The Documentary Committee of BIMCO, the world’s largest shipping association, has adopted a standard clause aimed at addressing contractual uncertainties that may arise from the United States Trade Representative’s  Notice of Actions to impose fees on Chinese-related ships calling US ports.

A BIMCO subcommittee comprising legal and commercial experts began working on the clause at the start of June, prioritising its development as the USTR announced actions to impose fees on ships calling at US ports which are Chinese-built or have Chinese owners or operators.

“It has been a priority to engage experts representing different segments of the industry when developing the clause in a short space of time. The USTR actions will present complex challenges, and the subcommittee has carefully discussed how best to arrive at a result that will help the industry minimise disputes,” says Stinne Taiger Ivø, Deputy Secretary General & Director of Contracts at BIMCO.

“We anticipate that many of the current uncertainties surrounding the enabling provisions to give the USTR Notice its intended effect will be resolved in the months following the implementation of the USTR fees. As more experience is gained, reviewing the clause to ensure it continues to meet our high standards and the industry’s needs will be part of BIMCO’s ongoing contractual work,” says Nicholas Fell, Chairperson of BIMCO’s Documentary Committee.

The Notice of Action will significantly raise the cost of seaborne trade to and from the United States and add to regulatory challenges for the shipping industry.

They are part of the USTR’s “Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance” and will also result in fees imposed on any car carrier built outside of the United States.