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Benefits of Documenting a Vessel with the Coast Guard?

Jacques

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:

Hi, I’m Jacques

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