VES-3-02:RR:BSTC:CCI H077619 ALS

Mr. Desmond Michael
Port Manager
Norton Lilly International
5080 McLester Street
APM Terminal, Control Building, 3rd Floor
Elizabeth, New Jersey 07207

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

Dear Mr. Michael:

This letter is in response to your request with respect to the coastwise transportation of certain individuals. We received your request on September 28, 2009. Our ruling is set forth below.

FACTS:

You ask whether certain individuals may be transported on the non-coastwise qualified ASUKA II (the "vessel"), from New York, New York on or about June 3, 2010, to San Francisco, California on or about June 23, 2010, with intervening stops at San Juan, Puerto Rico, St. John, U.S. Virgin Islands, Curacao, Netherlands Antilles, and Acapulco, Mexico.

ISSUE:

Whether the proposed cruise itinerary constitutes a 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 (recodified by Pub. L. 109-304, enacted on October 6, 2006) and provides that:

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

is wholly owned by citizens of the United States for purposes of engaging in the coastwise traffic; and

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.

Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed.

Pursuant to Section 4.80a(a)(1), CBP Regulations (19 CFR 4.80a(a)(1)), a “coastwise port” is a port in the United States, or its territories, or its possessions embraced within the coastwise laws. Pursuant to Section 4.80a(a)(2), CBP Regulations (19 CFR 4.80a(a)(2)), a “nearby foreign port” is a “foreign port in North America, Central America, the Bermuda Islands, or the West Indies (including the Bahama Islands, but not including the Leeward Islands of the Netherland Antilles, i.e., Aruba, Bonaire, and Curacao.” Pursuant to Section 4.80a(a)(3), CBP Regulations (19 CFR 4.80a(a)(3)), a “distant foreign port” is “any foreign port that is not a nearby [foreign] port.”

Section 4.80a(b)(3), CBP Regulations (19 CFR 4.80a(b)(3)) provides as follows:

If the passenger is on a voyage to one or more coastwise ports and a distant foreign port or ports (whether or not the voyage includes a nearby foreign port or ports) and the passenger disembarks at a coastwise port, there is no violation of the coastwise law provided the passenger has proceeded with the vessel to a distant foreign port.

As noted above, the individuals will be embarking at a coastwise point (New York, New York), and proceeding with the vessel to San Juan, Puerto Rico, St. John, U.S. Virgin Islands, Curacao, Netherlands Antilles, and Acapulco, Mexico before disembarking in San Francisco, California. Pursuant to section 4.80a(b)(3), the subject individuals may disembark at San Francisco, provided that the individuals do in fact proceed with the vessel to Curacao, which by definition is a distant foreign port. Based on the foregoing, the proposed coastwise transportation of the subject individuals is not in violation of 46 U.S.C. § 55103.

HOLDING:

The proposed cruise itinerary described above does not constitute a violation of 46 U.S.C. § 55103.

Sincerely,

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