HQ 0110392 - Applicability of coastwise merchandise law, 46 U.S.C. App. 883, to proposed carriage of cable by a foreign-built vessel - United States International Trade Commision Rulings

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HQ 110392

September 27, 1989

VES-3-06-CO:R:P:C 110392 BEW

CATEGORY: CARRIER

Mr. Kevin Flynn
Westrex Transportation Inc.
Post Office Box 792
Dover, New Jersey 07802

RE: Applicability of coastwise merchandise law, 46 U.S.C. App. 883, to proposed carriage of cable by a foreign-built vessel

Dear Mr. Flynn:

FACTS:

This is in response to your letter of July 26, 1989, concerning the transportation of cable from Portsmouth, New Hampshire, on the C.S. LONG LINES (a U.S. flag non-coastwise- qualified-vessel) to Guam for transfer to a Japanese-flag vessel for transportation to Yokohama, Japan. You state that you are planning to discharge the cable at dockside in Guam to the Japanese vessel, that is under exclusive charter to Transoceanic Cable Ship Company, the owner of C. S. Long Lines.

ISSUE:

Whether the carriage of cable by a U. S.-flag foreign-built cable-laying and repair vessel from its point of lading in the United States to Guam where it will be unladed directly onto Japanese-flag for transportation to Japan constitutes a violation of 46 U.S.C. App. 883.

LAW AND ANALYSIS:

Title 46, United States Code, Appendix 883 (46 U.S.C. App. 883), provides, in pertinent part, that no merchandise shall 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 vessel other than a vessel built in and documented under the laws of the United States and owned by citizens of the United States (i.e., a coastwise- qualified vessel).

Pursuant to 46 U.S.C. App. 877, the coastwise laws are applicable to Guam. Under 46 U.S.C. 12105(b), a vessel for which a U. S. registry is issued may be employed in foreign trade or trade with Guam. Customs, accordingly, has long held that foreign-built vessels admitted to registry may engage in trade between United States coastwise points and Guam. Passengers and merchandise may, therefore, be transported between United Stated coastwise points and Guam on a foreign-built United States-flag vessel.

Accordingly, the proposal as stated above would not violate the coastwise laws provided the C.S. LONG LINES has been issued a registry by the United States Coast Guard.

HOLDING:

The carriage of cable by the C.S. LONG LINES (a non- coastwise-qualified vessel) from New Hampshire (the point of lading) to Guam (the point of unlading) is not prohibited under 46 U.S.C. App. 883 provided the vessel has been issued a registry Zunder 46 U.S.C. 12105(b).

Sincerely,

B. James Fritz

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