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

HQ H028576 May 16, 2008 VES-3-02:RR:BSTC:CCI H028576 ALS CATEGORY: Carriers Ms. Joanne Dow Moran Shipping Agencies, Inc. 3400 Dillon Street Baltimore, Maryland 21224 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b) Dear Ms. Dow: This letter is in response to your request of May 16, 2008, with respect to the coastwise transportation of a certain individual. Our ruling is set forth below. FACTS: You ask whether a certain individual may be transported on the non-coastwise qualified M/T LODESTAR GRACE (the "vessel"), from Baltimore, Maryland to St. Croix, U.S. Virgin Islands. The individual will embark in Baltimore on May 17, 2008, and will disembark in St. Croix on or about May 23, 2008. The individual is an “Owner’s Superintendent” and will be on board to provide “on the job training of his crew.” ISSUE: Whether the proposed transportation of the individual is a coastwise movement within the meaning 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. The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. § 55103 (recodified by Pub. L. 109-304, enacted on October 6, 2006) and provides that: 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 is wholly owned by citizens of the United States for purposes of engaging in the coastwise traffic; and 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. Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed. You state that the subject individual will be disembarking in St. Croix after having embarked in Baltimore. Based on a plain reading of section 55103, it is well settled that there is no coastwise violation when a passenger embarks at a coastwise point and disembarks at a foreign destination. (See 19 CFR §§ 4.80, 4.80a.) The coastwise laws do not apply to the U.S. Virgin Islands until the President declares by proclamation that the coastwise laws apply to the U.S. Virgin Islands (46 U.S.C. § 55101(b)(4)). See also CBP Ruling HQ H023513 (February 21, 2008). To date, no such proclamation has been issued. Thus, such an itinerary does not constitute coastwise transportation. Therefore, given that the subject individual will not be transported coastwise, there is no violation of section 55103 in this case.  HOLDING:The subject individual is not transported coastwise within the meaning of 46 U.S.C. § 55103. Therefore, the transportation of such individual from Baltimore, Maryland to St. Croix, U.S. Virgin Islands is not in violation of 46 U.S.C. § 55103.Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch