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Vujasinovic & Beckcom Blog

Jones Act

9/21/2009
Brian Beckcom
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Proposed Jones Act changes being scrapped

The U.S. Customs and Border Protection (CBP) is withdrawing proposed changes to the Jones Act.

The CBP announced in July plans to significantly amend interpretation of rules for vessels transporting offshore oil and gas equipment. This would have revoked current Jones Act exemptions in areas including diving support work, cable and pipe-laying.

The proposal left the U.S. offshore sector scrambling to replace foreign crews with Americans, had the changes become implemented.

However, citing "several substantive comments" among almost 150 received during a public comment period that recently expired, CBP decided not to proceed with the changes.

The agency says it will produce a new proposal on offshore changes to the Jones Act "in the near future."

Presently, over 80-percent of this work is carried out on non U.S. flagged vessels.

According to the International Marine Carriers Association, at least five years would be required to provide an adequate number of U.S. vessels to meet the new CBP standards.

Source: Daily Fairplay News

Labels: Customs and Border Patrol Jones Act changes Offshore Industry