Ship

Registration and
Classification.
Ship registration
⚫ Ship registration is the process by which a ship is
documented and given the nationality of the country to
which the ship has been documented.
⚫ The nationality allows a ship to travel internationally
as it is proof of ownership of the vessel.
⚫ International law requires that every merchant ship be
registered in a country, called its flag state.
⚫ The ship sails under the flag of the country of
registration.
⚫ The flag determines the legal jurisdiction
under which a vessel operates. Ship
registration has been an integral concept
in the management of ships
⚫ All ships regardless of type and purpose
Has to be registered as beloging to some
nation in the world
⚫ UNCLOS article 91 stipulates that the
international legislator provides that
nationality may be granted to a ship upon
meeting certain conditions fixed by each
state, the fulfillment of which permits
registration in the state’s registry.
⚫ These conditions should evince a genuine link
between the state and the ship
⚫ It has to belong to one particular country
⚫ To be subject to that country’s laws
⚫ Port of registry is an important particular
of a ship
⚫ Ships shall sail under the flag of one State
only and shall be subject to its exclusive
jurisdiction on the high seas
⚫ A ship may not change its flag during a
voyage
⚫ The state shall assume jurisdiction
under its internal law over each ship
flying its flag and its master, officers
and crew in respect of administrative,
technical and social matters
concerning the ship.
⚫ The country in which the ship is registered
must ensure that the ship is subject to exclusive
jurisdiction of the country at High seas
⚫ Internal law over crew and other employees
for administrative technical and social matters
⚫ Standard of construction Equipment & Survey of
the ship
⚫ Manning Labour conditions training of crews
⚫ Safe navigation of ships
⚫ Reduction and control of marine pollution
⚫ Investigation of casualities
⚫ Every State shall take such measures for ships
flying its flag as are necessary to ensure
safety at sea with regards to
⚫ the construction, equipment and
seaworthiness of ships
⚫ the manning of ships, labour conditions and
the training of crews, taking into account the
applicable international instruments
⚫ each ship, before registration and thereafter
at appropriate intervals, is surveyed by a
qualified surveyor of ships,
Companies chose to flag out due to
a combination of different factors,
⚫ Taxation advantages
⚫ The reduction of crew costs
⚫ Trade union attitudes towards flag
states
⚫ Manning regulations
⚫ Market uncertainty
⚫ INDIAN MERCHANT SHIPPING ACT 1958
PART IV DEALS WITH REGISTRATION OF INDIAN
SHIPS
Survey and TONNAGE measurement of ships before
registry
⚫ The owner of an Indian ship who applies for registry under
this Act shall, before registry, cause her to be marked
permanently in the prescribed manner and to the
satisfaction of the registrar and any ship not so marked may
be detained by the registrar
⚫ Declaration of ownership on registry
⚫ the principal officer of the Mercantile Marine Department,
and at any port such authority as the Central Government
may, by notification in the Official Gazette, appoint, shall
be the registrar of Indian ships at that port
TYPES OF SHIP REGISRIES
⚫ CLOSED OR TRADITIONAL
REGISTRIES
⚫ OPEN REGISTRIES
⚫ OFFSHORE OR INTERNATIONAL
REGISTRIES
⚫ BARE BOAT REGISTRIES
 CLOSED REGISTRY
⚫ A registry that is open only to ships of its own nation is
known as a traditionalor national registry.
⚫ In other words they allow only vessels that are owned by
companies or persons that are residents of that country.
⚫ Traditionally, closed registries have a two-fold
requirement, firstly, incorporation in country of registration
and secondly, principal place of business in country of
registration.
⚫ In a closed registry, the tax is charged on the earnings as
compared to open, wherein the taxes are on the basis of
tonnage. India follows closed registry.
 Flag Of Convenience FOC
An FOC is a flag of a state whose
government sees registration not as a
procedure necessary in order to impose
sovereignty and hence control over its
shipping but as a service which can be
sold to foreign ship owners wishing to
escape the fiscal or other consequences
of registration under their own flags.
⚫ Flags of convenience provide certain fiscal and
employment advantages to the registered ships
and to the companies to which these ships belong.
⚫ A company that registers a ship in a particular
country is subject to that country’s commercial
laws.
⚫ These laws determine the company’s liability to
pay tax and may impose regulations in such areas
as company organisation, auditing of accounts,
employment of staff and limitation of liability that
affect the economics of the business.
 Advantages of FOC
⚫ It gives greater freedom and flexibility to the
shipowner to man his vessel, in respect of the
quantity, quality and nationality of the crew.
⚫ A very small tax is levied against the vessel
ownership and no taxation against the earnings
of the vessel. The tax is a subscription tax per
net registered ton (tonnage tax).
⚫ The shipping company is given considerable
freedom over its corporate activities.
⚫ There are few regulations regarding the
appointment of directors and the administration
of business.
 Flag of Convenience
⚫ Antigua and Barbuda, Aruba (Netherlands),
Bahamas, Barbados, Belize, Bermuda (UK),
Burma, Cambodia, Canary Islands (Spain),
Cayman Islands (UK), Cook Islands (New
Zealand), Cyprus, German International Ship
Register (GIS), Gibraltar (UK), Honduras,
Lebanon, Liberia, Luxembourg, Malta,
Marshall Islands (USA), Mauritius,
Netherlands Antilles, Panama, St. Vincent, Sri
Lanka, Tuvalu, Vanuatu.
Classification Society

A classification society is a non-governmental

organization that establishes and maintains technical
standards for the construction and operation
of ships and offshore structures.
Classification surveyors inspect ships to make sure
that the ship, its components and machinery are built
and maintained according to the standards required.
 Responsibilities

⚫ Classification societies set technical rules

⚫ It confirm that designs and calculations meet these
rules
⚫ It survey ships and structures during the process of
construction and commissioning
⚫ It periodically survey vessels to ensure that they
continue to meet the rules
.
⚫ Marine vessels and structures are classified according
to the soundness of their structure and design for the
purpose of the vessel.
⚫ The classification rules are designed to ensure an
acceptable degree of stability, safety, environmental
impact, etc.
⚫ In particular, classification societies may be authorised
to inspect ships, oil rigs, submarines, and other marine
structures and issue certificates on behalf of the state
under whose flag the ships are registered.
⚫ As well as providing classification and certification
services,
.
There are more than 50 marine classification
organizations worldwide, some of which are
⚫ Lloyd's Register-LR-1760-London
⚫ American Bureau of Shipping-ABS-1862-Houston
⚫ Nippon Kaiji Kyokai (ClassNK)-NK-1899-Tokyo
⚫ Russian Maritime Register of Shipping-RS-1913-Saint
Petersburg
⚫ Indian Register of Shipping-IRS-1975-Mumbai
.
International Association of Classification Societies
(IACS)
⚫ The role of classification and Classification Societies
has been recognized in the International Convention
for the Safety of Life at Sea, (SOLAS) and in the 1988
Protocol to the International Convention on Load Lines
⚫ A vessel built in accordance with the applicable Rules
of an IACS Member Society may be assigned a class
designation by the Society on satisfactory completion
of the relevant surveys.
.
A classification survey is a visual examination that
normally consists of:
• an overall examination of the items identified in the
Rules
for survey;
• detailed checks of selected parts, on a sampling basis;
• witnessing tests, measurements and trials where
applicable.
In addition to the Common Rules projects, IACS
Resolutions on technical or procedural matters may
be
developed, generally through specialist Working
Groups