Coastwise Trade; Passengers; 46 U.S.C. App. 289

HQ 112013 December 17, 1991 VES-3-06/07-CO:R:IT:C 112013 GEV CATEGORY: Carriers Brendan Corrigan Director of Operations Carnival Cruise Lines Carnival Place 3655 NW 87 Avenue Miami, Florida 33178-2428 RE: Coastwise Trade; Passengers; 46 U.S.C. App. 289 Dear Mr. Corrigan: This is in response to your letter dated November 27, 1991, regarding a proposed cruise by one of your organization's vessels. Our ruling on this matter is set forth below. FACTS: The MS FANTASY is a vessel owned and operated by Carnival Cruise Lines. The subject vessel was built in Helsinki, Finland, and is registered in Liberia. The vessel is being chartered by Automatic Data Processing, Inc. (ADP) for the purpose of transporting a group of 1800 passengers. The proposed cruise itinerary is as follows: DAY DATE PORT ARRIVE DEPART Monday 8-17-92 Miami 4:00 P.M. Tuesday 8-18-92 Freeport 7:00 A.M. 4:00 P.M. Wednesday 8-19-92 Nassau 7:00 A.M. Thursday 8-20-92 Nassau 8:00 A.M. Thursday 8-20-92 Miami 4:00 P.M. (Passengers in transit) Friday 8-21-92 Miami 8:00 A.M. (Passengers disembark with luggage) - 2 - This charter's special requirement is when the vessel arrives in Miami, the passengers will proceed ashore in order to attend a function at a local hotel. However, they will return to the vessel to stay aboard overnight and disembark with their luggage on Friday morning. ISSUE: Whether the transportation of passengers aboard a foreign- built, foreign-flag vessel on a cruise from Miami to Freeport and Nassau in the Bahama Islands, then back to Miami constitutes a violation of 46 U.S.C. App. 289. LAW AND ANALYSIS: Title 46, United States Code Appendix, section 289 (46 U.S.C. App. 289, the passenger coastwise law), prohibits the transportation of passengers between points embraced within the coastwise laws of the United States, either directly or by way of a foreign port, in a non-coastwise-qualified vessel (i.e., any vessel not built in and documented under the laws of the United States and owned by persons who are citizens of the United States). For purposes of section 289, "passenger" is defined as "...any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business." (19 CFR 4.50(b)) Section 4.80a(b)(2), Customs Regulations (19 CFR 4.80a(b)(2); copy enclosed), promulgated pursuant to 46 U.S.C. App. 289, provides that a coastwise violation occurs if a passenger is on a voyage to one or more coastwise points and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks at a coastwise port other than the port of embarkation. (see 19 CFR 4.80a(a)(1)(2) and (4) for the definitions of the terms "coastwise port," "nearby foreign port," "embark," and "disembark," as those terms are used in the regulation) In regard to the proposed cruise itinerary, the passengers will embark and disembark at the same coastwise port (Miami) with intervening stops in Freeport and Nassau in the Bahama Islands. Accordingly, there would be no violation of 46 U.S.C. App. 289. It should be noted that although the proposed cruise involves no violation of the passenger coastwise law, the vessel would still be required to report its arrival and make formal entry of the vessel upon its return to Miami pursuant to 19 U.S.C. 1433(a)(1)(B) and 19 U.S.C. 1435, respectively. We suggest you contact Miami Customs regarding the specifics of these procedures and those regarding the processing of passengers who proceed ashore and return to the vessel once it has returned to Miami. - 3 - HOLDING: The transportation of passengers aboard a foreign-built, foreign-flag vessel from Miami to Freeport and Nassau in the Bahama Islands, then back to Miami does not constitute a violation of 46 U.S.C. App. 289. Sincerely, B. James Fritz Chief Carrier Rulings Branch Enclosure