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PRESIDENT'S NOTES

The New Trade Barrier: U.S. and China Port Taxes Explained

Dear Colleagues,


Tariffs and taxes come in all shapes and sizes. This month, we have presented digital and in-person seminars on tariffs and trade regulations. October 14 heralded the start of an added trade tax: new port taxes levied by the United States and China on ships entering their ports.  

 

A bit of history. On April 17, 2025, the Office of the United States Trade Representative published a Federal Register notice that it was taking “action on the Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance to eliminate China’s acts, policies, and practices targeting the maritime, logistics, and shipbuilding sectors for dominance.” The action included new fees targeting vessels with Chinese connections and to foreign-built vehicle carriers. These fees apply to vessels subject to entry requirements. Foreign, non-Chinese-owned shipping lines also will be subject to these port fees if they use Chinese-built ships to transport freight to U.S. ports. A second phase of port taxes will cover LNG tankers three years from now.


In response, China announced October 10 that it will charge special port fees starting October 14 on American-owned, -operated or -built ships. Carriers using Chinese-built ships will be exempt. Note these announcements are in place as of the writing date of this note. 


What does this mean for U.S. companies and consumers? In the short term, it’s doubtful the United States will be able to meet shipbuilding demand. Unless the United States and China eliminate the new port taxes, transportation costs will rise. Even if non-Chinese shipping companies alter their routes to use only non-Chinese vessels, some carriers will have fewer options and supply lines will lengthen for many.  

 

The United States has a shipbuilding industry focused on making vessels and systems for U.S. defense. A study published last year by McKinsey & Company noted: (mckinsey.com/industries/aerospace-and-defense/our-insights/charting-a-new-course-the-untapped-potential-of-american-shipyards)



  • “U.S. [commercial] shipbuilding output has decreased by more than 85 percent since the 1950s, while the number of American shipyards capable of building large vessels has fallen by more than 80 percent.”
  • The United States builds “0.2 percent today, as measured by gross tonnage. Conversely, China, Japan, and South Korea now combine for more than 90 percent of global commercial shipbuilding.”

 

Regionally, Philly Shipyard is owned by South Korean shipbuilder Hanwha, one of the world’s largest ship manufacturers. China has placed sanctions on five of its U.S.-linked subsidiaries. In July, the company announced plans to build a new U.S.-flagged LNG tanker. Most of it, however, will be built in Korea. Some workers from Philly Shipyard will be trained overseas, and Philly Shipyard will “oversee regulatory compliance and safety certifications required for the ship's U.S. registry.” (reuters.com/business/energy/hanwha-entities-build-us-flagged-lng-carrier-2025-07-22). The tanker will not be delivered until 2028, illustrating the long lead time facing the U.S. shipbuilding industry. 

 

While the port taxes are not traditional tariffs, the effect may well be the same. Expect higher prices and longer supply chains in the short term. 

MEMBER SPOTLIGHT

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New Members

4B Advisors Inc.


4B is an international consulting firm that helps businesses manage the challenges of global trade. Based in Kyiv, the company specializes in customs law, export consulting, international logistics and e-commerce compliance. With a presence in more than 50 countries, 4B supports companies entering new markets through legal services, customs clearance, product certification and digital trade strategies.


The firm works with clients across sectors, including manufacturing and technology, offering solutions to simplify cross-border operations, reduce risk and support international growth. Its legal experts, trade advisers and logistics professionals focus on strengthening Ukraine’s export potential and promoting transparent, sustainable global commerce.


Learn more: 4b.ua/en

Bridge Art Gallery


Bridge Art Gallery is a contemporary arts organization with locations in Wilmington, Delaware, and Jersey City, New Jersey. Founded by Christopher and Cheryl Mack, the gallery showcases work by emerging and established artists while expanding access to the arts in underserved communities.


In addition to exhibitions, Bridge Art Gallery works with government agencies, nonprofits and community groups to blend art into public spaces and civic and wellness programs. Through public art installations, cultural events and workshops, the gallery supports community revitalization through the arts.


Learn more: bridgeartgallery.net

ANNOUNCEMENTS

From Our Friends at Bridge Art Gallery

Join Bridge Art Gallery for a global art show!


What’s happening in Morocco (Dec 18–Jan 18):

  • We’re curating a special art exhibition at The Meydene within the M Avenue complex in Marrakech.
  • On December 30, we’re hosting Bridge Visionaries | The Salon AFCON Series, an invite-only dialogue bringing together leaders across culture, sport, entertainment, and sustainability.


Why this matters for Delaware businesses:

  • AFCON attracts a global soccer audience, the same community likely to travel to the U.S. for the 2026 World Cup.
  • With many 2026 matches in Philadelphia and Wilmington positioned as a regional hub, this is a timely chance to introduce Delaware to the global soccer-enthusiast ecosystem.
  • We’re encouraging Delaware companies to market directly to this audience alongside our Marrakech programming.


Delaware businesses interested in partnering with Bridge Art Gallery in Marrakech for on-site visibility, co-branding, or content integrations please contact Cheryl Mack at cheryl@bridgeartgallery.net.

WTC Delaware is Hiring!

Position Summary:


World Trade Center Delaware is seeking a visionary and results-oriented Executive Director to lead the organization and drive its mission forward. Reporting to the Board of Directors, the Executive Director will be responsible for the overall strategic direction, operational management, financial sustainability, and external relations of WTC Delaware. Working closely with the Delaware General Assembly, state agencies, and other partners, this is an exciting opportunity for a dynamic leader to shape the future of international trade in Delaware and make a significant impact on the state's economic landscape.


Read more: wtcde.org/join-our-team.html

EDGE 2.0 Grant Competition

Join Export Delaware's Webinar

What’s Happening in Customs?

Understanding Processes for International Shipping

By: Brian Dill, Communications Intern

World Trade Center Delaware and U.S. Commercial Service Philadelphia hosted a webinar, Getting It Right at Customs: Navigating HS Codes and Rules of Origin, for businesses expanding sales or adjusting international operations.


The event Sept. 18 featured Justin Skeen, survey statistician of the Census Bureau, and Michael J. Ford, president of Tradebridge Consulting.


Skeen provided information about protocols for labeling products using Harmonized Tariff Schedule or Schedule B codes. HTS codes are represented by a six-digit prefix that is internationally recognized in more than 200 countries. Schedule B codes strictly apply to exports of the United States, which can be recognized by a 10-digit tariff code. From electric pianos to male cows, Skeen shared examples of how to classify products and how to label a product’s code. Skeen wrapped up his discussion with errors to avoid, labeling tips, and his perspective on artificial intelligence’s impact on international labeling and shipments.


Ford highlighted the difference between nonpreferential and preferential Rules of Origin. Nonpreferential rules are used for general trade where no trade agreement is in place. Country of Origin rules apply to components and the finished product. Products are identified if they were wholly made in one country, or if they underwent significant changes that altered the product’s makeup. Manufacturers must be able to identify country of origin for components and finished products. Preferential rules apply to goods imported under free trade pacts such as the United States-Canada-Mexico Agreement, which follows a system of preferences under regional trading blocs. Understanding the difference between these rules is significant because they determine required documentation for product shipments. Ford closed his presentation by sharing tips on how to navigate complex supply chains.


Skeen and Ford ended the program by emphasizing that exporters and importers must be aware of the agreements and rules covering their products and components, including country of origin, free trade agreements, classification rules and how to avoid common mistakes.

Delaware Art Meets Business:

Fostering a Creative Economy

By: Brian Dill, Communications Intern

World Trade Center Delaware and Film Brothers were proud to present the Wilmington International Film Festival with Art Meets Business 2025 at Hercules Plaza. The event connected artists, small-business owners, government officials, and corporate professionals to discuss how creativity intersects with commerce.


The evening began with refreshments and networking in the Chancery Market. Participants represented art studios, film studios, advertising agencies, government, and seemingly unrelated sectors such as IT and construction. The event continued at the Screening Room for the Art Means Business panel discussion. Panel members included Carol Arnott-Robbins of NEWS4Women; Neil Kirschling of Delaware Arts Alliance; Patti Grimes of the Joshua M. Freeman Foundation; Tommy Abel of Global Holdings; Cheryl Mack of Bridge Art Gallery; Nancy Dibert of Epic Marketing; and Matt Del Pizzo of Del Pizzo Construction.


As of 2021, Delaware’s creative arts contributed $3.7 billion to the state’s economy, and provided over 18,000 jobs, employing about 4.1% of Delaware’s workforce, according to Delaware Arts Alliance. As panelists noted, however, employment is not confined to performers and artists. Behind the scenes, thousands of people are involved in the production of artistic endeavors, from gallery owners and venue managers to construction workers.


The kind of thinking that fuels the arts leads to creative problem solving in all types of businesses, as evidenced by the diverse occupations and industries represented by the panelists. The arts are not a luxury, they are a necessity.

The creative industries have become economic drivers in Delaware, with no signs of stopping. Art truly means business.


CREATE Plan | Delaware Arts Alliance. (2025, September 15). Delawareartsalliance.org delawareartsalliance.org/creativeeconomy

Costs, Duties and Tariffs:

Overcoming Barriers to International Growth

By: Brian Dill, Communications Intern

World Trade Center Delaware held a webinar, Smarter Tariff Strategies, to show how exporters and importers can rethink supply chain plans, recover costs, and eliminate or reduce duties, presented by Mike Allocca, president of Allocca Enterprises.


Tariff reduction blueprints include using an ATA carnet, temporary importation under bond or through classification system reengineering. These methods offer benefits such as providing insurable value to a good, duty-free imports, or classifying the good under a more favorable Harmonized Tariff Schedule. Companies must accurately label and classify products for customs authorities to assess duties, if applicable.


Allocca shared that only 20 of the world’s 220 countries operate under a Free Trade Agreement, although this number is expected to grow to 30 nations soon. FTAs provide lower or duty-free rates on eligible goods, resulting in higher trade in FTA regions than in all Harmonized Tariff Schedule Codes or non-FTA regions combined. The U.S. Department of Commerce’s FTA Tariff Tool for documentation and rules of origin, with code classifying tools such as the Global Reporting Initiative and Cross Border Shipping, are valuable international trade resources.


Allocca also showed methods to lower and delay duties. Short-term strategies include using the first sale rule, validation methods, or storing goods in a bonded warehouse. Long term, companies can operate in a foreign trade zone, which can delay or eliminate duties, reduce insurance rates, and limit time constraints. Drawbacks, however, can include steep initial costs, more complex recordkeeping, and other implementation challenges.


Allocca ended his presentation by discussing secondary strategies such as alternative sourcing or third-party warehousing. Properly applying international trade rules and aids helps companies reduce, delay or eliminate duties.

Finding Business Success in an Age of Disruption

By: Brian Dill, Communications Intern

World Trade Center Delaware and Export Delaware hosted the Turning Global Challenges into Business Growth event featuring Richard Zurba on Oct. 17.

Zurba, director of Zurcom International, showed how companies can use challenges from changing government policies and shifts in worldwide demographics, economics and culture to their advantage to achieve business growth.


Zurba discussed how the shift by the government to a more mercantilist philosophy is a turn away from the United States’ role as the “world’s policeman” to one based on commercial diplomacy. This presents more opportunities for U.S. exporters.


Several challenges, however, affect international business growth. Active war in Eastern Europe, the Israel-Gaza conflict, differing interests among the growing number of BRIC countries, and China’s slowing economic growth may give opportunities for new markets to emerge, particularly in Africa.



The African continent is expected to reach a population of 2.5 billion by 2035. This growth, specifically in the middle class, makes Africa a growing market. Africa’s many countries present opportunities because of linguistic, environmental and economic trends. Africa’s growing use of English has led to former French colonies such as Gabon and Togo to join the Commonwealth of Nations, the political association of mostly former British Empire territories.

Much of the African continent is vulnerable to climate change. While parts of Africa are experiencing deforestation, the situation has improved in other parts of the continent, resulting in a “greening” of an area adjoining the Sahara. This greening will produce more arable land for agriculture with more products for processing and export.


The formation of the African Continental Free Trade Area has promoted regional integration through the creation of a single African market. This will give U.S. companies an opportunity to trade with more countries under uniform regulations and practices, much like the European Union.


Zurba closed his presentation by recommending that companies become more informed about culture and history to better interact with the world. He introduced the concept of systematic inventive thinking and explained how high-impact exporters use it to focus on corporate investment, forming dedicated international teams, and using market-specific strategies to succeed internationally. He said overcoming global disruptions is not easy, but companies can accomplish this by changing their perspective and thinking creatively.

Akwaba 2025: USA Edition

News You Can Use

DFC Trade Opportunity Open for Comment

The US International Development Finance Corporation project Environmental and Social Impact Assessment for the Aqaba-Amman Water Desalination and Conveyance (AAWDC) Project, Jordan is soliciting comments under the required Environmental and Social Impact Assessment (ESIA) or Audit. 


Please click on the here for project documents. To submit comments, please email to: ODP@dfc.gov

New Restrictions Announced on Future H-1B Visa Petitions

On September 19, 2025, the President issued a Proclamation, Restriction on Entry of Certain Nonimmigrant Workers, to address systemic abuse of H-1B nonimmigrant visas. Pursuant to sections 212(f) and 215(a) of the Immigration and Nationality Act (INA), 8 U.S.C. 1182(f) and 1185(a), the entry into the United States of aliens as nonimmigrants to perform services in a specialty occupation under section 101(a)(15)(H)(i)(b) of the INA, 8 U.S.C. 1101(a)(15)(H)(i)(b), is restricted, except for those aliens whose petitions are accompanied or supplemented by a payment of $100,000. This guidance applies to H-1B employment-based petitions filed after 12:01 AM ET on September 21, 2025.


This proclamation only applies prospectively to petitions that have not yet been filed. The proclamation does not apply to aliens who: are the beneficiaries of petitions that were filed prior to the effective date of the proclamation, are the beneficiaries of currently approved petitions, or are in possession of validly issued H-1B non-immigrant visas. All officers of United States Citizenship and Immigration Services shall ensure that their decisions are consistent with this guidance. The proclamation does not impact the ability of any current visa holder to travel to or from the United States.

Restructured US Commercial Service Regions

TRADE OPPORTUNITIES & TENDERS

WTC Delaware provides a full range of international trade-related services with an in-depth focus on the export/import of services and manufactured goods. These pages contain brief information on opportunities that could offer exciting possibilities for U.S. companies in various industry sectors.


Due to the government shutdown, there are no new trade leads this month. We are featuring trade leads from last month for your reference.


View the most recent trade leads here.


Delaware companies: Please fill out our trade leads form so we can market your products or services!

WTC DELAWARE EVENTS

November 5, 2025

WTC Delaware Board Meeting


November 19, 2025

Site visits with Akwaba African Diaspora


November TBD

"Come for the Information and Stay for the Fun" Event


December TBD

Unveiling the 2025-26 Edition of International Delaware™


January 22, 2026

WTC Delaware Board Meeting


February 19, 2026

9th Annual Chocolate and Beer Tasting


March 31, 2026

Kickoff to US-Africa Business Summit, Wilmington, DE

PARTNER SPOTLIGHT

Mutombo Coffee is a premium coffee brand founded by NBA Hall of Famer Dikembe Mutombo, inspired by his roots in the Democratic Republic of the Congo. The company is committed to ethical sourcing, sustainability and investing in coffee-growing communities.


By working directly with farmers, Mutombo Coffee delivers quality, specialty-grade beans while promoting fair trade and social action.

TRUSTED PARTNERS
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PARTNER EVENTS

October 27 - November 18, 2025

Days of Eurasian-American Innovation Entrepreneurship Cooperation (RAVC), Philadelphia, PA; MAEBC/MARBC


November 3, 2025

Data-Driven Export Market Selection: A Smarter Way to Go Global, Webinar; Export Delaware


November 3-18, 2025

25th Annual Eurasian-American Innovation Technology Week (RANIT), Philadelphia, PA; MAEBC/MARBC


November 17-20, 2025

The International Trade Fair & Congress World Forum for Medicine, Düsseldorf, Germany


November 18-21, 2025

Formnext 2025, Frankfurt, Germany; U.S. Commercial Service


December 1-5, 2025

Southern Cone Energy Technologies Trade Mission, Chile, Argentina & Uruguay; International Trade Administration, U.S. Commercial Service & IMPACT

MEMBER BENEFIT SPOTLIGHT

Our company referral services connect you with trusted partners, clients and suppliers to help your business grow.


Whether expanding your network or seeking specialized support, we’re here to guide your next opportunity.

INTERNATIONAL JOB POSTS

See the latest 300 job opportunities posted on DevelopmentAid.

World Trade Center® Delaware is the state’s premier international business resource. We help companies, especially small, medium-sized and emerging enterprises, to grow their international business. We provide trade leads, training programs, job leads, networking, matchmaking, trade mission and reverse trade mission opportunities for Delaware companies. We serve all types of companies in various sectors including agriculture, environmental remediation, IT, medical equipment manufacturing, biopharmaceuticals, financial, legal and real estate services.  For more information visit us at www.wtcde.org.

World Trade Center Delaware

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New Castle, DE 19720

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