Regulation on the Administration of Domestic Water Transport (2017 Revision)

Regulation on the Administration of Domestic Water Transport (2017 Revision) Regulation on the Administration of Domestic Water Transport (Promulgated by the Order No. 625 of the State Council of the People's Republic of China on November 13, 2012; and revised for the first time in accordance with the Decision of the State Council on Amending Some Administrative Regulations on February 6, 2016; and revised for the second time in accordance with the Decision of the State Council to Amend and Repeal Certain Administrative Regulations on March 1, 2017) Chapter I General Provisions Article 1 This Regulation is formulated for purposes of regulating the operation of domestic water transport, maintaining the market order of domestic water transport, guaranteeing the safety of domestic water transport, and promoting the sound development of domestic water transport cause. Article 2 The operation of domestic water transport and ancillary business shall be subject to this Regulation. The term “domestic water transport” (hereinafter referred to as “water transport”) as mentioned in this Regulation refers to the commercial transport of passengers and cargos in navigable waters, where the departure port, the calling port, and the destination port are all within the jurisdiction of the People's Republic of China. The term “ancillary water transport business” as mentioned in this Regulation refers to the business operations that are directly provided for water transport, such as vessel management, vessel agency, agency for water transport of passengers, and agency for water transport of cargos. Article 3 The state shall encourage and protect fair competition at the water transport market and prohibit monopoly and unfair competition. By adopting such measures as economic and technical policies, the state shall support and encourage water transport operators to realize scale and intensive business operations and promote the structural adjustment of the water transport industry; and support and encourage water transport operators to adopt advanced and applicable water transport facilities and technologies to guarantee transport safety, promote energy conservation, and reduce pollutant discharge. The state shall protect the lawful rights and interests of water transport operators, passengers, and cargo owners. Article 4 The transport administrative department of the State Council shall be in charge of the national water transport management. The transport administrative department under the local people's government at or above the county level shall be in charge of the water transport management within their respective jurisdiction. The department or institution responsible for water transport management under the local people's government at or above the county level (hereinafter referred to as “department responsible for water transport management”) shall undertake the water transport management as set forth in this Regulation. Article 5 To engage in water transport and ancillary business, an operator shall observe laws and regulations and provide services in good faith. The transport administrative department of the State Council and the department responsible for water transport management shall conduct supervision and administration on the water transport market according to law, impose penalties against any illegal water transport operation and ancillary business, establish management rules for operator's operations in good faith, and publicly announce the supervision and inspection circumstances in a timely manner. Chapter II Water Transport Operators Article 6 To apply for engaging in water transport business, besides the circumstances as prescribed in Article 7 of this Regulation, an applicant shall satisfy the following conditions: (1) obtaining the legal person status as an enterprise; (2) has vessels that satisfy the conditions as prescribed in Article 13 of this Regulation, and the transport capacity of its own vessels conforms to the provisions of the transport administrative department of the State Council; (3) has specific business scope. Where the applicant applies for water transport business of passenger liners, it shall have feasible route operation plan; (4) has the management personnel of maritime and mechanical affairs who are consistent with the applied business scope and the transport capacity of vessels; (5) the percentage of senior crew who directly enter into labor contracts with it in the total crew complies with the provisions of the transport administrative department of the State Council; (6) has sound safety management rules; and (7) other conditions that are prescribed in laws and administrative regulations. Article 7 An individual may apply for engaging in general inland-water transport business of cargos. An individual who applies for engaging in general inland-water transport business of cargos shall comply with Article 13 of this Regulation and the tonnage of his or her vessel may not exceed that of a self-possessed vessel as prescribed by the transport administrative department of the State Council, and shall satisfy the conditions as prescribed in Items 6 and 7 of Article 6 of this Regulation. Article 8 The operation of water transport business shall comply with the provisions of the transport administrative department of the State Council and upon the approval of the transport administrative departments of the State Council or the department responsible for water transport management under the local people's government at or above the districted city level. To apply for engaging in water transport business, an applicant shall submit the application form and the relevant materials proving that it satisfies the conditions as set forth in Article 6 or 7 of this Regulation. The department responsible for examining and approving the application shall, within 30 workdays of accepting the application, review the application and decide on whether to approve it or not. Where the application is approved, the department shall issue a business license of water transport and an operation certificate for the vessel the applicant puts into operation; and where the application is not approved, the department shall notify the applicant in writing and state reasons. Article 9 The transport administrative departments at various levels shall conduct well the statistics, investigation, and analysis at the water transport market, and disclose the supply and demand of transport capacity at the water transport market to the public on a regular basis. Article 10 In order to guarantee water transport safety and maintain fair competition order at the water transport market, the transport administrative department of the State Council may, in light of the circumstances on the monitoring of the water transport market, decide to suspend new licenses of transport capacity in specific routes and water areas for the transport of passenger liners and bulk liquid hazardous cargos. The adoption of measures for adjusting transport capacities as prescribed in the preceding paragraph shall follow the principle of openness, fairness, and impartiality. The measures shall be publicly announced 60 days before they start to be implemented, and matters including reasons for adopting such measures, and the scope and time limit of the adopted measures shall be stated. Article 11 No foreign enterprise, other economic organization, or individual may engage in water transport business, or engage in water transport business in a disguised form such as leasing a Chinese vessel or shipping space. Any enterprise, other economic organization or individual in the Hong Kong Special Administrative Region, Macau Special Administrative Region, and Taiwan Region shall be governed by the provisions of the......