VES-3-02/VES-3-19-RR:IT:EC 114283 GG
Captain Spense Rohrlick
22 Holland Lane
New Paltz, New York 12561
RE: Coastwise Trade; Foreign-Built Vessel; Sailing School; Bed
and Breakfast; 46 U.S.C. App. 289.
Dear Captain Rohrlick:
This is in response to your letters, dated March 6 and March
9, 1998, which ask whether certain proposed uses of your trawler
will violate the U.S. coastwise trade laws. Our ruling on this
matter is set forth below.
FACTS:
You own a U.S. documented 1986 37' Newburyport Double Cabin
trawler. This vessel was built in Taiwan. You would like to use
your trawler to conduct basic and advanced seamanship classes on
the Hudson River. During periods when it is not booked for
seamanship classes, you plan to use your vessel as a floating
"boat and breakfast" for up to four people. The vessel would not
leave its berth when being used solely for the accommodation of
visitors.
ISSUE:
Whether the use of your trawler for seamanship classes and
for accommodation purposes violates the U.S. coastwise laws.
LAW AND ANALYSIS:
Title 46, United States Code Appendix, Section 289 (46
U.S.C. App. 289, the passenger coastwise law), prohibits the
transportation of passengers between points embraced within the
coastwise laws of the United States, either directly or by way of
a foreign port, in any vessel other 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. For purposes of
Section 289, "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). The
coastwise laws generally apply to points in the territorial sea,
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.
In our interpretation of 46 U.S.C. App. 289, Customs has
long-held that a person transported on a vessel as a student in
bona fide instructional courses in sailing and
navigation/seamanship, when the presence of that person is
required on board as part of his or her course or training, is
not a passenger for purposes of the coastwise laws . See Customs
Headquarters Ruling Letters 108166, dated February 27, 1986, and
114263, dated March 3, 1998. This is so regardless of whether a
fee is charged for the aforementioned instruction.
Similarly, we have consistently interpreted the use of a
foreign-built vessel as a floating hotel or bed and breakfast for
overnight accommodations to be non-violative of the coastwise
laws, provided the vessel remains moored or anchored while
serving as a lodging facility. The transportation of hotel
guests from one coastwise point to another would be prohibited.
See Customs Headquarters Ruling Letters 110236, dated May 22,
1989, and 110239, dated May 24, 1989.
HOLDING:
The transportation of passengers on a foreign-built vessel
for the purpose of providing instructional courses in sailing and
navigation/seamanship, and the use of the vessel while moored as
an overnight lodging facility, are activities which do not
violate the U.S. coastwise laws.
Sincerely,
Jerry Laderberg
Chief
Entry Procedures and Carriers
Branch