HQ 0113208 - Foreign-built drydocks; 46 U.S.C. App. 883 - United States International Trade Commision Rulings

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HQ 113208

September 19, 1994

VES-3-CO:R:IT:C 113208 GOB

CATEGORY: CARRIER

E. Peter Kelly
President
F/V North Wind, Inc.
2602 39th West
Seattle, Washington 98199

RE: Foreign-built drydocks; 46 U.S.C. App. 883

Dear Mr. Kelly:

This is in response to your letter dated August 24, 1994.

FACTS:

You describe the facts as follows:

We recently bought a shipyard in Seattle, WA, and we would like to increase our capacity. One way to do this is to purchase foreign built Dry Docks and bring them to Seattle and use them here in the service of hauling vessels out of the water for repairs.

ISSUE:

Whether the use of a foreign-built drydock for the purpose of hauling vessels out of the water for repairs constitutes a violation of 46 U.S.C. App. 883.

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.

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.

Pursuant to 46 U.S.C. App. 883, the foreign-built drydock may not transport a vessel, or any merchandise, between two coastwise points, including two points within a harbor.

If the foreign-built drydock remains moored and merely hauls vessels out of the water for repairs and subsequently places the vessels back in the water at the same point from which the vessels were elevated, such activity is not transportation between two coastwise points, and thus is not prohibited by 46 U.S.C. App. 883.

HOLDING:

If the foreign-built drydock remains moored and merely hauls vessels out of the water for repairs and subsequently places the vessels back in the water at the same point from which the vessels were elevated, such activity is not transportation between two coastwise points, and thus is not prohibited by 46 U.S.C. App. 883.

Sincerely,

Arthur P. Schifflin
Chief

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