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

1. US VESSEL ENTRY /
CLEARANCE
REQUIREMENTS
Reporting Requirements For Vessels operating on the US OCS

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. 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.
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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. 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. 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.
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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.
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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.
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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)
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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.
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