Chapter IX Public Air Transport

Section 1 Basic Principles

Article 106 This Chapter shall apply to the transport of persons， baggage， or cargo performed by the civil aircraft of public air transport enterprise， including the gratuitous transport performed by the civil aircraft of public air transport enterprise.

This Chapter shall not apply to the transport of mail performed by civil aircraft.

The provisions of this Chapter shall apply to the part of transport by air in the case of multi-modal transport.

Article 107 “Domestic air transport” referred to in this Chapter means any transport in which， according to the contract of transport by air between the parties， the place of departure， the place of destination and the agreed stopping place are all situated within the territory of the People's Republic of China.

“International air transport” referred to in this Chapter means any transport in which， according to the contract of transport by air between the parties， the place of departure， the place of destination or the agreed stopping place， whether or not there be a break in the transport or a transshipment， is not situated within the territory of the People's Republic of China.

Article 108 Transport to be performed by several successive air carriers is deemed to be one undivided transport， if it has been regarded by the parties to the contract of transport by air as a single operation， whether it had been agreed upon under the form of a single contract or of a series of contracts.

Section 2 Transport Documents

Article 109 For the transport of passengers the carrier shall deliver a passenger ticket. A passenger to travel in civil aircraft shall produce a valid passenger ticket for check.

Article 110 The contents of a passenger ticket shall be prescribed by the competent civil aviation authority under the State Council. A passenger ticket shall at least contain the following particulars：

（1） The place of departure and of destination；

（2） If the places of departure and destination are within the territory of the People's Republic of China， one or more agreed stopping places being outside the said territory， an indication of at least one such stopping place； and

（3） If the ultimate destination， the place of departure or the agreed stopping place of the passenger's journey is not situated within the territory of the People's Republic of China， a notice indicating the international air transport convention applicable to such transport， in case such convention requires the inclusion of the notice in the passenger ticket.

Article 111 The passenger ticket shall constitute prima facie evidence of the conclusion and conditions of the contract of transport of passenger by air.

The failure of the passenger to produce the passenger ticket， or the irregularity or loss of the passenger ticket does not affect the existence or validity of the contract of transport.

In domestic air transport， if， with the consent of the carrier， the passenger embarks on a civil aircraft without a passenger ticket having been delivered， the carrier shall not be entitled to avail himself of the provisions of Article 128 of this Law concerning the limit of liability.

In international air transport， if， with the consent of the carrier， the passenger embarks on a civil aircraft without a passenger ticket having been delivered， or if the ticket does not include the notice required by sub-paragraph （3） of Article 110 of this Law， the carrier shall not be entitled to avail himself of the provisions of Article 129 of this Law concerning the limit of liability.

Article 112 In respect of the transport of checked baggage by a carrier， a baggage check may be combined with or incorporated in a passenger ticket. In addition to the provisions of Article 110 of this Law， a baggage check shall also include the following particulars：

（1） The number of packages and weight of the baggage； and

（2） If a declaration of interest in delivery at destination of the checked baggage is required， indicate the sum of declared interest.

The baggage check shall constitute prima facie evidence of the checking of the baggage and of the conditions of the contract of transport.

The failure of the passenger to produce the baggage check， or the irregularity or loss of the baggage check does not affect the existence or validity of the contract of transport.

In domestic air transport， if the carrier carries the checked baggage without a baggage check having been delivered， he shall not be entitled to avail himself of the provisions of Article 128 of this Law concerning the limit of liability.

In international air transport， if the carrier carries the checked baggage without a baggage check having been delivered， or if the baggage check does not include the notice required by sub-paragraph （3） of Article 110 of this Law， the carrier shall not be entitled to avail himself of the provisions of Article 129 of this Law concerning the limit of liability.

Article 113 The carrier has the right to require the shipper to make out an air waybill； a shipper has the right to require the carrier to accept the air waybill. The failure of the shipper to produce the air waybill， or the irregularity or loss of the air waybill shall not affect the existence or validity of the contract of transport.

Article 114 The air waybill shall be made out by the shipper in three original parts and be handed over to the carrier with the cargo.

The first part of the air waybill shall be marked “for the carrier” and shall be signed and sealed by the shipper； the second part shall be marked “for the consignee” and shall be signed and sealed by both the shipper and the carrier； the third part shall be signed and sealed by the carrier and handed by him to the shipper after the cargo has been accepted.

If， at the request of the shipper， the carrier makes out the air waybill， he shall be deemed， subject to proof to the contrary， to have done so on behalf of the shipper.

Article 115 The contents of an air waybill shall be prescribed by the competent civil aviation authority under the State Council. An air waybill shall at least contain the following particulars：

（1） The place of departure and of destination；

（2） If the places of departure and destination are within the territory of the People's Republic of China， one or more agreed stopping places being outside such territory， an indication of at least one such stopping place； and

（3） If the ultimate destination， the place of departure or the agreed stopping place of the cargo transport is not situated within the territory of the People's Republic of China， a notice indicating the international air transport convention applicable to such transport， in case such convention requires the inclusion of the notice in the air waybill.

Article 116 In domestic air transport， if， with the consent of the carrier， cargo is carried without an air waybill having been made out， the carrier shall not be entitled to avail himself of the provisions of Article 128 of this Law concerning the limit of liability.

In international air transport， if， with the consent of the carrier， cargo is carried without an air waybill having been made out， or if the air waybill does not include the notice required by sub-paragraph （3） of Article 115 of this Law， the carrier shall not be entitled to avail himself of the provisions of Article 129 of this Law concerning the limit of liability.

Article 117 The shipper shall be responsible for the correctness of the particulars and statements relating to the cargo which he inserts in the air waybill.

The shipper shall indemnify the carrier against all damage suffered by him， or by any other person to whom the carrier is liable， by reason of the irregularity， incorrectness or incompleteness of the particulars and statements inserted in the air waybill.

Article 118 The air waybill shall be prima facie evidence of the conclusion of the contract of transport of cargo by air， of the conditions of transport and of the receipt of the cargo by the carrier.

The statements in the air waybill relating to the weight， dimensions， and packing of the cargo， as well as those relating to the number of packages， shall be prima facie evidence of the facts stated. Those relating to the quantity， volume， and conditions of the cargo shall not constitute evidence against the carrier except so far as they both have been and are stated in the air waybill to have been checked by him in the presence of the shipper， or relate to the apparent condition of the cargo.

Article 119 Subject to his liability to carry out all his obligations under the contract of transport of cargo by air， the shipper shall have the right to dispose of the cargo by withdrawing them at the airport of departure or destination， or by stopping them in the course of the journey on any landing， or by calling for them to be delivered at the place of destination， or in the course of the journey to a person other than the consignee named in the air waybill， or by requiring them to be returned to the airport of departure； provided that the shipper must not exercise this right of disposition in such a way as to prejudice the carrier or other shippers and he must repay any expenses occasioned by the exercise of this right.

If it is impossible to carry out the orders of the shipper， the carrier must so inform him forthwith.

If the carrier obeys the orders of the shipper for the disposition of the cargo without requiring the production of the part of the air waybill delivered to the latter， he will be liable， without prejudice to his right of recovery from the shipper， for any damage which may be caused thereby to any person who is lawfully in possession of that part of the air waybill.

The right conferred on the shipper shall cease at the moment when that of the consignee begins in accordance with the provisions of Article 120 of this Law； provided that if the consignee declines to accept the air waybill or the cargo， or if he cannot be communicated with， the shipper shall resume his right of disposition.

Article 120 Except in the circumstances set out in Article 119， the consignee shall be entitled， on arrival of the cargo at the place of destination， to require the carrier to hand over to him the air waybill and to deliver the cargo to him， on payment of the charges due and on complying with the conditions of transport set out in the air waybill.

Unless it is otherwise agreed， it shall be the duty of the carrier to give notice to the consignee as soon as the cargo arrives.

If the carrier admits the loss of the cargo， or if the cargo has not arrived at the expiration of seven days after the date on which it ought to have arrived， the consignee shall be entitled to put into force against the carrier the rights which flow from the contract of transport of cargo by air.

Article 121 The shipper and the consignee can respectively enforce all the rights given them by Articles 119 and 120 of this Law， each in his own name， whether he is acting in his own interest or in the interest of another， provided that he carries out the obligations imposed by the contract of transport of cargo by air.

Article 122 The provisions of Articles 119， 120 and 121 of this Law shall not affect the relations of the shipper and the consignee with each other or the mutual relations of third parties whose right are derived either from the shipper or from the consignee.

Any terms of the contract which are different from the provisions of Articles 119， 120 and 121 of this Law shall be expressly stated in the air waybill.

Article 123 The shipper shall furnish such information and documents as are necessary to meet the formalities provided by laws and administrative rules and regulations before the cargo can be delivered to the consignee.

The shipper shall be liable to the carrier for any damage occasioned by the absence， insufficiency or irregularity of any such information or documents， unless the damage is due to the fault of the carrier， his servants or agents.

The carrier is under no obligation to check such information or documents unless otherwise provided by laws and administrative rules and regulations.

Section 3 Liability of the Carrier

Article 124 The carrier shall be liable for the death or personal injury of a passenger， if the accident took place on board the civil aircraft or in the course of any of the operations of embarking on or disembarking from the civil aircraft； provided that the carrier is not liable if the death or injury resulted solely from the state of health of the passenger.

Article 125 The carrier shall be liable for the destruction or loss of， or damage to， any carry-on articles of the passenger， if the occurrence took place on board the civil aircraft or in the course of any of the operations of embarking on or disembarking from the civil aircraft of the passenger. The carrier shall be liable for the destruction or loss of， or damage to any checked baggage of the passenger， if the occurrence took place during the transport by air.

The carrier shall not be liable for the destruction or loss of， or damage to， any carry-on articles or checked baggage of the passenger if such destruction or loss or damage resulted solely from the inherent defect， quality or vice of the baggage.

“Baggage” referred to in this Chapter includes both checked baggage and the carry-on articles of the passenger.

The carrier shall be liable for the destruction or loss of， or damage to， any cargo if the occurrence took place during the transport by air； provided that the carrier is not liable if he proves that the destruction or loss of， or damage to， the cargo resulted solely from one or more of the following：

（1） Inherent defect， quality or vice of that cargo；

（2） Defective packing of that cargo performed by a person other than the carrier or his servants or agents；

（3） An act of war or an armed conflict； or

（4） An act of public authority carried out in connection with the entry， exit or transit of the cargo.

The “period of the transport by air” referred to in this Article means the whole period during which the checked baggage or cargo is in the charge of the carrier， whether in an airport or on board a civil aircraft， or， in the case of a landing outside the airport， in any place whatsoever.

The period of the transport by air does not extend to any transport by land， by sea or by river performed outside an airport； provided that if such transport is used for loading， delivery or transshipment for the performance of a contract of transport by air， any damage took place during such transport is presumed， subject to proof to the contrary， to have been the damage taken place during the period of transport by air.

Article 126 The carrier shall be liable for damage occasioned by delay in the transport by air of passengers， baggage or cargo； provided that the carrier is not liable if he proved that he and his servants or agents have taken all necessary measures to avoid the damage or that is was impossible for him or them to take such measures.

Article 127 In the transport of passengers and baggage， if the carrier proves that the damage was caused by or contributed to by the fault of the claimant， the carrier may be wholly or partly exonerated from his liability in accordance with the extent of the fault that caused or contributed to such damage. Where a person other than the passenger claims compensation with respect to the death or injury of the passenger， the carrier may similarly be wholly or partly exonerated from his liability in accordance with the extent of the fault that caused or contributed to such damage， if the carrier proves that the death or injury was caused by or contributed to by the fault of the passenger himself.

In the transport of cargo， if the carrier proves that the damage was caused by or contributed to the fault of the person claiming compensation， or the person from whom he derived his right， the carrier shall be wholly or partly exonerated from his liability in accordance with the extent of the fault that caused or contributed to such damage.

Article 128 The limits of carrier's liability in domestic air transport shall be formulated by the competent civil aviation authority under the State Council and put in force after being approved by the State Council.

If the passenger or the shipper has made， at the time when the checked baggage or cargo was handed over to the carrier， a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires， the carrier shall be liable to pay a sum not exceeding the declared sum， unless he proves that the sum declared by the passenger or shipper is greater than the actual interest of the checked baggage or cargo in delivery at destination； the other provisions of Article 129 of this Law shall be applicable to domestic air transport except the limits of liability.

Article 129 In international air transport， the liability of the carrier shall be as the following：

（1） The liability of the carrier for each passenger is limited to the sum of 16600 units of account. Nevertheless， the passenger may agree with the carrier in writing to a limit of liability higher than that prescribed by this sub-paragraph；

（2） The liability of the carrier for each kilogram of checked baggage or cargo is limited to a sum of 17 units of account. If the passenger or shipper has made， at the time when the package was handed over to the carrier， a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires， the carrier shall be liable to pay a sum not exceeding the declared sum， unless he proves that the sum declared by the passenger or shipper is greater than the actual interest of the checked baggage or cargo in delivery at destination.

In the case of destruction， loss， damage or delay of a part of checked baggage or cargo， or of any object contained therein， the weight to be taken into consideration in determining the amount to which the carrier's liability is limited shall only be the total weight of the package or packages concerned. Nevertheless， when the destruction， loss， damage or delay of a part of the checked baggage or cargo， or of an object contained therein， affects the value of other packages covered by the same baggage check or the same air waybill， the total weight of such package or packages shall also be taken into consideration in determining the limit of liability of the carrier.

（3） The liability of the carrier for carry-on baggage of a passenger is limited to 332 units of account per passenger.

Article 130 Any provision tending to relieve the carrier of the liability prescribed by this Law or to fix a lower limit than that which is laid down in this Law shall be null and void， but the nullity of any such provision shall not involve the nullity of the whole contract of transport by air.

Article 131 Any action for damage occurred in air transport， however founded， can only be brought subject to the conditions and limits of liability set out in this Law， without prejudice to the question as to who are the persons who have the right to bring suit and what are their respective rights.

Article 132 The carrier shall not be entitled to avail himself of the provisions of Articles 128 and 129 of this Law concerning the limit of liability if it is proved that the damage in the air transport resulted from an act or omission of the carrier， his servants or agents， done with intent to cause damage or recklessly and with knowledge that damage would probably result； provided that， in the case of such act or omission of a servant or agent of the carrier， it is also proved that he was acting within the scope of his employment.

Article 133 If an action is brought against a servant or agent of the carrier arising out of damage during air transport， such servant or agent， if it proves that he acted within the scope of his employment， shall be entitled to avail himself of the limits of liability as provided in Articles 128 and 129 of this Law.

The aggregate of the amounts recoverable from the carrier， his servants and agents， in the case provided in the preceding paragraph， shall not exceed the legal limits of liability.

The provisions of paragraphs 1 and 2 of this Article shall not apply if it is proved that the damage in air transport resulted from an act or omission of the servant or agent of the carrier done with intent to cause damage or recklessly and with knowledge that damage would probably result.

Article 134 Receipt by the passenger of checked baggage or receipt of cargo by the consignee without complaint shall be prima facie evidence that the same have been delivered in good condition and in accordance with the document of transport.

In the case of damage to checked baggage or cargo， the passenger or consignee must complain to the carrier forthwith after the discovery of the damage， and at the latest， within seven days from the date of receipt in the case of checked baggage and fourteen days from the date of receipt in the case of cargo. In the case of delay the complaint must be made at the latest within twenty-one days from the date on which the checked baggage or cargo have been placed at the disposition of the passenger or consignee.

Every complaint must be made in writing upon the document of transport or by separate notice dispatched within the periods prescribed in the preceding paragraph.

Failing complaint within the periods provided in paragraph 2 of this Article， the passenger or consignee shall be deprived of the right to claim compensation from the carrier， save in the case of fraud on the part of the carrier.

Article 135 The time for bringing up an action concerning air transport is limited to two years， reckoned from the date of arrival of civil aircraft at the destination， or from the date on which the civil aircraft ought to have arrived， or from the date on which the transport stopped.

Article 136 In the case of transport to be performed by various successive carriers， each carrier who accepts passengers， baggage or cargo shall be subject to the provisions of this Law， and shall be deemed to be one of the contracting parties to the contract of transport in so far as that part of the transport is concerned which is performed by it in accordance with the contract.

In the case of transport of this nature， the passenger or his successor can take action only against the carrier who performed the part of transport during which the accident or the delay occurred， save in the case where， by express agreement， the first carrier shall assume liability for the whole journey.

As regards checked baggage or cargo， the passenger or shipper shall have the right of action against the first carrier， and the passenger or consignee shall have the right of action against the last carrier， and further， each may take action against the carrier who performed the part of transport during which the destruction， loss， damage， or delay took place. These carriers shall be jointly and severally liable to the passenger or to the shipper or consignee.

Section 4 Special Provisions Governing Air Transport Performed by Ac Carrier

Article 137 “Contracting carrier” referred to in this Section means any person who has concluded a contract of transport by air subject to the regulations of this Chapter in his own name with a passenger or a shipper， or with the agent of a passenger or of a shipper.

“Actual carrier” referred to in this Section means any person to whom the performance of the whole or part of the transport referred to in the preceding paragraph has been authorized by the contracting carrier， and who is not the successive carrier as provided in this Chapter； in the absence of a proof to the contrary， such authorization is deemed to be in existence.

Article 138 Both the contracting carrier and the actual carrier shall， except as otherwise provided in this Section， be subject to the provisions of this Chapter. The contracting carrier shall be responsible for the whole of the transport contemplated in the contract. The actual carrier shall be responsible for the transport which he performs.

Article 139 The acts and omissions of an actual carrier and of his servants and agents acting within the scope of their employment shall， in relation to the transport performed by the actual carrier， be deemed to be also those of the contracting carrier.

The acts and omissions of the contracting carrier and of his servants and agents acting within the scope of their employment shall， in relation to the transport performed by the actual carrier， be deemed to be also those of the actual carrier. Nevertheless， no such act or omission shall subject the actual carrier to liability exceeding the legal limits.

Any special agreement under which the contracting carrier concerned assumes obligations not imposed by this Chapter or waives the rights conferred by this Chapter or any special declaration of interest in delivery at destination contemplated in Articles 128 and 129 of this Law， shall not affect the actual carrier unless agreed by him.

Article 140 Any claim to be made or order to be given under the provisions of this Chapter shall have equal effect whether addressed to the contracting carrier or to the actual carrier. Nevertheless， orders referred to in Article 119 of this Law shall only be effective if addressed to the contracting carrier.

Article 141 In relation to the transport performed by the actual carrier， any servant or agent of that carrier or of the contracting carrier shall， if he proves that he acted within the scope of his employment， be entitled to avail himself of the provisions of Articles 128 and 129 of this Law concerning the limits of liability， unless he acted in a manner which， under the provisions of this Law， prevents the limits of liability from being invoked.

Article 142 In relation to the transport performed by the actual carrier， the aggregate of the amounts recoverable from that carrier and the contracting carrier， and from their servants and agents acting within the scope of their employment， shall not exceed the highest amount which could be awarded against either the contracting carrier or the actual carrier under this Law， but none of the persons mentioned shall be liable for a sum in excess of the limit of liability applicable to him.

Article 143 In relation to the transport performed by the actual carrier， an action may be brought against that carrier or the contracting carrier separately， or against both together； the carrier against whom an action has been brought shall have the right to require the other carrier to join in the proceedings.

Article 144 Except as provided in Article 143 of this Law， nothing in this Section shall affect the rights and obligations between the actual carrier and the contracting carrier.

Chapter X General Aviation

Article 145 “General aviation” means civil aviation operations other than public air transport with civil aircraft， including aerial work in the fields of industry， agriculture， forestry， fishery and building industry， and flight operations in the fields of medical and health work， emergency and disaster relief， meteorological service， ocean monitoring， scientific experiment， education and training， culture and sports.

Article 146 The operation of general aviation shall satisfy the following conditions：

（1） The availability of civil aircraft suitable to the general aviation activities to be operated and conforming to the requirements of ensuring flight safety；

（2） The availability of necessary airmen who have been issued licences according to law； and

（3） Other conditions conforming to the provisions of laws and administrative rules and regulations.

The operation of general aviation for commercial purposes is limited to corporate enterprises.

Article 147 Those engaged in general aviation operations not for commercial purposes shall register with the competent civil aviation authority under the State Council.

Those engaged in general aviation operations for commercial purposes shall apply to the competent civil aviation authority under the State Council for general aviation operating licences， and register with the administrative department for industry and commerce according to law； no registration shall be performed by the administrative department for industry and commerce for those that failed to obtain operating licences.

Article 148 A general aviation enterprise engaged in general aviation operations for commercial purposes shall enter into agreement in writing with users with the exception of rescue or disaster relief operations under emergent circumstances.

Article 149 In organizing and carrying out aerial work， effective measures shall be taken to ensure flight safety， protect environment and ecological balance and prevent damage to be caused to environment， residents， crops or livestock.

Article 150 Those engaged in general aviation operations shall be covered by insurance against liability for third parties on the surface.

Chapter XI Search and Rescue and Accident Investigation

Article 151 A civil aircraft in emergency shall flash signals and report to air traffic control unit to request rescue； the air traffic control unit shall notify immediately the search and rescue coordination centre. A civil aircraft in emergency on the sea shall also flash signals to vessels and national maritime search and rescue service.

Article 152 Any unit or person observing or listening in to the emergency of a civil aircraft shall immediately notify the search and rescue coordination centre concerned， the maritime search and rescue service concerned or the local People's Government.

Article 153 Upon receiving the notification， the search and rescue coordination centre， the local People's Government and the maritime search and rescue service shall immediately organize the search and rescue operation.

The search and rescue coordination centre which has received the notice shall manage to notify the civil aircraft in emergency of the search and rescue measures already taken.

The specific measures for searching and rescuing civil aircraft shall be formulated by the State Council.

Article 154 The unit or person performing search and rescue mission shall do their best to rescue the persons carried in the civil aircraft， and take measures to rescue the civil aircraft， protect the scene of accident and preserve evidences according to regulations.

Article 155 The parties to an accident of civil aircraft and persons concerned shall， at the time of investigation， truthfully reflect the situation at the scene of accident and other information concerning the accident.

Article 156 The organization and procedures of the investigation of civil aircraft accident shall be prescribed by the State Council.

Chapter XII Liability for Damage to Third Parties on the Surface

Article 157 Any person on the surface （including water surface， the same below） who suffers death or personal injury or damage to property caused by a civil aircraft in flight or by any person or thing falling therefrom shall be entitled to compensation. Nevertheless， the person suffers damage shall have no right to compensation if the damage is not a direct consequence of the incident giving rise thereto， or if the damage results from the mere fact of passage of the civil aircraft through the airspace in conformity with air traffic regulations concerned of the State.

The term “in flight” mentioned in the preceding paragraph means the period beginning from the moment when power is applied by a civil aircraft for the purpose of actual takeoff until the moment when the landing run ends. In the case of a civil aircraft lighter than air， the expression “in flight” relates to the period from the moment when it becomes detached from the surface until it becomes again attached thereto.

Article 158 The liability for compensation contemplated by Article 157 of this Law shall attach to the operator of the civil aircraft.

The term “operator” mentioned in the preceding paragraph means the person who was making use of the civil aircraft at the time the damage was caused. However， if the control of the navigation of the civil aircraft was retained by the person from whom the right to make use of the civil aircraft was derived， whether directly or indirectly， that person shall still be considered the operator.

The operator shall be considered to be making use of a civil aircraft when his servants or agents are using the civil aircraft in the course of their employment， whether or not within the scope of their authority.

The registered owner of the civil aircraft shall be presumed to be the operator and shall be liable as such unless， in the proceedings for the determination of his liability， he proves that some other person was the operator and， in so far as legal procedures permit， takes appropriate measures to make that other person a party in the proceedings.

Article 159 If a person makes use of a civil aircraft without the consent of the person entitled to its navigational control and caused a damage to third parties on the surface， the person entitled to the navigation control， unless he proves that he has exercised due care to prevent such use， shall be jointly and severally liable with the unlawful user.

Article 160 Any person who would otherwise be liable under the provisions of this Chapter shall not be liable if the damage is the direct consequence of armed conflict or civil disturbance.

Any person who would otherwise be liable under the provision of this Chapter shall not be liable if such person has been deprived of the right to use the civil aircraft by the public authority according to law.

Article 161 Any person who would otherwise be liable under the provisions of this Chapter shall be exonerated from the liability for damage if he proves that the damage was caused solely by the fault of the person who suffers the damage or of the latter's servants or agents. If the person liable proves that the damage was contributed to by the fault of the person who suffers the damage， or of his servants or agents， the compensation shall be reduced to the extent to which such fault contributed to the damage. Nevertheless， there shall be no such exoneration or reduction if， in the case of the fault of a servant or agent， the person who suffers the damage proves that his servant or agent was acting outside the scope of his authority.

Where an action is brought by one person to recover the damage arising from the death or injury of another person， and the damage was caused by the fault of such other person， or of his servants or agents， the provisions of the preceding paragraph shall apply.

Article 162 When two or more civil aircraft have collided or interfered with each other in flight and damage for which a right to compensation as contemplated in Article 157 of this Law results， or when two or more civil aircraft have jointly caused such damage， each of the civil aircraft concerned shall be considered to have caused the damage and the operator of each civil aircraft shall be liable.

Article 163 The persons referred to in paragraph 4 of Article 158 and Article 159 of this Law shall be entitled to all defences which are available to an operator under the provisions of this Chapter.

Article 164 Neither the operator， the owner， any person liable under Article 159 of this Law， nor their respective servants or agents， shall be liable for damage on the surface caused by a civil aircraft in flight or any person or thing falling therefrom otherwise than as expressly provided in this Chapter， except any such person who has caused the damage deliberately.

Article 165 Nothing in this Chapter shall prejudice the question whether a person liable for damage in accordance with its provisions has a right of recourse against any other person.

Article 166 The operator of a civil aircraft shall be covered by insurance against liability for third parties on the surface or obtain corresponding guarantee.

Article 167 The insurer or the guarantor may， in addition to the defences available to the operator， and the defence of forgery， set up only the following defences against claims brought up in accordance with the provisions of this Chapter：

（1） That the damage occurred after the insurance or guarantee ceased to be effective. However， if the insurance or guarantee expires during a flight， it should be continued in force until the next landing specified in the flight plan， but no longer than twenty-four hours； and

（2） That the damage occurred outside the territorial limits provided by the insurance or guarantee， unless flight outside of such limits was caused by force majeure， assistance justified by the circumstances or an error in piloting， operation or navigation.

The continuation in force of the insurance and guarantee under the provisions of the preceding paragraph shall apply only for the benefit of he person suffering damage.

Article 168 Without prejudice to any right of direct action which the person suffering damage may have under the law governing the contract of insurance or guarantee， such person may bring a direct action against the insurer or guarantor only in the following cases：

（1） Where the insurance or guarantee is continued in force under the provisions of sub-paragraphs （1） and （2） of Article 167 of this Law； and

（2） The bankruptcy of the operator.

Excepting the defences specified in paragraph 1 of Article 167 of this Law， the insurer or guarantor may not， with respect to direct actions brought by the person suffering damage in accordance with the provisions of this Chapter， avail himself of any ground of nullity of the insurance or guarantee or any right of retroactive cancellation in setting up defences.

Article 169 If insurance or guarantee is furnished in accordance with Article 166 of this Law， it shall be specifically and preferentially assigned to payment of claims under this Chapter.

Article 170 Any sum due to an operator from an insurer shall be exempt from seizure and execution by creditors of the operator until claims of third parties under this Chapter have been satisfied.

Article 171 Actions concerning indemnity for damage to third parties on the surface shall be subject to a period of limitation of two years from the date of the incident which caused the damage； but in any case such period shall not go beyond a period of three years from the date of the incident which caused the damage.

Article 172 The provisions of this Chapter shall not apply to the following damage：

（1） The damage caused to a civil aircraft in flight， or to persons or cargo on board such aircraft；

（2） The damage which is regulated either by a contract between the person who suffers such damage and the operator or the person entitled to use the civil aircraft at the time the damage occurred， or by the law relating to workman's compensation applicable to a contract of employment between such persons； and

（3） Nuclear damage.

Chapter XIII Special Provisions Governing Foreign Civil Aircraft

Article 173 The provisions of this Chapter shall be applicable to foreign civil aircraft operated by foreigners and engaged in civil aviation activities in the territory of the People's Republic of China； where no provisions are available in this Chapter， other provisions concerned in this Law shall apply.

Article 174 A foreign civil aircraft may enter or leave the airspace of the People's Republic of China， and operate or land in the territory of the People's Republic of China only in accordance with the air transport agreement concluded between the Government of the People's Republic of China and the government of the State in which the aircraft is registered， or in accordance with the approval or clearance of the competent civil aviation authority under the State Council of the People's Republic of China.

If a foreign civil aircraft， not conforming to the provisions of the preceding paragraph， is entering or leaving the airspace of the People's Republic of China without authorization， the authorities concerned of the People's Republic of China have the right to take necessary measures to order the aircraft to land at a designated airport； if there is reasonable ground to deem that it is necessary to make an inspection of a foreign civil aircraft which operates in conformity with the provisions of the preceding paragraph， the authorities concerned have the right to order the aircraft to land at a designated airport.

Article 175 The operator of a foreign civil aircraft entering the airspace of the People's Republic of China shall furnish relevant certificate（s） to prove that he has been covered by insurance against liability for third parties on the surface， or obtained corresponding guarantee； where the operator fails to furnish the relevant certificate（s）， the competent civil aviation authority under the State Council of the People's Republic of China has the right to refuse him to operate into the airspace of the People's Republic of China.

Article 176 The operator of a foreign civil aircraft may operate the international scheduled air services specified in the air transport agreement concluded between the Government of the People's Republic of China and his own government only after he has been designated by his own government and obtained the operating licence issued by the competent civil aviation authority under the State Council of the People's Republic of China； the operator of a foreign civil aircraft may operate non-scheduled air transport between a place within the territory of the People's Republic of China and a place without said territory only after he has been approved by his own government and by the competent civil aviation authority under the State Council of the People's Republic of China.

The operator of foreign civil aircraft mentioned in the preceding paragraph shall， in accordance with the provisions of the laws and administrative rules and regulations of the People's Republic of China， formulate corresponding plan of security and submit it to the competent civil aviation authority under the State Council of the People's Republic of China for the record.

Article 177 No operator of foreign civil aircraft shall operate the air transport between two points in the People's Republic of China.

Article 178 The flight of a foreign civil aircraft shall be conducted in accordance with the timetable or flight plan approved by the competent civil aviation authority under the State Council of the People's Republic of China； approval of the competent civil aviation authority under the State Council of the People's Republic of China shall be obtained by the operator in respect of any change in timetable or flight plan； the operator shall report in time to the competent civil aviation authority under the State Council of the People's Republic of China in respect of any change or cancellation of flight.

Article 179 A foreign civil aircraft shall take off or land at a customs airport designated by the competent civil aviation authority under the State Council of the People's Republic of China.

Article 180 The competent civil aviation authority under the State Council of the People's Republic of China and other competent authorities shall have the right to inspect the documents specified in Article 90 of this Law of a foreign civil aircraft on its landing or departure.

Foreign civil aircraft and the persons， baggage and cargo carried therein shall be subject to entry， exit， customs， quarantine and other inspections exercised by the competent authorities concerned of the People's Republic of China according to law.

In exercising the inspections prescribed in the two preceding paragraphs， undue delay shall be prevented.

Article 181 The civil aircraft certificates of airworthiness and certificates of competency and licences of crew members issued or rendered valid by the State in which the nationality of a foreign civil aircraft is registered， shall be recognized as valid by the Government of the People's Republic of China， provided that the requirements under which such certificates or licences were issued or rendered valid shall be equal to or above the minimum standards established by the International Civil Aviation Organization.

Article 182 In the event that a foreign civil aircraft is in emergency within the search and rescue area of the People's Republic of China， the participation of its owner or of the State in which the nationality of the aircraft is registered shall be subject to the approval of the competent civil aviation authority under the State Council of the People's Republic of China or in accordance with the agreement between the governments of the two States.

Article 183 In the event of an accident occurred to a foreign civil aircraft in the territory of the People's Republic of China， the State in which the nationality of the aircraft is registered or other States concerned may appoint observers to take part in accident investigation. The report of accident investigation and findings in the matter shall be communicated by the competent civil aviation authority under the State Council of the People's Republic of China to the State in which the nationality of such civil aircraft is registered and other States concerned.

Chapter XIV Application of Law to Foreign-related Matters

Article 184 Where the provisions of an international treaty concluded or acceded to by the People's Republic of China are different from those of this Law， the provisions of that international treaty shall apply， except the provisions for which reservation has been declared by the People's Republic of China.

In respect of cases which are not provided by the law of the People's Republic of China or by the international treaties concluded or acceded to by the People's Republic of China， international practices may apply.

Article 185 The law of the State in which the nationality of a civil aircraft is registered shall be applicable to the acquisition， transference and extinction of the ownership of the civil aircraft.

Article 186 The law of the State in which the nationality of a civil aircraft is registered shall be applicable to the mortgage of the civil aircraft.

Article 187 The law of the location of the court which takes up the case shall be applicable to civil aviation liens.

Article 188 The parties to a contract of civil air transport may choose the law applicable to the contract unless otherwise provided by law. In case the parties to the contract have made no such choice， the law of the State most closely related to the contract shall apply.

Article 189 The law of the place where an act of tort occurred shall be applicable to indemnity for damage caused by a civil aircraft to third parties on the surface.

The law of the location of the court which takes up the case shall be applicable to the indemnity for damage caused by civil aircraft over the high seas to third parties on the surface.

Article 190 The application of foreign laws or international practices in accordance with the provisions of this Chapter shall in no way violate the public interest of the People's Republic of China.

Chapter XV Legal Liability

Article 191 Where a person seized an aircraft by violence， threats thereof or other means， his criminal responsibility shall be investigated in accordance with the Decision Regarding the Punishment of the Criminals Engaged in Aircraft Hijacking.

Article 192 Where a person endangers flight safety by using violence against a person on board a civil aircraft in flight， but without resulting in serious consequences， his criminal responsibility shall be investigated in accordance with the provisions of Article 105 of the Criminal Law； if grave consequences result from such act， his criminal responsibility shall be investigated in accordance with the provisions of Article 106 of the Criminal Law.

Article 193 A person who， in violation of the provisions of this Law， conceals and brings explosives， detonators or other dangerous articles while flying in a civil aircraft， or consigns dangerous articles for shipment under the name of non-dangerous articles， but without resulting in serious consequences， shall be investigated for his criminal responsibility by applying mutatis mutandis the provisions of Article 163 of the Criminal Law； if grave consequences result from such crime， his criminal responsibility shall be investigated in accordance with the provisions of Article 110 of the Criminal Law.

An enterprise or institution which commits the crime prescribed in the preceding paragraph shall be subject to a fine， and criminal responsibilities shall be investigated against the person directly in charge and other personnel directly responsible for the crime in accordance with the provisions of the preceding paragraph.

A person who conceals and brings firearms， ammunition and controlled knives while flying in a civil aircraft shall be investigated for his criminal responsibility by applying mutatis mutandis the provisions of Article 163 of the Criminal Law.

Article 194 Where a public air transport enterprise carries dangerous articles in violation of the provisions of Article 101 of this Law， the competent civil aviation authority under the State Council shall confiscate its unlawful earnings and may also impose a fine of not more than 100% of the unlawful earnings.

Where a public air transport enterprise commits an act described in the preceding paragraph and thereby creates a serious accident， its unlawful earnings shall be confiscated and a fine shall be imposed； and criminal responsibilities shall be investigated against the person directly in charge and other personnel directly responsible for the crime in accordance with the provisions of Article 115 of the Criminal Law.

Article 195 A person who deliberately places or instigates another person to place dangerous articles on board a civil aircraft in use， sufficient to destroy the civil aircraft and endanger flight safety but without resulting in serious consequences， shall be investigated for his criminal responsibility in accordance with the provisions of Article 107 of the Criminal Law； if grave consequences result from such crime， he shall be investigated for criminal responsibility in accordance with the provisions of Article 110 of the Criminal Law.

Article 196 A person who deliberately transmits false information and disturbs the normal order of flight， resulting in serious losses to public or private property， shall be investigated for criminal responsibility in accordance with the provisions of Article 158 of the Criminal Law.

Article 197 A person who steals or deliberately damages or removes navigational facilities in use and thereby creates danger to flight safety， sufficient to cause the fall or destruction of the civil aircraft but without resulting in serious consequences， shall be investigated for criminal responsibility in accordance with the provisions of Article 108 of the Criminal Law； if grave consequences result from such crime， he shall be investigated for criminal responsibility in accordance with the provisions of Article 110 of the Criminal Law.

Article 198 A person who assembles a crowd to disturb the order in a civil airport shall be investigated for his criminal responsibility in accordance with the provisions of Article 159 of the Criminal Law.

Article 199 Where an airman neglects his duty or violates the rules and regulations， thereby creating a serious flight accident resulting in grave consequences， his criminal responsibility shall be investigated in accordance with the provisions of Article 187 or by applying mutatis mutandis the provisions of Article 114 of the Criminal Law respectively.

Article 200 A person who violates the provisions of this Law， not seriously enough for criminal punishment but should be subject to penalty for public security， shall be punished in accordance with the Regulations on Administrative Penalties for Public Security.

Article 201 Where in violation of the provisions of Article 37 of this Law， a civil aircraft flies without the certificate of airworthiness， or a foreign civil aircraft on lease flies without having its certificate of airworthiness， issued by the State in which the nationality of the aircraft was originally registered， examined and rendered valid by the State Council， or without having a new certificate of airworthiness issued therefor by the said authority， the competent civil aviation authority under the State Council shall order it to stop flying， confiscate the unlawful earnings， and may also impose a fine of more than 100% but not exceeding 500% of the unlawful earnings； in case there is no unlawful earnings， a fine of not less than 100，000 yuan but not more than 1，000，000 yuan shall be imposed.

Where a certificate of airworthiness has lost its effect or a flight was conducted beyond the scope prescribed in the certificate of airworthiness， the punishment prescribed in the preceding paragraph shall apply.

Article 202 Where a person， in violation of the provisions of Article 34 and paragraph 2 of Article 36 of this Law， carries out the production of civil aircraft and its engines， propellers or on-board equipment without obtaining type certificate and type validation certificate， the competent civil aviation authority under the State Council shall order him to stop such production， confiscate his unlawful earnings and may also impose on him a fine of not more than 100% of his unlawful earnings； in case there is no unlawful earnings， a fine of not less than 50，000 yuan but not more than 500，000 yuan shall be imposed.

Article 203 Where a person， in violation of the provisions of Article 35 of this Law， is engaged in the activities of production and maintenance without obtaining production certificate and maintenance certificate or， in violation of the provisions of Article 92 and paragraph 2 of Article 147 of this Law， is engaged in public air transport or general aviation operations for commercial purposes without obtaining a public air transport operating licence or a general aviation operating licence， the competent civil aviation authority under the State Council shall order him to stop such production， maintenance or operations.

Article 204 Where an enterprise having obtained the production certificate and maintenance certificate prescribed in Article 35 of this Law creates a serious accident because of the problem in the quality of production and maintenance， the competent civil aviation authority under the State Council may cancel its production certificate or maintenance certificate.

Article 205 Where a person， in violation of the provisions of Article 40 of this Law， is engaged in civil aviation activities without obtaining the corresponding airman's licence and physical examination certificate， the competent civil aviation authority under the State Council shall order him to stop such activities， no such licence and certificate shall be issued within the time limit prescribed by the competent civil aviation authority under the State Council， and a fine of not more than 200，000 yuan shall be imposed on the unit that the person belongs to.

Article 206 In one of the following circumstances in which the law is violated， the competent civil aviation authority under the State Council hall punish the pilot-in-command by warning or by withholding his licence for a period of one to six months， or under aggravating circumstances， punish him by cancelling his licence：

（1） The pilot-in-command， in violation of the provisions of paragraph 1 of Article 45 of this Law， takes off without carrying out an inspection of the civil aircraft； or

（2） A civil aircraft， in violation of the provisions of Article 75 of this Law， fails to follow the air route and to fly at the altitude specified by the air traffic unit， or in violation of the provisions of Article 79 of this Law， flies across the airspace over a city.

Article 207 Where a civil aircraft， in violation of the provisions of Article 74 of this Law， conducts flight activities without the approval of the air traffic control unit， the competent civil aviation authority under the State Council shall order it to stop flying， and impose a fine on the owner or lessee of the civil aircraft of not less than 10，000 yuan but not more than 100，000 yuan； and punish the pilot-in-command of the civil aircraft by warning or by withholding his licence for a period of one to six months， or under aggravating circumstances， punish him by cancelling his licence.

Article 208 Where the pilot-in-command of a civil aircraft or another member of the crew commits one of the following acts， the competent civil aviation authority under the State Council shall punish him by warning or by withholding his licence for a period of one to six months； if the act listed in sub-paragraph （2） or （3） is committed， he shall be punished by having his licence cancelled：

（1） Failure to carry on his person licence and physical examination certificate in performing a flight mission as required by the provisions of Article 41 of this Law； or

（2） Leaving the civil aircraft in distress in violation of the provisions of Article 48 of this Law；

（3） Performing a flight mission in violation of the provisions of paragraph 2 of Article 77 of this Law.

Article 209 Where some articles are dropped or sprayed from a civil aircraft in flight in violation of the provisions of Article 80 of this Law， the competent civil aviation authority under the State Council shall give a warning， and may impose a fine of not less than 2，000 yuan but not more than 20，000 yuan on the person directly responsible.

Article 210 Where a civil airport is opened to traffic without obtaining an airport operating licence in violation of the provisions of Article

62 of this Law， the competent civil aviation authority under the State Council shall order it to stop its opening to traffic， confiscate its unlawful earnings， and may impose a fine of not exceeding 100% of the unlawful earnings.

Article 211 Where a public air transport enterprise or a general aviation enterprise violates the provisions of this Law， in circumstances of a serious nature， the competent civil aviation authority under the State Council may， in addition to the punishment prescribed by this Law， cancel its operating licence. If the operating licence of such enterprise is cancelled， the administrative department for industry and commerce shall cancel its business licence.

Article 212 The working personnel of the competent civil aviation authority under the State Council and of regional civil aviation administrative organs， who neglect their duties， abuse their powers， practise favouritism and embezzlement， if the case constitutes a crime， shall be investigated for criminal responsibilities according to law； if the case does not constitute a crime， they shall be subject to administrative sanctions according to law.

Chapter XVI Supplementary Provisions

Article 213 “Unit of account” mentioned in this Law refers to the Special Drawing Right as defined by the International Monetary Fund； its equivalent in Renminbi shall be the amount calculated in terms of the conversion rate from the Special Drawing Right of the International Monetary Fund to Renminbi as prescribed by the competent State foreign exchange authority at the date of the judgement of the court， the date of the award of arbitration agency or the date agreed between the parties concerned.

Article 214 This Law shall go into effect as of March 1， 1996.

（In case of discrepancy between the English translation and the original Chinese text， the Chinese text shall prevail. ——Tr.）