Members have reported continued challenges in respect of vessels being subjected to substantial customs fines in Lebanon for alleged shortages of liquid bulk cargoes. With the assistance of Skuld Correspondent Maurice G. Mouracade & Co., the Association can provide the following update. On occasion local practice has been that the Lebanese Customs Authorities would not authorize a vessel to discharge her cargo unless a letter of undertaking had been signed over to them by the ship's agents prior to ship's arrival/discharge confirming that any Customs fines would be settled by them (the Agent) in due course, on behalf of the vessel. Where a shortage/overage exceeding the Customs' allowance is ascertained, following the official shore tanks' measurements, a fine will be imposed upon the Shipowner according to the applicable rates. The ship's local agents may thus need to ask for counter security from the Shipowner prior to the ship's sailing. In respect of the alleged shortage, the Lebanese Customs will only take into consideration the shore tanks' measurements figures as calculated and reported by the inspectors appointed by the Lebanese Ministry of Energy & Waters, who normally carry out their assignments autonomously under Customs' control. At present fines are levied by the Customs after granting the following allowances: 0.7% for shortlanded Gasoline 0.5% for shortlanded Jet A1 0.4% for shortlanded Gasoil / Diesel Oil 0.3% for shortlanded Fuel Oil 2% for any overlanding Since March 2012 Gasoil and Diesel oil have become exempted from VAT, hence any shortage exceeding the 0.4% customs allowance will be subject to a lump sum Customs' fine in the amount of LBP 100,000.- (i.e. USD 67). With regard to Fuel Oil destined to Government Corporations / Entities : Electricité du Liban (EDL) / Ministry of Energy and Water / Tripoli Oil Installations and Zahrani Oil Installations, no customs fine should be levied as these Government Concerns are meant to pay the VAT (