HQ 112843: Coastwise Trade; 46 U.S.C. 883; Transportation; Barge

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 112843

                         September 23, 1993

VES-3-CO:R:IT:C  112843 DEC

CATEGORY:  Carriers

Mr. Peter A. Greene
Thompson, Hine and Flory
1920 N Street, N.W.
Washington, D.C.  20036-1601

RE:  Coastwise Trade; 46 U.S.C.  883; Transportation; Barge

Dear Mr. Greene:

     This ruling is in response to your August 11, 1993, inquiry
concerning the legality of using a barge to transport cement from a
vessel to rail cars.


FACTS:

     The Canadian-built non-self-propelled  barge METIS is owned by
Essroc Canada, Incorporated ("Essroc").  Essroc plans to moor the
barge at a cement dock in Green Bay, Wisconsin.  The barge, which
will remain stationary, will be used to transfer bulk cement from a
vessel to rail cars.  Since the vessel's capacity exceeds the
capacity of the dock, the cement will be stored on the barge until
dock capacity becomes available.  Essroc has assured Customs that
all the cement loaded into the barge will be unloaded without the
barge having changed its position.


ISSUE:

     Whether a non-coastwise qualified barge may be used to unload
cargo and temporarily store cargo without changing its position
within United States territorial waters.


LAW AND ANALYSIS:

     Title 46, United States Code, section 883 prohibits 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 the transportation, in any other 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.

                                 -2-


     The Customs Service has long held that the use of a non-
coastwise qualified vessel to load and unload cargo is not coastwise
trade and does not violate 46 U.S.C.  883, provided that any
movement of merchandise is effected exclusively by the operation of
the crane and not by movement of the vessel, except for movement
which is incidental to a lifting operation while it is taking place. 
However, movement of merchandise while it is suspended from the
crane, even between two points within a harbor, which is effected by
a movement of the vessel which is neither necessary nor incidental
to a lifting operation by the crane would constitute a coastwise
transportation of merchandise within the purview of 46 U.S.C.  883. 
Headquarters Rulings 106351 (Nov. 1, 1983) and 108213 (Mar. 6,
1986).


HOLDING:

     The use of a non-coastwise qualified barge to unload cargo and
to temporarily store cargo does not violate 46 U.S.C.  883 so long
as no movement of the merchandise is effected through a movement of
the barge aside from necessary or incidental movement arising from
the lifting operation.

                                     Sincerely,




                                     Arthur P. Schifflin
                                     Chief
                                     Carrier Rulings Branch