46 U.S.C. App. 883; Merchandise; Private

HQ 111342 December 5, 1990 VES-3-07-CO:R:P:C 111342 RAH CATEGORY: Carriers Walter Krauklis Schenkers International Forwarders Inc. 2700 Greens Road, Building M P.O. Box 60244 AMF Houston, Texas 77205 RE: 46 U.S.C. App. 883; Merchandise; Private Dear Mr. Krauklis: This is in response to your letter of September 3, 1990, requesting an interpretation of 46 U.S.C. App. 883. As you did not specifically request a ruling, this letter will provide general information only. In order for us to issue a ruling under the Customs Regulations (19 C.F.R. 177.2) a request for a ruling must contain a complete statement of all relevant facts relating to the transaction. Such facts should include information relating to place of build, nationality, and registration of the vessel and, if to be used in waters under the jurisdiction of the United States, the exact place or places of intended use, if known. Nevertheless, we will provide you with general information. In your letter you ask us to determine if the Jones Act will allow the private use of 2 barges constructed in the People's Republic of China in the U.S. coastal waters, namely Galveston Bay, Texas, for the purpose of moving truck or rail cars from/to a manufacturing operation. The coastwise laws generally prohibit the transportation of merchandise between points in the United States embraced within the coastwise laws, either directly or via a foreign port, or for any part of such transportation, in any vessel other than a vessel built in and documented under the laws of the United States and owned by persons who are citizens of the United States, or vessels to which the privilege of engaging in the coastwise trade is extended. 46 U.S.C. App. 883 and 19 C.F.R. 4.80. The term "merchandise," as used in 46 U.S.C. 883, is not defined for purposes of that provision. We have used the definition of "merchandise" found in section 401(c), Tariff Act of 1930, as amended (19 U.S.C. 1401(c)) in our application of section 883. "Merchandise" is defined in section 1401(c) as meaning "goods, wares, and chattels of every description, and [including] merchandise the importation of which is prohibited...." More specifically, in Headquarters Decision 105061, dated May 7, 1987, we held that construction equipment and materials constituted merchandise and could not be transported in a foreign-built, foreign-flag barge under section 883. Finally, we have held that it is immaterial that cargo transported may be owned by the vessel owner for purposes of section 883. Headquarters Decision 109649 (08-1-88). Furthermore, even though a company will engage a vessel in private use only under section 883, the transportation of merchandise thereon would nevertheless constitute coastwise trade, the transportation of which is prohibited in any vessel other than one which is coastwise-qualified. If we can be of further assistance, or if you would like a formal ruling as discussed above, please do not hesitate to contact our office. Sincerely, B. James Fritz Chief Carrier Rulings Branch