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SUPPLEMENTARY CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING PORT SUPPLY TO SHIPS OF INTERNATIONAL VOYAGE

    With a view to securing a normal order in the work of port supply to ships
of international voyage, the General Office of the State Council issued
in 1992 the Circular Concerning Port Supply to Foreign and Chinese Oceangoing
Vessels, which has played a fairly important role in keeping in order and
strengthening the work of port supply to ships of international voyage,
and which shall continue to be implemented. Strict and efficient
administration must be exercised in the work of port supply to ships of
international voyage, for ports are a gateway of a country and an
important passage of foreign trade. Having been approved by the State Council,
this Circular is hereby issued as additional regulations concerning relevant
issues.

    1. As port supply to ships of international voyage is a foreign-
related service trade in which policy plays an important role, the principle
of appropriate centralization must be applied. This task shall be taken on by
the foreign ships supply companies of commercial sector (hereinafter referred
to as foreign supply companies) assigned by the government and the supply
stations(companies) established by China Ocean Shipping (Group) Corporation
in eight major ports of Guangzhou, Shanghai, Qingdao, Tianjin, Dalian,
Lianyungang, Zhanjiang and Qinhuangdao (hereinafter referred to as supply
stations of COSC). No other organizations or individuals may engage in
supplying ships of international voyage.

    2. As the main channel of port supply to ships of international voyage,
foreign supply companies shall be responsible for supplying foreign ships
(including those using a flag of convenience) and Chinese ships of
international voyage at port; supply stations of COSC shall be mainly
responsible for supplying Chinese ships of international voyage under
COSC at the eight major ports, and they may also launch the business
of supplying other Chinese ships of international voyage at port. According
to the relevant existing provisions of the state, duty-free stores of foreign
supply companies shall be unifiedly responsible for supplying ships of
international voyagewith duty-free commodities such as cigarette, wine and
beverage, etc.. No other organizations may engage in supplying duty-free
cigarette, wine or beverage by taking advantage of bonded areas or bonded
warehouses.

    3. The relevant-port administrative departments shall coordinate with each
other according to their respective functions and powers, and shall further
strengthen the supervision over and administration on the work of port supply
to ships of international voyage.

    (1) The administrative department of industry and commerce shall speed up
clarifying the channel of port supply to ships of international voyage.
Except foreign supply companies and supply stations of COSC, no organizations
or individuals may engage in the business of supplying ships of international
voyage. Those whose registrations have been approved shall be revoked of the
business licences, while those engaging in the business without licence shall
be resolutely banned and punished.

    (2)  The Customs shall further strengthen the supervision over and
administration on commodities supplied to ships. Those supplying ships in
violation of relevant provisions and those foreign ships making batch purchase
without authorization shall be resolutely investigated and punished, and the
commodities in question shall be confiscated without exception, and no
clearance shall be given.

    (3) The port offices shall strictly control the issuance of the port pass,
and shall not issue passes to persons or vehicles who or whose owners are not
entitled to engage in port supply, or let them go without a pass.

    (4) The port frontier inspection stations shall strictly control the
approval of applications for, and the issuance of, the boarding permit,
strictly prohibit those having no boarding permit from boarding ships, and
have the offender strictly punished upon discovery of the case.

    (5) The port foreign ship agencies and ocean shipping agencies shall
enthusiastically assist and cooperate with foreign supply companies in the
work of supplying ships of international voyage, and shall inform the
local foreign supply companies in time of the arrival time and the order for
goods of the ships, so that foreign supply companies can make a timely supply
to the ships according to the order and settle accounts in time.

    The above departments and agencies shall, in accordance with the gist of
this Circular, make their respective detailed procedures for implementation.

    4. Foreign supply companies and supply stations of COSC shall do their
best in the work of supplying ships of international voyage by further
strengthening the operation management, actively heightening the service
standard, and improving the service quality. Any dereliction of duty in
violation of relevant provisions shall be seriously investigated and dealt
with.

    5. The work of port supply to ships of international voyage is of
importance to the image of the state. The people's governments at the place
of every port shall attach great importance to the administration of port
supply, and coordinate and dispose of questions arising therefrom without
delay.