HQ H006571 - Coastwise transportation; passengers; 46 U.S.C. §55103 - United States International Trade Commision Rulings

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 > 2007 HQ Rulings > HQ H005913 - HQ H007655 > HQ H006571

Previous Ruling Next Ruling
HQ H006571

February 9, 2007

VES-3-02-RR:BSTC:CCI H006571 CK

CATEGORY: CARRIER

Mr. Carlos M. Babot Sr.
Marine Operations Manager
Farovi Shipping Corporation
125 N. 9th Street
Miami, FL 33132

RE: Coastwise transportation; passengers; 46 U.S.C. §55103

Dear Mr. Babot:

In your letter transmitted by facsimile on February 8, 2007, you requested four technicians be allowed to travel aboard Mediterranean Shipping Company S.A.’s foreign-flagged vessel MSC LORENA from Port Everglades, FL to Savannah, Ga. Our ruling on your request follows.

FACTS:

You requested that four technicians be allowed to travel aboard the foreign-flagged MSC LORENA on a voyage from Port Everglades, FL to Savannah, Ga. These individuals plan to embark on February 9, 2007 in order to attend sea trials of the ship since it had recent repairs and maintenance performed. The purpose for being aboard the vessel is to supervise engine performance and to assure that all is in good working order as well as to assist the ship’s Chief Officer and Chief Engineer in testing guide lines and provide technical advice while the ship is in the process of engaging in the aforementioned sea trials.

ISSUE:

Whether the four technicians described above would be passengers under the coastwise passenger statute, 46 U.S.C. §55103.

LAW AND ANALYSIS:

The coastwise passenger statute, 46 U.S.C. §55103(recodified from former 46 U.S.C. App. 289; Pub.L. 109-304 October 6, 2006) provides that no vessel may transport passengers between ports or places in the United States either directly or by way of a foreign port, upon a penalty of $300 for every passenger so transported and landed (see 19 CFR 4.80(b), unless it has been documented for the coastwise trade under chapter 121 of Title 46, United States Code. Under section 55103 (see 19 CFR 4.80a(a)(5)), a “passenger” is any person carried aboard a vessel who is not connected with the operation of the vessel, her navigation, ownership, or business (19 CFR 4.50(b)). In this regard, as resolved in a June 5, 2002, Customs Bulletin notice (Vol. 36, No. 23, p. 50, persons transported on a vessel would be passengers unless they were “directly and substantially” connected with the operation, navigation, ownership, or business of that vessel itself. In the current context, Headquarters ruling (HQ) 116752, of November 3, 2006, is instructive in explaining the operative administrative law applicable in this context, as follows:

[T]he Customs Service [now Customs and Border Protection (CBP)] has repeatedly ruled that if any persons are transported coastwise who are bona fide agents of the line or officers of companies acting as such agents and if such persons while on the voyage are concerned with observing and appraising the facilities offered, such personsare not ‘passengers’ under section 289 [now section 55103] and §4.50(b) (emphasis added) (HQ 103410, of May 5, 1978 (operations manager of freight line transported coastwise aboard freight line’s vessel to observe vessel’s operational pattern thereby deemed connected with operation and business of vessel so as not to be passenger when being transported for this purpose)).

HQ 116752 (emphasis added) (executive chef of cruise line transported aboard its vessel “to monitor and access the standards of [vessel’s culinary operation onboard” found to be connected with that vessel’s operation/business, and not considered passenger).

Further we note that 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 section 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 (November 5, 1975); see also HQ 116721 (September 25, 2006, quoting HQ 101699), HQ H005405, January 17, 2007,and HQ H006224, dated February 2, 2007.

In the present case, the four technicians boarding the MSC LORENA to supervise engine performance and to assure that all is in good working order as well as to assist the ship’s Chief Officer and Chief Engineer in testing guide lines and provide technical advice while the ship is in the process of engaging in sea trials are directly and substantially connected to the operation and navigation of the vessel and these individuals are therefore not passengers for purposes of 46 U.S.C. §55103.

HOLDING:

Under the facts presented, the four technicians described above are not passengers for purposes of administering 46 U.S.C. §55103. Hence, the proposed coastwise transportation of the four technicians aboard the MSC LORENA would not be in violation of 46 U.S.C. §55103.

Sincerely,

Glen E. Vereb

Previous Ruling Next Ruling