NOTICE ON INVITING COMMENTS ON THE IMPLEMENTING RULES FOR THE REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON INTERNATIONAL MARITIME TRANSPORTATION

 

(Notice of the Department of General Affairs

of the Ministry of Communications of the People’s Republic of China issued on June 21, 2002)

 

For the purpose of implementing the Regulations of the People’s Republic of China on International Maritime Transportation, the Implementing Rules for the Regulations of the People’s Republic of China on International Maritime Transportation (on comment) are drafted and available for comments. The comments are welcomed from operators in international maritime transportation and auxiliary business thereof including shipping service companies, non-vessel-operating common carriers, international shipping agency service operators as well as any organizations and persons who are interested in Chinese maritime legislation.

 

The Chinese and English versions of these Implementing Rules (on comment) are available for downloading from the official website of the Ministry of Communications: http://www.moc.gov.cn/. The comments can be either in Chinese or in English. Please send the comments in writing (by fax or by email) to the Department of Water Transport of the Ministry of Communications before July 15, 2002.

 

The address for the comments is as follows:

 

11 Jian Guo Men Nei Avenue

Department of Water Transport

Ministry of Communications

Beijing, 100736

P. R. China

 

The fax number is 86-10-65292648. The email address is shipping@moc.gov.cn.

 

IMPLEMENTING RULES FOR THE REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON INTERNATIONAL MARITIME TRANSPORTATION

(ON COMMENT)

 

CHAPTER ONE

GENERAL PROVISIONS

 

Article 1

These Implementing Rules are formulated in accordance with the Regulations of the People’s Republic of China on International Maritime Transportation.

 

Article 2

These Implementing Rules are applicable to the international maritime transportation business as well as the auxiliary business operations as specified in Regulations of the People’s Republic of China.

 

Article 3

The Ministry of Communications and the relevant communications departments of the local people’s government shall, under the principles of fair competition, effective governance and supervision and coordination and convenience administer the international maritime transportation business and the auxiliary business operations in accordance with these Implementing Rules.

 

CHAPTER TWO

OPERATORS OF INTERNATIONAL MARITIME TRANSPORTATION AND AUXILIARY BUSINESSES THEREOF

 

Article 4

To be engaged in international shipping services or to establish a company for international shipping services in the Chinese territory in accordance with the Regulations of the People’s Republic of China on International Maritime Transportation (hereinafter referred to as RIMT), the applicants shall submit the following documents to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the company is to be established for further submission to the Ministry of Communications for approval by the such communications department after its review:

 

(1) applications for the engagement of the international shipping services or for the establishment of a company for international shipping services; and

(2) the contract on the establishment of the joint venture;

(3) the company’s charter;

(4) the legal document certifying the registration of the company; or

(5) financial credibility documents for the main investors;

(6) other documents as, the case my be, as required by the Ministry of Communications.

 

The relevant communications departments in the people’s government in the province (municipality directly under the Central Government or autonomous region) shall, within 15 days from the receipt of the qualified documents from the applicants, provide its comments and convey the whole set of application to the Ministry of Communications. The Ministry of Communications shall, within 15 days from the receipt of the documents, make a decision of granting or not granting permission, and notify the applicant through the relevant communications department of the local people’s government.

 

In case that the permission is granted by the Ministry of Communications, the applicant shall, settle the registration procedure of the company at the company registration authority and settle the related procedures at the taxation authority, the designated banks for foreign currency transaction. The company shall also satisfy the conditions as specified in Article 5 of the RIMT.

 

In case the company satisfies the conditions as specified in Article 5, the applicant shall, in accordance with the procedures specified in paragraph 1 of this Article, submit the relevant documents certifying that all the conditions in Article 5 are satisfied to the Ministry of Communications. The company cannot operate until he obtains the Permit for Operation of International Shipping Services.

 

Article 5

To be engaged in international shipping agency services or to establish a shipping agency service company within the Chinese territory, the following documents shall be submitted to the communications department in the people’s government in the province (municipality directly under the Central Government or autonomous region) where the services are to carried out:

 

(1) application for the engagement of the international shipping agency services or establishment of a international shipping agency service company;

(2) the contract on the establishment of the joint venture;

(3) the company’s charter;

(4) the photocopy of the company’s business license; or

(5) financial credibility documents of the main investors;

(6) the agreement of establishing the joint venture or cooperative operation;

(7) the relevant documents certifying that the conditions specified in paragraph 2 of Article 9 of the RIMT are satisfied and the staff hold the qualification certificate for the operation issued by the Ministry of Communications.

(8) the related documents certifying that company has the ability to have the electronic data exchange with the ports and the customs authority;

(9) other documents required by the Ministry of Communications.

 

The relevant communications department shall, within 15 days from the receipt of the qualified documents from the applicants, provide its comments and convey the whole set of application documents to the Ministry of Communications.

 

The Ministry of Communications shall make public the materials on the experience of the senior executives for comments at the official website of the Ministry of Communications for 10 days. During the period for public comments, in case there is no disagreement from the public about the experience of such senior executives, the Ministry of Communications shall proceed with the qualification registration procedure and issue the certifying document with which the applicant shall settle the registration of the company at the company registration authority and other relevant procedures at the customs, the taxation and the foreign currency authorities. After the all the procedures have been completed, the applicant can obtain the Qualification Certificate for the Engagement of the International Shipping Agency Services from the Ministry of Communications.

 

Article 6

The international shipping agency companies and other investors are entitled to set up their branch or international shipping agency company in the inland cities other than the port cities in accordance with laws and regulations for the purpose of accepting the entrustment from the ship owners, the ship charterers or the ship operators to engage in part of the services listed in Article 29.

 

(1)  signing bill of lading or carriage contracts and accepting cargo space booking on behalf of the carrier;

(2)  undergoing customs formalities for containers and shipments;

(3)  canvassing cargoes, arranging shipments and attending to procedures for shipments ands transshipment of cargoes and containers;

(4)  collecting freight and settling payment on behalf of the principal;

(5)  other pertinent businesses.

 

In case of setting up branch or international shipping agency company in the inland cities, the following documents shall be submitted via the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) to the Ministry of Communications for the qualification registration:

 

(1)  applications for the setting up of the branch or the international shipping agency company;

(2)  company’s charter;

(3)  financial credibility document for the investors (not applicable to the cases where branches are to be set up);

(4)  the relevant documents certifying that the condition specified in paragraph 2 of Article 9 of the RIMT is satisfied.

 

Article 7

The following criteria shall be satisfied for the engagement in the business relating to storage and warehousing of international shipments within Chinese territory:

 

(1)  having the fixed place of business;

(2)  having the warehouse which meets the standards of safety and environment protection as provided by the State;

(3)  having at least two senior executives among all with no less than three years’ experience in the related business;

(4)  other criteria specified by the State laws and regulations.

 

Article 8

The following criteria shall be satisfied for the engagement in the business relating to international maritime container freight station and container yard services:

 

(1)  having the fixed place of business;

(2)  having the vehicles, handling equipment, storing yard, warehouse and the related facilities appropriate to the business scope for the check of the containers;

(3)  having at least two senior executives among all with no less than three years’ experience in the related business;

(4)  other criteria specified by the State laws and regulations.

 

Article 9

In case of engagement in international ship management business, businesses relating to storage and warehousing of international shipments and international maritime container freight station and container yard services by Chinese enterprises or establishment of enterprises for the engagement of the above-mentioned businesses, the following materials and documents shall be submitted to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region ) where the businesses are to be carried out:

 

(1)  application;

(2)  agreement (contract) on joint investment or cooperative operation;

(3)  charter of the company;

(4)  the registration document of the company; or

(5)  the financial credibility documents of the main investors.

 

In case that the materials and documents are complete and effective, the communications department of the local people’s government in the province (municipality directly under the Central Government or autonomous region) shall, within 15 days from the acceptance of the application, complete the registration procedure and issue the certifying document with which the applicant shall settle the registration of the company at the company registration authority and other relevant procedures at the customs, the taxation and the foreign currency authorities. The conditions specified in article 11 of the RIMT, Article 7 and 8 of these Implementing Rules shall be satisfied by the company.

 

In case that the applicant satisfies the conditions specified in article 11 of the RIMT, Article 7 and 8 of these Implementing Rules, the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) shall issue the Qualification Certificate for the Engagement of the International Maritime Transportation Auxiliary Services and such issuance shall be filed with the Ministry of Communications by the communications department. The applicant cannot operate until the qualification certificate has been obtained.

 

Article 10

The overseas international shipping service company and the overseas non-vessel-operating common carrier who engage in international container liner service at Chinese ports shall nominate a point of contact within Chinese territory. The point of contact is the point through which the communications department of the people’s government may have contact with the overseas international shipping service company and overseas non-vessel-operating common carrier. Such point of contact shall bear the responsibility of contact related to the administrative and legal procedures specified in the RIMT or these Implementing Rules.

 

The nominated point of contact shall have a fixed place of business within Chinese territory.

 

The company is deemed to have received the documents after the documents have been served to his nominated point of contact for a reasonable period of time.

 

While the overseas international shipping service company or non-vessel-operating common carrier applies for the qualification registration, he shall file with the Ministry of Communications of the name, address and means of contact of such point of contact as well as the copy of agreement between the company and the point of contact or the letter of entrustment by the company to the point of contact. In case of change of the point of contact or means of contact, such changes shall be filed to the Ministry of Communications 15 days in advance.

 

Article 11

The materials and documents specified in Article 17 of the RIMT shall be submitted for the application of the engagement of the international liner service at Chinese ports and registration for the relevant qualification. It is not allowed to engage in international liner service unless the international liner service qualification and Registration Certificate of the International Liner Service Qualification has been obtained.

 

The above-mentioned international liner service qualification shall mean that the operator has the qualification to engage in international cargo liner service or passenger liner service by means of soliciting cargo (passenger), accepting space booking, publishing ship schedule, issuing bill of lading, collecting freight with his owned or chartered vessel at the Chinese ports.

 

Article 12

An overseas international shipping service company cannot engage in international shipping service at Chinese ports unless he acquires the qualification of a non-vessel-operating common carrier in accordance with the provisions in Article 7 and Article 8 of the RIMT, in case that although the vessels operated by the such overseas international shipping service company do not call at Chinese ports, such company engage in international cargo liner service at Chinese ports by means of issuing bill of lading or the relevant transport document, soliciting cargo and collecting freight.

 

The above-mentioned provisions are especially applicable to the international shipping service company who solicit cargo at Chinese ports and transport the cargo to overseas ports for transshipment by means of space charter or feeder service.

 

Article 13

In case of applying for the qualification for engagement in non-vessel-operating common carrier’s business in China by a Chinese company, the application shall be submitted to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the company is registered for further submission to the Ministry of Communications. In case of applying for the qualification for engagement in non-vessel-operating common carrier’s business in China by a oversea non-vessel-operating common carrier, the application can be submitted for further submission via his nominated point of contact to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where his nominated point of contact is situated. The application materials include the following:

 

(1) application for the engagement in non-vessel-operating common carrier’s business;

(2) photocopy of the company registration document;

(3) original of the notary document certifying that the photocopy of the company registration document is authentic and effective;

(4) charter of the company; and

(5) the sample of the bill of lading; and

(6) having at least two senior executives among all with no less than three years’ experience in international maritime service;

(7) name, address and means of contact of the point of contact as well as copy of letter of entrustment ( applicable to overseas non-vessel-operating common carrier); and

(8) bank receipt for the deposit in the designated bank account.

 

The relevant communications department shall, within 15 days after the receipt of the above-mentioned documents submit the document to the Ministry of Communications. In case that the documents are complete and effective, the Qualification Registration Certificate for the Engagement in Non-Vessel-Operating Common Carrier’s Business shall be issued by the Ministry of Communications.

 

Article 14

In case of establishment of a company for engagement in non-vessel-operating common carrier’s business in Chinese territory, the application shall be submitted to the Ministry of Communications in accordance with the procedures specified in Article 13 of these Implementing Rules. The application materials shall include the following:

 

(1) application for the engagement of non-vessel-operating common carrier; and

(2) agreement (contract) on joint investment or cooperative operation;

(3) charter of the company;

(4) the financial credibility documents for the main investors;

(5) having at least two senior executives among all with no less than three years’ experience in the international maritime services.

 

The relevant communications departments of the people’s government shall, within 8 days after the receipt of the above-mentioned documents submit them to the Ministry of Communications. In case the documents are complete and authentic, the Ministry of Communications shall issue the certifying document with which the applicant shall settle the registration of the company at the company registration authority and other relevant procedures at the customs, the taxation and the foreign currency authorities. The applicant shall pay the deposit at the designated bank account by the Ministry of Communications and send the bank receipt of the bank deposit together with the sample of bill of lading and the photocopy of the company’s business license to the Ministry of Communications in accordance with the procedures provided in Article 13 of these Implementing Rules to obtain the Qualification Registration Certificate for the Engagement in Non-Vessel-Operating Common Carrier’s Business.

 

The above-mentioned procedures shall be followed in case of setting up branches by the non-vessel-operating common carrier.

 

Article 15

After an overseas non-vessel-operating common has obtained the qualification for the engagement in the non-vessel-operating common carrier’s business in China, in case that the Chinese-registered subsidiaries or joint ventures of such overseas non-vessel-operating common carrier do not use their own bills of lading, such subsidiaries or joint ventures can be registered for the qualification as such overseas non-vessel-operating common carrier’s branches in China.

 

Article 16

After the Chinese company has acquired the qualification for the engagement of the non-vessel-operating common carrier’s business, if his subsidiaries or the companies in which he has the majority shares do not use their own bills of lading, but only issue their mother company’s bill of lading, his subsidiaries or companies in which he has the majority shares can be registered as the branches of such a company for the qualification.

 

In case that his subsidiaries or such companies in which he has the majority shares use and issue their own bills of lading, the above-mentioned provisions do not apply.

 

Article 17

The company who has acquired the non-vessel-operating common carrier’s business qualification can accept the entrustment from other non-vessel-operating common carriers to issue the bill of lading on their behalf.

 

Article 18

In case a company register the qualification for non-vessel-operating common carrier’s business with at least two kinds of trade names, the applicant shall provide documents to prove that such trade names or bills of lading are owned or held by such company. If the documents are authentic and effective, the applicant can register his qualification with more than one trade names or bills of lading.

 

Article 19

The applicant for the engagement in the non-vessel-operating common carrier’s business shall pay a deposit in the non-vessel-operating common carrier business bank account which are opened by a commercial bank entrusted by the Ministry of Communications. The interest of the deposit shall be calculated on the basis of interest rate of current bank account published by the People’s Bank of China.

 

Article 20

After the applicant has registered his bill of lading, paid the deposit and acquired the qualification for engagement in non-vessel-operating common carrier’s business, the Ministry of Communications shall made know to the public the names as well as the samples of the bills of lading of such non-vessel–operating common carriers at the official website: http://www.moc.gov.cn/.

 

Article 21

In case of non-vessel-operating common carrier’s compensation arising from the non-performance or inappropriate performance of the carrier’s obligation by the legal authority or the arbitration organization, the legal authority shall handle such compensation in accordance with the relevant laws. In case of a penalty exercised by the communications department, the Ministry of Communications shall deduct the amount of the penalty from the deposit bank account.

 

In case the amount of deposit in the bank account is not in compliance with the amount specified in the RIMT, the deducted amount from the deposit of such non-vessel-operating common carrier shall be made in full within 20 days. In case of failure of making up, the Ministry of Communications shall deprive such non-vessel-operating common carrier of his qualification certificate.

 

Article 22

In case that the non-vessel-operating common carrier is deprived of the qualification by the Ministry of Communications in accordance with laws and regulations or the non-vessel-operating common carrier applies for the termination of business or the business is terminated for other reasons, the application can be submitted to the Ministry of Communications for the refund of the deposit. The Ministry of Communications shall make known to the public such application for 30 days on the official website: http://www.moc.gov.cn/.

 

In case of no right of compensation is lodged within the period of publication, the Ministry of Communications shall, within 5 days after the publication, inform the bank with whom the deposit bank account is opened to refund the applicant the deposit together with the interests therefrom.

 

Article 23

In case of setting up representative office by foreign operators of maritime transportation and auxiliary businesses thereof, the following documents shall be submitted to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the representative office is to be set up:

 

(1)  application to set up the representative office, in which the name of the applicant, the place of registration of such representative office, the term of service and the main scope of operation etc., shall be specified;

(2)  the photocopy of the company’s commercial registration certificate;

(3)  the original of the notary document issued by the notary office at the state (region) of the registration of the company certifying that the photocopy is authentic and effective;

(4)  the introduction on the company, including the year of establishment, the scope of the main business, the business achievement made in the previous few years, the number of employees, the overseas organizations structure etc.;

(5)  the name and nationality of the chief representative and his (her) resume etc.

 

The Ministry of Communications will review the above-mentioned documents. In case the documents are authentic and effective, the Approval Certificate for the Representative Office by Traders from Foreign Country (Region) will be issued by the Ministry of Communications.

 

The term of service by the representative office will be from one to three years.

 

In case of the prolongation of the term of service of the representative office and the change of chief representative, the related procedures shall be gone through for the approval by the Ministry of Communications in accordance with the procedures provided in the previous paragraph.

 

Article 24

In case the applicant for the international shipping agency service or non-vessel-operating common carrier’s business has one of the following circumstances, the Ministry of Communications will not issue the qualification certificate:

 

(1)  the investor who is a natural person has been convicted for criminal punishment for more than one year’s imprisonment;

(2)  the investor’s business permit or registration of the company originally invested by the applicant has been deprived for his violation of laws or the operation of the company has been required for termination;

(3)  the main investors was given a warning or exercised a penalty of more serious nature by the administrative authority in the past three consecutive years for his violation of the State laws or regulations;

(4)  the senior executives referred to in the application have the circumstance specified in paragraph 1, 2 and/or 3.

 

Article 25

The applicant for the engagement of the storage and warehousing of international shipments and international maritime container freight station and container yard services shall, against the production of the relevant qualification certificate issued by the relevant communications departments of the people’s government in the province (municipality directly under the Central Government or autonomous region), settle the registration procedures at the customs authority who has the jurisdiction before he can store the cargo and containers supervised by the customs.

 

Article 26

In case that the related documents or materials are submitted for the application to engage in the international maritime transportation and auxiliary businesses thereof as specified in the RIMT by foreign traders, when the communications department considers it necessary, notary document issued by the notary office or the law firm at the state of the registration of the company certifying that the documents and materials are authentic and effective shall be submitted.

 

Article 27

After the international shipping service companies, non-vessel-operating common carriers, international shipping agency companies, international ship management companies, companies for storage and warehousing of international shipments service, companies for international maritime container freight station and container yard service have established in accordance with laws and regulations or have acquired the qualification certificate, the following changes shall be filed with the authority who issued the permit or qualification certificate:

 

(1)  change of the company’s name;

(2)  change of place of business of the company;

(3)  change of the investor(s);

(4)  suspension or termination of operation;

(5)  merging or severance of the company.

 

In case of change of the company’s name, the permit or qualification certificate shall be withdrawn for new ones by the authority who issued the permit or qualification certificate. In case of termination of operation, the permit or qualification certificate shall be returned to the authority who issued the permit or qualification certificate.

 

CHAPTE THREE

INTERNATIONAL MARITIME TRANSPORTATION AND AUXILIARY BUSINESSES THEREOF BY  FOREIGN INVESTORS

 

Article 28

The approval shall be obtained from the Ministry of Communications and the competent foreign trade and economic cooperation authority in accordance with the provisions in this Chapter for the engagement in the business operations of international maritime transportation and auxiliary businesses thereof which are specified in the RIMT and these Implementing Rules by establishment of foreign-invested enterprises as provided in the RIMT.

 

Article 29

In case of establishment of foreign-invested enterprises for engagement in international shipping service businesses, or international shipping agency service business, or non-vessel-operating common carrier’s business, the application shall be submitted to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where such enterprise is to be established for further submission to the Ministry of Communications. The documents specified in Article 4, 5 or 14 of these Implementing Rules shall be submitted as well. In case the above-mentioned application and the documents are reviewed as qualified, the Ministry of Communications will issue the business approval document. The applicants shall, against the production of the business approval document and the document specified in Article 32 of these Implementing Rules, obtain the License for Foreign-Invested Enterprise from the Ministry of Foreign Trade and Economic Cooperation.

 

The applicant shall, after having obtained the approval from the Ministry of Communications and the Ministry of Foreign Trade and Economic Cooperation, against the production of the document issued by the Ministry of Communications and the License for Foreign-Invested Enterprise issued the Ministry of Foreign Trade and Economic Cooperation, settle the company registration procedure at the company registration authority, and other the relevant procedures at the customs authority, the taxation authority as well as the foreign currency authority.

 

After the foreign-invested enterprise has established in accordance with Chinese laws, the applicant shall, against the production of the company business license issued by the company registration authority, apply for the relevant permit or qualification certificate before he can start the operation.

 

Article 30

In case of establishment of foreign-invested enterprises for engagement in international ship management, or storage and warehousing of international shipments service, or international maritime container freight station and container yard service, the documents specified in Article 9 of these Implementing Rules shall be submitted to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the company is proposed to be established for further submission to the Ministry of Communications.

 

In case that the above-mentioned application and documents are reviewed as qualified, the Ministry of Communications shall issue the approval document to the applicant. The applicant shall, against the production of the approval document issued by the Ministry of Communications and the documents specified in Article 32 of these Implementing Rules, obtain the License for Foreign-Invested Enterprise from the department of foreign trade and economic cooperation of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the company is proposed to be established.

 

The Applicant shall, after having obtained the approval document issued by the Ministry of Communications and the License for Foreign-Invested Enterprise issued by the department of foreign trade and economic cooperation of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the enterprise is proposed to be established, settle the company registration procedure at the company registration authority, and other relevant procedures at the customs authority, the taxation authority and foreign currency authority.

 

After establishment in accordance with Chinese laws, foreign-invested enterprises shall, against production of the business license issued by the company registration authority and the relevant certifying documents provided in Article 11 of the RIMT or Article 7 and 8 of these Implementing Rules, obtain the relevant qualification certificate at the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) before he can operate.

 

Article 31

In case of applying for the enlargement of business scope to include operations of international maritime transportation and auxiliary business thereof by the foreign-invested enterprises, the qualifications shall be obtained from the Ministry of Communications or the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) for engagement in international shipping services, non-vessel-operating common carrier’s business, international shipping agency service, international ship management, storage and warehousing of international shipments service, or international maritime container freight station and container yard service. After the qualifications have been obtained, the change of business scope procedure shall be settled at the authority who issued the License for Foreign-Invested Enterprise in accordance with the provisions in the relevant State laws and regulations.

 

Article 32

In the application for the License for Foreign-Invested Enterprise from the department of foreign trade and economic cooperation authority in accordance with the provisions of this Chapter, the following document shall be submitted:

 

(1)   application for the establishment of the foreign-invested enterprise;

(2)   contract or agreement on joint investment or cooperation;

(3)   charter of the company;

(4)   the financial credibility documents for the main investors.

 

CHAPTER FOUR

INTERNATIONAL MARITIME TRANSPORTATION AND THE AUXILIARY BUSINESSES THEREOF

 

Article 33

In case of new international liner services, liner services under suspension, or any increase or decrease of service frequency at Chinese ports, changes to ports of call in China by international shipping service company who has acquired the liner service qualification certificate, filing of the above-mentioned issues shall be made to the Ministry of Communications in accordance with the provisions of the RIMT.

 

Article 34

In case of purchasing vessels from abroad by a international shipping service company registered in China, the application for registration shall be made to the Ministry of Communications via the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the company is registered. No vessels can be purchased from abroad before the registration document can be obtained from the Ministry of Communications.

 

Article 35

In case of increase of shipping capacity by a international shipping service company registered in China, the name, nationality and tonnage of the vessel to be added shall be filed with the Ministry of Communications via the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the company is registered.

 

The Ministry of Communications shall, after the receipt of the application for filing, issue the document certifying the filing. The international shipping service company shall, against the production of the document certifying the filing, settle the relevant procedures at the customs authority and the maritime safety supervision authority before he can have the vessel in operation.

 

Article 36

The business of a non-vessel-operating common carrier shall include the following:

 

(1)  acceptance of shipments as a carrier or conclusion of international shipment contracts; and

(2)  issuance of the bill of lading or the corresponding document of transportation; and

(3)  booking of space or ship cargo to the maritime carrier or the inland carrier; and

(4)  collection o freight as well as other kinds of charges on the basis of the service contract; and

(5)  payment of charges for the port to port service and the multimodal transport charges; and

(6)  handling of warehousing and vessel agency; and

(7)  leasing of containers, stuffing and destuffing; and

(8)  other activities related to non-vessel-operating common carrier’s business.

 

In case that the non-vessel-operating common carrier needs to provide for the shipper or consignee the international container consolidation and distribution service for which he needs to engage in inland transport, cargo warehousing, international freight station and container yard services, he shall apply to the relevant authorities for the qualification in case that such services need the approval from the authorities as specified in the relevant laws and regulations.

 

Article 37

Operators for maritime storage and warehousing for international shipments service can engage in the following kinds of services upon the entrustment from the shipping service companies, non-vessel-operating common carriers, manufacturers or cargo owners:

 

(1)  to store and maintain the cargo;

(2)  to maintain the stored cargo;

(3)  to sort, separate, pack and label the cargo;

(4)  to distribute and send cargo;

(5)  other related services.

 

Article 38

Operators for international maritime container freight station and container yard services can engage in the following kinds of services upon the entrustment from the shipping service companies, non-vessel-operating common carriers:

 

(1)  to store, maintain and transship containers;

(2)  to clean, repair and check containers;

(3)  to store, consolidate and distribute cargo in the containers;

(4)  other related services.

 

Article 39

In case that an overseas non-vessel-operating common carrier has no branch within the Chinese territory, he shall entrust an operator in China who has the non-vessel-operating common carrier’s business qualification to issue the bill of lading on his behalf. In case a Chinese non-vessel-operating common carrier do his non-vessel-operating common carrier’s business at places where he has no branches by means of entrusting an agent to issue the bill of lading on his behalf, such agent shall have the non-vessel-operating common carrier’s qualification.

 

An operator who has no non-vessel-operating common carrier’s qualification shall not accept other qualified non-vessel-operating common carrier’s entrustment to issue the bill of lading on behalf of such qualified non-vessel-operating common carrier.

 

Article 40

In case that an international liner service operator, a non-vessel-operating common carrier, in accordance with the provisions in the RIMT or these Implementing Rules, entrust an international shipping agency service company, a non-vessel-operating common carrier to issue the bill of lading or to collect freight on his behalf, the name, address, place of registration and the means of contact for such entrusted agent shall be made known to public on the website or by other means of media.

 

The name of the website or the media where the international liner service company or non-vessel-operating common carrier publish the name list of his agents shall be filed with the Ministry of Communications.

 

Article 41

In case that an international container liner service company concludes a service contract with a non-vessel-operating common carrier or a cargo owner, such service contract shall be in written form. The contract serial number shall be shown in the bill of lading or other relevant documents.

 

Article 42

In case that an international container liner service operator needs to conclude with the non-vessel-operating common carrier a service contract or accept his shipments, the duplicate of the Qualification Certificate for the Engagement in the Non-Vessel-Operating Common Carrier’s Business shall be required to be produced.

 

Article 43

When the international container liner service operator accept the space booking or shipments from an international freight forwarder, the cargo owner’s name shall be shown on the bill of lading or the related document under the item of “shipper”. In case that the international freight forwarder’s name is shown as the shipper, it shall be confirmed that such freight forwarder has obtained the Qualification Certificate for the Engagement in the Non-vessel-Operating Common Carrier’s Business in accordance with the provisions in the RIMT.

 

Article 44

In case a non-vessel-operating common carrier is at the same time an international freight forwarder, such operator can only has one of the two kinds of status for each shipment he made to the international shipping service company.

 

Article 45

In case that the RIMT-listed agreements which are reached among the international shipping service companies in the international liner service involve arrangement related to Chinese ports, such agreements shall be filed with the Ministry of Communications both in Chinese and English versions.

 

(1)  kinds of agreements made by the liner conference. They shall be filed by the conference.

When the conference files the agreements, the name lists of the conference members shall be provided.

(2)  kinds of agreements concluded between non-conference members or conference members with non-conference members. They shall be filed separately by the international shipping service operators who took part in the agreements.

 

Article 46

In case of soliciting cargo by the international shipping service operators who are engaged in international liner service at ports or in regions where there no branches by such international shipping service operators, the services as issuing of bill of lading, the collection of freight and the signing of service contracts on behalf of such international shipping service operators shall be entrusted to operators who have the qualification to engage in international shipping agency service.

 

Article 47

In case there is an acquisition or merging between Chinese international shipping service operators or between Chinese international shipping operators and foreign international shipping operators, the agreement of acquisition or merging shall be submitted to the Ministry of Communications for review by the acquiring or merging party.

 

Article 48

The operators of international maritime auxiliary services as international shipping agency, international ship management, storage and warehousing for maritime shipments and international maritime container freight station and container yard services shall not have the following conducts:

 

(1)   providing service at charges other than normal and reasonable ones, thereby prejudicing fair competition and the violation, by the international shipping agency service companies, of the relevant State policies and regulations on charges;

(2)   offering secret rebates to customers, not being reflected in the bookkeeping, for the purpose of soliciting cargoes;

(3)   arbitrarily taking advantage of its dominant position to restrict the other party of the transaction to choose the maritime auxiliary service providers freely, or to attract the other party of transaction by means of the monopoly position in the industry for the purpose to exclude other competitors;

(4)   other unfair competition activities.

 

CHAPTER FIVE

INVESTIGATIONS AND SETTLEMENT

 

Article 49

When the interested parties, in accordance with provisions in the RIMT, raise his request to the Ministry of Communications to have the investigation, such request shall be made in written form and the reasons for such request as well as the basic facts of the case to be investigated shall be provided.

 

The Ministry of Communications shall make a decision to launch the investigation or not to launch after the necessary appraisal about the request to investigate by the interested parties.

 

(1)  In case the Ministry of Communications believes that the request does not have enough reasons or the evidence is not enough, he shall decide not to investigate and inform the applicant of such decision. The interested parties may add reasons for investigation or factual evidence before he can raise the request again.

(2)  In case the Ministry of Communications decides to investigate, the reasons for investigation and the period of investigation shall be made known to the party to be investigated and made known to public by means of notice as well.

 

Article 50

Before the Ministry of Communications decide to launch the investigation at its own discretion, he shall listen to the comments from the industry and give though appraisal. After he decided to have the investigation, the reasons of investigation, the period of investigation shall be made known to the party to be investigated and made known to public by means of notice.

 

Article 51

When the investigatory authority forms the investigation group, the expert from the enterprise who has the competition with the party to be investigated shall not be invited.

 

The formation of the investigation group shall be informed to the party to be investigated by the investigatory authority. The investigatory authority shall give full consideration to the request for evasion of the party to be investigated. In case the request is reasonable, the formation of the investigation group shall be adjusted accordingly.

 

Article 52

While the party to be investigated is under investigation, he may tell the investigation group the data, materials and documents which he needs to keep confidential. When it is necessary, such request shall be recorded in written form for future review.

 

The members of the investigation group shall not disclose the items to be kept confidential as requested by the party to be investigated to others or organizations other than the investigatory authority. The investigatory authority shall not disclose information to be kept confidential to non-governmental organizations.

 

In case that the party to be investigated finds that the member(s) of the investigation group disclose(s) the confidential information, he has the right to complain to the investigatory authority or seek legal protection.

 

Article 53

Investigation includes investigation on basic facts and investigation on the impairment to competition.

 

Article 54

The following elements shall be taken into consideration by the investigatory authority to decide the standard of charges other than normal and reasonable ones:

 

(1)  the freight rates level of the main shipping companies who have the similar scale of business as the party to be investigated at the same period of time;

(2)  the reason of the freight rate level determined by the party to be investigated, including the control of costs, the level of management and the ability to make profit;

(3)  whether there is a focus on certain competitor for the purpose of driving the competitor out of the business.

 

Article 55

The following elements shall be considered by the investigatory authority to decide the case of prejudicing fair competition:

 

(1)  to constitute obstacle to the free choice of carrier by the shippers or the consignors, or to reduce the variety or flexibility of choice;

(2)  to affect the normal shipment of cargo;

(3)  to solicit cargo by offering secret rebate not being reflected by the book keeping, which seriously distorts the market competition rules.

 

Article 56

Before the investigatoy authority makes a conclusion on the investigation, a meeting for consulting the experts shall be held to evaluate the degree of impairment to fair market competition.

 

The experts invited in the meeting shall not be invited from the company which has the competition with the party to be investigated.

 

Article 57

After investigation is completed, the investigatory authority shall make a conclusion on the investigation and make such conclusion known to the public by notice:

 

(1)  if the basic facts for the launching of the investigation are not clear or do not exist after the investigation, the investigatory authority shall terminate the investigation;

(2)  if the basic facts exist but do not constitute impairment to fair competition in the market or the impairment is weak, the investigatory authority shall not take any prohibitive or restrictive action towards the party to be investigated;

(3)  if the basic facts are clear and constitute serious impairment to fair competition in the market, the investigatory authority shall take prohibitive or restrictive action towards the party to be investigated

 

Article 58

The Ministry of Communications or its authorized communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) shall, at the request of the interested parties, conduct investigation on the cases listed in Article 48.

 

In case there is violation of paragraph 3 and 4 of Article 48 which constitute impairment to the other transaction party or competitor in the industry, the relevant communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) may take the actions to decrease the shares of the shareholder who is the interesting party, or to take prohibitive or restrictive actions as the suspension of the business scope of such party within certain period of time.

 

CHAPTER SIX

SPECIAL PROVISIONS RELATING TO REPORT OF INFORMATION

 

Article 59

Chinese and overseas shipping companies who engage in international container liner service at Chinese ports shall, in accordance with the provisions in these Implementing Rules, fill out the Form on Basic Information of International Shipping Service Company, the Form on Outward Volume of Container Transportation of International Shipping Service Company and Form on Inward Volume of Container Transportation of International Shipping Service Company the truthfully. The filled out above-mentioned forms shall be sent to the Ministry of Communications before March 31st every year.

 

In case that an overseas shipping company has established his wholly-owned shipping company within the Chinese territory, such wholly-owned shipping company can report and send the form on behalf of the overseas company to the Ministry of Communications. In case there is no wholly-owned shipping company established by the overseas shipping company, he shall entrust the point of contact within the Chinese territory to report the information on his behalf.

 

Article 60

International shipping services companies, international shipping agency companies as well as the port stevedoring companies who engage in international container handling and are registered within Chinese territory shall, in accordance with the provisions of these Implementing Rules, fill out the Form on Basic Information of International Shipping Service Company, the Form on Information of International shipping Agency Industry, or the Form on Information of International Container Throughput at Ports truthfully. The filled out above-mentioned forms shall be sent to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the company is registered before March 15th every year.

 

The relevant communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) shall send the above-mentioned forms as well as the sorted information to the Ministry of Communications before March 31st of the same year.

 

Article 61

The forms shall be made in written form as well as in discs. The Ministry of Communications shall nominated or entrust an organization to receive, save, sort and analysis the information in the forms.

 

The method of sending the forms and the organization responsible for the receiving of the forms shall be made known to the public on the official website by the Ministry of Communications: http://www.moc.gov.cn/.

 

CHAPTER SEVEN

LEGAL LIABILITIES

 

Article 62

In case of violation of these Implementing Rules for failure to file the point of contact or the change of the point of contact, the Ministry of Communications shall exercise a penalty for more than 10 thousand but no more than 30 thousand yuan.

 

Article 63

In case of violation of these Implementing Rules by international shipping service companies or non-vessel-operating common carriers for failure to made known to public the name list of their agents, the Ministry of Communications shall exercise a penalty for more than 10 thousand but no more than 30 thousand yuan.

 

Article 64

A warning shall be given to the international shipping service operator by the Ministry of Communications or its authorized communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) and a penalty of more than 20 thousand but no more than 100 thousand yuan shall be exercised for each service contract made in case the international shipping service operators conclude a service contract with a non-vessel-operating common carrier who fails to register his bill of lading and pay the deposit.

 

Article 65

In case of engagement in the non-vessel-operating common carrier without registering his bill of lading and paying the deposit and when the penalty is exercised in accordance with Article 43 of the RIMT, the illegal income shall be calculated on the basis of the numbers of the service contracts. A violation shall be counted for each conclusion of service contract or each issuance of the bill of lading.

 

Article 66

If the service contracts concluded by the international shipping service companies who engage in international container liner service with non-vessel-operating common carriers are not in written form and the serial number of the service contracts are not shown on the bill of lading or the related documents, the Ministry of Communications shall ask for the rectification and a penalty of more than 10 thousand but no more than 30 thousand yuan shall be exercised.

 

Article 67

In case a non-vessel-operating common carrier accept the entrustment to provide the agency service as issuing the bill of lading of a non-vessel-operating common carrier who fails to register his bill of lading and pay the deposit, the Ministry of Communications shall ask for the rectification and a penalty of more than 10 thousand but no more than 30 thousand yuan shall be exercised.

 

Article 68

If the non–vessel-operating common carrier entrust an operator who does not have the non-vessel-operating common carrier’s qualification to issue the bill of lading or the related documents on his behalf, the Ministry of Communications shall ask for the rectification and exercise a penalty of more than 10 thousand but no more than 30 thousand yuan.

 

Article 69

In case of failure to file the agreements with the Ministry of Communications on time, a penalty will be exercised on each of the international shipping service operators who conclude the agreements in accordance with Article 48 of the RIMT.

 

Article 70

If international shipping service operators solicit cargo at ports or regions where they have no branches by means of entrusting operators other than international shipping agency companies to issue the bill of lading, settle the payment of freight, conclude service contracts etc., on their behalf, the Ministry of Communications or its authorized communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) shall ask for the rectification and a penalty of more than 10 thousand but no more than 30 thousand yuan shall be exercised.

 

Article 71

If there are violations against Article 48 of these Implementing Rules, the relevant communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) shall ask for the rectification and exercise a penalty of more than 10 thousand but no more than 30 thousand yuan.

 

Article 72

In case the member of investigation group violates the regulations and discloses the confidential information of the party to be investigated, the executive penalty shall be exercised. In case the consequence is severe and against the criminal law, the criminal punishment shall be exercised.

 

Article 73

In case of failure to report the information and send the forms timely as specified by these Implementing Rules, or untruthfulness of the information reported, the Ministry of Communications or the relevant communications department of people’s government in the province (municipality directly under the Central Government or autonomous region) shall ask for the rectification and give a warning or exercise a penalty of more than 10 thousand but no more than 20 thousand yuan.

 

CHAPTER EIGHT

SUPPLEMENTARY PROVISIONS

 

Article 74

The scope of application of certain parts of the RIMT shall mean the following:

 

(1)  Chapter Two shall be applicable to the international shipping service companies, international shipping agency companies and international ship management companies registered within Chinese territory as well as the engagement of non-vessel-operating common carrier’s business;

(2)  Article 23 of Chapter Three shall be applicable to the international shipping service companies registered within Chinese territory and other related companies;

(3)  Article 25 of Chapter Three shall be applicable to the international shipping service companies, international shipping agency companies and non-vessel-operating common carriers when they are registered in China.

 

Article 75

The engagement in the maritime passenger and cargo transportation across Taiwan Strait between Chinese mainland and Taiwan region and the engagement in the maritime transportation across Taiwan Strait between Chinese mainland and Taiwan region via a third place shall be approved by the Ministry of Communications in accordance with the State laws and regulations.

 

Article 76

In case of engagement in maritime passenger and cargo transportation between ports open to foreign trade in Chinese mainland in the province (municipality directly under the Central Government or autonomous region) where the company is registered and Hong Kong Special Administrative Region, or Macao Special Administrative Region by means of using Chinese flagged vessels by a international shipping service company registered in Chinese mainland who have not acquired the Permit for Operation of International Shipping Services, application shall be submitted to the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the service is to be carried out and the approval needs to be obtained from such communications department.

 

In case of engagement in maritime passenger and cargo transportation between ports open to foreign trade in more than two different administrative regions (provinces, municipalities, autonomous regions) of Chinese mainland and Hong Kong Special Administrative Region, or Macao Special Administrative Region by an international shipping service company registered in Chinese mainland who have not acquired the Permit for Operation of International Shipping Services, application shall be submitted to the Ministry of Communications for approval via the communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) where the company is registered.

 

In the above-mentioned applications, the following items shall be specified and the relevant documents shall be attached:

(1)      name of the company and the place of registration of the company;

(2)      name(s) of the vessel(s), the nationality and the tonnage of the vessel(s);

(3)      seaworthiness certificates of the vessel(s);

(4)      names of ports of call;

(5)      term of operation;

(6)      name of the shipping agency companies.

 

Article 77

In case of the following circumstances, for the engagement in liner or tramp passenger and cargo transportation service between Chinese mainland and Hong Kong Special Administrative Region or Macao Special Administrative Region, the operators shall, by themselves or by entrustment of agencies submit the application for approval to the Ministry of Communications:

 

(1)    usage of foreign flagged vessel(s) by international shipping service operators registered in Chinese mainland;

(2)    usage of foreign flagged vessel(s) by internationals shipping service operators registered in Hong Kong or Macao Special Administrative Region;

(3)    operation by foreign international shipping service operators.

 

The relevant provisions on liner service in the RIMT and these Implementing Rules shall be followed for the operation of liner service.

 

For the above-mentioned issue, the following items shall be specified and the relevant documents shall be attached:

 

(1)   name of the shipping service operator and the place of registration of such operator;

(2)   name, nationality and tonnage of vessel(s);

(3)   vessel(s) nationality certificates;

(4)   names of ports of call;

(5)   term of operation;

(6)   name of the shipping agency company.

 

Article 78

The shipping service along the international rivers, boundary rivers as well as the short sea international shipping service serving the frontier trade shall be administered by the relevant communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) in accordance with the applicable rules made by such communications department which have been approved by the Ministry of Communications.

 

Article 79

The relevant communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region) shall carry out an annual check over the international shipping service companies, non-vessel-operating common carriers, international shipping agency companies, international ship management companies, operators in storage and warehousing of international maritime shipments business, operators in international maritime container freight station and container yards business, foreign-trader-established representative offices registered in those provinces, municipalities or autonomous regions. The main content for annual check are as follows:

 

(1)  whether the qualification specified in the RIMT and these Implementing Rules is maintained by the operators;

(2)  whether there is any unlawful acts or violation of the RIMT and these Implementing Rules;

(3)  the change of the items related to the qualification at the time of the registration;

(4)  the performance of the obligations specified by the RIMT and these Implementing Rules.

 

In case of failure to maintain the qualification at the time of the registration of the company, the qualification shall be withdrawn by the authority who issue the permits or certificates in accordance with the provisions of the RIMT.

 

Article 80

The communications departments in Dalian, Qingdao, Xiamen, Ningbo and Shenzhen can accept for further submission the applications related to the permit, registration and filing as provided by these Implementing Rules from the their respective cities in case it is provided that the applications can be accepted for further submission by the relevant communications department of the people’s government in the province (municipality directly under the Central Government or autonomous region).

 

Article 81

The rules related to freight filing and the rules governing the qualification of the persons in the international maritime transportation and the auxiliary services thereof shall be formulated by the Ministry of Communications.

 

Article 82

The filed information, the format of the documents to be filed, the point of contact filed and the means of contact thereof as provided in the RIMT and these Implementing Rules can be looked up by the filers at the website of the Ministry of Communications: http://www.moc.gov.cn/.

 

Article 83

These Implementing Rules shall come into effect on    , 2002. The Management Method on International Shipping Service issued on April 11th, 1985, the Regulations Governing International Shipping Agency Service issued on March 2nd, 1990, the Rules on International Liner Service issued on June 20th, 1990, the Implementing Rules on International Container Transportation at Sea of the People’s Republic of China issued on July 1st, 1992, the Rules on Administration on Representative Offices established by Foreign Water Transport Enterprise issued on October 16th, 1997 by the Ministry Of Communications shall at the same time be null and void and of no effect.

 

  1. Form on Outward Volume of Container Transportation of International Shipping Service Company
  2. Form on Inward Volume of Container Transportation of International Shipping Service Company
  3. Form on Basic Information of International Shipping Service Company
  4. Form on Information of International Shipping Agency Industry