Chapter 2 Regulations for Vessel Carriers
Section 1 Vessel Carriers
Article 7
Any individual desiring to engage in maritime transportation as a vessel carrier shall apply to the shipping administration authority for examining and submitting to MOTC for approval of the organization of the company by enclosing (1)business plan, (2)specifications of construction or purchase of vessels, (3)total capital and(4) plan of raising funds and (5)other relevant documents.
The vessel carrier shall complete by law the Registration of Company, prepare at least one R.O.C-flagged vessel and file relevant documents within six (6) months from the approval of organization establishment. The vessel carrier shall then make an application to the shipping administration authority for examining and submitting to MOTC to issue a Vessel Carrier Permit, and only with that may the vessel carrier be allowed to commence its commercial activities.
In the event of the failure of the application for issuing the said Permit within the prescribed time limit as above, the permit of organization shall be revoked. However, with reasons justified, an extension may be applied for in thirty (30) days upon the expiry date; the extension period shall be subject to six months and twice.
Except when approved prior to the effect given to the present Law as amended on August 9, 1995, the organization of a vessel carrier shall be confined to limited companies.
Article 8
The vessel carrier shall commence operation within six months after receipt of the Permit. If it fails to do so, the permit shall be revoked and terminated by MOTC through a report made by the shipping administration authority. However, an application for extension may be accepted if it is supported by proper reason(s); the extension shall be for six months, once only.
Any vessel carrier that suspends its own business or loses its own vessel in Nationality of R.O.C. for six months shall surrender the Vessel Carrier Permit it received within thirty days from the second day after the six-month loss to the shipping administration authority for submission to MOTC for revocation. If it fails to do so, the permit shall be immediately revoked and cancelled by MOTC. However, an application for extension may be made if it is supported by proper reasons, but the extension shall be for six months and for one time only.
Any vessel carrier that closes its business shall surrender the Vessel Carrier Permit it received within thirty days after closing to the shipping administration authority for submission to MOTC for revocation. If it fails to do so, the permit shall be immediately revoked and cancelled by MOTC.
Article 9
Any vessel carrier desiring to alter the organization and name of its company shall apply to the shipping administration authority for ratification by submission to MOTC for approval and shall complete by law the Registration of Alterations of Company Information thereafter by applying to the shipping administration authority to submit to MOTC for replacing the Permit. The alterations made to the director, managers or other items in the legal registry shall be filed with the shipping administration authority for file and further inspection within thirty (30) days of completion of the registry of alteration.
Any vessel carrier desiring organization of the branch shall complete by law the registration of branch and within thirty (30) days of completion of the whole process, apply to the shipping administration authority for filing and inspection.
Article 10
Any vessel carrier that causes its vessels to be demolished or bareboat leased, mortgaged or sold abroad or altered with a non-ROC title shall apply, elaborating reasons, to the shipping administration authority for examining and submission to MOTC for file and further inspection.
Any vessel carrier operating chartered vessels in liner service shall apply to the shipping administration authority for file and further inspection.
Article 11
Any vessel carrier intending to construct vessels shall apply fundraising and specifications of vessel and operation to the shipping administration authority for file and further inspection.
Article 12
A vessel carrier intending to purchase existing vessels abroad shall submit beforehand for MOTC approval a proposal for purchase through the shipping administration authority. The vessels to be purchased shall not exceed allowable age limitations for import
Article 13
Any vessel carrier engaging in liner service shall apply to the shipping administration authority for registry of route by enclosing proposal for operation and related documents once vessel allocation has been completed.
For any changes made on the aforementioned registry, an application for registry change shall be made to the shipping administration authority.
Any vessel carrier engaging in liner service shall transport passengers and cargoes in accordance with the routes and schedules specified in the registry.
Any vessel carrier engaging in domestic liner service shall not decrease the sailing shifts or suspend them without due reason. The reduction or suspension, if any, shall be reported to shipping administration authority for file and inspection three (3) days prior to commencement for approval. Passengers shall be given notice by telecom network, newspaper or broadcast & TV. However, in case of notification failure arising out of force majeure, passengers shall be updated immediately and the shipping administration authority notified for rectification within three (3) days after the occurrence.
The aforementioned period of suspension shall be limited to six (6) months; however, justifying reasons shall be explicitly depicted while applying for extension with the shipping administration authority; the term of extension shall be limited to six (6) months, once only.
Article 14
Any vessel carrier shall subscribe to operator liability insurance in accordance with the amount provided by MOTC.
Any vessel carrier engaging in transportation of passengers shall subscribe to insurance covering injuries to passengers.
The beneficiary of the aforementioned insurance policy shall be limited to the insured party or his legal heir without being subject to paragraph 1, Article 132 and Article 135 applying mutatis mutandis to Article 105 & 107.
Upon expiry of the insurance mentioned in paragraph 1 & 2 of this Article the vessel carrier shall obtain renewal.
The execution, alteration, termination or dissolution of the insurance contracts mentioned in paragraph 1 & 2 of this Article shall be by written notice to MOTC by the vessel carrier and the surrender shall not be effective without the approval of MOTC; manner of insurance, threshold of insurance, coverage and other related matters shall be prescribed by MOTC on discussion with related authorities.
Article 15
Vessel carriers operating domestic liner service desiring to apply for a consortium system shall make an application, accompanied by the proposal for a consortium and relevant documents, to the shipping administration authority for submission to MOTC for approval.
The approaches in application, alteration, management, revocation and supervision of the aforementioned permit shall be prescribed by MOTC on discussion with related authorities.
Article 16
MOTC may, depending on the need, designate ROC vessel carriers to conduct transportation of passengers and cargoes in specific routes; any loss incurred therefrom shall be compensated by the government.
Approach as to condition, scope, manner and supervision and accreditation in the aforementioned compensation shall be prescribed by MOTC on discussion with related authorities.
Article 17
For the purpose of developing the economy of the nation as a whole, materials and instruments imported by government and public sectors shall be provided at reasonable prices and in compliance with open and fair contest principles by appropriate vessel carriers who are recommended by the dedicated institutes approved by MOTC.
The description, conditions applying to the procurement, procedures of approval and recommendation from the government, public sector and dedicated institutes, as well as management of such aforementioned materials and instruments shall be prescribed by MOTC in discussion with related authorities.
Article 18
If any foreign government or any foreign vessel carrier has taken any adverse measure against ROC vessel carriers, MOTC may conduct an investigation and consult with other relevant authorities to take necessary actions.
Article 19
Any vessel carrier must publish its company name, vessel names, ports of call and Vessel Carrier Permit No. in its advertisements soliciting passengers or cargoes; those carriers engaging in operation of liner service shall state sailing routes and schedules.
Article 20
Anyvessel carrier issuing cargo Bills of Lading or passenger tickets shall provide samples in advance to the shipping administration authority for file and further inspection; the same procedure shall be followed on alteration.
Article 21
Any vessel carrier issuing cargo Bills of Lading at the request of shippers may issue the same only after the cargoes are loaded on board vessels. No false onboard date is permitted to on such Bills of Lading.
Article 22
Any vessel carrier engaging in liner service shall file cargo and passenger fares with the shipping administration authority for file and further inspection and publish any information regarding the fares in telecom network, newspapers or magazines; any vessel carrier engaging in liner service shall publish information about fares at its place of business.
If such fares, rates or charges aforementioned be found apparently improper or disadvantageous to importation and exportation or the development of the shipping industry of the R.O.C., the shipping administration authority may order such carriers to make corrections and revisions. The authority may also suspend the effect of the whole or part of such implementations if it deems it necessary.
Article 23
Any vessel carrier engaging in domestic and international liner service shall collect freights against the fare list which was mentioned in paragraph 1 of the previous Article; however, preferred fares provided by both parties are excluded.
No vessel carrier may unreasonably discriminate against passengers or consigners.
Article 24
The shipping administration authority may, as it deems necessary, notify the vessel carriers to provide operational and financial information and other relevant documents for audit.
Article 25
For the purposes of ensuring national security, abetting the public interest, promoting the shipping industry and maintaining navigation order, MOTC may take necessary actions or notify vessel carriers to take necessary cooperative measures.
Article 26
Any vessel carrier desiring to engage in other businesses set forth in the present Law shall apply to and be approved by MOTC through the shipping administration authority pursuant to the provisions set forth in the present Act and the orders issued in pursuance thereof.
Article 27
MOTC shall undertake to prescribe and give effect to regulations for administrating vessel carriers' applications for minimum capital, organizations, issuance and replacement of permits, registrations of alterations of company information, ship construction, purchases, demolitions and sales, limits to the age of ships imported from overseas areas, operations, management, file and further inspection of the fare list, insurance amounts and permit fees collection.
Article 27-1
The employment of privately contracted armed security personnel shall be applied to vessel carriers operating R.O.C national vessels and sailing in sea areas with a high risk of being threatened by pirates or illegal forces.
The vessel carriers specified in the preceding paragraph shall attach relevant documents of individual vessels for reporting to the shipping administration authority for filing and inspection. The shipping administration authority shall provide this information to the Ministry of Interior, the Ministry of Finance and the Coast Guard Administration, Executive Yuan.
Vessel carriers shall order the privately contracted armed security personnel who possess firearms, ammunition and knives to embark (disembark) abroad, and prohibit them to enter any territory of R.O.C outside the vessels which have already reported for filing and inspection.
Sea areas with a high risk of the threats specified in Paragraph 1 are to be announced by the shipping administration authority.
Regulations governing the procedures of reporting for filing and inspection, vessel documents required to be attached, navigation plan, employment plans, documents of insurance plans and regulations governing the management, application rules, record and other requirements for private armed security personnel and their possession or use of firearms, ammunition, knives on the vessel should be prescribed by the competent authority in conjunction with the Ministry of Interior , the Ministry of Justice, the Ministry of Finance and the Coast Guard Administration, Executive Yuan.
The shipping administration authority should collect relevant unified information of foreign national private maritime security companies for vessel carriers’ reference.