Blog
Customs Issues Jones Act Fuel Blending Guidance
Blog
March 31, 2014
U.S. coastwise laws, commonly referred to as the “Jones Act,” restrict the transportation of merchandise between two U.S. points to qualified U.S.-flag vessels even if such cargo is transshipped in a foreign port. When, however, the merchandise is converted on foreign soil into a “new and different” product, then it can be transported to and from the United States in a foreign vessel. On March 6, 2014, Customs and Border Protection issued a ruling regarding whether gasoline components transported to the Bahamas from the United States could be blended there and be transported in a foreign vessel to and from the United States. CBP confirmed that blending can result in a “new and different” product so long as American Society for Testing Material (ASTM) grade changes, as it did with the gasoline blending components.
This entry has been created for information and planning purposes. It is not intended to be, nor should it be substituted for, legal advice, which turns on specific facts.