VES-3-07 CO:R:IT:C 112695 JBW
Mr. David K. Riccitiello
West Coast Bridge, Inc.
3781 Mallard Drive
Benicia, CA 94510
RE: Coastwise; Documentation; Construction; 46 U.S.C. app. 883;
46 U.S.C. app. 289.
Dear Mr. Riccitiello:
This letter is in response to your request for a ruling on
the application of the coastwise laws to the use of a vessel for
construction activities.
FACTS:
West Coast Bridge, Inc., is a corporation engaged in marine
construction. West Coast Bridge currently uses a vessel that is
not documented for the coastwise trade for repair of pier fenders
in San Francisco Bay. While in use, the vessel remains stationary;
the vessel is tied to the structure being repaired or is anchored.
The vessel is maneuvered as the work progresses. You state that
the limited space on the vessel requires that workmen and supplies
arrive via small crew boats and barges. The workmen and supplies
are generally not transported on the vessel.
ISSUE:
Whether the use of a vessel for construction activities in
United States territorial and internal waters constitutes an
engagement in the coastwise trade.
LAW AND ANALYSIS:
The coastwise laws of the United States prohibit the
transportation of merchandise between points in the United States
embraced within the coastwise laws in any vessel other than a
vessel built in the United States, documented under the laws of
the United States, and owned by persons who are citizens of the
United States. 46 U.S.C. app. 883 (referred to as "the Jones
Act"). Generally, the coastwise laws apply to points within the
territorial sea of the United States, 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, in cases where the baseline and the coastline differ.
Headquarters Ruling Letter 111275, dated November 13, 1990.
The Customs Service has held that a non-coastwise-qualified
vessel used as a moored facility within territorial and internal
waters does not engage in the coastwise trade and consequently does
not violate the coastwise laws, or any other law administered by
the Customs Service, provided that the vessel remains stationary.
E.g., C.S.D. 89-107, 23 Cust. B. & Dec., No. 44, 8, 9 (1989).
Thus, the use of a vessel as a moored, stationary construction
facility is not an engagement in the coastwise trade. If, however,
the vessel is not secured or otherwise moves while in use, then
such operations would be prohibited by the coastwise laws.
We note that although the vessel under consideration may not
be engaging in the coastwise trade while in operation as a moored,
stationary construction facility, the vessel itself will become a
coastwise point if used as such. C.S.D. 89-107. Therefore, any
vessel moving merchandise or workmen between the stationary vessel
and another coastwise point must be documented for the coastwise
trade. 46 U.S.C. app. 289 & 883. Furthermore, the construction
vessel itself may not have any passengers or merchandise aboard
during its initial movement to the work site, during its movement
from work site to work site, or during its movement following the
completion of the project, provided these sites are points subject
to the application of the coastwise laws. C.S.D. 89-107.
This ruling does not address issues within the purview of
other governmental agencies, e.g., the United States Coast Guard
for issues relating to vessel documentation, safety, and
inspection. If you wish to contact the Coast Guard about these
matters, you may communicate with your local Coast Guard office or
Coast Guard Headquarters at the following address:
Thomas Willis
Chief, Vessel Documentation
United States Coast Guard (GMVI-5)
2100 Second Street, S.W.
Washington, D.C. 20593-0001
HOLDING:
The use of a vessel as a moored, stationary construction
facility is not an engagement in the coastwise trade. Under such
circumstances, the vessel becomes a coastwise point itself.
Transportation of passengers and merchandise to or from the barge
and other coastwise points must be by coastwise-qualified vessels.
While being moved from work site to work site, the vessel may not
transport passengers or merchandise.
Sincerely,
Acting Chief