On April 17, 2025, the Office of the US Trade Representative (“USTR”) published a notice of action (the “USTR Notice”) implementing its port fee proposal, first announced on February 21, 2025. The rules differ substantially from the February proposal (summarized here). The calculation of the fees has changed to a net tonnage-based fee (or for certain vessels, based on containers discharged or Car Equivalent Units). Several points have been clarified. Specialized rules apply to LNG transportation and vehicle carriers, including fees and restrictions on non-Chinese vessels. The port fees are slated to go into effect beginning October 14, 2025, with rates increasing after such time on a phased schedule.
Summary of port fees
The USTR Notice implements the port fee mechanism by means of four non-cumulative “Annexes.”
Annex I – Fee on Chinese vessel operators and vessel owners
Annex II – Fee on Chinese-built vessels
Annex III – Fee on foreign-built vehicle carriers
Annex IV – Restriction on LNG exports
Operation and common provisions of Annexes
Notable changes to the proposed rules
The USTR differs substantially from the rules that had been proposed in February. Among the relevant changes are:
Questions and uncertainties
While the USTR Notice clarifies some uncertainties from the February proposal, significant questions remain. Among the questions that may be relevant are:
Next steps
The USTR Notice has a set timeframe, and the fee structure is scheduled to be implemented beginning October 14 unless the action is amended, delayed or successfully challenged. However, the USTR has scheduled another hearing for May 19. Those wishing to testify must sign up by May 8. Following this hearing, we may see further amendments /or clarifications to the fees.
(Watson Farley & Williams)
