Coastwise Transportation of Passengers; 46 U.S.C. § 55103; 19 C.F.R. §§ 4.50(b) and 4.80.

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H303748 May 2, 2019 VES-3-02-OT:RR:BSTC:CCR HQ H303748 TNA CATEGORY: Carriers Mr. Raymond Peter Zambuto 45 Brimstone Way Ashland, MA 01721 RE: Coastwise Transportation of Passengers; 46 U.S.C. § 55103; 19 C.F.R. §§ 4.50(b) and 4.80. Dear Mr. Zambuto: This letter is in response to your April 15, 2019 ruling request regarding your transportation aboard the M/S NORWEGIAN GEM. Our ruling is set forth below. FACTS You will embark the M/S NORWEGIAN GEM in Boston, Massachusetts on June 21, 2019, which has the following cruise itinerary: 06/21 Boston, Massachusetts 06/22 At Sea 06/23-25 Bermuda 06/26 At Sea 06/27 At Sea 06/28 Boston, Massachusetts- end of cruise. Instead of disembarking in Boston, you wish to disembark in Bermuda and return to the United States by plane. ISSUE Whether the proposed transportation 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. 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 $798 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). Section 4.80a of the CBP Regulations provides: (a) For the purposes of this section, the following terms will have the meaning set forth below: (4) Embark means a passenger boarding a vessel for the duration of a specific voyage and disembark means a passenger leaving a vessel at the conclusion of a specific voyage. The terms embark and disembark are 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. You propose to embark in Boston, Massachusetts and disembark in Bermuda. First, the individual is considered a “passenger” for purposes of the PVSA, as he is embarking as a passenger on the cruise and is not connected with the business or operation of the vessel itself. Second, the port of disembarkation, Bermuda, is a foreign port. The PVSA applies to the transportation of passengers “between ports or places in the United States.” Therefore, the proposed itinerary would not violate the coastwise laws pursuant to 46 U.S.C. § 55103 and 19 C.F.R. § 4.80(a) because it does not involve the transportation of a passenger between two coastwise points in the United States. This conclusion is consistent with prior CBP rulings. HQ H019350 (Nov. 8, 2007) (holding that one individual embarking in Canada and disembarking in the United States does not violate section 55103 because it does not involve transportation between two coastwise points.) HOLDING The proposed transportation in which a passenger embarks in Boston, Massachusetts, and disembarks in Bermuda, 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