Just days before they are slated to take effect, the Office of the U.S. Trade Representative announced several actual and proposed changes to new fees on Chinese-owned or -operated vessels, Chinese-built vessels, and foreign-built vehicle carriers entering U.S. ports.
These fees, which are to take effect Oct. 14 and are scheduled to increase significantly at regular intervals over the next three years, are being imposed following a determination by USTR 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.
According to USTR, significant aspects of the modifications being made include (1) changing the basis for calculating service fees on vessel operators of foreign-built vehicle carriers and setting the fee at $46 per net ton, effective Oct. 14, (2) eliminating, retroactive to April 17, a provision permitting the suspension of liquid natural gas export licenses if certain restrictions on the use of foreign-built vessels are not met, and (3) imposing tariffs of 100 percent on imports of certain ship-to-shore cranes and cargo handling equipment, effective Nov. 9.
USTR is also accepting comments through Nov. 10 on a proposal to make additional modifications, including (1) adding a carve-out from fees for certain ethane and liquid petroleum gas carriers under long-term charter (these fees may be deferred through Dec. 10 while USTR considers this change), (2) extending the fees to vessels up to 10,000 DWT through at least April 18, 2029, and (3) imposing additional tariffs of up to 150 percent on certain cargo handling equipment (e.g., rubber tire gantry cranes) and components thereof.
U.S. Customs and Border Protection recently stated that the vessel operator, not CBP, is responsible for determining if a vessel owes applicable fees. Operators must pay the applicable fee on or before the entry of the vessel at the first U.S. port or place from outside the customs territory on a particular voyage.
CBP strongly encourages responsible parties to pay fees prior to vessel arrival as vessels without proof of payment will be subject to denial of lading or unlading operations, or granting of clearance withheld, until proof of payment can be verified. CBP recommends that operators initiate payment at least three business days in advance of vessel arrival.
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