PROVISIONS OF THE PEOPLE'S REPUBLIC OF CHINA ON THE ADMINISTRATIONOF MARITIME INTERNATIONAL CONTAINER TRANSPORT

PROVISIONS OF THE PEOPLE'S REPUBLIC OF CHINA ON THE ADMINISTRATIONOF MARITIME INTERNATIONAL CONTAINER TRANSPORT This English document is coming from the "LAWS AND REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7) which is compiled by the Brueau of Legislative Affairs of the State Council of the People's Republic of China, and is published by the China Legal System Publishing House.

In case of discrepancy, the original version in Chinese shall prevail.

Whole Document 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 effective as of the date of promulgation) 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 apply to those enterprises that are established within the territory of the People's Republic of China for the handling of maritime international container transport, and also to units and individuals that are involved in the operations of maritime international container transport.

Article 3 The Ministry of Communications 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 Applica- tions for the Establishment of Enterprises That Handle Maritime Inter- national Container Transport 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 Ministry of Communications for examination and approval.

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 Ministry of Communications 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 Ministry of Communications for the record. The procedures for the examination and approval of the applications for the establishment of new transshipment stations and freight stations that undertake the transport of maritime international containers shall be formulated separately by the Ministry of Communications in conjunction with the Ministry of Foreign Economic Relations and Trade.

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 Ministry of Communications for examination, verification, and consent; and shall then, in accordance with the provisions of the pertinent laws and regulations, be submitted to the Ministry of 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 business operations; (4) to meet other conditions as stipulated by State laws, decrees 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, which 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 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 shall handle the hand-over operations alongside vessel through the tally companies and enterprises that are engaged in port handling; (2) with respect to containers transported by waterways through nodal points, the enterprises that 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 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 enterprises that engaged in port handling or highway carriers and railway carriers shall handle the hand-over operations at the site of handling.

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 of 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 for 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 of the goods proper and the containers, or of other goods, 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 Provisions on Penalties Article 31 With respect to those who are engaged in container transport business without a business licence for handling transport business, the competent department for communications shall order them to cease business operations, and penalties shall be imposed on them by the administrative department for industry and commerce.

Article 32 With respect to those who have received shipping charges in violation of these Provisions and the relevant laws and regulations of the State on commodity prices, they shall be penalized by the department for the control of commodity prices.

Article 33 With respect to those who have violated the administration of transport documents, they shall be given an administrative warning or a pecuniary penalty by the competent department for communications in light of the seriousness of the cases.

Article 34 With respect to those who have disturbed the normal order of transportation or have expanded their scope of business without authorization, they shall be ordered by the competent department for communications to carry out rectification of their business, and shall be penalized by the administrative department for industry and commerce.

Article 35 In the event that the person concerned does not accept the decision on penalties, he/she may, within 15 days as of the first day after the receipt of the notice of the decision on penalties, appeal to the competent department immediately above the punishing department for reconsideration of the aforesaid decision on penalties. The competent department that has received the appeal for reconsideration shall, within 30 days (after receiving the appeal), make the decision on reconsideration. If the person concerned still does not accept the decision of the reconsideration, he/she may, within 15 days immediately after receiving the decision on reconsideration, bring a suit before a people's court. If the person concerned neither appeal for reconsideration, nor bring a suit before the people's court, nor execute the decision on penalties or the decision of the reconsideration within the prescribed period of time, the department that has made the decision on penalties may apply to the people's court for enforcement.

Chapter VI Supplementary Provisions Article 36 The right to interpret these Provisions resides in the Ministry of Communications. The Ministry of Communications may formulate the rules for implementation in accordance with these Provisions.

Article 37 These Provisions shall go into effect as of the date of promulgation.

t 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 of 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 for 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 of the goods proper and the containers, or of other goods, 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 Provisions on Penalties Article 31 With respect to those who are engaged in container transport business without a business licence for handling transport business, the competent department for communications shall order them to cease business operations, and penalties shall be imposed on them by the administrative department for industry and commerce.

Article 32 With respect to those who have received shipping charges in violation of these Provisions and the relevant laws and regulations of the State on commodity prices, they shall be penalized by the department for the control of commodity prices.

Article 33 With respect to those who have violated the administration of transport documents, they shall be given an administrative warning or a pecuniary penalty by the competent department for communications in light of the seriousness of the cases.

Article 34 With respect to those who have disturbed the normal order of transportation or have expanded their scope of business without authorization, they shall be ordered by the competent department for communications to carry out rectification of their business, and shall be penalized by the administrative department for industry and commerce.

Article 35 In the event that the person concerned does not accept the decision on penalties, he/she may, within 15 days as of the first day after the receipt of the notice of the decision on penalties, appeal to the competent department immediately above the punishing department for reconsideration of the aforesaid decision on penalties. The competent department that has received the appeal for reconsideration shall, within 30 days (after receiving the appeal), make the decision on reconsideration. If the person concerned still does not accept the decision of the reconsideration, he/she may, within 15 days immediately after receiving the decision on reconsideration, bring a suit before a people's court. If the person concerned neither appeal for reconsideration, nor bring a suit before the people's court, nor execute the decision on penalties or the decision of the reconsideration within the prescribed period of time, the department that has made the decision on penalties may apply to the people's court for enforcement.

Chapter VI Supplementary Provisions Article 36 The right to interpret these Provisions resides in the Ministry of Communications. The Ministry of Communications may formulate the rules for implementation in accordance with these Provisions.

Article 37 These Provisions shall go into effect as of the date of promulgation.