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

HQ H109315 June 11, 2010 VES-3-02-RR:BSTC:CCI H109315 LLB CATEGORY: Carriers Mr. Corey Hume T. Parker Host of Delaware, Inc. The Robert F. Senseny Building 1 Hausel Road, Suite 208 Wilmington, Deleware 19801 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Mr. Hume: This letter is in response to your correspondence of June 10, 2010, in which you inquire about the coastwise transportation of the individual mentioned therein aboard the M/V TRAVELLER. Our decision follows. FACTS The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified M/V TRAVELLER (the “vessel”) who will embark in Philadelphia, Pennsylvania on June 12, 2010 and disembark in Houston, Texas on June 18, 2010. The subject individual is the fiancé of the vessel’s chief officer. ISSUE Whether the individual is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b) LAW AND ANALYSIS The coastwise passenger statute, 46 U.S.C. § 55103 (recodified from former 46 U.S.C. App. § 289; Pub. L. 109-304, October 6, 2006), provides that no vessel may transport passengers between ports or places in the United States either directly or by way of a foreign port, upon a penalty of $300 for every passenger so transported and landed, unless it: (1) is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and (2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 of Title 46, United States Code, or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. Under the regulations promulgated under the authority of 19 U.S.C. § 55103, a “passenger” is defined as it is under 19 C.F.R. § 4.50(b), which provides that a passenger is “any person carried aboard a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.” See 19 C.F.R. § 4.80a(a)(5). In this regard, persons transported on a vessel would be passengers unless they were “directly and substantially” connected with the operation, navigation, ownership, or business of that vessel itself. See Cust. Bull., Vol. 36, No. 23, p. 50 (June 5, 2002). We note that the above notice also repeated the long-held CBP position that in accordance with General Letter No. 117 of May 20, 1916, from the former Bureau of Navigation, wives and children of the officers of a vessel are not passengers since they are connected to the ownership and business of the vessel. Insofar as the subject individual is not a spouse or child of an officer of the vessel and such individual is not directly and substantially connected with the operation, navigation, ownership, or business of the vessel itself, the individual is a “passenger” within the meaning of 46 U.S.C. § 55103. Therefore, the individual’s transportation aboard the vessel would be in violation of 46 U.S.C. § 55103. HOLDING The fiancé of the vessel’s chief officer 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 such individual on a non-coastwise-qualified vessel would be in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch