VES-3-RR:IT:EC 114439 GOB
Fred Nyhuis
Principal Consultant
River & Environmental Solutions
Route One, Box 135
Milton, WV 25541-9719
RE: 46 U.S.C. 883; Coastwise transportation; Floating drydock
Dear Mr. Nyquis:
This is in response to your letter of July 28, 1998 on
behalf of Superior Marine, Inc.
FACTS:
You ask whether a certain drydock requires a coastwise
endorsement on its U.S. Coast Guard certificate of documentation.
You describe the facts as follows:
Superior Marine, Inc. uses this vessel (identified as
Drydock #1) for the repair of other vessels operating
on the Western Rivers. It is at all times moored to
Superior Marine's shoreside properties along the Ohio
River in South Point, OH. As a conventional drydock,
it is lowered in the water, permitting the entry of a
vessel between its wing walls. Once in place, the
vessel to be repaired is lifted free of the water as
the drydock is dewatered. Drydock #1 is not used for
the transportation of any vessel or property.
ISSUE:
Whether the subject drydock is engaged in coastwise
transportation such that it requires a coastwise endorsement?
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. A vessel that is built in,
documented under the laws of, and owned by citizens of the United
States, and which obtains a coastwise endorsement from the U.S.
Coast Guard, is referred to as "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.
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
vessel built in, documented under the laws of, and owned by
citizens of the United States. Equipment and supplies of the
transporting vessel are not considered "merchandise" for this
purpose.
19 CFR 4.80b(a) provides in pertinent part that a coastwise
transportation of merchandise takes place when merchandise laden
at a point embraced within the coastwise laws is unladen at
another coastwise point, regardless of the origin or ultimate
destination of the merchandise.
We have previously held that the use of a moored drydock in
hauling vessels out of the water for repairs and subsequently
replacing the vessels back in the water at the same point from
which they were elevated is not considered the transportation of
merchandise between two coastwise points. See Ruling 110283
dated November 17, 1989 and Ruling 113208 dated September 19,
1984. Therefore, such activity is not prohibited by 46 U.S.C.
App. 883. Accordingly, a coastwise endorsement is not required.
HOLDING:
The use of a moored drydock in hauling vessels out of the
water for repairs and subsequently replacing the vessels back in
the water at the same point from which they were elevated is not
considered the transportation of merchandise between two
coastwise points. Therefore, such activity is not prohibited by
46 U.S.C. App. 883. Accordingly, a coastwise endorsement is not
required.
Sincerely,
Jerry Laderberg
Chief,
Entry Procedures and Carriers