H323382

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H323382 June 10, 2022 OT:RR:BSTC:CCR H323382 SMS Davis R. Maass Alley, Maass, Rogers & Lindsay, P.A. 340 Royal Poinciana Way, Suite 321 P.O. Box 431 Palm Beach, FL 33480-0431 RE: Coastwise Transportation; Oceanographic Research; 46 U.S.C. §§ 55102 and 55103 Dear Mr. Maass: This is in response to your January 25, 2022, letter in which you request a ruling on behalf of [ ], (“the Company”) determining if a non-coastwise qualified vessel may be used to conduct certain oceanographic research expeditions without violating 46 U.S.C. §§ 55102 and 55103. Counsel has requested confidential treatment be accorded to certain information submitted in connection with this ruling request. In consideration of the request and sufficient justification presented pursuant to 19 C.F.R. § 177.2(b)(7), this office will not identify the requesting party nor any of the business confidential information provided to U.S. Customs and Border Protection (“CBP”). Our decision follows. FACTS: The Company owns a non-coastwise qualified, Marshall Islands-flagged, 54-meter motor yacht (“the Vessel”). The Vessel was built in Netherlands and has never been imported into the United States. The Company proposes to make the Vessel available, at no charge, to Bimini Biological Field Station Foundation, Inc., a Florida nonprofit corporation (“BBFS”) to conduct oceanographic research expeditions and voyages in and around the Florida Keys, in Monroe County, Florida. Specifically, BBFS will conduct shark and ray surveys, including collecting samples and tagging certain species. Counsel also provided several federal and state permit approvals, to conduct the subject research. The research team of four to six people intends to sleep on board the Vessel, to have ready access to areas that have not been extensively surveyed before. The Company also requests to invite guests, which are explained to be “the beneficial owner and members of his immediate family” to witness the research, who “would not be actively involved” in the research. The supplies on board the Vessel would consist of research equipment, including fishing gear, tags (including electronic tags), data-collection supplies for blood and muscle, and a centrifuge, in addition to the “usual provisions and consumables.” Lastly, Counsel explains the Vessel would dock, load, and unload research equipment in U.S. waters. “The total time from loading to unloading, including research activities, would be about three weeks.” Lastly, the Company does not intend to import the Vessel into the Commerce of the United States, nonetheless Counsel believes the applicable Harmonized Tariff Schedule of the United States (“HTSUS”) classification number of the Vessel would be 8903.33.00. Based on the above activities, you request confirmation that the proposed Vessel use is not dutiable, and that it does not constitute coastwise trade. ISSUES: Whether the proposed operation constitutes an engagement in coastwise trade for purposes of 46 U.S.C. §§ 55102 and 55103. Whether the proposed use of the vessel in U.S. coastal waters for oceanographic research may be afforded duty-free treatment. LAW AND ANALYSIS: Whether the proposed operation constitutes an engagement in coastwise trade for purposes of 46 U.S.C. §§ 55102 and 55103. 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. Such a vessel, after it has obtained a coastwise endorsement from the U.S. Coast Guard, is said to be “coastwise qualified.” Specifically, pursuant to 46 U.S.C. § 55102 (“the Jones Act”), a vessel may not provide any part of the transportation of merchandise by water, or by land and water, between points in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel has a coastwise endorsement. The CBP regulations promulgated under the authority of 46 U.S.C. § 55102(a), provide that “[a] coastwise transportation of merchandise takes place. . . when merchandise laden at a point embraced within the coastwise laws (“coastwise point”) is unladen at another coastwise point, regardless of the origin or ultimate destination of the merchandise.” The coastwise laws generally apply to points in the territorial sea, which is defined as the belt, three nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline. Pursuant to 46 U.S.C. § 55102(a), “[m]erchandise, includes (1) merchandise owned by the United States Government, a State, or a subdivision of a State; and (2) valueless material.” As such, any cargo, regardless of its value or ownership, would be considered merchandise for the purpose of 46 U.S.C. § 55102.” Similarly, the coastwise law applicable to the carriage of passengers, the Passenger Vessel Services Act (“PVSA”), found at 46 U.S.C. § 55103, provides: Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not 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 wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement. The CBP regulations, promulgated under the authority of 46 U.S.C. § 55103, provide, “[a] passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of the vessel, her navigation, ownership, or business.” The Oceanographic Research Vessel Act, as amended, and codified at 46 U.S.C. § 2101 in conjunction with 46 U.S.C. § 50503, makes an exception to allow non-coastwise qualified vessels to engage in certain activities as an “oceanographic research vessel.” Specifically, 46 U.S.C. § 2101, defines an “oceanographic research vessel” as: a vessel that the Secretary finds is being employed only in instruction in oceanography or limnology, or both, or only in oceanographic or limnological research, including studies about the sea such as seismic, gravity meter, and magnetic exploration and other marine geophysical or geological surveys, atmospheric research, and biological research. Moreover, 46 U.S.C. § 50503, provides “[a]n oceanographic research vessel (as defined in section 2101 of this title) is deemed not to be engaged in trade or commerce.” Thus, if the proposed Vessel activity as performed by BBFS is employed for oceanographic research, it will not violate the coastwise laws found under 46 U.S.C. §§ 55102 and 55103. Counsel explains that a research team, immediate family of the beneficial owner, along with research materials and necessary provisions will be aboard the Vessel during the various voyages and expeditions. Thus, we must determine if the merchandise and persons onboard the Vessel are exempted from the above-described coastwise laws. CBP has held that the use of a vessel to engage in oceanographic research is not a use in the coastwise trade. Recently, in Headquarters Ruling (“HQ”) H287538, dated July 20, 2017, a vessel’s proposed use was for biological, physical, chemical, and marine geophysical oceanographic research expeditions and interdisciplinary ocean-based research projects, including, water sampling, net tows, collection of biological samples from the seafloor, and the taking of various measurements. The vessel would also transport faculty, researchers, and students from the University of Washington’s School of Oceanography, as well as scientists and researchers from

Whether the proposed operation constitutes an engagement in coastwise trade for purposes of 46 U.S.C. §§ 55102 and 55103.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. Such a vessel, after it has obtained a coastwise endorsement from the U.S. Coast Guard, is said to be “coastwise qualified.” Specifically, pursuant to 46 U.S.C. § 55102 (“the Jones Act”), a vessel may not provide any part of the transportation of merchandise by water, or by land and water, between points in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel has a coastwise endorsement. The CBP regulations promulgated under the authority of 46 U.S.C. § 55102(a), provide that “[a] coastwise transportation of merchandise takes place. . . when merchandise laden at a point embraced within the coastwise laws (“coastwise point”) is unladen at another coastwise point, regardless of the origin or ultimate destination of the merchandise.” The coastwise laws generally apply to points in the territorial sea, which is defined as the belt, three nautical miles wide, seaward of the territorial sea baseline, and to points located in internal waters, landward of the territorial sea baseline. Pursuant to 46 U.S.C. § 55102(a), “[m]erchandise, includes (1) merchandise owned by the United States Government, a State, or a subdivision of a State; and (2) valueless material.” As such, any cargo, regardless of its value or ownership, would be considered merchandise for the purpose of 46 U.S.C. § 55102.”Similarly, the coastwise law applicable to the carriage of passengers, the Passenger Vessel Services Act (“PVSA”), found at 46 U.S.C. § 55103, provides:Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may no