Vol.31#5
 
 


MOC's Opinion on the Issue of Increasing THC Level
in South China by the Liner Agreements
(English translation made by China Shipper's Association)

 

Since March, 2007, the members of IADA, IRA, ISAA and IRSA subsequently filed collective agreements on increasing THC level in South China with the MOC's Water Transport Department. After examination, MOC found that :

1. ISAA and IRSA have not filed their organization's constitution agreements with the MOC in accordance with the <Maritime Regulation of the People's Republic of China>, and the members of ISAA and IRSA are in violation of the rule of consultation, establishment and implementation of the relevant freight agreements in relation to Chinese ports.
   
2. According to the < NOTICE ON STRENGTHENING SUPERVISION ON LINER CONFERENCES AND FREIGHT DISCUSSION AGREEMENTS> (Decree No. 10 issued by Ministry of Communication, PRC on March 12, 2007), all liner conferences and liner freight agreements must each file their own designated liaison offices with the MOC before April 15, 2007. However, IADA and IRA failed to do so.
   
3. In their submission of the materials to MOC on increasing THC level in South China, the members of IADA and IRA failed to submit the explanation materials on the reason and evidence of increasing THC level, and they also failed to submit materials of effective consultations with the relevant shipper organizations in China.

According to the above, MOC has concluded that:

1. In the light of ISAA and IRSA have not filed their organization constitution agreements with the MOC in accordance with the <Maritime Regulation of the People's Republic of China>, therefore, MOC considers that the agreements concluded by ISAA and IRSA in relation to Chinese ports are invalid, their agreements on increasing THC level in South China starting from May 15, 2007 should be cancelled, and they cannot conduct any such activities in China within one year starting from April 28, 2007, and all their members cannot consult, establish, and implement ISAA and IRSA's any operation and freight agreements. At the same time, MOC will penalize members of ISAA and IRSA according to Article 48 of the Maritime Rule of China.
   
2. In the light -of IRA and IADA failed to file their designated liaison offices with the MOC according to MOC's Decree No. 10, and their members submitted incomplete materials on increasing THC level in South China, therefore, MOC does not accept their filing materials. All their members cannnot implement IRA and IADA's agreements on increasing THC level in South China .

 



 
 
 
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