HQ 113361: Coastwise transportation; 46 U.S.C. App. 289; 19 CFR 4.50(b); Passengers; Research; Students

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                         
                              HQ 113361

                                 March 8, 1995

Ronald W. Ward
Director, Water Resources Institute
Grand Valley State University
One Campus Drive
Allendale, Michigan 49401-9403

RE:  Coastwise transportation;  46 U.S.C. App. 289;  19 CFR 4.50(b);  Passengers;
     Research; Students

Dear Mr. Ward:

     This is in response to your letter dated March 2, 1995.

FACTS:

     You request us to "rule on the question of having our second research vessel
constructed in Canada."

     You state as follows:

     Grand Valley State University is a public university with funding from the state of
     Michigan.  Since 1967, we have operated a research vessel on Lake Michigan      and tributary streams.  Our current research vessel, the D.J. ANGUS, is 45 feet      in length and operates out of Grand Haven, Michigan.  The vessel serves the     University as a:

     1) floating laboratory for students in certain university course offerings (primarily         in biology, geology, physics, and chemistry);
     2) research platform for faculty, staff, and student researchers; and
     3) as a classroom/laboratory in an aquatic sciences outreach education              program.

     Costs of operation for items 1) and 2) above are paid from grants and University     funds.

     Activity 3) above, our outreach education program, offers hands-on,        investigative science education to K-12 students, youth groups, civic groups and
                              - 2 -

     others with a n interest in our aqu atic environment.  Cruises to study the biology,   geo logy, physics, and chemi stry of our waters are limited to Lake Michigan       (within 5 miles of a safe  port) and tributary rivers and lakes.  This program is  funded by an endowment, plus occasional grants, gifts and University funds.  User groups are not charged any fee for their demonstration cruise.  They are told that the program depends on endowment earnings, grants and gifts and are invited to make a voluntary gift to the endowment.  Users are asked to pay a $55.00 fee which partially covers the costs of curriculum materials for use before, after and during the cruise, expendable chemicals and other supplies used for tests conducted during the cruise.

ISSUE:

     Whether the proposed activities are prohibited by 46 U.S.C. App. 289.

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.

     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.

     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. 

     In numerous previous rulings, Customs has held that the use of a vessel solely
to engage in various research activities does not involve the transportation of 

                              - 3 -

passengers and is not a use in coastwise trade.  We find the facts of this case to be
substantially similar to the facts in certain of those previous rulings.

     Accordingly, we find that the faculty, staff, and students/student researchers
described supra are not passengers within the meaning of 46 U.S.C. App. 289 and 19
CFR 4.50(b).  They may be transported between coastwise points in a vessel which is
not coastwise-qualified, e.g., a vessel which is built in Canada.

HOLDING:

     As detailed supra, the proposed activities are not violative of 46 U.S.C. App.
289.  The faculty, staff, and students/student researchers described supra are not
passengers within the meaning of 46 U.S.C. App. 289 and 19 CFR 4.50(b).  They may
be transported between coastwise points in a vessel which is not coastwise-qualified,
e.g., a vessel which is built in Canada.



                         Sincerely,



                         Arthur P. Schifflin
                         Chief
                         Carrier Rulings Branch