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SPC Issues Judicial Interpretation to Regulate Hearing Over Sea Freight Forwarding Disputes

On March 18, the Supreme People's Court ("SPC") promulgated the "Provisions on Issues Relating to Hearing over Sea Freight Forwarding Dispute Cases". The judicial interpretation with a total of 16 articles will come into force on May 1, 2012.

The judicial interpretation mainly adjust the right and obligation relationship between forwarding agency and its principal when forwarding agency accepts the commission to deal with forwarding matters relating to carriage of goods by sea. Meanwhile, it regulates how to accurately identify legal relationship between the parties involved. In accordance with the provisions of contract law on the commission contract, the judicial interpretation also determines that the hearing over sea freight forwarding contract disputes should take the principle of fault presumption.

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