As explained, BIMCO’s subcommittee began working on the clause at the start of June, prioritising its development as the USTR announced actions to impose fees on ships calling at US ports which are Chinese-built or have Chinese owners or operators.

It has been a priority to engage experts representing different segments of the industry when developing the clause in a short space of time. The USTR actions will present complex challenges, and the subcommittee has carefully discussed how best to arrive at a result that will help the industry minimise disputes

… said Stinne Taiger Ivø, Deputy Secretary General & Director of Contracts at BIMCO.

According to BIMCO, the Notice of Action will significantly raise the cost of seaborne trade to and from the United States and add to regulatory challenges for the shipping industry and will also result in fees imposed on any car carrier built outside of the United States.

Key aspects of the US port fees regulation

The U.S. Trade Representative (USTR) announced on 17 April its plan to impose fees on ships built in China and operated by Chinese companies that dock at U.S. ports. The proposed regulation primarily targets ships based on their country of construction, aiming to reduce US dependence on Chinese shipbuilding and enhance national security.

Following the initial 180-day period, fees will be levied on the basis of net tonnage per U.S. voyage, and will increase incrementally over several years. These fees apply to two distinct categories:

1. Owners and operators of Chinese vessels, based on net tonnage per U.S. voyage;
2. Operators of Chinese-built vessels, calculated either by net tonnage or by the number of containers, depending on the vessel type.

Each vessel is subject to a maximum of five (5) fee assessments per calendar year, regardless of the number of qualifying U.S. entries.

• Once five qualifying entries have occurred, no further fees apply for that vessel until the next calendar year.
• Operators are responsible for tracking entry counts and verifying compliance with this cap.

The implementation timeline for these fees is as follows:

• Effective 17 April 2025 – Fee remains US$0 per net ton (beginning of grace period).
• Effective 14 October 2025 – Fee increases to US$18 per net ton.
• Effective 17 April 2026 – Fee increases to US$23 per net ton.
• Effective 17 April 2027 – Fee increases to US$28 per net ton.
• Effective 17 April 2028 – Fee increases to US$33 per net ton.

Exemptions from Chinese-built vessel fee

In response to industry concerns about disproportionate impacts, the USTR confirmed that certain vessel categories will be exempt from the fee. The following vessel types and operations are explicitly excluded from the Chinese-built vessel fee regime:

• U.S.-flagged or U.S.-owned vessels enrolled in:
  • Maritime Security Program (MSP)
  • Tanker Security Program (TSP)
  • Cable Security Program
  • Voluntary Intermodal Sealift Agreement (VISA)

• Vessels arriving in ballast
• Small vessels, defined as:
  • Containerships ≤ 4,000 TEU
  • General cargo ships ≤ 55,000 DWT
  • Bulk carriers ≤ 80,000 DWT

• Short-sea shipping vessels arriving from a foreign port less than 2,000 nautical miles away
• U.S.-owned vessels, where ≥75% of beneficial ownership and control lies with U.S. persons
• Specialized export vessels: specifically, “special purpose-built vessels for the transport of chemical substances in bulk liquid forms”
• Lakers: vessels identified as “Lakers Vessels” on CBP Form 1300 or its electronic equivalent

Suspension of fees – U.S.-built vessel order mechanism

To incentivise U.S. shipbuilding, the USTR permits a temporary suspension of the fee for a specific Chinese-built vessel, subject to the following conditions:

• The vessel owner must order and take delivery of a U.S.-built vessel of equivalent or greater net tonnage.
• The fee is suspended for up to three (3) years from the date of order.
• If the U.S.-built vessel is not delivered within the three-year window, all deferred fees for the Chinese-built vessel become immediately payable.
• Operators must retain and produce documentary proof of order and delivery status upon request (e.g. construction contracts, builder’s certificates).

Furthermore, on 6 June, the U.S. Trade Representative (USTR) softened fee proposals for non-U.S.-built LNG tankers and car carriers. The revised proposal removes LNG-related penalties for failing to export a percentage of fuel on U.S.-owned ships. It also would reduce fees when foreign-built car carriers visit domestic ports and exempt those vessels when they are serving the U.S. military.

We anticipate that many of the current uncertainties surrounding the enabling provisions to give the USTR Notice its intended effect will be resolved in the months following the implementation of the USTR fees. As more experience is gained, reviewing the clause to ensure it continues to meet our high standards and the industry’s needs will be part of BIMCO’s ongoing contractual work

… commented Nicholas Fell, Chairperson of BIMCO’s Documentary Committee.