With a view to dealing properly with general average adjustment on the basis of equality and mutual benefit so as to enhance friendly relations among peoples of different countries and promote the development of international trade and marine transport, the China Council for the Promotion of International Trade has adopted the present Provisional Rules and set up the Department for Average Adjustment.

The following extraordinary loss or damage and reasonable extra expenses arising from measures properly taken for relieving a ship, cargo, etc., from common danger caused by natural calamities, accidents and/or other extraordinary circumstances in marine transport shall fall within the scope of general average:—

1. Loss or damage reasonably caused to the ship, cargo, etc., for rescuing the same from danger;

2. Extra expenses incurred by the ship for entering a port of refuge, port charges incurred during the extra period of detention of the ship in a port of refuge and extra expenses for the ship’s leaving the port of refuge subsequently with her original cargo or a part thereof;

3. Crew’s wages and maintenance incurred as well as fuel and stores consumed during the prolongation of the voyage occasioned by the ship proceeding to a port of refuge and during the extra period of detention of the ship in a port of refuge;

4. Salvage expenses, expenses for forced discharge and reloading of the cargo, etc., and other extra expenses.

Where the ship needs repairs for the safe completion of the voyage in consequence of damage caused by an accident during the voyage, the port charges, crew’s wages and maintenance and fuel and stores necessarily incurred or consumed during the reasonable period of detention of the ship in the port of repair, as well as the expenses and loss or damage arising from such discharging, reloading and handling on board of the cargo, etc., as are required for the repairs, may under the present circumstances be admitted as general average.

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. Unless otherwise agreed upon by and between the ship and cargo interests, the amount so allowable shall not exceed the amount of the expense saved.

With the exception of loss or damage and expenses referred to in the above three paragraphs, any other indirect loss, including loss or damage and expenses through delay, shall not fall within the scope of general average.