PROPOSED MODIFICATIONS TO SECTION 301 ACTION TARGETING CHINA’S MARITIME AND LOGISTICS POLICIES MAY ALTER IMPLEMENTATION PATH FOR U.S. IMPORTERS

USTR ANNOUNCES PROPOSED MODIFICATIONS TO SECTION 301 MARITIME, LOGISTICS, AND SHIPBUILDING ENFORCEMENT

The Office of the United States Trade Representative (USTR) recently published proposed modifications to the April 17, 2025 enforcement determination issued under the Section 301 investigation of China’s targeting of the maritime, logistics, and shipbuilding sectors.

These modifications are part of USTR’s broader implementation of Executive Order 14269, which outlines a national strategy to rebuild domestic maritime capacity and reduce dependencies in critical sectors. The proposed changes apply specifically to Annex III and Annex IV of the original determination. No revisions have been introduced to the chapeau or to Annexes I and II. The overall direction and scope of the enforcement action remain unchanged.

PROPOSED CHANGES TO THE SECTION 301 IMPLEMENTATION FRAMEWORK

USTR proposes revisions to the structure and application of service fees assessed on operators of non-U.S. built vehicle carriers.

The proposed changes include:

• Shifting the fee calculation method from Car Equivalent Units (CEUs) to net tonnage

• Maintaining the scheduled implementation date of October 14, 2025

• Preserving the initial 180-day period during which no fees are assessed

The announcement also formalizes exemptions for the following:

• Vessels enrolled in the Maritime Security Program

• U.S. government vessels, including those under bareboat charter

• U.S. government cargo transported aboard eligible vessels

In addition, USTR seeks to remove a trade restriction that would have authorized suspension of LNG export licenses under specified conditions. The proposed removal is intended to address concerns regarding the impact on the U.S. LNG sector while preserving reporting requirements that track the use of U.S.-built and U.S.-operated vessels in LNG transport.

SECTION 301 COMMENT SUBMISSION PROCESS AND DEADLINE

USTR is requesting public comment on the proposed modifications and input regarding the application of LNG data reporting requirements, including whether responsibility should rest with vessel operators, vessel owners, or another designated party. Comments must be submitted electronically via the USTR portal at https://comments.ustr.gov/s/ using docket number USTR-2025-0013.