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HQ H020823





December 14, 2007

VES-3-02:OT:RR:BSTC:CCI H020823 ALS

CATEGORY: CARRIER

Ms. Toni Medina
Vessel Agent
APM Terminals
2500 Navy Way
Terminal Island, California 90731

Dear Ms. Medina:

This letter is in response to your request of December 11, 2007, with respect to the coastwise transportation of a certain individual. Our ruling is set forth below.

FACTS:

You ask whether a certain individual may be transported on the non-coastwise qualified CARSTEN MAERSK ("vessel"), from Los Angeles, California to Tacoma, Washington. The individual will embark on December 14, 2007 in Los Angeles and disembark in Tacoma on December 19, 2007.

You state that the individual will be onboard for the following reasons: “[As an] APMTNA Corporate Security Officer, [he is] responsible for maritime security compliance for all US terminals.., desire to familiarize self with the vessel/facility – MTSA/ISPS interface, and port arrival requirements, actions & operations from the vessel/at sea/departure & arrival perspective.”

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 individual will be onboard for the reasons noted in the FACTS section of this ruling. In CBP Rulings HQ H008510 (March 22, 2007) and 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" connected with the operation, navigation, ownership or business of the vessel itself. See also CBP Ruling HQ H010696 (May 9, 2007). Similarly, in the present case, you propose to transport “the APMTNA Corporate Security Officer” to “familiarize” him with the vessel, its facilities, and operations.”

Although familiarizing “the APMTNA Corporate Security Officer” with vessel operations may foster the business of the shipping company, it does not connect the human resources manager directly and substantially with the business of the vessel itself. To the extent that the subject 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, such individual would be considered a passenger within the meaning of 46 U.S.C. § 55103 and 19 CFR 4.50(b).

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

Sincerely,

Glen E. Vereb

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