State Council, Regulations for the Administration of Transport by Domestic Waterways

国务院国内水路运输管理条例

November 08, 2012 | BY

CLP Temp &

Foreign investment not allowed in the domestic waterway transport sector.

Clp Reference: 4500/12.10.13 Promulgated: 2012-10-13 Effective: 2013-01-01

Promulgated: October 13 2012

Effective: January 1 2013

Applicability: Anyone engaging in transport by domestic waterways or ancillary waterway transport business shall comply with these Regulations.

For the purposes of these Regulations, the term “transport by domestic waterways” (Waterway Transport) means for-profit passenger and cargo transport under which the ports of departure, call and destination are all located within navigable waters that are under the jurisdiction of the People's Republic of China.

For the purposes of these Regulations, the term “ancillary waterway transport business” means business activities involving the direct provision of services for Waterway Transport, such as ship management, ship agency, waterway passenger transport agency and waterway cargo transport agency (Article 2).

The provisions of these Regulations on foreign flagged vessels shall apply mutatis mutandis to vessels flagged in the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan, unless otherwise provided by the State Council (Article 16).

Main contents: A foreign enterprise, other foreign economic organisation or a foreign individual may not engage in Waterway Transport business, or engage in Waterway Transport business in a disguised manner by such means as leasing PRC flagged vessels or shipping space.

The preceding paragraph shall apply mutatis mutandis to enterprises, other economic organisations and individuals from the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan, unless otherwise provided by the State Council (Article 11).

A Waterway Transport operator may not use a foreign flagged vessel to engage in Waterway Transport business. However, subject to the permission of the State Council's transport authority, where there are no PRC flagged vessels in the PRC that can satisfy the requirements of the transport applied for and the ports and waters where the vessel will berth are ports and waters that are open to foreign shipping, a Waterway Transport operator may temporarily use a foreign flagged vessel for transport for the period or number of voyages specified by the State Council's transport authority (Article 16).

Related legislation: Announcement on Strengthening the Administration of Access to the Market for the International Carriage of Passengers by Sea, Mar 12 2012; and Circular on Strengthening the Examination, Approval and Administration of Wholly Foreign-owned Shipping Companies, Aug 15 2011

clp reference:4500/12.10.13 promulgated:2012-10-13 effective:2013-01-01

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