# 46 C.F.R. § 68.17 (2026): Restrictions

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_17

## Section

- **Citation:** 46 C.F.R. § 68.17 (2026)
- **Heading:** Restrictions
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** 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.

## Text

(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]

## Nearby sections

- [46 C.F.R. § 68.1 (2026) § 68.1   Purpose of subpart.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_1.md)
- [46 C.F.R. § 68.3 (2026) § 68.3   Definitions for the purposes of this subpart.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_3.md)
- [46 C.F.R. § 68.5 (2026) § 68.5   Requirements for citizenship under 46 U.S.C. App. 883-1.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_5.md)
- [46 C.F.R. § 68.7 (2026) § 68.7   Qualification as an 883-1 corporation.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_7.md)
- [46 C.F.R. § 68.9 (2026) § 68.9   Qualification as a parent or subsidiary.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_9.md)
- [46 C.F.R. § 68.11 (2026) § 68.11   Cessation of qualification.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_11.md)
- [46 C.F.R. § 68.13 (2026) § 68.13   Privileges conferred—documentation of vessel.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_13.md)
- [46 C.F.R. § 68.15 (2026) § 68.15   Privileges conferred—operation of vessels.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_15.md)
- [46 C.F.R. § 68.17 (2026) § 68.17   Restrictions.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_17.md)
- [46 C.F.R. § 68.19 (2026) § 68.19   Application by an 883-1 corporation to document a vessel.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_19.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T46_P68_S68_17. Check the current official text before relying on it. Not legal advice.