VES-2/VES-3-24-CO:R:P:C 110350 RAH
Mr. Christopher Cummins
Operations Manager
Fritz Maritime Agencies
3601 N.W. Yeon Avenue
Portland, Oregon 97210
RE: 46 U.S.C. 883
Dear Mr. Cummins:
This is in response to your letter of July 10, 1989,
requesting exemption from Title 46, United States Code, section
883.
FACTS:
In your letter, you state that the Norwegian-flag vessel,
the NOMADIC SAILOR, will discharge a cargo of cement in
Los Angeles, California, and proceed to Portland, Oregon, to load
wheat to be taken to the Philippines. You request exemption from
the above statute so that you may purchase a high pressure water
pump in Los Angeles to clean the cargo holds while enroute to
Portland, and to land the pump in Portland after the cleaning is
completed.
ISSUE:
Under what circumstances will a waiver of the coastwise
laws be granted?
LAW AND ANALYSIS:
Title 46, United States Code, section 883, provides in
pertinent part that, "no merchandise shall be transported ...
between points in the United States, including Districts,
Territories and possessions thereof embraced within the coastwise
laws, either directly or via a foreign port, or for any part of
the transportation, in any other vessel than a vessel built in
and documented under the laws of the United States..."
Additionally, Title 19, Code of Federal Regulations, section
4.80b(a) states in part: "A coastwise transportation of
merchandise takes place, within the meaning of the coastwise
laws, when merchandise laden at a point embraced within the
coastwise laws ("coastwise point") is unladen at another
coastwise point, regardless of the origin or ultimate destination
of the merchandise."
The coastwise laws including 46 U.S.C. 883 can only be
waived under the authority provided by the Act of December 27,
1950 (64 Stat. 1120; note preceding 46 U.S.C. App. 1). This
statute provides that "[t]he head of each department or agency
responsible for the administration of the navigation and vessel
inspection laws is directed to waive compliance with such laws
upon the request of the Secretary of Defense [and] [t]he head of
such department or agency is authorized to waive compliance with
such laws... either upon his own initiative or upon the written
recommendation of the head of any Government agency whenever he
deems that such action is in the interest of national defense."
This is not the type of case which qualifies for a waiver of
the coastwise laws and therefore, your request is denied.
HOLDING:
The coastwise laws prohibit the transportation of
merchandise between points in the United States in a foreign-flag
vessel, and such laws can only be waived in the interest of
national defense.
If you have any further questions regarding this matter,
please do not hesitate to contact our office.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch