VES-3-02/07-CO:R:IT:C 111871 BEW

William E. Vajda
Daniel F. Young, Inc.
17 Battery Place North
New York, New York 10004

RE: Coastwise Trade; Passengers; Transportation of clergyman for purpose of conducting religious services on board the vessel; 46 U.S.C. App. 289;

Dear Mr. Vajda:

This is in response to your letter dated August 21, 1991, requesting a ruling concerning the application of the Jones Act to the proposed carriage of Rabbi Marshall Maltzman on the Norwegian passenger vessel SEABOURN SPIRIT from the port of New York to the port of Boston, via several ports in Canada.

FACTS:

In your letter your state that the owner of the SEABOURN SPIRIT has engaged a clergyman, Rabbi Marshall Maltzman, to conduct Yom Kippur services on board the subject vessel for the benefit of the vessel's Jewish passengers. You state that Rabbi Maltzman will embark the vessel at the port of New York on September 16, 1991, for the purpose of conducting Yom Kippur services on board the vessel. You state that there is no Jewish chaplain on board and that the Jewish holiday, Yom Kippur, occurs at sundown on September 17, 1991. You state that Yom Kippur is the most solemn day of the year for the Jews, a holiday devoted to contemplation and family. For this reason, you ask that Mrs. Maltzman be permitted to accompany Rabbi Maltzman.

The itinerary of the vessel is as follows:

The vessel will depart New York on September 16, 1991, sail to Camden, Maine, to the Canadian ports of Halifax, Nova Scotia, Montreal, Ouebec, and Charlottetown, Prince Edward Island, the vessel will then proceed to two Massachusetts ports, Boston and Martha's Vineyard, and return to the port of embarkation (New York) on September 30, 1991.

You state that Rabbi Maltzman must disembark from the vessel at the port of Boston in order to fulfill other duties and obligations. You state that neither Rabbi Maltzman nor Mrs. Maltzman will pay consideration for any type of passage.

ISSUE:

Whether the transportation of a clergyman and his wife on a foreign-flag vessel as described above constitutes a violation of 46 U.S.C. App. 289.

LAW AND ANALYSIS:

Generally, 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 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.

The passenger coastwise law, 46 U.S.C. App. 289, provides that:

No foreign vessel shall transport passengers between ports or places in the United States either directly or by way of a foreign port, under penalty of $200 for each passenger so transported and landed.

For purposes of the coastwise laws, a vessel "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." (Section 4.50(b), Customs Regulations.)

Section 4.80a(b)(2) of the Customs Regulations (19 CFR 4.80a(b)(2) provides that, "if the passenger is on a voyage to one or more one or more coastwise ports and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks at a coastwise point other than the port of embarkation, there is a violation of the coastwise law" (46 U.S.C. App. 289). We have ruled that if a passenger is on a voyage to one or more coastwise ports and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks the vessel at a nearby foreign port or if the passengers embark and disembark at the same coastwise port, there is no violation of section 289.

In Headquarters ruling 104915, dated November 10, 1980, it was ruled that two doctors from the Department of Radiology of the University of California and their wives, who participated as faculty members for a radiology seminar which was held on board the M/V ROYAL VIKING SEA, were not deemed passengers as defined in section 4.50(b) because they were sufficiently connected with the business of the vessel within the meaning of section 4.50(b). The doctors and their wives, who assisted in the seminars by taking attendance of the registrants and setting up the audiovisual equipment, were permitted to board the vessel at San Francisco and disembark from the vessel a port in Alaska. Customs held that no violation of the coastwise laws would occurred when the subject persons disembarked from the vessel.

It appears that one aspect of the subject vessel's activities is to make available religious services to those persons who wish to partake in such services where cruises extend over religious holidays. Clergymen who are on the vessel for the purpose of directing religious services aboard the vessel, would not be deemed passengers as defined in section 4.50(b) because they would be sufficiently connected with the business of the vessel within the meaning of section 4.50(b). Accordingly, no violation of the coastwise laws would occurred when Rabbi Marshall disembarked from the vessel at the port of Boston,

With regard to Mrs. Marshall, the facts presented are not sufficient to show that she is connected with the actual operation, navigation, ownership, or business of the vessel within the meaning of section 4.50 (b) of the Customs Regulations. While a clergyman who would be directly or immediately connected with the vessel's operation, navigation, ownership, or business may be exempt from passenger status under section 4.50(b), the wife of such a person who is accompany her husband for family purposes, would be remotely connected with the business of the vessel and as such would not be exempt from passenger status. If Mrs. Marshall embarks at the port of New York, proceeds with the vessel to the Canadian ports and disembark at the port of New York, her transportation would not be violative of the statute. The transportation of Mrs. Marshall from the port of New York to Boston, via Canada, would be prohibited under the provisions of section 289.

HOLDING:

The request to transport the subject clergyman is granted; the subject clergyman is not considered a passenger for the purposes of 46 U.S.C. App. 289 by virtue of his connection with the business of the vessel.

The transportation of the subject clergyman's wife whose is accompany her husband for family reasons would be a violation of 46 U.S.C. App. 289 if she were permitted to disembark from the vessel a coastwise point other then the point of embarkation.

Sincerely,

Stuart P. Seidel
Director
International Trade
Compliance Division Branch

cc: District Director, New York, Boston