Passenger Services Act

The Passenger Services Act is a piece of United States legislation which came into force in 1886 relating to cabotage. Essentially, it says:
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.
Any vessel subject to the Jones Act counts as a US vessel.
   
Some exceptions have been made to the requirement of the Passenger Services Act. For example, Canadian vessels may transport passengers between Rochester and Alexandria Bay, New York and between southern Alaska and U.S. ports until such time as a U.S. carrier enters the market. The law has had an interesting consequence with regard to the cruise ship industry within the State of Hawai‘i. Foreign-flagged cruise ships may carry passengers between ports in the Hawaiian Islands as long as no passenger permanently leaves the vessel at ports other than the origination port and the vessel makes at least one call at a foreign port. Norwegian Cruise Line (NCL) completes its cruise tours among several Hawaiian Island ports with a stop-over at Tabuaeran (Fanning Atoll) in the Line Islands (Republic of Kiribati).

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