With a view to dealing properly with general average adjustment on the basis of equality and mutual benefit so as to promote the development of international trade and marine transport, China Council for the Promotion of International Trade has adopted these Rules.

Article 1 Scope of General Average

1. The following extraordinary loss or damage and reasonable extra expenses arising from measures properly taken for relieving the ship, cargo, etc. from common danger caused by natural calamity, accident and/or other extraordinary circumstances in the same marine voyage shall be admitted as general average:

(1) Reasonable loss of or damage to the ship, cargo, etc. caused by rescuing the same from danger, as well as reasonable expenses incurred for such rescue.

(2) Salvage expenses whether incurred under contract or not shall be admitted as general average to the extent that the expenses incurred are reasonable for the purpose of relieving the property from danger in the same voyage.

(3) For common safety, the extra expenses incurred by the ship for entering a place or port of refuge and being extra detained thereat, as well as the extra expenses incurred for leaving there subsequently with her original cargo.

2. When the ship needs repair for safe completion of the voyage in consequence of damage caused by accident during the voyage, the following extraordinary expenses and loss or damage incurred by the ship in port or place of refuge and in port or place of loading, or in port of call during the extra period of detainment shall be admitted as general average.

(1) The port charges.

(2) The expenses and loss or damage arising from such discharging, reloading and moving on board the cargo, fuel or stores, etc. as are required for the repair.

(3) When repair of the ship can not be carried out in the port or place of refuge so as necessarily to remove the ship to another port or place, the expenses incurred for removal including such expenses and so on incurred for the temporary repair and towage as are required by the removal.

(4) When the ship stays at any port or place in the circumstances which would give rise to an allowance in general average under the provisions of this Paragraph, and the cargo or part thereof is forwarded to destination by other means of conveyance, right and liability for general average shall, subject to cargo interests being notified by any possibility, remain as nearly as possible the same, as if the same original voyage had been continued by the original ship within the time permitted under the original contract of affreightment and the applicable law.

(5) Cargo proportion of the allowances made in general average by reason of applying Subparagraph (4) of this Paragraph shall be limited to the expenses which would have been borne by owners of the cargo if the cargo had been forwarded at their expenses. This limitation shall not include such compensation that has been allowed in general average under Paragraph 4 of this Article.

3. When the expenses incurred for the ship to enter the port or place of refuge, or to return the port or place of reloading, and to be detained thereat are allowable in general average in accordance with Paragraph 1 (3) and Paragraph 2, the wages and maintenance of the crew reasonably incurred as well as the fuel and stores reasonably consumed during the consequent extra prolongation of the voyage shall be allowable in general average accordingly except the expenses incurred for the repair which is not allowable in general average.

4. Where any expense is incurred to save another expense which would have been admissible in general average, such expense may be allowed in general average as a substituted expense, but the amount so allowable may not exceed the saved expense of general average.

5. With the exception of loss or damage and expenses referred to in the above paragraphs, any other loss or damage and expenses through delay may not be admitted as general average.

6. In no case may there be any allowance in general average for loss, damage or expense incurred by damage to the environment or by escape or release of pollutant substances from the property involved in the same voyage.

Article 2 Principle of Adjusting General Average

1. In no case may there be any allowance for general average sacrifices and expenses unless reasonably incurred.

2. The onus of proof shall be upon the party applying for general average adjustment to show that his loss or damage and expenses claimed for are allowable as general average in accordance with the provisions of these Rules.

3. Adjustment and right to require for contribution in general average shall not be affected, even though the event giving rise to a claim submitted for adjustment as general average may have arisen from the fault of one of the parties to the voyage, for which he is not entitled to exemption from liability, but this shall not prejudice any claims or defenses submitted by the party without fault and the party with fault in respect of such fault.

Article 3 Computation of Amount of Loss or Damage for General Average

The amount to be admitted as general average for loss of or damage to the ship, cargo and freight shall be computed on the following basis:

1. The amount allowable for loss of or damage to the ship shall be computed in accordance with the actually-paid reasonable cost of repairing such damage subject to reasonable deduction in respect of “new for old”. Where no repair for the ship has been effected, computation shall be made in accordance with the reasonable depreciation not to exceed the estimated cost of repair. The amount allowable for loss of or damage to fuel and stores, etc. shall be computed on the basis of their actual values.

2. The amount allowable for loss of or damage to the cargo shall be computed on the basis of the value at the time of shipment plus cost of insurance and freight, less the freight to be not incurred for such loss or damage. Where the damaged cargo is sold, the amount shall be computed on the basis of the difference of the value at the time of shipment plus cost of insurance and freight in comparison with the net proceeds of sale.

3. The amount allowable for loss of freight arising from general average sacrifice of cargo shall be computed on the basis of the freight to be lost by loss of or damage to the cargo, less the operating expenses of the ship to be not incurred for such loss or damage.

Article 4 Contribution to General Average

General average loss or damage and expenses shall be contributed by the benefited interests in proportion to their respective contributory values and shall be computed on the following basis:

1. The contributory value of the ship shall be computed either in accordance with the market value of the ship in sound condition at the time and place of termination of the voyage, less the amount of loss or damage, plus the amount of loss or damage to be admitted as general average, or in accordance with the actual value of the ship at the time and place of termination of the voyage, plus the amount of loss or damage to be admitted as general average.

2. (1) The contributory value of the cargo shall be computed on the basis of the value at the time of shipment plus cost of insurance and freight, less the amount of loss or damage to be not admitted as general average and the freight at the risk of the carrier.

(2) Undeclared or falsely declared cargo shall contribute to the general average on the actual value, but loss of or damage to such cargo may not be admitted as general average.

(3) Passengers’ luggage and personal effects shall not contribute to the general average with exception of the passengers’ vehicles consigned as cargo as well as the vehicles and the goods thereon for commercial purpose.

(4) The contributory value of the freight shall be computed on the basis of the freight at the risk of the carrier and in his entitlement to collect at the time of termination of the voyage, less the operating expenses paid to complete the voyage after the occurrence of the general average accident so as to collect the freight, plus the amount of the general average sacrifice.

Article 5 Interest

Interest shall be allowed for general average loss or damage and expenses at the rate of 7 percent per annum until three months from the date of the General Average Adjustment.

Article 6 General Average Security

The contributing parties shall, at the request of the parties concerned, provide an appropriate security to ensure their contribution to general average. Such security may be in the form of a reliable letter of guarantee or a cash deposit. Where a cash deposit is provided, the same shall be paid into an account in a bank in the name of the organization for average adjustment as depositary unless otherwise agreed upon by the parties concerned. Any use of the cash deposit shall obtain the consent of its provider. Provision, use and refund of the cash deposit shall be without prejudice to the ultimate liability of the  contributing parties.

Article 7 Time Limit for Adjustment of General Average

1. General average shall be declared within forty-eight hours upon the ship’s arrival in the first port after the event occurred to the ship at the sea unless extraordinary circumstances arise, or within forty-eight hours after the event occurred to the ship in the port. The declaration of general average shall be notified by any possibility to the parties concerned with the cargo.

2. (1) For provision of documentary evidences pertaining to the occurrence of general average and general average loss or damage, the party concerned, upon receipt thereof, shall submit them to the organization for average adjustment as soon as possible, and all materials shall in any case be provided within one year since completion of the voyage.

(2) For violation of the provisions of the preceding subparagraph, the organization for average adjustment shall be at liberty to estimate the amount of the allowance or the contributory value on the basis of the information available thereto. Such estimation may not be challenged unless new information shows that such estimation is manifestly incorrect.

Article 8 Supplementary Provision

1. The power to interpret these Rules shall be vested to China Council for the Promotion of International Trade.

2. China Council for the Promotion of International Trade shall simultaneously establish organization for average adjustment.

3. These Rules shall come into force from September 1, 2022, and the Provisional Rules for General Average Adjustment of China Council for the Promotion of International Trade shall be repealed at the same time.

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Translated by Wang Baowei, Rectified by Liu Shujian.