Oct 14 Port Fees on China-linked Vessels: What LSPs Must Do Now

What changes on Oct 14

The United States will begin charging new port-entry service fees to certain vessels at their first U.S. port call per foreign rotation, with a cap of five charges per vessel per year. The framework was finalized on Apr 17, 2025 with a 180-day start-at-$0 period that ends on Oct 14, 2025. Fees then phase up annually according to annex-specific schedules.

Annex I applies to vessels with a Chinese operator or owned by an entity of China. Basis is per net ton (NT). Initial rate is $50 per NT from Oct 14, 2025, then $80 per NT on Apr 17, 2026, $110 per NT on Apr 17, 2027, and $140 per NT on Apr 17, 2028.
Annex II applies to Chinese-built vessels operated by non-Chinese operators. Basis is the higher of per-NT or per-container. Initial rates from Oct 14, 2025 are $18 per NT or $120 per container discharged, then $23 NT or $153 box on Apr 17, 2026, $28 NT or $195 box on Apr 17, 2027, and $33 NT or $250 box on Apr 17, 2028.
Annex III applies to foreign-built vehicle carriers. The Apr 17 notice set a $150 per CEU structure beginning Oct 14, 2025. On Jun 12, 2025 USTR published a Request for Comments proposing to modify Annex III to charge $14 per NT. Treat this as proposed until a final notice issues.

Coverage order matters. LNG carriers are addressed in Annex IV and are not subject to the fees. Next in order are vehicle carriers under Annex III, then Annex I, then Annex II if neither I nor III applies.

Who is in scope

Chinese operator or owner includes tests based on headquarters, control, and certain 25 percent ownership thresholds, as well as PRC government ownership or control. These definitions are tied to data on CBP Form 1300 or its electronic equivalent.
Chinese-built follows CBP and USCG rules on place of build and appears on arrival paperwork.
Assessment point is the first U.S. port. For Annex I and Annex II the fee is charged at the first U.S. port on a foreign rotation and is capped at five charges per vessel per year. Annex III does not include a five-charge cap.

Key carve-outs your ops team should check first

Annex II excludes several cases. Do not assume a fee before checking these:

Vessels enrolled in certain U.S. Maritime Administration programs such as MSP and TSP.
Empty or ballast arrivals.
Smaller vessels below stated size or capacity thresholds.
Short-sea voyages, generally under 2,000 nautical miles from specified U.S. ports.
Vessels of certain U.S.-owned companies that meet Annex criteria.
Certain specialized export vessels.

Separate remission provisions allow a temporary suspension if a qualifying U.S.-built vessel is ordered and delivered within specified timelines. A similar remission path exists in Annex III for foreign-built vehicle carriers.

Fee schedules at a glance

Table A. Which fee applies

Vessel attribute	Annex	Basis	Assessed where	Annual cap	Effective
LNG carrier	IV	Requirements, not fee	First U.S. port	n/a	See Annex IV schedule
Vehicle carrier that is foreign-built	III	$150 per CEU from Oct 14, 2025, with proposed change to $14 per NT pending	First U.S. port	No annual cap specified in Annex III	Oct 14, 2025
Chinese operator or owner	I	Per NT	First U.S. port	5 per vessel per year	$50 NT on Oct 14, then 80, 110, 140 NT in 2026, 2027, 2028
Chinese-built, non-Chinese operator	II	Higher of per NT or per container	First U.S. port	5 per vessel per year	$18 NT or $120 box on Oct 14, then 23 or 153, 28 or 195, 33 or 250

Table B. Annex II exemptions to screen before you budget

Category	What to verify
MARAD programs	Enrollment documentation for MSP or TSP as applicable
Empty or ballast	Arrival condition on CBP Form 1300 or EDI equivalent
Small vessel thresholds	Capacity and tonnage against Annex II size criteria
Short-sea	Voyage distance under 2,000 nm from specified U.S. ports
U.S.-owned companies	Ownership and control tests as defined in Annex II
Specialized export vessels	Qualifying vessel type and service description

How costs may appear on customer invoices

Annex I is assessed per NT on China-operator or China-owner vessels. Many operators are expected to convert this into per-box pass-throughs for U.S. inbound strings. Pass-through math is operator policy, not set by USTR.
Annex II already supplies a per-container schedule. You can apply $120 per box from Oct 14 where Annex II is the applicable fee and where the per-container basis is higher than the per-NT amount for that voyage.
Annex III is a per-CEU or potentially per-NT regime depending on the pending modification. Expect finished-vehicle freight to show a new line item once finalized.

Action checklist for LSPs this week

Tag exposure by voyage. For all U.S.-bound arrivals on or after Oct 14, classify the vessel as: Chinese operator or owner, Chinese-built with non-Chinese operator, foreign-built vehicle carrier, or neither. Use CBP Form 1300 fields and carrier advisories.
Budget the line. Where Annex II applies, include $120 per container from Oct 14 and roll forward the annual steps. Where Annex I could apply, request the operator’s pass-through policy in writing before cargo cutoff.
Mind the first-U.S.-port rule. Fees trigger at the first customs-territory touch on a foreign rotation. Confirm port order on strings into LA/LB, SEA/TAC, HOU, NY/NJ, SAV and others.
Screen exemptions. If a Chinese-built vessel is arriving empty or qualifies as short-sea, document the exemption. Do not over-collect.
Prepare customer copy. Add one paragraph in booking confirmations that states: new USTR service fees begin Oct 14 and may appear as operator pass-throughs or per-container lines depending on vessel and operator. Link to your reference page.
Track Annex III developments. Vehicle carrier fees start Oct 14, but the method may change if the $14 per NT proposal is finalized. Watch for the final notice and carrier billing guidance.

Sanity checks and common misunderstandings

Do not assume Annex I is per container. It is per net ton. Any per-box math is an operator conversion.
Do not double-apply fees. A vessel falls under one Annex fee or Annex IV requirements according to the order of precedence.
Do not skip the carve-outs. Annex II has multiple exclusions that turn a yes into a no. Check them first.
Question routing changes. Operators may tweak rotation order to manage exposure. That can change which U.S. port sees the fee and can shift arrival patterns.

Track status, exceptions, and surcharge notes in one place with TRADLINX Container Tracking

Quick glossary

Net ton (NT): a measurement of a vessel’s internal volume used for regulatory fees.
Rotation or string: the sequence of port calls before the vessel returns to a foreign destination.
First U.S. port: the first port or place within the U.S. customs territory touched on that rotation.

References

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