USTR SECTION 301 INVESTIGATION OF CHINESE SHIPBUILDING - PROPOSED REMEDIES
As all of you must be aware, the USTR published proposed remedies to address the investigation outcomes.
As you may recall, on 16 January 2025, the USTR issued its findings from the investigation, concluding that China’s targeted dominance in the maritime, logistics, and shipbuilding sectors is unreasonable, burdens or restricts U.S. commerce, and is, therefore, “actionable” under Section 301 of the Trade Act of 1974.
On 21 February, the USTR published proposed remedies to address the investigation outcomes and is seeking public comment on the proposed actions. The Federal Register Notice is attached.
The proposed remedies include a fee to be imposed on operators engaged in international maritime transport entering US ports on Chinese built vessels. The imposed port entry fee rate will be up to $1,500,000, depending on the percentage of Chinese-built vessels in the fleet of the operator.
In addition, a service fee of up to $1,000,000 per vessel entrance to a U.S. port, is proposed on maritime transport operators with prospective orders for Chinese vessels, depending on the percentage of operator’s vessel orders in Chinese shipyards over the next 24 months.
The specific fees associated with the percentage of vessel ownership and percentage of vessels on order from Chinese shipyards, are contained in the attachment.
The USTR will hold an in-person public hearing at the International Trade Commission in Washington, DC, on March 24. The deadline to submit written comments is 24 March, and the deadline to request to appear at the hearing is the 10th of March.
The Secretariat is liaising closely with the International Chamber of Shipping and, in turn, with the Chamber of Shipping of America (CSA), the World Shipping Council (WSC), the Consultative Shipping Group (CSG), ECSA, and other international associations on the next steps and a coordinated response.
Members are invited to direct any comments to the undersigned for further discussion with ICS.