Interim measures of the Customs of the People's Republic of China Concerning Vessel Tonnage Dues

Article 1 Vessel tonnage dues (hereinafter referred to as tonnage) shall be levied by the Customs in accordance with these Measures on foreign registered vessels and Chinese registered vessels chartered by foreign firms and Chinese or foreign registered vessels used by Chinese-foreign equity joint ventures (including vessels sailing exclusively within the ports) sailing in the ports of the People's Republic of China. It is not necessary for the said vessels paying tonnages to pay additional vehicle and vessel service licence fees to the tax authorities.

Article 2 Tonnages are divided into two types: one to be paid once every three

months and the other to be paid once every 30 days, to be chosen by the payers themselves when they apply for the payment of the tonnages. The scale and rate of the tonnages are as follows:

1. Those to be paid once every three months:

|===================|=============================|====================|===============================|

|Category of Vessel |Tonnes |Tonnage per tonne |Remarks |

| | | (RMB) | |

|===================|=============================|====================|===============================|

| |below 50 tonnes | 3 jiao |Tonnages to be calculated |

| |-----------------------------|--------------------|-------------------------------|

| | 51 tonnes to 150 tonnes | 3 jiao 5 fen |and levied by net weight. The |

| |-----------------------------|--------------------|-------------------------------|

| | 151 tonnes to 300 tonnes | 4 jiao |odd amount less than 1/2 |

| |-----------------------------|--------------------|-------------------------------|

| | 301 tonnes to 500 tonnes | 4 jiao 5 fen |tonne is exempt from taxa- |

| |-----------------------------|--------------------|-------------------------------|

|Power-drive | 501 tonnes to 1,000 tonnes | 6 jiao |tion; 1/2 tonne or more is |

| |-----------------------------|--------------------|-------------------------------|

|Vessels (Steam- |1,001 tonnes to 1,500 tonnes | 7 jiao 5 fen |considered as 1 tonne. Small |

| |-----------------------------|--------------------|-------------------------------|

|Ships, motor- |1,501 tonnes to 2,000 tonnes | 9 jiao |vessels less than 1 tonne shall|

| |-----------------------------|--------------------|-------------------------------|

|boats or tugboats) |2,001 tonnes to 3,000 tonnes |1 yuan 1 jiao |be taxed as 1 tonne except for |

| |-----------------------------|--------------------|-------------------------------|

| |3,001 tonnes to 4,000 tonnes |1 yuan 3 jiao |those enjoying exemption |

| |-----------------------------|--------------------|-------------------------------|

| |4,001 tonnes to 5,000 tonnes |1 yuan 5 jiao |specially granted by |

| |over 5,001 tonnes |1 yuan 8 jiao |the General Customs |

| | | |Administration. |

|===================|=============================|====================|===============================|

|Non-power- | below 10 tonnes | 1 jiao 5 fen | |

| |-----------------------------|--------------------|-------------------------------|

|Driven Vessels | 11 tonnes to 50 tonnes | 2 jiao | |

| |-----------------------------|--------------------|-------------------------------|

|(Various | 51 tonnes to 150 tonnes | 2 jiao 5 fen | |

|manually- |-----------------------------|--------------------|-------------------------------|

|driven boats, | 151 tonnes to 300 tonnes | 3 jiao | |

| |-----------------------------|--------------------|-------------------------------|

|lighters and junks)| over 301 tonnes | 3 jiao 5 fen | |

|===================|=============================|====================|===============================|

2. Those to be paid once every 30 days shall be levied at half the rates

in the above list. The tonnage shall be levied on an incoming vessel from

the date of its declaration for entry. If the vessel does not leave China

at the expiration of the tonnage licence, the levy shall continue as of

the next day of the expiration.

Article 3 The tonnage for a vessel which is registered in or belongs to a foreign country which has entered into a treaty or agreement with the People's Republic of China for mutual preferential treatment of tonnages or fees levied on vessels shall be levied at a preferential rate. The rates of tonnages to be levied once every three months are as follows:

|===================|=============================|====================|==============================|

|Category of Vessel |Tonnes |Tonnage per tonne |Remarks |

| | | (RMB) | |

|===================|=============================|====================|==============================|

| |below 50 tonnes | 3 jiao |The procedures for calculaion |

| |-----------------------------|--------------------|------------------------------|

| | 51 tonnes to 150 tonnes | 3 jiao 5 fen |and levy are the same as in |

| |-----------------------------|--------------------|------------------------------|

| | 151 tonnes to 300 tonnes | 4 jiao |the preceding list. |

| |-----------------------------|--------------------|------------------------------|

|Power-driven | 301 tonnes to 500 tonnes | 4 jiao 5 fen | |

| |-----------------------------|--------------------|------------------------------|

|Vessels (Steam- | 501 tonnes to 1,000 tonnes | 5 jiao 5 fen | |

| |-----------------------------|--------------------|------------------------------|

|ships, motor- |1,001 tonnes to 1,500 tonnes | 6 jiao 5 fen | |

| |-----------------------------|--------------------|------------------------------|

|boats or tugboats) |1,501 tonnes to 2,000 tonnes | 8 jiao | |

| |-----------------------------|--------------------|------------------------------|

| |2,001 tonnes to 3,000 tonnes | 9 jiao 5 fen | |

| |-----------------------------|--------------------|------------------------------|

| |over 3,001 tonnes |1 yuan 1 jiao | |

|===================|=============================|====================|==============================|

|Non-power- |below 10 tonnes | 1 jiao 5 fen | |

| |-----------------------------|--------------------|------------------------------|

|Driven Vessels | 11 tonnes to 50 tonnes | 2 jiao | |

| |-----------------------------|--------------------|------------------------------|

|(Various manually- | 51 tonnes to 150 tonnes | 2 jiao 5 fen | |

| |-----------------------------|--------------------|------------------------------|

|driven boats, | 151 tonnes to 300 tonnes | 3 jiao | |

| |-----------------------------|--------------------|------------------------------|

|lighters and | over 301 tonnes | 3 jiao 5 fen | |

|junks) | | | |

|===================|=============================|====================|==============================|

If a vessel paying the tonnage as stipulated under this Article applies to

make payment once every 30 days in accordance with the procedures in the

preceding Article, the tonnage shall be levied at half the rates in the

above list.

Article 4 A foreign registered vessel or a Chinese registered vessel chartered by a foreign firm shall submit the vessel tonnage licence and the declaration

at the Customs for examination and entry or clearance purposes as stipulated by the Customs when it arrives at or leaves a port where there is a Customs establishment. If the original licence has expired at the time of entry or the tonnage has not been paid before, it shall file a declaration at the time of entry, make the declaration at the Customs and pay the tonnage by submitting:

(1) the certificate of the vessel's registry (or the testimonial signed and issued by the port authorities to testifythat this certificates has been kept in their custody) and

(2) the certification of the vessel's tonnage for examination.

Article 5 If the term of validity of the tonnage licence of the above vessel has expired after its declaration for entry or if it sails exclusively within

the port, it shall make a declaration at the Customs, pay the tonnage and obtain a new licence as stipulated in the preceding Article upon expiration of the original licence. If it fails to make a declaration and pay the tonnage within 5 days of expiration, it shall be fined according to the stipulation in Article 14 of these Measures.

Article 6 A foreign registered vessel specially permitted to sail to or from a place

where there is no Customs establishment shall submit the vessel tonnage licence to the local port authorities for examination (it shall be submitted to the local frontier public security organs or frontier forces for examination in a place without port authorities) as stipulated in Article 4 of these Measures when it arrives at or leaves the port. At the expiration of the original licence, it shall also make a declaration at the local tax bureau as stipulated in Article 4 and Article 5 of these Measures and the bureau shall collect the tonnage and issue a new licence

in lieu of the Customs according to these Measures. If it fails to make a declaration within the time limit, it shall be fined in accordance with Article 14.

Article 7 The payer shall pay the tonnage within 5 days (Sundays and statutory

holidays excepted) of the issue of the Notice of Tonnage Payment by the Customs (or the tax bureau) and the Customs (or the bureau) shall issue the vessel tonnage licence. If the time limit is exceeded, the Customs (or the bureau) shall collect a fine for delaying payment of 0.1% of the payable tonnage daily from the sixth day to the day of full payment of the tonnage and pay it into the treasury as Customs' fines.

Article 8 In the case of a Chinese registered vessel chartered by a foreign firm or a foreign registered vessel chartered by a Chinese public or private enterprise, the vehicle and vessel service licence tax or the vessel tonnage already paid shall remain valid if it has not expired at the beginning or termination of the charter. However, the vessel shall make a declaration at the Customs' and pay the tonnage or make the declaration at the tax bureau and pay the vehicle and vessel service licence tax upon its expiration on the basis of the charter at the time.

Article 9 The tonnage amount shall not be readjusted within the term of validity of the tonnage licence already obtained even if the net weight of a vessel is

increased or reduced due to repairs. However, at the time of the next payment of tonnage, an application shall be made for the adjustment of the tonnage amount on the basis of the certificate of tonnage after its change of weight. If the increase in weight is not disclosed and declared with the intention of evading tonnage payment, the vessel shall be fined as stipulated in Article 14 of these Measures.

Article 10 In any of the following cases for a vessel which has paid tonnage, the

Customs shall annotate and comment on the extension of the term of the licence validity according to the actual number of days after examining the papers submitted by the port authorities:

(1) a vessel sailing into a port in the country for asylum or repair;

(2) a vessel under quarantine and unable to embark or disembark passengers

or cargos;

(3) a vessel having been commandeered and chartered by the Central

Government or a local people's government.

Article 11 The following foreign registered vessels shall be exempt from tonnages:

(1) vessels for use by embassies, legations and consulates of countries

having diplomatic relations with China;

(2) vessels with papers from the local port authorities to take asylum,

undergo repairs, suspend service or be disassembled and not to embark or

disembark passengers or cargos;

(3) mooring pontoons, floating-bridge pontoons and floating boats used

exclusively for embarking or disembarking passengers or cargos and storing

goods;

(4) vessels commandeered or chartered by the Central Government or local

people's governments;

(5) international vessels which are exempt from making declarations at the

Customs for entry as stipulated in Article 27 of the Provisional Customs

Article 12 If a charter-party goes through Customs formalities before the vessel

arrives at the port, it shall submit a written guarantee to the Customs house to assure submission upon entry of the vessel of the tonnage licence for examination or payment of the tonnage and application for licence according to regulations. The term of validity of the licence shall begin on the date of the vessel's declaration for entry.

Article 13 If the tonnage licence obtained by a charter-party is defaced or lost

during the term of validity, it shall make a written application to the original licence-issuing Customs establishment (or tax bureau) for a copy of the tonnage licence. No further payment is required.

Article 14 All formalities shall be observed within the time limit set. A charter- party who fails to make a declaration, pay the tonnage and obtain the

licence shall be fined not more than three times the payable tonnage amount and the fine shall be paid into the treasury as Customs' fines.

Article 15 These Measures shall go into force as of the date of promulgation.