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Posted with the permission of LexisNexis from Benedict’s Maritime Bulletin. Copyright 2009 LexisNexis, a division of Reed Elsevier Inc. All rights reserved.

The development of mineral resources in the Gulf of Mexico has always tested the limits of U.S. cabotage law, particularly the Jones Act coastwise trade law. Rapid evolution of methods and new technologies, combined with the potential for significant penalties under the Jones Act, have led to the common practice of operators writing to the Carriers Branch of U.S. Customs and Border Protection (“CBP” or “Customs”) for advance ruling letters to approve the proposed activity. New actions by CBP indicate that operators’ reliance upon these rulings may have been misplaced.
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