On April 17, 2025, the U.S. Trade Representative (USTR) announced a series of fees and restrictions intended to address China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance. The announcement follows the USTR’s year-long investigation into China’s acts, policies, and practices under Section 301 of the Trade Act of 1974.
Maritime transport services fees
Effective October 14, 2025, the following maritime transport services fees will apply:
- Fee on Chinese vessel operators and vessel owners: On or before the vessel arrives at the first U.S. port[1] or place from outside the Customs territory on a particular string, the vessel operator must pay a per net ton fee on the arriving vessel if the vessel operator or owner is Chinese. The fee will be charged up to five times per year, per vessel.
- Fee on operators of Chinese-built vessels: Non-Chinese vessel operators must pay the higher of a per net ton or per container[2] discharged fee when a Chinese-built vessel arrives to a U.S. port or point from outside the Customs territory on a particular string. The fee will be charged up to five times per year, per vessel.
- Fee on operators of foreign-built vehicle carriers: On or before a foreign-built vehicle carrier arrives at the first U.S. port or place from outside the Customs territory, the vessel operator must pay a fee of $150 per Car Equivalent Unit capacity.
Except for the fee on vessel operators of foreign-built vehicle carriers, the fee amounts will increase annually according to the following schedule:
Fee | Amount starting Oct. 14, 2025 | Amount starting Apr. 17, 2026 | Amount starting Apr. 17, 2027 | Amount starting Apr. 17, 2028 |
Chinese vessel operators and vessel owners | $50 per net ton | $80 per net ton | $110 per net ton | $140 per net ton |
Operators of Chinese-built vessels | Higher of (a) $18 per net ton or (b) $120 for each container discharged | Higher of (a) $23 per net ton or (b) $153 for each container discharged | Higher of (a) $28 per net ton or (b) $195 for each container discharged | Higher of (a) $33 per net ton or (b) $250 for each container discharged |
Restrictions on the transport of LNG exports from the United States
Effective April 17, 2028, a certain percentage of all liquefied natural gas (LNG) for exportation by vessel in a calendar year must be exported by a U.S.-built, U.S. flagged, and U.S.-operated vessel. The restriction will increase by 1% to 2% every one to three years until it reaches 15% in 2047.
The percentage of LNG is determined based on the prior calendar year’s total LNG (in cubic feet) exported by maritime transport, as reported by the Department of Energy. If the restrictions are not met, the USTR may direct the suspension of LNG export licenses until industry complies.
Exceptions
The following exceptions apply:
- Suspension of fees: Subject to certain conditions, U.S. Customs and Border Protection (CBP) will suspend the fees on operators of Chinese-built vessels or foreign-built vehicle carriers for a period not to exceed three years if the vessel owner orders and takes delivery of a U.S.-built vessel[3] of equivalent or greater capacity, measured in tonnage for vessels and CEU for vehicle carriers. If a prospective vessel owner does not take delivery of the U.S.-built vessel ordered within three years, however, the applicable fees will become due immediately. Proof of the order must be provided on demand.
- Suspension of LNG restrictions: The LNG restrictions will also not apply to a particular vessel for a period not to exceed three years if the vessel owner orders and takes delivery of a U.S.-built vessel of equivalent or greater LNG capacity. The fees will, however, become due immediately if the prospective vessel owner does not take delivery of the U.S.-built vessel ordered within three years.
- Exclusion from fees on operators of Chinese-built vessels: The fees on operators of Chinese-built vessels do not apply to U.S. government cargo. The fees also do not apply to the following Chinese-built vessels: (a) U.S.-owned or U.S.-flagged vessels enrolled in the Voluntary Intermodal Sealift Agreement, the Maritime Security Program, the Tanker Security Program, or the Cable Security Program; (b) vessels arriving empty or in ballast; (c) vessels with a capacity of equal to or less than 4,000 Twenty-Foot Equivalent Units, 55,000 deadweight tons, or an individual bulk capacity of 80,000 deadweight tons; (d) vessels entering a U.S. port in the continental United States from a voyage of less than 2,000 nautical miles from a foreign port or point; (e) U.S.-owned vessels, where the U.S. entity owning the vessel is controlled by U.S. persons and is at least 75% beneficially owned by U.S. persons; (f) specialized or special purpose-built vessels for the transport of chemical substances in bulk liquid forms; and (g) vessels principally identified as “Lakers Vessels” on CBP Form 1300.
Key definitions
“Chinese-built vessel” means a vessel that was built in China, consistent with the definition of place of build in CBP and U.S. Coast Guard regulations, and that would be so identified on the Vessel Entrance or Clearance Statement (CBP Form 1300).
“Chinese vessel operator” and “Chinese vessel owner” mean any entity:
- Whose country of citizenship is defined as China, Hong Kong, or Macau on the Vessel Entrance or Clearance Statement or its electronic equivalent.
- Whose headquarters, parent entity’s headquarters, or parent entity’s principal place of business is China, Hong Kong, or Macau.
- That is owned or controlled by a citizen or citizens of China, Hong Kong, or Macau.
- That is owned by, controlled by, or subject to the jurisdiction or direction of China, Hong Kong, or Macau. An entity is owned by, controlled by, or subject to the jurisdiction or direction of China, Hong Kong, or Macau where: (a) the entity is a national or resident of one of those jurisdictions; (b) the entity is organized under the laws of or has its principal place of business in one of those jurisdictions; (c) 25% or more of the entity’s outstanding voting interests, board seats, or equity interests are held directly or indirectly by any combination of the governments of those jurisdictions; or (d) 25% or more of the entity’s outstanding voting interests, board seats, or equity interests are held directly or indirectly by any combination of persons who fall within (a)-(c).
- That is owned or controlled by an entity listed on the Chinese Military Company List.
- That is an ocean carrier[4] whose operating assets are, directly or indirectly, owned or controlled by the Chinese government or any of its political subdivisions, with ownership or control by a government being deemed to exist for a carrier if: (a) a majority of the interest in the carrier is owned or controlled in any manner by the Chinese government, a Chinese government agency, or a public or private person controlled by the Chinese government; or (b) the Chinese government or any of its political subdivisions has the right to appoint or disapprove the appointment of a majority of the directors, the chief operating officer, or the chief executive officer of the carrier.
[1] See 19 C.F.R. § 101.3(b)(1).
[2] See id. § 10.41a.
[3] As defined in the Federal Register notice.
[4] See 46 U.S.C. § 40102(7).