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

HQ H058900 May 4, 2009 VES-3-02-RR:BSTC:CCI H058900 CK CATEGORY: Carriers Ms. Sarah Rose Holland America Line Inc. 300 Elliott Avenue West Seattle, WA 98119 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Ms. Rose: This is in response to your correspondence of April 21, 2009, in which you inquire about the coastwise transportation of the five (5) individuals mentioned therein aboard the M.S. ROTTERDAM. Our decision follows. FACTS: The voyage in question involves the transportation of four individuals aboard the non-coastwise-qualified M.S. ROTTERDAM (the “vessel”) from Ft. Lauderdale, Florida to New York, New York. These individuals are expected to embark on May 13, 2009 and disembark in New York on May 16, 2009. One of the individuals is a manager in the entertainment department, and will be overseeing the installation of the onboard Lido Pool Party. The four other individuals will be onboard to load and install the scenic elements and bandstands required for the Lido Pool Party event. ISSUE: Whether the five 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. 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 this case, one of the individuals is a manager in the entertainment department, and will be overseeing the installation of the onboard Lido Pool Party. The four other individuals will be onboard to load and install the scenic elements and bandstands required for the Lido Pool Party event. In this context, and in accordance with previous Headquarters’ rulings, workmen, technicians, or observers transported by vessel between ports of the United States are not classified as “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b), if they are required to be on board to contribute to the accomplishment of the operation of the vessel during the voyage or are on board because of a necessary vessel ownership or business interest during the voyage. See HQ 101699 (Nov. 5, 1975); HQ 116721 (Sept. 25, 2006) quoting HQ 101699; see also HQ H018736 (Nov. 1, 2007) (singer); HQ H107747 (Oct. 2, 2007) (pianist, juggler, and singer); and HQ H017032 (Sept. 14, 2007) (comedian); HQ H018182 (Oct. 11, 2007) (installation of new production show and cast); HQ H024924, (April 9, 2008) (singer and manager for onboard production); see also HQ H015286 (August 6, 2007) (training staff on new company policies and procedures). In the present case, to the extent the individuals would 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 or business itself, as would be the case under the facts herein submitted, such individuals would not be considered passengers. Accordingly, the coastwise transportation of such individuals is not in violation of 46 U.S.C. § 55103. HOLDING The subject individuals are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individuals is not in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch