Dubai directs service providers to declare local sea container charges

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  • Effective from 1st May 2023, the new directive will provide the DMA with a clear data-led understanding of local sea container charges and associated practices, WAM reported.
  • The directive applies to all service providers providing local sea container services within, outside, or through any port in the emirate.

Dubai, UAE — Container service providers in Dubai will now be required to declare their local sea container charges to the Dubai Maritime Authority through the Dubai Trade Single Window Portal.

The requirement came into effect after DMA introduced Directive No 1 of 2023 on Transparency of Local Sea Container Charges in Dubai.

Effective from 1st May 2023, the new directive will provide the DMA with a clear data-led understanding of local sea container charges and associated practices, WAM reported.

The directive was developed in response to feedback generated by the DMA’s Partnership Programme, a stakeholder engagement program introduced to help the Authority understand the needs of service providers and Beneficial Cargo Owners (BCOs) in the sector.

The program commenced in March with an event to introduce the DMA’s new mandate, followed by a series of interactive workshops and a market survey focusing on better understanding the sector’s needs. The procedures outlined in the directive are based on a study conducted by the DMA to determine international best practices as part of the Authority’s efforts to enhance transparency and agility, raise ease of doing business and enhance Dubai’s attractiveness as a maritime hub, the report said.

Sheikh Saeed bin Ahmed bin Khalifa Al Maktoum, Executive Director of Dubai Maritime Authority, said, “The newly introduced directive is based on a thorough study we conducted as part of efforts to consolidate Dubai’s status as a global maritime hub, enhance the transparency and cost-visibility of local sea container charges, and ultimately boost the sector’s investment attractiveness. Introducing the directive will allow us to analyze data submitted by service providers and determine whether they reflect commercial best practices and fair competition, which we are tasked with promoting in Dubai’s maritime sector.”

The directive applies to all service providers providing local sea container services within, outside, or through any port in the emirate. This includes existing service providers who, as of the effective date, are already licensed by a licensing authority in Dubai, including the Department of Economy and Tourism, or special development zones and free zones, such as the Dubai International Financial Centre Authority, to provide sea container services.

It also applies to new service providers, who will become licensed on or after the effective date. In this case, the directive applies to sea container charges that the provider intends to apply from the date that the provider becomes licensed to provide sea container services. Details of sea container charges should be submitted to the Authority under Article 5 (2) of the directive.

All existing service providers must submit a list of their existing local sea container charges to the Authority within 30 days of the directive’s effective date, while new service providers must submit a list of all their existing sea container charges within 30 days of first being licensed.

The directive requires service providers to file all their local sea container charges online via the Dubai Trade Single Window Portal, in accordance with procedures and requirements within 30 days of the publication of the directive.

From the effective date of this directive, all service providers are prohibited from increasing their existing sea container charges in any way. For example, a service provider may increase its sea container charges strictly to reflect new or increased Authority, Port Operator or government charges, provided such an increase does not include any charges or amounts for their account. The freeze on service charges will apply until further notice.

Service Providers are required to upload all of their existing local sea container charges onto the Dubai Trade Single Window Portal, in addition to any other information or document that the DMA may require from time to time. To comply with Directive No. 1, service providers are required to declare all local charges using the sea container charges acronyms, codes, names, and descriptions. If any charges are not listed, the service providers must declare these using the additional ‘miscellaneous’ option provided within the portal.

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