HQ 111832: Coastwise Trade; Passengers; 46 U.S.C. App. 289c

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 111832

                        February 10, 1992

VES-3-07-CO:R:IT:C 111832 GEV

CATEGORY:  Carriers

William E. Owens
Operations Manager
Ivaran Agencies, Inc.
Newport Financial Center
111 Pavonia Avenue
Jersey City, N.J. 07310-1755

RE:  Coastwise Trade; Passengers; 46 U.S.C. App. 289c

Dear Mr. Owens:

     This is in reference to your letter dated October 4, 1991,
enclosing a copy of your letter to Kathleen M. Haage, Area
Director, U.S. Customs Service, Newark, New Jersey, and her
response advising you to contact the Carrier Rulings Branch at
Customs Headquarters in Washington, D.C. for a ruling on this
matter.  Our ruling is set forth below.

FACTS:

     Ivaran Agencies operates a vessel service between the United
States and the east coast of South America.  One of the vessels
on this service is the M.S. AMERICANA, a Norwegian-flag,
passenger/container vessel.  This vessel has recently begun
calling San Juan, Puerto Rico for containers to and from South
American ports, and has found some interest their passenger
service to the United States, most notably, the Port of New York.
Ivaran Agencies has contacted Customs as to the ramifications of
this passenger service with respect to the administration of the
coastwise laws.

ISSUE:

     Whether the use of a foreign-flag vessel to transport
passengers between Puerto Rico and the United States is permitted
pursuant to 46 U.S.C. App. 289c.

                              - 2 -

LAW AND ANALYSIS:

     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))

     However, Public Law 98-563, which was signed into law on
October 30, 1984, and became effective on November 15, 1984,
created an exception to the passenger coastwise law by providing
that passengers may be transported between ports in the United
States and Puerto Rico on non-coastwise-qualified vessels only on
the condition that coastwise-qualified service for such
transportation is not available.  This exception is codified at
46 U.S.C. App. 289c and set forth in the Customs Regulations at
19 CFR 4.80a(c).  There is no such coastwise-qualified service at
this time.

     Accordingly, passengers may be transported on the M.S.
AMERICANA between Puerto Rico and the United States without
violating the passenger coastwise law.

HOLDING:

     The use of a foreign-flag vessel to transport passengers
between Puerto Rico and the United States is permitted pursuant
to 46 U.S.C. App. 289c.

                              Sincerely,




                              B. James Fritz
                              Chief
                              Carrier Rulings Branch