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U.S. Customs Withdraws Jones Act Reinterpretation

Jeanne Grasso, partner in Blank Rome's maritime group, was recently quoted in an article in Lloyd's List regarding the recent decision of the U.S. Customs and Border Protection (CBP) to withdraw a proposed change in its interpretation of the Jones Act that would have barred foreign ships from transporting specialist equipment for construction or modification of offshore installations in the U.S. Gulf of Mexico.

This proposed change was announced in July of this year after which CPB received numerous public comments on the proposal.

The revision could be published as soon as the beginning of October in the Customs Bulletin, and not the U.S. Federal Register, according to sources.

Jeanne Grasso, who represented two major industry associations that submitted responses to CBP, said the agency’s rethink appears to have resulted from the detail and extensiveness of the comments submitted.

“We are talking of changing 30 years of precedent,” Ms. Grasso said.

“The original proposal would have implemented substantive changes within 60 days, which would have been impractical to say the least. CBP has taken a step back, for a complete do-over.”

Ms. Grasso further stated that while the Federal Register would still be the most preferred forum for CBP to publish its revised policy, the substance or otherwise of the changes it now publishes would also dictate whether the agency faces legal challenges on the subject.

To read this article in its entirety, please click here.

"U.S. Customs Withdraws Jones Act Reinterpretation", by Rajesh Joshi first appeared September 21, 2009 in Lloyd's List.