{"data":{"id":"us/46-cfr-68.17","jurisdiction":"us","citation":"46 CFR 68.17","heading":"Restrictions.","body":"(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.\n(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.\n(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.\n(1) Such common or contract carrier may not be connected either directly or indirectly by ownership or control with the 883-1 corporation.\n(2) The demise or bareboat charter must be at prevailing rates.\n(3) The vessels under a demise or bareboat charter may not be used in non-contiguous trade.","path":["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"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-46.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:22Z","sha256":"e8abd6f58a0b67108191e4c676582e4d2147f7ea2e8fe513aac8cb69ca199c6d","source_id":"us-cfr","stale":true,"prev":"us/46-cfr-68.15","next":"us/46-cfr-68.19"},"notice":"GroundRules: Original legal text. Not legal advice."}