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The President issued an Executive Order on April 9, 2025 aimed at “Restoring America’s Maritime Dominance.” The order covers numerous topics including a Maritime Action Plan, Ensuring Security and Resilience, PRC’s unfair actions, and other topics.
One key topic addresses the enforcement/collection of HMF (Harbor Maintenance Fees) and other charges. Historically, HMF was payable on all entries of goods by ocean mode of transport at US ports (including inland ports where cargo imported at a sea port and moved in bond inland). Cargo routed through Canada and Mexico and entered by land borders were not assessed the HMF fees. The executive order directs the Secretary of Homeland Security to take steps to collect HMF and any other fees etc. PLUS a 10% service fee for cargo first arriving in Canada or Mexico by vessel.
Another key issue addressed is the “Targeted and Phased Action to Reverse Chinese Dominance and to Restore American Shipbuilding.” These actions will occur in two phases. For the first 180 days, applicable fees will be set to zero. After 180 days:
• Fees on vessel owners and operators of China based on net tonnage per U.S. voyage, increasing incrementally over the following years - the fee would start at $50/NT in 180 days and increases by $30/NT per year over the next three years;
• Fees on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years - the fee would start at $18/NT or $120 per container in 180 days, and would increase by $5/NT per year, or the same proportional yearly amount per container (e.g., in year 2, to $154 per container), over the next three years; and
• To incentivize U.S.-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity - the fee would start at $150 per Car Equivalent Unit (CEU) capacity of the entering non-U.S. built vessel in 180 days.
To read all related documents, check out the links below.
On June 11, the President announced on Truth Social that the “the deal with China is done.” According to the post, the President and the President of China are working toward final approval.
The Truth Social posting by the President states that the tariffs on Chinese origin goods will be 55%. The 55% will be a combination of existing tariffs including 10% IEEPA reciprocal tariffs, 20% IEEPA drug/border tariffs, and the 25% Section 301 tariff that covers most Chinese origin goods (note some Section 301 rates are currently higher and some are lower).
Full details are not yet known.
Check out the links below:
For June, we are highlighing Maria “Connie” Villarreal. Connie came to JAS in 2022 and found a great interest in Customs and wanted to learn more. She wanted to expand her skills and take the opportunity to serve as a team leader and trainer for colleagues. Connie firmly believes in embracing opportunities for growth and shows enthusiasm about exploring fresh perspectives and experiences that promote career progression.
As a spouse and parent of four children (two that have reached adulthood), Connie makes time for hobbies and family bonding. She loves to read romance and thriller books, watching movies, and spending time with her loved ones. She also cherishes opportunities to indulge in spa days with her youngest daughter and cook meals with her son.
Connie is another example that “People Make the Difference.”
In May, JAS Forwarding (USA) Inc. Compliance team met at the USA Corporate Headquarters in Atlanta, GA. During the meetings, the team worked to align on all of the trade changes and learn from each other to continue to provide positive impacts to our clients.
From Left to Right: Ted Myron, Xenia Vazquez, Leah Ellis, Calvin Oh, Margaret Christian, Casey Hughes, Laurie Arnold, Scott Cassell, and Yvette Sosa
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