US Issues Rules for China-Linked Vessel Fees

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  • CBP Says Vessel Operators Responsible for Determining Fee Liability.
  • New Charges Up to $50 Per Net Ton for Chinese-Owned or Built Ships.
  • Payments Required via Pay.gov Before Arrival or Vessels Face Loading Ban.

Just under two weeks before new port fees kick in for vessels that are owned, operated, or built in China, the US Customs and Border Patrol (CBP) has shared some important guidance through its Cargo Systems Messaging Service (CSMS). CBP emphasised that “The burden for determining if a vessel owes the fee is on the operator, NOT CBP”, reports Seatrade Maritime.

Fee Structure and Payment Details

Starting from October 14, the new fees will apply to vessels arriving at US ports as follows:

  1. $50 per net ton for vessels owned or operated by a Chinese entity.
  2. For container ships, the fee will be the greater of $18 per net ton or $120 per container for those built in China.
  3. Vehicle carriers or roll-on/roll-off vessels will incur a fee of $14 per net ton.
    Payments need to be made directly to the US Department of the Treasury via the secure pay.gov web portal, not at the port itself.

Payment Deadlines and Operational Restrictions

CBP has strongly advised operators to settle payments at least three days before their vessels arrive. If ships don’t provide proof of payment, they won’t be allowed to load or unload at US ports. Fee calculations will be handled through filings made by operators using the Section 301 Payment Form on pay.gov, with confirmation sent automatically to the Vessel Entrance and Clearance System (VECS) once payment is made.

Uncertainty Over Chinese Ownership Definition

There are concerns among industry players about how Chinese ownership is defined, especially for vessels financed through Chinese leasing arrangements, which have become quite common in ship financing lately.

Projected Financial Impact on Carriers

According to Alphaliner, the top 10 container lines could face USTR 301 Fees amounting to $3.2 billion in 2026 based on current fleet deployments. The companies that will feel the pinch the most are Cosco Shipping Container Lines and its Hong Kong-listed subsidiary, Orient Overseas Container Line (OOCL), which together could face fees of around $1.53 billion.

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Source: Seatrade Maritime