Supporting Statement

for

Vessel Documentation

OMB No.: 1625-0027

COLLECTION INSTRUMENTS: CG-1258, CG-1261, CG-1270, CG-1280, 

CG-1340, CG-1356, CG-4593, CG-5542, CG-7042, CG-7043 and Instruction 

A.  Justification

1.  Circumstances making collection of information necessary.  

Federal documentation is a type of national registration which serves to
establish a vessel’s: (a) nationality; (b) eligibility to engage in a
particular employment; and (c) eligibility to become the object of a
preferred ship’s mortgage.  In the field of international commerce,
documentation establishes the nationality of a vessel and confers the
privileges, protections, and immunities contemplated by longstanding
international law and custom.  The availability of capital for maritime
financing hinges upon the existence of the preferred mortgage as
security for loans against vessels.  The collection and recordkeeping of
information concerning the documentation of vessels is promulgated in
the Shipping Act of 1916, as amended, section 27 of the Merchant Marine
Act of 1920, as amended, (Jones Act), 46 U.S.C. Chapters 121, 123, 125,
and 313. 

This information collection ensures compliance with vessel documentation
regulations (46 CFR parts 67 & 68) by including the lease finance
options as reflected in the amendments provided by Congress under the
Coast Guard and Maritime Transportation Act of 2004 (Pub. L. 108-293). 
These regulations address statutory amendments eliminating certain
barriers to seeking foreign financing by lease for U.S.-flag vessels. 
They clarify the information needed to determine the eligibility of a
vessel financed in this manner for a coastwise endorsement.  The
National Vessel Documentation Center (NVDC) performs the vessel
documentation functions for the Federal Government.  

This information collection supports the following strategic goals:

Coast Guard

Mobility 

Prevention Policy Directorate (CG-5P)

Economic Growth and Trade/Mobility:  Reduce interruptions and
impediments that restrict the economical movement of goods and people,
while maximizing safe, effective, and efficient waterways for all users.
 

2.  Purpose of the information collection.  

The information collected will establish the eligibility of a vessel to:
(a) be documented as a “vessel of the United States;” (b) engage in
a particular trade; and/or (c) become the object of a preferred ship’s
mortgage.  These determinations will be made by a documentation officer
of the United States Coast Guard or other authorized Coast Guard
officials by comparing the information collected with the various
statutory requirements imposed by the Shipping Act of 1916, as amended,
section 27 of the Merchant Marine Act of 1920, as amended, (Jones Act),
46 U.S.C. Chapters 121, 123, 125, and 313.  The information requested is
needed to make the above-mentioned determinations, without which a
vessel would be denied eligibility for benefits as listed. Also,
non-maritime agencies such as the Internal Revenue Service rely on this
information in determining eligibility for investment tax credits and
the like.  

This information collection determines if the entities that desire to
avail themselves of the lease finance provisions are eligible for a
coastwise endorsement in accordance with the Coast Guard and Maritime
Transportation Act of 2004 (Pub. L. 108-293) statutory amendments.  

3.  Consideration of the use of improved technology.

Information may be submitted by mail, fax or electronically submitted
via e-mail to the NVDC, depending on the type of documentation action
needed.  Details on e-mail & fax submissions are at—   HYPERLINK
"http://www.uscg.mil/hq/cg5/nvdc/nvdcpdf.asp" 
http://www.uscg.mil/hq/cg5/nvdc/nvdcpdf.asp .  Forms are available at—
  HYPERLINK "http://www.uscg.mil/hq/cg5/nvdc/nvdcforms.asp" 
http://www.uscg.mil/hq/cg5/nvdc/nvdcforms.asp .  We estimate that at
this time 59% of the reporting and recordkeeping requirements are done
electronically.

4.  Efforts to identify duplication. 

There are no other Federal agencies with similar programs.  Other
agencies involved in maritime affairs (i.e., Maritime Administration
(MARAD)) collect no similar information and in many cases must rely upon
the information collected in connection with the documentation of
vessels.  There is no similar information available that could be used
or modified for these purposes.

5.  Methods to minimize the burden to small entities if involved.  

The information collection will involve some small organizations,
including small businesses, individuals, non-profit organizations,
municipal governments, small shipbuilders, boat dealers, and lending
institutions.  Due to various statutory requirements imposed by the
Shipping Act of 1916, as amended, section 27 of the Merchant Marine Act
of 1920, as amended, (Jones Act), 46 U.S.C. Chapters 121, 123, 125, and
313, the minimum number of requirements and the collection of
information is consonant with the current statutes, the possibility of
differing compliance or reporting requirements or timetables for small
entities is precluded.  

6.  Consequences to the Federal program if collection were conducted
less frequently.  

The frequency of submission of information is the minimum consistent
with the maintenance of internal records and enforcement of substantive
laws in effect.  Presently, the regulations clearly mandate the
frequency of use, and changing the requirements would make the
regulations less effective.  

7.  Special collection circumstances.  

This information collection is conducted in manner consistent with the
guidelines in 5 CFR 1320.5(d)(2).  

8.  Consultation.  

A 60-day Notice will be published in the Federal Register to obtain
public comment on this collection.  

9.  Provide any payment or gift to respondents.  

There is no offer of monetary or material value for this information
collection.  

10.  Describe any assurance of confidentiality of information.  

The information collected is generally not of a type considered
confidential by those supplying it.  However, those forms requiring
confidential information have a “Privacy Act” statement on them. 
The respondent furnishes any confidential information on a voluntary
basis for benefits.  Information related to this collection is
maintained in the Coast Guard’s Marine Information for Safety and Law
Enforcement (MISLE) database.  MISLE is covered by a System of Records
Notice (SORN).   

11.  Additional justification for any questions of a sensitive nature.

There are no questions of sensitive language.

12.  Estimate of annual hour and cost burdens to respondents.  

The estimated annual number of respondents is 213,428.  

The estimated annual number of responses is 577,821.  

The estimated annual hour burden is 77,619.  

The estimated annual cost burden is $4,113,807.  

The burden to respondents is provided in Appendix A.  We estimate that
the time to complete various documentation-related forms vary from about
5 to 30 minutes and that an owner/operator/agent will complete the form
(see table below).  The position of an owner/operator/agent is
equivalent to a GS-09.  The wage rate used is in accordance with the
current edition of COMDTINST 7310.1(series) for “Out-Government”
personnel.  

Form Number / Name	Burden per Form

CG-1258 // Application for Initial, Exchange, or Replacement of
Certificate of Documentation; Redocumentation with optional  attachments
30 min. (0.5 hrs)

CG-1261 // Builder's Certification and First Transfer of Title	30 min.
(0.5 hrs.)

CG-1270 // Certificate of Documentation	3 min. (0.05 hrs)

CG-1280 // Vessel Renewal Notification Application for Renewal	5 min.
(0.084 hrs.)

CG-1340 // Bill of Sale	20 min (0.334 hrs.)

CG-1356 // Bill of Sale by Government Entity Pursuant to Court Order of
Administrative Degree of Forfeiture	20 min (0.334 hrs.)

CG-4593 // Application, Consent, and Approval for Withdrawal of
Application for Documentation or Exchange of Certificate of
Documentation	10 min. (0.167 hrs.)

CG-5542 // Optional Application for Filing	10 min. (0.167 hrs.)

CG-7042 // Authorization for Credit Card Transaction	5 min. (0.084 hrs.)

CG-7043 // Abstract of Title / Certified COD Request	5 min. (0.084 hrs.)



13.  Estimate of annualized capital and start-up costs.  

There are no capital, start-up or maintenance costs associated with this
information collection.  

14.  Estimate of annualized Federal Government costs.  

The estimated annual Federal Government cost is $12,181,843 (see
Appendix B).  The Coast Guard vessel documentation program costs include
both staffing and non-staffing costs.  Non-staffing costs include
operating, building rental, IT system and postage costs.  

15.  Explain the reasons for change in burden.  

The change in the burden is an ADJUSTMENT due to a change (i.e.,
increase) in the estimated annual number of responses.  With one
exception, there is no proposed change to the reporting or recordkeeping
requirements of this collection.  This ICR is revised to account for the
recordkeeping burden of form CG-1270 (Certificate of Documentation
(COD)).  A COD is issued by the Coast Guard to a vessel owner.  We
estimate the recordkeeping burden of 3 minutes per response.  CODs were
issued in the past, but not accounted for under 1625-0027.  The
reporting and recordkeeping requirements, and the methodology for
calculating burden, remain unchanged.  

16.  Plans for tabulation, statistical analysis and publication.  

This information collection will not be published for statistical
purposes.  

17.  Approval for not explaining the expiration date for OMB approval.  

The Coast Guard will display the expiration date for OMB approval of
this information collection.  

18.  Exception to the certification statement.  

The Coast Guard does not request an exception to the certification of
this information collection.  

B.  Collection of Information Employing Statistical Methods

This information collection does not employ statistical methods.  

  See DHS/USCG-013 - Marine Information for Safety and Law Enforcement
(MISLE), June 25, 2009 74 FR 30305 at   HYPERLINK
"http://www.dhs.gov/system-records-notices-sorns" 
http://www.dhs.gov/system-records-notices-sorns   

  This figure is based upon the total number of documented vessel owners
in the United States Coast Guard’s Marine Information Safety and Law
Enforcement (MISLE) database.  

  This figure is based upon the total number of vessel documentation
forms submitted to the NVDC, plus the number of Certificates of
Documentation issued by the NVDC.  .

1625-0027  

  PAGE  4  of   NUMPAGES  4 

