Expanded Hull Identification Number and New Requirements for Certificates of Origin

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 181

[CGD 92-065]

RIN 2115-AE37

Expanded Hull Identification Number and New Requirements for

Certificates of Origin

AGENCY: Coast Guard, DOT.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Coast Guard proposes amending the regulations concerning

vessel Hull Identification Numbers (HIN) and establishing new

regulations requiring Certificates of Origin for new vessels offered

for sale in the United States. The Coast Guard is proposing the

regulations in order to provide additional information identifying

vessels and establishing evidence of vessel ownership to aid in marine

investigations, deter theft, and provide a more useful vessel

identifier for the purposes of developing the vessel identification

system, as required by legislation. The Coast Guard also proposes to

make several editorial corrections to its HIN regulations.

DATES: Comments must be received on or before September 6, 1994.

ADDRESSES: Comments may be mailed to the Executive Secretary, Marine

Safety Council (G-LRA/3406) (CGD 92-065), U.S. Coast Guard

Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, or may

be delivered to room 3406 at the above address between 8 a.m. and 3

p.m., Monday through Friday, except Federal holidays. The telephone

number is (202) 267-1477. Comments on collection of information

requirements must be mailed also to the Office of Information and

Regulatory Affairs, Office of Management and Budget, 725 17th Street,

NW., Washington, DC 20503, Attn: Desk Officer, U.S. Coast Guard.

The Executive Secretary maintains the public docket for this

rulemaking. Comments will become part of this docket and will be

available for inspection or copying at room 3406, U.S. Coast Guard

Headquarters.

A copy of the material listed in ``Incorporation by Reference'' of

this preamble is available for inspection at room 1505, U.S. Coast

Guard Headquarters.

FOR FURTHER INFORMATION CONTACT:

Mr. Alston Colihan, Auxiliary, Boating, and Consumer Affairs Division,

(202) 267-0981.

SUPPLEMENTARY INFORMATION:

Request for Comments

The Coast Guard encourages interested persons to participate in

this rulemaking by submitting written data, views or arguments. Persons

submitting comments should include their name and address, identify

this rulemaking (CGD 92-065) and the specific section of this proposal

to which each comment applies, and give a reason for each comment. The

Coast Guard requests that all comments and attachments be submitted in

an unbound format suitable for copying and electronic filing. If not

practical, a second copy of any bound materials is requested. Persons

wanting acknowledgement of receipt of comments should enclose a

stamped, self-addressed postcard or envelope.

The Coast Guard will consider all comments received during the

comment period. It may change this proposal in view of the comments.

The Coast Guard plans no public hearing. Persons may request a

public hearing by writing to the Marine Safety Council at the address

under ADDRESSES. If it determines that the opportunity for oral

presentations will aid this rulemaking, the Coast Guard will hold a

public hearing at a time and place announced by a later notice in the

Federal Register.

Drafting Information

The principal persons involved in drafting this document are Mr.

Alston Colihan, Project Manager, and Helen Boutrous, Project Counsel,

Office of Chief Counsel.

Background and Purpose

The Secretary of Transportation is required to establish the Vessel

Identification System (VIS) (46 U.S.C. chapters 125, 131 & 313) for use

by the public and law enforcement officials. The Secretary has

delegated to the Commandant, U.S. Coast Guard, the authority to

implement VIS. VIS will provide a nationwide pool of vessel and vessel

owner information that will help in identification and recovery of

stolen vessels and deter vessel theft. This rulemaking would aid in the

development of VIS by expanding the existing 12 character HIN to

include certain vessel-specific information and thereby create a more

useful vessel identification number. Further, requiring vessel

manufacturers and importers to provide a Certificate of Origin with

each vessel produced or imported for the purposes of sale would ensure

the availability of documentation certifying this information and

establishing a chain of ownership.

Discussion of Proposed Amendments

Investigations of lost and stolen vessels depend in large part on

the proper authorities' ability to identify a vessel and establish a

chain of ownership. The proposed regulations would aid in this pursuit

by expanding the current 12 character HIN to include detailed

information about each vessel. In addition, a check digit in the

expanded HIN would make alteration of an HIN more difficult thereby

helping to prevent fraud in the sale of vessels. The proposed

regulations would also require that vessel manufacturers provide a

Certificate of Origin certifying the truth about certain information in

the HIN and for use as the first document in the paper trail

establishing proof of vessel ownership.

Removal of the definition for ``model year'' would clear up a

drafting error which has existed since the last time the HIN

regulations were amended in 1984. Finally, removal of the references to

``State Boating Law Administrator'' in 33 CFR 181.31(c) would allow

States which use their Department of Motor Vehicles as vessel numbering

and titling authorities to issue HINs to individuals building their own

vessels.

The following discusses the proposed changes to 33 CFR part 181:

(a) ``Model Year'' Definition

The definition of ``model year'' would be removed from Sec. 181.3.

Up until 1984 the regulations allowed for two methods of indicating the

date of manufacture in the last four characters of the 12 character

HIN. When those two formats were devised, it was the Coast Guard's

understanding that the new model year would not commence prior to

August. Some manufacturers complained that they wanted to vary the

introduction date of the new model year from year to year, but that

they were prevented from doing so by the HIN regulations which defines

model year as the period beginning August 1 of any year and ending on

July 31 of the following year. The Coast Guard amended the HIN

regulations in 1984 to give vessel manufacturers the freedom to

designate model year in the HIN as they requested. The Coast Guard

amended Sec. 181.25(a) to require characters 11 and 12 to indicate the

model year using the last two characters of the model year such as

``84'' for 1984. However, due to a drafting error, the Coast Guard

failed to delete the outdated and superfluous definition of ``model

year.'' The proposed amendments would remove the definition of ``model

year'' from part 181.

(b) Incorporation by Reference

The following material would be incorporated by reference in

Sec. 181.4:

International Organization for Standardization (ISO) Standard 3166

``Codes for the representation of names of countries.'' International

Organization for Standardization (ISO) Standard 1073/I-1976

``Alphanumeric character sets for optical recognition--Part I:

Character Set OCR-A--Shapes and dimensions of the printed image.''

Copies of the material are available for inspection where indicated

under ADDRESSES. Copies of the material are available at the addresses

in Sec. 181.4. Before publishing a final rule, the Coast Guard will

submit this material to the Director of the Federal Register for

approval of the incorporations by reference.

ISO Standard 3166 contains two character alphabetic codes which

would be used to indicate the ``country code'' in the expanded HIN. ISO

Standard 1073/I-1976 prescribes shapes and sizes of alphanumeric

characters for optical character recognition (OCR) systems, which means

that the characters are both human and machine readable.

(c) Nineteen Character Hull Identification Number

The existing Hull Identification Number (HIN) is a unique 12

character serial number required on each recreational vessel

manufactured in or imported into the United States for the purposes of

sale. The Coast Guard assigns the first three characters, a

Manufacturer Identification Code (MIC) which identifies the

manufacturer or importer; characters four through eight are a

manufacturer serial number; characters nine and ten indicate date of

certification for vessels subject to safety standards or the date of

manufacture for vessels not subject to standards; and characters eleven

and twelve indicate the model year.

There are two serious problems involving the current 12 character

HIN format. Thieves can alter an HIN and ``launder'' a stolen vessel in

States with ineffective titling and registration programs. Similarly,

the last four characters in many HINs are fraudulently altered as a

means of misrepresenting vessels as ``newer.''

As early as May 1987, the National Auto Theft Bureau (NATB), which

is supported by more than 600 casualty insurance companies, recommended

that the Coast Guard adopt a 17 character HIN format (similar to the

format required for the Vehicle Identification Number [VIN] on an

automobile) as a means of detecting and deterring vessel theft. Each

VIN contains certain characters which describe features such as body

style and engine type which are specific to the automobile to which the

VIN is assigned. A VIN also contains a check digit which assures the

integrity of the other characters in a VIN. According to the NATB and

officials of the National Association of State Boating Law

Administrators (NASBLA), the additional HIN characters would lead to

increased recovery of stolen vessels and more successful enforcement

efforts, thereby deterring would-be thieves.

During meetings with the International Standards Organization (ISO)

some ISO member countries expressed a desire for the Coast Guard to

include a two character country of MIC registration code as part of the

expanded HIN format to distinguish between MICs issued by different

foreign countries. The Coast Guard agrees that including the two

character country of MIC registration code in the proposed HIN would be

appropriate.

The proposed expanded HIN would consists of 19 characters. The

additional seven characters would indicate country of MIC registration,

length, hull material, principal means of propulsion, vessel type and a

check digit. The expanded HIN with its check digit would reflect

additional information useful to law enforcement authorities

investigating vessel thefts and provide a useful means of identifying

vessels in VIS.

Section 181.25 would be revised to require that each of the Hull

Identification Numbers prescribed by Sec. 181.23 must consist of 19

characters uninterrupted by slashes, hyphens or spaces:

(1) Characters one and two would be the two character alphabetic

``country code'' from ISO Standard 3166. The country code for

Manufacturer ID Codes the Coast Guard assigns in the United States, for

example, would be ``US.''

(2) Characters three through five would be the existing

manufacturer identification code the Coast Guard assigns to the vessel

manufacturer in accordance with Sec. 181.31(a).

(3) Characters six through ten would be the serial number the

manufacturer currently assigns in accordance with Sec. 181.25(b).

(4) Characters eleven and twelve would indicate date of

certification for vessels subject to safety standards or the date of

manufacture for vessels not subject to standards in accordance with the

existing format specified in Sec. 181.25(c).

(5) Characters thirteen and fourteen would indicate the model year

in accordance with the existing format specified in Sec. 181.25(d).

(6) The fifteenth character would indicate overall length of the

vessel using a corresponding letter of the English alphabet. The

character, ``A,'' would indicate a vessel with a hull length of less

than six feet; ``B'' would indicate a vessel with a hull length of six

feet to 10 feet, 11 inches; ``C'' would indicate 11 feet; ``D'' would

indicate 12 feed, and so on. The character, ``Z'', would indicate a

vessel with a hull length of more than 31 feet. Inches would not be

included in the measurement of length, therefore, 15 feet, 10 inches is

15 feet and 16 feet, 2 inches is 16 feet.

(7) The sixteen character would indicate hull material using a

corresponding Arabic numeral. Arabic numerals one through eight would

indicate aluminum, ferrocement, fiber reinforced plastic (FRP),

flexible fabric, foam, plastic, steel and wood, respectively.

(8) The seventeenth character would indicate the principal means of

propulsion of the vessel using a corresponding Arabic numeral. Arabic

numerals one through nine would indicate air propeller, bracket mounted

outboard, inboard, inboard jet, inboard/outdrive, nonpowered, outboard,

sail and sail with inboard auxiliary, respectively. Footnotes to a

table in this section would distinguish between which Arabic numerals

to use to indicate nonpowered vessels, sailboats and sailboats with

auxiliary power.

(9) The eighteenth character would indicate the type of vessel

using a corresponding Arabic numeral. Arabic numerals one through nine

would indicate air cushion vehicle; canoe, kayak, sailboard or

surfboard; inflatable; monohull/cabin configuration; monohull/closed

bow; monohull/open bow; multihull/cabin or closed bow; multihull/open

deck; and personal watercraft, respectively. Footnotes to a table in

this section would distinguish between which Arabic numerals to use to

indicate the vessel types described above.

(10) The nineteenth character would be a check digit determined by

performing certain arithmetic calculations involving the previous 18

characters. Characters consisting of letters of the English alphabet

would be converted to corresponding numerical values. A diagram in the

section would show how the calculations should be performed. The Coast

Guard has developed a computer program which calculates the check digit

and is available to any vessel manufacturer with a computer. The Coast

Guard has also developed several work sheets to help determine the HIN

for a vessel which are also available.

(d) Reference to State Boating Law Administrator

Section 181.31 prescribes the regulations on the assignment of a

Manufacturer Identification Code (MIC) to each recreational vessel

manufacturer and importer. According to Sec. 181.31(c), persons who are

building vessels for their own use and not for the purposes of sale,

must obtain an entire Hull Identification Number from the State Boating

Law Administrator of the State where the vessel will be principally

used, in lieu of applying for a MIC. A number of the States use their

Department of Motor Vehicles (DMV) for numbering and titling of vessels

and the DMV would issue a State HIN. Under the proposed amendments,

references to ``State Boating Law Administrator'' would be removed from

the section and the words ``the issuing authority of the State'' would

be added in their place.

(e) Certificate of Origin

The Secretary is required to include information assisting law

enforcement officials in VIS (46 U.S.C. 12501(b)(6)). A Certificate of

Origin (COO) is a document issued by a product's manufacturer

certifying to the truth of certain facts. Many States require vessel

owners to provide a COO before they will issue a title or register and

number a vessel. Thus, a COO is usually the first document in the paper

trail identifying a vessel and establishing proof of ownership.

Unfortunately, many vessel manufacturers do not issue COOs for vessels

they manufacture or they issue COOs which many States consider

unacceptable.

A purchaser's possession of a standardized COO for a vessel would

ensure that documentation of the vessel's chain of ownership is

established. This would aid law enforcement investigations by providing

a means to demonstrate vessel ownership as well as providing a means to

certify vessel information that could be used in the development of

VIS.

Under the proposed amendments the Coast Guard would add a new

Subpart D--``Certificates of Origin for Boats.'' The proposed

amendments would require manufactures and U.S. importers of foreign-

built vessels to provide a completed COO with each vessel manufactured

or imported. The issuing authorities in the States would be given the

option of issuing COOs to individuals building their own vessels or

exempting them from the requirement altogether.

Discussion of Proposed Form

The Coast Guard is considering the development of a standardized

COO form. For the reader's convenience, a prototype of a proposed form

is reproduced in appendix A. This form should be considered in

conjunction with the proposed regulations. Comments or suggestions

pertaining to the format or content will be welcomed. Also, the Coast

Guard specifically seeks comments on the most cost efficient manner to

create and distribute the forms. Any proposed form will be submitted to

the Office of Management and Budget for approval prior to publication

of the final rule.

Discussion of Requirement for Certificate of Origin

A COO furnished with a recreational vessel in accordance with

Sec. 181.43 would:

(a) Be signed by or on behalf of the vessel manufacturer; and

(b) Recite the following:

(1) The vessel's 19 character hull identification number assigned

in accordance with Sec. 181.25;

(2) The date on which the COO is issued;

(3) The model name or numerical designation for the vessel;

(4) The length of the vessel in feet and inches;

(5) The beam of the vessel in feet and inches;

(6) Whether the vessel is for commercial or recreational use;

(7) The name and address of the dealer or individual to whom the

vessel is first transferred; and

(8) The place the vessel is constructed (plant location).

Solicitation of Views

The Coast Guard is particularly interested in receiving comments on

the following issues:

(a) The majority of the recreational vessel manufacturers are small

volume builders who lack computers and cannot use a computer program

developed by the Coast Guard. These manufacturers may have a difficult

time determining the check digit in the proposed 19 character Hull

Identification Number. When using simple arithmetic, those calculations

may take as long as 15 minutes per vessel. Is 15 minutes a reasonable

estimate for performing the calculation?

(b) Should the Coast Guard consider expecting certain classes of

low cost vessels from the 19 character HIN, or do States which number

all watercraft insist on universal application of this requirement?

(c) Are there other methods for calculation of the check digit

which are not as time consuming and will still assure the integrity of

the other characters in an HIN?

(d) The proposed regulations will require a COO for each new vessel

manufactured or imported. Since a COO is unique to the vessel to which

it is assigned, there may be some additional requirements associated

with ensuring that the proper COO accompanies each vessel, particularly

for importers of inflatables and similar, high volume, low cost vessels

which are shipped in bulk containers. As a result, the COO requirement

in the proposed regulations may require change in the manner in which

small, high volume vessels are packaged for shipment. Should the Coast

Guard consider excepting from the COO requirement certain classes of

low cost vessels, or vessels involving special problems associated with

the manner in which they are shipped?

(e) Do the States which number all watercraft insist on universal

application of the COO requirement?

(f) A prototype of a proposed COO form is reproduced in appendix A.

The Coast Guard proposes issuing a COO template to all boat

manufactures and importers which they could copy to make COO forms for

each boat. The Coast Guard would partially complete the COO templates

with each manufacturer (or importer) name and address and the first

five characters of the HIN as a means for minimizing information

collection burdens.

However, the Coast Guard is seeking comments on whether the

proposed COO contains sufficient security features and information to

make it an effective document. The NASBLA Numbering and Titling

Committee has recommended, through a mailing to the Coast Guard, that

the COO form be machine readable utilizing the OCR-A font which

provides the criteria for character set and print quality for optical

character recognition; be uniform in all jurisdictions; and conform to

the following format, standards, security, and specifications:

(1) Have an engraved border produced from banknote engraved

artwork;

(2) Feature a prismatic, i.e., rainbow printing which is used as a

deterrent to color copying, and/or a copy void pantograph, i.e., the

word ``void'' appears when the document is copied;

(3) Be printed using erasable fluorescent background inks which

fluoresce under ultraviolet light and react to any attempt to erase

information;

(4) Include a background security design consisting of a

repetitious pattern which hinders counterfeiting efforts;

(5) Be printed on sensitized security paper that is reactive to

chemicals commonly used to alter documents;

(6) Be printed on non optical brightener paper without added

optical brighteners which will not fluoresce under ultraviolet light;

(7) Include a microline--a line of small alpha characters in

capital letters which requires a magnifying glass to read;

(8) Bear a pre-printed consecutive number for control purposes;

(9) Consist of complex colors which are developed by using a

mixture of two or more of the primary colors (red, yellow and blue) and

black if required; and

(10) Contain a security thread with or without a watermark, and/or

an intaglio print with or without a latent image, and/or a security

laminate.

The Coast Guard's preliminary investigations indicate that due to

the high cost of creating forms meeting the NASBLA suggested

requirements, the Coast Guard could not absorb the cost of printing COO

forms meeting the NASBLA security features. The Coast Guard does not

have the authority to charge manufacturers to reimburse the Coast Guard

for its expenditures on COO forms. Therefore, if the Coast Guard were

to adopt the NASBLA recommended security features, manufacturers would

be responsible for creating or purchasing the forms on their own.

Are there interested parties who believe the NASBLA recommended

security features would be appropriate for a State issued certificate

of title, but are excessive for a manufacturer issued certificate of

origin?

Some manufacturers build thousands of vessels annually, while

others may build as few as a single vessel annually. What do printers

estimate would be the costs to various volume boat manufacturers for

creating and printing forms meeting the NASBLA recommended security

features?

If the Coast Guard were able to obtain authorized funding, what

would be the cost to the Coast Guard for creating, printing, partially

completing, and distributing forms meeting the NASBLA recommended

security features to various volume boat manufacturers?

Once the contents and security features of a finalized COO form are

developed, based upon comments received, what are the most equitable

and cost-efficient methods for creating, printing, and distributing COO

forms to boat manufacturers?

(g) The proposed Sec. 181.47 addresses the subject of duplicate COO

forms.

(1) Who should be able to apply for a duplicate COO form from a

boat manufacturer?

(2) What information should a duplicate COO contain?

(3) Should an affidavit or other type of proof be required as a

condition to obtaining a duplicate COO form?

(4) If a duplicate COO must contain the same information as an

original, should the regulations require the manufacturer to retain a

copy of each original COO form? For how long?

Regulatory Assessment

This proposal is not a significant regulatory action under

Executive Order 12866, and has not been reviewed by the Office of

Management and Budget. It is also not significant under the

``Department of Transportation Regulatory Policies and Procedures'' (44

FR 11040; February 26, 1979). The Coast Guard expects the economic

impact of this proposal to be so minimal that a Regulatory Assessment

is unnecessary.

This project would benefit law enforcement officers by aiding in

deterrence and detection of vessel fraud and theft. An estimated

2,000,000 recreational vessels are manufactured or imported annual.

Issuing authorities in the States issue an estimated 17,000 HINs to

individuals building their own vessels annually. This means an

estimated 2,017,000 HINs are affixed annually. The estimated average

cost for the affixing the existing 12 character HIN is $.50 per vessel.

The estimated cost of expansion to a 19 character format is an

additional $.25 per vessel, for a total cost of approximately $.75 per

vessel.

The Coast Guard is soliciting specific comments on the estimated

costs for COOs.

The Coast Guard considered three alternatives in developing the

proposed rulemaking.

(a) Take no action. If the Coast Guard fails to take any action,

the numbers of vessels stolen and the incidence of vessel fraud

involving altered HINs will continue to increase. In addition, the

development of VIS requires a means for identification of each vessel

and proof of vessel ownership. Use of the 19 character HIN and a COO

requirement appear to be the best way to accomplish those requirements.

Many of the States and many law enforcement agencies support the

proposal for a 19 character HIN and NASBLA, the National Boating Safety

Advisory Council (NBSAC) and the National Association of Marine

Investigators (NAMI), all support Coast Guard adoption of the 19

character HIN. The Coast Guard has also received numerous complaints

from owners who are unable to register their vessels because they do

not have a COO.

(b) Initiate a rulemaking to:

(1) Amend the HIN regulations in 33 CFR part 181 to require

additional information about the vessel to be reflected in the HIN and

add a requirement for a check digit to aid in the prevention of fraud,

thereby expanding the current HIN format from 12 to 19 characters; and

(2) Require manufacturers and importers to complete a Builder's

Certification.

Expanding the HIN to 19 characters would provide the best means of

developing a vessel identifier for VIS and help to discourage and

detect alterations of HINs through inclusion of the check digit. While

requiring all vessel manufacturers to provide a completed Builder's

Certification would have the advantage of utilizing one form for all

vessels whether documented, numbered or titled, it would prove overly

burdensome to many manufacturers and importers.

The Builder's Certification is designed for use by those

documenting a vessel under 46 CFR part 67. Obtaining endorsements for

documented vessels requires detailed information about the vessel,

including the country in which the vessel and its major components were

manufactured. Since a COO does not satisfy these documentation

information requirements, it is not accepted as evidence of ownership

for the purposes of documentation. The Builder's Certification

satisfies documentation requirements, but would require information

well beyond what is needed for VIS purposes and it would be overly

burdensome to require manufacturers and importers to complete a

Builder's Certification for every recreational vessel. The estimated

reporting burden for the Builder's Certification is 30 minutes, while

the estimated burden to complete the COO is five minutes. Therefore,

requiring a Builder's Certification is not the preferred alternative

for establishing the chain of ownership for the purposes of VIS.

(c) Initiate a rulemaking to:

(1) Amend the HIN regulations in 33 CFR part 181 to require

additional information about the vessel to be reflected in the HIN and

add a requirement for a check digit to aid in the prevention of fraud,

thereby expanding the current HIN format from 12 to 19 characters; and

(2) Require manufacturers and importers to provide a completed COO

for each recreational vessel they manufacture or import. This is the

preferred alternative.

This alternative would provide VIS with the preferred 19 character

HIN as well as the best method of establishing the chain of ownership

for VIS purposes through the COO requirement. The COO requirement would

provide all the information necessary for VIS and would take just five

minutes to complete.

Small Entities

Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the

Coast Guard must consider whether this proposal will have a significant

economic impact on a substantial number of small entities. ``Small

entities'' include independently owned and operated small business that

are not dominant in their field and that otherwise qualify as ``small

business concerns'' under section 3 of the Small Business Act (15

U.S.C. 632).

The proposed regulations will apply to the following small

entities: Small manufacturers building vessels, small importers

importing vessels and State issuing authorities.

There are reporting requirements associated with an expanded HIN

that could be more burdensome to small entities than to the larger

volume manufacturers, especially in the calculation of the check digit.

Eighty percent of the new recreational vessels manufactured annually

are build by 20 percent of the industry. These are large companies with

engineering departments that are equipped with computers and the

expertise to understand and properly encode the additional characters

and the check digit. The majority of the recreational vessel

manufacturers, however, are small volume builders who may have a more

difficult time implementing the regulations and making the necessary

calculations to determine the check digit. When using simple

arithmetic, those calculations may take as long as 15 minutes per

vessel. The Coast Guard has developed a computer program which

calculates the check digit which is available to any vessel

manufacturer with a computer. The Coast Guard has also developed

several work sheets to help determine the HIN for a vessel and the

worksheets are also available. Therefore, preliminary analysis

indicates that a 19 character HIN will not have a significant economic

impact on a substantial number of small entities.

The requirement for a COO may also result in additional

requirements for small entities. Since a COO is unique to the vessel to

which it is assigned, there may be some additional requirements

associated with assuring that the proper COO accompanies each vessel,

particularly for importers of inflatables and similar, high volume, low

cost vessels which are shipped in bulk containers. As a result, the COO

requirement in the proposed regulations may require changes in the

manner in which small, high volume vessels are packaged for shipment.

However, a preliminary analysis indicates that the COO requirement will

not result in a significant impact on a substantial number of small

entities.

Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that

this proposal, if adopted, will not have a significant economic impact

on a substantial number of small entities. If, however, you think that

your business or organization qualifies as a small entity and that this

proposal will have a significant economic impact on your business or

organization, please submit a comment (see ADDRESSES) explaining why

you think it qualifies and in what way and to what degree this proposal

will economically affect it.

Collection of Information

Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the

Office of Management and Budget (OMB) reviews each proposed rule that

contains a collection of information requirement to determine whether

the practical value of the information is worth the burden imposed by

its collection. Collection of information requirements include

reporting, recordkeeping, notification, labeling and other, similar

requirements.

This proposal contains collection of information requirements in

the following sections: 181.23, 181.31 and 181.43. The following

particulars apply:

DOT: 2115.

OMB CONTROL No.: 2115-XXXX.

Administration: U.S. Coast Guard

Title: Expanded Hull Identification Number and New Requirements for

Certificates of Origin.

Need for Information: The information collection requirements

contained in this proposal are necessary to meet statutory requirements

of 46 U.S.C. chapter 125 regarding the establishment of a national

vessel identification system for recreational vessel owners.

Proposed Use of Information: To be used by State agencies, local

law enforcement, the Coast Guard and other Federal agencies and be

available, on a fee basis, to private businesses involved in the

maritime industry (such as banking firms and insurance companies) as a

centralized data base regarding recreational vessels.

Burden Estimate: See discussion below.

Respondents: Boat manufacturers and importers (4,000), individuals

building their own vessels (17,000) and issuing authorities in States

and territories of the United States (56).

Forms: Hull Identification Number and Certificate of Origin

Average Burden Hours Per Respondent: Variable. There is no

practical way to estimate the burden per respondent for the Hull

Identification Number regulations. The respondents are vessel

manufacturers and importers and State vessel registration and numbering

authorities and members of the public who build their own vessels. Some

manufacturers produce thousands of vessels annually, while others may

produce only a single vessel annually.

There are approximately 4,000 U.S. manufacturers and importers of

recreational vessels. They manufacture or import an estimated 2,000,000

recreational vessels annually.

Eighty percent are built by major manufacturers. For those

manufacturers the Coast Guard estimates five minutes per vessel to

determine the HIN and affix it to the vessel:

.80 x 2,000,000=1,600,000 vessels

5 x 1,600,000=8,000,000 minutes=133,333 hours.

Twenty percent of the vessels are built by small and often non-

sophisticated manufacturers. For those manufacturers the Coast Guard

estimates 15 minutes per vessel to determine the HIN and affix it to

the vessel:

.20 x 2,000,000=400,000 vessels

15 x 400,000=6,000,000 minutes=100,000 hours.

An estimated 17,000 individuals build their own vessels annually.

Individuals building their own vessels are assigned an entire Hull

Identification Number by the State in which they reside. The Coast

Guard estimates that it takes an individual approximately 15 minutes to

affix the HIN to a vessel:

17,000 x 15=255,000 minutes=4,250 hours

133,333+100,000+4,250=237,583 hours a total annual burden.

This total annual burden estimate would vary from year to year

depending upon the state of the national economy which impacts upon

annual production figures.

There is also no practical way to estimate the burden per

respondent for the proposed COO requirement. The respondents are vessel

manufacturers and importers and State vessel registration and numbering

authorities and members of the public who build their own vessels. Most

manufacturers with a computer will not suffer from significant burdens,

because the computer can be programmed to generate completed COOs. For

those manufacturers the Coast Guard estimates 3 minutes per vessel to

complete a COO:

.80 x 2,000,000=1,600,000 vessels

3 x 1,600,000=4,800,000 minutes=80,000 hours.

Twenty percent of the vessels are built by small and often non-

sophisticated manufacturers. For those manufacturers the Coast Guard

estimates 5 minutes per vessel to type the required information

(security standards would require that the COO be machine prepared):

.20 x 2,000,000=400,000 vessels

5 x 400,000=2,000,000 minutes=33,333 hours.

Approximately 17,000 individuals build their own vessels annually.

The States assign Hull Identification Numbers to individuals building

their own vessels. For individuals the Coast Guard estimates 30 minutes

per vessel to obtain a COO from the State.

30 x 17,000=510,000=8,500 hours.

States and territories participating in VIS and assigning Hull

Identification Numbers would have computers to generate the COO and HIN

on the basis of information supplied by an individual. The Coast Guard

estimates 5 minutes for States or territories to enter information

about a vessel into a computer and generate a COO:

5 x 17,000=85,000=1,416 hours

80,000+33,000+8,500+1,416=122,916 hours total annual burden.

This annual burden estimate could be substantially higher or lower

from year to year depending upon the state of the national economy,

which impacts upon annual production figures.

Federalism

The Coast Guard has analyzed this proposal in accordance with the

principles and criteria contained in Executive Order 12612 and has

determined that this proposal does not have sufficient federalism

implications to warrant the preparation of a Federalism Assessment.

These regulations will benefit State boating authorities enforcing

State titling and registration regulations.

Title 46 U.S.C. 4302 authorizes the Coast Guard to establish HIN

regulations. Unless the Secretary provides an exemption, a State may

not establish, continue in effect, or enforce a law or regulation that

is not identical to a regulation prescribed under 46 U.S.C. 4302.

Therefore, the Coast Guard intends to preempt State and local laws and

regulations which are not identical to the Coast Guard's HIN or COO

requirements. Title 46 U.S.C. chapter 125 requires the Coast Guard to

establish VIS requirements. The States' participation in VIS is

entirely voluntary; however, once a State elects to participate, it

must comply with the requirements of VIS in order to ensure the

integrity and uniformity of the system. Therefore, only those States

meeting all of the VIS requirements will be allowed to participate in

the VIS system, and the Coast Guard would preempt State and local laws

prescribing requirements for VIS which are not identical to those the

Coast Guard prescribes.

Environment

The Coast Guard considered the environmental impact of this

proposal and concluded that under section 2.b.2(1) of Commandant

Instruction M16475.1B, this proposal is categorically excluded from

further environmental documentation. This proposal governs labeling and

the issuance of COOs for vessels, and has no environmental

consequences. A Categorical Exclusion Determination is available in the

docket for inspection or copying where indicated under ADDRESSES.

List of Subjects in 33 CFR Part 181

Labeling, Marine safety, Reporting and recordkeeping requirements,

Incorporation by reference.

For the reasons set out in the preamble, the Coast Guard proposes

to amend 33 CFR part 181 as follows:

PART 181--MANUFACTURER REQUIREMENTS

1. The authority citation for part 181 is revised to read as

follows:

Authority: 46 U.S.C. 4302, 12501, 12502; 49 CFR 1.46.

2. In Sec. 181.3, paragraph (f) is revised to read as follows:

Sec. 181.3 Definitions.

* * * * *

(f) Certificate of origin means form CG-XXXX.

* * * * *

3. In Sec. 181.4, paragraph (b) is amended by adding the following

incorporations by reference in alphabetical order:

Sec. 181.4 Incorporation by reference.

* * * * *

(b) * * *

American National Standards Institute, Customer Service Sales

Department, 11 West 42nd Street, New York, NY 10036.

ISO 3166-88 Codes for the representation of names of countries

Sec. 181.25(a)

ISO 1073/I-1976 Alphanumeric character sets for optical recognition--

Part I: Character Set OCR-A--Shapes and dimensions of the printed image

Sec. 181.45(b)

* * * * *

4. Section 181.25 is revised to read as follows:

Sec. 181.25 Hull identification number format.

Each of the hull identification numbers required by Sec. 181.23

must consist of nineteen characters, uninterrupted by slashes, hyphens,

or spaces, as follows:

(a) The first two characters must be an alphabetic code from column

2 of ISO 3166-88 indicating the country of manufacturer identification

code registration.

(b) Characters three through five must be a manufacturer

identification code assigned under Sec. 181.31(a) or the importer

designation assigned under Sec. 181.31(b).

(c) Characters six through ten must be a serial number assigned by

the manufacturer in letters of the English alphabet, or Arabic

numerals, or both, and may not include the letters, I, O and Q.

(d) Characters eleven and twelve must indicate the month and year

of certification when a date of certification is required. In all other

cases characters eleven and twelve must indicate the date of

manufacture. The date indicated can be no earlier than the date

construction or assembly began and no later than the date the vessel

leaves the place of manufacture or assembly or is imported into the

United States for the purposes of sale. Character eleven must be

indicated using letters of the English alphabet. The first month of the

year, January, must be designated by the letter ``A'', the second

month, February, by the letter ``B'', and so on until the last month of

the year, December. Character twelve must be the last digit of the year

of manufacture or certification and must be an Arabic numeral.

(e) Characters thirteen and fourteen must indicate the model year

using Arabic numerals for the last two numbers of the model year such

as ``94'' for 1994 and ``95'' for 1995.

(f) The fifteenth character must indicate the overall length of the

vessel using the corresponding letter of the English alphabet from

Table 181.25(f).

Table 181.25(f).--Characters Representing Length of Boat1

------------------------------------------------------------------------

Character Length

------------------------------------------------------------------------

A.................................. Less than 6 ft.

B.................................. 6 ft to 10 ft.

C.................................. 11 ft.

D.................................. 12 ft.

E.................................. 13 ft.

F.................................. 14 ft.

G.................................. 15 ft.

H.................................. 16 ft.

J.................................. 17 ft.

K.................................. 18 ft.

L.................................. 19 ft.

M.................................. 20 ft.

N.................................. 21 ft.

P.................................. 22 ft.

R.................................. 23 ft.

S.................................. 24 ft.

T.................................. 25 ft.

U.................................. 26 ft.

V.................................. 27 ft.

W.................................. 28 ft.

X.................................. 29 ft.

Y.................................. 30 ft.

Z.................................. 31 ft or more.

------------------------------------------------------------------------

1Inches are not included in the measurement of length, e.g., 15 ft 10 in

is 15 ft and 16 ft 3 in is 16 ft.

(g) The sixteenth character must indicate the hull material of the

vessel using the corresponding Arabic numeral from Table 181.25(g).

Table 181.25(g).--Characters Representing Hull Material of Vessel

------------------------------------------------------------------------

Character Hull material

------------------------------------------------------------------------

1.................................. Aluminum.

2.................................. Ferrocement.\1\

3.................................. Fiber Reinforced Plastic.

4.................................. Flexible Fabric.\2\

5.................................. Foam.

6.................................. Plastic.\3\

7.................................. Steel.

8.................................. Wood.

------------------------------------------------------------------------

\1\Ferrocement includes all types of concrete and portland cement.

\2\Flexible fabric can be distinguished from plastic sheet by the

absence of any woven material.

\3\Plastic includes flexible plastic sheet, rigid sheet which has been

thermoformed, and rotational molded plastic.

(h) The seventeenth character must indicate the principal means of

propulsion of the vessel using the corresponding Arabic numeral from

Table 181.25(h).

Table 181.25(h).--Characters Representing Principal Means of Propulsion

------------------------------------------------------------------------

Character Principal propulsion

------------------------------------------------------------------------

1.................................. Air Propeller.

2.................................. Bracket mounted outboard.

3.................................. Inboard.

4.................................. Inboard jet.

5.................................. Inboard/Outdrive.

6.................................. Non-powered.\1\

7.................................. Outboard.

8.................................. Sail.\2\

9.................................. Sail w/Inboard Auxiliary.

------------------------------------------------------------------------

\1\Non-powered includes pedals, paddles and oars, but not sails.

\2\Sail includes sailboats which may have a small outboard engine for

auxiliary power.

(i) The eighteenth character must indicate the type of vessel using

the corresponding Arabic numeral from Table 181.25(i).

Table 181.25(i).--Characters Representing Type of Boat

------------------------------------------------------------------------

Character Type

------------------------------------------------------------------------

1............. Air Cushion Vehicle.\1\

2............. Canoe, Kayak, Sailboard, Surfboard.

3............. Inflatable.\1\

4............. Monohull/Cabin Configuration.\2\

5............. Monohull/Closed Bow.\3\

6............. Monohull/Open Bow.\4\

7............. Multihull/Cabin or closed Bow.2,3,5

8............. Multihull/Open Deck.4,5

9............. Personal Watercraft.\6\

------------------------------------------------------------------------

\1\Air Cushion Vehicle is sometimes called a hovercraft, which is a

registered trademark.

\2\Cabin configuration includes full cabin, cuddy cabin, houseboat, and

in general any shelter containing berths, or other accommodations for

personnel.

\3\Closed bow is most commonly called a runabout and includes any type

of forward deck which is not a shelter for personnel.

\4\Open bow or Open Deck includes utility boats, open deck bass boats,

and most center console vessels.

\5\Multihull includes any watercraft where there are distinct hulls

connected by a common deck such as trihulls, catamarans and pontoon

boats.

\6\Personal watercraft comprise a wide variety of craft on which the

operator and/or passengers ride, rather than occupy a passenger

carrying area inside the hull.

(j) The nineteenth character must be a check digit calculated as

follows:

(1) On line A of Figure 181.25(j) enter the first eighteen

characters of the HIN.

(2) On line B enter the value of each character in the HIN.

(3) Multiply each number in line B by its corresponding number in

line C for each of the eighteen digits and enter the product of each of

these separate computations in the appropriate spaces in line D.

(4) Add all the numbers recorded in line D together.

(5) Divide the final sum by the number, 10. The remainder of this

division is the check digit, the nineteenth character in the HIN. If

the remainder is zero, the nineteenth character is 0.

BILLING CODE 4910-14-C

TP06MY94.000

BILLING CODE 4910-14-C

5. In Sec. 181.31, paragraph (c) is revised to read as follows:

Sec. 181.31 Manufacturer identification code assignment.

* * * * *

(c) Each person required to identify a vessel under Sec. 181.23(b)

must obtain a hull identification number from the issuing authority of

the State where the vessel will be principally used, or, if the States

does not assign these numbers, from the Coast Guard District office in

the area of principal use.

* * * * *

6. A new subpart D is added to read as follows:

Subpart D--Certificates of Origin for Boats

Sec.

181.41 Purpose and applicability.

181.43 Certificate of Origin required.

181.45 Required information for Certificate of Origin.

181.47 Duplicate Certificate of Origin form.

181.49 Source for Certificate of Origin form.

181.51 Alteration of Certificate of Origin.

181.53 Fraudulent use of Certificate of Origin.

181.55 Unauthorized name or address change.

Subpart D--Certificates of Origin for Boats

Sec. 181.41 Purpose and applicability.

This subpart prescribes requirements for the issuance of

Certificates of Origin (CG-XXXX) to vessels to which this part applies.

Sec. 181.43 Certificate of Origin required.

(a) A manufacturer (or importer) as defined in Sec. 181.3 of this

part, shall furnish with each new recreational vessel that is sold or

offered for sale, a Certificate of Origin (CG-XXXX) containing the

information required by this subpart.

(b) No person shall sell or offer for sale a new recreational

vessel unless a Certificate of Origin (CG-XXXX) meeting the

requirements of this subpart is furnished with the recreational vessel.

Sec. 181.45 Required information for Certificate of Origin.

A Certificate of Origin (CG-XXXX) furnished with a recreational

vessel in accordance with Sec. 181.43 must--

(a) Be signed by or on behalf of the vessel manufacturer; and

(b) Recite the following:

(1) The vessel's 19 character hull identification number assigned

in accordance with Sec. 181.25.

(2) The date the Certificate of Origin is issued.

(3) The model name or numerical designation for the vessel.

(4) The length of the vessel in feet and inches.

(5) The beam of the vessel in feet and inches.

(6) Whether the vessel is for commercial or recreational use.

(7) The name and address of the dealer or individual to whom the

vessel is first transferred.

(8) The place the vessel is constructed (plant location).

Sec. 181.47 Duplicate Certificate of Origin form.

A duplicate Certificate of Origin form (CG-XXXX) issued by a boat

manufacturer or importer that is used as a replacement for an original

CG-XXXX, must:

(a) Incorporate the same security features as the original CG-XXXX;

(b) Recite the same information as the original CG-XXXX required in

Sec. 181.45, except for the date of issuance; and

(c) State clearly on the face of the document that it is a

``Duplicate.''

Sec. 181.49 Source for Certificate of Origin form.

A manufacturer (or importer) as defined in Sec. 181.3 of this part,

must obtain Certificate of Origin forms (CG-XXXX) from: [Address to be

inserted in final rule].

Sec. 181.51 Alteration of Certificate of Origin.

No person shall intentionally alter a Certificate of Origin (CG-

XXXX).

Sec. 181.53 Fraudulent use of Certificate of Origin.

No person shall knowingly use a Certificate of Origin (CG-XXXX) in

a fraudulent manner.

Sec. 181.55 Unauthorized name or address change.

No manufacturer or importer who issues Certificates of Origin (CG-

XXXX) in accordance with this subpart shall change the company name or

address without notifying the U.S. Coast Guard Recreational Boating

Product Assurance Branch, 2100 Second Street SW., Washington, DC 20593-

0001 in writing.

Dated: April 28, 1994.

W.J. Ecker,

Rear Admiral, U.S. Coast Guard, Chief, Office of Navigation Safety and

Waterway Services.

BILLING CODE 4910-14-M

Appendix A to This Document Sample Forms

TP06MY94.001

TP06MY94.002

[FR Doc. 94-10853 Filed 5-5-94; 8:45 am]

BILLING CODE 4910-14-C