VES-3-OT:RR:BSTC:CCI H216023 LLB

Mr. Dane Nesmith
Norton Lilly International
952 Houston Northcutt Blvd., Suite 100
Mount Pleasant, South Carolina 29464

RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b). Dear Mr. Nesmith:

This is in response to your correspondence of May 2, 2012, in which you inquire about the coastwise transportation of the individual mentioned therein aboard the MAERSK UTAH. Our decision follows.

FACTS

The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified MAERSK UTAH (“the vessel”). The individual is the wife of the vessel’s first mate.

ISSUE

Whether the individual described in the FACTS section above is a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 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 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 trade; 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) of the Customs and Border Protection (“CBP”) Regulations 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.

CBP has determined, in accordance with General Letter No. 117 of May 20, 1916, from the former Bureau of Navigation, wives and children of the officers of a vessel are not passengers within the meaning of the navigation laws. See Cust. Bull., Vol. 36, No. 23, p. 50 (June 5, 2002). Insofar as the first mate of the vessel is an officer of the vessel and the subject individual is the first mate’s wife, we determine that the subject individual is not a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of the individual in question would not be in violation of 46 U.S.C. § 55103.

HOLDING

The individual described in the FACTS section above is not a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individual would not be 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