Passenger Vessel Services Act

Published CBP guidance; operative status and applicability must be assessed from the retained publisher edition.

The Passenger Vessel Services Act
September 2019

1
U.S. Customs and Border Protection

NOTICE:

This publication is intended to provide guidance and information to the trade community.
It reflects the position on or interpretation of the applicable laws or regulations by U.S.
Customs and Border Protection (CBP) as of the date of publication, which is shown on
the front cover. It does not in any way replace or supersede those laws or regulations.
Only the latest official version of the laws or regulations is authoritative.

Publication History

First Published April 2010
Revised September 2019

PRINTING NOTE:

This publication was designed for electronic distribution via the CBP website
(https://www.cbp.gov
) and is being distributed in a variety of formats. It was originally set
up in Microsoft Word97
®
. Pagination and margins in downloaded versions may vary
depending upon which word processor or printer you use. If you wish to maintain the
original settings, you may wish to download the .pdf version, which can then be printed
using the freely available Adobe Acrobat Reader
®
.

The Passenger Vessel Services Act
September 2019

2
U.S. Customs and Border Protection
PREFACE

On December 8, 1993, Title VI of the North American Free Trade Agreement
Implementation Act (Pub. L. 103-182, 107 Stat. 2057), also known as the Customs
Modernization or “Mod” Act, became effective. These provisions amended many sections
of the Tariff Act of 1930 and related laws.

Two new concepts that emerged from the Mod Act are “informed compliance” and
“shared responsibility,” which are premised on the idea that in order to maximize
voluntary compliance with laws and regulations of CBP, the trade community needs to be
clearly and completely informed of its legal obligations. Accordingly, the Mod Act imposes
a greater obligation on CBP to provide the public with improved information concerning
the trade community's rights and responsibilities under CBP regulations and related laws.
In addition, both the trade and CBP share responsibility for carrying out these
requirements. For example, under Section 484 of the Tariff Act, as amended (19 U.S.C.
§ 1484), the importer of record is responsible for using reasonable care to enter, classify
and determine the value of imported merchandise and to provide any other information
necessary to enable CBP to properly assess duties, collect accurate statistics, and
determine whether other applicable legal requirements, if any, have been met. CBP is
then responsible for fixing the final classification and value of the merchandise. An
importer of record’s failure to exercise reasonable care could delay release of the
merchandise and, in some cases, could result in the imposition of penalties or, in certain
instances, referral for criminal enforcement.

The Office of Trade, Regulations and Rulings (RR) has been given a major role in meeting
the informed compliance responsibilities of CBP. In order to provide information to the
public, CBP has issued a series of informed compliance publications, on new or revised
requirements, regulations or procedures, and a variety of classification and valuation
issues.

This publication, prepared by the Border Security and Trade Compliance Division, RR, is
entitled “The Passenger Vessel Services Act.” It provides guidance regarding the
procedures that control the coastwise transportation of passengers between U.S. ports.
It is part of a series of informed compliance publications advising the public of CBP
regulations and procedures. We sincerely hope that this material, together with seminars
and increased access to rulings of CBP, will help the trade community to improve
voluntary compliance with customs laws and to understand the relevant administrative
processes.

The material in this publication is provided for general information purposes only.
Because many complicated factors can be involved in customs issues, an importer may
wish to obtain a ruling under the CBP Regulations, 19 C.F.R. Part 177, or to obtain advice
from an expert who specializes in customs maritime matters, for example, a maritime
attorney or a vessel agent.

The Passenger Vessel Services Act
September 2019

3
U.S. Customs and Border Protection

Comments and suggestions are welcomed and should be addressed to the Executive
Director, Regulations and Rulings, Office of Trade, U.S. Customs and Border Protection,
90 K Street, NE, 10
th
Floor, Washington, D.C. 20229-1177.

Alice A. Kipel
Executive Director, Regulations and Rulings
Office of Trade

The Passenger Vessel Services Act
September 2019

4
U.S. Customs and Border Protection

PREFACE ....................................................................................................................... 2
INTRODUCTION ............................................................................................................. 6
Purpose ....................................................................................................................... 6
The Coastwise Laws: Passengers vs. Merchandise .................................................... 6
APPLICABLE STATUTES ............................................................................................... 7
46 U.S.C. § 55101(a) and (b)- Application of Coastwise Laws .................................... 7
46 U.S.C. § 55103- Transportation of Passengers ...................................................... 7
43 U.S.C. § 1333- Laws and Regulations Governing Lands ........................................ 7
46 U.S.C. § 55104- Transportation of Passengers between Puerto Rico and Other
Ports in the United States ............................................................................................ 7
46 U.S.C. § 55121- Transportation of Merchandise and Passengers on Canadian
Vessels ........................................................................................................................ 7
46 U.S.C. § 12103- General Eligibility Requirements .................................................. 8
46 U.S.C. § 12112- Coastwise Endorsement .............................................................. 8
46 U.S.C. § 501- Waiver of Navigation and Vessel-Inspection Laws .......................... 8
APPLICABLE REGULATIONS ........................................................................................ 8
19 C.F.R. § 4.50(b)- Passenger Lists .......................................................................... 8
19 C.F.R. § 4.80- Vessels Entitled to Engage in Coastwise Trade .............................. 8
19 C.F.R. § 4.80a- Coastwise transportation of passengers ....................................... 9
19 C.F.R. Part 177 ....................................................................................................... 9
33 C.F.R. 2.22- Territorial Sea ..................................................................................... 9
COASTWISE TRANSPORTATION OF PASSENGERS ................................................. 9
PENALTY FOR PVSA VIOLATIONS ............................................................................ 16
EFFECT OF RULING LETTERS ................................................................................... 19
WAIVERS OF THE NAVIGATION LAWS ..................................................................... 20
WEBSITE APPENDIX ................................................................................................... 22
ADDITIONAL INFORMATION ....................................................................................... 23
The Internet .............................................................................................................. 23
CBP Regulations ...................................................................................................... 23
Customs Bulletin ..................................................................................................... 23
Importing Into the United States ............................................................................ 24
Informed Compliance Publications ........................................................................ 24
Value Publications ................................................................................................... 24
“Your Comments are Important” ............................................................................ 25

The Passenger Vessel Services Act
September 2019

5
U.S. Customs and Border Protection

The Passenger Vessel Services Act
September 2019

6
U.S. Customs and Border Protection
INTRODUCTION

Purpose

U.S. Customs and Border Protection (CBP), previously the U.S. Customs Service,
1
is
responsible for enforcing and administering laws and regulations which set forth
procedures to control and oversee vessels arriving in, and departing from, U.S. ports and
the coastwise transportation of passengers between U.S. ports.

The purpose of this Informed Compliance Publication (ICP) is to identify the laws and
regulations pertaining to the coastwise transportation of passengers, such that the trade
community is informed of its legal obligations, and in order to maximize voluntary
compliance with laws and regulations enforced by CBP.

The Coastwise Laws: Passengers vs. Merchandise

Generally, the coastwise laws prohibit the transportation of passengers or merchandise
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 coastwise law pertaining to the transportation of merchandise is
known as the Jones Act, codified at 46 U.S.C. § 55102. The coastwise law pertaining to
the transportation of passengers is known as the Passenger Vessel Services Act (PVSA),
codified at 46 U.S.C. § 55103. This document will cover the key laws and regulations
governing the transportation of passengers under the PVSA. This document is not
applicable to the transportation of merchandise under the Jones Act. Please refer to the
Coastwise Trade: Merchandise Informed Compliance Publication for information about
the Jones Act.

Specifically, in this publication, CBP will summarize:

• U.S. Statutes and Regulations Enforced by CBP Pertaining to the PVSA
• Exceptions to the PVSA
• The Penalty for Violations of the PVSA
• PVSA Ruling Requests
• Waivers of the Navigation Laws

Note: CBP interpretive rulings are cited throughout this publication. You may access the
rulings by clicking on the web link associated with the ruling number. Alternatively, you
may visit the Customs Rulings Online Search System
(CROSS) web link and enter the
ruling number in the search bar.

1
The U.S. Customs Service was removed from the Department of the Treasury and became a
component of the Department of Homeland Security (DHS), pursuant to the Homeland Security Act of
2002, Pub. L. 107-296 (Nov. 25, 2002), secs. 403, 411, and is now known as U.S. Customs and Border
Protection (DHS Delegation Number 7010.1, of June 20, 2003).

The Passenger Vessel Services Act
September 2019

7
U.S. Customs and Border Protection
APPLICABLE STATUTES

46 U.S.C. § 55101(a) and (b)- Application of Coastwise Laws

The coastwise laws apply to the United States, including U.S. island territories and
possessions. The coastwise laws do not apply to American Samoa, the Northern Mariana
Islands, and the Virgin Islands.

46 U.S.C. § 55103- Transportation of Passengers

No vessel may transport passengers between ports or places in the United States to
which the coastwise laws apply, either directly or via a foreign port, unless the vessel is:
(1) wholly owned by U.S. citizens and (2) has a certificate of documentation with a
coastwise endorsement or, if exempt from documentation, would otherwise be eligible.
2

43 U.S.C. § 1333- Laws and Regulations Governing Lands

The laws of the United States extend to the subsoil and seabed of the Outer Continental
Shelf; all artificial islands, installations, and other devices attached to the seabed “for the
purpose of exploring, developing, or producing resources therefrom”; and any installation
or device (other than a ship or vessel) used for the transportation of those resources.

46 U.S.C. § 55104- Transportation of Passengers between Puerto Rico and Other
Ports in the United States

A vessel that is not qualified to engage in the coastwise trade may transport passengers
between a port in Puerto Rico and another port in the United States until such a time as
a finding is made that a qualified U.S.-flag passenger vessel is available for such service.

46 U.S.C. § 55121- Transportation of Merchandise and Passengers on Canadian
Vessels

Until U.S. passenger service is established, Canadian passenger vessels holding permits
issued by the Secretary of Homeland Security may transport passengers between the
port of Rochester, New York, and the port of Alexandria Bay, New York. The prohibitions
of the coastwise laws do not apply to the transportation on Canadian vessels of: “1)
passengers between ports in southeastern Alaska; or 2) passengers or merchandise
between Hyder, Alaska, and other points in southeastern Alaska or in the United States
outside Alaska,” until the Secretary of Transportation determines that service by vessels
of the United States is available to provide such transportation.

2
Formerly codified at 46 U.S.C. App. § 289. Recodified by Public Law 109-304, 120 Stat. 1632 (Oct. 6,
2006).

The Passenger Vessel Services Act
September 2019

8
U.S. Customs and Border Protection
46 U.S.C. § 12103- General Eligibility Requirements

A certificate of documentation may be issued only to vessels that are wholly owned by a
U.S. citizen, the U.S. government, a state government, and/or an eligible entity,
partnership, or corporation; are at least five net tons; and are not documented under the
laws of a foreign country.

46 U.S.C. § 12112- Coastwise Endorsement

A coastwise endorsement may be issued for a vessel that meets the criteria set forth in
46 U.S.C. § 12103, was built in the United States (or if not built in the United States, was
captured in war by U.S. citizens and lawfully condemned as prize, was forfeited for a
breach of U.S. laws, or qualifies as a wrecked vessel), and otherwise qualifies to engage
in the coastwise trade. A vessel issued a coastwise endorsement may engage in the
coastwise trade.

46 U.S.C. § 501- Waiver of Navigation and Vessel-Inspection Laws

Under 46 U.S.C. § 501(a), the Secretary of Defense may request the Secretary of the
Department of Homeland Security (DHS) to waive the navigation laws to the extent the
Secretary of Defense considers such a waiver necessary in the interest of national
defense.

For all other waiver requests, under 46 U.S.C. § 501(b), the Secretary of DHS is
authorized to grant the waiver request if the Secretary of DHS considers it necessary in
the interest of national defense and if the Maritime Administrator determines there is no
coastwise-qualified vessel capacity to conduct the transportation set forth in the request.

APPLICABLE REGULATIONS

19 C.F.R. § 4.50(b)- Passenger Lists

A passenger is “any person carried on a vessel who is not connected with the operation
of such vessel, her navigation, ownership, or business.”

19 C.F.R. § 4.80- Vessels Entitled to Engage in Coastwise Trade

Vessels may not transport passengers either directly or via a foreign port between
coastwise points, including points within a harbor, unless the vessel has been issued a
coastwise endorsement on its certificate of documentation by the U.S. Coast Guard or is
exempt from documentation but otherwise eligible for a coastwise endorsement (also
known as a “coastwise-qualified vessel”). Foreign vessels, as well as U.S. vessels that
are not documented with a coastwise endorsement, may embark passengers at a U.S.
point for disembarkation at a foreign port and vice versa. Non-coastwise-qualified vessels

The Passenger Vessel Services Act
September 2019

9
U.S. Customs and Border Protection
that transport passengers between coastwise points will be penalized $300 for each
passenger transported and landed on or before November 2, 2015 and $798 for each
passenger transported and landed after November 2, 2015. A Vessel qualified to engage
in the coastwise trade will lose that right if it is sold to a foreign individual or entity, or is
placed under foreign registry (unless the vessel is 200 gross tons or less) or if it was
rebuilt (unless the entire rebuilding was done in the United States).

19 C.F.R. § 4.80a- Coastwise transportation of passengers

The CBP regulations in 19 C.F.R. § 4.80a set forth the definitions used in the enforcement
of the PVSA including “coastwise port”, “nearby foreign port” and “distant foreign port”, as
well as the meaning of “embark and disembark”. In addition, this section sets forth
scenarios that would apply the PVSA to the transportation of passengers on non-
coastwise-qualified vessels.

19 C.F.R. Part 177

CBP issues prospective ruling letters regarding the PVSA pursuant to 19 C.F.R. Part 177.

33 C.F.R. 2.22- Territorial Sea

The territorial sea of the United States means the waters, three nautical miles wide,
adjacent to the U.S. coast and seaward of the territorial sea baseline.
COASTWISE TRANSPORTATION OF PASSENGERS

There are three key elements to examine when determining whether a particular
transportation constitutes coastwise transportation. These elements are: (1) whether the
transportation is between coastwise points, (2) whether the transportation is being
provided on a coastwise-qualified vessel, and (3) whether the individuals being
transported are “passengers” within the meaning of the PVSA. This section discusses
each of these considerations in turn by examining the geographic locations where the
PVSA applies, the requirements for a vessel to be considered “coastwise-qualified,” and
the characteristics of who is a “passenger.”

Geographic Locations Where the PVSA Applies

Points in the United States, including its island territories and possessions

A non-coastwise-qualified vessel may not transport passengers directly between U.S.
coastwise ports or indirectly via several U.S. ports.
3

EXAMPLE: A coastwise transportation violation occurs when a passenger
embarks a non-coastwise-qualified vessel in San Francisco and is transported to
Seattle, where the passenger disembarks.

3
19 C.F.R. § 4.80a(b)(1).

The Passenger Vessel Services Act
September 2019

10
U.S. Customs and Border Protection
EXAMPLE: A PVSA violation occurs when passengers embark a non-coastwise-
qualified vessel in Los Angeles and are transported to several Hawaiian Islands
where the passengers go ashore temporarily then return to the vessel and
disembark in Los Angeles.

Points within the United States Three Mile Territorial Limit

The PVSA applies to the territorial sea, defined as the waters, three nautical miles
wide, adjacent to the U.S. coast and seaward of the territorial sea baseline.
4
As
such, the transportation of passengers entirely within territorial waters, even
though the passengers disembark at a coastwise point of embarkation and the
vessel touches no other coastwise point, is considered coastwise trade subject to
the coastwise laws.

Points within the United States Inland Waterways

The PVSA applies to points located in internal waters, landward of the territorial
sea baseline, including navigable waters.
5

Points on the Outer Continental Shelf

The coastwise laws, including the PVSA, apply to points on the Outer Continental
Shelf under the Outer Continental Shelf Lands Act (OCSLA). The Outer
Continental Shelf is defined as all submerged lands lying seaward of state coastal
waters (three miles offshore), which are under U.S. jurisdiction. OCSLA extends
the laws of the United States to:
o The subsoil and seabed of the OCS.
o All artificial islands, and all installations and other devices
permanently or temporarily attached to the seabed, which may be
erected thereon for the purpose of exploring for, developing, or
producing resources therefrom to the same extent as if the OCS
were an area of exclusive Federal jurisdiction within a State.
o Any such installation or other device (other than a ship or vessel) for
the purpose of transporting such resources.
6

Between U.S. Points via a “nearby foreign port”

A non-coastwise-qualified vessel may not transport passengers between U.S.
coastwise ports by way of a “nearby foreign port.”
7
A “nearby foreign port” is any
foreign port in:
o North America
o Central America

4
33 C.F.R. § 2.22(a)(2).
5
HQ 111275 (Nov. 13, 1990).
6
43 U.S.C. § 1333(a).
7
19 C.F.R. § 4.80a(b)(2).

The Passenger Vessel Services Act
September 2019

11
U.S. Customs and Border Protection
o The Bermuda Islands
o The West Indies
o EXCEPTION: Leeward Islands of the Netherlands Antilles,
i.e., Aruba, Bonaire, and Curacao

A port in the U.S. Virgin Islands shall be treated as a nearby foreign port.
8

EXAMPLE: A PVSA violation occurs when a non-coastwise-qualified vessel
embarks passengers in Los Angeles, transports them to the Hawaiian Islands and
Ensenada, Mexico, and then proceeds to San Diego where the passengers
disembark. Ensenada, Mexico is a “nearby foreign port”.

NOTE: Application of the PVSA is based on the geographic locations where passengers
“embark” and “disembark”. The transporting vessel’s itinerary, whether the passenger is
a revenue or non-revenue passenger, or how the passenger’s transportation is ticketed,
is irrelevant.

EXAMPLE: The transportation of passengers aboard a non-coastwise-qualified
vessel M/V MAURY on ticket/itinerary from San Francisco, California to
Vancouver, Canada, where the passengers depart the vessel with their luggage in
Vancouver. If the same passengers reboard the M/V MAURY in Vancouver using
different tickets and disembark at any other coastwise port other than San
Francisco, the M/V MAURY would be a violation of 46 U.S.C. § 55103.
9

Vessels Qualified to Engage in Coastwise Transportation, Coastwise-Qualified
Vessel

Although CBP determines whether the transportation activities are considered coastwise
trade, whether the vessel itself is qualified to engage in coastwise trade is determined by
the United States Coast Guard, National Vessel Documentation Center (NVDC). The
NVDC determines vessel eligibility for coastwise endorsements and issues certificates of
documentation.
10
This section discusses the general requirements that a vessel must
meet in order to be considered “coastwise-qualified.” If a vessel is coastwise-qualified, it
may engage in the coastwise trade, including transporting “passengers” between
coastwise points. In general, a coastwise-qualified vessel must be U.S.-built, owned, and
documented with a coastwise endorsement.

U.S.-built

The vessel must be built in the United States
11

8
19 C.F.R. § 4.80a(a)(2).
9
HQ H141177 (Jan. 11, 2011).
10
Questions regarding the eligibility of a vessel for documentation should be addressed to NVDC at the
NVDC website
.
11
46 U.S.C. § 12112.

The Passenger Vessel Services Act
September 2019

12
U.S. Customs and Border Protection
Note: A U.S.-built vessel will lose its eligibility to engage in the coastwise
trade if it is sold to a foreign individual or entity, or placed under foreign
registry (unless the vessel is 200 gross tons or less), or if it was rebuilt
(unless the entire rebuilding was effected in the United States).
12
Rebuild
determinations are made by the United States Coast Guard.

EXCEPTION:

The Small Vessel Waiver Program, administered by the Department of
Transportation’s Maritime Administration (MARAD), may, in certain cases
issue a waiver of the U.S.-build requirement for foreign vessels to operate
in the United States as commercial passenger vessels. In order to procure
a small vessel waiver, the vessel must meet certain eligibility requirements,
which can be found here:
https://www.maritime.dot.gov/ports/domestic-
shipping/small-vessel-waiver-program.

Owned by a U.S. citizen

The vessel must be owned by a U.S. citizen.
13

Documented by the U.S. Coast Guard with a Coastwise Endorsement

In order to be issued a certificate of documentation, the vessel must be:

(1) Owned by a U.S. citizen or another eligible owner listed in 46 U.S.C. §
12103(b)
(2) At least five net tons
(3) Not documented under the laws of a foreign country
14

In addition, a coastwise-qualified vessel must have a coastwise endorsement on
its certificate of documentation.
15

EXCEPTION:

Vessels of less than five net tons will not be documented by the U.S.
Coast Guard.
16
For those vessels to engage in coastwise
transportation, they must, except for their tonnage, otherwise be
entitled to be documented with a coastwise endorsement.
17

12
19 C.F.R. § 4.80(e).
13
46 U.S.C. § 12103(b).
14
46 U.S.C. § 12103.
15
46 U.S.C. § 12112.
16
46 U.S.C. § 12103.
17
19 C.F.R. § 4.80(a)(2).

The Passenger Vessel Services Act
September 2019

13
U.S. Customs and Border Protection
The U.S. Coast Guard’s National Vessel Documentation Center (NVDC) determines
documentation and endorsement eligibility. Please contact the NVDC at the
NVDC
website.

Who is a Passenger?

Vessels that are coastwise-qualified may transport “passengers” between coastwise
points without violating the PVSA. Non-coastwise-qualified vessels, however, are not
permitted to transport “passengers” between coastwise points.

Passenger Defined

Pursuant to 19 C.F.R. § 4.50(b), a passenger is any person carried on a vessel
who is not connected with the operation of such vessel, her navigation, ownership,
or business.
o CBP has interpreted this regulation to mean that a “passenger” within
the meaning of the PVSA is any person transported on a vessel who
is not directly and substantially connected with the operation of
the vessel, her navigation, ownership, or business.
18

EXAMPLES: The following are examples of persons who are not
“directly and substantially” related to the operation, navigation,
ownership, or business of the vessel itself.

• Travel Agents
o CBP found that two travel consultants were
passengers insofar as the individuals were
not engaged in any shipboard activities that
would be “directly and substantially” related
to the operation or business of the vessel
itself.
19

• Observers not engaged in any shipboard activities
o CBP ruled that a shipping agency trainee
transported aboard a vessel to "observe
what goes on during a vessel’s voyage" was
a “passenger” within the meaning of 46
U.S.C. § 55103 insofar as the trainee was
not "directly and substantially" connected
with the operation, navigation, ownership or
business of the vessel itself.
20

18
See 19 C.F.R. § 4.50(b) and Modification and Revocation of Customs Ruling Letters Relating to the
Applicability of Customs Position on Who is Considered a Passenger Under the Coastwise Laws,
published in the Customs Bulletin and Decisions, Vol. 36, No. 23, June 5, 2002.
19
HQ H078776 (Oct. 5, 2009).
20
HQ H008513 (Mar. 21, 2007).

The Passenger Vessel Services Act
September 2019

14
U.S. Customs and Border Protection
o CBP found that the transportation of a
terminal operations staff member aboard a
vessel to observe the "day-to-day activities
aboard the ship" to become familiar with
vessel operations may foster the business of
the shipping company, but it does not
connect the staff member directly and
substantially with the business of the vessel
itself.
21

EXAMPLES: Transportation of the following individuals on a non-
coastwise-qualified vessel would not result in a violation of the PVSA
because the activity and work aboard the vessel while the vessel is
in transit between coastwise points is “directly and substantially”
related to the operation, navigation, ownership, or business of the
vessel itself:

Operation or Navigation of the Vessel

• Auditors and inspectors conducting surveys pursuant to
the International Ship and Port Facility Security (ISPS)
Code, International Safety Management (ISM) Code,
International Convention for the Safety of Life at Sea
(SOLAS), and International Convention for the Prevention
of Pollution from Ships (MARPOL).
22

• Cargo hold cleaning crews performing cargo hold
cleaning operations.
23

• Safety and maintenance inspectors
24

• Individuals conducting safety trainings for the crew.
25

• Technicians conducting maintenance or repairs on the
vessel.
26

Ownership or Business of the Vessel

• The officers of a company owning a vessel, and, if the
corporate owner, the members of its board of directors, if
acting in their official capacities while onboard the
vessel.
27

21
HQ H083895 (Nov. 16, 2009).
22
HQ H283532 (Feb. 15, 2017).
23
HQ H290674 (Sept. 29, 2017).
24
HQ H273542 (Feb. 26, 2016).
25
HQ H285618 (Apr. 24, 2017).
26
HQ H248269 (Nov. 26, 2013).
27
HQ H069521 (Sep. 14, 2009).

The Passenger Vessel Services Act
September 2019

15
U.S. Customs and Border Protection

Spouse and Children of Officers of a Vessel

The spouse and children of officers of a vessel are not passengers. The children
must be a part of the officer’s household.
28
CBP has found the following positions
to be officers of the vessel:
• Captain/Master/Chief Officer;
29

• Chief/First Mate;
30

• Second Officer;
31

• Third Officer;
32

• Radio Officer;
33

• Chief Engineer;
34
and
• First Assistant Engineer.
35

Exceptions to the PVSA

The PVSA does not apply to:

• American Samoa, the Northern Mariana Islands, or the U.S. Virgin
Islands.

• The transportation of passengers between a port in Puerto Rico and
another port in the United States.
Note: This exception does not apply to the transportation of
passengers between ports in Puerto Rico.
36
Such a transportation
would be a violation of the PVSA.

• Canadian Vessels
o Holding a permit issued by the Secretary of the Department of
Transportation may transport passengers between Rochester,
New York and Alexandria Bay, New York.
o Transporting passengers between ports in Southeastern Alaska.
o Transporting passengers between Hyder, Alaska and other
points in southeastern Alaska or in the United States outside
Alaska.

28
See Bureau of Navigation General Letter No. 117 (May 20, 1916).
29
H281268 (Nov. 21, 2016); H259211 (Nov. 14, 2014); H205796 (Feb. 23, 2012).
30
H272001 (Jan. 12, 2016); H216023 (May 3, 2012).
31
HQ H030301 (Jun. 9, 2008).
32
H276911 (Jun. 24, 2016); H278892 (Sep. 2, 2016); H036200 (Aug. 22, 2008).
33
H030524 (Jun. 11, 2008).
34
H259697 (Dec. 1, 2014); HQ H007256 (Feb. 26, 2007).
35
H283922 (Feb. 28, 2017); HQ H007875 (Mar. 12, 2007).
36
See e.g., HQ 113255 (Oct. 25, 1994) (ruling that the transportation of passengers between Fajardo,
Puerto Rico and the islands of Culebra and Vieques, Puerto Rico was in violation of the coastwise laws).

The Passenger Vessel Services Act
September 2019

16
U.S. Customs and Border Protection

• “Voyages to Nowhere”
o Transportation of passengers by a non-coastwise-qualified
vessel from a U.S. point to the high seas (i.e. beyond the three-
mile territorial sea) or foreign waters and back to the same point
from which the passengers embarked, assuming the passengers
do not go ashore, even temporarily, at another U.S. point.
37

• Transportation between U.S. points via a “distant foreign port”
o A “distant foreign port” is any foreign port that is not defined as a
“nearby foreign port.”
38
A “nearby foreign port” is defined as any
foreign port in North or Central America, the Bermuda Islands, or
the West Indies (except the Leeward Islands of the Netherlands
Antilles, i.e., Aruba, Bonaire, and Curacao).
o Transportation of passengers on a voyage to one or more
coastwise ports and a “distant foreign port” or ports (whether or
not the voyage includes a nearby foreign port or ports) and the
passenger disembarks at a coastwise port other than the port of
embarkation, provided the passenger has proceeded with the
vessel to a “distant foreign port.”
39

EXAMPLE: A non-coastwise-qualified vessel that embarks
passengers at a U.S. port and then transports them to Aruba,
then proceeds to Key West where the passengers disembark
does not violate the PVSA. A port in Aruba is a “distant foreign
port”.
40

Immigration Matters

Regardless of whether their voyage is in compliance with the PVSA, individuals must be
in compliance with the immigration laws of the United States. Immigration status is
determined at CBP Ports of Entry.
PENALTY FOR PVSA VIOLATIONS

CBP issues monetary penalties to vessel owners and operators for each passenger
transported in violation of the PVSA. Vessel owners and operators may submit a petition
for relief from these penalties at the port where the penalty was issued. The port may
cancel or mitigate the penalty.

37
See 29 O.A.G. 318 (1912).
38
19 C.F.R. § 4.80a(b)(2).
39
19 C.F.R. § 4.80a(b)(3).
40
19 C.F.R. § 4.80a(a)(3).

The Passenger Vessel Services Act
September 2019

17
U.S. Customs and Border Protection
Penalty

* $300 for each passenger transported and landed on or before November 2,
2015.
* $798 for each passenger transported and landed after November 2, 2015.
* Issued to the vessel operator or carrier not the passenger.
CBP does not have the authority to settle charge disputes between
carriers that may have been issued penalties and their passengers
that may have caused the violation.

Petition
• Only the vessel operator or carrier or their legal
representative/agent may petition for relief from a penalty issued
for a PVSA violation.
• Filed at the CBP Port from which the penalty was issued.
• Filed after the penalty has been issued to the vessel operator or carrier.
• May contain a request that the penalty be cancelled or that the monetary
amount of the penalty be mitigated to a lower amount.
 Mitigation Requests: CBP has the sole authority to
mitigate penalties at its discretion. Please review the
Informed Compliance Publication on Mitigation Guidelines

for additional information.

IMPORTANT - MITIGATION IS NOT A WAIVER OF THE PVSA

PVSA RULING REQUESTS

PVSA ruling letters are binding guidance from CBP as to whether the activities of
individuals being transported by non-coastwise-qualified vessels would result in their
being “passengers” within the meaning of the PVSA and if so, whether their transportation
between coastwise points would result in a violation of 46 U.S.C. § 55103. The requester
or other entities with identical circumstances may rel y on the ruling and the ruling will
govern how CBP will treat the specific transaction outlined in the ruling letter. PVSA ruling
letters are not mandatory.

Who May Request a Ruling Request

PVSA rulings are binding only on the vessel owner and operator and CBP. CBP
will only accept ruling requests from vessel owners, operators or their agents, i.e.,
vessel agents, legal representatives. CBP will not accept ruling requests from any
other entity, including the individual(s) being transported, unless CBP is provided
with documentary evidence establishing that the requester has the authority to bind
the vessel owner or operator.

The Passenger Vessel Services Act
September 2019

18
U.S. Customs and Border Protection
When to Request a Ruling Request

Requests must be submitted prior to the date of embarkation.

Where to Submit a Ruling Request

Requests for PVSA rulings may be submitted by electronic mail to
PVSARULINGS@DHS.GOV
. Please indicate the name of the vessel in the
subject line of the electronic mail submission. Effective October 1, 2019, CBP
will no longer accept PVSA ruling requests through the web form at
www.cbp.gov.

What Information to Include in a Ruling Request
41

• Vessel name
• Requester name, position, and company
• Requester telephone and fax number (optional)
• Name(s) of the individuals being transported
• U.S. port of embarkation
• U.S. port of disembarkation
• Dates of embarkation and disembarkation
• A detailed description of all activities the individual(s) will conduct aboard
the vessel while it is transit
• Documentary evidence to support the ruling request, such as invoices,
contracts, agreements.
42
DO NOT SUBMIT COPIES OF PASSPORTS,
ALIEN REGISTRATION CARDS, VISAS, DRIVERS LICENSES OR
OTHER COUNTRY/STATE-ISSUED IDENTIFICATION, OR OTHER
IMMIGRATION DOCUMENTS.

EXAMPLE: A request proposes to transport Sam Smith aboard the
non-coastwise-qualified M/V LOCH BREW between Miami and
Jacksonville. Sam will be installing a stove in the vessel’s galley.
The request will not be complete unless CBP is provided with an
invoice, contract, or other document kept in the normal course of
business that shows Sam will be installing a stove aboard the M/V
LOCH BREW along with the other details of the voyage.

41
Before submitting a request for a ruling, individuals are encouraged to review 19 C.F.R. Part 177 as
well as the CBP Rulings Program Informed Compliance Publication
: What Every Member of the Trade
Community Should Know About: U.S. Customs & Border Protection Rulings Program (Dec. 2009)
available at
https://www.cbp.gov/document/publications/us-customs-and-border-protection-rulings-
program.
42
See 19 C.F.R. § 177.2(b)(4)

The Passenger Vessel Services Act
September 2019

19
U.S. Customs and Border Protection
Processing and Issuance of Ruling Letters

All ruling requests, including requests involving the PVSA, will be processed in the
order they are received, regardless of the embarkation date. In order to receive a
ruling response prior to the embarkation date, it is recommended that requests be
submitted far in advance of the voyage to allow time for processing. Requests are
not processed on weekends or when the Federal Government is closed.
Requests that do not provide the required information will experience delays in
processing. All ruling letters will issued to the requester by electronic mail and will
be published weekly on the Customs Rulings Online Search System
(CROSS).
Effect of Ruling Letters

o Rulings do not waive compliance with the PVSA and are not
“waivers.”
o Rulings do not constitute “permission” to be transported aboard the
vessel.
o Rulings remain in effect until the law changes or until CBP modifies or
revokes the ruling.
o PVSA rulings may be relied upon by different entities other than the
requester as long as facts of the issue being decided are identical.

EXAMPLE: Michael Jones will be transported between Savannah
and Boston aboard the non-coastwise-qualified, M/V ELIZA JANE
to repair a satellite dish. Michael does a search on the CROSS and
finds
H257757, involving the coastwise transportation of another
person aboard the non-coastwise-qualified M/V WESTERDAM who
will be conducting repairs to that vessel’s satellite dish. Michael or
the carrier may rely on H257757 even though the vessel names are
different, since the facts relating to what the individual is doing
aboard the vessel are identical.

Situations in Which No Ruling will be Issued

o The request is no longer prospective. The request was submitted after the
embarkation date.
o The request submitted is incomplete and the additional information
requested by CBP was submitted after the embarkation date or in
insufficient time to allow processing prior to the embarkation date.
o The request is a duplicate of a request submitted by another interested
party to the voyage/transaction.
 For example, the vessel operator submits a request for a particular
voyage and the vessel agent at the port of embarkation submits a
request for the same voyage.
o The person/entity has not established that s/he or it has the authority to
request a ruling on behalf of the vessel owner/operator.

The Passenger Vessel Services Act
September 2019

20
U.S. Customs and Border Protection
o The vessel owner/operator has already received a penalty notice for
violating the PVSA (see Penalty section above).
o The subject of the request has been ruled on previously by CBP.

EXAMPLE: In the example above involving Michael Jones, the
vessel owner decides to submit a ruling request for Michael’s
voyage. CBP will not issue the vessel owner a ruling because the
issue of whether an individual conducting satellite repairs during a
coastwise voyage is a “passenger” within the meaning of the PVSA
has been ruled on by CBP in H257557.

To determine whether CBP has previously ruled on a particular PVSA
issue, please visit CROSS.

NOTE: The vessel owner should be prepared to provide to
the CBP ports of embarkation or disembarkation proof that
Michael is repairing the vessel’s satellite during the voyage
as well as the ruling relied on should a question arise at a
CBP port of entry as to whether Michael’s transportation will
comply or complies with the PVSA.

WAIVERS OF THE NAVIGATION LAWS

The navigation laws, including the PVSA, can only be waived by the Secretary of
Homeland Security if certain requirements are met:

• The transportation requested must be “necessary in the interest of
national defense,” and
• If the waiver is requested under Section 501(b), the Maritime
Administration at the Department of Transportation has confirmed that
there are no coastwise-qualified vessels available to conduct the
transportation.
43

A request to waive the PVSA should be submitted prior to the proposed
transportation, i.e., embarkation of passengers. CBP strongly encourages
potential requesters to contact the Maritime Administration prior to
submitting a request to determine if there are any coastwise-qualified
vessels available to conduct the transportation sought.

To assist CBP with the processing of the request, the following information should
be included in the request:

• Vessel name.

43
46 U.S.C. § 501(b).

The Passenger Vessel Services Act
September 2019

21
U.S. Customs and Border Protection
• Ports and dates of embarkation and disembarkation.
• The names of the individuals being transported and any work or activity the
individuals will be conducting aboard, if any.
• An explanation why the transportation is necessary in the interest of national
defense.

The Passenger Vessel Services Act
September 2019

22
U.S. Customs and Border Protection
WEBSITE APPENDIX

Coastwise Trade: Merchandise Informed Compliance Publication
https://www.cbp.gov/document/publications/coastwise-trade-merchandise

Customs Rulings Online Search System (CROSS)
https://rulings.cbp.gov/home

National Vessel Documentation Center
https://www.dco.uscg.mil/Our-Organization/Deputy-for-Operations-Policy-and-
Capabilities-DCO-D/National-Vessel-Documentation-Center/

Maritime Administration Small Vessel Waiver Program
https://www.maritime.dot.gov/ports/domestic-shipping/small-vessel-waiver-program

Mitigation Guidelines Informed Compliance Publication
https://www.cbp.gov/trade/publications/informed-compliance-publication-mitigation-
guidelines-fines-penalties-forfeitures-and

Rulings Program Informed Compliance Publication
https://www.cbp.gov/document/publications/us-customs-and-border-protection-rulings-
program

The Passenger Vessel Services Act
September 2019

23
U.S. Customs and Border Protection
ADDITIONAL INFORMATION

The Internet

The home page of CBP on the internet provides the trade community with current,
relevant information regarding CBP operations and items of special interest. The site
posts information—which includes proposed regulations, news releases, publications and
notices, etc.—that can be searched, read online, printed or downloaded to your personal
computer. The website was established as a trade-friendly mechanism to assist the
importing and exporting community. The website also links to the home pages of many
other agencies whose importing or exporting regulations CBP helps to enforce. The
website also contains a wealth of information of interest to a broader public than the trade
community. For instance, the “Know Before You Go” publication and traveler awareness
campaign are designed to help educate international travelers.

The web address of U.S. Customs and Border Protection is https://www.cbp.gov
.

CBP Regulations

The current edition of CBP Regulations of the United States is a loose-leaf, subscription
publication available from the Superintendent of Documents, U.S. Government Printing
Office, via the internet, phone, fax, postal mail, or email. Internet:
http://bookstore.gpo.gov
. Phone: DC Metro Area: (202) 512-1800, Toll-Free: (866) 512-
1800, Monday through Friday, 8 a.m. – 4:30 p.m. EST, Fax: (202) 512-2104. Mail: U.S.
Government Printing Office, P.O. Box 979050, St. Louis, MO 63197-9000. Email:
Contactcenter@gpo.gov. A bound edition of Title 19, Code of Federal Regulations, is also
available for sale from the same address. All proposed and final regulations are published
in the Federal Register, which is published daily by the Office of the Federal Register,
National Archives and Records Administration, and distributed by the Superintendent of
Documents. Information about online access to the Federal Register may be obtained by
calling (202) 512-1530 between 8 a.m. and 4:30 p.m. EST. The Federal Register is
available online at https://www.ecfr.gov/. These notices are also published in the weekly
Customs Bulletin described below.

Customs Bulletin

The Customs Bulletin and Decisions (Customs Bulletin) is a weekly publication that
contains decisions, rulings, regulatory proposals, notices and other information of interest
to the trade community. It also contains decisions issued by the U.S. Court of International
Trade, as well as customs-related decisions of the U.S. Court of Appeals for the Federal
Circuit. The Customs Bulletin is available online at
https://www.cbp.gov/document/bulletins
.

The Passenger Vessel Services Act
September 2019

24
U.S. Customs and Border Protection
Importing Into the United States

This publication provides an overview of the importing process and contains general
information about import requirements. The current edition of Importing Into the United
States contains material explaining the requirements of the Mod Act. The Mod Act
fundamentally altered the relationship between importers and CBP by shifting to the
importer the legal responsibility for declaring the value, classification, and rate of duty
applicable to entered merchandise.

The current edition contains a section entitled "Informed Compliance." A key component
of informed compliance is the shared responsibility between CBP and the import
community, wherein CBP communicates its requirements to the importer, and the
importer, in turn, uses reasonable care to assure that CBP is provided accurate and timely
data pertaining to the importation.

Single copies may be obtained from local offices of CBP, or from the Office of Public
Affairs, U.S. Customs and Border Protection, 1300 Pennsylvania Avenue NW,
Washington, DC 20229. An online version is available at the CBP website
.

Informed Compliance Publications

CBP has prepared a number of Informed Compliance publications in the “What Every
Member of the Trade Community Should Know About:...” series. Check the website
https://www.cbp.gov for current publications.

Value Publications

Customs Valuation Encyclopedia (with updates) is comprised of relevant statutory
provisions, CBP Regulations implementing the statute, portions of the Customs Valuation
Code, judicial precedent, and administrative rulings involving application of valuation law.
This publication may also be found online.

The information provided in this publication is for general information
purposes only. Recognizing that many complicated factors may be involved
in customs issues, an importer may wish to obtain a ruling under CBP
Regulations, 19 C.F.R. Part 177, or obtain advice from an expert (such as
a licensed customs broker, an attorney or a customs consultant) who
specializes in customs matters. Reliance solely on the general information
in this pamphlet may not be considered reasonable care.

Additional information may also be obtained from CBP’s ports of entry. Please consult the
CBP website for an office near you. Contact information for ports of entry can also be
found on the internet at www.cbp.gov/contact/ports.

The Passenger Vessel Services Act
September 2019

25
U.S. Customs and Border Protection
“Your Comments are Important”

The Small Business and Regulatory Enforcement Ombudsman and 10 regional Fairness
Boards were established to receive comments from small businesses about Federal
agency enforcement activities and rate each agency’s responsiveness to small business.
If you wish to comment on the enforcement actions of U.S. Customs and Border
Protection, call 1-888-REG-FAIR (1-888-734-3247).

REPORT SMUGGLING: 1-800-BE-ALERT

Visit our website: https://www.cbp.gov