VES-3-02:OT:RR:BSTC:CCI H019350 ALS

Mr. Robert M. Moore
Vice President Marine & Terminal Operations
Atlantic Container Line
194 Wood Avenue South, Suite 500
Iselin, New Jersey 08830

RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b)

Dear Mr. Moore:

This letter is in response to your request of November 5, 2007, with respect to the coastwise transportation of two individuals. Our ruling is set forth below.

FACTS:

You ask whether two individuals may be transported on the non-coastwise qualified M/V ATLANTIC COMPASS ("vessel"). You state that one of the individuals will embark in Halifax, Nova Scotia, Canada on November 17, 2007, and will disembark in Port Elizabeth, New Jersey on November 24, 2007. The other individual will embark in Port Elizabeth on November 19, 2007 and remain aboard the vessel until he disembarks in Port Elizabeth on November 24, 2007. The two individuals will be aboard the vessel to carry out "experiments to test the efficacy of the prototype ballast water treatment installation on board the vessel."

ISSUE:

Whether the subject individuals are "passengers" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b).

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 (recodified by Pub. L. 109-304, enacted on October 6, 2006) and provides that:

(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 the coastwise traffic; and

(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.

Section 4.50(b), Customs and Border Protection (CBP) Regulations (19 CFR 4.50(b)) provides as follows:

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

In regard to the first individual that will be embarking in Canada, with the proposed itinerary beginning in a foreign country and ending here in the United States, the transportation of that individual does not violate section 55103 because it does not involve transportation between two coastwise points. In regard to the second individual, with the proposed itinerary beginning in Port Elizabeth and ending at the same port, the transportation of that individual also does not violate section 55103 because it does not involve transportation between two coastwise points. Thus, the prohibition against the coastwise transportation of passengers aboard a non-coastwise qualified vessel is not applicable in either case presented here. Accordingly, the proposed transportation of the subject individuals is not in violation of 46 U.S.C. § 55103.

HOLDING:

The proposed transportation of the subject individuals is not coastwise transportation within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Therefore, the proposed transportation of such individuals is not in violation of 46 U.S.C. § 55103.

Sincerely,

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

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