CHINA Law and Practice Contributed by: John Wang, Xu Jun, Song Jia and Zhao Yuxuan, Wang Jing & Co
does not exceed three years from the time of disembarkation; (3) Claims for loss of or damage to the luggage: counting from the day of disembarkation or the day on which the passenger should have dis - embarked”. Limitation of Liabilities for a Ship-Owner Article 117 of the CMC states: “Except the circumstances specified in para - graph 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 pas - senger: 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 vehi - cle; (4) For loss of or damage to luggage other than that mentioned in subparagraphs (2) and (3) in this Article: 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… 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 writ - ing...” In addition, according to Article 207, a ship-own - er (including a charterer and a ship-operator) or a salvor could enjoy the limitation of liability for maritime claims stipulated in Article 211 of the same law. However, Articles 118 and 209 regulate that the carrier or a person liable shall not be entitled to limit their liability based on the above provisions if it is proved that the loss resulted from their act or omission done with the intent to cause that loss or damage, or if they acted recklessly and with the knowledge that such loss would prob - ably result. Meanwhile “a person liable” in Article 209 refers to the carrier/owner rather than the Master, crew or agent. This means that the carrier/owner is still entitled to benefit from the limitation of liabil - ity for maritime claims if it is proved that the loss, damages or delay in delivery of goods resulted from the wilful or reckless acts of the Master or crews rather than the carrier/owner. 6. Enforcement of Law and Jurisdiction and Arbitration Clauses 6.1 Enforcement of Law and Jurisdiction Clauses Stated in Bills of Lading PRC courts rarely recognise the validity of law or jurisdiction clauses stated in the B/L due to the lack of negotiation between the consignee, the receiver, the holder of the original B/L, the cargo underwriters and the carrier about such clauses.
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