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

HQ H024542 March 14, 2008 VES-3-02-OT:RR:BSTC:CCI H024542 LLB CATEGORY: Carriers Mr. Desmond McCarthy Wilhelmsen Ships Service 3220 Blume Drive, Suite 195 Richmond, California 94806 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Mr. McCarthy: This letter is in response to your correspondence of March 12, 20088, supplemented by your electronic mail of March 3, 2008, in which you request "permission for a coastwise rider permit." Insofar as your inquiry involves the coastwise transportation of the individual mentioned therein, we are construing your inquiry as a ruling request to determine the applicability of the Passenger Services Vessel Act, codified at 46 U.S.C. § 55103, to the facts you have provided to this office. Our decision follows. FACTS The voyage in question involves the transportation of the subject individual currently aboard the non-coastwise-qualified M/V HANSA RENDSBURG (the "vessel") from Oakland, California to Vancouver, Canada. The subject individual is preparing the vessel for an ISM (International Safety Management) inspection and an IMO (International Maritime Organization) inspection. The inspections are expected to be completed on March 18, 2008, at which time the subject individual will disembark in Vancouver. ISSUE Whether the use of a non-coastwise qualified vessel in the voyage described above constitutes an engagement in the coastwise trade in violation of 46 U.S.C. § 55103. 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. See 33 C.F.R. § 2.22(a)(2)(2008). The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. § 551031 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). Based on the facts you provided, the coastwise laws are inapplicable to the subject individuals' voyage. Although the subject individuals will embark the vessel at Oakland, California, a U.S. port, the individuals are disembarking at a foreign port, i.e., Vancouver, Canada. Therefore, these individuals will not be in violation of the coastwise laws insofar as their transportation does not involve disembarkation at a coastwise port. HOLDING The use of a non-coastwise qualified vessel in the voyage described above does not constitute an engagement in the coastwise trade in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch 1 Recodified by Pub. L. 109-304, enacted on October 6, 2006.