HQ H004335 - Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b) - United States International Trade Commision Rulings

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HQ H004335

December 13, 2006

VES-3-02-RR:BSTC:CCI H004335 GOB

CATEGORY: CARRIER

Ms. B. Wright
Maersk Pacific Ltd.
APM Terminal
2500 Navy Way
Terminal Island, CA 90731

RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b)

Dear Ms. Wright:

This letter is in response to your letter of December 12, 2006, with respect to the coastwise transportation of certain individuals. Our ruling is set forth below.

FACTS:

You ask whether officers or crew may bring their wives and children on a non-coastwise-qualified vessel whose route is Los Angeles to Tacoma or Oakland and then to a foreign port or ports.

ISSUE:

Whether the individuals are “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b)?

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. Such a vessel, after it has obtained a coastwise endorsement from the U.S. Coast Guard, is said to be “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. § 55103 (recodified by Pub. L. 109-304, enacted on October 6, 2006) and provides that:

(a) In General. Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not transport passengers between ports or places in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel-
is wholly owned by citizens of the United States for purposes of engaging in the coastwise traffic; and
has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement.

(b) Penalty. The penalty for violating subsection (a) is $300 for each passenger transported and landed.

Section 4.50(b), Customs and Border Protection (“CBP”) 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.

It is CBP’s longstanding position that immediate family members (i.e., a spouse and children) of officers of the vessel are not considered “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b). This position was first articulated in General Letter No. 117, dated May 20, 1916. That letter and position were cited with approval in Bureau Letter MA 212.1, dated December 9, 1958, as well as in a Customs Bulletin notice of February 20, 2002 (Volume 36, Customs Bulletin, No. 8, p. 50), pertaining to the modification and revocation of CBP ruling letters relating to who is considered a passenger for the purpose of 46 U.S.C. § 55103 and 19 CFR § 4.50(b).

However, CBP’s position extends to immediate family members of officers of the vessel. Our position does not extend to immediate family
members of the crew of the vessel. Such individuals are considered “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b).

HOLDING:

Immediate family members (i.e., a spouse and children) of officers of the vessel are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b). Therefore, the coastwise transportation of such individuals on a non-coastwise-qualified vessel is not in violation of 46 U.S.C. § 55103.

Immediate family members (i.e., a spouse and children) of crew of the vessel are “passengers” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b). Therefore, the coastwise transportation of such individuals on a non-coastwise-qualified vessel is in violation of 46 U.S.C. § 55103.

Sincerely,

Glen E. Vereb
Chief

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