HQ 0113123 - 19 CFR 4.81; 46 U.S.C. App. 289, 883 - United States International Trade Commision Rulings

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HQ 113123

October 20, 1994

VES-3-CO:R:IT:C 113123 GOB

CATEGORY: CARRIER

Caitlin J. Bjorke
Marine Specialist
Tower Group International, Inc.
821 Second Avenue, #1400
Seattle, Washington 98104-1476

RE: 19 CFR 4.81; 46 U.S.C. App. 289, 883

Dear Ms. Bjorke:

This is in response to your letter dated June 1, 1994.

FACTS:

Your inquiry relates to 19 CFR 4.81(a) and (b). Your statement of the facts is as follows:

1. A U.S. vessel arrives from Russia in Dutch Harbor, Alaska carrying foreign merchandise loaded in Russia for discharge in Seattle. The vessel is entered in Dutch Harbor, and the foreign merchandise is put in bond. May the vessel proceed from Dutch Harbor to Seattle via several U.S. ports, loading and discharging domestic cargo at each port, notifying Customs at each port of arrival, but not entering or obtaining a permit to proceed from each U.S. port to the next? Will a travelling manifest be established at Dutch Harbor?

2. A U.S. vessel leaves Seattle carrying cargo in bond which was loaded in Seattle for discharge in Russia, and domestic cargo being carried between U.S, ports. The vessel calls at various domestic ports, discharging and loading domestic cargo, before arriving at Dutch Harbor, Alaska. There, all domestic cargo is discharged and cargo is loaded for Russia, in addition to the bonded merchandise already on board. May the vessel proceed from Seattle to Dutch Harbor via several U.S. ports, loading and discharging domestic cargo at each port, without notifying Customs at each port of arrival, entering, or obtaining a permit to proceed from each U.S. port to the next?

ISSUE:

Whether a U.S.-flag vessel may engage in the activities described in paragraphs one and two, supra.

LAW AND ANALYSIS:

Coastwise Laws - 46 U.S.C. App. 289 and 883

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.

46 U.S.C. App. 883, the coastwise merchandise statute 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, documented under the laws of, and owned by citizens of the United States.

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

Your letter does not state whether the vessel is coastwise- qualified, i.e., whether the vessel was built in, documented under the laws of, and owned by a citizen of the United States. If the vessel is coastwise-qualified, it may obtain a coastwise endorsement pursuant to 46 U.S.C. 12106.

As indicated supra, if the vessel is not coastwise-qualified, it may not transport passengers or merchandise between coastwise points. Accordingly, if the vessel is not coastwise-qualified, it may not engage in the activities described in paragraphs one and two, supra.

19 CFR 4.81(a) and (b)

19 CFR 4.81 (a) and (b) state:

Reports of arrivals and departures in coastwise trade.

(a) No vessel which is documented with a coastwise license or registry endorsement or is owned by a citizen and exempt from documentation, and which is in ballast or laden only with domestic products or passengers being carried only between points in the United States shall be required to report arrival or to enter when coming into one port of the United States from any other such port, except as provided for in sections 4.83 and 4.84, nor to obtain a clearance, permit to proceed, or permission to depart when going from one port in the United States to any other such port except when transporting merchandise to a port in noncontiguous territory.

(b) When the facts are as above stated except that the vessel is carrying bonded merchandise, the master shall report its arrival as provided for in 4.2.

Pursuant to 19 CFR 4.81(b), and provided that the vessel is coastwise-qualified, the vessel may engage in the activities described in paragraphs one and two, supra, provided that the master of the vessel reports its arrival as provided for in 19 CFR 4.2.

A travelling manifest will be established at Dutch Harbor, Alaska in the facts presented in paragraph one, supra.

HOLDINGS:

1. Pursuant to 46 U.S.C. App. 289 and 883, the vessel must be coastwise-qualified in order to transport passengers or merchandise between coastwise points.

2. Pursuant to 19 CFR 4.81(b), and provided that the vessel is coastwise-qualified, the vessel may engage in the activities described in paragraphs one and two, supra, provided that the master of the vessel reports its arrival as provided for in 19 CFR 4.2.

Sincerely,

Arthur P. Schifflin
Chief

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