VES-3-06-CO:R:IT:C 112827 DEC

Mr. Brendan Corrigan
Carnival Cruise Lines
3655 NW 87 Avenue
Miami, Florida 33134

RE: Coastwise Trade; Cruise Itinerary; TROPICALE

Dear Mr. Corrigan:

This ruling is in response to your inquiry of July 1, 1993, in which you seek clarification of whether the anticipated itinerary of your non-coastwise qualified vessel (TROPICALE) constitutes a violation of Customs regulations.

FACTS:

You state that the TROPICALE will embark approximately six hundred passengers in both New Orleans, Louisiana and Tampa Bay, Florida, respectively, with no debarkation and will return, after stops at Grand Cayman and Cozumel, to New Orleans and Tampa Bay for debarkation. While in Tampa, the vessel operator, Carnival Cruise Lines, plans to allow passengers who boarded the TROPICALE in New Orleans to go ashore temporarily for sightseeing and reboard the vessel on sailing from Tampa. The proposed itinerary which is the subject of this ruling is set out below.

Sunday Tampa Bay Monday at sea Tuesday Grand Cayman Wednesday Playa del Carmen/Cozumel Thursday at sea Friday New Orleans Saturday at sea Sunday Tampa Bay

ISSUE:

Whether a non-coastwise qualified vessel may complete the itinerary described above without violating 19 U.S.C. app. 289 and 19 C.F.R. 4.80a.

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LAW AND ANALYSIS:

Generally, the coastwise laws prohibit the transportation of merchandise or passengers 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. The coastwise law applicable to the carriage of passengers is found in Title 46, United States Code, Appendix, section 289 (46 U.S.C. app. 289) and provides that:

No foreign vessel shall transport passengers between ports or places in the United States either directly or by way of a foreign port, under a penalty of $200 for each passenger so transported and landed.

46 U.S.C. app. 289 (1992).

Title 19, Code of Federal Regulations, Section 4.80a(b) provides that:

The applicability of the coastwise law (46 U.S.C. 289) to a vessel not qualified to engage in the coastwise trade (i.e., either a foreign-flag vessel or a U.S.-flag vessel that is foreign-built or at one time has been under foreign-flag) which embarks a passenger at a coastwise port is as follows:

. . .

(2) If the passenger is on a voyage to one or more coastwise ports and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks at a coastwise port other than the port of embarkation, there is a violation of the coastwise law.

19 C.F.R. 4.80a(b)(1993).

A coastwise port is a "port in the U.S., its territories, or possessions embraced within the coastwise laws." 19 C.F.R. 4.80a(a)(1)(1992). A nearby foreign port is defined as "any port in North America, Central America, the Bermuda Islands, or the West Indies (including the Bahama Islands, but not including the Leeward Islands of the Netherlands Antilles, i.e. Aruba, Bonaire, and Curacao)." 19 C.F.R. 4.80a(a)(2)(1993).

The legality of your proposed itinerary must be analyzed through an application of the preceding rules and definitions. You indicated that the TROPICALE will begin its voyage in New Orleans, a coastwise port, and pick up passengers at Tampa Bay, also a coastwise port, prior to sailing to Grand Cayman and Cozumel which -3-

are nearby foreign ports. After a seven day cruise, passengers will disembark at the ports at which they boarded. Passengers, who embarked in New Orleans will be allowed to temporarily leave the vessel in Tampa Bay, but are required to return to the vessel prior to departure to Grand Cayman.

On the surface, it appears that there is a coastwise violation because passengers are being transported from one coastwise point to another without traveling to a distant foreign port. However, no violation of the passenger coastwise law will occur so long as no passenger disembarks "at a coastwise port other than the port of embarkation . . .." 19 C.F.R. 4.80a(b)(2)(1993). Title 19, Code of Federal Regulation, section 4.80a(a)(4) states that

. . . disembark means a passenger leaving a vessel at the conclusion of a specific voyage. The terms embark and disembark are not applicable to a passenger going ashore temporarily at a coastwise port who reboards the vessel and departs with it on sailing from the port.

19 C.F.R. 4.80a(a)(4)(1993).

Customs is satisfied that passengers who go ashore temporarily in Tampa Bay and later return to the TROPICALE upon departure to Grand Cayman do not disembark from the vessel.

HOLDING:

The proposed itinerary of the TROPICALE is not in violation of the passenger coastwise law. Although the TROPICALE's proposed itinerary includes the transport of passengers between coastwise points, there is no "disembarkation" at a coastwise port other than the port of embarkation. Consequently, this contemplated voyage does not violate Customs regulation 19 C.F.R. 4.80a(b)(2)(1993).

Sincerely,

Acting Chief