Firstly, this paper reviews the historical origin and rise and fall of exemption from nautical fault, especially the different provisions of Hague Rules, Visby Rules and Hamburg Rules on whether or not to exempt nautical fault, and reproduces the historical change track of exemption from nautical fault. Secondly, using the basic theory of law and the principle of law and economics, this paper makes an in-depth analysis and evaluation of the promotion and adverse effects of the exemption system for nautical fault on the international shipping industry, and draws the conclusion that the system has contributed to the development of the international shipping industry. Finally, according to the development trend of China's water transport industry after China's entry into WTO, this paper demonstrates the inevitability and rationality of exemption from navigation fault in inland river and coastal cargo transport in China, that is, after China's entry into WTO, China's water transport service market will be further opened, and the existing legal system of water transport dual-track system may become a legal shackle that hinders the competition of domestic water transport enterprises; When there is irreconcilable conflict between fairness and efficiency, the design of legal system should pay more attention to efficiency and benefit for a considerable period of time; Exemption from nautical fault is a common practice in international shipping. China should change the dual-track system of waterway transportation law into a single system of waterway transportation law, that is, amend the second paragraph of Article 2 of Maritime Law and implement the exemption system of maritime negligence in inland river and coastal cargo transportation. The article also believes that the abolition and reform of the exemption system for nautical fault should be considered after the shipping productivity has been greatly improved. Key words: nautical fault exemption, fairness and efficiency, the full text is about 7600 words. Exemption from liability for nautical fault means that the captain, crew, pilot and other employees of the carrier are exempt from liability for compensation for cargo damage caused by negligence, fault or non-performance of the contract of carriage in driving and managing the ship. Item (1) of Article 5 1 of China's Maritime Code clarifies the carrier's right of exemption from navigation fault, while Article 3 1 1 of the Contract Law does not allow the carrier to be exempted from navigation fault. Exemption from nautical fault is a system: carriers and cargo insurers strongly advocate it, while shippers and consignees strongly oppose it; Maritime law advocates and contract law abandons. Then, how to deal with the exemption of nautical fault correctly is a problem that maritime trial must face directly after the contract law comes into effect, and the reality that China has joined w to makes this problem even more urgent. This paper reviews the history of the exemption system for nautical fault, discusses its advantages and disadvantages, and makes academic thinking on its preservation and abolition. ....../pages/paper_48687.htm