HQ 112173: Coastwise Trade; Crane Barge; 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 112173

                          May 21, 1992

VES-3-CO:R:IT:C 112173 GEV

CATEGORY:  Carriers

Tom Dlubac
Meramec Marine Shipyard Inc.
6789 Christopher Drive
St. Louis, Missouri 63129

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

Dear Mr. Dlubac:

     This is in response to your letters dated March 26, 1992 and
April 14, 1992 (the latter enclosing a photograph), requesting a
ruling on the proposed use of a crane barge.  Our ruling is set
forth below.

FACTS:

     Meramec Marine Shipyard Inc. ("Meramec"), a U.S. corporation
located in St. Louis, Missouri, proposes to use a U.S.-built,
self-propelled crane barge to provide repair and crane service to
grain barges at a loading and discharge facility.  The vessel,
which was built in Meramec's yard, will be operated on waters
located in the State of Missouri.

ISSUE:

     Whether the use of a crane barge to provide repair and crane
service to grain barges located on waters in the State of
Missouri constitutes a use in the coastwise trade within the
purview of 46 U.S.C. App. 289 or 883.

LAW AND ANALYSIS:

     Title 46, United States Code Appendix, section 883 (the
merchandise coastwise law often called the "Jones Act") prohibits
the transportation of merchandise between United States coastwise
points, 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).

                              - 2 -

     Pursuant to section 4.80b, Customs Regulations (19 CFR
4.80b), a coastwise transportation of merchandise takes place,
within the meaning of the 46 U.S.C. App. 883, when merchandise
laden at a point embraced within the coastwise laws ("coastwise
point") is unladen at another coastwise point, regardless of the
origin or ultimate destination of the merchandise.

     Title 46, United States Code Appendix, section 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 owned by persons who are citizens of the United
States).  For purposes of section 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))

     In interpreting the coastwise laws, Customs has ruled that a
point in United States territorial waters is a point in the
United States embraced within the coastwise laws.  The
territorial waters of the United States consist of the
territorial sea, defined as the belt, 3 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.

     The Customs Service has long held that the use of a non-
coastwise-qualified crane vessel to load and unload cargo or
construct or dismantle a marine structure is not coastwise trade
and does not violate the coastwise laws, provided, that any
movement of merchandise is effected exclusively by the operation
of the crane and not by movement of the vessel, except for
necessary movement which is incidental to a lifting operation
while it is taking place.  Thus, such a crane barge could lift
merchandise with its crane at one coastwise point, be pivoted
while remaining in one location, and put down the merchandise at
a place other than that from which it was lifted.  The crane
barge would be prohibited from lifting merchandise with its crane
at one coastwise point while the merchandise is suspended from
the crane, and placing the merchandise at a second coastwise
point (see Customs ruling VES-3-CO:R:P:C 106351 PH, dated
November 1, 1983; and VES-3/VES-10-01 CO:R:P:C 108213 PH, dated
March 6, 1986).

     In regard to the vessel under consideration, due to the lack
of specificity in the information submitted regarding the
proposed repair and crane services, we are unable to render a
definitive ruling as to whether these services constitute
coastwise trade for purposes of the applicability of 46 U.S.C.
App. 289 or 883.  We note, however, that the crane barge is U.S.-
                              - 3 -

built and U.S.-owned.  Accordingly, notwithstanding the lack of a
definitive ruling on this matter, it is probable that the subject
vessel would qualify for a certificate of documentation with a
coastwise endorsement pursuant to 46 U.S.C. 12106.  In view of
the fact that this statute is administered by the U.S. Coast
Guard, we suggest that you contact that agency regarding this
matter.

HOLDING:

     The use of a crane barge to provide crane and repair
services to grain barges at a loading and discharge facility
located in the State of Missouri may or may not constitute a use
in the coastwise trade within the purview of 46 U.S.C. App. 289
or 883.  The lack of specific information regarding the proposed
operations under consideration precludes Customs from rendering
a definitive ruling in this matter.

     However, since the crane barge is U.S.-built and owned, it
appears to qualify for a certificate of documentation endorsed
for the coastwise trade pursuant to 46 U.S.C. 12106.  We defer to
the U.S. Coast Guard in this regard since that agency
administers the vessel documentation laws of the United States.

                              Sincerely,




                              B. James Fritz
                              Chief
                              Carrier Rulings Branch