Good Day,

Background

The Chamber of Shipping of America has advised that the U.S. Administration is preparing to issue an Executive Order aimed at revitalising the U.S. shipbuilding industry.

The draft Executive Order (attached) titled “Make Shipbuilding Great Again,” outlines a comprehensive plan to enhance U.S. shipbuilding capacity, invest in cutting-edge technologies and cultivate a highly skilled maritime workforce.

The draft order also includes measures to address China’s alleged unfair trade practices in the maritime, logistics and shipbuilding sectors.

Key provisions include:
− Imposing tonnage-based fees on Chinese-built or flagged vessels docking in U.S. ports;
− Enforcing the collection of Harbor Maintenance Tax (HMT) on foreign-origin cargo entering the U.S. through Canada or Mexico;
− Launching a Section 232 investigation into the national security impacts of China’s targeting of U.S. maritime industries; and
− Establishing a Maritime Security Trust Fund to support domestic shipbuilding and maritime capabilities.

The draft Executive Order is currently undergoing interagency review, with the final clearance date unknown. The document suggests that the decision to impose port fees may have already been made(though details on quantum are not included in this document) and will become final once the President signs it. Based on the draft text, the USTR will have no more than 180 days to implement the port fee collection program, if it is approved.

Next Steps
The Secretariat will monitor developments closely and coordinate with the International Chamber of Shipping, the Chamber of Shipping of America and other international associations.

Members are invited to review the attached draft Executive Order and join the webinar being arranged by ICS for which a separate circular has been sent.

Make Shipbuilding Great Again Draft Executive Order