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

HQ H042713 October 27, 2008 VES-3-02-OT:RR:BSTC:CCI H042713 GG CATEGORY: Carriers Mr. Jeffrey Brumley Biehl & Co. LP 3330 W. Esplanade Ave., Suite 602 Metairie, Louisiana 70002 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b) Dear Mr. Brumley: This is in response to your correspondence of October 27, 2008, in which you inquire about the coastwise transportation of an individual. Our ruling is set forth below. FACTS The voyage in question involves the transportation of the subject individual, a reefer technician, aboard the non-coastwise-qualified vessel M/V WESTERHAVEN (the “vessel”), from New Orleans, Louisiana, Houston, Texas, and then on to a foreign destination for the purpose of maintaining the reefer containers on board. The individual embarked the vessel on October 27, 2008, will remain on board and is expected to continue to sail with the vessel to a foreign port on October 31, 2008. ISSUE Whether the use of a non-coastwise-qualified vessel in the voyage described above constitutes an engagement in 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 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). 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. For purposes of § 55103, a passenger is defined under 19 CFR § 4.50(b) as “any person carried aboard a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.” See 19 CFR § 4.80a(a)(5). In this regard, persons transported on a vessel would be passengers unless they were “directly and substantially” connected with the operation, navigation, ownership, or business of that vessel itself. See Cust. Bull., Vol. 36, No. 23, p. 50 (June 5, 2002). In this case, the subject individual embarked the vessel at New Orleans, and will sail with it to Houston, and continue on to a foreign port. The subject individual will not disembark in Houston. Based on a plain meaning of section 55103, it is well settled that there is no coastwise violation when a passenger is transported from a coastwise point to a foreign destination. By definition, such an itinerary does not constitute coastwise transportation. See HQ H017628 (September 26, 2007) (holding that transportation of an individual from a coastwise port to a foreign destination is not coastwise transportation within the meaning of 46 U.S.C. § 55103). HOLDING The use of a non-coastwise-qualified vessel in the subject 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