China Sets Interim Ship-Tonnage-Duty Regulations

On December 5, 2011, the State Council of China released its Decree No. 610, namely the Provisional Regulations on Ship Tonnage Duties of the People's Republic of China (hereinafter called "the Regulations"), which will be put into force on January 1, 2012.

The Customs Interim Measures on Ship Tonnage Duties of the P. R. China, which was ratified by China Government in Sept. 1952, will be abolished simultaneously then.

As per the Regulations, ships entering China's ports from external ports shall pay the ship tonnage duties that are divided into preferential rates and general rates.

The preferential rates herein apply to dutiable ships of Chinese nationality, and those of the registry with the countries/regions having pacts or agreement with China on mutually granting most-favored-nation treatment on ship duties; and the general rates herein apply to any other dutiable ships.

As per the Regulations, the tonnage duties shall be levied by China customs authorities, which shall issue relevant payment vouchers for their levy to the duty payers.

Upon the entry of the dutiable ships, ship operators shall declare to the customs to pay duties and receive/submit the Certificates for Ship Tonnage Duties; and upon their exit formalities with the customs, ship operators shall submit such certificates for customs inspection.