Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b); HQ H008510 (Mar. 22, 2007); HQ H008513 (Mar. 23, 2007); HQ H010696 (May 9, 2007); HQ H010662 (May 9, 2007); HQ H013452 (June 29, 2007); HQ H013701 (July 10, 2007); HQ H026209 (Apr. 22, 2008).

HQ H106855 May 27, 2010 VES-3-02-OT:RR:BSTC:CCI H106855 LLB CATEGORY: Carriers Ms. Leanne Dillon Holland America Line 300 Elliott Avenue West Seattle, Washington 98119 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b); HQ H008510 (Mar. 22, 2007); HQ H008513 (Mar. 23, 2007); HQ H010696 (May 9, 2007); HQ H010662 (May 9, 2007); HQ H013452 (June 29, 2007); HQ H013701 (July 10, 2007); HQ H026209 (Apr. 22, 2008). Dear Ms. Dillon: This letter is in response to your correspondence dated May 21, and May 25, 2010. In your correspondence, you inquire about the coastwise transportation of a buyer in Holland America Line’s Technical Purchasing Department aboard the M/S ROTTERDAM. Our decision follows. FACTS The voyage in question involves the transportation of the subject individual, a buyer, aboard the non-coastwise-qualified M/S ROTTERDAM (the "vessel”) from Seattle, Washington to Juneau, Alaska. The individual is expected to embark in Seattle on June 5, 2010 and disembark in Juneau on June 7, 2010. The subject individual will be transported aboard the vessel to get “a better understanding of the operations onboard, which will help facilitate the procurement process . . .” ISSUE Whether the individual described in the FACTS section above is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 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. See 33 C.F.R. § 2.22(a)(2)(2010). 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. 19 C.F.R. § 4.50(b). In HQ H008510 (Mar. 22, 2007) and HQ H008513 (Mar. 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. See also, e.g., HQ H026209 (Apr. 22, 2008) (holding that shipping agency’s claims risk manager transported to "observe the crew preparation for port arrival and pre-cargo operation procedures, observing those actions from the vessel's view" was a passenger); HQ H013701 (July 10, 2007) (holding that customer service auditors and sales representatives transported to familiarize themselves with shipboard operations were passengers); HQ H013452 (June 29, 2007) (holding that transporting a stevedore for training purposes was not “directly and substantially” related to the operation or business of the vessel itself);HQ H010696 (May 9, 2007) and HQ H010662 (May 9, 2007)(holding that shipping agency's human resources manager and ship broker’s trainee, respectively, transported coastwise “to observe shipboard operations” were passengers). Similarly, in the present case, you propose to transport a buyer to get “a better understanding of the operations onboard, which will help facilitate the procurement process . . .” Although familiarizing a buyer with vessel operations may foster the business of the cruise line, it does not connect this individual 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 C.F.R. § 4.50(b). HOLDING The buyer is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of that individual would be in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch