by Documentation is a process that establishes an official basis for vessel identification and control. It serves to facilitate trade and commerce by classifying vessels for regulation, safety, pilotage, fee assessment and taxation purposes.
Vessel documentation is mandatory for commercial vessels five net tons or more, and optional for recreational vessels five net tons or less.
Type of Vessel
A documented vessel is one that has been inspected and certified by the Coast Guard as being able to safely operate on the waters of the United States. This includes recreational, coastwise, fisheries, and registry vessels as well as commercial towboats, dredges, and oceanographic research vessels.
To qualify for documentation, a vessel must measure at least five net tons and be owned entirely by a U.S. citizen. This is a requirement for all vessels used in coastwise trade or fishing activities on the navigable waters of the US or the Exclusive Economic Zone (EEZ) that surrounds the continental US up to 200 miles offshore.
Vessels must also be us coast guard documentation with an official number, a designated name, and a hailing port. The size and location of these markings are determined by Coast Guard regulations. Duplication of names for documented vessels is not allowed.
Ownership Qualifications
If you are in the boating business, you know that ownership qualifications are crucial for ensuring your vessel is in tip-top shape. The USCG requires documentation for all vessels that measure at least 5 net tons, are owned entirely by a U.S. citizen, and are operated in the United States or its Exclusive Economic Zone (EEZ) fisheries. Exemptions include non-self-propelled towboats and dredges used in port operations and river and lake activities.
There are several requirements for a successful documentation application, but the most important is a clear understanding of your vessel’s eligibility for U.S. flagging, including determining which federal, state or local jurisdictions have authority to grant it and determining which one has the most relevant documentation laws and regulations. This will help you avoid costly and time-consuming red tape, thereby saving you money in the long run. For instance, if your vessel is operating in the Gulf of Mexico, your documentation application must be approved by the appropriate jurisdiction.
Endorsements
The USCG requires vessels that are 100 feet and larger to be documented with at least one endorsement. The primary operational endorsements are fishery, coastwise, registry and recreational.
For most vessels, the owner must be a United States citizen for a vessel to qualify for a fishery or coastwise endorsement. The chief executive officer and a majority of the board members must also be U.S. citizens for these endorsements.
Generally, all documentation must be renewed on an annual basis or when the original Certificate of Documentation expires. The owner must certify in an original Notice of Expiration (CG-1280) or Final Notice After Expiration (CG-1280-B) that the information contained in the Certificate remains accurate and that the Certificate has not been lost, mutilated or wrongfully withheld.
Marine employers are encouraged to periodically verify the validity of their employees’ MMCs by using the USCG’s Merchant Mariner Verification tool. It is critical to identify mariners who may have had their MMC invalidated, revoked, suspended or fraudulently altered over the course of the standard five-year issuance cycle.
Taxes
Taxes are a mandatory contribution that people and businesses make to local, state and federal governments. They fund public goods and services from schools to national defense.
Governments use taxes to achieve a number of objectives, including resource allocation, income redistribution, and economic stability. The objectives are usually derived from an analysis of economic policies.
Direct taxes are levied on the income, property and consumption of individuals or corporations and are calculated based on the ability to pay. Examples of this include taxes on salaries, dividends, investment gains, cash prizes and property appreciation.
Taxes also include sales taxes, customs duties and tariffs. These are imposed on goods and services imported into the country or sold by retailers to consumers. Some are collected immediately at the time of a transaction and others are on a fixed recurring schedule with a due date that repeats every year.