Notification on Further Strengthening Supervision of International Maritime Market

No.4 of 2008

Since implementation of Regulations of The People’s Republic of China on International Ocean Shipping (hereinafter referred to as Regulations on International Ocean Shipping), administrative department of transport has standardized order of international maritime market based on law and made proactive achievements. Recently, the Ministry of Transport found during supervision of international liner transport and non-vessel shipping market that a few number of foreign international liner shipping operators were still carrying out international liner transport business at Chinese port when business qualifications were invalid; some enterprises ran non-vessel shipping business without business qualification for it. They violated prescription of Regulations on International Ocean Shipping, severely disturbed market order and impaired legal right of related party. The Ministry of Transport searched out these violators and executed administrative penalty according to Regulations on Ocean Shipping. Moreover, business qualifications of 19 international liner shipping operators on international liner shipping business were written off when these enterprises were found actually ended their businesses but not yet gone through writing off formality of business qualification. In order to further standardize international ocean shipping activity, protect fair competition, maintain market order of international ocean shipping and guarantee legal rights of various parties, the related issues are hereby announced:
Ⅰ.According to article 16 of Regulations on International Ocean Shipping, international liner shipping operator that runs business in and out of Chinese port needs to apply to the Ministry of Transport for business qualification. The international liner shipping operator needs to strictly fulfill recording obligation of liner route, operational ship, liner conference agreement, operation agreement and freight rate agreement as prescribed in Regulations on International Ocean Shipping, and apply to the Ministry of Transport for extension formality 30 days ahead of maturity of the term of International Liner Shipping Qualification Registration Certificate. If they don’t go through extension formality but continue running the business, they will be punished according to article 46 of Regulations on International Ocean Shipping. No international ship agency can provide service for international liner shipping business operator with no or lost business qualification.
Ⅱ.As prescribed in article 7 of Regulations on International Ocean Shipping, non-vessel shipping operator should apply to the Ministry of Transport for registration of bill of lading and pay security. Each international liner shipping operator should strictly follow prescription of Regulations on International Ocean Shipping as well as its implementation details. They should confirm the non-vessel shipping operator having business qualification while signing agreed freight rate with so operator. International liner shipping operator should neither sign agreed freight price with non-vessel shipping operator without business qualification, nor accept goods or container provided by so operator. Such behavior of international liner shipping operator as violating prescription to sign agreed freight rate with non-vessel shipping operator without business qualification will be punished according to article 51 of Regulations on International Ocean Shipping.
Ⅲ.Administrative department of transport at provincial, district or municipal level (port and waterway administrative department) should continue to strengthen supervision of local international ocean market, enhance inspection on site, and ask enterprises, which violate Regulations on International Ocean Shipping, to rectify within a specific period and submit report to the Ministry of Transport.
Hereby notified.
Attachment: Name List of Illegal International Ocean Shipping Operator Found by the Ministry of Transport Recently (omitted)

Ministry of Transport of the People’s Republic of China
Jun.23, 2008