Coastwise Transportation; 46 U.S.C. § 55103

HQ H027127 May 1, 2008 VES-3-02-OT:RR:BSTC:CCI H027127 LLB CATEGORY: Carriers Mr. Clay Petroff Greer Shipping LLC 111 West Ocean Boulevard Suite 1245 Long Beach, California 90802 RE: Coastwise Transportation; 46 U.S.C. § 55103 Dear Mr. Petroff: This letter is in response to your April 29, 2008, correspondence, and the May 1, 2008, supplemental information provided by one of your employees. In your correspondence, you inquire about the coastwise transportation of the individual mentioned therein aboard the M/V SAGA NAVIGATOR. Our decision follows. FACTS The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified M/V SAGA NAVIGATOR (the “vessel”). The individual will embark in Long Beach, California on May 2, 2008 and will be disembarking in Hong Kong, China. 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. § 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. 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 Long Beach, California, a U.S. port, the individuals are disembarking at a foreign port, i.e., Hong Kong, China. 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