WASHINGTON -- Customs and Border
Protection has proposed to clarify the rules on what
constitutes cabotage by foreign flag cruise lines, in a way that
could severely curtail cruise itineraries that use brief stops in
Mexico on U.S.-Hawaii cruises.
The CBP said it was
acting in response to concerns by the Maritime Administration that
NCL America's U.S.-flagged ships, and their U.S. crews, suffered
"economic hardship" in Hawaii 
because foreign-flagged
cruise lines were offering Hawaii cruises from the U.S. mainland
that made only token stops in Ensenada, Mexico.
The CBP said NCL
cited competition from the West Coast when it reduced its capacity
in Hawaii earlier this year, and the CBP said these itineraries
pose an "imminent threat" to the remaining U.S.-flag ships in
Hawaii.
In a notice of
"proposed interpretation" printed in the Federal Register, the CBP
said it is considering a requirement that such stops at foreign
points must be 48 hours and that port time in foreign ports must
represent 50% of the itinerary's total time in ports.
The move would
clarify the application of the Passenger Vessel Services Act, which
dates back to 1886 and prohibits foreign flag vessels from
transporting passengers between ports in the U.S.
Under the CBP's
clarified rules, a voyage is considered to be "solely to one or
more coastwise ports" even where it stops at a foreign port, unless
the stop at the foreign port is a "legitimate object of the
cruise." It said it regards brief stops, such as at Ensenada, as an
"evasion" of the law rather than a legitimate part of the
cruise.
Otherwise, the CBP
said it would "presume" that a stop at a foreign port is "not a
legitimate object" of the cruise unless it meets the 48-hour and
50% tests.
Although triggered
by Marad's concern over the lost tonnage and jobs under the U.S.
flag in Hawaii, the action could set a precedent for other
markets.
The CBP's proposal
is open for public comment through Dec. 21. Visit http://edocket.access.gpo.gov/2007/pdf/E7-22788.pdf to
view the document and post comments.
To
contact reporter Michael Milligan, send e-mail to [email protected].