USTR Extends Section 301 Maritime Fee, Cargo Handling Equipment Duty Suspension to January 9
Highlights
- The Office of the U.S. Trade Representative (USTR) has finalized a further two-month suspension of the Section 301 actions in its investigation of China's targeting of the maritime, logistics and shipbuilding sectors, effective November 9, 2026, through 11:59 p.m. ET on January 9, 2027.
- During the suspension period, no party will accrue liability for or be required to pay the Section 301 port fees on maritime transport services or additional duties on ship-to-shore cranes and other Chinese cargo handling equipment.
- The notice finalizes the proposal discussed in a previous Holland & Knight alert and is scheduled for official publication in the Federal Register on November 10, 2026.
In April 2025, and as modified in October 2025, the U.S. Trade Representative (USTR) imposed fees on certain maritime transport services and duties on ship-to-shore (STS) cranes and other cargo handling equipment of China under Sections 301 and 307 of the Trade Act of 1974. Following the November 1, 2025, trade and economic deal between President Donald Trump and Chinese President Xi Jinping, USTR suspended those actions for one year, from November 10, 2025, through November 9, 2026. With negotiations with China still ongoing, USTR proposed on October 23, 2026, to extend the suspension by two months and requested public comment. (See Holland & Knight's previous alert, "USTR Proposes 2-Month Extension of Suspension of Section 301," October 26, 2026.)
The Final Action
Citing the president's direction and the need for further discussion with China, USTR issued a notice in the Federal Register in which it determined that the action as modified is "no longer appropriate" and further suspended it until January 10, 2027. To implement the change, Harmonized Tariff Schedule (HTS) headings 9903.91.12 through 9903.91.16 are amended to replace "November 10, 2026" with "January 10, 2027." The suspension covers the maritime service fees under Annexes I, II and III of the April 23, 2025, notice and duties in Annex V.A of the October 16, 2025, notice, each as modified.
USTR received approximately 60 unique comments. Supporters cited the need to avoid shipping cost increases and commercial disruption; opponents argued the action is needed to spur investment in U.S. shipbuilding and related industries, such as containers. Some commenters urged permanent suspension of the Annex III fees or Annex IV restrictions, while others urged ending the suspension of the cargo handling equipment tariffs and addressing those tariffs separately from the maritime service fees. USTR stated it will continue discussions with China and pursue domestic shipbuilding initiatives under America's Maritime Action Plan.
What This Means for Clients
Short-Term Relief, Not a Resolution: The two-month extension is notably shorter than the original one-year suspension, signaling that USTR is keeping pressure on China during the ongoing trade negotiations. Vessel owners and operators, charterers, liner carriers, shippers and importers of cargo handling equipment should treat January 10, 2027, as a live deadline and avoid assuming further extensions.
Multiple Outcomes Remain Possible: USTR will consider before January 10, 2027, whether to continue the suspension or take further action and may rely on comments already received on previously proposed responsive actions, meaning changes could occur without a lengthy new comment process. The comment record suggests that the cargo handling equipment tariffs could be decoupled from the maritime service fees, so importers of STS cranes and related equipment should be prepared for those duties to return on a different track.
Recommended Steps: Clients should review charter parties, bills of lading, service contracts and equipment purchase agreements for fee and tariff pass-through and allocation provisions, model fee and duty exposure for vessel calls and entries on or after January 10, 2027, and confirm that customs and compliance processes can be reactivated quickly.
Holland & Knight's USTR Fees Task Force will continue to monitor the Federal Register and U.S.-China negotiations for developments. For questions about how these developments may affect your operations, please contact the authors.
Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.