HQ 112324: Coastwise Trade; Passengers; 46 U.S.C. app. 289; M/V GRUZIYA

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 112324

                          June 30, 1992

VES-3-06-CO:R:IT:C 112324 MLR

CATEGORY:  Carriers

Captain Mato Bozovic
Odessa America Cruise Co.
170 Old Country Road
Suite 608
Mineola, New York  11501

RE:  Coastwise Trade; Passengers; 46 U.S.C. app. 289; M/V GRUZIYA

Dear Mr. Bozovic:

     This is in response to your facsimile dated June 22, 1992,
requesting a ruling as to whether a proposed cruise itinerary is
in compliance with 46 U.S.C. app. 289.  Our ruling is set forth
below.

FACTS:

     The proposed cruise itinerary for the M/V GRUZIYA, a non-
coastwise-qualified vessel is as follows:

               Cruise Dates:  October 11-27, 1992

PORT                     ARRIVAL        DEPARTURE      REMARKS

New York/New York        ------         Sun. 10/11     Embark
                                        03:00 PM       Passengers

Newport News/Virginia    Mon. 10/12     Mon. 10/12
(For Williamsburg)       10:00 AM       06:00 PM

At Sea                   Tue. 10/13

Charleston/              Wed. 10/14     Wed. 10/14
South Carolina           08:00 AM       06:00 PM

At Sea                   Thu. 10/15

At Sea                   Fri. 10/16

Port Antonio/Jamaica     Sat. 10/17     Sat. 10/17
                         08:00 AM       02:00 PM
At Sea                   Sun. 10/18

San Blas Islands         Mon. 10/19     Mon. 10/19
                         08:00 AM       04:00 PM

Panama Canal             Tue. 10/20     Tue. 10/20
Semi Transit             08:00 AM       06:00 PM

Limon/Costa Rica         Wed. 10/21     Wed. 10/21
                         08:00 AM       10:00 PM

At Sea                   Thu. 10/22

At Sea                   Fri. 10/23

Belize City/Belize       Sat. 10/24     Sat. 10/24
                         07:00 AM       06:00 PM

Cancun/Mexico            Sun. 10/25     Sun. 10/25
                         08:00 AM       10:00 PM

At Sea                   Mon. 10/26

St. Petersburg/Florida   Tue. 10/27                    Disembark
                         08:00 AM                      Passengers

ISSUE:

     Whether the transportation of passengers aboard a non-
coastwise-qualified vessel on the itinerary described above
constitutes a violation of 46 U.S.C. app. 289.

LAW AND ANALYSIS:

     Title 46, United States Code Appendix, section 883 (the
merchandise coastwise law often called the "Jones Act") prohibits
the transportation of merchandise between United States coastwise
points, either directly or via a foreign port, or for any part of
the transportation, in any 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.

     In interpreting section 883, Customs has ruled that a point
in United States territorial waters is a point in the United
States embraced within the coastwise laws.  The territorial
waters of the United States consist of the territorial sea,
defined as the belt, 3 nautical miles wide, seaward of the
territorial sea baseline, and to points located in internal
waters, landward of the territorial sea baseline, in cases where
the baseline and the coastline differ.

     Title 46, United States Code Appendix, section 289 (46
U.S.C. app. 289, the passenger coastwise law), prohibits the
transportation of passengers between points embraced within the
coastwise laws of the United States, either directly or by way of
a foreign port, in a non-coastwise-qualified vessel (i.e., any
vessel not built in and documented under the laws of the United
States and owned by persons who are citizens of the United
States).  For purposes of section 289, "passenger" is defined as
"...any person carried on a vessel who is not connected with the
operation of such vessel, her navigation, ownership, or
business."  {19 CFR 4.50(b)}.

     The applicable Customs Regulations promulgated pursuant to
46 U.S.C. app. 289 are set forth in title 19, Code of Federal
Regulations, section 4.80a (19 CFR 4.80a).  Section 4.80a(b)(2),
Customs Regulations {19 CFR 4.80a(b)(2)}, provides that a
coastwise violation occurs if a passenger is on a voyage to one
or more coastwise points and a nearby foreign port or ports (but
at no other foreign port) and the passenger disembarks at a
coastwise port other than the port of embarkation.  Section
4.80a(b)(3), Customs Regulations {19 CFR 4.80a(b)(3)}, provides
that no coastwise violation occurs if a 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
provided the passenger has proceeded with the vessel to a distant
foreign port.

     Section 4.80a(a)(3) of the Customs Regulations defines a
distant foreign port as any foreign port that is not a nearby
port.  A nearby foreign port is defined as

          any foreign port in North America, Central America, the
          Bermuda Islands, or the West Indies (including the
          Bahama Islands, but not including the Leeward Islands
          of the Netherlands Antilles, i.e., Aruba, Bonaire, and
          Curacao).  A port in the U.S. Virgin Islands shall be
          treated as a nearby foreign port.

{19 CFR 4.80a(2)}.  (See also 19 CFR 4.80a(a)(1) and (4) for the
definitions of the terms "coastwise port", "embark", and
"disembark," as those terms are used in the regulation, copy
enclosed).

     In regard to the proposed cruise itinerary, the
transportation of a passenger from New York, New York, to St.
Petersburg, Florida, would constitute a violation of the
passenger coastwise law because the passenger has made a voyage
between coastwise points which included only a call at "nearby
foreign ports" (Port Antonio, Jamaica; San Blas Islands; Panama
Canal Semi Transit; Limon, Costa Rica; Belize City, Mexico; and
Cancun, Mexico) in violation of 19 CFR 4.80a(b)(2).  The
itinerary still involves going from one coastwise point to
another coastwise point without going to a distant foreign port.

HOLDING:

     The transportation of passengers aboard a non-coastwise-
qualified vessel on the itinerary described above constitutes a
violation of 46 U.S.C. app. 289, in that the voyage does not
include a call at a "distant foreign port".

     If you have any further questions, please contact Ms. Rice
at (202) 566-5706.

                                   Sincerely,




                                   B. James Fritz
                                   Chief
                                   Carrier Rulings Branch

Enclosure