United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 2003 HQ Rulings > HQ 115170 - HQ 116013 > HQ 115962

Previous Ruling Next Ruling
HQ 115962

---

July 7, 2003

VES-3-07:RR:IT:EC 115962 TLS

CATEGORY: CARRIER

Mr. Edwin A. Scotton
Director, Logistics
Alstom Power, Inc.
200 Day Hill Road
Windsor, Connecticut 06095

Dear Mr. Scotton:

This is in response to your letter dated March 28, 2003 in which you inquire about the Jones Act compliance of your company’s proposed plans to partially discharge cargo from a foreign-flagged vessel arriving from a foreign port to U.S.-operated barges, and then transport the remaining cargo in the foreign-flagged vessel to a U.S. port. The barges would be towed coastwise with U.S.-flagged vessels.

FACTS:

You state that a foreign-flagged vessel will import large, heavy, steam (or other vapor) generating boiler parts from Indonesia and Thailand. The foreign-flagged vessel will dock at Port Washington, a coastwise destination, and discharge the boiler parts onto U.S.-operated barges using heavy lift gear. Before the vessel arrives at Port Washington, however, the plan is to discharge some of the boiler parts onto U.S.-operated barges at other coastwise locations. The barges would then be towed to Port Washington using U.S.-flagged towing vessels and discharged using the heavy lift gear on the foreign-flagged vessel.

ISSUES:

Whether the use of a foreign-flagged vessel in the scenario described above is violative of 46 U.S.C. App. § 883.

Whether the use of domestically-operated barges in the scenario described above is violative of 46 U.S.C. App. § 883.

Whether the use of a U.S.-flagged towing vessel in the scenario described above is violative of 46 U.S.C. App. § 316(a).

LAW AND ANALYSIS:

Title 46, United States Code Appendix, § 883, the merchandise coastwise law often called the “Jones Act”, provides 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 one that is coastwise-qualified (i.e., U.S.-built, owned and documented).

Title 46, United States Code Appendix, § 316(a), the towing coastwise law, prohibits the use of any vessel not having in force a certificate of documentation endorsed for the coastwise trade (46 U.S.C. § 12106) to tow any vessel other than a vessel in distress, from any point or place embraced within the coastwise laws of the United States to another such port or place, either directly or by way of a foreign port or place, or for any part of such towing.

The coastwise laws generally apply to points in the territorial sea, 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, in cases where the baseline and the coastline differ.

In the scenario you present, the foreign-flagged vessel may discharge foreign-laden cargo directly at a United States location and onto domestically-operated barges (i.e., in U.S. territorial waters) that would be towed to a subsequent coastwise point for the discharge of the remaining cargo. The barges may transport merchandise between two or more coastwise points without restriction provided they are coastwise-qualified (see above).

The coastwise towing vessel, as you describe it, would be allowed to tow the barges to the destination coastwise point provided it is coastwise-qualified.

HOLDINGS:

The use of a foreign-flagged vessel in the scenario described above is not violative of 46 U.S.C. App. § 883.

The use of domestically-operated barges in the scenario described above is not violative of 46 U.S.C. App. § 883 provided such barges are coastwise-qualified.

The use of a U.S.-flagged towing vessel in the scenario described above is not violative of 46 U.S.C. App. § 316(a) provided it is coastwise-qualified.

Sincerely,

Glen E. Vereb
Chief

Previous Ruling Next Ruling