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US Customs to enforce port fees on Chinese ships as Washington gears up for October rollout

  • CBP designated to implement and collect new US port fees targeting Chinese-linked vessels
  • A new Pay.gov payment form is being developed, with non-payment risking operational bans
  • Details clarify enforcement and fee structure as the USTR readies for October implementation

US Customs and Border Protection will enforce and collect the fee, and vessels failing to pay may be barred from cargo operations or departure clearance

US CUSTOMS and Border Protection is being designated as the agent to carry out and collect new port fees, with vessels that fail to pay facing bans on cargo operations or detention, according to shipping sources familiar with the matter.

These are the latest clarifications pertaining to the US Trade Representative’s proposed measures targeting China-built or -owned vessels, set for implementation on October 14, though significant uncertainties remain.

Sources indicate that CBP’s Office of Finance is collaborating with the US Treasury to establish a new standalone payment form on Pay.gov, the US Government’s official payments website.

These fees will be handled separately from standard CBP User Fees and Tonnage Taxes because of the potentially larger amounts that could be owed.

Under the current framework set by the USTR, for vessels owned or operated by Chinese companies, the fee will start at $50 per net tonne per string of US port calls in October, rising to $140 by 2028.

For example, a 10,000 teu containership, which typically has a net tonnage of 70,000, would see fees climb from $3.5m to $9.8m over three years.

To reassure non-Chinese shipowners and operators, charges for vessels merely built in China are substantially lower. Additionally, tankers and dry bulker arriving in the US largely enjoy exemptions.

The new port fee Pay.gov form will facilitate direct Automated Clearing House debit from bank accounts to avoid cash or other physical payments, sources said. It will include data fields for vessel identification, port of arrival, estimated arrival date, as well as payer information and which fee is being remitted.

Notably, vessels required to pay port fees that fail to do so may be prohibited from conducting cargo operations or may have their departure clearance withheld until payment is confirmed.

These disclosed details, while still subject to further changes according to sources, indicate that the Washington is working diligently to advance the implementation of this port tax scheme, despite doubts about whether the measure may be delayed or even shelved as part of a broader Sino-US trade deal that is still being negotiated.

The USTR and CBP have been approached for comment.

Industry observers warn the new fees will not only raise operating costs for Chinese vessels but also increase US logistics expenses, thereby weighing on trade.

The levies also create contractual uncertainty for shipping companies exposed to the US market.

Recently, BIMCO issued a standard clause for time charters, requiring owners to disclose vessel information and assigning financial responsibility for USTR fees by default to the charterer.

 

 

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