BIMCO is developing a standard industry clause to address contractual uncertainties arising from the United States Trade Representative (USTR)’s Notice of Actions to impose fees on Chinese-related ships calling US ports.
The USTR has announced actions to impose fees on ships calling at US ports which are Chinese-built or have Chinese owners or operators.
The actions are part of the USTR’s “Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance”. When implemented, the actions will also result in fees imposed on any car carrier built outside of the US.
“When implemented, the measures will significantly raise the cost of seaborne trade to and from the United States,” said David Loosley, BIMCO Secretary General & CEO.
“Additionally, the actions present complex contractual challenges for the shipping industry, which is responsible for transporting around 90 per cent of world trade.”
Recognising the complexities, the BIMCO Documentary Committee has decided to prioritise the drafting of clauses to support the shipping industry in navigating the new rules.
READ: USTR proposes $1.5 million fee for Chinese ships entering ports
“Seen in the light of the complex nature of the USTR actions, we have decided to make this a priority,” said Stinne Taiger Ivø, Deputy Secretary General & Director of Contracts at BIMCO.
“A BIMCO subcommittee comprising legal and commercial experts has been established, and work on a clause is already underway. The clause is expected to be published in the near future, and further communication is planned once it is adopted.”
Moreover, the USTR’s Office has announced a public comment process to consider proposed modifications to certain aspects of Annexes III and IV in the action related to the Section 301 Investigation of China’s targeting of the maritime, Logistics, and Shipbuilding Sectors for Dominance.
