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HQ H021924

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January 22, 2008

VES-3-02-OT:RR:BSTC:CCI H021924 LLB

CATEGORY: CARRIER

Mr. Thomas Bengtsson
Imperial Ship Management
Klippan 1A, SE 414-51
Goteborg, Sweden

RE: Coastwise Transportation; 46 U.S.C. § 55103

Dear Mr. Bengtsson:

This letter is in response to your January 15, 2008, correspondence, in which you inquire about the coastwise transportation of the six individuals mentioned therein aboard the M/V THEBELAND. Our decision follows.

FACTS

The voyage in question involves the transportation of the subject individuals currently aboard the non-coastwise-qualified M/V THEBELAND (the “vessel”). The individuals embarked in New York, New York and will be disembarking in the Canary Islands, Spain.

ISSUE

Whether the use of a non-coastwise qualified vessel in the voyage described above constitutes an engagement in the coastwise trade in violation of 46 U.S.C. § 55103.

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. 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.

Based on the facts you provided, the coastwise laws are inapplicable to the subject individuals’ voyage. Although the subject individuals will embark the vessel at New York, New York, a U.S. port, the individuals are disembarking at a foreign port, i.e., the Canary Islands, Spain. Therefore, these individuals will not be in violation of the coastwise laws insofar as their transportation does not involve disembarkation at a coastwise port.

HOLDING

The use of a non-coastwise qualified vessel in the voyage described above does not constitute an engagement in the coastwise trade in violation of 46 U.S.C. § 55103.

Sincerely,

Glen E. Vereb
Chief

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