The Ministry of Ecology and Environment has issued a notice expanding China’s waste import ban by adding 32 types of solid waste, including “ships and other floating objects destined for scrapping”, to the list.
According to the notice, ships registered under a non-Chinese flag will not be permitted to be imported and further recycled at any Chinese recycling shipyard. The notice will enter into force on 31 December 2018.
The new regulation also includes situations when a non-Chinese ship carry cargo destined to China, with the ship itself destined for recycling in the country while anchoring at a Chinese quay. The new regulation will put an end to this practice too.
In theory, buyers can re-flag non-Chinese ships to the Chinese flag first, and then import the ship as a second-hand ship for scrapping. This practice however, will most likely not represent an attractive business model going forward, as it will trigger a 9% Import Customs Duty as well as 17% VAT.
(Promulgated by Decree No.6 of the Ministry of Communications on 19 August 1996)
Article 1 For the purpose of facilitating the development of the shipping industry across the Taiwan Strait, maintaining a normal shipping order, and developing the cross-Strait economic and trade relations, these measures are formulated in accordance with the principle of "one China, direct two-way shipping, mutual benefit and mutual preference."
Article 2 These measures are applicable to direct cargo and passenger shipping between the ports of the Chinese mainland and those of the Taiwan region (hereinafter referred to as cross-Strait shipping).
Article 3 Cross-Strait shipping belongs to the range of domestic transportation under special administration.
Article 4 The Ministry of Communications of the People's Republic of China (hereinafter referred to as the Ministry of Communications) is the competent authority in charge of the matters relating to cross-Strait shipping.
Article 5 If approved by the Ministry of Communications, the ships owned or operated by the shipping companies which have been registered in the Chinese mainland and the Taiwan region and possess the following qualifications may engage in cross-Strait shipping:
1. The solely-owned shipping companies of the Chinese mainland or the Taiwan region;
2. The equity joint ventures as formed by shipping companies from the Chinese mainland and the Taiwan region.
Article 6 In applying for engaging in cross-Strait shipping, the local shipping companies registered in the Chinese mainland shall submit the application to the competent departments of communications of various provinces, autonomous regions and municipalities directly under the Central Government where the companies are situated for examination and approval, and then to the Ministry of Communications for approval; the shipping companies subordinated to various departments of the State Council shall submit the application to the relevant competent departments for examination, and then to the Ministry of Communications for approval.
The shipping companies registered in the Taiwan region of China shall entrust their shipping agencies in the mainland with the responsibility of submitting the application, which shall be forwarded to the competent departments of communications of various provinces, autonomous regions and municipalities directly under the Central Government where the agencies are situated for examination and approval, and then to the Ministry of Communications for approval.
Article 7 A shipping company applying for engaging in cross-Strait shipping shall submit the following documents:
2. Data of ships;
3. A sample bill of lading;
4. Other documents as required by the Ministry of Communications.
Article 8 The Ministry of Communications shall decide on approval or disapproval within 45 days upon receipt of the application, and notify the applicant of its decision in the written form.
Article 9 The Ministry of Communications shall issue a License for Water Way Transportation across the Taiwan Strait and a Business License for Shipping across the Taiwan Strait to the approved cross-Strait shipping company and its ships.
The above-mentioned licenses shall be valid for 1 year.
Article 10 Without the approval of the Ministry of Communications, foreign shipping companies shall not be allowed to engage in direct two-way or transit cargo and passenger shipping across the Taiwan Strait.
Article 11 The ports and the shipping agencies of the mainland which provide services to cross-Strait shipping shall be approved and announced by the Ministry of communications.
Without approval, none of the ports and shipping agencies of the mainland shall be allowed to engage in the businesses relating to cross-Strait shipping.
Article 12 No port authority departments shall be permitted to go through the formalities concerning the entry into or exit from the ports for the ships engaging in cross-Strait shipping without approval of the Ministry of Communications, and the Ports shall not be allowed to load and unload cargo for these ships, and the shipping agencies shall be forbidden to conduct freight forwarding business for them.
Article 13 When a shipping company is, in violation of the stipulations of Articles 5 and 11, engaged n cross-Strait shipping without approval, the Ministry of Communications shall serve it a warning and confiscate its unlawful income.
Article 14 When an operator of port or a shipping agency in violation of Article 12, provides relevant services for the ships of the shipping companies without the business license for cross-Strait shipping, the Ministry of Communications shall serve it a warning and confiscate unlawful income; those which are in serious violation of these measures shall, apart from receiving the above-mentioned punishments, be disqualified from engaging in the businesses relating to cross-Strait shipping.
Article 15 These measures shall come into force as of August 20, 1996.
Source: Ministry of Foreign Trade and Economic Cooperation