Richardson-DE-vsl-do C-analysis_19-July.p Df.pdf

The State of Delaware has been registering vessels operating overseas, suspected of being involved in illegal activities, despite federal laws and regulations. The issue arises from conflicting vessel documentation regulations and statutes. 46 U.S.C. § 12102 requires vessels to have a certificate of documentation with an endorsement for their trade, while 46 CFR part 67 seems to allow vessels to document with a state and conduct foreign trade. However, a closer analysis of the regulations and statutory history reveals that a vessel must be documented and hold a registry endorsement to conduct foreign trade. The Coast Guard's definition of "operate" and "State of Principal Operations" means that a state-registered vessel must operate in state waters, negating the exemption in 46 CFR 67.9. A vessel not operating in state waters may not register with a state and must be documented with the US Government to fly the US flag. The regulatory history shows that the Coast Guard's authority to document vessels was transferred from the Customs Bureau in 1967, and the Vessel Documentation Act of 1980 simplified and consolidated documentation laws, but did not change the requirement for vessels engaged in foreign trade to be registered.