Coastwise Transportation; 46 U.S.C. §§ 55103 and 55104

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H257875 October 6, 2014 VES-3-02-OT:RR:BSTC:CCR HQ H257875 WRB CATEGORY: Carriers Mr. Bryan Slaughter Gram Car Carriers AS Fjaerevn. 191 Grimstad, Norway 4885 RE: Coastwise Transportation; 46 U.S.C. §§ 55103 and 55104 Dear Mr. Slaughter: This letter is in response to your correspondence of October 3, 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 VIKING DRIVE (the “vessel”), from Newark, New Jersey, to San Juan, Puerto Rico, from October 8, 2014, through October 14, 2014. ISSUE: Whether the proposed itinerary is in violation of 46 U.S.C. § 55103? 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. Title 46 United States Code § 55104(b) provides, “Except as otherwise provided in this section, a vessel not qualified to engage in the coastwise trade may transport passengers between a port in Puerto Rico and another port in the United States.” Accordingly, the subject vessel, as a non-coastwise-qualified vessel, may transport passengers between Puerto Rico and other ports in the United States. Therefore, the transportation of an individual on the subject vessel from Fort Lauderdale, Florida, to San Juan, Puerto Rico, is not a violation of the coastwise laws pursuant to 46 U.S.C. § 55104. HOLDING: The proposed itinerary described above, in which a passenger embarks the vessel at Newark, New Jersey, and disembarks at San Juan, Puerto Rico, is not a violation of the coastwise laws pursuant to 46 U.S.C. § 55104. 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