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PESA Welcomes CBP’s Withdrawal of a Proposal Restricting Use of Non-Jones Act Vessels 

On May 10, U.S. Customs and Border Protection (CBP) withdrew its proposal (issued January 18, 2017) which would have restricted the use of non-Jones Act* vessels in performing a variety of functions (laying pipeline, well intervention, dive support, etc.) on the Outer Continental Shelf (OCS). PESA is part of a Joint Trade effort that opposed CBP’s action because it would have curtailed exploration and production and negatively impacted PESA member companies.

CBP used a Notice of Proposed Modification and Revocation (NPMR), rather than the standard rulemaking process, to expedite the proposed changes. CBP is currently evaluating moving forward with a formal rulemaking effort to achieve the objectives of the NPMR.

PESA continues to work with the Joint Trade coalition to oppose CBP’s action.

 

*Jones Act – restricts the transportation of “merchandise” in U.S. waters and the OCS to vessels built and registered in the U.S. and at least 75%-owned by U.S. citizens.