46 U.S.C. § 55103 Passenger Vessel Services Act

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H326543 August 17, 2022 OT:RR:BSTC:CCR H326543 HKC CATEGORY: Carriers Mr. Jorge Romero K&L Gates LLP 1601 K Street, N.W. Washington, DC 20006 RE: 46 U.S.C. § 55103 Passenger Vessel Services Act Dear Mr. Romero, This is in response to your correspondence, dated July 15, 2022, requesting an opinion as to whether the proposed transportation of three guest speakers aboard the M/V VIKING STAR, a non-coastwise qualified vessel, on two back-to-back voyages, the first one departing New York City, NY, and ending in Montreal, Canada, and the second one departing Montreal and terminating at Ft. Lauderdale, FL, would violate the coastwise laws of the United States. Our decision follows. FACTS: The following facts are from your correspondence dated July 15, 2022. Viking Cruise Oceans Ltd. (Viking Cruise) operates the M/V VIKING STAR, a non-coastwise-qualified vessel. Viking Cruise proposes to embark three guest speakers hired for the purposes of entertaining cruise passengers aboard the VIKING STAR on September 18, 2022, at New York, NY. The voyage would end in Montreal, Canada on September 30, 2022. The VIKING STAR will then continue on a second voyage that originates at Montreal, Canada, on September 30, 2022, and terminates at Ft. Lauderdale, FL, on October 14, 2022, where the guest speakers would disembark. Accordingly, the subject individuals would be transported aboard the VIKING STAR from New York, New York, through Montreal, Canada, to Ft. Lauderdale, Florida. ISSUE: Whether the transportation of the speakers embarking the VIKING STAR in New York City on September 18, 2022, and disembarking in Ft. Lauderdale, FL, on October 14, 2022, would violate the coastwise laws, including 46 U.S.C. § 55103. LAW AND ANALYSIS: Pursuant to 46 U.S.C. § 55103 (“the Passenger Vessel Services Act” or PVSA), 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 is both (1) wholly owned by U.S. citizens and (2) has a certificate of documentation with a coastwise endorsement. The coastwise laws apply to the United States, including U.S. island territories and possessions, except for American Samoa, the Northern Mariana Islands, and the Virgin Islands. A non-coastwise vessel transporting passengers embarking from a U.S. port must disembark them at the same U.S. port in order to avoid a violation of 46 U.S.C. § 55103. A passenger is defined under 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b) as “any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.” 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 matter, you state the three individuals are speakers hired by Viking Cruise for the purposes of entertaining passengers aboard the VIKING STAR. 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. Prior Headquarters rulings have held individuals transported on cruise vessels for the purpose of providing entertainment as guest speakers are not passengers. In the present matter, 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 subject individuals 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 is not in violation of 46 U.S.C. § 55103. Sincerely, W. Richmond Beevers Chief, Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations and Rulings U.S. Customs and Border Protection