- The USTR’s latest clarification has created uncertainty over whether the 55,000 or 80,000 DWT limit applies to Chinese-built tankers.
- CBP documentation distinguishes between bulk and other vessels, but practical filings treat tankers as bulk carriers.
- The ambiguity arises from unclear definitions of “liquid bulk vessels” in the revised Section 301 text.
- Chinese-built tankers not owned or operated by Chinese entities likely remain exempt from US port fees despite the confusion.
Uncertainty remains over the exact size limit for Chinese-built tankers to qualify for port fee exemptions when discharging in US ports. While vessels under 55,000 DWT are clearly exempt under current guidance, the status of those between 55,000 and 80,000 DWT is less clear. The issue stems from recent updates to Section 301 by the US Trade Representative (USTR), which appear to blur the distinction between bulk and liquid bulk vessels, as outlined by Breakwave Advisors LLC.
Ambiguity in USTR Definitions Creates Confusion for Tanker Operators
Despite efforts by the USTR to provide clarity, confusion persists among tanker operators and owners. The updated Section 301 document specifies that “bulk vessels” include “liquid bulk vessels,” yet omits crude and product tankers from its examples—creating uncertainty about their classification. Internal US Customs and Border Protection (CBP) guidance from October 1 suggests that 80,000 DWT applies to bulk carriers, while 55,000 DWT applies to all other vessels. However, practical experience at US ports indicates that tankers continue to be declared as bulk vessels, implying that the 80,000 DWT limit may apply in practice. As a result, Chinese-built tankers, provided they are not Chinese-owned or operated, are likely exempt from port fees when calling at US ports—though the lack of precise regulatory wording leaves room for interpretation.
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Source: Breakwave Advisors LLC
