Hot off the press! The Detailed Rules for the Implementation of Subsidies on the Retirement and Renewal of Aged Commercial Vessels was issued

On August 2, the Ministry of Transport and the National Development and Reform Commission issued the Detailed Rules for the Implementation of Subsidies on the Retirement and Renewal of Aged Commercial Vessels in the Transport Sector (hereinafter referred to as the Detailed Rules). Differentiated subsidy standards will be adopted for the retirement and renewal of aged commercial vessels based on factors such as the type of retired vessels, the age of the vessels, and the power type of the newly constructed vessels. The implementation period of the Detailed Rules is from the date of its issuance to December 31, 2028. Subsidies will be provided in accordance with the standards set forth in the document for the retirement and renewal of aged commercial vessels of Chinese origin within the territory of the People’s Republic of China. The Detailed Rules clarifies that the scope of dismantlement subsides for vessels is aged commercial vessels engaged in domestic coastal and inland waterway transport. For coastal cargo vessels, the age should be between 20 years (excluding) and 30 years (inclusive) while for passenger vessels, the age should be between 15 years (excluding) and 25 years (inclusive). For inland river cargo vessels, the age should be between 15 years (excluding) and 30 years (inclusive) while for passenger vessels, the age should be between 10 years (excluding) and 25 years (inclusive). The age of a dismantled vessel is defined as the period from its completion date to the date of issuance of the Vessel Ownership Deregistration Certificate (calculated in actual years, without rounding). The vessel should be a motorized one with valid certificates for vessel inspection, vessel ownership registration, and operational certification or equivalent documentation. The dismantlement and the vessel ownership deregistration procedures should be completed during the implementation period of the Detailed Rules. Vessel owners may apply for subsidy funds if the vessel dismantlement meets the above conditions. The Detailed Rules also clarifies the scope and standards for subsidies for newly constructed fuel-propelled (including biodiesel-propelled) vessels and new and clean energy vessels.

The Detailed Rules clarifies the application procedure for subsidies. Vessel owners applying for subsidies on the retirement of aged commercial vessels should submit applications to the municipal-level transportation authorities in the port of registry of the dismantled vessel during the implementation period of the document and complete the Application Form for Subsidies on the Retirement and Renewal of Aged Commercial Vessels. Vessel owners applying for subsidies on the construction of new vessels should submit applications to the municipal-level transportation authorities in the port of registry of the new vessel during the implementation period of the document and complete the Application Form for Subsidies on the Retirement and Renewal of Aged Commercial Vessels. For coastal vessel operators whose registration is in cities such as Beijing, where it does not coincide with the vessel’s port of registry, applications should be submitted to the transport authorities in the coastal vessel operator’s place of registration. The Detailed Rules clarifies the requirements for supervision and management. The Ministry of Transport and the National Development and Reform Commission, in accordance with their respective responsibilities, will guide and supervise local authorities in carrying out the work for subsidies on the retirement and renewal of aged commercial vessels and implement oversight and management. The municipal-level transport and development and reform authorities in the port of registry, as well as the provincial-level transport and development and reform authorities, should strictly review applications for subsidies on the retirement and renewal of aged commercial vessels in accordance with the scope and standards set forth in the document. Maritime authorities should be responsible for verifying the vessel ownership registration information of the dismantled and newly built vessels while vessel inspection agencies should be responsible for verifying the vessel inspection information. Provincial transport authorities, in coordination with the development and reform departments at the same level, shall closely monitor the allocation and implementation outcomes of the subsidy funds. Ad hoc inspections with a sampling rate of no less than 5% should be carried out regularly. Supervision and management of subsidy projects involving funds of 2 million yuan or more should be strengthened.