The MARAD waiver is designed to support small business development in the marine tourism and passenger vessel industries. To qualify, you must meet a specific set of criteria. The vessel must:
- Be at least three years old from the date it was built
- Be owned by a U.S. citizen or entity
- Be intended for use carrying no more than 12 passengers
- Be engaged in coastwise trade, typically meaning passenger-for-hire operations within U.S. waters
- Not be built in the United States, or if it was, have had substantial modifications abroad
Additionally, the use of the vessel must not adversely affect U.S. shipbuilding interests. MARAD publishes each waiver request for public comment to ensure transparency in how the waiver may impact the domestic shipbuilding industry.
What Is a MARAD Waiver?
Officially known as a Small Vessel Waiver, is a special authorization granted by the United States Maritime Administration (MARAD) that permits certain U.S.-flagged vessels that are not built in the United States to operate in coastwise trade under very specific circumstances. Typically, to qualify for a coastwise endorsement—a necessary requirement for commercial passenger service between U.S. ports—a vessel must be built in the U.S. However, a MARAD Waiver provides an exception to this rule for qualifying vessels.
The Vessel Documentation E-Portal provides access to the necessary forms to start this process. Once the waiver is granted, applicants can also use the portal to file for initial vessel documentation with the appropriate endorsement, allowing them to enter the U.S. passenger-for-hire market.
Can I Apply for a MARAD Waiver Through the Vessel Documentation E-Portal?
Yes. While the waiver itself is issued by the U.S. Maritime Administration, the Vessel Documentation E-Portal provides access to the proper Small Vessel Waiver form, simplifying the initial application process. You can fill out and submit your waiver request digitally, upload supporting documentation, and ensure all required fields are completed.
After the waiver is granted, you can immediately move to the next step—applying for initial vessel documentation with a coastwise endorsement—also through our portal. The E-Portal helps streamline both the waiver application and subsequent documentation so vessel owners can get started on legal operations with fewer delays and paperwork errors.
Why Would I Need a MARAD Waiver?
If you own or are purchasing a foreign-built vessel and wish to operate it commercially in the U.S. (such as running a sightseeing, ferry, or charter operation), you would typically be prohibited from doing so without a coastwise endorsement. Since non-U.S.-built vessels are ineligible for this endorsement by default, the MARAD Waiver provides an alternative path for small operators.
Without this waiver, a foreign-built vessel can only be used for recreational purposes or for limited commercial uses that do not involve transporting people or goods between U.S. ports. Remember, you can change your endorsement through our e-portal, too.
Is a MARAD Waiver the Same as Coastwise Documentation?
No. The MARAD Waiver is only a prerequisite. It grants permission for a non-U.S.-built vessel to apply for coastwise endorsement under specific conditions. Once you have the waiver, you must still apply for initial vessel documentation with the U.S. Coast Guard, requesting a coastwise endorsement for passenger service.
The Vessel Documentation E-Portal can assist with both steps:
- Filing the waiver application
- Applying for initial documentation with the correct endorsement once the waiver is approved
What Information Do I Need to Apply for a MARAD Waiver?
To apply, you’ll need:
- The vessel’s name, HIN (Hull Identification Number), and official number (if already documented)
- Year and country of build
- Length, tonnage, and type of propulsion
- A statement of intended use, specifically noting the number of passengers you plan to carry
- Proof of ownership and U.S. citizenship
- Supporting documentation, if applicable
All this information can be entered and uploaded securely through the Vessel Documentation E-Portal. The portal will help ensure your submission is complete and routed to the appropriate agency without unnecessary delays.
Can I Start the Documentation Process While Waiting for the Waiver?
You may begin preparing your documentation materials in advance, but your vessel cannot be issued a coastwise endorsement until the MARAD waiver is officially granted. However, the Vessel Documentation E-Portal allows you to start gathering forms, uploading documents, and saving your application in progress so that once the waiver is received, you can submit everything promptly.
What If My Vessel Is Already Documented for Recreation?
If your vessel is already documented for recreational purposes and you wish to convert it to a commercial use with a coastwise endorsement, you must:
- Obtain a MARAD Waiver (if the vessel was foreign-built)
- File for Exchange of Endorsement with the U.S. Coast Guard
Both forms are available through the Vessel Documentation E-Portal, and the platform can guide you through the proper order of filing and submission.
Does the Waiver Apply to Cargo or Fishing Operations?
No. The MARAD Waiver program only covers vessels carrying 12 or fewer passengers for hire. It does not authorize cargo, commercial fishing, or towing operations. For those services, you must meet all standard requirements for coastwise trade, including U.S. build certification, and apply for the appropriate endorsements separately.
The Vessel Documentation E-Portal supports filings for various endorsement types, but for non-passenger commercial activities, the MARAD Waiver does not apply.
What Happens After I Receive My Waiver?
Once approved, your waiver will be issued in writing by MARAD. With this in hand, you are now eligible to apply for a Certificate of Documentation with a coastwise endorsement (passenger-only) through the U.S. Coast Guard.
This is the next step—and it’s one the Vessel Documentation E-Portal can help you with directly. The portal provides:
- Access to the Initial Vessel Documentation form
- Secure submission of proof of ownership, tonnage, build, and citizenship
- Guidance on how to request the coastwise endorsement
- Status tracking of your documentation application
Does the Waiver Transfer With the Vessel if I Sell It?
No. A MARAD Waiver is vessel-specific and owner-specific. If the vessel is sold, the new owner must apply for their own MARAD Waiver, even if the vessel has previously operated under one.
That’s why it’s important for prospective buyers of foreign-built vessels to plan ahead. The Vessel Documentation E-Portal supports new owners by helping them:
- File for a new MARAD Waiver
- Apply for initial or updated vessel documentation
- Choose the appropriate endorsement type
This waiver can open doors for small business operators who wish to legally use foreign-built vessels in U.S. waters for passenger-for-hire activities. While the waiver itself is issued by the Maritime Administration, the Vessel Documentation E-Portal simplifies the application process and helps owners navigate the path from waiver to full documentation.
From the moment you decide to apply, to the point when you’re ready to request a coastwise endorsement and begin operations, the E-Portal streamlines every step—making vessel renewal, documentation, and compliance far easier than ever before.