Foreign shipping companies mentioned in the preceding paragraph refer to shipping enterprises established in foreign countries according to foreign laws (hereinafter referred to as foreign airlines). Article 3 The Ministry of Commerce and the Ministry of Transport are responsible for establishing and managing wholly foreign-owned shipping companies in China. Article 4 The establishment of a wholly-owned shipping company by a foreign air carrier within the territory of China must be examined and approved in accordance with the maritime agreement and relevant legal documents signed by the government of China and the government of the country where the foreign air carrier is located. Article 5 To establish a wholly-owned shipping company, the applicant shall meet the following conditions:
(a) engaged in shipping work 15 years or more;
(2) Having a stable source of goods or tourists in the port city of China where a wholly-owned shipping company is to be established;
(3) Its business activities in China have not violated the laws, administrative regulations and rules of China for two consecutive years. Article 6 To apply for the establishment of a wholly-owned shipping company, the applicant shall submit the following documents:
(1) an application;
(2) Feasibility study report;
(3) Articles of association;
(4) Legal documents and credit documents of the applicant;
(5) The letter of appointment of the legal representative of the wholly-owned shipping company, the list of board members and their resumes;
(six) the applicant's bill of lading and sample;
(7) Other documents required by the Ministry of Commerce and the Ministry of Transport. Article 7 An application for the establishment of a wholly-owned shipping company shall be handled in accordance with the following procedures:
(a) the applicant shall, in accordance with the provisions of the People's Republic of China (PRC) Law on Enterprises with Foreign Investment and other laws, administrative regulations and rules, go through the relevant formalities with the competent commercial authorities with corresponding management authority;
(2) An applicant shall, in accordance with the relevant provisions on company registration, register the establishment of an enterprise with the administrative department for industry and commerce, obtain a business license, and apply for the business license of a wholly foreign-owned shipping company with the corresponding administrative authority before engaging in business activities. Article 8 An approved wholly-owned shipping company or its branches may engage in all or part of the following businesses for ships owned or operated by its parent company: soliciting goods, attracting passengers, issuing bills of lading, issuing passenger tickets, settling freight charges and signing service contracts. Article 9 A wholly-owned shipping company may apply for establishing branches in other port cities according to its business needs. A wholly-owned shipping company shall meet the following conditions when establishing a branch:
(1) Opening of a wholly-owned shipping company 1 year;
(two) the parent company of a wholly-owned shipping company has a stable supply of goods or customers in the open cities of foreign ports where it intends to set up branches;
(3) The business activities of the wholly-owned shipping company and its parent company in China for 1 year have not violated the laws, administrative regulations and rules of China.
The application procedures for the establishment of a branch of a wholly-owned shipping company shall be handled in accordance with the provisions of Article 7 of these Measures. Article 10 A wholly-owned shipping company shall report its operation in the previous year to the Ministry of Commerce and the Ministry of Transport before the end of April each year. The business report shall include the following contents:
(a) Routes connecting with the port of China;
(2) The total number of employees and the number of employees in China;
(3) China port freight volume (10,000 tons), passenger volume (person-times), container volume (TEU) and freight revenue;
(4) Total turnover, total profit and total tax payment in the current year. Article 11 Shipping enterprises from China Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Province Province shall set up wholly-owned shipping companies in other provinces, autonomous regions and municipalities directly under the Central Government in China, which shall be handled with reference to these Measures. Article 12 These Measures shall come into force as of the date of promulgation.