HQ H045869

December 3, 2008

VES-3-02-OT:RR:BSTC:CCI H045869 GG

CATEGORY: Carriers

Mr. Adam Young

S5/Norton Lilly International

952 Houston Northcutt Blvd, Suite 100

Mount Pleasant, South Carolina 29464

RE: Coastwise Transportation; 46 U.S.C. § 55103; 19 CFR § 4.50(b)

Dear Mr. Young:

This is in response to your correspondence of December 2, 2008, in which
you inquire about the coastwise transportation of four individuals. Our
ruling is set forth below.

FACTS

The voyage in question involves the transportation of the subject
individuals aboard the non-coastwise-qualified vessel M/V YORKTOWN
EXPRESS (the "vessel") from Charleston, South Carolina, to Norfolk,
Virginia, during the period from December 5, 2008, to on or about
December 16, 2008, for the purpose of installing a new "Alpha Lube"
system.

ISSUE

Whether the subject individuals are "passengers" within the meaning of
46 U.S.C. § 55103 and 19 CFR § 4.50(b).

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. Such a
vessel, after it has obtained a coastwise endorsement from the U.S.
Coast Guard, is said to be "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.

The coastwise law applicable to the carriage of passengers is found in
46 U.S.C. § 55103 (recodified by Pub. L. 109-304, enacted on October 6,
2006) and provides that:

> \(a\) In General. Except as otherwise provided in this chapter or
> chapter 121 of this title, a vessel may not transport passengers
> between ports or places in the United States to which the coastwise
> laws apply, either directly or via a foreign port, unless the
> vessel\--
>
> \(1\) is wholly owned by citizens of the United States for purposes of
> engaging in the coastwise trade; and
>
> \(2\) has been issued a certificate of documentation with a coastwise
> endorsement under chapter 121 or is exempt from documentation but
> would otherwise be eligible for such a certificate and endorsement.
>
> \(b\) Penalty. The penalty for violating subsection (a) is \$300 for
> each passenger transported and landed.

Section 4.50(b), U.S. Customs and Border Protection ("CBP") Regulations
(19 CFR § 4.50(b)) provides 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.

In the present case, the subject individuals will be transported on the
vessel for the purpose of installing a new Alpha Lube system. In this
context, and in accordance with previous Headquarters rulings, workmen,
technicians, or observers transported by vessel between ports of the
United States are not classified as "passengers" within the meaning of
46 U.S.C. § 55103 and 19 CFR § 4.50(b), 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]{.underline} CBP Ruling HQ 101699 (November 5, 1975);
[see]{.underline} [also]{.underline} HQ 116721 (September 25, 2006),
quoting HQ 101699.

Thus, to the extent that the individuals would be engaged in any
shipboard activities while traveling on the foreign vessel between
coastwise ports, that would be "directly and substantially" related to
the operation or business of the vessel itself, as would be the case
under the facts herein submitted, such individuals would not be
considered to be passengers ([see]{.underline} HQ 116721, supra;
[and]{.underline} [see]{.underline} HQ 116659 (May 19, 2006),
referencing the "direct and substantial" test). [See]{.underline}
[also]{.underline}, e.g., Customs telex 104712 (July 21, 1980), finding
that repairmen were not passengers when carried aboard a foreign vessel
between U.S. ports "for \[the\] purpose of repairing vessel en route
between such ports."

We find that the proposed activity in this case is directly and
substantially connected with the operation and business of the vessel.
Therefore, we determine that the subject individuals are not
"passengers" within the meaning of 46 U.S.C. § 55103 and 19 CFR §
4.50(b). Accordingly, the coastwise transportation of such individuals
is not in violation of 46 U.S.C. § 55103.

HOLDING

The subject individuals described above are not "passengers" within the
meaning of 46 U.S.C. § 55103 and 19 CFR § 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