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Enforcement and Ranking of China's Maritime Liens
F. U. Jan. 23, 2004
Answer:
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.
According to Paragraph 1 of
Article 22 of the Maritime Code, The following maritime claims shall be
entitled to maritime liens: 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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