PROPOSAL FOR A COUNCIL REGULATION ( EEC ) ON THE TRANSFER OF SHIPS FROM ONE REGISTER TO ANOTHER WITHIN THE COMMUNITY
Date: 1990-06-01
Institutions: European Commission
Subjects: directory, pollution from ships, safety standard, transport document, vessel

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) 

-T-

I. General norelri^nVfriHTP 

EXPLANATG^ MT^nRATJTTTM 

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. 

- 2 -

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. 

- 3 -

The Conncil has called on the Commission to present a proposal  as soon a^ 
possible  based on the principle of mutual r e o o ^ t i o n ^ e S i i^ 
^ ^ ^ ^tf ^ ° ^ , fa n d a j > d S-  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. 

- 4 -

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. 

II. SneclAl  rnnsi^ftr^^^ 

Article 1 

- 5 -

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. 

-e-

Artlcie i 

This Article ensures compliance with the principles underlying the 
Regulation when the certificates issued pursuant to Article 3 are renewed 
«ucwoa, 
extended or revised. 

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. 

- 7 -

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*. 

- 8 -

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; 

- 9 -

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  ( V I I)1  or  the  Bulk  Gas  Code/A 
328  (IX)~? . 

- 10 -

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. 

- 11 -

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. 

- 12 -

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. 

- 13 -

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 

-  14 -

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. 

AS  ' 

ISSN  0254-1475 

COM(90) 219 final 

DOCUMENTS 

EN 

07 

Catalogue number : CB-CO-90-226-EN-C 
ISBN 92-77-60502-2 

PRICE 

1 - 30 pages: 3.50 ECU 

pet additional 1.0 pages: 1.25 ECU 

Office for Official Publications of the European Communities 
L-2985 Luxembourg