Coast Guard Receives Comments on How Public Companies Comply with Jones Act Citizenship Requirements

On November 3, 2011, the U.S. Coast Guard issued a public notice seeking comments and "information on the various mechanisms that publicly traded companies have chosen to employ in order to assure compliance with those citizenship requirements." U.S. coastwise laws, commonly referred to as the Jones Act, restrict the ownership and operation of vessels to qualified U.S. citizens. Following extension of the comment period, comments were due on April 2, 2012. A number of comments were submitted including from the Chamber of Shipping of America, The American Waterways Operators and the American Petroleum Institute collectively representing many Jones Act public companies. The Coast Guard did not indicate in its November 3 notice that it would take any action following receipt of the comments stating that "we are not presently developing a new or revised regulation on this subject."