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HQ H018146




October 5, 2007

VES-3-02-OT:RR:BSTC:CCI H018146 LLB

CATEGORY: CARRIER

Mr. Thomas M. Richard
Prime Maritime Agency, Inc.
16710 Hedgecroft, Suite 102
Houston, Texas 77060

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

Dear Mr. Richard:

This letter is in response to your company's correspondence of October 5, 2007, in which you inquire about the coastwise transportation of the individuals mentioned therein aboard the M/V RICKMERS DALIAN. Our decision follows.

FACTS

The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified M/V RICKMERS DALIAN (the "vessel") from New Orleans, Louisiana to Camden, New Jersey, with intervening calls at Norfolk, Virginia; Baltimore, Maryland, and Philadelphia, Pennsylvania. The individuals are expected to embark in New Orleans on October 7, 2007, to make repairs to the gangway mechanism of the vessel. The individuals will disembark in Camden on or about October 15, 2007.

ISSUE

Whether the individuals described in the FACTS section above are "passengers" within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 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. § 551031 which provides:

(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- (1) is wholly owned by citizens of the United States for purposes of engaging in coastwise traffic; (2) 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.

The Customs and Border Protection ("CBP") Regulations, promulgated under the authority of 46 U.S.C. § 55103, provide:

A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of the vessel, her navigation, ownership, or business.

19 C.F.R. § 4.50(b).

You state that the subject individuals will be transported on the vessel for the purpose of repairing the gangway mechanism of the vessel. 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 C.F.R. § 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. HQ 101699 (Nov. 5, 1975); see also HQ 116721 (Sept. 25, 2006) quoting HQ 101699.

In the present case, to the extent the individuals would 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 itself, as would be the case under the facts herein submitted, such individuals would not be considered passengers.2

We find that such individuals are not "passengers" within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Accordingly, the coastwise transportation of such individuals is not in violation of 46 U.S.C. § 55103.3

HOLDING

The subject individuals are not "passengers" within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individuals is not in violation of 46 U.S.C. § 55103.

Sincerely,

Glen E. Vereb
Chief

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