U.S. Warns Ships to Pay USTR Port Fees in Advance to Avoid Delays

What's Happening?

U.S. Customs and Border Protection (CBP) has issued guidance regarding the upcoming USTR Section 301 Vessel Fees, which apply to Chinese-owned, operated, or built ships. The fees, ranging from $50 to $18 per net ton, must be paid at least three days before a ship's arrival at a U.S. port. The CBP emphasizes that the responsibility for fee payment lies with the ship operators, not the agency. Failure to pay could result in denial of lading or unlading operations. The fees are part of a broader U.S. strategy to penalize China for its shipbuilding practices and market dominance. The program, delayed since April 2025, is set to begin on October 14.

Why It's Important?

The implementation of these fees is a significant development in U.S.-China trade relations, particularly affecting the shipping industry. The fees are intended to address perceived unfair business practices by China and to encourage the use of U.S.-built vessels. This move could lead to increased operational costs for shipping companies, particularly those heavily reliant on Chinese-built ships. The fees are expected to generate substantial revenue, with estimates suggesting that the top 10 container carriers could face over $3.2 billion in fees by 2026. This policy could also influence global shipping routes and strategies, as companies may seek to minimize costs by altering their operations.

What's Next?

As the October 14 implementation date approaches, shipping companies are likely to adjust their logistics and financial strategies to comply with the new fee requirements. The U.S. Trade Representative is expected to release further guidance, including a FAQ, to clarify the program's details. The ongoing U.S. federal government shutdown adds uncertainty, as it affects the staffing and operations of relevant agencies. Stakeholders in the shipping industry will be closely monitoring these developments, as they could have significant implications for international trade and shipping practices.