VES-3-CO:R:IT:C 113208 GOB
E. Peter Kelly
President
F/V North Wind, Inc.
2602 39th West
Seattle, Washington 98199
RE: Foreign-built drydocks; 46 U.S.C. App. 883
Dear Mr. Kelly:
This is in response to your letter dated August 24, 1994.
FACTS:
You describe the facts as follows:
We recently bought a shipyard in Seattle, WA, and we would
like to increase our capacity. One way to do this is to
purchase foreign built Dry Docks and bring them to Seattle
and use them here in the service of hauling vessels out of
the water for repairs.
ISSUE:
Whether the use of a foreign-built drydock for the purpose of
hauling vessels out of the water for repairs constitutes a
violation of 46 U.S.C. App. 883.
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.
46 U.S.C. App. 883, the coastwise merchandise statute 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
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vessel built in, documented under the laws of, and owned by
citizens of the United States.
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.
Pursuant to 46 U.S.C. App. 883, the foreign-built drydock may
not transport a vessel, or any merchandise, between two coastwise
points, including two points within a harbor.
If the foreign-built drydock remains moored and merely hauls
vessels out of the water for repairs and subsequently places the
vessels back in the water at the same point from which the vessels
were elevated, such activity is not transportation between two
coastwise points, and thus is not prohibited by 46 U.S.C. App. 883.
HOLDING:
If the foreign-built drydock remains moored and merely hauls
vessels out of the water for repairs and subsequently places the
vessels back in the water at the same point from which the vessels
were elevated, such activity is not transportation between two
coastwise points, and thus is not prohibited by 46 U.S.C. App. 883.
Sincerely,
Arthur P. Schifflin
Chief
Carrier Rulings Branch