Port Alert
Long Beach, CA / Southern CA
October 10, 2025
Notices
As most of you are aware, the proposed USTR Fees targeting China’s maritime/shipbuilding sectors remain scheduled to take effect on Tuesday, October 14, 2025. While more details are beginning to take shape, there remains very little formal guidance to rely on from either USTR or CBP. We have been in regular communication with our representatives at various industry groups (BIMCO, ASBA, Chamber of Shipping, Greater Houston Port Bureau, etc.) but they are likewise waiting for more information and answers to address the multitude of critical questions/practical concerns being raised.
The following is a high-level recap of what we currently know, as well as Moran’s position on some key points. We are currently advising all clients (per CBP direction) that the vessel operator bears primary responsibility for submitting any USTR payments to CBP and same is not to go through agent.
USTR Section 301 Vessel Fees
The following is a high-level recap of what we currently know, as well as Moran’s position on some key points. We are currently advising all clients (per CBP direction) that the vessel operator bears primary responsibility for submitting any USTR payments to CBP and same is not to go through agent.
USTR Section 301 Vessel Fees
The U.S. government is implementing a new fee regime under Section 301, targeting China’s maritime, logistics, and shipbuilding sectors. These rules are proposed by the Office of the U.S. Trade Representative but will be administered by U.S. Customs and Border Protection (CBP). Vessel operators will be subject to only one of the three fee structures (if applicable), which are detailed in Annex I, II, and III of the USTR notice.
Applicability Overview
Applicability Overview
Who is affected:
- Vessels owned or operated by Chinese entities (Annex I)
- Vessels built in China, regardless of current owner (Annex II)
- All foreign-built Ro-Ro and vehicle carriers (Annex III)
Annex I
Fee on Chinese vessel operators and vessel owners.
- The government will assess a service fee on any vessel entered into a US port that has a Chinese operator or that is owned by an entity in China. The fee is assessed on the net tonnage of the vessel and will increase over time. The fee will begin at $50 per net ton.
- CBP will determine Owner Nationality from the Ship’s Registry Certificate; the operator’s nationality will come from the Certificate of Financial Responsibility (COFR).
- LNG Vessels may be exempt under certain conditions (to be confirmed).
Annex II
Fee on Chinese-built vessels.
- A service fee will be assessed on U.S. port entries by Chinese-built vessels (other than vehicle carriers, LNG tankers, vessels subject to Annex I, or vessels that are otherwise exempt under Annex II).
- The fee per net ton would begin at $18 on October 14, 2025, and increase each year on April 17 to a final total of $33 per net ton on April 17, 2028.
- Annex II includes several significant exceptions for Chinese-built vessels under certain circumstances, which exempt most trade within North America, many US-owned ships, and certain smaller size classes of vessels.
- The exceptions for Chinese-built vessels include:
- (1) Vessels arriving empty or in ballast;
- (2) Vessels with a capacity equal to or less than: 4,000 twenty-foot equivalent units, 55,000 deadweight tons, or an individual bulk capacity of 80,000 deadweight tons;
- (3) Vessels engaged in short sea shipping, which is defined as "vessels entering a US port in the continental United States from a voyage of less than 2,000 nautical miles from a foreign port or point."
- This exemption will generally exclude from the Annex II fee most trade with Central America, Canada, and the Caribbean islands.
- Shipping routes crossing the Atlantic and Pacific Oceans, as well as most routes to South America, exceed 2,000 nautical miles.
- Annex II also includes a cap where the fee is only chargeable for a maximum of 5 arrivals per vessel per year.
Annex III
Fee on foreign vehicle carriers.
- A service fee will be assessed on all foreign-built vehicle carriers, regardless of the country of construction or owner/operator.
- The fee is based on the net tonnage of the vessel, at a rate of $14 per net ton.
Fee Breakdown
Annex | Vessel Type | FeeAnnex I | Chinese-owned/operated | $50 per net ton
Annex II | Chinese-built | Higher of $18/NT or $120/container
Annex III | All foreign-built Ro-Ro / Vehicle Carriers | $14 per net ton
Annex II | Chinese-built | Higher of $18/NT or $120/container
Annex III | All foreign-built Ro-Ro / Vehicle Carriers | $14 per net ton
Key Points
- Effective Date: October 14, 2025. Ships arriving before this date are not subject to the new fees.
- Boston CBP has advised “Whether a ship is subject to the fee will be dependent upon the time the vessel comes to rest within the 3 miles; e.g. if your vessel arrives at the dock (or anchorage) on 10/13 and the entrance is done on 10/14 then it still would not be subject to the fees.”
- N.B. this interpretation has not been confirmed by other local CBP offices.
- “Arrival” definition: Triggered by ENOA filing or CBP clearance — not by start of cargo ops.
- Net Tonnage (NT) is documented on the International Tonnage Certificate (ITC) for each vessel.
- Last Port Rule: CBP Houston has advised that it will look at last 5 voyages to prevent vessels/operators from circumventing fees by stopping at a nearby foreign port for convenience/clearance purposes only (this extends to bunkering, crew changes, etc.). In other words, a Chinese-built vessel (greater than 55,000 DWT) that loads in Nigeria and stops in the Bahamas for bunkering ops only on its way to Houston for discharge would still be subject to USTR fees. CBP is aware that owners/operators are looking for workarounds and will try to prevent bad-faith efforts to circumnavigate the regulations.
- First Port Rule:
- the vessel operator will be responsible for paying the fees to US Customs and Border Protection (CBP), "on or before the entry of a [vessel] at the first U.S. port or place from outside the Customs territory." The … fees appear to only be assessed for the first port call per voyage to the United States (rather than compounding for each port call), though some of the language is unclear.
- In other words, fees are assessed per U.S. voyage, not per port call.
Payment:
- Vessel operator is responsible for determining applicability and ensuring timely payment. CBP will not assess or confirm applicability.
- Any party (owner, operator, charterer) will be able to make the payments.
- How to pay: All payments must be made by the owner/operator electronically via Pay.gov
- Payment procedure:
- Submit payment via Pay.gov
- Fill Section 301 Fee Form with vessel details (IMO, voyage #, ETA)
- Select correct Annex category
- Auto-calculated fee amount appears
- Submit payment 3 business days before arrival
- Confirmation is sent to VECS (Vessel Entrance and Clearance System)
- If VECS sync fails, use email confirmation as proof
Estimated Fees
- Annex I Fee = $50 per net ton [Chinese-owned/operated]
- Annex II Fee = $18 per net ton [Chinese built]
- Annex III Fee = $14 per net ton [all foreign‑built vehicle carriers]
Non-Compliance Risks
- No payment = No clearance
- CBP may delay or deny cargo operations or vessel clearance if payment is not confirmed before arrival.
- “Post-audit” enforcement model
- Similar to tax/export controls — operators self-declare, but CBP can audit later. Risk of penalties for non-compliance.
Key Links
Ryan Barrios
Vice President / GM West Coast Operations
Moran Shipping Agencies, Inc.
444 West Ocean Boulevard
Suite 1615
Long Beach, Ca 90802
Office: 310-935-2268 Fax: 925-370-7260 Mbl: 562-212-1546
