[Federal Register Volume 62, Number 35 (Friday, February 21, 1997)]
[Proposed Rules]
[Pages 7971-7977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4360]


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DEPARTMENT OF TRANSPORTATION
33 CFR Part 181

[CGD 92-065]
RIN 2115-AE37


Hull Identification Numbers for Recreational Boats

AGENCY: Coast Guard, DOT.

ACTION: Supplemental notice of proposed rulemaking.

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SUMMARY: The Coast Guard is proposing to amend its regulations 
concerning the identification numbers affixed to the hulls of 
recreational boats, including boats carrying six or fewer passengers 
for hire. These amendments are necessary to align the present numbering 
system with the newly-adopted international system. This would 
facilitate the sale of U.S. products abroad. In addition, the Coast 
Guard is proposing several minor amendments to its regulations on hull 
identification numbers.


[[Page 7972]]


DATES: Comments must be received on or before May 22, 1997.

ADDRESSES: Comments may be mailed to the Executive Secretary, Marine 
Safety Council (G-LRA/3406) (CGD 92-065), U.S. Coast Guard Headquarters 
2100 Second Street SW., Washington, DC 20593-0001, or may be delivered 
to room 3406 at the same address between 9:30 a.m. and 2 p.m., Monday 
through Friday, except Federal holidays. The telephone number is (202) 
267-1477. Comments on collection-of-information requirements must be 
mailed also to the Office of Information and Regulatory Affairs, Office 
of Management and Budget, 725 17th Street NW., Washington, DC 20503, 
ATTN: Desk Officer, U.S. Coast Guard.
    The Executive Secretary maintains the public docket for this 
rulemaking. Comments will become part of this docket and will be 
available for inspection or copying at room 3406, U.S. Coast Guard 
Headquarters, between 9:30 a.m. and 2 p.m., Monday through Friday, 
except Federal holidays.
    A copy of the material listed in ``Incorporation by Reference'' of 
this preamble is available for inspection at room 3104, U.S. Coast 
Guard Headquarters.

FOR FURTHER INFORMATION CONTACT: Mr. Alston Colihan, Office of Boating 
Safety, (202) 267-0981.

SUPPLEMENTARY INFORMATION:

Request for Comments

    The Coast Guard encourages interested persons to participate in 
this rulemaking by submitting written data, views, or arguments. 
Persons submitting comments should include their names and addresses, 
identify this rulemaking (CGD 92-065) and the specific section of this 
proposal to which each comment applies, and give the reason for each 
comment. Please submit two copies of all comments and attachments in an 
unbound format, no larger than 8\1/2\ by 11 inches, suitable for 
copying and electronic filing. Persons wanting acknowledgment of 
receipt of comments should enclose stamped, self-addressed postcards or 
envelopes.
    The Coast Guard will consider all comments received during the 
comment period. It may change this proposal in view of the comments.
    The Coast Guard plans no public hearing. Persons may request a 
public hearing by writing to the Marine Safety Council at the address 
under ADDRESSES. The request should include the reasons why a hearing 
would be beneficial. If it determines that the opportunity for oral 
presentations will aid this rulemaking, the Coast Guard will hold a 
public hearing at a time and place announced by a later notice in the 
Federal Register.

Regulatory History

    On May 6, 1994, the Coast Guard published a notice of proposed 
rulemaking (NPRM) entitled ``Expanded Hull Identification Number and 
New Requirements for Certificates of Origin'' in the Federal Register 
(59 FR 23651). The Coast Guard received 114 letters commenting on the 
proposal. No public hearing was requested, and none was held.
    On November 9, 1994, a notice announcing a workshop and reopening 
the comment period for the NPRM was published in the Federal Register 
(59 FR 55823).

Background and Purpose

    Under 46 U.S.C. 12501, the Secretary of Transportation is required 
to establish and maintain a vessel identification system (VIS) for use 
by law enforcement and other public officials. This authority has been 
delegated to the Commandant of the Coast Guard (49 CFR 1.46(ss)). The 
VIS is intended to provide a nationwide pool of information on vessels 
and vessel owners that will help in identifying and recovering stolen 
vessels and deterring vessel theft. To aid in the development of a VIS 
for recreational boats, the Coast Guard proposed to expand the hull 
identification number required for those boats under 33 CFR part 181 to 
include certain vessel-specific information and a check digit to make 
fraudulent alternations more difficult. In addition, the Coast Guard 
proposed that vessel manufacturers and importers provide a Certificate 
of Origin (COO) with each vessel produced in, or imported into, the 
U.S. for the purposes of sale. The COO would ensure that documentation 
certifying the information and establishing a chain of ownership was 
available.
    Due to extensive opposition to the proposed 19-character HIN and 
the COO, the comment period was extended from November 9, 1994, to 
January 9, 1995, and a public workshop was held on December 8, 1994. 
After review of all comments received, the Coast Guard decided to issue 
a new proposal that would align the HIN with the recently-adopted 
standard of the International Organization for Standardization (ISO) 
and delete the COO.

Discussion of Comments and Changes to the NPRM

    The Coast Guard received 114 comments in response to the NPRM from 
33 boat manufacturers, 8 boat dealers, 6 insurance companies, 42 State 
and law-enforcement organizations, and 25 individuals and 
organizations. In addition, the Coast Guard received oral comments at 
the December 8, 1994, workshop. These comments and the changes made to 
the NPRM are summarized as follows.
    (a) Format of hull identification number (proposed Sec. 181.25). 
The present regulation in 33 CFR 181.25 requires that a 12-character 
HIN be affixed in two places on the hull of each new recreational boat 
made in the U.S. or imported into the U.S. The HIN consists of the 
manufacturer identification code (three characters), the boat's serial 
number (five characters), the month and year of certification or 
manufacture (two characters), and the model year (two characters). The 
NPRM proposed an expansion of the present HIN to include a two-
character prefix to indicate the country of origin and five characters 
following the HIN to indicate overall length, hull material, means of 
propulsion, type of boat, and a check digit to help detect fraudulent 
alterations of the HIN. As a result of the overwhelmingly negative 
comments received to the NPRM, this supplemental notice of proposed 
rulemaking (SNPRM) proposes to add only the two-character prefix for 
country of origin and delete the last five proposed characters. The 
HIN, as proposed in this notice, is aligned with the format recently 
adopted by the International Organization for Standardization (ISO).
    The HIN format, as proposed in the NPRM, was based on the Vehicle 
Identification Number (VIN), which has worked well in the automotive 
industry. Unfortunately, while there are probably fewer than 100 
companies manufacturing automobiles worldwide, there are more than 
4,500 boat manufacturers in the U.S. alone. Recreational boat 
manufacturers tend to be small and less likely to have computers. 
Consequently, spending 15 minutes to manually calculate the check digit 
alone for a single boat is, for them, an excessive paperwork burden.
    Though the present regulations have changed only slightly since 
they became effective in 1972, the Coast Guard estimates that hundreds 
of boats still are manufactured annually with incorrect 12-character 
HIN's. Were the Coast Guard to expand the HIN to 19 characters, 
including a check digit, the potential for error would significantly 
increase, making it more difficult to determine whether an error was 
intentional or not.

[[Page 7973]]

    The comments also noted a number of practical problems. For 
example, several comments noted that some boats do not have room to 
accommodate a longer number in the required location and would have to 
be redesigned. One noted that an error found in an HIN on the transom 
of an aluminum boat might require replacement of the entire transom. 
Still others mentioned problems for law enforcement officers in 
reviewing documents that repeat the HIN because of the difficulty in 
reading long numbers, particularly numbers not separated by hyphens or 
spaces.
    Though a number of alternative formats were suggested in the 
comments, most calling for a 17-character format, the Coast Guard 
decided that it would propose using the shorter 14-character format 
consistent with ISO. By using the ISO format, it enables U.S. 
manufacturers to market their products abroad without having to affix 
two different sets of numbers on each boat.
    One other reason why the Coast Guard proposes removal of the 
requirement for the five additional HIN characters is because the 
Office of Management and Budget (OMB), which administers the Paperwork 
Reduction Act (see the ``Collection of Information'' section in this 
preamble), received many negative comments alleging that the additional 
characters would impose significant paperwork burdens. OMB indicated 
that it would be taking a very close look at the proposed paperwork 
requirements in this rulemaking and that more justification for the 
additional characters, if retained, would be necessary.
    As the proposed 14-character HIN is consistent with the 
internationally-adopted ISO HIN, entities or organizations, such as 
State, insurance, theft investigation, or law enforcement agencies, 
that favor an HIN with additional characters to aid in marine 
investigations and deter boat theft should work with the ISO to change 
the international standard. In this way, a single, internationally-
recognized format can be maintained. In the interim, existing 
Sec. 181.27 allows manufacturers to place additional characters before 
or after the HIN.
    (b) Certificate of Origin (Removed). The requirement for a 
certificate of origin (COO), as proposed in the NPRM, has been removed. 
The COO was to be a document identifying the boat and certifying 
transfer of ownership from its manufacturer to the retail purchaser and 
so on to subsequent purchasers. It was expected to provide assistance 
in proving ownership of the boat. Many of the States currently have 
laws requiring manufacturers to furnish COO's. Considering the costs 
and information collection burdens associated with the proposed COO 
requirements and the fact that States are not subject to the Paperwork 
Reduction Act, the States are in a better position to develop their own 
uniform Certificate of Origin requirements. The major obstacles to the 
proposed requirement for a COO are the information-collection burdens, 
the costs of forms meeting security features recommended by the 
National Association of State Boating Law Administrators (NASBLA), and 
the absence of Coast Guard authority to charge manufacturers for 
expenditures on these forms.
    (c) Applicability (existing Sec. 181.21). Several comments 
suggested that the Coast Guard require hull identification numbers for 
all vessels, including commercial vessels. These suggestions are beyond 
the scope of this rulemaking, which is limited to recreational boats, 
including boats carrying six or fewer passengers.
    Section 181.21 is also proposed to be amended to remove obsolete 
and unnecessary provisions without substantive change.
    (d) Definition of model year (proposed Sec. 181.3(f)). In existing 
Sec. 181.3(f), ``model year'' is defined as the period beginning August 
1 of any year and ending on July 31 of the following year, with the 
model year being designated as the year in which the period ends. 
Several comments stated that this definition is vague and subject to 
varying interpretation. For example, it is not keyed to a specific 
date, such as the date of construction, assembly, or importation. Other 
comments complained that the model year should not be confined to 
specified dates (i.e., August 1 and July 31) in case they wanted to 
vary the introduction date of a new model.
    The proposed definition has been completely revised to address 
these concerns.
    (e) Assignment of hull identification number (proposed 
Sec. 181.24). This new section is provided for clarity and contains no 
substantive changes from the existing regulations.
    (f) Display of hull identification number (proposed 
Sec. 181.29(b)). One comment stated that the primary HIN location 
should be revised to make the HIN readable when a boat is in the water. 
The Coast Guard agrees and proposes amending the paragraph to indicate 
that the HIN must be affixed where it is readily visible above the 
waterline.
    Two identical hull identification numbers are required to be 
displayed on each boat hull, a primary HIN on the transom of most boats 
and a duplicate HIN somewhere on the interior of the boat. The 
intention is for the primary HIN to be readily visible. Marine police 
officers routinely attempt to read the HIN on boats during State law 
enforcement boardings, and many HIN's are not visible because they are 
affixed to the transom beneath swim platforms or below the waterline. 
Existing Sec. 181.29 would be amended to show that the primary HIN must 
be affixed where it is readily visible above the waterline. If, when 
affixed in accordance with proposed Sec. 181.29(b)(1), the primary HIN 
is not readily visible, the manufacturer must affix the HIN in 
accordance with proposed Sec. 181.29(b)(2).
    (g) Display of duplicate hull identification number (proposed 
Sec. 181.29(d)). A comment from a law enforcement officer wanted a 
standard international requirement for placement of the duplicate HIN 
to ensure that it is accessible without having to disassemble portions 
of the boat.
    While accessibility without requiring disassembly of portions of a 
boat is desirable, creating this accessibility would defeat the purpose 
of having a duplicate HIN, that is to help identify boats on which the 
primary HIN has been removed or altered. Considering the infinite 
variety of boat designs and configurations, defining such a uniform 
location would be prohibitively difficult.
    (h) Permanency of hull identification number (proposed 
Sec. 181.29(e)). Several comments stated that all vessels should be 
required to have HIN's affixed in a uniform manner. Another comment 
stated that the methods used to affix HIN's should be made more 
durable. According to the comments, manufacturers should be required to 
stamp or emboss HIN's into the hull instead of allowing glued or pop-
riveted HIN plates.
    The Coast Guard acknowledges the desirability of uniform permanency 
requirements for HIN's. However, because boats are constructed from so 
many different materials, such as canvas, vinyl, wood, aluminum and 
fiberglass, the variety of materials, prevents the establishment of 
uniform permanency requirements. As currently written in Sec. 181.29, 
each HIN must be carved, burned, stamped, embossed, molded, bonded, or 
otherwise permanently affixed to the boat so that alteration, removal, 
or replacement would be obvious. If the number is on a separate plate, 
the plate must be fastened in such a manner that its removal would 
normally cause some

[[Page 7974]]

scarring of or damage to the surrounding hull area.
    The words ``otherwise permanently affixed'' and ``so that 
alteration, removal, or replacement would be obvious'' are subject to 
interpretation. The Coast Guard considers these words to mean that 
ordinary and reasonable methods must be used to ensure that the HIN 
will remain intact and legible for the useful life of the boat, and in 
such a way that would discourage anyone from altering or removing the 
HIN number.
    (i) Assignment of manufacturer identification code (proposed 
Sec. 181.31). One comment stated that the Coast Guard should accept a 
manufacturer identification code (MIC) issued by an international 
agency or an organization designated by the European Union (EU). 
According to the comment, a U.S. importer would then have to submit 
proof that the MIC displayed on a boat was assigned by the 
international agency or EU-designated organization.
    One reason for requiring manufacturers and importers to obtain an 
MIC from the Coast Guard is because the Coast Guard has no legal 
recourse against foreign manufacturers of boats that contain 
substantial-risk defects or fail to comply with applicable Federal 
safety standards. The practical effect of requiring U.S. manufacturers 
and importers of boats built in foreign countries to obtain an MIC from 
the Coast Guard is to identify the U.S. agent or U.S. subsidiary 
responsible for notifying owners and correcting defects or non-
compliances in accordance with 33 CFR part 179.
    The Coast Guard does not believe it would be appropriate to accept 
manufacturer identification codes issued by other international 
agencies or EU-designated organizations, until such time as 
international agreements are in effect which establish the 
responsibilities and accountability of foreign manufacturers for 
defective or non-complying boats sold in the United States.
    Several comments stated that the Coast Guard should not issue an 
MIC over the telephone and that applicants for an MIC should be 
required to submit a completed application with a notarized signature, 
a copy of a business license or a seller's permit, and photographs of 
the established place of business. The comments also stated that the 
regulations should require the Coast Guard or an official designated by 
the State to inspect the place of business before an MIC is issued.
    The Coast Guard has ceased issuing MIC's over the telephone and 
concurs with the need for some means to ensure that a company which 
applies for an MIC is, in fact, in the business of manufacturing boats. 
Some companies that have applied for and received MIC's were not in the 
business of manufacturing boats, but were engaged in boat theft or 
insurance fraud. While the Coast Guard does not concur with the 
comments proposing requirements for photographs of established places 
of business or notarized signatures, the Coast Guard agrees that a copy 
of an applicant's State business license or a State seller's permit 
will help the Coast Guard and the States keep track of company owners 
and the physical locations of boat manufacturing plants and discourage 
the use of MIC's for fraudulent purposes. Submission of an applicant's 
State business license or a seller's permit would also preclude the 
necessity for a visit to the manufacturer's place of business.
    Both State boat registration and titling authorities and the Coast 
Guard need a means to ensure that a company applying for an MIC is, in 
fact, in the business of manufacturing boats. Therefore, Sec. 181.31(a) 
would be amended to require a manufacturer apply for an MIC to include 
a copy of its State business license or seller's permit to help the 
Coast Guard keep track of the identities of company officials and the 
physical locations of its plants and to discourage the use of an MIC 
for fraudulent purposes.
    One weakness in the existing regulations covering the issuance of 
these codes is that, as currently written, they do not provide for 
Coast Guard to refuse to issue or revoke an MIC. This has led to 
companies which applied for and received MIC's, which were not in the 
business of manufacturing boats, but were engaged in boat theft, 
insurance fraud or avoided responsibilities for defect notification and 
recall by filing for bankruptcy and then resuming boat manufacturing 
under a different MIC. Therefore, proposed Sec. 181.31(d) is added to 
allow for refusal of an application for an MIC or revocation of an MIC.
    (j) Assignment of hull identification numbers for persons who build 
or import boats for their own use (proposed Sec. 181.31(c); relocated 
to proposed Sec. 181.24(b)). Paragraph (c) of Sec. 181.31 as appearing 
in the NPRM concerned the assignment of numbers for persons who build 
or import boats for their own use and not for the purposes of sale. The 
location of this paragraph was confusing because it was placed in a 
section describing how manufacturers are to obtain manufacturer 
identification codes. It now has been relocated, without substantive 
change, to proposed Sec. 181.24(b), a new section concerning assignment 
of HIN's.
    (k) Conditions for use of manufacturer identification code 
(existing Sec. 181.33). One comment stated that manufacturer name or 
address changes should be in writing.
    Section 181.33(b) currently contains this requirement.
    (l) Removal of HIN (proposed Sec. 181.35). Several comments 
recommended that, once the HIN is stamped or embossed, there should be 
no alteration without the written permission of the Commandant of the 
Coast Guard. Two other comments supported making the alteration of an 
HIN a felony nationwide and stated that there should be no alteration 
without the written permission of the Commandant of the Coast Guard and 
the issuing authority of the State involved.
    While existing Sec. 181.35 prohibits the removal or alteration of 
an HIN unless authorized by the Commandant, the Coast Guard agrees that 
the Commandant's permission should be in writing to add to the 
integrity of the system and proposes to amend the section accordingly. 
The Coast Guard routinely advises State issuing authorities about the 
alterations to the HIN's it authorizes and does not believe that 
requiring a separate State authorization would substantially enhance 
the integrity of the system.
    (m) Miscellaneous comments. Several comments suggested the term 
``length,'' in reference to the characters indicating length of the 
boat, be defined. With the withdrawal of the proposal to require five 
additional characters, one of which would indicate a vessel's length, 
this comment is no longer relevant to the proposed amendments.
    Another comment requested changes in boat documentation procedures. 
This comment concerns 46 CFR part 67 and is not relevant to the 
proposed regulations.
    One comment suggested that an international law be established 
requiring that boats be inspected by law enforcement agencies or by 
State registration authorities each time a title is changed or 
transferred. This comment is beyond the scope of this rulemaking.
    A comment from an insurer of personal watercraft (PWC) stated that 
all replacement hulls for PWC should have a serialized number 
permanently affixed to the main lower portion of the hull and that all 
PWC manufacturers should be required to provide certifications of 
replacements. The certification, according to the comment, should 
include the original HIN of the HIN of the PWC, the name and signature 
of the

[[Page 7975]]

present owner of the PWC, the name of the facility replacing the PWC 
hull, and a statement about the destruction and disposal of damaged PWC 
hulls. The Coast Guard has urged both PWC manufacturers and 
manufacturers of replacement hulls to verify the destruction and 
disposal of damaged PWC hulls and to affix the same HIN originally 
assigned to a PWC. These procedures would ensure that PWC with 
replacement hulls can be traced through manufacturer warranty and State 
boat registration and numbering systems and would make it virtually 
impossible for a damaged PWC hull to be recycled as a usable boat. The 
Coast Guard recognizes that PWC represent the largest number of boats 
stolen annually. However, certification regarding replacement, 
destruction, and disposal of PWC hulls is an issue which is beyond the 
scope of the present rulemaking. The Coast Guard is considering the 
problems relating to replacement hulls under a separate initiative.

Regulatory Evaluation

    This proposal is not a significant regulatory action under section 
3(f) of Executive Order 12866 and does not require an assessment of 
potential costs and benefits under section 6(a)(3) of that order. It 
has not been reviewed by the Office of Management and Budget under that 
order. It is not significant under the regulatory policies and 
procedures of the Department of Transportation (DOT) (44 FR 11040; 
February 26, 1979). The Coast Guard expects the economic impact of this 
proposal to be so minimal that a full Regulatory Evaluation under 
paragraph 10e of the regulatory policies and procedures of DOT is 
unnecessary. An estimated 2,000,000 recreational boats are manufactured 
or imported annually, each presently required to have the 12-character 
HIN located in two places on the hull. In addition, about 17,000 boats 
are built each year by private individuals. This means a total of 
4,034,000 HIN's (two per boat) are affixed annually. The estimated 
average cost for determining and affixing the present 12-character HIN 
is $.50 per boat. The estimated increase in costs for adding two more 
characters, as proposed, would be an additional $.10 or less per boat.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the 
Coast Guard must consider whether this proposal, if adopted, will have 
a significant economic impact on a substantial number of small 
entities. ``Small entities'' may include (1) small businesses and not-
for-profit organizations that are independently owned and operated and 
that are not dominant in their fields and (2) governmental 
jurisdictions with populations of less than 50,000.
    The proposed regulations would apply to both small and large 
manufacturers and importers of boats, as well as to private individuals 
who build or import their boats. Numerous comments were received, 
primarily from small manufacturers, objecting to the burdens that would 
be imposed by the use of the proposed 19-character HIN. In response to 
these comments, the Coast Guard has decided to delete the last five 
characters from its proposed 19-character HIN and propose only the 
original 12-character HIN with a two-character prefix for country of 
origin. This would result in a decrease of five characters while 
aligning the HIN with international standards. The addition of the two-
character prefix would result in only a slight increase in costs ($.10 
or less) per boat. Therefore, the Coast Guard certifies under 5 U.S.C. 
605(b) that this new proposal, if adopted, will not have a significant 
economic impact on a substantial number of small entities. If, however, 
you think that your business or organization qualifies as a small 
entity and that this proposal will have a significant economic impact 
on your business or organization, please submit a comment (see 
ADDRESSES) explaining why you think it qualifies and in what way and to 
what degree this proposal will economically affect it.

Collection of Information

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the 
Office of Management and Budget (OMB) reviews each proposed rule that 
contains a collection-of-information requirement to determine whether 
the practical value of the information is worth the burden imposed by 
its collection. Collection-of-information requirements include 
reporting, recordkeeping, notification, labeling, and other, similar 
requirements.
    This proposal contains collection-of-information requirements in 
Sec. Sec. 181.25, 181.29, and 181.31. The following particulars apply:
    DOT: 2115.
    OMB Control No.: 2115-0573.
    Administration: U.S. Coast Guard.
    Title: Hull Identification Number for Recreational Boats.
    Need for Information: Two characters identifying the country of 
origin would be required to be added to the presently-required, 12-
character HIN. This is necessary to align the HIN format with the 
newly-established standard of the International Organization for 
Standardization (ISO) in order to maintain a uniform system and improve 
access by U.S. manufacturers to international markets.
    Proposed Use of Information: To be used by State agencies, local 
law enforcement agencies, the Coast Guard, and other Federal agencies 
to identify each recreational boat manufactured domestically or 
imported.
    Estimated Annual Burden: It takes about 10 minutes per boat to 
determine the characters and affix the presently-required, 12-character 
HIN. The time required under this proposal to determine the code for 
the country of origin and add its assigned two letters to the HIN would 
be negligible.
    Respondents: Boat manufacturers and importers (4,500), individuals 
building their own boats (17,000) and issuing authorities in States and 
territories of the United States (56).
    Forms: The two characters would be added to the two identical HIN's 
affixed to each recreational boat.
    Average Burden Hours per Respondent: Negligible. The two characters 
that would be added refer to the country of origin, readily available 
information.
    The Coast Guard has submitted the requirements to OMB for review 
under section 3504(h) of the Paperwork Reduction Act. Persons 
submitting comments on the requirements should submit their comments to 
both OMB and to the Coast Guard where indicated under ADDRESSES.

Federalism

    The Coast Guard has analyzed this proposal under the principles and 
criteria contained in Executive Order 12612 and has determined that 
this proposal does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment.
    The authority for this rulemaking under 46 U.S.C. 12501 and 12502. 
Section 12506 authorizes the Coast Guard to delegate to a State its 
authority to establish and maintain a vessel identification system. 
Under 33 CFR part 187, States may elect to participate in the VIS 
program and, in doing so, must use the hull identification numbers 
assigned under the provisions being addressed in this rulemaking.

Environment

    The Coast Guard considered the environmental impact of this 
proposal and concluded that, under paragraph 2.b.2.e(34) of Commandant 
Instruction M16475.1B, this proposal is categorically excluded from 
further environmental documentation. This

[[Page 7976]]

proposal concerns labeling of boats for identification and has no 
environmental consequences. A ``Categorical Exclusion Determination'' 
is available in the docket for inspection or copying where indicated 
under ADDRESSES.

List of Subjects in 33 CFR Part 181

    Incorporation by reference, Labeling, Marine safety, Reporting and 
recordkeeping requirements.

    For the reasons set out in the preamble, the Coast Guard proposes 
to amend 33 CFR part 181 as follows:

PART 181--MANUFACTURER REQUIREMENTS

    1. The authority citation for part 181 is revised to read as 
follows:

    Authority: 46 U.S.C. 4302, 12501, 12502; 49 CFR 1.46.

    2. In Sec. 181.3, the definitions of Date of manufacture and Model 
year are revised to read as follows:


Sec. 181.3  Definitions.

* * * * *
    Date of manufacture means a date that is no earlier than the date 
construction or assembly of a boat begins and no later than the date 
the boat leaves the place of manufacture or assembly or is imported 
into the United States for the purposes of sale.
* * * * *
    Model year means the calendar year (January 1 through December 31) 
of, or the calendar year following
    (1) The boat's date of manufacture; or
    (2) If the boat is required to be certified, its date of 
certification.
* * * * *
    3. In Sec. 181.4, paragraph (a) and paragraph (b) introductory text 
are revised and, in paragraph (b), a new item is added, in alphabetical 
order, to the list to read as follows:


Sec. 181.4  Incorporation by reference.

    (a) Certain material is incorporated by reference into this part 
with the approval of the Director of the Federal Register under 5 
U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that 
specified in paragraph (b) of this section, the Coast Guard must 
publish notice of change in the Federal Register; and the material must 
be available to the public. All approved material is available for 
inspection at the Office of the Federal Register, 800 North Capitol 
Street NW., suite 700, Washington, DC, and at the U.S. Coast Guard, 
Office of Boating Safety (G-OPB), 2100 Second Street SW., Washington, 
DC 20593-0001, and is available from the sources indicated in paragraph 
(b) of this section.
    (b) The material approved for incorporation by reference in this 
part and the sections affected are as follows:
    International Organization for Standardization (ISO): Maintenance 
Agency Secretariat, c/o DIN Deutsches Institut fur Normung, 
Burggrafenstrasse 6, Postfach 1107, D-1000 Berlin 30, Republic of 
Germany:
    ISO 3166-88, Codes for the Representation of Names of Counties--
181.25.
* * * * *
    4. Section 181.21 is revised to read as follows:


Sec. 181.21  Purpose and applicability.

    This subpart prescribes requirements for identifying boats.
    5. Section 181.24 is added to read as follows:


Sec. 181.24  Assignment of hull identification number.

    (a) For a boat under Sec. 181.23(a), the manufacturer or importer 
shall assign the required hull identification number according to 
Sec. 181.25.
    (b) For a boat under Sec. 181.23(b), the builder or importer shall 
obtain the required hull identification number from the issuing 
authority of the State where the boat will be used principally or, if 
the State does not assign hull identification numbers, from the U.S. 
Coast Guard Recreational Boating Product Assurance Division, 2100 
Second Street SW., Washington, DC 20593-0001.
    6. Section 181.25 is revised to read as follows:


Sec. 181.25  Format of hull identification number.

    (a) Each hull identification number required by Sec. 181.23 must 
consist of the following 14 characters:
    (1) The first two characters must be the alphabetic Code from 
column 2 of ISO 3166-88 indicating the country where the boat was 
manufactured.
    (2) Characters three through five must be a manufacturer 
identification code assigned under Sec. 181.31.
    (3) Characters 6 through 10 must be a serial number assigned by the 
manufacturer or an issuing authority in English letters (except I, O, 
and Q), Arabic numerals, or both.
    (4) Characters 11 and 12 must indicate the month and year of the 
date of manufacture, date of importation into the United States, or, if 
the boat is required to be certified, the date of certification. 
Character 11 must indicate the month by using the letter ``A'' for 
January, ``B'' for February, and so on until ``L'' for December. 
Character 12 must be an Arabic numeral indicting the last digit of the 
year.
    (5) Characters 13 and 14 must indicate the model year using Arabic 
numerals for the last two numbers of the model year, such as ``96'' for 
1996 and ``97'' for 1997.
    (b) The characters must not be interrupted by slashes, hyphens, or 
spaces, except for a hyphen of at least 10 millimeters (.375 in.) in 
length following the first two characters.
    7. Section 181.29 is revised to read as follows:


Sec. 181.29  Display of hull identification number.

    (a) Two identical hull identification numbers must be displayed on 
the hull of each boat.
    (b) Except as noted in paragraph (c) of this section, the primary 
hull identification number must be located as follows:
    (1) On boats with transoms, to the starboard outboard side of the 
transom above the waterline and within two inches of the top of the 
transom, gunwale, or hull/deck joint, whichever is lowest.
    (2) On boats without transoms or on boats on which it would be 
impractical to locate the number on the transom, to the starboard 
outboard side of the hull above the waterline, aft, within one foot of 
the stern and within two inches of the top of the transom, gunwale, or 
hull/deck joint, whichever is lowest.
    (3) On catamarans and pontoon boats that have readily replaceable 
hulls, to the aft crossbeam, within one foot of the starboard hull 
attachment.
    (4) On other boats with readily replaceable hulls, a boat 
manufacturer can use alternative locations with the written permission 
of the U.S. Coast Guard Recreational Boating Product Assurance Division 
at the address in Sec. 181.24(b).
    (c) If the hull identification number would not be readily visible 
if located as required under paragraph (b)(1) of this section (because 
of rails, fittings, swim platforms, or other accessories or transoms 
with reverse sheer), the number must be affixed in accordance with 
paragraph (b)(2) of this section.
    (d) The duplicate hull identification number must be affixed in an 
unexposed location on the interior of the boat or beneath a fitting or 
item of hardware.
    (e) Each hull identification number must be carved, burned, 
stamped, embossed, molded, bonded, or otherwise permanently affixed to 
the boat so that alteration, removal, or replacement would be obvious. 
If the number is on a separate plate attached by a mechanical means, 
such as by rivets or bolts, the plate must be

[[Page 7977]]

attached by some additional means (such as with an epoxy glue) in such 
a manner that removal of the plate would normally cause some scarring 
of or damage to the surrounding hull area. A hull identification number 
must not be attached to parts of the boat that are removable.
    (f) The characters of each hull identification number must be no 
less than one-fourth of an inch in height.
    8. Section Sec. 181.31 is revised to read as follows:


Sec. 181.31  Assignment of manufacturer identification code.

    (a) To obtain the manufacturer identification code required by 
Sec. 181.25(a)(2), each manufacturer, other than an importer, required 
under Sec. 181.23(a) to identify a boat shall submit a written request 
to the U.S. Coast Guard Recreational Boating Product Assurance Branch, 
2100 Second Street SW., Washington, DC 20593-0001. The request must 
indicate the manufacturer's name and U.S. address along with the 
general types and lengths of boats that will be manufactured. The 
request must also include a copy of the manufacturer's State business 
license or seller's permit.
    (b) To obtain the manufacturer identification code required by 
Sec. 181.25(a)(2), each importer required under Sec. 181.23(a) to 
identify a boat shall submit a written request for a manufacturer 
identification code as required by paragraph (a) of this section. The 
request must indicate the importer's name and U.S. address along with a 
list of the manufacturers and their addresses, and the general types 
and lengths, of boats that will be imported. The request must also 
include a copy of the importer's State business license or seller's 
permit.
    (c) The Coast Guard has assigned manufacturer identification codes 
to issuing authorities in the States for the assignment of hull 
identification numbers to persons who are required to identify boats 
under Sec. 181.23(b).
    (d) The Coast Guard may refuse to issue a manufacturer 
identification code and may revoke a previously issued code.
    9. Section 181.35 is revised to read as follows:


Sec. 181.35  Removal of hull identification number.

    No person may remove or alter a hull identification number without 
the written permission of the Commandant of the Coast Guard.

    Dated: February 14, 1997.
N.T. Saunders,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Operations.
[FR Doc. 97-4360 Filed 2-20-97; 8:45 am]
BILLING CODE 4910-14-M