U.S. and China: no change in maritime competition laws

U.S. and China: no change in maritime competition laws    U.S. and Chinese officials involved in maritime regulation said there was agreement at a meeting last week that “there are no plans to change the competition laws in either country which grant antitrust immunity for ocean carriers.”
   But minutes from the Shanghai meeting between delegations headed by U.S. Maritime Administrator Sean Connaughton and Vice Minister Xu Zuyuan of China’s Ministry of Communications they also “emphasized the importance of international competition policy to avoid any negative effects on the shipping industry due to conflicts of law.”
   A wide range of issues were discussed including the following:
   ‘ Treatment of seafarers. China complained the U.S. visa system creates difficulties and inconveniences for Chinese seafarers on ships entering U.S. ports, and asked that seafarers visas be extended bilaterally for five years.
   ‘ U.S. exports to China. China’s delegation asked for elimination of a U.S. requirement that ships loaded in the United States and bound for China provide complete manifest information and shipper’s declaration to U.S. Customs and Border Protection to make shipment of goods more convenient.
   ‘ Grain transport in containers. Both countries said they would explore ways to boost transport of bulk grain by container, which might help alleviate container imbalances.
   * Problems U.S. non-vessel-operating common carriers are experiencing in China. Some NVOs have had branch offices temporarily shut down in China because of questions over whether they were properly licensed. U.S. NVOs today have to obtain a $21,000 rider that supplements their $75,000 FMC Bond in order to operate in China. The U.S. delegation would like to see U.S. NVOs be able to use that rider and FMC bond in order to participate in cross-trades from China. China said that would require an adjustment of a bilateral arrangement between the two countries. China also said that there should be an adjustment of the amount of the rider. That $21,000 rider used to be worth about 800,000 RMB — with the fall in the value of the dollar it is now only worth about 710,000 RMB. The two sides have agreed to discuss the issue further
   ‘ Wholly Foreign Owned Enterprise (WFOE) status for Matson Navigation. Matson began offering an eastbound service from Ningbo and Shanghai to Long Beach in 2006 as an extension of its Hawaii and Guam service. MarAd asked the Chinese side to approve Matson’s request for WFOE status by the end of the year. WFOEs, rather than partnerships with Chinese companies, have become increasingly popular among foreign businesses operating in China, and other transport companies, including APL, have WFOE status.
   The two sides have agreed to hold a Third Bilateral Maritime Consultative Meeting in the United States in 2008.