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PROVISIONS ON THE ADMINISTRATION OF MARITIME INTERNATIONAL CONTAINER TRANSPORT

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1990-12-05 Effective Date  1990-12-05  

Provisions of the People's Republic of China on the Administration of Maritime International Container Transport



Chapter I  General Provisions
Chapter II  Procedures for the Examination and Approval of Applications
Chapter III  Management of Freight Transportation
Chapter IV  Hand-Over Procedures and Responsibilities
Chapter V  Provisions on Penalties
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 68 of the State Council of the People's

Republic of China on December 5, 1990, and effective as of the date of
promulgation)(Editor's Note: For the revised text, see the Decision of the
State Council Regarding Amending the Provisions of the People's Republic of
China on the Administration of Maritime International Container Transport
promulgated on April 18, 1998)
Chapter I  General Provisions

    Article 1  These Provisions are formulated in order to strengthen the
administration of maritime international container transport, to clearly
define the responsibilities of the various parties concerned, and to meet
the State's needs in handling foreign trade.

    Article 2  These Provisions shall apply to those enterprises that are
established within the territory of the People's Republic of China for the
handling of maritime international container transport, and also to units
and individuals that are involved in the operations of maritime international
container transport.

    Article 3  The Ministry of Communications of the People's Republic of
China shall be responsible for the administration of the operations of
maritime international container transport throughout the country.

    Article 4  In conducting maritime international container transport, the
principles of safety, accuracy, speed, economy, and civilized services must
be followed and door-to-door transportation shall be actively developed.
Chapter II  Procedures for the Examination and Approval of Applications
for the Establishment of Enterprises That Handle Maritime International
Container Transport

    Article 5  "Enterprises for the operations of maritime international
container transport" refers to those shipping enterprises that are engaged in
maritime international container transport, and also to those enterprises
that are engaged in port handling, with their inland transshipment stations
and freight stations that undertake maritime international container
transport.

    Article 6  The applications for the establishment of enterprises that
are engaged in the operations of maritime international container transport
shall be submitted to the competent departments for communications of the
provinces, autonomous regions, or municipalities directly under the Central
Government for examination and verification, and then to the Ministry of
Communications for examination and approval.

    Article 7  The applications for the establishment of enterprises that
are engaged in port handling of international containers shall be submitted
to the competent departments for communications of the provinces, autonomous
regions, or municipalities directly under the Central Government for
examination and approval, and then to the Ministry of Communications for the
record.

    After the promulgation of these Provisions, the applications for the
establishment of new inland transshipment stations and freight stations that
undertake the transport of maritime international containers shall be
submitted first to the competent department that has established the said
enterprise for examination, verification, and consent; and then to the
competent departments for communications of the provinces, autonomous
regions, or municipalities directly under the Central Government for
examination and approval; and finally to the Ministry of Communications for
the record.

    The procedures for the examination and approval of the applications for
the establishment of new transshipment stations and freight stations that
undertake the transport of maritime international containers shall be
formulated separately by the Ministry of Communications in conjunction with
the Ministry of Foreign Economic Relations and Trade.

    Article 8  The applications for the establishment of Chinese-foreign
equity joint ventures and Chinese-foreign contractual joint ventures that
handle maritime international container transport shall be submitted to the
Ministry of Communications for examination, verification, and consent; and
shall then, in accordance with the provisions of the pertinent laws and
regulations, be submitted to the Ministry of Foreign Economic Relations and
Trade for examination and approval.

    Article 9  The establishment of enterprises that are engaged in the
operations of maritime international container transport must satisfy the
following conditions;

    (1) to have transport vessels, transport motor vehicles, transport
equipment and other relevant facilities that correspond to theft scope of
business and to the needs of their customers;

    (2) to have the necessary organizational structure, site for setting up
their business office, and specialized administrative personnel;

    (3) to have the registered capital and their own working capital that
meets the requirements of their business operations;

    (4) to meet other conditions as stipulated by State laws, decrees and
regulations governing the establishment of enterprises.

    Article 10  The competent department for communications shall examine,
verify and approve the scope of business operations of the enterprises that
have applied for the permission to handle maritime international container
transport in light of their sources of funds, the conditions of equipment and
facilities, the standard of administration, and the sources of cargoes.

    Article 11  The competent department of communications shall issue the
approving documents to those enterprises, which have obtained the approval to
handle maritime international container transport. The units that have
received the approving documents shall apply and go through the registration
procedures by presenting the aforesaid approving documents to the
administrative department for industry and commerce, which shall issue the
business licences after checking and approving the enterprises' application;
and only then shall the enterprises be permitted to start business operations.

    Cases concerning the establishment of inland transshipment stations and
freight stations that undertake the transport of maritime international
containers shall also be submitted to the Customs for the completion of the
registration procedures.
Chapter III  Management of Freight Transportation

    Article 12  The containers used in maritime international container
transport shall conform to the provisions and technical standards of the
international organization for the standardization of containers, and also
to the provisions of the pertinent international containers convention.

    The owners and operators of containers shall do a good job in the
management and maintenance of containers and carry out regular inspections, in
order to guarantee the provision of containers that are suitable for the
transportation of cargoes.

    In case that the provisions in the second paragraph of this Article have
been violated, and, as a result, goods are damaged or short in number or
quantity, the person(s) who is (are) held responsible for this shall bear the
liability, for compensation in accordance with the pertinent provisions.

    Article 13  Shippers and enterprises that are engaged in port handling,
shall guarantee that the vessels, motor vehicles, handling machinery and
tools are kept in a good technical condition, thereby ensuring the
transportation and safety of containers.

    In case that shippers and enterprises that are engaged in port handling
have violated the provisions in the first paragraph of this Article, and, as
a result, goods are damaged or short in number or quantity, they shall bear
the liability for compensation in accordance with the pertinent provisions.

    Article 14  Shippers and enterprises that are engaged in port handling
shall use the container shipping documents.

    Article 15  Shippers may directly organize the contracting of the
transportation of container goods, and consignors may directly hold business
talks with shippers or commission shipping agents for the consignment of
import and export container goods.

    Article 16  Consignors shall submit an accurate report on the names of
goods, and their property, quantity, weight, and specifications. The goods
shipped by consignment in containers must conform to the requirements of
container transport, and marks on the goods should be obvious and clear.

    Article 17  Consignors or shippers shall, before vanning, carry out a
careful inspection of containers, and containers that might cause an adverse
effect on to the transportion and vanning of goods may not be used.

    Article 18  Containers which are used for shipping such perishables as
grains, edible oils, and frozen food, shall be inspected by the department for
commodity inspection and found to be up to the standard before they are used
for shipping.

    Article 19  As soon as container goods have reached their destination,
the shipper shall promptly send a cargo delivery notice to the consignee; and
the consignee shall, upon receiving the notice, take delivery of goods on the
strength of the bill of lading.

    In case that the consignee fails to clear the goods when the prescribed
time limit is overdue, or that the consignee fails to return the containers
according to the prescribed time limit, the said consignee shall be required
to pay in accordance with the pertinent stipulations or with the agreement
set forth in the contract, the demurrage charge for the extended use of
containers.

    Article 20  The freight charges for maritime international container
transport and other expenses shall be calculated and collected in accordance
with the State provisions concerning shipping charges and charge rates. In the
absence of State provisions, the freight charges shall be calculated and
collected in accordance with the prices agreed upon by both parties. No units
shall be permitted to collect charges at random.

    Article 21  Shippers and enterprises that are engaged in port handling,
shall submit periodical statistical statements on transportion to the
competent department for communications.

    Article 22  Various parties that are involved in maritime international
container transport shall, in good time, provide each other with information
concerning container transport.
Chapter IV  Hand-Over Procedures and Responsibilities

    Article 23  Shippers and consignors or consignees shall, in accordance
with the hand-over method stipulated, in the bill of lading, handle the
hand-over operations of containers and container goods at marshalling yards,
freight stations, or other places agreed upon by the two parties concerned.

    Article 24  Shippers and enterprises that are engaged in port handling,
which take part in maritime international container transport, shall handle
the hand-over operations in accordance with the following provisions:

    (1) maritime shippers shall handle the hand-over operations alongside
vessel through the tally companies and enterprises that are engaged in port
handling;

    (2) with respect to containers transported by waterways through nodal
points, the enterprises that engaged in port handling and waterway carriers
shall handle the hand-over operations alongside vessel;

    (3) with respect to containers transported by highways through nodal
points, the enterprises that engaged in port handling and highway carriers
shall handle the hand-over operations at the gate of the container terminal;

    (4) with respect to containers transported by railway through nodal
points, the enterprise that engaged in port handling or highway carriers and
railway carriers shall handle the hand-over operations at the site of handing.

    Article 25  While handling the hand-over operations of containers, the
two handling parties shall check the container numbers, the bodies of
containers and the containers' marking seals. The loaded containers shall be
handed over by their marking seals and by the condition of container body; and
the empty containers shall be handed over by condition of container body.

    After checking the container numbers, the bodies of containers and the
marking the two handling parties shall make a record and confirm it by
appending their signatures to the record.

    Article 26  With respect to the liabilities of shippers and enterprises
that are engaged in port handling for the damage and loss of containers and
container goods, before the hand-over operations, the liabilities shall be
taken up by the handing-over party; after the hand-over operations, the
liabilities shall be taken up by the receiving party. However, if, within 180
days immediately after the hand-over operations, the receiving party is able
to produce evidence to testify to the fact that the damage of the containers,
or the damage and loss of container goods, were caused by the handing-over
party, then the handing-over party shall take up the liabilities for
compensation, unless otherwise provided by law.

    Article 27  Unless otherwise provided by law, shippers and consignors
shall, in accordance with the following provisions, take up the liabilities
for the damage or loss of container goods:

    (1) With respect to those goods, the vanning of which is done by the
shippers, if the goods in the containers are damaged or are short in number
or quantity during the period of time from the day the shippers receive the
goods to the day when the goods reach their destination but before they are
handed over to the consignees, the shippers shall take up the liabilities for
the damage or shortage.

    (2) With respect to those goods, the vanning of which is done by the
consignors, if the container bodies and the marking seals have remained intact
but the goods (in the containers) have been damaged or are short in number or
quantity during the period of time from the completion or the vanning and the
completion of the procedures for consignment to the day before the containers
are handed over to the consignees, the consignors shall take up the liabilities
for the damage or shortage; if the container bodies are damaged or the marking
seals broken, and the goods in the containers are also damaged or are short
in number or quantity, the shippers shall take up the liabilities for the
damage or shortage.

    The time limits for shippers and consigness or consignees to raise
claims of compensation shall be limited to no more than 180 days, beginning
from the day when container goods are handed over, unless otherwise provided
by law.

    Article 28  In case that the consignors' inaccurate or false declaration
on container goods has resulted in injuries and death of personnel, or in the
loss of means of transport of the goods proper and the containers, or of other
goods, the consignors shall bear the liabilities for the consequences
arising therefrom.

    Article 29  In case that the fault of the person in charge of the vanning
has resulted in injuries and death of personnel, or in the loss of means of
transport, of other goods, or containers, the aforesaid person shall bear the
liabilities for the consequences arising therefrom.

    Article 30  In case that the damage or shortage in number or quantity
of container goods involves a claim for compensation from a foreign unit,
which necessitates an appraisal and the issue of the relevant certificate by
the administrative department for commodity inspection, the case shall be
handled in accordance with the provisions in the Law of the People's Republic
of China on the Inspection of Import and Export Commodities. In case that the
shortage in number or quantity of containers or container goods involves a
claim for compensation from a foreign unit, which necessitates the issue of
the relevant certificate by the tally department, the case shall be handled in
accordance with the pertinent provisions.
Chapter V  Provisions on Penalties

    Article 31  With respect to those who are engaged in container transport
business without a business licence for handling transport business, the
competent department for communications shall order them to cease business
operations, and penalties shall be imposed on them by the administrative
department for industry and commerce.

    Article 32  With respect to those who have received shipping charges in
violation of these Provisions and the relevant laws and regulations of the
State on commodity prices, they shall be penalized by the department for the
control of commodity prides.

    Article 33  With respect to those who have violated the administration
of transport documents, they shall be given an administrative warning or a
pecuniary penalty by the competent department for communications in light of
the seriousness of the cases.

    Article 34  With respect to those who have disturbed the normal order of
transportation or have expanded their scope of business without authorization,
they shall be ordered by the competent department for communications to carry
out rectification of their business, and shall be penalized by the
administrative department for industry and commerce.

    Article 35  In the event that the person concerned does not accept the
decision on penalties, he/she may, within 15 days as of the first day after
the receipt of the notice of the decision on penalties, appeal to the
competent department immediately above the punishing department for
reconsideration of the aforesaid decision on penalties. The competent
department that has received the appeal for reconsideration shall, within
30 days (after receiving the appeal), make the decision on reconsideration.
If the person concerned still does not accept the decision of the
reconsideration, he/she may within 15 days immediately after receiving the
decision on reconsideration, bring a suit before a people's court. If the
person concerned neither appeal for reconsideration, nor bring a suit before
the people's court, nor execute the decision on penalties or the decision of
the reconsideration within the prescribed period of time, the department that
has made the decision on penalties may apply to the people's court for
enforcement.
Chapter VI  Supplementary Provisions

    Article 36  The right to interpret these Provisions resides in the
Ministry of Communications.

    The Ministry of Communications may formulate the rules for implementation
in accordance with these Provisions.

    Article 37  These Provisions shall go into effect as of the date of
promulgation.



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