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

HQ H074977 September 14, 2009 VES-3-02-OT:RR:BSTC:CCI H074977 JLB CATEGORY: Carriers Captain Howard A. Newhoff Manager, Terminal and Port Security Royal Caribbean Cruises Ltd. 1050 Caribbean Way Miami, Florida 33132 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Capt. Newhoff: This letter is in response to your correspondence dated September 3, 2009, in which you request a ruling on whether the coastwise transportation of the individuals mentioned therein aboard the GRANDEUR OF THE SEAS constitutes a violation of 46 U.S.C. § 55103. Our ruling on your request follows. FACTS The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified GRANDEUR OF THE SEAS ("the vessel"). The three individuals will embark on September 24, 2009 at Baltimore, Maryland and will disembark at the port of Portland, Maine on September 26, 2009. The individuals, the Senior Vice President, Hotel Operations, the Senior Vice President, Marine Operations, and the Vice President, Human Resources, will travel aboard the vessel to conduct a series of business meetings with the officers and crew of the vessel. ISSUE Whether the individuals described above would be "passengers" within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b)? LAW AND ANALYSIS The coastwise passenger statute, former 46 U.S.C. App. § 289 recodified as 46 U.S.C. § 55103, pursuant to P.L. 109-304 (October 6, 2006), states that no foreign vessel shall transport passengers "between ports or places in the United States to which the coastwise laws apply, either directly or by way of a foreign port," under a penalty of $300 for each passenger so transported and landed. See also 19 C.F.R. § 4.80(b)(2). 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. Under 46 U.S.C. § 55103, a "passenger" is any person carried aboard a vessel "who is not connected with the operation of the vessel, her navigation, ownership, or business." See also 19 C.F.R. § 4.50(b). In this regard, U.S. Customs and Border Protection ("CBP") provides a strict interpretation of "passenger" defining the term as persons transported on a vessel unless they are "directly and substantially" connected with the operation, navigation, ownership or business of that vessel itself. See Customs Bulletin of June 5, 2002, Vol. 36, No. 23, at pp. 50. In the present case, the three individuals traveling aboard the non-coastwise-qualified vessel are the Senior Vice President, Hotel Operations, the Senior Vice President, Marine Operations, and the Vice President, Human Resources. They are traveling aboard the vessel to conduct a series of business meetings with the officers and crew of the vessel. CBP has previously held that corporate officers or members of the board of directors of the company owning the vessel are not "passengers" under 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b) if they are acting in their official capacity while aboard. See Headquarters Ruling Letter 116668, dated July 25, 2006 (corporate officers and members of the board of directors are not "passengers" while traveling aboard to attend a sales, marketing and training conference to strategize on how to enhance the overall guest experience); see also Headquarters Ruling Letter H062237, dated June 5, 2009 (the Corporate Secretary and General Counsel to the owner of the vessel who is riding aboard the vessel for the purpose of attending a shareholder meeting of the owner and meeting of the board of directors is not considered a "passenger" since he is acting in his official capacity while aboard); Headquarters Ruling Letter H024346, dated May 1, 2008 (the CEO, the President, the Executive VP and CFO are not "passengers" when they are onboard to attend a board of directors meeting). Consequently, the Senior Vice President, Hotel Operations, the Senior Vice President, Marine Operations, and the Vice President, Human Resources, by virtue of their positions and the fact that they will be attending a series of business meetings with the officers and crew while aboard the vessel, e.g. are acting in their official capacities, are not considered "passengers." Accordingly, the coastwise transportation of the subject 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 C.F.R. § 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 3