[Federal Register Volume 59, Number 87 (Friday, May 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10853]
[[Page Unknown]]
[Federal Register: May 6, 1994]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Coast Guard
33 CFR Part 181
[CGD 92-065]
RIN 2115-AE37
Expanded Hull Identification Number and New Requirements for
Certificates of Origin
AGENCY: Coast Guard, DOT.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Coast Guard proposes amending the regulations concerning
vessel Hull Identification Numbers (HIN) and establishing new
regulations requiring Certificates of Origin for new vessels offered
for sale in the United States. The Coast Guard is proposing the
regulations in order to provide additional information identifying
vessels and establishing evidence of vessel ownership to aid in marine
investigations, deter theft, and provide a more useful vessel
identifier for the purposes of developing the vessel identification
system, as required by legislation. The Coast Guard also proposes to
make several editorial corrections to its HIN regulations.
DATES: Comments must be received on or before September 6, 1994.
ADDRESSES: Comments may be mailed to the Executive Secretary, Marine
Safety Council (G-LRA/3406) (CGD 92-065), U.S. Coast Guard
Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, or may
be delivered to room 3406 at the above address between 8 a.m. and 3
p.m., Monday through Friday, except Federal holidays. The telephone
number is (202) 267-1477. Comments on collection of information
requirements must be mailed also to the Office of Information and
Regulatory Affairs, Office of Management and Budget, 725 17th Street,
NW., Washington, DC 20503, Attn: Desk Officer, U.S. Coast Guard.
The Executive Secretary maintains the public docket for this
rulemaking. Comments will become part of this docket and will be
available for inspection or copying at room 3406, U.S. Coast Guard
Headquarters.
A copy of the material listed in ``Incorporation by Reference'' of
this preamble is available for inspection at room 1505, U.S. Coast
Guard Headquarters.
FOR FURTHER INFORMATION CONTACT:
Mr. Alston Colihan, Auxiliary, Boating, and Consumer Affairs Division,
(202) 267-0981.
SUPPLEMENTARY INFORMATION:
Request for Comments
The Coast Guard encourages interested persons to participate in
this rulemaking by submitting written data, views or arguments. Persons
submitting comments should include their name and address, identify
this rulemaking (CGD 92-065) and the specific section of this proposal
to which each comment applies, and give a reason for each comment. The
Coast Guard requests that all comments and attachments be submitted in
an unbound format suitable for copying and electronic filing. If not
practical, a second copy of any bound materials is requested. Persons
wanting acknowledgement of receipt of comments should enclose a
stamped, self-addressed postcard or envelope.
The Coast Guard will consider all comments received during the
comment period. It may change this proposal in view of the comments.
The Coast Guard plans no public hearing. Persons may request a
public hearing by writing to the Marine Safety Council at the address
under ADDRESSES. If it determines that the opportunity for oral
presentations will aid this rulemaking, the Coast Guard will hold a
public hearing at a time and place announced by a later notice in the
Federal Register.
Drafting Information
The principal persons involved in drafting this document are Mr.
Alston Colihan, Project Manager, and Helen Boutrous, Project Counsel,
Office of Chief Counsel.
Background and Purpose
The Secretary of Transportation is required to establish the Vessel
Identification System (VIS) (46 U.S.C. chapters 125, 131 & 313) for use
by the public and law enforcement officials. The Secretary has
delegated to the Commandant, U.S. Coast Guard, the authority to
implement VIS. VIS will provide a nationwide pool of vessel and vessel
owner information that will help in identification and recovery of
stolen vessels and deter vessel theft. This rulemaking would aid in the
development of VIS by expanding the existing 12 character HIN to
include certain vessel-specific information and thereby create a more
useful vessel identification number. Further, requiring vessel
manufacturers and importers to provide a Certificate of Origin with
each vessel produced or imported for the purposes of sale would ensure
the availability of documentation certifying this information and
establishing a chain of ownership.
Discussion of Proposed Amendments
Investigations of lost and stolen vessels depend in large part on
the proper authorities' ability to identify a vessel and establish a
chain of ownership. The proposed regulations would aid in this pursuit
by expanding the current 12 character HIN to include detailed
information about each vessel. In addition, a check digit in the
expanded HIN would make alteration of an HIN more difficult thereby
helping to prevent fraud in the sale of vessels. The proposed
regulations would also require that vessel manufacturers provide a
Certificate of Origin certifying the truth about certain information in
the HIN and for use as the first document in the paper trail
establishing proof of vessel ownership.
Removal of the definition for ``model year'' would clear up a
drafting error which has existed since the last time the HIN
regulations were amended in 1984. Finally, removal of the references to
``State Boating Law Administrator'' in 33 CFR 181.31(c) would allow
States which use their Department of Motor Vehicles as vessel numbering
and titling authorities to issue HINs to individuals building their own
vessels.
The following discusses the proposed changes to 33 CFR part 181:
(a) ``Model Year'' Definition
The definition of ``model year'' would be removed from Sec. 181.3.
Up until 1984 the regulations allowed for two methods of indicating the
date of manufacture in the last four characters of the 12 character
HIN. When those two formats were devised, it was the Coast Guard's
understanding that the new model year would not commence prior to
August. Some manufacturers complained that they wanted to vary the
introduction date of the new model year from year to year, but that
they were prevented from doing so by the HIN regulations which defines
model year as the period beginning August 1 of any year and ending on
July 31 of the following year. The Coast Guard amended the HIN
regulations in 1984 to give vessel manufacturers the freedom to
designate model year in the HIN as they requested. The Coast Guard
amended Sec. 181.25(a) to require characters 11 and 12 to indicate the
model year using the last two characters of the model year such as
``84'' for 1984. However, due to a drafting error, the Coast Guard
failed to delete the outdated and superfluous definition of ``model
year.'' The proposed amendments would remove the definition of ``model
year'' from part 181.
(b) Incorporation by Reference
The following material would be incorporated by reference in
Sec. 181.4:
International Organization for Standardization (ISO) Standard 3166
``Codes for the representation of names of countries.'' International
Organization for Standardization (ISO) Standard 1073/I-1976
``Alphanumeric character sets for optical recognition--Part I:
Character Set OCR-A--Shapes and dimensions of the printed image.''
Copies of the material are available for inspection where indicated
under ADDRESSES. Copies of the material are available at the addresses
in Sec. 181.4. Before publishing a final rule, the Coast Guard will
submit this material to the Director of the Federal Register for
approval of the incorporations by reference.
ISO Standard 3166 contains two character alphabetic codes which
would be used to indicate the ``country code'' in the expanded HIN. ISO
Standard 1073/I-1976 prescribes shapes and sizes of alphanumeric
characters for optical character recognition (OCR) systems, which means
that the characters are both human and machine readable.
(c) Nineteen Character Hull Identification Number
The existing Hull Identification Number (HIN) is a unique 12
character serial number required on each recreational vessel
manufactured in or imported into the United States for the purposes of
sale. The Coast Guard assigns the first three characters, a
Manufacturer Identification Code (MIC) which identifies the
manufacturer or importer; characters four through eight are a
manufacturer serial number; characters nine and ten indicate date of
certification for vessels subject to safety standards or the date of
manufacture for vessels not subject to standards; and characters eleven
and twelve indicate the model year.
There are two serious problems involving the current 12 character
HIN format. Thieves can alter an HIN and ``launder'' a stolen vessel in
States with ineffective titling and registration programs. Similarly,
the last four characters in many HINs are fraudulently altered as a
means of misrepresenting vessels as ``newer.''
As early as May 1987, the National Auto Theft Bureau (NATB), which
is supported by more than 600 casualty insurance companies, recommended
that the Coast Guard adopt a 17 character HIN format (similar to the
format required for the Vehicle Identification Number [VIN] on an
automobile) as a means of detecting and deterring vessel theft. Each
VIN contains certain characters which describe features such as body
style and engine type which are specific to the automobile to which the
VIN is assigned. A VIN also contains a check digit which assures the
integrity of the other characters in a VIN. According to the NATB and
officials of the National Association of State Boating Law
Administrators (NASBLA), the additional HIN characters would lead to
increased recovery of stolen vessels and more successful enforcement
efforts, thereby deterring would-be thieves.
During meetings with the International Standards Organization (ISO)
some ISO member countries expressed a desire for the Coast Guard to
include a two character country of MIC registration code as part of the
expanded HIN format to distinguish between MICs issued by different
foreign countries. The Coast Guard agrees that including the two
character country of MIC registration code in the proposed HIN would be
appropriate.
The proposed expanded HIN would consists of 19 characters. The
additional seven characters would indicate country of MIC registration,
length, hull material, principal means of propulsion, vessel type and a
check digit. The expanded HIN with its check digit would reflect
additional information useful to law enforcement authorities
investigating vessel thefts and provide a useful means of identifying
vessels in VIS.
Section 181.25 would be revised to require that each of the Hull
Identification Numbers prescribed by Sec. 181.23 must consist of 19
characters uninterrupted by slashes, hyphens or spaces:
(1) Characters one and two would be the two character alphabetic
``country code'' from ISO Standard 3166. The country code for
Manufacturer ID Codes the Coast Guard assigns in the United States, for
example, would be ``US.''
(2) Characters three through five would be the existing
manufacturer identification code the Coast Guard assigns to the vessel
manufacturer in accordance with Sec. 181.31(a).
(3) Characters six through ten would be the serial number the
manufacturer currently assigns in accordance with Sec. 181.25(b).
(4) Characters eleven and twelve would indicate date of
certification for vessels subject to safety standards or the date of
manufacture for vessels not subject to standards in accordance with the
existing format specified in Sec. 181.25(c).
(5) Characters thirteen and fourteen would indicate the model year
in accordance with the existing format specified in Sec. 181.25(d).
(6) The fifteenth character would indicate overall length of the
vessel using a corresponding letter of the English alphabet. The
character, ``A,'' would indicate a vessel with a hull length of less
than six feet; ``B'' would indicate a vessel with a hull length of six
feet to 10 feet, 11 inches; ``C'' would indicate 11 feet; ``D'' would
indicate 12 feed, and so on. The character, ``Z'', would indicate a
vessel with a hull length of more than 31 feet. Inches would not be
included in the measurement of length, therefore, 15 feet, 10 inches is
15 feet and 16 feet, 2 inches is 16 feet.
(7) The sixteen character would indicate hull material using a
corresponding Arabic numeral. Arabic numerals one through eight would
indicate aluminum, ferrocement, fiber reinforced plastic (FRP),
flexible fabric, foam, plastic, steel and wood, respectively.
(8) The seventeenth character would indicate the principal means of
propulsion of the vessel using a corresponding Arabic numeral. Arabic
numerals one through nine would indicate air propeller, bracket mounted
outboard, inboard, inboard jet, inboard/outdrive, nonpowered, outboard,
sail and sail with inboard auxiliary, respectively. Footnotes to a
table in this section would distinguish between which Arabic numerals
to use to indicate nonpowered vessels, sailboats and sailboats with
auxiliary power.
(9) The eighteenth character would indicate the type of vessel
using a corresponding Arabic numeral. Arabic numerals one through nine
would indicate air cushion vehicle; canoe, kayak, sailboard or
surfboard; inflatable; monohull/cabin configuration; monohull/closed
bow; monohull/open bow; multihull/cabin or closed bow; multihull/open
deck; and personal watercraft, respectively. Footnotes to a table in
this section would distinguish between which Arabic numerals to use to
indicate the vessel types described above.
(10) The nineteenth character would be a check digit determined by
performing certain arithmetic calculations involving the previous 18
characters. Characters consisting of letters of the English alphabet
would be converted to corresponding numerical values. A diagram in the
section would show how the calculations should be performed. The Coast
Guard has developed a computer program which calculates the check digit
and is available to any vessel manufacturer with a computer. The Coast
Guard has also developed several work sheets to help determine the HIN
for a vessel which are also available.
(d) Reference to State Boating Law Administrator
Section 181.31 prescribes the regulations on the assignment of a
Manufacturer Identification Code (MIC) to each recreational vessel
manufacturer and importer. According to Sec. 181.31(c), persons who are
building vessels for their own use and not for the purposes of sale,
must obtain an entire Hull Identification Number from the State Boating
Law Administrator of the State where the vessel will be principally
used, in lieu of applying for a MIC. A number of the States use their
Department of Motor Vehicles (DMV) for numbering and titling of vessels
and the DMV would issue a State HIN. Under the proposed amendments,
references to ``State Boating Law Administrator'' would be removed from
the section and the words ``the issuing authority of the State'' would
be added in their place.
(e) Certificate of Origin
The Secretary is required to include information assisting law
enforcement officials in VIS (46 U.S.C. 12501(b)(6)). A Certificate of
Origin (COO) is a document issued by a product's manufacturer
certifying to the truth of certain facts. Many States require vessel
owners to provide a COO before they will issue a title or register and
number a vessel. Thus, a COO is usually the first document in the paper
trail identifying a vessel and establishing proof of ownership.
Unfortunately, many vessel manufacturers do not issue COOs for vessels
they manufacture or they issue COOs which many States consider
unacceptable.
A purchaser's possession of a standardized COO for a vessel would
ensure that documentation of the vessel's chain of ownership is
established. This would aid law enforcement investigations by providing
a means to demonstrate vessel ownership as well as providing a means to
certify vessel information that could be used in the development of
VIS.
Under the proposed amendments the Coast Guard would add a new
Subpart D--``Certificates of Origin for Boats.'' The proposed
amendments would require manufactures and U.S. importers of foreign-
built vessels to provide a completed COO with each vessel manufactured
or imported. The issuing authorities in the States would be given the
option of issuing COOs to individuals building their own vessels or
exempting them from the requirement altogether.
Discussion of Proposed Form
The Coast Guard is considering the development of a standardized
COO form. For the reader's convenience, a prototype of a proposed form
is reproduced in appendix A. This form should be considered in
conjunction with the proposed regulations. Comments or suggestions
pertaining to the format or content will be welcomed. Also, the Coast
Guard specifically seeks comments on the most cost efficient manner to
create and distribute the forms. Any proposed form will be submitted to
the Office of Management and Budget for approval prior to publication
of the final rule.
Discussion of Requirement for Certificate of Origin
A COO furnished with a recreational vessel in accordance with
Sec. 181.43 would:
(a) Be signed by or on behalf of the vessel manufacturer; and
(b) Recite the following:
(1) The vessel's 19 character hull identification number assigned
in accordance with Sec. 181.25;
(2) The date on which the COO is issued;
(3) The model name or numerical designation for the vessel;
(4) The length of the vessel in feet and inches;
(5) The beam of the vessel in feet and inches;
(6) Whether the vessel is for commercial or recreational use;
(7) The name and address of the dealer or individual to whom the
vessel is first transferred; and
(8) The place the vessel is constructed (plant location).
Solicitation of Views
The Coast Guard is particularly interested in receiving comments on
the following issues:
(a) The majority of the recreational vessel manufacturers are small
volume builders who lack computers and cannot use a computer program
developed by the Coast Guard. These manufacturers may have a difficult
time determining the check digit in the proposed 19 character Hull
Identification Number. When using simple arithmetic, those calculations
may take as long as 15 minutes per vessel. Is 15 minutes a reasonable
estimate for performing the calculation?
(b) Should the Coast Guard consider expecting certain classes of
low cost vessels from the 19 character HIN, or do States which number
all watercraft insist on universal application of this requirement?
(c) Are there other methods for calculation of the check digit
which are not as time consuming and will still assure the integrity of
the other characters in an HIN?
(d) The proposed regulations will require a COO for each new vessel
manufactured or imported. Since a COO is unique to the vessel to which
it is assigned, there may be some additional requirements associated
with ensuring that the proper COO accompanies each vessel, particularly
for importers of inflatables and similar, high volume, low cost vessels
which are shipped in bulk containers. As a result, the COO requirement
in the proposed regulations may require change in the manner in which
small, high volume vessels are packaged for shipment. Should the Coast
Guard consider excepting from the COO requirement certain classes of
low cost vessels, or vessels involving special problems associated with
the manner in which they are shipped?
(e) Do the States which number all watercraft insist on universal
application of the COO requirement?
(f) A prototype of a proposed COO form is reproduced in appendix A.
The Coast Guard proposes issuing a COO template to all boat
manufactures and importers which they could copy to make COO forms for
each boat. The Coast Guard would partially complete the COO templates
with each manufacturer (or importer) name and address and the first
five characters of the HIN as a means for minimizing information
collection burdens.
However, the Coast Guard is seeking comments on whether the
proposed COO contains sufficient security features and information to
make it an effective document. The NASBLA Numbering and Titling
Committee has recommended, through a mailing to the Coast Guard, that
the COO form be machine readable utilizing the OCR-A font which
provides the criteria for character set and print quality for optical
character recognition; be uniform in all jurisdictions; and conform to
the following format, standards, security, and specifications:
(1) Have an engraved border produced from banknote engraved
artwork;
(2) Feature a prismatic, i.e., rainbow printing which is used as a
deterrent to color copying, and/or a copy void pantograph, i.e., the
word ``void'' appears when the document is copied;
(3) Be printed using erasable fluorescent background inks which
fluoresce under ultraviolet light and react to any attempt to erase
information;
(4) Include a background security design consisting of a
repetitious pattern which hinders counterfeiting efforts;
(5) Be printed on sensitized security paper that is reactive to
chemicals commonly used to alter documents;
(6) Be printed on non optical brightener paper without added
optical brighteners which will not fluoresce under ultraviolet light;
(7) Include a microline--a line of small alpha characters in
capital letters which requires a magnifying glass to read;
(8) Bear a pre-printed consecutive number for control purposes;
(9) Consist of complex colors which are developed by using a
mixture of two or more of the primary colors (red, yellow and blue) and
black if required; and
(10) Contain a security thread with or without a watermark, and/or
an intaglio print with or without a latent image, and/or a security
laminate.
The Coast Guard's preliminary investigations indicate that due to
the high cost of creating forms meeting the NASBLA suggested
requirements, the Coast Guard could not absorb the cost of printing COO
forms meeting the NASBLA security features. The Coast Guard does not
have the authority to charge manufacturers to reimburse the Coast Guard
for its expenditures on COO forms. Therefore, if the Coast Guard were
to adopt the NASBLA recommended security features, manufacturers would
be responsible for creating or purchasing the forms on their own.
Are there interested parties who believe the NASBLA recommended
security features would be appropriate for a State issued certificate
of title, but are excessive for a manufacturer issued certificate of
origin?
Some manufacturers build thousands of vessels annually, while
others may build as few as a single vessel annually. What do printers
estimate would be the costs to various volume boat manufacturers for
creating and printing forms meeting the NASBLA recommended security
features?
If the Coast Guard were able to obtain authorized funding, what
would be the cost to the Coast Guard for creating, printing, partially
completing, and distributing forms meeting the NASBLA recommended
security features to various volume boat manufacturers?
Once the contents and security features of a finalized COO form are
developed, based upon comments received, what are the most equitable
and cost-efficient methods for creating, printing, and distributing COO
forms to boat manufacturers?
(g) The proposed Sec. 181.47 addresses the subject of duplicate COO
forms.
(1) Who should be able to apply for a duplicate COO form from a
boat manufacturer?
(2) What information should a duplicate COO contain?
(3) Should an affidavit or other type of proof be required as a
condition to obtaining a duplicate COO form?
(4) If a duplicate COO must contain the same information as an
original, should the regulations require the manufacturer to retain a
copy of each original COO form? For how long?
Regulatory Assessment
This proposal is not a significant regulatory action under
Executive Order 12866, and has not been reviewed by the Office of
Management and Budget. It is also not significant under the
``Department of Transportation Regulatory Policies and Procedures'' (44
FR 11040; February 26, 1979). The Coast Guard expects the economic
impact of this proposal to be so minimal that a Regulatory Assessment
is unnecessary.
This project would benefit law enforcement officers by aiding in
deterrence and detection of vessel fraud and theft. An estimated
2,000,000 recreational vessels are manufactured or imported annual.
Issuing authorities in the States issue an estimated 17,000 HINs to
individuals building their own vessels annually. This means an
estimated 2,017,000 HINs are affixed annually. The estimated average
cost for the affixing the existing 12 character HIN is $.50 per vessel.
The estimated cost of expansion to a 19 character format is an
additional $.25 per vessel, for a total cost of approximately $.75 per
vessel.
The Coast Guard is soliciting specific comments on the estimated
costs for COOs.
The Coast Guard considered three alternatives in developing the
proposed rulemaking.
(a) Take no action. If the Coast Guard fails to take any action,
the numbers of vessels stolen and the incidence of vessel fraud
involving altered HINs will continue to increase. In addition, the
development of VIS requires a means for identification of each vessel
and proof of vessel ownership. Use of the 19 character HIN and a COO
requirement appear to be the best way to accomplish those requirements.
Many of the States and many law enforcement agencies support the
proposal for a 19 character HIN and NASBLA, the National Boating Safety
Advisory Council (NBSAC) and the National Association of Marine
Investigators (NAMI), all support Coast Guard adoption of the 19
character HIN. The Coast Guard has also received numerous complaints
from owners who are unable to register their vessels because they do
not have a COO.
(b) Initiate a rulemaking to:
(1) Amend the HIN regulations in 33 CFR part 181 to require
additional information about the vessel to be reflected in the HIN and
add a requirement for a check digit to aid in the prevention of fraud,
thereby expanding the current HIN format from 12 to 19 characters; and
(2) Require manufacturers and importers to complete a Builder's
Certification.
Expanding the HIN to 19 characters would provide the best means of
developing a vessel identifier for VIS and help to discourage and
detect alterations of HINs through inclusion of the check digit. While
requiring all vessel manufacturers to provide a completed Builder's
Certification would have the advantage of utilizing one form for all
vessels whether documented, numbered or titled, it would prove overly
burdensome to many manufacturers and importers.
The Builder's Certification is designed for use by those
documenting a vessel under 46 CFR part 67. Obtaining endorsements for
documented vessels requires detailed information about the vessel,
including the country in which the vessel and its major components were
manufactured. Since a COO does not satisfy these documentation
information requirements, it is not accepted as evidence of ownership
for the purposes of documentation. The Builder's Certification
satisfies documentation requirements, but would require information
well beyond what is needed for VIS purposes and it would be overly
burdensome to require manufacturers and importers to complete a
Builder's Certification for every recreational vessel. The estimated
reporting burden for the Builder's Certification is 30 minutes, while
the estimated burden to complete the COO is five minutes. Therefore,
requiring a Builder's Certification is not the preferred alternative
for establishing the chain of ownership for the purposes of VIS.
(c) Initiate a rulemaking to:
(1) Amend the HIN regulations in 33 CFR part 181 to require
additional information about the vessel to be reflected in the HIN and
add a requirement for a check digit to aid in the prevention of fraud,
thereby expanding the current HIN format from 12 to 19 characters; and
(2) Require manufacturers and importers to provide a completed COO
for each recreational vessel they manufacture or import. This is the
preferred alternative.
This alternative would provide VIS with the preferred 19 character
HIN as well as the best method of establishing the chain of ownership
for VIS purposes through the COO requirement. The COO requirement would
provide all the information necessary for VIS and would take just five
minutes to complete.
Small Entities
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the
Coast Guard must consider whether this proposal will have a significant
economic impact on a substantial number of small entities. ``Small
entities'' include independently owned and operated small business that
are not dominant in their field and that otherwise qualify as ``small
business concerns'' under section 3 of the Small Business Act (15
U.S.C. 632).
The proposed regulations will apply to the following small
entities: Small manufacturers building vessels, small importers
importing vessels and State issuing authorities.
There are reporting requirements associated with an expanded HIN
that could be more burdensome to small entities than to the larger
volume manufacturers, especially in the calculation of the check digit.
Eighty percent of the new recreational vessels manufactured annually
are build by 20 percent of the industry. These are large companies with
engineering departments that are equipped with computers and the
expertise to understand and properly encode the additional characters
and the check digit. The majority of the recreational vessel
manufacturers, however, are small volume builders who may have a more
difficult time implementing the regulations and making the necessary
calculations to determine the check digit. When using simple
arithmetic, those calculations may take as long as 15 minutes per
vessel. The Coast Guard has developed a computer program which
calculates the check digit which is available to any vessel
manufacturer with a computer. The Coast Guard has also developed
several work sheets to help determine the HIN for a vessel and the
worksheets are also available. Therefore, preliminary analysis
indicates that a 19 character HIN will not have a significant economic
impact on a substantial number of small entities.
The requirement for a COO may also result in additional
requirements for small entities. Since a COO is unique to the vessel to
which it is assigned, there may be some additional requirements
associated with assuring that the proper COO accompanies each vessel,
particularly for importers of inflatables and similar, high volume, low
cost vessels which are shipped in bulk containers. As a result, the COO
requirement in the proposed regulations may require changes in the
manner in which small, high volume vessels are packaged for shipment.
However, a preliminary analysis indicates that the COO requirement will
not result in a significant impact on a substantial number of small
entities.
Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that
this proposal, if adopted, will not have a significant economic impact
on a substantial number of small entities. If, however, you think that
your business or organization qualifies as a small entity and that this
proposal will have a significant economic impact on your business or
organization, please submit a comment (see ADDRESSES) explaining why
you think it qualifies and in what way and to what degree this proposal
will economically affect it.
Collection of Information
Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the
Office of Management and Budget (OMB) reviews each proposed rule that
contains a collection of information requirement to determine whether
the practical value of the information is worth the burden imposed by
its collection. Collection of information requirements include
reporting, recordkeeping, notification, labeling and other, similar
requirements.
This proposal contains collection of information requirements in
the following sections: 181.23, 181.31 and 181.43. The following
particulars apply:
DOT: 2115.
OMB CONTROL No.: 2115-XXXX.
Administration: U.S. Coast Guard
Title: Expanded Hull Identification Number and New Requirements for
Certificates of Origin.
Need for Information: The information collection requirements
contained in this proposal are necessary to meet statutory requirements
of 46 U.S.C. chapter 125 regarding the establishment of a national
vessel identification system for recreational vessel owners.
Proposed Use of Information: To be used by State agencies, local
law enforcement, the Coast Guard and other Federal agencies and be
available, on a fee basis, to private businesses involved in the
maritime industry (such as banking firms and insurance companies) as a
centralized data base regarding recreational vessels.
Burden Estimate: See discussion below.
Respondents: Boat manufacturers and importers (4,000), individuals
building their own vessels (17,000) and issuing authorities in States
and territories of the United States (56).
Forms: Hull Identification Number and Certificate of Origin
Average Burden Hours Per Respondent: Variable. There is no
practical way to estimate the burden per respondent for the Hull
Identification Number regulations. The respondents are vessel
manufacturers and importers and State vessel registration and numbering
authorities and members of the public who build their own vessels. Some
manufacturers produce thousands of vessels annually, while others may
produce only a single vessel annually.
There are approximately 4,000 U.S. manufacturers and importers of
recreational vessels. They manufacture or import an estimated 2,000,000
recreational vessels annually.
Eighty percent are built by major manufacturers. For those
manufacturers the Coast Guard estimates five minutes per vessel to
determine the HIN and affix it to the vessel:
.80 x 2,000,000=1,600,000 vessels
5 x 1,600,000=8,000,000 minutes=133,333 hours.
Twenty percent of the vessels are built by small and often non-
sophisticated manufacturers. For those manufacturers the Coast Guard
estimates 15 minutes per vessel to determine the HIN and affix it to
the vessel:
.20 x 2,000,000=400,000 vessels
15 x 400,000=6,000,000 minutes=100,000 hours.
An estimated 17,000 individuals build their own vessels annually.
Individuals building their own vessels are assigned an entire Hull
Identification Number by the State in which they reside. The Coast
Guard estimates that it takes an individual approximately 15 minutes to
affix the HIN to a vessel:
17,000 x 15=255,000 minutes=4,250 hours
133,333+100,000+4,250=237,583 hours a total annual burden.
This total annual burden estimate would vary from year to year
depending upon the state of the national economy which impacts upon
annual production figures.
There is also no practical way to estimate the burden per
respondent for the proposed COO requirement. The respondents are vessel
manufacturers and importers and State vessel registration and numbering
authorities and members of the public who build their own vessels. Most
manufacturers with a computer will not suffer from significant burdens,
because the computer can be programmed to generate completed COOs. For
those manufacturers the Coast Guard estimates 3 minutes per vessel to
complete a COO:
.80 x 2,000,000=1,600,000 vessels
3 x 1,600,000=4,800,000 minutes=80,000 hours.
Twenty percent of the vessels are built by small and often non-
sophisticated manufacturers. For those manufacturers the Coast Guard
estimates 5 minutes per vessel to type the required information
(security standards would require that the COO be machine prepared):
.20 x 2,000,000=400,000 vessels
5 x 400,000=2,000,000 minutes=33,333 hours.
Approximately 17,000 individuals build their own vessels annually.
The States assign Hull Identification Numbers to individuals building
their own vessels. For individuals the Coast Guard estimates 30 minutes
per vessel to obtain a COO from the State.
30 x 17,000=510,000=8,500 hours.
States and territories participating in VIS and assigning Hull
Identification Numbers would have computers to generate the COO and HIN
on the basis of information supplied by an individual. The Coast Guard
estimates 5 minutes for States or territories to enter information
about a vessel into a computer and generate a COO:
5 x 17,000=85,000=1,416 hours
80,000+33,000+8,500+1,416=122,916 hours total annual burden.
This annual burden estimate could be substantially higher or lower
from year to year depending upon the state of the national economy,
which impacts upon annual production figures.
Federalism
The Coast Guard has analyzed this proposal in accordance with the
principles and criteria contained in Executive Order 12612 and has
determined that this proposal does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment.
These regulations will benefit State boating authorities enforcing
State titling and registration regulations.
Title 46 U.S.C. 4302 authorizes the Coast Guard to establish HIN
regulations. Unless the Secretary provides an exemption, a State may
not establish, continue in effect, or enforce a law or regulation that
is not identical to a regulation prescribed under 46 U.S.C. 4302.
Therefore, the Coast Guard intends to preempt State and local laws and
regulations which are not identical to the Coast Guard's HIN or COO
requirements. Title 46 U.S.C. chapter 125 requires the Coast Guard to
establish VIS requirements. The States' participation in VIS is
entirely voluntary; however, once a State elects to participate, it
must comply with the requirements of VIS in order to ensure the
integrity and uniformity of the system. Therefore, only those States
meeting all of the VIS requirements will be allowed to participate in
the VIS system, and the Coast Guard would preempt State and local laws
prescribing requirements for VIS which are not identical to those the
Coast Guard prescribes.
Environment
The Coast Guard considered the environmental impact of this
proposal and concluded that under section 2.b.2(1) of Commandant
Instruction M16475.1B, this proposal is categorically excluded from
further environmental documentation. This proposal governs labeling and
the issuance of COOs for vessels, and has no environmental
consequences. A Categorical Exclusion Determination is available in the
docket for inspection or copying where indicated under ADDRESSES.
List of Subjects in 33 CFR Part 181
Labeling, Marine safety, Reporting and recordkeeping requirements,
Incorporation by reference.
For the reasons set out in the preamble, the Coast Guard proposes
to amend 33 CFR part 181 as follows:
PART 181--MANUFACTURER REQUIREMENTS
1. The authority citation for part 181 is revised to read as
follows:
Authority: 46 U.S.C. 4302, 12501, 12502; 49 CFR 1.46.
2. In Sec. 181.3, paragraph (f) is revised to read as follows:
Sec. 181.3 Definitions.
* * * * *
(f) Certificate of origin means form CG-XXXX.
* * * * *
3. In Sec. 181.4, paragraph (b) is amended by adding the following
incorporations by reference in alphabetical order:
Sec. 181.4 Incorporation by reference.
* * * * *
(b) * * *
American National Standards Institute, Customer Service Sales
Department, 11 West 42nd Street, New York, NY 10036.
ISO 3166-88 Codes for the representation of names of countries
Sec. 181.25(a)
ISO 1073/I-1976 Alphanumeric character sets for optical recognition--
Part I: Character Set OCR-A--Shapes and dimensions of the printed image
Sec. 181.45(b)
* * * * *
4. Section 181.25 is revised to read as follows:
Sec. 181.25 Hull identification number format.
Each of the hull identification numbers required by Sec. 181.23
must consist of nineteen characters, uninterrupted by slashes, hyphens,
or spaces, as follows:
(a) The first two characters must be an alphabetic code from column
2 of ISO 3166-88 indicating the country of manufacturer identification
code registration.
(b) Characters three through five must be a manufacturer
identification code assigned under Sec. 181.31(a) or the importer
designation assigned under Sec. 181.31(b).
(c) Characters six through ten must be a serial number assigned by
the manufacturer in letters of the English alphabet, or Arabic
numerals, or both, and may not include the letters, I, O and Q.
(d) Characters eleven and twelve must indicate the month and year
of certification when a date of certification is required. In all other
cases characters eleven and twelve must indicate the date of
manufacture. The date indicated can be no earlier than the date
construction or assembly began and no later than the date the vessel
leaves the place of manufacture or assembly or is imported into the
United States for the purposes of sale. Character eleven must be
indicated using letters of the English alphabet. The first month of the
year, January, must be designated by the letter ``A'', the second
month, February, by the letter ``B'', and so on until the last month of
the year, December. Character twelve must be the last digit of the year
of manufacture or certification and must be an Arabic numeral.
(e) Characters thirteen and fourteen must indicate the model year
using Arabic numerals for the last two numbers of the model year such
as ``94'' for 1994 and ``95'' for 1995.
(f) The fifteenth character must indicate the overall length of the
vessel using the corresponding letter of the English alphabet from
Table 181.25(f).
Table 181.25(f).--Characters Representing Length of Boat1
------------------------------------------------------------------------
Character Length
------------------------------------------------------------------------
A.................................. Less than 6 ft.
B.................................. 6 ft to 10 ft.
C.................................. 11 ft.
D.................................. 12 ft.
E.................................. 13 ft.
F.................................. 14 ft.
G.................................. 15 ft.
H.................................. 16 ft.
J.................................. 17 ft.
K.................................. 18 ft.
L.................................. 19 ft.
M.................................. 20 ft.
N.................................. 21 ft.
P.................................. 22 ft.
R.................................. 23 ft.
S.................................. 24 ft.
T.................................. 25 ft.
U.................................. 26 ft.
V.................................. 27 ft.
W.................................. 28 ft.
X.................................. 29 ft.
Y.................................. 30 ft.
Z.................................. 31 ft or more.
------------------------------------------------------------------------
1Inches are not included in the measurement of length, e.g., 15 ft 10 in
is 15 ft and 16 ft 3 in is 16 ft.
(g) The sixteenth character must indicate the hull material of the
vessel using the corresponding Arabic numeral from Table 181.25(g).
Table 181.25(g).--Characters Representing Hull Material of Vessel
------------------------------------------------------------------------
Character Hull material
------------------------------------------------------------------------
1.................................. Aluminum.
2.................................. Ferrocement.\1\
3.................................. Fiber Reinforced Plastic.
4.................................. Flexible Fabric.\2\
5.................................. Foam.
6.................................. Plastic.\3\
7.................................. Steel.
8.................................. Wood.
------------------------------------------------------------------------
\1\Ferrocement includes all types of concrete and portland cement.
\2\Flexible fabric can be distinguished from plastic sheet by the
absence of any woven material.
\3\Plastic includes flexible plastic sheet, rigid sheet which has been
thermoformed, and rotational molded plastic.
(h) The seventeenth character must indicate the principal means of
propulsion of the vessel using the corresponding Arabic numeral from
Table 181.25(h).
Table 181.25(h).--Characters Representing Principal Means of Propulsion
------------------------------------------------------------------------
Character Principal propulsion
------------------------------------------------------------------------
1.................................. Air Propeller.
2.................................. Bracket mounted outboard.
3.................................. Inboard.
4.................................. Inboard jet.
5.................................. Inboard/Outdrive.
6.................................. Non-powered.\1\
7.................................. Outboard.
8.................................. Sail.\2\
9.................................. Sail w/Inboard Auxiliary.
------------------------------------------------------------------------
\1\Non-powered includes pedals, paddles and oars, but not sails.
\2\Sail includes sailboats which may have a small outboard engine for
auxiliary power.
(i) The eighteenth character must indicate the type of vessel using
the corresponding Arabic numeral from Table 181.25(i).
Table 181.25(i).--Characters Representing Type of Boat
------------------------------------------------------------------------
Character Type
------------------------------------------------------------------------
1............. Air Cushion Vehicle.\1\
2............. Canoe, Kayak, Sailboard, Surfboard.
3............. Inflatable.\1\
4............. Monohull/Cabin Configuration.\2\
5............. Monohull/Closed Bow.\3\
6............. Monohull/Open Bow.\4\
7............. Multihull/Cabin or closed Bow.2,3,5
8............. Multihull/Open Deck.4,5
9............. Personal Watercraft.\6\
------------------------------------------------------------------------
\1\Air Cushion Vehicle is sometimes called a hovercraft, which is a
registered trademark.
\2\Cabin configuration includes full cabin, cuddy cabin, houseboat, and
in general any shelter containing berths, or other accommodations for
personnel.
\3\Closed bow is most commonly called a runabout and includes any type
of forward deck which is not a shelter for personnel.
\4\Open bow or Open Deck includes utility boats, open deck bass boats,
and most center console vessels.
\5\Multihull includes any watercraft where there are distinct hulls
connected by a common deck such as trihulls, catamarans and pontoon
boats.
\6\Personal watercraft comprise a wide variety of craft on which the
operator and/or passengers ride, rather than occupy a passenger
carrying area inside the hull.
(j) The nineteenth character must be a check digit calculated as
follows:
(1) On line A of Figure 181.25(j) enter the first eighteen
characters of the HIN.
(2) On line B enter the value of each character in the HIN.
(3) Multiply each number in line B by its corresponding number in
line C for each of the eighteen digits and enter the product of each of
these separate computations in the appropriate spaces in line D.
(4) Add all the numbers recorded in line D together.
(5) Divide the final sum by the number, 10. The remainder of this
division is the check digit, the nineteenth character in the HIN. If
the remainder is zero, the nineteenth character is 0.
BILLING CODE 4910-14-C
TP06MY94.000
BILLING CODE 4910-14-C
5. In Sec. 181.31, paragraph (c) is revised to read as follows:
Sec. 181.31 Manufacturer identification code assignment.
* * * * *
(c) Each person required to identify a vessel under Sec. 181.23(b)
must obtain a hull identification number from the issuing authority of
the State where the vessel will be principally used, or, if the States
does not assign these numbers, from the Coast Guard District office in
the area of principal use.
* * * * *
6. A new subpart D is added to read as follows:
Subpart D--Certificates of Origin for Boats
Sec.
181.41 Purpose and applicability.
181.43 Certificate of Origin required.
181.45 Required information for Certificate of Origin.
181.47 Duplicate Certificate of Origin form.
181.49 Source for Certificate of Origin form.
181.51 Alteration of Certificate of Origin.
181.53 Fraudulent use of Certificate of Origin.
181.55 Unauthorized name or address change.
Subpart D--Certificates of Origin for Boats
Sec. 181.41 Purpose and applicability.
This subpart prescribes requirements for the issuance of
Certificates of Origin (CG-XXXX) to vessels to which this part applies.
Sec. 181.43 Certificate of Origin required.
(a) A manufacturer (or importer) as defined in Sec. 181.3 of this
part, shall furnish with each new recreational vessel that is sold or
offered for sale, a Certificate of Origin (CG-XXXX) containing the
information required by this subpart.
(b) No person shall sell or offer for sale a new recreational
vessel unless a Certificate of Origin (CG-XXXX) meeting the
requirements of this subpart is furnished with the recreational vessel.
Sec. 181.45 Required information for Certificate of Origin.
A Certificate of Origin (CG-XXXX) furnished with a recreational
vessel in accordance with Sec. 181.43 must--
(a) Be signed by or on behalf of the vessel manufacturer; and
(b) Recite the following:
(1) The vessel's 19 character hull identification number assigned
in accordance with Sec. 181.25.
(2) The date the Certificate of Origin is issued.
(3) The model name or numerical designation for the vessel.
(4) The length of the vessel in feet and inches.
(5) The beam of the vessel in feet and inches.
(6) Whether the vessel is for commercial or recreational use.
(7) The name and address of the dealer or individual to whom the
vessel is first transferred.
(8) The place the vessel is constructed (plant location).
Sec. 181.47 Duplicate Certificate of Origin form.
A duplicate Certificate of Origin form (CG-XXXX) issued by a boat
manufacturer or importer that is used as a replacement for an original
CG-XXXX, must:
(a) Incorporate the same security features as the original CG-XXXX;
(b) Recite the same information as the original CG-XXXX required in
Sec. 181.45, except for the date of issuance; and
(c) State clearly on the face of the document that it is a
``Duplicate.''
Sec. 181.49 Source for Certificate of Origin form.
A manufacturer (or importer) as defined in Sec. 181.3 of this part,
must obtain Certificate of Origin forms (CG-XXXX) from: [Address to be
inserted in final rule].
Sec. 181.51 Alteration of Certificate of Origin.
No person shall intentionally alter a Certificate of Origin (CG-
XXXX).
Sec. 181.53 Fraudulent use of Certificate of Origin.
No person shall knowingly use a Certificate of Origin (CG-XXXX) in
a fraudulent manner.
Sec. 181.55 Unauthorized name or address change.
No manufacturer or importer who issues Certificates of Origin (CG-
XXXX) in accordance with this subpart shall change the company name or
address without notifying the U.S. Coast Guard Recreational Boating
Product Assurance Branch, 2100 Second Street SW., Washington, DC 20593-
0001 in writing.
Dated: April 28, 1994.
W.J. Ecker,
Rear Admiral, U.S. Coast Guard, Chief, Office of Navigation Safety and
Waterway Services.
BILLING CODE 4910-14-M
Appendix A to This Document Sample Forms
TP06MY94.001
TP06MY94.002
[FR Doc. 94-10853 Filed 5-5-94; 8:45 am]
BILLING CODE 4910-14-C