HQ 0111232 - Coastwise; Passengers; Northern Mariana Islands; CNMI; 46 U.S.C. App. 289; 46 U.S.C. App. 883. - United States International Trade Commision Rulings

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HQ 111232

September 25, 1990

VES-3-02 CO:R:P:C 111232 JBW

CATEGORY: CARRIER

Elizabeth Robertson, Esquire
Klemm, Blair, Sterling & Johnson
Suite 1008 Pacific News Building
238 Archbishop F.C. Flores Street
Agana, Guam 96910

RE: Coastwise; Passengers; Northern Mariana Islands; CNMI; 46 U.S.C. App. 289; 46 U.S.C. App. 883.

Dear Ms. Robertson:

This letter is in response to your inquiry of August 7, 1990, written on behalf of Islands Cruise Line, Inc., in which you request a ruling regarding the applicability of the coastwise laws, 46 U.S.C. App. 289 & 883 (1988), or other applicable maritime laws to the Commonwealth of the Northern Mariana Islands (CNMI).

FACTS:

As stated in your letter, the contemplated activity involves the use of a vessel to transport passengers between points in Saipan, CNMI. The vessel to be used in the operation is foreign-built and will be owned by a corporation to be organized under the laws of Guam or Saipan. The chairman of the board of directors and chief executive officer of the corporation will be citizens of the United States, as will be a majority of the corportate directors. Most of the stock will be owned by citizens of Japan.

ISSUE:

Whether the coastwise laws or other maritime laws administered by the Customs Service prohibit a non-coastwise- qualified vessel from transporting passengers between points in the CNMI.

LAW AND ANALYSIS:

Sections 289 and 883 of Title 46, Appendix, United States Code, 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 and documented under the laws of the United States and owned by persons who are citizens of the United States. The Customs Service has consistently interpreted this proscription to apply to any vessel except a United States built, owned, and properly documented vessel. See 46 U.S.C.A. 12106 & 12110 (West Supp. 1990), 46 U.S.C. App. 289, and 19 C.F.R. 4.80(a) (1990). As described, the vessel under consideration is not coastwise- qualified, for it is foriegn-built.

Sections 502(b) and 503(b) of the "Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America," Pub. L. No. 94-241, as amended, 90 Stat. 263 (1976) (48 U.S.C.A. 1681 note (1987)), provide in part that, except for activities of the United States Government and its contractors in the CNMI, the coastwise laws do not apply to the CNMI. Consequently, the coastwise laws, described above, would not prohibit the use of a non-coastwise-qualified vessel from transporting passengers between points in the CNMI. Moreover, no other law administered by the Customs Service prohibits such activity.

HOLDING:

Neither the coastwise laws nor other maritime laws administered by the Customs Service prohibit a non-coastwise- qualified vessel from transporting passengers between points in the CNMI.

Sincerely,

B. James Fritz
Chief

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