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Hong Kong


MERCHANT SHIPPING (LIABILITY AND COMPENSATION　FOR　OIL POLLUTION) ORDINANCE
　(CHAPTER 414)
　ARRANGEMENT OF SECTIONS
　　
　　ion
　　
　　I　　　　PRELIMINARY
　　hort title
　　nterpretation
　　ertificate as to parties to Conventions
　　alculation of tonnage
　　
　　II　　　 LIABILITY FOR OIL POLLUTION AND COMPULSORY INSURANCE
　　nterpretation of Part II
　　iability for oil pollution
　　xceptions from liability under section 6
　　estriction of liability for oil pollution
　　imitation of liability under section 6
　　Limitation actions
　　Restriction on enforcement of claims after establishment of
limitation
　　fund
　　Concurrent liabilities of owners and others
　　Establishment of limitation fund outside Hong Kong
　　Extinguishment of claims under Part II
　　Compulsory insurance against liability for oil pollution
　　Issue of certificate by Director
　　Rights of third parties against insurers
　　Jurisdiction of Hong Kong courts and registration of foreign
judgments
　　Warships, etc.
　　Liability for cost of preventive measures where section 6 does
not
　　apply
　　Saving for recourse actions
　　
　　III　　　THE INTERNATIONAL OIL POLLUTION COMPENSATION FUND
　　Interpretation of Part III
　　Contributions to the Fund
　　Power to obtain information
　　Liability of the Fund for pollution damage
　　Indemnification of ship owner where ship registered in Fund
Convention
　　country
　　Effect of judgments
　　Extinguishment of claims under Part III
　　Subrogation and rights of recourse
　　
　　IV　　　 MISCELLANEOUS
　　Offences by bodies corporate
　　Fees
　　Amendments, Savings and Repeals
　　
　　dule 1. Overall limit on liability of Fund
　　dule 2. (Omitted)
　　
　　rdinance to provide for　compensation　for　pollution　caused　
by　the
　　harge or escape of oil from oil-carrying ships and for　the　
liability
　　hipowners; for compulsory insurance in respect of such liability;　
for
　　ributions by oil importers and others to the　International　
Fund　for
　　ensation for Oil Pollution Damage; for the liability of　the　
Fund　in
　　ain circumstances for　such　pollution;　for　the　
indemnification　of
　　owners by the Fund; and for incidental or related matters.
　　January 1991] L. N. 13 of 1991
　PART I Preliminary
　　
　　hort title
　　Ordinance may be　cited　as　the　Merchant　Shipping　
(Liability　and
　　ensation for Oil Pollution) Ordinance.
　　nterpretation
　　In this Ordinance, unless the context otherwise requires--
　　t" includes expenses;
　　ntry" includes any territory;
　　rt" means the High Court or a judge thereof;
　　age" includes loss;
　　ector" means the Director of Marine;
　　d Convention" means the International Convention on the　
establishment
　　n International Fund for Compensation for Oil Pollution Damage　
opened
　　signature in Brussels on 18 December 1971;
　　g Kong ship" means a ship registered in Hong Kong;
　　bility　Convention"　means　the　International　Convention　
on　 Civil
　　ility for Oil Pollution Damage opened for signature in Brussels
on　29
　　mber 1969;
　　er", in relation to a ship, means the person or persons registered　
as
　　owner of the ship or, in the absence of registration,　the　
person　or
　　ons owning the ship, except that in relation to　a　ship　owned　
by　a
　　e which is operated by a person registered as the ship's operator,　
it
　　s the person registered as its operator; (Amended 74 of 1990 s.
104
　　
　　lution damage" means damage caused outside　a　ship　carrying　
oil　by
　　amination resulting from the discharge or escape of oil from the
ship,
　　ever the discharge or escape may　occur,　and　includes　the　
cost　of
　　entive measures and damage caused by preventive measures;
　　ventive measures" means any reasonable measures taken　by　any　
person
　　r a discharge or escape of oil　from　a　ship　to　prevent　or　
reduce
　　ution damage;
　　p"　means　any　sea-going　vessel　or　seaborne　craft　of　
any　 type
　　soever, carrying oil in bulk as cargo;
　　cial drawing rights" means units of account used by the　
International
　　tary Fund and known as special drawing rights;
　　minal installation" means any site for the　storage　of　oil　in　
bulk
　　h　is　capable　of　receiving　oil　from　waterborne　
transportation,
　　uding any facility situated offshore and linked to any such site.
　　For the purposes of this Ordinance, where more than one　
discharge　or
　　pe results from the same occurrence or from a　series　of　
occurrences
　　ng the same origin, they shall be treated as　one;　but　any　
measures
　　n after the first of them shall be deemed to have been taken after
the
　　harge or escape.
　　References in this Ordinance to the area of any　country　include　
the
　　itorial sea of that country.
　　
　　ertificate as to parties to Conventions
　　rtificate signed by the Governor and certifying that a State
specified
　　he certificate--
　　is a party to　the　Liability　Convention　in　respect　of　a　
country
　　ified in the certificate; or
　　is a party to the Fund Convention in respect of a country specified
in
　　certificate,
　　l be conclusive evidence of the matters contained therein and
shall in
　　legal　proceedings　under　this　Ordinance　to　which　it　
relates　be
　　ssible on its production and without further proof.
　　alculation of tonnage
　　the purposes of this　Ordinance,　the　tonnage　of　a　ship　
shall　be
　　rtained as follows--
　　where the register tonnage of the ship has been or can be　
ascertained
　　ccordance with the Merchant Shipping (Tonnage)　Regulations　
(App.　I,
　　, the ship's tonnage shall be the register tonnage of the ship　
as　so
　　rtained but without making any deduction required by those
regulations
　　ny tonnage allowance for propelling machinery space;
　　where the ship is of a class or description with respect to　which　
no
　　ision is for the time being made by the　Merchant　Shipping　
(Tonnage)
　　lations, the tonnage of the ship shall be　taken　to　be　40%　
of　the
　　ht (expressed in tons of 2 240 lbs) of oil which the ship　is　
capable
　　arrying;
　　where the tonnage of the ship can not　be　ascertained　in　
accordance
　　either paragraph (a) or (b), the Director shall, if　so　directed　
by
　　court in any proceedings, certify what, on the evidence　
specified　in
　　direction, would in　his　opinion　be　the　tonnage　of　the　
ship　as
　　rtained in accordance with paragraph (a) or (b), as the case　may　
be,
　　he ship could be duly measured for the purpose; and the tonnage
stated
　　is certificate shall be taken to be the tonnage of the ship.
　PART II LIABILITY FOR OIL POLLUTION AND COMPULSORY INSURANCE
　　
　　nterpretation of Part II
　　In this Part--
　　bility Convention country" means a country in　respect　of　
which　the
　　ility Convention is in force; and
　　bility Convention State" means　a　State　which　is　a　party　
to　the
　　ility Convention.
　　In relation to any pollution damage resulting from　the　
discharge　or
　　pe of any oil carried in a ship references in this Part to　the　
owner
　　he ship are references to the owner at　the　time　of　the　
occurrence
　　lting in the discharge or escape or, if there is more　than　one　
such
　　rrence, at the time of the first of such occurrences.
　　References in this Part to the Merchant Shipping Act 1979 (1979
c. 39
　　.) are references to that Act as it applies in Hong Kong.
　　
　　iability for oil pollution
　　Where, as a result of any occurrence taking　place　while　a　
ship　is
　　ying a cargo of persistent oil in bulk, any persistent oil carried　
by
　　ship (whether as part of the cargo　or　otherwise)　is　
discharged　or
　　pes from the ship, the owner of the ship shall be　liable,　except　
as
　　rwise provided by this Ordinance, for any pollution damage　
caused　in
　　Kong.
　　Where--
　　a liability arises under subsection (1); and
　　the discharge or escape by reason of which the　liability　arose　
also
　　lts in pollution damage in the area of a Liability Convention　
country
　　r than Hong Kong, the owner of the ship concerned shall also be
liable
　　r subsection (1) for that damage as if the damage had occurred
in Hong
　　.
　　Where persistent oil is discharged or escapes from　2　or　more　
ships
　　-
　　a liability is incurred under this section by the　owner　of　
each　of
　　; but
　　the pollution damage for which each of the owners　would,　apart　
from
　　subsection, be liable cannot reasonably be separated　from　that　
for
　　h the other or others would be liable,
　　of the owners shall be liable, jointly with the other or others,　
for
　　whole of that damage for which the owners　together　would　be　
liable
　　r this section.
　　Section 21 of the Law Amendment and Reform (Consolidation)
Ordinance
　　. 23) shall apply in relation to any　pollution　damage　for　
which　a
　　on is liable under this section, but which is not due to his fault,
as
　　t were due to his fault.
　　xceptions from liability under section 6
　　owner of a ship from which persistent oil has been discharged　or　
has
　　ped shall not incur any liability under section 6 if　he　proves　
that
　　discharge or escape--
　　resulted from an act of war, hostilities, civil war,　
insurrection　or
　　xceptional, inevitable and irresistible natural phenomenon; or
　　was due wholly to anything done or left undone by another person,　
not
　　g a servant or agent of the owner, with intent to do damage; or
　　was due wholly to the negligence or wrongful act of　a　
government　or
　　r authority in exercising its function of maintaining lights or　
other
　　gational aids for the maintenance of which it was responsible.
　　estriction of liability for oil pollution
　　e, as a result of any occurrence taking place while a ship is
carrying
　　rgo of persistent oil in bulk, any persistent oil carried by the
ship
　　ther as part of the cargo or otherwise) is discharged or escapes
then,
　　her or not the owner incurs a liability under section 6,--
　　he shall not be liable otherwise than under that section for any　
such
　　ution damage as is mentioned therein; and
　　no servant or agent of the owner　and　no　person　performing　
salvage
　　ations with the agreement of the owner shall be liable　for　any　
such
　　ge.
　　
　　imitation of liability under section 6
　　e the owner of a ship incurs a liability under section 6 by reason　
of
　　scharge or escape which occurred without his actual fault or　
privity,
　　ay limit that liability in accordance with this Ordinance, and　
if　he
　　so his liability (that is to say, the aggregate　of　his　
liabilities
　　r section 6 resulting from the discharge or escape) shall not
exceed--
　　133 special drawing rights for each ton of the ship's tonnage;
or
　　14,000,000 special drawing rights, whichever amount is the less.
　　
　　Limitation actions
　　Where the owner of a ship　has　or　is　alleged　to　have　
incurred　a
　　ility under section 6 he may apply to the　court　in　accordance　
with
　　s of　court　for　the　limitation　of　that　liability　to　
an　amount
　　rmined in accordance with section 9.
　　If on such an application the　court　finds　that　the　
applicant　has
　　rred such a liability and is entitled to limit　it,　the　court　
shall
　　rmine the limit of the liability and direct payment into court
of　the
　　nt of that limit, and shall then
　　determine the amounts that would, apart from　the　limit,　be　
due　in
　　ect of the liability to the　several　persons　making　claims　
in　the
　　eedings under this section; and
　　direct the distribution of the amount paid into court (or, as the
case
　　be, so much of it as　does　not　exceed　the　liability)　among　
those
　　ons in proportion to their claims subject to the following　
provisions
　　his section.
　　A payment into court of the amount of a limit　determined　under　
this
　　ion shall be made in Hong Kong dollars and--
　　for the purposes of converting such an　amount　from　special　
drawing
　　ts into Hong Kong dollars the Monetary Authority may certify, in　
Hong
　　dollars, the respective amounts which are to be taken　as　
equivalent
　　a particular day to the sums expressed in special　drawing　
rights　in
　　ion 9;
　　a certificate signed by or on behalf of the Monetary　Authority　
under
　　graph (a) shall　be　conclusive　evidence　of　the　matters　
contained
　　ein and shall in legal proceedings under this Ordinance　to　
which　it
　　tes be admissible on its production and without further proof.
　　nded 82 of 1992 s. 44)
　　No claim shall be made in proceedings under this section except
within
　　time as the court may direct or such further time as　the　court　
may
　　w.
　　Where any sum has been paid in or towards satisfaction of any claim
in
　　ect of the pollution damage to which　the　liability　referred　
to　in
　　ection (1) extends--
　　by the owner or the person referred to in section 17 as "the
insurer";
　　
　　by a person who has or　is　alleged　to　have　incurred　a　
liability,
　　rwise than under section 6, for that damage and　who　is　
entitled　to
　　t his liability in connection with the ship by virtue of the　
Merchant
　　ping Act 1979 (1979 c. 39 U. K.), the person who paid the　sum　
shall,
　　he extent of that sum, be in the same position　with　respect　to　
any
　　ribution made in proceedings under this section as the person to　
whom
　　as paid　would,　apart　from　this　subsection,　have　been,　
and　the
　　ribution shall be made accordingly.
　　Where the owner who incurred the liability referred to in
subsection
　　has voluntarily made any　reasonable　sacrifice　or　taken　
any　other
　　onable measures to prevent or reduce pollution　damage　to　
which　the
　　ility extends or might have extended he shall be in the same　
position
　　respect to any distribution made in proceedings under this
section as
　　e had established a claim in respect of the liability　for　an　
amount
　　l to the cost of the sacrifice or other measures, and the
distribution
　　l be made accordingly.
　　The court may, if it thinks fit, postpone　the　distribution　of　
such
　　of the amount to be distributed as it deems appropriate having
regard
　　ny claims that may later be established before a　court　outside　
Hong
　　.
　　
　　Restriction on enforcement of claims after establishment of
limitation
　　
　　e the court has found that a person who has incurred a liability
under
　　ion 6　is entitled　to limit that liability to any amount　and　
he has
　　into court a sum not less than that amount--
　　the court shall order the　release　of　any　ship　or　other　
property
　　sted in connection with a claim in respect of that　liability　or　
any
　　rity given to prevent or obtain release from such an arrest; and
　　no judgment or decree for any such claim shall be enforced, except　
so
　　as it is for costs,
　　sum paid into court, or such part thereof as corresponds to the
claim,
　　be actually available to the claimant or would have been available
to
　　if the proper steps in the　proceedings　under　section　10　
had　been
　　n.
　　Concurrent liabilities of owners and others
　　e, as a result of any discharge or escape of　persistent　oil　
from　a
　　, he owner of the ship incurs a liability　under　section　6　and　
any
　　r person incurs a liability, otherwise than under　that　section,　
for
　　such pollution damage as　is　mentioned　in　subsection　(1)　
of　that
　　ion, then, if--
　　the owner has been found, in　proceedings　under　section　10,　
to　be
　　tled to limit his liability to any amount and has paid　into　
court　a
　　not less than that amount; and
　　the other person is entitled to limit his liability in connection
with
　　ship by virtue of the Merchant Shipping Act 1979 (1979 c. 39　U.　
K.),
　　roceedings shall be taken against the other person in respect　of　
his
　　ility, and if any such proceedings were　commenced　before　the　
owner
　　the　sum　into　court,　no　further　steps　shall　be　taken　
in　the
　　eedings except in relation to costs.
　　Establishment of limitation fund outside Hong Kong
　　e the events resulting in the liability of any person under
section　6
　　result in a corresponding liability under　the　law　of　a　
Liability
　　ention country other than Hong Kong, sections 11 and 12 shall
apply as
　　he references　to　sections　6　and　10　included　references　
to　the
　　esponding provisions of that law and the references to sums paid　
into
　　t included references to any sums secured under　those　
provisions　in
　　ect of the liability.
　　Extinguishment of claims under Part II
　　ction to enforce a claim in respect　of　a　liability　incurred　
under
　　ion 6 shall be brought in any court in Hong Kong unless the action　
is
　　enced not later than 3 years after the claim arose and not later　
than
　　ars　after　the　occurrence　or,　if　there　is　more　than　
one　such
　　rrence, the first of such occurrences resulting in　the　
discharge　or
　　pe by reason of which the liability was incurred.
　　
　　Compulsory insurance against liability for oil pollution
　　Subject to section 19, subsection (2) applies to any ship carrying　
in
　　a cargo of more than 2,000 tons　of　persistent　oil　as　
defined　in
　　lations made under this section.
　　A ship to which this subsection applies shall not enter or leave--
　　the waters of Hong Kong; or
　　if the ship is a Hong Kong ship, a port in　any　other　country　
or　a
　　inal installation in the territorial sea of any other country,　
unless
　　e is　in　force　a　certificate　complying　with　subsection　
(4)　and
　　ifying that there is in force in respect of the　ship　a　
contract　of
　　rance or other security satisfying the requirements of Article

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