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

HQ H059436 May 8, 2009 VES-3-02-RR:BSTC:CCI H059436 CK CATEGORY: Carriers Mr. Chris Martin Manager, Port Operations 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 Mr. Martin: This is in response to your correspondence of May 4, 2009, in which you inquire about the coastwise transportation of the individuals mentioned therein aboard the M.S. ROTTERDAM. Our decision follows. FACTS: The voyage in question involves the transportation of three (3) 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 individual is the Manager, Onboard Revenue, and the person responsible for overseeing concessionaire and onboard services. He will be onboard to conduct a series of meetings with the concessionaire for gift shops and spa services, discuss the revenue generated from the vessel’s World Cruise, and determine what services/products are necessary for future World Cruise sailings. One individual is responsible for the World Cruise reservations and itinerary deviations. She will meet to discuss the cruise logistics and passenger satisfaction with the various ports of call with ship staff. The third individual is the Manager, Marine Hotel Operations. He is responsible for the day-to-day operations onboard the ship and ensuring passenger satisfaction with all passenger-related activities onboard the vessel. He will be discussing the outcome of the last World Cruise with the ship staff in order to make adjustments for the future and add new items of interest for returning guests. ISSUE: Whether the three 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 individual is the Manager, Onboard Revenue, and the person responsible for overseeing concessionaire and onboard services. He will be onboard to conduct a series of meetings with the concessionaire for gift shops and spa services, discuss the revenue generated from the vessel’s World Cruise, and determine what services/products are necessary for future World Cruise sailings. One individual is responsible for the World Cruise reservations and itinerary deviations. She will meet to discuss the cruise logistics and passenger satisfaction with the various ports of call with ship staff. The third individual is the Manager, Marine Hotel Operations. He is responsible for the day-to-day operations onboard the ship and ensuring passenger satisfaction with all passenger-related activities onboard the vessel. He will be discussing the outcome of the last World Cruise with the ship staff in order to make adjustments for the future and add new items of interest for returning guests. 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