VES-13-18 RR:IT:EC 116312 GOB
Richard T. McCreary
Executive Vice President
VT Halter Marine, Inc.
P.O. Box 1328
Pascagoula, MS 39568-1328
RE: 46 U.S.C. App. § 883; Coastwise Transportation of Merchandise; Dry-Dock
Dear Mr. McCreary:
This letter is in reply to your letter of September 13, 2004 in which VT Halter Marine Inc. (“VTHM”) requests a ruling as to whether certain activity is in accord with title 46, United States Code Appendix, § 883 (46 U.S.C. App. 883).
FACTS:
You describe the facts as follows:
The Pasha Car Carrier will be launched, in part, using a roller-skid method designed by Heger Dry Dock Inc. This method will allow for the transfer of the vessel from a concrete building slab, located within the VTHM Pascagoula facility, onto a foreign-built, floating dry-dock anchored pier side.
The proposed floating dry-dock, Bollinger Dry-Dock No. 5, will be provided by Bollinger Gulf Repair LLC, 3900 Jordan Rd., New Orleans, La. 70126.
Specifically, the skid out procedure begins with the installation of skid beam rails that will be positioned on the building slab and on the deck of Dry-Dock No. 5. Once the skid rails are in place, a series of transport rollers and transport cars are positioned under the car carrier at predetermined support locations and blocked tight against the exterior hull surface. At this time, the temporary blocks used to support the vessel during the construction process are removed and the weight of the car carrier is transferred to the roller skid system. With the dry-dock positioned pier side, the vessel is now ready for transfer.
The transfer process begins as the vessel is slowly pulled from the onshore position, along the transfer rails, onto the dry-dock. The transfer process is accomplished by using a winch, located at the far-most, offshore end of the dry-dock, to pull the vessel to its on dock, launch position.
Once the vessel is located completely upon the dry-dock, the dry-dock will then be ballasted down allowing the car carrier to float free and be towed back pier side, completing the launch process. The dry-dock will not be moved during the launching of the vessel and will remain moored alongside VTHM’s pier at all times.
ISSUE:
The applicability of 46 U.S.C. App. 883 to the activity described above.
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 built in, documented under the laws of, and owned by citizens of the United States is said to be “coastwise-qualified.” The owner of such a vessel may obtain a coastwise endorsement from the U.S. Coast Guard.
Title 46, United States Code Appendix, section 883 (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 coastwise-qualified vessel as discussed above.
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.
Section 4.80b(a), Customs and Border Protection Regulations (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 HQ 114439 dated August 21, 1998, HQ 110283 dated November 17, 1989 and HQ 113208 dated September 19, 1984. Therefore, such activity was not prohibited by 46 U.S.C. App. § 883.
In this case, we find that, provided there is no movement of the drydock during the proposed activity aside from its being ballasted down, such activity is not violative of 46 U.S.C. App. § 883.
HOLDING:
The proposed activity as described above is not violative of 46 U.S.C. App. § 883.
Sincerely,
Glen E. Vereb
Chief
Entry Procedures and Carriers Branch