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CHINA UPDATE
OCTOBER 26, 2010
NVOCC’S NEW CHINA OPTION: INSURANCE
REFUND OF CASH DEPOSIT
On October 8, 2010 the China Ministry of Transport (“MOT”) issued a notice to test a NVOCCs’ liability insurance in place of the 800,000RMB cash deposit which is currently required for
NVOCCs participating in China global trade lanes. This development would provide an option to NVOCCs in the China World-wide trades to either purchase an NVOCC liability insurance with a qualified insurance company
or to continue to meet the requirement with a cash deposit. Pursuant to this notice, starting from November 1, 2010, an MOT licensed NVOCC or NVOCC applicant may choose the insurance option.
A qualified insurance company must be registered in China and qualified by the China Insurance Regulatory Commission.
The insurance products must also be qualified by the MOT as well as filed or approved by the China Insurance Regulatory Commission. The qualified insurance company must execute an NVOCC liability insurance agreement undertaking to perform its responsibility in accordance with the agreement. The NVOCC liability insurance only covers liability incurred due to an NVOCC’s non-performance or inappropriate performance of its NVOCC duties, and does not cover any penalties.
The NVOCCs that obtained the NVOCC licenses from the MOT before October 31, 2010 may request refunds of the current cash deposits (over $100,000.00) after purchasing this NVOCCs liability
insurance. Contact: Carlos Rodriguez rodriguez@rorlaw.com; Henry Gonzalez gonzalez@rorlaw.com; Zheng Xie zxie@rorlaw.com .
China NVOCC Freight Filing
In view of the approaching deadline of NVOCCs’ filings of freight pursuant to China Ministry of Transport new rules, we are preparing a self-filing customer tailored model in Chinese to
assist our clients and/or their Chinese agents in meeting the filing requirements of the Shanghai Shipping Exchange. The new rules went into effect October 1, 2010 with a sixty day grace period.
If you need any assistance on this topic, contact Carlos Rodriguez, Esq. at rodriguez@rorlaw.com or Zheng Xie zxie@rorlaw.com.
THE FOURTH CHINA-U.S. MARITIME MEETINGS
China and U.S. officials had the fourth China-U.S. Maritime Meeting at Dalian China last week. Wu Zude, Deputy Minister of China Ministry of Transport, and David T. Matsuda, the
U.S. Maritime Administrator, on behalf of each government, executed memorandum. Also in attendance was Rebecca Fenneman, General Counsel, Federal Maritime Commission. During the meeting the officials discussed
various maritime-related issues, including China’s freight filing rules, U.S. port charges, etc. Official releases of the meeting have not yet been released by either MARAD or the FMC. Anything impacting
topics of interest to the shipping industry will be promptly eported.
Editor: Carlos Rodriguez, Esq.
A Publication of Rodriguez O’Donnell Gonzalez & Williams © 2007
1250 Connecticut Avenue, N.W., Suite 200, Washington, D.C. 20036
(202) 973-2999 Fax: (202) 293-3307, e-mail: rodriguez@rorlaw.com, Web Site: www.rorlaw.com
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