When registering your pleasure boat, you may be unsure whether to document it with the United States Coast Guard (USCG) or register it with your state. Both options have their advantages and drawbacks, and understanding these can help you make an informed decision.
Understanding the Title Process
USCG Documentation
Registering your boat with the USCG involves obtaining a “Certificate of Documentation,” which acts as a federal title. This title demonstrates that your vessel is documented under the authority of the US government, which can be a significant advantage when traveling internationally. Customs officials recognize a USCG Certificate of Documentation (COD) from the National Vessel Documentation Center (NVDC) as proof of ownership and the boat’s origin. This documentation can also facilitate financing and transfer of ownership.
Vessel documentation is a national form of registration that has existed for many years, dating back to the 11th Act of the First Congress. It is available for vessels that measure at least five net tons and are wholly owned by a U.S. citizen or citizens.
Amanda Ross, who practices Maritime Law, says, “Vessel documentation is recommended if you plan to travel overseas with your vessel. Customs officials universally recognize a USCG COD as proof of ownership and authentication of the boat’s origin. If you travel to foreign waters, your COD immediately provides you with the protection and status that comes from the U.S. Government. This also facilitates a smooth entry and clearance in foreign ports.”
State Registration
On the other hand, registering your boat at the state level is similar to registering a car. The state provides a title that serves as the official record of ownership. Unlike the USCG documentation, this title is recognized at the state level and may involve a simpler process for those who intend to use their boat only within state waters.
If your boat is USCG-documented, you do not need to obtain a state title. The COD supersedes any state title requirements.
Note: If you have a dinghy or tender on your USCG-documented boat, you will still need to obtain a state registration for the dinghy (and possibly the motor in some states). Operating an unregistered vessel in Florida waters for 30 days can result in a second-degree misdemeanor charge. We have seen the Maryland DNR set up a dinghy inspection point at a popular anchorage in the Solomons and ticket unregistered dinghies as they headed to shore.
Specific State Requirements
Some states, such as Florida, require additional state registration even if your boat is already documented with the USCG. This dual requirement means you need to comply with both federal and state regulatory bodies, which might involve additional paperwork and fees.
Even if your boat is USCG Documented or registered in another state, most states require you to register if your boat will be used in the state for more than 90 days. This “90-day rule” is a common provision across many states. If you stay in a state for more than 90 days (common for boaters who winter in Florida), you may need to obtain a State Registration Certificate. In Florida, this is called a “Sojourners Permit.” This permit is available at any county tax office.
If you will stay in any state for more than 90 days, check local regulations to avoid being fined. Some counties in South Carolina, for example, can be aggressive in collecting these fees asking marinas to report unregistered boats.
Requirements for USCG Registration
To document your vessel with the USCG, the boat must measure at least five net tons and be wholly owned by a U.S. citizen. Most boats over 25 feet in length meet this requirement. The process requires submission of an application, proof of ownership, such as a builder’s certification or bill of sale, and payment of a fee.
Check the official Coast Guard Vessel Documentation Center with all of the reqiuments can be found here.
Registration Costs and Renewal
Costs
The initial documentation fee for USCG Documentation is $133 for one year for recreational vessels. If the boat has been registered before, and you are transferring the Certificate to a new owner (or if you move and need to change your hailing port), the fee is $84. Other fees may be involved if there is a loan on the boat or special conditions like a rebuilt vessel.
State registration fees differ significantly by state and are sometimes influenced by factors such as boat length, type, value, and homeport. For our 42-foot Trawler, we pay $250 a year in Florida. In South Carolina, it was over $3,000!
Renewal Frequency and Costs
USCG documentation needs renewal every year, with an associated fee of $26 for most vessels. Recently, the USCG has started offering multi-year renewals up to 5 years. There is no discount (5 years is $130, $26×5), but you don’t have to go through the paperwork every year. This renewal maintains the validity of your documentation and ensures compliance with federal laws.
State registration renewal periods vary, often annually or bi-annually, with renewal costs that can also fluctuate depending on state regulations.
Vessel Title Services
Many owners opt to use a Vessel Title Service for the initial registration. These services navigate the complex documentation process, handling paperwork and adherence to legal requirements efficiently. Engaging a reputable service can save time and reduce stress, although it represents an additional cost. If you are financing your boat purchase, the lender will typically handle this process. Most lenders will require USCG Documentation if the boat qualifies for it.
Unregistering a Boat
If you decide to discontinue using your boat or transfer ownership, you’ll need to officially unregister it. For USCG-documented vessels, this involves notifying the National Vessel Documentation Center (NVDC) and returning your Certificate of Documentation. Also, if your boat is wrecked or scrapped, you must notify the USCG if it has been documented.
State processes vary but generally require submitting a form to the local registration authority.
Beware of Scammy Third-Party Services
In the digital age, it’s not uncommon to encounter third-party services online that mimic official coast guard resources. These scammy entities often charge exorbitant fees for services available directly through the USCG or state authorities at a much lower cost. To avoid falling prey to scams, always verify the authenticity of any service you choose to use and rely on official USCG or state websites for guidance.
The USCG site will ALWAYS have a .mil domain extension like dco.uscg.mil.
To Register or Not To Register?
In summary, whether you opt for USCG documentation or state registration depends on factors like how and where you plan to use your boat, the legal requirements of your home state, and your personal preferences. By understanding the pros and cons of each choice, you can ensure that your boating adventures remain smooth and compliant.
Is your boat State Registered or USCG Documented?
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