tStaten Island, New York 10305

HQ H015506 September 24, 2007 VES-3-02:RR:BSTC:CCI H015506 ALS CATEGORY: Carriers Mr. Ruben Arroyo Senior Marine Manager Barwil Unitor Ships Service 210 Edgewater Street Staten Island, New York 10305 Dear Mr. Arroyo: This letter is in response to your request with respect to the coastwise transportation of three individuals, which this office received on August 9, 2007. Our ruling is set forth below. FACTS: You ask whether the individuals, the subject vessel company’s Chief Executive Officer, Vice President, and Accounting Controller, may be transported on the non-coastwise qualified M/V SAGA RUBY (the "vessel"), from New York, New York to Boston, Massachusetts. The individuals will embark in New York on October 3, 2007, and disembark in Boston on or about October 5, 2007. The individuals will be “explain[ing] the merger [of the “Saga and AA Companies”] to the Vessels [sic] senior officers and indeed the passengers that are onboard.” ISSUE: Whether the subject individual are "passengers" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). LAW AND ANALYSIS: Generally, the coastwise laws prohibit the transportation of passengers or merchandise between points in the United States embraced within the coastwise laws in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. Such a vessel, after it has obtained a coastwise endorsement from the U.S. Coast Guard, is said to be "coastwise qualified." The coastwise laws generally apply to points in the territorial sea, which is 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. The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. § 55103 (recodified by Pub. L. 109-304, enacted on October 6, 2006) and provides that: In General. Except as otherwise provided in this chapter or chapter 121 of this title, 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 wholly owned by citizens of the United States for purposes of engaging in the coastwise traffic; and has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed. Section 4.50(b), Customs and Border Protection (CBP) Regulations (19 CFR 4.50(b)) provides as follows: A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business. You state that the subject individuals will be “explain[ing] the merger [of the “Saga and AA Companies”] to the Vessels [sic] senior officers and indeed the passengers that are onboard.” In this context, and 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 CFR § 4.50(b), if they are required to be on board to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are on board because of a necessary vessel ownership or business interest during the voyage. CBP Ruling HQ 101699 (November 5, 1975); see also CBP Ruling HQ 116721 (September 25, 2006). Furthermore, pursuant to U.S. Customs Service General Letter No. 117 (May 20, 1916), we have consistently held that a vessel company’s owners, officers, and if a corporate owner, members of its board of directors are, by virtue of their positions within the company, connected with the ownership or business of that vessel so as not to be passengers while being carried aboard. See, e.g., CBP Ruling HQ H002925 (November 8, 2006). It should be noted that such individuals will not be considered passengers only if they are acting in their official capacities while onboard the vessel. See CBP Ruling HQ H003146 (November 15, 2006); CBP Ruling HQ H003597 (November 29, 2006). We distinguish the rulings cited above from those in which we considered officers that do not fall within any of the categories above who are on board to merely observe operations. In such cases, we have consistently ruled that such individuals would be considered passengers because such activity is only remotely or indirectly connected to the operation, navigation, or business of the vessel itself. See CBP Ruling 111628 (April 6, 1991); CBP Ruling HQ 116668 (July 25, 2006). Thus, in the present case, to the extent that each of three individuals, the Chief Executive Officer, the Vice President, and the Accounting Controller of the company that owns the vessel, will be onboard the vessel in their official capacities to conduct necessary vessel business while traveling between coastwise ports, such individuals would not be considered to be passengers. See HQ 116721, supra. We find that the proposed activity in this case will be carried out by the aforementioned officials and is necessary vessel business. Therefore, we determine that the subject individuals are not "passengers" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Accordingly, the coastwise transportation of such individuals is not 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 CFR 4.50(b). Therefore, the coastwise transportation of such individuals is not in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch