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Conference unifix::sailing

Title:SAILING
Notice:Please read Note 2.* before participating in this conference
Moderator:UNIFIX::BERENS
Created:Wed Jul 01 1992
Last Modified:Mon Jun 02 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:2299
Total number of notes:20724

2119.0. "Jones Act.. who needs it?" by MROA::BERICSON (MRO1-1/KL31 DTN 297-3200) Tue Mar 15 1994 09:22

    Mods.. if there is an existing note please move.. couln't find one.
    
    In planning retirement I am considering buying a boat and chartering
    cruises.. and have been limiting my view to U.S. built boats because of
    the Jones Act which (tom my understanding) limits captained chartering to
    American made boats.
    
    This winter I charterd out of FL on a German made 52' Yawl... How? I
    asked the captain.  
    
    It seems that he worked with the coast guard to get it right...
    
    He set up two corporations.. Charter Corp and Crew Corp (not real)
    
    The terms of sailing are that you charter a "bare" baot from charter
    corp... but you must have an approved crew from the charter corp.  The
    approvved crew may be selected form anyone in the Crew Corp. listing.
    
    The Crew Corp lists the captain and his wife only.
    
    With a loophole this big.. why do we need the Jones Act?
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2119.1Feds will never find youWRKSYS::SCHUMANNDot your t's and cross your i'sTue Mar 15 1994 10:2111
The Jones act is rarely enforced for small craft, because it's virtually
impossible for the government to find out that it's being violated. There's
no "victim" to complain. If the government goes after the operation you
described, they'd almost certainly win their case, despite the sham
corporations. Even if they don't win, they can exhaust the operator's financial
resources through multiple appeals.

If you want to retire and do charters, you'd be better off to do it in the
Carribean, where there are more customers and fewer laws :-).

--RS