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

HQ H072242 August 17, 2009 VES-3-02:OT:RR:BSTC:CCI H072242 ALS CATEGORY: Carriers Ms. Divna Mueller Boarding Agent APM Terminals 2500 Navy Way Terminal Island, California 90731 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b) Dear Ms. Mueller: This letter is in response to your request of August 18, 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/V SEALAND LIGHTNING ("vessel"), from Los Angeles, California to Oakland, California. The individuals will embark on August 18, 2009 in Los Angeles and disembark in Oakland on August 20, 2009. The individuals are the sons of the vessel’s Chief Engineer. 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 individuals are the sons of the Chief Engineer. It is well-settled that immediate family members (i.e., a spouse and children) of the officers of the vessel transported by the 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). See CBP Ruling HQ H004335 (December 13, 2006), citing U.S. Customs Service General Letter No. 117 (May 20, 1916). We have previously held that the Chief Engineer is an officer of the vessel. See, e.g., CBP Ruling HQ H050235 (January 28, 2009). Thus, in the present case, to the extent that the individuals in question are the sons of the Chief Engineer of the vessel, such individuals would not be considered to be passengers. See also Customs Bulletin, vol. 36, no. 8, p. 50 (February 20, 2002). 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 CFR 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