HQ 110364: Applicability of the coastwise laws to the use of anon-coastwise-qualified oceanographic research vessel in theexploration for oil and gas by means of Seismograph methods inthe Cooke Inlet Area of Alaska.

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 110364

                       September 29, 1989


VES-3-14 CO:R:P:C  110364 BEW

CATEGORY:  Carriers

Mr. Cary L. Epley
Digicon Geophysical Corporation
Land Field Service
12333-D Sowden Road
Houston, Texas 77080

RE:  Applicability of the coastwise laws to the use of a
non-coastwise-qualified oceanographic research vessel in the
exploration for oil and gas by means of Seismograph methods in
the Cooke Inlet Area of Alaska.

Dear Mr. Epley:

     This is in response to your letter of July 10, 1989,
requesting a ruling on the applicability of the coastwise laws to
the use of a (9) smaller barge pods, interlocked together to
form one barge.

FACTS:

     You state the barge will be powered by two outdrives, and
will have several pieces of equipment mounted on the barge
itself.  You state that the vessel measurements of the barge are
30' wide, 60' long, 5'  high.  You state that the barge will be
used for research purposes.  Your letter asks for a confirmation
of your understanding of the coastwise laws which were discussed
telephonically with Paul Hegland of my staff on July 5, 1989.
You also ask whether the barge has to be admeasured or inspected
since it is going to be used for research purposes.

ISSUE:

     May a non-coastwise-qualified barge vessel be used as a
seismograph vessel for research purposes in the Cooke Inlet Area
of Alaska without violating the coastwise laws?

                             - 2 -


LAW AND ANALYSIS:

     The coastwise law pertaining to the transportation of
passengers, the Act of June 19, 1886, as amended (24 Stat. 81;
46 U.S.C. App. 289), 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.

     The coastwise law pertaining to the transportation of
merchandise, section 27 of the Act of June 5, 1920, as amended
(41 Stat. 999; 46 U.S.C. App. 883, often called the Jones Act),
provides that:

          No merchandise shall be transported by water, or by
          land and water, on penalty of forfeiture of the
          merchandise (or a monetary amount up to the value
          thereof as determined by the Secretary of the
          Treasury, or the actual cost of the transportation,
          whichever is greater, to be recovered from any
          consignor, seller, owner, importer, consignee, agent,
          or other person or persons so trans-porting or causing
          said merchandise to be transported), between points in
          the United States ... embraced within the coastwise
          laws, either directly or via a foreign port, or for any
          part of the transportation, in any other vessel 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 ....

     For purposes of the coastwise laws, a point in United States
territorial waters is considered a point embraced within 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.

     For purposes of section 289, "passenger" is defined in
section 4.50(b), Customs Regulations (19 CFR 4.50(b)), as "...
any person carried on a vessel who is not connected with the
operation of such vessel, her navigation, ownership, or
business."  "Merchandise," as used in section 883, includes any
article, including valueless merchandise pursuant to the recent
amendment of section 883 by the Act of June 7, 1988 (Public Law
100-329; 102 Stat. 588).

                              - 3 -


     It its interpretation of the coastwise laws with regard to
the issue under consideration, Customs has long held that the
use of a vessel solely to engage in oceanographic research is not
a use in the coastwise trade.  We have held that the use of non-
coastwise-qualified vessels to engage in oceanographic research,
including the transportation of persons participating in the
research from, to, and between research sites in United States
territorial waters, whether or not the persons participating in
the research temporarily leave the vessels at the research sites,
would not violate the coastwise laws.  We have held that the
collection of marine specimens at the research sites and the
transportation of those specimens from the research sites to
points in the United States would not violate the coastwise laws.
Of course, if such a vessel transported between coastwise points,
or provided part of the transportation between coastwise points
of, any persons other than the vessel crew and scientists and
students engaged in the oceanographic research or any merchandise
other than the usual supplies and equipment necessary for that
research and/or research specimens or samples, the coastwise laws
would be violated.

     We believe that this interpretation of the coastwise laws
is buttressed by the Act of July 30, 1965 (Public Law 89-99; 79
Stat. 424; 46 U.S.C. App. 441-444, often called the Oceanic
Research Vessel Act), as amended, section 3 (46 U.S.C. App. 443)
of which provides that "An oceanic research vessel shall not be
deemed to be engaged in trade or commerce."  This Act, in defin-
ing the term "oceanographic research vessel," defines oceano-
graphic research as "... including, but not limited to, such
studies pertaining to the sea as seismic, gravity meter and
magnetic exploration and other marine geophysical or geological
surveys, atmospheric research, and biological research" (46
U.S.C. App. 441(1)).

     From the facts given, we cannot determine whether the barge
pods were built foreign or built in the United States.  Under the
above provisions a foreign-built vessel is prohibited from
engaging in the coastwise trade.  However, we conclude that the
use of the vessel as described, to collect and do laboratory work
on data and samples for oil and gas exploration from the Cooke
Inlet Area on the Alaskan coast, is considered oceanographic
research.  The transportation of the scientists who collect and
work on the data and samples to, from, and between collection
sites in United States territorial waters in the vessel under
consideration would not violate the coastwise laws.  Neither
would the transportation of the samples collected from the points
where they are brought onto the vessel to the shore violate the
coastwise laws.  A non-coastwise-qualified vessel would, of
                              - 4 -


course, be prohibited from transporting between coastwise points
passengers (i.e., not including the scientists or vessel crew)
and/or merchandise other than the samples or the usual supplies
and equipment necessary for the research.

     Matters relating to admeasurement, inspection and the
determination of a build for a vessel for documentation purposes
are administered by the United States Coast Guard.  Your
questions relating to these issues should be directed to the
following office:

               Chief, Documentation Branch
               United States Coast Guard (G-MVI-6/13)
               2100 Second Street, SW
               Washington, D. C. 20593


HOLDING:

     A non-coastwise-qualified barge vessel may be used as a
seismograph vessel for research purposes in the Cooke Inlet Area
of Alaska without violating the coastwise laws.

                                      Sincerely,




                                       B. James Fritz
                                       Chief
                                       Carrier Rulings Branch