Imports using Chinese-built ships may cost more under USTR proposal

This follows its announcement last month that China’s targeting of the maritime, logistics and shipbuilding sectors for dominance is unreasonable and burdens or restricts US commerce and is, therefore, actionable under the Section 301 trade law.

Indian trade could be adversely hit if the proposal comes into force.

The USTR said the US administration would charge Chinese-owned cargo ships as well as third-country flagged vessels built in China $1 million or more per port-of-call in the United States. Over half of all ships delivered globally in 2024 were built in China.

Chinese vessel operators will be charged a flat fee of $1 million, or a fee of $1,000 per net tonne of vessel capacity, per vessel entrance to a US port. Operators of Chinese-built vessels will be charged a flat fee of up to $1.5 million, or $500,000 to $1 million based on the percentage of Chinese-built vessels in the operator’s fleet, per entrance.

Maritime transport operators will be charged an additional fee of $500,000 to $1 million per vessel entrance based on the percentage of vessels ordered from Chinese shipyards.

A certain percentage of US goods exported by vessels needs to be exported on US-flagged vessels by US operators each year: 1 per cent immediately, 3 per cent within two years, 5 per cent within three years and 15 per cent within seven years.

US goods will be exported on US-flagged, US-built vessels, but export on non-US-built vessels will be allowed provided the operator demonstrates that at least 20 per cent of US products will be transported annually on US- flagged, US-built ships.

A public hearing on these options will be held March 24 and requests to appear are due by March 10. Public comments are also due by March 24.

ALCHEMPro News Desk (DS)