1300 Pennsylvania Avenue, NW Washington, DC 20229 U.S. Customs and =.) Border Protection Commissioner May 14, 2021 i This is in response to your correspondence of May 11, 2021, wherein you requested a waiver of the Jones Acton behalf of you ic [I arse proposed coastwise transportation activity onboard several non-coastwise-qualified vessels. ‘Your client osed to transport an ‘on or about May 11-19, 2021, = = rae at -_ - tonal points in 2 United States, on or about May 18 through June 1, 2021. You state that [QJSMFs requesting this waiver “in order to offset shortages of fuel supplies in regions impacted by the shutdown of Colonial Pipeline and disruptions in refining capacity.” On May 12, 2021, Secretary Mayorkas issued a letter granting in part and denying in part your waiver request with respect to seven of the eight transactions. This letter addresses the remaining transportation contained in your request. involving the tensportton tobe loaded on or about May 14, 2021, and shipped on or about May 16, 2021, for discharge i | ‘June 1, 2021 with subsequent over-land transportation to pomts in] This part of the waiver request was denied in the May 12, 2021 letter, but the Department o} Homeland Security (DHS) indicated it would respond to you separately after further review. As you know, the Jones Aet, 46 U.S.C. § 55102, provides, in part, that no merchandise shall be transported between points in the United States embraced within the coastwise laws, either directly or via a foreign port, or for any part of the transportation, in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. The coastwise laws, including the Jones Act, generally apply to points in the tertitorial sea, which is defined as the belt, three nautical miles wide, seaward of the territorial sea baseline, and to points located in intemal waters, landward of the territorial sea baseline. The coastwise laws administered by U.S. Customs and Border Protection (CBP) can only be waived under the authority provided in 46 U.S.C. § 501. This statute provides in pertinent part: When the head of an agency responsible for the administration of the navigation or vessel-inspection laws considers it necessary in the interest of national defense, the individual, following a determination by the Maritime Administrator, acting in the Administrator's capacity as Director, National Shipping Authority, of the non- ility of qualified United States flag capacity 10 meet national defenseRequest Tones Act Waive Page 2 requirements, may waive compliance with those laws to the extent, in the manner, and on the tems the individual, in consultation with the Administrator, acting in that capacity, prescribes. See 46 U.S.C. § 501). We requested the views of the Department of Defense (DoD) and the Department of Energy (DOE) with respect to your waiver request and its national defense implications. DoD does not object to DHS granting the waiver at the request of another agency or if it determines a waiver to be necessary. In consultation with DOE, the present facts indicate that the Colonial Pipeline resumed operations on May 12, 2021. ‘This has significantly changed the longer-term outlook for the supply situation. In light of the fact that the vessel does not reach| ‘until June 1, 2021 this does not support national defense needs. In addition, a portion of the gasoline is to be transshipped through] which is part of Petroleum Administration for Defense District (PADD) 1A. PADD 1A 1s not affected by the current supply shortages, and this likewise would not be in support of national defense needs DHS has carefillly considered the above-described portion of your request for a waiver of the Jones Act and the information available to the Department. ‘The Secretary’s original denial remains in place, based upon his determination that a waiver of the Jones Act is not warranted in the interest of national defense with respect to the proposed transportation, Sincerely, Troy A. Miller Senior Official Performing the Duties of the Commissioner ce: Department of Defense | Maritime Administration |, Department of Energy