Ship sales series of used ship imports

According to the Measures for the Implementation of Automatic Licensing for Import of Mechanical and Electrical Products, the Measures for the Administration of Import of Mechanical and Electrical Products of the Ministry of Commerce, the Provisions of the Ministry of Foreign Trade and Economic Cooperation (now the Ministry of Commerce) on Matters related to the Import of Ships and the Import Catalogue of Key Used Mechanical and Electrical Products, ships applying for import shall also obtain the Import License for Mechanical and Electrical Products issued by the Ministry of Commerce. In particular, the applicant shall submit the application for import report, import application form for mechanical and electrical products, transport capacity approval, technical assessment of old ships and other materials to the competent foreign economic and trade authorities in the region to be transferred to the Ministry of Commerce for review.

5. Customs formalities

After obtaining the above permits and paying the purchase price according to the second-hand boat sale contract, customs formalities should also be completed. To this end, the documents to be submitted to the Customs include second-hand ship sales contract, invoice, used ship import technical assessment, import license of mechanical and electrical products, ship specifications, etc. It is subject to a value-added tax of 17% and a tariff ranging from 5% to 14% depending on the type of ship and the nationality of the ship. The specific tariff rate depends on whether MFN rates are available and the type of vessel. For oil product carriers, for example, the MFN rate is 9% for DWT or less than 100,000 tons. Based on this calculation, the total tax is 27.53% (9%+ (1+9%)*17%).

6. Ship registration

According to China's Regulations on Ship Registration, the owner of a ship should register the ownership of the ship at the port of registration (maritime Safety Administration). At the time of registration, documents sufficient to prove its legal identity shall be submitted to the ship registration authority of the port of registration for examination, and the body and copy of the relevant technical data of the ship and the documents certifying the acquisition of the ownership of the ship, such as the invoice for the purchase of the ship or the contract of sale and handover of the ship, the certificate of tax payment, and the certificate of cancellation of the registration of the ownership of the ship issued by the ship registration authority of the port of registration of the ship shall be provided.

7. Apply for Ship Business Transport Certificate

According to the relevant provisions of the "Regulations on the Administration of Domestic Waterway Transport" and the "Regulations on the Administration of Domestic Waterway Transport", waterway transport operators put new vessels into operation, The ship operation certificate shall be obtained from the competent department of transport under The State Council or the department responsible for the administration of water transport under the local people's government at or above the level of a districted city or its authorized unit (maritime Safety Administration) on the basis of the water transport business license, ship registration certificate and inspection certificate. General application for "ship business transport certificate" requires ship ownership, nationality, minimum manning certificate copy, company business license, water transport license copy, ship inspection certificate, DOC compliance certificate copy, safety management certificate and other materials.

The above are the main administrative approval procedures, and the technical and commercial arrangements, such as classification societies and insurance, have been covered in the "Ship sales Series" article, and will not be repeated.

Special provisions for foreign-funded enterprises

Whether it is a wholly owned company registered by a foreign entity in China, a foreign-funded company operating jointly with a Chinese enterprise, or a registered subsidiary of a foreign-funded company, although legally speaking, it is a "domestic enterprise", but according to the provisions of Article 3, paragraph 2, of the Interim Provisions on Domestic Investment of Foreign-Funded Enterprises, "The domestic investment of foreign-invested enterprises shall be subject to the provisions of the Interim Provisions on the Direction of Foreign Investment and the Catalogue for the Guidance of Foreign Investment Industries." In the 2017 "Foreign Investment Industry Guidance Catalogue", domestic waterway transport belongs to the restricted category, so the actual controller of the enterprise engaged in domestic waterway transport needs to be domestic capital, that is, more than 50% of the company's shares should be controlled by domestic capital. In addition, although foreign-invested enterprises established in the free trade zone are not subject to the above restrictions on domestic ownership, they can only operate international maritime business, but cannot operate domestic waterway transport business.