In light of the fact that some vessels had to be re-routed as a result of Tuesday's terrorist attack, the US Customs Service has provided a waiver from Jones Act requirements for cargo that was diverted and unloaded and then reloaded onto a non-coastwise eligible vessel to get to its original port of destination.

The attached document provides a copy of the content of the Customs Service memorandum. Please note that this is not an open ended waiver of the Jones Act, but a limited one designed to be of assistance to the flow of commerce affected by Tuesday's disaster.

As information, the U.S. Customs memorandum covering this issue follows.

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U.S. Customs Service Memorandum

Date: September 12, 2001

To: All CMC Directors
All Port Directors

From: Director, International Trade Compliance Division
Office of Regulations and Rulings

Subject: Vessel Cargo and Passengers Diverted from Port of Destination due to Terrorist Attack

Customs has received inquiries regarding procedures where import shipments and passengers destined for ports in the United States are diverted to other U.S. ports because of the closure of ports by the U.S. Coast Guard due to the recent terrorist attack.

The underlying issue is the restriction in the passenger and merchandise coastwise laws, Title 46, United States Code Appendix 289 and 883, which respectively provide that no passengers or merchandise shall be transported between U.S. ports in a non-coastwise-qualified vessel (i.e., a vessel not U.S. built, owned and documented). In the cased now before Customs, the incoming vessels carrying passengers and merchandise destined to closed ports are diverting to other U.S. ports where such passengers will disembark and/or such merchandise will be unloaded. In the case of passengers disembarking at other than their U.S. port of embarkation, such vessels will be in violation of 46 U.S.C. App. 289. In those cases where merchandise will be unladed and subsequently reladed aboard a non-coastwise-qualified vessel and transported to the original port of destination at a later date, such vessels will be in violation of 46 U.S.C. App. 883 at such time as the merchandise is unladed in that port.

In view of the exigent circumstances causing the aforementioned violations, recognizing the strong need to reestablish the orderly flow of commerce and to ameliorate as far as possible the considerable financial loss to the U.S. shippers and importers, Customs is instructing its field officers that although the proposed movements would be in violation of the above cited coastwise laws, no penalties should be assessed against the carriers involved during such time as the U.S. ports where such violations would arise are closed.