On October 23, 2019, U.S. Customs and Border Protection proposed substantial changes to its
interpretations of the Jones Act that will affect both the offshore
oil and gas and offshore wind industries. The Jones Act is a key
driver in how offshore structures are constructed and dismantled
and so its interpretation is critical to both operational planning
and cost analyses. Public comments are due on the proposed changes
by November 22, 2019.
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” can include any man-made object, such as a
drill rig, attached permanently or temporarily to the U.S. outer
continental shelf for defined purposes.
