The new China Civil Code (CCC), which will be set into force on 1st January 2021 introduces major changes to various sectors of Chinese law, while is considered to have potential impacts on shipping, reports Safety4Sea.
CCC to extend to maritime matters
Following matters of private property, contracts, privacy, marriage, family, and inheritance, the CCC will also extend to maritime matters not expressly regulated by the 1993 China Maritime Code (CMC).
Namely, it is anticipated that the shipping industry is likely to be affected by the CCC in the following areas:
- Transfer of ownership of mortgaged property
- A contract for the benefit of a third party
- Performance by a third party on behalf of a contractual party in default
- The independence of a guarantee
- The implied guarantee period
- The time bar for claims in contract and tort
Since the application of the Code has not yet been tested in the courts, the interaction of the CCC and the CMC, as well as the impact on shipping, remains to be seen. One point that requires clarification is whether the CCC will supersede the CMC or vice versa, in the event of a conflict between the two.
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Source: Safety4Sea
