The question of whether foreign-flagged ships involved in international trade are subject to value added tax (VAT) when supplying bunkers in Argentina is frequently posed. If a vessel is supplied bunkers in one Argentine port and subsequently calls to another Argentine port before proceeding overseas, this is generally considered to be cabotage and is therefore subject to VAT.
Local authorities have increasingly exercised their power to enforce local regulations concerning waste disposal and broadened the responsibility of vessels in this regard. It has become common practice for local authorities to request the compulsory discharge of waste from vessels, even if this action appears to go against commonly accepted international law that is binding in Argentina.
Ships calling at ports on the Parana river are increasingly being asked to submit a pest control certificate to the Health Authority. Failure to comply with this request could require the ship to be fumigated. However, this can be avoided if a ship can prove that it has been fumigated by a competent authority or if it has been exempted from such operation in the past six months and obtained a certificate from the health authorities of a port officially authorised for this purpose.
Under the new Regulation 693-E/2017, the system for checking the cargo-worthiness of holds and tanks of ships and barges for the export of grains and their products and by-products will be compulsorily applied to all ships. In terms of compliance, ships that meet industrial standards should face no major issues and any attempt from surveyors or inspectors to reject such a ship could be challenged.
The Ministry of Environment and Sustainable Development recently issued Regulation 85-E/2017, under which vessels calling at Argentine ports must apply a chlorination process to their ballast water tanks to prevent the introduction of invasive aquatic species. However, the regulation posits only that chlorination must be done on arrival and does not clarify whether it should be conducted by the crew or a local entity. This has resulted in several operational issues.
The Paris Agreement sets the ambitious goal of achieving net zero greenhouse gas emissions in the second half of the 21st century. Therefore, worldwide traffic and transport must change. Despite these objectives, people tend to overlook the fact that automated driving is not only innovative and comfortable, but may also have an important impact on reducing greenhouse gas emissions in future.
The Chamber of Representatives recently enacted the new Maritime Code, which will replace – to a large extent, but not completely – numerous provisions in several existing codes. The new code is over 470 pages long and consequently cannot be explained in a few lines; however, this article highlights some of the major changes that will be introduced in relation to existing legislation.
The Supreme Court has rendered its second decision in the long-running road haulage dispute known as the 'sugar case'. The Supreme Court considered the scope of application of the Convention on the Contract for the International Carriage of Goods by Road (CMR), and whether all damages resulting from a loss that arises from a CMR contract can be recovered from the road carrier.
Over the past few years, the Antwerp Commercial Court has considered on multiple occasions the question of whether a carrier's terms and conditions published on its website can be validly incorporated into an agreement. Although the court has provided insightful guidance on the matter, further questions remain unanswered.
A new law has been passed that establishes measures to combat maritime piracy. Under certain conditions, a Belgian-flagged ship will now be allowed to rely on maritime security companies to protect the vessel against piracy. This new legislation is a step in the right direction, but there is still work to be done.
In cases where extensive mandatory implementation of an EU directive in one EU member state conflicts with the (lesser) implementation in another member state, does the Rome Treaty prevail over the law chosen by the parties? This was the question posed to the European Court of Justice in an ongoing case relating to an arbitration clause in a ship agency contract.
In 2016 the International Maritime Organisation approved a reduction of the maximum amount of sulphur that can be contained in ships' fuel oil by January 2020. The National Agency of Petroleum, Natural Gas and Biofuels recently initiated a public hearing to obtain feedback on its proposal to amend Resolution 52/2010 in order to comply with the new requirements. Some parties expressed concerns about the changes, mainly due to the increase in costs in an already difficult economic environment.
Two members of Parliament recently presented a draft law that would mandate the installation of additional passive safety equipment for new boat engines and factory outlets. The draft law builds on previous legislation which sought to reduce the large number of serious accidents between vessels and the North Region's riverside inhabitants. Legislators await a congressional order to define the committees that will analyse the draft law and its procedural arrangements.
The National Agency for Waterway Transportation recently published Resolution 6,235, approving the agency's regulatory agenda for the 2018-2019 biennium. The regulatory agenda aims to inform the regulated sector and society at large about the agency's main regulatory issues for the biennium.
A court recently confirmed the Brazilian courts' lack of jurisdiction to judge a claim brought by a foreign bunker supplier against a foreign shipowner and operator seeking arrest of the debtor's vessel while calling at a Brazilian port. The decision sets an important precedent and should help to prevent ungrounded arrest claims, as it clarifies that it is paramount to carefully analyse all of the risks involving an arrest lawsuit in Brazil before taking any action in order to avoid unnecessary exposure.
The Sixth Civil Chamber of the Rio de Janeiro State Court of Appeals recently decided that a protection and indemnity (P&I) club was not liable for an associate shipowner's debts. In its decision, the court distinguished the P&I club from insurers operating in the Brazilian insurance market. This decision is paramount because it creates an important court precedent regarding P&I clubs' liability for the damages caused to third parties by their associates.
The government recently enacted two measures regarding the cruising permit fees that each charter boat must pay while carrying paying passengers in the British Virgin Islands. Under the Cruising Permit (Amendment) Act, boats will now be classified as either home-based or foreign-based charter boats, with set fees for each classification. The Statutory Rates, Fees and Charges (Amendment of Schedule) Order 2017 confirms these fees for internal government purposes.