· Document Number：No.489 [2010] of the Maritime Safety Administration

· Area of Law： Civil Law

· Level of Authority： Departmental Regulatory Documents

· Date issued：09-30-2010

· Effective Date：09-30-2010

· Issuing Authority： Maritime Safety Administration of the People's Republic of China

· Status： Effective

Notice of the Maritime Safety Administration on Issues Concerning the Implementation of the Measures of China for the Implementation of Civil Liability Insurance for Vessel-induced Oil Pollution Damage
(No.489 [2010] of the Maritime Safety Administration)
All directly subordinate maritime safety administrations, and the relevant shipping companies and vessel insurance institutions:
The Measures of the People's Republic of China for the Implementation of Civil Liability Insurance for Vessel-induced Oil Pollution Damage (hereinafter referred to as “Measures”) were promulgated by the Ministry of Transport on August 19, 2010 and came into force on October 1, 2010. We hereby notify you of the relevant issues concerning the implementation of the Measures as follows:
I. Insurance coverage and amount
Vessels carrying oil substances and vessels carrying non-oil substances with a gross tonnage greater than 1,000 which are navigating within the sea areas of China shall buy corresponding civil liability insurance for oil pollution damage or obtain other financial security under Article 4 of the Measures, and the insurance amount shall be not less than the limits specified in Articles 5 through 7 of the Measures. In particular, Article 7 is not applicable to vessels carrying persistent oil substances in bulk (which means that Article 7 is not applicable to circumstances described in Article 5).
Vessels of Chinese registry shall have corresponding certificates of civil liability insurance for vessel-induced oil pollution damage as set forth in Article 13 of the Measures, while vessels of foreign registry shall have corresponding insurance certificates, insurance documents or other financial security testimonies on the civil liability for vessel-induced oil pollution damage as set forth in Article 17 of the Measures.
II. Selection and announcement of insurance institutions
The Maritime Safety Administration will select and announce insurance institutions undertaking the civil liability insurance for vessel-induced oil pollution damage for vessels of Chinese registry pursuant to the Measures. Insurance institutions shall meet the requirements of Articles 9 and 10 of the Measures and, before October 15 of each year, submit materials as set forth in Article 11 of the Measures to the Maritime Safety Administration. As an exception, the deadline for 2010 is November 15. The Maritime Safety Administration will examine the accepted application materials, select insurance institutions which meet the requirements prescribed by the Measures after soliciting the opinion of the insurance regulatory authority of the State Council, and announce them to the public before November 30 of each year. If any institution falls under any of the circumstances mentioned in Article 20 of the Measures, the Maritime Safety Administration will not select and announce it within three years from the year next to the year when its violation is uncovered.
III. Certificate application
A vessel of Chinese registry shall apply to the directly subordinate maritime safety administration at the locality of its port of registry for the corresponding certificate of civil liability insurance for vessel-induced oil pollution damage upon the strength of the application materials as specified in Article 14 of the Measures. An applicant for reissuing a certificate after the original one is lost shall give reasons in writing and submit the relevant documentary evidence to the original issuing organ.
A directly subordinate maritime safety administration shall, after accepting such an application, examine the application materials from the following aspects:
1. Whether the application materials are integrated and valid;
2. Whether the insurance object meets the conditions as set forth in Article 4 of the Measures;
3. Whether the insurance institution has been selected and announced by the Maritime Safety Administration; and
4. Whether the insurance amount meets the conditions as set forth in Articles 5 through 7 of the Measures.
If it has been expressly indicated in the insurance documents or other financial security testimonies that “This is to certify that there is in force in respect of the above-named ship while in above-named ownership a policy of insurance or any other financial security satisfying the requirements of the Measures of the People's Republic of China for the Implementation of Civil Liability Insurance for Vessel-induced Oil Pollution Damage”, the insurance amount is not required to be indicated in the insurance documents or other financial security testimonies. The previous documents promulgated by the Maritime Safety Administration regarding the implementation of the International Convention on Civil Liability for Oil Pollution Damage, 1992 and the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 are still effective.
IV. Issuance of certificates
Each directly subordinate maritime safety administration shall, within 7 workdays after accepting an application which meets the conditions of the Measures, issue a corresponding certificate of civil liability insurance for vessel-induced oil pollution damage to the vessel. The valid period of the certificate may not exceed the term of the civil liability insurance contract or other financial security testimony for vessel-induced oil pollution damage.
A certificate of civil liability insurance for vessel-induced oil pollution damage includes an original and a duplicate. The original shall be retained at the vessel for future reference, while the duplicate shall be retained at the issuing organ. The procedure for issuing certificates shall be the same as that of the Maritime Safety Administration for issuing the Certificate of Civil Liability Insurance or Other Financial Security for Vessel-induced Oil Pollution Damage. The format of the Certificate of Civil Liability Insurance or Other Financial Security for Vessel-induced Oil Pollution Damage issued under the International Convention on Civil Liability for Oil Pollution Damage, 1992 and the Certificate of Civil Liability Insurance or Other Financial Security for Bunker Oil Pollution Damage issued under the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 shall be still the current format. The format of the Certificate of Civil Liability Insurance or Other Financial Security for Non-persistent Oil Pollution Damage shall be determined by the Maritime Safety Administration in another initiative. All certificates shall be made under the supervision of the Maritime Safety Administration. No entity may make any certificates by itself.
All directly subordinate maritime safety administrations shall report detailed information (including the name, serial number, vessel name, port of registry and name of the insurer) about certificates issued by you to the Maritime Safety Administration for archival purposes before the end of each year.
V. Check of certificates
The maritime administrations at all levels shall strengthen the check over the insurance certificates, insurance documents or other financial security testimonies for the civil liability for vessel-induced oil damage. For a vessel of Chinese registry which carries non-persistent oil substances with a gross tonnage greater than 1,000, the insurance object shall cover the pollution damage caused by non-persistent oil substances from the day when its certificate is renewed the next time. The check upon vessels carrying non-persistent oil substances with a gross tonnage less than 1000 and coastal transport vessels carrying persistent oil substances in bulk with a gross tonnage greater than 1200 shall not start until March 1, 2011. The check upon vessels carrying persistent oil substances in bulk with a gross tonnage less than 1200 shall not start until October 1, 2011 pursuant to Article 24 of the Measures.
The maritime administrations at all levels shall, when handling the approval of administrative licensing issues of vessels of international voyage at the ports of entry or handling the port entry and exit visas for coastal transport vessels, ask vessels or their agents to submit the corresponding certificate on civil liability for bunker oil pollution damage, and check the authenticity and validity of the certificate on civil liability for bunker oil pollution damage in the on-site inspection of vessels, if necessary. Any violation of the Measures shall be handled pursuant to the Regulation on the Prevention and Control of Vessel-induced Pollution to the Marine Environment and the Measures.
Entities, when having any difficulty or problem in the process of implementation, shall report it to the Maritime Safety Administration without delay.
September 30, 2010