[Federal Register Volume 63, Number 220 (Monday, November 16, 1998)]
[Proposed Rules]
[Pages 63638-63639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30597]



[[Page 63638]]

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DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 181

[CGD 92-065]
RIN 2115-AE37


Hull Identification Numbers for Recreational Boats

AGENCY: Coast Guard, DOT.

ACTION: Request for comments.

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SUMMARY: For several years the Coast Guard has been working on a 
regulatory project to expand the existing 12-character Hull 
Identification Number (HIN) required for all recreational boats 
manufactured in or imported into the United States. Many State law 
enforcement personnel, bankers, insurers, and theft investigators favor 
a longer HIN containing vessel-specific characters and a check digit. 
They believe it would deter both boat theft and the alteration of HIN's 
for fraudulent purposes. Therefore, the purpose of this notice is to 
solicit comments from interested people, groups, and businesses about 
whether the expected benefits to society of an expanded HIN format 
outweigh the paperwork burdens on boat manufacturers.

DATES: Comments must reach the Coast Guard on or before February 16, 
1999.

ADDRESSES: You may mail comments 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 
deliver them to room 3406 at the same address between 9:30 a.m. and 2 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is 202-267-1477.
    The Executive Secretary maintains the public docket for this 
rulemaking. Comments, and documents as indicated in this preamble, will 
become part of this docket and will be available for inspection or 
copying at room 3406, U.S. Coast Guard Headquarters, between 9:30 a.m. 
and 2 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT:
Alston Colihan, Office of Boating Safety, Recreational Boating Product 
Assurance Division, 202-267-0981. A copy of this notice may be obtained 
by calling the U.S. Coast Guard Infoline at 1-800-368-5647 or may be 
found on the Internet at the Office of Boating Safety Web Site at URL 
address www.uscgboating.org.

SUPPLEMENTARY INFORMATION:

Request for Comments

    Persons submitting comments should include their names and 
addresses, identify this notice (CGC 92-065) and the specific area of 
concern to which each comment applies, and give the reason for each 
comment. Please submit two copies of all comments and attachments in an 
unbound format, no larger than 8\1/2\ by 11 inches, suitable for 
copying and electronic filing. If you want us to acknowledge receipt of 
your comments, please enclose a stamped, self-addressed postcard or 
envelope.

Background and Purpose

    The Secretary of Transportation is required to establish the Vessel 
Identification System (VIS) (46 U.S.C. chapters 125, 131, and 313) for 
use by the public and law enforcement officials. The Secretary has 
delegated to the Commandment, 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.

Regulatory History

    The Coast Guard published a Notice of Proposed Rulemaking in the 
Federal Register (59 FR 23651) on May 6, 1994, to expand the existing 
12-character HIN to include certain vessel-specific information similar 
to the Vehicle Identification Number (VIN) on an automobile. A check 
digit in the expanded HIN would have made alteration of an HIN more 
difficult, thereby helping to prevent fraud in the sale of vessels. The 
comment period closed on September 9, 1994.
    Various parties commenting on the proposal opposed the 19-character 
HIN and one comment from an association sought an extension of the 
comment period. Therefore, on November 9, 1994, a notice announcing a 
workshop and the reopening of the comment period was published in the 
Federal Register (59 FR 55823). The purpose of the workshop was to 
receive oral comments on the proposed 19-character HIN and explore 
various alternatives. Several organizations, including the 
International Organization for Standardization (ISO), the National 
Association of State Boating Law Administrators, the National Marine 
Manufacturers Association, the American Boat and yacht Council, the 
National Association of Marine Investigators, and the North American 
Paddlesports Association were specifically invited to give oral 
presentations. The comment period for the NPRM was extended until 
January 9, 1995.
    The major obstacle to the proposed 19-character HIN is the 
increased information collection burdens, particularly on small 
entities and the builders of high-volume, low cost boats, such as 
canoes, kayaks, and inflatables.
    The Coast Guard received 114 comments on the proposal, the majority 
of which were opposed to a 19-character HIN format or recommended a 
different format. None of the comments from State, insurance, theft 
investigation, or law enforcement organizations indicated that they 
would support exceptions to the proposed requirements for small 
entities or builders of high-volume, lost-cost boats. Preliminary 
estimates of the time required to manually calculate the check digit 
for a single boat is 15 minutes.
    Several comments, including one from the National Marine 
Manufacturers Association, which represents approximately 200 of the 
larger boat manufacturers, indicated that the International Standards 
Organization had finalized a HIN standard consisting of the existing 
Coast Guard 12-character HIN format preceded by a 2-character country 
code and a hyphen. The comments indicated that manufacturers would be 
using the ISO HIN standard beginning with the 1996 model year. If the 
Coast Guard adopted a different HIN format, manufacturers would have to 
place two different HIN's in the same location, creating worldwide 
documentation and importation problems for all involved.
    Federal agencies with regulatory programs are subject to the 
Paperwork Reduction Act, which is enforced by the Office of Management 
and Budget (OMB). The intent of the Act is to ensure that the Federal 
Government imposes only the minimum burden on the public in collecting 
information and maintaining records and that the information collected 
or maintained is necessary and useful. Regulations requiring 
manufacturers to display labels, such as HIN's, are examples of 
collection-of-information requirements.
    During the comment period, OMB contacted the Coast Guard and 
indicated that it had received many negative comments on the project 
and that OMB would be taking a very close look at the proposed 
collection of information requirements. None of the comments in favor 
of the proposal for a 19-character HIN were willing to allow exceptions 
for builders of high volume, low-cost boats. Therefore, because of 
Coast Guard concerns about information-collection burdens and the OMB 
comments, the

[[Page 63639]]

Coast Guard published a Supplemental Notice of Proposed Rulemaking 
(SNPRM) in the Federal Register on February 21, 1997 (62 FR 7971). The 
Coast Guard indicated that it would align the HIN with the recently 
adopted ISO 14-character HIN standard. The comment period closed May 
22, 1997.
    The Coast Guard received 31 comments nearly all of which were 
opposed to the 14-character ISO HIN format. Some of the comments 
indicated that, if the Coast Guard were to adopt the ISO format, 
instead of a 17- or 19-character HIN format, some States might refuse 
to participate in the development of the Vessel Identification System 
(VIS).

Discussion

    There are two opposing views about how to expand the HIN format: 
(1) the States, bankers, insurers, and theft investigators favor an 
expanded format with vessel-specific characters and a check digit to 
deter both boat theft and the alteration of HIN's for fraudulent 
purposes; and (2) boat builders favor the recently adopted 14-character 
ISO HIN format. The Coast Guard is developing the Vessel Identification 
System (VIS), which will provide a nationwide pool of vessel and vessel 
owner information that will help in identifying and recovering of 
stolen vessels and deterring vessel theft. If just a few States with 
large recreational vessel populations refuse to participate in VIS, the 
usefulness of the system could be seriously jeopardized. However, the 
Coast Guard lacks detailed information about the anticipated costs and 
benefits of the HIN format favored by the States, bankers, insurers, 
and theft investigators. Also, we will believe that, if an expanded HIN 
format consisting of vessel-specific characters and a check digit is 
ever adopted, the Coast Guard should be allowed to exempt small 
manufacturers and manufacturers of high-volume, low-cost boats to 
minimize costs and information collection burdens. Therefore, the Coast 
Guard encourages you to comment on (1) the expected benefits of an 
expanded Hull Identification Number with vessel-specific characters and 
a check digit; (2) the manner in which the Coast Guard should exempt 
small entities and the builders of high-volume, low cost boats, such as 
canoes, kayaks, and inflatables; and (3) the estimated burdens and 
costs to boat manufacturers if the HIN regulations were revised to 
require vessel-specific characters and a check digit. We particularly 
need your help in answering the following questions:
    1. Expanded Hull Identification Number. What are the expected 
benefits if the HIN regulations include vessel specific characters 
delineating a vessel's length, hull material, and means of propulsion 
and a check digit to help detect fraudulent alterations of HIN's? What 
are the estimated numbers of thefts that would be prevented? What are 
the estimated numbers of lost or stolen boats that would be recovered? 
What is the estimated value of insurance company losses that would be 
prevented? What are the estimated numbers of fraud attempts that would 
be prevented? What are the estimated reductions in investigatory 
expenditures?
    1. Small entities. The Coast Guard believes that, if it returns to 
a proposal for regulations to require an HIN consisting of additional 
vessel-specific characters and a check digit, then we have to be able 
to exempt some builders to minimize costs and information collection 
burdens on small manufacturers and manufacturers of high-volume, low-
cost boats. Should the Coast Guard consider exempting all builders of 
non-powered boats? Should the Coast Guard consider exempting 
manufacturers of boats that sell for less than a certain amount? What 
alternatives are available that would reduce adverse impacts on small 
entities and builders of high-volume, low-cost boats?
    3. Costs and burdens. Preliminary estimates of the time required to 
manually calculate the check digit for a single boat is 15 minutes. Is 
this estimate valid? How does this estimate translate into annual costs 
for manufacturers of various types of recreational boats?
    Additional information about the benefits of an expanded HIN 
consisting of vessel-specific characters and a check digit and possible 
exceptions for small entities and builders of high-volume, low-cost 
boats is needed if the Coast Guard is to reconsider an expanded HIN.
    Dated: November 5, 1998.
Ernest R. Riutta,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Operations.
[FR Doc. 98-30597 Filed 11-13-98; 8:45 am]
BILLING CODE 4910-15-M