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HQ 111896


September 23, 1991

VES-3-02/07-CO:R:IT:C 111896 GEV

CATEGORY: CARRIER

Lisa Limbaugh
Alaska Maritime Agencies, Inc.
Post Office Box 536
Dutch Harbor, Alaska 99692

RE: Coastwise Trade; Pilot Training; 46 U.S.C. App. 289

Dear Ms. Limbaugh:

This is in response to your letter dated September 12, 1991, requesting a ruling regarding the training of pilots in Alaskan waters. You reference a previous letter to the Assistant District Director, U.S. Customs in Anchorage, dated August 22, 1991, on this matter and his response. Our ruling on this matter is set forth below.

FACTS:

Alaska Maritime Agencies, Inc., in an effort to assist members of the Alaska Marine Pilots Association in receiving their required training in order to obtain U.S. Coast Guard pilotage licenses to transit various remote Alaskan ports, proposes to charter a foreign-flag vessel during October 1991 for approximately 7 to 10 days. During this period approximately 13 members of the Alaska Marine Pilots Association will be on board the vessel for training purposes. In addition, the U.S. Coast Guard is planning to have an observer on board during this same time for verification of the training exercises.

The area that is to be covered will be mainly central Alaska including Prince William Sound, portions of Cook Inlet and Kodiak Island. The vessel will be transiting as many areas as possible during this period so that proper training and education of the area's waters and ports can be accomplished.

ISSUE:

Whether the use of a foreign-flag vessel in training persons in the transiting of various United States waters and ports so that they may obtain their U.S. Coast Guard pilotage licenses is a use in the coastwise trade in violation of 46 U.S.C. App. 289.

LAW AND ANALYSIS:

Title 46, United States Code Appendix, section 289 (the passenger coastwise law), as interpreted by the Customs Service, prohibits the transportation of passengers between points embraced within the coastwise laws, either directly or by way of a foreign port, in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. Pursuant to section 4.50(b), Customs Regulations (19 CFR 4.50(b)), the word "passenger," for purposes of this provision, is defined as "...any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business."

In our interpretation of section 289, we have held that a person transported on a vessel as a student in courses such as oceanography or sailing and seamanship, when the presence of that person is required on board the vessel as a part of his or her course or training, is not a passenger, for purposes of the coastwise laws. Analogously, we have held that when a person is transported on a vessel over the route for which he or she is a pilot candidate for the purpose of observing in order to obtain his or her pilotage license, that person is not considered a passenger for purposes of the coastwise laws. (Customs Rulings 108589, dated September 23, 1986, and 110985, dated August 8, 1990).

Accordingly, notwithstanding the letter dated September 4, 1991, from the District Director, U.S. Customs Service, Anchorage, Alaska, on this matter, the use of the foreign-flag vessel under consideration in Alaskan waters for the purpose of training persons so that they may obtain their pilotage licence is not a violation of 46 U.S.C. App. 289.

HOLDING:

The use of a foreign-flag vessel in training persons in the transiting of various United States waters and ports so that they may obtaining their U.S. Coast Guard pilotage licenses is not a use in the coastwise trade in violation of 46 U.S.C. App. 289.

Sincerely,

B. James Fritz

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