USTR Port Fee Implementation: What You Need To Know

Highlights

• New United States Trade Representative (USTR) port fees now apply to certain Chinese-built vessels, vessels with Chinese owners or operators and foreign-built vehicle carriers calling at U.S. ports. The new fees took effect on Oct. 14, 2025.
• This Holland & Knight alert provides an overview of the port fees, as well as key considerations and next steps for impacted parties.

New United States Trade Representative (USTR) port fees on certain Chinese-built vessels, vessels with Chinese owners or operators and foreign-built vehicle carriers calling at U.S. ports have officially gone into effect as of Oct. 14, 2025.

Background and Context

Originally announced on April 17, 2025, the USTR's new port fees are targeting vessels constructed in China and entering U.S. ports, as well as vessels owned or operated by Chinese vessel owners and operators. (See Holland & Knight's previous alert, "USTR Announces Streamlined Notice of Action to Counter Chinese Dominance in the Maritime Sector," April 21, 2025.) This move is part of a broader strategy to address concerns over national security, supply chain resilience and the competitive landscape of global shipping. The regulatory action follows ongoing scrutiny of Chinese-built or owned vessels and their role in U.S. maritime infrastructure. Industry stakeholders are anticipating significant financial and operational impacts.

Details of the USTR Port Fees

The USTR port fees apply to Chinese-built or Chinese-owned vessels calling at designated U.S. ports. Although subject to certain exemptions, the fee structure is designed to impose additional costs on vessels constructed in China, regardless of ownership or flag state. Initially, vessels owned or operated by a Chinese entity will face a flat fee of $50 per net ton per voyage to the U.S., and non-Chinese operators of Chinese-built vessels will be charged the higher amount of either $18 per net ton or $120 per container. Following modifications to the fees on Oct. 10, 2025, a vessel classified as a foreign-built vehicle carrier or roll-on/roll-off vessel will also be subject to a fee in the amount of $46 per net ton. These fees are imposed on a vessel no more than five times a year. Fees may be paid through existing government methods to the extent possible, as determined by U.S. Customs and Border Protection (CBP).

The fee on a particular vessel may be suspended for a period not to exceed three years if the vessel owner orders and takes delivery of a U.S.-built vessel of equivalent or greater net tonnage. Fees will not be charged to Chinese-built vessels or vehicle carriers carrying U.S. government cargo, or to privately owned U.S.-flag vehicle carriers under bareboat charter to the U.S. government. Additionally, there are various other exemptions to the fees for certain Chinese-built vessels, including:

• U.S.-owned or U.S.-flagged vessels enrolled in the Voluntary Intermodal Sealift Agreement, the Maritime Security Program, the Tanker Security Program or the Cable Security Program
• vessels arriving empty or in ballast
• vessels with a capacity of equal to or less than: 4,000 20-foot equivalent units, 55,000 deadweight tons or an individual bulk capacity of 80,000 deadweight tons; this exemption may apply to both liquid bulk and dry bulk vessels
• vessels entering a U.S. port in the continental United States from a voyage of less than 2,000 nautical miles from a foreign port or point, assessed based on the distance actually traveled from farthest foreign port call
• U.S.-owned vessels, where the U.S. entity owning the vessel is controlled by U.S. persons and is at least 75 percent beneficially owned by U.S. persons
• specialized or special purpose-built vessels for the transport of chemical substances in bulk liquid forms
• certain vessels calling at U.S. Great Lakes ports

Industry participants should note that the new fees may influence charter party negotiations, operational planning and risk allocation. (See Holland & Knight's previous alert "BIMCO's New USTR Clause for Time Charter Parties 2025: Key Takeaways for Owners and Charterers," July 30, 2025.) The USTR's action represents a significant shift in U.S. maritime policy, with potential ripple effects across global supply chains and commercial relationships. Stakeholders are advised to monitor for any additional guidance from the USTR and relevant agencies.

Contractual Considerations

The imposition of new port fees may trigger a need to review and potentially renegotiate existing charter party agreements and other commercial contracts. Parties should assess if current contractual terms allocate responsibility for newly imposed governmental charges, such as the USTR port fees, or whether such costs fall outside the scope of existing clauses. The Baltic and International Maritime Council's (BIMCO) recently published USTR clause, for example, was designed to address uncertainties arising from U.S. trade restrictions and to clarify the allocation of risk and responsibility between owners and charterers in the context of these new regulatory measures. The risk of disputes over cost allocation is heightened, especially where contracts are silent or ambiguous regarding regulatory changes of this nature.

Operational and Compliance Impacts

Shipping companies will need to implement robust compliance procedures to ensure accurate documentation of vessel construction origin, as required by the new regulatory framework. Failure to provide adequate documentation may result in delays, penalties or denial of port entry. Although certain vessels identified in the Oct. 10, 2025, modifications may defer payment through Dec. 10, 2025, CBP has stated that the fees otherwise must be paid before entering port and that vessel owners, not the agency, are responsible for establishing if the fees apply.

Recommendations and Next Steps

In light of the implementation of the USTR port fees, it is recommended that clients take the following steps:

• Monitor Regulatory Developments. Stay informed of further guidance from the USTR, CBP and relevant port authorities regarding fee calculation, enforcement and potential exemptions.
• Review and Amend Contracts. Conduct a thorough review of existing charter parties and related agreements to assess exposure to the new fees. Where necessary, negotiate amendments or addenda to clarify cost allocation and compliance obligations.
• Enhance Compliance Procedures. Implement or update internal protocols to ensure accurate documentation of vessel construction origin and timely submission of required information to port authorities.
• Engage with Counterparties. Proactively communicate with charterers, cargo interests and port operators to address operational and financial impacts, as well as to coordinate responses to the new regulatory requirements.
• Scenario Planning. Evaluate the commercial viability of affected trade routes and consider any available steps to mitigate cost increases.
• Provide Comments. Review the current Notice of Modification for proposed modifications that may impact operations and submit written comments on the proposed modifications by Nov. 12, 2025.

Holland & Knight Can Help

We will continue to monitor updates and provide timely guidance as further details emerge. Holland & Knight's USTR Fees Task Force is distinctly positioned to guide shipowners, operators and ship managers through the complex landscape of USTR fees imposed on Chinese-linked vessels. Our team brings together a rare blend of deep maritime industry knowledge and direct experience in U.S. trade enforcement, including former professionals from the USTR office, CBP and U.S. Coast Guard.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.