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

HQ H155635 March 30, 2011 VES-3-OT:RR:BSTC:CCI H155635 CK CATEGORY: Carriers Milka Zambrano USA Maritime Enterprises, Inc. P.O. Box 22723 Ft. Lauderdale, FL 33335 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b). Dear Mr. Zambrano: This letter is in response to your correspondence of March 22, 2011, with respect to the coastwise transportation of certain individuals. Our ruling is set forth below. FACTS: You ask whether an individual, the owner’s representative, may be transported aboard the non-coastwise-qualified M/V WASABORG, from Port Everglades, Florida on April 12, 2011 to Jacksonville, Florida, before disembarking at Port Everglades, Florida on April 15, 2011; and then travel aboard the M/V FRONTIER CHALLENGER from Port Everglades, Florida on April 19, 2011 to Jacksonville, Florida, before again disembarking at Port Everglades, Florida on April 22, 2011. This individual will be transported for the purpose of overseeing loading and discharging operations. ISSUE: Whether the subject individual is a “passenger” 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 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 will be transported for the purpose of overseeing loading and discharging operations. We note that the point of embarkation and disembarkation is the same coastwise point, rather than two separate coastwise points. However, it is possible that the subject individual may disembark the vessels for a period while the vessels are in Jacksonville, Florida, in which case the above-cited law is applicable. 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) and see also HQ 116721 (Sept. 25, 2006) quoting HQ 101699; see also HQ H043314 (Nov. 7, 2008) and HQ H021922 (Jan. 17, 2008)(holding that individuals transported for the purpose of discussing the vessel operating budget with the vessel’s management were not passengers); HQ H018972 (Oct. 26, 2007)(holding that individual transported for the purpose of auditing the vessel’s financial records was not a passenger). 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 is not a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of the individual in question would not be in violation of 46 U.S.C. § 55103. HOLDING: The subject individual is not a “passenger” 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