46 U.S.C. § 12114: Recreational endorsement

A recreational endorsement may be issued for a vessel that satisfies the requirements of section 12103 of this title . A vessel operating under a recreational endorsement may be operated only for pleasure. A vessel for which a recreational endorsement is issued may proceed between a port of the United States and a port of a foreign country without entering or clearing with the Secretary of Homeland Security. However, a recreational vessel is subject to the requirements for reporting arrivals under section 433 of the Tariff Act of 1930 ( 19 U.S.C. 1433 ), and individuals on the vessel are subject to applicable customs regulations. funds available for Coast Guard operating expenses may not be used for expenses incurred for recreational vessel documentation; fees collected from owners of yachts and credited to such use are insufficient to pay expenses of recreational vessel documentation; and there is a backlog of applications for recreational vessel documentation.”