The Office of the U.S. Trade Representative is accepting comments through July 7 on the following potential modifications of certain aspects of the trade actions associated with its Section 301 investigation of China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance.
Vehicle carriers. USTR has previously stated that, 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.
USTR has now determined to propose modifications to (1) provide for a targeted coverage provision pertaining to vessels in the Maritime Security Program, which reduces dependence on China, and (2) change the basis of the fee from car equivalent units to net tonnage, “which is appropriate to address administrability and in light of the potential for fee evasion.” Comments are invited on the implications (and suggested duration) of the targeted coverage provision as well as the potential impact of the fee change.
LNG carriers. USTR has previously established that 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.
USTR has now determined to propose eliminating, retroactive to April 17, 2025, the paragraph under which USTR may direct the suspension of LNG export licenses until certain terms are met. USTR is also considering changing certain data reporting requirements and applying restrictions related to LNG carriers to vessel owners or operators.
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