Section 68.107 - Application procedure for vessels other than barges to be operated in coastwise trade without being documented(a) In addition to the items under § 67.141 of this chapter, the person that owns the vessel (other than a barge under § 68.109 ) and that seeks a coastwise endorsement under this subpart must submit the following to the National Vessel Documentation Center:(1) A certification in the form of an affidavit and, if requested by the Director, National Vessel Documentation Center, supporting documentation establishing the following facts with respect to the transaction from an individual who is authorized to provide certification on behalf of the person that owns the vessel and who is an officer in a corporation, a partner in a partnership, a member of the board of managers in a limited liability company, or their equivalent. The certificate must certify the following:(i) That the person that owns the vessel, the parent of that person, or a subsidiary of a parent of that person is primarily engaged in leasing or other financing transactions.(ii) That the person that owns the vessel is organized under the laws of the United States or a State.(iii) That none of the following is primarily engaged in the direct operation or management of vessels:(A) The person that owns the vessel.(B) The parent of the person that owns the vessel.(C) The group of which the person that owns the vessel is a member.(iv) That ownership of the vessel is primarily a financial investment without the ability and intent to directly or indirectly control the vessel's operations by a person not primarily engaged in the direct operation or management of vessels.(v) That the majority of the aggregate revenues of each of the following is not derived from the operation or management of vessels:(A) The person that owns the vessel.(B) The parent of the person that owns the vessel.(C) The group of which the person that owns the vessel is a member.(vi) That none of the following is primarily engaged in the operation or management of commercial, foreign-flag vessels used for the carriage of cargo for parties unrelated to the vessel's owner or charterer: (A) The person that owns the vessel.(B) The parent of the person that owns the vessel.(C) The group of which the person that owns the vessel is a member.(vii) That the person that owns the vessel has transferred to a qualified United States citizen under 46 U.S.C. app. 802 full possession, control, and command of the U.S.-built vessel through a demise charter in which the demise charterer is considered the owner pro hac vice during the term of the charter.(viii) That the vessel is financed with lease financing.(2) A copy of the charter, which must provide that the charterer is deemed to be the owner pro hac vice for the term of the charter.(b) The charterer must submit the following to the National Vessel Documentation Center: (1) A certificate certifying that the charterer is a citizen of the United States for the purpose of engaging in the coastwise trade under 46 U.S.C. app. 802.(2) Detailed citizenship information in the format of form CG-1258, Application for Documentation, section G, citizenship. The citizenship information may be attached to the form CG-1258 that is submitted under § 67.141 of this chapter and must be signed by, or on behalf of, the charterer.(c) Whenever a charter under paragraph (a) of this section is amended, the vessel owner must file a copy of the amendment with the Director, National Vessel Documentation Center, within 10 days after the effective date of the amendment.(d) Whenever the charterer of a vessel under paragraph (a) of this section enters into a sub-charter that is a demise charter with another person for the use of the vessel, the charterer must file a copy of the sub-charter and amendments to the sub-charter with the Director, National Vessel Documentation Center, within 10 days after the effective date of the sub-charter and the sub-charterer must provide detailed citizenship information in the format of form CG-1258, Application for Documentation, section G, citizenship.(e) Whenever the charterer of a vessel under paragraph (a) of this section enters into a sub-charter other than a demise charter with another person for the use of the vessel, the charterer must file a copy of the sub-charter and amendments to the sub-charter with the Director, National Vessel Documentation Center, within 10 days after a request by the Director to do so.(f) A person that submits a false certification under this section is subject to penalty under 46 U.S.C. 12122 and 18 U.S.C. 1001 .