VES-3-02 OT:RR:BSTC:CCR H301678 TNA
Mark Rensen
SMT Shipping Ltd
33 Michalis Zavos Str.
Ayios Athanasios 4107, Limassol
Cyprus
RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b).
Dear Mr. Rensen:
This is in response to your correspondence of November 3, 2018, in which you inquire about the coastwise transportation of the individual mentioned therein aboard the M/T CURACAO PEARL. Our decision follows.
FACTS:
The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified M/T CURACAO PEARL (“the vessel”). The individual will embark the vessel in Charleston, South Carolina on or about November 7, 2018, and will disembark in Morehead City, North Carolina on or about November 16, 2018. The individual will conduct a safety meeting with the vessel’s crew regarding safety self-discharge procedures specific to the vessel’s cargo of Direct Reduced Iron- B (“DRI-B”). The individual will also supervise the vessel’s discharge operations, evaluate the vessel’s crew during discharge operation, and inspect the condition and performance of each cargo gear and the vessel as a whole.
ISSUE:
Whether the individual described in the FACTS section 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.
Section 4.50(b) of the Customs and Border Protection (“CBP”) Regulations provides:
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.
Section 4.80(b)(2) of the CBP Regulations provides:
The penalty imposed for the unlawful transportation of passengers between coastwise points is $300 for each passenger so transported and landed on or before November 2, 2015, and $778 for each passenger so transported and landed after November 2, 2015 (46 U.S.C. § 55103, as adjusted by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015).
In the present case, you state that the individual will conduct a safety meeting with the vessel’s crew regarding safety self-discharge procedures specific to the vessel’s cargo of Direct Reduced Iron- B (“DRI-B”). The individual will also supervise the vessel’s discharge operations, evaluate the vessel’s crew during discharge operation, and inspect the condition and performance of each cargo gear and the vessel as a whole. In accordance with previous Headquarters rulings, workmen, or technicians transported by vessel between ports of the United States are not classified as “passengers,” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b), if they are required to be onboard to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are onboard because of a necessary vessel ownership or business interest during the voyage. HQ 101699 (Nov. 5, 1975); see HQ 116721 (Sept. 25, 2006)(quoting HQ 101699). Furthermore, the shipboard activities engaged in by such aforementioned individuals while traveling on a non-coastwise-qualified vessel between coastwise ports must be “directly and substantially” related to the operation, navigation, ownership, or business of the vessel itself in order for such individuals to not be considered as passengers under these provisions of law.
In the present case, we find that the proposed activities described in your request would be directly and substantially connected to the operation, navigation, ownership, or business of the vessel and we therefore 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 individuals 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,
Lisa L. Burley
Chief/Supervisory Attorney-Advisor
Cargo Security, Carriers and Restricted Merchandise Branch
Office of Trade, Regulations and Rulings