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

HQ H214583 April 20, 2012 VES-3-02:OT:RR:BSTC:CCI H214583 WRB CATEGORY: Carriers Mr. Jason Tack Rickmers-Linie (America), Inc. 350 Glenborough Drive Suite 180 Houston, TX 77067 RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b) Dear Mr. Tack: This letter is in response to your correspondence of April 20, 2012, with respect to the coastwise transportation of an individual. Our ruling is set forth below. FACTS: You ask whether an individual may be transported on the non-coastwise qualified M/V FORTUNE EPOCH (the “vessel”) from Houston, Texas, to New Orleans, Louisiana, then returning to Houston, Texas. The subject individual would embark the vessel at Houston on April 20, 2012, and disembark the vessel at Houston on April 27, 2012. The individual is the vessel’s owner, who would be carried onboard to assist in the construction of a bulkhead barrier for cargo to be loaded in New Orleans, while the vessel is at sea. 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: 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 trade; 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, navigation, ownership, or business of the vessel. In the present case, you state that the subject individual is the vessel’s owner, who would be carried onboard to assist in the construction of a bulkhead barrier for cargo to be loaded in New Orleans, while the vessel is at sea. You state that the individual will embark the vessel at Houston, Texas, as well as disembark at Houston, Texas. In accordance with 46 U.S.C. § 55103(a), transportation of riders on a non-coastwise-qualified vessel, whether passengers or not, is not violative of that statute when the transportation is not between two different coastwise points. In this case, the individual will be transported from at Houston, Texas, and then back to Houston, Texas, without disembarking at another coastwise point. As such, no coastwise transportation would occur in this case, regardless of the status of the individual at issue. Therefore, the proposed transportation of the individual at issue is not in violation of 46 U.S.C. § 55103. HOLDING: The coastwise transportation of the individual on the voyage described above is not in violation of 46 U.S.C. § 55103. 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