That the companies have been using foreign-flagged ships isn’t in dispute. But the scheme that the companies have used to exploit a loophole in the Jones Act is actually kind of genius. Here’s howbreaks down the plot, which begins in Dutch Harbor, Alaska, and is almost Bond villainesque in its level of complication:
If the trucks carrying this fish drove directly into Maine, the whole arrangement would be prohibited by the Jones Act, which bans the use of foreign vessels to transport goods between U.S. points. However, the "Bayside route" takes advantage of an obscure clause in the Act - the "Third Proviso" - which permits foreign-flag vessels to be used if a "through route over" a Canadian rail line is also involved in the delivery.
That’s a change from 2012, when, according to the U.S. Department of Justice, the companies “legally used the New Brunswick Southern Railway to transport their seafood in Canada, a journey of more than 30 miles along an established railway that moved the seafood from one point to another.” In contrast, a video of the process that the U.S. Customs and Border Protection highlights just how ridiculous the current performance is.
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