Coast Guard Issues Strict Jones Act New U.S. Build Determination

The Coast Guard issued a determination on April 14 on the issue of what constitutes "assembled entirely in the United States." By law, only vessels which, among other things, are "assembled entirely in the United States" may be considered U.S. built and participate in the U.S. coastwise or Jones Act trade. On April 14, the Coast Guard determined that the foreign installation of a foreign manufactured crane onto an otherwise U.S.-built vessel would violate the "assembled entirely in the United States" requirement and make the vessel foreign built. The Coast Guard noted that the installation of foreign manufactured thrusters/nozzles, dynamic positioning units and the crane on the vessel would not violate the "assembled entirely" requirement, as long as the items were installed on the vessel in the United States.