VES-3-02:OT:RR:BSTC:CCI H140900 ALS

Mr. Olaf Schroeder
Schlussel Reederei KG (GmbH & Company)
Am Wall 58/60
Bremen, Germany 28195

RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR 4.50(b)

Dear Mr. Schroeder:

This letter is in response to your request, which we received on January 4, 2011, with respect to the coastwise transportation of an individual. Our ruling is set forth below.

FACTS:

You ask whether an individual may be transported on the non-coastwise qualified M/V MSC SCANDINAVIA (the "vessel"), round trip originating in New York, New York, with intervening stops in Baltimore, Maryland and Savannah, Georgia. The individual will embark in on or about January 11, 2011, and disembark on or about January 16, 2011. The individual will be onboard the vessel for the purpose of inspecting the vessel’s maintenance certificates and conduct appraisal interviews with the vessel’s crew.

ISSUE:

Whether the subject individual is a "passenger" within the meaning of 46 U.S.C. § 55103 and 19 CFR 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 (recodified by Pub. L. 109-304, enacted on October 6, 2006) and provides that:

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

is wholly owned by citizens of the United States for purposes of engaging in the coastwise traffic; and

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.

Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed.

Section 4.50(b), Customs and Border Protection (CBP) Regulations (19 CFR 4.50(b)) provides as follows:

A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.

In the present case, you state that the subject individual will be transported on the vessel for the purpose of inspecting the vessel’s maintenance certificates and conduct appraisal interviews with the vessel’s crew. You also propose an itinerary that would have the individual embarking in New York, New York and then disembarking at the same coastwise point. With such as the case, section 55103 would not apply because the trip does not involve transportation between two different coastwise points. Therefore, the proposed transportation of the individual in this case is not in violation of 46 U.S.C. § 55103.

HOLDING:

The proposed transportation of the individual in this case is not in violation of 46 U.S.C. § 55103 because it does not involve transportation between two different coastwise points.

Sincerely,

George Frederick McCray
Supervisory Attorney-Advisor/Chief
Cargo Security, Carriers and Immigration Branch
Office of International Trade, Regulations & Rulings
U.S. Customs and Border Protection