How to delete a USCG documentation

1. When deletion is required

You delete documentation when:

• Selling to a non-U.S.-citizen or to a non-qualifying entity. Deletion makes the vessel eligible for foreign re-flagging.
• Exporting the vessel. CBP and the destination country typically require a U.S. deletion certificate to issue new papers.
• Scrapping or total lossof the vessel. Closes the record so the boat doesn’t remain on the active register indefinitely.
• Converting to state title. The owner wants the boat state-titled instead of federally documented (rare, but it happens — for tax planning, registration fee differences, or owner preference).

You do not delete documentation when selling to another U.S.-citizen buyer who intends to keep the boat documented. In that case, the buyer files a new CG-1258 application in their name and the documentation is transferred, not deleted.

2. Discharge any recorded mortgage first

NVDC will not delete a vessel that has an unsatisfied preferred ship mortgage on the record. Before filing deletion, the owner (or the broker/closing agent) must:

• Pay off the mortgage at closing.
• Obtain a satisfaction of mortgage from the lender.
• File the satisfaction with NVDC and confirm it’s recorded.
• Then file the deletion.

This is one of the most common ways closings stall. If your seller has a live mortgage and a non-U.S.-citizen buyer, the satisfaction has to be recorded before deletion, deletion has to be issued before re-flagging, and the buyer’s country has to issue new papers before the boat is legally flagged anywhere. Build the schedule with these dependencies in mind.

3. Form CG-1340 (Surrender)

The instrument for deletion is USCG Form CG-1340 (Surrender of Certificate of Documentation). The form asks for the reason for surrender — sold to non-citizen, exported, scrapped, lost, re-flagged, or converted — and includes a section the owner signs under oath confirming the reason.

Submit with:

• The original Certificate of Documentation (or a sworn statement explaining its absence).
• Supporting documents specific to the reason for deletion (see below).
• Any applicable fee.

4. Supporting documents by deletion reason

• Sold to non-citizen: bill of sale showing the non-citizen buyer; in some cases, evidence of buyer identity and citizenship.
• Exported: bill of sale to a foreign buyer or evidence of export; sometimes a CBP outbound clearance.
• Scrapped / total loss: a sworn statement and, where possible, supporting evidence (insurance settlement documentation, photographs, salvage yard receipt).
• Converted to state title: the state titling office will require the NVDC deletion before it issues a title; deletion paperwork should state the conversion reason.

5. Timing relative to a sale closing

For sales to a non-citizen or for export, the standard sequence is:

1. Buyer’s funds reach the broker’s escrow trust account.
2. Bill of sale is signed.
3. Any recorded mortgage is satisfied and the satisfaction filed with NVDC.
4. The seller files CG-1340 to delete the documentation.
5. NVDC issues a certificate of deletion.
6. The buyer presents the deletion certificate to register the vessel under the new flag.

Doing this out of order — for example, delivering the boat to a foreign buyer before deletion — leaves the boat in a flag-ambiguous state and can create customs and insurance problems. Put the sequence into the PSA explicitly.

6. Export certificates for foreign buyers

For an exported vessel, the foreign buyer’s home country will typically require:

• The U.S. deletion certificate.
• The bill of sale.
• A formal export declaration, where applicable, from CBP.
• A current marine survey.
• Evidence of clear title.

Sellers should make these documents part of the closing package; buyers should confirm they have a complete set before wiring funds.

7. After deletion: certificate of deletion

NVDC issues a Certificate of Deletiononce the surrender is processed. Keep this document — it’s the proof that the vessel is no longer on the U.S. register and the foundation for any subsequent foreign registration or state title.

8. Re-documenting later

A deleted vessel can sometimes be re-documented if it’s sold back to a qualifying U.S. owner and the chain of title can be reconstructed. Coastwise endorsements are harder to recover than recreational — once a vessel has been foreign-flagged, the coastwise eligibility may be permanently lost. Get specialist advice before assuming a previously deleted vessel can be re-documented for charter use.

Common mistakes

• Deleting before mortgages are satisfied. NVDC will not process this. Get the satisfaction filed first.
• Delivering the boat to a foreign buyer before deletion.The buyer can’t register at home, and the boat sits in legal limbo.
• Losing the original COD without a sworn statement.Reconstructing this slows deletion. Keep the original.
• Assuming deletion is reversible.Re-documentation isn’t guaranteed, especially for coastwise.
• Not coordinating with the buyer’s side.Foreign re-flagging timelines vary by country. Confirm the buyer’s home authority is ready to receive the deletion certificate before you file it.