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HQ H025281





March 27, 2008

VES-3-02-OT:RR:BSTC:CCI H025281 JLB

CATEGORY: CARRIER

Mr. James Goss
Moran Shipping Agencies, Inc.
40 Commercial Street
Portland, Maine 04101

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

Dear Mr. Goss:

This letter is in response to your correspondence dated March 26, 2008, in which you request a ruling on whether the coastwise transportation of the individual mentioned therein aboard the M/T MOSCOW SEA constitutes a violation of 46 U.S.C. § 55103. 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 MOSCOW SEA (“the vessel”). The individual embarked on March 27, 2008 at Portsmouth, New Hampshire and will be disembarking at St. Croix, U.S. Virgin Islands.

ISSUE

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

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.

Pursuant to 46 U.S.C. § 55101(b), while the coastwise laws apply to the island territories and possessions of the United States, they are inapplicable to the Virgin Islands until the President declares by proclamation. Since the President of the United States has not declared by proclamation that the coastwise laws extend to the Virgin Islands, the coastwise laws, including 46 U.S.C. § 55103, do not apply. See Headquarters Ruling Letter H006044, dated January 30, 2007; Headquarters Ruling Letter 112901, dated October 20, 1993; Headquarters Ruling Letter 115090, dated July 14, 2000. Accordingly, 46 U.S.C. § 55103 is inapplicable to the subject individual’s voyage. The individual will not be in violation of the passenger coastwise statute insofar as his transportation does not constitute an engagement in coastwise trade.

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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