REPUBLIC OF LITHUANIA
LAW ON MERCHANT SHIPPING
12 September 1996 No I-1513
(As last amended on 12 December 2017 – No XIII-878)
Vilnius
CHAPTER ONE
GENERAL PROVISIONS
Article 1. Purpose and scope of the Law
1. This Law regulates relations arising in relation to carriage of cargo, passengers and luggage on marine ships, peculiarities of work on board and social guarantees for seafarers, also regulates other civil legal relations related to maritime shipping by sea to the extent that these relations are not covered by international treaties of the Republic of Lithuania.
2. This Law and other legal acts adopted on the basis thereof shall not apply to warships and coast guard vessels of the Republic of Lithuania.
3. The provisions of this Law have been harmonized with the legal acts of the European Union listed in the Annex to this Law.
Article 2. Definitions
1. General emergency shall mean losses sustained when any extraordinary expenditure or sacrifice is intentionally or reasonably made for the rescue of a ship, freight, and cargo carried on the ship from an overall risk.
2. Contract of towage at sea shall mean a contract by which the manager of a ship undertakes, for remuneration, to tow another ship or other floating object.
3. Bareboat charter shall mean a fixed term contract, under which the ship tenant has the right to manage the ship, including the tenant's right to appoint the master and crew of the ship for the lease period.
4. Demurrage shall mean the berthing fee set in the chartering contract paid by the charterer to the manager of a ship.
5. Dispatch money shall mean money payable by the ship manager to the charterer or receiver for any time saved in loading or discharging.
6. Claims adjustment shall mean the document where the total amount of losses of the general emergency and the division thereof among the ship manager, cargo and freight owners are recorded.
7. Claims adjuster shall mean an expert who produces the claims adjustment.
8. Freight shall mean transportation charges payable to the ship manager for cargo carried by ship.
9. Seagoing ship shall mean a ship designed and built for navigation in seawaters and issued the documents certifying that.
10. Seafarer shall mean any person, including the master of a ship who is employed or engaged or works any kind of work on board, with the exception of persons whose main work is carried out on shore and they work on board only casual work not associated with the day to day operations of the ship.
11. Sea cruise contract shall mean a contract whereby the cruise organiser obligates himself to arrange for the passengers a sea voyage following a certain programme and to provide related services to the participants, whereas the participants in the sea voyage obligate themselves to pay the organiser the charges in the fixed amount.
12. Contract of carriage of passengers by sea shall mean an agreement under which the carrier undertakes obligation to transport a passenger by a seagoing ship from one port to another, and if the passenger gave the luggage to transport it to the port of destination and deliver it to a person authorised to receive it; the passenger undertakes the obligation to pay fixed charges for transportation, and if the luggage is given - for transportation of the luggage as well.
13. Repealed as of 23 July 2003.
14. Repealed as of 23 July 2003.
15. Contract of carriage of goods by sea shall mean an agreement under which the carrier undertakes obligation to transport the given cargo by sea to the port of destination and give the cargo to the authorised person (the recipient), and the sender (recipient) undertakes obligation to pay the freight for the transportation of the cargo.
16. Repealed as of 23 July 2003.
17. Repealed as of 1 May 2015.
18. Repealed as of 1 May 2015.
19. Ship mortgage shall mean pledge of a ship securing the current or future liability when the pledged ship is not transferred to the creditor.
20. Ship leasing contract with an option to purchase shall mean a contract whereby the shipowner undertakes obligation to provide a ship without a crew for a specified period and for a fee to the lessee and transfer the ship to his ownership upon the termination of the lease period, and the lessee undertakes obligation to receive the ship and pay for it a certain agreed amount of money, including the amount which he paid for the use of the ship.
21. Chartering contract shall mean the agreement according which the manager of a ship (the owner) undertakes the obligation to allow the other party (the charterer) to use for a fee the ship or a part of it for transporting the cargo, passengers or luggage.
22. Repealed as of 1 May 2015.
23. Voyage of a ship shall mean a journey of a ship from one port to another irrespective of whether a ship transports a cargo or passengers or not. The time required to load or unload the ship at the port or embark and disembark the passenger shall also be included into the time of the voyage of a ship. Voyage of a ship shall also mean a journey of a fishing ship from the moment of leaving the port until the first sale of fish upon return to the port when this sale is carried out by the crew of a ship.
24. Manager of a ship shall mean a person who uses the ship, regardless of the fact whether or not he is the owner of the ship, or makes use of it on some other legal basis.
25. Owner of a ship shall mean the person who has the right of ownership to the ship.
26. Shipping agency contract shall mean an agreement by which one party (the agent of a ship) undertakes obligation to provide shipping agency services, and the other party (the owner, charterer or another legitimate manager of a ship) to compensate for provision of these services.
27. Carrier shall mean the ship owner or charterer who concludes the contract regarding transport by sea.
28. Seafarer voyage shall mean uninterrupted period when the sailor carries out his assigned duties or performs work assigned on board a ship, including the time for a voyage to the ship and from the ship to a permanent place of residence.
29. Rescuer shall mean the person providing services directly related to the rescue operations.
30. Repatriation shall mean the totality of financial, legal and other measures taken by the ship manager and the state whose flag the ship is flying in order to ensure the seafarer's return home.
31. Fisherman shall mean every seafarer working on board any fishing vessel.
32. Other concepts used in this Law shall be interpreted as they are used in the Republic of Lithuania Law on Transport Framework and the Republic of Lithuania Law on Maritime Safety.
Article 3. The right to provide maritime cabotage services
Maritime cabotage services within the meaning of Council Regulation EEC No. 3577/92 applying the freedom to provide services to maritime transport within Member States (maritime cabotage) of 7 December 1992 may be provided in the Republic of Lithuania.by ships flying the Lithuanian flag and ships which are granted such a right under this Regulation.
Article 4. State management of merchant shipping
1. State management of merchant shipping in the Republic of Lithuania shall be carried out by the Ministry of Transport and Communications within the limits of its competence.
2. In accordance with this Law, other legal acts and international treaties of the Republic of Lithuania , the Ministry of Transport and Communications shall issue binding legislation in the area of merchant shipping, the Ministry of Social Security and Labour together with the Ministry of Transport and Communications - in the area of seafarers' working conditions, safety and health, and the Ministry of Health together with the Ministry of Transport and Communications - in the area of seafarers' health care, shall organize, coordinate, and control the implementation of these legal acts.
3. Repealed as of 1 November 2015.
Article 41. Repealed as of 1 July 2008.
Article 42. Certification and supervision of activities of natural persons and companies wishing to provide shipping agency services
1. In the Republic of Lithuania, citizens of the Republic of Lithuania, other Member States of the European Union or other countries of the European Economic Area as well as foreign nationals or stateless persons having a temporary or permanent residence permit in the Republic of Lithuania (hereinafter in this Article: 'natural persons'), undertakings established in the Republic of Lithuania and branches of undertakings established in Member States of the European Union and other countries of the European Economic Area (hereinafter in this Article: 'undertakings') may provide shipping agency services for an indefinite period.
2. The procedure of certification of natural persons and undertakings (hereinafter in this Article: 'persons') willing to provide shipping agency services shall be established by the Minister of Transport and Communications.
3. The Lithuanian Transport Safety Administration (hereinafter: the ‘Transport Safety Administration’) shall enter persons on the list of certified persons, warn about the suspension of the certification, suspend the certification, revoke the suspension of the certification and withdraw the certification, as well as carry out supervision of activities of certified persons.
4. Persons wishing to provide or providing shipping agency services must meet the following requirements:
1) they have no debts to the management company of the port;
2) a natural person or head of the undertaking (or the employee of the undertaking authorized by the manager of the undertaking) who is in charge of shipping agency services must have no previous convictions for crimes against the economy, business practice and financial system;
3) a natural person or head of an undertaking (or the employee of the undertaking authorized by the manager of the undertaking) who is in charge of shipping agency services must have knowledge of English (the official language used in shipping), have a university degree in marine engineering in the field of technological sciences or education in marine technology and at least five years of work experience directly related to shipping agency;
4) have equipment, facilities, information receiving and transmission means owned or managed on other legitimate basis that are necessary to perform certified shipping agency activities. The Transport Safety Administration shall approve the list of equipment, facilities, information receiving and transmission means necessary to perform certified shipping agency activities.
5. Persons wishing to provide shipping agency services shall, in accordance with the procedure laid down by the Minister of Transport and Communications, submit to the Transport Safety Administration an application and other documents evidencing the compliance with the requirements set out in points 1, 3 and 4 of paragraph 4 of this Article. In accordance with the Law of the Republic of Lithuania on Legal Protection of Personal Data, the Transport Safety Administration shall have the right to obtain personal data, including special personal data, necessary to verify the information specified in paragraph 4 of this Article from the state registers or information systems.
6. A person may provide shipping agency services the next working day after his certification and entry on the list of certified persons. A paper document certifying the person's entry on the list of certified persons shall not be issued.
7. The procedure of adoption of a decision regarding the approval of certification of a person and of approval (non-approval) of certification of a person shall be as follows:
1) a written decision to approve the person's certification and enter him on the list of certified persons or a reasoned refusal to do so (unless it is established that the person does not comply with the requirements set out in paragraph 4) is taken within 20 working days from the receipt of the application and all necessary documents. Having adopted a reasoned decision to extend the time limit referred in this paragraph, the Transport Safety Administration must, before the deadline, inform the person about the extension of the said time limit and the reasons for such extension. This time limit may be extended once for a period not longer than 10 working days in cases where the decision to certify a person and enter him on the list of certified persons or a reasoned refusal to do so may not be adopted in time due to the factors beyond the control of the Transport Safety Administration. In the absence of a response to a duly executed application for certification, accompanied by all the documentation and information necessary for entering on the list of certified persons within the time period set out in this point, it shall be assumed that a person has been certified and such person shall be added to the list of certified persons;
2) the Transport Safety Administration, within five working days of the receipt of the documents submitted by a person wishing to be certified, sends in accordance with the procedure established by the Minister of Transport and Communications the acknowledgement of the receipt of the documents; having identified that submitted documents do not justify the person's compliance with the requirements specified in points 1, 3 and 4 of paragraph 4 of this Article, not all the documents have been submitted or the documents contain false and/or inaccurate data, the Transport Safety Administration, together with the acknowledgement to be sent to the person, indicates specific documents and/or data that are requested to be submitted or adjusted and sets a time limit of five working days (from the receipt of the acknowledgement) for elimination of the shortcomings. The time during which the person submits the missing documents and/or data shall not be included into the time limit for taking a decision regarding certification of the person;
3) having identified that a person complies with the requirements set in paragraph 4 of this Article, the Transport Safety Administration immediately enters the person on the list of certified persons and informs him about that within two working days from the moment of the entry on the list of certified persons. If it is identified that the person does not comply with the requirements set out in paragraph 4 of this Article, the Transport Safety Administration shall take a decision not to certify the person and, within two working days from the adoption of this decision, inform him thereof.
8. The Transport Safety Administration having identified that a certified person infringes the requirements set out in points 1, 3, 4 of paragraph 4 and in paragraph 13 of this Article shall, without delay but not later than within two working days after the identification of the infringement, warn the person about the possible suspension of his certification and determine a time limit of not less than 10 working days and not more than 20 working days after the receipt of the warning of the potential suspension of his certification during which the infringements identified must be put to an end. A person who within the set time limit put all the infringements to an end must notify about that the Transport Safety Administration by submitting supporting documentation. If the infringements are not put to an end within the set time limit, the Transport Safety Administration shall decide on the suspension of the person's certification. Upon receipt of the decision of the Transport Safety Administration to suspend the person's certification, the person shall be prohibited to carry out the certified activities.
9. Having suspended the person's certification, the Transport Safety Administration shall, immediately but not later than within two working days after the adoption of a decision to suspend the person's certification, notify the person warning him about the possible withdrawal of his certification and instructing him to put the infringements to an end within 30 working days (upon a reasoned request of the person, the time limit for putting the infringements to an end may be extended up to six months) from the receipt of the notification. Having put the infringements to an end, the person shall submit the supporting documents certifying that to the Transport Safety Administration which examines them within five working days from the receipt of these documents and having identified that the infringements are put to an end adopts a decision to revoke the suspension of the person's certification and inform the person about that within two working days from the moment of revocation of the suspension of the person's certification.
10. The Transport Safety Administration shall withdraw the person's certification and immediately, but not later than within two working days of the adoption of the decision to withdraw the person's certification, inform the person (except for the case specified in point 6 of this paragraph when it is established that a person is liquidated, or the case specified in point 7 of this paragraph), where:
1) a person submits an application to withdraw his certification;
2) a person repeatedly infringes within a period of one year after the identification of his first infringement the requirements set out in paragraph 13 of this Article;
3) a person does not comply with the requirements set in point 2 of paragraph 4 of this Article;
4) a person does within the prescribed time limit put to an end the infringements entailing the suspension of the person's certification or does so improperly;
5) a person, whose certification was suspended and who was informed about this and failed to put to an end the infringements entailing the suspension of his activities, continues to carry out the certified activities;
6) during the inspection of the person's activities, it is identified that the person is liquidated or no longer carries out shipping agency activities (for a period of one year or more);
7) it is established that the certified natural person died.
11. The Transport Safety Administration or a person referred to in this Article shall submit the documents directly, at a distance, by electronic means or by electronic means through a contact centre specified in the Law of the Republic of Lithuania on Services.
12. The decisions of the Transport Safety Administration not to certify a person, to suspend or withdraw his certification may be appealed against in accordance with the procedure laid down in the Law of the Republic of Lithuania on Administrative Proceedings.
13. Certified persons:
1) shall adhere to the requirements of legal acts of the Republic of Lithuania and international legal acts regulating certified activities;
2) shall not have the right to authorize or to transfer under the agreement the right to carry out the certified activities to other persons;
3) must conclude an agreement with the port management company on the procedure of payment of port dues; the port management company may specify in this agreement that the certified persons must have a guarantee issued by the bank registered in the Member State of the European Union or the country of the European Economic Area or a surety insurance contract (for one insured event) issued by an insurance company according to which the beneficiary is the port management company, or may specify that the port dues are paid in advance of the ship's arrival to the port;
4) must notify the Transport Safety Administration about the changes in their data (the name, legal form, registration number, address and mailing address of the legal entity; the full name, address for correspondence of a natural person) not later than within five working days from the moment of the change of such data.
14. Rules of regular and random inspections of activities of certified individuals shall be approved and such inspections shall be carried out by the Transport Safety Administration.
15. A state fee of the Republic of Lithuania shall be charged for persons' certification.
Article 5. Legal acts regulating merchant shipping
1. Legal acts of the Republic of Lithuania and other legislation shall be applicable to the ships registered in the Republic of Lithuania and located beyond the boundaries of the territory of the Republic of Lithuania to the extent they do not contradict the legislation of the state in whose territory said ships are located or unless this Law provides otherwise.
2. Legal acts of foreign states shall be applicable to the ships of said states within the territory of the Republic of Lithuania provided that these legal acts do not contradict the requirements of the legal acts of the Republic of Lithuania.
3. Should the treaties to which the Republic of Lithuania is a party prescribe other rules than those laid down by the legislation of the Republic of Lithuania regulating the relations of merchant shipping, the provisions of the treaties and international conventions shall apply.
4. The right of ownership to the ship sailing beyond the territorial boundaries of the Republic of Lithuania shall be determined based on the laws of the state whose flag the ship is sailing under. The right of ownership of the ship being built shall be determined on the basis of the laws of the state where the ship is being built, unless the ship building contract provides otherwise.
5. The legal status of the ship’s crew shall be determined by the legal statutes of the state whose flag the ship is sailing under. The relations between the ship’s crew and the ship manager shall be determined by the legal acts of the state whose flag the ship is sailing under, unless the agreement regulating said relations provides otherwise.
6. The right to the property (the ship, its wreckage, equipment, cargo, etc.) sunken within the internal waters or territorial sea waters, and also the relations arising because of the property shall be regulated by the laws of the state within whose territory the property lies. In case of a ship sunken in the open sea, the laws applicable to it shall be those of the state under whose flag she was sailing.
7. Relations with regard to the carriage of goods by sea shall be regulated by the laws referred to by the parties to the contract of carriage of goods by sea. Unless the parties to the said contract agree otherwise, the relations relating to the carriage of goods by sea shall be regulated by the laws of the carrier’s state.
8. Relations with regard to the carriage of passengers and luggage by sea shall be regulated by the regulations of the carrier’s state, unless the parties agree otherwise.
9. Relations regarding the chartering of the ship shall be regulated by the laws of the shipowner’s country, whereas relations with regard to the ship leasing contract with an option to purchase shall be regulated by the laws of the lessor’s country, unless the parties agree otherwise.
10. Relations with regard to the contract of towage at sea shall be regulated by the laws of the country of conclusion of the contract, unless the parties agree otherwise.
11. Relations with regard to the general average shall be regulated by the laws of the country in whose seaport the ship completed its voyage following the event which had caused general average. If the persons who sustained losses by reason of general average come from one state, the laws of the state shall apply. In case the general average has to be apportioned in the Republic of Lithuania, the apportionment shall be effected under this Law.
12. Relations with regard to the collision of ships in the territorial sea shall be regulated by the laws of the country in whose territorial sea the collision took place. In case the ships collided in the open sea, and the dispute is being considered in the Republic of Lithuania, the regulations laid down in this Law shall apply. If the ships in collision were flying the Lithuanian flag, this Law shall be applicable regardless of the place of the collision.
13. If the ship caused losses for the indemnification whereof the rules set out in paragraph 12 of this Article are not applicable, the losses caused by the ship shall be made good in accordance with the laws of the state in whose territory the event which caused the losses, and for which damages are claimed, occurred, and in case the losses were caused in the open sea, they shall be made good in accordance with the laws of the state under whose flag the ship which caused the losses is sailing.
14. Laws of the state in whose territory the salvage services were rendered shall apply to relations in respect of remuneration for salvage at sea. If salvage services were rendered in open sea and the dispute is considered in the Republic of Lithuania, the provisions of this Law shall apply, unless the parties have agreed otherwise. The laws of the state under whose flag the ship was sailing shall be applied when distributing the remuneration among the manager and the crew of the ship used for salvage operations and also among the individual members of the ship’s crew.
15. Agreements provided for by this Law may stipulate conditions regarding the application of foreign merchant shipping laws and customs, provided this does not annul or limit the carrier’s liability prescribed by this Law for harm caused to the passengers’ health or life, or for the loss, shortage in or damage to cargo or luggage.
16. Regulation (EU) No 1177/2010 of the European Parliament and of the Council of 24 November 2010 concerning the rights of passengers when travelling by sea and inland waterway and amending Regulation (EC) No 2006/2004 (hereinafter: 'Regulation (EU) No 1177/2010') shall apply to passengers travelling in accordance with the conditions specified in paragraphs 1 and 2 of Article 2 of this Regulation.
17. Property disputes related to merchant shipping involving a foreign natural or legal person may, by agreement between the parties, be referred for consideration to the court or arbitration of the foreign state.
18. Provisions of civil, administrative, labour and other laws of the Republic of Lithuania shall apply accordingly to civil and administrative relations, also relations concerning work on board a ship and other legal relations, arising from marine shipping and not falling within the sphere of regulation of this Law.
CHAPTER TWO
A SHIP
Article 6. General requirements
1. Every marine ship used for navigation must be registered in the Register of Seagoing Ships of the Republic of Lithuania. Sea-going ships shall be held equivalent to items of immovable property.
2. A ship must have its name given by the owner of a ship in accordance with the procedure laid down by the Minister of Transport and Communications of the Republic of Lithuania.
3. Ships carrying out the obligations of the State of Lithuania upon the authorisation of the Government of the Republic of Lithuania may not be seized, mortgaged or transferred to anyone. Claims related to these ships shall be presented to the Government of the Republic of Lithuania.
Article 7. Flag of a ship
1. The right to sail under the Lithuanian flag shall be granted to ships which are registered in the Register of Seagoing Ships of the Republic of Lithuania.
2. A ship acquired abroad shall enjoy the right to sail under the Lithuanian flag from the moment when a temporary certificate is issued by a consular officer of the Republic of Lithuania confirming such right. The temporary certificate shall be valid for three months; however, if the ship is registered in the Register of Seagoing Ships of the Republic of Lithuania before the end of the three-month period, the validity of the temporary certificate shall expire on the date on which the ship is registered in the said Register.
3. The ship, registered in the Register of Seagoing Ships of the Republic of Lithuania and flying the Lithuanian flag may not change it for a flag of another foreign state during the ship voyage or stay in port, except for the case of the bareboat charter.
4. Persons guilty of displaying the Lithuanian flag on a ship lacking the right to such a flag shall be held liable under laws of the Republic of Lithuania.
5. Together with the Lithuanian flag other flags may be displayed on a ship in accordance with the procedure laid down by legal acts of the Republic of Lithuania.
Article 8. Registration of ships
1. A ship shall be registered in the Register of Seagoing Ships of the Republic of Lithuania provided it is designed and built for navigation at sea and holds the supporting documents certifying that, and the owner of the ship is a citizen of the Republic of Lithuania or a legal person registered in the Republic of Lithuania.
2. A ship registered in a foreign country may be temporarily registered in the Register of Seagoing Ships of the Republic of Lithuania provided it is leased according to the bareboat charter to a citizen of the Republic of Lithuania or a legal person registered in the Republic of Lithuania.
3. Seagoing ships under construction may be registered in the Register of Seagoing Ships of the Republic of Lithuania provided that:
1) the project of a ship under construction has been prepared and agreed in accordance with the procedure provided for by laws of the Republic of Lithuania and other legal acts;
2) a contract to carry out construction works has been concluded;
3) at least 20 percent of the construction works of the shell of a ship have been completed;
4) the owner of a ship is a citizen of the Republic of Lithuania or a legal person registered in the Republic of Lithuania.
4. The Register of Seagoing Ships of the Republic of Lithuania shall be established and the regulations thereof approved by the Government of the Republic of Lithuania.
5. The manager of the Register of Seagoing Ships of the Republic of Lithuania shall be the Ministry of Transport and Communications, while the administrator of this Register shall be appointed by the Government.
Article 9. Nationality of a ship
A ship registered in the Register of Seagoing Ships of the Republic of Lithuania and flying the Lithuanian flag shall have the nationality of the Republic of Lithuania.
Article 10. Repealed as of 1 October 2000.
CHAPTER THREE
THE CREW OF A SHIP
Article 11. Crew composition
The crew of a ship (including a master of a ship) must be composed of at least one half of the citizens and other natural persons of the Republic of Lithuania, other Member States of the European Union or other countries of the European Economic Area and Swiss Confederation (hereinafter: a 'Member State') who exercise the rights of movement within Member States conferred upon them by legal acts of the European Union. Only citizens of a Member State may assume the duties of a master of a ship. The master of a ship transporting passengers and/or cargo to/from ports of the Republic of Lithuania or at least one of the mates of the master of the ship must be proficient in the Lithuanian language.
Article 12. The master of a ship
1. The master shall be appointed and the employment agreement shall be concluded with him by the owner of a ship. In case of a bareboat charter, the master of a ship shall be appointed and the employment agreement with him shall be concluded by the ship tenant.
2. The master of a ship shall be the representative of the manager of a ship on board the ship.
Article 13. Rights, obligations and responsibilities of a master of a ship
1. The master of a ship shall be the sole commander of the ship. The members of the crew and the passengers shall be subordinate to the master of a ship. The master of a ship shall be responsible for the safety of the ship, the ship’s crew, the passengers and the cargo.
2. The master of a ship shall be guided by laws and other legal acts of the Republic of Lithuania and shall supervise compliance with them on board the ship. The orders of the master of a ship shall be compulsory to all those present on board the ship.
3. If the conduct of a person on board endangers the safety of a ship, or of the persons or property on board, the master may place such person in an isolated compartment and confine him there until the arrival of the ship at the port of the Republic of Lithuania. Any unlawful confinement in an isolated compartment shall render the master liable in accordance with the laws of the Republic of Lithuania.
4. If, while a ship is on a voyage, an act is committed on board specified in criminal laws of the Republic of Lithuania, the master of the ship acting in compliance with laws of criminal procedure of the Republic of Lithuania and other legal acts shall perform the functions of a pre-trial investigation officer.
5. The master of a ship shall have the right to detain a person suspected of having committed a criminal act until his transfer to the competent police officer at the port in the Republic of Lithuania. If necessary, the master may send such person and pre-trial investigation material to the Republic of Lithuania on another ship sailing under the State flag of the Republic of Lithuania.
6. If, while a ship is in the port of the Republic of Lithuania, an act is committed on board which is specified in criminal laws of the Republic of Lithuania, the master of the ship must transfer the person guilty of commission of the said act to the police.
7. The master of a ship may suspend any member of the crew from exercising his official duties if his actions (negligence) may endanger or have endangered the ship’s safe navigation, have created or may create conditions for inflicting any kind of damage on the ship, also on the persons and goods on board.
8. The master of a ship shall be the representative of the cargo-owner in concluding transactions with regard to the cargo, also in case of any cargo-related disputes, provided that no other representative of the cargo-owner is available.
9. If a child is born on board, the master of a ship shall record his birth. Apart from the master of a ship, such record shall be signed by two witnesses, the ship’s doctor or the medical assistant, provided they are members of the ship’s crew. An entry about the child's birth shall be made in the ship’s log. The birth record shall not substitute the birth certificate and must be filed with the civil registration office for the receipt thereof.
10. The master of a ship shall attest the will drawn up by a person on board, take it into safekeeping and transfer it to the notary’s office of the testator’s last place of permanent residence. If the testator’s last place of permanent residence or the notary’s office is unknown, the will shall be transferred to the Chamber of Notaries of the Republic of Lithuania.
11. If a person dies on board, the master of a ship shall draw up an act of death. Apart from the master of a ship, such an act of death shall be signed by two witnesses, the ship’s doctor or the medical assistant, provided they are members of the ship’s crew. An entry about the person's death shall be made in the ship’s log. An inventory list of the belongings and documents of the deceased which are on board shall be appended to the act of death. The master of a ship shall take measures to preserve the belongings of the deceased. On arrival at a port in the Republic of Lithuania the master of a ship shall transfer the act of death to the civil registration office, and the will and the list of the belongings of the deceased - to the notary’s office. Where the ship has to remain on the high seas for a long time and the body of the deceased cannot be preserved, the master of a ship shall be entitled to commit the body to the sea in accordance with the maritime custom, record such burial in an appropriate document, and make a corresponding entry in the ship’s log.
12. In case during the ship voyage, the master of a ship died or due to other circumstances cannot perform his duties, the chief mate shall temporarily carry out his duties. Before the ship sails to the next port, the manager of a ship must appoint a new master of a ship.
13. If a ship is faced by unavoidable loss, the master of this ship shall, after taking every measure to save the passengers, permit the crew to leave the ship. The master of the ship shall also do everything in his control to save the ship’s log, the engine log and the wireless log, the charts of the voyage and other papers. The master of a ship shall leave the ship last.
14. Disciplinary, administrative, criminal or civil action shall be taken against the master of a ship for failure to fulfil or properly fulfil the obligations specified in this Law.
CHAPTER FOUR
CONTRACT OF CARRIAGE OF GOODS BY SEA
Article 14. Carriage of goods by sea
1. The conclusion of a contract of carriage of goods by sea and its content shall be confirmed by bill of lading or other document.
2. Goods shall be carried by sea in accordance with the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading ("Hague Rules") of 1924, as amended by Protocol to Amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading ("Visby Rules") of 1968 and amended by Protocol (SDR Protocol) amending the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading of 25 August 1924 (The Hague Rules), as amended by the Protocol of 23 February 1968 (Visby Rules).
3. The regulations set forth in this Chapter shall be applicable if an agreement between the parties does not provide otherwise.
Article 15. Issuance of a bill of lading and documents to the carrier
1. Conditions for the issuance of a bill of lading shall be regulated by the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading ("Hague Rules") of 1924, as amended by Protocol to Amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading ("Visby Rules") of 1968 and amended by Protocol (SDR Protocol) amending the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading of 25 August 1924 (The Hague Rules), as amended by the Protocol of 23 February 1968 (Visby Rules).
2. Such terms and conditions of the contract of carriage of goods by sea that are not inserted in the bill of lading shall be binding upon the consignee if the bill of lading refers to the document containing them.
3. The shipper shall in due time transfer to the carrier all documents pertaining to the goods, required by the port, customs, sanitary or other administrative regulations, and shall be liable to the carrier for the losses caused by any delay in the transfer of the documents, by their defects or incompleteness.
Article 16. Repealed as of 2 June 2004.
Article 17. Repealed as of 2 June 2004.
Article 18. Repealed as of 2 June 2004.
Article 19. Repealed as of 2 June 2004.
Article 20. Packing of goods
Goods which require packing to protect them shall be presented to the carrier in a container or packing which is in good condition and corresponds to international standards, technical conditions or conditions laid down in the contract of carriage of goods by sea.
Article 21. Ship-to-ship transfer of goods
If the goods must be carried on a specific ship, they may only be loaded on another ship with the consent of the shipper, except where reloading results from technical necessity arising after the commencement of the loading.
Article 22. Stowage of goods on the ship
1. The goods shall be stowed on the ship at the discretion of the master of a ship.
2. The shipper and carrier of goods may agree on the stowage of goods on the deck of the ship. If the carrier stowed the goods on the deck at his own discretion, he shall be liable for the loss of or damage to the goods or delay in the delivery of the goods to the place of destination if this results from carriage of goods on the deck.
Article 23. Freight
1. The amount of the freight shall be established by agreement between the parties to the contract of carriage of goods by sea. In the absence of such agreement the amount of the freight shall be calculated based on the rates applicable in the port to the loading of goods on the day of their loading on board the ship.
2. The carrier shall have the right to refuse delivering the goods to the consignee until the freight or other amounts due to the carrier are paid or guarantees of payment are presented.
3. The freight and other charges due to the carrier shall be paid by the shipper of goods or the charterer if the contract of carriage of goods by sea does not make the consignee liable for said payments.
4. Where the value of the goods loaded does not cover the freight and other expenses of the carrier and the shipper of the goods has not paid the full freight before departure of the ship and has not given payment guarantees, the carrier may cancel the contract of carriage of goods by sea, unload the goods and demand payment of half of the agreed freight, of the demurrage, if any, and of any other expenses incurred by the carrier in this respect.
5. The full freight shall be payable for the goods lost or damaged in the course of carriage through no fault of the carrier. Where the goods have been lost due to shipwreck or other accident or seizure of the ship by force, no freight shall be payable and if the freight has been paid in advance, it shall be returned. Where the goods are saved, the carrier shall be entitled to freight in proportion to the distance actually covered by the ship with goods on board.
6. Full freight shall be payable for the carriage of goods lost or damaged during the carriage because of their natural properties or as a result of causes which are within the carrier’s control.
Article 24. Mortgage of goods
1. The carrier shall be entitled to demand the shipper to pledge the goods presented for carriage as a security for the payment of freight and other amounts due to the carrier for the carriage of goods by sea under the contract.
2. The agreement for the mortgage of goods shall be concluded and implemented in compliance with the provision of the Civil Code of the Republic of Lithuania.
3. The carrier, not having received the freight due to him and also other charges under the contract of carriage of goods by sea, shall have the right to sell the pledged goods upon a prior written notice sent to the shipper or charterer and the consignee.
4. If the funds received from the sale of the pledged goods are insufficient for the full satisfaction of the carrier’s claims, the carrier shall have the right to demand that the shipper or the charterer pay the missing amount.
Article 25. Withdrawal of the contract of carriage of goods by sea
1. Where an entire ship has been provided to carry the goods, the consignor shall be entitled to withdrawal of the contract of carriage of goods by sea on paying:
1) half of the full freight and the demurrage, if any, and any amounts spent by the carrier on account of the goods, which are not included in the freight, if the carrier withdraws the contract before the expiry of the agreed lay days or demurrage time or before the sailing of the ship, whichever is the earlier;
2) the full freight and other amounts mentioned in point 1 of paragraph 1 hereof, if the shipper withdraws the contract of carriage of goods by sea concluded for one voyage after the expiry of the lay days or demurrage time or after the sailing of the ship;
3) the full freight in respect of the first voyage, other amounts specified in point 1 of paragraph 1 hereof and half of the freight in respect of other voyages if the shipper withdraws the contract of carriage of goods by sea after the expiry of the lay days or demurrage time or after the sailing of the ship.
2. If the shipper withdraws the contract of carriage of goods by sea before the sailing of the ship, the carrier shall return the goods to him even though the unloading would detain the ship beyond the agreed time limits.
3. If the shipper withdraws the contract of carriage of goods by sea during the voyage, he shall have the right to demand the return of goods only in the port the ship has to enter under the contract of carriage of goods by sea or which he has entered in the event of extreme urgency.
4. Where less than an entire ship has been provided to the shipper under the contract of carriage of goods by sea, he may only repudiate the contract upon paying the full freight, the demurrage, if any, and any amounts expended by the carrier on account of the goods, which are not included in the freight. The carrier shall only comply with the shipper’s demand to return the goods before the delivery thereof to the place of destination if this is not detrimental to the carrier and the other shippers.
Article 26. Termination of the contract of carriage of goods by sea
1. Each of the parties to the contract of carriage of goods by sea shall have the right to terminate the contract without indemnifying the other party in any of the following circumstances which occur before the sailing of the ship:
1) acts of war or other activities which may create danger of seizure of the ship and goods;
2) blockade of the place of departure or of the place of destination of the goods;
3) detention of the ship by order of the authorities for reasons beyond the control of either party to the contract;
4) requisition of the ship for special needs of the state;
5) prohibition by the authorities of export from the place of departure or of import to the place of destination of the goods intended for carriage.
2. Each of the parties to the contract of carriage of goods by sea may in any of the circumstances set out in paragraph 1 hereof terminate the contract during the voyage as well. In this case the shipper shall pay the carrier the freight in the amount proportionate to the distance covered by the ship with the load on board and shall also compensate the carrier for all the expenses incurred by the latter in respect of the goods.
3. The contract shall be terminated by the parties without any of the parties having to compensate the other for losses arising from the termination of the contract if:
1) the ship is lost or seized by force;
2) the ship is found to be unseaworthy;
3) specifically described goods perish;
4) goods defined by generic characteristics perish after its delivery for loading and the shipper has insufficient time to replace those which perished.
4. In the circumstances specified in paragraph 3 hereof the contract of carriage of goods by sea may also be terminated during the voyage. In such case the carrier shall be paid the freight in proportion to the distance actually covered and also the expenses incurred by the latter in respect of the goods.
Article 27. Specific features of carriage of goods
1. (Repealed).
2. (Repealed).
3. Where an entire ship has been provided to carry the goods, but owing to prohibition by authorities, acts of the elements, or other causes beyond the carrier’s control the ship cannot enter the port of destination, the carrier shall forthwith notify the shipper of the goods thereof. If within a reasonable time after such notification is dispatched no instructions are received from the shipper as to the unloading of the goods in port, the master of a ship shall have the right to unload the goods in one of the nearest ports at his discretion or return the goods to the port of departure, depending on whichever in the opinion of the master of the ship seems more advantageous to the shipper.
4. Where less than the entire ship has been provided to carry the goods and the goods may not be delivered to the port of destination for reasons specified in paragraph 3 hereof, the master of a ship may, on the instruction of the shipper, unload the goods in another port. If no instruction regarding the port of unloading is received within three days after the sending of the notification of the master of a ship concerning the circumstances which emerged, the master of a ship may unload the goods in the nearest port having notified the shipper thereof. The master of a ship shall have the right to act similarly also where the shipper’s instruction cannot be fulfilled without causing damage to the owner of other goods on board a ship.
5. The shipper must compensate the carrier for all expenses connected with waiting for his instructions regarding the port of unloading of goods, also all other goods-related expenses, and must pay the freight in proportion to the distance actually covered by the ship.
Article 28. Repealed as of 2 June 2004.
Article 29. Delivery of goods for storage
1. Where less than an entire ship has been provided to carry the goods, and at the port of destination the consignee does not claim the goods or refuses to take delivery thereof, the carrier may, on notifying the shipper, store the goods in a warehouse or other safe place at the expense and risk of the shipper.
2. Where an entire ship has been provided to carry the goods and the consignee fails to appear or refuses to take delivery of the goods, the master must forthwith notify the shipper thereof. The unloading and storing of the goods in the port’s warehouse or other safe place at the expense and risk of the shipper shall only be effected by the master of ship on the expiry of the lay days and demurrage time and on condition that the shipper has not, within these time limits, given different instructions. Time spent by the carrier to unload and store the goods shall be regarded as demurrage time to be compensated for to the carrier by the shipper.
3. If, within two months from the day of the ship’s arrival at the port the stored goods are not claimed and the shipper does not pay to the carrier all the sums due in respect of the carriage, the carrier shall have the right to sell the goods. Unclaimed perishable goods may be sold before the expiry of the above mentioned period.
Article 30. Repealed as of 2 June 2004.
CHAPTER FIVE
CONTRACT OF CARRIAGE OF PASSENGERS BY SEA
Article 31. Contract of carriage of passengers by sea
1. Carriage of passenger shall cover the period during which a passenger is on board the ship or in the course of embarkation and disembarkation, and the period during which a passenger is transported by water from land to the ship and vice-versa, if the cost for such transport is included in the fare or if the ship used for this purpose of auxiliary transport has been put at the disposal of the passenger by the carrier.
2. The carrier shall issue a passenger a ticket which serves as evidence of conclusion of the contract. A luggage receipt shall be issued to a passenger to certify that his luggage has been received for carriage.
3. A passenger may not transfer to a third person without the carrier’s consent the rights conferred to him under the contract of carriage of passengers by sea.
4. The rules for carrying passengers and luggage by sea shall be approved by the Ministry of Transport and Communications.
5. The provisions of this Chapter shall be apply unless the parties determine otherwise. However, such agreement may not restrict the passenger’s rights specified in this Chapter.
Article 32. Provision of a ship for the carriage of passengers
1. Before providing a ship for the carriage of passengers and during the carriage, the carrier must show due diligence to:
1) make the ship seaworthy;
2) properly supply and man the ship;
3) properly equip the compartments and sections used for the carriage of passengers, their embarkation and disembarkation;
4) draw a list of passengers who arrived on ship.
2. The carrier shall have the right to postpone the voyage of the ship, to deviate from the course of the voyage by sea, or the place of embarkation or disembarkation where such acts are necessitated by a natural calamity effects, unfavourable sanitary or epidemiological conditions at the port of departure or arrival or on route, and also by other perils and circumstances which are beyond the carrier’s control and hinder compliance with the contract of carriage of passengers by sea.
Article 33. Termination of the contract of carriage of passengers by sea on the passenger's initiative
1. At any time before the ship’s departure, and, after the beginning of the voyage, in any port the ship calls at to take in or land passengers, a passenger may terminate the contract of carriage of passengers.
2. A passenger, who has notified the carrier of his termination of the said contract, may obtain back the money paid for the carriage and the carriage of the luggage in accordance with the procedure laid down in the Regulations of Carriage of Passengers and Luggage by Sea.
3. If a passenger terminates the contract within the time limits established by the Regulations of Carriage of Passengers and Luggage by Sea, or fails to come aboard by the time of departure owing to his sickness, or terminates the contract before the departure because of the circumstances for which the carrier is responsible, he shall be returned all the amounts paid for his carriage and for the carriage of the luggage.
Article 34. Termination of the contract of carriage of passengers by sea on the carrier's initiative
1. The carrier shall have the right to terminate the contract of carriage of passengers by sea if any of the following circumstances occur:
1) acts of war or other activities which may endanger the ship and passengers;
2) blockade of the ship’s port of departure or port of destination;
3) detention of the ship by order of the authorities for reasons beyond the control of either party to the contract of carriage of passengers by sea;
4) requisition of the ship for special needs of the State;
5) loss or forcible seizure of the ship;
6) the ship is found to be unseaworthy.
2. If the carrier terminates the contract before the departure of the ship, he must return a passenger all the sums the latter has paid for his carriage and for the carriage of his luggage, and if the carrier terminates the contract at the intermediate port, the passenger shall be returned the amount of the fare in proportion to the distance which remains to be covered to the port of destination.
3. In the cases provided for in this Article, the carrier who has terminated the contract of carriage of passengers by sea must at his own expense transport the passenger, at the latter’s request, to the port of departure.
Article 35. The carrier's liability in case of death or bodily injury of a passenger, loss, shortage in or damage of the luggage
1. The carrier shall be liable under the Civil Code of the Republic of Lithuania for infliction of death or any injury to the health of a passenger.
2. If international treaties to which the Republic of Lithuania is a party prescribe other conditions, procedure and extent of the carrier’s liability for infliction of death or any injury to the health of a passenger, the international treaties shall prevail.
3. The carrier shall be liable for any loss of, shortage in, or damage to the luggage received for transportation, for any delay in its delivery, unless he proves that this occurred through no fault of his. The carrier shall be liable for any loss of, shortage in, or damage to the cabin luggage only where a passenger proves that the loss, shortage, or damage resulted from malice or negligence on the part of the carrier. Luggage not claimed within three months from the day of the ship’s arrival at the port of destination may be sold in accordance with the procedure established by the Regulations of Carriage of Passengers and Luggage by Sea.
4. The carrier shall be liable:
1) for any loss of, shortage in, or damage to the luggage received for transportation with value declared, to the extent of the value declared. Where the carrier proves that the declared value exceeds the real value, to the extent of the real value;
2) for any loss of, shortage in, or damage to luggage received for transportation without any value having been declared, for any loss of, shortage in, or damage to hand luggage, to the extent of the value of the lost, missing, or damaged luggage, but not in excess of the limits prescribed by the Regulations of Carriage of Passengers and Luggage by Sea.
3) for any delay in the delivery of luggage, to the extent fixed in the luggage rating.
5. The carrier shall return the sums paid for the carriage of the lost or damaged luggage. The limitation of payment provided for by point 2 of paragraph 4 of this Article shall not be applicable if it is proved that the losses have been the result of the carrier’s deliberate actions or negligence.
Article 36. Cruise Contract
1. A cruise contract shall be executed in the voucher or any other document issued by the cruise organiser to the passenger going on a cruise.
2. A passenger going on a cruise shall have the right to terminate the cruise contract before the commencement of the cruise. Having notified the organiser of the cruise about the termination of the cruise contract, a passenger going on a cruise shall have the right to the refund of the entire amount or part of the sum paid for the cruise in the manner laid down in the contract. If the cruise organiser is not in the position to provide a passenger with accommodation on board a ship specified in the contract or in any other analogous ship, the passenger shall have the right to terminate the contract and to receive the entire amount paid.
3. The organiser of the cruise shall have the right to terminate the cruise contract if the circumstances specified in paragraph 1 of Article 34 of this Law occur.
4. Where the cruise organiser terminates the cruise contract before the ship’s sailing from the port of departure, the passengers going on the cruise shall be refunded the amounts they have paid. Where the cruise organiser terminates the cruise contract after the sailing of the ship from the port of departure, the passengers shall be returned the amounts paid in proportion to the distance which remains to be covered to the port of destination, and the passengers shall also be delivered to the port of departure at the expense of the cruise organiser.
5. Where the duration of the cruise is prolonged because of the circumstances that are beyond the carrier’s control, the cruise organiser shall compensate for the losses incurred due to these circumstances in relation to the servicing of the passengers on a cruise.
Article 361. Safeguarding of the rights of passengers and passengers on a cruise and handling of complaints
1. The Transport Safety Administration shall ensure the implementation of the provisions of Regulation (EU) No 1177/2010 as regards passenger transport and passenger on cruise services, with the exception of the handling of complaints of passengers and passenger on cruise concerning violations of their rights specified in this Regulation.
2. The State Consumer Rights Protection Authority shall handle complaints of passengers and cruise passengers as regards violations of their rights specified in Regulation (EU) No 1177/2010 in accordance with the procedure laid down by the Law on Consumer Rights Protection. Before submitting a complaint to the State Consumer Rights Protection Authority, a passenger or cruise passenger must submit a complaint to the carrier, cruise organiser or terminal operator.
CHAPTER SIX
CHARTERING CONTRACT, SHIP AGENCY CONTRACT, BAREBOAT CHARTER, SHIP LEASING CONTRACT WITH AN OPTION TO PURCHASE
Article 37. Chartering contract
1. Conditions for ship chartering shall be established in the chartering contract. The chartering contract may be concluded on a time or voyage basis. The chartering contract shall be concluded in writing.
2. The chartering contract must specify parties to the contract, the name of a ship, freight tariff, and the cargo to be transported. By agreement between the parties, additional provisions and conditions may be included in the chartering contract. The chartering contract shall be signed by the ship manager and the charterer or their representatives.
3. Pursuant to the chartering contract, the manager of a ship shall deliver to the charterer a manned ship. The charterer shall have the right to give instructions to the master of a ship regarding the use of a ship for the purposes specified in the chartering contract, however, the charterer shall not have the right to give instructions to the captain regarding the internal order on the ship, composition of the ship crew, and also operation of the ship.
4. The rules laid down in this Chapter shall be applicable in the absence of another agreement between the parties.
Article 38. Bareboat charter
A bareboat charter shall mutatis mutandis be subject to the provisions of Articles 41 to 43 of this Law.
Article 39. Delivery of a ship to the charterer
1. The ship manager must deliver the ship to the charterer in the condition which makes it suitable for the purposes identified in the contract.
2. The charterer must operate the ship in compliance with the conditions of the chartering contract.
3. The charterer shall be entitled to conclude, in his name, contracts of transport by sea, issue bills of lading or other alternative documents. The charterer shall be liable for the obligations arising from the contracts of transport by sea concluded by him and other documents signed by the charterer.
Article 40. Liability of the charterer
1. The charterer’s liability shall be specified in the chartering contract.
2. The charterer shall be liable for the losses related to the salvaging of, damage to or loss of the chartered ship, if said losses were sustained through the charterer’s fault. He shall also be liable for the obligations arising from the use of the provided ship.
3. In the event of loss of the provided ship the freight shall be paid for the period until the day of its loss and where it is impossible to establish the day - until the day of receipt of the last message about the loss of the ship.
Article 40(1). Ship agency contract
Ship agency shall cover provision of the following services:
1) intermediation in acquiring or transferring of ships;
2) intermediation in concluding a chartering contract and supervision of the implementation of the agreement;
3) collection and payment of freight and port charges, and other taxes and charges;
4) management of customs and cargo documents and other related services;
5) organisation of the ship's entry to and exit from the port, as well as of loading works;
6) organisation of ship's support and service in port.
Article 41. Concluding the ship leasing contract with an option to purchase
1. The ship leasing contract with an option to purchase shall be concluded in writing. The following must be stated in the ship leasing contract with an option to purchase:
1) parties to the contract;
2) subject matter of the contract;
3) ship’s name and date of building, class of a ship;
4) the ship’s technical and service characteristics (carrying capacity, cargo capacity, speed, etc.);
5) the period of the lease upon the expiry whereof the right of ownership of the ship will pass to the lessee;
6) the amount and schedule of the charge for leasing;
7) the place and time of transfer of the ship to the lessee;
8) liability of the parties to the contract;
9) other terms and conditions laid down by the parties to the contract.
2. The lessee shall become the manager of the ship and shall hire the ship’s crew, conclude in his name contracts of transport by sea, pay all running expenses, also the ship’s insurance expenses, and shall be liable for the obligations arising in relation to the use of the chartered ship.
Article 42. Delivery of a ship to a lessee
1. The owner of a ship must deliver the ship to the lessee in the condition allowing it to be employed in a manner consistent with the ship leasing contract with an option to purchase.
2. The owner of a ship shall be liable for the defects of the ship which surfaced prior to the ship’s delivery to the lessee if the owner of a ship failed to notify the latter of the defects when delivering the ship. The lessee shall be entitled within one year after he accepts the ship to file complaints against the owner of a ship in relation to the defects specified herein.
3. The lessee must take care of the technical condition of the ship and timely carry out repairs.
4. The risk of the ship’s accidental loss or damage shall pass on to the lessee from the moment of delivery of the ship to him on the basis of the ship leasing contract with an option to purchase.
Article 43. Termination of the ship leasing contract with an option to purchase
1. The lessee shall have the right to terminate the ship leasing contract with an option to purchase and claim damages if:
1) the owner of a ship fails to deliver the ship to the lessee by the due date as prescribed by the contract;
2) the defects which surfaced prior to the ship’s delivery to the lessee prevent her from being employed in a manner consistent with the ship leasing contract with an option to purchase.
2. The owner of a ship shall have the right to terminate the ship leasing contract with an option to purchase and request the ship to be returned if:
1) the lessee fails to pay the rent after the expiry of a three month period from the payment date;
2) deliberately or through negligence worsens the condition of the ship;
3) employs the ship in the manner inconsistent with the contract or not according to the ship’s purpose;
4) fails to fulfil other obligations assumed by the ship leasing contract with an option to purchase.
3. When the ship is returned, the owner of the ship shall be entitled to the unpaid amount of the rent for the use of the ship. The lessee shall be refunded the amounts paid as instalments for the ship.
4. The lessee must return the ship to the owner of the ship in the same condition as she was when delivered to him, taking into account the fair wear of the ship, or in the condition agreed upon in the contract. In the event of deterioration of the ship’s condition, the lessee must compensate the owner of the ship for the damage caused thereby.
CHAPTER SEVEN
CONTRACT OF TOWAGE AT SEA
Article 44. Concluding a contract of towage at sea
1. A contract of towage at sea may be concluded in writing or orally. Agreement to appoint the master of the towboat to be in command of the towage may be proved exclusively by documentary evidence.
2. Each party to a contract of towage at sea must prepare in advance his ship or other object fit for towage.
3. The manager of the towboat shall not be liable for any defects of his ship if he proves that they could not have been discovered prior to the conclusion of the contract of towage at sea (latent defects).
4. The rules laid down in this Chapter shall be applicable in the absence of another agreement between the parties.
Article 45. Liability of the parties to the contract of towage at sea
1. The manager of the towboat shall not be liable for the damage caused to the towed ship or other floating object or to any property on board thereof during the towage amidst ice-floats unless it is proved that the damage has been caused through the fault of the towboat.
2. In the absence of any other agreement by the parties, the manager of the towboat shall be held liable for the damage to the towed ship or other floating object or any property on board thereof, caused during the towage where the master of the towboat is in command of the towed ship or other floating object, unless he proves it was not his fault.
3. In the absence of any other agreement by the parties, the manager of the towed boat or other floating object shall be held liable for the damage to the towboat or the property on board, caused during the towage where the master of the towed ship or other floating object is in command of the towboat, unless he proves it was not his fault.
CHAPTER EIGHT
GENERAL AVERAGE
Article 46. Apportionment of general average
1. General average shall be apportioned among the ship, freight and cargo in proportion to their respective values. In this Chapter, a freight shall also mean payment for passenger transport and any charges for transport of passengers’ luggage. General average shall also be apportioned in the manner prescribed in this paragraph when the peril calling for extraordinary expenditure or sacrifice was due to the fault of one of the parties to the contract of carriage by sea or of a third person. However, this shall not prejudice any remedies which may be open to those involved in the general average against that person for such loss.
2. Articles 47-50 of this Law shall be applicable where the parties to the contract of carriage by sea do not agree otherwise.
Article 47. Losses and expenditure associated with general average
In the presence of the characteristics of general average referred to in Article 2 of this Law, the following shall be associated with general average:
1) losses resulting from jettison of cargo or of appurtenances of a ship, also losses resulting from damage done to a ship or cargo in consequence of water penetration into the holds through hatches opened for jettisoning cargo or appurtenances of a ship or other openings in the ship for the above purpose;
2) losses resulting from damage done to a ship or cargo in extinguishing a fire on board, including damage by scuttling a burning ship;
3) losses caused to a ship or cargo by intentionally running aground or by refloating;
4) losses resulting from damage done to the engines or other machinery or boilers of a ship which is aground in endeavouring to refloat;
5) expenses arising out of the discharge of cargo, fuel or stores into lighters and back, also expenses for hiring lighters when the ship is aground;
6) expenses incurred as a result of damage to or loss of cargo, fuel, or stores in the act of handling on board, discharging, loading and stowing, when the cost of those operations is admitted as general average;
7) expenses incurred as a result of rescue operations in order to protect the ship, freight, and cargo from a peril;
8) loss of freight arising from loss of cargo when loss of cargo is made good in apportioning general average. In this case a deduction of expenses shall be made from the freight, which the carrier would have incurred to earn such freight, but has, in consequence of the jettison, not incurred.
Article 48. Extra expenses constituting or associated with general average
1. The following shall also constitute or be associated with general average:
1) expenses caused by the ship’s forced entry of a place of refuge or return to the port of departure in consequence of an accident or other extraordinary circumstances which rendered the ship’s forced entry or return to the port of departure necessary for the purposes of common safety;
2) expenses connected with the ship’s leaving, with its original cargo or part of it, the place of refuge or the ship’s port of departure if it was forced to return to the latter;
3) expenses of handling on board or discharging cargo, fuel, or store, whether at the port of call or refuge, if they were incurred for the common safety or for repairing damage caused to the ship by an accident or other extraordinary circumstances, if the repairs were necessary for the safe continuation of the voyage;
4) storage charges, reloading or stowing of cargo, fuel or stores which have been discharged in circumstances set out in point 3 of this paragraph. If the ship is recognised unfit for shipping or if the ship interrupted the voyage, expenses of storage incurred prior to the day of recognition of the ship as unfit for shipping or prior to the day of interruption of the voyage, or prior to the day of completion of the ship’s discharging, shall be associated with general average.
5) expenses for the crew’s wages, board and clothing, for fuel and stores incurred in connection with the prolongation of the voyage occasioned by the ship’s entering a place of refuge or returning to its place of loading in circumstances set out in points 1 and 3 of this paragraph. When the ship is recognised unfit for shipping or does not proceed on its original voyage, the above expenses shall be admitted as general average if they were incurred up to the date of the ship’s recognition as unfit for shipping or the abandonment of the voyage, or up to the date of completion of the discharge of the cargo;
6) expenses for the crew’s wages and maintenance incurred through the ship being detained in the interests of the common safety or in consequence of an accident or other extraordinary circumstances, or for the purpose of repairing the damage caused by such circumstances, if the repairs were necessary for the safe continuation of the voyage. The expenses for fuel, stores and port charges incurred during the extra period of detention shall be compensated by dividing general average, except those incurred by reason of repairs not allowable as general average;
7) expenses mentioned in points 1 to 6 of this paragraph caused by the necessity for the ship to be removed from the place of refuge to another place because repairs could not be carried out at the place of refuge, also expenses of such a removal, including expenses of towage and temporary repairs;
8) expenses of temporary repairs effected to a ship at the place of loading, call or refuge for the common safety, also expenses of temporary repairs of damage admitted as general average. Temporary repairs of accidental damage to enable the ship to complete the voyage shall be compensated as much as they helped to avoid expenses that would have been associated with general average if such repairs had not been effected;
9) all extraordinary expenses incurred in place of other expenses which would have been associated with general average. They shall be compensated as much as they helped to avoid expenses without regard to the saving of such alternative expenses by other participants of the general average.
2. Losses not constituting general average shall be considered as particular average. Such losses shall not be apportioned among ship, cargo and freight. They shall be borne by the person who suffered them or who is responsible for causing them.
Article 49. Losses and expenses not constituting general average
1. The following shall not be considered as general average even in the presence of characteristics referred to in the definition of general average in Article 2 of this Law:
1) the value of cargo jettisoned on catching fire owing to spontaneous combustion or of cargo carried not in accordance with the stipulations of this Law or the customs of merchant shipping;
2) losses owing to the smoke and heat effect during a fire;
3) losses caused by cutting away the wreck or remains of spars or of other things which have previously been pulled down or lost owing to a sea-peril;
4) expenses of handling on board or discharging cargo, fuel or stores at a place of loading, call or refuge, when damage caused to the ship was established at a place of loading or call, if no sea-perils or extraordinary events connected with such a damage to the ship occurred during the trip; also when such expenses were incurred due to the reloading of cargo which has been displaced during the voyage if such reloading was not necessary for the common safety;
5) expenses for the crew’s wages, fuel and stores incurred during repairing the damaged ship if the repairs were necessary for the safe prosecution of the voyage and the damage was established at the place of loading or call, and if no accident or extraordinary circumstances occurred during the ship’s voyage connected with such a damage of the ship;
6) any damage or loss sustained by the ship or cargo through delay on the voyage;
7) special compensation that the owner of a ship must pay the salvor under Article 14 of 1989 International Convention on Salvage.
2. Losses caused by damage or perishing of things loaded without the knowledge of the owner of a ship or his agent, also by damage or perishing of goods which have been intentionally misdescribed at the time of shipment shall not be considered as general average. However, the owner of such property shall remain liable to contribute if the property was saved. Owners whose goods have been declared on shipment at a value which is lower than their real value shall contribute upon their actual value but their losses shall be compensated only at the declared value.
Article 50. Calculation of the amount allowable as general average for loss and expenses
1. The loss allowable as general average for damage caused to the ship, its machinery or appurtenances shall be:
1) the cost of repairing the damage and replacing the parts of the ship;
2) in other cases - the depreciation in the value of the ship due to the above damage is taken into account, not exceeding, however, the normal cost of repairing.
2. Where old material or parts have been replaced by new in a ship not older than 15 years, a deduction of one-third of the cost of repairing of the ship allowable as general average shall be made as new for old. Where there is an actual or constructive total loss of the ship, the amount to be allowed as general average for damage caused to the ship shall be the estimated sound value of the ship after deducting the normal cost of repairing damage if it is not general average and the proceeds of the sale of the ship, if any.
3. The amount to be made good as general average for losses due to the damage or loss of goods sacrificed shall be adjusted on the basis of the value of cargo at the time of discharge indicated in the account presented by the consignee; where no such account was presented, the amount shall be adjusted on the basis of the value of cargo at the place and day of loading. The value of goods at the time of their discharge shall include the cost of the cargo insurance and freight. Where cargo so damaged is sold, the amount to be made good in general average shall be the difference between the sound value of the cargo and the proceeds of their sale.
4. The payment of 2 per cent on general average disbursements (other than the wages and maintenance of the crew, also the fuel and stores not replaced during the voyage) shall be allowed in general average, to be paid to the party to the contract of carriage of goods by sea who has made such disbursements.
5. Interest shall be allowed at the rate of 7 per cent per annum on the amount of expenditure and other allowances charged to general average, to accrue from the day on which such expenditure was incurred until the date of the final average statement.
6. The total value of any property contributing towards the settling of a general average shall be the actual value of the property at the termination of the voyage, with the exception of the contributions for cargo whose value shall be established in accordance with the account presented by the consignee. Where no such account is presented, the value shall be adjusted on the basis of the value of cargo at the place and day of loading. The value of the cargo shall include its insurance and freight after deducting damages and losses incurred prior to the unloading of the ship.
Article 51. Claims adjustment and claims adjuster
1. The existence of general average and a computation of its apportionment (the average statement) shall be prepared upon application of interested persons by the average adjusters, possessing knowledge and experience in the field of maritime law.
2. The onus of proof is upon the party to the contract of carriage of cargo by sea, claiming in average statement to show that the loss or expenses claimed is properly allowable as general average.
3. The general adjuster shall have the right to advise the interested persons to submit documents necessary for preparing an average statement. If the interested parties fail to submit the necessary documents within the time limits set by the general adjuster, an average statement shall be prepared in accordance with the materials available to the general adjuster. The average statement may not be revised at the request of the interested persons in accordance with the documents requested by the general adjuster but not submitted by them.
4. All interested persons must be provided a possibility to inspect all the materials used in the preparation of an average statement, and the average adjuster must, at the request of the interested persons, give them, at their expense, certified copies of such materials.
5. A fee shall be charged for the preparation of the average statement, which shall be included in the average statement and apportioned among all the interested persons in proportion to their general average contributions.
Article 52. Hearing of disputes relating to the average statement
1. Any mistakes in the average statement ascertained after the registration of the average statement in the average statement register shall be rectified by the general adjuster either at his own or the interested persons’ initiative. The rectification of the ascertained mistakes shall be recorded in the appendix of the average statement drawn up by the average adjuster and shall be registered in the same manner as average statements.
2. The interested persons may dispute the average statement in court within six months of receiving the average statement. In this case, a copy of the statement of claim shall be sent to the average adjuster.
3. The average adjuster must be present in person during the hearing of the dispute relating to the average statement and must provide explanations if so requested by the court hearing the dispute.
4. If the average statement is not disputed or if it is disputed but left in force by the court, recovery thereunder may be effected by a notarial executive inscription. The average statement must be presented to the notarial office along with a certificate of the average adjuster to the effect that the average statement has not been annulled or modified by the court.
CHAPTER NINE
SALVAGE OPERATIONS AT SEA, COLLISION OF SHIPS,
COMPENSATION FOR LOSSES INCURRED IN
AVOIDING DAMAGE OF A SUBMARINE CABLE OR PIPELINE
Article 53. Repealed as of 1 October 2000.
Article 54. Repealed as of 1 October 2000.
Article 55. Salvage operations at sea
Salvage operations at sea shall be guided in accordance with the provisions of 1989 International Convention on Salvage.
Article 56. Repealed as of 1 October 2000.
Article 57. Compensation for losses from collisions of ships
1. This Law shall establish the procedure for compensation of losses sustained:
1) in a collision between sea-going ships;
2) in a collision between sea-going ships and inland waterways vessels;
3) by persons, cargo or other property;
4) through the non-observance of the rules of safe navigation, though a collision was averted.
2. Losses shall be compensated by the manager of the ship through the fault of the master of a ship or other members of the crew whereof the collision occurred. None of the parties in collision shall be held liable until proved guilty in the manner prescribed by law.
3. If the collision was caused by force majeure, or if it is impossible to establish the cause of the collision, the losses shall be borne by those who have suffered them.
4. If the collision was caused through the fault of the masters of ships or other members of the crew of all the ships in collision, the liability of each party shall be established in proportion to the degree of their fault. If it is not possible to establish the degree of fault of each respective party, the liability shall be apportioned on an equal basis.
5. In the case referred to in paragraph 4 of this Article, the managers of the ships shall have a joint and several liability to third parties for losses caused by death or injuries to the health of people.
6. The manager of the ship shall also be held liable if the collision was caused through the fault of a pilot.
7. Losses sustained through pollution of the environment during a collision shall be compensated in the manner established by laws of the Republic of Lithuania.
Article 57(1). Compensation for losses incurred in avoiding damage of a submarine cable or pipeline
1. The owner of a submarine cable or pipeline must compensate for the losses incurred by owners of ships which prove that they have suffered damages (lost an anchor, fishing net or other fishing equipment) in avoiding a submarine cable or pipeline damage.
2. The obligation specified in paragraph 1 of this Article to compensate the losses occurs only if the owners of the ship have taken all reasonable measures to avoid losses.
CHAPTER TEN
LIMITATION OF THE LIABILITY OF THE MANAGER AND RESCUER OF A SHIP AND SECURITY FOR DISCHARGE OF OBLIGATIONS OF THE MANAGER OF A SHIP
Article 58. Limitation of the liability of the manager and rescuer of a ship
1. The liability of the manager and rescuer of the ship in relation to the claims brought may be limited in accordance with the procedure specified in the International Convention on Limitation of Liability for Maritime Claims of 1976, and the Protocol of 1996 amending the International Convention on Limitation of Liability for Maritime Claims of 1976 (hereinafter: the ‘Convention on Limitation of Liability for Maritime Claims’) and other international treaties of the Republic of Lithuania.
2. A person whose actions, omission or default to carry out the obligations is the responsibility of the manager or rescuer of a ship shall be entitled to exercise the right to limit the liability in accordance with the Convention on Limitation of Liability for Maritime Claims and other international treaties of the Republic of Lithuania.
Article 581. Security for discharge of obligations of the manager of a ship
1. The discharge of obligations of the manager of the ship flying the Lithuanian flag or the foreign ship entering the ports of the Republic of Lithuania who shall be applied limitation of a liability in accordance with the Convention on Limitation of Liability for Maritime Claims must be secured by effective measures of securing the discharge of obligations (insurance, guarantee or other means). The amount of security of the discharge of obligations of the manager of the ship for one event of each ship must be not less than the corresponding maximum amount by which the liability is limited in accordance with the Convention on Limitation of Liability for Maritime Claims.
2. The presence of the security of the discharge of obligations specified in paragraph 1 of this Article shall be confirmed by the relevant document issued by the entity that issued the security of the discharge of obligations (an insurance and mutual business entity, members of the International Group of Protection & Indemnity Clubs, the bank or other entity that is entitled to a business of securing the discharge of obligations (hereinafter: 'document proving the security of the discharge of obligations). The document certifying the securing of the discharge of obligations must be kept on board the ship. If the document certifying the securing of the discharge of obligations has been concluded in other language than English, French or Spanish, it must be accompanied by the translation into one of these languages. The document certifying the securing of the discharge of obligations must contain the following information at least:
1) the name of a ship, ship identification number given by the International Maritime Organization and port of registry;
2) full name of the manager, or the name and principal place of business;
3) type of the security for the discharge of obligations and its validity;
4) the name of the entity which issued the security for the discharge of obligations and the principal place of business, and, where appropriate, the place of business where the security for the discharge of obligations was issued.
3. Provisions of paragraphs 1 and 2 of this Article shall not apply to ships with a gross tonnage of less than 300, as well as warships, naval auxiliary or other ships belonging to the state by the right of ownership or used by the state on any other legal grounds for provision of non-commercial public services.
4. The Transport Safety Administration and companies managing seaports of the Republic of Lithuania shall oversee that the managers of ships comply with the provisions of paragraphs 1 and 2 of this Article.
Article 59. Repealed as of 1 July 2005.
Article 60. Repealed as of 1 July 2005.
Article 61. Repealed as of 1 July 2005.
CHAPTER ELEVEN
PRIVILEGED CLAIMS
Article 62. Sequence of Satisfying Privileged Claims
1. Privileged claims are claims related to merchant shipping satisfied in the manner prescribed by this Law.
2. Claims secured by mortgage must have the first priority of satisfaction. Other claims shall be satisfied in the following sequence:
1) claims of the staff of the manager of a ship in respect of labour relations, claims for compensation for mutilation or other injury to health, also for loss of life and claims for damage resulting from death or injury of a passenger;
2) claims relating to port dues;
3) claims for salvage remuneration and general average contributions;
4) claims for compensation of losses arising from collision or other accident at sea, damage to port works and other property and aids to navigation;
5) claims arising from the acts of the master of the ship, by virtue of the powers conferred on him by this Law, for the preservation of the ship and the continuation of the voyage;
6) claims in respect of loss or damage to cargo or luggage;
7) claims in respect of payment for freight and other charges due for the carriage of goods by sea.
3. Claims in respect of the payment for services rendered in port shall be considered as the sixth and seventh priority claims respectively, depending on the property out of which they are satisfied.
4. Claims mentioned in paragraph 1 shall be satisfied in proportion to the amounts of general claims.
5. Claims in respect of the last voyage shall be satisfied in preference to similar claims in respect of earlier voyages. Claims referred to in point 1 of paragraph 2 of this Article, in respect of several voyages of the ship shall rank with similar claims in respect of the last voyage of the ship.
Article 63. Property and funds used for satisfaction of privileged claims
1. Claims referred to in points 1 to 6 of paragraph 2 of Article 62 of this Law must have priority of satisfaction out of:
1) the value of the ship;
2) freight and payment for carriage of passengers and their luggage due for the voyage in the course of which the ground for the claim arose;
3) general average contributions payable to the manager of the ship in respect of the ship in question;
4) remuneration due to the manager of the ship for loss of freight, also for unrepaired damage caused to the ship;
5) remuneration due to the manager of the ship for salvage before the end of the voyage minus amounts due from the manager of a ship to the members of the crew and other persons who took part in the salvage.
2. Claims referred to in points 2, 3, 5, and 7 of paragraph 2 of Article 62 of this Law must have priority of satisfaction out of:
1) the value of the cargo not delivered to the consignee;
2) the compensation payable for damaged cargo;
3) general average contributions payable to the cargo owner.
Article 64. Period of limitation of privileged claims
1. The right to satisfaction of privileged claims shall terminate upon expiration of one year from the day on which the privileged claim arose.
2. The right of satisfaction of privileged claims referred to in point 5 of paragraph 2 of Article 62 of this Law shall terminate upon expiration of six months from the day on which the claim arose.
CHAPTER TWELVE
SEA PROTESTS
Article 65. A Note of a sea protest
1. If while the ship is sailing or is moored an event occurs which may form the basis for making property claims to the manager of a ship, the master of a ship shall, in order to secure evidence for the protection of the rights and legal interests of the manager of a ship, see to it that a note of a sea protest is drawn up in accordance with the established procedure.
2. A note of a sea protest shall contain a description of the circumstances of the event and of the measures taken by the master of a ship to preserve the property entrusted to him.
Article 66. Declaration of a sea protest
1. A declaration of a sea protest shall be made:
1) in a port of Lithuania - to a notary or other official entitled to perform notarial acts by the law of the Republic of Lithuania;
2) in a port of a foreign state - to the consul of the Republic of Lithuania or a competent official of a foreign state in accordance with the procedure prescribed by the laws of that state.
2. In a port of the Republic of Lithuania a declaration of a sea protest shall be made within twenty-four hours upon arrival at the port. If the event necessitating declaration of a sea protest happened at a port, the declaration of a sea protest must be submitted within twenty-four hours after the happening of the event.
3. If it proved impossible to make a declaration of a sea protest within the established time limit, the reasons thereof must be specified in the sea protest.
4. If there are grounds to suppose that the event which happened caused damage to the cargo on board, the declaration of a sea protest must be made before the opening of the holds. The cargo may be unloaded before declaring a sea protest only if this is necessitated by the properties of the cargo.
Article 67. Submission of an extract from the ship’s log
In evidence of the circumstances described in the declaration of a sea protest the master of a ship must submit to the notary or other competent official to whom he made a declaration of a sea protest an extract from the ship’s log certified by the master of a ship and request him to question the witnesses mentioned by the master of a ship to ascertain the circumstances referred to in the extract of the ship’s log.
Article 68. Drawing up a sea protest note
On the basis of the declaration of the master of a ship, the data in the extract from the ship’s log, also the examination of the witnesses, the notary or other competent official shall draw up a sea protest note and shall attest it with his signature and the seal. The competent official shall stamp the sea protest note only in cases where the obligation to have the stamp is provided for in the incorporation documents regulating activities of this official or by law.
CHAPTER THIRTEEN
CLAIMS AND ACTIONS
Article 69. Repealed as of 2 June 2004.
Article 70. Claims
1. Before bringing an action arising out of contracts of carriage by sea, filing of a claim shall be mandatory.
2. Repealed as of 2 June 2004
3. Repealed as of 2 June 2004
4. The claim must be filed in writing. Documents supporting the claim shall be attached thereto. In addition to the documents evidencing the right to file a claim, a document certifying the quantity and the value of the goods shipped must be attached to a claim for loss of, shortage in, or damage to the goods.
5. The procedure for filing and hearing claims arising out of a contract of passenger transport by sea shall be prescribed by the Rules of Passenger and Luggage Transport by Sea.
Article 71. Repealed as of 2 June 2004.
Article 72. Repealed as of 2 June 2004.
Article 73. Repealed as of 2 June 2004.
Article 74. Repealed as of 2 June 2004.
Article 75. Time limits to present actions and claims
1. Limitation periods prescribed in paragraphs 6 and 7 of this Article shall apply to claims arising out of cargo or luggage and passenger transport on an international voyage.
2. Claims to a carrier in respect of the transport referred to in paragraph 1 shall be filed within the first six months of the period of limitation of action.
3. Claims regarding freight shall be brought before transferring the cargo or during the cargo transfer. In cases of insignificant shortage or damage of cargo, claims shall be submitted in three days.
4. Claims in respect of the payment of dispatch money or demurrage shall be filed within the first 45 days of the period of limitation of action.
5. The carrier must consider any claim within three months from the day on which the claim was received and must notify the claimant of its being satisfied or rejected. Claims regarding dispatch money or demurrage charge or penalty payment for a ship failure or late submission arising out of transport by cabotage must be examined within 45 days.
6. In respect of claims referred to in this paragraph a period of one year of limitation shall apply. This period shall be calculated as follows:
1) claims arising out of carriage of cargo or luggage by sea, also claims for payment of dispatch money or demurrage, from the day of delivery of cargo or luggage, and in case of non-delivery of cargo or luggage - from the day when the delivery had to be effected;
2) claims arising out of chartering for a certain period of time, out of ship leasing contracts with an option to purchase and contracts of towage at sea, out of transactions concluded by the master of a ship and the use of piloting services, from the day when the right to a claim accrued.
7. In respect of claims referred to in this paragraph a period of two years of limitation shall apply. This period shall be calculated as follows:
with respect to the carriage of passengers, from the day when the passenger disembarked or should have disembarked; in the case of an action for damages arising out of personal injury to a passenger or loss of life, from the day of personal injury or death, provided that this period shall not exceed two years from the day of disembarkation;
2) in the case of claims for damages arising out of collision of ships, from the day of the collision;
3) in the case of claims for salvage award, from the day of completion of salvage services.
8. A one-year limitation period for claims arising from the carriage of goods by sea specified in paragraph 6 of this Article may be extended upon the agreement between the parties if the parties agree so after the cause of action arose.
9. A general period of limitation for claims prescribed by the Civil Code of the Republic of Lithuania shall apply to the claims which are not covered by the period of limitation laid down in this Law.
Article 76. Suspension, interruption and renewal of limitation periods
1. The rules established by the Civil Code of the Republic of Lithuania concerning the suspension, interruption or renewal of the period of limitation shall apply to the period of limitation of action set out by this Law.
2. Where the calculation of the amount involved in the action depends on the average statement, the period of limitation of action shall be suspended as from the day on which the average adjuster adopts a resolution ascertaining the existence of general average until the day on which the person concerned receives the average statement.
Article 77. Repealed as of 23 July 2003.
CHAPTER FOURTEEN
SHIP MORTGAGE
Article 78. Procedure of a mortgage of a ship
1. Ships registered in the Register of Seagoing Ships of the Republic of Lithuania shall be pledged in accordance with the procedure established by the Civil Code of the Republic of Lithuania, the Code of Civil Procedure of the Republic of Lithuania and this Law.
2. If this Law contains different provisions than the Civil Code of the Republic of Lithuania and the Code of Civil Procedure of the Republic of Lithuania, the provisions of this Law shall prevail.
Article 79. Ship mortgage
1. The ship shall be pledged with all ship equipment and appurtenances, which are necessary for navigation or travel and are on board at the moment of concluding a mortgage transaction or on the day of establishing a forced mortgage. Equipment and appurtenances of the pledged ship must be specified in the mortgage transaction or the decision on the establishment of forced mortgage, except those that are not the property of the owner of a ship.
2. The ship mortgage does not include on board fuel, oil and cargo belonging to the owner of a ship or another person.
3. Mortgage transaction or the decision on the establishment of a forced mortgage may not specify the place of the ship's presence at the moment of mortgage establishment.
Article 80. Establishment of forced mortgage of a ship
The application to establish, modify or terminate the forced mortgage of a ship when such mortgage is established by a court decision shall be submitted to the District Court of Klaipėda City.
Article 81. Deregistration of a pledged ship
1. The pledged ship may not be deregistered from the Register of Seagoing Ships of the Republic of Lithuania prior the termination of the ship mortgage or until the notarial consent of all mortgage creditors to do so is submitted.
2. If, under the rules of registration of ships, the pledged ship must be deregistered from the Register of Seagoing Ships of the Republic of Lithuania under other circumstances than the sale, this must be communicated to all the mortgage creditors specified in the Mortgage Register so that they would have time to take action to protect their interests. In the case referred to in this paragraph, the pledged ship may not be deregistered earlier than three months after the notice to the mortgage creditors. This requirement may be waived if the notarial consent of all mortgage creditors to do so before the term is submitted.
Article 82. Temporary change of a flag
1. The permission to temporary fly a flag of a foreign state for a ship registered in the Register of Seagoing Ships of the Republic of Lithuania may not be issued until the termination of all mortgages. This requirement may be waived if the notarial consent of all mortgage creditors to grant such permission is submitted.
2. The ship with a permanent registration in a foreign country which is issued the right to temporarily fly the Lithuanian flag may not be mortgaged in the Republic of Lithuania. All the issues related to the mortgage of such a ship shall be addressed in accordance with the laws of the state of the ship's permanent registration.
Article 83. Forced sale of the pledged ship
1. The decision regarding a forced sale of a ship pledged in the Republic of Lithuania shall be adopted in accordance with the procedure laid down in the Code of Civil Procedure of the Republic of Lithuania.
2. Forced sale of the pledged ship shall make it free from all mortgages or encumbrances only if the pledged ship was present on the territory of the Republic of Lithuania at the moment of its sale.
CHAPTER FIFTEEN
EMPLOYMENT RELATIONS ON BOARD AND GUARANTEES TO SEAFARERS
Article 84. Concluding an employment agreement with a seafarer and informing about work conditions
1. An employment agreement with a seafarer, except the master of a ship who is the manager of the ship, shall be concluded in accordance with the procedure laid down by laws of the Republic of Lithuania in a specified written form approved by the Government of the Republic of Lithuania. One copy of the employment agreement shall be provided to the seafarer (except a fisherman), another shall be kept by the manager of the ship. A copy of the employment agreement shall be provided to the master of a ship, however, if the employment agreement is concluded with a fisherman, a copy of the employment agreement shall be provided to the fisherman, while the original employment agreement shall be kept by the master of the ship and is carried on board the ship. Each seafarer shall be issued a seafarer’s certificate in the manner established by the Minister of Transport and Communications.
2. The manager of the ship may authorise the master of the ship to conclude employment agreements with seafarers in the name of the manager of the ship.
3. Persons under the age of sixteen years shall not be employed in a ship. A person found fit to be employed in that capacity in the manner prescribed by the Ministry of Health of the Republic of Lithuania shall be allowed to be employed in a ship.
4. Prior to entering into an employment agreement, the manager of a ship must create conditions for a seafarer to examine its provisions, to introduce a seafarer with his future working conditions, rights and obligations (making it possible also for the competent authorities to familiarise themselves with this information, including the employment agreement), procedure of the receipt and processing of complaints concerning possible violations of maritime labour requirements specified in the international treaties of the Republic of Lithuania and legal acts of the Republic of Lithuania.
5. If the manager of a ship entering into an employment agreement with seafarers (except fishermen), uses the services of undertakings engaged in the intermediation for recruitment of seafarers in foreign states that have not ratified the Maritime Labour Convention, 2006, he must ensure that the undertaking complies with the requirements established for such businesses in this Convention.
Article 85. Ensuring adequate working and rest conditions for seafarers during the voyage
1. The manager of a ship must see to it that seafarers have adequate working and rest conditions.
2. The master of the ship shall see to it that seafarers are provided food and drinking water provisions in accordance with the daily allowance prescribed by the Ministry of Health. Where the master of a ship reduces the quantity of provisions during the voyage, the seafarers shall be entitled to request a pecuniary compensation for the reduction of provisions.
Article 86. Rights and duties of seafarers during the voyage
1. The rights and duties of seafarers during the voyage shall be provided for by this Law, by other legal acts of the Republic of Lithuania, by the Regulations of Service on Ships of the Republic of Lithuania approved by the Ministry of Transport and Communications, the employment agreement and job descriptions.
2. A seafarer shall be entitled to work and rest. Specific features of work and rest periods in the maritime transport shall be established by the Government.
3. Where the ship is berthed in a port or other safe place (with the anchor dropped), during his free period a seafarer has the right to go ashore if he is not required to stay on board for reasons of security of the ship, cargo or people on board when the ship is about to sail from a port or to change its berth. Where possible with regard to the expenses and other related circumstances, the master of a ship may arrange for the seafarers a free commuting by boat with the shore.
4. A seafarer may carry on board as many of his personal things as would not encumber the ship and would not become a cause of possible disorder on board. A seafarer shall not be allowed to carry goods on board without the prior permission of the master. It shall not be permitted to carry on board radioactive, toxic, controlled or narcotic substances. No firearms or ammunition shall be permitted into the ship without the prior permission of the master of a ship.
5. If the master of a ship suspects that some things have been brought on board illegally, he may inspect the seafarer’s berthing space or other ship space. The seafarer concerned has the right to be present during the inspection.
6. All things illegally brought on board may be arrested, discharged or, where necessary, destroyed by the master of a ship.
7. If owing to an accident at sea all the effects of a seafarer that have been legally brought on board the ship perish, the manager of the ship must compensate to the seafarer for the loss in accordance with the prices of goods of equivalent type and quality allowing for the wear and tear of the lost or damaged property. The seafarers shall not be entitled to any compensation for the property if the accident at sea occurs through their fault.
8. The property of a discharged seafarer left on board the ship shall be stored at the seafarer’s expense. The master of the ship must at his earliest convenience organise taking inventory of the seafarer’s property. The accuracy of the inventory shall be attested by two witnesses.
9. If the seafarer’s property cannot be stored adequately owing to its properties, high costs of storage or other circumstances, the property may be sold or destroyed. The property may also be sold or destroyed if the seafarer has not contacted the manager of the ship during the period of 12 months concerning the recovery of property belonging to him.
10. If the property belonging to the seafarer was damaged on board the ship or was lost during a burglary, fire or other damage caused to the ship, the manager of the ship must make the payment of compensation to the seafarer.
Article 87. Order on board a ship
1. The master of a ship shall be in charge to maintain order on board that ship.
2. A seafarer must obey the orders given on board a ship and observe the regulations of seafarers’ duties and work.
3. If a seafarer is prevented from arriving on board a ship on time he shall, without delay, inform the master of a ship about it.
4. In the event of peril or a mutiny of the crew, also of other specific cases, the ship master may resort to all necessary and legal means to maintain order on board the ship. Every member of the crew must help to maintain order on the ship without a special command.
Article 88. Guarantees for seafarers
1. If the contract with a seafarer ends or a seafarer cannot longer carry out his duties under the employment agreement, or there is no guarantee that, under special circumstances, he will be able to fulfil these obligations, the manager of a ship shall organize the repatriation of the seafarer and pay the costs associated with the journey of the seafarer to the place of permanent residence. If a foreign country, where the ship is present and where the employment agreement with the seafarer terminates or the seafarer cannot longer carry out his duties under the employment agreement or there is no guarantee that, under special circumstances, he will be able to fulfil these obligations, refuses to grant him entry into the country or grants him entry for a deposit which the manager of a ship is not in a position to make, the seafarer shall continue his work on board a ship until the ship reaches a port where the seafarer may be disembarked.
2. When it is established that a seafarer has a disease posing danger for other persons on board a ship, the master of the ship shall, if it is impossible to prevent the danger on board, disembark the sick seafarer at the nearest port of call.
3. When a sick or injured seafarer is left in a foreign country, the master of a ship shall ensure a proper care and nursing for the seafarer and notify about that the nearest diplomatic mission or consular post of the Republic of Lithuania. At the seafarer’s request, the master of the ship shall convey a message from the seafarer to a person indicated by him.
4. If, during the voyage, the seafarer fell sick, was injured, died or got killed during the voyage, the master of a ship shall pay all the expenses for the seafarers' treatment, care, nursing by the date on which the seafarer is considered duly repatriated and transportation of the remains.
5. It shall be prohibited for managers of ships to require that seafarers make an advance payment of repatriation expenses at the beginning of their employment, also, it shall be prohibited to deduct costs of repatriation from the seafarers' wages or other benefits due to them, except in cases where, in accordance with laws and other legal acts or collective agreements, it was established that the seafarer grossly violated the seafarer's duties.
6. If the master of a ship fails to take care of the repatriation of the seafarers who are entitled to it, the Ministry of Foreign Affairs shall carry out repatriation of such seafarers and, therefore, recover the costs incurred from the manager of a ship.
7. The manager of a ship flying the Lithuanian flag must have the security of the discharge of valid obligations related to proper repatriation of the seafarers as well as other commitments of the manager of the ship regarding the requirements provided for in international treaties of the Republic of Lithuania regulating maritime labour of seafarers, where such security is issued an insurance or mutual business entity, members of the International Group of Protection & Indemnity Clubs, the bank or other entity that is entitled to a business of securing the discharge of obligations, or must be covered by insurance.
8. The term after which a seafarer is entitled to repatriation cannot be longer than 12 months from the start of the seafarer's journey. Specific periods at the end of which seafarers acquire the right to repatriation shall be specified in the employment agreements and collective agreements.
9. The manager of the ship must not cover the costs referred to in this Article if the seafarer has the sickness or injury insurance policy from an insurance company and this company covers the costs.
Article 89. Transfer of the salary of seafarers to other persons
1. The manager of a ship shall ensure that a seafarer could transfer all his wages or a part of it to his family, dependants or legitimate beneficiaries by a bank transfer or similar means, or upon a request of a seafarer, part or all of his wages are transferred directly to the persons indicated by the seafarer at the agreed time.
2. The service specified in paragraph 1 of this Article must be rendered at no cost, and the exchange rate, unless otherwise agreed by the parties, must be the market rate or the official exchange rate. The exchange rate must not be unfavourable for seafarers.
Article 90. Receipt and processing of complaints concerning possible violations of maritime labour requirements specified in the international treaties of the Republic of Lithuania and legal acts of the Republic of Lithuania
1. The complaint concerning possible violations of the maritime labour requirements specified in the international treaties of the Republic of Lithuania and legal acts of the Republic of Lithuania shall be understood in this Article as an appeal of a seafarer or any other entity where it is indicated that the seafarers' rights or legitimate interests in relation to the ship, seafarers' safety and adequate working and rest conditions on board have been violated and where a request to defend those interests is expressed.
2. The procedure for examination and processing of complaints concerning possible violations of the maritime labour requirements imposed by the international treaties of the Republic of Lithuania and legal acts of the Republic of Lithuania shall be established by the Minister of Transport and Communications, the Minister of Social Security and Labour and the Minister of Health in accordance with international treaties of the Republic of Lithuania and the legal acts of the Republic of Lithuania.
Article 91. Obligations of the manager of a ship in ensuring implementation of the requirements for maritime labour
1. The manager of a ship must ensure implementation of requirements for maritime labour set out in the international treaties and legal acts of the Republic of Lithuania on board a ship.
2. In case the manager of a ship responsible for ensuring implementation of requirements for maritime labour set out in international treaties and legal acts of the Republic of Lithuania and the owner of a ship is not the same person, then the owner of the ship must provide to the Transport Safety Administration the name and particulars of the manager.
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS
Annex to
Republic of Lithuania
Law No I-1513 of
12 September 1996
Legal Acts of the European Union Implemented by this Law
1. Council Regulation (EEC) No 4055/86 of 22 December 1986 applying the principle of freedom to provide services to maritime transport between Member States and between Member States and third countries (OJ 2004 Special Edition, Chapter 6, Volume 1, p. 174).
2. Council Regulation (EEC) No 3577/92 of 7 December 1992 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage) (OJ 2004 Special Edition, Chapter 6, Volume 2, p. 10).
3. Council Directive 1999/63/EC of 21 June 1999 concerning the Agreement on the organisation of working time of seafarers concluded by the European Community Shipowners' Association (ECSA) and the Federation of Transport Workers' Unions in the European Union (FST) (OJ 2004 Special Edition, Chapter 5 Volume 3, p. 363).
4. Council Directive 2009/13/EC of 16 February 2009 implementing the Agreement concluded by the European Community Shipowners’ Associations (ECSA) and the European Transport Workers’ Federation (ETF) on the Maritime Labour Convention, 2006, and amending Directive 1999/63/EC (OJ 2009 L 124, p. 30).
5. Directive 2009/20/EC of the European Parliament and of the Council of 23 April 2009 on the insurance of shipowners for maritime claims (OJ 2009 L 131, p. 128).
6. Regulation (EU) No 1177/2010 of the European Parliament and of the Council of 24 November 2010 concerning the rights of passengers when travelling by sea and inland waterway and amending Regulation (EC) No 2006/2004 (OJ 2010 L 334, p. 1).
7. Council Directive (EU) 2017/159 of 19 December 2016 implementing the Agreement concerning the implementation of the Work in Fishing Convention, 2007 of the International Labour Organisation, concluded on 21 May 2012 between the General Confederation of Agricultural Cooperatives in the European Union (Cogeca), the European Transport Workers' Federation (ETF) and the Association of National Organisations of Fishing Enterprises in the European Union (Europêche) (OJ 2017 L 25, p. 12).