The Baltic and International Maritime Council (BIMCO) on July 22, 2025, published a standard clause for time charter parties to address contractual uncertainties arising from the U.S. Trade Representative's (USTR) recent actions to impose significant fees on Chinese-related vessels calling in the United States. The relevant USTR fees are those imposed pursuant to Annexes I and II of the Notice of Action and Proposed Action in Section 301 Investigation of China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance and subsequent notices and enabling rules and guidance (the USTR Notice).
What Does the BIMCO USTR Clause Do?
The BIMCO USTR clause establishes a contractual framework for owners and charterers to allocate both compliance and financial responsibilities related to the USTR Notice. Specifically, the clause:
- Requires Owners to Declare Ownership. The clause provides that, if requested by the charterers, the owners shall declare whether, for purposes of the USTR Notice, 1) the registered owners, bareboat charterers, and disponent owners or their managers are a Chinese vessel owner, 2) the vessel operator is a vessel operator of China and 3) the vessel was built in China. The owners must also notify the charterers of any changes to the foregoing during the charter party.
- Allocates Costs. The clause delineates who bears financial responsibility for fees imposed pursuant to Annexes I and II of the USTR Notice. In particular:
- The default position is that the charterers pay. If the charterers order the vessel to call in the U.S. and fees are incurred pursuant to the USTR Notice, the charterers are solely responsible for such fees unless the owners' declaration to the charterers was inaccurate or incomplete or the fees result directly from a change by the owners of the vessel's registered owner, bareboat charterer, disponent owner, managers or operator.
- The charterers shall not be responsible for fees incurred pursuant to the USTR Notice if they are the result of owners' breaches of the charter party, an off-hire event or use of the vessel outside of the charterers' instructions.
- Provides Procedural Guidance. Given the sums involved, the clause expressly provides for fees to be paid by the applicable party (charterers or owners) directly to the relevant U.S. agency, rather than through local port agents. The clause also sets forth the consequences of noncompliance, including an indemnification of the other party for consequences, claims or demands arising from a failure to pay.
Key Considerations for Owners and Charterers
- Clarity in Charter Party Terms: The BIMCO USTR clause may be included in new and existing charter parties. Owners and charterers should ensure their relevant charter parties clearly incorporate the BIMCO USTR clause and specify who is responsible for compliance and payment of fees. Clear contractual language can help prevent disputes over responsibility for filings and fees.
- Operational Readiness: Owners and charterers should verify that their managers, crews, agents and contractual counterparties are familiar with USTR Notice requirements to avoid delays or inadvertent penalties. Owners should be prepared to provide ownership declarations to charterers.
- Cost Allocation: Charterers should budget for USTR Notice-related fees as part of their port call expenses.
- Keep Abreast of Developments: There remains uncertainty around the implementation of the USTR Notice and associated fees. Though the BIMCO USTR clause is drafted flexibly to address some of these uncertainties, such as whether relevant U.S. agencies will require that specific parties directly remit fees, owners and charterers should keep abreast of developments and changes, including possible amendments to the BIMCO USTR clause, as the USTR Notice and enabling rules and guidance are being implemented.
For Additional Information
The authors of this Holland & Knight alert also published an analysis of the impact of USTR Notice-related fees on Chinese sale-leaseback financings. The article, "USA – NATIONWIDE: An Introduction to Transportation: Shipping/Maritime: Finance," appeared in the "In-Depth Guides" section of the 2025 Chambers USA guide.
