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 H264494 May 12, 2015 VES-3-02 OT:RR:BSTC:CCR HQ H264494 DAC CATEGORY: Carriers Yasuko Sakamoto Asuka Cruise The Landmark Tower Yokohama 2-1 Minatomirai 2 Chome Nishi Ku Yokohama 220 8147 Japan RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b). Dear Mr. Sakamoto: This is in response to your correspondence of May 7, 2015, in which you inquire about the coastwise transportation of the three individuals mentioned therein aboard the M/S ASUKA II. Our decision follows. FACTS The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified M/S ASUKA II (“the vessel”). The individuals will embark the vessel in San Francisco, California on or about June 27, 2015 and will disembark in Juneau, Alaska on or about July 3, 2015. The individuals are journalists preparing an article and photographs for a magazine on the subject vessel while the vessel is under way. ISSUE Whether the individuals described in the FACTS section 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 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) 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 individuals are journalists preparing an article and photographs for a magazine on the subject vessel while the vessel is under way. 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 individual to not be considered as a passenger under these provisions of law. You state that the subject individuals are journalists preparing a magazine article. In HQ H067035, (July 2, 2009), CBP held that journalists operating in a substantially similar capacity would be passengers within the meaning of 46 U.S.C. § 55103 and were required to disembark at the exact same point of embarkation. Similarly, in this instance you propose to transport journalists preparing a magazine article, however, you propose to have them disembark at a different point than the point of embarkation. To the extent that the subject individuals would not have been engaged in any shipboard activities while traveling on the foreign vessel between coastwise ports that would be “directly and substantially” related to the operation, navigation, ownership, or business of the vessel itself, such individuals would be considered passengers within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of the subject individuals would be in violation of 46 U.S.C. § 55103. See also HQ 116668 (July 25, 2006). HOLDING 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). Therefore, the coastwise transportation of such individuals would be in violation of 46 U.S.C. § 55103. Sincerely, Lisa L. Burley Chief/Supervisory Attorney-Advisor Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations and Rulings