HQ 109759: Transportation of passengers between United States ports or places and the high seas on a foreign-built vessel

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 109759

                                   October 25, 1988

            VES 3-02 CO:R:P:C 109759 BEW

            CATEGORY:  CARRIERS

            Mr. Lonnie P. Ryan
            Post Office Box 60023
            San Diego, California 92106

            RE:  Transportation of passengers between United States ports
            or places and the high seas on a foreign-built vessel

            Dear Mr. Ryan:

                 This is in reference to your letter September 12, 1988,
            concerning the transportation of passengers for hire between
            ports or places in the United States and the high seas on your
            foreign-built vessel TRINET.

            FACTS:

                 You state that you intend to use the TRINET to take
            "voyages to nowhere".  You state that the vessel was built in
            the Orient to United States safety regulations.  You state that
            you will use the vessel for voyages beyond the 3 mile limit and
            will not visit other United States ports or points other than
            port of original embarkation.

            ISSUE:

                 Whether the transportation of passengers on a foreign-
            built vessel for hire between a port or place in the United
            States and the high seas, and return to the point of original
            embarkation is a violation of the coastwise laws.

            LAW ANALYSIS:

                 Generally, the coastwise laws (e.g., 46 U.S.C. App. 289
            and 883, and 46 U.S.C. 12106 and 12110) prohibit the



















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            transportation of merchandise or passengers between points in
            the United States embraced within the coastwise laws in any
            vessel other than a vessel built in and documented under the
            laws of the United States, and owned by persons who are
            citizens of the United States.

                 Under the provisions of 46 U.S.C. App. 289, no foreign
            vessel shall transport passengers between ports or places in
            the United States, either directly or by way of a foreign port.
            The penalty for violating this section of the law is $200 for
            each passenger so transported and landed.

                 In interpreting the coastwise laws as applied to the
            transportation of passengers, we have ruled that the carriage
            of passengers entirely within territorial waters, even though
            they disembark at their point of embarkation and the vessel
            touches no other point, is considered coastwise trade subject
            to the coastwise laws.  The transportation of passengers to the
            high seas or foreign waters and back to the point of
            embarkation, often called a "voyage to nowhere," is not
            considered coastwise trade, assuming the passengers do not go
            ashore, even temporarily, at another coastwise point.  We have
            ruled that the carriage of fishing parties for hire, even if
            the vessel proceeds beyond territorial waters and returns to
            the point of the passengers' original embarkation, is
            considered coastwise trade subject to the coastwise laws.  The
            territorial waters of the United States consist of the
            territorial sea, defined as the belt, 3 nautical miles wide,
            adjacent to the coast of the United States and seaward of the
            territorial sea baseline.

                 The vessel under consideration, as a foreign-built vessel,
            would be precluded from engaging in the coastwise trade.  The
            vessel could be used to transport passengers from a point in
            the United States to the high seas beyond territorial waters
            and back to the same point, assuming that the vessel touched at
            no other coastwise point during the transportation and was not
            engaged in charter party fishing.  However, the vessel would be
            prohibited from carrying passengers on such a voyage if the
            passengers disembarked the vessel at a coastwise port subject
            to the coastwise laws of the United States.   This is so
            because on such a voyage the passengers would be transported
            between ports or places in the United States (see 46 U.S.C.
            289).  

















                                         - 3 -


            HOLDING:

                 The transportation by a non-coastwise-qualified vessel,
            such as your foreign-built vessel, of passengers to the high
            seas or foreign waters and back to the point of embarkation,
            often called a "voyage to nowhere" is not considered coastwise
            trade.

                                              Sincerely,




                                              B. James Fritz
                                              Chief
                                              Carrier Rulings Branch






























            CO:R:P:C:BEWhiting:10/19/88