[Code of Federal Regulations]
[Title 46, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 46CFR68.01-15]

[Page 381]
 
                           TITLE 46--SHIPPING
 
   CHAPTER I--COAST GUARD, DEPARTMENT OF HOMELAND SECURITY (CONTINUED)
 
PART 68_DOCUMENTATION OF VESSELS PURSUANT TO EXTRAORDINARY LEGISLATIVE 
GRANTS--Table of Contents
 
  Subpart 68.01_Regulations Implementing Provisions for 46 U.S.C. App. 
                                  883-1
 
Sec. 68.01-15  Restrictions.

    (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 Sec. 68.01-1. 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]