CHILE Law and Practice Contributed by: Ricardo Rozas, Max Morgan and Stefano Perretta, Jorquiera & Rozas Abogados
1. Maritime and Shipping Legislation and Regulation 1.1 Domestic Laws Establishing the Authorities of the Maritime and Shipping Courts The legislative framework for shipping in Chile is constructed from various regulations and laws, for which the main sources are as follows: • Book III of the Chilean Code of Commerce (the “Code of Commerce”), About Naviga - tion and Maritime Trade (Articles 823 to 1250), which includes general provisions and specific chapters on vessel ownership, liens, ship-owners, masters, ship agents, navigation contracts, navigation risks, marine insurance and procedural issues; • the Navigation Law (Decree Law 2222/78); • the Merchant Navy Law (Decree Law 3059/79); • international conventions, such as the UN Convention on the Carriage of Goods by Sea 1978 (the “Hamburg Rules”), the International Convention for the Safety of Life at Sea, 1974 (SOLAS), the Maritime Labour Convention 2006 (MLC) and the International Conven - tion on Civil Liability for Oil Pollution Damage 1969, replaced by the 1992 Protocol (the “CLC 1992”); and • regulations issued by the Chilean Maritime Authority. Under Chilean practice, commonly filed mari - time and shipping claims are related to cargo claims under the Chilean adoption of the Ham - burg Rules. Arrest petitions are also common. As regards competent courts, Article 1203 of the Code of Commerce establishes the general prin - ciple that the resolution of all maritime disputes, including those relating to marine insurance, is
subject to mandatory arbitration. However, the ordinary civil courts may hear maritime disputes in certain cases, including: • if the parties mutually agree to this (either by including it in the contract from which the dis - pute originates or by prior written agreement); • if a criminal action could arise from the same facts (in this case the civil action can be filed before either the criminal court or an arbitra - tor); • claims in respect of oil pollution as set out under paragraph 4, Title IX of the Navigation Law; • claims in which the state harbour or customs agencies are involved; and • claims in which the amount at stake is less than 5,000 units of account (special draw - ing rights, also known as SDR, as defined by the International Monetary Fund), provided that the claimant submits its claim before the ordinary courts. In addition, specific petitions for the appoint - ment of an arbitrator, ship arrest and constitu - tion of limitation funds are heard by ordinary civil courts. 1.2 Port State Control The government agency responsible for port state control is the General Directorate of Mari - time Territory and Merchant Marine (also known as DIRECTEMAR). Its main powers can be sum - marised as follows: • ensuring the safety of navigation and the pro - tection of human life at sea, and overseeing compliance with the national and international provisions on these matters; • controlling and overseeing ships’ and naval artifacts’ material to ensure their efficiency and seaworthiness;
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