SHIPPERS’ ASSOCIATIONS ASKS SEPARATE TREATMENT UNDER NEW CHINESE LAW

SHIPPERS’ ASSOCIATIONS ASKS SEPARATE TREATMENT UNDER NEW CHINESE LAW    The American Institute for Shippers’ Associations has written to China’s Ministry of Communications to request that shippers’ associations be recognized and treated differently from non-vessel-operating common carriers and forwarders under the new Regulations on International Maritime Transportation.
   In comments submitted to the Chinese authorities, the Washington, D.C.-based shippers’ associations body asked the Chinese government to amend its implementing rules, and allow shippers’ associations to operate as “separate and distinct unregulated legal entities that assist small and medium-sized shippers.”
   The Chinese regulations do not contain any references to shippers’ associations.
   Shippers’ associations, common in the United States, have been active in the U.S./China ocean trade for years.
   The American Institute for Shippers’ Associations asked the Chinese authorities to permit shippers’ associations and not subject them to government regulations applicable to non-vessel-operating common carriers and forwarders.
   “American Institute for Shippers’ Associations submitted that such an amendment to the regulations would reflect existing commercial practices,” it said.
   In the United States, shippers’ associations do not have to comply with licensing and bonding regulatory requirements, unlike intermediaries, which are more tightly regulated.
   “To date, the Chinese government has allowed shippers’ associations to operate without regulation in the U.S./China trades,” said Ronald N. Cobert, general counsel to the American Institute for Shippers’ Associations.
   The Chinese authorities invited comments from industry and interested parties on its proposed implementing rules for the country’s new Regulations on International Maritime Transportation. The deadline for comments ended yesterday.
   The National Customs Brokers And Forwarders Association Of America, the International Association Of Non-Vessel Operating Common Carriers and the National Transportation League have also submitted comments on the Chinese maritime law to the Chinese authorities.