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 H287483 June 29, 2017 VES-3-02-OT:RR:BSTC:CCR HQ H287483 ASZ CATEGORY: Carriers Ms. Roni Morales Princess Cruises 24305 Town Center Drive Santa Clarita, California 91355 RE: Coastwise Transportation of Passengers; 46 U.S.C. § 55103; 19 C.F.R. §§ 4.50(b) and 4.80a. Dear Ms. Morales: This letter is in response to your June 15, 2017 ruling request and June 19, 2017 email to this office with regard to two proposed cruise itineraries for the REGAL PRINCESS. Our ruling is set forth below. FACTS Princess Cruise Lines, Ltd. currently offers the following 11-night itinerary on the REGAL PRINCESS to commence on December 17, 2017: 12/17 Fort Lauderdale, Florida (embark) 12/18 Princess Cays, Bahamas 12/19 At Sea 12/20 San Juan, Puerto Rico 12/21 St. Thomas, Virgin Islands 12/22 St. Maarten 12/23 St. Lucia 12/24 Barbados 12/25 Antigua 12/26 At Sea 12/27 At Sea 12/28 Fort Lauderdale, Florida (disembark) You propose to sell two shorter segments from the above 11-night itinerary. Specifically, you present the following 3-night and 8-night itineraries for our consideration: Proposed 3-night Fort Lauderdale-San Juan Itinerary 12/17 Fort Lauderdale, Florida (embark) 12/18 Princess Cays, Bahamas 12/19 At Sea 12/20 San Juan, Puerto Rico (disembark) Proposed 8-night San Juan-Fort Lauderdale Itinerary 12/20 San Juan, Puerto Rico (embark) 12/21 St. Thomas, Virgin Islands 12/22 St. Maarten 12/23 St. Lucia 12/24 Barbados 12/25 Antigua 12/26 At Sea 12/27 At Sea 12/28 Fort Lauderdale, Florida (disembark) With regard to the 3-night itinerary, you state that the passengers will be transported on the REGAL PRINCESS from Fort Lauderdale, Florida to San Juan, Puerto Rico only. When they reach San Juan, Puerto Rico they will disembark the vessel and fly or drive to their next destination. Similarly, you state that for the 8-night itinerary, the guests would fly or drive to San Juan, Puerto Rico to embark the REGAL PRINCESS and journey onboard to Fort Lauderdale, Florida where they will disembark. ISSUE Whether the proposed 3-night cruise itinerary to transport passengers aboard a non-coastwise-qualified vessel would violate 46 U.S.C. § 55103? Whether the proposed 8-night 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). Issue 1: 3-night Fort Lauderdale-San Juan Itinerary Your company proposes to embark passengers in Fort Lauderdale, Florida and disembark them in San Juan, Puerto Rico. 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." 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 in Fort Lauderdale, Florida and disembark in 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 who 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 REGAL PRINCESS and disembark at a coastwise point other than Fort Lauderdale, regardless if they are using different tickets, that transportation would be in violation of 46 U.S.C. § 55103. Issue 2: 8-night San Juan-Fort Lauderdale Itinerary Your company proposes to embark passengers in San Juan, Puerto Rico and disembark them in Fort Lauderdale, Florida. 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." 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 in San Juan, Puerto Rico and disembark in 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). Please note that pursuant to 19 C.F.R. § 4.80a(a)(4) the term “embark” is “not applicable to a passenger going ashore temporarily at a coastwise port who reboards the vessel and departs with it on sailing from the port.” Accordingly, should passengers transported to Puerto Rico from another coastwise point aboard the REGAL PRINCESS on another itinerary, regardless if they are using different tickets, disembark in Fort Lauderdale or another coastwise point, that transportation would be in violation 46 U.S.C. § 55103. HOLDING The proposed 3-night cruise itinerary, in which passengers embark in Fort Lauderdale, Florida and disembark in San Juan, Puerto Rico, does not constitute an engagement in coastwise trade in violation of 46 U.S.C. § 55103. The proposed 8-night cruise itinerary, in which passengers embark in San Juan, Puerto Rico and disembark in Fort Lauderdale, Florida, 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