Coastwise Trade; 46 U.S.C. 883; Transportation; Barge

HQ 112843 September 23, 1993 VES-3-CO:R:IT:C 112843 DEC CATEGORY: Carriers Mr. Peter A. Greene Thompson, Hine and Flory 1920 N Street, N.W. Washington, D.C. 20036-1601 RE: Coastwise Trade; 46 U.S.C. 883; Transportation; Barge Dear Mr. Greene: This ruling is in response to your August 11, 1993, inquiry concerning the legality of using a barge to transport cement from a vessel to rail cars. FACTS: The Canadian-built non-self-propelled barge METIS is owned by Essroc Canada, Incorporated ("Essroc"). Essroc plans to moor the barge at a cement dock in Green Bay, Wisconsin. The barge, which will remain stationary, will be used to transfer bulk cement from a vessel to rail cars. Since the vessel's capacity exceeds the capacity of the dock, the cement will be stored on the barge until dock capacity becomes available. Essroc has assured Customs that all the cement loaded into the barge will be unloaded without the barge having changed its position. ISSUE: Whether a non-coastwise qualified barge may be used to unload cargo and temporarily store cargo without changing its position within United States territorial waters. LAW AND ANALYSIS: Title 46, United States Code, section 883 prohibits the transportation of merchandise between points in the United States embraced within the coastwise laws, either directly or via a foreign port, or for any part of the transportation, in any other 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. -2- The Customs Service has long held that the use of a non- coastwise qualified vessel to load and unload cargo is not coastwise trade and does not violate 46 U.S.C. 883, provided that any movement of merchandise is effected exclusively by the operation of the crane and not by movement of the vessel, except for movement which is incidental to a lifting operation while it is taking place. However, movement of merchandise while it is suspended from the crane, even between two points within a harbor, which is effected by a movement of the vessel which is neither necessary nor incidental to a lifting operation by the crane would constitute a coastwise transportation of merchandise within the purview of 46 U.S.C. 883. Headquarters Rulings 106351 (Nov. 1, 1983) and 108213 (Mar. 6, 1986). HOLDING: The use of a non-coastwise qualified barge to unload cargo and to temporarily store cargo does not violate 46 U.S.C. 883 so long as no movement of the merchandise is effected through a movement of the barge aside from necessary or incidental movement arising from the lifting operation. Sincerely, Arthur P. Schifflin Chief Carrier Rulings Branch