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 H019524 (Apr. 4, 2008); HQ H026209 (Apr. 22, 2008)

HQ H028905 May 22, 2008 VES-3-02-OT:RR:BSTC:CCI H028905 LLB CATEGORY: Carriers Ms. Robin Preciado Silversea Cruises, Ltd. 110 East Broward Boulevard Fort Lauderdale, Florida 33301 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); HQ H019524 (Apr. 4, 2008); HQ H026209 (Apr. 22, 2008) Dear Ms. Preciado: This letter is in response to your correspondence dated May 20, 2008. In your correspondence you request "permission" for the individual's mentioned therein to be transported aboard the SILVER SHADOW. We are construing your correspondence as a request for a ruling to determine whether the coastwise laws, specifically 46 U.S.C. § 55103, and the regulations promulgated under that statute, 19 C.F.R. § 4.50(b), apply to the factual scenario you present. Our decision follows. FACTS The voyage in question involves the transportation of the subject individuals, five reservation agents and a reservation manager, aboard the non-coastwise-qualified SILVER SHADOW (the "vessel”), a cruise vessel in the fleet of Silversea Cruises. The individuals are expected to embark in Juneau, Alaska on June 26, 2008 and disembark in San Francisco, California on July 1, 2008. With regard to the reservation agents, they will be transported aboard the vessel for “training and familiarization with the product." The reservation manager "will be supervising the familiarization." 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. 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. 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); HQ H019524 (Apr. 4, 2008) (holding that assistant terminal managers transported to "understand what the vessel crew’s responsibilities are once [] cargo has unloaded" were passengers); HQ H026209 (Apr. 22, 2008) (holding that claims risk manager transported to “observe the crew preparation for port arrival and pre-cargo operation procedures, observing those actions from the vessel's view" was a passenger). Similarly, in the present case, you propose to transport reservation agents for "training and familiarization with the product" and to transport a reservations manager to supervise the foregoing familiarization. Although familiarizing reservations agents with the cruise vessel's operations may foster the business of the cruise line, it does not connect these individuals directly and substantially with the business of the vessel itself. To the extent that the subject individuals will not 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, navigation, or business of the vessel itself, such individuals would be considered passengers within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). HOLDING The reservation agents and the reservation manager are “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of these individuals would be in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch