MERCHANT SHIPPING CODE (TITLE AMEND. - SG 113/02)
In force from 01.01.1971
Prom. SG. 55/14 Jul 1970, prom. SG. 56/17 Jul 1970, corr. SG. 58/24 Jul 1970, amend. SG. 55/18 Jul 1975, amend. SG. 10/6 Feb 1987, amend. SG. 30/13 Apr 1990, amend. SG. 85/24 Jul 1998, suppl. SG. 12/11 Feb 2000, amend. SG. 41/24 Apr 2001, amend. SG. 113/3 Dec 2002, amend. SG. 55/25 Jun 2004, amend. SG. 42/17 May 2005, amend. SG. 77/27 Sep 2005, amend. SG. 87/1 Nov 2005, amend. SG. 94/25 Nov 2005, amend. SG. 104/27 Dec 2005, amend. SG. 30/11 Apr 2006, amend. SG. 62/1 Aug 2006, amend. SG. 108/29 Dec 2006, amend. SG. 36/4 Apr 2008, amend. SG. 71/12 Aug 2008, amend. SG. 98/14 Nov 2008, amend. SG. 12/13 Feb 2009, amend. SG. 32/28 Apr 2009, amend. SG. 85/29 Oct 2010
Chapter one.
BASIC PROVISIONS
Section I.
Subject-Matter and Scope of Application
Social Relations, Subject-Matter of the Code
Art. 1. (1) (amend. - SG 41/01; amend. - SG 113/02) This Code shall regulate the social relations in the Republic of Bulgaria, arising in relation to the merchant shipping and the control thereof, the requirements for the Bulgarian ownership in ships, the requirements for the ship's and carriage documents, the rights and duties of the masters and the crews, the contracts for carriage of cargoes, passengers and baggage, the real rights in the ships, the contracts for rental of ships, the contracts for insurance of ships and loads, the average of ships, the salvage on sea and rivers, and other relations connected to the shipping and its safety.
(2) (amend. - SG 41/01; amend. - SG 113/02) The norms of the Bulgarian legislation in force shall apply to the legal relations under Para 1 not regulated by this Code.

Independence in Negotiations
Art. 2. (amend. - SG 113/02) Except for the cases stipulated by the mandatory norms of this Code, the parties participating in relations connected to the merchant shipping may arrange their mutual rights and duties through a contract.

Scope of Shipping and Merchant Freedom
Art. 3. (1) (amend. - SG 113/02) The merchant shipping shall include the activities of carriage of passengers, baggage, cargoes and post by ships, rental, other dealings with ships, towing and pushing of ships and cargoes, search, salvage and helping people and ships suffering accidents, carrying on maritime and river services related to shipping, farm fishery, exploitation of maritime and river resources and other economic activities involving usage of ships.
(2) (amend. - SG 41/01; amend. - SG 113/02) The merchant shipping shall be carried on freely under conditions of protection and expansion of the competition and the free initiative in the economic activity.

Merchant Ships
Art. 4. (1) (amend. - SG 113/02) A merchant ship in the sense of this Code shall be any self-propelled or non-self-propelled vessel or vessel unit intended for sailing and for carrying out the activities referred to in Art. 3.
(2) (amend. - SG 113/02) The vessel units for raising of sunken property or for other economic activity shall be also treated as merchant ships.
(3) (amend. - SG 113/02; supple. - SG 85/10) The rules regarding the ships shall apply to the ships under construction after their launching, except for the provisions of Chapter Three, Section I, which shall apply from the moment of laying the keel.

Application to Special Types of Ships
Art. 5. (amend. - SG 113/02) (1) The provisions regarding the merchant ships, except the provisions on carriage of passengers and cargoes and on general averages, shall respectively apply also to the ships used for scientific, training, cultural and sport purposes, for pilotage, for exercising control and supervision, for fire fighting, communication, customs and sanitary purposes, for ice breaking, for rescuing human lives and property.
(2) The provisions shall not apply to war carriage of cargoes and passengers, even when it is carried out by merchant ships.
(3) The provisions shall apply also to military ships when used for merchant purposes.

Carriage of Passengers and Cargoes between Ports of the Republic of Bulgaria
Art. 6. (amend. - SG 113/02) (1) The carriage of passengers and cargoes, towing and pushing of ships related to usage of ships between the ports of the Republic of Bulgaria shall be carried out by ships flying the Bulgarian flag.
(2) Carriage and activities related to the hydro-technical and underwater technical works, catch of biological sea and river resources, research and extraction of mineral and other non-living resources, pilotage, bunkering, accepting wastes, water-and-oil mixtures and other activities performed by ships in the internal sea waters, the territorial sea and the inland waterways of the Republic of Bulgaria shall be carried out by ships flying the Bulgarian flag.
(3) (in force from 01.01.2007) The activities referred to in Para 1 and 2 may be carried out also by ships flying the flag of a Member State of the European Union, provided that they meet the normative requirements for coastwise (cabotage) sailing.
(4) The activities referred to in Para 1 and 2 may be carried out also by ships flying other flags, provided that an international treaty, to which the Republic of Bulgaria is a party, or a decision of the Council of Ministers for every single case stipulate that.
(5) (in force from 01.01.2007; amend. - SG 87/05; amend. - SG 85/10) In case of serious disturbances of the internal market caused by the liberalisation of the market, the Minister of Transport, Information Technologies and Communications may seize the competent authorities of the European Union to introduce exceptions to the rules under Para 3 and 4 for a term of 12 months.
(6) In case of carriage on inland waterways an obligation for rendering public services may be performed on the basis of a contract which shall have the purpose to achieve a certain level of the transport service and prices for a certain type of public services.
(7) (amend. - SG 87/05; amend. - SG 85/10) The obligation for rendering a public service referred to in Para 6 shall be assigned by a contract of at most 5 years of duration, concluded between the Minister of Transport, Information Technologies and Communications and the carrier on the basis of a decision of the Council of Ministers for public service assigning. The contract shall be updated annually.
(8) (amend. - SG 87/05) In the contract with the carrier referred to in Para 7 shall be determined the types of services and the order of their accounting, the regularity, the quality and the volume of the carriage, the prices and the special price relieves and the compensation mechanisms related to them.
(9) (amend. - SG 87/05; amend. - SG 85/10) The conditions and the order of carrying on the activities referred to in Para 1 shall be determined in ordinances of the Minister of Transport, Information Technologies and Communications.
(10) (new - SG 87/05) The conditions and the order of concluding public service contracts for carriage of passengers on inland waterways shall be determined in an ordinance of the Council of Ministers.

Carriage of Cargoes on Inland Waterways
Art. 6a. (new – SG 113/02) (1) The carriage of cargoes on inland waterways shall be carried out by licensed carriers meeting the requirements for professional competence, financial stability and good reputation.
(2) (amend. - SG 87/05; amend. - SG 85/10) The conditions and the order of establishing and certifying the requirements referred to in Para 1 shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications.
(3) (amend. - SG 87/05; amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications or a person authorized by him shall grant a license to carriers meeting the requirements referred to in Para 1.
(4) (amend. - SG 87/05; amend. - SG 30/06, in force from 12.07.2006) The refusal to grant a license shall be subject to appealing under the order of the Administrative Procedure Code.
(5) (new – SG 87/05) For granting a license for carriage of cargoes on inland waterways shall be collected fees in amount determined by the Council of Ministers.

"Inland Waterways" Fund
Art. 6b. (new – SG 113/02; amend. – SG 87/05, in force from 01.01.2007; amend. - SG 85/10) For financing the activities on regulation of the capacity of the inland waterway fleet an "Inland Waterways" Fund shall be established being a secondary administrator of budget credits at the Minister of Transport, Information Technologies and Communications.

Raising and Accounting the Funds of the "Inland Waterways" Fund
Art. 6c. (new – SG 87/05, in force from 01.01.2007) (1) (amend. - SG 85/10) The "Inland Waterways" Fund revenue shall be raised, accounted and consolidated into the system of the single budget account by using different transit accounts opened on behalf of the Ministry of Transport, Information Technologies and Communications in the Bulgarian National Bank.
(2) The revenue of the Fund shall be formed of payments by the shipowners who put vessels into operation and in respect of which the measures for regulation of the fleet capacity shall apply.
(3) The revenue of the Fund shall be submitted into three separate transit accounts depending on the type of the vessel:
1. for bulk ships;
2. for tankers;
3. for pusher ships.

Expenditure of Funds of the "Inland Waterways" Fund 
Art. 6d. (new – SG 87/05, in force from 01.01.2007) (1) From the budget of "Inland Waterways" Fund shall be made expenses for regulation of the capacity of the fleet on the inland waterways.
(2) (amend. - SG 85/10) The expenses referred to in Para 1 shall be planned annually into the budget of the Ministry of Transport, Information Technologies and Communications and shall be made through assigning a separate payment code in the system for electronic budget payments.
(3) The unused part of the funds submitted as referred to in Art. 6c, including funds from previous years, shall be inseparable part of the single account and shall be spent only in accordance to the provisions of this Code.
(4) The funds referred to in Para 3 shall be managed within the framework of control and management of the liquidity of the single account system.

Managing Board of the "Inland Waterways" Fund
Art. 6e. (new – SG 87/05, in force from 01.01.2007) (1) The "Inland Waterways" Fund shall be directed by a Managing Board consisting of five members, including a Chairperson.
(2) (amend. - SG 85/10) The Chairperson of the Managing Board of the Fund shall be the Minister of Transport, Information Technologies and Communications.
(3) Members of the Managing Board may not be persons convicted to crime of general character or being spouses or relatives of lineal kinship or collateral up to fourth degree inclusive and of affinity up to third degree inclusive to another member of the Managing Board of the Fund.

Composition of the Managing Board of the "Inland Waterways" Fund
Art. 6f. (new – SG 87/05, in force from 01.01.2007) (1) (amend. - SG 85/10) Members of the Managing Board of the "Inland Waterways" Fund shall be the Deputy Minister of Transport, Information Technologies and Communications, the Deputy Minister of Finance, the Deputy Minister of Economy and Energy and the Executive Director of the Executive Agency "Maritime Administration".
(2) The heads of the Ministries referred to in Para 1 shall determine their representatives in the Managing Board of the Fund.
(3) The Chairperson of the Managing Board shall issue an order which shall determine the nominal composition of the Managing Board.

Meetings of the Managing Board of the "Inland Waterways" Fund
Art. 6g. (new – SG 87/05, in force from 01.01.2007) (1) The Managing Board of the "Inland Waterways" Fund, when applying measures for regulation of the fleet capacity, shall sit at least once per quarter.
(2) The meetings of the Managing Board shall be valid if at least two-thirds of its members are present.
(3) The decisions of the Managing Board shall be adopted by open voting and simple majority of the total number of its members.
(4) The meetings of the Managing Board of the Fund may be attended by representatives of the organizations of the shipowners with the right to participate but without voting rights in the decision-making.

Competences of the Managing Board of the "Inland Waterways" Fund
Art. 6h. (new – SG 87/05, in force from 01.01.2007) (1) The Managing Board of the "Inland Waterways" Fund shall adopt measures for regulation of the fleet capacity and shall adopt a draft budget of the Fund.
(2) (amend. - SG 85/10) The draft budget of the Fund adopted by the Managing Board shall be included in the draft budget of the Ministry of Transport, Information Technologies and Communications and shall be proposed to the Ministry of Finance according to the order established by the law.

Measures for Regulation of the Fleet Capacity
Art. 6i. (new – SG 87/05, in force from 01.01.2007) (1) Measures for regulation of the fleet capacity shall be adopted in compliance with the provisions of the secondary legislation of the European Union in force.
(2) When the provisions of the secondary legislation of the European Union in force shall not apply directly, the Minister of Transport shall adopt ordinances on their implementation.
(3) The control of the implementation of the measures for regulation of the fleet capacity and the organizational and technical provision of the Fund activities shall be carried out by the Executive Agency "Maritime Administration".

Freedom of Association
Art. 6j. (new – SG 113/02; prev. text of art. 6c - 87/05, in force from 01.01.2007) Carriers of cargoes and passengers may associate freely in order to achieve common goals complying with the provisions of the Law for Protection of the Competition.

Competences of the Minister of Transport, Information Technologies and Communications (title amend. - SG 87/05; amend. - SG 85/10)
Art. 7. (new – SG 113/02; amend. – SG 87/05) (1) (amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall carry out the state policy in the field of merchant shipping and shall represent the Republic of Bulgaria in the international organizations in this field by:
1. carrying out the functions of administration pursuant to the international treaties, to which the Republic of Bulgaria is a party, and by proposing the accession of the country to international organizations and treaties;
2. determining the norms for preparation and the order of physical examination of the maritime persons and carrying out control of their observation;
3. determining the safety norms of merchant shipping, controlling the observation of the safety rules and organizing the shipping activities;
4. carrying out control for prevention and restriction of the pollution of the territorial sea, the internal sea waters and the inland waterways by ships;
5. establishing order and organization of search and salvage on sea or on inland waterways and of finding the sources of pollution of the environment;
6. establishing organization for collecting and providing information, management and control of the traffic of ships, together with the Minister of Defence.
(2) (amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall exercise his competences through the Executive Agency "Maritime Administration".

Coordinated Activities
Art. 7a. (new – SG 113/02, in force from 01.01.2007; amend. – SG 87/05; amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall undertake the necessary activities where the free access of a Bulgarian carrier to carriage of passengers and cargoes in non-member states of the European Union is restricted.

Terrains for Construction
Art. 8. (amend. - SG 41/01; amend. - SG 113/02; amend. - SG 87/05; amend. - SG 85/10) Designation of ground and water areas and carrying out construction at the seaside and in the internal waters and territorial sea and within the zones of activity of the navigation support facilities shall be carried out only after preliminary coordination with the Ministry of Defence and the Ministry of Transport, Information Technologies and Communications.

Section II.
Applicable Law
Liability of the Shipowner
Art. 9. (1) (amend. – SG 113/02) The grounds and the limits of the liability of the shipowner shall be regulated by the law of the country the flag of which is flown by the ship (law of the flag).
(2) (amend. - SG 41/01; amend. - SG 113/02) The Bulgarian legislation shall apply to damages and losses, arising of torts by ships in the internal sea waters, the territorial sea or the inland waterways of he Republic of Bulgaria.
(3) Shipowner in the sense of this Code shall be any person utilizing the ship on his own behalf regardless of whether he is the proprietor of the ship or uses her pursuant to other legal grounds.

Real Rights
Art. 10. (1) (amend. – SG 113/02; amend. - SG 85/10) The law of the primary register shall apply to the property right and the other real rights in ships, the acquisition, changing and disposition of such rights, as well as to the registration in the ship register.
(2) (amend. – SG 113/02) The form of the contract of transferring the property or arrangement of real rights in a ship shall be regulated by the law of the place where the contract is formed.

Priority Claims
Art. 11. (corr. - SG 58/70) The priorities of claims, set forth in this Code, shall be regulated according to the law of the country where the enforcement is held.

Crew
Art. 12. (corr. - SG 58/70) The legal status of the crew and the relations between the members of the crew and the shipowner, as well as those between the members of the crew, shall be regulated according to the law of the flag of the ship regardless of their nationality and the place where the relations have arisen.

Events and Actions on the Ship
Art. 13. (suppl. - SG 113/02) The relations arising of events or actions taking place on the ship or related to her, on the high sea or on a waterway, in which no country exercises sovereignty, shall be regulated by the law of the flag.

Collations of Ships
Art. 14. (1) (amend. – SG 41/01; amend. – SG 113/02) The relations on compensating the damages, arising of collisions of ships on the internal sea waters, the territorial sea and the inland waterways of the Republic of Bulgaria shall be regulated by the legislation of the country in force.
(2) If the collision occurs on high sea or a waterway, in which no country exercises sovereignty, the law of the country shall apply, before the court or the arbitration of which the dispute is considered.
(3) If all collided ships are flying the same flag, the law of the flag shall apply, regardless of where the collision occurred.

Salvage and Help
Art. 15. (1) (corr. - SG 58/70;amend. - SG 41/01; amend. - SG 113/02) The relations on rewarding a salvage, which took place in the internal waters or the territorial sea of the Republic of Bulgaria, shall be regulated according to the provisions of this Code.
(2) If the salvage took place on high sea or a waterway, in which no country exercises sovereignty, the law of the country shall apply, before the court or the arbitration of which the dispute is considered.
(3) If the salvage ship and the salved ship are flying the same flag, the law of the flag shall apply, regardless of where the salvage has taken place.
(4) The apportionment of the reward among the shipowner and the master and the rest of the crew members shall be regulated by the law of the flag of the salvage ship.

General Average
Art. 16. (1) In respect of allowance obligations, arising of a general average, shall apply the law of the country where the trip was terminated after the general average.
(2) If everybody affected by the general average have the same nationality, their common national law shall apply.

Sunken Property
Art. 17. (amend. - SG 41/01; amend. - SG 113/02) The relations regarding raising of sunken property within the sea areas and the inland waterways of the Republic of Bulgaria shall be regulated by the provisions of this Code, and on high sea – by the law of the flag of the salvage ship.

Sea Protests
Art. 18. The sea protests shall be made according to the law of the country, before the institutions or organizations of which they are stated.

Carriage of Cargoes
Art. 19. (1) In respect of contracts for carriage of cargoes the provisions of the law stipulated by the parties under the conditions of Art. 24 of this Code shall apply.
(2) Where no such stipulation is made, the provisions of this Code shall apply.

Rental of a Ship
Art. 20. The law of the flag of the ship shall apply to the contracts for ship rental.

Carriage of Passengers and Baggage
Art. 21. (amend. - 113/02; revoked – SG 42/05)

International Treaties
Art. 21a. (new – SG 41/01; amend. - SG 87/05; amend. - SG 85/10) When assignment of Bulgarian participants for carrying out activities of carriage of passengers and cargoes is required pursuant to an international treaty, to which the Republic of Bulgaria is a party, the choice shall be made by contest under conditions and order established in an ordinance of the Minister of Transport, Information Technologies and Communications.

Towage Contract 
Art. 22. In respect of the towage contract referred to in Chapter IX, Section II of this Code the law of the flag of the towing ship shall apply.

Conventions with Participation of the Republic of Bulgaria (title amend. - SG 41/01)
Art. 23. (amend. - SG 41/01) If an international treaty, to which the Republic of Bulgaria is a party, establishes rules different of those contained in this Code, the rules of the international treaty shall apply.

Choice of the Applicable Law by the Parties
Art. 24. (revoked – SG 42/05)

Choice of Court or Arbitration
Art. 25. (1) (amend. - 113/02) In case of dispute arising of relations connected with the merchant shipping, if one of the parties has its seat in another state or is a national of another state, the consideration of it by a court or arbitration in one of the both countries or in a third country may be stipulated upon agreement between the parties.
(2) If no such stipulation is made, the court of the country, where the seat of the shipowner is located, shall be the competent one.

Limits of Application of the Foreign Law
Art. 26. (amend. - SG 41/01; amend. - SG 113/02; revoked – SG 42/05)

Chapter two.
SHIPS (TITLE AMEND. - SG 113/02)
Section I.
Bulgarian Nationality of the Ships
Bulgarian Flag
Art. 27. (amend. - SG 41/01; amend. - SG 113/02; amend. – SG 55/04) (1) The flag of the Republic of Bulgaria shall be flown only by ships:
1.which are property of the state;
2. which are property of Bulgarian natural or legal persons;
3. more than the half of which is property of a Bulgarian natural or legal person;
4. which are property of natural or legal persons from a Member State of the European Union, provided that, for the performance of the technical, administrative and other requirements of the Bulgarian legislation regarding the ships, Bulgarian natural or legal persons or natural or legal persons from a Member State of the European Union resident in the Republic of Bulgaria have been authorized;
5. rented in a bareboat charter contract by the persons referred to in Items 1 – 4, for the term of effect of the contract.
(2) The natural and legal persons from a Member State of the European Union shall be granted a treatment not less favourable than that granted to the Bulgarian natural and legal persons regarding the registration of ships.

Bulgarian Ships
Art. 28. (amend. - SG 113/02) (1) Bulgarian shall be any ship which is:
1. property of the state;
2. property of a Bulgarian natural or legal person;
3. more than the half of which is property of a Bulgarian natural or legal person;
4. rented in a bareboat charter contract by the persons referred to in Items 1 – 3, for the term of effect of the contract.
(2) The rights in the ships referred to in Para 1, Item 4 may not differ from those included in the rental contract.

Right of Operation
Art. 29. (revoked – SG 30/90)

Identification of Ships
Art. 30. The ships shall be identified by the following data:
a) name or number;
b) nationality;
c) port of registration and
d) (amend. - SG 113/02) gross or net tonnage of the seagoing ships or displacement of the rivergoing ships.

Names of Ships
Art. 31. (amend. - SG 113/02) Every ship shall be given a name by her owner who should have made in advance a check of the exclusiveness of the name in the Executive Agency "Maritime Administration".

Call Signs of Ships
Art. 32. (1) (prev. text of art. 32 – SG 113/02) The name or the number of each Bulgarian ship shall be indicated on the bow of both of the decks and on the stern. In addition, the port where the ship is registered shall be also indicated on the stern under the name or the number.
(2) (new – SG 113/02; amend. - SG 87/05; amend. - SG 85/10) Signing of the farm fishing ships shall be carried out according to an order determined in an ordinance of the Minister of Transport, Information Technologies and Communications.

Section II.
Registry Books for Registration of Ships (title amend. - SG 113/02)
Registration
Art. 33. (1) (amend. - SG 41/01; amend. and suppl. - SG 113/02; amend. - SG 87/05) Each ship flying the Bulgarian flag shall be registered in the registry books of the ships in one of the Bulgarian ports. The registry books shall be kept by the regional units of the Executive Agency "Maritime Administration".
(2) (new – SG 113/02; amend. - SG 55/04) The conditions and order of re-registration of ships from a register of a Member State of the European Union to the Bulgarian register of the ships shall be determined in the ordinance referred to in Art. 45, Para 1.
(3) (prev. text of para 02 – SG 113/02) Any vessels, such as boats and others, being accessories to the ships, shall not be subject to registration.
(4) (prev. text of para 03 – SG 113/02) The shipowners shall determine the port, where the registration shall be made, by themselves.

Types of Registry Books
Art. 34. (amend. - SG 113/02) (1) The registry books shall be:
1. registry books of the small ships;
2. registry books of the large ships;
2. registry books of the ships rented in a bareboat charter contract;
4. registry books of the ships in construction with a length of at least 12 meters.
(2) Into the registry book of the small ships shall be registered ships:
1. with a length of at most 20 meters inclusive – for the rivergoing vessels;
2. with a size of at most 40 gross tons inclusive – for the seagoing ships.
(3) Into the registry books of the large ships shall be registered ships:
1. with a length of at least 20 meters inclusive – for the rivergoing vessels;
2. with a size of more than 40 gross tons inclusive – for the seagoing ships.
(4) (revoked - SG 36/08)
(5) The registry books of the individual categories of ships subject to registration shall constitute a common unified register of the Bulgarian ships.

Registration Certificate (title amend. - SG 113/02; amend. - SG 85/10)
Art. 35a. (new – SG 113/02; amend. - SG 55/04; amend. - SG 85/10) (1) For ships, registered in the registry books referred to in Art. 34, Para 1, Item 3 shall be issued a temporary registration certificate.
(2) The document referred to in Para 1 shall certify the right of the ship to fly the Bulgarian flag for the term of effect of the bareboat charter contract, but for 5 years at most.

Temporary Registration Certificate (Title amend. - SG 85/10)
Art. 35a. (new – SG 113/02; amend. - SG 55/04) (1) To ships, registered in the registry books referred to in Art. 34, Para 1, Item 3 shall be issued:
1. a temporary act of nationality when carrying out foreign going;
2. temporary sailing permit when carrying out coastwise sailing.
(2) The documents referred to in Para 1 shall certify the right of the ship to fly the Bulgarian flag for the term of effect of the bareboat charter contract, but for 5 years at most.

Temporary Sailing Certificate
Art. 36. (1) (amend. - SG 41/01; prev. text of art. 36, amend. - SG 113/02) The Bulgarian diplomatic or consular mission shall issue a temporary sailing certificate for flying the flag of the Republic of Bulgaria to any ship acquired abroad. It shall have effect by the arrival of the ship at a Bulgarian port where she shall be registered for one year at most. For the issue of the certificate the Bulgarian diplomatic or consular mission shall immediately notify the Executive Agency "Maritime Administration".
(2) (new – SG 113/02; amend. - SG 87/05; amend. - SG 85/10) The certificate referred to in Para 1 shall be issued to the ships under construction in the Republic of Bulgaria by the Minister of Transport, Information Technologies and Communications after their launching.

Terms and Effect of the Registration
Art. 37. (1) Any ship registered in a foreign register may be entered in a Bulgarian register after being removed from the foreign register. After the registration in the Bulgarian register all earlier registrations in foreign registers regarding the same ship shall have no effect.
(2) The registration of a Bulgarian ship in a foreign register shall not have any legal effect if the ship was not removed from the Bulgarian register according to the established order.
(3) (new – SG 113/02) The effect of the registration referred to in Para 1 and 2 shall not concern the ships registered in the registry books referred to in Art. 34, Para 1, Item 3 or in a foreign register of the ships rented in a bareboat charter contract.

Data for Registration
Art. 38. (1) In the register shall be entered:
1. the port where the registration is made;
2. the ordinal number and the date of registration;
3. (amend. - SG 113/02) the previous name, registration and number of the ship in the International Maritime Organization (IMO), if available;
4. the time and place of construction of the ship;
5. the name and the seat of the owner;
6. the grounds of acquisition of the ship;
7. technical characteristics of the ship;
8. (amend. - SG 85/10) mortgages and establishment of other restrictions to the disposal rights in the ship;
9. (new – SG 113/02) the name, address and nationality of the charterer to a bareboat charter contract;
10. (prev. text of item 09, suppl. - SG 113/02) the date and grounds of registration or cancellation of the ship.
(2) Any change of the circumstances entered in the register shall be also subject to registration.
(3) (new – SG 113/02; revoked - SG 36/08)

Application for Registration and Cancellation (title suppl. - SG 113/02)
Art. 39. (1) (amend. - SG 113/02) The registration and cancellation from the register shall be carried out upon an application by the owner of the ship in which all necessary data shall be noted.
(2) (amend. - SG 85/10) The notary or the consul, before whom the transfer of the property, the arrangement of the mortgage of a ship or other encumbrances were made, shall notify the authority keeping the register for registration of the ships ex officio.

Registration of a Ship, Rented in a Bareboat Charter Contract
Art. 39a. (new – SG 113/02) (1) Any ship rented in a bareboat charter contract may be registered in the registry books referred to in Art. 34, Para 1, Item 3 when the following conditions are present:
1. to be rented by a Bulgarian legal or natural person;
2. (revoked - SG 85/10)
3. not to be registered in another register under the conditions of bareboat charter contract;
4. (amend. - SG 87/05) to have an excerpt of the primary registration of the ship presented containing a description of the ship and data of the shipowner.
(2) In order a registration as referred to in Para 1 to be made, the bareboat charterer shall present to the Executive Agency "Maritime Administration" a written consent on flying the Bulgarian flag by the ship according to this order given by:
1. the competent authorities of the primary register;
2. the shipowner.
3. (revoked – SG 87/05)

Conditions on Flying a Foreign Flag by a Bulgarian Ship
Art. 39b. (new – SG 113/02) Any ship registered in the registry books referred to in Art. 34, Para 1, Items 1 and 2 may be temporarily registered in a register of another country as a ship rented in a bareboat charter contract with the right to fly its flag for the term of the contract after the written consent of the Executive Director of the Executive Agency "Maritime Administration", provided that:
1. (revoked - SG 85/10)
2. the following documents were presented to the Executive Agency "Maritime Administration":
a) a written application by the shipowner for registration of the ship under the conditions of a bareboat charter contract in a foreign register;
b) a written consent with a notary certification of the signatures for such registration by all mortgage creditors or persons in favour of whom other real encumbrances or restrictions were arranged, if available;
c) a written statement by the shipowner on handling over to the Executive Agency "Maritime Administration" all necessary ship documents within 14 days from the registration of the ship in the relevant register;
d) a written declaration by the renter that the ship will not fly the Bulgarian flag for the term of registration;
e) the bareboat charter contract.

Primary Register
Art. 39c. (new – SG 113/02; amend. - SG 85/10) Primary shall be the register in which the property in the ship shall be registered and in which the mortgages of a ship or other real encumbrances and restrictions of the right of disposal shall be registered.

Compatible Register
Art. 39d. (new – SG 113/02; amend. - SG 87/05; revoked - SG 85/10)

Term of Application
Art. 40. (1) (amend. - SG 113/02) The application for registration in the registry shall be submitted within 6 weeks from the day when the persons obliged to submit the applications become aware of the circumstances subject to registration.
(2) In case of acquiring a ship abroad this term shall be six weeks from the day when the ship arrived at a Bulgarian port for the first time.
(3) (amend. - SG 113/02; revoked - SG 85/10)

Appeal
Art. 40a. (new – SG 113/02; amend. - SG 30/06, in force from 12.07.2006) The refusal of the Executive Agency "Maritime Administration" to perform the registration in the register of a circumstance subject to entry may be appealed according to the order of the Administrative Procedure Code.

Registration of Ships under Construction
Art. 40b. (new – SG 113/02) (1) The ships under construction shall be registered in the register referred to in Art. 34, Para 1, Item 4 after the moment of laying the keel or performing equivalent constructional works.
(2) (supple. - SG 85/10) The registration of a ship under construction shall be carried out upon application by the owner of the ship under construction to which the construction contract shall be attached. In case of transfer of the ownership in a ship under construction that is already registered in the register books referred to in Art. 34, Para 1, Item 4, the ship may remain under the same account until its completion, if so requested by the new owner, Art. 28 not applicable in such cases.
(3) The Executive Agency "Maritime Administration" shall issue to a ship under construction a certificate for registration in the register.

Cancellation of the Registration
Art. 41. (1) Cancelled from the register shall be any ship:
1. (amend. - SG 41/01) for which the grounds to fly the Bulgarian flag are no longer available;
2. sunken, missing or wrecked;
3. declared unable to be repaired or her repair became economically worthless.
(2) (new – SG 113/02) The Executive Agency "Maritime Administration" may cancel any ship not meeting the safety requirements ex officio. The cancellation shall be made when the following conditions are consecutively fulfilled:
1. the term of validity of the ship safety certificates has expired;
2. for a term of three months the shipowner has not notified the Agency of performing an inspection for renewal of the ship safety certificates or for withdrawing the ship temporary from operation;
3. for a term of one month the shipowner has not replied to the written invitation to present evidence that the ship hall not be subject to cancellation.
(3) (prev. text of para 02, suppl. - SG 113/02) In the cases referred to in Para 1, Items 1 and 3, and Para 2 the cancellation of the ship shall be made with the consent of the creditor the real right of whom was entered in the register.

Missing Ship
Art. 42. (amend. - SG 113/02) The ship shall be deemed missing when no news have been heard from her for one month in the Black Sea, the Mediterranean Sea or the inland waterways of Europe and for three months in case of ocean sail. If the receipt of news could have been delayed because of military operations, this term shall be six months.

Effect of the Registration for Third Persons
Art. 43. The circumstances subject to registration in the register shall have effect to third persons only after their registration.

Publicity of the Registers
Art. 44. The registers shall be open. The persons having interests therein may request certified excerpts from the register for which they shall pay a fee.

Ordinance on the Register of Ships
Art. 45. (amend. - SG 113/02) (1) (amend. - SG 87/05; amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall establish in an ordinance the conditions and the order of registration of the ships.
(2) For any entries, excerpts and certifications of the circumstances, subject to registration in the Register of the Bulgarian Ships, made, the Executive Agency "Maritime Administration" shall collect fees in amount determined by the Council of Ministers.

Chapter three.
REAL RIGHTS AND PRIORITIES
Section I.
Transfer and Mortgage of Ships
Form of the Transaction
Art. 46. (1) (amend. - SG 113/02; amend. - SG 85/10) The transactions on transferring property, as well as on arranging a mortgage on a ship or on a ship under construction shall be carried out in written form with notary certified signatures.
(2) (revoked – SG 113/02)
(3) Legal mortgage shall not be allowed.

Validity of the Transaction
Art. 47. (1) (suppl. - SG 113/02) Any transfer of property in a ship or in a ship under construction may be opposed to third persons only after its entry in the register.
(2) (amend. - SG 113/02; amend. - SG 85/10) The arrangement of mortgage on a ship or on a ship under construction shall be valid after its entry in the register.
(3) (amend. - SG 85/10) When the ship was supplied a temporary registration certificate, any transfer of the property in the ship may be opposed to third persons only after its entry in this certificate.

Mortgage on a Ship
Art. 47a. (new - SG 85/10) (1) A claim may be secured by arrangement of mortgage on a ship that is entered in the register books.
(2) Mortgage on a ship may be arranged for own or other person's claim.

Term of Effect of the Registration
Art. 48. (1) (amend. - SG 85/10) The mortgage on a ship or on a ship under construction shall have effect for 5 (five) years from the date of registration, if not renewed by the creditor.
(2) (amend. - SG 85/10) The right of priority of payment shall include all claims pacified in the mortgage contract.

Object of the Mortgage on a Ship (Title amend. - SG 85/10)
Art. 49. (amend. - SG 85/10) (1) A mortgage may be arranged on an entire ship. It shall extend also to the ship insurance compensation but shall not include the cargo, the carriage price and the rent.
(2) The mortgage on a ship shall cover at least its hull, mechanisms and equipment.

Effect of the Mortgage
Art. 50. (1) The mortgaged ship shall not be passed in possession of the mortgage creditor.
(2) The enforcement against ships, property of the Bulgarian state, shall not be allowed. Exceptions to this principle shall be allowed only in favour of the creditors who have granted a credit for the purchase of the ship and in favour of whom the mortgage was arranged.
(3) The enforcement shall be suspended when a bank guarantee is presented.
(4) (supple. - SG 85/10) The change of the port where the ship was registered or the change of the name of the mortgaged ship, as well as constructional changes to the ship, without the written consent of the mortgage creditors shall not be allowed.

Duties of the Mortgage Debtor
Art. 50a. (new - SG 85/10) For the period of validity of the mortgage the mortgage debtor shall be obliged to maintain the class of the ship, if available, the validity of the ship documents, as well as to insure the ship against marine risks.

Rights of the Mortgage Creditor
Art. 50b. (new - SG 85/10) (1) In case of default of the mortgage debtor the creditor may sell the mortgaged ship, or if so stipulated in the mortgage contract - rent the ship, assign its management to a manager or act in any other way stipulated in the contract.
(2) If the mortgage debtor hinders the performance of the activities referred to in Para 1, the mortgage creditor shall exercise his rights as set out in the Code of Civil Procedure. The revenue from exercising the rights shall cover the secured debt after deduction of the costs.
(3) The mortgage creditor shall be liable for the caused damages, if any of his rights referred to in Para 1 was unduly exercised.

Enforcement against the Price of a Ship
Art. 50c. (new - SG 85/10) (1) A creditor whose claim is secured by mortgage shall be entitled to preference of discharge from the price of the mortgaged ship, regardless of its owner.
(2) The right to preference of discharge shall include also the income from the ship since the day in which, in cases of enforcement, the owner is accountable for them as set out in the Code of Civil Procedure.
(3) If the claim is for a certain pecuniary amount or covered by pecuniary stipulated damages, the creditor, based on the mortgage contract, shall be entitled to claim preliminary injunction as set out in Art. 418 of the Code of Civil Procedure.

Validity of the Mortgage Arranged Abroad
Art. 51. (1) The mortgage arranged on a ship acquired or built abroad, before becoming Bulgarian property, shall be valid, provided that:
a) it has contractual character;
b) (amend. - SG 85/10) it was registered upon its arrangement according to the law of the primary register;
c) it was registered according to the order of this Code simultaneously with the registration of the ship in the register.
(2) If the aforementioned conditions were met the mortgage shall preserve the ranking it had before the ship became Bulgarian property.

Ranking of the Mortgages
Art. 52. In case of two or more mortgages on the same ship the order of preference of discharge shall be determined by the date of registration. If the registration is made on the same day, considered shall be the consecutive number in the register.

Section II.
Priority of Claims
Effect
Art. 53. (1) The claims provided in this Chapter shall have priority over any other general or specific priority in movable property stipulated in other laws.
(2) (amend. - SG 85/10) These priority claims shall be preferred also over the mortgages on a ship regardless of the order of their registration.

Order of Priority Claims
Art. 54. The following claims shall have preference of discharge from the assets referred to in Art. 55 in the order of enumeration:
a) the judicial expenses and the expenses made in common interest of the creditors with the purpose of preserving the ship, subject to public sale, or related to the sale of a ship and apportionment of the sum received;
b) the claims for ship or port fees and the payments for services rendered in the port, pilotage services and the expenses related to the supervision of the ship and her condition, made after the entrance of the ship in the port in question;
c) the claims of the employees arising of employment contracts, the claims related to the social insurance and the claims for disability or death, as far as all specified claims are related to the ship;
d) the claims for salvage rewards and the allowance in general average;
e) (amend. - SG 113/02) the claims for compensation due for damages caused by collisions or other accidents, as well as the claims for damages caused to the passengers, including the members of the crew; for compensation of damages caused by loss or damage of the cargo or the baggage;
f) the claims arising of the acts of the master pursuant to his legal competences (Art. 95 – 98), if these acts are caused by actual needs for preserving the ship or to continue her course, regardless of whether the master is also the shipowner and whether the claim belongs to the master or to a third person.

Sums for Discharging the Priorities in the Ship
Art. 55. The claims referred to in Art. 54 shall be discharged:
a) from the value of the ship;
b) from the freight and the fees for carriage of passengers and their baggage for the course during which the priority claim has arisen.
c) from the allowance for the ship in general average, as well as from the compensations for damages suffered by the ship and still non-recovered or resulting from the loss of the carriage price;
d) from the reward due to the ship for salvage before the completion of the course, while deducting the sums due to the master and the crew of the ship.

Priority Claims in the Cargo
Art. 56. The right of preference of discharge from the assets referred to in Art. 57 in the order of enumeration shall have the following claims, including over the claims ensured by a pledge in the assets:
a) the judicial expenses and the expenses made in common interest of the creditors with the purpose of preserving the cargo, subject to public sale, or related to the sale of a cargo and apportionment of the sum received, customs duties and port fees, due for services related to the cargo;
b) the claims for salvage rewards and the allowance due for adjustment in general average;
c) the claims arising of the acts of the master pursuant to his legal competences (Art. 95 – 98) for preservation of the cargo or for continuing the course, regardless of whether the master is also the shipowner and whether the claim belongs to the latter or to a third person;
d) the claims for freight and other payments due for the carriage of certain cargo.

Sums for Discharging the Priorities in the Cargo
Art. 57. The claims referred to in Art. 56 shall be discharged:
a) from the value of the cargo undelivered to the consignee;
b) from the compensation for damaged cargo;
c) from the compensation for general average due for the cargo.

Proportionality of the Priorities of Same Ranking
Art. 58. (1) The claims referred to in Art. 54 and 56 shall be discharged according to their ranking, and within each ranking – proportionally. The claims referred to in Art. 54, Letters "d" and "f" and Art. 56 shall be discharged within the specified rankings according to the reverse order of their arising.
(2) The claims arising of the same event shall be deemed to have arisen simultaneously.

Priority Claims from the Last Voyage
Art. 59. (1) The priority claims referred to in Art. 54, related to the last voyage, shall be discharged before the claims of the preceding voyage.
(2) The claims referred to in Art. 54, Letter "c", regarding several courses, shall be discharged equally with he claims for the last course.

Duration of the Priority
Art. 60. (amend. - SG 113/02) The right of preference of discharge from the assets referred to in Art. 55, Letters "b" and "d" shall remain in force until the respective sums are still not paid or not delivered to the shipowner by the master.

Termination of the Priority
Art. 61. (1) The right of preference of discharge from the value of the ship or the cargo shall be terminated with the apportionment of the sums received from the sale.
(2) (amend. - SG 113/02) The priority shall be terminated also with the expiration of one year for the claims referred to in Art. 54 and 56, and the priorities for the claims referred to in Art. 54, Letter "e" and Art. 56, Letter "c" shall be terminated with the expiration of 6 months.

Exception of the Insurance Compensations
Art. 62. The claims subject to the right of preference of discharge may not be discharged from the insurance compensations due for the ship and the cargo, except in case of their complete loss.

Chapter four.
SAFETY CONDITIONS OF SHIPPING (TITLE AMEND. - SG 113/02)
Section I.
Measurement of Ships
Scope
Art. 63. (1) (amend. - SG 113/02; prev. text of art. 63 – SG 55/04) The measurement of a ship shall consist in determination of her gross and net tonnage for the seagoing ships or displacement for the rivergoing ships and of the rest of the technical data subject to registration.
(2) (new – SG 55/04) The measurement of the ships in the Republic of Bulgaria shall be carried out by the Executive Agency "Maritime Administration".
(3) (new – SG 55/04) The measurement of the tonnage of the seagoing ships may be carried out also by organizations recognized pursuant to Art. 73, Para 2.

Compulsory Measurement
Art. 64. Subject to compulsory measurement shall be:
a) the Bulgarian merchant ships;
b) (amend. - SG 41/01; amend. - SG 113/02) the foreign merchant ships visiting a Bulgarian port for the first time and flying the flag of a country with which the Republic of Bulgaria has not signed an agreement on mutual recognition of the measurement certificates, or not holding such certificates issued by organizations recognized according to the relevant order in Bulgaria and the European Union.

Voluntary Measurement
Art. 65. Other ships may be measured upon request of the shipowner or the master.

Measurement Authorities
Art. 66. (amend. - SG 41/01; amend. - SG 113/02; revoked – SG 55/04)

Regulatory Measurements
Art. 67. (1) (prev. text of art. 67 – SG 113/02) Any ship subject to compulsory measurement may be put to regulatory measurement inspection.
(2) (new – SG 113/02; amend. - SG 36/08) All fishing ships carrying out farm fishery shall be subject to regulatory measurement for the purposes of the Register of the Fishing Ships kept by Executive Agency on Fishery and Aquacultures.

Regulatory Measurement of Foreign Ships
Art. 68. (amend. - SG 41/01; amend. - SG 113/02) Any foreign ship visiting a Bulgarian port and flying the flag of a country with which the Republic of Bulgaria has signed an agreement on mutual recognition of the measurement documents, or holding a measurement certificate issued by a classification society recognized in Bulgaria and the European Union, may be put to regulatory measurement of the gross and net tonnage or of the displacement for the rivergoing ships.

Measurement Certificate
Art. 69. After measurement of the ship a measurement certificate shall be granted.

Measurement Fees
Art. 70. (1) (amend. - SG 113/02) The Executive Agency "Maritime Administration" shall collect fees for measurement of the ships.
(2) (suppl. - SG 113/02) For regulatory measurements no fees shall be collected, if the results of the regulatory measurement correspond to the data in the measurement certificate or the measurement is carried out under Art. 67, Para 2.

Ordinance on Measurement
Art. 71. (amend. - SG 41/01; amend. - SG 87/05; amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall determine the order of measurement of the ships in an ordinance.

Section II.
Safety of Shipping (title amend. - SG 113/02)
Basic Requirements
Art. 72. (amend. – SG 113/02) (1) A ship may not be put in operation, if it was found according to the relevant order by the Executive Agency "Maritime Administration", that she was constructed, equipped and her crew meets the requirements for safety of shipping in terms of number and qualification.
(2) The shipowner shall be obliged to render assistance to the competent authorities and to undertake the necessary measures for safety, for environment protection from pollution by ships and for protection and recovery of the fish resources regarding the ship and the crew.
(3) (new – SG 55/04; amend. – SG 87/05; amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall determine in an ordinance the safety requirements regarding the different types of ships, their construction and ship equipment.
(4) (prev. text of para 03 – SG 55/04) The ships and vessels, sailing the internal waters, the territorial sea and the adjacent zone of the Republic of Bulgaria shall be equipped with radiocommunication means approved by the Executive Agency "Maritime Administration" in compliance with the requirements for registration, equipment, assembling and usage of the radio equipment according to the Law of the Telecommunications.
(5) (prev. text of para 04 – SG 55/04) The self-propelled ships, sailing the inland waterways, the small ships, the ferryboats and non-self-propelled vessels and devices shall be equipped with the respective ship radiotelephone stations for carrying out radio exchange within the range of the meter waves, approved by the Executive Agency "Maritime Administration".
(6) (prev. text of para 05 – SG 55/04; amend. – SG 87/05; amend. - SG 85/10) The conditions and order of equipment, registration and usage of the radiotelephone services in shipping on inland waterways shall be determined in an ordinance issued by the Minister of Transport, Information Technologies and Communications in compliance with the regional agreement on radiotelephone services on the inland waterways.

Survey of Ships and Shipowners
Art. 73. (amend. – SG 41/01; amend. – SG 113/02) (1) The Executive Agency "Maritime Administration" shall carry out survey of ships and shipowners for establishing the observance of the requirements for safety, safe operation of the ships and prevention of environment pollution. On the basis of the survey the Executive Agency "Maritime Administration" shall grant the relevant certificates.
(2) (amend. – SG 87/05; amend. - SG 85/10) The survey referred to in Para 1 may be carried out also by other organizations, recognized by the Executive Agency "Maritime Administration" and approved by the Minister of Transport, Information Technologies and Communications.
(3) (amend. – SG 87/05; amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall determine in an ordinance the conditions and the order of carrying out the survey.
(4) (amend. – SG 87/05; amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall determine in an ordinance the requirements, which the organizations referred to in Para 2 shall meet, as well as the conditions and the order of their recognition and of withdrawal of the authorizations granted for carrying out the survey.

Determining the Class of the Ships
Art. 73a. (new – SG 113/02; amend. – SG 87/05; amend. - SG 85/10) Determining the class of the Bulgarian ships, the technical supervision of their designing, construction, operation and repair shall be carried out by Bulgarian legal persons (classification societies) or by foreign classification societies, recognized by the Executive Agency "Maritime Administration" and approved by the Minister of Transport, Information Technologies and Communications according to conditions and order determined in the ordinance referred to in Art. 73, Para 4.

Arrest of Ships
Art. 74. (1) (amend. - SG 113/02) The Executive Agency "Maritime Administration" may detain a ship in the port and perform a survey thereof within 24 hours, if there are reasonable grounds to believe that she does not meet the prescribed safety requirements.
(2) (amend. - SG 113/02) In case of established deficiencies in the ship, making her unsuitable for shipping or for the purpose the shipowner intends to use her, the Executive Agency "Maritime Administration" shall prohibit the operation and shall specify the deficiencies, which shall be remedied.

Safety Certificates (title amend. - SG 113/02)
Art. 75. (1) (amend. - SG 113/02) After each survey of the general condition of the ship, carried out by the Executive Agency "Maritime Administration" or by the societies referred to in Art. 73, Para 2, the Executive Agency "Maritime Administration" shall grant relevant safety certificates, if the requirements for granting them are met.
(2) (amend. - SG 113/02) On the safety certificate shall be noted the term of its validity.
(3) (amend. - SG 113/02) If the condition of the ship allows that, the term of validity of the safety certificate, where allowable, may be extended by up to five months in order to make it possible for the ship to reach the port specified for survey. In any case, the term of validity shall expire in the moment the ship arrives at the port in question.
(4) (amend. - SG 113/02) The safety certificate shall lose its validity before expiration of the term it was granted for, if changes have occurred in the ship threatening her safety.

Safety Certificate, Granted by a Foreign Control Authority (title amend. - SG 113/02)
Art. 76. (amend. - SG 41/01; amend. - SG 113/02) The safety certificates, granted to a Bulgarian ship by control authorities of other countries, with which the Republic of Bulgaria does not have agreements on recognition of the safety certificates, shall be recognized equally with the Bulgarian certificates, if the survey of the ship has been carried out with the consent of the Bulgarian control authority.

Observing the Safety Rules
Art. 77. (1) (prev. text of art. 77, amend. - SG 113/02) Seagoing and rivergoing ships and hydroplanes, as long as they are located in a sea or in waters connected with a sea and sailed by seagoing ships, shall be obliged to observe the rules on preventing collisions of ships on sea.
(2) (new – SG 113/02) The ships sailing the inland European waterways shall be obliged to observe the relevant rules of shipping safety.

Application of the Rules to Foreign Ships
Art. 78. (amend. - SG 41/01; amend. - SG 113/02) The rules on shipping safety and supervision of the fishing ships in the internal waters, the territorial sea and the inland waterways of the Republic of Bulgaria shall apply also to foreign ships, unless otherwise provided by an international treaty, to which the Republic of Bulgaria is a party.

Investigation of Accidents
Art. 79. (amend. - SG 41/01; amend. - SG 113/02; amend. - SG 87/05, in force from 01.01.2006) (1) (amend. - SG 85/10) The Ministry of Transport, Information Technologies and Communications shall establish a specialized unit of investigation of accidents in the marine spaces and the inland waterways.
(2) The unit referred to in Para 1:
1. shall maintain a system for reporting the accidents referred to in Para 1;
2. shall carry out the investigation of the accidents referred to in Para 1;
3. shall keep an archive of the investigations and maintain an information database of the accidents referred to in Para 1;
4. shall draw up and distribute an information bulletin of the accidents referred to in Para 1;
5. in case of investigation of the accidents referred to in Para 1 shall analyse the actions of the natural and legal persons in the field of shipping and the functioning of the sites and facilities related to the accident in question.
(3) (amend. - SG 85/10) The specialized unit referred to in Para 1 shall be supported from the budget of the Ministry of Transport, Information Technologies and Communications.
(4) (amend. - SG 85/10) After completing the investigation the head of the unit shall provide a report to the Minister of Transport, Information Technologies and Communications containing recommendations for measures for preventing similar accidents in the future.
(5) The conclusions in the recommendations report shall not be subject to appeal and may not be used in the course of civil, administrative-penal or criminal proceedings.
(6) The inspectors of the unit shall have the right of full access to all evidence, related to the accidents referred to in Para 1, as well as of full cooperation on behalf of the state authority, the functions of which, with regard to its competence, are related to the accidents.
(7) (amend. - SG 85/10) The head of the unit shall present to the Minister of Transport, Information Technologies and Communications an annual report of the measures undertaken by the addressees of the recommendations in the report referred to in Para 4, which shall be obligatorily published in the information bulletin.
(8) (amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications shall determine in an ordinance the order of investigating the accidents in the marine spaces and the inland waterways.

Fees
Art. 80. (amend. - SG 113/02) For carrying out survey, for granting safety certificates, for issuing and certifying ship documents and for extending their term of validity the Executive Agency "Maritime Administration" shall collect fees in amount, determined in a tariff of he Council of Ministers.

Section III.
Ship Papers
Types
Art. 81. (amend. - SG 113/02) Depending on the type, the tonnage and the sailing area the Bulgarian ships shall be provided with ship papers in compliance with the national legislation and the international treaties, to which the Republic of Bulgaria is a party.

Special Ships
Art. 82. The ships, performing a special state service, shall not be obliged to have a measurement certificate. Their capacity may be determined in a simplified manner, and a relevant certificate shall be issued by the competent authorities for this purpose.

Foreign Going Ships
Art. 83. (amend. - SG 41/01; revoked – SG 113/02)

Registration Certificate and Temporary Registration Certificate (title suppl. - SG 55/04; amend. - SG 85/10)
Art. 84. (amend. - SG 41/01; amend. - SG 113/02) (1) (amend. - SG 55/04; amend. - SG 85/10) The registration certificate shall certify the right of the ship to fly the Bulgarian flag and the ownership.
(2) (amend. - SG 85/10) In the registration certificate shall be entered:
1. (amend. - SG 55/04) the shipowner;
2. the name or the number of the ship;
3. the port, where the ship is registered, including volume, page and number of the registry book;
4. length, width, height of the board, gross and net tonnage, call sign;
5. number of the ship from the International Maritime Organization (IMO), where available.
6. (revoked – SG 55/04)
(3) (new – SG 55/04; amend. - SG 85/10) The holder in a bareboat charter contract, the rental term, as well as the data referred to in Para 2, Items 2, 3, 4 and 5 shall be entered into the temporary registration certificate.

Sailing Permit and Temporary Sailing Permit (title amend. - SG 55/04)
Art. 84a. (new – SG 113/02; amend. - SG 55/04; revoked - SG 85/10)

Issue of a Registration Certificate (title amend. - SG 85/10)
Art. 85. (amend. - SG 41/01; amend. - SG 113/02; amend. - SG 55/04; amend. - SG 87/05; amend. - SG 85/10) The registration certificate and the temporary registration certificate shall be issued by the executive director of Executive Agency "Maritime Administration" or officials authorised by him.

Ordinance on Keeping the Ship Papers
Art. 86. (amend. - SG 41/01; amend. - SG 113/02; amend. - SG 87/05; amend. - SG 85/10) The form of the ship papers and all requirements related to them and their granting shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications.

Chapter five.
MASTER AND SHIP CREW
Crew of the Ship
Art. 87. (1) (amend. - SG 41/01; prev. text of art. 87, amend. - SG 113/02; amend. - SG 87/05; amend. - SG 85/10) The crew of the ship shall consist of a master, the other officers and the ship's company, enrolled in the crew list. The crew of the Bulgarian ships shall be manned with the necessary number of qualified seafarers, having the relevant legal capacity according to an ordinance on the competence of the seafarers in the Republic of Bulgaria, issued by the Minister of Transport, Information Technologies and Communications.
(2) (new – SG 113/02) The physical examination and the registration of the competent seafarers shall be carried out by the Executive Agency "Maritime Administration" pursuant to conditions and order determined in the ordinance referred to in Para 1.
(3) (new – SG 55/04) In the ordinance referred to in Para 1 shall be determined also the requirements to the educational institutions and the teachers, carrying out training in the marine and river subjects.
(4) (new – SG 55/05; amend. - SG 87/05; amend. - SG 85/10) The members of the crew shall meet the requirements of health fitness, determined in an ordinance, issued by the Minister of Transport, Information Technologies and Communications and the Minister of Health.
(5) (new – SG 77/05, in force from 27.09.2005; suppl. - SG 62/06, in force from 01.01.2007) In the ordinance referred to in Para 1 shall be determined also the conditions and the order of recognizing the competence of the seafarers, acquired in a Member State of the European Union and of the European Economic Area, in Switzerland and in third countries.

Formation of the Crew
Art. 88. (amend. - SG 41/01; amend. - SG 113/02; amend. - SG 85/10) (1) The ship crew of merchant ships shall be formed by qualified seafarers. At least 25 percent of the management and operational level positions and at least 25 percent of the executive level positions shall be occupied by Bulgarian nationals.
(2) The ship crew of merchant ships may be formed of persons holding competency certificates, issued in compliance with the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers compiled in London on 7 July 1978 (prom. - SG 31/05; core. - SG 86 and 91/09), as amended, (STCW, as amended) by the Republic of Bulgaria, by another Member State of the European Union or by a third country recognised as set out by the secondary legislation of the European Union. The ship crew of the merchant ships sailing the internal waterways of Europe shall be formed by persons holding competency certificates issued in compliance with the Recommendations on Preparation of the Ship Drivers and their Provision with Competency Certificates for International Shipping of the Inland Transport Committee of the United Nations Economic Commission for Europe and the Danube Commission.
(3) The shipowners shall appoint the ship crew without discrimination, based on nationality, religion, payment and other labour conditions, but knowing a language common on the ship determined by them.
(4) In all cases, the master and the chief engineer officer of the ship shall be Bulgarian nationals or nationals of a Member State of the European Union, or a contracting state to the Agreement on the European Economic Area, or of the Swiss Confederation.
(5) The crew of the sport, tourism and entertainment vessels and others that do not perform economic activity may be formed by competent seafarers - Bulgarian and/or foreign nationals.
(6) Where in extraordinary circumstances the shipowner is not able to comply with the requirement of Para 1, he may hire with the permission of the Executive Agency "Maritime Administration" competent seafarers who are nationals of other Member States of the European Union, of a contracting state to the Agreement on the European Economic Area, or of the Swiss Confederation, and where impossible - nationals of third countries. The permit shall be granted until the first port for changing the crew claimed in advance by the shipowner but in no case for a period longer than three months.

Inspections, Related to the Training and the Qualification of the Seafarers
Art. 88a. (new – SG 113/02) (1) The Executive Agency "Maritime Administration" shall periodically carry out inspections for compliance of the performed training for acquiring competency and of the additional qualification of the seafarers with the requirements of the ordinance referred to in Art. 87, Para 2 and the international treaties, to which the Republic of Bulgaria is a party.
(2) (amend. - SG 55/04) When non-compliance with the requirements of the ordinance referred to in Art. 87, Para 2 and the international treaties is established, the Executive Agency "Maritime Administration" shall not grant competency certificates or certificates for specialized or additional qualification.
(3) For establishing the competency and for granting competency certificates the Executive Agency "Maritime Administration" shall collect fees in amount, determined by the Council of Ministers.

Employment Relationships
Art. 88b. (new – SG 113/02) (1) The employment relationships and those directly related to them between the members of the crew and the shipowner shall be regulated in an ordinance of the Council of Ministers.
(2) (suppl. - SG 55/04) In the ordinance referred to in Para 1 shall be determined also the requirements for:
1. safe and healthy labour conditions on board the ships, considering the specifics of the carriage carried out;
2. the shipowners regarding the observation of the labour protection conformity;
3. prevention of professional diseases and incidents on board the ships;
5. maintenance of relevant hygiene standards on board the ship.

Administrative Authority of the Master
Art. 89. (amend. - SG 41/01) (1) The master of the ship shall be entrusted the management of the ship, including the navigation, as well as undertaking all necessary measures for safe sailing and maintenance of the order in the ship.
(2) All persons on board shall be obliged to obey the orders of the master, directed to secure the safety and the order on the ship.
(3) The master of the ship shall have the right to undertake the necessary measures against any person on board, in case of non-observance of his lawful orders. If the behaviour of the persons on board threatens the safety of the ship or of the people or properties on board, or does constitute a crime under the Penal Code of the Republic of Bulgaria, the master shall have the right to detain them in isolated premises.

Authority of the Master in Case of Crimes
Art. 90. (amend. - SG 41/01) (1) (amend. - SG 113/02; amend. - SG 87/05; amend. - SG 85/10) When, during the sailing of the ship, a crime under the Penal Code of the Republic of Bulgaria is committed, the master shall perform the functions of an investigation authority, guided by the Penal Procedure Code and an instruction on performing investigation on the Bulgarian ships, approved by the Chief Prosecutor of the Republic of Bulgaria and the Minister of Transport, Information Technologies and Communications.
(2) The master shall have the right to detain the person, suspected in committing a crime, until the latter being delivered to the competent authorities at the first Bulgarian port, where the ship arrives.
(3) When a crime is committed on board during the stay of the ship in a Bulgarian port, the master shall be obliged to deliver the person, who has committed the crime, to the competent local authorities.

Capacities of the Master in Civil Status and Notary Functions
Art. 91. (amend. - SG 41/01) (1) (amend. - SG 113/02) In case of birth, marriage or death, occurred on a Bulgarian ship, located outside the territorial borders of the Republic of Bulgaria, the master shall be obliged to make an entry of the event in the logbook of the ship and to draw up an act, compliant with the requirements of the Law on the Civil Registration.
(2) (amend. - SG 113/02) The master shall hand over the acts drawn up in the aforementioned cases to the civil status service at the municipality of the first Bulgarian port the ship has entered or to the Bulgarian consul abroad.
(3) The master shall be obliged to accept for keeping self-written wills by persons on board, which shall be handed over to the notary at the first Bulgarian port the ship has entered, or to the Bulgarian consul abroad.
(4) (amend. - SG 113/02) When the ship is located outside the territorial borders of the country, the master may carry out certification of signatures of persons on board, which shall have the effect of a notary certification after entry in the logbook of the ship.

Duties of the Master Regarding Navigation
Art. 92. (1) (amend. - SG 113/02) The master shall not have the right to leave the ship at the time of performance of duties, requiring his presence on board, unless exceptional circumstances demand that.
(2) (suppl. - SG 113/02) The master shall be obliged to navigate the ship personally in entering, passing and exiting ports, harbours, canals, locks and critical sections, straits and rivers, as well as in cases, when specific difficulties or dangers arise.
(3) (suppl. - SG 113/02) The master shall be responsible for the navigation also in cases of using pilot or guide services.

Duties of the Master Regarding the Safety of Sailing and Protection of the Environment (title suppl. - SG 113/02)
Art. 93. (1) The master shall be obliged, before the beginning of the course and during the course, to take the due care for the ship being in seaworthiness and complying with the requirements regarding safety, the necessary preparation, supply and recruitment of a crew.
(2) The master shall be obliged to take care for the correct loading, fixing and dislocation of the cargo, as well as for its unloading, and during the course, to take the due care for protecting the cargo of damages and destruction by taking measures for securing the interests of the persons related to the cargo and the freight.
(3) (new – SG 113/02) The master shall be obliged to care of the environment protection and the fish resources.
(4) (new – SG 113/02; revoked - SG 36/08)
(5) (new – SG 55/04) For passing the La Manche strait or for sailing the North Sea the Executive Director of the Executive Agency "Maritime Administration" shall issue compulsory orders to the masters of ships, flying the Bulgarian flag, for using solely the services of pilots, holding certificates, granted by a competent authority of a country at the coast of the La Manche strait or the North Sea.

Duty of the Master in Case of Military Operations
Art. 94. When military operations, regardless of whether a war or blockade is declared, threaten the departure, destination or the next port to be visited or the waters which the ship must pass through, the master shall be obliged to take all necessary measures to prevent capture of the ship, of the persons on board, of cargoes, properties or documents.

Representative Powers of the Master
Art. 95. (1) The master of the ship shall be a representative of the shipowner and of the owners of the cargo in respect of the dealings required by the needs of the ship, the cargo or the freight.
(2) The master, as a representative of the shipowner and the owners of the cargo, may lay claims and answer claims, related to the ship, the cargo or the freight, if there are no other representatives of the shipowner or of the owners of the cargo at that place.
(3) Any restriction of the powers of the master by the shipowner or the owner of the cargo shall have legal effect in the relations between these persons and the master, but in respect of third persons – only if these restrictions were known to them.

Capacities of the Master in Case of Urgent Need of Money
Art. 96. (1) The master of a ship, which during a course encounters urgent need of money resources for repairing the ship, for filling her equipment, for maintenance of the crew and, generally, for continuance of the sailing, shall have the right, if there is no time available to wait for the orders of the shipowner,:
a) to sell the unnecessary ship equipment except the special facilities;
b) to sell the unnecessary part of the food supplies;
c) to sell a part of the cargo or the whole cargo.
(2) The master shall be obliged to choose such a way of raising resources for continuance of the sailing, causing least damages to the shipowner and the owners of the cargo.

Capacities of the Master in Case of Supply of Supplies
Art. 97. (1) (amend. and suppl. - SG 113/02) In case that the food supplies, including the emergency supply, are finished in the open sea or at a berth on a river, distant from any populated place in ice navigation conditions, the master of the ship shall have the right to seize the necessary amount of provisions from those at disposal of particular persons or to seize a part of the cargo, which may be used as food.
(2) The amount of the provisions or cargo, seized in that manner, shall be paid by the shipowner or by the persons, who have obtained the provisions, if they are not part of the crew staff and if, according to the carriage contract, their supporting on the ship is not included in the carriage price.

Duty for Rendering Help
Art. 98. (1) (amend. - SG 113/02) The master of the ship shall be obliged, at the time of sailing a river or a sea, to render help to people in danger and to ships in distress, if not exposing in that way the ship, the crew and the passengers to serious danger.
(2) The shipowner shall not be responsible for infringement of the provisions of the previous Paragraph.

Ship's Council
Art. 99. (1) In case of danger for the passengers, the ship and the cargo the master may summon at his discretion a Ship's Council including the members of the crew.
(2) The Ship's Council may not restrict the rights of the master. The decision of the master shall be peremptory, even if contradicting to the opinion of the Ship's Council.

Duties of the Master in Case of Danger on the Ship
Art. 100. (1) If, in the opinion of the master, the ship is threatened by inevitable destruction, the master shall be obliged to take all possible measures for saving the passengers, after which he shall allow the crew of the ship to leave the ship.
(2) The master shall be the last to leave the ship, taking all necessary measures for saving the ship, engine room and radiotelegraph log books, the maps of the course, the documents, the valuables and the ready cash.

Medical Care
Art. 100a. (new – SG 113/02) (1) The shipowner shall ensure medical care, medicines, medical equipment and materials on board the ship according to the type of the ship, the number of the crew and the passengers and the duration of the sail.
(2) (amend. - SG 87/05; amend. - SG 85/10) The requirements for carrying out the medical care on the ship shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications together with the Minister of Health.
(3) The master of the ship or a person authorized by him shall bare responsibility of performing the requirements for medical care and for the availability of medicinal products and medicinal Art.s on board the ship.
(4) The master shall be obliged to take all necessary and possible measures for ensuring medical care in case of emergency.

Inspection of the Labour and Rest Conditions
Art. 100b. (new – SG 113/02) (1) After receiving a written signal or appeal the Executive Agency "Maritime Administration" shall be obliged to perform an inspection of the living and labour conditions, the terms of work and rest of the crew on a ship, located in a Bulgarian port.
(2) Upon establishing infringements after performance of an inspection under Para 1 the Executive Agency "Maritime Administration" shall issue compulsory directions on their correction, addressed to the master of the ship. The Executive Agency "Maritime Administration" may prohibit the ship from leaving the port before correcting the deficiencies, notifying the administration of the country of the flag thereof.
(3) (amend. - SG 87/05; amend. - SG 85/10) The conditions and order of performing the inspection under Para 1 shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications.

Chapter six.
CONTRACT OF CARRIAGE OF CARGOES (TITLE AMEND. - SG 113/02)
Section I.
General Provision; Carriage Documents
Basic Characteristics
Art. 101. (1) (amend. - SG 113/02) With a contract of carriage of cargoes the carrier shall take the obligation against certain freight (carriage price) to transport by a ship to a particular port (location) a cargo, which was provided or shall be provided to him by the shipper, and to deliver this cargo to the consignee or a person authorized by him.
(2) (revoked – SG 113/02)

Applicability to the Cabotage Carriage
Art. 102. (1) (amend. - SG 113/02) The provision of this Chapter shall apply also to coastwise (cabotage) carriage of cargoes, unless otherwise provided by this Code or special provisions.
(2) (amend. - SG 113/02) The provisions of this Chapter shall not apply to carriage of postal consignments.

Proving the Contracts
Art. 103. (amend. - SG 113/02) The formation and contents of the contracts of carriage of cargoes may be proved by charters, bills of lading and other written evidence.

Charter Carriage
Art. 104. (corr. - SG 58/70) (1) The contracts referred to in Art. 101 may be formed for carriage of cargoes, which shall be carried out by the carrier in an entire ship or in a particular part of her loading space or in particular premises of the ship.
(2) In the aforementioned cases the parties shall agree whether the carriage shall be carried out for one or some particular voyages.
(3) In case of carriage of bulk cargoes the parties may use templates of charters when settling their relations.

Carriage of Separate Consignments
Art. 105. (1) (corr. - SG 58/70) The contracts referred to in Art. 101 may be formed also for separate consignments, single or batch, determined by numbers, dimensions and weight.
(2) The parties may stipulate in a single contract carriage of multiple consecutive consignments within specified terms, when the carrier maintains a regular line to the destination (subscription carriage).

Contents of the Charters
Art. 106. The charter shall contain the names of the parties and the amount of freight, indication of the ship and the cargo, the place of loading and the destination or the direction of the ship. Other conditions and terms may be also included in the contract upon agreement of the parties. The contract shall be signed by the shipper and the carrier or their proxies.

Effect of the Charter in Respect of Persons
Art. 107. (1) (amend. - SG 113/02) The carriage contract (by charter) shall regulate the relations between the shipper and the carrier.
(2) The stipulations of the contract (the charter) shall have effect for the consignees, if the bills of lading explicitly reproduce them or explicitly refer to the document, in which the are stated.

Conditions for Issuing a Bill of Lading
Art. 108. (1) After receiving the cargo the carrier shall issue the shipper a bill of lading.
(2) If the shipper has loaded on the ship cargoes for several consignees or different cargoes or batches for the same consignee, the carrier shall be obliged to issue him separate bills of lading for each consignment or batch.
(3) If before loading the consignments on the ship the carrier has issued the shipper a bill of lading for receiving them for carriage, after loading them he shall be obliged to issue a bill of lading for the cargoes received on the ship against return of the bill of lading issued in advance.
(4) In the cases referred to in Para 3 the carrier, with the consent of the shipper, instead of issuing a new bill of lading, may make a note on the bill of lading already issued, that the cargoes received for carriage are loaded on the ship, by noting the name of the ship and the date of loading.

Carter's Note
Art. 109. (1) The carrier shall issue the bill of lading for the cargo, received on the ship, on the basis of a carter's note, filed before loading and signed by the shipper or a person authorized by him (loader).
(2) This note shall contain data of the type and nature of the cargoes, their quantity and condition, the number of consignments (parcels), marks (signs), placed thereon, and confirmation that all export, carriage and import requirements are met.
(3) The shipper shall be liable before the carrier for all consequences of the wrong, incorrect, or incomplete indication of the data on the note.

Contents of the Bill of Lading
Art. 110. The bill of lading shall contain:
1. name of the carrier;
2. name of the shipper;
3. name of the consignee, note of the destination and indication, whether the bill of lading is negotiable, named or to bearer. If there is no stipulation on the type of the bill of lading or it is negotiable, without indication of the consignee, it shall be treated as issued to the order of the shipper;
4. name of the ship;
5. name of the cargo, number of parcels, weight of the cargo and of the separate consignments, volume and dimensions;
6. information of the apparent condition of the cargo and its packing;
7. marks or signs, necessary for establishing the identity of the cargo, provided by the shipper in writing before the beginning of loading, if they were inscribed or otherwise attached to particular parcels of the cargo or its packing;
8. clause on the freight and any other claims in favour of the carrier, as well as noting, whether they are entirely paid or must be paid in compliance with the conditions, laid down in the charter or other documents;
9. place of loading;
10. place of unloading;
11. number of issued copies of the bill of lading;
12. date and place of issuing the bill of lading;
13. signature of the carrier, the master of the ship or another representative of the carrier.

Remarks; Data Entry Refusal
Art. 111. (1) The carrier shall have the right to enter a remark on the bill of lading, if the apparent condition of the cargo or its packing bring reasonable grounds for doubt.
(2) The carrier shall have the right to refuse to enter in the bill of lading the data declared to him by the shipper regarding the quantity, the dimensions, the volume and the distinctive properties of the cargo, if he has reasonable grounds to consider this data not corresponding to the actual condition of the cargo at the time of loading, or he is not able to check it.
(3) The carrier may refuse to enter in the bill of lading data regarding the marks and signs on the cargo, if they are not placed on separate parcels of the cargo or on their package in a way to be read or distinguished under normal conditions to the end of the voyage.
(4) If the cargo was delivered for carriage in a package, the carrier may enter in the bill of lading a remark, that the contents of the parcels are unknown to him.
(5) When the cargo is received for carriage in bulk or liquid and the data related to it is not verified at the loading, the carrier may note these circumstances on the bill of lading, if he was not able to perform a check.

Assumption of the Date of Issue
Art. 112. (1) If the date of issue is not explicitly stated on the bill of lading, it shall be deemed to be the date, on which the loading of the consignment on the ship was made.
(2) If the number of the copies is not explicitly stated on the bill of lading, it shall be deemed that only one original copy was issued to the shipper.

Sets, Original and Duplicates
Art. 113. (1) Upon request by the shipper, the carrier shall issue the bill of lading in more than one original copies with the same contents and duplicates of the bill of lading.
(2) A duplicate of the bill of lading shall stay on the ship together with the cargo.
(3) (amend. - SG 113/02) In case of coastwise carriage on inland waterways the carrier shall issue a bill of lading or a waybill to the shipper.

Importance of Sets
Art. 114. (1) When more than one original copies of the bill of lading are issued, the shipper may exercise his right to request unloading and returning of the consignments to the port of departure, delivery of the consignments in intermediate port or to another consignee, only if he presents all issued original copies.
(2) The provision of the previous Paragraph shall apply also to the cases, when the same right is exercised by the acquirer of the bill of lading.
(3) If the carrier delivers the cargo to the consignee, legitimate according to one of the original copies of the bill of lading, the rest of the original copies shall cease to have effect.

Types of Bills of Lading
Art. 115. The bill of lading may be issued:
a) to the name of a particular consignee (named bill of lading);
b) to the order of the stated consignee or of the shipper (order bill of lading) and
c) to a bearer.

Effect of the Bill of Lading regarding the Persons
Art. 116. The bill of lading shall have effect in the relations between the carrier and the legitimate consignee of the cargo.

Probative Effect of the Bill of Lading
Art. 117. (1) The bill of lading shall serve as evidence, that the cargo noted thereon was received for carriage and is already present on the ship.
(2) After the issue of the bill of lading the cargo noted thereon shall be deemed compliant in terms of type, quantity and apparent condition with the data, which the same bill of lading contains.

Effect of the Bill of Lading as a Negotiable Instrument
Art. 118. (1) The bill of lading shall legitimate the consignee, indicated therein or eligible according to it, to dispose of the cargo, including to pledge it for securing letters of credit, as well as to request the cargo in question to be delivered to him.
(2) Handing over the bill of lading shall have the effect of delivering the cargo in the relations between the eligible consignee and the person to whom he has transferred it.
(3) The consignee, eligible under the bill of lading, may request the delivery of the cargo short of the port of destination under the conditions referred to in Art. 114.
(4) The pledge on the bill of lading, imposed by creditors of the eligible consignee, shall have the effect of a pledge on the cargo itself.

Transferring Bills of Lading
Art. 119. (1) The named bill of lading may be transferred by the consignee according to the rules of assigning claims.
(2) The order bill of lading may be transferred by full or blank indorsement. The transferee to the blank indorsement may transfer the bill of lading by handing it over or by a new indorsement. The transferee of an order bill of lading according to an indorsement may not exercise regressing rights against the indorser.
(3) The bearer bill of lading shall be transferred by handing it over.

Through Bill of Lading
Art. 120. (1) (amend. - SG 113/02) The carrier taking a duty of carriage, in which other carriers by sea, river, railway, vehicles or aircrafts are going to participate, and if requested by the shipper, shall issue a bill of lading for the entire carriage of the cargo to its final destination (through bill of lading).
(2) The ports and the places of transshipment shall be noted in such a bill of lading, as well as the other kinds of carriage, which shall be used to the destination. The first carrier shall take the duty to form or to provide the formation of the contracts with the following carriers.
(3) The carrier issuing the through bill of lading shall be jointly liable with the following carriers for the performance of the obligations of the entire carriage, until the delivery of the cargo to the final consignee. Each of the rest carriers shall be liable for his section of the carriage jointly with the first carrier.
(4) (suppl. - SG 113/02) In respect of the sections of the entire carriage, which do not represent carriage on sea or river, the legal provisions for the carriage kind in question shall apply.
(5) If it is not possible to determine on which section of the entire carriage destruction or damages of the cargo have occurred, which have been established at the final destination, the consignee may claim indemnity also from the last carrier. The last carrier shall be obliged to exercise also the rights of the preceding carriers at the delivery of the cargo, known to him.
(6) The carrier participating in carriage according to a through bill of lading, if he pays the indemnity to the consignee, shall have the right to claim the respective parts of the entire carriage price from the rest of the carriers.
(7) Any carrier, issuing a through bill of lading, may restrict his liability therein only to the route of performing the carriage. This fact does not free the carrier of the duty to provide due care for the correct performance of the further carriage.

Written Delivery Orders
Art. 121. (1) The person, eligible to dispose of the cargo referred to in the bill of lading, may, if stipulated in the carriage contract, request by the carrier the issue of written orders to the master for delivery of separate parts of the cargo (delivery orders) to consignees noted therein.
(2) In the written order, issued by him according to the aforementioned request, the carrier shall indicate in the bill of lading the type, the quantity and the quality of the cargoes referred to in each of the orders. The written orders shall be signed by the carrier and the person who has issued them.
(3) When the entire cargo, noted in the bill of lading, is distributed according to the delivery orders, the original bill of lading or the original copies of the bill of lading shall be kept by the carrier. Otherwise the issue of orders for delivering parts of the cargo shall be noted on the bills of lading.
(4) The written orders for delivering parts of the cargo shall be negotiable instruments. The consignments indicated thereon may be transferred by transferring the very delivery orders.

Multiple Bills of Lading in a Single Charter
Art. 122. The shipper to the charter carriage contract may load and ship, even in a single voyage, cargoes for different consignees, in one and the same or in different ports, stipulated in the contract. For the cargo for each consignee a separate bill of lading shall be issued.

Assignment of the Rights in Charter Carriage
Art. 123. The shipper to a charter carriage may, without the consent of the carrier, assign his rights fully or partially to any other person under a charter carriage contract. He shall remain, however, jointly liable with the person in question before the carrier for the performance of the charter carriage contract.

Providing Separate Consignments for Carriage
Art. 124. (1) If subject of the carriage contract are separate objects or consignments, the shipper shall provide them for carriage at the stipulated or the usual time.
(2) (amend. - SG 113/02) If the separate cargoes or consignments shall be provided in a package, the shipper shall place them in a package suitable for carriage. 
(3) Loading and discharging separate objects or consignments on the ship for liner carriage, as well as their arrangement and fastening shall be performed by the carrier, unless otherwise stipulated.
(4) The provisions regarding the laytime and the reversible laytime and regarding the demurrage and dispatch payment shall not apply to liner carriage, unless otherwise stipulated.

Substitution of Ships
Art. 125. (1) In case of carriage in entire ship, part of a ship or entire hold, the carrier may perform the loading onto another ship only with the consent of the shipper.
(2) In case of carriage of separate consignments the carrier may substitute the specified ship for another equivalent ship, if no explicit prohibition is stipulated in the contract. He shall be obliged to provide the substitute ship within the stipulated term and to notify the shipper thereof.
(3) If the carrier maintains regular lines to particular destinations, he may load the separate cargoes and consignments, received for carriage, on each of his liner ships, unless the nature of the carriage demands it to be held by a ship, having the necessary equipment, refrigerating installations, etc.

Seaworthiness of the Ship
Art. 126. (1) Before the commencement of the voyage the carrier shall be obliged to make the ship seaworthy with regard to the nature of the cargo and the forthcoming sailing, to equip her duly, to secure a crew and to supply with anything necessary, as well as to place the holds, the refrigerating and the other compartments in good condition, suitable for the receipt, carriage and storage of the cargoes in question. Any stipulations, contradicting to this provision, shall have no effect.
(2) The carrier shall not be held liable, if he proves that the non-seaworthiness of the ship was caused by deficiencies, which could not be found despite the due care provided by him (latent deficiencies).
(3) The carrier shall be obliged to provide the ship suitable for loading at the stipulated or the usual place and on the stipulated time and to place her at disposal of the shipper during the stipulated term for performing the loading.
(4) In case of charter carriage contracts the carrier shall be obliged, according to the instruction of the shipper, to bring the ship to the determined place, if it is safe and accessible for berthing and for performance of the loading, as well as for the ship leaving with the cargo.
(5) If there are several shippers and they could not agree for the place, to which the ship shall be provided for loading, the carrier shall make the ship available at the usually accepted place.

Sending Notification by the Carrier
Art. 127. (1) The carrier shall be obliged to notify the shipper in writing for the provision of the ship at the place of loading, ready for commencement of the loading. If the shipper has assigned another party to perform the loading and has notified the carrier thereof in advance, the notification shall be sent to the loader.
(2) Sending a notice to the shipper for providing the ship for loading shall be considered void, if not true at the moment of its receipt, and the carrier shall be due compensation for damages caused to the shipper.

Providing Less Loading Space
Art. 128. (amend. - SG 113/02) If the ship, part of a ship or ship compartment provided has less area or space for loading than stipulated, the shipper may request corresponding reduction of the freight and of the compensation for damages incurred therefrom, but no more than the freight for the non-loaded cargo, and if the discrepancy is considerable – also to cancel the contract.

Providing the Consignments – Package and Signs
Art. 129. (1) The shipper shall be obliged to provide the cargo on the ship in proper package, suitable to endure the carriage and the overloading and to protect the cargo.
(2) He shall be obliged to place marks (signs) on the cargoes, capable to stay to the end of the carriage.
(3) If the cargoes are dangerous or special care is required for them, the shipper shall indicate that on the cargoes themselves.

Documents, Accompanying the Cargo
Art. 130. (1) The shipper shall be obliged to hand over in due time the documents to the carrier, which are required by the port, customs, sanitary or other provisions regarding the type and the characteristics of the cargo.
(2) He shall be liable before the carrier for the damages caused due to the late handing or handing insufficient, incomplete or incorrect documents for the cargo.
(3) The carrier shall not be obliged to check the veracity and the completeness of the documents, handed over to him by the shipper.

Loading Quantity
Art. 131. (1) If the shipper does not provide the cargo for carriage within the term stipulated, the carrier shall have the right to receive the entire freight, unless stipulated otherwise.
(2) If the shipper provides for loading on the ship less cargoes than the quantity stipulated in the contract, he shall not be freed from the obligation to pay the entire freight for the ship, for the stipulated part thereof or for the stipulated ship compartment, unless stipulated otherwise.
(3) If the shipper loads more consignments than the stipulated quantity, the carrier shall have the right to remove the excess from the ship at the expense of the shipper, as well as to claim compensation from him for the incurred damages.
(4) If the carrier leaves the excessing quantities on the ship or in the compartments of the ship, he shall have the right to claim the corresponding increase of the freight.

Keeping the Entire Freight
Art. 132. In case of single (separate) consignments the carrier shall retain his right in the entire freight, if the shipper does not provide them within the term stipulated for carriage fully or partially.

Replacement of the Cargo in Charter Carriage
Art. 133. (1) In cases of carriage contracts by an entire ship, part of a ship or in particular ship compartments the shipper may provide other cargoes for carriage, different in type from those stipulated in the contract, unless the situation of the carrier is worsened in that way, the loading term is extended, the ship or her facilities, as well as the cargoes of other shippers are exposed to danger.
(2) In case of replacement of cargoes the shipper may not claim reduction of the freight, although the freight for the carriage of the cargoes, provided in place of those stipulated, is lower.
(3) If the replacement leads to higher freight, the shipper shall be obliged to pay the difference.

Cargoes of Other Shippers
Art. 134. If the carriage contract concerns an entire ship or particular compartments therein, the carrier shall not receive for carriage cargoes of other shippers in them, even if the cargoes of the first shipper do not take the stipulated entire area or space of the ship. Upon request by the shipper, he shall be obliged to discharge the cargoes, belonging to other shippers, before the departure of the ship.

Refusal to Receive Cargoes
Art. 135. (1) The carrier shall have the right to refuse to receive, and, if found to be loaded, to discharge from the ship such consignments, which are prohibited for export from the country, where the loading takes place, or for import in the country, where the destination is located, as well as any goods, subject to smuggling.
(2) The carrier shall have the right to refuse to receive, and if loaded, to discharge from the ship easily inflammable, explosive and other dangerous cargoes, if they have been noted in the statement of the shipper with incorrect or incomplete name.
(3) The above provisions shall apply also to any types of cargoes, loaded on the ship, regardless of the shipper.
(4) In the above cases the discharging expenses, the compensation for delay and the risk shall remain on behalf of the shipper. Besides that, the shipper shall bear liability also under Art. 182.

Assistance by the Carrier in Loading
Art. 136. (1) The loading on the ship shall be made according to a cargo plan, drawn up by the carrier.
(2) Unless otherwise stipulated in the contract, the shipper shall provide the cargo along the board of the ship at his own expense with a view to her proper loading.
(3) The carrier shall be obliged to provide the due care and to render assistance to the shipper or the loader in order to achieve proper arrangement and fastening of the cargoes, the necessary separation from each other, providing the necessary dunnage, bulkhead, etc.
(4) The partitioning materials and the materials for securing shall be provided by the party, specified in the contract.

Areas and Compartments, Excluded from Loading
Art. 137. (1) In case of carriage by an entire ship or a part of a ship the shipper shall not place the cargoes in the cabins, the premises for the ship crew and for storage of the ship supply, the ship equipment and the fuel.
(2) The master may not order loading of the consignments by the shipper on the deck of the ship, unless the shipper (the loader) gives his written consent for that. Exceptions shall be allowed for those types of loads, which may be placed on the deck according to the rules in force. If a bill of lading shall be issued for the carriage of cargoes on the deck, the consent in question shall be noted on it.

Carriage in Sealed Compartments
Art. 138. (amend. - SG 41/01) (1) Upon consent of the shipper and the carrier the cargoes may be placed and transported in compartments, sealed by the shipper.
(2) (revoked – SG 113/02)

Mate's Receipts
Art. 139. The shipper may request from the carrier, in the course of loading, to issue him receipts (mate's receipts) for the cargo batches received on the ship.

Loading Term (Laytime)
Art. 140. (1) The term, in the course of which the loading of the entire quantity on the ship (the laytime) shall be made, shall be specified in the contract.
(2) If the contract does not contain explicit stipulations, the loading shall be made within the terms, established by the custom in the port.
(3) Unless otherwise stipulated or determined, the term of loading shall commence from the day, which follows the sending of the notice for loading readiness of the ship considering for its calculation the working days and hours of the particular port.
(4) The term, in which the loading does not commence or is interrupted for reasons of carrier's responsibility, or due to force majeure or atmospheric conditions, threatening the cargo or the correctness or safety of loading, shall be deducted from the loading term.

Departure of the Ship Ahead of Time
Art. 141. In carriage by entire ship the shipper may order the carrier that the ship shall depart even before the expiration of the loading term and the entire cargo not loaded on board. The carrier shall preserve his right in the entire freight.

Additional Loading Term
Art. 142. (1) The parties may stipulate additional loading term after expiration of the initial one (reversible laytime), by specifying also the amount of payment due to the late loading (demurrage).
(2) For loading ahead of time a relevant remuneration (dispatch) may be stipulated in favour of the shipper.
(3) If the parties have not explicitly determined the duration of the additional term, the amount of the demurrage or of the dispatch, the provisions or the custom in effect at the port of loading shall apply.
(4) If there are no such provisions and customs, the amount of demurrage shall be determined according to the expenses for maintenance of the ship and the crew for the entire time of delay, and the amount of dispatch shall amount to the half of the payment in question before the delay.

Loading after Expiration of the Additional Time
Art. 143. (1) When the contract is for carriage in a part of the ship or in particular ship compartment, the shipper may refuse to receive the cargo, which was not provided within the term for loading in the specified additional term, and to depart. In such a case the carrier shall be entitled to claim payment of the entire freight.
(2) However, when the contract if for carriage by an entire ship, the carrier shall not be entitled to refuse to receive cargoes, provided for loading, before expiration of the laytime or the reversible laytime, when the contract contains such a clause, even if the stowage of the cargoes in question on the ship delays him after the specified term. In such a case, however, the shipper shall be obliged to compensate also the damages incurred by the carrier due to the delay of the ship beyond the reversible laytime.

Section II.
Contract Performance – Carriage and Delivery of the Cargo
Cargo Storage Care
Art. 144. (1) The carrier shall be obliged to take care of the cargo from its receipt to its delivery to the consignee, as well as of the interests of all persons regarding the cargo.
(2) The shipper or a person authorized by him shall take care of feeding and watering transported animals, unless explicitly otherwise stipulated.
(3) If the cargoes received for carriage need special care or special supervision in terms of their nature, including also special temperature, which is specified in the contract and noted on the cargo units, the carrier shall provide also this special care. In such cases the carrier shall be entitled to freight increase.

Term and Route
Art. 145. (1) The carrier shall be obliged to perform the carriage within the stipulated terms, and if no stipulation is made – within the usually accepted terms.
(2) The deviation from the specified route due to helping and rescuing a human life, ships and cargoes on sea or due to other good reasons shall not be considered breach of the carriage contract. The carrier shall not be liable for the damages incurred therefrom.

Removal of Dangerous and Prohibited Cargoes at the Time of Carriage
Art. 146. (1) Without payment of compensation for the cargo and without losing the freight, the carrier may discharge easily inflammable, explosive and other dangerous cargoes, loaded on the ship under incorrect or false name, and he was not able to establish their dangerous nature at the time of loading in an inspection of their apparent condition. The discharging costs and the caused damages shall be at the expense of the shipper.
(2) The carrier may remove such cargoes also in the cases, when the cargoes are placed in the ship compartments with indication of their actual properties, if during the carriage they become dangerous for the people or the other cargoes. He shall be entitled to freight proportionally to the actual distance already covered.
(3) In the cases referred to in the preceding Paragraph the carrier shall be liable for the damages, caused in relation to the carriage of dangerous cargoes, only according to the rules of the general average.
(4) The carrier may discharge from the ship dangerous for carriage cargo in any port, including cargo, the import of which is prohibited in the destination country. He shall preserve his right in the entire freight.

Obstacles to Entering a Port
Art. 147. (1) If the ship may not enter the destination port due to force majeure, including prohibition by state authorities, or for other reasons, out of the carrier's responsibility, the carrier shall immediately notify the shipper thereof or the person, entitled to dispose of the cargo, if known to him.
(2) If, in the course of a reasonable term, an order by the shipper or the person, entitled to disposition, of the way to deal with the cargo is not received, the carrier shall be entitled to discharge it at one of the ports nearby or, if he decides to be more advantageous for the shipper, to return the ship to the port of departure.
(3) (amend. - SG 113/02) If the contract concerns carriage in a part of a ship or in particular ship compartment, the carrier shall be obliged to perform the discharge in another port according to the order of the shipper. If no such order is received within a reasonable term after sending the notification by the carrier or, if the order received, according to the judgement of the carrier, made with the care of the reasonably prudent person, may not be executed without any damages to the cargoes of the other shippers, the carrier may discharge the cargo of that particular shipper in one of the closest ports to be visited, sending him a notification thereof.
(4) The shipper or the person, entitled to dispose of the cargo, shall be obliged to restore to the carrier the costs made for waiting their orders and the additional costs for the cargoes, as well as to pay the freight proportionally to the actual distance already covered.

Eligible Consignee
Art. 148. (1) The carrier shall be obliged to deliver the cargo at the port of destination to the consignee eligible according to the bill of lading.
(2) If written orders for delivery of the cargo have been issued, the carried shall be obliged to deliver to the eligible owner according to every written order the part of the cargo specified therein.
(3) If several original copies of the bill of lading were issued therefore, the carrier shall perform his obligation by delivering it to the eligible consignee to any of the original copies. All other copies shall lose their effect thereafter.
(4) If no bill of lading was issued, the cargo shall be delivered to the person, specified in the contract or in the additional order of the shipper.

Notice of Discharge Readiness of the Ship
Art. 149. (1) In case of charter carriage the carrier shall be obliged to notify the consignee, if known to him, or the person specified in the contract for the discharge readiness of the ship.
(2) If the consignee is not known to the carrier or no other person is specified in the contract, the notice shall be announced in the manner usual at the destination.

Survey by Experts before Delivery
Art. 150. (1) (amend. and suppl. - SG 113/02) The carrier, as well as the consignee shall be entitled to request survey by experts and surveyors of the condition, the quantity and the numbers of the cargo. The experts and the surveyors shall notify the carrier and the consignee of the time of performing the survey.
(2) The costs for the survey shall be paid by the party, which has made the request, and shall be at the expense of the breaching party.

Failure to Find the Consignee
Art. 151. If the ship is in position to perform the discharging and the consignee cannot be found, despite the notification sent according to the order referred to in Art. 149, the carrier may remove the cargoes from the ship or to assign the discharging to a company, performing such activities, by providing them for storage. In such cases the carrier shall notify the shipper and again the consignee, unless otherwise stipulated.

Delay of Consignee
Art. 152. (corr. - SG 58/70) (1) If the consignee has expressed readiness to receive the cargo but is late to receive it on the ship, the carrier shall be entitled to deposit the cargo for storage at the expense and risk of the consignee, notifying him thereof.
(2) If, due to delay of the consignee or due to deposit of the cargo for storage, the discharging period expires, the carrier shall be entitled to request payment of the sums due to the delay, as well as compensation for the damages incurred in excess.

Failure of Consignee to Receive the Cargo
Art. 153. (1) If the consignee refuses to receive the cargo or does not appear to receive it within the specified term, the carrier may deposit it for storage at the expense and risk of the shipper, unless otherwise stipulated.
(2) In these cases the carrier may request from the shipper to pay him the unpaid freight or the due part thereof and the other claims, arising in connection with the carriage.
(3) The shipper may receive the cargoes refused or unreceived by the consignee, by paying also the costs for their storage or dispose of them, as he finds appropriate.

Discharge Costs
Art. 154. Unless the contract or provisions and customs, effective at the port, stipulate otherwise, the costs of removing the cargo onto the quay or the place along the board shall be at the expense of the carrier, and all other costs for taking the cargo and its delivery to the consignee or for storage shall be at the expense of consignee.

Discharge Terms; Consequences of Non-observance
Art. 155. (1) (amend. - SG 113/02) The term of performing the discharge at the charter carriage shall commence after sending the notice to the consignee according to the order of Art. 149.
(2) The duration of the term for discharge and the additional term for discharge, the calculation of these terms, the amounts of payments for delay (demurrage) and the remuneration for the discharge ahead of time shall be determined according to the relevant provisions of this Code concerning the discharge.

Effect of Receipt
Art. 156. (1) If the consignee does not notify the carrier in writing of deficit (partial destruction or loss) or damages of the cargo before completion of the delivery (the receipt), it shall be presumed, until the contrary is proved, that he has received the cargo in compliance with the bill of lading (or with the written instructions on delivering parts of the cargo), and if the carriage is made without a bill of lading – in compliance with the contract.
(2) If the partial deficit or the damages cannot be discovered in the usual manner of delivery and receipt of the cargo, the consignee shall send to the carrier a written notification thereof before expiration of three days from completion of the receipt at latest.
(3) If upon receipt of the cargo its condition and quantity were established jointly with the carrier, the consignee shall preserve his right to claim compensation for partial deficit and damages even without sending the written notifications referred to in the preceding Paragraphs.
(4) The stipulations in the bill of lading, and if no such available – in the carriage contract, restricting or impeding the consignee to exercise his rights, specified in the current Art., shall have no effect.

Payments upon Receipt
Art. 157. (1) The consignee shall be obliged to pay upon receipt of the cargo the freight or the part thereof unpaid, the payments due to delay in loading, discharging and receipt (demurrage), as well as the costs, incurred by the carrier in favour of the cargo, and in case of general average – also the instalment due by him.
(2) With the consent of the carrier, the consignee may provide appropriate guarantee, instead of paying the sums referred to in Para 1.

Consequences of Non-payment
Art. 158. The carrier shall have a lien on the cargo for payment of the sums referred to in Art. 157 or until providing a relevant guarantee.

Deposit for Storage
Art. 159. (1) (amend. - SG 113/02) If the consignee refuses to receive or is late to pay the carrier the sums referred to in Art. 157, the carrier may deposit the cargo for storage at the expense and risk of the consignee.
(2) (amend. - SG 113/02) If the ship is late due to depositing the cargo for storage, the carrier may claim for the time of the delay also the sums, provided for delay of the discharge.
(3) (amend. - SG 113/02) The carrier shall immediately notify the shipper of depositing the cargo for storage.
(4) (amend. - SG 113/02) If the carriage is carried out by an entire ship, the carrier shall notify the shipper of the consignee failing to pay the due sums and of the failure to receive the cargo. In such a case he shall discharge the ship and shall deposit the cargo for storage, unless other orders of the shipper are received before the discharge.
(5) (amend. - SG 113/02) If before expiration of one month from the day of the ship arriving at the destination the cargo, deposited for storage, is not collected by the consignee and the due sums referred to in Art. 157 are not paid by him, the carrier shall have the right to sell it.
(6) (amend. - SG 113/02) The carrier may sell such cargo even before expiration of the one month term referred to in the preceding Paragraph, if it is perishable or its storage costs exceed the value of the cargo.
(7) (amend. - SG 41/01; amend. - SG 113/02; amend. - SG 87/05; amend. - SG 85/10) The Minister of Transport, Information Technologies and Communications and the Minister of Justice shall determine in an ordinance the terms for storage of cargoes until they are received and paid by the consignee, as well as the order for selling such cargoes.

Right of Preference
Art. 160. (1) The carrier shall have a right of preference in the value of the cargoes, sold according to the order of Art. 159, in claims for freight or a part thereof, and for the rest of his claims related to the cargo or arising of delays in loading and discharge.
(2) The provision above shall apply also to the claims of the preceding carriers in the carriage of the same cargo.
(3) A carrier, who delivers the cargo to the consignee without receiving payment of the sums form him, may claim them under the general order.

Section III.
Amendment and Termination of the Contract
Return of Cargo Before Departure
Art. 161. (1) The shipper may order the carrier in writing at the place of loading, before departure of the ship, to redeliver to him the entire cargo or a part thereof. If there is a bill of lading issued, the shipper may exercise this right returning all copies of the bill of lading to the carrier.
(2) The costs on discharging and redelivery, as well as the consequences of the delayed departure of the ship shall be at the expense of the shipper.
(3) Unless otherwise specified in the contract, the carrier shall reserve his right in the freight in the following amounts:
a) the half of the entire freight, if the order of the shipper was made before beginning of the laytime at the place of loading, regardless of whether the ship has arrived therein;
b) the entire freight, if the order of the shipper was made after the term referred to in letter "a" and the carriage contract was concluded for a single voyage, and if this happens after expiration of the laytime – also demurrage;
c) the entire freight for the first voyage, together with the half of the freight for the rest of the voyages, if the contract was concluded for several voyages.

Orders by the Shipper After Departure
Art. 162. (1) The shipper may order the carrier in writing, also after departure of the ship, to discharge and deliver the cargo or a part of the cargo to a specified intermediate port on the way to the destination or to a port, where the ship has entered pursuant to a necessity arisen, or to another consignee at the destination. If there is a bill of lading issued, the carrier shall be obliged to perform this order, provided that the shipper returns to him all copies of the bill of lading or provides him a suitable guarantee with his consent.
(2) Unless otherwise specified in the contract, the carrier shall reserve his right in the initially stipulated freight. All additional costs, arising in relation to performance of the orders referred to in Para 1, shall be at the expense of the shipper.
(3) The carrier shall not be obliged to perform the orders of the shipper if changing the route is required, which would considerably delay the carriage of cargoes of other shippers in the same or subsequent voyage, or threatens the safety of the ship.

Orders by the Consignee
Art. 163. (1) The consignee may order the carrier to discharge and deliver him the cargo or a part of the cargo in a specified intermediate port on the way to the destination, as well as to deliver it in an intermediate port or at the destination to another consignee, returning to the carrier all copies of the bill of lading or, with the consent of the carrier, providing him a suitable guarantee.
(2) In the cases referred to in Para 3 of Art. 162 the carrier may refuse to perform the order of the consignee.
(3) If the carriage is held without a bill of lading, the consignee may order the carrier to deliver the cargo to another consignee, only after receiving the notice for discharge readiness of the ship.
(4) In the cases referred to in the preceding Paragraphs the carrier shall reserve his claim for the initially stipulated freight and for the additional expenses.

Retreat by the Carrier
Art. 164. (1) (amend. - SG 113/02) If the value of the cargo provided for carriage does not cover the freight and the other claims of the carrier in relation to the cargo and if the shipper does not pay the entire cargo in advance or does not provide suitable guarantee before departure of the ship, the carrier may cancel the contract before start of the carriage.
(2) (amend. - SG 113/02) If the contract is cancelled by him, he shall be entitled to claim a half of the specified freight, the delay claims, if available, and other claims related to the cargo. The discharge of the cargo from the ship shall be made at the expense of the shipper.

Retreat by the Shipper in Case of Failure to Present the Ship
Art. 165. (1) (amend. - SG 113/02) The shipper may cancel the carriage contract by an entire ship, part of a ship or a ship compartment, if the carrier does not present the ship at the port of loading before expiration of the specified term, or is late to accept the cargo on the ship or to dispatch the loaded vessel.
(2) In the above cases the shipper shall be entitled to claim compensation from the carrier in the amount of the freight at most, unless stipulated otherwise.
(3) The provision of Paragraph One shall not apply, if the ship arrives at the port on time, but cannot be moored at the place stipulated or determined by the shipper because of congestion at the ports or other reasons without fault of the carrier.

Retreat by the Shipper in Case of Other Carriage
Art. 166. (1) (amend. - SG 113/02) If the contract stipulates carriage by a part of a ship, a ship compartment or of separate consignments, the shipper may cancel the contract before departure of the ship, paying the carrier the entire freight, the delay sums, if applicable, and the discharge costs.
(2) The shipper may not exercise his right referred to in the preceding Paragraph, if the discharge of the cargo accepted on the ship would cause considerable delay of the departure of the ship.

Retreat during Carriage
Art. 167. (1) (amend. - SG 113/02) Each of the parties to the contract may cancel it after the beginning of the voyage, in case where circumstances have arisen, impeding continually or for unforeseen period the continuance of the carriage, and especially in cases of:
1. war, which may place the ship or the cargo in danger of capturing;
2. blockade of the destination;
3. arrest of the ship according to orders of the authorities, because of reasons with no regard to the shipper or the carrier;
4. seizure of the ship for state purposes;
5. prohibition of import at the destination, if it concerns cargoes, which the transported cargo pertains to.
(2) In the above cases the freight shall be paid according to the actual distance covered.
(3) (amend. - SG 113/02) Arrest of the ship for circumstances with no fault of either of the parties, as well as the prohibition of the export or the import shall not form grounds for cancelling the contract without payment of compensation, if the delay in question is brief or the delay is interrupted before the statement for avoiding the contract.
(4) The discharge costs shall be at the expense of the shipper.

Retreat before Departure
Art. 168. (1) (amend. - SG 113/02) Each of the parties to the carriage contract may cancel it, without payment of compensation to the other one, if before departure of the ship any of the circumstances specified in Art. 167 occurs.
(2) If the arrest of the ship or the prohibition of the export (import) are of brief nature or cease before the written statement of avoiding the contract, the latter may not be terminated because of the avoidance by any of the parties.
(3) When the contract is terminated because of avoidance of one of the parties referred to in Para 1, the discharge costs shall be at the expense of the shipper.

Termination of the Contract ex Lege
Art. 169. (1) The carriage contract is terminated ex lege (without avoidance statements by any of the parties), if before departure of the ship from the place of loading and without fault of any of the parties:
1. the ship is destroyed or is declared unsuitable for further travelling;
2. the ship is prized or confiscated;
3. the individually specified cargo is destroyed;
4. the cargo, specified by generic properties, is destroyed after being placed on the ship or is received for loading and placed along of the ship. The shipper may preserve the effect of the contract, if in place of the destroyed cargo, specified in generic properties, addresses an immediate statement to the shipper, that he is ready to provide for carriage other cargo of the same kind before expiration of the passing laytime.
(2) The carriage contract shall be terminated ex lege in the above cases also when any of them takes place during the voyage. The carrier shall reserve his right in a part of the freight, proportionally to the actual distance covered, taking in consideration the quantity of the saved and delivered cargo, unless otherwise specified in the contract.

Section IV.
Liability of the Carrier
Liability According to the Rules on Sea Carriage
Art. 170. (1) The shipper shall be liable for the damages in cases of partial or total deficit and caused by cargoes damaging from the moment of receipt for carriage to the moment of delivery to the consignee.
(2) Until proved otherwise, it shall be presumed that the destruction, deficit or damaging of the cargoes, which have occurred after receipt for carriage, are caused due to carrier's fault.

Liability for Cargoes in Sealed Compartments or Proper Package
Art. 171. (1) The carrier shall not be liable for total or partial deficit and damage of cargoes, if the latter have been placed and have arrived at the destination in proper compartments, with intact seals, placed by the shipper.
(2) The carrier shall not be liable for total or partial deficit and damage of cargoes, discharged from ships in entire and proper package, including cases, sealed containers, etc., without traces of opening during carriage.
(3) The consignee may claim compensation from the carrier in the above cases, if he proves that the deficit or damage was caused due to the fault of the carrier.

Damages in Case of Misrepresented Cargoes
Art. 172. The carrier shall not be liable for deficit or damage of a cargo, if related to false data, provided by the shipper or the loader, regarding the nature of the consignments, the fitness of wrapping or the value of the cargo, or regarding the quantity of the separate cargo units.

Damages Due to Navigational and Merchant Negligence
Art. 173. (1) The carrier shall not be liable for damages and losses, if he proves, that the total or partial deficit or the damage of the cargo arises of action or omission of the master, of other members of the crew, of the pilot or of other persons, employed by the carrier with regard to the navigation or management of the ship (navigational negligence).
(2) The carrier shall be liable according to the provisions of this Code for total or partial deficit or for damage of the cargo, arising of actions or omissions of the aforementioned persons at the time or receiving, loading, preservation, discharging or delivery of the cargo (merchant negligence).

Grounds for Exclusion of Liability
Art. 174. (1) The carrier shall be exempt of liability for damages and losses, if he proves that the total or partial deficit or the damage of cargo arise of:
1. force majeure;
2. danger and accidental events on sea or other navigable waters;
3. fire, caused without his fault;
4. orders and other actions of the bodies of state authority, including arrest of the ship, levying a distraint, placement in quarantine;
5. military activities, including undeclared war, arising of riots, social disorders, etc.;
6. strikes, lockouts and other circumstances, leading to complete or partial cessation or limiting the work;
7. salvage or salvage attempt of a human life, ships or cargoes on sea;
8. action or omission of the shipper or the consignee or of the persons they are responsible for;
9. latent deficiencies of the cargo, inherent properties thereof, including wastage;
10. insufficiency of package;
11. insufficiency, inaccuracy or indistinctness of the signs (marks) on the cargo;
12. latent deficiencies in the ship or her equipment, if the carrier was not able to find them, although he has exercised the due care in the preparation of the ship, intended for performing carriage.
(2) The carrier shall not be liable for total or partial deficit and for damage also when they result of other reasons, for arising of which he, or the persons he is responsible for, have no fault.
(3) The carrier shall not be liable for deficit and damage of the cargoes, placed on the deck, if the arise in relation to this way of carriage.

Dangerous Cargoes (title amend. - SG 113/02)
Art. 175. (1) The carrier shall not be liable for total or partial deficit and damage of dangerous cargoes also, when the shipper, upon handing over for carriage or upon loading on the ship, inaccurately or incompletely has negligently indicated their properties.
(2) (revoked – SG 113/02)

Obligations in Handling and Carriage of Dangerous Cargoes
Art. 175a. (new – SG 113/02) (1) The master of the ship shall be obliged to notify the captain of the port of the type and location of dangerous or harmful to human and environment cargoes, transported, loaded or discharged by him.
(2) (amend. - SG 87/05; amend. - SG 85/10) The conditions and order of handling and carriage of dangerous cargoes shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications.

Requirements to the Ships
Art. 175b. (new – SG 113/02; amend. - SG 87/05; amend. - SG 85/10) The minimum requirements to the ships, sailing to and from ports of the Republic of Bulgaria and transporting cargoes dangerous or polluting the environment, shall be determined in an ordinance, issued by the Minister of Transport, Information Technologies and Communications.

Retention and Return of Freight
Art. 176. (1) The carrier shall be entitled to retain the entire freight, as well as to claim the unpaid part thereof, if the cargo is damaged or lost due to reasons, of which he is not liable.
(2) If the cargo is lost in wreck or compulsorily seized, with no fault of the shipper or the carrier, the freight, as much as has been paid, shall be subject to return, unless stipulated otherwise. If after the wreck the cargo appears to be solved or the compulsorily seized cargo is released, the carrier shall be entitled to such part of the freight, which corresponds to the actual distance covered.

Amount of Compensation in Case of Lost
Art. 177. (amend. - SG 41/01) (1) (amend. - SG 113/02) The carrier shall be obliged to pay compensation for destructed (lost) cargo in amount equal to its price, but BGN 300 for each cargo unit at most.
(2) (amend. - SG 113/02) A cargo unit shall be deemed:
1. for general cargoes – each package, vessel, case, palette, container, unit, bunch or other cargo units, described in the tariff nomenclature of the ports;
2. for the cargoes in bulk or liquid – each ton, if the freight is determined according to the weight;
3. for the timber and the other cargoes – each ton or cubic meter, if the freight is determined on the basis of volume.
(3) (amend. - SG 113/02) In an international treaty to which the Republic of Bulgaria is a party, other amount of the compensation referred to in Para 1 may be established for each cargo unit.
(4) (amend. - SG 113/02) In respect of an international creditor, the country of whom has established lower amount of the carrier's liability than as referred to in Para 1, the carrier shall be liable for compensation within the lower amount in question.

Amount of Compensation in Case of Declared Value
Art. 178. (1) If the cargo was received for carriage with explicitly declared value, the amount of the compensation shall be determined on its basis. If the carriage is carried out with a bill of lading, the rule above shall apply only if the stipulation of the declared value is entered in the bill of lading.
(2) The compensation for lost cargo shall be reduced below the amount of the declared value, if the carrier proves that its actual value is lower.

Place for Determination of the Price
Art. 179. (1) The price o the cargo shall be determined according to the price at the determination at the time, when the ship has arrived are was intended to arrive.
(2) If determination of the price according to the order of Para 1 proves to be impossible, the price at the point of departure on the day of receiving the cargo for carriage shall be considered. The costs for the carriage shall be added to this price.
(3) From the amount of the compensation, calculated according to the aforementioned order, the sums, saved by the consignee from the freight, from customs duties and as a result of non-incurring other costs at his expense shall be deducted.

Compensation in Case of Cargo Damage
Art. 180. (1) The compensation for damage of the cargoes shall be determined as the difference between the price of the cargoes in question in good condition, calculated according to Art. 177 – 179, and their price in damaged condition.
(2) In the cases, provided for in Para 1 and 3 of Art. 177, the amount of compensation for damage of the cargoes may not exceed the price, determined according to their provisions.

Stipulations on the Liability of the Carrier
Art. 181. (1) The stipulations in the carriage contract and in the bills of lading, establishing other grounds for excluding the liability of the carrier, beyond those specified in this Code, or limiting its amount, or specifying more serious requirements for its implementation, shall be void.
(2) The above rule shall not concern any stipulations, governing in other way the liability of the carrier for damages and losses arising of destruction or damage of the cargo, which have taken place before its loading or after discharging from the ship, in case of carriage of living animals and carriage of cargoes, placed on the deck according to the contract.

Compensations, Due by the Shipper
Art. 182. (1) The shipper shall be due a compensation for the damages and losses he has caused to the carrier, by loading consignments on the ship and incorrectly indicating their type and properties or performing the loading without knowledge of the carrier.
(2) The above rule shall apply also in cases, when the misrepresented cargo is easily inflammable, explosive or generally dangerous due to its properties. In the cases, specified in the preceding Paragraph, the shipper shall be liable for damages and losses also towards the consignees or the shippers of other cargoes, as well as towards the members of the crew and the passengers.
(3) If the dangerous cargoes are received on the ship with the knowledge and consent of the carrier, damage of the cargoes, shipped by other shippers to other consignees, arises therefrom, the compensation to the latter shall be due by the carrier.

Applicability of the Rules on Carriage to Towage of Rafts
Art. 183. (1) The rules on carriage of cargoes shall apply respectively also to the contracts of towage of timber in rafts.
(2) In these cases the data regarding the cargo shall be entered in the bill of lading according to the declaration of the shipper, without being verified by the carrier.
(3) The shipper shall provide the rafts at the stipulated location in condition, securing their preservation during the carriage.
(4) The rules referred to in Art. 177 shall not apply to towage of timber in rafts.

Chapter seven.
RENTAL OF A SHIP (TITLE AMEND. - SG 113/02)
Section I.
Rental of a Ship for a Certain Time (new – SG 113/02)
Basic Characteristics
Art. 184. (1) (amend. and suppl. - SG 113/02) With the contract for rental of a ship for a certain time (time-charter) the lessor shall be obliged to provide the lessee an entire ship against a specified rental price, so that the latter may perform carriage of cargoes or passengers or to use her for other activities in compliance with this Code during the time specified.
(2) (suppl. - SG 113/02) The formation and contents of the contract for rental of a ship for a certain time shall be proved only by written evidence.

Contents of the Contract
Art. 185. The contract for rental of a ship shall contain stipulations about her name, technical and exploitation data, including cargo-carrying capacity, number and types of compartments, refrigerating and other technical equipment, power of engines, speed, the activities of which the ship shall be used, the regions in which the lessee shall perform sailing for the stipulated purposes, etc., the amount of the rental price and the payment methods, the term of rental, the place and time of receiving and returning the ship.

Rental for Certain Voyages (title corr. - SG 58/70)
Art. 186. The parties to the contract may specify providing the ship to the lessee for performing one or several voyages for the stipulated purposes, instead of a certain term.

Sublease of the Ship
Art. 187. (1) The lessee shall be entitled, within the margins of his rights in the contract for rental of the ship, to conclude contracts on his own behalf with third persons, to which to sublease the ship or a part thereof for the entire term or a part thereof.
(2) In the cases above the initial lessee shall have the rights and the obligations of a lessor towards the sublessee according to the provisions of this Chapter.
(3) The initial lessee shall remain liable for the performance of the contract for rental of the ship towards the lessor after the conclusion of the subleasing contract.

Transfer of the Ship
Art. 188. (1) (amend. - SG 113/02) Upon transferring the property in a ship, subject to rental for a certain time, as well as upon subleasing the ship by the initial lessee, to another natural or legal person, termination of the rental relationship shall not occur.
(2) The above rule shall have force also in the cases, when the contract for rental of a ship is subject to entry in the ship register of the state, where the lessor is seated, even though such entry may not be available.
(3) (amend. - SG 85/10) In the cases referred to in Para 1 the new owner of the ship shall enter ex lege into the relations of rental of the ship on the place of the initial lessor. The payments, made by the lessee to the initial lessor, shall have effect for the new lessor, if performed before receiving a written notification for the entry of the new lessor into the contract.

Obligations of the Lessor
Art. 189. (1) (amend. - SG 113/02) The lessor shall be obliged to provide the ship within the specified term, at the specified place in state of seaworthiness, suitable for usage according to the purposes (the types of activities, specified in the contract), together with the necessary documents, duly equipped and supplied with the necessary crew.
(2) (amend. - SG 113/02) The lessor, within the term of effect of the contract, shall be obliged to maintain the ship in state of suitability for normal usage, as well as to pay the crew members employment remuneration. The costs for damages and destruction of the ship, the equipment and her supply shall not be incurred by the lessor, if caused by the fault of the lessee.
(3) The costs for minor and current repairs of the ship and her equipment shall be incurred by the lessee.

Consequences of the Failure to Provide the Ship
Art. 190. (1) (amend. - SG 113/02) If the lessor fails to provide the ship to the lessee within the specified term, and if no such term is specified in the contract – within the term, noted in the invitation addressed to him, the lessee may cancel the contract by one-sided declaration, as well as to claim compensation for the incurred damages and losses within the amount of the rent for one month.
(2) The lessor may be exempt of liability for compensation, if he proves that the delay arises of reasons without his fault.

Usage of the Ship
Art. 191. (1) In accordance to the contract, the lessee shall operate the ship from the moment she has been provided to him by acquiring the rights, incurring the obligations and bearing the liabilities in the contracts for carriage of cargoes, including those in the bills of lading, signed by the master with regard to the cargoes, received for carriage.
(2) In operating the ship the lessee shall consider her technical characteristics, specified in the documentation of the ship, as well as observe the contractual clauses – regarding the methods of usage of the ship and her equipment.
(3) The lessee shall be liable for compensation of the passengers, transported on the ship, according to the rules of Chapter VIII.
(4) The costs for fuel and the other costs for exploitation of the ship shall be at the expense of the lessee.
(5) The lessor shall not be entitled to transport his own or other person's cargoes and passengers at his expense in the compartments of the ship, even when the cargoes, received for carriage by the lessee, do not take the entire stowage area, the stowage space or the tonnage of the ship in question, unless stipulated otherwise.

Lessee and Master
Art. 192. (1) After providing the ship to the lessee, the master and the other members of the crew shall be obliged to perform the orders of the lessee regarding the commercial exploitation of the ship, in this number these related to the receipt of cargoes for carriage, stowage and delivery in the ship compartments, performing of the carriage and delivery to the consignees. This provision shall apply regardless of the fact that the employment relations between the the master, the members of the crew and the lessor continue to exist.
(2) After provision of the ship to the lessee, the lessor may address orders to the master only in relation to the technical exploitation of the ship, the internal order, the composition and the discipline of the ship's crew.

Consequences of the Loss of the Ship
Art. 193. If the ship is lost, the rental price shall be due by the day of the loss, and if this day cannot be established – by the day, in which the last information thereof is received.

Payment of the Rental Price
Art. 194. (1) The lessee shall be obliged to pay the rental price before the beginning of the period of time it is due for. Unless otherwise stipulated by the parties, it shall be deemed that the period is monthly.
(2) The lessee shall not be obliged to pay rent for the period, in which the ship has been unsuitable for exploitation because of unseaworthiness, lack or incompleteness of the crew, when the lessor provides the ship with crew, lack or damage of the equipment. During this period the lessee shall not be liable also for the costs for exploitation of the ship.
(3) If the ship has become unsuitable for exploitation through the fault of the lessee, the lessor shall be entitled to claim full payment of the rental price, regardless of the compensation for damages, caused by the lessee.

Consequences of Non-payment of the Rent
Art. 195. (amend. - SG 113/02) If the lessee delays payment of the specified rent without any grounds to refuse payment, or uses the ship in breach of the contract, the lessor may cancel the contract and claim compensation for the damages incurred or the entire rent by the end of the stipulated duration.

Damage of the Ship
Art. 197. (1) The contract for rental of a ship shall be terminated with expiration of the term it was concluded for.
(2) If the lessee does not return the ship to the lessor at the specified location immediately after termination of the contract, and if no stipulation on this issue is available – at the location of receiving it, he shall be due compensation to the lessor double the amount of the rent for the time of delay.
(3) If the delay is through the fault of the lessee, the lessor may claim compensation for the damages, exceeding the amount referred to in the preceding Paragraph.
(4) The time, in which the rented ship is used for rendering help and for salvage on sea, shall not be deemed a delay.

Other Grounds for Termination
Art. 198. (1) (amend. - SG 113/02) The contract for rental of a ship shall be terminated ex lege, if the ship is lost, confiscated, etc.
(2) (amend. - SG 113/02) Each of the parties may cancel the contract, if the purposes it was concluded for, may not be accomplished because of break of a war, social unrest, etc., provided that these circumstances affect the regions, in which the lessee intends to carry out the activities the ship was rented for.
(3) Art. 197 shall apply to the return of the ship.

Apportionment of the Sums for Help and Salvage
Art. 199. The remuneration, due for rendering help and salvage, performed by the ship during the rental term, shall be apportioned equally between the owner and the lessee, after deduction of the sums for repairing damages, caused to the ship, the costs on salvage, as well as the sums for remuneration of the crew.

Section II.
Bareboat Charter Contract (new – SG 113/02)
Basic Characteristics
Art. 199a. (new – SG 113/02) The bareboat charter contract is a contract for rental of a ship for a specified term, by virtue of which the lessee receives full rights of possession and control of the ship, including the right to appoint a master and crew of the ship for the entire term of the charter.

Formation
Art. 199b. (new – SG 113/02) (1) In conclusion of a bareboat charter contract the shipowner (the lessor) shall take the obligation to provide the lessee (the bareboat charterer) with the full right of possession and control of the ship, including the right to appoint a master and crew of the ship for the entire term of the charter.
(2) The bareboat charter contract shall be concluded in writing.

Contents of a Bareboat Charter Contract
Art. 199c. (new – SG 113/02) The bareboat charter contract shall contain clauses on the parties to the contract, the name of the ship, her class, if available, the flag, the technical and exploitation specifications of the ship, the fuel consumption, the region of sailing, the purpose of the charter of the ship, the location and time of providing and receiving the sip, the rental price and the term of charter of the ship.

Subcharter of a Ship, rented in a Bareboat Charter Contract
Art. 199d. (new – SG 113/02) (1) Unless stipulated otherwise, the lessee, within the margins of his rights pursuant to the bareboat charter, may conclude on his own behalf contracts for providing the ship to any third person by virtue of a bareboat charter for the term of effect of the contract or part thereof.
(2) In the cases referred to in Para 1 the initial lessee shall have the rights and obligations of a lessor towards the sublessee, pursuant to the provisions of this Section.
(3) The initial lessee shall remain liable for the performance of the bareboat charter contract towards the lessor after conclusion of the subcharter contract.

Seaworthiness of the Ship
Art. 199e. (new – SG 113/02) (1) The shipowner shall be obliged to provide the ship to the lessee to the bareboat charter contract in state of seaworthiness, suitable for exploitation regarding the hull, machinery and equipment according to the purposes of the charter, specified in the contract.
(2) The lessee shall be obliged to maintain the seaworthiness of the ship at his own expense during the entire term of effect of the contract. The correction of the latent deficiencies shall be an obligation of the shipowner.

Crew
Art. 199f. (new – SG 113/02) The lessee shall provide the ship with crew. The master and the other members of the crew shall be subordinate to the lessee.

Obligations of the Lessee in a Bareboat Charter Contract
Art. 199g. (new – SG 113/02) (1) The commercial exploitation of the ship shall be carried out by the lessee in compliance with the conditions of the bareboat charter contract, and all costs related to the exploitation, including the remuneration of the crew shall be at his expense. The lessee shall insure the ship and his third-party liability.
(2) Upon expiration of the term of the bareboat charter contract the lessee shall be obliged to return the ship to the shipowner in the condition she was received by him, considering the normal wear resulting of her exploitation.

Third-party Liability of the Lessee
Art. 199h. (new – SG 113/02) The lessee shall be liable to third persons for the grounded claims, arising of the exploitation, including for the claims for compensation of damages, caused by oil pollution, as well as for damages caused in carriage of dangerous and harmful substances.

Payment of the Rent
Art. 199i. (new – SG 113/02) (1) The lessee shall pay the rent to the shipowner in terms and in a way, specified in the contract.
(2) In case of non-payment of the rental price for invalid reasons for more than 14 calender days or for other period, specified in the contract, the shipowner shall be entitled to terminate the contract without advance notice, to regain the possession and the control of the ship and to claim compensation for the incurred damages.
(3) In case of destruction of the ship the rental price shall be due for the period from the day, specified in the contract, by the day of her destruction, and if this day may not be established – by the day of the last notice received from the ship.

Prevention of Seizure of the Ship
Art. 199j. (new – SG 113/02) When buying out the ship was stipulated by virtue of the bareboat charter contract, the shipowner shall not be entitled to terminate the contract in case of delay of the payment of the last instalment for a term longer than 14 calender days, if the delay is for circumstances through no fault of the lessee. In these cases the shipowner shall preserve his right to claim compensation from him for the damages arising of the delay.

Buying out the Ship
Art. 199k. (new – SG 113/02) In the cases, where buying is stipulated in the bareboat charter contract, the ownership in the ship shall be transferred from the lessor, when he is the shipowner, to the lessee to the contract, provided that the latter has performed his obligations pursuant to the bareboat charter contract and has paid the last instalment.

Liability for Deficiencies of the Bought Ship
Art. 199l. (new – SG 113/02) The lessor shall be liable for latent deficiencies of the ship bought out, if the lessee proves that these deficiencies have existed or have arisen before transfer of the ownership in the ship.

Chapter eight.
CONTRACT FOR CARRIAGE OF PASSENGERS AND BAGGAGE (TITLE AMEND. - SG 113/02)
Basic Characteristics
Art. 200. (amend. - SG 133/02) By virtue of the contract for carriage of passengers the carriers shall be obliged to transport by ship the passenger and his personal baggage to a specified location for payment of a carriage price.

Passenger Ticket
Art. 201. (amend. - SG 133/02) (1) The contract for carriage of passengers shall be concluded by issuing an individual or group passenger ticket by the carrier. The passenger ticket shall be an evidence of the formation and the contents of the carriage contract, as well as an evidence of the payment of the carriage price.
(2) The passenger ticket shall contain a note of the place and date of issue, place of departure and arrival, as well as the price of carriage. The ticket may be named or to a bearer. In case of a named ticket, the right of carriage may be transferred to another passenger only with the consent of the carrier.
(3) The carrier shall be obliged to announce a tariff of the prices of the provided services.

Carriage of Baggage
Art. 202. (amend. - SG 41/01) (1) (amend. - SG 112/02) The carriage price, noted on the ticket, shall include also the carriage of the personal (hand) baggage. The volume or the weight of the Art.s, representing personal baggage and transported in the passenger's compartments, shall be determined by the carrier.
(2) The baggage, exceeding the established margins, shall be received for carriage by the same ship against payment of additional price, where the carrier shall issue a receipt to the passenger, containing exact indication of the baggage, date of receipt, place of departure and destination.

Obligations Related to the Carriage
Art. 203. (1) Before beginning of the carriage the carrier shall be obliged to provide the ship in seaworthiness, duly equipped and supplied with a crew, as well as to secure safe voyage for the passenger.
(2) Except the cabotage carriage, the carrier shall be obliged, without additional payment, to provide food, lodging and services to the passenger during carriage.

List of the Passengers
Art. 203a. (new – SG 113/02) (1) The carrier shall draw up a list of data of the passengers for every carriage, carried out by passenger's ship, intended for carriage of more than 12 passengers on distance more than 20 sea miles.
(2) (amend. - SG 87/05; amend. - SG 85/10) The conditions and order of registration of the passengers shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications.
(3) Before departure of a passenger's ship, intended for carriage of more than 12 persons on distance more than 20 sea miles, the list of the persons, present on board, shall be handed over to the master of the passenger's ship, and on the coast – to a representative of the Executive Agency "Maritime Administration", by a representative of the carrier.
(4) All persons on board of a ship, departing a port, shall be counted by the master of the passenger's ship, who shall promptly notify the ship's agent, the carrier and the Executive Agency "Maritime Administration" in case of missing persons.

Obligations of the Passenger during Carriage
Art. 204. The passenger shall be obliged to observe the order established on the ship, as well as to perform all orders of the master related thereto.

Carriage Obstacles
Art. 205. (1) Each of the parties may renounce the contract because of breakage of war, posing danger during carriage, because of blockade of the port of departure or of destination, because of arrest of the ship by order of the authorities or other obstacles of similar character, arising before or after beginning of the carriage.
(2) In case of renouncement of one of the parties for the reasons above, the passenger may claim return of the entire carriage price, if the renouncement was made before beginning of the carriage, and if the renouncement was made after this – the part of the carriage price, due for the distance not covered.

Interruption of the Carriage
Art. 206. If the ship cannot continue the carriage, after it was started, or to reach the destinations due to local obstacles, the passenger shall be entitled to claim refund of the carriage price for the uncovered distance or to request from the carrier to provide another ship or other carriage means for carriage to the destination.

Rescinding the Contract
Art. 207. (1) (amend. - SG 113/02) The passenger may cancel the carriage contract any time before departure of the ship or at any port, where the ship stops for boarding or landing of passengers.
(2) If the carriage has begun, the carriage price shall not be refunded.

Rescission without Notification
Art. 208. If the passenger does not appear on board at the specified time, he may not claim refund of the carriage price, including for food and lodging.

Consequences of the Notification
Art. 209. Any passenger, who has notified the carrier of rescinding the contract shall be entitled to claim return of the paid price:
a) in full amount – upon notification at least 6 hours before departure of the ship for the cabotage carriage, or 7 days – for the transborder carriages;
b) in full amount – upon request of the rightholders, when the passenger dies before departure;
c) (amend. - SG 113/02) 50 % - upon notification made at least 3 days before departure for transborder sailing.

Delay of Departure
Art. 210. (1) (amend. - SG 113/02) If the departure is delayed through the fault of the carrier, the passenger shall be entitled to food and lodging, as well as to servicing during the delay.
(2) (amend. - SG 113/02) When the delay of the departure of the ship is longer than 6 hours for the cabotage carriage and more than 3 days for the rest, the passenger may cancel the contract, being entitled to claim return of the carriage price.
(3) When the carriage is carrier out by non-passenger's ship, the terms above shall be doubled.

Termination of the Contract
Art. 211. (1) The contract for carriage of passengers shall be terminated ex lege, when the ship is lost, sunk or destroyed.
(2) In the aforementioned cases the carriage price shall be returned under the conditions of Art. 205, Para 2.

Liability of the Carrier
Art. 212. The period of time, during which the carrier may be held liable, shall begin from the moment of boarding of the passenger on the ship or on the vehicle for carriage from the coast to the ship, if such carriage is included in the carriage price or is carried out by a vehicle of the carrier, even for extra payment.

Liability in Case of Death or Injury of the Passenger
Art. 213. (amend. - SG 41/01) (1) The carrier shall be liable for the damages in case of death, injury or health disorder of the passenger, if caused through the fault of the carrier or his employees, as far as they were acting on the ship within the limits of their employment obligations.
(2) The fault of the carrier in the cases referred to in the preceding Paragraph shall be presumed until proven otherwise.
(3) When the carrier proves, that the damages have arisen also as a result of intention or gross negligence of the passenger, the amount of the indemnity shall be respectively decreased.
(4) When the carriage is carried out on the basis of an international agreement, to which the Republic of Bulgaria is a party, the conditions, the order and the amount of the liability for damages as referred to in Para 1 shall be determined according to the agreement in question.

Liability of the Carrier for Baggage
Art. 214. (1) The carrier shall be liable for loss or damage of the baggage received for carriage according to the rules of the liability for carriage of cargoes.
(2) For jewellery, money, negotiable instruments, works of art and other valuables the carrier shall be liable only if they have been declared to the master or a person determined by him upon provision as baggage.
(3) The carrier shall be liable for loss or damage of the personal (hand) baggage of a passenger, only if the passenger proves, that it is result of actions of the carrier or persons, hired for providing services on the ship, in case of intention or gross negligence.

Moment of Establishing the Losses and Damages
Art. 215. The losses and damages of the baggage shall be established at the moment of its receipt, and if losses and damages, which cannot be established in an ordinary inspection, are concerned – within 3 days from releasing the baggage.

Mount of Compensation
Art. 216. (amend. - SG 113/02) The amount of the compensation for losses and damages of the baggage shall be determined according to the actual price of the Art.s, which have been handed over without declaration of their value, but may not exceed BGN 40 per kilogram.

Right of Retention in the Baggage
Art. 217. The carrier shall be entitled a right of retention in the baggage of the passenger until satisfaction of his claims in the carriage contract. He shall be entitled a preference in its value.

Unreleased Baggage
Art. 218. (amend. - SG 113/02) Any baggage, unreleased within 3 months from arrival of the ship, at the destination port, shall be sold by the carrier according to the order of the ordinance referred to in Art. 159, Para 7.

Passengers without Carriage Contract
Art. 219. (amend. - SG 113/02) In respect of the persons, travelling without ticket on the ship, the carrier shall be liable only when these persons prove, that the damages, incurred by them during the voyage, arise of intentional or gross negligent actions of the carrier.

Prohibition for Limiting the Liability
Art. 220. (corr. - SG 58/70) Any stipulations, limiting the rights of the passengers under this Chapter, or excluding or limiting the liability of the carrier, shall be void.

Group Voyages
Art. 221. (1) (amend. - SG 113/02) Unless otherwise stipulated, these rules shall apply also to contracts for group voyages of passengers.
(2) Any stipulations reducing or excluding the liability of the carrier under Art. 213 shall have no effect.

Ordinance for Carriage of Cargoes, Passengers and Baggage
Art. 221a. (new – SG 113/02; amend. - SG 87/05; amend. - SG 85/10) The conditions and order for carriage of cargoes, passengers and baggage shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications.

Chapter nine.
CONTRACTS OF SHIPPING SERVICES
Section I.
Contract of Agency
Basic Characteristics
Art. 222. (amend. - SG 41/01) (1) By virtue of the contract of agency the ship's agent takes the obligation to perform on behalf of the shipowner and at his expense, against remuneration, the usual services, related to shipping in the region of the specified port or territory.
(2) (amend. - SG 113/02) The ship's agent shall represent the shipowner before the port authorities, before all institutions and authority bodies, natural and legal persons in the Republic of Bulgaria. He shall represent the shipowner and the master of the ship in connection with all formalities and actions related to the arrival, stay and departure of the ship, he may conclude on behalf of the shipowner carriage contracts, insurance contracts and contracts for handling the ship, to issue and sign bills of lading for loaded cargoes, to deliver received consignments against presenting the original bills of lading by their legitimate holders, to cash prepaid and due freights and other claims of the shipowner, arising of performance of the carriage contract, to pay sums, related to the stay of the ship in the ports of the Republic of Bulgaria according to the orders of the shipowner or the master of the ship, to submit claims on their behalf before the courts.

Actions for Both of the Parties
Art. 223. In case of concluding a contract on behalf of the shipowner, the ship's agent may also act in favour of the other contracting party, if authorized by it therefore and with the consent of the shipowner.

Obligations of the Agent
Art. 224. The agent shall be obliged to take care for the interests of the shipowner, to abide his orders and instructions, to promptly provide him the necessary information on the course of the activities, to give account of the received and spent sums and to make the necessary efforts for preserving the rights of the shipowner.

Advance Payment
Art. 225. Unless stipulated otherwise, upon request of the ship's agent, the shipowner shall be obliged to provide the respective advance payments for covering the expenses, related to the agency of the ship.

Section I.
"A" Ship Management Contract ( new – SG 98/2008)
Basic Characteristics
Art. 225a. (new – SG 98/08) With the Ship Management Contract- Ship Management Contract, the ship manager shall be bound on behalf and on the account of the ship owner against remuneration one or more than one of the following services:
1. arrange and maintain a system of management of the safe exploitation of the sip and prevention from pollution;
2. complete the ship crew with capable marine persons;
3. execute the management of the shipment in technical aspect;
4. execute the trade exploitation of the ship;
5. execute finance management of the finances of the ship owner, connected with the ship he/she manages;
6. arrange insurance of the ship;
7. execute accounting service of the ship owner in connection with the ship he/she manages;
8. co-operate with the ship owner for purchase and sale of ships;
9. organise provision of the ship with food;
10. provide the ship with fuel and oils;
11. performs other services, which are assigned by the ship owner.

Contract Contents
Art. 225b. (new – SG 98/08) (1) Ship Management Contract shall contain clauses at least on the parties to the contract, the individualizing of the ship, IMO number, the class of the ship as such, technical and exploitation data, right and obligations of the parties, representative powers of the ship manager, price and term of the contract, as well as the procedure and manner of reporting the services under Art. 225a.
(2) Ship Management Contract shall be concluded in written form.

Due Diligence
Art. 225c. (new – SG 98/08) Ship Manager shall perform the assigned work with the due diligence of a merchant in accordance with the good seamanship.

Payments in advance
Art. 225d. (new – SG 98/08) Ship owner shall be obliged to make upon request the respective payments in advance, related to the ship management.

Section II.
Contract of Brokerage in Shipping (title amend. - SG 113/02)
Basic Characteristics
Art. 226. (amend. - SG 113/02) By virtue of the contract of brokerage the mediator (the broker) shall take the obligation by the order of the client to mediate against remuneration in conclusion of carriage contracts by ship, rental of ships, towage, insurance. By the order of the client the mediation may concern other activities, related to shipping.

Range of the Authorization
Art. 227. By the orders of the client, the authorization may include also the right of concluding contracts, receipt and payment of sums on behalf and at the expense of the client.

Actions of the Both Parties
Art. 228. The broker may represent both of the parties, if requested by them, but he shall be obliged to notify each of the parties of representing also the other contracting party, and shall consider the interests of both of the parties in the mediation.

Remuneration
Art. 229. The broker shall be entitled a remuneration for the mediation, when the contract is concluded as a result of his efforts.

Accountancy Obligation
Art. 230. The broker shall be obliged immediately after the performance of the order, to give account for every sum received.

Section III.
Contract of Towage
Basic Characteristics
Art. 231. (amend. - SG 113/02) By virtue of the towage contract the owner of a towage ship (towboat or pushboat) shall take the obligation against remuneration to perform towage (pushing) of another ship or other vessel on a specified distance, in a specified time, or to perform a manoeuvre.
(2) The provisions of Para 1 may apply also to pushing a stock or in towing a laterally connected group.

Scope of Application
Art. 232. (amend. - SG 113/02) (1) The provisions on the contract of towage shall apply also to performing port services by towage ships in a laterally connected group, pushing, leading in other ships or vessels in the ports and leading them out, performing manoeuvres in them from and to the anchorage and quay places, leading them through to the approaches and others, when not otherwise stipulated by the parties.
(2) (amend. - SG 87/05; amend. - SG 85/10) The conditions and order of providing a tugging port service (towage or pushing) to ships and other vessels shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications.

Form of the Contract
Art. 233. (amend. - SG 113/02) The contract of towage may be concluded verbally, but the agreement on transferring the obligation for controlling the the towed (pushed) ship or stock to the master of the towboat (pushboat) may be proved only by written evidence.

Obligations of the Parties
Art. 234. (1) (suppl. - SG 113/02) Each of the parties to the contract of towage (pushing) shall be obliged to timely put its ship (vessel) in a condition, appropriate for towage (pushing).
(2) The navigational command shall be carried out according to the orders of the master of the towed ship, unless otherwise stipulated.
(3) (amend. - SG 113/02) The shipowner of the towing ship shall not be liable for defects of his ship, which could not be found in usual use and exercising due care.

Requirements of Safe Shipping
Art. 235. (amend. - SG 113/02) (1) The towage shall be carried out with a skill, corresponding to the specificity of the activity, after accurate evaluation of the hydro-meteorological conditions and other shipping conditions, by qualified seafarers and according to the good seamanship.
(2) The ship under the navigational command of the master of another ship shall not be exempt of the obligation to act appropriately to ensure safe sailing.
(3) For towing or pushing, the master, responsible for the towage, shall be obliged to certify in the appropriate administration a plan of towage. The towed (pushed) ship shall be supplied with a towage certificate, granted by the Executive Agency "Maritime Administration" at the port, where the towage shall start from. Such certificate shall not be required for usual operations on the river.

Liabilities
Art. 236. (1) (amend. - SG 113/02) The liability for the damages caused to the towed ship (pushed ship or vessel), or to the people or properties on her, when the master of the towboat (pushboat) commands also the towed ship (pushed ship or vessel), shall be held by the shipowner of the towboat (pushboat) when not stipulated otherwise, unless he proves no fault.
(2) (amend. - SG 113/02) The liability for damages, caused to the towboat (pushboat) and the people and properties on it, when the master of the towed ship (pushed ship or vessel) commands also the towboat (pushboat), shall be held by the shipowner of the towed ship (pushed ship or vessel) when not stipulated otherwise, unless he proves no guilt.

Towage or Pushing of a Ship without Crew
Art. 236a. (new – SG 113/02) (1) In case of towage or pushing of a ship without crew, the master of the towing (pushing) shall be responsible for the towage.
(2) The ship without crew shall be prepared for the forthcoming towage (pushing), according to the good seamanship, in compliance with the instructions of the Executive Agency "Maritime Administration".
(3) The master of the towing (pushing) ship shall be obliged to receive the towed (pushed) ship with suitable ship documentation and with the appropriate preparation according to the good seamanship. For receiving the ship the master shall sign a protocol.

Section IV.
Pilotage
Scope of Application
Art. 237. (amend. - SG 41/01) (1) For ensuring the safety of shipping between the ports, on the approaches to the ports in their regions, as well as in other places, where admitted as necessary, the leading of the ships shall be performed by sea pilots, regardless of their flag and to whom they belong.
(2) During the pilotage the pilot shall remain subordinate to the master of the piloted ship.
(3) The master of the ship shall be obliged to provide to the pilot all the information of the navigational features of the piloted ship.
(4) (amend. - SG 87/05; amend. - SG 85/10) The organization and the activities of the pilots shall be regulated in an ordinance, approved by the Minister of Transport, Information Technologies and Communications.

Compulsory and Non-compulsory Pilotage
Art. 238. (1) (amend. - SG 41/01) The areas of compulsory and non-compulsory pilotage shall be determined by the Executive Agency "Maritime Administration" and shall be published in the "Notices to Seafarers" and in the "Compulsory Regulations of the Port", issued by the captain of the port.
(2) Sailing without pilots shall be prohibited in the areas of compulsory pilotage.
(3) (amend. - SG 41/01) The areas of compulsory and non-compulsory pilotage in the cases, where the ships are exempt of compulsory pilotage, the grounds of issuing a prohibition to be visited by ships, determining the places for berthing on quays and for performing loading an discharging operations in breach of the safety requirements or on places, not meeting those requirements, shall be determined by the masters of the ports. The Executive Agency "Maritime Administration" shall determine the cases and the conditions, where the ships are exempt of compulsory pilotage.
(4) The masters of the ships shall be entitled, upon their discretion, to use pilot services in places, where these services are not compulsory according to the existing regulations.

Pilot Station
Art. 238a. (amend. - SG 41/01) (1) The Executive Agency "Maritime Administration" shall determine the place (pilot station), where the controller of the pilot services shall carry out pilotage.
(2) When performing pilotage in the pilot station, the controller of the pilot organization shall assist the controller of the Executive Agency "Maritime Administration" in the regulation of the traffic and controlling the pilotage.
(3) In a single pilotage region shall be formed a single pilot station, serviced by a single pilot organization. The conditions and order of performing the contest and for choosing a pilot organization shall be determined in the ordinance referred to in Art. 237.

Pilotage Contract
Art. 238b. (new – SG 113/02) (1) The pilotage activity shall be performed by virtue of a contract between the shipowner or his representative and the pilot organization.
(2) By virtue of the pilotage contract the pilot organization takes the obligation to perform pilotage of the ship against remuneration.
(3) In case terms announced in advance, the application of the master of the ship or the agent to the pilot organization shall be considered a confirmation for concluding the contract referred to in Para 1.

Obligations of the Pilot
Art. 239. (amend. - SG 113/02) The pilot shall be obliged to notify the master of the ship of the noticed infringements of the order at the state borders, the rules of shipping, the compulsory orders and other rules and to request elimination of the noticed infringements. In case of non-performance by the master of the these or other legal requirements, the pilot shall notify immediately the inspector of the territorial unit of the Executive Agency "Maritime Administration" on duty.

Liability of the Pilot Service
Art. 240. The liability for damages to ship, caused through the fault of the pilot by non-performance of his employment obligations, shall be held by the pilot service. This liability shall be limited to ten times the amount of the pilot fee for the pilotage service, in the course of which the damages have occurred.

Leaving the Ship by the Pilot
Art. 241. The pilot shall not have the right to leave the ship without the consent of the master, before being safely anchored and moored or lead into the sea, or before substitution by another pilot.

Pilot's Refusal of Pilotage
Art. 242. When the master, who has taken a pilot on the ship, does not follow his instructions or requirements in pilotage of the ship, the pilot shall be entitled to declare in the presence of a third person, that he shall not bear responsibility for the further pilotage of the ship any more.

Responsibility for the Command of the Ship
Art. 243. The presence of the pilot on the ship shall not exempt the master from the responsibility for the command of the ship.

Pilot Fees
Art. 244. (1) Pilot fees, determined according to the established order, shall be paid for using pilotage service.
(2) The master, who has called a pilot, and has rejected his services after his arrival, shall be obliged to pay the full amount of pilot fees, due for the pilotage.

Section V.
Traffic Management and Information Service of Shipping (new – SG 113/02)
System of Traffic Management and Information Service of Shipping
Art. 244a. (new – SG 113/02; suppl. - SG 71/08) (1) State Enterprise "Port Infrastructure" shall build and maintain a System of Traffic Management and Information Service of Shipping according to order, determined by the Council of Ministers, provide of traffic management and information services to shipping and shall exchange information with other systems, specified in a law or in an international treaty, to which the Republic of Bulgaria is a party.
(2) Executive Agency "Maritime Administration" shall control the activities under Para 1.

System of Monitoring and Control of the Fishing Ships
Art. 244b. (new – SG 113/02; revoked – SG 94/05, in force from 01.01.2006)

Chapter ten.
CONTRACT OF MARINE INSURANCE
Basic Characteristics
Art. 245. (1) By virtue of the contract of marine insurance the insurer shall take the obligation to cover certain marine risks to which the insurable interest is exposed and to pay a compensation for the damages within the limits of the sum insured, if the interest in question is affected by occurrence of such risks, and the insuring party shall take the obligation to pay insurance premium.
(2) The rules of this Code regarding the marine insurance shall apply as far as not otherwise stipulated by the parties. Any agreements between the parties contradicting to them shall have no effect only in the cases explicitly specified in this Code.

Subject-Matter of the Marine Insurance
Art. 246. Subject-matter of the marine insurance may be any property interest related to shipping, which can be evaluated in money, i. e. a ship in operation, repair or construction; cargo; freight; rental price of a ship; remuneration for carriage of passengers; the profit expected of the arrival of the cargo at the destination; the expenses in general average; the obligations and security related to the ship, the cargo or the freight; the obligations for employment remuneration of the master and the members of the crew, etc.

Insurance of a Ship
Art. 247. (1) The insurance of a ship against marine risks shall cover the hull, her machinery, accessories, equipment, fuel, food for the crew, etc.
(2) The contract may specify, that the insurance shall cover the liability of the shipowner for damages, caused by the ship to third persons.

Subscription Insurance
Art. 248. (1) In the cargo marine insurance may be specified, that their effect shall cover all or certain types of cargoes, which will be sent or received by the insuring party during a certain period (subscription policy).
(2) The insurer shall be obliged to issue the insuring party separate policies or insurance certificates for the separate cargo consignments, affected by the contract.
(3) In case of discrepancy between the contents of the subscription policy and the policy or the insurance certificate of the separate consignment, the stipulations specified in the latter shall have effect.
(4) Each of the parties to the subscription insurance contract may cancel it, by addressing a written notification to the opposite one. The termination of the contract shall occur after expiration of one month from receipt of the notification.

Covered Risks
Art. 249. (1) The marine insurance shall cover the risks specified in the contract.
(2) The parties may stipulate, that the insurance shall cover all marine risks. In such cases the insurance shall not include the thermonuclear and war risks referred to in Art. 252 and 253.
(3) If the parties specify that the insurer shall cover only the marine risks, resulting in destruction of the subject-matter, the insurer shall be liable also for damages, but only in case of wreckage.

Extending the Risks in Case of Combined Carriage
Art. 250. If stipulated by the parties, the marine insurance contract may cover the risks, to which, in relation to the carriage by sea, the insured subject-matter may be exposed to during carriage by internal waters, by land or by air.

Occurred or Declined Risk
Art. 251. (1) The marine insurance contract shall have no effect, if at the time of its formation the damage of the risk covered has already occurred or the possibility of its occurrence has declined, unless the insuring party did not know or was not obliged to know these circumstances at the time of formation of the contract.
(2) The insurer shall have the right to retain or to receive the entire insurance premium, unless he knew or was obliged to know the circumstances referred to in Para 1 at the time of formation of the contract.

Thermonuclear Risks
Art. 252. (1) The marine insurance shall not cover the risks arising of the effects of atomic and nuclear explosions, radiations and radioactive infection.
(2) The parties to the contract may specify in explicit stipulation coverage of all or some of the risks referred to in Para 1 against payment of additional premium.

War Risks
Art. 253. (1) The marine insurance contract shall not cover the risks of war activities or war operations and their consequences, of use of rockets, mines, torpedoes, bombs and other similar weapons, of capturing, pirate activities, as well as of civil war, social unrest, strikes, confiscations, requisitions, arrest or destruction of the ship or the cargo upon request of the military or civil authorities, etc.
(2) The parties to the contract may specify in explicit stipulation coverage of all or some of the risks referred to in Para 1 against payment of additional premium.
(3) In respect of insurance of a ship with a war risk clause, the insurer shall be liable, when increase of the risk in question has occurred, the ship does not undertake the voyage or prolongs it or has entered another port, only if the insuring party, when being acquainted with the increase of the war risk, notifies the insurer immediately, that he agrees to pay additional premium for the increase in question.
(4) In respect of insurance of a cargo with a war risk clause, the insurer shall be liable, when increase of the risk in question has occurred and the cargo was discharged of the ship, only if the insuring party, when being acquainted with the forthcoming or already made discharge, because of the increase of the risk in question, notifies the insurer immediately, that he agrees to pay additional premium for the increase in question.

Duration of the Insurance
Art. 254. (1) The marine insurance shall cover the specified risks, if they arise during the specified time.
(2) If the insurance was concluded for a certain voyage, it shall start from the beginning of loading. If the voyage in question ends earlier than specified, without occurrence of any of the specified risks, its effect shall end with the discharge of the cargo from the ship at the destination.
(3) Under the conditions stipulated in the contract, risks for cargoes may be covered "from warehouse to warehouse".

Location of the Risks
Art. 255. (1) In respect of marine insurances, concluded for a certain period, the risks shall be covered regardless of where they have occurred. However, the parties may specify zones or areas, where the coverage of the risks shall have no effect, or to restrict the effect of the insurance only to risks, occurred in the zones, specified by them.
(2) In respect of marine insurances for a certain voyage, the specified risks shall be covered, as far as they occur during the voyage in question or at the deviations allowed in this Code.
(3) The rule under the preceding Paragraph shall not affect the effect of the subscription insurances.

Conclusion of Contract and Obligation for Notification
Art. 256. (1) Upon conclusion of the marine insurance contract the insuring party shall be obliged to notify the insurer of all circumstances, familiar to him or could be familiar to him buy exercising the due care, and have substantial significance for the assessment of the risk by the insurer, the conditions of the contract and for the decision to accept the offer.
(2) The preceding provision shall not apply to the cases, regarding generally known circumstances or to circumstances, with which the insurer could be familiar by exercising the care of the reasonably prudent person.

Consequences of the Failure to Notify
Art. 257. (1) If the insuring party breaches his obligation referred to in Art. 256, the insurer shall have the right to renounce the concluded contract, by retaining the right on the entire insurance premium.
(2) If the insurer does not exercise his right to renounce the contract within 7 days from the day, in which he became familiar with the significant circumstances he was not notified or was incorrectly notified of, he may refuse to pay the insurance compensation at the occurrence of the covered risk, only if the risk in question is related to some of this circumstances.
(3) If the insuring party fails to report or reports incorrectly some of the significant circumstances, without guilt thereof, the insurer may claim only respective increase of the insurance premium.

Insurance Policy
Art. 258. The existence and the contents of the marine insurance contract may be proved only by written evidence and insurance policy, insurance certificate or a temporary document.

Contents of the Policy
Art. 259. (1) The insurance policy (the insurance certificate) shall contain stipulations about:
1. the subject-matter of insurance (the insurable interest), and in case of cargo carriage – the name of the ship;
2. the sum insured;
3. the risks, which shall be covered;
4. duration of the insurance;
5. the voyage and the intermediate ports, in which the ship shall stop before the destination;
6. the place and day of issuing the policy;
7. the insuring party;
8. note of the insurer and a signature of his representative.
(2) Stipulations on other questions may be also included in the policy, including settling of disputes by arbitration, determining the applicable law, etc.
(3) For subsequent amendments of stipulations in the policy a written attachment shall be issued by the insurer.

Model Clauses
Art. 260. (1) If the marine insurance contract is concluded according to established general terms or model policy, this fact shall be explicitly noted before the signature of the insurer, and their text to be attached to the policy.
(2) The general terms or model policy, to which the policy refers, shall have effect as far as they do not contradict to the explicit stipulations therein.

Types of Policies
Art. 261. (1) The marine insurance policy shall be issued according to the request of the insuring party as named, order or to a bearer.
(2) The insurer may oppose the objections he has against the insuring party in an order policy also to the subsequent holders by indorsement.

Third-Party Beneficiary Insurance
Art. 262. When the marine insurance is concluded in favour of a third party, the policy shall be issued to the insuring party. Before its delivery to the third party or before the statement of the third party for accepting the stipulation in their favour, he shall be entitled to wave the third party or to substitute it with another party.
(2) If a policy (a insurance certificate) has been issued, the insuring party may exercise the rights in the insurance without authorization by the third party by presenting the policy.
(3) The insuring party shall be obliged to pay the insurance premium, even though he has delivered the policy to the third party.
(4) The third party shall enter in the obligations related to the increase of the risk, as well as in the obligations related to the insuring party event.

Insurance at the Expense of those Concerned
Art. 263. (1) When the marine insurance is concluded at the expense of those concerned, without the third party being determined by name, the policy shall be deemed to be always to a bearer, regardless of whether it is noted as named or order.
(2) If the event insuring party occurs, the insurer shall be obliged to pay the indemnity, only if, together with the other requirements, the insurance policy is presented to him by the person, claiming indemnity.

Transfer of an Insured Ship
Art. 264. (1) If the insured ship is transferred, the marine insurance shall be terminated in the moment of the transfer, unless the insurer explicitly agrees its effect to be extended thereafter.
(2) If, however, the insured ship is transferred during a voyage, the marine insurance shall remain in force to the end of the voyage.

Insurable Value
Art. 265. (1) The insurable value is the value of the insured subject-matter at the day of conclusion of the marine insurance contract.
(2) The value of the ship shall comprise also the value of her machinery, equipment, stores, as well as the insurance expenses, unless otherwise stipulated in the contract.
(3) The value of the cargo shall be determine according its value at the place and time of loading, together with the insurance expenses, the freight and the expected profit according to the stipulated amount.
(4) The entire sum of the freight and insurance expenses shall be considered in respect of the insurance.
(5) In respect of other insurable interests, the value shall be determined according to the sum, which would be lost by the insuring party or he would be obliged to pay to another person, if the risk occurs at the beginning of the insurance, together with the expenses for the insurance in question.

Sum Insured
Art. 266. (1) At the conclusion of the marine insurance contract the insuring party shall declare the sum, for the amount of which the subject-matter (the interest) shall be insured.
(2) The sum insured may not exceed the insurable value.
(3) If the sum insured is less than the insurable value, the insurer shall be liable for the damages in proportion of the sum insured and the insurable value.
(4) If the sum insured is higher than the insurable value, the marine insurance contract shall have no effect for the surplus.
(5) The insurer shall preserve his right in the premium according to the declared sum insured.

Insurance Premium
Art. 267. (1) The insuring party shall be obliged to pay the premium immediately after conclusion of the contract, and if a policy is issued, simultaneously with the receipt of the policy, unless a term for its payment is specified.
(2) Until payment of the premium, and if the contract provides for payment by instalments, until payment of the first instalment, the marine insurance shall have no effect.
(3) If the insuring party delays the payment of the premium or subsequent parts thereof, the insurer shall not be due an indemnity, if the risk occurs after the delay. If, however, the insuring party pays the delayed premium or the delayed instalment thereof and the risk occurs after performance of the payment, the marine insurance shall remain in force.

Increase of the Risk
Art. 268. (1) The insuring party shall be obliged, immediately after becoming familiar, to notify the insurer of any circumstances, leading to substantial increase of the risk, substantial delay of sending the cargo, deviation of the determined or the usual road, changes in the method of carriage, the place of re-loading, the destination of the cargo and discharging, leaving the ship for the winter, not specified in the contract.
(2) The deviation of the route, due to circumstances, independent of the carrier, or performed with the aim to save a human life or property or found to be necessary for the safety of the ship, shall not be deemed an increase of the risk

Termination of the Contract Due to Increase of the Risk
Art. 269. (1) If the increase of the risk has occurred through no fault of the insuring party, the marine insurance shall remain in force, but the insurer shall be entitled to claim payment of additional premium, proportionally to the increase in question.
(2) If the insuring party does not agree with the amendment of the contract referred to in the preceding Paragraph in the specified or the usual term for an answer, the contract shall be terminated in the moment, in which the circumstances increasing the risk have occurred.
(3) In the cases under Para 2 the insurer shall be obliged to return a part of the premium.
(4) If the increase of the risk is due to the behaviour of the insuring party, the insurer may terminate the contract and keep the premium, if not preferring payment of the respective additional premium.
(5) The insurer may terminate the contract also in the cases, when the insuring party has not sent to him a timely notification of the occurrence of the circumstances, leading to increase of the risk. He may exercise this right within seven days from the day, when he has learned, that the insuring party has incurred a delay to notify him of the risk. If he misses the term in question, the insurer may claim respective increase of the premium. If, however, the insuring party refuses to pay the additional premium, the insurer may terminate the contract.
(6) If the insuring party sends the notification of the circumstances, increasing the risk, in time, the insurer, provided that the conditions for terminating the contract are present, shall declare his decision for termination within seven days. If this term is missed, he may claim only payment of a respective additional premium.
(7) If the insurer exercises his right to terminate the contract because of increase of the risk, he shall be liable for the damages, arising of this termination.
(8) In the cases under the preceding Paragraph the insurer shall retain his right in the respective part of the premium.

Refusal of Indemnity in Case of Increase of the Risk
Art. 270. If the insuring party does not send the notification of the circumstances, increasing the risk, in time and the damages are incurred because of these circumstances, the insurer shall not be due an indemnity, unless he has become aware of the increase of the risk in advance and has exercised his right to terminate the contract according to the order referred to in Art. 269, Para 5.

Obligations of the Insurer
Art. 271. (1) The insurer shall cover the risks, specified in the contract.
(2) He shall be obliged to pay the direct damages of the occurrence of this risk within the amount of the sum insured.
(3) The insurer may not be exempt from the obligation to compensate the damages, even when they are caused by third persons, against whom the insuring party or the insured are not entitled to claim indemnity.

Successive Damages and Partial Damages
Art. 272. If the insured subject-matter is affected by successive occurrence of risks, covered by the marine insurance, the insurer shall be due an indemnity for the damages, caused by each one of them, even if their total sum exceeds the sum insured.

Excluded Damages
Art. 273. (1) The insurer shall not be liable for the damages, even though caused by risks, covered by the insurance, if their occurrence is due to intention or gross negligence of the insuring party or an insured consignee or shipper, as well as of their representatives. The master and the crew shall not be deemed representatives of the shipowner.
(2) The above rule shall not apply in respect of insured ships or cargoes, if the damages are due to navigational negligence.
(3) The insurer shall not be liable for damages arising of stipulated damages under sale and other contracts, demurrage, delays, omissions, changes of prices and fees, currency differences, interests, etc., as well as for any indirect damages.
(4) The insurance shall not cover the usual expenses, related to the sailing itself, wintering and quarantine.

Excluded Damages for a Ship
Art. 274. (1) In case of insurance of a ship the insurer shall not be liable also for the damages, arising of the fact, that the ship was sent in unseaworthiness, unless this is due to latent deficiencies.
(2) The insurer shall not be liable also for the damages, arising of loading on the ship explosive, inflammable and other dangerous cargoes or substances without his knowledge or without the knowledge of his representative.

Notification of Occurrence of the Risk
Art. 275. If a risk, covered by the insurance, affects the subject-matter insured, the insuring party shall be obliged to immediately notify the insurer, as well as to undertake the measures referred to in Art. 282.

Missing Ship
Art. 276. (1) If the ship is missing (Art. 42), the insurer shall be due an indemnity in amount within the sum insured.
(2) In respect of the insurances for a certain term the insurer shall be due an indemnity for a missing ship, if the last news of the ship were received before expiration of the term of the insurance and unless the insurer proves, that the ship is lost after expiration of this period.

Establishing the Actual Value
Art. 277. The insurer may request that the actual value of the insurable interest is established, unless it is specified in an explicit clause in a mutual agreement with the insuring party at the conclusion of the contract.

Amount of Indemnity
Art. 278. (1) The insurance indemnity may not exceed the sum insured within the margins of the insurable value. The insurer shall be obliged to cover also the expenses for preventing or limiting the damages, caused by the covered risk (Art. 282), as well as the instalments for the general average, even if they, together with the indemnity, exceed the sum insured.
(2) (revoked – SG 113/02)

Limited Liability within the Sum Insured
Art. 279. (1) After occurrence of the insurance risk the insurer may be exempt of other obligations under the contract, including those under Art. 282, by paying the sum inured.
(2) The insurer may exercise his right referred to in the preceding Paragraph, if he notifies the insured (the insuring) party thereof before expiration of seven days from the day, in which he has received the last notification of the occurrence of the risk and the consequences thereof.
(3) The payment of the entire sum insured shall not exempt the insurer of the obligation to recover in favour of the opposite party the expenses on establishing the damages, as well as the expenses made by it under Art. 282 before receiving the notification of the insurer under the preceding Paragraph.
(4) The insurer, limiting his liability within the amount of the entire insured sum paid, shall not acquire any rights in the insured property.

Indemnity by Payment of Repair
Art. 280. (1) In case of insurance of a ship, unless otherwise stipulated in the contract, the insurer may assign the repair of the damages, caused by the risk, by incurring the expenses thereof, instead of paying the indemnity in cash.
(2) If the repair lasts longer than the time, in which the damages could be repaired, the insurer shall be due damages and losses for the delay.

Security for General Average Instalments
Art. 281. If requested by the insuring party or the insured, the insurer may provide a security for general average instalments within the amount of the sum insured.

Expenses for Preventing and Establishing the Damages
Art. 282. (1) If the risk, covered by the insurance, occurs, the insuring party shall be obliged to take all prudent measures depending on him, which are necessary for saving the insured subject-matter and for preventing or limiting the damages, as well as for securing the claims for indemnity against the persons, who have caused these damages.
(2) If he receives instructions by the insurer in response to the notification for occurrence of the risk, sent by him, the insuring party shall be obliged to take the measures, noted in the instructions.
(3) The insurer may undertake actions for saving and protecting the insured subject-matter or for preventing or limiting the damages by himself.
(4) (amend. - SG 113/02) The actions of the insurer under Para 2 and 3 shall not prejudge the issue on the right of the insured to be indemnified, but the expenses related thereto shall be incurred by the insurer.
(5) The insurer shall be obliged to restore the necessary expenses, incurred by the insuring party (the insured) for preventing and limiting the damages he shall indemnify, including the expenses, made according to his instructions.
(6) The provision of the preceding Paragraph shall not apply to the expenses for establishing the losses, arising of occurrence of a risk, covered by the insurance, including drawing up a general-average statement.
(7) The insurer shall not be liable for indemnifying the damages, arising of the fact, that the insured (the insuring party) deliberately or due to gross negligence does not take the measures under Para 1 and 2.
(8) If the sum insured is less than the insurable value, the expenses referred to in Para 1 and 2, incurred by the insuring party, shall be restored according to the proportion between the sum insured and the insurable value.

Indemnity and Possession of the Insured Subject-Matter
Art. 283. Except in the cases referred to in Art. 279, after paying the entire sum insured, the insurer shall acquire all rights in the insured subject-matter, but when the sum insured is less than the insurable value, the insurer shall be entitled to request the respective proportional part to be delivered to him.

Abandonment of the Insured Subject-Matter
Art. 284. (1) The insuring party may claim payment of the entire sum insured by renouncing his rights in the insured subject-matter in favour of the insurer.
(2) When subject-matter of the insurance are cargoes, the provision of the preceding Paragraph shall apply, only if the parties have stipulated this in the contract.
(3) The cases, in which the insuring party may perform the renouncement, shall be:
1. missing ship;
2. total actual loss of the ship;
3. total constructive loss of the ship, i. e., where the loss is inevitable or the salvage of the ship or her repair would cause expenses, disproportionally high in comparison with the sum insured;
4. seizure or confiscation of the ship, when the insurance covers war risks and capture by pirates, if these circumstances last for more than two months.

Notice of Abandonment
Art. 285. (1) The notice of abandonment shall be performed in writing within 6 months from the day, in which the terms under Art. 276 and 284 expire.
(2) In the notice of abandonment the insuring party shall be obliged to inform the insurer, whether the subject-matter of the insurance is burdened with real rights and distraints in favour of third persons and whether other insurances exist for it.
(3) If the insuring party does not perform the abandonment within the term referred to in Para 1, he may claim insurance indemnity on general grounds.

Rejection and Revocation of the Abandonment
Art. 286. (1) The insurer may reject the request for abandonment of the insured subject-matter, if there are no grounds for performing it, as well as in the cases, when the insuring party breaches his obligations under Art. 288, Para 2 and 3.
(2) If the insurer establishes, after receiving the notice of abandonment, that the ship is not lost, he may request from the insuring party back the insurance indemnity, if paid to him. In this case the insuring party may keep only the indemnity for partial damages, if incurred by the ship, due to a risk, covered by the insurance.

Effect of the Abandonment
Art. 287. (1) The rights in the insured subject-matter shall pass to the insurer from the day, in which he accepts the notice of abandonment, or after expiration of 30 days after he has received the notice of abandonment and has not rejected it explicitly.

Subrogation of the Insurer in the Rights against Third Parties
Art. 288. (1) The insurer, after paying the indemnity, shall be subrogated to the rights of the insuring party or the insured against third parties for payment of damages and losses.
(2) If the insuring party has renounced his rights to claim damages and losses against third parties, who have caused the damage, covered by the insurance, or has made impossible their realization through his fault, the insurer may refuse to pay the insurance indemnity totally or for the respective part.
(3) The insuring party or the insured shall be obliged to deliver to the insurer all documents and other evidence and to inform him of all facts, which are necessary to realize the rights against third parties, to which he shall be subrogated.

Deduction of the Indemnity from a Third Party
Art. 289. (amend. - SG 113/02) If the insuring party or the insured receives indemnity for the damages, caused by third parties, the insurer shall be obliged to pay him only the difference between the sum, subject to payment according to the contract, and the sum, received from the third party.

Chapter eleven.
AVERAGE
Definition of General Average
Art. 290. (1) (amend. - SG 113/02) A general average shall be deemed the damages, the extraordinary expenditure or sacrifices intentionally or reasonably made for saving the ship, the freight and the cargo from common peril for the participants in the common maritime adventure.
(2) An extraordinary expenditure, made instead of an expenditure pertaining to the general average expenditure, shall be deemed a general average, but only within the amount of the avoided expenditure. Any additional expense incurred in place of another expense which would have been allowable as general average shall be deemed to be general average, but only up to the amount of the expense avoided.
(3) (amend. - SG 113/02) The following provisions shall apply in the cases, where nothing has been stipulated between the parties by virtue of a contract.
(4) (amend. - SG 113/02) Only such losses, damages or expenses which are the direct consequence of the average act shall be allowed as general average.
(5) (amend. - SG 113/02) As general average shall not be deemed:
1. losses, damages or expenses incurred in relation to remedying damages to the environment, or in consequence of escape or release of pollutant substances from the property involved in the common maritime adventure;
2. demurrage, loss of market or sustained damage, or expense incurred by reason of delay, during the voyage or afterwards;
3. any indirect loss.

Components of the General Average
Art. 291. As general average under the conditions of Art. 290 shall be allowed especially:
1. (amend. - SG 113/02) damages, arising of jettison of cargo or ship's equipment off board, and also any loss or damage, caused to the property, included in the common maritime adventure, when measures for their saving as a whole are taken, especially as a result of penetration of water in the holds through the hatches opened for jettison of the cargo or through other openings made therefore.
2. (suppl. - SG 113/02) damages, caused to the ship or the cargo when extinguishing fire on board the ship, including the damages of sinking of the burning ship or of jettison of property from the burning ship on the coast;
3. the damages, caused to the ship or the cargo of intentional stranding of the ship;
4. the damages of damaging the engines and other machinery or the boilers of the ship, caused during the attempts to release the ship of being stranded;
5. extraordinary expenses made when the ship is stranded, related to the overloading of the ship, the fuel or the objects of the ship's supply by the ship of other vessels, for rental of the latter and for the reloading on the ship;
6. the losses of damaging and destruction of cargoes, fuel or stores, caused by their moving, discharging and reloading and stowage on the ship, as well as for their storage in the cases when the expenses for performing these activities are recognized as a general average;
7. the value of the ship's materials or stores necessarily used for fuel, by deducing the estimated cost of the fuel which would otherwise have been consumed. The value of this fuel shall be determined according to the market price on the day of departure from the port of departure or at the last port visited;
8. the expenses made with the purpose to receive help, and also the damages caused to the ship or the cargo by the ships rendering help;
9. the loss of the freight, resulting of the loss of the cargo, shall be made good as general average, by excluding from its freight the expenses which would be made by the carrier for the realization of the freight, but which were not made because of the sacrifices.

Expenses Admitted as General Average
Art. 292. As general average shall be also referred or admitted:
1. the expenses, caused by compulsory call of the ship to the place of refuge or her returning to the place of loading in consequence of accident or any other extraordinary circumstance which render the necessity of deviation or returning in order to avoid general average;
2. the expenses related to leaving the place of refuge or the place of loading in case of compulsory returning by the ship with the cargo or a part of it ;
3. the expenses on handling or discharging cargo, fuel or stores at the place of loading, call or refuge, when the handling or discharge was necessary in order to avoid the common threat or to enable damages to the ship caused by accident or other extraordinary circumstances to be repaired, if the repairs were necessary for the safe prosecution of the voyage;
4. the expenses for reloading and stowage of cargo, fuel and stores, discharged under the circumstances noted in the preceding Item of this Art., as well as all expenses for protecting them, including their insurance if incurred;
5. the expenses for wages and maintenance of crew of the ship, stores and fuel consumed during the prolongation of the voyage, resulting of the deviation of the ship to the place of refuge or returning to her place of loading in the cases referred to in Items 1 and 3 of this Art.;
6. the expenses for wages and maintenance of crew of the ship, arising of the compulsory deviation or extra arrest of the ship in any place in consequence of accident or other extraordinary circumstances which render that necessary to avoid a common threat or to enable damage caused by the indicated circumstances to be repaired, if the repairs were necessary for the safe prosecution of the voyage. The expenses for fuel, stores and port charges incurred during the arrest shall likewise be admitted as general average except such expenses as are incurred solely by reason of repairs not allowable in general average;
7. the expenses specified from Items 1 to 6, if not arising of the transfer of the ship from the place of refuge to another place, because of impossibility to make the repair at the place of refuge;
8. the value of the temporary repairs of the ship at the place of loading, call or refuge, for common safety, as well as the temporary repairs of damage admitted as general average. The value of the temporary repair of the accidental damage necessary only to complete the voyage, shall be allowed only up to the amount of these preliminary expenses, which would be admitted as general average if such repairs had not been effected there, regardless of the saving resulting of it made by any of the participants in the general average;
9. (new – SG 113/02) seven percent annual interest on expenditure, sacrifices and allowances admitted as general average; the interest shall be calculated until three months after the day of issue of the general average adjustment, due allowance being made for any partial payment on account by the contributory interests or from the general average deposit fund.

Unseaworthiness and Rejection of the Voyage
Art. 293. In the cases where the ship is considered unfit for sailing or refuses to continue the voyage, to the expenses for a general average shall be referred only those, made for preservation, payment of the wages of the crew and its maintenance (Art. 291, Items 1-6) to the moment of acknowledging the ship to be unfit and her refusal to continue the voyage. In the cases, where the ship is unfit for sailing or refuses to continue the voyage before the end of the discharge of the cargo, all the expenses made before the end of the discharge shall be referred to the general average.

Damages, Excluded of the General Average
Art. 294. Even under the presence of the circumstances specified in Art. 290 of this Code, as a general average shall not be deemed:
1. the value of the jettisoned self-inflammable cargo and the cargo transported on the ship which is non-compliant with the customs recognised in the marine trade;
2. (amend. - SG 113/02) the damages caused by the smoke in case of fire in any possible way, as well as the losses by the heat of fire in the parts of the ship and the cargo affected by the fire;
3. the damages resulting of cutting away wrecks of the ship or other facilities carried away by the sea element;
4. the damages caused by speeding up or other work of the machinery, the other engines or the boilers of the ship, which is afloat but stranded;
5. the damages caused by voluntary stranding of the ship in a shoal under circumstances, which would cause the stranding regardless of the undertaken measures; however, the losses caused of setting such ship afloat under the presence of the conditions referred to in Art. 290 shall be admitted as general average;
6. any damages or damages, incurred by the ship or the cargo, resulting of the prolongation of the voyage, such as stays and commercial losses.

Adjustment
Art. 295. (1) The general average shall be adjusted between the ship, the cargo and the freight, proportionally to their actual value at the place and at the time of completion of the voyage.
(2) The general average shall be adjusted according to Para 1 also when the peril, causing the extraordinary sacrifices or expenses, has occurred through the fault of any of the participants in the general average or of a third party. The adjustment of the damages shall not deprive the participant in the general average of his right of regress claim against the person through the fault of whom the damages are caused.
(3) Adjustment of the damages allowed in general average, shall be performed also when the activities carried out in relation to the general average have not achieved the desired results.
(4) (new – SG 113/02) When the ship is located in a place or in a port under circumstances, which may be valid grounds for claiming indemnity for general average, and the cargo or a part thereof are sent to their destination by another vehicle, the rights and obligations in the general average shall be preserved. These rights and obligations shall be as close as possible to those, which would have existed without such sending.
(5) (new – SG 113/02) The share, determined to the cargo for the general average indemnity, according to Para 4, shall not exceed the expenses, which would be incurred by the owners of the cargo, if the cargo was sent at their expense.

Extent of Allowance for the Ship
Art. 296. (1) The extent of the general average allowance for damage to the ship, her machinery or equipment shall correspond to the actual value of the repair of the damaged or replaced parts, but cannot exceed the usual value of the repairs or the replacement of the parts. In the cases, where old materials or parts are substituted with new, "new for old" deductions shall be made from this value.
(2) From the value of the temporary repairs of the ship, allowed in general average, "new for old" deductions shall not be made.
(3) Where no repair has been made, the respective decrease of the value of the ship, which may not exceed the normal repair value, shall be taken into consideration.
(4) In the cases of actual or total constructive loss of the ship, the sum intended for a general average allowance of a damage of the ship, shall be calculated on the basis of the assessment of the ship in undamaged condition, by deducing from it the usual value of the repairs, which are not deemed a general average, and the sums, received from the sale of the ship, if she was sold.

Extent of Allowance for Cargoes
Art. 297. (1) The loss allowable as general average, resulting of damage or loss of the sacrificed cargo, shall be determined according to the price of the cargo on the day of arrival of the ship at the cargo destination.
(2) If the ship has not arrived at the port of the cargo destination, the allowable loss shall be determined according to the price of the cargo at its destination port on the day of discharge or jettison of the cargo.
(3) In case of sale of the damaged cargo, the allowance shall be determined by the difference between its value and the sum, received of its sale, unless the amount of the damage was stipulated in other way.

Salvage Expenses
Art. 297a. (new – SG 113/02) (1) The salvage expenses, incurred by the parties in the maritime adventure, regardless of whether they have been stipulated by them, shall be allowable as general average, if the salvage operations have been undertaken to protect the property involved in the common maritime adventure from peril.
(2) The expenses allowable as general average shall include any salvage remuneration, where the skills and the efforts of the rescuers for preventing or reducing the damages on the environment shall be taken in consideration.
(3) The special compensation paid to the rescuer by the shipowner shall not be allowable as general average.

Expenses for Damages, Caused to Machines and Boilers of a Ship
Art. 297b. (new – SG 113/02) The damages, caused to the machinery and boilers of a ship resting in shallow water or in dangerous position, in the efforts to set the ship afloat shall be allowable as general average, if they are proved to have arisen of the actual intention to set the ship afloat with a view of the the general safety and a risk of such damages. The losses or damages caused of the functioning of the engine machinery and the boilers shall not be allowable as general average, if the ship has been afloat.

Expenses for Discharging a Stranded Ship and Resulting Damages
Art. 297c. (new – SG 113/02) In the cases where the cargo, the ship's fuel or the stocks of a ship resting in shallow water are discharged as a general average act, the additional expenses for discharging, hiring lighters and reloading (if incurred), as well as any losses or damages of property involved in the common maritime adventure as a result of the above activities, shall be made good as general average.

Calculation of the Allowance
Art. 298. (1) 2 % on general average disbursements (other than the wages and maintenance of the crew, the value of the fuel and the stores not replaced during the voyage) shall be calculated in favour of the party, which has incurred the disbursements. As general average shall be allowable also the necessary expenses for raising funds by loan or in other way, and also the loss incurred by the owner of the cargo sold to raise funds.
(2) The sums insured, by which general average expenses are being advanced, shall be also admitted in general average.

Exempt Cargoes
Art. 299. The damages incurred by damaging or loss of the cargo loaded on the ship without the knowledge of the shipowner or which was wrongfully declared at the reception for carriage shall not be allowed as general average. Such cargo, if saved, shall remain liable to contribute to the general average according to the general rules.

Losses of a Cargo with Declared Value
Art. 300. The damages, arising of loss or damaging of the cargo, the value of which at the reception for carriage was declared to be less than the actual value, shall be calculated in the general average according to the declared value. The obligations weighing on this cargo, arising of the participation in the general average, shall be apportioned according to the actual value of the cargo.

Determining the Total Value of the Properties
Art. 301. (1) (amend. - SG 113/02) The total value of the properties, involved in the contribution to the general average (contributory value), shall be determined according to the actual net value of the properties at the termination of the voyage by adding to this sum the amount made good as general average for property sacrificed, if not already included. Additionally the sum of the freight and passage money the risk of which is held by the shipowner shall be deduced from the expenses and the wages of the crew for the voyage, which could not be paid by the carrier, when the ship or the cargo are lost under circumstances admitted as general average and which, as a result thereof, have not been allowed as general average.
(2) All expenses admitted as particular average, which have been made in relation to this property after announcing the general average, shall be deduced from the value of the properties.
(3) (amend. - SG 113/02) The value of the baggage and the personal Art.s of the passengers shall not be included in the contributory value.

General-Average Adjusters. Voluntary Arbitration
Art. 302. (amend. - SG 113/02) (1) The establishment of general average, expenses, sacrifices related to it and the adjustment between the ship, the cargo and the freight shall be performed by means of a general-average statement upon request of the interested persons.
(2) The legal capacity of a "genera-average adjuster" shall be obtained under conditions and order determined in the ordinance referred to in Art. 310.
(3) The type of the average shall be established in a decree of the average adjuster, which may be contested before a voluntary arbitration when such was stipulated by the parties in the bill of lading. If the parties have stipulated a voluntary arbitration, they may contest the decree of the average adjuster within 30 days from its announcement in the State Gazette. The submission of the claim shall suspend the general-average statement proceedings. The arbitration decision shall be final and shall settle the dispute. It may be revoked according to the order of the Law on the International Commercial Arbitration.

Customs Application 
Art. 303. (amend. - SG 113/02) In case of lack of agreement or omissions in the law the average adjuster, when determining the type of the average, calculating the amount of the general average and making up the general-average statement, shall be guided by the international customs of the merchant shipping.

Onus of Proof
Art. 304. (1) The parties claiming in general average shall bear the onus of proof that the claimed damages or expenses are properly allowable as general average.
(2) All materials, on the basis of which the general-average statement shall be drawn up, shall be at the command of the average adjuster and the latter shall be obliged to issue copies of these materials certified by him upon request of the interested persons.
(3) (new – SG 113/02) All parties claiming in general average shall notify the average adjuster in writing of the incurred losses or expenses within 12 months from the date of completion of the common maritime adventure.
(4) (new – SG 113/02) In the cases where the claiming parties fail to notify the average adjuster or fail to supply evidence supporting their claim within 12 months from the request of such notification, the average adjuster shall be entitled to estimate the extent of the allowance or the value of the contributory interest on the basis of the available information. The estimate may be changed only on the ground that it is manifestly incorrect.

Fees for the Average Adjuster
Art. 305. A fee shall be collected for drawing up the general-average statement, which shall be included in the account of the general average and shall be adjusted among all interested persons proportionally to their share contribution in the general average.

Contesting the General-Average Statement
Art. 306. (amend. - SG 113/02) (1) The interested persons may contest the general-average statement filing claims before the Sofia City Court within one month of the announcement in the State Gazette for the finalization of the general-average statement if the general average has occurred in cabotage sailing, and within six months if occurred in transborder sailing.
(2) When the parties have stipulated arbitration in the bill of lading, the contest of the general-average statement shall be made before an arbitration court within the terms referred to in Para 1. The arbitration decision shall be final and shall settle the dispute. It may be repealed under the order of the Law on the International Commercial Arbitration.

Finalization of the General-Average Statement
Art. 307. The writs of execution based on the general-average statements in force shall be granted to the interested persons by the Sofia City Court under the order of the Civil Procedure Code.

Retention
Art. 308. (amend. - SG 113/02) The carrier may refuse to deliver the cargoes or to deliver them for warehouse storage until making a deposit or provision of a guarantee for the instalment for the cargoes.

Particular Average
Art. 309. (1) As particular average shall be admitted all damages to the ship, the cargo or the freight, which are not general average.
(2) The damages admitted as particular average, shall be incurred by those who have suffered them, or by the person, responsible for their occurrence.

Order of Establishing Damages
Art. 310. (amend. - SG 41/01; amend. - SG 87/05; amend. - SG 85/10) The order of establishing the damages made good as general or particular average, their apportionment and s. o. shall be determined in an ordinance by the Minister of Transport, Information Technologies and Communications and the Minister of Justice.

Chapter twelve.
COLLISIONS OF SHIPS
Scope of Application
Art. 311. (1) (amend. - SG 113/02) The provisions of this Chapter shall apply to collisions between ships, as well as between ships and seaplanes, other vessels or anchored facilities.
(2) The same provisions shall apply also when the damages are caused by a ship to another one or to persons, cargoes and other properties on her, because of performance or non-performance of a manoeuvre or as a result of non-observance of the rules of shipping, even when no collision has followed.

Consequences of Collision without Fault
Art. 312. (1) In case of collision caused by accidental event, force majeure or if the cause of the collision may not be established, the losses shall be incurred by the ship, which has suffered them.
(2) The provision of Para 1 shall apply also when the ships or one of them have been anchored at the moment of the collision or moored in other way.

Fault for the Collision
Art. 313. (1) In case of collision caused by improper actions or omissions of one of the ships, the losses shall be incurred by the ship through the fault of which the collision has happened.
(2) (amend. - SG 13/02) There is a fault, when the ship, which has caused the collision:
1. does not meet the requirements of seaworthiness;
2. is not duly equipped with radio and navigational means, technical facilities and crew;
3. does not comply with the provisions of the International Regulations for Preventing Collisions at Sea or the provisions of the Regulations on Navigation on the Danube;
4. has not taken into consideration the specific navigation conditions in the region of sailing;
5. has not taken into consideration the instructions given to him by a competent authority or by the crew of the other ship (the other ships) or sailing facility;
6. has not acted in compliance with the good seafarer practice.

Collision through the Fault of Several Ships
Art. 314. (1) If the collision has happened through the fault of several ships, each of them shall be liable proportionally to the degree of their fault for the damage, caused to the rest of the ships or to the property on them. If the degree of the fault is equal or it cannot be established, the ships shall be liable equally.
(2) In respect of the damages, resulting of the death, the personal injury or the health disorder the ships with the fault for the collision shall be jointly liable. The ship, which on the basis of the joint liability has paid a part larger than his duty, shall be entitled to regress claim against the rest of the ships for the overpaid sum.

Collision through the Fault of the Pilot
Art. 315. The rules of Art. 312, 313 and 314 shall apply also to the cases, where the collision has happened through the fault of the pilot, even though the use of his services was compulsory.

Obligations of the Masters
Art. 316. (1) The master of each of the collided ships shall be obliged to render assistance to the other ship, her crew and her passengers, if possible without serious danger for his ship, crew or passengers.
(2) (suppl. - SG 113/02) The masters of the collided ships shall be obliged to notify each other of the names of their ships, the home port, the place of departure and the destination of the ship, and to notify immediately the Executive Agency "Maritime Administration" of the event.
(3) For infringement of the above rules the master shall bear the responsibility established by the laws.
(4) The shipowner shall not be liable for non-performance of these obligations by the master.

Applicability of the Provisions to War Ships
Art. 317. (1) The provisions of this Chapter shall apply respectively to ships flying navy flags.
(2) The ships, referred to in the preceding Paragraph, shall not be liable for the damages, caused to other ships in case of collision or other activities during performance of official tasks within the borders of the training grounds and the regions, declared to be dangerous for sailing. This shall not exempt the masters of these ships from the obligations, specified in this Chapter, for rendering the necessary assistance or to announce the information referred to in Art. 316 in a degree, determined under the established order.

Chapter thirteen.
SALVAGE (TITLE AMEND. - SG 113/02)
Scope of Application (title amend. - SG 113/02)
Art. 318. (1) (amend. - SG 113/02) The provisions of this Chapter shall apply to salvage and assistance of ships and other sailing or anchored crafts in danger on sea, in river or in other waters.
(2) The rules of this Chapter shall apply also to ship, flying a navy flag.

Salvage Reward
Art. 319. (1) (amend. - SG 113/02) Any activity having useful results of rendering help or salvage of a ship in danger, of cargo located on her or originating from her or other Art.s, as well as for preserving the freight and the price for the transported passengers shall give right to the salvor to a fair reward.
(2) The reward shall be paid also in the cases, where the ship undertaking the salvage operations and the salved ship belong to the same owner.
(3) No reward shall be due if the assistance or the salvage operations have had no useful result.
(4) The crew of the ship in danger shall not be entitled to a reward.

Salvage under a Towage Contract
Art. 320. The salvors who have rendered services notwithstanding the express and reasonable prohibition of the master of the ship in distress, as well as the salvage operations arising of the towage contract shall not be entitled to a reward.

Salvage of Persons
Art. 321. The salved persons shall not be due a remuneration for their salvage. The salvors of persons shall be entitled to a fair share of the common reward for the salved property equally to the salvors of the property, when the salvage of persons was carried out in relation to the accident which had called the salvage of the property.

Amount of the Reward
Art. 322. (1) The amount of the reward shall be determined in an agreement between the parties, and when there is no such agreement – by the court or the arbitration.
(2) Any salvage agreement, concluded in the moment and under the influence of the danger, may be declared void or amended by the court or the arbitration, if the terms of the agreement are found to be unfair.

Fixing the Reward
Art. 323. (1) The court and the arbitration shall fix the reward according to the circumstances, taking into account:
1. the results of the salvage;
2. the efforts and merits of the salvors;
3. the danger to which the salved ship and her passengers, crew and cargo were exposed;
4. the danger to which the salvage ship, her equipment and salvors were exposed;
5. the time used by the salvors in the salving operations;
6. the expenses and damages incurred by the salvors;
7. the possible liability by the salvor before third parties and other risks;
8. the value of the equipment and the materials used for salvage belonging to the salvor;
9. the special designation of the salvor's ship.
(2) Besides this, the value of the salved property shall be taken into account.

Maximum Amount of the Reward
Art. 324. The reward shall not exceed the value of the salved property.

Conditions on Reducing the Reward
Art. 325. The reward may be reduced or entirely cancelled if the salvage operations have become necessary because of fault of the salvor or he has committed a theft, embezzling or other fraudulent conduct.

Value of the Salved Property
Art. 326. The value of the salved property shall be determined by its assessment at its location after the salvage, and if sold – by the price received, deducting in both cases the fees and customs established, as well as the expenses on discharge, storage and assessment or on sale of the property.

Apportionment the Reward Between Several Salvors
Art. 327. The apportionment of the reward between several salvors shall be made on the basis of an agreement between them, and if there is no such agreement – upon the decision of the court or the arbitration.

Apportionment of the Reward Between the Shipowner, the Crew and Other Rightholders
Art. 328. (amend. - SG 41/01) (1) The apportionment of the reward between the shipowner, members of the crew and other rightholders shall be made after deducting the expenses and damages incurred in the salvage.
(2) (amend. - SG 87/05; amend. - SG 85/10) A half of the remaining sum shall be assigned to the shipowner and the other half – to the master, the rest of the members of the crew and the other rightholders according to an ordinance of the Minister of Transport, Information Technologies and Communications.
(3) The provisions on the employment remunerations, additional remunerations, bonuses, etc., as well as on taxes shall not apply in respect the amount of the rewards in question.

Chapter fourteen.
RAISING OF SUNKEN PROPERTY
Scope of Application
Art. 329. (amend. - SG 41/01; amend. - SG 113/02; amend. - SG 87/05; amend. - SG 85/10) Any property (ships, parts of ships, objects of ship equipment, cargoes, etc.) sunken in the territorial sea, the inland maritime waters and the inland waterways of the Republic of Bulgaria (in this number property washed ashore or onto banks) shall be subject to raising and removal pursuant to conditions and order, determined in an ordinance of the Minister of Transport, Information Technologies and Communications.

Raising of Sunken Property by the Owner
Art. 330. (amend. - SG 41/01) (1) (amend. - SG 113/02) Any owner of sunken property intending to raise this property shall notify the Executive Agency "Maritime Administration" thereof within one year of sinking of the property.
(2) (amend – SG 113/02) According to the circumstances, the Executive Agency "Maritime Administration" shall determine a sufficient term for raising and the order of performing the raising operations, notifying the owner thereof.

Compulsory Raising of Sunken Property
Art. 331. (amend. - SG 41/01) (1) (suppl. - SG 113/02) If sunken property poses a danger or obstacle to shipping or threatens the environment, the maritime industry, hydro-technical or other activities, the owner of the property shall be obliged to raise pursuant to orders of the Executive Agency "Maritime Administration" within the term specified by it.
(2) (amend. - SG 113/02) If the owner of the sunken property is unknown, the Executive Agency "Maritime Administration" shall make a single publication in the State Gazette regarding the term specified for raising the sunken property. If the Executive Agency "Maritime Administration" is familiar with the nationality of the owner of the sunken property, it shall notify also the relevant administration of the state of the flag.

Raising by the Executive Agency "Maritime Administration" (title amend. - SG 113/02)
Art. 332. (amend. - SG 41/01) (1) (amend. - SG 113/02) The Executive Agency "Maritime Administration" may not allow the owner of the sunken property to raise it using means of his own or using means of natural or legal persons chosen by him. In such cases, the raising of the property shall be carried out by the bodies of the Agency at the expense of the owner of the property.
(2) (amend. - SG 113/02) In the cases under Art. 331, Para 1 the Executive Agency "Maritime Administration" shall have the right to apply the necessary measures to have the sunken property raised immediately, removed in other manner or, if necessary, to have it destroyed.

Delivery of the Raised Property
Art. 333. (amend. - SG 41/01) (1) The property raised or removed by the Executive Agency "Maritime Administration" in compliance with the provisions of Art. 332, Para 1 and in the cases of direct danger for the shipping shall be delivered to its owner after payment of the amount of the expenses for raising (removal) and the other damages incurred in relation thereto, provided that one year at most has passed from the moment of raisin the property.
(2) (revoked – SG 113/02)

Sale of Raised Property
Art. 333a. (new – SG 113/02) (1) The Executive Agency "Maritime Administration" shall invite the owner or the insurer of the sunken property to pay the expenses for the raising and to receive their property within 14 days.
(2) When the owner is unknown, does not appear or refuses to pay the expenses after expiration of the 14-day term, the Executive Agency "Maritime Administration" shall undertake sale of the property by auction with advertised bidding.
(3) (amend. - SG 87/05; amend. - SG 85/10) Where preservation of the raised property is impossible or inexpedient, the Executive Agency "Maritime Administration" shall be entitled to sell the property pursuant to conditions and order, determined in an order of the Minister of Transport, Information Technologies and Communications and the Minister of Justice.
(4) The amount received from the auction shall go to the budget of the Executive Agency "Maritime Administration".

Consequences of the Failure to Raise
Art. 334. Any owner of sunken property who has not filed an application or does not raise hi property within the term specified in Art. 330 and 331 shall lose his rights in it.

Reward for Unintentionally Raised Property
Art. 335. (amend. - SG 113/02) In cases the sunken property is raised unintentionally the person who has raised it shall be obliged to hand it over to the closest territorial unit of the Executive Agency "Maritime Administration". This person shall be entitled to a reward in amount of 1/3 of the value of the raised property.

Military Property
Art. 336. (amend. - SG 41/01; amend. - SG 113/02; amend. - SG 87/05; amend. - SG 85/10) Raising of objects which constitute military property shall be carried out by the competent services of the Ministry of Defence. When these properties are located in the territorial sea and the internal waters of the Republic of Bulgaria, the raising shall be made in coordination with the Minister of Transport, Information Technologies and Communications.

Raising of Sunken Property in Regions Forbidden for Sailing
Art. 337. (amend. - SG 41/01) Raising of property sunken in regions, where the sailing of ships is prohibited in compliance with the legislation on preserving the state borders of the Republic of Bulgaria, shall be made pursuant to the provisions of this Chapter, provided that a permission for raising has been granted by the Ministry of Defence.

Chapter fifteen.
LIMITED LIABILITY OF THE SHIPOWNER
Cases of Limited Liability
Art. 338. The shipowner shall have a limited liability for:
1. damages caused to third parties by the master of the ship, by other members of the crew, by the pilot and by any other person, in service on the ship in performance of their duties;
2. damages caused to the cargo received for carriage or to other property on the ship;
3. damages arising of non-performance or bad performance of the contract for maritime carriage of cargo;
4. reward for rendering assistance;
5. the apportionment duties in case of general average in respect of the part due by the shipowner;
6. (amend. - SG 113/02) duties related to raising, carrying, storage, removal or destruction of sunken property, as well as the duty for payment of damages caused to port facilities, port basins and sailing waterways;
7. the duties based on the activities performed by the master without special authorization by the shipowner but by virtue of his general legal powers in order to preserve the ship or to continue the voyage, even if these activities were caused by insufficient or inappropriate equipment or supply prior to the beginning of the voyage.

Exempt of Limited Liability
Art. 339. The rules specified in the preceding Art. on limiting the liability of the shipowner shall not apply:
1. to obligations to the members of the crew or other persons involved in the service on the ship;
2. to obligations arising of the personal fault of the shipowner;
3. (new – SG 113/02) to indemnity for damages caused to living sea resources in breach of the terms for granting authorization on performing farm fishery.

Boundaries of the Limited Liability
Art. 340. In cases of limited liability of the shipowner he shall be liable only within the amount of the sum, formed by the value of:
1. the ship;
2. (new – SG 113/02) the carriage price at the moment of occurrence of the claim grounds;
3. the indemnity instalments due to the ship in case of general average and rewards for damages caused to ship after the beginning of the voyage and still not reimbursed, except for insurance compensations.

Extent of the Liability
Art. 341. (1) The liability of the shipowner in the cases of Art. 338, Items 1, 2, 3 and 4 may not exceed the sum amounting to 3/10 of the value of the ship for compensation of the economical damages and another 4/10 of the same value for compensation of the personal injuries.
(2) If the sum determined for compensation of the personal injuries occurs to be insufficient, the unpaid part shall be subject to proportional payment from the sum intended for compensation of the economical damages.
(3) In respect of foreign creditors, whose states have established lower liability compared to the liability under this Code, the shipowner shall be liable within the specified lower extent.
(4) If the statutes of another state contain liability rules applicable to ships operated by Bulgarian shipowners which are heavier than those contained in this Chapter, applicable to ships registered in that State shall be the rules of the heavier liability of the foreign statutes.

Determining the Value of the Ship
Art. 342. The value of the ship shall be determined as follows:
1. for claims related to collision, average and other accidents arisen before the arrival of the ship at the closest port the assessment shall be made according to the condition of the ship at the moment of her arrival at the port in question. If before that moment some other accident, unrelated to the first one, has reduced the value of the ship, the reduction of the values caused in that way shall no be taken into consideration. If the accident has happened during the stay of the ship at the port, the assessment shall be made according to the condition of the ship at the port after the accident;
2. for claims arising of a carriage contract, as well as in respect of any claims related to the cargo, although not arising of the carriage contract, except in the cases provided for in Item 1 of the current Art., the assessment shall be made according to the condition of the ship at the port of destination of the cargo or at the place, where the voyage is terminated. If the cargo is destined to several ports and if the caused damage has occurred as a result of whatever general reason, the assessment shall be made according to the condition of the ship at the first of these ports;
3. in all other cases, specified in Art. 338, the ship shall be assessed according her condition at the moment of arrival at the last port of destination.

Abandonment of a Ship
Art. 343. The shipowner may be relieved of the liability in his obligations in the cases of Art. 338, Items 4, 5 and 7 if he abandons the ship (abandonment), the freight and the rest of the sums referred to in Art. 340 of this Code.

Effect of the Abandonment
Art. 344. (1) The abandonment may be carried out in favour of all of the creditors or only some of them.
(2) The application for abandonment shall be entered into the register where the ship is registered, and the entry shall be announced to the creditors in favour of whom the abandonment is made. The application shall indicate the reasons of abandonment, the amount of the freight, as well as the names, the places of residence and the claims of the creditors known at the time of the application.
(3) The district court in the region of which the ship is registered shall be the competent court for settling disputes on liquidation of the abandoned property.

Effect of the Warranties
Art. 345. The warranties and the securities, provided by the shipowner amounting to his limited liability shall be designated to all persons in respect of which the shipowner is liable.

Other Persons Equal to the Liability of the Shipowner
Art. 346. The provisions on the limited liability of the shipowner shall apply respectively to the other persons operating the ship on their own behalf and at their expense, although not owners, including the lessees of a ship, for their obligations under Art. 338 of this Code.

Chapter fifteen.
"A" LIABILITY OF THE SHIPOWNER OF AN OIL TANKER FOR DAMAGES OF OIL AND OIL PRODUCTS POLLUTION (NEW – SG 55/04)
Liability of the Shipowner of an Oil Tanker
Art. 346a. (new – SG 55/04) (1) The shipowner of an oil tanker shall be liable for the damages caused by oil or oil products pollution in case of incident with the tanker.
(2) The shipowner shall not be liable for the damages resulting of:
1. force majeure;
2. intentional actions or omissions of third parties;
3. faulty behaviour of the authorities responsible for the maintenance of the navigational aids on the coast.
(3) If the damages have resulted from a faulty behaviour of the person who suffered the damage, the shipowner may be exonerated from his liability or his indemnity may be reduced.
(4) When an incident involving two or more ships has occurred, resulting in damages from pollution with oil and oil products, the shipowners of the tankers concerned, unless exonerated under Para 2, shall be jointly and severally liable.

Scope of the Liability
Art. 346b. (new – SG 55/04) The indemnity shall include the incurred losses within the amount of the expenses required for restoration of the environment, as well as the expenses for the preventive measures undertaken with the purpose to restrict the damages and the losses resulting therefrom.

Limited Liability of the Shipowner
Art. 346c. (new – SG 55/04) (1) The owner of a ship shall be entitled to limit his liability in respect of any one incident:
1. up to the BGN equivalent of 3 million special drawing rights of the International Monetary Fund – for tankers of 5000 gross tons at most;
2. up to the BGN equivalent of sum of the amount under Item 1 and 420 special drawing rights for each gross ton exceeding 5000 gross tons, but no more than 59,7 million special drawing rights – for tankers exceeding 5000 gross tons.
(2) The shipowner shall be entitled to limit his liability within the amount referred to in Para 1, if he provides a security before the court by the order of Art. 180 and 181 of the Law on the Obligations and Contracts representing the limit of his liability under Para 1, found by the court to be sufficient.
(3) The shipowner shall not be entitled to limit his liability if the damages result from his faulty behaviour.

Financial Security and Granting a Certificate
Art. 346d. (new – SG 55/04) (1) The owner of a tanker carrying more than 2,000 tons of oil in bulk shall be required to maintain insurance, bank guarantee or other financial security to cover the respective value referred to in Art. 346c, Para 1.
(2) Each ship flying the Bulgarian flag and carrying more than 2,000 tons of oil in bulk as cargo shall have a certificate on board attesting the circumstances under Para 1 issued by the Executive Agency "Maritime Administration" by conditions and order determined in the ordinance referred to in Art. 86.
(3) The Executive Agency "Maritime Administration" may issue a certificate attesting the circumstances under Para 1 to a tanker flying the flag of a State not party to the International Convention on Civil Liability for Oil Pollution Damage – 1992, under conditions and order determined in the ordinance referred to in Art. 86.
(4) Any tanker flying the flag of a State – party to the International Convention on Civil Liability for Oil Pollution Damage – 1992, and carrying more than 2,000 tons of oil in bulk as cargo shall have a certificate on board attesting the maintenance of insurance, bank guarantee or other financial security covering the liability for damages of oil and oil products pollution, or a certificate, where it is declared that the ship is owned by the State in question and the liability for damages of oil and oil products pollution is covered up to the amount under Art. 346c, Para 1, issued by the competent authorities of the State under the flag of which the ship is sailing.
(5) The Executive Agency "Maritime Administration" shall keep a register of the issued certificates.

Chapter sixteen.
SEA PROTESTS, RECLAMATIONS, LIMITATION
Section I.
Sea Protests
Statement
Art. 347. (1) Where at the time of sailing or stay a ship sustains an incident which may serve grounds for laying claims against the shipowner, the master shall, according to the established order, make a statement for drawing up a sea protest.
(2) The statement for drawing up a sea protest shall contain a description of the fact of the incident and the measures taken by the master for securing the property entrusted to him.

Authorities, before Whom the Statement is Made
Art. 348. (amend. - SG 41/01) The sea protest statement is made:
at the Bulgarian ports – before the notary;
at the foreign ports – before the consular officer of the Republic of Bulgaria or the competent official of the foreign State determined by the legislation of this State.

Term of the Statement
Art. 349. (1) The sea protest statement shall be made in the first port visited within twenty-four hours after the arrival of the ship.
(2) If the incident requiring a sea protest to be drawn up happens in a port, the sea protest statement shall be made within twenty-four hours after the incident.

Delay of the Statement
Art. 350. (1) Where requesting a sea protest to be drawn up happens to be impossible within the specified term, the reasons thereof shall be noted in the statement.
(2) Where there are reasonable grounds to assume that the incident has caused damages to the cargo on the ship, the statement of the sea protest shall be made before opening of the hatches. The discharge of the ship may be started before statement of the sea protest only in case of imminent danger.

Proving the Facts
Art. 351. (1) For proving the facts stated in the sea protest statement, the master of the ship shall, at the time of making it or within a term not exceeding 7 days from his arrival at the port, or from the moment of the incident, if it has happened in the port, produce before the notary or the official for examination the ship’s log or certified abstracts thereof signed by the master of the ship and affixed with the seal of the ship.
(2) Where the ship's log is lost, all the circumstances of the incident and the circumstances and the reasons for the loss of the ship's log shall be stated in the sea protest statement in details.

Drawing up a Sea Protest Act
Art. 352. The notary or the respective official shall draw up a sea protest act and endorse it on the basis of the statement of the master, the information from the ship's log and the examination of the master and, if possible, of at least two witnesses from the command body.

Drawing up an Act by Foreign Authorities
Art. 353. (amend. - SG 41/01) Receipt of sea protest statements from the masters of foreign ships and drawing up sea protest acts may be carried out also by the respective consular representatives of the foreign States in the Republic of Bulgaria by reciprocity.

Section II.
Reclamations and Claims
Laying Reclamations (title corr. - SG 58/70)
Art. 354. (1) (corr. - SG 58/70;amend. - SG 113/02) Arbitration and judicial claims, arising of the contract for carriage of cargoes, passengers and baggage, may be raised by Bulgarian natural and legal persons only after raising a reclamation before the carrier.
(2) The application shall indicate the subject-matter of the reclamation, the amount of the sum claimed with each of the filed documents, a list of the documents attached to the application and the address of the person entitled to receive the sum.
(3) (revoked – SG 113/02)

Documents Necessary for the Reclamation
Art. 355. The documents on which the claim is grounded shall be enclosed to the application for raising reclamation for loss or damages to cargoes or baggage:
1. bills of lading and waybills;
2. acts and records establishing the losses or the damages of cargoes and baggage;
3. other necessary documents establishing the grounds and the amount of the claim.

Examination Terms
Art. 356. The carrier shall be obliged to examine the reclamation laid before him and to give an opinion within the following terms:
1. on reclamations for returning of sums, received from sale of unclaimed cargoes, for compensation for delay of delivery and for payment of retained cash on delivery – not later than 30 days from the day of raising the reclamation;
2. on any other reclamations – not later than 45 days from the day of raising the reclamation.

Section III.
Limitation
Types of Limitation
Art. 357. (amend. - SG 113/02) The actions shall be time-barred:
1. by two-year limitation period for:
a) claims arising of insurance contracts, commencing on the day of arising of the right to claim;
b) claims arising of collisions of ships, except the claims referred to in Art. 314, Para 2, commencing on the day the damage is caused;
c) claims arising of rendering assistance, commencing on the day of completion of the activities on rendering assistance;
d) claims arising of general average, commencing on the day of arising of the right to claim;
e) claims arising of agency contracts and contracts of brokerage in shipping;
f) claims arising of contracts of carriage of passengers, commencing on the day of arrival of the ship or from the day she should have arrived;
2. by one-year limitation period for:
a) claims arising of contracts of carriage of cargoes and baggage, commencing on the day of delivery of the cargo or the baggage to the consignee, and if the cargo or the baggage was not delivered – from the day it should have been delivered;
b) claims arising of contracts of rental of a ship for a certain time or in terms of a bareboat charter, commencing on the day of expiration of the term of the contract;
c) claims arising of towage contracts, commencing on the day of arising of the right to claim;
d) claims arising of contracts of pilot leading;
e) claims arising of dealings, concluded by the master of the ship by virtue of his legal capacities, commencing on the day of arising of the right to claim;
f) claims of the shipowner who has paid sums exceeding those due to him according to the apportionment of a reward for salvage of persons;
3. by six-month limitation period for claims, arising of contracts for carriage of passengers and personal baggage under cabotage, commencing on the day of arrival at the destination, or if the voyage is not completed – on the day the passenger should have arrived.

Suspension of the Limitation
Art. 358. (1) The provisions of the civil law statutes on interruption, suspension and resumption of the limitation shall apply to the limitation periods referred to in Art. 357 of this Chapter.
(2) Regardless of the provisions of the preceding Paragraph the limitation period shall be suspended, if the calculation of the amount of the claim depends on the calculation of the general average for the period from the day, in which the average adjuster declares the initiation of drawing up the average statement, to the day of announcement that the average statement is drawn up.
(3) The limitation period shall be suspended also for the time from submission of the reclamation to its partial or full rejection, but without exceeding the periods referred to in Art. 356 of this Code.

Consequences of the Suspension
Art. 359. In the cases, where after suspension of the limitation remains a period of less than three months for laying a claim, it shall be extended to three months, and in respect of claims arising of general average – to six months.

Chapter seventeen.
MARITIME ADMINISTRATION
Status of the Executive Agency "Maritime Administration" (title amend. - SG 41/01)
Art. 360. (amend. - SG 41/01) (1) (amend. - SG 87/05; amend. - SG 85/10) The Executive Agency "Maritime Administration" formed at the Minister of Transport, Information Technologies and Communications is a legal person supported by the budget and by its own revenue, a secondary administrator of budget credits, with a seat in Sofia and territorial units in Bourgas, Varna, Rousse and Lom.
(2) (amend. - SG 113/02) The activities, structure, organization and composition of the Executive Agency "Maritime Administration" shall be determined in structural regulations, adopted by the Council of Ministers.
(3) (amend. - SG 87/05; amend. - SG 71/08) Executive Agency "Maritime Administration" shall administer revenue from:
1. the fees under Art. 103a, Para 6 of the Law on the Sea Waters, the Internal Waterways and the Ports of the Republic of Bulgaria;
2. activities of offering roadstead boats for use;
3. rewards for salvage of property in the sea or river;
4. towing or pushing of ships and other sailing objects;
5. provision of information from the public registers kept by the Agency;
6. rent of property;
7. other activities and services carried out by the Agency.
(4) The employees of the Executive Agency "Maritime Administration" shall be obliged to keep secret the information available to them through the performance of their employment obligations.
(5) (new – SG 113/02) The control and safety provision of sailing shall be performed by the Executive Agency "Maritime Administration".
(6) (new – SG 98/08; amend. - SG 85/10) For specific conditions and requirements to the labour, related with execution of the regulatory and controlling function sin the field of the ports and for provision of the safety and security in shipping, the servants of the Executive Agency "Maritime Administration" shall receive additional remuneration to the basic month salary under conditions and procedure, determined by the Minister of Transport, Information Technologies and Communications. 25 % of the funds for the annual amount of the funds for salary in the Executive Agency "Maritime Administration" shall be provided from the budget of the Ministry of Transport, Information Technologies and Communications for the respective year.

Cooperation with Other Administrations
Art. 360a. (new – SG 113/02; amend. - SG 87/05; amend. - SG 85/10) For performance of its obligations under this Code and other statutes the Executive Agency "Maritime Administration" may conclude cooperation contracts with other administrative authorities. Contracts for cooperation and mutual recognition of administrations shall be concluded with foreign administrations after a permission of the Minister of Transport, Information Technologies and Communications.

Territorial Competence (title amend. - SG 113/02)
Art. 361. The territorial competence of the Executive Agency "Maritime Administration" shall comprise:
1. (amend. - SG 113/02) the internal sea waters;
2. (amend. - SG 113/02) the territorial sea;
3. (new - SG 113/02) the Bulgarian section of the Danube river;
4. (prev. text of item 03 – SG 113/02) 100 meters of width of the terrestrial shoreline, measured from the line of the lowest tide. Where there are settlements or elevations staying closer than 100 meters from the line of the lowest tide, the boundaries of the shoreline shall coincide with the bounds of the settlement on the side of the sea or with the top of the elevation;
5. (new - SG 113/02) the terrestrial shoreline on 100 meters of distance, measured from the line, where the water surface of the Danube river crosses the Bulgarian section at the lowest level of position levels;
6. (new - SG 71/08) the area of the ports, including the zones under Art. 103, Para 6 of the Law on the Sea Waters, the Internal Waterways and the Ports of the Republic of Bulgaria, except for the military ports.

Legal Capacity Requirements
Art. 361a. (new - SG 113/02) (1) In order to perform their capacities under this Code the Executive Director of the Executive Agency "Maritime Administration" and the directors of the Regional Directorates – masters of ports, shall be seafarers with "Master Foreign-Going" legal capacity.
(2) Seafarers of a certain legal capacity shall be also the chiefs of units controlling the navigation and the safety of shipping.

Orders of the Executive Director of the Executive Agency "Maritime Administration"
Art. 362. (amend. - SG 41/01; amend. - SG 113/02) (1) The Executive Director of the Executive Agency "Maritime Administration" or officials authorized by him, within the limits of their competence, may issue orders being compulsory for:
1. all ships flying the Bulgarian flag, regardless of their ownership and purpose;
2. all ships flying foreign flags, when they are located in the territorial sea, the internal sea waters and the Bulgarian section of the Danube river, unless otherwise provided by the statutes or the international treaties, to which the Republic of Bulgaria is contracting party;
3. all shipowners, members of the ship's crew, employees in the ports and ships, state and municipal administrations, when their activity is related to the merchant shipping, as well as for any person, located in the marine spaces of the Republic of Bulgaria, the internal waterways of the Republic of Bulgaria and the other water areas with no contact with the sea, regardless of their official status and nationality;
4. (new - SG 71/08) all owners of ports, port operators, persons carrying out related activities, as well as persons providing technical sea services under the Law on the Sea Waters, the Internal Waterways and the Ports of the Republic of Bulgaria.
(2) Appeal of the acts referred to in Para 1 shall not suspend their performance.

Safety of Shipping Control. Regulatory and control functions of the state in the field of ports. (title suppl. SG 71/08)
Art. 362a. (1) (new – SG 113/02; prev. text of art. 362a – SG 55/04) The Executive Agency "Maritime Administration" shall exercise:
1. state control of the ships flying the Bulgarian flag regarding the compliance with the administrative, technical and social requirements established in a normative way;
2. state control in the ports of the foreign ships from the moment of their entry to their departure from the ports of the Republic of Bulgaria for compliance with the international safety standards, pollution prevention and the life and working conditions on board of the ships, visiting the Bulgarian ports; within one calendar year the Executive Agency "Maritime Administration" shall make surveys corresponding to at least 25 percent of the ships visiting the Bulgarian ports;
3. state control of the safe shipping in the marine spaces and the Bulgarian section of the Danube river.
(2) (new – SG 55/04; amend. - SG 87/05; amend. - SG 85/10) The conditions and order of exercising the control under Para 1, Item 2 shall be determined in an ordinance of the Minister of Transport, Information Technologies and Communications.
(3) (new - SG 71/08) The Executive Agency "Maritime Administration" shall carry out the regulatory and control functions of the state in the field of ports under the Law on the Sea Waters, the Internal Waterways and the Ports of the Republic of Bulgaria by:
1. observing the performance of the provisions of securing the port safety;
2. keeping the registers of the ports and of the port operators in the Republic of Bulgaria;
3. (amend. - SG 85/10) collect and provide to the Minister of Transport, Information Technologies and Communications information on the implementation of the requirements of the operational fitness of the ports;
4. (amend. - SG 85/10) making proposals to the Minister of Transport, Information Technologies and Communications for suspension of the activity or temporary or permanent restriction of the activity of the ports, which do not meet the requirements of the Law on the Sea Waters, the Internal Waterways and the Ports of the Republic of Bulgaria or perform port services in breach of Art. 116, Para 5 of the same Law;
5. controlling the compliance with the requirements for technical safety of the port facilities, for labour safety and for safe performance of loading and unloading operations;
6. determining the security levels of the ports;
7. controlling the observance of the requirements for free access to the public transport ports;
8. (amend. - SG 85/10) making proposals to the Minister of Transport, Information Technologies and Communications for amending the amounts of port fees;
9. (amend. - SG 85/10) assisting the Minister of Transport, Information Technologies and Communications in controlling the performance of the concession contracts, concluded under the Law on the Sea Waters, the Internal Waterways and the Ports of the Republic of Bulgaria;
10. controlling the performance of the contracts under Art. 117b, Para 1 of the Law on the Sea Waters, the Internal Waterways and the Ports of the Republic of Bulgaria;
11. carrying out other functions assigned in a law or an act of the Council of Ministers.

Prohibition on Visiting Bulgarian Ports
Art. 362b. (new – SG 87/05) The Executive Director of the Executive Agency "Maritime Administration", under conditions and order referred to in the ordinance under Art. 362a, Para 2 shall prohibit the visit of Bulgarian ports by ships flying foreign flags, when not complying with the requirements of safety of shipping and protection of the environment from pollution by ships.

Authorization and Prohibition of Departure
Art. 363. (amend. - SG 41/01; amend. - SG 113/02) (1) The departure of every ship shall be authorized by the captain of the port.
(2) (suppl. - SG 87/05) The captain of the port or an official authorized by him may prohibit the departure of any ship in the following cases:
1. in case of absence or invalidity of a document certifying the right of flying the flag of a certain state;
2. in case of absence or invalidity of the documents, required under the bilateral and multilateral international treaties to which the Republic of Bulgaria is a party;
3. water leaking in the hull of the ship;
4. failure of the steering and anchor equipment;
5. loading of the ship non-compliant with the rules or the good seamanship for carriage of cargoes, excess of the heel of the ship by more than 8 degrees and in case of presence of a cargo disturbing the visibility for commanding the ship;
6. receiving more than the admissible number of passengers, specified in the safety certificate of a passenger's ship;
7. loading the ship over the maximum draught specified in the ship's documents;
8. non-supply of the ship with qualified crew;
9. insufficient supply of the ship with salvage, fire-fighting, draining, signal and other means and devices, required for the safety of shipping;
10. absence or incompleteness of medicine and life-saving resources, as well as absence of a person with medical qualification on the ship, when required;
11. in case of infringement of the provision of Art. 175a, Para 2 on the conditions and order for carriage of dangerous cargoes;
12. in case of infringement of the provisions of a statute or international treaty, to which the Republic of Bulgaria is a party;
13. in case of infringement of the conditions of life and labour, the periods of work and rest and supply with provisions of the crew of the ship.
(3) (new – SG 55/04) The captain of the port shall prohibit the departure or entry in the port of a tanker carrying more than 2000 tons of oil in bulk as cargo, if there is no a certificate under Art. 346d available on board.
(4) (prev. text of para 03 – SG 55/04) The prohibition of departure shall remain in force until elimination of its reasons.

Compulsory Rules
Art. 363a. (new – SG 113/02) The Executive Director of the Executive Agency "Maritime Administration" shall issue compulsory rules on:
1. ensuring free practice;
2. observance of the rules for radio exchange;
3. use of pilot services and compliance with the instructions of the traffic-control on the traffic within the areas of the ports;
4. rules on using towboats in the regions of ports;
5. rules on use of anchorages;
6. rules on loading, discharging, declaring and marking of dangerous and special cargoes;
7. rules on ensuring the protection of the sea of pollution by ships;
8. rules of fire safety.

Grounds for Arrest of Ships
Art. 364. (amend. - SG 41/01; amend. - SG 113/02) (1) (suppl. - SG 104/05, in force from 27.12.2005) The Executive Director of the Executive Agency "Maritime Administration" or the captain of a port may detain Bulgarian or foreign ships and cargoes for unpaid sums of customs, port and other fees, taxes and fines, for which a claim was laid on behalf of bodies of the administrative and judicial authorities or by the State Enterprise "Port Infrastructure".
(2) The arrest shall continue until elimination of the grounds of it.
(3) Arrest under the order of Para 1 and 2 may be requested also upon application of a foreign maritime administration.

Arrest upon Request of Interested Persons
Art. 365. (amend. - SG 41/01; amend. - SG 113/02) (1) The Executive Agency "Maritime Administration" may detain ships flying the Bulgarian or a foreign flag, or cargoes upon request of natural and legal persons for claims arising of averages, collisions, rendered assistance, other services or of performance of carriage contracts, until the necessary guarantees are provided by the shipowner or the consignee.
(2) The arrest of the ship (the cargo) shall be terminated after 72 hours, if within this period the district court at the location of the ship or the cargo does not rule accordingly.
(3) The captain of the port performing the detainment under Para 1 shall be obliged the observe the general requirements of the security proceedings under the Civil Procedure Code. Upon request of a guarantee by the party detaining the ship, it shall correspond to the actual losses of the ship and/or the cargo.
(4) In case of groundless arrest the liability shall be born by the person to the request of whom the arrest is imposed.
(5) Arrest of a ship and/or cargo may be requested by the persons referred to in Para 1 or by the court according to the order for the security proceedings under the Civil Procedure Code.
(6) The Executive Agency "Maritime Administration" shall collect a fee in the cases of arrest of a ship or cargo under Para 1 except in the cases, where the arrest is requested in respect of obligations related to loss of life or personal injury. For the arrest approval by the court as referred to in Para 2 second fee shall not be collected.

Shifting an Unseaworthy Ship
Art. 366. (amend. - SG 41/01) (1) (amend. - SG 113/02) The Executive Agency "Maritime Administration" may order natural or legal persons the shifting of an unseaworthy ship to a suitable place, where he may stay in floating or non-floating state, in order to prevent obstruction of shipping.
(2) The Agency shall not be liable for the consequences resulting from the shifting of the ship.

Order for Participation in Salvage
Art. 367. (amend. - SG 41/01) The Executive Agency "Maritime Administration" may oblige the ships and persons located in the port to provide their vessels or other technical means for salvage of ships and persons in distress.

Infringement Sanctions
Art. 368. (amend. - SG 41/01; revoked – SG 113/02)

Regulations on the Executive Agency "Maritime Administration" (title amend. - SG 41/01)
Art. 369. (amend. - SG 41/01; revoked – SG 113/02)

Inspectorate
Art. 370. (new – SG 113/02) (1) The Inspectorate of the Executive Agency "Maritime Administration" shall exercise the control referred to in Art. 362a.
(2) The persons referred to in Art. 362, Para 1, Item 3 shall be obliged to execute the orders and to render full assistance to the inspectors of the Executive Agency "Maritime Administration" in performing of their official duties. The orders of the inspectors shall be compulsory also for the ships referred to in Art. 362, Para 1, Items 1 and 2.
(3) The inspectors shall be identified by an identification inspector's card, the sample of which shall meet the requirements applicable in the European Union and shall possess a personal seal.
(4) The identification inspector's card shall be issued by the Executive Director of the Executive Agency "Maritime Administration" and shall contain information in Bulgarian and English about:
1. the name of the administration, issuing the card;
2. the three names of the holder of the card;
3. a photo and signature of the holder;
4. the legal grounds on performing the inspection.
(5) (amend. - SG 87/05; revoked - SG 71/08)
(6) For performance of their capacities under this Code the inspectors of the Executive Agency "Maritime Administration", carrying out the control, shall be seafarers having the required legal capacity.

Conditions and Order for Waste Acceptance 
Art. 371. (new – SG 113/02; amend. - SG 87/05; amend. - SG 85/10) The conditions and order of delivery and acceptance of waste, resulting of the shipping activity and the ship's cargoes shall be regulated in an ordinance of the Minister of Transport, Information Technologies and Communications.

Bulletin and Statistics
Art. 372. (new – SG 113/02) (1) The Executive Agency "Maritime Administration" shall issue a bulletin, in which the compulsory orders, circulars, national and international acts in the field of shipping shall be published.
(2) The Executive Agency "Maritime Administration" shall compile the information of its activities, as well as the information contained in the registers kept by the administration, in a single database, which may be used in accordance with the obligations arising of international treaties, to which the Republic of Bulgaria is a party.

Chapter eighteen.
ADMINISTRATIVE PENAL PROVISIONS (NEW – SG 113/02)
Art. 373. (new – SG 113/02) Any person breaching the provisions of Art. 39 or not requesting registration of changes in the circumstances under Art. 38, Para 1 in the specified terms shall be fined or imposed a proprietary sanction from BGN 50 to 500.

Art. 347. (new – SG 113/02) Any ship-owner allowing his ship to sail in breach of the requirements of safety and protection of the environment from pollution shall be fined or imposed a proprietary sanction from BGN 2000 to 50 000.

Art. 375. (new – SG 113/02) (1) Any member of a crew of a ship performing his employment duties after consumption of alcohol or other narcotic substances, established in the appropriate manner, shall be temporarily deprived of the right to exercise the activity related to the committed infringement for a period from six months to one year.
(2) The penalty referred to in Para 1 shall be imposed also to any pilot performing pilotage of a ship under the influence of alcohol or other narcotic substances. established in the appropriate manner.
(3) In case of repeated infringement under Para 1 and 2 the penalty shall be temporary deprivation of the right to exercise the activity related to the committed infringement for a period from one to two years.
(4) (amend. - SG 87/05; amend. - SG 85/10) Establishment of the alcohol consumption shall be performed under conditions and order determined in an ordinance of the Minister of Transport, Information Technologies and Communications.

Art. 376. (new – SG 113/02) Any master of a ship, pilot or member of the crew who during performance of their employment duties causes a wreck or average of the ship through his fault, unless the act constitutes a crime, shall be punished by temporary deprivation of the right to exercise the activity in relation to which the infringement is committed for a period from six months to two years and a fine from BGN 200 to 1000.

Art. 377. (1) (new – SG 113/02; prev. text of Art. 377 - SG 85/10) Any master of a ship who does not declare the carriage or does not meet the rules on carriage of dangerous cargoes or other cargoes, the declaration of which is not compulsory, shall be fined from BGN 1000 to 5000, unless subject to a more severe penalty.
(2) (new - SG 85/10) Any master of a ship who fails to send a notification that the ship is subject to mandatory extended check shall be fined between BGN 2500 and 5000.
(3) (new - SG 85/10) Any master of a ship who fails to send information of the type and volume of wastes resulting from shipping activities present onboard of the ship shall be fined between BGN 1000 and 2000.

Art. 378. (new – SG 113/02) (1) Any master or crew member breaching the compulsory orders of the captain of the port regarding the ships shall be fined from BGN 50 to 1000, and for repeated breach – from BGN 200 to 5000.
(2) (amend. - SG 71/08) Any master or crew member who through his fault, by action or omission, has allowed that the ship sails in breach of the requirements for safety and environment protection of pollution or that the ship is arrested under the ship control rules in the ports shall be fined from BGN 500 to 5000 and shall be deprived of the right to occupy the position in relation to which the breach is committed for a period from 6 months to one year.
(3) (amend. - SG 71/08) For repeated infringement under Para 2 the penalty shall be a fine from BGN 5000 to 10 000 and deprivation of the right to occupy the position in relation to which the infringement is performed for a period of one year to two years.
(4) (suppl. - SG 71/08) When the infringement under Para 2 is committed by an employee of the shipowner, an official of the Executive Agency "Maritime Administration" or an organization for performing surveys recognized under this Code, the penalty shall be a fine from BGN 500 to 5000, and for repeated infringement – from BGN 5000 to 10 000.

Art. 379. (new – SG 113/02) Any master of a ship who does not observe the areas for compulsory and non-compulsory pilotage in the cases where the ships are exempt of compulsory pilotage, the grounds on issuing an order for prohibiting visits on ships, determination of the places for mooring and for performing loading and discharging operations by infringing the safety requirements or in places not meeting these requirements shall be fined from BGN 2000 to 10 000.

Art. 380. (new – SG 113/02) (1) Any shipowner hiring a person to work on a ship not having the required legal capacity for the specified occupation, as well as any person commanding a ship or performing other activity on a ship without having the legal capacity required thereof shall be fined or imposed a proprietary sanction from BGN 500 to 5000.
(2) Any person compiling or using non-authentic official document or changing the contents of an official document related to acquiring legal capacity under this Code, unless the act constitutes a crime shall be fined from BGN 2000 to 10 000 and deprived of the right to occupy a position on a ship for a period of five years.
(3) Any master of a ship breaching the rules on collision prevention, the rules on coastwise sailing, the rules on sailing the Danube river and for sailing in the aquatory of the ports shall be fined from BGN 50 to 250.

Art. 381. (new – SG 113/02) (1) Any person breaching other provisions of this Code shall be fined or imposed a proprietary sanction from BGN 20 to 250.
(2) Any person breaching or failing to perform the legal orders of the Executive Agency "Maritime Administration" shall be fined or imposed a proprietary sanction from BGN 10 to 250.
(3) (new – SG 87/05) Any person breaching subordinate normative acts on the implementation of this Code shall be fined or imposed a proprietary sanction from BGN 400 to 2000.

Art. 382. (new – SG 113/02) (1) Any person failing to perform or breaching the requirements of Art. 363a, Items 1, 3, 4 and 5 shall be fined from BGN 1000 to 2500.
(2) Any person failing to perform or breaching the requirements of Art. 363a, Items 2 and 8 shall be fined from BGN 500 to 5000.
(3) Any person failing to perform or breaching the requirements of Art. 363a, Items 6 and 7 shall be fined from BGN 10 000 to 50 000.

Art. 382a. (new – SG 55/04) Any person breaching the requirement of Art. 27, Para 1 shall be fined or imposed a proprietary sanction from BGN 50 000 to 250 000.

Art. 383. (new - SG 113/02) (1) (amend. – SG 12/09, in force from 01.05.2009) In case of insignificant cases of breaches of the provisions of this Code a fine from BGN 10 to 50 may be imposed by a slip. The slip issued for the imposed fine shall contain information of the identity of the official imposing the fine, of the identity of the infringer, the location and time of infringement, the provisions infringed and the amount of the fine. The slip shall be signed by the official imposing the fine, by the infringer, that he agrees to pay the fine, and shall be sent to the National Revenue Agency under the order of the Tax-Insurance Procedure. The infringer shall be supplied with a copy of the slip in order to be able to pay the fine voluntarily in the municipality of his residence.
(2) A statement shall be drawn up against any person contesting the performance of the infringement, the amount of the fine imposed or refusing to sign the slip.
(3) (new - SG 85/10) The executive director of Executive Agency "Maritime Administration" shall authorise the officials competent to impose a fine by a slip.

Art. 384. (new – SG 113/02) (1) The infringements shall be established and the penalties under this Code shall be imposed by the order of the Law for the Administrative Offences and Sanctions.
(2) The infringements of this Code shall be established by statements drawn up by the inspectors of the Executive Agency "Maritime Administration". Act shall be drawn up in each case of written notification of the Executive Agency "Maritime Administration" by masters of ships of infringements committed by crew members during sailing.
(3) The punitive decrees shall be issued by the Executive Director of the Executive Agency "Maritime Administration" or any official authorized by him.
(4) (new – SG 55/04) A pecuniary compensation may be determined in a punitive decree up to the total amount of the incurred damages.
(5) (new – SG 55/04) The punitive decree may be appealed also by the shipowner in the part determining the compensation for incurred damages. In respect of the shipowner the punitive decree shall be deemed handed over by handing it over to the master of the ship.
(6) (prev. text of para 04 – SG 55/04) The term under Art. 34, Para 1 of the Law for the Administrative Offences and Sanctions shall commence from returning of the infringer in the Republic of Bulgaria.

Additional provisions

(Chapter XVIII revoked – SG 85/98)
§ 1. (new – SG 85/98; suppl. - SG 12/00;amend. - SG 41/01; amend. - SG 113/02; revoked – SG 108/06, in force from 01.01.2007)

§ 1a. (new – SG 113/02) In the sense of this Code:
1. "Fishing ship" means a vessel equipped and used for commercial purposes of catch and processing of fish or other fish resources;
2. "Passenger's ship" means any ship, including high-speed vessels, in the sense of the International Convention for the Safety of Life At Sea (SOLAS), transporting more than 12 passengers.
3. "Deprivation of the right to exercise his activity in compliance with the position occupied by him" of a seafarer shall mean a restriction of the rights in the sense of Art. 16 of the Law for the Administrative Offences and Sanctions.
4. "Repeated" shall be the infringement committed within one year from entry into force of the penal decree by which the infringer is imposed a fine for the same kind of infringement, and in the cases where the infringer is imposed a penalty of temporary deprivation of the right to exercise a certain profession – within one year from the date of serving the penalty.
5. "One sea mile" shall be 1852 m.
6. (amend. - SG 113/02) "Coastwise sailing" means sailing in the territorial sea of the Republic of Bulgaria.
7. "Equipment" means supplying the ship with the required technical means, fuels and materials, as well as her appropriate supply with a crew in order to ensure safety of shipping, protection of the human life at sea and the appropriate carriage of cargoes and passengers.
8. "Demurrage" means pecuniary compensation for the stay of the ship during loading and discharging operations in excess of the time specified in the contract on carriage by sea.
9. (amend. - SG 55/04) "Seafarer" means a natural person occupying a certain position on a ship or on the coast, holding a legal capacity certificate or a certificate for additional and/or special training, acquired by the order of the ordinance referred to in Art. 87, Para 1.
10. "Draught" means the distance from the water surface to the lowest spot of the ship.
11. "Surveyor" means a qualified person, authorized to perform surveys and examination of a ship or cargo.
12. "War carriage" means carriage with non-commercial purpose of war cargoes, machinery or army for the needs of the defence.
13. "Good reputation" means the merchant reputation of proved by recommendations of regular partners or branch organizations, of which the carrier is a member, and the chiefs of the carriage activities shall not be convicted for intentional crime of general character, or shall not be deprived of the right to exercise the activity in question by a conviction in force.
14. "Financial stability" means that the carrier has sufficient resources to guarantee the normal commencement and functioning of the carriage adventure.
15. "Professional competence of the carrier" means that the persons constantly managing the carriage activity of the carrier have the necessary knowledge and qualifications required through the national legislation and the international treaties, to which the Republic of Bulgaria is a party.
16. "Seaworthiness" means a complex quality of the ship in terms of hull, equipment and crew, which allows her to sail in regions and under meteorological conditions corresponding to her class, where available, as well as to perform the activity she is intended for, without exposing to danger the transported cargo or the life of the crew and the passengers.
17. "Bareboat charter" shall be a contract for rental of a ship for a certain period of time, by virtue of which the lessee shall obtain full rights of possession and control of the ship, including the right to appoint a master and crew of the ship for the entire rental period.
18. "Accidents" means cases of average or other events related to a ship, crew member or her passengers, resulting in a wreck, human victims, heavy or medium personal injuries, collision, fire, explosion, stranding, touching the bottom, damages to the hull, superstructures and mechanisms, environment pollution, etc.
19. "Residing in Bulgaria" shall be:
a) (amend. - SG 55/04) natural persons nationals of a Member State of the European Union, which are allowed permanent residence in the Republic of Bulgaria;
b) (amend. - SG 55/04) from the day of accession of the Republic of Bulgaria to the European Union – the natural persons nationals of a Member State of the European Union staying for a short term or permanently on the territory of the Republic of Bulgaria, having permission to exercise activity in employment relationship, granted by the Minister of Labour and Social Policy;
c) a legal person registered under the Commercial Law.
20. "Public service contract" means a contract concluded between the competent authorities and a carrier for provision of carriage services according to the market needs.
21. "Serious market disturbances" shall be deemed the threat arising for the financial status of a considerable number of carriers, performing river or marine carriage, related to permanent excess of offering of carriage services in comparison to the demand of the clients, where the forecasts does not indicate significant and permanent improvements.
22. "Cabotage carriage" means internal carriage of passengers and cargoes between ports located on the territory of the Republic of Bulgaria by a registered carrier.
23. "Obligation on public service performance" shall be the obligation of a carrier to offer prices and conditions which are against his commercial interest but are determined by competent authorities under the appropriate order according to the legislation in force.
24. "Shipowner" shall be an owner of a vessel, entered as such in the register of the ships.
25. "Bareboat charterer" shall be any person who has rented a ship for a certain period of time in a bareboat charter contract.
26. "Guide" means a seafarer with knowledge of the shipping conditions on the Danube river and having the required capacity to guide the ship through certain sections of the river.
27. "Serious danger" shall be any threat for the health and life of the people located on board of a ship rendering assistance, and also for the integrity of the ship which could lead to mass, permanent and irreparable damages.
28. "Position level" means the level of the water surface of a river, lake or sea measured in certain moments of the day by the height of the water column in a watermeasuring point, in relation to the zero of the water account (the watermeasuring point).
29. "Common maritime adventure" means when one or several vessels tow or push another vessel, provided that they perform a commercial, but not salvage operation.
30. "Property involved the common maritime adventure" shall be the ship, the goods and the freight.
31. "Special ship" means any ship used for scientific, training, cultural, sport, fire-frighting, communication, customs and sanitary purposes, for pilotage, for performing supervision, for breaking ice, for seeking and salvage, for liquidation of consequences and damages of lost property.
32. "Sunken property" means fully or partially sunken or stranded property (ship, part of a ship, object of ship equipment), cargoes and/or other property permanently located on the bottom of the sea or the river or cast ashore.
33. "Laterally connected group" means ships connected board to board, where none of them is located before or after the ship providing the movement of the group.
34. (new – SG 55/04) "Preventive measures" means all actions undertaken after the occurrence of an incident in order to prevent or restrict the damages of oil or oil products pollution.
35. (new - SG 85/10) "Insignificant case" shall be present in respect of ships not sailing internationally, where:
a) the ship papers issued by the Executive Agency "Maritime Administration" are not present on board the ship;
b) during the sale a valid competence document of a crew member is missing on board the ship, if such is required;
c) no accident and rescue equipment is marked on the ship;
d) the markings and signs on the ship's hull are unreadable or missing;
e) a crew list is missing, if required;
f) the ship's logs are incomplete or incorrect.

Transitional and concluding provisions

§ 2. (new – SG 113/02) The Bulgarian ships sailing the internal waterways shall be supplied with an act of nationality until 31 December 2004.

§ 3. (new – SG 113/02; amend – SG 55/04) The provisions of Art. 6, Para 3 and 5, Art. 7a and Art. 88, Para 2 shall enter in force from 1 January 2007.

§ 4. (prev. text of art. 370 – SG 85/98; amend. - SG 41/01; prev. text of § 02 – SG 113/02) (1) This Code shall enter into force from 1 January 1971 and shall revoke:
1. The Commercial Shipping Decree of the People's Republic of Bulgaria from 1953 regarding the sea transport.
2. The Decree on the Administration of the Ports and Coasts from 1952.
(2) Any Bulgarian nationals who have acquired ships of up to 40 gross register tons before entry into force of this Code shall preserve their property.
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The implementation of the Act shall be assigned to the Minister of Transport
This Code is adopted by the V National Assembly on 24 June 1970, it is promulgated in the State Gazette and affixed with the State seal.

Transitional and concluding provisions
TO THE LAW ON AMENDMENT AND SUPPLEMENTATION OF THE MERCHANT SHIPPING CODE
(PROM. - SG 71/08)

§ 11. (1) Executive Agency "Maritime Administration" shall step into the assets and passives, the rights and obligations of Executive Agency "Port Administration".
(2) The employment relations with the employees of Executive Agency "Port Administration" shall be arranged under the conditions and order of Art. 123 of the Labour Code.
(3) The official relationships with the civil servants of Executive Agency "Port Administration" shall be arranged under the conditions and order of Art. 87a of the Law on the State Officials.

§ 12. (1) State Enterprise "Port Infrastructure" shall step into the assets and passives, the rights and obligations of Executive Agency "Maritime Administration" regarding the performance of the functions under Art. 115l, Items 12 and 13.
(2) The employment relations with the employees of Executive Agency "Maritime Administration" related to performance of the functions under Art. 115l, Items 12 and 13 shall be arranged under the conditions and order of Art. 123 of the Labour Code.
(3) The official relationships with the civil servants of Executive Agency "Maritime Administration" related to performance of the functions under Art. 115l, Items 12 and 13 shall be arranged under the conditions and order of Art. 87a of the Law on the State Officials.

Transitional and concluding provisions
TO THE LAW OF AMENDMENT AND SUPPLEMENTATION OF THE TAX-INSURANCE PROCEDURE CODE
(PROM. – SG 12/09, IN FORCE FROM 01.05.2009; SUPPL. - SG 32/09)

§ 68. (suppl. - SG 32/09) This Law shall enter into force from 1 May 2009 except § 65, 66 and 67 which shall enter into force from the date of promulgation of the Law in the State Gazette and § 2 - 10, § 12, items 1 and 2 - regarding para 3, § 13 - 22, § 24 - 35, § 36, paras 1 - 4, § 37 - 51, § 52, items 1 - 3, item 4, letter "a", item 7, letter "f" - regarding para. 10 and para 11, item 8, letter "a", items 9 and 12 and § 53 - 64, which shall enter into force from the 1st of January 2010.

Concluding provisions
TO THE LAW ON AMENDMENT AND SUPPLEMENTATION OF THE MERCHANT SHIPPING CODE
(PROM. - SG 85/10)

§ 32. Everywhere in this Code the words "Minister of Transport" and "the Minister of Transport" shall be replaced respectively by "Minister of Transport, Information Technologies and Communications" and "the Minister of Transport, Information Technologies and Communications", and the words "the Ministry of Transport" shall be replaced by " the Ministry of Transport, Information Technologies and Communications".