Coastwise Trade; Foreign Flag Vessel; Sailing School; 46U.S.C. App. 289

HQ 114279 March 19, 1998 VES-3-19-RR:IT:EC 114279 GG CATEGORY: Carriers David S. Smith Smith Aquatic Safety Services 1010 Stroud Court Charlevoix, MI 49720 RE: Coastwise Trade; Foreign Flag Vessel; Sailing School; 46 U.S.C. App. 289 Dear Commander Smith: This is in response to your letter, dated March 2, 1998, regarding the proposed use of the Canadian vessel FAIR JEANNE for sail training and educational purposes. Our ruling on this matter is set forth below. FACTS: NorStar, a sail training organization of which you are executive director, and the North Central Michigan Community College, plan to offer a sail training program for high school and college students. In addition to sailing instruction, students may also take courses in marine science and history. You have decided to charter a Canadian sail training vessel, the FAIR JEANNE, for this purpose. Your itinerary would include calls at various U.S. ports on Lakes Huron and Michigan. ISSUE: Whether the use of the FAIR JEANNE for a sailing school violates the U.S. coastwise laws. 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 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. 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). The coastwise laws generally apply to points in the territorial sea, defined as the belt, three nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline, in cases where the baseline and the coastline differ. In our interpretation of 46 U.S.C. 46 App. 289, Customs has long-held that a person transported on a vessel as a student in bona fide instructional courses in oceanography, sailing and navigation/seamanship, and marine history and science, when the presence of that person is required on board the vessel as a part of his or her course or training, is not a passenger for purposes of the coastwise laws (Customs ruling letters 108166, dated February 27, 1986, and 114263, dated March 3, 1998). This is so regardless of whether a fee is charged for the aforementioned instruction. Accordingly, the use of the FAIR JEANNE for the purposes you describe would not violate the U.S. coastwise laws. HOLDING: The use of the FAIR JEANNE for a sailing school does not violate 46 U.S.C. App. 289. Sincerely, Jerry Laderberg Chief Entry Procedures and Carriers Branch