VES-3-02-OT:RR:BSTC:CCI H036995 JLB
Mr. Bert Swets
Vice President
Marine & Technical Operations
Disney Cruise Line
P.O. Box 10210
Lake Buena Vista, Florida 32830-0210
RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 C.F.R. § 4.50(b)
Dear Mr. Swets:
This letter is in response to your correspondence dated August 29, 2008, in which you request a ruling on whether the coastwise transportation of the individuals mentioned therein aboard the DISNEY MAGIC constitutes a violation of 46 U.S.C. § 55103. Our ruling on your request follows.
FACTS
The voyage in question involves the transportation of the subject individuals aboard the non-coastwise-qualified DISNEY MAGIC (“the vessel”). The individuals will embark on September 6, 2008 at Port Canaveral, Florida and will disembark at the port of Norfolk, Virginia for the vessel’s annual refit on September 8, 2008. After the refit period is completed on September 21, 2008, most of the approximately six hundred individuals will travel aboard the vessel from Norfolk back to Port Canaveral, disembarking on September 23, 2008. These individuals include, but are not limited to, carpenters and tile installers to perform cabin refurnishing, technicians to perform deck and pool surfacing, individuals to install shipwide flooring, upholsterers, technicians to perform tank cleanings, and electricians to install wiring for information technology.
ISSUE
Whether the individuals described above would be “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b)?
LAW AND ANALYSIS
The coastwise passenger statute, former 46 U.S.C. App. § 289 recodified as 46 U.S.C. § 55103, pursuant to P.L. 109-304 (October 6, 2006), states that no foreign vessel shall transport passengers “between ports or places in the United States to which the coastwise laws apply, either directly or by way of a foreign port,” under a penalty of $300 for each passenger so transported and landed. See also 19 C.F.R. § 4.80(b)(2). 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.
Under 46 U.S.C. § 55103, a “passenger” is any person carried aboard a vessel “who is not connected with the operation of the vessel, her navigation, ownership, or business.” See also 19 C.F.R. § 4.50(b). In this regard, U.S. Customs and Border Protection (“CBP”) provides a strict interpretation of “passenger” defining the term as persons transported on a vessel unless they are "directly and substantially" connected with the operation, navigation, ownership or business of that vessel itself. See Customs Bulletin of June 5, 2002, Vol. 36, No. 23, at pp. 50.
Pursuant to Headquarters Decision 101699, dated November 5, 1975, it is well settled that "workmen, technicians, or observers transported by vessel between ports of the United States are not classified as ‘passengers’ within the meaning of section 4.50(b) and section 289 [now section 55103] if they are required to be on board to contribute to the accomplishment of the operation or navigation of the vessel during the voyage or are on board because of a necessary vessel ownership or business interest during the voyage." See also Headquarters Decision 116721, dated September 25, 2006. Under the facts presented, the individuals traveling aboard would be “directly and substantially” related to the operation and business of the vessel during the voyage and would not be considered “passengers” under 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Consequently, the coastwise transportation of the subject individuals is not in violation of 46 U.S.C. § 55103.
HOLDING
The subject individuals are not “passengers” within the meaning of 46 U.S.C. § 55103 and 19 C.F.R. § 4.50(b). Therefore, the coastwise transportation of such individuals is not in violation of 46 U.S.C. § 55103.
Sincerely,
Glen E. Vereb, Chief
Cargo Security, Carriers and Immigration Branch