequently followed by applications for
re-documentation pursuant
ownership transfers, changes in vessel status, lost certificates,
various technical reasons and perhaps even a request for removal from
documentation.
Recordable Instruments -
There are a number of legal documents and instruments that may be filed
conjunction with certain applications or as stand alone recordings.
These may include transfers of interest, bills of sale, deeds of gift,
notice of lien claims, preferred mortgages and supplemental items such
as assignments, amendments, subordinations and releases thereof. Such
items are indexed on the respective vessel's abstract of title which is
maintained in perpetuity even beyond a removal or deletion from documentation.
Conclusion
Documenting a vessel has been traditionally viewed as something complicated and mysterious that should only be attempted by professional agents. However, that perception has changed over the past several years given the Coast Guard's newly formed vessel documentation center's extensive online services. There is no longer a need to spend hundreds of dollars for third party representation where the cost of doing it yourself is only a fraction of that amount. It's simply a matter of doing a little homework based a wealth of resources now openly available from our website in conjunction with those provided directly from the National Vessel Documentation Center.
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