The Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) has issued a series of regulations for managing cargo transport agents across the Taiwan Straits. The new procedures become effective on August 21, 1996.

The document, comprising 14 articles, is aimed at promoting the development of trade, economy and shipping industries across the Taiwan Straits and keeping normal order of cargo transport agents, in accordance with the principles of one-China, two-way direct shipping service and mutual benefits.

It stipulates that direct cargo transport on the sea between harbors on the Chinese mainland and Taiwan is deemed to be domestic transportation with special management.

MOFTEC is an institution in charge of the business and management according to the country's relevant laws and the situation of supply and demand of the cargo transport market across the Taiwan Straits.

The document says that those who are engaged as cargo transport agents should be approved by MOFTEC.

Those who want to apply to be cargo transport agents should accord with two conditions.

The enterprises should be international cargo transport agents established with the ratification of the Ministry, with their capital totally coming from enterprises on the Chinese mainland.

Ratified by the ministry, they should be joint ventures and cooperative enterprises invested by both Chinese mainland and Taiwan investors and engaged as agents in international cargo transport.
It also says that the ministry will regularly announce lists of names of enterprises handling such business. Those who want to be involved in the business of direct cargo transport on the sea should choose their agents from among enterprises affirmed by the ministry.

Those who violate the relevant laws and decrees, as well as the newly issued regulations, will be punished by the ministry, the document says.

The regulations on the management of direct passenger and cargo shipping business across the Taiwan Straits, made known to the public by the Ministry of Communications yesterday, and the regulations on managing cargo transport agents are described as a major event in economic exchanges and trade between the two sides of the Taiwan Straits. They are also seen as an important measure for promoting direct exchange of mail services, trade, air and shipping services.