Liability for US Chinese Nexus
26 June 2025
Fees Clause
- Notwithstanding any other provision of this charterparty the Charterers shall be liable for any tariffs, service fees or other fees, charges, penalties, dues (whether port or otherwise) or taxes in any form whatsoever on cargo and/or freight and/or demurrage and/or hire and/or profits and/or the Vessel (whether for entering or leaving a port or area, or on any other basis) (‘Fees’) that are imposed on the Vessel and/or the Owners and/or the Vessel’s owner(s), managers or operators (current or former) should Charterers order the Vessel to call at ports or areas of the United States of America (including any of its overseas territories and possessions) (‘the US’) for any purpose whatsoever by reason of either (i) the Vessel (or any parts of the Vessel) having been constructed in China or deemed to have been constructed in China (ii) the Owners and/or the Vessel’s owner(s), managers or operators (current or former) and/or the Charterers being vessel operators or vessel owners of China or deemed to be vessel operators or vessel owners of China by any relevant US authority and thereby liable for the Fees ((i) and (ii) each a ‘Chinese Nexus’).
- The Charterers shall pay to the Owners no later than five days before the estimated date of entry of the Vessel to the first port that Fees are due, the Fees as estimated by the Owners and notified to the Charterers. The Owners shall pay (whether directly or indirectly) the Fees to the relevant US authorities immediately when due and shall provide evidence to the Charterers of payment. If the amount paid by the Charterers to Owners in relation to the Fees is insufficient, Charterers shall reimburse Owners any additional sums paid by the Owners upon receipt of their first written demand with evidence of payment to the US authorities. If the amount Charterers have paid to Owners is more than the Fees paid to the US authorities by Owners, Owners shall reimburse the difference. Charterers shall indemnify the Owners and hold them harmless against any and all damages, losses, liabilities, costs, and expenses (including but not limited to legal fees and disbursements) arising out of or in connection with the failure of the Charterers to pay the Fees as described above.
INTERTANKO Members can view the commentary for this clause here.