**HQ H023312**

**February 15, 2008**

**VES-3-02-OT:RR:BSTC:CCI** H023312 JLB

**CATEGORY**: Carriers

Mr. Brian Trevino

Norton Lilly International

10050 Northwest Freeway

Suite 275

Houston, Texas 77092

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

Dear Mr. Trevino:

This letter is in response to your correspondence dated February 14,
2008, in which you request a ruling on whether the coastwise
transportation of the individuals mentioned therein aboard the M/V
SEALAND PRIDE 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 M/V SEALAND PRIDE ("the
vessel"). The seven individuals will embark on February 16, 2008 at
Houston, Texas and will disembark at the port of Norfolk, Virginia on or
about February 21, 2008. One of the individuals will travel aboard the
vessel in order to conduct an audit of the vessel's security plan and
its implementation as well as to inspect the vessel's condition. This
individual will also perform a Health, Safety, Quality and Environment
("HSQE") audit. The six remaining individuals will travel aboard the
vessel, as technicians, to repair and weld the number 3 port HFO Tank
vent, inside the HFO tank.

**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]{.underline}
[also]{.underline} 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]{.underline}
[also]{.underline} 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]{.underline} [Customs Bulletin]{.underline} 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]{.underline}
[also]{.underline} Headquarters Decision 116721, dated September 25,
2006. In the present case, one of the individuals would be traveling
aboard the non-coastwise-qualified vessel to conduct an internal
security audit as well as a HSQE audit while the six remaining
individuals will repair and weld a HFO Tank vent. Under the facts
presented, the individuals 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