Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b)

HQ H036200 August 22, 2008 VES-3-02-RR:BSTC:CCI H036200 GG CATEGORY: Carriers Mr. Matt Cress Norton Lilly International 249 E. Ocean Blvd, Ste 200 Long Beach, California 90808 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b) Dear Mr. Cress: This is in response to your correspondence of August 21, 2008, in which you inquire about the coastwise transportation of an individual. Our ruling is set forth below. FACTS The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified M/V HANJIN OTTAWA (the “vessel”), from the port of Los Angeles, to Oakland, California, during the period from August 24, 2008, to August 25, 2008. The subject individual is the wife of the vessel’s third officer. ISSUE Whether the subject individual is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b). LAW AND ANALYSIS The coastwise passenger statute, 46 U.S.C. § 55103 (recodified from former 46 U.S.C. App. § 289; Pub. L. 109-304, October 6, 2006), provides that no vessel may transport passengers between ports or places in the United States either directly or by way of a foreign port, upon a penalty of $300 for every passenger so transported and landed, unless it: is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and has been issued a certificate of documentation with a coastwise endorsement under chapter 121 of Title 46, United States Code, or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. Pursuant to the regulations promulgated under the authority of 46 U.S.C. § 55103, a passenger is defined as it is under 19 CFR § 4.50(b), which provides that a passenger is “any person carried aboard a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.” See 19 CFR § 4.80a(a)(5). In this regard, persons transported on a vessel would be passengers unless they were “directly and substantially” connected with the operation, navigation, ownership, or business of that vessel itself. See Cust. Bull., Vol. 36, No. 23, p. 50 (June 5, 2002). However, we note that the above notice also repeated the long-held CBP position that in accordance with General Letter No. 117 of May 20, 1916, from the former Bureau of Navigation, wives of the officers of a vessel are not passengers since they are connected to the ownership and business of the vessel. A third officer qualifies as an “officer of the vessel,” therefore, the spouse of the vessel’s third officer may be aboard a non-coastwise-qualified vessel during a coastwise voyage and is not a “passenger” for purposes of administering 46 U.S.C. § 55103. HOLDING Immediate family members (i.e., a spouse) of officers of the vessel 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 on a non-coastwise qualified vessel is not in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch