Coastwise Transportation of Passengers; 46 U.S.C. § 55103; 19 C.F.R. §§ 4.50(b) and 4.80a.

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H272773 March 10, 2016 VES-3-02-OT:RR:BSTC:CCR HQ H272773 PF CATEGORY: Carriers Ms. Jennifer Cubbage Walt Disney Parks & Resorts U.S., Inc. 12450 State Road 535 Lake Buena Vista, FL 32830 RE: Coastwise Transportation of Passengers; 46 U.S.C. § 55103; 19 C.F.R. §§ 4.50(b) and 4.80a. Dear Ms. Cubbage: This letter is in response to your correspondence of February 2, 2016, with regard to a proposed cruise itinerary for the DISNEY MAGIC. Specifically, you inquire as to a proposed new itinerary in which passengers would embark the DISNEY MAGIC at Miami, Florida, and disembark at San Juan, Puerto Rico. Our ruling is set forth below. FACTS The proposed itinerary is a five-day voyage on the DISNEY MAGIC departing from Miami, Florida, and terminating at San Juan, Puerto Rico. This itinerary would also include stops at Castaway Cay, Bahamas, and Nassau, Bahamas. You present the following proposed schedule for our consideration: Proposed Miami-San Juan Itinerary Wednesday Miami, Florida (embark) Thursday Castaway Cay, Bahamas Friday Nassau, Bahamas Saturday At Sea Sunday San Juan, Puerto Rico (disembark) ISSUE Whether the proposed cruise itinerary to transport passengers aboard a non-coastwise-qualified vessel would violate 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 at 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. Pursuant to 46 U.S.C. § 55104(b), “[e]xcept 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.” The regulations promulgated under the authority of § 55104(b) further provide: An exception to the prohibition in this section is the transportation of passengers between ports in Puerto Rico and other ports in the U.S. on passenger vessels not qualified to engage in the coastwise trade. Such transportation is permitted until there is a finding under 46 U.S.C. 55104 that a qualified U.S.-flag passenger vessel is available for such service. See also HQ H242538 (Jun. 20, 2013); HQ H186131 (Sept. 28, 2011); HQ H248285 (Dec. 18, 2013). To date, no qualified U.S.-flag passenger vessel service between ports in Puerto Rico and other ports in the U.S. exists. Accordingly, non-coastwise qualified vessels may transport passengers between Puerto Rico and other ports in the U.S. Therefore, the proposed itinerary, in which passengers embark at Miami, Florida, and disembark at San Juan, Puerto Rico, is not a violation of the coastwise laws pursuant to 46 U.S.C. § 55104(b) and 19 C.F.R. § 4.80a(c). Please note that pursuant to 19 C.F.R. § 4.80a(a)(4) the term “disembark” is “not applicable to a passenger going ashore temporarily at a coastwise port and reboards the vessel and departs with it on sailing from the port.” Accordingly, should passengers transported to Puerto Rico under the subject itinerary reboard the DISNEY MAGIC and disembark at a coastwise point other than Puerto Rico, regardless if they are using different tickets, that transportation should be in violation of 46 U.S.C. § 55103. HOLDING: The proposed cruise itinerary in which passengers embark at Miami, Florida, and disembark at San Juan, Puerto Rico, does not constitute an engagement in coastwise trade 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