HQ 113280: Coastwise transportation of persons: Passengers: Company employees; 46 U.S.C. App. 289

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.

                        November 23, 1994




                            HQ 113280




VES-3-02-CO:R:IT:C  113280 LLB

CATEGORY:  Carriers

Ms. Ernestina Franco
Inchcape Shipping Services
100 West Broadway, Suite 200
Long Beach, California 90802

RE:  Coastwise transportation of persons: Passengers: Company
     employees; 46 U.S.C. App. 289

Dear Ms. Franco:

     Reference is made to your memorandum dated November 23, 1994,
which forwarded for our consideration and determination, questions
concerning the transportation of persons between coastwise points
on a non-coastwise-qualified vessel.

FACTS:

     Silversea Cruises, Ltd., of Ft. Lauderdale, Florida, proposes
to transport certain persons aboard its vessel the M.V. SILVER
CLOUD beginning on November 25, 1994.  It is proposed that sixteen
(16) persons be embarked in the port of Long Beach, California, and
travel with the vessel to San Francisco.  At that port, four (4) of
those persons would disembark, thus severing their connection with
the voyage.  The remaining twelve (12) persons would return with
the vessel to Long Beach where they would disembark.  All of the
persons under consideration are reported to be paid employees of
Silversea Cruises.

ISSUE:

     Whether the persons described in this ruling may be
transported aboard the named vessel as anticipated without
incurring violations of the Passenger Vessel Act of 1886, codified
at 46 U.S.C. App. 289.







                              - 2 -


LAW AND ANALYSIS:

     The coastwise passenger transportation statute prohibits the
transportation of passengers between points in the United States
embraced within the coastwise laws in any vessel other than a
vessel built in, documented under the laws of, and owned by
citizens of the United States.  The statute, 46 U.S.C. App. 289,
provides that:

       No foreign vessel shall transport
       passengers between ports or places in the
       United States either directly or by way
       of a foreign port, under penalty of $200
       for each passenger so transported and
       landed.

  For purposes of the coastwise laws, a vessel "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."  (Section 4.50(b), Customs Regulations (19 CFR
4.50(b))). 

  The Customs Service has ruled that persons connected with
the ownership or business of vessels are not passengers within the
meaning of the statutory proscription, regardless of whether a fare
is paid for their transportation.  Such persons would include paid
employees of the vessel operator.  Examples of this position may be
seen in Customs ruling letters 103279 (February 7, 1978), 108944
(May 8, 1987), and 111255 (February 6, 1991).

HOLDING:

     Following thorough consideration of the facts as well as an
analysis of the law and applicable precedents, we have determined
that the transportation of paid company employees aboard the vessel
under consideration would not constitute the transportation of
passengers as contemplated in the law and regulations.  The persons
under consideration may be transported as planned without incurring
violations of 46 U.S.C. 289.

                                  Sincerely,




                                  Arthur P. Schifflin
                                  Chief
                                  Carrier Rulings Branch