BIMCO Anti-Corruption Clause

The purpose of the new anti-corruption clause is to remove corruption from the shipping industry by providing a contractual platform to avoid corrupt actions. It attempts to balance the interests of owners and charterers, assisting them in working together when facing and resisting demands for illegal payments. Under the clause, if an official demands a facilitation payment from the Master or owner the charterers are to be notified as soon as possible. If the request is not withdrawn, despite taking reasonable steps to refuse the facilitation payment, the Master can issue a letter of protest to the charterers. It will be assumed that any delay to the vessel will be as a result of resisting the demand of payment and time lost will count as laytime/demurrage. A typical dispute our Members are therefore likely to face is charterers refusing to acknowledge that laytime continues to run whilst their vessel is being delayed due to the Master’s refusal to comply with a demand for a facilitation payment. It is important to note that owners will not be able to rely on the clause unless a letter of protest has been issued and therefore it is advisable to issue one as soon as it becomes evident that the illegal demand is not being withdrawn. The Master should ensure that any letter of protest is either addressed or copied to the charterers in order to be protected under the clause. The clause also applies where the Master is faced with a demand for gifts in kind, such as alcohol or cigarettes which are common in certain jurisdictions. For example, port authorities in certain areas of the world are known for making demands of say 50 cartons of cigarettes and 20 cases of beer in order to receive the necessary clearance. Although these demands may appear “minor”, under the anti-corruption clause the Master must refuse to comply with such a demand and, if it is not withdrawn, issue a letter of protest to the charterers in order to ensure that laytime continues to run.