VES-3-14-CO:R:IT:C 112923 DEC
CATEGORY: Carriers
Mr. Earl P. Verrett
Conventional Manager
P.O. Drawer 51789
Aries Marine Corporation
Lafayette Louisiana 70505
RE: Applicability of the coastwise laws to the use of a non-
coastwise-qualified oceanographic research vessel.
Dear Mr. Verrett:
Reference is made to your facsimile transmittal of October 19,
1993, in which you inquired as to the legality of utilizing a
foreign-built vessel in your scientific survey operations.
FACTS:
The Aries Marine Corporation operates the Panamanian-flag M/V
RAMBO. The operators of the M/V RAMBO wish to use the vessel in
various oceanographic research capacities. In support of its
request, Aries Marine states that the M/V RAMBO will be chartered by
Oceaneering Technologies to engage in seismic survey research of the
area surrounding San Clemente Island, California for the United
States Navy, Superintendent of Salvage. Aries Marine is requesting
comment as to whether this proposed operation involving the use of
remotely operated vehicles to assist in the surveying and mapping of
the area would violate United States coastwise laws. All crew
personnel will be licensed or documented by the United States Coast
Guard and no paid cargo will be carried aboard the vessel at any
time. The equipment used for the survey will be loaded at Port
Hueneme, California and returned there upon completion of the
survey.
ISSUE:
Whether a non-coastwise-qualified vessel may engage in seismic
survey research in U.S. waters.
LAW AND ANALYSIS:
The Act of June 19, 1886, as amended (24 Stat. 81; 46 U.S.C.
app. 289, sometimes called the coastwise passenger law), provides
that:
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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.
Customs has consistently interpreted this prohibition to apply
to all vessels except United States-built, owned, and properly
documented vessels (see, 46 U.S.C. 12106, 12110; 46 U.S.C. app. 883;
19 C.F.R. 4.80).
The coastwise law pertaining to the transportation of
merchandise, as amended (41 U.S.C. app. 883, often called the Jones
Act), provides that:
No merchandise, including merchandise owned by
the United States Government . . . shall be
transported by water, or by land and water . .
. 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 the 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, three 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 C.F.R. 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 amendment of section 883 by the Act of
June 7, 1988 (Public Law 100-329; 102 Stat. 588).
In its interpretation of the coastwise laws with regard to the
issue under consideration, Customs has long held that the use of a
vessel solely engaged in oceanographic research is not considered a
use in the coastwise trade (see, Headquarters Ruling Letter 110399,
August 23, 1989). 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 to, from,
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. Further, 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
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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.
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 Oceanographic Research Vessel Act), as
amended, section 3 (46 U.S.C. app. 443) which provides that “[a]n
oceanographic research vessel shall not be deemed to be engaged in
trade or commerce.” In defining the term “oceanographic research
vessel,” this Act defines oceanographic 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)).
Applying the principles previously set forth, vessels
exclusively engaged in surveying research present no violation of
the coastwise laws pursuant to 46 U.S.C. app. 441(1). While the
list of activities which constitute “oceanographic research”
contained in 46 U.S.C. app. 441(1) is not a complete list, it
expressly provides that seismic surveying does not constitute trade
or commerce.
HOLDING:
In accordance with the Law and Analysis section of this ruling,
the use of a non-coastwise-qualified vessel to engage in surveying
research is permissible under the coastwise laws.
Sincerely,
Arthur P. Schifflin
Chief