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　(Promulgated by the Ministry of Foreign Trade and Economic

Cooperation (MOFTEC) on August 21, 1996)

Article 1 These Regulations are formulated in accordance with the Chinese laws and regulations and the principle of 'One China, bilateral direct shipping, mutual benefit', in order to facilitate the development of the trade and economic co-operation between the two sides of the Taiwan Straits and safeguard the normal order of cargo shipping agent business.

Article 2 The said Regulations apply to the management of agent business of direct cargo shipping between the two sides of the Straits.

Article 3 The direct cargo shipping between the mainland ports and Taiwan regional ports is domestic transportation under special management. The Ministry of Foreign Trade and Economic Coopertation of the People's Republic of China (MOFTEC) is the administrative organ of cargo shipping agent business between the two sides of Taiwan Straits.

MOFTEC practises the industry management on the enterprises engaging in cargo shipping agent business according to the Chinese laws and regulations and supply and demand situation of cargo shipping market of the two sides of the Straits.

Article 4 Running the cargo shipping agent business between the two sides of the straits shall be authorized by MOFTEC. Any enterprise or individual not authorized by MOFTEC can't run the said business.

Article 5 The enterprises applying for running the cargo shipping agent business between the two sides of the Straits are limited to the two kinds as follows:

a. International cargo shipping agent enterprises whose total capital comes from the mainland and which are established with the approval of MOFTEC;

b. International cargo shipping agent enterprises which are equity or cooperative joint ventures of the mainland and Taiwan region investors and are established with the apporval of MOFTEC:

Article 6 The enterprises applying for running cargo shipping agent business between the two sides of the Taiwan Straits shall be approved by MOFTEC after examination and initial ratification by the administrative organ of foreign trade and economic co-operation of the province, autonomous region, municipality directly under the Central Government and special economic zone in which they are located. MOFTEC will decide whether or not to grant approval within 45 days from the date of receiving the application and documents which are required in Article 7.

MOFTEC issues the operating licenses to the enterprises which are authorized to run cargo shipping agent business between the two sides of the Straits.

The operating licenses are valid for 3 years. When the operating licenses expire, the enterprises which need to go on running the agent business concerned should change the operating licenses from MOFTEC 30 days before the expiry date of the operating licenses. The ones which don't change the operating licenses according to the said provision shall lose their qualifications of running the agent business concerned automatically.

Article 7 The enterprises which apply for running the cargo shipping agent business between the two sides of the Taiwan Straits should submit the documents as follows:

a. Application;

b. Feasibility research report;

c. Qualification and credit envidence;

d. Other documents which MOFTEC requires.

Article 8 MOFTEC periodically centralizes to publish the list of the enterprises which run the cargo shipping agent business between the two sides of the Straits.

Article 9 The enterprises which run direct cargo shipping business between the two sides of the Straits have to choose agents from the enterprises published by MOFTEC which run the cargo shipping agent business concerned. The Customs can't clear for the enterprises which are not authorized to run the agent business concerned by MOFTEC.

Article 10 The enterprises which are authorized to run direct cargo shipping business between the two sides of the Straits should provide high quality services for cargo consignees and consignors of the two sides of the Straits and direct shipping ships, and submit the reports concerning operating condition to the administrative organ of the foreign trade and economic cooperation and then report to MOFTEC in the first ten-day period of the first month every quarter.

Article 11 MOFTEC shall, in accordance with relevant laws, penalize the enterprises running cargo shipping agent business between the two sidses of the Straits in violation of laws, regulations and these Regulations.

Article 12 For the matters concerning running cargo shipping agent business between the two sides of the Straits which are not stipulated in these Regulations refer to The Regulations on the Administration of International Cargo Shipping Agent of the People's Republic of China's.

Article 13 These Regulations go into effect as of promulgation.

Article 14 MOFTEC shall be responsible for the interpretation of these Regulations.

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