CHINA TO IMPLEMENT MARITIME RULES ON MARCH 1

CHINA TO IMPLEMENT MARITIME RULES ON MARCH 1    China’s Ministry of Communications has finally announced that its Regulations on International Maritime Transportation will become effective on March 1.
   But the Chinese authorities have still not determined whether, and how, their controversial Article 20 on the compulsory filing of tariffs and service contract rates will be implemented.
   China’s Regulations on International Maritime Transportation were originally due to be implemented in January 2002. The authorities postponed their implementation to consult the industry and the maritime authorities of other countries, including the U.S. Maritime Administration.
   A new set of implementing rules, issued in late January, provides the date of implementation of the rules, as well as detailed administrative procedures to be followed by ocean carriers, non-vessel-operating common carriers and other companies engaged in shipping to and from China.
   The U.S. National Industrial Transportation League and other industry bodies in the U.S. and Europe had expressed concerns over the compulsory filing of rates with Chinese state authorities for liner services to and from China.
   Article 20 of the main Regulations on International Maritime Transportation requires ocean carriers and NVOCCs to file    both “published rates” (tariff rates) and “negotiated rates” (service contract rates), but Chinese officials suggested in private talks with the industry that the rules would still protect the confidentiality of service contracts.
   In its implementing rules, the Chinese Ministry of Communications provides no clarification as to whether the requirement to file rates will still apply, and whether such rates would be disclosed only to government officials or to the general public.
   “The detailed rules relating to the tariff rate and negotiated rate filing which are provided in Article 20 of the Regulations on International Maritime Transportation shall be formulated by the Ministry of Communications,” the latest implementing rules state.
   The Chinese authorities have provided a partial exemption to non-Chinese NVOCCs from the requirement that they file a bond or financial deposit with the maritime competition authorities of China, when they already have bonds posted with the U.S. Federal Maritime Commission or other national authorities.
   The implementing rules detail numerous reporting requirements that are required from ocean carriers serving Chinese ports.