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

HQ H122345 September 10, 2010 VES-3-OT:RR:BSTC:CCI H122345 LLB CATEGORY: Carriers Ms. Gill Birchall Bibby Ship Management Limited 105 Duke Street Liverpool L1 5JQ England RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b). Dear Ms. Birchall: This is in response to your correspondence of September 8, 2010, in which you inquire about the coastwise transportation of the subject individual aboard the MAERSK TARRAGONA and MAERSK TANGIER. Our decision follows. FACTS: The voyages in question involve the transportation of the subject individual aboard the non-coastwise-qualified MAERSK TARRAGONA and the MAERSK TANGIER (the “vessels”). For the first voyage, the subject individual will embark the MAERSK TARRAGONA in Wilmington, North Carolina on September 12, 2010 and disembark that vessel in Miami, Florida on September 15, 2010. For the second voyage, the subject individual will embark the MAERSK TANGIER in Miami on September 15, 2010 and disembark that vessel in Savannah, Georgia on September 16, 2010. On both voyages, the individual will perform ISM (International Safety Management) inspection. 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. 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. Section 4.50 (b) of the Customs and Border Protection (“CBP”) Regulations 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. In the present case, you state that the subject individual is performing an ISM inspection of the vessels. In accordance with previous Headquarters rulings, workmen, technicians, or observers transported by vessel between ports of the United States are not classified as “passengers”, within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b), if they are required to be onboard to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are onboard because of a necessary vessel ownership or business interest during the voyage. See HQ 101699 (Nov. 5, 1975); see also HQ 116721 (Sept. 25, 2006) quoting HQ 101699. Furthermore, the shipboard activities engaged in by such aforementioned individuals while traveling on a non-coastwise-qualified vessel between coastwise ports must be “directly and substantially” related to the operation, navigation, ownership, or business of the vessel itself in order for such individuals to not be considered as passengers under these provisions of law.  In the present case, we find that the proposed activities described in your request would be directly and substantially connected with the operation of the vessel and we therefore determine that the subject individual would not be considered a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b) for the subject voyage. Accordingly, the coastwise transportation of the subject individual would not be in violation of 46 U.S.C. § 55103. HOLDING: The individual described in the FACTS section above is not 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 would not be in violation of 46 U.S.C. § 55103. Sincerely, George Frederick McCray Supervisory Attorney-Advisor/Chief Cargo Security, Carriers and Immigration Branch Office of International Trade, Regulations & Rulings