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Market Matters Blog           10/13 08:15

   As USTR Fees on Chinese Ships Near Implementation, China Hits Back

   China surprised the USTR when on Friday, Oct. 10, they announced retaliatory 
U.S ship fees to begin the same day USTR Chinese ship fees were to commence.

Mary Kennedy
DTN Basis Analyst

   As the Oct. 14 date to begin U.S.-imposed port fees on Chinese-owned or 
Chinese-built vessels nears, on Friday, Oct. 10, China's Ministry of Transport 
announced the country will charge special port fees on ships owned or operated 
by U.S. enterprises, organizations and individuals starting Oct. 14.

   USTR SECTION 301 SHIP FEES

   On April 17, 2025, the United States Trade Representative (USTR) announced 
on their website they were taking targeted action to "restore American 
shipbuilding and address China's unreasonable acts, policies, and practices to 
dominate the maritime, logistics, and shipbuilding sectors."

   After several public comment periods since the first announcement, USTR 
announced on Oct. 10, 2025, "Considering the public comments and the advice of 
the Section 301 Committee, the U.S. Trade Representative has determined to 
change the basis and rate of the service fee on vessel operators of 
foreign-built vehicle carriers. The U.S. Trade Representative has determined to 
change the basis of the service fee from a Car Equivalent Unit standard to net 
tons."

   Regarding the fee rate, USTR in a press release said they determined to set 
the service fee rate to $46 (from $50) per net ton as of Oct. 14, 2025, and 
limit the total collection of this service fee to five times per calendar year, 
per vessel. "These modifications will address concerns regarding unfair 
manipulation of a Car Equivalent Unit and the establishment of a net ton rate 
that is too low, which would limit the effectiveness of the action, and will 
provide additional leverage to encourage China to eliminate the investigated 
acts, policies, and practices," said USTR in the Oct. 10 press release. Here is 
the USTR press release from Oct. 10 with the modifications and the deadline to 
submit comments on the modifications: 
https://ustr.gov/about/policy-offices/press-office/press-releases/2025/october/u
str-modifies-certain-aspects-section-301-ships-action-and-proposes-further-modif
ications-action.

   The unpublished version of  modifications to certain aspects of the entire 
responsive action (to restore American shipbuilding that USTR took on April 17, 
2025) mentioned in the Oct. 10 press release can be found here: 
https://ustr.gov/sites/default/files/files/Press/Releases/2025/301%20Ships%20Act
ion%20Mod%20FRN.pdf.

   In addition, the U.S. Customs and Border Protection (CBP) on Oct. 3 put out 
a notice that payments of fees must be made directly through the Department of 
Treasury's secure, official Pay.gov website and not at the Port of Entry. 
Vessels will need proof of payment, or they may be denied permission to unload 
and/or load. Here is a link to the notice but it does not contain the Oct. 10 
update on fees. However, it does explain the payment process: 
https://content.govdelivery.com/bulletins/gd/USDHSCBP-3f59908?wgt_ref=USDHSCBP_W
IDGET_2.

   CHINA RETALIATES

   On Oct. 10, 2025, the Chinese Ministry of Transport announced they will 
impose special port fees on U.S. linked vessels beginning Oct. 14. In response 
to the April 17, 2025, announcement by USTR to that as of Oct. 14, 2025, port 
service fees will be added to ships owned or operated by Chinese companies, 
Chinese-flagged ships and Chinese-built ships. "This seriously violates the 
relevant principles of international trade and the China-U.S. Maritime Shipping 
Agreement and causes serious damage to maritime trade between China and the 
United States," noted the announcement.

   The Ministry of Transport said, "In accordance with the 'Regulations of the 
People's Republic of China on International Maritime Transport' and other laws 
and regulations and basic principles of international law, and with the 
approval of the State Council, effective Oct. 14, 2025, special port fees will 
be collected by the maritime administration of the port where the ship is 
located for ships owned by U.S. enterprises, other organizations, and 
individuals; ships operated by U.S. enterprises, other organizations, and 
individuals; ships owned or operated by enterprises or other organizations in 
which U.S. enterprises, other organizations, and individuals directly or 
indirectly hold 25% or more of the equity (voting rights, board seats); ships 
flying the U.S. flag; and ships built in the United States. The relevant 
matters are announced as follows:

   1. For the above-mentioned vessels, special port fees will be collected on a 
voyage basis, implemented in stages, with the specific collection standards as 
follows (voyages less than 1 net ton will be calculated as 1 net ton).

   2. From Oct. 14, 2025, for vessels calling at Chinese ports, a fee of RMB 
(Chinese Yuan Renminbi) 400 per net ton will be charged.

   3. Starting from April 17, 2026, vessels calling at Chinese ports will be 
charged RMB 640 per net ton.

   4. Starting from April 17, 2027, vessels calling at Chinese ports will be 
charged RMB 880 per net ton.

   5. From April 17, 2028, vessels calling at Chinese ports will be charged RMB 
1,120 per net ton.

   "If a vessel calls at multiple Chinese ports on the same voyage, it shall 
pay the special port dues only at the first port of call and shall not be 
charged at subsequent ports of call. Special port dues may not be charged for 
more than five voyages of the same vessel in a year, according to the 
statement. The Ministry of Transport department will formulate specific 
implementation measures."

   Here is the conversion of Chinese Yuan RMB to USD as of Oct. 11, 2025, from 
Forbes Currency converter:

   *400 Chinese Yuan equals 56.14 United States Dollar

   *640 Chinese Yuan equals 89.82 USD

   *880 Chinese Yuan equals 123.50 USD

   *1,120 Chinese Yuan equals 157.19 USD

   (1 CNY=0.140351 USD Oct. 11, 2025)

   According to the China Daily in an article on Oct. 10, the ministry added, 
"China urges the United States to immediately correct its wrongdoings and cease 
its unwarranted suppression of China's maritime industry."

   Mary Kennedy can be reached at Mary.Kennedy@dtn.com

   Follow her on social platform X @MaryCKenn




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