Liability for China US Nexus Fees Clause

28 November 2025
  1. Notwithstanding any other provision of this charterparty the Charterers shall be liable for any present or future 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) and/or charterers of any tier should Charterers order the Vessel to call at ports or areas of the People’s Republic of China (‘China) for any purpose whatsoever by reason of: (i) the Vessel (or any parts of the Vessel) having been constructed in the United States of America (the ‘US’) or deemed to have been constructed in the US; (ii) the Owners and/or the Vessel’s owner(s), managers or operators (current or former), charterers of any tier and/or the Charterers being vessel operators or vessel owners of the US or deemed to be vessel operators or vessel owners of the US by any relevant Chinese authority; (iii) flying the US Flag; and/or (iv) any other connection or deemed connection with the US  which may become relevant to the levying of the Fees and thereby liable for the Fees ((i) to (iv) each a ‘US Nexus’).

  2. The Charterers shall pay to the Owners the Fees as estimated by the Owners, or as communicated to them by the agents or any relevant Chinese authority, and notified to the Charterers no later than seven days before the estimated date of entry of the Vessel to the first port that fees are due. Should the Charterers fail to pay the Fees in accordance with this clause the Owners shall be entitled (notwithstanding any other provision of this Charterparty) at any time to suspend performance under this Charterparty without prior notice and without liability for the consequences thereof and the Vessel shall remain on hire or in the case of a voyage charterparty shall be on demurrage for the duration of the suspension. The Owners shall pay (whether directly or indirectly) the Fees to the relevant Chinese authorities 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 Chinese authorities. If the amount Charterers have paid to Owners is more than the Fees paid to the Chinese 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 co connection with the failure of the Charterers to pay the Fees as described above.

INTERTANKO Members can view the commentary for this clause here.

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