Maritime
Code of the People's Republic of China
(Adopted at the 28th Meeting of the
Standing Committee of the Seventh National People's Congress on November 7,
1992 and promulgated
by Order No.64 of the President of the People's Republic of
China on November 7, 1992)
Contents
Chapter I
General Provisions
Chapter II Ships
Section 1
Ownership of Ships
Section 2
Mortgage of Ships
Section 3
Maritime Liens
Chapter III Crew
Section 1 Basic
Principles
Section 2 The
Master
Chapter IV
Contract of Carriage of Goods by Sea
Section 1
Basic Principles
Section 2
Carrier's Responsibilities
Section 3
Shipper's Responsibilities
Section 4
Transport Documents
Section 5
Delivery of Goods
Section 6
Cancellation of Contract
Section 7
Special Provisions Regarding Voyage Charter Party
Section 8
Special Provisions Regarding Multimodal Transport Contract
Chapter V
Contract of Carriage of Passengers by Sea
Chapter VI Charter Parties
Section 1
Basic Principles
Section 2
Time Charter Party
Section 3
Bareboat Charter Party
Chapter VII Contract of
Sea Towage
Chapter VIII Collision of Ships
Chapter IX
Salvage at Sea
Chapter X
General Average
Chapter XI
Limitation of Liability for Maritime Claims
Chapter XII Contract of
Marine Insurance
Section 1
Basic Principles
Section 2
Conclusion, Termination and Assignment of Contract
Section 3
Obligations of the Insured
Section 4
Liability of the Insurer
Section 5
Loss of and Damage to the Subject Matter Insured and Abandonment
Section 6
Payment of Indemnity
Chapter XIII Limitation of Time
Chapter XIV Application of Law in Relation to Foreign-related Matters
Chapter XV
Supplementary Provisions
Chapter
I
General
Provisions
Article 1 This Code is enacted with a view to regulating the relations
arising from maritime transport and those pertaining to ships, to securing
and
protecting the legitimate rights and interests of the parties concerned, and to
promoting the development of maritime transport,
economy and trade.
Article 2 "Maritime transport" as referred to in this Code
means the carriage of goods and passengers by sea, including the sea-river
and
river-sea direct transport.
The provisions concerning contracts of
carriage of goods by sea as contained in Chapter IV of this Code shall not be
applicable to
the maritime transport of goods between the ports of the People's
Republic of China.
Article 3 "Ship" as referred to in this Code means sea-going
ships and other mobile units, but does not include ships or craft to
be used
for military or public service purposes, nor small ships of less than 20 tons
gross tonnage.
The term "ship" as referred to
in the preceding paragraph shall also include ship's apparel.
Article 4 Maritime transport and towage services between the ports of
the People's Republic of China shall be undertaken by ships flying the
national
flag of the People's Republic of China, except as otherwise provided for by
laws or administrative rules and regulations.
No foreign ships may engage in the
maritime transport or towage services between the ports of the People's
Republic of China unless
permitted by the competent authorities of transport
and communications under the State Council.
Article 5 Ships are allowed to sail under the national flag of the
People's Republic of China after being registered, as required by law, and
granted
the nationality of the People's Republic of China.
Ships illegally flying the national flag of the People's Republic of
China shall be prohibited and fined by the authorities concerned.
Article 6 All matters pertaining to maritime transport shall be
administered by the competent authorities of transport and communications under
the State Council. The specific measures governing such administration shall be
worked out by such authorities and implemented after
being submitted to and
approved by the State Council.
Chapter
II
Ships
Section
1
Ownership
of Ships
Article 7 The ownership of a ship means the shipowner's rights to
lawfully possess, utilize, profit from and dispose of the ship in his ownership.
Article 8 With respect to a State-owned ship operated by an enterprise
owned by the whole people having a legal person status granted by the
State,
the provisions of this Code regarding the shipowner shall apply to that legal
person.
Article 9 The acquisition, transference or extinction of the ownership
of a ship shall be registered at the ship registration authorities; no
acquisition, transference or extinction of the ship's ownership shall act
against a third party unless registered.
The transference of the ownership of a
ship shall be made by a contract in writing.
Article 10 Where
a ship is jointly owned by two or more legal persons or individuals, the joint
ownership thereof shall be registered at the
ship registration authorities. The
joint ownership of the ship shall not act against a third party unless registered.
Section
2
Mortgage
of Ships
Article 11 The right of mortgage with respect to a ship is the right of
preferred compensation enjoyed by the mortgagee of that ship from the
proceeds
of the auction sale made in accordance with law where and when the mortgagor
fails to pay his debt to the mortgagee secured
by the mortgage of that ship.
Article 12 The owner of a ship or those authorized thereby may
establish the mortgage of the ship.
The mortgage of a ship shall be
established by a contract in writing.
Article 13 The mortgage of a ship shall be established by registering
the mortgage of the ship with the ship registration authorities jointly
by the
mortgagee and the mortgagor. No mortgage may act against a third party unless
registered.
The main items for the registration of the
mortgage of a ship shall be:
(1) Name or designation and address of the
mortgagee and the name or designation and address of the mortgagor of the ship;
(2) Name and nationality of the mortgaged
ship and the authorities that issued the certificate of ownership and the
certificate number
thereof;
(3) Amount of debt secured, the interest
rate and the period for the repayment of the debt.
Information about the registration of
mortgage of ships shall be accessible to the public for enquiry.
Article 14 Mortgage may be established on a ship under construction.
In registering the mortgage of a ship
under construction, the building contract of the ship shall as well be
submitted to the ship
registration authorities.
Article 15 The mortgaged ship shall be insured by the mortgagor unless
the contract provides otherwise. In case the ship is not insured, the
mortgagee
has the right to place the ship under insurance coverage and the mortgagor
shall pay for the premium thereof.
Article 16 The establishment of mortgage by the joint owners of a ship
shall, unless otherwise agreed upon among the joint owners, be subject
to the
agreement of those joint owners who have more than two thirds of the shares
thereof.
The mortgage established by the joint
owners of a ship shall not be affected by virtue of the division of ownership
thereof.
Article 17 Once a mortgage is established on a ship, the ownership of
the mortgaged ship shall not be transferred without the consent of the
mortgagee.
Article 18 In case the mortgagee has transferred all or part of his
right to debt secured by the mortgaged ship to another person, the mortgage
shall
be transferred accordingly.
Article 19 Two
or more mortgages may be established on the same ship. The ranking of the
mortgages shall be determined according to the dates
of their respective registrations.
In case two or more mortgages are
established, the mortgagees shall be paid out of the proceeds of the auction
sale of the ship in
the order of registration of their respective mortgages.
The mortgages registered on the same date shall rank equally for payment.
Article 20 The mortgages shall be extinguished when the mortgaged ship
is lost. With respect to the compensation paid from the insurance coverage
on
account of the loss of the ship, the mortgagee shall be entitled to enjoy
priority in compensation over other creditors.
Section
3
Maritime
Liens
Article 21 A maritime lien is the right of the claimant, subject to the
provisions of Article 22 of this Code, to take priority in compensation
against
shipowners, bareboat charterers or ship operators with respect to the ship
which gave rise to the said claim.
Article 22 The following maritime claims shall be
entitled to maritime liens:
(1) Payment claims for wages, other
remuneration, crew repatriation and social insurance costs made by the Master,
crew members and
other members of the complement in accordance with the
relevant labour laws, administrative rules and regulations or labour contracts;
(2) Claims in respect of loss of life or
personal injury occurred in the operation of the ship;
(3) Payment claims for ship's tonnage
dues, pilotage dues, harbour dues and other port charges;
(4) Payment claims for salvage payment;
and
(5) Compensation claims for loss of or
damage to property resulting from tortious act in the course of the operation
of the ship.
Compensation claims for oil pollution
damage caused by a ship carrying more than 2,000 tons of oil in bulk as cargo
that has a valid
certificate attesting that the ship has oil pollution
liability insurance coverage or other appropriate financial security are not
within the scope of sub-paragraph(5) of the preceding paragraph.
Article 23 The maritime claims set out in paragraph 1 of Article 22
shall be satisfied in the order listed. However, any of the maritime claims
set
out in sub-paragraph(4) arising later than those under sub-paragraph (1)
through (3) shall have priority over those under sub-paragraph
(1) through
(3).In case there are more than two maritime claims under sub-paragraphs (1),(2),(3) or (5) of paragraph 1 of Article
22, they shall be satisfied at the same time regardless of their respective
occurrences;
where they could not be paid in full, they shall be paid in
proportion. Should there be more than two maritime claims under
sub-paragraph (4), those arising
later shall be satisfied first.
Article 24 The legal costs for enforcing the maritime liens, the
expenses for preserving and selling the ship, the expenses for distribution
of
the proceeds of sale and other expenses incurred for the common interests of
the claimants, shall be deducted and paid first from
the proceeds of the
auction sale of the ship.
Article 25 A maritime lien shall have priority over a possessory lien,
and a possessory lien shall have priority over ship mortgage.
The possessory lien referred to in the
preceding paragraph means the right of the ship builder or repairer to secure
the building
or repairing cost of the ship by means of detaining the ship in
his possession when the other party to the contract fails in the
performance
thereof. The possessory lien shall be extinguished when the ship builder or
repairer no longer possesses the ship he
has built or repaired.
Article 26 Maritime liens shall not be extinguished by virtue of the
transfer of the ownership of the ship, except those that have not been enforced
within 60 days of a public notice on the transfer of the ownership of the ship
made by a court at the request of the transferee when
the transfer was
effected.
Article 27 In case the maritime claims provided for in Article 22 of
this Code are transferred, the maritime liens attached thereto shall be
transferred accordingly.
Article 28 A maritime lien shall be enforced by the court by arresting
the ship that gave rise to the said maritime lien.
Article 29 A maritime lien
shall, except as provided for in Article 26 of this Code, be extinguished under
one of the following circumstances:
(1) The maritime claim attached by a
maritime lien has not been enforced within one year of the existence of such
maritime lien;
(2) The ship in question has been the
subject of a forced sale by the court; or
(3) The ship has been lost.
The period of one year specified in
sub-paragraph (1) of the preceding paragraph shall not be suspended or
interrupted.
Article 30 The provisions of this Section shall not affect the
implementation of the limitation of liability for maritime claims provided for
in Chapter Xl of this Code.
Chapter
III
Crew
Section
1
Basic
Principles
Article 31 The term "crew" means the entire complement of the
ship, including the Master.
Article 32 The Master, deck officers, chief engineer, engineers,
electrical engineer and radio operator must be those in possession of
appropriate
certificates of competency.
Article 33 Chinese "crew" engaged in international voyages
must possess Seaman's Book and other relevant certificates issued by the
harbour superintendency authorities of the People's Republic of China.
Article 34 In the absence of specific stipulations in this Code as
regards the employment of the crew as well as their labour-related rights
and
obligations, the provisions of the relevant laws and administrative rules and
regulations shall apply.
Section
2
The
Master
Article 35 The Master shall be responsible for the management and
navigation of the ship.
Orders given by the Master within the
scope of his functions and powers must be carried out by other members of the
crew, the passengers
and all persons on board.
The Master shall take necessary measures
to protect the ship and all persons on board, the documents, postal matters,
the goods as
well as other property carried.
Article 36 To ensure the safety of the ship and all persons on board,
the Master shall be entitled to confine or take other necessary measures
against those who have committed crimes or violated laws or regulations on
board, and to guard against their concealment, destruction
or forging of
evidence.
The Master, having taken actions as
referred to in the preceding paragraph of this Article, shall make a written
report of the case,
which shall bear the signature of the Master himself and
those of two or more others on board, and shall be handed over, together
with
the offender, to the authorities concerned for disposition.
Article 37 The Master shall make entries in the log book of any
occurrence of birth or death on board and shall issue a certificate to that
effect
in the presence of two witnesses. The death certificate shall be attached
with a list of personal belongings of the deceased, and
attestation shall be
given by the Master to the will, if any, of the deceased. Both the death
certificate and the will shall be taken
into safe keeping by the Master and
handed over to the family members of the deceased or the organizations concerned.
Article 38 Where a sea casualty has occurred to a ship and the life and
property on board have thus been threatened, the Master shall, with crew
members
and other persons on board under his command, make best efforts to run to the
rescue. Should the foundering and loss of the
ship have become inevitable, the
Master may decide to abandon the ship. However, such abandonment shall be
reported to the shipowner
for approval except in case of emergency.
Upon abandoning the ship, the Master must
take all measures first to evacuate the passengers safely from the ship in an
orderly way,
then make arrangements for crew members to evacuate, while the
Master shall be the last to evacuate. Before leaving the ship, the
Master shall
direct the crew members to do their utmost to rescue the deck log book, the
engine log book, the oil record book, the
radio log book, the charts, documents
and papers used in the current voyage, as well as valuables, postal matters and
cash money.
Article 39 The duty of the Master in the management and navigation of
the ship shall not be absolved even with the presence of a pilot piloting
the
ship.
Article 40 Should death occur to the Master or the Master be unable to
perform his duties for whatever reason, the deck officer with the highest
rank
shall act as the Master; before the ship sails from its next port of call, the
shipowner shall appoint a new Master to take
command.
Chapter
IV
Contract
of Carriage of Goods by Sea
Section
1
Basic
Principles
Article 41 A contract of carriage of goods by sea is a contract under
which the carrier, against payment of freight, undertakes to carry by sea the goods contracted for shipment
by the shipper from one port to another.
Article 42 For the purposes of this Chapter:
(1) "Carrier" means the person
by whom or in whose name a contract of carriage of goods by sea has been
concluded with a
shipper;
(2) "Actual carrier" means the
person to whom the performance of carriage of goods, or of part of the carriage,
has been
entrusted by the carrier, and includes any other person to whom such
performance has been entrusted under a sub-contract;
(3) "Shipper" means:
a) The person by whom or in whose name or
on whose behalf a contract of carriage of goods by sea has been concluded with
a carrier;
b) The person by whom or in whose name or
on whose behalf the goods have been delivered to the carrier involved in the
contract of
carriage of goods by sea;
(4) "Consignee" means the person
who is entitled to take delivery of the goods;
(5) "Goods" includes live
animals and containers, pallets or similar articles of transport supplied by
the shipper for consolidating
the goods.
Article 43 The carrier or the shipper may demand confirmation of the
contract of carriage of goods by sea in writing. However, voyage charter
shall
be done in writing. Telegrams, telexes and telefaxes have the effect of written
documents.
Article 44 Any stipulation in a contract of carriage of goods by sea or
a bill of lading or other similar documents evidencing such contract
that
derogates from the provisions of this Chapter shall be null and void. However,
such nullity and voidness shall not affect the
validity of other provisions of
the contract or the bill of lading or other similar documents. A clause
assigning the benefit of
insurance of the goods in favour of the carrier or any
similar clause shall be null and void.
Article 45 The provisions of Article 44 of this Code shall not
prejudice the increase of duties and obligations by the carrier besides
those set out in this Chapter.
Section
2
Carrier's
Responsibilities
Article 46 The responsibilities of the carrier with regard to the goods
carried in containers covers the entire period during which the carrier
is in
charge of the goods, starting from the time the carrier has taken over the
goods at the port of loading, until the goods have
been delivered at the port
of discharge. The responsibility of the carrier with respect to non-containerized
goods covers the period
during which the carrier is in charge of the goods,
starting from the time of loading of the goods onto the ship until the time the
goods are discharged therefrom. During the period the carrier is in charge of
the goods, the carrier shall be liable for the loss
of or damage to the goods,
except as otherwise provided for in this Section.
The provisions of the preceding paragraph
shall not prevent the carrier from entering into any agreement concerning
carrier's responsibilities
with regard to non-containerized goods prior to
loading onto and after discharging from the ship.
Article 47 The carrier shall, before and at the beginning of the
voyage, exercise due diligence to make the ship seaworthy, properly man, equip
and supply the ship and to make the holds, refrigerating and cool chambers and
all other parts of the ship in which goods are carried,
fit and safe for their
reception, carriage and preservation.
Article 48 The carrier shall properly and carefully load, handle, stow,
carry, keep, care for and discharge the goods carried.
Article 49 The carrier shall carry the goods to the port of discharge
on the agreed or customary or geographically direct route.
Any deviation in saving or attempting to
save life or property at sea or any reasonable deviation shall not be deemed to
be an act
deviating from the provisions of the preceding paragraph.
Article 50 Delay in delivery occurs when the goods have not been
delivered at the designated port of discharge within the time expressly agreed
upon.
The carrier shall be liable for the loss
of or damage to the goods caused by delay in delivery due to the fault of the
carrier, except
those arising or resulting from causes for which the carrier is
not liable as provided for in the relevant Articles of this Chapter.
The carrier shall be liable for the
economic losses caused by delay in delivery of the goods due to the fault of
the carrier, even
if no loss of or damage to the goods had actually occurred,
unless such economic losses had occurred from causes for which the carrier
is
not liable as provided for in the relevant Articles of this Chapter.
The person entitled to make a claim for
the loss of goods may treat the goods as lost when the carrier has not
delivered the goods
within 60 days from the expiry of the time for delivery
specified in paragraph 1 of this Article.
Article 51 The carrier shall not be liable for the loss of or damage to
the goods occurred during the period of carrier's responsibility arising
or
resulting from any of the following causes:
(1) Fault of the Master, crew members,
pilot or servant of the carrier in the navigation or management of the ship;
(2) Fire, unless caused by the actual
fault of the carrier;
(3) Force majeure and perils, dangers and
accidents of the sea or other navigable waters;
(4) War or armed conflict;
(5) Act of the government or competent
authorities, quarantine restrictions or seizure under legal process;
(6) Strikes, stoppages or restraint of
labour;
(7) Saving or attempting to save life or
property at sea;
(8) Act of the shipper, owner of the goods
or their agents;
(9) Nature or inherent vice of the goods;
(10) Inadequacy of packing or insufficiency
or illegibility of marks;
(11) Latent defect of the ship not
discoverable by due diligence; and
(12) Any other cause arising without the
fault of the carrier or his servant or agent.
The carrier who is entitled to exoneration
from the liability for compensation as provided for in the preceding paragraph
shall, with
the exception of the causes given in sub-paragraph (2), bear the
burden of proof.
Article 52 The carrier shall not be liable for the loss of or damage to
the live animals arising or resulting from the special risks inherent
in the
carriage thereof. However, the carrier shall be bound to prove that he has
fulfilled the special requirements of the shipper
with regard to the carriage
of the live animals and that under the circumstances of the sea carriage, the
loss or damage has occurred
due to the special risks inherent therein.
Article 53 In case the carrier intends to ship the goods on deck, he
shall come into an agreement with the shipper or comply with the custom
of the
trade or the relevant laws or administrative rules and regulations.
When the goods have been shipped on deck
in accordance with the provisions of the preceding paragraph, the carrier shall
not be liable
for the loss of or damage to the goods caused by the special
risks involved in such carriage.
If the carrier, in breach of the
provisions of the first paragraph of this Article, has shipped the goods on deck and the goods
have consequently suffered loss or damage, the carrier shall be liable
therefore.
Article 54 Where loss or damage or delay in delivery has occurred from
causes from which the carrier or his servant or agent is not entitled
to exoneration
from liability, together with another cause, the carrier shall be liable only to
the extent that the loss, damage
or delay in delivery is attributable to the
causes from which the carrier is not entitled to exoneration from liability;
however,
the carrier shall bear the burden of proof with respect to the loss,
damage or delay in delivery resulting from the other cause.
Article 55 The amount of indemnity for the loss of the goods shall be
calculated on the basis of the actual value of the goods so lost, while
that
for the damage to the goods shall be calculated on the basis of the difference
between the values of the goods before and after
the damage, or on the basis of
the expenses for the repair.
The actual value shall be the value of the
goods at the time of shipment plus insurance and freight.
From the actual value referred to in the
preceding paragraph, deduction shall be made, at the time of compensation, of
the expenses
that had been reduced or avoided as a result of the loss or damage
occurred.
Article 56 The carrier's liability for the loss of or damage to the
goods shall be limited to an amount equivalent to 666.67 Units of Account
per
package or other shipping unit, or 2 Units of Account per kilogramme of the
gross weight of the goods lost or damaged, whichever
is the higher, except
where the nature and value of the goods had been declared by the shipper before
shipment and inserted in the
bill of lading, or where a higher amount than the
amount of limitation of liability set out in this Article had been agreed upon
between the carrier and the shipper.
Where a container, pallet or similar article of transport is used to
consolidate goods, the number of packages or other shipping units
enumerated in
the bill of lading as packed in such article of transport shall be deemed to be
the number of packages or shipping
units. If not so enumerated, the goods in
such article of transport shall be deemed to be one package or one shipping
unit.
Where the article of transport is not
owned or furnished by the carrier, such article of transport shall be deemed to
be one package
or one shipping unit.
Article 57 The liability of the carrier for the economic losses
resulting from delay in delivery of the goods shall be limited to an amount
equivalent
to the freight payable for the goods so delayed. Where the loss of
or damage to the goods has occurred concurrently with the delay
in delivery
thereof, the limitation of liability of the carrier shall be that as provided
for in paragraph 1 of Article 56 of this
Code.
Article 58 The defence and limitation of liability provided for in this
Chapter shall apply to any legal action brought against the carrier with
regard
to the loss of or damage to or delay in delivery of the goods covered by the
contract of carriage of goods by sea, whether
the claimant is a party to the
contract or whether the action is founded in contract or in tort.
The provisions of the preceding paragraph
shall apply if the action referred to in the preceding paragraph is brought
against the
carrier's servant or agent, and the carrier's servant or agent
proves that his action was within the scope of his employment or agency.
Article 59 The carrier shall not be entitled to the benefit of the
limitation of liability provided for in Article 56 or 57 of this Code if it
is
proved that the loss, damage or delay in delivery of the goods resulted from an
act or omission of the carrier done with the intent
to cause such loss, damage
or delay or recklessly and with knowledge that such loss, damage or delay would
probably result.
The servant or agent of the carrier shall
not be entitled to the benefit of limitation of liability provided for in
article 56 or
57 of this Code, if it is proved that the loss, damage or delay
in delivery resulted from an act or omission of the servant or agent
of the
carrier done with the intent to cause such loss, damage or delay or recklessly
and with knowledge that such loss, damage or
delay would probably result.
Article 60 Where the performance of the carriage or part thereof has
been entrusted to an actual carrier, the carrier shall nevertheless remain
responsible for the entire carriage according to the provisions of this
Chapter. The carrier shall be responsible, in relation to
the carriage
performed by the actual carrier, for the act or omission of the actual carrier
and of his servant or agent acting within
the scope of his employment or
agency.
Notwithstanding the provisions of the
preceding paragraph, where a contract of carriage by sea provides explicitly
that a specified
part of the carriage covered by the said contract is to be
performed by a named actual carrier other than the carrier, the contract
may
nevertheless provide that the carrier shall not be liable for the loss, damage
or delay in delivery arising from an occurrence
which takes place while the
goods are in the charge of the actual carrier during such part of the carriage.
Article 61 The provisions with respect to
the responsibility of the carrier contained in this Chapter shall be applicable
to the actual
carrier. Where an action is brought against the servant or agent
of the actual carrier, the provisions contained in paragraph 2 of
Article 58
and paragraph 2 of Article 59 of this Code shall apply.
Article 62 Any special agreement under which the carrier assumes obligations
not provided for in this Chapter or waives rights conferred by this
Chapter
shall be binding upon the actual carrier when the actual carrier has agreed in
writing to the contents thereof. The provisions
of such special agreement shall
be binding upon the carrier whether the actual carrier has agreed to the
contents or not.
Article 63 Where both the carrier and the actual carrier are liable for
compensation, they shall jointly and severally be liable within the scope
of
such liability.
Article 64 If claims for compensation have been
separately made against the carrier, the actual carrier and their servants or
agents
with regard to the loss of or damage to the goods, the aggregate amount
of compensation shall not be in excess of the limitation
provided for in
Article 56 of this Code.
Article 65 The provisions of Article 60 through 64 of this Code shall
not affect the recourse between the carrier and the actual carrier.
Section
3
Shipper's
Responsibilities
Article 66 The shipper shall have the goods properly packed and shall
guarantee the accuracy of the description, mark, number of packages or
pieces,
weight or quantity of the goods at the time of shipment and shall indemnify the
carrier against any loss resulting from inadequacy
of packing or inaccuracies
in the above-mentioned information.
The carrier's right to indemnification as
provided for in the preceding paragraph shall not affect the obligation of the
carrier under
the contract of carriage of goods towards those other than the
shipper.
Article 67 The shipper shall perform all necessary procedures at the
port, customs, quarantine, inspection or other competent authorities with
respect
to the shipment of the goods and shall furnish to the carrier all relevant
documents concerning the procedures the shipper
has gone through. The shipper
shall be liable for any damage to the interest of the carrier resulting from
the inadequacy or inaccuracy
or delay in delivery of such documents.
Article 68 At the time of shipment of dangerous goods, the shipper
shall, in compliance with the regulations governing the carriage of such goods,
have them properly packed, distinctly marked and labelled and notify the
carrier in writing of their proper description, nature and
the precautions to
be taken. In case the shipper fails to notify the carrier or notified him
inaccurately, the carrier may have such
goods landed ,destroyed or rendered
innocuous when and where circumstances so require, without compensation. The
shipper shall be
liable to the carrier for any loss, damage or expense
resulting from such shipment.
Notwithstanding the carrier's knowledge of
the nature of the dangerous goods and his consent to carry, he may still have
such goods
landed, destroyed or rendered innocuous, without compensation, when
they become an actual danger to the ship, the crew and other
persons on board
or to other goods. However, the provisions of this paragraph shall not
prejudice the contribution in general average,
if any.
Article 69 The shipper shall pay the freight to the carrier as agreed.
The shipper and the carrier may reach an
agreement that the freight shall be paid by the consignee. However, such an
agreement shall
be noted in the transport documents.
Article 70 The shipper shall not be liable for the loss sustained
by the carrier or the actual carrier, or for the damage sustained by the ship,
unless such loss or damage was caused by the fault of the shipper, his servant
or agent.
The servant or agent of the shipper shall
not be liable for the loss sustained by the carrier or the actual carrier, or
for the damage
sustained by the ship, unless the loss or damage was caused by
the fault of the servant or agent of the shipper.
Section
4
Transport
Documents
Article 71 A bill of lading is a document which serves as an evidence
of the contract of carriage of goods by sea and the taking over or loading
of
the goods by the carrier, and based on which the carrier undertakes to deliver
the goods against surrendering the same. A provision
in the document stating
that the goods are to be delivered to the order of a named person, or to order,
or to bearer, constitutes
such an undertaking.
Article 72 When the goods have been taken over by the carrier or have
been loaded on board, the carrier shall, on demand of the shipper, issue
to the
shipper a bill of lading.
The bill of lading may be signed by a
person authorized by the carrier. A bill of lading signed by the Master of the
ship carrying
the goods is deemed to have been signed on behalf of the carrier.
Article 73 A bill of lading shall contain the following particulars:
(1) Description of the goods, mark, number
of packages or pieces, weight or quantity, and a statement, if applicable, as
to the dangerous
nature of the goods;
(2) Name and principal place of business
of the carrier;
(3) Name of the ship;
(4) Name of the shipper;
(5) Name of the consignee;
(6) Port of loading and the date on which
the goods were taken over by the carrier at the port of loading;
(7) Port of discharge;
(8) Place where the goods were taken over
and the place where the goods are to be delivered in case of a multimodal
transport bill
of lading;
(9) Date and place of issue of the bill of
lading and the number of originals issued;
(10) Payment of freight;
(11) Signature of the carrier or of a
person acting on his behalf.
In a bill of lading, the lack of one or
more particulars referred to in the preceding paragraph does not affect the
function of the
bill of lading as such, provided that it nevertheless meets the
requirements set forth in Article 71 of this Code.
Article 74 If the carrier has issued, on demand of the shipper, a
received-for-shipment bill of lading or other similar documents before the
goods are loaded on board, the shipper may surrender the same to the carrier as
against a shipped bill of lading when the goods have
been loaded on board. The
carrier may also note on the received-for-shipment bill of lading or other
similar documents with the name
of the carrying ship and the date of loading,
and, when so noted, the received-for-shipment bill of lading or other similar
documents
shall be deemed to constitute a shipped bill of lading.
Article 75 If the bill of lading contains particulars concerning the
description, mark, number of packages or pieces, weight or quantity of the
goods with respect to which the carrier or the other person issuing the bill of
lading on his behalf has
the knowledge or reasonable grounds to
suspect that such particulars do not accurately represent the goods actually
received, or,
where a shipped bill of lading is issued, loaded, or if he has
had no reasonable means of checking, the carrier or such other person
may make
a note in the bill of lading specifying those inaccuracies, the grounds for
suspicion or the lack of reasonable means of
checking.
Article 76 If the carrier or the other person issuing the bill of
lading on his behalf made no note in the bill of lading regarding the apparent
order and condition of the goods, the goods shall be deemed to be in apparent
good order and condition.
Article 77 Except for the note made in accordance with the provisions
of Article 75 of this Code, the bill of lading issued by the carrier or
the
other person acting on his behalf is prima facie evidence of the taking over or
loading by the carrier
of the goods as described therein. Proof to the contrary by the carrier
shall not be admissible if the bill of lading has been transferred to a third
party, including a consignee, who has acted in good faith in reliance on the
description of the goods contained therein.
Article 78 The relationship between the carrier and the holder of the
bill of lading with respect to their rights and obligations shall be defined
by
the clauses of the bill of lading.
Neither the consignee nor the holder of
the bill of lading shall be liable
for the demurrage, dead freight and all other expenses in respect of loading
occurred at the loading port unless the bill
of lading clearly states that the
aforesaid demurrage, dead freight and all other expenses shall be borne by the
consignee and the
holder of the bill of lading.
Article 79 The negotiability of a bill of lading shall be governed by
the following provisions:
(1) A straight bill of lading is not
negotiable;
(2) An order bill of lading may be
negotiated with endorsement to order or endorsement in blank;
(3) A bearer bill of lading is negotiable
without endorsement.
Article 80 Where a carrier has issued a document other than a bill of
lading as an evidence of the receipt of the goods to be carried, such a
document
is prima facie evidence of the conclusion of the contract of carriage of goods
by sea and the taking over by the carrier
of the goods as described therein.
Such documents that are issued by the
carrier shall not be negotiable.
Section
5
Delivery
of Goods
Article 81 Unless notice of loss or damage is given in writing by the
consignee to the carrier at the time of delivery of the goods by the carrier
to
the consignee, such delivery shall be deemed to be prima facie evidence of the
delivery of the goods by the carrier as described
in the transport documents
and of the apparent good order and condition of such goods.
Where the loss of or damage to the goods
is not apparent, the provisions of the preceding paragraph shall apply if the
consignee has
not given the notice in writing within 7 consecutive days from
the next day of the delivery of the goods, or, in the case of containerized
goods, within 15 days from the next day of the delivery thereof.
The notice in writing regarding the loss
or damage need not be given if the state of the goods has, at the time of delivery,
been
the subject of a joint survey or inspection by the carrier and the
consignee.
Article 82 The carrier shall not be liable for compensation if no
notice on the economic losses resulting from delay in delivery of the goods
has
been received from the consignee within 60 consecutive days from the next day
on which the goods had been delivered by the carrier
to the consignee.
Article 83 The consignee may, before taking delivery of the goods at
the port of destination, and the carrier may, before delivering the goods
at
the port of destination, request the cargo inspection agency to have the goods
inspected. The party requesting such inspection
shall bear the cost thereof but
is entitled to recover the same from the party causing the damage.
Article 84 The carrier and the consignee shall mutually provide
reasonable facilities for the survey and inspection stipulated in Articles 81
and 83 of this Code.
Article 85 Where the goods have been delivered by the actual carrier,
the notice in writing given by the consignee to the actual carrier under
Article 81 of this Code shall have the same effect as that given to the
carrier, and that given to the carrier shall have the same
effect as that given
to the actual carrier.
Article 86 If the goods were not taken delivery of at the port of
discharge or if the consignee has delayed or refused the taking delivery of
the
goods, the Master may discharge the goods into warehouses or other appropriate
places, and any expenses or risks arising therefrom
shall be borne by the
consignee.
Article 87 If the freight, contribution in general average, demurrage
to be paid to the carrier and other necessary charges paid by the carrier
on
behalf of the owner of the goods as well as other charges to be paid to the
carrier have not been paid in full, nor has appropriate
security been given,
the carrier may have a lien, to a reasonable extent, on the goods.
Article 88 If the goods under lien in accordance with the provisions of
Article 87 of this Code have not been taken delivery of within 60 days
from the
next day of the ship's arrival at the port of discharge, the carrier may apply
to the court for an order on selling the
goods by auction; where the goods are
perishable or the expenses for keeping such goods would exceed their value, the
carrier may
apply for an earlier sale by auction.
The proceeds from the auction sale shall
be used to pay off the expenses for the storage and auction sale of the goods,
the freight
and other related charges to be paid to the carrier. If the
proceeds fall short of such expenses, the carrier is entitled to claim
the
difference from the shipper, whereas any amount in surplus shall be refunded to
the shipper. If there is no way to make the refund
and such surplus amount has
not been claimed at the end of one full year after the auction sale, it shall
go to the State Treasury.
Section
6
Cancellation
of Contract
Article 89 The shipper may request the cancellation of the contract of
carriage of goods by sea before the ship sails from the port of loading.
However, except as otherwise provided for in the contract, the shipper shall in
this case pay half of the agreed amount of freight;
if the goods have already
been loaded on board, the shipper shall bear the expenses for the loading and
discharge and other related
charges.
Article 90 Either the carrier or the shipper may request the
cancellation of the contract and neither shall be liable to the other if, due to
force majeure or other causes not attributable to the fault of the carrier or
the shipper, the contract could not be performed prior
to the ship's sailing
from its port of loading. If the freight has already been paid, it shall be
refunded to the shipper, and, if
the goods have already been loaded on board,
the loading/discharge expenses shall be borne by the shipper. If a bill of
lading has
already been issued, it shall be returned by the shipper to the
carrier.
Article 91 If, due to force majeure or any other causes not
attributable to the fault of the carrier or the shipper, the ship could not
discharge
its goods at the port of destination as provided for in the contract
of carriage, unless the contract provides otherwise, the Master
shall be
entitled to discharge the goods at a safe port or place near the port of
destination and the contract of carriage shall
be deemed to have been
fulfilled.
In deciding the discharge of the goods,
the Master shall inform the
shipper or the consignee and shall take the interests of the shipper or the
consignee into consideration.
Section
7
Special
Provisions Regarding Voyage Charter Party
Article 92 A voyage charter party is a charter party under which the
shipowner charters out and the charterer charters in the whole or part of
the ship's
space for the carriage by sea of the intended goods from one port to another
and the charterer pays the agreed amount
of freight.
Article 93 A voyage charter party shall mainly contain, inter
alia, name of the shipowner, name of the charterer, name and nationality of the
ship, its bale or grain capacity, description of the goods to be loaded, port
of loading, port of destination, laydays, time for
loading and discharge,
payment of freight, demurrage, dispatch and other relevant matters.
Article 94 The provisions in Article 47 and Article 49 of this Code
shall apply to the shipowner under voyage charter party.
The other provisions in this Chapter
regarding the rights and obligations of the parties to the contract shall apply
to the shipowner
and the charterer under voyage charter only in the absence of
relevant provisions or in the absence of provisions differing therefrom
in the
voyage charter.
Article 95 Where the holder of the bill of lading is not the charterer
in the case of a bill of lading issued under a voyage charter, the rights
and
obligations of the carrier and the holder of the bill of lading shall be
governed by the clauses of the bill of lading. However,
if the clauses of the
voyage charter party are incorporated into the bill of lading, the relevant
clauses of the voyage charter party
shall apply.
Article 96 The shipowner shall provide the intended ship. The intended
ship may be substituted with the consent of the charterer. However, if
the ship
substituted does not meet the requirements of the charter party, the charterer
may reject the ship or cancel the charter. Should any damage or loss occur to the charterer as a result
of the shipowner's failure in providing the intended ship due to his
fault, the
shipowner shall be liable for compensation.
Article 97 If the shipowner has failed to provide the ship within the
laydays fixed in the charter, the charterer is entitled to cancel the charter
party. However, if the shipowner had notified the charterer of the delay of the
ship and the expected date of its arrival at the
port of loading, the charterer
shall notify the shipowner whether to cancel the charter within 48 hours of the
receipt of the shipowner's
notification.
Where the charterer has suffered losses as
a result of the delay in providing the ship due to the fault of the shipowner,
the shipowner
shall be liable for compensation .
Article 98 Under a voyage charter, the time for loading and discharge
and the way of calculation thereof, as well as the rate of demurrage that
would
incur after the expiration of the laytime and the rate of dispatch money to be
paid as a result of the completion of loading
or discharge ahead of schedule,
shall be fixed by the shipowner and the charterer upon mutual agreement.
Article 99 The charterer may sublet the ship he chartered, but the
rights and obligations under the head charter shall not be affected.
Article 100 The charterer shall provide the intended goods, but he may
replace the goods with the consent of the shipowner. However, if the goods
replaced are detrimental to the interests of the shipowner, the shipowner shall
be entitled to reject such goods and cancel the charter.
Where the shipowner has suffered losses as
a result of the failure of the charterer in providing the intended goods, the
charterer
shall be liable for compensation.
Article 101 The shipowner shall discharge the goods at the port of
discharge specified in the charter party. Where the charter party contains
a
clause allowing the choice of the port of discharge by the charterer, the
Master may choose one from among the agreed picked ports
to discharge the
goods, in case the charterer did not, as agreed in the charter, instruct in
time as to the port chosen for discharging
the goods. Where the charterer did
not instruct in time as to the chosen port of discharge, as agreed in the
charter, and the shipowner
suffered losses thereby, the charterer shall be
liable for compensation; where the
charterer has suffered losses as a result of the shipowner's arbitrary choice
of a port to discharge the goods, in disregard
of the provisions in the
relevant charter, the shipowner shall be liable for compensation.
Section
8
Special
Provisions Regarding Multimodal Transport Contract
Article 102 A multimodal transport contract as referred to in this Code
means a contract under which the multimodal transport operator undertakes
to
transport the goods, against the payment of freight for the entire transport,
from the place where the goods were received in
his charge to the destination
and to deliver them to the consignee by two or more different modes of
transport, one of which being
sea carriage.
The multimodal transport operator as
referred to in the preceding paragraph means the person who has entered into a
multimodal transport
contract with the shipper either by himself or by another
person acting on his behalf.
Article 103 The responsibility of the multimodal transport operator with
respect to the goods under multimodal transport contract covers the period
from
the time he takes the goods in his
charge to the time of their
delivery.
Article 104 The multimodal transport operator shall be responsible for
the performance of the multimodal transport contract or the procurement
of the
performance therefore, and shall be responsible for the entire transport.
The multimodal transport operator may
enter into separate contracts with the carriers of the different modes defining
their responsibilities
with regard to the different sections of the transport
under the multimodal transport contracts. However, such separate contracts
shall not affect the responsibility of the multimodal transport operator with
respect to the entire transport.
Article 105 If loss of or damage to the goods has occurred in a certain
section of the transport, the provisions of the relevant laws and regulations
governing that specific section of the multimodal transport shall be applicable
to matters concerning the liability of the multimodal
transport operator and
the limitation thereof.
Article 106 If the section of transport in which the loss of or damage
to the goods occurred could not be ascertained, the multimodal transport
operator
shall be liable for compensation in accordance with the stipulations regarding
the carrier's liability and the limitation
thereof as set out in this Chapter.
Chapter
V
Contract
of Carriage of Passengers by Sea
Article 107 A contract of carriage of passengers by sea is a contract
whereby the carrier undertakes to carry passengers and their luggage by
sea
from one port to another by ships
suitable for that purpose against payment of fare by the passengers.
Article 108 For the purposes of this Chapter:
(1) "Carrier" means the person
by whom or in whose name a contract of carriage of passengers by sea has been
entered into
with the passengers;
(2) "Actual carrier" means the
person by whom the whole or part of the carriage of passengers has been
performed as entrusted
by the carrier, including those engaged in such carriage
under a sub-contract.
(3) "Passenger" means a person
carried under a contract of carriage of passengers by sea. With the consent of
the carrier,
a person supervising the carriage of goods aboard a ship covered
by a contract of carriage of goods is regarded as a passenger;
(4) "Luggage" means any article
or vehicle shipped by the carrier under the contract of carriage of passengers
by sea, with
the exception of live
animals.
(5) "Cabin luggage" means the
luggage which the passenger has in his cabin or is otherwise in his possession,
custody or
control.
Article 109 The provisions regarding the responsibilities of the carrier
as contained in this Chapter shall be applicable to the actual carrier,
and the
provisions regarding the responsibilities of the servant or agent of the
carrier as contained in this Chapter shall be applicable
to the servant or
agent of the actual carrier.
Article 110 The passage ticket serves as an evidence that a contract of
carriage of passengers by sea has been entered into.
Article 111 The period of carriage for the carriage of passengers by sea
commences from the time of embarkation of the passengers and terminates
at the
time of their disembarkation, including the period during which the passengers
are transported by water from land to the ship
or vice versa , if such cost of
transport is included in the fare. However, the period of carriage does not
include the time when
the passengers are at a marine terminal or station or on
a quay or in or on any other port installations.
The period of carriage for the cabin
luggage of the passengers shall be the same as that stipulated in the preceding
paragraph. The
period of carriage for luggage other than the cabin luggage
commences from the time when the carrier or his servant or agent receives
it
into his charge and terminates at the time when the carrier or his servant or
agent redelivers it to the passengers.
Article 112 A passenger travelling without a ticket or taking a higher
class berth than booked or going beyond the distance paid for shall pay
for the
fare or the excess fare as required by relevant regulations, and the carrier
may, according to the relevant regulations,
charge additional fare. Should any
passenger refuse to pay, the Master is entitled to order him to disembark at a
suitable place
and the carrier has the right of recourse against him.
Article 113 No passenger may take on board or pack in their luggage
contraband goods or any article of
an inflammable, explosive, poisonous, corrosive or radioactive nature or other
dangerous goods that would
endanger the safety of life and property on board.
The carrier may have the contraband or
dangerous goods brought on board by the passenger or packed in his luggage in
breach of the
provisions of the preceding paragraph discharged, destroyed or
rendered innocuous at any time and at any place or sent over to the
appropriate
authorities, without being liable for compensation.
The passenger shall be liable for
compensation if any loss or damage occurs as a result of his breach of the provisions of
paragraph 1 of this Article.
Article 114 During the period of carriage of the passengers and their
luggage as provided for in Article 111 of this Code, the carrier shall be
liable for the death of or
personal injury to passengers or the loss of or damage to their luggage
resulting from accidents caused by the fault
of the carrier or his servant or
agent committed within the scope of his employment or agency.
The claimant shall bear the burden of
proof regarding the fault of the carrier or his servant or agent, with the
exception, however,
of the circumstances specified in paragraphs 3 and 4 of this
Article.
If the death of or personal injury to the
passengers or loss of or damage to the passengers' cabin luggage occurred as a
result of
shipwreck, collision, stranding, explosion, ire or the defect of the
ship, it shall be presumed that the carrier or his servant or
agent has
committed a fault, unless proof to the contrary has been given by the carrier
or his servant or agent.
As to any loss of or damage to the luggage
other than the passenger's cabin luggage, unless the carrier or his servant or
agent proves
to the contrary, it shall be presumed that the carrier or his
servant or agent has committed a fault, no matter how the loss or damage
was
caused.
Article 115 If it is proved by the carrier that the death of or personal
injury to the passenger or the loss of or damage to his luggage was caused
by
the fault of the passenger himself or the faults of the carrier and the
passenger combined, the carrier's liability may be exonerated
or appropriately
mitigated.
If it is proved by the carrier that the death
of or personal injury to the passenger or the loss of or damage to the
passenger's luggage
was intentionally caused by the passenger himself, or the
death or personal injury was due to the health condition of his, the carrier
shall not be liable therefore.
Article 116 The carrier shall not be liable for any loss of or damage to
the monies, gold, silver, jewellery, negotiable securities or other valuables
of the passengers.
If the passenger has entrusted the
above-mentioned valuables to the safe-keeping of the carrier under an agreement
for that purpose,
the carrier shall be liable for compensation in accordance
with the provisions of Article 117 of this Code. Where the limitation
of
liability agreed upon between the
carrier and the passenger in writing is higher than that set out in Article 117 of this Code, the carrier shall make the compensation
in accordance with that higher amount.
Article 117 Except the circumstances specified in paragraph 4 of this
Article, the limitation of liability of the carrier under each carriage
of
passengers by sea shall be governed by the following:
(1) For death of or personal injury to
the passenger: not exceeding
46,666 Units of Account per passenger;
(2) For loss of or damage to the passengers'
cabin luggage: not exceeding 833 Units of Account per passenger;
(3) For loss of or damage to the
passengers' vehicles including the luggage carried therein: not exceeding 3,333
Units of Account
per vehicle;
(4) For loss of or damage to luggage other
than those described in sub-paragraphs (2) and (3) above: not exceeding 1,200
Units of
Account per passenger.
An agreement may be reached between the
carrier and the passengers with respect to the deductibles applicable to the compensation for loss
of or damage to the passengers' vehicles and luggage other than their vehicles. However, the deductible with
respect to the loss of or damage to the passengers' vehicles shall not exceed
117 Units of
Account per vehicle, whereas the deductible for the loss of or
damage to the luggage other than the vehicle shall not exceed 13 Units
of
Account per piece of luggage per passenger. In calculating the amount of
compensation for the loss of or damage to the passenger's
vehicle or the
luggage other than the vehicle, deduction shall be made of the agreed
deductibles the carrier is entitled to.
A higher limitation of liability than that
set out in sub-paragraph (1) above may be agreed upon between the carrier and
the passenger
in writing.
The limitation of liability of the carrier
with respect to the carriage of passengers by sea between the ports of the
People's Republic
of China shall be fixed by the competent authorities of
transport and communications under the State Council and implemented after
its
being submitted to and approved by the State Council.
Article 118 If it is proved that the death of or personal injury to the
passenger or the loss of or damage to the passenger's luggage resulted
from an
act or omission of the carrier done with the intent to cause such loss or
damage or recklessly and with knowledge that such
death or personal injury or
such loss or damage would probably result ,the carrier shall not invoke the provisions regarding the
limitation of liability contained in Articles 116 and 117 of this Code.
If it is proved that the death of or
personal injury to the passenger or the loss of or damage to the passenger's
luggage resulted
from an act or omission of the servant or agent of the carrier
done with the intent to cause such loss or damage or recklessly and
with
knowledge that such death or personal injury or such loss or damage would
probably result, the servant or agent of the carrier
shall not invoke the provisions regarding the
limitation of liability contained in Articles 116 and 117 of this Code.
Article 119 In case of apparent damage to the luggage, the passenger
shall notify the carrier or his servant or agent in writing according to
the
following:
(1) Notice with respect to cabin luggage
shall be made before or at the time of his embarkation;
(2) Notice regarding luggage other than
cabin luggage shall be made before or at the time of redelivery thereof.
If the damage to the luggage is not
apparent and it is difficult for the passenger to discover such damage at the
time of his disembarkation
or of the redelivery of the luggage, or if the
luggage has been lost, the passenger shall notify the carrier or his servant or
agent
in writing within 15 days from the next day of disembarkation of the
passenger or of the redelivery of the luggage.
If the passenger fails to send in the
notice in writing in time in accordance with the provisions of sub-paragraphs
(1) and (2) of
this Article, it shall be presumed that the luggage has been
received undamaged, unless proof to the contrary is made.
Where the luggage has been jointly
surveyed or inspected by the passenger and the carrier at the time of
redelivery thereof, the above-mentioned
notice need not be given.
Article 120 With regard to the claims made to the carrier's servant or
agent, such servant or agent shall be entitled to invoke the provisions
regarding defence and limitation of liability contained in Articles 115,116 and
117 of this Code if such servant or agent proves
that his act or omission was
within the scope of his employment or agency.
Article 121 Where the performance of the carriage of passengers or part
thereof has been entrusted by the carrier to an actual carrier, the carrier
shall, as stipulated in this Chapter, remain liable for the entire carriage.
Where the carriage is performed by the actual carrier,
the carrier shall be liable for the act or omission of
the actual carrier or the act or omission of his servant or agent within the scope of his employment
or agency.
Article 122 Any special agreement under which the carrier assumes
obligations not provided for in this Chapter or waives the rights conferred
by this
Chapter shall be binding upon the actual carrier where the actual carrier has
expressly agreed in writing to the contents
thereof. Such a special agreement
shall be binding upon the carrier whether the actual carrier has agreed to its
contents or not.
Article 123 Where both the carrier and the actual carrier are liable for
compensation, they shall be liable jointly and severally within the scope
of
such liability.
Article 124 Where separate claims have been brought against the carrier,
the actual carrier and their servants or agents with respect to the death
of or
personal injury to the passengers or the loss of or damage to their luggage,
the aggregate amount of compensation shall not
be in excess of the limitation
prescribed in Article 117 of this Code.
Article 125 The provisions of Articles 121 through 124 of this Code
shall not affect the right of recourse between the carrier and the actual
carrier.
Article 126 Any of the following clauses contained in a contract of
carriage of passengers by sea shall be null and void:
(1) Any clause that exonerates the
statutory responsibility of the carrier in respect of the passenger;
(2) Any clause that reduces the limitation
of liability of the carrier as contained in this Chapter;
(3) Any clause that contains provisions
contrary to those of this Chapter concerning burden of proof; and
(4) Any clause that restricts the right of
claim of the passenger.
The nullity and voidness of the clauses
set out in the preceding paragraph shall not prejudice the validity of the
other clauses of
the contract.
Chapter
VI
Charter
Parties
Section
1
Basic
Principles
Article 127 The provisions concerning the rights and obligations of the
shipowner and the charterer in this Chapter shall apply only when there
are no
stipulations or no different stipulations in this regard in the charter party.
Article 128 Charter parties including time charter parties and bareboat
charter parties shall be concluded in writing.
Section
2
Time
Charter Party
Article 129 A time charter party is a contract under which the shipowner
provides a designated manned ship to the charterer, and the charterer
employs
the ship during the contractual period for the agreed service against payment
of hire.
Article 130 A time charter party mainly contains the name of the
shipowner, the name of the charterer; the name, nationality, class, tonnage,
capacity, speed and fuel consumption of the ship; the trading area; the agreed
service, the contractual period, the time, place and
conditions of delivery and
redelivery of the ship; the hire and the way of its payment and other relevant
matters.
Article 131 The shipowner shall deliver the ship within the time agreed
upon in the charter party.
Where the shipowner acts against the
provisions of the preceding paragraph, the charterer is entitled to cancel the
charter. However,
if the shipowner has notified the charterer of the
anticipated delay in delivery and has given an estimated time of arrival of the
ship at the port of delivery, the charterer shall notify the shipowner, within
48 hours of the receipt of such notice from the shipowner,
of his decision
whether to cancel the charter or not.
The shipowner shall be liable for the
charterer's loss resulting from the delay in delivery of the ship due to the
shipowner's fault.
Article 132 At the time of delivery, the shipowner shall exercise due
diligence to make the ship seaworthy. The ship delivered shall be fit for
the
intended service.
Where the shipowner acts against the
provisions in the preceding paragraph, the charterer shall be entitled to
cancel the charter
and claim any losses resulting therefrom.
Article 133 During the charter period, if the ship is found at variance
with the seaworthiness or the other conditions agreed upon in the charter, the shipowner shall take all
reasonable measures to have them restored as soon as possible.
Where the ship has not been operated
normally for 24 consecutive hours due to its failure to maintain the
seaworthiness or the other
conditions as agreed upon, the charterer shall not
pay the hire for the operating time so lost, unless such failure was caused by
the charterer.
Article 134 The charterer shall guarantee that the ship shall be
employed in the agreed maritime transport
between the safe ports or places within the trading area agreed upon.
If the charterer acts against the
provisions of the preceding paragraph, the shipowner is entitled to cancel the
charter and claim
any losses resulting therefrom.
Article 135 The charterer shall guarantee that the ship shall be
employed to carry the lawful merchandise agreed.
Where the ship is to be employed by the
charterer to carry live animals or dangerous goods, a prior consent of the
shipowner is required.
The charterer shall be liable for any loss
of the shipowner resulting from the charterer's violation of the provisions of
paragraph
1 or paragraph 2 of this Article.
Article 136 The charterer shall be entitled to give the Master
instructions with respect to the operation of the ship. However, such
instructions
shall not be inconsistent with the stipulations of the time
charter.
Article 137 The charterer may sublet the ship under charter, but he
shall notify the shipowner of the sublet
in time. The rights and obligations agreed upon in the head charter
shall not be affected by the sub-charter.
Article 138 Where the ownership of the ship under charter has been
transferred by the shipowner, the rights and obligations agreed upon under
the
original charter shall not be affected. However, the shipowner shall inform the
charterer thereof in time. After such transfer,
the transferee and the
charterer shall continue to perform the original charter.
Article 139 Should the ship be engaged in
salvage operations during the charter period, the charterer shall be entitled
to half of
the amount of the payment for salvage operations after deducting
therefrom the salvage expenses, compensation for damage, the portion
due to
crew members and other relevant costs.
Article 140 The charterer shall pay the hire as agreed upon in the
charter. Where the charterer fails to pay the hire as agreed upon, the
shipowner
shall be entitled to cancel the charter party and claim any losses resulting
therefrom.
Article 141 In case the charterer fails to pay the hire or other sums of
money as agreed upon in the charter, the shipowner shall have a lien
on the
charterer's goods, other property on board and earnings from the sub-charter.
Article 142 When the charterer redelivers the ship to the shipowner, the
ship shall be in the same good order and condition as it was at the time
of
delivery, fair wear and tear excepted.
Where, upon redelivery, the ship fails to
remain in the same good order and condition as it was at the time of delivery,
the charterer
shall be responsible for rehabilitation or for compensation.
Article 143 If, on the basis of a reasonable calculation, a ship may be
able to complete its last voyage at around the time of redelivery specified
in
the charter and probably thereafter, the charterer is entitled to continue to
use the ship in order to complete that
voyage even if its time of redelivery will be overdue. During the
extended period, the charterer shall pay the hire at the rate fixed
by the charter,
and, if the current market rate of hire is higher than that specified in the
charter, the charterer shall pay the
hire at the current market rate.
Section
3
Bareboat
Charter Party
Article 144 A bareboat charter party is a charter party under which the
shipowner provides the charterer with an unmanned ship which the charterer
shall possess, employ and operate within an agreed period and for which the
charterer shall pay the shipowner the hire.
Article 145 A bareboat charter party mainly contains the name of the
shipowner and the name of the charterer; the name, nationality, class, tonnage
and capacity of the ship; the trading area, the employment of the ship and the
charter period; the time, place and condition of delivery
and redelivery; the
survey, maintenance and repair of the ship; the hire and its payment; the
insurance of the ship; the time and
condition for the termination of the
charter and other relevant matters.
Article 146 The shipowner shall deliver the ship and its certificates to
the charterer at the port or place and time as stipulated in the charter
party.
At the time of delivery, the shipowner shall exercise due diligence to make the
ship seaworthy. The ship delivered shall be
fit for the agreed service.
Where the shipowner acts against the
provisions of the preceding paragraph, the charterer shall be entitled to
cancel the charter
and claim any losses resulting therefrom.
Article 147 The charterer shall be responsible for the maintenance and
repair of the ship during the bareboat charter period.
Article 148 During the bareboat charter period, the ship shall be
insured, at the value agreed upon in
the charter and in the way consented to by the shipowner, by the charterer at his expense.
Article 149 During the bareboat charter
period, if the charterer's possession, employment or operation of the ship has
affected the
interests of the shipowner or caused any losses thereto, the
charterer shall be liable for eliminating the harmful effect or compensating
for the losses.
Should the ship be arrested due to any
disputes over its ownership or debts owed by the shipowner, the shipowner shall
guarantee that
the interest of the charterer is not affected. The shipowner
shall be liable for compensation for any losses suffered by the charterer
thereby.
Article 150 During the bareboat charter period, the charterer shall not assign the rights and obligations
stipulated in the charter or sublet the ship under bareboat charter without the
shipowners's
consent in writing.
Article 151 The shipowner shall not establish any mortgage of the ship
during the bareboat charter period without the prior consent in writing
by the
charterer.
Where the shipowner acts against the
provisions of the preceding paragraph and thereby causes losses to the
charterer, the shipowner
shall be liable for compensation.
Article 152 The charterer shall pay the hire as stipulated in the
charter. In default of payment by the charterer for seven consecutive days or
more after the time as agreed in the charter for such payment, the shipowner is
entitled to cancel the charter without prejudice
to any claim for the loss
arising from the charterer's default.
Should the ship be lost or missing,
payment of hire shall cease from
the day when the ship was lost or last heard of. Any hire paid in advance shall
be refunded in proportion.
Article 153 The provisions of Article 134, paragraph 1 of Article 135, Article 142 and Article 143 of this
Code shall be applicable to bareboat charter parties.
Article 154 The ownership of a ship under bareboat charter containing a
lease-purchase clause shall be transferred to the charterer when the charterer
has paid off the lease-purchase price to the shipowner as stipulated in the
charter.
Chapter
VII
Contract
of Sea Towage
Article 155 A contract of sea towage is a contract whereby the tugowner
undertakes to tow an object by sea with a tug from one place to another
and the
tow party pays the towage.
The provisions of this Chapter shall not
be applicable to the towage service rendered to ships within the port area.
Article 156 A contract of sea towage shall be made in writing. Its
contents shall mainly include name and address of the tugowner, name and
address
of the tow party, name and
main particulars of the tug and name and main particulars of the object to be
towed, horse power of the tug,
place of commencement of the towage and the destination, the date of
commencement of the towage, towage price and the
way of payment thereof, as
well as other relevant matters.
Article 157 The tugowner shall, before and at the beginning of the
towage, exercise due diligence to make the tug seaworthy and towworthy and
to properly
man the tug and equip it with gears and tow lines and to provide all other
necessary supplies and appliances for the
intended voyage.
The tow party shall, before and at the
beginning of the towage, make all necessary preparations therefore and shall
exercise due diligence
to make the object to be towed towworthy and shall give
a true account of the object to be towed and provide the certificate of
towworthiness
and other documents issued by the relevant survey and inspection
organizations.
Article 158 If before
the commencement of the towage
service, due to force majeure or other causes not attributable to the
fault of either party, the towage contract could not be performed, either party may cancel the contract
and neither shall be liable to the other. In such event, the towage price that
had already been
paid shall be returned to the tow party by the tugowner,
unless otherwise agreed upon in the towage contract.
Article 159 If after the commencement of the towage service, due to
force majeure or other causes not attributable to the fault of either party,
the towage contract could not be performed, either party may cancel the towage contract and neither
shall be liable to the other.
Article 160 Where the object towed could not reach its destination due
to force majeure or other causes not attributable to the fault of either
party,
unless the towage contract provides otherwise, the tugowner may deliver the
object towed to the tow party or its agent at
a place near the destination or
at a safe port or an anchorage chosen by the Master of the tug, and the
contract of towage shall
be deemed to have been fulfilled.
Article 161 Where the tow party fails to pay the towage price or other
reasonable expenses as agreed, the tugowner shall have a lien on the object
towed.
Article 162 In the course of the sea towage, if the damage suffered by
the tugowner or the tow party was caused by the fault of one of the parties,
the party in fault shall be liable for compensation. If the damage was caused
by the faults of both parties, both parties shall be
liable for compensation in
proportion to the extent of their respective faults.
Notwithstanding the provisions of the
preceding paragraph, the tugowner shall not be liable if he proves that the
damage suffered
by the tow party is due to one of the following causes:
(1) Fault of the Master or other crew
members of the tug or the pilot or other servants or agents of the tugowner in
the navigation
and management of the tug;
(2) Fault of the tug in saving or
attempting to save life or property at sea.
The provisions of this Article shall only
apply if and when there are no provisions or no different provisions in this
regard in the
sea towage contract.
Article 163 If death of or personal injury to a third party or damage to
property thereof has occurred during the sea towage due to the fault
of the
tugowner or the tow party, the tugowner and the tow party shall be liable
jointly and severally to that third party. Except
as otherwise provided for in
the towage contract, the party that has jointly and severally paid a
compensation in an amount exceeding
the proportion for which it is liable shall
have the right of recourse against the other party.
Article 164 Where a tugowner towing a barge owned or operated by him to
transport goods by sea from one port to another, it shall be deemed as
an act
of carriage of goods by sea.
Chapter
VIII
Collision
of Ships
Article 165 Collision of ships means an accident arising from the
touching of ships at sea or in other navigable waters adjacent thereto.
Ships referred to in the preceding
paragraph shall include those non-military or public service ships or craft
that collide with the
ships mentioned in Article 3 of this Code.
Article 166 After a collision, the Master of each of the ships in
collision is bound, so far as he can do so without serious danger to his ship
and persons on board to render assistance to the other ship and persons on
board.
The Masters of each of the ships in
collision is likewise bound so far as possible to make known to the other ship
the name of his
ship, its port of registry, port of departure and port of
destination.
Article 167 Neither of the parties shall be liable to the other if the
collision is caused by force majeure or other causes not attributable to
the
fault of either party or if the cause thereof is left in doubt.
Article 168 If the collision is caused by the fault of one of the ships,
the one in fault shall be liable therefore.
Article 169 If the colliding ships are all in fault, each ship shall be
liable in proportion to the extent of its fault; if the respective faults
are
equal in proportion or it is impossible to determine the extent of the
proportion of the respective faults, the liability of
the colliding ships shall
be apportioned equally.
The ships in fault shall be liable for the
damage to the ship, the goods and other property on board pursuant to the
proportions prescribed
in the preceding paragraph. Where damage is caused to
the property of a third party, the liability for compensation of any of the
colliding ships shall not exceed the proportion it shall bear.
If the ships in fault have caused loss of
life or personal injury to a third party, they shall be jointly and severally
liable therefore.
If a ship has paid an amount of compensation in excess of the
proportion prescribed in paragraph 1 of this Article, it shall have
the right
of recourse against the other ship(s) in fault.
Article 170 Where a ship has caused damage
to another ship and persons, goods or other property on board that ship, either
by the
execution or non-execution of a maneuvre or by the non-observance of
navigation regulations, even if no collision has actually occurred,
the
provisions of this Chapter shall apply.
Chapter
IX
Salvage
at Sea
Article 171 The provisions of this Chapter shall apply to salvage
operations rendered at sea or any other navigable waters adjacent thereto to
ships
and other property in distress.
Article 172 For the purposes of this Chapter:
(1)"Ship" means any ship
referred to in Article 3 of this Code and any other non-military, public
service ship or craft
that has been involved in a salvage operation therewith;
(2)"Property" means any property
not permanently and intentionally attached to the shoreline and includes
freight at risk;
(3) "Payment" means any reward,
remuneration or compensation for salvage operations to be paid by the salved
party to the
salvor pursuant to the provisions of this Chapter.
Article 173 The provisions of this Chapter shall not apply to fixed or
floating platforms or mobile offshore drilling units when such platforms
or
units are on location engaged in the exploration, exploitation or production of
sea-bed mineral resources.
Article 174 Every Master is bound, so far as he can do so without
serious danger to his ship and persons on board, to render assistance to any
person
in danger of being lost at sea.
Article 175 A contract for salvage operations at sea is concluded when
an agreement has been reached between the salvor and the salved party regarding
the salvage operations to be undertaken.
The Master of the ship in distress shall
have the authority to conclude a contract for salvage operations on behalf of
the shipowner.
The Master of the ship in distress or its owner shall have the
authority to conclude a contract for salvage operations on behalf
of the owner
of the property on board.
Article 176 The salvage contract may be modified by a judgment of the
court which has entertained the suit brought by either party, or modified
by an
award of the arbitration organization to which the dispute has been submitted
for arbitration upon the agreement of the parties,
under any of the following
circumstances:
(1) The contract has been entered into
under undue influence or the influence of danger and its terms are obviously
inequitable;
(2) The payment under the contract is in
an excessive degree too large or too small for the services actually rendered.
Article 177 During the salvage operation, the salvor shall owe a
duty to the salved party to:
(1) carry out the salvage operation with
due care;
(2) exercise due care to prevent or
minimize the pollution damage to the environment;
(3) seek the assistance of other salvors
where reasonably necessary;
(4) accept the reasonable request of the
salved party to seek the participation in the salvage operation of other
salvors. However,
if the request is not well-founded, the amount of payment due
to the original salvor shall not be affected.
Article 178 During the salvage operation, the party salved is under an
obligation to the salvor to:
(1) cooperate fully with the salvor;
(2) exercise due care to prevent or
minimize the pollution damage to the environment;
(3) promptly accept the request of the
salvor to take delivery of the ship or property salved when such ship or
property has been
brought to a place of safety.
Article 179 Where the salvage operations rendered to the
distressed ship and other property have had a useful result, the salvor shall
be entitled
to a reward. Except as otherwise provided for by Article 182 of
this Code or by other laws or the salvage contract, the salvor shall
not be
entitled to the payment if the
salvage operations have had no useful result.
Article 180 The reward shall be fixed with a view to encouraging salvage
operations, taking into full account the following criteria:
(1) Value of the ship and other property
salved;
(2) Skill and efforts of the salvors in
preventing or minimizing the pollution damage to the environment;
(3) Measure of success obtained by the
salvors;
(4) Nature and extent of the danger;
(5) Skill and efforts of the salvors in
salving the ship, other property and life;
(6) Time used and expenses and losses
incurred by the salvors;
(7) Risk of liability and other risks run
by the salvors or their equipment;
(8) Promptness of the salvage services
rendered by the salvors;
(9) Availability and use of ships or other
equipment intended for salvage operations;
(10) State of readiness and efficiency of
the salvor's equipment and the value thereof.
The reward shall not exceed the value of
the ship and other property salved.
Article 181 The salved value of the ship and other property means the
assessed value of the ship and other property salved or the proceeds of
the
sale thereof, after deduction of the relevant taxes and customs dues,
quarantine expenses, inspection charges as well as expenses
incurred in
connection with the discharge, storage, assessment of the value and the sale
thereof.
The value prescribed in the preceding
paragraph does not include the value of the salved personal belongings of the
crew and that
of the cabin luggage of the passengers.
Article 182 If the salvor has carried out
the salvage operations in respect of a ship which by itself or its goods
threatened pollution
damage to the environment and has failed to earn a reward
under Article 180 of this Code at least equivalent to the special compensation
assessable in accordance with this Article, he shall be entitled to special
compensation from the owner of that ship equivalent to
his expenses as herein
defined.
If the salvor has carried out the salvage
operations prescribed in the preceding paragraph and has prevented or minimized
pollution
damage to the environment, the special compensation payable by the
owner to the salvor under paragraph 1 of this Article may be increased
by an
amount up to a maximum of 30% of the expenses incurred by the salvor. The court
which has entertained the suit or the arbitration
organization may, if it deems
fair and just and taking into consideration the provisions of paragraph 1 of
Article 180 of this Code,
render a judgment or an award further increasing the
amount of such special compensation, but in no event shall the total increase
be more than 100% of the expenses incurred by the salvor.
The salvor's expenses referred to in this
Article means the salvor's out-of-pocket expenses reasonably incurred in the
salvage operation
and the reasonable expenses for the equipment and personnel
actually used in the salvage operation. In determining the salvor's expenses,
the provisions of sub-paragraphs (8), (9) and (10) of paragraph 1 of Article
180 of this Code shall be taken into consideration.
Under all circumstances, the total special
compensation provided for in this Article shall be paid only if such
compensation is greater
than the reward recoverable by the salvor under Article
180 of this Code, and the amount to be paid shall be the difference between
the
special compensation and the reward.
If the salvor has been negligent and has
thereby failed to prevent or minimize the pollution damage to the environment,
the salvor
may be totally or partly deprived of the right to the special
compensation.
Nothing in this Article shall affect the
right of recourse on the part of the shipowner against any other parties
salved.
Article 183 The salvage reward shall be paid by the owners of the salved
ship and other property in accordance with the respective proportions
which the
salved values of the ship and other property bear to the total salved value.
Article 184 The distribution of salvage reward among the salvors taking
part in the same salvage operation shall be made by agreement among such
salvors
on the basis of the criteria set out in Article 180 of this Code; failing such
agreement, the matter may be brought before
the court hearing the case for
judgment, or, upon the agreement of the parties, submitted to the arbitration
organization for an
award.
Article 185 The salvors of human life may not demand any remuneration from
those whose lives are saved. However, salvors of human life are entitled
to a
fair share of the payment awarded to the salvor for salving the ship or other
property or for preventing or minimizing the pollution
damage to the
environment.
Article 186 The following salvage operations shall not be entitled to
remuneration:
(1) The salvage operation is carried out
as a duty to normally perform a towage contract or other service contract, with
the exception,
however, of providing special services beyond the performance of
the above said duty.
(2) The salvage operation is carried out
in spite of the express and reasonable prohibition on the part of the Master of
the ship
in distress, the owner of the ship in question and the owner of the
other property.
Article 187 Where the salvage operations have become necessary or more
difficult due to the fault of the salvor or where the salvor has committed
fraud or other dishonest conduct,
the salvor shall be deprived of the whole or part of the payment payable
to him.
Article 188 After the completion of the salvage operation, the party
salved shall, at the request of the salvor, provide satisfactory security
for
salvage reward and other charges.
Without prejudice to the provisions of the
preceding paragraph, the owner of the ship salved shall, before the release of
the goods,
make best endeavours to cause the owners of the property salved to
provide satisfactory security for the share of the payment that they ought to bear.
Without the consent of the salvor, the
ship or other property salved shall not be removed from the port or place at
which they first
arrived after the completion of the salvage operation, until
satisfactory security has been provided with respect to the ship or
other
property salved, as demanded by the salvor.
Article 189 The court or the arbitration organization handling the
salvor's claim for payment may, in light of the specific circumstances and
under
fair and just terms, decide or make an award ordering the party salved to pay
on account an appropriate amount to the salvor.
On the basis of the payment on account
made by the party salved in accordance with the provisions of the preceding
paragraph, the
security provided under Article 188 of this Code shall be
reduced accordingly.
Article 190 If the party salved has neither made the payment nor
provided satisfactory security for the ship and other property salved after 90
days of the salvage, the salvor may apply to the court for an order on forced
sale by auction. With respect to the ship or the property
salved that cannot be
kept or cannot be properly kept, or the storage charge to be incurred may
exceed its value, the salvor may
apply for an earlier forced sale by auction.
The proceeds of the sale shall, after
deduction of the expenses incurred for the storage and sale, be used for the
payment in accordance
with the provisions of this Code. The remainder, if any,
shall be returned to the party salved, and, if there is no way to return
the
remainder or if the remainder has not been claimed after one year of the forced
sale, it shall go to the State treasury. In case
of any deficiency, the salvor
has the right of recourse against the party salved.
Article 191 The provisions of this Chapter shall apply to the salvor's
right to the payment for the salvage operations carried out between the
ships
of the same owner.
Article 192 With respect to the salvage operations performed or
controlled by the relevant competent authorities of the State, the salvors
shall
be entitled to avail themselves of the rights and remedies provided for
in this Chapter in respect of salvage operations.
Chapter
X
General
Average
Article 193 General average means the extraordinary sacrifice or expenditure
intentionally and reasonably made or incurred for the common safety
for the
purpose of preserving from peril the ship, goods or other property involved in
a common maritime adventure.
Loss or damage sustained by the ship or
goods through delay, whether on the voyage or subsequently, such as demurrage
and loss of
market as well as other indirect losses, shall not be admitted as
general average.
Article 194 When a ship, after having been damaged in consequence of
accident, sacrifice or other extraordinary circumstances, shall have entered a port or place of
refuge or returned to its port or place of loading to effect repairs which are
necessary for
the safe prosecution of the voyage, then the port charges paid,
the wages and maintenance of the crew incurred and the fuel and stores
consumed
during the extra period of detention in such port or place, as well as the loss
or damage and charges arising from the discharge,
storage, reloading and
handling of the goods, fuel, stores and other property on board in order to
have the repairs done shall be
allowed as general average.
Article 195 Any extra expense incurred in place of another expense which
would have been allowed as general average shall be deemed to be general
average and so allowed, but the amount of such expense incurred shall not be in
excess of the general average expense avoided.
Article 196 The onus of proof shall be upon the party claiming in
general average to show that the loss or expense claimed is properly allowable
as general average.
Article 197 Rights to contribution in general average shall not be
affected, though the event which gave rise to the sacrifice or expenditure
may
have been due to the fault of one of the parties to the adventure. However, this
shall not prejudice any remedies or defences
which may be open against or to
that party in respect of such fault.
Article 198 The amounts of sacrifice of the ship, the goods and the
freight shall be respectively determined as follows:
(1) The amount of sacrifice of the ship
shall be calculated on the basis of the repair cost of the ship actually paid,
from which
any reasonable deduction in respect of "new for old" being
made. Where the ship has not been repaired after the sacrifice,
the amount of
sacrifice thereof shall be calculated on the basis of the reasonable reduced
value of ship after the general average
sacrifice. Such amount shall not exceed
the estimated cost of repair.
Where the ship is an actual total loss or
where the cost of repair would exceed the value of the ship after the repair,
the amount
of sacrifice of the ship shall be calculated on the basis
of the estimated sound value of the ship,
less the estimated cost of repair not allowable as general average, as well as
the value
of the ship after the damage.
(2) The amount of sacrifice of the goods
already lost shall be calculated on the basis of the value of the goods at the
time of shipment
plus insurance and freight, from which the freight that need
not be paid due to the sacrifice made being deducted. For the damaged
goods
that had already been sold before an agreement was reached on the extent of the
damage sustained, the amount of sacrifice thereof
shall be calculated on the
basis of the difference between the value of the goods at the time of shipment
plus insurance and freight,
and the net proceeds of the goods so sold.
(3) The amount of sacrifice of the freight
shall be calculated on the basis of the amount of loss of freight on account of
the sacrifice
of the goods, from which the operating expenses that ought to be
paid in order to earn such freight but need not be paid because
of the
sacrifice shall be deducted.
Article 199 The contribution in general average shall be made in
proportion to the contributory values of the respective beneficiaries.
The contributory value in general average
by the ship, goods and freight shall be determined as follows:
(1) The contributory value of the ship
shall be calculated on the basis of the sound value of the ship at the place
where the voyage
ends, from which any damage that does not come under general
average sacrifice being deducted; alternately, the actual value of the
ship at
the place where the voyage ends, plus the amount of general average sacrifice.
(2) The contributory value of the goods
shall be calculated on the basis of the value of the goods at the time of
shipment plus insurance
and freight, from which the damage that does not come
under the general average sacrifice and the carrier's freight at risk being
deducted. Where the goods had been sold before its arrival at the port of
destination, its value for contribution shall be the net
proceeds plus the
amount of general average sacrifice.
Passenger's luggage and personal
belongings shall not be included in the value for contribution.
(3) The Contributory value of freight
shall be calculated on the basis of the amount of freight at the risk of the
carrier and which
the carrier is entitled to collect at the end of the voyage,
less any expense incurred for the prosecution of the voyage after the
general
average, in order to earn the freight, plus the amount of general average
sacrifice.
Article 200 Goods undeclared or wrongfully declared shall be liable for
the contribution to general average, but the special sacrifice sustained
by
such goods shall not be allowed as general average.
Where the value of the goods has been
improperly declared at a value below its actual value, the contribution to
general average shall
be made on the basis of their actual value and, where a
general average sacrifice has occurred, the amount of sacrifice shall be
calculated on the basis of the declared value.
Article 201 Interest shall be allowed on general average sacrifice and
general average expenses paid on account. A commission shall be allowed
for the
general average expenses paid on account, except those for the wages and
maintenance of the crew and fuel and store consumed.
Article 202 The contributing parties shall provide security for general
average contribution at the request of the parties that have an interest
therein.
Where the security has been provided in
the form of cash deposits, such deposits shall be put in a bank by an average
adjuster in
the name of a trustee.
The provision, use and refund of the
deposits shall be without prejudice to the ultimate liability of the
contributing parties.
Article 203 The adjustment of general average shall be governed by the
average adjustment rules agreed upon in the relevant contract. In the absence
of such an agreement in the contract, the relevant provisions contained in this
Chapter shall apply.
Chapter
XI
Limitation
of Liability for Maritime Claims
Article 204 Shipowners and salvors may limit their liability in
accordance with the provisions of this Chapter for claims set out in Article
207
of this Code.
The shipowners referred to in the
preceding paragraph shall include the charterer and the operator of a ship.
Article 205 If the claims set out in Article 207 of this Code are not
made against shipowners or salvors themselves but against persons for whose
act, neglect or default the shipowners or salvors are responsible, such persons
may limit their liability in accordance with the
provisions of this Chapter.
Article 206 Where the assured may limit his liability in accordance with
the provisions of this Chapter, the insurer liable for the maritime claims
shall be entitled to the limitation of liability under this Chapter to the same
extent as the assured.
Article 207 Except as provided otherwise in Articles 208 and 209 of this
Code, with respect to the following maritime claims, the person liable
may
limit his liability in accordance with the provisions of this Chapter, whatever
the basis of liability may be:
(1) Claims in respect of loss of life or
personal injury or loss of or damage to property including damage to harbour
works, basins
and waterways and aids to navigation occurring on board or in
direct connection with the operation of the ship or with salvage operations,
as
well as consequential damages resulting therefrom;
(2) Claims in respect of loss resulting
from delay in delivery in the carriage of goods by sea or from delay in the
arrival of passengers
or their luggage;
(3) Claims in respect of other loss
resulting from infringement of rights other than contractual rights occurring
in direct connection
with the operation of the ship or salvage operations;
(4) Claims of a person other than the
person liable in respect of measures taken to avert or minimize loss for which
the person liable
may limit his liability in accordance with the provisions of
this Chapter, and further loss caused by such measures.
All the claims set out in the preceding
paragraph, whatever the way they are lodged, may be entitled to limitation of
liability. However,
with respect to the remuneration set out in sub-paragraph
(4) for which the person liable pays as agreed upon in the contract, in
relation to the obligation for payment, the person liable may not invoke the
provisions on limitation of liability of this Article.
Article 208 The provisions of this Chapter shall not be applicable to
the following claims:
(1) Claims for salvage payment or
contribution in general average;
(2) Claims for oil pollution damage under
the International Convention on Civil Liability for Oil Pollution Damage to
which the People's
Republic of China is a party;
(3) Claims for nuclear damage under the
International Convention on Limitation of Liability for Nuclear Damage to which
the People's
Republic of China is a party;
(4) Claims against the shipowner of a
nuclear ship for nuclear damage;
(5) Claims by the servants of the
shipowner or salvor, if under the law governing the contract of
employment, the shipowner or
salvor is not entitled to limit his liability or if he is by such law only
permitted to limit his liability to an
amount greater than that provided for in
this Chapter.
Article 209 A person liable shall not be entitled to limit his liability
in accordance with the provisions of this Chapter, if it is proved that
the
loss resulted from his act or omission done with the intent to cause such loss
or recklessly and with knowledge that
such loss would probably result.
Article 210 The limitation of liability for maritime claims, except as
otherwise provided for in Article 211 of this Code, shall be calculated
as
follows:
(1) In respect of claims for loss of life
or personal injury:
a) 333,000 Units of Account for a ship
with a gross tonnage ranging from 300 to 500 tons;
b) For a ship with a gross tonnage in
excess of 500 tons, the limitation under a) above shall be applicable to the
first 500 tons
and the following amounts in addition to that set out under a)
shall be applicable to the gross tonnage in excess of 500 tons:
For each ton from 501 to 3,000 tons: 500
Units of Account;
For each ton from 3,001 to 30,000 tons:
333 Units of Account;
For each ton from 30,001 to 70,000 tons:
250 Units of Account;
For each ton in excess of 70,000 tons: 167
Units of Account;
(2) In respect of claims other than that
for loss of life or personal injury:
a) 167,000 Units of Account for a ship
with a gross tonnage ranging from 300 to 500 tons;
b) For a ship with a gross tonnage in
excess of 500 tons, the limitation under a) above shall be applicable to the
first 500 tons,
and the following amounts in addition to that under a) shall be
applicable to the part in excess of 500 tons:
For each ton from 501 to 30,000 tons: 167
Units of Account;
For each ton from 30,001 to 70,000 tons:
125 Units of Account;
For each ton in excess of 70,000 tons: 83
Units of Account.
(3) Where the amount calculated in
accordance with sub-paragraph (1) above is insufficient for payment of claims
for loss of life
or personal injury set out therein in full, the amount
calculated in accordance with sub-paragraph (2) shall be available for payment
of the unpaid balance of claims under sub-paragraph (1), and such unpaid
balance shall rank rateably with claims set out under sub-paragraph
(2).
(4) However, without prejudice to the
right of claims for loss of life or personal injury under sub-paragraph (3),
claims in respect
of damage to harbour works, basins and waterways and aids to
navigation shall have priority over other claims under sub-paragraph
(2).
(5) The limitation of liability for any
salvor not operating from any ship or for any salvor operating solely on the
ship to, or in
respect of which, he is rendering salvage services, shall be
calculated according to a gross tonnage of 1,500 tons.
The limitation of liability for ships with
a gross tonnage not exceeding 300 tons and those engaging in transport services
between
the ports of the People's Republic of China as well as those for other
coastal works shall be worked out by the competent authorities
of transport and
communications under the State Council and implemented after its being
submitted to and approved by the State Council.
Article 211 In respect of claims for loss of life or personal injury to
passengers carried by sea, the limitation of liability of the shipowner
thereof
shall be an amount of 46,666 Units of Account multiplied by the number of passengers
which the ship is authorized to carry
according to the ship's relevant
certificate, but the maximum amount of compensation shall not exceed 25,000,000
Units of Account.
The limitation of liability for claims for
loss of life or personal injury to passengers carried by sea between the ports
of the People's
Republic of China shall be worked out by the competent
authorities of transport and communications under the State Council and
implemented
after its being submitted to and approved by the State Council.
Article 212 The limitation of liability under Articles 210 and 211 of
this Code shall apply to the aggregate of all claims that may arise on any
given
occasion against shipowners and salvors themselves, and any person for whose
act, neglect or fault the shipowners and the salvors
are responsible.
Article 213 Any person liable claiming the limitation of liability under
this Code may constitute a limitation fund with a court having jurisdiction.
The fund shall be constituted in the sum of such an amount set out respectively
in Articles 210 and 211, together with the interest
thereon from the date of
the occurrence giving rise to the liability until the date of the constitution
of the fund.
Article 214 Where a limitation fund has been constituted by a person
liable, any person having made a claim against the person liable may not
exercise any right against any assets of the person liable. Where any ship or
other property belonging to the person constituting
the fund has been arrested
or attached, or, where a security has been provided by such person, the court
shall order without delay the
release of the ship arrested or the property attached or the return of the
security provided.
Article 215 Where a person entitled to limitation of liability under the
provisions of this Chapter has a counter-claim against the claimant arising
out
of the same occurrence, their respective claims shall be set off against each
other and the provisions of this Chapter shall
only apply to the balance, if
any.
Chapter
XII
Contract
of Marine Insurance
Section
1
Basic
Principles
Article 216 A contract of marine insurance is a contract whereby the
insurer undertakes, as agreed, to indemnify the loss to the subject matter
insured and the liability of the insured caused by perils covered by the
insurance against the payment of an insurance premium by
the insured.
The covered perils referred to in the
preceding paragraph mean any maritime perils agreed upon between the insurer
and the insured,
including perils occurring in inland rivers or on land which
is related to a maritime adventure.
Article 217 A contract of marine insurance mainly includes:
(1) Name of the insurer;
(2) Name of the insured;
(3)
Subject matter insured;
(4) Insured value;
(5) Insured amount;
(6) Perils insured against and perils
excepted;
(7) Duration of insurance coverage;
(8) Insurance premium.
Article 218 The following items may come under the subject matter of
marine insurance:
(1)Ship;
(2) Cargo;
(3) Income from the operation of the ship
including freight, charter hire and passenger's fare;
(4) Expected profit on cargo;
(5) Crew's wages and other remuneration;
(6) Liabilities to a third person;
(7) Other property which may sustain loss
from a maritime peril and the liability and expenses arising therefrom.
The insurer may reinsure the insurance of
the subject matter enumerated in the preceding paragraph. Unless otherwise
agreed in the
contract, the original insured shall not be entitled to the
benefit of the reinsurance.
Article 219 The insurable value of the subject matter insured shall be
agreed upon between the insurer and the insured.
Where no insurable value has been agreed upon between the insurer and
the insured, the insurable value shall be calculated as follows:
(1) The insurable value of the ship shall
be the value of the ship at the time when the insurance liability commences,
being the total
value of the ship's hull, machinery, equipment, fuel, stores,
gear, provisions and fresh water on board as well as the insurance
premium;
(2) The insurable value of the cargo shall
be the aggregate of the invoice value of the cargo or the actual value of the
non-trade
commodity at the place of shipment, plus freight and insurance
premium when the insurance liability commences;
(3) The insurable value of the freight
shall be the aggregate of the total amount of freight payable to the carrier
and the insurance
premium when the insurance liability commences;
(4) The insurable value of other subject
matter insured shall be the aggregate of the actual value of the subject matter
insured and
the insurance premium when the insurance liability commences.
Article 220 The insured amount shall be agreed upon between the insurer
and the insured. The insured amount shall not exceed the insured value.
Where
the insured amount exceeds the insured value, the portion in excess shall be
null and void.
Section
2
Conclusion,
Termination and Assignment of Contract
Article 221 A contract of marine insurance comes into being after the
insured puts forth a proposal for insurance and the insurer agrees to accept
the proposal and the insurer and the insured agree on the terms and conditions
of the insurance. The insurer shall issue to the insured
an insurance policy or
other certificate of insurance in time, and the contents of the contract shall
be contained therein.
Article 222 Before the contract is concluded, the insured shall
truthfully inform the insurer of the material circumstances which the insured
has knowledge of or ought to have knowledge of in his ordinary business practice
and which may have a bearing on the insurer in deciding
the premium or whether
be agrees to insure or not.
The insured need not inform the insurer of
the facts which the insurer has known of or the insurer ought to have knowledge
of in his
ordinary business practice if about which the insurer made no
inquiry.
Article 223 Upon failure of the insured to truthfully inform the insurer
of the material circumstances set forth in paragraph 1 of Article 222
of this
Code due to his intentional act, the insurer has the right to terminate the contract
without refunding the premium. The insurer
shall not be liable for any loss
arising from the perils insured against before the contract is terminated.
If, not due to the insured's intentional
act, the insured did not truthfully inform the insurer of the material
circumstances set
out in paragraph
1 of Article 222 of this Code, the
insurer has the right to terminate the contract or to demand a corresponding
increase in the premium.
In case the contract is terminated by the insurer, the
insurer shall be liable for the loss arising from the perils insured against
which occurred prior to the termination of the contract, except where the
material circumstances uninformed or wrongly informed of
have an impact on the
occurrence of such perils.
Article 224 Where the insured was aware or ought to be aware that the
subject matter insured had suffered a loss due to the incidence of a peril
insured against when the contract was concluded, the insurer shall not be
liable for indemnification but shall have the right to
the premium. Where the
insurer was aware or ought to be aware that the occurrence of a loss to the
subject matter insured due to
a peril insured against was impossible, the
insured shall have the right to recover the premium paid.
Article 225 Where the insured concludes contracts with several insurers
for the same subject matter insured and against the same risk, and the
insured
amount of the said subject matter insured thereby exceeds the insured value,
then, unless otherwise agreed in the contract,
the insured may demand
indemnification from any of the insurers and the aggregate amount to be
indemnified shall not exceed the loss
value of the subject matter insured. The
liability of each insurer shall be in proportion to that which the amount he
insured bears
to the total of the amounts insured by all insurers. Any insurer
who has paid an indemnification in an amount greater than that for
which he is
liable, shall have the right of recourse against those who have not paid their
indemnification in the amounts for which
they are liable.
Article 226 Prior to the commencement of the insurance
liability, the insured
may demand the termination of the insurance contract but shall pay the handling
fees to the insurer, and the insurer shall
refund the premium.
Article 227 Unless otherwise agreed in the contract, neither the insurer
nor the insured may terminate the contract after the commencement of
the
insurance liability.
Where the insurance contract provides that
the contract may be terminated after the commencement of the liability, and the
insured
demands the termination of the contract, the insurer shall have the
right to the premium payable from the day of the commencement
of the insurance
liability to the day of termination of the contract and refund the remaining
portion. If it is the insurer who demands
the termination of the contract, the
unexpired premium from the day of the termination of the contract to the day of
the expiration
of the period of insurance shall be refunded to the insured.
Article 228 Notwithstanding the stipulations in Article 227 of this
Code, the insured may not demand termination of the contract for cargo insurance
and voyage insurance on ship after the commencement of the insurance liability.
Article 229 A contract of marine insurance for the carriage of goods by
sea may be assigned by the insured by endorsement or otherwise, and the
rights
and obligations under the contract are assigned accordingly. The insured and
the assignee shall be jointly and severally liable
for the payment of the
premium if such premium remains unpaid up to the time of the assignment of the
contract.
Article 230 The consent of the insurer shall be obtained where the
insurance contract is assigned in consequence of the transfer of the ownership
of the ship insured. In the absence of such consent, the contract shall be
terminated from the time of the transfer of the ownership
of the ship. Where
the transfer takes place during the voyage, the contract shall be terminated
when the voyage ends.
Upon termination of the contract, the
insurer shall refund the unexpired premium to the insured calculated from the
day of the termination
of the contract to the day of its expiration.
Article 231 The insured may conclude an open cover with the
insurer for the goods to be shipped or received in batches within a given
period.
The open cover shall be evidenced by an open policy to be issued by the
insurer.
Article 232 The insurer shall, at the request of the insured, issue
insurance certificates separately for the cargo shipped in batches according
to
the open cover.
Where the contents of the insurance
certificates issued by the insurer separately differ from those of the open
policy, the insurance
certificates issued separately shall prevail.
Article 233 The insured shall notify the insurer immediately on learning
that the cargo insured under the open cover has been shipped or has arrived.
The items to be notified of shall include the name of the carrying ship, the
voyage, the value of the cargo and the insured amount.
Section
3
Obligation
of the Insured
Article 234 Unless otherwise agreed in the insurance contract, the
insured shall pay the premium immediately upon conclusion of the contract.
The
insurer may refuse to issue the insurance policy or other insurance certificate
before the premium is paid by the insured.
Article 235 The insured shall notify the insurer in writing immediately
where the insured has not complied with the warranties under the contract.
The
insurer may, upon receipt of the notice, terminate the contract or demand an
amendment to the terms and conditions of the insurance
coverage or an increase
in the premium.
Article 236 Upon the occurrence of the peril insured against, the
insured shall notify the insurer immediately and shall take necessary and
reasonable
measures to avoid or minimize the loss. Where special instructions
for the adoption of reasonable measures to avoid or minimize the
loss are
received from the insurer, the insured shall act according to such
instructions.
The insurer shall not be liable for the
extended loss caused by the insured's breach of the provisions of the preceding
paragraph.
Section
4
Liability
of the Insurer
Article 237 The insurer shall indemnify the insured promptly after the
loss from a peril insured against has occurred.
Article 238 The insurer's indemnification for the loss from the peril
insured against shall be limited to the insured amount. Where the insured
amount is lower than the insured value, the insurer shall indemnify in the
proportion that the insured amount bears to the insured
value.
Article 239 The insurer shall be liable for the loss to the subject
matter insured arising from several perils insured against during the period
of
the insurance even though the aggregate of the amounts of loss exceeds the
insured amount. However, the insurer shall only be
liable for the total loss
where the total loss occurs after the partial loss which has not been repaired.
Article 240 The insurer shall pay, in addition to the indemnification to
be paid with regard to the subject matter insured, the necessary and
reasonable
expenses incurred by the insured for avoiding or minimizing the loss
recoverable under the contract, the reasonable expenses
for survey and
assessment of the value for the purpose of ascertaining the nature and extent
of the peril insured against and the
expenses incurred for acting on the
special instructions of the insurer.
The payment by the insurer of the expenses
referred to in the preceding paragraph shall be limited to that equivalent to
the insured
amount.
Where the insured amount is lower than the
insured value, the insurer shall be liable for the expenses referred to in this
Article
in the proportion that the insured amount bears to the insured value,
unless the contract provides otherwise.
Article 241 Where the insured amount is lower than the value for
contribution under the general average, the insurer shall be liable for the
general
average contribution in the proportion that the insured amount bears to
the value for contribution.
Article 242 The insurer shall not be liable for the loss caused by the
intentional act of the insured.
Article 243 Unless otherwise agreed in the insurance contract, the
insurer shall not be liable for the loss of or damage to the insured cargo
arising
from any of the following causes:
(1) Delay in the voyage or in the delivery
of cargo or change of market price;
(2) Fair wear and tear, inherent vice or
nature of the cargo; and
(3) Improper packing.
Article 244 Unless otherwise agreed in the insurance contract, the
insurer shall not be liable for the loss of or damage to the insured ship
arising
from any of the following causes:
(1) Unseaworthiness of the ship at the
time of the commencement of the voyage, unless where under a time policy the
insured has no
knowledge thereof;
(2) Wear and tear or corrosion of the ship.
The
provisions of this Article shall apply " mutatis
mutandis" to the insurance of
freight.
Section
5
Loss
of or Damage to the Subject
Matter
Insured and Abandonment
Article 245 Where after the occurrence of a peril insured against the
subject matter insured is lost or is so seriously damaged that it is completely
deprived of its original structure and usage or the insured is deprived of the
possession thereof, it shall constitute an actual
total loss.
Article 246 Where a ship's total loss is considered to be
unavoidable after the occurrence of a peril insured against or the expenses
necessary
for avoiding the occurrence of an actual total loss would exceed the insured value, it shall
constitute a constructive total loss.
Where an actual total loss is considered to be
unavoidable after the cargo has suffered a peril insured against, or the
expenses to
be incurred for avoiding the total actual loss plus that for
forwarding the cargo to its destination would exceed its insured value,
it
shall constitute a constructive total loss.
Article 247 Any loss other than an actual total loss or a
constructive total loss is a partial loss.
Article 248 Where a ship fails to arrive at its destination within
a reasonable time from the place where it was last heard of, unless the
contract
provides otherwise, if it remains unheard of upon the expiry of two
months, it shall constitute missing. Such missing shall be deemed
to be an
actual total loss.
Article 249 Where the subject matter insured has become a constructive
total loss and the insured demands indemnification from the insurer on
the
basis of a total loss, the subject matter insured shall be abandoned to the
insurer. The insurer may accept the abandonment or
choose not to, but shall
inform the insured of his decision whether to accept the abandonment within a
reasonable time.
The abandonment shall not be attached with
any conditions. Once the abandonment is accepted by the insurer, it shall not
be withdrawn.
Article 250 Where the insurer has accepted the abandonment, all rights
and obligations relating to the property abandoned are transferred to the
insurer.
Section
6
Payment
of Indemnity
Article 251 After the occurrence of a peril insured against and before
the payment of indemnity, the insurer may demand that the insured submit
evidence and materials related to the ascertainment of the nature of the peril
and the extent of the loss.
Article 252 Where the loss of or damage to the subject matter insured
within the insurance coverage is caused by a third person, the right of
the
insured to demand compensation
from the third person shall be subrogated to the insurer from the time
the indemnity is paid.
The insured shall furnish the insurer with
necessary documents and information that should come to his knowledge and shall
endeavour
to assist the insurer in
pursuing recovery from the third person.
Article 253 Where the insured waives his right of claim against the
third person without the consent of the insurer or the insurer is unable to
exercise the right of recourse due to the fault of the insured, the insurer may
make a corresponding reduction from the amount of
indemnity.
Article 254 In effecting payment of indemnity to the insured, the
insurer may make a corresponding reduction therefrom of the amount already paid
by a third person to the insured.
Where the compensation obtained by the
insurer from the third person exceeds the amount of indemnity paid by the insurer,
the part
in excess shall be returned to the insured.
Article 255 After the occurrence of a peril insured against, the insurer
is entitled to waive his right to the subject matter insured and pay
the
insured the amount in full to relieve himself of the obligations under the
contract.
In exercising the right prescribed in the
preceding paragraph, the insurer shall notify the insured thereof within seven
days from
the day of the receipt of the notice from the insured regarding
the indemnity. The insurer shall
remain liable for the necessary and reasonable expenses paid by the insured for
avoiding or minimizing
the loss prior to his receipt of the said notice.
Article 256 Except as stipulated in Article 255 of this Code, where a
total loss occurs to the subject matter insured and the full insured amount
is
paid, the insurer shall acquire the full right to the subject matter insured.
In the case of under-insurance, the insurer shall
acquire the right to the
subject matter insured in the proportion that the insured amount bears to the
insured value.
Chapter
XIII
Limitation
of Time
Article 257 The limitation period for claims against the carrier
with regard to the carriage of goods by sea is one year, counting from the day
on which the goods were delivered or should have been delivered by the carrier.
Within the limitation period or
after the expiration thereof, if the person allegedly liable has brought up a
claim of recourse against a
third person, that claim is time-barred at the
expiration of 90 days, counting from the day on which the person claiming for
the
recourse settled the claim, or was served with a copy of the process by the
court handling the claim against him.
The limitation period for claims against
the carrier with regard to voyage charter party is two years, counting from the
day on which
the claimant knew or should have known that his right had been
infringed.
Article 258 The limitation period for claims against the carrier with
regard to the carriage of passengers by sea is two years, counting respectively as follows:
(1) Claims for personal injury: Counting
from the day on which the passenger disembarked or should have disembarked;
(2) Claims for death of passengers that
occurred during the period of carriage: Counting from the day on which the
passenger should
have disembarked; whereas those for the death of passengers
that occurred after the disembarkation but resulted from an injury during
the
period of carriage by sea, counting from the day of the death of the passenger
concerned, provided that this period does not
exceed three years from the time
of disembarkation.
(3) Claims for loss of or damage to the
luggage: Counting from the day of disembarkation or the day on which the passenger
should
have disembarked.
Article 259 The limitation period for claims with regard to charter
parties is two years, counting from the day on which the claimant knew or
should
have known that his right had been infringed.
Article 260 The limitation period for claims with regard to sea towage
is one year, counting from the day on which the claimant knew or should
have
known that his right had been infringed.
Article 261 The limitation period for claims with regard to collision of
ships is two years, counting from the day on which the collision occurred.
The
limitation period for claims with regard to the right of recourse as provided
for in paragraph 3 of Article 169 of this Code
is one year, counting from the
day on which the parties concerned jointly and severally paid the amount of
compensation for the damage
occurred.
Article 262 The limitation period for claims with regard to salvage at
sea is two years, counting from the day on which the salvage operation
was
completed.
Article 263 The limitation
period for claims with regard to contribution in general average is one year,
counting from the day on which the adjustment
was finished.
Article 264 The limitation period for claims with regard to
contracts of marine insurance is two years, counting from the day on which the
peril
insured against occurred.
Article 265 The limitation period for claims with regard to compensation
for oil pollution damage from ships is three years, counting from the
day on
which the pollution damage occurred. However, in no case shall the limitation
period exceed six years, counting from the day
on which the accident causing
the pollution occurred.
Article 266 Within the last six months of the limitation period
if, on account of force majeure or other causes preventing the claims from
being
made, the limitation period shall be suspended. The counting of the
limitation period shall be resumed when the cause of suspension
no longer
exists.
Article 267 The limitation of time shall be discontinued as a result of
bringing an action or submitting the case for arbitration by the claimant
or
the admission to fulfill obligations by the person against whom the claim was
brought up. However, the limitation of time shall
not be discontinued if the
claimant withdraws his action or his submission for arbitration, or his action
has been rejected by a
decision of the court.
Where the claimant makes a claim for the
arrest of a ship, the limitation of time shall be discontinued from the day on
which the
claim is made.
The limitation period shall be counted
anew from the time of discontinuance.
Chapter
XIV
Application
of Law in Relation
to
Foreign-related Matters
Article 268 If any international treaty concluded or acceded to by the
People's Republic of China contains provisions differing from those contained
in this Code, the provisions of the relevant international treaty shall apply,
unless the provisions are those on which the People's
Republic of China has
announced reservations.
International practice may be applied to
matters for which neither the relevant laws of the People's Republic of China
nor any international
treaty concluded or acceded to by the People's Republic
of China contain any relevant provisions
Article 269 The parties to a contract may choose the law
applicable to such contract, unless the law provides otherwise. Where the
parties to
a contract have not made a choice, the law of the country having the
closest connection with the contract shall apply.
Article 270 The law of the flag State of the ship shall apply to
the acquisition, transfer and extinction of the ownership of the ship.
Article 271 The law of the flag State of the ship shall apply to the
mortgage of the ship.
The law of the original country of
registry of a ship shall apply to the mortgage of the ship if its mortgage is
established before
or during its bareboat charter period.
Article 272 The law of the place where the court hearing the case
is located shall apply to matters pertaining to maritime liens.
Article 273 The law of the place where the infringing act is committed
shall apply to claims for damages arising from collision of ships.
The law of the place where the court
hearing the case is located shall apply to claims for damages arising from
collision of ships
on the high sea .
If the colliding ships belong to the same
country, no matter where the
collision occurs, the law of the
flag State shall apply to claims against one another for damages arising from
such collision.
Article 274 The law where the adjustment of general average is made
shall apply to the adjustment of
general average.
Article 275 The law of the place where the court hearing the case
is located shall apply to the limitation of liability for maritime claims.
Article 276 The application of foreign laws or international
practices pursuant to the
provisions of this Chapter shall not jeopardize the public interests of the
People's Republic of China.
Chapter
XV
Supplementary
Provisions
Article 277 The Unit of Account referred to in this Code is the Special
Drawing Right as defined by the International Monetary Fund; the amount
of the
Chinese currency (RMB) in terms of the Special Drawing Right shall be that
computed on the basis of the method of conversion
established by the
authorities in charge of foreign exchange control of this country on the date of the judgment by the
court or the date of the award by the arbitration organization or the date
mutually agreed upon
by the parties.
Article 278 This Code shall come into force as of July 1, 1993.