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MARITIME CODE OF THE PEOPLE'S REPUBLIC OF CHINA

(Valid From:1993.07.01)

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 FOREIGN-RELATED MATTERS CHAPTER XV SUPPLEMENTARY 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 \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 \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.

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The term \

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.

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.

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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 of 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.

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