HQ 109690: Use of a foreign vessel to lay cable in U.S. waters

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 109690

                                    August 25, 1988

            VES-3-01 CO:R:P:C: 109690 DHR

            CATEGORY: Carriers

            Mr. K. A. Grainger
            Harmstorf Corporation
            60 East 42nd Street
            New York, New York 10165

            RE: Use of a foreign vessel to lay cable in U.S. waters

            Dear Mr. Grainger:

                 This is with reference to your letter of August 4,
            1988, concerning the proposed operation of a foreign
            cable-laying vessel in U.S. waters.

            FACTS:

                 It is proposed to lay an underwater cable in U.S.
            waters (New York Sound) between one U.S. point and another
            such point.  It is intended to use the specialized West
            German cable-laying barge ELBE.  The cables would be
            carried on a U.S.-owned cable- carrying barge.

            ISSUE:

                 1.  Can a foreign vessel lay cable in U.S. waters
            between U.S. points without violating section 883, title
            46, United States Code Appendix.

                 2.  If the vessel can so operate, what are the
            requirements concerning Customs duties, fees, and work
            permits for foreign workers.


            LAW AND ANALYSIS:

                 Section 883, title 46, United States Code Appendix,
            prohibits the transportation of merchandise between ports
            or places in the United States on a foreign-built or
            foreign-owned vessel.  The Customs Service has consistently
            held that the laying of underwater cable between two points
            embraced within the coastwise laws of the United States by
            a foreign vessel is in violation of no law administered by
            this agency.  Such a vessel, however, could not be used to
            transport the cable between U.S. points.  It is the fact
            that the cable is not landed as cargo, but only paid out in
            the course of the laying operation, which makes the
            activity permissible.

                 Section 1435 of title 19, United States Code, provides
            that a vessel must make entry upon arrival at every port or
            place in the United States.  Pursuant to sections 313 and
            314, title 46, United States Code Appendix, a foreign
            vessel is required to obtain from Customs a permit to
            proceed from one U.S. point or place to another such point
            or place.

                 Also, pursuant to section 58c of title 19, a
            commercial vessel of 100 net tons or more is subject to a
            user fee of $397.00 upon its arrival in the United States.
            Also there are navigation fees of $18.00 each for making
            entry, clearing, and obtaining a permit to proceed.

                 The cable is dutiable under Part 5 of Schedule 6,
            Tariff Schedules of the United States.  Because the rate of
            duty depends on the type of cable, it is suggested that
            complete specifications and/or a sample of the cable be
            submitted to Customs in New York for a binding
            classification.

            HOLDING:

                 1.  There is no law administered by the Customs
            Service which would prohibit the laying of an underwater
            cable between points or places in the United States.

                 2.  The vessel would be subject to the fees discussed
            above.  There are no duties on commercial vessels.  Work
            permits are within the purview of the Immigration and
            Naturalization Service, Department of Justice.


                               Sincerely,




                                    E. H. Mach
                                    Assistant Commissioner
                                    Commercial Operations