· Area of Law： Traffic and Transport

· Level of Authority： Group Provisions

· Date issued：11-04-2008

· Effective Date：12-15-2008

· Status： Effective

· Issuing Authority： Association for Relations Across the Taiwan Straits

Cross-strait Sea Transport Agreement
(November 4, 2008)
To realize direct cross-strait sea transport of passengers and cargoes, enhance economic and trade exchanges and facilitate the visits of the people on both sides of the strait, upon equal negotiations, the Association for Relations across the Taiwan Strait (ARATS) and the Straits Exchange Foundation (SEF) have reached an agreement on the direct sea transport of passengers and cargoes across the strait as follows:
I. Operation Qualification
Both parties agreed that vessels owned by and registered on either side of the strait may engage in direct cross-strait transport of passengers or cargoes upon approval.
II. Ports for Direct Cross-strait Transport
Both parties agreed to open the major open ports to each other according to the market demand.
III. Vessel Identification
Both parties agreed that vessels registered on either side shall fly the company flags for vessel identification between entering and leaving the other side's ports but are abstained from flying their flag on the stern or mainmast of vessels.
IV. Port Services
Both parties agreed to provide convenience for each other in handling the customs formalities of passengers or cargoes and other port administration issues.
V. Transport Capacity Arrangements
Both parties agreed to make rational arrangements of transport capacity on the principles of equal participation and orderly competition according to market demands.
VI. Mutual Tax Exemption
Both parties agreed to mutually exempt each other's shipping companies from the business and income taxes on their revenues derived from participation in direct cross-strait shipping.
VII. Disaster Rescue Cooperation
Both parties agreed to actively enhance the cooperation between the marine search and rescue institutions of both sides and set up a search and rescue liaison and cooperation mechanism so as to jointly protect the safety of marine navigation, life, property and the environment at sea. When an accident occurs at sea, the two sides, in addition to promptly notifying each other, shall promptly undertake rescue and assistance in accordance with the principles of proximity and convenience.
VIII. Supplementary Issues
Both parties agreed to follow the sea transport practices and norms and strengthen cooperation in handling issues concerning shipping communication and navigation, license check, ship survey, seamen service, navigation guarantee, pollution prevention and control and maritime disputes.
IX. Mutual Establishment of Entities
The shipping companies of either side may set up offices or business entities at the other side of the strait to facilitate business operations.
X. Liaison Bodies
1. Communications on the matters agreed-to in this Agreement shall be handled by and between the Cross-Strait Sea Transport Exchange Association and the Taiwan Cross-strait Sea Transport Association. Both sides may designate other institutions for such purposes upon mutual consent if necessary.
2. Communications regarding other matters relating to this Agreement shall be handled by the ARATS and SEF.
XI. Fulfillment of and Modification to this Agreement
1. Both parties shall abide by this Agreement. The Annex to this Agreement has equal legal force as this Agreement.
2. Any modification to this Agreement shall be made upon the consent of both parties and confirmed by both parties in written form.
XII. Dispute Settlement
For any dispute arising from the application of this Agreement, both parties shall settle it through negotiations as soon as possible.
XIII. Other Issues
Issues not stipulated in this Agreement shall be negotiated separately by both parties in an appropriate way.
XIV. Effectiveness
This Agreement shall come into force within forty days from the day when it is signed by both parties.
This Agreement was signed on the fourth day of November in quadruplicate with each party holding two.
Annex: Arrangements on Direct Cross-strait Shipping Vessels and Ports
Association for Relations across the Taiwan Strait Straits Exchange Foundation
President Chen Yunlin President Chiang Pin-kung
Annex:
Arrangements on Direct Cross-strait Shipping Vessels and Ports
Under Article 1 and Article 2 of this Agreement, we make the following specific arrangements upon negotiation:
I. Vessels owned by either side of the Taiwan Strait and registered in Hong Kong can similarly engage in direct cross-strait transport of passengers and cargoes. The identification of such vessels between entering and leaving either side's ports shall be analogically governed by provisions of the Summary of Hong Kong-Taiwan Talks on Sea Transport on Hong Kong vessels.
II. Flag-of-convenience vessels owned by either side of the Taiwan Strait and that are currently engaging in pilot direct cross-strait transport (offshore shipping center), cross-strait tri-regional container liner transport or sand and gravel transport can also participate in direct cross-strait transport of passengers and cargoes in accordance with the vessel identification provisions of this Agreement.
III. At the current stage, both parties agreed to open the following ports to each other:
The mainland opened 63 ports, namely the 48 sea ports of Dandong, Dalian, Yingkou, Tangshan, Jinzhou, Qinhuangdao, Tianjin, Huanghua, Weihai, Yantai, Longkou, Lanshan, Rizhao, Qingdao, Lianyungang, Dafeng, Shanghai, Ningbo, Zhoushan, Taizhou, Jiaxing, Wenzhou, Fuzhou, Songxia, Ningde, Quanzhou, Xiaocuo, Xiuyu, Zhangzhou, Xiamen, Shantou, Chouzhou, Huizhou, Shekou, Yantian, Chiwan, Mawan, Humen, Guangzhou, Zhuhai, Maoming, Zhanjiang, Beihai, Fangcheng, Qinzhou, Haikou, Sanya and Yangpu and the 15 river ports of Taicang, Nantong, Zhangjiagang, Jiangyin, Yangzhou, Changshu, Changzhou, Taizhou, Zhenjiang, Nanjing, Wuhu, Ma'anshan, Jiujiang, Wuhan and Chenglingji.
Taiwan opened 11 ports, namely the six ports of Keelung (including Taipei), Kaohsiung (including Anping), Taichung, Hualien, Mailiao and Budai (initially to be carried out on a special case basis) and the five “small three links” ports of Liaoluo and Shueitou of Kinmen, Fuao and Baisha of Matsu, and Magong of Penghu.
Both parties agreed to open more ports if so needed.