Regulations of the People's Republic of China on International Ocean Shipping (2019 Revision)

Regulations of the People's Republic of China on International Ocean Shipping (2019 Revision) Regulations of the People's Republic of China on International Ocean Shipping (Promulgated by Order No. 335 of the State Council of the People's Republic of China on December 11, 2001; revised for the first time in accordance with the Decision of the State Council on Abolishing and Amending Some Administrative Regulations on July 8, 2013; revised for the second time in accordance with the Decision of the State Council on Amending Some Administrative Regulations on February 6, 2016; and amended in accordance with the Decision of the State Council to Amend Certain Administrative Regulations on March 2, 2019) Chapter 1 General Provisions Article 1 These Regulations have been enacted in order to normalize the activities of international ocean shipping, to protect fair competition, to maintain the order of the international ocean shipping market and to guarantee the lawful rights and interests of the parties to international ocean shipping. Article 2 These Regulations shall be applicable to the business operations of international ocean shipping inward and outward from the ports of the People's Republic of China and the auxiliary business operations related to international ocean shipping. The “auxiliary business operations related to international ocean shipping” as used in the preceding paragraph include international ship agencies, international ship management, port handling of international ocean shipping, the storage of goods related to international ocean shipping, container stations and stacking of international ocean shipping, and other operations. Article 3 Those engaged in the business operations of international ocean shipping and the auxiliary business operations related to international ocean shipping shall abide by the principle of good faith, and shall operate the businesses according to law with fair competition. Article 4 The department in charge of transportation under the State Council and the departments in charge of transportation under the relevant local people's governments shall, according to the provisions of these Regulations, supervise and administrate the business operations of international ocean shipping, and carry out the relevant supervision and administration of the auxiliary business operations related to international ocean shipping. Chapter 2 Operators of International Ocean Shipping and the Auxiliary Businesses Thereof Article 5 A party shall meet the following conditions to operate an international shipping business: 1) Obtaining the enterprise legal person status; 2) Having the ships accommodated to international ocean shipping operations, among which there must be Chinese ships; 3) Putting the ships into operation in accord with the technological standards of ocean shipping safety prescribed by the State; 4) Having bills of lading, passenger tickets or multimode transport documents; 5) Having senior managerial personnel with the practice qualification as prescribed by the department in charge of transportation under the State Council. Article 6 To operate the international shipping business, the party shall file an application with the department in charge of transportation under the State Council, and attach the relevant materials meeting the conditions as prescribed in Article 5 of these Regulations. The department in charge of transportation under the State Council shall finish the examination within 30 days from the day of accepting the application, and make the decision on whether to approve the application or not. Where approval is granted, the International Shipping License shall be issued to the applicant; where approval is not granted, the applicant shall be notified in written form with reasons explained. The department in charge of transportation under the State Council shall take into consideration the state policies on the development of the international ocean shipping industry and the competition on the international ocean shipping market when examining the application for international shipping operations. If a party applies for the operation of international liner shipping when applying for the operation of international shipping, it shall attach the relevant materials as prescribed in Article 12 of these Regulations to be examined and registered by the department in charge of transportation under the State Council. Article 7 Those operating the non-vessel shipping business shall make the registration of bill of lading with the department in charge of transportation under the State Council, and shall pay the security deposit. The “non-vessel shipping business” as used in the preceding paragraph refers to the international ocean shipping business operations of a non-vessel shipping operator to accept the cargo of the shipper as the carrier, take the freight charges from the shipper by issuing his own bills of lading or other transport documents, ship the international ocean goods through international shipping operators and bear the responsibilities of the carrier. To operate non-vessel shipping business within the territory of China, the party shall establish an enterprise with legal status within the territory of China according to law. Article 8 The non-vessel shipping operator shall attach the relevant materials proving the payment of security deposit in accordance with the provisions of these Regulations when filing the application for registration of bill of lading with the department in charge of transportation under the State Council. The sum of the security deposit as prescribed in the preceding paragraph is 800,000 Renminbi; and an additional security deposit of 200,000 Renminbi is required for each branch established. The security deposit shall be paid to a special account opened in a bank within the territory of China. The security deposit shall be used to pay the debts and fines incurred due to the failure of the non-vessel shipping operator to perform the obligations of carrier or the inappropriate performance of the obligations. The security deposit and the interests thereof shall belong to the non-vessel shipping operator. The special account shall be subject to the supervision of the department in charge of transportation under the State Council. The department in charge of transportation under the State Council shall finish the examination within 15 days of the day of receiving the application of the non-vessel shipping operator for the registration of bill of lading and the relevant materials of security deposit payment. Where the application materials are true and complete, the registration shall be made and the applicant shall be notified; where the application materials are untrue or incomplete, the registration shall not be made, and the applicant shall be notified in written form with reasons explained. The non-vessel shipping operators that have made the registration of bill of lading shall be made known by the department in charge of transportation under the State Council. Article 9 The international shipping operators and non-vessel shipping operators may not provide for the use of others the operation qualifications they obtained according to law. Article 10 Where an international shipping operator or non-vessel shipping operator no longer meets the conditions as prescribed in these Regulations after obtaining the corresponding operation qualification according to the provisions of these Regulations, the department in charge of transportation under the State Council shall cancel his operation qualification immediately. Chapter 3 International Ocean Shipping and the Auxiliary Business Operations Thereof Article 11 Where an international shipping operator operates the international liner shipping business into and out of Chinese ports, he shall obtain the operation qualification for international liner shipping according to the provisions of these Regulations. Without the operation qualification for international liner shipping a party may not engage in the business operations of international liner shipping, and may not release the schedule to the public or accept booking for shipping space. In case of operating the international liner shipping by the means of joint dispatch of ships, exchange of shipping space, or associated operation, etc., the provisions of the first paragraph of this Article shall be applicable. Article 12 To operate the international liner shipping business, a party shall file an application with the department in charge of transportation under the State Council with the following materials attached: 1) Name, place of registration, copy of business license, and main capital subscribers of the international shipping operator; 2) Names and the identification certificates of the main managerial personnel of the operator; 3) Information about the ships used in business operations; 4) Sea route, schedule, and ports of call along the way of the vessels; 5) Freight rate book; 6) Bills of lading, passenger tickets, or multimode transport documents. The department in charge of transportation under the State Council shall finish the examination within 30 days from the day of receiving the application for the operation of international liner shipping business. Where the application materials are true and complete, the registration shall be made and the applicant shall be notified; where the application materials are untrue or incomplete, the registration shall not be made, and the applicant shall be notified in written form with reasons explained. Article 13 The international shipping operator that has obtained the operation qualification for international liner shipping shall start sailing within 180 days from the d......