VES-3-19 CO:R:IT:C 112098 JBW
Mr. David L. Folsom
Sail Boston 1992, Inc.
250 Summer Street
Boston, MA 02210
RE: Coastwise; Passengers; Sailing School; 46 U.S.C. App. 289.
Dear Mr. Folsom:
This letter is in response to your inquiry of February 7,
1992, in which you request a ruling regarding the use of a
foreign-flag sailing vessel in United States territorial waters.
FACTS:
In your letter, your state that sailing vessels registered
in Russia and Poland will be used in United States waters to
offer sailing instruction. The ships will be manned by both a
permanent and a temporary crew, which crew will be assisting in
the operation of the ship as trainees. Crews of trainees will be
changed at two or more United States ports; some trainees will
board in one United States port and will disembark at another
United States port.
ISSUE:
Whether the use of a foreign-built vessel for sailing
instruction would be in violation of the coastwise passenger law,
46 U.S.C. App. 289.
LAW AND ANALYSIS:
The coastwise laws generally prohibit the transportation of
passengers or merchandise between points in the United States
embraced within the coastwise laws in any vessel other than a
United States built, owned, and documented vessel. 46 U.S.C.
App. 289 (Supp. III 1985) & 46 U.S.C.A. 883 (West Supp. 1991).
Points in the United States embraced within the coastwise laws
include the United States territorial waters. The territorial
waters of the United States consist of the territorial sea,
defined as the belt, three nautical miles wide, seaward of the
territorial sea baseline, and of the internal waters of the
United States, landward of the territorial sea baseline, in cases
where the baseline and the coastline differ. Headquarters Ruling
Letter 111275, dated November 13, 1990.
The Customs Regulations define "passenger" for purposes of
section 289 as "any person carried on a vessel who is not
connected with the operation of such vessel, her navigation,
ownership, or business." See 19 CFR 4.50(b)(1991). The Customs
Service has held that a person being trained or receiving
instruction in the handling or navigation of a vessel, and whose
presence on board the vessel is required in order to receive such
training or instruction, is not a "passenger" within the
coastwise laws. Accordingly, if the vessel is used only for
such training, then it would not be required to have a license to
engage in the coastwise trade. See Headquarters Ruling Letter
109850, dated December 27, 1988, and Headquarters Ruling Letter
109287, dated February 24, 1988.
Therefore, the sole use of a foreign sailing vessel in
connection with a bona fide instructional course in sailing and
navigation with class or other instruction, as opposed to an
outing, does not constitute coastwise trade within the meaning of
46 U.S.C. App. 289. From your description, everyone transported
by the vessels will either be part of the regular crew or be part
of the training crew. Their transportation is therefore
permitted. We stress, however, that all persons being carried in
the vessel must be involved with the operation, navigation, or
business of the vessel. Persons who are carried on board a
vessel for recreational purposes, whether or not they pay a fee,
would be considered "passengers," and their carriage between
places in the United States or entirely within United States
waters would be in violation of the coastwise laws.
HOLDING:
The sole use of a foreign sailing vessel in connection with
a bona fide instructional course in sailing and navigation with
appropriate instruction and training is not coastwise trade in
violation of 46 U.S.C. App. 289.
This letter addresses only those federal requirements that
are administered by the United States Customs Service. While we
are unaware of any federal or state agency requirements that
might pertain to the undertaking you describe, it is possible
that such requirements exist.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch