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 H281410 December 2, 2016 VES-3-02 OT:RR:BSTC:CCR HQ H281410 SWM CATEGORY: Carriers Ms. Roni Morales Princess Cruise Lines, Ltd. 24305 Town Center Drive Santa Clarita, California 91355 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b). Dear Ms. Morales: This is in response to your correspondence of November 28, 2016, in which you inquire about the coastwise transportation of approximately one thousand twentynine (1,029) individuals mentioned therein aboard the M/V GRAND PRINCESS. Our decision follows. FACTS Princess Cruise Lines, Ltd., will be placing the M/V GRAND PRINCESS (“the vessel”), a non-coastwise-qualified vessel, out of service and undertaking a drydocking for scheduled renovations and repairs. In advance of and during the drydocking schedule, various contractors and personnel will embark the subject vessel, along with their tools and equipment, and work onboard the vessel as it travels from San Francisco, California departing on or about December 8, 2016, to Portland, Oregon, arriving on or about December 10, 2016. The date of embarkation, approximate number of individuals to embark the vessel on each date, and the port of embarkation, are set forth below: Date Number of Individuals Port of Embarkation  December 6, 2016 1 San Francisco, California  December 7, 2016 4 San Francisco, California  December 8, 2016 712 San Francisco, California  December 10, 2016 233 Portland, Oregon  December 11, 2016 14 Portland, Oregon  December 12, 2016 19 Portland, Oregon  December 13, 2016 7 Portland, Oregon  December 14, 2016 19 Portland, Oregon  December 15, 2016 6 Portland, Oregon  December 16, 2016 2 Portland, Oregon  December 17, 2016 12 Portland, Oregon   During the dry-docking schedule, the contractors and personnel who embarked the vessel will disembark the vessel upon finishing their work aboard the vessel. Some will disembark in Portland, Oregon, and others will continue working aboard the vessel when it leaves Portland, Oregon on or about December 18, 2016, and returns to San Francisco, California on or about December 20, 2016. The scheduled date, number of individuals to disembark on each date, and port of disembarkation are set forth below. Date Number of Individuals Port of Disembarkation  December 11, 2016 11 Portland, Oregon  December 12, 2016 5 Portland, Oregon  December 14, 2016 6 Portland, Oregon  December 15, 2016 15 Portland, Oregon  December 16, 2016 57 Portland, Oregon  December 17, 2016 24 Portland, Oregon  December 18, 2016 248 Portland, Oregon  December 20, 2016 636 San Francisco, California  December 30, 2016 10 San Francisco, California   It is stated that during the course of the above-described transportation, these contractors and personnel will be actively engaged in performing work/services aboard the vessel in furtherance of the scheduled repairs and renovations, which include: Renovations of the vessel’s restaurant, ice cream bar, gym and fitness center, youth centers and crew recreation areas; cosmetic enhancements of the boutiques; installation of a new “luxury bed” program; balcony door frame replacements; potable water pipe replacement; general steel repairs; safety system health checks and upgrades; exhaust gas cleaning system installation; HVAC chiller unit replacement; and various information technology projects involving upgrading the primary data center, outfitting a second data center, and running new data cable lines throughout the vessel. In addition, supervisors, managers, project managers, and logistical support personnel will be aboard the vessel to coordinate the foregoing activities. 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 will prepare the vessel for drydocking and complete renovations of the vessel’s restaurant, ice cream bar, gym and fitness center, youth centers and crew recreation areas; cosmetic enhancements of the boutiques; install a new “luxury bed” program; install balcony door frame replacements; replace potable water pipes; make general steel repairs; check safety system health and upgrades; install an exhaust gas cleaning system; replace the HVAC chiller unit; and complete various information technology projects involving upgrading the primary data center, outfitting a second data center, and running new data cable lines throughout the vessel. In accordance with previous Headquarters rulings, workmen, technicians, or observers transported by vessel between ports of the United States are not classified as “passengers”, within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b), if they are required to be onboard to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are onboard because of a necessary vessel ownership or business interest during the voyage. HQ 101699 (Nov. 5, 1975); see HQ 116721 (Sept. 25, 2006)(quoting HQ 101699). Furthermore, 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 individuals to not be considered as passengers under these provisions of law.  In the present case, we find that the proposed activities described in your request would be directly and substantially connected to the operation, navigation, ownership, or business of the vessel and we therefore determine that the subject individuals are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of the individuals in question would not be in violation of 46 U.S.C. § 55103. HOLDING The individuals described in the FACTS section above are not “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 not 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 Trade, Regulations and Rulings