Pollution Regulations - China

Regulations issued in 2010 by the People’s Republic of China on the Prevention and Control of Marine Pollution from Ships  include provision for operators of vessels carrying hazardous and polluting liquid cargoes in bulk to conclude a pollution clean-up contract with an approved Oil Spill Response Organisation (OSRO) prior to entering a Chinese port.  Pollution response companies are categorised into four levels of ability according to the level of service they are qualified to provide and ship operators are required to contract with an approved OSRO in accordance with the size and type of vessel. 

 

While the term “operator” is defined by the China Maritime Safety Administration (MSA) as the owner, manager or actual operator of a ship, for the purposes of concluding and signing the contract a branch company, office or agent located in mainland China (not Hong Kong or Macau) should sign the contract when the operator is not domiciled in China. A partial list of approved contractors was issued in late 2011  and on 30 December the MSA published a list of approved consortia or “umbrella” agreements whereby operators will be permitted to contract with a single company representing a number of affiliated organisations providing coverage for multiple ports.  At the same time there are unconfirmed reports that some areas will be postponing enforcement of the regulation until February 2012 or later. 

 

Since there is still some confusion surrounding the issue it is recommended that ship operators keep close contact with their P and I Clubs when considering trading in China.