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Thursday, October 18, 2018

PORT COSTS – INDONESIA, USA

INDONESIA

-          VAT on agency services in Indonesia

Referring to our article in P&T circular No. 2/2000, we have received a report from a member that VAT was added onto the agency fee and operational costs contrary to our previously received indications from the authorities.   INTERTANKO has sent a strong protest to the Indonesian authorities regarding this breach of their own regulations.


USA

-          Average Most Probable Discharge (AMPD) Coverage

In response to an inquiry from one of our members we would like to give an explanation of this additional cost.  AMPD Coverage is in essence the regulation governed by the USCG Code of Federal Regulations that requires vessels lightering to have an oil spill response team on site with all necessary oil spill equipment to be utilised in case of an oil spill.

This extra cost is not incorporated in the WS flat rate nor listed under charterer’s account.  Although some charterers accept the AMPD Coverage, there should be a clause in the charter party that defines who is responsible for these costs. Owners should also explore the possibility of being covered for AMPD’s under the discharge terminal / lighting company’s arrangements.

For more details regarding the above ports please click here.

Source: John S. Connor Inc.,  Norfolk (Vi); Peabody & Lane Inc., Boston (Ma)