Chapter VI Maritime Security

Article 73 Maritime security consists of securities involved in such procedures as preservation of maritime claims, maritime injunction and preservation of maritime evidence provided for in this Law.

The types of security include cash, guarantee, mortgage or pledge.

Article 74 The security of a maritime claimant shall be submitted to the maritime court; the security of a person against whom a claim is made may be submitted to the maritime court or the maritime claimant.

Article 75 The type and amount of the security provided by a maritime claimant shall be determined by the maritime court. The type and amount of the security provided by a person against whom the claim is made shall be determined through consultation by the maritime claimant and the person against whom the claim is made; if consultation fails, the matter shall be determined by the maritime court.

Article 76 The amount of the security requested for preservation of a maritime claim by a maritime claimant from a person against whom the claim is made shall be equal to the amount of his credit, but shall not exceed the value of the property preserved.

The amount of the security provided by a maritime claimant shall be equal to the loss the person against whom the claim is made may suffer as a result of his application. The exact amount shall be determined by the maritime court.

Article 77 After providing security, the provider may apply to the maritime court for reduction, alteration or cancellation of such security, if he has good reasons to do so.

Article 78 If the amount of the security requested by the maritime claimant is so excessive as to cause losses to the person against whom the claim is made, the maritime claimant shall bear the liability to compensate for the losses.

Article 79 The provisions of this Chapter may apply mutatis mutandis to securities involved in the procedures such as constitution of maritime limitation fund and advance execution.

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.