GENERAL INFORMATION

Since 1956, the Bulgarian Chamber of Commerce and Industry has a General Average Adjusters' Office for the establishment of general averages, the expenses and sacrifices that have been made and their distribution among vessel, freight and cargo. This activity is regulated by Art. 302 and 306 of the Bulgarian Maritime Code, Ordinance No 11/1975 of the Ministry of Transport and Ministry of Justice and the Rules on the Organization and Activity of the General Average Adjusters' Office with BCCI.

The Office operates in compliance with the accepted international practice for settlement of international private law commercial and maritime disputes for the establishment of general averages.

"General average" is a legal institute of maritime law and practice related to commercial navigation. It has been known from ancient times. The principles and mechanisms of general average allow a just settlement and distribution of interests of the participants in sea transport.

"General average" is a legal term referring to damages, extraordinary expenses and sacrifices made deliberately, reasonably and consciously for saving the vessel, fright and cargo from a common danger for them during sea transport. The definition of general average is given by Art. 290 of the Maritime Code.

The existence of a general average is established by an "average adjuster", a person with a special qualification, evaluating and recognizing general average losses and expenses, calculating them and distributing them among the participants.The average adjuster makes a general average adjustment upon authorization by one of the interested parties - ship owner, sea carrier, cargo owner, insurer. The request for an average adjustment is usually made by the ship owner and has to be accompanied by all documents and evidence, which would allow to the average adjuster to make a ruling whether there is or not a general average and then proceed to the average adjustment.

Average adjustment is the document drawn by the average adjuster. It establishes the amount of the loss and its distribution among the participants, in proportion to the value of cargo, ship and freight. Average adjustments can be drawn only by average adjusters who are on the list of the General Average Adjusters' Office with BCCI.

The adjustment proceedings consist of two basic phases:

1. Examination of the request for recognition of a general average and the issuance of a substantiated ruling for recognition of the the general average or for rejection of the request.
2. Drawing up and issuance of a general average adjustment

The adjustment has to contain the following:

• Date and place of issue
• The full name(s) of the average adjuster(s) who have drawn the adjustment
• Brief description of the pertinent circumstances
• Ruling of the average adjuster
• Determination of the losses and expenditures of the general average
• Determination of the currency
• Determination of the value of the vessel
• Determination of the freight
• Determination of the value of the cargo
• Determination of the losses and expenditures recognized as a general average
• Contribution capital
• Apportionment of the general average
• Balance and final account
• Liquidation account among the parties
• Settlement of cash deposits
• Supplements

The adjustment procedure is complex and specific and requires special knowledge and expertise not only in the legal area but also in maritime, commercial and insurance practice. To ensure the required competence of the adjustment proceedings, BCCI is organizing special training courses ending with an oral and written exam before a commission for admittance to the qualification "average adjuster". Average adjusters can be only persons

1. Who have attended a qualification course in general and particular average in BCCI and have a certificate for it
2. Who have passed a written and oral exam in maritime law and practice of general average and international customs of commercial navigation before a special commission, appointed by BCCI President
3. Who meet the following additional requirements:
   • To be Bulgarian citizens of full age with a clean police record
   • To have a higher legal, economic and naval education and expertise in the field of theory and practice of maritime law or foreign trade, insurance and other international economic relations
   • To have a good command of one of the UN official languages
   • To submit an affidavit to be impartial and conscientious in the performance of their duties.
Average adjusters are included in the list of average adjusters for a period of 5 years by resolution of the BCCI Executive Council, when they have passed the exams under item 1 and 2 and meet the requirements of item 3.

Average adjusters are independent and impartial in the performance of their duties. They have to practice conscientiously their rights and obligations and participate actively in the examination of facts and the rights and obligations of the participants in the general average.