HQ 110777: Applicability of the coastwise laws to the use of a non- coastwise-qualified houseboat in the territorial waters of the United States.

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 110777

                           May 3, 1990


VES-3-15/VES-3-21  CO:R:P:C  110777 BEW

CATEGORY:  Carriers

Mr. Frank R. Kluges
1 Bayview Ave East
Lindenhurst, New York 11757

RE:  Applicability of the coastwise laws to the use of a non-
     coastwise-qualified houseboat in the territorial waters of
     the United States.

Dear Mr. Kluges:

     This is in reference to your letter dated January 28, 1990,
in which you requested a ruling on the applicability of the
coastwise laws to the use of a non-coastwise-qualified houseboat
to sell food products, supplies and trinkets in the waters of the
Great South Bay, Long Island, New York.

FACTS:

     You state that the houseboat is U.S. built but that you are
unable to obtain documents sufficient to sustain continuous U.S.
ownership.  You state that you would like to use the houseboat to
sell food products (such as hot dogs, ice cream, sodas etc.),
other supplies and trinkets.  Telephonically, you advised Ms.
Whiting of my staff that the houseboat would remain stationary at
a given location so long as it was a profitable location.

ISSUE:

     May a non-coastwise-qualified houseboat which is
permanently moored in the territorial waters of the United States
be used as a "general store" without violating the coastwise
laws?

                              - 2 -

LAW AND ANALYSIS:

     Section 27 of the Act of June 5, 1920, as amended (41 Stat.
999; 46 U.S.C. App. 883, often called the Jones Act), provides,
in pertinent part, that:

          No merchandise shall be transported by water, or
          by land and water, on penalty of forfeiture of the
          merchandise (or a monetary amount up to the value
          thereof as determined by the Secretary of the
          Treasury, or the actual cost of the
          transportation, whichever is greater, to be
          recovered from any consignor, seller, owner,
          importer, consignee, agent, or other person or
          persons so transporting or causing said
          merchandise to 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 other vessel 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 ....

     The Customs Service has consistently held that the use of a
non-coastwise-qualified vessel as a permanently moored facility
does not violate the coastwise laws, or any other law
administered by the Customs Service, provided that the vessel
remains stationary.  Customs also has held that if the vessel is
being loaded or unloaded and must be moved to another location
because of stress of weather or other reason involving the
vessel's safety, subsequently is returned to the same point to
continue its loading or unloading, and neither loads nor unloads
merchandise at any other point in the United States, the
coastwise laws are not violated.

     Although the vessel will not be engaging in coastwise trade
while in operation as a stationary "general store", the point
should be made that by virtue of its being anchored within
territorial waters, the vessel itself will become a coastwise
point.  The practical effect of this fact is that any vessel
moving merchandise or passengers between the moored houseboat and
another coastwise point (in either direction), must itself be
documented for the coastwise trade.

                              - 3 -


     Under the circumstances stated above, an undocumented U.S.-
built vessel not qualified to engage in the coastwise trade can
be used as a permanently moored "general store", without
violating the statute.  No law or regulation administered by the
United States Customs Service would preclude the use of the
permanently moored houseboat to sell general merchandise.

HOLDING:

     A non-coastwise-qualified houseboat may be used as a
permanently moored "general store" within the territorial waters
of the U.S. without violating the coastwise laws of the United
States.

                                     Sincerely,



                                     B. James Fritz
                                     Chief
                                     Carrier Rulings Branch