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HQ 113087

April 28, 1994

VES-3-02 CO:R:IT:C 113087 GOB

CATEGORY: CARRIER

Mr. Robert Koch
839 Highway 61 East
Two Harbors, MN 55616

RE: Coastwise Trade; transportation of passengers; 46 U.S.C. App. 289; ISLAND GIRL

Dear Mr. Koch:

This is in response to your letter dated April 15, 1994.

FACTS:

You request a ruling with respect to the proposed chartering of your vessel, ISLAND GIRL ("the vessel"), on the following routes:

1. The charter would originate in Two Harbors, MN, sail on Lake Superior within the boundaries of the United States, and return to Two Harbors, MN.

2. The charter would originate in the U.S., sail into Canadian waters, and return to the U.S. at the conclusion of the charter.

The charters would not be bareboat charters, but would include vessel and crew.

The vessel is a foreign-built sailboat. You state that, via legislation, you have received a coastwise endorsement for the vessel.

This ruling is based upon your statement that the vessel is coastwise-qualified.

We issued Ruling 112953 dated November 24, 1993 to you with respect to certain proposed charters originating in Miami and the Bahamas.

ISSUE:

Whether the vessel may engage in the proposed charter routes.

LAW AND ANALYSIS:

Generally, the coastwise laws prohibit the transportation of passengers or merchandise between points in the United States embraced within the coastwise laws in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States.

The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. App. 289 and 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.

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

A vessel with a coastwise endorsement may engage in charters on the two above-described routes.

A charter on route one constitutes coastwise trade, for which a coastwise endorsement is necessary. A charter on route two would not constitute coastwise trade, and would therefore be permissible with a non-coastwise-qualified vessel, provided that the passengers embark and disembark at the same United States point and provided that the passengers do not go ashore at another United States point.

HOLDING:

A vessel with a coastwise endorsement may engage in the proposed charter routes.

Sincerely,

Arthur P. Schifflin
Chief

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