Jan. 18 CBP Bulletin Proposes to Revoke or Modify Rulings on Jones Act
In the Jan. 18 issue of the CBP Customs Bulletin (Vol. 51, No. 3) (here), CBP published notices that propose to revoke or modify rulings and similar treatment on the application of Jones Act coastwise laws to certain merchandise and vessel equipment that are transported between coastwise points. The Jones Act limits activities by foreign-flagged vessels around the U.S. CBP also posted four related rulings (here) that aren't available on CBP's ruling database.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Comments on Proposals Due Feb. 17
CBP said consideration will be given to any written comments received by Feb. 17 before taking this action. In addition, any party who has received a ruling or decision on the merchandise that is subject to the proposed revocations or modifications, or any party involved with a substantially identical transaction, should advise CBP by the date that written comments on the proposed ruling are due. (An importer's failure to advise CBP of such rulings, decisions or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agents for importations subsequent to the effective date of the final decision in this notice.)
Proposals
CBP is proposing to revoke or modify the rulings below, and any rulings on these products that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Jones Act Applicability
| Issues: (1) Whether the repair, installation, and servicing activities of a vessel constitute a violation of the Jones Act. (2) Whether a foreign-made vessel’s transportation of pipeline repair material; anodes; pipeline connectors; wellhead equipment, valves, and valve guards; damaged pipeline; and platform repair material from a U.S. point to another point within U.S. waters and/or those on the Outer Continental Shelf that are coastwise points pursuant to the OCSLA constitutes a violation of the Jones Act. |
| Current: (1) Various types of repair and installation work do not constitute an engagement in coastwise trade. (2) The transportation of wellhead equipment, valves and valve guards from a U.S. point to a wellhead assembly that is a coastwise point pursuant to the OCSLA would not be prohibited by the coastwise laws if such wellhead equipment, valves, and valve guards are of de minimis value or necessary to accomplish unforeseen repairs or adjustments and are usually carried aboard the work barge as supplies |
| Proposed: (1) Various types of repair and installation work do not constitute an engagement in coastwise trade, but for a different rationale. (2) A foreign-made vessel’s transportation of pipeline repair material; anodes; pipeline connectors; wellhead equipment, valves, and valve guards; damaged pipeline; and platform repair material from a U.S. point to points within U.S. waters and/or those on the Outer Continental Shelf that are coastwise points pursuant to the OCSLA constitutes a violation of the Jones Act |
| Reason: (1) There's no coastwise law that prohibits installation or repair work by foreign-built vessels accomplished separate and apart from any transportation done by such vessels pursuant to these activities. (2) The value of the merchandise is irrelevant to a determination that a coastwise transportation of merchandise has taken place and is contrary to the plain language of the statutory definition of merchandise which includes valueless material. The law does not condition the transportation of merchandise upon whether the activity in which the merchandise is being used is foreseeable, CBP said. Therefore, the transportation of wellhead equipment, valves and valve guards from a U.S. point to a wellhead assembly that is a coastwise point pursuant to the OCSLA would violate the Jones Act. |
| Proposed for revocation: HQ 105644 (1982), HQ 110402 (1989), HQ 111889 (1992), HQ 112218 (1992), HQ 113841 (1997), HQ 114305 (1998), HQ 114435 (1998), HQ 115333 (2001), HQ 115487 (2001), HQ 115938 (2003), HQ H004242 (2006) |
| Proposed for Modification: HQ 111892 (1991), HQ 115381 (2001), HQ 116078 (2004), HQ H029417 (2008), HQ H032757 (2008) |
| Proposed new ruling: HQ H082215 |