USCG Vessel Documentation: The Certificate of Documentation
The Certificate of Documentation (COD) is the federal title to a vessel issued by the USCG National Vessel Documentation Center (NVDC). It identifies the vessel as part of the U.S. fleet and authorizes the commercial activities for which it is endorsed.
Eligibility for Documentation
Any vessel of five net tons or more that is wholly owned by a U.S. citizen (or entity that qualifies as a U.S. citizen under 46 U.S.C. 50501) may be documented. For corporations and limited liability companies, 75% of the ownership interest must be held by U.S. citizens and the CEO or president and chairman of the board must be U.S. citizens. A vessel of five net tons is roughly equivalent to a 25- to 28-foot vessel — net tonnage is a measure of internal volume, not weight.
Documentation is mandatory for vessels engaged in coastwise trade, fishing in U.S. waters, or foreign trade. Documentation is optional for recreational vessels but provides significant advantages including easier access to foreign ports, a federal title that is recognized internationally, and the ability to record a preferred ship mortgage.
Documentation Endorsements
Authorizes domestic trade between U.S. ports. Required for commercial carriage of passengers or goods between U.S. points.
Who needs it: Charter boats, water taxis, towing vessels, passenger ferries in domestic service
Key rule: Jones Act (46 U.S.C. 55102) requires U.S.-built, U.S.-owned, U.S.-crewed vessels for coastwise trade
Without this endorsement, a vessel cannot legally carry paying passengers between U.S. ports.
Authorizes fishing in U.S. waters and the Exclusive Economic Zone (EEZ). Required for commercial fishing vessels.
Who needs it: Commercial fishing vessels, fish processing vessels, fish tender vessels
Key rule: American Fisheries Act restricts certain fisheries to U.S.-flagged vessels with fishery endorsements
A vessel can hold both coastwise and fishery endorsements. Headboat fishing charters need coastwise.
Authorizes foreign trade. Documents vessel as belonging to the U.S. fleet for international voyages.
Who needs it: Ocean-going merchant vessels, offshore supply vessels, vessels in foreign trade
Key rule: Registry endorsement alone does NOT authorize coastwise trade — that requires a separate coastwise endorsement
A foreign-trade vessel with only a registry endorsement cannot carry cargo between U.S. ports.
For personal pleasure use only. Optional for recreational vessels five net tons or more.
Who needs it: Yachts, personal watercraft, recreational powerboats over five net tons
Key rule: A recreation-endorsed vessel may NOT engage in commercial trade. Using it for charters requires changing the endorsement.
Documentation gives recreational vessels easier access to foreign ports and USCG protection abroad.
Documentation vs. State Registration
| Aspect | USCG Documentation | State Registration |
|---|---|---|
| Governing Authority | Federal — USCG National Vessel Documentation Center (NVDC) | State — state boating authority (DMV, Fish & Wildlife, etc.) |
| Vessel Number Display | No state number on hull. COD number used for identification instead. | State-issued alphanumeric number displayed on forward hull in 3-inch block letters. |
| Eligibility | Vessels of 5 net tons or more; must be U.S. citizen-owned (75%+ for entities) | All motorized vessels and sailboats above a certain length; varies by state |
| Commercial Use | Required for coastwise trade and fisheries; provides legal framework for commercial operations | May not provide sufficient legal authority for commercial passenger operations |
| Mortgage Recording | Preferred ship mortgages recorded with NVDC — nationwide public notice | State title lien recording — only effective within that state |
| International Use | COD is internationally recognized as proof of U.S. nationality; facilitates foreign port entry | State registration not recognized abroad; may need separate documentation for foreign travel |
| Annual Renewal | Annual renewal required — COD expires December 31 each year if not renewed | Renewal period varies by state (1, 2, or 3 years depending on state) |
Annual Renewal Trap
The COD expires on December 31 of each year regardless of when it was issued. Operating a vessel with an expired COD is a violation — the vessel loses its legal authority to engage in commercial operations and its protection under U.S. documentation law. The NVDC sends renewal notices but failure to receive one is not a defense. Set a calendar reminder for October each year.
The Jones Act and Coastwise Trade Laws
The Jones Act (46 U.S.C. 55102) is the cornerstone of U.S. maritime protectionism. It restricts domestic waterborne commerce to vessels meeting four strict requirements. Every captain operating commercially in U.S. waters must understand this law.
The vessel must have been built in the United States. Foreign-built vessels, even if owned by U.S. citizens, cannot engage in coastwise trade.
Trap: A U.S. citizen buying a Canadian-built yacht cannot use it for paying charter passengers between U.S. ports.
At least 75% owned by U.S. citizens. For corporations, 75% of stock must be U.S. citizen-owned and the CEO and chairman must be citizens.
Trap: A limited partnership with foreign investors exceeding 25% ownership disqualifies the vessel for coastwise trade.
The vessel must hold a valid USCG Certificate of Documentation with a coastwise endorsement.
Trap: State registration alone — even on a U.S.-built, U.S.-owned vessel — does not satisfy the documentation requirement for coastwise trade.
The master and at least 75% of crew must be U.S. citizens or permanent resident aliens. The master must be a U.S. citizen.
Trap: Hiring a Canadian captain for a U.S. coastwise vessel violates the Jones Act crew requirement.
Passenger Vessel Services Act (PVSA) — 46 U.S.C. 55103
PVSA Rule (46 U.S.C. 55103)
Prohibits transporting passengers for hire between U.S. ports on non-coastwise-qualified vessels. A passenger for hire is any person who pays fare — including reciprocal arrangements.
The One-Passenger Exception
A vessel carrying only ONE passenger for hire is exempt from the PVSA. This exemption is narrow and does not apply when multiple passengers are carried.
Foreign Cruise Ship Exception
Foreign-flagged cruise ships may carry passengers between U.S. ports if the voyage includes a call at a foreign port (Canada, Mexico, or the Caribbean). This is the legal basis for most cruises departing from Miami or Seattle.
Penalty for PVSA Violation
The vessel owner is liable for a civil penalty of $684 per passenger transported illegally (amount adjusted periodically). This applies per passenger, making large-scale violations extremely costly.
Charter Fishing Boats
Headboats and party fishing vessels carrying paying passengers must have a coastwise endorsement and comply with the PVSA. The captain must hold an appropriate USCG license.
What Is a Passenger for Hire?
Under 46 U.S.C. 2101, a passenger for hire is a passenger for whom consideration is contributed as a condition of carriage, whether directly or indirectly. This includes:
- Cash payment for a charter or boat trip
- Trade or barter for passage (reciprocal arrangements count)
- Payment of any form of valuable consideration as a condition of being aboard
- Dues or fees paid to a club that entitles the member to passage
A vessel carrying even one passenger for hire must comply with the USCG licensing and equipment requirements for passenger-carrying vessels. The captain must hold an OUPV (Six-Pack) or Master license, and the vessel may require a Certificate of Inspection depending on the number of passengers.
Vessel Numbering, State Numbers, and Hull Identification Numbers
Every vessel operating on U.S. waters must be identified either by state registration numbers or by USCG documentation. The Hull Identification Number (HIN) is the vessel's permanent factory-assigned serial number — separate from either system.
State Registration Numbers
State-registered vessels receive an alphanumeric registration number in the formatFL 1234 AB(two-letter state prefix, up to four digits, two-letter suffix). The display requirements are strict:
- Letters must be plain block characters at least 3 inches high
- Color must contrast with the background — no camouflage effect
- Numbers must be displayed on both sides of the forward half of the hull
- A hyphen or space must separate the letters from the numbers
- The registration certificate must be kept aboard the vessel while in use
- Documented vessels are exempt from state numbering but may still require state titling
Hull Identification Number (HIN)
Format
12-character alphanumeric code: 3-letter Manufacturer ID, 5-character hull serial, 2-digit model year, 2-digit production year
Primary Location
Permanently affixed to the starboard side of the transom, within two inches of the top of the transom, gunwale, or hull/deck joint
Secondary Location
A second HIN is hidden in an unexposed location inside the hull to deter alteration or removal of the primary HIN
Regulatory Basis
Required under 33 CFR Part 181 on all boats manufactured after November 1, 1972. Dealers may not sell boats without a valid HIN.
Alteration
It is a federal crime under 46 U.S.C. 12122 to remove, alter, or falsify a vessel identification number. Penalty is up to $15,000 per violation.
HIN vs. Documentation Number
The HIN is a manufacturer-assigned permanent identifier. The documentation number is a USCG-assigned federal identifier for documented vessels. Both may appear on the same vessel.
Decoding the HIN Format
Bills of Sale and Vessel Title Transfer
Transferring ownership of a vessel — especially a documented vessel — requires specific legal formalities to protect both the buyer and seller and to ensure the public record accurately reflects ownership.
Bill of Sale — What It Must Contain
A bill of sale for a documented vessel must include: the vessel's name, official number, and hull identification number; the names and addresses of the seller and buyer; the purchase price; a warranty of clear title (or a disclosure of known encumbrances); the seller's signature; and acknowledgment before a notary public. For USCG purposes, the bill of sale must be on a USCG-approved form (CG-1340) or in the specific format required by 46 CFR Part 67.
USCG Recording (Documented Vessels)
Bills of sale for documented vessels are recorded with the NVDC. Recording creates constructive notice to the world of the ownership transfer. Unrecorded transfers may not be effective against third parties, including subsequent purchasers and lienholders.
State Titling (Non-Documented Vessels)
For state-registered vessels, title transfers through the state titling agency (similar to transferring a car title). Most states require a notarized bill of sale and application for new title. State title is the primary evidence of ownership for non-documented vessels.
Buyer Protection: Title Search Before Purchase
Before purchasing a documented vessel, a buyer should conduct a title search at the NVDC to confirm the seller's ownership, identify any recorded preferred ship mortgages or liens, and verify there are no outstanding encumbrances. Maritime liens for necessaries are NOT required to be recorded to be valid — they arise automatically. A title search reveals recorded mortgages but not unrecorded necessaries liens. A buyer who pays fair value and records the transfer promptly may still take the vessel subject to pre-existing necessaries liens.
Maritime Liens, Preferred Ship Mortgage, and Lien Priority
Maritime liens are unique to admiralty law — they arise automatically, require no recording, and travel with the vessel through changes of ownership. Understanding lien priority is essential for the USCG exam.
Maritime Lien Priority Order
Custodia Legis Expenses
Costs incurred by the court in arresting and maintaining the vessel during a maritime lawsuit. These expenses are paid first out of proceeds from the vessel sale.
Crew Wages
Wages owed to the master and crew. Federal law gives crew wages the highest priority among competing maritime liens because seafarers depend on wages for survival.
Salvage
Payment owed to a salvor who rescued the vessel from peril. Salvage awards incentivize rescuers to risk their own vessels to save others.
Tort Claims (Personal Injury and Death)
Damages arising from personal injury or death caused by vessel negligence or unseaworthiness. Rank ahead of mortgages and contract claims.
Preferred Ship Mortgage
A properly recorded preferred ship mortgage on a documented vessel. Ranks ahead of most necessaries liens but behind crew wages and tort claims.
Necessaries
Supplies, repairs, fuel, dock fees, and services furnished to the vessel on the credit of the vessel. Lowest priority among maritime liens — paid last from remaining proceeds.
What Are "Necessaries"?
Under the Commercial Instruments and Maritime Liens Act (CIMLA), necessaries are repairs, supplies, towage, use of dry dock, and any other necessaries to the vessel. The key elements for a valid necessaries lien are:
- The goods or services must have been furnished to the vessel (not to the owner personally)
- The supplier must have furnished them on the order of the owner, a person authorized by the owner, or certain agents recognized by law
- The supplier must have furnished them on the credit of the vessel
- The vessel must have been in need of the goods or services at the time
Common necessaries include: fuel, lubricants, provisions, ice, rope, supplies, repairs, dockage, pilotage, and towage. Necessaries liens have the lowest priority among maritime liens — they rank below crew wages, salvage, personal injury claims, and preferred ship mortgages. This means a fuel supplier who has not been paid may be out of luck if the vessel sells for less than the sum of higher-priority claims.
Preferred Ship Mortgage
A preferred ship mortgage is a mortgage on a documented vessel that has been properly recorded with the NVDC. To qualify as preferred (and receive the statutory priority over necessaries liens), the mortgage must:
Requirements
- Cover the whole of the vessel (not just part)
- Be executed by the owner(s) of record
- Be recorded with the NVDC before being deemed preferred
- Contain the amount of the mortgage and description of the vessel
Effect of Preferred Status
- Ranks ahead of all necessaries liens arising after recording
- Survives sale of the vessel — buyer takes vessel subject to the mortgage
- Lender can arrest the vessel in federal court for default
- Provides nationwide constructive notice of the lender's security interest
Marine Insurance: Hull, P&I, Cargo, and Pollution
Marine insurance is a specialized field that predates most other forms of insurance. Understanding the different coverages is essential for captains operating commercial vessels and is tested on the USCG license exam.
Hull and Machinery (H&M)
EXAMCovers
Physical damage to the vessel itself — hull, machinery, equipment. Covers collision damage, grounding, storm damage, fire, and sinking.
Does NOT Cover
Liability to third parties, crew injury, pollution
Key Term
Agreed Value vs. Actual Cash Value — agreed value pays the stated amount regardless of depreciation; ACV pays depreciated replacement cost.
Exam focus: Hull insurance covers the vessel itself. Not crew. Not third-party liability.
Protection and Indemnity (P&I)
EXAMCovers
Third-party liability — bodily injury and death of crew and passengers, cargo damage, collision liability (running-down clause), wreck removal, oil pollution.
Does NOT Cover
Physical damage to the insured vessel
Key Term
P&I clubs are mutual insurance associations that pool liability risks. Most commercial operators are P&I club members.
Exam focus: P&I covers what hull does NOT. Know that crew injury claims are under P&I, not hull.
Cargo Insurance
EXAMCovers
Loss or damage to goods being transported. The cargo owner (shipper or consignee) typically purchases this coverage.
Does NOT Cover
Vessel damage, crew liability
Key Term
All Risk vs. Named Perils — all risk covers any cause of loss not excluded; named perils covers only listed causes.
Exam focus: Carrier liability may be limited by bills of lading terms. COGSA limits cargo claims to $500 per package.
Pollution / OPA 90
EXAMCovers
Costs of oil spill cleanup, third-party damages from pollution discharge, natural resource damages.
Does NOT Cover
Hull damage from the incident
Key Term
OPA 90 requires financial responsibility certificates (Certificate of Financial Responsibility — COFR) for vessels over 300 gross tons or vessels certified for 300+ passengers.
Exam focus: Know COFR requirement and that vessel owners are strictly liable under OPA 90 up to the limit for spill costs.
Wreck Removal Insurance
EXAMCovers
Cost of removing a sunken or grounded vessel when ordered by authorities. Can be tens of millions of dollars for large vessels.
Does NOT Cover
Pollution cleanup costs (separate coverage)
Key Term
Nairobi Convention 2015 requires coastal states to compel owners to remove wrecks in their waters.
Exam focus: Wreck removal is often a separate endorsement or policy. P&I clubs typically cover this for members.
The Inchmaree Clause
The Inchmaree Clause (also called the Additional Perils Clause) extends hull coverage to damage caused by: negligence of the master or crew, negligence of repairers, bursting of boilers, breakage of shafts, and any latent defect in machinery or hull. It covers losses caused by the crew's operational negligence that would otherwise not be covered under the basic perils clause. This clause is named after the ship SS Inchmaree, involved in a famous 1887 British case.
Running Down Clause (RDC)
The Running Down Clause in hull policies covers the insured vessel's liability to another vessel for collision damage — typically covering 3/4 of the insured's liability for damaging another vessel. The remaining 1/4 is traditionally covered by the P&I club. This split coverage arrangement dates from 19th century marine underwriting practice and remains standard today. The RDC does NOT cover injury to persons, which is covered under P&I.
Vessel Inspection and Required Certificates
Inspected vessels must carry certificates issued by the USCG or authorized classification societies. These certificates verify that the vessel meets federal safety standards and is authorized to operate in its designated service.
Certificate of Inspection (COI)
USCGRequired for: All U.S. passenger vessels carrying more than six passengers for hire, and commercial vessels subject to inspection under 46 CFR Subchapter T, H, I, or K
Contains: Manning requirements, route and area of operation, maximum passengers, equipment requirements, maximum draft, expiration date
Exam tip: The COI must be posted in a conspicuous place on the vessel. Passengers may read the COI to verify they are on a legally operated vessel.
Load Line Certificate
USCG or recognized organizationRequired for: Vessels over 79 feet on international voyages; many domestic commercial vessels
Contains: Maximum loading marks (Plimsoll marks), minimum freeboard by zone and season, vessel stability information
Exam tip: The Plimsoll mark shows the deepest the vessel may legally be loaded. Loading below it is a violation and creates an unsafe condition.
International Ship Security Certificate (ISSC)
USCG or recognized security organizationRequired for: Vessels subject to SOLAS Chapter XI-2 and the ISPS Code — generally vessels 500 GT or more on international voyages
Contains: Verification that the ship security plan has been implemented, security level compliance
Exam tip: ISPS Code requires security plans, security assessments, and a designated Ship Security Officer on covered vessels.
SOLAS Safety Equipment Certificate
Flag state or recognized organizationRequired for: Vessels subject to SOLAS — generally passenger vessels or cargo vessels 500 GT or more on international voyages
Contains: Verification of life-saving appliances, fire safety systems, and radio equipment
Exam tip: SOLAS certificates come in a bundle: Safety Construction, Safety Equipment, and Safety Radio. All must be current for the vessel to operate internationally.
International Oil Pollution Prevention Certificate (IOPP)
Flag stateRequired for: Ships of 400 GT or more; oil tankers of 150 GT or more
Contains: Verification of oil discharge prevention equipment (oily water separator, Oil Record Book, etc.)
Exam tip: MARPOL Annex I governs oil discharges. The Oil Record Book must be maintained and available for PSC inspection for three years.
Certificate of Inspection — Display Requirement
The COI must be posted in a conspicuous place where it can be read by passengers and crew. Any person may ask to see the COI, and the operator is obligated to comply. The COI lists the maximum number of passengers, the route, the manning requirements, and the minimum safety equipment required. Operating in violation of the COI — for example, carrying more passengers than authorized, operating outside the designated route, or operating with fewer crew than required — is a serious federal violation that can result in civil penalties and suspension or revocation of the captain's license.
For a complete guide to vessel inspection requirements and Certificate of Inspection details, see our Vessel Inspection guide.
Limitation of Liability Act
The Limitation of Liability Act (46 U.S.C. 30501 et seq.) is one of the oldest maritime statutes in U.S. law, adapted from British law in 1851. It can allow a vessel owner to cap their liability for a maritime casualty at a fraction of the actual damages — or even to zero.
How the Act Works
When a maritime casualty occurs — fire, collision, sinking, passenger injury — the vessel owner may file a petition in federal district court to limit their liability. If the court grants limitation, all claimants share in a fund equal to the post-casualty value of the vessel plus any pending freight earned on that voyage. If the vessel sinks and has zero salvage value, the limitation fund can be zero, leaving injured claimants with nothing from the vessel owner.
The owner must prove they had no privity or knowledge of the negligence or condition that caused the loss. Privity and knowledge means the owner personally knew about or was responsible for the fault. An owner who hires a negligent captain may still limit liability if the owner had no personal knowledge of the captain's negligence. An owner who is also the captain cannot claim they lacked knowledge of their own acts.
Key Facts for the Exam
Filed in federal district court within six months of receiving written notice of a claim
Limits liability to post-casualty value of vessel plus pending freight earned on the voyage
Owner must prove they lacked privity and knowledge of the negligence
Owner-operators generally cannot limit their own personal negligence
Claimants can challenge the owner's right to limitation at a concursus hearing
Courts have allowed limitation even when the vessel had no post-casualty value — limiting liability to zero
The act applies to vessel owners, not just operators — bareboat charterers can also seek limitation
DOES NOT apply to claims under OPA 90 for oil pollution beyond the vessel limitation fund
Maintenance and Cure
Maintenance and cure is the maritime equivalent of workers' compensation, but broader and older. Any person who qualifies as a seaman — someone who spends at least 30% of their working time on a vessel in navigation as a member of the crew — is entitled to:
Maintenance
Daily per diem payment to cover food and lodging while unable to work — typically $35 to $75 per day, set by the court if disputed
Cure
All reasonable medical expenses until the seaman reaches Maximum Medical Improvement (MMI) — the point at which further treatment will not improve the condition
Unearned Wages
Wages for the remainder of the voyage during which the injury occurred — owed even if the seaman cannot work
Charter Law: Bareboat, Time Charter, and Voyage Charter
Charter agreements define the legal relationship between a vessel owner and the party using the vessel. The type of charter determines who controls the vessel, who employs the crew, and who bears liability for accidents.
Control
Charterer
Master and Crew
Charterer provides master and crew
Expenses
All operating expenses paid by charterer
Liability
Charterer liable as owner pro hac vice
Exam tip: Bareboat charterer is treated as the owner for most legal purposes. Owner retains underlying title.
Control
Split — owner controls operations; charterer controls commercial employment
Master and Crew
Owner provides master and crew
Expenses
Charterer pays fuel and port charges; owner pays crew and maintenance
Liability
Owner retains operational liability; charterer liable for cargo damage caused by loading errors
Exam tip: Master takes orders from the charterer on voyage routing but remains the owner's employee for safety decisions.
Control
Owner
Master and Crew
Owner provides master and crew
Expenses
Owner pays all vessel operating expenses; charterer pays freight (lump sum or per ton)
Liability
Owner responsible for vessel; charterer may be liable for delay damages (demurrage)
Exam tip: Demurrage is the fee the charterer pays when cargo operations take longer than the agreed laytime. Know this term.
Flag State Considerations in Charter Operations
The flag state is the country whose law governs the vessel — determined by the vessel's documentation, not the nationality of the charterer or the cargo. A U.S.-documented vessel remains subject to U.S. Coast Guard jurisdiction, manning requirements, and safety regulations regardless of who charters it or where it operates.
In international bareboat charter arrangements, it is sometimes possible to register the vessel in the charterer's flag state for the charter period (bareboat charter registration). This transfers some regulatory responsibilities to the charterer's flag state. However, the underlying title remains with the original owner.
For U.S. captains: a U.S.-documented vessel chartered to a foreign company does not become a foreign vessel. The U.S. captain is still subject to USCG licensing requirements, and the vessel must comply with U.S. Coast Guard regulations when operating in U.S. waters.
Port State Control: Inspections, Deficiencies, and Detention
Port State Control (PSC) is the inspection of foreign-flagged vessels in a host nation's ports to verify compliance with international maritime conventions. In the United States, PSC is conducted by the USCG. In the Paris MOU region, it is conducted by member state maritime authorities. Captains of vessels calling at international ports must be prepared for PSC inspections.
Legal Basis for PSC Inspections
Port state control derives its authority from international maritime conventions including SOLAS, MARPOL, STCW, the Load Line Convention, and COLREGS. When a vessel enters a port state's waters, it consents to inspection for compliance with these conventions, regardless of flag state. The vessel's flag state certificates establish presumptive compliance, but PSC officers can inspect to verify.
The U.S. USCG targets foreign vessels for inspection using a targeting matrix that assigns risk scores based on vessel age, flag state performance, vessel type, previous deficiency history, and time since last inspection. High-risk vessels are boarded on every arrival. Low-risk vessels may not be boarded for many port calls.
PSC Deficiency Categories and Detention Risk
| Deficiency Category | Severity | Detention Risk |
|---|---|---|
| ISM Code Deficiencies | High | Very High |
| Fire Safety | High | High |
| Life-Saving Appliances | High | High |
| Navigation Equipment | Medium | Medium to High depending on voyage area |
| Certificate Deficiencies | Medium | High — vessel cannot depart legally without valid certificates |
| MARPOL / Pollution | Medium | Medium — may trigger investigation and escalate to High |
| Manning | Low to Medium | Medium — may not detain but will be reported and tracked |
Detention — What Happens
A detained vessel may not leave port until deficiencies are corrected and a re-inspection is passed. The vessel owner is responsible for all costs of detention including port fees, crew wages during detention, and re-inspection fees. Detention is recorded in international databases (Paris MOU, Tokyo MOU, U.S. Targeting System) and increases the vessel's risk score for future port calls. A pattern of detentions can result in the vessel being banned from regional ports for a specified period.
Best Practice: Pre-Arrival Self-Inspection
Experienced captains conduct a self-inspection against the PSC checklist before arriving at any port where PSC inspection is possible. Check all certificates for validity, verify equipment is operational, confirm the Oil Record Book is current, verify manning meets Safe Manning Certificate requirements, and brief crew on their rights and obligations during a PSC inspection. Deficiencies found by the captain can be corrected; deficiencies found by a PSC officer go on the record.
USCG Exam High-Frequency Topics
These are the maritime law concepts that appear most often on USCG OUPV and Master license exams. Know them cold.
Jones Act: all four requirements must be met simultaneously
The four requirements for coastwise trade are conjunctive — U.S.-built AND U.S.-owned AND U.S.-documented AND U.S.-crewed. Satisfying three of four is not enough. A foreign-built vessel owned by U.S. citizens and documented with the USCG still cannot engage in coastwise trade because it fails the built-in-USA requirement.
Maritime lien priority is tested directly — memorize the order
The USCG exam tests lien priority. The order from highest to lowest is: (1) custodia legis, (2) crew wages, (3) salvage, (4) personal injury and death, (5) preferred ship mortgage, (6) necessaries. Crew wages beat everything except court expenses. A preferred ship mortgage beats a supply company that furnished fuel — even if the mortgage was recorded after the fuel was supplied.
Bareboat charter makes the charterer the owner pro hac vice
In a bareboat charter, the charterer steps into the shoes of the owner for the duration of the charter. The owner is NOT liable for torts committed while the vessel is under the charterer's exclusive control. This is the critical distinction between a bareboat and a time charter. In a time charter, the owner retains the master and crew — and retains liability for their negligent acts.
Maintenance and cure is owed regardless of fault
Maintenance and cure is owed to an injured seaman even if the seaman caused the accident. It is an absolute duty — the maritime equivalent of workers compensation — but broader. It continues until maximum medical improvement (MMI), not just until the seaman returns to work. Denying it when owed can result in punitive damages.
COD must be aboard the vessel at all times
The Certificate of Documentation must be kept aboard the documented vessel at all times and produced on demand to any USCG officer or other federal authority. A copy is not sufficient — the original must be carried. Failure to produce it can result in fines and interference with commercial operations at the port.
COFR is required for vessels over 300 gross tons
A Certificate of Financial Responsibility (COFR) under OPA 90 is required for any vessel over 300 gross tons using U.S. navigable waters, vessels of any size certified for 300+ passengers, and any vessel using the U.S. EEZ for offshore facility operations. The COFR must be aboard. No COFR means no operations.
Practice Questions with Explanations
These questions follow the style and difficulty of actual USCG written examination questions on vessel documentation and maritime law topics.
A vessel of eight net tons is used to carry passengers for hire between Miami and Key West. What documentation endorsement is required?
Answer
Coastwise endorsement
Explanation
Carrying passengers for hire between U.S. ports is coastwise trade. The vessel must hold a USCG Certificate of Documentation with a coastwise endorsement. A recreation endorsement would not authorize this commercial operation, and state registration alone is insufficient.
A Canadian-built yacht is owned 100% by U.S. citizens and holds a USCG coastwise endorsement. Can it carry paying passengers between San Diego and Los Angeles?
Answer
No — the Jones Act requires U.S.-built vessels for coastwise trade.
Explanation
The Jones Act (46 U.S.C. 55102) requires the vessel to be built in the United States. Foreign-built vessels are permanently disqualified from coastwise trade regardless of ownership, documentation, or crew nationality. The Canadian-built yacht fails this requirement.
A vessel is arrested by the court. The marshal incurs $5,000 in storage and maintenance costs. The vessel is sold for $80,000. The crew is owed $12,000 in wages. A supplier is owed $8,000 for fuel supplied last month. A bank holds a preferred ship mortgage of $50,000. In what order are these claims paid?
Answer
1. Court costs $5,000 | 2. Crew wages $12,000 | 3. Preferred mortgage $50,000 | 4. Fuel supplier $8,000
Explanation
Custodia legis expenses (court costs) are paid first. Crew wages rank second. The preferred ship mortgage ranks fifth in general priority but above necessaries like fuel. The fuel supplier (necessaries) is paid last. If the vessel sold for only $75,000, the fuel supplier would receive only $5,000.
Under what circumstances may the owner of a vessel limit their liability under the Limitation of Liability Act?
Answer
When the owner lacked privity or knowledge of the negligence or unseaworthiness that caused the loss.
Explanation
The Limitation Act permits limitation to the post-casualty value of the vessel plus pending freight when the owner had no privity or knowledge of the fault. If the owner was the negligent party (as often happens with owner-operators), limitation is unavailable because they cannot lack privity of their own acts.
A seaman is injured while carrying out his normal duties aboard a documented vessel. The injury was caused entirely by the seaman's own negligence. Is maintenance and cure owed?
Answer
Yes — maintenance and cure is owed regardless of fault.
Explanation
Maintenance and cure is an absolute duty. It does not matter how the injury occurred or whether the seaman was negligent. The seaman is entitled to daily maintenance (living expenses) and cure (medical treatment to maximum medical improvement). The seaman's own negligence may reduce a separate Jones Act negligence claim, but it does not affect maintenance and cure.
A shipowner charters their vessel to a vacation company on a bareboat charter. A passenger is injured on the vessel during the charter period. Who is liable?
Answer
The bareboat charterer, who is the owner pro hac vice during the charter period.
Explanation
In a bareboat charter, the charterer has complete possession and control of the vessel and provides their own master and crew. The charterer becomes the owner pro hac vice — owner for the occasion. The original owner is generally not liable for torts occurring during the bareboat charter period because they have surrendered possession and control.
What document must be carried aboard a vessel of 400 gross tons operating in U.S. waters to demonstrate compliance with OPA 90 financial responsibility requirements?
Answer
Certificate of Financial Responsibility (COFR)
Explanation
OPA 90 requires vessels over 300 gross tons using U.S. navigable waters, or any vessel certified for 300 or more passengers, to obtain and carry a Certificate of Financial Responsibility issued by the USCG. The COFR proves the owner has financial resources (insurance, surety bond, or self-insurance) to pay oil spill cleanup costs up to the statutory limit.
A vessel holds a USCG Certificate of Documentation with a registry endorsement only. The owner wants to carry cargo from New York to Boston. Is this permitted?
Answer
No — a registry endorsement does not authorize coastwise trade.
Explanation
A registry endorsement authorizes foreign trade only. To carry cargo or passengers between U.S. ports (coastwise trade), the vessel must have a coastwise endorsement. The vessel would need to apply to the NVDC to add a coastwise endorsement, which also requires meeting the Jones Act built-in-USA and citizenship requirements.
Key Statutes and Regulations to Know
The USCG exam tests knowledge of specific statutes and their provisions. Knowing the citation is less important than knowing what each law requires.
| Citation | Name |
|---|---|
| 46 U.S.C. 55102 | Jones Act (Coastwise Trade) |
| 46 U.S.C. 55103 | Passenger Vessel Services Act (PVSA) |
| 46 U.S.C. 31301 et seq. | Commercial Instruments and Maritime Liens Act (CIMLA) |
| 46 U.S.C. 30501 et seq. | Limitation of Liability Act |
| 33 U.S.C. 2701 et seq. | Oil Pollution Act of 1990 (OPA 90) |
| 46 U.S.C. 50501 | Citizenship Requirement for Documentation |
| 33 CFR Part 67 | Vessel Documentation Regulations |
| 46 CFR Part 67 | Vessel Documentation Procedures |
| 33 CFR Part 181 | Hull Identification Numbers |
| 46 U.S.C. 2101 | Definitions (Passenger for Hire) |
Pro Tips for the Documentation and Maritime Law Section
Experienced captains and USCG exam prep instructors share these insights on how to approach the documentation and maritime law questions on the exam.
The Jones Act is all-or-nothing
On exam questions about the Jones Act, watch for answer choices that satisfy three of the four requirements. The Jones Act requires all four. A vessel built in Canada but owned by Americans with a USCG coastwise endorsement and a U.S. crew STILL cannot engage in coastwise trade. Always verify all four requirements are satisfied.
Lien priority is tested as a ranking exercise
Expect to see questions presenting a vessel sale with multiple claimants and a sale price insufficient to pay everyone. You must rank them correctly. Memorize: custodia legis, crew wages, salvage, personal injury, preferred mortgage, necessaries. Write it out. Practice applying it with numbers.
Bareboat vs. time charter: think about who provides the crew
The fastest way to identify charter type on an exam question is to look at who provides the master and crew. Bareboat: charterer provides crew. Time and voyage charter: owner provides crew. If the owner keeps the crew, the owner keeps operational control and most operational liability.
Maintenance and cure: ignore the word fault
Any question that mentions a seaman being injured will try to test whether you know that M&C is owed regardless of fault. The answer is always yes for a qualified seaman injured in service of the vessel. Fault is irrelevant to M&C.
COD must be the original, aboard the vessel
A copy of the Certificate of Documentation is not sufficient. The original must be carried. If asked what happens when a USCG officer demands the COD and the captain can only produce a photocopy, the answer is a violation — not compliance.
COFR is tied to gross tonnage OR passenger count
The COFR requirement under OPA 90 triggers at 300 gross tons OR if the vessel is certified to carry 300 or more passengers — whichever comes first. A small fast ferry certified for 350 passengers but under 300 gross tons still needs a COFR.
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