VES-3-04 CO:R:IT:C 112190 MLR
Merlon E. Wiggin
Peconic Associates, Inc.
One Bootleg Alley
P.O. Box 672
Greenport, NY 11944
RE: Applicability of the coastwise laws to the use of a
historic vessel as a moored attraction; REGINA MARIS.
Dear Mr. Wiggin:
This is in reference to your letter of March 27, 1992, in
which you seek advice on behalf of Save The Regina Maris, Ltd.,
as to the proposed use of a historic vessel as a moored
attraction.
FACTS:
Save The Regina Maris, Ltd., the owner of the REGINA MARIS,
is seeking the U.S. Coast Guard's certification of the vessel as
a moored attraction, and U.S. Customs endorsement. Save The
Regina Maris, Ltd., has restored the vessel, which was built in
Denmark. It is anticipated that the vessel will primarily be
maintained at the Maritime Museum dock in Greenport, New York,
in the winter, and moved between that location and the Main
Street dock for use as a moored attraction in the spring, summer,
and fall. The vessel may also travel to the Long Wharf in Sag
Harbor at least once during the Summer season. Initially, the
vessel will be moved by tug until its existing power plant can be
replaced or rebuilt. The vessel will not carry passengers or
freight between any ports on the coast, and the only time that
the public will be aboard is when it is tied up to a berth.
ISSUE:
Are there any restrictions imposed by the U.S. Customs laws
on the use of a historic vessel as a moored attraction in the
territorial waters of the United States.
LAW AND ANALYSIS:
Generally, the laws referred to as the coastwise laws (e.g.,
46 U.S.C. App. 289 and 883, and 46 U.S.C. 12106, and 12110)
prohibit the transportation of merchandise or passengers between
points in the United States embraced within the coastwise laws by
any vessel other than a vessel built in, properly documented
under the laws of, and owned by citizens of the United States
(i.e., a coastwise-qualified vessel). The passenger coastwise
law, 46 U.S.C. App. 289, provides that:
No foreign vessel shall transport passengers between
ports or places in the United States either directly or
by way of a foreign port, under penalty of $200 for
each passenger so transported and landed.
For purposes of the coastwise laws, a vessel "passenger" is
defined as "... any person carried on a vessel who is not
connected with the operation of such vessel, her navigation,
ownership, or business." (19 CFR 4.50(b)).
In interpreting the coastwise laws as applied to the
transportation of passengers, we have ruled that the carriage of
passengers entirely within territorial waters, even though they
disembark at their point of embarkation and the vessel touches no
other point, is considered coastwise trade subject to the
coastwise laws. The transportation of passengers to the high
seas or foreign waters and back to the point of embarkation,
often called a "voyage to nowhere," is not considered coastwise
trade, assuming the passengers do not go ashore, even
temporarily, at another coastwise point.
Points in the United States embraced within the coastwise
laws include points in the territorial waters of the United
States (defined as the belt, three nautical miles wide, adjacent
to the coast of the United States and seaward of the territorial
sea baseline) and points located in internal waters (those waters
landward of the territorial sea baseline, in cases where the
baseline and the coastline differ).
The coastwise law pertaining to the transportation of
merchandise, 46 U.S.C. app. 883 (often called the "Jones Act"),
provides, in pertinent part, that:
No merchandise shall be transported by water, or by
land and water, on penalty of forfeiture of the
merchandise (or a monetary amount up to the value
thereof as determined by the Secretary of the Treasury,
or the actual cost of the transportation, whichever is
greater, to be recovered from any consignor, seller,
owner, importer, consignee, agent or other person or
persons so transporting or causing said merchandise to
be transported), between points in the United States...
embraced within the coastwise laws, either directly or
via a foreign port, or for any part of the
transportation, in any other vessel than a vessel
built in and documented under the laws of the United
States and owned by persons who are citizens of the
United States ....
"Merchandise" is defined in 19 U.S.C. 1401(c), as "goods, wares,
and chattels of every description, and includes merchandise the
importation of which is prohibited...."
It has been mentioned that the vessel will move between the
Maritime Museum dock in Greenport, New York, and the Main Street
dock, and that the vessel possibly will travel to the Long Wharf
in Sag Harbor. The key to the coastwise laws, is the provision
of transportation between coastwise points. No law or regulation
administered by the United States Customs Service would preclude
the use of the subject vessel as a moored attraction, so long as
the vessel remains in a stationary position. However, please be
advised that although the vessel will not be in use in the
coastwise trade when it is moored to the dock, if it is necessary
to transport passengers or merchandise to the REGINA MARIS via
another vessel from a coastwise point, the transporting vessel
must be coastwise-qualified. This is because the REGINA MARIS
itself would be considered a coastwise point by virtue of its
location within territorial waters. Further, no passengers or
merchandise may be embarked/laden, for example, at the Maritime
Museum dock and disembarked/unladen at the Main Street dock.
We emphasize that this ruling letter is to be applied only
with respect to transaction involving operations identical to
those set forth in this ruling letter. 19 CFR 177.9(b)(4).
Furthermore, although the Customs Service determines whether an
activity constitutes an engagement in the coastwise trade as
discussed above, the documentation of vessels under the laws of
the United States is solely within the jurisdiction of the U.S.
Coast Guard.
HOLDING:
The use of a historic vessel as a moored attraction within
the U.S. territorial waters is not prohibited under the coastwise
laws administered by the U.S. Customs Service.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch