HQ 0112190 - Applicability of the coastwise laws to the use of a historic vessel as a moored attraction; REGINA MARIS. - United States International Trade Commision Rulings

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HQ 112190

May 21, 1992

VES-3-04 CO:R:IT:C 112190 MLR

CATEGORY: CARRIER

Merlon E. Wiggin
Peconic Associates, Inc.
One Bootleg Alley
P.O. Box 672
Greenport, NY 11944

RE: Applicability of the coastwise laws to the use of a historic vessel as a moored attraction; REGINA MARIS.

Dear Mr. Wiggin:

This is in reference to your letter of March 27, 1992, in which you seek advice on behalf of Save The Regina Maris, Ltd., as to the proposed use of a historic vessel as a moored attraction.

FACTS:

Save The Regina Maris, Ltd., the owner of the REGINA MARIS, is seeking the U.S. Coast Guard's certification of the vessel as a moored attraction, and U.S. Customs endorsement. Save The Regina Maris, Ltd., has restored the vessel, which was built in Denmark. It is anticipated that the vessel will primarily be maintained at the Maritime Museum dock in Greenport, New York, in the winter, and moved between that location and the Main Street dock for use as a moored attraction in the spring, summer, and fall. The vessel may also travel to the Long Wharf in Sag Harbor at least once during the Summer season. Initially, the vessel will be moved by tug until its existing power plant can be replaced or rebuilt. The vessel will not carry passengers or freight between any ports on the coast, and the only time that the public will be aboard is when it is tied up to a berth.

ISSUE:

Are there any restrictions imposed by the U.S. Customs laws on the use of a historic vessel as a moored attraction in the territorial waters of the United States.

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). The passenger coastwise law, 46 U.S.C. App. 289, provides that:

No foreign vessel shall transport passengers between ports or places in the United States either directly or by way of a foreign port, under penalty of $200 for each passenger so transported and landed.

For purposes of the coastwise laws, a vessel "passenger" is defined as "... any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business." (19 CFR 4.50(b)).

In interpreting the coastwise laws as applied to the transportation of passengers, we have ruled that the carriage of passengers entirely within territorial waters, even though they disembark at their point of embarkation and the vessel touches no other point, is considered coastwise trade subject to the coastwise laws. The transportation of passengers to the high seas or foreign waters and back to the point of embarkation, often called a "voyage to nowhere," is not considered coastwise trade, assuming the passengers do not go ashore, even temporarily, at another coastwise point.

Points in the United States embraced within the coastwise laws include points in the territorial waters of the United States (defined as the belt, three nautical miles wide, adjacent to the coast of the United States and seaward of the territorial sea baseline) and points located in internal waters (those waters landward of the territorial sea baseline, in cases where the baseline and the coastline differ).

The coastwise law pertaining to the transportation of merchandise, 46 U.S.C. app. 883 (often called the "Jones Act"), provides, in pertinent part, that:

No merchandise shall be transported by water, or by land and water, on penalty of forfeiture of the merchandise (or a monetary amount up to the value thereof as determined by the Secretary of the Treasury, or the actual cost of the transportation, whichever is greater, to be recovered from any consignor, seller, owner, importer, consignee, agent or other person or persons so transporting or causing said merchandise to be transported), between points in the United States... embraced within the coastwise laws, either directly or via a foreign port, or for any part of the transportation, in any other vessel 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 ....

"Merchandise" is defined in 19 U.S.C. 1401(c), as "goods, wares, and chattels of every description, and includes merchandise the importation of which is prohibited...."

It has been mentioned that the vessel will move between the Maritime Museum dock in Greenport, New York, and the Main Street dock, and that the vessel possibly will travel to the Long Wharf in Sag Harbor. The key to the coastwise laws, is the provision of transportation between coastwise points. No law or regulation administered by the United States Customs Service would preclude the use of the subject vessel as a moored attraction, so long as the vessel remains in a stationary position. However, please be advised that although the vessel will not be in use in the coastwise trade when it is moored to the dock, if it is necessary to transport passengers or merchandise to the REGINA MARIS via another vessel from a coastwise point, the transporting vessel must be coastwise-qualified. This is because the REGINA MARIS itself would be considered a coastwise point by virtue of its location within territorial waters. Further, no passengers or merchandise may be embarked/laden, for example, at the Maritime Museum dock and disembarked/unladen at the Main Street dock.

We emphasize that this ruling letter is to be applied only with respect to transaction involving operations identical to those set forth in this ruling letter. 19 CFR 177.9(b)(4). Furthermore, although the Customs Service determines whether an activity constitutes an engagement in the coastwise trade as discussed above, the documentation of vessels under the laws of the United States is solely within the jurisdiction of the U.S. Coast Guard.

HOLDING:

The use of a historic vessel as a moored attraction 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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