Coastwise Trade; Cable-Laying; 46 U.S.C. app. 883.

HQ 112866 August 31, 1993 VES-3-16-CO:R:IT:C 112866 DEC CATEGORY: Carriers Mr. Earl P. Verrett Conventional Manager P.O. Drawer 51789 Aries Marine Corporation Lafayette, Louisiana 70505 RE: Coastwise Trade; Cable-Laying; 46 U.S.C. app. 883. Dear Mr. Verrett: Reference is made to your facsimile transmittal of August 25, 1993, in which you inquired as to the legality of utilizing a foreign-built vessel in your cable laying operations off the coastal waters of Alaska. FACTS: The Aries Marine Corporation operates the Panamanian-flag M/V RAMBO. The operators of the M/V RAMBO wish to use the vessel in a fiber optic cable laying operation at the United States Navy's Seafac facility near Ketchikan, Alaska. In support of its request, Aries Marine states that the M/V RAMBO will engage only in the cable laying operation and will carry no cargo or passengers. The vessel will sail from Seattle, Washington to the work site, complete its operations, and return to Seattle. Aries Marine is requesting comment as to whether this proposed operation would violate United States coastwise laws. ISSUE: Whether a non-coastwise-qualified vessel may engage in cable- laying operations in U.S. waters without violating 46 U.S.C. app. 883. LAW AND ANALYSIS: Title 46, United States Code, appendix, section 883 (46 U.S.C. app. 883), the coastwise merchandise statute (often called the "Jones Act"), provides in part, that no merchandise shall be transported between points in the United States embraced within the -2- coastwise laws, 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 (i.e. a coastwise- qualified vessel). Points embraced within the coastwise laws include all points within the territorial waters of the United States, including points within a harbor. The coastwise laws generally apply to points in the territorial sea, 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, in cases where the baseline and the coastline differ. Customs has long held that the use of a vessel solely in laying pipe or cable is not considered a use in the coastwise trade of the United States, even when the pipe or cable is laid between two points in the United States embraced within the coastwise laws. C.S.D. 79-321. Accordingly, the use of a foreign-flag vessel to lay pipe or cable in a coastwise location would not violate 46 U.S.C. app. 883. HOLDING: In accordance with the Law and Analysis section of this ruling, the use of a non-coastwise-qualified vessel to engage in the laying of fiber optic cable is permissible under the coastwise laws. Sincerely, Acting Chief