Policy & Compliance
The US Trade Representative is implementing taxes and regulations to combat China’s strategic efforts to dominate the maritime, logistics and shipbuilding sectors Update on US charges on Chinese-built vessels
T he US Trade Representative (USTR) on 17 April 2025 announced its fi nal proposed measures regarding fees to be charged on Chinese-linked ships. By way of background, during the last year of the Biden Administration on 12 March 2024, multiple US labour unions filed a strategic efforts to dominate the maritime, logistics and shipbuilding sectors significantly disadvantaged US companies and workers. The USTR’s investigation concluded that China’s actions are unreasonable and a burden to US commerce. The investigation concluded, in January 2025, that responsive action is necessary. By then Trump had been elected to the presidency and announced the imposition of tariffs on imported goods and significant levies on foreign-owned and built ships. petition with the USTR. The complaint was that China’s The USTR received nearly 600 comments in response to the proposed actions and held public hearings in March 2025. The USTR proceeded to implement the proposed actions, as well as new proposed actions, with a number of modifications/exemptions that watered down the original proposal. Also, there is now a two- stage phased implementation period to give parties time to adjust to the changes. First phase The US will be imposing a net tonnage tax: • Beginning 14 October 2025, a fee will be imposed on the entry of a Chinese-owned or operated vessel (regardless of where it was built) into a US port at a rate of $50 per net ton. The rate will be increased incrementally
beginning in April 2026, plateauing at $140 per net ton in April 2028. • Beginning 14 October 2025, a fee will be imposed on the entry of a Chinese-built vessel that is not operated by a Chinese owner into a US port at a rate of $18 per net ton. The rate will be increased incrementally beginning in April 2026, plateauing at $33 per net ton in April 2028. For container vessels the following applies: • An alternate rate will be imposed (if higher than the tonnage rate) calculated on the basis of containers discharged, starting at $120 per container, and plateauing at $250 per container in April 2028. The USTR decided not to impose fees based on how many Chinese- built ships are in a fleet or based on prospective orders of Chinese ships, as it had originally proposed. Second phase • This relates to the proportion of liquid natural gas that must be carried in US-built ships. Beginning 17 April 2028, at least 1% of all LNG intended for exportation by vessel in a calendar year must be exported by a US-built vessel. This percentage increases annually, plateauing at 15% in April 2047. Fees on vehicle carrying vessels The USTR will impose a port call fee against foreign-built vehicle carriers based on car equivalent unit (CEU) capacity. This section targets “non- US built vessels” more broadly. This fee is to be assessed against vehicle carriers at a rate of $150/CEU, beginning on 14 October 2025. Fee remission is available for up
to three years to owners of non-US- built vessel carriers if those owners order and take delivery of a US-built vessel of equivalent or greater capacity within that time period. Exemptions and exclusions There are several exceptions to the imposition of the fees, including for vessels arriving to the US empty or in ballast, certain small vessels, certain US-owned vessels, vessels entering the continental US from a voyage of less than 2,000 nautical miles, and certain specialised vessels. To limit potential impacts on smaller ports, USTR confirmed that the fee will not be imposed at every port of call but only at the first port of entry from a foreign destination. Also, it will be capped at five assessments per vessel per annum (this easement is not applicable to vehicle carrying vessels). The effects of these charges are still to be felt; it is noteworthy that they are to be imposed on all overseas-built vessels. However, Chinese-owned and operated vessels are particularly targeted. The two lines that will be most affected, in all probability, are COSCO and OOCL. When considering this matter, the reader should remember that in 2024, 30% of all vessels arriving in the US were Chinese built, although there were variations between types of trade; for instance, 54% of general cargo vessels, 30% of container vessels but only 18% of vehicle carriers were Chinese built. It is fair to say that shippers have
“ Beginning 14 October 2025, a fee will be imposed on the entry of a Chinese- owned or operated vessel (regardless of where it was built) into a US port at a rate of $50 per net ton
22 | June 2025
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