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In preparation for introducing a system shortly for making non-vessel operating common carriers (NVOCCs) file tariff rates, China’s Ministry of Transport, which has unveiled a draft of the Implementing Rules for NVOCC Freight Filing, is soliciting opinions extensively from relevant industries, according to the Shanghai Shipping Exchange.
China intends to regulate its international shipping market more effectively in accordance with an article of the Regulations of the People’s Republic of China on International Maritime Transportation that is concerned with filing rates.
Comments will be accepted from the general public until August 20.
It is suggested in the draft that an NVOCC issue bills of lading (B/Ls) and other transport documents as well as provide appropriate transport services in accordance with the characteristic of its business and the balance between supply and demand in the market, and in consideration of costs it shoulders.
An NVOCC should provide services at reasonable rates and is prohibited to win contracts for transporting cargoes by offering “zero” or “negative” rates, it added.
It is also proposed in the draft that if an NVOCC is in violation of the regulations, an order be issued to urge it to improve its business practice on a temporary basis and to report it to the Ministry of Transport.
As for violations, (1) if an NVOCC fails to comply with the regulations and file tariff rates or operate services at tariff rates that it has filed, a fine of RMB20,000 or higher but RMB100,000 or lower will be imposed.
(2) An investigation will be made if an NVOCC files unreasonably low tariff rates that are even lower than the tariff rates on which it has agreed with shipping companies and different considerably from the average of those filed by other NVOCCs on the same trade, and they hinder fair competition.
If the NVOCC rejects to be investigated or make a false report, it will be liable to a fine of RMB20,000 or higher but RMB100,000 or lower.
