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

HQ H129378 October 27, 2010 VES-3-02-RR:BSTC:CCI H129378 GOB CATEGORY: Carriers Gary Kubit Maersk Line, Limited One Commercial Place, 20th Floor Norfolk, VA 23510-2103 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b) Dear Mr. Kubit: This letter is in response to your correspondence of October 26, 2010, with respect to the coastwise transportation of certain individuals. Our ruling is set forth below. FACTS: You ask whether individuals may be transported on the non-coastwise-qualified SL CHAMPION (the “vessel”), from Miami, Florida to Newark, New Jersey, from November 6, 2010 through November 30, 2010. The individuals are the spouse and children of the chief engineer of the vessel. ISSUE: Whether the subject individuals are “passengers” 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. It is CBP’s longstanding position that the spouses and children of officers of a vessel are not passengers for purposes of the passenger coastwise statute. See General Letter No. 117 [May 20, 1916] from the former Bureau of Navigation. The first engineer is an “officer of the vessel.” See, for example, HQ H023422 [February 19, 2008] and HQ H042037 [October 22, 2008]. Therefore, the spouse and children of the chief engineer are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Consequently, the coastwise transportation of the subject individuals is not in violation of 46 U.S.C. § 55103. HOLDING: The subject individuals are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b). Therefore, the coastwise transportation of such individuals is not 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 U.S. Customs and Border Protection