China started collecting special port fees from U.S.-owned, operated, built, or flagged vessels on Tuesday, but said Chinese-built ships would be exempted from the levies.

China’s ministry of transportation said ships built in China are exempt from payment. In a last minute notice, the ministry announced on Tuesday that Chinese-built vessels are exempted from the port fees, even if they are owned or operated by US-linked companies or if they are flying the American flag.

The details published by the ministry of transport clarify the specific provisions on exemptions, including for ships built by China and empty ships entering Chinese shipyards for repair. The announcement also refers to other vessels that are deemed exempted from payment, though no further details were provided.

The notice on implementation measures by the Chinese ministry reiterated the five categories of vessels that will be charged at its ports.

The measure will be rolled out in four phases for vessels calling into Chinese ports per voyage: RMB 400 per net tonne starting Oct 14, 2025; RMB 640 per net tonne from Apr 17, 2026; RMB 880 per net tonne from Apr 17, 2027; and RMB 1,120 per net tonne from Apr 17, 2028.

China’s ministry of transportation said the fees will be collected on:

(1 & 2) Vessels owned or operated by U.S. companies, organizations, or individuals.

(3) Vessels owned or operated by companies, organizations in which US stakeholders hold at least 25% or more of the equity (voting rights, board seats).

(4) Ships flying the American flag.

(5) Ships built in the United States.

However, China has now added a specific exemption that the fees will not be applicable to ships built in China, even if they fall into the first (1 to 4) categories.

If a vessel calls at multiple Chinese ports on the same voyage, it shall pay the special port dues only at the first port of call and shall not be charged at subsequent ports of call. Special port dues may not be charged for more than five voyages of the same vessel in a year.

The Chinese transport ministry added that the annual billing cycle will begin on April 17.