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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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