US Chinese Nexus Fees Clause for Voyage charters/time charter trips
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 are imposed on the Vessel and/or the Owner and/or the Vessel’s manager should the Vessel call at US (including any of its overseas territories and possessions) ports 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’)
- Either party shall have the right to cancel this charterparty without liability within 48 hours of the enactment of any legislation or executive order imposing such Fees, provided that the Vessel is cargo-free.
- I the Vessel is laden, when the legislation imposing Fees is enacted then notwithstanding any other term of the charter, Owners may require the Charterers to give revised orders for the Vessel to discharge the cargo at an alternative place of discharge and the Charterparty will be deemed to be varied accordingly and all time spent is to be for the Charterers’ account [ for voyage charters – if the discharge takes place at any place other than the contracted discharging port(s), the freight contracted should be adjusted considering actual savings or extra expenses (including but not limited to time, bunkers, port expenses, canal dues). The Owners shall have a lien on the cargo for such expenses and freight. Any delay while the Vessel is waiting for revised orders shall be for the Charterers account and shall be charged at the demurrage rate.]
- Should the Charterers fail to give revised orders for the discharge of the Vessel pursuant to clause (b) above, Owners have the option in their sole discretion either (i) to discharge the cargo at any reasonable safe port of their own 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 ports 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.
- The Charterers shall procure that the provisions of this Clause are incorporated into all bills of lading, waybills or other documents evidencing contracts of carriage that are issued in relation to this Charter Party. The Charterers shall indemnify the 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 and/or the Vessel’s manager as a result of calling at ports or areas in the USA 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]
