HQ 0111725 - Clearance; Permit to Proceed; Permission to Depart; Puerto Rico; Noncontiguous Territory; 19 C.F.R. 4.81(a); 19 C.F.R. 4.84(c); 19 C.F.R. 4.87. - United States International Trade Commision Rulings

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HQ 111725

December 3, 1991

VES-5-14/5-29/5-30 CO:R:IT:C 111725 JBW

CATEGORY: CARRIER

Mr. Lucien H. Bliss
Manager Corporate Documentation
Puerto Rico Marine Management, Inc.
P. O. Box 3170, Raritan Plaza I
Edison, New Jersey 08818

RE: Clearance; Permit to Proceed; Permission to Depart; Puerto Rico; Noncontiguous Territory; 19 C.F.R. 4.81(a); 19 C.F.R. 4.84(c); 19 C.F.R. 4.87.

Dear Mr. Bliss:

This letter is in response to your letter of June 3, 1991, in which you request a ruling on the clearance requirements for United States-registered vessels bound for a foreign port via a port in Puerto Rico. You do not identify the ships involved; neither do we know whether the vessel under discussion is qualified to engage in the coastwise trade.

FACTS:

Naiveras de Puerto Rico is a United States-flag carrier that principally operates ships in the coastwise trade. However, on a weekly basis, a ship sails from New Orleans bound for Rio Haina, Dominican Republic, with a stop in San Juan, Puerto Rico. The vessel carries cargo laden in New Orleans that is bound for both San Juan and Rio Haina. The ship also loads cargo in San Juan bound for Rio Haina and other United States ports.

ISSUE:

Whether a United States-flag vessel must obtain clearance in New Orleans if that vessel loads cargo in New Orleans bound for the Dominican Republic and makes an intermediate stop in Puerto Rico for loading and unloading cargo.

LAW AND ANALYSIS:

Section 4.82 of the Customs Regulations provide rules to govern clearance of United States vessels documented with a coastwise license or registry endorsement and touching at a foreign port while in the coastwise trade. These rules require that such vessels "obtain a permit to proceed or clearance at each port of lading in the United States for the foreign port or ports at which it is intended to touch." 19 C.F.R. 4.82(a) (1991). The regulations provide that only foreign destined cargo must appear on the Cargo Declaration Outward with Commercial Forms (Customs Form 1302-A). Id. The master must also present a coastwise Cargo Declaration, if applicable, for merchandise to be transported via the foreign port or ports to subsequent United States ports. 19 C.F.R. 4.82(b).

The Customs Regulations further provide rules to govern clearance of United States vessels documented with a registry that are destined for a foreign port with stops to load merchandise or passengers at intermediate United States ports. 19 C.F.R. 4.87. These rules require that the master of a vessel bound for a foreign port file at each port of lading a General Declaration and a Cargo Declaration Outward with Commercial Forms of all cargo laden for export at that port in accordance with 19 C.F.R. 4.63(a). After meeting the requirements for clearance of 19 C.F.R. 4.61, the district director shall grant a permit to proceed for the vessel to move to the next domestic port. 19 C.F.R. 4.87(c). Clearance at the last domestic port will be according to the foreign clearance requirements, contained in 19 C.F.R. 4.60 to 4.75. 19 C.F.R. 4.87(e). The Customs Service has ruled that vessels of the United States should comply with these requirements. C.S.D. 79-439, 13 Cust. B. & Dec. 1672 (1979); see C.S.D. 82-8, 16 Cust. B. & Dec. 684, 685 (1982); Headquarters Ruling Letter 105434, dated May 24, 1982. However, no penalty may be applied for noncompliance by United States vessels; these requirements have been determined to be "advisory" when applied to United States vessels. Id.

When transporting merchandise to a port in a noncontiguous territory, United States vessels are not required to clear, see Pub. L. No. 87-826, 76 Stat. 951 (1962), but the masters of such vessels must file a complete manifest, if required by Bureau of the Census regulations, and all required shipper's export declarations before permission to depart may be granted. 19 C.F.R. 4.84(c). Permission to depart prior to the filing of these documents may be granted if the carrier files an approved bond to cover timely production of these documents. Id. In the latter case, a complete manifest, if required, and all required shipper's export declarations must be filed within seven working days after departure. 15 C.F.R. 30.24(a)(1) (1991).

You state in your letter that you do not believe that your vessel is required to clear from New Orleans. From the above discussion, we agree that your vessel, which is a United States- flag vessel, is not required to clear when leaving New Orleans for San Juan. However, prior to departing from New Orleans, you must file a Cargo Declaration Outward with Commercial Forms (Customs Form 1302-A) for foreign destined cargo and should obtain a permit to proceed. Further, because the vessel itinerary calls for unloading cargo in Puerto Rico, you must file a complete manifest, if required by Bureau of the Census regulations, and all required shipper's export declarations, unless you file an approved bond to cover production of these documents within seven working days. Clearance will be required at the time the vessel departs from Puerto Rico for the Dominican Republic. 46 U.S.C. App. 91; 19 C.F.R. 4.60.

HOLDING:

A United States-flag vessel is not required to obtain clearance in New Orleans if that vessel loads cargo in New Orleans bound for the Dominican Republic and makes an intermediate stop in Puerto Rico. A permit to proceed should be obtained at all ports where foreign destined cargo is loaded. Moreover, before permission to depart for Puerto Rico may be granted, a complete manifest, if required by Bureau of the Census regulations, and all required shipper's export declarations must be presented, unless the carrier files an approved bond to cover production of these documents within seven working days after departure. Clearance will be required at the time the vessel departs from Puerto Rico for the Dominican Republic.

Sincerely,

B. James Fritz
Chief

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