Official Gazette - No. 18 (Continued) dated May 3, 1990

Law No. 8 of 1990 Issuing the Maritime Commerce Law

In the name of the People, the President of the Republic, the People's Assembly has decided the following law, which we hereby issue:

(Article One)

Subject to the rules and provisions stipulated in special laws, the provisions of the accompanying Maritime Commerce Law shall apply, and the Maritime Commerce Law issued on November 13, 1883, is hereby repealed.

(Article Two)

The President of the Republic shall, by decree, determine the competent minister and the competent administrative authority for the implementation of the provisions of the accompanying law.

(Article Three)

This law shall be published in the Official Gazette and shall take effect six months from the date of its publication. This law shall be sealed with the State seal and enforced as one of its laws. Issued at the Presidency on 26 Ramadan 1410 AH (April 22, 1990) Hosni Mubarak

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Official Gazette - No. 18 (Continued) dated May 3, 1990

Maritime Commerce Law

Chapter One On the Ship

Section One General Provisions

Article 1 – (1) The ship is any facility that usually operates or is prepared to operate in maritime navigation, even if it is not intended for profit.

Article 1 – (2) The ship's accessories necessary for its exploitation shall be considered part of it.

Article 2 Except in cases where a special provision applies, the provisions of this law shall not apply to warships and ships designated by the State or a public entity for public service and non-commercial purposes.

Article 3 The provisions of special laws regarding the registration, supervision, safety, and required documents of ships shall apply.

Article 4 The provisions regarding movable property shall apply to the ship, except for the rule of acquisition by possession, subject to the provisions stipulated in this law.

Article 5 Without prejudice to provisions stipulated in special laws, a ship acquires Egyptian nationality if it is registered in one of its ports and is owned by a natural or legal person holding this nationality. If the ship is co-owned, it is required that the majority of shares be owned by Egyptians.

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Article 6 – (1) Every Egyptian ship shall fly the flag of the Arab Republic of Egypt, and it shall not fly any other flag except in cases where maritime custom permits.

Article 6 – (2) The ship must have a name agreed upon by the competent administrative authority, and this name, accompanied by the ship's registration number, shall be placed in a conspicuous location on it, in accordance with provisions issued by a decree of the competent minister.

Article 6 – (3) The shipowner shall indicate its gross tonnage and net tonnage, which shall be determined by a decision of the competent administrative authority, and this authority shall issue a certificate to interested parties accordingly.

Article 6 – (4) Whoever violates the provisions stipulated in this article shall be punishable by imprisonment for a term not exceeding one year and a fine not exceeding three thousand pounds, or by one of these two penalties, including the owner and the master, unless the violation occurred under duress while the ship was captured.

Article 7 – (1) Foreigners residing in the Arab Republic of Egypt shall obtain a license from the competent administrative authority in case of using pleasure boats owned by them in Egyptian territorial waters and shall request their registration in the special register for that purpose. The license shall be revoked if the boat is used for purposes other than pleasure, and the registration office shall be notified to cancel the registration.

Article 7 – (2) The ships referred to in the preceding paragraph shall fly the flag of the state whose nationality they bear, and they shall not be allowed to fly the flag of the Arab Republic of Egypt.

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Article 7 – (3) The owner of a pleasure boat who violates the provisions of this article shall be punishable by imprisonment for a term not exceeding one year and a fine not exceeding three thousand pounds, or by one of these two penalties.

Article 8 – (1) Except for ships enjoying Egyptian nationality, fishing, towing, or pilotage shall not be permitted in territorial waters, nor shall coastal navigation between Egyptian ports be permitted.

Article 8 – (2) The competent minister may, by decree, authorize ships bearing foreign nationality to perform one or more of the aforementioned activities for a specified period.

Article 8 – (3) Whoever violates the provisions of this article shall be punishable by imprisonment and a fine not exceeding five thousand pounds, or by one of these two penalties.

Article 9 – (1) The provisions of Egyptian criminal legislation shall apply to crimes committed on every ship flying the flag of the Arab Republic of Egypt.

Article 9 – (2) The provisions of special laws regarding the maintenance of order and discipline on the ships mentioned in the preceding paragraph shall apply.

Article 10 The primary court within the jurisdiction of which the registration office of the ship flying the flag of the Arab Republic of Egypt is located shall have jurisdiction to hear in rem actions related to it, unless the law provides otherwise.

Article 11 – (1) Transactions whose subject is the creation, transfer, or extinction of ownership or other real rights over the ship shall be executed by a formal instrument, otherwise they shall be null and void.

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Article 11 – (2) If these transactions occur in a foreign country, they must be executed before the consul of the Arab Republic of Egypt in that country, and in the absence of such consul, before the competent local official.

Article 11 – (3) The transactions referred to in the preceding paragraph shall not be enforceable against third parties unless they are registered, upon request by interested parties, in the ship's register kept at the competent registration office, and the order of registration shall be determined by the priority of entry in this register.

Article 12 – (1) The ownership of an Egyptian ship shall not be transferred to a foreigner, for consideration or without consideration, nor shall it be leased to a foreigner for a period exceeding two years, except after obtaining permission from the competent minister.

Article 12 – (2) Whoever violates the prohibition stipulated in the preceding paragraph of this article shall be punishable by imprisonment for a term not exceeding one year and a fine not exceeding three thousand pounds, or by one of these two penalties.

Chapter Two Real Rights Over the Ship

First – Shipbuilding

Article 13 A shipbuilding contract and any amendment thereto shall not be established except in writing.

Article 14 The builder shall request delivery of the ship after testing it, unless otherwise agreed.

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Article 15 The builder guarantees the ship's freedom from hidden defects, even before requesting delivery of the ship after testing.

Article 16 The action for warranty against hidden defects shall expire one year from the time of knowledge of the defect, and such action shall also expire two years from the time of delivery of the ship, unless it is proven that the builder intentionally concealed the defect fraudulently.

Article 17 The provisions of Articles 15 and 16 of this law shall apply to contracts whose subject is carrying out repairs on the ship.

Second – Co-ownership

Article 18 – (1) The opinion of the majority shall prevail in every decision concerning the exploitation of a co-owned ship, unless the law provides otherwise or the parties agree otherwise.

Article 18 – (2) The majority shall consist of owners holding more than half of the shares in the ship, unless the law provides otherwise or the owners agree on a different majority.

Article 18 – (3) Each owner in the minority who did not agree with the decision may appeal it within fifteen days from the date of its issuance before the primary court within the jurisdiction of which the ship's registration office is located. The court may uphold or annul the decision, and the appeal shall not stay the execution of the decision unless the court orders otherwise.

Article 19 – (1) By a decision of the majority of owners, the management of the co-ownership may be entrusted to one or more managers from among the owners or others. If no manager is appointed for the co-ownership, each owner shall be considered a manager thereof. In case of multiple managers, they must act jointly unless otherwise agreed.

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Article 19 – (2) The names of the managers shall be registered in the ship's registration journal.

Article 20 – (1) The manager shall perform all transactions and acts required for the management of the co-ownership; however, he shall not be permitted to sell or mortgage the ship, or establish any other real right over it, or lease it for a period exceeding one year, except with the permission of the owners holding the necessary majority.

Article 20 – (2) Any agreement restricting the manager's powers beyond what is stipulated in the preceding paragraph shall not be enforceable against third parties.

Article 21 Each co-owner shall bear a share in the co-ownership expenses and losses in proportion to his share in the ship's ownership, unless otherwise agreed, and shall be entitled to a share in the net profits resulting from the exploitation of the ship in the same proportion.

Article 22 If the manager is a co-owner, he shall be liable with all his assets for debts arising from the co-ownership. If there are multiple managers, they shall be jointly and severally liable with all their assets. Any agreement to the contrary shall not be enforceable against third parties. Co-owners who are not managers shall be liable with all their assets and jointly and severally for debts arising from the co-ownership, unless otherwise agreed. This agreement shall not be enforceable against third parties except from the date of its registration in the ship's registration journal.

Article 23 – (1) The consent of the other owners is required, unless the transaction would result in the loss of the ship's Egyptian nationality, in which case all owners must consent.

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Article 23 – (2) Nevertheless, an owner shall not be permitted to mortgage his share in the ship except with the consent of owners holding at least three-quarters of the shares.

Article 23 – (3) The owner who disposed of his share shall remain liable for debts related to the co-ownership until the date of registration of the transaction in the ship's registration journal.

Article 24 – (1) If an owner sells his share in the ship to a foreigner, the buyer must notify the other owners via a registered letter accompanied by proof of delivery of the sale and the agreed price.

Article 24 – (2) Each owner may redeem the sold share by serving a notice on both the seller and the buyer, provided that he pays the price and expenses or offers them genuinely in accordance with the law, and files a lawsuit if necessary, within thirty days from the date of the notice stipulated in the preceding paragraph.

Article 24 – (3) If more than one owner requests redemption of the sold share, their shares shall be divided proportionally.

Article 25 Upon his withdrawal from the co-ownership, his share shall be valued by the competent court in case of dispute.

Article 26 – (1) The ship shall not be sold except by a decision issued with the consent of owners holding at least three-quarters of the shares, specifying in the decision how the sale shall be conducted and its terms.

Article 26 – (2) Each owner may, in the event of a dispute among owners that makes it impossible to continue the co-ownership in a useful manner, request from the competent court