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HQ 113931

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May 6, 1997

VES-3-02-RR:IT:EC 113931 GOB

CATEGORY: CARRIER

G. Michael Hubbard
District Manager
General Steamship Corporation, Ltd.
302 W. 5th Street, Suite 101
San Pedro, California 90731-3208

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

Dear Mr. Hubbard:

FACTS:

This is in response to your letter dated May 1, 1997 in which you state:

In order to prepare for this annual cruise season, Seabourn Cruise Line has requested General Steamship Corporation, acting as agent for Seabourn Cruise Line, to request permission for one staff member from their Oslo Norway office to travel with the vessel from Santa Barbara, Ca., departing on May 18, 1997, and arriving in San Francisco on May 20, 1997, to assist the vessel in the transition from World Cruises to Alaska Cruises.

Staff member, Ms. Sofie Margareta Larsson, will be specifically assisting the Hotel and Land Excursion Departments in converting their programs and passenger functions to the shorter, more time consuming cruises demanded of the summer Pacific Northwest Cruise season.

You stated telephonically that Ms. Larsson's responsibilities would include making shore arrangements such as travel with local vendors.

ISSUE:

Whether the proposed activities may be accomplished in compliance with the coastwise laws.

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 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. 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 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.

Although your letter does not specifically state so, we assume that the vessel at issue, the SEABOURN LEGEND, is not coastwise-qualified.

In Ruling 112601 dated June 17, 1993, we held that travel agents who were not employees of the vessel owner were passengers within the meaning of 19 CFR 4.50(b). In that ruling, we further held that the vessel operating company's regional sales managers and sales management staff were not passengers within the meaning of 19 CFR 4.50(b) because "[a]s employees of the vessel owner, the business connection is clear and their transportation would not be prohibited [under 46 U.S.C. App. 289]." In the facts presented here, we find that the staff member or employee of the vessel operator, who will be engaged in making shore arrangements with local vendors in the course of "assisting ... in converting their programs and passenger functions to the shorter, more time consuming cruises demanded of the summer Pacific Northwest Cruise season" is not a passenger within the meaning of 19 CFR 4.50(b) because the staff member/employee is sufficiently connected with the business of the vessel.

Accordingly, the transportation of that individual on the above-described trip is not prohibited by 46 U.S.C. App. 289.

HOLDING:

As detailed above, the staff member of the cruise line is not a passenger within the meaning of 19 CFR 4.50(b) and may therefore travel on the proposed itinerary without violating 46 U.S.C. App. 289.

Sincerely,

Jerry Laderberg
Acting Chief,

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