221.28 Removal without disapproval. Publication of notices. Forms.

221.29 221.30

Appendix-Statement of policy.

AUTHORITY: The provisions of this Part 221 issued under sec. 19, 41 Stat. 995, sec. 9, 39 Stat. 730, sec. 30, 41 Stat. 1004, 46 U.S.C. 876, 1114, 808, 835, 961, Reorganization Plan No. 7 of 1961 (26 F.R. 7315), unless otherwise noted. § 221.4 Approval of certain transactions covered by sec. 37, Shipping Act, 1916, as amended.

Subject to the exceptions stated in § 221.6, the Department of Commerce, Maritime Administration, hereby grants the approval required by section 37 of the Shipping Act, 1916, as amended (40 Stat. 901; 46 U.S.C. 835), to the following transactions:

(a) The sale, mortgage, lease, charter, delivery, or transfer and agreement for the sale, mortgage, lease, charter, delivery or transfer to any person not a citizen of the United States of vessels as defined in § 221.5, or of any interest therein, owned in whole or in part by any person a citizen of the United States, or by a corporation organized under the laws of the United States, or of any State, Territory, District, or Possession thereof, and which are not documented under the laws of the United States, or the last documentation of which was not under the laws of the United States;

(b) The transfer to, or placing under, any foreign registry or flag of any such vessel;

(c) The entrance into any contract, agreement, or understanding to construct such vessel within the United States for, or to be delivered to, a person not a citizen of the United States;

(d) The making of agreements or the effecting of understandings whereby there is vested in or for the benefit of any

person not a citizen of the United States, the controlling interest or the majority of the voting power in a corporation which is organized under the laws of the United States or any State, Territory, District, or Possession thereof, and which owns such a vessel and which transaction is not otherwise subject to the provisions of section 37 of the Shipping Act, 1916, as amended; and

(e) The departure from any port of the United States of any vessel which was constructed in whole or in part within the United States, has not been documented under the laws of the United States, and has never cleared for any foreign port.

[G.O. 58, 4th Rev., 28 F.R. 11823, Nov. 6, 1963]

§ 221.5 Types of vessels approved by § 221.4.

The following types of vessels are approved by § 221.4: Undocumented vessels designed and fabricated specifically for recreational or commercial use, whether constructed or to be constructed when possessing all of the following characteristics:

(a) Having an overall length of 65 feet or less;

(b) Designed or equipped for propulsion by an engine or engines of the reciprocating type, totalling 600 horsepower (manufacturer's rated horsepower) or

less;

(c) Designed for a full load displacement of less than 45 tons (For the purposes of this Order, it will be presumed that a vessel of less than 55 feet in length will have a displacement less than 45 tons. For vessels between 55 feet and 65 feet in length, the owner must supply to the local Customs inspector at the port of departure (1) a certificate of the builder as to the displacement tonnage of the vessel, or (2) a certificate of a naval architect as to the displacement tonnage of the vessel, or (3) a certificate of the owner as to the key dimensions of the vessel (length, beam and draft));

(d) Not of hydrofoil design;

(e) Not equipped with any navigational apparatus of the kinds or types requiring a validated license from the Bureau of International Commerce; and

(f) Not equipped with any munitions items of the kinds or types requiring a validated license from the State Department.

[G.O. 58, 4th Rev., 28 F.R. 11823, Nov. 6, 1963] § 221.6

Exceptions to approvals granted

by SS 221.4 and 221.5.

Approval granted by and defined in §§ 221.4 and 221.5 shall not apply to any transactions involving nationals of Country Group countries X, Y, and Z hereinafter named, whether residing in the United States or in foreign countries, or any person not a citizen of the United States residing in any such country, or to vessels exported to destinations within such countries. Country Group X countries are: Hong Kong and Macao; Country Group Y countries are: Albania, Bulgaria, Czechoslovakia, East Germany (Soviet Zone of Germany and the Soviet Sector of Berlin), Estonia, Hungary, Latvia, Lithuania, Outer Mongolia, and the Union of Soviet Socialist Republics; Country Group Z countries are: China, including Manchuria (and excluding Taiwan (Formosa) (includes Inner Mongolia; the provinces of Tsinghai and Sikang; Sinkiang; Tibet; the former Kwantung Leased Territory, the present Port Arthur Naval Base Area and Liaoning Province), North Korea, Communist-controlled area of Viet Nam, and

Cuba.

[G.O. 58, 4th Rev., Amdt. 1, 31 F.R. 10642, Aug. 10, 1966]

§ 221.7 Approval of charters of certain vessels to aliens.

(a) The Department of Commerce, Maritime Administration, hereby approves under sections 9 and 37 of the Shipping Act, 1916, as amended (52 Stat. 964; 40 Stat. 901; 46 U.S.C. 808 and 835) the charter to a person not a citizen of the United States of any vessel (including space in such vessel) documented under the laws of the United States, or the last documentation of which was under the laws of the United States, or owned in whole or in part by any person a citizen of the United States, or by a corporation organized under the laws of the United States or of any State, Territory, District or possession thereof, for a period of not more than six (6) months, or

for a voyage or voyages the duration of which will probably not exceed six (6) months, except:

(1) Demise or bareboat charters.

(2) For the carriage of cargoes of any kind to or from the Soviet Union, Latvia, Lithuania, Estonia, Czechoslovakia, Hungary, Bulgaria, Albania, North Korea, the Soviet Zone of Germany, Manchuria, Communist China, the Communist-controlled area of Viet Nam, Cuba, or Southern Rhodesia.

(3) For use in the fisheries.

(b) A copy of any such charter, as executed, which is approved by this Section shall be filed with the Secretary of the Maritime Administration as soon as may be practicable, but in any event not later than twenty (20) days after the beginning of the charter period or within such further time as may be permitted by the Maritime Administration.

(c) When any charter, subcharter, contract of affreightment, lease or contract for the chartering of space with a non-citizen declares, states or provides that the duration thereof is to be, or may be, for a period in excess of six (6) months, such charter, subcharter, contract of affreightment, lease or contract, shall be deemed to be for the entire period of time specifically declared therein, notwithstanding the inclusion of a special provision or provisions therein that the period of the duration in excess of six (6) month is to be subject to the approval of the Maritime Administration, or the inclusion therein of a provision permitting the substitution of another vessel other than a vessel of United States registry. To become effective such charter, subcharter, contract of affreightment, lease or contract will require the prior approval of the Maritime Administration prior to the date of the commencement of the first six (6) months.

(d) The duration or period of time of any new charter, lease or contract with the same non-citizen charterer, or with any non-citizen charterer, which is an affiliate, or associate, or subsidiary, or related company, or holding company of the original non-citizen charterer, covering the same vessel and entered into

and executed within thirty (30) days after the termination of any charter, lease or contract or consecutive voyages, approval to which is granted by the blanket approval provided for hereinabove, is to be added to the duration or period of time covered by the previous charter, lease or contract, and, if the duration of the two charters, leases or contracts, when added together, cover a period in excess of six (6) months, such new charter, lease or contract shall be construed as a renewal or extension of the old charter, lease or contract and will require the prior approval of the Maritime Administration before it can become effective, notwithstanding the inclusion in said new charter, lease or contract of a provision permitting the substitution of another vessel other than a vessel of United States registry. [G.O. 59, 2d Rev., 22 F.R. 2910, Apr. 25, 1957, as amended by Amdt. 2, 32 F.R. 4122, Mar. 16, 1966]

§ 221.11 Citizenship declarations by owners or mortgagees of vessels of the United States as required by section 40 of the Shipping Act, 1916, as amended.

Whenever any bill of sale, mortgage, hypothecation, or conveyance of any vessel, or part thereof, or interest therein, is presented to any Officer in Charge of Marine Inspection, U.S. Coast Guard to be recorded, the vendee, mortgagee, or transferee shall file therewith, as provided by section 40 of the Shipping Act, 1916, as amended (sec. 4, 40 Stat. 902; 46 U.S.C. 838), a declaration or declarations as prescribed by this § 221.11.

(a) Form MA-4557 and, in connection therewith when appropriate, Form MA4557-A shall be filed by a corporation; Form MA-4558 shall be filed by an individual; Form MA-4559 shall be filed by a partner, joint owner, or member of copartnership or unincorporated company or association; Form MA-4560 and, in connection therewith when appropriate, Form MA-4560-A shall be filed by a mutual insurance company; Form MA4561 shall be filed by a mutual savings bank; Form MA-4562 shall be filed by a corporation within the purview of Public Law 85-902 (72 Stat. 1736); and Form MA-4563 shall be filed by a trustee to

(Date naturalized) Naturalization Certificate No.

that the president or other chief executive officer and chairman of the board and all directors of said corporation are citizens of the United States of America, **except alien directors which represent a minority of the number of directors necessary to constitute a quorum as provided under Public Law 86-327, 73 Stat. 597, September 21, 1959; that' the controlling interest (or) seventy-five (75) per centum of the interest in said corporation is owned by citizens of the United States of America; that the title to a majority of the stock (or) seventy-five per centum of the stock of said corporation is vested in citizens of the United States of America free from any trust or fiduciary obligation in favor of any person not a citizen of the United States of America, and that such proportion of the voting power of said corpora

See footnotes on page 36.

tion is vested in citizens of the United States; that through no contract or understanding is it so arranged that the majority of the voting power (or)* more than twenty-five (25) per centum of the voting power of said corporation may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States of America; that by no means whatsoever is the control of said corporation (or) the control of any interest in said corporation in excess of twentyfive (25) per centum conferred upon or permitted to be exercised by any person who is not a citizen of the United States of America.

This declaration is to be taken whenever any bill of sale, mortgage, hypothecation, or conveyance of any vessel, or part thereof, or interest therein, is presented by a corporation to any Officer in Charge of Marine Inspection, U.S. Coast Guard for recording.

**The "except" clause shall be deleted when this declaration is executed in behalf of corporations under Title VI, Merchant Marine Act, 1936, as amended.

This date must be within 30 days of date of declaration.

The exact figure as disclosed by the stock books of the company must be given and the per centum figure must be not less than 65 per centum, except for an owner operating the vessel in the coastwise trade the per centum figure must be not less than 90 per centum.

1 Insert "President," "Secretary," or "Treasurer," or any other duly authorized official thereof, as the case may be.

2 Insert full corporate name of company. Insert business address of corporation. • Strike out word or expression not

appropriate.

5 Insert other means whereby vessel became entitled to American registry, when appropriate.

I.e., document now surrendered, or document last surrendered heretofore (46 U.S.C. 808).

Strike out reference to naturalization if party is native-born citizen. If more than one vessel is involved, only one form of declaration need be filled if by a notation inserted in the clause immediately prior to the clause about the citizenship of declarant, appropriate reference is made to a schedule added to said declaration, in which schedule shall be inserted the name and date of each additional vessel as required for the first vessel, owned by or under mortgage to the party on behalf of whom said declaration is made.

statement of a material fact in any such declaration shall be guilty of a misdemeanor and subject to a fine of not more than $5,000, or to imprisonment for not more than five years, or both."

Form MA-4557-A (Rev. 2-54)

(Explanatory clause prescribed by Maritime Administration for execution and attachment as and when desired by party making declaration on behalf of corporate owner or mortgagee of vessel on form (MA4557) prescribed by Maritime Administration pursuant to section 40 of the Shipping Act, 1916, as amended.)

The basis for the statements of facts above recited with respect to the stock ownership and control of voting power of the company, is as follows:

(1) The stock books of the company show that on 19, b per centum of the outstanding stock of the company was owned of record by persons whose addresses on the stock books of the company are in the United States; (2) I know of no substantial change in such percentage since that date; and (3) investigation has failed to disclose the existence of facts or relationships with respect to voting power and control contrary to those above recited.

*This declaration to be taken whenever any bill of sale, mortgage, hypothecation, or conveyance of any vessel, or part thereof, or interest therein, is presented by a person in case vessel, or part thereof, or interest therein, is owned by one individual, not in partnership, joint ownership, or an unincorporated company or an association. If more than one vessel is involved, only one form of declaration need be filed if by a notation inserted in the clause immediately prior to the clause about the citizenship of declarant, appropriate reference is made to a schedule added to said declaration in which

schedule shall be inserted the name and data of each additional vessel as required for the first vessel, owned by or under mortgage to the party on behalf of whom said declaration is made.

1 Strike out words not appropriate. 'Insert other means whereby vessel became entitled to American registry, when appropriate.

This declaration is to be taken whenever any bill of sale, mortgage, hypothecation, or conveyance of any vessel, or part thereof, or interest therein, is presented by a copartnership, association, or unincorporated company to any Officer in Charge of Marine Inspection, U.S. Coast Guard for recording.

on

(Place of birth)

(City and State)

(or) by

(Date of birth)

virtue of my naturalization before the

(Name of court)

on

county, or State)

for

(District,

(Date naturalized) having been issued Naturalization Certificate No. ‒‒‒‒‒‒‒‒; that said copartnership1 (or) unincorporated company (or) association is composed of partners (or)

(Number)

members; that each partner1 (or) member of said firm, copartnership, unincorporated company, or association is a citizen of the United States; that through no contract or understanding is it so arranged that the controlling interest (or) more than twenty-five (25) per centum of the control of or interest in said vessel is vested in, conferred upon, or permitted to be exercised by, any person who is not a citizen of the United States.

(Signature)

If more than one vessel is involved, only one form of declaration need be filed if by a notation inserted in the clause immediately prior to the clause about the citizenship of declarant, appropriate reference is made to a schedule added to said declaration, in which schedule shall be inserted the name and data of each additional vessel as required for the first vessel, owned by or under mortgage to the party on behalf of whom said declaration is made.

Penalty for false statement: Section 40, Shipping Act, 1916, as amended, provides "Whoever knowingly makes any false statement of a material fact in any such declaration shall be guilty of a misdemeanor and subject to a fine of not more than $5,000,

1 Strike out words not appropriate.

2 Insert full corporate name of company. 'I. e., document now surrendered, or document last surrendered heretofore (U. S. C., title 46, sec. 808).