SMALL VESSEL WAIVERS (MARADS) can be applied for in order to comply with the Jones Act. The Jones Act (also known as the Merchant Marine Act of 1920) is a century old Federal law that requires vessels operating in coastwise commerce be built in the U.S. The Jones Act restricts nonqualifying vessels from operating in inland waterways and from transporting cargo between two U.S. ports — an activity known as “cabotage.”

IN ORDER TO QUALIFY the vessel must meet the following requirements:

• Be at least 3 years old,
• Must be owned by a U.S. citizen or organization,
• Intend to carry passengers only, and no more than 12 passengers at a time when in service, and
• Qualify to be USCG documented

The process takes approximately 2-3 months. Once the MARAD is issued a Coastwise endorsement needs to be applied for with the USCG.

A MARAD stays with the vessel for its’ lifetime and transfers to the new owner if the boat is sold.