H360021

HQ H360021 September 21, 2026 OT:RR:BSTC:CCR H360021 CBC CATEGORY: Carriers Stephen McGuire Subsea 7 (US) LLC 17220 Katy Freeway, Suite 100 Houston, Texas 77094 VIA EMAIL: stephen.mcguire@subsea7.com RE: Coastwise Transportation; Outer Continental Shelf; Wells; Pristine Seabed; 46 U.S.C. § 55102; 19 C.F.R. § 4.80b Dear Mr. McGuire: This is in response to your October 13, 2025, request for a ruling pursuant to 19 C.F.R. § 177.2 on behalf of Subsea 7 (US) LLC (“Subsea 7”) regarding whether the transportation of mooring components to pre-installed mooring piles located on the outer continental shelf 1 Our decision follows. (“OCS”), as described below, would violate the coastwise laws. FACTS: The following facts are from your ruling request. Subsea 7 will load twelve mooring lines onto a foreign-flag installation vessel (“FFIV”) at a U.S. port for transportation to the oil and gas lease block designated as [ ]. Each mooring line will con- sist of a subsea mooring connector (“SMC”), a bottom chain segment, a lower polyester rope segment, a connecting chain segment, an upper polyester rope segment, a tensioner connecting chain segment, an in-line mooring tensioner (“ILMT”), a tensioner adjustment chain segment, 1 You have asked this office for confidential treatment of specific information relating to the project site location. If this office receives a Freedom of Information Act request for your submission, CBP Regulations (See 19 C.F.R. § 177.2, et seq.) regarding the disclosure of business information provide that the submitter of business information will be advised of receipt of a request for such information whenever the business submitter has in good faith desig- nated the information as commercially or financially sensitive information. We accept your request for confidential treatment as a good faith request. and various rigging and ancillaries. The mooring line installation process is described as fol- lows: Once at the location on [ ] , the paying out of each mooring line will occur as follows: Subsea 7 will connect the SMC to the bottom chain while on board the FFIV. The SMC and the bottom chain will be paid out from FFIV chain lockers through the onboard lay system over the stern roller. Once the SMC and bottom chain are paid out, Subsea 7 will connect the lower polyester segment to the end of the bottom chain. Subsea 7 will continue to pay out the lower polyester segment over the FFIV’s stern roller. Following the paying out of the lower polyester, Subsea 7 will attach the upper polyester segment and continue lay out operations. Subsea 7 will continue to pay out the mooring line until it connects the SMC to the pre-installed mooring pile. Once the SMC is connected, the FFIV will pay out the mooring line along the pre-determined lay route. Subsea 7 will connect the tensioner connecting chain segment, ILMT, tensioner adjustment chain segment and related ancillaries to the upper polyester segment. Once the entire mooring line is assembled, it will be laid down along the pre-determined lay route and within the pre-determined lay toler- 2 ances required. No information was provided regarding whether the FFIV will be in contact with the sea- bed upon arrival at [ ], or whether seabed devices other than the pre-installed mooring piles have been installed at [ ]. We assume for the purposes of this request that the FFIV will not be in contact with the seabed and that no other seabed devices other than the pre-in- stalled mooring piles have been installed for natural resource exploration or development at [ ]. ISSUE: Whether the transportation of the mooring lines by a non-coastwise-qualified vessel as described above violates the Jones Act, 46 U.S.C. § 55102. LAW AND ANALYSIS: Generally, the coastwise laws prohibit the transportation of 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 certificate of documentation with a coastwise endorsement from the U.S. Coast Guard, is said to be “coastwise qualified.” 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 in- 3 In addition, Section 4(a)(1) of the Outer ternal waters, landward of the territorial sea baseline. 2 Request for Ruling Letter, dated Oct. 13, 2025, at pp. 1–2. 3 33 C.F.R. § 2.22(a)(2). 2 Continental Shelf Lands Act of 1953 (“OCSLA”), as amended, provides that the Constitution and laws and civil and political jurisdiction of the United States are extended to: (i) the subsoil and seabed of the outer Continental Shelf; (ii) all artificial islands on the outer Continental Shelf; (iii) installations and other devices permanently or temporar- ily attached to the seabed, which may be erected thereon for the purpose of exploring for, developing, or producing resources, in- cluding non-mineral energy resources; or (iv) any such installation or other device (other than a ship or vessel) for the purpose of transporting or transmitting such re- 4 sources. Section 203 of the OCSLA Amendments of 1978 (Pub. L. 95-372, § 203, 92 Stat. 629, 635) (1978 Amendments), amended section 4(a) of the OCSLA by substituting “and all installa- tions and other devices permanently or temporarily attached to the seabed” for “and fixed struc- tures.” The legislative history states the purpose of this change was to make it clear “that Federal law is to be applicable to all activities on all devices in contact with the seabed for exploration, development, and production.” Thus, Federal law was intended “to be applicable to activities on drilling ships, semisubmersible drilling rigs, and other watercraft, when they are connected to the seabed by drillstring, pipes, or other appurtenances, on the OCS for exploration, development, or 5 production purposes.” The coastwise law applicable to the transportation of merchandise, often referred to as 6 and provides in pertinent part: “the Jones Act,” is found at 46 U.S.C. § 55102, (b) REQUIREMENTS.—Except as otherwise provided in this chapter or chapter 121 of this title, 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— (1) is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and (2) 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 Jones Act only partially defines the term “merchandise,” setting forth that merchan- dise “includes … merchandise owned by the United States Government, a State, or a subdivision 7 CBP also defines the term “merchandise” in 19 U.S.C. § of a State” and “valueless material.” 1401(c) as “goods, wares, and chattels of every description, and includes merchandise the impor- tation of which is prohibited, and monetary instruments as defined in section 5312 of Title 31.” 4 43 U.S.C. § 1333(a)(1). 5 H.R. REP. NO. 95-590, at 128 (1978), as reprinted in 1978 U.S.C.C.A.N. 1450, 1534. 6 Formerly 46 U.S.C. App. § 883. See Pub. L. 109-304, 120 Stat. 1485, 1632 (Oct. 6, 2006). 7 See 46 U.S.C. § 55102(a). 3 Accordingly, it is our position that the mooring components, including the SMC, rope segments, chain segments, tensioner, tensioner adjustment chain segment, and various rigging and ancillar- ies, etc., constitute merchandise for Jones Act purposes. The Jones Act specifically prohibits the coastwise transportation of “merchandise” be- tween coastwise points by non-coastwise-qualified vessels. To determine if the proposed trans- portation occurs between coastwise points, we

Generally, the coastwise laws prohibit the transportation of 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 certificate of documentation with a coastwise endorsement from the U.S. Coast Guard, is said to be “coastwise qualified.” 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 in- 3 In addition, Section 4(a)(1) of the Outer ternal waters, landward of the territorial sea baseline. 2 Request for Ruling Letter, dated Oct. 13, 2025, at pp. 1–2. 3 33 C.F.R. § 2.22(a)(2). 2
Continental Shelf Lands Act of 1953 (“OCSLA”), as amended, provides that the Constitution and laws and civil and political jurisdiction of the United States are extended to: (i) the subsoil and seabed of the outer Continental Shelf; (ii) all artificial islands on the outer Continental Shelf; (iii) installations and other devices permanently or temporar- ily attached to the seabed, which may be erected thereon for the purpose of exploring for, developing, or producing resources, in- cluding non-mineral energy resources; or (iv) any such installation or other device (other than a ship or vessel) for the purpose of transporting or transmitting such re- 4 sources. Section 203 of the OCSLA Amendments of 1978 (Pub. L. 95-372, § 203, 92 Stat. 629, 635) (1978 Amendments), amended section 4(a) of the OCSLA by substituting “and all installa- tions and other devices permanently or temporarily attached to the seabed” for “and fixed struc- tures.” The legislative history states the purpose of this change was to make it clear “that Federal law is to be applicable to all activities on all devices in contact with the seabed for exploration, development, and production.” Thus, Federal law