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

HQ H069526 July 24, 2009 VES-3-02-OT:RR:BSTC:CCI H069526 JLB CATEGORY: Carriers Mr. Jacob Stolarz Inchcape Shipping Services 2201 Market Street, Suite 810 Galveston, Texas 77550 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Mr. Stolarz: This letter is in response to your correspondence dated July 22, 2009, in which you request a ruling on whether the coastwise transportation of the individual mentioned therein aboard the M/V GINGA LION constitutes a violation of 46 U.S.C. § 55103. Our ruling on your request follows. FACTS The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified M/V GINGA LION (“the vessel”). The individual will embark on July 25, 2009 at Texas City, Texas and will disembark at the port of Freeport, Texas on or about August 10, 2009. The individual will travel aboard the vessel to discuss the seafarers appraisal reports, and the seafarers’ performance, attitude and behavior toward tasks with the master and chief engineer and to inform and motivate the crew accordingly. Additionally, the individual will identify areas of improvement for the seafarers so that they may be retrained, to hold meetings with seafarers on an individual basis and assist to solve any complaints such as payment of wages, working atmosphere onboard, etc. The individual will also check to ensure that provisions and stores are being supplied as required, to make tour reports of vessel visits, to observe the maintenance of the vessel, to observe the performance of the seafarers and to make any necessary reports and to maintain liaisons with all parties ashore for a smooth turn out of the vessel and to minimize the port stay of the vessel. ISSUE Whether the individual described above would be a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b)? LAW AND ANALYSIS The coastwise passenger statute, former 46 U.S.C. App. § 289 recodified as 46 U.S.C. § 55103, pursuant to P.L. 109-304 (October 6, 2006), states that no foreign vessel shall transport passengers “between ports or places in the United States to which the coastwise laws apply, either directly or by way of a foreign port,” under a penalty of $300 for each passenger so transported and landed. See also 19 C.F.R. § 4.80(b)(2). 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. Under 46 U.S.C. § 55103, a “passenger” is any person carried aboard a vessel “who is not connected with the operation of the vessel, her navigation, ownership, or business.” See also 19 C.F.R. § 4.50(b). In this regard, U.S. Customs and Border Protection (“CBP”) provides a strict interpretation of “passenger” defining the term as persons transported on a vessel unless they are "directly and substantially" connected with the operation, navigation, ownership or business of that vessel itself. See Customs Bulletin of June 5, 2002, Vol. 36, No. 23, at pp. 50. Pursuant to Headquarters Ruling Letter 101699, dated November 5, 1975, it is well settled that "workmen, technicians, or observers transported by vessel between ports of the United States are not classified as ‘passengers’ within the meaning of section 4.50(b) and section 289 [now section 55103] if they are required to be on board to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are on board because of a necessary vessel ownership or business interest during the voyage." See also Headquarters Ruling Letter 116721, dated September 25, 2006. Under the facts presented, the individual would be “directly and substantially” related to the operation and business of the vessel during the voyage and would not be considered a “passenger” under 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Consequently, the coastwise transportation of the subject individual is not in violation of 46 U.S.C. § 55103. HOLDING The subject individual is not 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 an individual is not in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb, Chief Cargo Security, Carriers and Immigration Branch