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US Customs Vessel Entry / Clearance Requirements

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Overview of US Customs vessel entrance and clearance procedures. Overview of penalties that can be assessed for failure to enter / clear vessels, manifest inbound merchandise, failure to make entry, failure to report foreign vessel repairs and penalties assessed for Jones Act Violations. US Customs and Border Protection. Port Fourchon. OCS Operations. Offshore Oil and Gas. Gulf Marine Contractors, Gulf-MC

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US Customs Vessel Entry / Clearance Requirements

  1. 1. US VESSEL ENTRY / CLEARANCE REQUIREMENTS Reporting Requirements For Vessels operating on the US OCS
  2. 2. DISCLAIMER  The information express in this blog is for general knowledge only and is not intended to be legal advice.  For a full understanding or explanation of anything seen below please consult with a licensed attorney.
  3. 3. CUSTOMS DEFINITIONS  Clearance – Approval to depart the United States to a foreign  port or place, outside the 3 miles of the U. S. coastline.  Entrance – Approval to enter the United States from a foreign port or place beyond 3 miles of the U. S. coastline.  Stacked – Not in production/drilling mode. In repair status or idle mode, with or without crew on board.  Free floating – When an American or foreign flag vessel is not attached to the outer continental shelf. 3
  4. 4. VESSELS REQUIRED TO ENTER  Any vessel from a foreign port or place;  Any foreign vessel from a domestic port;  Any vessel of the United States having merchandise on board which is being transported in-bond (not including bonded ship's stores or supplies), or foreign merchandise for which entry has not been made; or  Any vessel which has visited a hovering vessel as defined in 19 U.S.C. 1401(k), or has delivered or received merchandise or passengers while outside the territorial sea. Pursuant to 19 CFR 4.3 4
  5. 5. VESSELS REQUIRED TO CLEAR  All vessels departing for a foreign port or place;  All foreign vessels departing for another port or place in the United States;  All American vessels departing for another port or place in the United States that have merchandise on board that is being transported in- bond (not including bonded ship's stores or supplies), or foreign merchandise for which entry has not been made; and  All vessels departing for points outside the territorial sea to visit a hovering vessel or to receive merchandise or passengers while outside the territorial sea, as well as foreign vessels delivering merchandise or passengers while outside the territorial sea. Pursuant to 19 CFR 4.60 5
  6. 6. 19 U.S.C. 1436 FAILURE TO ENTER / CLEAR VESSELS  $5000 USD First Violation  $10000 Subsequent Violations  If merchandise is landed – penalty is equal to the value of goods.  Penalties are secured against the owners/operators International Carrier’s Bond Example: Foreign Mobile Offshore Drilling Unit (MODU) is warm stacked 10 miles off Louisiana. Rig owner sends a US Flagged supply vessel out to land / demobilize equipment. Supply Boat is not cleared from port or entered back into port. Equipment is discharged without being manifested or entered with CBP. Penalties can be assessed for failure to clear, failure to enter and failure to manifest inbound merchandise. Customs may also assess penalties equal to the value of goods landed. 6
  7. 7. PENALTIES: 19 U.S.C. 1584(A)(1) FAILURE TO MANIFEST INBOUND MERCHANDISE  Penalty equal to the lesser of $10,000 or the domestic value of the merchandise. Example: Foreign Flagged Dive Support Vessels transferring project equipment / waste to a US Flagged Supply Boat 200 miles offshore Louisiana. Equipment and waste is not manifested or entered with CBP upon Supply Vessels arrival to Port Fourchon. Penalty on the value of equipment is assessed. 7
  8. 8. 19 U.S.C. 1595A(B) PENALTIES FOR AIDING UNLAWFUL IMPORTATION.  Customs may assess penalties equal to the domestic value of any articles introduced or attempted to be introduced into the U.S. contrary to law.  Specific violations for which Customs issues section 1595a(b) penalties include:  19U.S.C. 1304 (improper country of origin marking)  19 U.S.C. 1448 (removal from Customs custody without authorization)  19 U.S.C. 1499 (delivery of merchandise without Customs examination)  U.S.C. 944 - Failure to meet container sealing requirements or failure to transmit container seal numbers. 8
  9. 9. 19 U.S.C. 1466 - FAILURE TO DECLARE FOREIGN EQUIPMENT AND VESSEL REPAIRS.  Owners or masters of US documented vessels that are engaged in foreign or coasting trade are liable for entry and payment of a 50% ad valorem duty on costs incurred in a foreign country for:  Equipment Purchased for the Vessel  Repair Parts of materials to be used connection with the vessel  Repair Expenses  Penalty can be up to 4x duty owned on the repairs / equipment. Example:  US OSV is transporting equipment to a project in Trinidad. OSV is damaged during offload in Trinidad and $80K in repairs are made by a Foreign Shipyard and paid for by the charterer. Repair works are not reported to CBP and discovered during a subsequent CBP Boarding. Penalty is assessed against the owner/operator @ 4x duty owned. ($160K in this case) 9
  10. 10. 46 U.S.C. APP 883 - COASTWISE TRADE (JONES ACT) VIOLATIONS  Section 46 U.S.C. App. 883 prohibits foreign flag vessels from transporting merchandise laden at a coastwise port to any other coastwise port (whether directly or via a foreign port).  Penalty is the value of the merchandised or the cost of transportation - whatever value is higher.  There is no limit to the value of section 833 penalties. 10
  11. 11. 21 Waterway Ave , Suite 319 The Woodlands, Texas 77024  +1 832 602 0373  operations@gulfmarinecontractors.com  www.gulfmarinecontractors.com  CONTACT US

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