This has got to be one of the most widely misunderstood subjects in the marine industry. Inboard and inboard/outboard powered boats must use a filter that passes a flame test. The filter with the plastic bowl does not, so metal bowls or filter elements are a requirement.
Outboard powered boats can use filters with plastic bowls no matter where the filter is located.
Here is the law. This is the preamble to the section of the Code of Federal Regulations that addresses fuel system. Note that the requirement does not repeat does not appliy to outboard powered boats.
TITLE 33--NAVIGATION AND NAVIGABLE WATERS
CHAPTER I--COAST GUARD, DEPARTMENT OF HOMELAND SECURITY (CONTINUED)
PART 183_BOATS AND ASSOCIATED EQUIPMENT--Table of Contents
Subpart J_Fuel Systems
Sec. 183.501 Applicability.
Source: CGD 74-209, 42 FR 5950, Jan. 31, 1977, unless otherwise
noted.
General
(a) This subpart applies to all boats that have gasoline engines,
except outboard engines, for electrical generation, mechanical power, or
propulsion.
(b) [Reserved]
[CGD 74-209, 42 FR 5950, Jan. 31, 1977, as amended by CGD 81-092, 48 FR
55736, Dec. 15, 1983; USCG-1999-5832, 64 FR 34716, June 29, 1999]