VES-3-12-RR:IT:EC 114586 GOB
Jeanne M. Grasso
Dyer Ellis & Joseph
Watergate, Eleventh Floor
600 New Hampshire Ave., N.W.
Washington, D.C. 20037
RE: Coastwise transportation of merchandise; Outer continental shelf; Supply vessel;
46 U.S.C. App. 289, 883; 43 U.S.C. 1333(a)
Dear Ms. Grasso:
This is in response to your letter of January 15, 1999 on behalf of Western Geophysical (“Western”).
FACTS:
You describe the pertinent facts as follows. Western operates five Panamanian-flag and two U.S.-flag vessels on the outer Continental Shelf in support of offshore operations. These research vessels are not attached to the outer Continental Shelf. The vessels are supplied by Western’s Panamanian-flag supply vessel which operates out of ports in the U.S. Gulf of Mexico.
You seek confirmation that a foreign-flag supply vessel may deliver supplies to a U.S.-flag or a foreign-flag research vessel operating on the outer Continental Shelf (but not attached to the outer Continental Shelf) without violating the coastwise laws.
For the purpose of this ruling, we assume that the research vessels are not in the U.S. territorial waters.
ISSUE:
The applicability of the coastwise laws to the above-stated facts.
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. A vessel that is built in, documented under the laws of, and owned by citizens of the United States, and which obtains a coastwise endorsement from the U.S. Coast Guard, is referred to as "coastwise-qualified."
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. Equipment and supplies of the transporting vessel are not considered “merchandise” for this purpose. Equipment and supplies which are not equipment and supplies of the transporting vessel are “merchandise” for this purpose.
The coastwise law applicable to the carriage of passengers is found in 46 U.S.C. App. 289 (sometimes called the “Passenger Vessel Act” and the “coastwise passenger statute”) 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.
Section 4.50(b), Customs Regulations (19 CFR 4.50(b)) states as follows:
A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of such vessel, her navigation, ownership, or business.
Section 4(a) of the Outer Continental Shelf Lands Act of 1953, as amended (43 U.S.C. 1333(a); "OCSLA"), provides in part that 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 within a state."
Under the foregoing provision, we have ruled that the coastwise laws and other Customs and navigation laws are extended to vessels during the period they are secured to or submerged onto the seabed of the outer Continental Shelf ("OCS"). We have applied that principle to drilling platforms, artificial islands, and similar structures, as well as to devices attached to the seabed of the outer Continental Shelf for the purpose of resource exploration operations.
As stated above, for the purpose of this ruling we assume that the research vessels are not within the territorial waters of the U.S.
You state that the research vessels which are supplied by Western’s Panamanian-flag supply vessel are not attached to the outer Continental Shelf.
Accordingly, the research vessels are not coastwise points. Therefore, merchandise and passengers may be transported to these non-coastwise-points by a non-coastwise-qualified vessel.
We note that if the research vessels were within the territorial waters of the U.S. or were attached to the outer Continental Shelf, they would be considered coastwise points.
HOLDING:
A vessel which is not attached to the outer Continental Shelf and not within U.S. territorial waters is not considered a coastwise point for the purpose of the coastwise laws. Accordingly, a non-coastwise-qualified supply vessel may transport merchandise and passengers from a U.S. port to such a vessel.
Sincerely,
Jerry Laderberg
Chief,
Entry Procedures and Carriers Branch