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

HQ H075897 September 16, 2009 VES-3-02-RR:BSTC:CCI H075897 GOB CATEGORY: Carriers Gezina D.J. Klip Schanzenstrasse 11 21614 Buxtehude Germany RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b) Dear Captain Klip: This letter is in response to your letter of September 16, 2009, with respect to your proposed transportation. Our ruling is set forth below. FACTS: You ask whether you may be transported on the non-coastwise-qualified M/V MERIAN (the “vessel”), from Balboa, Panama to Pascagoula, Mississippi from September 24, 2009 through September 30, 2009, for the purpose of performing International Safety Management and International Ship and Port Facility Security audits. ISSUE: Whether you a “passenger” 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. The transportation which you propose is from Balboa, Panama, which is a foreign (or non-coastwise) point, to Pascagoula, Mississippi, a coastwise point. This movement is not a coastwise movement, i.e., it is not transportation to which 46 U.S.C. § 55103 applies. Therefore, there is no potential prohibition under the coastwise laws with respect to this proposed transportation. HOLDING: The proposed transportation from Balboa, Panama to Pascagoula, Mississippi is not transportation to which 46 U.S.C. § 55103 applies. Therefore, there is no potential prohibition under the coastwise laws with respect to this proposed transportation. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch