HQ 112879
VES-3-CO:R:IT:C 112879 LLB
Mr. Robert A. McElroy, Jr.
Unocal Corporation
P.O. Box 237
Nederland, Texas 77627
RE: Coastwise trade; Lading and unlading; Test program;
Petroleum; Stationary vessel; 46 U.S.C. App. 883
Dear Mr. McElroy:
Reference is made to your letter of September 10, 1993,
which forwards for our consideration and determination the
question of whether your company may engage the services of a
foreign-flag tanker vessel in testing certain marine loading
facilities at your terminal in Texas.
FACTS:
It is proposed that Unocal test new petroleum-loading
facilities at the company's Beaumont Terminal located in
Nederland, Texas. The test would consist of loading 100,000
barrels of crude oil from the shore facility onto a foreign-flag
vessel. The crude oil would then be unladed from the vessel to
the same shore facility, with the vessel having remained
stationary during the entire process. The test is being
conducted in order to assess the readiness of the facility to aid
any necessary future drawdown of the national strategic petroleum
reserves in the event of a declared national emergency.
ISSUE:
Whether the lading and unlading of crude oil involving a
shore point in the United States and a non-coastwise-qualified
stationary vessel may be accomplished without violating the
prohibitions imposed by section 883 of title 46, United States
Code Appendix (commonly referred to as the Jones Act).
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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.
The Customs-Service consistently has held that the use of a
non-coastwise-qualified vessel as a moored facility does not
violate the coastwise laws, or any other law administered by the
Customs Service, provided that the vessel remains stationary.
Customs also has held that if the vessel is being loaded or
unloaded and must be moved to another location because of stress
of weather or other reason involving the vessel's safety,
subsequently is returned to the same point to continue its
loading or unloading, and neither loads nor unloads merchandise
at any other point in the United States, the coastwise laws are
not violated.
In light of the foregoing, we have determined that the
proposed test as previously outlined may proceed as planned
without consequence under the coastwise laws administered by the
Customs Service.
HOLDING:
The coastwise laws are not violated when cargo is laded
aboard a non-coastwise-qualified vessel in the United States and
is unladed from that vessel at the same point, the vessel having
remained stationary during the entire operation.
Sincerely,
Arthur P. Schifflin
Chief
Carrier Rulings Branch