What You Need to Know About the Maritime Administration’s Small Vessel Waiver Program

The Maritime Administration can, in certain cases, issue waivers of the “U.S.-build” requirement under the Jones Act, for vessels of unknown build or foreign vessels to operate in the U.S. as commercial passenger vessels.

The application process

To allow for these waivers, the Administration has set up specific procedures. For the application process, the Maritime Administration requires the following:

1. A $500 application fee per request (non-refundable)

2. Completed application

3. Period of public notice, including the publication of the vessel’s intended use for a period of 30 days in the Federal Register

Following the public notice period, the Administration will use all available sources to determine whether or not issuing a waiver will cause any “undue adverse effect” on the existing operators and shipbuilders. A waiver will not be issued if the Administration finds it possible that such a waiver would cause undue damage.

While most waivers are approved, there is a review procedure and a waiver revocation process if it is determined that there was fraud on the application. Once a waiver is issued, it becomes part of the vessel’s documentation, and stays with the vessel even if the vessel is sold.

Requirements

Basic requirements for a vessel to qualify:

• Must be at least three years old
• When in service, the vessel cannot carry more than 12 passengers
• Intended use must only be to carry passengers. Any other activities (carrying cargo, towing, dredging, commercial fishing, salvage, etc.) will not qualify for the program
• Vessel must be owned by a U.S. citizen.
• The vessel must meet all other USCG requirements for a Coastwise Trade Endorsement before engaging in commercial service, except for the minimum five net tons requirement.

Once you receive a waiver, you should then file for a Coastwise Trade Endorsement for the passenger trade with the USCG, as this is not a waiver of any vessel documentation, vessel inspection or vessel manning requirements.

You can submit your application via the internet (recommended) or by regular mail. If you submit an application online, you can pay the application fee electronically, which will expedite your application. The waiver process takes roughly two to three months.

Helpful Links:

• Application Instructions
• Request for Small Vessel Waiver of the Passenger Vessel Services Act - Fill In/Submit FORM MA-1023 in HTML Format
• Request for Small Vessel Waiver of the Passenger Vessel Services Act - PRINT/VIEW FORM MA-1023 in PDF Format