Act on Liability for Oil Pollution Damage


Published: 2004

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Act on Liability for Oil Pollution Damage

(Act No. 95 of December 27, 1975)

Chapter I General Provisions (Article 1 and Article 2)

Chapter II Liability for Tanker Oil Pollution Damage and Limitation of

Liability (Article 3 to Article 12)

Chapter III Contract on Insurance or Other Financial Security for Tanker Oil

Pollution Damage (Article 13 to Article 21)

Chapter IV International Fund

Section 1 Claim against International Fund (Article 22 to Article 27)

Section 2 Contribution to International Fund (Article 28 to Article 30)

Chapter IV-2 Supplementary Fund (Article 30-2 and Article 30-3)

Chapter V Procedure for Limitation of Liability (Article 31 to Article 39)

Chapter VI Liability for General Ship Oil Pollution Damage and Limitation of

Liability (Article 39-2 and Article 39-3)

Chapter VII Contract on Insurance or Other Financial Security for General

Ship Oil Pollution Damage (Article 39-4 to Article 39-8)

Chapter VIII Miscellaneous Provisions (Article 40 to Article 44)

Chapter IX Penal Provisions (Article 45 to Article 50)

Chapter I General Provisions

(Purposes)

Article 1 The purpose of this Act is to make clear the liability of shipowner in

the case where oil loaded in a ship caused oil pollution damage and to establish

a system to insure and secure compensation for oil pollution damage in order to

protect the victim of the oil pollution damage as well as to contribute to sound

development of marine transportation.

(Definitions)

Article 2 In this Act, the meanings of the terms listed in the following items

shall be as prescribed respectively in those items:

(i) "Liability Convention" means the International Convention on Civil

Liability for Oil Pollution Damage, 1992.

(ii) "International Fund Convention" means the International Convention on

the Establishment of an International Fund for Compensation for Oil

Pollution Damage, 1992.

(ii)-2 "Protocol on Supplementary Fund" means the protocol of 2003 to the

International Convention on the Establishment of an International Fund for

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Compensation for Oil Pollution Damage 1992.

(iii) "Oil" means the Oil such as Crude Oil, Fuel Oil, Lubricating Oil or Other

Oil that are hard to evaporate specified by a cabinet order.

(iii)-2 "Bunker Oil" means the Oil, among Oil, that is used as fuel for an

operation of a ship.

(iv) "Tanker" means the ship for the carriage by sea of Oil in bulk.

(iv)-2 "General Ship" means the ship for the carriage by sea of freight and

other articles except passengers and Oil in bulk (except the ship that is

operated by oars or operated mainly by oars)

(v) "Tanker Owner" means the shipowner of a Tanker (the person or persons

registered as the owner of the ship pursuant to the provision of paragraph 1

of Article 5 of the Ship Law (Act No. 46 of 1899) or the provisions of foreign

laws and regulations (if there are not the person or persons registered, the

person or persons owning the ship), provided, however, as for the ship owned

by a foreign state, if there is a company or an entity registered as an

operator of the ship in that foreign state, the shipowner of a Tanker shall

mean the company or the entity that is registered as an operator. The same

shall apply to the next item.).

(v)-2 "Owner of General Ship" means the owner of a General Ship and the

lessee of a General Ship.

(v)-3 "Exclusive Economic Zone" means the Exclusive Economic Zone

(prescribed in paragraph 1 of Article 1 of the Act on Exclusive Economic Zone

and Continental Platforms (Act No.74 of 1996). The same shall apply to item

vii-2.(a) and Article 31) and the water area provided in Article 2 (a)(i) of the

Liability Convention in a foreign state contracting the Convention.

(v)-4 "Oil Pollution Damage" means Tanker Oil Pollution Damage and General

Ship Oil Pollution Damage.

(vi) "Tanker Oil Pollution Damage" means the following damage or costs:

(a) Damage caused within the territory (including territorial sea. The same

shall apply to item vii-2.(a) and item 2 of paragraph 1 of Article 39-5) of a

Contracting State of the Liability Convention or within the Exclusive

Economic Zone, etc. by the pollution (limited to the pollution by the Oil

loaded as cargo or by the Bunker Oil (including the Oil that is left in the

cargo hold and the other places in the Tanker prescribed by an ordinance of

the Ministry of Land, Infrastructure, Transport and Tourism and mixture

which is including a said Oil and which prescribed by an ordinance of the

Ministry of Land, Infrastructure, Transport and Tourism) resulting from

the escape or discharge of Oil from a Tanker (as for the Tanker capable of

carrying cargo other than Oil in bulk, it is limited to the Tanker used for

transporting Oil in bulk and while the cargo holds have not been cleaned to

the degree so that no oil may be left after they were used for transportation

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of Oil in bulk, the Tanker being used for transportation of cargo other than

Oil in bulk and the ships navigating without any cargo).

(b) A cost that is required for the reasonable measures taken to prevent or

alleviate the damage after an event causing the damage of item (a)

occurred and damage incurred as a result of taking those measures.

(vii) "Cost of Preventive Measures of Damage by Tanker Owner" means the

cost required by a Tanker Owner to voluntarily take measures prescribed in

the preceding item (b) and the damage incurred by the Tanker Owner as a

result of taking those measures.

(vii)-2 "General Ship Oil Pollution Damage" means the following damage or

costs:

(a) Damage caused by the pollution resulting from the escape or discharge of

the Bunker Oil from a General Ship within the territory or Japanese

Exclusive Economic Zone.

(b) A cost that is required for the reasonable measures taken to prevent or

alleviate the damage after an event causing the damage of item (a) and

damage incurred as a result of taking those measures.

(viii) "One Unit" means the amount of money equivalent to one Special

Drawing Right pursuant to the Special Drawing Right prescribed in

paragraph 1, Article 3 of the International Monetary Fund Agreement.

(ix) "Insurer" means the party who covers the damage of Tanker Owner in the

Contract on Insurance or Other Financial Security for Tanker Oil Pollution

Damage prescribed in this Act or insure the performance of obligations for

damages, or the party who covers the damage of Owner of General Ship in

the Contract on Insurance or Other Financial Security for General Ship Oil

Pollution Damage prescribed in this Act or insure the performance of

obligations for damages and payment of costs.

(x) "International Fund" means the International Oil Pollution Compensation

Fund, 1992 prescribed in paragraph 1, Article 2 of the International Fund

Convention.

(x)-2 "Supplementary Fund" means the International Oil Pollution

Compensation Supplementary Fund, 2003 prescribed in paragraph 1, Article

2 of the Protocol on Supplementary Fund.

(xi) "Limited Claim" means the claim for which the Tanker Owner or Insurer

pertaining to the Contract on Insurance or Other Financial Security for

Tanker Oil Pollution Damage prescribed in this Act may limit the liability

pursuant to the provision of this Act.

(xii) "Beneficiary Debtor" means the debtor pertaining to the Limited Claim in

the relevant procedure for limitation of liability and other than those who

made an application for commencement of the procedure for limitation of

liability.

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Chapter II Liability for Tanker Oil Pollution Damage and Limitation of

Liability

(Liability for Tanker Oil Pollution Damage)

Article 3 (1) When Tanker Oil Pollution Damage occurred, the Tanker Owner of

the Tanker in which the Oil pertaining to the said Tanker Oil Pollution

Damage was loaded shall be responsible for compensation for the damage,

provided, however, that this shall not apply if the said Tanker Oil Pollution

Damage falls under any of the following items:

(i) Damage was caused by war, civil war or insurrection.

(ii) Damage was caused by an abnormal natural disaster.

(iii) Damage was solely caused knowingly by the person other than the said

Tanker owner or his/her employees.

(iv) Damage was solely caused by a defect in the management of the aids to

navigation or the signal facilities for traffic control by the state or a public

entity.

(2) In the case Tanker Oil Pollution Damage occurred by the Oil loaded in two or

more Tankers, if it is impossible to determine which of the oil loaded in the

Tanker caused the said Tanker Oil Pollution Damage, respective Tanker

Owners shall be responsible for compensation of the damage jointly and

severally, provided, however, that this shall not apply if the said Tanker Oil

Pollution Damage falls under any of the items in the preceding paragraph.

(3) The Tanker Owner prescribed in the preceding two paragraphs shall be the

Tanker Owner at the time the first event resulting in the Tanker Oil Pollution

Damage occurred.

(4) In the case of the main clause of paragraph 1 or the main clause of paragraph

2, the persons listed in the following shall not be responsible for the damages,

provided, however, that this shall not apply if the said Tanker Oil Pollution

Damage was intentionally caused by any of these persons or caused by a

reckless act by any of these persons knowing that the act may result in damage.

(i) A employees of the Tanker Owner of the said Tanker.

(ii) A ship lessee of the said Tanker and its employees.

(iii) Any charterer of the said tanker prescribed in paragraph 4.(c), Article 3 of

the Liability Convention (except the lessee), manager or operator and the

employees of them.

(iv) A person who undertakes rendering services pertaining to the Tanker such

as repair of Tanker and the employees of them.

(v) A person who renders services directly relating to life saving or rescue of

cargo or the tanker with consent of the Tanker Owner or pursuant to the

instructions of administrative agencies, and the employees of them.

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(vi) A person who takes measures prescribed in item 6.(b) of Article 2 (except

the Tanker Owner of the said tanker) and the employees of them.

(5) The provision set forth in the preceding paragraph shall not preclude Tanker

Owner who compensated the damages from exercising any right recourse of the

Tanker Owner to claim against a third party.

(Taking into Consideration concerning Compensation)

Article 4 If the Tanker Oil Pollution Damage was caused by the intention or the

negligence of the victim, the court may take them into consideration in

determining the liability and the sum of the damages.

(Limitation of Liability of Tanker Owner)

Article 5 The Tanker Owner (including members with unlimited liability of the

Tanker Owner as a juridical person. The same shall apply hereinafter) who is

responsible for compensation of the Tanker Oil Pollution Damage pursuant to

the provision of paragraph 1 or paragraph 2 of Article 3 may limit the liability

concerning the claim based on the said Tanker Oil Pollution Damage pursuant

to the provisions of this Act, provided, however, that this shall not apply if the

said Tanker Oil Pollution Damage was intentionally caused by the Tanker

Owner himself/herself or caused by a reckless act by the Tanker Owner

himself/herself knowing that the act may result in damage.

(Amount of Limit of Liability)

Article 6 The limit of amount of liability in the case the Tanker Owner may

restrict the liability (referred to as "Amount of Limit of Liability" in paragraph

3 of Article 14 and Article 38) shall be the amount of money calculated as

prescribed in the following pro rata to the tonnage of the Tanker.

(i) For the Tanker which are 5,000 tons or less, the amount of money of

4,510,000 times of One Unit.

(ii) For the Tanker which exceed 5,000 tons, the amount of money obtained by

adding the amount of 631 times of One Unit for the portion of tonnage

exceeding 5,000 tons to the amount of the money of the preceding paragraph

(in the case the amount exceeds an amount of 89,770,000 times of One Unit,

the amount of money shall be 89,770,000 times of One Unit.).

(Calculation of Tonnage of Tanker)

Article 7 The tonnage of the Tanker in the preceding Article shall be expressed

in the figure calculated pursuant to an example prescribed in paragraph 2,

Article 4 of the Law on Tonnage Measurement of Ships (Act No. 40 of 1980)

with the word "tons" added (hereinafter referred to as "Gross Tonnage").

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(Extent of Limitation of Liability)

Article 8 The limitation of liability of the Tanker Owner shall extend to all the

Limited Claim resulted from the same accident for each of the relevant Tanker

against the Tanker Owner and Insurer pertaining to the said Tanker.

(Ratio of Payment that the Claimant of the Limited Claim Receives)

Article 9 When a Tanker Owner limited its liability, the Claimant of the Limited

Claim may receive payment pro rata to the ratio of the sum of its Limited

Claim.

(Extinguishment of Right)

Article 10 The right to demand compensation for damages against the Tanker

Owner pursuant to the provisions of paragraph 1 or paragraph 2 of Article 3

becomes extinct unless a judicial claim is filed within 3 years from the date

when the Tanker Oil Pollution Damage occurred. The same shall apply when a

judicial claim is not filed within 6 years from the date when the first event

causing the said Tanker Oil Pollution Damage.

(Jurisdiction of Tanker Oil Pollution Claim Case)

Article 11 As for the lawsuit against the Tanker Owner pursuant to the

provisions of paragraph 1 or paragraph 2 of Article 3, if a court with

jurisdiction is not prescribed by other acts, the lawsuit shall belong to the court

of the venue that the Supreme Court provides.

(Effect of Foreign Judgment)

Article 12 (1) The final and binding judgment that a foreign court which has

jurisdiction pursuant to paragraph 1 of Article 9 of the Liability Convention

made on a lawsuit for demanding compensation for Tanker Oil Pollution

Damage shall be in force and effective except the cases listed in the following:

(i) In the case the said judgment was obtained through fraud.

(ii) In the case a defendant did not receive the transmittal of a summons or an

order required for the commencement of a lawsuit and was not given a fair

opportunity to state his/her assertion.

(2) As for the judgment for execution concerning the final and binding judgment

prescribed in the preceding paragraph, the expression that "when the

requirements listed in the respective items of Article 108 of the Act on Civil

Suit are not met" prescribed in paragraph 3 of Article 24 of the Civil Execution

Act (Act No, 4 of 1979) shall read as "when it falls under any of the items in

paragraph 1, Article 12 of the Act on Liability for Ship Oil Pollution Damage".

Chapter III Contract on Insurance or Other Financial Security for Tanker

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Oil Pollution Damage

(Compulsive Contract on Insurance or Other Financial Security)

Article 13 (1) A Tanker with Japanese nationality shall not carry more than

2,000 tons of oil in bulk unless they make a Contract on Insurance or Other

Financial Security for Tanker Oil Pollution Damage (hereinafter in this

Chapter referred to as simply "Contract on Insurance or Other Financial

Security ").

(2) A tanker except those prescribed in the preceding paragraph shall not enter

or leave the ports in Japan or use the mooring facilities in Japan, loaded with

more than 2,000 tons of Oil in bulk, unless they make a Contract on Insurance

or Other Financial Security for them.

(Contract on Insurance or Other Financial Security)

Article 14 (1) A Contract on Insurance or Other Financial Security shall be an

insurance contract to cover the damages incurred by the said Tanker Owner by

the performance of its obligations for damages or a contract to secure the

performance of its obligations for damages in the case the Tanker Owner of a

Tanker (except those used for transportation of 2,000 tons or less of Oil in

bulk) is responsible for compensation for the damage caused by the Oil loaded

in the said Tanker.

(2) For the Contract on Insurance or Other Financial Security, the party who

covers the damage of the Tanker Owner or the party who secures the

performance of the obligations for damages in that Contract shall be the party

such as shipowners' mutual protection and indemnity association, insurance

company or other entity specified by a cabinet order.

(3) For the Contract on Insurance or Other Financial Security, the amount

insured to cover the damage of the Tanker Owner in the said contract or the

amount of damages resulted from the Tanker Oil Pollution secured shall not be

less than the Amount of Limit of Liability of the said Tanker Owner for each

Tanker pertaining to the said contract.

(4) The Contract on Insurance or Other Financial Security must be the one that

can be made ineffective or the contents can be altered only when it comply with

the provision of paragraph 5, Article 7 of the Liability Convention.

(Claim of Damages against Insurer)

Article 15 (1) When the liability for damages of the Tanker Owner occurred

pursuant to the provision of paragraph 1 or paragraph 2 of Article 3, the victim

may claim the payment of damages against the Insurer, provided, however,

this shall not apply if the damage was caused knowingly by the Tanker Owner.

(2) In the case of the main clause of the preceding paragraph, the Insurer may

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duly assert against the victim only with the defense that the Tanker Owner

may insist on to the victim.

(3) The provisions of paragraph 5 of Article 3, the main clause of Article 5 and

the provisions of Articles 6 to Articles 10 shall apply mutatis mutandis to the

Insurer who makes the payment of damages pursuant to the provision of

paragraph 1 of this Article.

(Jurisdiction of Claim for Damages for Oil Pollution against Insurer)

Article 16 The lawsuit against the Insurer pursuant to the provision of

paragraph 1 of the preceding Article may be filed to the competent court that

has jurisdiction for the lawsuit against the Tanker Owner pursuant to the

provision of paragraph 1 or paragraph 2 of Article 3.

(Certificate of Contract on Insurance or Other Financial Security)

Article 17 (1) If there is an application by the person who has a Contract on

Insurance or Other Financial Security with the Insurer on a Tanker (except

those that have ship's nationality in a foreign state contracting the Liability

Convention) for a certificate of Insurance and Security Agreement, the

Minister of Land, Infrastructure, Transport and Tourism shall issue a

document certifying that there is a Contract on Insurance or Other Financial

Security concerning the said Tanker.

(2) The person who intends to make an application of the preceding paragraph

shall submit an application that describes the name of the ship, the type of

Contract on Insurance or Other Financial Security and other matters

prescribed by an ordinance of the Ministry of Land, Infrastructure, Transport

and Tourism to the Minister of Land, Infrastructure, Transport and Tourism.

(3) A copy of the Contract on Insurance or Other Financial Security and a

document certifying the Tanker's nationality and the gross tonnage shall be

attached to the application of the preceding paragraph.

(4) The person who received the issuance of the document prescribed in

paragraph 1 (hereinafter in this Chapter referred to as "Certificate of Contract

on Insurance or Other Financial Security") may be reissued of the Certificate of

Insurance and Security Agreement when it is lost or damaged or it became

difficult to be discerned.

(5) The person who intends to apply for issuance or reissuance of Certificate of

Contract on Insurance or Other Financial Security shall pay the fee prescribed

by an ordinance of the Ministry of Land, Infrastructure, Transport and

Tourism.

(6) Other than those prescribed by each of the preceding paragraphs, the other

requirements of the Certificate of Contract on Insurance or Other Financial

Security such as the valid period, the description, etc. shall be prescribed by an

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ordinance of the Ministry of Land, Infrastructure, Transport and Tourism.

(Change of Description of Certificate of Contract on Insurance or Other

Financial Security)

Article 18 (1) If there is any change to the description of the Certificate of

Contract on Insurance or Other Financial Security, the person who received

issuance of the said Certificate of Contract on Insurance or Other Financial

Security shall notify the Minister of Land, Infrastructure, Transport and

Tourism of the matter pertaining to the change within 15 days from the date of

the change, provided, however, this shall not apply if the said Certificate of

Contract on Insurance or Other Financial Security shall be returned pursuant

to the provision of the next article.

(2) When there is a notification of the preceding paragraph, the Minister of Land,

Infrastructure, Transport and Tourism shall issue a new Certificate of

Contract on Insurance or Other Financial Security to the person who made the

notification.

(3) In the case of the preceding paragraph, the person who made the said

notification in the preceding paragraph shall return the Contract on Insurance

or Other Financial Security in paragraph 1 to the Minister of Land,

Infrastructure, Transport and Tourism without delay.

(Return of Certificate of Contract on Insurance or Other Financial Security)

Article 19 The person who received issuance of the Certificate of Contract on

Insurance or Other Financial Security shall return the said Certificate of

Contract on Insurance or Other Financial Security to the Minister of Land,

Infrastructure, Transport and Tourism without delay if the valid period of the

Certificate of Contract on Insurance or Other Financial Security expired, or the

Contract on Insurance or Other Financial Security pertaining to the said

Certificate of Contract on Insurance or Other Financial Security ceased to be

effective or it became non-conforming to the provision of Article 14 before

expiration of the valid period of the Contract on Insurance or Other Financial

Security.

(Carrying Certificate of Contract on Insurance or Other Financial Security on

board)

Article 20 (1) A Tanker with Japanese nationality shall not carry more than

2,000 tons of Oil in bulk unless they carry the Certificate of Contract on

Insurance or Other Financial Security on board.

(2) A Tanker other than those prescribed in the preceding paragraph, shall not

enter or leave Japanese ports or use the mooring facilities in Japan loaded

with more than 2,000 tons of Oil in bulk unless it carries on board a Certificate

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of Contract on Insurance or Other Financial Security, a document in the form

of the appendix of the Liability Convention issued by a foreign state

contracting the Liability Convention certifying that there is a Contract on

Insurance or Other Security concerning the said Tanker, or a document issued

by a foreign state with the description of the Certificate of Contract on

Insurance or Other Financial Security prescribed in paragraph 12 of Article 7

of the Liability Convention.

(Exclusion from Application)

Article 21 The provisions of this Chapter (except paragraph 2 of the preceding

Article) shall not apply to the Tanker owned by a foreign state and with no

Contract on Insurance or Other Security concerning it.

Chapter IV International Fund

Section 1 Claim against International Fund

(Claim for Compensation by Victim against International Fund)

Article 22 The victim may claim to the International Fund pursuant to the

provisions of the International Fund Convention the compensation prescribed

in paragraph 1, Article 4 of the International Fund Convention concerning the

amount from tanker oil pollution damage that the victim could not receive.

Article 23 Deleted

(Intervention by International Fund)

Article 24 (1) In the case a lawsuit against the Tanker Owner pursuant to the

provision of paragraph 1 or paragraph 2 of Article 3, or a lawsuit against the

Insurer pursuant to paragraph 1 of Article 15 is pending, the International

Fund may intervene in the said lawsuit as a party.

(2) The provisions from paragraph 2 to paragraph 4, Article 47 of the Act on Civil

Suit shall apply mutatis mutandis to the case of the preceding paragraph.

(Notification of Pendency to International Fund)

Article 25 (1) In the case prescribed in paragraph 1 of the preceding Article, any

parties may notify the International Fund of the pendency.

(2) The provision of paragraph 3, Article 53 of the Act on Civil Suit shall apply

mutatis mutandis to the case of the preceding paragraph.

(Jurisdiction of Lawsuit for Claim against International Fund)

Article 26 (1) The lawsuit against the International Fund for claiming

compensation prescribed in paragraph 1, Article 4 of the International Fund

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Convention may be filed to the court which has jurisdiction for the lawsuit

against the Tanker Owner pursuant to the provision of paragraph 1 or

paragraph 2 of Article 3 (the court which has jurisdiction for the general venue

the Tanker Owner if the lawsuit is for claiming compensation only for the Cost

of Preventive Measures of Damage by Tanker Owner, or the court which has

jurisdiction of the venue determined by the Supreme Court if there is no such

court)

(2) As for the same Tanker Oil Pollution Damage, if the case against the Tanker

Owner pursuant to the provision of paragraph 1 or paragraph 2 of Article 3 or

the case against the Insurer is pending at the court of the first instance, or if

the case of limitation of liability is pending at the court, the lawsuit in the

preceding paragraph shall be under the exclusive jurisdiction of the said court.

(Force and Effect of Foreign Judgment)

Article 27 The provision of Article 12 shall apply mutatis mutandis to the final

and binding judgment made by a foreign court having jurisdiction pursuant to

the provision of paragraph 1 or paragraph 3, Article 7 the International Fund

Convention.

Section 2 Contribution to International Fund

(Report of Amounts of Specified Oil)

Article 28 (1) As for the Crude Oil or Fuel Oil specified by a cabinet order that

are discharged in Japan (hereinafter in this Section referred to as "Specified

Oil"), if the amount of Specified Oil received by a person (excluding the person

who received Specified Oil from tankers on behalf of another person, but

including the person who let another person to receive. Hereinafter referred to

as "Oil Receiver") from tankers during the previous year (including the

Specified Oil which Oil Receiver let another person receive on his/her behalf.

The same shall apply hereinafter.) exceeds 150,000 tons, the said Oil Receiver

shall report the amount of receipt to the Minister of Land, Infrastructure,

Transport and Tourism each year as prescribed by an ordinance of the Ministry

of Land, Infrastructure, Transport and Tourism.

(2) In the case there is a person who controls the business activities of the Oil

Receiver during the previous year, if the total amount of Specified Oil received

by the Oil Receiver from Tankers (if there is any Specified Oil the person who

controls received from Tankers, the amount obtained by adding that amount to

the total amount) exceeds 150,000 tons, the said person who controls shall

report the amount of receipt for each Oil Receiver to the Minister of Land,

Infrastructure, Transport and Tourism each year as prescribed by an ordinance

of the Ministry of Land, Infrastructure, Transport and Tourism. In this case,

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the preceding paragraph shall not apply to the Oil Receiver pertaining to the

report.

(3) The extent of a person who controls the business activities of the Oil Receiver

is specified by a cabinet order.

(Sending of Materials to International Fund)

Article 29 (1) When there was a report in paragraph 1 or paragraph 2 of the

preceding Article, the Minister of Land, Infrastructure, Transport and Tourism

shall prepare a document with the description prescribed in paragraph 2,

Article 15 of the International Fund Convention and send it to International

Fund pursuant to the provision of the said paragraph after having notified the

Minister of Economy Trade and Industry of the contents.

(2) When the Minister of Land, Infrastructure, Transport and Tourism sent the

document prepared pursuant to the provision of the preceding paragraph to the

International Fund, he/she shall notify Oil Receiver of the amount of Specified

Oil described in the said document.

(Contribution to International Fund)

Article 30 An Oil Receiver pertaining to the Specified Oil who should report the

amount of receipt pursuant to the provision of paragraph 1 or paragraph 2 of

Article 28 shall make payment of annual contribution prescribed in Article 10

of the International Fund Convention to the International Fund pursuant to

the provisions of Article 12 and Article 13 of the International Fund

Convention.

Chapter IV-2 Supplementary Fund

(Claim for Compensation by Victim to Supplementary Fund)

Article 30-2 The victim may claim to the Supplementary Fund pursuant to the

protocol on Supplementary Fund the compensation prescribed in paragraph 1,

Article 4 of the Protocol for Supplementary Fund for damages and the amount

of Tanker Oil Pollution Damage that the victim could not receive.

(Application Mutatis Mutandis)

Article 30-3 The provisions of the preceding chapter (except Article 22, Article

23 and Article 28) shall apply mutatis mutandis to the Supplementary Fund.

In this case, the terms of "the International Fund Convention " in paragraph 1

of Article 26, Article 27 and Article 30 shall be deemed to be replaced with "the

Protocol on Supplementary Fund", the term "paragraph 1 of the preceding

Article" in paragraph 1 of Article 25 to be replaced with "paragraph 1 of the

preceding Article that is applied mutatis mutandis in Article 30-3", the term

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"paragraph 1 or paragraph 3 of Article 7" in Article 27 to be replaced with

"Article 7", the term "paragraph 2 of Article 15 of the International Fund

Convention" to be replaced with "paragraph 2 of Article 15 of the International

Fund Convention pursuant to the provision of paragraph 1 of Article 13 of the

Protocol on Supplementary Fund", and the term "Article 12 and Article 13" to

be replaced with "Article 11 and paragraph 1 of Article 12 ".

Chapter V Procedure for Limitation of Liability

(Jurisdiction of Case of Limitation of Liability)

Article 31 As for the case of limitation of liability, if Tanker Oil Pollution

Damage occurred in Japan, the case shall belong exclusively to the jurisdiction

of the district court which has jurisdiction for the place where the said Tanker

Oil Pollution Damage occurred, and if Tanker Oil Pollution Damage occurred

in Japanese Exclusive Economic Zone, the case shall belong exclusively to the

jurisdiction of the district court which has jurisdiction for the general venue of

the Claimant of the Limited Claim or, if there is no such court, belong

exclusively to the jurisdiction of the district court determined by the Supreme

Court. If the measures prescribed in item 6.(b) of Article 2 for the purpose of

preventing the damage in Japan or in Japanese Exclusive Economic Zone are

taken outside Japan or Japanese Exclusive Economic Zone and the damage did

not occur in Japan and in Japanese Exclusive Economic Zone, the case shall

belong exclusively to the jurisdiction of the district court which has jurisdiction

for the general venue of the person who took the measures or, if there is no

such court, belong exclusively to the jurisdiction of the district court

determined by the Supreme Court.

(Transfer of Case of Limitation of Liability)

Article 32 When the court finds it is necessary for avoiding extreme damage or

delay, it may transfer, by its authority, the case of limitation of liability to

other court with jurisdiction or, the district court that has jurisdiction for the

general venue of the Claimant of the Limited Claim or the court in which the

case of limitation of liability caused by the same accident which is pending

pursuant to the provisions of Act on Limitation of Liability of Shipowner (Act

No. 94 of 1975. Hereinafter referred to as "Act on Limitation of Liability").

(Intervention of International Fund)

Article 33 The International Fund may intervene in the procedure of limitation

of liability pursuant to the provisions of the Rules of Supreme Court.

(Notification of Pendency of Procedure for Limitation of Liability to

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International Fund)

Article 34 (1) When a procedure for limitation of liability is pending, the person

who made an application, the Beneficiary Debtor or the person who intervene

in the Procedure for Limitation of Liability may notify the International Fund

of that effect.

(2) The notification pursuant to the preceding paragraph shall be made by

submitting a document with the description listed in respective items of

paragraph 1, Article 28 of the Act on Limitation of Liability applied mutatis

mutandis in Article 38.

(3) The court shall serve the document of the preceding paragraph to the

International Fund

Article 35 In the case the International Fund intervene in the procedure for

limitation of liability or the document was served to the International Fund

pursuant to the provision of paragraph 3 of the preceding Article, the court

shall, if a change occurred in the matters listed in any of the items of

paragraph 1, Article 28 of the Act on of Limitation of Liability which are

applied mutatis mutandis in Article 38, serve the document describing the

matters pertaining to the change, and if a public notice was made pursuant to

the provisions of paragraph 1 of Article 31, paragraph 1 of Article 85 or

paragraph 1 of Article 87, serve the document describing the matters

pertaining to the public notice. In this case, the provision of Article 15 of the

Act on Limitation of Liability shall apply mutatis mutandis.

(Intervention of Tanker Owner in Procedure for Limitation of Liability When

Tanker Owner Voluntarily Took Measures to Prevent Damage)

Article 36 (1) If the Tanker Owner voluntarily took the measures prescribed in

item 6.(b) of Article 2, the Tanker Owner shall be deemed to have the Limited

Claim on the Cost of Preventive Measures of Damage by Tanker Owner, and

for this reason may intervene in the procedure for limitation of liability.

(2) The provisions of paragraph 5 of Article 47, Article 50 (including the cases

where they are applied mutatis mutandis in paragraph 2 of Article 51 of the

Act on Limitation of Liability) and Article 53 of the Act on Limitation of

Liability shall apply mutatis mutandis to the case of the preceding paragraph.

(Suspension of Court Proceedings)

Article 37 (1) In the case a notification of the Limited Claim was made pursuant

to the provisions of paragraph 5 of Article 47 of the Act on Limitation of

Liability that is applied mutatis mutandis in Article 38, if the lawsuit is

pending between the claimant of the said claim and the applicant or the

beneficiary debtor, the court may order suspension of the court proceedings by

14

the application of the plaintiff or by the court's own authority in the case the

International Fund intervene or has received the notification of paragraph 1 of

Article 25 pertaining to the said lawsuit, or by the application of the plaintiff

in other cases.

(2) In the case the notification prescribed in the preceding paragraph or the

notification pursuant to paragraph 5, Article 47 of the Act on Limitation of

Liability that is applied mutatis mutandis in paragraph 2 of the preceding

Article is made, if the lawsuit pertaining to the said claim against the

International Fund claiming compensation prescribed in paragraph 1, Article 4

of the International Fund Convention is pending, the court may by its

authority order suspension of the court proceedings.

(3) In the case of paragraph 1, if suspension of court proceedings is ordered by

the application of the plaintiff, the court may revoke the ruling of the said

suspension.

(Intervention of Supplementary Fund)

Article 37-2 The provisions from Article 33 to Article 35 shall apply mutatis

mutandis to the Supplementary Fund. In this case, the term "paragraph 3 of

the preceding Article" in Article 35 shall be deemed to be replaced with

"paragraph 3 of the preceding Article that is applied mutatis mutandis in

Article 37-2", the term "paragraph 1 of Article 25" in paragraph 1 of the

preceding Article to be replaced with "paragraph 1 of Article 25 that is applied

mutatis mutandis in Article 30-3", and the term "the International Fund

Convention" in paragraph 2 of the same Article to be replaced with "the

Protocol on Supplementary Fund".

(Application Mutatis Mutandis of the Act on Limitation of Liability)

Article 38 For the procedure for limitation of liability pertaining to the Tanker

Oil Pollution Damage by the provisions of this Act, the provisions of Chapter

III of the Act on Limitation of Liability (except Article 9, Article 10, Article 16,

Section 4, Article 54 the Act on Limitation of Liability listed in the first column

of the following table, the words and phrases shown in the second column of

the table shall be deemed to be replaced with the words and phrases in the

third column.

Article 13, this Act this Act applied

paragraph 1 of mutatis mutandis in

Article 14, Article 38 of the Act

Article 15, on Liability for Oil

Article 33 and Pollution Damage

paragraph 1 of

Article 40

15

Paragraph 1 of Shipowner, etc. or Salvor, or Tanker Owner

Article 17 Servant,etc. (including member

of unlimited liability

of Tanker Owner as

a juridical person) or

Insurer, etc.

Article 18 the amount of limited claim the amount of

(excluding the interest after accident, limited claim is that

or damages due to nonperformance or in Article 6 of the

claim for penalty. The same shall Act on Liability for

apply in Item 2 of Article 25.) is that Oil Pollution

in paragraph 1, paragraph 3 or Damage

paragraph 5 of Article 7

Paragraph 1 of the money and the money caluculated money

Article 19 by multiplying the rate of 6 % per

annum for the period from the date of

accident to the date of deposit (in the

case a contract on commission of

deposit is concluded pursuant to the

provision of paragraph 1 of the next

article, the date of notification

pursuant to the same paragraph. The

same shall apply in the next

paragraph.)

Paragraph 2 of the date of deposit the date of deposit

Article 19 (in the case a

contract on

commission of

deposit is concluded

pursuant to the

provision of

paragraph 1 of the

next article, the date

of notification

pursuant to the

same paragraph. )

item 4 of the ship, the ship rendering salvage tanker

paragraph 1 of services or the salvor

Article 28

Paragraph 1 of the Amount of Limit of Liability or the Amount of Limit

Article 30 date of accident of Liability

16

the money and the money caluculated money

by multiplying the rate of 6 % per

annum for the period from the date of

accident to the date of deposit (in the

case a contract on commission of

deposit is concluded pursuant to the

provision of paragraph 1 of Article 20

applied mutatis mutandis in the next

article, the date of notification

pursuant to the same paragraph. ) or

the money that shoud be increased by

multiplying the rate of 6 % per

annum prescribed in paragraph 1 of

Article 19

Paragraph 2 of the date of deposit... in paragraph 2 the date of deposit

Article 30 of Article 19 (...........) in

paragraph 2 of

Article 19 that shall

be deemed to be

replaced with

applied mutatis

mutandis in Article

38 of the Act on

Liability for Ship Oil

Pollution Damage

the date of deposit of the date of deposit

based on the ruling

pursuant to .... (that

is applied mutatis

mutandis in

paragraph 2 of

Aritcle 30

Paragraph 1 of limited claim(as for the interest and limited claim

Article 47 the damages due to nonperformance

or the claim for penalty, they are

limited to those that accrued by the

date of the start of the period for

investigation of limited claim. The

same shall apply hereafter in this

Chapter.)

paragraph 2 of the Act on Liability for Ship Oil this Act

Article 48 Pollution Damage

the same Act the Act on Liability

for Ship Oil

Pollution Damage

Article 57 and when it is a limited claim, the and if it is a limited

description and the distinciton credit, the

between the claim on the damage to description

the person and the damage to the

property

17

Article 60 the description and the distinciton the description

between the claim on the damage to

the person and the damage to the

property

paragraph 2 of the description and the distinciton the description

Article 61 between the claim on the damage to

the person and the damage to the

property

Paragraph 1 of lawsuit outside the procedure the lawsuit between

Article 66 the claimant and the

applicant or the

Benificiary Debtor

(hereinafter referred

to as "Lawsuit

Outside the

Procedure". )

Paragraph 2 of accoding to the distinciton between the matters

Article 70 the claim on the damage to the

person and the damage to the

property

(Rules of Supreme Court)

Article 39 In addition to what is provided in this Act, the requirements

concerning the procedure for limitation of liability shall be prescribed by the

Rules of Supreme Court.

Chapter VI Liability for General Ship Oil Pollution Damage and Limitation

of Liability

(Liability for General Ship Oil Pollution Damage)

Article 39-2 (1) When a General Ship Oil Pollution Damage occurred, the Owner

of General Ship of the General Ship in which the Bunker Oil pertaining to the

said General Ship Oil Pollution Damage was loaded shall be responsible for

compensation of the damage jointly and severally, provided, however, that this

shall not apply if the said General Ship Oil Pollution Damage falls under any

of the following items:

(i) Damage was caused by war, civil war or insurrection.

(ii) Damage was caused by an abnormal natural disaster.

(iii) Damage was solely caused knowingly by the person other than the said

Owner of general ship or his/her employees.

(iv) Damage was solely caused by a defect in the management of the aids to

navigation or the signal facilities for traffic control by the state or a public

entity.

(2) The provisions of paragraph 2 and paragraph 3 of Article 3 and Article 4 shall

18

apply mutatis mutandis to the compensation for the General Ship Oil Pollution

Damage. In this case, the terms "in the Tankers " and "Oil" in paragraph 2 of

Article 3 shall be deemed to be respectively replaced with "in General Ship"

and "Bunker Oil", and the term "Tanker Owner" to be replaced with "Owner of

General Ship".

(Limitation of Liability of Owner of General Ship)

Article 39-3 The limitation of liability pertaining to the claim based on the said

General Ship Oil Pollution Damage for which Owner of General Ship (including

members with unlimited liability of Owner of General Ship as a juridical

person) are responsible pursuant to the provision of paragraph 2 of Article 3

that is applied mutatis mutandis in paragraph 1 and 2 of the preceding Article

shall be as prescribed in the Act on Limitation of Liability.

Chapter VII Contract on Insurance or Other Financial Security for General

Ship Oil Pollution Damage

(Compulsive Contract on Insurance or Other Financial Security)

Article 39-4 (1) A General Ship with Japanese nationality (limited to the ship

with the gross tonnage of not less than 100 tons. Hereinafter the same shall

apply in this Chapter) shall not be engaged on international voyages (meaning

the voyages between a port in Japan and a port in a region other than Japan.

The same shall apply hereinafter) unless they make a Contract on Insurance or

Other Financial Security for General Ship Oil Pollution Damage (hereinafter

referred in this Chapter simply as "Contract on Insurance or Other Financial

Security") prescribed in this Act.

(2) A General Ship other than the General Ship prescribed in the preceding

paragraph shall not enter the ports in Japan (including the Tokyo Bay, the Ise

Bay (including the sea area adjacent to the entrance of the Ise Bay, and the

Mikawa Bay), the Seto Inland Sea and other sea areas prescribed by an

ordinance of the Ministry of Land, Infrastructure, Transport and Tourism

(hereinafter referred in this paragraph and paragraph 1 of Article 41-2 as

"Designated Sea Area"). The same shall apply in paragraph 2 of Article 39-7)

(including entrance to Designated Sea Area. The same shall apply in the

paragraph above), leave the ports in Japan (including leaving Designated Sea

Area. The same shall apply in the paragraph above) or use the mooring

facilities in Japan unless they have a Contract on Insurance or Other Financial

Security.

(Contract on Insurance or Other Financial Security)

Article 39-5 (1) A Contract on Insurance or Other Financial Security shall be an

19

insurance contract to cover any of the following damage or a contract to secure

the performance of its obligations for damages and payment of costs:

(i) In the case Owner of General Ship of a General Ship are responsible for

compensation of General Ship Oil Pollution Damage by the Bunker Oil

loaded in the said General Ship, the damage incurred by the said Owner of

General Ship by performance of the obligations for compensation of the

damage.

(ii) In the case a General Ship is left abandoned in the territory of Japan by the

reasons such as stranding, sinking, etc., the damage incurred by the Owner

of General Ship by the payment of the cost for removing the said General

Ship or taking other measures when they are responsible for the performance

of them pursuant to the provisions of the Ports and Harbors Act (Act No. 218

of 1950) or other laws and regulations.

(2) For the Contract on Insurance or Other Financial Security, the party who

covers the damage of the Owner of General Ship or the party who secures the

performance of the obligations for damages in that Contract shall be the party

such as shipowners' mutual protection and indemnity association, insurance

company or other entity specified by a cabinet order.

(3) For the Contract on Insurance or Other Financial Security, the amount of

insurance to cover the damage of the Owner of General Ship listed in item 1 of

paragraph 1 (The damage to the Owner of General Ship other than listed in the

respective items of the said paragraph may be included.) or the amount for

which the performance of the obligations of damages is secured shall not be

less than the Amount of Limit of Liability in the case where the said Owner of

General Ship can limit the liability pursuant to the provision of paragraph 1,

Article 3 of the Act on Limitation of Liability for each General Ship pertaining

to the Contract (Hereinafter referred in this Article as "the Amount of Limit of

Liability") and the amount of insurance to cover the damage of the Owner of

General Ship listed in item 2 of paragraph 1 or the amount for which the

payment of cost required for removing the said general ship or taking other

measures is secured shall not be less than the amount equivalent to the

Amount of Limit of Liability for each General Ship pertaining to the Contract.

(4) Notwithstanding the provision of paragraph 1 and the preceding paragraph,

the Contract on Insurance or Other Financial Security pertaining to a General

Ship that does not require to use Bunker Oil for its navigation shall be an

insurance contract that covers the damage listed in item 2 of paragraph 1 or a

contract that secures the payment of the cost, and the amount of insurance to

cover the damage of Owner of General Ship listed in the said item or the

amount for which the payment of cost required for removing the said general

ship or taking other measures is secured shall not be less than the amount

equivalent to the Amount of Limit of Liability for each General Ship pertaining

20

to the Contract.

(Application Mutatis Mutandis)

Article 39-6 The provisions from Article 17 to Article 19 shall apply mutatis

mutandis to the Contract on Insurance or Other Financial Security pertaining

to a General Ship. In this case, the term "a Tanker (except the Tanker that has

nationality of a foreign state contracting the Liability Convention)" in

paragraph 1 of Article 17 shall be deemed to be replaced with "General Ship",

the term "the next article" in paragraph 1 of Article 18 to be replaced with "the

next article that is applied mutatis mutandis in Article 39-6" and the term

"Article 14" in Article 19 to be replaced with "the preceding Article".

(Carrying a Document Equivalent to Certificate of Contract on Insurance or

Other Financial Security on board)

Article 39-7 (1) A General Ship with Japanese nationality shall not be engaged

on international voyages unless they carry on board a document equivalent to a

Certificate of Contract on Insurance or Other Financial Security prescribed in

paragraph 4 of Article 17 that is applied mutatis mutandis in the preceding

Article.

(2) A General Ship other than those prescribed in the preceding paragraph, shall

not enter or leave Japanese ports or use the mooring facilities in Japan unless

it carries on board a document equivalent to the Certificate of Contract on

Insurance or Other Financial Security prescribed in paragraph 4 of Article 17

that is applied mutatis mutandis in the preceding Article.

(3) Notwithstanding the preceding two paragraphs, if the said Contract on

Insurance or Other Financial Security is concluded with a party designated by

the Minister of Land, Infrastructure, Transport and Tourism as an Insurer

that has the financial resource and credit required to cover the damage of

Owner of General Ship or secure the performance of the obligation for damages

and the payment of the cost, the document of equivalent to Certificate of

Contract on Insurance or Other Financial Security prescribed in the preceding

two paragraphs may be substituted with a copy of the said Contract on

Insurance or Other Financial Security or other document proving the

conclusion of Contract on Insurance or Other Financial Security prescribed by

an ordinance of the Minister of Land, Infrastructure, Transport and Tourism.

(Exclusion from Application)

Article 39-8 The provisions of this Chapter shall not apply to a General Ship

owned by a foreign state.

Chapter VIII Miscellaneous Provisions

21

(Maritime Lien)

Article 40 (1) The claimant of the limited claim pertaining to Tanker Oil

Pollution Damage has maritime lien on the ship pertaining to the accident, its

equipment and the freight that has not been received.

(2) The lien of the preceding paragraph is next in order of precedence to the lien

in item 8 of Article 842 of the Commercial Law (Act No. 48 of 1899)

(3) The provisions of Article 843, the main clause of paragraph 2 and paragraph 3

of Article 844, Article 845, Article 846, paragraph 1 of Article 847 and Article

849 of the Commercial Law shall apply mutatis mutandis to the lien of

paragraph 1.

(4) In the case there was a ruling of commencement of the procedure for

limitation of liability before the extinction of the lien of paragraph 1, if a ruling

to revoke the ruling or a ruling to abolish the procedure of the limitation of

liability became final and binding, the lien of the paragraph 1 shall be extinct

in one year after the finalization of the ruling notwithstanding the provision of

paragraph 1 of Article 847 of the Commercial Law.

(Effect of Establishment of Fund in a Foreign Country as Contracting States)

Article 41 (1) In the case a fund is formed pursuant to the provision of Article 5

of the Liability Convention in a foreign country as a contracting state of the

Liability Convention, the Claimant of the Limited Claim pertaining to Tanker

Oil Pollution Damage may not exercise its right on the properties of the Tanker

Owner or Insurer other than the said fund for the Limited Claim which may

receive payment from the said fund.

(2) The provisions from Article 34 to Article 36 of the Act on Limitation of

Liability shall apply mutatis mutandis to the case of the preceding paragraph.

(Information about Contract on Insurance or Other Financial Security)

Article 41-2 (1) The captain of Specified Ship (meaning the Tanker carried more

than 2,000 tons of Oil in bulk or the General Ship with the gross tonnage of not

less than 100 tons. Hereinafter the same shall apply in this Chapter and in

item 6 of Article 48) which intends to enter a port in Japan (for the General

Ship, the entrance to the Specified Sea Areas is included. The same shall apply

hereinafter) from a port in a region other than Japan shall notify the Minister

of Land, Infrastructure, Transport and Tourism in advance of the name of the

said Specified Ship, the port of registry, the existence or non existence of

Contract on Insurance or Other Financial Security for Tanker Oil Pollution

Damage or Contract on Insurance or Other Financial Security for General Ship

Oil Pollution Damage prescribed in this Act pertaining to the said Specified

Ship (hereinafter referred to simply as "Contract on Insurance or Other

22

Financial Security" in this Chapter) and other matters prescribed in an

ordinance of the Ministry of Land, Infrastructure, Transport and Tourism

(hereinafter referred to as "Information about Contract on Insurance or Other

Financial Security").The same shall apply if the captain intends to change the

Information about Contract on Insurance or Other Financial Security that was

notified.

(2) The notification that the captain shall make pursuant to the provision of the

preceding paragraph may be made by the Tanker Owner or Owner of General

Ship (hereinafter referred to simply as "Shipowner" in this Chapter), or the

captain or an agent of Shipowner of the said Specified Ship.

(3) The captain of Specified Ship which entered a port in Japan from a port in a

region other than Japan under unavoidable circumstances prescribed in an

ordinance of the Ministry of Land, Infrastructure, Transport and Tourism such

as foul weather, distress or other reasons without notifying the Information

about Contract on Insurance or Other Financial Security shall notify the

Minister of Land, Infrastructure, Transport and Tourism of Information about

Contract on Insurance or Other Financial Security immediately after the

entrance to the port pursuant to the provision of an ordinance of the Ministry

of Land, Infrastructure, Transport and Tourism.

(Report and Inspection)

Article 42 (1) To the extent necessary for the enforcement of this Act, The

Minister of Land, Infrastructure, Transport and Tourism may cause the

captain of Specified Ships in the port or in the mooring facilities in Japan to

report on Contract on Insurance or Other Financial Security pertaining to the

said Specified Ships, or cause its officials to enter the said Specified Ships and

inspect the documents or the other objects prescribed in paragraph 1 of Article

17 or paragraph 2 of Article 20, or respective paragraphs of Article 39-7, or let

them to ask questions to the persons concerned.

(2) The officials who conduct on-site inspection pursuant to the provision of the

preceding paragraph shall carry an identification card certifying the status and

present it to the persons concerned.

(3) The authority to conduct on-site inspection pursuant to the provision of

paragraph 1 shall not be construed as being vested for criminal investigation.

(Order to Conclude Contract on Insurance or Other Financial Security)

Article 42-2 (1) If it is recognized as a collection of the report or the result of the

on-site inspection pursuant to the provision of paragraph 1 of the preceding

Article that there is a fact of violation of any of the provisions of Article 13 or

Article 20, or Article 39-4 or Article 39-7, the Minister of Land, Infrastructure,

Transport and Tourism may order the captain of the said Specified Ship or the

23

Shipowner to conclude a Contract on Insurance or Other Financial Security or

take other measures to correct the violation.

(2) In the case of the preceding paragraph, the Minister of Land, Infrastructure,

Transport and Tourism, when it is recognized as required, may order the

detention of navigation of the said Specified Ship until a measure for correction

of the violation of the said paragraph has been taken.

(3) The Minister of Land, Infrastructure, Transport and Tourism shall

immediately rescind the disposition when it is recognized that the fact

prescribed in paragraph 1 does not exist any more concerning the Specified

Ship pertaining the disposition pursuant to the preceding paragraph.

(Exclusion from Application)

Article 43 The provisions of this Act shall not apply to a Tanker and a General

Ship for official use.

(Responsibility)

Article 43-2 The Minister of Land, Infrastructure, Transport and Tourism shall

make efforts to secure adequate performance of international commitments and

provide appropriate information to the people concerned with respect to the

Ship Oil Pollution Damage for the purpose of improving the care of the victim

of the Oil Pollution Damage.

(Delegation of Authority)

Article 44 The matters that belong to the authority of the Minister of Land,

Infrastructure, Transport and Tourism pursuant to the provisions of this Act

may be delegated to Director of the District Transport Bureau (including

Director of Transport Administration Department).

Chapter IX Penal Provisions

Article 45 (1) If the administrator appointed pursuant to the provision of Article

27 of the Act of Limitation of Liability that is applied mutatis mutandis in

Article 38, or the agent of the administrator appointed pursuant to the

provision of paragraph 1, Article 43 of the Act of Limitation of Liability

accepted, solicited, or promised to accept a bribe in connection with his/her

duties, he/she shall be punished by imprisonment with work for not more than

3 years or a fine of not more than 1,000,000 yen.

(2) In the case of the preceding paragraph, the bribe accepted shall be confiscated.

When the whole or a part of the bribe cannot be confiscated, an equivalent sum

of money shall be collected.

24

Article 46 A person who gave, offered or promised to give a bribe prescribed in

paragraph 1 shall be punished by imprisonment with work for not more than 3

years or a fine of not more than 1,000,000 yen.

Article 47 Any person who falls under any of the following items shall be

punished by imprisonment with work for not more than 1 year or a fine of not

more than 500,000 yen:

(i) A person violated the provision of paragraph 1 of Article 13 or paragraph 1

of Article 39-4.

(ii) A person who acted so that he/she may be in violation of the provision of

paragraph 2 of Article 13 or paragraph 2 of Article 39-4.

(iii) A person who received issuance or reissuance of the document prescribed

in paragraph 1 of Article 17 by a deception or other wrongful means

(including the cases where it is applied mutatis mutandis in Article 39-6).

(iv) A person who was requested to submit a report or a document pursuant to

the provision of paragraph 2 of Article 40 of the Act of Limitation of Liability

that is applied mutatis mutandis in Article 38, but did not make the report

or did not submit the document, or made a false report or submitted a false

document.

(v) A person who was in violation of the order pursuant to the provision of

paragraph 2 of Article 42-2.

Article 48 Any person who falls under any of the following items shall be

punished by a fine of not more than 300,000 yen:

(i) A person who was in violation of the provision of Article 19 (including the

cases where it is applied mutatis mutandis in Article 39-6).

(ii) A person who was in violation of the provision of paragraph 1 of Article 20

or paragraph 1 of Article 39-7.

(iii) A person who acted so that he/she may be in violation of the provision of

paragraph 2 of Article 20 or paragraph 2 of Article 39-7.

(iv) A person who did not make a report pursuant to the provision or paragraph

1 or paragraph 2 of Article 28 or made a false report.

(v) A captain who did not make a report pursuant to the provision of paragraph

1 of Article 41-2 or made a false report.

(vi) A person made a false notification in the event of notifying pursuant to the

provision of paragraph 2 of Article 41-2 (only in the case the said Specified

Ship entered a port).

(vii) A captain who did not make a report pursuant to the provision of

paragraph 3 of Article 41-2 or made a false report.

(viii) A person who did not make a report pursuant to the provision of

paragraph 1 of Article 42 or made a false report.

25

(ix) A person who refused, interfered with or recused the inspection pursuant

to the provision of paragraph 1 of Article 42, or did not make a statement or

made a false statement.

Article 49 When a representative of juridical person, an agent, an employee or

any other worker of a juridical person or an individual in connection with the

business of such juridical person or an individual committed an act in violation

of the preceding two articles, not only the offender shall be punished but also

the said juridical person or person shall be punished by the fine prescribed in

the preceding two articles.

Article 50 Any person who falls under any of the following items shall be

punished by a non-penal fine of not more than 200,000 yen:

(i) A person who did not make notification pursuant to the provision of

paragraph 1 of Article 18 (including the cases where it is applied mutatis

mutandis in Article 39-6) or made a false notification.

(ii) A person who was in violation of the provision of paragraph 3 of Article 18

(including the cases where it is applied mutatis mutandis in Article 39-6).

26