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REGULATIONS FOR THE ADMINISTRATION OF WATER TRANSPORT

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1987-05-12 Effective Date  1987-10-01  

Regulations of the People's Republic of China for the Administration of Water Transport



Chapter I  General Provisions
Chapter II  Administration of Profit-Making Water Transport
Chapter III  Penalty Provisions
Chapter IV  Supplementary Provisions

(Promulgated by the State Council on May 12, 1987 and amended in

accordance with the Decision of the State Council on Amending the Regulations
of the People's Republic of China for the Administration of Water Transport,
promulgated on December 3, 1997) (Editor's Note: For the revision, see
Decision of the State Council on Amending the Regulations of the People's
Republic of China for the Administration of Water Transport promulgated on
December 3, 1997, and effective as of the same date)
Chapter I  General Provisions

    Article 1  These Regulations are formulated with a view to improving
administration of water transport, maintaining transportation order, and
raising transportation efficiency.

    Article 2  These Regulations shall apply to all units and individuals
that are engaged in water transport and the related services in the coastal
waters, rivers, lakes and other navigable waters in the People's Republic of
China.

    Article 3  Water transport is categorized into profit-making transport
and non-profit-making transport.

    The term of profit-making transport refers to passenger transport
(including tourist transport, the same hereafter) and freight transport which
serve the society and involve settling accounts of fees.

    The term of non-profit-making transport refers to transport which serves
the units and individuals themselves and does not involve settling accounts of
fees.

    Article 4  The Ministry of Communications shall be the competent
department responsible for water transport throughout the country. Local
competent departments for communications shall be responsible for the water
transport in their respective regions.

    Local competent departments for communications may set up administrative
agencies for water transport according to actual conditions of water transport
administration.

    Article 5  The principle of multiple operation and management of water
transport by various regions, trades and departments shall be implemented
under the guidance of state plans. Legitimate competition shall be protected
and illegal operation checked.

    Article 6  The units and individuals who are engaged in water transport
and the related services must observe the relevant laws and regulations of
the state as well as the rules concerning water transport promulgated by the
Ministry of Communications.

    Article 7  Before permission is obtained from the Ministry of
Communications of the People's Republic of China, foreign-capital enterprises,
Chinese-foreign equity joint ventures and Chinese-foreign contractual joint
ventures shall not engage in the operation and management of water transport
in the coastal waters, rivers, lakes and other navigable waters in the
People's Republic of China.
Chapter II  Administration of Profit-Making Water Transport

    Article 8  The establishment of water transport enterprises and
enterprises for the related services and the engagement in profit-making water
transport by units and individuals other than water transport enterprises
shall be examined and approved by the competent departments for communications
according to the relevant provisions of these Regulations, and based on the
overall balancing conditions of the society's transportation capacity and
freight volume. The procedures of examination and approval shall be stipulated
by the Ministry of Communications.

    The measures for examining and approving non-profit-making transport by
boats and ships which are likely to have a fairly great bearing on the
administration of water transport shall be separately formulated by the
Ministry of Communications in conjunction with the departments concerned.

    Article 9  Water transport enterprises must meet the following
requirements:

    (1) possessing transport vessels compatible with their scope of business;

    (2) possessing relatively stable source of customers or freight;

    (3) having along the shipping lines for their passenger ships or boats
regular ports (stations) of call with corresponding service facilities, as is
required of passenger-transporters;

    (4) having structural institutions and persons in charge of management;

    (5) possessing their own circulating capital compatible with their
transport business.

    Article 10  To establish water transport service enterprises, it is
necessary to meet the requirement provided for in the fourth paragraph,
Article 9 and possess their own circulating capital compatible with water
transport services.

    Article 11  Units and individuals other than water transport enterprises
that want to engage in profit-making transport must meet the requirements
provided for in the first, second, third and fifth paragraphs of Article 9 and
have definite persons in charge of the work.

    Article 12  Competent departments for communications shall examine and
approve the scope of business of water transport enterprises and other units
and individuals engaged in profit-making transport according to their level of
management, transport capacity and source of customers and freight.

    Article 13  Competent departments for communications shall issue transport
licences to the approved water transport enterprises and other units and
individuals engaged in profit-making transport and shall issue transport
service licences to the approved water transport service enterprises.

    Article 14  The units and individuals that have obtained transport
licences and transport service licences shall apply on the strength of the
licences to the local administrative departments for industry and commerce
for business registration. They may start business only after the applications
have been checked and approved and the business licences issued.

    Article 15  Water transport enterprises, water transport service
enterprises and other units and individuals engaged in profit-making
transport that want to wind up their businesses, shall go through the
necessary formalities at the competent departments for communications and the
administrative departments for industry and commerce.

    Article 16  The Ministry of Communications and the competent departments
for communications of the provinces, autonomous regions and municipalities
directly under the Central Government shall be responsible for the overall
balancing of water transport plans at their respective levels.

    The Ministry of Communications shall, according to state plans, organize
overall balancing of national transport plans for those important materials,
through transport materials and foreign trade materials for which overall
balancing need be conducted. If the plans concern trans-provinces water
transport along the main waterways of the river systems of the Yangtze River,
the Zhujiang River and the Heilongjiang River, the administrative agencies in
charge of water transport sent to these provinces by the Ministry of
Communications shall organize the overall balancing. If the plans concern
water transport within the jurisdiction of the provinces, autonomous regions
and municipalities directly under the Central Government, the competent
departments for communications of these provinces, autonomous regions and
municipalities shall organize the overall balancing.

    Article 17  Water transport enterprises and other units and individuals
engaged in profit-making transport may, in their approved scope of business,
undertake and organize transport of freight and customers outside the
transport plans worked out through overall balancing. No units or individuals
shall maintain regional and departmental blockade to monopolize sources of
customers and freight.

    Article 18  Carriers and consigners of profit-making water freight
transport must conclude transport contracts in accordance with the provisions
of the Economic Contract Law of the People's Republic of China and Rules for
the Implementation of Contracts for Water Freight Transport.

    Article 19  Water transport enterprises and other units and individuals
engaged in profit-making transport must observe the relevant stipulations of
the state in collecting shipping and additional charges and use the vouchers
and receipts prescribed by the Ministry of Communications.

    Article 20  Self-employed operators (including partnerships, the same
hereafter) engaged in profit-making water transport shall cover vessel
insurance according to the relevant provisions of the state.

    Article 21  Water transport enterprises and other units and individuals
engaged in profit-making transport as well as departments for petroleum,
coal, metallurgy, commerce, supply and marketing, foreign trade, forestry,
electric power, chemical industry and aquatic products must, according to
relevant provisions, provide statistical information concerning profit-making
and non-profit-making transport to competent departments for communications
and departments in charge of statistics.

    Article 22  Water transport service enterprises shall not monopolize
sources of freight to force services on others, neither shall service charges
go beyond the prescribed standards.

    Article 23  Civil seaports or civil river ports shall provide harbour
facilities and related services to transport vessels in accordance with the
state provisions and plans concerning administration of harbours.

    Vessels entering and leaving harbours must observe harbour regulations and
subject themselves to harbour administration.

    Water transport enterprises and other units and individuals engaged in
profit-making transport may, on voluntary basis, conclude business procuration
contracts with harbour enterprises according to relevant provisions.

    Article 24  Water transport enterprises and other units and individuals
engaged in profit-making transport must pay taxes, prescribed fees
(harbour-dues, vessel berthage, navigational lane tolls) and transport
management fees. Units and individuals engaged in non-profit-making transport
must pay the necessary fees prescribed by the state.

    The procedures for calculation and collection of prescribed fees and
transport management fees shall be formulated by the Ministry of
Communications in conjunction with the relevant competent departments under
the State Council.

    Article 25  Units owned by the whole people and units owned by collectives
and self-employed boatmen that are engaged in water transport enjoy the
protection of state laws over their legitimate rights and interests. No units
and individuals shall illegally collect fees from or apportion expenses among
them.
Chapter III  Penalty Provisions

    Article 26  When these Regulations are violated in any of the following
manners, the competent departments for communications of people's governments
at or above the county level shall impose penalties respectively according to
the following provisions:

    (1) In cases of establishment of water transport enterprises or water
transport service enterprises without approval, or engagement in profit-making
transport by units and individuals other than water transport enterprises
without approval, the offender shall be confiscated of the illegal gains and
concurrently imposed a fine not less than 100% and not more than three times
the amount of the illegal gains; where there are no illegal gains, a fine of
not less than RMB 30,000 yuan and not more than RMB 250,000 yuan shall be
imposed.

    (2) In cases of exceeding the scope of business by water transport
enterprises or water transport service enterprises engaged in profit-making
activities, the offender shall be confiscated of the illegal gains and
concurrently imposed a fine not less than 100% and not more than three times
the amount of the illegal gains; where there are no illegal gains, a fine of
not less than RMB 20,000 yuan and not more than RMB 200,000 yuan shall be
imposed.

    (3) In cases of violation of relevant state provisions in collecting
freight or service charges, the violator shall be confiscated of the money
collected in violation of the provisions and concurrently imposed a fine not
less than RMB 20,000 yuan and not more than RMB 150,000 yuan.

    (4) In cases of failure to use prescribed transport vouchers and receipts
in carrying out profit-making transport, the offender shall be administered a
warning or imposed a fine not more than RMB 10,000 yuan according to the
seriousness of circumstances.

    (5) In cases of failure to pay the state prescribed fees according to
provisions, the offender shall be ordered to pay the fees within a time limit;
if he/she doesn't do so within the time limit, the offender shall, in addition
to being ordered to pay the fees unpaid, be imposed a fine not less than 100%
and not more than three times the amount of the fees unpaid; if the
circumstances are serious, the licence may be concurrently suspended.

    (6) In cases of monopolizing sources of freight to force services on
others, the offender shall be imposed a fine not less than RMB 10,000 yuan and
not more than RMB 100,000 yuan; if the circumstances are serious, the licence
may be concurrently suspended or revoked.

    Article 27  If a party does not accept the penalty decision made by the
competent departments for communications, he may apply to the competent
departments for communications at higher levels for consideration. If he still
does not accept the consideration decision made by the competent departments
for communications at higher levels, he may, within 15 days of receipt of the
written consideration decision, bring a suit before people's courts. If he
does not bring a suit nor comply with the penalty within this period, the
competent departments for communications may apply to the people's courts for
compel enforcement.

    Article 28  Violations of these Regulations punishable in accordance
with the provisions concerning administration of public security shall be
handled by public security organs. If crimes are committed, the judicial
organs shall pursue the criminal liabilities according to law.

    Article 29  If administrative personnel for water transport violate these
Regulations, the competent departments for communications shall give
administrative sanctions or economic penalties.
Chapter IV  Supplementary Provisions

    Article 30  The following terms used in these Regulations are defined as
follows:

    "Water transport enterprises" refers to the enterprises which are
specially engaged in profit-making water transport.

    "Water transport service enterprises" refers to the enterprises which go
through formalities concerning transport, handle transfer of goods and
organize sources of freight on behalf of customers; through transport service
enterprises which serve mixed means of transport are not included.

    Article 31  These Regulations shall not apply to international water
transport and water transport by raft.

    Article 32  The water transport enterprises, water transport service
enterprises and other units and individuals engaged in profit-making
transport that already started business before the promulgation of these
Regulations shall, within 180 days of the promulgation, make a deferred
application for approval. The competent departments for communications
shall order those that fall short of the necessary requirements for starting
business to cease or to get reorganized within a certain time limit. If the
reorganization proves ineffective, their business licences shall be revoked
by the competent departments for industry and commerce.

    Article 33  The Ministry of Communication shall be responsible for the
interpretation of these Regulations. It may, in accordance with these
Regulations, formulate rules for the implementation.

    Article 34  These Regulations shall go into effect on October 1, 1987.



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