10.1 In the CMC 1992, a sea towage contract is a contract whereby the tug owner undertakes to tow an object by sea with a tug from one place to another, and the tow party pays the towage. Towage in the CMC 1992 does not include the towage service rendered to ships within the port area.1 Furthermore, maritime towage services between the ports of the PRC shall be undertaken by ships flying the national flag of the PRC, except as otherwise provided for by laws or administrative rules and regulations. No foreign ships may engage in the maritime towage services between the ports of the PRC unless permitted by the competent authorities of transport and communications under the State Council.2