Pending the implementation of U.S. harbor duties on vessels connected to China, the Office of the United States Trade Representative (USTR) is proceeding with modifications to the measures concerning certain foreign-built vessels.
Specifically, according to a relevant announcement, the USTR will implement modifications to duties and penalties applied to foreign-built vehicle carriers, LNG carriers, and LPG carriers that call at American ports. In particular, starting October 14, the duties for foreign-built vehicle carriers will amount to $46 per net ton of capacity, compared to a duty of $150 per net ton of capacity initially proposed last April.
Concurrently, the USTR has repealed, retroactively from April 17, a provision that calls for the suspension of LNG export licenses if certain restrictions on the use of foreign-built vessels are not met. Furthermore, it added an exemption from duties for certain LPG carriers, which are committed under long-term time charter contracts.
As Reuters highlights, these moves constitute another “step back” from the USTR’s initial proposals for harbor duties. It is worth noting that, to a large extent, the USTR’s proposals have been weakened, amid pressures and concerns that the harbor duties would undermine the revival of the U.S. shipbuilding industry.
