Circular Ref. No.: PNI[2023]03
Date: 15 March 2023

Regulations of Shanghai Municipality on the Prevention and Controlof Ship Pollution and Regulations of Jiangsu Province on thePrevention and Control of Ship Pollution in the Yangtze River
Came into Effect on 1st March, 2023

Dear Sir/Madam,
In order to strengthen the prevention and control of ship pollution, protect theecological environment, and promote the construction of ecological civilization, inaccordance with relevant laws and administrative regulations such as the Yangtze
River Protection Law of the People's Republic of China, the Law of the People'sRepublic of China on the Prevention and Control of Water Pollution, the Law of thePeople's Republic of China on the Protection of the Marine Environment, theRegulations on the Management of the Prevention and Control of Ship Pollution, theShanghai Municipal and Jiangsu provincial government issued local supporting
regulations on the prevention and control of ship pollution, i.e. Regulations ofShanghai Municipality on the Prevention and Control of Ship Pollution (adopted onDecember 21, 2022) and Regulations of Jiangsu Province on the Prevention andControl of Ship Pollution in the Yangtze River (adopted on November 25, 2022)(hereinafter referred to as the “Regulations”). Both Regulations have come into force
as of March 1, 2023.
General Introduction
The two Regulations respectively set the obligations for relevant subjects, including
ships, port operators, ship repair yards, and bunker suppliers, regarding prevention
and control of water and air pollution from ships, prevention and control of pollution
from ship operations and ship emergency response, as well as the legal liabilities forviolation of the Regulations. The regional cooperation mechanism of the Yangtze
River Delta has been clarified. Shanghai will strengthen communication andcoordination with relevant provinces in the Yangtze River Delta region, such as
Jiangsu Province, to negotiate and solve major issues of ship pollution prevention andcontrol, and to promote regional cooperation in ship pollution prevention and control.

Applicable Waters

The applicable waters of Shanghai Regulations shall be: the navigable waters ofShanghai and the port waters under state authorized management (collectivelyreferred to as the waters under the administration of Shanghai).

The applicable waters of Jiangsu Regulations shall be: the Yangtze RiverWaters in Jiangsu Province, which refers to Yangtze River main stream waters,including main stream bypaths, short-cut routes and its connecting harbor basin

waters.

Main Provisions Relating to Ships

For the convenience of the Clubs/Members, we summarize the main ship-related
provisions of the two Regulations and offer our comments as below. We find thembasically consistent with international conventions, domestic laws and regulations.
Ships’ sailing, berthing, and operating in waters under the administration of Shanghaior the Yangtze River in Jiangsu Province shall comply with relevant regulations. Inaddition, some provisions of regulations are specific to Chinese inland ships and are
not applicable to ships on international voyages. Therefore, these provisions are notcited or explained in this Circular.

The Obligation of Ships

1.

Ships with shore power connection facilities shall use shore power.
Huatai Comments: This requirement is mentioned in both Regulations, requiring
terminals, loading/unloading station, waterborne service areas with shore power
supply ability, shall provide shore power to ships able to use shore power (exceptfor ships carrying bulk liquid dangerous cargo, ships using new and clean energy
such as electricity, LNG as power, or taking other equivalent measures such as
shutting down auxiliary engines).
In accordance with the Regulations, in the Yangtze River waters of Jiangsu
Province, ships using shore power can be given priority berthing, and the service
fee for shore power can be reduced or exempted. In waters under theadministration of Shanghai Municipality, if shore power does not cover all berths,
the port operator shall firstly arrange shore power berths for vessels with shorepower receiving facilities for their port operation in accordance with theregulations.

Regarding the specific conditions and requirements for the use of shore power, werecommend that ships confirm with the ship agent before arriving at the port.

2.

The bunker used by ships shall meet specified quality standards, and the bunker
delivery note shall be kept for 3 years. The bunker samples shall be kept for 1year.

Huatai comments: The requirement is consistent with paragraphs 6 and 8.1 ofRegulation 18, Annex VI, MARPOL Convention on the retaining period of bunker
delivery note and bunker sample, which shall be strictly complied with.

3.

Those engaged in loading, unloading and lightering bulk liquid cargo with thehazard of pollution shall confirm the relevant pollution prevention measures withthe joint operator before the operation, and the measures shall be strictly
implemented during the operation.

Huatai comments: Before loading, unloading and lightering operations for bulk
liquid cargo with the hazard of pollution, the pollution prevention measures shallbe confirmed with the joint operators (such as the other ships, terminals,
loading/unloading stations, etc.). And the measures shall be strictly implemented
during the operation. The ship-shore safety checklist signed by both parties, theship-to-ship lightering inspection checklist or the cargo transfer/bunkering
pollution prevention inspection checklist prepared by the ship managementcompany for its own fleet can serve as a proof of confirmation of pollution
prevention measures taken prior to operation.

4.

Those engaged in loading, unloading, and lightering of cargoes emitting toxic andharmful gases or dust substances shall take measures with the joint operators torecover toxic and harmful gases and suppress dust during the operation.

Huatai comments: Crude oil ships may emit volatile organic compounds duringcargo operation. Some toxic chemicals may emit toxic and harmful cargo vapors
during loading, unloading and lightering operations. For ships equipped withVapor Emission Control System (VECS) and terminals with cargo vapor recovery
capability, both parties should work together to conduct closed cargo operations
in order to reduce the harm to the environment and human bodies.

5.

Owners, Operators or Managers shall formulate an emergency plan for pollution
prevention and drills shall be organized. In case of a pollution accident, theemergency plan shall be launched immediately and such accident shall be timely
reported to the competent department in charge of ship pollution prevention andcontrol

Huatai comments: Ships shall regularly organize pollution prevention emergency
drills in accordance with the requirements from the international safety
management code and the ship safety management system to improve crews’
emergency response skills. In case of a pollution accident, the emergency plan
shall be activated immediately in accordance with the shipboard oil/marine
pollution emergency plan and the accident shall be reported timely to thecompetent department in charge of prevention and control of ship pollution.

6.

When international ships are discharging ballast water, treatment devices or otherequivalent measures shall be adopted to inactivate the ballast water, to ensure thatthe discharged ballast water meets the requirements. And report shall be made to
the competent department in charge of pollution prevention and control of ships
in accordance with regulations before discharging. International sailing vessels
are prohibited to discharge ballast water that fail to meet the requirements.

Huatai comments: Ships on international voyages should use ballast watertreatment devices to inactivate the discharged ballast water and report to thecompetent authority for the prevention and control of ship pollution. The reportforms can be obtained from the ship agent.

7.

If the Exhaust Gas Cleaning System is used, the washing water and residues
generated shall be disposed of in accordance with the Regulations, and therecords shall be kept. Illegal discharge is prohibited.

Huatai comments: According to the Implementation Scheme of the Global Marine
Fuel Oil Sulphur Limit by 2020 issued by the Maritime Safety Administration ofthe People's Republic of China, ships are prohibited to discharge washing water
generated by the Open Loop Exhaust Gas Cleaning System in the Domestic
Emission Control Areas for Vessels in China as of January 1, 2020.

8.

Ships shall strengthen the repair and maintenance of the main engine andauxiliary equipment, and use fuel that meets the national standards orrequirements. The exhaust emission shall comply with the national air pollutant
emission control requirements and shall not emit easily visible black smoke.

Huatai comments: This requirement is mentioned in the Regulations of Jiangsu
Province on the Prevention and Control of Ship Pollution in the Yangtze River.
Main engine and auxiliary equipment shall be maintained in strict accordancewith the manufacturer’s instructions and ship’s PMS to ensure they are in goodworking condition. No easily visible black smoke shall be emitted.

Prohibitions:

1.

Sewage and oily water that are untreated or fail to fulfill discharge standard evenafter treated are prohibited from discharging into water bodies. Ships areprohibited from discharging sewage and oily water into Huangpu River andSuzhou River, and are prohibited from discharging oily water into other inland
navigable waters.

Huatai comments: When sailing in Chinese waters, sewage and oily water shallbe discharged in accordance with the Discharge standard for water pollutantsfrom ships (GB3552-2018). Higher discharge requirements are set for water
areas such as Huangpu River and Suzhou River, where the discharge of sewage
and oily water from ships is prohibited regardless of whether they are treated ornot.

2.

Ships are prohibited from sounding whistles in the waters between Yangpu
Bridge and Xupu Bridge on the Huangpu River and the inland navigable waters
within the Shanghai outer ring road, except that navigation safety is endangered
and sound devices should be used in accordance with Regulations for preventing
collisions.

Huatai comments: Navigation safety is the first priority, and do not soundwhistles unless necessary.

3.

Ships without double-bottom and double-hull carrying bulk liquid dangerous
cargoes are prohibited from berthing or operating in the main stream of theYangtze River in Shanghai, Huangpu River, other inland navigable waters and theYangtze River in Jiangsu Province.

Huatai comments: Single-hull tankers carrying bulk liquid dangerous cargo havebeen phased out both internationally and domestically. Ships carrying bulk liquid
dangerous cargo berthing and operating in the waters under the administrationof Shanghai and the Yangtze River in Jiangsu Province must be constructed as
double-bottom and double-hull.

4.

Vessels are prohibited to use incinerators in navigable waters in this city(Shanghai) and port waters under state authorized management.

Huatai comments: As a common practice on board, incineration will not beconducted at ports. This provision is a local rule. Ships should pay attention tostop operating incinerators in the navigable waters of Shanghai and port waters
under state authorized management.

5.

Ship carrying goods that tends to emit toxic and harmful gases cannot takeventilation as a substitute method to cargo hold washing.

Huatai comments: This article is applicable to the Yangtze River of Jiangsu
Province. The purpose of this provision is to prevent air pollution and damage tohuman health caused by cargo vapor. We suggest that the cargo residues in thecargo hold removed by ventilation method in accordance with the relevant
provisions of Annex II, MARPOL Convention after sailing out of Yangtze Riverand the waters under the administration of Shanghai.

Should you have any inquiries, please feel free to contact Huatai Marine Headquarter(pni.bj@huatai-serv.com)or Huatai Shanghai office (pni.sh@huatai-serv.com ).

Best regards,CUI Jiyu
Head of Marine Team