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HQ 115636

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April 15, 2002

VES-5-RR:IT:EC 115636 GEV

CATEGORY: CARRIER

Becky Mason
Ryan Marine Services, Inc.
Post Office Box 1448
Galveston, Texas 77553

RE: Offshore Service Vessels; Entry; Clearance; 19 U.S.C. § 1434; 46 U.S.C. App. § 91

Dear Ms. Mason:

This is in response to your letter dated March 19, 2002, requesting a ruling regarding the requirement of your vessels to enter and clear Customs. Our ruling in this matter is set forth below.

FACTS:

Ryan Marine Services, Inc. owns Offshore Service Vessels (OSVs) that transport personnel and supplies to the oilfield and shipping industries. Included in these activities is the transporting/receiving of cargo and passengers to or from pipe-laying barges located in international waters. These barges may be foreign or domestically flagged and each may have up to twenty anchors down at the time of this activity. Furthermore, the pipeline on which these barges are working may be running to and from various locations (e.g., from one offshore platform to another platform then to land, or from a refinery in Corpus Christi via international waters to another refinery in New Orleans).

ISSUE:

Whether OSVs that transport personnel and supplies to pipe-laying barges located in international waters as described above are required to enter and clear Customs.

LAW AND ANALYSIS:

Title 19, United States Code, § 1434 (19 U.S.C. § 1434), sets forth the Customs entry requirements for vessels. The applicable Customs Regulations promulgated pursuant to that statute are set forth in title 19, Code of Federal Regulations, § 4.3 (19 CFR § 4.3). With respect to the activities of the OSVs, we note that § 4.3(a)(4), provides, in pertinent part, that entry is required after arrival at any port or place in the United States of—

Any vessel which hasdelivered or received merchandise or passengers while outside the territorial sea. (Emphasis added)

Title 46, United States Code Appendix, § 91 (46 U.S.C. App. § 91), sets forth the Customs clearance requirements for vessels. The applicable Customs Regulations promulgated pursuant to that statute are set forth in title 19, Code of Federal Regulations, § 4.60(a)(4) (19 CFR § 4.60(a)(4)). With respect to the activities of your company’s OSVs, we note that § 4.60(a)(4), provides, in pertinent part, that clearance is required before departing from a port or place in the United States for—

All vessels departing for points outside the territorial sea
to receive merchandise or passengers while outside them territorial sea, as well as foreign vessels delivering merchandise or passengers while outside the territorial sea. (Emphasis added)

Accordingly, your company’s OSVs, regardless of whether they are U.S. or foreign-flagged, would be required to make formal Customs entry pursuant to the above-cited authority when delivering passengers or cargo to pipe-laying barges located in international waters. With respect to clearance, if the OSVs are U.S.-flagged clearance would only be required if receiving merchandise or passengers from such barges, whereas if the OSVs are foreign-flagged, clearance would be required if they are either delivering or receiving merchandise or passengers.

It should be noted that the answers to the questions you pose are governed by the above-cited statutory and regulatory authority, not the Outer Continental Shelf Lands Act of 1953, as amended (43 U.S.C.

§ 1333(a)). The fact that the pipe-laying barges to which you refer may have 20 anchors down or that the pipeline on which they are working may extend in various directions is therefore is of no consequence in this matter.

HOLDING:

OSVs that transport personnel and supplies to pipe-laying barges located in international waters are required to enter and clear Customs as discussed in the Law and Analysis portion of this ruling.

Sincerely,

Larry L. Burton

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