[Federal Register Volume 90, Number 198 (Thursday, October 16, 2025)]
[Notices]
[Pages 48320-48328]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-19568]
[[Page 48320]]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Notice of Modification and Proposed Modification of Section 301
Action: China's Targeting of the Maritime, Logistics, and Shipbuilding
Sectors for Dominance
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Notice of modification, proposed modification of action, and
request for comments.
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SUMMARY: In notices published on April 23, 2025, and June 12, 2025, the
U.S. Trade Representative proposed certain modifications to the actions
being taken in this investigation. This notice announces a
determination by the U.S. Trade Representative to modify the action by:
altering the fee basis and rate for vehicle carrier vessels as provided
in Annex III of the April 23 notice, and by exempting operators of
vessels in the Maritime Security Program; eliminating paragraph (j) of
Annex IV of the April 23 notice, which provided that USTR could direct
the suspension of licensing for liquefied natural gas (LNG) shipments
if the schedule of restrictions set forth in Annex IV was not met; and
imposing additional duties of 100 percent on ship-to-shore (STS) cranes
and duties of 100 percent on certain cargo handling equipment of China
as described in Annex V.A of this notice. In addition, the U.S. Trade
Representative is proposing further modifications to certain aspects of
the responsive action. This notice announces the opening of a public
comment docket for interested parties to comment on the proposed
further modifications. This notice also sets forth ministerial
clarifications to provide greater certainty on the operation of the
action being taken in this investigation.
DATES:
April 17, 2025: The removal of Annex IV, paragraph (j), is
effective as of this date.
October 10, 2025: Comment period opens regarding the proposed
further modifications to the action, as provided in this notice. The
service fee schedule modifications to Annex III of the April 23 notice,
as provided in this Notice, are effective as of this date.
November 9, 2025: Additional duties on STS cranes and intermodal
chassis and parts, as provided for in Annex V.A of this Notice, are
effective as of this date.
November 10, 2025: To be assured of consideration, submit written
comments regarding the proposed modifications to the action being taken
in this investigation.
ADDRESSES: Submit documents in response to this notice, through USTR's
electronic portal: https://comments.ustr.gov/s/. The docket number for
written comments an is USTR-2025-0017.
FOR FURTHER INFORMATION CONTACT: Philip Butler, Chair of the Section
301 Committee; Thomas Au, Associate General Counsel; or David Salkeld,
Assistant General Counsel at (202) 395-5725.
SUPPLEMENTARY INFORMATION:
A. Background
For background on the proceedings in this investigation, please see
the prior notices issued in this investigation, including 89 FR 29424
(April 22, 2024), 90 FR 8089 (January 23, 2025), and 90 FR 10843
(February 27, 2025).
On April 17, 2025, pursuant to sections 301(b), 301(c), and 304(a)
of the Trade Act of 1974, as amended (19 U.S.C. 2411(b), 2411(c), and
2414(a)), and following consideration of public comments, as well as
consultations with advisory committees and the Section 301 Committee,
the U.S. Trade Representative determined to take action in this
investigation. See 90 FR 17114 (April 23, 2025) (April 23 notice).
Through Executive Order 14269, Restoring America's Maritime
Dominance, the President directed the U.S. Trade Representative to
consider proposing the following actions in this investigation: ``(i)
tariffs on ship-to-shore cranes manufactured, assembled, or made using
components of PRC origin, or manufactured anywhere in the world by a
company owned, controlled, or substantially influenced by a PRC
national; and (ii) tariffs on other cargo handling equipment.''
Consistent with the President's direction in Executive Order 14269,
the U.S. Trade Representative proposed additional duties on STS cranes
and on an initial list of other cargo handling equipment. See 90 FR
17114, 17124-5. On May 19, 2025, USTR held a public hearing regarding
the proposed additional duties and received testimony from seven
witnesses.
On June 6, 2025, the U.S. Trade Representative proposed to modify
the action in this investigation in several respects, including by
eliminating paragraph (j) of Annex IV of the April 23 notice,
retroactive to April 17, 2025. See 90 FR 24856-60 (June 12, 2025) (June
12 notice). Under that provision, USTR could direct the suspension of
LNG export licenses until the terms of paragraph (f) of Annex IV were
met. The June 12 notice also included a proposal to modify Annex III of
the April 23 notice, by altering the basis of the fee in the annex to
net tons and by providing for a targeted coverage provision to exempt
operators of vessels in the Maritime Security Program.
B. Modification of Action
Section 307(a)(1) of the Trade Act authorizes the Trade
Representative to modify any action being taken under Section 301,
subject to the specific direction of the President, including if such
action being taken under Section 301(b) is no longer appropriate. The
term ``appropriate'' refers to Section 301(b), which requires the U.S.
Trade Representative to ``take all appropriate and feasible action
authorized under [section 301(c)] to obtain the elimination of [the]
act, policy, or practice.'' The specific action that will obtain the
elimination of an act, policy, or practice is a matter of predictive
judgment, to be exercised by the U.S. Trade Representative, and subject
to any specific direction of the President. Such appropriate action
includes action to obtain a reversal of the investigated acts,
policies, or practices.
In consideration of the public comments received in response to the
April 23 notice and June 12 notice, advice from the Section 301
Committee, and consultations with petitioners and advisory committees,
the U.S. Trade Representative has determined that certain aspects of
the action are no longer appropriate, and that changes to the action
are warranted to obtain a reversal of the investigated acts, policies,
or practices, considering the potential to reduce dependence on China,
and the specific direction of the President to consider imposing
tariffs on other cargo handling equipment of China, which may
significantly increase leverage on China to eliminate the investigated
acts, policies, and practices.
The U.S. Trade Representative has determined that it is appropriate
to modify the action by:
altering the fee basis and service fee rate, and providing
certain targeted coverage, for Annex III of the April 23 notice;
eliminating paragraph (j) of Annex IV of the April 23
notice, retroactive to April 17, 2025; and
imposing duties on STS cranes, intermodal chassis, and
chassis parts of China, as described in Annex V.A of this Notice.
[[Page 48321]]
B. Responses to Significant Comments
Below, USTR responds to comments on the proposed modifications that
raise significant issues.
Proposed Modifications to Annex III of the April 23 Notice
Fee Basis and Rate
USTR requested comments on the potential impact of a fee on vessel
operators of foreign-built vehicle carriers based on net tons, as well
as the suggested amount of the fee, and the implications of a targeted
coverage provision for the Maritime Security Program and suggested
duration for such targeted coverage.
Several responsive comments supported modifying the basis for the
service fee from Car Equivalent Units (CEU) to net tons, as a CEU basis
could be manipulated and is assessed based on outdated vehicle
measurements, whereas net tons are a measurement used by the United
States Government. Some comments cautioned that a net-tons-based
service fee could result in disproportionately higher fees on roll-on/
roll-off vessels, as net tonnage is a measurement of interior volume,
and roll-on/roll-off vessels have larger enclosed interiors
proportionate to their overall size compared with other classes of
vessels. Some comments suggested applying the fee on a ``Car Unit''
discharged basis. Some comments raised concerns of potential increased
costs and possible impact on exports arising from the service fee. A
number of comments raised concerns that the proposed service fee rate
of $14 per net ton is too low, and calculated that the proposed rate of
$14 per net ton is less than the projected the Car Equivalent Unit
basis fee imposed in Annex III of the April 23 notice. Two comments
affirmatively supported the $14 per net ton fee level.
In response to comments that argued that the service fee on vessel
operators of foreign-built vehicle carriers was not subject to full
public consultation, USTR disagrees. Regarding comments that argued
that the Trade Representative's determination to apply a service fee on
vessel operators of foreign-built vehicle carriers was not subject to
full public consultation, these comments are outside the scope of
proposed modifications on which USTR requested comments. However, the
service fee on vessel operators of foreign-built vehicle carriers was a
logical outgrowth of USTR's proposed service fee on maritime transport
operators. See 90 FR 10843, 10844-5 (Feb. 27, 2025). Initially, USTR
proposed a service fee on maritime transport operators, including
potential fees on a nondiscriminatory basis, and provided a number of
alternatives. USTR requested comments on the alternatives and
specifically whether the proposed fees were appropriate and would be
practicable or effective to obtain the elimination of China's acts,
policies, and practices. Id. at 10845. Based on the comments received,
the Trade Representative determined that a service fee on vessel
operators of foreign-built vehicle carriers would be effective in
obtaining the elimination of China's acts, policies, and practices.
Considering the public comments and the advice of the Section 301
Committee, the U.S. Trade Representative has determined to change the
basis and rate of the service fee on vessel operators of foreign-built
vehicle carriers. The U.S. Trade Representative has determined to
change the basis of the service fee from a Car Equivalent Unit standard
to net tons. Regarding the fee rate, the Trade Representative has
determined to set the service fee rate to $46 per net ton as of October
14, 2025, and limiting the total collection of this service fee to five
times per calendar year, per vessel. These modifications will address
concerns regarding unfair manipulation of a Car Equivalent Unit and the
establishment of a net ton rate that is too low, which would limit the
effectiveness of the action, and will provide additional leverage to
encourage China to eliminate the investigated acts, policies, and
practices.
Targeted Coverage for Operators of Maritime Security Program Vessels
and Operators of U.S. Government Vessels
USTR received comments both in support of and opposing providing
targeted coverage exempting operators of Maritime Security Program
vessels from the Annex III fee. Comments did not oppose targeted
coverage as applied to operators of U.S. Government vessels. Some
comments indicated that providing targeted coverage would reduce the
effectiveness of the responsive action, provide a benefit to operators
who have acquired Chinese-built vessels, and negatively impact the U.S.
shipbuilding industrial base. One comment suggested that USTR should
adopt an outright prohibition on the utilization of Chinese-built
vessels by Maritime Security Program operators in order to qualify for
targeted coverage under this annex. Other comments indicated that a
lack of targeted coverage for operators of Maritime Security Program
vessels would result in operational changes that would reduce the
overall size of the U.S.-flag commercial fleet and reduce the
availability of such vessels to respond to national security needs.
Considering the public comments and the advice of the Section 301
Committee, the U.S. Trade Representative has determined that it is
appropriate to provide targeted coverage to operators of Maritime
Security Program vessels to maintain incentives for maximal use of the
U.S. flag and to ensure availability of such vessels for national
security purposes, as well as to operators of U.S. Government vessels.
In consideration of the comments that the targeted coverage provision
should not incentivize future use of Chinese and other non-U.S.-built
vessels, this targeted coverage provision will expire, unless renewed,
on April 18, 2029.
Proposed Modifications to Annex IV of the April 23 Notice
In the June 12 notice, the U.S. Trade Representative proposed to
modify the action by eliminating paragraph (j) of Annex IV of the April
23 notice, which provided that USTR could direct the suspension of
licensing for LNG shipments if the schedule of restrictions set forth
in Annex IV was not met. USTR requested comments on the potential
impact of this proposed modification.
Some comments supported the removal of paragraph (j) of Annex IV.
Other comments argued for retaining this enforcement provision. Some
comments suggested instead applying a service fee if the LNG maritime
transport requirements are not met. One comment suggested a 60-day
market testing period for the potential restrictions under paragraph
(j).
Considering the public comments and the advice of the Section 301
Committee, the U.S. Trade Representative has determined to eliminate
paragraph (j) of Annex IV, retroactive to April 17, 2025. This
modification will avoid potential short-term disruptions to the LNG
sector while promoting investments in U.S. shipbuilding capacity and
production of LNG vessels. USTR views LNG exports as an important
contribution to the U.S. economy and U.S. economic security. USTR
observes that significant domestic demand for new LNG vessels coupled
with increased investment in U.S. shipbuilding capacity will result in
the successful construction of LNG vessels in the United States in the
coming years, ensuring that U.S. energy exports can be transported on
U.S.-built vessels. Some industry assessments estimate that more than
240 LNG carriers are needed to carry U.S. LNG exports beyond those
[[Page 48322]]
already on order, providing new opportunities to enhance American
energy security.\1\ USTR is closely monitoring the production and
availability of U.S.-flagged, -operated, or -built vessels, and USTR
will also continue to promote the competitiveness and resiliency of the
U.S. LNG industry in a manner consistent with U.S. policy goals,
including through additional measures designed to support the expansion
of the U.S. shipbuilding sector.
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\1\ See, e.g., BRS Group Annual Review 2025, available at
https://brsshipbrokers.com/publications.
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Proposed Duties on STS Cranes and Other Cargo Handling Equipment in the
April 23 Notice
Consistent with the President's direction in Executive Order 14269,
USTR requested comments on ``[a]dditional duties of up to 100 percent
on STS cranes manufactured, assembled, or made using components of
Chinese origin, or manufactured anywhere in the world by a company
owned, controlled, or substantially influenced by a Chinese national,
as described in Annex V [of the April 23 notice],'' and [a]dditional
duties of up to 100 percent on certain cargo handling equipment of
China, as specified in Annex V [of the April 23 notice].'' The action
with respect to STS cranes was proposed to be imposed on a
nondiscriminatory basis. See 90 FR 17114, 17121; 19 U.S.C.
2411(c)(3)(A).
STS Cranes
Several comments were generally supportive of additional tariffs on
STS cranes. Some comments suggested adjustments, such as a 3-year delay
in tariffs, allowing a modified duty drawback provision, or adding a
``grandfather'' provision for STS cranes that have already been
contracted. Some comments recommended against imposing tariffs on STS
cranes. Other comments suggested a number of adjustments to the
proposed tariff on STS cranes, such as delaying implementation,
differentiating the tariff between STS cranes with or without Chinese
information technology equipment, or excluding the value of U.S.-origin
content. One comment suggested expanding the scope of the proposed
tariff to cover embedded sensors and software. Some comments raised
concerns about the potential harm to the U.S. economy and global supply
chains should STS cranes be subject to additional tariffs.
Considering the specific direction of President, the public
comments, and the advice of the Section 301 Committee, the U.S. Trade
Representative has determined to impose additional duties of 100
percent on STS cranes as described in Annex V.A to this notice.
Increasing Section 301 duties on STS cranes will reduce exposure to and
dependence on Chinese sources, strengthen U.S. supply chain resilience
and economic security, and provide additional leverage with China to
eliminate the investigated acts, policies, and practices. In response
to comments suggesting a delayed implementation, USTR notes that the
report in this investigation assesses that there are national and
economic security risks arising from dependence on China in the
maritime, shipbuilding, and logistics sectors, including for STS
cranes. In light of these concerns, the U.S. Trade Representative has
determined it is not appropriate to defer higher tariffs on STS cranes,
nor to differentiate Chinese information technology from unfairly
priced steel superstructure or other STS crane components. In response
to comments expressing concern regarding STS cranes ordered in advance
of the proposed action, the U.S. Trade Representative has determined
not to impose the additional duties of 100 percent on STS cranes that
fulfill contracts executed prior to April 17, 2025, and that enter the
United States prior to April 18, 2027.
Intermodal Shipping Containers
Some comments indicated that tariffs on intermodal shipping
containers may negatively impact domestic carriers as containers are
largely imported for consumption by domestic carriers for domestic
intermodal shipping while containers used for international maritime
transport are not imported. One comment asserted that Chinese entities
sell containers below the cost of the steel used to produce containers.
Other comments raised concerns that tariffs on intermodal shipping
containers could reduce U.S. competitiveness as well as limit the use
of such containers for military applications or disaster relief
efforts.
Considering the specific direction of the President, the public
comments, and the advice of the Section 301 Committee, the U.S. Trade
Representative has determined not to impose additional duties on
intermodal shipping containers at this time in light of the potential
impact on domestic carriers for domestic intermodal shipping and
considering that action may, at present, provide limited additional
leverage with China to eliminate the investigated acts, policies, and
practices.
Intermodal Chassis and Parts
One comment argued that the proposed tariffs will not have
significant impact on building a U.S.-based supply chain and raised
economic impact concerns. One comment argued that the imposition of
tariffs would be superfluous as the imposition of anti-dumping and
countervailing duties on chassis from China has had a major impact on
the market share of these products in the United States. Despite these
duties, one comment noted that imports of chassis from China continue
to represent 17.8 percent of chassis imports. Some comments have raised
concerns that Chinese entities are seeking to evade existing duties and
advocated for extending tariff coverage to chassis and chassis
components where the importer fails to attest that the intermodal
chassis or parts were not manufactured by a company owned or controlled
by a Chinese person.
Considering the specific direction of the President, public
comments, and the advice of the Section 301 Committee, the U.S. Trade
Representative has determined to impose duties of 100 percent on
certain intermodal chassis and parts thereof. U.S. companies import a
significant percentage of chassis from China despite additional duties
imposed through other trade remedies, indicating a continued dependence
on China. Increasing Section 301 duties on certain intermodal chassis
and parts will reduce exposure to and dependence on Chinese sources,
strengthen U.S. supply chain resilience and economic security, and
provide additional leverage with China to eliminate the investigated
acts, policies and practices.
C. Ministerial Clarifications
In order to clarify the operation of the actions in this
investigation, the following ministerial clarifications are provided:
Clarifications Applicable to Annexes I, II, and III
For greater certainty, the term ``string'' as used in Annex I, II,
or III means a ``string of port calls''.
For greater certainty, if a vessel is excepted from entry under 19
U.S.C. 1441, or otherwise exempt from entry, then it is not subject to
the fees in Annexes I, II, or III.
For greater certainty and for purposes of application of the
Section 301 service fees under this responsive action, a vessel that is
only transiting the Panama Canal (including receiving bunkers or
facilitating a crew change) is not subject to the requirements for
entry from a
[[Page 48323]]
foreign port and would be considered coastwise for entry and clearance
requirements. Exchanging cargo or passengers for hire in the Panama
Canal would subject the vessel to entry from a foreign port. Any
arrival after a stop in an intermediate foreign port to load or unload
cargo or passengers for hire would subject the vessel to entry from a
foreign port.
Clarifications Applicable to Annex II
For greater certainty, the Annex II, Targeted Coverage, paragraph
(ii) term ``vessels arriving empty or in ballast'' applies when the
vessel does not have any cargo or passengers on board.
For greater certainty, the Annex II, Targeted Coverage, paragraph
(iii) term applies in the following manner:
Any vessel subject to Annex II that is principally
identified as a fully cellular container vessel (such as a vessel
properly identified under International Classification of Ships by Type
(ICST) code 310) with a capacity of 4,000 Twenty-Foot Equivalent Units
or less may be eligible for the targeted coverage provision of Annex
II, Targeted Coverage, paragraph (iii).
Any vessel subject to Annex II that is principally
identified as a bulk carrier (such as vessels properly identified under
ICST code 229) with an individual bulk capacity of 80,000 deadweight
tons or less may be eligible for the targeted coverage provision of
Annex II, Targeted Coverage, paragraph (iii).
Any other vessel subject to Annex II with a capacity of
55,000 deadweight tons or less (as properly identified on the vessels'
register) may be eligible for the targeted coverage provision of Annex
II, Targeted Coverage, paragraph (iii).
For greater certainty, the Annex II, Targeted Coverage, paragraph
(iv) provision (referring to vessels entering a U.S. port in the
continental United States from a voyage of less than 2,000 nautical
miles from a foreign port or point) is assessed based on the distance
actually traveled from furthest foreign port call. For illustrative
purposes:
A 6,000 TEU fully-cellular Chinese-built container vessel subject
to Annex II operates on a regular rotation making calls on the
following route: Port of Singapore, SG; L[aacute]zaro C[aacute]rdenas,
MX; Long Beach, CA, US; Oakland, CA, US; before returning to the Port
of Singapore, SG. The vessel exchanges cargo at each of these calls.
The voyage or rotation is assessed based on the farthest foreign port
call: Port of Singapore, SG. This illustrative vessel would be subject
to the Annex II fee upon arrival at a U.S. port or point from outside
the customs territory of the United States on a particular string, that
is, upon arrival at Long Beach, CA, US. The Annex II, Targeted
Coverage, paragraph (iv) provision does not apply in this hypothetical
circumstance.
For greater certainty, the Annex II, Targeted Coverage, paragraph
(iii) term ``vessels with . . . an individual bulk capacity of 80,000
deadweight tons'' may apply to both liquid bulk and dry bulk vessels,
e.g., ICST Codes 210 (Other Bulk/Oil Carrier), 211 (Ore/Bulk/Oil), 212
(Oil/Ore), 213 (Bulk/Oil), 220 (Other Bulk Carrier), 221 (Ore Carrier),
222 (Bulk/Container Carrier), 229 (Other Bulk Carrier), and 323
(Irradiated Fuel Carrier).
For greater certainty, the Annex II, Targeted Coverage, paragraph
(vi) term ``specialized or special purpose-built vessels for the
transport of chemical substances in bulk liquid forms'' may apply in
circumstances when the vessel is principally identified as ICST Code
120 (Chemical Tanker).
Clarifications Applicable to Annex III
Annex III, paragraph (d), defines a subject ``Vehicle carrier'' as
``A vessel principally identified as a `Vehicle Carrier' on CBP Form
1300, or its electronic equivalent. For information only, a vessel is
normally principally identified as a vehicle carrier when the vessel is
designed for wheeled or tracked cargo that can load itself on-board.
Cargo generally drives onto the vessel through decks via ramps, rather
than being lifted through hatches.'' For greater certainty, a ``Vehicle
carrier'' may include vessels under ICST codes 325 (Vehicle Carrier),
332 (Ro-Ro Passenger), 333 (Other Ro-Ro Cargo), or 338 (Ro-Ro
Container).
E. Further Proposed Modifications
Section 307 of the Trade Act provides that ``[t]he Trade
Representative may modify or terminate any action, subject to the
specific direction, if any, of the President with respect to such
action, that is being taken under [Section 301] if . . . such action is
being taken under section 301(b) of this title and is no longer
appropriate.'' Under Section 301(b), actions may no longer be
appropriate if they may result in impairments to other key U.S.
interests; may not adequately reduce dependencies on China in the
maritime, logistics, and shipbuilding sectors; or may present
administrability concerns. For Annex I, USTR proposes a new targeted
coverage provision in order to allay concerns about the Annex's impact
on specialized vessels carrying ethane and other natural gas liquids.
For Annex II, USTR proposes an adjustment to the targeted coverage
provision applicable to ``Lakers'' vessels. For Annex III, USTR
proposes to add a targeted coverage provision addressing smaller
vessels which support certain short-sea U.S. exports. In order to
further implement the President's direction in Executive Order 14269,
and in order to make effective the additional duties imposed in the
Notice, USTR proposes additional potential tariff lines of cargo
handling equipment.
The U.S. Trade Representative has determined to propose that it is
appropriate to modify the action in this investigation as follows:
Annex I: Add a targeted coverage provision for certain
ethane and liquefied petroleum gas (LPG) carriers;
Annex II: Remove targeted coverage for certain maritime
transport by Chinese-built ``Lakers'' vessels;
Annex III: Add a targeted coverage provision for vessels
of up to 10,000 DWT. The targeted coverage provision would expire,
unless renewed, on April 18, 2029; and,
Annex V.B: Add a new Annex V.B and impose additional
tariffs of up to 150 percent on other cargo handling equipment,
including: rubber tire gantry cranes, rail mounted gantry cranes,
automatic staking cranes, reachstackers, straddle carriers, terminal
tractors, top handlers (which may also be referred to as top loaders),
and parts of these machines.
F. Request for Public Comments
In accordance with Section 307(a)(2)(b) of the Trade Act (19 U.S.C.
2414(b)), and consistent with specific direction of the President, USTR
invites comments from interested persons with respect to the proposed
modifications as described in Section E above and as provided in the
appendix to this Notice.
USTR requests comments with respect to the following considerations
in relation to proposed modifications:
For Annex I: the potential implications of adding a
targeted coverage provision for certain ethane and LPG carriers;
For Annex II: the potential implications of removing
targeted coverage for certain maritime transport by Chinese-built
``Lakers'' vessels;
For Annex III: the potential implications of adding a
targeted coverage provision for vessels of up to 10,000 DWT, the vessel
tonnage for which targeted coverage should be provided, and duration
for such coverage; and,
For Annex V.B:
[cir] The specific products to be subject to increased duties,
including whether the tariff subheadings and product
[[Page 48324]]
descriptions listed in Annex V, Item I, should be retained or removed,
or whether tariff subheadings not currently on the list should be
added;
[cir] The level of the increase, if any, in the rates of duty;
[cir] The time period in which increased duties should take effect,
such as in 180 days or over a phase-in period of 6 to 24 months.
In commenting on the proposed modifications, USTR requests that
commenters specifically address whether the action would be practicable
or effective to obtain the elimination of China's acts, policies, and
practices. USTR also requests any economic, quantitative, or other
analysis that may further USTR's evaluation of the proposed
modifications in this notice. Commenters may provide views regarding
``effects of the modification . . . and whether any modification . . .
of the action is appropriate.'' 19 U.S.C. 2417(a)(2).
To be assured of consideration, you must submit written comments on
the proposed modifications by November 10, 2025.
G. Procedure for Written Submissions
You must submit written comments and rebuttal comments using docket
number USTR-2025-0017 on the electronic portal at https://comments.ustr.gov/s/. To submit written comments, use the docket on the
portal entitled ``Request for Comments Concerning Further Proposed
Modifications of Action in the Section 301 Investigation of China's
Targeting of the Maritime, Logistics, and Shipbuilding Sectors for
Dominance''.
You do not need to establish an account to submit comments. The
first screen of each docket allows you to enter identification and
contact information. Third-party organizations such as law firms, trade
associations, or customs brokers, should identify the full legal name
of the organization they represent, and identify the primary point of
contact for the submission. Information fields are optional; however,
your comment or request may not be considered if insufficient
information is provided.
Fields with a gray Business Confidential Information (BCI) notation
are for BCI information which will not be made publicly available.
Fields with a green (Public) notation will be viewable by the public.
After entering the identification and contact information, you can
complete the remainder of the comment, or any portion of it by clicking
``Next.'' You may upload documents at the end of the form and indicate
whether USTR should treat the documents as business confidential or
public information.
Any page containing BCI must be clearly marked `BUSINESS
CONFIDENTIAL' on the top of that page and the submission should clearly
indicate, via brackets, highlighting, or other means, the specific
information that is BCI. If you request business confidential
treatment, you must certify in writing that disclosure of the
information would endanger trade secrets or profitability, and that the
information would not customarily be released to the public.
Parties uploading attachments containing BCI also must submit a
public version of their comments. If these procedures are not
sufficient to protect BCI or otherwise protect business interests,
please contact the USTR Section 301 support line at (202) 395-5725 to
discuss whether alternative arrangements are possible.
USTR will post attachments uploaded to the docket for public
inspection, except for properly designated BCI. You can view
submissions on USTR's electronic portal at https://comments.ustr.gov/s/
by entering docket number USTR-2025-0017 in the search field on the
home page.
H. Deferred Service Fees Payment for Certain Subject Operators Under
Annex I or Annex III
Vessels principally identified under ICST codes 130 (Other
Liquified Gas Carrier), 131 (LPG Carrier), 139 (Other Liquefied Gas
Carrier), 325 (Vehicle Carrier), 332 (Ro-Ro Passenger), 333 (Other Ro-
Ro Cargo), and 338 (Ro-Ro Container) that may be subject to fee
modifications proposed in this notice for either Annex I or Annex III
of the April 23 notice may defer payment of Annex I or Annex III
service fees from October 14, 2025, through December 10, 2025.
I. Ongoing Monitoring
The U.S. Trade Representative will continue to monitor the
appropriateness of the actions being taken in the investigation, the
effects of the such action, and the effectiveness of the actions in
obtaining the elimination of the investigated acts, policies, and
practices, including to end or reverse the investigated conduct. Any
decision to further modify the actions in this investigation may be
based on a range of considerations including vessel availability,
economic impacts, international impacts, and economic security, among
others.
In considering possible modifications, the U.S. Trade
Representative will also consider the progress of policies under
Executive Order 14269, ``Restoring America's Maritime Dominance,'' as
relevant to this investigation, including coordination with allies and
partners regarding the actions taken in this investigation and efforts
to reduce dependencies on adversaries through capital investments in
U.S. shipbuilding and the establishment of a reliable funding source
for programs under the Maritime Action Plan.
If modification to the action may be appropriate, the U.S. Trade
Representative may consider the comments received in response to
previously proposed responsive actions, as appropriate.
Jennifer Thornton,
General Counsel, Office of the United States Trade Representative.
BILLING CODE 3390-F4-P
[[Page 48325]]
[GRAPHIC] [TIFF OMITTED] TN16OC25.000
BILLING CODE 3390-F4-C
Annex IV of the April 23 notice, paragraph (k), is re-numbered
paragraph (j).
Tariffs on STS Cranes and Other Cargo Handling Equipment
Note: The product descriptions that are contained in this
section are provided for informational purposes only, and are not
intended to delimit in any way the scope of the action. In all
cases, the formal language in Annex V.A governs the tariff treatment
of products covered by the action. Any questions regarding the scope
of particular HTS subheadings should be referred to U.S. Customs and
Border Protection.
----------------------------------------------------------------------------------------------------------------
HTSUS subheading or statistical Rate
reporting No. Product description (%) Timing
----------------------------------------------------------------------------------------------------------------
9903.91.14 (8426.19.00)--duties STS cranes manufactured, assembled, 100 November 9, 2025.
assessed; 9903.91.15--duties not or made using components of Chinese
assessed; * 9903.91.16 origin, or manufactured anywhere in
(grandfathered). the world by a company owned,
controlled, or substantially
influenced by a Chinese national; *
* Except for such cranes provided
for in subheading 8426.19.00, that
are fulfilling in whole or in part
an executed contract for sale dated
prior to April 17, 2025, for goods
that are entered for consumption,
or withdrawn from warehouse for
consumption, in the United States
prior to April 17, 2027.[Dagger].
[[Page 48326]]
9903.91.12 (8716.39.0090).......... Intermodal Chassis: Trailers and 100 November 9, 2025.
semi-trailers; other vehicles, not
mechanically propelled; and parts
thereof; other; other.[dagger]
9903.91.12 (8716.90.30)............ Intermodal Chassis Parts: Trailers 100 November 9, 2025.
and semi-trailers; other vehicles,
not mechanically propelled; and
parts thereof, castors, other than
those of heading 8302.[dagger]
9903.91.12 (8716.90.50)............ Intermodal Chassis Parts: Trailers 100 November 9, 2025.
and semi-trailers; other vehicles,
not mechanically propelled; and
parts thereof, other parts.[dagger]
----------------------------------------------------------------------------------------------------------------
[dagger] Scope includes chassis and subassemblies thereof for carriage of containers, or other payloads
(including self-supporting payloads) for road, marine, and/or rail transport. Scope excludes dry van trailers,
refrigerated van trailers, and flatbed trailers.
[Dagger] We note that by claiming entry under the subheadings provided in Annex V.A., the importer of record
attests that the imported cranes satisfy the criteria for that subheading.
* * * * *
Annex V.A: Tariffs on STS Cranes and Other Cargo Handling Equipment
To Modify Chapter 99 of the Harmonized Tariff Schedule of the United
States
Effective with respect to goods of China entered for
consumption, or withdrawn from warehouse for consumption, on or
after 12:01 a.m. eastern daylight time on November 9, 2025:
1. Subchapter III of chapter 99 of the HTSUS is modified by
inserting the following new headings 9903.91.12 through 9903.91.16
in numerical sequence, with the material in the new headings and
subheadings inserted in the columns of the HTSUS labeled ``Heading/
Subheading'', ``Article Description'', ``Rates of Duty 1--General'',
``Rates of Duty 1--Special'' and ``Rates of Duty 2'', respectively:
----------------------------------------------------------------------------------------------------------------
Rates of duty
-------------------------------------------
Heading/ subheading Article description 1
---------------------------------- 2
General Special
----------------------------------------------------------------------------------------------------------------
``9903.91.12................ Effective with respect to entries, on The duty provided in
or after November 9, 2025, of subheadings
intermodal chassis, subassemblies 8716.39.00,
thereof, and parts thereof (provided 8716.90.30 or
for in statistical reporting number 8716.90.50 + 100%.
8716.39.0090, or in subheadings
8716.90.30 or 8716.90.50), articles
the product of China, as provided for
in subdivision (k)(i) of U.S. note 31
to this subchapter, except as
provided in heading 9903.91.13.
9903.91.13.................. Effective with respect to entries, on The duty provided in
or after November 9, 2025, of the applicable
articles the product of China, as subheading.
provided for in subdivision (k)(ii)
of U.S. note 31 to this subchapter
(provided for in statistical
reporting number 8716.39.0090, or
subheadings 8716.90.30 or
8716.90.50), except as provided in
heading 9903.91.12.
9903.91.14.................. Effective with respect to entries, on The duty provided in
or after November 9, 2025, of ship-to- the applicable
shore gantry cranes, configured as a subheading + 100%.
high- or low-profile steel
superstructure and designed to unload
intermodal containers from vessels
with coupling devices for containers,
including spreaders or twist-locks
(provided for in subheading
8426.19.00), as provided for in
subdivision (l) of U.S. note 31 to
this subchapter, except as provided
in headings 9903.91.09, 9903.91.15 or
9903.91.16.
9903.91.15.................. Notwithstanding heading 9903.91.14, The duty provided in
effective with respect to entries, on the applicable
or after November 9, 2025, of ship-to- subheading.
shore gantry cranes, configured as a
high- or low-profile steel
superstructure and designed to unload
intermodal containers from vessels
with coupling devices for containers,
including spreaders or twist-locks
(provided for in subheading
8426.19.00), attested by the importer
that the ship-to-shore gantry cranes:
(1) are not products of China; (2)
are not manufactured, assembled, or
made using components, assemblies or
subassemblies that are products of
China, as specified in subdivision
(l)(ii) of note 31 to this
subchapter; and (3) are not
manufactured by a company or other
entity that is owned or controlled by
a Chinese person or legal entity, as
specified by subdivision (l)(v) of
note 31 to this subchapter.
9903.91.16.................. Notwithstanding heading 9903.91.14, The duty provided in
effective with respect to entries, on the applicable
or after November 9, 2025, of ship-to- subheading''.
shore gantry cranes, configured as a
high- or low-profile steel
superstructure and designed to unload
intermodal containers from vessels
with coupling devices for containers,
including spreaders or twist-locks
(provided for in subheading
8426.19.00), that: (1) are products
of China; (2) that are manufactured,
assembled or made using components,
assemblies or subassemblies that are
products of China; or (3) that are
manufactured by a company or other
entity that is owned or controlled by
a Chinese person or legal entity, as
specified by subdivision (l) of U.S.
note 31 to this subchapter, that are
attested by the importer as
fulfilling in whole or in part an
executed contract for sale dated
prior to April 17, 2025 for goods
that are entered for consumption, or
withdrawn from warehouse for
consumption, in the United States
prior to April 18, 2027.
----------------------------------------------------------------------------------------------------------------
2. Subdivision (a) of U.S. note 31 to subchapter III of chapter
99 of the HTSUS is modified by deleting ``and 9903.91.11'' wherever
it appears and inserting ``, 9903.91.11, 9903.91.12 and 9903.91.14''
in lieu thereof.
3. U.S. note 31 to subchapter III of chapter 99 of the HTSUS is
modified by inserting the following new subdivision (k) in
alphabetical order:
``(k)(i) Heading 9903.91.12 applies to intermodal chassis,
subassemblies thereof, and parts thereof, of China, provided for in
statistical reporting number 8716.39.0090 or in subheadings
8716.90.30 or 8716.90.50. For purposes of heading 9903.91.12,
intermodal chassis, subassemblies thereof, and parts thereof are
described as follows:
``The articles consist of chassis and subassemblies thereof,
whether finished or unfinished, whether assembled or unassembled,
whether coated or uncoated, regardless of the number of axles, for
carriage of containers, or other payloads (including self-supporting
payloads) for road, marine and/or rail transport. Chassis are
typically, but are not limited to, rectangular framed trailers with
a suspension and axle system, wheels and tires, brakes, a lighting
and electrical system, a coupling for towing behind a truck tractor,
and a locking system or systems to secure the shipping container
[[Page 48327]]
or containers to the chassis using twist-locks, slide pins or
similar attachment devices to engage the corner fittings on the
container or other payload.
``The articles include, but are not limited to, the following
subassemblies:
a. Chassis frames, or sections of chassis frames, including
kingpin assemblies, bolsters consisting of transverse beams with
locking or support mechanisms, goosenecks, drop assemblies,
extension mechanisms and/or rear impact guards;
b. Running gear assemblies or axle assemblies for connection to
the chassis frame, whether fixed in nature or capable of sliding
fore and aft or lifting up and lowering down, which may or may not
include suspension(s) (mechanical or pneumatic), wheel end
components, slack adjusters, axles, brake chambers, locking pins,
and tires and wheels;
c. Landing gear assemblies, for connection to the chassis frame,
capable of supporting the chassis when it is not engaged to a
tractor; and
d. Assemblies that connect to the chassis frame or a section of
the chassis frame, such as, but not limited to, pintle hooks or B-
trains (which include a fifth wheel), which are capable of
connecting a chassis to a converter dolly or another chassis.
Importation of any of these subassemblies, whether assembled or
unassembled, constitutes an unfinished chassis for purposes of this
note.
``The articles also include chassis, whether finished or
unfinished, entered with or for further assembly with components
such as, but not limited to: Hub and drum assemblies, brake
assemblies (either drum or disc), axles, brake chambers, suspensions
and suspension components, wheel end components, landing gear legs,
spoke or disc wheels, tires, brake control systems, electrical
harnesses and lighting systems.''
``(ii) Heading 9903.91.13 applies to articles of China provided
for in statistical reporting number 8716.39.0090, or subheadings
8716.90.30 or 8716.90.50, other than intermodal chassis,
subassemblies thereof, and parts thereof, of China, provided for in
statistical reporting number 8716.39.0090 or in subheadings
8716.90.30 or 8716.90.50, which are subject to the additional duties
provided for in heading 9903.91.12.''
4. U.S. note 31 to subchapter III of chapter 99 of the HTSUS is
modified by inserting the following new subdivision (l) in
alphabetical order:
``(l)(i) Heading 9903.91.14 applies to ship-to-shore gantry
cranes, configured as a high- or low-profile steel superstructure
and designed to unload intermodal containers from vessels with
coupling devices for containers, including spreaders or twist-locks,
provided for in subheading 8426.19.00, that are: (1) products of
China; (2) products of countries other than China that contain
components, assemblies or subassemblies, of China, as specified in
subdivision (l)(ii) of this note; or (3) products that are
manufactured by a company or other entity that is owned or
controlled by a Chinese person or legal entity.
``Heading 9903.91.14 shall not apply to entries under headings
9903.91.09 (as long as it is operative), 9903.91.15 or 9903.91.16.
Notwithstanding U.S. note 1 to this subchapter, products of China
that are subject to the additional duties imposed by heading
9903.91.14 shall also be subject to the additional duties imposed by
heading 9903.92.10.''
``(ii) A ship-to-shore gantry crane of a country other than
China that contains one or more of the following components,
assemblies or subassemblies that are products of China shall be
considered to be a ship-to-shore gantry crane of China for purposes
of heading 9903.91.14:
a. the boom;
b. the trolley;
c. the spreader;
d. the cabin;
e. the legs;
f. the cable reel;
g. the power supply;
h. the bogie set and wheels; and
i. any information technology equipment used to operate or
control the crane.''
``(iii) A ship-to-shore gantry crane that is manufactured by a
company or other entity that is owned or controlled by a Chinese
person or legal entity shall be considered to be a ship-to-shore
gantry crane of China for purposes of heading 9903.91.14.''
``(iv) For purposes of heading 9903.91.15, by claiming this
heading, the importer attests that the ship-to-shore gantry cranes:
(1) are not products of China; (2) are not manufactured, assembled,
or made using components, assemblies or subassemblies that are
products of China, as defined in subdivision (l)(ii) of this note;
and (3) are not manufactured by a company or other entity that is
owned or controlled by a Chinese person or legal entity, as defined
in subdivision (l)(v) of this note.
``(v) For purposes of headings 9903.91.14 and 9903.91.15:
a. A ``company or other entity that is owned or controlled by a
Chinese person or legal entity'' means:
``1. an entity or instrument of the People's Republic of China,
(including The Government of the People's Republic of China);
2. A natural person who is a citizen of the People's Republic of
China;
3. A partnership, association, corporation, organization, or
other combination of persons organized under the laws of or having
its principal place of business in the People's Republic of China;
4. An entity organized under the laws of the United States or
any other jurisdiction that is subject to the ownership, control, or
direction of another entity that qualifies under subdivisions
(v)(a)(1)-(3).
5. An entity is ``subject to the ownership, control, or
direction of'' another entity if:
(A) 25 percent or more of the entity's board seats, voting
rights, or equity interest are cumulatively held by that other
entity, whether directly or indirectly via one or more intermediate
entities; or
(B) the entity has entered into a licensing arrangement or other
contract with another entity (a contractor) that entitles that other
entity to exercise effective control over the manufacturing or
assembly (collectively, ``production'') of a ship-to-shore gantry
crane, its components, assemblies, subassemblies, or other materials
that would be attributed to the entity.''
``b. ``The Government of the People's Republic of China'' means:
``1. A national or subnational government of the People's
Republic of China;
2. An agency or instrumentality of a national or subnational
government of the People's Republic of China;
3. A dominant or ruling political party (e.g., Chinese Communist
Party (CCP)) of the People's Republic of China; or
4. A current or former senior foreign political figure of the
People's Republic of China.''
``c. ``Senior foreign political figure'' means:
1. a senior official, either in the executive, legislative,
administrative, military, or judicial branches of the People's
Republic of China (whether elected or not);
2. a senior official of a dominant or ruling foreign political
party (e.g., CCP); or
3. an immediate family member (spouse, parent, sibling, child,
or a spouse's parent and sibling) of any individual described in
(v)(c)(1) or (v)(c)(2).
``In order to be considered ``senior,'' an official should be or
have been in a position of substantial authority over policy,
operations, or the use of government-owned resources.''
``d. For purposes of determining whether an entity indirectly
holds board seats, voting rights, or equity interest in a tiered
ownership structure:
``1. If a ``parent'' entity that qualifies under subdivisions
(v)(a)(1)-(3) directly holds 50 percent or more of a ``subsidiary''
entity's board seats, voting rights, or equity interest, then the
parent and subsidiary are treated as equivalent in the evaluation of
control, as if the subsidiary were an extension of the parent. As
such, any holdings of the subsidiary are fully attributed to the
parent.
2. If a ``parent'' entity that qualifies under subdivisions
(v)(a)(1)-(3) directly holds less than 50 percent of a
``subsidiary'' entity's board seats, voting rights, or equity
interest, then indirect ownership is attributed proportionately.''
``e. For purposes of determining whether an entity has effective
control, an entity that qualifies under subdivisions (v)(a)(1)-(3)
that has a contractual relationship to determine the quantity or
timing of production; to determine which entities may purchase or
use the output of production; to restrict access to the site of
production to the contractor's own personnel; or the exclusive right
to maintain, repair, or operate equipment that is critical to
production, is deemed to have effective control over an entity.''
* * * * *
Proposed Modifications to Annex I
* * * * *
Targeted Coverage
The following targeted coverage provision applicable to Annex I
is provided:
As of October 14, 2025, an LPG carrier (ICST Code 131) or Other
Liquified Gas Carrier (ICST 130) that is ordered before April 17,
2025, and is in service and entered into a long-term time charter
agreement (that
[[Page 48328]]
is, 20 years or more) prior to December 31, 2027, will be considered
owned and operated by the charterer in the time charter contract.
Proposed Modifications to Annex II
Targeted Coverage
* * * * *
The fees imposed in this Annex do not apply to the following
Chinese-built vessels:
* * * * *
[GRAPHIC] [TIFF OMITTED] TN16OC25.001
Proposed Modifications to Annex III
* * * * *
Targeted Coverage
The service fees imposed in this Annex do not apply to the
following vessels subject to this Annex:
* * * * *
(iii) U.S.-flag vessels of up to 10,000 DWT. The targeted
coverage provision will apply as of October 14, 2025, and expire,
unless renewed, on April 18, 2029.
Annex V.B: Proposed Tariffs on Certain Additional Maritime Cargo
Handling Equipment of China
The Trade Representative proposes to assess additional duties on
the following products of China at the proposed levels indicated
below:
------------------------------------------------------------------------
Item HTSUS Proposed rate
------------------------------------------------------------------------
Rubber Tire Gantry Cranes: HTSUS 8426.19.00 Up to 150%.
These gantry cranes are tire-
mounted cranes for high-volume
container handling, and are
often suitable for both port
and intermodal operations.
Rail Mounted Gantry Cranes: HTSUS 8426.19.00 Up to 150%.
These gantry cranes are rail-
mounted cranes used for high-
volume container handling, and
are suitable for both port and
intermodal operations. These
cranes move along rails fixed
to the ground.
Automatic Stacking Crane (ASC): HTSUS 8426.19.00 Up to 150%.
These cranes are rail-mounted
cranes for yard stacking and
in-stack transportation of
containers. ASCs deposit and
lift containers from dedicated
interchange areas located at
both ends of the stack. These
cranes move along rails fixed
to the ground.
Reachstackers (such as a HTSUS Up to 150%.
contstacker, railstacker and 8426.41.00,
transtacker) These are mobile HTSUS
self-propelled machines used 8426.49.00.
to load and unload shipping
containers in dockyards, and
similar transportation
terminals, as well as to stack
the shipping containers one on
top of the other.
Straddle carriers: Straddle HTSUS 8426.12.00 Up to 150%.
carriers, consist of a chassis
of the ``straddle'' type,
generally with vertical
telescopic members for
adjusting the height. This
chassis is normally mounted on
four or more wheels which
usually serve both as driving
and steering wheels. Often
used in marine environments to
lift containers.
Terminal Tractors and Parts HTSUS Up to 150%.
thereof: Terminal tractors 8709.11.00,
typically fall under Heading HTSUS
8709 unless they come equipped 8709.19.00,
with lifting/handling HTSUS
equipment installed, including 8709.90.00,
a fifth wheel, in which case HTSUS
the terminal tractor falls 8701.95.50.
under 8701.95.50.
Top Handlers/Top Loaders: Top HTSUS Up to 150%.
handlers, also known as top 8427.20.80,
loaders, are heavy-duty HTSUS
vehicles used in ports and 8429.51.10,
terminals to move and stack HTSUS
loaded shipping containers. 8429.51.50.
They lift containers from the
top, making them ideal for
loading and unloading trucks,
trains, and stacking
containers within terminals.
Top handlers can lift
containers weighing up to
100,000 pounds and stack them
three or five high.
Components of these cranes, HTSUS Up to 150%.
stackers, carriers, tractors, 8431.20.00,
handlers, and loaders (not HTSUS
more specifically described in 8431.41.00,
another heading). HTSUS
8431.49.10.
------------------------------------------------------------------------
USTR proposes to assess these additional duties in addition to
duties assessed under other authorities, including related to
national security, national emergency, Column 1 of the HTSUS, or
anti-dumping or countervailing duties (AD/CVD).
[FR Doc. 2025-19568 Filed 10-15-25; 8:45 am]
BILLING CODE 3390-F4-P