The U.S. Office of Management and Budget has declined to act on a proposed rule change in the Passenger Vessel Services Act that would have drastically changed cruise ship operations in the United States. Some cruise officials had called the proposed rule &ldquo;devastating.&rdquo;<br /><br />In November, U.S. Customs and Border Protection, backed by Hawaiian legislators and NCL, proposed a new rule that would require non-U.S.-flagged ships leaving a U.S. port with U.S. passengers to spend at least 48 hours at a &ldquo;distant foreign port,&rdquo; allow passengers to go ashore, and that the time at the foreign call be at least 50 percent of the total time at U.S. ports.<br /><br />The rule change was aimed to protect U.S.-flagged ships operating in Hawaii, but could have had broader implications &ndash; such as to sailing in Alaska, Canada, Mexico and even the Caribbean, if broadly interpreted.<br /><br />In an Aug. 13 letter to Homeland Security, Susan E. Dudley, the administrator at the Office of Information and Regulatory Affairs, wrote: &ldquo;This proposal presents no market failure or compelling public need, omits a statement of the costs and benefits of the rulemaking and does not include a discussion and analysis of regulatory alternatives, significant distributive impacts, or uncertainties. For these reasons, we are returning the draft proposed rule for your reconsideration.&rdquo;<br /><br />&nbsp;The Passenger Vessel Services Act, enacted by U.S. Congress in 1886, restricts non-U.S.-flagged cruise ships from travel between two U.S. ports unless it also calls on a foreign port.