HQ 111342: 46 U.S.C. App. 883; Merchandise; Private

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 111342

December 5, 1990

VES-3-07-CO:R:P:C  111342 RAH

CATEGORY: Carriers

Walter Krauklis
Schenkers International Forwarders Inc.
2700 Greens Road, Building M
P.O. Box 60244 AMF
Houston, Texas  77205

RE:  46 U.S.C. App.  883; Merchandise; Private

Dear Mr. Krauklis:

     This is in response to your letter of September 3, 1990,
requesting an interpretation of 46 U.S.C. App.  883.

     As you did not specifically request a ruling, this letter
will provide general information only.  In order for us to issue
a ruling under the Customs Regulations (19 C.F.R.  177.2) a
request for a ruling must contain a complete statement of all
relevant facts relating to the transaction.  Such facts should
include information relating to place of build, nationality, and
registration of the vessel and, if to be used in waters under the
jurisdiction of the United States, the exact place or places of
intended use, if known.  Nevertheless, we will provide you with
general information.

     In your letter you ask us to determine if the Jones Act will
allow the private use of 2 barges constructed in the People's
Republic of China in the U.S. coastal waters, namely Galveston
Bay, Texas, for the purpose of moving truck or rail cars from/to
a manufacturing operation.

     The coastwise laws generally prohibit the transportation of
merchandise between points in the United States embraced within
the coastwise laws, either directly or via a foreign port, or for
any part of such transportation, 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, or vessels to which the privilege of engaging in the
coastwise trade is extended. 46 U.S.C. App.  883 and 19 C.F.R.
4.80.

     The term "merchandise," as used in 46 U.S.C. 883, is not
defined for purposes of that provision.  We have used the
definition of "merchandise" found in section 401(c), Tariff Act
of 1930, as amended (19 U.S.C. 1401(c)) in our application of


section 883.  "Merchandise" is defined in section 1401(c) as
meaning "goods, wares, and chattels of every description, and
[including] merchandise the importation of which is
prohibited...."  More specifically, in Headquarters Decision
105061, dated May 7, 1987, we held that construction equipment
and materials constituted merchandise and could not be
transported in a foreign-built, foreign-flag barge under section
883.

     Finally, we have held that it is immaterial that cargo
transported may be owned by the vessel owner for purposes of
section 883.  Headquarters Decision 109649 (08-1-88).
Furthermore, even though a company will engage a vessel in
private use only under section 883, the transportation of
merchandise thereon would nevertheless constitute coastwise
trade, the transportation of which is prohibited in any vessel
other than one which is coastwise-qualified.

     If we can be of further assistance, or if you would like a
formal ruling as discussed above, please do not hesitate to
contact our office.

                              Sincerely,



                              B. James Fritz
                              Chief
                              Carrier Rulings Branch