BIMCO has published a new clause in response to proposals by the United States Trade Representative (USTR) to impose a “US Service Fee” on vessels with links to China calling at U.S. ports. The BIMCO USTR Clause for Time Charter Parties 2025 is intended to allocate responsibilities and liabilities between owners and charterers for such fees.
We note that these proposed port fees are now significantly moderated from the prior proposals and, in particular, are likely to have limited impact for NNPC members. However, in view of the evolving policies of the U.S. government, we recommend that all members consider incorporating BIMCO’s clause into their charterparties where appropriate.
In general, the charterers bear the primary responsibility for payment of the USTR Service Fee if the vessel is ordered to call at a U.S. port. However, the clause also outlines certain circumstances in which owners remain liable, for example, where a fee is triggered by a failure to disclose information.
The key aspects of the clause are:
- Charterers are required to pay the fee directly to the relevant U.S. authority and indemnify owners if the fee becomes payable due to the charterers’ trading orders.
- Owners remain responsible for the fee only in specific situations, such as when they fail to disclose existing links between the vessel and Chinese entities.
- Owners must notify charterers if, during the charter period, there are any changes that could result in the vessel becoming subject to the fee.
- Payment arrangements are clarified, with provisions for owners to suspend performance if charterers do not pay the fee as required. Owners are also entitled to reimbursement if they pay the fee on behalf of charterers under certain conditions.
The full text of the clause is available on the BIMCO website.
NNPC actively monitors developments in the U.S. and will continue to provide members with further updates as the situation evolves.
For more information or assistance in applying the USTR Clause for Time Charter Parties 2025, members are invited to contact the NNPC claims team at claims@nnpc-marine.com.
