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 H301608 November 2, 2018 VES-3-02 OT:RR:BSTC:CCR HQ H301608 SWM CATEGORY: Carriers Ms. Ivette Donado Carnival Cruise Line 3655 NW 87th Avenue MSTO601S Miami, Florida 33178 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b). Dear Ms. Donado: This is in response to your correspondence of October 29, 2018, in which you inquire about the coastwise transportation of approximately one thousand thirty-three (1,033) individuals mentioned therein aboard the M/S CARNIVAL INSPIRATION. Our decision follows. FACTS Carnival Cruise Line will be placing the M/S CARNIVAL INSPIRATION (“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 Long Beach, California, departing on or about November 2, 2018, to Portland, Oregon, arriving on or about November 4, 2018. Additional contractors and personnel will embark the vessel throughout the dry-docking schedule in Portland, Oregon. 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  November 2, 2018 868 Long Beach, California  November 5, 2018 115 Portland, Oregon  November 6, 2018 4 Portland, Oregon  November 7, 2018 6 Portland, Oregon  November 8, 2018 16 Portland, Oregon  November 9, 2018 6 Portland, Oregon  November 10, 2018 6 Portland, Oregon  November 11, 2018 2 Portland, Oregon  November 12, 2018 8 Portland, Oregon  November 13, 2018 2 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 November 13, 2018, and returns to Long Beach, California on or about November 16, 2018. 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  November 5, 2018 3 Portland, Oregon  November 6, 2018 2 Portland, Oregon  November 8, 2018 1 Portland, Oregon  November 9, 2018 2 Portland, Oregon  November 10, 2018 7 Portland, Oregon  November 12, 2018 17 Portland, Oregon  November 13, 2018 184 Portland, Oregon  November 16, 2018 800 Long Beach, California  November 17, 2018 13 Long Beach, California  November 18, 2018 2 Long Beach, California  November 23, 2018 2 Long Beach, 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 guest accommodations, maintenance on accessibility features, deck machinery, steering gears, phone exchanges, upgrades to the HVAC system, pool maintenance, electrical work, tank maintenance, tile and stone work, crew and team dining area maintenance, informational technology infrastructure projects, gray and fresh water work, insulation replacement, main galley duct replacements, public bathroom refurbishment, steel structural repairs, upholstery replacement, spa and salon work, and closed-circuit television system upgrades 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 individual 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 guest accommodations, maintenance on accessibility features, deck machinery, steering gears, phone exchanges, upgrades to the HVAC system, pool maintenance, electrical work, tank maintenance, tile and stone work, crew and team dining area maintenance, informational technology infrastructure projects, gray and fresh water work, insulation replacement, main galley duct replacements, public bathroom refurbishment, steel structural repairs, upholstery replacement, spa and salon work, and closed-circuit television system upgrades 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