A fishing business is defined as the conduct of commercial fishing via definitions
detailed in the Magnuson-Stevens Fishery Conservation and Management
Reauthorization Act of 2006, 16 U.S.C. §§ 1801-1884 (2011) ("Sustainable Fisheries
Act"). Commercial fishing is fishing in which the fish harvested is entered into
commerce through sale, barter or trade. Fishing income is defined as income from
catching, taking or harvesting of fish (this includes all forms of aquatic life).
The National Oceanic and Atmospheric Administration’s National Marine Fisheries
Service (NMFS), a division of the Department of Commerce, is the federal agency
responsible for the management, conservation and protection of living marine resources
within the U. S. Exclusive Economic Zone (water three to 200 miles offshore). Its six
Regional Offices and eight Regional Fishery Management Councils have oversight of
fishing activities and compliance with fisheries regulations. NMFS publishes information
in its annual statistical report, Fisheries of the United States. For 2009, the report states
that commercial landings by U.S. fishers at ports in the 50 states were 7.9 billion pounds
valued at $3.9 billion. Over 1/3 of both the catch and the value was caught in Alaska. The
next three states based on dollar value were Massachusetts, Maine and Louisiana,
respectively. The type of vessel and gear, size of crew, and fishery regulation will vary
based on location and species.
Types of Fishing Operations
Generally, there are two types of fishing operations - shore-based and offshore. Shorebased
operations use a net from shore to catch fish, dig, or pick aquatic life. Offshore
operations use fishing vessels and either nets, lines, pots, traps, or diving gear to catch
finfish, shellfish or other aquatic life. There are two basic types of nets used - encircling
nets and entangling nets. The encircling nets are purse seine, haul seine, or trawl seine.
The fishing vessel circles around the target fishing area, dropping the net in a circular
pattern. Once the net is in place, the net is closed, trapping the catch in the net.
Entangling nets, also known as gill or trammel nets, catch the fish when the fish try to
swim through the nets.
The many types of fishing vessels used in the variety of fisheries use different gear and
equipment. Some vessels participate in more than one kind of fishery. Some vessels
solely catch fish, some vessels catch and process fish, some vessels solely process fish,
and some vessels transport fish from the vessel catching the fish to a processing vessel or
a shore-based processor.
Most state websites will provide information regarding reporting requirements, licensing
and permit information, and the state’s commercial fishing laws.
What follows is a limited description of fishing around the country to aid in
understanding that not all fishery operations are alike.
New England
New England’s fishing business consists primarily of owner-operated vessels. The
largest are approximately 100 feet long, and most are less than 50 feet long. In spite of
the various regulatory agencies, many of the fishing areas are undersupplied, resulting in
declining income for the fisherman. The New England Area is primarily known for
harvesting the following species - lobster, scallops and ground fish. Income is also
derived from seaweed and sponges.
Licenses are required in New England for harvesting various sea "products" - lobster,
crab, shellfish, quahog, mussels, marine worms, commercial fish, commercial shrimp,
and seaweed. The Maine Department of Marine Resources issues lobster licenses, which
determine the number of individuals permitted to harvest lobster under the license. A
Class 1 license allows only the license holder to harvest lobster. A Class 2 license allows
the license holder and one crewmember to harvest. A Class 3 license permits the license
holder and two crewmembers to harvest.
A single operator license covers the licensed activity for the license holder only. The
crew license covers the licensed activity for the license holder as well as all
crewmembers. The number of crewmembers allowed to fish under one fishing crew
license is unlimited. As long as the fishing license is on the boat, the license holder is not
required to be present.
The City of Portland, Maine owns a Fish Exchange, which provides seller representation
through daily auctions and handles over 90% of Maine’s total catch of regulated ground
fish. The Exchange weighs, grades, and sells fishery products, and services financial
accounts. Sellers from all over Maine maintain control of their products up to the point of
sale. Daily and weekly price reports are available on the Exchange’s website.
Alaska
Commercial fisheries in Alaska fall within the mixed jurisdiction of state and federal
management authorities. In general, the state has management authority for all salmon,
herring and shellfish fisheries, whereas the federal government has management authority
for the majority of ground fish fisheries, except for those within three nautical miles of
shore and a few others.
Commercially important species of seafood from Alaska include five species of salmon,
five species of crab, walleye, pollock, Pacific halibut, Pacific cod, sablefish, herring, four
species of shrimp, several species of flatfish and rockfish, lingcod, geoducks, sea
cucumbers, and sea urchins.
The Alaska Department of Fish and Game website is an excellent resource for Alaska
fishing information. It provides details on the season, licensing, vessels, gear, catch and
ex-vessel price (the price sold by the fishers). The website has descriptions accompanied
by pictures of vessels and gear.
Gulf Coast
All of the Gulf Coast States harvest shrimp from the Gulf of Mexico, commonly referred
to as the Gulf. Brown shrimp and white shrimp are most common, although pink, river,
rock, roughneck and Royal Red varieties can also be found. Shrimp are sold wholesale by
size grade, expressed as the average number of shrimp per pound. The lower the number
of shrimp per pound, the larger the average shrimp. For example, 16-20 grade shrimp are
larger than 21-25 grade shrimp. Larger shrimp command a higher price than smaller
shrimp. Shrimp are sold "head-on" or "headless." Headless shrimp are more expensive
because more are required to make a pound and "heading" shrimp (removing the heads)
is labor-intensive.
Specialized boats (trawlers) use large nets that are dragged through the water to scoop up
the shrimp. Due to the type of trawl net used, a variety of other species of aquatic life,
called bycatch, is also scooped up. Federal law protects certain species of shark, turtle
and dolphin, and requires the use of turtle excluder devices (usually called TEDS).
Limited bycatch of some species, such as swordfish, may be retained. Depending on what
bycatch occurs, it may be retained for sale to the wholesaler/buyer, eaten by the crew
while on the water, or frozen and taken home by the captain and/or crew for personal
consumption or casual sale.
Catfish are also common to all the Gulf Coast States. In the wild, commercial fishers
generally harvest fresh or saltwater catfish by stringing a "trotline" from which are
suspended large multi-barbed hooks (treble hooks). The fisher baits the hooks with "trash
fish" and "runs the line" morning and evening to pick up the catfish caught by the treble
hooks. Sales to the wholesaler/buyer/ processor are usually of whole, fresh, not frozen,
fish.
Type of Vessel
In your pre-audit analysis, you should review Accurint for business information. As part
of the search, obtain a watercraft report. It will provide the vessel name, number, make,
use, year, type, length, breadth, depth, gross tons, net tons and propulsion type.
Based on information obtained during the initial interview, determine the number of days
offshore and the type of vessel(s), and reconcile that information to fuel consumption.
Determine the vessel types in service. Processed catch will sell for a different price than
catch sold whole.
Licenses/Permit Data
The state fisheries regulators and the NMFS Regional Offices will have information with
respect to licensing and permit requirements. You can obtain this data from most states. If
the permit was issued by the NMFS, you can go to its permit page and search types of
permits by vessel name.
Fishing Season
Each fishery has a specific season for each location and species harvested. It is important
to understand this in relation to your taxpayer. Does the reported fishing activity
correspond with the season? If not, why not? The answer may simply be that the quota
for the fishery had been met. See the Alaska Fish and Game website for Commercial
Fishing Seasons in Alaska for a good example of fishing seasons, species and permitted
method of catch.
lundi 24 septembre 2018
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