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REGULATIONS OF SHANGHAI MUNICIPALITY ON THE ADMINISTRATION OF WATERWAY TRANSPORTATION

Regulations of Shanghai Municipality on the Administration of Waterway Transportation

     CHAPTER I GENERAL PROVISIONS CHAPTER II BASIC STIPULATIONS CHAPTER III CARGO TRANSPORTATION CHAPTER IV PASSENGER TRANSPORTATION CHAPTER V TRANSPORTATION SERVICE CHAPTER VI LEGAL LIABILITIES CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 1 The present Regulations are formulated with a view to maintaining the order of the waterway transportation market, safeguarding the legitimate rights and interests of the operators, passengers, cargo-owners and other interested parties of waterway transporters, promoting waterway transportation undertakings, standardizing the administration of waterway transportation in accordance with relevant State laws and regulations in the light of the specific circumstances of the city.

   Article 2 The present Regulations are applicable to for-profit domestic and international waterway cargo transportation, waterway passenger transportation (including tourism transportation) and waterway transportation service (hereinafter referred to as waterway transportation) and their administration within the administrative areas of this municipality.

   Article 3 The Shanghai Municipal Communications Office (hereinafter referred to as the Municipal Communications Administrative Department) is responsible for the administration of waterway transportation within the municipality and for the implementation of the present Regulations. The communications administrative departments of Pudong New Area, Jiading District, Minghang District, Baoshan District, Jinshan District and the counties (hereinafter referred to as district or county communications administrative departments) are responsible for the administration of waterway transportation within their respective administrative areas.

Shanghai Municipal Administrative Section of Navigational Matters under the Municipal Communications Administrative Department (hereinafter referred to as the Municipal Navigational Matters Section) is specifically in charge of waterway transportation within the municipality; the administrative offices of navigational matters under the district or county communications administrative departments (hereinafter referred to as district or county offices of navigational matters) are specifically in charge of waterway transportation within their respective administrative areas under the professional guidance of the Municipal Navigational Matters Section.

Other relevant municipal administrative departments and the administrative departments of marine safety supervision, and of ship examination and the customs shall coordinate to implement the present Regulations in the light of their respective duties.

   Article 4 The administration of waterway transportation shall follow the principles of protecting lawful operation, upholding fair competition and adhering to well-coordinated development, so as to promote the supply of a safe, punctual, high-speed, economical and convenient service for the nationals economy and social development.

   Article 5 The Municipal Communications Administrative Department shall work out plans for developing waterway transportation in this municipality in the light of the needs for economy and social development, and organize the implementation of the plans after submitting them to the Municipal People's Government for approval.

   Article 6 Trade associations legally organized by operators of waterway transport business shall establish trade self-disciplinary mechanism in accordance with the provisions of laws and regulations. These trade associations shall provide the operators of water way transport business with policy and information counselling service, and safeguard their legitimate rights and interests These associations shall be entrusted by the Municipal Communications Administrative Department to guide the operators of waterway transport business in their operations, and shall offer opinions and suggestions to the Municipal Communication Administrative Department.

   Article 7 This municipality implements the licensing system in for- profit waterway transportation.

For-profit waterway transportation activities shall be carried out in accordance with the laws and regulations and the provisions governing waterway transportation promulgated by the state communication administrative department, after obtaining statutory qualifications for operating waterway transportation, and within the approved scope of business.

   Article 8 To establish a waterway cargo and/or passenger transportation enterprise the following requirements shall be met:

1. Possessing ships appropriate for its scope of business and the valid ship's papers signed and issued by the ship-survey department;

2. Having appropriate organizations and professionals;

3. Major crew members holding valid qualification certificates;

4. Possessing permanent premises of business and necessary facilities, and in the case of a passenger transportation enterprise, making sure that passenger ships have proper stations or places for stopping en route; and

5. Possessing a registered capital appropriate for its scope of business.

Self-employed workers engaged in waterway cargo and/or passenger transportation shall meet Items 1, 3, 4 and 5 of the above-mentioned requirements.

Enterprises that are required by the State provisions to have the third- party liability insurance, traveler's accident insurance and marine hull insurance shall produce evidences of such insurance.

   Article 9 To establish a waterway transportation service enterprise the following requirements shall be met:

1. Having appropriate organizations and professionals;

2. Possessing permanent premises of business and necessary operational facilities; and

3. Possessing a registered capital appropriate for its scope of business.

The requirements for self-employed workers to be engaged in waterway transportation service shall be set in accordance with the relevant State provisions.

   Article 10 To establish an enterprise or self-employed worker's business of waterway cargo and/or passenger transportation, application for preparation for establishment shall be filed first. Only after the application is approved by the communication administrative department shall the preparation work be started and ship be purchased. When the preparation for establishment is completed, applications for starting business shall be filed.

   Article 11 Applications for operating domestic waterway transportation business shall be made to the Municipal Navigational Matters Section or the district or county office of navigational matters; and applications for operating international waterway transportation business shall be made to the Municipal Communications Administrative Department.

The departments or offices that accept applications shall submit the applications to the relevant departments for examination and approval in accordance with their limits of authority. The departments of examination and approval in this municipality shall make written decisions about examination and approval within the stipulated period. If an application is approved, the waterway transportation licence, the waterway transportation service licence or other relevant papers of approval shall be issued according to the applicants' scope of business.

Applications for establishing waterway transportation enterprises with foreign capital shall be made to the Municipal Communications Administrative Department, and shall be examined and approved in accordance with relevant laws and regulations.

   Article 12 Enterprises that have obtained the waterway transportation licence, the waterway transportation service licence or other papers of approval shall register with the industrial and commercial, and the taxation administrative department with the licence or other papers of approval, and shall start their business only after they are approved to obtain business licences and tax registration certificates.

   Article 13 Operators of waterway cargo and/or passenger transport business of this municipality who are engaged in domestic waterway transportation, shall obtain the ship transportation business licence and relevant documents from the Municipal Navigational Matters Section according to the ships whose applications have been verified and approved.

The ship shall carry with it the ship transportation business licence.

   Article 14 In case of merger, split-off or changes in the scope of business, operators of waterway transport business of this municipality shall report it to the original department of examination and approval, and have their relevant licences changed after approval, and go through corresponding formalities with the industrial and commercial, and tax administrative departments. In case of the change in the name of the enterprise, the domicile or the legal representative, an enterprise shall have their relevant licences changed at the original departments of examination and approval, and make the corresponding in the change registration at the industrial and commercial, and tax administrative departments.

   Article 15 Operators of waterway transport business of this Municipality shall report to the original department of examination and approval 30 days prior to close-down or suspension of business, and shall return the licences and relevant business papers when going through relevant formalities.

   Article 16 Non-for-profit waterway transportation units of this municipality, that want to be engaged in temporary for-profit waterway cargo and/or passenger transportation business within the municipality, shall apply to the Municipal Navigational Matters Section and obtain the approval of the Municipal Communications Administrative Department. Units that want to be engaged in trans-municipal waterway cargo and/or passenger transportation business shall be handled in accordance with Article 11 of the present Regulations.

The period of time of the operation of temporary for-profit waterway cargo and/or passenger transportation shall not go beyond one year.

   Article 17 The Operators of waterway transport business from other provinces and municipalities who are engaged in waterway cargo and/or passenger transportation within this municipality shall apply to the Municipal Navigational Matters Section and shall obtain the approval of the Municipal Communications Administrative Department.

   Article 18 The operators of waterway transport business of this municipality, the operators of waterway transport business from other provinces and municipalities engaged in for-profit waterway cargo and/or passenger transportation within this municipality, and units engaged in temporary for-profit waterway cargo and/or passenger transportation shall pay waterway transportation administration fee in accordance with the State provisions.

   Article 19 Operators of waterway transportation business and the departments of petroleum, coal, metallurgy, commerce, supply and marketing, foreign trade, forestry, electric power, chemical industry, aquatic products and environmental sanitation in this municipality shall submit waterway transportation statistical reports to the communications administrative departments in time and accurately.

   Article 20 Major employees engaged in waterway transportation business shall be trained and examined in knowledge of laws and regulations governing waterway transportation and in vocational skills and knowledge. They shall hold relevant qualification certificates before starting employment.

   Article 21 The Municipal Communications Administrative Department or the Municipal Navigational Matters Section shall examine and check the business qualifications of operators of waterway transport business of this municipality annually. Only those who pass the annual examination and check shall be allowed to continue to operate the business.

The Municipal Communications Administrative Department or the Municipal Navigational Matters Section shall give written decisions within 30 days after receiving the annual examination and check forms filled by operators of waterway transportation.

   Article 22 The increase of transportation capacity by operators of waterway transport business of this municipality shall be handled in accordance with the relevant State provisions.

Purchase of overage or scrapped ships to increase and renew transportation capacity is forbidden.

In case of scrapping, selling or reequipping ships, operators of waterway transport business of this Municipality shall submit to the Municipal Navigation Matters Section or the district or county offices of navigational matters testimonials issued by the ship registration office and have ship operation and transportation certificates cancelled or altered.

If the increase or decrease of transportation capacity by the operator of waterway transport business of this municipality is transacted at Shanghai Shipping Exchange in accordance with the State provisions, ship trading papers issued by Shanghai Shipping Exchange shall be submitted to the Municipal Navigational Matters Section or to the district or county offices of navigational matters when applying for or cancelling the ship transportation certificates.

   Article 23 Operators of waterway cargo and/or passenger transport business shall observe the state laws and regulations governing the prevention and control of water pollution by strengthening maintenance of equipment, improving administration of operation, keeping environmental sanitation in navigational and anchorage waters, and shall not discharge or dump waste and pollutants in violation of laws and regulations.

   Article 24 The Municipal Communications Administrative Department, the Municipal Navigational Matters Section and the district or county offices of navigational matters shall strengthen the supervision and inspection of waterway transportation. Law enforcement officials of traffic administration shall wear unified signs and uniforms, and show their unified credentials of administrative law enforcement.

Operators of waterway transport business shall conscientiously accept the inspection by the law enforcement department of traffic administration, report the situation accurately and provide relevant data.

   Article 25 No enterprise or individual person shall lend, transfer, sell, alter or forge waterway transportation certificates, uniform invoices and other relevant business documents and papers stipulated by the present Regulations.

   Article 26 Waterway cargo transportation for rescue and relief purposes or which is instructed by the State or municipal people's government shall be organized and implemented by the Municipal Communications Administrative Department or the Municipal Navigational Matters Section.

No unit or individual person is allowed to implement departmental or regional monopoly of waterway cargo transportation.

   Article 27 If the waterway cargo transportation takes this municipality as place of departure, the operators shall sign contracts of waterway cargo transportation with the consignors. Contracts of domestic waterway cargo transportation shall use the model contracts recommended by the Municipal Communications Administrative Department and the industrial and commercial administrative department.

If the operators and the consignors conduct their transaction of water way cargo transportation at the Shanghai Shipping Exchange, they shall deserve the rules of exchange provided by the State.

   Article 28 When the operators of waterway cargo transport business transport dangerous cargo they shall handle the dangerous goods in accordance with the provisions of State laws and regulations governing the transportation of dangerous cargo.

Consignors shall observe the provisions governing the transportation of dangerous cargo in consigning dangerous cargo for shipment and shall not give false information about names of articles, with hold the true nature of cargo or hide secretly dangerous cargo in ordinary cargo.

Operators of waterway cargo transport business shall request consignors to produce relevant certificates in case of cargo which, according to State laws and regulations must be transported with certificates.

   Article 29 Operators of international waterway cargo transport business who are engaged in marine container transportation in this municipality may conduct international transshipment of containers.

The Municipal Communications Administrative Department, the Marine Safety Supervision Office, the Customs and other relevant departments of administration and supervision shall simplify formalities to facilitate international transshipment in the light of international practice and relevant State and municipal laws and regulations on the principle of high-speed, convenience, safety and without impediment.

Procedures governing international marine transshipment of containers shall be formulated separately by the Municipal People's Government.

   Article 30 If the freight-tariff of domestic waterway cargo transportation is fixed by the state, the freight shall be charged at the rate fixed by the State. If the freight-tariff is fixed by this Municipality, the Municipal Communications Administrative Department shall put forward proposals and have them implemented after being approved by the municipal price control department. If the freight- tariff is fixed by the operators of transport business, it shall be fixed on the principle of fairness and reasonableness.

The freight-tariff of international waterway cargo transportation shall be fixed by the operators of transport business and shall be reported for the record as provided by the State laws and regulations governing the reporting for the record of shipping freight-tariff.

   Article 31 Operators of domestic waterway cargo transport business shall use the bill of freight for waterway cargo transportation standardized by the Municipal Communications Administrative Department if they start shipment in this Municipality.

Operators of domestic waterway cargo transport business of this Municipality and other operators engaged in for-profit local waterway cargo transportation within this municipality shall use uniform invoices for waterway cargo transportation of this Municipality.

Uniform invoices for waterway cargo transportation of this municipality shall be printed under the supervision of the municipal tax administrative department. The uniform invoices shall be printed, issued and controlled by the Municipal Communications Administrative Department; other documents for waterway cargo transportation shall be printed, issued and controlled by the Municipal Communications Administrative Department or the Municipal Navigational Matters Section in accordance with the relevant State provisions.

   Article 32 The system of submitting specimen bills of lading for international waterway cargo transportation for the record shall be implemented.

Carriers who sign and issue bills of lading for international waterway cargo transportation shall submit specimen bills of lading to the Municipal Communications Administrative Department for the record.

The Municipal Communications Administrative Department shall make the specimen bills of lading submitted for the record accessible to public inspection.

The procedures for the implementation of the system of submitting specimen bills of lading for international waterway cargo transportation for the record shall be formulated by the Municipal Communications Administrative Department.

CHAPTER IV PASSENGER TRANSPORTATION

   Article 33 Operators of waterway passenger transport business shall provide the passengers with a civil and standardized service, and transport their passengers in accordance with the name of ship, voyage number, date, and class of cabin as stated on the ticket, and ensure that the passengers arrive safely at their destinations.

Operators of waterway passenger transport business shall not charge extra for the items of service already included in the price of the ticket, or compel the on passengers to accept items of service for charge.

   Article 34 Operators of domestic waterway passenger transport business shall provide service in compliance with the ratified shipping lines, voyage numbers and ports of call, and are not allowed to cancel shipping lines, or increase or decrease voyage numbers or ports of call without authorization. In case of such changes, applications shall be made to the Municipal Communications Administrative Department 30 days prior to such changes. Changes shall be announced after approval.

Temporary cancellation of voyages due to force majeure shall be announced in advance and the passengers shall be fully refunded or have their tickets changed.

   Article 35 Passenger transportation facilities of ships shall be kept in good technical and hygienic conditions, with complete set of safety equipment, and in conformity with the passenger quota and the norm of cabin equipment stipulated by the State.

Operators of waterway passenger transport business shall install in their own passenger stations basic facilities for waiting for ships, ticket selling and service and necessary safety equipment in the light of the volume of traffic. These facilities and equipment shall meet the criteria stipulated by the State.

Ferry termini shall have waiting rooms, site, passageway for entrances and exits, bridge approaches and facilities for the berthing of ferries appropriate to the volume of passengers and traffic.

   Article 36 Operators of waterway passenger transport business of this municipality shall keep the order at passenger stations and ferry termini, and ensure the normal operation of passenger transportation and ferry crossing.

   Article 37 Operators of waterway passenger transport business shall enforce an examination of passenger luggage for dangerous goods in accordance with the State provisions.

No one shall carry any dangerous goods and other banned goods into the stations or on board the ships, or have them consigned for shipment.

Operators of waterway passenger transport business may refuse to carry passengers who refuse the examinations for dangerous goods. Operators of waterway passenger transport business may put the dangerous goods which have been carried into the stations or on board the ships under supervision and control, or handle the dangerous goods in accordance with the relevant State provisions.

   Article 38 Prices for domestic waterway passenger transportation shall be fixed in accordance with Article 30, (1) of the present Regulations.

Prices for international waterway passenger transportation shall be fixed by the operators of international passenger transport business themselves.

   Article 39 Operators of domestic waterway passenger transport business shall use tickets which have the basic form stipulated by the State.

   Article 40 Waterway transportation service consists of shipping agency and/or cargo and passenger transportation agency.

Operators of waterway transportation service engaged in shipping agency may be entrusted by the carrier to contract cargo or passenger carriage on behalf of the operators, and to handle waterway cargo or passenger transportation procedures, and to provide relevant services in the name of the carrier within the scope of authorization stipulated in their agreement.

Operators of waterway transportation service engaged in cargo and/or passenger transportation agency may be entrusted by the consignor, carrier or passenger to make shipping arrangements and book cabins or seats or to handle shipping transportation or cargo loading and unloading procedures in the name of the consignor, carrier or passenger, and to provide related services.

   Article 41 Operators of waterway transportation service shall sign agency contracts with the entrusting party on the principle of equality and free will and provide a lawful, safe and trustworthy and reliable service in accordance with the agreed items of agency.

   Article 42 When acting as an agent operators of waterway transportation service shall sign contracts of waterway cargo transportation with the carrier or consignor or consignee, or sell tickets to passengers in the name of the principal.

   Article 43 Operators of waterway transportation services shall not engage themselves in the following activities:

1. Consigning for shipment or carrying cargo for others in the name of their own enterprises so as to gain the price differences;

2. Acting presumptuously as agent;

3. Providing waterway transportation service for those operators without qualifications for operating waterway transportation or those operating beyond scope of business; and

4. Monopolizing or reselling at a profit the sources of cargo, or drive up or force down the transportation charges in collaboration with each other by undue means.

   Article 44 Operators of transportation service shall collect agency service charges at the standards stipulated by the state and this municipality. Operators of waterway transportation service of this municipality engaged in domestic waterway transportation service shall use the uniform waterway transportation service invoices provided by the Municipal Communications Administrative Department.

The uniform waterway transportation service invoices shall be administered and used in accordance with Article 31, (3) of the present Regulations.

   Article 45 The Municipal Traffic Administrative Department or the Municipal Office of Navigational Matters or the district/county offices of navigational matters shall impose penalties on violations of the present Regulations within their respective duties and powers in accordance with the following provisions:

1. Those who operate for-profit waterway transportation with invalid permits or certificates or without any permits or certificates in violation of Articles 7, 13, 16 and 17 shall be ordered to stop their illegal operations, their illegal earnings shall be confiscated and they shall pay a fine of one to three times their illegal earnings, but the fine shall not exceed 100,000 yuan; those who operate forprofit waterway transportation beyond their scope of business shall be given a disciplinary warning or shall be imposed a fine of not less than 3,000 to not more than 30,000 yuan;

2. Those who do not have their permits and certificates changed, or do not go through annual checks, or provide false data when accepting examinations by the law enforcement departments in violation of Article 14, (1) of Article 21, or (2) of Article 24 shall be given a disciplinary warning or shall be imposed a fine of not more than 5,000 yuan;

3. Those who stop or suspend business without authorization in violation of Article 15 shall be given a disciplinary warning or shall be imposed a fine of not less than 500 yuan to not more than 2,000 yuan;

4. Those who lend, transfer, resell at a profit, alter without authorization or forge business permits or uniform waterway transportation invoices and documents in violation of Article 25 shall have all their permits, invoices and documents handed in, their illegal earnings confiscated and shall be imposed a fine of from one to five times their illegal earnings, but the fine shall not exceed 100,000 yuan;

5. Those who operate waterway transportation of dangerous goods not in compliance with the laws and regulations shall be given a disciplinary warning and be imposed a fine of not less than 2,000 to not more than 20,000 yuan;

6. Those who do not use the uniform waterway transportation invoices and documents in violation of Article 31, (1) and (2), and Article 44, (1) shall be ordered to correct their malpractices, be given a disciplinary warning or be imposed a fine of not less than 200 to not more than 5,000 yuan;

7. Those who do not submit for record bills of lading in violation of (2) of Article 32 shall be given a disciplinary warning or be imposed a fine of not less than 5,000 to not more than 20,000 yuan;

8. Those who cancel their transportation routes, increase or decrease the number of voyages and ports of call in violation of article 34 shall be ordered to correct their malpractices and be imposed a fine of not less than 1,000 to not more than 10,000 yuan;

9. Those who do not keep order at passenger stations and ferry termini in violation of Article 36 shall be ordered to correct their malpractices, be given a warning or be imposed a fine of not more than 5,000 yuan;

10. Those who do not enforce examinations for dangerous goods in violation of Article 37 shall be given a disciplinary warning and be imposed a fine of not less than 500 to not more than 5,000 yuan;

11. Those who do not use passenger tickets with a stipulated form in violation of Article 39 shall be ordered to correct their malpractices, be given a warning or be imposed a fine of not less than 500 to not more than 2,000 yuan;

12. Waterway transportation service enterprises, which consign for shipment or carry others' cargo in the name of their own enterprises to gain price differences in violation of Article 43 shall be given a disciplinary warning and be imposed a fine of one to three times their illegal earnings, but the fine shall not exceed 50,000 yuan; Those who act presumptuously as agent shall be given a disciplinary warning and be imposed a fine of not less than 1,000 to not more than 5,000 yuan; and the violators who provide service for illegal operators shall be given a disciplinary warning or be imposed a fine of not less than 1,000 to not more than 10,000 yuan.

If the wrongful acts named in the Items (1), (4), (5), (6), (11) and (12) of the above paragraph are serious, the wrongdoer may be ordered to suspend business to overhaul and consolidate it; among which the wrongdoer of the acts named in Items (1), (4) and (2) of the above paragraph may also have their business permits and certificates revoked.

Violators of the present Regulations shall not be fined or punished once again for the same wrong if they have already been fined or punished by other administrative departments in accordance with laws and regulations.

   Article 46 Violators of the present Regulations shall make proper compensation for damages caused to other people and shall be held liable for corresponding civil liabilities.

   Article 47 Those who refuse or hinder the traffic administrators' execution of duties in violation of the "Regulations of the People's Republic of China on Public Security Administration and Imposition of Punishment" shall be penalized by the public security departments.

If the wrongful act in violation of the present Regulations is serious and constitutes a crime, the wrongdoer shall be prosecuted for criminal liability according to law.

   Article 48 Traffic administrators who have neglected their duties, abused their power or acted wrongfully for selfish ends shall be given administrative penalties by their units or higher authorities; those whose act constitutes a crime shall be prosecuted for their criminal liability.

   Article 49 The municipal or district or county traffic administrative departments, or the municipal Navigational Matters Section or district or county offices of navigational matters shall issue a notice of decision on imposing an administrative punishment. They shall issue receipts uniformly printed by the municipal finance department for collection of fines or of confiscated money or goods.

All the fines collected and money confiscated shall be turned over to the State treasury.

   Article 50 The party concerned that refuses to accept the specific administrative act enforced by the municipal or district or county communications administrative departments, or by the Municipal Navigational Matters Section or district or county offices of navigational matters, may apply for reconsiderations or bring a lawsuit in accordance with the Regulations on Administrative Reconsiderations and Administrative Litigation Law of the People's Republic of China.

If the party concerned does not apply for reconsiderations or institute a lawsuit within the stipulated period, nor perform the administrative decision of punishment, the department that issues the decision of punishment may apply to the people's court for enforcement.

CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 51 The following terms in the present Regulations are defined as follows:

1. For-profit waterway transportation refers to the waterway transportation that provides service for society and incurs various types of transportation charges settlement.

2. Non-for-profit waterway transportation refers to the waterway transportation that provides service for one's own unit and incurs no external transportation charges settlements.

3. International waterway cargo transportation bills of lading refers to the documents which are used to prove that the contract(s) of international waterway cargo transportation and the cargo have been received or loaded on board, and to ensure the delivery of cargo.

4. International marine container transshipment refers to the transshipment of international container cargo loaded overseas for shipment that is reloaded in this municipality on board the ships on international shipping lines and continue to be forwarded to the designated port(s) in the third country or region.

5. Ferry termini refers to the docks and attached facilities for waiting on the sides of the rivers and lakes within the administrative areas of this municipality used exclusively for ferrying passengers and vehicles.

   Article 52 Operation of waterway transportation to and from the Hongkong Special Administrative Region, Macao and Taiwan regions shall be handled with reference to the provisions on international waterway transportation of the present Regulations.

   Article 53 The administration of international waterway cargo transportation agency shall be carried out in accordance with the relevant state and municipal regulations governing international cargo transportation agency.

   Article 54 The Municipal Communications Administrative Department shall be responsible for the interpretation of the specific application of the specific application of the present Regulations.

   Article 55 The present Regulations shall become effective on January 1, 1998.

    




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