What the FMC’s Proposed Spain Trade Restrictions Could Mean for Shippers and Importers

The Federal Maritime Commission (FMC) has proposed new restrictions after Spain denied port access to certain U.S.-flagged vessels. The proposal would impose a $200,000 fee each time a Spanish-flagged vessel enters a U.S. port and restrict certain imports from Spain, including olive oil, sugar and confectionery, perfumery and cosmetics, articles of stone, and ceramics.

The proposed measures create separate risks: covered Spanish goods could face restrictions regardless of vessel flag, while Spanish-flagged vessels could be subject to the proposed fee even when they are not carrying covered Spanish goods. The measures are not yet in effect. The FMC has issued a Notice of Proposed Rulemaking, allowing the public to comment before the Commission determines whether to adopt the restrictions.

Companies with potential exposure may want to use this time to assess how the proposal could affect their operations. Shippers may consider reviewing contracts and carrier arrangements for provisions addressing government-imposed fees, surcharges and routing changes, while importers of Spanish goods may want to identify potentially covered products and review relevant supply and sales contracts. Companies with significant exposure may also consider participating in the FMC rulemaking process. Companies importing other goods from Spain may also want to monitor the rulemaking, as the proposal would allow the FMC to add additional HTS chapters if Spain takes retaliatory measures against U.S. carriers or shippers. 

For more details on the proposed restrictions and considerations for shippers and importers, we encourage you to read the legal alert.

Husch Blackwell’s Transportation & Logistics and International Trade teams are monitoring these developments and will provide updates as they arise.