No.5

The Port Law of the People’s Republic of China, adopted at the 3rd Meeting of the Standing Committee of the 10th National People’s
Congress of the PRC on June 28, 2003, is hereby promulgated for implementation as of January 1, 2004.
Hu Jintao, President of the People’s Republic of China

June 28, 2003

Port Law of the People’s Republic of China

Adopted at the 3rd Meeting of the Standing Committee of the 10th National People’s Congress of the PRC on June 28, 2003

Contents
Chapter I General Provisions

Chapter II Port Planning and Construction

Chapter III Port Operations

Chapter IV Port Security and Supervisory Management

Chapter V Legal Responsibilities

Chapter VI Supplementary Provisions
Chapter I General Provisions

Article 1

This Law has been formulated for the purposes of strengthening port administration, maintaining port security and operation orders,
protecting the legitimate rights and interests of the parties concerned and promoting port construction and development.

Article 2

This Law is applicable to the undertakings of port planning, construction, maintenance, operation, management and the relevant activities.

Article 3

Ports herein refer to the areas of water and land within certain range with corresponding dock facilities of functions for entry
and exit of ships, anchorage, moorage, off and on of passengers, handling of commodities, lighterage, as well as storage.

Ports may consist of one or more port areas.

Article 4

The State Council and the relevant local people’s government of and above county level shall in the plan on national economy and
social development embody the requirements for port development and planning and protect and make rational use of the port resources
by force of law.

Article 5

The state encourages the economic organizations and individuals at home and abroad to make investment on construction and operation
of ports and protect the legitimate rights and interests of investors by force of law.

Article 6

The competent traffic authority of the State Council is in charge of the national administration of port works.

The administration of ports by local people’s government within its administrative division shall be determined according to the provisions
on the port administrative system of the State Council.

For the ports under the administration by the local people’s government of the city and county level as per the port administrative
system determined herein, the local people’s government concerned shall designate a department for actual implementation of the administrative
management of the ports concerned; and for the ports under the administration by the people’s government of the province, autonomous
region and municipality directly under the Central Government, the people’s government of the province, autonomous region and municipality
directly under the Central Government shall designate a department for actual implementation of the administrative management of
the ports concerned.

The departments determined herein for actual implementation of the administrative management of the ports are hereinafter referred
to as the administrative management of the ports.

Chapter II Port Planning and Construction

Article 7

Ports planning should be prepared and compiled according to the requirements for national economy and social development and the
demands for defense construction, which shall in the principle of rational utilization of the coastal resources conform to the planning
of urban and township system and dovetail and be in harmony with the overall land use planning, overall urban planning, river reach
planning, flood prevention planning, functional division of seas, development planning of waterway transportation, development planning
of other means, as well as other relevant planning specified by laws and administrative laws and regulations.

The preparation and compilation of ports planning shall witness expert demonstration and evaluation of environmental influences by
force of law.

Article 8

The ports planning shall consist of port layout planning and overall port planning.

The port layout planning refers to the layout and distribution planning of ports, including national port layout planning and port
layout planning of the province, autonomous region and municipality directly under the Central Government.

The overall port planning refers to the specific planning of a port in certain period, including the water and land scopes of the
port, division of the port area, throughput and categories of potential ships, nature and functions of the port, utilization of the
water and land areas, port facilities, use of the coastal lines built, configuration of construction land, and sequences for phased
construction, etc.

The overall port planning shall conform to the port layout planning.

Article 9

The national port layout planning should be prepared by the competent traffic authority of the State Council upon solicitation of
the opinions of the relevant departments of the State Council and the relevant military organs, which should be ratified by the State
Council before promulgation and implementation.

The port layout planning of the province, autonomous region and municipality directly under the Central Government shall be prepared
and compiled under the organization of the people’s government of the province, autonomous region and municipality directly under
the Central Government, which should be submitted for solicitation of opinions form the competent traffic authority of the State
Council according to the national port payout planning. In case no opinions have been aired for modification by the competent traffic
authority of the State Council within thirty days upon its receipt of the solicitation of opinions, such port layout planning may
be promulgated for implementation by the people’s government of the province, autonomous region and municipality directly under the
Central Government; in case the competent traffic authority of the State Council is of the opinion that the port layout planning
is not in compliance with the national port layout planning, the opinions on modifications should be provided for within thirty days
upon receipt of the solicitation of opinions; and in case the people’s government of the province, autonomous region and municipality
directly under the Central Government is in disputer with the modification opinions, a petitions may be submitted for decision by
the State Council.

Article 10

The overall port planning should be prepared and compiled by the port administrative department upon solicitation of opinions from
the relevant departments and the relevant military organs.

Article 11

The overall planning of the principal ports of important geographical positions, large throughput and wide influence on economic
development should be promulgated for implementation with joint approval by the people’s government of the province, autonomous region
and municipality directly under the Central Government upon solicitation by the competent traffic authority of the State Council
of opinions from the relevant department of the State Council and the relevant military organs. The directory of the principal ports
should be determined and promulgated upon solicitation by the competent traffic authority of the State Council of opinions from the
relevant department of the State Council.

The people’s government of the province, autonomous region and municipality directly under the Central Government shall determine
the important ports within the administrative division under its jurisdiction upon solicitation of opinions from the competent authority
of the State Council. Before promulgation and implementation, the overall planning of important ports should be ratified by the people’s
government of the province, autonomous region and municipality directly under the Central Government upon solicitation of opinions
from the competent traffic authority of the State Council.

The overall planning of the ports other than those specified by the above-mentioned two paragraphs should be approved by the local
people’s government of city and county level before promulgation and implementation, which should also be submitted for filing by
the people’s government of the province, autonomous region and municipality directly under the Central Government.

The overall port planning prepared and compiled by the port administrative departments of the people’s government of city and county
level within the scope specified by the first and second paragraphs of this article should be reviewed and ratified by the people’s
government of the proper level before submission for ratification and approval.

Article 12

The modification of the port planning should be handled with in compliance with the statutory procedures for port planning.

Article 13

The construction of port facilities in the overall planned areas of ports and use of the deep-water lines of ports should be approved
by the competent traffic authority of the State Council jointly with the comprehensive and macro-control and adjustment department
of economy of the State Council, and the construction of port facilities and use of the deep-water lines of ports should be approved
by the port administrative departments, provided that the use of port coastal lines by the projects to be constructed with approval
by the State Council or the comprehensive and macro-control and adjustment department of economy of the State Council does not require
for separately handling of the procedures relating to approval for use of the port coastal lines.

The competent traffic authority of the State Council should formulate the standards for the deep coastal lines of ports.

Article 14

The port construction shall be in compliance with the port planning and no port facilities should be constructed in violation of
the port planning.

Article 15

The port construction projects requiring for approval by the relevant organ according to the state provisions, shall go through the
examination and approval procedures in compliance with the relevant state provisions, which shall conform to the relevant state standards
and technological norms.

The construction of the port engineering project shall go through the evaluation of environmental impacts by force of law.

The security facilities and environmental protection facilities for port construction projects must by designed, implemented and put
into use synchronously with the mainstay engineering.

Article 16

The use of land and water areas for port construction shall be handled with in compliance with the provisions of the laws and administrative
regulations concerning the land administration, administration for use of seas, watercourse administration, navigation administration,
and the protection administration of military facilities, as well as other relevant laws and administrative regulations.

Article 17

The places of the ports where dangerous cargos are processed and where sanitary and insecticide treatment are made shall meet the
requirements of the overall port planning and the relevant state security production, firefighting, inspection, quarantine and environmental
protection, and their distance from densely populated areas and passenger facilities of the ports shall conform to the provisions
of the relevant departments of the State Council. The construction may be started only upon handling of the relevant formalities
by force of law and approval by the port administrative department.

Article 18

Navigation mark facilities and other accessory facilities shall be constructed synchronously with the ports, thus ensuring scheduled
start of use.

The construction of the office facilities of the relevant administrative administration of the ports shall conform to the overall
port planning, the construction fees of which should not be distributed to the port operators.

Article 19

The construction projects of port facilities can only be put into use after qualified acceptance examination upon their completion
in compliance with the relevant state provisions.

The ownership of the port facilities shall be determined according to the provisions of the relevant law.

Article 20

The relevant people’s government above county level shall ensure necessary capital input, which should be used for construction and
maintenance of the infrastructures of the navigation path, wave-prevention slope and anchoring sites for public use of the ports.
The detailed measures thereof should be provided for by the State Council.

Article 21

The relevant people’s government above county level shall take measures for organizing and constructing complementary facilities
of the ports, such as navigation path, railway, highway, water supply and drainage, power supply and communication.

Chapter III Port Operations

Article 22

The undertakings of port operation shall be available for the port operating licenses obtained from the port administrative department
with written application with registration made at the administration for industry and commerce. by force of law.

The port administrative department shall abide by the principles of openness, fair and equality in implementing the port operation
licenses.

Port operations include the operations of docks and other port facilities, operations of passenger services of the ports, operations
of handling, lighterage and warehousing within the port area and the operations of tugboats of the ports.

Article 23

The obtaining of the port operation licensing shall be available with fixed operation sites, corresponding facilities, equipment,
professional technicians and management personnel relating to the operation businesses, together with other conditions specified
by laws and regulations.

Article 24

The port administrative department shall within thirty days upon receipt of the written application as specified by the first paragraph
of Article 22 herein make decision on whether or not granting the license by force of law. In case the license is granted, the certificate
for license of port operation will be issued, otherwise, reasons thereof should be notified to the applicant in writing.

Article 25

Operations of port trimming services shall be eligible for licenses obtained according to the provisions. The implementation of the
operation licenses for port trimming services shall abide by the principles of openness, fairness and equality, the detailed measures
for which should be provided for by the competent traffic authority of the State Council.

The operators of port trimming services shall fairly and accurately handle with the trimming services, being prohibited from concurrent
operations of the cargo handling services and warehousing services specified in the third paragraph of Article 22 herein.

Article 26

in undertakings of operations, the port operators shall abide by the relevant laws and regulations, the provisions of the port operation
rules of the competent traffic authority of the State Council and perform the contractual duties by force of law, thus providing
customers with fair and excellent services.

The operators undertaking the port passenger services shall adopt effective measures for the security passengers, provide passengers
with quick, convenient and flexible services, and maintain good climate for waiting of the scheduled travel.

The port operators shall adopt effective measures for prevention and treatment of the pollution and harms to the environment according
to the relevant laws and regulations on environmental protection.

Article 27

The port operators shall take priority in arranging the rescue materials, calamity relief materials and materials urgently required
by national defense construction.

Article 28

The port operators shall at the business sites publish the charging items and charging criteria of the operation services, which
should not be implemented without publication.

In case the operation charges of ports adopt the prices directed or determined by the government by force of law, the port operators
shall execute in compliance with the provisions.

Article 29

The state encourages and protects the fair competition in port operation activities.

The port operators shall not implement monopoly acts or unfair acts, or force others to provide port services by any means.

Article 30

According to the provisions of the Statistic Law of the PRC and the relevant administrative laws and regulations, the port administrative
department requires for the port operators to provide the statistic data, which should be provided truthfully by the port operators.

The port administrative department shall according to the relevant state provisions submit the statistic data submitted by the port
operators and keep confidential the commercial secrets of the port operators.

Article 31

The legitimate rights and interest of the port operators is protected by law and no unit or individual shall distribute charges to
or illegally collect charges from the port operators or illegally interfere with the operation autonomy of the port operators.

Chapter IV Port Security and Supervisory Management

Article 32

According to the provisions of the Security Production Law of the People’s Republic of China, other relevant laws and regulations
and the security operation rules on ports of the competent traffic authority of the State Council, the port operators shall strengthen
the administration of security production, establish and perfect rules and systems relating to the security production responsibility
system, perfect the security production conditions, adopt the effective measures for safeguard of the security production and ensure
the security production.

The port operators shall by force of law formulate the preplan on incident emergency of the dangerous cargos of the this port, the
urgent passenger scattering and rescue preplan in case of material production security incidents and preplan on prevention of natural
disasters, thus safeguarding the organization and implementation thereof.

Article 33

The port administrative department shall by force of law formulate the preplan on incident emergency of the dangerous cargos of the
this port potentially to the detriment of social public interests, the urgent passenger scattering and rescue preplan in case of
material production security incidents and preplan on prevention of natural disasters, and establish and perfect the urgent rescue
system in case of material production security incidents on the ports.

Article 34

Entry and exit of ships of the ports shall be reported to the marine administrative authority according to the laws and administrative
laws and regulations of water traffic, upon receipt of which the marine administrative authority shall give timely notice to the
port administrative department.

Port entry and exit of ships with dangerous cargos shall according to the provisions of the competent traffic authority of the State
Council be accompanied with report of the names, features, package and time of entry and exit of the port of the dangerous cargos
to the marine administrative authority, upon receipt of which the marine administrative authority shall within the time specified
by the competent traffic authority of the State Council determine whether or not consent is granted, together with notice to the
reporter and submission to the port administrative department, provided that fixed ships and ships of fixed navigation lines and
fixed cargo varieties may be reported regularly.

Article 35

In case of handling of dangerous cargos and their transfer among ships in the port, the names, features, package and time and place
for such operations of the dangerous cargos should according to the provisions of the competent traffic authority of the State Council
be reported to the marine administrative authority, upon receipt of which the marine administrative authority shall within the time
specified by the competent traffic authority of the State Council determine whether or not consent is granted, together with notice
to the reporter and submission to the port administrative department.

Article 36

The port administrative department implement supervisions and inspection on the security production of the ports and focus on patrol
inspection on the docks of concentrated passenger flow and big volume of cargos or of special use, and in case of any hidden risks
found during the inspection, the inspected should be ordered to eliminate such risk immediately or within time limits.

The department in charge of security production and the relevant departments shall according to the provision of laws and regulations
implement supervisions and inspection on the security production of the ports within their authority.

Article 37

Cultivation and plantation activities are prohibited in the ports.

No digging or explosion activities should be conducted in the ports that may harm the port security, which, if required for engineering
construction, should be adopted with the corresponding security and protection measures with approval from the port administrative
department, and if required for approval by the marine administrative authority according to the laws and administrative laws and
regulations of water traffic, submission should be made for such approval by the marine administrative authority.

No soil, sand or stones should be poured in the port water and poisonous and harmful substance exceeding specific standards should
not be discharged in violation of the relevant laws and regulations on environmental protection.

Article 38

In case of project construction of bridges, underwater tunnels and water power stations that may be of influence on the changes of
the port hydrological conditions, the department in charge of approval of such project shall solicit the opinions of the port administrative
department prior to examination and approval.

Article 39

According to the laws and administrative laws and regulations of water traffic￿￿ships needing navigation pilot for entry and exit
of the ports shall apply for pilot with the piloting agency, the detailed measures for piloting should be specified by the competent
traffic authority of the State Council.

Article 40

In case of congestion of the ports due to stay of passengers and accumulation of cargos, the port administrative department shall
timely adopt effective measures for alleviation of the port load and the local people’s government of city and county level may,
if necessary, directly adopt the measures for port alleviation.

Article 41

The port administrative department shall organize for formulation of the articles of association of the ports under its administration,
which should be published.

The articles of association of the ports shall include the description of the geological location of the ports, the navigation path
conditions, depth of the port pool, machinery facilities and handling capacity, as well as the specific measures for the ports to
implement the laws and regulations on port administration and the relevant provisions of the competent traffic authority of the State
Council.

Article 42

The port administrative department shall supervise and inspect the implementation of this Law.

When implementing supervision and inspection by force of law, the inspectors of the port administrative department shall be enpost_titled
to understand the relevant circumstances from the inspected units and the relevant persons and read and copy the relevant materials.

The inspectors shall keep confidential the commercial secrets accessed during inspection.

The inspectors shall present the enforcement certificates while implementing inspection and supervision.

Article 43

The inspectors shall record in writing the inspection time, place, content, problems found and treatment, which should be singed
by the inspectors and the responsible person of the inspected unit, and in case the responsible person of the inspected unit refuses
to sign on the records, the inspectors shall keep filing and report to the port administrative department.

Article 44

The inspected units and the relevant persons shall accept the inspection and supervision implemented by the port administrative department
by force of law, such as truthfully providing the relevant circumstances and materials, not refusing to the inspection, not concealing
and fraudulently reporting the relevant circumstances and materials.

Chapter V Legal Responsibilities

Article 45

In any of the following cases, the people’s government above county level or the port administrative department shall order for correction
in time limit and in case no correction has been made, the authority making such order may apply with the people’s court for dismantling
the facilities constructed in breach of law, and/or together with fins no more than RMB50,000.00:

(1)

Construction of ports, dock or other port facilities in violation of ports planning;

(2)

Construction of port facilities and use of port coastal lines without approval.

In case the examination and approval department of the construction project approve the projects constructed in violation of the port
planning, the direct responsible executive and other direct responsible person should be accorded with administrative punishment.

Article 46

In case of construction of operation sites for dangerous cargos in the port, special sites for sanitary and insecticide treatment
without approval by force of law, or the distance from the operation sites for dangerous cargos in the port and special sites for
sanitary and insecticide treatment to densely populated areas or passenger facilities of the ports is not in compliance with the
provision of the relevant department of the State Council, the port administrative department may order for stopping the construction
or the use concerned and for correction in time limit, and/or together with fines no more than RMB50,000.00.

Article 47

Use of docks, or port handling facilities, passenger facilities without qualified examination and approval, the port administrative
department may order for stopping use of such facilities concerned and for correction in time limit, and/or together with fines no
more than RMB50,000.00.

Article 48

In case of any of the following acts, the port administrative department may order for stopping the illegal operations and confiscation
of the illegal incomes. In case the illegal incomes exceed RMB100,000.000, fines of two to five times the illegal incomes may be
imposed concurrently; and in case the illegal incomes is no more than RMB100,000.000, fines no less than RMB50,000.00 but no more
than RMB100,000.00 may be imposed:

(1)

Undertaking of port operations without obtaining the port operation license by force of law;

(2)

Undertaking of port trimming services without license by force of law; and

(3)

The port trimming operators are concurrently involved in undertakings of cargo handling and warehousing services.

In case of act specified in the above-mentioned paragraph (3) with serious circumstances, the relevant competent authority may revoke
the license for port trimming services.

Article 49

In case the port operators does not take priority in arranging the works relating to rescue materials, calamity relief materials
and materials urgently required by national defense construction, the port administrative department shall prosecute for correction,
and in case of serious results, the port business license may be repealed.

Article 50

In case the port operators implement monopoly acts or unfair acts in business activities in violation of the relevant laws and administrative
laws and regulations, legal responsibilities should be undertaken in compliance with the provisions of the relevant laws and administrative
laws and regulations.

Article 51

The port operators in breach of the provision on security production of Article 32 of this Law, the port administrative department
or other department in charge of supervision and administration of security production by force of law may accord corresponding punishment;
in serious case, the port administrative department may revoke the port operation license and accord punishment with the principal
responsible persons; and in case of crimes constituted, penal punishment may be prosecuted by force of law.

Article 52

In case of entry and exit of ships of the port without reporting to the marine administrative authority in compliance with the provisions
of Article 34 of this Law, the marine administrative authority shall accord with the punishments according to the laws and administrative
laws and regulations of water traffic.

Article 53

In case of undertaking of handling and transferring among ships dangerous cargos in the port without reporting to the port administrative
department with consent by force of law, the port administrative department may order for stopping of the operations with fines no
lees than RMB5,000.00 but no more than RMB50,000.00.

Article 54

In case of cultivation and plantation activities in the port water areas, the marine administrative department shall order for correction
within time limit, and in case no correction has been made upon such order, the cultivation and plantation facilities should be dismantled
with the expenses thereof to be borne by the offender, and/or together with fine no more than RMB10,000.00.

Article 55

In case of digging and explosion activities, or pouring clay, sand, and stone in the port water areas that may harm the port security
without approval by force of law, the port administrative department shall order for stopping such acts and for elimination of any
hidden risk thereof within time limits; and in case no elimination has been achieved, such elimination shall be enforced with the
expenses thereof to be borne by the offender, and/or together with fine no less than RMB5,000.00 but no more than RMB50,000.00; in
case of punishment to be imposed by the marine administrative department in compliance with the provision of the laws and administrative
laws and regulations of water traffic, such provision should be observed, and in case of crimes constituted, penal punishment should
be prosecuted.

Article 56

In case of any of the following acts on the part of the competent traffic authority, the port administrative department or the marine
administrative department in violation of law, the direct responsible executive and other direct responsible person should be accorded
with administrative punishment, and in case of crimes constituted, penal responsibilities should be prosecuted:

(1)

Approval for construction of port facilities and use of port coastal lines in violation of law, approval for construction of operation
sites for dangerous cargos in the port, or special sites for sanitary and insecticide treatment in violation of law, or approval
for entry or exit of ships with dangerous cargoes of the ports in violation of law, or approval for handling and transfer among ships
dangerous cargos in the ports in violation of law;

(2)

Granting port operation license or port trimming service