CHINA Law and Practice Contributed by: John Wang, Xu Jun, Song Jia and Zhao Yuxuan, Wang Jing & Co
However, for dangerous goods, the court would normally apply the principle of strict liability. Per the case (2016) Supreme Court Min Shen No 1271, the Supreme Court held that, for dangerous cargo, if: • the shipper, including the actual shipper and non- vessel operating common carrier, fails to notify or notifies the actual carrier inaccurately; • the actual carrier has fulfilled its duty of care for the goods; and • the loss or damage was caused by dangerous cargo that was not properly declared, the shipper shall be liable for the loss or damage resulting from the misdeclaration of dangerous cargo. 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo Time Bar The time limit for bringing a claim against the carrier for damaged or lost cargo (either for breach of con - tract or in tort) is one year, counting from the day on which the goods were delivered or should have been delivered by the carrier and within the limitation period or after the expiry thereof. If the person allegedly liable has brought a recourse claim against a third party, that claim has a time limit of 90 days, counting from the day on which the person claiming for the recourse set - tled the claim or was served with a copy of the claim documents by the court. Extension, Suspension and Discontinuance The time limit for actions for maritime disputes cannot be extended by agreement, but it can be suspended or discontinued pursuant to the CMC. Regarding suspension, Article 266 states: “Within the last six months of the limitation period if, on account of force majeure or other causes, the claims could not be made, the limitation period shall be suspended. The counting of the limitation period shall be resumed when the cause of suspension no longer exists.” Regarding the discontinuance, Article 267 states: “The limitation of time shall be discontinued as a result of the claimant bringing an action or submitting the case for arbitration or the admission to fulfil obligations by the person against whom the claim was brought. How - ever, the limitation of time shall not be discontinued
if the claimant withdraws his action or his submission for arbitration, or if his action has been rejected by a decision of the court... The limitation period shall be counted anew from the time of discontinuance.” After the CMC2025 takes effect, the provision of time- bar discontinuance will be amended, so that making a claim against the person liable would discontinue the time bar. 5. Maritime Liens and Ship Arrests 5.1 Ship Arrests The PRC has not participated in any international con - ventions regarding the arrests of vessels. The domes - tic laws that cover vessel arrests in China are: • the CMC; • the Special Maritime Procedure Law; and • the Provisions of the Supreme People’s Court on Several Issues Concerning the Application of the Law in the Arrest and Judicial Sale of Ships. 5.2 Maritime Liens PRC law differentiates between maritime liens and maritime claims. The following maritime claims are entitled to maritime liens: • crew wages, repatriation and social insurance costs, and other remuneration; • personal injury and casualty (including injury and casualty of crew) that occurred during ship opera - tion; • ship’s tonnage dues, pilotage dues, harbour dues and other port charges; • salvage; and • loss of or damage to property resulting from a tor - tious act in ship operation. However, claims for oil pollution damage caused by a ship carrying more than 2,000 tons of oil that has a valid certificate attesting that the ship has oil pol - lution liability insurance coverage or other appropri - ate financial security are not within the scope of the above-mentioned maritime liens.
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