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HQ 112695

August 31, 1993

VES-3-07 CO:R:IT:C 112695 JBW

CATEGORY: CARRIER

Mr. David K. Riccitiello
West Coast Bridge, Inc.
3781 Mallard Drive
Benicia, CA 94510

RE: Coastwise; Documentation; Construction; 46 U.S.C. app. 883; 46 U.S.C. app. 289.

Dear Mr. Riccitiello:

This letter is in response to your request for a ruling on the application of the coastwise laws to the use of a vessel for construction activities.

FACTS:

West Coast Bridge, Inc., is a corporation engaged in marine construction. West Coast Bridge currently uses a vessel that is not documented for the coastwise trade for repair of pier fenders in San Francisco Bay. While in use, the vessel remains stationary; the vessel is tied to the structure being repaired or is anchored. The vessel is maneuvered as the work progresses. You state that the limited space on the vessel requires that workmen and supplies arrive via small crew boats and barges. The workmen and supplies are generally not transported on the vessel.

ISSUE:

Whether the use of a vessel for construction activities in United States territorial and internal waters constitutes an engagement in the coastwise trade.

LAW AND ANALYSIS:

The coastwise laws of the United States prohibit the transportation of merchandise between points in the United States embraced within the coastwise laws in any vessel other than a vessel built in the United States, documented under the laws of the United States, and owned by persons who are citizens of the United States. 46 U.S.C. app. 883 (referred to as "the Jones Act"). Generally, the coastwise laws apply to points within the territorial sea of the United States, defined as the belt, three 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. Headquarters Ruling Letter 111275, dated November 13, 1990.

The Customs Service has held that a non-coastwise-qualified vessel used as a moored facility within territorial and internal waters does not engage in the coastwise trade and consequently does not violate the coastwise laws, or any other law administered by the Customs Service, provided that the vessel remains stationary. E.g., C.S.D. 89-107, 23 Cust. B. & Dec., No. 44, 8, 9 (1989). Thus, the use of a vessel as a moored, stationary construction facility is not an engagement in the coastwise trade. If, however, the vessel is not secured or otherwise moves while in use, then such operations would be prohibited by the coastwise laws.

We note that although the vessel under consideration may not be engaging in the coastwise trade while in operation as a moored, stationary construction facility, the vessel itself will become a coastwise point if used as such. C.S.D. 89-107. Therefore, any vessel moving merchandise or workmen between the stationary vessel and another coastwise point must be documented for the coastwise trade. 46 U.S.C. app. 289 & 883. Furthermore, the construction vessel itself may not have any passengers or merchandise aboard during its initial movement to the work site, during its movement from work site to work site, or during its movement following the completion of the project, provided these sites are points subject to the application of the coastwise laws. C.S.D. 89-107.

This ruling does not address issues within the purview of other governmental agencies, e.g., the United States Coast Guard for issues relating to vessel documentation, safety, and inspection. If you wish to contact the Coast Guard about these matters, you may communicate with your local Coast Guard office or Coast Guard Headquarters at the following address:

Thomas Willis
Chief, Vessel Documentation
United States Coast Guard (GMVI-5)
2100 Second Street, S.W.
Washington, D.C. 20593-0001

HOLDING:

The use of a vessel as a moored, stationary construction facility is not an engagement in the coastwise trade. Under such circumstances, the vessel becomes a coastwise point itself. Transportation of passengers and merchandise to or from the barge and other coastwise points must be by coastwise-qualified vessels. While being moved from work site to work site, the vessel may not transport passengers or merchandise.

Sincerely,

Acting Chief

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