HQ 112723: Sailing Instructions; 46 U.S.C. app. 289; 46 U.S.C. app. 883

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 112723

                          May 26, 1993

VES-3-19-CO:R:IT:C 112723 DEC

CATEGORY: Carriers

Mr. Ted Simpson
Spinakker Sports
Box 142
Mikana, Wisconsin  54857

RE:  Sailing Instructions; 46 U.S.C. app.  289; 46 U.S.C. app.
      883

Dear Mr. Simpson:

     This ruling is in response to your correspondence with the
Carrier Rulings Branch in which you inquired whether your sailing
vessel, the SKAGERRAK, may be used for training purposes.

FACTS:

     The SKAGERRAK is a foreign-built, United States-registered
vessel.  In your letter, you indicated that you intend to offer
sailing lessons in the Apostle Islands using the SKAGERRAK and
question whether your vessel may legally engage in such an
activity.  


ISSUE:

     Whether a foreign-built, United States-registered vessel may
be used to offer sailing instruction.


LAW AND ANALYSIS:

    The coastwise laws generally prohibit the transportation of
passengers or merchandise between points in the United States
embraced within the coastwise laws in any vessel other than a
United States built, owned, and documented vessel.  46 U.S.C.
app.  289 (Supp. 1992) & 46 U.S.C. app.  883 (Supp. 1992). 
Points in the United States embraced within the coastwise laws
include the United States territorial waters.  The territorial
waters of the United States consist of the territorial sea,
defined as the belt, three nautical miles wide, seaward of the
territorial sea baseline, and of the internal waters of the
United States, landward of the territorial sea baseline, in cases
where the baseline and the coastline differ.  Headquarters Ruling
111275 (Nov. 13, 1990).


      The Customs Regulations define "passenger" for purposes of
section 289 as "any person carried on a vessel who is not
connected with the operation of such vessel, her navigation,
ownership, or business."  19 C.F.R.  4.50(b)(1992).  The Customs
Service has held that a person being trained or receiving
instruction in the handling or navigation of a vessel, and whose
presence on board the vessel is required in order to receive such
training or instruction, is not a "passenger" within the
coastwise laws.  Accordingly, if the vessel is used only for such
training, then it would not be required to have a license to
engage in the coastwise trade.  See Headquarters Ruling 109850
(Dec. 27, 1988) and Headquarters Ruling 109287 (Feb. 24, 1988).

     Therefore, the sole use of a foreign-built sailing vessel in
connection with a bona fide instructional course in sailing and
navigation with class or other instruction, as opposed to an
outing, does not constitute coastwise trade within the meaning of
46 U.S.C. app.  289.  From your description, everyone transported
by the vessel will either be part of the regular crew or be part
of the training crew.  Their transportation is, therefore,
permitted.  We stress, however, that all persons being carried in
the vessel must be involved with the operation, navigation, or
business of the vessel.  Persons who are carried on board a
vessel for recreational purposes, whether or not they pay a fee,
would be considered "passengers," and their carriage between
places in the United States or entirely within United States
waters would be in violation of the coastwise laws.

HOLDING:

     The sole use of a foreign-built, United States-registered
sailing vessel in connection with a bona fide instructional
course in sailing and navigation with appropriate instruction and
training is not coastwise trade in violation of 46 U.S.C. app.
 289.

     This ruling addresses only those federal requirements that
are administered by the United States Customs Service.  While we
are unaware of any other federal or state agency requirements
that might pertain to the undertaking you describe, it is
possible that such requirements exist.

                              Sincerely,




                              Acting Chief