New Orleans, LA – The Offshore Marine Service Association (OMSA) applauds the newly introduced Close Agency Loopholes to the Jones Act sponsored by Congressman John Garamendi to end unlawful maritime practices that disadvantage American workers. The bill will restore actionable enforcement of the Jones Act and allow American mariners, vessels, and shipbuilders a fair chance to compete for U.S. jobs.
“For nearly 50 years, incorrect interpretations have created harmful and dishonest loopholes that force U.S. mariners and vessels to compete against foreign counterparts that have lesser crewing, tax, regulatory compliance, and insurance costs,” said Aaron Smith, President of the Offshore Marine Service Association. “This comprehensive bill would permanently eliminate these loopholes and uphold the true intentions of the Jones Act.”
The newly introduced legislation would also improve transparency surrounding how the U.S. Customs and Border Protection (CBP) administers the Jones Act in part by allowing U.S. vessel operators the opportunity to appeal CBP rulings—an opportunity currently only afforded to foreign vessel owners. Additionally, the legislation would require CBP to disclose Jones Act investigations and penalties and require foreign vessels allegedly operating under Jones Act exemptions to clearly communicate their purported qualifications for review.
“Big Oil, and increasingly Big Wind, have actively called for and exploited these loopholes to utilize cheap foreign labor at the expense of hardworking, capable Americans. The result has been less opportunity for skilled American mariners and shipyard workers and greater profit margins for foreign companies and foreign investors,” continued Smith.
In addition to providing transparency into the penalty process, the Close Agency Loopholes to the Jones Act requires CBP to issue statutory penalties for Jones Act violations. The Jones Act clearly specifies a penalty for breaking the law: the cost of the merchandise in question or the cost of the transportation, whichever is higher. Yet time and time again CBP has failed to follow this statute, instead mitigating up to 90 percent of fines for foreign vessels, enabling them to continue to work U.S. jobs in American waters.
“How CBP currently administers the Jones Act is dangerous and wrong,” added Smith. “We applaud Congressman Garamendi for taking steps to reverse these wrongs and hope his Congressional colleagues will join him in standing up for what is right.”
The Close Agency Loopholes to the Jones Act along with the previously introduced American Offshore Worker Fairness Act can work together to accelerate the growth of the U.S. maritime industry while supporting national, homeland, and economic security now and into the future.”
About Offshore Marine Service Association (OMSA)
The Offshore Marine Service Association OMSA is the leading association of and spokesman and advocate for the offshore marine transportation service industry in the United States. The association represents 120-member companies and their 12,000 U.S. employees based throughout the U.S. For more information, please visit www.offshoremarine.org.