The following regulations are promulgated pursuant to the provision of Paragraph 3, Article 30 of the Act Governing the Relations between Peoples of the Taiwan Area and the Mainland Area.

The term “Offshore Shipping Center” mentioned hereinafter refers to international commercial ports and related regions within the territory of the Taiwan Area designated to the shipment, transshipment and related procedures of processing, reconditioning and storage of cargoes exported from the Mainland Area to a third area or vice versa.
For further processing or operations, cargoes of the Offshore Shipping Centers referred to in the preceding paragraph are allowed to be transferred in bonded status to Free Ports, Export Processing Zones, Science Based Industrial Parks, Bonded Factories, private Bonded Warehouses, and Bonded Warehouses and Logistics Centers that have been approved by the Customs for conducting cargo reconditioning, provided that all the cargoes are to be exported after processing or operations.
Cargoes to be shipped or transshipped referred to in the first paragraph, or cargoes that have undergone further processing or operations referred to in the preceding paragraph may be exported or transshipped by way of sea-to-sea, air-to-air, or sea-to-air transportation; however, cargoes destined for the Mainland Area are only allowed to be shipped by maritime transportation.

The Ministry of Transportation and Communications shall coordinate with the relevant authorities in order to designate appropriate locations among the international commercial ports in the Taiwan Area for the establishment of the Offshore Shipping Centers.

Shipping routes between the Offshore Shipping Centers and ports of the Mainland Area shall be designated as special shipping routes.

Vessels sailing directly among the designated Offshore Shipping Centers and ports of the Mainland Area shall be limited to the following foreign vessels:
1. Foreign vessels operated by foreign shipping carriers;
2. Foreign vessels operated by shipping carriers of the Republic of China;
3. Foreign vessels operated by shipping carriers of the Mainland Area.

Foreign vessels shipping or transshipping cargoes from the Mainland Area to a third area or vice versa, with the approval of the local shipping administration authority, may sail directly among the designated Offshore Shipping Centers and ports of the Mainland Area.

Shipping carriers of the Republic of China or foreign shipping carriers with branch office(s) in the Taiwan Area who wish to conduct business in an Offshore Shipping Center must provide an application form, a business operation plan, a list of its vessels’ particulars, a schedule of voyages and other relevant documents to apply for shipping routes and permission for business operation with the local shipping administration authority, and may only commence its undertakings with the said authority’s permission.
Foreign shipping carriers with no branch offices in the Taiwan Area and shipping carriers of the Mainland Area desiring to conduct business activities in an Offshore Shipping Center must authorize a shipping agent in the Republic of China to apply for shipping routes and permission for business operation on its behalf in accordance with the provision of preceding paragraph, and may only commence its undertakings with the said authority’s permission.
Validity of permission for the shipping routes and business operation parties mentioned in the two preceding paragraphs have a term of two years. Reapplications and applications for changes must be submitted one month before expiration.
When necessary, the shipping administration authority may request businesses operating parties in the Offshore Shipping Centers to provide their handling volume and other related documents for reference or examination.

Foreign vessels with permission to sail directly between the Offshore Shipping Centers and ports of the Mainland Area may not carry any cargo from the Taiwan Area that is destined for the Mainland Area, or cargo from the Mainland Area that is destined for the Taiwan Area.

Arms and ammunition shipped from the Mainland Area to a third area and vice versa may not be transshipped through the Offshore Shipping Centers.

Relevant port authorities at the concerned ports must monitor all cargoes processed in the Offshore Shipping Centers so as to prevent smuggling and any disruption to public order and safety.

In order to promote and facilitate the operation of the Offshore Shipping Centers, each executive agency in charge of operations related to the said Centers shall propose and submit relevant operational rules and execute these rules once approved by the respective authorities in charge.

Vessels sailing directly between the Offshore Shipping Centers and ports of the Mainland Area not in accordance with the provision of the regulations will have their carrier’s permit for shipping routes and business operation revoked by the local shipping administration authority, and will also be subject to the provisions of Articles 30 and 85 of the Act Governing the Relations between Peoples of the Taiwan Area and the Mainland Area.

These Regulations shall come into force on the date of promulgation.

(The Chinese text is the only authentic text which shall be given priority if there is discrepancy between the Chinese text and this translation version)