HQ 112748: Coastwise Trade; Cruise Itinerary; CROWN DYNASTY

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 112748

                            June 9, 1993

VES-3-06-CO:R:IT:C 112748 DEC

CATEGORY:  Carriers

Mr. Alan Freedman
Commodore Cruise Line
800 Douglas Road - Suite 700
Coral Gables, Florida  33134

RE:  Coastwise Trade; Cruise Itinerary; CROWN DYNASTY

Dear Mr. Freedman:

     This ruling is in response to your inquiry of May 25, 1993, in
which you seek clarification of whether the anticipated itinerary of
your non-coastwise qualified vessel (CROWN DYNASTY) constitutes a
violation of Customs regulations.


FACTS:

     You state that the CROWN DYNASTY will embark passengers in both
New York and Port Everglades with no debarkation and will return,
after several stops at foreign ports, to Port Everglades for full
debarkation.  The proposed itinerary which is the subject of this
ruling is set out below.


     Sat   Oct. 16 '93          New York             0800-1700
     Sun        17              Sea
     Mon        18              Sea
     Tues       19              Pt. Everglades       0800-1800
     Wed        20              Sea
     Thurs      21              Sea
     Fri        22              St. Thomas           0800-1600
     Fri        22              San Juan             2100-0000
     Sat        23              San Juan             0001-1800
     Sun        24              St. Maarten          0800-1700
     Mon        25              Sea
     Tue        26              Aruba                0900-1700
     Wed        27              Sea
     Thu        28              Pt. Antonio          0800-1600
     Fri        29              Sea
     Sat        30              Pt. Everglades       0800-1700




                                 -2-


ISSUE:

     Whether a non-coastwise qualified vessel may complete the
itinerary described above without violating 19 U.S.C. app.  289 and
19 C.F.R.  4.80a.


LAW AND ANALYSIS:

     Generally, the coastwise laws prohibit the transportation of
merchandise or passengers between points in the United States
embraced within the coastwise laws in any vessel other than a vessel
built in, documented under the laws of, and owned by citizens of the
United States.  The coastwise law applicable to the carriage of
passengers is found in Title 46, United States Code, Appendix,
section 289 (46 U.S.C. app.  289) and 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.

46 U.S.C. app.  289 (1992).

     Title 19, Code of Federal Regulations, Section 4.80a(b)
provides that:

           The applicability of the coastwise law (46 U.S.C.
           289) to a vessel not qualified to engage in the
           coastwise trade (i.e., either a foreign-flag vessel
           or a U.S.-flag vessel that is foreign-built or at
           one time has been under foreign-flag) which embarks
           a passenger at a coastwise port is as follows:

           . . . 

                (3)  If the passenger is on a voyage to one or
                     more coastwise ports and a distant foreign
                     port or ports (whether or not the voyage
                     includes a nearby foreign port or ports) and
                     the passenger disembarks at a coastwise port,
                     there is no violation of the coastwise law
                     provided the passenger has proceeded with
                     the vessel to a distant foreign port.

19 C.F.R.  4.80a(b)(1992).

     A coastwise port is a "port in the U.S., its territories, or
possessions embraced within the coastwise laws."  19 C.F.R.
 4.80a(a)(1)(1992).  A nearby foreign port is defined as "any port
in North America, Central America, the Bermuda Islands, or the West 

                                 -3-


Indies (including the Bahama Islands, but not including the Leeward
Islands of the Netherlands Antilles, i.e. Aruba, Bonaire, and
Curacao)."  19 C.F.R.  4.80a(a)(2)(1992).  A distant port is "any
foreign port that is not a nearby port."  19 C.F.R.  4.80a(a)(3)
(1992). 

     The legality of your proposed itinerary must be analyzed
through an application of the preceding rules and definitions. 
First, you indicated that the CROWN DYNASTY will begin its voyage in
New York, a coastwise port, and pick up passengers at Port
Everglades, also a coastwise port, prior to sailing to various
foreign ports.  After a two-week cruise, passengers will disembark
at Port Everglades.

     On the surface, it appears that there is a coastwise violation
because passengers are being transported from one coastwise point to
another.  However, no violation of the passenger coastwise law will
occur because the regulations explicitly provide that no passenger
coastwise violation occurs if the passengers accompany the vessel to
a distant foreign port.  Since the CROWN DYNASTY's itinerary
includes a stop at a distant foreign port (i.e. Aruba - Aruba is
specifically excluded from the group of nearby foreign ports (19
C.F.R.  4.80a(a)(2)(1992)) making it a distant foreign port), the
proposed itinerary presents no conflict with the passenger coastwise
law.


HOLDING:

     The proposed itinerary of the CROWN DYNASTY as outlined above
is not in violation of the passenger coastwise law.  Although the
CROWN DYNASTY's proposed itinerary includes the transport of
passengers between coastwise points, a stop at a distant foreign
port (Aruba) makes this contemplated voyage compliant with Customs
regulation 19 C.F.R.  4.80a(b)(3)(1992).

                                     Sincerely,




                                     Acting Chief
                                     Carrier Rulings Branch