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HQ H026506

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April 23, 2008

VES-3-02-RR:BSTC:CCI H026506 CK

CATEGORY: CARRIER

Kenny Wong
Operations Manager
S5/Norton Lilly International Agency
5080 McLester Street
Maersk Control Building, 3rd Floor
Elizabeth, NJ 07207

RE: Coastwise transportation; passengers; 46 U.S.C. §55103

Dear Mr. Wong:

In a letter transmitted by email on April 23, 2008, it was requested that two individuals be allowed to travel aboard the non-coastwise-qualified vessel PRESIDENT JACKSON on a voyage from NewYork, NY to Norfolk, VA. Our ruling on this request follows.

FACTS:

One senior service technician and one senior service supervisor seek to travel aboard the non-coastwise-qualified PRESIDENT JACKSON on a voyage from New York, NY to Norfolk, VA. These individuals would embark on April 25, 2008 in New York, NY and disembark on April 30, 2008 in Norfolk, VA. The two individuals will board the vessel to carry out the Annual Marine Fire System Inspection.

ISSUE:

Whether the two individuals would be passengers under the coastwise passenger statute, 46 U.S.C. §55103.

LAW AND ANALYSIS:

The coastwise passenger statute, 46 U.S.C. §55103 (recodified from former 46 U.S.C. App. 289; Pub.L. 109-304 October 6, 2006) provides that no vessel may transport passengers between ports or places in the United States either directly or by way of a foreign port, upon a penalty of $300 for every passenger so transported and landed (see 19 CFR 4.80(b), unless it has been documented for the coastwise trade under chapter 121 of Title 46, United States Code. Under section 55103 (see 19 CFR 4.80a(a)(5)), a “passenger” is any person carried aboard a vessel who is not connected with the operation of the vessel, her navigation, ownership, or business (19 CFR 4.50(b)). In this regard, as resolved in a June 5, 2002, Customs Bulletin notice (Vol. 36, No. 23, p. 50, persons transported on a vessel would be passengers unless they were “directly and substantially” connected with the operation, navigation, ownership, or business of that vessel itself. In the current context, Headquarters ruling (HQ) 116752, of November 3, 2006, is instructive in explaining the operative administrative law applicable in this context, as follows:

[T]he Customs Service [now Customs and Border Protection (CBP)] has repeatedly ruled that if any persons are transported coastwise who are bona fide agents of the line or officers of companies acting as such agents and if such persons while on the voyage are concerned with observing and appraising the facilities offered, such personsare not ‘passengers’ under section 289 [now section 55103] and §4.50(b) (emphasis added) (HQ 103410, of May 5, 1978 (operations manager of freight line transported coastwise aboard freight line’s vessel to observe vessel’s operational pattern thereby deemed connected with operation and business of vessel so as not to be passenger when being transported for this purpose)).

HQ 116752 (emphasis added) (executive chef of cruise line transported aboard its vessel “to monitor and access the standards of [vessel’s culinary operation onboard” found to be connected with that vessel’s operation/business, and not considered passenger).

Further we note that 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 section 4.50(b) and 46 U.S.C. §55103 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 (November 5, 1975); see also HQ 116721 (September 25, 2006, quoting HQ 101699).

In the present case, the two individuals will board the PRESIDENT JACKSON to carry out the Annual Marine Fire System Inspection. The senior service technician and senior service supervisor are directly and substantially connected to the operation and business of the vessel and are not passengers for purposes of 46 U.S.C. §55103.

HOLDING:

Under the facts presented, the two individuals are not passengers for purposes of administering 46 U.S.C. §55103. Hence, the proposed coastwise transportation of the senior service technician and senior service supervisor aboard the PRESIDENT JACKSON would not be in violation of 46 U.S.C. §55103.

Sincerely,

Glen E. Vereb

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