Vessel Titling and Federal Documentation

Introduction

Most states require titles for vessels, creating legal ownership records separate from registration. Federal documentation provides an alternative system for qualifying vessels, offering distinct advantages for certain operations.

State Titling

Most states require titles for vessels, creating legal ownership records separate from registration.

Purpose: Establishes chain of ownership, facilitates sales/transfers, enables lien recording, provides proof for insurance/financing.

Application Process: Submit ownership documentation (MCO for new boats, previous title + bill of sale for used), complete state title application, pay titling fees ($5-$25 typical), wait 2-4 weeks for processing.

Title Transfers: Seller completes transfer section (signed, notarized in some states). Buyer submits assigned title with transfer fees and sales tax. Both complete bill of sale with vessel details, price, date. Family transfers often exempt from sales tax.

Federal Documentation (46 CFR Part 67)

Alternative to state registration for vessels ≥5 net tons (~27 feet). Administered by USCG National Vessel Documentation Center, Falling Waters, WV.

When MANDATORY: Commercial fishing vessels AND vessels engaged in coastwise trade (transporting merchandise/passengers between US ports).

When OPTIONAL: Recreational vessels meeting 5 net ton minimum, US citizen ownership.

Four Endorsement Types:

1. Registry: Foreign trade, operations not requiring other endorsements
2. Coastwise: Trade between US ports, dredging, towing, salvage (requires US-built vessel)
3. Fishery: Fishing in US waters, landing catches domestically
4. Recreational: Pleasure use only

Vessels may carry multiple simultaneous endorsements.

Benefits: International recognition proving US nationality, preferred ship mortgage status for financing, no state registration numbers on hull (federal certificate only), permanent ownership proof.

Drawbacks: Initial ($133) and renewal fees ($130/5 years), must mark official number permanently on interior hull, more complex transfer procedures.

Marking Requirements: Vessel name + hailing port on exterior hull (typically stern), ≥4" tall letters. Official number preceded by "NO." permanently marked on interior structural part, 3" block numerals by carving/burning/stamping/embossing. Remove state registration numbers (some states still require registration decals).