46 U.S.C. App. 883; Merchandise; Coastwise Trade

HQ 113151 June 29, 1994 VES-3-CO:R:IT:C 113151 GOB CATEGORY: Carriers Mr. Joe Iannicelli Aero-Instant Spray Drying Services 57 Darien Highway Brunswick, GA 31520 RE: 46 U.S.C. App. 883; Merchandise; Coastwise Trade Dear Mr. Iannicelli: This is in response to your letter dated June 28, 1994 with respect to the shipment of a spray dryer. FACTS: The record reflects that you propose the following transportation of a spray dryer. The dryer would be shipped from South San Francisco, California to Antwerp, Belgium by a foreign- flag vessel. In Antwerp, it would be unloaded and then loaded onto a different vessel for shipment to Savannah, Georgia. ISSUE: Whether the proposed transportation constitutes a violation of 46 U.S.C. App. 883. LAW AND ANALYSIS: 46 U.S.C. App. 883, the coastwise merchandise statute often referred to as the "Jones Act", provides in part: No merchandise...shall be transported by water, or by land and water, on penalty of forfeiture of the merchandise (or a monetary amount up to the value thereof as determined by the Secretary of the Treasury, or the actual cost of the transportation, whichever is greater, to be recovered from any consignor, seller, owner, importer, consignee, agent, or other person or persons so transporting or causing said merchandise to be transported), between points in the United States...either directly or via a foreign port, or for any part of the transportation, in any other vessel 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... - 2 - The proposed transportation is violative of 46 U.S.C. App. 883 because some or all of the transportation will be accomplished by a vessel which is not coastwise-qualified, i.e., built in, documented under the laws of, and owned by citizens of the United States. The fact that the transportation will include a stop in Belgium does not remove the transportation from the scope of 46 U.S.C. App. 883. HOLDING: The proposed transportation would constitute a violation of 46 U.S.C. App. 883. Sincerely, Arthur P. Schifflin Chief Carrier Rulings Branch cc: Paul Ackerman, Chief, Division of Domestic Trade, U.S. Dept. of Transportation, Maritime Administration, 400 Seventh St.