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HQ 227013

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January 24, 1997

VES-3-02-RR:IT:EC 227013 CC

CATEGORY: CARRIER

Cynthia L. Valli
P.O. Box 6997
San Diego, CA 92166

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

Dear Ms. Valli:

This is in response to your letter, a follow-up to our letter of May 3, 1996, 226740, concerning the voyage of your vessel "EOLO."

FACTS:

You state that the EOLO will be operated under a license of uninspected passenger vessels (6 passengers or less). Passengers (6 or less) continuously will embark (up to 2 voyages per day, up to 5 days per week) the EOLO at a United States point. The EOLO will proceed seaward beyond the three-mile territorial U.S. limit and return to same U.S. point of embarkation. The passengers will not go ashore, even temporarily, at any other coastwise point or engage in any charter party fishing. You request that we issue an endorsement to permit you to engage in the above-described voyages.

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 EOLO, 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 request that an endorsement be issued to permit the above-described use of the vessel, we are uncertain as to the nature of your request. We note that an endorsement for coastwise trade permits a vessel to be used to transport persons or merchandise from one coastwise point to another. Since the use of your vessel as described above will not constitute coastwise trade, a coastwise endorsement would not be necessary. In any event, since the vessel documentation laws of the United States are administered by the U.S. Coast Guard, we defer to that agency concerning their certification requirements.

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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