VES-3-CO:R:IT:C 111445 LLB
Mr. J. Kelly Duncan
Jones, Walker, Waechter, Poitevent,
Carrere and Denegre
201 St. Charles Avenue
New Orleans, Louisiana 70170-5100
RE: Coastwise trade; Foreign-built derrick barges; Construction
cranes; 46 U.S.C. App. 883
Dear Mr. Duncan:
Reference is made to your letter of December 12, 1990, in
which you request that we issue a ruling on the proposed use by
your client of two foreign-built, foreign-flag, derrick barges in
the Gulf of Mexico. You ask that we accord your request
confidential treatment, as the release of information concerning
this proposal might prove detrimental to your client's
competitive position. We accede to your request regarding
confidentiality.
FACTS:
It is proposed that two foreign-built and documented derrick
barges would be employed in operations in the Gulf of Mexico.
The vessels, both self-propelled, would be used in the lifting
and setting of jackets and decks related to the construction of
offshore oil and gas platforms. It is stated that the barges
would remain stationary when performing their lifting and setting
operations, and that the transfer of materials would be
accomplished wholly by operation of the vessels' cranes except
for incidental movement.
ISSUE:
Whether the coastwise laws are violated when non-coastwise-
qualified stationary vessels are used in construction operations
in the Gulf of Mexico.
LAW AND ANALYSIS:
Title 46, United States Code App., section 883 (46 U.S.C.
App. 883) in pertinent part, prohibits the transportation of
merchandise between points in the United States embraced within
the coastwise laws, either directly or via a foreign port, or for
any part of the transportation, 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.
Under Section 4(a) of the Outer Continental Shelf Lands Act
of 1953, as amended (43 U.S.C. 1333(a) (OCSLA)), the laws of the
United States are extended to the subsoil and seabed of the Outer
Continental Shelf and to all artificial islands, and all
installations and other devices permanently or temporarily
attached to the seabed, which may be erected thereon for the
purpose of exploring for, developing, or producing resources
therefrom to the same extent as if the Outer Continental Shelf
were an area of exclusive Federal jurisdiction located within a
State. The provisions for dutiability of merchandise, as well as
the coastwise and other navigation laws, apply to production
platforms. C.S.D. 83-52.
Customs has held that the use of a non-coastwise-qualified
crane vessel to load and unload cargo is not coastwise trade and
does not violate 46 U.S.C. App. 883, provided, that any movement
of merchandise is effected exclusively by the operation of the
crane and not by movement of the vessel, except for necessary
movement which is incidental to a lifting operation while it is
taking place. However, movement of merchandise while it is
aboard the vessel or suspended from the crane, even between two
points within a harbor, which is neither necessary nor incidental
to a lifting operation by the crane would constitute coastwise
transportation of merchandise within the purview of 46 U.S.C.
App. 883. In the present matter it is stated that the barges
will remain stationary during actual lifting and setting
operations. In light of these facts, we find that the proposed
operation is permissible under 46 U.S.C. App. 883.
HOLDING:
Following a full review of the facts and analysis of the law
and applicable precedents, we have determined that the use of two
non-coastwise-qualified crane barges as detailed in this case is
permissible under 46 U.S.C. App. 883.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch