US Chinese Nexus Fees Clause for period time charters
14 April 2025
If, the United States government brings into effect 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 would be imposed on the Vessel and/or the Owner and/or the Vessel’s manager should the Vessel call at ports or areas of the United States of America (including any of its overseas territories and possessions) (‘the US’) by reason of (i) the Owners or their commercial partners having actual or prospective order(s) for Chinese built vessel(s) and/or (ii)the Vessel (or any parts of the Vessel) or other vessels within the same fleet or under the same ultimate ownership having been constructed in China, and/or (iii), the Owner and/or the Vessel and/or the Vessel’s managers and/or the Charterers being associated with a Chinese operator or in some other way being deemed to have a nexus with China (together a ‘Chinese Nexus’)
- The Trading Limits of the Vessel will be amended to exclude the US (subject to c below) unless the Charterers confirm in writing that they shall bear sole responsibility for the Fees, shall pay the Fees and interest and any penalties relating thereto promptly and will not suffer any lien to be placed upon the vessel in respect of the Fees or any interest or penalties relating thereto.
- If, the Vessel has been ordered by the Charterers to call at US port(s) or area(s) for any purpose whatsoever when the legislation or executive order imposing Fees is enacted then unless the confirmation in subparagraph a) is provided by the Charterers within 48 hours of the legislation being enacted and notwithstanding any other term of the charter, Owners may require the Charterers to give revised orders for the Vessel within 48 hours which exclude entering the US including where the Vessel is laden orders to discharge the cargo at an alternative reasonable safe port and the Charterparty will be deemed to be varied accordingly. All time spent and costs incurred shall be for Charterers’ sole account.
- Should the Charterers fail to give revised orders for the Vessel pursuant to clause b) above Owners have the option in their sole discretion either (i) to avoid the US and if the Vessel is laden to discharge the cargo at any reasonable safe port of their choice in which case all costs, risk and expenses for the alternative discharge shall be for Charterers’ account or (ii) to proceed to the US port(s) or areas(s) as ordered in which event any Fees imposed and any interest and penalty thereon shall be paid by the Charterers directly to the relevant authority before the due date for payment failing which the Owners will be entitled (but not obliged) to settle the same and to claim a full indemnity from the Charterers. Any delay to the Vessel as a result of the Fees shall be for the Charterers account.
- Charterers shall indemnify Owners for claims arising out of the Vessel proceeding in accordance with any of the provisions of this Clause which are made under any bills of lading, waybills or other documents evidencing contracts of carriage.
- For the avoidance of doubt it is confirmed that notwithstanding anything to the contrary in this charterparty, the Charterers shall bear full responsibility for Fees imposed by the United States government as a result of the Vessel having a Chinese Nexus levied on the Vessel and/or the Owner as a result of calling at port(s) or area(s) in the US during this Charterparty and shall indemnify and hold harmless the Owner against any claims in relation to the Fees including without limitation, providing security if required by the Owners and payment of legal and/or other costs whether or not the Owner was the party on whom the Fees were originally levied.
Members can click here for a commentary/explanatory notes on the above clause.
[Rev.1 - 14 April 2025]
