Reminder - New Regulations from the Chinese Ministry of Transport (MOT)

                                 19 February 2014

Reminder - Notification on Implementation of New Regulations from the Chinese Ministry of Transport (MoT)

Further to the advisory sent out on 31 January 2014 Maersk Line would like to remind our customers about the implementation of the new regulations from the Chinese Ministry of Transport (MoT).

Kindly note: The new regulations are effective from 15 February 2014. Hence, please initiate registration as soon as possible to avoid any risk to your business in China. Once available, please provide your registration number to your Maersk line sales representative.

Furthermore, for your reference kindly see notification below sent by Maersk China Shipping Co Ltd to all customers in China, as a general guidance. Please direct any questions pertaining to this notification to the SSE (contact details below).

New Filing Regulations in China: Guideline on how foreign customers can register as approved NVOCCs in China

Further to our earlier notification on implementation of new regulations from the Chinese Ministry of Transport (MoT), we have also been advised by Shanghai Shipping Exchange (SSE) on how foreign customers can register as an approved NVOCC in China:

1) The foreign NVOCC applicant will need to appoint a liaison entity in China for document preparation and communication with SSE; and

2) SSE will communicate and work with the liaison entity in China and send the application to MoT for approval.

Please find below guidelines from SSE explaining what needs to be prepared for the registration. If a foreign NVOCC is not present in China, the NVOCC needs to sign a power of attorney with a local liaison entity. The liaison entity usually could be the agent or the liaison office of the foreign freight forwarder, or a law firm registered in China.

The guideline has also included Article No. 25 (see Appendix below) of the Implementation Rules of China Maritime Regulation, which has the definition of what a liaison entity should be.

Application flow:

1.  The foreign company prepares below documents together with the local liaison in China.

2.  The Local liaison submits qualified documents to the local administrative department of transportation. (SSE will assist the local liaison with this)

3.  After reviewing, the local administrative department of transportation sends the

documents to MOT.

4.  The MOT approves and issues NVOCC license after checking and reviewing.

5.  The foreign company gets NVOCC license.

The Foreign company should submit the following documents for NVOCC license in China:

1.  NVOCC Application for Ministry of Transportation (Company seal & signature)

2.  Feasibility Study Report (Company seal)

3.  Notarized and authenticated Certificate of Business License by the local Chinese

      Embassy

4.  Sample of Bill of Lading (3 pieces of original B/L)

5.  Introduction of Local Liaison in China (Liaison's signature & seal)

6.  Power of Attorney (Company's seal & signature)

7.  Agreement with Local Liaison in China (both company & their liaison's seal &

      signature)

8.  Local Liaison's Business License (copy file

9.  An application fee of RMB 5,000.00

10.  Cash deposit for NVOCC

•  For US original company: Certification of US 125,000.00 deposit at FMC (copy file) & Title Page
• For other foreign country: Certification of RMB 800,000.00 deposit in MOT designated bank

Other information:

1.  SEE is eligible to accept the case to be applied in Shanghai. All applicants can contact SSE directly with the contact person as Mr. Zhou Weiming.

Telephone: +86 (21) 6504 0234, 65151166 ext. 1826

2.  SEE can appoint a liaison entity for foreign freight forwarders if applied in Shanghai.

3.  Applying NVO status in Shanghai could substantially simplify the procedure although applying the status anywhere in China is legally viable. Foreign companies can still appoint a liaison entity located outside Shanghai with a much longer application period.