CHINA Law and Practice Contributed by: John Wang, Xu Jun, Song Jia and Zhao Yuxuan, Wang Jing & Co
However, if the bunkers were supplied to a char - tered vessel and ordered by the charterer, and not by the owner, things will be different. A ves - sel operated or chartered by a time charterer or voyage charterer may not be arrested. A time charterer shall be entitled to give master instructions consistent with the stipulations of the time charter with respect to the operation of a vessel. However, a voyage charterer is not considered to have the authority to bind a ves - sel. 4.5 Arresting a Vessel The following formalities are required to arrest a ship: • a power of attorney and an identity certificate of a legal representative; and • a Certificate of Incorporation or Good Stand - ing of the applicant. These documents shall be duly notarised and legalised: • an application for arrest; and • supporting evidence and translation into the Chinese language (if the original language is not Chinese). Originals or notarised copies of supporting evidence are required. The court always requires the applicant to lodge a counter-security in the case of a wrongful arrest. 4.6 Arresting Bunkers and Freight The applicant is entitled to arrest bunkers. How - ever, it is very difficult to enforce such an arrest due to complex customs formalities, safety, and storage requirements, etc.
The applicant is entitled to apply for a court order to preserve the freight for due debts. 4.7 Sister-Ship Arrest The maritime court may arrest a sister vessel that is owned, at the time of arrest, by the ship- owner, the demise charterer, the time charterer or the voyage charterer who is liable for the maritime claim, except for claims related to the ownership or possession of the vessel. 4.8 Other Ways of Obtaining Attachment Orders The applicant may apply for the arrest of cargo, or for property preservation against the respond - ent’s real estate or other assets. 4.9 Releasing an Arrested Vessel The owner or any interested party may lodge a satisfied security to release the vessel. The court only accepts security lodged in cash or a letter of undertaking (LOU) issued by a domestic bank or insurance company, or any other entity they deem appropriate. Nonetheless, the ship-owner or the interested party is at liberty to negotiate the security with the applicant. In the event that the applicant agrees to accept a club LOU or a foreign bank’s guarantee, the court may release the vessel. 4.10 Procedure for the Judicial Sale of Arrested Ships A judicial sale of an arrested ship must follow the steps set out below: • set up an auction committee; • appraise the ship value; • issue the auction notice; • display the ship; • set the price; • register the bidders; • conduct the ship auction and bidding (online);
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