USCG Documentation vs. State Registration: What California Boat Owners Need to Know

Posted on November 14, 2024 by Local Fish

In California, boat owners have the option to either document their vessels federally through the United States Coast Guard (USCG) or register them with the state. Here are some common reasons people choose documentation over state registration:

  1. Commercial Fishing Endorsements: Many commercial fishing vessels need to be documented by the USCG to qualify for a commercial fishing endorsement, which is required for certain fishing permits. Documentation is often a prerequisite for operating in federal waters beyond 3 miles from shore.
  2. Proof of Nationality: A documented vessel is considered a U.S. vessel and can operate under the U.S. flag internationally. This status provides legal protections and may simplify entry into foreign ports.
  3. Ownership Protection and Financing: Federal documentation offers a standardized title, which lenders prefer for collateral, making it easier to finance the purchase of a boat. The USCG documentation also provides certain protections to ownership claims, making it harder for others to claim ownership.
  4. Legal Requirement for Larger Vessels: Any vessel over five net tons that is used in commercial activities is required to be documented by the USCG. Most commercial fishing vessels meet this threshold.
  5. Exemptions from State Registration Fees: Federally documented vessels are exempt from certain state registration fees, though they may still be required to pay state property taxes or other fees.
  6. Prestige and Standardization: Some boat owners choose documentation because of its formal nature and standardized practices, which can add value or credibility to the vessel, especially in commercial and high-value recreational markets.

While state registration can be simpler and more economical for smaller recreational vessels, documentation offers benefits for commercial and larger vessels needing national recognition, financing, and compliance with federal requirements.

For California State Registration visit this link.

For USCG Documentation visit this link.