VES-3-CO:R:P:C: 110588 LLB
Mr. Ed Jimenez
P.O. Box 21
South Gate, California 90280
RE: Applicability of the Coastwise Passenger and Merchandise
Transportation Statutes to the Operation of a Permanently
Moored Floating Restaurant Located within the Territorial
Waters of the United States
Dear Mr. Jimenez:
Reference is made to your letter of October 18, 1989, in
which you seek advice as to whether your proposed operation of a
restaurant on a moored barge might be interpreted as engagement
in the coastwise trade.
FACTS:
It is anticipated that you will operate a floating restau-
rant aboard a barge in a permanently moored condition. The barge
will be moored within "the City waters", at a spot not further
identified. The inquiry is made as to whether such a use would
be considered an employment in the coastwise trade.
ISSUE:
Do the coastwise trade laws prohibit the use of a non-
qualified barge as the platform for a permanently moored
restaurant facility within territorial waters.
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). Points embraced within the
coastwise laws include all points within the territorial and
navigable waters of the United States. United States territorial
waters consist of the territorial sea, defined as the belt, 3
nautical miles wide, adjacent to the coast of the United States
and seaward of the territorial sea baseline.
The key, of course, is the provision of transportation
between coastwise points. Customs has had occasion in the past
to rule on the use of permanently moored vessels for various
purposes. Here, as in the past, so long as the vessel remains in
a stationary position there are no coastwise trade implications
to its use.
It is not stated whether the barge is to be moored dockside,
or out in a harbor, or otherwise. Please be advised that
although the barge will not be in use in the coastwise trade, if
it is necessary to transport persons or merchandise to the
restaurant via boat from a coastwise point, the transporting
vessel must be coastwise-qualified. This is because the
restaurant itself would be considered a coastwise point by virtue
of its location within territorial waters.
HOLDING:
The use of a barge to house a permanently moored restaurant
facility 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