Jan De Nul Group contests detention of dredging vessel Zheng He in Mexico
On 1 November 2023, the Mexican foreign trade authorities conducted a search on the dredging vessel Zheng He and seized it, according to Jan De Nul's release.
According to these authorities, the vessel must be classified as foreign ’merchandise‘ and following such classification, she should have been imported into Mexico. With an experience of over 30 years activity in Mexico, Jan De Nul Group strongly contests the unrightful classification of the vessel as merchandise, which is both unlawful and unprecedented.
The vessel Zheng He is a highly specialized dredging vessel, flying the flag of the Grand Duchy of Luxembourg and is owned by the European Dredging Company SA, part of Jan De Nul Group.
The vessel Zheng He was contracted to execute various dredging projects in The Bahamas by the end of 2023 and in the course of 2024. However, to avoid the peaks of the hurricane season in The Bahamas, the vessel temporarily left The Bahamas to seek shelter in the Gulf of Mexico, with the intention to return to The Bahamas in December 2023. During this period, the Zheng He requested and was authorized by the competent Mexican authorities to make a stop-over in the Port of Tampico in Mexico for a crew change, garbage removal and preventive maintenance works on board. Such activities are common practice during a sea voyage and are as such recognised and protected under the United Nations Convention on the Law of the Sea (UNCLOS).
On 1 November 2023, during the port call in Tampico, the Mexican foreign trade authorities suddenly conducted a search on board of the Zheng He and seized the vessel. According to these Mexican authorities, the Zheng He must be classified as foreign ‘merchandise‘ and following such classification, she should have been imported into Mexico.
With an experience of over 30 years activity in Mexico, Jan De Nul Group strongly contests the unrightful classification of the vessel as merchandise, which is both unlawful and unprecedented.
Despite the various attempts undertaken by Jan De Nul Group to resolve the matter, both through local proceedings as through the diplomatic channels, the Zheng He remains detained in the Port of Tampico. On 14 February 2024, the Zheng He was even declared property of the Mexican Federal tax authorities, and in addition a tax fine was imposed of more than 1.6 billion MXN (today equivalent of 78 million EUR).
By judgement of 25 March 2024, a Mexican court ruled in favour of Jan De Nul Group, confirming that the Zheng He was legally present in the port of Tampico without the need of importation. The court additionally confirmed that there were irregularities during the vessel search on 1 November 2023. However, Jan De Nul Group did not succeed to obtain a release of the Zheng He following this judgement, despite various requests thereto.
The Grand Duchy of Luxembourg, as the vessel’s flag state, simultaneously initiated proceedings before the International Tribunal for the Law of the Sea (“ITLOS”), as part of the United Nations.
