COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(90) 219 final 
Brussels,1 June 1990 
Proposal for a 
COUNCIL REGULATION (EEC) 
on the transfer of ships from one register to another within the Community 
(presented by the Commission) 
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EXPLANATG^ MT^nRATJTTTM 
I. General norelri^nVfriHTP 
Although there are international conventions and regulations on maritime 
safety and the prevention of maritime pollution, transferring a ship to the 
flag of another Member State is often a costly operation for shipowners. 
The international conventions establishing standards for safety and 
pollution prevention at sea leave room in certain areas for interpretation 
or the exercise of discretion by the Contracting Parties. These 
deficiencies have been made good by the Contracting Parties but, 
unfortunately, without harmonization. Tujrfberaare, a number of governments 
have laid down additional rules establishing standards other than those set 
by International Maritime Organization (TTO) conventions. 
National governments do not normally recognize certificates issued by 
another country. If a ship is to be transferred from one register to 
another it has to undergo an inspection to ensure that it complies with the 
safety regulations of the receiving country. This practice obliges the 
shipowner to undertake a partial conversion or refit of the vessel he is 
purchasing. 
In practice, even where a vessel complies with international safety 
standards, is covered by valid certificates and has passed the Port State 
Control inspection, at the time of its transfer to another flag the 
shipowner may be required to replace or adapt equipment or to submit it for 
additional type-approval tests under the rules of the new State of 
registry. 
The delays and additional costs to the shipowner arising from these 
formalities are reflected in the ship's operating costs. It is obvious 
that such practices are not in accordance with the aims of the 
Single Market. Moreover, the shipping industry has long since sought the 
abolition of these obstacles to trade in ships. 
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For this reason, in drawing up measures for improving the operating 
conditions of Community shipping, the Commission identified the problem of 
transferring ships from one register to another within the Community in its 
Communication entitled "A Future for the Community Shipping Industry". 1 
As a parallel measure to setting up a Community Register, the Commission 
advocated the mutual recognition of ships' technical equipment on the basis 
of the "new approach" to technical harmonization and standardization 
adopted by the Council2 having regard to HO standards. 
The Commission considers that, without prejudice to the safety standards 
laid down at international level or to the general level of maritime 
safety, no technical requirements should be imposed which would inrpede the 
transfer of a Community-registered vessel from one Community shipowner or 
flag to another. Consequently, the Commission has suggested that, during 
the period of time required to set up the Community Register, steps should 
be taken to abolish nationally imposed technical barriers. 
Accordingly, in its proposal for the establishment of a Community 
Register.3 the Commission proposed that any vessel for which 
classification documents and certificates have been issued and which 
complies with the basic technical standards to be adopted by the Council 
before 1 July 1991, as provided for in the Treaty, may be transferred to 
the register of another Member State without having to comply with 
additional technical requirements. 
The Commission's approach to the siinplifioation of such transfers is 
shared by the Economic and Social Committee and the Council. Parliament 
will shortly debate the Commission's proposals on shipping. 
The Economic and Social Committee has emphasized the need to avoid 
cumbersome administrative procedures resulting from the interference of 
Community rules with those laid down by TMD or the individual 
Member States. 
1 004(89)266 final. 3.8.1969. 
2 Council Resolution of 7 May 1986 (OJ C 136. 4.6.1965). 
3 Proposal for a Council Regulation Included in the abovementioned 
Communication. 
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The Conncil has called on the Commission to present a proposal as soon a^ 
possible based on the principle of mutual reoo^tion^eSii^ 
^^^^tf^°^,fandaj>dS- to ^ <*»**. s** a proposal would make an immediate contribution to improving the ccn^titivenessof Community shipping.1 
The Commission is aware that the full free movement of goods will only be 
reached through the principle of technical harmonisation of ship equipment 
and certification as defined in the abovementioned "new approach". The 
Commission ±s of the opinion that in the meantime a first and positive step 
in this direction could be reached through the proposed procedure allowing 
for the free transfer of ships within the Community. 
Starting from the principle of compliance with the international 
conventions on safety and the prevention of marine pollution, the 
Commission proposes mutual recognition of the safety level attested to by 
international certificates when a vessel flying the flag of a Member State 
of the Community is re-registered in another Member State. Where the 
vessel concerned complies with international standards, the Member States 
i?h™pH undertake not to impose their national technical regulations which 
sometimes differ from those laid down in international conventions. 
The Commission, supported by government experts, considers that passenger 
ships should not, at this stage, be covered by this Regulation, in view of 
their distinctive features and their uses*, they are often constructed to 
meet additional requirements other than those laid down in the 
international conventions since they have to sail in waters affected by 
particular weather conditions. Furthermore, where these vessels (especially 
the older ones) are concerned, there are differences in the way in which 
the conventions are interpreted, particularly as regards the structural 
rules on fire protection and accident prevention, health and hygiene. 
Nevertheless the Commission undertakes to examine as soon as possible with 
the experts the possibility of including passenger vessels in the scope of 
the regulation, offering all the necessary guarantees on the safety level. 
1 Conclusions of the Council meeting of 4-5 December 198G. 
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The Commission also considers that the Council's wish, that a short and 
general proposal in the spirit of the internal market be submitted to 
it, can best be met by a regulation. 
The Commission proposes setting up a Committee of experts to resolve any 
conflicts of interpretation which might arise from divergences of 
interpretation of the requirements of the international safety «** 
pollution prevention conventions or recognition of oertifloatee issued by 
classification societies. The problems relating to the recognition of such 
certificates concern the legal responsibility of the Member States which 
issue certificates of seaworthiness - a matter which goes well beyond the 
scope of this proposal. 
In conclusion, the Commission wishes to stress that this proposal for a 
Regulation is without prejudice to: 
- the application by the Member States of HO or other international 
conventions; 
- the application of Community rules pursuant to existing or subsequent 
legislation; 
- the role of the BD in drafting and interpreting international 
conventions on safety and the prevention of marine, pollution. 
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II. SneclAl rnnsi^ftr^^^ 
Article 1 
In order to make this Regulation easier to read, thijs Article defines the 
terms relating to international rules and regulations used in the 
Article 2 
This Article defines the scope of the Regulation. Since application of the 
SOLAS (1974), LL 66 and MAKPCL 73/78 Conventions ensures a high level of 
maritime safety and prevention of pollution by ships which is acceptable 
within the Community and without prejudice to the application of other 
international conventions and Community rules, the recognition of 
certificates is limited to the abovementioned Conventions. 
The tonnage limit is that laid down in the conventions in respect of cargo 
vessels providing international transport services. 
The introduction of an age limit and a requirement that vessels be covered 
by valid certificates will help to increase the level of safety at sea and 
the prevention of marine pollution within the Community. Passenger liners 
are excluded on the grounds of their distinctive characteristics. The 
conditions governing registration mean that only vessels flying the flag of 
a Member State of the Community can reap the benefit of this Regulation and 
ensure that standards of safety and pollution prevention are complied with 
before transfer. 
Article 3 
The non-application of national technical rules, combined with an 
acceptable level of safety and pollution prevention, makes it easier for 
vessels which comply with international standards to be transferred from 
one register to another within the Community without barriers to trade. 
The issue of new certificates Includes the acceptance of the 
interpretations o^ methods of implementation of the conventions of other 
Member States made for the purposes of the ships design and equipment, in 
so far as they are in compliance with the provisions of the conventions, 
and of the approvals of particular fittings, materials, appliances or 
apparatuses, or type thereof, fitted on board the ship. 
The national governments are responsible for Issuing the international 
certificates relating to the safety of, and the prevention of pollution by, 
vessels and their equipment. The Member State to whose register the vessel 
is being transferred should retain a limited right of inspection in order 
to ensure that vessels flying the flag of a Member State of the Community 
meet with the standard of safety and prevention of marine pollution set by 
the abovementioned conventions. 
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Artlcie i 
This Article ensures compliance with the principles underlying the 
Regulation when the certificates issued pursuant to Article 3 are renewed 
extended or revised. «ucwoa, 
Article 5 
The purpose of this Article is to set up a procedure of appeal to the 
Commission to safeguard the objective of transfer of ships which comply 
with the international safety and pollution prevention requirements, 
without barriers to trade and unnecessary costs. 
Article 6 
In the spirit of Articles 100 A (3) and 130 R of the Treaty it is necessary 
to insert a safeguard clause to permit a Member State to act in oases of 
serious danger to safety or the environment. 
Article 7 
This Article establishes a Committee composed of maritime safety experts to 
assist the Commission in the implementation of the regulation. 
Article S 
This Article describes the procedure for consulting the Committee in the 
cases foreseen in Articles 5 and 6. This procédure is in conformity with 
the Council décision of 13/7/1967 laying down the procedures for the 
exercise of implementing powers conferred on the Commission (87/373/EBC). 
Article 9 
This Article specifies the tasks of the Committee. The Committee will 
contribute to ensuring not only that vessels can be re-registered without 
barriers to trade or extra costs but also that maritime safety and 
pollution prevention standards are cxamplied with in ttoe Community. The 
Committee shall decide its own composition and rules of procedure. 
Article 10 
No comments. 
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PROPOSAL FOR A 
COUNCIL REGULATION (EEC) 
ON THE TRANSFER OF SHIPS FROM ONE REGISTER 
TO ANOTHER WITHIN THE COMMUNITY 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community and in particular Article 84 (2) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of Economic and Social 
Commi ttee , 
Whereas the establishment and functioning of the internal 
market involves the elimination of technical barriers 
to the transfer of ships between the national registers 
while safeguarding a high level of safety of ships and 
environmental protection in conformity with international 
regul ationsj. 
Whereas measures to facilitate the transfer of ships within 
the Community are required to free European shipowners from 
unnecessary costs and administrative procedures involved in 
a change of register within the Community and also to 
improve the operating conditions and the competitive 
position of Community shipping*. 
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Whereas the issue of international certificates for safety 
and pollution prevention, provided under the 1974 International Convention for 
the Safety of Life at Sea C1974 SOLAS), the International 
Convention on Load Lines 1966 (LL 1966) and the 
International Convention for the Prevention of Pollution 
from Ships 1973, as modified by its Protocol of 1978 (MARPOL 
73/78), is the reponsibility of states; 
Whereas the international Conventions leave important points 
of interpretation to the appreciation of individual 
contracting States; 
Whereas, based on their respective interpretations of the 
Conventions, Governments of Member States issue, to all 
ships flying their flags that are subject to the provisions 
of these Conventions, international certificates certifying 
their compliance with these provisions; 
Whereas the transfer of ships between the flags of Member 
States must not be impeded by technical objections, provided 
that the ship is recognized by a Member State as complying 
with the provisions of these international Conventions, and 
is equipped with materials and appliances which are deemed 
satisfactory by a Member State; 
Whereas the Member States enforce national technical 
regulations, some provisions of which contain requirements 
other than those 1n tho International Conventions and 
associated standards; 
Whereas an adequate procedure should be established in view 
of the introduction of new provisions or possible 
divergences in the interpretation of the existing 
requirements; 
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Whereas to assist the Commission in assuring the 
implementation of this Regulation with a view to achieving 
the objective to facilitate the transfer of vessels within 
the Community without barriers to trade while safeguarding 
the high level of maritime safety and environmental 
protection in the Community, a committee of maritime safety 
experts should be established, 
HAS ADOPTED THIS REGULATION : 
Article 1 
For the purpose of this Regulation : 
a) "Conventions" means the 1974 International Convention for 
the Safety of Life at Sea (1974 SOLAS), the International 
Convention on Load Lines, 1966 (LL66), both as amended at 
1 January 1991 and the International Convention for the 
prevention of Pollution from ships 1973, as modified by 
its Protocol 1978 (MARPOL 73/78) and their related 
Resolutions adopted by the International Maritime 
Organisation. 
b) "Requirements" means the safety and pollution prevention 
requirements as laid down in the Conventions. 
c) "Certificates" means certificates issued by or on behalf 
of a Member State in accordance with the Conventions as 
well as certificates issued for chemical tankers and gas 
carriers built before 1 July 1986, In accordance with the 
Bulk Chemical Code/A .212 (VII)1 or the Bulk Gas Code/A 
328 (IX)~? . 
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Article 2 
This Regulation shall apply to cargo ships of 500 tons gross 
tonnage and upwards which are 
a) built on or after 25 May 1980 or built before that date 
but certified by a Member State as complying with the 
regulations for new ships as defined in the 1974 SOLAS 
Convention and 
b) flying the flag of, and registered in, a Member State and 
in active service under that flag, and 
c) carrying valid certificates. 
Article 3 
1. Member States shall not withhold from registration a cargo 
ship registered in another Member State complying with 
the requirements and carrying valid certificates. 
However, Member States party to the Convention on the 
protection of marine environment in the Baltic Sea area 
may impose such additional requirements as provided for 
therein . 
2. New certificates shall be issued under the same 
conditions. 
3. Nevertheless on transfer a ship may be subjected to 
inspection by the receiving Member State to confirm that 
the actual condition of the ship and its equipment 
corresponds with its certificates. 
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Article 4 
In so far as requirements remained unchanged for existing 
ships, at the times of renewal, extension or revision 
of the certificates issued under Article 3^ 
Member States shall not impose requirements other than those 
initially prescribed for the full term certificates. 
Article 5 
Member States shall immediately notify to the Commission any 
refusal to issue new certificates for reasons based on 
divergences of interpretation of the requirements. 
The refusal shall be confirmed or revoked in accordance with 
the procedure laid down in Article 8, not less than one month 
after notification, unless the Commission is informed of an 
agreement between the Member States involved. 
Article 6 
Where a Member State considers that a ship cannot be 
registered under Article 3 for reasons of 
serious danger to safety or the environment outside the 
scope of certificates registration may be suspended for a 
period not exceeding three months and the Member State shall 
without delay bring the matter before the Commission, giving 
the reasons therefor. The suspension shall be confirmed or 
revoked in accordance with the procedure laid down in 
Arti cle 8. 
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Article 7 
The Commission shall be assisted by a Committee, 
(hereinafter called "the Committee") composed of maritime 
safety representatives of the Member States and chaired by a 
representative of the Commission. 
Article 8 
Where the procedure defined in this Article is used the 
representative of the Commission shall submit to the 
committee a draft of the measures to be taken. The committee 
shall deliver its opinion on the draft within a time limit 
which the chairman may lay down according to the urgency of 
the matter. The opinion shall be delivered by the majority 
laid down in Article 148 (2) of the Treaty in the case of 
decisions which the Council is required to adopt on a 
proposal from the Commission. The votes of the 
representatives of the Member States within the Committee 
shall be weighted in the manner set out in that Article.The 
chairman shall not vote. 
The Commission shall adopt the measures envisaged if they 
are in accordance with the opinion of the committee. 
If the measures envisaged are not in accordance with the 
opinion of the committee, or if no opinion is delivered, the 
Commission shall, without delay, submit to the Council a 
proposal relating to the measures to be taken. The Council 
shall act by a qualified majority. If, on the expiry of 
six weeks from the date of referral to the Council, the 
Council has not acted, the proposed measures shall be 
adopted by the Commission. 
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Article 9 
The Committee, apart from the tasks laid out in Articles 5 and 6 
may be consulted by the Commission : 
- in ensuring that standards of maritime safety and 
environmental protection within the Community are not 
reduced through application of this Regulation. 
- on any matter relating to the implementation of this 
Regulation. 
The Committee shall draw up its rules of procedure. 
Article 10 
This Regulation shall enter into force on 1 January 1991 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
Done at Brussels, For the Council 
The President 

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COMPETITIVENESS AND EMPLOYMENT IMPACT STATEMENT 
1 • What Is the main reason for Introducing the, measure ? 
This proposal concerns the transfer of ships from one register to 
another within the Community. It secures mutual recognition of ship 
certificates Issued by Member States and prohibits technical 
barriers to trade In the transfer of ships. Through Its 
Implementation the proposed regulation would eliminate many 
unnecessary costs borne by Community shipowners. 
2. Features of the business in Question 
AM enterprises which use ships for community and International 
trade. 
3. What obligations does this measure Impose directly on business ? 
No additional obligations. 
4. What Indirect obligations are national, regional or local 
authorities likely to Impose on business ? 
No additional obligations. 
5. Are there any special provisions in respect of SME's ? 
None 
6. 'What Vs the likely effect on ; 
a) The competitiveness of the business 
The competitiveness of Community shipping will be enhanced 
through the elimination of unnecessary costs involved In the 
transfer of ships. 
b) Employment 
PosltIve. 


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