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Thursday, 02 January 20
SULPHUR 2020 COMPENDIUM - HOW ARE INDIVIDUAL PORT STATES EXPECTED TO REACT? - STANDARD CLUB
 KNOWLEDGE TO ELEVATE
With the new sulphur limits soon to be in force, Standard Club has been investigating the ways in which certain jurisdictions are expected to react to violations.
We contacted our local correspondents from a variety of different ports, including Brazil, China, Denmark, Norway, Panama, Spain and Sweden, to build a compilation of what we believe is useful and practical knowledge for dealing with future sulphur claims.
We asked our correspondents the following series of questions:
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Will compliant bunkers be available in your jurisdiction?
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Which government body or organisation issues fines for sulphur violations?
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What is the estimated potential value of fines?
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Is there a possibility of criminal action for sulphur violations?
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Can a ship be detained for violations? If so, will a club LOU be accepted to secure its release?
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Is it possible to appeal fines?
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What contingency measures are available for ships carrying non-compliant fuel?
The answers to these questions are as follows. If you have questions about any of these jurisdictions, or any jurisdictions which are not listed below, please contact your usual claims handler at the club for further assistance.
Brazil
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Compliant bunkers will be available in Salvador, Sao Luis, Belem and Macapa.
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Fines may be issued by the ANP, IBAMA (the Environmental Authority) or the Harbour Master´s Office at each port.
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The estimated potential fines range from BRL 5,000 to BRL 2,000,000.
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There is a possibility of criminal action for sulphur violations in Brazil.
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A ship may be detained for sulphur violations until it is proved that there are bunkers within specification on board. Acceptance of a club LOU will depend on each individual case.
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It is possible to appeal fines.
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In the event of non-compliance, the Authorities will need to verify that the off-spec bunkers have been segregated on board.
China
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Compliant bunkers should be available in China. However, members should check with local agents and the port authority before calling to confirm availability.
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The local marine authority (the MSA) issues fines for sulphur violations.
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According to the PRC Air Pollution Prevention and Control Law, shipowners may face administrative penalties ranging from RMB10,000 to RMB100,000.
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While this is unlikely, there is a possibility for criminal action in the event of serious violations.
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Ships can be detained, depending on the seriousness of the violation. It is not known whether a club LOU would be accepted.
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Appeals of fines are unlikely to be successful if a violation has in fact occurred. However, owners may apply for a review of the fine if they suspect that the administrative procedures have been incorrectly applied (i.e. there has been no violation).
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From 1 January 2020 if a ship is unable to obtain compliant bunkers she should submit a FONAR to the MSA before entering Chinese waters. From 1 March 2020 if a ship is carrying non-compliant bunkers in Chinese waters they can discharge the non-compliant bunkers, or (subject to MSA approval) retain the non-compliant bunkers on board after providing a letter of commitment not to use these bunkers in Chinese waters.
Denmark
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Compliant bunkers will be available in Denmark.
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The Port State Control and the police both administer fines for sulphur violations.
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Fines for non-compliance can range from DKK 30,000 to DKK 300,000.
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Criminal action may in some cases be brought for non-compliance. Fines are imposed by the police, following penalty proceedings and public court hearings. In cases of gross negligence, or of continuous violation of the sulphur cap, there is the possibility of imprisonment for up to two years.
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A ship can be detained until it has taken the necessary steps to ensure compliance with the sulphur content regulations. Club LOUs will not be accepted to secure release of the ship.
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Fines can be appealed through the usual judicial channels (at the Court of Appeal and potentially at the Supreme Court).
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If the ship is not compliant with the sulphur regulations, it will be asked by officials to demonstrate that it has taken adequate steps to be compliant. The owner will have to demonstrate that they have established procedures on board the ship to ensure compliance. The owner will also have to provide documentation showing their attempts to obtain compliant bunkers.
Norway
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Compliant bunkers will be available in Norway.
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The Norwegian Maritime Authority (Sjøfartsdirektoratet) issues fines for violations.
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The lowest possible fine is around NOK 79,886. Fines are typically around NOK 250,000, although this figure may be higher depending on the degree of negligence and/or guilt.
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Criminal action may be brought for violations.
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Arrest of the ship for violation of the sulphur limits is possible.
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It is possible to appeal fines to the Norwegian Ministry of Climate and Environment.
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In the event of non-compliance, compliant bunkers are available so that the non-compliant bunkers can be replaced.
Panama
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Compliant bunkers will be available in Panama.
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Fines will be administered by the Panama Maritime Authority (PMA) and the Panama Canal Authority (PCA).
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The PMA and PCA will calculate fines based on the perceived seriousness of the violation. To date, there have been no known fines by the PMA or PCA, so it is difficult to say how they will deal with these incidents.
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Currently there have not been any known criminal proceedings relating to sulphur violations.
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A ship can be detained by both the PMA and PCA for violations, although this is seen to be unlikely. The PMA has in the past been vague regarding club LOU’s but the PCA regularly accepts them for other issues.
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Administrative fines are generally unappealable.
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There are limited options for ships to debunker non-compliant fuel at Panama.
Spain
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Compliant bunkers will be available in Spain.
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The Spanish Central Government Authority issues fines for sulphur violations. The Harbour Master’s office belongs to Merchant Marine General Management, which itself belongs to the Government Ministry in charge of public work.
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There is no set figure for fines. Fines are usually around EUR 22,000 although they could be as high as EUR 180,000. In case of wilful actions, the fine could be as high as EUR 600,000. The Harbour Master will ask for a guarantee to permit the ship to sail (club LOUs are not accepted).
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In theory there is a possibility of criminal action, but only if the use of off-spec bunkers was deliberate.
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A ship can be detained for sulphur violations. In such a case, a club LOU will not be accepted. Authorities will only accept a cash deposit, a bond or a bank security issued by a Spanish Insurer or Bank.
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It is possible to appeal fines, but success is unlikely.
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Any non-compliant bunkers on board will be banned, even if not in use, and similar sanctions will be imposed unless the ship has a scrubber in good operational condition. In addition to the sampling of storage tanks, evidence of tank cleaning and a bunker delivery note will also be required on board.
Sweden
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Compliant bunkers will be available in Sweden.
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The Coast Guard will issue fines for sulphur violations.
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The estimated value of fines is still under discussion. However, there is a risk that fines may be high value to deter non-compliance with the sulphur limits.
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There are not expected to be any criminal repercussions for non-compliance, only fines.
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In very extreme cases, ships can be detained for sulphur violations. It is difficult to predict whether the authorities will accept a club LOU in this situation.
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It is possible to appeal fines.
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In the event of non-compliance, there are many well established bunker operators in the region who can handle non-compliant bunkers.
Source: Standard Club
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Tuesday, 16 June 20
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Showing 911 to 915 news of total 6871 |
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- Billiton Holdings Pty Ltd - Australia
- Baramulti Group, Indonesia
- Kepco SPC Power Corporation, Philippines
- Marubeni Corporation - India
- India Bulls Power Limited - India
- SMC Global Power, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- IEA Clean Coal Centre - UK
- Vedanta Resources Plc - India
- Therma Luzon, Inc, Philippines
- Mercuria Energy - Indonesia
- Anglo American - United Kingdom
- Minerals Council of Australia
- GN Power Mariveles Coal Plant, Philippines
- Global Coal Blending Company Limited - Australia
- Chamber of Mines of South Africa
- Thiess Contractors Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Riau Bara Harum - Indonesia
- The Treasury - Australian Government
- Oldendorff Carriers - Singapore
- Attock Cement Pakistan Limited
- Price Waterhouse Coopers - Russia
- Bhatia International Limited - India
- Rio Tinto Coal - Australia
- Madhucon Powers Ltd - India
- Lanco Infratech Ltd - India
- The State Trading Corporation of India Ltd
- ASAPP Information Group - India
- Thai Mozambique Logistica
- Chettinad Cement Corporation Ltd - India
- Altura Mining Limited, Indonesia
- Georgia Ports Authority, United States
- Posco Energy - South Korea
- Vizag Seaport Private Limited - India
- Global Business Power Corporation, Philippines
- London Commodity Brokers - England
- Essar Steel Hazira Ltd - India
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- GAC Shipping (India) Pvt Ltd
- CIMB Investment Bank - Malaysia
- Neyveli Lignite Corporation Ltd, - India
- Merrill Lynch Commodities Europe
- Latin American Coal - Colombia
- Deloitte Consulting - India
- Directorate General of MIneral and Coal - Indonesia
- Intertek Mineral Services - Indonesia
- Trasteel International SA, Italy
- Orica Mining Services - Indonesia
- The University of Queensland
- Pendopo Energi Batubara - Indonesia
- Port Waratah Coal Services - Australia
- PetroVietnam Power Coal Import and Supply Company
- Medco Energi Mining Internasional
- Wilmar Investment Holdings
- Kohat Cement Company Ltd. - Pakistan
- Africa Commodities Group - South Africa
- Semirara Mining and Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Parliament of New Zealand
- Sakthi Sugars Limited - India
- Mintek Dendrill Indonesia
- Straits Asia Resources Limited - Singapore
- Borneo Indobara - Indonesia
- San Jose City I Power Corp, Philippines
- Coal and Oil Company - UAE
- SN Aboitiz Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rashtriya Ispat Nigam Limited - India
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Bukit Baiduri Energy - Indonesia
- New Zealand Coal & Carbon
- Savvy Resources Ltd - HongKong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
- Carbofer General Trading SA - India
- Leighton Contractors Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Globalindo Alam Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Sinarmas Energy and Mining - Indonesia
- Central Java Power - Indonesia
- Australian Coal Association
- Holcim Trading Pte Ltd - Singapore
- Uttam Galva Steels Limited - India
- Orica Australia Pty. Ltd.
- Jindal Steel & Power Ltd - India
- Planning Commission, India
- Renaissance Capital - South Africa
- Power Finance Corporation Ltd., India
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- McConnell Dowell - Australia
- Xindia Steels Limited - India
- Semirara Mining Corp, Philippines
- Central Electricity Authority - India
- TNB Fuel Sdn Bhd - Malaysia
- Heidelberg Cement - Germany
- Bulk Trading Sa - Switzerland
- Ministry of Mines - Canada
- Vijayanagar Sugar Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Kideco Jaya Agung - Indonesia
- Australian Commodity Traders Exchange
- Sical Logistics Limited - India
- Gujarat Sidhee Cement - India
- Independent Power Producers Association of India
- Indogreen Group - Indonesia
- Agrawal Coal Company - India
- Eastern Energy - Thailand
- Ministry of Transport, Egypt
- GMR Energy Limited - India
- Samtan Co., Ltd - South Korea
- Binh Thuan Hamico - Vietnam
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Indika Energy - Indonesia
- Bangladesh Power Developement Board
- Mjunction Services Limited - India
- GVK Power & Infra Limited - India
- Commonwealth Bank - Australia
- Indonesian Coal Mining Association
- Global Green Power PLC Corporation, Philippines
- PowerSource Philippines DevCo
- Parry Sugars Refinery, India
- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- Sree Jayajothi Cements Limited - India
- Sindya Power Generating Company Private Ltd
- Krishnapatnam Port Company Ltd. - India
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- Kumho Petrochemical, South Korea
- Tata Chemicals Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- South Luzon Thermal Energy Corporation
- Energy Development Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Bharathi Cement Corporation - India
- Eastern Coal Council - USA
- Ind-Barath Power Infra Limited - India
- Maheswari Brothers Coal Limited - India
- European Bulk Services B.V. - Netherlands
- Meralco Power Generation, Philippines
- ICICI Bank Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Metalloyd Limited - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Ministry of Finance - Indonesia
- Indian Energy Exchange, India
- Coastal Gujarat Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indian Oil Corporation Limited
- Ceylon Electricity Board - Sri Lanka
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- Salva Resources Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Economic Council, Georgia
- Malabar Cements Ltd - India
- LBH Netherlands Bv - Netherlands
- IHS Mccloskey Coal Group - USA
- International Coal Ventures Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Petron Corporation, Philippines
- Ambuja Cements Ltd - India
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- Siam City Cement - Thailand
- Energy Link Ltd, New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- White Energy Company Limited
- Electricity Authority, New Zealand
- Banpu Public Company Limited - Thailand
- Tamil Nadu electricity Board
- CNBM International Corporation - China
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhushan Steel Limited - India
- Jaiprakash Power Ventures ltd
- Singapore Mercantile Exchange
- Cigading International Bulk Terminal - Indonesia
- Antam Resourcindo - Indonesia
- Siam City Cement PLC, Thailand
- Formosa Plastics Group - Taiwan
- Timah Investasi Mineral - Indoneisa
- Directorate Of Revenue Intelligence - India
- Meenaskhi Energy Private Limited - India
- Toyota Tsusho Corporation, Japan
- Sarangani Energy Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Dalmia Cement Bharat India
- Gujarat Electricity Regulatory Commission - India
- Makarim & Taira - Indonesia
- Kaltim Prima Coal - Indonesia
- Videocon Industries ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- MS Steel International - UAE
- Karaikal Port Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Indo Tambangraya Megah - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
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