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Enforcement and Ranking of China's Maritime Liens


Question:  
I am presently working on a research paper in the field of Shipping and Admiralty Law. The project deals with the enforcement and ranking of Maritime Liens in your jurisdictions.  I would truly appreciate it if I am furnished with the position of the law in your jurisdiction. 
Thanks for your co-operation an all the best wishes

         F.  U.    Jan.  23, 2004

 

Answer:  
My answer to you question is on the bases of MARITIME CODE OF THE PEOPLE'S REPUBLIC OF CHINA (Adopted at the 28th Meeting of the Standing Committee of the Seventh National People's Congress on November 7, 1992, promulgated by Order No. 64 of the President of the People's Republic of China on November 7, 1992, and effective as of July 1, 1993).

According to Article 21 of the Maritime Code, a maritime lien is the right of the claimant, subject to the provisions of Article 22 of the Maritime Code, to take priority in compensation against shipowners, bareboat charterers or ship operators with respect to the ship which gave rise to the said claim.

The enforcement and ranking of Maritime Liens in the jurisdictions of the Pelple's Republic of China are as follows:

According to Paragraph 1 of Article 22 of the Maritime Code, The following maritime claims shall be entitled to maritime liens:
(1) Payment claims for wages, other remuneration, crew repatriation and social insurance costs made by the Master, crew members and other members of the complement in accordance with the relevant labour laws, administrative rules and regulations or labour contracts;
(2) Claims in respect of loss of life or personal injury occurred in the operation of the ship;
(3) Payment claims for ship's tonnage dues, pilotage dues, harbour dues and other port charges;
(4) Payment claims for salvage payment;
(5) Compensation claims for loss of or damage to property resulting from tortious act in the course of the operation of the ship.

According to Paragraph 2 of Article 22 of the Maritime Code, compensation claims for oil pollution damage caused by a ship carrying more than 2,000 tons of oil in bulk as cargo that has a valid certificate attesting that the ship has oil pollution liability insurance coverage or other appropriate financial security are not within the scope of sub-paragraph (5) of Paragraph 1 of Article 22 of the Maritime Code.

According to Article 23 of the Maritime Code, the maritime claims set out in paragraph 1 of Article 22 of the Maritime Code shall be satisfied in the order listed. However, any of the maritime claims set out in sub-paragraph (4) arising later than those under sub-paragraph (1) through (3) shall have priority over those under sub- paragraph (1) through (3). In case there are more than two maritime claims under sub-paragraphs (1), (2), (3) or (5) of paragraph 1 of Article 22, they shall be satisfied at the same time regardless of their respective occurrences; where they could not be paid in full, they shall be paid in proportion. Should there be more than two maritime claims under sub-paragraph (4), those arising later shall be satisfied first.

According to Article 24 of the Maritime Code, the legal costs for enforcing the maritime liens, the expenses for preserving and selling the ship, the expenses for distribution of the proceeds of sale and other expenses incurred for the common interests of the claimants, shall be deducted and paid first from the proceeds of the auction sale of the ship.

According to Article 28 of the Maritime Code, a maritime lien shall be enforced by the court by arresting the ship that gave rise to the said maritime lien.

- Wang Xuanjun   Jan. 30,2004

Note: All answers here are for reference. Mr. Wang shall have neither liability nor responsibility to any party for any loss or damage caused or alleged to caused by the use of the answers without written confirmation to the party. 

 

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