Shipping 2026

CHINA Law and Practice Contributed by: John Wang, Xu Jun, Song Jia and Zhao Yuxuan, Wang Jing & Co

to hardship. The test for hardship is an unforeseeable, unavoidable and insurmountable test. 9.2 Enforcement of the IMO 2020 Rule Limiting the Sulphur Content of Fuel Oil As China is a contracting state to Annex VI of the MARPOL Convention, the 2020 sulphur content limit applies to China. The MSA has issued the Implemen - tation Scheme of Global Marine Fuel Oil Sulphur Limit by 2020 (the “Implementation Scheme”), which pro - vides as follows. • From 1 January 2020, vessels engaged in inter - national voyages, when entering Chinese waters, shall use fuel oil with a sulphur content not exceed - ing 0.50% m/m (mass by mass). • From 1 March 2020, vessels engaged in interna - tional voyages, when entering Chinese waters, shall not carry fuel oil with a sulphur content exceeding 0.50% m/m. • From 1 January 2020, vessels engaged in interna - tional voyages, when operating in the inland river emission control area, shall not use fuel oil with a sulphur content exceeding 0.1% m/m. • From 1 January 2020, vessels engaged in inter - national voyages, when operating in the coastal emission control area of Hainan waters, shall not use any fuel oil with a sulphur content exceeding 0.1% m/m. • Vessels of international voyages with alternative measures that comply with Article 3 of MARPOL Annex VI could be exempted from the foregoing requirements. • From 1 January 2020, the wash-water of open- loop exhaust gas cleaning systems shall not be discharged into the waters of domestic emission control areas (DECAs). • From 1 January 2020, where Chinese vessels on international voyages use or carry non-compliant fuel oil due to the non-availability of compliant fuel oil, and where their next ports of call are foreign ports, the vessels shall report to the maritime authorities of the registered ports immediately and notify the competent authorities of the next ports of call with a fuel oil non-availability report (FONAR). • From 1 January 2020, where vessels with Chinese nationality on international voyages use or carry non-compliant fuel due to the non-availability

of compliant fuel, and where their next ports of call are Chinese ports, the vessels shall submit a FONAR to the maritime authorities of those ports. • From 1 January 2020, if foreign vessels on inter - national voyages use or carry non-compliant fuel due to the non-availability of compliant fuel, and where their next ports of call are Chinese ports, the vessels shall notify the maritime authorities of the Chinese ports with a FONAR before entering Chinese waters. • From 1 March 2020, vessels on international voy - ages carrying non-compliant fuel in Chinese waters shall discharge non-compliant fuel oil or keep non- compliant fuel oil on board with a commitment let - ter for not using it in Chinese waters. Such vessels shall obtain the consent of the maritime authorities of the ports, according to MEPC.1/Circ.881. • When discharging non-compliant fuel oil from ves - sels, reports shall be made to the local maritime authority, whilst safety and pollution prevention measures shall be implemented. • Should there be any violation of the Implementa - tion Scheme, maritime authorities shall act accord - ing to relevant laws, regulations and the Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution, which provides, in the case of consumption of non-compliant fuel oil, for the imposition of a fine ranging from CNY10,000 to CNY100,000. As Annex VI of the MARPOL Convention was revised in 2024, the MSA has issued the Announcement on the Implementation of the 2024 Amendments to the Annex VI of the MARPOL Convention, which provides as follows. • Any entity supplying low-flashpoint or gaseous fuels to internationally trading vessels shall deliver to the receiving vessel a Bunker Delivery Note that fully complies with Regulation 18.5.2 of MARPOL Annex VI (2024 revised). Both the receiving vessel and the fuel supplier shall retain the Bunker Deliv - ery Note for a minimum of three years. • Where a Chinese internationally trading vessel is fitted with a replacement diesel engine that is not strictly identical and cannot meet the Tier III standard, the engine shall instead satisfy the Tier II standard pursuant to Regulation 13.2.2 of

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