Restrictions are placed on a Certificate of Documentation when the Documented vessel is foreign-built. According to federal law, commercial endorsements such as Coastwise (charter and passenger vessels) can only be granted to vessels built entirely within the United States, unless a Maritime Administration waiver is granted. MARAD approves most waiver requests.
If you intend to file your application for the MARAD small vessel waiver, you may proceed to the link below:
https://unitedstatesvessel.us/marad-small-vessel-waiver-application/
What is the Small Vessel Waiver Program?
The Jones Act requires that vessels operating in coastwise commerce be built in the U.S. whenever possible. However, there are many cases in which foreign-built vessels or vessels of unknown build can contribute to U.S. commerce, especially those operating as commercial passenger vessels. The Passenger Vessel Services Act (PVSA) — contained within the Jones Act — authorizes MARAD to waive the U.S. build requirement in certain circumstances. These are known as Small Vessel Waivers.
Eligibility
To be eligible for a Small Vessel Waiver, the vessel must:
- be owned by a U.S. citizen or organization,
- be at least three years old,
- intend to carry passengers only,
- carry no more than 12 passengers at a time when in service, and
- satisfy a series of separate U.S. Coast Guard requireme
Important Notice:
Marine diesel engines certified by the US Environmental Protection Agency as recreational engines are in some cases prohibited from being used for commercial purposes. To learn more about how the US Environmental Protection Agency’s regulations may apply for your vessel, please visit EPA’s Domestic Marine Diesel Engine Web Page (EPA’s Domestic Marine Diesel Engine Web Page) or send an email to complianceinfo@epa.gov.
Denials & Exceptions
- A Small Vessel waiver does not waive any vessel documentation, manning, or inspection requirement per United States Coast Guard law.
- MARAD no longer issues waivers for “All coasts of the United States.” In the application’s Geographic Location space, list ALL States of intended operation (i.e., New York, Florida, etc.).
- Owners of U.S.-built vessels operating in certain geographic areas have demonstrated to MARAD that the introduction of foreign-built vessels would have an undue adverse affect on U.S. commerce in that area. MARAD will not issue waiver in these areas. Contact the Office of Cargo and Commercial Sealift with questions.
- Vessels that carry out activities such as carriage of cargo, commercial fishing, towing, dredging and salvage do NOT qualify for a Small Vessel waiver. Sport fishing vessels are permitted as long as caught fish are not sold commercially.
- MARAD can and will revoke a waiver if it is determined that any instance of fraud occurred during the application process.
An example of the MARAD Waiver Federal Register posting can be found via the link below:
https://public-inspection.federalregister.gov/2021-00013.pdf
Reference: Code of Federal Regulations Title 46 Part 67
§ 67.95 Requirement for determination. Evidence that a vessel was built in the United States must be on file for any vessel for which a coastwise or fishery endorsement is sought, unless the vessel is otherwise qualified for those endorsements under subpart J of this part.
§ 67.97 United States built. To be considered built in the United States a vessel must meet both of the following criteria:(a) All major components of its hull and superstructure are fabricated in the United States; and(b) The vessel is assembled entirely in the United States.
§ 67.99 Evidence of build. (a) Evidence of the facts of build may be either a completed original form CG-1261, or other original document containing the same information, executed by a person having personal knowledge of the facts of build because that person: (1) Constructed the vessel; (2) Supervised the actual construction of the vessel; or(3) Is an officer or employee of the company which built the vessel and has examined the records of the company concerning the facts of build of the vessel.(b) A vessel owner applying for documentation must file a separate certificate from each builder involved in the construction of the vessel. (c) A Manufacturer’s Certificate of Origin is not evidence of the facts of build.
§ 67.101 Waiver of evidence of build. (a) A vessel owner applying for documentation unable to obtain the evidence of build required by § 67.99 may apply for a waiver of that requirement to the Director, National Vessel Documentation Center. (b) No waiver of the requirement in § 67.99 to produce evidence of build may be granted unless the applicant provides: (1) A written request for the waiver, explaining why the evidence required by § 67.99 cannot be furnished; and (2) Competent and persuasive evidence of the facts of build.
