Proposed Rule2025-12087
Deregulatory-American Fisheries Act Program Update; Simplifying the Application Process
Primary source
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Published
July 1, 2025
Issuing agencies
Transportation DepartmentMaritime Administration
Abstract
On May 1, 2019, MARAD published an Advanced Notice of Proposed Rulemaking (ANPRM), titled "How Best to Simplify Filing Statements of American Fisheries Act Citizenship: Policy and Regulatory Review," soliciting public comment on steps MARAD could take to simplify and modernize the process for evidencing U.S. citizenship for owners of U.S.-flag fishing industry vessels of 100 feet or greater in registered length. In response to public support for updating our regulations, MARAD is soliciting public comments on this Notice of Proposed Rulemaking (NPRM). Consistent with comments received, the proposed rule would simplify the annual citizenship filing procedures under the American Fisheries Act (AFA) program in order to reduce costs or administrative burdens placed on owners of fishing industry vessels. MARAD proposes (1) to simplify and streamline annual renewal filing for vessel owners whose citizenship information has not changed since their affidavit of U.S. citizenship (AFA Affidavit) filing; (2) to update acceptable methods for evidencing citizenship of publicly traded entities; and (3) to eliminate requirements to provide personally identifiable information (i.e., social security numbers and dates and places of birth for corporate officers and directors) in affidavits of AFA citizenship.
Full Text
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<title>Federal Register, Volume 90 Issue 124 (Tuesday, July 1, 2025)</title>
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[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Proposed Rules]
[Pages 28519-28524]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12087]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 356
[Docket Number MARAD-2025-0091]
RIN 2133-AB91
Deregulatory--American Fisheries Act Program Update; Simplifying
the Application Process
AGENCY: Maritime Administration (MARAD), Department of Transportation
(DOT)
ACTION: Notice of proposed rulemaking, request for comments.
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SUMMARY: On May 1, 2019, MARAD published an Advanced Notice of Proposed
Rulemaking (ANPRM), titled ``How Best to Simplify Filing Statements of
American Fisheries Act Citizenship: Policy and Regulatory Review,''
soliciting public comment on steps MARAD could take to simplify and
modernize the process for evidencing U.S. citizenship for owners of
U.S.-flag fishing industry vessels of 100 feet or greater in registered
length. In response to public support for updating our regulations,
MARAD is soliciting public comments on this Notice of Proposed
Rulemaking (NPRM). Consistent with comments received, the proposed rule
would simplify the annual citizenship filing procedures under the
American Fisheries Act (AFA) program in order to reduce costs or
administrative burdens placed on owners of fishing industry vessels.
MARAD proposes (1) to simplify and streamline annual renewal filing for
vessel owners whose citizenship information has not changed since their
affidavit of U.S. citizenship (AFA Affidavit) filing; (2) to update
acceptable methods for evidencing citizenship of publicly traded
entities; and (3) to eliminate requirements to provide personally
identifiable information (i.e., social security numbers and dates and
places of birth for corporate officers and directors) in affidavits of
AFA citizenship.
DATES: Comments should be filed on or before September 2, 2025. Late-
filed comments filed will be considered to the extent practicable.
ADDRESSES: You may submit comments identified by DOT Docket Number
MARAD-2025-0091 by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">www.regulations.gov</a>. Search
using the DOT Docket Number (see above) and follow the instructions for
submitting comments.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#f7a5829b929a969c9e999084d9bab6a5b6b3b7939883d9909881"><span class="__cf_email__" data-cfemail="edbf988188808c8684838a9ec3a0acbfaca9ad898299c38a829b">[email protected]</span></a>. Include the DOT Docket
Number in the subject line of the message.
<bullet> Mail/Hand-Delivery/Courier: Docket Management Facility;
U.S. Department of Transportation, 1200 New Jersey Avenue SE, Room W12-
140, Washington, DC 20590. If you would like to know that your comments
reached the facility, please enclose a stamped, self-addressed postcard
or envelope. The Docket Management Facility is open 9:00 a.m. to 5:00
p.m., Monday through Friday, except on federal holidays.
Note: We recommend that you include your name and a mailing
address, an email address, or a telephone number in the body of your
document so that we can contact you if we have questions regarding
your submission. If you submit your inputs by mail or hand-delivery,
they must be submitted in an unbound format, no larger than 8\1/2\
by 11 inches, single-sided, suitable for copying and electronic
filing. All submissions received should include the agency name and
docket number or Regulation Identifier Number (RIN) for this
rulemaking.
Instructions: All comments received will be posted without change
to the docket at <a href="http://www.regulations.gov">www.regulations.gov</a>, including any personal
information provided. For detailed instructions on submitting comments
and additional information on the rulemaking process, see the section
entitled Public Participation.
Privacy Act: Anyone can search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). For information on
DOT's compliance with the Privacy Act, please visit <a href="https://www.transportation.gov/privacy">https://www.transportation.gov/privacy</a>.
FOR FURTHER INFORMATION CONTACT: Michael C. Pucci, Office of the Chief
Counsel, Division of Maritime Programs, (202) 366-5167 or via email at
<a href="/cdn-cgi/l/email-protection#eaa78389828b8f86c4ba9f898983aa8e859ec48d859c"><span class="__cf_email__" data-cfemail="ce83a7ada6afaba2e09ebbadada78eaaa1bae0a9a1b8">[email protected]</span></a>. Persons who use a telecommunications device for
the deaf (TDD) may call the Federal Information Relay Service (FIRS) at
1-800-877-8339 to contact the above individual during business hours.
The FIRS is available twenty-four hours a day, seven days a week, to
leave a message or question. You will receive a reply during normal
business hours. You may send mail to Department of Transportation,
Maritime Administration, Office of the Chief Counsel, Division of
Legislation and Regulations, W24-220, 1200 New Jersey Avenue SE,
Washington, DC 20590-0001.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
As required by 5 U.S.C. 553(b)(4), this document, including a
summary of the rule, and all comments may be viewed online through the
Federal eRulemaking portal at <a href="http://www.regulations.gov">www.regulations.gov</a>. An electronic copy
of this document may also be downloaded by accessing the Office of the
Federal Register's home page at: <a href="http://www.federalregister.gov">www.federalregister.gov</a>.
Background
On May 1, 2019, MARAD published an Advanced Notice of Proposed
Rulemaking (ANPRM), titled ``How Best to Simplify Filing Statements of
American Fisheries Act Citizenship: Policy and Regulatory Review,'' in
the Federal Register (84 FR 18469) soliciting public comment on steps
MARAD could take to simplify and modernize the process for evidencing
U.S. citizenship for owners of U.S.-flag fishing industry vessels of
100 feet or greater in registered length in order to reduce the
regulatory burden for annual filers. MARAD has developed this NPRM
based on recommendations we received in response to our request for
comments to that ANPRM as well as recommendations we received in
response to our ANPRM on reforming our Maritime Programs citizenship
requirements titled ``How to Best Evidence Corporate Citizenship:
Policy and Regulatory Review'' (Corporate Citizenship ANPRM) published
in the Federal Register (84 FR 18468) on the same day.
MARAD welcomes your comments to ensure that agency programs benefit
from current and comprehensive best practices.
Scope of Comments
MARAD is interested in learning how it could reduce or remove
regulatory burdens on the public. Accordingly, commenters may want to
focus on the following: (1) whether there are less burdensome methods
to evidence corporate citizenship annually; (2) how those alternatives
may be applied to improve MARAD program administration; and (3) how
program participants will benefit from a revision of our AFA
regulations.
[[Page 28520]]
Content of Comments
MARAD is interested in information on how any changes to these
regulations could impact small businesses, either positively or
negatively. In describing a burden placed on your organization by our
regulations or potential changes to the regulations; direct experience
and quantifiable data are more useful than anecdotal descriptions. If
the commenter believes that there is a less burdensome alternative, the
commenter should describe that alternative in detail.
Discussion of Comments Received on the ANPRM
In response to the agency's ANPRM seeking public comment on ways to
simplify annual requirements to evidence citizenship under the American
Fisheries Act, MARAD received one comment from Mr. William N. Myhre of
K & L Gates, which included several recommendations. The agency
responds as follows to the commenter's recommendations.
The commenter recommended MARAD consider permitting streamlined
certifications for annual citizenship renewals when there has been no
material change to the information contained in the prior year's AFA
Affidavit.
MARAD agrees with this recommendation. Permitting an optional
certification would reduce the burden of annual filing for those
entities whose ownership information has not changed since the last AFA
Affidavit was filed while not impacting MARAD's ability to make U.S.
citizenship determinations. MARAD finds that such a certification would
be consistent with the requirements of 46 U.S.C. 12113(e)(1) by
incorporating by reference and certifying the citizenship information
contained in the last AFA Affidavit submitted by the filer. In the
proposed section 356.5(g), MARAD includes a provision for optional
annual certification of citizenship information. MARAD proposes to
enclose a copy of our form of annual certification with each annual
fishery endorsement eligibility approval letter it issues to filers.
The commenter further suggested MARAD reconsider the regulatory
requirements (46 CFR 356.5(g) and 356.13(b), respectively) for vessel
owners to notify the Citizenship Approval Officer within 30 days of any
change in the information set forth in the AFA Affidavit or with
respect to documents required to be filed pursuant to 46 CFR 356.13.
The commenter argued that these requirements place a significant burden
on the vessel owner to review each of the various regulatory
requirements on a monthly basis to ensure timely compliance and avoid
risking loss of the fishing vessel's eligibility to operate in the
domestic fishing industry.
MARAD disagrees. As the commenter notes, most AFA vessel owners are
closely-held entities whose ownership does not change on an annual
basis. Additionally, MARAD has not found that compliance with these
requirements has affected owners' ability to maintain fishery
endorsement eligibility for their vessels. As such, MARAD does not find
the 30-day notification requirements to be burdensome or to represent
an undue risk of loss of fishery endorsement eligibility.
The commenter also recommended updating the existing regulations to
reflect current statutory citations that have changed since the
regulations were implemented in 2000 and including a chart containing
the documentary requirements for regulated transactions.
MARAD agrees. MARAD is proposing to amend part 356 to update its
statutory citations. MARAD is planning to develop a chart of
documentary requirements as guidance for publication on our AFA web
page.
Additional Amendments
In response to the comments received in response to the May 1,
2019, Corporate Citizenship ANPRM (84 FR 18468), MARAD similarly
proposes to amend the form of AFA Affidavit found at 46 CFR 356.5 with
respect to those paragraphs (Nos. 4 and 5) applicable to direct and
indirect owners that are publicly traded entities. Pursuant to 46
U.S.C. 12113(e)(2), the form of AFA Affidavit must conform to the
extent practicable to the form of affidavit found at 46 CFR 355.2,
which is the form used by participants to satisfy citizenship
requirements of MARAD's promotional programs (e.g., Capital
Construction Fund, Maritime Security Program, and vessel finance
guarantees). As MARAD has found the form of affidavit at 46 CFR 355.2
to be outdated with respect to its provisions for publicly traded
entities, MARAD is proposing to update that form of affidavit in a
separate Notice of Proposed Rulemaking under Docket Number MARAD-2025-
0087.
The proposed rule at section 356.7 would provide publicly traded
entities flexibility in applying several reasonably available methods
to ensure ongoing compliance with AFA ownership requirements, including
satisfying the U.S. address requirement of the fair inference rule for
determining the requisite percentage of U.S. ownership of outstanding
stock. MARAD is not adjusting the current non-citizen ownership
percentage limits of the fair inference method.
MARAD proposes eliminating requirements to provide social security
numbers and dates and places of birth of corporate officers and
directors in the affidavit of AFA citizenship provided at 46 CFR 356.5.
Inclusion of this information in the affidavit of AFA citizenship does
not significantly improve U.S. ownership certainty and creates an
unnecessary risk of release of personally identifiable information. In
any instance of doubt, MARAD still retains the authority to request
such information from submitting parties.
Public Participation
How long do I have to submit comments?
We are providing a 60-day comment period.
How do I prepare and submit comments?
To ensure that your comments are correctly filed in the Docket,
please include the Docket Number shown at the beginning of this
document in your comments.
Comments may be submitted to the docket electronically by logging
onto the Docket Management System website at <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Search using the MARAD docket number and follow
the online instructions for submitting comments.
Please note that pursuant to the Data Quality Act, for substantive
data to be relied upon and used by the agency, it must meet the
information quality standards set forth in the OMB and DOT Data Quality
Act guidelines. Accordingly, we encourage you to consult the guidelines
in preparing your comments. OMB's guidelines may be accessed at <a href="http://www.whitehouse.gov/omb/fedreg/reproducible.html">http://www.whitehouse.gov/omb/fedreg/reproducible.html</a>. DOT's guidelines may
be accessed at <a href="http://www.bts.gov/programs/statistical_policy_and_research/data_quality_guidelines">http://www.bts.gov/programs/statistical_policy_and_research/data_quality_guidelines</a>.
How can I be sure that my comments were received?
If you wish Docket Management to notify you upon its receipt of
your comments, enclose a self-addressed, stamped postcard in the
envelope containing your comments. Upon receiving your comments, Docket
Management will return the postcard by mail.
[[Page 28521]]
How do I submit confidential business information?
Confidential business information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
the proposed rule contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this proposed rule, it is important
that you clearly designate the submitted comments as CBI. Please mark
each page of your submission that constitutes CBI as ``PROPIN'' to
indicate it contains proprietary information. MARAD will treat such
marked submissions as confidential under the FOIA, and they will not be
placed in the public docket of this proposed rule. Submissions
containing CBI should be sent to the email address provided in the FOR
FURTHER INFORMATION CONTACT section. In addition, you should submit two
copies, from which you have deleted the claimed confidential business
information, to Docket Management at the address given above under
ADDRESSES. Any comments MARAD receives which are not specifically
designated as CBI will be placed in the public docket for this
rulemaking.
Will the agency consider late comments?
MARAD will consider all comments that Docket Management receives
before the close of business on the comment closing date indicated
above under DATES. To the extent possible, we will also consider
comments that Docket Management receives after that date. If Docket
Management receives a comment too late for us to consider in developing
any follow-on action, we will consider that comment as an informal
suggestion for future rulemaking action.
How can I read the comments submitted by other people?
You may read the comments received by Docket Management at the
address given above under ADDRESSES. The hours of the Docket are
indicated above in the same location. You may also see the comments on
the internet. To read the comments on the internet, go to <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the online instructions for accessing the
dockets.
Please note that, even after the comment closing date, MARAD will
continue to file relevant information in the Docket as it becomes
available. Further, some people may submit late comments. Accordingly,
we recommend that you periodically check the Docket for new material.
Rulemaking Analysis and Notices
Executive Orders 12866 and DOT Rulemaking Procedures
Executive Order (E.O.) 12866 and the Department of Transportation's
administrative rulemaking procedures set forth in 49 CFR part 5,
subpart B, provide for making determinations whether a regulatory
action is ``significant'' and therefore subject to Office of Management
and Budget (OMB) review and to the requirements of E.O. 12866.
This rule is limited to streamlining annual renewal filing for
vessel owners whose citizenship information has not changed since their
most recent annual affidavit of U.S. citizenship (AFA Affidavit)
filing, updating acceptable methods for evidencing citizenship of
publicly traded entities, and eliminating requirements to provide
personally identifiable information (i.e., social security numbers and
dates and places of birth for corporate officers and directors) in
affidavits of AFA citizenship.
This NPRM is not a significant regulatory action under Executive
Order (E.O.) 12866 and DOT Order 2100.6B and, therefore it was not
reviewed by OMB. It is also not considered a major rule for purposes of
Congressional review under Public Law 104-121. This rule is limited to
updating the citations, addresses, and modernizing text.
Executive Order 14192 (Deregulation)
E.O. 14192 requires that for ``each new [E.O. 14192 regulatory
action] issued, at least ten prior regulations be identified for
elimination.'' Implementation guidance for E.O. 14192, issued by OMB
(Memorandum M-25-20, March 26, 2025), defines an E.O. 14192
deregulatory action as ``an action that has been finalized and has
total costs less than zero.'' This rule will have total costs less than
zero, and therefore is an E.O. 14192 deregulatory action.
Executive Order 13132 (Federalism)
MARAD analyzed this rulemaking in accordance with the principles
and criteria contained in Executive Order 13132 (``Federalism'') and
has determined that it does not have sufficient Federalism implications
to warrant the preparation of a Federalism summary impact statement.
This rulemaking has no substantial effect on the States, or on the
current Federal-State relationship, or on the current distribution of
power and responsibilities among the various local officials. Nothing
in this document preempts any State law or regulation. Therefore, MARAD
did not consult with State and local officials because it was not
necessary.
Executive Order 13175 (Consultation and Coordination With Indian Tribal
Governments)
MARAD does not believe that this rulemaking will significantly or
uniquely affect the communities of Indian tribal governments when
analyzed under the principles and criteria contained in Executive Order
13175 (Consultation and Coordination with Indian Tribal Governments).
Therefore, the funding and consultation requirements of this Executive
Order do not apply.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 requires MARAD to assess
whether this rulemaking would have a significant economic impact on a
substantial number of small entities and to minimize any adverse
impact. This revision proposes to (1) simplify and streamline annual
renewal filing for vessel owners whose citizenship information has not
changed since their affidavit of U.S. citizenship (AFA Affidavit)
filing; (2) update acceptable methods for evidencing citizenship of
publicly traded entities; and (3) eliminate requirements to provide
personally identifiable information (i.e., social security numbers and
dates and places of birth for corporate officers and directors) in
affidavits of AFA citizenship. These changes should be limited to
decreasing the administrative burden for program applicants. MARAD
certifies that this rulemaking will not have a significant economic
impact on a substantial number of small entities.
Privacy Impact Assessment
Section 522(a)(5) of the Transportation, Treasury, Independent
Agencies, and General Government Appropriations Act, 2005 (Pub. L. 108-
447, div. H, 118 Stat. 2809 at 3268) requires the Department of
Transportation and certain other federal agencies to conduct a privacy
impact assessment of each proposed rule that will affect the privacy of
individuals.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 requires Agencies to
evaluate whether an agency action would result in the expenditure by
State, local, and
[[Page 28522]]
tribal governments, in the aggregate, or by the private sector, of $206
million or more (as adjusted for inflation) in any 1 year, and if so,
to take steps to minimize these unfunded mandates. This rulemaking will
not impose unfunded mandates under the Unfunded Mandates Reform Act of
1995. It will not result in costs of $206 million or more to either
State, local, or tribal governments, in the aggregate, or to the
private sector, and is the least burdensome alternative that achieves
the objectives of the rule.
Regulation Identifier Number (RIN)
A regulation identifier number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda in
April and October of each year. The RIN number contained in the heading
of this document can be used to cross-reference this action with the
Unified Agenda.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) (PRA)
requires that DOT consider the impact of paperwork and other
information collection burdens imposed on the public. This proposed
rule would likely result in a reduction in the burden hours required
for information collection 2133-0530, Requirements for Vessels of 100
Feet or Greater in Registered Length to Obtain a Fishery Endorsement to
the Vessel's Documentation--46 CFR 356, because changes to the
regulation will shorten the time and effort to evidence citizenship for
many first-time applicants as well as those that must recertify. We
expect that the information collection requirement under this proposed
rule would reduce the ``hours per response'' from 11 hours to 8.5 hours
resulting in a 23% reduction in burden hours annually and having a net
cost saving of $22,086.40 annually across 500 respondents. We request
comments on this issue.
Notwithstanding any other provision of law, a person is not
required to respond to a collection of information by a federal agency
unless the collection displays a valid OMB control number.
List of Subjects in 46 CFR Part 356
Citizenship and naturalization, Fishery endorsement, Fishing
vessels, Mortgages, Mortgage trustee, Penalties, Preferred mortgages,
Reporting and recordkeeping requirements, Vessels.
For the reasons described in the preamble, MARAD proposes to amend
46 CFR part 356 as set forth below:
PART 356--REQUIREMENTS FOR VESSELS OF 100 FEET OR GREATER IN
REGISTERED LENGTH TO OBTAIN A FISHERY ENDORSEMENT TO THE VESSEL'S
DOCUMENTATION
0
1. The authority for part 356 continues to read as follows:
Authority: 46 U.S.C. 12102; 46 U.S.C. 12151; 46 U.S.C. 31322;
Pub. L. 105-277, division C, title II, subtitle I, section 203 (46
U.S.C. 12102 note), section 210(e), and section 213(g), 112 Stat.
2681; Pub. L. 107-20, section 2202, 115 Stat. 168-170; Pub. L. 114-
74; 49 CFR 1.93.
Subpart A--General Provisions
Sec. 356.3 [Amended]
0
2A. In 46 CFR 356.3
0
a. Remove paragraph (a).
0
b. Paragraphs (b) through (z) are redesignated as paragraphs (a)
through (y).
0
c. In paragraph (d)(1), remove ``46 U.S.C. 12102(c) and section 2(c) of
the 1916 Act, 46 App. U.S.C. 802(c)'' and add, in its place, ``46
U.S.C. 12113 and 46 U.S.C. 50501(d)''.
0
d. In paragraph (d)(iv)(C), remove ``46 U.S.C. 12102(c)'' and add, in
its place, ``46 U.S.C. 12113(c)''.
0
e. In paragraph (e), remove ``Maritime Administration, United States
Department of Transportation, Citizenship Approval Officer, MAR-220,
Room 7232, 400 7th Street SW, Washington, DC 20590'' and add, in its
place, ``Citizenship Approval Officer, Office of Chief Counsel,
Maritime Administration, United States Department of Transportation,
1200 New Jersey Avenue SE, Washington, DC 20590.''
0
f. In paragraph (g)(1), remove ``section 2(b) of the 1916 Act, 46 App.
U.S.C. 802(b)'' and add, in its place, ``46 U.S.C. 50501(c)''.
0
g. In paragraph (q), remove ``46 U.S.C. 12102(c) and section 2(c) of
the 1916 Act, 46 App. U.S.C. 802(c)'' and add, in its place, ``46
U.S.C. 12113(c) and 46 U.S.C. 50501(d)''.
0
h. In paragraph (t)(1), remove ``46 U.S.C. 12102(c)'' and add, in its
place, ``46 U.S.C. 12113(c)''.
0
i. In paragraph (t)(5), remove ``46 U.S.C. 12102(a)'' and add, in its
place, ``46 U.S.C. 12103''.
* * * * *
Sec. 356.5 [Amended]
0
2. In Sec. 356.5
0
a. In paragraph (a), remove ``section 2(c) of the 1916 Act, or where
applicable, section 2(b) of the 1916 Act'' and add, in its place, ``46
U.S.C. 50501(d), or where applicable, 46 U.S.C. 50501(c)''.
0
b. In paragraph (c), remove ``section 2(c) of the 1916 Act and 46 App.
U.S.C. 12102(c)'' and add, in its place, ``46 U.S.C. 50501(d) and 46
U.S.C. 12113(c)''.
0
3. In Sec. 356.5(d) revise as follows:
Sec. 356.5(d) The prescribed form of the Affidavit of U.S. Citizenship
is as follows:
State of __________)
) ss.:
County of __________)
I, (Name), of (Physical residence address, city, and state), being duly
sworn, depose and say:
1. That I am the (Title of office(s) held) of (Name of
Corporation), a corporation organized and existing under the laws of
the State of ___ (hereinafter called the ``Corporation''), with offices
at (Business address), in evidence of which incorporation a certified
copy of the Articles or Certificate of Incorporation (or Association)
is filed herewith (or has been filed) together with a certified copy of
the corporate Bylaws. [Evidence of continuing U.S. citizenship status,
including amendments to said Articles or Certificate and Bylaws, should
be filed within 45 days of the annual documentation renewal date for
vessel owners. Other parties required to provide evidence of U.S.
citizenship status must file within 30 days after the annual meeting of
the stockholders or annually, within 30 days after the original
affidavit if there has been no meeting of the stockholders prior to
that time.];
2. That I am authorized by and in behalf of the Corporation to
execute and deliver this Affidavit of U.S. Citizenship;
3. That the names of the Chief Executive Officer, by whatever
title, the Chairman of the Board of Directors, all Vice Presidents, or
other individuals who are authorized to act in the absence or
disability of the Chief Executive Officer or Chairman of the Board of
Directors, and the Directors of the Corporation are as follows: \1\
---------------------------------------------------------------------------
\1\ Offices that are currently vacant should be noted when
listing Officers and Directors in the Affidavit.
Name Title
__________
Name Title
(The foregoing list should include the officers, whether or not they
are also directors, and all directors, whether or not they are also
officers.) Each of said individuals is a Citizen of the United States
by virtue of birth in the United States, birth abroad of U.S. citizen
parents, by naturalization, or as otherwise authorized by law, except
[[Page 28523]]
(give name and nationality of all Non-Citizen officers and directors,
if any). The By-laws of the Corporation provide that (Number) of the
directors are necessary to constitute a quorum; therefore, the Non-
Citizen directors named represent no more than a minority of the number
necessary to constitute a quorum.
[Note: Select and complete the applicable paragraph 4 describing
the Corporation's stock ownership and strike inapplicable paragraphs
4.]
4. Information as to stock, where Corporation has 30 or more
stockholders:
That I have access to the stock books and records of the
Corporation; that said stock books and records have been examined and
disclose (a) that, as of (Date), the Corporation had issued and
outstanding (Number) shares of (Class), the only class of stock of the
Corporation issued and outstanding [if such is the case], owned of
record by (Number) stockholders, said number of stockholders
representing the ownership of the entire issued and outstanding stock
of the Corporation, and (b) that no stockholder owned of record as of
said date five per centum (5%) or more of the issued and outstanding
stock of the Corporation of any class. [If different classes of stock
exist, give the same information for each class issued and outstanding,
showing the monetary value and voting rights per share in each class.
If there is an exception to the statement in clause (b), the name,
address, and citizenship of the stockholder and the amount and class of
stock owned should be stated and the required citizenship information
on such stockholder must be submitted.] That the registered addresses
of (Number) owners of record of (Number) shares of the issued and
outstanding (Class) stock of the Corporation are shown on the stock
books and records of the Corporation as being within the United States,
said ___ shares being ___ per centum (___%) of the total number of
shares of said stock (each class). [The exact figure as disclosed by
the stock books of the corporation must be given and the per centum
figure must not be less than 65 per centum for a state or federally
chartered financial institution holding a Preferred Mortgage, or not
less than 95 per centum for an entity that is demonstrating ownership
in a vessel for which a fishery endorsement is sought or a Mortgage
Trustee. These per centum figures apply to corporate stockholders as
well as to the primary corporation.] (The same statement should be made
with reference to each class of stock, if there is more than one
class.);
4. Information as to stock, where Corporation has less than 30
stockholders: That the information as to stock ownership, upon which
the Corporation relies to establish that 75% of the stock ownership is
vested in Citizens of the United States, is as follows:
Name of Number of shares Percentage of shares
Stockholder owned (each class) owned (each class)
----------------------------------------------------------------------------------------------------------------
Name Number and Class Number and Class
----------------------------------------------------------------------------------------------------------------
and that each of said individual stockholders is a Citizen of the
United States by virtue of birth in the United States, birth abroad of
U.S. citizen parents, by naturalization during minority through the
naturalization of a parent, by marriage (if a woman) to a U.S. citizen
prior to September 22, 1922, or as otherwise authorized by law. Note:
If a corporate stockholder, give information with respect to State of
incorporation, the names of the officers, directors, and stockholders
and the appropriate percentage of shares held, with statement that they
are all U.S. citizens. Nominee holders of record of 5% or more of any
class of stock and the beneficial owners thereof should be named and
their U.S. citizenship information submitted to MARAD.
4. Information as to stock, where Corporation's shares are publicly
traded on a U.S. stock exchange:
That the Corporation has diligently employed, administered, and
adhered to methods such as those identified at 46 CFR 356.5(g) to
monitor the Corporation's stock ownership; and that, based on the
foregoing, the percentage of shares of the Corporation owned by
Citizens of the United States is 75% or greater.
5. That 75% of the interest in (each) said Corporation, as
established by the information hereinbefore set forth, is owned by
Citizens of the United States; that the title to 75% of the stock of
(each) class of the stock of (each) said Corporation is vested in
Citizens of the United States free from any trust or fiduciary
obligation in favor of any person not a Citizen of the United States;
that such proportion of the voting power of (each) said Corporation is
vested in Citizens of the United States; that through no contract or
understanding is it so arranged that more than 25% of the voting power
of (each) said Corporation may be exercised, directly or indirectly, in
behalf of any person who is not a Citizen of the United States; and
that by no means whatsoever, is any interest in said Corporation in
excess of 25% conferred upon or permitted to be exercised by any person
who is not a Citizen of the United States; and
[Note: For state or federally chartered financial institutions
acting as Preferred Mortgagees, the Controlling Interest language,
which is set forth below, is applicable.]
5. That the Controlling Interest in (each) said Corporation, as
established by the information hereinbefore set forth, is owned by
Citizens of the United States; that the title to a majority of the
stock of (each) said Corporation is vested in Citizens of the United
States free from any trust or fiduciary obligation in favor of any
person not a Citizen of the United States; that such proportion of the
voting power of (each) said Corporation 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 of (each) said
Corporation may be exercised, directly or indirectly, in behalf of any
person who is not a Citizen of the United States; and that by no means
whatsoever, is control of (each) said Corporation conferred upon or
permitted to be exercised by any person who is not a Citizen of the
United States; and
6. That the affiant has submitted all the necessary documentation
required under 46 CFR 356.13 in connection with this Affidavit of U.S.
Citizenship for the following vessel(s):
Vessel Name: Official Number:
1.
2.
[Note: Paragraph 6 should be included in the Affidavit of U.S.
Citizenship submitted by an entity that owns a Fishing Industry
Vessel.]
7. That affiant has carefully examined this Affidavit and asserts
that all the statements and representations contained therein are true
to the best of their knowledge, information, and belief.
[[Page 28524]]
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(Name and title of affiant)
-----------------------------------------------------------------------
(Signature of affiant)
-----------------------------------------------------------------------
Date
Penalty for False Statement: A fine or imprisonment, or both, are
provided for violation of the proscriptions contained in 18 U.S.C. 1001
(see also, 18 U.S.C. 286, 287 and 46 U.S.C. 12151).
0
4. In Sec. 356.5 revise paragraph (g) to read as follows:
Sec. 356.5(g) It is incumbent upon the parties filing affidavits
under this part to notify the Citizenship Approval Officer in writing
within 30 calendar days of any changes in information last furnished
with respect to the officers, directors, and stockholders, including 5
percent or more stockholders of the issued and outstanding stock of
each class, together with information concerning their citizenship
status. If other than a corporation, comparable information must be
filed by other entities owning the Fishing Industry Vessel, including
any entity whose ownership interest is being relied upon to establish
75% ownership by Citizens of the United States; (2) if the information
contained in an owner's most recent affidavit of citizenship filing has
not changed, as an alternative to submitting an annual affidavit of
citizenship under this part, a party may file a certification with the
Maritime Administration. The certification should be substantially in
the following format:
``I,___, [Title] of [Name of Corporation] (``Corporation''), being
duly authorized by the Corporation, certify to you that there have been
no changes to the ownership information contained in the affidavit of
citizenship filed with the Maritime Administration on [Date].''
This certification is subject to penalty for false statement. A
fine or imprisonment, or both, are provided for violation of the
proscriptions contained in 18 U.S.C. 1001 (see also, 18 U.S.C. 286, 287
and 46 U.S.C. 12151).
Sec. 356.7 [Amended]
0
5. In Sec. 356.7
(a) Revise paragraph (c) to read as follows:
Sec. 356.7(c):
(c) The ``fair inference method'' is used by corporations whose
stock is publicly traded or is held by more than 30 stockholders.
(1) Use of the fair inference method for a publicly traded
corporation requires that:
(i) At least 95 percent of the stock (each class) of the
corporation be held directly or beneficially by Persons having a U.S.
address in order to infer at least 75 percent ownership by U.S.
Citizens; and
(ii) For determining the requisite percentage of stockholders with
U.S. addresses, the corporation may rely on the methods outlined in
Sec. 356.7(e);
(2) Use of the fair inference method for a non-publicly traded
corporation with more than 30 stockholders requires that:
(i) At least 95 percent of the stock (each class) of the
corporation be held by Persons having a registered U.S. address in
order to infer at least 75 percent ownership by U.S. Citizens; and
(ii) Disclosure be made in the Affidavit of U.S. Citizenship of the
names and citizenship of any stockholders who hold five percent or more
of the corporation's stock (including all classes of stock, voting and
non-voting), officers, and directors.
(b) Add a paragraph (e) to read as follows:
Sec. 356.7(e) If the corporation is publicly traded, the
corporation may employ any number or combination of methods to measure,
monitor, determine, and affirm the required percentage of U.S. citizen
share ownership for the primary corporation, including the following:
(i) Use of the Depository Trust Company segregated account (or
``SEG-100'') system;
(ii) Monitoring Securities and Exchange Commission filings for 5%
holders (Schedules 13D, 13G, Form 13F) and requesting citizenship
information from those filers;
(iii) Use of protective provisions in organizational documents in
order to guard against and rectify the possibility of excess non-
citizen share ownership;
(iv) Communications with Non-Objecting Beneficial Owners (or
``NOBOs'');
(v) Geographic surveys of shareholder addresses provided by proxy
service providers;
(vi) Analysis of registered stockholders and use of dual stock
certificates; and
(vii) Alternative methods upon written approval of the Citizenship
Approval Officer.
Sec. 356.19 [Amended]
0
7. In Sec. 356.19:
0
(a) In paragraph (a)(5), remove ``12102(a)'' and, in its place, add
``12103''.
0
(b) In paragraph (b)(1), remove ``46 U.S.C. 12102(c) and section 2(c)
of the 1916 Act'' and, in its place, add ``46 U.S.C. 12113 and 46
U.S.C. 50501(d)''.
0
(c) In paragraph (b)(6), remove ``12102(c)'' and, in its place, add
``12113''.
Sec. 356.25 [Amended]
0
8. In Sec. 356.25:
0
(a) In paragraph (e), remove ``section 2(c) of the 1916 Act, 46 App.
U.S.C. 802(c) and 46 U.S.C. 12102(c)'' and, in its place, add ``46
U.S.C. 12113 and 46 U.S.C. 50501(d)''.
Sec. 356.51 [Amended]
0
9. In Sec. 356.51(a), remove ``12102(c)'' and, in its place, add
``12113''.
Sec. 356.53 [Amended]
0
10. In Sec. 356.53, remove ``Room 7228, 400 7th Street, SW'' and in
its place, add ``Mail Stop #4, 1200 New Jersey Avenue SE''.
(Authority: 46 U.S.C. 12113(e), 12151, 31322, 49 CFR 1.93)
By order of the Maritime Administration.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2025-12087 Filed 6-27-25; 4:15 pm]
BILLING CODE 4910-81-P
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</html>Indexed from Federal Register on July 1, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.