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HQ H005862

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January 25, 2007

VES-3-02-RR:BSTC:CCI H005862 GOB

CATEGORY: CARRIER

Jorge L. Viteri
District Manager, California
Quay Cruise Agencies U.S.A.
1000 E. Del Amo Blvd.
Carson, CA 90746-3520

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

Dear Mr. Viteri:

This letter is in response to your letter of January 24, 2007, on behalf of Royal Caribbean Cruises, Ltd. (“RCCL”), with respect to the coastwise transportation of an individual. Our ruling is set forth below.

FACTS:

You request a determination that an individual traveling on the M/V MONARCH OF THE SEAS (the “vessel”), a non-coastwise-qualified vessel, not be considered a “passenger” pursuant to 46 U.S.C. § 55103. The individual, who is the Chief Purser, will be responsible for training, support, and ensuring that company policies are carried out by vessel personnel as outlined in RCCL manuals.

You propose that this individual will embark the vessel in Los Angeles, California on January 29, 2007 and disembark the vessel in Catalina Island, California on January 31, 2007.

ISSUE:

Whether the subject individual is a “passenger” 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.

You state that the subject individual, the Chief Purser, will be responsible for training, support, and ensuring that company policies are carried out by vessel personnel as outlined in RCCL manuals. In this context, and in accordance with previous Headquarters rulings, workmen, technicians, or observers transported by vessel between ports of the United States are not classified as “passengers” within the meaning of 19 CFR 4.50(b) and 46 U.S.C. § 55103 if they are required to be on board to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are on board because of a necessary vessel ownership or business interest during the voyage. HQ 101699, of November 5, 1975; see also HQ 116721, of September 25, 2006, quoting HQ 101699.

Thus, in the present case, to the extent that the individual would be engaged in any shipboard activities while traveling on the non-coastwise-qualified vessel between coastwise ports, that would be “directly and substantially” related to the operation or business of the vessel itself, as would be the case under the facts herein submitted, such individual would not be considered to be a passenger (see HQ 116721, supra; and see HQ 116659, of May 19, 2006, referencing the “direct and substantial” test). See also, e.g., Customs telex 104712, of July 21, 1980, finding that repairmen were not passengers when carried aboard a foreign vessel between U.S. ports “for [the] purpose of repairing vessel en route between such ports."

In the present case, you state that the individual will be responsible for training, support, and ensuring that company policies are carried out by vessel personnel as outlined in RCCL manuals. We find that the proposed activity is directly and substantially connected with the operation and business of the vessel. Therefore, in accord with the above-described position, we find that the subject individual is not a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b) when he is transported on the subject voyage.

HOLDING:

The subject individual is not “passenger” within the meaning of 46 U.S.C. § 55103 and 19 CFR § 4.50(b). Therefore, the coastwise transportation of such individual is not in violation of 46 U.S.C. § 55103.

Sincerely,

Glen E. Vereb
Chief

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