46 CFR § 68.17 - Restrictions.

---
identifier: "/us/cfr/t46/s68.17"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "46 CFR § 68.17 - Restrictions."
title_number: 46
title_name: "Shipping"
section_number: "68.17"
section_name: "Restrictions."
chapter_name: "COAST GUARD, DEPARTMENT OF HOMELAND SECURITY"
subchapter_number: "G"
subchapter_name: "DOCUMENTATION AND MEASUREMENT OF VESSELS"
part_number: "68"
part_name: "DOCUMENTATION OF VESSELS: EXCEPTIONS TO COASTWISE QUALIFICATION"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "46 U.S.C. 3306, 3703, 8105; sec. 617, Pub. L. 111-281, 124 Stat. 2905; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277; DHS Delegation No. 00170.1, Revision No. 01.4."
regulatory_source: "CGD 80-107, 47 FR 27511, June 24, 1982, unless otherwise noted."
cfr_part: "68"
---


# 68.17 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 § 68.3. 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. Redesignated and amended by USCG-2005-20258, 71 FR 61418, Oct. 18, 2006]