Order of the State Council of the People’s Republic of China (No.335)
The Regulations of the People’s Republic of China on International Ocean Shipping has been adopted at the 49th Executive Meeting of the State Council on December 5, 2001 and is hereby promulgated, and shall come into force on Jan. 1, 2002.
Premier Zhu Rongji
Dec. 11, 2001
Regulations of the People’s Republic of China on International Ocean Shipping
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) Having the ships accommodated to international ocean shipping operations, among which there must be Chinese ships;
2) Putting the ships into operation in accord with the technological standards of ocean shipping safety prescribed by the State;
3) Having bills of lading, passenger tickets or multimode transport documents;
4) 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 17 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 A party shall meet the following conditions to operate the international ship agency business:
1) At least 2 of the senior managerial personnel having no less than 3 years experience of international ocean shipping business;
2) Having fixed business sites and necessary business facilities.
Article 10 To operate the international ship agency business, a 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 9 of these Regulations. The department in charge of transportation under the State Council shall finish the examination within 15 days from the day of receiving the application. Where the application materials are true and complete, the registration shall be made and the applicant 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 11 A party shall meet the following conditions to operate the international ship management business:
1) At least 2 of the senior managerial personnel having no less than 3 years experience of international ship management business;
2) Having the personnel holding the post certificates of shipmaster and chief engineer in accordance with the relevant types of the managed ships and the shipping areas;
3) Having the equipment and facilities accommodated to the international ship management business.
Article 12 To operate the international ship management business, the party shall file an application with the department in charge of transportation under the people’s government of the province, autonomous region, or municipality directly under the State Council where the business to be operated is located, and shall attach the relevant materials meeting the conditions as prescribed in Article 11 of these Regulations. The department in charge of transportation under the people’s government of the province, autonomous region, or municipality directly under the State Council shall finish the examination within 15 days from the day of receiving the application. Where the application materials are true and complete, the registration shall be made and the applicant 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 operators, non-vessel shipping operators, international ship agency operators and international ship management operators shall, after being approved and registered according to these Regulations, go through the procedures for enterprise registration at the departments of enterprise registration, taking with them the relevant certifications.
Article 14 The international shipping operators, non-vessel shipping operators, international ship agency operators and international ship management operators may not provide for the use of others the operation qualifications they obtained according to law.
Article 15 Where an international shipping operator, non-vessel shipping operator, international ship agency operator, or international ship management 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 and the department in charge of transportation under the people’s government of the province, autonomous region, or municipality directly under the State Council shall cancel his operation qualification immediately.
Chapter 3 International Ocean Shipping and the Auxiliary Business Operations Thereof
Article 16 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 17 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 18 The international shipping operator that has obtained the operation qualification for international liner shipping shall start sailing within 180 days from the day of obtaining the qualification; and may, with the approval of the department in charge of transportation under the State Council, extend the period for 90 days as a result of force majeure. In case of failure to start sailing within that period, the operation qualification for international liner shipping shall be forfeited upon expiration of that period.
Article 19 In case of the opening or termination of an international liner shipping route, or change of ships or schedule of international liner shipping, a public announcement shall be made 15 days prior, and the matter shall be reported to the department in charge of transportation under the State Council for record within 15 days from the day when the action is conducted.
Article 20 The freight rate of an international shipping operator that operates international liner shipping and that of a non-vessel shipping operator shall be reported to the department in charge of transportation under the State Council for record according to the prescribed format. The department in charge of transportation under the State Council shall designate special agencies to accept the report of freight rate for record.
The recorded freight rate falls into the categories of publicized freight rate and negotiated freight rate. Publicized freight rate refers to the rate indicated on the freight rate book of the international shipping operator and the non-vessel shipping operator; negotiated freight rate refers to the freight rate agreed upon by the international shipping operator and the shipper or the non-vessel shipping operator.
Publicized freight rate shall take effect in 30 days from the day on which the department in charge of transportation under the State Council accepts the report for record; negotiated freight rate shall take effect 24 hours from the time the department in charge of transportation under the State Council accepts the report for record.
The international shipping operator and the non-vessel shipping operator shall carry out the recorded freight rate that has taken effect.
Article 21 When setting the negotiated freight rate with the non-vessel shipping operator, the international shipping operator shall confirm that the non-vessel shipping operator has made the registration of bill of lading and paid the security deposit according to the provisions of these Regulations.
Article 22 Where the international shipping operators engaged in international liner shipping make any liner conference agreement, operation agreement, or freight rate agreement, etc. between themselves, they shall submit the copy of the agreement to the department in charge of transportation under the State Council for record within 15 days from the day on which the agreement is made.
Article 23 Where an international shipping operator has conducted any of the following actions, he shall report to the department in charge of transportation under the State Council for record within 15 days from the day such action is conducted:
1) Terminating the business operations;
2) Reducing the number of ships in operation;
3) Changing the bills of lading, passenger tickets, or multimode transport documents;
4) Setting up branches or subsidiaries in foreign countries to operate international shipping;
5) Registering the ships he owns in foreign countries and hanging foreign flags.
Where the international shipping operator adds ships in operation, the added ships must be in line with the standards of safety and technology as prescribed by the State, and shall be reported to the department in charge of transportation under the State Council for record in 15 days before being put into operation. The department in charge of transportation under the State Council shall issue the certifications of record within 3 days from the day of receiving the materials for record.
Where other state-owned enterprises have conducted any of the actions listed in Item 4) and Item 5) of the first paragraph of this Article, they shall go through the procedures for record according to the provisions of the first paragraph of this Article.
Article 24 In case of merger or purchase between international shipping operators, the agreement on merger or purchase shall be submitted to the department in charge of transportation under the State Council for examination and approval.
The department in charge of transportation under the State Council shall, within 60 days from the day of receiving the agreements on merger or purchase submitted by the international shipping operators, make the examination according to the policies of the State on the development of the international ocean shipping industry and the competition on the international ocean shipping market, make the decision on whether to grant approval or not, and shall notify the international shipping operators concerned in written form.
Article 25 Those that operate international shipping, non-vessel shipping or international ship agency business shall, when taking or taking as an agent the freight charges and other relevant charges within the territory of China, issue the invoices uniformly printed by the taxation organs of China to the payers.
Article 26 Those that fail to make the registration of bill of lading and pay the security deposit against the provisions of these Regulations may not engage in the business of non-vessel shipping.
Article 27 Those engaged in the international shipping or non-vessel shipping business may not conduct the following actions:
1) Providing services at a freight rate lower than the normal and reasonable level to impede fair competition;
2) Giving discounts to the shipper secretly out of the books to contract goods for shipping;
3) Abusing superior status, and impairing the dealing party through discriminatory prices or other restrictive conditions;
4) Other actions that impair the dealing party or the order of the international ocean shipping market.
Article 28 Foreign shipping operators shall observe the relevant provisions of these Regulations when engaging in the relevant activities of international shipping as prescribed in this Chapter.
Foreign international shipping operators may not operate the shipping business between Chinese ports, neither may they operate the shipping business between Chinese ports in disguised forms such as using the rented Chinese ships or shipping space, or exchanging the shipping space, etc.
Article 29 International ship agency operators may accept the entrustment of the ship owners, ship renters, or ship operators to operate the following businesses:
1) Handling the procedures for the entry and exit ports for ships, contacting for and arranging for pilotage, berthing and port handling;
2) Acting as an agent to endorse bills of lading and sign shipping contracts, and accept booking for shipping space;
3) Handling the customs formalities of ships, containers, and goods;
4) Contracting goods for shipping, organizing cargo, and handling the consignment and transshipment of goods and containers;
5) Collecting freight charges and handling settlements as an agent;
6) Organizing passenger sources and handling relevant ocean passenger transport;
7) Other relevant businesses.
International ship agency operators shall withhold and remit the taxes of the foreign international shipping operators for whom they act as an agent according to the relevant provisions of the State.
Article 30 International ship management operators may accept the entrustment of ship owners, ship renters, or ship operators to operate the following businesses:
1) Trading and leasing of ships and other management of ship assets;
2) Dealing with ship affairs, ocean affairs and arranging for maintenance;
3) Employing, training and equipping of ships’ crew;
4) Other services guaranteeing the technological state of the ships and normal sails.
Chapter 4 Special Provisions on Foreign-funded International Ocean Shipping and the Auxiliary Businesses Thereof
Article 31 The provisions shall be applicable to the foreign businessmen investing in and operating international ocean shipping and the relevant auxiliary businesses related to international ocean shipping within the territory of China; where the matters are not prescribed in this Chapter, the other relevant provisions of these Regulations shall be applicable.
Article 32 Upon the approval of the department in charge of transportation under the State Council, foreign businessmen may, according to the relevant laws, regulations and other relevant provisions of the State, invest to establish Chinese-foreign joint venture enterprises or Chinese-foreign contractual operative enterprises to operate businesses of international shipping, international ship agency, international ship management, port handling of international ocean shipping, goods storage of international ocean shipping, container station and stacking of international ocean shipping; and may invest to establish foreign-funded enterprises to operate goods storage of international ocean shipping.
For a Chinese-foreign joint venture enterprise engaged in international shipping or international ship agency, the proportion of investment contributed by the foreign party in the enterprise may not exceed 49
For a Chinese-foreign contractual cooperative enterprise engaged in international shipping or international ship agency, the provisions of the preceding paragraph shall be applicable in analogy to the proportion of investment of the foreign party in the enterprise.
The chairman of the board of directors and the general manager of a Chinese-foreign joint venture international shipping enterprise or a Chinese-foreign contractual cooperative international shipping enterprise shall be appointed by the Chinese party after negotiation of the two parties to the Chinese-foreign joint venture or contractual cooperative venture.
Article 33 Upon the approval of the department in charge of transportation under the State Council, foreign businessmen may, according to the relevant laws and regulations and other relevant provisions of the State, invest to establish Chinese-foreign joint venture enterprises, Chinese-foreign contractual cooperative enterprises and foreign-funded enterprises to provide the daily services such as contracting goods for shipping, acting as an agent to endorse bills of lading, settling freight charges, signing service contracts, etc. for the ships they own or operate; where no Chinese-foreign joint venture enterprise, Chinese-foreign contractual cooperative enterprise or foreign-funded enterprise has been set up within the territory of China, the aforesaid businesses shall be entrusted to the international ship agency operators in China.
Article 34 Foreign international shipping operators and foreign international shipping auxiliary enterprises may, upon the approval of the department in charge of transportation under the State Council, set up residential representative offices within the territory of China.
The residential representative offices set up within the territory of China by foreign international shipping operators and foreign international shipping auxiliary enterprises may not engage in business operations.
Chapter 5 Investigation and Treatment
Article 35 The department in charge of transportation under the State Council may, based on the request of the interested persons or its own decision, conduct investigations with respect to the following situations:
1) The liner conference agreement, operation agreement, or freight rate agreement, etc. signed between the international shipping operators engaged in international liner shipping may impair fair competition;
2) For various kinds of associations generated through the agreements signed by the international shipping operators engaged in international liner shipping, the shipping share of a sea route involving Chinese ports has continuously exceeded 3021044734f the shipping volume of that sea route for a year, and may impair fair competition.
3) Any action as prescribed in Article 27 of these Regulations;
4) Other actions that may impair fair competition on the international ocean shipping market.
Article 36 The department in charge of transportation under the State Council shall conduct the investigations jointly with the department of industry and commerce administration and the department of price under the State Council (hereinafter referred to as the investigation departments).
Article 37 The investigation departments shall form investigation teams when conducting investigations. There shall be no less than 3 members in an investigation team. And the investigation teams may retain the relevant experts to participate in the work.
Before conducting the investigation, the investigation team shall inform the person under investigation of the purpose, reasons, and period of the investigation and other matters. The investigation period may not exceed 1 year; and may be extended for half a year upon the approval of the investigation departments if necessary.
Article 38 When conducting investigations, the investigation personnel may ask the person under investigation and the units and individuals having business relations with him about the relevant information, and may consult and copy the relevant materials such as the relevant documents, agreements, contracts, account books, business letters and electronic data, etc.
When conducting investigations, the investigation personnel shall keep confidential the business secrets of the person under investigation and the units and individuals having business relations with him.
Article 39 The person under investigation shall accept the investigation, provide the relevant information and materials according to facts, and may not refuse the investigation or conceal the truth or give false information.
Article 40 After an investigation ends, the investigation departments shall make the investigation conclusion, and notify the person under investigation and the interested persons in written form.
With respect to those impairing fair competition, the investigation departments may take prohibitive and restrictive measures such as ordering the amending of relevant agreements, restricting the number of scheduled flights of a liner, suspending the rate books or the acceptance of record of freight rates, and ordering regular submission of relevant materials, etc.
Article 41 Before making the decision to take prohibitive or restrictive measures, the investigation departments shall inform the parties concerned of their rights to require the holding of hearings; a hearing shall be held if the parties concerned require so.
Chapter 6 Legal Responsibilities
Article 42 If any party operates an international shipping business without obtaining the International Shipping License, the party shall be ordered to stop the business operations by the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government; if there exist illegal gains they shall be confiscated; if the illegal gains are not less than 500,000 Yuan, a fine of not less than 2 times but not more than 5 times of the illegal gains shall be imposed; if there are no illegal gains or the illegal gains are less than 500,000 Yuan, a fine of not less than 200,000 Yuan but not more than 1,000,000 Yuan shall be imposed.
Article 43 If any party operates the non-vessel shipping business without making the registration of bill of lading and paying the security deposit, he shall be ordered to stop the business operations by the department in charge of transportation under the State Council or the department in charge of transportation under the local people’s government authorized by it; if there exist illegal gains they shall be confiscated; if the illegal gains are not less than 100,000 Yuan, a fine of not less than 2 times but not more than 5 times of the illegal gains shall be imposed; if there are no illegal gains or the illegal gains are less than 100,000 Yuan, a fine of not less than 50,000 Yuan but not more than 200,000 Yuan shall be imposed.
Article 44 If any party operates the international ship agency business or the international ship management business without going through the registration procedures, the party shall be ordered to stop the business operations by the department in charge of transportation under the State Council or the department in charge of transportation under local people’s government authorized by it; if there exist illegal gains they shall be confiscated; if the illegal gains are not less than 50,000 Yuan, a fine of not less than 2 times but not more than 5 times of the illegal gains shall be imposed; if there are no illegal gains or the illegal gains are less than 50,000 Yuan, a fine of not less than 20,000 Yuan but not more than 100,000 Yuan shall be imposed.
Article 45 If any foreign international shipping operator operates the shipping business between Chinese ports, or operates the shipping business between Chinese ports in forms such as using the rented Chinese ships and shipping space, and exchanging the shipping space, etc., he shall be ordered to stop the business operations by the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government; if there exist illegal gains they shall be confiscated; if the illegal gains are not less than 500,000 Yuan, a fine of not less than 2 times but not more than 5 times of the illegal gains shall be imposed; if there are no illegal gains or the illegal gains are less than 500,000 Yuan, a fine of not less than 200,000 Yuan but not more than 1,000,000 Yuan shall be imposed. If the operator refuses to stop the business operations, the operator will be rejected from entering the port; and the operator’s qualification for international liner shipping shall be cancelled if the circumstances are serious.
Article 46 If any party operates the international liner shipping business without obtaining the operation qualification for international liner shipping, the party shall be ordered to stop the business operations by the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government; if there exist illegal gains they shall be confiscated; if the illegal gains are not less than 500,000 Yuan, a fine of not less than 2 times but not more than 5 times of the illegal gains shall be imposed; if there are no illegal gains or the illegal gains are less than 500,000 Yuan, a fine of not less than 200,000 Yuan but not more than 1,000,000 Yuan shall be imposed. Those refusing to stop the business operations shall be rejected from utilizing the port.
Article 47 If any international shipping operator, non-vessel shipping operator, international ship agency operator or international ship management operator provides his operation qualification obtained according to law for others to use, he shall be ordered to correct the acts within a limited period by the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government; if the operator fails to correct his acts within the limited period, the operator’s qualification for international liner shipping shall be cancelled.
Article 48 If a party fails to go through the procedures for record as prescribed in these Regulations, he shall be ordered to complete the procedures as prescribed in these Regulations for record within a limited period by the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government authorized by it; anyone failing to make up the procedures within the limited period shall be fined no less than 10,000 Yuan but no more than 50,000 Yuan, and the party’s corresponding qualifications shall be cancelled.
Article 49 If any party fails to go through the procedures for record of freight rate as prescribed in these Regulations or fails to carry out the recorded freight rate, the party shall be ordered to correct its acts within a limited period by the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government, and be imposed on a fine of not less than 20,000 Yuan but not more than 100,000 Yuan.
Article 50 If any party shall be given administrative punishment according to the investigative conclusion or has committed any of the violations of law listed in Article 27 of these Regulations, he shall be given punishment by the department in charge of transportation, the department in charge of price or the department of industry and commerce administration according to the provisions of relevant laws and regulations.
Article 51 If any international shipping operator agrees upon negotiated freight rate with the non-vessel shipping operator who fails to make the registration of bill of lading and pay the security deposit, he shall be given a warning by the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government, and be fined no less than 20,000 Yuan but no more than 100,000 Yuan.
Article 52 If any foreign international shipping operator or foreign international ocean shipping auxiliary enterprise establishes a residential representative office without the approval of the department in charge of transportation under the State Council, it shall be ordered to correct its acts by the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government, and be fined no less than 20,000 Yuan but no more than 100,000 Yuan.
If the residential representative office of a foreign international shipping operator or foreign international ocean shipping auxiliary enterprise engages in business operations, it shall be ordered to stop the business operations by the department of industry and commerce administration and punished according to law.
Article 53 If any party refuses the investigation conducted by the investigation departments and their functionary according to law, or conceals the relevant information or materials or gives false information, the party shall be ordered to correct its acts by the department in charge of transportation under the State Council or the department in charge of transportation under local people’s government authorized by it, and be fined no less than 20,000 Yuan but no more than 100,000 Yuan.
Article 54 If any party illegally engages in the business operations of international ocean shipping into and out of Chinese ports and the auxiliary business operations related to international ocean shipping, and disturbs the order of the international ocean shipping market, the party shall be investigated for criminal responsibilities according to the provisions of the Criminal Law on the crimes of illegal business operations.
Article 55 If any working personnel of the department in charge of transportation under the State Council or the department in charge of transportation under the relevant local people’s government has conducted any of the following actions, caused serious consequences and violated the criminal laws, he shall be investigated for criminal responsibilities according to the provisions of the Criminal Law on the crime of abusing powers, neglecting duties or other crimes; if the case is not serious enough to be subject to criminal penalties, administrative punishments shall be given according to law:
1) Failing to make examination and approval of, to license, to register or to put on record the applicants who meet the conditions as prescribed in these Regulations, or making examination and approval of, licensing, registering or putting on record the applicants who do not meet the conditions as prescribed in these Regulations;
2) Failing to supervise and administer the international shipping operators, non-vessel shipping operators, international ship agency operators and international ship management operators that have been examined and approved, licensed, registered and put on record, or failing to cancel the operation qualification of the operator who has been found to no longer meet the conditions as prescribed in these Regulations, or failing to investigate and punish the operator who has been found to have committed violations of law.
3) Failing to immediately ban the business operations of international ocean shipping and the auxiliary business operations related to international ocean shipping, which have been found in the supervision and inspection, conducted by the units and individuals that have not gone through the procedures for examination and approval, license, registration, and recording according to law, or failing to deal with the cases according to law after receiving reports.
Chapter 7 Supplementary Provisions
Article 56 These Regulations shall be applicable in analogy to the international ocean shipping businesses and auxiliary businesses related to international ocean shipping operated in the Chinese mainland with investment of the investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan area.
Article 57 Without approval of the department in charge of transportation under the State Council, foreign international shipping operators may not operate the shipping business between Chinese mainland and Hong Kong Special Administrative Region or Macao Special Administrative Region, may not operate the shipping businesses between Chinese mainland and Taiwan through direct two-way sailing or passing a third place.
Article 58 The administration measures governing the ocean shipping between Chinese mainland the Hong Kong Special Administrative Region or Macao Special Administrative Region shall be formulated by the department in charge of transportation under the State Council according to these Regulations.
The ocean shipping between Chinese mainland and Taiwan area shall be in accordance with the relevant provisions of the State.
Article 59 Where any country or region adopts discriminatory, prohibitive, restrictive, or other similar measures against the international ocean shipping operators, ships or ship crew of the People’s Republic of China, the Government of the People’ s Republic of China shall take the corresponding measures based on the principle of reciprocity.
Article 60 Those that have already engaged in the business operations of international ocean shipping and the auxiliary business operations related to international ocean shipping shall make up the relevant procedures within 60 days from the day of promulgation of these Regulations according to the provisions of these Regulations.
Article 61 These Regulations shall come into force on Jan. 1, 2002. The Provisions of the People’s Republic of China on the Administration of International Ocean Shipping of Containers promulgated by the State Council on Dec.5, 1990, amended and promulgated by the State Council on April 18, 1998 shall be abolished simultaneously.
