Business

NorthStandard: Increased risk of significant customs fines for incorrect bunker declarations

Custom fines over EUR 1 million are being reported in Senegal regarding allegedly incorrect declarations of any property on the ship including any apparent bunker shortages.

Published

1 year ago

May 15, 2023

Admin

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Global marine insurer NorthStandard on Tuesday (9 May) released an article on custom fines over EUR 1 million are being reported in, Senegal and the port of Dakar, in particular regarding allegedly incorrect declarations of any property on the ship (including any apparent bunker shortages), crew and cargo:

The situation has become more challenging as the grounds on which fines are levied have become increasingly diverse and the amount of the fines imposed are reaching high levels.

Ships calling at Dakar may be subjected to customs fines and/or detention for any alleged inaccuracies in documents and declarations. Examples include the following:

Deficits in the cargo manifest (including goods to be discharged in Dakar, as well as any cargo in transit);
Errors in the bills of lading;
Incorrect list of ports of call;
Errors in the crew list;
Errors in the list of crew personal effects;
Incorrect inventory of the bonded store;
Failure to declare the correct amount of food supplies, paint, or chemicals on board;
Failure to have the required number of fire extinguishers on board;
Failure to declare the amount of carbon dioxide (CO2) and foam concentrate contained within the vessel’s fixed fire extinguishing systems;
Failure to declare the quantity of “used oil”, including fuel oil contained within piping, lube oil contained in the engine sump tank and pumps, hydraulic oil in pressure tanks for windlass and winches, etc.; and,
Failures in the bunker declaration form, such as incorrectly detailing quantities of lube oil, diesel oil and fuel oil or quantities contained in tanks (including sump tanks), drums, cans and sludge.

The customs authorities closely examine the ship’s documents and declarations and check these against the actual cargo and/or property on board the ship by taking their own soundings and carrying out their own inspections. Strict penalties are imposed in accordance with the local Customs Code if any discrepancies are found. Even minor errors such as typos, incorrect use of capital letters and misplaced commas are attracting substantial fines. Acting in good faith is not accepted as an excuse.

It is also common for the customs authorities to impose customs fines where there is any shortage or excess of bagged, liquid or bulk cargo discharged from the ship. These fines are calculated based on the quantity and/or number of bags or weight recorded by a surveyor appointed by the customs authorities. However, the tallies of bagged cargoes are usually made ashore alongside the ship before the cargo is loaded onto trucks rather than in the cargo holds.

Fines can also be imposed by the immigration authorities for errors in the crew list, passenger list, ports of call list (previous and next ports), and stowaways list (if any). Even spelling errors have led to penalties being imposed in the past. However, these fines are less common and are usually not substantial.

In the light of this increase in fines, the club’s local correspondents recommend that members and masters take the following precautions:

Before arriving in the port, members should consult local agents for the latest requirements;
Complete the customs declaration before arriving in the port;
Ensure that all the items listed above including personal belongings of crew, food, ship’s stores, fire extinguishers, CO2, bunkers, and paint are accurately described in the declaration;
Ensure that all crewmembers’ passports are valid, and the seamen’s books are correctly filled and updated;
Prepare a file containing all the relevant documents and ask the vessel’s agent to come on board to check same before the customs officers arrive;
The master and the ship’s agent should personally receive customs officers and should carry out the formalities on board in their presence;
Ensure that any modification to the manifest has been made correctly;
Do not sign any document from the customs authorities which you do not fully understand;
Avoid attempting to argue or negotiate with the customs officers as they may well interpret any such efforts as an attempt to corrupt state officials, which is a punishable offence;
In order to minimise any exposure to fines for cargo shortages, a draft survey or tally of bagged cargoes should be carried out with all parties invited to attend; and,
Contact the club and a P&I correspondent for assistance in case of need; this can aid in possibly having the fine reduced and provide notice to the club in the event security needs to be supplied to release the ship.

In the event that a fine is or is likely to be imposed, the member should contact the club and the local correspondent immediately. The local correspondent can review the fine and attempt to negotiate a reduction. If the fine is not agreed prior to the ship departing, a bank guarantee or ‘promissory letter’ from the local correspondents is usually required. It is therefore important to engage the club and local correspondent as soon as possible following any incident.

The International Group is currently working with the Maritime Anti-Corruption Network (MACN) on a resolution.

Photo credit: Shaah Shahidh on Unsplash
Published: 15 May, 2023

Bunker Fuel

SIBCON 2024: EnterpriseSG to launch new Singapore standard for e-BDN

EnterpriseSG, through the Singapore Standards Council, will launch a new Singapore Standard 709 Specification for Digital Bunkering Supply Chain Documentation.

Published

17 hours ago

October 10, 2024

Admin

SIBCON 2024: New Singapore standard on digital bunkering to be launched

Enterprise Singapore (EnterpriseSG), through the Singapore Standards Council (SSC), will launch a new Singapore Standard (SS) 709 Specification for Digital Bunkering Supply Chain Documentation, according to Maritime and Port Authority of Singapore (MPA) on Wednesday (9 October).

MPA said the new standard will ensure data consistency and interoperability between digital systems and facilitate smoother transactions through trusted and verifiable digital bunkering documents.

This comes following Amy Khor, Senior Minister of State for the Ministry of Sustainability and the Environment and the Ministry of Transport, announcing that from 1 April 2025, all bunker suppliers will be required to provide digital bunkering services and issue electronic bunker delivery notes (e-BDNs) as a default.

The move was decided following successful pilots conducted since 1 November 2023 with bunker suppliers, including the top 10 bunker players, in Singapore.

To further enhance transparency and transaction integrity in bunkering operations, MPA will also introduce a centralised e-BDN record verification facility. This enables key stakeholders to verify the e-BDN received against the information transmitted to MPA.

EnterpriseSG has also launched the revised Singapore Standard (SS) 648 Code of Practice for Bunker Mass Flow Metering to include data integrity and transmission requirements in line with this new digital standard.

In the first eight months of 2024, MPA said Singapore saw strong growth of approximately 7% in total bunker sales over the same period last year, reaching over 36 million tonnes. Biofuels and liquefied natural gas bunker sales surpassed 700,00 metric tonnes.

To support the operationalisation of a higher mix of low-carbon alternative fuels, both EnterpriseSG and MPA are developing the Singapore standards for methanol bunkering and ammonia bunkering by 2024 and 2025 respectively.

The standards will cover custody transfer requirements, safety procedures and crew competencies, to ensure safe bunkering operations and handling of these fuels.

MPA also announced that three major shipping lines — Hafnia, K-Line, and MOL — are in early discussions to join the Singapore - Port of Los Angeles (LA)- Port of Long Beach (LB) Green and Digital Shipping Corridor (GDSC) initiative.

Each partner would be expected to spearhead a project to advance the corridor’s decarbonisation and digitalisation goals, such as the adoption of net-zero fuels, Just-in-Time route optimisation, and energy efficiency technologies such as wind-assisted ship propulsion.

The addition of the new partners will significantly strengthen the GDSC’s capacity to drive innovation in sustainable shipping practices and accelerate the adoption of zero/near-zero emission fuels and green technologies along the corridor.

Photo credit: Maritime and Port Authority of Singapore
Published: 10 October, 2024

Alternative Fuels

SIBCON 2024: SGMF releases methanol and ammonia bunkering guidelines

SFMF published Bunkering Guidelines for Ammonia and Bunkering Guidelines for Methanol, as well as Emergency Response Guide for Ammonia; also revealed new brand to reflect four key future marine fuels.

Published

17 hours ago

October 10, 2024

Admin

SIBCON 2024: SGMF releases methanol and ammonia bunkering guidelines

SGMF on Wednesday (9 October) announced the release of the Bunkering Guidelines for Ammonia and Bunkering Guidelines for Methanol, as well as the Emergency Response Guide for Ammonia.

During the 23rd Singapore International Bunkering Conference (SIBCON), SGMF also revealed its new brand reflecting the organisation’s current activities in the four key marine fuels for the future: LNG, methanol, ammonia and hydrogen.

SGMF is a membership-based organisation leading safe maritime decarbonisation with members across the full value chain of marine fuels, including suppliers, operators, owners, equipment manufacturers, class societies, port authorities, individuals and training organisations.

While the search for the perfect alternative fuel continues, SGMF said methanol and ammonia are two of the fuels that the global merchant fleet has identified and is looking to implement, emphasising the importance of these guidelines.

Methanol – With the first vessels already running on methanol, and many more on order, methanol is ahead of the curve in terms of adoption. It has also overtaken regulation, meaning that these early adopters are having to put forward safety solutions that have not yet been documented, and bunker suppliers using existing chemical carriers are trying to second guess what conversion and equipment may be needed to make their vessels physically compatible with the ships being produced. These methanol bunkering guidelines have been published as a first draft to highlight the key safety factors that need to be considered when designing and bunkering a vessel of any type with methanol.

Ammonia – Despite ammonia (NH3) not yet being commercially available as a marine fuel, this bunkering document provides guidance to all the stakeholders currently investigating and developing the bunkering of ships with fully refrigerated (-33°C) ammonia.

A range of potential hazards are expected with bunkering ammonia and to date there is very limited experience, with only one series of bunkering trials conducted as at March 2024.

As a result, Bunkering Guidelines for Ammonia draws primarily on the current experience of LNG bunkering, the wider ammonia marine transport industry and the shoreside ammonia production and transport industry experience.

“The overall aim of these guidelines is therefore to ensure that ammonia-fuelled ships are bunkered safely, reliably, efficiently and in an environmentally responsible way, targeting the avoidance of operational or fugitive emissions of ammonia,” SGMF added.

These publications have been compiled with extensive input from the SGMF membership, as well as with collaborative support from the Global Centre for Maritime Decarbonisation (GCMD) and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS).

Note: The bunkering guidelines are available in the shop on SGMF portal and the Emergency Response Guide for Ammonia can be downloaded through its free resources section.

Photo credit: SGMF
Published: 10 October, 2024

Technology

SIBCON 2024: TFG Marine to launch ZeroNorth e-BDNs in Singapore

‘We are excited to work with providers such as ZeroNorth to roll out eBDNs to our customers, not only in Singapore but across our global operations,’ says Kenneth Dam, TFG Marine Global Head of Bunkering.

Published

17 hours ago

October 10, 2024

Admin

SIBCON 2024: TFG Marine to launch ZeroNorth e-BDNs in Singapore

TFG Marine (TFG), the international marine fuel joint venture founded by Trafigura, Frontline and Golden Ocean, on Wednesday (9 October) said it will introduce ZeroNorth’s electronic bunker delivery notes (eBDNs) solution for its customers in Singapore by the end of the year.

Kenneth Dam, TFG Marine Global Head of Bunkering, made the announcement during the International Trade and Fuel Market Trends panel discussion at the 23rd Singapore International Bunkering Conference (SIBCON).

Dam said: “We are excited to work with providers such as ZeroNorth to roll out eBDNs to our customers, not only in Singapore but across our global operations.”

“This technology will help digitalise the bunker delivery process, reduce administrative burdens, enhance digital documentation, and contribute to a smarter, more connected bunkering sector.”

“We are committed to advocating for the adoption of eBDNs as a global standard for bunker fuel delivery.”

The fully digital solution, accessible through TFG Marine’s mobile app and integrated with SGTraDex digital infrastructure, will enable the inclusion of additional data, such as mass flow meter readings during fuel deliveries.

“This will drive substantial improvements in efficiency, accuracy, compliance, and sustainability across operations, complementing our global mass flow meter global rollout across our fleet and ensuring TFG Marine remains at the forefront of the bunkering industry,” the firm added.

Photo credit: TFG Marine
Published: 10 October, 2024