August 15, 2007 CBP Bulletin Notice on Application of the Coastwise Laws to OCS
In the August 15, 2007 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 41, No. 34), CBP published a notice proposing to modify a ruling as follows:
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Proposed modification of ruling. CBP is proposing to modify a ruling on the application of the coastwise laws to vessels that are moored to facilities over the Outer Continental Shelf (OCS).
CBP states that any party who has received an interpretive ruling or decision (i.e., ruling letter, internal advice memorandum or decision or protest review decision) subject to this notice, should advise CBP by September 14, 2007, the date that written comments on the proposed ruling are due.
In addition, CBP states that this notice covers any rulings on the subject that may exist but have not been specifically identified.
Application of the coastwise laws to Vessels that are moored to facilities over the OCS. The pertinent facts are as follows: two foreign-flag cargo barges will transport pipe laying equipment to and from a foreign-flag heavy lift and pipe laying semi-submersible ("S-7000"). The S-7000 will be held in place using dynamic positioning during the transfer and the two barges will be moored directly to the S-7000 during the transfer activity. Neither the S-7000 nor the barges will be attached to the seabed. In one scenario, SF-7000 would be connected by gangplank to facility moored to the OCS.
The Jones Act provides in part that no merchandise shall be transported between points in the U.S. embraced within the coastwise laws, (emphasis added), either directly or via a foreign port, or for any part of the transportation, in any vessel other than one that is coastwise-qualified (i.e., U.S. built, owned and documented).
CBP is proposing to issue HQ H010211 to modify HQ 114670 in order to reflect that the coastwise laws do not apply to vessels that are merely connected to moored facilities by gangway or gangplank over the OCS. The rest of HQ 114670 is viewed as correct, and remains unchanged.
CBP proposes this modification in order to be consistent with CBP decisions which interpret the Outer Continental Shelf Lands Act (OCSLA). Citing numerous rulings, CBP notes that with respect to dynamically positioned vessels, CBP has long-held that the lack of any permanent or temporary attachment to the seabed operates to exclude such vessels operating over the OCS from becoming coastwise points pursuant to the OCSLA. (See Bulletin for ruling numbers and details.)
August 15, 2007 CBP Bulletin (Vol. 41, No. 34) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2007/