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

HQ H208449 March 15, 2012 VES-3-02-RR:BSTC:CCI H208449 LLB CATEGORY: Carriers Mr. Ramiro A. Hurtado Luis A. Ayala Colon Sucrs., Inc. Carr. 28 Edifico 1211 Port Zone San Juan, Puerto Rico 00920 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b) Dear Mr. Hurtado: This letter is in response to your correspondence of March 8, 2012 with respect to the coastwise transportation the individual mentioned therein. 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 SYDNEY EXPRESS (“the vessel”). The individual will embark in San Juan, Puerto Rico on March 17, 2012, and will disembark in Houston, Texas on March 23, 2012. ISSUE Whether the subject individual may be transported on the subject vessel pursuant to 46 U.S.C. § 55104. 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 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. Title 46 United States Code § 55104(b) provides, “Except as otherwise provided in this section, a vessel not qualified to engage in the coastwise trade may transport passengers between a port in Puerto Rico and another port in the United States.” Accordingly, the subject vessel, as a non-coastwise-qualified vessel, may transport passengers between Puerto Rico and other ports in the United States. Therefore, the transportation of the subject individual on the vessel from San Juan, Puerto Rico to Houston, Texas is not a violation of the coastwise laws pursuant to 19 U.S.C. § 55104(b). HOLDING The proposed itinerary described above, in which an individual embarks at San Juan, Puerto Rico and disembarks the vessel at Houston, Texas is not a violation of the coastwise laws pursuant to 46 U.S.C. § 55104(b). Sincerely, George Frederick McCray Supervisory Attorney-Advisor/Chief Cargo Security, Carriers and Immigration Branch Office of International Trade, Regulations & Rulings U.S. Customs and Border Protection