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 H00910~1 - HQ H010509 > HQ H010089

Previous Ruling Next Ruling
HQ H010089





May 1, 2007

VES-3-02:RR:BSTC:CCI H010089 ALS

CATEGORY: CARRIER

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

Dear Mr. Viteri:

This letter is in response to your request of April 20, 2007, with respect to the coastwise transportation of an individual. Our ruling is set forth below.

FACTS:

You ask whether a certain individual may be transported on the non-coastwise qualified M/V SEVEN SEAS MARINER (the "vessel"), from Los Angeles, California to Port Hueneme, California on May 10, 2007. The individual will disembark on or about May 11, 2007, and will be “hosting a travel agent group on board” pursuant to her duties “as a cruise line management representative.”

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:

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.

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 will be “hosting a travel agent group on board” pursuant to her duties “as a cruise line management representative.” 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 46 U.S.C. § 55103 and 19 CFR § 4.50(b), 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. CBP Ruling HQ 101699 (November 5, 1975); see also CBP Ruling HQ 116721 (September 25, 2006).

In this case, we do not find that the proposed duties to be performed by the individual in question are connected directly and substantially with the operation, navigation, ownership, or business of the vessel. While hosting third parties might be related to the business of the cruise line, it cannot be considered, in and of itself, vessel business per se. It is equally clear that hosting third parties as a cruise line management representative is not directly and substantially connected with the navigation or operation of the vessel itself during the voyage, nor is it so connected to necessary vessel ownership or business interest during the voyage. See HQ 101699, supra. (Emphasis added.)

Thus, in the present case, to the extent that the individual would not be engaged in any shipboard activities while traveling on the foreign 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 be considered to be a passenger (see HQ 116721, supra; and CBP Ruling HQ 116659 (May 19, 2006), referencing the "direct and substantial" test).

We find that the proposed activity in this case is not directly and substantially connected with the ownership, navigation, operation, or business of the vessel. Therefore, we determine that the subject individual is a "passenger" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Accordingly, the coastwise transportation of such individual is in violation of 46 U.S.C. § 55103.

HOLDING:

The subject individual is a "passenger" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Therefore, the coastwise transportation of such individual is in violation of 46 U.S.C. § 55103.

Sincerely,

Glen E. Vereb

Previous Ruling Next Ruling