VES-3-02-RR:BSTC:CCI H186131 WRB
Ms. Jan Belleme
Holistic Holiday at Sea
P.O. Box 457
Saluda, NC 28773
RE: Coastwise Transportation; 46 U.S.C. § 55103; 46 U.S.C. § 55104; 19 C.F.R. §
4.50(b)
Dear Ms. Belleme:
This letter is in response to your correspondence of September 15, 2011, with respect to the coastwise transportation of two individuals. Our ruling is set forth below.
FACTS:
You ask whether two individuals may be transported aboard a non-coastwise-qualified vessel for only certain portions of a closed-loop cruise originating and terminating at Fort Lauderdale, Florida. The proposed vessel itinerary originates at Fort Lauderdale, Florida; then travels to St. Thomas, U.S. Virgin Islands; San Juan, Puerto Rico; Nassau, Bahamas; and, returns to Ft. Lauderdale, from March 3, 2012 to March 10, 2012. You seek to have first individual embark at St. Thomas, U.S.V.I., and disembark at Ft. Lauderdale. The second individual seeks to embark at Ft. Lauderdale and disembark at St. Thomas. Alternatively, the second individual may disembark the vessel in San Juan.
ISSUES:
Whether the proposed itineraries of the first individual, embarking at St. Thomas, U.S. Virgin Islands and disembarking at Ft. Lauderdale, and the second individual, embarking at Ft. Lauderdale and disembarking at St. Thomas, U.S. Virgin Islands, constitute an engagement in coastwise trade in violation of 46 U.S.C. § 55103.
Whether disembarkation of the second individual at San Juan, Puerto Rico, would constitute 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.
ISSUE 1:
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 voyages from Fort Lauderdale to St. Thomas, and St. Thomas to Fort Lauderdale.
ISSUE 2:
Should the second individual decide to disembark the vessel at San Juan, Puerto Rico, 46 U.S.C. § 55104(b) provides, “Except as otherwise provided in this section, a vessel not qualified to engage in the coastwise trade may transport passengers between a port in Puerto Rico and another port in the United States.” Accordingly, the subject vessel, as a non-coastwise-qualified vessel, may transport passengers between Puerto Rico and other ports in the United States. Therefore, the transportation of an individual on the subject vessel from Fort Lauderdale, Florida, to San Juan, Puerto Rico, is not a violation of the coastwise laws pursuant to 19 U.S.C. § 55104.
HOLDING:
The proposed cruise itinerary described above, in which passengers embark and disembark the vessel at St. Thomas, U.S. Virgin Islands, does not constitute a violation of 46 U.S.C. § 55103.
The proposed cruise itinerary described above, in which passengers embark or disembark the vessel at San Juan, Puerto Rico, is not a violation of the coastwise laws pursuant to 46 U.S.C. § 55104.
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