Taiwan: Additional Vessel Reviews and MOC Shipping Permit Mandated

New Review Mechanism

Under the new review mechanism, all shipowners and ships with the following identities and who meet the following requirements will be required to pass the national security review before they can proceed with the subsequent port registration and navigation approval.

• Shipowner: The registered address of the shipowner company is in Mainland China, Hong Kong or Macau
• Vessels:
  • Substandard vessels (5 black flag countries: Cameroon, Tanzania, Mongolia, Togolese Republic and Sierra Leone)
  • Specific types of vessels (RO/RO ship, semi-submersible vessels, platform vessels, heavy-lift ship, crane vessels, tankers, oil tankers and liquefied petroleum gas tankers, etc.)

For Example:
Vessel A: If the registered address of the shipowner is one of the three places in Mainland China, Hong Kong or Macau, but the nationality of the ship is Singapore flag (not one of the three places in Mainland China, Hong Kong or Macau) or a substandard ship (5 black flag countries: Cameroon, Tanzania, Mongolia, Togolese Republic and Sierra Leone), application submit to the national security unit for consultation and approval in advance is required.

Vessel B: If the registered address of the shipowner company is Singapore (not one of the three places in Mainland China, Hong Kong or Macau), but the nationality of the ship is Hong Kong Flag or Macau Flag (vessels registered with Chinese nationality China Flag are applicable to MOC application, and the relevant regulations and application will be explained later), it is not necessary to send it to the national security unit for new system review. It can be processed according to normal procedures.

Regulations for Ships to Sail Between Taiwan and Mainland China

• All Chinese-registered flag vessels (regardless of the shipowner's place of registration), whether they are engaged in cross-strait cargo shipping or shipping via a third place, must submit the documents to the National Security Agency for review and approval before they can enter Taiwan ports for berthing.
• As mentioned above, China-flagged ship need to apply for a shipping license, referred to as MOC, if vessel want to carry out cargo shipping between the two sides of the Taiwan Strait. The validity period of the shipping license (MOC) is two years. According to regulations, after obtaining the license, the shipping/operation must begin within 4 months. If the deadline is exceeded, the shipping license will be cancelled. And it is only allowed to sail between the 72 Mainland China ports and 15 Taiwan ports that are open for direct calls on both sides of the Taiwan Strait (please see the attached Open port list of Direct Call)
  
  For Example:
  Ship A is a China-flagged ship. It needs to enter the Taiwan port to load cargo and then sail to the Mainland China port to discharging cargo. It needs to apply for a shipping permit (MOC) in advance before entering the Taiwan port to load cargo, vice versa.
  
  
• If a China-flagged ship needs to go to a Taiwan port to transport goods to a third place other than a port on both sides of the Taiwan Strait, it may apply for a third place and Taiwan shipping permit, but only for a single voyage.
  
  For Example:
  Vessel A is a China-flagged ship. It needs to enter the Taiwan port to load cargo and then sail to a third port (not a Chinese port) to discharge cargo. It needs to apply for a single voyage shipping permit in advance before entering the Taiwan port to load cargo. Vice versa

The Shipping Permit (MOC) or a single voyage permit application in accordance with the above regulations, the ship owner or carrier must submit the following documents as part of the application:

1. Application for direct shipping between Taiwan and Mainland China/Change of registration
2. Application for direct shipping between Taiwan and Mainland China/Change of operation plan
3. Ship’s Particular
4. Vessel nationality/registration certificate
5. Valid International Convention for the Protection of Ships Certificate
6. For ships purchased by companies established in a third place (including Hong Kong) by people from both sides of the Taiwan Strait or legal persons, the company must provide shareholder identification documents or company registration documents (which must include proof of shareholding by the company's directors or shareholders), and sufficient evidence to prove that the ultimate beneficiary is a person from one of the two sides of the Taiwan Strait who holds more than 50% of the capital.
7. Ship charter contract (for vessels not owned by the carrier)
8. Mainland China transporters must attach the following documents (collectively referred to as the 4 certificates):

1. 1. Taiwan Strait Cross-Strait Vessel Operating Permit
   2. Taiwan Strait Land and Water Transport Permit
   3. Business license of corporate entity
   4. International Shipping Operation License/International Liner Shipping Operation Qualification Registration Certificate

The above-mentioned mainland transporters who possess the four certificates may apply for permission for cross-strait direct flights and shipping business between third places and Taiwan. This bureau will issue company operating permission and route permission for a certain period of time. (MOC / 2 years valid)

The above-mentioned mainland carriers who possess three certificates (without a vessel operating certificate) can only apply for a navigation business permit between a third place and Taiwan, commonly known as a single voyage permit.

Regulations for Non-China Flagged Ships Sailing Between Taiwan and Mainland China Ports

• If Non-China flagged vessels need to load and discharge cargo between the two sides of the Taiwan Strait, they do not need to apply for a Cross-Strait Shipping Permit (MOC), but must go to a designated third-place port for formal transshipment. According to regulations, the designated third-place ports are as follows:
  HONG KONG / ISHIGAKI, JAPAN / NAMPO, NORTH KOREA /JEJU, KOREA / MOKPO, KOREA / BUSAN, KOREA / WANDO-GUN, KOREA / YEOSU, KOREA

For Example:
If a Singapore-flagged vessel needs to sail to a Taiwan port to discharge cargo after loading cargo at a Mainland China port, it must first go to a designated third port (such as Hong Kong) for formal transshipment after leaving the Mainland China port and obtain a customs clearance certificate before it can sail directly to a Taiwan port for discharging.

• If Non-China flagged vessels need to load and discharge cargo not between the two sides of the Taiwan Strait, but must sail between the two sides (such as Singapore-Mainland China-Taiwan-South Korea), and the cargo is loaded and discharge in a third place other than the two sides of the Taiwan Strait, they do not need to apply for a cross-strait shipping license (MOC), but they must sail between the designated open 72 ports in Mainland China and 15 ports in Taiwan in accordance with regulations.
  
  For Example:
  After loading cargo in Singapore, Singapore-flagged vessel sail to Mainland China ports (Dalian) for partial loading/discharging, and then continue to Taiwan ports (Kaohsiung) for loading/discharging and continue to sail to other countries (Korea) or Mainland China (72 designated open ports in Mainland China). There is no need to apply for cross-strait shipping permits, but between cross-strait ports, they must comply with regulations to sail between the designated open 72 ports in Mainland China and 15 ports in Taiwan. However, only non-cross-strait (cargo loaded in Singapore is allowed) cargo can be discharge. Cargo loaded in Mainland China cannot be directly discharging at Taiwan ports. Otherwise, the first provision will apply to sailing to designated third ports for formal transshipment, vice versa.

To be clear, cargo between the two sides (Taiwan and Mainland China) can’t be directly loaded and discharging without applying for a shipping permit (MOC), vice versa.

For further information or inquiries, please contact our Taiwan team.

Disclaimer:
This communication has been prepared for general information only. To the maximum extent permitted by law, Wilhelmsen and its affiliated companies, its and their employees, directors, agents, contractors (of any tier) and partners shall not be liable for any loss, claim, charge, damage, liability or damages howsoever arising in connection with the information even if advised of the possibility of damages. The use of the information shall be at your sole risk. Information contained herein comes with no representation or warranty (express or implied) and specifically is not represented or warranted to be correct, complete, accurate or up to date. The information is provided on an “as is” and “as available” basis and is not intended to be relied upon in any way. You shall be solely responsible for the selection, use, efficiency and suitability of the information. The contents and this article is intended for the 'Port News Newsletter' recipient only and shall not be distributed or published without the written consent of Wilhelmsen Port Services, you are welcome to instruct other potential recipients to subscribe to this newsletter.