Laws of the People's Republic of China

   Article 2 The international seaborne container transshipment as defined in the present Provisions refers to the business activities of transshipping, loading and unloading of containers and their cargoes that are loaded onto the vessels starting shipment from outside the mainland, are transferred to the vessels engaged in international shipping at the Shanghai port, and then shipped to the designated port of a third country or region.

   Article 3 The present Provisions are applicable to business activities of international seaborne container transshipment and their related agency activities at the Shanghai port.

   Article 4 The Administrative Committee of the Shanghai Port shall be responsible for the organization and coordination of the international seaborne container transshipment at the Shanghai port, and the office of the Administrative Committee of the Shanghai Port shall take charge of the related specific work.

The Communications Office of the Shanghai People's Government (hereinafter referred to as the "Municipal Communications Office") is responsible for the administration of international seaborne container transshipment at the Shanghai port.

The Shanghai Customs and the Shanghai Harbor Superintendency Administration are responsible for the supervision and administration of international seaborne container transshipment at Shanghai port in accordance with the relevant provisions of the State and their respective duties.

   Article 5 The following enterprises may be engaged in the business activities of international seaborne container transshipment at the Shanghai port:

1. International maritime shipping companies qualified for international container shipment at the Shanghai port (hereinafter referred to as "marine carriers")

2. Port enterprises qualified for port business activities involving international container shipment and possessing the site, facilities and personnel that meet the requirements set by the Shanghai Customs and the Shanghai Harbor Superintendency Administration regarding supervision and administration (hereinafter referred to as "port business operators").

3. Domestic waterway and road transportation enterprises qualified for international container shipment at the Shanghai port (hereinafter referred to as "port area short-distance carriers").

Agencies qualified to act for international vessels at the Shanghai port (hereinafter referred to as "shipping agents") may undertake international seaborne container transshipment by authorization of marine carriers.

   Article 6 To be engaged in international container transshipment business at the Shanghai port, marine carriers from China's Special Administrative Region of Hong Kong, the regions of Macao and Taiwan, or foreign countries shall authorize, in accordance with the regulations, shipping agents who are, qualified to act for vessels of both Chinese and foreign nationalities.

   Article 7 Enterprises that meet the requirements as specified in Article 5 of the present Provisions and are to be engaged in international seaborne container transshipment shall apply for registration according to the following procedures:

1. Marine carriers and shipping agents shall go to the Municipal Communications Office and the Administrative Committee of the Shanghai Port with required written documents for registration, and then go to the Shanghai Customs to complete the formalities of filing for the record.

2. Port business operators shall submit a written application together with the relevant documents verified and issued by the competent administrative departments of communications, to the Shanghai Customs (and also to the Shanghai Harbor Superintendency Administration if they are to be engaged in the transshipment of dangerous goods). The Shanghai Customs and the Shanghai Harbor Superintendency Administration shall issue, after examination and verification in accordance with the requirements of supervision and administration, an approval document within fifteen days to those that meet the requirements, Duplicated copies of the approval document shall be sent to the Municipal Communications Office and the Office of the Administrative Committee of the Shanghai Port for the record.

(3) Port area short-distance carriers shall submit a written application to the Shanghai Customs, which shall issue a license after verification and approval of the specific means of transportation in accordance with the requirements of supervision and administration.

   Article 8 Containers and their cargoes for international transshipment shall leave this country within three months after declaration of entry of the shipping vessels. Relevant provisions shall apply if the three- month period is exceeded.

   Article 9 The following goods are prohibited from transshipping:

1. Goods coming from or being shipped to countries or regions with which China has suspended trade;

2. Goods prohibited by China's laws and regulations from entering or leaving the country;

3. Goods prohibited from being transported by international conventions of which China is a signatory or member, or by international practices accepted by China.

   Article 10 Shipping agents and port business operators engaged in international seaborne container transshipment shall not provide services such as agency, loading, unloading, or storage for enterprises not qualified to be engaged in international container shipment.

   Article 11 Port business operators engaged in international seaborne container transshipment shall, in the light of the actual conditions of the dock, strictly obey the rules of operation for international container transshipment and ensure that the said transshipment be given priority.

   Article 12 Shanghai agents for entering vessels shall in accordance with the relevant regulations, declare their entry to the responsible supervision and administration departments after they have docked, and, together with shipping agents for leaving vessels, ensure dovetailed operation of international transshipment containers with regard to entry and departure.

   Article 13 The entry, departure and storage of international transshipment containers shall, in accordance with the regulations, be subject to the supervision and administration of the Shanghai Customs, and when dangerous goods are involved, shall also be subject to the supervision and administration of the Shanghai Harbor Superintendency Administration.

   Article 14 The Shanghai Customs and the Shanghai Harbor Superinteendency Administration shall ensure continuous service either on weekdays or on holidays as required by transshipment business. Meanwhile, they shall simplify the procedures of inspection and clearance to give timely inspection and clearance to international transshipment containers and their cargoes.

   Article 15 Inspection and clearance of international transshipment containers that may be hazardous to the port shall be carried out by the Shanghai Customs and the Shanghai Harbor Superintendency Administration in accordance with their respective functions of supervision and administration and in accordance with the procedures stipulated by law.

   Article 16 Port business operators engaged in international seaborne container transshipment at the Shanghai port shall report, before the fifth of each month, the entry, departure, and storage of international transshipment containers during the previous month to the Shanghai Customs, and duplicated copies of the report shall be submitted to the Municipal Communications Office, and, also to the Shanghai Harbor Superintendency Administration when dangerous goods are involved.

   Article 17 With respect to the fees charged, international seaborne container transshipment at the Shanghai port shall be given preferential treatment in accordance with the relevant regulations of the State and the Shanghai Municipality. A unified standard of the items and rates of fees shall be made public by the Shanghai Port Authority.

   Article 18 Enterprises engaged in international seaborne container transshipment and relevant departments of supervision and administration shall adopt the advanced computer network technology, and transmit timely, accurately and completely, the dynamic information datum of the containers, to ensure the high operational efficiency of international seaborne container transshipment.

Department and enterprises with the right conditions shall, within the overall planning and under the guidance of the Municipal Information Port office, speed up the work of adopting Electronic Data Interchange (EDI) technology to raise the level of the administration of international seaborne container transshipment at the Shanghai port.

   Article 19 Specific matters concerning the supervision and administration of international seaborne container transshipment at the Shanghai port shall be dealt with in accordance with the relevant provisions of the of the Shanghai Customs and of the Shanghai Harbor Superintendency Administration.

   Article 20 The Municipal Communications Office shall be responsible for the interpretation of the present Provisions.

   Article 21 The present Provisions shall be implemented on a trial basis on September 1,1997.