On 28 February 2015, the Chinese Supreme People’s Court (“SPC”) enacted a new judicial interpretation (“the Interpretation”) on ship arrest and judicial sale of ships. This took effect as of 1 March 2015.
The Interpretation aims to clarify and streamline the rules and court practice on Chinese ship arrest and judicial sale of ships. This article highlights the main changes that may be of particular interest to owners, charterers (in particular bareboat charterers) and other interested parties whose ships may call at ports in China.
Judicial Sale Of Bareboat Chartered Ships
Provision Of Counter-Security
- the maintenance costs of the ship during the arrest period;
- the loss of use of the ship as a result of the arrest; and
- the cost incurred by the respondent (i.e. the party against whom the ship was arrested) in relation to provision of security in exchange for release of the ship.
Return Of Counter-Security
- where the respondent agrees to this; or
- where the claimant has obtained a judgment in its favour in the substantive proceedings and has been awarded an amount that is approximately equivalent to the amount of security provided by the respondent.
Clarifications/Simplifications Of Judicial Sale Procedures
For further information, please contact:
Paul Ho, Partner, Ince & Co
Shirley Li, Ince & Co
Samuel Ding, Ince & Co