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United States developments

It is now three years since ICS agreed to establish formal representation in the United States through the Washington office of the Council of European and Japanese National Shipowners' Associations (CENSA). As the world's major trading nation, the influence of the United States on international shipping cannot be overstated, and for many years a continuing objective of ICS has been to encourage the United States to act in accordance with international agreements and not adopt its own unilateral rules.

One of the most worrying United States developments of the past year has been the discussion on the proposed Harbor Services User Fees (HSUF). The proposal, intended to raise almost US$1 billion, follows the 1998 decision of the Supreme Court that the existing Harbor Maintenance Tax was unconstitutional in so far as it was applied to US exporters.

If adopted, the Administration's HSUF proposal would introduce a fee on shipping ranging from some US$25,000 to US$145,000 per ship per voyage. Although the precise nature of the proposal is still unclear, a medium sized container ship operator might expect fees of over US$10 million a year. The proposal has generated widespread opposition from the entire maritime sector in the United States, and ICS has joined a coalition of interests, led by the Chamber of Shipping of America, to co-ordinate the industry's arguments.

The concern about the HSUF is related not only to the size of the proposed fee but also to the use to which it will be put, the Administration having proposed that capital projects such as channel deepening and widening, traditionally regarded as a general funding responsibility, should be met directly by users. It is significant that there has been no effective consultation with industry, and that the Administration appears to have made no serious attempt to assess the likely impact, economic and otherwise, of its proposal. It is hardly surprising that increasing scepticism about the proposal is being voiced by members of Congress.

The Administration can hardly be blamed for another US development which has given rise to much concern outside the United States. The American Maritime Law Association (MLA) has proposed amendments to the US Carriage of Goods by Sea Act (COGSA) which, if adopted, would result in yet another liability regime differing from the widely recognised Hague/Visby Rules. While the MLA claims that its proposals reflect current trading practices, they not only ignore certain long-established concepts, but also seek to impose US jurisdiction for resolution of disputes. ICS, BIMCO and the P&I Clubs have all argued strongly against the proposals, and ICS has expressed the wish to testify against the amendments in any Congressional hearings that may be held on the COGSA proposals.

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