Legal Requirements
Understanding Bareboat Charter Law Under USCG Jurisdiction
The Azimut 72S operates under the jurisdiction of the U.S. Coast Guard Seventh District Headquarters (Miami), which enforces maritime regulations across 1.7 million square miles covering Florida, Georgia, South Carolina, and Puerto Rico waters.
What Makes a Valid Bareboat Charter?
Under 46 CFR § 24.10-1, a valid demise charter (bareboat charter) requires all nine of the following elements:
Written Charter Agreement
A formal written bareboat charter agreement between Jativa Holdings (owner) and charterer is required under 46 CFR § 24.10-1(a)(1)
Complete Transfer of Possession & Control
The charterer must have absolute possession, use, and control of the Azimut 72S and be considered the de facto owner during the charter period
Charterer Selects Crew
The charterer must have the sole authority to select and hire the master and crew (owner may require minimum qualifications per 46 CFR § 24.10-1(a)(3))
Charterer Pays Crew Directly
Master and crew are compensated directly by the charterer, not by Jativa Holdings (the owner)
Charterer Provides All Stores
All fuel, food, beverages, provisions, and stores are provided by the charterer
Charterer Obtains Insurance
The charterer is responsible for obtaining appropriate insurance coverage for the charter period
Charterer Responsible for Navigation
The charterer assumes full responsibility for safe navigation, operation, and compliance with maritime regulations
Charterer May Discharge Crew
The charterer may discharge, for cause, the master or any crew member without referral to the owner
Pre/Post Charter Survey
The Azimut 72S is surveyed upon delivery to and return from the charterer
Critical Legal Restrictions
Under 46 CFR § 24.10-1 and USCG enforcement policy:
The Owner (Jativa Holdings) Must NOT:
Act as master, crew member, or provide any personnel
Be present onboard the Azimut 72S during the charter period
Provide, recommend, or dictate crew selection to the charterer
Retain any possession, use, or control of the vessel during the charter period
Any provision showing retention of possession or control by the owner would invalidate the bareboat charter and subject the vessel to USCG commercial passenger vessel requirements.
Passenger Limitations:
Maximum 12 passengers (including charterer) at any time per 46 CFR § 24.10-1(c)
Cannot exceed 12 passengers even while moored or at anchor
A USCG Certificate of Inspection (COI) is required for carrying more than 12 passengers
Why the Azimut 72S Is Not USCG-Licensed for Commercial Operation
Bareboat charters are specifically excluded from commercial passenger vessel requirements under 46 CFR § 24.10-1 when all nine bareboat charter requirements are met.
Under USCG regulations, vessels can operate in three distinct ways:
Recreational Vessel
Private use, no compensation
Bareboat Charter
Chartered without crew under written agreement, limited to 12 passengers per 46 CFR § 24.10-1
Azimut 72S ClassificationCommercial Passenger Vessel
Requires USCG-licensed master, vessel COI, and commercial designation
Commercial passenger vessel operation requires:
USCG-licensed master (OUPV, Master 100 Ton, or higher)
Commercial vessel designation and USCG Certificate of Inspection (COI)
Carrying passengers for hire with crew provided by the owner
Regular USCG safety inspections and compliance audits
Bareboat charters do NOT require these because the charterer operates the Azimut 72S as the temporary owner and operator, not as a passenger being carried for hire.
Penalties for Non-Compliance
Jativa Holdings takes compliance seriously because the USCG imposes severe penalties for illegal passenger-for-hire operations:
Civil penalties up to $67,814 per violation per day for illegal passenger-for-hire operations (46 U.S.C. § 2110)
Criminal charges for willful violations (fines up to $5,000 and/or imprisonment up to one year per 46 U.S.C. § 2302)
Immediate voyage termination and vessel detention by the USCG
Insurance policy voidance for unlicensed commercial operations
Maritime liens, legal liability, and potential vessel seizure
Questions About Legal Compliance?
We're happy to walk you through the legal framework governing bareboat charters. Transparency and compliance are at the core of our operation.