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HQ 114439

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August 21, 1998

VES-3-RR:IT:EC 114439 GOB

CATEGORY: CARRIER

Fred Nyhuis
Principal Consultant
River & Environmental Solutions
Route One, Box 135
Milton, WV 25541-9719

RE: 46 U.S.C. 883; Coastwise transportation; Floating drydock

Dear Mr. Nyquis:

This is in response to your letter of July 28, 1998 on behalf of Superior Marine, Inc.

FACTS:

You ask whether a certain drydock requires a coastwise endorsement on its U.S. Coast Guard certificate of documentation. You describe the facts as follows:

Superior Marine, Inc. uses this vessel (identified as Drydock #1) for the repair of other vessels operating on the Western Rivers. It is at all times moored to Superior Marine's shoreside properties along the Ohio River in South Point, OH. As a conventional drydock, it is lowered in the water, permitting the entry of a vessel between its wing walls. Once in place, the vessel to be repaired is lifted free of the water as the drydock is dewatered. Drydock #1 is not used for the transportation of any vessel or property.

ISSUE:

Whether the subject drydock is engaged in coastwise transportation such that it requires a coastwise endorsement?

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.

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. Equipment and supplies of the transporting vessel are not considered "merchandise" for this purpose.

19 CFR 4.80b(a) provides in pertinent part that a coastwise transportation of merchandise takes place when merchandise laden at a point embraced within the coastwise laws is unladen at another coastwise point, regardless of the origin or ultimate destination of the merchandise.

We have previously held that the use of a moored drydock in hauling vessels out of the water for repairs and subsequently replacing the vessels back in the water at the same point from which they were elevated is not considered the transportation of merchandise between two coastwise points. See Ruling 110283 dated November 17, 1989 and Ruling 113208 dated September 19, 1984. Therefore, such activity is not prohibited by 46 U.S.C. App. 883. Accordingly, a coastwise endorsement is not required.

HOLDING:

The use of a moored drydock in hauling vessels out of the water for repairs and subsequently replacing the vessels back in the water at the same point from which they were elevated is not considered the transportation of merchandise between two coastwise points. Therefore, such activity is not prohibited by 46 U.S.C. App. 883. Accordingly, a coastwise endorsement is not required.

Sincerely,

Jerry Laderberg
Chief,

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