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

HQ H069717 July 27, 2009 VES-3-02-RR:BSTC:CCI H069717 GOB CATEGORY: Carriers David Kramer Fleet Manager Seaspan Ship Management 2600-200 Granville Street Vancouver V6C 1S4 Canada RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b) Dear Mr. Kramer: This letter is in response to your letter of July 23, 2009, with respect to the coastwise transportation of certain individuals. Our ruling is set forth below. FACTS: You ask whether several individuals may be transported on the non-coastwise-qualified CSCL CALLAO (the “vessel”), from Seattle, Washington to Vancouver, British Columbia between August 4, 2009 and August 5, 2009, for the purpose of performing a management inspection of the vessel. The management inspection will include the following: inspection of all machinery and navigation and communication equipment; review of the vessel’s compliance with management procedures and standards; inspection of lifesaving appliances and firefighting equipment; review of the performance of the staff; and review of the vessel’s compliance with U.S. and international port regulations. ISSUE: Whether the subject individuals are “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 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 (recodified by Pub. L. 109-304, enacted on October 6, 2006) and provides that: (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- is wholly owned by citizens of the United States for purposes of engaging in the coastwise traffic; and 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. Section 4.50(b), Customs and Border Protection (“CBP”) Regulations (19 CFR § 4.50(b)) provides as follows: A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business. You state that the proposed transportation is from Seattle, Washington to Vancouver, British Columbia. Because Vancouver, British Columbia is not a port in the U.S., the proposed transportation is not within the scope of 46 U.S.C. § 55103. Therefore, there is no prohibition in the coastwise laws (including 46 U.S.C. § 55103) with respect to the proposed transportation of the individuals. HOLDING: Because Vancouver, British Columbia is not a port in the U.S., the proposed transportation is not within the scope of 46 U.S.C. § 55103. Therefore, there is no prohibition in the coastwise laws (including 46 U.S.C. § 55103) with respect to the proposed transportation of the individuals. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch