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

HQ H156217 March 24, 2011 VES-3-OT:RR:BSTC:CCI H156217 LLB CATEGORY: Carriers Ms. Nora Pasca Norton Lilly International 249 E. Ocean Boulevard, Suite 200 Long Beach, California 90802 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b). Dear Ms. Pasca: This is in response to your correspondence of March 24, 2011, in which you inquire about the coastwise transportation of the individuals mentioned therein aboard the M/V APL THAILAND, M/V APL CHINA, M/V APL PHILLIPINES, and the M/V APL SINGAPORE. Our decision follows. FACTS: The voyages in question involve the transportation of the subject individuals aboard the non-coastwise-qualified M/V APL THAILAND, M/V APL CHINA, M/V APL PHILLIPINES, and the M/V APL SINGAPORE. (“the vessels”). The individuals will embark the M/V APL THAILAND in Long Beach, California on March 30, 2011, and will disembark in Oakland, California on March 31, 2011. On April 4, 2011, the individuals will embark the M/V APL CHINA in Long Beach and will disembark in Oakland on April 5, 2011. The individuals will embark the M/V APL PHILLIPINES in Long Beach on April 13, 2011, and will disembark in Oaklandon April 14, 2011. On April 20, 2011, the individuals will embark the M/V APL SINGAPORE in Long Beach and will disembark in Oakland on April 21, 2011. The individuals will be inspecting and pre-testing the vessel’s high voltage shore connection system before they connect the vessel to shore power. ISSUE: Whether the individuals described in the FACTS section above are “passengers” 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 individuals will be inspecting and pre-testing the vessel’s high voltage shore connection system before they connect the vessel to shore power. 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 individuals are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of the individuals in question would not be in violation of 46 U.S.C. § 55103. HOLDING: The individuals described in the FACTS section above are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individuals 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