VES-3-02-RR:IT:EC 227013 CC
Cynthia L. Valli
P.O. Box 6997
San Diego, CA 92166
RE: Voyage to Nowhere; Coastwise Trade; 46 U.S.C. App. 289
Dear Ms. Valli:
This is in response to your letter, a follow-up to our
letter of May 3, 1996, 226740, concerning the voyage of your
vessel "EOLO."
FACTS:
You state that the EOLO will be operated under a license of
uninspected passenger vessels (6 passengers or less). Passengers
(6 or less) continuously will embark (up to 2 voyages per day, up
to 5 days per week) the EOLO at a United States point. The EOLO
will proceed seaward beyond the three-mile territorial U.S. limit
and return to same U.S. point of embarkation. The passengers
will not go ashore, even temporarily, at any other coastwise
point or engage in any charter party fishing. You request that
we issue an endorsement to permit you to engage in the above-described voyages.
ISSUE:
Whether the transportation of the passengers in the subject
vessel is a voyage to nowhere and therefore not in violation of
46 U.S.C. App. 289?
LAW AND ANALYSIS:
46 U.S.C. App. 289, the passenger coastwise law, prohibits
the transportation of passengers between points embraced within
the coastwise laws of the United States, either directly or by
way of a foreign port, in a non-coastwise-qualified vessel (i.e.,
any vessel not built in and documented under the laws of the
United States and owned by persons who are citizens of the United
States). For purposes of 46 U.S.C. App. 289, the term
passenger is defined as "... any person carried on a vessel who
is not connected with the operation of such vessel, her
navigation, ownership, or business." 19 CFR 4.50(b).
In interpreting the coastwise laws (i.e., 46 U.S.C. App.
289, 883) Customs has ruled that a point in the United States
territorial waters is a point in the United States embraced
within the coastwise laws. The territorial waters of the United
States consist of the territorial sea, defined as the belt, 3
nautical miles wide, seaward of the territorial sea baseline, and
to points located in internal waters, landward of the territorial
sea baseline, in cases where the baseline and coastline differ.
In its administration of 46 U.S.C. App. 289, the Customs
Service has ruled that the carriage of passengers entirely within
territorial waters, even though the passengers disembark at their
point of embarkation and the vessel touches no other coastwise
point, is considered coastwise trade subject to the coastwise
laws. However, the transportation of passengers to the high seas
(i.e., beyond the 3 mile territorial sea) and back to the point
of embarkation, assuming the passengers do not go ashore, even
temporarily, at another United States point, often called a
"voyage to nowhere," is not considered coastwise trade. 29
O.A.G. 318 (1912).
Concerning the proposed use of the EOLO, the transportation
of passengers from a U.S. point to international waters (i.e.,
beyond the 3 mile territorial sea) and back to the point of
embarkation, without the passengers disembarking, would
constitute a voyage to nowhere. Consequently, such a use of the
vessel would not violate 46 U.S.C. App. 289.
Concerning your request that an endorsement be issued to
permit the above-described use of the vessel, we are uncertain as
to the nature of your request. We note that an endorsement for
coastwise trade permits a vessel to be used to transport persons
or merchandise from one coastwise point to another. Since the
use of your vessel as described above will not constitute
coastwise trade, a coastwise endorsement would not be necessary.
In any event, since the vessel documentation laws of the United
States are administered by the U.S. Coast Guard, we defer to that
agency concerning their certification requirements.
HOLDING:
The transportation of the passengers in the subject vessel
is a voyage to nowhere and therefore is not in violation of 46
U.S.C. App. 289.
Sincerely,
Acting Chief
Entry and Carrier Rulings Branch