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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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On June 12, the Office of the U.S. Trade Representative (“USTR”) <a href="https://www.federalregister.gov/documents/2025/06/12/2025-10660/notice-of-proposed-modification-of-action-in-section-301-investigation-of-chinas-targeting-the">proposed two modifications</a> to its April 17 announcement of actions under Section 301, which are scheduled to take effect starting on October 14, 2025. The actions aim to counter China’s dominance in the maritime sector.

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The first proposed modification would revise the method for calculating service fees on Chinese-owned, operated, or built vessels. The second would eliminate the USTR’s authority to suspend export licenses and expand data reporting requirements to include vessel owners and operators.

The USTR is seeking public comment on both proposed modifications.

<a href="https://www.thompsonhine.com/insights/ustr-proposes-actions-against-chinas-unfair-trade-practices-in-maritime-logistics-and-shipbuilding-sectors/">As we previously covered</a>, the USTR proposed Section 301 actions in response to its January 2025 report concluding that China’s acts, policies, and practices in the maritime, logistics, and shipbuilding sectors burden or restrict U.S. commerce. The initial proposals called for significant port service fees on Chinese maritime transport operators and a phased requirement that mandated an increasing percentage of U.S. exports be transported on U.S.-flagged vessels by U.S. entities.

On April 9, 2025, <a href="https://www.thompsonhine.com/insights/white-house-issues-executive-order-on-restoring-americas-maritime-dominance/">President Trump issued Executive Order 14269</a> (“EO”), aimed at revitalizing the U.S. maritime industry and workforce and strengthening national security. Among other provisions, the EO directed the Director of the Office of Management and Budget to work with the Secretary of Transportation to propose a Maritime Security Trust Fund. This fund would provide more reliable, dedicated funding for Maritime Action Plan initiatives through revenue from tariffs, fines, fees, and taxes.

On April 17, 2025, <a href="https://www.thompsonhine.com/insights/ustr-finalizes-fees-on-chinese-built-vessels-and-proposes-new-tariffs-on-chinese-built-maritime-equipment/">the USTR finalized its actions,</a> originally proposed in February 2025, under Section 301 of the Trade Act of 1974, as amended. These actions included:

Service fees on maritime transport services performed by Chinese shipowners and operators

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Fees on operators of foreign vehicle carriers.

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The service fees were set to roll out in two phases: the first starting on October 14, 2025, and the second on April 17, 2028.

The USTR is now proposing two key modifications to its final actions issued on April 17, 2025.

The first proposed modification would alter how service fees are calculated for vessels entering U.S. ports. Previously, the fees were to be assessed based on the Car Equivalent Unit (CEU) capacity of vessels entering U.S. ports. The USTR now proposes shifting to a “net tons” basis and limiting the service fees to non-U.S.-built vehicle carriers. According to the USTR, this modification is “appropriate to address administrability and in light of the potential for fee evasion.”

The USTR also clarified that the service fees will not apply to U.S.-owned or U.S.-flagged vessels enrolled in the Maritime Security Program, nor to U.S. government vessels or cargo.

Changes to Export License Authority and Data Collection

The second modification would (1) eliminate the USTR’s authorization to suspend LNG export licenses, and (2) expand LNG-related data collection requirements.

Under the original proposal, the USTR could suspend LNG export licenses if exporters failed to comply with new shipping requirements involving U.S.-flagged vessels. LNG terminals were also required to report the volume of LNG shipped and the percentage shipped on U.S.-built and U.S.-operated vessels. The modification proposes extending these reporting requirements to vessel operators as well.

The USTR seeks public comment on both proposed modifications. Comments are due by July 7, 2025, and may be submitted at <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a> under Docket No. USTR-2025-0013.

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

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USTR Proposes Modifications to Section 301 Actions on Chinese Vessels and Maritime Transport Operators

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