HQ 112520: Coastwise; Waiver; 46 U.S.C. 883; Safety; National Defense; Monrovia; Liberia; War.

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 112520
                                             
                                
                        November 20, 1992                   
                    

VES-13-18-CO:R:IT:C  112520 GFM

CATEGORY:  Carriers

Mr. Peter A. Carter
Operations Manager
Biehl & Co., Inc.
5200 Holister
Houston TX  77040

RE:  Coastwise; Waiver; 46 U.S.C. 883; Safety; National Defense;
     Monrovia; Liberia; War.


Dear Sir:

     This is in response to your letter of November 17, 1992, in
which you request a waiver of the coastwise laws on behalf of the
non-coastwise qualified vessel, the M/V HARBEL CUTLASS.

FACTS:

     You state that the subject vessel sailed from the port of
Baltimore, Maryland, on November 19, 1992, with a cargo of eleven
containers of general cargo and ten farm tractors bound for
Monrovia, Liberia.  However, you now state that civil unrest in
that country threatens to jeopardize the safety of the vessel's
cargo and crew.  As a result, you now wish to unlade said cargo
at the port of Houston, Texas, for storage until such time as
conditions improve at the port of destination.  Accordingly, you
request a waiver of the coastwise laws to permit such a movement.

ISSUE:

     May coastwise waivers be granted when perceived dangerous
conditions at the port of destination threaten the safety of the
cargo or crew of vessels bound for such destinations?


LAW AND ANALYSIS:

     The coastwise law pertaining to the transportation of
merchandise, 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 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 navigation laws (including the coastwise laws) can only
be waived under the authority provided by the Act of December 27,
1950 (64 Stat. 1120; note preceding 46 U.S.C. App. 1).  This
statute provides that, "...[t]he head of each department or
agency responsible for the administration of the navigation and
vessel inspection laws is directed to waive compliance with such
laws upon the request of the Secretary of Defense [and] [t]he
head of such department or agency is authorized to waive
compliance with such laws ... either upon his own initiative or
upon the written recommendation of the head of any Government
agency whenever he deems that such action is in the interest of
national defense."

     With regard to the case at hand, it is clear that the
interest involved is not one of national defense, but one of
private economic benefit.  Accordingly, it is clear that a waiver
of the coastwise laws cannot be granted.

     We note, however, that no violation of the coastwise laws
would occur if the goods are unladen at the original port of
lading, or at a non-coastwise (foreign) point, for storage and
eventual shipment to the port of destination, so long as, during
that process, the goods are not unladen at a U.S. coastwise
point.


HOLDING:

     In accordance with the Law and Analysis portion of this
ruling, the request for a waiver of the coastwise laws is denied.


                                        Sincerely, 





                                        Acting Branch Chief