SPECIAL MARITIME PROCEDURE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.28

The Special Maritime Procedure Law of the People’s Republic of China which has been adopted at the 13th Meeting of the Standing Committee
of the Ninth National People’s Congress on December 25, 1999 is promulgated now, and shall enter into force as of July 1, 2000.

President of the People’s Republic of China: Jiang Zemin

December 25, 1999

Special Maritime Procedure Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Jurisdiction

Chapter III Maritime Claims Preservation

Section 1 General Principles

Section 2 Arresting or Auction Sale of Ships

Section 3 Arrest and Auction of the Goods on Board

Chapter IV Maritime Injunction

Chapter V Maritime Evidence Preservation

Chapter VI Maritime Guarantee

Chapter VII Service

Chapter VIII Trial Procedures

Section 1 Provisions on Trying Cases Involving Collision of Ships

Section 2 Provisions on Trying Cases Involving General Average

Section 3 Provision on Exercising the Right to Indemnity by Subrogation

by a Maritime Insurer

Section 4 Summary Procedures, Procedures for Hastening Debt Recovery

and Procedures for Publicizing Public Notice for Assertion

of Claims

Chapter IX Procedures for Constituting a Limitation Fund for Maritime Claims Liability

Chapter X Procedures for Registering Creditors’ Rights and Repayment of Debt

Chapter XI Procedures for Publicizing Notice for Assertion of Maritime Liens

Chapter XII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the purposes of maintaining the litigation rights, ensuring the ascertaining of facts by the people’s courts,
distinguishing right from wrong, applying the law correctly, trying maritime cases promptly.

Article 2

Whoever engages in maritime litigation within the territory of the People’s Republic of China shall apply the Civil Procedure Law
of the People’s Republic of China and this Law. Where otherwise provided for by this Law, such provisions shall prevail.

Article 3

If an international treaty concluded or acceded to by the People’s Republic of China contains provisions that differ from provisions
of the Civil Procedure Law of the People’s Republic of China and this Law in respect of foreign-related maritime procedures, the
provisions of the international treaty shall apply, except those on which China has made reservations.

Article 4

The maritime court shall entertain the lawsuits filed in respect of a maritime tortious dispute, maritime contract dispute and other
maritime disputes brought by the parties as provided for by laws.

Article 5

In dealing with maritime litigation, the maritime courts, the high people’s courts where such courts are located and the Supreme People’s
Court shall apply the provisions of this Law.

Chapter II Jurisdiction

Article 6

Maritime territorial jurisdiction shall be conducted in accordance with the relevant provisions of the Civil Procedure Law of the
People’s Republic of China.

The maritime territorial jurisdiction below shall be conducted in accordance with the following provisions:

(1)

A lawsuit brought on maritime tortious may be, in addition to the provisions of Articles 19 to 31 of the Civil Procedure Law of the
People’s Republic of China, under jurisdiction of the maritime court of the place of its port of registry;

(2)

A lawsuit brought on maritime transportation contract may be, in addition to the provisions of Articles 82 of the Civil Procedure
Law of the People’s Republic of China, under jurisdiction of the maritime court of the place of its port of re-transportation;

(3)

A lawsuit brought on maritime charter parties may be under jurisdiction of the maritime court of the place of its port of ship delivery,
port of ship return, port of ship registry, port where the defendant has its domicile;

(4)

A lawsuit brought on a maritime protection and indemnity contract may be under jurisdiction of the maritime court of the place where
the object of the action is located, the place where the accident occurred or the place where the defendant has its domicile;

(5)

A lawsuit brought on a maritime contract of employment of crew may be under jurisdiction of the maritime court of the place where
the plaintiff has its domicile, the place where the contract is signed, the place of the port where the crew is abroad or the port
where the crew leaves the ship or the place where the defendant has its domicile;

(6)

A lawsuit brought on a maritime guaranty may be under jurisdiction of the maritime court of the place where the property mortgaged
is located or the place where the defendant has its domicile; a lawsuit brought on a ship mortgage may also be under jurisdiction
of the maritime court in the place of registry port;

(7)

a lawsuit brought on ownership, procession, and use, maritime liens of a ship, may be under jurisdiction of the maritime court of
the place where the ship is located, the place of ship registry or the place where the defendant has its domicile.

Article 7

The following maritime litigation shall be under the exclusive jurisdiction of the maritime courts specified in this Article:

(1)

A lawsuit brought on a dispute over harbour operations shall be under the jurisdiction of the maritime court of the place where the
harbour is located;

(2)

A lawsuit brought on a dispute over pollution damage for a ship’s discharge, omission or dumping of oil or other harmful substances,
or maritime production, operations, ship scrapping, repairing operations shall be under the jurisdiction of the maritime court of
the place where oil pollution occurred, where injury result occurred or where preventive measures were taken;

(3)

A lawsuit brought on a dispute over a performance of a maritime exploration and development contract within the territory of the People’s
Republic of China and the sea areas under its jurisdiction shall be under the jurisdiction of the maritime court of the place where
the contract is performed.

Article 8

Where the parties to a maritime dispute are foreign nationals, stateless persons, foreign enterprises or organizations and the parties,
through written agreement, choose the maritime court of the People’s Republic of China to exercise jurisdiction, even if the place
which has practical connections with the dispute is not within the territory of the People’s Republic of China, the maritime court
of the People’s Republic of China shall also have jurisdiction over the dispute.

Article 9

An application for determining a maritime property as ownerless shall be filed by the parties with the maritime court of the place
where the property is located; an application for declaring a person as dead due to a maritime accident shall be filed with the maritime
court of the place where the competent organ responsible for handling with the accident or the maritime court that accepts the relevant
maritime cases.

Article 10

In the event of a jurisdictional dispute between a maritime court and a people’s court, it shall be resolved by the disputing parties
through consultation; if the dispute cannot be so resolved, it shall be reported to their common superior people’s court for the
designation of jurisdiction.

Article 11

When the parties apply for enforcement of maritime arbitral award, apply for recognition and enforcement of a judgement or written
order of a foreign court and foreign maritime arbitral award, an application shall be filed with the maritime court of the place
where the property subjected to execution or of the place where the person subjected to execution has its domicile. In case of no
maritime court in the place where the property subjected to execution or in the place where the person subjected to execution has
its domicile, an application shall be filed with the intermediate people’s court of the place where the property subjected to execution
or of the place where the person subjected to execution has its domicile.

Chapter III Maritime Claims Preservation

Section 1 General Principles

Article 12

Maritime claims mean maritime courts, according to applications of maritime claimants, take compulsory preservation measures against
property of persons against whom the claims are brought up in order to ensure the realization of such rights.

Article 13

An application for maritime claims by the parties shall, before bring a lawsuit, be filed with the maritime court of the place where
the property subjected to preservation.

Article 14

Maritime claims shall not be bound by procedure jurisdiction agreements or arbitration agreements relating to the said maritime claims
between the parties.

Article 15

Where maritime claimants apply for maritime claims, written applications shall be filed with maritime courts. Maritime claims, application
reasons, objects subjected to preservation and amounts for guaranty shall be stated in applications.

Article 16

A maritime court may, in accepting a maritime preservation application, order the claimant to provide a guaranty. Where the claimant
fails to provide guaranty, his application shall be rejected.

Article 17

After receiving an application, the maritime court must make an order within 48 hours; if the court orders the adoption of maritime
preservation measures, the execution thereof shall begin immediately. Where not conforming to the conditions for a maritime preservation,
the application shall be rejected.

If the party concerned is not satisfied with the order, he may, within five days from the date of the receipt of the order, apply
for reconsideration which could be granted only once. The maritime court shall make a reconsideration decision within five days from
the date of the receipt of the reconsideration application. Execution of the order shall not be suspended during the time of reconsideration.

Where the interested party raises objection to the maritime preservation, the maritime court, upon examination and deeming it reasonable,
shall cancel the property preservation.

Article 18

If the person against whom the application for maritime preservation is made provides guaranty, or the party has justified reasons
for applying cancellation of maritime reservation, the people’s court shall cancel the property reservation promptly.

If the maritime claimant fails to bring an action or apply for arbitration according to the arbitration agreement within the time
limit specified by this Law, the people’s court shall cancel the property reservation or return the guaranty promptly.

Article 19

Where the relevant maritime dispute enters into litigation or arbitration procedure after execution of the maritime preservation,
the party may bring an action relating to the maritime claim to the maritime court which has taken maritime claim preservation or
other maritime courts having jurisdiction over it, with the exception of signing of a litigation jurisdiction agreement or an arbitration
agreement between the parties.

Article 20

If an application for maritime preservation is wrongfully made by a maritime claimant, the claimant shall compensate the person against
whom the application is made for any loss incurred from maritime preservation.

Section 2 Arresting or Auction Sale of Ships

Article 21

The following maritime claims may applied for arresting ships:

(1)

the destruction of or damage to the property occurred in the operation of the ship;

(2)

the loss of life or personal injury directly relating to the operation of the ship;

(3)

salvage payment;

(4)

the damage or threat of damage caused by the ship to the environment, seashore or the relevant interested parties; the measures taken
for prevention, reduction and elimination of such damage; payment for compensation of such damage; the reasonable cost for the measures
taken actually or preparing to take for restoring the environment; loses the third party suffered or will probably suffer due to
such damage; and the damage, fees or loses which are similar in nature specified in this Item;

(5)

fees relating to floating, elimination, recycling and destruction of sunken ships, shipwreck, stranded objects, abandoned ships or
making them harmless, including fees relating to floating, elimination, recycling and destruction of the objects which still are
or were abroad such ships or making them harmless, and fees relating to maintenance of abandoned ships and suppurating the crew members;

(6)

the agreement or use or charter parties of the ship;

(7)

an agreement for carriage of goods or passengers;

(8)

goods (including luggage) on board or loss or damage related thereto;

(9)

general average;

(10)

towage service;

(11)

pilotage service;

(12)

provision of materials or services for operation, management, maintenance and repair of ships;

(13)

ship building, rebuilding, repair, refitting or fitting;

(14)

prescribed fees or fees for ports, canals, wharves, harbors or other waterways;

(15)

wages of ship’s crew or other payments, including the repatriation fee and social insurance premium payable for ship’s crew;

(16)

expenses paid for a ship or shipowner;

(17)

ship’s insurance premium (including mutual insurance membership fee) paid by a shipowner or bareboat charterer, or paid on his behalf;

(18)

the commission, brokerage or agency fee related to a ship paid by the shipowner or bareboat charterer, or paid on his behalf;

(19)

a dispute over ownership or possession of a ship;

(20)

a dispute over use of or profit from a ship between co-owners of the ship;

(21)

a mortgage of a ship or right of the same nature; or

(22)

a dispute arising from a contract for sale of a ship.

Article 22

No application for arrest of a ship may be filed except for the maritime claims as stipulated in Article 21 of this Law; there are
exceptions, however, for executing judgments, arbitral awards or other legal documents.

Article 23

If any of the following circumstances exists, a maritime court may arrest the involved ship:

(1)

where the shipowner is held responsible for a maritime claim and is the owner of the ship when the arrest is executed;

(2)

where the bareboat charterer of the ship is held responsible for a maritime claim and is the bareboat charterer or the owner of the
ship when the arrest is executed;

(3)

where a maritime claim is enpost_titled to a mortgage of the ship or right of the same nature;

(4)

where a maritime claim relates to ownership or possession of the ship; or

(5)

where a maritime claim is enpost_titled to a maritime lien.

A maritime court may arrest other ships owned by the shipowner, bareboat charterer, time charterer or voyage charterer who is held
responsible for a maritime claim, when the arrest is executed, with the exception of the claims related to ownership or possession
of the ship.

No ship engaging in military or government duties may be arrested.

Article 24

A maritime claimant may not apply to arrest a ship having been arrested for the same maritime claim, except that any of the following
circumstances exists:

(1)

where the party who opposes the claim has not provided a sure guarantee;

(2)

where the guarantor probably cannot perform his obligation of guarantee wholly or partly; or

(3)

where the maritime claimant agrees to release the arrested ship or return the existing guarantee for justifiable reason; or cannot
stop the release of the arrested ship or return of the existing guarantee by justifiable means.

Article 25

For a maritime claimant applying to arrest the involved ship, if the name of the party who opposes the claim cannot be ascertained
at once, the filing of his application shall not be affected.

Article 26

A maritime court may issue the relevant departments with a notice for assistance in execution at the same time it issues or cancels
an order for arrest of a ship, and the notice shall clearly set forth the scope and content of the assistance in execution and the
relevant departments have the obligation to assist in execution. A maritime may directly dispatch personnel to board the ship for
supervision if it deems necessary.

Article 27

After a maritime court orders to impose preservation upon a ship, with consent of the maritime claimant, it may allow the ship to
continue the operation by ways of restraining the disposition or mortgage of the ship.

Article 28

The period of arresting a ship for maritime claim preservation shall be 30 days.

If a maritime claimant brings a law suit or applies for arbitration within 30 days, and applies for arrest of a ship in the course
of the litigation or arbitration, the arrest of the ship shall not be restrained by the period stipulated in the preceding paragraph.

Article 29

If, on the expiration of the period of arresting a ship, the party who opposes the claim fails to provide guarantee, and the ship
is not suitable for being arrested longer, the maritime claimant may apply to the maritime court arresting the ship for auction of
the ship after bringing a law suit or applying for arbitration.

Article 30

A maritime court shall conduct examination after receiving the application for auction of a ship, and make an order approving or disapproving
the auction of the ship.

If a party is not satisfied with the order, he may apply for reconsideration once within five days of the date of receiving the written
order. The maritime court shall make a reconsideration decision within five days of receiving the reconsideration application. Execution
of the order shall be suspended during the time of reconsideration.

Article 31

Where a maritime claimant, after filing an application for auction of a ship, applies for stopping the auction, whether or not to
give a permission shall be ordered by the maritime court. If the maritime court orders to stop the auction of the ship, expenses
incurred for auctioning the ship shall be paid by the maritime claimant.

Article 32

A maritime court that orders to auction a ship shall issue a public notice through newspapers or other new media. If a foreign ship
is to be auctioned, a public notice shall be issued through newspapers or other news media distributed abroad.

A public notice shall contain the following particulars:

(1)

name and nationality of the ship to be auctioned;

(2)

causes and basis for auction of the ship;

(3)

composition of the ship auction committee;

(4)

time and place for auction of the ship;

(5)

time and place for display of the ship to be auctioned;

(6)

procedure to be undergone for participating in the bidding;

(7)

registered items to be handled for claims; and

(8)

other particulars as required to be publicized.

The period of a public notice for auction of a ship shall not less than 30 days.

Article 33

A maritime court, 30 days prior to auction of the ship, shall issue notices to the registration authorities of the country of registry
of the ship to be auctioned, and to the known lienor, mortgagee and owner of the ship.

The contents of the notice contain the name of the ship to be auctioned, time and place for auction of the ship, causes and basis
for auction of the ship, and registration of claims.

The notice shall be in writing or take other appropriate forms by which receipt can be confirmed.

Article 34

Auction of a ship shall be executed by a ship auction committee. The ship auction committee shall be composed of three or five persons,
that is, execution officers appointed, as well as auctioneers and surveyors engaged by the maritime court.

The ship auction committee organizes appraisal and valuation of the ship; organizes and presides over the auction; signs a letter
of confirmation for conclusion of the auction with the bidder; and handles procedures for the transfer of the ship.

The ship auction committee shall be responsible to the maritime court and subject to supervision of the maritime court.

Article 35

Bidders shall register with the ship auction committee within a prescribed time limit. For registration, they shall submit for inspection
the identity certificates of themselves, enterprises’ legal representatives, or persons-in-charge of other organizations, as well
as powers of attorney of agents, and pay a certain amount of bonds for purchase of the ship.

Article 36

A ship auction committee shall display the ship to be auctioned before the auction of the ship, and shall provide facilities for inspecting
the ship to be auctioned and relevant data.

Article 37

The vendee shall pay without delay not less than 20 percent of the ship’s price after he signs a letter of confirmation, and the remainder
of the ship’s price shall be settled within seven days of the date of concluding the auction, however, except otherwise agreed upon
between the ship auction committee and the vendee.

Article 38

Once the vendee has settled the price in full, the original shipowner shall delivery the ship to the vendee on the basis of the current
condition of the ship, at the place of berth of the ship, within a fixed time limit. The ship auction committee shall organize and
supervise the delivery of the ship, and sign a letter of confirmation of ship’s delivery with the vendee after the delivery of the
ship.

After the delivery of the ship is finished, the maritime court shall issue an order releasing the arrest of the ship.

Article 39

After the delivery of the ship, the maritime court shall issue a public notice through newspapers or other news media, announcing
that the ship has been auctioned openly and delivered to the vendee.

Article 40

After accepting the ship, the vendee shall undergo formalities for registration of the ship’s ownership at the ship registration authorities
on the basis of the letter of confirmation for conclusion of auction and relevant data. The original shipowner shall undergo formalities
for cancellation of registration of the ship’s ownership at the original ship registration authorities. Failure to undergo formalities
for cancellation of registration of the ship’s ownership by the original shipowner shall not affect the transfer of the ship’s ownership.

Article 41

Malicious collusion between bidders makes the auction invalid. Any bidder involved in malicious collusion shall pay expenses for auctioning
the ship and compensate losses incurred. The maritime court may impose upon the bidder involved in malicious collusion a fine of
not more than ten percent and not less than 30 percent of the highest price offered.

Article 42

In addition to the provisions in this Section, auction shall be governed by the relevant provisions of the Auction Law of the People’s
Republic of China.

Article 43

Auction of an arrested ship for debt payment during the procedure of execution may be referred to the relevant provisions of this
Section.

Section 3 Arrest and Auction of the Goods on Board

Article 44

A maritime claimant may apply to arrest the goods on board for ensuring the fulfillment of his maritime claim.

The goods on board to be arrested on application shall be under ownership of the party who opposes the claim.

Article 45

The value of the goods on board to be arrested on application by a maritime claimant shall be equivalent to the amount of his claim.

Article 46

The period of arresting the goods on board for maritime claim preservation shall be 30 days.

If a maritime claimant brings a law suit or applies for arbitration within 15 days, and applies for arrest of the goods on board in
the course of the litigation or arbitration, the arrest of the goods on board shall not be restrained by the period stipulated in
the preceding paragraph.

Article 47

If, on the expiration of the period of arresting the goods on board, the party who opposes the claim fails to provide guarantee, and
the goods are not suitable for being arrested longer, the maritime claimant may apply to the maritime court arresting the goods on
board for auction of the goods after bringing a law suit or applying for arbitration.

For articles which cannot be stored, or are difficult to be stored, or the storage expense may exceed their value, the maritime claimant
may apply for auction in advance.

Article 48

A maritime court shall conduct examination after receiving the application for auction of the goods on board, and make an order approving
or disapproving the auction of the goods on board.

If a party is not satisfied with the order, he may apply for reconsideration once within five days of the date of receiving the written
order. The maritime court shall make a reconsideration decision within five days of receiving the reconsideration application. Execution
of the order shall be suspended during the time of reconsideration.

Article 49

Auction of the goods on board shall be executed by an auction organization composed of execution officers appointed, and auctioneers
engaged by the maritime court, or executed by an agency authorized by the maritime court.

Auction of the goods on board, if not covered by the provisions of this Section, shall be referred to the relevant provisions of Section
2 of this Chapter on auction of a ship.

Article 50

Application by a maritime claimant for maritime claim preservation imposed upon fuel and materials used by a ship related to the maritime
claim shall be governed by the provisions of this Section.

Chapter IV Maritime Injunction

Article 51

A maritime injunction means any of compulsory measures by which a maritime court, on application by a maritime claimant, orders an
act or omission by the party who opposes the claim, in order to protect the lawful rights and interests of the maritime claimant
against any infringement.

Article 52

An interested party applying for a maritime injunction before bringing a law suit shall refer to the maritime court at the place where
the maritime dispute occurred.

Article 53

A maritime injunction shall not be restrained by a jurisdiction agreement or an arbitration agreement relating to the maritime claim
as agreed upon between the parties.

Article 54

A maritime claimant applying for a maritime injunction shall submit a written application to a maritime court. The application shall
clearly set forth causes for application with relevant evidence attached thereto.

Article 55

A maritime court accepting an application for a maritime injunction may order the maritime claimant to provide guarantee. If the maritime
claimant fails to provide guarantee, the application shall be rejected.

Article 56

To make a maritime injunction, the following conditions shall be fulfilled:

(1)

The claimant has a specific maritime claim;

(2)

There is a need to rectify an act committed by the party who opposes the claim, in violation of the provisions of the law or the stipulations
of a contract; and

(3)

In case of emergency, failure to make a maritime injunction immediately will cause damage or expand damage.

Article 57

After accepting the application, a maritime court shall make an order within 48 hours. If an order is made for making a maritime injunction,
it shall be executed immediately; if the conditions for a maritime injunction are not fulfilled, an order shall be made to reject
the application.

Article 58

If a party is not satisfied with the order, he may apply for reconsideration once within five days of the date of receiving the written
order. The maritime court shall make a reconsideration decision within five days of receiving the reconsideration application. Execution
of the order shall not be suspended during the time of reconsideration.

If an interested party lodges an objection to a maritime injunction, the maritime court shall order to cancel the maritime injunction
if it deems the causes are tenable through investigation.

Article 59

If the party who opposes the claim refuses to obey a maritime injunction, the maritime court may impose a fine or detain him in accordance
with the seriousness of the circumstances; if a crime has been constituted, criminal liability shall be investigated according to
the law.

A fine on an individual shall not be less than 1,000 yuan and not more than 30,000 yuan . A fine on a unit shall not be less than
30,000 yuan and not more than 100,000 yuan.

The period of detention shall not be longer than 15 days.

Article 60

A maritime claimant wrongfully submitting an application for a maritime injunction shall compensate losses incurred by the party who
opposes the claim or an interested party.

Article 61

If no litigation or arbitration procedures start for relevant maritime disputes after the execution of the maritime injunction, the
parties may bring a law suit for this maritime claim to the maritime court making the maritime injunction or the other maritime court
having jurisdiction, except that a jurisdiction agreement or an arbitration agreement has been concluded between the parties.

Chapter V Maritime Evidence Preservation

Article 62

Maritime evidence preservation means any of compulsory measures by which a maritime court obtains, retains or seals up evidence related
to the maritime claim on application by the maritime claimant.

Article 63

An interested party applying for maritime evidence preservation before bringing a law suit shall refer to the maritime court at the
place where the evidence to be preserved is located.

Article 64

Maritime evidence preservation shall not be restrained by a jurisdiction agreement or an arbitration agreement relating to the maritime
claim as agreed upon between the parties.

Article 65

A maritime claimant applying for maritime evidence preservation shall submit a written application to a maritime court. The application
shall clearly set forth the evidence to be preserved on application, the relation between the evidence and the maritime claim and
causes for application.

Article 66

A maritime court accepting an application for maritime evidence preservation may order the maritime claimant to provide guarantee.
If the maritime claimant fails to provide guarantee, the application shall be rejected.

Article 67

To impose maritime evidence preservation, the following conditions shall be fulfilled:

(1)

The claimant is the party to the maritime claim;

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