VES-3-CO:R:IT:C 113204 GEV
David W. Hiott
Fleet Captain
Las Carabelas
1900 North Chaparral
Corpus Christi, Texas 78401
RE: Coastwise Trade; Sailing School; 46 U.S.C. App. 289
Dear Mr. Hiott:
This is in response to your letter dated August 13, 1994,
requesting a ruling regarding the charging of a tuition fee for
crew training classes. Our ruling on this matter is set forth
below.
FACTS:
Las Carabelas Columbus Fleet Association (the "Association")
of Corpus Christi, Texas has a lease agreement with Spain for the
operation of the Spanish-flagged vessels NINA, PINTA & SANTA MARIA
for a term of fifty (50) years. The vessels are owned by the
government of Spain and have been operated by the Association for
crew training classes. These classes have, heretofore, been
offered free of charge. The Association now proposes to charge a
tuition fee for the aforementioned classes.
ISSUE:
Whether the charging of a tuition fee for crew training
classes aboard a foreign-flagged vessel constitutes a use in the
coastwise trade in violation of 46 U.S.C. App. 289.
LAW AND ANALYSIS:
Title 46, United States Code Appendix, 289 (the passenger
coastwise law), as interpreted by the Customs Service, prohibits
the transportation of passengers between points embraced within
the coastwise laws, either directly or by way of a foreign port,
in any vessel other than a vessel built in, documented under the
laws of, and owned by citizens of the United States. Pursuant to
4.50(b), Customs Regulations (19 CFR 4.50(b)), the word
- 2 -
"passenger," for purposes of this provision, is defined as "...any
person carried on a vessel who is not connected with the operation
of such vessel, her navigation, ownership, or business."
In our interpretation of 289, we have long-held that a
person transported on a vessel as a student in courses such as
oceanography or sailing and seamanship, when the presence of that
person is required on board the vessel as a part of his or her
course or training, is not a passenger, for purposes of the
coastwise laws. This is so regardless of whether a fee is charged
for the aforementioned instruction. Accordingly, the use of the
subject vessels by the Association as described above is not a use
in the coastwise trade in violation of 46 U.S.C. App.
289.
HOLDING:
The use of a vessel for purposes of offering instruction in
navigation and seamanship, regardless of whether a tuition fee is
charged for such instruction, is not considered a use in the
coastwise trade in violation of 46 U.S.C. App. 289.
Sincerely,
Arthur P. Schifflin
Chief