Summary of Recent Changes to U.S. Maritime Citizenship Affidavits
Owners of vessels and participants in programs filing annual affidavits of U.S. citizenship with the Maritime Administration (MARAD) now have less paperwork to handle. Two new rules published in the Federal Register on June 4, 2026, modify how businesses prove they meet federal maritime citizenship requirements. One rule focuses on MARAD’s promotional programs, while the other addresses the American Fisheries Act (AFA) program. Both rules take effect immediately and aim to reduce regulatory burdens.
The amendments related to Part 355 set the rules for the affidavit needed when participating in initiatives like the Capital Construction Fund and the Maritime Security Program. The changes in Part 356 focus on the stricter citizenship requirements for owners of U.S.-flagged fishing vessels larger than 100 feet. Essentially, these rules impact nearly all entities that need MARAD's citizenship eligibility determination.
A key change in both rules is the removal of personally identifiable information (PII) deemed unnecessary for verifying citizenship. The revised affidavit no longer asks for the birth dates or places of corporate officers and directors under 46 C.F.R. § 355.2. Similarly, the AFA-specific affidavit removes Social Security numbers and birth dates for executives under 46 C.F.R. § 356.5(d). MARAD found that keeping this data did not significantly help in verifying citizenship and posed unnecessary risks. Although MARAD can still request PII if there's a question about citizenship status, the blanket requirement to gather this information has been removed. Additionally, the notarization requirement for the standard affidavit has been lifted, reducing both the costs and delays associated with compliance.
Another important update is the introduction of a streamlined recertification option. If an entity’s ownership and executive information hasn’t changed since the last filing, it can submit a brief written certification instead of a full affidavit every year. This option for MARAD promotional program participants is found at 46 C.F.R. § 355.4(b), with a similar provision for AFA vessel owners at 46 C.F.R. § 356.5(g). MARAD will provide the certification form with each fishery endorsement eligibility letter. If there are changes in ownership or management, entities still need to notify MARAD within 30 days and submit an updated affidavit.
Publicly traded companies, which must meet higher U.S.-citizen ownership requirements under the AFA, have faced challenges documenting their shareholder makeup. The new rules now provide an acceptable list of ways to confirm the necessary level of U.S.-citizen ownership at 46 C.F.R. § 356.7(e). These methods include participation in the Depository Trust Company’s SEG-100 system to separate shares, monitoring SEC filings, conducting geographic surveys, communicating with Non-Objecting Beneficial Owners (NOBOs), using protective charter provisions, and other MARAD-approved methods. The choice of method may depend on the company size and existing compliance practices.
Lastly, MARAD has coordinated these updates with guidance from the U.S. Coast Guard, creating more consistent expectations between the agencies. A new "fair inference rule" in Section 356.7(c) allows publicly traded companies to assume at least 75 percent U.S.-citizen ownership if 95 percent of each stock class is held by people with U.S. addresses. This alignment is crucial as it minimizes the chances of conflicting requirements from MARAD and the Coast Guard, simplifying compliance for fishing companies.
Practical Implications
For companies with stable ownership, the new recertification process streamlines the annual filing by removing the need for a full affidavit when no key information has changed. Publicly traded companies will benefit from clear compliance options regarding shareholder monitoring. The alignment with Coast Guard guidelines helps reduce inconsistencies between different regulatory expectations. Additionally, the elimination of routine data collection of sensitive PII simplifies the filing process and enhances data security.
Entities with annual filings approaching should consider three immediate actions:
1. Assess whether any changes in ownership, officers, or directors have occurred since the last affidavit. If there are no changes, the entity might opt for the streamlined certification instead of a complete new affidavit.
2. Review the revised affidavit requirements under 46 C.F.R. §§ 355.2 and 356.5(d), updating internal data collection processes to eliminate unnecessary PII fields.
3. Publicly traded companies under the AFA should identify the most suitable method listed in 46 C.F.R. § 356.7(e) for monitoring their shareholders. After choosing a method, ensure it is well-documented and consistently applied in future filings.
In Conclusion
Overall, the amendments by MARAD in June 2026 lighten the annual filing burdens while maintaining the necessity to prove U.S. citizenship eligibility. Filers should take advantage of the streamlined recertification process when applicable, update internal workflows by removing unnecessary PII fields, and for publicly traded AFA entities, document a reliable shareholder monitoring method under 46 C.F.R. § 356.7(e).