Hull Identification Numbers for Recreational Boats

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 181

[CGD 92-065]

RIN 2115-AE37

Hull Identification Numbers for Recreational Boats

AGENCY: Coast Guard, DOT.

ACTION: Request for comments.

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

SUMMARY: For several years the Coast Guard has been working on a

regulatory project to expand the existing 12-character Hull

Identification Number (HIN) required for all recreational boats

manufactured in or imported into the United States. Many State law

enforcement personnel, bankers, insurers, and theft investigators favor

a longer HIN containing vessel-specific characters and a check digit.

They believe it would deter both boat theft and the alteration of HIN's

for fraudulent purposes. Therefore, the purpose of this notice is to

solicit comments from interested people, groups, and businesses about

whether the expected benefits to society of an expanded HIN format

outweigh the paperwork burdens on boat manufacturers.

DATES: Comments must reach the Coast Guard on or before February 16,

1999.

ADDRESSES: You may mail comments 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

deliver them to room 3406 at the same address between 9:30 a.m. and 2

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

number is 202-267-1477.

The Executive Secretary maintains the public docket for this

rulemaking. Comments, and documents as indicated in this preamble, will

become part of this docket and will be available for inspection or

copying at room 3406, U.S. Coast Guard Headquarters, between 9:30 a.m.

and 2 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT:

Alston Colihan, Office of Boating Safety, Recreational Boating Product

Assurance Division, 202-267-0981. A copy of this notice may be obtained

by calling the U.S. Coast Guard Infoline at 1-800-368-5647 or may be

found on the Internet at the Office of Boating Safety Web Site at URL

address www.uscgboating.org.

SUPPLEMENTARY INFORMATION:

Request for Comments

Persons submitting comments should include their names and

addresses, identify this notice (CGC 92-065) and the specific area of

concern to which each comment applies, and give the reason for each

comment. Please submit two copies of all comments and attachments in an

unbound format, no larger than 8\1/2\ by 11 inches, suitable for

copying and electronic filing. If you want us to acknowledge receipt of

your comments, please enclose a stamped, self-addressed postcard or

envelope.

Background and Purpose

The Secretary of Transportation is required to establish the Vessel

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

use by the public and law enforcement officials. The Secretary has

delegated to the Commandment, 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.

Regulatory History

The Coast Guard published a Notice of Proposed Rulemaking in the

Federal Register (59 FR 23651) on May 6, 1994, to expand the existing

12-character HIN to include certain vessel-specific information similar

to the Vehicle Identification Number (VIN) on an automobile. A check

digit in the expanded HIN would have made alteration of an HIN more

difficult, thereby helping to prevent fraud in the sale of vessels. The

comment period closed on September 9, 1994.

Various parties commenting on the proposal opposed the 19-character

HIN and one comment from an association sought an extension of the

comment period. Therefore, on November 9, 1994, a notice announcing a

workshop and the reopening of the comment period was published in the

Federal Register (59 FR 55823). The purpose of the workshop was to

receive oral comments on the proposed 19-character HIN and explore

various alternatives. Several organizations, including the

International Organization for Standardization (ISO), the National

Association of State Boating Law Administrators, the National Marine

Manufacturers Association, the American Boat and yacht Council, the

National Association of Marine Investigators, and the North American

Paddlesports Association were specifically invited to give oral

presentations. The comment period for the NPRM was extended until

January 9, 1995.

The major obstacle to the proposed 19-character HIN is the

increased information collection burdens, particularly on small

entities and the builders of high-volume, low cost boats, such as

canoes, kayaks, and inflatables.

The Coast Guard received 114 comments on the proposal, the majority

of which were opposed to a 19-character HIN format or recommended a

different format. None of the comments from State, insurance, theft

investigation, or law enforcement organizations indicated that they

would support exceptions to the proposed requirements for small

entities or builders of high-volume, lost-cost boats. Preliminary

estimates of the time required to manually calculate the check digit

for a single boat is 15 minutes.

Several comments, including one from the National Marine

Manufacturers Association, which represents approximately 200 of the

larger boat manufacturers, indicated that the International Standards

Organization had finalized a HIN standard consisting of the existing

Coast Guard 12-character HIN format preceded by a 2-character country

code and a hyphen. The comments indicated that manufacturers would be

using the ISO HIN standard beginning with the 1996 model year. If the

Coast Guard adopted a different HIN format, manufacturers would have to

place two different HIN's in the same location, creating worldwide

documentation and importation problems for all involved.

Federal agencies with regulatory programs are subject to the

Paperwork Reduction Act, which is enforced by the Office of Management

and Budget (OMB). The intent of the Act is to ensure that the Federal

Government imposes only the minimum burden on the public in collecting

information and maintaining records and that the information collected

or maintained is necessary and useful. Regulations requiring

manufacturers to display labels, such as HIN's, are examples of

collection-of-information requirements.

During the comment period, OMB contacted the Coast Guard and

indicated that it had received many negative comments on the project

and that OMB would be taking a very close look at the proposed

collection of information requirements. None of the comments in favor

of the proposal for a 19-character HIN were willing to allow exceptions

for builders of high volume, low-cost boats. Therefore, because of

Coast Guard concerns about information-collection burdens and the OMB

comments, the

[[Page 63639]]

Coast Guard published a Supplemental Notice of Proposed Rulemaking

(SNPRM) in the Federal Register on February 21, 1997 (62 FR 7971). The

Coast Guard indicated that it would align the HIN with the recently

adopted ISO 14-character HIN standard. The comment period closed May

22, 1997.

The Coast Guard received 31 comments nearly all of which were

opposed to the 14-character ISO HIN format. Some of the comments

indicated that, if the Coast Guard were to adopt the ISO format,

instead of a 17- or 19-character HIN format, some States might refuse

to participate in the development of the Vessel Identification System

(VIS).

Discussion

There are two opposing views about how to expand the HIN format:

(1) the States, bankers, insurers, and theft investigators favor an

expanded format with vessel-specific characters and a check digit to

deter both boat theft and the alteration of HIN's for fraudulent

purposes; and (2) boat builders favor the recently adopted 14-character

ISO HIN format. The Coast Guard is developing the Vessel Identification

System (VIS), which will provide a nationwide pool of vessel and vessel

owner information that will help in identifying and recovering of

stolen vessels and deterring vessel theft. If just a few States with

large recreational vessel populations refuse to participate in VIS, the

usefulness of the system could be seriously jeopardized. However, the

Coast Guard lacks detailed information about the anticipated costs and

benefits of the HIN format favored by the States, bankers, insurers,

and theft investigators. Also, we will believe that, if an expanded HIN

format consisting of vessel-specific characters and a check digit is

ever adopted, the Coast Guard should be allowed to exempt small

manufacturers and manufacturers of high-volume, low-cost boats to

minimize costs and information collection burdens. Therefore, the Coast

Guard encourages you to comment on (1) the expected benefits of an

expanded Hull Identification Number with vessel-specific characters and

a check digit; (2) the manner in which the Coast Guard should exempt

small entities and the builders of high-volume, low cost boats, such as

canoes, kayaks, and inflatables; and (3) the estimated burdens and

costs to boat manufacturers if the HIN regulations were revised to

require vessel-specific characters and a check digit. We particularly

need your help in answering the following questions:

1. Expanded Hull Identification Number. What are the expected

benefits if the HIN regulations include vessel specific characters

delineating a vessel's length, hull material, and means of propulsion

and a check digit to help detect fraudulent alterations of HIN's? What

are the estimated numbers of thefts that would be prevented? What are

the estimated numbers of lost or stolen boats that would be recovered?

What is the estimated value of insurance company losses that would be

prevented? What are the estimated numbers of fraud attempts that would

be prevented? What are the estimated reductions in investigatory

expenditures?

1. Small entities. The Coast Guard believes that, if it returns to

a proposal for regulations to require an HIN consisting of additional

vessel-specific characters and a check digit, then we have to be able

to exempt some builders to minimize costs and information collection

burdens on small manufacturers and manufacturers of high-volume, low-

cost boats. Should the Coast Guard consider exempting all builders of

non-powered boats? Should the Coast Guard consider exempting

manufacturers of boats that sell for less than a certain amount? What

alternatives are available that would reduce adverse impacts on small

entities and builders of high-volume, low-cost boats?

3. Costs and burdens. Preliminary estimates of the time required to

manually calculate the check digit for a single boat is 15 minutes. Is

this estimate valid? How does this estimate translate into annual costs

for manufacturers of various types of recreational boats?

Additional information about the benefits of an expanded HIN

consisting of vessel-specific characters and a check digit and possible

exceptions for small entities and builders of high-volume, low-cost

boats is needed if the Coast Guard is to reconsider an expanded HIN.

Dated: November 5, 1998.

Ernest R. Riutta,

Rear Admiral, U.S. Coast Guard, Assistant Commandant for Operations.

[FR Doc. 98-30597 Filed 11-13-98; 8:45 am]

BILLING CODE 4910-15-M