HQ 0110588 - Applicability of the Coastwise Passenger and Merchandise Transportation Statutes to the Operation of a Permanently Moored Floating Restaurant Located within the Territorial Waters of the United States - United States International Trade Commision Rulings

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HQ 110588
March 15, 1990

VES-3-CO:R:P:C: 110588 LLB

CATEGORY: CARRIER

Mr. Ed Jimenez
P.O. Box 21
South Gate, California 90280

RE: Applicability of the Coastwise Passenger and Merchandise Transportation Statutes to the Operation of a Permanently Moored Floating Restaurant Located within the Territorial Waters of the United States

Dear Mr. Jimenez:

Reference is made to your letter of October 18, 1989, in which you seek advice as to whether your proposed operation of a restaurant on a moored barge might be interpreted as engagement in the coastwise trade.

FACTS:

It is anticipated that you will operate a floating restau- rant aboard a barge in a permanently moored condition. The barge will be moored within "the City waters", at a spot not further identified. The inquiry is made as to whether such a use would be considered an employment in the coastwise trade.

ISSUE:

Do the coastwise trade laws prohibit the use of a non- qualified barge as the platform for a permanently moored restaurant facility within territorial waters.

LAW AND ANALYSIS:

Generally, the laws referred to as the coastwise laws (e.g., 46 U.S.C. App. 289 and 883, and 46 U.S.C. 12106, and 12110) prohibit the transportation of merchandise or passengers between points in the United States embraced within the coastwise laws by any vessel other than a vessel built in, properly documented under the laws of, and owned by citizens of the United States (i.e., a coastwise-qualified vessel). Points embraced within the coastwise laws include all points within the territorial and navigable waters of the United States. United States territorial waters 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.

The key, of course, is the provision of transportation between coastwise points. Customs has had occasion in the past to rule on the use of permanently moored vessels for various purposes. Here, as in the past, so long as the vessel remains in a stationary position there are no coastwise trade implications to its use.

It is not stated whether the barge is to be moored dockside, or out in a harbor, or otherwise. Please be advised that although the barge will not be in use in the coastwise trade, if it is necessary to transport persons or merchandise to the restaurant via boat from a coastwise point, the transporting vessel must be coastwise-qualified. This is because the restaurant itself would be considered a coastwise point by virtue of its location within territorial waters.

HOLDING:

The use of a barge to house a permanently moored restaurant facility within the U.S. territorial waters is not prohibited under the coastwise laws administered by the U.S. Customs Service.

Sincerely,

B. James Fritz

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