Chapter I General Provisions

(Purpose of this Law) Article 1. The purpose of this Law is to promote public interests by securing order in marine transportation and encouraging sound development of the marine transportation business.

(Definition) Article 2. The "marine transportation business" within the meaning of this Law shall be the ship-operation business, ship's lease, forwarding agency, shipping brokerage, shipping company's agency, tallying, surveying and measuring business. 2 The "ship-operation business" within the meaning of this Law shall mean the business, other than the harbor transportation business (the business which, being attendant on the marine transportation, is to carry goods by lighter or tug for loading or discharging), to carry persons or goods by ship and is divided into liner service enterprise and tramp service enterprise. 3 The "liner service enterprise" within the meaning of this Law shall mean the ship-operation business to engage in such transportation with passenger-boats (vessels having passenger complement of not less than thirteen persons) on definite routes, schedules and tariffs as previously made public and "tramp service enterprise" shall mean all other kinds of ship-operation business. 4 The "ship's lease business" within the meaning of this Law shall mean the business of leasing ships (inclusive of time-charter;the same shall apply hereinafter) or entrusting others with the operation of ships. 5 The "forwarding agency" within the meaning of this Law shall mean the business of one who acts for others in forwarding of cargoes by sea (hereinafter referred to as the "cargo forwarding by sea" ) under his own name. 6 The "shipping brokerage" within the meaning of this Law shall mean the business of broking in connection with cargo forwarding by sea, lease, sale and purchase of ships or entrustment of ship's operation. 7 The "shipping company's agency" within the meaning of this Law shall mean the business of acting as agent, on behalf of a person who is engaging in ship-operation or ship's lease business, with respect to transactions which are usually conducted within the purview of his business. 8 The "tallying" within the meaning of this Law shall mean the counting of shipping cargoes or certifying of delivery thereof at the time of loading or discharge, the "tallying business" the business of conducting tallying and the "tallyman" the person who is carrying on tallying as his occupation. 9 The "survey" within the meaning of this Law shall mean the conducting of verification, investigation and appraisal on stowage of shipping cargoes, the "surveying business" the business of conducting survey and the "surveyor" the person who is carrying on survey as his occupation. 10 The "measuring" within the meaning of this Law shall mean the conducting of reckoning or verification of measurement or weight of shipping cargoes at the time of loading or discharge, the "measuring business" the business of conducting measuring, the "measurer" the person who is carrying on measuring at his occupation.

Chapter II Ship-operation Business

(Licence for the Enterprise) Article 3. No person shall carry on liner service enterprise unless he has obtained the licence of the Minister of Transportation for each route. 2 Any person who intends to obtain the licence referred to in the preceding paragraph shall submit an application furnished with a business program to the Minister of Transportation in accordance with the procedures provided for by Ministerial Ordinance. 3 Conditions may be attached to the licence as referred to in paragraph 1.

(Standards for Licence) Article 4. Whenever any application for a licence as referred to in the preceding Article has conformed to the following standards, the Minister of Transportation shall, for the purpose of ensuring continuation of the liner service enterprise, grant a licence to the applicant.(Items (2) and (5) shall not apply to such a liner service enterprise as may be granted subsidy by virture of the provisions of Article 20.): (1) That as a result of the granting of a licence to the enterprise under application, the whole of transportation capacity supplied will not conspicuously be in excess of the whole of requirements for transportation on the route concerned; (2) That the unit transportation capacity to be supplied from the enterprise concerned will not be remarkably unbalanced with the average transportation demands on the route concerned; (3) That the transportation facilities, which are to be utilized in the said enterprise, such as vessels and anchorage facilities, are adapted for the nature of transportation requirements and geographical condition of the route concerned; (4) That the enterprise concerned is backed by a voyage plan most suited for the conveniences of utilizers; (5) That the financial foundation of the enterprise concerned is of reliability; (6) That the enterprise concerned is in such management form that the scope of responsibilities to be assumed by the person carrying on the enterprise is clearly delineated; (7) That the person who intends to carry on the enterprise concerned does not fall under the following cases: a) Where the said person was sentenced to penal servitude or imprisonment of not less than one year, and two years have not yet elapsed since the time when the execution of the sentence was finished or when he was relieved of such execution; b) Where the licence for his liner service enterprise was cancelled and two years have not yet elapsed since the cancellation; c) Where the applicant is a juridical person, any officer of the said juridical person falls under (a) or (b).

(Decision on Granting of Licence) Article 5. In case the Minister of Transportation intends to make decision on whether or not the application for a licence as referred to in Article 3 conforms to the standards of the preceding Article, he shall consult with the Transportation Council.

(Public Hearing) Article 6. In case the Transportation Council intends to make decision on the matter referred thereto by the Minister of Transportation in accordance with the provisions of the preceding Article, the same shall hold a public hearing at the date and place previously announced publicly and hear the opinion of the applicant and the persons interested.

(Obligation of Commencing the Enterprise) Article 7. Any person who has obtained the licence of a liner service enterprise shall commence the said enterprise in accordance with the business program concerned, within a period to be designated by the Minister of Transportation. 2 In cases where the liner service enterprise cannot be commenced within the period referred to in the preceding paragraph on account of an act of God or any other unavoidable circumstances, the Minister of Transportation may, upon application, extend the said period.

(Approval of Passenger Fares and Charges) Article 8. The person who is carrying on the liner service enterprise (hereinafter referred to as the "liner service enterpriser" ) shall obtain the approval of the Minister of Transportation for the passenger fares and charges on baggages, personal effects and parcel cargoes in accordance with the procedures provided for by Ministerial Ordinance. In case of alteration of the said fares and charges, the same shall apply. 2 The Minister of Transportation shall not take measures concerning the approval referred to in the preceding paragraph unless he has consulted with the Transportation Council.

(Approval of Transportation Contracts) Article 9. The liner service enterpriser shall set up the terms and conditions of transportation contracts and obtain the approval of the Minister of Transportation in accordance with the procedures provided for by Ministerial Ordinance. The same shall apply to the case of alteration of the said terms and conditions. 2 In the transportation contracts the passenger fares, charges on baggages, personal effect and parcel cargoes and other terms and conditions of transportation, and the enterpriser's liability for transportation shall be clearly specified.

(Publication of Passenger Fares, Charges, etc.) Article 10. The liner service enterpriser shall make public the passenger fares and charges referred to in Article 8 paragraph 1 and the terms and conditions of transportation contracts referred to in the preceding Article in accordance with the method provided for by Ministerial Ordinance.

(Alteration in Voyage Plan) Article 11. Any liner service enterpriser who intends to change his voyage plan shall obtain an approval of the Minister of Transportation in accordance with the procedures provided for by Ministerial Ordinance.

(Obligation of Acceptance of Transportation) Article 12. No liner service enterpriser shall refuse to accept transportation of passengers, baggages, personal effects and parcel cargoes except in the following cases: (1) Where the transportation concerned is in contravention of the provisions of laws or ordinances or is prejudicial to public order or good morals; (2) Where there are obstacles to the transportation owing to an act of God or other unavoidable causes; (3) Where the said transportation does not conform to the terms and conditions of transportation contracts which were granted the approval in accordance with the provisions of Article 9.

(Sequence of Transportation, etc.) Article 13. A liner service enterpriser shall execute the transportation of passengers, baggages, personal effects and parcel cargoes in accordance with the order of succession in their applications for transportation. However, this shall not apply in case the Minister of Transportation has ordered as provided for in Article 26 or there is any other good reason. 2 A liner service enterpriser shall not, in carrying passengers, baggages, personal effects and parcel cargoes give unfair and discriminative treatments to particular customers.

(Securing Ship-operation Specified in Business Program) Article 14. No liner service enterpriser shall neglect ship-operation specified in the business program except in case where there are an act of God or other unavoidable causes. 2 The Minister of Transportation may, when he deems that a liner service enterpriser violates the provisions of the preceding paragraph, order the liner service enterpriser to carry on ship-operation in accordance with the business program. 3 The Minister of Transportation shall, when he intends to give orders referred to in the preceding paragraph, inquire and hear the opinion of the said liner service enterpriser, at the date and place previously designated. The liner service enterpriser concerned may give his opinion and submit the evidence at the place of hearing.

(Permission for the Suspension or Discontinuance of Business) Article 15. No liner service enterpriser shall suspend or discontinue his business unless he has obtained a permission from the Minister of Transportation in accordance with the procedures provided for by Ministerial Ordinance. 2 The Minister of Transportation shall consult the Transportation Council, when he intends to take measures concerning the permission referred to in the preceding paragraph. 3 The Provisions of Article 6 shall apply mutatis mutandis to the case where the Transportation Council intends to make decision on the matter which has been referred to it in accordance with the provisions of the preceding paragraph.

(Suspension of Business and Cancellation of Licence) Article 16. The Minister of Transportation may, if a liner service enterpriser falls under any of the following items, order him to suspend his business or cancel the licence thereof: (1) In case where he has contravened this Law or orders or dispositions based on this Law; (2) In case where he has been driven into a great difficulty of management because of shortage of his resources, reliance or inadequacy of business equipment, become inadequate. 2 The Minister of Transportation shall consult with the Transportation Council and hear its opinion, when he intends to take the measures referred to in the preceding paragraph. 3 The provisions of Article 6 shall apply mutatis mutandis to the case where the Transportation Council intends to make decision on the matter referred thereto in accordance with the provisions of the preceding paragraph.

(Lapse of Licence) Article 17. The licence for liner service enterprise shall lose its effect if the enterprise has not been commenced within the period designated by the Minister of Transportation in accordance with the provisions of Article 7 paragraph 1 or within the period extended in accordance with the provisions of paragraph 2 of the said Article.

(Approval for Transfer and Taking Over of Business, etc.) Article 18. The transfer and taking over of the liner service enterprise shall not be effective unless the approval of the Minister of Transportation has been obtained. 2 The merger and dissolution of a company which operates liner service enterprise shall not be effective unless the approval of the Minister of Transportation has been obtained;provided that this shall not apply to the case where a company which operates liner service enterprise amalgamates a company which does not operate liner service enterprise. 3 The person who has taken over the liner service enterprise upon obtaining the approval in accordance with the provisions of paragraph 1 or the company which continues to exist or the company which has come into existence after a company operating liner service enterprise was merged with another company with the approval as provided for in the preceding paragraph, shall succeed to the rights and obligations based on the licence. 4 In case of a liner service enterpriser's death, the successor shall not continue to operate the liner service enterprise which was operated by his successee unless he has obtained the approval of the Minister of Transportation. 5 In cases where the successor made an application for approval within sixty days after the death of his successee in accordance with the provisions of the preceding paragraph, he may, irrespective of the provisions of Article 3 paragraph 1, continue to operate the liner service enterprise until he receives the notification of the approval or disapproval of his application. 6 The Minister of Transportation shall not take measures concerning the approval referred to in paragraph 1, 2 or 4 unless he has consulted the Transportation Council. 7 The provision of Article 6 shall apply mutatis mutandis to the case where the Transportation Council intends to make a decision on matters referred to it in accordance with the provision of the preceding paragraph.

(Order to Improve Service) Article 19. In regard to the business of a liner service enterpriser, the Minister of Transportation may, when it is deemed that there is some obstruction to the utilizers'convenience, after consulting with the Transportation Council, order the said liner service enterpriser, to execute the following matters: (1) Changing the passenger fares, charges for baggages and personal effects, parcel cargoes and other terms and conditions of transportation contracts and agreement; (2) Changing the business program. 2 The provisions of Article 6 shall apply mutatis mutandis to the case where the Transportation Council intends to make decision on matters referred to it in accordance with the provisions of the preceding paragraph.

(Granting of Subsidy) Article 20. The Government may grant subsidy within the limit of each year's budget to a liner service enterprise whose management of business is difficult on account of the quality of the routes concerned, in order to secure the transportation such as carrying mails, etc. to meet the bare necessity of the public interests. 2 The arrangement and preservation of books or other necessary matters for managing accounts as of the person who has been subsidized in accordance with the provisions of the preceding paragraph, shall be provided for by a Ministerial Ordinance.

(Collection of Report) Article 21. The Minister of Transportation may, when deemed necessary, require the liner service enterpriser to make report on the business affairs in accordance with the form provided for by Ministerial Ordinance. 2 The liner service enterpriser shall, when required to make report, make the true and accurate report.

(Inspection) Article 22. The Minister of Transportation may, when deemed necessary for ensuring the enforcement of this Law, cause the competent official to visit vessels, working places or other places employed for the liner service enterprise, and inspect books, documents and other articles, or make questions thereupon. 2 When the compentent official inspects or makes inquiry in accordance with the provisions of the preceding paragraph, he shall carry with him an identification card testifying to his official statue and show the same upon request of the liner service enterpriser or other persons concerned.

(Tramp Service Enterpriser's Obligation to make Report) Article 23. Any person who engages in tramp service enterprise shall make a report to that effect to the Minister of Transportation in accordance with the procedures provided for by Ministerial Ordinance within thirty days from the day of commencement of the said business.

Article 24. In case a tramp service enterpriser has discontinued his business, he shall make a report to that effect to the Minister of Transportation within thirty days from the day when he has discontinued his business, in accordance with the procedures provided for by Ministerial Ordinance.

(Provisions to Apply Mutatis Mutandis to the Tramp Service Enterprise) Article 25. The provisions of Article 21 of this Law shall apply mutatis mutandis to the tramp service enterprise.

(Order for Navigate) Article 26. The Minister of Transportation may, only in the ease where a definite route is indispensable for maintaining the public safety such as relief from of disaster and where no person is found to effect navigation on the said route at his own will, or the navigators on the route prove extremely insufficient, order a person who pursues the ship-operation business (hereinafter referred to as "the ship-operator" ) to effect navigation, designating the route, vessel or persons or goods to be transported. The same shall apply to the case where a definite route is indispensable for securing the transportation of important materials to be designated by Cabinet Order and no person is found to effect on the route of his own will, or the navigators on the route prove extremely insufficient. 2 Those orders referred to in the provisions of the preceding paragraph 1 which will be accompanied by the compensation of loss as provided for in the provisions of the following Article shall be issued so that the total sum of compensation shall not exceed the limit of budgetary appropriation approved by the Diet. 3 The Minister of Transportation shall not except in case of emergency, issue the order referred to in paragraph 1 unless he has consulted with the Transportation Council to hear its opinion.

(Compensation for Loss) Article 27. The Government shall compensate a person for the loss sustained by virtue of the orders provided for in the provisions of the preceding Article. 2 The amount of loss to be compensated as provided for in the preceding paragraph 1 shall be a loss to be caused by making the said voyage under ordinary circumstances and the amount of loss to be caused by the failure in making the profits which could have been gained under ordinary circumstances provided that the said order had not been issued. 3 The Minister of Transportation shall not decide the amount of compensation as stipulated in the preceding paragraph 2 unless he has consulted with the Transportation Council to hear its opinion. 4 Necessary matters for the compensation for loss except those stipulated in the preceding three paragraphs shall be provided for by Ministerial Ordinance.

(Exception to the Application of the Law relating to Prohibition of Private Monopoly and Method of Preserving Fair Trade Association Law) Article 28. An agreement, contract or conference activity (hereinafter referred to as the "conference activity, etc." ) on the transportation conditions such as freight rates, passenger fares and charges, sea route, ship's assignment or shipment of cargoes as is made between one ship-operator and another, and not falling under either of the following items, shall be exempted from the application of the provisions of the Law concerning the Prohibition of Private Monopoly and Methods of Preserving Fair Trade (Law No.54 of 1947) and the Trade Association Law (Law No.191 of 1948). However, this shall not apply to the cases where the unfair competitive method is adopted or the substantial restriction on competition in the specified transaction field tends to cause the unjust raising of freight rates, passenger fares and charges: (1) To restrict a shipper's liberty by means of deferred rebate system.(The system signifies that, as remuneration for a shipper's sure promise, and the fulfilment of it, to entrust the transportation of all or a portion of his cargoes solely to the ship-operator engaged in a conference activity, etc. for a definite period, a percentage of the freight money and other charges paid by the said shipper during the said period shall be returned after the lapse of the said period.) (2) To use a fighting ship.(The ship signifies the one used on the definite routes by the ship-operator engaged in the said conference activity with a view to driving out of the said routes vessels of any ship-operator not engaged in the said conference activity, etc. and thereby eliminate, provent and restrict competition.) (3) To retaliate upon a shipper by way of refusing to transport his cargoes, restricting them and making a similar discrimination on the ground that he entrusted his cargoes to a ship-operator not engaged in the said conference activity, etc.

(Report on Agreement on Transportation) Article 29. The ship-operator shall, in case he intends to make the conference activity, etc. as referred to in the preceding Article 28, make in advance a report to that effect to the Minister of Transportation. The same shall apply to the case where there is any change in the conference activity, etc.

(Acts to be Prohibited) Article 30. The following matters shall be unlawful for any ship-operator: (1) To make any unfair or unjustly discriminatory contract with any shipper based on the volume of freight offered, or unfairly treat or unjustly discriminate against any shipper in the matter of cargo space accommodations or other facilities;the loading and landing of freight in proper conditions;or the adjustment and settlement of claims. (2) To make or give any under or unreasonable prefence or advantage to any particular person, locality or description of traffic in any respect whatsoever, or to subject any particular person, locality or description of traffic to any undue or unreasonable prejudice or disadvantage in any respect whatsoever. (3) To enter into any combination, agreement, or understanding, express or implied, with respect to transportation of persons or property, that excludes from admission upon equal terms with all other parties thereto any ship-operator who has applied for such admission, or that attempts to fix any rate, fare, or charge which is unjustly discriminatory between shippers or ports, or unjustly prejudicial to Japanese exporters as compared with their foreign competitors or which is otherwise unjust or unreasonable.

(Power of the Fair Trade Commission) Article 31. No finding or action on the part of the Minister of Transportation under the provisions of this Law shall be construed as binding on the Fair Trade Commission whether or not, a conference activity, etc. on transportation conditions falls under any item of Article 28 or of the preceding Article, or as preventing the Fair Trade Commission from issuing a notice of hearing or exercising authority under the Law concerning Prohibition of Private Monopoly and Methods of Preserving Fair Trade on the ground that such conference activity, etc. allegedly violates the said Law.

(Conference Activities, etc. Existing) Article 32. The provisions of this Law shall be applicable to all conference activities, etc. on transportation conditions existing on the day of enforcement of this Law.

Chapter III Ship's Lease Business, Forwarding Agency, Shipping Brokerage, Shipping Company's Agency, Tallying Business, Surveying and Measuring Business

(Provisions to Apply Mutatis Mutandis) Article 33. The provisions of Articles 21, 23 and 24 of this Law shall apply mutatis mutandis to the ship's lease business, forwarding agency, shipping brokerage, shipping company's agency, tallying, surveying and measuring business.

(Statement of Name) Article 34. Any person engaging in tallying, surveying or measuring business shall, when requested for conducting tallying, surveying or measuring (hereinafter referred to as the "tallying, etc." ), make the applicant or the party concerned acquainted with the names of persons who are engaged in the said tallying, etc.

(Registration) Article 35. Any person who intends to be a tallyman, surveyor or measurer (hereinafter referred to as the "tallyman, etc." ) shall be registered on the tallyman, surveyor or measurer register book of the Maritime Bureau which has the jurisdiction over his location in accordance with the procedures as provided for in the provisions of a Ministerial Ordinance.

(Reasons for Disqualification) Article 36. No person who falls under any of the following items shall be a tallyman, etc.: (1) An incompetent or quasi-incompetent person; (2) In case a person was sentenced to imprisonment of not less than one year or any severer punishment and one year has not yet elapsed from the day on which he has finished his term or he was released from the execution; (3) In case a person has his registration cancelled under the provisions of Article 39 paragraph 2 and one year has not yet elapsed from the day on which his registration was cancelled.

(Cancellation of Registration) Article 37. In case any tallyman, etc. falls under any of the following items, the Chief of Maritime Bureau shall cancel the registration: (1) In case the tallyman, etc. has discontinued his business; (2) In case the tallyman, etc. has died; (3) In case the tallyman, etc. has come to fall under any of the items of the preceding Article.

(Payment of Registration-Fee) Article 38. Any person who intends to be registered as a tallyman, etc. shall pay 1,000 yen as registration-fee.

(Acts to be Prohibited) Article 39. No tallyman, etc. shall do such act as falls under any of the following items with regard to shipping cargoes: (1) Wrong reckoning of parcels or fraudulent verification of delivery; (2) Fraudulent verification or surveying pertaining to loading; (3) Wrong calculation of measurement or weight. 2 In cases where any tallyman, etc. has violated the provisions of the preceding paragraph, the Chief of Maritime Bureau may suspend the business of the said tallyman, etc. for the period less than one year or cencel the said registration. 3 The Chief of Maritime Bureau shall, when he intends to take the disciplinary measure provided for in the preceding paragraph, hear the views of the said tallyman, etc. at the date and place designated beforehand. The said tallyman, etc. may express his opinion or submit evidence at the place of hearing.

Chapter IV Standard and Classification of Vessels to be Used for Marine Transportation Business

(Standards of Vessels) Article 40. The Minister of Transportation may designate the standards for steel vessels to be used for the marine transportation business, make them public and encourage to construct vessels in accordance with the said standards.

(Classification of Vessels) Article 41. The Minister of Transportation may, when deemed necessary for securing sound development of marine transportation business, recommend those who intend to give an order for construction of vessels to construct such vessels as are qualified to acquire registration of classifications fixed by a Japanese or foreign ship's classification association.

Chapter V Miscellaneous Provisions

(Provisions concerning State, Japanese National Railways and Civilian Merchant Marine Committee) Article 42. The provisions of this Law shall not apply to the case where the State, Japanese National Railways or Civilian Merchant Marine Committee conducts the marine transportation enterprise. 2 In case the Minister of Transportation intends to take measures concerning the approval for the commencement of ferry service by Japanese National Railways in accordance with the provisions of Article 53 of the Japanese National Railways Law (Law No.256 of 1949), the said Minister shall take into consideration the purport of the provisions of Article 4 of this Law, in so far as the said service belongs to the category of liner service enterprise. 3 In case the State intend to conduct the liner service enterprise, the competent Government agency shall consult with the Minister of Transportation.

(Provisions concerning Vessels of less than 5 tons, etc.) Article 43. The provisions of this Law shall not apply to the marine transportation enterprise which operates only such vessels as are specified in the following items: (1) Vessels of less than five gross tons; (2) Boats propelled exclusively or chiefly with oars.

(Ship-operation Business operated on Lakes, Marshes or Rivers) Article 44. The provisions of this Law shall apply mutatis mutandis to the ship-operation business conducted exclusively on a lake, marsh or river. In such case, "vessels of less than five gross tons" in the preceding Article shall read "vessels of less than twenty gross tons" .

(Administrative Appeal) Article 45. Any person who has compaint against the measures taken by an administrative agency in accordance with this Law may file an administrative appeal against the same measures.

Chapter VI Penal Provisions

Article 46. Any person who has not obeyed the order given in accordance with the provisions of Article 26 paragraph 1 shall be liable to penal servitude not exceeding 6 months or a fine of not more than 100,000 yen.

Article 47. Any person who has conducted the liner service enterprise without having been granted the licence as provided for in the provisions of Article 3 paragraph 1 shall be liable to a fine not more than 300,000 yen.

Article 48. Any person who has fallen under any of the following items shall be liable to a fine not more than 30,000 yen: (1) Those who have performed without approval or permission an action for which an approval or permission is required in accordance with the provisions of Article 8 paragraph 1, Article 9 paragraph 1, Article 11 or Article 15; (2) Those who have violated the provisions of Article 10, 12, 13 or 34; (3) Those who have engaged in tallying, etc. as their occupation without getting registered in accordance with the provisions of Article 35; (4) Those who have rejected, disturbed or evaded inspection, or have made no answer or a false answer in response to the questions in violation of the provisions of Article 22 paragraph 1; (5) Those who have made no report or a false report in violation of the provisions of Article 21 (including the case of application mutatis mutandis of the same Article under Articles 25 and 33); (6) Any person who has made any of the acts whereon a report is required in accordance with the provisions of Article 29 without making the report.

Article 49. Any person who has made no report or a false report in violation of the provisions of Article 23 or Article 24 (including the case of application mutatis mutandis to the respective provisions in Article 33) shall be liable to a fine not more than 10,000 yen.

Article 50. In case a representative for a juridical person or a proxy, employee or other worker of a juridical or natural person has violated any of the provisions of Articles 46 to 48 inclusive in connection with the business of the said juridical or natural person, not only the violator himself shall be punished but also the said juridical or natural person shall be liable to a fine as provided for in this Article.