---
kind: "section"
citation: "46 C.F.R. § 68.17"
title: "46"
number: "68.17"
heading: "Restrictions."
url: "https://uscodex.org/cfr/46/68.17"
---

# §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)](#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](/cfr/46/68.3.md). 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.

## Notes

### Amendments

[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]

### Source

Source: CGD 80-107, 47 FR 27511, June 24, 1982. Redesignated and amended by USCG-2005-20258, 71 FR 61418, 61419, Oct. 18, 2006, unless otherwise noted.

### Authority

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.

### Source

Source: CGD 80-107, 47 FR 27511, June 24, 1982, unless otherwise noted.

### Amendments

[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]