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 H281365 November 29, 2016 VES-3-02-OT:RR:BSTC:CCR HQ H281365 SWM CATEGORY: Carriers Ms. Alice Pooley Carnival UK Carnival House 100 Harbour Parade Southampton SO15 1ST United Kingdom RE: Coastwise Transportation of Passengers; 46 U.S.C. § 55103; 19 C.F.R. §§ 4.50(b) and 4.80a. Dear Ms. Pooley: This is in response to your correspondence of November 25, 2016, in which you inquire about the transportation of two individuals aboard the M/V AZURA. Our ruling is set forth below. FACTS The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified M/V AZURA (“the vessel”). The individuals will embark the vessel in New Orleans, Louisiana on or about December 23, 2016, and will disembark in San Juan, Puerto Rico on or about December 31, 2016. ISSUE Whether the proposed transportation of the individuals described in the FACTS section 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 transportation of the individuals on the subject vessel from San Juan, Puerto Rico to Fort Lauderdale, Florida is not a violation of the coastwise laws pursuant to 46 U.S.C. § 55104(b) and 19 C.F.R. § 4.80a(c). HOLDING The proposed transportation of the individuals described in the FACTS section 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 Trade, Regulations and Rulings