Coastwise Trade; Sailing School; 46 U.S.C. App. 289

HQ 113204 September 6, 1994 VES-3-CO:R:IT:C 113204 GEV CATEGORY: Carriers David W. Hiott Fleet Captain Las Carabelas 1900 North Chaparral Corpus Christi, Texas 78401 RE: Coastwise Trade; Sailing School; 46 U.S.C. App. 289 Dear Mr. Hiott: This is in response to your letter dated August 13, 1994, requesting a ruling regarding the charging of a tuition fee for crew training classes. Our ruling on this matter is set forth below. FACTS: Las Carabelas Columbus Fleet Association (the "Association") of Corpus Christi, Texas has a lease agreement with Spain for the operation of the Spanish-flagged vessels NINA, PINTA & SANTA MARIA for a term of fifty (50) years. The vessels are owned by the government of Spain and have been operated by the Association for crew training classes. These classes have, heretofore, been offered free of charge. The Association now proposes to charge a tuition fee for the aforementioned classes. ISSUE: Whether the charging of a tuition fee for crew training classes aboard a foreign-flagged vessel constitutes a use in the coastwise trade in violation of 46 U.S.C. App. 289. LAW AND ANALYSIS: Title 46, United States Code Appendix, 289 (the passenger coastwise law), as interpreted by the Customs Service, prohibits the transportation of passengers between points embraced within the coastwise laws, either directly or by way of a foreign port, in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. Pursuant to 4.50(b), Customs Regulations (19 CFR 4.50(b)), the word - 2 - "passenger," for purposes of this provision, is defined as "...any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business." In our interpretation of 289, we have long-held that a person transported on a vessel as a student in courses such as oceanography or sailing and seamanship, when the presence of that person is required on board the vessel as a part of his or her course or training, is not a passenger, for purposes of the coastwise laws. This is so regardless of whether a fee is charged for the aforementioned instruction. Accordingly, the use of the subject vessels by the Association as described above is not a use in the coastwise trade in violation of 46 U.S.C. App. 289. HOLDING: The use of a vessel for purposes of offering instruction in navigation and seamanship, regardless of whether a tuition fee is charged for such instruction, is not considered a use in the coastwise trade in violation of 46 U.S.C. App. 289. Sincerely, Arthur P. Schifflin Chief