U.S. authorities extend Jones Act comment period

The U.S. Customs and Border Protection has extended the comment period for its proposed modifications of the Jones Act, which could affect the international offshore vessel owners operating in the U.S.

The U.S. Customs and Border protection in mid-January issued a document in which it proposes to revise several rulings and amendments to the Jones Act, which prevents foreign-flagged ships from shipping merchandise within the U.S.

While the foreign-built and flagged ships have been prevented from transporting merchandise between the U.S. coastwise points, over the years some exceptions have been made for construction vessels working in the offshore oil and gas industry.

The foreign construction vessels have been allowed to carry aboard pipeline repair material; anodes; pipeline connectors; wellhead equipment, valves, and valve guards; damaged pipeline; and platform repair material. This was not seen as a Jones Act violation because the goods have been seen as a necessary equipment.

However, if the proposal is materialized, foreign-flagged vessels would not be able to carry any of the “items” listed above, and would be violating law if they did.

The deadline for comments had been February 17, but the U.S. authorities have allowed for two more months, with the deadline set to April 18, 2017.

“CBP believes that it is important to have as much public participation as possible in considering this proposal. Therefore, CBP has decided to allow additional time for the public to submit comments on the proposed actions. Accordingly, the comment period is extended to April 18, 2017. CBP is also seeking comments on whether a further extension of the comment period, beyond April 18, 2017, is warranted,“ CBP said.

Deep-water construction different from PSVs

The International Marine Contractors Association (IMCA) and their members with vessels active in US waters have welcomed comment deadline extension news.

Allen Leatt, IMCA’s Chief Executive said: “The additional 60 days will enable us to undertake very necessary research into the likely economic and technical impact of the proposed revocations. We understand the drive to protect US tonnage given the difficulties in the PSV market today, but the deep-water construction market represents a very different sector with very different vessels and technologies.

“It is a truly international market, as no single domestic market can support the heavy investments of these assets. Consequently, there is a real risk to damaging the whole Gulf of Mexico market as the unintended consequences do not seem to have been thought through. Our assessment will be published within the consultation/comment period.

“The CBP’s proposals were made in the final two days of the Obama Administration. The Trump Administration has called for a freeze pending a review of all regulatory initiatives; equally it is well known that President Trump is ambitious for the US to increase domestic oil and gas production. These proposals seem to run contrary to both objectives.”

Offshore Energy Today Staff