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

HQ H070381 July 31, 2009 VES-3-02:RR:BSTC:CCI H070381 ALS CATEGORY: Carriers Ms. Sarah Rose Entertainment Department Holland America Line, Inc. 300 Elliott Avenue West Seattle, Washington 98119 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b) Dear Ms. Rose: This letter is in response to your request of July 29, 2009, with respect to the coastwise transportation of two individuals. Our ruling is set forth below. FACTS: You ask whether the individuals may be transported on the non-coastwise qualified M/S WESTERDAM ("vessel"), from Seattle, Washington to Juneau, Alaska. The individuals will embark on August 2, 2009 in Seattle and disembark in Juneau on August 5, 2009. The individuals will evaluate the “Digital Workshop” programming and implement any necessary changes. You explain that the Digital Workshop is a training program in which basic computer skills are taught. 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: 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. 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 subject individuals will evaluate the “Digital Workshop” programming and implement any necessary changes. You explain that the Digital Workshop is a training program in which basic computer skills are taught. 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 CFR 4.50(b), 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. CBP Ruling HQ 101699 (November 5, 1975); see also CBP Ruling HQ 116721 (September 25, 2006). We have also held, however, that the carriage of training personnel aboard a vessel only for the purposes of implementing a training program does not establish a sufficient nexus to the vessel’s navigation, operation, ownership, or business. See CBP Ruling HQ H027452 (May 5, 2008). In the present case, the individuals would be engaged in implementing a computer skills training program. While this activity does conceivably advance the general business of the vessel company, is not "directly and substantially" related to the navigation, operation, ownership, or business of the vessel itself. Given such, the subject individuals would be considered passengers. See HQ H027452, supra. Therefore, we determine that the subject individuals are "passengers" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Accordingly, the coastwise transportation of such individuals would be in violation of 46 U.S.C. § 55103. HOLDING: The subject individuals are "passengers" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Therefore, the coastwise transportation of such individuals would be in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch