On February 21, local time, the Office of the United States Trade Representative (USTR) issued a notice inviting public comment on measures to be taken following the 301 investigation into China’s dominance of the maritime, logistics and shipbuilding industries.
According to the proposal announced by USTR, the U.S. proposed restrictive measures against China in the maritime, logistics, and shipbuilding sectors include:
Service fees are imposed on Chinese ship operators: Each ship operator in China will impose a maximum port fee of $1 million, or $1,000 per net tonne for each ship entering a U.S. port.
Charges for operators using Chinese-built ships: A service charge of up to $1.5 million is levied on Chinese-built ships entering U.S. ports based on the proportion of Chinese ships in the fleet.
Charge for operators who may order Chinese ships: an additional service charge based on the proportion of ships ordered from Chinese shipyards in the next 24 months, up to a maximum of $1 million.
U.S.-Built Ship Transportation Service Charge Reduction: Operators using U.S.-built ships for transportation are eligible for a refund of service charges on a calendar year basis up to a maximum of $1 million per U.S.-built ship per entry into a U.S. port.
The USTR also proposes transportation restrictions that would require U.S. cargo to be transported by U.S. ships in a phased approach. From the effective date of the program, at least 1 percent of export cargo would have to be transported by U.S.-flag carriers, with a gradual increase in the percentage to follow.
Other measures include reducing reliance on similar platforms such as China’s National Transportation and Logistics Public Information Platform (LOGINK) and recommending that relevant authorities investigate anti-competitive behavior by Chinese shipping companies.