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Under the Jones Act, the activities of foreign-flagged water vessels transporting merchandise to or between US ports are restricted. This means that the CBP (which is short for U.S. Customs and Border Protection) prohibits foreign flagged ships and sea vessels from performing tasks which include cable-laying, pipe-laying, heavy-lift crane construction and installation, and diving support work. Since the 1950s, ships and vessels that carry merchandise between US ports and US OCS (Outer Continental Shelf) anchored vessels or platforms must be built in the US and owned by citizens. Just recently, the CBP has proposed new changes to the interpretations of the Jones Act. The planned modifications in the law include granting permission to foreign flagged ships to perform activities such as pipeline connector installations. The main reason for this change, according to CBP, is that pipeline connectors are not really incidental to pipe laying. In connection with this, the CBP also announced that it is limiting its interpretation of vessel equipment to exclude goods and machinery that are not important or needed to operate, navigate, or maintain the vessel or ship itself. It is worth noting that vessel equipment is actually exempted from this particular law or act. The changes that the CBP are proposing are actually attracting both opposition and support. The members of the International Marine Contractors Association (IMCA) have been vocal of its opposition to the proposed modifications on the interpretation of Jones Act. According to IMCA, they believe that the changes would have grave impact on the activities that are important to the offshore gas and oil industry of the United States. The IMCA claims that the modifications can result in the closing down of most American activities in the Gulf of Mexico, particularly in the deep waters, for a certain period of time. IMCA believes that coastline trade vessels in the Gulf of Mexico that have trained staff and the capacity to perform activities that are presently done by foreign-flagged ships and vessels are limited in number. The IMCA also believes that the proposal may also threaten the security of the country. On the other hand, the Offshore Marine Service Association (OMSA) believes that the CBP proposed modifications to the Jones Act would actually protect the seafarers or mariners of the country. According to OMSA, the changes would mean that foreign-owned vessels will be allowed to install equipment used in oilfields but only boats that are US-owned will be allowed to carry or transport equipment offshore. If you have additional questions regarding changes to the Jones Act, speak to a Jones Act attorney at SMSH by calling 1-800-282-2122. Their maritime attorneys have handled hundreds of maritime law cases.
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