Taiwan Imposes Stricter Ship Entry Rules For China-Linked Vessels Amid Rising Security Concerns

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This report outlines Taiwan’s newly implemented procedural restrictions on ship arrivals and departures associated with China, effective March 31. The measures, introduced amid recent reports of undersea cable damage, require vessel operators to submit detailed applications at least one month in advance for approval, though clearance is not guaranteed.

Key points include

  • Stricter Approval for “Substandard” & Specific Vessels:
    Vessels such as semi-submersible ships, oil tankers, LPG tankers, and heavy transport vessels with Mainland China, Hong Kong, or Macau affiliations will now need prior consultation with authorities when applying for direct navigation permits or business registration.

  • Extended Processing Times:
    Authorities caution that the approval process will be lengthy, advising operators to apply at least 30 days in advance to avoid port entry disruptions.

  • MTNet System Upgrade:
    Taiwan’s MTNet shipping portal will be upgraded with a new field requiring detailed ownership and carrier company information. Stakeholders are encouraged to prepare data in advance to facilitate a smoother approval process.

  • Expanded Scope of Scrutiny:
    The regulation applies to foreign-flagged ships owned or operated by entities registered in China, Hong Kong, or Macau, regardless of the vessel’s flag state.

    • Authorities will examine four key entities in each vessel’s Q88 form:

      1. Registered Owner

      2. Technical Operator

      3. Commercial Operator

      4. Disponent Owner

    • The head owner listed on the vessel’s official registry will also undergo verification.

  • Market Impact:
    In the week ending March 28, Taiwan’s CPC Corp. sought a VLCC to transport 270,000 mt of crude from the Persian Gulf (laycan: April 14). The charterer explicitly excluded vessels with ownership or flag ties to China or Hong Kong.

These procedural changes reflect Taiwan’s heightened scrutiny of maritime activities amid regional tensions and underline the potential impact on shipping schedules and logistics.

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Source: S&P GLOBAL