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 countries. 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 countries 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 Application2 Ship’s Particulars3 Form of Ocean B/L4 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.

Source of Information: Bruce Hung Hong Kong