Comments Requested on USTR Section 301 Investigation of China’s Maritime, Logistics, and Shipbuilding Sectors

Government Relations, Section 232, Trade and Tariffs, Uncategorized

In April 2024, the Office of the U.S. Trade Representative (USTR) initiated a formal investigation of China’s practices in the maritime, logistics, and shipbuilding sectors pursuant to Section 301 of the trade laws.

On January 23, 2025, the USTR determined that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce and, thus, is actionable under Section 301.

On February 27, 2025, the USTR published the following list of proposed actions against China:

  • Charging U.S. port service fees on Chinese maritime transport operators of up to $1 million per entrance or up to $1,000 per ton of the vessel’s capacity.
  • Charging U.S. port services fees on maritime transport operators: (i) with fleets comprised of Chinese-built vessels and/or (ii) with prospective orders for Chinese vessels.  These fees would range from $500,000 to $1.5 million.  It appears from the USTR’s notice that such service fees could be combined and cumulative.
  • Allowing service fee remission for maritime transport via U.S.-built vessels of up to $1 million per entry into a U.S. port of a U.S.-built vessel engaged in international maritime transport services.
  • Restrictions on services to promote the transport of U.S. goods on U.S. vessels. These would include annual increasing requirements that a percentage of exports of U.S. products be on U.S.-flagged vessels by U.S. operators.
  • Potential actions to restrict the use of the Chinese-promoted National Transportation and Logistics Public Information Platform (LOGINK) or other similar platforms.
  • The USTR may also consider “entering into negotiations with allies and partners in order to counteract China’s acts, policies, and practices and to reduce dependencies on China in the maritime, logistics, and shipbuilding sectors.”

The USTR is requesting public comments from interested parties regarding these proposed actions; comments are due by March 24, 2025.

The USTR will also hold a public hearing on March 24, 2025, and requests to appear at the hearing must be submitted by March 10, 2025.