us-cbp-cross-rulings-hq-109690•HQ 109690: Use of a foreign vessel to lay cable in U.S. waters
HQ 109690: Use of a foreign vessel to lay cable in U.S. waters
us-cbp-cross-rulings-hq-109690HQ 109690: Use of a foreign vessel to lay cable in U.S. watersGuidance
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 109690
August 25, 1988
VES-3-01 CO:R:P:C: 109690 DHR
CATEGORY: Carriers
Mr. K. A. Grainger
Harmstorf Corporation
60 East 42nd Street
New York, New York 10165
RE: Use of a foreign vessel to lay cable in U.S. waters
Dear Mr. Grainger:
This is with reference to your letter of August 4,
1988, concerning the proposed operation of a foreign
cable-laying vessel in U.S. waters.
FACTS:
It is proposed to lay an underwater cable in U.S.
waters (New York Sound) between one U.S. point and another
such point. It is intended to use the specialized West
German cable-laying barge ELBE. The cables would be
carried on a U.S.-owned cable- carrying barge.
ISSUE:
1. Can a foreign vessel lay cable in U.S. waters
between U.S. points without violating section 883, title
46, United States Code Appendix.
2. If the vessel can so operate, what are the
requirements concerning Customs duties, fees, and work
permits for foreign workers.
LAW AND ANALYSIS:
Section 883, title 46, United States Code Appendix,
prohibits the transportation of merchandise between ports
or places in the United States on a foreign-built or
foreign-owned vessel. The Customs Service has consistently
held that the laying of underwater cable between two points
embraced within the coastwise laws of the United States by
a foreign vessel is in violation of no law administered by
this agency. Such a vessel, however, could not be used to
transport the cable between U.S. points. It is the fact
that the cable is not landed as cargo, but only paid out in
the course of the laying operation, which makes the
activity permissible.
Section 1435 of title 19, United States Code, provides
that a vessel must make entry upon arrival at every port or
place in the United States. Pursuant to sections 313 and
314, title 46, United States Code Appendix, a foreign
vessel is required to obtain from Customs a permit to
proceed from one U.S. point or place to another such point
or place.
Also, pursuant to section 58c of title 19, a
commercial vessel of 100 net tons or more is subject to a
user fee of $397.00 upon its arrival in the United States.
Also there are navigation fees of $18.00 each for making
entry, clearing, and obtaining a permit to proceed.
The cable is dutiable under Part 5 of Schedule 6,
Tariff Schedules of the United States. Because the rate of
duty depends on the type of cable, it is suggested that
complete specifications and/or a sample of the cable be
submitted to Customs in New York for a binding
classification.
HOLDING:
1. There is no law administered by the Customs
Service which would prohibit the laying of an underwater
cable between points or places in the United States.
2. The vessel would be subject to the fees discussed
above. There are no duties on commercial vessels. Work
permits are within the purview of the Immigration and
Naturalization Service, Department of Justice.
Sincerely,
E. H. Mach
Assistant Commissioner
Commercial Operations
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