46 U.S.C. § 12111 — Registry endorsement
submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 616 words · no verdicts yet
A qualifying vessel may get a registry endorsement for foreign trade or trade with certain islands. Trusts owning such vessels can skip the beneficiary-citizenship rule if trustees are citizens and other conditions are met. Only registry-endorsed vessels may service offshore drilling rigs' anchors or carry supplies to them.
(a) Requirements
A registry* endorsement may be issued for a vessel* that satisfies the requirements of section 12103 of this title.
(b) Authorized Activity
A vessel for which a registry endorsement is issued may engage in foreign trade, or trade with Guam, American Samoa, Wake, Midway, or Kingman Reef.
(c) Certain Vessels Owned by Trusts
(1) Nonapplication of beneficiary citizenship requirement. For issuing a certificate of documentation with only a registry endorsement, a trust's beneficiaries need not be U.S. citizens if the trust qualifies under paragraph (2) and the vessel is chartered to a U.S. citizen.
(2) Requirements for trust to qualify.
(A) In general. Subject to (B), a trust qualifies for a vessel only if (i) each trustee is a U.S. citizen, and (ii) the documentation application includes each trustee's affidavit stating they are unaware of any reason involving a noncitizen beneficiary, or any other noncitizen, that would let that person hold more than 25 percent of the combined power to influence or limit the trustee's authority over the vessel's ownership or operation, in a way that could adversely affect U.S. interests.
(B) Authority of non-citizens. If a noncitizen has authority to direct or help direct a trustee's decisions about the vessel's ownership or operation in a way that could adversely affect U.S. interests, or to remove a trustee without cause (directly or through control of another person), the trust does not qualify unless the trust instrument caps noncitizens at 25 percent of the combined authority to so direct or remove a trustee.
(C) Ownership by non-citizens. Subparagraphs (A) and (B) do not stop a noncitizen from holding more than 25 percent of the trust's beneficial interest.
(3) Citizenship of person chartering vessel. If the person chartering the vessel from a qualifying trust is a U.S. citizen under section 50501 of this title, the vessel is deemed U.S.-citizen-owned for that section and related laws, except chapter 531 of this title.
(d) Activities Involving Mobile Offshore Drilling Units
(1) In general. Only a vessel with a registry-endorsed certificate of documentation may (A) set, relocate, or recover the anchors or other mooring equipment of a mobile offshore drilling unit located over the outer Continental Shelf (as defined in the Outer Continental Shelf Lands Act); or (B) transport merchandise or personnel between a point in the United States and a mobile offshore drilling unit over the outer Continental Shelf that is not attached to the seabed.
(2) Coastwise trade not authorized. Paragraph (1) does not authorize employment in the coastwise trade of a vessel that does not meet section 12112's requirements.
A registry* endorsement may be issued for a vessel* that satisfies the requirements of section 12103 of this title.
A vessel for which a registry endorsement is issued may engage in foreign trade or trade with Guam, American Samoa, Wake, Midway, or Kingman Reef.
For the issuance of a certificate of documentation with only a registry endorsement, the beneficiaries of a trust are not required to be citizens of the United States if the trust qualifies under paragraph (2) and the vessel is subject to a charter to a citizen of the United States.
Subject to subparagraph (B), a trust qualifies under this paragraph with respect to a vessel only if—
each trustee is a citizen of the United States; and
the application for documentation of the vessel includes the affidavit of each trustee stating that the trustee is not aware of any reason involving a beneficiary of the trust that is not a citizen of the United States, or involving any other person that is not a citizen of the United States, as a result of which the beneficiary or other person would hold more than 25 percent of the aggregate power to influence or limit the exercise of the authority of the trustee with respect to matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States.
If any person that is not a citizen of the United States has authority to direct or participate in directing a trustee for a trust in matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States or in removing a trustee for a trust without cause, either directly or indirectly through the control of another person, the trust is not qualified under this paragraph unless the trust instrument provides that persons who are not citizens of the United States may not hold more than 25 percent of the aggregate authority to so direct or remove a trustee.
Subparagraphs (A) and (B) do not prohibit a person that is not a citizen of the United States from holding more than 25 percent of the beneficial interest in a trust.
If a person chartering a vessel from a trust that qualifies under paragraph (2) is a citizen of the United States under section 50501 of this title, the vessel is deemed to be owned by a citizen of the United States for purposes of that section and related laws, except chapter 531 of this title.
Only a vessel for which a certificate of documentation with a registry endorsement is issued may engage in—
the setting, relocation, or recovery of the anchors or other mooring equipment of a mobile offshore drilling unit that is located over the outer Continental Shelf (as defined in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a))); or
the transportation of merchandise or personnel to or from a point in the United States from or to a mobile offshore drilling unit located over the outer Continental Shelf that is not attached to the seabed.
Nothing in paragraph (1) authorizes the employment in the coastwise trade of a vessel that does not meet the requirements of section 12112 of this title.
Source credit: (Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1494; Pub. L. 109–241, title III, § 310, July 11, 2006, 120 Stat. 529; Pub. L. 110–181, div. C, title XXXV, § 3525(a)(1), (b), Jan. 28, 2008, 122 Stat. 600, 601.)
- 2006Enacted · Pub. L. 109-304 · 120 Stat. 1494
- 2006Amended · Pub. L. 109-241 · 120 Stat. 529
- 2008Amended · Pub. L. 110-181 · 122 Stat. 600, 601
A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-304 on 2006-10-06.
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