VES-3-06-CO:R:P:C 110798 KVS
Mr. Larry J. Smith
Alaskan Harvest
P.O. Box 1269
Sitka, Alaska 99835
Re: Coastwise trade; fish processing
Dear Mr. Smith:
This is in response to your letter dated January 17, 1989,
which requests a ruling regarding the use of a foreign-built
vessel for fish processing in U.S. waters.
FACTS:
You propose to purchase a vessel with a foreign-built hull
which was engaged in fish processing in U.S. waters prior to
1987. You state that the vessel's documentation allows for "fish
processing" but not for "coastwise trade".
You state that you intend to have the vessel anchored in
U.S. waters, where it will receive fish from fishing boats,
process the fish at that location, and then deliver the processed
fish to a shore-based facility in Sitka or Seattle.
ISSUE:
Whether a foreign-built vessel which receives fish and
processes it while anchored in the territorial waters of the
United States before transporting it to a shore-based facility is
engaged in coastwise trade in violation of 19 U.S.C. 883.
LAW AND ANALYSIS:
Title 46, United States Code Appendix, section 883 (46
U.S.C. 883), often called the Jones Act, provides, in part, that
no merchandise shall be transported between points in the United
States embraced within the coastwise laws, either directly or via
a foreign port, or for any part of the transportation, in any
vessel other than a vessel built in and documented under the laws
of the United States and owned by persons who are citizens of the
United States (i.e., a coastwise-qualified vessel).
- 2 -
In interpreting section 883, Customs has ruled that a point
in the United States embraced within the coastwise laws is a
point within the territorial waters of the United States. The
territorial waters of the United States consist of the
territorial sea, defined as the belt, 3 nautical miles wide,
adjacent to the coast of the United States and seaward of the
territorial sea baseline.
Section 4.80b(a), Customs Regulations (19 CFR 4.80b(a)
provides, in part, that:
A coastwise transportation of merchandise
takes places [sic], within the meaning of the
coastwise laws, when merchandise laden at a
point embraced within the coastwise law
("coastwise point") is unladen at another
coastwise point, regardless of the origin or
ultimate destination of the merchandise.
The Customs laws in 19 U.S.C. 1401(c) define the term
merchandise as "goods, wares, and chattels of every description,
and includes merchandise the importation of which is
prohibited...".
Therefore, when fish are loaded onto a vessel anchored
within the territorial waters of the United States, processed,
and then transported to another coastwise point and unladen, a
coastwise transportation has taken place. Thus, the activity in
which Alaskan Harvest proposes to engage is in violation of 46
U.S.C. App. 883.
HOLDING:
A foreign-built vessel which receives fish and processes it
while anchored in U.S. territorial waters before transporting it
to a shore-based facility in the United States is engaging in
coastwise trade in violation of 46 U.S.C. App. 883.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch