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HQ H027231

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May 2, 2008

VES-3-02-OT:RR:BSTC:CCI H027231 LLB

CATEGORY: CARRIER

Mr. Robert M. Moore
Vice President Marine & Terminal Operations Atlantic Container Line
194 Wood Avenue South, Suite 500
Iselin, New Jersey 08830

RE: Voyage-to-Nowhere; 46 U.S.C. § 55103; HQ H021838 (Jan. 24, 2008)

Dear Mr. Moore:

This letter is in response to your May 1, 2008, correspondence, in which you inquire about the transportation of the four individuals mentioned therein aboard the M/V ATLANTIC COMPASS. Our decision follows.

FACTS

The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified M/V ATLANTIC COMPASS (the “vessel”). The individuals will embark in Elizabeth, New Jersey on May 14, 2008 and remain onboard until they disembark in Elizabeth, New Jersey on May 17, 2008.

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. See 33 C.F.R. § 2.22(a)(2)(2008). 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.

In its administration of 46 U.S.C. § 55103, U.S. Customs and Border Protection has ruled that the carriage of passengers entirely within territorial waters, even though the passengers disembark at their point of embarkation and the vessel touches no other coastwise point, is considered coastwise trade subject to the coastwise laws. However, the transportation of passengers to the high seas (i.e. beyond U.S. territorial waters) and back to the point of embarkation, assuming the passengers do not go ashore, even temporarily, at another United States point, often called a "voyage-to-nowhere", is not considered coastwise trade. See HQ H014892 (Aug. 17, 2007); HQ 113379 (Mar. 23, 1995); and 29 Opinions of the Attorney General 318; see also HQ H021838 (Jan. 24, 2008).

Based on the facts you provided, the coastwise laws are inapplicable to the subject individuals’ voyage. The proposed itinerary beginning in Elizabeth and ending at the same port does not violate section 55103 because it constitutes a voyage-to-nowhere and does not involve transportation between two coastwise points. Insofar as the coastwise laws are not applicable to the facts you provided, we are not addressing whether the subject individuals are passengers within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b).

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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