46 U.S.C. App. 883; Coastwise transportation

HQ 114823 September 30, 1999 VES-3-RR:IT:EC 114823 GOB CATEGORY: Carriers Fred C. Boyer A-Mari-Trans 21844 76th Avenue South Kent, WA 98032 RE: 46 U.S.C. App. 883; Coastwise transportation Dear Mr. Boyer: This is in response to your letter of September 21, 1999. FACTS: You describe the pertinent facts as follows: The plan would call for transporting three (3) American made Catamarans from Vancouver B.C. into New York. The Catamarans would sail under their own power into Vancouver B.C. Canada, and be loaded onto a foreign flagged carrier which will transport [them] through the Panama Canal, with delivery into New York Harbor, United States. ISSUE: Whether the proposed activity is violative of 46 U.S.C. App. 883? LAW AND ANALYSIS: Generally, the coastwise laws prohibit the transportation of passengers or merchandise 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. A vessel that is built in, documented under the laws of, and owned by citizens of the United States, and which obtains a coastwise endorsement from the U.S. Coast Guard, is referred to as "coastwise-qualified." The coastwise laws generally apply to points in the territorial sea, which is 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. 46 U.S.C. App. 883, the coastwise merchandise statute often called the “Jones Act,” provides in part that no merchandise shall be transported between points in the United States embraced within the coastwise laws, either directly or via a foreign port, or for any part of the transportation, in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. Equipment and supplies of the transporting vessel are not considered “merchandise” for this purpose. The activity which you describe would not be violative of 46 U.S.C. App. 883 because it involves the transportation of merchandise from a non-coastwise point, Vancouver, B.C., Canada, to a coastwise point, i.e., New York. Thus, it does not involve the transportation of merchandise between points in the United States. HOLDING: The proposed activity would not be violative of 46 U.S.C. App. 883 because it does not involve the transportation of merchandise between points in the United States. Sincerely, Jerry Laderberg Chief, Entry Procedures and Carriers Branch