Law of China on the Exploration and Development of Resources in Deep Seabed Areas

· Document Number：Order No. 42 of the President

· Area of Law： Resources

· Level of Authority： Laws

· Date issued：02-26-2016

· Effective Date：05-01-2016

· Status： Effective

· Issuing Authority： Standing Committee of the National People's Congress

Order of the President of China
(No. 42)
Law of China on the Exploration and Development of Resources in Deep Seabed Areas, as adopted at the 19th Session of the Standing Committee of the Twelfth National People's Congress of the People's Republic of China on February 26, 2016, is hereby issued and shall come into force on May 1, 2016.
President of the People's Republic of China: Xi Jinping
February 26, 2016
Law of the People's Republic of China on the Exploration and Development of Resources in Deep Seabed Areas
(Adopted at the 19th Session of the Standing Committee of the Twelfth National People's Congress on February 26, 2016)
Table of Contents
Chapter I General Provisions
Chapter II Exploration and Development
Chapter III Environmental Protection
Chapter IV Scientific and Technological Research and Resource Investigation
Chapter V Supervision and Inspection
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is developed for purposes of regulating the exploration and development of resources in deep seabed areas, promoting deep sea scientific and technological research and resource investigation, protecting the marine environment, promoting the sustainable utilization of resources in deep seabed areas, and protecting the common interests of mankind.
Article 2 This Law shall apply to the exploration and development of resources in deep seabed areas, the relevant environmental protection, scientific and technological research, and resource investigation activities conducted by citizens, legal persons or other organizations of the People's Republic of China.
For the purpose of this Law, “deep seabed areas” means seabed, ocean floor and their subsoil outside the jurisdiction of the People's Republic of China and other countries.
Article 3 The exploration and development of resources in deep seabed areas shall be conducted under the principles of peaceful utilization, cooperation and sharing, environmental protection and protection of the common interests of mankind.
The state shall protect the lawful rights and interests of citizens, legal persons or other organizations of the People's Republic of China that conduct the exploration, development and investigation of resources in deep seabed areas.
Article 4 The state will make plans on the exploration and development of resources in deep seabed areas, and adopt economic and technical policies and measures to encourage deep sea scientific and technological research and resource investigation and enhance the capability of resource exploration and development and the protection of the marine environment.
Article 5 The oceanic administration of the State Council shall be responsible for the supervision and administration of the exploration, development and investigation of resources in deep seabed areas. Other relevant departments of the State Council shall be responsible for the relevant administration according to the functions prescribed by the State Council.
Article 6 The state encourages and supports international cooperation in terms of the exploration and development of resources in deep seabed areas, the relevant environmental protection, resource investigation, scientific and technological research, education and training, among others.
Chapter II Exploration and Development
Article 7 A citizen, legal person or any other organization of the People's Republic of China shall, before applying to the International Seabed Authority for the exploration and development of resources in deep seabed areas, file an application with the oceanic administration of the State Council, and submit the following materials:
(1) Basic information on the applicant.
(2) An explanation on the location and area of the region that the applicant intends to explore and develop, and categories of minerals.
(3) Certificates of financial status and investment ability, and an explanation on technical capability.
(4) An exploration and development plan, including the materials on the possible impact of exploration and development activities on the marine environment, and an emergency response plan for serious damage to the marine environment, among others.
(5) Other materials required by the oceanic administration of the State Council.
Article 8 The oceanic administration of the State Council shall examine the materials submitted by the applicant. If the application is in national interest and the applicant has funds, technologies, equipment and other capabilities and conditions, the oceanic administration shall grant a license to the applicant within 60 working days, and issue the relevant documents to the applicant.
The applicant that obtains the license cannot conduct exploration and development activities until it has entered into an exploration and development contract with the International Seabed Authority and become the contractor.
The contractor shall submit the duplicate of the exploration and development contract to the oceanic administration of the State Council for recordation within 30 days as of the conclusion of the contract.
The oceanic administration of the State Council shall notify the information on the contractor, the location and area of the region explored and developed by the contractor and other information to the relevant authority.
Article 9 A contractor shall enjoy corresponding exclusive rights to explore and develop specific resources within the region specified in the exploration and development contract.
The contractor shall perform obligations under the exploration and development contract, guarantee the personal safety of the personnel conducting exploration and development operations, and protect the marine environment.
The contractor that conducts exploration and development operations shall protect cultural relics, and paving things, among others, within the operation area.
The contractor that conducts exploration and development operations shall also abide by the laws and administrative regulations of the People's Republic of China on work safety and labor protection.
Article 10 A contractor shall, before the transfer of rights and obligations under an exploration and development contract, or major modification to an exploration and development contract, report to the oceanic administration of the State Council for approval.
The contractor shall, within 30 days as of the transfer, modification or termination of the exploration and development contract, report it to the oceanic administration of the State Council for recordation.
The oceanic administration of the State Council shall, in a timely manner, notify the information on the transfer, modification or termination of the exploration and development contract to the relevant authority.
Article 11 Where an accident causing serious damage to the marine environment occurs or may occur, the contractor shall immediately initiate the emergency response plan, and take the following measures:
(1) Immediately sounding an alarm.
(2) Immediately reporting to the oceanic administration of the State Council, and the latter shall notify the relevant authority in a timely manner.
(3) Taking all feasible and reasonable measures to prevent, reduce and control the damage to persons, property, and the marine environment.
Chapter III Environmental Protection
Article 12 A contractor shall, within the reasonable and feasible scope, utilize available advanced technologies and take necessary measures to prevent, reduce and control pollution and other damage caused to the marine environment by activities in the exploration and development region.
Article 13 A contractor shall, according to the stipulations and requirements of the exploration and development contract, and the provisions of the oceanic administration of the State Council, investigate and conduct research on the oceanic conditions of the exploration and development region, determine the base line of environment, and assess the possible impact of exploration and development activities on the marine environment; make and implement an environmental monitoring plan, monitor the impact of exploration and development activities on the marine environment of the exploration and development region, ensure the normal operation of monitoring equipment, and retain original monitoring records.
Article 14 A contractor that conducts exploration and development activities shall take necessary measures to protect and preserve rare or fragile ecological systems, and the living environment of weakened, threatened or endangered species and other marine organisms, protect the diversity of marine organisms, and maintain the sustainable utilization of marine resources.
Chapter IV Scientific and Technological Research and Resource Investigation
Article 15 The state supports deep sea scientific and technological research and the cultivation of professional talents, and will include deep sea science and technology in the priority fields of scientific and technological development, and encourage research cooperation with the relevant industries.
The state supports enterprises' deep sea scientific and technological research and research and development of technical equipment.
Article 16 The state supports the construction and operation of the deep sea public platform, and will establish the sharing and cooperation mechanism for the deep sea public platform, provide professional services for deep sea scientific and technological research and resource investigation activities, and promote deep sea scientific and technological exchange, cooperation and result sharing.
Article 17 The state encourages entities and individuals to conduct deep sea science popularization activities by multiple forms such as opening vessels for scientific investigation, laboratories, exhibition rooms and other places and facilities, holding seminars and providing consulting services.
Article 18 Citizens, legal persons or other organizations that conduct the investigation of resources in deep seabed areas shall, according to the relevant provisions, summarize and submit the duplicates of relevant materials, and physical samples or catalogue to the oceanic administration of the State Council and other relevant departments. The departments responsible for accepting the submission shall register and preserve the materials and physical samples submitted, and provide them to the public for utilization according to the relevant provisions.
The provisions of the preceding paragraph shall apply to the summary and submission of relevant materials, and physical samples, among others, obtained by contractors from the exploration and development of resources in deep seabed areas.
Chapter V Supervision and Administration
Article 19 The oceanic administration of the State Council shall conduct supervision and inspection of contractors' exploration and development activities.
Article 20 Contractors shall, on a periodical basis, report the following matters on the performance of exploration and development contracts to the oceanic administration of the State Council.
(1) Information on exploration and development activities.
(2) Environmental monitoring.
(3) Annual investment.
(4) Other matters required by the oceanic administration of the State Council.
Article 21 The oceanic administration of the State Council may inspect contractors' vessels, facilities and equipment used for exploration and development activities as well as logbooks, records, and data, among others.
Article 22 Contractors shall assist and cooperate in the supervision and inspection conducted by the oceanic administration of the State Council.
Chapter VI Legal Liability
Article 23 Where anyone commits any of the following conduct in violation of the provision of Article 7, paragraph 2 of Article 9, or paragraph 1 of Article 10 of this Law, the oceanic administration of the State Council may revoke the license and withdraw the relevant documents:
(1) It obtains the license by providing false materials.
(2) It fails to perform the obligations under an exploration and development contract or fails to perform contractual obligations as agreed.
(3) It transfers the rights and obligations under an exploration and development contract or makes any material modification to an exploration and development contract without approval.
Where the contractor commits the conduct mentioned in item (2) of the preceding paragraph, it shall also assume the corresponding liability for compensation.
Article 24 Where anyone commits any of the following conduct in violation of the provision of paragraph 3 of Article 8, paragraph 2 of Article 10, Article 18, Article 20 or Article 22 of this Law, the oceanic administration of the State Council shall order it to take corrective action, and impose a fine of not less than 20,000 yuan but not more than 100,000 yuan on it.
(1) It fails to submit the duplicate of an exploration and development contract for recordation as required.
(2) It transfers, modifies or terminates an exploration and development contract but fails to report it for recordation as required.
(3) It fails to summarize and submit the duplicates of relevant materials, physical samples or catalogue as required.
(4) It fails to report the matters on the performance of an exploration and development contract as required.
(5) It fails to assist or cooperate in supervision and inspection.
Article 25 Where anyone, in violation of the provision of paragraph 2 of Article 8 of this Law, conducts the exploration and development of resources in deep seabed areas without a license or conclusion of an exploration and development contract, the oceanic administration of the State Council shall order it to cease the violation of law, and impose a fine of not less than 100,000 yuan but not more than 500,000 yuan on it; and confiscate its illegal income, if any.
Article 26 Where anyone violates the provision of paragraph 3 of Article 9, Article 11 or Article 12 of this Law, which causes pollution or damage to the marine environment, or damage to cultural relics and paving things, among others, within the operation area, the oceanic administration of the State Council shall order it to cease the violation of law, and impose a fine of not less than 500,000 yuan but not more than one million yuan on it; and if any crime is constituted, it shall be subject to criminal liability in accordance with the law.
Chapter VII Supplementary Provisions
Article 27 For the purpose of this Law, the following terms shall have the following meanings:
(1) “Exploration” means the searching and analysis of resources in deep seabed areas, use and testing of resource collection systems and equipment, processing facilities and transport systems, as well as the research on environment, technologies, economy, commerce and other relevant factors that shall be considered at the time of development.
(2) “Development” means the recovery and selection of resources in deep seabed areas for business purposes, including the construction and operation of collection, processing and transport systems serving the production and sale of resources.
(3) “Resource investigation” means the searching of resources in deep seabed areas, including estimates of the components, quantity, distribution and economic value of resources.
Article 28 The tax-related matters in the development of resources in deep seabed areas shall be governed by the provisions of taxation laws and administrative regulations of the People's Republic of China.
Article 29 This Law shall come into force on May 1, 2016.