Voyage-to-Nowhere; 46 U.S.C. § 55103; HQ H021838 (Jan. 24, 2008); H027231 (May 2, 2008); H030959 (June 17, 2008).

HQ H041915 October 22, 2008 VES-3-02-OT:RR:BSTC:CCI H041915 LLB CATEGORY: Carriers Mr. Robert M. Moore Vice President Marine & Terminal Operations Atlantic Container Line 194 Wood Avenue South, Suite 500 Iselin, New Jersey 08830 RE: Voyage-to-Nowhere; 46 U.S.C. § 55103; HQ H021838 (Jan. 24, 2008); H027231 (May 2, 2008); H030959 (June 17, 2008). Dear Mr. Moore: This letter is in response to your October 17, 2008, correspondence, in which you request "permission" for the five individuals mentioned therein to be transported aboard the M/V ATLANTIC COMPASS. We are construing your correspondence as a request for a ruling to determine whether the coastwise laws, specifically 46 U.S.C. § 55103, and the regulations promulgated under that statute, 19 C.F.R. § 4.50(b), apply to the factual scenario you present. Our decision follows. FACTS The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified M/V ATLANTIC COMPASS (the “vessel”). The individuals will embark in Newark, New Jersey on or about November 3, 2008 and remain onboard until they disembark in Newark, New Jersey on or about November 8, 2008. ISSUE Whether the use of a non-coastwise qualified vessel in the voyage described above constitutes engagement in the coastwise trade in violation of 46 U.S.C. § 55103. 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. See 33 C.F.R. § 2.22(a)(2)(2008). The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. § 55103 which provides: (a) 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- (1) is wholly owned by citizens of the United States for purposes of engaging in coastwise traffic; (2) 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. (b) Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed. In its administration of 46 U.S.C. § 55103, U.S. Customs and Border Protection has ruled that the carriage of passengers entirely within territorial waters, even though the passengers disembark at their point of embarkation and the vessel touches no other coastwise point, is considered coastwise trade subject to the coastwise laws. However, the transportation of passengers to the high seas (i.e. beyond U.S. territorial waters) and back to the point of embarkation, assuming the passengers do not go ashore, even temporarily, at another United States point, often called a "voyage-to-nowhere", is not considered coastwise trade. See HQ H014892 (Aug. 17, 2007); HQ 113379 (Mar. 23, 1995); and 29 Opinions of the Attorney General 318; see also HQ H027231 (May 2, 2008); HQ H021838 (Jan. 24, 2008); HQ H030959 (June 17, 2008). Based on the facts you provided, the coastwise laws are inapplicable to the subject individuals’ voyage. The proposed itinerary beginning in Newark and ending at the same point does not violate section 55103 because it constitutes a voyage-to-nowhere and does not involve transportation between two coastwise points. HOLDING The use of a non-coastwise qualified vessel in the voyage described above does not constitute engagement in the coastwise trade in violation of 46 U.S.C. § 55103. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch