Chapter VI General Average

①If any measures are taken to handle a ship or its cargo and other such objects in order to avoid a common danger to the ship and its cargo and other such objects, damage and costs arising from these measures (hereinafter referred to as "measures to avoid a common danger" in this Chapter) constitute a general average.

②If the danger referred to in the preceding paragraph is caused by negligence, the provisions of that paragraph do not preclude an interested person from exercising the right of reimbursement against the negligent party.

①The amount of damage that constitutes a general average is calculated on the basis of the amounts specified in the following items according to the categories set forth in the respective items; provided, however, that the amount of any and all costs that are no longer required to be paid because cargo has been lost or damaged are deducted from the amounts set forth in items (ii) and (iv):

②If a value that is lower than the real value of the cargo is entered in a bill of lading or any other document by which the price of the cargo can be evaluated (hereinafter referred to as a "price evaluation document" in this Chapter), the amount of damage caused to the cargo is determined on the basis of the value entered in the price evaluation document. The same applies if any false entry is made in a price evaluation document with regard to a particular that may affect the price of the cargo, and the value of the cargo to be evaluated on the basis of the false entry would be lower than the real value thereof.

③Interested persons are not required to share the following damage or costs:

①A general average is shared among the persons set forth in the following items (excluding the mariners and passengers) in the proportions specified in those items:

②If any necessary costs or beneficial costs have been paid out for a ship or its cargo and other such objects after the implementation of the measures to avoid a common danger and before the arrival of the ship or discharge of the cargo and other such objects, the amounts specified in items (i) through (iii) of the preceding paragraph for the ship or the cargo and other such objects are calculated by deducting the amount of the costs that have been paid (excluding costs that constitute a general average).

③If a person provided for in paragraph (1) incurs loss or damage to their property due to the measures to avoid a common danger, the amount set forth in the items of that paragraph for that person is calculated by adding the amount of the loss or damage incurred (limited, if the person pays any necessary costs or beneficial costs prescribed in the preceding paragraph for that property, to the amount paid in excess of the amount of those costs (limited to costs that constitute a general average)).

④If a value that exceeds the real value of cargo is entered in a price evaluation document, a person with an interest in the cargo shares a general average in proportion to the value entered in the price evaluation document. The same applies if any false entry is made in a price evaluation document with regard to a matter that may affect the price of the cargo, and the value of the cargo to be evaluated on the basis of the false entry would be higher than its real value.

Persons that are required to share a general average pursuant to the provisions of the preceding Article are liable to do so only up to the value that actually exists at the time of the arrival of the ship (or the time of discharge of the cargo, in the case of the person set forth in paragraph (1), item (ii) or item (iv) of that Article).

A claim based on the sharing of a general average is extinguished by prescription if it is not exercised in the one year after its calculation is completed.