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CIVIL AVIATION LAW

Category  CIVIL AVIATION Organ of Promulgation  The Standing Committee of the National People's Congress Status of Effect  In Force
Date of Promulgation  1995-10-30 Effective Date  1996-03-01  

Civil Aviation Law of the People's Republic of China



Contents
Chapter I  General Provisions
Chapter II  Nationality of Civil Aircraft
Chapter III  Rights of Civil Aircraft
Chapter IV  Airworthiness Management of Civil Aircraft
Chapter V  Airmen
Chapter VI  Civil Airport
Chapter VII  Air Navigation
Chapter VIII  Public Air Transport Enterprise.
Chapter IX  Public Air Transport
Chapter X  General Aviation
Chapter XI  Search and Rescue and Accident Investigation
Chapter XII  Liability for Damage to Third Parties on the Surface
Chapter XIII  Special Provisions Governing Foreign Civil Aircraft
Chapter XIV  Application of Law to Foreign-related Matters
Chapter XV  Legal Liability
Chapter XVI  Supplementary Provisions

(Adopted by the 16th Meeting of the Standing Committee of the Eighth

National People's Congress on October 30, 1995, promulgated by Order No.56
of the President of the People's Republic of China on October 30, 1995)
Contents

    Chapter I     General Provisions

    Chapter II    Nationality of Civil Aircraft

    Chapter III   Rights of Civil Aircraft

      Section 1   Basic Principles

      Section 2   Ownership and Mortgage of Civil Aircraft

      Section 3   Civil Aircraft Liens

      Section 4   Lease of Civil Aircraft

    Chapter IV    Airworthiness Management of Civil Aircraft

    Chapter V     Airmen

      Section 1   Basic Principles

      Section 2   Crew

    Chapter VI    Civil Airport

    Chapter VII   Air Navigation

      Section 1   Airspace Management

      Section 2   Flight Management

      Section 3   Flight Support

      Section 4   Essential Documents for Flight

    Chapter VIII  Public Air Transport Enterprise

    Chapter IX    Public Air Transport

      Section 1   Basic Principles

      Section 2   Transport Documents

      Section 3   Liability of the Carrier

      Section 4   Special Provisions  Governing Air Transport Performed

                  by Actual Carrier

    Chapter X     General Aviation

    Chapter XI    Search and Rescue and Accident Investigation

    Chapter XII   Liability for Damage to Third Parties on the Surface

    Chapter XIII  Special Provisions Governing Foreign Civil Aircraft

    Chapter XIV   Application of Law to Foreign-related Matters

    Chapter XV    Legal Liability

    Chapter XVI   Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to safeguarding the national
sovereignty of territorial airspace and the rights of civil aviation, to
ensuring the conduct of civil aviation activities in a safe and
orderly manner, to protecting the lawful rights and interests of the parties
concerned in civil aviation activities, and to promoting the development of
civil aviation industry.

    Article 2  The airspace above the land territory and territorial waters
of the People's Republic of China is the territorial airspace of the People's
Republic of China. The People's Republic of China has complete and exclusive
sovereignty over its territorial airspace.

    Article 3  The competent civil aviation authority under the State Council
exercises unified supervision and administration over civil aviation
activities in the whole country: issues regulations and decisions
concerning civil aviation activities within the scope of its authority in
accordance with laws and the decisions of the State Council.

    The regional civil aviation administrative organs set up by the competent
civil aviation authority under the State. Council supervise and administer
the civil aviation activities in their respective regions in accordance
with the authorizations of the competent civil aviation authority under
the State Council.

    Article 4  The State supports the development of civil aviation industry,
and encourages and supports the progress of scientific research and education
in the field of civil aviation and the improvement of civil
aviation science and technology.

    The State supports the development of civil aircraft manufacturing
industry so as to provide safe, advanced, economical and suitable civil
aircraft or civil aviation activities.
Chapter II  Nationality of Civil Aircraft

    Article 5  "Civil aircraft" as referred to in this Law means aircraft
other than those used in flight missions of military, customs and police
services.

    Article 6  A civil aircraft performed its nationality registration with
the competent civil aviation authority under the State Council of
the People's Republic of China according to law has the nationality of the
People's Republic of China, and shall be issued a nationality registration
certificate by the competent civil aviation authority under the State Council.

    The competent civil aviation authority under the State Council shall set
up a Civil Aircraft Nationality Register of the People's Republic of China to
exclusively record matters concerning nationality registration of civil
aircraft.

    Article 7  The following civil aircraft shall perform nationality
registration of the People's Republic of China:

    (1) The civil aircraft of a State organ of the People's a Republic
of China;

    (2) The civil aircraft of a corporate enterprise set up in accordance
with the law of the People's Republic of China; if such corporate enterprise
has foreign investment in its registered capital, its organizational
structure and composition of personnel, and the proportion of contribution of
Chinese investor shall conform to the provisions of administrative rules and
regulations;

    (3) Other civil aircraft, the registration of which is approved by the
competent civil aviation authority under the State Council.

    Where a civil aircraft was leased form abroad, the lessee being in
conformity with the provisions of the preceding paragraph, and the crew of
the civil aircraft is provided by the lessee, the latter may apply for the
nationality registration of the People's Republic of China, provided that the
original nationality registration of such aircraft has been cancelled.

    Article 8  A civil aircraft which has acquired the nationality of
the People's Republic of China according to law shall display the specified
nationality mark and registration mark.

    Article 9  A civil aircraft shall not possess dual nationality.
Application for the nationality registration of the People's Republic
of China shall not be filed for a civil aircraft which has not cancelled its
nationality of a foreign country.
Chapter III  Rights of Civil Aircraft

    Section 1  Basic Principles

    Article 10  The rights to a civil aircraft as referred to in this Chapter
include the rights to the airframe engines, propellers, radio apparatus of
the civil aircraft and all other articles intended for use in such civil
aircraft, no matter whether they are installed thereon or separated
temporarily therefrom.

    Article 11  The person entitled to the rights of a civil aircraft shall
register the following rights respectively with the competent civil aviation
authority under the State Council.

    (1) The ownership of the civil aircraft;

    (2) The right for the acquisition and possession of the civil aircraft
through an act of purchase;

    (3) The right to possess the civil aircraft in accordance with a lease
contract covering a lease term of six months or over;

    (4) Mortgage of the civil aircraft.

  Article 12  A register of the rights of civil aircraft shall be
maintained by the competent civil aviation authority under the State Council.
Matters registered concerning the Rights of one and the same
civil aircraft shall be recorded in the same register of rights.

    Matters registered concerning the rights of civil aircraft any be made
available to the public for inquiry, reproduction or extraction.

  Article 13  Unless a civil aircraft was the subject of a forced auction
sale in accordance with the law, the nationality registration of such civil
aircraft or the registration of rights thereof shall not be transferred
abroad before the registered rights of such aircraft are compensated or
before the consent of the person entitled to the aforesaid rights is given.

    Section 2  Ownership and Mortgage of Civil Aircraft

    Article 14  The acquisition, transference and extinction of the ownership
of a civil aircraft shall be registered with the competent civil aviation
authority under the State Council; no acquisition, transference or extinction
of the ownership of the civil aircraft shall act against a third party unless
registered.

    The transference of the ownership of a civil aircraft shall be made by a
contract in writing.

    Article 15  Where a State-owned civil aircraft is authorized by the State
to be operated, administered or utilized by a legal person, the provisions of
this Law concerning the owner of civil aircraft shall be applicable to such
legal person.

    Article 16  The mortgage of a civil aircraft shall be established by
registering the mortgage of the civil aircraft with the competent civil
aviation authority under the State Council jointly by the mortgagee
and the mortgagor; no mortgage may act against a third party unless registered.

  Article 17  Once a mortgage is established on a civil aircraft,
the ownership of the mortgaged civil aircraft shall not be transferred
without the consent of the mortgagee.

    Section 3  Civil Aircraft Liens

    Article 18  A civil aircraft lien is the right of the claimant, subject
to the provisions of Article 19 of this Law, to take priority in compensation
against the owner and lessee of the civil aircraft with respect to
the civil aircraft which gave rise to the said claim.

    Article 19  The following obligatory rights shall be entitled to civil
aircraft liens:

    (1) Remuneration for rescuing the civil aircraft;

    (2) Necessary expenses incurred for the custody of the civil aircraft.

    With respect to the obligatory rights specified in the preceding
paragraph, that arising later shall be satisfied first.

    Article 20  The creditor of the civil aircraft liens specified in
Article 19 of this Law shall register his obligatory rights with the
competent civil aviation authority under the State Council within three
months commencing from the date of the end of rescue or custody.

    Article 21  For the common interests of creditors, the expenses incurred
in enforcing the decision of the People's Court and in the course of auction
sale shall be deducted and paid first from the proceeds of the
auction sale of the civil aircraft.

    Article 22  A civil aircraft lien shall have priority over the mortgage
of a civil aircraft.

    Article 23  Where the obligatory rights provided in Article 19 of this Law
are transferred, the civil aircraft liens attached thereto shall be transferred
accordingly.

    Article 24  A civil aircraft lien shall be enforced by the People's Court
by arresting the civil aircraft that gave rise to the said civil aircraft lien.

    Article 25  A civil aircraft lien shall be terminated at the expiry of
three months commencing from the date of the end of rescue or custody; except
that the creditor has registered his obligatory rights according to the
provisions of Article 20 of this Law and that the case is under one of the
following circumstances:

    (1) The creditor and debtor have reached agreement on the amount of the
said obligatory rights;

    (2) The legal action concerning the obligatory rights has started.

    A civil aircraft lien shall not be extinguished because of the
transference of the ownership of the civil aircraft; except that the civil
aircraft was the subject of a forced auction sale in accordance with law.

    Section 4  Lease of Civil Aircraft

    Article 26  A civil aircraft lease contract, including financing lease
contract and other lease contracts, shall be made in writing.

    Article 27  The "financing lease of civil aircraft"  means that the
lessor acquires a civil aircraft pursuant to the selection of the lessee
with respect to supplier and civil aircraft, and leases it to the lessee,
who shall pay rental periodically.

    Article 28  During the period of financing lease the lessor shall be
legally entitled to the ownership of the civil aircraft, and the lessee shall
be legally entitled to the rights of possession, utilization and earnings of the civil aircraft.

    Article 29  During the period of financing lease, the lessor shall ensure
the lessee to possess and use the civil aircraft without interference;
the lessee shall take proper care of the civil aircraft and keep it in
the condition in which it was delivered, subject to fair wear and tear and
to any modification of the civil aircraft agreed by the lessor.

    Article 30  When the financing lease contract, comes to an end,
the lessee, unless exercising a right to purchase the civil aircraft or to
hold the civil aircraft on lease for a further period in accordance with the
contract, shall return the civil aircraft to the lessor in the condition
specified in Article 29 of this Law.

    Article 31  The supplier in the financing lease of a civil aircraft shall
not be liable to both the lessor and the lessee at the same time in respect
of the same damage.

    Article 32  During the period of financing lease, the lessee may transfer
the right of the possession of the civil aircraft as well as other rights
under the lease contract only with the consent of the lessor and without
jeopardizing the interests of third parties.

    Article 33  In the case of a financing lease, or other leases covering a
period of six months or longer, the lessee shall register his right of
possession of the civil aircraft with the competent civil aviation authority
under the State Council; no such lease may act against a third party unless
registered.
Chapter IV  Airworthiness Management of Civil Aircraft

    Article 34  Application shall be filed with the competent civil aviation
authority under the State Council for type certificate for the designing of
civil aircraft and its engines, propellers and on-board equipment. A
type certificate shall be issued accordingly if found qualified.

    Article 35  Application shall be filed with the competent civil aviation
authority under the State Council for production certificate and maintenance
certificate for the production and maintenance of civil aircraft and its
engines, propellers and on-board equipment. A certificate or certificates
shall be issued accordingly if found qualified.

    Article 36  Where a civil aircraft and its engines, propellers and
on-board equipment produced by a foreign manufacturer are imported into China
for the first time, such foreign manufacturer shall file an application
with the competent civil aviation authority under the State Council for type
validation certificate. A type validation certificate shall be issued if
found qualified.

    Where a civil aircraft and its engines, propellers and on-board equipment,
for which a type certificate has been issued in a foreign country, are
produced for the first time in China, the holder of the type certificate
shall file an application with the competent civil aviation authority under
the State Council for type validation certificate. A type validation
certificate shall be issued if found qualified.

    Article 37  A civil aircraft possessing the nationality of the People's
Republic of China may fly only if it holds an airworthiness certificate
issued by the competent civil aviation authority under the State Council.

    Application shall be filed with the competent civil aviation authority
under the State Council by the manufacturer for export airworthiness
certificate with respect to the export of civil aircraft and its engines,
propellers and on-board equipment. An export airworthinees certificate
shall be issued if found qualified.

    A foreign civil aircraft on lease may fly only after the competent civil
aviation authority under the State Council has examined and rendered valid
its airworthiness certificate issued by the State in which the nationality of
such aircraft was originally registered, or has issued a new airworthinees
certificate therefor.

    The regulations for the airworthiness of civil aircraft shall be
formulated by the State Council.

    Article 38  The owner and lessee of a civil aircraft shall use the
aircraft in accordance with the scope of use prescribed in airworthiness
certificate,conscientiously carry out the maintenance of the aircraft and
ensure its airworthiness.
Chapter V  Airmen

    Section 1  Basic Principles

    Article 39  "Airmen" as referred to in this Law means the following
flight personnel and ground personnel engaged in civil aviation activities:

    (1) Flight personnel, including pilots, navigators, flight engineers,
flight radio operators and cabin attendants;

    (2) Ground personnel, including civil aircraft maintenance personnel,
air traffic controllers, flight dispatchers and aeronautical radio station
operators.

    Article 40  An airman may perform the duty specified in his licence only
if be bas received professional training, and has been qualified through
examination and issued a licence by the competent civil aviation
authority under the State Council.

    Flight personnel and air traffic controllers shall, before obtaining
licences, also be subject to the check of the physical examination unit
approved by the competent civil aviation authority under the State
Council, and obtain the physical examination certificate issued by the
competent civil aviation authority under the State Council.

    Article 41  Flight personnel shall in performing flight missions, carry
on their persons licences and physical examination certificates and be
subject to the check of the competent civil aviation authority under
the State Council.

    Article 42  Airmen shall be subject to the periodical or non-periodical
inspection and examination of the competent civil aviation authority under
the State Council. Only those qualified in inspection and examination
may continue to perform the duties specified in their licences.

    Flight personnel shall also take part in periodical
training of emergency procedures.

    Flight personnel who have exceeded the time limit of interruption in
flight prescribed by the competent civil aviation authority under the State
Council shall be subject to inspection and examination; with the exception of
cabin attendants, flight personnel shall also go through instruction flight.
Only those qualified through inspection, examination and instruction
flight may continue to perform the duties specified in their licenses.

    Section 2  Crew

    Article 43  The crew of a civil aircraft is composed of a pilot-in-command
and other flight personnel. The pilot-in-command shall be a pilot possessing
the technique and experience of independently piloting that type of civil
aircraft.

    The composition of a crew and the number of its members shall conform to
the regulations of the competent civil aviation authority under the State
Council.

    Article 44  The pilot-in-command is responsible for the operation of the
civil aircraft, and shall strictly perform his duties to protect the safety
of the civil aircraft and persons and property carried therein.

    The pilot-in-command issues orders within the scope of his functions and
powers, and the orders shall be implemented by the persons carried by the
civil aircraft.

    Article 45  The pilot-in-command shall carry out necessary inspection of
the civil aircraft before flight; no civil aircraft shall takeoff unless
inspected.

    Where and when a pilot-in-command discovers that the civil aircraft,
airport and weather conditions do not conform to the requirements prescribed
and cannot ensure flight safety, he has the right to refuse takeoff.

    Article 46  The pilot-in-command bas the right to take necessary and
appropriate measures in flight, under the prerequisite of ensuring flight
safety, against any acts which may destroy the civil aircraft,
interfere with the order on board and jeopardize the safety of persons or
property therein, and any other acts jeopardizing flight safety.

    In case of extraordinary circumstances in flight, the pilot-in-command
shall have authority as to the disposition of the civil aircraft so as to
ensure the safety of the aircraft and the persons therein.

    Article 47  The pilot-in-command has the right to ask for a change of
crew member(s) in order to ensure flight safety if he discovered that the
crew member(s) are not suitable for performing the flight mission.

    Article 48  In case a civil aircraft is in distress, the pilot-in-command
has the right to take all necessary measures, and direct the crew members and
other persons on board the aircraft to take rescue measures.In case of
emergency which necessitates evacuation from the civil aircraft in distress,
the pilot-in-command must take measures first to organize passengers to
leave the civil aircraft safely; no crew member shall leave the civil aircraft
unless authorized by the pilot-in-command; the pilot-in-command shall be
the last to leave the aircraft.

    Article 49  In case an accident occurred to a civil aircraft, the
pilot-in-command shall report in time the state of the accident accurately
to the competent civil aviation authority under the State Council
directly or through air traffic control unit.

    Article 50  When a pilot-in-command received SOS signals from a ship or
another aircraft, or discovered, a ship or an aircraft and the persons
therein in distress, he shall report the state of distress in time
to the nearest air traffic control unit and give possible, rational assistance.

    Article 51  In case a pilot-in-command is unable to perform his duties
in flight due to one reason or another, the pilot holding a post next only to
him shall act on his behalf, the owner or lessee of the civil aircraft shall
assign a new pilot-in-command to take over before the aircraft takes off at
the next place of stop.

    Article 52  In the case of a civil aircraft with only one pilot and
without the need to have other flight personnel, the provisions of this
Section concerning the pilot-in-command shall be applicable to such pilot.
Chapter VI  Civil Airport

    Article 53  "Civil airport" as referred to in this Law means a defined
area, including any subsidiary buildings, installations and equipment,
intended to be used for the takeoff, landing, taxiing, parking and other
activities of civil aircraft.

    The civil airport refereed to in this Law does not include temporary
airfield.

    The provisions for the management of airports used by both military and
civil air operations shall be separately formulated by the State Council and
the Central Military Commission jointly.

    Article 54  The construction and utilization of civil airports shall be
subject to overall arrangement and rational distribution, and the efficiency of airport utilization shall be raised.

    The plan of distributions and construction of civil airports in the whole
country shall be formulated jointly by the competent civil aviation authority
under the State Council and other departments concerned under the State
Council, and shall be implemented after being approved in accordance with the
procedures prescribed by the State.

    The People's Governments of provinces, autonomous regions and
municipalities directly under the central government shall formulate
the civil airport construction plans of their own administrative areas on
the basis of the national plan of civil airport distribution and
construction, and incorporate such plans in the national economic and social
development programs at their respective levels after being approved in
accordance with the procedures prescribed by the State.

    Article 55  The civil airport constriction plan shall be coordinated
with city construction planning.

    Article 56  The constriction, modification and extension of civil
airport shall conform to the plan of civil airport distribution and
construction formulated according to law and to the standards of civil airport,
and shall be subject to the approval of the competent authority concerned and
implemented in accordance with State regulations.

    A construction project of civil airport not conforming to the plan of
civil airport distribution and construction formulated according to law shall
not be approved.

    Article 57  With respect to the construction and extension of civil
airport, an announcement shall be issued by the local People's Government
at county or higher level of the place where the civil airport is locate.

    The announcement prescribed in the preceding paragraph shall be published
in main local newspapers, and posted in areas around the airport to be
constructed or extended.

    Article 58  The following activities are prohibited within the limits of
civil airport defined according to law and within the airport obstacle
clearance protection zone defined according to State regulations:

    (1) The construction of buildings or facilities that will possibly affect
flight safety by emitting large amount of smoke, dust, flames and waste gas
in the air;

    (2) The construction of buildings or facilities that will affect flight
safety such as shooting range and storage of strong explosives;

    (3) The construction of buildings or facilities that do not meet the
requirements of obstacle clearance of the airport;

    (4) The installation of lights, signs or objects that will affect the use
of airport visual navaid;

    (5) The growing of plants that will affect flight safety or affect the
use of airport navaid;

    (6) The keeping and setting free of birds and other objects that will
affect flight safety;

    (7) The construction of buildings and facilities that will affect the
electromagnetic environment of the airport.

    Herding of livestock within the limits of civil airport defined according
to law is prohibited.

    Article 59  Before the issue of announcement concerning the constriction
and extension of a civil airport, the buildings, structures, trees, lights and
other obstacles existing within the limits of the civil airport defined
according to law and within the airport obstacle clearance protection zone
defined in accordance with State regulations that might affect light safety
shall be removed within prescribed time limit; the damage caused thereby
shall be compensated, or other remedial measures shall be taken according to
law.

    Article 60  After the issue of announcement concerning the constriction
and extension of a civil airport, the buildings, structures, trees, lights
and other obstacles that affect flight safety built, planted or put up by
any unit of individual within the limits of the civil airport defined
according to law and within the airport obstacle clearance protection zone
defined in accordance with State regulations in violation of this Law and the
provisions of relevant administrative rules and regulations shall be removed
by the order of the local People's Government at county or higher level of
the place where the airport is located; the damage caused thereby shall
be borne by the person who built, planted of put up such obstacles.

    Article 61  In accordance with the relevant regulations, of the State,
movement obstacle lights and marks shall be installed on high buildings or
facilities outside the civil airport and its obstacle clearance protection
zone defined according to State regulations that will possibly affect flight
safety, and shall be kept in normal condition.

    Article 62  A civil airport may be opened to traffic only if it holds
an airport operating licence.

    A civil airport may apply for an airport operating licence if it meets
the following conditions and has been checked and accepted as qualified
according to State regulations:

    (1) It has available a movement area, a terminal area, a working area
and service facilities and personnel corresponding to its operation;

    (2) It has available air traffic control, communication, navigation and
meteorological facilities and personnel that can ensure flight safety;

    (3)It has available security protection conditions conforming to State
regulations;

    (4) In has an emergency plan to deal with extra-ordinary circumstances
and corresponding facilities and personnel;

    (5) It has available other conditions specified by the competent civil
aviation authority under the State Council.

    An international airport shall also have the conditions for operating
international air transport and be provided with customs and other port
inspection organs.

    Article 63  A civil airport operating licence shall be applied for by
airport administrative organ to the competent civil aviation authority under
the State Council, and shall be issued after being examined and
approved by the competent civil aviation authority under the State Council.

    Article 64  The establishment of an international airport shall be
reported by the competent civil aviation authority under the State Council
for the examination and approval of the State Council.

    The opening to traffic of an international airport shall be announced to
the public by the competent civil aviation authority under the State Council;
the data of an international airport shall be exclusively provided
by the competent civil aviation authority under the State Council.

    Article 65  A civil airport shall take measures to ensure the safety of
personnel and property in the airport in accordance with the provisions of
the competent civil aviation authority under the State Council.

    Article 66  A civil airport used by civil aircraft for the purpose of
transporting passengers and cargo shall be equipped with necessary facilities
to provide good service to passengers, shippers and consignees in
accordance with the standards provided by the competent civil aviation
authority under the State Council.

    Article 67  A civil airport administrative organ shall protect well the
environment of the civil airport in accordance with the provisions of
the laws and administrative rules and regulations concerning environment
protection.

    Article 68  A use's charge and a service charge shall be paid for the use
of civil airport and its navaid by a civil aircraft; the rates of user's
charge and service charge shall be formulated jointly by the competent
civil aviation authority under the State Council and the finance department
and the competent authority of prices under the State Council.

    Article 69  Where a civil airport is abandoned or used for other purposes,
the civil airport administrative organ shall go through the formalities of
reporting and approval in accordance with State regulations.
Chapter VII  Air Navigation

    Section 1  Airspace Management

    Article 70  The State exercises unified management over the airspace.

    Article 71  In delineating the airspace, consideration shall be given to
the requirements of both civil aviation and the security of national defence
and to public interest for the rational, full and effective utilization
of the airspace.

    Article 72  The detailed method of airspace management shall be
formulated jointly by the State Council, and the Central Military Commission.

    Section 2  Flight Management

    Article 73  Responsibility for the control of aircraft operating within a
defined, controlled airspace shall be vested in a single air traffic control
unit.

    Article 74  The approval of an air traffic control unit shall be obtained
for a civil aircraft to conduct flight activities in a controlled airspace.

    Article 75  A civil aircraft in flight shall follow the air route and fly
at the altitude specified by the air traffic control unit; permission shall
be obtained from the air traffic control unit if a deviation from the air
route or a change in flight altitude specified is necessary for one reason or
another.

    Article 76  Aircraft flying in the territory of the People's Republic of
China must observe unified rules of the air.

    A civil aircraft performing visual flight shall observe visual flight
rules and keep a safe separation from other aircraft and ground obstacles.

    A civil aircraft performing instrument flight shall observe instrument
flight rules.

    The rules of the air shall be formulated jointly by the State Council and
the Central Military Commission.

    Article 77  No crew member of a civil aircraft shall perform a flight
mission if his flight time or time on duty exceeds the time limits prescribed
by the competent civil aviation authority under the State Council.

    No crew member of a civil aircraft shall perform a flight mission if his
work capacity is impaired by the effect of alcoholic beverage, narcotic or
other drugs.

    Article 78  No civil aircraft shall fly into a prohibited area unless it
is specially approved in accordance with State regulations; no civil aircraft
shall fly into a restricted area unless it observes the prescribed conditions
of restriction.

    The prohibited area and restricted area specified in the preceding
paragraph are defined in accordance with State regulations.

    Article 79  No civil aircraft shall fly across the airspace over a city
except in one of the following circumstances:

    (1) It is necessary for takeoff, landing or specified air route;

    (2) The flight altitude is high enough to permit the civil aircraft to
leave the airspace over the city in the event of emergency without undue
hazard to persons or property on the surface;

    (3) The flight has been approved in accordance with the procedures
prescribed by the State.

    Article 80 Nothing shall be dropped or sprayed from a civil aircraft in
flight except in one of the following circumstances:

    (1) It is indispensable for flight safety;

    (2) It is indispensable for performing a rescue mission or other flights
missions conforming to the public interest of the society.

    Article 81  No civil aircraft shall fly out of the territory of the
People's Republic of China unless approved.

    Where a civil aircraft is leaving the airspace of the People's Republic
of China without authorization, the department concerned has the right to
take necessary measures to stop it in accordance with concrete conditions.

    Section 3  Flight Support

    Article 82  An air traffic control unit shall provide air traffic service
to civil aircraft in flight, including air traffic control service, flight
information service and alerting service.

    The purpose of providing air traffic control service is to prevent
collisions between civil aircraft and aircraft, and between civil aircraft
and obstacles, and maintain and expedite an orderly flow of air traffic.

    The purpose of providing flight information service is to provide advice
and information useful for the safe and efficient conduct of flights.

   The purpose of providing alerting service is to notify appropriate
organizations regarding aircraft in need of search and rescue aid, and assist
such organizations as required.

    Article 83  In the event that an air traffic control unit discovers a
civil aircraft deviated from its specified air route or lost its course, it
shall rapidly take all necessary measures to enable the aircraft
to regain course.

    Article 84  Necessary navigation, communication, meteorological and
ground monitoring equipments shall be installed on the air route.

    Article 85  The natural obstacles that affect flight safety on air route
shall be marked on aeronautical charts; flight obstacle rights and marks
shall be installed on man-made obstacles that affect flight safety on air
route and shall be kept in normal condition.

    Article 86  The construction of a shooting range or other  facilities
that will possibly affect flight safety is prohibited within the area
extending 30 kilometers from the edges of an air route, unless it is a shooting
range for flat trajectory light weapon.

    The construction of a fixed or temporary shooting ground beyond the area
prescribed in the preceding paragraph shall be subject to approval according
to relevant State regulations; the shooting direction of an air shooting
range shall not intersect an air route.

    Article 87  Any activity that will possibly affect flight safety may be
carried out only after being approved according to law with necessary
measures being taken to ensure flight safety.

    Article 88  The competent civil aviation authority under the State
Council shall exercise control over civil aviation radio stations and the
special frequencies assigned to be used by civil aviation system according
to law.

    No radio station or other instrument and device used by a unit or an
individual shall hinder the normal use of civil aviation special radio
frequencies. Where harmful interference has been caused to civil aviation
special radio frequencies, the unit or individual concerned shall rapidly
remove such interference; the use of such radio station or other instrument
and device shall be stopped before the removal of the interference.

    Article 89  The post and telecommunication enterprise shall give priority
in service to civil aviation telecommunication transmission.

    The State meteorological organ shall provide necessary meteorological
data to civil aviation meteorological organ.

    Section 4  Essential Documents for Flight

    Article 90  A civil aircraft engaged in flight operation shall carry the
following documents:

    (1) Civil aircraft certificate of nationality registration;

    (2) Civil aircraft certificate of airworthiness;

    (3) Appropriate licences for crew members;

    (4) Civil aircraft journey log book;

    (5) If the civil aircraft is equipped with radio apparatus, its radio
station licence;

    (6) If the civil aircraft carries passengers, a list of their names and
places of embarkation and destination;

    (7) If the civil aircraft carries cargo, a manifest and detailed
declarations of the cargo;

    (8) Other documents that should be carried according to the flight mission.

    Where a civil aircraft fails to carry the documents as listed in
the preceding paragraph according to regulations, the competent civil
aviation authority under the State Council or the regional civil aviation
administrative organ authorized by it may prohibit such civil
aircraft to take off.
Chapter VIII  Public Air Transport Enterprise.

    Article 91  "Public air transport enterprise"  means a corporate
enterprise engaged in the transport of passengers, baggage, mail or cargo
with civil aircraft for the purpose of making profit.

    Article 92  In establishing a public air transport enterprise,
application shall be filed with the competent civil aviation authority under
the State Council for operating licence, and registration with the department
of industrial and commercial administration shall be performed according to
law; where a public air transport enterprise fails to obtain operating
licence, no registration should be performed for such enterprise by the
department of industrial and commercial administration.

    Article 93  The establishment of a public air transport enterprise shall
satisfy the following conditions:

    (1) It has the civil aircraft conforming to the requirements of ensuring
flight safety as stipulated by the States;

    (2) It has the necessary airmen who have been issued licences according
to law;

    (3) It has the registered capital not less than the minimum limit
prescribed by the State Council;

    (4) Other conditions prescribed in laws and administrative rules and
regulations.

    Article 94  The provisions of the Corporation Law shall be applicable to
the form of organization and institutional framework of public air transport
enterprises.

    Where the form of organization and institutional framework of the public
air transport enterprises established before the implementation of this Law
do not completely conform to the provisions of the Corporation Law, original
provisions can continue to be followed, and the date of the application of
the provisions in the preceding paragraph shall be specified by the State
Council.

    Article 95  A public air transport enterprise shall take the assurance of
flight safety, the regularity of flight and the provision of good service as
guiding principles, and take effective measures to improve transport service
quality.

    A public air transport enterprise shall educate and require its staff and
workers to strictly perform their duties, and conscientiously accomplish the
services of transporting passengers and cargo with refined manners and
thoughtfulness.

    In the event of delay in passenger transport flight, relevant information
shall be announced in time in the airport.

    Article 96  A public air transport enterprise shall apply to the
competent civil aviation authority under the State Council for approval with
respect to the air route to be operated for scheduled air services, and the
suspension or termination of the operation of air route.

    A public air transport enterprise operating scheduled air services shall
have its timetable published.

    Article 97  The chargeable business items of a public air transport
enterprise shall be determined by the competent civil aviation authority
under the State Council.

    The tariff of domestic air transport shall be formulated jointly by the
competent civil aviation authority under the State Council and the competent
authority of prices under the State Council, and shall be implemented after
being approved by the State Council.

    The tariff of international air transport shall be implemented in
accordance with the provisions of the agreements signed between the
Government of the People's Republic of China and foreign governments; in the
absence of any agreement, the tariff shall be formulated with reference to
the market prices of international air transport, and shall be implemented
after being approved by the competent civil aviation authority under the
State Council.

    Article 98  The operation of non-scheduled air transport by a public air
transport enterprise shall be subject to the approval of the competent civil
aviation authority under the State Council, provided that it shall not affect
the normal operation of scheduled air transport.

    Article 99  A public air transport enterprise shall formulate a security
plan in accordance with the public air transport security regulations
formulated by the State Council, and report to the competent civil aviation
authority under the State Council for the record.

    Article 100  No public air transport enterprise shall carry articles the
transport of which is prohibited by the provisions of laws and administrative
rules and regulations.

    No public air transport enterprise shall carry munitions of war and
implements of war unless approved by the competent civil aviation authority
under the State Council.

    Passengers bringing on their persons articles the transport of which is
prohibited by the provisions of laws and administrative rules and regulations
are prohibited from flying in a civil aircraft.

    Article 101  A public air transport enterprise shall observe the relevant
regulations of the State in the transport of dangerous articles.

    The consigning of dangerous articles for shipment under the name of
non-dangerous articles is prohibited.

    Passengers bringing dangerous articles on their persons are prohibited
from flying in a civil aircraft. Passengers bringing firearms or cutting
tools are prohibited from flying in a civil aircraft unless they are
performing official duties and approved in accordance with State regulations.
The consigning of dangerous articles as baggage for shipment against the
provisions stipulated by the competent civil aviation authority under the
State Council is prohibited.

    The names of dangerous articles shall be prescribed and published by the
competent civil aviation authority under the State Council.

    Article 102  No public air transport enterprise shall carry passengers
who refused to accept security inspection, nor shall it carry baggage which
have not gone through security inspection against State regulation.

    A public air transport enterprise must carry out security inspection or
take other measures to ensure the security of the cargo it undertakes to
transport in accordance with the provisions stipulated by the competent
civil aviation authority under the State Council.

    Article 103  The civil aircraft of a public air transport enterprise
engaged in international air transport and the persons, baggage and cargo
carried therein shall accept the inspection of such competent authorities as
frontier inspection, customs and quarantine; provided that unnecessary delay
shall be prevented at the time of inspection.

    Article 104  A public air transport enterprise shall give priority to the
transport of mail in accordance with the provisions of relevant laws and
administrative rules and regulations.

    Article 105  A public air transport enterprise shall be covered by
insurance against liability for third parties on the surface.
Chapter IX  Public Air Transport

    Section 1  Basic Principles

    Article 106  This Chapter shall apply to the transport of persons,
baggage, or cargo performed by the civil aircraft of public air transport
enterprise, including the gratuitous transport performed by the civil
aircraft of public air transport enterprise.

    This Chapter shall not apply to the transport of mail performed by civil
aircraft.

    The provisions of this Chapter shall apply to the part of transport by
air in the case of multi-modal transport.

    Article 107  "Domestic air transport" referred to in this Chapter means
any transport in which, according to the contract of transport by air between
the parties, the place of departure, the place of destination and the agreed
stopping place are all situated within the territory of the People's Republic
of China.

    "International air transport" referred to in this Chapter means any
transport in which, according to the contract of transport by air between the
parties, the place of departure, the place of destination or the agreed
stopping place, whether or not there be a break in the transport or a
transshipment, is not situated within the territory of the People's Republic
of China.

    Article 108  Transport to be performed by several successive air carriers
is deemed, for the purpose of this Law, to be one undivided transport, if it
has been regarded by the parties of the contract of transport by air as a
single operation, whether it had been agreed upon under the form of a single
contract or of a series of contracts.

    Section 2  Transport Documents

    Article 109  For the transport of passengers the carrier shall deliver a
passenger ticket. A passenger to travel in civil aircraft shall produce a
valid passenger ticket for check.

    Article 110  The contents of a passenger ticket shall be prescribed by
the competent civil aviation authority under the State Council. A passenger
ticket shall at least contain the following particulars:

    (1) The place of departure and of destination;

    (2) If the places of departure and destination are within the territory
of the People's Republic of China, one or more agreed stopping places being
outside the said territory, an indication of at least one such stopping
place;

    (3) If the ultimate destination, the place of departure or the agreed
stopping place of the passenger's journey is not situated within the
territory of the People's Republic of China, a notice indicating the
international air transport convention applicable to such transport, in case
such convention requires the inclusion of the notice in the passenger ticket.

    Article 111  The passenger ticket shall constitute prima facie evidence
of the conclusion and conditions of the contract of transport of passenger by
air.

    The failure of the passenger to produce the passenger ticket, or the
irregularity or loss of the passenger ticket does not affect the existence or
validity of the contract of transport.

    In domestic air transport, if, with the consent of the carrier, the
passenger embarks on a civil aircraft without a passenger ticket having been
delivered, the carrier shall not be entitled to avail himself of the
provisions of Article 128 of this Law concerning the limit of liability.

    In international air transport, if, with the consent of the carrier, the
passenger embarks on a civil aircraft without a passenger ticket having been
delivered, or if the ticket does not include the notice required by
sub-paragraph (3) of Article 110 of this Law, the carrier shall not be
entitled to avail himself of the provisions of Article 129 of this Law
concerning the limit of liability.

    Article 112  In respect of the transport of checked baggage by a carrier,
a baggage check may be combined with or incorporated in a passenger ticket.
In addition to the provisions of Article 110 of this Law, a baggage check
shall also include the following particulars:

    (1) The number of packages and weight of the baggage;

    (2) If a declaration of interest in delivery at destination of the
checked baggage is required, indicate the sum of declared interest.

    The baggage check shall constitute prima facie evidence of the checking
of the baggage and of the condition of the contract of transport.

    The failure of the passenger to produce the baggage check, or the
irregularity or loss of the baggage check does not affect the existence or
validity of the contract of transport.

    In domestic air transport, if the carrier carries the checked baggage
without a baggage check having been delivered, he shall not be entitled to
avail himself of the provisions of Article 128 of this Law concerning the
limit of liability.

    In international air transport, if the carrier carries the checked
baggage without a baggage check having been delivered, or if the baggage
check does not include the notice required by sub-paragraph (3) of
Article 110 of this Law, the carrier shall not be entitled to avail himself
of the provisions of Article 129 of this Law concerning the limit of
liability.

    Article 113  The carrier has the right to require the shipper to make out
an air waybill; a shipper has the right to require the carrier to accept the
air waybill. The failure of the shipper to produce the air waybill, or the
irregularity or loss of the air waybill shall not affect the existence or
validity of the contract of transport.

    Article 114  The air waybill shall be made out by the shipper in three
original parts and be handed over to the carrier with the cargo.

    The first part of the air waybill shall be marked "for the carrier" and
shall be signed and sealed by the shipper; the second part shall be marked
"for the consignee" and shall be signed and sealed by both the shipper and
the carrier; the third part shall be signed and sealed by the carrier and
handed by him to the shipper after the cargo has been accepted.

    If, at the request of the shipper, the carrier makes out the air waybill,
he shall be deemed, subject to proof to the contrary, to have done so on
behalf of the shipper.

    Article 115  The contents of an air waybill shall be prescribed by the
competent civil aviation authority under the State Council. An air waybill
shall at least contain the following particulars:

    (1) The place of departure and of destination;

    (2) If the place of departure and destination are within the territory
of the People's Republic of China, one or more agreed stopping places being
outside such territory, an indication of at least one such stopping place;

    (3) If the ultimate destination, the place of departure or the agreed
stopping place of the cargo transport is not situated within the territory
of the People's Republic of China, a notice indicating the international
air transport convention applicable to such transport, in case such
convention requires the inclusion of the notice in the air waybill.

    Article 116  In domestic air transport, if, with the consent of the
carrier, cargo is carried without an air waybill having been made out, the
carrier shall not be entitled to avail himself of the provisions of
Article 128 of this Law concerning the limit of liability.

    In international air transport, if, with the consent of the carrier,
cargo is carried without an air waybill having been made out, or if the air
waybill does not include the notice required by sub-paragraph (3) of
Article 115 of this Law, the carrier shall not be entitled to avail himself
of the provisions of Article 129 of this Law concerning the limit of
liability.

    Article 117  The shipper shall be responsible for the correctness of the
particulars and statements relating to the cargo which he inserts in the air
waybill.

    The shipper shall indemnify the carrier against all damage suffered by
him, or by any other person to whom the carrier is liable, by reason of the
irregularity, incorrectness or incompleteness of the particulars and
statements inserted in the air waybill.

    Article 118  The air waybill shall be prima facie evidence of the
conclusion of the contract of transport of cargo by air, of the conditions of
transport and of the receipt of the cargo by the carrier.

    The statements in the air waybill relating to the weight, dimensions,
and packing of the cargo, as well as those relating to the number of
packages, shall be prima facie evidence of the facts stated. Those relating
to the quantity, volume, and conditions of the cargo shall not constitute
evidence against the carrier except so far as they both have been and are
stated in the air waybill to have been checked by him in the presence of the
shipper, or relate to the apparent coalition of the cargo.

    Article 119  Subject to his liability to carry out all his obligations
under the contract of transport of cargo by air, the shipper shall have the
right to dispose of the cargo by withdrawing them at the airport of departure
or destination, or by stopping them in the course of the journey on any
landing, or by calling for them to be delivered at the place of destination,
or in the course of the journey to a person other than the consignee named in
the air waybill, or by requiring them to be returned to the airport of
departure; provided that the shipper must not exercise this right of
disposition in such a way as to prejudice the carrier or other shippers and
he must repay any expenses occasioned by the exercise of this right.

    If it is impossible to carry out the orders of the shipper, the carrier
must so inform him forthwith.

    If the carrier obeys the orders of the shipper for the disposition of the
cargo without requiring the production of the part of the air waybill
delivered to the latter, he will be liable, without prejudice to his right of
recovery from the shipper, for any damage which may be caused thereby to any
person who is lawfully in possession of that part of the air waybill.

    The right conferred on the shipper shall cease at the moment when that of
the consignee begins in accordance with the provisions of Article 120 of this
Law; provided that if the consignee declines to accept the air waybill or the
cargo, or if he cannot be communicated with, the shipper shall resume his
right of disposition.

    Article 120  Except in the circumstances set out in Article 119, the
consignee shall be entitled, on arrival of the cargo at the place of
destination, to require the carrier to hand over to him the air waybill and
to deliver the cargo to him, on payment of the charges due and on complying
with the conditions of transport set out in the air waybill.

    Unless it is otherwise agreed, it shall be the duty of the carrier to
give notice to the consignee as soon as the cargo arrives.

    If the carrier admits the loss of the cargo, or if the cargo has not
arrived at the expiration of seven days after the date on which it ought to
have arrived, the consignee shall be entitled to put into force against the
carrier the rights which flow from the contract of transport of cargo by air.

    Article 121  The shipper and the consignee can respectively enforce all
the rights given them by Articles 119 and 120 of this Law, each in his own
name, whether he is acting in his own interest or in the interest of another,
provided that he carries out the obligations imposed by the contract of
transport of cargo by air.

    Article 122  The provisions of Articles 119, 120 and 121 of this Law
shall not affect the relations of the shipper and the consignee with each
other or the mutual relations of third parties whose right are derived
either from the shipper or from the consignee.

    Any terms of the contract which are different from the provisions of
Articles 119, 120 and 121 of this Law shall be expressly stated in the air
waybill.

    Article 123  The shipper shall furnish such information and documents as
are necessary to meet the formalities provided by laws and administrative
rules and regulations before the cargo can be delivered to the consignee.
The shipper shall be liable to the carrier for any damage occasioned by the
absence, insufficiency or irregularity of any such information or documents,
unless the damage is due to the fault of the carrier, his servants or agents.

    The carrier is under no obligation to check such information or documents
unless otherwise provided by laws and administrative rules and regulations.

    Section 3  Liability of the Carrier

    Article 124  The carrier shall be liable for the death or personal injury
of a passenger, if the accident took place on board the civil aircraft or in
the course of any of the operations of embarking on or disembarking from the
civil aircraft; provided that the carrier is not liable if the death or
injury resulted solely from the state of health of the passenger.

    Article 125  The carrier shall be liable for the destruction or loss of,
or damage to, any carry-on articles of the passenger, if the occurrence took
place on board the civil aircraft or in the course of any of the operations
of embarking on or disembarking from the civil aircraft of the passenger. The
carrier shall be liable for the destruction or loss of, or damage to, any
checked baggage of the passenger, if the occurrence took place during the
transport by air.

    The carrier shall not be liable for the destruction or loss of, or damage
to, any carry-on articles or checked baggage of the passenger if such
destruction or loss or damage resulted solely from the inherent defect,
quality or vice of the baggage.

    "Baggage" referred to in this Chapter includes both checked baggage and
the carry-on articles of the passenger.

    The carrier shall be liable for the destruction or loss of, or damage to,
any cargo if the occurrence took place during the transport by air; provided
that the carrier is not liable if he proves that the destruction or loss of,
or damage to, the cargo resulted solely from one or more of the following:

    (1) Inherent defect, quality or vice of that cargo;

    (2) Defective packing of that cargo performed by a person other than the
carrier or his servants or agents;

    (3) An act of war or an armed conflict;

    (4) An act of public authority carried out in connection with the entry,
exit or transit of the cargo.

    The "period of the transport by air" referred to in this Article means
the whole period during which the checked baggage or cargo is in the charge
of the carrier, whether in an airport or on board a civil aircraft, or, in
the case of a landing outside the airport, in any place whatsoever.

    The period of the transport by air does not extend to any transport by
land, by sea or by river performed outside an airport; provided that if such
transport is used for loading, delivery or transshipment for the performance
of a contract of transport by air, any damage took place during such
transport is presumed, subject to proof to the contrary, to have been the
damage taken place during the preriod of transport by air.

    Article 126  The carrier shall be liable for damage occasioned by delay
in the transport by air of passengers, baggage or cargo; provided that the
carrier is not liable if he proves that he and his servants or agents have
taken all necessary measures to avoid the damage or that it was impossible
for him or them to take such measures.

    Article 127  In the transport of passengers and baggage, if the carrier
proves that the damage was caused by or contributed to by the fault of the
claimant, the carrier may be wholly or partly exonerated from his liability
in accordance with the extent of the fault that caused or contributed to such
damage. Where a person other than the passenger claims compensation with
respect to the death or injury of the passenger, the carrier may similarly be
wholly or partly exonerated from his liability in accordance with the extent
of the fault that caused or contributed to such damage, if the carrier proves
that the death or injury was caused or contributed to by the fault of the
passenger himself.

    In the transport of cargo, if the carrier proves that the damage was
caused by or contributed to by the fault of the person claiming
compensation, or the person from whom he derived his right, the carrier shall
be wholly or partly exonerated from his liability in accordance with the
extent of the fault that caused or contributed to such damage.

    Article 128  The limits of carrier's liability in domestic air transport
shall be formulated by the competent civil aviation authority under the State
Council and put in force after being approved by the State Council.

    If the passenger or the shipper has made, at the time when the checked
baggage or cargo was handed over to the carrier, a special declaration of
interest in delivery at destination and has paid a supplementary sum if the
case so requires, the carrier will be liable to pay a sum not exceeding the
declared sum, unless he proves that the sum declared by the passenger or
shipper is greater than the actual interest of the checked baggage or cargo
in delivery at destination; the other provisions of Article 129 of this Law
shall be applicable to domestic air transport except the limits of liability.

    Article 129  In international air transport, the liability of the carrier
shall be as the following:

    (1) The liability of the carrier for each passenger is limited to the sum
of 16600 units of account. Nevertheless, the passenger may agree with the
carrier in writing to a limit of liability higher than that prescribed by
this sub-paragraph.

    (2) The liability of the carrier for each kilogram of checked baggage or
cargo is limited to a sum of 17 units of account. If the passenger or shipper
has made, at the time when the package was handed over to the carrier, a
special declaration of interest in delivery at destination and has paid a
supplementary sum if the case so requires, the carrier will be liable to pay
a sum not exceeding the declared sum, unless he proves that the sum declared
by the passenger or shipper is greater than the actual interest of the
checked baggage or cargo in delivery at destination.

    In the case of destruction, loss, damage or delay of a part of checked
baggage or cargo, or of any object contained therein, the weight to be taken
into consideration in determining the amount to which the carrier's liability
is limited shall only be the total weight of the package or packages
concerned. Nevertheless, when the destruction, loss, damage or delay of a
part of the checked baggage or cargo, or of an object contained therein,
affects the value of other packages covered by the same baggage check or the
same air waybill, the total weight of such package or packages shall also be
taken into consideration in determining the limit of liability of the carrier.

    (3) The liability of the carrier for carry-on baggage of a passenger is
limited to 332 units of account per passenger.

    Article 130  Any provision tending to relieve the carrier of the
liability prescribed or to fix a lower limit than that which is laid down in
this Law shall be null and void, but the nullity of any such provision shall
not involve the nullity of the whole contract of transport by air.

    Article 131  Any action for damage occurred in air transport, however
founded, can only be brought subject to the conditions and limits of
liability set out in this Law, without prejudice to the question as to who
are the persons who have the right to bring suit and what are their
respective rights.

    Article 132  The carrier shall not be entitled to avail himself of the
provisions of Articles 128 and 129 of this Law concerning the limit of
liability if it is proved that the damage in the air transport resulted from
an act or omission of the carrier, his servants or agents, done with intent
to cause damage or recklessly and with knowledge that damage would probably
result; provided that, in the case of such act or omission of a servant or
agent of the carrier, it is also proved that he was acting within the scope
of his employment.

    Article 133  If an action is brought against a servant or agent of the
carrier arising out of damage during air transport, such servant or agent,
if proves that he acted within the scope of his employment, shall be entitled
to avail himself of the limits of liability as provided in Articles 128 and
129 of this Law.

    The aggregate of the amounts recoverable from the carrier, his servants
and agents, in the case provided in the preceding paragraph, shall not exceed
the legal limits of liability.

    The provisions of paragraphs 1 and 2 of this Article shall not apply if
it is proved that the damage in air transport resulted from an act or
omission of the servant or agent of the carrier done with intent to cause
damage or recklessly and with knowledge that damage would probably result.

    Article 134  Receipt by the passenger of checked baggage or receipt of
cargo by the consignee without complaint shall be prima facie evidence that
the same have been delivered in good condition and in accordance with the
document of transport.

    In the case of damage to checked baggage or cargo, the passenger or
consignee must complain to the carrier forthwith after the discovery of the
damage, and at the latest, within seven days from the date of receipt in the
case of checked baggage and fourteen days from the date of receipt in the
case of cargo. In the case of delay the complaint must be made at the latest
within twenty-one days from the date on which the checked baggage or cargo
have been placed at the disposition of the passenger or consignee.

    Every complaint must be made in writing upon the document of transport or
by separate notice dispatched within the times prescribed in the preceding
paragraph.

    Falling complaint within the times provided in paragraph 2 of this
Article, the passenger or consignee will be deprived of the right to claim
compensation from the carrier, save in the case of fraud on the part of the
carrier.

    Article 135  The time for bringing up an action concerning air transport
is limited to two years, reckoned from the date of arrival of civil aircraft
at the destination, or from the date on which the civil aircraft ought to
have arrived, or from the date on which the transport stopped.

    Article 136  In the case of transport to be performed by various
successive carriers, each carrier who accepts passengers, baggage or cargo
shall be subject to the rules set out in this Law, and shall be deemed to be
one of the contracting parties to the contract of transport in so far as that
part of the transport is concerned which it performed by it in accordance
with the contract.

    In the case of transport of this nature, the passenger or his successor
can take action only against the carrier who performed the part of transport
during which the accident or the delay occurred, save in the case where, by
express agreement, the first carrier shall assume liability for the whole
journey.

    as regards checked baggage or cargo, the passenger or shipper shall have
the right of action against the first carrier, and the passenger or consignee
shall have the right of action against the last carrier, and further, each
may take action against the carrier who performed the part of transport
during which the destruction, loss, damage, or delay took place. These
carriers shall be jointly and severally liable to the passenger or to the
shipper or consignee.

    Section 4  Special Provisions Governing Air Transport Performed by Actual
Carrier

    Article 137  "Contracting carrier" referred to in this Section means any
person who has concluded a contract of transport by air subject to the
regulations of this Chapter in his own name with a passenger or a shipper,
or with the agent of a passenger or of a shipper.

    "Actual carrier" referred to in this Section means any person to whom the
performance of the whole or part of the transport referred to in the
preceding paragraph has been authorized by the contracting carrier, and who
is not the successive carrier as provided in this Chapter; In the absence of
a proof to the contrary, such authorization is deemed to be in existence.

    Article 138  Both the contracting carrier and the actual carrier shall,
except as otherwise provided in this Section, be subject to the rules of this
Chapter. The contracting carrier shall be responsible for the whole of the
transport contemplated in the contract. The actual carrier shall be
responsible for the transport which he performs.

    Article 139  The acts and omissions of an actual carrier and of his
servants and agents acting within the scope of there employment shall, in
relation to the transport performed by the actual carrier, be deemed to be
also those of the contracting carrier.

    The acts and omissions of the contracting carrier and of his servants and
agents acting within the scope of their employment shall, in relation to the
transport performed by the actual carrier, be deemed to be also those of the
actual carrier. Nevertheless, no such act or omission shall subject the
actual carrier to liability exceeding the legal limits.

    Any special agreement under which the contracting carrier concerned
assumes obligations not imposed by this Chapter or waives the rights
conferred by this Chapter or any special declaration of interest in delivery
at destination contemplated in Articles 128 and 129 of this Law, shall not
affect the actual carrier unless agreed by him.

    Article 140  Any claim to be made or order to be given under the
provisions of this Chapter shall have equal effect whether addressed to the
contracting carrier or to the actual carrier. Nevertheless, orders referred
to in Article 119 of this Law shall only be effective if addressed to the
contracting carrier.

    Article 141  In relation to the transport performed by the actual
carrier, any servant or agent of that carrier or of the contracting carrier
shall, if he proves that he acted within the scope of his employment, be
entitled to avail himself of the provisions of Articles 128 and 129 of this
Law concerning the limits of liability, unless he acted in a manner which,
under the provisions of this Law, prevents the limits of liability from being
invoked.

    Article 142  In relation to the transport performed by the actual
carrier, the aggregate of the amounts recoverable from that carrier and the
contracting carrier, and from their servants and agents acting within the
scope of their employment, shall not exceed the highest amount which could
be awarded against either the contracting carrier or the actual carrier under
this Law, but none of the persons mentioned shall be liable for a sum in
excess of the limit of liability applicable to him.

    Article 143  In relation to the transport performed by the actual carrier,
an action may be brought against that carrier or the contracting carrier, or
against both together or separately; the carrier against whom an action has
been brought shall have the right to require the other carrier to be joined in
the proceedings.

    Article 144  Except as provided in Article 143 of this Law, nothing in
this Section shall affect the rights and obligations of the two carriers
between themselves.
Chapter X  General Aviation

    Article 145  "General aviation" means civil aviation operations other than
public air transport with civil aircraft, including aerial work in the fields
of industry, agriculture, forestry, fishery and building industry, and flight
operations in the fields of medical and health work, emergency and disaster
relief, meteorological service, ocean monitoring, scientific experiment,
education and training, culture and sports.

    Article 146  The operation of general aviation shall satisfy the following
conditions:

    (1) The availability of civil aircraft suitable to the general aviation
activities to be operated and conforming to the requirements of ensuring
flight safety;

    (2) The availability of necessary airmen who have been issued licences
according to law;

    (3) Other conditions conforming to the provisions of laws and
administrative rules and regulations.

    The operation of general aviation for commercial purposes is limited to
corporate enterprise.

    Article 147  Those engaged in general aviation operations not for
commercial purposes shall register with the competent civil aviation authority
under the State Council.

    Those engaged in general aviation operations for commercial purposes shall
apply to the competent civil aviation authority under the State Council for
general aviation operating licences, and register with the department of
industrial and commercial administration according to law; no registration
shall be performed by the department of industrial and commercial
administration for those failed to obtain operating licence.

    Article 148  A general aviation enterprise engaged in general aviation
operations for commercial purposes shall enter into agreement in writing with
users with the exception of rescue or disaster relief operations under
emergent circumstances.

    Article 149  In organizing and carrying out aerial work, effective
measures shall be taken to ensure flight safety, protect environment and
ecological balance and prevent damage to be caused to environment, residents,
crops or livestock.

    Article 150  Those engaged in general aviation operations shall be covered
by insurance against liability for third parties on the surface.
Chapter XI  Search and Rescue and Accident Investigation

    Article 151  A civil aircraft in emergency shall flash signals and report
to air traffic control unit to request for rescue; the air traffic control
unit shall notify immediately the search and rescue coordination centre. A
civil aircraft in emergency on the sea shall also flash signals to vessels and
national maritime search and rescue service.

    Article 152  Any unit or person observing or listening in to the emergency
of a civil aircraft shall immediately notify the search and rescue
coordination centre concerned, the maritime search and rescue service
concerned or the local People's Government.

    Article 153  Upon receiving the notification, the search and rescue
coordination centre, the local People's Government and the maritime search and
rescue service shall immediately organize the search and rescue operation.

    The search and rescue coordination centre which has received the notice
shall manage to notify the civil aircraft in emergency of the search and
rescue measures already taken.

    The specific method of searching and rescuing civil aircraft shall be
formulated by the State Council.

    Article 154  The unit or person performing search and rescue mission shall
do their best to rescue the persons carried in the civil aircraft, and take
measures to rescue the civil aircraft, protect the scene of accident and
preserve evidences according to regulations.

    Article 155  The parties to an accident of civil aircraft and persons
concerned shall, at the time of investigation, accurately reflect the
situation at the scene of accident and other information concerning the
accident.

    Article 156  The organization and procedures of the investigation of civil
aircraft accident shall be stipulated by the State Council.
Chapter XII  Liability for Damage to Third Parties on the Surface

    Article 157  Any person who suffers damage on the surface because of death
or personal injury or damage to property caused by a civil aircraft in flight
or by any person or thing falling therefrom, shall be entitled to
compensation. Nevertheless, the person suffers damage shall have no right to
compensation if the damage is not a direct consequence of the incident giving
rise thereto, or if the damage results from the mere fact of passage of the
civil aircraft through the airspace in conformity with air traffic regulations
concerned of the State.

    The expression "in flight"  mentioned in the preceding paragraph means the
period beginning from the moment when power is applied by a civil aircraft for
the purpose of actual takeoff until the moment when the landing run ends. In
the case of a civil aircraft lighter than air, the expression "in flight"
relates to the period from the moment when it becomes detached from the
surface until it becomes again attached thereto.

    Article 158  The liability for compensation contemplated by Article 157 of
this Law shall attach to the operator of the civil aircraft.

    The expression "operator" mentioned in the preceding paragraph means the
person who was making use of the civil aircraft at the time the damage was
caused. However, if the control of the navigation of the civil aircraft was
retained by the person from whom the right to make use of the civil aircraft
was derived, whether directly or indirectly, that person shall still be
considered the operator.

    The operator shall be considered to be making use of a civil aircraft when
his servants or agents are using the civil aircraft in the course of their
employment, whether or not within the scope of their authority.

    The registered owner of the civil aircraft shall be presumed to be the
operator and shall be liable as such unless, in the proceedings for the
determination of his liability, he proves that some other person was the
operator and, in so far as legal procedures permit, takes appropriate measures
to make that other person a party in the proceedings.

    Article 159  If a person makes use of a civil aircraft without the consent
of the person entitled to its navigational control and caused a damage to
third parties on the surface, the latter, unless he proves that he has
exercised due care to prevent such use, shall be jointly and severally liable
with the unlawful user.

    Article 160  Any person who would otherwise be liable under the provisions
of this Chapter shall not be liable if the damage is the direct consequence of
armed conflict or civil disturbance.

    Any person who would otherwise be liable under the provision of this
Chapter shall not be liable if such person has been deprived of the right to
use the civil aircraft by the public authority according to law.

    Article 161  Any person who would otherwise be liable under the provisions
of this Chapter shall be exonerated from the liability for damage if he proves
that the damage was caused solely by the fault of the person who suffers the
damage or of the latter's servants or agents. If the person liable proves that
the damage was contributed to by the fault of the person who suffers the
damage, or of his servants or agents, the compensation shall be reduced to the
extent to which such fault contributed to the damage. Nevertheless, there
shall be no such exoneration or reduction if, in the case of the fault of a
servant or agent, the person who suffers the damage proves that his servant or
agent was acting outside the scope of his authority.

    Where an action is brought by one person to recover the damage arising
from the death or injury of another person, and the damage was caused by the
fault of such other person, or of his servants or agents, the provisions of
the preceding paragraph apply.

    Article 162  When two or more civil aircraft have collided or interfered
with each other in flight and damage for which a right to compensation as
contemplated in Article 157 of this Law results, or when two or more civil
aircraft have jointly caused such damage, each of the civil aircraft concerned
shall be considered to have caused the damage and the operator of each civil
aircraft shall be liable.

    Article 163  The persons referred to in paragraph 4 of Article 158 and
Article 159 of this Law shall be entitled to all defences which are available
to an operator under the provisions of this Chapter.

    Article 164  Neither the operator, the owner, any person liable under
Article 159 of this Law, nor their respective servants or agents, shall be
liable for damage on the surface caused by a civil aircraft in flight or any
person or thing falling therefrom otherwise than as expressly provided in this
Chapter, except any such person who has caused the damage deliberately.

    Article 165  Nothing in this Chapter shall prejudice the question whether
a person liable for damage in accordance with its provisions has a right of
recourse against any other person.

    Article 166  The operator of a civil aircraft shall be covered by
insurance against liability for third parties on the surface or obtain
corresponding guarantee.

    Article 167  The insurer or the guarantor may, in addition to the defences
available to the operator, and the defence of forgery, set up only the
following defences against claims brought up in accordance with the provisions
of this Chapter:

    (1) That the damage occurred after the insurance or guarantee ceased to be
effective. However, if the insurance or guarantee expires during a flight, it
should be continued in force until the next landing specified in the flight
plan, but no longer than twenty-four hours;

    (2) That the damage occurred outside the territorial limits provided by
the insurance or guarantee, unless flight outside of such limits was caused by
force majeure, assistance justified by the circumstances or an error in
piloting, operation or navigation.

    The continuation in force of the insurance and guarantee under the
provisions of the preceding paragraph shall apply only for the benefit of the
person suffering damage.

    Article 168  Without prejudice to any right of direct action which the
person suffering damage may have under the law governing the contract of
insurance or guarantee, such person may bring a direct action against the
insurer or guarantor only in the following cases:

    (1) Where the insurance or guarantee is continued in force under the
provisions of sub-paragraphs (1) and (2) of Article 167 of this Law,

    (2) The bankruptcy of the operator.

    Excepting the defences specified in paragraph 1 of Article 167 of this
Law, the insurer or guarantor may not, with respect to direct actions brought
by the person suffering damage in accordance with the provisions of this
Chapter, avail himself of any ground of nullity of the insurance or guarantee
or any right of retroactive cancellation in setting up defences.

    Article 169  If insurance or guarantee is furnished in accordance with
Article 166 of this Law, it shall be specifically and preferentially assigned
to payment of claims under this Chapter.

    Article 170  Any sum due to an operator from an insurer shall be exempt
from seizure and execution by creditors of the operator until claims of third
parties under this Chapter have been satisfied.

    Article 171  Actions concerning indemnity for damage to third parties on
the surface shall be subject to a period of limitation of two years from the
date of the incident which caused the damage; but in any case such period
shall not go beyond a period of three years from the date of the incident
which caused the damage.

    Article 172  The provisions of this Chapter shall not apply to the
following damages:

    (1) The damage caused to a civil aircraft in flight, or to persons or
cargo on board such aircraft;

    (2) The damage which is regulated either by a contract between the person
who suffers such damage and the operator or the person entitled to use the
civil aircraft at the time the damage occurred, or by the law relating to
workman's compensation applicable to a contract of employment between such
persons;

    (3) Nuclear damage.
Chapter XIII  Special Provisions Governing Foreign Civil Aircraft

    Article 173  The provisions of this Chapter are applicable to foreign
civil aircraft operated by foreigners and engaged in civil aviation activities
in the territory of the People's Republic of China; where no provisions are
available in this Chapter, other provisions concerned in this Law shall apply.

    Article 174  A foreign civil aircraft may enter or leave the airspace of
the People's Republic of China, and operate or land in the territory of the
People's Republic of China only in accordance with the air transport agreement
concluded between the Government of the People's Republic of China and the
government of the State in which the aircraft is registered, or in accordance
with the approval or clearance of the competent civil aviation authority under
the State Council of the People's Republic of China.

    If a foreign civil aircraft, not conforming to the provisions of the
preceding paragraph, is entering or leaving the airspace of the People's
Republic of China without authorization, the authorities concerned of the
People's Republic of China have the right to take necessary measures to order
the aircraft to land at a designated airport; if there is reasonable ground to
deem that it is necessary to make an inspection of a foreign civil aircraft
which operates in conformity with the provisions of the preceding paragraph,
the authorities concerned have the right to order the aircraft to land at a
designated airport.

    Article 175  The operator of a foreign civil aircraft entering the
airspace of the People's Republic of China shall furnish relevant
certificate(s) to prove that he has been covered by insurance against
liability for third parties on the surface, or obtained corresponding
guarantee; where the operator fails to furnish the relevant certificate(s),
the competent civil aviation authority under the State Council of the People's
Republic of China has the right to refuse him to operate into the airspace of
the People's Republic of China.

    Article 176  The operator of a foreign civil aircraft may operate the
international scheduled air services specified in the air transport agreement
concluded between the Government of the People's Republic of China and his own
government only after he has been designated by his own government and
obtained the operating licence issued by the competent civil aviation
authority under the State Council of the People's Republic of China; the
operator of a foreign civil aircraft may operate non-scheduled air transport
between a place in the territory of the People's Republic of China and a place
without said territory only after he has been approved by his own government
and by the competent civil aviation authority under the State Council of the
People's Republic of China.

    The operator of foreign civil aircraft mentioned in the preceding
paragraph shall, in accordance with the provisions of the laws and
administrative rules and regulations of the People's Republic of China,
formulate corresponding plan of security and submit to the competent civil
aviation authority under the State Council of the People's Republic of China
for the record.

    Article 177  No operator of foreign civil aircraft shall operate the air
transport between two points in the People's Republic of China.

    Article 178  The flight of a foreign civil aircraft shall be conducted in
accordance with the timetable or flight plan approved by the competent civil
aviation authority under the State Council of the People's Republic of China;
approval of the competent civil aviation authority under the State Council of
the People's Republic of China shall be obtained by the operator in respect of
any change in timetable or flight plan; the operator shall report in time to
the competent civil aviation authority under the State Council of the People's
Republic of China in respect of any change or cancellation of flight.

    Article 179  A foreign civil aircraft shall take off or land at a customs
airport designated by the competent civil aviation authority under the State
Council of the People's Republic of China.

    Article 180  The competent civil aviation authority under the State
Council of the People's Republic of China and other competent authorities
shall have the right to inspect the documents specified in Article 90 of this
Law of a foreign civil aircraft on its landing or departure.

    Foreign civil aircraft and the persons, baggage and cargo carried therein
shall be subject to entry, exit, customs, quarantine and other inspections
exercised by the competent authorities concerned of the People's Republic of
China according to Law.

    In exercising the inspections prescribed in the two preceding paragraphs,
undue delay shall be prevented.

    Article 181  The civil aircraft certificates of airworthiness and
certificates of competency and licences of crew members issued or rendered
valid by the State in which the nationality of a foreign civil aircraft is
registered, shall be recognized as valid by the Government of the People's
Republic of China, provided that the requirements under which such
certificates or licences were issued or rendered valid shall be equal to or
above the minimum standards established by the International Civil Aviation
Organization.

    Article 182  In the event that a foreign civil aircraft is in emergency
within the search and rescue area of the People's Republic of China, the
participation of its owner or of the State in which the nationality of the
aircraft is registered shall be subject to the approval of the competent civil
aviation authority under the State Council of the People's Republic of China
or in accordance with the agreement between the governments of the two States.

    Article 183  In the event of an accident occurred to a foreign civil
aircraft in the territory of the People's Republic of China, the State in
which the nationality of the aircraft is registered or other States concerned
may appoint observers to take part in accident investigation. The report of
accident investigation and findings in the matter shall be communicated by the
competent civil aviation authority under the State Council of the People's
Republic of China to the State in which the nationality of such civil aircraft
is registered and other States concerned.
Chapter XIV  Application of Law to Foreign-related Matters

    Article 184  Where the provisions of an international treaty concluded or
participated by the People's Republic of China are different from those of
this Law, the provisions of that international treaty shall apply, except the
provisions for which reservation has been declared by the People's Republic of
China.

    In respect of cases which are not provided by the law of the People's
Republic of China or by the international treaties concluded or participated
by the People's Republic of China, international practices may apply.

    Article 185  The law of the State in which the nationality of a civil
aircraft is registered shall be applicable to the acquisition, transference
and extinction of the ownership of the civil aircraft.

    Article 186  The law of the State in which the nationality of a civil
aircraft is registered shall be applicable to the mortgage of the civil
aircraft.

    Article 187  The law of the location of the court which takes up the case
shall be applicable to civil aviation liens.

    Article 188  The parties to a contract of civil air transport may choose
the law applicable to the contract unless otherwise provided by law. In case
the parties to the contract have made no such choice, the law of the State
most closely related to the contract shall apply.

    Article 189  The law of the place where an act of tort occurred shall be
applicable to indemnity for damage caused by a civil aircraft to third parties
on the surface.

    The law of the location of the court which takes up the case shall be
applicable to the indemnity for damage caused by civil aircraft over the high
seas to third parties on the surface.

    Article 190  The application of foreign laws or international practices in
accordance with the provisions of this Chapter shall in no way violate the
public interest of the People's Republic of China.
Chapter XV  Legal Liability

    Article 191  Where a person seized an aircraft by violence, threats or
other means, his criminal responsibility shall be investigated in accordance
with the Decision on Punishing the Criminal Who Seized an Aircraft.

    Article 192  Where a person endangers flight safety by using violence
against a person on board a civil aircraft in flight, but without resulting in
serious consequences, his criminal responsibility shall be investigated in
accordance with the provisions of Article 105 of the Criminal Law; if grave
consequences result from such act, his criminal responsibility shall be
investigated in accordance with the provisions of Article 106 of the Criminal
Law.

    Article 193  A person who, in violation of the provisions of this Law,
conceals and brings explosives, detonators or other dangerous articles while
flying in a civil aircraft, or consigns dangerous articles for shipment under
the name of non-dangerous articles, but without resulting in serious
consequences, shall be investigated for his criminal responsibility in the
light of the provisions of Article 163 of the Criminal Law; if grave
consequences result from such crime, his criminal responsibility shall be
investigated in accordance with the provisions of Article 110 of the Criminal
Law.

    An enterprise or institution which commits the crime prescribed in the
preceding paragraph shall be subject to a fine, and criminal responsibilities
shall be investigated against the person in charge directly responsible and
other personnel directly responsible for the crime in accordance with the
provisions of the preceding paragraph.

    A person who conceals and brings firearms, ammunition and cutting tools
subject to control while flying in a civil aircraft shall be investigated for
his criminal responsibility in the light of the provisions of Article 163 of
the Criminal Law.

    Article 194  Where a public air transport enterprise carries dangerous
articles in violation of the provisions of Article 101 of this Law, the
competent civil aviation authority under the State Council shall confiscate
its unlawful earnings and may also impose a fine of not more than 100% of the
unlawful earnings.

    Where a public air transport enterprise commits an act described in the
preceding paragraph and thereby creates a serious accident, its unlawful
earnings shall be confiscated and a fine shall be imposed; and criminal
responsibilities shall be investigated against the person in charge directly
responsible and other personnel directly responsible for the crime in
accordance with the provisions of Article 115 of the Criminal Law.

    Article 195  A person who deliberately places or instigates another person
to place dangerous articles on board a civil aircraft in use, sufficient to
destroy the civil aircraft and endanger flight safety but without resulting in
serious consequences, shall be investigated for his criminal responsibility in
accordance with the provisions of Article 107 of the Criminal Law; if grave
consequences result from such crime, criminal responsibility shall be
investigated in accordance with the provisions of Article 110 of the Criminal
Law.

    Article 196  A person who deliberately transmits false information and
disturbs the normal order of flight, resulting in serious losses to public and
private property, his criminal responsibility shall be investigated in
accordance with the provisions of Article 158 of the Criminal Law.

    Article 197  A person who steals or deliberately damages or removes
navigational facilities in use and thereby creates danger to flight safety,
sufficient to cause the fall or destruction of the civil aircraft but without
resulting in serious consequences, his criminal responsibility shall be
investigated in accordance with the provisions of Article 108 of the Criminal
Law; if grave consequences result from such crime, criminal responsibility
shall be investigated in accordance with the provisions of Article 110 of the
Criminal Law.

    Article 198  A person who assembles a crowd to disturb the order in a
civil airport shall be investigated for his criminal responsibility in
accordance with the provisions of Article 159 of the Criminal Law.

    Article 199  Where an airman neglects his duty or violates the rules and
regulations, and thereby creates a serious flight accident resulting in grave
consequences, his criminal responsibility shall be investigated in accordance
with or in the light of the provisions of Article 187 or of Article 114 of the
Criminal Law respectively.

    Article 200  A person who violates the provisions of this Law not
seriously enough for criminal punishment but should be subject to security
administration punishment, shall be punished in accordance with the provisions
of the Security Administration Punishment Act.

    Article 201  Where in violation of the provisions of Article 37 of this
Law, a civil aircraft flies without the certificate of airworthiness, or a
foreign civil aircraft on lease flies without having its certificate of
airworthiness, issued by the State in which the nationality of the aircraft
was originally registered, examined and rendered by the competent civil
aviation authority under the State Council, or without having a new
certificate of airworthiness issued therefor by the said authority, the
competent civil aviation authority under the State Council shall order it to
stop flying, confiscate the unlawful earnings, and may also impose a fine of
more than 100% but not exceeding 500% of the unlawful earnings; in case there
is no unlawful earnings, a fine of more than 100,000 yuan but not exceeding
1,000,000 yuan shall be imposed.

    Where a certificate of airworthiness has lost its effect or a flight was
conducted beyond the scope prescribed in the certificate of airworthiness, the
punishment prescribed in the preceding paragraph shall apply.

    Article 202  Where a person, in violation of the provisions of Article 34
and paragraph 2 of Article 36 of this Law, carries out the production of civil
aircraft and its engines, propellers or on-board equipment without obtaining
type certificate and type validation certificate, the competent civil aviation
authority under the State Council shall order him to stop such production,
confiscate his unlawful earnings and may also impose on him a fine of not more
than 100% of his unlawful earnings; in case there is no unlawful earnings, a
fine of more than 50,000 yuan but not exceeding 500,000 yuan shall be imposed.

    Article 203  Where a person, in violation of the provisions of Article 35
of this Law, is engaged in the activities of production and maintenance
without obtaining production certificate and maintenance certificate or, in
violation of the provisions of Article 92 and paragraph 2 of Article 147 of
this Law, is engaged in public air transport or general aviation operations
for commercial purposes without obtaining a public air transport operating
licence or a general aviation operating licence, the competent civil aviation
authority under the State Council shall order him to stop such production,
maintenance or operations.

    Article 204  Where an enterprise having obtained the production
certificate and maintenance certificate prescribed in Article 35 of this Law
creates a serious accident because of the problem in the quality of production
and maintenance, the competent civil aviation authority under the State
Council may cancel its production certificate or maintenance certificate.

    Article 205  Where a person, in violation of the provisions of Article 40
of this Law, is engaged in civil aviation activities without obtaining the
corresponding airman's licence and physical examination certificate, the
competent civil aviation authority under the State Council shall order him to
stop such activities, no such licence and certificate shall be issued within
the time limit prescribed by the competent civil aviation authority under the
State Council, and a fine of not more than 200,000 yuan shall be imposed on
the unit the person belongs to.

    Article 206  In one of the following circumstances in which the law is
violated, the competent civil aviation authority under the State Council shall
punish the pilot-in-command by warning or by withholding his licence for a
period of one to six months, or under aggravating circumstances, punish him by
cancelling his licence:

    (1) The pilot-in-command, in violation of the provisions of paragraph 1 of
Article 45 of this Law, takes off without carrying out an inspection of the
civil aircraft;

    (2) A civil aircraft, in violation of the provisions of Article 75 of this
Law, fails to follow the air route and fly at the altitude specified by the
air traffic unit, or in violation of the provisions of Article 79 of this Law,
flies across the airspace over a city.

    Article 207  Where a civil aircraft, in violation of the provisions of
Article 74 of this Law, conducts flight activities without the approval of the
air traffic control unit, the competent civil aviation authority under the
State Council shall order it to stop flying, and impose a fine on the owner or
lessee of the civil aircraft of more than 10,000 yuan but not exceeding
100,000 yuan; and punish the pilot-in-command of the civil aircraft by warning
or by withholding his licence for a period of one to six months, or under
aggravating circumstances, punish him by cancelling his licence.

    Article 208  Where the pilot-in-command of a civil aircraft or another
member of the crew commits one of the following acts, the competent civil
aviation authority under the State Council shall punish him by warning or by
withholding his licence for a period of one to six months; if the act listed
in sub-paragraph (2) or (3) is committed, he shall be punished by having his
licence cancelled:

    (1) Failure to carry on his person licence and physical examination
certificate in performing a flight mission as required by the provisions of
Article 41 of this Law;

    (2) Leaving the civil aircraft in distress in violation of the provisions
of Article 48 of this Law;

    (3) Performing a flight mission in violation of the provisions of
paragraph 2 of Article 77 of this Law.

    Article 209  Where some articles are dropped or sprayed from a civil
aircraft in flight in violation of the provisions of Article 80 of this Law,
the competent civil aviation authority under the State Council shall give a
warning, and may impose a fine of more than 2,000 yuan but not exceeding
20,000 yuan on the person directly responsible.

    Article 210  Where a civil airport is opened to traffic without obtaining
an airport operating licence in violation of the provisions of Article 62 of
this Law, the competent civil aviation authority under the State Council shall
order it to stop its opening to traffic, confiscate its unlawful earnings, and
may impose a fine of not exceeding 100% of the unlawful earnings.

    Article 211  Where a public air transport enterprise or a general aviation
enterprise violates the provisions of this Law, in circumstances of a serious
nature, the competent civil aviation authority under the State Council may, in
addition to the punishment prescribed by this Law, cancel its operating
licence. If the operating licence of such enterprise is cancelled, the
department of industrial and commercial administration shall cancel its
business licence.

    Article 212  The working personnel of the competent civil aviation
authority under the State Council and of regional civil aviation
administrative organs, who neglect their duties, abuse their power, practise
favouritism and embezzlement and constitute a criminal act, shall be
investigated for their criminal responsibilities according to law; those have
not yet constituted a criminal act shall be subject to disciplinary sanction
according to law.
Chapter XVI  Supplementary Provisions

    Article 213  "Unit of account" mentioned in this Law refers to the Special
Drawing Right as defined by the International Monetary Fund; its equivalent in
Reminbi shall be the amount calculated in terms of the conversion rate from
the Special Drawing Right of the International Monetary Fund to Reminbi as
prescribed by the competent State foreign exchange authority at the date of
the judgement of the court, the date of the award of arbitration agency or the
date agreed between the parties concerned.

    Article 214  This Law shall go into effect from March 1, 1996.


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