USTR Invites Industry Feedback on Proposed Revisions to Section 301 Maritime Trade Policies
According to a recent proclamation from the Office of the United States Trade Representative (USTR), there’s an open window for public feedback on proposed changes to its Section 301 trade measures aimed at curbing China’s influence in the maritime industry.These updates, revealed on June 6, 2025, primarily address adjustments in vessel fee structures and licensing requirements for LNG exports.
This initiative stems from an inquiry that kicked off in April 2024, which found that China’s operations within maritime logistics and shipbuilding unfairly impact U.S.businesses. Consequently, significant trade actions were introduced last April, including hefty tariffs of 25% on goods associated with these sectors and new port fees for vessels built in China. Additionally, export licenses could face restrictions if any retaliatory actions or non-compliance from China are observed.
Among the key changes being considered is a specific coverage provision for vessels participating in the Maritime Security Program and a transition to net tonnage-based fees as outlined under Annex III. The USTR also plans to remove previous provisions that allowed LNG export licenses to be suspended retroactively from April 17, 2025—this aims to clear up regulatory confusion surrounding energy exports.“The goal of these initiatives is to level the playing field for American companies and workers affected by Chinese policies,” states the USTR notice.
The proposals also contemplate potential exemptions or adjusted fee structures specifically for U.S.-flagged vessels involved in national defense efforts through the Maritime security Program—ensuring that defense-related ships aren’t unduly penalized. By shifting from deadweight tonnage calculations to net tonnage metrics for fees, it’s anticipated this will better reflect commercial practices and possibly lower costs for larger vessels with less cargo capacity.
Moreover, input is being sought regarding expanding Annex IV restrictions so they encompass not just charterers but also vessel owners and operators—this could significantly widen enforcement reach against both domestic players and foreign entities linked with Chinese interests.
Interested parties have until July 7, 2025, to share their thoughts on these proposed modifications; details can be found in the Federal Register notice available online.
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