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HQ H014920




July 30, 2007

VES-3-02:OT:RR:BSTC:CCI H014920 ALS

CATEGORY: CARRIER

Mr. Peter E. Hansen
Boarding Agent
T. Parker Host, Inc.
500 Plume Street East, Suite 600
Norfolk, Virginia 23510

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

Dear Mr. Hansen:

This letter is in response to your request of July 27, 2007, with respect to the coastwise transportation of certain individuals Our ruling is set forth below.

FACTS:

You ask whether certain individuals may be transported on the non-coastwise qualified M/V BARRA ("vessel"), from Norfolk, Virginia to New York, New York. The individuals will embark on or about July 30, 2007 in Norfolk and disembark in New York on or about August 5, 2007. You state that the individuals will be onboard to “oversee the loading of the vessel in Norfolk and New York.” You also state that the individuals “will not be assisting en route” with vessel operations.

ISSUE:

Whether the subject 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:

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 individuals will be onboard to “oversee the loading of the vessel in Norfolk and New York.” You also state that the individuals “will not be assisting en route” with vessel operations. In CBP Ruling HQ H008510 (March 22, 2007) and CBP Ruling HQ H008513 (March 23, 2007), CBP held that shipping agency trainees transported aboard a vessel “to observ[e] daily life on a vessel and gain better insight about what their colleagues [that] work on a vessel actually do” or “observe what goes on during a vessel’s voyage” were passengers within the meaning of 46 U.S.C. § 55103 insofar as the trainees were not “directly and substantially”

See CBP Ruling HQ 116721 (September 25, 2006); and see CBP Ruling HQ 116659 (May 19, 2006) (referencing the “direct and substantial” test). connected with the operation, navigation, ownership or business of the vessel itself. See also CBP Ruling HQ H010696 (May 9, 2007) and CBP Ruling HQ H010662 (May 9, 2007) (holding that shipping agencies human resources manager and ship broker’s trainee, respectively, transported coastwise “to observe shipboard operations” were passengers within the meaning of 46 U.S.C. § 55103).

Similarly, in the present case, you propose to transport two stevedores aboard a container vessel for the purpose of having them perform their duties in the port of disembarkation. Although the stevedores’ duties in port of disembarkation would seem to be related to the vessel’s operations, those duties do not connect the stevedores directly and substantially to the business or operations of the vessel itself. To the extent that the subject individuals would not have been 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, such individuals would be considered passengers within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). See CBP Ruling HQ 116721 (September 25, 2006) and CBP Ruling HQ 013452 (June 29, 2007) (holding that stevedores aboard a vessel for reasons unrelated to any business interest of the vessel itself are passengers).

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

HOLDING:

The subject individuals are "passengers" within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b). Therefore, the coastwise transportation of such individuals would be in violation of 46 U.S.C. § 55103.

Sincerely,

Glen E. Vereb

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