Federal regulations · Through 2026-08-25 · Newer source version available

46 CFR 68.17: Restrictions.

(a) Vessels employed subject to the Act are entitled to operation only in the coastwise trade and only to the extent described in paragraphs (b) and/or (c) of this section.
(b) A vessel owned by an 883-1 corporation may engage in coastwise transportation for hire as a service to a parent or subsidiary corporation as defined in § 68.3. Such transportation for hire must be between points of the United States, including territories, districts, and possessions thereof embraced in the coastwise laws.
(c) A vessel owned by an 883-1 corporation may be operated under demise or bareboat charter to a common or a contract carrier subject to 49 U.S.C. chapter 101 if the corporation is a U.S. citizen as defined in 46 U.S.C. App. 802.
(1) Such common or contract carrier may not be connected either directly or indirectly by ownership or control with the 883-1 corporation.
(2) The demise or bareboat charter must be at prevailing rates.
(3) The vessels under a demise or bareboat charter may not be used in non-contiguous trade.

Where this section sits in the code

Title 46—Shipping
CHAPTER I—COAST GUARD, DEPARTMENT OF HOMELAND SECURITY
SUBCHAPTER G—DOCUMENTATION AND MEASUREMENT OF VESSELS
PART 68—DOCUMENTATION OF VESSELS: EXCEPTIONS TO COASTWISE QUALIFICATION
Subpart A—Regulations for Engaging in Limited Coastwise Trade

(a) Vessels employed subject to the Act are entitled to operation only in the coastwise trade and only to the extent described in paragraphs (b) and/or (c) of this section.

(b) A vessel owned by an 883-1 corporation may engage in coastwise transportation for hire as a service to a parent or subsidiary corporation as defined in § 68.3. Such transportation for hire must be between points of the United States, including territories, districts, and possessions thereof embraced in the coastwise laws.

(c) A vessel owned by an 883-1 corporation may be operated under demise or bareboat charter to a common or a contract carrier subject to 49 U.S.C. chapter 101 if the corporation is a U.S. citizen as defined in 46 U.S.C. App. 802.

(1) Such common or contract carrier may not be connected either directly or indirectly by ownership or control with the 883-1 corporation.

(2) The demise or bareboat charter must be at prevailing rates.

(3) The vessels under a demise or bareboat charter may not be used in non-contiguous trade.

Collected 2026-08-27T02:26:22Z. Source file · JSON

Browse this collection