[Title 46 CFR C]
[Code of Federal Regulations (annual edition) - October 1, 2006 Edition]
[Title 46 - SHIPPING]
[Chapter I - COAST GUARD, DEPARTMENT OF HOMELAND SECURITY (CONTINUED)]
[Subchapter G - DOCUMENTATION AND MEASUREMENT OF VESSELS]
[Part 67 - DOCUMENTATION OF VESSELS]
[Subpart C - Citizenship Requirements for Vessel Documentation]
[From the U.S. Government Publishing Office]


46SHIPPING22006-10-012006-10-01falseCSubpart CSHIPPINGCOAST GUARD, DEPARTMENT OF HOMELAND SECURITY (CONTINUED)DOCUMENTATION AND MEASUREMENT OF VESSELSDOCUMENTATION OF VESSELS
       Subpart C_Citizenship Requirements for Vessel Documentation



Sec. 67.30  Requirement for citizen owner.

    Certificates of Documentation may be issued under this part only to 
vessels which are wholly owned by United States citizens. Pursuant to 
extraordinary legislation at 46 U.S.C. app. 883-1 (Bowater Amendment) 
and 46 U.S.C. 12106(d) (Oil Pollution Act of 1990), Certificates of 
Documentation with limited endorsements may be issued in accordance with 
part 68 of this chapter to vessels owned by certain persons who are not 
citizens as defined in this part.



Sec. 67.31  Stock or equity interest requirements.

    (a) The stock or equity interest requirements for citizenship under 
this subpart encompass: Title to all classes of stock; title to voting 
stock; and ownership of equity. An otherwise qualifying corporation or 
partnership may fail to meet stock or equity interest requirements 
because: Stock is subject to trust or fiduciary obligations in favor of 
non-citizens; non-citizens exercise, directly or indirectly, voting 
power; or non-citizens, by any means, exercise control over the entity. 
The applicable stock or equity interest requirement is not met if the 
amount of stock subject to obligations in favor of non-citizens, non-
citizen voting power, or non-citizen control exceeds the percentage of 
the non-citizen interest permitted.
    (b) For the purpose of stock or equity interest requirements for 
citizenship under this subpart, control of non-fishing industry vessels 
includes an absolute right to: Direct corporate or partnership business; 
limit the actions of or replace the chief executive officer, a majority 
of the board of directors, or any general partner; direct the transfer 
or operations of any vessel owned by the corporation or partnership; or 
otherwise exercise authority over the business of the corporation or 
partnership. Control does not include the right to simply participate in 
these activities or the right to receive a financial return, e.g., 
interest or the equivalent of interest on a loan or other financing 
obligations.
    (c) For the purpose of this section, control of a fishing industry 
vessel means having:
    (1) The right to direct the business of the entity that owns the 
vessel;
    (2) The right to limit the actions of or to replace the chief 
executive officer, the majority of the board of directors, any general 
partner, or any person serving in a management capacity of the entity 
that owns the vessel;
    (3) The right to direct the transfer, the operation, or the manning 
of a vessel with a fishery endorsement.
    (d) For purposes of meeting the stock or equity interest 
requirements for citizenship under this subpart where title to a vessel 
is held by an entity comprised, in whole or in part, of other entities 
which are not individuals, each entity contributing to the stock or 
equity interest qualifications of the entity holding title must be a 
citizen eligible to document vessels in its own right with the trade 
endorsement sought.

[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1003, as amended by 
USCG-1999-6095, 65 FR 76575, Dec. 7, 2000; USCG-2004-18884, 69 FR 58346, 
Sept. 30, 2004]

[[Page 348]]



Sec. 67.33  Individual.

    An individual is a citizen if native-born, naturalized, or a 
derivative citizen of the United States, or otherwise qualifies as a 
United States citizen.



Sec. 67.35  Partnership.

    A partnership meets citizenship requirements if all its general 
partners are citizens, and:
    (a) For the purpose of obtaining a registry or recreational 
endorsement, at least 50 percent of the equity interest in the 
partnership is owned by citizens.
    (b) For the purpose of obtaining a fishery endorsement, at least 75 
percent of the equity interest in the partnership, at each tier of the 
partnership and in the aggregate, is owned by citizens.
    (c) For the purpose of obtaining a coastwise or Great Lakes 
endorsement or both, at least 75 percent of the equity interest in the 
partnership is owned by citizens or the vessel qualifies under Sec. 
67.20.

[CGD 94-008, 59 FR 49846, Sept. 30, 1994, as amended by USCG-1999-6095, 
65 FR 76575, Dec. 7, 2000; USCG-2001-8825, 69 FR 5401, Feb. 4, 2004]



Sec. 67.36  Trust.

    (a) For the purpose of obtaining a registry or recreational 
endorsement, a trust arrangement meets citizenship requirements if:
    (1) Each of its trustees is a citizen; and
    (2) Each beneficiary with an enforceable interest in the trust is a 
citizen.
    (b) For the purpose of obtaining a fishery endorsement, a trust 
arrangement meets citizenship requirements if:
    (1) It meets all the requirements of paragraph (a) of this section; 
and
    (2) At least 75 percent of the equity interest in the trust, at each 
tier of the trust and in the aggregate, is owned by citizens.
    (c) For the purpose of obtaining a coastwise or Great Lake 
endorsement or both, a trust arrangement meets citizenship requirements 
if:
    (1) It meets the requirements of paragraph (a) of this section and 
at least 75 percent of the equity interest in the trust is owned by 
citizens; or
    (2) It meets the requirements of Sec. 67.20.

[CGD 94-008, 59 FR 49846, Sept. 30, 1994, as amended by USCG-1999-6095, 
65 FR 76576, Dec. 7, 2000; USCG-2001-8825, 69 FR 5401, Feb. 4, 2004]



Sec. 67.37  Association or joint venture.

    (a) An association meets citizenship requirements if each of its 
members is a citizen.
    (b) A joint venture meets citizenship requirements if each of its 
members is a citizen.

[USCG-1999-6095, 65 FR 76576, Dec. 7, 2000]



Sec. 67.39  Corporation.

    (a) For the purpose of obtaining a registry or a recreational 
endorsement, a corporation meets citizenship requirements if:
    (1) It is incorporated under the laws of the United States or of a 
State;
    (2) Its chief executive officer, by whatever title, is a citizen;
    (3) Its chairman of the board of directors is a citizen; and
    (4) No more of its directors are non-citizens than a minority of the 
number necessary to constitute a quorum.
    (b) For the purpose of obtaining a fishery endorsement, a 
corporation meets citizenship requirements if:
    (1) It meets all the requirements of paragraph (a) of this section; 
and
    (2) At least 75 percent of the stock interest in the corporation, at 
each tier of the corporation and in the aggregate, is owned by citizens.
    (c) For the purpose of obtaining a coastwise or Great Lakes 
endorsement or both, a corporation meets citizenship requirements if:
    (1) It meets the requirements of paragraph (a) of this section and 
at least 75 percent of the stock interest in the corporation is owned by 
citizens; or
    (2) It meets the requirements of Sec. 67.20.
    (d) A corporation which does not meet the stock interest requirement 
of

[[Page 349]]

paragraph (c) of this section may qualify for limited coastwise trading 
privileges by meeting the requirements of part 68 of this chapter.

[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993, as amended by CGD 
94-008, 59 FR 49847, Sept. 30, 1994; USCG-1999-6095, 65 FR 76576, Dec. 
7, 2000; USCG-2001-8825, 69 FR 5401, Feb. 4, 2004]



Sec. 67.41  Governmental entity.

    A governmental entity is a citizen for the purpose of obtaining a 
vessel document if it is an entity of the Federal Government of the 
United States or of the government of a State as defined in Sec. 67.3.



Sec. 67.43  Evidence of citizenship.

    When received by the Coast Guard, a properly completed original 
Application for Initial Issue, Exchange, or Replacement of Certificate 
of Documentation; or Redocumentation (form CG-1258) establishes a 
rebuttable presumption that the applicant is a United States citizen.

[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65131, Dec. 
13, 1993]



Sec. 67.47  Requirement for Maritime Administration approval.

    (a) The following transactions, among others, require approval of 
the Maritime Administration in accordance with 46 CFR part 221:
    (1) Placement of the vessel under foreign registry;
    (2) Operation of the vessel under the authority of a foreign 
country; and
    (3) Sale or transfer of an interest in or control of the vessel from 
a citizen, as defined in section 2 of the Shipping Act, 1916 (46 U.S.C. 
app. 802), to a person not a citizen within the meaning of section 2 of 
that act.
    (b) A Certificate of Documentation may not be issued for a vessel 
which subsequent to the last issuance of a Certificate of Documentation 
has undergone any transaction listed in paragraph (a) of this section, 
even if the owner meets the citizenship requirements of this subpart, 
unless evidence is provided that the Maritime Administration approved 
the transaction.
    (c) The restriction imposed by paragraph (b) of this section does 
not apply to a vessel identified in Sec. 67.11(b).