Chapter VII Service

Article 80 The service of legal documents in maritime actions is governed by the relevant provisions of the Civil Procedure Law of the People's Republic of China and may also be conducted in the following ways:

(1) on the agent ad litem duly entrusted by the person on whom the document is to be served;

(2) on the representative office or branch established in the People's Republic of China by the person on whom the document is to be served, or on the business agent appointed by the person on whom the document is to be served ; or

(3) in other appropriate ways whereby such service can be acknowledged.

The legal documents in respect of arrest of a ship may be served on the master of the ship concerned.

Article 81 Where a person who is under an obligation to accept legal documents refuses to acknowledge the receipt thereof, the server shall make a record on the receipt of service of the fact and, having the receipt of service signed or sealed by the server and the witness, leave the legal documents in the domicile or on the business premises of the person on whom the documents are to be served, in which case the service shall be deemed to be completed.

Chapter XIII Trial Procedure

Section 1 Provisions for Trial of Collision Cases

Article 82 Both the plaintiff and the defendant shall fill in the Investigation Form for Maritime Accident truthfully at the time of bringing an action and of submitting defence respectively.

Article 83 No evidential documents shall be attached to the bill of complaint or the bill of defence served by the maritime court on the parties.

Article 84 The burden of proof shall be discharged by the parties before a court hearing. After the parties have discharged their burden of proof and furnished the maritime court with the statement to this effect, they may apply to consult the evidential documents concerning the ship collision.

Article 85 The parties may not reverse the statement previously made in the Investigation Form for Maritime Accident or the evidence adduced in discharging the burden of proof, unless new evidence has come to light and there is good reason for being unable to submit such new evidence within the period for producing evidence.

Article 86 The survey and appraisal of a ship shall be conducted by institutions or individual with due authorization of the State or by professionally qualified institutions or individuals. The maritime court shall not accept any conclusion of the survey or appraisal made or drawn up by institutions or individuals without authorization of the State or without professional qualifications.

Article 87 A case of ship collision shall be tried and concluded by the maritime court within one year after filing of the case. Where an extension of the period is necessary under special circumstances, it shall be subject to approval by the president of the court.

Section 2 Provisions for Trial of General Average Cases

Article 88 With respect to general average, the parties may either mutually agree to entrust average adjusters with the adjustment, or directly bring an action in a maritime court. In dealing with an unadjusted average dispute, the maritime court may entrust average adjusters with the adjustment.

Article 89 The general average statement made by average adjusters may be admissible as the proper basis for contribution if no objection is raised by any of the parties; otherwise, the maritime court shall decide whether to accept the statement or not.

Article 90 A party may bring an action against the liable person for non-general average losses without being prejudiced by the proceedings commenced for the general average claim arising from the same maritime accident.

Article 91 Actions brought by the parties in respect of the same maritime accident for non-general average losses and for general average contribution by recourse claim against the liable person in the maritime court that entertains the general average case can be consolidated by the same court.

Article 92 A case of general average shall be tried and concluded by a maritime court within one year after filing of the case. Where an extension of the period is necessary under special circumstances, it shall be subject to approval by the president of the court.

Section 3 Provisions for Exercising Right of Subrogation by Marine Insurers

Article 93 Where an accident covered was caused by a third party and the insurer has indemnified the insured, the insurer is entitled to claim compensation against the third party by exercising the right of subrogation up to the amount of the indemnity paid.

Article 94 In exercising the right of subrogation, an insurer shall, bring an action in its own name against the third party that caused the accident covered, if no action has been brought by the insured against that third party.

Article 95 In exercising the right of subrogation, an insurer may apply to the court entertaining the case for an alteration of the party to the lawsuit and subrogate the rights of the insured against the third party that caused the accident covered, if an action has been brought by the insured against that third party.

Where the losses of the insured caused by a third party cannot be fully covered by insurance indemnity, the insurer and the insured may act as co-plaintiffs to claim compensation against the third party.

Article 96 Where an action is brought or an application for participating in the action is filed by an insurer pursuant to the provisions provided for in Articles 94 and 95 of this Law, the insurer shall submit to the maritime court that entertains the case the certificate evidencing payment of indemnity by the insurer and other documents necessary for participating in the action.

Article 97 An aggrieved party may claim for oil pollution damage caused by a ship either against the owner of the ship causing oil pollution damage or directly against the insurer who is answerable for the liabilities of the owner of the ship causing oil pollution damage, or against the person who provides financial security therefor.

Where the insurer for oil pollution damage or the person who provides financial security therefor is sued in an action, such insurer or person is entitled to demand the owner of the ship causing oil pollution damage to join the proceedings.

Section 4 Summary Procedure, Procedure for Hastening Debt Recovery and Procedure for Public Exigence

Article 98 In hearing simple maritime cases in which the facts are evident, the rights and obligations are clear and the dispute is a minor one, the maritime court may apply the provisions governing summary procedure in the Civil Procedure Law of the People's Republic of China.

Article 99 Where a creditor, on the basis of a maritime-related matter, requests a debtor to pay a debt in cash or in securities, if it is found to be in conformity with the relevant provisions in the Civil Procedure Law of the People's Republic of China, the creditor may apply to the maritime court that has jurisdiction for an order of payment.

Where the debtor is an alien, a stateless person or a foreign enterprise or organization that has a domicile or representative office or branch within the territory of the People's Republic of China on which the order of payment can be served, the creditor may apply to the maritime court that has jurisdiction for an order of payment.

Article 100 A holder of a bill of lading or similar documents for taking delivery of cargo may apply for public exigence to the maritime court of the place where the cargo is located in case such documents are out of control or lost.

Chapter IX Procedure for Constitution of Limitation Fund for Maritime Claims

Article 101 After the occurrence of a marine accident, the ship-owner, charterer, operator, salvor or insurer, who wishes to apply for liability limitation in accordance with law, may apply to a maritime court for constitution of the limitation fund for maritime claims.

In the event of oil pollution damage caused by a ship, the ship-owner and the insurer or the person who provides financial security therefor shall, for the purpose of obtaining the right of liability limitation provided for by law, constitute with the maritime court a limitation fund for maritime claims in respect of oil pollution damage.

Constitution of limitation fund may be applied for either before an action is brought or during the process of legal proceedings, or, at the latest, before the judgement of first instance is given.

Article 102 A party who wishes to apply for constitution of a limitation fund for maritime claims before an action is brought shall file an application therefor with the maritime court of the place where the accident occurred, the contract is performed or the ship is under arrest.

Article 103 Constitution of a limitation fund for maritime claims shall not be bound by the jurisdiction agreement or arbitration agreement reached between the parties.

Article 104 A person who wishes to apply for constitution of a limitation fund for maritime claims shall file an application in writing with a maritime court. In the application shall be stated the amount of the limitation fund to be constituted for maritime claims, the reasons therefor as well as the names, addresses and means of correspondence of the interested persons already known, with relevant evidence attached.

Article 105 The maritime court shall, within seven days of the acceptance of an application for constitution of a limitation fund for maritime claims, notify all the interested persons already known and issue an announcement of the same in the newspapers or other news media.

Such notice and announcement shall contain:

(1) name of the applicant;

(2) facts and reasons for application;

(3) particulars for constitution of the limitation fund for maritime claims;

(4) particulars necessary in registration of claims; and

(5) other matters which need to be announced.

Article 106 Any interested person who objects to the application filed by the applicant for constitution of a limitation fund for maritime claims shall file in writing with the maritime court within seven days from the date of receipt of the notice, or within 30 days from the date of the announcement if no notice is received.

The maritime court, having received the written objection filed by an interested person, shall examine the objection and make an order within 15 days. If the objection is well founded, it shall make an order to reject the application of the applicant. Otherwise, it shall make an order to allow the applicant to constitute a limitation fund for maritime claims.

The party who is dissatisfied with such an order may appeal within seven days from the date of receipt thereof. The people's court of second instance shall make an order within 15 days from the date of receipt of the appeal.

Article 107 Where no objection is raised by an interested person within the prescribed time limit, the maritime court shall make an order to allow the applicant to constitute a limitation fund for maritime claims.

Article 108 After the order to allow the applicant to constitute a limitation fund for maritime claims becomes effective, the applicant shall constitute the fund with the maritime court.

A limitation fund for maritime claims may be constituted either by depositing cash or by providing security acceptable to the maritime court.

The sum of the limitation fund for maritime claims shall cover the amount of liability to be limited and any interest accruing from the date of the accident up to the date of constitution. Where the fund is constituted by way of security, the amount of the security shall cover the amount of the fund and any interest accruing thereon during the period of such constitution.

Where the fund is constituted with cash deposited, the date on which the fund is transferred into the bank account designated by the maritime court shall be deemed to be the date of constitution of the fund. Where the fund is constituted with security provided, the date on which the maritime court accepts the security shall be deemed to be the date of constitution of the fund.

Article 109 After a limitation fund for maritime claims has been constituted, the parties shall bring an action in respect of the maritime dispute with the maritime court with which the limitation fund for maritime claims has been constituted, unless a jurisdiction agreement or arbitration agreement has been reached between the parties.

Article 110 A person, having wrongly applied for constitution of a limitation fund for maritime claims, shall indemnify the interested person for the losses thus incurred.