HQ 0112370 - Coastwise Trade; Passengers; 46 U.S.C. app. 289; M/V GRUZIYA - United States International Trade Commision Rulings

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HQ 112370

July 20, 1992

VES-3-06-CO:R:IT:C 112370 MLR

CATEGORY: CARRIER

Captain Mato Bozovic
Odessa America Cruise Co.
170 Old Country Road
Suite 608
Mineola, New York 11501

RE: Coastwise Trade; Passengers; 46 U.S.C. app. 289; M/V GRUZIYA

Dear Mr. Bozovic:

This is in response to your facsimile dated July 1, 1992, requesting a ruling as to whether a proposed cruise itinerary is in compliance with 46 U.S.C. app. 289. Our ruling is set forth below.

FACTS:

As per our ruling HQ 112324 informing you that your proposed itinerary would be in violation of the passenger coastwise law, you have revised your itinerary. The revised cruise itinerary for the M/V GRUZIYA, a non-coastwise-qualified vessel is as follows:

Cruise Dates: October 11-27, 1992

PORT ARRIVAL DEPARTURE REMARKS

New York/New York ------ Sun. 10/11 Embark 03:00 PM Passengers

Newport News/Virginia Mon. 10/12 Mon. 10/12 (For Williamsburg) 10:00 AM 06:00 PM

At Sea Tue. 10/13

Charleston/ Wed. 10/14 Wed. 10/14
South Carolina 08:00 AM 06:00 PM

At Sea Thu. 10/15

At Sea Fri. 10/16
Port Antonio/Jamaica Sat. 10/17 Sat. 10/17 08:00 AM 06:00 PM

At Sea Sun. 10/18

Cartagena, Colombia Mon. 10/19 Mon. 10/19 08:00 AM 03:00 PM

Panama Canal Tue. 10/20 Tue. 10/20
(Semi Transit) 10:00 AM 10:00 PM

Limon/Costa Rica Wed. 10/21 Wed. 10/21
08:00 AM 10:00 PM

At Sea Thu. 10/22

At Sea Fri. 10/23

Belize City/Belize Sat. 10/24 Sat. 10/24
07:00 AM 06:00 PM

Cancun/Mexico Sun. 10/25 Sun. 10/25
08:00 AM 10:00 PM

At Sea Mon. 10/26

St. Petersburg/Florida Tue. 10/27 Disembark 08:00 AM Passengers

ISSUE:

Whether the transportation of passengers aboard a non- coastwise-qualified vessel on the itinerary described above constitutes a violation of 46 U.S.C. app. 289.

LAW AND ANALYSIS:

Title 46, United States Code Appendix, section 883 (the merchandise coastwise law often called the "Jones Act") prohibits the transportation of merchandise between United States coastwise points, either directly or via a foreign port, or for any part of the transportation, in any vessel other 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.

In interpreting section 883, Customs has ruled that a point in United States territorial waters is a point in the United States embraced within the coastwise laws. The territorial waters of the United States consist of the territorial sea, defined as the belt, 3 nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline, in cases where the baseline and the coastline differ.

Title 46, United States Code Appendix, section 289 (46 U.S.C. app. 289, the passenger coastwise law), prohibits the transportation of passengers between points embraced within the coastwise laws of the United States, either directly or by way of a foreign port, in a non-coastwise-qualified vessel (i.e., any vessel not built in and documented under the laws of the United States and owned by persons who are citizens of the United States). For purposes of section 289, "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)}.

The applicable Customs Regulations promulgated pursuant to 46 U.S.C. app. 289 are set forth in title 19, Code of Federal Regulations, section 4.80a (19 CFR 4.80a). Section 4.80a(b)(2), Customs Regulations {19 CFR 4.80a(b)(2)}, provides that a coastwise violation occurs if a passenger is on a voyage to one or more coastwise points and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks at a coastwise port other than the port of embarkation. Section 4.80a(b)(3), Customs Regulations {19 CFR 4.80a(b)(3)}, provides that no coastwise violation occurs if a passenger is on a voyage to one or more coastwise ports and a distant foreign port or ports (whether or not the voyage includes a nearby foreign port or ports) and the passenger disembarks at a coastwise port provided the passenger has proceeded with the vessel to a distant foreign port.

Section 4.80a(a)(3) of the Customs Regulations defines a distant foreign port as any foreign port that is not a nearby port. A nearby foreign port is defined as
any foreign port in North America, Central America, the Bermuda Islands, or the West Indies (including the Bahama Islands, but not including the Leeward Islands of the Netherlands Antilles, i.e., Aruba, Bonaire, and Curacao). A port in the U.S. Virgin Islands shall be treated as a nearby foreign port.

{19 CFR 4.80a(2)}. (See also 19 CFR 4.80a(a)(1) and (4) for the definitions of the terms "coastwise port", "embark", and "disembark," as those terms are used in the regulation.)

In regard to the proposed cruise itinerary, the transportation of a passenger from New York, New York, to St. Petersburg, Florida, would not constitute a violation of the passenger coastwise law because the passenger has made a voyage between coastwise points which includes a call at a "distant foreign port" (Cartagena, Colombia).

HOLDING:

The transportation of passengers aboard a non-coastwise- qualified vessel on the itinerary described above does not constitute a violation of 46 U.S.C. app. 289, in that the voyage includes a call at a "distant foreign port".

Sincerely,

B. James Fritz

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