AAPA advises USTR to revoke tax on Chinese STS cranes

AAPA advises USTR to revoke tax on Chinese STS cranes

The American Association of Port Authorities (AAPA) has urged US Trade Representative (USTR) Ambassador, Katherine Tai, to revoke the 25 per cent tax on Chinese-built ship-to-shore (STS) cranes.

AAPA noted that while it supports initiatives to increase local manufacturing of vital port equipment, there are currently no enterprises capable of producing massive cranes.

In its remarks, AAPA focused on the proposed tariff’s economic impact. As there are reportedly no domestic alternatives, the levy will raise infrastructure construction costs by millions of dollars per port.

It may also require port authorities and private marine terminal operators (MTOs) to reduce plans for new infrastructure development to cover higher expenditures.

READ: AAPA denies Chinese security threats at ports

AAPA was supported by a group of ports and industry partners that shared similar ideas. According to AAPA, at least seven ports have ordered 35 STS cranes from Chinese manufacturers.

The projected 25 per cent levy has resulted in unanticipated expenses of at least $131 million for ports that signed contracts before the announcement.

AAPA has also taken steps to incentivise domestic manufacture of STS cranes through a cooperative agreement with the Maritime Administration (MARAD).

In March, Shanghai Zhenhua Heavy Industries (ZPMC) refuted allegations of potential cybersecurity risks associated with its cranes.

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