VES-3-02/11 VES-10-03 CO:R:IT:C 113000 GOB
Mr. Bob Dewitz
Vice President, Development
Honolulu Shipyard, Inc.
2234 Hoonee Place
Honolulu, Hawaii 96819
RE: Coastwise trade; transportation of passengers and merchandise;
towing; 46 U.S.C. App. 289; 46 U.S.C. App. 883; 46 U.S.C. App.
316; floating movie set platforms
Dear Mr. Dewitz:
This is in response to your letter dated January 19, 1994 with
respect to floating movie set platforms.
FACTS:
You describe the facts as follows:
Our firm has been contracted to design and build a series of
floating movie set platform [sic] for use in a film being
produced in Hawaii...
...
In operation, the floats would be owned by the movie producer
and movie sets would be constructed upon them. The floating
movie set would be moored within the State of Hawaii's small
boat harbor for 80% of the time, and moored out of the harbor
approx. one quarter mile for about 15% of the time, and would
be in open water (1 mile offshore, under positive control of
tugboats) for the remaining 5% of the time...
The only personnel on-board the floats would be employees of
the film company. Upon completion of filming, the floating
sets will be dismantled and scrapped.
ISSUE:
Whether the above-described activity constitutes coastwise
trade within the meaning of 46 U.S.C. App. 289, 46 U.S.C. App. 883,
and/or 46 U.S.C. 316.
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LAW AND ANALYSIS:
Generally, the coastwise laws prohibit the transportation of
passengers or merchandise between points in the United States
embraced within the coastwise laws in any vessel other than a
vessel built in, documented under the laws of, and owned by
citizens of the United States.
The coastwise laws generally apply to points in the
territorial sea, which is defined as the belt, three nautical miles
wide, seaward of the territorial sea baseline, and to points
located in internal waters, landward of the territorial sea
baseline.
46 U.S.C. App. 883, the coastwise merchandise statute often
called the "Jones Act", provides in part that no merchandise shall
be transported 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, documented under the laws of, and owned by citizens of
the United States.
The coastwise law applicable to the carriage of passengers
is found in 46 U.S.C. App. 289 and 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 a penalty of $200 for each passenger so
transported and landed.
19 CFR 4.50 (b) defines "passenger" as follows:
...any person carried on a vessel who is not connected with
the operation of such vessel, her navigation, ownership, or
business.
46 U.S.C. App. 316(a) prohibits the use of a non-coastwise-
qualified vessel to tow any vessel, other than a vessel in
distress, between ports or places in the United States embraced
with the coastwise laws, either directly or by way of a foreign
port, or to do any part of such towing, or to tow any such vessel
between points in a harbor of the United States.
We find that, provided the only individuals transported on the
floating movie set platforms are employees of the film company, the
platforms will not be engaged in the carriage of passengers within
the meaning of 46 U.S.C. App. 289 because the employees are not
passengers within the meaning of 19 CFR 4.50(b).
We further find that the transportation of any articles or
equipment other than articles or equipment which are necessary for
the operation of the platforms as a vessel, will constitute the
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carriage of merchandise within the meaning of 46 U.S.C. App. 883.
Such carriage must be accomplished by a coastwise-qualified vessel.
Articles such as cameras, film, movie props, etc. constitute
merchandise within the meaning of 46 U.S.C. App. 883 such that
their carriage must be accomplished by a coastwise-qualified
vessel. However, such merchandise may be transported by a non-
coastwise-qualified vessel if the merchandise is laden on the
vessel and unladen from the vessel at the exact same point.
Additionally, if tugboats or any other vessels tow the
platforms, such activity will be within the scope of 46 U.S.C. App.
316(a) and must be performed by a coastwise-qualified tugboats or
vessels.
We note that if the subject platforms are built in the United
States and if United States-ownership requirements are satisfied,
the platforms would qualify for a coastwise endorsement. Your
local U.S. Coast Guard office can provide additional information
with respect to the documentation of the platforms.
HOLDINGS:
1. Under the conditions stated above, the floating movie set
platforms will not be engaged within coastwise trade within the
meaning of 46 U.S.C. App. 289.
2. The transportation of any articles or equipment other than
articles or equipment which are necessary for the operation of the
platforms as a vessel will constitute the carriage of merchandise
within the meaning of 46 U.S.C. App. 883. Such carriage must be
accomplished by a coastwise-qualified vessel. Articles such as
cameras, film, movie props, etc. constitute merchandise within the
meaning of 46 U.S.C. App. 883 such that their carriage must be
accomplished by a coastwise-qualified vessel. However, such
merchandise may be transported by a non-coastwise-qualified vessel
if it is laden on the vessel and unladen from the vessel at the
exact same point.
3. Any tugboats or vessels which tow the platforms must be
coastwise-qualified because such towing is within the scope of 46
U.S.C. App. 316(a).
Sincerely,
Arthur P. Schifflin
Chief
Carrier Rulings Branch