CODIFICATION: In § 1.8, footnote 7 appended to paragraph (a) was amended to read as follows: "The national holidays are January 1, February 22, May 30, July 4, the first Monday in September, November 11, the fourth Thursday in November, and December 25. If a holiday falls on Saturday the day immediately preceding such Saturday will be observed (5 U.S.C. 87c). Other days may be designated as national holidays by Executive Order of the President.", T.D. 55609, 27 F.R. 4245, May 5, 1962.

PART 2-MEASUREMENT OF VESSELS

seakeeping1 capabilities, or strength conditions under varying conditions and requirements of the vessel's operation and that the space claimed for exemption is necessary to and available at all times for any one of these purposes. An application for exemption of waterballast spaces in excess of 30 percent of the vessel's gross tonnage, calculated without any allowance for water ballast, shall be submitted for approval to the Commissioner of Customs, accompanied by a statement in writing from the vessel owner or his representative as to the circumstances of use or construction of the vessel which make such an allowance necessary and proper and verifying that the conditions specified in this paragraph have been and are met. Any change in the facts on the basis of which a water-ballast exemption is granted under this section shall be promptly reported to the collector of customs for his determination as to whether there has been a change in the use of spaces requiring an adjustment of tonnage under § 2.64.

[Subparagraph (3) added, T.D. 55628, 27 F.R. 5093, May 30, 1962]

Sec.

2.43 Enclosed spaces exempted from inclusion in gross tonnage.

3.17

[Amend

[Amended]

(g) No provisional certificate shall be issued to any vessel abroad which at the time of its transfer to a citizen of the United States was documented as a vessel of the United States. Such a vessel may be redocumented at a port in the United States upon compliance with the requirements outlined in § 3.35 or if not so redocumented while abroad, it shall nevertheless be entitled to all the privileges and benefits of a vessel of the United States up to and for the purpose of its first arrival thereafter within a customs collection district or in a port of documentation outside any such customs collection district. (Section 1, 38 Stat. 1193, as amended, R.S. 4166, as amended; 46 U.S.C. 12, 35.)

[Paragraph (g) amended, T.D. 55575, 27 F.R. 1886, Feb. 28, 1962]

§3.11 Enrollment and license; coasting trade and fisheries.

(b) A vessel engaged exclusively in the cod fishery shall be licensed for that fishery. A vessel engaged in whaling shall be licensed for the whale fishery. A vessel engaged in taking fish of any other description shall be licensed for the mackerel fishery. A vessel licensed for the fisheries shall not be deemed to be used in employment for which not licensed solely because it occasionally takes on board on the high seas and transports without a monetary consideration to a port of the United States the catch of another fishing vessel of the United States. A vessel which engages in both the coasting trade and fishing (other than whaling) may be licensed for the "coasting trade and mack

(d) No vessel of more than 500 gross tons which has been rebuilt and has thereby lost its coastwise privileges (see § 3.2(f)) shall be documented for nor permitted to engage in the coastwise trade. When it is claimed that any such rebuilt vessel has not lost its coastwise privileges by virtue of the provisions of section 4 of the Act of July 5, 1960 (sec. 4, 74 Stat. 321), the owner in support of such claim shall submit to the collector of customs concerned with the other papers required by paragraph (b) of this section a certified copy of the contract for rebuilding, showing the date of execution, and a certificate of the builder showing the date the work of rebuilding commenced and the date upon which such work was completed.

[Paragraph (d) amended, T.D. 55347, 26 F.R. 2641, Mar. 29, 1961]

§ 3.30 Exchange of documents.

CODIFICATION: Footnote 19 appended to § 3.30 (a) was amended as follows, T.D. 55781, 27 F.R. 12475, Dec. 18, 1962:

"19 The requirement of subsection O(a) of the Ship Mortgage Act, 1920 (46 U.S.C. 961 (a)), that the document of a vessel covered by a preferred mortgage may not be surrendered without the approval of the Maritime Administration and the mortgagee, does not apply to (1) a renewal of license, including a case in which the former document is replaced by reason of the fact that all renewal spaces are filled; (2) a change of document incident to a change of trade where the own

ership and home port remain the same; (3) a change to a permanent document on arrival of a vessel at its home port under a temporary document; (4) the replacement or renewal of a lost, mislaid, or mutilated document where the ownership and home port remain the same; (5) the replacement of a document issued in error or on an improper form; or (6) the replacement of a document of a vessel owned by a corporation when the president or secretary whose name appears thereon dies, is removed, or resigns and there has been no change in ownership. A document may be deemed to be mutilated within the meaning of item (4) above when it has been partially burned, torn, soiled, or otherwise defaced so as to be unsuitable for the purpose for which it was issued."

§ 3.35 Sale abroad.

(a) A documented vessel which, while outside the limits of a customs collection district of the United States and not in any port designated as a port of documentation outside any such district, is sold or transferred in whole or in part to a citizen of the United States may be documented anew as a vessel of the United States at the port designated as the vessel's home port by the new owner or owners in accordance with the requirements of § 3.17 of this part. Such a document shall be issued upon compliance with all the applicable requirements contained in this part, and upon surrender of the previous document at the new home port except that (1) any document so issued shall be a permanent document and (2) the document may be issued without first requiring surrender of the outstanding document to the collector in a case in which the vessel is at sea at the time. In such latter case, the new document shall be forwarded to the United States foreign service officer at the vessel's foreign port of call or the collector of customs at a domestic port of call upon request of the owner or his agent. The foreign service officer or the collector of customs to whom the new document is forwarded shall deliver that document to the vessel upon the vessel's arrival in port and upon surrender of the previous document, which shall be forwarded by that officer to the collector at the vessel's home port.

(b) A documented vessel which has been sold or transferred in whole or in part to a citizen while abroad and which is not redocumented under paragraph (a) of this section shall nevertheless be

entitled on her first arrival thereafter to all the privileges of a vessel of the United States. (R.S. 4166, as amended; 46

U.S.C. 35.)

(R.S. 161, section 2, 23 Stat. 118, as amended; 5 U.S.C. 22, 46 U.S.C. 2) [T.D. 55575, 27 F.R. 1886, Feb. 28, 1962]

§ 3.37 Preferred Mortgages. (a) *

CODIFICATION: In footnote 24, appearing to text of § 3.37(a), that portion of paragraph (a) preceding subparagraph (1) thereof was amended to read as set forth below, T.D. 55519, 26 F.R. 11362, Dec. 1, 1961.

24 (a) A valid mortgage which at the time it is made, includes the whole of any vessel of the United States (other than a towboat, barge, scow, lighter, car float, canal boat, or tank vessel, of less than twenty-five gross tons), shall, in addition, have, in respect to such vessel and as of the date of the compliance with all the provisions of this subsection, the preferred status given by the provisions of section 953 of this title, if—

(b) A preferred mortgage may not be placed upon any vessel which is not a documented vessel, nor upon any vessel of less than twenty-five gross tons 248 which is a towboat (including tugs and other vessels used for towing), barge, scow, lighter, car float, canal boat, or tank vessel. It may cover more than one vessel, but may not be limited to a part of any vessel.

CODIFICATION: Paragraph (b) was amended, and related footnote 24a thereto was added, T.D. 55519, 26 F.R. 11362, Dec. 1, 1961.

§ 3.40 Frontier enrollment and licenses. [Amended]

(b) In similar cases frontier enrollments shall bear the same endorsements as are placed on registers. When the

24a Section 1(b), Public Law 87-303, approved September 26, 1961 (75 Stat. 661), provides that the amendment reducing the minimum tonnage for preferred mortgages on certain classes of vessels from 200 to 25 gross tons under subsection (D) of the Ship Mortgage Act, 1920, as amended (46 U.S.C. 922), shall not apply to (1) any mortgage in existence on the date of enactment or (2) any mortgage placed on a vessel after the date of enacement under a mortgage on such vessel in existence on the date of enactment so long as such existing mortgage remains undischarged.

CODIFICATION: In § 3.40, paragraph (b) was amended, T.D. 55757, 27 F.R. 11458, Nov. 21, 1962.

§ 3.41 Transfer from frontier enrollment and license.

(a) Except as stated in § 3.40 (d), when a vessel under frontier enrollment and license is to proceed to sea, directly or by way of an intermediate port, the vessel shall be required to surrender the frontier document. It may be issued a register if bound on a foreign voyage partly by sea, unless it is a vessel owned by a corporation which is a citizen of the United States as defined in § 3.19 (a) (4) (see §§ 3.2(e) and 3.10), or, if qualified, may be issued an enrollment and license when proceeding from one United States port to another by way of the St. Lawrence River and the sea without touching at any foreign port. A vessel is not considered to have touched at a foreign port by reason of being boarded by Canadian authorities for the purposes of inspecting the vessel and taking a passing report, provided that no business is transacted at the port or place of boarding. A vessel under frontier enrollment and license may retain that document when proceeding by way of the Hudson River to any United States port without going to sea.

[Paragraph (a) amended, T.D. 55394, 26 F.R. 4942, June 3, 1961]

§ 3.53 Yacht privileges and obligations. CODIFICATION: In § 3.53(d), “Australia" was added in alphabetical sequence to the list of countries, T.D. 55641, 27 F.R. 5909, June 22, 1962. REGISTRATION OF PRIVATE CODE SIGNALS, HOUSE FLAGS, AND FUNNEL MARKS

§ 3.82 Fee for registering a house flag or funnel mark, or both.

CODIFICATION: In the first sentence of §3.82 "$25" was changed to "$35" T. D. 55466, 26 F.R. 8536, Sept. 13, 1961.

23

cate, a post entry," or other suitable explanation of the corrective action taken (see § 4.34). Unless the collector is satisfied that the discrepancies were the result of clerical error or other mistake and that there has been no loss to the revenue, applicable penalties under section 584, Tariff Act of 1930, as amended, shall be assessed, and the facts shall be reported to the collector for the port where the vessel's bond was filed for any necessary action against the bond. For the purpose of assessing such penalties, the value of the merchandise shall be computed as prescribed in § 23.12 of this chapter. The fact that the master or owner had no knowledge of a discrepancy shall not relieve him from the penalty.

(b) A correction in the manifest shall not be required in the case of bulk merchandise if the collector is satisfied that the difference between the manifested quantity and the quantity unladen, whether the difference constitutes an overage or a shortage, is an ordinary and usual difference properly attributable to absorption of moisture, temperature, faulty weighing at the port of lading, or other similar reason. A correction in the manifest shall not be required because of discrepancies between marks or numbers on packages of merchandise and the marks or numbers for the same packages as shown on the manifest of the importing vessel when the quantity

23 44

• If any merchandise described in such manifest is not found on board the vessel or vehicle the master or other person in charge or the owner of such vessel or vehicle shall be subject to a penalty of $500: Provided, That if the collector shall be satisfiled that the manifest is incorrect by reason of clerical error or other mistake and that no part of the merchandise not found on board was unshipped or discharged except as specified in the report of the master, said penalties shall not be incurred.

(Tariff Act of 1930, sec. 584, as amended; 19 U. S. C. 1584)

24 "If there is any merchandise or baggage on board such vessel which is not included in or which does not agree with the manifest, the master of the vessel shall make a post entry thereof, and mail or deliver a copy to such employee as the Secretary of the Treasury shall designate and for failure so to do shall be liable to a penalty of $500." (Tariff Act of 1930, sec. 440, as amended; 19 U. S. C. 1440)

(b) Entry on customs Form 7535 shall be made for such equipment or repairs. Such entry shall show the last sailing date from each country at which repairs were made on the particular voyage. Estimated duties shall be deposited or a bond on customs Form 7567 or 7569 given therefor before the vessel shall be allowed clearance, except that—

(1) No entry or bond shall be required with respect to items which the collector is satisfied are clearly within the purview of R.S. 3115(3), as amended, and

(2) Vessels owned by the United States, although subject to the provisions of section 466, Tariff Act of 1930, as amended, shall be allowed to proceed without such deposit of duties or filing of a bond, if operated by the Maritime Administration or other agency of the United States or if operated under an agreement providing that such an agency shall pay duties accruing under section 466. Vessels owned by the United States and operated by private parties who are liable by agreement for duties accruing under section 466 shall be treated in all respects the same as privately-owned vessels.

[Paragraph (b) amended, T.D. 55625, 27 F.R. 4864, May 24, 1962]

TONNAGE TAX AND LIGHT MONEY

§ 4.21 Exemptions from tonnage taxes. CODIFICATION: In § 4.21 (a) (15), "Ryukyu Islands" was inserted between "American Samoa" and "the islands of Guam," T.D. 55406, 26 F.R. 5670, June 24, 1961.

AUTHORITY NOTE: The authority citation in parentheses following § 4.21 is corrected to read as follows: (Sec. 441, 46 Stat. 712, as amended, R.S. 4214, as amended, 4219, as amended, 4220, 2793, as amended, 2792, as amended, 4221, 4225, as amended, 4226, sec. 1, 39 Stat. 286, 36 Stat. 234, R.S. 4227; 19 U.S.C. 1441, 46 U.S.C. 103, 121-125, 128-130, 132, 135).