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 H257710 September 30, 2014 VES-3-02-OT:RR:BSTC:CCR HQ H257710 WRB CATEGORY: Carriers Capt. Knud Jorgensen M/V AXEL MAERSK c/o Norton Lilly International 5080 McLester Street APM Terminal Control Bldg., 3RD Floor Elizabeth, NJ 07207 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Capt. Jorgensen: This letter is in response to your correspondence of September 27, 2014, 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 AXEL MAERSK (the “vessel”). The subject individual will embark the vessel at Newark, New Jersey, on or about October 9, 2014, and disembark at Savannah, Georgia, on or about October 15, 2014. The subject individual is the fiancée of the vessel’s Master. 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 (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. In the present case, you state that the subject individual is the fiancée of the vessel’s Master. Under the regulations promulgated under the authority of 19 U.S.C. § 55103, a “passenger” is defined as it is under 19 C.F.R. § 4.50(b), which provides that a passenger is “any person carried aboard a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.” See 19 C.F.R. § 4.80a(a)(5). In this regard, persons transported on a vessel would be passengers unless they were “directly and substantially” connected with the operation, navigation, ownership, or business of that vessel itself. See Cust. Bull., Vol. 36, No. 23, p. 50 (June 5, 2002). We note that the above notice also repeated the long-held CBP position that in accordance with General Letter No. 117 of May 20, 1916, from the former Bureau of Navigation, wives and children of the officers of a vessel are not passengers since they are connected to the ownership and business of the vessel. Insofar as the subject individual is not a spouse or child of an officer of the vessel and such individual is not directly and substantially connected with the operation, navigation, ownership, or business of the vessel itself, the individual is a “passenger” within the meaning of 46 U.S.C. § 55103. Therefore, the individual’s transportation aboard the vessel would be in violation of 46 U.S.C. § 55103. See e.g. HQ H109315 (June 11, 2010) and HQ H057396 (Apr. 14, 2009). HOLDING: The fiancée of the vessel’s Master is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individual on a non-coastwise-qualified vessel would be in violation of 46 U.S.C. § 55103. Sincerely, Lisa L. Burley Supervisory Attorney-Advisor/Chief Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations & Rulings U.S. Customs and Border Protection