If you are looking to get your boat properly certified for the waters, this article will help you get started. It will explain what documentation is, its benefits, and how to apply for it.
Before a vessel can be Documented by the US Coast Guard, it must meet certain requirements. These include being wholly owned by a U.S. citizen, and having a minimum tonnage of 5 net tons.
What is Documentation?
Vessel documentation is the process of obtaining a Certificate of Documentation for an eligible boat from the U.S. Coast Guard National Vessel Documentation Center (NVDC).
The main benefit of USCG vessel documentation is that it offers a number of potential financial benefits. This includes tax savings for owners, enabling banks to secure loans on documented vessels, and eliminating the need for state registration of boats.
In order to obtain a certificate of documentation, you must meet several qualifications. First and foremost, your boat must have a net tonnage of at least five. The five-net-ton requirement is a measure of the vessel’s capacity rather than its weight; the size can often be determined by reviewing the vessel manufacturer’s documentation or consulting with an expert.
What is the Tonnage Requirement?
One of the most important requirements for obtaining vessel documentation search is to meet the tonnage requirement. The Coast Guard determines a vessel’s tonnage by utilizing a mathematical formula based on the length, breadth and depth of the vessel.
Some people may be able to estimate the required tonnage using a rule of thumb, or even a table or standard formula. However, these methods can be very inaccurate and are usually not the best way to figure out the required tonnage for a given operation.
The correct method is to use the available tonnage curve from the press manufacturer. This is an excellent way to measure the total energy capacity of the press, and also gives you the opportunity to compare the estimated peak load with the actual force curve.
What is the Ownership Requirement?
The ownership requirement is one of the most important factors to consider when pursuing vessel documentation. The owner must be a United States citizen (native born, naturalized or derivative) and the boat must be at least 5 net tons as defined by the Coast Guard.
The company that owns the vessel must also be a U.S. based corporation with executive officers who are citizens by birth, citizenship or descent and at least 75 percent of the board must be citizen directors.
In addition, the vessel must be a legal entity with the correct state and federal tax status, and the company must have an equity structure with shareholders who are allies of the government or are otherwise qualified as beneficiaries. The company must also have a stock option plan with vested options and other restricted stock grants counted in the ownership requirements.
What is the Purpose of Documentation?
Vessel documentation is a form of federal registration that dates back to the 11th Act of the First Congress in 1790. It provides a known standard for proving nationality for international purposes, regulates trade among coastal territories and fishing grounds, and clarifies ownership of vessels in the United States.
Currently, any vessel of five net tons or more that is wholly owned by a citizen of the United States must be documented. Exemptions include non-self-propelled vessels used in coastwise trade within a harbor, on rivers or lakes (except the Great Lakes), and in internal waters or canals of any state.
Documented vessels are marked with their Official Number on the interior of the vessel, usually on a main beam or inside of a locker. This Number serves as identification for the boat’s lifetime in the Federal documentation system and is revived when the vessel leaves documentation and returns.
How Do I Apply for Documentation?
Vessel documentation is a critical component of boat ownership. It can help prove your boat’s nationality for international purposes, regulate trade between coastal territories and fishing grounds, and clarify ownership of vessels in the United States.
It can also provide legal protection if you sell your vessel or lose it in a theft or accident. It may even help you avoid being charged sales tax and other local taxes.
You apply for documentation by completing an Application for Initial Issue, Exchange or Replacement Certificate of Documentation; or Redocumentation (form CG-1258). It is a good idea to complete a US Coast Guard Bill of Sale to make the process easier when you sell your boat.