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 H296942 May 11, 2018 VES-3-02 OT:RR:BSTC:CCR H296942 TNA CATEGORY: Carriers Ms. Ivette Donato, Technical Program Supervisor Technical Operations Group Carnival Cruise Line 3655 NW 87th Avenue Miami, FL 33178 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b). Dear Ms. Donato: This is in response to your correspondence of May 11, 2018, in which you inquire about the coastwise transportation of the 524 individuals mentioned therein aboard the M/S CARNIVAL LEGEND. Our decision follows. FACTS: The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified M/S CARNIVAL LEGEND (“the vessel”). The individuals will embark the vessel in Portland, Oregon on or about May 13, 2018, and will disembark in Seattle, Washington on or about May 15, 2018. These individuals are technicians who will refurbish various areas of the vessel as follows: twenty-two of these individuals will perform refurbish the vessel’s insulation. Thirty-five of these individuals will refurbish the vessel’s data and power cables. Forty-two will refurbish the vessel’s Dry Dock HVAC. Twenty-two will refurbish the vessel’s hotel services. Twenty will refurbish the vessel’s tank services. Six technicians will refurbish the vessel’s engines and two will refurbish its fire detection system. Sixteen of these individuals will perform duct cleaning. Sixty-two of these individuals will refurbish the vessel’s Dry Dock legend. Eighteen will replace the vessel’s special cooling lines for provision of the refrigerating plant. Two of these individuals will inspect the vessel’s motor control center. Eleven of these individuals will refurbish the vessel’s pool area, including its bars and restaurants. Five of these individuals will refurbish the vessel’s bar/theater. Four of these individuals are IT engineers who will supervise six technicians performing an IT upgrade. Four individuals will refurbish the vessel’s exhaust gas cleaning system to remove the sulfur from exhaust gas engines. Nine of these individuals will refurbish the HVAC’s intake painting. Twenty-seven of these individuals will refurbish the vessel’s “Carnival Cruise Lines” logo. Two of the listed individuals will refurbish the vessel’s propulsion motors. Thirty-four of these individuals will engage in various repair and maintenance work throughout the vessel. Two of these individuals will refurbish the vessel’s fire detection system. Three of these individuals will refurbish the engine valves. Seven of these individuals will refurbish the granite work on the vessel’s Lido deck. Thirteen of these individuals will refurbish the vessel’s retail shops. One individual will refurbish the vessel’s steam system. Six of these individuals will refurbish the vessel’s pipe coating. Twenty nine of these individuals will refurbish the engine’s pipe work. One of these individuals will refurbish the vessel’s gift shops. Fourteen of these individuals will refurbish the vessel’s balconies and decks. One of these individuals will refurbish the vessel’s cycloconverter. Fifteen of these individuals will refurbish the syntheteak on the vessel’s Lido decks. Three of these individuals will refurbish the vessel’s lint removal system. One of these individuals will refurbish the vessel’s sliding doors. Seven of these individuals will replace and upgrade the vessel’s oily water separator. Seven of these individuals will refurbish the vessel’s dry dock installation. Two of these individuals will refurbish the vessel’s Dry Dock AV system. Two of these individuals will refurbish the vessel’s photo gallery. Four of these individuals will replace the vessel’s dishwasher. One of these individuals will adjust the vessel’s compass. One of these individuals will supervise the fleet’s housekeeping refurbishment. Eleven of these individuals will refurbish the vessel’s wifi. Three of these individuals will reconfigure the vessel’s casino and arcade. Six of these individuals will refurbish the vessel’s rotating motors/generators/alternators/motor generators. Eighteen of these individuals will refurbish the vessel’s DD. Four of these individuals will refurbish the vessel’s cabin coil. Four of these individuals will refurbish the vessel’s galley hood marvel ins. One of these individuals will inspect the vessel’s boiler. Two of these individuals will refurbish the vessel’s crew lounge. Four of these individuals will perform a cabin automation upgrade due to obsolete features within those cabins. One of these individuals will refurbish the vessel’s ECS/ doglog. Five of these individuals will refurbish the vessel’s main laundry. Two of these individuals will refurbish the vessel’s carpeting or wood floor. Two of these individuals will refurbish the vessel’s dining room. One of these individuals will refurbish the vessel’s cabin ceilings. One of these individuals will refurbish the vessel’s video wall. One of these individuals will supervise the main laundry replacement. One of these individuals will refurbish the vessel’s drives. 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. Section 4.50(b) of the Customs and Border Protection (“CBP”) Regulations provides: 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. Section 4.80(b)(2) of the CBP Regulations provides: The penalty imposed for the unlawful transportation of passengers between coastwise points is $300 for each passenger so transported and landed on or before November 2, 2015, and $762 for each passenger so transported and landed after November 2, 2015 (46 U.S.C. § 55103, as adjusted by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015). In the present case, you state that these individuals are technicians who will refurbish various areas of the vessel as follows: twenty-two of these individuals will perform refurbish the vessel’s insulation. Thirty-five of these individuals will refurbish the vessel’s data and power cables. Forty-two will refurbish the vessel’s Dry Dock HVAC. Twenty-two will refurbish the vessel’s hotel services. Twenty will refurbish the vessel’s tank services. Six technicians will refurbish the vessel’s engines and two will refurbish its fire detection system. Sixteen of these individuals will perform duct cleaning. Sixty-two of these individuals will refurbish the vessel’s Dry Dock legend. Eighteen will replace the vessel’s special cooling lines for provision of the refrigerating plant. Two of these individuals will inspect the vessel’s motor control center. Eleven of these individuals will refurbish the vessel’s pool area, including its bars and restaurants. Five of these individuals will refurbish the vessel’s bar/theater. Four of these individuals are IT engineers who will supervise six technicians performing an IT upgrade. Four individuals will refurbish the vessel’s exhaust gas cleaning system to remove the sulfur from exhaust gas engines. Nine of these individuals will refurbish the HVAC’s intake painting. Twenty-seven of these individuals will refurbish the vessel’s “Carnival Cruise Lines” logo. Two of the listed individuals will refurbish the vessel’s propulsion motors. Thirty-four of these individuals will engage in various repair and maintenance work throughout the vessel. Two of these individuals will refurbish the vessel’s fire detection system. Three of these individuals will refurbish the engine valves. Seven of these individuals will refurbish the granite work on the vessel’s Lido deck. Thirteen of these individuals will refurbish the vessel’s retail shops. One individual will refurbish the vessel’s steam system. Six of these individuals will refurbish the vessel’s pipe coating. Twenty nine of these individuals will refurbish the engine’s pipe work. One of these individuals will refurbish the vessel’s gift shops. Fourteen of these individuals will refurbish the vessel’s balconies and decks. One of these individuals will refurbish the vessel’s cycloconverter. Fifteen of these individuals will refurbish the syntheteak on the vessel’s Lido decks. Three of these individuals will refurbish the vessel’s lint removal system. One of these individuals will refurbish the vessel’s sliding doors. Seven of these individuals will replace and upgrade the vessel’s oily water separator. Seven of these individuals will refurbish the vessel’s dry dock installation. Two of these individuals will refurbish the vessel’s Dry Dock AV system. Two of these individuals will refurbish the vessel’s photo gallery. Four of these individuals will replace the vessel’s dishwasher. One of these individuals will adjust the vessel’s compass. One of these individuals will supervise the fleet’s housekeeping refurbishment. Eleven of these individuals will refurbish the vessel’s wifi. Three of these individuals will reconfigure the vessel’s casino and arcade. Six of these individuals will refurbish the vessel’s rotating motors/generators/alternators/motor generators. Eighteen of these individuals will refurbish the vessel’s DD. Four of these individuals will refurbish the vessel’s cabin coil. Four of these individuals will refurbish the vessel’s galley hood marvel ins. One of these individuals will inspect the vessel’s boiler. Two of these individuals will refurbish the vessel’s crew lounge. Four of these individuals will perform a cabin automation upgrade due to obsolete features within those cabins. One of these individuals will refurbish the vessel’s ECS/ doglog. Five of these individuals will refurbish the vessel’s main laundry. Two of these individuals will refurbish the vessel’s carpeting or wood floor. Two of these individuals will refurbish the vessel’s dining room. One of these individuals will refurbish the vessel’s cabin ceilings. One of these individuals will refurbish the vessel’s video wall. One of these individuals will supervise the main laundry replacement. One of these individuals will refurbish the vessel’s drives. . 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