HQ 111329: Entry; Vessel; Oil Rig; 19 C.F.R. 4.3; OCS.

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 111329

                        December 5, 1990

VES-3-15/VES-5-05       111329 RAH

CATEGORY: Carriers


Deputy Assistant Regional Commissioner
Commercial Operations Division
New Orleans, Louisiana 70130

RE:  Entry; Vessel; Oil Rig; 19 C.F.R.  4.3; OCS.

Dear Sir:

     This is in response to your memorandum of September 26,
1990, regarding the requirement of oil exploration or production
vessels to make entry as described in 19 C.F.R.  4.3.

     You ask whether oil exploration or production rigs which
are classified as vessels are required to make entry when first
"attached" to the outer Continental Shelf, outside the
territorial waters of the United States.

     Section 4(a) of the Outer Continental Shelf Lands Act of
1953, as amended (67 Stat. 462; 43 U.S.C. 1333(a)) (OCSLA),
provides, in pertinent part, that the laws of the United States
are extended to:

          ...the subsoil and seabed of the outer
          Continental Shelf and to all artificial
          islands, and all installations and other
          devices permanently or temporarily attached
          to the seabed, which may be erected thereon
          for the purpose of exploring for, developing,
          or producing resources therefrom ... to the
          same extent as if the outer Continental
          Shelf were an area of exclusive Federal
          jurisdiction located within a State.

     Under this provision, Customs has ruled that the coastwise
laws and other Customs and navigation laws are extended to mobile
oil drilling rigs during the period they are secured to or
submerged onto the seabed of the United States outer Continental
Shelf.  The same principles have been applied to drilling
platforms, artificial islands, and similar structures attached to
the seabed of the outer Continental Shelf for the purpose of
resource exploration operations, including warehouse vessels
anchored over the OCS when used to supply drilling rigs on the
outer Continental Shelf.  Customs Ruling Letter 110228 (7-14-89).
                              - 2 -

     The requirement for formal entry of vessels is set out in 19
U.S.C.  1434, 1435.  Section 1434 provides that the master of a
vessel of the United States must make entry within 48 hours after
arrival within the United Stated from a foreign port or place.
Section 1435 provides that a foreign vessel must make entry
within 48 hours after arrival within the limits of any Customs
collection district.  See also, 19 CFR  4.3.

     It has long been Customs position that drilling vessels are
not subject to the vessel entrance and clearance requirements at
the time they initially "attach" to the outer Continental Shelf.
Customs Letter 107852 PH (10-22-85).  In Customs Memorandum
100136 ML (8-16-76) we held that there is no authority to require
the entry from or clearance to, foreign ports of offshore
drilling rigs which come to rest at a geographical point on the
high seas [outside the territorial waters of the United States]
over the outer Continental Shelf for the purpose of exploring for
or exploiting its natural resources.  However, once such offshore
drilling rig is secured for drilling operations, or otherwise
engaged in oil drilling activities on the outer Continental
Shelf, the Customs and navigation laws, including the entry and
clearance requirements are fully applicable for the duration of
such operations.  Customs Memorandum 100136 ML (8-16-76).

     In other words, an offshore drilling rig which arrives at,
and subsequently departs from, a point on the high seas over the
outer Continental Shelf is not deemed to have arrived at or
departed from a point within United States jurisdiction to which
the entry and clearance requirements would apply.  On the other
hand, once the drilling rig becomes attached to the outer
Continental Shelf as described above, it is considered a "fixed
structure" and, as such, the movement of vessels to and from such
point involves the application of the entry and clearance
requirements.  Customs Memorandum 100136 ML (8-16-76).  Although
you specifically asked about entry requirements outside the
United States territorial waters, please be aware that if the
drilling activities are to be conducted in whole or in part
within territorial waters, it may be necessary to enter and clear
the rigs (which includes the permit to proceed procedure) at the
drilling sites.  Customs Letter 101799 ML (11-04-75).

     Secondly, you ask if there are any reporting requirements
for arrival or movement outside the three mile limit, provided
each such stop includes "attachment" to the United States outer
Continental Shelf.
                              - 3 -

     The movement of a drilling rig to a point (including a
drilling location on the United States outer Continental Shelf
beyond United States territorial water) within United States
jurisdiction from a point outside United States jurisdiction
subjects the rig to varying requirements of the navigation laws
under certain circumstances.  If such movement originates from a
foreign port or place and the rig arrives at a point within
United states territorial waters, the master would be required to
report arrival at the nearest customhouse immediately and make
entry within 48 hours regardless of the rig's documentation.  If
such movement originates from a point on the high seas and the
rig arrives at a point within the United States territorial
waters, the master of a rig would be required to make entry at
the nearest customhouse.  Finally, any such movement, regardless
of whether it originated at a foreign port or on the high seas
and regardless of the rig's documentation, to a point beyond
United States territorial waters would not require report of
arrival or entry provided the "point" was merely geographical
and not a fixed structure erected on the Shelf as described
above.  Customs Letter 101799 ML (11-4-75).

     If you have any further questions regarding this matter,
please do not hesitate to contact our office.

                                   Sincerely,



                                   B. James Fritz
                                   Chief
                                   Carrier Rulings Branch