China issued a State Council decree updating the Regulations of the People’s Republic of China on International Maritime Transportation last weekend (29 September). It anticipates the US Trade Representative intention to impose port fees targeting China-linked tonnage from 14 October.
The International Chamber of Shipping’s (China) Liaison Office has issued the following guidance to the key amendment, which has been perceived as a direct response to the possible US actions:
Amendment to Article 46 (Renumbered as Article 48)
This amendment introduces measures for addressing violations of maritime agreements and discriminatory actions:
(1(1)For Violations of Maritime Agreements:
“If a country or region with which the People’s Republic of China has concluded or jointly participates in international maritime-related treaties or agreements violates the provisions of such treaties or agreements, thereby causing the People’s Republic of China to lose or suffer damage to the benefits it enjoys under the treaty or agreement, or obstructs the realization of the objectives of the treaty or agreement, the Government of the People’s Republic of China has the right to request the government of the relevant country or region to terminate the aforementionedbehaviour, take appropriate remedial measures, and may suspend or terminate the performance of relevant obligations under the treaty or agreement in accordance with the provisions thereof.”
(2)For Discriminatory Actions:
“If any country or region adopts or assists, supports, or takes discriminatory prohibitions, restrictions, or other similar measures against operators, ships, or crew members engaged in international maritime transportation and its auxiliary businesses of the People’s Republic of China, except where sufficient and effective remedies are provided by relevant treaties or agreements, the Government of the People’s Republic of China shall, based on actual circumstances, take necessary countermeasures. These measures may include but are not limited to charging special fees for ships of such country or region docking at Chinese ports, prohibiting or restricting the entry and exit of such country’s or region’s ships from Chinese ports, and prohibiting or restricting organizations and individuals from such country or region from obtaining data, information, or conducting international maritime transportation and its auxiliary businesses related to Chinese ports.”
The amendment to Article 46 has garnered significant attention within the maritime industry. According to authoritative sources consulted by the ICS (China) Liaison Office, this amendment is seen as a direct response to the U.S. “301 investigation” and its proposed fee imposition targeting China’s maritime sector.
The U.S. “301 investigation” measures have been deemed discriminatory against Chinese shipowners and a violation of the 2003 China-U.S.
Maritime Agreement, particularly Article 6, which ensures reciprocal treatment in the imposition of taxes and fees.
Under Article 6 of the agreement:“The taxes and fees imposed by one party on the vessels of the other party shall not be less than those imposed on the vessels of a third country under similar circumstances, ensuring reciprocal treatment.”
The United States Trade Representative (USTR) has proposed additional fees targeting Chinese-manufactured ships and shipowners, which, according to authoritative sources, undermine the principles of fairness and reciprocity agreed upon in the 2003 treaty.
In response, China reserves the right to implement reciprocal punitive measures, which may include:
•Imposing additional fees on U.S. ships docking at Chinese ports.
•Restricting or prohibiting U.S.-manufactured ships from accessing Chinese ports.
These measures aim to safeguard the interests of Chinese shipowners and ensure the continued enforcement of international maritime agreements.
Conclusion
It is anticipated that the Ministry of Transport, as the competent transportation department of the State Council, will soon update its Detailed Rules for the Implementation of the Regulations on International Maritime Transportation in light of these amendments.The China Liaison Office will closely monitor the developments and keep the members updated.
