HQ 110364

VES-3-14 CO:R:P:C  110364 BEW

CATEGORY:  Carriers

Mr. Cary L. Epley

Digicon Geophysical Corporation

Land Field Service

12333-D Sowden Road

Houston, Texas 77080

RE:  Applicability of the coastwise laws to the use of a

non-coastwise-qualified oceanographic research vessel in the

exploration for oil and gas by means of Seismograph methods in

the Cooke Inlet Area of Alaska.

Dear Mr. Epley:

     This is in response to your letter of July 10, 1989,

requesting a ruling on the applicability of the coastwise laws to

the use of a (9) smaller barge pods, interlocked together to

form one barge.

FACTS:

     You state the barge will be powered by two outdrives, and

will have several pieces of equipment mounted on the barge

itself.  You state that the vessel measurements of the barge are

30′ wide, 60′ long, 5′  high.  You state that the barge will be

used for research purposes.  Your letter asks for a confirmation

of your understanding of the coastwise laws which were discussed

telephonically with Paul Hegland of my staff on July 5, 1989.

You also ask whether the barge has to be admeasured or inspected

since it is going to be used for research purposes.

ISSUE:

     May a non-coastwise-qualified barge vessel be used as a

seismograph vessel for research purposes in the Cooke Inlet Area

of Alaska without violating the coastwise laws?

                             – 2 –

LAW AND ANALYSIS:

     The coastwise law pertaining to the transportation of

passengers, the Act of June 19, 1886, as amended (24 Stat. 81;

46 U.S.C. App. 289), provides that:

          No foreign vessel shall transport passengers between

          ports or places in the United States either directly or

          by way of a foreign port, under a penalty of $200 for

          each passenger so transported and landed.

     The coastwise law pertaining to the transportation of

merchandise, section 27 of the Act of June 5, 1920, as amended

(41 Stat. 999; 46 U.S.C. App. 883, often called the Jones Act),

provides that:

          No merchandise shall be transported by water, or by

          land and water, on penalty of forfeiture of the

          merchandise (or a monetary amount up to the value

          thereof as determined by the Secretary of the

          Treasury, or the actual cost of the transportation,

          whichever is greater, to be recovered from any

          consignor, seller, owner, importer, consignee, agent,

          or other person or persons so trans-porting or causing

          said merchandise to be transported), between points in

          the United States … embraced within the coastwise

          laws, either directly or via a foreign port, or for any

          part of the transportation, in any other vessel 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 ….

     For purposes of the coastwise laws, a point in United States

territorial waters is considered a point 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, adjacent to the coast of the United States and

seaward of the territorial sea baseline.

     For purposes of section 289, “passenger” is defined in

section 4.50(b), Customs Regulations (19 CFR 4.50(b)), as “…

any person carried on a vessel who is not connected with the

operation of such vessel, her navigation, ownership, or

business.”  “Merchandise,” as used in section 883, includes any

article, including valueless merchandise pursuant to the recent

amendment of section 883 by the Act of June 7, 1988 (Public Law

100-329; 102 Stat. 588).

                              – 3 –

     It its interpretation of the coastwise laws with regard to

the issue under consideration, Customs has long held that the

use of a vessel solely to engage in oceanographic research is not

a use in the coastwise trade.  We have held that the use of non-

coastwise-qualified vessels to engage in oceanographic research,

including the transportation of persons participating in the

research from, to, and between research sites in United States

territorial waters, whether or not the persons participating in

the research temporarily leave the vessels at the research sites,

would not violate the coastwise laws.  We have held that the

collection of marine specimens at the research sites and the

transportation of those specimens from the research sites to

points in the United States would not violate the coastwise laws.

Of course, if such a vessel transported between coastwise points,

or provided part of the transportation between coastwise points

of, any persons other than the vessel crew and scientists and

students engaged in the oceanographic research or any merchandise

other than the usual supplies and equipment necessary for that

research and/or research specimens or samples, the coastwise laws

would be violated.

     We believe that this interpretation of the coastwise laws

is buttressed by the Act of July 30, 1965 (Public Law 89-99; 79

Stat. 424; 46 U.S.C. App. 441-444, often called the Oceanic

Research Vessel Act), as amended, section 3 (46 U.S.C. App. 443)

of which provides that “An oceanic research vessel shall not be

deemed to be engaged in trade or commerce.”  This Act, in defin-

ing the term “oceanographic research vessel,” defines oceano-

graphic research as “… including, but not limited to, such

studies pertaining to the sea as seismic, gravity meter and

magnetic exploration and other marine geophysical or geological

surveys, atmospheric research, and biological research” (46

U.S.C. App. 441(1)).

     From the facts given, we cannot determine whether the barge

pods were built foreign or built in the United States.  Under the

above provisions a foreign-built vessel is prohibited from

engaging in the coastwise trade.  However, we conclude that the

use of the vessel as described, to collect and do laboratory work

on data and samples for oil and gas exploration from the Cooke

Inlet Area on the Alaskan coast, is considered oceanographic

research.  The transportation of the scientists who collect and

work on the data and samples to, from, and between collection

sites in United States territorial waters in the vessel under

consideration would not violate the coastwise laws.  Neither

would the transportation of the samples collected from the points

where they are brought onto the vessel to the shore violate the

coastwise laws.  A non-coastwise-qualified vessel would, of

                              – 4 –

course, be prohibited from transporting between coastwise points

passengers (i.e., not including the scientists or vessel crew)

and/or merchandise other than the samples or the usual supplies

and equipment necessary for the research.

     Matters relating to admeasurement, inspection and the

determination of a build for a vessel for documentation purposes

are administered by the United States Coast Guard.  Your

questions relating to these issues should be directed to the

following office:

               Chief, Documentation Branch

               United States Coast Guard (G-MVI-6/13)

               2100 Second Street, SW

               Washington, D. C. 20593

HOLDING:

     A non-coastwise-qualified barge vessel may be used as a

seismograph vessel for research purposes in the Cooke Inlet Area

of Alaska without violating the coastwise laws.

                                      Sincerely,

                                       B. James Fritz

                                       Chief

                                       Carrier Rulings Branch

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