With a view to pushing forward the construction of Shanghai international shipping center and China (Shanghai) Pilot Free Trade Zone, we have decided, in accordance with relevant laws, regulations and rules, to permit Chinese shipping companies to use wholly-owned or holding non-five-star-flag international navigation ships to deal in transportation incidental of containers of foreign import and export with Shanghai Port as international transit port between domestic ports opening to the outside world and Shanghai Port (hereinafter referred to as “trial service of transportation incidental”).  Relevant matters are hereby announced as follows:

I. From the date of promulgation of this Announcement, a Chinese shipping company going to launch trial service of transportation incidental, after completing filing formalities, may use its wholly-owned or holding non-five-star-flag international navigation ship to launch relevant service.

II. “Chinese shipping company” in this Announcement means the enterprise corporation registered within the territories dealing in international sea transport service with the Registration Certificate of International Liner Transportation Operation Qualification obtained according to the International Shipping Regulations of the People’s Republic of China.

III. Chinese shipping companies applying for trial service of transportation incidental shall lodge filing application to the Ministry of Transport. The filing application materials and procedure are as follows:

1. Filing Application for Chinese Non-five-star-flag International Navigation Ship Conducting Trial Service of Coastal Transportation Incidental (see Annex 1).

2. Copies of Chinese shipping company’s Industrial and Commercial Business License, Operational Permit of International Ship Transportation and Registration Certificate of International Liner Transportation Operation Qualification.

3. The Certificate of Registry, Certificate of Classification and documents of ship ownership relationship of the Chinese shipping company’s ship that is going to launch trial service of transportation incidental.

For a ship the Chinese shipping company owned indirectly through overseas enterprise with sole proprietorship, it is imperative to furnish documents of the Chinese shipping company making investment in the wholly-owned overseas enterprise, the certificate for the ship being wholly-owned or controlled by the very overseas enterprise and documents of the Chinese shipping company leasing the ship.

IV. The Ministry of Transport, after receiving the complete and valid filing materials mentioned above, will issue the Filing Certificate of Chinese Non-five-star-flag Ship Conducting Trial Service of Costal Transportation Incidental (see Annex 2).

V. The Chinese shipping company shall not arbitrarily sublease to others the ship approved through filing to conduct trial service. Once subleased, the ship shall be automatically disqualified for trial service from the date of the ship lease contract coming into effect.

VI. Except for ships filed according to this Announcement, any other non-five-star-flag ships shall not carry container cargo between Chinese ports, including the carriage of foreign-trade container cargo loaded on board at a domestic port and outbound through another domestic transit port, or entering through a domestic transit port and unloaded at another domestic port.  For violation of this Article, punishment shall be imposed according to the provisions of Article 45 and others of International Shipping Regulations of the People’s Republic of China.

     The Announcement is hereby made.

Annex:

 1. Filing Application for Chinese Non-five-star-flag International Navigation Ship Conducting Trial Service of Coastal Transportation Incidental

2. Filing Certificate of Chinese Non-five-star-flag International Navigation Ship Conducting Trial Service of Costal Transportation Incidental

Annex 1

Filing Application for Chinese Non-five-star-flag International Navigation Ship Conducting Trial Service of Coastal Transportation Incidental

Annex 2

Filing Certificate of Chinese Non-five-star-flag International Navigation Ship Conducting Trial Service of Costal Transportation Incidental

Attached

List of Chinese Non-five-star-flag International Navigation Ship Conducting Trial Service of Transportation Incidental