Wondering whether you should get vessel documentation over state registration? If your recreational ship measures over five net tons, there are many reasons to consider documentation.
US Coast Guard Vessel Documentation: What Is It?
Vessel documentation is a form of registration at a national level, while registration reaches the state level only. It’s one of the oldest functions of the US Government, dating back to the 11th Act of the First Congress. Documentation proves not only the ship’s nationality for international purposes but also legitimates commerce between the states, and admits vessels to certain restricted trades (such as fisheries and coastwise).
Documentation Versus State Registration
So what are the benefits of documenting your ship at a national level? If your ship is over 25 feet, then it surely measures more than five net tons. That makes it eligible for documentation. A documented vessel grants you the following:
- Sailing through foreign waters. A US Coast Guard Certificate of Documentation is recognized universally by customs officials all over the world, as it is proof of the vessel’s ownership and nationality. It also makes it easier to get clearance when entering and leaving foreign ports. Vessel documentation provides you with the protection and the status that comes from the US Government.
- Ship background and title assurance. To ensure each vessel will have a clear history of ownership, the US Coast Guard holds strict requirements for it. Establishing a chain of title enables owners of documented vessels to expedite transfers of ownership and refinancing. If you bought a used vessel and are suspicious about the previous owner’s legitimacy, you can ask for an Abstract of Title. Vessel documentation also becomes helpful when tracking stolen vessels across state lines with the federally documented record of ownership.
- Vessel marking. Documented vessels are given an official number which remains during the whole ship’s lifespan. Owners are required to place the number on the interior structure of the hull, which brings a more desirable appearance than the number of state registration. It is simple to have one number assigned for the duration of ownership that is accessible while aboard the boat.
- Financing your ship. Documented vessels are eligible for Preferred Ship Mortgages that can facilitate financing in case you need it. Most lenders will ask you to have a US Coast Guard vessel documentation, but even if they don’t, you may still be able to negotiate better terms for financing if you get documentation instead of state registration.
How Do I Get Vessel Documentation?
If you’re looking to get your boat documented, you can find the right form on our website. We make it easy for you to follow every single step to get the maximum benefits of documenting your vessel.
