China levies special port fees on US-Linked vessels

The Ministry's announcement was followed by a set of implementation measures issued on 14 October 2025 which clarify how the Special Port Fees regime will operate (Implementation Measures).

The Special Port Fees became effective on 14 October 2025 – the same date as the USTR Fees – and the adopted rates and scope of application closely match those imposed by the USTR.

Scope of application

The Special Port Fees are levied on five categories of vessels:

1. Vessels owned by US enterprises, organisations and individuals;
2. Vessels operated by US enterprises, organisations and individuals;
3. Vessels owned or operated by enterprises or organisations in which US enterprises, organisations and individuals hold directly or indirectly at least 25% of the equity interest, voting rights or board seats;
4. US-flagged vessels; and
5. US-built vessels.

Article 2 of the Implementation Measures also provides that the following vessels will be exempted from payment:

• vessels built in China;
• vessels in ballast condition entering Chinese shipyards for repair works; and
• any other vessels that are otherwise "approved for exemption". 

There are a number of issues which remain unclear and are not addressed by the Implementation Measures, such as:

• the test that the Chinese authorities will apply to determine whether an entity is a US enterprise or organisation under categories (a)-(c) above (place of incorporation v  primary place of business);
• the procedure owners/operators or their agents will be required to follow in order to request an exemption from the Ministry;
• any criteria the Ministry will consider when making a decision on whether or not to grant the exemption sought.

Note that the Implementation Measures refers to “25% equity (股权)” – meaning voting rights and board representation, not simply shareholding (股份). This indicates the focus is on substantive control, not plain investment. Therefore, companies merely listed in the U.S., where shares are held by dispersed or non-controlling investors, are likely not to fall within the scope of the current measure. That said, the rules leave room for future expansion, so ongoing monitoring of the Ministry's Implementation Measures and their application is advised.

Applicable Rates and Payment

Article 3 sets the fee at a progressive rate starting at RMB 400 / net ton and increasing per annum by 2028: 

The Implementation Measures also specify that the Special Port Fees will be collected by the maritime administrative authority of the port of call. In the event that a vessel calls at multiple Chinese ports during the course of the same voyage, the port fees will be paid to the authorities of the first port of call. Finally, any vessels that undertake over five voyages within the same annual billing cycle (which begins on 17 April) will be required to pay fees only for the first five voyages.

Reporting requirements

According to Article 6 of the Implementation Measures, the owner/operator or their agent are required to supply certain information to the local administrative authority at least 7 days prior to the vessel's arrival at a Chinese port. This includes inter alia:

• the vessel's country of construction;
• the vessel's flag;
• details of the ship's owner / operator;
• any leasing arrangements in place;
• details of the intended port(s) of call for the voyage.

In the event that the voyage duration from the previous port of call is less than seven days, the owner/operator or their agent are required to provide the relevant information upon the vessel's departure from the previous port.

Consequences for inaccurate reporting / non-payment of port fees

The local maritime administrative authority will verify the information provided by the relevant party. Article 7 of the Implementation Measures suggests that if the required information is not provided or is incorrect, the authority will request the owner/operator or their agent to supplement or correct their reporting as needed. 

The penalty for any vessel found to be in violation of these measures will be the refusal to be granted port entry or departure clearance. If a vessel has already departed from a Chinese port without paying the fees due, any outstanding amount must be settled before her next call at any Chinese port.

Notably, the introduction of the Special Port Fees has already prompted strategic governance adjustments among affected companies. For example, by asking U.S. directors to step down to ensure that U.S.-controlled board votes remained below the 25 percent threshold, illustrating the immediate practical impact of these measures.

The Special Port Fees are bound to have wide-ranging ramifications for the shipping industry and international trade in general. It remains to be seen how the US will react to the imposition of these fees and whether additional measures will be contemplated. The Ministry has already made clear that it will keep the matter under review and will not hesitate to adjust the scope, rates and duration of the Special Port Fees. We anticipate that additional measures may be adopted in the future if the USTR decides to take further action on the back of the implementation of the Special Port Fees regime.

See our briefing on the USTR Fees here.

Our legal team is closely monitoring this developing situation and is well-positioned to assist industry players in navigating the ongoing trade tensions between the US and China.