Not all ships in the US are required to be federally documented. So what Vessels are Exempt of USCG documentation? If you own a ship and you don’t operate on the navigable waters of the US, then you’re not obliged to have your boat documented. Likewise, if you’re not going to use it in fisheries within the EEZ, then documentation is not necessary. These exempted vessels may still apply for a certification of documentation if the owners considered it to be necessary.
Even if your vessel is exempted, it must be registered in the state where you will primarily use it, regardless of what state you’re living. Every state in the US allows an out-of-state registration so it can cruise in the state’s waters for a period before the vessel’s owners are required to re-register in that state.
Most states in the US require boats to have title and state registration. However, if your boat is federally documented, it’s not required to be titled. Then again, documented vessels have an obligation to apply for a validation decal in some states where the vessel will be primarily used.
Federal documentation does not replace state registration. Owners of documented boats are not exempted from complying with the state laws. As indicated earlier, most states in the US require documented vessels that are kept in their state waters for a particular period to register. They also need to obtain a state sticker. It will indicate that the all state taxes are paid. However, a federally documented vessel may not need to carry state numbers.
Lending Institutions Prefer Federal Documentation
If you’re going to borrow money to help you obtain a vessel, the lending institution may require you to obtain a certification of documentation. The reason for this is that it is the only way to get a preferred ship’s mortgage, which is a type of mortgage. For a boat loan, this lease allows recording of a lien, not against the person or borrower but the ship.
USCG Documentation is also vital if you are going to cruise in foreign countries. That’s why some boat owners that are exempted from getting a certification are still applying for it as they plan to sail in international waters.
But documentation is only given to owners who are US citizen. To receive the endorsement of Coast Guard, the boat must be American-built.
To know more about vessel exemption and how you can apply for a certification, please call Vesseldocumentation.us at (866) 981-8783.