USTR Announces Changes to Section 301 Shipbuilding Action
The Office of the U.S. Trade Representative (“USTR”) has announced modifications to certain aspects of the Section 301 response to China’s Targeting The Maritime, Logistics, And Shipbuilding Sectors For Dominance. The notice modifies port-entry fees and equipment tariffs announced in April and June 2025.
USTR’s October 10 notice makes three main changes to the Section 301 action:
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 (instead of using a car-equivalent unit), effective October 14, 2025;
2) removal (retroactive to April 17, 2025) of a provision that allowed suspension of liquefied‑natural‑gas export licenses when foreign‑built vessels were used; and
3) a 100 percent tariff on specified ship‑to‑shore cranes and other cargo‑handling equipment, effective November 9.
USTR also invites comments on proposed changes and additional modifications, with written comments due November 10, 2025. These include (1) adding a carve-out from fees for certain ethane and liquefied petroleum gas carriers under long-term charter; and (2) imposing additional tariffs of up to 150 percent on certain cargo-handling equipment (e.g., rubber-tire gantry cranes) and components of such equipment. While USTR evaluates public comments on these changes, the payment of certain service fees may be deferred through December 10, 2025.
An October 10 CSMS message (CSMS #66494339) confirmed fee amounts of $50 per net ton for vessels owned or operated by Chinese entities, $18 per net ton or $120 per container (whichever is higher) for Chinese‑built vessels, and $46 per net ton for foreign‑built vehicle carriers, all effective October 14, 2025. It reiterated that “the burden for determining if a vessel owes the fee is on the operator, NOT CBP.” No further updates have been issued since the time of this CSMS message, so until further CBP clarifications are made, vessel operators should comply with the most recent bulletin and keep abreast of CBP updates.
In response, China’s Ministry of Transport announced that starting October 14, U.S.-linked vessels that call at Chinese ports will be subject to additional port fees starting at 400 yuan per net ton, 640 yuan in 2026, and 880 yuan in 2027, with the total amount to be phased in by 2028.
Importers are encouraged to review the USTR notice and CBP guidance and evaluate whether and how the changes may affect their operations. Those impacted should submit comments by November 10. Vessel operators should comply with the prescribed fees, keep an eye out for additional guidance from CBP, and consider the opportunity to defer certain payments until December 10, 2025, if applicable. Please stay tuned for further updates.
