If you have a foreign vessel and want to use it in the United States, either for recreational or commercial use, you will need to apply for a MARAD waiver. That’s because the United States has protections that control access to business between domestic ports. Ships that were built outside of the country must have permission to use these trade routes. If you want to conduct business in the United States, but your boat is registered outside the country, this article can help you become familiar with the MARAD waiver process so that you can carry out your commerce legally.
Why Does the MARAD Waiver Exist?
In 1920, the United States passed a legislature called the Merchant Marine Act. The law was created to control commerce on the seas in American waters and between ports that belong to the country. The act was created to promote healthy maritime commerce for Americans, but also to provide protections and rights for seamen. The act plays a role in national security and the building of ships for use in the United States.
Section 27 – The Jones Act
Within the Merchant Marine Act of 1920 is one especially relevant section, entitled the Jones Act. It requires that any goods transported among American ports be moved from place to place on ships built in the country, as well as being required to be owned by a United States citizen and operated by a crew made up of United States citizens. Due to the restrictive nature of these guidelines, there are waivers that allow foreign vessels without compromising domestic commerce. The Passenger Vessel Services Act allows foreign vessels to perform commercial services in American ports in some circumstances.
Who is Eligible for the MARAD Waiver?
There are several requirements that a vessel must meet to apply for the MARAD waiver, as set forth by the Maritime Administration of the United States Department of Transportation. They include the following:
- The boat must be owned by a citizen of the United States or an organization that is a citizen of the United States
- The boat must be at least three years old
- The boat’s purpose is only to carry passengers
- The boat has a maximum capacity of 12 passengers when in service
- Must meet all separate United States Coast Guard regulations
How to Apply for the MARAD Waiver
The first step is to apply for the waiver. This can be done online or via traditional mail services. Next, the MARAD will publish a public record in the Federal Registry for a period of 30 days that proclaims the vessel and its intended use. Then, MARAD officials investigate whether approval will damage current domestic commerce, and next, if approved, the waiver is issued. The final step is to add the waiver to the vessel’s official documentation, which is important legal information that must be kept in a safe location onboard the boat.
Do you want to see if you qualify for the MARAD waiver? Do you need assistance to navigate the process? It’s time to visit the US Vessel Documentation Center. You’ll find the paperwork and info you need to make the application.
