On the 1-st of March, 2010, the shipping community expects the regulations of the People's Republic of China on prevention and control of marine polution from vessels to take effect. The regulation aims to govern polution prevention, response measures and clean up in PRC waters.
The legislation to take effect will include requirements to contract with approved oil spill response companies as well as the requirement to maintain insurance or any financial security to cover liabilities stemming from oil polution.
The regulations include a wide range of issues, e.g. the discharge of oil pollutants, spill response planning, obtaining permissions for dumping and dumping of wastes, clean-up arrangements, reporting, handling and investigating of polution incidents, compensations and penalties for not complying with regulations.
The regulations will introduce compulsary insurance regime for all ships of more than or equal to 1,000 gt carrying non-oil cargoes in order to cover claims stemming from oil polution.
Interestingly, the PRC ratifed the International Convention on Civil Liability for Bunker Oil Pollution damage (also known as 2001 Bunkers Convention) at the end of 2008, and the 1992 International Convention on Civil Liability for Oil Pollution Damage (1992 CLC) . However, the PRC is not a member to the 1992 International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (1992 IOPC Fund).
The regulations will reserve establishment of a domestic oil pollution compensation fund.
Also, the regulations will mainly reflect the liability provisions contained in the 1992 CLC and the 2001 Bunkers Convention . ( The former concerns liabilities of the owner for pollution stemming from the carriage of persistent oil, while the latter concerns liabilities of the owner for damage due to bunker oil spills ).
Any vessel trading within PRC territorial waters (except those less than 1,000 gt carrying non-oil cargoes) will be obliged to maintain insurance or other financial security to comply with the requirements of the Chinese Maritime Code or the 1992 CLC and 2001 Bunkers Convention .
To maintain awareness, the PRC's Maritime Safety Agency (MSA) will prepair and publish a list of competent insurance providers.
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