Foreign-built vessels can face an important obstacle when their owners want to conduct commercial passenger operations between U.S. points. The federal rules governing coastwise trade generally require qualifying vessels to meet U.S.-build requirements. For eligible small passenger vessels, applying for a MARAD waiver may provide a path to obtaining an administrative waiver of that requirement.

What Is a MARAD Small Vessel Waiver?

The Maritime Administration (MARAD), an agency within the U.S. Department of Transportation, administers the Small Vessel Waiver Program. The program allows certain foreign-built or unknown-origin vessels to receive a waiver of the U.S.-build requirement associated with the Passenger Vessel Services Act.

A waiver does not eliminate every federal requirement that applies to a commercial vessel. Instead, it addresses the applicable U.S.-build requirement when MARAD determines that the statutory and regulatory conditions are satisfied. Vessel owners must still comply with applicable U.S. Coast Guard documentation, safety, inspection, and manning requirements.

Eligibility Standards When Applying for a MARAD Waiver

Before submitting an application, an owner should determine whether the vessel and its proposed operation fit the Small Vessel Waiver Program. MARAD identifies several basic eligibility requirements:

The vessel must be owned by a U.S. citizen or qualifying U.S. organization.
The vessel must be at least three years old.
The vessel must be intended to carry passengers only.
The vessel may carry no more than 12 passengers at a time while in service.
The vessel must satisfy applicable U.S. Coast Guard requirements.

Certain activities can make a vessel ineligible for the program. MARAD states that vessels engaged in cargo carriage, commercial fishing, towing, dredging, or salvage do not qualify for a Small Vessel Waiver. Sport fishing may be permitted when the fish are not sold commercially.

Owners should also distinguish the waiver from ordinary boat registration requirements. A MARAD approval is not a substitute for the Coast Guard documentation or other authorizations that may apply to the vessel.

What Information Is Required for the MARAD Application?

MARAD uses Form MA-1023 for the Small Vessel Waiver application. The form requests information that allows the agency to evaluate the vessel, ownership, proposed operation, and potential effects on domestic maritime interests.

The application includes information such as:

Vessel name and owner information
Official number, hull identification number, or state number
Base of operations and homeport
Construction date and place of construction
Vessel type and length
Net tonnage and passenger capacity
Intended commercial use
States where the vessel will operate
Information concerning the effect on existing commercial passenger vessel operators
Information concerning the potential effect on U.S. shipyards

What to Review Before Applying for a MARAD Waiver

The geographic portion of the application requires particular attention. MARAD no longer accepts a general designation covering all U.S. coasts. Applicants must identify the states of intended operation, and MARAD’s current instructions limit applicants to two coasts.

The application also asks for information about potential effects on existing commercial passenger vessel operators and U.S. shipyards. MARAD evaluates these considerations when determining whether issuing the waiver would create an undue adverse effect on domestic maritime interests.

Part Two: Completing the Process and U.S. Coast Guard Documentation

Applying for a MARAD waiver is a federal administrative process, and the application is only one part of preparing a vessel for commercial passenger operations. After the MARAD portion is addressed, the vessel owner may need to handle separate Coast Guard documentation matters through the National Vessel Documentation Center.

Public Notice and MARAD Review

After an application is submitted, MARAD publishes the proposed waiver request in the Federal Register for a 30-day public notice period. The agency uses this process to evaluate whether granting the waiver could have an undue adverse effect on U.S. vessel builders or existing commercial passenger vessel operators.

The process for applying for a MARAD waiver also depends on an accurate description of the intended operation. MARAD’s review can consider the geographic area involved, existing operators, and U.S. shipyards that build or could build similar vessels.

MARAD’s current Small Vessel Waiver Program information states that the application fee is $500 and is non-refundable. The agency recommends submitting the application online and paying through the online payment option. Applicants should also review the agency’s current instructions before submitting an application because federal procedures can change.

The Coast Guard Documentation Stage

A MARAD waiver does not itself create a Coast Guard endorsement or satisfy Coast Guard documentation requirements. After approval, MARAD states that owners should file for a Coastwise Trade Endorsement for passenger trade if the vessel does not already have one.

For owners working through their vessel records, a foreign vessel title search/transcript of registry can be relevant when applying for a MARAD waiver. Our National Documentation E-Portal provides access to vessel documentation forms and related online services, including the Maritime Small Vessel Waiver Application.

Our online portal is designed to make Coast Guard documentation paperwork easier to access and submit. Depending on the vessel’s circumstances, our available services include initial vessel documentation, transfers, renewals, certified copies, changes to vessel information, and other Coast Guard documentation forms.

Using Our Online Documentation Services

Our services include. When applying for a MARAD waiver, owners can access the applicable online form through our portal. Our services include:

Maritime Small Vessel Waiver Application
Initial Vessel Documentation
Transfer or Exchange of Documentation
Renewal of a Certificate of Documentation
Replacement of a Certificate of Documentation
Certified Copy of Documentation
Vessel Abstract of Title
Change of Vessel Name or Hailing Port
Change of Endorsement/Trade Indicator
Deletion from U.S. Coast Guard Documentation
Foreign Vessel Title Search Request
Document Upload

For owners handling the documentation side of a foreign-built passenger vessel, a vessel documentation search is also available through our portal.

Owners can review the federal regulations governing the Small Vessel Waiver Program in 46 CFR Part 388. The regulations provide the formal framework for the waiver process and should be reviewed alongside the current MARAD application instructions.

What the Waiver Does—and Does Not—Do

A Small Vessel Waiver is focused on the U.S.-build requirement. It does not automatically authorize every type of commercial activity, remove Coast Guard requirements, or replace a Certificate of Documentation or required endorsement.

Before beginning commercial operations, owners should understand that separate federal requirements can apply to:

Vessel documentation
Coastwise trade endorsements
Inspection requirements
Manning requirements
Passenger safety requirements
Applicable environmental or engine requirements

MARAD also states that a waiver may be revoked if fraud occurred during the application process. Accurate information in the application is therefore an essential part of the federal process.

Moving From MARAD Approval to Coast Guard Documentation

Once the MARAD portion of the process has been addressed, vessel owners must still take care of any applicable Coast Guard documentation requirements. A waiver concerns the federal restriction on the use of certain foreign-built vessels in coastwise passenger service; it does not replace the vessel’s Certificate of Documentation or automatically establish the endorsements needed for its intended operation.

For owners using our National Documentation E-Portal, we provide an online way to access and submit the Coast Guard documentation forms we offer. Our portal is designed for vessel owners who want to complete documentation paperwork electronically rather than handling paper forms through a traditional process.

Our available documentation services include:

Initial Coast Guard vessel documentation
Renewal of a Certificate of Documentation
Transfer or exchange of documentation
Replacement of a Certificate of Documentation
Certified copies of documentation
Changes to vessel name or hailing port
Changes involving endorsements or trade indicators
Abstracts of title
Foreign vessel title search requests
MARAD Small Vessel Waiver applications
Document uploads

How Coastwise Trade Documentation Fits Into the Process

A foreign-built vessel that receives a Small Vessel Waiver may still need an appropriate Coastwise Trade Endorsement before being used for the qualifying passenger service. MARAD explains that owners should apply to the National Vessel Documentation Center for the applicable endorsement after receiving an approved waiver.

The Coast Guard documentation process is separate from the MARAD review. This distinction is important because approval of one federal requirement does not automatically satisfy another.

Owners should keep the documentation records associated with their vessels current, particularly when ownership, vessel information, or operating authority changes. Our portal provides access to the applicable Coast Guard forms that we offer for these circumstances.

What Applying for a MARAD Waiver Means for Your Documentation

The Small Vessel Waiver is intended to address a specific eligibility issue involving the U.S.-build requirement. It does not transform a foreign-built vessel into a U.S.-built vessel, and it does not eliminate the other federal requirements that may apply to commercial passenger operations.

For documentation purposes, owners should understand the difference between:

MARAD’s waiver determination
Coast Guard vessel documentation
A Coastwise Trade Endorsement
Passenger safety and operational requirements
Other federal requirements that may apply to the vessel

Keeping these matters separate can make it easier to identify which application or form is relevant to a particular documentation need.

Keeping Vessel Records Consistent

Accurate vessel information is important whenever federal documentation forms are submitted. Information concerning the vessel, owner, official number, identification information, and requested endorsement should correspond with the applicable documentation records.

Our portal offers several services that address changes to documented vessel records, including:

Vessel name changes
Hailing port changes
Transfer or exchange of documentation
Replacement documentation
Certified copies
Changes involving endorsements or trade indicators

The appropriate form depends on the specific transaction being requested. Our online forms allow owners to select the service that corresponds to their documentation needs.

A Foreign-Built Vessel Still Has Documentation Requirements

Receiving a MARAD waiver does not mean that an owner can simply begin commercial passenger operations without completing the other applicable federal requirements. The waiver addresses a particular statutory restriction, while Coast Guard documentation and operational requirements remain separate matters.

Owners of foreign-built vessels should therefore keep their MARAD paperwork and Coast Guard documentation records together as part of their vessel’s federal records.

For owners who need to complete the applicable paperwork, our National Documentation E-Portal provides access to the MARAD Small Vessel Waiver application and the Coast Guard documentation services we offer. Our online system is designed to make these forms available in one place, allowing vessel owners to complete the applicable paperwork electronically.