Date: 20 March 2023

Oasis Circular No.: 2303

Subject: New Regulations on Prevention and Control of Ship Pollution in Shanghai and Ports on Yangtze River came into force on 1 March 2023

In order to further strengthen the prevention and control of ship pollution, both the “Regulations of Shanghai Municipality on the Prevention and Control of Ship Pollution” (referred to as “Shanghai Regulation”) issued by Shanghai MSA and the “Regulations of Jiangsu Province on the Prevention and Control of Ship Pollution in the Yangtze River”(referred to as “Jiangsu Regulation”) issued by Jiangsu MSA officially came into force on 1 March 2023.

Shanghai Regulation mainly covers port areas and terminals in Shanghai, and Jiangsu Regulation mainly covers ports on Yangtze River, including Taicang, Changshu, Nantong, Zhangjiagang, Jingjiang, Jiangyin, Taizhou, Changzhou, Yangzhou, Zhenjiang, Nanjing, etc.

Since the two regulations came into force, there have been a number of cases in this region where ships were fined for violation of the requirements therein. In order to help understand and comply with the two regulations, we hereby summarize the key points related to requirements on ocean going ships in the two Regulations for your reference:

Common Requirements of the two Regulations

1. Single hull tankers carrying bulk liquid dangerous cargo (including single-side single-bottom, double-side single-bottom, single-side double-bottom) are prohibited from berthing or operating in the main stream of the Yangtze River, Huangpu River or other inland navigable waters in Shanghai Municipality and the Yangtze River waters in Jiangsu Province

Related Penalty:

Shanghai Regulation: a fine between CNY3,000 and CNY30,000

Jiangsu Regulation: not mentioned

2. If ships use domestic sewage treatment devices, oily-water separators, ballast water treatment system or other anti-pollution devices, maintenance and record shall be well kept; pollutants from ships shall be collected and classified.

3. Ships are prohibited from directly discharging into any water domestic sewage or oily sewage that has not been treated or still fails to meet the discharge standards after treatment.

Related Penalty:

Shanghai Regulation: a fine between CNY20,000 and CNY50,000; if the circumstances are serious, a fine between CNY50,000 and CNY200,000

Jiangsu Regulation: a fine between CNY20,000 and CNY30,000

4. The domestic sewage discharge pipelines and valves directly leading to the outboard of inland ships shall be sealed or blinded.

Related Penalty:

Shanghai & Jiangsu Regulations: a fine between CNY1,000 and CNY10,000

5. When ocean going ships discharge ballast water, they shall ensure that the discharged ballast water meets the requirements, and shall report to the competent department for prevention and control of pollution from ships before discharging.

6. Garbage and sewage from inland ships shall be delivered at least once every five days or every voyage, except for those due to reasonable reasons such as suspension of navigation for maintenance, inspection, etc.

7. Ships shall hand over water pollutants in time. If an inland ship does not need to deliver pollutants/could not present the receipt documents, she shall voluntarily explain the situation to the port operator.

8. When a ship with shore power receiving facilities berths at a berth equipped with shore power, she shall use shore power, unless otherwise stipulated by the State.

9. Ships carrying cargo emitting toxic and harmful gases or dust substances shall take sealing or other protective measures in accordance with regulations.

For the loading, unloading or lightering operations of the above mentioned cargo, ships shall take measures to recover toxic or harmful gases and suppress dust spreading during the operation.

Related Penalty:

Shanghai Regulation: If a ship fails to take measures to recover toxic or harmful gases, she will be ordered to make corrections, and a fine between CNY10,000and CNY100,000 will be imposed. If the party refuses to make corrections, it shall be ordered to stop work or suspend business for rectification.

Jiangsu Regulation: violators will be ordered to make corrections, and a fine of not less than CNY10,000 but not more than CNY30,000 will be imposed

10. Ships shall use fuel that meets the national standards or requirements. The exhaust gas emission shall comply with the national requirements for the control of air pollutant emission and shall not emit visible black smoke.

Related Penalty:

Shanghai Regulations on the Prevention and Control of Air Pollution: a fine between RMB1000 and RMB10000; if the circumstances are serious, a fine between RMB10,000 but and RMB50,000

Jiangsu Regulation: If the circumstances are serious, a fine between RMB1,000 and RMB10,000

11. If a ship uses the waste gas cleaning system/emission gas post-treatment, the washing water and residues generated shall be disposed of in accordance with regulations, and records shall be kept accordingly. Illegal discharge is not allowed.

Related Penalty:

Shanghai Regulation: not mentioned

Jiangsu Regulation: a fine between RMB10,000 and RMB50,000

12. Ships shall keep the supply and receipt documents for three years, and keep the fuel oil samples for one year.

Related Penalty:

Shanghai Regulation: not mentioned

Jiangsu Regulation: a fine between RMB2,000 and RMB10,000

13. Ship owners, operators or managers shall formulate emergency plans for prevention and control of environmental pollution from ships and their related operations, and regularly organize drills. In case of a pollution accident on a ship, the emergency plan shall be activated immediately, measures shall be taken to control or reduce the pollution hazards to the environment, and the accident shall be reported timely to the competent department for prevention and control of pollution from ships.

14. For acts in violation of the provisions of the Regulations, if the laws and other regulations already have provisions for handling such acts, the provisions thereof shall prevail

Special Requirements in Shanghai Regulation

1. During navigation, berthing and operation, the noise emitted by a ship shall comply with regulations of the State.

Ships are prohibited from using horns and whistles in the waters between Yangpu Bridge and Xupu Bridge of the Huangpu River as well as in the inland navigable waters within the outer Ring Road, except in cases that endanger safe navigation or the collision avoidance regulations.

2. Ships shall be equipped with tanks (holds) or containers with sufficient quantity and capacity for the collection and storage of marine water pollutants to collect, store and treat the generated water pollutants in a timely manner. I

If a ship needs to set up classified collection containers for such as domestic garbage, the setting should also meet the relevant standards of Shanghai's environmental sanitation management, adapt to the amount of garbage generated, and maintain normal use.

Related Penalty: a fine between CNY300 and CNY3000

3. Ships shall use the prescribed supervision and management information system, accurately measure and truthfully record the receiving of water pollutants from ships in accordance with the requirements for filling the joint declaration.

Related Penalty: a fine between CNY2,000 and CNY20,000

4. Ships are prohibited from using incinerators in administrative waters.

Related Penalty: a fine between CNY3,000 and CNY30,000

5. Ships engaged in loading, unloading and lightering operations of ship’s fuel acceptance as well as liquid cargo with pollution hazard in bulk shall confirm the relevant anti-pollution measures before the operation, and strictly implement the anti-pollution measures during the operation.

6. When Shanghai issues an early warning of heavy air pollution, ships shall, according to different levels of pollution early warning, take emergency measures such as stopping the operations that are prone to generate dust.

7. The use of oil dispersants for emergency treatment during pollution accidents shall meet the standards prescribed by the State, and a report shall be made to the competent department for prevention and control of pollution from ships before use.

It is prohibited to use oil dispersants in Shanghai’s inland navigable waters and in special protected areas such as marine nature reserves.

Related Penalty: a fine between CNY15,000 and CNY50,000

Special Requirements in Jiangsu Regulation

1. Ships transporting, loading and unloading solid waste shall take corresponding measures to prevent and control pollution. Solid waste shall not be dumped, buried, stacked, discarded or disposed of into water, beaches orcostal bank slopes.

2. Oil-containing pollutants and domestic sewage from ships shall be collected and stored separately in special sewage collection tanks approved by the ship inspection agency.

The ship's tank cleaning water or cargo residue in the liquid cargo tank shall be collected and stored, through fixed pipelines, in the special sewage collection tank or designated cargo tank approved by the ship inspection agency.

Related Penalty: a fine between CNY10,000 and CNY30,000

3. Inland vessels shalldeliver pollutants before loading and unloading operations. If an inland ship does not need to deliver pollutants, she shall voluntarily present the receipt documents or explain the situation to the terminals or loading and unloading stations.

If a ship finds a terminal’s or loading and unloading station’s receiving capacity of pollutants is insufficient or it refuses to receive them, she shall report the relevant information to the local transportation department or maritime administrative authority.

4. If a ship is berthed for more than two hours and is capable to use shore power, she shall use shore power, except in any of the following cases:

(1) Carrying dangerous liquid cargo in bulk;

(2) Using electrical energy, liquefied natural gas or other new and clean energy as power, or taking other equivalent measures such as shutting down auxiliary engines;

(3) Temporary failure of shore power facilities or ship power receiving facilities, or failure to use shore power in case of emergency such as bad weather or accidents.

Encourage ships berthed for less than two hours to use shore power.

5. Ships carrying goods that are prone to emitting toxic or harmful gases may not open cargo holds for ventilation instead of carrying out tank cleaning.

Related Penalty: a fine between CNY10,000 and CNY30,000

6. If a ship adopts the measure of tail gas post-treatment, the washing water and residue generated shall be collected and sent to the shore for reception and disposal, and records shall be well kept, and shall not be discharged into the water.

Related Penalty: a fine between RMB10,000 and RMB50,000

7. An inland ship carrying dangerous liquid cargo in bulk shall, after discharging the cargo, clean the cargo space at a capable tank washing station, unless the cargo intended to be loaded on the ship are consistent or compatible with thec argo discharged. The ship and the tank washing station shall clarify their respective responsibilities for safety and pollution prevention and control.

Related Penalty: a fine between RMB10,000 and RMB50,000

If the cargo intended to be loaded on the ship are compatible with the cargo discharged, the consent in writing of the owners of the cargo to be loaded on the ship shall be obtained for the vessel to be free of washing. The owner of the cargo shall be the same as the owner specified in the contract of carriage of the cargo to be loaded.

If the discharge port does not have the capacity for tank washing, the ship may obtain consent in writing for tank washing at the nearest tank washing station or the tank washing station at the next port, and shall report to the local maritime administrative authority of the discharge port before depart from the port.

8. If an inland ship carrying liquid dangerous cargo in bulk needs tank cleaning before maintenance or dismantling, she shall carry out tank washing at a capable tank washing station.

9. Pollutants generated during ship’s tank washing, repair, dismantling, loading and unloading, salvage and other related operations shall be removed in time and shall not be discharged into the water.

If the pollutants in the fuel oil tank or cargo tank of a ship need to be delivered and stored by means of transfer by barge, the management requirements for the transfer operation of polluting and hazardous cargo shall be observed.

10. When replacing, inspecting or repairing propeller, stern shaft or other parts on water by lifting the stern of the ship, etc., pollution prevention and control measures shall be taken to collect and dispose of the pollutants generated by the operation in accordance with laws.

Related Penalty: Violators will be ordered to stop the illegal action, and a fine of not less than RMB10,000 but not more than RMB100,000 shall be imposed; if water pollution is caused, violators will be ordered to take control measures within a time limit to eliminate the pollution, and a fine of not less than RMB20,000 but not more than RMB200,000 shall be imposed.

We hope the above is of assistance. If there is any query, please feel free to contact us at oasis@oasispandi.com.

Best regards,

Oasis P&I Services Company Limited