VES-3-04/4-02/5-08 CO:R:IT:C 111796 JBW
Janne Julsrud
Counselor
Embassy of Norway
2720 34th Street, N.W.
Washington, D.C. 20008
RE: Entry and Clearance; Cruising License; Pleasure; Government
Vessels; Display Ship; Exhibition Ship; Viking Ship; 46
U.S.C. App. 104; 19 C.F.R. 4.94.
Dear Ms. Julsrud:
This letter is in response to your facsimile transmittal of
July 18, 1991, in which you request that the Customs Service
waive certain fees for three replica viking ships that will be
arriving at ports along the east coast of the United States.
FACTS:
In commemoration of Leif Eiriksson's journey to North
America one thousand years ago, three replica viking ships will
be calling at ports in the United States as part of a voyage
along the east coast of the United States and Canada. The voyage
is sponsored by the governments of Norway and Iceland, by the
Norwegian Broadcast Corporation, and by World City Discovery.
You state that the purposes of the voyage are to renew and
strengthen historical and cultural ties among the inhabitants of
the north Atlantic coasts and to promote an increased sensitivity
to our environment. The vessels will not be selling objects,
raising funds, or charging admission fees to board the ships.
The GAIA set sail from Bergen on May 17, 1991, and was
scheduled to arrive at Anse-aux-Meadows, Newfoundland, on August
2, 1991. Upon arriving in Newfoundland, the GAIA will be joined
by her sister ships, the OSEBERG and the SAGA SIGLAR. The ships
will then proceed on to St. John's, Newfoundland, Halifax, Nova
Scotia, Boston, Massachusetts, Newport, Rhode Island, New York,
New York, and Washington, D.C. A support ship will accompany the
viking ships while in the United States. You state that two of
the viking ships are privately owned and one is owned by a
governmental institution.
ISSUE:
Whether fees may be waived for exhibition vessels that are
calling in United States ports under the sponsorship of foreign
governments as part of a good-will voyage.
LAW AND ANALYSIS:
As a general matter, all vessels arriving in the United
States may be subject to a variety of statutorily mandated
duties, taxes, and fees according to the ownership, operation,
and use of the vessel. In its role as an administrative entity
of the government of the United States, the function of the
Customs Service is to interpret and implement these laws. We do
not possess the power or authority to waive duties or fees unless
a statutory exemption permits to do so.
United States law requires the master of any foreign vessel
arriving in a United States port, whether from a foreign port or
another United States port, to make an immediate report of
arrival (19 U.S.C. 1433, 19 C.F.R. 4.2) and to make a vessel
entry (19 U.S.C. 1435, 19 C.F.R. 4.3). Such vessels must clear
when bound for a foreign port (46 U.S.C. App. 91, 19 C.F.R.
4.60) or must have a permit to proceed from one United States
port to another (46 U.S.C. App. 313, 19 C.F.R. 4.87).
Title 46, United States Code Appendix, section 104 (46
U.S.C. App. 104), authorizes the issuance of cruising licenses
to exempt yachts of foreign registry employed exclusively as
pleasure vessels from these formal entry and clearance
procedures. This section, however, limits that exemption to
pleasure vessels of countries that extend reciprocal privileges
to United States pleasure vessels. Countries that have satisfied
this reciprocity requirement are listed in section 4.94(b) of the
Customs Regulations (19 C.F.R. 4.94(b)). Pleasure vessels of
Norwegian registry may be issued a cruising license. Id.
We cannot characterize the replica viking ships as pleasure
vessels. The term pleasure is defined to be:
1. An enjoyable sensation or emotion;
delight. 2. A source of enjoyment,
gratification, or delight. 3. Amusement,
diversion, or worldly enjoyment. 4. Sensual
gratification or indulgence....
The American Heritage Dictionary 951 (2d Ed. 1985). While we
recognize that the participants in the voyage may derive pleasure
from their experiences, the purpose of the voyage and use of the
vessels are not exclusively for the pleasure of the participants.
The voyage enjoys the financial sponsorship of two governments
and two private corporations. The goal of the voyage is, as you
state, to renew and strengthen historical and cultural ties among
the inhabitants of the north Atlantic coasts and to promote an
increased sensitivity to our environment. This specificity of
purpose is inconsistent with the use of the vessels exclusively
for pleasure. We therefore determine that the replica viking
ships, along with the support ships, are not eligible for a
cruising license.
You mention that one of the viking ships is owned by a
governmental institution. The Customs Regulations exempt from
the requirements relating to report of arrival and entry:
[A]ny vessel under the complete control and
management of the United States or any of its
agencies, if such vessel (1) is manned wholly
by members of the uniformed services of the
United States, by personnel in the civil
service of the United States, or both, and
(2) is transporting only property of the
United States or passengers traveling on
official business of the United States, or it
is in ballast.
19 C.F.R. 4.5(a); see 19 U.S.C. 1441(a) (1988). The
regulations further exempt vessels of any foreign nation
operating under these same conditions. 19 C.F.R. 4.5(c).
Clearance is not required for vessels not required to enter under
19 U.S.C. 1441. 19 C.F.R. 4.60(b)(3). From your letter and
the accompanying materials, however, we do not have sufficient
evidence to determine whether one of the vessels may be exempt
from the entry and clearance requirements as a government vessel.
To summarize, the ships participating in the voyage will be
required to enter, clear, and obtain permits to proceed. Fees
will be assessed for these requirements according to the schedule
published pursuant to section 4.98 of the Customs Regulations.
Provided the vessels do not load commercial cargo, the vessels
will not be assessed harbor maintenance fees. However, the
vessels will be arriving from a North American point and will be
assessed the regular tonnage tax of nine cents per net ton. 19
C.F.R. 4.20 & 4.21. Private vessels are also assessed a user
fee of twenty-five dollars. 19 C.F.R. 24.22(e).
For your information, the coastwise laws of the United
States generally prohibit the transportation of passengers or
merchandise between points in the United States embraced within
the coastwise laws in any vessel other than a United States
built, owned, and documented vessel. 46 U.S.C. App. 289 (Supp.
III 1985) & 46 U.S.C.A. App. 883 (West Supp. 1991). The
movement between ports in the United States of the replica viking
ships and support vessels, with crews, exhibition materials,
equipment, and stores does not constitute coastwise trade
provided that persons or goods are not laden at one coastwise
point and transported to another.
HOLDING:
The replica viking ships the GAIA, the OSEBERG, and the SAGA
SIGLAR, and their support vessels, are not exempt from the entry
and clearance laws administered by the Customs Service. They do
not qualify as pleasure vessels eligible for cruising licenses,
nor do they qualify, without further evidence, as government
vessels. The vessels will therefore be required to pay
applicable taxes and fees, as discussed above. The movement
between ports in the United States of the replica viking ships
and support vessels, with crews, exhibition materials, equipment,
and stores does not constitute coastwise trade provided that
persons or goods are not laden at one coastwise point and
transported to another.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch