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

HQ H083895 November 16, 2009 VES-3-02:RR:BSTC:CCI H083895 ALS CATEGORY: Carriers Captain Jamie McNamara Operations Manager NYC Atlantic Container Line 194 Wood Avenue, Suite 500 Iselin, New Jersey 08830 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b) Dear Capt. McNamara: This letter is in response to your request with respect to the coastwise transportation of an individual. We received your request on March 30, 2009. Our ruling is set forth below. FACTS: You ask whether an individual may be transported on the non-coastwise qualified M/V ATLANTIC CONCERT ("vessel"), from Newark, New Jersey to Baltimore, Maryland. The individual will embark on November 17, 2009 in Newark and disembark in Newark on November 21, 2009. You state that the individual will be onboard to observe the “day-to-day activities aboard the ship.” ISSUE: Whether the subject individual is 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, which provides: (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- (1) is wholly owned by citizens of the United States for purposes of engaging in coastwise traffic; (2) 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. The Customs and Border Protection ("CBP") Regulations, promulgated under the authority of 46 U.S.C. § 55103, provide: A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of the vessel, her navigation, ownership, or business. See 19 CFR 4.50(b).In CBP Ruling HQ H008510 (March 22, 2007) and CBP Ruling HQ H008513 (March 23, 2007), CBP held that shipping agency trainees transported aboard a vessel "to observ[e] daily life on a vessel and gain better insight about what their colleagues [that] work on a vessel actually do" or "observe what goes on during a vessel’s voyage" were passengers within the meaning of 46 U.S.C. § 55103 insofar as the trainees were not "directly and substantially" connected with the operation, navigation, ownership or business of the vessel itself. Similarly, in the present case, you propose to transport a terminal operations staff member to observe the “day-to-day activities aboard the ship.” Although familiarizing a terminal operations staff member with vessel operations may foster the business of the shipping company, it does not connect the terminal operations staff member directly and substantially with the business of the vessel itself. To the extent that the subject individual would not have been engaged in any shipboard activities while traveling on the foreign vessel between coastwise ports, that would be "directly and substantially" related to the operation, navigation, or business of the vessel itself, such individual would be considered a passenger within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b).HOLDING: The subject individual described above is a "passenger" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Therefore, the coastwise transportation of such individual is in violation of 46 U.S.C. § 55103.Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch