U.S. Coast Guard National Vessel Documentation Center Issues Rebuild Determination with Newly Imposed “Cumulative Steelweight” Criteria

Jonathan K. Waldron and Sean T. Pribyl

Action Item: A recently published Rebuild Determination Letter issued by the National Vessel Documentation Center (“NVDC”) adds a significant new criteria in making Jones Act rebuild determinations by calling into question any previous rebuild activity in which a vessel may have been engaged. To ensure future compliance with coastwise trade requirements, industry stakeholders must now consider the additional “cumulative steelweight” test articulated in the recent determination when assessing the extent to which foreign work has been performed on a vessel’s hull or superstructure. Continue reading “U.S. Coast Guard National Vessel Documentation Center Issues Rebuild Determination with Newly Imposed “Cumulative Steelweight” Criteria”

Congress Moving Full Steam Ahead on Coast Guard and Related Maritime Bills

Mainbrace | June 2017 (No. 3)

Joan M. Bondareff and Jonathan K. Waldron

Despite the continuing turmoil in Washington, D.C., over the Russian investigation into the Trump campaign, Congress is continuing to carry out its regular business of funding the federal government and authorizing agency programs. This article reviews the status of Coast Guard and related legislation, the FY 2017 final budget, and the proposed budget for FY 2018. Movement on Coast Guard, MARAD, and FMC Bills Both the Senate Commerce, Science and Transportation Committee (“Commerce Committee”) and the House Transportation and Infrastructure Committee (“T&I Committee”) have reported out bills to authorize the programs and operations of the U.S. Coast Guard. As of this writing, the bills have to go to their respective floors for final votes and then be reconciled in conference, but we expect a favorable outcome before the August recess. The Senate reported its bill (S. 1129) on May 18, 2017. The “Coast Guard Authorization Act of 2017” reauthorizes the activities of the Coast Guard for fiscal years 2018 and 2019, and contains the following significant provisions: Continue reading “Congress Moving Full Steam Ahead on Coast Guard and Related Maritime Bills”

What’s Next? The U.S. Customs and Border Protection’s Withdrawal of Its Jones Act Proposal Relating to Equipment of a Vessel

Mainbrace | June 2017 (No. 3)

Jonathan K. Waldron, Matthew J. Thomas, and Patricia M. O’Neill

Background

In the last days of the Obama administration, U.S. Customs and Border Protection (“CBP”) proposed a major change in coastwise policy in its Proposed Modification and Revocation of Ruling Letters Relating to Customs Application of the Jones Act to the Transportation of Certain Merchandise and Equipment Between Coastwise Points (the “Notice”). The Notice, which was published in the CBP Customs Bulletin, proposed the modification of HQ 101925 (October 7, 1976), a seminal letter ruling upon which CBP and the industry have relied on for over 40 years when applying the Jones Act to vessels engaged in offshore construction, maintenance, and repair activities. (See CBP Customs Bulletin and Decisions, Vol. 51, No. 3, January 18, 2017, available here.)

Continue reading “What’s Next? The U.S. Customs and Border Protection’s Withdrawal of Its Jones Act Proposal Relating to Equipment of a Vessel”

U.S. Coast Guard Proposes Significant Updates to Marine Casualty Reporting Damage Thresholds

Mainbrace | March 2017 (No. 2)

Sean T. Pribyl and Jeanne M. Grasso

01n January 23, 2017, the U.S. Coast Guard published a Notice of Proposed Rulemaking (“NPRM”) that proposes to amend the monetary property damage threshold amounts for reporting a marine casualty and serious marine incident (“SMI”). ­Industry stakeholders should be aware of the significant changes in the NPRM, potentially easing the reporting burden.

Continue reading “U.S. Coast Guard Proposes Significant Updates to Marine Casualty Reporting Damage Thresholds”

U.S. Coast Guard Updates Marine Casualty Reporting Forms

Jeanne M. Grasso, Jonathan K. Waldron, and Dana S. Merkel

Action Item: The U.S. Coast Guard released an updated version of the CG-2692 forms for reports of marine casualties, commercial diving casualties, and outer continental shelf-related casualties. Vessel owners and operators are encouraged to review the new forms and ensure the new forms are used for future reports. Continue reading “U.S. Coast Guard Updates Marine Casualty Reporting Forms”

Final Rule on Inspection of Towing Vessels Published After 12 Years in the Making

Jeanne M. Grasso, Jonathan K. Waldron, Sean T. Pribyl, and Stefanos N. Roulakis

Action Item: The recently published Subchapter M Final Rule establishes a comprehensive safety system and inspection program for towing vessels.  Stakeholders involved in the operation or ownership of towing vessels should carefully evaluate the new measures, review safety procedures, and develop plans to comply with the timeframes mandated by the new regulations. Continue reading “Final Rule on Inspection of Towing Vessels Published After 12 Years in the Making”

Risk-Management Tools for Maritime Companies

Mainbrace | June 2016 (No. 3)

Compliance Review Program

Blank Rome Maritime has developed a flexible, fixed-fee Compliance Review Program to help maritime companies mitigate the escalating risks in the maritime regulatory environment. The program provides concrete, practical guidance tailored to your operations to strengthen your regulatory compliance systems and minimize the risk of your company becoming an enforcement statistic. To learn how the Compliance Review Program can help your company, please visit www.blankrome.com/  compliancereviewprogram.

Maritime Cybersecurity Review Program

Blank Rome provides a comprehensive solution for protecting your company’s property and reputation from the unprecedented cyber- security challenges present in today’s global digital economy. Our multidisciplinary team of leading cybersecurity and data privacy professionals advises clients on the potential consequences of cyber- security threats and how to implement comprehensive measures for mitigating cyber risks, prepare customized strategy and action plans, and provide ongoing support and maintenance to promote cybersecurity awareness. Blank Rome’s maritime cybersecurity team has the capability to address cybersecurity issues associated with both land-based systems and systems onboard ships, including the implementation of the BIMCO Guidelines on Cyber Security Onboard Ships. To learn how the Maritime Cybersecurity Review Program can help your company, please visit www.blankrome.com/ cybersecurity or contact Kate B. Belmont (KBelmont@BlankRome.com, 212.885.5075).

Trade Sanctions and Export Compliance Review Program

Blank Rome’s Trade Sanctions and Export Compliance Review Program ensures that companies in the maritime, transportation, offshore, and commodities fields do not fall afoul of U.S. trade law requirements. U.S. requirements for trading with Iran, Cuba, Russia, Syria, and other hotspots change rapidly, and U.S. limits on banking and financial services, and restrictions on exports of U.S. goods, software, and technology, impact our shipping and energy clients daily. Our team will review and update our clients’ internal policies and procedures for complying with these rules on a fixed-fee basis. When needed, our trade team brings extensive experience in compliance audits and planning, investigations and enforcement matters, and government relations, tailored to provide practical and businesslike solutions for shipping, trading, and energy clients worldwide. To learn how the Trade Sanctions and Export Compliance Review Program can help your company, please visit www.blankrome-maritime.com or contact Matthew J. Thomas (MThomas@BlankRome.com, 202.772.5971).

What You Need to Do Now to Prepare for the New SOLAS Verified Gross Mass Deadline

Mainbrace | June 2016 (No. 3)

Jonathan K. Waldron, Patricia M. O’neill, and Dana S. Merkel

As the July 1, 2016, effective date for the SOLAS Regulation VI/2 amendments quickly approaches, unanswered questions and difficulties complying with varied international and domestic implementations loom large. In an effort to provide guidance to the industry, the U.S. Coast Guard recently issued a Marine Safety Information Bulletin, dated April 28, 2016 (MSIB Number 009/16), declaring that existing U.S. laws and regulations for providing verified container weights are “equivalent” to the requirements under SOLAS Regulation VI/2. Continue reading “What You Need to Do Now to Prepare for the New SOLAS Verified Gross Mass Deadline”

SOLAS Verified Gross Mass (“VGM”) Countdown: Will You Be Ready On July 1, 2016?

Jeanne M. Grasso, Dana S. Merkel, and Jonathan K. Waldron

Action Item: With less than 30 days remaining before the July 1, 2016, effective date of the new International Convention for the Safety of Life at Sea (“SOLAS”) Regulation VI/2 amendments, the International Maritime Organization (“IMO”), Administrations, and industry continue to tackle unanswered compliance questions and concerns.

Below, we discuss the most recent guidance and developments from the U.S. Coast Guard, IMO, and industry organizations, as well as our assessment and views on enforcement, to assist stakeholders in preparing for the July 1 deadline, while taking into account the unique characteristics of various operations and ports. Continue reading “SOLAS Verified Gross Mass (“VGM”) Countdown: Will You Be Ready On July 1, 2016?”

The Well Control Final Rule Is Here, Finally

Jeanne M. Grasso, Jonathan K. Waldron, and Stefanos N. Roulakis

Action Item: The recently published Well Control Rule will require significant changes to Blow-Out Preventer (“BOP”) systems and well operations. Stakeholders in offshore oil and gas operations should carefully evaluate the new measures, review safety procedures, and develop plans to come into compliance within the time frames mandated by the regulations. Continue reading “The Well Control Final Rule Is Here, Finally”