HQ 0110364 - Applicability of the coastwise laws to the use of a non-coastwise-qualified oceanographic research vessel in the exploration for oil and gas by means of Seismograph methods in the Cooke Inlet Area of Alaska. - United States International Trade Commision Rulings

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HQ 110364

September 29, 1989

VES-3-14 CO:R:P:C 110364 BEW

CATEGORY: CARRIER

Mr. Cary L. Epley
Digicon Geophysical Corporation
Land Field Service
12333-D Sowden Road
Houston, Texas 77080

RE: Applicability of the coastwise laws to the use of a non-coastwise-qualified oceanographic research vessel in the exploration for oil and gas by means of Seismograph methods in the Cooke Inlet Area of Alaska.

Dear Mr. Epley:

This is in response to your letter of July 10, 1989, requesting a ruling on the applicability of the coastwise laws to the use of a (9) smaller barge pods, interlocked together to form one barge.

FACTS:

You state the barge will be powered by two outdrives, and will have several pieces of equipment mounted on the barge itself. You state that the vessel measurements of the barge are 30' wide, 60' long, 5' high. You state that the barge will be used for research purposes. Your letter asks for a confirmation of your understanding of the coastwise laws which were discussed telephonically with Paul Hegland of my staff on July 5, 1989. You also ask whether the barge has to be admeasured or inspected since it is going to be used for research purposes.

ISSUE:

May a non-coastwise-qualified barge vessel be used as a seismograph vessel for research purposes in the Cooke Inlet Area of Alaska without violating the coastwise laws?

LAW AND ANALYSIS:

The coastwise law pertaining to the transportation of passengers, the Act of June 19, 1886, as amended (24 Stat. 81; 46 U.S.C. App. 289), provides that:

No foreign vessel shall transport passengers between ports or places in the United States either directly or by way of a foreign port, under a penalty of $200 for each passenger so transported and landed.

The coastwise law pertaining to the transportation of merchandise, section 27 of the Act of June 5, 1920, as amended (41 Stat. 999; 46 U.S.C. App. 883, often called the Jones Act), provides that:

No merchandise shall be transported by water, or by land and water, on penalty of forfeiture of the merchandise (or a monetary amount up to the value thereof as determined by the Secretary of the Treasury, or the actual cost of the transportation, whichever is greater, to be recovered from any consignor, seller, owner, importer, consignee, agent, or other person or persons so trans-porting or causing said merchandise to be transported), between points in the United States ... 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 and owned by persons who are citizens of the United States ....

For purposes of the coastwise laws, a point in United States territorial waters is considered a point 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, adjacent to the coast of the United States and seaward of the territorial sea baseline.

For purposes of section 289, "passenger" is defined in section 4.50(b), Customs Regulations (19 CFR 4.50(b)), as "... any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business." "Merchandise," as used in section 883, includes any article, including valueless merchandise pursuant to the recent amendment of section 883 by the Act of June 7, 1988 (Public Law 100-329; 102 Stat. 588).

It its interpretation of the coastwise laws with regard to the issue under consideration, Customs has long held that the use of a vessel solely to engage in oceanographic research is not a use in the coastwise trade. We have held that the use of non- coastwise-qualified vessels to engage in oceanographic research, including the transportation of persons participating in the research from, to, and between research sites in United States territorial waters, whether or not the persons participating in the research temporarily leave the vessels at the research sites, would not violate the coastwise laws. We have held that the collection of marine specimens at the research sites and the transportation of those specimens from the research sites to points in the United States would not violate the coastwise laws. Of course, if such a vessel transported between coastwise points, or provided part of the transportation between coastwise points of, any persons other than the vessel crew and scientists and students engaged in the oceanographic research or any merchandise other than the usual supplies and equipment necessary for that research and/or research specimens or samples, the coastwise laws would be violated.

We believe that this interpretation of the coastwise laws is buttressed by the Act of July 30, 1965 (Public Law 89-99; 79 Stat. 424; 46 U.S.C. App. 441-444, often called the Oceanic Research Vessel Act), as amended, section 3 (46 U.S.C. App. 443) of which provides that "An oceanic research vessel shall not be deemed to be engaged in trade or commerce." This Act, in defin- ing the term "oceanographic research vessel," defines oceano- graphic research as "... including, but not limited to, such studies pertaining to the sea as seismic, gravity meter and magnetic exploration and other marine geophysical or geological surveys, atmospheric research, and biological research" (46 U.S.C. App. 441(1)).

From the facts given, we cannot determine whether the barge pods were built foreign or built in the United States. Under the above provisions a foreign-built vessel is prohibited from engaging in the coastwise trade. However, we conclude that the use of the vessel as described, to collect and do laboratory work on data and samples for oil and gas exploration from the Cooke Inlet Area on the Alaskan coast, is considered oceanographic research. The transportation of the scientists who collect and work on the data and samples to, from, and between collection sites in United States territorial waters in the vessel under consideration would not violate the coastwise laws. Neither would the transportation of the samples collected from the points where they are brought onto the vessel to the shore violate the coastwise laws. A non-coastwise-qualified vessel would, of
course, be prohibited from transporting between coastwise points passengers (i.e., not including the scientists or vessel crew) and/or merchandise other than the samples or the usual supplies and equipment necessary for the research.

Matters relating to admeasurement, inspection and the determination of a build for a vessel for documentation purposes are administered by the United States Coast Guard. Your questions relating to these issues should be directed to the following office:

Chief, Documentation Branch
United States Coast Guard (G-MVI-6/13)
2100 Second Street, SW
Washington, D. C. 20593

HOLDING:

A non-coastwise-qualified barge vessel may be used as a seismograph vessel for research purposes in the Cooke Inlet Area of Alaska without violating the coastwise laws.

Sincerely,

B. James Fritz

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