Co-authored by Sofia Ntali and Shivana Agarwal.
China’s Ministry of Transport announced today that a “Special Port Service Fee” will be imposed on U.S. linked vessels from Tuesday 14 October 2025.
The new Chinese special port fees are said to be a direct response to the U.S. Trade Representative’s Section 301 Notice of Action announced in April of this year, implementing service fees on Chinese vessel operators and owners, as well as operators of Chinese-built vessels, effective 14 October, and is also set to come into force next week (on the same day, in fact). In their announcement today, the Chinese Ministry of Transport said that the U.S.T.R.’s measures violated “principles of international trade and the Sino-U.S. maritime agreement, causing significant disruption to maritime trade between China and the United States.”
We have outlined below the application of China’s special port service fee, on the basis of the Ministry’s of Transport announcement, but much of the important detail is so far absent and is expected to follow in the “specific implementation measures” mentioned in the announcement so a full analysis of how the PRC regulations will work in practice will have to follow once they are released.
Effective Date
The special port service fee takes effect on Tuesday, 14 October 2025.
U.S.-linked Vessels
The measure applies to:
vessels owned by U.S. enterprises, organizations, or individuals;
vessels owned or operated by enterprises or organizations in which U.S. enterprises, organisations, or individuals directly or indirectly have a 25% or more holding, including voting rights or board seats;
U.S.-flagged vessels; and
vessels built in the United States.
The inclusion of indirect control at or above a 25% threshold, and the explicit reference to voting rights and board representation, signals a functional test of control beyond mere beneficial ownership. This may bring within scope certain special purpose vehicles, joint ventures, and portfolio-controlled entities even where nominal ownership is dispersed or off-shore.
Fees
The fees are levied per net ton on a voyage basis, with staged escalation as follows:
From 14 October 2025: RMB 400 per net ton.
From 17 April 2026: RMB 640 per net ton.
From 17 April 2027: RMB 880 per net ton.
From 17 April 2028: RMB 1,120 per net ton.
The fee is charged only at the first Chinese port of call per voyage and the imposition of the fee is capped at a maximum of five voyages per vessel per calendar year. The single-port and five-voyage caps partially moderate cumulative exposure but still create a significant cost vector for U.S.-linked tonnage trading regularly into China.
Self-Declaration and Collection
The special port service fee is to be collected by the maritime administration at the Chinese port where the vessel first calls. Collection occurs on arrival and, according to current indications, will be accompanied by a self-declaration process through which operators provide details such as operator identity, registration particulars, and relevant platform or service arrangements.
Initial Comments and Considerations
The PRC Ministry of Transport will issue specific implementation measures which are expected to address definitions, documentation, verification procedures, and any administrative remedies. However, given the context, it seems likely that these regulations will closely mirror the U.S. approach.
Today’s announcement of China’s special port service fees has already triggered concern among vessel owners and operators, many of whom are fielding questions from charterers about potential exposure. The key issues are: who will bear initial and ultimate responsibility under charterparty and freight arrangements, and whether finance leasing or similar structures can effectively mitigate risk even though, in practice, the beneficial economic interest may still rest with a U.S. entity. It will also be interesting to see how the market responds to this change and whether a similar clause to the BIMCO USTR Clause will be developed.
China’s latest move signals a potential shift in global maritime dynamics, with Beijing now scrutinizing vessels operated or owned by American entities in much the same way Washington will be doing with Chinese maritime interests.