HQ 111759: Coastwise; Merchandise; Towing; Marshall Islands; 46 U.S.C. App. 883; 46 U.S.C. App. 316.

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 111759

                         August 12, 1991

VES-3   CO:R:IT:C  111759  JBW

CATEGORY:   Carriers

Mr. Gary D. Smith
10419 N.E. 32nd Place
Suite E-304
Bellevue, Washington 98004

RE:  Coastwise; Merchandise; Towing; Marshall Islands; 46 U.S.C.
     App. 883; 46 U.S.C. App. 316.

Dear Mr. Smith:

     This letter is in response to your inquiry, mailed June 11,
1991, in which you request a ruling on the application of the
coastwise laws to shipping activities in the Marshall Islands.

FACTS:

     In your letter, you state that you will bid on a project
that will take place in the Marshall Islands, Kwajalein Atoll.
The work may involve the use of tugs, barges, and supply vessels.

ISSUE:

     Whether the coastwise laws apply to the Marshall Islands.

LAW AND ANALYSIS:

     The coastwise laws of the United States prohibit the
transportation of merchandise between points in the United States
embraced within the coastwise laws, either directly or via a
foreign port, 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. 46 U.S.C.A. App.
883 (West Supp. 1991)(referred to as "the Jones Act").  Further,
Section 316(a) of Title 46, United States Code Appendix,
prohibits the use of a non-coastwise-qualified vessel to tow any
vessel, other than a vessel in distress, between ports or places
in the United States embraced within the coastwise laws, either
directly or by way of a foreign port, or to do any part of such
towing, or to tow any such vessel between points in a harbor of
the United States.   46 U.S.C.A. App. 316(a) (West Supp. 1991).
Generally, the coastwise laws apply to points within the
territorial sea of the United States, 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.  Headquarters Ruling Letter 111275, dated November 13,
1990.

     Application of United States law to the Republic of the
Marshall Islands is governed by Article VII of the Compact of
Free Association between the United States and the governments of
the Republic of the Marshall Islands and the Federated States of
Micronesia ("Compact"), as approved in the Compact of Free
Association Act of 1985.  Codified at 48 U.S.C.A. 1681 note
(1987).  Pursuant to section 171 of the Compact:

          Except as provided in this Compact or its
          related agreements, the application of the
          laws of the United States to the Trust
          Territory of Pacific Islands by virtue of the
          Trusteeship Agreement ceases with respect to
          the Republic of the Marshall Islands and the
          Federated States of Micronesia as of the
          effective date of this Compact.

     The Compact makes no provision for the application of the
coastwise laws, including the coastwise towing statute, to the
Republic of the Marshall Islands.  Furthermore, we are aware of
no agreement extending the coastwise laws of the United States to
the parties to the Compact.  By Presidential Proclamation, the
President of the United States declared that, as of October 21,
1986, the Republic of the Marshall Islands are "self-governing
and no longer subject to the Trusteeship and that the Compact of
Free Association is in effect.  Proc. No. 5564, 51 Fed. Reg.
40399 (1986).  Accordingly, the coastwise laws are not applicable
to the Republic of the Marshall Islands.  Headquarters Ruling
Letter 110657, dated February 14, 1990.

HOLDING:

     The coastwise laws are not applicable to the Republic of the
Marshall Islands.


                              Sincerely,



                              B. James Fritz
                              Chief
                              Carrier Rulings Branch