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HQ 112830


August 12, 1993

VES-3-14-CO:R:IT:C 112830 DEC

CATEGORY: CARRIER

Mr. Earl P. Verrett
Conventional Manager
P.O. Drawer 51789
Aries Marine Corporation
Lafayette Louisiana 70505

RE: Applicability of the coastwise laws to the use of a non- coastwise-qualified oceanographic research vessel.

Dear Mr. Verrett:

Reference is made to your facsimile transmittal of August 10, 1993, in which you inquired as to the legality of utilizing a foreign-built vessel in your scientific research operations.

FACTS:

The Aries Marine Corporation operates the Panamanian-flag M/V RAMBO. The operators of the M/V RAMBO wish to use the vessel in various oceanographic research capacities. In support of its request, Aries Marine states that the M/V RAMBO will be chartered to engage in seismic survey research off the coastal waters of Washington State. Aries Marine is requesting comment as to whether this proposed operation would violate United States coastwise laws. All crew personnel will be licensed or documented by the United States Coast Guard and no paid cargo will be carried aboard the vessel at any time.

ISSUE:

Whether a non-coastwise-qualified vessel may engage in seismic survey research in U.S. waters.

LAW AND ANALYSIS:

The Act of June 19, 1886, as amended (24 Stat. 81; 46 U.S.C. App. 289, sometimes called the coastwise passenger law), 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 a penalty of $200 for each passenger so transported and landed.

For your information, we have consistently interpreted this prohibition to apply to all vessels except United States-built, owned, and properly documented vessels (see, 46 U.S.C. 12106, 12110; 46 U.S.C. app. 883; 19 C.F.R. 4.80).

The coastwise law pertaining to the transportation of merchandise, as amended (41 U.S.C. app. 883, often called the Jones Act), provides that:

No merchandise, including merchandise owned by the United States Government . . . shall be transported by water, or by land and water . . . 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 . . ..

For purposes of the coastwise laws, a point in the United States territorial waters is considered a point embraced within the coastwise laws. The territorial waters of the United States consist of the territorial sea, defined as the belt, three nautical miles wide, adjacent to the coast of the United States and seaward of the territorial sea baseline.

For purposes of section 289, "passenger" is defined in section 4.50(b), Customs Regulations (19 C.F.R. 4.50(b)), as "...any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business." "Merchandise," as used in section 883, includes any article, including valueless merchandise pursuant to the amendment of section 883 by the Act of June 7, 1988 (Public Law 100-329; 102 Stat. 588).

In its interpretation of the coastwise laws with regard to the issue under consideration, Customs has long held that the use of a vessel solely engaged in oceanographic research is not considered a use in the coastwise trade (see, Headquarters Ruling Letter 110399, August 23, 1989). We have held that the use of non-coastwise- qualified vessels to engage in oceanographic research, including the transportation of persons participating in the research to, from, and between research sites in United States territorial waters, whether or not the persons participating in the research temporarily leave the vessels at the research sites, would not violate the coastwise laws. Further, we have held that the collection of marine specimens at the research sites and the transportation of those specimens from the research sites to points in the United States would not violate the coastwise laws. Of course, if such a vessel transported between coastwise points, or provided part of the transportation between coastwise points, of any persons other than the vessel crew and scientists and students engaged in the oceanographic research or any merchandise other than the usual-3-
supplies and equipment necessary for that research and/or research specimens or samples, the coastwise laws would be violated.

This interpretation of the coastwise laws is buttressed by the Act of July 30, 1965 (Public Law 89-99; 79 Stat. 424; 46 U.S.C. App. 441-444, often called the Oceanographic Research Vessel Act), as amended, section 3 (46 U.S.C. App. 443) which provides that "[a]n oceanographic research vessel shall not be deemed to be engaged in trade or commerce." In defining the term "oceanographic research vessel," this Act defines oceanographic research as "...including, but not limited to, such studies pertaining to the sea as seismic, gravity meter and magnetic exploration and other marine geophysical or geological surveys, atmospheric research, and biological research" (46 U.S.C. App. 441(1)).

Applying the principles previously set forth, vessels exclusively engaged in seismic survey research present no violation of the coastwise laws pursuant to 46 U.S.C. App. 441(1). While the list of activities which constitute "oceanographic research" contained in 46 U.S.C. App. 441(1) is not a complete list, it expressly provides that seismic surveying does not constitute trade or commerce.

HOLDING:

In accordance with the Law and Analysis section of this ruling, the use of a non-coastwise-qualified vessel to engage in seismic survey research is permissible under the coastwise laws.

Sincerely,

Acting Chief

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