Passenger Vessel Services Act of 1886

The Passenger Vessel Services Act of 1886 (sometimes abbreviated to PVSA, Passenger Services Act, or PSA) is a piece of United States legislation which came into force in 1886 relating to cabotage. Essentially, it says:

No foreign vessels 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 (now $300) for each passenger so transported and landed.

Any vessel subject to the Merchant Marine Act of 1920 counts as a U.S. vessel. Under the Passenger Vessel Services Act of 1886 (46 U.S.C. § 55103), foreign-flagged vessels cannot transport passengers directly between U.S. ports. The handful of U.S.-flagged cruise ships in operation are registered in the U.S. to permit cruises between the Hawaiian Islands, or from the continental U.S. to Hawaii. The Passenger Vessel Services Act, however, does not prohibit foreign-flagged ships departing from and returning to the same U.S. port or foreign-flagged ships departing from a U.S. port, visiting a foreign port, and then continuing to a second U.S. port. However, in order to embark in a U.S. port and disembark in a second U.S. port, the vessel must visit a distant foreign port outside of North America (Central America, Bermuda. the Bahamas, and all of the Caribbean except Aruba, Bonaire, and Curaçao, count as part of North America). It does not prevent a ship from taking on passengers at a U.S. port and then returning them to another U.S. city by ground or air, or vice versa, as long as the cruise ship returns to its departing point without stopping (a "cruise to nowhere"), or stops in at least one foreign port.

In accordance with this law, Cruise lines that operate foreign-flagged vessels are fined $300 for each passenger who boarded such a vessel in one U.S. port and left the vessel at another port. The cruise lines typically pass this cost on the passengers who "jump the ship". Exemptions are available in the case of family emergencies etc.