Implementation of Phase One of the Section 301 remedies under the U.S. Trade Representative’s investigation into Chinese shipbuilding began this week. This investigation was launched in 2024 at the behest of five labor unions and focused on China’s growing foothold on the international merchant marine fleet.
Last week, USTR issued a notice containing some modifications to the Section 301 vessel fees. Most notably for ASA, USTR issued a determination in its investigation into ship-to-shore cranes and cargo handling equipment (containers, chassis, and chassis parts).
As part of the announcement, USTR determined that after deliberation, the proposed Section 301 tariff on intermodal shipping containers would not be implemented. This comes after ASA submitted joint comments with the U.S. Soybean Export Council, Soy Transportation Coalition, and the Specialty Soya & Grains Alliance arguing against the imposition of duties on containers given the negative impacts on U.S. specialty soy exports.
The first tranche of remedies proposed by USTR in April are now in effect, including:
USTR will assess fees of $50 per net ton on vessels that are Chinese owned and operated based on net tonnage per U.S. voyage. The fees will increase by $30 per net ton each year over a three-year period.
USTR will assess fees of $18 per net ton on Chinese-built ships that are operated by companies outside of China based on net tonnage. The fees will increase by $5 per net ton each year over a three-year period.
To incentivize U.S. built car carrier vessels, fees will be imposed on all foreign-built roll-on/roll-off (vehicle carrier) vessels based on capacity.
Note: Fees only generally apply to Chinese vessel operators and Chinese-built ships, but there are exemptions.
Sec. 301 implementation is ongoing, and ASA continues to work with its partners at USSEC and in the grain trade to monitor any downstream impacts on U.S. soybean farmers.
