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 H278277 August 11, 2016 VES-3-02-OT:RR:BSTC:CCR HQ H278277 PF CATEGORY: Carriers Regina Rojas Hamburg Sud 3225 E. Marginal Way S Seattle, Washington 98134 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Ms. Rojas: This is in response to your correspondence of August 10, 2016, in which you inquire about the coastwise transportation of the one individual mentioned therein aboard the M/V CAP JACKSON. Our decision follows. FACTS: The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified M/V CAP JACKSON (“the vessel”). The individual will embark the vessel in Los Angeles, California on or about August 26, 2016 and will disembark in Seattle, Washington on or about August 31, 2016. The individual is a vessel planner and will observe the vessel's navigation process and cargo operations. 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. 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. The individual is a vessel planner and will be carried onboard for the purpose of observing the vessel's navigation process and cargo operations. In HQ H008510 (Mar. 22, 2007) and HQ H008513 (Mar. 23, 2007), we held that shipping agency trainees transported aboard a vessel “to observ[e] daily life on a vessel and gain better insight about what their colleagues [that] work on a vessel actually do” or “observe what goes on during a vessel’s voyage” were passengers within the meaning of 46 U.S.C. § 55103 insofar as the trainees were not “directly and substantially” connected with the operation, navigation, ownership or business of the vessel itself. See also HQ H026209 (Apr. 22, 2008) (holding that shipping agency’s claims risk manager transported to “observe the crew preparation for port arrival and pre-cargo operation procedures, observing those actions from the vessel’s view” was a passenger); HQ H013701 (July 10, 2007) (holding that customer service auditors and sales representatives transported to familiarize themselves with shipboard operations were passengers); HQ H013452 (June 29, 2007) (holding that transporting a stevedore for training purposes was not “directly and substantially” related to the operation or business of the vessel itself); HQ H010696 (May 9, 2007) and HQ H010662 (May 9, 2007) (holding that shipping agency’s human resources manager and ship broker’s trainee, respectively, transported coastwise “to observe shipboard operations” were passengers). Similarly, in the present case, you propose to transport an individual so that she can observe the vessel's navigation process and cargo operations. Although familiarizing an individual with vessel operations may foster the business of the shipping line, it does not connect the individual directly and substantially with the operation, navigation, or business of the vessel itself. Thus, to the extent that the subject individual will not be 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, or business of the vessel itself, such individual would be considered a passenger within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). In the present case, we find that the proposed activities described in your request would not be directly and substantially connected with the operation, navigation, or business of the vessel and we therefore determine that the subject individual is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Accordingly, the coastwise transportation of the individual in question would be in violation of 46 U.S.C. § 55103. HOLDING: The subject individual is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Therefore, the coastwise transportation of such individual is 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 Trade, Regulations & Rulings U.S. Customs and Border Protection