Pretty sure that is telling you that you that while in the EEZ you can't catch or even possess more then 8 fish which must measure at least 18.5 inches.
So if you intend to fish inshore and stay inshore you can have 5 17.5 inch fish.
If you were to take those 17.5 fish into the EEZ, even though you did not catch them there, you would be in violation for having short fish.
Or lets say you start your trip in the EEZ and you keep 8 fish at 18.5 inches. Nice, you beat the system, right?
Wrong .....Unless you plan on staying in the EEZ forever your eventually going to have to travel back in to state waters and as soon as you enter state waters you'd be violation for keeping 3 more fish than allowed.
Bottom line is your never going to be able to have more then 5 fish per person here in NJ even if you did catch them in the EEZ.
Kind of confusing, right?
Now lets add NY into the mix that has yet another set of regulations.
Oh man, now my head hurts... Time for a cocktail
