Provisions on Old and Worn-out Transportation Vessels

Chapter I General Provisions

Article 1 The Provisionsare formulated to strengthen the management of old and worn-out transportation vessels, optimize waterborne transportation structure, improve overall performance of fleets, safeguard maritime traffic safety, and enhance the sound development of shipping industry.

Article 2 The Provisions shall apply to sea-going and inland transportation vessels registered within the People’s Republic of China.

Article 3 For the purpose ofThe Provisions, the following terms are defined as

1. Age of vessel means the duration from the completion date of the vessel topresent;

2. Age of purchased or bare chartered vessel flying foreign flags means the duration from the completion date of the vessel to the certification date of Machinery & Electronics Products Import Permit or Automatic Import Permit by commerce administration under the State Council, or by the authorized departments or institutions;

3. Old and worn-out transportation vessel means a vessel engaged in maritime transportation older than the upper limits prescribed in Article 4 and 5 of The Provisions;

4. Scrapped vessel means a vessel unable to engage in maritime transportation for good;

5. Scrapped steel vessel means a steel vessel unable to engage in maritime transportation for good;

6. Single-hull oil tanker means an oil tanker (oil barge included) with no double-hull hold and wing tank installed in accordance with national provisions on ship survey.

Article 4

Old and worn-out sea-going vessels are categorized as follows:

1. Category 1: High speed craft (HSC) aged over 10 years;

2. Category 2: Ro-Ro Ship, cargo and passenger ship, passenger ferry, cargo and passenger ferry (passenger train ferry included), sightseeing ship, and passenger ship aged over 10 years;

3. Category 3: Oil tanker (tar oil tanker included), bulk chemical tanker, and liquid petroleum gas tanker aged over 12 years;

4. Category 4: Bulk carrier and ore carrier aged over 18 years;

5. Category 5: Ro-Ro cargo ship, bulk cement carrier, refrigerator ship, general cargo ship, multi-purpose ship, container ship, timber cargo ship, tug boat, push boat, and barge, etc. aged over 20 years.

Article 5

Old and worn-out inland vessels are categorized as follows:

1. Category 1: High speed craft (HSC) aged over 10 years;

2. Category 2: Ro-Ro Ship, cargo and passenger ship, passenger ferry, cargo and passenger ferry (passenger train ferry included), sightseeing ship, and passenger ship aged over 10 years;

3. Category 3: Oil tanker (tar oil tanker included),bulk chemical tanker, and liquid petroleum gas tanker aged over 16 years;

4. Category 4: Bulk carrier and ore carrier aged over 18 years;

5. Category 5: Ro-Ro cargo ship, bulk cement carrier, refrigerator ship, general cargo ship, multi-purpose ship, container ship, timber cargo ship, tug boat, push boat, and barge, etc. aged over 20 years.

Article 6 Old and worn-out transportation vessels shall be managed on the basis of categorized technology nationwide. Mandatory scrapping system shall apply to vessels reaching the age limitation.

Article 7 Transport administrations at county level or above shall manage old and worn-out transportation vessels in terms of their market access and operation in accordance with The Provisions and other relevant regulations. Routine affairs may be authorized to the affiliated shipping management agencies.

Maritime Safety Administrations (MSAs) shall oversight the safety of old and worn-out transportation vessels in accordance with relevant laws, administrative regulations and The Provisions.

Chapter II Management of Ship Purchase,Bare Charter and Alteration

Article 8 Purchased or bare chartered foreign-flagged ships engaged in maritime transportation shall comply with the age limit prescribed in the appendix of The Provisions. The hull, main electric equipment, safety devices and anti-pollution installations shall be in conformity with the statutory survey specifications.

The ship hull of a purchased or bare chartered foreign-flagged oil tanker shall comply with Annex I to the International Convention for the Prevention of Pollution from Ships in 1973, amended by 1978 Protocol (MARPOL 73/78).

Article 9 For the purpose of The Provisions, purchased or bare chartered foreign-flagged ships include foreign-flagged ships already purchased or rented without valid Ship Survey Certificate and Certificate of Vessel Nationality in China, as well as foreign-flagged vessels purchased throughauction.

Article 10 Foreign-flagged scrapped steel ships shall not be purchased or bare chartered for maritime transportation by any organization or individual.

Article 11 Foreign-flagged vessels exceeding the age limit for mandatory scrapping prescribed in The Provisions shall not engage in maritime transportation in China.

Article 12 For China-flagged transportation ships transferred from purchased or bare chartered foreign-flagged ships, their purchasers or charterers shall acquire information on age and technical conditions of the ships and comply with the following transferring procedures:

1. Prior to the purchase or bare charter of foreign-flagged vessels of Category 1, 2 and 3, an application shall be submitted to transport administrations at county level or above for additional transportation capacity and be approved by the Ministry of Transport (MOT) in accordance with domestic provisions.

2. After the purchase or bare charter of foreign-flagged vessels, an initial survey shall be applied to ship survey institutions approved by MSAs for ShipSurvey Certificate.

3. After obtaining the Ship Survey Certificate, ship registration and bare charter registration shall be applied to MSAs for Vessel Ownership Registration Certificate and Certificate of Nationality, or Certificate of Bareboat Charter Registration and interim Certificate of Nationality.

4. After obtaining Certificate of Nationality or Certificate of Bareboat Charter Registration and interim Certificate of Nationality, for domestic maritime transportation, an application shall be submitted to transport administrations at county level or above for the License for Operation; for international maritime transportation, filing with MOT 15 days prior to operation shall be carried out and a documentary proof shall be obtained.

Article 13 Ship survey institutions shall, in accordance with relevant technical code forstatutory survey and the Provisions, carry out survey onpurchased or bare chartered foreign-flagged vessels.

Article 14 Ship registry administrations shall, in accordance with relevant regulations on ship registration and the Provisions, carry out registration onpurchased or bare chartered foreign-flagged vessels.

Article 15Transport administrations at county level or above shall, in accordance with relevant provisions on maritime transportation qualification management and the Provisions,carry out assessment and approval of applications for maritime transportation. The License for Operation or the documentary filing proof shall not be issued to the unqualified after the assessment.

Article 16 Vessels of Category 4 and 5 shall not be altered into Category 1, 2 or 3 for maritime transportation. Vessels of Category 3 shall not be altered to another type within the category for maritime transportation.

Article 17 The alteration of old and worn-out transportation vessels of Category 1, 2 or 3 shall apply for permission from the transport administration in accordance with relevant provisions on transportation capacity alteration.

Construction survey shall be applied to ship survey institutions approved by MSAs for the alteration of old and worn-out transportation vessels.

The Ship Survey Certificate issued to old and worn-out transportation vessels by ship survey institutions shall be noted of the date of alteration, with the date of build unchanged.

Article 18 For old and worn-out transportation vessels altered into other categories prescribed in The Provisions, the age limit for special periodical survey and mandatory scrapping shall comply with the provisions for other categories.

Chapter III Operation Management

Article 19 Ship owners or operators shall take effective measures to strengthen follow-up management of old and worn-out transportation vessels and shorten maintenance duration, and the insulation resistance measurement of all electric installations.

Article 20 Whereas ship owners or operators change the purpose or navigation areas of old and worn-out transportation vessels, an application for interim survey shall be submitted to ship survey institutions approved by MSAs. During the interim survey, the load line, passenger capacity, ship construction and safety performance of equipment shall be verified and the gross tonnage and net tonnage shall be re-measured if necessary.

Article 21 Old and worn-out vessels engaged in domestic transportation shall submit, in addition to relevant safety certificates, License for Operation to MSAs for verification while applying for port clearance.

For those without submitting valid certificates, MSAs shall not proceed with their port clearance; for those without submitting License for Operation, the transport administration shall be notified additionally.

Article 22 MSAs shall strengthen supervision and inspection to China-flagged old and worn-out vessels engaged in international transportation and foreign-flagged transportation vessels calling China ports which reach the age limit for old and worn-out vessels prescribed in The Provisions.

Article 23 For old and worn-out transportation vessels in unseaworthy state or those impede or may impede maritime traffic safety, MSAs shall, in accordance with relevant laws and administrative regulations, prohibit its port entry and exit, or oblige the vessels to suspend, detour or steer to designated location.

Article 24 Ship owners or operators shall, in accordance with relevant national provisions, apply to ship survey institutions approved by MSAs for periodical survey on old and worn-out transportation vessels in operation. The unqualified vessels after survey shall not be engaged in maritime transportation.

Article 25 For old and worn-out transportation vessels which reach the age limit for special periodical survey prescribed in the Appendix of The Provisions and are still to be engaged in maritime transportation,ship owners or operators shall, 6 months prior to or after the date of reaching the limit, apply to ship survey institutions approved by MSAs for special periodical survey, obtain Ship Survey Certificate accordingly and file with the transportation administration which granted approval for maritime transportation .

Article 26 For old and worn-out transportation vessels which pass the special periodical survey and continue with maritime transportation, ship owners or operators shall apply annually for the periodical survey 1 year since its initial special periodical survey, obtain Ship Survey Certificate accordingly and file with the transportation administration which granted approval for maritime transportation.

Transport administrations at county level or above shall notify MSAs when finding any technical condition of old and worn-out transportation vessels that may impede navigation safety.

Whereas any technical condition may impede navigation safety, MSAs shall oblige ship owners or operators to apply to ship survey institutions for interim survey.

Article 27 Old and worn-out transportation vessels without applying for special periodical survey as prescribed in Article 25 and 26 of The Provisions or failing the survey, shall be scrapped.

Article 28 Vessels reaching the age limit for mandatory scrapping prescribed in the Appendix of The Provisions shall be scrapped.

The validity of Ship Survey Certificate and License for Operation shall not exceed the age limit for mandatory scrapping prescribed in the Appendix of The Provisions.　

Article 29 The License for Operation or documentary filing proof of the vessel shall be invalid upon scrapping. The ship owner or operator shall submit the License for Operation to its certification authority for deregistration within 15 days upon scrapping. The Ship Survey Certificate shall be remarked with "Not for Maritime Transportation" by the certification authority.

　Article 30 Vessels already scrapped shall be prohibited from maritime transportation.

Vessels shall not be assembled by using the equipment and components from scrapped ones and engaged in maritime transportation.

Article 31 The alteration from scrapped vessels into pontoons, waterborne entertaining or other non-transportation facilities shall comply with relevant national regulations.

Chapter IV Supervision and Punishments

Article 32Transport administrations at county level or above and MSAs shall, in accordance with relevant laws, administrative regulations and rules, exercise supervision and inspection on old and worn-out transportation vessels.

Ship owners or operators shall submit relevant certificates, documents or other materials without refusal, concealment or fraud.

Article 33Maritime transportation in violation against Article 12.4 of The Provisions shall be subject to administrative punishments in accordance with Article 26.1 of Administrative Regulation of the People's Republic of China on Waterway Transportation.

Article 34 Scrapped vessels without submitting License for Operation to the certification transport administration or commercial maritime transportation without approval, in violation of Article 29 ofThe Provisions shall be subject to administrative punishments in accordance with Article 26.1 of Administrative Regulation of the People's Republic of China on Waterway Transportation.

Article 35 Ship owners or operators in violation of relevant provisions on ship registration and survey of The Provisions shall be subject to administrative punishments by MSAs in accordance with relevant laws, administrative regulations and rules.

Article 36Staff of transportation administrations and MSAs involved in duty negligence, malpractice for private purposes, power abuse shall be subject to disciplinary punishments.

Chapter V Supplementary Provisions

Article 37 MOT may, for the purpose of protecting national interests and enhancing safety management, temporarily adjust relevant ship age limits prescribed in The Provisions.

Article 38 For the purpose of marine environmental protection, single-hull oil tankers which have already been put into operation but not reached the mandatory scrapping age limit shall be phased out within a limited time frame. Specific time and scope of the phase-out shall be provided by MOT separately.

Article 39The Provisions shall not apply to vessels only engaged in maritime engineering projects as well as tugs and working boats, etc. operating within harbor areas.

The Provisions shall apply to vessels mentioned in the above paragraph and other non-commercial vessels once engaged in maritime transportation.

Article 40 For vessels of Category 1 or 2 engaged in transportation between domestic ports and foreign ports, the age limit shall be defined by both parties.

Article 41 The interpretation ofThe Provisions shall reside with MOT.

Article 42The Provisions shall be implemented since 1 August 2006. Administrative Provisions on Old and Worn-out Transportation Vessels promulgated by Ministry of Communications (Order of MOC No. 2 2001) on 9 April 2001 shall be abrogated on the same date.

Appendix I

Age Limits for Seagoing Vessels

Appendix II

Age Limits for Inland Vessels

(All information published in this website is authentic in Chinese. English is provided for reference only.)