U.S. Customs and Border Protection announced that it would withdraw a proposal to toughen restrictions on foreign vessels.

Maritime News

Proposal to Change Jones Act Withdrawn


Posted on Sep 25, 2009

In addition to protecting injured workers, the Jones Act also protects national security and the U.S. shipbuilding industry by allowing only American-made vessels to carry cargo between U.S. ports.  However, the law allows for exemptions in emergencies and in cases where no U.S. ships are available.  For example, after Hurricane Katrina, an exemption was made to allow foreign vessels to carry oil and natural gas.  
 
The U.S Customs and Border Patrol (CPB) has recently withdrawn its proposal that would have made major changes in the way the Jones Act applies to foreign ships working for the offshore oil industry.
 
The CPB had proposed a tougher interpretation of the laws determining what foreign vessels are exempt from the law and what materials foreign vessels may transport for the construction, maintenance, repair and inspection of offshore petroleum-related facilities.   The new proposal would have narrowed the definitions of what is necessary equipment. The CPB had allowed 90 days of review before the changes were made into law.  However, the petroleum industry requested more time. It was uncertain what effects this proposal would have on the oil industry. 
 
It is expected that the CPB will reintroduce the proposal once the effects of the change are better understood.
 
You can read more about the Jones Act here.

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