Officials from the Port of Seattle have warned of possible loopholes after new levies on Chinese ships docking in American ports were announced by the Office of the United States Trade Representative (USTR).
According to the officials, if shippers choose to change direction through Canada or Mexico, the new fees could face accidental consequences.
The Port wants to ensure that the policy fortifies seaports trade through the US rather than undermining it by having ships reroute elsewhere.
The Port wants USTR to make a move
In line with this, the Port is urging the USTR to address the “land border loophole”.
“They have good infrastructure to be able to take over that work if these fees unintentionally create an incentive to move those goods through land borders,” Port of Seattle commissioner Ryan Calkins said according to K5.
“We’re really trying to close that loophole and make sure that these fees, any fees that are collected, incentivise more trade through our seaports,” he added.
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Behind the new policy
At least US$50 per net tonne for each sail to the US will be charged under the new policy for every Chinese-owned or -operated vessel, with a maximum of five times each year.
The fee will also get a US$30 hike annually until 2028.
According to Calkins, the objective is to reduce dependency on ships manufactured in China, which controls the majority of the world’s commercial shipbuilding market.
The United States constructed fewer than 10 commercial ships last year and currently controls around 0.1 percent of that industry, according to the Associated Press.
“We’re going to continue to work with the administration on a use of these fees that reduce costs for consumers, reduce costs for the businesses that rely on ports, and see that it really does reinvigorate the maritime industry in the United States,” Calkins stated.
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