"Limitation of Action" refers to a regime under which if a party to an action neglects or fails to exercise his right for a certain period, then his title shall become defective from the perspective of legal effect. In China, limitation of action is an extinctive prescription, as may be seen from substantive laws such as the General Principles of Civil Law, Contract Law and Maritime Code of PRC. In nature, the limitation of action regarding carriage of cargo by sea in China is also an extinctive prescription, both for cargo claims filed by cargo owners against carriers and for recovery claims filed by carriers against the third party liable. Furthermore, it is a special limitation of time different from the general two-year limitation of action prescribed in the General Principles of Civil Law.
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