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HQ H017344

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September 21, 2007

VES-3-02-OT:RR:BSTC:CCI H017344 JLB

CATEGORY: CARRIER

Mr. Kursat Bayrakci
Transmarine Navigation
301 E. Ocean Blvd., Suite 570
Long Beach, CA 90802

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

Dear Mr. Bayrakci:

This letter is in response to your email correspondence dated September 19, 2007, in which you requested that an individual be permitted to travel aboard the foreign-flagged vessel, M/T BRITISH HAZEL, from Long Beach, California to Tacoma, Washington. Our ruling on your request follows.

FACTS

The voyage in question involves the transportation of the subject individual aboard the non-coastwise-qualified M/T BRITISH HAZEL (“the vessel”). The individual will embark on September 25, 2007 at Long Beach, California and disembark at the port of Tacoma, Washington on or about October 5, 2007. The cruise line’s agent has stated that the individual will travel aboard the vessel in order to conduct a full assessment and issue a report for new management on the onboard facilities. The individual will be checking to make sure that the vessel complies with food safety legislation and will report on general catering standards.

ISSUE

Whether the individual described above would be a “passenger” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b)?

LAW AND ANALYSIS

The coastwise passenger statute, former 46 U.S.C. App. § 289 recodified as 46 U.S.C. § 55103, pursuant to P.L. 109-304 (October 6, 2006), states that no foreign vessel shall transport passengers “between ports or places in the United States to which the coastwise laws apply, either directly or by way of a foreign port,” under a penalty of $300 for each passenger so transported and landed. See also 19 C.F.R. § 4.80(b)(2). 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. Under 46 U.S.C. § 55103, a “passenger” is any person carried aboard a vessel “who is not connected with the operation of the vessel, her navigation, ownership, or business.” See also 19 C.F.R. § 4.50(b). In this regard, Customs Bulletin notice, June 5, 2002, provides a strict interpretation of “passenger” defining the term as persons transported on a vessel unless they are "directly and substantially" connected with the operation, navigation, ownership or business of that vessel itself. See Headquarters Decision 116659, dated May 19, 2006; see also Headquarter Decision H005913, dated January 26, 2007.

Pursuant to Headquarters Decision 101699, dated November 5, 1975, it is well settled that "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 section 289 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." See also Headquarters Decision 116752, dated November 3, 2006, quoting HQ 116721. In the present case, the individual would be traveling aboard the non-coastwise-qualified vessel to conduct a full assessment of onboard facilities including the catering, furnishings and fittings. Under the facts presented, the individual would be “directly and substantially” related to the operation of the vessel during the voyage and would not be considered a “passenger” under 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Consequently, the coastwise transportation of the subject individual is not in violation of 46 U.S.C. § 55103.

HOLDING

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

Sincerely,

Glen E. Vereb, Chief

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