§ 68.17 Restrictions.
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Title 46 CFR: Shipping › Chapter I: COAST GUARD, DEPARTMENT OF HOMELAND SECURITY › Part 68: DOCUMENTATION OF VESSELS: EXCEPTIONS TO COASTWISE QUALIFICATION › Subpart A: Regulations for Engaging in Limited Coastwise Trade › § 68.17: § 68.17 Restrictions.
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(a) Vessels employed subject to the Act are entitled to operation only in the coastwise trade and only to the extent described in paragraphs (b) and/or (c) of this section.
(b) A vessel owned by an 883-1 corporation may engage in coastwise transportation for hire as a service to a parent or subsidiary corporation as defined in § 68.3. Such transportation for hire must be between points of the United States, including territories, districts, and possessions thereof embraced in the coastwise laws.
(c) A vessel owned by an 883-1 corporation may be operated under demise or bareboat charter to a common or a contract carrier subject to 49 U.S.C. chapter 101 if the corporation is a U.S. citizen as defined in 46 U.S.C. App. 802.
(1) Such common or contract carrier may not be connected either directly or indirectly by ownership or control with the 883-1 corporation.
(2) The demise or bareboat charter must be at prevailing rates.
(3) The vessels under a demise or bareboat charter may not be used in non-contiguous trade.
[CGD 80-107, 47 FR 27511, June 24, 1982, as amended by CGD 95-028, 62 FR 51203, Sept. 30, 1997. Redesignated and amended by USCG-2005-20258, 71 FR 61418, Oct. 18, 2006]
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