46 U.S.C. § 12111 — Registry endorsement

Page 208 TITLE 46—SHIPPING § 12108 § 12108. Authority to extend duration of vessel certificates (a) CERTIFICATES.—Provided a vessel is in com- pliance with inspection requirements in section 3313, the Secretary of the department in which in the Coast Guard is operating may, if the Sec- retary makes the determination described in subsection (b), extend, for a period of not more than 1 year, an expiring certificate of docu- mentation issued for a vessel under chapter 121. (b) DETERMINATION.—The determination re- ferred to in subsection (a) is a determination that such extension is required to enable the Coast Guard to— (1) eliminate a backlog in processing appli- cations for such certificates; or (2) act in response to a national emergency or natural disaster. (c) MANNER OF EXTENSION.—Any extension granted under this section may be granted to in- dividual vessels or to a specifically identified group of vessels. (Added Pub. L. 116–283, div. G, title LVXXXIII [LXXXIII], § 8320(a), Jan. 1, 2021, 134 Stat. 4701.) SUBCHAPTER II—ENDORSEMENTS AND SPECIAL DOCUMENTATION § 12111. Registry endorsement (a) REQUIREMENTS.—A registry endorsement may be issued for a vessel that satisfies the re- quirements of section 12103 of this title. (b) AUTHORIZED ACTIVITY.—A vessel for which a registry endorsement is issued may engage in foreign trade or trade with Guam, American Samoa, Wake, Midway, or Kingman Reef. (c) CERTAIN VESSELS OWNED BY TRUSTS.— (1) NONAPPLICATION OF BENEFICIARY CITIZEN- SHIP REQUIREMENT.—For the issuance of a cer- tificate of documentation with only a registry endorsement, the beneficiaries of a trust are not required to be citizens of the United States if the trust qualifies under paragraph (2) and the vessel is subject to a charter to a citizen of the United States. (2) REQUIREMENTS FOR TRUST TO QUALIFY.— (A) IN GENERAL.—Subject to subparagraph (B), a trust qualifies under this paragraph with respect to a vessel only if— (i) each trustee is a citizen of the United States; and (ii) the application for documentation of the vessel includes the affidavit of each trustee stating that the trustee is not aware of any reason involving a bene- ficiary of the trust that is not a citizen of the United States, or involving any other person that is not a citizen of the United States, as a result of which the beneficiary or other person would hold more than 25 percent of the aggregate power to influ- ence or limit the exercise of the authority of the trustee with respect to matters in- volving any ownership or operation of the vessel that may adversely affect the inter- ests of the United States. (B) AUTHORITY OF NON-CITIZENS.—If any person that is not a citizen of the United States has authority to direct or participate in directing a trustee for a trust in matters involving any ownership or operation of the vessel that may adversely affect the inter- ests of the United States or in removing a trustee for a trust without cause, either di- rectly or indirectly through the control of another person, the trust is not qualified under this paragraph unless the trust instru- ment provides that persons who are not citi- zens of the United States may not hold more than 25 percent of the aggregate authority to so direct or remove a trustee. (C) OWNERSHIP BY NON-CITIZENS.—Subpara- graphs (A) and (B) do not prohibit a person that is not a citizen of the United States from holding more than 25 percent of the beneficial interest in a trust. (3) CITIZENSHIP OF PERSON CHARTERING VES- SEL.—If a person chartering a vessel from a trust that qualifies under paragraph (2) is a citizen of the United States under section 50501 of this title, the vessel is deemed to be owned by a citizen of the United States for purposes of that section and related laws, ex- cept chapter 531 of this title. (d) ACTIVITIES INVOLVING MOBILE OFFSHORE DRILLING UNITS.— (1) IN GENERAL.—Only a vessel for which a certificate of documentation with a registry endorsement is issued may engage in— (A) the setting, relocation, or recovery of the anchors or other mooring equipment of a mobile offshore drilling unit that is located over the outer Continental Shelf (as defined in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a))); or (B) the transportation of merchandise or personnel to or from a point in the United States from or to a mobile offshore drilling unit located over the outer Continental Shelf that is not attached to the seabed. (2) COASTWISE TRADE NOT AUTHORIZED.—Noth- ing in paragraph (1) authorizes the employ- ment in the coastwise trade of a vessel that does not meet the requirements of section 12112 of this title. (Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1494; Pub. L. 109–241, title III, § 310, July 11, 2006, 120 Stat. 529; Pub. L. 110–181, div. C, title XXXV, § 3525(a)(1), (b), Jan. 28, 2008, 122 Stat. 600, 601.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 12111(a) ...... 46:12105(a). 12111(b) ...... 46:12105(b). 12111(c) ...... 46:12102(d). Editorial Notes PRIOR PROVISIONS A prior section 12111, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 588; Pub. L. 100–710, title I, § 103(a), Nov. 23, 1988, 102 Stat. 4749; Pub. L. 104–324, title III, § 301(d)(2)(A), Oct. 19, 1996, 110 Stat. 3916; Pub. L. 107–295, title II, § 205(c), Nov. 25, 2002, 116 Stat. 2096, originally derived from section 65o of former Title 46, Shipping, related to surrender and invalidation of certificates of docu- mentation, prior to the general amendment of this chapter by Pub. L. 109–304. See sections 12135 and 12136 of this title. Page 209 TITLE 46—SHIPPING § 12113 AMENDMENTS 2008—Pub. L. 110–181, § 3525(b), repealed Pub. L. 109–241, § 310. See 2006 Amendment note below. Subsec. (d). Pub. L. 110–181, § 3525(a)(1), incorporated the substance of the amendment by Pub. L. 109–241, § 310, into this section by adding subsec. (d). See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construc- tion note preceding section 101 of this title. 2006—Pub. L. 109–241, § 310, which directed the amend- ment of former section 12105 of this title from which this section was derived in part, was repealed by Pub. L. 110–181, § 3525(b). See 2008 Amendment note for sub- sec. (d) and Historical and Revision notes above. § 12112. Coastwise endorsement (a) REQUIREMENTS.—A coastwise endorsement may be issued for a vessel that— (1) satisfies the requirements of section 12103 of this title; (2)(A) was built in the United States; or (B) if not built in the United States— (i) was captured in war by citizens of the United States and lawfully condemned as prize; (ii) was adjudged to be forfeited for a breach of the laws of the United States; or (iii) qualifies as a wrecked vessel under section 12107 of this title; and (3) otherwise qualifies under the laws of the United States to engage in the coastwise trade. (b) AUTHORIZED ACTIVITY.—Subject to the laws of the United States regulating the coastwise trade, a vessel for which a coastwise endorse- ment is issued may engage in the coastwise trade. (Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1495.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 12112(a) ...... 46:12106(a). 12112(b) ...... 46:12106(b). In subsection (b), the word ‘‘only’’ is omitted because section 12102(a), as revised by the bill, contains a gen- eral requirement for appropriate documentation to en- gage in any trade. Editorial Notes PRIOR PROVISIONS A prior section 12112, Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 588; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988, 102 Stat. 4750; Pub. L. 101–225, title III, § 301(a)(11), Dec. 12, 1989, 103 Stat. 1922, originally derived from section 65p of former Title 46, Shipping, related to vessels pro- cured outside the United States, prior to the general amendment of this chapter by Pub. L. 109–304. See sec- tion 12115 of this title. Statutory Notes and Related Subsidiaries CERTAIN VESSELS ENGAGED IN ALASKA COASTWISE TRADE Pub. L. 108–293, title VI, § 608(b), Aug. 9, 2004, 118 Stat. 1056, provided that: ‘‘(1) IN GENERAL.—Notwithstanding any other provi- sion of law, a person shall be treated as a citizen of the United States under section 12102(a) [now section 12103(a), (b)] of title 46, United States Code, section 2 of the Shipping Act, 1916 ([former] 46 U.S.C. App. 802) [see 46 U.S.C. 50501], and section 27 of the Merchant Marine Act, 1920 ([former] 46 U.S.C. App. 883) [see Disposition Table preceding section 101 of this title], for purposes of issuance of a coastwise endorsement under section 12106(e) of title 46, United States Code (as that section was in effect on the day before the date of enactment of this Act [Aug. 9, 2004]), for a vessel owned by the per- son on the date of enactment of this Act, or any re- placement vessel of a similar size and function, if the person— ‘‘(A) owned a vessel before January 1, 2001, that had a coastwise endorsement under [former] section 12106(e) of title 46, United States Code; and ‘‘(B) as of the date of the enactment of this Act [Aug. 9, 2004], derives substantially all of its revenue from leasing vessels engaged in the transportation or distribution of petroleum products and other cargo in Alaska. ‘‘(2) LIMITATION ON COASTWISE TRADE.—A vessel owned by a person described in paragraph (1) for which a coastwise endorsement is issued under [former] section 12106(e) of title 46, United States Code, may be em- ployed in the coastwise trade only within Alaska and in the coastwise trade to and from Alaska. ‘‘(3) TERMINATION.—The application of this subsection to a person described in paragraph (1) shall terminate if all of that person’s vessels described in paragraph (1) are sold to a person eligible to document vessels under section 12106(a) [now section 12112(a)] of title 46, United States Code.’’ § 12113. Fishery endorsement (a) REQUIREMENTS.—A fishery endorsement may be issued for a vessel that— (1) satisfies the requirements of section 12103 of this title and, if owned by an entity, the en- tity satisfies the ownership requirements in subsection (c); (2) was built in the United States; (3) if rebuilt, was rebuilt in the United States; (4) was not forfeited to the United States Government after July 1, 2001, for a breach of the laws of the United States; and (5) otherwise qualifies under the laws of the United States to engage in the fisheries. (b) AUTHORIZED ACTIVITY.— (1) IN GENERAL.—Subject to the laws of the United States regulating the fisheries, a vessel for which a fishery endorsement is issued may engage in the fisheries. (2) USE BY PROHIBITED PERSONS.—A fishery endorsement is invalid immediately if the ves- sel for which it is issued is used as a fishing vessel while it is chartered or leased to an in- dividual who is not a citizen of the United States or to an entity that is not eligible to own a vessel with a fishery endorsement. (c) OWNERSHIP REQUIREMENTS FOR ENTITIES.— (1) IN GENERAL.—A vessel owned by an entity is eligible for a fishery endorsement only if at least 75 percent of the interest in the entity, at each tier of ownership and in the aggregate, is owned and controlled by citizens of the United States. (2) DETERMINING 75 PERCENT INTEREST.—In de- termining whether at least 75 percent of the interest in the entity is owned and controlled by citizens of the United States under para- graph (1), the Secretary shall apply section 50501(d) of this title, except that for this pur- pose the terms ‘‘control’’ or ‘‘controlled’’— (A) include the right to—