USTR RECOMMENDS FEES FOR CHINA BASED MARINE VESSEL OPERATORS

The United States Trade Representative (USTR) has proposed a series of new service fees and operational restrictions targeting Chinese maritime transport operators and carriers utilizing Chinese-built vessels. If enacted, these measures would impact vessel operators calling at U.S. ports, introducing financial penalties based on vessel ownership, fleet composition, and future shipbuilding orders.

UP TO $1.5 MILLION IN SERVICE FEES FOR CHINESE-BUILT AND OPERATED VESSELS

Under the proposal, vessel operators from China would face a service fee of up to $1,000,000 per vessel entrance to a U.S. port or $1,000 per net ton of vessel capacity. Additional fees would be imposed on carriers with Chinese-built vessels, following a tiered structure based on fleet composition:

• 50% or more Chinese-built vessels → Up to $1,000,000 per vessel entrance
• 25–50% Chinese-built vessels → Up to $750,000 per vessel entrance
• Less than 25% Chinese-built vessels → Up to $500,000 per vessel entrance

For individual Chinese-built vessels entering U.S. ports, operators could be charged up to $1,500,000 per entrance.

FEES EXTENDED TO OPERATORS WITH NEW CHINESE SHIPBUILDING ORDERS

The proposal also seeks to penalize operators with prospective orders from Chinese shipyards by introducing service fees based on upcoming vessel deliveries over the next 24 months.

Operators with:

• 50% or more of new vessel orders from Chinese shipyards → Up to $1,000,000 per vessel entrance
• 25–50% of new vessel orders from Chinese shipyards → Up to $750,000 per vessel entrance
• Less than 25% of new vessel orders from Chinese shipyards → Up to $500,000 per vessel entrance

Additionally, a separate $1,000,000 per vessel entrance fee could be applied to any operator with 25% or more of their total fleet composed of Chinese-built vessels.

POTENTIAL FEE REMISSIONS FOR U.S.-BUILT VESSELS

The USTR’s proposal outlines a possible refund mechanism for operators that invest in U.S.-built vessels. Carriers subject to these new service fees may receive refunds of up to $1,000,000 per entrance for each U.S.-built vessel they operate.

MANDATORY QUOTAS FOR U.S.-FLAGGED VESSELS EXPORTING U.S. GOODS

Beyond financial penalties, the proposal introduces new restrictions on international maritime transport for U.S. exports. Over the next seven years, a growing percentage of U.S. goods must be exported using U.S.-flagged vessels operated by U.S. carriers:

• Year 1: At least 1% of U.S. exports restricted to U.S.-flagged vessels
• Year 2: At least 3% of U.S. exports restricted to U.S.-flagged vessels
• Year 3: At least 5% of U.S. exports restricted to U.S.-flagged vessels (including 3% U.S.-built)
• Year 7: At least 15% of U.S. exports restricted to U.S.-flagged vessels (including 5% U.S.-built)

Additionally, operators may only use non-U.S.-built vessels for exports if they demonstrate that at least 20% of the U.S. products they transport are carried on U.S.-flagged, U.S.-built ships.

USTR SEEKS PUBLIC COMMENT AHEAD OF FINAL DECISION

The USTR is accepting public comments on the proposed service fees and operational restrictions through March 24, 2025, with the final decision resting with President Donald Trump. Stakeholders are invited to submit feedback on the economic impact, scope, and effectiveness of the measures, including the proposed fees, trade coverage, and service restrictions. Comments must be submitted via the USTR electronic portal (docket number USTR-2025-0002) to be considered.