HQ 113164: 46 U.S.C. App. 883; 46 U.S.C. 316(a); Floating Garages; Coastwise Transportation; Towing

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 113164

                            July 20, 1994

VES-3/10-03-CO:R:IT:C  113164 GOB

CATEGORY:  Carriers

Mr. Roger Drew
Director
Scarfa Holdings Limited
Suite 1310
400 East Harrison Street
Tampa, Florida 33602

RE:  46 U.S.C. App. 883; 46 U.S.C. 316(a); Floating Garages;
     Coastwise Transportation; Towing

Dear Mr. Drew:

     This is in response to your letter dated July 7, 1994 to the
Chief Counsel of the Customs Service.  The Carrier Rulings Branch
of the Office of Regulations and Rulings is the office within the
Customs Service which issues rulings relating to coastwise
transportation.

FACTS:

     You describe the facts as follows:

     We are considering importing floating garages, capable of
     parking 1,000 cars, moored on site with jack-up legs for
     permanent stability and safety...
     Units will be sited at waterline areas adjacent to casino
     sites along the Mississippi River and, may, in time, be     
sited at casino venues in the New Orleans area.
     ...
     ...these units are permanent and stationary once sited...

ISSUE:

     Whether the proposed activity is in violation of the coastwise
laws - 46 U.S.C. App. 289, 883 and 316(a).

LAW AND ANALYSIS:

     Generally, the coastwise laws prohibit the transportation of
passengers or merchandise between points in the United States
embraced within the coastwise laws in any vessel other than a 


                              - 2 -

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 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. 883, the coastwise merchandise statute often
called the "Jones Act", provides in part that no merchandise shall
be transported 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 vessel other than a vessel
built in, documented under the laws of, and owned by citizens of
the United States.

     The coastwise laws generally apply to points in the
territorial sea, which is defined as the belt, three nautical miles
wide, seaward of the territorial sea baseline, and to points
located in internal waters, landward of the territorial sea
baseline.     

     46 U.S.C. App. 316(a), the coastwise towing statute, states
in part:

     It shall be unlawful for any vessel not wholly owned by a
     person who is a citizen of the United States within the
     meaning of the laws respecting the documentation of vessels
     and not having in force a certificate of documentation      
issued under section 12106 or 12107 of Title 46 to tow any  vessel
other than a vessel in distress, from any port or      place in the
United States, its Territories or possessions,    embraced within
the coastwise laws of the United States, to  any other port or
place within the same, either directly or    by way of a foreign
port or place, or to do any part of such     towing, or to tow any
such vessel, from point to point   within the harbors of such
places.

     Your letter states that the floating garages are "permanent
and stationary."  Based on the statement that the floating garages
are stationary, we conclude that they will not be transporting
passengers or merchandise from one coastwise point to another. 
Accordingly, the use of stationary floating garages is not
violative of 46 U.S.C. App. 289 or 883.  However, should the
floating garages move, other than an incidental shifting in the
water, and transport passengers or merchandise from one coastwise
point to another coastwise point, such movement would be violative
of 46 U.S.C. App. 289 and/or 883 unless it is accomplished by a
vessel that is coastwise-qualified.

                              - 3 -

     Your letter does not state the manner in which the floating
garages will be assembled or set up.  Pursuant to 46 U.S.C. App.
316(a), if the floating garages are towed from one coastwise point
to another, such towing must be performed by a coastwise-qualified
vessel.

HOLDINGS:

     1.  The use of stationary floating garages, which do not
transport passengers or merchandise from one coastwise point to
another coastwise point, is not violative of 46 U.S.C. App. 289 or
883.

     2.  Pursuant to 46 U.S.C. 316(a), if the floating garages are
towed from one coastwise point to a second coastwise point, such
towing must be performed by a coastwise-qualified vessel.



                              Sincerely,



                              Arthur P. Schifflin
                              Chief
                              Carrier Rulings Branch