VES-5-07-CO:R:P:C 111130 GV
Mr. Jeff Patrick
Marine Dept. Manager
Geo. S. Bush & Co., Inc.
Post Office Box 8829
Portland, Oregon 97208
RE: Bunkers; Entry; Report of Arrival; 19 U.S.C. 1433, 1441
Dear Mr. Patrick:
This is in response to your letter dated June 18, 1990,
regarding the ramifications of beginning a container carrier
service between the Far East and Cuba.
FACTS:
Your company has been approached by a container carrier in
Japan, with an inquiry regarding the ramifications of beginning a
service between the Far East and Cuba. They are concerned with
how a service such as this may effect this carrier as a whole and
in part, as per the following questions:
1) Could vessels operating between Cuba and the Far East
bunker at a United States port? Would there be
additional requirements, beyond the standard requirements,
for any other vessel arriving from a foreign port for
bunkers only?
2) Providing that none of the cargo on board the vessel was
of U.S. origin, either all or in part, would the United
States be concerned about the transshipment of such cargo
which takes place in third countries, for vessels that do
not touch in United States ports?
3) Would there be any retaliatory action of our U.S.
services for operating a service such as this?
ISSUES:
1. Whether foreign-flag vessels operating between the Far
East and Cuba may bunker at a United States port.
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2. Whether any laws and regulations administered by the
U.S. Customs Service would prohibit the transshipment of foreign-
origin cargo in third countries for vessels operating between
the Far East and Cuba if the vessels do not touch in United
States ports.
3. Whether there would be any retaliatory action of the
U.S. armed forces for the operation of a foreign-flag vessel in
service between the Far East and Cuba.
LAW AND ANALYSIS:
Title 19, United States Code, section 1441, exempts certain
classes of vessels from the Customs formal entry requirements.
The statute provides an exemption for:
(4) Vessels arriving in distress or for the purpose
of taking on bunker coal, bunker oil, sea stores, or
ship's stores and which shall depart within twenty-
four hours after arrival without having landed or
taken on board any passengers, or any merchandise other
than bunker coal, bunker oil, sea stores, or ship's
stores: Provided, that the master, owner, or agent
of such vessel shall report under oath to the
appropriate customs officer the hour and date of
arrival and departure and the quantity of bunker
coal, bunker oil, sea stores, or ship's stores taken
on board.
Accordingly, in regard to your first question, as long as
the foreign-flag vessel operating between the Far East and Cuba
arrives in the U.S. only to take on bunkers it need not go
through formal entry procedures provided it departs within 24
hours.
It should be noted, however, that even though the subject
vessel is not required to make entry in the above-stated
circumstances, pursuant to title 19, United States Code, section
1433(a)(1)(A) (19 U.S.C. 1433(a)(1)(A)) the master of the vessel
must still immediately report the vessel's arrival to Customs at
the nearest Customs facility. Arrival is defined in section
4.2(b), Customs Regulations (19 CFR 4.2(b)), as follows:
...the time of arrival of a vessel shall
be that time when she first comes to rest,
whether at anchor or at a dock, in any harbor
within the Customs territory of the United
States.
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The report of arrival may, by regulation, be made by any
means of communication (section 4.2(a), Customs Regulations (19
CFR 4.2(a)). Should the vessel remain in port for longer than
the specified 24-hour period, formal entry would have to be made
with the local Customs office.
We assume from your letter that the vessel in question is
Japanese-flagged. Should the vessel be registered under the
flag of another foreign country, you should know that the U.S.
Coast Guard imposes various additional requirements and/or
prohibitions regarding the entry into U.S. ports of vessels
registered to, owned or operated by, chartered by or crewed from
certain communist countries (e.g., People's Republic of China).
We suggest you contact that agency regarding these requirements.
In regard to your second question, no law administered by
the Customs Service would prohibit such an activity. The laws
and regulations administered by the Customs Service would only
come into play in the event the vessel entered a port within the
Customs territory of the United States (defined in section
101.1(e), Customs Regulations to include only the States, the
District of Columbia, and Puerto Rico), and/or the cargo entered
the commerce of the United States.
Your third and final question refers to an area beyond the
jurisdiction of the Customs Service. We suggest you contact the
U.S. armed forces, specifically the U.S. Coast Guard, regarding
this matter.
HOLDINGS:
1. Foreign-flag vessels operating between the Far East and
Cuba may bunker at a United States port without making formal
Customs entry pursuant to 19 U.S.C. 1441(4).
2. The laws and regulations administered by the U.S.
Customs Service would not prohibit the transshipment of foreign-
origin cargo in third countries for vessels operating between
the Far East and Cuba if the vessels do not touch in United
States ports.
3. Whether there would be any retaliatory action of the
U.S. armed forces for the operation of a foreign-flag vessel in
service between the Far East and Cuba is outside the jurisdiction
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of the U.S. Customs Service. We suggest you contact the U.S.
armed forces, specifically the U.S. Coast Guard, regarding this
matter.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch