Foreign Media: The United States Proposed to Charge Chinese Maritime Operators “Millions of Dollars” for Services!
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According to Reuters, the Office of the U.S. Trade Representative (USTR) is proposing to charge up to $1.5 million for Chinese-built ships entering U.S. ports as part of its investigation into China's growing “dominance” of the global shipbuilding, maritime and logistics sectors.
U.S. Proposed New Maritime Service Charges
1. Service Charges for Chinese Maritime Operators: For Chinese vessel operators, for the provision of international maritime transportation services, each time a vessel enters a U.S. port, the following charges will apply
(a) up to $1 million per vessel per entry into a U.S. port; or (b) up to $1,000 per net ton per net ton of the vessel.
2. Charges for services provided by a maritime operator with a fleet of Chinese-built vessels: When a Chinese-built vessel enters a U.S. port, a charge is assessed for international maritime transportation services provided by the vessel operator through the vessel.
(a) Up to $1.5 million;
(b) Charges based on the percentage of Chinese-built vessels in the operator's fleet: the operator will be charged up to $1 million per vessel per entry into a U.S. port if the percentage of Chinese-built vessels in the fleet is 50 percent or more; up to $750,000 per vessel per entry if the percentage is more than 25 percent but less than 50 percent; and up to $500,000 per vessel per entry if the percentage is more than 0 percent but less than 25 percent. (b) The maximum amount to be charged is US$1 million;
(c) If the number of Chinese-built vessels in the Operator's fleet is 25% or more, the Operator will also be charged up to an additional $1 million per vessel per entry into a U.S. port.
3. Service Charge for Ocean Carriers with Anticipated Orders for Chinese Vessels: An additional charge based on the percentage of vessels ordered from Chinese shipyards.
(a) If the percentage of vessels ordered or expected to be delivered from Chinese shipyards within the next 24 months is 50% or more, the operator will be charged up to $1 million per vessel per entry into a U.S. port; up to $750,000 per vessel per entry if the percentage is more than 25% but less than 50%; and up to $500,000 per vessel per entry if the percentage is more than 0% but less than 25%;
(b) If 25% or more of the total number of vessels ordered or expected to be delivered by the Operator in the next 24 months are from Chinese shipyards, the Operator will be charged up to $1 million per vessel per entry into a U.S. port.
4. Charge reduction for ocean transportation services using U.S.-built vessels: For the additional charges for ocean transportation services for operators described in this section, on a calendar year basis, if the operator provides international ocean transportation services through a U.S.-built vessel, the operator would be charged up to $1,000,000 each time the vessel enters a U.S. port.
[Proposed action for public comment in progress].
On February 21, 2025, according to a notice on the official website of the Office of the U.S. Trade Representative (USTR), it was noted that the office would invite public comment on the proposed Section 301 provision. The notice indicates that the provision is intended to eliminate China's dominant acts, policies, and practices against the maritime, logistics, and shipbuilding sectors. In this Section 301 investigation, U.S. trade law treats China's acts, policies, and practices as unreasonable and as imposing burdens or restrictions on U.S. commerce.
At the same time, the official website's notice states that in order to eliminate China's acts, policies, and practices, and in light of China's global market power in supplying, pricing, and accessing the maritime, logistics, and shipbuilding sectors, the USTR is proposing to impose certain fees and limitations on international maritime transportation services related to Chinese ship operators and Chinese-built vessels and to facilitate the transportation of U.S. goods on U.S. vessels. USTR invites comments from anyone interested in the proposed action.
On March 24, 2025, USTR will hold a public hearing on the proposed action in the main hearing room of the International Trade Commission. The deadline for submitting applications to appear at the hearing is March 10, 2025.