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What is the Jones Act?
The Jones Act, otherwise called the Merchant Marine Act of 1920, regulates maritime commerce across the United States. According to this federal law, citizens and permanent residents of the US are the only ones that can engage in merchant marine activities in the U.S., such as entering US trading lanes.
When does the Jones Act Apply?
As part of the ways to regulate maritime commerce in the United States, the Jones Act stipulates that maritime merchandise in the United States must be carried out using ships or vessels that are built, operate, and owned by US citizens and permanent residents.
The Jones Act is often regarded as a protectionist piece of legislation that ensures that America maintains a strong economic, political and national security strength in the maritime industry.
Part of the regulations of the Jones Act includes higher rates charged for the shipping of goods to countries outside of the terrains or lands of the United States.