Documenting your vessel with the Coast Guard offers several advantages, especially for larger boats and those intended for specific purposes. Here are some key benefits:
Clear Ownership & Title:
- Strong Proof of Ownership: Creates a definitive chain of ownership, providing legal protection in case of disputes or theft.
- Lien Perfection: Enables recording of liens and mortgages for transparency and easier financing.
- National Record: The National Vessel Documentation Center maintains a central record for easy verification.
International Recognition & Travel:
- Smoother Foreign Port Clearances: Recognized proof of ownership and vessel origin in foreign countries, simplifying paperwork and entry procedures.
- Flying the US flag: Demonstrates US nationality, potentially offering protection and assistance from US authorities abroad.
Other Advantages:
- Easier Financing: Documentation is often required for larger loans and preferred mortgages.
- Enhanced Resale Value: This can be seen as more attractive to potential buyers due to clear title and national recognition.
- Potential Tax Benefits: Documentation may offer tax advantages depending on usage and location.
However, it’s important to remember that:
- Not all Vessels Qualify: Only vessels exceeding five net tons can be documented.
- Higher Initial Costs: Documentation involves application fees and ongoing renewals compared to state registration.
- Additional Regulations: May require adhering to stricter safety and documentation standards.
Weighing the Pros & Cons:
Consider your vessel size, intended usage (international travel, commercial activity), and financing needs before deciding. If these benefits align with your plans, Coast Guard documentation might be a valuable investment.
What does it cost?
As of June 2023, an initial COD costs $133. A full schedule of fees and services is listed on the NATIONAL VESSEL
DOCUMENTATION CENTER (NVDC) website and click “Fee Schedule”.
Additional Resources:
- US Coast Guard National Vessel Documentation Center: https://www.dco.uscg.mil/Our-Organization/Deputy-for-Operations-Policy-and-Capabilities-DCO-D/National-Vessel-Documentation-Center/
- Benefits of Coast Guard Documentation – OceanPoint Marine Lending: https://bluewateryachtsales.com/news/top-reasons-to-document-your-vessel/
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