Significant changes to the initial proposed fees placed on Chinese-made vessels arriving at American ports have been announced by the Office of the United States Trade Representative (USTR). This is viewed as a step in the right direction to mitigate impacts on commodity shipments.

The National Corn Growers Association (NCGA) said any fees placed on Chinese vessels could be passed on to American farmers. They called on the USTR to consider the impact of these fees after the initial proposal was announced. NCGA estimated the original proposal could have cost farmers up to $.64 per bushel. This would be a 14% increase from current price levels, reducing exports and impeding market access.

The impact of the final revised proposal has yet to be determined. A key change is that Chinese vessel operators and Chinese-built ships would be assessed a fee per voyage and not per port, as was in the original proposal. The fees cannot be imposed more than five times per year, and short voyages, vessels arriving empty and ships carrying less than 50,000 tons will be exempt from the fees.

The fees will be phased in with fees set at zero for the first 180 days to allow businesses to adjust.

NCGA President Kenneth Hartman Jr. said the association is working to understand how this new version will impact the corn industry. He added that it appears more workable than the initial proposal.

Read more on the final USTR fees for Chinese-made vessels arriving at American ports here.