Image (C) Architect of the Capitol
UNITED STATE Customs and also Border Protection (CBP) is going on with modifications in its analyses of the Jones Act that it initially recommended October 23. creating substantial problem in some locations of the maritime market and also creating a bipartisan team of participants of Congress to require activity by CBP moms and dad firm, the Department of Homeland Security,
CBP revealed the choice to wage the modifications in a notification in its Customs Bulletin Weekly of December 11, 2019
SPACE ROME DISCOURSE
Law company Blank Rome states the choice “will substantially alter how certain operations conducted by coastwise and non-coastwise vessels can be conducted offshore in the oil and gas and wind industries. The changes become effective on February 17, 2020 and, says Blank Rome, “stakeholders should examine this decision to determine how it will impact their operations.”
According to Blank Rome, “the notice clarifies CBP’s position on whether certain items constitute ‘vessel equipment,’ which is not ‘merchandise’ and may be transported by non-coastwise qualified vessels. The notice also contains a section clarifying that ‘lifting operations’ are not ‘transportation’ within the meaning of the Jones Act.”
In short, states Blank Rome, the notification “eliminates previous erroneous decisions that allowed non-coastwise qualified vessels to transport items that should have been considered merchandise and not ‘vessel equipment’ under the Jones Act. The Notice also returns CBP to the position that it held for decades that lifting operations may be conducted by non-coastwise qualified vessel.”
Read the remainder of the Blank Rome rundown HERE
CONGRESS MEMBERS REACT
The CBP choice has actually come in for substantial objection– consisting of a bipartisan team of greater than 50 participants of Congress that terminated off a letter December 16, to Chad Wolf, Acting Secretary, UNITED STATE Department of Homeland Security and also Mick Mulvaney, Acting White House Chief ofStaff
Among various other points, the letter states:
“While we praise CBP for trying to enhance enforcement of the Jones Act on the Outer Continental Shelf and also ultimately withdrawing and also customizing letter judgments that enable foreign-flagged vessels to unjustifiably deliver product within the united state, we are interested in considerable elements of CBP’s proposition. Specifically, we challenge the sections of the ‘interpretive guidance’ that produce non-statutory technicalities to the Jones Act and also negate the regulation of regulation. These elements will certainly weaken enforcement of the Jones Act, permitting the foreign-flagged vessels that trust them to proceed taking job from united state seafarers and also shipyard employees– done in united state waters, without paying united state tax obligations.
“Moreover, while the procedure set out in 19 U.S.C. 1625 is proper for the abrogation and also alteration of letter judgments, CBP does not have the authority to provide meanings that negate the regulation. The Jones Act plainly forbids international vessels from participating in any type of component of the transport of product in between united state factors. The obligation of changing the law to correctly stabilize united state nationwide safety with various other united state rate of interests resides Congress alone, and also no quantity of agency-issued ‘interpretive guidance’ or financial evaluation by the Administration can alter the splitting up of powers under theConstitution
“The Jones Act provides for our national, homeland, and economic security. It ensures that American workers in American shipyards build vessels that are manned by American mariners in U.S. waters. Foreign owned and manned vessels have unfairly undercut our domestic maritime industry with low wage maritime vessel and shipyard workers. They do not abide by laws applicable to U.S. ships and mariners and do not have our national security interests at heart. U.S. workers, mariners, and the entire domestic maritime industry have been waiting over a decade for the Jones Act to be properly enforced. Therefore, we strongly believe CBP should proceed with revoking the letter rulings issued in contravention of the law and ensure the remaining components of its proposal do not violate the Jones Act.”
OMSA DECLARATION
Aaron Smith, President and also CHIEF EXECUTIVE OFFICER of the Offshore Marine Services Association provided the complying with declaration
“On behalf of thousands of American mariners and shipyard workers, we are disappointed that the U.S. Customs and Border Protection (CBP) has decided to put America second by creating potential loopholes for foreign vessels and crews to unlawfully operate in American waters and take the jobs of American vessels and workers.
“We support the more than 50 bipartisan members of Congress who correctly asserted that only the U.S. Congress can amend the Jones Act. We will be closely scrutinizing CBP’s implementation of these legally dubious loopholes to ensure that CBP follows the law and requires all foreign-flagged vessels to request and receive letter rulings. If CBP will not enforce the Jones Act as enacted by Congress, then it is essential they at least provide transparent documentation of the use of these new loopholes.”
