Chapter V Contract of Carriage of Passengers by Sea

Article 107 A contract of carriage of passengers by sea is a contract whereby the carrier undertakes to carry passengers and their luggage by sea from one port to another by ships suitable for that purpose against payment of fare by the passengers.

Article 108 For the purposes of this Chapter：

（1） “Carrier” means the person by whom or in whose name a contract of carriage of passengers by sea has been entered into with the passengers；

（2） “Actual carrier” means the person by whom the whole or part of the carriage of passengers has been performed as entrusted by the carrier， including those engaged in such carriage under a subcontract.

（3） “Passenger” means a person carried under a contract of carriage of passengers by sea. With the consent of the carrier， a person supervising the carriage of goods aboard a ship covered by a contract of carriage of goods is regarded as a passenger；

（4） “Luggage” means any article or vehicle shipped by the carrier under the contract of carriage of passengers by sea， with the exception of live animals.

（5） “Cabin luggage” means the luggage which the passenger has in his cabin or is otherwise in his possession， custody or control.

Article 109 The provisions regarding the responsibilities of the carrier as contained in this Chapter shall be applicable to the actual carrier， and the provisions regarding the responsibilities of the servant or agent of the carrier as contained in this Chapter shall be applicable to the servant or agent of the actual carrier.

Article 110 The passage ticket serves as an evidence that a contract of carriage of passengers by sea has been entered into.

Article 111 The period of carriage for the carriage of passengers by sea commences from the time of embarkation of the passengers and terminates at the time of their disembarkation， including the period during which the passengers are transported by water from land to the ship or vice versa， if such cost of transport is included in the fare. However， the period of carriage does not include the time when the passengers are at a marine terminal or station or on a quay or in or on any other port installations.

The period of carriage for the cabin luggage of the passengers shall be the same as that stipulated in the preceding paragraph. The period of carriage for luggage other than the cabin luggage commences from the time when the carrier or his servant or agent receives it into his charge and terminates at the time when the carrier or his servant or agent redelivers it to the passengers.

Article 112 A passenger travelling without a ticket or taking a higher class berth than booked or going beyond the distance paid for shall pay for the fare or the excess fare as required by relevant regulations， and the carrier may， according to the relevant regulations， charge additional fare. Should any passenger refuse to pay， the Master is entitled to order him to disembark at a suitable place and the carrier has the right of recourse against him.

Article 113 No passenger may take on board or pack in their luggage contraband goods or any article of an inflammable， explosive， poisonous， corrosive or radioactive nature or other dangerous goods that would endanger the safety of life and property on board.

The carrier may have the contraband or dangerous goods brought on board by the passenger or packed in his luggage in breach of the provisions of the preceding paragraph discharged， destroyed or rendered innocuous at any time and at any place or sent over to the appropriate authorities， without being liable for compensation.

The passenger shall be liable for compensation if any loss or damage occurs as a result of his breach of the provisions of paragraph 1 of this Article.

Article 114 During the period of carriage of the passengers and their luggage as provided for in Article 111 of this Code， the carrier shall be liable for the death of or personal injury to passengers or the loss of or damage to their luggage resulting from accidents caused by the fault of the carrier or his servant or agent committed within the scope of his employment or agency.

The claimant shall bear the burden of proof regarding the fault of the carrier or his servant or agent， with the exception， however， of the circumstances specified in paragraphs 3 and 4 of this Article.

If the death of or personal injury to the passengers or loss of or damage to the passengers' cabin luggage occurred as a result of shipwreck， collision， stranding， explosion， fire or the defect of the ship， it shall be presumed that the carrier or his servant or agent has committed a fault， unless proof to the contrary has been given by the carrier or his servant or agent.

As to any loss of or damage to the luggage other than the passenger's cabin luggage， unless the carrier or his servant or agent proves to the contrary， it shall be presumed that the carrier or his servant or agent has committed a fault， no matter how the loss or damage was caused.

Article 115 If it is proved by the carrier that the death of or personal injury to the passenger or the loss of or damage to his luggage was caused by the fault of the passenger himself or the faults of the carrier and the passenger combined， the carrier's liability may be exonerated or appropriately mitigated.

If it is proved by the carrier that the death of or personal injury to the passenger or the loss of or damage to the passenger's luggage was intentionally caused by the passenger himself， or the death or personal injury was due to the health condition of his， the carrier shall not be liable therefor.

Article 116 The carrier shall not be liable for any loss of or damage to the monies， gold， silver， jewellery， negotiable securities or other valuables of the passengers.

If the passenger has entrusted the above-mentioned valuables to the safe-keeping of the carrier under an agreement for that purpose， the carrier shall be liable for compensation in accordance with the provisions of Article 117 of this Code. Where the limitation of liability agreed upon between the carrier and the passenger in writing is higher than that set out in Article 117 of this Code， the carrier shall make the compensation in accordance with that higher amount.

Article 117 Except the circumstances specified in paragraph 4 of this Article， the limitation of liability of the carrier under each carriage of passengers by sea shall be governed by the following：

（1） For death of or personal injury to the passenger： not exceeding 46，666 Units of Account per passenger；

（2） For loss of or damage to the passengers' cabin luggage： not exceeding 833 Units of Account per passenger；

（3） For loss of or damage to the passengers' vehicles including the luggage carried therein： not exceeding 3，333 Units of Account per vehicle；

（4） For loss of or damage to luggage other than those described in subparagraphs （2） and （3） above： not exceeding 1，200 Units of Account per passenger.

An agreement may be reached between the carrier and the passengers with respect to the deductibles applicable to the compensation for loss of or damage to the passengers' vehicles and luggage other than their vehicles. However， the deductible with respect to the loss of or damage to the passengers' vehicles shall not exceed 117 Units of Account per vehicle， whereas the deductible for the loss of or damage to the luggage other than the vehicle shall not exceed 13 Units of Account per piece of luggage per passenger. In calculating the amount of compensation for the loss of or damage to the passenger's vehicle or the luggage other than the vehicle， deduction shall be made of the agreed deductibles the carrier is entitled to.

A higher limitation of liability than that set out in sub-paragraph （1） above may be agreed upon between the carrier and the passenger in writing.

The limitation of liability of the carrier with respect to the carriage of passengers by sea between the ports of the People's Republic of China shall be fixed by the competent authorities of transport and communications under the State Council and implemented after its being submitted to and approved by the State Council.

Article 118 If it is proved that the death of or personal injury to the passenger or the loss of or damage to the passenger's luggage resulted from an act or omission of the carrier done with the intent to cause such loss or damage or recklessly and with knowledge that such death or personal injury or such loss or damage would probably result， the carrier shall not invoke the provisions regarding the limitation of liability contained in Articles 116 and 117 of this Code.

If it is proved that the death of or personal injury to the passenger or the loss of or damage to the passenger's luggage resulted from an act or omission of the servant or agent of the carrier done with the intent to cause such loss or damage or recklessly and with knowledge that such death or personal injury or such loss or damage would probably result， the servant or agent of the carrier shall not invoke the provisions regarding the limitation of liability contained in Articles 116 and 117 of this Code.

Article 119 In case of apparent damage to the luggage， the passenger shall notify the carrier or his servant or agent in writing according to the following：

（1） Notice with respect to cabin luggage shall be made before or at the time of his embarkation；

（2） Notice regarding luggage other than cabin luggage shall be made before or at the time of redelivery thereof.

If the damage to the luggage is not apparent and it is difficult for the passenger to discover such damage at the time of his disembarkation or of the redelivery of the luggage， or if the luggage has been lost， the passenger shall notify the carrier or his servant or agent in writing within 15 days from the next day of disembarkation of the passenger or of there delivery of the luggage.

If the passenger fails to send in the notice in writing in time in accordance with the provisions of sub-paragraphs （1）and （2） of this Article， it shall be presumed that the luggage has been received undamaged， unless proof to the contrary is made.

Where the luggage has been jointly surveyed or inspected by the passenger and the carrier at the time of redelivery thereof， the above mentioned notice need not be given.

Article 120 With regard to the claims made to the carrier's servant or agent， such servant or agent shall be entitled to invoke the provisions regarding defence and limitation of liability contained in Articles 115， 116 and 117 of this Code if such servant or agent proves that his act or omission was within the scope of his employment or agency.

Article 121 Where the performance of the carriage of passengers or part thereof has been entrusted by the carrier to an actual carrier， the carrier shall， as stipulated in this Chapter， remain liable for the entire carriage. Where the carriage is performed by the actual carrier， the carrier shall be liable for the act or omission of the actual carrier or the act or omission of his servant or agent within the scope of his employment or agency.

Article 122 Any special agreement under which the carrier assumes obligations not provided for in this Chapter or waives the rights conferred by this Chapter shall be binding upon the actual carrier where the actual carrier has expressly agreed in writing to the contents thereof. Such a special agreement shall be binding upon the carrier whether the actual carrier has agreed to its contents or not.

Article 123 Where both the carrier and the actual carrier are liable for compensation， they shall be liable jointly and severally within the scope of such liability.

Article 124 Where separate claims have been brought against the carrier， the actual carrier and their servants or agents with respect to the death of or personal injury to the passengers or the loss of or damage to their luggage， the aggregate amount of compensation shall not be in excess of the limitation prescribed in Article 117 of this Code.

Article 125 The provisions of Articles 121 through 124 of this Code shall not affect the right of recourse between the carrier and the actual carrier.

Article 126 Any of the following clauses contained in a contract of carriage of passengers by sea shall be null and void：

（1） Any clause that exonerates the statutory responsibility of the carrier in respect of the passenger；

（2） Any clause that reduces the limitation of liability of the carrier as contained in this Chapter；

（3） Any clause that contains provisions contrary to those of this Chapter concerning burden of proof；

（4） Any clause that restricts the right of claim of the passenger.

The nullity and void ness of the clauses set out in the preceding paragraph shall not prejudice the validity of the other clauses of the contract.

Chapter VI Charter Parties

Section 1 Basic Principles

Article 127 The provisions concerning the rights and obligations of the ship owner and the charterer in this Chapter shall apply only when there are no stipulations or no different stipulations in this regard in the charter party.

Article 128 Charter parties including time charter parties and bare boat charter parties shall be concluded in writing.

Section 2 Time Charter Party

Article 129 A time charter party is a contract under which the ship owner provides a designated manned ship to the charterer， and the charterer employs the ship during the contractual period for the agreed service against payment of hire.

Article 130 A time charter party mainly contains the name of the shipowner， the name of the charterer； the name， nationality， class， tonnage， capacity， speed and fuel consumption of the ship； the trading area； the agreed service， the contractual period， the time， place and conditions of delivery and redelivery of the ship； the hire and the way of its payment and other relevant matters.

Article 131 The shipowner shall deliver the ship within the time agreed upon in the charter party.

Where the shipowner acts against the provisions of the preceding paragraph， the charterer is entitled to cancel the charter. However， if the shipowner has notified the charterer of the anticipated delay in delivery and has given an estimated time of arrival of the ship at the port of delivery， the charterer shall notify the shipowner， within 48 hours of the receipt of such notice from the shipowner， of his decision whether to cancel the charter or not.

The shipowner shall be liable for the charterer's loss resulting from the delay in delivery of the ship due to the shipowner's fault.

Article 132 At the time of delivery， the shipowner shall exercise due diligence to make the ship seaworthy. The ship delivered shall be fit for the intended service.

Where the shipowner acts against the provisions in the preceding paragraph， the charterer shall be entitled to cancel the charter and claim any losses resulting therefrom.

Article 133 During the charter period， if the ship is found at variance with the seaworthiness or the other conditions agreed upon in the charter， the shipowner shall take all reasonable measures to have them restored as soon as possible.

Where the ship has not been operated normally for 24 consecutive hours due to its failure to maintain the seaworthiness or the other conditions as agreed upon， the charterer shall not pay the hire for the operating time so lost， unless such failure was caused by the charterer.

Article 134 The charterer shall guarantee that the ship shall be employed in the agreed maritime transport between the safe ports or places within the trading area agreed upon.

If the charterer acts against the provisions of the preceding paragraph， the shipowner is entitled to cancel the charter and claim any losses resulting therefrom.

Article 135 The charterer shall guarantee that the ship shall be employed to carry the lawful merchandise agreed.

Where the ship is to be employed by the charterer to carry live animals or dangerous goods， a prior consent of the shipowner is required.

The charterer shall be liable for any loss of the shipowner resulting from the charterer's violation of the provisions of paragraph 1 or paragraph 2 of this Article.

Article 136 The charterer shall be entitled to give the Master instructions with respect to the operation of the ship. However， such instructions shall not be inconsistent with the stipulations of the time charter.

Article 137 The charterer may sublet the ship under charter， but he shall notify the shipowner of the sublet in time. The rights and obligations agreed upon in the head charter shall not be affected by the sub-charter.

Article 138 Where the ownership of the ship under charter has been transferred by the shipowner， the rights and obligations agreed upon under the original charter shall not be affected. However， the shipowner shall inform the charterer thereof in time. After such transfer， the transferee and the charterer shall continue to perform the original charter.

Article 139 Should the ship be engaged in salvage operations during the charter period， the charterer shall be entitled to half of the amount of the payment for salvage operations after deducting therefrom the salvage expenses， compensation for damage， the portion due to crew members and other relevant costs.

Article 140 The charterer shall pay the hire as agreed upon in the charter. Where the charterer fails to pay the hire as agreed upon， the shipowner shall be entitled to cancel the charter party and claim any losses resulting therefrom.

Article 141 In case the charterer fails to pay the hire or other sums of money as agreed upon in the charter， the shipowner shall have a lien on the charterer's goods， other property on board and earnings from the sub-charter.

Article 142 When the charterer redelivers the ship to the shipowner， the ship shall be in the same good order and condition as it was at the time of delivery， fair wear and tear excepted.

Where， upon redelivery， the ship fails to remain in the same good order and condition as it was at the time of delivery， the charterer shall be responsible for rehabilitation or for compensation.

Article 143 If， on the basis of a reasonable calculation， a ship may be able to complete its last voyage at around the time of redelivery specified in the charter and probably thereafter， the charterer is entitled to continue to use the ship in order to complete that voyage even if its time of redelivery will be overdue. During the extended period， the charterer shall pay the hire at the rate fixed by the charter， and， if the current market rate of hire is higher than that specified in the charter， the charterer shall pay the hire at the current market rate.

Section 3 Bare boat Charter Party

Article 144 A bare boat charter party is a charter party under which the shipowner provides the charterer with an unmanned ship which the charterer shall possess， employ and operate within an agreed period and for which the charterer shall pay the shipowner the hire.

Article 145 A bare boat charter party mainly contains the name of the shipowner and the name of the charterer； the name， nationality， class， tonnage and capacity of the ship； the trading area， the employment of the ship and the charter period； the time， place and condition of delivery and redelivery； the survey， maintenance and repair of the ship； the hire and its payment； the insurance of the ship； the time and condition for the termination of the charter and other relevant matters.

Article 146 The shipowner shall deliver the ship and its certificates to the charterer at the port or place and time as stipulated in the charter party. At the time of delivery， the shipowner shall exercise due diligence to make the ship sea worthy. The ship delivered shall be fit for the agreed service.

Where the shipowner acts against the provisions of the preceding paragraph， the charterer shall be entitled to cancel the charter and claim any losses resulting therefrom.

Article 147 The charterer shall be responsible for the maintenance and repair of the ship during the bare boat charter period.

Article 148 During the bare boat charter period， the ship shall be insured， at the value agreed upon in the charter and in the way consented to by the shipowner， by the charterer at his expense.

Article 149 During the bare boat charter period， if the charterer's possession， employment or operation of the ship has affected the interests of the shipowner or caused any losses thereto， the charterer shall be liable for eliminating the harmful effect or compensating for the losses.

Should the ship be arrested due to any disputes over its ownership or debts owed by the shipowner， the ship owner shall guarantee that the interest of the charterer is not affected. The shipowner shall be liable for compensation for any losses suffered by the charterer thereby.

Article 150 During the bare boat charter period， the charterer shall not assign the rights and obligations stipulated in the charter or sublet the ship under bare boat charter without the shipowner's consent in writing.

Article 151 The shipowner shall not establish any mortgage of the ship during the bare boat charter period without the prior consent in writing by the charterer.

Where the shipowner acts against the provisions of the preceding paragraph and thereby causes losses to the charterer， the shipowner shall be liable for compensation.

Article 152 The charterer shall pay the hire as stipulated in the charter. In default of payment by the charterer for seven consecutive days or more after the time as agreed in the charter for such payment， the shipowner is entitled to cancel the charter without prejudice to any claim for the loss arising from the charterer's default.

Should the ship be lost or missing， payment of hire shall cease from the day when the ship was lost or last heard of. Any hire paid in advance shall be refunded in proportion.

Article 153 The provisions of Article 134， paragraph 1 of Article 135， Article 142 and Article 143 of this Code shall be applicable to bare boat charter parties.

Article 154 The ownership of a ship under bare boat charter containing a lease purchase clause shall be transferred to the charterer when the charterer has paid off the lease purchase price to the shipowner as stipulated in the charter.

Chapter VII Contract of Sea Towage

Article 155 A contract of sea towage is a contract whereby the tug owner undertakes to tow an object by sea with a tug from one place to another and the tow party pays the towage.

The provisions of this Chapter shall not be applicable to the towage service rendered to ships within the port area.

Article 156 A contract of sea towage shall be made in writing. Its contents shall mainly include name and address of the tug owner， name and address of the tow party， name and main particulars of the tug and name and main particulars of the object to be towed， horse power of the tug， place of commencement of the towage and the destination， the date of commencement of the towage， towage price and the way of payment thereof， as well as other relevant matters.

Article 157 The tug owner shall， before and at the beginning of the towage， exercise due diligence to make the tug seaworthy and tow worthy and to properly man the tug and equip it with gears and tow lines and to provide all other necessary supplies and appliances for the intended voyage.

The tow party shall， before and at the beginning of the towage， make all necessary preparations therefor and shall exercise due diligence to make the object to be towed tow worthy and shall give a true account of the object to be towed and provide the certificate of tow worthiness and other documents issued by the relevant survey and inspection organizations.

Article 158 If before the commencement of the towage service， due to force majeure or other causes not attributable to the fault of either party， the towage contract could not be performed， either party may cancel the contract and neither shall be liable to the other. In such event， the towage price that had already been paid shall be returned to the tow party by the tug owner， unless otherwise agreed upon in the towage contract.

Article 159 If after the commencement of the towage service， due to force majeure or other causes not attributable to the fault of either party， the towage contract could not be performed， either party may cancel the towage contract and neither shall be liable to the other.

Article 160 Where the object towed could not reach its destination due to force majeure or other causes not attributable to the fault of either party， unless the towage contract provides otherwise， the tug owner may deliver the object towed to the tow party or its agent at a place near the destination or at a safe port or an anchorage chosen by the Master of the tug， and the contract of towage shall be deemed to have been fulfilled.

Article 161 Where the tow party fails to pay the towage price or other reasonable expenses as agreed， the tug owner shall have a lien on the object towed.

Article 162 In the course of the sea towage， if the damage suffered by the tug owner or the tow party was caused by the fault of one of the parties， the party in fault shall be liable for compensation. If the damage was caused by the faults of both parties， both parties shall be liable for compensation in proportion to the extent of their respective faults.

Notwithstanding the provisions of the preceding paragraph， the tug owner shall not be liable if he proves that the damage suffered by the tow party is due to one of the following causes：

（1） Fault of the Master or other crew members of the tug or the pilot or other servants or agents of the tug owner in the navigation and management of the tug：

（2） Fault of the tug in saving or attempting to save life or property at sea.

The provisions of this Article shall only apply if and when there are no provisions or no different provisions in this regard in the sea towage contract.

Article 163 If death of or personal injury to a third party or damage to property thereof has occurred during the sea towage due to the fault of the tug owner or the tow party， the tug owner and the tow party shall be liable jointly and severally to that third party. Except as otherwise provided for in the towage contract， the party that has jointly and severally paid a compensation in an amount exceeding the proportion for which it is liable shall have the right of recourse against the other party.

Article 164 Where a tug owner towing a barge owned or operated by him to transport goods by sea from one port to another， it shall be deemed as an act of carriage of goods by sea.

Chapter VIII Collision of Ships

Article 165 Collision of ships means an accident arising from the touching of ships at sea or in other navigable waters adjacent thereto.

Ships referred to in the preceding paragraph shall include those nonmilitary or public service ships or craft that collide with the ships mentioned in Article 3 of this Code.

Article 166 After a collision， the Master of each of the ships in collision is bound， so far as he can do so without serious danger to his ship and persons on board to render assistance to the other ship and persons on board.

The Master of each of the ships in collision is likewise bound so far as possible to make known to the other ship the name of his ship， its port of registry， port of departure and port of destination.

Article 167 Neither of the parties shall be liable to the other if the collision is caused by force majeure or other causes not attributable to the fault of either party or if the cause thereof is left in doubt.

Article 168 If the collision is caused by the fault of one of the ships， the one in fault shall be liable therefor.

Article 169 If the colliding ships are all in fault， each ship shall be liable in proportion to the extent of its fault； if the respective faults are equal in proportion or it is impossible to determine the extent of the proportion of the respective faults， the liability of the colliding ships shall be apportioned equally.

The ships in fault shall be liable for the damage to the ship， the goods and other property on board pursuant to the proportions prescribed in the preceding paragraph. Where damage is caused to the property of a third party， the liability for compensation of any of the colliding ships shall not exceed the proportion it shall bear.

If the ships in fault have caused loss of life or personal injury to a third party， they shall be jointly and severally liable therefor. If a ship has paid an amount of compensation in excess of the proportion prescribed in paragraph 1 of this Article， it shall have the right of recourse against the other ship（s） in fault.

Article 170 Where a ship has caused damage to another ship and persons， goods or other property on board that ship， either by the execution or non execution of a manoeuvre or by the nonobservance of navigation regulations， even if no collision has actually occurred， the provisions of this Chapter shall apply.

Chapter IX Salvage at Sea

Article 171 The provisions of this Chapter shall apply to salvage operations rendered at sea or any other navigable waters adjacent thereto to ships and other property in distress.

Article 172 For the purposes of this Chapter：

（1） “Ship” means any ship referred to in Article 3 of this Code and any other non-military， public service ship or craft that has been involved in a salvage operation therewith；

（2） “Property” means any property not permanently and intentionally attached to the shoreline and includes freight at risk.

（3） “Payment” means any reward， remuneration or compensation for salvage operations to be paid by the salved party to the salvor pursuant to the provisions of this Chapter.

Article 173 The provisions of this Chapter shall not apply to fixed or floating platforms or mobile offshore drilling units when such platforms or units are on location engaged in the exploration， exploitation or production of sea-bed mineral resources.

Article 174 Every Master is bound， so far as he can do so without serious danger to his ship and persons on board， to render assistance to any person in danger of being lost at sea.

Article 175 A contract for salvage operations at sea is concluded when an agreement has been reached between the salvor and the salved party regarding the salvage operations to be undertaken.

The Master of the ship in distress shall have the authority to conclude a contract for salvage operations on behalf of the shipowner. The Master of the ship in distress or its owner shall have the authority to conclude a contract for salvage operations on behalf of the owner of the property on board.

Article 176 The salvage contract may be modified by a judgment of the court which has entertained the suit brought by either party， or modified by an award of the arbitration organization to which the dispute has been submitted for arbitration upon the agreement of the parties， under any of the following circumstances：

（1） The contract has been entered into under undue influence or the influence of danger and its terms are obviously inequitable；

（2） The payment under the contract is in an excessive degree too large or too small for the services actually rendered.

Article 177 During the salvage operation， the salvor shall owe a duty to the salved party to：

（1） Carry out the salvage operation with due care；

（2） Exercise due care to prevent or minimize the pollution damage to the environment；

（3） Seek the assistance of other salvors where reasonably necessary；

（4） Accept the reasonable request of the salved party to seek the participation in the salvage operation of other salvors. However， if the request is not well founded， the amount of payment due to the original salvor shall not be affected.

Article 178 During the salvage operation， the party salved is under an obligation to the salvor to：

（1） Cooperate fully with the salvor；

（2） Exercise due care to prevent or minimize the pollution damage to the environment；

（3） Promptly accept the request of the salvor to take delivery of the ship or property salved when such ship or property has been brought to a place of safety.

Article 179 Where the salvage operations rendered to the distressed ship and other property have had a useful result， the salvor shall be entitled to a reward. Except as otherwise provided for by Article 182 of this Code or by other laws or the salvage contract， the salvor shall not be entitled to the payment if the salvage operations have had no useful result.

Article 180 The reward shall be fixed with a view to encouraging salvage operations， taking into full account the following criteria：

（1） Value of the ship and other property salved；

（2） Skill and efforts of the salvors in preventing or minimizing the pollution damage to the environment；

（3） Measure of success obtained by the salvors；

（4） Nature and extent of the danger；

（5） Skill and efforts of the salvors in salving the ship， other property and life；

（6） Time used and expenses and losses incurred by the salvors；

（7） Risk of liability and other risks run by the salvors or their equipment；

（8） Promptness of the salvage services rendered by the salvors；

（9） Availability and use of ships or other equipment intended for salvage operations；

（10） State of readiness and efficiency of the salvors' equipment and the value thereof.

The reward shall not exceed the value of the ship and other property salved.

Article 181 The salved value of the ship and other property means the assessed value of the ship and other property salved or the proceeds of the sale thereof， after deduction of the relevant taxes and customs dues， quarantine expenses， inspection charges as well as expenses incurred in connection with the discharge， storage， assessment of the value and the sale thereof.

The value prescribed in the preceding paragraph does not include the value of the salved personal belongings of the crew and that of the cabin luggage of the passengers.

Article 182 If the salvor has carried out the salvage operations in respect of a ship which by itself or its goods threatened pollution damage to the environment and has failed to earn a reward under Article 180 of this Code at least equivalent to the special compensation assessable in accordance with this Article， he shall be entitled to special compensation from the owner of that ship equivalent to his expenses as herein defined.

If the salvor has carried out the salvage operations prescribed in the preceding paragraph and has prevented or minimized pollution damage to the environment， the special compensation payable by the owner to the salvor under paragraph 1 of this Article may be increased by an amount up to a maximum of 30% of the expenses incurred by the salvor. The court which has entertained the suit or the arbitration organization may， if it deems fair and just and taking into consideration the provisions of paragraph 1 of Article 180 of this Code， render a judgment or an award further increasing the amount of such special compensation， but in no event shall the total increase be more than 100% of the expenses incurred by the salvor.

The salvor's expenses referred to in this Article means the salvor's out of pocket expenses reasonably incurred in the salvage operation and the reasonable expenses for the equipment and personnel actually used in the salvage operation. In determining the salvor's expenses， the provisions of subparagraphs （8）， （9） and （10） of paragraph 1 of Article 180 of this Code shall be taken into consideration.

Under all circumstances， the total special compensation provided for in this Article shall be paid only if such compensation is greater than the reward recoverable by the salvor under Article 180 of this Code， and the amount to be paid shall be the difference between the special compensation and the reward.

If the salvor has been negligent and has thereby failed to prevent or minimize the pollution damage to the environment， the salvor may be totally or partly deprived of the right to the special compensation.

Nothing in this Article shall affect the right of recourse on the part of the shipowner against any other parties salved.

Article 183 The salvage reward shall be paid by the owners of the salved ship and other property in accordance with the respective proportions which the salved values of the ship and other property bear to the total salved value.

Article 184 The distribution of salvage reward among the salvors taking part in the same salvage operation shall be made by agreement among such salvors on the basis of the criteria set out in Article 180 of this Code； failing such agreement， the matter may be brought before the court hearing the case for judgment， or， upon the agreement of the parties， submitted to the arbitration organization for an award.

Article 185 The salvors of human life may not demand any remuneration from those whose lives are saved. However， salvors of human life are entitled to a fair share of the payment awarded to the salvors for salving the ship or other property or for preventing or minimizing the pollution damage to the environment.

Article 186 The following salvage operations shall not be entitled to remuneration：

（1） The salvage operation is carried out as a duty to normally perform a towage contract or other service contract， with the exception， however， of providing special services beyond the performance of the above said duty.

（2） The salvage operation is carried out in spite of the express and reasonable prohibition on the part of the Master of the ship in distress， the owner of the ship in question and the owner of the other property.

Article 187 Where the salvage operations have become necessary or more difficult due to the fault of the salvor or where the salvor has committed fraud or other dishonest conduct， the salvor shall be deprived of the whole or part of the payment payable to him.

Article 188 After the completion of the salvage operation， the party salved shall， at the request of the salvor， provide satisfactory security for salvage reward and other charges.

Without prejudice to the provisions of the preceding paragraph， the owner of the ship salved shall， before the release of the goods， make best endeavours to cause the owners of the property salved to provide satisfactory security for the share of the payment that they ought to bear.

Without the consent of the salvor， the ship or other property salved shall not be removed from the port or place at which they first arrived after the completion of the salvage operation， until satisfactory security has been provided with respect to the ship or other property salved， as demanded by the salvor.

Article 189 The court or the arbitration organization handling the salvor's claim for payment may， in light of the specific circumstances and under fair and just terms， decide or make an award ordering the party salved to pay on account an appropriate amount to the salvor.

On the basis of the payment on account made by the party salved in accordance with the provisions of the preceding paragraph， the security provided under Article 188 of this Code shall be reduced accordingly.

Article 190 If the party salved has neither made the payment nor provided satisfactory security for the ship and other property salved after 90 days of the salvage， the salvor may apply to the court for an order on forced sale by auction. With respect to the ship or the property salved that cannot be kept or cannot be properly kept， or the storage charge to be incurred may exceed its value， the salvor may apply for an earlier forced sale by auction.

The proceeds of the sale shall， after deduction of the expenses incurred for the storage and sale， be used for the payment in accordance with the provisions of this Code. The remainder， if any， shall be returned to the party salved， and， if there is no way to return the remainder or if the remainder has not been claimed after one year of the forced sale， it shall go to the State Treasury. In case of any deficiency， the salvor has the right of recourse against the party salved.

Article 191 The provisions of this Chapter shall apply to the salvor's right to the payment for the salvage operations carried out between the ships of the same owner.

Article 192 With respect to the salvage operations performed or controlled by the relevant competent authorities of the State， the salvors shall be entitled to avail themselves of the rights and remedies provided for in this Chapter in respect of salvage operations.

Chapter X General Average

Article 193 General average means the extraordinary sacrifice or expenditure intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the ship， goods or other property involved in a common maritime adventure.

Loss or damage sustained by the ship or goods through delay， whether on the voyage or subsequently， such as demurrage and loss of market as well as other indirect losses， shall not be admitted as general average.

Article 194 When a ship， after having been damaged in consequence of accident， sacrifice or other extraordinary circumstances， shall have entered a port or place of refuge or returned to its port or place of loading to effect repairs which are necessary for the safe prosecution of the voyage， then the port charges paid， the wages and maintenance of the crew incurred and the fuel and stores consumed during the extra period of detention in such port or place， as well as the loss or damage and charges arising from the discharge， storage， reloading and handling of the goods， fuel， stores and other property on board in order to have the repairs done shall be allowed as general average.

Article 195 Any extra expense incurred in place of another expense which would have been allowed as general average shall be deemed to be general average and so allowed， but the amount of such expense incurred shall not be in excess of the general average expense avoided.

Article 196 The onus of proof shall be upon the party claiming in general average to show that the loss or expense claimed is properly allowable as general average.

Article 197 Rights to contribution in general average shall not be affected， though the event which gave rise to the sacrifice or expenditure may have been due to the fault of one of the parties to the adventure. However， this shall not prejudice any remedies or defences which may be open against or to that party in respect of such fault.

Article 198 The amounts of sacrifice of the ship， the goods and the freight shall be respectively determined as follows：

（1） The amount of sacrifice of the ship shall be calculated on the basis of the repair cost of the ship actually paid， from which any reasonable deduction in respect of “new for old” being made. Where the ship has not been repaired after the sacrifice， the amount of sacrifice thereof shall be calculated on the basis of the reasonable reduced value of ship after the general average sacrifice. Such amount shall not exceed the estimated cost of repair.

Where the ship is an actual total loss or where the cost of repair would exceed the value of the ship after the repair， the amount of sacrifice of the ship shall be calculated on the basis of the estimated sound value of the ship， less the estimated cost of repair not allowable as general average， as well as the value of the ship after the damage.

（2） The amount of sacrifice of the goods already lost shall be calculated on the basis of the value of the goods at the time of shipment plus insurance and freight， from which the freight that need not be paid due to the sacrifice made being deducted. For the damaged goods that had already been sold before an agreement was reached on the extent of the damage sustained， the amount of sacrifice thereof shall be calculated on the basis of the difference between the value of the goods at the time of shipment plus insurance and freight， and the net proceeds of the goods so sold.

（3） The amount of sacrifice of the freight shall be calculated on the basis of the amount of loss of freight on account of the sacrifice of the goods， from which the operating expenses that ought to be paid in order to earn such freight but need not be paid because of the sacrifice shall be deducted.

Article 199 The contribution in general average shall be made in proportion to the contributory values of the respective beneficiaries.

The contributory value in general average by the ship， goods and freight shall be determined as follows：

（1） The contributory value of the ship shall be calculated on the basis of the sound value of the ship at the place where the voyage ends， from which any damage that does not come under general average sacrifice being deducted； alternately， the actual value of the ship at the place where the voyage ends， plus the amount of general average sacrifice.

（2） The contributory value of the goods shall be calculated on the basis of the value of the goods at the time of shipment plus insurance and freight， from which the damage that does not come under the general average sacrifice and the carrier's freight at risk being deducted. Where the goods had been sold before its arrival at the port of destination， its value for contribution shall be the net proceeds plus the amount of general average sacrifice.

Passenger's luggage and personal belongings shall not be included in the value for contribution. （3） The contributory value of freight shall be calculated on the basis of the amount of freight at the risk of the carrier and which the carrier is entitled to collect at the end of the voyage， less any expense incurred for the prosecution of the voyage after the general average， in order to earn the freight， plus the amount of general average sacrifice.

Article 200 Goods undeclared or wrongfully declared shall be liable for the contribution to general average， but the special sacrifice sustained by such goods shall not be allowed as general average.

Where the value of the goods has been improperly declared at a value below its actual value， the contribution to general average shall be made on the basis of their actual value and， where a general average sacrifice has occurred， the amount of sacrifice shall be calculated on the basis of the declared value.

Article 201 Interest shall be allowed on general average sacrifice and general average expenses paid on account. A commission shall be allowed for the general average expenses paid on account， except those for the wages and maintenance of the crew and fuel and store consumed.

Article 202 The contributing parties shall provide security for general average contribution at the request of the parties that have an interest therein.

Where the security has been provided in the form of cash deposits， such deposits shall be put in a bank by an average adjuster in the name of a trustee.

The provision， use and refund of the deposits shall be without prejudice to the ultimate liability of the contributing parties.

Article 203 The adjustment of general average shall be governed by the average adjustment rules agreed upon in the relevant contract. In the absence of such an agreement in the contract， the relevant provisions contained in this Chapter shall apply.