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

HQ H118457 August 10, 2010 VES-3-02-RR:BSTC:CCI H118457 GOB CATEGORY: Carriers Tom Cook GAC Shipping (USA) Inc. One International Plaza, Suite 250 Philadelphia, PA 19113 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b) Dear Mr. Cook: This letter is in response to your correspondence of August 10, 2010, with respect to the transportation of certain individuals. Our ruling is set forth below. FACTS: You ask whether two passengers may be transported on the non-coastwise-qualified INDEPENDENT PURSUIT (the “vessel”), from Liverpool, England to Wilmington, North Carolina. They will disembark the vessel in Wilmington on, from August 11, 2010. They have not temporarily left the vessel at any port. ISSUE: Whether the subject transportation is violative 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. 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: (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- 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. (b) 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. The subject individuals are “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b). Because they embarked the vessel at a foreign port and will disembark the vessel at a U.S. port, there will be no violation of 46 U.S.C. § 55103. HOLDING: The transportation of the passengers from Liverpool, England to Wilmington, North Carolina will not be in violation of 46 U.S.C. § 55103. Sincerely, George Frederick McCray Chief Cargo Security, Carriers and Immigration Branch