On June 5th the US Maritime Industry is celebrating the 100th Anniversary of the Jones Act. The Jones Act is the foundation of the US domestic maritime industry and requires all waterborne cargo or "merchandise" moving from one American port to another be carried on a vessel that is crewed by American citizens (up to 25 percent of the unlicensed crew may be holders of a permanent resident document), built in the US, managed and owned by American citizens.
Senator Wesley L. Jones, who served as Washington's 8th U.S. Senator from 1909-1932, is the author of the Jones Act. The Act has served the Nation over the past 100 years by helping to ensure our domestic commerce moves freely, maintaining a maritime industrial base of shipyards and marine suppliers to serve industry and the military, and providing a cadre of skilled and experienced mariners and officers who are employed in times of peace along our rivers, waterways, and oceans and relied upon to support our military in times of conflict or distress.
Showing posts with label Jones Act. Show all posts
Showing posts with label Jones Act. Show all posts
Friday, June 5, 2020
Friday, May 12, 2017
Customs Withdraws Proposal to Revoke Jones Act Waivers
By Mark Edward Nero
US Customs and Border Protection announced on May 10 that it is withdrawing a January proposal to revoke waivers that have been previously granted to oil and gas companies.
The proposal, which was issued two days before Donald Trump’s inauguration as President, would have potentially been devastating for foreign-based oil and gas companies that move product in and around the United States.
The Jones Act, passed in 1920, prohibits foreign flagged vessels from transporting merchandise between points in the United States and mandates that vessels transporting such merchandise be owned and operated by American companies and be staffed by crews of Americans. Customs has provided waivers to the rule for about 40 years.
The oil and gas industry, for the most part, was pleased by the news.
“By rescinding the proposal CBP has decided not to impose potentially serious limitations to the industry’s ability to safely, effectively and economically operate,” said Erik Milito, director of upstream and industry operations for the American Petroleum Institute.
However, a group representing US companies operating offshore service vessels, the Offshore Marine Service Association, issued a statement calling Customs’ reversal deeply disappointing.
“This decision hurts American workers, vessel owners and US shipbuilders,” the association said in a statement. “We call on President Trump to take immediate action and correct these damaging rulings that have continued to put foreign companies first and American companies and workers last.”
Customs said that it has received over 3,000 comments about the proposal before it was pulled, with many in opposition to the possible waiver revocation.
US Customs and Border Protection announced on May 10 that it is withdrawing a January proposal to revoke waivers that have been previously granted to oil and gas companies.
The proposal, which was issued two days before Donald Trump’s inauguration as President, would have potentially been devastating for foreign-based oil and gas companies that move product in and around the United States.
The Jones Act, passed in 1920, prohibits foreign flagged vessels from transporting merchandise between points in the United States and mandates that vessels transporting such merchandise be owned and operated by American companies and be staffed by crews of Americans. Customs has provided waivers to the rule for about 40 years.
The oil and gas industry, for the most part, was pleased by the news.
“By rescinding the proposal CBP has decided not to impose potentially serious limitations to the industry’s ability to safely, effectively and economically operate,” said Erik Milito, director of upstream and industry operations for the American Petroleum Institute.
However, a group representing US companies operating offshore service vessels, the Offshore Marine Service Association, issued a statement calling Customs’ reversal deeply disappointing.
“This decision hurts American workers, vessel owners and US shipbuilders,” the association said in a statement. “We call on President Trump to take immediate action and correct these damaging rulings that have continued to put foreign companies first and American companies and workers last.”
Customs said that it has received over 3,000 comments about the proposal before it was pulled, with many in opposition to the possible waiver revocation.
Tuesday, April 11, 2017
Alaska Oil Company to Pay Record Jones Act Violation Fine
By Mark Edward Nero
Anchorage-based natural gas and oil production company Furie Operating Alaska LLC has agreed to pay a record $10 million to satisfy a civil penalty originally assessed against it by US Customs and Border Protection for violating the Jones Act, the Department of Justice has announced.
According to the acting US Attorney for the District of Alaska, Furie was penalized when it transported the Spartan 151 jack-up drill rig from the Gulf of Mexico to Alaska in 2011 using a foreign flagged vessel without acquiring a waiver of the Jones Act from the Secretary of Homeland Security.
The settlement, which was announced April 4, resolves a civil lawsuit filed by Furie in 2012 challenging the assessment of the civil penalty.
The Jones Act, passed in 1920, prohibits a foreign vessel from transporting merchandise between points in the United States. A violation may result in the assessment of a civil penalty equal to the value of the merchandise. Waivers can be obtained from the Secretary of the Department of Homeland Security in limited circumstances, specifically when it is in the interest of national defense, following a determination that there is no US vessel available to engage in the transport.
“Resolution of this case demonstrates that the Jones Act will be actively enforced and that an intentional violation will not be rewarded,” the Department of Justice said in a statement.
Anchorage-based natural gas and oil production company Furie Operating Alaska LLC has agreed to pay a record $10 million to satisfy a civil penalty originally assessed against it by US Customs and Border Protection for violating the Jones Act, the Department of Justice has announced.
According to the acting US Attorney for the District of Alaska, Furie was penalized when it transported the Spartan 151 jack-up drill rig from the Gulf of Mexico to Alaska in 2011 using a foreign flagged vessel without acquiring a waiver of the Jones Act from the Secretary of Homeland Security.
The settlement, which was announced April 4, resolves a civil lawsuit filed by Furie in 2012 challenging the assessment of the civil penalty.
The Jones Act, passed in 1920, prohibits a foreign vessel from transporting merchandise between points in the United States. A violation may result in the assessment of a civil penalty equal to the value of the merchandise. Waivers can be obtained from the Secretary of the Department of Homeland Security in limited circumstances, specifically when it is in the interest of national defense, following a determination that there is no US vessel available to engage in the transport.
“Resolution of this case demonstrates that the Jones Act will be actively enforced and that an intentional violation will not be rewarded,” the Department of Justice said in a statement.
Tuesday, July 26, 2016
Customs Opening Jones Act Enforcement Office
By Mark Edward Nero
The US Customs and Border Protection’s Office of Field Operations has announced the creation of the National Jones Act Division of Enforcement (JADE) in order to, according to Customs, present a uniformed approach on issues involving the Jones Act.
The Jones Act requires that all goods transported by water between US ports be carried on US-flag ships, constructed in the United States, owned by US citizens, and crewed by U.S. citizens and permanent US residents.
The mission of JADE, Customs said July 15, will be to assist Customs & Border Protection, as well as industry partners, regarding issues concerning coastwise trade, with the goal of being a clearinghouse for all coastwise trade issues.
All formal ruling requests will continue to be forwarded to Regulations and Rulings, Office of Trade. JADE, which will be located within the New Orleans field office, will be staffed by a team of subject matter experts to assist industry partners with questions and concerns on issues involving coastwise trade, according to Customs.
JADE will also work in partnership with industry stakeholders in the enforcement of the Jones Act, along with all other coastwise trade laws. As an advocate for coastwise trade, the Jones Act Division of Enforcement will also be available for outreach presentations to industry partners on the subject of coastwise trade.
Those with questions or concerns regarding coastwise trade issues can contact the Division of Enforcement via email at jonesact@cbp.dhs.gov.
The US Customs and Border Protection’s Office of Field Operations has announced the creation of the National Jones Act Division of Enforcement (JADE) in order to, according to Customs, present a uniformed approach on issues involving the Jones Act.
The Jones Act requires that all goods transported by water between US ports be carried on US-flag ships, constructed in the United States, owned by US citizens, and crewed by U.S. citizens and permanent US residents.
The mission of JADE, Customs said July 15, will be to assist Customs & Border Protection, as well as industry partners, regarding issues concerning coastwise trade, with the goal of being a clearinghouse for all coastwise trade issues.
All formal ruling requests will continue to be forwarded to Regulations and Rulings, Office of Trade. JADE, which will be located within the New Orleans field office, will be staffed by a team of subject matter experts to assist industry partners with questions and concerns on issues involving coastwise trade, according to Customs.
JADE will also work in partnership with industry stakeholders in the enforcement of the Jones Act, along with all other coastwise trade laws. As an advocate for coastwise trade, the Jones Act Division of Enforcement will also be available for outreach presentations to industry partners on the subject of coastwise trade.
Those with questions or concerns regarding coastwise trade issues can contact the Division of Enforcement via email at jonesact@cbp.dhs.gov.
