Significant Jones Act Changes Affecting Offshore Industries Go Into Effect

On December 11, 2019, U.S. Customs and Border Protection finalized changes to Jones Act interpretations which will go into effect for “merchandise” transported after February 17, 2020.  Because the Jones Act restricts certain offshore activities to qualified U.S.-flag vessels, it can have a significant bearing on both offshore oil and gas and offshore renewable project costs and timing.

The Jones Act restricts the transportation of “merchandise” between two “points in the United States” to qualified U.S.-flag vessels owned and operated by U.S. citizens absent an exception.  Similar laws apply to the transportation of “passengers” as well as dredging, fishing and towing in defined U.S. waters.  A “point in the United States” is any place in U.S. physical territory and can include any man-made object, such as a drill rig or turbine installation vessel, attached permanently or temporarily to the U.S. outer continental shelf for defined purposes.