Thursday 19 November 2009

China : forthcoming requirement to contract with an approved local clean up contractor

Further to our discussion of the new chinese marine pollution regulations, we have to mention the requirement to contract with an approved local cleanup contractor.

The regulations will require the operators (the term "Operators" is not yet defined in the regulations ) to conclude the polution cleanup contract with an approved by MSA (the PRC's Marine Safety Agency) polution response company before calling any PRC port.

For the time being, it is understood that the mentioned clean up contractors will bear responsibility for carrying out clean up operations in case of an incident under the supervision of MSA. There will be more than one contractor in every chinese port.

The contractors have to be approved by MSA as well as the kind of response contracts that will be concluded between the operators and the contractors.

It is known that MSA will try to complete approval of applications of responders within 30 working days, however this may result in a very short period of time within which operators will be able to conclude the contracts before 1 March 2010. An extension may be given, but, since such extension is not forthcomming, every effort should be given to ensure compliance by 1 March 2010.

A breach of regulations may brings fines amounting from RMB 10,000 to 300,000 depending on the breach.

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