Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b)

HQ H014387 July 24, 2007 VES-3-02-OT:RR:BSTC:CCI H014387 LLB CATEGORY: Carriers Mr. Thomas Buhl Maersk Line Limited One Commercial Place, 20th Floor Norfolk, VA 23510 – 2103 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Mr. Buhl: This letter is in response to your correspondence dated July 17, 2007, in which you inquire about the coastwise transportation of the individuals mentioned therein aboard the MAERSK OHIO and MAERSK MONTANA. Our decision follows. FACTS The voyages in question involve the transportation of the subject individuals aboard the non-coastwise-qualified MAERSK OHIO and MAERSK MONTANA (the “vessels”). The voyage aboard the MAERSK OHIO involves the transportation of four individuals who will embark in Newark, New Jersey on or about July 25, 2007 for the purpose of receiving training on vessel procedures and operational guidelines. The individuals will disembark in Charleston, South Carolina on or about July 29, 2007. The voyage aboard the MAERSK MONTANA involves the transportation of four individuals who will also embark in Newark, New Jersey on or about July 25, 2007. One individual will be assisting with the actual operation of the vessel. The remaining individuals will be installing computer hardware and software. Two of the individuals will disembark in Norfolk, Virginia on or about July 27, 2007, and the remaining individuals will disembark in Charleston, South Carolina on or about July 29, 2007. ISSUE Whether the individuals described in the FACTS section above are “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b) 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. Such a vessel, after it has obtained a coastwise endorsement from the U.S. Coast Guard, is said to be “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. The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. § 55103 which provides: (a) In General. Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not transport passengers between ports or places in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel- (1) is wholly owned by citizens of the United States for purposes of engaging in coastwise traffic; (2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. (b)Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed. The Customs and Border Protection (“CBP”) Regulations, promulgated under the authority of 46 U.S.C. § 55103, provide: A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of the vessel, her navigation, ownership, or business. 19 C.F.R. § 4.50(b). You state that the subject individuals will be transported on the vessels for the purpose of installing computer software, operating the vessel, and receiving training on vessel operations and guidelines. In this context, and in accordance with previous Headquarters’ rulings, workmen, technicians, or observers transported by vessel between ports of the United States are not classified as “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b), if they are required to be on board to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are on board because of a necessary vessel ownership or business interest during the voyage. HQ 101699 (Nov. 5, 1975); see also HQ 116721 (Sept. 25, 2006) quoting HQ 101699. In the present case, to the extent the individuals would be engaged in any shipboard activities while traveling on the foreign vessel between coastwise ports, that would be “directly and substantially” related to the operation or business itself, as would be the case under the facts herein submitted, such individuals would not be considered passengers. We find that such individuals are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of such individuals is not in violation of 46 U.S.C. § 55103. HOLDING The subject individuals are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individuals is not in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch