Regulations Governing The Approval and Administration of Direct Cross-Strait Sea Transport Between the Taiwan Area and the Mainland Area
Regulations Governing The Approval and Administration of Direct Cross-Strait Sea Transport Between the Taiwan Area and the Mainland Area

Promulgated on December 12, 2008

In case of discrepancies between the Chinese text and English translation, the Chinese text shall prevail.

Article 1
These Regulations are enacted pursuant to Article 28, Paragraph 3 of Article 29, and Paragraph 3 of Article 30 of the Act Governing Relations Between Peoples of the Taiwan Area and the Mainland Area.

Article 2
The ports opening for direct cross-strait transport between the Taiwan Area and the Mainland Area as follows:
1. International commercial ports.
2. Domestic commercial ports.
3. Industrial ports.
The ports referred to in the preceding paragraph shall be publicly announced after being reported to the Executive Yuan for designation by the Ministry of Transportation and Communications (MOTC), and published in a governmental gazette.

Article 3
A vessel approved to engage in direct cross-strait carriage of passenger and cargo between the Taiwan Area and the Mainland Area pursuant to These Regulations shall be limited as follows:
1. A vessel with the capital of either side of the Taiwan Straits, and that is registered on both sides;
2. A vessel with the capital of either side of the Taiwan Straits, and that is registered in Hong Kong;
3. Foreign vessels operated by vessel carriers registered in the Taiwan Area or the Mainland Area are already engaging in offshore shipping center transport or cross-strait third-area container liner transport, or sand and gravel transport prior to the implementation of these regulations.
Foreign vessels other than the vessels referred to in Item 3 of the preceding paragraph have filed an application to the local navigation authorities may navigate between the ports between the Taiwan Area and the Mainland Area only after the application has been forwarded to and approved by the MOTC.
Article 4
Vessel carriers registered in the Taiwan Area or the Mainland Area applying for the direct cross-strait carriage of passengers and cargo shall enclosed a direct cross-strait carriage application form, concurrently with the business plan (BP), shipˇs particulars and other relevant documents to apply to the local navigation authorities for examining and submitting to MOTC for approval. Upon the approval by the MOTC, the foregoing also applies to foreign vessels.
The approval referred to in the preceding paragraph has the term of two (2) years. Reapplication and application for changes must be submitted thirty (30) days before expiration.
The vessel carriers shall commence the operation in four (4) months after the granting of the approval. Failure to comply with the foregoing, the operating approval shall be revoked by the MOTC through the report from the local navigation authorities.
The provisions prescribed in the foregoing three Paragraphs shall apply to the vessel carriers in Taiwan Area operating the navigation business from the third-area to the Mainland Area.

Article 5
Unless a branch office has been established in the Taiwan Area, the vessel carriers registered in the Mainland Area or the foreign vessel carriers must authorize shipping agents of the Taiwan Area to operate the business.
The Articles 35 and 36 of the Shipping Law also apply mutatis mutandis to the Taiwan branch offices of the vessel carriers of the Mainland Area.

Article 6
The vessel carriers applying for conducting Liner Service between the Taiwan Area and the Mainland Area shall enclose an application form, concurrently with the business plan (BP), list of vessels, a schedule of voyage and other relevant documents to apply to the local navigation authorities for examining and submitting to MOTC for approval.The foregoing also applies to the approvalcations for changes,
The vessel carriers applying for conducting Non-Liner Services between the Taiwan Area and the Mainland Area shall, by vessel and by voyage, apply separately for a navigation approval of the local navigation authorities;The foregoing also applies to the approvalcations for changes,

Article 7
Upon entering and exiting the ports of direct cross-strait transportation in the Taiwan Area, vessels engaging in direct cross-strait carriage shall switch on the international maritime communications channel during the whole course and equip with the Automatic Identification System (AIS).

Article 8
The vessels registered in the Mainland Area shall not fly their flag on the stern and mainmast of the vessel between entering and leaving the direct transport ports in the Taiwan Area, but shall fly their company flag for vessel identification.

Article 9
The navigation routes that vessels enter or exit the ports of the direct cross-strait transportation in the Taiwan Area may be designated by the MOTC in consultation with relevant authorities on the basis of real demand, and shall be publicly announced and published in a government gazette. Vessels must navigate according to the designated routes.

Article 10
For the vessels, passengers and cargo refering to the direct cross-strait carriage between the Taiwan Area and the Mainland Area, entering or exiting the ports opening for direct cross-strait transport in Taiwan Area, the fees in accordance with provision of the general operation of the ports shall be paid.

Article 11
The vessel carriers or their agencies shall, no later than 10th day of each month, prepare the vessels data for direct navigation and statistic data of carriage/transportation that they operate or entrusted in the previous month according to the format prescribed by the MOTC, and report to the local navigation authorities.

Article 12
In case of violation of the provisions of Article 7, 9 or Article 11 of These Regulations, the MOTC may order the vessel carriers to correct such violation or suspend the partial operation of their business; if the circumstance of violation is serious, a forcible correction within a specified period and a possible suspension of the part of its commmerce.

Article 13
The matters regarding the approval and administration under These Regulations may be exercised by the local navigation authorities delegated by the MOTC.

Article 14
These Regulations shall come into force on the date of promulgation.



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