What is the advantage of having a boat documented by the coast guard? Why do people go through the trouble?

Question

What is the advantage of having a boat documented by the coast guard? Why do people go through the trouble?

Answer 1

If your boat qualifies as a documented vessel, you do not have to have state water craft registration-it also allows you to enter and exit foreign ports more easily. It makes ownership of a large watercraft more simple.

Answer 2

Except for large Yachts in the million Dollar and up range, it's not worth while.   In many states boats have registration numbers and titles issued by the state, just like cars.   The Yacht Documentation is like a title issued by the government (USCG).  some banks prefer this because it is in effect a national title.  Easier to trace if the boat changes hands.

Answer 3

Vessel documentation is a national form of registration. It is one of the oldest functions of Government, dating back to the 11th Act of the First Congress. Documentation provides conclusive evidence of nationality for international purposes, provides for unhindered commerce between the states, and admits vessels to certain restricted trades, such as coastwise trade and the fisheries. Since 1920, vessel financing has been enhanced through the availability of preferred mortgages on documented vessels.

A vessel must measure at least five net tons and, with the exception of certain oil spill response vessels, must be wholly owned by a citizen of the U.S.

Vessels of five net tons or more used in fishing activities on navigable waters of the U.S. or in the Exclusive Economic Zone (EEZ), or used in coastwise trade must be documented unless the vessel is exempt from documentation. Coastwise trade is generally defined as the transportation of merchandise or passengers between points in the U.S. or the EEZ. In addition, towboats operating between points in the U.S. or the EEZ or between the EEZ and points in the U.S. and dredges operating in the U.S. or the EEZ must be documented.