VES-3-02:OT:RR:BSTC:CCI H137215 WRB
Mr. Octavio Sanchez
Manager, Port Operations
Crystal Cruises
2049 Century Park East
Suite 1400
Los Angeles, CA 90067
RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b)
Dear Mr. Sanchez:
This letter is in response to your correspondence of December 8, 2010, with respect to the coastwise transportation of an individual. Our ruling is set forth below.
FACTS:
You ask whether the individual may be transported on the non-coastwise qualified M/V CRYSTAL SERENITY (the “vessel”), from Miami, Florida, to St. Thomas, U.S. Virgin Islands. The individual will embark in Miami on December 11, 2010, and travel to St. Thomas, arriving December 14, 2010. The individual is a service engineer who will conduct a power blackout investigation while the vessel is underway. The individual will sail with the vessel to conduct an investigation to determine the root causes of an onboard power blackout, and to recommend future preventive measures.
ISSUE:
Whether the use of a non-coastwise-qualified vessel in the voyage described above constitutes an engagement in 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 (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-
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.
(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, navigation, ownership, or business of the vessel.
Pursuant to 46 U.S.C. § 55101(b), while the coastwise laws apply to the island territories and possessions of the United States, they are inapplicable to the Virgin Islands until the President declares by proclamation that the coastwise laws apply to the Virgin Islands. As the President of the United States has not declared by proclamation that the coastwise laws extend to the U.S. Virgin Islands, the coastwise laws, including 46 U.S.C. § 55103, do not apply. See HQ H006044 (January 30, 2007); HQ H012132 (June 7, 2007). Accordingly, 46 U.S.C. § 55103 is inapplicable to the subject voyage from Miami to St. Thomas. There will be no violation of the passenger coastwise statute insofar as the subject individual’s transportation does not constitute an engagement in coastwise trade.
HOLDING:
The use of a non-coastwise-qualified vessel in the subject voyage described above does not constitute an engagement in the coastwise trade in violation of 46 U.S.C. § 55103.
Sincerely,
George Frederick McCray
Supervisory Attorney-Advisor/Chief
Cargo Security, Carriers and Immigration Branch
Office of International Trade, Regulations & Rulings
U.S. Customs and Border Protection