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MARITIME CODE OF THE PEOPLE'S REPUBLIC OF CHINA
[Note] (Adopted at the 28th Meeting of the Standing Committee of the Seventh
National People's Congress on November 7, 1992, promulgated by Order No. 64 of
the President of the People's Republic of China on November 7, 1992, and
effective as of July 1, 1993)
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 or 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 Foreignrelated 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 I 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;
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