Regulations of Hainan Free Trade Port on International Vessels

(Adopted at the 28th Session of the Standing Committee of the Sixth People's Congress of Hainan Province on June 1, 2021)

Chapter I General Provisions

Article 1 The Regulations are formulated in accordance with the Maritime Traffic Safety Law of the People's Republic of China, the Regulations of the People's Republic of China on the Registration of Vessels and other relevant laws and regulations and in combination with actual conditions of Hainan Free Trade Port, in order to further facilitate the inspection, registration and operation of international vessels at and improve the service of Hainan Free Trade Port, and promote the development of the maritime transport industry and related industries.

Article 2 For the purpose of the Regulations, international vessels refer to the vessels registered in Hainan Free Trade Port and engaged in international voyages.

The port of registry of international vessels is Yangpu Port of China.

Article 3 The maritime safety administration of Hainan shall administrate the services of Hainan Free Trade Port related to international vessels, such as inspection, safety supervision, pollution prevention and protection of crew rights and interests.

The international vessel registration agency determined by the national maritime safety administration (hereinafter referred to as the "international vessel registration agency") shall handle affairs in connection with registration of international vessels.

The competent transport department of the People's Government of Hainan Province shall administrate the services related to international vessels such as operation thereof, and other relevant departments shall effectively administrate the services related to international vessels within the scope of their respective duties.

Article 4 The maritime safety administration of Hainan, the international vessel registration agency, and the competent transport department of the People's Government of Hainan Province shall, through provincial unified infrastructure for sharing and opening of government information resources, realize interconnection and information sharing, and strengthen cooperation in law enforcement.

Article 5 The maritime safety administration of Hainan, the international vessel registration agency, and the competent transport department of the People's Government of Hainan Province shall strengthen the administration of credit of organizations and individuals involved in international vessel-related activities, and give joint incentives and joint punishments in accordance with the relevant provisions.

Chapter II Vessels

Article 6 Authorized vessel inspection agencies may carry out the statutory inspection of international vessels and issue the corresponding certificates.

Foreign vessel inspection agencies may set up corporate legal persons, branches or resident representative offices in accordance with the law in Hainan Free Trade Port as needed by business development of international vessels.

Article 7 Vessel inspection agencies that have obtained statutory inspection authorization may carry out the classification inspection of international vessels.

The administrative measures for the classification inspection of international vessels by foreign vessel inspection agencies shall be formulated by the People's Government of Hainan Province and put into effect upon approval by the competent transport department under the State Council.

Article 8 The maritime safety administration of Hainan shall supervise and administrate the vessel inspection agencies or branches established in Hainan Free Trade Port and engaged in the statutory inspection and classification inspection of international vessels and their vessel inspections.

Article 9 The following vessels may apply for the registration of international vessels:

1. vessels owned by or involved in financial lease or demise charter of Chinese citizens with a domicile in Hainan Free Trade Port;

2. vessels owned by or involved in financial lease or demise charter of legal persons established in accordance with the law in Hainan Free Trade Port; and

3. vessels owned by or involved in financial lease or demise charter of unincorporated organizations established in accordance with the law in Hainan Free Trade Port.

The shareholding ratio of foreign investors in an entity applying for the registration of international vessels is unrestricted.

Article 10 The identification number, Chinese name and English name (which may be English words) of the vessel shall be obtained before the application for the registration of an international vessel.

Article 11 The types of registration of international vessels include:

1. registration of ownership of the vessel;

2. registration of nationality of the vessel;

3. registration of mortgage of the vessel;

4. registration of demise charter;

5. registration of change of the vessel;

6. deregistration of the vessel; and

7. other types stipulated by the State.

Article 12 The materials used to apply for registration of international vessels shall be in standard format.

If the materials used to apply for registration of international vessels that are submitted by an applicant are in a foreign language, a Chinese translation shall be provided at the same time; if the Chinese translation is inconsistent with the foreign language, the Chinese version shall prevail.

For the certificates and licenses that can be verified through the government service platform of the State or Hainan Free Trade Port, their originals are not required.

Article 13 The international vessel registration agency shall examine whether the materials used to apply for registration of international vessels are complete and conform to the legal form, whether the content of the application is consistent with the attached materials, and whether the format text is completed fully, and verify whether the materials are originals or consistent with originals.

Article 14 If, upon examination by the international vessel registration agency, the application for registration of a vessel meets the prescribed requirements, the international vessel registration agency shall register the vessel, and prepare and issue the corresponding registration certificate of the vessel.

The international vessel registration agency shall establish a record book on registration information of international vessels to record registration information of international vessels.

Article 15 The international vessel registration agency shall not register the vessel and notify the applicant of the reasons in writing, if:

1. the applicant cannot provide the certificate of right acquisition or the matters in the application for registration is inconsistent with the certificate of right acquisition;

2. a third party claims that there is an unresolved dispute over ownership and can provide evidence;

3. the matters in the application for registration conflict with the content of the issued registration certificate; or

4. there are other violation of laws and administrative regulations.

Article 16 When applying for registration of ownership of a vessel, the owner of the vessel shall submit:

1. the certificate of the applicant's legal identity;

2. the certificate of acquisition of the vessel's ownership; and

3. the certificate of technical parameters issued by an authorized vessel inspection agency.

When applying for registration of an existing vessel mentioned in the preceding paragraph, the applicant shall also submit the certificate of mortgage and the certificate of deregistration of the vessel issued by the vessel registration agency at the previous port of registry.

The certificate of acquisition of the international vessel's ownership refers to, for a newly-built vessel, the certificate of building and handover documents; for a vessel acquired by purchase, the certificate of purchase and sale and handover documents; for a vessel whose port of registry is changed but ownership remains unchanged, the certificate of registration of the vessel's ownership issued at the previous port of registry.

Article 17 When the owner of a vessel is temporarily unable to submit the original certificate of acquisition of the vessel's ownership, it may apply for temporary registration of ownership of the vessel by virtue of the photocopy or scanned copy. The owner shall be responsible for the authenticity, legality and validity of the photocopy or scanned copy.

To apply for registration of mortgage of an international vessel whose ownership has been registered temporarily, the mortgagee shall submit a confirmation, confirming that it holds the original certificate of ownership of the vessel that has not been submitted to the vessel registration agency.

Article 18 If the owner applies for registration of nationality of an international vessel but is temporarily unable to submit the certificate of deregistration of the vessel, it may apply for temporary registration of nationality of the vessel by virtue of the certificate of consent to deregistration issued by the vessel registration agency at the previous port of registry, or the commitment that the original owner will, before the expiry of the temporary registration of nationality of the vessel, deliver the certificate of deregistration of the vessel issued at the previous port of registry to the new owner.

Article 19 If a vessel meets the conditions for temporary registration of vessels, the international vessel registration agency shall issue a temporary certificate after the examination.

The temporary certificate of registration of ownership and the temporary certificate of nationality of the vessel shall remain valid for one month.

The owner of a vessel may, before the expiration of the temporary certificate of registration of ownership or temporary certificate of nationality of the vessel, apply to the international vessel registration agency for renewal with the relevant supporting materials. If the conditions are met, the international vessel registration agency shall decide to approve the renewal for no more than one month.

During the validity period of the temporary certificate of registration of ownership or the temporary certificate of nationality of the vessel, the owner may apply for registration of ownership and nationality of the international vessel with the original certificate of acquisition of ownership and certificate of deregistration of the international vessel. The temporary registration will be terminated when the registration of ownership and nationality of the international vessel is completed.

Article 20 If an international vessel falls under any of the following circumstances, the international vessel registration agency shall deregister its nationality:

1. the applicant submits false materials used to apply for registration of the international vessel;

2. the international vessel no longer meets the qualification for registration of international vessels stipulated in the Regulations;

3. the inspection certificate of the international vessel has expired for no less than three months;

4. the temporary registration of nationality of the international vessel has expired, but the certificate of deregistration of the international vessel issued by the vessel registration agency at the previous port of registry has not been submitted;

5. no deregistration is applied for within 15 days upon expiration of the demise charter contract or termination of the demise charter relationship;

6. the evaluated quality of the international vessel fails to meet the prescribed standard for three consecutive years; or

7. there are other circumstances under which the international vessel no longer meets the requirements for vessel registration.

Article 21 Entities and individuals may consult and copy basic information in the record book on registration information of international vessels such as technical data and registration types in accordance with the relevant provisions. The international vessel registration agency shall affix its seal to the information and materials consulted and copied for confirmation as needed by entities and individuals.

Entities and individuals shall not illegally use registration information of international vessels.

Article 22 The international vessel registration agency and the vessel inspection agency may, in accordance with the relevant provisions, issue electronic certificates of international vessels that have the same legal effect as paper certificates.

Article 23 The registration of international vessels that exceed the age limit on imported vessels prescribed by the State may be applied for after such vessels are approved by the competent transport department under the State Council and pass the inspection by an authorized vessel inspection agency.

Article 24 International ships may sail, berth and operate only after obtaining both the inspection certificate and the (temporary) certificate of nationality.

Article 25 The agency authorized by the State shall set up evaluation indicators for quality of international vessels, corporate safety and pollution prevention management, and vessel inspection agencies in accordance with internationally accepted practices, and conduct regular evaluations.

For those with lower scores in the evaluation, the agency authorized by the State shall conduct special maritime safety inspections and put forward rectification opinions.

Chapter III Crew Members

Article 26 Overseas crew members who hold work certificates and serve on international vessels and their family members shall enter Hainan in accordance with the relevant laws, regulations and work requirements.

Article 27 The social insurance of overseas crew members who have signed labor contracts with the crew member employer in Hainan Free Trade Port shall be subject to laws, regulations and relevant provisions of Hainan Free Trade Port, unless the host countries (regions) of such crew members sign a bilateral or multilateral agreement on social insurance with China.

Article 28 Overseas enterprises and individuals may set up or set up through cooperation crew member training institutions to engage in crew member training services in Hainan Free Trade Port in accordance with the relevant provisions. The setting-up of crew member training programs prescribed by the State shall be approved by the maritime safety administration of Hainan.

Overseas personnel who participate in crew member training programs prescribed by the State in Hainan Free Trade Port may apply for the corresponding certificate of competency and certificate of training in accordance with the relevant provisions if they pass the examination.

Chapter IV Operation

Article 29 The operation of transport business of international passenger vessels and international vessels for bulk liquid dangerous goods shall comply with the relevant national laws and regulations and be approved by the competent transport department of the People's Government of Hainan Province.

The People's Government of Hainan Province shall formulate specific administrative measures and implement them upon approval by the competent transport department under the State Council.

Article 30 The use of international vessels by domestic water transport operators to engage in water transport business in coastal waters within Hainan Province shall be approved by the competent transport department of the People's Government of Hainan Province.

International vessels may, upon approval, engage in over-water construction operations in coastal waters within Hainan Province.

Article 31 The international vessels that have reached the age of compulsory condemnation prescribed by the State may continue to engage in water transport within the validity period of the certificate after they have been approved by the competent transport department under the State Council and passed the inspection by an authorized vessel inspection agency.

Article 32 The owner or operator of an international vessel shall establish a liaison office in Hainan Free Trade Port to liaise with the competent administrative organ on the relevant administrative and legal affairs on behalf of the owner or operator. The owner or operator may serve as, or entrust a legal person or unincorporated organization registered in Hainan Free Trade Port to serve as, the liaison office.

The liaison office shall file with the maritime safety administration of Hainan and the competent transport department of the People's Government of Hainan Province.

Chapter V Entry and Exit

Article 33 The public security organ shall optimize the examination and approval method, simplify the examination and approval procedures, and provide convenient services such as online application for the crew members who need to apply for the Landing Permit for Crew Members of Joint Venture Vessels.

Article 34 The personnel involved in the inspection, maintenance and material supply of international vessels may perform services on such vessels before such vessels go through the import port procedures, provided that they shall obtain the permission of the relevant port inspection agency in advance.

Article 35 The old vessels that are purchased from abroad or obtained through other legal channels and intend to apply for registration of international vessels shall be exempted from applying for the import license for key old mechanical and electrical products in accordance with the relevant provisions.

Chapter VI Taxes and Maritime Services

Article 36 The spare parts and fuel for self-use on international vessels imported from abroad and built within China shall be exempted from tax or enjoy tax refund in accordance with the relevant provisions.

Article 37 The operators of international vessels and their ancillary business, crew member service agencies and vessel inspection agencies registered in Hainan Free Trade Port and substantively operating will enjoy enterprise income tax preferences in accordance with the relevant provisions; senior officers and crew members will enjoy individual income tax preferences in accordance with the relevant provisions.

Article 38 If an enterprise established in Hainan Free Trade Port contracts a foreign loan for international vessel financing, involving cross-border guarantee, it may sign a guarantee contract on its own without prior examination and approval, and shall apply for registration in accordance with the relevant provisions after the contract is signed.

For eligible international vessel financing, foreign loan funds may be subject to discretional foreign exchange settlement.

Article 39 The international vessel enterprises registered in Hainan Free Trade Port are supported to carry out financing business through policy financing, loans by pledge of warehouse receipts, loans by pledge of accounts receivable, and loans by pledge of intellectual property rights.

Article 40 If an enterprise registered in Hainan Free Trade Port applies to a bank for overseas vessel financing guarantee, it may purchase insurance instead of deposit payment.

Article 41 The financial lease enterprises established in Hainan Free Trade Port that carry out domestic financial lease business may collect rents in a foreign currency in accordance with the relevant provisions.

Article 42 The international shipping and auxiliary business enterprises registered in Hainan Free Trade Port that pay freight and related expenses overseas are exempt from tax filing if they conform to the relevant provisions.

Article 43 Domestic and foreign enterprises and agencies are supported to provide services such as shipping insurance, financial lease of vessels, average adjustment, vessel trading, and shipping arbitration in Hainan Free Trade Port.

Encouragement is given to the development of cross-border RMB settlement reinsurance business in the maritime transport industry.

Article 44 The maritime transport enterprises established in Hainan Free Trade Port are encouraged to set up mutual insurance organizations and self-insurance companies in accordance with the relevant provisions.

Article 45 The services for resolving commercial disputes shall be improved by establishing a resolving mechanism for commercial disputes over international vessels, and cooperating with domestic and foreign arbitration agencies, mediation agencies and other dispute resolution agencies.

Chapter VII Legal Liability

Article 46 If the issues listed in the special maritime safety inspection opinions are not rectified in accordance with Article 25 of the Regulations, they shall be rectified within a prescribed time limit; if the requirements are still not met after the rectification within the prescribed time limit, and there are serious safety hazards, the following provisions shall apply:

1. the short-term safety management certificate is issued to the international vessel or the safety management certificate is revoked;

2. the short-term compliance certificate is issued to the enterprise or the compliance certificate is revoked; and

3. Part or all of the authorization to the vessel inspection agency is revoked.

Article 47 If any state personnel, in violation of the Regulations, abuse power, engage in malpractice for personal gains, or neglect duties, they shall be punished according to the law; if a crime is constituted, they shall be investigated for criminal liability in accordance with the law.

Article 48 If, regarding violations of the Regulations, the Regulations do not stipulate related punishments, but laws and regulations set forth otherwise punishment provisions, such provisions shall apply.

Chapter VIII Supplementary Provisions

Article 49 The Regulations shall apply mutatis mutandis to the vessels registered in Hainan Free Trade Port and engaged in voyages between Chinese mainland and Hong Kong or Macau.

Article 50 The Regulations shall come into force as of September 1, 2021.