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Based on a request of the Department of War, the Trump Administration announced a 60-day limited waiver of the Jones Act (46 U.S.C. § 55102) on March 17, 2026, in response to energy market volatility amid the ongoing U.S.-Israel war against Iran. According to the March 19&nbsp;<a href="https://content.govdelivery.com/bulletins/gd/USDHSCBP-40f1204?wgt_ref=USDHSCBP_WIDGET_2">bulletin</a>&nbsp;published by U.S. Customs and Border Protection (“CBP”), the waiver permits foreign-flag vessels to transport certain goods, including oil, natural gas, coal, and fertilizer (see full&nbsp;<a href="https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fcontent.govdelivery.com%2Fattachments%2FUSDHSCBP%2F2026%2F03%2F19%2Ffile_attachments%2F3589312%2FList%2520of%2520Potentially%2520Covered%2520Products%2520as%2520of%2520March%252018%25202026.xlsx&amp;wdOrigin=BROWSELINK">List of Potentially Covered Products as of March 18 2026</a>), between U.S. ports for the duration of the waiver period, which will expire on May 17, 2026, at 11:59 p.m. E.D.T.&nbsp;

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Background on the Jones Act

The Jones Act (formally known as the Merchant Marine Act of 1920) was enacted by Congress in 1920 as part of an effort to rebuild the U.S. shipping industry after World War I. At its core are regulations over coastwise trade, which require that any vessel transporting goods or passengers between U.S. ports must be built in the United States, 75 percent owned by U.S. citizens at every tier of ownership, and crewed by U.S. citizens with limited exceptions – effectively barring foreign-flag vessels from the U.S. domestic maritime trade. While the law has long been supported by domestic shipping companies and shipyards, labor unions, and national security advocates, it does in effect reduce the number of potential vessels available to move goods around the United States, to the ire of various consumer groups.&nbsp;

The Iran War and Energy Market Disruption

The waiver was issued amid severe disruption to the global energy markets following the outbreak of the U.S.-Israel war against Iran, which began on February 28, 2026. Tanker traffic through the Strait of Hormuz – a critical global chokepoint through which roughly 20 percent of the world’s oil normally passes – has been almost entirely halted, with Iran imposing a de facto blockade on commercial shipping. While a limited number of vessels have transited through the strait, others have been attacked and severely damaged as part of Iran’s blockade, with numerous seafarers killed in the attacks. These disruptions have caused global and U.S. oil prices to surge dramatically. (See our article discussing the broader impacts of the Iran war,&nbsp;<a href="/news-and-events/iran-war-and-international-shipping-navigating-disruption-and-legal-risk-international/" id="41275">here</a>.

White House press secretary Karoline Leavitt described the waiver as “another step to mitigate the short-term disruptions to the oil markets as the U.S. military continues meeting the objectives of Operation Epic Fury.”

Under 46 U.S.C. § 501, the requirements of the Jones Act may be waived under certain limited circumstances. There are two types of waivers – one that comes from the Secretary of Defense (now called the Secretary of War) (§ 501(a)) and one that comes from the head of a civilian agency ((§ 501(b)) – each of which have their own separate process and requirements. Jones Act waivers are rare, and in the past have typically been issued under § 501(b) in response to natural disasters, such as Hurricanes Maria and Harvey in 2017.&nbsp;

This waiver, however, was issued under 46 U.S.C. § 501(a). Under § 501(a), on request of the Secretary of Defense, the head of an agency responsible for the administration of the navigation or vessel-inspection laws&nbsp;shall&nbsp;waive compliance with those laws to the extent the Secretary considers necessary in the interest of national defense to address an immediate adverse effect on military operations.

Within 24 hours of making the request, the Secretary of Defense is required to submit to certain committees in Congress a written explanation of the circumstances requiring such a waiver in the interest of national defense, including a confirmation that there are insufficient qualified vessels to meet the needs of national defense without such a waiver. At this time, the official justification for the waiver, including the confirmation that there are insufficient Jones Act-qualified vessels to meet the national defense needs, has not been made public.&nbsp;

CBP Guidance – Implementation of the Jones Act Waiver

Per the CBP bulletin, any member of the trade community who intends to transport the covered cargo on a foreign-flag vessel during the waiver period, must notify CBP at&nbsp;<a href="mailto:jonesact@cbp.dhs.gov">jonesact@cbp.dhs.gov</a>&nbsp;with the following information:

Vessel name (including IMO number and flag);

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Commodity and relevant Harmonized Tariff Schedule (“HTS”) Code;

Ports and dates of departure and arrival (include CBP port code).

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Any foreign-flag vessel transporting cargo under the waiver remains subject to vessel and clearance requirements under 19 U.S.C. § 1434(a)(2) and 19 C.F.R. Part 4 and should use the Vessel Entrance and Clearance System (“VECS”) in the Automated Commercial Environment (“ACE”) to file a formal entry of the vessel.&nbsp;

Carriers engaging in transportation under the waiver must also provide a paper CBP Form 1302 (Inward Cargo Declaration) for all U.S. domestic cargo laden from and intended for a U.S. port of entry. For the paper CBP Form 1302s being used for this waiver only, parties should list the “Last Foreign Port Before U.S.” as the previous immediate U.S. port of departure and the “Foreign Port Where Cargo is Laden on Board” as the U.S. port of lading for the domestic cargo. In addition, the following statement should be included on the form: “Shipment described is a domestic shipment moving under the requirement of the Jones Act waiver issued March 17, 2026.”&nbsp;

Carriers may submit the Form 1302 by (i) uploading it into the Document Imaging System (“DIS”) in VECS, (ii) sending it via e-mail to both the port of loading and the port of discharge, or (iii) providing a physical copy to the local CBP port of loading and port of discharge.&nbsp;

In addition, in accordance with 46 U.S.C. § 501(c), no later than 10 days after the date of conclusion of the voyage of a foreign-flag vessel that is operated under this waiver, the owner or operator of the vessel and the individual requesting such waiver (if not the owner or operator of the vessel) shall submit to the Maritime Administrator at&nbsp;<a href="mailto:marad.milcargo@dot.gov">marad.milcargo@dot.gov</a>&nbsp;a report including the following information:

The name of the owner and operator of the vessel;

An explanation as to why the waiver was in the interest of national defense; and

Any other information the Maritime Administrator determines necessary.

Because the party requesting the waiver in this case was the Department of Defense, the U.S. Department of Transportation, Maritime Administration (“MARAD”) reporting requirement seems to fall solely on the vessel owner or operator. MARAD will publish such reported information online within 48 hours of receiving it.&nbsp;

Before proceeding with any transportation under the waiver, parties should be aware of the full scope and parameters of the waiver and should consider the following:

Covered Cargo –&nbsp;Parties should carefully review and confirm the cargo they intend to transport is included on the CBP&nbsp;<a href="https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fcontent.govdelivery.com%2Fattachments%2FUSDHSCBP%2F2026%2F03%2F19%2Ffile_attachments%2F3589312%2FList%2520of%2520Potentially%2520Covered%2520Products%2520as%2520of%2520March%252018%25202026.xlsx&amp;wdOrigin=BROWSELINK">list</a>&nbsp;of covered cargo.

Waiver Period&nbsp;– Parties should keep an eye on the waiver period (set to expire at 11:59 p.m. E.D.T. on May 17, 2026) and timing of cargo loading. Cargo must have been at sea when the waiver period began (a difference from prior waivers), or must be loaded prior to the expiration of the 60-day window. Importantly, as long as the cargo is loaded prior to the expiration of the window, it can be discharged at a U.S. port after the deadline.

Reporting Requirements&nbsp;– Parties should ensure that they are complying with the various documentation and reporting requirements discussed above and in greater detail in the CBP&nbsp;<a href="https://content.govdelivery.com/bulletins/gd/USDHSCBP-40f1204?wgt_ref=USDHSCBP_WIDGET_2">bulletin</a>. Parties should also keep detailed records of all transportation conducted under the waiver in case of any disputes or audits.&nbsp;

Crew Issues&nbsp;– Parties should be aware that the waiver&nbsp;does not&nbsp;affect the visa requirements otherwise applicable to foreign crew sailing in U.S. waters. Current regulations limit presence in the United States under a D-Visa to 29 days, meaning the vessel must call on a foreign port for this visa clock to reset. Even if a vessel sails in international waters between two points in the United States, the 29-day clock keeps ticking for the duration of the voyage, posing challenges for transits from the U.S. East Coast to Hawaii.&nbsp;

Potential Legal Challenges&nbsp;– Parties should also be mindful that there is a potential for legal challenges to the waiver by domestic interests. This waiver is longer in duration than many previous waivers and the official justification has not yet been published. Many Jones Act industry groups have already criticized the waiver and its intended purpose.&nbsp;

Taxation&nbsp;– Wholly domestic voyages by foreign flag vessels under the waiver may be subject to different tax treatment than voyages in the U.S.-foreign trade.&nbsp;Parties should evaluate any additional U.S. tax consequences from earning revenue in the domestic U.S. trade.

We will continue to monitor any developments, and our Blank Rome team is here to answer any questions you may have. For more information or assistance, please contact&nbsp;<a href="/people/keith-b-letourneau/" id="19332">Keith B. Letourneau</a>,&nbsp;<a href="/people/natalie-m-radabaugh/" id="18995">Natalie M. Radabaugh</a>,&nbsp;<a href="/people/g-evan-spencer/" id="18798">G. Evan Spencer</a>, or another member of Blank Rome’s&nbsp;<a href="/services-and-industries/maritime/" id="18488">Maritime</a>&nbsp;team.

Trump Administration Issues 60-Day Jones Act Waiver Amid the Iran War

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Trump Administration Issues 60-Day Jones Act Waiver Amid the Iran War

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