Coastwise Trade; Passengers; 46 U.S.C. App. 289; M/V COLUMBUS CARAVELLE

HQ 112400 August 14, 1992 VES-3-06-CO:R:IT:C 112400 MLR CATEGORY: Carriers Captain Mato Bozovic Odessa America Cruise Co. 170 Old Country Road, Suite 608 Mineola, New York 11501 RE: Coastwise Trade; Passengers; 46 U.S.C. App. 289; M/V COLUMBUS CARAVELLE Dear Capt. Bozovic: Reference is made to your facsimile dated August 6, 1992, requesting a ruling whether a proposed cruise itinerary complies with 46 U.S.C. App. 289. FACTS: The proposed cruise itinerary for the M/V COLUMBUS CARAVELLE, which we assume is a non-coastwise-qualified vessel, is as follows: Cruise Dates: September 22 - October 4, 1992 PORT ARRIVAL DEPARTURE REMARKS Boston/Massachusetts Tues. 9/22 Embark 8:00 PM Passengers Providence/Rhode Island Wed. 9/23 Wed. 9/23 8:00 AM 7:00 PM New York/USA Thu. 9/24 Fri. 9/25 8:00 AM 12:00 Noon Philadelphia/ Sat. 9/26 Sat. 9/26 Pennsylvania 08:00 AM 12:00 Midnight Night Passage through Chesapeake - Delaware Channel Baltimore/Maryland Sun. 9/27 Sun. 9/27 8:00 AM 6:00 PM Charleston/ Tue. 9/29 Tue. 9/29 South Carolina 8:00 AM 6:00 PM Jacksonville/Florida Wed. 9/30 Wed. 9/30 8:00 AM 8:00 PM Port Canaveral/Florida Thu. 10/1 Thu. 10/1 8:00 AM 7:00 PM Miami/Florida Fri. 10/2 Fri. 10/2 8:00 AM 11:30 PM Freeport/Bahamas Sat. 10/3 Sat. 10/3 8:00 AM 6:00 PM Nassau/Bahamas Sun. 10/4 Disembark 8:00 AM Passengers ISSUE: Whether the transportation of passengers aboard a non- coastwise-qualified vessel on the itinerary described above constitutes a violation of 46 U.S.C. App. 289. LAW AND ANALYSIS: Title 46, United States Code Appendix, section 883 (the merchandise coastwise law often called the "Jones Act") prohibits the transportation of merchandise between United States coastwise points, either directly or via a foreign port, or for any part of the transportation, in any vessel other than a vessel built in and documented under the laws of the United States and owned by persons who are citizens of the United States. In interpreting section 883, Customs has ruled that a point in United States territorial waters is a point in the United States embraced within the coastwise laws. The territorial waters of the United States consist of the territorial sea, defined as the belt, 3 nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline, in cases where the baseline and the coastline differ. Title 46, United States Code Appendix, section 289 (46 U.S.C. App. 289, the passenger coastwise law), prohibits the transportation of passengers between points embraced within the coastwise laws of the United States, either directly or by way of a foreign port, in a non-coastwise-qualified vessel (i.e., any vessel not built in and documented under the laws of the United States and owned by persons who are citizens of the United States). For purposes of section 289, "passenger" is defined as "...any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business." 19 CFR 4.50(b). The applicable Customs Regulations promulgated pursuant to 46 U.S.C. App. 289 are set forth in title 19, Code of Federal Regulations, section 4.80a (19 CFR 4.80a). Section 4.80a(b)(2), Customs Regulations {19 CFR 4.80a(b)(2)}, provides that a coastwise violation occurs if a passenger is on a voyage to one or more coastwise points and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks at a coastwise port other than the port of embarkation. Section 4.80a(b)(3), Customs Regulations {19 CFR 4.80a(b)(3)}, provides that no coastwise violation occurs if a passenger is on a voyage to one or more coastwise ports and a distant foreign port or ports (whether or not the voyage includes a nearby foreign port or ports) and the passenger disembarks at a coastwise port provided the passenger has proceeded with the vessel to a distant foreign port. (See also 19 CFR 4.80a(a)(1) and (4) for the definitions of the terms "coastwise port", "embark", and "disembark," as those terms are used in the regulation). In regard to the proposed cruise itinerary, the transportation of passengers from Boston, Massachusetts, to Nassau, Bahamas, would not constitute a violation of the passenger coastwise law because the passengers are not making a voyage from one coastwise point to another coastwise point (i.e., the passengers will rather embark at a coastwise point and disembark in a foreign port). HOLDING: The transportation of passengers aboard a non-coastwise- qualified vessel on the itinerary described above does not constitute a violation of 46 U.S.C. App. 289. Sincerely, B. James Fritz Chief Carrier Rulings Branch