HQ 0112917 - Coastwise Trade; Guam; 46 U.S.C. App. 289, 883; 46 U.S.C. 12105 - United States International Trade Commision Rulings

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HQ 112917

October 19, 1993

VES-3-06-CO:R:IT:C 112917 GEV

CATEGORY: CARRIER

William M. Dozier, Esq.
Vandeventer, Black, Meredith & Martin
500 World Trade Center
Norfolk, Virginia 23510-1699

RE: Coastwise Trade; Guam; 46 U.S.C. App. 289, 883; 46 U.S.C. 12105

Dear Mr. Dozier:

This is in response to your letter dated October 4, 1993 (your file no. 31320001) requesting a ruling regarding the use of a vessel in trade with Guam. Our ruling is set forth below.

FACTS:

The vessel under consideration is a foreign-built, U.S.-flag vessel issued a certificate of documentation with a registry endorsement. A proposed use of the vessel includes the carriage of passengers and/or cargo between points or places in the United States and Guam.

ISSUE:

Whether a foreign-built, U.S.-flag vessel issued a certificate of documentation with a registry endorsement may transport passengers and/or cargo between the United States and Guam pursuant to 46 U.S.C. 12105.

LAW AND ANALYSIS:

Title 46, United States Code Appendix, 883 (46 U.S.C. App. 883), the merchandise coastwise law often called the "Jones Act", provides in part, that no merchandise shall 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 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 (i.e., a coastwise-qualified vessel). Section 289 of title 46 (46 U.S.C. App. 289, the passenger coastwise law) as interpreted by the Customs Service, prohibits the transportation of passengers between
points in the United States embraced within the coastwise laws, either directly or by way of a foreign port, in a non-coastwise- qualified vessel (see above).

The coastwise laws generally apply to points in the territorial sea, 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.

Pursuant to title 46, United States Code Appendix, 877 (46 U.S.C. App. 877) the coastwise laws are applicable to Guam. Accordingly, foreign-flag vessels are prohibited from transporting merchandise and/or passengers between United States coastwise points, including transportation between Guam and other points in the United States and between points within Guam.

It should be noted, however, that pursuant to title 46, United States Code Appendix, 12105(b) (46 U.S.C. App. 12105(b)), a vessel for which a registry endorsement is issued may be employed in trade with Guam. Accordingly, Customs has long held that foreign-built vessels issued a certificate of documentation endorsed with a registry endorsement may engage in trade between United States coastwise points and Guam. Passengers and merchandise may, therefore, be transported between United States coastwise points and Guam and between points within Guam on a foreign-built, U.S.-flag vessel.

In regard to the carriage of passengers or merchandise between the United States and the Commonwealth of the Northern Mariana Islands (CNMI), 502(b) and 503(b) of the "Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America" (48 U.S.C. 1681) provide in part that except for activities of the U.S. Government and its contractors in the CNMI, the coastwise laws of the United States do not apply to the CNMI. Accordingly, a foreign-built, U.S.-flag vessel issued a certificate of documentation with a registry endorsement would not be prohibited from carrying passengers or cargo between the United States and the CNMI unless it was engaging in the aforementioned activities.

Parenthetically, we note your statement that you would appreciate any prior Carrier Rulings Branch decisions that we have on the points discussed above. You should know that under the provisions of 5 U.S.C. 552(a)(2), Customs maintains and makes available for public inspection and copying a current index providing information identifying the final ruling letters prepared by the Customs Service. These rulings are identified by a 6-digit file number. This keyword index is available in diskette format for subscription at a nominal cost or for use - 3 -
free of charge at Customs reading rooms. Should you wish to subscribe to this keyword index, we suggest that you contact Mr. Thomas Budnik of the Legal Retrieval Branch here at Customs Headquarters.

Inasmuch as our system provides any requestor with an opportunity to identify the particular rulings desired, we ask that you provide us the 6-digit control number(s) for any ruling(s) you may desire. Upon receipt of your amended request, we shall be glad to search for the documents you seek.

HOLDING:

A foreign-built, U.S.-flag vessel issued a certificate of documentation with a registry endorsement may transport passengers and/or cargo between the United States and Guam pursuant to 46 U.S.C. 12105.

Sincerely,

Arthur P. Schifflin

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