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The Maritime and Port Authority of Singapore (MPA) has issued a statement regarding the introduction of new port dues concessions from 1 April 2009.

In the statement, the MPA includes a series of frequently asked questions (FAQ's) regarding the 10 percent port dues concession for all ocean-going vessels with a port stay of not more than 10 days.

The 10 percent concession is one of two additional measures introduced by the MPA to help the shipping industry during the current economic downturn.

The second measure is a 20 per cent port dues concession for harbour craft engaged in commercial activities within Singapore port waters. It seeks to lower the business costs of port and marine services providers, such as bunker suppliers, ship chandlers, tug boat operators and domestic ferry operators.

The MPA's seven FAQ's have been included below.

Q1: Container ships with port stay of not more than 10 days currently enjoy 20% port dues concession. Will the additional 10% concession be on the gross amount of port dues charged or on the net amount of port dues charged?

Answer: The additional 10% concession will be on the net amount of port dues charged (i.e. on the remaining port dues after the 20% concession given for container ships).

Q2: Under the Special Bunkering Anchorage Scheme, vessels are accorded concessionary port dues rate of $1.00/100 GT or part thereof. Will such vessels still enjoy the 10% port dues concession?

Answer: Yes. This will be on the $1.00/100GT rate.

Q3: If my vessel is eligible for the 50% port dues concession for maiden voyage, will it still enjoy the additional 10% port dues concession?

Answer: Yes. The vessel will enjoy the additional 10% concession on the final net amount of port dues charged (i.e. on the remaining port dues after lessing the 50% concession given for the maiden voyage call). If this vessel is a container ship, it will also enjoy another 20% concession (e.g. Gross Port Dues is $100; 50% maiden voyage concession = $100 x 50% = $50; next, 20% container ship concession = $50 x 20% = $10; finally, additional 10% concession = $40 x 10% = $4; therefore, net port dues payable would be $100-$50-$10-$4 = $36).

Q4: Will vessels on the annual port dues scheme enjoy the 10% port dues concession?

Answer: Yes. If the annual dues period start date falls within the validity period of the concession scheme, the vessel will enjoy the 10% port dues concession. As the validity of this 10% concession is for a year, all vessels on annual port dues scheme should benefit from these concession on their renewal.

Q5: My vessel has paid annual port dues covering the period 01 Jan 2009 to 31 Dec 2009 and the 10% port dues concession scheme kicks in only on 01 Apr 2009. Will this vessel be entitled to the 10% port dues concession for the 9 months from 01 Apr 2009 to 31 Dec 2009?

Answer: As the scheme is only starting on 01 Apr 2009, the port dues concession will not be pro-rated. However, this vessel will enjoy the 10% port dues concession when it renews the annual port dues a year later on 01 Jan 2010.

Q6: How will the 10% port dues concession be reflected in MPA’s tax invoice?

Answer: Concession will be shown separately as a line on the tax invoice. It will be total port dues minus concessions. Each concession transaction is listed separately.

Q7: I am the arrival agent for the vessel. There will be a handover of agency to another agent in 3 days’ time. Will my agency get to enjoy the 10% port dues concession?

Answer: For cases involving change of agency during vessel’s call in Singapore, only the departing agent will enjoy the 10% port dues rebate. The arriving agent will not enjoy the 10% port dues rebate as it has not been determined whether the vessel has fulfilled the condition of port stay not exceeding 10 days.