Laws of the People's Republic of China

The Ministry of Communications

Circular of the Ministry of Communications on Strengthening the Administration of Tramp Ship Transport Across Taiwan Strait

JiaoShuiFa [2002] No.552

November 26, 2002

The communications departments (bureaus, commissions) and maritime bureaus of the provinces, autonomous regions and municipalities directly under the Central Government, the bureaus (commissions) of communications and maritime bureaus of the municipalities separately listed on the State plan, and the harbor bureaus, harbor group corporations and maritime bureaus of the open ports:

In accordance with the Measures for the Administration of Shipping Across Taiwan Strait promulgated by the Ministry of Communications in August of 1996 and the Regulations of the People's Republic of China on International Shipping promulgated by the State Council in December of 2001, no enterprise or ship may, without the approval of the communications authority under the State Council, operate water transport straight from China's mainland to Taiwan area or vice versa, or through a third place.

During the recent years, the Ministry of Communications have effectively administered the across-strait liner transport, which is in good order and provides effective and reliable transport services for the across-strait trade. Recently it has been found that some ship companies engaging in tramp ship transport across Taiwan Strait hasn't implemented the aforesaid provisions, especially a small number of foreign ship companies operate across-strait transport business without approval, and thus seriously violate the policies and provisions on across-strait transport.

In order to strictly execute the regulations and to promote the realization of complete and straight navigation across Taiwan Strait, the administration of across-strait tramp ship transport must be strengthened, all the ship companies engaging in across-strait transport shall go through the examination and approval procedures with the Ministry of Communications pursuant to the provisions as soon as possible. From the day of promulgation of this Circular to December 31, 2002, For the across-strait goods transport contracts that have been signed, and the goods concerned must be transported within this year, the mainland ship companies shall file applications directly with the Ministry of Communications according to the procedures for submitting separate applications for approval; the ship companies of Taiwan, Hong Kong and Macao areas shall file applications directly with the Ministry of Communications through their mainland ship agencies with the power of ship agency for foreign trade transport; if it is really necessary, foreign ship companies may also file applications directly with the Ministry of Communications through the aforesaid ship agencies in China's mainland. The Ministry of Communications will examine and approve the aforesaid applications on a separate basis. The following materials shall be provided for the application: Written application (including goods to be transported, calling port, beginning and end time), business license (copy) and ship materials (including ship classification, nationality of ship, and ship ownership certificate etc). For across-strait tramp ship transport by time charter or bareboat charter, copy of the charter contract or corresponding documents shall also be provided.

To apply for undertaking across-strait tramp ship transport after January 1, 2003, the applicant shall be a ship company registered in China's mainland with the qualification for foreign trade transport; or a ship company registered in Hong Kong, Macao that is the asset of permanent residents of Hong Kong or Macao, or of residents of China's mainland or Taiwan area; or a ship company registered in Taiwan area. Among them, the mainland ship company shall be a direct applicant, the ship company of Hong Kong, Macao or Taiwan shall entrust its ship agency in China's mainland that has the power of ship agency for foreign trade transport to file the application on its behalf. The aforesaid ship companies shall use the ships provided for in the Measures for Administration of Shipping Across Taiwan Strait to undertake tramp ship transport, no ships of foreign companies may be used except for special needs.

The application process shall follow the relevant provisions of the Measures for Administration of Shipping Across Taiwan Strait (Decree [1996] No. 6 of the Ministry of Communications of the People' s Republic of China) and the Circular on Relevant Issues Concerning Implementation of the Measures for Administration of Shipping Across Taiwan Strait (JiaoShuiFa [1996] No.941), and the application shall be examined by the communications authority of the province, autonomous region or municipality directly under the Central Government of the place where the applicant or the applicant's agent is located before being transmitted to the Ministry of Communications for examination and approval. The Ministry of Communications shall make the decision on whether to approve or not within 45 days from receiving the full set of application materials examined and transmitted, and shall send a copy of the decision opinions to the communications authority of the province, autonomous region or municipality directly under the Central Government that made the examination.

The application materials shall include: written application, sample of the ocean bill of lading used by the applicant ship company, credit certifications of the applicant ship company, business license (copy) and ship materials (including ship classification, nationality of ship, and ship ownership certificate etc); for across-strait tramp ship transport by time charter or bareboat charter, copy of the charter contract or corresponding documents shall also be provided.

The Ministry of Communications shall issue the License for Waterway Transport Across Taiwan Strait and the Certificate of Ship Operation Across Taiwan Strait to the ship companies that have been approved to operate tramp ship transport across Taiwan Strait. The valid term of the license and certificate is 3 years. For continuous operation of tramp ship transport across Taiwan Strait after the expiration of the valid term, the relevant ship company shall file a written application pursuant to the aforesaid application procedures 40 days earlier. If there are new provisions after the actual straight navigation across Taiwan Strait is realized, such new provisions shall be observed.

From January 1, 2003, the relevant departments of the ports shall make strict inspections, and shall seriously deal with the ship companies that undertake across-strait transport without the License for Waterway Transport Across Taiwan Strait and the Certificate For Ship Operation Across Taiwan Strait.