HQ 0113164 - 46 U.S.C. App. 883; 46 U.S.C. 316(a); Floating Garages; Coastwise Transportation; Towing - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1994 HQ Rulings > HQ 0113064 - HQ 0113255 > HQ 0113164

HQ 113164

July 20, 1994

VES-3/10-03-CO:R:IT:C 113164 GOB

CATEGORY: CARRIER

Mr. Roger Drew
Director
Scarfa Holdings Limited
Suite 1310
400 East Harrison Street
Tampa, Florida 33602

RE: 46 U.S.C. App. 883; 46 U.S.C. 316(a); Floating Garages; Coastwise Transportation; Towing

Dear Mr. Drew:

This is in response to your letter dated July 7, 1994 to the Chief Counsel of the Customs Service. The Carrier Rulings Branch of the Office of Regulations and Rulings is the office within the Customs Service which issues rulings relating to coastwise transportation.

FACTS:

You describe the facts as follows:

We are considering importing floating garages, capable of parking 1,000 cars, moored on site with jack-up legs for permanent stability and safety...
Units will be sited at waterline areas adjacent to casino sites along the Mississippi River and, may, in time, be sited at casino venues in the New Orleans area. ...
...these units are permanent and stationary once sited...

ISSUE:

Whether the proposed activity is in violation of the coastwise laws - 46 U.S.C. App. 289, 883 and 316(a).

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.

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, 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.

46 U.S.C. App. 316(a), the coastwise towing statute, states in part:

It shall be unlawful for any vessel not wholly owned by a person who is a citizen of the United States within the meaning of the laws respecting the documentation of vessels and not having in force a certificate of documentation issued under section 12106 or 12107 of Title 46 to tow any vessel other than a vessel in distress, from any port or place in the United States, its Territories or possessions, embraced within the coastwise laws of the United States, to any other port or place within the same, either directly or by way of a foreign port or place, or to do any part of such towing, or to tow any such vessel, from point to point within the harbors of such places.

Your letter states that the floating garages are "permanent and stationary." Based on the statement that the floating garages are stationary, we conclude that they will not be transporting passengers or merchandise from one coastwise point to another. Accordingly, the use of stationary floating garages is not violative of 46 U.S.C. App. 289 or 883. However, should the floating garages move, other than an incidental shifting in the water, and transport passengers or merchandise from one coastwise point to another coastwise point, such movement would be violative of 46 U.S.C. App. 289 and/or 883 unless it is accomplished by a vessel that is coastwise-qualified.

Your letter does not state the manner in which the floating garages will be assembled or set up. Pursuant to 46 U.S.C. App. 316(a), if the floating garages are towed from one coastwise point to another, such towing must be performed by a coastwise-qualified vessel.

HOLDINGS:

1. The use of stationary floating garages, which do not transport passengers or merchandise from one coastwise point to another coastwise point, is not violative of 46 U.S.C. App. 289 or 883.

2. Pursuant to 46 U.S.C. 316(a), if the floating garages are towed from one coastwise point to a second coastwise point, such towing must be performed by a coastwise-qualified vessel.

Sincerely,

Arthur P. Schifflin
Chief

Previous Ruling Next Ruling