The Decision of the Ministry of Transport on Amending the Implementation Rules of the International Maritime Regulations of the People's Republic of China has been adopted at the 12th ministerial meeting on June 12, 2019, and is hereby promulgated. It shall come into effect from the date of promulgation.

Decision of the Ministry of Transport on Amending the Implementation Rules of the International Maritime Regulations of the People's Republic of China

The Ministry of Transport has decided to make the following modifications to the Implementation Rules of the International Maritime Regulations of the People's Republic of China (Order No. 4 of 2017 of the Ministry of Transport):

1、 Delete the eighth item of Article 3, the first paragraph of Article 7, Article 8, Article 9, and Chapter 4.

2、 Change Article 21 to Article 19 and delete the phrase 'international ship management operator'.

3、 Article 26 shall be changed to Article 24, and the first paragraph shall be revised as follows: "If a non vessel operating common carrier (NVOCC) operator needs to entrust an agent to issue bills of lading or related documents, it shall entrust an international shipping operator, non vessel operating common carrier (NVOCC) operator, or international maritime auxiliary business operator who has obtained business qualifications or completed filing procedures in accordance with the law to act as an agent for the above-mentioned matters

4、 Change Article 34 to Article 32, and modify the third item to read: 'Issuing bills to overseas parent companies'.

5、 Change Article 43 to Article 37, and in the second item of the second paragraph, the phrase "the administrative department for industry and commerce and the pricing department" should be modified to "the market supervision and management department".

6、 Change Article 44 to Article 38, and in the first paragraph, modify "the administrative department for industry and commerce and the pricing department" to "the market supervision and management department".

7、 Artcle 51 shall be changed to Article 45, and the first paragraph shall be revised as follows: "If an investigation is conducted under the circumstances listed in Article 31 of these Implementation Rules, the members of the investigation team shall include personnel from the relevant transportation authorities who manage the business of the investigated person

8、 Article 52 shall be changed to Article 46, and a new paragraph shall be added as the second paragraph: "The Ministry of Transport or the transportation authorities of relevant provinces, autonomous regions, and municipalities directly under the Central Government shall record the illegal acts of international maritime transport and its ancillary business operators that violate the relevant provisions of the Maritime Transport Regulations and these Implementation Rules in their credit records, and publicize them in accordance with relevant laws and administrative regulations

9、 Change Article 53 to Article 47, and modify the term 'Administration for Industry and Commerce' to 'Market Supervision and Administration Department'.

0、 Change Article 54 to Article 48 and delete the words "international ship agent operator" and "Article 7".

11、 Change Article 58 to Article 52 and delete "Chapter 4 and Chapter 4 of these Implementation Rules".

Corresponding adjustments have been made to the article numbering and individual text.

This decision shall come into effect from the date of its announcement.

The Implementation Rules of the International Maritime Regulations of the People's Republic of China shall be revised and reissued in accordance with this decision.

Implementation Rules of the International Maritime Regulations of the People's Republic of China

(On January 20, 2003, the Ministry of Transport issued the first amendment based on the Decision of the Ministry of Transport on Amending the Implementation Rules of the International Maritime Regulations of the People's Republic of China on August 29, 2013. The second amendment was based on the Decision of the Ministry of Transport on Amending the Implementation Rules of the International Maritime Regulations of the People's Republic of China on March 7, 2017. The third amendment was based on the Decision of the Ministry of Transport on Amending the Implementation Rules of the International Maritime Regulations of the People's Republic of China on June 21, 2019.)

Chapter 1 General Provisions

Article 1: In accordance with the provisions of the International Maritime Regulations of the People's Republic of China (hereinafter referred to as the "Maritime Regulations"), these Implementation Rules are formulated.

Article 2: The Ministry of Transport and relevant local transportation authorities shall, in accordance with the provisions of the Maritime Transport Regulations and these Implementation Rules, manage international maritime transport business activities and auxiliary business activities related to international maritime transport on the principles of fairness, efficiency, and convenience, encourage fair competition, and prohibit unfair competition.

The meanings of the following terms in Article 3 of the Maritime Transport Regulations and these Implementation Rules are:

（1） International ship transport business refers to the activities carried out by international ship transport operators using their own or operated ships and cabins to provide international sea freight and passenger transport services, as well as related activities around their ships, passengers or goods carried out to complete these services, including signing relevant agreements, accepting bookings, negotiating and collecting ticket prices and freight charges, issuing tickets and bills of lading and other related transport documents, arranging passengers to board and disembark from ships, arranging cargo loading and unloading, arranging storage, conducting cargo handover, arranging transit transportation and ship entry and exit ports, etc.

（2） International shipping operators, including Chinese international shipping operators and foreign international shipping operators. Among them, China International Ship Transport Operators refer to Chinese corporate entities that have obtained the International Ship Transport Operation License in accordance with the Maritime Transport Regulations and these Implementation Rules to operate international ship transport business; Foreign international shipping operators refer to foreign enterprises established in accordance with foreign laws to operate international shipping services entering and leaving Chinese ports.

（3） International liner shipping refers to the regular international transportation of goods or passengers by sea between fixed ports using self owned or operated vessels, or in the manner specified in Article 11 (3) of the Maritime Transport Regulations.

（4） Non vessel operating common carrier (NVOCC) business refers to the business specified in Article 7, Paragraph 2 of the Maritime Transport Regulations, including the following activities carried out around the goods it carries to complete the business:

 (1) Entering into an international contract of carriage of goods with the shipper as a carrier;

(2) Receive and deliver goods as a carrier;

(3) Issuing bills of lading or other transportation documents;

(4) Collect freight and other service fees;

(5) Booking and handling consignment of goods to international shipping operators or other transportation mode operators;

(6) Pay for shipping or other transportation costs;

(7) Container unpacking and consolidation services;

(8) Other related businesses.

（5） Non vessel operating common carrier (NVOCC) operators, including Chinese NVOCC operators and foreign NVOCC operators. The operator of China's non vessel operating common carrier (NVOCC) business refers to a Chinese enterprise legal person who has obtained the qualification to operate NVOCC business in accordance with the provisions of the Maritime Transport Regulations and these Implementation Rules; Foreign non vessel operating common carrier (NVOCC) operators refer to foreign enterprises established in accordance with foreign laws and qualified to operate non vessel operating common carrier (NVOCC) services for goods entering and leaving Chinese ports in accordance with the relevant provisions of the Maritime Transport Regulations and these Implementation Rules.

（6） International ship agent operator refers to a Chinese enterprise legal person established in accordance with Chinese law to engage in the business stipulated in Article 23 of the Maritime Transport Regulations.

（7） International ship management operator refers to a Chinese enterprise legal person established in accordance with Chinese law to engage in the business stipulated in Article 24 of the Maritime Transport Regulations.

（8） Foreign resident representative offices refer to non-commercial institutions established by foreign enterprises or other economic organizations within the territory of China in accordance with the law to carry out publicity, promotion, consultation, and liaison activities for their dispatched offices.

（9） The enterprise business registration document refers to the business license or certificate of establishment issued by the enterprise registration authority or relevant authorities in the country where the enterprise is located. If the business registration documents of overseas enterprises are photocopies, there must be a notarized document from the enterprise registration authority confirming or proving that the photocopies are consistent with the originals on the photocopies.

（10） A liner conference agreement refers to various agreements entered into between members of a liner conference and between liner conferences, as defined in the United Nations Convention on the Code of Conduct for Liner Conferences of 1974.

（11） Operation agreement refers to an agreement between two or more international liner shipping operators to increase or decrease vessel capacity on one or more routes for the purpose of stabilizing or controlling freight rates, as well as other agreements that coordinate the joint actions of international liner shipping operators, including meeting minutes with the above-mentioned nature; Agreements on joint use of ships, joint use of port facilities, and other cooperative operations, as well as various alliance agreements and joint venture agreements, entered into by two or more international liner shipping operators to improve operational efficiency.

（12） Freight rate agreement refers to an agreement between two or more international liner shipping operators regarding the charging items and their rates, freight rates or surcharges, including meeting minutes with the above content.

（13） Publicizing freight rates refers to the freight rates stated on the tariff books of international liner shipping operators and non vessel operating common carrier (NVOCC) operators. The freight rate is composed of freight rates, freight rate rules, and regulations that carriers and shippers should comply with.

（14） Agreed freight rates refer to the freight rates agreed upon between international liner shipping operators, shippers, and non vessel operating common carrier (NVOCC) operators, including freight rates and related elements. The agreed freight rate is established in writing in the form of a contract or agreement.

（15） The certificate of professional qualification refers to the personal resume of the certified person with more than 3 years of experience in international maritime transportation or international maritime transportation auxiliary business activities. The personal resume must be notarized by a notary public.

Chapter 2: Operators of International Maritime Transport and Its Auxiliary Services

Article 4: Chinese enterprise legal persons applying to operate international maritime transport business shall meet the conditions stipulated in Article 5 of the Maritime Transport Regulations, taking into account the international maritime market competition situation announced by the Ministry of Transport and the national policies on the development of the international maritime transport industry.

The Ministry of Transport shall promptly publish on its government website and other appropriate media the competitive situation of the international maritime market and the national policies on the development of the international maritime transport industry. The above situation and policies, which have not been announced, shall not be used as reasons for rejecting the application.

Article 5: Chinese enterprise legal persons applying to operate international ship transportation business shall submit an application to the Ministry of Transport, submit relevant materials, and at the same time, copy the application materials to the transportation department of the provincial, autonomous region, or municipality directly under the Central Government where the enterprise is located. The application materials should include:

（1） Application form;

（2） Copy of the applicant's business registration documents and articles of association;

（3） Copy or photocopy of the ship ownership certificate, nationality certificate, and statutory inspection certificate;

（4） Copies of the prescribed international ship security certificate, safety management certificate, and proof of compliance with the shipping company's safety and pollution prevention capabilities;

（5） Sample of bill of lading, ticket or multimodal transport document;

（6） Qualification certificate for senior business management personnel in accordance with the regulations of the Ministry of Transport.

The transportation departments of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall review and provide opinions on the relevant materials upon receipt, and shall submit the opinions to the Ministry of Transport within 10 working days from the date of receipt of the relevant materials.

After receiving the application materials from the applicant, the Ministry of Transport shall, within 30 working days from the date when the application materials are complete and complete, conduct an examination in accordance with the provisions of Article 5 and Article 6 of the Maritime Transport Regulations, and make a decision on whether to grant or not to grant permission. If the decision is made to grant permission, the applicant shall be issued an International Ship Transport Operation License; If it is decided not to grant permission, the applicant shall be notified in writing and the reasons shall be provided.

Enterprises that have obtained the International Ship Transport Operation License shall ensure that the relevant certificates and proofs listed in this article remain legally valid during the operation of international ship transport business.

Article 6: If Chinese international shipping operators establish branch offices within the territory of China, the procedures stipulated in Article 5 of these Implementation Rules shall apply. The application materials should include:

（1） Application form;

（2） Copy of the business registration documents and articles of association of the parent company;

（3） Copy of the International Ship Transport Operation License of the parent company;

（4） Confirmation document from the parent company regarding the business scope of the branch;

（5） Qualification certificate for senior business management personnel who meet the requirements of the Ministry of Transport.

Branches of Chinese international shipping operators may provide services such as handling port entry and exit procedures, arranging port operations, accepting bookings, issuing tickets or bills of lading, and collecting freight charges for ships owned or operated by their parent companies.

Article 7: Enterprises engaged in international ship agency business shall report their enterprise name, registered address, contact information, and a copy of the Enterprise Legal Person Business License to the Ministry of Transport within 30 days after opening. The Ministry of Transport regularly publishes the names of international ship agency operators on its government website or authorized websites.

If an enterprise engaged in international ship agency business changes its enterprise information or ceases to engage in international ship agency business activities, it shall file with the Ministry of Transport within 15 days of the information change or cessation of business activities.

Article 8: International shipping operators applying to operate international liner shipping services in and out of Chinese ports shall submit an application to the Ministry of Transport and submit the materials specified in Article 12 of the Maritime Transport Regulations. The Ministry of Transport shall conduct audits in accordance with Article 12 of the Maritime Transport Regulations. Those who are registered will be issued an International Shipping Operation Qualification Registration Certificate. If the application materials are untrue or incomplete, registration shall not be granted, and the applicant shall be notified in writing and the reasons shall be explained.

After obtaining the qualification to operate international liner shipping services in and out of Chinese ports in accordance with the law, the Ministry of Transport shall publish the name of the international liner shipping operator and its bill of lading format sample on its government website or authorized website.

Enterprises that have obtained the International Shipping Operation Qualification Registration Certificate shall ensure that the relevant certificates and proofs remain legal and valid during the operation of international shipping business.

Article 9: Those who apply for the registration of bills of lading for non vessel operating common carrier (NVOCC) operators shall submit an application for bill of lading registration to the Ministry of Transport, submit relevant materials, and at the same time, copy the application materials to the transportation department of the province, autonomous region, or municipality directly under the Central Government where the enterprise is located or where the designated contact agency of the foreign NVOCC operator is located. The application materials should include:

（1） Application form;

（2） Copy of enterprise business registration documents;

（3） Sample bill of lading format;

（4） Copy of bank voucher, original guarantee letter or guarantee liability insurance for the deposit that has been deposited.

If the applicant is a foreign non vessel operating common carrier (NVOCC) operator, they shall also submit relevant materials of their designated contact agency as stipulated in Article 22 of these Implementation Rules.

The transportation departments of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall review the relevant materials upon receipt, provide opinions, and submit the relevant opinions to the Ministry of Transport within 7 working days from the date of receipt of the copied application materials.

After receiving the applicant's materials, the Ministry of Transport shall conduct an examination in accordance with Article 7 and Article 8 of the Maritime Transport Regulations within 15 working days from the date when the application materials are complete and complete. If the review is qualified, the bill of lading will be registered and the "Non Vessel Operating Common Carrier Business Qualification Registration Certificate" will be issued; If it is unqualified, the party concerned shall be notified in writing and the reasons shall be given.

Enterprises that obtain the Non Vessel Operating Common Carrier (NVOCC) Business Qualification Registration Certificate through margin guarantees and margin liability insurance shall have the same validity period as the guarantee or liability insurance.

Article 10: Foreign operators of non vessel operating common carrier (NVOCC) business who have obtained business qualifications in accordance with foreign laws and have legal financial responsibility guarantees may not deposit a deposit with banks within China when applying to engage in NVOCC business entering and leaving Chinese ports in accordance with the Maritime Transport Regulations and these Implementation Rules. However, in order to ensure that foreign non vessel operating common carrier (NVOCC) operators settle debts and pay fines arising from their failure or improper performance of carrier obligations, and meet the requirements of Article 8 (3) of the Maritime Regulations, the government regulatory department of the foreign NVOCC operator and the Chinese government transportation regulatory department shall sign an agreement on the implementation of financial liability guarantee.

Article 11: If international liner shipping services are not conducted in Chinese ports, but goods are contracted, bills of lading or other transport documents are issued, and freight charges are collected within the territory of China, international cargo transportation services for entering and leaving Chinese ports are provided by leasing the vessel space of international liner shipping operators; For those who use the feeder services provided by international shipping operators to undertake cargo at Chinese ports and transport it to foreign ports for transit, they shall obtain the qualification for operating non vessel operating common carrier (NVOCC) business in accordance with the relevant provisions of these Implementation Rules. Except for the circumstances stipulated in Article 11, Paragraph 3 of the Maritime Transport Regulations.

Article 12: Branches of Chinese non vessel operating common carrier (NVOCC) operators within the territory of China shall, in accordance with

According to Article 8, Paragraph 2 of the Maritime Regulations, a deposit shall be paid, or a deposit guarantee or liability insurance shall be obtained, and registration shall be made in accordance with Article 9 of these Implementation Rules to obtain the Non Vessel Operating Common Carrier Business Qualification Registration Certificate. The following materials should be submitted for registration application:

（1） Application form;

（2） Copy of the business registration documents of the parent company and its branches;

（3） Copy of the "Non Vessel Operating Common Carrier Business Qualification Registration Certificate" of the parent company;

（4） Confirmation document from the parent company confirming the business scope of the branch;

（5） Copy of bank voucher, original guarantee letter or guarantee liability insurance for the deposit that has been deposited.

Article 13: When a non vessel operating common carrier (NVOCC) operator applies for bill of lading registration, the name of the bill of lading header shall be consistent with the applicant's name.

If the name of the bill of lading header does not match the name of the applicant, the applicant shall provide relevant materials indicating that the bill of lading was indeed made and used by the applicant, and attach a written statement from the applicant stating that they are responsible as the carrier for registering the bill of lading.

Article 14: If a non vessel operating common carrier (NVOCC) operator uses two or more types of bills of lading, all types of bills of lading shall be registered.

If there is a change in the registered bill of lading of international liner shipping operators and non vessel operating common carrier operators, the new bill of lading sample format shall be filed with the Ministry of Transport 15 days before the date of use of the new bill of lading.

Article 15: Applicants for operating non vessel operating common carrier (NVOCC) business shall pay a deposit, obtain a deposit guarantee or liability insurance, and register the bill of lading. After obtaining the qualification for operating NVOCC business in accordance with the law, the Ministry of Transport shall publish the name of the NVOCC business operator and its bill of lading format sample on its government website or authorized website.

Article 16 The NVOCC business operator shall, according to law, deposit a deposit in the special account of the NVOCC business operator opened by the commercial bank designated by the Ministry of Transport, and the interest on the deposit shall be calculated according to the corresponding deposit interest rate published by the People's Bank of China.

Article 17: The deposit deposited by non vessel operating common carrier operators shall be protected by national laws. Except for the following circumstances, the margin shall not be used:

（1） If the operator of non vessel operating common carrier (NVOCC) business fails to perform its obligations as a carrier or performs its obligations improperly, and according to the effective judgment of the judicial authority or the arbitration award of the judicial authority, it should bear the liability for compensation, but the operator of NVOCC business refuses to execute it;

（2） Those who have been fined by the competent transportation department in accordance with the law, but the non vessel operating common carrier business operator refuses to comply.

If there are situations in the preceding paragraph (1) and (2) that require transfer from the security deposit, it shall be done in accordance with the law.

If the deposit of a non vessel operating common carrier (NVOCC) operator does not meet the amount stipulated in the Maritime Transport Regulations, the Ministry of Transport shall notify them in writing to make up for it.

If the operator of non vessel operating common carrier business fails to make up for the shortfall within 30 days from the date of receiving written notice from the Ministry of Transport, the Ministry of Transport shall cancel its business qualification in accordance with Article 10 of the Maritime Transport Regulations.

Article 18: If a non vessel operating common carrier (NVOCC) operator is disqualified from operating, applies for termination of operation, or terminates operation for other reasons in accordance with the law by the Ministry of Transport, it may apply to the Ministry of Transport for a refund of the deposit. The Ministry of Transport should publish the application on its government website for 30 days

During the public notice period, if the relevant parties believe that the non vessel operating common carrier (NVOCC) operator has the situation described in Article 17, Paragraph 1, Item (1) of these Implementation Rules and needs to take preservation measures for its security deposit, they shall obtain a property preservation ruling from the judicial authority within the above-mentioned period. From the date of preservation of the security deposit, the supervision procedure of the deposit account by the Ministry of Transport in accordance with the Maritime Transport Regulations shall end. The dispute shall be resolved by both parties through judicial procedures.

If the public notice period expires and there are no situations as stipulated in the preceding paragraph, the Ministry of Transport shall notify the deposit bank to refund the deposit and interest of the non vessel operating common carrier business operator, and confiscate the "Non Vessel Operating Common Carrier Business Qualification Registration Certificate" of the non vessel operating common carrier business operator.

Article 19: If a Chinese international shipping operator or a Chinese non vessel operating common carrier (NVOCC) operator undergoes any of the following changes, they shall file a record with the original qualification licensing and registration authority:

（1） Change the company name;

（2） Enterprise migration;

（3） Change of investor;

（4） Ceasing or terminating operations;

（5） Chinese vessels terminate international shipping operations.

If the enterprise name is changed, the original qualification licensing and registration authority shall issue a new relevant business license or business qualification registration certificate; If an enterprise terminates its operation, it shall return the relevant licenses and registration certificates to the original licensing and registration authorities.

Chapter 3 International Maritime Transport and Its Auxiliary Business Operations

Article 20: If an international liner shipping operator opens or suspends an international liner shipping route, or changes the international liner shipping vessel or schedule, it shall announce it on the media designated by the Ministry of Transport in accordance with Article 14 of the Maritime Transport Regulations and report it in accordance with regulations.

Article 21: Chinese international shipping operators who increase the number of operating vessels, including renting vessels through bareboat charter, shall file a record with the Ministry of Transport and obtain a certificate of filing 15 days before putting them into operation. The filing materials shall specify the company name, registered place, ship name, ship nationality, ship type, ship tonnage, and proposed operating route.

After receiving the filing materials, the Ministry of Transport shall issue a filing certificate within 3 working days.

Article 22: Foreign international shipping operators engaged in international liner shipping services in Chinese ports, as well as foreign non vessel operating common carrier (NVOCC) operators who entrust agents in China to provide international cargo transportation services to and from Chinese ports, shall appoint a liaison agency within China to represent the foreign enterprise in liaising with relevant departments of the Chinese government on management and legal matters stipulated in the Maritime Transport Regulations and these Implementation Rules. The contact agency can be a foreign-invested enterprise or a permanent representative office established by the foreign enterprise in China, or it can be another Chinese enterprise legal person or other economic organization with a fixed residence in China. The entrusted liaison agency shall file with the Ministry of Transport and submit the following documents:

（1） Contact institution manual, specifying the name, address, contact information, and contact person of the contact institution;

（2） Copy or photocopy of the power of attorney

（3） Copy of the agreement between the principal and the liaison agency;

（4） Copy of the business registration documents of the contact agency.

If the contact agency is a foreign-invested enterprise or permanent representative office of the foreign enterprise in China, it is not necessary to provide the documents specified in items (2) and (3) of the first paragraph of this article.

If there is a change in the matters stated in the contact agency or contact agency manual, it shall be filed with the Ministry of Transport within 15 days from the date of the change.

Article 23: No unit or individual shall use the bills of lading already registered by international liner shipping operators and non vessel operating common carrier operators without authorization.

Article 24: If a non vessel operating common carrier (NVOCC) operator needs to entrust an agent to issue bills of lading or related documents, it shall entrust an international shipping operator, non vessel operating common carrier (NVOCC) operator, or international maritime auxiliary business operator who has obtained business qualifications or completed filing procedures in accordance with the law to act as an agent for the above-mentioned matters.

The operators specified in the preceding paragraph shall not accept the commission of non vessel operating common carrier operators who have not registered the bill of lading and deposited a deposit, or obtained a deposit guarantee or deposit liability insurance, to issue bills of lading on their behalf.

Article 25: If international liner shipping operators agree on freight rates with shippers and non vessel operating common carrier operators, they shall do so in writing. The agreed freight rate number should be displayed on the bill of lading or relevant documents.

Article 26: International shipping operators shall not accept goods or containers provided by non vessel operating common carrier (NVOCC) operators who have not completed bill of lading registration and paid a deposit or obtained a deposit guarantee or deposit liability insurance.

Article 27 International liner shipping operators and non vessel operating common carrier (NVOCC) operators shall publish their ship agents and bill of lading issuing agents within China on the media designated by the Ministry of Transport. The announcement includes the name, registered address, domicile, and contact information of the agent. If there is a change in the agent, the above-mentioned matters shall be announced within 7 days before the effective date of the relevant agency agreement.

International liner shipping operators and non vessel operating common carrier (NVOCC) operators shall promptly file with the Ministry of Transport the names of media outlets that disclose their agency matters.

Article 28: International shipping operators shall, within 15 days from the date of the agreement, file with the Ministry of Transport in accordance with the following provisions for liner conferences, operating agreements, freight rate agreements, etc. involving Chinese ports:

（1） The agreement of the shipping association shall be filed by the shipping association on behalf of all its members engaged in maritime transportation to and from Chinese ports. When registering a shipping association, a list of its members should be provided at the same time.

（2） The operational agreements and tariff agreements between international shipping operators shall be separately filed by the international shipping operators who participate in the signing of the agreements.

Article 29: International ship management operators shall fulfill their obligations related to ship safety and pollution prevention in accordance with the provisions of the contract and relevant national regulations.

Article 30 International maritime and ancillary operators shall truthfully, accurately, completely, and timely submit relevant statistical information in accordance with the requirements of the relevant statistical reporting system.

Article 31: International ship agency operators and international ship management operators shall not engage in the following behaviors:

（1） Providing services at abnormal and reasonable fee levels that hinder fair competition;

（2） Secretly giving clients kickbacks outside of accounting books to undertake business;

（3） Abuse of dominant position, restricting the parties to the transaction from independently choosing international maritime auxiliary business operators, or inducing the parties to the transaction with their monopoly position in related industries, and excluding industry competition;

（4） Other unfair competition practices.

Article 32: Foreign international shipping operators and resident representative offices of foreign international shipping auxiliary enterprises shall not engage in business activities, including:

（1） Accepting bookings on behalf of its overseas parent company, issuing bills of lading or related documents from the parent company;

（2） Handle settlement or collect freight and other fees for the parent company;

（3） Issuing invoices for overseas parent companies;

（4） Consigning goods to international shipping operators as a shipper;

（5） Sign business contracts with clients in the name of foreign permanent representative offices.

Article 33: International container shipping operators shall report the sea price and surcharges of export containers from Chinese ports to foreign basic ports when reporting freight rates.

Article 34: Shipping conferences and freight rate agreement organizations conducting business in China shall comply with the international conventions, laws, regulations, rules, and relevant provisions that China has concluded or participated in, and shall not harm the fair competition order of the international maritime market.

Shipping associations and tariff agreement organizations should establish effective negotiation mechanisms with shippers' organizations within China.

Chapter 4 Supervision and Inspection

Article 35: The Ministry of Transport and relevant local transportation authorities shall supervise, inspect, and investigate the international maritime market in accordance with relevant laws, regulations, and these provisions.

International maritime transport operators and international maritime auxiliary business operators shall cooperate with supervision, inspection, and investigation, and truthfully provide relevant vouchers, documents, and other relevant information.

Article 36 International ship transport operators and non vessel operating common carrier operators shall implement the effective recorded freight rates. The competent transportation department of the State Council shall organize or authorize local transportation departments to conduct inspections on the implementation of fare registration based on the requests of stakeholders or at their own discretion.

Article 37: If interested parties believe that international maritime transport operators or international maritime auxiliary business operators fall under the circumstances stipulated in Article 28 of the Maritime Transport Regulations and Article 31 of these Implementation Rules, they may request the Ministry of Transport to conduct an investigation in accordance with Article 28 of the Maritime Transport Regulations. When requesting an investigation, a written investigation application should be submitted, with reasons explained and necessary evidence provided.

The Ministry of Transport shall evaluate the investigation application and make a decision on whether to conduct the investigation or not within 60 working days from the date of receiving the investigation application:

（1） If the Ministry of Transport considers that the reasons for the investigation application are insufficient or the evidence is insufficient, it shall decide not to investigate and notify the investigation applicant. The applicant may submit another investigation request after providing additional reasons or evidence.

（2） If the Ministry of Transport deems it necessary to conduct an investigation based on the evaluation conclusion or decides to conduct an investigation on its own in accordance with Article 28 of the Maritime Transport Regulations, it shall notify the relevant materials and evaluation conclusion to the market supervision and administration department of the State Council.

Article 38: The implementation of the investigation shall be carried out by an investigation team jointly established by the Ministry of Transport and the market supervision and administration department of the State Council (hereinafter referred to as the investigation authority).

The investigating authority shall notify the investigated person of the composition of the investigation team, the reasons for the investigation, the investigation period, and other relevant information. The investigated person shall make a defense on the investigation matter within 30 days after the notice of investigation is delivered.

If the respondent believes that a member of the investigation team has an interest in the applicant, respondent, or investigation matter, they have the right to request recusal. If the investigating authority considers the request for recusal to be valid, it shall adjust the members of the investigation team.

Article 39: When the investigated person accepts the investigation, they shall provide relevant data, materials, and documents as required by the investigation team. If it belongs to trade secrets, it should be raised to the investigation team. The investigation team shall keep written records for future reference.

The investigating authorities and investigators shall keep confidential the trade secrets of the investigated person.

If the investigated person discovers that the investigators have leaked their trade secrets and have sufficient evidence, they have the right to file a complaint with the investigating authority.

Article 40: The investigating authority shall consider the following factors when determining that the investigated person's "freight rate is lower than the normal and reasonable level":

（1） The tariff levels of most operators in the same industry and operators of the same scale as the surveyed individuals;

（2） The reasons for the respondent to implement this tariff level include cost composition, management level, and profit and loss situation;

（3） Is it targeted at specific competitors and aimed at excluding them.

Article 41: The investigating authority shall consider the following factors when determining whether "fair competition is harmed" or "the counterparty is harmed":

（1） Obstructing the free choice of carrier by passengers or shippers;

（2） Affects the normal travel or shipment of passengers or goods;

（3） Undertaking goods with secret kickbacks outside of accounts distorts market competition rules.

Article 42: Before making an investigation conclusion, the investigating authority may hold an expert consultation meeting to assess the degree of "harm to fair competition" or "harm to the counterparty".

The hired consulting experts shall not have any vested interests in the applicant or the respondent of the investigation.

Article 43: At the end of the investigation, the investigating authority shall make an investigation conclusion and notify the applicant and the investigated person in writing:

（1） If the basic facts are not established, the investigating authority shall decide to terminate the investigation;

（2） If the basic facts exist but do not cause substantial harm to fair competition in the market, the investigating authority may decide not to take prohibitive or restrictive measures against the investigated person;

The hired consulting experts shall not have any vested interests in the applicant or the respondent of the investigation.

（3） If the basic facts are clear and cause substantial damage to fair competition in the market, the investigating authority shall take restrictive and prohibitive measures against the investigated person in accordance with the provisions of the Maritime Transport Regulations.

Article 44: Before making a decision to adopt prohibitive or restrictive measures, the investigating authority shall inform the parties of their right to hold a hearing; If the parties request a hearing, they shall submit a written request to the investigating authority within 10 days from the date of receipt of the notice from the investigating authority; Those who fail to submit a hearing request within the prescribed time limit shall be deemed to have automatically waived their right to request a hearing.

Article 45: If an investigation is conducted under the circumstances listed in Article 31 of these Implementation Rules, the members of the investigation team shall include personnel from the relevant transportation authorities who manage the business of the investigated person.

For those who engage in illegal activities listed in Article 31 (3) of these Implementation Rules and cause substantial damage to the trading parties or competitors in the same industry, the investigating authority may take restrictive measures to limit their business expansion within a certain period of time.

Chapter 5 Legal Liability

Article 46: Those who violate the provisions of the Maritime Transport Regulations and these Implementation Rules and should be punished shall be punished in accordance with the provisions of Chapter 6 of the Maritime Transport Regulations and this chapter by the Ministry of Transport or the authorized transportation authorities of provinces, autonomous regions, and municipalities directly under the Central Government.

The Ministry of Transport or the relevant transportation authorities of provinces, autonomous regions, and municipalities directly under the Central Government shall record the illegal acts of international maritime transport and its auxiliary business operators that violate the relevant provisions of the Maritime Transport Regulations and these Implementation Rules in their credit records, and publicize them in accordance with relevant laws and administrative regulations.

Article 47: If a foreign permanent representative office falls under the circumstances specified in Article 32 of these Implementation Rules, the Ministry of Transport or the relevant transportation department of the provincial, autonomous region, or municipality directly under the Central Government may notify the relevant market supervision and administration department of the situation, and the market supervision and administration department shall impose penalties in accordance with Article 44 of the Maritime Transport Regulations.

Article 48: If the agreements of liner conferences, operating agreements, and tariff agreements are not filed with the Ministry of Transport in accordance with regulations, the Ministry of Transport shall impose penalties on the filers specified in Article 28 of these Implementation Rules in accordance with Article 40 of the Maritime Transport Regulations. If a shipping association fails to report in accordance with regulations, its members may be punished.

Article 49: If investigators violate regulations by disclosing confidential information of the investigated person, they shall be subject to administrative sanctions in accordance with the law; Those who cause serious consequences and violate the criminal law shall be held criminally responsible in accordance with the law.

Chapter 6 Supplementary Provisions

Article 50: The applicant may entrust an agent to handle the licensing and registration matters stipulated in the Maritime Transport Regulations and these Implementation Rules.

If an agent handles entrusted matters, they shall provide a power of attorney.

The notarized documents submitted by foreign applicants or investors shall be issued by the notary public or practicing lawyer in the country where the applicant or investor is located.

All types of written materials required by these implementation rules shall be written in Chinese. If other languages are used, a Chinese translation shall be attached.

Article 51: The specific requirements, reporting methods, and methods for the filing matters stipulated in the Maritime Transport Regulations and these Implementation Rules shall be handled in accordance with the regulations of the Ministry of Transport.

Article 52: Investors from the Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan who invest in international maritime transportation and related auxiliary businesses in mainland China shall be subject to the relevant provisions of the Maritime Transport Regulations.

Article 53: The specific methods for publishing freight rates and registering agreed freight rates as stipulated in Article 15 of the Maritime Transport Regulations shall be separately formulated by the Ministry of Transport.

Article 54: These Implementation Rules shall come into effect on March 1, 2003. The "Interim Management Measures for International Shipping Companies" issued by the Ministry of Transport on April 11, 1985, the "Regulations on International Ship Agency Management" issued on March 2, 1990, the "Regulations on International Liner Transport Management" issued on June 20, 1990, the "Implementation Rules for the Regulations on International Container Transport Management of the People's Republic of China" issued on June 9, 1992, and the "Management Measures for Permanent Representative Offices of Foreign Waterway Transport Enterprises" issued on October 17, 1997 were simultaneously abolished.

Source: Ministry of Transport