For the purposes of this part and Part 4 of this chapter:

(a) The word "vessel" includes every description of watercraft or other contrivance used or capable of being used as a means of transportation on water, but does not include aircraft.

(b) The term "vessel of the United States" means any vessel documented under the laws of the United States.

(c) The term "documented" means registered, enrolled, and licensed, or licensed under the laws of the United States, whether permanently or temporarily.

(d) The term "marine document" includes registry, enrollment and license, and license.

(e) The term "port of documentation" means the home port of a vessel. It does not include a port in which a temporary document is issued.

(f) The term "mortgagee," in the case of a mortgage involving a trust deed and a bond issue thereunder, means the trustee designated in such deed.

(g) The term "noncontigious territory of the United States" includes all the island Territories and possessions of the United States, but does not include the Canal Zone.

(h) The term "parent corporation" means a corporation incorporated under the laws of the United States, or any State, Territory, District, or possession thereof, which controls, directly or indirectly, at least 50 percent of the voting stock of corporation which is a citizen of the United States as defined in §3.19(a) (4) and for which there is on file with the proper collector of customs a valid and current certificate under oath as required by § 3.21a.

(i) The term "subsidiary corporation" means a corporation incorporated under the laws of the United States, or any State, Territory, District, or possession thereof, not less than 50 percent of the voting stock of which is controlled, directly or indirectly, by a corporation which is a citizen of the United States as defined in § 3.19(a) (4) or by a parent corporation of any such corporation and for which there is on file with the proper

collector of customs a valid and current certificate under oath as required by § 3.21a.

(Sec. 27A, 72 Stat. 1736; 46 U.S.C. 883-1) § 3.2 Vessels entitled to documents.

(a) A vessel of 20 net tons or more may be registered or enrolled and licensed. A vessel of 5 net tons or more but less than 20 net tons may be licensed (except vessels subject to the provisions of paragraph (b) of this section) or registered.

(b) Any vessel of 5 net tons or more which is to be documented for navigating the waters of the northern, northeastern, or northwestern frontiers otherwise than by sea shall be granted a frontier enrollment and license, customs Form 1273, except that a vessel used exclusively as a pleasure vessel on those waters may be granted an enrollment and license as a yacht, customs Form 1290, if entitled to be so documented in accordance with the provisions of § 3.4. (See § 3.40.)

(c) The following classes of vessels are entitled to receive documents under existing laws:

Class 1. Any vessel built in the United States and wholly owned by a citizen.' A vessel of this class owned by a corporation which is qualified as a citizen of the United States under the definition contained in § 3.19 (a) (4) may be documented for use in the coastwise trade within the limitations specified in the Act of September 2, 1958 (46 U.S.C. 8831), if it is a non-self-propelled vessel or a self-propelled vessel of less than 500 gross tons (see also § 3.19 (e)).

Class 2. Any vessel purchased from the Maritime Administration or War Shipping Administration by a citizen. (See § 3.42.)

Class 3. Any vessel built in the United States in whole or in part for the account of one who is not a citizen and then recorded, which thereafter becomes wholly owned by a citizen and has never before been documented. (See § 3.47.)

Class 4. Any vessel captured by a citizen in a war to which the United States is a party, which has been lawfully condemned as a prize and is wholly owned by a citizen.

Class 5. Any vessel which has been judicially forfeited for a breach of the laws of the United States when wholly

2 For the meaning of the word "citizen" in this section, see § 3.19.

owned by a citizen. This includes a foreign-built vessel, but does not include any vessel not otherwise entitled to documents which has been sold under a decree of admiralty for debt or seamen's wages.

Class 6. Any vessel built in the United States and sold by the Government to a citizen. A foreign-built vessel bought or chartered by the Government is entitled to documentation if sold to a citizen and the requirements for class 9 are met.

Class 7. Any vessel authorized by special act of Congress to be documented.

Class 8. Any vessel wrecked on a coast of the United States or its possessions or in adjacent waters when purchased by a citizen and repaired in a shipyard in the United States or its possessions, provided it be proved to the satisfaction of the Commissioner of Customs, through a board of three appraisers appointed by him if necessary, that the repairs put upon such vessel are equal to three times the appraised salved value of the vessel. The expense of such appraisal shall be borne by the owner of the vessel. If any of the material facts sworn to or represented by the owner, or at his instance, to obtain a document for such vessel is not true, the vessel is liable to forfeiture.

Class 9. Any seagoing vessel, whether steam or sail, wherever built, wholly owned by a citizen. A foreign-built vessel of this class shall engage only in trade with foreign countries or the islands of Guam, Tutuila, Wake, Midway, or Kingman Reef. It shall not engage in the coastwise trade, except as specified in sections 18 and 22, Merchant Marine Act, 1920, as amended, nor in the American fisheries. (See § 3.42.)

(d) The appropriate one of the following notations shall be made on the register of any vessel owned by a corporation which is established as a citizen of the United States under the definition contained in §3.19(a)(3) or §3.19 (b), except when such register is required by any other provision of this part to bear an endorsement prohibiting the vessel from engaging in the coastwise trade:

(1) "Less than 75 percent of the interest in the corporation owning this vessel is owned by citizens of the United States. It shall not engage in the coastwise trade"; or

(2) "75 percent of the interest in the corporation owning this vessel is owned by citizens of the United States. It may

engage in the coastwise trade so long as so owned and no longer."

(e) The following notation shall be made on the enrollment and license or license of any non-self-propelled vessel or any self-propelled vessel of less than 500 gross tons owned by a corporation which is established as a citizen of the United States under the definition contained in § 3.19 (a) (4):

As amended by the Act of September 2, 1958 (46 U.S.C. 883-1). This vessel may engage in the coastwise trade, within the limitations specified in the Act, so long as so owned and no longer. It shall not engage in the fisheries and is not authorized to be documented for nor to engage in the foreign trade.

(f) No vessel of classes 1 through 8 above which has acquired the lawful right to engage in the coastwise trade, by virtue of having been built in or documented under the laws of the United States, shall have the right to engage in such trade if it thereafter has been sold or transferred foreign in whole or in part or placed under foreign registry (§ 3.43), or, if of more than 500 gross tons, has been rebuilt unless the entire rebuilding, including the construction of any major components of the hull or superstructure of the vessel, was effected within the United States, its Territories (not including trust territories), or its possessions. However, no rebuilt vessel shall be deemed to have lost its coastwise privileges within the meaning of the above merely because it may have been rebuilt within the United States, its Territories (not including trust territories), or its possessions under a contract executed before July 5, 1960, if the work of rebuilding is commenced not later than 24 months after such date (§ 3.28).3 When a vessel has lost its coastwise privileges, no document shall

* [Sec. 1] •

the second proviso of section 27 of the Merchant Marine Act, 1920, as amended (U.S.C., 1958 edition, title 46, sec. 883), is amended to read as follows: "Provided further, That no vessel of more than five hundred gross tons which has acquired the lawful right to engage in the coastwise trade, by virtue of having been built in or documented under the laws of the United States, and which has later been rebuilt, shall have the right thereafter to engage in the coastwise trade, unless the entire rebuilding, including the construction of any major components of the hull or superstructure of the vessel, is effected within the United States, its Territories (not

be issued for the coastwise trade and any document which may be issued to such vessel for any other trade or employment shall bear the following notation: "As amended by section 27 of the Merchant Marine Act of June 5, 1920, as amended. This vessel shall not engage in the coastwise trade."

(R.S. 4132, as amended, sec. 22, 41 Stat. 997, R.S. 4136, as amended, 4214, as amended, secs. 2, 9, 39 Stat. 729, as amended, 730, as amended, sec. 27, 41 Stat. 999, as amended, secs. 2, 3, 70 Stat. 544, 72 Stat. 1736, secs. 2, 3, 4, 74 Stat. 321; 46 U.S.C. 11, 13, 14, 103, 802, 808, 883, 883a, 883b, 883-1)

§ 3.3

4

Provisional registers.

(a) Consular officers of the United States and such other persons as may be designated by the President for the purpose are authorized to issue a provisional certificate of registry to any vessel abroad which has been purchased by a citizen, as defined in §3.19, and which at the time of such purchase is not documented as a vessel of the United States.

(b) Such provisional certificate shall entitle the vessel to the privileges of a vessel of the United States in trade with foreign countries or with the islands of Guam and Tutuila until the expiration of 6 months from the date thereof, or until 10 days after the vessel's arrival in a port of the United States, whichever first happens, and no longer. On arrival at a port of the United States, the vessel shall become subject to the laws relating to officers, inspection, and measurement.

(c) When a bill of sale covering such transfer is presented to an American consular officer:

(1) Satisfactory evidence shall be produced to establish that the transfer

including trust territories), or its possessions:"

Sec. 4. This Act shall be effective from the time of enactment hereof: Provided, however, That no vessel shall be deemed to have lost its coastwise privileges as a result of the amendments made by this Act if it is rebuilt within the United States, its Territories (not including trust territories), or its possessions under a contract executed before such date of enactment and if the work of rebuilding is commenced not later than twenty-four months after such date of enactment. (Secs. 1 and 4, Act of July 5, 1960 (74 Stat. 321))

"The captains of the ports of Cristobal and Balboa, Canal Zone, were designated by Executive Order No. 10351, dated May 15, 1952 (17 F. R. 4517).

of registry has the approval of the foreign government concerned.

(2) The bill of sale shall be filed with him.

(3) The vendee shall submit a certifiIcate as to the bona fides of the transfer of title and the citizenship of the vendee which the consul shall file with the bill of sale.

(4) If the vendor or his duly authorized representative be present, he shall also sign the certificate.

(5) The consular officer will investigate the circumstances surrounding the sale of the vessel and then communicate by dispatch, or by cable at the expense of the applicant, with the Commissioner of Customs through the Department of State, setting forth the results of his investigation; pertinent data regarding the vessel, such as its name, former nationality, rig, and gross and net tonnages; that the bill of sale and certificate of bona fides have been filed with him, giving the names of the vendor and vendee; whether the proposal to have the vessel placed under American registry has the approval of the foreign government concerned, or, if such approval is not required, stating that fact; his opinion as to whether the transfer was made in good faith; and whether it is intended that the vessel will be navigated to the United States on a voyage expected to terminate before the expiration date of the provisional register to be issued.

(6) On receipt of such a communication, if the transfer appears to be in good faith and the documentation of the vessel is not contrary to the policy of this Government, the Commissioner of Customs will award signal letters to the vessel and, through the usual channels, will promptly authorize the State Department to instruct the consular officer to issue a provisional certificate, customs Form 1266-A, to the vessel. The State Depart.nent will then cable, at the expense of the parties concerned, instructions and data for the issue of the provisional register.

(d) When bills of sale covering such transfers are presented to persons designated by the President for the purpose of issuing provisional certificates of registry, the procedure outlined in paragraph (c) of this section shall be followed. Communications in such cases shall be made through the appropriate departments.

(e) If bills of sale covering such transfers are presented to a collector of customs, the procedure outlined in paragraph (c) (1), (2), (3), (4), and (5) of this section shall be followed, except that the collector shall communicate directly with the Commissioner of Customs. Thereafter, if the transfer appears to be in good faith and it is not contrary to the policy of this Government, the Commissioner of Customs will award signal letters to the vessel and, through the usual channels, will promptly request the State Department to authorize the appropriate consular officer to issue a provisional certificate to the vessel. The State Department will then cable, at the expense of the parties concerned, instructions and data for the issue of the provisional register. No provisional certificate of registry shall be issued in any case unless authorized by the Commissioner of Customs.

(f) A duplicate provisional certificate, customs Form 1266-A, shall be forwarded as soon as practicable in every case by the issuing officer through the usual channels to the Commissioner of Customs.

(g) No provisional certificate shall be issued to any vessel abroad which at the time of its transfer to a citizen of the United States was documented as a vessel of the United States. Such a vessel may be redocumented at a port in the United States upon compliance with the requirements outlined in § 3.35 or if not so redocumented while abroad, it shall nevertheless be entitled to all the privileges and benefits of a vessel of the United States up to and for the purpose of its first arrival thereafter within a customs collection district or in a port of documentation outside any such customs collection district.

(Sec. 1, 38 Stat. 1193, as amended, R.S. 4166, as amended; 46 U.S.C. 12, 35)

§ 3.4

Yachts entitled to documents.

(a) Any vessel, other than one navigating the waters of the northern, northeastern, or northwestern frontiers otherwise than by sea, may be licensed as a yacht if under 20 but not under 5 net tons and used exclusively as a pleasure vessel, and if otherwise entitled to be documented.

(b) Any vessel may be enrolled and licensed as a yacht if used exclusively as a pleasure vessel and otherwise entitled to be documented, provided it is of 5 net tons or over in the case of a vessel

navigating the waters of the northern, northeastern, or northwestern frontiers otherwise than by sea, or 20 net tons or over in any other case.

(R. S. 4214, as amended; 46 U. S. C. 103) § 3.5 Vessels exempt from documentation.

(a) The following classes of vessels are exempt from documentation:

(1) Boats or lighters not masted, or masted but not decked, used in the harbor of any town or city, and not carrying passengers.

(2) Canal boats, barges, or other boats used in whole or in part on canals or on the internal waters of a State, without sail or internal motive power of their own, not engaged in trade with contiguous foreign territory, and not carrying passengers.

(3) Barges or boats without sail or internal motive power of their own plying in whole or in part on inland rivers or lakes of the United States, not engaged in trade with contiguous foreign territory, and not carrying passengers.

(4) Vessels plying upon waters which are wholly within the limits of a State and which have no outlet into a river or lake on which commerce with foreign nations or among the States can be carried on.

(5) Vessels of less than 5 net tons.

(b) All other vessels engaged in trade between ports in the United States or engaged in the fisheries, if not registered, shall be enrolled and licensed, or licensed, or will be liable to a penalty of $30 on every arrival, unless the vessel has not been within a customs district since the expiration of the license.

(c) No vessel exempt from documentation under the provisions of paragraph (a) (1), (2), (3), or (5) of this section and owned by a corporation which is a citizen of the United States as defined in § 3.19(a) (4) shall be operated in trade on the navigable waters of the United States unless there is on file with the collector of customs for the district in which the vessel business of the owner is conducted a valid and current certificate under oath on customs Form 1260 as required by § 3.21(f).

(Sec. 7, 24 Stat. 81, as amended, 21 Stat. 44, R.S. 4385, 18 Stat. 31, 72 Stat. 1736; 46 U.S.C. 319, 332, 335, 336, 883-1)

§ 3.6 Marine documents; kinds of.

(a) Marine documents are of two descriptions, (1) permanent, granted to

5

vessels at their home ports and (2) temporary, granted to vessels at ports other than their home ports."

(b) A register or enrollment shall be valid until a contingency arises requiring its surrender. (See §§ 3.26, 3.27.) A license shall be valid for one year only, but may be renewed or changed at any time during the year for which it is granted. Care shall be taken that only one license, and for one employment, be granted to a vessel for the same period, except that a license may be granted for the "coasting trade and mackerel fisheries."

(c) No enrollment and license or license shall be considered in force longer than the vessel to which it is granted is owned as stated in the document, nor shall it be valid if the description of the vessel is changed, nor if the vessel engages in any business or employment other than that for which the document was granted.

(R.S. 4138, 4191, 4315, as amended, 4324, 4327; 46 U.S.C. 16, 62, 255, 266, 269)

§ 3.7 Marine documents; execution of. All marine documents shall be signed and sealed by the collector before being issued.

(R. S. 4157, as amended, 4158, as amended; 46 U.S.C. 27, 28)

§ 3.8 Marine documents; new.

When a new marine document is issued in lieu of one surrendered, such new document shall in every case cite the previous document by number, date, and port of issue, carry any notation of the authority for redocumentation or of the existence of unsatisfied preferred mortgage appearing on the surrendered document, and give the cause of surrender of the old document. A certificate of the builder shall not be required, nor shall a certificate of admeasurement be required unless some change of ton

Under the "Seattle plan," which is in force in a number of customs districts, a vessel having its home port within the customs collection district may secure a permanent document at any other port in the same district at which marine documents are issued.

5a The ports at which marine documents may be issued are indicated in § 1.1 of this chapter.

The penalty for neglecting to surrender a document when required by law is the forfeiture of all privileges and benefits of a vessel of the United States. (R.S. 4169; 46 U.S.C. 38)

nage has taken place since the time of the previous documentation. (See §§ 3.26, 3.27 and 3.30.)

§ 3.9 Marine documents to include dimensions and tonnage.

The marine document of every vessel shall express her length, breadth, and depth; the number of decks and masts; the tonnage under the tonnage deck; the tonnage of the poop or other enclosed space above the deck; the gross tonnage; each deduction made from the gross tonnage; and the net or register tonnage. In appropriate cases it shall also show the height under the third or spar deck and the tonnage on the between decks above the tonnage deck.

(R.S. 4150, 4153, as amended; 46 U.S.C. 74, 77) § 3.10 Registers.

Vessels of the United States engaged in the foreign trade shall be registered, except as provided for in § 3.40 with respect to vessels on the northern, northeastern, and northwestern frontiers. Vessels engaged in domestic trade only, other than vessels owned by citizens of the United States as defined in § 3.19 (a) (4) and documented or to be documented under the Act of September 2, 1958 (46 U.S.C. 883-1), may be registered. (See § 3.30.)

(R.S. 4132, as amended, sec. 22, 41, Stat. 997, sec. 27A, 72 Stat. 1736; 46 U.S.C. 11, 13, 883-1) § 3.11 Enrollment and license; coasting trade and fisheries.

(a) When employed in the coasting trade and fisheries, a vessel of 20 net tons or over shall be enrolled and licensed and a vessel of 5 net tons or over but less than 20 net tons shall be licensed, unless such vessel is registered. (See § 3.10.)

(b) A vessel engaged exclusively in the cod fishery shall be licensed for that fishery. A vessel engaged in whaling shall be licensed for the whale fishery. A vessel engaged in taking fish of any other description shall be licensed for the mackerel fishery. A vessel licensed for the fisheries shall not be deemed to be used in employment for which not licensed solely because it оссаsionally takes on board on the high seas and transports without a monetary consideration to a port of the United States the catch of another fishing vessel of the United States. A vessel which engages in both the coasting trade and fishing (other than whaling) may be li