Coast Guard Documentation - Coast Guard documentation is a national form of vessel registration which is administered by the U.S. Coast Guard's National Vessel Documentation Center. It is one of the oldest functions of our Government, dating back to the 11th Act of the First Congress. Vessels that meet the required qualifications are issued a Certificate of Documentation that serves as evidence of ownership and entitles the vessel to engage in certain commercial activities. Although vessel documentation is optional for vessels that operate exclusively for recreational purposes, it is required for vessels that will engage in commercial activities within U.S. waters. Certificates of documentation for commercial vessels must be endorsed for the respective types of usage.
Reasons for Vessel Documentation - Coast Guard documentation is not required for pleasure or recreational usage, which includes bareboat charters. However, there are several reasons for which vessels are placed into Coast Guard documentation. First, a vessel can not engage in commercial activities within the United States unless it becomes documented and attains the respective trade endorsements. Second, marine lenders usually require vessel documentation in order to acquire a Preferred Mortgage which grants the ultimate contractual lien against any vessel. Third, owners who venture into international waters usually elect to document their vessels in order to attain certain protections afforded by the US flag. A certificate of documentation makes it easier for passage into foreign ports and is widely accepted by customs officials. Finally, some owners elect to document their vessel just for the prestige of owning a vessel which is said to carry the U.S. flag. From a visual perspective, Coast Guard documentation also precludes vessels from having to display state registration numbers. In summary, vessel documentation provides a more universally recognized certificate of ownership that is recognized worldwide and is supported by a detailed abstract reflecting all vessel ownership and lien transactions.
