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HQ 116336





October 18, 2004

VES-3-02-RR:IT:EC 116336 GOB

CATEGORY: CARRIER

Vinnie J. Apicella
Mystic Valley Travel, Inc.
20 Delmonte Ave.
Suite 215
Monterey, CA 93940

RE: Coastwise Trade; 46 U.S.C. App. § 289; Cruise Itinerary

Dear Mr. Apicella:

This letter is in reply to your recent letter which we received on October 13, 2004.

FACTS:

You request a ruling with respect to a four-night Royal Caribbean Cruise Lines voyage which will occur between November 22 and November 26, 2004. The itinerary is as follows:

Day Port Arrive Depart
Day 1 Los Angeles -- 5:00 pm
Day 2 San Diego 8:00 am 5:00 pm
Day 3 Catalina Island 8:00 am 5:30 pm
Day 4 Ensenada 8:00 am 6:00 pm
Day 5 Los Angeles 8:00 am --

You state that four passengers are unable to embark from Los Angeles on November 22nd (Day 1). They will embark from Catalina Island on November 24th (Day 3).

ISSUE:

Whether the transportation of passengers on a non-coastwise-qualified vessel on the itinerary stated above constitutes a violation of 46 U.S.C. App. 289?

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.

The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. App. 289 (sometimes called the “Passenger Vessel Act” and the “coastwise passenger statute”) 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 $300 for each passenger so transported and landed.

Section 4.50(b), Customs Regulations (19 CFR 4.50(b)) provides 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.

Section 4.80a(b), Customs Regulations (19 CFR 4.80a(b)) provides in pertinent part that:

The applicability of the coastwise law (46 U.S.C. 289) to a vessel not qualified to engage in the coastwise trade (i.e., either a foreign-flag vessel or a U.S.-flag vessel that is foreign-built or at one time has been under foreign flag) which embarks a passenger at a coastwise port is as follows:
. . .
(2) If the passenger is on a voyage to one or more coastwise ports and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks at a coastwise port other than the port of embarkation, there is a
violation of the coastwise law.

A coastwise port is a "port in the U.S., its territories, or possessions embraced within the coastwise laws." 19 CFR 4.80a(a)(1). A nearby foreign port is defined as "any port in North America, Central America, the Bermuda Islands, or the West Indies (including the Bahama Islands, but not including the Leeward Islands of the Netherlands Antilles, i.e., Aruba, Bonaire, and Curacao)." 19 CFR 4.80a(a)(2).

Sections 4.80a(a)(4), Customs Regulations (19 CFR 4.80a(a)(4)) provides that:

Embark means a passenger boarding a vessel for the duration of a specific voyage and disembark means a passenger leaving a vessel at the conclusion of a specific voyage. The terms embark and disembark are not applicable to a passenger going ashore temporarily at a coastwise port who reboards the vessel and departs with it on sailing from the port. [Emphasis in original.]

The proposed itinerary must be analyzed through an application of the preceding laws and regulations.

We assume that the transporting vessel is non-coastwise-qualified.

You express the view that because San Pedro (Los Angeles) and Catalina Island are both under the jurisdiction of Los Angeles County, they are technically the same port.

We are unable to accept that view. We find that they are different ports for the purpose of 46 U.S.C. App. § 289 and related regulations. There are numerous ports of embarkation and disembarkation within the Los Angeles area, just as there are numerous ports of embarkation and disembarkation within many coastal areas. We consider a voyage from one port in Los Angeles to Catalina Island to be a coastwise voyage.

Accordingly, pursuant to 46 U.S.C. App. 289 and 19 CFR 4.80a, the transportation on a non-coastwise-qualified vessel of the passengers who embark on November 24th at Catalina Island and disembark on November 26th at Los Angeles constitutes a violation of the coastwise law. The transportation of such passengers falls within the scope of 19 CFR 4.80a(b)(2) and the prohibition of 46 U.S.C. App. § 289 as those passengers will embark and disembark at different coastwise points.

HOLDING:

The transportation on a non-coastwise-qualified vessel of the passengers who embark at Catalina Island and disembark at Los Angeles is a violation of 46 U.S.C. App. 289.

Sincerely,

Glen E. Vereb
Chief

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