China exempts Chinese-built ships from extra port fees for US interests

China’s Ministry of Transport announced that ships built in China will be exempt from newly imposed special port fees targeting US-linked vessels, addressing fears of increased shipping costs.

Background:

• On Oct. 10, China announced new extra port fees for ships owned, operated, or built by US interests, effective Oct. 14.
• The move was a retaliatory measure against similar US levies on Chinese ships.

Exemptions:

• Chinese-built ships are exempt from the fees.
• Unladen ships entering Chinese shipyards for repairs are also exempt.
• Temporary exemptions may apply for:
  • Shipowners building new ships in China (if meeting domestic classification and equipment standards).
  • Ships under pre-Oct. 14 contracts with fixed fees, eligible for up to 50% reduction during a 30-day transition period.
  • Ships using shore power or meeting carbon intensity standards, eligible for up to 10% reduction.

Coverage & Enforcement:

• The fees apply to ships 25% or more controlled by US entities, including via complex ownership or control agreements.
• A verification mechanism will involve audits and inter-agency data sharing (customs, tax, immigration, etc.).
• The policy is valid for 12 months from Oct. 14, 2025, subject to review and renewal.

Fee Schedule:

• Yuan 400/NT (≈ $56) starting Oct. 14, 2025
• Yuan 640/NT from Apr. 17, 2026
• Yuan 880/NT from Apr. 17, 2027
• Yuan 1,120/NT from Apr. 17, 2028

Comparison:

• The US will impose similar fees of $18–$50 per net ton, also from Oct. 14.
• China’s fee applies only at the first Chinese port of call and to a maximum of five voyages per ship per year.