VES-3-02-OT:RR:BSTC:CCI H012132 LLB

Mr. Peter Bideau
Hovensa Marine Agency
#1 Estate Hope
Christiansted, USVI 00820-5652

RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.80a; 19 C.F.R. § 4.50(b)

Dear Mr. Bideau:

This letter is in response to your June 4, 2007, correspondence, in which you inquire about the coastwise transportation of the individual mentioned therein aboard the M/T MOSCOW SEA. Our decision follows.

FACTS

The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified M/T MOSCOW SEA (the “vessel”) from St. Croix, U.S. Virgin Islands to various ports in the contiguous U.S., including Wilmington, North Carolina; Charleston, South Carolina; and Jacksonville, Florida. The individual will embark in St. Croix on June 8, 2007. The subject individual will act as a superintendent for tank loading operations and will disembark at one of the foregoing U.S. ports on or around June 15, 2007.

ISSUE

Whether the use of a non-coastwise qualified vessel in the voyage described above constitutes an engagement in the coastwise trade in violation of 46 U.S.C. § 55103.

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. Such a vessel, after it has obtained a coastwise endorsement from the U.S. Coast Guard, is said to be “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. The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. § 55103 which provides:

(a) In General. Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not transport passengers between ports or places in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel- (1) is wholly owned by citizens of the United States for purposes of engaging in coastwise traffic; (2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. (b)Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed.

The Customs and Border Protection (“CBP”) Regulations, promulgated under the authority of 46 U.S.C. § 55103, provide:

A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of the vessel, her navigation, ownership, or business.

19 C.F.R. § 4.50(b).

Title 46, United States Code, § 55101 provides, in pertinent part:

(a) In General. Except as provided in subsection (b), the coastwise laws apply to the United States, including the island territories and possessions of the United States.

(b) Exceptions. The coastwise laws do not apply to – . . . (4) the Virgin Islands until the President declares by proclamation that the coastwise laws apply to the Virgin Islands.

The President of the United States has not declared by proclamation that the coastwise laws extend to the U.S. Virgin Islands. Therefore, the coastwise laws, including 46 U.S.C. § 55103, do not apply to the proposed transportation of the subject individual from St. Croix, U.S. Virgin Islands to the various U.S. ports described above.

HOLDING

Pursuant to 46 U.S.C. § 55101(b)(4), the coastwise laws, including 46 U.S.C. § 55103, do not apply to the proposed transportation of the subject individual from St. Croix, U.S. Virgin Islands to the various U.S. ports described herein. Therefore, there is no prohibition under the coastwise laws with respect to the proposed transportation.

Sincerely,

Glen E. Vereb
Chief
Cargo Security, Carriers and Immigration Branch