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

HQ H146636 February 8, 2011 VES-3-02:OT:RR:BSTC:CCI H146636 ALS CATEGORY: Carriers Mr. Mark Crews TFMarine 1201 Corbin Street Elizabeth, New Jersey 07201 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b) ` Dear Mr. Crews: This letter is in response to your request of February 7, 2011, with respect to the coastwise transportation of two individuals. Our ruling is set forth below. FACTS: You ask whether the individuals may be transported on the non-coastwise qualified M/V YM SHANGHAI (the "vessel"). The individuals will be transported from Newark, New Jersey, embarking on February 6, 2011, to Savannah, Georgia, disembarking on February 11, 2011. The individuals are the daughters of the Captain of the vessel. The daughters do not live in the same household as the Captain. 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: 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. 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. You state that the individuals are the daughters of the Captain of the vessel. You also state that the daughters do not live in the same household as the Captain. It is well-settled that immediate family members (i.e., a spouse and children) of the officers of the vessel transported by the vessel between ports of the United States are not classified as "passengers" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). See, e.g., CBP Ruling HQ H004335 (December 13, 2006) citing Bureau of Navigation General Letter No. 117 (May 20, 1916). General Letter No. 117 also states that “family” in this context includes “only those persons who are actually a part of the household. Therefore, while we of course recognize the Captain as an officer of the vessel, the daughters in this case would be considered passengers because they are not members of the Captain’s household. Accordingly, the coastwise transportation of such individuals would be in violation of 46 U.S.C. § 55103. HOLDING: The subject individuals are “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Therefore, the coastwise transportation of such individuals would 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 U.S. Customs and Border Protection