Imports via Chinese-Built Ships to Cost More Starting This Fall

The Office of the U.S. Trade Representative has announced the following measures involving cargo ships operated by or built in China following USTR’s announcement in January that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce and is therefore actionable under the Section 301 trade law. Note that these actions differ in some significant respects from those proposed by USTR in February.

Click here for more information on USTR’s Section 301 investigation.

Fees

Chinese-owned or -operated vessels

Any vessel with a Chinese operator or owned by an entity of China (except liquefied natural gas carriers and vehicle carriers; see below) will be assessed a fee on or before entry into a U.S. port.

Given the potential impacts to small ports if this fee were to be assessed at each port of call, the fee will be assessed (1) upon entry at the first U.S. port or place from a foreign destination per rotation or string of U.S. port calls, (2) at the first U.S. port within the U.S. customs territory, and (3) no more than five times a year on an individual vessel.

Chinese-built vessels

Non-Chinese operators of Chinese-built vessels will pay the higher of the per ton or per container fees set forth below upon the arrival of such vessels into a U.S. port.

OR

This fee will also be assessed (1) upon entry at the first U.S. port or place from a foreign destination per rotation or string of U.S. port calls, (2) at the first U.S. port within the U.S. customs territory, and (3) no more than five times a year on an individual vessel.

However, the fee may be suspended for a particular vessel for up to three years if the vessel owner orders and takes delivery of a U.S.-built vessel of equivalent or greater tonnage within that period. In addition, there are a number of exemptions from this fee, including for vessels below certain size or capacity thresholds, vessels engaged in short sea shipping, and certain U.S.-owned companies’ vessels.

Vehicle carriers

Beginning Oct. 14, 2025, foreign-built vehicle carrier vessels will be required to pay $150 per car equivalent unit capacity on or before entry into a U.S. port. This fee may be suspended for a particular vessel for up to three years if the vessel owner orders and takes delivery of a U.S.-built vessel of equivalent or greater CEU within that period.

LNG carriers

From April 17, 2028, to April 16, 2029, one percent of liquefied natural gas intended for exportation by vessel in a calendar year must be exported on U.S.-flagged and -operated vessels.

Beginning April 17, 2029, one percent of LNG exports must be exported by U.S.-built, -flagged, and operated vessels, and that amount will increase incrementally to 15 percent as of April 17, 2047.

These restrictions will not apply to a particular vessel for up to three years if the vessel owner orders and takes delivery of a U.S.-built LNG vessel of equivalent or greater capacity within that time.

Tariffs

USTR is seeking public comments through May 19 on a proposal to impose additional tariffs (i.e., in addition to all other applicable duties, taxes, and fees already in place) on (1) ship-to-shore cranes manufactured, assembled, or made using components of Chinese origin, or manufactured anywhere in the world by a company owned, controlled, or substantially influenced by a Chinese national, and (2) certain cargo handling equipment of China.

Other

Readers are reminded that additional fees and/or other restrictions on inbound ships are still possible as a result of an ongoing investigation by the Federal Maritime Commission as well as the federal agency actions directed by an April 9 executive order.