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National
United States Regulations
46 CFR PART 68—DOCUMENTATION OF VESSELS PURSUANT TO EXTRAORDINARY LEGISLATIVE GRANTS


Title 46: Shipping




PART 68—DOCUMENTATION OF VESSELS PURSUANT TO EXTRAORDINARY LEGISLATIVE GRANTS



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Authority: 46 U.S.C. 2103; Pub. L. 107–296, 116 Stat. 2135; Department of Homeland Security Delegation No. 0170.1. Subpart 68.01 also issued under 46 U.S.C. App. 876; subpart 68.05 also issued under 46 U.S.C. 12106(d).

Source: CGD 80–107, 47 FR 27511, June 24, 1982, unless otherwise noted.

Subpart 68.01—Regulations Implementing Provisions for 46 U.S.C. App. 883–1
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§ 68.01-1 Definitions for the purposes of this subpart.
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Act means the Act of September 2, 1958 (46 U.S.C. App. 883–1).

883–1 citizen or 883–1 corporation means a corporation which qualifies for the special citizenship status created by the Act of September 2, 1958 (46 U.S.C. App. 883–1).

Parent corporation means one incorporated under the laws of the United States, or any state, territory, or district of the United States, which controls (directly or indirectly) at least 50 percent of the voting stock of another corporation.

Subsidiary corporation means one incorporated under the laws of the United States, or any state, territory, or district of the United States, which has not less than 50 percent of its voting stock controlled (directly or indirectly) by another corporation.

[CGD 80–107, 47 FR 27511, June 24, 1982, as amended by CGD 95–028, 62 FR 51203, Sept. 30, 1997]

§ 68.01-3 Requirements for citizenship under 46 U.S.C. App. 883–1.
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A corporation seeking to establish its citizenship under the Act of September 2, 1958 (46 U.S.C. App. 883–1) must meet the following criteria as specified in the Act:

(a) It must be incorporated under the laws of the United States, or any state, territory, district, or possession of the United States;

(b) A majority of the officers and directors of the corporation must be citizens of the United States;

(c) Not less than 90 percent of the employees of the corporation must be residents of the United States;

(d) Such corporation must be engaged primarily in a manufacturing or mineral industry in the United States or any territory, district, or possession of the United States;

(e) The aggregate book value of the vessels owned by the corporation must not exceed 10 percent of the aggregate book value of the assets of the corporation; and

(f) The corporation must purchase or produce in the United States, its territories or possessions, not less than 75 percent of the raw materials used or sold in its operations.

Note: A corporation which qualifies as an 883–1 citizen by meeting the criteria in paragraph (a) of this section is not thereby precluded from qualifying as a citizen under any definition in part 67 upon compliance with all applicable requirements.

[CGD 80–107, 47 FR 27494, June 24, 1982, as amended at 47 FR 35488, Aug. 16, 1982; CGD 95–028, 62 FR 51203, Sept. 30, 1997]

§ 68.01-5 Qualification as an 883–1 corporation.
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(a) To be formally qualified as an 883–1 corporation for all purposes under the Act, a corporation which meets the requirements of §68.01–3 must file with the Director, National Vessel Documentation Center a certificate under oath as described in appendix A.

(b) Upon the filing of the certificate required under paragraph (a) of this section, the Director, National Vessel Documentation Center will furnish the corporation a Certificate of Compliance which is valid for a period of 3 years from the date of its issuance, unless there is a change in corporate status requiring a report under §68.01–9(a) of this subpart. On or before the date of expiration of the Certificate of Compliance, a new certificate under oath as described in appendix A must be filed with the Director, National Vessel Documentation Center.

(Approved by the Office of Management and Budget under control number 2115–0110)
[GCD 89–007; GCD 89–007a, 58 FR 60266, Nov. 15, 1993, 58 FR 65131, Dec. 13, 1993, as amended by CGD 95–014, 60 FR 31605, June 15, 1995; USCG–1999–6216, 64 FR 53225, Oct. 1, 1999; USCG–2002–13058, 67 FR 61279, Sept. 30, 2002]

§ 68.01-7 Qualification as a parent or subsidiary.
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(a) To be formally qualified as a parent corporation, as defined in §68.01–1, a corporation must file with the Director, National Vessel Documentation Center a certificate under oath as described in appendix B.

(b) To be formally qualified as subsidiary corporation as defined in §68.01–1, a corporation must file with the Director, National Vessel Documentation Center a certificate under oath as described in appendix B.

(c) Upon the filing of the certificate required under paragraph (a) or (b) of this section, the Director, National Vessel Documentation Center will furnish the corporation a certificate of parent or subsidiary status which is valid for a period of 3 years from the date of its issuance unless there is a change in corporate status requiring a report under §68.01–9(a) of this subpart. On or before the date of expiration of the certificate of parent or subsidiary status, a new certificate under oath as described in appendix B must be filed with the Director, National Vessel Documentation Center.

[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 31605, June 15, 1995; USCG–1999–6216, 64 FR 53225, Oct. 1, 1999; USCG–2002–13058, 67 FR 61279, Sept. 30, 2002]

§ 68.01-9 Cessation of qualification.
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(a) If after filing the certificate required by §68.01–5 of this subpart, a change occurs whereby an 883–1 corporation no longer meets the criteria in §68.01–3(a), that corporation's qualification for the privileges enumerated in §§68.01–11 and 68.01–13 is terminated effective as of the date and time of the change. The corporation must report the change in writing to the Director, National Vessel Documentation Center.

(b) If, after filing the certificate required by §68.01–7 of this subpart, a change occurs whereby the corporation is no longer entitled to be deemed a parent or subsidiary corporation, that corporation's qualification for the privileges in §§68.01–11 and 13 is terminated effective as of the date and time of the change. The corporation must report such change in writing to the Director, National Vessel Documentation Center.

[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 31605, June 15, 1995; USCG–1999–6216, 64 FR 53225, Oct. 1, 1999]

§ 68.01-11 Privileges conferred—documentation of vessel.
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The special citizenship status created by the Act entitles the 883–1 corporation to document certain vessels for certain limited purposes:

(a) An 883–1 corporation may document under the Act only vessels which are qualified for employment in the coastwise trade and which are either non-self propelled or, if self-propelled, are of less than 500 gross tons.

(b) A vessel owned by an 883–1 corporation and meeting the criteria in paragraph (a) of this section may be documented only for use in the coastwise trade subject to the restrictions in §68.01–15.

(c) Section 68.01–17 contains details concerning the documentation of vessels by an 883–1 corporation.

§ 68.01-13 Privileges conferred—operation of vessels.
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(a) The special citizenship status created by the Act entitles the 883–1 corporation to operate, subject to the restrictions in §68.01–15, vessels which are qualified to engage in the coastwise trade and are exempt from documentation. (See §67.9 for classes of exempt vessels.)

(b) Vessels, documented or exempt from documentation, employed subject to the Act may carry passengers and merchandise of the 883–1 corporation owning such vessels only between points in the United States, including territories, districts, and possessions thereof embraced in the coastwise laws.

(c) The special citizenship status created by the Act entitles an 883–1 corporation owning vessels as described in paragraphs (a) and (b) of this section to transport merchandise or passengers for hire in the coastwise trade as a service for a duly qualified parent or subsidiary corporation as defined in §68.01–1.

(d) The special citizenship status created by the Act entitles an 883–1 corporation owning vessels as described in paragraphs (a) and (b) of this section to demise or bareboat charter such vessels to common or contract carriers subject to the restrictions in §68.01–15(c).

[CGD 80–107, 47 FR 27511, June 24, 1982, as amended by USCG–2002–13058, 67 FR 61279, Sept. 30, 2002]

§ 68.01-15 Restrictions.
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(a) Vessels employed subject to the Act are entitled to operation only in the coastwise trade and only to the extent described in paragraphs (b) and/or (c) of this section.

(b) A vessel owned by an 883–1 corporation may engage in coastwise transportation for hire as a service to a parent or subsidiary corporation as defined in §68.01–1. Such transportation for hire must be between points of the United States, including territories, districts, and possessions thereof embraced in the coastwise laws.

(c) A vessel owned by an 883–1 corporation may be operated under demise or bareboat charter to a common or a contract carrier subject to 49 U.S.C. Chapter 101 if the corporation is a U.S. citizen as defined in 46 U.S.C. App. 802.

(1) Such common or contract carrier may not be connected either directly or indirectly by ownership or control with the 883–1 corporation.

(2) The demise or bareboat charter must be at prevailing rates.

(3) The vessels under a demise or bareboat charter may not be used in non-contiguous trade.

[CGD 80–107, 47 FR 27511, June 24, 1982, as amended by CGD 95–028, 62 FR 51203, Sept. 30, 1997]

§ 68.01-17 Application by an 883–1 corporation to document a vessel.
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(a) An application by an 883–1 corporation to document a vessel must comply with the applicable requirements in subparts A, D, E, F, G, H, I, K, and L of part 67 of this chapter.

(b) An application by an 883–1 corporation to document a vessel must include a copy of the Certificate of Compliance issued under §68.01–5.

[CGD 95–014, 60 FR 31606, June 15, 1995]

Appendix A to Subpart 68.01 of Part 68—Oath for Qualification of Corporation as a Citizen of the United States Under the Act of September 2, 1958 (46 U.S.C. 883–1)
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Department of Homeland Security, U.S. Coast Guard

Oath for Qualification of Corporation as a Citizen of the United States Under the Act of September 2, 1958 (46 U.S.C. 883–1)

Corporation:

Name____________________
Address 1 ____________________

1 Show principal place of business of corporation.

State where incorporated____________________

Affiant:

Name____________________
Address____________________
Company____________________
Title or capacity____________________

I, the affiant named above, swear that I am legally authorized to make this oath on behalf of the corporation, that a majority of the officers and directors of the above-named corporation are citizens of the United States, as shown by the attached listing incorporated in and made a part of this oath which truly and correctly names all such officers and directors, giving the home address and citizenship of each; that not less than 90 percent of the employees of the corporation are residents of the United States; that the corporation is engaged primarily in a manufacturing or mineral industry in the United States or in a territory, district or possession thereof; that the aggregate book value of the vessels owned by the corporation does not exceed 10 percent of the aggregate book value of the assets of the corporation; and that the corporation purchases or produces in the United States, its territories or possessions not less than 75 percent of the raw materials used or sold in its operation. 2

2 Attach the required list of the names of all officers and directors of the corporation, giving the home address and citizenship of each.

The above named corporation fails to qualify as a citizen within the meaning of §67.39(c) by reason of: 3

3 Check appropriate line or lines.

___Non-citizen President

___Non-citizen Chairman of Board

___Failure to meet quorum requirements

___Failure to meet stock ownership requirements

Signature____________________

Subscribed and sworn to before me on the day and year shown

____________________
____________________

(Notary Public)

Date____________________

[CGD 80–107, 47 FR 27511, June 24, 1982, as amended by USCG–2002–13058, 67 FR 61279, Sept. 30, 2002; USCG–2003–14505, 68 FR 9535, Feb. 28, 2003]

Appendix B to Subpart 68.01 of Part 68—Oath of Parent or Subsidiary Corporation Act of September 2, 1958 (46 U.S.C. 883–1)
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Department of Homeland Security, U.S. Coast Guard

Oath of Parent or Subsidiary Corporation, Act of September 2, 1958 (46 U.S.C. 883–1)

Corporation:

Name____________________
Address____________________
State of incorporation____________________

Status (Parent) 1 ____ (Subsidiary) 2 ____

1 A “parent corporation” for the purposes of this oath is one incorporated under the laws of the United States, or any State, territory, or district of the United States, which controls (directly or indirectly) at least 50 percent of the voting stock of another corporation. Strike out the inapplicable term.

2 A “subsidiary corporation” for the purposes of this oath is one incorporated under the laws of the United States, or any State, territory, or district of the United States, which has not less than 50 percent of its voting stock controlled (directly or indirectly) by another corporation. Strike out the inapplicable term.

Name of associated corporation____________________
Address____________________
State where incorporated____________________

Affiant:

Name____________________
Address____________________
Company____________________
Title or capacity____________________

I, the affiant named above, swear that the corporation first named herein is the (parent) 1 (subsidiary) 2 of the associated corporation named, that I am the duly authorized officer or agent of the corporation first named, and that the associated corporation has previously established that it is a citizen within the meaning of the Act of September 2, 1958 (46 U.S.C. 883–1).

Signature____________________

Subscribed and sworn to before me on the day and year shown

____________________

(Notary Public)

[CGD 80–107,47 FR 27511, June 24, 1982, as amended by USCG–2003–14505, 68 FR 9535, Feb. 28, 2003]

Subpart 68.03—[Reserved for Regulation, as Necessary, of Vessels Documented Under the Act of August 9, 1954]
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Subpart 68.05—Documentation of Certain Vessels for Oil Spill Cleanup
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Source: CGD 90–055, 57 FR 7642, Mar. 3, 1992, unless otherwise noted.

§ 68.05-1 Purpose and scope.
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This Subpart contains citizen ownership requirements and procedures to allow documentation of vessels which do not meet the requirements of part 67 of this chapter. The requirements are for the limited purposes of training for, implementing, and supporting oil spill cleanup operations.

§ 68.05-3 Definitions for purposes of this subpart.
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Certificate of Documentation means form CG–1270.

Citizen means a citizen as described in part 67 of this chapter.

Exclusive Economic Zone or EEZ means the exclusive economic zone established by Presidential Proclamation Numbered 5030, dated March 10, 1983, including the ocean waters of the areas referred to as “eastern special areas” in Article 3(1) of the Agreement between the United States of America and the Union of Soviet Socialist Republics on the Maritime Boundary, signed June 1, 1990.

Not-for-profit oil spill response cooperative means a corporation, partnership, association, trust, joint venture, or other entity established under the laws of the United States, or of a State, with a not-for-profit status and for the limited purposes of training for, carrying out, and supporting oil spill cleanup operations or related research activities.

§ 68.05-5 Citizenship requirements for limited coastwise endorsement.
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(a) Notwithstanding the citizenship requirements set out in part 67 of this chapter, a Certificate of Documentation with a coastwise endorsement for the limited purposes provided in §68.05–9 may be issued to a vessel owned by—

(1) A not-for-profit oil spill response cooperative if the vessel meets the requirements of paragraph (b) of this section; or

(2) A member or members of a not-for-profit oil spill response cooperative if the vessel meets the requirements of paragraphs (b) and (c) of this section.

(b) The vessel must be at least 50 percent owned by one or more of the following entities:

(1) An individual who is a native-born, naturalized or derivative citizen of the United States or otherwise qualifies as a United States citizen.

(2) A corporation incorporated under the laws of the United States or of a State where—

(i) The president and, if the president is not the chief executive officer, the chief executive officer, by whatever title, is a citizen;

(ii) The chairman of the board of directors is a citizen; and

(iii) No more of the directors are non-citizens than a minority of the number necessary to constitute a quorum.

(3) A partnership where all the general partners are citizens and at least 50 percent of the equity interest is owned by citizens.

(4) An association or joint venture where all the members are citizens.

(5) A trust where all the trustees and all the beneficiaries with an enforceable interest in the trust are citizens.

(c) The vessel must be owned by a member or members of a not-for-profit oil spill response cooperative who dedicate the vessel to the use of a not-for-profit oil spill response cooperative.

(d) A vessel which meets the criteria of this section is considered to be owned exclusively by citizens of the United States for the purposes of subsequent transfer and documentation under part 67 of this chapter.

§ 68.05-7 Vessel eligibility requirements for limited coastwise endorsement.
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(a) A vessel must comply with all the requirements of part 67 of this chapter, other than citizenship requirements, in order to be eligible for documentation under this subpart.

(b) Notwithstanding 46 U.S.C. App. 883, a vessel remains eligible for documentation under this subpart even if the vessel was formerly owned by a not-for-profit oil spill response cooperative or by one or more members of a not-for-profit oil spill response cooperative and the vessel meets the criteria of §68.05–5.

§ 68.05-9 Privileges of a limited coastwise endorsement.
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(a) A vessel which is documented and issued a limited coastwise endorsement under this subpart may operate on the navigable waters of the United States or in the EEZ in coastwise trade only for the following purposes:

(1) To recover oil discharged into the water.

(2) To transport oil discharged into the water.

(3) To transport and deploy equipment, supplies, and personnel for recovering and transporting oil discharged into the water.

(4) To conduct training exercises to prepare for performing the functions in paragraphs (a)(1) through (a)(3) of this section.

(b) This limited coastwise endorsement also entitles the vessel to any other employment for which a registry, fishery, or Great Lakes license is not required.

(c) A vessel which is documented and issued a limited coastwise endorsement under this subpart may qualify to operate for other purposes by meeting the applicable requirements of part 67 of this chapter.

§ 68.05-11 Application to document a vessel under this subpart.
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(a) To qualify to document a vessel or to accept the dedication of a vessel by a member or members under this subpart, a not-for-profit oil spill response cooperative shall file with the Director, National Vessel Documentation Center the certificate under oath as set forth in Appendix A to this subpart.

(b) Upon the filing of the certificate under paragraph (a) of this section, the Director, National Vessel Documentation Center will furnish the not-for-profit oil spill response cooperative with a letter of qualification. The letter of qualification is valid for a period of three years from the date of its issuance, unless there is a change in membership or structure of the not-for-profit oil spill response cooperative or a change in the citizenship status of any of its members requiring a report under §68.05–13. In order to renew the letter of qualification, a new certificate under oath must be filed with the Commandant at least 30 days before the date of expiration of the letter of qualification.

(c) A not-for-profit oil spill response cooperative seeking to document a vessel for a limited coastwise endorsement under this subpart, in addition to complying with the requirements of §68.05–7(a), shall supply to the National Vessel Documentation Center, a copy of the letter of qualification issued under paragraph (b) of this section.

(d) A member or members of a not-for-profit oil spill response cooperative seeking to document a vessel under this subpart shall supply to the National Vessel Documentation Center, a copy of the letter of qualification issued under paragraph (b) of this section to the not-for-profit oil spill response cooperative to which the vessel is dedicated. In addition, the not-for-profit oil spill response cooperative and the vessel owners shall all certify under oath that the vessel for which application is made is dedicated to use by the not-for-profit oil spill response cooperative. This certification must use the format and content described in appendix B to this subpart. If there is a change in the dedicated status of the vessel or its ownership, a report under §68.05–13 must be filed.

[GCD 89–007; GCD 89–007a, 58 FR 60266, Nov. 15, 1993, 58 FR 65131, Dec. 13, 1993, as amended by CGD 95–014, 60 FR 31606, June 15, 1995; USCG–1999–6216, 64 FR 53225, Oct. 1, 1999]

§ 68.05-13 Cessation of qualifications.
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(a) If the vessel is owned by a not-for-profit oil spill response cooperative and a change occurs which affects the validity of the certificate required by §68.05–11(a), or the ownership of the vessel changes so that it no longer meets the criteria of §68.05–5, the qualification for the privileges enumerated in §68.05–9 is terminated effective as of the date and time of the change. The not-for-profit oil spill response cooperative shall report the change in writing to the Director, National Vessel Documentation Center.

(b) If the vessel is owned by a member or members of a not-for-profit oil spill response cooperative and a change occurs which affects the validity of the certificate required by §68.05–11(a), or the ownership of the vessel changes so that it no longer meets the criteria of §68.05–5, the qualification of the member or members for the privileges enumerated in §68.05–9 is terminated effective as of the date and time of the change. The member or members shall report the change in writing to the Director, National Vessel Documentation Center.

(c) When qualifications are terminated under this section, the certificate of documentation issued under this subpart must be surrendered or exchanged in accordance with part 67 of this chapter.

[GCD 89–007; GCD 89–007a, 58 FR 60266, Nov. 15, 1993, 58 FR 65131, Dec. 13, 1993, as amended by CGD 95–014, 60 FR 31606, June 15, 1995; USCG–1999–6216, 64 FR 53225, Oct. 1, 1999]

Appendix A to Subpart 68.05 of Part 68—Oath for Qualification of a Not-For-Profit Oil Spill Response Cooperative
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Department of Homeland Security, U.S. Coast Guard

Oath for Qualification of a Not-For-Profit Oil Spill Response Cooperative [46 U.S.C. 12106(d)]

Cooperative:

Name____________________
Address____________________
Jurisdiction where incorporated or organized____________________
____________________

Affiant:

Name____________________
Address____________________
Cooperative____________________
Title or Capacity____________________

I, the affiant, swear that I am legally authorized to make this oath and hold the capacity so bestowed upon me as ____, on behalf of the _______ cooperative and its members, that it is a not-for-profit cooperative, and that it is engaged in training for, carrying out, or supporting oil spill cleanup operations or related research activities.

That all members of the cooperative who may use the letter of qualification issued to this cooperative are truly and correctly named, including home address and citizenship of each on the attached listing incorporated in and made a part of this oath.

Signature____________________

Subscribed and sworn to before me on the day and year shown.

____________________

(Notary Public)

Date____________________

[CGD 90–055, 57 FR 7642, Mar. 3, 1992, as amended by USCG–2003–14505, 68 FR 9535, Feb. 28, 2003]

Appendix B to Subpart 68.05 of Part 68—Oath for Documentation of Vessels for Use by a Not-For-Profit Oil Spill Response Cooperative
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Department of Homeland Security, U.S. Coast Guard

Oath for Documentation of Vessels For Use by a Not-For-Profit Oil Spill Response Cooperative [46 U.S.C. 12106(d)]

Cooperative:

Name____________________
Address____________________
Jurisdiction where incorporated or organized____________________
____________________

I, the undersigned officer of _____, a not-for-profit oil spill response cooperative, swear that I am legally authorized to make this oath on behalf of the cooperative, and its members and that the cooperative has accepted the vessel _____.

I/we _____, am/are the owner(s) of the vessel. I/we further swear that the vessel has been dedicated to the exclusive use of the cooperative for the purpose of training for, carrying out, or supporting oil spill cleanup operations or related research activities for discharges of oil into the navigable waters of the United States and the Exclusive Economic Zone and that the cooperative has accepted the vessel.

For the Cooperative:

Name____________________
Address____________________
Cooperative____________________
Title or Capacity____________________

For Each Vessel Owner:

Name____________________
Cooperative____________________
Title or Capacity____________________

Subscribed and sworn to before me on the day and year shown.

____________________

(Notary Public)

Date____________________

[CGD 90–055, 57 FR 7642, Mar. 3, 1992, as amended by USCG–2003–14505, 68 FR 9535, Feb. 28, 2003]