Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b); HQ H008510 (Mar. 22, 2007); HQ H008513 (Mar. 23, 2007); HQ H010696 (May 9, 2007); HQ H010662 (May 9, 2007); HQ H013452 (June 29, 2007); HQ H013701 (July 10, 2007)

HQ H026209 April 22, 2008 VES-3-02-OT:RR:BSTC:CCI H026209 LLB CATEGORY: Carriers Mr. Steven Krupa Maersk Line Limited One Commercial Place Norfolk, Virginia RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b); HQ H008510 (Mar. 22, 2007); HQ H008513 (Mar. 23, 2007); HQ H010696 (May 9, 2007); HQ H010662 (May 9, 2007); HQ H013452 (June 29, 2007); HQ H013701 (July 10, 2007) Dear Mr. Krupa: This letter is in response to your correspondence dated April 15, 2008, 2008. In your correspondence, you inquire about the coastwise transportation of a claims risk manager aboard the MAERSK CAROLINA. Our decision follows. FACTS The voyage in question involves the transportation of the subject individual, a claims risk manager, aboard the non-coastwise-qualified MAERSK CAROLINA (the "vessel”) from Newark, New Jersey to Norfolk, Virginia. The individual is expected to embark in Newark on April 28, 2007 and disembark in Norfolk on April 30, 2008. The subject individual's position with Maersk involves "identification, tracking, and settlement of various types of marine claims, and assessing liabilities in a variety of accident and injury situations . . . [a]s such the position requires an understanding of Maersk Line, Limited policies and procedures from the sea perspective, and an understanding of the type of vessel." The subject individual will be transported aboard the vessel to “observe the crew preparation for port arrival and pre-cargo operation procedures, observing those actions from the vessel's view." ISSUE Whether the individual described in the FACTS section above is a “passenger” 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. See 33 C.F.R. § 2.22(a)(2). 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). In HQ H008510 (Mar. 22, 2007) and HQ H008513 (Mar. 23, 2007), CBP held that shipping agency trainees transported aboard a vessel “to observ[e] daily life on a vessel and gain[] better insight about what their colleagues [that] work[] on a vessel actually do” or “observe what goes on during a vessel’s voyage” were passengers within the meaning of 46 U.S.C. § 55103 insofar as the trainees were not “directly and substantially”  connected with the operation, navigation, ownership or business of the vessel itself. See also, e.g., HQ H010696 (May 9, 2007) and HQ H010662 (May 9, 2007)(holding that shipping agency's human resources manager and ship broker’s trainee, respectively, transported coastwise “to observe shipboard operations” were passengers); HQ H013452 (June 29, 2007) (holding that transporting a stevedore for training purposes was not “directly and substantially” related to the operation or business of the vessel itself); HQ H013701 (July 10, 2007) (holding that customer service auditors and sales representatives transported to familiarize themselves with shipboard operations were passengers). Similarly, in the present case, you propose to transport a claims risk manager to, inter alia, "observe the crew preparation for port arrival and pre-cargo operation procedures, observing those actions from the vessel's view." Although familiarizing a claims risk manager with vessel operations may foster the business of the shipping company, it does not connect this individual directly and substantially with the business of the vessel itself. To the extent that the subject individual would not have been engaged in any shipboard activities while traveling on the foreign vessel between coastwise ports, that would be “directly and substantially” related to the operation, navigation, or business of the vessel itself, such individual would be considered a passenger within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). HOLDING The claims risk manager is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of that individual would be in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch