(a) The company must—

1. (1) Have owned or operated at least one U.S. documented or registered vessel for a minimum of 3 consecutive years before the SIP application date; and
2. (2) Have paid all civil penalties and user fees.

(b) Except as allowed by paragraph (c) of this section, each vessel must—

1. (1) Have been in operation with an eligible owner or operator for at least 3 consecutive years before the SIP application date;
2. (2) Have had no revocation of its COI during the 3 years before the SIP application date; and

3. (3) Have no documented deficiency for any of the following in the 3 years before the SIP application date:

   1. (i) Any vessel operation inconsistent with the operating details specified on its COI.
   2. (ii) Operating without the required amount of lifesaving appliances on board the vessel or with inoperable survival craft.
   3. (iii) Operating without the required firefighting equipment on board the vessel or with an inoperable fire pump(s).
   4. (iv) Unauthorized modifications to the vessel's approved systems or structure, such as fixed firefighting systems, pollution prevention arrangements, overcurrent protection devices, or watertight boundary arrangements.
   5. (v) Operating without the required navigation equipment on board the vessel or with inoperable navigation equipment.