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HQ 113355

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March 1, 1995

Walter S. Crumbley, Jr.
Safe Harbor Marina
6810 Front Street
Stock Island, FL 33040

RE: Coastwise transportation; 46 U.S.C. App. 289; 19 CFR 4.50(b); Passengers

Dear Mr. Crumbley:

This is in response to your letter dated January 31, 1995.

FACTS:

You state as follows:

The operation will use a US bu ilt, certified, and inspected multi-passenger ferryboat to transport passengers from a marina facility known as Safe Harbor Marina, or other ports within the local area, out to one of several submarine operating locations...for a submarine tour, and then back to the same port that the trip originated from.

All sites selected for the tours are at a minimum distance of at least 4 (four) nautical miles offshore from the closest land mass (Key West and Stock Island). All sites are located in international waters south of Key West and Stock Island. The submarine will at no time operate any closer than 3 (three) miles of the shore with paying passengers aboard.

The submarine vessel is foreign and will be either foreign registry or United States documented with pleasure and registry endorsements. All sites selected are at a minimum distance of at least 4 (four) nautical miles offshore from the closest land mass (Key West and Stock Island). The submersible vessel will not operate with passengers for hire any closer than 3 (three) nautical miles from shore. The submersible vessel will return without passengers to its Florida port at Stock Island each night.

ISSUE:

Whether the proposed activities are prohibited by 46 U.S.C. App. 289.

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. A vessel that is built in, documented under the laws of, and owned by citizens of the United States, and which obtains a coastwise endorsement from the U.S. Coast Guard, is referred to as "coastwise qualified."

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.

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.

Section 4.50(b), Customs Regulations (19 CFR 4.50(b)) states as follows:

A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.

Your letter does not state whether the ferryboat has a coastwise endorsement. We will assume for the purpose of this ruling request that the ferryboat is not coastwise-qualified.

The transportation of passengers by the ferryboat from a Florida port to the submersible vessel operating locations, which are outside of the U.S. territorial waters, and the subsequent transportation of the passengers in the ferryboat back to the same point in the Florida port from which the trip commenced is not prohibited by 46 U.S.C. App. 289.

The transportation of passengers in a foreign-built submersible vessel for a tour beginning and ending outside of the U.S. territorial waters is not prohibited by 46 U.S.C. App. 289.

The trip of the submersible vessel, without passengers, from its Florida port to its operating locations beyond the U.S. territorial waters, and the return trip to its Florida port is not prohibited by 46 U.S.C. App. 289.

HOLDING:

As detailed supra, the proposed activity is not violative of 46 U.S.C. App. 289.

Sincerely,

Arthur P. Schifflin
Chief

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