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Explanation on Measures on Ship Survey Companies Established by Foreign Ship Survey Institutions in China

1. The Relationship with other administrations and their provisions

In accordance with Decision of the State Council on the Administrative License Created for the Items of Administrative Examination and Approval to Be Really Needed for Retaining, the Maritime Safety Administration of People's Republic of China (China MSA) is the administration of administrative approvals of the ship survey company established by the foreign ship survey institution in China. The administrative approvals carried out by China MSA do not exempt the ship survey company from obligations to comply with other laws and provisions of the government authorities concerned in China. These companies shall go through corresponding procedures in accordance with the provisions of government authorities concerned in economic and trade, industry and commerce, taxation, etc. For details, whereas necessary, may consult relevant authorities.

2. The Definition of Offshore Installation (Article 3)

Offshore wind energy equipment, offshore oil and natural gas platform are Offshore Installation in accordance with Article 29 of Regulations of the People's Republic of China Governing Survey of Ships and Offshore Installations. Survey on offshore wind energy equipment, offshore oil and natural gas platform is the ship survey activity as defined in Article 3 of The Measures.

3. The scope of ship survey activities and permanent representative office (Article 5 / 6)

One foreign Ship survey institution can only establish one survey company in China, but it can establish branches or departments dealing with different kinds of ship survey activities. Before carrying out ship survey activities prescribed in Regulations of Registration and Management for Company Business Scope, but not in Article 3 of The Measures, Ship survey companies shall apply to the administration for approval.

Once the ship survey company is established, representative office of foreign ship survey institution shall be closed in principle. Only one representative office may be set up, whereas in real need, in a city without port, and shall not carry out survey activities. The foreign ship survey institution may apply for dependent accounting branches or offices in Beijing which shall not carry out survey activities.

4. Requirements of the ship survey company (Article 7)

The foreign organization applying for establishing Ship Survey Company in China shall be the ship survey institution recognized by state or local government.

5. Qualification and certificates requirements (Article 7/10/13)

The qualification requirements of Chinese citizen employed by foreign ship survey company for ship survey activities shall be the same as those employed by Chinese ship survey institution.

Surveyor qualification is not required for the personnel preparing the company establishment. Evidence of qualification mentioned in Article 10 refers to the document for the personnel position in the foreign ship survey institution.

The surveyors prescribed in Article 13.3 of The Measures include Chinese and foreign surveyors.

6. The person in charge of the ship survey activities (Article 8/13)

The person in charge of the ship survey activities takes the general responsibility for the ship survey quality in the company (or branch). The competent authority has no compulsory requirement on the position of the person in charge of the ship survey activities. However, if any survey incident mentioned in Article 18 or matters mentioned in Article 20 occur, the person in charge of the ship survey activities shall be fully authorized by the ship survey company to allocate necessary resources and bear the relevant legal liabilities. The obligation and rights of the person shall be stipulated clearly in the quality management system mentioned in Article 13.

7. The Authorization Documents by the Flag Administrations for the Statutory survey (Article 10)

The foreign ship survey institution authorized by several flag administrations for the statutory surveys, when applying for the first time, shall submit the authorization documents as follows:

(1). Authorization documents for the statutory surveys by the state that issued the certificate of the capacity of the ship survey institution;

(2). Authorization documents for the statutory surveys by the flag states besides the preceding states can be exempted temporarily, but the key information of all authorizations shall be submitted covering the following contents;

a. The name of the flag state;

b. The ship survey item of authorization with authorized time

c. Date for signature of authorization documents

d. Special requirements of the flag state.

The competent authority reserves the right of requiring the applicant to provide the authorization documents and files in whole or in part.

(3). The foreign ship survey institution, once obtaining new authorization after submitting the application or achieving the approval, shall report updated authorization to the administration.

8. Preparation Plan (Article 10)

Preparation plan refers to the description of the schedule and planned outcome of the company from preparation to operation, and has no requirement of a fixed format and illumination of the future business and expected turnover.