Coast Guard Gives Guidance on Foreign Repairs and Compliance with Coastwise Trade Endorsement
Coast Guard Gives Guidance on Foreign Repairs and Compliance with Coastwise Trade Endorsement
As a consequence of a casualty during a voyage from Ketchikan, AK to Burnaby, B.C., Canada, the barge T/V DBL 55 sustained significant damage to the bottom plating and double bottom. It was towed to Vancouver to drydock but was not allowed to depart by Canadian authorities until the vessel was repaired.
The issue presented to the Coast Guard was whether the repairs constituted a foreign rebuild which would render the vessel ineligible to engage in U.S. coastwise trade. Pursuant to 46 C.F.R. § 67.177(a) “a vessel is deemed rebuilt when a major component of the hull or superstructure not built in the United States is added to the vessel.” But, under § 67.177(b)(3), it “is not considered rebuilt when work performed on its hull or superstructure constitutes 7.5 percent or less of the vessel’s steelweight prior to the work” if the hull and superstructure is steel or aluminum.
These tests are separate and distinct and must both be met.
A copy of the determination letter may be found at this link:
