VES-3-02-RR:BSTC:CCI H006044 GOB
Mike Moeller
Operations Department
Carolina Shipping Company
1064 Gardner Road
Fairfield Office Park, Suite 312
P.O. Box 70988
Charleston, SC 29415-0988
RE: Coastwise Transportation; 46 U.S.C. §§ 55101, 55103; 19 CFR § 4.50(b)
Dear Mr. Moeller:
This letter is in response to your correspondence which this office received on
January 29, 2007 with respect to the coastwise transportation of certain individuals. Our ruling is set forth below.
FACTS:
You request that three individuals, who will be supervising and performing welding work on the M/V STENA PERFORMANCE (the “vessel”), a non-coastwise-qualified vessel, on its voyage from Charleston, South Carolina to St. Croix, U.S. Virgin Islands, not be classified as “passengers.”
ISSUE:
The applicability of the coastwise laws to the proposed transportation.
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.
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) and provides that:
(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-
is wholly owned by citizens of the United States for purposes of engaging in the coastwise traffic; and
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.
Section 4.50(b), Customs Regulations (19 CFR § 4.50(b)) provides as follows:
A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.
Title 46, United States Code, section 55101 (recodified by Pub. L. 109-304, enacted on October 6, 2006) provides in pertinent part as follows:
In General. Except as provided in subsection (b), the coastwise laws apply to the United States, including the island territories and possessions of the United States.
Exceptions. The coastwise laws do not apply to –
. . .
the Virgin Islands until the President declares by proclamation that the coastwise laws apply to the Virgin Islands.
The President of the United States has not declared by proclamation that the coastwise laws extend to the U.S. Virgin Islands. Therefore, the coastwise laws, including 46 U.S.C. § 55103, do not apply to the proposed transportation of the three individuals from Charleston, South Carolina to St. Croix, U.S. Virgin Islands.
HOLDING:
Pursuant to 46 U.S.C. § 55101, the coastwise laws, including 46 U.S.C. § 55103, do not apply to the proposed transportation of the three individuals from Charleston, South Carolina to St. Croix, U.S. Virgin Islands. Therefore, there is no prohibition under the coastwise laws with respect to the proposed transportation
Sincerely,
Glen E. Vereb
Chief
Cargo Security, Carriers and Immigration Branch