HQ 112404: Foreign-flag Yacht; Cruising License; 46 U.S.C. App. 104

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 112404

                         August 14, 1992

VES-4-01-CO:R:IT:C 112404 GEV

CATEGORY:  Carriers

Sam Israeloff
President
Pearl Yacht Line
800 East Broward Boulevard, Suite 510
Ft. Lauderdale, Florida 33301

RE:  Foreign-flag Yacht; Cruising License; 46 U.S.C. App. 104

Dear Mr. Israeloff:

     This is in response to your letter of July 27, 1992,
requesting a ruling regarding the issuance of cruising licenses
to two foreign-flag yachts while they are in the United States. 
Our ruling on this matter is set forth below.

FACTS:

     Pearl Yacht Line is the managing agent for a fleet of
French-flag yachts which operate in St. Martin, French West
Indies.  The yachts operate as mini-cruise vessels and take only
eight, ten or twelve passengers on weekly cruises in the
Caribbean.  The yachts are registered as commercial vessels.

     The managing agent will be taking two of the aforementioned
yachts (the PEARL SERENADE and PEARL CHORUS) to the United States
in September for a two month East Coast tour to allow travel
agents to inspect the yachts, and to show the yachts at boat
shows in Newport, R.I., Stamford, Conn., Annapolis, Md., and Ft.
Lauderdale, Fla.

     It is requested that these two vessels be allowed to obtain
cruising licenses from Customs.  This request is based on the
following:  (1) the vessels are designed and built as yachts; (2) 
the vessels will not be engaged in trade while in U.S. waters;
(3) the vessels will not be carrying cargo; (4) the vessels will
be entering U.S. waters to be shown only as examples of a cruise
product that can be purchased elsewhere; and (5) once the yachts
have entered U.S. waters it is contended that continuing
inspections in each U.S. port will place an unnecessary cost upon
both Customs and the yacht owner.

                              - 2 -

ISSUE:

     Whether a foreign-flag yacht, registered as a commercial
vessel and operated for passenger cruises, may be issued a
cruising license pursuant to 46 U.S.C. App. 104 when brought to
the United States for the purpose of allowing travel agents to
inspect it, and to be shown at various boat shows in the United
States.

LAW AND ANALYSIS:

     Section 4.94, Customs Regulations (19 CFR 4.94) concerns the
issuance of cruising licenses which exempt foreign yachts from
formal entry and clearance procedures (e.g., filing manifests,
obtaining permits to proceed and exemptions from the payment of
tonnage tax and entry and clearance fees) at United States ports. 
Section 4.94 was promulgated pursuant to title 46, United States
Code Appendix, section 104 (46 U.S.C. App. 104) which authorizes
the issuance of cruising licenses to pleasure vessels of
countries which extend reciprocal privileges to United States
vessels.  France is on the list of countries appearing in section
4.94(b) whose yachts may be issued cruising licenses.  

     It should be noted, however, that 46 U.S.C. App. 104
provides that on the basis of reciprocity, foreign yachts may be
granted cruising licenses provided they are "...used and employed
exclusively as pleasure vessels..."  Although the two French-
flag vessels under consideration may not be used in trade during
the course of their East Coast tour, neither would they be used
and employed exclusively as pleasure vessels.  Accordingly,
cruising licenses may not be issued to these two vessels.

HOLDING:

     A foreign-flag yacht, registered as a commercial vessel and
operated for passenger cruises, may not be issued a cruising
license pursuant to 46 U.S.C. App. 104 when brought to the United
States for the purpose of allowing travel agents to inspect it,
and to be shown at various boat shows in the United States.

                              Sincerely,




                              B. James Fritz
                              Chief