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HQ 113874

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May 2, 1997

VES-3-02-RR:IT:EC 113874 CC

CATEGORY: CARRIER

Captain Gunstein Langset
Norwegian Cruise Line
7665 Corporate Center Drive
Miami, FL 33126

RE: Coastwise Trade; Cruise Itinerary

Dear Captain Langset:

This is in response to your letter of February 27, 1997, requesting whether the anticipated itinerary of cruise vessels is a violation of the coastwise trade law.

FACTS:

You state that Norwegian Cruise Line operates seven Bahamian-flagged cruise ships. You state that your passengers will embark in Miami, Florida on a "once or twice" a year reposition cruise and the vessel will visit several ports in the United States. In addition, there will be ports of call outside the United States, including Hamilton, Bermuda, and St. Pierre and Miquelon. The passengers will disembark in New York. You ask whether St. Pierre and Miquelon qualify as foreign ports.

ISSUE:

Whether St. Pierre and Miquelon may be considered distant foreign ports for the purpose of avoiding a violation of the coastwise laws for a voyage beginning in Miami and ending in New York.

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). Concerning what is considered a foreign port in application of the passenger coastwise law, we stated in HQ 110765, dated February 8, 1990, the following:

Customs has promulgated regulations to administer the passenger transportation statue in section 4.80a, Customs Regulations (19 CFR 4.80a). The regulations provide guidelines for determining whether the movement of passengers between two coastwise points, with at least one intervening foreign point, is considered coastwise trade. To facilitate such determinations a distinction has been drawn between nearby foreign ports and distant foreign ports. By visiting at least one distant foreign port, a violation of the coastwise laws may be avoided on cruises moving between U.S. ports.... The foreign port distinctions in the Customs regulations are based upon geographic considerations, not nationality or sovereignty considerations.

The pertinent regulation, section 4.80a(a)(2) of the Customs Regulations (19 CFR 4.80a(a)(2)), provides that nearby foreign port means any foreign port in North America, Central America, the Bermuda Islands, or the West Indies (including the Bahama Islands, but not including the Leeward Islands of the Netherlands Antilles, i.e., Aruba, Bonaire, and Curacao). Section 4.80a(a)(3) of the Customs Regulations (19 CFR 4.80a(a)(3)) provides that distant foreign port means any foreign port that is not a nearby port.

St. Pierre and Miquelon are French islands off the south coast of Newfoundland. Since St. Pierre and Miquelon are foreign ports in North America, they are considered nearby foreign ports in application of 19 CFR 4.80a. Section 4.80a(b)(2) of the Customs Regulations (19 CFR 4.80a(b)(2)), also promulgated pursuant to 46 U.S.C. App. ? 289, provides that a coastwise violation occurs if a passenger is on a voyage to one or more coastwise points and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks at a coastwise port other than the port of embarkation. Consequently, the itinerary you submitted would be considered a coastwise violation.

HOLDING:

St. Pierre and Miquelon may not be considered distant foreign ports for the purpose of avoiding a violation of the coastwise laws for a voyage beginning in Miami and ending in New York.

Sincerely,

Acting Chief
Entry and Carrier Rulings Branch

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