HQ 113217: Coastwise Trade; 46 U.S.C. App. 289, 883

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 113217

                        Septembe 23, 1994

VES-3-CO:R:IT:C 113217 GEV

CATEGORY:  Carriers

Darrel R. Eskelund
Eskelund Marine
Post Office Box 2742
Alameda, California 94501

RE:  Coastwise Trade; 46 U.S.C. App.  289, 883

Dear Mr. Eskelund:

     This is in response to your letter dated May 20, 1994,
regarding the documentation endorsement applicable to your
vessel.  Our ruling on this matter is set forth below.

FACTS:

     You state that you purchased a 25' motor boat for the
purpose of transporting yourself in your capacity as a marine
engine mechanic and your equipment to various work sites around
the San Francisco Bay region.  The vessel was documented by its
previous owner for both fisheries and recreational use.  You
further state that the vessel will not be use to carry passengers
or cargo for hire, nor will it be used to operate a towing
service.

ISSUE:

     Whether the use of a vessel in transporting a marine engine
mechanic and his equipment to various work sites around the San
Francisco Bay region constitutes a use in the coastwise trade
within the meaning of 46 U.S.C. App.  289 or 883 so that its
certificate of documentation must be endorsed for the coastwise
trade pursuant to 46 U.S.C.  12106.

LAW AND ANALYSIS:

     Title 46, United States Code Appendix,  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 

                              - 2 -

owned by persons who are citizens of the United States).  For
purposes of  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))

     Title 46, United States Code Appendix,  883 (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
and documented under the laws of the United States and owned by
persons who are citizens of the United States (i.e., a coastwise-qualified vessel).  Pursuant to 19 U.S.C.  1401(c), the word
"merchandise" is defined, in pertinent part, as meaning
"...goods, wares, and chattels of every description..."

     Points embraced within the coastwise laws include all points
within the territorial waters of the United States, including
points within a harbor.  The territorial waters of the United
States consist of the territorial sea, 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, in cases where the baseline and the coastline
differ.

     In regard to the proposed use of the subject vessel, it is
clear that you as the owner of the vessel would not be a
passenger within the meaning of  4.50(b), Customs Regulations
discussed above.  Consequently, the vessel would not be used in
the coastwise trade as contemplated by 46 U.S.C. App.  289. 
However, the transportation of your equipment, considered
"merchandise" as defined in 19 U.S.C.  1401(c), would constitute
a use in the coastwise trade for purposes of 46 U.S.C. App. 
883.  

     Accordingly, the vessel's certificate of documentation must
be endorsed for the coastwise trade pursuant to 46 U.S.C. 
 12106 in order to lawfully engage in the activity described
above.
                              - 3 -

HOLDING:

      The use of a vessel in transporting the equipment of a
marine engine mechanic to various work sites around the San
Francisco Bay region constitutes a use in the coastwise trade
within the meaning of 46 U.S.C. App.  883 so that its
certificate of documentation must have a coastwise endorsement 
pursuant to 46 U.S.C.  12106.

                              Sincerely,




                              Arthur P. Schifflin
                              Chief
                              Carrier Rulings Branch