Registration of Ship Requirement on ship registration : Many of us have heard about ship register, ship registration, ship registry, flag state, flags of convenience etc . In very simple terms, a ship register or ship registry gives a ship a nationality, a flag, an identity. Vessels that operate internationally or cross international borders are required to be registered. Some jurisdictions also require vessels that only operate in territorial waters to register on their national register, and some forbid foreign-flagged vessels from trading between ports within the country (a practice known as cabotage ). By Subir Basu 2
Registration of Ship The country of registration is a ship's flag state and determines its nationality as well as which country's laws govern its operation and the behavior of its crew. Each registry has its own rules as to the types of vessels that it will accept for registration. The Liberian Registry, for example, registers seagoing vessels of more than 500 net tons that conduct foreign trade. Vessels over the age of 20 require a waiver as well as the vessel's classification society being willing to issue statutory certificates to the vessel. Vessels 15 years or older must have a Status Report of the vessel's Special Survey to be reviewed by Marine Safety. Registries charge a registration fee. By Subir Basu 3
Registration of Ship Registration of Indian Ship: Following are the requirements for registration of ships in India S ea-going ships fitted with mechanical means of propulsion . A ship can only be registered in India, when the owner or owners fulfils following criteria: (a ) A citizen of India; or (b) A company or a body established by or under any Central or State Act which has its principal place of business in India; or (c) A co-operative society which is registered under the c ooperative Societies act of India. By Subir Basu 4
Registration of Ship QUALIFICATION REQUIRED FOR REGISTRATION AS INDIAN SHIPS: Sea going ships fitted with mechanical means of propulsion of 15 tons net and above howsoever employed and those of less than 15 tons net employed otherwise than solely on the coasts of Indian qualify for registration under Part V of the Merchant Shipping Act, 1958. Ships so registerable are required to be registered only at ports designated as ports of registry. In their capacity as Registrar of ships, the Principal officers and concerned Surveyors In-charge are required to maintain a complete record of ships on register indicating as on a particular date the person/persons, either in their individual capacity or as joint owners or as a corporate body, who have a stake in the ownership of ships. Not more than 10 individuals are entitled to be registered as a owner of a fractional part of a share in a ship, but a maximum of 5 persons could be registered as joint owners of a ship or of any share and shares therein. By Subir Basu 5
Registration of Ship FORMALITIES TO BE OBSERVED FOR REGISTRATION AS INDIAN SHIP : The owner of a ship wishing to have it registered at a port in India has to submit to the concerned Register : A declaration of ownership – in one or the other prescribe forms, as may be applicable, depending upon whether he is a sole proprietor, joint owner or a company A certificate signed by the builder (builder’s certificate) of the ship containing a true account of the proper denomination and of the tonnage of the ship as estimated by him and the time, when and the place where the ship was built, (for new ship). The instrument of sale under which the property of the ship was transferred to the applicant who requires it to be registered in his name, (for secondhand ships). By Subir Basu 6
Registration of Ship d) To give a minimum of 14 days notice to the Registrar of the name proposed for the ship. The Registrar before registering the vessel in the name of the applicant shall obtain prior approval of the name from the Director General of Shipping who will also allot an official number for the ship. e) On being satisfied that the ship, on the strength of the evidence placed before him, is entitled to be Indian ship, the Registrar arranges for survey of the ship by a surveyor for the determination of her tonnage in accordance with the Merchant Shipping (Tonnage Measurement ). f) After the formalities enumerated above have been gone through, the Registrar issues a carving and marking note. This note is to be returned to the Registrar after carving and marking have been duly carried out on the ship in the prescribed manner and certified by a Surveyor. The carving and marking involves the carving of the name of the ship conspicuously on each side of her bows as well as insertion permanently on her stern the name of the intended port of registry. By Subir Basu 7
Registration of Ship g) On completion of the preliminaries to registry as described in the preceding paras, the Registrar enters the particulars of the ship such as : a) Name of the ship and the port to which she belongs. b) Details contained in the Surveyors Certificate. c) Particulars respecting her origin as revealed in the declaration of ownership. d) the name and description of her registered owner and, if there are more owners than one, the number of shares owned by each of them; and e) Name of the Master, in the Registry Book. The Registrar issues thereafter to the owners a certificate of registry retaining the Surveyor’s certificate, builders certificate, instrument of sale by which the ship was sold, and the declaration of ownership. By Subir Basu 8
Registration of Ship What is Flag of convenience? A flag of convenience (FOC) is a legal practice in shipping that allows ship owners to register their ships in a country other than the one where they live or are citizens. The ship then flies the flag of the country where it's registered, known as the flag state. By Subir Basu 9
Registration of Ship What is Flag of discrimination ? Flag of discrimination is when ships from a specific registry are given preferential treatment when it comes to cargo assignments. In recent years, it has become common for European ships to be registered under "cheap" flags to reduce costs. This practice has no impact on managerial control, as the German ship is still managed by the parent company in Germany, even though it flies the Liberian flag. A common arrangement is to set up branch offices in Liberia, which nominally own the ships, while the parent company manages them as sole agents By Subir Basu 10
Registration of Ship The country of registration is a ship's flag state and determines its nationality as well as which country's laws govern its operation and the behavior of its crew. Each registry has its own rules as to the types of vessels that it will accept for registration. The Liberian Registry, for example, registers seagoing vessels of more than 500 net tons that conduct foreign trade. Vessels over the age of 20 require a waiver as well as the vessel's classification society being willing to issue statutory certificates to the vessel. Vessels 15 years or older must have a Status Report of the vessel's Special Survey to be reviewed by Marine Safety. Registries charge a registration fee. By Subir Basu 11
Registration of Ship The country of registration is a ship's flag state and determines its nationality as well as which country's laws govern its operation and the behavior of its crew. Each registry has its own rules as to the types of vessels that it will accept for registration. The Liberian Registry, for example, registers seagoing vessels of more than 500 net tons that conduct foreign trade. Vessels over the age of 20 require a waiver as well as the vessel's classification society being willing to issue statutory certificates to the vessel. Vessels 15 years or older must have a Status Report of the vessel's Special Survey to be reviewed by Marine Safety. Registries charge a registration fee. By Subir Basu 12
A core principle in public international law is the freedom of the high seas, as laid out in article 87 of UNCLOS (United Nations Convention on the law of the Sea, Which came into force November 1994,is an international treaty that provides a regulatory frame work for the use of world sea’s & oceans to ensure the conservations and equitable usage of resources and the marine environment and to ensure the protection and preservation of the living resources of the sea.). To balance this freedom with the need to avoid disorder and misuse, international law has provided a framework for the regulation of shipping. This framework rests upon two core rules: Registration of Ship By Subir Basu 13
each State shall fix the conditions for the grant of its nationality to ships, for the registration of ships in its territory, and for the right to fly its flag (article 91 of UNCLOS); and the State must effectively exercise its jurisdiction and control in administrative, technical and social matters over ships flying its flag (article 94 of UNCLOS). Registration of Ship By Subir Basu 14
Open registry/closed registry Each country sets its own laws and regulations on the registration of ships. Some countries only register vessels with ties to the country through ownership or crewing ("closed registries"). Other countries allow foreign-owned or controlled vessels to use their flag through an "open registry." Others just choose not to allow the use of their flag for international trade at all . Since open registries are now widely used around the world, IMO has focused on a strategic approach to ensuring that flag States adequately assume jurisdiction and control over ship-owners and ships that are flying their flags Registration of Ship By Subir Basu 15
An open registry of ships allows foreign-owned vessels to use a country's flag, while a closed registry only allows vessels with ties to the country through ownership or crewing. Open registries are accessible to any shipowner and don't have nationality or residency requirements. Shipowners can register their vessels in these countries and follow the laws of the registry. The flag of the open registry country that is being flown by the shipowner is called a "flag of convenience ". Registration of Ship By Subir Basu 16
Maritime Administration: The flag State has a competent maritime administration under its direction and control. The Maritime Administration of such a state monitors the implementation of rules and regulations in accordance with international and national agreements, as well as compliance with the legal aspects of shipping . The flag state maritime administration ensures: control over the observance of international laws and regulations for ships operating under the flag of this state; control over the implementation of the survey of the ship by authorized inspectors in order to comply with applicable international rules and regulations ; Registration of Ship By Subir Basu 17
the presence on the vessel of the relevant necessary documents (confirming the right to fly the flag, the right to property, required by international conventions and agreements, of which this state is a member, etc.); application of the principles of registration of ships in accordance with the laws and regulations of such a state and the provisions of the relevant Conventions and agreements, as well as amendments thereto. The State of Registry requires the provision of all relevant information necessary for full identification and accountability in relation to ships flying its flag. Registration of Ship By Subir Basu 18
Flag Selection: For a ship-owner, choosing a flag is one of the main business decisions. For the country registering ships under its flag, this action implies liability other than income. For international organizations such as the International Maritime Organization (IMO), the International Labor Organization (ILO), the Food and Agriculture Organization (FAO), as well as for national governments interested in clean oceans and safe shipping, compliance with international environmental, labor standards, and safety regulations are in high priority and closely related to the flag of the vessel. Registration of Ship By Subir Basu 19
Registration of Ship Only Indian citizens and entities registered in India can hold a vessel registered in India or flying an Indian flag ( National or closed registry) unlike popular shipping open registries like Panama , Liberia, Marshall Islands, Bahamas etc where the registration is open to foreign nationals as well. Panama is the registered flag of more than a quarter of the world's ocean going tonnage registered By Subir Basu 20