As a follow up to our initial post after the initial announcement on Friday 10 October 2025, we have further considered the new Implementation Measures (defined below) introduced by the Chinese government.
On 10 October 2025, China’s Ministry of Transport (“Ministry of Transport”) announced that special port charges (“Special Port Fees”) will apply to United States vessels at Chinese ports starting from 14 October 2025. This measure responds to the US port service fees announced on 17 April 2025, targeting Chinese-owned, operated, flagged, or built ships following a Section 301 investigation by the USTR into China’s maritime, logistics, and shipbuilding sectors.
On 14 October 2025, the Ministry of Transport further released the official “Implementation Measures for Collecting Special Port Fees from U.S.-Related Vessels” (“Implementation Measures”) that provide further details on to whom and how the Special Port Fees will apply. The bilingual text of the Implementation Measures can be viewed here as Attachment 1. On the same day, China’s Maritime Safety Administration (“MSA”) published the Guide for Submitting the “Reporting Form on US-Linked Vessel Information” (“Guide on Reporting Form”). The bilingual version of the Guide on Reporting Form can be viewed as Attachment 2 for reference.
Separately, the Ministry of Transport further released an announcement at noon on 14 October 2025, stating that the Ministry of Transport would initiate an investigation into the developmental interests of the shipping industry (the “Announcement”). Pursuant to the Announcement, the Ministry of Transport will investigate whether any organization, enterprise or individuals have implemented, assisted or supported discriminatory and restrictive measures imposed by the US on China’s shipping-related industries and subsequent measures will be introduced based on the findings of this investigation. The bilingual version of the Announcement can be viewed as Attachment 3 for reference. Shortly after the Announcement, China announced that it has sanctioned five U.S. subsidiaries of South Korean shipbuilder Hanwha Ocean for having assisted and supported the U.S. government’s probes and measures against Chinese maritime, logistics and shipbuilding sectors.
Summary of the Implementation Measures
The Implementation Measures provides that vessels calling at Chinese ports will be subject to aSpecial Port Fee if they meet any of the following criteria:
Owned by U.S. enterprises, organizations, or individuals.
Operated by U.S. enterprises, organizations, or individuals.
Owned or operated by entities in which U.S. enterprises, organizations, or individuals directly or indirectly hold 25% or more of the equity, voting rights, or board seats.
Flying the U.S. flag; or
Built in the U.S.
For the aforementioned vessels, Special Port Fees will be collected on a per-voyage basis and implemented in stages. The detailed rates of the Special Port Fees are as follows (with amounts less than 1 net ton rounded up to 1 net ton):
For vessels calling at Chinese ports from October 14, 2025, RMB 400 per net ton.
For vessels calling at Chinese ports from April 17, 2026, RMB 640 per net ton.
For vessels calling at Chinese ports from April 17, 2027, RMB 880 per net ton.
For vessels calling at Chinese ports from April 17, 2028, RMB 1,120 per net ton.
However, the Implementation Measures also establish several exemptions and limitations, which are set out as follows:
Vessels built in China, even if otherwise meeting the above criteria, are exempt.
Ballast vessels entering Chinese shipyards solely for repairs are exempt.
Other vessels may be exempted as determined by maritime authorities.
The fee applies only at the first Chinese port of call during a voyage.
Each vessel will be charged for no more than five voyages per year (the annual cycle begins on 17 April).
Our observations
While the Implementation Measures set out the outline for how China intends to implement the Special Port Fees, questions remain and the industry requires further clarification from governmental bodies. We set out our observations on the issues that require further clarification.
Definition of “Operator”
Neither the Implementation Measures nor the Guide on the Reporting Form provides a definition of “operator”. While it is relatively clear that a bareboat charterer would fall into the definition of an “operator”, there remains significant uncertainty regarding whether other commercial operators, such as time charterers or voyage charterers, would also fall within this definition. Some argue that a time charterer—particularly one operating under a long-term time charterparty—responsible for paying port charges could potentially be construed as the vessel’s “operator.”
We understand that the relevant authorities have noted these concerns and are aiming to publish detailed interpretations on this issue in due course.
We are assisting clients to complete the Reporting Form. The Reporting Form must be submitted to the local port authority within 7 days before arrival and the owners/the ship agents may always make an enquiry with the local port authority.
Owned or operated by entities or individuals with a US-nexus (25% or more of the equity interest, voting right or board control)
The assessment of whether a vessel is subject to the Special Port Fees hinges on whether it is owned or operated by entities in which U.S. individuals, organizations, or entities directly or indirectly hold 25% or more of the equity interest, voting rights, or board representation (“US-Nexus Criteria“). We are working with clients to evaluate whether the US-Nexus Criteria applies. This can be complex given the nature of some of the shipping structures and the reference to “directly or indirectly” in the assessment required.
Implementation of the Special Port Fees and Payment of the Special Port Fees
Based on article 4 of the Implementation Measures, it is stated that the Special Port Fees will be “collected by the maritime administration authority at the port where the vessel calls”. We understand this to mean that the local port authority will be responsible for collecting Special Port Fees for vessels that call at their port.
In respect of reporting obligations, the vessel owner or its agent (e.g. the master or captain of the vessel) is under an obligation to provide the relevant information stipulated in the Report Form to the relevant maritime authorities at least 7 days prior to the vessel’s expected arrival at a Chinese port.
We are advising clients under their existing contractual arrangements, including contracts of affreightments and charterparties as to where liability may ultimately lie for such Special Port Fees.
Consequences for failure to comply with the Implementation Measures
Pursuant to Article 7 of the Implementation Measures, if any information listed on the Reporting Form is found to be concealed or incomplete, the maritime administration shall require the vessel owner or its agent to submit the missing information.
Article 8 of the Implementation Measures provides that for vessels that fail to pay Special Port Fees, the relevant maritime administration shall not process their entry or exit clearance procedures.
In the scenario where the owner of the vessel or its agents evades payments of the Special Port Fees, the vessels shall settle the outstanding fees before their next call at a Chinese port if they have already departed from a Chinese port.
China’s Investigation into companies that have supported US discriminatory measures against China’s shipping-related sector
As mentioned in the above, China has commenced its investigation into companies that have supported US discriminatory measures against China’s shipping-related sector. Pursuant to the Announcement, China has just added five US subsidiaries of South Korean shipbuilder Hanwha Ocean to its sanction list over their alleged involvement in Washington’s probe into the Chinese shipping industry on 14 October 2025. The sanctioned subsidiaries include Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp. Chinese organizations and individuals are prevented from doing business with the sanctioned entities with immediate effect. This is a response to the US’ imposing steep port service fees on Chinese vessels and is a further demonstration of China’s strong opposition against the USTR 301 measures.
Conclusion
While there are still certain ambiguities to the Implementation Measures and their application, the Ministry of Transport has the authority to interpret, adjust or amend the Implementation Measures as they see fit. It remains to be seen how the Implementation Measures are to be rolled out, but we will continue to monitor official updates from the Chinese government and will provide updates to our advice immediately should there be any clarifications or interpretive guidance that modify the applicability or scope of the Implementation Measures.