The Impact on Sale Leaseback Financings of the USTR Notice of Action Regarding Fees on Chinese-Owned Vessels
Asset Finance attorneys Mike Timpone, Sophia Agathis, Kurt Plankl and Nicholas Kaasik contributed to the "In-Depth Guides" section of the 2025 Chambers USA Guide. Their piece analyzes the U.S. Trade Representative's (USTR) action to impose fees on certain vessels owned, operated or built in China following an investigation under Section 301 of the Trade Act of 1974 into China's practices and policies regarding the maritime, logistics and shipbuilding industries. The fees take effect in October 2025, and the authors note they have already had a significant effect on vessel financing structures as owners and operators try to determine whether the measures apply to sale leaseback financings with Chinese entities. Their piece summarizes how the fees are structured and assessed before listing key questions the USTR action raises, such as who should be listed as the owner of the vessel on the CBP Form 1300 at port. They also provide recommendations for companies affected by the fees and looking to alternative financing sources to mitigate costs.