Coast Guard Proposes New Annual Vessel Documentation Fee

On March 4, 2013, the Coast Guard plans to publish a Notice of Proposed Rulemaking proposing to implement a $26 Renewal Fee for the annual renewal of trade endorsements on U.S. vessel Certificates of Documentation. Up until now the Coast Guard has not charged for renewals, treating the cost of those services as part of its general overhead. However, since the Coast Guard last promulgated user fees for vessel documentation services on November 15, 1993, its costs have, of course, gone up significantly. The Coast Guard expects the proposed Renewal Fee would generate $6.1 million annually, enough to offset the estimated costs of renewal services. Notably, the fee would still be less than the average fees charged by states for vessel registration renewals. While the Coast Guard does not plan on holding any public hearings on the proposed rule, it is open to public comment, with comments due by May 3, 2013.