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

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H244500 July 30, 2013 VES-3-02-OT:RR:BSTC:CCR HQ H244500 WRB CATEGORY: Carriers Mr. Christopher Mourgos Norton Lilly International350 Frank H. Ogawa Plaza , Suite 600 Oakland, CA 94612 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Mr. Mourgos: This letter is in response to your correspondence of July 24, 2013, with respect to the coastwise transportation of one individual. Our ruling is set forth below. FACTS: You ask whether one individual may be transported on the non-coastwise-qualified M/V APL SINGAPORE (the “vessel”), from Oakland, California, to Dutch Harbor, Alaska, embarking August 2, 2013, and disembarking August 8, 2013. The individual is the master’s daughter. ISSUE Whether the individual described above would be 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 (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- (1) is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and (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), 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, navigation, ownership, or business of the vessel. It is CBP’s longstanding position that the spouse and children of the 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. Accordingly, the master’s child may be aboard a non-coastwise-qualified vessel during a coastwise voyage and would not be considered a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). See Ruling Letter H007256 (Feb. 26, 2007; and Ruling Letter H020279 (Nov. 30, 2007). Consequently, the coastwise transportation of the subject individual is not 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). Sincerely, Lisa L. Burley Acting Supervisory Attorney-Advisor/Chief Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations & Rulings U.S. Customs and Border Protection