CHAPTER I GENERAL PROVISIONS
Article 1
These Regulations are formulated for the purpose of regulating the international shipping service, protecting the fair competition, maintaining the international shipping market order and protecting the legitimate rights and interests of the relevant parties involved in the international shipping service.
Article 2
These Regulations are applicable to the international shipping activities for carriage of goods to and from the ports of the People’s Republic of China as well as the auxiliary business activities relating thereto.
The auxiliary business activities relating to the international shipping service as referred to in the preceding paragraph includes the business activities relating to the international shipping agency service, international ship management, loading and unloading, storage and warehousing for international shipments and international seaborne container freight station and container yard services, etc.
Article 3
Operators engaged in the international shipping service as well as the auxiliary business activities relating thereto shall abide by the principle of good credit and faithfulness, and conduct lawful operation under fair competition.
Article 4
The competent authorities in charge of transport and communications under the State Council and the relevant transport departments under the local people’s governments shall, in accordance with the provisions of these Regulations, exercise supervision and administration over the international shipping service as well as the auxiliary business activities relating thereto.
Article 5
Applicants for engagement in the international shipping service shall meet the following requirements:
(1) owing vessels capable of employment in the international shipping service, among which there must be Chinese flag vessels;
(2) vessels under employment to satisfy the technical standards for maritime traffic safety as specified by the State;
(3) having own bill of lading, passage ticket or multimodal transport documents; and
(4) having senior business management staff with the qualifications as specified by the competent authorities in charge of transport and communications under the State Council.
Article 6
Applicants for the international shipping service shall submit an application and the relevant documents in conformity with the requirements contained in Article 5 of these Regulations to the competent authorities in charge of transport and communications under the State Council. The competent authorities in charge of transport and communications under the State Council shall, within 30 days after receipt of the application and related documents, complete verification thereof, and shall, when permit is granted, issue the Permits for International Shipping Service Operation to the applicants, or when permit is refused, advise the applicants in written form of the reason for refusal.
The competent authorities in charge of transport and communications under the State Council shall, upon verification of the application for the international shipping service, give due regards to the State policy for development of the international shipping industry and to the practical conditions of competition in the international shipping market.
Applicants for the international shipping service and for the international liner service as well shall, in addition to the application, submit concurrently the relevant documents as specified in Article 17 of these Regulations to the competent authorities in charge of transport and communications under the State Council for exclusive evaluation and registration.
Article 7
Applicants for non-vessel-operating service shall register the bill of lading with the competent authorities in charge of transport and communications under the State Council and necessary deposit shall be made therewith.
The non-vessel-operating service as referred to in the preceding paragraph means that the non-vessel-operating common carrier accepts shipments from the shippers, issues its own bills of lading or other shipping documents, procures through the international shipping operator the carriage of goods by sea against payment of freight by the shippers, and undertakes the international shipping service under the responsibility as the carrier.
Carriers for non-vessel-operating service within the Chinese territory shall establish the enterprise corporation within the Chinese territory.
Article 8
Carriers for non-vessel-operating service shall, upon submission of the application for bill of lading registration to the competent authorities in charge of transport and communications under the State Council, submit concurrently the relevant documents certifying that the required deposit has been made in accordance with the provisions of these Regulations.
The deposit as referred to in the preceding paragraph shall be made with a sum of RMB800,000 yuan and an additional sum of RMB200,000 yuan is required for each subsequent branch. The deposit shall be made to the designated bank accounts at the banks established in the Chinese territory.
The deposit shall be made as the liquidation for payment of debts or fines incurred for non-performance or improper performance of responsibilities by the non-vessel-operating common carriers. The deposit and the interests accrued therefrom shall belong to the non-vessel-operating common carriers and the designated account shall be subject to the supervision by the competent authorities in charge of transport and communications under the State Council.
The competent authorities in charge of transport and communications under the State Council shall complete verification of the application for bill of lading registration and the certifying documents for the deposit within 15 days after receipt thereof, and shall, when the application document is real and complete, make registration and advise the applicant of the result, or when the application document is unreal and incomplete, refuse registration and advise the applicant in written form of the reason for refusal.
Article 9
Applicants for international shipping agency service shall meet the following requirements:
(1) having at the senior managerial level at least 2 staff members with not less than three years’ experience in the international shipping service; and
(2) having fixed place of business with appropriate business facilities.
Article 10
Applicants for international shipping agency service shall submit to the competent authorities in charge of transport and communications under the State Council the application form together with the relevant documents in conformity with the requirements contained in Article 9 of these Regulations. The competent authorities in charge of transport and communications under the State Council shall, within 15 days after receipt of the application, complete verification thereof, and shall, when the application is real and complete, make registration and advise the applicant of the result, or when the application is unreal and incomplete, refuse registration and advise the applicant in written form of the reason for refusal.
Article 11
Applicants for international ship management service shall meet the following requirements:
(1) having at the senior managerial level at least 2 staff members with not less than three years’ experience in the international shipping service;
(2) having staff members in possession of the master’s certificate or chief engineer’s certificate appropriate to the ship-type and trading zones of the fleet under management; and
(3) having equipment or facilities appropriate to the international ship management service.
Article 12
Applicants for international ship management service shall submit the application together with the relevant documents in conformity with the requirements contained in Article 11 of these Regulations to the competent transport department under the people’s government at the provincial, autonomous region level or under the municipality directly under the Central Government, where the place of business of the applicant is located. The competent transport department under the people’s government at the provincial, autonomous region level or under the municipality directly under the Central Government shall, within 15 days after the receipt of the application, complete verification thereof, and shall, when the application is real and complete, make registration and advise the applicant of the result, or when the application is unreal and incomplete, refuse to make registration and advise the applicant in written form of the reason for refusal.
Article 13
International shipping operators, non-vessel-operating common carriers, international shipping agencies or international ship management operators shall, after permit being granted and registration being made, make registration in accordance with the relevant law with the enterprise registration organization on the strength of the relevant proving documents.
Article 14
International shipping operators, non-vessel-operating common carriers, international shipping agencies or international ship management operators are not allowed to provide others with their legal business operation qualifications.
Article 15
When the international shipping operators, the non-vessel-operating common carriers, the international shipping agencies or the international ship management operators could, after obtaining the qualification for business operation in accordance with the provisions of these Regulations, no more satisfy the conditions specified in these Regulations, the competent authorities in charge of transport and communications under the State Council, or the competent transport department under the local people’s government at the provincial or autonomous region level, or under the municipality directly under the Central Government shall immediately deprive such operator of the qualification for business operation.
Article 16
International shipping operators with the intention to engage in international liner service for carriage of goods to and from the ports of the People’s Republic of China shall acquire the qualification for operation of international liner service in accordance with the provisions of these Regulations.
International shipping operators without the qualification for operation of international liner service are not allowed to undertake international liner service, nor to publish their liner schedule, or accept space booking.
Where the operation of international liner service is conducted in the form of mutual dispatching of vessels, exchange of slots or joint operation of the service etc., the provisions in paragraph 1 of this Article shall apply.
Article 17
Applicants for international liner service shall submit to the competent authorities in charge of transport and communications under the State Council their application together with the following documents:
(1) names of the international liner service operators, registered place of business, copies of the business license and names of the main investors;
(2) names and identification documents of the main staff at the managerial level of the operators;
(3) particulars of the carrying vessels;
(4) intended shipping lines, ship schedules and ports of call along the shipping lines;
(5) freight tariff; and
(6) samples of bill of lading, passage ticket or multimodal transport documents.
The competent authorities in charge of transport and communications under the State Council shall, within 30 days after the receipt of the application for international liner service, complete verification thereof, and shall, when the application is real and complete, make registration and advise the applicant of the result, or when the application in unreal and incomplete, refuse the registration and advise the applicant in written form of the reason for refusal.
Article 18
International liner operators shall start their liner service within 180 days after obtaining the qualification for the liner service and this time duration may be extended for other 90 days in case of force majeure and through approval of the competent authorities in charge of transport and communications under the State Council. In case of failure to start the liner service within the time duration, the qualification for the international liner service shall be deprived of upon expiration thereof.
Article 19
New shipping line, shipping line under suspension, or change of carrying vessel or schedule for international liner service shall be made known to the public 15 days in advance and shall be filed with the competent authorities in charge of transport and communications under the State Council within 15 days after such occurrence.
Article 20
The freight rates of the international liner service operators and the non-vessel-operating common carriers shall be filed in the exclusive forms with the competent authorities in charge of transport and communications under the State Council. The competent authorities in charge of transport and communications under the State Council shall appoint particular organization for filing of the freight rates.
The freight rates for filing shall include the tariff rates and the negotiated rates. The tariff rates refers to the freight rates indicated in the tariff by the international liner service operators and the non-vessel-operating common carriers while the negotiated freight rates refers to the freight rates agreed upon between the international liner service operators and the shippers or the non-vessel-operating common carriers.
The tariff rates shall come into effect 30 days after the day upon which the tariff rates have been accepted for filing by the competent authorities in charge of transport and communications under the State Council. The negotiated rates shall come into effect 24 hours after acceptance for filing by the competent authorities in charge of transport and communications under the State Council.
The international liner service operators and non-vessel-operating common carriers shall implement the filed effective tariff rates.
Article 21
The international liner service operators shall, upon conclusion of agreement on the negotiated rates with the non-vessel-operating common carriers, make certain that the non-vessel-operating common carriers have registered their bills of lading and made the required deposit in accordance with the provisions of these Regulations.
Article 22
Copies of liner conference agreements, service operation agreements and freight rate agreements concluded between the international shipping operators engaged in the international liner service with the Chinese ports involved therein shall be filed with the competent authorities in charge of transport and communications under the State Council within 15 days after conclusion thereof.
Article 23
International shipping service operators shall file with the competent authorities in charge of transport and communications under the State Council any of the following cases within 15 days after such occurrence:
(1) termination of service operation;
(2) reduction of carrying capacity;
(3) change of bills of lading, passage ticket or multimodal transport documents;
(4) establishment of overseas branches or engagement of subsidiaries in the international shipping service; or
(5) registration of owned vessel abroad and flying of foreign flag.
In case of addition of carrying capacity by the international shipping operators, the added vessels shall meet the safety technical standards specified by the State and be filed with the competent authorities in charge of transport and communications under the State Council 15 days prior to employment thereof. The competent authorities in charge of transport and communications under the State Council shall produce the proving documents for filing within 3 days after receipt of the application documents for filing.
Other Chinese shipping enterprises shall, under any of the cases as specified in subparagraphs (4) and (5) of paragraph 1 of this Article, file such occurrence in accordance with the provisions of paragraph 1 of this Article.
Article 24
In case of merging or acquisition between the international shipping operators, the merging or acquisition agreement shall be filed with the competent authorities in charge of transport and communications under the State Council for verification and approval.
The competent authorities in charge of transport and communications under the State Council shall, within 60 days after receipt of the merging or acquisition agreement from the international shipping operators, conduct verification thereof in accordance with the State policies for development of the international shipping industry and the practical conditions of competition in the international shipping market and shall make decision to show approval or disapproval, and shall advise the international shipping operators in written form of the result.
Article 25
International shipping operators, non-vessel-operating common carriers and international shipping agencies shall, in case of collection of freight and other related charges, or collection freight and other related charges on behalf of others within the Chinese territory, produce to the payers the invoices exclusively prepared by the taxation authorities in China.
Article 26
No operators shall be allowed to conduct non-vessel-operating service without registration of the bill of lading and making of the required deposit in accordance with the provisions of these Regulations.
Article 27
International shipping operators or non-vessel-operating common carriers are not allowed to commit any of the following conducts:
(1) to provide service with the freight rates lower than the normal and reasonable level, which prejudices the fair competition;
(1) to offer rebate to shippers outside the accounts for the purpose of soliciting cargo;
(2) to abuse the dominant position and offer discriminatory freight rates or other restrictive terms which are detrimental to other interesting parties; or
(3) to commit any other conduct detrimental to the counterpart or to the international shipping market order.
Article 28
International shipping operators of other nationality shall, in case of engagement in the international shipping activities as referred to in this Chapter, comply with the provisions of these Regulations.
No international shipping operator of other nationality is allowed to undertake carriage of goods between ports of the People’s Republic of China, nor to get involved in the carriage of goods between the ports of the People’s Republic of China in the form of ship-space chartering or chartering of vessels under the Chinese flag or ship-space exchange aboard vessels under the Chinese flag.
Article 29
International shipping agencies may, under the entrustment by shipowners, charterers or ship managers, undertake the following services:
(1) attending to procedures for ship’s port entry and departure, arranging pilotage, berthing and loading and unloading of vessels;
(2) signing bills of lading or transport contracts and accepting space booking on behalf of carriers;
(3) attending to customs formalities for vessels, containers and shipments;
(4) canvassing cargo, arranging shipments and attending to procedures for shipment and transshipment of cargoes and containers;
(5) collecting freight and settling payment on behalf of the entrusting parties;
(6) arranging passengers and attending to procedures for transport of passengers by sea; and
(7) other related services as entrusted by the entrusting party.
International shipping agencies shall, in accordance with the relevant State laws and regulations, pay taxes through deduction from the revenues of the foreign international shipping operators under their agency on the latter’s behalf.
Article 30
International ship management operators may, under the entrustment by shipowners, charterers or ship managers, undertake the following services:
(1) sale and purchase of vessels, ship-chartering and management of other assets relating to vessels;
(2) ship engineering, handling of navigational affairs and arrangement of ship repairs and maintenance;
(3) recruitment, training and manning of seafarers; and
(4) other related services to maintain technical standards of vessels and ensure safe navigation.
Article 31
The provisions of this Chapter are applicable to foreign investment in the international shipping and the related auxiliary services within the Chinese territory, and in absence of any particular provision in this Chapter relating thereto, the relevant provisions in other chapters of these Regulations shall apply.
Article 32
Foreign enterprises may, under the approval of the competent authorities in charge of transport and communications under the State Council, establish Sino-foreign funded joint ventures or cooperative enterprises in China in accordance with the relevant laws, administrative rules and regulations as well as other State regulations for engagement in the international shipping service, international shipping agency service, international ship management service, international seaborne cargo warehousing, and international seaborne container depot and container yard services, and may set up solely-funded enterprises in China to engage in international seaborne cargo warehousing service.
Sino-foreign funded enterprises for engagement in international shipping service or international shipping agency service shall be established with the foreign investment not exceeding 49%.
Sino-foreign cooperative enterprises for engagement in international shipping service or international shipping agency service shall be established with the foreign investment made in the proportion as referred to in the preceding paragraph of this Article.
The chairman of the board of directors and the general manager of Sino-foreign funded enterprises or cooperative enterprises for engagement in the international shipping service shall be appointed by the Chinese side through negotiation between the investors or cooperative parties.
Article 33
Foreign enterprises may, under the approval of the competent authorities in charge of transport and communications under the State Council, establish Sino-foreign funded enterprises, cooperative enterprises or solely-funded enterprises in China in accordance with the relevant laws, administrative rules and regulations as well as other relevant State regulations to conduct routine services such as canvassing of cargo, issuing of bills of lading, collecting of freight and signing of service contracts for the vessels owned or operated by such enterprise. Foreign enterprises without Sino-foreign funded enterprise, cooperative enterprise or solely-funded enterprise in China shall, in case of the above-mentioned services, entrust the Chinese international shipping agency operators for this purpose.
Article 34
Foreign enterprises engaged in international shipping service and the auxiliary service relating thereto may, under the approval by the competent authorities in charge of transport and communications under the State Council, set up representative offices within the Chinese territory in accordance with the relevant laws and regulations.
Representative offices set up by foreign international shipping operators or foreign shipping-related auxiliary service enterprises are not allowed to conduct profit-making business activities.
The competent authorities in charge of transport and communications under the State Council may, upon the request of the interesting parties or at its own discretion, conduct investigations on the following cases:
(1) liner conference agreement, operational agreement or freight rate agreement concluded between the international shipping operators engaged in the international liner service with Chinese ports involved therein, which is detrimental to the fair competition;
(2) service activities of the consortium set up by international shipping operators engaged in the international liner service through agreements that involve the shipping volume to exceed 30% of the aggregate shipping volume on one particular shipping line to and from the Chinese ports, which is detrimental to fair competition;
(3) any conduct as specified in Article 27 of these Regulations; and
(4) any other conduct detrimental to the fair competition in the international shipping market.
Article 36
The competent authorities in charge of transport and communications under the State Council shall, when the circumstance may require, conduct investigations jointly with the industrial and commercial administration authorities and the price authorities under the State Council (hereinafter referred to as the Investigating Authorities).
Article 37
The Investigating Authorities may, upon investigation, set up an investigating group composed of at least three investigators. The investigating group may, as the circumstance admits, invite the relevant specialists to join the group for investigation.
The investigating group shall, prior to investigation, advise the person under investigation of the purpose, reason and time for investigation. The time duration for investigation shall not exceed one year, but may, under the approval of the Investigating Authorities, be extended for an additional half a year, as the circumstance requires.
Article 38
Investigators may, upon investigation, inquire the person under investigation and consult enterprises and individuals having business relationship with the person under investigation, and make access to and copy the relevant documents, agreements, contracts, account books, business faxes and electronic data, as the circumstance requires.
Investigators shall, upon investigation, keep commercial confidentiality of the person under investigation and the enterprises and individuals having business relationship with the person under investigation.
Article 39
Persons under investigation shall accept investigation and provide the investigators with real information and materials. No person under investigation is allowed to refuse investigation, nor to conceal or forge evidence.
Article 40
The Investigating Authorities shall, after completion of investigation, make the conclusion of investigation and advise the person under investigation and the interesting parties of the results of investigation in written form.
The Investigating Authorities may advise the parties with their conduct detrimental to fair competition to take as remedy preventive and restrictive measures, such as to amend the agreement, to limit the voyage number of liner service, to terminate the freight tariff or suspend filing of the freight tariff and to submit the relevant information at regular intervals.
Article 41
The Investigating Authorities shall, prior to making decision as to take preventive and restrictive measures, advise the principal party of his right to attend the hearing and shall hold the hearing when the principal party so requires.
Article 42
Operators willfully engaged in the international shipping service without the Permit for International Shipping Service shall, as the case may be, be subject to the penalty of suspension of business transactions, or in case of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds the sum of RMB500,000 yuan, to a fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB500,000 yuan, subject to a fine between RMB200,000 yuan to RMB1,000,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 43
Operators willfully engaged in the international shipping service without registering their bills of lading or making the required deposit shall, as the case may be, be subject to the penalty of suspension of business transactions, or incase of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds RMB200,000 yuan, to the fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB100,000 yuan, to subject to a fine of between RMB50,000 to RMB200,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 44
Operators willfully engaged in the international shipping agency service or international shipping service without registration thereof shall, as the case may be, be subject to the penalty of suspension of business transactions, or in case of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds RMB50,000 yuan, to a fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB50,000 yuan, subject to a fine of between RMB20,000 to RMB100,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s governments.
Article 45
Foreign operators engaged in the international shipping service for carriage of goods between the ports of the People’s Republic of China, or for carriage of goods between the ports of the People’s Republic of China in the form of chartering of vessels under the Chinese flag, or space-chartering or space exchange in the vessels under the Chinese flag shall, as the case may be, be subject to the penalty of suspension of business transactions, or in case of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds RMB500,000 yuan, to a fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB500,000 yuan, subject to a fine between RMB200,000 to RMB1,000,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government. Where the operator under penalty refuses to stop business transactions, the vessels under his operation shall be refused to enter the Chinese ports, or where the consequence is severe, the operator under penalty shall be deprived of the qualifications for international shipping service.
Article 46
Operators willfully engaged in the international liner service without the qualification thereof shall, as the case may be, be subject to the penalty of suspension of business transactions, or in case of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds RMB500,000 yuan, to a fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB500,000 yuan, subject to a fine between RMB200,000 to RMB1,000,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s governments. Where the operator under penalty refuses to make rectification within the time limitation, the vessels under his operation shall be refused to enter the Chinese ports.
Article 47
Where the international shipping operators, non-vessel-operating common carriers, international shipping agency operators or the international ship management operators are found to have provided the others with their legally obtained qualification for such service, the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government shall advise such operator to make rectification within a fixed time limitation, and in case of default thereof, deprive such operator of its qualification for the service.
Article 48
Where operators fail to go through the filing procedures in accordance with the provisions of these Regulations, the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government shall advise such operator to make up the procedures with a fixed time limitation, and in case of default thereof, impose a fine between RMB10,000 to RMB50,000 yuan on such operator, or deprive such operator of the qualification of the service, as the case may be.
Article 49
Operators without filing the freight tariff or failing to enforce the filed freight tariff in accordance with the provisions of these Regulations shall be subject to the penalty of rectification and a fine between RMB20,000 to RMB100,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 50
Where an operator should be subject to an administrative penalty under the investigation conclusion or the operator has committed any of the conducts as specified Article 27 of these Regulations, the competent transport department, the price administration authorities and the industrial and commercial administration authorities shall impose appropriate penalties on such operator in accordance with the relevant laws and administrative rules and regulations.
Article 51
International shipping operators who have concluded negotiable freight rate agreement with the non-vessel-operating common carriers without making bill of lading registration or making the required deposit shall be subject to the penalty of warning or a fine between RMB20,000 to RMB100,000 yuan, as the case may be, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 52
Foreign international shipping operators and foreign international shipping-related auxiliary service enterprises shall, in case of willful establishment of representative office in China without the approval by the competent authorities in charge of transport land communications under the State Council, shall be subject to the penalty of rectification within a fixed time limitation and a fine between RMB20,000 to RMB100,000 yuan, as the case may be, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Representative offices set up by foreign international shipping operators and foreign international shipping-related auxiliary service enterprises in China shall, in case of engagement in profit-making operation, be subject to the penalty of suspension of business transactions and other appropriate penalties as imposed by the industrial and commercial administration authorities in accordance with the relevant rules and regulations.
Article 53
Operators or individuals shall, in case of refusal of investigation by the Investigating Authorities and its working staff or in case of concealing or forging evidence and information, be subject to the penalty of rectification and a fine between RMB20,000 to RMB100,000 yuan, as the case may be, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 54
Operators engaged in illegal international shipping service for carriage of goods to and from the People’ Republic of China and the shipping-related auxiliary service which disturbs the international shipping market order shall be subject to the criminal penalty in accordance with the provisions on illegal business operation under the Criminal Law.
Article 55
Working staff in the competent authorities in charge of transport and communications under the State Council or in the transport department under the local people’s governments shall, in case of commitment of any of the following conducts that results in severe consequence against the criminal law, be subject to the criminal penalty in accordance with the provisions on abuse of authority, neglect of duties etc. under the Criminal Law, or to administrative penalties where the criminal penalty is not applicable:
(1) failure to go through the procedures for verification, approval, registration and filing for applicants in conformity with the provisions of these Regulations, or offering procedures for verification, approval, registration and filing for applicants not in conformity with the provisions of these Regulations;
(2) failure to exercise supervision and administration over the international shipping operators, non-vessel-operating common carriers, international shipping agency operators or international ship management operators through verification, approval, registration and filing, or failure to deprive the operator of the qualification for service, who has no more satisfied the conditions contained in these Regulations, or failure to dispose of illegal conducts of operators with such knowledge; or
(3) failure to deprive the operators of their qualifications for service, who have been found during the investigation to conduct willful operation of international shipping service as well as the related auxiliary service without the procedures of verification, approval, registration and filing, or failure to dispose of illegal conducts in accordance with laws when such illegal conducts have been disclosed
Article 56
In case of investment in the international shipping service and the related auxiliary service in mainland China by investors from the Hong Kong Special Administrative Region, the Macau Special Administrative Region and the Taiwan region, the provisions of these Regulations shall apply.
Article 57
No foreign international shipping operator is allowed to undertake the international shipping service between mainland China and the Hong Kong Special Administrative Region or the Macau Special Administrative Region, nor to conduct the direct sailing or shipping service via a third place across the Taiwan Strait between mainland China and the Taiwan region without the approval by the competent authorities in charge of transport and communications under the State Council.
Article 58
The specific rules on the shipping service between mainland China and the Hong Kong Special Administrative Region and the Macau Special Administrative Region shall be formulated by the competent authorities in charge of transport and communications under the State Council in accordance with the provisions of these Regulations.
The shipping service between mainland China and the Taiwan region shall be governed by the relevant rules and regulations of the State.
Article 59
Where any country or region has taken up any forbidding, restrictive or other similar measures of discriminatory nature against any Chinese international shipping operator, any vessel under the Chinese flag or Chinese crew, the government of the People’s Republic of China shall, on the basis of reciprocity, take appropriate corresponding measures against such country or region.
Article 60
Operators who have been engaged in the international shipping service or the related auxiliary service prior to the enforcement of these Regulations shall carry out the make-up procedures in accordance with the provisions of these Regulations within 60 days after the day of enforcement of these Regulations.
Article 61
These Regulations shall come into force from January 1st of 2002 and the Regulations for International Seaborne Container Transport of the People’ Republic of China promulgated by the State Council on December 5th, 1990 and revised by the State Council on April 18th, 1998 becomes null and void and of no effect.
Article 1
These Regulations are formulated for the purpose of regulating the international shipping service, protecting the fair competition, maintaining the international shipping market order and protecting the legitimate rights and interests of the relevant parties involved in the international shipping service.
Article 2
These Regulations are applicable to the international shipping activities for carriage of goods to and from the ports of the People’s Republic of China as well as the auxiliary business activities relating thereto.
The auxiliary business activities relating to the international shipping service as referred to in the preceding paragraph includes the business activities relating to the international shipping agency service, international ship management, loading and unloading, storage and warehousing for international shipments and international seaborne container freight station and container yard services, etc.
Article 3
Operators engaged in the international shipping service as well as the auxiliary business activities relating thereto shall abide by the principle of good credit and faithfulness, and conduct lawful operation under fair competition.
Article 4
The competent authorities in charge of transport and communications under the State Council and the relevant transport departments under the local people’s governments shall, in accordance with the provisions of these Regulations, exercise supervision and administration over the international shipping service as well as the auxiliary business activities relating thereto.
Article 5
Applicants for engagement in the international shipping service shall meet the following requirements:
(1) owing vessels capable of employment in the international shipping service, among which there must be Chinese flag vessels;
(2) vessels under employment to satisfy the technical standards for maritime traffic safety as specified by the State;
(3) having own bill of lading, passage ticket or multimodal transport documents; and
(4) having senior business management staff with the qualifications as specified by the competent authorities in charge of transport and communications under the State Council.
Article 6
Applicants for the international shipping service shall submit an application and the relevant documents in conformity with the requirements contained in Article 5 of these Regulations to the competent authorities in charge of transport and communications under the State Council. The competent authorities in charge of transport and communications under the State Council shall, within 30 days after receipt of the application and related documents, complete verification thereof, and shall, when permit is granted, issue the Permits for International Shipping Service Operation to the applicants, or when permit is refused, advise the applicants in written form of the reason for refusal.
The competent authorities in charge of transport and communications under the State Council shall, upon verification of the application for the international shipping service, give due regards to the State policy for development of the international shipping industry and to the practical conditions of competition in the international shipping market.
Applicants for the international shipping service and for the international liner service as well shall, in addition to the application, submit concurrently the relevant documents as specified in Article 17 of these Regulations to the competent authorities in charge of transport and communications under the State Council for exclusive evaluation and registration.
Article 7
Applicants for non-vessel-operating service shall register the bill of lading with the competent authorities in charge of transport and communications under the State Council and necessary deposit shall be made therewith.
The non-vessel-operating service as referred to in the preceding paragraph means that the non-vessel-operating common carrier accepts shipments from the shippers, issues its own bills of lading or other shipping documents, procures through the international shipping operator the carriage of goods by sea against payment of freight by the shippers, and undertakes the international shipping service under the responsibility as the carrier.
Carriers for non-vessel-operating service within the Chinese territory shall establish the enterprise corporation within the Chinese territory.
Article 8
Carriers for non-vessel-operating service shall, upon submission of the application for bill of lading registration to the competent authorities in charge of transport and communications under the State Council, submit concurrently the relevant documents certifying that the required deposit has been made in accordance with the provisions of these Regulations.
The deposit as referred to in the preceding paragraph shall be made with a sum of RMB800,000 yuan and an additional sum of RMB200,000 yuan is required for each subsequent branch. The deposit shall be made to the designated bank accounts at the banks established in the Chinese territory.
The deposit shall be made as the liquidation for payment of debts or fines incurred for non-performance or improper performance of responsibilities by the non-vessel-operating common carriers. The deposit and the interests accrued therefrom shall belong to the non-vessel-operating common carriers and the designated account shall be subject to the supervision by the competent authorities in charge of transport and communications under the State Council.
The competent authorities in charge of transport and communications under the State Council shall complete verification of the application for bill of lading registration and the certifying documents for the deposit within 15 days after receipt thereof, and shall, when the application document is real and complete, make registration and advise the applicant of the result, or when the application document is unreal and incomplete, refuse registration and advise the applicant in written form of the reason for refusal.
Article 9
Applicants for international shipping agency service shall meet the following requirements:
(1) having at the senior managerial level at least 2 staff members with not less than three years’ experience in the international shipping service; and
(2) having fixed place of business with appropriate business facilities.
Article 10
Applicants for international shipping agency service shall submit to the competent authorities in charge of transport and communications under the State Council the application form together with the relevant documents in conformity with the requirements contained in Article 9 of these Regulations. The competent authorities in charge of transport and communications under the State Council shall, within 15 days after receipt of the application, complete verification thereof, and shall, when the application is real and complete, make registration and advise the applicant of the result, or when the application is unreal and incomplete, refuse registration and advise the applicant in written form of the reason for refusal.
Article 11
Applicants for international ship management service shall meet the following requirements:
(1) having at the senior managerial level at least 2 staff members with not less than three years’ experience in the international shipping service;
(2) having staff members in possession of the master’s certificate or chief engineer’s certificate appropriate to the ship-type and trading zones of the fleet under management; and
(3) having equipment or facilities appropriate to the international ship management service.
Article 12
Applicants for international ship management service shall submit the application together with the relevant documents in conformity with the requirements contained in Article 11 of these Regulations to the competent transport department under the people’s government at the provincial, autonomous region level or under the municipality directly under the Central Government, where the place of business of the applicant is located. The competent transport department under the people’s government at the provincial, autonomous region level or under the municipality directly under the Central Government shall, within 15 days after the receipt of the application, complete verification thereof, and shall, when the application is real and complete, make registration and advise the applicant of the result, or when the application is unreal and incomplete, refuse to make registration and advise the applicant in written form of the reason for refusal.
Article 13
International shipping operators, non-vessel-operating common carriers, international shipping agencies or international ship management operators shall, after permit being granted and registration being made, make registration in accordance with the relevant law with the enterprise registration organization on the strength of the relevant proving documents.
Article 14
International shipping operators, non-vessel-operating common carriers, international shipping agencies or international ship management operators are not allowed to provide others with their legal business operation qualifications.
Article 15
When the international shipping operators, the non-vessel-operating common carriers, the international shipping agencies or the international ship management operators could, after obtaining the qualification for business operation in accordance with the provisions of these Regulations, no more satisfy the conditions specified in these Regulations, the competent authorities in charge of transport and communications under the State Council, or the competent transport department under the local people’s government at the provincial or autonomous region level, or under the municipality directly under the Central Government shall immediately deprive such operator of the qualification for business operation.
Article 16
International shipping operators with the intention to engage in international liner service for carriage of goods to and from the ports of the People’s Republic of China shall acquire the qualification for operation of international liner service in accordance with the provisions of these Regulations.
International shipping operators without the qualification for operation of international liner service are not allowed to undertake international liner service, nor to publish their liner schedule, or accept space booking.
Where the operation of international liner service is conducted in the form of mutual dispatching of vessels, exchange of slots or joint operation of the service etc., the provisions in paragraph 1 of this Article shall apply.
Article 17
Applicants for international liner service shall submit to the competent authorities in charge of transport and communications under the State Council their application together with the following documents:
(1) names of the international liner service operators, registered place of business, copies of the business license and names of the main investors;
(2) names and identification documents of the main staff at the managerial level of the operators;
(3) particulars of the carrying vessels;
(4) intended shipping lines, ship schedules and ports of call along the shipping lines;
(5) freight tariff; and
(6) samples of bill of lading, passage ticket or multimodal transport documents.
The competent authorities in charge of transport and communications under the State Council shall, within 30 days after the receipt of the application for international liner service, complete verification thereof, and shall, when the application is real and complete, make registration and advise the applicant of the result, or when the application in unreal and incomplete, refuse the registration and advise the applicant in written form of the reason for refusal.
Article 18
International liner operators shall start their liner service within 180 days after obtaining the qualification for the liner service and this time duration may be extended for other 90 days in case of force majeure and through approval of the competent authorities in charge of transport and communications under the State Council. In case of failure to start the liner service within the time duration, the qualification for the international liner service shall be deprived of upon expiration thereof.
Article 19
New shipping line, shipping line under suspension, or change of carrying vessel or schedule for international liner service shall be made known to the public 15 days in advance and shall be filed with the competent authorities in charge of transport and communications under the State Council within 15 days after such occurrence.
Article 20
The freight rates of the international liner service operators and the non-vessel-operating common carriers shall be filed in the exclusive forms with the competent authorities in charge of transport and communications under the State Council. The competent authorities in charge of transport and communications under the State Council shall appoint particular organization for filing of the freight rates.
The freight rates for filing shall include the tariff rates and the negotiated rates. The tariff rates refers to the freight rates indicated in the tariff by the international liner service operators and the non-vessel-operating common carriers while the negotiated freight rates refers to the freight rates agreed upon between the international liner service operators and the shippers or the non-vessel-operating common carriers.
The tariff rates shall come into effect 30 days after the day upon which the tariff rates have been accepted for filing by the competent authorities in charge of transport and communications under the State Council. The negotiated rates shall come into effect 24 hours after acceptance for filing by the competent authorities in charge of transport and communications under the State Council.
The international liner service operators and non-vessel-operating common carriers shall implement the filed effective tariff rates.
Article 21
The international liner service operators shall, upon conclusion of agreement on the negotiated rates with the non-vessel-operating common carriers, make certain that the non-vessel-operating common carriers have registered their bills of lading and made the required deposit in accordance with the provisions of these Regulations.
Article 22
Copies of liner conference agreements, service operation agreements and freight rate agreements concluded between the international shipping operators engaged in the international liner service with the Chinese ports involved therein shall be filed with the competent authorities in charge of transport and communications under the State Council within 15 days after conclusion thereof.
Article 23
International shipping service operators shall file with the competent authorities in charge of transport and communications under the State Council any of the following cases within 15 days after such occurrence:
(1) termination of service operation;
(2) reduction of carrying capacity;
(3) change of bills of lading, passage ticket or multimodal transport documents;
(4) establishment of overseas branches or engagement of subsidiaries in the international shipping service; or
(5) registration of owned vessel abroad and flying of foreign flag.
In case of addition of carrying capacity by the international shipping operators, the added vessels shall meet the safety technical standards specified by the State and be filed with the competent authorities in charge of transport and communications under the State Council 15 days prior to employment thereof. The competent authorities in charge of transport and communications under the State Council shall produce the proving documents for filing within 3 days after receipt of the application documents for filing.
Other Chinese shipping enterprises shall, under any of the cases as specified in subparagraphs (4) and (5) of paragraph 1 of this Article, file such occurrence in accordance with the provisions of paragraph 1 of this Article.
Article 24
In case of merging or acquisition between the international shipping operators, the merging or acquisition agreement shall be filed with the competent authorities in charge of transport and communications under the State Council for verification and approval.
The competent authorities in charge of transport and communications under the State Council shall, within 60 days after receipt of the merging or acquisition agreement from the international shipping operators, conduct verification thereof in accordance with the State policies for development of the international shipping industry and the practical conditions of competition in the international shipping market and shall make decision to show approval or disapproval, and shall advise the international shipping operators in written form of the result.
Article 25
International shipping operators, non-vessel-operating common carriers and international shipping agencies shall, in case of collection of freight and other related charges, or collection freight and other related charges on behalf of others within the Chinese territory, produce to the payers the invoices exclusively prepared by the taxation authorities in China.
Article 26
No operators shall be allowed to conduct non-vessel-operating service without registration of the bill of lading and making of the required deposit in accordance with the provisions of these Regulations.
Article 27
International shipping operators or non-vessel-operating common carriers are not allowed to commit any of the following conducts:
(1) to provide service with the freight rates lower than the normal and reasonable level, which prejudices the fair competition;
(1) to offer rebate to shippers outside the accounts for the purpose of soliciting cargo;
(2) to abuse the dominant position and offer discriminatory freight rates or other restrictive terms which are detrimental to other interesting parties; or
(3) to commit any other conduct detrimental to the counterpart or to the international shipping market order.
Article 28
International shipping operators of other nationality shall, in case of engagement in the international shipping activities as referred to in this Chapter, comply with the provisions of these Regulations.
No international shipping operator of other nationality is allowed to undertake carriage of goods between ports of the People’s Republic of China, nor to get involved in the carriage of goods between the ports of the People’s Republic of China in the form of ship-space chartering or chartering of vessels under the Chinese flag or ship-space exchange aboard vessels under the Chinese flag.
Article 29
International shipping agencies may, under the entrustment by shipowners, charterers or ship managers, undertake the following services:
(1) attending to procedures for ship’s port entry and departure, arranging pilotage, berthing and loading and unloading of vessels;
(2) signing bills of lading or transport contracts and accepting space booking on behalf of carriers;
(3) attending to customs formalities for vessels, containers and shipments;
(4) canvassing cargo, arranging shipments and attending to procedures for shipment and transshipment of cargoes and containers;
(5) collecting freight and settling payment on behalf of the entrusting parties;
(6) arranging passengers and attending to procedures for transport of passengers by sea; and
(7) other related services as entrusted by the entrusting party.
International shipping agencies shall, in accordance with the relevant State laws and regulations, pay taxes through deduction from the revenues of the foreign international shipping operators under their agency on the latter’s behalf.
Article 30
International ship management operators may, under the entrustment by shipowners, charterers or ship managers, undertake the following services:
(1) sale and purchase of vessels, ship-chartering and management of other assets relating to vessels;
(2) ship engineering, handling of navigational affairs and arrangement of ship repairs and maintenance;
(3) recruitment, training and manning of seafarers; and
(4) other related services to maintain technical standards of vessels and ensure safe navigation.
Article 31
The provisions of this Chapter are applicable to foreign investment in the international shipping and the related auxiliary services within the Chinese territory, and in absence of any particular provision in this Chapter relating thereto, the relevant provisions in other chapters of these Regulations shall apply.
Article 32
Foreign enterprises may, under the approval of the competent authorities in charge of transport and communications under the State Council, establish Sino-foreign funded joint ventures or cooperative enterprises in China in accordance with the relevant laws, administrative rules and regulations as well as other State regulations for engagement in the international shipping service, international shipping agency service, international ship management service, international seaborne cargo warehousing, and international seaborne container depot and container yard services, and may set up solely-funded enterprises in China to engage in international seaborne cargo warehousing service.
Sino-foreign funded enterprises for engagement in international shipping service or international shipping agency service shall be established with the foreign investment not exceeding 49%.
Sino-foreign cooperative enterprises for engagement in international shipping service or international shipping agency service shall be established with the foreign investment made in the proportion as referred to in the preceding paragraph of this Article.
The chairman of the board of directors and the general manager of Sino-foreign funded enterprises or cooperative enterprises for engagement in the international shipping service shall be appointed by the Chinese side through negotiation between the investors or cooperative parties.
Article 33
Foreign enterprises may, under the approval of the competent authorities in charge of transport and communications under the State Council, establish Sino-foreign funded enterprises, cooperative enterprises or solely-funded enterprises in China in accordance with the relevant laws, administrative rules and regulations as well as other relevant State regulations to conduct routine services such as canvassing of cargo, issuing of bills of lading, collecting of freight and signing of service contracts for the vessels owned or operated by such enterprise. Foreign enterprises without Sino-foreign funded enterprise, cooperative enterprise or solely-funded enterprise in China shall, in case of the above-mentioned services, entrust the Chinese international shipping agency operators for this purpose.
Article 34
Foreign enterprises engaged in international shipping service and the auxiliary service relating thereto may, under the approval by the competent authorities in charge of transport and communications under the State Council, set up representative offices within the Chinese territory in accordance with the relevant laws and regulations.
Representative offices set up by foreign international shipping operators or foreign shipping-related auxiliary service enterprises are not allowed to conduct profit-making business activities.
The competent authorities in charge of transport and communications under the State Council may, upon the request of the interesting parties or at its own discretion, conduct investigations on the following cases:
(1) liner conference agreement, operational agreement or freight rate agreement concluded between the international shipping operators engaged in the international liner service with Chinese ports involved therein, which is detrimental to the fair competition;
(2) service activities of the consortium set up by international shipping operators engaged in the international liner service through agreements that involve the shipping volume to exceed 30% of the aggregate shipping volume on one particular shipping line to and from the Chinese ports, which is detrimental to fair competition;
(3) any conduct as specified in Article 27 of these Regulations; and
(4) any other conduct detrimental to the fair competition in the international shipping market.
Article 36
The competent authorities in charge of transport and communications under the State Council shall, when the circumstance may require, conduct investigations jointly with the industrial and commercial administration authorities and the price authorities under the State Council (hereinafter referred to as the Investigating Authorities).
Article 37
The Investigating Authorities may, upon investigation, set up an investigating group composed of at least three investigators. The investigating group may, as the circumstance admits, invite the relevant specialists to join the group for investigation.
The investigating group shall, prior to investigation, advise the person under investigation of the purpose, reason and time for investigation. The time duration for investigation shall not exceed one year, but may, under the approval of the Investigating Authorities, be extended for an additional half a year, as the circumstance requires.
Article 38
Investigators may, upon investigation, inquire the person under investigation and consult enterprises and individuals having business relationship with the person under investigation, and make access to and copy the relevant documents, agreements, contracts, account books, business faxes and electronic data, as the circumstance requires.
Investigators shall, upon investigation, keep commercial confidentiality of the person under investigation and the enterprises and individuals having business relationship with the person under investigation.
Article 39
Persons under investigation shall accept investigation and provide the investigators with real information and materials. No person under investigation is allowed to refuse investigation, nor to conceal or forge evidence.
Article 40
The Investigating Authorities shall, after completion of investigation, make the conclusion of investigation and advise the person under investigation and the interesting parties of the results of investigation in written form.
The Investigating Authorities may advise the parties with their conduct detrimental to fair competition to take as remedy preventive and restrictive measures, such as to amend the agreement, to limit the voyage number of liner service, to terminate the freight tariff or suspend filing of the freight tariff and to submit the relevant information at regular intervals.
Article 41
The Investigating Authorities shall, prior to making decision as to take preventive and restrictive measures, advise the principal party of his right to attend the hearing and shall hold the hearing when the principal party so requires.
Article 42
Operators willfully engaged in the international shipping service without the Permit for International Shipping Service shall, as the case may be, be subject to the penalty of suspension of business transactions, or in case of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds the sum of RMB500,000 yuan, to a fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB500,000 yuan, subject to a fine between RMB200,000 yuan to RMB1,000,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 43
Operators willfully engaged in the international shipping service without registering their bills of lading or making the required deposit shall, as the case may be, be subject to the penalty of suspension of business transactions, or incase of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds RMB200,000 yuan, to the fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB100,000 yuan, to subject to a fine of between RMB50,000 to RMB200,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 44
Operators willfully engaged in the international shipping agency service or international shipping service without registration thereof shall, as the case may be, be subject to the penalty of suspension of business transactions, or in case of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds RMB50,000 yuan, to a fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB50,000 yuan, subject to a fine of between RMB20,000 to RMB100,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s governments.
Article 45
Foreign operators engaged in the international shipping service for carriage of goods between the ports of the People’s Republic of China, or for carriage of goods between the ports of the People’s Republic of China in the form of chartering of vessels under the Chinese flag, or space-chartering or space exchange in the vessels under the Chinese flag shall, as the case may be, be subject to the penalty of suspension of business transactions, or in case of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds RMB500,000 yuan, to a fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB500,000 yuan, subject to a fine between RMB200,000 to RMB1,000,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government. Where the operator under penalty refuses to stop business transactions, the vessels under his operation shall be refused to enter the Chinese ports, or where the consequence is severe, the operator under penalty shall be deprived of the qualifications for international shipping service.
Article 46
Operators willfully engaged in the international liner service without the qualification thereof shall, as the case may be, be subject to the penalty of suspension of business transactions, or in case of illegal income, to the penalty of confiscation thereof, or where the illegal income exceeds RMB500,000 yuan, to a fine of two times to five times of the illegal income, or where the operator has no illegal income or the illegal income is less than RMB500,000 yuan, subject to a fine between RMB200,000 to RMB1,000,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s governments. Where the operator under penalty refuses to make rectification within the time limitation, the vessels under his operation shall be refused to enter the Chinese ports.
Article 47
Where the international shipping operators, non-vessel-operating common carriers, international shipping agency operators or the international ship management operators are found to have provided the others with their legally obtained qualification for such service, the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government shall advise such operator to make rectification within a fixed time limitation, and in case of default thereof, deprive such operator of its qualification for the service.
Article 48
Where operators fail to go through the filing procedures in accordance with the provisions of these Regulations, the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government shall advise such operator to make up the procedures with a fixed time limitation, and in case of default thereof, impose a fine between RMB10,000 to RMB50,000 yuan on such operator, or deprive such operator of the qualification of the service, as the case may be.
Article 49
Operators without filing the freight tariff or failing to enforce the filed freight tariff in accordance with the provisions of these Regulations shall be subject to the penalty of rectification and a fine between RMB20,000 to RMB100,000 yuan, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 50
Where an operator should be subject to an administrative penalty under the investigation conclusion or the operator has committed any of the conducts as specified Article 27 of these Regulations, the competent transport department, the price administration authorities and the industrial and commercial administration authorities shall impose appropriate penalties on such operator in accordance with the relevant laws and administrative rules and regulations.
Article 51
International shipping operators who have concluded negotiable freight rate agreement with the non-vessel-operating common carriers without making bill of lading registration or making the required deposit shall be subject to the penalty of warning or a fine between RMB20,000 to RMB100,000 yuan, as the case may be, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 52
Foreign international shipping operators and foreign international shipping-related auxiliary service enterprises shall, in case of willful establishment of representative office in China without the approval by the competent authorities in charge of transport land communications under the State Council, shall be subject to the penalty of rectification within a fixed time limitation and a fine between RMB20,000 to RMB100,000 yuan, as the case may be, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Representative offices set up by foreign international shipping operators and foreign international shipping-related auxiliary service enterprises in China shall, in case of engagement in profit-making operation, be subject to the penalty of suspension of business transactions and other appropriate penalties as imposed by the industrial and commercial administration authorities in accordance with the relevant rules and regulations.
Article 53
Operators or individuals shall, in case of refusal of investigation by the Investigating Authorities and its working staff or in case of concealing or forging evidence and information, be subject to the penalty of rectification and a fine between RMB20,000 to RMB100,000 yuan, as the case may be, as imposed by the competent authorities in charge of transport and communications under the State Council or its authorized transport department under the local people’s government.
Article 54
Operators engaged in illegal international shipping service for carriage of goods to and from the People’ Republic of China and the shipping-related auxiliary service which disturbs the international shipping market order shall be subject to the criminal penalty in accordance with the provisions on illegal business operation under the Criminal Law.
Article 55
Working staff in the competent authorities in charge of transport and communications under the State Council or in the transport department under the local people’s governments shall, in case of commitment of any of the following conducts that results in severe consequence against the criminal law, be subject to the criminal penalty in accordance with the provisions on abuse of authority, neglect of duties etc. under the Criminal Law, or to administrative penalties where the criminal penalty is not applicable:
(1) failure to go through the procedures for verification, approval, registration and filing for applicants in conformity with the provisions of these Regulations, or offering procedures for verification, approval, registration and filing for applicants not in conformity with the provisions of these Regulations;
(2) failure to exercise supervision and administration over the international shipping operators, non-vessel-operating common carriers, international shipping agency operators or international ship management operators through verification, approval, registration and filing, or failure to deprive the operator of the qualification for service, who has no more satisfied the conditions contained in these Regulations, or failure to dispose of illegal conducts of operators with such knowledge; or
(3) failure to deprive the operators of their qualifications for service, who have been found during the investigation to conduct willful operation of international shipping service as well as the related auxiliary service without the procedures of verification, approval, registration and filing, or failure to dispose of illegal conducts in accordance with laws when such illegal conducts have been disclosed
Article 56
In case of investment in the international shipping service and the related auxiliary service in mainland China by investors from the Hong Kong Special Administrative Region, the Macau Special Administrative Region and the Taiwan region, the provisions of these Regulations shall apply.
Article 57
No foreign international shipping operator is allowed to undertake the international shipping service between mainland China and the Hong Kong Special Administrative Region or the Macau Special Administrative Region, nor to conduct the direct sailing or shipping service via a third place across the Taiwan Strait between mainland China and the Taiwan region without the approval by the competent authorities in charge of transport and communications under the State Council.
Article 58
The specific rules on the shipping service between mainland China and the Hong Kong Special Administrative Region and the Macau Special Administrative Region shall be formulated by the competent authorities in charge of transport and communications under the State Council in accordance with the provisions of these Regulations.
The shipping service between mainland China and the Taiwan region shall be governed by the relevant rules and regulations of the State.
Article 59
Where any country or region has taken up any forbidding, restrictive or other similar measures of discriminatory nature against any Chinese international shipping operator, any vessel under the Chinese flag or Chinese crew, the government of the People’s Republic of China shall, on the basis of reciprocity, take appropriate corresponding measures against such country or region.
Article 60
Operators who have been engaged in the international shipping service or the related auxiliary service prior to the enforcement of these Regulations shall carry out the make-up procedures in accordance with the provisions of these Regulations within 60 days after the day of enforcement of these Regulations.
Article 61
These Regulations shall come into force from January 1st of 2002 and the Regulations for International Seaborne Container Transport of the People’ Republic of China promulgated by the State Council on December 5th, 1990 and revised by the State Council on April 18th, 1998 becomes null and void and of no effect.
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