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

HQ H232114 August 27, 2012 VES-3-02-RR:BSTC:CCI H232114 WRB CATEGORY: Carriers Mr. Ramiro A. Hurtado Luis A. Ayala Colon Sucrs., Inc. Carr. 28 Edificio 1211 Port Zone San Juan, PR 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 August 24, 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 aboard the non-coastwise-qualified M/V FREMANTLE EXPRESS, from San Juan, Puerto Rico, to Houston, Texas. The subject individual would embark the vessel at San Juan on September 3, 2012, and disembark at Houston on September 10, 2012. The individual is to be carried onboard in the capacity of the owners’ inspector/auditor to conduct internal inspections and audits of International Safety Management (ISM) facility code procedures compliance 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 would be carried onboard in the capacity of the owners’ inspector/auditor to conduct internal inspections and audits of International Safety Management (ISM) facility code procedures compliance while the vessel is at sea. 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 an individual on the subject vessel from San Juan, Puerto Rico, to Houston, Texas is not a violation of the coastwise laws pursuant to 19 U.S.C. § 55104. HOLDING: The proposed itinerary described above, in which a passenger embarks the vessel at San Juan, Puerto Rico, and disembarks at Houston, Texas, is not a violation of the coastwise laws pursuant to 46 U.S.C. § 55104. 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