· Area of Law： Foreign Affairs

· Level of Authority： Working Documents

· Date issued：10-28-2008

· Effective Date：10-28-2008

· Status： Effective

· Issuing Authority： Standing Committee of the National People's Congress

Decision of the Standing Committee of the National People's Congress on Ratifying the Convention on International Interests in Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft Equipment
(adopted at the 5th Session of the Standing Committee of the Eleventh National People's Congress on October 28, 2008)
At its 5th session, the Standing Committee of the Eleventh National People's Congress decides: to ratify the Convention on International Interests in Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft Equipment (hereinafter referred to as Convention and Protocol) as adopted at the Diplomatic Conference of the Council of International Civil Aviation Organization (ICAO) and the International Institute for the Unification of Private Law (UNIDROIT), and to declare simultaneously that:
I. About sub-paragraph (a) of paragraph 1 of Article 39 of the Convention: under the laws of the People's Republic of China, any non-consensual right or interest which has priority over the secured creditor shall have priority over a registered international interest, no matter whether the non-consensual right or interest is registered or not, including but not limited to costs for bankruptcy proceedings, claims of common benefit of creditors, wages and salaries of employees, taxes occurred before the civil aircraft is mortgaged, pledged or retained, claims for getting paid for rescuing the civil aircraft and claims for expenses necessary for keeping and maintaining the civil aircraft, etc.
About sub-paragraph (b) of paragraph 1 of Article 39 of the Convention: nothing in this Convention shall affect the right of a State or State entity, intergovernmental organization or other private provider of public services to seize or detain an object under the laws of the People's Republic of China for payment of amounts owed to such entity, organization or provider directly relating to those services in respect of that object or another object.
About paragraph 4 of Article 39 of the Convention: a right or interest of a category covered by the declaration made under sub-paragraph (a) of paragraph 1 of Article 39 shall have priority over an international interest registered prior to the date when the Protocol is ratified.
II. About Article 40 of the Convention: the interest attached to the debtor's equipment obtained in enforcing a debt as ordered by a court shall be a registrable non-consensual right or interest under the Convention.
III. About Article 43 of the Convention: Article 43 of the Convention is applicable to the People's Republic of China, in particular, paragraph 1 and sub-paragraph (a) of paragraph 2 are applicable only when the courts of a Contracting State chosen by the parties are courts of places actually related to the disputes arisen from the agreement.
IV. About paragraph 1 of Article 50 of the Convention: the Convention is not applicable to the internal transactions of the People's Republic of China.
V. About Article 53 of the Convention: the intermediate people's courts of the locality of the headquarters of the airline companies of the People's Republic of China shall have jurisdiction over the aircraft equipment lease disputes concerned in the Convention.
VI. About paragraph 1 of Article 54 of the Convention: while the charged object is situated within the territory of the People's Republic of China, the chargee shall not grant a lease of the object within the territory of the People's Republic of China.
About paragraph 2 of Article 54 of the Convention: any remedy available to the creditor under any provision of the Convention which is not there expressed to require application to the court may be exercised only with leave of the people's courts of the People's Republic of China.
VII. Articles VIII, XII and XIII of the Protocol are applicable to the People's Republic of China.
VIII. Paragraphs 1, 2, 3, 4, 6 and 7 of Article X of the Protocol are applicable to the People's Republic of China. After receiving an application, a court of the People's Republic of China shall, for the remedy specified in subparagraph (a), (b) or (c) of paragraph 1 of Article 13 of the Convention, give a ruling within 10 days and immediately enforce it; for the remedy specified in subparagraph (d) or (e) of paragraph 1 of Article 13 of the Convention, give a ruling within 30 days and immediately enforce it.
IX. The People's Republic of China applies Alternative A of Article XI of the Protocol to all bankruptcy proceedings defined by the Protocol and determines the waiting period as 60 days.
X. Under Article XIX of the Protocol, the People's Republic of China designates the entitlement registration body of the Civil Aviation Administration of China as the entry point.
XI. Before it is otherwise notified by the Government of the People's Republic of China, neither the Convention nor the Protocol is applicable to Hong Kong Special Administrative Region and Macao Special Administrative Region of the People's Republic of China.