Shipping 2025

CHINA Law and Practice Contributed by: John Wang, Xu Jun, Song Jia and Zhao Yuxuan, Wang Jing & Co

Convention on Limitation of Liability for Maritime Claims. The PRC sets a relatively low standard for limita - tions of liability for ships with a gross tonnage ranging from 20 tons to 300 tons and those exceeding 300 tons but engaged in domestic transport services and other coastal works. 2.4 Procedure and Requirements for Establishing a Limitation Fund Application for the constitution of a limitation fund can be made before or during litigation proceedings, but no later than the issuance of the first-instance judgment. The court will notify known interested parties and make an announcement to unknown inter - ested parties via public media within seven days after the application. Announcement of the constitution shall be pro - duced in public media for three days consecu - tively; the announcing period is 30 days from the last announcement. Notified parties can raise dissension against the constitution within seven days upon receipt of the notice; parties not notified can raise dissen - tion against the constitution within 30 days from the last announcement date. The court’s decision shall be made within 15 days upon receipt of dissension against the constitution. The time limit to appeal against the court’s decision is seven days upon receipt. The Appeal Court’s decision on dissension is 15 days upon receipt. If no dissent is received, the court will permit the constitution within 30 days from the last announcement made on public media.

The creditor’s registration period against the limitation fund is 60 days, beginning from when the last announcement is made. The ship-owner, charter, operator, salvor and insurer may apply to the maritime court to con - stitute a limitation fund. Cash or a guarantee shall be made available for the fund within three days after the court’s deci - sion to allow constitution; otherwise, the appli - cation will be treated as withdrawn. A limitation fund is successfully constituted by a successful cash deposit or guarantee. 2.5 Seafarers’ Safety and Owners’ Liability The Maritime Labour Convention 2006 is applica - ble in the PRC (except Hong Kong and Macau). The following main domestic laws and regula - tions have been ratified by the PRC in regard to seafarers’ rights and safety: • the CMC; • the Maritime Traffic Safety Law of the PRC; • the Regulation on Seamen of the PRC; • the Provisions of the Supreme People’s Court on Several Issues Concerning the Trial of Cases Involving Seaman-Related Disputes; • the Rules for the Watchkeeping of Seafarers on Seagoing Vessels of the PRC; • the Rules for the Competency Examination and Certification of Seafarers Serving in Sea - going Ships of the PRC; and • the Measures for the Management of Seafar - ers’ Working and Living Conditions on Board the Ships of the PRC.

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