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HQ 110749
March 3, 1990

VES-5-02-CO:R:P:C 110749 LLB

CATEGORY: CARRIER

Mr. Richard L. Naughton
Southern Steam, Inc.
6621 Pacific Coast Highway, #150
Long Beach, California 90803

RE: Domestic Discharge of Cargo from the Vessel MV ASIAN SENATOR

Dear Sir:

Reference is made to your letter of January 2, 1990, which requests permission for the MV ASIAN SENATOR to temporarily discharge in the port of Long Beach its European laden cargo, originally intended for discharge in Cristobal, Panama.

FACTS:

Your letter states that the ASIAN SENATOR was anchored in the Panama Canal at Cristobal on December 20, 1989, the date that open military hostilities erupted between forces of the U.S. military and those of the Panama Defense Forces (PDF). You state that the vessel was boarded by members of the PDF and that U.S. military units drove them from the vessel by force, damaging the vessel in the process.

Following the retreat of the PDF from the vessel, U.S. military authorities ordered the vessel from the canal, denying permission to discharge 36 containers in Panama. The containers had been laden in Europe, with Cristobal, Panama being their intended destination.

Permission is now requested to discharge the containers in Long Beach, California, until such time as the next available eastbound vessel of the same line, the NEW YORK SENATOR, can retrieve them and take them to Panama.

ISSUE:

Whether Customs procedures will permit the temporary discharge at a U.S. port of cargo manifested for a foreign port.

LAW AND ANALYSIS:

We have determined that there are no coastwise transportation issues involved in the matter under consideration. The coastwise transportation merchandise statute, title 46, United States Code Appendix, section 883 (46 U.S.C. App., 883), prohibits the transportation of merchandise between two U.S. points on other than coastwise-qualified vessels. Since the containers in question were laden on the vessel in Europe, the statute has no application in this case.

As a vessel required to enter under section 441, Tariff Act of 1930, as amended (19 U.S.C. 1441), and section 4.3, Customs Regulations (19 CFR 4.3), it is required that the merchandise aboard the vessel be manifested in accord with section 431, Tariff Act of 1930, as amended (19 U.S.C. 1431), and section 4.7, Customs Regulations (19 CFR 4.7). The manifest is required to be available for presentation to the Customs boarding officer. Since the containers were originally intended and manifested for Panama discharge, it will be necessary for an amended manifest to be prepared in time for presentation upon arrival.

The procedures set forth in the Customs Regulations in sections 4.31 (Unlading or transshipment due to casualty), 4.32 (vessels in distress; landing of cargo) 4.33 (Diversion of cargo), or 4.34 (Prematurely discharged, overcarried, and undelivered cargo), may not be made applicable in the present circumstances. Instead, the procedures applicable to the direct exportation of unentered merchandise provided in section 18.25, Customs Regulations, should be utilized. These procedures require the posting of a bond, and the filing of an Export Declaration as provided for under section 30.3(a)(2) of the Foreign Trade Statistics Regulations (15 CFR 30.3(a)(2)). Your local Customs district office can assist in complying with these procedures.

HOLDING:

The vessel MV ASIAN SENATOR may discharge its foreign laden and foreign bound cargo in the port of Long Beach, California, upon condition that a proper manifest be presented upon demand. The procedures applicable to direct exportation (19 CFR 18.25) should be utilized at the time the cargo is reladen for exportation to Panama.

Sincerely,

B. James Fritz
Chief

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