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DECISION OF THE STATE COUNCIL REGARDING AMENDING THE PROVISIONS ON THE ADMINISTRATION OF MARITIME INTERNATIONAL CONTAINER TRANSPORT

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-04-18 Effective Date  1998-04-18  

Decision of the State Council Regarding Amending the Provisions of the People's Republic of China on the Administration of Maritime International Container Transport




APPENDIX: PROVISIONS OF THE PEOPLE'S REPUBLIC OF CHINA ON THE
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  Penalties
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 243 of the State Council of the People's

Republic of China on April 18, 1998)

    The State Council has decided to amend the Provisions of the People's
Republic of China on the Administration of Maritime International Container
Transport as follows:

    1. Article 2 is amended as: "These Provisions shall be applicable to units
and individuals that are engaged in maritime international container
transport, and also to units and individuals that are involved in the
operations of maritime international container transport.

    "The "maritime international container transport" refers to the maritime
transport of containers between ports of the People's Republic of China and
ports of foreign countries, including the sections of transport between ports
of the People's Republic of China that belong to a whole voyage agreed upon in
a contract for maritime international container transport."

    2. Two new paragraphs are added to Article 6 separately as its second and
third paragraphs: "The regular shipping services for maritime international
container transport is subject to the approval of the department for
communications under the State Council.

    "No foreign enterprise may be permitted to be engaged in the regular
shipping services for maritime container transport between ports of the
People's Republic of China."

    3. Article 31 is deleted and a new article added as Article 31: "The
competent department for communications at or above the county level should
make an investigation in a thorough, objective and impartial manner into those
acts subject to administrative sanctions for violation of these Provisions,
and should collect relevant evidence. When necessary, they may consult
shipping documents, financial statements and other relevant materials of the
enterprises under investigation.

    "Units and individuals concerned should take concerted actions during
investigation by the competent department for communications at or above the
county level and should truthfully provide relevant materials. The competent
department for communications at or above the county level should keep
business secrets for investigated enterprises."

    4. Article 32 is amended as: "With respect to those who have violated
these Provisions and the relevant laws and regulations of the State on price
control at the same time, they shall be penalized by the department for price
control in accordance with the provisions of relevant laws and regulations."

    5. Article 33 is amended as: "With respect to those who, in violation of
provisions of Articles 14 and 21 in these Provisions, fail to use the
prescribed container shipping documents, or fail to submit statistical
statements on container transport, or untruthfully submit statistical
statements on container transport, the competent department for communications
at or above the county level shall order them to make corrections; if they
refuse to do so, a fine of not more than RMB 5,000 yuan shall be imposed."

    6. Article 34 is amended as: "With respect to those who have committed any
of the following acts in violation of these Provisions, the competent
department for communications at or above the county level shall order them to
make corrections. If they refuse to do so, the illegal gains shall be
confiscated and a fine of not less than the amount of the illegal gains and
not more than three times of the amount of the illegal gains imposed. If there
are no illegal gains, a fine shall be imposed according to the following
provisions:

    (1) In case that they are engaged in the operations of maritime
international container transport, or port handling, or services of
transshipment stations or freight stations without approval, they shall be
fined not less than RMB 30,000 yuan and not more than RMB 300,000 yuan.

    (2) In case that they are engaged in the regular shipping services for
maritime international container transport, if the regular shipping services
for container transport occur in the sections of transport between internal
ports, they shall be fined not less than RMB 30,000 yuan and not more than RMB
300,000 yuan; if the regular shipping services for offshore international
container transport occur, they shall be fined not less than RMB 50,000 yuan
and not more than RMB 500,000 yuan; if the regular shipping services for
oceangoing international container transport occur, they shall be fined not
less than RMB 500,000 yuan and not more than RMB 5,000,000 yuan.

    "If the provisions of the preceding paragraph have been violated with
serious circumstances, the administrative department for industry and commerce
shall revoke the business licences of the offenders."

    7. Articles 35 and 36 are deleted.

    This Decision shall come into force as of the date of promulgation.

    Besides, wording in part of articles and the order of articles shall be
correspondingly adjusted and changed.

    The Provisions of the People's Republic of China on the Administration of
Maritime International Container Transport shall be republished after being
correspondingly revised according to this Decision.

APPENDIX: PROVISIONS OF THE PEOPLE'S REPUBLIC OF CHINA ON THE
ADMINISTRATION OF MARITIME INTERNATIONAL CONTAINER TRANSPORT (Promulgated by
Decree No. 68 of the State Council of the People's Republic of China on
December 5, 1990, and revised according to 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 be applicable to units and individuals
that are engaged in maritime international container transport, and also to
units and individuals that are involved in the operations of maritime
international container transport.

    The "maritime international container transport" refers to the maritime
transport of containers between ports of the People's Republic of China and
ports of foreign countries, including the sections of transport between ports
of the People's Republic of China that belong to a whole voyage agreed upon in
a contract for maritime international container transport.

    Article 3  The department for communications under the State Council 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 and Their Routes for Regular Services

    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 department for
communications under the State Council for examination and approval.

    The regular shipping services for maritime international container
transport is subject to the approval of the department for communications
under the State Council.

    No foreign enterprise may be permitted to be engaged in the regular
shipping services for maritime container transport between ports of the
People's Republic of China.

    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 department for communications under
the State Council 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 department for communications
under the State Council for the record.

    The procedures for the examination and approval of the applications from
the sector of foreign economic relations and trade for the establishment of
new transshipment stations and freight stations that undertake the transport
of maritime international containers shall be formulated separately by the
department for communications in conjunction with the department for foreign
economic relations and trade under the State Council.

    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
department for communications under the State Council for examination,
verification, and consent; and shall then, in accordance with the provisions
of the pertinent laws and regulations, be submitted to the department for
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 their 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 operations for container transport; and

    (4) to meet other conditions as stipulated by State laws 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 that 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 transportation 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 surcharge for the storage of goods and
containers and 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 transportation 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 and enterprises that are engaged in port handling
shall handle the hand-over operations alongside vessel through the tally
companies;

    (2) With respect to containers transported by waterways through nodal
points, the enterprises that are 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 are 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 are 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 seals 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 consignors 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 or of the goods proper and the containers, or of
other goods and containers, 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  Penalties

    Article 31  The competent department for communications at or above the
county level should make an investigation in a thorough, objective and
impartial manner into those acts subject to administrative sanctions for
violation of these Provisions, and should collect relevant evidence. When
necessary, they may consult shipping documents, financial statements and other
relevant materials of the enterprises under investigation.

    Units and individuals concerned should take concerted actions during
investigation by the competent department for communications at or above the
county level and should truthfully provide relevant materials. The competent
department for communications at or above the county level should keep
business secrets for investigated enterprises.

    Article 32  With respect to those who have violated these Provisions and
the relevant laws and regulations of the State on price control at the same
time, they shall be penalized by the department for price control in
accordance with the provisions of relevant laws and regulations.

    Article 33  With respect to those who, in violation of provisions of
Articles 14 and 21 in these Provisions, fail to use the prescribed container
shipping documents, or fail to submit statistical statements on container
transport, or untruthfully submit statistical statements on container
transport, the competent department for communications at or above the county
level shall order them to make corrections; if they refuse to do so, a fine of
not more than RMB 5,000 yuan shall be imposed.

    Article 34  With respect to those who have committed any of the following
acts in violation of these Provisions, the competent department for
communications at or above the county level shall order them to make
corrections. If they refuse to do so, the illegal gains shall be confiscated
and a fine of not less than the amount of the illegal gains and not more than
three times of the amount of the illegal gains imposed. If there are no
illegal gains, a fine shall be imposed according to the following provisions:

    (1) In case that they are engaged in the operations of maritime
international container transport, or port handling, or services of
transshipment stations or freight stations without approval, they shall be
fined not less than RMB 30,000 yuan and not more than RMB 300,000 yuan.

    (2) In case that they are engaged in the regular shipping services for
maritime international container transport, if the regular shipping services
for container transport occur in the sections of transport between internal
ports, they shall be fined not less than RMB 30,000 yuan and not more than RMB
300,000 yuan; if the regular shipping services for offshore international
container transport occur, they shall be fined not less than RMB 50,000 yuan
and not more than RMB 500,000 yuan; if the regular shipping services for
oceangoing international container transport occur, they shall be fined not
less than RMB 500,000 yuan and not more than RMB 5,000,000 yuan.

    If the provisions of the preceding paragraph have been violated with
serious circumstances, the administrative department for industry and commerce
shall revoke the business licences of the offenders.
Chapter VI  Supplementary Provisions

    Article 35  These Provisions shall go into effect as of the date of
promulgation.



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