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

HQ H053296 March 5, 2009 VES-3-02-OT:RR:BSTC:CCI H053296 LLB CATEGORY: Carriers Ms. Toni Medina APM Terminals 2500 Navy Way Terminal Island, California 90731 RE: Coastwise Transportation; 46 U.S.C. § 55103 Dear Ms. Medina: This letter is in response to your March 2, 2009, correspondence in which you request that the subject individuals mentioned therein to be allowed to "ride" aboard the MAERSK ALTAIR. 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 aboard the non-coastwise-qualified MAERSK ALTAIR (the “vessel”). The individuals will embark in Los Angeles, California on March 6, 2009 and will be disembarking in Vancouver, Canada. 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 Los Angeles, California, a U.S. port, the individuals are disembarking at a foreign port, i.e., Vancouver, Canada. 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