The Documentary Committee of the world’s largest shipping association, BIMCO, has adopted a standard clause aimed at addressing contractual uncertainties that may arise from the US 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 after the USTR announced actions to impose fees on Chinese-built, owned, or operated ships calling at US ports.
According to the association, the notice of action will significantly raise the cost of seaborne trade to and from the US 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 US.
“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,” said Nicholas Fell, chairperson of BIMCO’s Documentary Committee.