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HQ 113846

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May 5, 1997

VES-3-06-RR:IT:EC 113846 CC

CATEGORY: CARRIER

G.W. Birkhead, Esq.
Vandeventer, Black, Meredith & Martin
500 World Trade Center
Norfolk, VA 23510-1699

RE: Voyage to Nowhere; Coastwise Trade; 46 U.S.C. App. ? 289

Dear Mr. Birkhead:

This is in response to your letter of February 12, 1997, on behalf of General Ship Cruising Corporation, requesting a ruling on the voyage of the REGAL STAR.

FACTS:

You state that the REGAL STAR is an Italian-flagged vessel. The intended use of the vessel will be to sail from Miami to outside of the three-mile territorial limit and return to the Miami. You state that the passengers will not go ashore, even temporarily, at any other coastwise point. In addition, according to your submissions, there will be gambling on board the vessel, which will not take place within the territorial waters of the United States. You request a ruling letter "that the vessel would not be required to obtain a coastwise endorsement (46 CFR 67.19) from the U.S. Coast Guard, but rather will be eligible to engage in the above described activity with a registry endorsement (46 CFR 67.17).

ISSUE:

Whether the transportation of the passengers in the subject vessel is a voyage to nowhere and therefore not in violation of 46 U.S.C. App. ? 289.

LAW AND ANALYSIS:

46 U.S.C. App. ? 289, the passenger coastwise law, prohibits the transportation of passengers between points embraced within the coastwise laws of the United States, either directly or by way of a foreign port, in a non-coastwise-qualified vessel (i.e., any vessel not built in and documented under the laws of the United States and owned by persons who are citizens of the United States). For purposes of 46 U.S.C. App. ? 289, the term passenger is defined as "... any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business." 19 CFR 4.50(b).

In interpreting the coastwise laws (i.e., 46 U.S.C. App. ? 289, ? 883) Customs has ruled that a point in the United States territorial waters is a point in the United States embraced within the coastwise laws. The territorial waters of the United States consist of the territorial sea, defined as the belt, 3 nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline, in cases where the baseline and coastline differ.

In its administration of 46 U.S.C. App. ? 289, the Customs Service has ruled that the carriage of passengers entirely within territorial waters, even though the passengers disembark at their point of embarkation and the vessel touches no other coastwise point, is considered coastwise trade subject to the coastwise laws. However, the transportation of passengers to the high seas (i.e., beyond the 3 mile territorial sea) and back to the point of embarkation, assuming the passengers do not go ashore, even temporarily, at another United States point, often called a "voyage to nowhere," is not considered coastwise trade. 29 O.A.G. 318 (1912).

Concerning the proposed use of the REGAL STAR, the transportation of passengers from a U.S. point to international waters (i.e., beyond the 3 mile territorial sea) and back to the point of embarkation, without the passengers disembarking, would constitute a voyage to nowhere. Consequently, such a use of the vessel would not violate 46 U.S.C. App. ? 289.

Concerning your requests about endorsements, we defer to the U.S. Coast Guard since the vessel documentation laws of the United States are administered by that agency. We note, however, since the use of your vessel as described above will not constitute coastwise trade, a coastwise endorsement would not be necessary for such use.

Finally, although not specifically made a subject of the ruling request by you, we recognize the potential for certain issues regarding the conduct of gambling operations aboard the vessel. Consequently, we are enclosing a copy of HQ 113479, dated June 29, 1995, which addresses these issues.

HOLDING:

The transportation of the passengers in the subject vessel is a voyage to nowhere and therefore is not in violation of 46 U.S.C. App. ? 289.

Sincerely,

Acting Chief
Entry and Carrier Rulings Branch

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