Maritime Code of Georgia

Law of Georgia

Maritime Code of Georgia

Article 1🔗

The Maritime Code of Georgia (hereinafter – the “Code”) regulates relations related to maritime navigation. “Maritime navigation” means the use of ships for the carriage of passengers, transportation of cargo, luggage, mail, fishing and other maritime harvesting, prospecting and extraction of minerals, conduct of towing and salvage operations, and for other economic, scientific and cultural purposes.

Article 2🔗

This Code applies to navigation by sea-going ships in seas, rivers, lakes, reservoirs and other navigable routes, unless there is an exception provided by this Code, another special law of Georgia or an international treaty of Georgia.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 3🔗

The rules of the Code shall not apply to ships flying the naval flag, except in exceptional cases, which must not provide for the possibility of seizure, arrest or confiscation of these ships and cargo. The rules of the Code in relation to naval transportation shall apply only to the extent not provided for by special legislation regulating such transportation.

Article 4🔗

In relation to carriage by direct mixed and direct waterborne traffic carried out with the participation of maritime transport, the rules of the Code shall apply directly in the cases specified therein, as well as to the extent not provided for by special legislation regulating such carriage.

Article 5🔗

Carriage and towing between ports of Georgia shall be carried out by a ship flying the state flag of Georgia. A foreign ship may perform work between ports of Georgia in accordance with an international treaty of Georgia.

Law of Georgia of 11 December 2015 No. 4622 - website, 23.12.2015.

Article 6🔗

Carriage and towing work between ports of Georgia and foreign ports shall be carried out by ships belonging to any country.

Article 7🔗

1. “Maritime navigation” provided for by Article 1 of the Code may be carried out, in accordance with the legislation of Georgia, by natural or legal persons who own or possess ships.

2. A shipping company is a legal entity registered in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 13 July 2000 No. 490-LHG I, No. 28, 24.07.2000, Art. 87

Article 8🔗

A Legal Entity of Public Law within the system of the Ministry of Economy and Sustainable Development of Georgia − the Maritime Transport Agency (hereinafter – the Agency) shall carry out technical regulation of the maritime sector in accordance with the legislation of Georgia.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011.

Article 9🔗

The Agency:

a) on behalf of Georgia, exercises flag State control, port State control and State control of a port facility, and also, within the scope of its competence, develops and issues legal acts;

b) creates a unified system of education and certification of seafarers;

c) manages the Maritime Rescue and Coordination Centre and exercises State supervision over the organisation of saving human life at sea and the elimination of marine pollution;

d) exercises/performs other rights/obligations provided for by this Code and other legislative and subordinate normative acts of Georgia.

Law of Georgia of 13 July 2000 No. 490-LHG I, No. 28, 24.07.2000, Art. 87

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 10🔗

Every ship entering a port of Georgia shall be under the technical supervision of a classification society recognised by the flag State or be fully certified by the flag State in compliance with the standards of the relevant international convention.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023

Article 11🔗

1. In the zone of deployment and operation of sea routes and navigational means, water space and a land plot shall be allocated, and construction shall also be carried out in accordance with the procedure established by the legislation of Georgia, in agreement with the Agency.

2. A natural or legal person who violates the rules provided for by this Article shall, at the request of the Agency, within the specified period, at own expense, remove, relocate or alter buildings and structures that impede navigation and/or the operation of navigational means.

3. In the territorial sea of Georgia, in a port unit and in the coastal strip, the placement of navigational devices and means shall be permissible only in agreement with the Agency.

4. The types of services rendered by the Agency and the amount of the fee shall be determined by the Ministry of Economy and Sustainable Development of Georgia.

5. In the internal sea waters of Georgia, the territorial sea (waters) of Georgia, the special economic zone of Georgia and the continental shelf of Georgia, as defined by the Law of Georgia "On the Maritime Space of Georgia", hydrographic support of navigation shall be carried out by the Agency in accordance with a normative act of the Government of Georgia.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 19 December 2008 No. 784-LHG I, No. 40, 29.12.2008, Art. 252

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 2 May 2014 No. 2397 – website, 16.05.2014

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Law of Georgia of 20 September 2022 No. 1816 – website, 30.09.2022

Law of Georgia of 12 June 2025 No. 683 – website, 16.06.2025

Article 12🔗

1. For the purposes of this Code, "ship" includes all types of floating objects, including non-displacement ships and hydrofoils, which are used or may be used as a means of movement on water, namely:

a) for the carriage of passengers, carriage of cargo and luggage, carriage of mail, for fishing and other types of marine harvesting, for extraction of minerals, for the rescue of persons and ships at sea that are in danger, for towing of ships and other floating objects, for carrying out hydraulic engineering works and for recovery of property sunk in the sea;

b) for rendering special services (protection of fisheries, provision of sanitary-quarantine services, protection of the sea from pollution, etc.);

c) for scientific, educational and cultural purposes;

d) for sports events;

e) for other purposes.

2. For the purposes of this Code, "ship" is a surface floating platform and installation.

3. A small-sized ship is a ship less than 7 (seven) metres in length, intended for recreation and entertainment, business and economic activity, tourist, sports and other purposes, regardless of the type, origin and navigation area of the ship.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 13🔗

Under the Code, a "fishing ship" is any ship used for fishing and other types of marine harvesting. Fishing gear is an integral part of the ship. Damage to it by another ship is considered a maritime incident.

Article 14🔗

1. A shipowner is the owner of a ship — a natural or legal person registered in the relevant book of the State Register of Ships of Georgia, unless "shipowner" is otherwise defined in the legislation of Georgia.

2. The shipowner may appoint his representative — a natural or legal person who shall exercise those rights and perform those duties which arise from the Maritime Labour Convention of the International Labour Organization of 23 February 2006 (MLC 2006), taking into account its amendments. The said person may be the same person who is appointed in respect of a ship of 500 tonnes or more gross tonnage, and is certified in accordance with the International Management Code for the Safe Operation of Ships and for Pollution Prevention (ISM Code), which was adopted by the International Maritime Organization by Assembly resolution A.741(18) of 4 November 1993 and in which amendments were made by Maritime Safety Committee resolution MSC.104(73) of 5 December 2000.

3. If, for the fulfilment of the provisions arising from the Maritime Labour Convention of the International Labour Organization of 23 February 2006 (MLC 2006), a natural or legal person other than the shipowner defined by paragraph 1 of this Article is appointed, the said person shall be indicated as the shipowner in the Maritime Labour Compliance Declaration and the Maritime Labour Certificate, as well as in other certificates arising from the Maritime Labour Convention.

4. The shipowner shall ensure:

a) the seaworthiness of the ship and the safety of navigation;

b) the prevention of damage to persons, the ship and cargo;

c) the technical soundness of the ship;

d) the creation of safe working conditions for the members of the ship's crew;

e) the provision of the ship with food, water and lubricants and fuel materials;

f) the creation of normal living conditions for the members of the ship's crew and passengers;

g) the performance of other duties imposed by the legislation of Georgia and the norms of international law.

Law of Georgia No. 490-LHG I of 13 July 2000, No. 28, 24 July 2000, Art. 87

Law of Georgia No. 69-LHG I of 27 June 2008, No. 12, 14 July 2008, Art. 91

Law of Georgia No. 4622 of 11 December 2015 – website, 23 December 2015

Law of Georgia No. 3043 of 31 May 2023 – website, 13 June 2023

Article 15🔗

The terms used in this Code, which are indicated in the chapters below, are used with the following meaning:

a) (removed – 5 June 2012, No. 6386);

a¹) (removed – 31 May 2023, No. 3043);

b) (removed – 10 May 2022, No. 1547);

b¹) For the purposes of this Code – “port unit” – an independent legal entity located on the territory of a Georgian port, established in a legal form provided for by Georgian legislation, which has hydrotechnical structures, infrastructure intended for cargo operations and the corresponding territory, and for which a maritime water area with the appropriate status is allocated. A common maritime water area or part of a water area may be allocated for two or more port units. The term “port unit” does not include port infrastructure for military purposes;

b²) very serious marine casualty – for the purposes of investigation – a marine casualty that resulted in the loss of seaworthiness of the ship, the death of a person, or significant pollution/damage to the natural environment;

b³) serious marine casualty – for the purposes of investigation – a casualty that is not classified as a very serious marine casualty and involves fire or explosion on board the ship, its collision, contact, grounding, damage caused by bad weather or contact with ice, cracking of the ship's hull or serious structural damage, or another casualty:

b3.a) which causes the shutdown of the ship's main engines, serious damage to the living quarters of its crew and passengers, serious structural damage to the ship's hull and the breach of its integrity, and other consequences;

b3.b) which makes the movement of the ship impossible or causes pollution of the environment (regardless of the amount of substances discharged into the sea) or during which the ship requires towing or assistance from the shore;

b⁴) less serious marine casualty – for the purposes of investigation – a casualty that is not a very serious marine casualty or a serious marine casualty;

b⁵) marine incident – for the purposes of investigation – an event or a combination of events which, although not classified as a marine casualty, affects maritime safety. A marine incident may involve a technical malfunction of the ship, a malfunction of its equipment or navigational difficulty, which may impede the ship or create a danger to it, persons on board the ship or the natural environment, but does not cause damage or serious loss;

c) In Chapter V – “Captain of a maritime port” – means the captain of every non-military port of Georgia, including the captain of a fishing port;

d) In Chapter VI – “pilotage service” – means a service that carries out navigation communication by maritime pilots at the approaches to ports, in the internal waters of port units and when escorting ships between ports;

e) In Chapter VII – "property sunk in the sea" – means a ship sunk in the territorial sea or internal waters of Georgia, as well as a ship cast up on shallow waters, rocks and other places, its wreckage, equipment, cargo and other items;

f) In Chapter XXI – "scope of liability of the shipowner" – means the scope of liability of the shipowner who owns a ship flying the state flag of Georgia. The liability of the shipowner and the operator of a nuclear ship flying the state flag of a foreign country shall be determined by the legislation of the state of the flag of that ship, but if its scope is lower than that determined by this Code, the relevant provisions of this Code shall apply;

g) In Chapter XXII – "privileged claims" – means a case where the dispute is heard in Georgia;

h) In Chapter XXIII – "sea protest" – means a case where the sea protest is submitted to a notary and/or the relevant person of Georgia;

i) In Chapter XXIV – "claim and action" – means a case where the relevant relations are regulated by this Code, and the provisions of Articles 364 and 374 of the Code apply only to relations originating in Georgia;

j) The rights and obligations of the parties under a contract for the carriage of cargo by sea (Chapter VIII), a contract for the carriage of passengers by sea and the carriage of baggage (Chapter IX), a sea cruise (Chapter X), the chartering of a ship for a definite period (Chapter XI), the chartering of a ship without a crew (Chapter XII), a maritime mortgage (Chapter XIII), a towage contract (Chapter XIV) and a contract of marine insurance (Chapter XV) shall be determined by the law of the place of conclusion, unless otherwise provided by agreement of the parties.

Law of Georgia No 6386 of 5 June 2012 – website, 19.06.2012.

Law of Georgia No 6545 of 22 June 2012 – website, 04.07.2012.

Law of Georgia No 6546 of 22 June 2012 – website, 04.07.2012.

Law of Georgia No 4622 of 11 December 2015 – website, 23.12.2015.

Law of Georgia No 1547 of 10 May 2022 – website, 24.05.2022.

Law of Georgia No 3043 of 31 May 2023 – website, 13.06.2023.

Law of Georgia No 683 of 12 June 2025 – website, 16.06.2025.

Article 16🔗

1. (deleted – 31.05.2023, No 3043).

2. (deleted – 31.05.2023, No 3043).

3. The State shall not be liable for the obligations of a shipping company, just as a shipping company shall not be liable for the obligations of the State, regardless of the place of registration of the shipping company, its organisational-legal or ownership form.

4. A shipping company founded by the State shall be liable only for the obligations assumed by the company, with its own property.

5. A shipping company founded by the State shall not be liable for the performance of obligations assumed by other shipping companies founded by the State

Law of Georgia No 490-LHG I of 13 July 2000, No 28, 24.07.2000, Art. 87

Law of Georgia No 3043 of 31 May 2023 – website, 13.06.2023.

Article 17. (Repealed)🔗

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 18🔗

The right to sunken property in the territorial waters or internal waters of Georgia (a ship, its wreckage, equipment, cargo and other), as well as relations related to this property shall be determined by this Code and other legislative and subordinate normative acts of Georgia.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 19🔗

1. Relations related to general average shall be regulated by the legislation of the country in whose port the ship entered after the event causing the general average, unless otherwise provided by the parties.

2. If the parties whose interests were affected by the general average are residents of Georgia, then the legislation of Georgia shall apply, unless otherwise provided by the parties.

3. Material liability for general average shall be distributed in accordance with Articles 273-289 of this Code.

Article 20🔗

1. Compensation for damage caused by collision of ships in territorial and internal waters shall be regulated by the legislation of the state in whose territory the collision occurred.

2. If the collision occurred on the high seas and a dispute related to the collision is considered in Georgia, the rules set out in Chapter XVII of the Code shall apply.

3. If the colliding ships sail under the flag of the same country and the collision does not affect the interests of a third party, then the law of the state of the ship's flag shall apply regardless of where the collision occurred.

Article 21🔗

In the event of nuclear damage caused on the territory of Georgia, including in the territorial waters of Georgia, by a ship equipped with a nuclear power installation (hereinafter – "nuclear ship"), the rules of Chapter XIX of this Code shall apply.

Article 22🔗

If the damage caused by a ship is not determined by Articles 20 and 21 of this Code, compensation for the damage shall be regulated by the legislation of the state where the act causing the damage was carried out or where there was another circumstance that created the basis for a claim for compensation for the damage, and if the damage was caused on the high seas by a ship flying the flag of Georgia − by the legislation of Georgia.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 23🔗

1. The matter of reward for the salvage of a ship or other object in territorial and internal waters shall be regulated by the legislation of the state in whose territory the salvage occurred, unless otherwise provided by agreement of the parties, and if this occurred on the high seas and a dispute arising in connection with the salvage is considered in Georgia, – the rules of Chapter XX of the Code shall apply.

2. If the salvaged and the salving ships sail under the flag of one state, the matter shall be considered in accordance with the legislation of that state, regardless of the place of salvage.

3. The reward allocated for the salvage between the shipowner and the crew of the salving ship, as well as between the members of this crew, shall be distributed in accordance with the law of the state of the ship's flag.

Article 24🔗

The application of foreign legislation and customs of trade navigation in contracts provided for by this Code is possible if the parties agree on this, but shall not be applied if it contradicts the Constitution of Georgia.

Article 25🔗

A property dispute related to navigation in which natural or legal persons of foreign countries participate may, by agreement of the parties, be referred for consideration to a court or arbitration of a foreign country.

Article 26🔗

If an international treaty or convention of Georgia, of which Georgia is a member, contains rules different from this Code, the rules of the international treaty or convention shall apply.

Article 27🔗

1. Taking into account the peculiarities of maritime navigation, civil, administrative and other relations, if they are not regulated by this Code, are regulated by the civil, administrative and other relevant legislation of Georgia, by analogy of law or by the general principles of the legislation of Georgia.

2. Maritime navigation, in addition to the legislation indicated in the first paragraph of this Article, is regulated by resolutions adopted by the International Maritime Organization (IMO) and its bodies.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 27¹🔗

The arrangement of gambling and/or profitable games on all types of floating objects in the internal maritime waters of Georgia and the territorial sea of Georgia established by the Law of Georgia "On the Maritime Space of Georgia" is regulated by the Law of Georgia "On Lotteries, Gambling and Profitable Games".

Law of Georgia of 9 February 2023 No. 2591 – website, 24.02.2023.

Article 27²🔗

1. The Transport Safety Investigation Bureau of the Ministry of Economy and Sustainable Development of Georgia (hereinafter – the Investigation Bureau) conducts a safety investigation of a very serious marine casualty/marine incident and a serious marine casualty/marine incident (hereinafter – the investigation), the purpose of which is to improve maritime safety and prevent marine casualties/marine incidents. The purpose of the investigation is not to establish the guilt or responsibility of a person for the occurrence of the marine casualty/marine incident. The investigation shall be conducted independently of, and without interference with, judicial, administrative and investigative bodies.

2. The Investigation Bureau shall be functionally independent from the Agency, the shipowner and other persons whose interests and/or tasks may conflict with the interests of the Investigation Bureau or the tasks assigned to it and/or influence its objectivity.

3. In addition to a very serious marine casualty/marine incident and a serious marine casualty/marine incident, the Investigation Bureau may also conduct an investigation of a less serious marine casualty/marine incident. In this case, the Investigation Bureau shall assess how important it is to conduct the investigation, taking into account the severity of the marine casualty/marine incident that occurred, its impact on maritime safety, the type of ship and the characteristics of the cargo.

4. The relevant authorized persons shall immediately provide the Investigation Bureau with:

a) the right of access/admission to the site of the marine casualty/marine incident, as well as to the site where fragments of the ship/its machinery are located, and to perform actions necessary for the investigation;

b) the right to inspect and examine the ship involved in the marine casualty/marine incident, its components, as well as those objects on board the ship or related to the marine casualty/marine incident that are important for the investigation of the marine casualty/marine incident;

c) the right to interview an eyewitness to the marine casualty/marine incident, as well as a person who has or may have any connection with the marine casualty/marine incident;

d) the right to receive a copy of the forensic medical examination report of a person who died as a result of the marine casualty/marine incident;

e) the right to exercise other powers provided for by the legislation of Georgia.

5. The Investigation Bureau shall be responsible for protecting information obtained as a result of the investigation of a marine casualty/marine incident in order to ensure maritime safety. Disclosure of this information shall be permissible only for the purpose of conducting the investigation of the marine casualty/marine incident. The said information may become available to a third party only in cases provided for by the legislation of Georgia, on the basis of an appropriate decision of the relevant law enforcement body.

6. A case/incident occurring in the field of maritime transport in which a high probability of the occurrence of a very serious marine casualty/marine incident or a serious marine casualty/marine incident is not apparent shall be investigated by the shipowner, and, upon the request of the Investigation Bureau, the shipowner shall submit an investigation report to it.

7. For the investigation of a marine casualty/marine incident that falls within the sphere of competence of different agencies, the Government of Georgia may establish an interagency commission.

8. Upon the occurrence of a marine casualty/marine incident, appropriate notification shall be sent to all substantially interested States. The Investigation Bureau shall be obliged to send notification to the relevant international maritime organizations regarding a very serious marine casualty/marine incident and a serious marine casualty/marine incident that has occurred.

9. The master, skipper, shipowner, or agent of a ship flying the flag of Georgia shall be obliged to immediately notify the Investigation Bureau of a marine casualty/marine incident that has occurred.

10. The relevant administrative body or legal entity shall be obliged to ensure the protection of the site of the marine casualty/marine incident and the creation of appropriate conditions for the work of the Investigation Bureau.

11. An investigation report shall be prepared in the appropriate form determined for the type and significance of the marine casualty/marine incident, taking into account the significance of the investigation results. The report shall reflect the purpose of the investigation. Where necessary, the said report may contain safety recommendations.

12. The safety recommendations provided for by paragraph 11 of this Article shall be given to the Agency and, also, depending on the specifics of the recommendations, to another body or agency.

13. Expenses related to an investigation carried out by the Investigation Bureau shall be reimbursed from the State Budget of Georgia.

14. The procedure for conducting an investigation shall be approved by the Minister of Economy and Sustainable Development of Georgia.

Law of Georgia No. 683 of 12 June 2025 – website, 16.06.2025.

Article 28🔗

a) ship:

a.a) large ship − a floating craft whose registered tonnage is 100 tonnes or more than 100 tonnes;

a.b) small ship − a floating craft whose registered tonnage is less than 100 tonnes, including a small-size ship;

a.c) ship under construction − a floating craft under construction that can be identified by the hull number of the ship under construction assigned by the shipbuilder or otherwise. A ship under construction may be registered in the State Register of Ships of Georgia, for which the joint consent of the future shipowner and the shipbuilder is required. The fact of registration of a ship under construction is not the only fact confirming its ownership and having legal force;

b) chief registrar − the director of the Agency;

c) registrar − a person to whom the chief registrar has delegated his/her powers in accordance with the procedure established by the Agency;

d) register − the State Register of Ships of Georgia, maintained by the Agency;

e) suspension of ship registration − suspension of ship registration provided for by this Code, on the basis of which the ship is temporarily deprived of the right to use the State Flag of Georgia;

f) removal of a ship from the register − cancellation of ship registration on the basis of an application by the shipowner or another authorised person, or in the case where the shipowner or another authorised person does not apply to the Agency for permanent or fixed-term registration of the ship before the expiry of the registration period of the temporarily registered ship;

g) termination of ship registration − cancellation of ship registration by a decision of the chief registrar, in accordance with paragraph 4 of Article 36 of this Code;

g¹) restoration of suspended ship registration − restoration of suspended ship registration provided for by subparagraph „e“ of this Article, on the basis of which the ship's right to use the State Flag of Georgia is restored;

g²) annual certification of ship registration − for a large ship − renewal of the annual certification of ship registration certificate and the ship radio station certificate, and for a small ship − renewal of the registration certificate and the ship radio station certificate (if any);

h) registration − temporary, fixed-term or permanent registration of a ship:

h.a) permanent registration − registration of a ship in the register for an indefinite period;

h.b) fixed-term registration − registration of a ship in the register for a definite period on the basis of a request by the shipowner or the ship operator;

h.c) temporary registration − registration of a ship in the register until fixed-term or permanent registration, in the cases established by the legislation of Georgia;

i) recognised agent – a person/organisation which, on the basis of a written contract concluded with the Agency, represents the Agency in relations with shipowners;

j) unique number − a sequence of digits, letters or other symbols used on an electronic certificate issued by the Agency or a recognised organisation for the identification of that certificate.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 29🔗

1. The right to use (sail under) the state flag of Georgia shall be granted to a vessel from the moment of its registration in the register.

2. (Removed – 31.05.2023, No. 3043).

3. All forms of ownership provided for by the legislation of Georgia shall apply to a vessel sailing under the state flag of Georgia.

4. Registration of a vessel in the register may be temporary, fixed-term or permanent, with or without the right to sail.

5. A vessel shall be registered in the register if it is:

a) property of the State of Georgia;

b) property of a natural or legal person of Georgia;

c) property of a shipowner of a foreign country who has an authorised representative in Georgia in accordance with the legislation of Georgia;

d) a vessel operated under a bareboat charter contract arising from this Code.

6. Georgia does not recognise parallel registration of a vessel, except in the cases provided for by paragraph 8 of this Article.

7. Georgia does not recognise the registration of a Georgian vessel in the appropriate register of another country if that vessel is not deregistered or its registration is not suspended in accordance with the procedure established by the legislation of Georgia.

8. In the case of a bareboat charter, a vessel may be registered in Georgia if, at the moment of the charter, the State of its flag agrees that the state registration of the vessel be carried out in the register. At the same time, the right to sail under the state maritime flag in that State must be suspended. In the case of registration of a vessel under the Georgian flag under a bareboat charter, the registration of ownership and other property rights related to the vessel (maritime mortgage and pledge) may remain in the vessel's principal register, and the vessel shall acquire the right to sail under the Georgian flag in accordance with the term of validity of the bareboat charter contract.

9. If a vessel is registered in the appropriate register of another country, its registration in Georgia is possible only after the suspension, termination or deregistration of the registration of that vessel in the register of the other country.

10. Liability for hoisting the state flag of Georgia on a vessel without the appropriate right shall be determined by the legislation of Georgia.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 30🔗

1. Registration in the ship register shall be carried out by the Agency, which shall issue the relevant certificates.

2. The Agency shall maintain the register and shall approve the rules for ship registration, maintenance of the register and recording of maritime mortgages.

3. A temporary registration certificate may be issued prior to permanent registration or prior to fixed-term registration, for a period of not more than 6 months. This period may be extended up to 1 year.

4. After the expiry of the 1-year period referred to in paragraph 3 of this Article, in a special case, on the basis of a written application by the shipowner, with the consent of the Chief Registrar, the validity period of the temporary registration certificate may be extended, but not by more than 1 (one) year. A temporary registration certificate shall give rise to the same rights and obligations as permanent registration.

Law of Georgia of 30 March 2007 No 4598-LHG I, No 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No 69-LHG I, No 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No 4222 – website, 10.03.2011

Law of Georgia of 5 June 2012 No 6386 – website, 19.06.2012

Law of Georgia of 11 December 2015 No 4622 – website, 23.12.2015

Article 31🔗

1. The Chief Registrar shall carry out the actions related to ship registration provided for by this Code.

2. The Registrar shall carry out the procedures related to ship registration within the scope of delegated powers.

3. The Chief Registrar may delegate the powers related to ship registration only to the following persons:

a) an employee of the Agency – the Registrar;

b) a public servant of Georgia;

c) a consular official of Georgia;

d) (deleted – 31.05.2023, No 3043);

e) a recognized agent – only for the purposes of issuing temporary registration certificates.

Law of Georgia of 27 June 2008 No 69-LHG I, No 12, 14.07.2008, Art. 91

Law of Georgia of 5 June 2012 No 6386 – website, 19.06.2012

Law of Georgia of 11 December 2015 No 4622 – website, 23.12.2015

Law of Georgia of 31 May 2023 No 3043 – website, 13.06.2023

Article 32🔗

1. The Register consists of books, namely:

a) the book of sea-going ships;

b) the book of inland navigation ships;

c) the book of bareboat charter;

d) the book of ships under construction.

1¹. The register referred to in paragraph 1 of this article may be maintained in electronic form, including, electronic certificates related to the registration of a ship may be issued.

1². Issues related to electronic certificates related to the registration of a ship are regulated by the Law of Georgia on Electronic Document and Electronic Trust Services.

2. Registration of one and the same ship is made at one and the same time in only one book of the register.

3. The right of ownership, other rights and encumbrances (maritime lien, maritime mortgage and others) over a ship are registered in the corresponding book of the register. Registration, deregistration or termination of registration in the register of a ship over which there is an encumbrance (maritime lien, maritime mortgage and others) shall be carried out only with the written consent of the person having the right of claim in whose favour such encumbrance is registered.

4. Registration in the bareboat charter book of a ship gives rise to the same rights and obligations as its permanent registration. The term of registration in the bareboat charter book of a ship is determined by the term of validity of the bareboat charter contract or in accordance with the period of suspension of registration of the ship in the appropriate register of another country.

4¹. Registration of a maritime mortgage or other encumbrance on a ship registered in the bareboat charter book is prohibited.

5. Registration in the ship register is the primary evidence of the right to use (navigate under) the state flag of Georgia.

6. The rules and conditions for registration of a small-size ship are determined by the Agency.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023

Article 33🔗

1. A vessel that may be used for international navigation shall be registered in the Register Book of International Navigation Ships, except where the vessel is registered under a bareboat charter.

2. A vessel that is not used for international navigation shall be registered in the Register Book of Inland Navigation Ships, except in the case of registration of a vessel under a bareboat charter and in the cases provided for by paragraphs 4 and 5 of Article 44¹¹ of this Code.

3. A vessel whose registration in the appropriate register of another country is also suspended and in respect of which the charterer of the vessel without a crew submits a written application for its registration as such shall be registered in the Register Book of Bareboat Charters.

4. At the request of the owner, a vessel under construction shall be registered in the Register Book of Ships under Construction only on the condition that the vessel can be identified taking into account the stage of its construction, in the shipbuilder's list of ships under construction or by any other means. The issue of registration of a vessel under construction shall be decided by the Chief Registrar. After completion of the construction of the vessel, if the shipowner confirms in writing his will to have it registered, the Chief Registrar shall effect the registration of the vessel.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Law of Georgia of 22 December 2018 No. 4106 – website, 10.01.2019.

Article 34🔗

1. A vessel in respect of which technical supervision is exercised in accordance with Chapter II¹ of this Code shall be registered in the register.

2. A small vessel whose age does not exceed 3 (three) years shall not be obliged to undergo technical supervision annually, unless otherwise provided by the legislation of Georgia.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 3 November 2009 No. 1923-LHG I, No. 35, 19.11.2009, Art. 233

Law of Georgia of 26 October 2010 No. 3750-LHG I, No. 62, 05.11.2010, Art. 390

Law of Georgia of 8 May 2012 No. 6171 – website, 25.05.2012.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 35🔗

1. Registration in the ship register is confirmed by a registration certificate.

2. A registration certificate may be temporary, term-based and permanent.

3. A temporary registration certificate may be issued until term-based or permanent registration.

4. Registration of a small ship and a small-size ship is permanent and shall be renewed annually.

5. The registration certificate of a large ship is subject to annual certification.

6. Bareboat charter registration is confirmed by a term-based registration certificate, the term of which is determined by the term of validity of the bareboat charter contract or in accordance with the term of suspension of the right to sail under the state's maritime flag in the appropriate register of a foreign country for the respective ship, which shall not exceed 2 calendar years. Bareboat charter registration may be extended for a subsequent period which, in the case of the consent of the state of the principal flag of the said ship, shall not be more than 2 calendar years.

7. A ship has a name which is assigned to it by the owner and which may be changed at the request of the shipowner.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023

Article 36🔗

1. Grounds for refusal of registration of a ship are:

a) non-compliance of the ship's condition with the maritime safety standards established by international treaties of Georgia or posing a risk of pollution of the marine environment;

b) absence of guarantees for the safety and health protection of persons employed on the ship;

c) existence of a preliminarily substantiated suspicion that the ship is used for criminal purposes, against international security, legal order, peace or the national interests of Georgia;

d) existence of circumstances provided for by paragraph 4 of this Article.

2. Grounds for suspension of registration of a ship in the ship register are:

a) (removed – 31 May 2023, No. 3043);

b) non-payment of a charge established by the legislation of Georgia;

c) existence of a proper written application by the registered shipowner;

d) non-compliance of the ship's condition with international maritime safety standards or posing a risk of pollution of the marine environment;

e) absence of guarantees for the safety and health protection of persons employed on the ship;

f) existence of a preliminarily substantiated suspicion that the ship is used for criminal purposes, against international security, legal order, peace or the national interests of Georgia;

g) existence of a relevant decision of a court or an administrative body;

h) expiry of the validity of the registration certificate, if before such expiry the shipowner does not request renewal of registration in accordance with paragraph 4 of Article 35 of this Code or certification of the registration certificate in accordance with paragraph 5 of the same Article;

i) existence of a decision of a recognized organization on suspension or removal of technical supervision of the ship.

3. Grounds for removal of a ship from registration are:

a) request of the shipowner or another authorized person;

b) deletion of the ship;

c) declaration of the ship as unfit for further operation and repair;

d) loss of the ship;

e) expiry of the bareboat charter (in case of registration of a bareboat charter);

f) request by the owner of the ship or another authorized person for early termination of the bareboat charter registration;

g) existence of a relevant decision of a court or an administrative body.

4. Grounds for termination of the ship's registration are:

a) loss by the ship of seaworthiness after registration or its destruction in another manner, including as a result of fire or sinking;

b) non-compliance of the ship's condition with the provisions of this Code and/or the conditions of the ship's registration;

c) non-compliance of the ship's condition with the standards of maritime safety, navigation security and protection of the marine environment established by international treaties of Georgia;

d) detention of the ship in a port of another state.

5. In the case provided for by paragraph 4 of this Article, the shipowner shall notify the Agency of such case.

6. In the case provided for by paragraph 4 of this Article, the decision on termination of the ship's registration shall be formalized by an individual legal act of the Chief Registrar.

7. In the case of submission of an application to the Agency by a person authorized to register a ship, or where there is a relevant ground, the Chief Registrar shall have the right to refuse the deregistration/termination of registration of the ship, if any liability or obligation related to the ship towards the Agency has not been performed in full or has been performed in part. The Agency shall not issue a certificate of deregistration if the ship registration certificate or other requested certificates are not surrendered to it.

8. (Repealed – 11 December 2015, No. 4622).

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10 April 2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14 July 2008, Art. 91

Law of Georgia of 5 June 2012 No. 6386 – website, 19 June 2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23 December 2015

Law of Georgia of 31 May 2023 No. 3043 – website, 13 June 2023

Article 37. (Repealed)🔗

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14 July 2008, Art. 91

Article 38🔗

1. A ship shall be admitted to navigation if its condition complies with the requirements for navigation safety, protection of the marine environment and maritime security established by Georgia's international treaties or Georgian legislation.

2. The compliance provided for by paragraph 1 of this Article shall be determined by the Agency and/or a recognized organization in accordance with Chapter II¹ of this Code.

Law of Georgia of 5 June 2012 No. 6386 – website, 19 June 2012

Article 39🔗

1. A vessel registered in Georgia shall have the following main documents:

a) registration certificate;

b) document on manning the vessel's crew with a safe number of members (certificate of manning with the minimum safe number of the vessel's crew);

c) vessel's logbook;

d) engine logbook (in the case of a vessel with a mechanical engine);

e) vessel's radio station logbook (where necessary);

f) vessel's sanitary certificate;

g) vessel's radio station certificate and other documents in accordance with the radio communication regulations;

h) list of the vessel's crew members;

i) other documents (certificates, etc.) provided for by the international treaties of Georgia.

2. The logbooks referred to in this Article shall be kept in the manner established by the Agency. Completed logbooks shall be kept on the vessel for 3 years.

3. The material or electronic versions of the main documents referred to in this Article shall be kept on the vessel. The vessel shall have access to clear and simple instructions for confirming the information contained in the certificate, including for the electronic certificate, inter alia the periodic attestation of the said certificate, as well as its origin, legal force (validation) and authenticity.

4. Special service and sports vessels may not have a tonnage certificate. The displacement of a special service vessel may be determined under a simplified procedure, which shall be confirmed by the issuance of the relevant certificate.

5. A small vessel shall not be obliged to have an engine or sanitary logbook, unless otherwise established by the vessel owner.

6. Georgian vessels engaged in international navigation shall, in addition to the documents referred to in paragraph 1 of this Article, have other mandatory certificates provided for by the international treaties of Georgia.

7. The Agency may, on the basis of expediency, allow an exception from the obligations provided for by this Article.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 5 July 2018 No. 3072 – website, 11.07.2018

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023

Article 40🔗

1. The certificate of ship registration shall be issued by the Agency in accordance with the procedure established by it.

2. The Agency may delegate its authority to recognised organisations and technical supervision organisations, so that they issue the certificates provided for by the international treaties of Georgia.

3. The certificate of the ship's radio station shall be issued by the Agency in agreement with the National Communications Commission of Georgia.

4. In an exceptional case, the Agency may, in agreement with a recognised organisation provided for by Chapter II¹ of this Code, issue a single-voyage permit without the certificates defined by this Code, in the absence of certificates or in case of non-compliance with the required standards, if this does not contradict the obligations provided for by the international treaties of Georgia.

5. The Agency shall be entitled, in agreement with a technical supervision organisation provided for by Chapter II¹ of this Code, to issue a single-voyage permit for the performance of international navigation to a ship engaged in inland navigation, if the purpose of such navigation is the carrying out of the ship's current and mandatory repair works.

6. The Agency shall be entitled, in agreement with a technical supervision organisation provided for by Chapter II1 of this Code, to issue a single-voyage permit for the performance of international navigation to a ship that has been purchased and is located outside the boundaries of Georgia, has been registered in the register of inland navigation ships and intends to move to the port of registration.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023

Article 41🔗

Recognition of the certificates of dimensions, passenger, cargo mark and ship's radio station of a ship entering a port of Georgia under the flag of another country shall be carried out on the basis of those international treaties to which Georgia is a party.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Article 42🔗

Alienation of a ship owned by the State of Georgia to another country, to a natural or legal person of another country, may be carried out in accordance with the established procedure only with the permission of the Government of Georgia.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 24 September 2013 No. 1286 – website, 08.10.2013

Article 43. (repealed)🔗

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Article 44. (repealed)🔗

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Article 44¹🔗

For the purposes of this Chapter, the terms used herein have the following meaning:

a) authorization — the appropriate act of delegation (transfer) of authority by Georgia to a recognized organization;

b) ship — all types of ships provided for by the international treaties of Georgia;

c) Georgian ship — a ship registered in the State Register of Georgian Ships in accordance with the provisions of this Code and flying the State Flag of Georgia;

d) shipowner — the natural or legal person who owns the ship;

e) cargo ship — a ship that is not a passenger ship;

f) passenger ship — a ship that accommodates more than 12 passengers and on which a passenger is any person, except:

f.a) the master, crew members and other persons employed on the ship;

f.b) a child under 1 (one) year of age;

g) cargo ship safety radio certificate — a certificate provided for by the amended Radio Regulations of the International Convention for the Safety of Life at Sea;

h) class certificate — a document developed and issued by recognized organizations on the basis of the rules and procedures developed and published by them, which confirms the ship's compliance with specified purposes or service;

i) inspection and survey — the necessary inspection and survey of a Georgian ship on the basis of the international treaties of Georgia, the acts, standards, resolutions and recommendations of the International Maritime Organization and the International Telecommunication Union;

j) international convention — a convention of the International Maritime Organization or the International Labour Organization to which Georgia is a party;

k) location — the location of the registered office, the place of the central administration or the place of the principal activity of the organization;

l) ship operator — the shipowner or any other person who may be the manager or the bareboat charterer of the ship, on whom the shipowner has imposed responsibility for the management of the ship and who, upon assuming this responsibility, has consented to fulfil all obligations provided for by the legislation of Georgia and to assume the appropriate responsibility;

m) control in relation to an organization — rights, contracts or other means defined by law or factual means which, unilaterally or jointly, give a person the possibility to exercise decisive influence over a legal person for the performance of the tasks defined by this Code;

n) rules and procedures — requirements imposed by a recognized organization with respect to the design, construction, equipment, maintenance and survey of a ship, which are agreed with the Agency;

o) Minister — the Minister of Economy and Sustainable Development of Georgia;

p) organization — a legal person, in particular a classification society or another private institution, its branch, another person subject to its control, which jointly or separately carry out activities falling within the scope of this Code;

q) ship inspector − a person registered with the Agency as a ship inspector in accordance with the requirements of this Code;

r) recognised organisation − an organisation recognised in accordance with this Code;

s) mandatory certificate − a certificate issued by Georgia or on behalf of Georgia in accordance with international treaties;

t) IMO Resolution A.1070 (28) − Resolution of the International Maritime Organization of 4 December 2013 on the International Maritime Organization Instruments Implementation Code (III Code);

u) IMO Resolution A.739 (18) − Resolution of the International Maritime Organization of 4 November 1993 on Guidelines for the Authorization of Organizations Acting on Behalf of the Administration;

v) MSC/Circ. 710 and MEPC/Circ. 307 circulars – circulars of the International Maritime Organization of 9 October 1995 on the Model Agreement for the Authorization of Recognised Organizations Acting on Behalf of the Administration;

w) transferring organisation − upon a ship's change of class, the recognised organisation whose class the ship held;

x) receiving organisation − upon a ship's change of class, the recognised organisation whose class the ship will hold.

Law of Georgia No. 6386 of 5 June 2012 – website, 19.06.2012.

Law of Georgia No. 4622 of 11 December 2015 - website, 23.12.2015.

Law of Georgia No. 3043 of 31 May 2023 – website, 13.06.2023.

Article 44²🔗

1. An organisation recognised by the European Union shall have the right to exercise the powers of a recognised organisation in respect of a ship flying the State flag of Georgia, subject to compliance with the preconditions provided for by this Article.

2. When exercising the powers of a recognised organisation in respect of a ship flying the State flag of Georgia, every such organisation shall be obliged to hold preliminary consultations with the Agency on which powers it requests to be delegated.

3. As a result of the consultations, the agreement between the Agency and the organisation shall be concluded in writing. This agreement must meet the requirements provided for by Article 44¹⁵ of this Code and must contain a statement that, in relation to a ship flying the State flag of Georgia, its activities are regulated by the legislation of Georgia.

4. The Agency shall be entitled to develop, for recognised organisations, mandatory instructions on the inspection, survey and certification of Georgian ships in accordance with international treaties and IMO Resolution A.1070 (28).

5. The Agency shall, in accordance with this Code, supervise and control the work performed by recognised organisations in accordance with international standards.

6. Georgia shall be entitled to receive financial compensation from a recognised organisation if, in accordance with the legislation of Georgia, it has been established by a judgment of a court or an arbitral award that pecuniary loss or damage, physical injury or loss of life was caused by an act of the recognised organisation.

7. Any dispute relating to any matter determined by the written agreement concluded between the Agency and a recognised organisation shall be resolved in accordance with the legislation of Georgia, unless the parties agree otherwise.

Law of Georgia No. 6386 of 5 June 2012 – website, 19.06.2012

Law of Georgia No. 4622 of 11 December 2015 – website, 23.12.2015

Article 44³🔗

1. The Agency has the right to transfer, in full or in a limited manner, to a ship inspector or a recognized organization the authority to carry out the following actions: inspection and survey, marking of the load line mark, measurement of tonnage, monitoring of the construction and repair of a ship, issuance and renewal of a certificate in accordance with international treaties, issuance and renewal of a certificate on exemption from compliance with the requirements of international treaties, issuance of a certificate confirming compliance with Article 44¹² of this Code.

2. The Agency confirms all certificates issued in accordance with international treaties which indicate exemptions from international treaties, regardless of whether they are permanent or temporary, as well as all amendments made to such certificates.

3. Given the specific nature of the cargo ship radio station certificate, a private organization that is recognized by the Agency, has appropriate practice and has qualified personnel may be granted the authority to independently assess radio communication safety.

4. In order to receive the authority provided by paragraph 3 of this article, a private organization must meet the requirements defined by this Code and established and published by the Agency. The recognition of a private organization and the transfer of duties to it shall be carried out on the basis of a decision adopted by the Agency.

5. The Agency has the right to revoke the recognition of a private organization that no longer meets the requirements provided by paragraph 4 of this article or whose performed work is assessed as unsatisfactory.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44⁴🔗

A written agreement concluded between the Agency and a recognized organization may determine the obligation of the recognized organization to establish a representation in Georgia.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44⁵🔗

1. An organization recognized by the European Union shall have the right to submit a draft written agreement to the Agency. This draft shall comply with the requirements of circulars MSC/Circ. 710 and MEPC/Circ. 307. The Agency shall be obliged to examine the draft written agreement submitted in accordance with this paragraph, adopt a decision no later than 2 weeks after its submission, and notify the applicant organization of the adoption of the decision.

2. An organization registered in Georgia that meets the requirements defined by the Agency shall have the right to submit a draft written agreement to the Agency. The draft written agreement and the procedure for its consideration shall comply with the requirements of the first paragraph of this Article. The draft written agreement shall also contain complete information and evidence, upon the submission of which, if the Agency's requirements are met, the Agency shall verify the compliance of the applicant organization with the requirements established by the legislation of Georgia.

3. The Agency shall have the right, proceeding from expediency, not to agree to a draft written agreement submitted in accordance with the first and 2nd paragraphs of this Article.

4. Responsibility for the submission of forged documents or false information by an organization shall be determined by the relevant legislation of Georgia.

5. An organization shall begin exercising its powers after the signing of a written agreement with the Agency in respect of a ship flying the state flag of Georgia. This agreement shall enter into force after public publication in the manner established by the legislation of Georgia.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44⁶🔗

1. Georgia shall be entitled, taking into account the degree of responsibility of a recognized organization determined by a court or arbitral decision, to receive compensation from the recognized organization, if a court or arbitration imposes responsibility on Georgia, including the payment of compensation to the injured parties for damage arising from any incident connected with the loss or damage of property or with personal injury or death and caused by the culpable act of the recognized organization or its body, employee, agent or another person acting on behalf of this organization.

2. The Agency and the recognized organization may agree on a limitation of the responsibility provided for by the first paragraph of this Article.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44⁷🔗

1. If the Agency considers that a recognized organization no longer has the ability to perform the functions provided for by Article 44³ of this Code, the Agency has the right to adopt a decision on the suspension or cancellation of the recognition of this organization. The Agency shall immediately notify such organization of the suspension or cancellation of its powers.

2. If the recognition of an organization is cancelled or suspended by the European Commission, this organization automatically loses, or its right to exercise the powers of a recognized organization in respect of a ship flying the state flag of Georgia is temporarily suspended.

3. In accordance with paragraph 1 of this Article, the powers of an organization shall be suspended or cancelled by an appropriate decision of the Agency, which shall be published publicly.

4. When adopting a decision on suspension or cancellation provided for by this Article, the Agency shall be guided by the interests of safety and environmental protection.

5. If the Agency suspends the recognition of a recognized organization, the powers of this organization to issue and renew certificates for a Georgian ship provided for by this Code shall be suspended for the same period.

6. Paragraphs 1–5 of this Article shall not affect the validity of those certificates that were issued before the suspension or cancellation of the recognition of the organization.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44⁸🔗

1. The Agency shall immediately notify the International Maritime Organization (IMO) of the suspension or cancellation of the recognition of a recognized organization.

2. The decision of the Agency on the suspension or cancellation of the powers of an organization shall be published publicly in accordance with the established procedure.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44⁹🔗

1. The Agency shall be obliged to monitor the work of recognized organizations acting on behalf of Georgia in order to make sure that they properly perform the functions provided for by Article 44³ of this Code.

2. The Agency shall monitor the work of a recognized organization at least once every 2 years and shall be obliged to ensure the publication of the monitoring results report no later than 31 December of the following year.

3. A recognized organization having the powers conferred by the Agency in accordance with Article 44⁵ of this Code shall be obliged to make the results of the quality management system available to the Agency annually.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44¹⁰🔗

1. The rights defined by this Article are granted to the ship inspector for the purpose of carrying out the proper procedures of assessment, control or monitoring defined by Article 44⁹ of this Code.

2. The ship inspector is entitled, in the exercise of his/her powers, alone or accompanied by the person whose attendance he/she deems necessary, and with the equipment and material means which he/she deems necessary:

a) to board any ship of Georgia, to obtain all necessary information, both in port and during navigation, to control and inspect any ship of Georgia which, at the time of inspection, is under the technical supervision of a recognised organisation;

b) to enter, control, inspect and examine any immovable property located in Georgia or elsewhere, except private property, if there are sufficient grounds that it is the property of a recognised organisation to be assessed or that this recognised organisation uses it for the purposes of its activity;

c) to inspect data registered in a database in any form, books and documents kept on a ship of Georgia provided for by subparagraph „a“ of this paragraph, or in the immovable property referred to in subparagraph „b“ of the same paragraph or in another place (except private property), if he/she has sufficient grounds to presume that they contain information of interest to him/her, or if the admission is directly related to the purpose for which he/she has been granted the right to conduct an inspection. The ship inspector is entitled to make copies of the said information or extracts, if he/she has sufficient grounds to presume that this information or extracts may be used as evidence in connection with criminal or administrative proceedings related to the failure to fulfil the obligations imposed by this Code.

3. The operator, captain or other seafarer of a ship of Georgia provided for by subparagraph „a“ of paragraph 2 of this Article, or a recognised organisation or person responsible for the immovable property referred to in subparagraph „b“ of the same paragraph, except private property, are obliged to provide the ship inspector with assistance and the necessary information required for the exercise by the inspector of the powers granted to him/her.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44¹¹🔗

1. All ships of Georgia to which the international treaties of Georgia apply shall be under the technical supervision of a recognized organization and shall have the class assigned by this organization.

2. Under the technical supervision of a recognized organization, in addition to the ships referred to in paragraph 1 of this article, there shall be all ships of Georgia that are engaged in international navigation or whose register tonnage is 500 tons or more than 500 tons, regardless of the navigation area.

3. The requirements of this article shall not apply to pleasure yachts.

4. A ship of 500 or more register tons of gross tonnage in state ownership of Georgia, used for the training and instruction of seafarers, may carry out international navigation.

5. The conditions of technical supervision, the technical supervision standard and the procedure for issuing international certificates for the ships provided for by paragraph 4 of this article shall be agreed by the recognized organization with the Agency.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Law of Georgia of 22 December 2018 No. 4106 – website, 10.01.2019.

Article 44¹²🔗

Ships of Georgia shall be built in accordance with the requirements for the installation of electrical mechanisms, machinery and control mechanisms determined by a recognized organization and shall comply with these requirements.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44¹³🔗

1. A recognized organization shall cooperate with the Agency and ship inspectors in order to facilitate the elimination of defects and deficiencies existing in relation to ships assigned to its class.

2. A recognized organization shall provide the Agency with all essential information on the assignment, transfer, change, suspension or withdrawal of class for Georgian ships.

3. A recognized organization shall publish on its official website information on the assignment, transfer, change, suspension or withdrawal of class for Georgian ships, including information on planned inspections, recommendations, the conditions of class issued for the ship and the conditions of operation and restrictions of operation of ships flying the state flag of Georgia assigned to its class.

4. A recognized organization enjoying authority deriving from Article 44⁵ of this Code shall be prohibited from issuing a certificate for a Georgian ship if that ship has had its class withdrawn for safety purposes or is in the process of class change, until the Agency expresses its opinion as to whether a full inspection is necessary.

5. A certificate issued in violation of the conditions of paragraph 4 of this Article shall be void.

6. In the case of a change of class by a Georgian ship:

a) the transferring organization shall provide the receiving organization with information on all future planned inspections, recommendations and the conditions of class issued for the ship, the conditions of operation and restrictions of operation;

b) at the time of transfer, the transferring organization shall hand over to the receiving organization the complete archival records of the ship;

c) the receiving organization shall have the right to issue certificates for the ship only after all planned inspections and control have been conducted at a satisfactory level and in accordance with the conditions determined by the transferring organization, after all future recommendations and the conditions of class issued for the ship in the previous period have been fully satisfied;

d) before issuing the appropriate certificate for the ship, the receiving organization shall receive from the transferring organization information on the date of issue of the certificate, in order to specify the location and the measures required for each planned inspection, recommendation and condition of class assignment.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44¹⁴🔗

1. The Director of the Agency shall be authorized to issue an Order within the scope of his/her authority in order to regulate any matter deriving from this Chapter.

2. By Order of the Director of the Agency, additional requirements related to any matter deriving from this Chapter may be determined.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 44¹⁵🔗

The written agreement on behalf of Georgia shall be signed by the Agency, and on behalf of the recognized organization − by its authorized representative. This agreement shall be fully based on the provisions of the model contract provided for by Annex 2 to IMO Resolution A.739 (18) and by circulars MSC/Circ. 710 and MEPC/Circ. 307.

Law of Georgia No. 6386 of 5 June 2012 – website, 19.06.2012.

Article 44¹⁶🔗

1. Technical supervision of ships not subject to the supervision of a recognized organization, including small and small-size ships, shall be carried out by an organization to which accreditation is granted by the Legal Entity of Public Law − the single national accreditation body − the Accreditation Centre. The Legal Entity of Public Law − the single national accreditation body − the Accreditation Centre shall determine the procedures for granting accreditation.

2. A recognized organization shall also have the right to carry out technical supervision of the ships referred to in paragraph 1 of this Article in accordance with the requirements approved by the Agency.

3. The authorized representative of the Agency shall participate in the accreditation process.

4. For the purposes of accreditation, the necessary requirements for recognition of an organization shall be determined by the Agency by its normative act. The Agency shall also establish/approve the technical standard in accordance with which the organization shall carry out technical supervision of the ships referred to in paragraph 1 of this Article.

5. An organization accredited in accordance with paragraph 1 of this Article shall determine the requirements for small and small-size ships to go to sea and the navigation limits.

Law of Georgia No. 6386 of 5 June 2012 – website, 19.06.2012.

Article 44¹⁷🔗

1. The ship inspector or ship surveyor working on behalf of the Agency or a recognized organization shall, for the purposes of inspection/survey, ship certification or Article 44³ of this Code, have the following rights:

a) to board a ship flying the flag of Georgia;

b) to carry out all necessary inspections and surveys required by the conventions of the International Maritime Organization to which Georgia is a party;

c) to require the elimination of recorded non-conformities and defects;

d) to prohibit the ship from sailing if there is a reasoned presumption that the recorded non-conformities constitute a serious violation of the conventions of the International Maritime Organization, threaten the safety or health of seafarers on board the ship, or are directed against maritime security.

2. The ship inspector or ship surveyor shall take all appropriate measures to prevent the unjustified detention of the ship.

3. The ship inspector or ship surveyor carrying out the inspection/survey of a ship with respect to compliance with the standards of the International Labour Organization's Maritime Labour Convention, 2006, of 23 February 2006 (MLC 2006), shall ensure that a copy of the inspection report is transmitted to the ship's master. At the same time, a copy of the inspection report shall be placed in a conspicuous place on the ship, as well as sent to the Agency.

4. The shipowner, the charterer or the company shall be prohibited from obstructing the ship inspector or ship surveyor in the course of the performance of his/her duties.

Law of Georgia No. 3043 of 31 May 2023 – website, 13.06.2023.

Article 44¹⁸🔗

1. For the purposes of this Article, a Georgian ship engaged in international navigation, the gross tonnage of which exceeds 500 tonnes and which is built for Georgia, shall, prior to the entry into force of the Maritime Labour Convention (MLC 2006) of the International Labour Organization of 23 February 2006, be considered an existing ship.

2. An existing ship shall comply with those requirements relating to accommodation and recreational structures and equipment which are laid down by Convention No. 92 of 1949 concerning Crew Accommodation (revised) and Convention No. 133 of 1970 concerning Crew Accommodation (supplementary provisions).

3. An existing ship shall have a certificate issued by a recognised organisation confirming that the accommodation conditions existing on board the said ship for the crew comply with the requirements of the Conventions referred to in paragraph 2 of this Article.

4. The Agency shall be entitled to grant an exemption for an existing ship from the following norms:

a) from Article 11 of Convention No. 92 of 1949 concerning Crew Accommodation and from Article 6 of Convention No. 133 of 1970 concerning Crew Accommodation, if the mess room existing on board the ship is suitable for use by all seafarers on board the ship;

b) from Article 12 of Convention No. 92 of 1949 concerning Crew Accommodation and from Article 7 of Convention No. 133 of 1970 concerning Crew Accommodation, if the spaces existing on board the ship, as far as practicable, comply with the requirements of the said Articles.

5. For the purposes of this Article, a Georgian ship which is built for Georgia after the entry into force of the Maritime Labour Convention (MLC 2006) of the International Labour Organization of 23 February 2006 shall be considered a new ship. The said ship shall be deemed to have been built on the day on which its keel is laid or on which it is at a similar stage of construction.

6. A new ship shall comply with Standard A3.1 of the Maritime Labour Convention (MLC 2006) of the International Labour Organization of 23 February 2006 and Guidelines B3.1.1-3.1.12 of the same Convention.

7. For the purposes of paragraph 2 of this Article, the requirements for lighting, ventilation, drainage and heating systems shall be determined by the Agency.

Law of Georgia No. 3043 of 31 May 2023 – website, 13.06.2023.

Article 45🔗

1. For the purposes of this Chapter:

a) "shipowner" means the owner of a ship, a natural or legal person, for example, a manager, an agent or a bareboat charterer, to whom the owner of the ship has assigned responsibility for the operation of the ship, and who has, in that process, agreed to take over the duties and responsibilities incumbent on the shipowner in accordance with the Maritime Labour Convention, 2006 (MLC 2006) of the International Labour Organization of 23 February 2006, regardless of whether any other person or organization performs certain other duties on behalf of the shipowner;

b) "seafarer" means a person who works in a position on a ship engaged in international navigation beyond the limits of the sheltered waters of Georgia or the water area of a Georgian seaport.

2. Unless otherwise determined by the legislation of Georgia, this Chapter applies to a ship engaged in international navigation beyond the limits of the sheltered waters of Georgia and the water area of a Georgian seaport.

Law of Georgia of 11 December 2015 No. 4622 - website, 23.12.2015.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 46🔗

The captain and other members of the crew of a ship registered in the State Register of Ships of Georgia may be citizens of any state.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 47🔗

1. Persons with the appropriate rank who are maritime specialists shall be admitted to work in the positions of captain, officer and rating of a ship in accordance with the Law of Georgia "On the Education and Certification of Seafarers" and the 1978 International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (as amended). Persons with the appropriate rank who are maritime specialists shall be admitted to work in the positions of skipper, officer and rating on a fishing vessel in accordance with the Law of Georgia "On the Education and Certification of Fishermen-Seafarers".

2. A person shall be granted a rank after passing the appropriate examinations at the Agency, which shall be confirmed by a certificate of the appropriate competence and a certificate of qualification.

3. A person shall be deprived of a rank in the manner established by the legislation of Georgia.

4. The right to hold the position of captain of a passenger ship flying the state flag of Georgia shall be held by a person with the rank of captain who has the appropriate competence in accordance with the 1978 International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (as amended).

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011.

Law of Georgia of 11 December 2015 No. 4622 - website, 23.12.2015.

Article 48🔗

1. The order of the ship's captain within the scope of his competence shall be strictly executed by all persons on board the ship. If any person on board the ship fails to execute the captain's order, the captain shall be obliged to take appropriate measures against him.

2. The authority of the ship's captain includes (but is not limited to) the right to refuse to take the ship to sea when he does not consider the ship safe, to refuse boarding to any person, except a person authorized by the state who performs duties in accordance with the 1974 International Convention for the Safety of Life at Sea, as well as to refuse the loading of any kind of cargo.

3. If the ship's captain, on the basis of professional judgment, considers that there is a conflict between a maritime security requirement imposed on the ship and a maritime safety requirement, he shall give priority to the maritime safety requirement, take temporary measures for maritime security if necessary, and immediately notify the Agency thereof.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 49🔗

1. In accordance with the Code of Administrative Offences of Georgia, the ship's captain shall consider cases of administrative offences of the crew, apply incentive measures, impose disciplinary punishment, and impose fines administratively.

2. The ship's captain shall have the right, in case of necessity, to remove any member of the ship's crew from the performance of official duties.

Article 50🔗

The relations of the ship's captain and other members of the crew with a consular official of Georgia shall be determined by the Law of Georgia "On Consular Activities".

Law of Georgia of 12 June 2012 No. 6439 – website, 22.06.2012.

Article 51🔗

The ship's captain, by virtue of his official position, shall be considered the representative of the shipowner and the cargo owner in all transactions related to the ship, the cargo or navigation, as well as in the settlement of a disputed issue arising in connection with property entrusted to him, if the representative of the shipowner or cargo owner is not present at the place.

Article 52🔗

In the event of the birth of a child on board the ship, the ship's captain shall record this fact in the ship's logbook and shall indicate the names, dates of birth and citizenship of the child's mother and father, as well as the date and sex of the child's birth and information as to whether the child was born alive. The record made by the captain in the ship's logbook shall be signed by two witnesses. A copy of the said record, indicating the signatures of the two witnesses, shall be given to the child's parent for registration of the birth in the relevant civil body.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 53🔗

1. The master of a ship shall certify the will of a person on board the ship, keep it and hand it over to the captain of a Georgian port or to a consular official of Georgia at a foreign port.

2. In the event of the death of a person on board a ship flying the flag of Georgia, the master of the ship shall make a corresponding entry in the ship's logbook. This entry shall be certified by two witnesses, one of whom must be the ship's doctor (if he/she is on board the ship).

3. In the event of the death of a person on board a ship, the master of the ship shall prepare a copy of the entry made in the ship's logbook. This copy shall be confirmed by two witnesses.

4. The property (things) belonging to a person who died on board the ship shall be inventoried and safely kept on board the ship, so that it may be handed over at the first opportunity to the heir of the deceased at the expense of the shipowner or at the expense of the person who operates the ship.

5. A copy of the entry made in the ship's logbook shall be handed over to the nearest consular institution of Georgia, and upon return to a Georgian port — to the port captain.

6. The master of the ship shall immediately notify the agency of the fact of the death (loss) of a person on board the ship and provide it with a corresponding explanation.

7. The shipowner shall, at the first opportunity, transport the remains of the person who died on board the ship at his/her own expense.

8. If the person who died on board the ship does not fall within the definition of the term "seafarer" in accordance with the Law of Georgia on Maritime Labour, and the relatives of the deceased do not have the means to transport his/her remains, the master of the ship shall be entitled to take a decision to bury the deceased at sea, taking into account the relevant recommendations issued by the World Health Organization and the International Labour Organization.

Law of Georgia of 12 June 2012 No. 6439 – website, 22.06.2012.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 54🔗

1. If it does not pose a serious threat to the ship, the crew and the passengers, the master of the ship shall:

a) render assistance to any person in danger of perishing at sea;

b) proceed at the maximum possible speed to assist persons in distress, if the master has information that the persons in distress need assistance and such action is reasonable.

2. For failure to fulfil the obligations specified in paragraph 1 of this Article, the liability of the master of the ship shall be determined in accordance with the procedure established by the legislation of Georgia. The shipowner shall not be liable for such actions of the master of the ship.

Article 55. (removed)🔗

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 56. (removed)🔗

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 57🔗

1. If, in the captain's opinion, the ship is threatened with imminent destruction, after taking all measures to save the lives of the passengers, he permits the crew members to abandon the ship.

2. The captain is the last to leave the ship after all measures dependent on him have been taken to save the ship, the radio and engine logs, the chart of this voyage, the documents, the valuables and the cash desk.

3. In the event of the loss of the ship, the captain retains his rights and obligations with respect to the passengers, the crew and the cargo, regardless of where the crew has taken refuge.

4. In the event of the death or illness of the ship's captain, the ship and the crew are commanded by the captain's senior mate.

Article 58🔗

In the event of a military threat, military action, as well as a pirate attack, the ship's captain shall, taking into account the circumstances, in such a way that no harm is caused to the persons on board the ship, take all measures permitted by international law in order to prevent the seizure by the attackers of the persons on board the ship, the existing documents, the cargo and other property.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 59. (repealed)🔗

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 60🔗

1. (repealed).

2. During navigation, while the ship is in a port of a foreign country, in the event of the commission of a crime provided for by the criminal legislation of that country, the ship's captain shall take the necessary measures provided for by the criminal procedure legislation of Georgia, being guided by the navigation contracts concluded between Georgia and the said country and by the conflict-of-law rules of international law.

3. The ship's captain is entitled to detain a person on board the ship accused of committing a criminal offence and to hand him over to the relevant authority at the first port of Georgia. In case of necessity, the ship's captain has the right to send the said person and the investigation materials to Georgia by another ship registered in Georgia. In cases provided for by an international treaty of Georgia, the ship's captain has the right to hand over the said person to the competent authority of another state.

4. While the ship is in a port of Georgia, the ship's captain shall hand over a person accused of committing a crime provided for by the criminal legislation to the local authorities.

Law of Georgia of 20 April 20005 No. 1361-LHG I, No. 19, 28.04.2005, Art. 133

Law of Georgia of 25 July 2006 No. 3541-LHG I, No. 36, 04.08.2006, Art. 267

Law of Georgia of 24 September 2010 No. 3619-LHG I, No. 51, 29.09.2010, Art. 332

Article 61🔗

1. When the master of a ship acts with due regard for the interests of safety at sea and protection of the marine environment and takes any decision in this field on the basis of his own professional experience, the shipowner, the charterer of the ship or any other person shall not be entitled to restrict his actions.

2. The shipowner, the charterer of the ship or any other person shall not be entitled to dismiss without grounds or take any other unjust decision in respect of the master of the ship who, in accordance with his professional experience, duly performs his official duties.

3. In the cases referred to in paragraphs 1 and 2 of this Article, the master of the ship has the right to appeal.

Article 62🔗

The procedures for the employment of seafarers, their rights and duties, as well as the provisions on the social protection of seafarers shall be determined by the labour legislation of Georgia, the Law of Georgia "On Seafarers' Labour", the Maritime Disciplinary Charter and the seafarer's employment contract.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023

Article 63🔗

In accordance with the international treaties of Georgia and other legislative and subordinate normative acts of Georgia, the crew of a ship shall be obliged to perform faithfully the duties assigned to it, to carry out the orders and requirements of the master of the ship for the purposes of navigational safety, protection of the marine environment, carriage of cargo without loss and maintenance of the proper technical condition of the ship, and to be guided by the legal acts of the Agency and the rules of the company.

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023

Article 64🔗

1. A ship flying the flag of Georgia to which this Chapter applies shall be obliged to have on board:

a) a valid certificate issued in accordance with the Maritime Labour Convention (MLC 2006) of the International Labour Organization of 23 February 2006;

b) a copy of the most recent edition of the Code of Practice of the International Labour Organization (ILO); the Code on the prevention of accidents on board ships at sea and in port (ILO Code of Practice), as well as additional guidance on seafarers' occupational safety and health protection that may be adopted or issued by the Agency.

2. Work on a ship flying the flag of Georgia shall be performed taking into account the provisions of the Code on the prevention of accidents on board ships at sea and in port (ILO Code of Practice).

3. A company, shipowner or person responsible for the operation of a Georgian ship shall be obliged to introduce on the said ship appropriate occupational safety standards, a health management policy and programme in accordance with the requirements of the Code on the prevention of accidents on board ships at sea and in port (ILO Code of Practice). This obligation shall include:

a) reasonable measures for the prevention of occupational accidents, injuries and diseases on board, measures to reduce and prevent the harmful effects of environmental factors and chemicals, measures to reduce the risk of occupational injury or occupational disease that may arise from the use of the ship's equipment;

b) training of seafarers, instructions for the prevention of occupational accidents, for the prevention of occupational injury and occupational disease, measures for the continuous improvement of occupational safety and health, in which seafarers' representatives and all other persons interested in their implementation participate;

c) appropriate procedures for inspection, reporting and remedying of defects, which shall also include procedures for the investigation and reporting of facts of occupational accidents and occupational diseases occurring on board;

d) rules for paying special attention to the health of seafarers under 18 years of age;

e) specific obligations of the ship's master or of a person designated by him for the implementation of the occupational safety policy and programme;

f) procedures for the participation of a designated or elected representative of the ship's crew members in the activities of the ship's safety committee;

g) procedures for risk assessment in terms of occupational safety and health protection, which include statistical information on the relevant ship, as well as information issued by the Agency.

4. A company, shipowner or person responsible for the operation of a ship flying the flag of Georgia shall be obliged to ensure the establishment of a ship's safety committee consisting of not fewer than 5 members of the ship's crew. The said committee shall carry out its activities taking into account the provisions of the Code on the prevention of accidents on board ships at sea and in port (ILO Code of Practice).

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 65. (removed)🔗

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 66🔗

1. Food products supplied on a ship flying the flag of Georgia shall correspond to the number of seafarers on board the ship and to their religious and cultural customs, shall take into account the duration of the ship's voyage, and shall be of adequate quantity. At the same time, their nutritional value, quality and variety shall be ensured.

2. The compliance, quality and quantity of drinking water and food on board the ship shall be determined by the Agency.

3. The ship's galley shall be organised, and its equipment arranged, in such a way that adequate, varied and highly nutritious food is prepared for seafarers in hygienic conditions.

4. It is mandatory to select an appropriately qualified cook for a ship flying the flag of Georgia. At the same time, if the total number of seafarers indicated in the document on manning the ship with a safe number of crew members is fewer than ten, the ship may not have a qualified cook. In the said case, the shipowner shall ensure that the person on board the ship who is responsible for preparing food is properly trained in the matters of handling, storing and preparing food products in accordance with paragraph 7 of this Article.

5. A qualified cook is a person who is considered as such in accordance with the Law of Georgia "On Seafarers' Labour".

6. A seafarer who works in the field of maritime culinary on a ship flying the flag of Georgia shall have undergone appropriate training and instruction in accordance with his/her position.

7. For the purposes of this Article, a person who has undergone appropriate training and instruction shall be considered to be a person who has completed one of the following courses:

a) a training course recognised by the Agency;

b) a training course organised by the shipowner, which covers at least the methods of personal safety protection in the galley, and the matters of food hygiene and personal hygiene.

8. The master of a ship flying the flag of Georgia or a person designated by him/her shall be obliged to monitor (inspect) drinking water, food, the food products store, the galley and other relevant equipment at least once a week.

9. In addition to the monitoring (inspection) referred to in paragraph 8 of this Article, the master of a ship flying the flag of Georgia or a person designated by him/her shall be obliged to inspect the living quarters on board the ship monthly in order to ensure that the living rooms are hygienic and provide decent accommodation.

10. The monitoring (inspection) required by paragraphs 8 and 9 of this Article and any non-compliance detected during its conduct, together with other non-compliances detected on board the ship, shall be recorded in the appropriate document, and the measures taken to eliminate it shall be indicated.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 67🔗

The owner of a ship flying the flag of Georgia or the person responsible for its operation shall ensure that:

a) the ship fully complies with the minimum standards of health and safety protection on ships flying the State flag of Georgia, which are approved by the Director of the Agency. At the same time, the said standards are checked at least once a year by the relevant competent person;

b) the latest version of the International Medical Guide for Ships is placed on board the ship, and if the ship carries dangerous cargo − also the guide for the provision of first aid in cases related to dangerous cargoes;

c) a qualified doctor is on board when the ship is engaged in international navigation for more than 3 days and carries 100 or more persons.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 68. (repealed)🔗

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011.

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 69. (repealed)🔗

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 69¹. (repealed)🔗

Law of Georgia of 22 June 2012 No. 6546 – website, 04.07.2012.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 69². (repealed)🔗

Law of Georgia of 22 June 2012 No. 6546 – website, 04.07.2012.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 69³. (repealed)🔗

Law of Georgia of 22 June 2012 No. 6546 – website, 04.07.2012.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 70🔗

1. A seaport is a complex of port infrastructure located at a specific geographical location and in which one or more port units may be located.

2. The territory of a port unit comprises the land area allocated to it, while the water area comprises the sea space allocated to it.

3. A port unit shall ensure the readiness of the port unit's territory and water area for safe navigation.

4. The Agency shall ensure vessel traffic services in the territorial sea of Georgia and in all seaports, through its structural unit, in accordance with the requirements of Chapter V of the 1974 International Convention for the Safety of Life at Sea, its 1988 Protocol, and taking into account amendments.

4¹. The rules for the functioning and control of the vessel traffic system in the territorial sea of Georgia and in all seaports shall be determined by a normative act of the Director of the Agency.

5. Within the territory and water area of a port unit, the loading and unloading of incoming vessels, servicing, fuel supply, technical servicing and repair, transport-forwarding, storage, accumulation, packaging and warehousing operations of cargo, its transshipment from one mode of transport to another, passenger service operations, and operations for the carriage of cargo, luggage and mail, and others shall be carried out.

5¹. To receive port services, a maritime single window system shall operate in the ports of Georgia, through which the applicant fulfils the reporting obligation. The applicant shall enter the relevant information into the maritime single window system only once, upon the vessel's entry into the port, as well as upon the vessel's departure from the port. The functioning of the maritime single window system shall be ensured by the Agency, which is responsible for coordinating and administering the provision of services through the maritime single window system in ports. All other competent authorities shall participate in the functioning of the maritime single window system and shall coordinate their activities with the Agency. The body responsible for the development of the maritime single window system and for the adoption and implementation of strategic decisions shall be the Maritime Single Window Steering Committee.

5². The Government of Georgia shall approve by Resolution the "Rules for the Functioning and Management of the Maritime Single Window System in the Ports of Georgia".

6. The list of those seaports of Georgia that are open to vessels of foreign countries shall be determined by the Government of Georgia and shall be published in "Notices to Mariners". The publication of this list shall be ensured by the Agency.

7. The issue of the establishment and functioning of military ports shall be regulated by the relevant legislation.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 24 September 2013 No. 1286 – website, 08.10.2013

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia No. 1547 of 10 May 2022 – website, 24.05.2022.

Law of Georgia No. 4165 of 15 May 2024 – website, 29.05.2024.

Article 71🔗

1. The port unit shall, in accordance with the procedure established by the legislation of Georgia, allocate to natural and legal persons, for the purposes of their activities, individual sections of the territory, water area or berth of the port unit, installations and equipment.

2. The port unit shall provide, free of charge, the Coast Guard Department and the State Customs, Border-Migration and Sanitary Services, as well as the relevant services of the Agency, with appropriate space and shall create conditions for their normal operation.

3. The port unit shall not be entitled to hinder the activities of an enterprise and organisation located in the territory of the respective port, or to interfere in their economic work, except in cases provided for by the legislation of Georgia.

4. An enterprise and organisation located in the territory of the port unit shall be obliged to comply with the port rules.

Law of Georgia No. 4598-LHG I of 30 March 2007, No. 11, 10.04.2007, Art. 102

Law of Georgia No. 69-LHG I of 27 June 2008, No. 12, 14.07.2008, Art. 91

Law of Georgia No. 3806-LHG I of 12 November 2010, No. 66, 03.12.2010, Art. 414

Law of Georgia No. 4222 of 22 February 2011 – website, 10.03.2011.

Law of Georgia No. 4923 of 28 June 2019 – website, 04.07.2019.

Law of Georgia No. 1547 of 10 May 2022 – website, 24.05.2022.

Article 72🔗

1. (deleted).

2. The berths, hydrotechnical structures, lighthouses, light signals and water area of ports of particular importance shall be the property of the State.

3. The allocation and withdrawal of land and water area shall be carried out in accordance with the legislation in force.

Law of Georgia No. 5301-LHG I of 11 July 2007, No. 31.03.08.2007, Art. 353

Law of Georgia No. 69-LHG I of 27 June 2008, No. 12, 14.07.2008, Art. 91

Article 73. (deleted)🔗

Law of Georgia No. 69-LHG I of 27 June 2008, No. 12, 14.07.2008, Art. 91

Article 74. (deleted)🔗

Law of Georgia No. 69-LHG I of 27 June 2008, No. 12, 14.07.2008, Art. 91

Article 74¹🔗

1. Port units operating in a Georgian port shall have equal rights and access to the common access channel and/or the common part of the access channel.

2. A port unit shall not have the right to establish a fee for the use of the access channel or another port fee and/or charge for vessels entering another port unit and leaving another port unit.

3. Responsibility for maintaining the design depths in the common access channel and/or the common part of the access channel shall rest with the port units.

4. The cost of carrying out dredging works of the common access channel and/or the common part of the access channel shall be distributed among the port units in proportion to the aggregate displacement indicator of vessels entering each port unit during the reporting period determined by the contract provided for by paragraph 5 of this Article. When distributing the said cost, vessels of military, state and other non-commercial purpose, vessels intended for non-cargo operations, including the port fleet and vessels intended for dredging works, shall not be taken into account.

5. Port units shall carry out the dredging and maintenance of the common access channel and/or the common part of the access channel on the basis of a contract concluded between them. The said contract shall be concluded taking into account the conditions determined by this Code and the normative act of the Government of Georgia indicated in paragraph 8 of this Article.

6. The Agency shall be entitled to carry out dredging works of the port access channel and to ensure the maintenance of the depths of the said channel in the case determined by the normative act of the Government of Georgia indicated in paragraph 8 of this Article. In such case, the fee for the use of the port access channel shall be determined by the relevant normative act of the Minister of Economy and Sustainable Development of Georgia. In the said case, the Agency shall not be responsible for the expenses on the infrastructure in the ownership and/or possession of the port units.

7. The Agency shall exercise the authority provided for by paragraph 6 of this Article independently or through a third person. At the same time, the Agency shall not have the right to transfer the said authority to a port unit or a person, if the port unit and that person are interdependent persons.

8. The Government of Georgia shall approve by a normative act the rules for the use of the port access channel.

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022.

Article 75🔗

1. (Removed).

2. Loading and unloading of vessels is carried out in the order of their arrival. An exception may be permitted for vessels operating on regular lines, vessels in distress or vessels in emergency.

3. (Removed).

4. (Removed).

5. An organisation which has its own territory is entitled to create the relevant technical means and to carry out maritime-cargo operations in accordance with the established procedure.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 76🔗

1. For the purpose of ensuring navigation safety and compliance with the established norms and rules of service in a port unit, the port unit shall be responsible for:

a) compliance with the conditions for the safe standing of vessels at berths;

b) the good order of hydrotechnical structures;

c) the good order of the communications and electrical radio navigation means in the possession of the port unit;

d) the good order of the navigational signs owned by the port unit;

e) the maintenance of the design depths;

f) compliance with the port rules;

g) the fulfilment of the requirements of cleanliness and environmental protection in the territory and water area of the port unit;

h) the reception of oil-containing masses from vessels;

i) the reception and utilisation of faecal masses, waste and other substances harmful to human health and the environment from vessels;

j) the provision of the relevant first aid to persons in distress as a result of a catastrophe;

k) the fulfilment, within the scope of its competence, of the instructions of the Agency and the Maritime Rescue and Coordination Centre during the conduct of search and rescue operations at sea, as well as during the liquidation of accidental spills of oil and harmful substances.

2. The port unit shall carry out the activities provided for by paragraph 1 of this Article in accordance with this Code, other legislative and subordinate normative acts of Georgia and the technical regulations approved by the Agency.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 77🔗

1. The port unit shall function in accordance with the port rules. The port rules shall be approved by the Agency. The port unit, within the scope of its competence, shall participate in the elaboration of the port rules.

2. In the port unit, the port operator shall be responsible for the cargo from the moment of its receipt until its delivery to the consignee, another authorized person or the carrier.

3. The operator shall be responsible for the damage caused by loss, delay or damage of the cargo.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 78🔗

1. In the port unit, ship agency service, stevedoring service, surveyor service and transport-forwarding service shall be provided in accordance with international standards and the legislation of Georgia. Companies providing the said services shall be obliged, before commencing the respective activity, to submit registration data and contact information to the Agency.

2. The agency company shall be obliged, in the name and on the instruction of the shipowner or the charterer, to effect settlement for all types of services rendered and to submit to the shipowner or the charterer a consolidated disbursement account.

3. The agency company shall be obliged, in accordance with the legislation of Georgia, to ensure the provision of data about the ship to the maritime single window system. The agency company shall be responsible for the accuracy of these data, as well as for updating the said information in the event of its change.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Law of Georgia of 15 May 2024 No. 4165 – website, 29.05.2024

Article 78¹🔗

For the purposes of this Chapter, the terms used herein have the following meaning:

a) competent authority − a public authority responsible for the collection of the relevant information and participating in the provision of services through the maritime single window system;

b) declarant − any natural person, legal person or agency company which, in accordance with the legislation of Georgia, carries out the relevant reporting and is responsible for the provision of the relevant information to the maritime single window system, as well as for its accuracy and updating;

c) maritime single window − a technical platform operating at national level which enables the electronic receipt, processing and transmission of navigational, administrative and operational information, including the management of the right(s) granted within the scope of the access level, harmonised notification and user graphical interfaces ensuring communication with the declarant and the performance by the declarant of the reporting obligation. This technical platform also ensures connection with the systems of competent authorities and access to the relevant databases at national and international levels, which makes it possible, in accordance with the legislation of Georgia, to receive notifications on the decisions taken by competent authorities in relation to the declarant. Where necessary, it is also possible to establish connection with other means of receiving notifications through these systems;

d) port service − a service offered in the ports of Georgia, including fuel supply, cargo handling, mooring of the vessel, provision of passenger services, delivery of waste, pilotage, towing;

e) reporting obligation − the obligation to provide information established for the port of destination in accordance with the legislation of Georgia and international legal instruments;

f) Maritime Single Window Steering Committee − a body established by the Government of Georgia from representatives of competent authorities and chaired by the Agency;

g) agency company − a person equipped with the relevant authority by the shipowner and who, on behalf of the shipowner, in agreement with the port, in accordance with the request of the master of the vessel, organises the provision of port services and the process related to the entry of the vessel into and exit from the port (including the provision of the relevant information to the appropriate authorities and the maritime single window system), as well as activities related to the delivery and receipt of cargo.

Law of Georgia of 15 May 2024 No. 4165 – website, 29.05.2024.

Article 79. (removed)🔗

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 79¹. (repealed)🔗

Law of Georgia of 23 December 2008 No. 833-LHG I, No. 40, 29.12.2008, Art. 272

Law of Georgia of 3 November 2009 No. 1923-LHG I, No. 35, 19.11.2009, Art. 233

Law of Georgia of 26 October 2010 No. 3750-LHG I, No. 62, 05.11.2010, Art. 390

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 2 May 2014 No. 2397 – website, 16.05.2014

Article 80🔗

1. The port unit shall be responsible for the implementation of safe navigation in the water area of the seaport.

2. For the purpose of implementing safe navigation in the water area of the seaport and maintaining order in the port unit, the port unit shall:

a) ensure, in accordance with Article 87 of this Code, the creation of appropriate conditions for the safe performance of pilotage operations by the pilotage service;

b) ensure the implementation of appropriate measures in accordance with the plan for carrying out works to recover sunken property in the area of responsibility of the port unit, approved by the Agency;

c) ensure the mobilisation of all resources in the port unit for the purpose of implementing the measures approved by the Agency in order to carry out search and rescue operations to save persons and vessels in danger in the area of responsibility of the port unit, as well as to carry out works for the elimination of accidental spills of oil and harmful substances;

d) ensure the storage of dangerous cargo and the performance of cargo operations in the port unit in accordance with the established procedure.

3. When performing the functions provided for by paragraph 2 of this Article, the port unit shall comply with international treaties of Georgia, this Code, other legislative and subordinate normative acts of Georgia, established technical regulations, port rules and the written requirements of the Agency prescribed for the relevant cases.

Law of Georgia of 13 July 2000 No. 490-LHG I, No. 28, 24.07.2000, Art. 87

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 81. (repealed)🔗

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 82🔗

1. All ships (regardless of the flag State and the form of ownership) shall, before leaving the port, obtain written consent for departure from the Maritime Port State Supervision and Control Service.

2. The captain of the port shall have the right to detain a ship or cargo in a maritime port if:

a) the ship is unfit for navigation;

b) the port structures, other property located in the port and navigational equipment are out of order;

c) the requirements for loading, supply and manning of the crew are violated, and there are other deficiencies related to the ship which pose a threat to the safe navigation of the ship, to the health of persons on board the ship and to the environment;

d) the ship's documents have been drawn up incorrectly;

e) there is an application of a natural or legal person concerning general average, salvage, a contract of carriage of cargo, collision of ships, non-payment of tax or other damage;

f) the owner of the ship or cargo does not provide adequate security (in the event of non-payment of a fine, a due amount or non-compensation of damage).

3. An order of the captain of a maritime port on the detention of a ship or cargo shall be effective for 3 days and nights. This period shall not include the days of rest and public holidays established by the legislation of Georgia. If within this period the court does not issue a judgment on the detention of the ship or cargo, it shall be released immediately.

4. Detention of a ship owned by another State which is used for non-commercial purposes shall be inadmissible, except in cases provided for by the international treaties of Georgia and the legislation of Georgia.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Article 83🔗

1. The captain of a ship standing in a port unit (except for a ship owned by another State which is used for non-commercial purposes) and persons located in the territory of the port unit shall, in accordance with the assignment of the Agency, upon the demand of the port unit, hand over to it the floating objects or other technical means belonging to them for the rescue of persons and the ship in danger, as well as for the elimination of sea pollution.

2. Compliance with the requirements established by the Agency and the port unit, within the scope of their competence, for ensuring the safety of navigation and for maintaining order in the respective port unit shall be mandatory for all natural and legal persons and the captain of a ship located in the port unit.

3. For violation of the requirements for the safety of navigation and the maintenance of order in the port, an administrative penalty shall be applied in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 83¹🔗

1. Arrest of a ship shall be effected only for the purpose of securing a maritime claim.

2. A maritime claim arises from the ownership of a ship and other property relations arising in the course of the construction, management, operation, commercial use, mortgage of a ship, or the implementation of measures related to salvage.

3. Arrest and release of a ship shall be effected only by a court in accordance with the civil procedural legislation of Georgia.

4. Arrest of a ship in the state ownership of Georgia and the imposition of a penalty on it may be effected only with the consent of the Government of Georgia.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 84. (removed)🔗

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 85. (removed)🔗

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 86🔗

1. The rules and conditions for the entry, exit and standing of a ship in a maritime port, cargo operations, including the storage of dangerous cargo, and the performance of cargo operations, the fuelling of a ship, pilotage escort, and other issues shall be determined by the "Port Rules", which shall be approved by the Agency.

2. The Agency, together with the authorized representative of a military port, shipbuilding and other enterprises whose water area is adjacent to the water area of a maritime port, shall establish the rules of movement in ports and at their approaches.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011.

Article 86¹🔗

1. State supervision and control over the safety of navigation in the water area of a maritime port shall be exercised by the Agency through its structural unit – the Port State Supervision and Control Service, which shall be headed by the port captain appointed by the Director of the Agency.

2. A citizen of Georgia who has an education in the specialty of navigation and the rank of captain of a ship of more than 3000 gross tonnage may be appointed as port captain.

3. In order to ensure state supervision and control of the safety of navigation, the main functions of the Agency shall be:

a) exercise of state supervision and control over the safety of navigation;

b) clearance of a ship (including a fishing vessel) (irrespective of the flag State and the form of ownership) for entry into/exit from a maritime port in accordance with the port rules approved by it;

c) within the scope of its authority, control over compliance by ships entering a port of Georgia (irrespective of the flag State and the form of ownership) with the requirements established by the international treaties of Georgia and the legislation of Georgia;

d) granting consent to the carrying out of works to recover property sunk in the sea in the water area of the respective port;

e) management of search and rescue operations, as well as of works to clean up accidental spills of oil and harmful substances, for the rescue of persons and ships in danger in the water area of the port, and coordination of the use of all resources in the maritime port;

f) control over compliance with the respective technical regulations in the field of safety of navigation.

4. In the performance of its functions, the Agency shall have the right, in accordance with the legislation of Georgia, to:

a) detain a ship and/or cargo;

b) inspect the documents of a ship entering a maritime port, the certificates of seafarers, as well as the certificates of crew members;

c) give instructions to a port unit on matters related to ensuring the safety of navigation;

d) adopt other relevant decisions on matters assigned to its competence by this Code, the Law of Georgia "On Management and Regulation in the Transport Sector" and normative acts subordinate to legislation arising therefrom.

5. If a ship flying the flag of a foreign country, upon entering a port of Georgia, fails to present the documents provided for by this Code and an international treaty of Georgia, its cargo capacity, passenger capacity, determination of the minimum freeboard height and the radio station shall, at the expense of the shipowner, by way of technical supervision, be subject to mandatory inspection in accordance with the rules established for the inspection of ships flying the State flag of Georgia.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 87🔗

1. To ensure the safety of navigation, pilotage of a ship at the approaches to a Georgian port and in its water area shall be carried out only by a maritime pilot certified by the Agency (hereinafter – pilot).

2. A port unit shall, for the safety of navigation, ensure the functioning of the pilotage service on the territory and in the water area of the port unit.

3. Proceeding from the interests of maritime safety, it shall be inadmissible for a pilotage service to be established by a port unit/an employee of a port unit or to be a legal entity affiliated with it.

4. A pilotage service may be established in a legal form provided for by the Law of Georgia on Entrepreneurs. A port unit of Georgia shall conclude an appropriate contract on pilotage services with the relevant pilotage service. This contract shall contain provisions on the provision of pilotage services in the port and on the approaches to the port, as well as on the berthing of pilot boats.

5. The activity of a pilotage service shall be regulated by the technical regulation approved by the Government of Georgia (hereinafter – the Technical Regulation), the purpose of which is to ensure the safety of navigation at the approaches to the maritime ports of Georgia and in their water areas and the legal regulation of activities related to the provision of pilotage services by pilotage services. The Technical Regulation shall be based on Resolution A.960 (23) of the International Maritime Organization – IMO – of 5 December 2003, "Recommendations on Training, Certification and Operational Procedures for Maritime Pilots Other Than Deep-Sea Pilots" (hereinafter – the Resolution), the International Convention on the Training, Certification and Watchkeeping of Seafarers, 1978 (hereinafter – the Convention), this Code and other legal acts.

6. The Agency shall exercise permanent supervision and control over the activities related to the provision of pilotage services by the holder of a pilotage service certificate or a pilot's certificate. The purpose of this supervision and control shall be to ensure compliance of pilotage services with the requirements established by the legislation of Georgia, the Resolution and the Convention, as well as with the best maritime practice. In matters of maritime safety, a certified pilotage service and a certified pilot shall be subordinate to the Head of the Port State Control Service – the Port Captain.

7. Certification of a pilotage service shall be carried out for a period of 5 years. The rules and conditions for certification of a pilotage service shall be determined by the Technical Regulation.

8. If, through the fault of the pilotage service and/or the port unit, including due to the absence of a contract or in another case provided for by the legislation of Georgia, it is impossible to provide pilotage services in a compulsory pilotage area, the Agency has the right to appoint a relevant competent person and/or a pilot certified by the Agency in order to ensure the provision of compulsory pilotage services. The Agency shall determine the procedure for remuneration of the said pilot.

9. A pilot certified by the Agency shall, for the protection of state interests and to ensure maritime safety in the ports of Georgia, be obliged, on the basis of appropriate remuneration, to comply with an instruction of the Agency in order to ensure pilotage in a compulsory pilotage area. Unjustified refusal to comply with a mandatory instruction of the Agency shall be grounds for termination of the validity of the pilot's certificate. The Director of the Agency shall determine the procedure for pilot remuneration.

10. A pilotage service shall have in ownership/possession a floating craft that is under the technical supervision of a classification society recognized by the Agency and to which the Agency has granted the status of a pilot boat. A pilot boat shall meet the requirements established by the technical regulation. The Agency shall grant the status of a pilot boat to a floating craft by making the relevant entry in the ship registration certificate. The ship registration certificate shall also indicate the name of the port in which the said boat is certified to navigate. The Agency shall not carry out separate certification of pilot boats. If a floating craft has not been built as a pilot boat, the classification society shall additionally check its compliance with the technical criteria necessary for this type of floating craft. To carry out this action, the classification society must have a standard for the technical inspection of pilot boats. This standard shall be approved by the Agency.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 88🔗

A citizen of Georgia who holds a pilot's certificate issued by the Agency in accordance with the established procedure, taking into account the requirements of international maritime organizations, shall be appointed as a pilot.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Article 89🔗

1. (Removed).

2. In areas of compulsory pilotage, navigation without a pilot is prohibited.

3. The master of a vessel has the right, where necessary, to take a pilot on board when navigating in areas of non-compulsory pilotage. In this case the master of the vessel reserves the right to refuse pilotage services when he/she considers it expedient.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 90🔗

1. When piloting a vessel, the pilot shall monitor changes in the fairway, as well as the condition of coastal navigational signs, and shall immediately notify the harbour master of any maritime incident connected with the vessel being piloted and of any change in the fairway.

2. When piloting a vessel, the pilot shall point out to the master of the vessel the facts of violations of navigation rules, compulsory resolutions and other rules, demand the elimination of such violations and, if the master of the vessel disregards such demands, immediately notify the harbour master and, where necessary, stop the movement of the vessel.

Article 91🔗

The Agency has the right to restrict the departure of a vessel in bad weather (in poor visibility, a storm, an earthquake and in other cases), as well as during other special conditions unfavourable for safe navigation.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Article 92🔗

1. Liability for an accident at sea occurring through the fault of a vessel shall be borne by the master of the vessel, and if this occurred in the performance of official duties through the fault of the pilot – also by the pilotage service.

2. Compensation for damage caused by a pilot shall be effected by compulsory civil liability insurance.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 93🔗

1. When a pilot is summoned on board a vessel, the pilotage service shall immediately send him/her to the vessel, of which it shall notify the master of the vessel. If for any reason the immediate sending of the pilot to the vessel is impossible, the pilotage service shall inform the master of the vessel thereof and notify him/her of the time of the pilot's arrival on board the vessel.

2. While performing official duties on board a vessel, a pilot may be accompanied by a person undergoing the training necessary for mastering the profession of pilot (trainee).

Article 94🔗

The master of a vessel shall ensure the immediate and safe reception of the pilot and the pilot trainee, as well as, throughout the entire period of piloting the vessel, provide them free of charge with a separate rest cabin and meals in the same manner as for the officers.

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Article 95🔗

1. When boarding the ship, the pilot is obliged to present to the ship's captain the pilot's certificate and the pilotage receipt.

2. The ship's captain has no right to take on board a pilot who does not present to him the pilot's certificate and the pilotage receipt.

3. The ship's captain notes in the receipt the place and time of the beginning and end of pilotage, the exact data of the cargo and the ship; if necessary, he enters remarks concerning the circumstances accompanying the pilotage, which he confirms with his signature.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 96🔗

The pilot has no right, without the captain's consent, to leave the ship before anchoring, before being moored by cable at a safe berth, before being taken out to sea, or before the arrival of a replacement pilot.

Article 97🔗

The presence of a pilot on board does not release the captain from responsibility for the navigation of the ship. In a special case, when leaving the ship's bridge, he is obliged to leave with the pilot a person responsible for the navigation of the ship during the captain's absence.

Article 98🔗

1. If the ship's captain does not take into account the pilot's recommendations, the latter has the right, in the presence of a third person, to refuse further pilotage of the ship and to demand that this be recorded in the pilotage receipt; moreover, notwithstanding the pilot's refusal of pilotage of the ship, he is obliged to remain on the ship's bridge and to provide the captain with the data necessary for the safe navigation of the ship. If the captain demands the resumption of pilotage, the pilot is obliged to continue the pilotage.

2. If the captain doubts the correctness of the pilot's recommendations, he has the right to refuse his services. In such a case, in the area of compulsory pilotage, the captain stops the movement of the ship as far as possible until a new pilot is taken on board.

Article 99. (removed)🔗

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Article 100🔗

A captain who, after calling a pilot on board and the latter's arrival, refuses pilotage services, is obliged to pay in full the price of the pilotage services.

Article 101🔗

1. For entering false data in the pilotage receipt, the captain pays a fine in the amount of double the fee for pilotage services. He also bears the liability provided by law for the consequences caused by this data.

2. The following shall be noted in the pilotage receipt:

a) the name of the ship;

b) the flag of the ship's state;

c) the name of the shipowner, his address;

d) gross register tonnage and net register tonnage;

e) deadweight (carrying capacity);

f) the ship's overall length, breadth and height of side;

g) the ship's draught;

h) the name and quantity of the cargo;

i) the work performed.

Article 102🔗

The ship's captain is obliged to pay a special remuneration in the amount of double the pilotage rate in the case where the pilot, before the start of pilotage, is forced to stay on the ship for more than two hours due to the ship and the agent and not as a result of force majeure.

Article 103🔗

If, in the performance of their official duties, a pilot (a pilot and a trainee) go by ship beyond the limits of their service area, the master shall be obliged to reimburse the pilot and the trainee for the return expenses (travel, per diem expenses, hotel costs) and the fee for pilotage services for every day(night.

Article 104. (repealed)🔗

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Article 105🔗

1. For the purposes of this Chapter, property sunk in the sea shall be considered a ship sunk in the territorial sea or internal waters of Georgia, as well as a ship cast up on shallow waters, rocks and other places, its wreckage, equipment, cargo and others.

2. The recovery, removal or destruction of property sunk in the sea shall be carried out in accordance with this Code and other legislative and subordinate normative acts of Georgia.

3. Property that accidentally sank in the water area of a port of Georgia during the performance of cargo operations and repair works on the port infrastructure shall not be considered property sunk in the sea.

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Article 106🔗

1. In the event of the sinking of property in the sea, the owner and/or proprietor of the property sunk in the sea shall be obliged to immediately notify the head of the State Supervision and Control Service of the nearest maritime port of Georgia — the port captain — thereof.

2. Upon the request of the shipowner, the Agency, in agreement with the relevant state bodies, shall establish the time limit for the recovery of the property sunk in the sea and shall agree the plan for carrying out works for its protection and recovery. The Agency shall notify the owner and/or proprietor of the property about the said time limit and plan.

3. If the property is sunk in the water area of a maritime port, in the case of carrying out works for its recovery, the plan provided for by paragraph 2 of this Article shall also be agreed with the relevant port unit. The port unit shall facilitate the implementation of the said plan at the expense of the owner and/or proprietor of the sunk property.

4. If the property sunk in the sea endangers human life and/or health, hinders safe navigation, maritime fishing, the carrying out of hydrotechnical, scientific-research, environmental, maritime-rescue and/or other similar works, and/or may cause pollution of the environment, the owner and/or proprietor of the property shall be obliged to immediately notify the head of the State Supervision and Control Service of the nearest maritime port of Georgia — the port captain — thereof and, in accordance with his request, to recover the property sunk in the sea at his own expense. The time limit for the recovery of the property shall be agreed with the port captain.

5. When the property sunk in the water area of a maritime port is recovered by the relevant port unit, if the circumstance provided for by paragraph 4 of this Article exists, and also if this property impedes commercial activity in the port water area or may impede such activity, regardless of whether the said property is in state ownership or not, the port unit shall be obliged, in agreement with the Agency, to recover the property at its own expense. At the same time, the port unit shall have the right to reimburse the expenses incurred through the sale of the recovered property.

6. When carrying out cargo operations and repair works of port infrastructure in a port unit of Georgia, the recovery and sale of property accidentally sunk in the sea shall be carried out directly by the port unit at its own expense.

7. If, when the port unit recovers property in state ownership sunk in the sea, the sale price of this property fully covers the costs of its recovery and an amount remains as a result of the sale, the port unit shall be obliged to transfer this amount to the State Budget of Georgia. In the case of the sale of property provided for by this Article, the port unit shall be obliged to submit to the Agency information and the relevant documentation on the sale of the said property.

8. The State of Georgia, as the owner of property sunk in the sea, does not incur an obligation to any person to reimburse the costs of recovery of the property sunk in the sea in connection with its recovery/sale. This rule shall not apply to the case where the State of Georgia is itself the initiator of the recovery of the property sunk in the sea.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 107🔗

1. If the holder and/or owner of property sunk in the sea is unknown, the Agency shall, in order to find its holder and/or owner, publicly publish information indicating a reasonable time limit for the recovery of the property sunk in the sea.

2. For the purposes of paragraph 1 of this Article, if the property sunk in the sea is a ship, in the absence of information on its holder and/or owner, the Agency, in order to find the holder and/or owner of the property sunk in the sea, shall send to the Ministry of Foreign Affairs of Georgia a notification to be transmitted to the State of the flag of the said ship, indicating a reasonable time limit for the recovery of the property, or, taking into account the circumstances, shall contact directly the competent authority of the respective State in order to transmit such notification.

3. If the recovery of the property sunk in the sea was not carried out within the time limit determined by paragraphs 1 and 2 of this Article, the Agency shall be entitled to ensure the recovery of the property or, in accordance with the procedure established by this Chapter, notwithstanding the time limit provided for by Article 108 of this Code, to carry out its sale, and, if necessary, to take measures for the destruction of the property.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Article 108🔗

1. The holder and/or owner of property sunk in the sea shall be entitled to recover the sunk property within 2 years of its sinking or to claim the recovered property within 2 years of its sinking. At the same time, he/she shall be obliged to compensate the Agency or the port unit for the damage caused by the sinking of the said property in the sea and for the costs of its recovery.

2. After the expiry of the time limit provided for by paragraph 1 of this Article, the relevant property shall become State property.

3. If the port unit or the Agency sold the recovered property because its storage was not possible and/or expedient, the holder and/or owner of the property sunk in the sea shall be returned the amount received from the sale of this property, less the costs incurred by the port unit or the Agency and less the amount of damage caused to the port unit or the Agency during the recovery, storage and sale of the said property.

4. Renunciation of the property sunk in the sea or of the recovered property shall not release the holder and/or owner of the property from the obligation to compensate the State and/or the port unit for the costs incurred and the damage caused.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 109🔗

If property sunk in the port water area endangers human life and/or health, hinders safe navigation and/or may cause environmental pollution, and/or the sunk property is not recovered by its holder and/or owner within the established time limit, the port unit shall, upon the instruction of the Agency, immediately recover this property and, where necessary, take measures to destroy it or otherwise remove it.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 110🔗

The Agency has the right, on the basis of a petition of the port unit or without it, to prohibit the holder and/or owner of property sunk in the sea from recovering it using means belonging to the holder and/or owner of the property and/or to a ship-lifting organization selected by him, if the carrying out of works with these means and/or the technology of their carrying out poses a threat to human life and/or health, hinders safe navigation and/or may cause pollution of the environment. In this case, the Agency is authorized to recover the property sunk in the sea at the expense of its holder and/or owner or to require the holder and/or owner of the said property to use appropriate means and technology.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 111🔗

The recovery, destruction and/or removal of military property sunk in the sea shall be carried out, in agreement with the Agency, by the authorized body within the system of the Ministry of Internal Affairs of Georgia.

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Article 112🔗

Property sunk in the sea that has been recovered accidentally shall be handed over to the Agency.

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Article 113🔗

1. The holder and/or owner of property sunk in the sea loses the right to the property if he does not recover it or does not claim it within the period established by this Code, in compliance with the period and conditions determined by paragraph 1 of Article 108 of this Code.

2. The recovery of state-owned property sunk in the sea shall be carried out by the holder of a licence for the recovery of state-owned scrap metal and non-ferrous metal sunk in the territorial sea and internal waters of Georgia, provided for by the Law of Georgia "On Licences and Permits", except where the recovery of state-owned property sunk in the sea is carried out by the Agency or a port unit in accordance with this Code.

Law of Georgia of 22 June 2012 No. 6545 – website, 04.07.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 114🔗

1. A contract for the carriage of goods by sea is a written contract under which the carrier of the goods or the freighter undertakes to carry the goods and deliver them to the consignee, while the consignor or the charterer undertakes to pay the cost of carriage (freight).

2. Persons who conclude a written contract on the chartering of a ship (charter party) shall be considered as the charterer and the freighter.

3. In accordance with paragraph 4 of Article 31 of the United Nations Convention "on the Carriage of Goods by Sea", the following conventions are in force in Georgia: the 1924 International Convention "for the Unification of Certain Rules relating to Bills of Lading" ("Hague-Visby Rules") and the 1978 United Nations Convention "on the Carriage of Goods by Sea" ("Hamburg Rules").

Article 115🔗

1. The following shall be indicated in the charter party as the main requisites:

a) the names of the parties;

b) the name of the ship;

c) the name of the cargo;

d) the ports of loading and destination (the direction of movement of the ship);

e) the cost of carriage (freight);

f) the main obligations of the parties and the terms of carriage.

2. By agreement of the parties, other additional terms may be included in the charter party.

3. The charter party shall be signed by the freighter and the charterer or their authorized representatives.

Article 116🔗

1. The acceptance, importation or exportation of cargo may be prohibited by the Agency only in the cases provided for by paragraph 3 of this Article. It shall immediately notify the Minister of Economy and Sustainable Development of Georgia and other interested persons thereof.

2. A prohibition, temporary suspension or restriction of the acceptance of cargo for carriage may be introduced for a specific direction when carrying from a specific port or to a specific port. The Agency shall immediately notify the consignor of the cargo and the relevant agencies thereof.

3. In the event of natural phenomena, failure and accident, as well as the declaration of quarantine, when movement is stopped, the acceptance of cargo may be temporarily suspended and/or restricted by order of the port captain, which shall be immediately notified to the Agency, which shall determine the time limits for the temporary suspension and/or restriction of the acceptance of cargo and shall publish them in the "Notices to Mariners".

Law of Georgia of 30 March 2007 No 4598-LHG I, No 11, 10 April 2007, Art. 102

Law of Georgia of 23 December 2008 No 851-LHG I, No 40, 29 December 2008, Art. 277

Law of Georgia of 26 October 2010 No 3750-LHG I, No 62, 5 November 2010, Art. 390

Law of Georgia of 22 February 2011 No 4222 – website, 10 March 2011

Article 117🔗

The rules set out in this Chapter shall apply in all cases unless otherwise provided by the contract for the carriage of goods by sea concluded between the parties.

Article 118🔗

1. Legal relations between the carrier of the cargo and the consignee shall be determined by the bill of lading or the sea waybill.

2. The terms of the contract on the carriage of cargo by sea, which are set out in the bill of lading or the sea waybill, must be performed by the consignee of the cargo, if the bill of lading or the sea waybill indicates the contract of carriage by sea in which these terms are set out.

Article 119🔗

A bill of lading is a document of title to the cargo, which confirms the contract of carriage by sea and the acceptance or loading of the cargo by the carrier. Upon presentation of the bill of lading, the carrier shall be obliged to deliver the cargo.

Article 120🔗

1. After acceptance of the cargo on board the vessel, the carrier shall, at the request of the consignor of the cargo, be obliged to hand over to him a bill of lading (or a sea waybill) confirming that the carrier has received the cargo indicated in the bill of lading.

2. The carrier of the cargo may, instead of a bill of lading or a sea waybill, issue another document confirming the acceptance of the cargo for carriage. Such a document constitutes the primary document of the acceptance of the cargo by the carrier (as described in that document) and of the contract of carriage by sea.

3. The bill of lading shall be drawn up on the basis of a document signed by the consignor of the cargo, which must contain the data specified in subparagraphs „a“–„j“ of Article 121 of the Code.

4. The consignor of the cargo shall be liable to the carrier for the consequences caused by the inclusion of incorrect, inaccurate or incomplete data in the document.

Article 121🔗

The following shall be stated in the bill of lading:

a) the general characteristics of the cargo, the principal marks necessary for the identification of the cargo, a direct indication of the dangerous or special properties of the cargo, the number of packages or pieces and the weight or quantity of the cargo. Furthermore, all particulars shall be stated in the form furnished by the shipper;

b) the external appearance of the cargo;

c) the name of the carrier and the address of its principal place of business;

d) the name of the shipper;

e) the name of the consignee (nominal bill of lading), delivery of the cargo to the order of the named person (order bill of lading) or delivery of the cargo upon presentation of the bill of lading (bill of lading to bearer).

f) the port of loading in accordance with the contract of carriage of goods by sea and the date of receipt of the cargo on board the vessel by the carrier;

g) the port of discharge in accordance with the contract of carriage of goods by sea;

h) the number of originals of the bill of lading, if there is more than one;

i) a statement as to whether the carriage is governed by the International Convention of 1924 for the Unification of Certain Rules of Law relating to Bills of Lading ("Hague-Visby Rules"), or by the United Nations Convention of 1978 on the Carriage of Goods by Sea ("Hamburg Rules").

j) in a certain case, a statement that the cargo shall be stowed or may be stowed on deck;

k) the amount of freight payable by the consignee or any other indication relating to the payment of freight by him;

l) the place and date of issue of the bill of lading;

m) the signature of the carrier or of a person acting on his behalf.

Article 122🔗

The carrier shall be obliged to hand over to the shipper several copies of one and the same bill of lading. Each of them shall state the total number of bills of lading. After the cargo has been delivered against one of the originals of the bill of lading, all other copies shall be void.

Article 123🔗

The transfer of a bill of lading shall be effected in compliance with the following rules:

a) a nominal bill of lading may be transferred by a nominal endorsement or in any other form corresponding to the rule established for the assignment of a loan claim;

b) an order bill of lading may be transferred by a nominal or blank endorsement;

c) a bill of lading to bearer shall be transferred in the usual manner.

Article 124🔗

1. The shipper shall be entitled to demand:

a) the return of the cargo before the departure of the vessel from the port;

b) delivery of the cargo at an intermediate port;

c) delivery to a person not named in the bill of lading, provided that he produces all copies of the bills of lading issued to the shipper and complies with all the provisions of this Code on waiver of maritime carriage or provides appropriate security.

2. Any person who holds a bill of lading on lawful grounds and who holds all copies of the bill of lading or the sea waybill shall enjoy the same right.

Article 125🔗

1. Cargo whose transportation without loss, shortage or damage necessarily requires tare and packing shall be placed in properly arranged tare and well packed, so that during transportation and transshipment its undamaged and complete preservation is ensured.

2. Every individual cargo package shall be given complete and clear marking in accordance with the rules of maritime transportation.

Article 126🔗

1. The carrier shall, in advance, before the commencement of the voyage, [ensure] the vessel:

a) bring it into seaworthy condition;

b) ensure its technical readiness for navigation;

c) properly equip and supply it;

d) man it with a crew;

e) arrange trims and all other holds by which cargo is transported, so that proper receipt, transportation and preservation of cargo are ensured.

2. The carrier shall not be liable for the unseaworthiness of the vessel if it proves that this was caused by defects which, despite due diligence, could not be discovered (latent defects).

3. An agreement of the parties that contradicts the first paragraph of this article is void.

Article 127🔗

The shipper shall timely transfer to the carrier all documents related to the cargo in accordance with the requirements of port, sanitary and other administrative rules, as well as the customs legislation of Georgia. The shipper shall be liable to the carrier for damage caused to it by late transfer, incorrect or incomplete preparation of the said documents.

Law of Georgia of 12 November 2010 No 3806-LHG I, No 66, 03.12.2010, Art. 414

Law of Georgia of 27 March 2012 No 5961 – website, 12.04.2012

Law of Georgia of 28 June 2019 No 4923 – website, 04.07.2019

Article 128🔗

Loading onto another vessel instead of the vessel previously selected for cargo transportation may be done only with the consent of the shipper or the charterer, except in cases where the transshipment is caused by a technical necessity arising after the commencement of loading of the vessel.

Article 129🔗

Cargo on the vessel shall be stowed at the discretion of the master of the vessel. At the same time, placement of cargo on deck without the written consent of the shipper is inadmissible. An exception is cargo whose loading on deck is permitted by current rules and customs. The carrier shall be liable for the correct placement, securing and separation of cargo on the vessel. The carrier's instructions regarding loading, securing and separation shall be mandatory for execution by all natural and legal persons who carry out cargo operations.

Article 130🔗

Cargo may be transported in a lighter sealed by the shipper, in a separate hold of the vessel, or in a container.

Article 131🔗

The time during which loading or unloading of the vessel must take place (laytime) shall be determined by agreement of the parties, and in the absence of such agreement – by the norms of loading and unloading of the vessel accepted at the port unit.

Law of Georgia of 10 May 2022 No 1547 – website, 24.05.2022

Article 132🔗

1. By agreement of the parties, additional time (counter-stallage time) may be established after the expiry of the time fixed for the loading and unloading of the vessel and the completion of cargo operations, as well as the amount of the fee (demurrage) payable to the carrier for the detention of the vessel during the counter-stallage time, and also a reward (dispatch) for completing the loading and unloading of the vessel before the expiry of the stallage time.

2. If there is no agreement of the parties, the duration of the counter-stallage time and the amount of the fee for the detention of the vessel by the carrier, as well as the amount of the reward payable to the charterer or to the shipper for the loading and unloading of the cargo before the term, shall be determined in accordance with the terms and rates that are customarily accepted in the relevant port unit.

3. In the absence of rates, the amount of the fee for the detention of the vessel shall be determined by the costs of maintaining the vessel and the crew, while the reward for completing the loading and unloading before the term shall be determined by half of the amount payable for the detention of the vessel.

Law of Georgia of 10 May 2022 No. 1547 – website, 24 May 2022.

Article 133🔗

During the loading of the vessel, after the expiry of the counter-stallage time, the carrier shall have the right, in the event of further delay, to demand compensation for the damage caused and to send the vessel to sea, even if the cargo predetermined in advance has not been fully loaded onto the vessel for reasons independent of the carrier. In this case, the carrier shall have the right to receive the full freight.

Article 134🔗

1. If the vessel has been chartered in full by the shipper, the master of the vessel shall not have the right, before the expiry of the stallage and counter-stallage time, to refuse to accept the cargo delivered, if there was an agreement between the parties to that effect, even in the case where the acceptance and stowing of the cargo may require the detention of the vessel for longer than the established time.

2. After the expiry of the counter-stallage time, for each day of detention of the vessel, the shipper shall be obliged to compensate the carrier for the damage caused.

3. If only a certain part of the vessel has been allocated for the carriage of the cargo, before the expiry of the stallage (or stallage and counter-stallage) time, the master of the vessel shall have the right to refuse to accept cargo delivered late, if the stowing of the cargo will cause additional delay of the vessel, thereby causing damage to the remaining cargo. At the same time, the carrier retains the right to receive the freight in full.

Article 135🔗

If the vessel in its entirety or in part, or certain holds of the vessel, are designated for the carriage of cargo, the shipper of the cargo may demand the removal of third-party cargo from the vessel or the holds at the port of departure, and if the vessel is chartered in full – upon entry into any port. If the third-party cargo has not been removed from the vessel in a timely manner, the shipper shall have the right to demand a corresponding reduction of the freight, as well as compensation for the damage caused.

Article 136🔗

1. If easily flammable, explosive or other dangerous cargo has been delivered under an incorrect designation and, upon acceptance, the carrier could not have ascertained the properties of the cargo by external inspection, he has the right, taking into account the circumstances, at any time to unload, destroy or render it harmless, without compensating the sender of the cargo for damage.

2. The sender of the cargo shall be liable for all damage caused by him to the carrier or a third party through the carriage of easily flammable, explosive or other dangerous cargo. In such case, the freight shall not be refunded, and if the freight has not been paid at the time of dispatch of the cargo, the carrier has the right to recover it in full.

Article 137🔗

If the cargo named in Article 136 of the Code has been accepted on board the ship with the consent of the carrier and creates a danger to the ship, the persons on board and the cargo, the carrier has the right to act in accordance with paragraph 1 of Article 136 of the Code. In this case, the sender of the cargo shall not be liable to the carrier for damage caused as a result of the carriage of this cargo, except in the case of general average. The carrier has the right to demand the amount of freight proportionate to the actual distance of carriage up to the moment of its termination.

Article 138🔗

If the entire ship is intended for the carriage of cargo, the carrier shall be obliged, upon the demand of the sender, to set the ship to sea, even if the cargo has not been fully received. At the same time, the carrier retains the right to receive the full freight.

Article 139🔗

If the value of the cargo on board the ship cannot cover the freight and other cargo expenses of the carrier, and the sender has not fully paid the value of the freight before the departure of the ship and has not provided additional security, the carrier has the right, before the departure of the ship, to cancel the contract and demand half of the agreed freight, the demurrage charge (if such occurred), as well as compensation for other expenses. The unloading of such cargo shall be at the expense of the sender.

Article 140🔗

1. If the entire ship is intended for the carriage of cargo, the shipper or the charterer has the right to withdraw from the contract, for which he must pay:

a) half of the full freight, the cost of the ship's detention (if such occurred), the carrier's cargo expenses, and amounts not included in the freight, if the shipper withdrew before the expiry of laytime or counter-laytime or before the ship's departure, depending on which of these two moments occurs earlier;

b) the full freight and other amounts in accordance with subparagraph „a“ of paragraph 1 of this Article, if he withdrew after the occurrence of one of the moments indicated in this subparagraph and the contract was concluded for only one voyage;

c) the full freight of the completed voyage, the other amounts indicated in subparagraph „a“ of paragraph 1 of this Article, and half the freight of the remaining voyages, if he withdrew after the occurrence of one of the moments noted in this subparagraph and the contract was concluded for several voyages.

2. In the case of withdrawal by the shipper from the contract of carriage of cargo by sea before the ship's departure on the voyage, the carrier is obliged to return the cargo to the shipper, even if the unloading causes the ship to be detained for longer than the established period.

3. If the shipper withdrew from the contract while the ship is on the voyage, he has the right to demand acceptance of the cargo only at the port of destination indicated in the contract or at another port where the ship will call out of necessity.

Article 141🔗

1. If under the contract of carriage of cargo by sea a part of the ship is at the disposal of the shipper of the cargo, he may withdraw from the contract on condition that he pays the full freight, the cost of the ship's detention (if such occurred) and reimburses the carrier for the cargo expenses which were not included in the full freight.

2. At the request of the shipper of the cargo, the carrier is obliged to deliver the cargo before its arrival at the port of destination only if the carrier himself and other shippers of cargo will not suffer damage thereby.

Article 142🔗

1. Before the ship's departure from the port, either party may withdraw from the contract of carriage of cargo by sea without reimbursing the other party for the costs related thereto in the following cases:

a) during military or other such actions when a danger may arise of the ship or cargo being seized by another;

b) when the ports of departure or destination are under blockade;

c) when the ship is detained by order of representatives of the authorities for reasons independent of the parties to the contract;

d) in the case of use of the ship for special purposes by the State of the flag or of the port;

e) when the export of the cargo to be carried from the port of departure or its entry into the port of destination is prohibited by the authorities.

2. The cases indicated in subparagraphs „c“ and „d“ of paragraph 1 of this Article do not constitute grounds for withdrawal from the carriage of cargo by sea without compensating the other party for damage, if such delay is short.

3. In the cases provided for by this Article, the carrier shall not bear the transshipment costs.

Article 143🔗

Upon the occurrence of the circumstances provided for by Article 142 of this Code, each party has the right to repudiate the contract also during the voyage. In this case, the consignor shall reimburse the carrier for all expenses related to the cargo, including unloading expenses, as well as the freight in proportion to the actual distance of carriage of the cargo.

Article 144🔗

1. The contract for the carriage of cargo by sea shall unconditionally lose force, and the parties shall not be obliged to compensate each other for the damage caused, if, after the conclusion of the contract and before the departure of the vessel from the port of loading, the following circumstances occur independently of the parties to the contract:

a) the vessel perishes or is seized by force;

b) the vessel is considered unfit for navigation;

c) the specific cargo determined perishes;

d) after delivery for loading the cargo perished, and the consignor is unable to deliver other cargo in its place in time.

2. Owing to the said circumstances, the contract for the carriage of cargo by sea shall lose force also while the vessel is on the voyage. At the same time, the carrier shall be entitled to freight in proportion to the actual distance of carriage, based on the amount of cargo saved or delivered by it.

Article 145🔗

1. If the vessel is unable to enter the port of destination due to a prohibition by the authorities, natural phenomena, or other reasons independent of the carrier, the carrier shall be obliged to immediately notify the consignor of the cargo thereof.

2. If the whole vessel is intended for the carriage of the cargo and no instruction from the consignor of the cargo as to how to deal with the cargo is received within a reasonable time after the sending of the notification, the master of the vessel shall have the right to act at his discretion and take the decision most favourable for the consignor of the cargo regarding unloading at the nearest port or return the cargo to the port of dispatch.

3. If part of the vessel is intended for the carriage of the cargo and at the same time it is not possible for the vessel to enter the port of destination, the master shall be obliged to unload the cargo at another port in accordance with the instruction of its consignor. If the master of the vessel does not receive such an instruction from the consignor of the cargo within three days after the sending of the notification, he shall have the right to unload the cargo at the nearest port at his discretion and notify the consignor of the cargo thereof. The master of the vessel shall have the right to take the same decision if the fulfilment of the instruction of the consignor of the cargo is impossible without causing damage to the owners of other cargo on the vessel.

4. The consignor of the cargo shall be obliged to reimburse the carrier for the expenses incurred while awaiting the instruction, as well as all expenses related to the cargo and the freight in proportion to the actual distance of carriage of the cargo.

Article 146🔗

The carrier of cargo shall be obliged to carry the cargo within the established time limit, and if no such time limit is established, within the time limit customarily accepted.

Article 147🔗

Deviation by a ship from the established course on the sea for the purpose of saving a person, the ship or the cargo, as well as other reasonable deviation, if it is not caused by an incorrect action of the carrier, shall not be considered a breach of the contract of carriage of cargo by sea.

Article 148🔗

Cargo at the port of destination shall be delivered to the holder of the original bill of lading:

a) according to a nominal bill of lading – to the consignee indicated in the bill of lading or to the person to whom the bill of lading was transferred by nominal endorsement or by another form established for the assignment of loan claims;

b) according to an order bill of lading – to the consignee or the consignor, depending on whether the bill of lading is made "by order of the consignor" or "by order of the consignee", and if the bill of lading contains transferable endorsements – to the person indicated at the end of the continuous series of endorsements or to the presenter of the last blank-endorsed bill of lading;

c) according to a bill of lading issued to bearer – to the "bearer of the bill of lading".

Article 149🔗

1. The consignee and the carrier have the right, before the delivery of the cargo, to demand its inspection and verification of quantity. The costs related thereto shall be borne by the party that demanded the inspection of the cargo or the verification of quantity.

2. If a defect of the cargo is found for which the carrier is liable, the costs shall be reimbursed by him.

Article 150🔗

1. If, upon receipt of cargo to be carried under a bill of lading, the consignee did not notify the carrier in writing of the shortage or damage of the cargo, it shall be considered that the cargo was delivered to the consignee in accordance with the bill of lading, until the contrary is proven.

2. In the event that the consignee and the carrier jointly inspected and checked the cargo, a written statement on shortage or damage is not mandatory.

3. If the detection of loss, shortage or damage of the cargo by an ordinary method was impossible, the consignee may declare this within three days from the receipt of the cargo.

Article 151🔗

In the case of loss, shortage or damage of cargo for reasons independent of the carrier, freight shall be paid in full. In the cases provided for by Articles 137, 144, 145, freight shall be paid in proportion to the actual distance of carriage.

Article 152🔗

1. The total amount due to the carrier shall be paid by the consignor (charterer). In cases provided for by an agreement concluded between the consignor and the carrier, as well as in the case of cabotage carriage, in accordance with the rules applicable to maritime transport of Georgia, the consignee may be permitted to pay the carriage charge.

2. The consignee shall be obliged, upon receipt of the cargo, to pay the freight (if it has not been paid earlier), the demurrage (if such has occurred) and the cargo costs, and in the event of general average, to pay the general average contribution or to provide appropriate security.

3. The carrier shall have the right not to deliver the cargo until the carriage charge is reimbursed or security is provided.

4. If the carrier delivers the cargo, it shall no longer have the right to demand unpaid reimbursement, except where it was unable to retain the cargo for reasons independent of it.

Article 153🔗

1. If part of a ship is used for carriage, and at the port of destination the consignee has not claimed the cargo, has not given any instruction concerning it, or has refused to accept the cargo, the carrier shall have the right to store the cargo in a safe place at the risk and expense of the consignor and shall be obliged to notify the consignor thereof.

2. If the ship is used in its entirety for the carriage of cargo, and the consignee has not appeared at the port of destination or has refused to accept the cargo, the master of the ship shall be obliged to immediately notify the consignor thereof. The master shall unload the cargo at the port and deposit it in a warehouse only after the expiry of the unloading period and the lapse of counter-stallia time, if during that time no other instruction for the dispatch of the cargo has been received. The time spent by the carrier for the delivery of the cargo shall be counted as demurrage.

3. If the cargo deposited for storage has not been claimed within two months from the ship's entry into the port and the consignor does not reimburse the carrier for all expenses related to this carriage, the carrier shall have the right to sell this cargo and to notify the consignor thereof. Perishable unclaimed cargo may be sold before the expiry of the said period. The carrier shall notify the consignor thereof.

4. The rules and time limits for the acceptance and storage of cargo by the consignee at a Georgian seaport shall be determined, and the sale of cargo unclaimed by the consignee shall also be carried out, in accordance with the procedure established by the Ministry of Finance of Georgia.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Article 154🔗

1. In the ports of Georgia, during cabotage carriage, as a result of delayed removal of the cargo due to the fault of the consignee, the accumulated costs of storing the cargo at the port may be tripled.

2. Collection of the increased fee for storage of the cargo shall begin not earlier than after the expiry of one day, and only after the natural or legal person from whom the increased fee is to be recovered has been notified in writing thereof.

Article 155🔗

1. The amount obtained from the sale of the cargo, less the amount due to the carrier, shall be credited to the carrier's deposit for the purpose of being issued according to entitlement.

2. If the amount obtained from the sale of the cargo is insufficient to cover the costs of sale and storage of the cargo, as well as other expenses, the carrier shall have the right to recover the shortfall from the shipper.

3. If within six months from the sale of the cargo no one claims his or her right to the amount obtained from the sale, then the amount on the debit shall be credited to the budget of Georgia. The amount received from the sale of undocumented cargo shall be credited to cover the carrier's damage.

4. The amount received from the sale of undocumented cargo shall be credited to the carrier's account to cover the damage caused to it as a result of compensation for the cargo shortage.

Article 156🔗

1. The carrier shall be liable for loss, shortage or damage of cargo received on the ship, unless it can prove that the loss, shortage or damage was caused by circumstances independent of it, namely:

a) as a result of the operation of an irresistible force (force majeure);

b) by perils and accidents at sea and in other navigable waters;

c) by fire for which the carrier is not at fault;

d) by saving human life, the ship and the cargo, or by attempting to save them;

e) by an order issued by the authorities or as a result of its action (detention, arrest, quarantine, etc.);

f) by military action, a terrorist act, civil commotion;

g) by the negligence or other act of the shipper or consignee;

h) by a latent defect of the cargo, its qualitative or natural shortage not exceeding the established norms;

i) by externally unnoticeable defects in the tare and packing of the cargo;

j) by insufficient or unclear marking of the cargo;

k) in the event of a strike or due to other circumstances that caused a complete or partial suspension or restriction of work.

2. Under this Article, liability shall be imposed on the carrier upon receipt of the cargo to be carried and shall be removed at the moment of its delivery.

3. A contract for the carriage of cargo by sea that does not comply with the rules of this Article, except for an agreement on liability from receipt of the cargo until loading onto the ship and after unloading until delivery of the cargo, shall be void.

Article 157🔗

1. For loss, shortage, damage or spoilage of cargo, except cargo to be transported by cabotage, the carrier shall not be liable if it proves that this occurred during navigation or management of the ship as a result of negligence or other act of the captain, other members of the ship's crew or the pilot.

2. For loss, shortage, damage or spoilage of cargo caused by an act or negligence of the persons listed in the first paragraph during loading, stowage, carriage, unloading or delivery of the cargo, the carrier shall be liable in accordance with Article 156 of this Code.

Article 158🔗

The carrier shall not be liable for shortage of cargo delivered to the port of destination if:

a) the ship's holds, lighters, containers are in good order, and the seals placed by the consignor are undamaged;

b) the packaging is whole, in proper condition and there are no traces of its opening en route;

c) the cargo is accompanied by a representative of the consignor or consignee and the consignee cannot prove that the shortage of cargo was caused by the carrier's fault.

Article 159🔗

1. The carrier shall compensate damage caused by loss or damage of cargo as follows:

a) for loss or shortage of cargo – the value of the shortage of cargo;

b) for damage or spoilage of cargo – in the amount by which the value of the cargo has decreased.

2. The carrier shall return the freight received if it is not included in the value of the lost or short cargo.

Article 160🔗

1. The value of lost or short cargo shall be determined by the prices in effect at the port of destination at the time of the ship's entry into or presence in that port. If it is impossible to determine the prices in effect at the port, by the prices in effect at the port of dispatch at that time, to which the carriage costs shall be added.

2. From the amount of compensation for loss, shortage, damage or spoilage of cargo, the costs of carriage of the cargo (freight, duty and others) that were to be paid by the consignor but could not be paid due to loss, shortage, damage or spoilage of cargo shall be deducted.

Article 161🔗

1. If the value of the cargo was not declared and entered in the bill of lading, compensation for loss, shortage, damage or spoilage per unit of cargo shall not exceed 666.67 accounting units (SDR) of the International Monetary Fund or 2.0 accounting units per one kilogram of gross mass of the lost, short, damaged or spoiled cargo, depending on which amount is greater as a result of deducting the value of the container or the value of other means of transport of the consignor. From this amount shall be deducted the value of the container or other means of transport belonging to the consignor.

2. An agreement on the reduction of these amounts is void.

3. The liability of the carrier shall not be limited by the rules provided for by paragraph 1 of this Article if it is proved that the loss, shortage, damage or spoilage was caused by gross negligence or intentional act.

4. The liability of the carrier's agent or servant shall not be limited by the rules provided for in this Chapter if it is proved that the loss, shortage, damage or spoilage was caused by gross negligence or intentional act.

5. If the bill of lading states the number of places and units of cargo placed in a container or other receptacle, for the purposes of this Article that number shall be taken according to the bill of lading.

6. If the bill of lading does not state the number of places and units of cargo placed in a container or other receptacle, the quantity of cargo shall be considered as one place of cargo or one unit of cargo.

Article 162🔗

In the event of loss of or damage to a container or other device, the carrier shall be liable within the following scope:

a) for the loss of a container or other auxiliary device — within the value of the container or auxiliary device, taking into account their actual wear as at the moment of loss;

b) for damage to a container or device — in the amount of the cost of its repair at the port of destination, if it was not repaired by the carrier independently and/or at its own expense before delivery to the consignee.

Article 163🔗

Freight and other payments due to the carrier, as well as the term for their payment, shall be determined by the contract for the carriage of cargo by sea. The consignor or consignee shall pay a penalty for overdue freight in accordance with the contract for the carriage of cargo by sea.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Article 164🔗

For the delay of a vessel, late delivery or non-delivery of cargo, loading-unloading operations carried out by the forces of the consignor or consignee — for the protraction of such operations, and for other violations conditioned by the action of the consignor or consignee, the consignor or consignee shall be liable in accordance with the contract for the carriage of cargo by sea.

Article 164¹🔗

For the purposes of this Chapter, the terms used therein have the following meaning:

a) carrier – a person who has concluded, or in whose name a contract for the carriage of a passenger or a contract for the carriage of a passenger and his/her baggage has been concluded, regardless of whether he/she performs the carriage of the passenger or the carriage of the passenger and his/her baggage himself/herself or through a performing carrier;

b) performing carrier – a person (other than the carrier) who is the shipowner, charterer or operator and who actually performs the carriage of a passenger or the carriage of a passenger and his/her baggage or part of the carriage of a passenger or the carriage of a passenger and his/her baggage;

c) a carrier who actually performs the carriage of a passenger or the carriage of a passenger and his/her baggage or part of the carriage of a passenger or the carriage of a passenger and his/her baggage – a performing carrier or, if the carrier actually performs the carriage of a passenger or the carriage of a passenger and his/her cargo, – the carrier;

d) baggage – an item or a motor vehicle which the carrier carries under a contract of carriage, except:

d.a) an item or a motor vehicle carried under a charter party, a bill of lading or a contract whose main purpose is the carriage of goods;

d.b) a live animal;

e) cabin baggage – baggage placed in the passenger's cabin or otherwise in the passenger's possession or under his/her supervision or control, as well as baggage which the passenger keeps in his/her motor vehicle or on his/her motor vehicle, except for the case provided for by subparagraph "c" of Article 175 of this Code;

f) incident – sinking, capsizing, stranding or collision with another ship, explosion or fire on board the ship, defect of the ship.

Law of Georgia of 17 September 2019 No. 4944 – website, 01.10.2019.

Article 165🔗

1. Under a contract for the carriage of a passenger by sea, the carrier shall safely carry the passenger to the port of destination. If the passenger delivers baggage, the carrier shall carry the baggage to the port of destination and deliver it to the person entitled to receive the baggage.

2. The passenger shall pay the passenger fare and, in the case of delivery of baggage, also the fee for its carriage.

3. The carriage of a passenger by sea includes the time the passenger is on board the ship and the time of embarkation and disembarkation, as well as the time of transportation by navigable route from the shore to the ship and back, if the fee for this type of service is included in the price of the passenger ticket or if a ship provided by the carrier is used to transport the passenger.

Article 166🔗

A ticket issued by the carrier confirms the conclusion of the contract of carriage of a passenger by sea and the payment of the fare. Delivery of baggage to the carrier is certified by a baggage receipt.

Article 167🔗

1. The following rules set out in this Chapter shall apply in cases where otherwise is not provided by agreement of the parties.

2. Any agreement of the parties restricting the rights of the passenger provided by this Chapter shall be void.

Article 168🔗

1. During navigation, for the safe carriage of the passenger, the carrier shall, before the commencement of the carriage of the passenger by sea, ensure that the vessel is in the condition provided by paragraph 4 of Article 14 of this Code, man the crew of the vessel and keep the vessel in the said condition throughout the entire time of the carriage of the passenger by sea.

2. A carrier which actually performs the carriage of the passenger or the carriage of the passenger and the transportation of his baggage or part of the carriage of the passenger or the carriage of the passenger and the transportation of his baggage by a vessel registered in Georgia carrying more than 12 passengers, shall, before the commencement of the carriage of the passenger by sea, effect insurance of liability for the death of the passenger or damage to health, which covers the carrier's liability for the death of the passenger or damage to health.

3. The amount of compulsory insurance in a specific case for each passenger shall not be less than 250,000 units of account.

4. If the carrier which actually performs the carriage of the passenger or the carriage of the passenger and the transportation of his baggage or part of the carriage of the passenger or the carriage of the passenger and the transportation of his cargo meets the requirements established by paragraphs 2 and 3 of this Article, the Agency shall issue, for the vessel provided by paragraph 2 of this Article, a certificate confirming the insurance.

5. A vessel flying the state flag of Georgia shall not be admitted to international navigation if it does not have the certificate provided by paragraph 4 of this Article.

6. When entering a port unit or leaving a port unit, a vessel carrying more than 12 passengers must have a certificate confirming compulsory insurance.

7. The rules and conditions for the issuance, verification and recognition of the certificate confirming compulsory insurance shall be established by the Agency.

Law of Georgia of 17 September 2019 No. 4944 – website, 01.10.2019.

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022.

Article 169🔗

1. The passenger has the right to:

a) carry children free of charge or on preferential terms;

b) carry hand luggage free of charge within the established norm;

c) deliver baggage for carriage upon payment of a fee.

2. The rules of the benefits and services to which the passenger has the right to receive shall be approved by the Agency.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011.

Article 170🔗

1. A passenger has the right, at any time before the ship’s departure, and after the voyage has begun, at any port at which the ship calls for the boarding and disembarking of passengers, to terminate the contract of carriage by sea.

2. A passenger who has notified the carrier of the termination of the contract of carriage by sea has the right to recover the fare for the carriage of the passenger and baggage within the procedure, time limit and amount provided for by the contract.

3. The passenger shall be refunded in full the amount paid for the carriage of the passenger and baggage if he/she:

a) terminates the contract of carriage by sea before the expiry of the established time limit;

b) cannot appear on board the ship because of illness or, for the same reason, refuses the voyage and presents a medical certificate;

c) refuses the voyage for a reason arising from the carrier’s actions.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10 April 2007, Art. 102

Article 171🔗

1. The carrier of passengers has the right to terminate the contract for the carriage of a passenger by sea on the grounds specified in paragraph 1 of Article 142 of this Code.

2. The contract for the carriage of a passenger by sea shall be considered cancelled if the cases specified in paragraph 1 of Article 144 of this Code occur (except for subparagraphs “c” and “d”).

3. Upon cancellation of the contract for the carriage of a passenger by sea before the ship’s departure, the passenger shall be fully reimbursed the fare for the carriage of the passenger and baggage; and in the case of termination of the contract after the start of the voyage, part of the fare in proportion to the distance to be covered.

4. If, due to a natural disaster, unsatisfactory sanitary-epidemiological conditions at the ports of departure and destination or on the route of the voyage, as well as other events not dependent on the carrier, performance of the contract for the carriage of a passenger by sea becomes impossible, the carrier has the right to suspend the ship’s departure, change the route of carriage, the place of boarding and/or disembarking of passengers.

Article 172🔗

1. Under the contract for the maritime carriage of a passenger, the carrier shall be obliged to insure the passenger and his/her luggage against accident in accordance with the legislation of Georgia.

2. The insurance amount paid by the passenger shall be included in the ticket price.

3. If a passenger died or was injured as a result of the sinking of the ship, collision of ships, stranding on a shoal, explosion, fire or defect of the ship, the intentional act or negligence of the carrier, its employees or agents acting within the scope of their official responsibility shall be presumed, unless the contrary is proved.

4. The scope of the carrier's liability in the event of the death or impairment of health of the passenger, as well as for damage caused to luggage, shall be determined by Article 175 of this Code.

5. If an international treaty on the carriage of passengers has been concluded with the participation of Georgia, in the event of the death or impairment of health of the passenger, the carrier's liability shall be determined by the respective treaty.

6. The burden of proving the extent of the damage and that the incident occurred during carriage shall lie with the claimant.

Article 173🔗

If luggage delivered for storage has not been claimed within six months from the entry of the ship into the port, it may be sold in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Article 174🔗

1. The carrier shall be liable for the loss, shortage, damage or delayed delivery of luggage received, if all this was caused by the fault of the carrier, its employees and agents.

2. In the case of loss or damage of hand luggage, the carrier shall be liable only if the passenger proves that this was caused by gross negligence or intentional act of the carrier.

3. In the case of loss, shortage or damage of luggage, the passenger shall notify the carrier or its agent thereof in writing immediately, and in the case of a "latent defect" – within 3 days. Otherwise, it shall be considered that the passenger received the luggage undamaged, until the contrary is proved.

Article 175🔗

The liability of the carrier shall be limited to:

a) for the death or damage to the health of a passenger – 400,000 units of account per passenger;

b) for the loss or damage of a motor vehicle (including luggage) – 12,700 units of account per motor vehicle;

c) for the loss or damage of luggage in a cabin – 2,250 units of account per passenger;

d) for the loss or damage of luggage (except for luggage provided for by subparagraphs "b" and "c" of this Article) − 3,375 units of account per passenger.

Law of Georgia of 17 September 2019 No. 4944 – website, 01.10.2019.

Article 175¹🔗

1. In the event of the death of a passenger or damage to his/her health as a result of an incident during the maritime carriage of a passenger, the carrier who actually performs the carriage of the passenger or the carriage of the passenger and the transportation of his/her luggage or part of the carriage of the passenger or the carriage of the passenger and the transportation of his/her luggage, shall be obliged, within 15 calendar days from the identification of the person entitled to receive compensation for the damage caused, to pay him/her an advance in proportion to this damage, for urgent economic needs. In the event of the death of the passenger, the amount of the said advance shall not be less than the equivalent of EUR 21,000 in GEL determined in accordance with the exchange rate of the National Bank of Georgia existing on the day of its payment.

2. The advance provided for by paragraph 1 of this article is not an acknowledgement of the existence of a claim by the carrier who actually performs the carriage of the passenger or the carriage of the passenger and the transportation of his/her luggage or part of the carriage of the passenger or the carriage of the passenger and the transportation of his/her luggage, and it may be deducted from any subsequent compensation paid under this Chapter. The said advance amount shall not be returned, except where the carrier who actually performs the carriage of the passenger or the carriage of the passenger and the transportation of his/her luggage or part of the carriage of the passenger or the carriage of the passenger and the transportation of his/her luggage proves that the death of the passenger or damage to his/her health was caused by:

a) the fault or negligence of the passenger;

b) war, military operations, civil war, insurrection or an exceptional, unavoidable and insurmountable natural event;

c) an act or omission of a third party whose intention was to cause the incident.

3. The carrier and/or the person performing the carriage shall ensure that the passenger is provided with complete information on the passenger's rights provided for by this Chapter.

4. If the carriage begins in Georgia, the information provided for by paragraph 3 of this article shall be provided to the passenger before boarding the ship, and if the contract for the carriage of the passenger or the carriage of the passenger and the transportation of his/her luggage is concluded in Georgia, the information provided for by paragraph 3 of this article shall be provided to the passenger at the time of conclusion of the said contract (at the time of purchase of the ticket, including in the case where the passenger purchased the ticket via the Internet or by telephone).

Law of Georgia of 17 September 2019 No. 4944 – website, 01.10.2019.

Article 176🔗

1. Under the maritime cruise contract, the cruise organiser undertakes the obligation to carry out a collective voyage by sea with a certain programme (cruise) and to provide the cruise participants with the relevant services (carriage by sea, meals, household and excursion services and a.y.).

2. The cruise participant undertakes the obligation to pay the relevant fee.

Article 177🔗

1. The document confirming the conclusion of a sea cruise contract shall be a voucher issued by the cruise organizer or another equivalent document.

2. The sea cruise contract shall state:

a) the name and type of the vessel;

b) the name, surname and address of the cruise organizer;

c) the name, surname and address of the passenger;

d) the cabin number and class, the cruise price, which includes other expenses incurred as well;

e) the ports of embarkation and disembarkation;

f) the time of departure and arrival;

g) the ports of call;

h) the types of services during the cruise period.

Article 178🔗

The cruise organizer shall, before the start of the cruise, prepare the vessel in accordance with Article 168 of this Code and keep it in such condition throughout the entire cruise.

Article 179🔗

1. The following rules set out in this Chapter shall apply in cases where the parties have not agreed otherwise.

2. Any agreement of the parties that restricts the rights of a cruise participant provided for by this Chapter shall be void.

Article 180🔗

1. A cruise participant shall have the right to withdraw from the sea cruise contract not later than one week before the start of the cruise and to recover the cruise fee in accordance with the procedure and within the time limit established by this contract.

2. If the cruise organizer has failed to provide the cruise participant with the place on the vessel specified by the contract or, with his consent, with an equivalent place on another vessel that is not inferior in comfort to the vessel previously provided for, the cruise participant shall have the right to withdraw from the contract and to recover the cruise fee in full.

Article 181🔗

1. The cruise organizer may withdraw from the contract before the start of the cruise due to the circumstances specified in subparagraphs “a”–“e” of the first paragraph of Article 142 of this Code.

2. If the circumstance specified in subparagraphs “a”–“e” of the first paragraph of Article 142 of this Code arose after the start of the cruise and the cruise was terminated, the contract shall be terminated. In this case, the cruise organizer shall compensate the cruise participant for the part of the fee paid and, at his request, return him to the initial port of the journey.

Article 182🔗

In the event of an extension of the cruise period due to unforeseen circumstances, the cruise organizer shall provide the cruise participant with all services at his own expense.

Article 183🔗

The cruise organizer shall be liable for the death of a cruise participant, impairment of health, loss or damage of things in accordance with Articles 172, 174 and 175 of this Code, as well as for non-fulfilment of other conditions specified in the cruise contract.

Article 184🔗

Under a contract for the chartering of a vessel for a definite period (time charter), the shipowner undertakes the obligation to charter the vessel to the charterer (freighter) for a definite period and for a fee for the carriage of cargo, the carriage of passengers or another purpose of merchant shipping.

Article 185🔗

1. A time charter shall be concluded in writing.

2. The following rules set out in this Chapter shall apply in cases where the parties have not agreed otherwise.

Article 186🔗

The time charter shall state the names of the parties to the contract, the name of the vessel, its technical and operational data (deadweight, cargo capacity, speed and a.y.), the navigation area, the purpose of hire (charter), the amount of freight, the term of the contract, and the place of acceptance and delivery of the vessel.

Article 187🔗

1. Within the scope of the rights granted by the time charter, the charterer of the vessel may independently conclude a contract in its own name with a third party for the chartering of the vessel for a certain period. The conclusion of such a contract does not release the charterer from liability arising from the contract concluded with the shipowner.

2. The rules of this Chapter of the Code shall also apply to a charter party concluded by the charterer of the vessel with a third party.

Article 188🔗

1. The shipowner shall deliver to the charterer a technically sound vessel, taking into account its uninterrupted use for the purpose specified in the time charter.

2. When chartering on the basis of a time charter, the shipowner shall equip and man the vessel with a crew, as well as maintain the seaworthiness of the vessel during the time charter period, and bear the costs of insuring the vessel and maintaining the crew.

Article 189🔗

1. The charterer shall use the vessel only under the conditions and for the purpose provided for by the time charter.

2. The charterer shall, after the expiry of the time charter term, return the vessel in the same condition in which it was received (excluding natural wear and tear).

3. In the event of late acceptance of the vessel, the charterer shall compensate the costs of the vessel's delay.

Article 190🔗

1. If the vessel is chartered for the carriage of cargo, the charterer shall have the right to conclude a contract for the carriage of cargo in its own name, sign the charter party, issue bills of lading and other documents related to carriage.

2. The charterer shall be liable for non-performance of the obligations provided for by these documents, in particular, by the bill of lading and other documents related to carriage.

3. The charterer shall also be liable for the obligations arising from the bill of lading or other documents related to carriage signed by the master of the vessel.

Article 191🔗

When chartering a vessel on the basis of a time charter, the master of the vessel and other members of the crew shall carry out the charterer's instructions relating to the commercial operation of the vessel, except for orders relating to the navigation of the vessel, internal rules and crew composition.

Article 192🔗

The charterer shall be liable for damage caused by the salvage, damage or loss of the chartered vessel, if such damage occurred through its fault.

Article 193🔗

1. The charterer shall be obliged to pay the shipowner the fee in accordance with the procedure and within the time limits established by the time charter.

2. The charterer shall be released from the freight and the expenses related to the ship during the time when, due to a malfunction, the ship is unfit for navigation.

3. If the ship's malfunction is caused by the fault of the charterer, he shall be obliged to pay the full freight and to compensate the damage caused.

4. In the event of delay in the payment of freight, the shipowner is entitled to withdraw the ship from the charterer and to demand compensation for the damage caused by the delay.

Article 194🔗

In the event of the loss of the ship, the freight shall be paid up to and including the day of the loss, and if that day cannot be established, up to and including the day of receipt of the last information about the ship.

Article 195🔗

The remuneration allocated for salvage operations carried out at sea by the crew of a ship chartered under a time charter before the expiry of the time charter term shall be distributed equally between the shipowner and the charterer, with the deduction of the amount necessary for the compensation of the damage caused to the ship and of the share of the members of the ship's crew.

Article 196🔗

1. Under a contract for the hire of a ship without a crew (bareboat charter), the owner of the ship assumes the obligation to transfer the ship without a crew to the hirer (charterer) for navigation for a certain period.

2. After the expiry of the bareboat charter term, the ship may be transferred into the ownership of the charterer, if the contract provides for the right to purchase the ship, the charterer has been performing its contractual obligations and has paid the last freight payment.

3. The bareboat charter contract may be concluded only subject to Article 42 of this Code.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 197🔗

A bareboat charter shall be concluded in writing.

Article 198🔗

1. The bareboat charter shall state:

a) the names of the parties;

b) the purpose of the contract;

c) the name of the ship;

d) the year of construction of the ship;

e) the class of the ship;

f) deadweight and cargo capacity;

g) engine power;

h) speed and fuel consumption;

i) the term of use of the ship, after the expiry of which the right of the owner of the ship may be transferred to the charterer;

j) the amount and time limits for payment of the bareboat charter fee;

k) the time and place of transfer of the ship to the charterer;

l) the right of the charterer to select the crew of the ship;

m) who bears the registration costs;

n) other necessary data.

2. Unless otherwise provided by the contract, the charterer, within the powers provided by the bareboat charter, may conclude a contract in its own name with a third party for the entire term of the bareboat charter or for a certain period (sub-bareboat charter). The conclusion of such a contract does not release the charterer from liability arising from the contract concluded with the shipowner.

Article 199🔗

1. The shipowner shall be obliged to hand over to the charterer a ship fit for navigation for the fulfilment of the purposes envisaged by the bareboat charter.

2. The shipowner shall be liable for all defects that the ship had (including latent defects) at the moment of its handover.

3. A claim on account of the ship's unfitness or other defects may be filed by the charterer within one year from the day of handover of the ship.

Article 200🔗

The rules of the subsequent articles set out in this Chapter shall apply in cases where otherwise is not provided by agreement of the parties.

Article 201🔗

1. The charterer shall be obliged to keep the ship in a fit condition and to bear the costs of its maintenance and repair.

2. The risk of accidental loss or accidental damage shall pass to the charterer together with the handover of the ship.

3. In the case of chartering of the ship without a crew (bareboat charter), during the period of validity of the bareboat charter, the remuneration for the performance of salvage operations at sea by the chartered ship shall belong to the charterer.

Article 202🔗

1. The charterer shall have the right to refuse the bareboat charter and to demand compensation for damage if:

a) the shipowner does not hand over the ship to the charterer within the period determined by the bareboat charter;

b) on account of the defects indicated in the second paragraph of Article 199 of this Code, the charterer is unable to use the ship in accordance with the bareboat charter.

2. The shipowner shall have the right to refuse the bareboat charter and to demand the return of the ship if, within three months from the beginning of each payment period, the charterer has not paid the bareboat charter fee.

Article 203🔗

1. In the case of return of the ship, the shipowner must receive the due part of the bareboat charter fee for the use of the ship.

2. In this case, the due part of the contractual price for the use of the ship shall be returned to the charterer.

3. The charterer shall be obliged to return the ship to the shipowner in the condition in which it existed at the time of its receipt, taking into account natural wear and tear. In the case of deterioration of the ship's condition, the charterer shall compensate the shipowner for the damage.

4. If the charterer has improved the condition of the ship, the shipowner shall be obliged to reimburse the expenses incurred. If the shipowner refuses to reimburse the improvements, the charterer shall have the right to separate out what he has improved, if this is possible.

Article 204🔗

1. Any ship, including one under construction, or a right thereto may be mortgaged (hypothecated) by the shipowner (mortgagor) by way of obtaining a mortgage through a loan or other financial security.

2. The mortgagee may be any natural or legal person of Georgia or of foreign countries who, under the legislation of Georgia, may be given a ship as a pledge.

Article 205🔗

1. The mortgage contract shall specify:

a) the names of the parties;

b) the addresses of the parties;

c) the essence of securing the pledge claims;

d) the form of the mortgage;

e) the term for performance of the obligation;

f) the valuation of the ship and its location;

g) registration of the mortgage, its transfer, the making of amendments or alteration;

h) the sequence of registered mortgages;

i) any other condition raised by one of the parties and agreed upon.

2. The rights and obligations of the parties under a mortgage contract and the procedure for concluding the contract shall be determined by the legislation of the country of the mortgagee, unless otherwise provided by agreement of the parties.

3. A mortgage does not mean alienation of the ship to the mortgagee, just as the mortgagor cannot be considered a person who loses the right of ownership over the mortgaged ship.

Article 206🔗

1. The mortgage contract shall be duly certified and must be entered in the State Register of Ships of Georgia. A record thereof shall be made in the ship's certificate of ownership.

2. The rules for recording a mortgage shall be established by the Agency.

3. For registration of a mortgage, the mortgagor shall submit the original and a notarised copy of the ship mortgage contract.

4. The Agency shall be obliged to provide an extract from the State Register of Ships of Georgia to the mortgagor, and upon request – also to the mortgagee and other interested persons.

5. Registration of a mortgage and issuance of an extract from the State Register of Ships of Georgia shall be subject to a fee.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Article 207🔗

1. If the subject of the mortgage is a ship which has already been mortgaged and constitutes the subject of securing pledge obligations, the rights of the mortgagee of the previous mortgage shall also remain in force.

2. The claims of a subsequent mortgagee shall be satisfied out of the value of the ship after the claims of the previous mortgage have been satisfied.

3. The right of priority among mortgagees to have claims performed shall be satisfied according to the date and hour of their registration in the State Register of Ships of Georgia.

4. The mortgagor shall be obliged to notify every subsequent mortgagee of all existing mortgages, as well as of the nature of the mortgage and the formation of the securing of obligations. In the event of disregarding this requirement, the mortgagor shall be obliged to compensate any mortgagee for all damage related to this matter.

Article 208🔗

The mortgagee shall be entitled to claim compensation for the damage caused if the obligations were not performed within the term provided by the terms of the mortgage. An exception is the case where, under the law on pledge or under the contract, such right arises later or could have been exercised earlier.

Article 209🔗

Under a mortgage, the mortgagee shall be entitled to have its claims fully satisfied out of the mortgaged vessel, namely, the damage caused by the postponement of obligations and interest, and in the cases provided for by the mortgage contract – a penalty. The necessary expenses of the mortgagee for securing the mortgage claims shall also be reimbursed.

Article 210🔗

1. The mortgaged vessel shall be subject to a fine in accordance with the mortgage contract.

2. The sale of the mortgaged vessel on which a fine has been imposed shall be effected in accordance with the legislation in force of Georgia, unless otherwise provided by the mortgage contract.

Article 211🔗

1. A mortgage shall be extinguished:

a) upon repayment of the debt;

b) upon termination of a monetary obligation by another means of repayment of the debt (forced sale of the vessel and others);

c) upon the loss of the vessel, excluding insurance compensation;

d) in the presence of a special contract.

2. At the request of the mortgagor, the mortgagee shall be obliged to provide him with a duly certified document confirming the full or partial performance of the obligation.

3. Upon receipt from the mortgagor of a duly certified document confirming the full or partial performance of the obligation, the mortgage registration authority shall be obliged to immediately enter the relevant notation in the State Register of Vessels of Georgia.

Article 212🔗

If, after the registration of a mortgage in the State Register of Vessels of Georgia, the mortgagor of the vessel becomes bankrupt, the mortgage obligations passed through registration shall be deemed unperformed.

Article 213🔗

1. In the event that, in accordance with the rules established by law, the mortgagee assigns the claims secured by the mortgage to a third person, or, arising from the circumstances of the mortgage security, the mortgagor transfers the debt to another person, the mortgage shall remain in force.

2. Upon receipt of duly certified documents on the transfer by the mortgagee of the claims securing the pledge, or on the transfer by the mortgagor of the right to assign the debt to another person, a relevant notation shall be made in the State Register of Vessels regarding the person to whom all the rights of the mortgagee or all the obligations of the mortgagor are transferred.

Article 214🔗

1. If, by any lawful means, for example, in the event of death or bankruptcy, the rights of the mortgagee pass to another person, this shall be certified by a duly certified declaration by the person to whom these rights are transferred. The declaration shall substantiate the lawfulness of the transfer of the property and the authority of the person into whose ownership the mortgage passes.

2. On the basis of these documents, the name of the person to whom the rights of the mortgagee of the whole vessel or a part thereof have been transferred shall be entered in the State Register of Vessels of Georgia.

Article 215🔗

Under a maritime towage contract, the owner of the vessel, for a remuneration, undertakes the obligation:

a) to tow a vessel or another floating object from one port to another;

b) to tow a vessel or another floating object over a certain distance for a certain period of time;

c) to carry out manoeuvring or stand-by duty in case of necessity.

Article 216🔗

1. A maritime towing contract shall be concluded in writing.

2. The contract shall specify:

a) the ports of departure and destination;

b) the time of towing;

c) the rights and obligations of the parties;

d) liability for breach of contract;

e) the characteristics of the towed objects that may affect the safety of towing;

f) other circumstances that the parties consider necessary to specify.

Article 217🔗

1. For the purpose of performing the works provided for by the towing contract, the parties shall be obliged to promptly bring the vessel or other floating object into proper condition.

2. The owner of the vessel and/or tug shall not be liable for defects of his vessel and/or tug if he proves that their detection was impossible even in the case of exercising due care (latent defect).

Article 218🔗

During towing, in case of damage to the towed vessel or other floating object or to property and cargo on them, when the captain of the tug vessel operates the towed vessel or other floating object, liability shall be borne by the owner of the tug vessel, unless otherwise agreed between the parties, and provided that the owner cannot prove his innocence.

Article 219🔗

During towing, in case of damage to the tug vessel or property and cargo on it, when the towing operations are directed by the captain of the towed vessel or other floating object, liability shall be borne by the owner of the towed vessel or other floating object, unless otherwise agreed between the parties, and provided that the owner cannot prove his innocence.

Article 220🔗

The owner of the tug shall not be liable for damage to the towed vessel or other floating object or to property and cargo on them, if the towing takes place in ice conditions and it is not proved that the damage was caused by the fault of the tug vessel.

Article 221🔗

Under the maritime towing contract, the owner of the tug shall be liable from the moment the vessel or other floating object is taken in tow at the initial point and shall be released by placing the towed vessel or other floating object at the berth or anchoring at the final point of towing.

Article 222🔗

Maritime towing, as a rule, shall be directed by the captain of the tug vessel, who shall not have the right to interfere in the internal rules of the towed vessel or other floating object.

Article 223🔗

If the shipowner has assigned the direction of towing to a person who is not the captain of the tug, then the legal relations of this person with the captains of the tug vessel and the towed vessel or other floating object shall be determined by the maritime towing contract.

Article 224🔗

In the event of the unpreparedness of a ship or other floating object for towing within the period specified by the contract, after the tug's appearance at the point of departure, the owner of the tug has the right to cancel the contract and to have the owner of the towed object compensate the expenses incurred for the towing vessel's passage from the point of departure to the point of destination, as well as for return to the base point (or another point, not the farthest base port), and also to recover possible income (lost profit).

Article 225🔗

In the event of the tug's entry into the port of departure in an unseaworthy condition or in a condition unprepared for towing, the owner of the towed ship or other floating object is entitled to terminate the contract and to impose on the owner of the tug compensation for the expenses incurred by him and for possible income.

Article 226🔗

Towing by ships flying the state flag of Georgia between Georgian ports, as well as to or from ports of foreign countries, shall be regulated by this Code.

Law of Georgia of 11 December 2015 No. 4622 - website, 23 December 2015.

Article 227🔗

If the towed ship or other floating object, for reasons independent of the towing vessel, finds itself in a state of maritime incident, the captain of the towing vessel is obliged to provide the towed ship or other floating object with salvage equipment and to render it the necessary assistance until the affected party no longer needs rescue force. In this case, the towing vessel shall be compensated only for actual expenses, without salvage remuneration.

Article 228🔗

1. Under a port towing contract, the owner of the tug, for a remuneration fee, brings in or takes out a ship or other floating object into or from port waters, performs maneuvering of the towed ship in port waters, mooring of the ship with a cable, and other operations.

2. The captain's application constitutes evidence of the conclusion of a port towing contract.

Article 229🔗

1. Port towing is managed by the captain of the towed ship or other floating object, unless otherwise provided by the contract.

2. The assignment of the management of towing to the captain of the towing vessel may be made only by a contract concluded in writing.

Article 230🔗

1. To ensure navigation safety, the necessity of using a tug for entering, leaving and moving within the water area of a sea port, for maneuvering, mooring of a ship with a cable and performing other operations shall be determined by port rules.

2. A ship with a gross tonnage of 500 tons or less is exempt from the use of a tug, unless the ship's captain requires its use.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14 July 2008, Art. 91

Article 231🔗

Under a contract of marine insurance, the insurer, upon receipt of the appropriate remuneration (insurance premium), undertakes the obligation, in the event of the danger or occurrence specified in the contract (insured event), to compensate the damage to the insured or another person in whose favor the contract has been concluded.

Article 232🔗

A marine insurance contract shall be concluded in writing.

Article 233🔗

1. The following rules set out in this Chapter shall apply in cases where the parties have not agreed otherwise.

2. An agreement contrary to the cases directly specified in this Chapter shall be void.

Article 234🔗

1. The object of marine insurance may be any pecuniary interest connected with navigation, such as, for example, a ship (including one under construction), cargo, freight, passage money, hire, profit, as well as other claims secured by a ship, cargo or freight, wages or other remuneration of the master and crew members, the pecuniary or civil liability of the shipowner and the carrier of cargo, as well as the risk assumed by the insurer (reinsurance).

2. The object of insurance shall be specified in the marine insurance contract.

Article 235🔗

1. When concluding the contract, the insured shall provide the insurer with all information known to him that is necessary for determining the degree of risk of the circumstances, or information that he ought to have known, as well as other information in accordance with the insurer's requests.

2. The insured shall be released from the obligation to provide the insurer with generally known information and information that is known to the insurer or ought to have been known to it.

3. In the event of the insured's failure to provide proper information or provision of incorrect information, the insurer shall have the right to refuse the contract.

Article 236🔗

The insurer shall, upon request, deliver to the insured its signed document reflecting the terms of marine insurance (policy, insurance certificate and a.y.).

Article 237🔗

The insured shall pay the insurance premium to the insurer within the agreed period. Before payment of the insurance premium, the marine insurance contract shall not enter into force, unless otherwise provided by the contract.

Article 238🔗

The insured may conclude a marine insurance contract in his own favour or in favour of another person, who may or may not be specified in the contract.

Article 239🔗

If a marine insurance contract is concluded in favour of another person, the insured shall be obliged to perform all contractual obligations. The person in whose favour the contract was concluded shall also be obliged, if it was concluded on his instruction or even without instruction, if he subsequently consented to the insurance.

Article 240🔗

When concluding a contract in favour of another person, the insured shall enjoy all rights conferred by the insurance contract without obtaining the relevant power of attorney from that person.

Article 241🔗

When paying the insurance indemnity, the insurer shall have the right to request presentation of the policy or other insurance documents issued by it at the time of insurance.

Article 242🔗

1. In the event of alienation of insured cargo, the insurance contract remains in force. All rights and obligations of the insured pass to the buyer of the cargo.

2. If, before the alienation of the cargo, the insurance premium had not been paid, the obligation to pay it is borne both by the insured and by the person who acquired the cargo. At the same time, if the non-payment of the premium is not noted in the policy or other insurance document, a claim for payment of the premium against its holder is void.

Article 243🔗

1. Upon alienation of an insured ship, the maritime insurance contract is terminated from the moment of alienation. An exception is the alienation of a ship during a voyage. In this case the contract retains force until the end of the voyage, and all rights and obligations of the insured pass to the acquirer of the ship.

2. This article applies also in the case of insurance of the shipowner's liability.

Article 244🔗

1. When concluding a maritime insurance contract, the insured is obliged to state the amount with which he insures the relevant interest (insured amount).

2. If the insured amount is less than the true value of the insured interest (insurable value), the insurer is liable for the damage in proportion to the ratio of the insured amount to the insurable value.

3. If the insured amount indicated in the maritime insurance contract exceeds the insurable value, the contract is considered invalid in that part of the insured amount which exceeds the insurable value.

Article 245🔗

If the interest is insured with several insurers for an amount which in total exceeds the insurable value, each insurer is liable only within the limits of the insurable value, and each of them is liable in proportion to the insured amount determined by the maritime insurance contract.

Article 246🔗

1. The maritime insurance contract remains in force also if, at the moment of conclusion of the contract, the risk of occurrence of damage necessarily subject to compensation no longer exists or the damage has already occurred.

2. If, at the conclusion of the maritime insurance contract, the insurer knew or should have known that the possibility of occurrence of an insured event is excluded, or if the insured knew or should have known about damage that has already occurred, then for the party which did not know this, performance of the claims of the insurance contract is not obligatory.

3. The insurer is entitled to the insurance premium also if performance of the maritime insurance contract does not constitute an obligation for him.

Article 247🔗

By special agreement (general policy), all cargo which the insured receives or sends over a certain period of time may be insured.

Article 248🔗

1. The policyholder shall, immediately upon receipt of the notice of dispatch of each cargo covered by the general policy, immediately provide the insurer with all necessary information, namely:

a) the name of the vessel carrying the cargo;

b) the route of carriage of the cargo;

c) the insured amount.

2. The policyholder shall not be released from the obligation referred to in paragraph 1 of this Article even where it receives notice that the cargo arrived at its destination undamaged.

3. Where the policyholder fails to provide the insurer with the necessary information or provides it late, the insurer shall be entitled to refuse compensation for the damage related to the relevant cargo. At the same time, the insurer retains the right to the insurance premium that it would have received, if the policyholder fails to prove that the failure to provide or the late provision of the information was not an intentional act on its part.

4. If the policyholder intentionally delayed the provision of the required information, failed to provide it at all, or knowingly provided false data about the cargo and the insured amount, the insurer shall be entitled to refuse insurance under the general policy. At the same time, the insurer retains the right to the insurance premium that it would have received had the policyholder performed the terms of the insurance contract in good faith and in full.

Article 249🔗

1. The insurer shall, at the request of the policyholder, issue a policy or an insurance certificate for each individual dispatch of cargo covered by the general policy.

2. Where the content of the policy or the insurance certificate is inconsistent with the content of the general policy, the policy and the insurance certificate shall prevail.

Article 250🔗

The insurer shall not be liable for damage caused by the gross negligence or intentional act of the policyholder, the consignor, the consignee or their representative.

Article 251🔗

1. When insuring a vessel, the insurer, except in the cases referred to in Article 250 of this Code, shall not be liable for damage caused as a result of sending a vessel in an unseaworthy condition on a voyage, if that condition was not the result of a latent defect.

2. The insurer shall also not be liable for damage caused by the age of the vessel and its equipment, natural wear and tear, as well as by explosive and self-igniting substances, if such substances were loaded with the permission of the policyholder or its representative without agreement with the insurer.

Article 252🔗

When insuring cargo or expected profit, except in the cases referred to in Article 250 of the Code, the insurer shall not be liable for damage arising from the natural properties of the cargo itself (internal spoilage, shrinkage, rusting, mould, breakage or leakage, self-ignition, etc.) and for damage caused by improper packing.

Article 253🔗

In the case of freight insurance, Articles 250, 251 and 252 of this Code shall apply.

Article 254🔗

The insurer shall not be liable for damage caused by radiation or radioactive damage during a nuclear explosion, unless otherwise provided by agreement.

Article 255🔗

The insurer shall not be liable for damage caused by the seizure of the ship through military action or military measures, by pirate attack, civil commotion, strike, as well as by confiscation, requisition or arrest of the cargo or ship, or by the destruction of the ship and cargo, by order of the military or civil authority.

Article 256🔗

1. The policyholder shall be obliged to notify the insurer immediately of all significant changes related to the object of insurance (overloading, change of the means of cargo transportation, of the unloading port, of the agreed or customary route, leaving the ship for wintering, and a.y.).

2. In the event of an increase of danger to the object to be insured, if this is not connected with the saving of people, the ship or the cargo, the insurer shall be entitled to revise the terms of the contract and to demand an additional premium. If the policyholder does not agree to this, the marine insurance contract shall be terminated immediately upon the occurrence of the said change.

Article 257🔗

1. The policyholder shall be obliged, upon the occurrence of the insured event, to take all measures dependent on him to prevent and reduce the causes causing the damage, to notify the insurer immediately of the occurrence of the insured event and, if he has received instructions from the insurer, to comply with them.

2. If the policyholder, through gross negligence or intentional act, has not taken measures to prevent and reduce the damage, the insurer shall be released from liability for compensation of the damage incurred.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Article 258🔗

At the request of the policyholder, the insurer shall be obliged, within the insured sum, to provide security for the payment of the general average contribution.

Article 259🔗

When drawing up the general average statement, the policyholder shall be obliged to protect the interests of the insurer.

Article 260🔗

1. Upon the occurrence of the insured event, the insurer shall have the right to be released from the obligation imposed by the marine insurance contract by paying the full insured sum. He shall be obliged to notify the policyholder of his wish to exercise this right within seven days from the receipt by the latter of the notice of the insured event, and shall also be obliged to reimburse the expenses incurred by the policyholder before the receipt of the said notice for the purpose of reducing and preventing the damage.

2. In the case provided for by this Article, by paying the insured sum the insurer shall not acquire rights to the insured property.

Article 261🔗

1. The insurer shall be obliged to reimburse the policyholder for the expenses incurred to reduce or prevent the damage for which the insurer is liable, as well as the expenses incurred to comply with the insurer's instructions, to ascertain and determine the amount of the damage which must be compensated by the insurer, and also for drawing up the general average statement.

2. The reimbursement of the expenses indicated in this Article shall be effected in proportion to the ratio of the insured sum to the insured value.

Article 262🔗

1. The insurer shall be liable for damage only within the insured sum. At the same time, the insurer shall reimburse the expenses specified in Article 261 of this Code and the general average contribution, regardless of whether the above amount and damage together exceed the insured sum.

2. The insurer shall also be liable for damage caused by several successive insured events, even if their total amount exceeds the insured sum.

Article 263🔗

Upon payment of the full insured sum, except for the case provided for by Article 260 of the Code, the following shall pass to the insurer with its consent:

a) in case of insurance at full value – all rights to the insured property;

b) in case of insurance at incomplete value – the right to a part of the insured property, in proportion to the ratio of the insured sum to the insured value.

Article 264🔗

1. In case of the missing without trace of a ship, the insurer shall be liable in the amount of the full insured sum.

2. A ship shall be considered missing without trace if no information about it exists for three months, and if the receipt of information was prevented by ongoing military operations, this period shall be extended to six months.

3. If a ship is insured for a certain period, under a contract of marine insurance, the insurer shall be liable for the missing without trace of the ship if the last information about the ship was received before the expiry of the contract and if the insurer cannot prove that the ship was lost after the expiry of the period.

Article 265🔗

1. The policyholder may renounce in favour of the insurer his right to the insured property (abandonment) and demand from it the full insured sum if:

a) the ship has gone missing without trace;

b) the restoration or repair of the insured ship is economically inexpedient (total constructive loss);

c) the elimination of the cause of damage to the insured cargo or its delivery to the place of destination is economically inexpedient;

d) the ship or cargo is seized, and both are insured against the said risk, and the violence continues for two months.

2. Abandonment of a ship in state ownership may be effected only in accordance with Article 42 of this Code.

3. An agreement of the parties that contradicts this Article shall be void.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 266🔗

1. The policyholder shall declare the abandonment within six months from the moment of expiry of the period specified in Articles 264 and 265 of the Code (the beginning of the circumstances).

2. After the expiry of six months, the policyholder loses the right of abandonment, but may demand compensation for damage on a general basis.

3. The declaration of abandonment by the policyholder may not be conditional, and subsequent renunciation thereof shall not be permitted.

4. An agreement of the parties that contradicts this Article shall be void.

Article 267🔗

If, after receiving compensation from the insurer, it becomes clear that the ship was not lost or the seized ship and cargo were released, the insurer may recover from the insured, by leaving the property to him, the insurance compensation less the damage, if the policyholder has suffered such damage.

Article 268🔗

1. An insurer that has paid the insurance indemnity shall, within the amount paid, be entitled to the claims that the policyholder (or another person receiving the insurance indemnity) may bring against the person liable for the damage. The insurer shall exercise this right in accordance with the rules established for the recipient of the indemnity.

2. If the policyholder refuses to exercise his rights against the person liable for the damage caused, or if the exercise of such right becomes impossible through his own fault, the insurer shall be released in whole or in the corresponding part from the insurance indemnity.

Article 269🔗

In the cases provided for by Articles 263, 265 and 268 of this Code, the policyholder shall be obliged to hand over to the insurer all documents and material evidence, and to provide the necessary information for the purpose of exercising the rights transferred to it.

Article 270🔗

If a third person has compensated the policyholder for the damage, the insurer shall pay only the difference between the amount payable under the insurance contract and the amount received from the third person.

Article 271🔗

1. General average means damage caused as a result of deliberately and knowingly incurring extraordinary expenses or sacrifice for the purpose of saving the ship, freight and cargo in common peril.

2. General average shall be apportioned between the ship, freight and cargo according to their value at the place and time of completion of this voyage.

3. In this Chapter, freight also means the cost of carriage of passengers and their luggage.

Article 272🔗

Articles 273–283 of this Code shall apply only in cases where otherwise is not provided by agreement of the parties.

Article 273🔗

The following shall be attributed to general average if the features listed in Article 271 are present:

a) damage caused by the jettisoning overboard of cargo or ship's equipment, as well as damage caused to the ship or cargo during the carrying out of common salvage measures as a result of water entering the hold through hatches opened for the jettisoning of cargo or through holes made for this purpose;

b) damage to the ship and/or cargo caused by extinguishing a fire on board, including the deliberate scuttling or beaching of a ship on fire for this purpose;

c) damage caused by the deliberate stranding and refloating of the ship on a shoal, notwithstanding that the ship could also have stranded on the shoal of its own accord;

d) damage caused by damage to engines, other machinery and boilers of the ship in the attempt to refloat the ship from the shoal;

e) extraordinary expenses for the transshipment of cargo, fuel or other stores into lighters, their reloading back onto the ship, and the hire of lighters, when the ship has stranded on a shoal;

f) damage resulting from the loss of or damage to cargo, fuel or stores caused by their movement on board, discharge from the ship, reloading or stowing, as well as storage, if the expenses incurred for carrying out these operations are recognized as general average;

g) expense incurred in rendering assistance, whether under a contract or without one, to the extent that salvage operations are carried out to protect the ship, freight and cargo from danger;

h) loss of freight caused by loss of cargo – in the case where the loss of cargo is compensated under the rules for apportionment of general average, from the freight shall be deducted the expense which the carrier of the cargo would have had to incur for the purpose of earning the freight, but which, due to the sacrifice, was not incurred.

Article 274🔗

The following shall also be attributed to or equated with general average:

a) expenses incurred as a result of the forced entry of the ship into a port of refuge or return to the place of loading due to an accident, or expenses incurred due to any other special circumstance, when the necessity of such entry or return is conditioned by the common safety;

b) expenses incurred by the ship's departure from a port of refuge or the port of departure with its original cargo or part thereof, to which it was forced to return;

c) expenses related to the movement of cargo, fuel or stores in the ports of entry and departure or in a port of refuge, incurred for the purpose of common safety or for the repair of the returned ship, where such repair was caused by an accident or other special circumstance, if such repair was necessary for the safe continuation of the voyage;

d) storage expenses incurred, including justified insurance, for the reloading and stowing of fuel, cargo or stores unloaded and moved under the circumstances referred to in subparagraph „c“ of this Article, – if the ship is considered unseaworthy or if it did not continue the voyage commenced. Storage expenses shall be considered general average until the date of recognition of the ship as unseaworthy, abandonment of the voyage or completion of discharge of cargo, – if the ship is considered unseaworthy or refused to continue the voyage before that date;

e) expenses incurred for wages, maintenance of the ship's crew, fuel and stores in connection with the continuation of the voyage as a result of the ship's entry into a port of refuge or return to a port under the circumstances referred to in subparagraphs „a“ and „c“ of this Article, – if the ship is considered unseaworthy or if it did not continue the voyage commenced; the said expenses shall be considered general average until the date of recognition of the ship as unseaworthy, abandonment of the voyage or completion of discharge of cargo, – if the ship is considered unseaworthy or refused to continue the voyage before that date;

f) the repair of the ship damaged as a result of an accident or any other special circumstance arising from the interests of common safety, or due to such circumstances, if such repair is necessary for the safe continuation of the voyage; expenses connected with the detention of the ship at any place, expenses incurred for wages and maintenance of the crew, port charges, fuel and stores, arising from the detention, shall be reimbursed in accordance with the rules for the adjustment of general average, excluding expenses arising from repairs not attributable to general average;

g) temporary repairs of the ship carried out for the common safety at the place of loading, entry or refuge, as well as temporary repairs of damages included in general average. At the same time, reimbursement of the cost of temporary repairs of accidental damages, which were necessary only for the completion of the said voyage, shall be made only within the limits of the expenses avoided which would have been attributed to general average if the said repairs had not been carried out;

h) all extraordinary expenses which were incurred in place of other expenses and which could be attributed to general average. At the same time, their reimbursement shall be effected only within the limits of the avoided expense, from any of the participants in the general average, without regard to the saving obtained as a result of such expense.

Article 275🔗

Damage which is not covered by Articles 271, 273 and 274 of the Code shall be attributed to particular average. Such damage shall not be distributed between the ship, the cargo and the freight. It shall be compensated by the person who suffered the damage, or by the person who is liable for causing the damage.

Article 276🔗

Notwithstanding the presence of the features listed in Article 271, the following shall not be considered general average:

a) the value of spontaneously combustible cargo which is burning, jettisoned overboard, and of such cargo as is carried by the ship contrary to the rules and customs of merchant shipping;

b) any damage caused by smoke or heat in extinguishing a fire on board the ship;

c) damage caused, for the purpose of saving from a common danger, by cutting away parts or wreckage of the ship before sacrifices are made, which have been carried away or lost as a result of an accident;

d) expenses incurred in the ports of departure and entry or in a place of refuge for the shifting or discharging of cargo, fuel or stores, where the damage to the ship was discovered in the port of entry or departure and during the voyage no accident or other extraordinary circumstance connected with such damage occurred, and also where the expense was incurred in the course of the voyage for the shifting or heaping of cargo solely for the purpose of its re-stowage, if such re-stowage does not constitute a necessity for common safety;

e) expenses incurred during the period of repair for wages or for the maintenance of the ship's crew, for fuel and stores, even where the repair is necessary for the safe continuation of the voyage and where the damage was discovered in the port of departure or entry, only on condition that during the voyage no accident or other extraordinary circumstance connected with such damage occurred;

f) any damage or loss suffered by the ship or cargo as a result of an increase in the duration of the voyage (damage due to delay, change in price and a.y.).

Article 277🔗

General average shall be distributed in accordance with the rules set out in Article 271 of the Code even where the danger giving rise to extraordinary expenses or sacrifice arose through the fault of a person having a proprietary interest in the ship, the freight or the cargo. At the same time, such distribution does not deprive the other participants in the general average of the right to recover from the liable person the damage caused, just as in this case that person is not deprived of the possible means of defence.

Article 278🔗

1. Damage caused by damage to or loss of cargo received on board a ship without the permission of the shipowner or his agent, or delivered for carriage knowingly under an incorrect name, shall not be distributed in accordance with Article 271 of this Code. If the cargo survives, its owner shall be obliged to participate on a general basis in general average contributions.

2. If the value of the cargo at the time of delivery for carriage is declared as less than its true value, its owner shall participate in general average contributions in accordance with the true value of the cargo, and shall receive compensation for damage in accordance with the value declared by him.

Article 279🔗

1. The amount of damage caused by damage to the ship, its engines and equipment, which is subject to compensation under general average, shall be determined:

a) in case of repair of the ship or replacement of its parts – by the actual cost of repair or replacement;

b) in other cases – by the reduction in value caused by such damage, but not more than the estimated cost of repair.

2. If on a ship more than fifteen years old old materials or parts are replaced with new ones, – from the cost of repair recognized as general average, one third shall be deducted for "new for old".

3. In case of actual or total constructive loss of the ship, – the amount compensable under general average shall be the difference between the value of the undamaged ship less the cost required to repair the damage not attributable to general average, and the value of the damaged ship, which may be determined by the net proceeds from the sale if the ship is sold.

Article 280🔗

1. Damage caused by damage to or loss of cargo, which is compensated under general average, shall be determined by the price specified in the invoice presented to the consignee at the time of unloading, and in the absence of an invoice – in accordance with the price of the cargo at the place of production. The value at the time of unloading includes the cost of insurance and freight, except in cases where the freight, apart from the cargo, is at the risk of other interests.

2. In case of sale of damaged cargo, the compensable damage shall be determined by the difference between the value of the ship before damage and the net proceeds received as a result of the sale.

Article 281🔗

To the amount of expenses compensable in general average, except for the maintenance and wages of the crew during the voyage, as well as fuel and supply items that were not replaced during the voyage, two percent shall be added in favour of the party incurring the expense.

Article 282🔗

To the amount of expenses incurred and other amounts that are compensated under general average, annual seven percent shall be added from the moment the expense is incurred until the completion of the drawing up of the average adjustment. If any amount is paid before the completion of the drawing up of the average adjustment under the general average rules for compensation of expenses and damage, then interest shall be added to the amount paid up to and including the day of its payment.

Article 283🔗

1. Under the rules of general average, contributory contributions shall be made from the net value of the property as at the moment of completion of the voyage, except for cargo contributions, which shall be determined as at the moment of discharge from the value of the cargo according to the account submitted by the consignee, and in the absence of an account — according to the price of the cargo at the place of production. The value as at the moment of discharge shall include the cost of insurance and freight, except where the freight is at the risk of interests distinct from the cargo. In such conditions, the value of the loss and damage existing as at the moment of discharge shall be deducted from the value of the cargo.

2. The value of the ship shall be determined without taking into account the positive or negative effect of a demise or time charter.

3. To the value of the ship shall be added the amount which takes into account the compensation for property sacrificed by general average, if it had not been taken into account previously. At the same time, from the amount of freight or the carriage charge which is at the risk of the shipowner shall be deducted the wages and the crew maintenance expenses which would not have been paid if the ship and the cargo had perished entirely in the conditions which gave rise to the general average and it had not been attributed to general average.

4. From the value of the property shall be deducted all additional expenses incurred in respect of that property after the general average, except for those expenses which are attributed to general average.

5. The property and luggage of passengers in respect of which no bill of lading was issued shall not be included in the contributions to general average.

Article 284🔗

The average adjuster shall determine the general average and, on the basis of the application of the interested persons, shall calculate its apportionment; the average adjuster shall be appointed by the shipowner from among the persons employed by marine surveying companies registered in Georgia. The average adjuster must have appropriate knowledge and experience in the field of private maritime law and merchant shipping.

Article 285🔗

1. The party requesting the apportionment of general average shall prove that the declared loss or expenses were indeed recognised as general average.

2. All the materials on the basis of which the average statement is drawn up must be available for review. The average adjuster shall, upon request, provide the interested persons with certified copies of these materials at their own expense.

Article 286🔗

A fee shall be paid for drawing up the average statement, which shall be included in the average statement and shall be apportioned among all interested persons in proportion to their participation in the general average.

Article 287🔗

Interested persons may challenge the average statement in court within 6 months, of which the average adjuster must be notified and sent a copy of the statement of claim.

Article 288🔗

If the average statement was not challenged within the period provided for by Article 287, or was challenged but the court left it in force, its enforcement may be effected by means of a notarial enforcement inscription, for which purpose the average statement and a certificate of the average adjuster stating that the court has not annulled or altered the average statement must be submitted to a notary office.

Article 289🔗

When determining the type of average, calculating the amount of general average and drawing up the average statement, if the law is incomplete, the average adjuster shall be guided by the international customs of merchant shipping.

Article 290🔗

1. The rules of this Chapter apply in the event of collision of ships at sea or in other waters.

2. Under this Chapter, a collision of ships shall also be treated as equivalent to a case in which one ship, by performing or failing to perform a manoeuvre, or by failure to observe navigation rules, caused damage to another ship or to the persons, cargo or other property on board, even if those ships do not physically come into contact with each other.

Article 291🔗

No ship involved in a collision shall be considered at fault until its fault is proved.

Article 292🔗

If the collision is caused by the incorrect action or negligence of one of the ships, the damage shall be compensated by the party through whose fault the collision occurred.

Article 293🔗

If the collision is caused by the fault of all the ships involved in the collision, the liability of the parties shall be determined in proportion to their fault in the collision. If it is impossible to determine the degree of fault, liability shall be distributed among the parties equally.

Article 294🔗

1. If the collision occurred due to force majeure (force majeure), and also if it is impossible to determine the cause of the collision, the damage shall be compensated by the person who suffered the damage.

2. This rule applies also in the case where the ships, or at least one of them, at the moment of the collision was at anchor or was otherwise made fast.

Article 295🔗

1. In the case referred to in Article 293 of this Code, for damage caused by the death or impairment of health of a person, the shipowners shall be jointly and severally liable to a third party; at the same time, a shipowner who has paid more than he owes shall have the right to bring a recourse claim against the other shipowner.

2. All other damage caused to a third party shall be compensated in accordance with Article 293, but without joint and several liability.

Article 296🔗

The liability established by Articles 292, 293 and 295 of this Code shall apply also in the case where the collision is caused by the fault of a pilot or of the navigation control system.

Article 297🔗

1. The master of each ship involved in a collision shall be obliged, after the collision, without seriously endangering his passengers, crew and ship, to render assistance, to the extent possible, to the other ship, its crew and passengers.

2. The masters of ships shall be obliged, as far as possible, to inform each other of the name of their ship, the port of registry, and also the ports of departure and destination or the nearest port at which the ship will call.

3. For violation of the obligations provided for in this Article, the master of the ship shall be liable in accordance with the applicable legislation.

4. The shipowner shall not be liable for the failure by the master of the ship to fulfil the obligations provided for in this Article.

Article 298🔗

1. The shipowner or the person defined by Article 14 of this Code shall be liable for damage caused by the escape or discharge of oil from a ship or by the dumping into the sea from a ship of substances (hereinafter – polluting substance) which are harmful to human health and to the living resources of the sea. The exception is the case provided for in Article 299.

2. Loss caused by pollution of the sea is damage caused by a polluting substance outside the ship to the marine environment, the coast or any other object (ships, fishing gear and a.y.). It includes the amount spent by any person on taking any reasonable measures which could have caused or have already caused the escape or dumping of polluting substances, in order to avert or reduce damage due to pollution, as well as damage caused by the same measures.

Article 299🔗

The shipowner shall not be liable for damage caused by pollution of the sea if he proves that the pollution of the sea was caused by:

a) an exceptional, irresistible and unavoidable natural phenomenon of its own character;

b) military action, hostile action or civil commotion;

c) a third party acting or failing to act with intent to cause damage;

d) malfunction of a lighthouse or other navigational aids, caused by negligence or other unjustified act of the authorities responsible for the proper operation of these aids;

e) in the case of refusal by a port facility to accept faecal waters, garbage and other substances harmful to the environment, the emergency dumping of these substances into the water.

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022.

Article 300🔗

If the shipowner proves that the damage caused by pollution of the sea arose in part or in whole from the intentional or negligent act of another liable party and/or of the injured person, then, in accordance with the degree of fault of the liable party and/or the injured person, the amount of compensation for the damage shall be reduced for the shipowner or he shall be fully released from compensation for the damage caused.

Article 301🔗

If the damage caused by pollution of the sea arose from the escape or discharge into the sea of harmful substances from two or more ships and it is impossible to establish the share of liability of each shipowner in the offence, the shipowners shall be jointly and severally liable for the damage.

Article 302🔗

1. For damage caused by pollution of the sea as a result of leakage or discharge of harmful substances from a ship into the sea, the liability of the shipowner in respect of one and several occurrences arising from one and the same cause shall be limited to an aggregate amount of 133 units of account of the International Monetary Fund for each unit of the ship's tonnage. This aggregate amount may not exceed 14 million units of account.

2. The ship's tonnage is the ship's net tonnage plus the volume of the engine room. If, under the ordinary rules of measurement, it is impossible to determine the ship's tonnage, the ship's tonnage shall be deemed to be equal to 40 per cent of the quantity (in tonnes) of oil or other substance which the ship is capable of carrying.

Article 303🔗

In order to limit his liability for the pollution referred to in Article 302, the shipowner may, in the court or arbitration before which a claim for compensation for damage has been brought against him, constitute a fund equal to the amount of the limit of his liability. The fund shall be constituted by transfer of the amount (deposit) or by other security which the court or arbitration recognises as acceptable and sufficient.

Article 303¹🔗

Cases arising from the International Convention on Civil Liability for Bunker Oil Pollution Damage shall be examined by the common courts of Georgia.

Law of Georgia of 31 October 2018 No. 3569 – website, 20.11.2018.

Article 304🔗

1. The owner of a vessel carrying more than 2000 tonnes of oil by tanker shall secure his liability for pollution damage by insurance, bank or other guarantee.

1¹. A vessel flying the state flag of Georgia whose gross tonnage exceeds 1,000 register tonnes shall, in order to secure insurance of liability for damage caused by bunker fuel pollution, have appropriate insurance or an unconditional and irrevocable bank guarantee, which the shipowner shall submit to the Agency. The limits of the shipowner's liability shall be determined in accordance with Article 340 of this Code.

1². For the submission to the Agency by the shipowner of the appropriate insurance or unconditional and irrevocable bank guarantee provided for by paragraph 1¹ of this Article and for determining its amount, the rule established by Article 7 of the International Convention "On Civil Liability for Bunker Oil Pollution Damage" shall apply.

2. A claim for compensation for oil pollution damage may be brought directly against the insurer or other person liable for the shipowner's liability. A person against whom such a claim is brought shall, pursuant to Articles 302 and 303 of this Code, be entitled to limit his liability and to constitute a fund equal in amount to the limit of liability itself, even where the shipowner's liability, pursuant to Article 337 of the Code, cannot be limited. In the case of such a claim, the defendant shall be entitled to invoke against the injured person the defences which the shipowner himself could have invoked, except for reliance on the shipowner's insolvency and the liquidation of his enterprise. The defendant shall also be released from liability if he proves that the damage caused by oil pollution of the sea is the result of a deliberate act of the vessel's crew itself. At the request of the defendant, the shipowner shall appear in the proceedings as a co-defendant.

3. A claim for compensation for damage, if it was not caused by an intentional act or omission or by gross negligence, may not be brought against:

a) servants and/or agents of the owner or members of the crew;

b) any person performing work on the vessel who is not a member of the crew;

c) the charterer, including the bareboat charterer and the manager of the vessel, their servants and agents;

d) salvors, their servants and agents who carried out salvage operations with the consent of the owner or on the instructions of the maritime authority.

4. The owner's right of recourse shall not be limited.

Law of Georgia of 31 October 2018 No. 3569 – website, 20.11.2018.

Article 305🔗

1. A vessel carrying more than 2000 tonnes of oil shall have an appropriate valid certificate confirming the security for the shipowner's liability for pollution of the sea by oil, in compliance with the requirements of Article 304 of this Code.

2. The conditions and rules for the issuance, verification and recognition of the certificate referred to in the first paragraph of this Article shall be established by the Agency.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Article 306🔗

Liability for damage caused by pollution of the sea shall be determined in accordance with Articles 337, 341, 342, 343 and 348 of this Code.

Article 307🔗

The word "oil" means any persistent oil, in particular crude oil, mazut, heavy diesel fuel and lubricating oils, as well as whale and fish oil.

Article 308🔗

1. The operator of a nuclear ship shall be liable for nuclear damage caused by a nuclear incident connected with the nuclear ship, except for the cases referred to in the first paragraph of Article 310 of this Chapter.

2. Nuclear damage may be caused to a person or property by nuclear fuel having radioactive properties or radioactive and toxic, explosive and other hazardous properties, by radioactive products or other waste of a nuclear ship, as well as by expenses incurred for the purpose of preventing damage or reducing its amount.

3. If, along with nuclear damage, other damage is caused which cannot be separated from the nuclear damage, the damage caused shall be considered entirely as nuclear damage.

4. Damage caused to the nuclear ship itself, its equipment, nuclear fuel, fuel and food supplies shall not be considered nuclear damage.

5. A nuclear incident means an occurrence or occurrences caused by the same cause which have caused damage according to the characteristics referred to in the second and third paragraphs of this Article.

Article 309🔗

1. Except for the cases provided for by Article 314, the operator of the nuclear ship shall be directly liable for nuclear damage.

2. The operator of a nuclear ship means a natural or legal person to whom the right to operate the ship has been granted by the State of the ship's flag, or who directly operates the ship.

Article 310🔗

1. The operator of a nuclear ship shall be obliged to compensate nuclear damage if it cannot prove that the damage was caused as a result of a military action, a hostile action, civil commotion or force majeure.

2. If the operator proves that the nuclear damage was caused wholly or partly by the intentional act of the victim himself, it shall be wholly or partly released from liability towards the victim.

Article 311🔗

1. The operator of a nuclear ship who has compensated nuclear damage shall have the right to bring a recourse claim against:

a) a person who intentionally caused the nuclear damage;

b) a person who, without the permission of the operator or of the flag State of the ship, carried out the raising of a sunken nuclear ship, if the damage is the result of his action.

2. A recourse claim may also be brought against a person who, by agreement with the operator of the nuclear ship, has assumed the compensation of nuclear damage. In the case provided for by this Article, a recourse claim may also be brought against the person who compensated the damage on the basis of Article 317 of this Code.

Article 312🔗

1. The liability of the operator of a nuclear ship for nuclear damage caused by a single nuclear incident connected with that ship shall be limited to 81.97 million units of account of the International Monetary Fund, including court costs.

2. If, as a result of a nuclear incident, a claim is brought for the compensation of damage caused to a natural person or to property, then one part of the amount established in paragraph 1 of this Article — in the amount of 57.38 million units of account — shall be designated solely and exclusively for the compensation of damage caused to a natural person, and the other — in the amount of 24.59 million units of account — for the compensation of claims for damage caused to property.

3. If the first part of the said amount proves insufficient for the compensation of claims for damage caused to a natural person, then the remaining amount shall be paid from the second part of the amount, in proportion, together with the claims for compensation of damage caused to property.

4. The amount provided for the compensation of claims shall be distributed among the claimants in proportion to the approved amount of their claims.

Article 313🔗

1. If nuclear damage is caused by several operators of nuclear ships, they shall be jointly and severally liable. At the same time, the liability of the operator of the nuclear ship against whom a claim has been brought to compensate the nuclear damage in full shall not exceed the limit established in paragraph 1 of Article 312.

2. The operator of a nuclear ship who has compensated the damage in accordance with paragraph 1 of this Article shall have the right to demand from the operators of other nuclear ships compensation in proportion to the damage caused by each of them, and if this is impossible — in equal shares.

Article 314🔗

If, when nuclear damage is caused by a nuclear ship, at the moment of the nuclear incident the ship does not have a permit issued by the flag State of the ship, liability shall be borne by the owner of the ship. In this case, the liability of the operator of the nuclear ship provided for by Article 312 of the Code shall not be limited.

Article 315🔗

1. If, in the event of a nuclear incident, a worker is injured in the performance of his labour (official) duty, then liability shall be borne by the operator of the ship. The operator of the ship shall also be obliged to pay the insurance contribution to the injured person.

2. If the injured person receives assistance or a pension under special insurance, then compensation shall be made in accordance with the legislation of Georgia.

Article 316🔗

1. A nuclear ship shall have an appropriate valid certificate confirming the securing of the ship operator's liability in the event of a nuclear accident in accordance with Article 312 of this Code.

2. The conditions and rules for the issuance, verification and recognition of the certificate referred to in paragraph 1 of this Article shall be established by the Agency.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Article 317🔗

1. A claim for nuclear damage caused by a nuclear ship may be brought directly against the insurer or another person providing financial security to the nuclear ship operator.

2. When a claim is brought against the nuclear ship operator for compensation for nuclear damage, the insurer or another person providing financial security shall be entitled to take part in the court proceedings.

Article 318🔗

1. If the amount of nuclear damage exceeds the limit of liability of the nuclear ship operator determined by paragraph 1 of Article 312 of the Code, a fund shall be created in the court or arbitration, by the nuclear ship operator, the claimant or the State granting the licence for the operation of the nuclear ship, in order to ensure limited liability within that amount, by way of depositing funds (a deposit) in the court or arbitration by the operator or by submitting other security which the court or arbitration recognises as acceptable and sufficient.

2. In creating and distributing this fund, Articles 343, 344, 345 and 347 of the Code shall apply.

Article 319🔗

The liability provided for nuclear damage caused by a nuclear ship operator shall be determined by subparagraph „b“ of Article 339, and Articles 341 and 348.

Article 320🔗

A nuclear ship may enter the territorial waters and port unit of Georgia only with the permission of the Government of Georgia. Control of a nuclear ship in the territorial waters and port unit of Georgia shall be exercised by the Agency and the Ministry of Environmental Protection and Agriculture of Georgia.

Law of Georgia of 30 March 2007 No. 4598-LHG I, No. 11, 10.04.2007, Art. 102

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 11 March 2011 No. 4421 – website, 17.03.2011

Law of Georgia of 25 March 2013 No. 459 – website, 05.04.2013

Law of Georgia of 24 September 2013 No. 1286 – website, 08.10.2013

Law of Georgia of 7 December 2017 No. 1664 – website, 14.12.2017

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 321🔗

1. A salvage operation shall mean any act performed in any waters for the purpose of saving persons, a ship or other property in danger.

2. The rules of this Chapter shall also apply to a ship flying the naval flag of Georgia.

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Article 322🔗

1. Any act with a positive result performed for the salvage of a ship in danger, the persons on board it, cargo and other things, as well as freight, for the preservation of the remuneration for the carriage of passengers, the carriage of luggage or other property, and also for the prevention of environmental pollution, gives the right to receive a fair reward.

2. A reward shall not be granted if the act has not produced a positive result.

Article 323🔗

The following shall not be rewarded:

a) salvage service rendered to a ship in danger despite the direct and reasonable prohibition of such service by its master;

b) a salvage operation arising from a maritime towage contract.

Article 324🔗

1. Rescued persons shall not be obliged to pay a monetary reward for their rescue.

2. Persons who rescue persons shall have the right to receive, equally with persons who salvage property, a fair share of the reward established for the salvage of property, if the rescue of persons and property occurred during the same incident.

Article 325🔗

A reward shall also be granted when the ship performing salvage operations belongs to the owner of the salvaged ship.

Article 326🔗

1. The amount of the reward shall be determined by agreement of the parties, and in case of disagreement – by a court or arbitration.

2. Any agreement concerning salvage concluded at the time of danger and under its influence may, at the request of one of the parties, be declared invalid or amended by a court and arbitration, if the court or arbitration recognizes that the terms of the agreement are unfair.

Article 327🔗

A reward for salvage includes:

a) remuneration for the services of the salvor;

b) expenses incurred for the salvage;

c) compensation for the preservation of the salvaged property;

d) special compensation, if the salvor prevented or minimized environmental pollution.

Article 328🔗

1. In case of disagreement between the parties, the amount of the reward shall be determined by a court or arbitration taking into account the following criteria, notwithstanding the sequence presented below:

a) the degree of success achieved by the salvor;

b) the value of the salvaged ship and other property;

c) the danger experienced by the salvaged ship, its crew, passengers and cargo;

d) the efforts and skill of the salvors in saving the ship, persons and other property;

e) the time spent, expenses incurred and losses suffered by the salvor;

f) the possible liability of the salvor towards third parties;

g) the risk of liability and other risks incurred by the salvors and their property;

h) the value of the salvors' property that was exposed to danger;

i) the special purpose of the salvage ship;

j) the efforts of the salvors to prevent or minimize environmental pollution.

2. Payment of the established reward shall be made in proportion to the salvaged value of all interests (the ship or other salvaged property).

Article 329🔗

The amount of the reward may be reduced or the salvors may be refused it, if the necessity of the salvage was caused by their own fault, or they committed theft, misappropriation of property, or performed an act negligently, which further aggravated the consequences of the operation.

Article 330🔗

1. In order to prevent or minimise environmental pollution, the shipowner shall pay the salvor special compensation in addition to the expenses incurred by the salvor, of not more than 30 per cent of those expenses.

2. If a court or arbitration, taking into account the circumstances of the case and Articles 328–329 of this Code, considers it fair, it may decide that the special compensation be increased up to 100 per cent of the expenses incurred by the salvor.

Article 331🔗

The salvage reward shall not exceed the value of the salvaged property.

Article 332🔗

The value of the salvaged property shall be deemed to be the amount of its appraisal, and if the property was sold – the amount obtained from its sale, and in both cases the said amount shall be reduced by the duty and fee, as well as the costs of loading and storage, appraisal and sale of the property.

Article 333🔗

Among several salvors the reward shall be distributed in accordance with their agreement, and if there is no agreement, the distribution shall be made by a decision of a court or arbitration, in accordance with Articles 328–329.

Article 334🔗

Between the shipowner, the crew members and other persons the reward shall be distributed in accordance with each of their shares in the results of the salvage and by mutual agreement of the parties, and if there is no agreement, the issue of distribution of the reward shall be decided by a court or arbitration.

Article 335🔗

Salvors shall be rewarded in the currency received for the salvage.

Article 336. (removed)🔗

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 337🔗

1. The shipowner's liability for claims arising regardless of their legal basis shall be determined in accordance with Article 340 of this Code. These are:

a) claims related to loss or damage to property (including damage to port structures, water basins, navigable routes, navigational facilities) occurring on board the ship or directly connected with its operation or a salvage operation;

b) claims related to removal, destruction or rendering harmless of cargo on board the ship;

c) damage caused by delay in the carriage of cargo by sea, the carriage of passengers and their luggage;

d) damage caused by any violation of rights not provided for by contract, directly connected with the operation of the ship or salvage operations;

e) claims related to the raising, removal, destruction and rendering harmless of a sunken, wrecked, stranded or abandoned ship;

f) damage caused to persons or property not on board the ship as a result of the navigation or operation of the ship.

2. If the damage referred to in subparagraph "f" of the first paragraph of this Article was caused by a person not on board the ship, then the shipowner liable for the act and negligence of this person may limit his liability, if the said act or liability was connected with the navigation or management of the ship or with the loading, carriage or unloading of cargo, luggage or hand luggage, or with the embarkation or disembarkation of passengers.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 338🔗

The shipowner's liability shall not be limited if it is proved that the damage was caused by his personal act or negligence committed with intent to cause such damage or with conscious disregard of the possibility of causing damage.

Article 339🔗

Limitation of liability under Article 337 of this Code shall not apply to:

a) claims arising from salvage or contribution in general average;

b) claims of the crew and other members serving the shipowner whose duty is connected with the ship, as well as claims of heirs or citizens who have the right to receive assistance, if, under the legislation regulating the relations of these persons with the shipowner, their liability for these claims is not limited or does not exceed the limit provided for by Article 331;

c) claims for the raising or removal of sunken property;

d) claims for pollution of the environment by various harmful substances and oil creating a threat to the life of humans or living marine resources, where liability for such damage is determined in accordance with Chapter XVIII of the Code;

e) claims for compensation for nuclear damage, liability for which is determined in accordance with Chapter XIX of the Code.

Article 340🔗

1. The limits of liability for the claims referred to in Article 337 of this Code and arising from one and the same occurrence are:

a) in respect of claims caused by death or injury:

333,000 units of account – for a ship of a total tonnage not exceeding 500 tonnes;

if the ship has a tonnage exceeding 500 tonnes, the following is added to this amount:

from 501 to 3,000 – 500 units of account per tonne;

from 3,001 to 30,000 – 333 units of account per tonne;

from 30,001 to 70,000 – 250 units of account per tonne;

above 70,000 tonnes – 167 units of account per tonne;

b) in respect of any other claims:

167,000 units of account – for a ship of a total tonnage not exceeding 500 tonnes;

if the ship has a tonnage exceeding 500 tonnes, the following is added to this amount:

from 501 to 30,000 – 167 units of account per tonne;

from 30,001 to 70,000 – 125 units of account per tonne;

above 70,000 tonnes – 83 units of account per tonne.

2. Where an occurrence has given rise to the claims specified in paragraph 1 of this Article, if the amount specified in subparagraph „a“ of paragraph 1 of this Article proves insufficient to pay the claim for compensation for damage caused to a natural person, then the uncompensated part of such claims shall be covered proportionally from the amount shown in subparagraph „b“ of paragraph 1 of this Article, together with other claims.

3. A claim for compensation for damage caused to a natural person shall be classified as a claim arising from the consequences of death or impairment of human health.

4. For the purpose of determining the limits of the shipowner's liability, a ship of a tonnage of less than 300 units shall be deemed to be a ship having a tonnage of 300 units.

Article 341🔗

The limits of liability provided for by Article 340 of the Code shall be taken in the aggregate with all those claims which arose from any one occurrence and were brought against one shipowner and the persons referred to in Article 347 of this Chapter.

Article 342

If a shipowner whose liability is limited on the basis of Article 337 of the Code has, arising from the same occurrence, a right of counterclaim, his liability shall be limited only to the difference resulting from the set-off of the amounts of the mutual claims.

Article 343🔗

1. In order to secure its liability, the shipowner shall have the right to constitute a fund in the court or other competent authority in which a claim has been brought against it. At the same time, the system of financial guarantees arising from the Maritime Labour Convention of the International Labour Organization of 23 February 2006 (MLC 2006), in accordance with Standard A2.5.2 of that Convention, shall ensure direct access, adequate coverage and urgent financial assistance for an abandoned seafarer on board a ship flying the flag of Georgia.

2. The fund shall be constituted in the amount not exceeding the limits of the shipowner's liability. This fund shall be constituted by means of monetary contributions (deposit) or other security recognised as acceptable and sufficient in the court or other competent authority in which the fund is constituted.

Law of Georgia of 31 May 2023 No. 3043 – website, 13.06.2023.

Article 344🔗

A fund constituted in accordance with Article 343 of the Code shall be intended solely for the payment of those claims in respect of which liability may be limited.

Article 345🔗

1. In accordance with Article 343 of this Code, the court in which the fund has been constituted shall have exclusive competence to decide any question of distribution of the fund.

2. The fund shall be distributed among the creditors in proportion to their claims as established by the court.

Article 346🔗

The unit of account shall be the unit of "special drawing rights" established by the International Monetary Fund, the rate of which shall be determined by the International Monetary Fund. The amounts referred to in paragraph 1 of Article 340 of this Chapter shall be converted into the national currency of the State in whose court or arbitration the claim was heard.

Article 347🔗

If any claim by which the shipowner's liability may be limited is brought directly against a person for whose act or omission the shipowner is liable, that person shall be entitled to avail himself of all the rules limiting liability established for the shipowner, unless it is proved that that person caused the damage intentionally.

Article 348🔗

An act directed at securing limited liability, in particular the constitution of a fund or reliance on such security, shall not constitute an admission of liability.

Article 349🔗

An agreement on the reduction of the shipowner's liability provided for by the rules of this Chapter shall be void.

Article 350🔗

1. Before satisfaction of various claims, including claims secured by pledge, the first-priority claims shall be satisfied in the following sequence:

a) claims for compensation for damage caused by injury, various health damage or death arising from labour legal relations, and after their full satisfaction, social insurance claims, insofar as all these claims relate to the respective ship;

b) claims arising from nuclear damage and marine pollution;

c) claims for port dues;

d) common claim for salvage reward and general average contributions;

e) claims for compensation for damage caused by collision of ships at sea or other maritime incidents, damage to port structures, other port property, as well as damage caused by damage to navigational equipment;

f) claims arising from acts performed within the scope of the master's authority for the preservation of the ship or continuation of the voyage;

g) claims for compensation for damage related to cargo or baggage;

h) claims for freight and other amounts payable for the carriage of cargo.

2. A claim for payment for services rendered in a port unit is equated to the claims provided for by subparagraphs "g" and "h" of paragraph 1 of this article, depending on which property they are satisfied from.

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022.

Article 351🔗

The claims referred to in subparagraphs "a"–"g" of paragraph 1 of Article 350 of this Code shall be subject to preferential satisfaction, from:

a) the value of the ship;

b) freight and the remuneration for the carriage of passengers and their baggage, which is accrued for the voyage during which the principal claims arose;

c) the general average contribution that accrues to the shipowner from this ship;

d) compensation due to the shipowner for loss of freight, as well as for damage caused to the ship that has not yet been repaired;

e) the reward accruing to the shipowner for salvage of the ship before completion of the voyage, less the amount that the shipowner must pay in accordance with Article 332 of the Code.

Article 352🔗

The claims of subparagraphs "c", "d", "f" and "h" of paragraph 1 of Article 350 shall be subject to privileged satisfaction from the following sources:

a) from the value of cargo not delivered to the consignee;

b) from compensation due for damage to cargo;

c) from general average contributions due to the cargo owner.

Article 353🔗

The claims referred to in Article 350 shall be satisfied in accordance with the sequence and in proportion to the total amount of the claims within the limits of each of them. At the same time, the claims specified in subparagraphs "d" and "f" of paragraph 1 of Article 350 shall be satisfied within this sequence in inverse proportion to the time of their origin. If several claims relate to one case, their origin shall be considered simultaneous.

Article 354🔗

1. Claims relating to the last voyage shall be satisfied in priority over similar claims of the preceding voyage.

2. At the same time, the claims referred to in subparagraph „a“ of paragraph 1 of Article 350, which relate to several voyages, shall be ranked equally with similar claims of the last voyage.

Article 355🔗

The right to privileged satisfaction shall terminate one year after the submission of the claim, except for the claims indicated in subparagraph „f“ of paragraph 1 of Article 350, whose right to privileged satisfaction shall terminate after the expiry of a 6-month period from the day the claim is raised.

Article 356🔗

1. If, during the navigation or stay of a ship, an incident occurred which may be considered as a ground for bringing a pecuniary claim against the shipowner, then, for the purpose of securing evidence for the protection of the shipowner's rights and legitimate interests, the master of the ship shall declare a maritime protest in the established manner.

2. The statement of maritime protest shall describe the circumstances relating to the incident, as well as the measures taken by the master of the ship to protect the property entrusted to him.

Article 357🔗

A statement on maritime protest shall be submitted for registration for the purpose of recording:

a) in a port unit of Georgia – to the Agency, in a notarised manner;

b) in a port of a foreign country – to a consular official of Georgia or to a local competent person in accordance with the legislation of that country.

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 22 February 2011 No. 4222 – website, 10.03.2011

Law of Georgia of 12 June 2012 No. 6439 – website, 22.06.2012

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 358🔗

In a port unit of Georgia, a statement on maritime protest shall be made within 24 hours from the moment of the ship's entry into the port unit. If the incident giving rise to the necessity of making a statement on maritime protest occurred in the port unit, that statement shall be made within 24 hours from that incident.

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 359🔗

1. In the event of the impossibility of making a statement within the established time limit for protest, the reasons shall be reflected in the statement.

2. If, at the time of the incident, there are grounds for damage to the cargo on board the ship, then the statement on maritime protest shall be made before the opening of the hatches. Before the statement of maritime protest, the unloading of cargo may be carried out only in case of extreme necessity.

Article 360🔗

In order to prove the circumstances indicated in the statement on maritime protest, the master of the ship shall, not later than 7 days from the moment of the ship's entry into the port unit or from the respective incident, if it occurred in the port unit, submit, together with that statement, to a notary or another official for examination the ship's log and an extract from that log certified by the master of the ship.

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

Article 361🔗

A notary or other official, on the basis of the statement of the ship’s captain, the data of the ship’s log and the questioning of the ship’s captain, and in case of necessity, relying on the results of questioning other witnesses from among the members of the ship’s crew, draws up an act of maritime protest and certifies it with his signature and seal with coat of arms.

Article 362🔗

A declaration of maritime protest from captains of foreign ships may be received by the respective consular representations of foreign states located in Georgia, under conditions of reciprocity, or by the persons indicated in subparagraph “a” of Article 357 of the Code.

Article 363🔗

1. A circumstance that may become the basis for pecuniary liability towards the consignor, carrier and consignee, as well as the passenger carrier, must be confirmed in writing by a report or act of an independent surveyor.

2. In a foreign port, written certification of these circumstances shall be carried out in accordance with local rules.

3. A report or act must be drawn up to certify the following circumstances:

a) discrepancy between the actual name, weight, number of packages of cargo or baggage and the data entered in the transshipment documents;

b) damage to or spoilage of cargo or baggage;

c) discovery of undocumented cargo, baggage or documents not accompanied by cargo and baggage;

d) return to the carrier of stolen cargo and baggage;

4. The form of the report or act, the procedure for its drawing up, as well as the circumstances that do not require the drawing up of an act, shall be determined in accordance with the rules or recommendations adopted by the independent surveyor.

Article 364🔗

1. In the carriage of cargo by sea, before filing an action against the carrier, a claim must be brought against him.

2. A claim shall be submitted to the persons who carried out the carriage by sea during loading and unloading of the cargo, and if the cargo was not carried, the claim shall concern those organizations which, under the contract for the carriage of cargo by sea, were to carry it.

3. A claim related to the carriage of baggage may be submitted to the carrier of the cargo, to the ports of departure or destination, at the discretion of the claimant.

Article 365🔗

1. A claim related to the carriage of cargo by mixed and direct maritime traffic shall be brought to the carrier of the cargo whose means of transport carried or were to carry the cargo to the port of destination.

2. In the case where the final point of transportation is a railway or motor station or an airport, the claim shall be submitted to the respective carrier in accordance with the rules established for the relevant mode of transport.

Article 366🔗

1. The following have the right to file a claim and bring an action:

a) the consignor of the cargo in case of delayed delivery or non-delivery of the vessel;

b) in case of shortage, damage or loss of the cargo – the freight forwarder (forwarder), the consignee or the consignor, provided that he presents a bill of lading, as well as a written notice or the relevant document in accordance with the applicable rules;

c) the consignee of the cargo in case of late delivery or delay in release of the cargo, if he presents a bill of lading;

d) in case of loss or late delivery of baggage – the presenter of the baggage receipt, and in case of shortage or damage of baggage – the presenter of the written notice;

e) in case of excess carriage costs – the consignor or consignee of the cargo, if they present a bill of lading.

2. If the carriage of cargo is carried out on the basis of a sea waybill, the person filing a claim shall, instead of the bill of lading, submit the sea waybill, and in case of loss of cargo to be carried under a waybill – the receipt.

3. The absence of a written notice does not deprive the person concerned of the right to file a claim and bring an action, if it is proven that he was refused the drawing up of a written notice and that refusal was appealed.

Article 367🔗

1. The consignor may transfer the right to file a claim and bring an action to the consignee or vice versa; the consignee or consignor may transfer it to the cargo owner, a forwarding organization or insurer, authorized lawyers or agents.

2. The transfer of the right to file a claim and bring an action is confirmed by the signature of the transferor on the bill of lading, sea waybill, waybill and receipt or in writing.

Article 368🔗

1. A claim shall be filed in writing.

2. Supporting documents shall be attached to the claim. Documents for the cargo to be carried shall be submitted in the original, and in the absence of the original – in the form of a copy.

3. When submitting a claim regarding shortage, damage or spoilage of cargo, documents confirming the value of the cargo shall also be attached to the documents confirming the right to file a claim.

Article 369🔗

1. In respect of legal entities of Georgia, a two-year limitation period for an action is determined, and in respect of natural persons – a three-year period.

This period shall be counted:

a) for claims provided for by a contract of carriage of cargo – from the day of delivery of the cargo, and if the cargo has not been delivered – from the day on which it should have been delivered;

b) when claiming payment of a fine or premium arising from the carriage of cargo – from the end of the month in which the carriage began or should have begun. When claiming accrual of a fine for delay exceeding the demurrage time – from the day on which the consignor received from the carrier a copy of the demand for payment (invoice) concerning the accrual of the fine;

c) in relation to claims arising from contracts of temporary chartering of a ship (charter), bareboat charter, mortgage of a ship, maritime towage, a transaction effected by the master of a ship within the scope of the rights conferred on him by law, and pilotage services, as well as other claims provided for by Article 304 of this Code – from the day of acquiring the right of recourse;

d) (removed - 17.09.2019, No. 4944);

e) (removed - 17.09.2019, No. 4944);

f) for claims for compensation of damage caused by collision of ships – from the day of the collision;

g) for claims relating to a reward for salvage at sea – from the day of completion of the salvage operations;

h) for claims relating to a contract of marine insurance – from the day of acquiring the right of recourse.

2. The claim referred to in subparagraph "a" of paragraph 1 of this Article may be brought against the carrier during the first six months of the limitation period for an action.

3. The carrier shall be obliged to consider the claim brought and to notify the applicant of its satisfaction or rejection within three months of receipt of the claim.

4. From the day of submission of a claim to the carrier, the running of the limitation period for an action shall be suspended until receipt of a reply to the claim or until expiry of the period for receipt of a reply.

5. For a claim relating to compensation of damage caused by the death of a passenger or injury to his health, or by loss of or damage to his luggage, the issues of limitation of action shall be determined in accordance with the procedure established by the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002.

Law of Georgia of 17 September 2019 No. 4944 – website, 01.10.2019.

Article 370🔗

1. A three-year limitation period for a claim is established for claims related to compensation for damage caused by marine pollution and for nuclear damage, and if the said claims arise between legal entities of Georgia – a one-year limitation period for a claim.

2. This period shall be counted from the day when the injured person learned or should have learned about the damage or loss caused to him/her, but not later than 6 years from the day of the incident when the pollution occurred and 15 years from the day of the damage caused as a result of the incident.

3. The limitation period for a claim in respect of the right to claim compensation arising from the International Convention on Civil Liability for Bunker Oil Pollution Damage shall be determined in accordance with the procedure established by the Civil Code of Georgia. At the same time, no more than 6 years shall have elapsed since the incident causing the damage. If the incident consists of several occurrences, the 6-year period shall be counted from the day of the first occurrence.

Law of Georgia of 31 October 2018 No. 3569 – website, 20.11.2018.

Article 371🔗

Claims for which no limitation period for a claim is established by this Code shall be subject to the general period established by the civil legislation of Georgia, unless another period is established for such claims by the international treaties of Georgia.

Article 372🔗

1. The limitation period for a claim indicated in this Code shall be subject to the rules established by the civil legislation of Georgia on the termination, suspension and renewal of the limitation period for a claim.

2. If the accrual of the claim amount depends on calculations related to general average, in that case there shall be a temporary suspension of the limitation period for a claim, from the day of the adoption by the average adjuster of the statement on general average until the day of the receipt by the interested person of the average adjuster's statement.

Article 373🔗

The limitation period for a claim established for the claims listed in subparagraphs "f" and "g" of paragraph 1 of Article 369 of this Code shall be extended by three years if the ship against which these claims were brought has not entered the territorial waters of Georgia during the limitation period for a claim.

Article 374🔗

1. Upon satisfaction of the claims provided for by this Code, annual interest shall be accrued on the amount payable within the limits established by the National Bank of Georgia.

2. Interest shall be accrued from the day of the written demand for payment of the given amount until the day of its payment.

3. The rules of this Article shall not apply to a fine and premiums, as well as to claims for damage which are compensated by way of distribution of general average.

Article 374¹🔗

On a ship flying the state flag of Georgia, seafarers shall be obliged to wear the appropriate work uniform. The work uniform shall correspond to the working conditions and shall have symbols distinguishing the levels of competence of seafarers.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 374²🔗

1. Employees of the Agency shall be obliged to wear the relevant work uniform.

2. The list of those employees of the Agency who are obliged to wear the work uniform shall be determined by the Agency in agreement with the Ministry of Economy and Sustainable Development of Georgia.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 374³🔗

The main characteristics of the work uniforms referred to in Articles 374¹ and 374² of this Code shall be determined by the Agency.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 374⁴🔗

1. If a certificate was issued before the entry into force of Chapter II¹ of this Code, it shall be considered issued and valid in accordance with the provisions of the same Code, if the organisation that issued it receives recognition in accordance with the same Chapter.

2. If a certificate was issued before the entry into force of Chapter II¹ of this Code and the organisation that issued it fails to receive recognition in accordance with the same Chapter, the validity period of this certificate shall be determined by the validity period of the issued certificate.

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012.

Article 374⁵🔗

The Government of Georgia, upon the submission of the Ministry of Economy and Sustainable Development of Georgia, shall ensure, before 1 September 2023, the adoption of a normative act on the approval of the rules for the hydrographic provision of navigation.

Law of Georgia of 20 September 2022 No. 1816 – website, 30.09.2022.

Article 374⁶🔗

1. The Legal Entity of Public Law within the system of the Ministry of Economy and Sustainable Development of Georgia − the Maritime Transport Agency, shall be considered the successor of the Legal Entity of Public Law within the system of the Ministry of Economy and Sustainable Development of Georgia − the State Hydrographic Service of Georgia.

2. Legal acts adopted (issued) by the Legal Entity of Public Law within the system of the Ministry of Economy and Sustainable Development of Georgia − the State Hydrographic Service of Georgia, including concluded contracts, shall retain legal force until the adoption (issuance) of new legal acts by the relevant successor agency, including until the conclusion of new contracts.

3. Before 1 August 2025:

a) the Ministry of Economy and Sustainable Development of Georgia and the Legal Entity of Public Law within its system − the Maritime Transport Agency, shall, in accordance with the legislation of Georgia, ensure the merger of the Legal Entity of Public Law within the system of the said Ministry − the State Hydrographic Service of Georgia, with the Legal Entity of Public Law within the system of the Ministry of Economy and Sustainable Development of Georgia − the Maritime Transport Agency, and the implementation of measures related thereto;

b) the relevant agencies shall ensure that the appropriate subordinate normative acts comply with this Law.

Law of Georgia of 12 June 2025 No. 683 – website, 16.06.2025.

Article 375🔗

This Code shall enter into force from 1 July 1997.

Annex to the Maritime Code of Georgia

Maritime terms used in the Maritime Code of Georgia

Law of Georgia of 27 June 2008 No. 69-LHG I, No. 12, 14.07.2008, Art. 91

Law of Georgia of 5 June 2012 No. 6386 – website, 19.06.2012

Law of Georgia of 11 December 2015 No. 4622 – website, 23.12.2015

Law of Georgia of 10 May 2022 No. 1547 – website, 24.05.2022

1. ship – a floating means of transport for the carriage of persons and cargo.

2. barge – a floating cargo transport vehicle which moves by towing (lighter).

3. tug (tugboat) – a towing vessel.

4. tow – a ship or other floating object which is towed (moves) by means of a tug (tugboat).

5. cruise – a sea voyage.

6. freight – the hire for the carriage of cargo by ship.

7. chartering – the hire of a ship for a certain period.

8. charterer – the hirer of a ship.

9. lessor of the ship – the person letting the ship.

10. charter – a contract concluded between the shipowner and the charterer on the chartering of a ship.

11. bareboat charter – the hire of a ship without a crew.

12. time charter – the hire of a ship with a crew for a certain time.

13. voyage charter − chartering by ship for the purpose of carrying a specified quantity of cargo between pre-agreed ports.

14. ship mortgage – encumbering a ship with a mortgage in accordance with this Code.

15. operator:

a) an official who receives and communicates the dispatcher's order to the immediate executor;

b) in the case of a bareboat charter, the shipowner or charterer, any natural or legal person who is officially entrusted with the responsibility of the owner or charterer.

16. transport terminal operator – a person who, in the performance of his/her official duties, is obliged to take into his/her own disposal cargo which is the object of international carriage. A person who, in accordance with the international convention on the carriage of cargo, is a carrier shall not be considered a transport terminal operator.

17. laytime – the precisely defined clear time during which the loading or unloading of the ship must take place.

18. counter-laytime – additional time for the completion of the ship's cargo operations after the expiry of the specified time.

19. dispatch – a bonus paid by the shipowner to the cargo owner for loading or unloading the ship ahead of time.

20. demurrage – the amount of the agreed sum which the charterer pays to the shipowner for the delay of the ship according to the counter-laytime.

21. average adjustment – in the event of an accident, the calculation of the damage caused to the cargo and the ship.

22. port captain – the head of the State Supervision and Control Service of a maritime port, who is responsible for the safety of navigation in the port.

23. Pilotage service – a natural or legal person registered in the legal form provided for by the Law of Georgia "On Entrepreneurs", which carries out pilotage service through a certified pilot, in accordance with the requirements established by the Agency.

24. Pilot – a natural person certified in accordance with the legislation of Georgia, who ensures the escorting of a vessel to the approaches of the seaports of Georgia.

25. Bill of lading – a document by which the legal relationship between the carrier and the consignee of the cargo is determined and which states all the details of the cargo (sea waybill).

26. Order bill of lading – a bill of lading in which the consignee of the cargo is not indicated and only the person is indicated by whose order the cargo may be delivered.

27. Cabotage – coastal navigation between the ports of one state.

28. Disbursement account – a document by which settlement is made between the shipowner and the port unit.

29. Surveyor service – measurement of empty and loaded vessels, expert examination of their technical condition, as well as checking the quantity of cargo, its shortage and damage, etc.

30. Flag State control – control by the State whose flag the vessel flies over the crew and the company.

31. Port State control – control by a State over vessels entering its port.

32. State Register of Georgian Vessels – a database of vessels registered in Georgia.

33. Classification society – a technical supervision organization, in accordance with whose rules and under whose supervision the design, construction, etc. of vessels is carried out.

34. Direct mixed carriage – carriage of cargo by various means of transport.

35. Direct waterborne carriage – international carriage between the points of departure and destination without transshipment of cargo by means of water and sea routes (for example, from Hamburg to Poti or Batumi via the rivers Elbe and Danube and the Black Sea).

36. BIMCO – Baltic International Maritime Conference – an international organization which: unites shipowners, brokers and ship agents; creates and approves unified forms of maritime carriage, bills of lading and other maritime commercial documents. BIMCO is recognized by all arbitrations of the world. When drawing up a maritime commercial agreement, it is necessary to be guided by its documents.

37. Seaworthiness of a vessel – a set of the vessel's seaworthy qualities by which its uninterrupted and safe navigation is ensured.

38. Due diligence – ensuring the seaworthiness of the vessel, which may be defined as the carrier's competent and reasonable efforts to fulfil the necessary conditions provided for by parts "a", "b" and "c" of the first subparagraph of paragraph 3 of the Hague Rules.

39. Property sunk in the sea – lost, ownerless, abandoned property found in the sea or on the seashore, in particular, cargo washed ashore, wreckage of a perished ship floating on the sea surface, a ship, property that was transported by or by means of a ship, and other. Property that accidentally sank in the water area of a Georgian port unit during cargo operations and repair works of port infrastructure in the Georgian port unit shall not be considered property sunk in the sea.

President of Georgia Eduard Shevardnadze

Tbilisi,

15 May 1997

No. 715-IIs