Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b); HQ H011874 (May 31, 2007); HQ H023376 (May 10, 2008); HQ H027133 (May 5, 2008); HQ H042296 (Oct. 30, 2008); HQ 115360 (May 29, 2001); Department of Commerce, Bureau of Navigation, General Letter No. 117 (May 20, 1916)

HQ H054243 March 20, 2009 VES-3-02-OT:RR:BSTC:CCI H054243 LLB CATEGORY: Carriers Mr. James Mills Operations Coordinator residenSea 14471 Miramar Parkway, Suite 401 Miramar, Florida 33027 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b); HQ H011874 (May 31, 2007); HQ H023376 (May 10, 2008); HQ H027133 (May 5, 2008); HQ H042296 (Oct. 30, 2008); HQ 115360 (May 29, 2001); Department of Commerce, Bureau of Navigation, General Letter No. 117 (May 20, 1916) Dear Mr. Mills: This letter is in response to your correspondence dated March 11, 2009, in which you inquire about the "coastwise clearance" of the individual mentioned therein aboard THE WORLD. We are construing your correspondence as a request for a ruling to determine whether the coastwise laws, specifically 46 U.S.C. § 55103, and one of 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 individual, a guest lecturer, aboard the non-coastwise-qualified THE WORLD (the “vessel”). The individual will embark in Portland, Oregon on June 17, 2009 and disembark in Seattle, Washington on June 22, 2009. The subject individual will provide a lecture regarding the history of wine and wines of the Pacific Northwest and the United States. ISSUE Whether the individual described in the FACTS section above is a “passenger” 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 H011874 (May 31, 2007), CBP held that individuals transported aboard a vessel to “embark as clothing consultants and . . . give advice about fashion for the passengers onboard” were passengers within the meaning of 46 U.S.C. § 55103 insofar as these "fashion consultants" were not “directly and substantially” connected with the operation, navigation, ownership or business of the vessel itself. See also HQ H023376 (May 10, 2008) (holding that individuals transported for the purpose of providing a "lecture about New Orleans to the passengers onboard" were passengers within the meaning of 46 U.S.C. § 55103); HQ H027133 (May 5, 2008) (lecture on make up); and HQ H042296 (Oct. 30, 2008) (lectures about the environment, maps, and dolphins). Similarly, in the present case, you propose to transport an individual who will provide lectures about the history of wine and wines of the Pacific Northwest and the United States, as described above. Since the subject individual 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 ownership, navigation, operation or business of the vessel itself, such individual would be considered a passenger within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of this individual would be in violation of 46 U.S.C. § 55103. Notwithstanding the foregoing established precedent regarding lecturers, including a ruling that was issued to your company, see HQ H042296, supra, you assert other luxury cruise lines engage lecturers as a form of entertainment to the persons those cruise lines transport, which the ship owner is contractually obligated to provide as amenities aboard the vessel. Based on our review of the documents and statements submitted in HQ 115360 (May 29, 2001), which you reference in your ruling request and is discussed below, the vessel in question in the present case and the business of such vessel is distinguishable from the business of the luxury cruise lines indicated in your ruling request. The luxury cruise lines you named are in the business are providing onboard entertainment during voyages to "passengers" as defined by 19 C.F.R. § 4.50(b), which again, are "any person[s] carried on a vessel who [are] not connected with the operation of the vessel, her navigation, ownership, or business." Conversely, the subject vessel, based on our review of the Residence Agreement you reference in your March 11, 2009, ruling request, is engaged in the business of providing residences which include recreational and social accommodations. It was based on the foregoing fact that CBP determined the persons transported by THE WORLD, that is, residents that maintain their condominiums as full-time residences, are not passengers within the meaning of 19 C.F.R. § 4.50(b) insofar as their ownership interest in their accommodations aboard the vessel connect them with the business of the vessel. See HQ 115360. Allowing persons to be transported aboard a non-coastwise qualified vessel for purposes of entertaining individuals that reside on the vessel or are on the vessel for business purposes is contrary to the protectionist nature of the PVSA and established precedent regarding individuals accompanying those persons carried aboard such vessels for business purposes. HOLDING The subject individual that will be providing lectures as described in the FACTS section herein, is a passenger within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individual would be in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch