Bulletin 273 - 11/02
Direct Trade between Taiwan/Mainland China (Update)
Further to LP Bulletin 183 04/01 we would like to remind Members of the rules regarding trade between China and Taiwan. These rules were originally announced in 1996 but have not been fully enforced. We understand this has now changed and that action will be taken against ships carrying cargoes direct between the two places. We understand that some foreign ships have already been detained for non-compliance. Members could face heavy fines for such illegal trading.
We would further advise Members that LOCAL shipping companies who intend to trade between the two places are now strictly required to file for an application to the Ministry of Communication (MOC) of the Peoples Republic of China ((PRC) see article 5 part 1 & 2 and article 6). The following documents must be submitted when applying to undertake for the cross-strait carriage:
1. Letter of Application
2. Ship’s Particulars
3. Form of Ocean B/L
4. Other documents/papers as required by Ministry of Communications.
The "License for Undertaking Operation of Carriage by Sea Cross the Taiwan Strait" and "Certificate for Trading Cross the Taiwan Strait" when issued by the MOC should be valid for one year.
We have been advised from a local source that a summary of these Rules was internally circulated within mainland China on approx 26th October 2002, and that the Ministry of Communication of PRC will strictly follow them.
We understand this will not affect passenger/container ships already in possession of MOC approval but would recommend Members contact their local agents to make sure.
Translation
Provisions on Administration of the Shipping Activities in the Taiwan Strait
Article 1
The Provisions are formulated on basis of the principle of one China, bi-directional direct service and mutual benefit with a view to promoting the development of the shipping ventures between China mainland and Taiwan area, safeguarding the normal shipping order and developing the cross-strait economic and trade relationship.
Article 2
The Provisions are applicable to the non-stop carriage of passengers and cargo by sea between ports of China mainland and Taiwan area (such carriage is hereinafter referred to as cross-strait carriage).
Article 3
Cross-strait carriage is domestic transportation under special administration.
Article 4
Ministry of Communications of the People’s Republic of China (“Ministry of Communications”) is the competent authority for administration of the cross-strait carriage.
Article 5
Shipping companies registered in China mainland or Taiwan area may engage in the cross-strait carriage operation by the vessel(s) owned or operated by them with the approval of Ministry of Communications, provided always that the following conditions are met:
1. Such shipping companies are the solely owned shipping company in China mainland or Taiwan area.
2. Such shipping companies are the equity joint ventures from China mainland and Taiwan area.
Article 6
To apply for undertaking cross-strait carriage operation, the local shipping companies registered in China mainland shall seek the approval of Ministry of Communications after examination formalities with the provincial authorities of transport and communications and the shipping companies directly under various departments of the State Council shall seek the approval of Ministry of Communications after examination and approval by the relevant competent authorities.
To apply for undertaking cross-strait carriage operation, shipping companies registered in Taiwan area shall authorize the shipping agency companies in China mainland as agents to filing applications for examination and approval first by the local provincial competent authorities of transport and communications then by the Ministry of Communications.
Article 7
To apply for undertaking cross-strait carriage operation, the following documents/papers must be submitted:
1. Letter of Application
2. Ship’s Particulars
3. Form of Ocean B/L
4. Other documents/papers as required by Ministry of Communications
To apply for undertaking liner service, the agreement of transportation concluded by the port(s) and the shipping companies and the rate tariff.
Article 8
Ministry of Communications shall make a decision to approve or disapprove the application within 45 days form the date receiving the application documents and shall give a written notice to the applicant of such decision.
Article 9
License for Undertaking Operation of Carriage by Sea Cross the Taiwan Strait and Certificate for Trading Cross the Taiwan Strait shall be issued by Ministry of Communications for the shipping companies and the vessels approved to undertake cross-strait carriage operation.
The term of validity of the above license and certificate is one year.
Article 10
Without approval of Ministry of Communications, foreign shipping companies are not allowed to engage in the non-stop or trans-shipment carriage of passengers or cargo by sea between ports of China mainland and Taiwan area.
Article 11
The name list of the ports and shipping agency companies in china mainland allowed to provide service for the cross-strait carriage operation shall be approved and published by Ministry of Communications.
Without approval any ports or shipping agency companies in china mainland are not allowed to provide any service related to the cross-strait carriage operation.
Article 12
Harbour superintendence administrations shall not give entry/exit permission to, ports shall not provide loading/unloading operation to, and the shipping agency companies shall not provide agency service for the vessels of the shipping companies that have not been approved by Ministry of Communications to engage in cross-strait carriage operation.
Article 13
Ministry of communications will give warnings to those fail to comply with the provisions of Article 5 or Article 11 and engage in the cross-strait carriage operation or the service related thereto and forfeit any illegal gains thereby.
Article 14
For port operators or shipping agency companies who violate the provisions of Article 12 and provide relevant services to the vessels of the shipping companies unqualified to engaged in cross-strait carriage operation, Ministry of Communications will give warning and forfeit illegal gains. In case of serious circumstance, the qualifications of such port operators or shipping agency companies to provide services related to the cross-strait carriage operation may also be revoked.
Article 15
The Provisions shall come into force as of 20th August 1996.
Download this bulletin in PDF format:
|
