Luxembourg accuses Mexico of illegal ship seizure at maritime tribunal

(CN) — Lawyers for the tiny Grand Duchy of Luxembourg told judges at the world’s top maritime tribunal on Thursday that Mexico has illegally seized a dredging vessel and demanded the ship and its crew be immediately released.

Mexico has held the Zheng He and the 36 sailors aboard since the Luxembourg-flagged ship docked for maintenance in the southern port city of Tampico last year, arguing the owner owes some $96 million in customs duties.

“There is no doubt that the exclusively nautical nature of the stopover was known to the port, including the customs officials,” Annabel Rossi, a lawyer with Luxembourg Maritime Administration, told the International Tribunal for the Law of the Sea.

Mexico contends the Zheng He should pay import duties and wants to confiscate the ship as part of the fine. The tax authorities determined that the vessel itself had been imported into Mexico, despite calling at the port only for maintenance and to rotate its crew.

In June, Luxembourg filed a complaint with the Hamburg-based tribunal, claiming the seizure violated the United Nations Convention on the Law of the Sea. The treaty, which established the tribunal in 1982, regulates maritime activity from boundary delimitation to use of natural resources.

In its complaint, Luxembourg asked the court to issue provisional measures, allowing the crew to leave the ship and prevent Mexico from moving the Zheng He, while the dispute is heard by the tribunal.

“Mexico’s rights could be undermined by Luxembourg’s requested provisional measures,” Alfonso Ascencio-Herrera, Mexico’s representative, told the 22-judge panel. He argued the proceedings have prevented Mexico from applying its own national laws in the port.

In March, the Tampico District Court struck down this assessment after the ship’s owners, Belgian-based civil engineering company Jan De Nul, appealed the decision. Mexico did not appeal the ruling, which became final in April. The judges ordered the Mexican authorities to release the ship.

Hearings will continue on Friday.

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