Coastwise Trade; Cruise Itinerary; CROWN DYNASTY

HQ 112748 June 9, 1993 VES-3-06-CO:R:IT:C 112748 DEC CATEGORY: Carriers Mr. Alan Freedman Commodore Cruise Line 800 Douglas Road - Suite 700 Coral Gables, Florida 33134 RE: Coastwise Trade; Cruise Itinerary; CROWN DYNASTY Dear Mr. Freedman: This ruling is in response to your inquiry of May 25, 1993, in which you seek clarification of whether the anticipated itinerary of your non-coastwise qualified vessel (CROWN DYNASTY) constitutes a violation of Customs regulations. FACTS: You state that the CROWN DYNASTY will embark passengers in both New York and Port Everglades with no debarkation and will return, after several stops at foreign ports, to Port Everglades for full debarkation. The proposed itinerary which is the subject of this ruling is set out below. Sat Oct. 16 '93 New York 0800-1700 Sun 17 Sea Mon 18 Sea Tues 19 Pt. Everglades 0800-1800 Wed 20 Sea Thurs 21 Sea Fri 22 St. Thomas 0800-1600 Fri 22 San Juan 2100-0000 Sat 23 San Juan 0001-1800 Sun 24 St. Maarten 0800-1700 Mon 25 Sea Tue 26 Aruba 0900-1700 Wed 27 Sea Thu 28 Pt. Antonio 0800-1600 Fri 29 Sea Sat 30 Pt. Everglades 0800-1700 -2- ISSUE: Whether a non-coastwise qualified vessel may complete the itinerary described above without violating 19 U.S.C. app. 289 and 19 C.F.R. 4.80a. LAW AND ANALYSIS: Generally, the coastwise laws prohibit the transportation of merchandise or passengers between points in the United States embraced within the coastwise laws in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. The coastwise law applicable to the carriage of passengers is found in Title 46, United States Code, Appendix, section 289 (46 U.S.C. app. 289) and provides that: No foreign vessel shall transport passengers between ports or places in the United States either directly or by way of a foreign port, under a penalty of $200 for each passenger so transported and landed. 46 U.S.C. app. 289 (1992). Title 19, Code of Federal Regulations, Section 4.80a(b) provides that: The applicability of the coastwise law (46 U.S.C. 289) to a vessel not qualified to engage in the coastwise trade (i.e., either a foreign-flag vessel or a U.S.-flag vessel that is foreign-built or at one time has been under foreign-flag) which embarks a passenger at a coastwise port is as follows: . . . (3) If the passenger is on a voyage to one or more coastwise ports and a distant foreign port or ports (whether or not the voyage includes a nearby foreign port or ports) and the passenger disembarks at a coastwise port, there is no violation of the coastwise law provided the passenger has proceeded with the vessel to a distant foreign port. 19 C.F.R. 4.80a(b)(1992). A coastwise port is a "port in the U.S., its territories, or possessions embraced within the coastwise laws." 19 C.F.R. 4.80a(a)(1)(1992). A nearby foreign port is defined as "any port in North America, Central America, the Bermuda Islands, or the West -3- Indies (including the Bahama Islands, but not including the Leeward Islands of the Netherlands Antilles, i.e. Aruba, Bonaire, and Curacao)." 19 C.F.R. 4.80a(a)(2)(1992). A distant port is "any foreign port that is not a nearby port." 19 C.F.R. 4.80a(a)(3) (1992). The legality of your proposed itinerary must be analyzed through an application of the preceding rules and definitions. First, you indicated that the CROWN DYNASTY will begin its voyage in New York, a coastwise port, and pick up passengers at Port Everglades, also a coastwise port, prior to sailing to various foreign ports. After a two-week cruise, passengers will disembark at Port Everglades. On the surface, it appears that there is a coastwise violation because passengers are being transported from one coastwise point to another. However, no violation of the passenger coastwise law will occur because the regulations explicitly provide that no passenger coastwise violation occurs if the passengers accompany the vessel to a distant foreign port. Since the CROWN DYNASTY's itinerary includes a stop at a distant foreign port (i.e. Aruba - Aruba is specifically excluded from the group of nearby foreign ports (19 C.F.R. 4.80a(a)(2)(1992)) making it a distant foreign port), the proposed itinerary presents no conflict with the passenger coastwise law. HOLDING: The proposed itinerary of the CROWN DYNASTY as outlined above is not in violation of the passenger coastwise law. Although the CROWN DYNASTY's proposed itinerary includes the transport of passengers between coastwise points, a stop at a distant foreign port (Aruba) makes this contemplated voyage compliant with Customs regulation 19 C.F.R. 4.80a(b)(3)(1992). Sincerely, Acting Chief Carrier Rulings Branch