(b) A vessel, although owned and documented by a corporation which is a citizen as defined in paragraph (a) (3) of this section, shall not engage in the coastwise trade unless 75 percent of the interest in the corporation is owned by citizens as specified in section 2 of the Shipping Act, 1916, as amended.1o

in a manufacturing or mineral industry in the United States or any Territory, District, or possession thereof;

(d) The aggregate book value of the vessels owned by such corporation does not exceed 10 per centum of the aggregate book value of the assets of such corporation; and

(e) Such corporation purchases or produces in the United States, its Territories, or possessions not less than 75 per centum of the raw materials used or sold in its operations

but no vessel owned by any such corporation shall engage in the fisheries or in the transportation of merchandise or passengers for hire between points in the United States, including Territories, Districts, and possessions thereof, embraced within the coastwise laws, except as a service for a parent or subsidiary corporation and except when such vessel is under demise or bareboat charter at prevailing rates for use otherwise than in the domestic noncontiguous trades from any such corporation to a common or contract carrier subject to part 3 of the Interstate Commerce Act, as amended, which otherwise qualifies as a citizen under section 2 of the Shipping Act, 1916, as amended (46 U.S.C. 802), and which is not connected, directly or indirectly, by way of ownership or control with such corporation.

As used herein (1), the term "parent" means a corporation which controls, directly or indirectly, at least 50 per centum of the voting stock of such corporation, and (2), the term "subsidiary" means a corporation not less than 50 per centum of the voting stock of which is controlled, directly or indirectly, by such corporation or its parent, but no corporation shall be deemed to be a "parent" or "subsidiary" hereunder unless it is incorporated under the laws of the United States, or any State, Territory, District, or possession thereof, and there has been filed with the Secretary of the Treasury a certificate as hereinafter provided.

Vessels built in the United States and owned by a corporation meeting the conditions hereof which are non-self-propelled or which, if self-propelled, are of less than five hundred gross tons shall be entitled to documentation under the laws of the United States, and except as restricted by this section, shall be entitled to engage in the coastwise trade and, together with their owners or masters, shall be entitled to all the other benefits and privileges and shall be subject to the same requirements, penalties, and forfeitures as may be applicable in the case

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(c) A vessel, although owned by a corporation which is not a citizen as defined in section 2 of Shipping Act, 1916, as amended, may be documented as a vessel of the United States if the sale or transfer to the corporation was not in violation of section 9 or 37 of the Shipping Act, 1916, as amended (46 U. S. C. 808, 835), and if the corporation is a citizen as defined in paragraph (a) (3) of this section.

of vessels built in the United States and otherwise documented or exempt from documentation under the laws of the United States.

A corporation seeking hereunder to document a vessel under the laws of the United States or to operate a vessel exempt from documentation under the laws of the United States shall file with the Secretary of the Treasury of the United States a certificate under oath, in such form and at such times as may be prescribed by him, executed by its duly authorized officer or agent, establishing that such corporation complies with the conditions of this section above set forth. A "parent" or "subsidiary" of such corporation shall likewise file with the Secretary of the Treasury a certificate under oath, in such form and at such time as may be prescribed by him, executed by its duly authorized officer or agent, establishing that such "parent" or "subsidiary" complies with the conditions of this section above set forth, before such corporation may transport any merchandise or passengers for such parent or subsidiary. If any material matter of fact alleged in any such certificate which, within the knowledge of the party so swearing is not true, there shall be a forfeiture of the vessel (or the value thereof) documented or operated hereunder in respect to which the oath shall have been made. If any vessel shall transport merchandise for hire in violation of this section, such merchandise shall be forfeited to the United States. If any vessel shall transport passengers for hire in violation of this section, such vessel shall be subject to a penalty of $200 for each passenger so transported. Any penalty or forfeiture incurred under this section may be remitted or mitigated by the Secretary of the Treasury under the provisions of section 7 of Title 46, United States Code.

Any corporation which has filed a certificate with the Secretary of the Treasury as provided for herein shall cease to be qualified under this section if there is any change in its status whereby it no longer meets the conditions above set forth, and any documents theretofore issued to it, pursuant to the provisions of this section, shall be forthwith surrendered by it to the Secretary of the Treasury. (46 U.S.C. 883-1)

10 "(a) Within the meaning of this chapter no corporation, partnership, or association

(d) A vessel, although owned by a partnership or association which is a citizen as defined in section 2 of the Shipping Act, 1916, as amended, shall not be documented as a vessel of the United States unless the owner is also a citizen as defined in paragraph (a) (2) of this section.

(e) A corporation which qualifies as a citizen as defined in paragraph (a) (4)

shall be deemed a citizen of the United States unless the controlling interest therein is owned by citizens of the United States, and, in the case of a corporation, unless its president or other chief executive officer and the chairman of its board of directors are citizens of the United States and unless no more of its directors than a minority of the number necessary to constitute a quorum are noncitizens and the corporation itself is organized under the laws of the United States or of a State, Territory, District, or possession thereof, but in the case of a corporation, association, or partnership operating any vessel in the coastwise trade the amount of interest required to be owned by citizens of the United States shall be 75 per centum.

"(b) The controlling interest in a corporation shall not be deemed to be owned by citizens of the United States (a) if the title to a majority of the stock thereof is not vested in such citizens free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; or (b) if the majority of the voting power in such corporation is not vested in citizens of the United States; or (c) if through any contract or understanding it is so arranged that the majority of the voting power may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States or (d) if by any other means whatsoever control of the corporation is conferred upon or permitted to be exercised by any person who is not a citizen of the United States.

"(c) Seventy-five per centum of the interest in a corporation shall not be deemed to be owned by citizens of the United States (a) if the title to 75 per centum of its stock is not vested in such citizens free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; or (b) if 75 per centum of the voting power in such corporation is not vested in citizens of the United States; or (c) if, through any contract or understanding, it is so arranged that more than 25 per centum of the voting power in such corporation may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; or (d) if by any other means whatsoever control of any interest in the corporation in excess of 25 per centum is conferred upon or permitted to be exercised by any person who is not a citizen of the United States." (46 U.S.C. 802)

of this section is not thereby precluded from qualifying as a citizen under any other applicable definition and vessels which it owns or operates shall be entitled to be documented as vessels of the United States under any other provision of this part upon compliance with all applicable requirements.

(R.S. 4132, as amended, 4131, as amended, secs. 2, 9, 39 Stat. 729, as amended, 730, as amended, sec. 4, 40 Stat. 901, as amended, 72 Stat. 1736; 46 U.S.C. 11, 221, 802, 808, 835, 883-1)

§ 3.20

Evidence of citizenship of owners and officers.

(a) In addition to any oath, certificate, or declaration of citizenship specified, the collector of customs may require the production of such further evidence as may be necessary to satisfy him that the person is a citizen of the United States. The proper notation of the evidence produced shall be made on the papers retained in the collector's office, such as the number, date, and office of issue of an officer's license, seaman's passport, or citizen's passport, or the same data as to a birth or naturalization certificate, a continuous discharge book, or a certificate of identification, etc. The collector shall reject any evidence believed by him to be unauthentic.

(b) As evidence of his citizenship, a naturalized citizen shall be required in every case to present a certificate of his naturalization. A derivative citizen shall be required to present either a certificate of naturalization of either parent through whom he derived his own citizenship, together with a birth certificate or other evidence satisfactorily establishing that he was under 21 years of age at the time of his parent's naturalization, or a certificate of derivative citizenship. The usually acceptable evidence of citizenship for other persons is described below in the order of desirability.

(1) A birth certificate or certified copy.

(2) A baptismal certificate or parish record made within 1 year after birth.

(3) A certificate of a practicing physician that he attended the birth and that he has a record in his possession showing the date on which it occurred.

(4) A State Department passport. (5) An active commission in the United States Navy, Marine Corps, Coast Guard, or reserve component thereof.

(6) An active commission in the United States Army or a reserve component thereof issued prior to May 26, 1942.

(7) A license as master, mate, engineer, or pilot issued by the Coast Guard, or a license as master, mate, engineer, or pilot issued by the former Bureau of Marine Inspection and Navigation when such license shows on the back thereof that satisfactory evidence of citizenship of the holder was produced at the time of the issuance of such license.

(8) A certificate of registry as staff officer.

(9) A continuous discharge book or certificate of identification issued by the Coast Guard which shows that the holder is an American citizen, or a continuous discharge book or certificate of identification issued by the former Bureau of Marine Inspection and Navigation which shows the holder is an American citizen, provided the records of that Bureau (now maintained by the Coast Guard) indicate that the holder of such continuous discharge book or certificate of identification has produced satisfactory evidence of his citizenship.

(10) A delayed certificate of birth. If an applicant claiming to be a citizen of the United States submits a delayed certificate of birth which has been issued in accordance with the procedure outlined in the Manual of Uniform Procedure for the Delayed Registration of Births 12 and recites on its face the evidence upon which it has been granted, it may be accepted as prima facie evidence of citizenship in the absence of any collateral facts indicating fraud in its procurement. In order to receive consideration as a delayed certificate of birth, the certificate shall have been issued strictly in accordance with the provisions of the manual above referred to. Any delayed birth certificate not so issued shall be given consideration but shall not necessarily be considered prima facie evidence of citizenship.

(11) If none of the foregoing requirements can be met by the applicant, he shall make a statement to that effect, and, in an attempt to establish citizen

12 This manual was issued by the Department of Commerce on July 16, 1941, and is filed with the Office of the Federal Register.

13 Census records are available for the following years: 1860, 1870, 1880, 1900, 1910, 1920, 1930, and 1940. Records for 1890 are not available.

ship, he may submit for consideration data of the following character:

18

(i) Report of the Census Bureau showing the earliest record of age or birth available. Request for such information shall be addressed to the Director of the Census, Washington 25, D. C. In making such request, definite information must be furnished the Census Bureau as to the place of residence when the first census was taken after birth of the applicant, giving the name of the street and number of the house, or the names of the cross streets between which the house was located if residing in a city; or the name of the town, township, precinct, magisterial district, militia district, beat or election district, if residing in the country; also the names of parents, or the names of other persons with whom residing on the date specified.

(ii) Declarations of fact by parents or relatives; declarations by two or more responsible citizens of the United States stating facts of which they have knowledge tending to establish the applicant's citizenship; school records; immigration records; or insurance policies.

(R.S. 4142, 4144, 4313; 46 U.S.C. 19, 22, 253) § 3.21

Execution of oaths for documentation, for operation of certain vessels exempt from documentation, and for qualification of certain corporations as citizens of the United States. (a) If the vessel be owned by one individual, the oath shall be taken by him or by his duly authorized agent.

(b) If the vessel be owned by several individuals or a firm or unincorporated company, the oath shall be taken by the managing owner or a member of the firm who shall specify the names and places of abode of, and except in the case of a partnership the proportions of the vessel owned by, each of the others, and shall certify to their citizenship.

(c) If the vessel be owned by a corporation, the oath shall be taken by its president, its secretary, or by any other officer or agent thereof duly authorized by a writing under the corporate seal to act in its behalf. Such officer or agent shall also furnish a certificate as to the organization of the corporation and the names of its president or other chief executive officer, chairman of its board of directors, and directors, showing the home address and citizenship of each and the number of directors necessary to

constitute a quorum, including a quotation of the pertinent portion of the articles of incorporation, bylaws, or other corporate papers relating to the matter of a quorum. If the corporate owner is qualified as a citizen of the United States under the definition contained in §3.19 (a) (4), the oath shall be on customs Form 1260 and the accompanying certificate shall include information as to the names, home address, and citizenship of all officers and directors.

(d) In all cases where there is more than one owner, the proportions owned by each shall be stated in the oath.

(e) The oath of the owner or of the master required for documentation may be taken before a collector of customs or before any officer authorized by the laws of a state to administer oaths generally. If the oath is not taken before the collector, it may be mailed to him. (f) A corporation which meets the qualification requirements of §3.19(a) (4) as a citizen of the United States and which seeks to operate in trade a vessel owned by such corporation and exempt from documentation under § 3.5 shall file in duplicate with the collector of customs for the district in which the vessel business of the owner is conducted a certificate under oath on customs Form 1260 by its president, its secretary, or by any officer or agent thereof duly authorized by a writing under the corporate seal to act in its behalf. Such officer or agent shall also furnish in duplicate a certificate as to the organization of the corporation and the names of all officers and directors of the corporation, showing the home address and citizenship of each.

(g) A corporation which meets the qualification requirements of §3.19 (a) (4) as a citizen of the United States and which seeks to qualify under the Act of September 2, 1958 (46 U.S.C. 883-1), for any purpose other than as outlined in paragraph (f) hereof shall file in duplicate with the Commissioner of Customs a certificate under oath on customs Form 1260, appropriately modified to omit reference to any vessel, by the corporation's president, its secretary, or by any other officer or agent thereof duly authorized in writing under the corporate seal to act in its behalf. Such officer or agent shall also furnish in duplicate a certificate as to the organization of the corporation and the names of all officers and directors of the corporation, showing the home address and citizenship of each, and shall state in duplicate in writing

the reasons for desiring to qualify under the Act and the reasons why qualification is not sought under paragraph (c) or (f) of this section.

(h) If any change occurs in any corporation after the filing of a certificate under oath and the other papers required under paragraph (f) or (g) of this section whereby the corporation is no longer entitled to be deemed a citizen of the United States as defined in § 3.19(a) (4), the corporation shall cause a report of such change to be made in writing in duplicate to the office where the previous certificate under oath was filed.

(i) Upon the filing of a certificate under oath and the other papers required under paragraph (f) or (g) of this section, the collector of customs or the Commissioner of Customs shall furnish the corporation, through its officer or agent, a certificate of filing of such oath on customs Form 1262 which shall be valid for a period of 3 years from the date of its issuance unless there first occurs a change in corporate status requiring a report under paragraph (h) of this section. On or before the date of expiration of the validity of such certificate, a new oath on customs Form 1260 and the other papers required by paragraph (f) or (g) of this section shall be filed with the appropriate officer.

(j) The duplicate copy of the oath and other papers required by paragraphs (f) and (h) of this section and a copy of any certificate issued by the collector under paragraph (i) of this section shall be forwarded promptly to the Commissioner of Customs, who will cause notice of the contents thereof to be given to all collectors of customs concerned. The Commissioner will also give similar notice of the contents of any oath filed with him under paragraph (g) of this section. (Sec. 1, 61 Stat. 633, as amended, 44 Stat. 830, R.S. 4138, 4142, 4139, as amended, 4148, 4144, 4163, 4314, as amended, 4320, as amended, 72 Stat. 1736; 1 U.S.C. 1, 5 U.S.C. 92a, 46 U.S.C. 16, 19-22, 33, 254, 262, 883-1) § 3.21a

Execution of oaths by a parent or subsidiary corporation.

(a) A parent or subsidiary corporation as defined in § 3.1 (h) and (i) shall file a certificate under oath on customs Form 1263 executed by its duly authorized officer or agent establishing the facts respecting the citizenship of such parent or subsidiary corporation before any vessel owned by a corporation as defined in

§3.19(a) (4) shall transport any merchandise or passengers for such parent or subsidiary corporation, whether the transporting vessel is documented as a vessel under the laws of the United States or is exempt from the requirements for documentation under § 3.5(c) or otherwise.

(b) The certificate under oath required under paragraph (a) of this section shall be filed in duplicate with the collector of customs at the vessel's home port if the vessel is documented as a vessel of the United States or, if not so documented, with the collector of customs for the district in which the vessel business of the owner is conducted. Such officer or agent shall also furnish in duplicate a certificate as to the organization of the corporation and the names of all officers and directors of the corporation, showing the home address and citizenship of each.

(c) When there is any change in the status of a parent or subsidiary corporation which is a citizen of the United States whereby such corporation shall cease to be qualified as a citizen, such corporation shall cause a report of such change to be made in writing in duplicate to the collector of customs at the port where the previous certificate under oath was filed.

(d) The duplicate copy of the oath and other papers required by this section shall be forwarded promptly to the Commissioner of Customs, who will cause notice of the contents thereof to be given to all collectors of customs concerned.

(72 Stat. 1736; 46 U.S.C. 883-1)

§3.22 Issue and record of marine docu

ments.

(a) An exact copy of each marine document issued by a collector of customs shall be placed in a permanent record kept for that purpose and a proper index made thereof on customs Form 1241 (on customs Form 2112 at the port of New York).

(b) At the time application is made for a new document, any former document of the vessel shall be surrendered to the collector to whom the application is made, unless the former document has been lost, mutilated, destroyed, or unintentionally mislaid. (See § 3.31.)

(c) On proof that any vessel has been sold or transferred by process of law and that her former owner has retained the marine document, the collector at

the vessel's home port may grant a new document and shall not refuse to issue such a document merely because the last document is retained by the former owner. In any such case, the new owner shall not be required to produce and surrender the former document, but the issuance of the new document does not remove the liability of the holder of the former document for failure to surrender it.

(d) Upon any change in the address of an owner as shown upon a marine document, a prompt report, giving both the old and the new addresses, shall be made to the collector of customs at the vessel's home port and the marine document shall be presented for amendment of the address to any collector of customs at the first opportunity.

(e) No document shall be issued to any vessel prior to the receipt by the collector of the approval of the designation of the home port by or on behalf of the owner in whose name the document is to be issued.

(f) When a document is issued to a vessel on the Great Lakes, it shall be delivered by the collector in a special envelope, customs Form 1503. When a document is issued to a vessel elsewhere than on the Great Lakes, it shall be delivered in a special envelope, customs Form 1502. In the case of the issuance of any document other than a register or an enrollment and license on customs Form 1276, the date upon which the license for the vessel will expire shall be noted plainly on the face of the envelope.

(R.S. 4141, sec. 1, 43 Stat. 947, R.S. 4155, as amended, 4164, as amended, 4176, 4314, as amended, 4319, as amended, 4329, as amended; 46 U.S.C. 17, 18, 25, 34, 44, 254, 259, 271) § 3.23 Permanent documentation of vessel absent from home port.

(a) A permanent document may be issued to any vessel absent from her home port upon application to the collector for the home port through the office of the collector at the port where the vessel shall be. In such case, all requirements which would be applicable if the vessel were at her home port shall be met at the port where she is before the application is forwarded, except that the owner's and master's oaths may be executed at the home port.

(b) The collector through whom application was made shall forward a certificate on customs Form 1301 to the collector at the vessel's home port, who