# 46 CFR § 68.17: Restrictions

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-46-68.17

## Section

- **Citation:** 46 CFR § 68.17
- **Heading:** Restrictions
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 46—Shipping > CHAPTER I—COAST GUARD, DEPARTMENT OF HOMELAND SECURITY > SUBCHAPTER G—DOCUMENTATION AND MEASUREMENT OF VESSELS > PART 68—DOCUMENTATION OF VESSELS: EXCEPTIONS TO COASTWISE QUALIFICATION > Subpart A—Regulations for Engaging in Limited Coastwise Trade

## 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 CFR § 68.1 § 68.1 Purpose of subpart.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.1.md)
- [46 CFR § 68.3 § 68.3 Definitions for the purposes of this subpart.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.3.md)
- [46 CFR § 68.5 § 68.5 Requirements for citizenship under 46 U.S.C. App. 883-1.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.5.md)
- [46 CFR § 68.7 § 68.7 Qualification as an 883-1 corporation.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.7.md)
- [46 CFR § 68.9 § 68.9 Qualification as a parent or subsidiary.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.9.md)
- [46 CFR § 68.11 § 68.11 Cessation of qualification.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.11.md)
- [46 CFR § 68.13 § 68.13 Privileges conferred—documentation of vessel.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.13.md)
- [46 CFR § 68.15 § 68.15 Privileges conferred—operation of vessels.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.15.md)
- [46 CFR § 68.17 § 68.17 Restrictions.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.17.md)
- [46 CFR § 68.19 § 68.19 Application by an 883-1 corporation to document a vessel.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.19.md)
- [46 CFR § 68.25 § 68.25 Purpose and scope.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.25.md)
- [46 CFR § 68.27 § 68.27 Definitions for purposes of this subpart.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.27.md)
- [46 CFR § 68.29 § 68.29 Citizenship requirements for limited coastwise endorsement.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.29.md)
- [46 CFR § 68.31 § 68.31 Vessel eligibility requirements for limited coastwise endorsement.](https://www.frixlaw.com/law-library/statutes/ecfr-46-68.31.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-46-68.17. Check the current official text before relying on it. Not legal advice.