Proposal for a Regulation of the European Parliament and of the Council on the transfer of cargo and passenger ships between registers within the Community
Date: 2003-08-05
Institutions: European Commission
Subjects: cargo vessel, carriage of passengers, common transport policy, deepening of the European Union, maritime safety, maritime transport, ship's flag, transport regulations, vessel

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 05.08.2003
COM(2003) 478 final

2003/0180 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL

on the transfer of cargo and passenger ships between registers within the Community

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

BACKGROUND AND JUSTIFICATION

In  March  1991,  the  Council  adopted  Regulation  (EEC)  N°  613/91  on  the  transfer  of  ships
from  one  register  to  another  within  the  Community.  Regulation  (EEC)  N°  613/91  seeks  to
reduce  the  costs  and  administrative  procedures  involved  in  a  change  of  register  within  the
Community,  thereby  improving  the  competitiveness  of  Community  shipping,  whilst
safeguarding maritime safety in accordance with international conventions.

The  Regulation  strikes  a  balance  between  internal  market  considerations  (elimination  of
technical  barriers  to  the  transfer  of  ships  between  Member  States)  and  maritime  safety
imperatives (a high level of ship safety and environmental protection). Its basic philosophy is
the recognition at European level that the safety standards enshrined in IMO Conventions are
appropriate.

In  accordance  with  the  Regulation,  Member  States  forfeited  the  right  to  withhold  from
registration, for technical reasons arising from three IMO Conventions (1974 SOLAS, LL66
and  MARPOL  73/78)  cargo  ships  registered  in  other  Member  States  complying  with  the
requirements  set  out  in  these  Conventions  and  carrying  valid  certificates  and  approved
equipment.  Ships  in  these  conditions  may  thus  be  re-flagged  subject  only  to  possible
inspection by the receiving flag maritime administration aimed at confirming that their actual
condition corresponds to their certificates. Residual divergences among Member States as to
the  interpretation  of  the  requirements  and  provisions  that  the  Conventions  leave  to  the
discretion  of  the  Parties  are  referred  to  the  Commission  for  subsequent  decision  with  the
assistance  of  a  Committee  of  representatives  of  the  Member  States,  chaired  by  a
representative of the Commission.

More than ten years after the entry into force of the Regulation (EEC) N°613/91 (1 January
1992),  it  is  appropriate  to  seek  to  improve  Community  rules  on  the  transfer  of  ships.  The
reasons for this exercise are threefold:

-
First  of  all,  the  substantial  international  and  Community  regulatory  developments
occurred  since  the  Regulation  was  adopted.  In  fact,  not  only  has  IMO  amended  relevant
international  conventions  and  adopted  related  resolutions  since  then  but  also,  more
significantly,  a  large  body  of  Community  acquis  in  maritime  safety  was  adopted  after  the
entry  into  force  of  the  Regulation.  Texts  that  may  have  an  impact  on  the  scope  of  the
Regulation, such as Council Directive 98/18/EC on safety rules and  standards for passenger
ships1,  or  on  the  drafting  of  some  of  its  provisions,  such  as  Council  Directive  94/57/EC  on
common rules and standards for ship inspection and survey organisations and for the relevant
activities  of  maritime  administrations2,  Council  Directive  95/21/EC  concerning 
the
enforcement,  in  respect  of  shipping  using  Community  ports  and  sailing  in  the  waters  under
the  jurisdiction  of  the  Member  States,  of  international  standards  for  ship  safety,  pollution
prevention  and  shipboard  living  and  working  conditions  (port  State  control)3  and  Council

1

2

3

OJ L 144, 15.5.1998, p. 1. Directive as last amended by Directive 2003/../EC (OJ L …, ………, p. ..).
OJ  L  319,  12.12.1994,  p.  20.  Directive  as  last  amended  by  Directive  2002/84/EC  (OJ  L  324,
29.11.2002, p. 53).
OJ L 157, 7.7.1995, p. 1. Directive as last amended by Directive 2002/84/EC (OJ L 324, 29.11.2002, p.
53).

2

                                                
Directive  96/98/EC  on  marine  equipment4  were  adopted  and  themselves  amended,  in  some
cases substantially, without a formal articulation with the Regulation being established;

-
The second set of reasons relates to the experience gathered in the implementation of
Regulation  (EEC)  N°613/91.  The  Commission's  information  on  the  implementation  of  the
Regulation  derives  mostly  from  data  collected  in  the  context  of  the  pre-judicial  phase  of
infringement  procedures  following  complaints  from  operators  and  from  recent  submissions
from  EC  Shipowners,  who  highlighted  issues  such  as  the  subsistence  of  divergent
interpretations  of  the  Conventions  and  the  relation  between  the  transfer  of  ships  and  the
prerogatives  of  flag  States  and  call,  among  others,  for  the  extension  of  the  scope  of  the
Regulation to cover passenger ships;

Finally,  current  difficulties  are  likely  to  increase  in  the  context  of  the  impending
-
enlargement  of  the  Union,  which  will  have  considerable  quantitative  and  qualitative  impact
on  the EC fleet.  They  will also  tend  to  become more  apparent  as  shipowners  may  submit  a
growing number of requests for the transfer of ships from one register to another  within the
Community.

2.

CONTENT OF THE PROPOSAL

General considerations

The proposal aims at introducing improvements in three main areas:

-

-

-

Enlargement of the scope of the Regulation to cover passenger ships;

Better articulation with other Community maritime safety instruments; and

Reinforcement of the co-operation between national maritime administrations.

Enlargement of the scope of the Regulation to cover passenger ships

According to its Article 2, Regulation (EEC) N° 613/91 is applicable to cargo ships (of 500
tons  gross  tonnage  and  upwards).  At  the  time  of  adoption  of  the  Regulation,  the  question
whether the Regulation should also cover passenger ships was discussed. In the end, however,
Commission  and  Member  States'  experts  concluded  that,  given  the  distinctive  features  and
uses  of  passenger  ships  (additional  construction  requirements)  and  the  existence  of
differences in the  way  in  which  conventions were  interpreted,  it  was  not  appropriate  at  that
time to include passenger ships in the scope of the Regulation. Nevertheless, as stated in the
explanatory  memorandum  of  the  proposal  leading  to  the  Regulation,  the  Commission
undertook  to  re-examine  that  possibility  as  soon  as  possible.  In  1996,  in  the  explanatory
memorandum  of the proposal leading to  the  adoption of  Directive  98/18/EC  on  safety  rules
and  standards  for  passenger  ships,  the  Commission  announced  its  intention  to  propose  the
amendment of the Regulation in order to extend its scope to passenger ships.

Since  the  adoption  of  Regulation  (EEC)  N°  613/91,  the  international  regime  applicable  to
passenger  ships  has  been  strengthened  and  refined  through  the  adoption  of  a  considerable
number  of  IMO  amendments  to  1974  SOLAS  and  an  increased  convergence  of  the
interpretations  of  the  Convention's  rules  and  standards.  With  the  adoption  of  Directive

4

OJ L 46, 17.2.1997, p. 25. Directive as last amended by Directive 2002/84/EC (OJ L 324, 29.11.2002,
p. 53).

3

                                                
98/18/EC,  a  fully  harmonised,  Community-wide,  technical  regime  was  established  for
passenger ships engaged in domestic traffic built on or after the 1st of July 1998. This uniform
regime  was  reinforced  through  the  adoption  on  14  April  2003  of  European  Parliament  and
Council  Directive  2003/25/EC  on  specific  stability  requirements  for  ro-ro  passenger  ships5
and of European Parliament and Council Directive 2003/24/EC amending Council Directive
98/18/EC of 17 March 1998, on safety rules and standards for passenger ships6.

From a technical point of view, there is no overriding argument to apply different standards to
passenger  ships  according  to  their  commercial  use  in  domestic  or  international  voyages.
Indeed, in the context of the performance of the obligations of Flag States, most EU national
administrations  and  classification  societies  acting  in  their  behalf  use  the  same  standards  to
inspect passenger ships, without differentiating between their use in domestic or international
voyages.

This practice, together with the fine-tuning of the international regime applicable to passenger
ships  and  the  growing  convergence  of  the  interpretations  of  the  1974  SOLAS  lead  the
Commission to propose the extension to all passenger ships built on or after the reference date
taken  into  consideration  in  Directive  98/18/EC  (1  July  1998)  or  built  before  that  date  but
certified as complying with the requirements set out in 1974 SOLAS for ships built on or after
1 July 1998, of the regime for the transfer of register set out in Regulation (EEC) N° 613/91.

Better articulation with other Community maritime safety instruments

Most  of  the  Community  maritime  safety  acquis  was  adopted  after  Regulation  (EEC)
N°613/91.  It  is  therefore  important  to  establish  the  appropriate  articulation  of  the  new
Regulation with several Community instruments, in particular with:

Directive 94/57/EC on classification societies. This is done through a direct reference

-
to this Directive for the purposes of defining "recognised organisation";

Directive 96/98/EC on marine  equipment.  This  is  done  through  a  direct  reference  to

-
this Directive when referring to type-approved equipment (Article 4(1));

-
Directive  95/21/EC  on  Port  State  control.  Articulation  is  necessary  to  prevent
unintended  consequences  over  the  transfer  of  ships  from  one  register  to  another  of  the
implementation of Article 7b (access refusal to EU ports). Ships to which access is refused are
excluded from the scope of the Regulation.

Reinforcement of the co-operation between national maritime administrations

Article 2 (b) of Regulation (EC) N°613/91 requires that only ships  that  have  been  in  active
service  under  the  flag  of  a  Member  State  for  at  least  six  months  may  be  transferred  to  the
register of another Member State under the Regulation.

Upon reflection, it seems preferable to replace such an arbitrary six-month "quarantine" by a
provision along the lines of those applicable in the context of Transfer of Class Agreements.
Such provision will call  for a  reinforced  co-operation  between  the  maritime  administrations
involved  in  the  transfer  of  a  ship  from  one  register  to  another  within  the  Community.
According to the new rules, the maritime administration of the loosing register  must inform

5

6

OJ L 123 of 17.5.2003, p.22
OJ L 123 of 17.5.2003, p.18

4

                                                
that of the gaining register of the improvements it required, if any, for registering the ship or
renewing her certificates and on overdue surveys and provide it the history file of the vessel.
This is expected to further facilitate the transfer of register  and to contribute to the possible
inspection by the maritime administration of the receiving register being performed within a
shorter delay.

Specific considerations

Article 1

The  first  article  makes  clear  that  the  objective  of  the  Regulation  is  to  strike  an  adequate
balance  between  internal  market  considerations  (free  transfer  of  ships)  and  maritime  safety
imperatives (a high level of ship safety and environmental protection).

Article 2

This article contains the definitions of the key terms used in the Regulation. The definitions
are based on the IMO SOLAS Convention (International Convention for the Safety of Life at
Sea).  Definitions  relating  to  passenger  ships,  which  are  necessary,  given  the  extension  of
scope  of  the  Regulation,  are  also  in  line  with  those  under  Directive  98/18/EC  of  17  March
1998 on safety rules and standards for passenger ships.

Point  a)  is  in  line  with  amendments  introduced  by  Article  8  (1)  of  Regulation  (EC)  N°
2099/2002 establishing a Committee on Safe Seas and the Prevention of Pollution from Ships
(COSS).

Article 3

Article 3 defines the scope of the Regulation. The Regulation applies to cargo ships under the
conditions set out in Regulation (EEC) N° 613/91 and to passenger ships built on or after 1
July 1998 or certified as complying with the  requirements set out in 1974 SOLAS for ships
built on or after 1 July 1998.

Ships,  which  were  refused,  access  to  European  ports  in  accordance  with  Article  7b  of
Directive  95/21/EC  on  port  State  control  of  shipping  are  excluded  from  the  free  transfer
regime  set  out  in  the  Regulation  during  the  period  of  their  banning  from  EU  ports.  This
provision is made necessary in the light of the possible inclusion of some Member States, in
particular  following  the  Union's  imminent  enlargement,  in  the  Paris  MOU  black  list.  The
proposed  solution,  exclusion  restricted  to  the  offending  ships,  appears  appropriate  to  tackle
the relatively few "extreme" cases anticipated.

Article 4

Article  4  contains  the  main  obligations  of  Member  States  on  transfer  of  registers,  while
providing for adequate articulation with Directive 96/98/EC on marine equipment.

Paragraph 2 provides for reinforced co-operation between the maritime administrations of the
loosing register and the receiving register. The former must, in particular, inform the latter on
the improvements it required, if any, for registering the ship or renewing her certificates and
on overdue surveys.

5

The maritime administration of the receiving register retains the right of limited inspection in
order to ensure that the vessel meets the standard of safety and prevention of marine pollution
set  out  in  the  Conventions.  The  obligations  to  perform  such  inspection  within  a  reasonable
delay  and  to  refer  the  case  to  the  Commission  if  correspondence  with  the  certificates  and
statements of compliance cannot be confirmed were made explicit.

Article 5

This  article  provides  for  the  rules  governing  the  issue  and  renewal  of  certificates.  No
modification was introduced to the provisions of Regulation (EEC) N° 613/91.

Article 6

This article refers to role of the Commission in case of refusal of register by a Member State
and  to  the  support  to  be  provided  by  the  COSS  Committee  in  matters  related  to  the
interpretation  and  implementation  of  the  Regulation.  No  substantive  amendments  were
introduced  in  relation  to  the  rules  set  out  in  Regulation  (EC)  N°613/91.  In  particular,  the
safeguard clause in cases of serious danger to safety or the environment inspired on Articles
95 and 174 of the Treaty is maintained.

Article 7

This article refers to  the Committee  designed  to  assist  the  Commission  in  the  interpretation
and implementation of the Regulation, in accordance with Article 8 (2) of Regulation (EC) N°
2099/2002 (COSS).

Article 8

Article 8 introduces the obligation for Member States to provide formal, yet succinct, annual
feedback on the implementation of the Regulation.

Article 9

This article refers to the amendment of the Conventions in accordance  with Article 8 (2) of
Regulation (EC) N° 2099/2002 (COSS).

Article 10

For  the  sake  of  clarity  and  simplification,  repealing  Regulation  (EEC)  N°  613/91  and
replacing it by the one now proposed appeared preferable to introducing amendments to the
majority of its articles.

Article 11

No comments.

6

2003/0180 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL

on the transfer of cargo and passenger ships between registers within the Community

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
80(2) thereof,

Having regard to the proposal from the Commission7,

Having regard to the opinion of the European Economic and Social Committee8,

Having regard to the opinion of the Committee of the Regions9,

Acting in accordance with the procedure laid down in Article 251 of the Treaty10,

Whereas:

(1)

(2)

(3)

The  establishment  and  functioning  of  the  internal  market  involve  the  elimination  of
technical barriers to the transfer of cargo and passenger ships between the registers of
Member States. Measures to facilitate the transfer of cargo and passenger ships within
the  Community  are  also  required  to  reduce  the  costs  and  administrative  procedures
involved  in  a  change  of  register  within  the  Community,  thereby  improving  the
operating conditions and the competitive position of Community shipping.

It  is  necessary,  at  the  same  time,  to  safeguard  a  high  level  of  ship  safety  and
environmental protection, in compliance with international conventions.

The requirements set out in the 1974 International Convention for the Safety of life at
Sea (1974 SOLAS), the 1966 International Convention on Load Lines (LL 1966) and
the  1973  International  Convention  for  the  Prevention  of  Pollution  from  Ships,  as
amended  by  the  1978  Protocol  (MARPOL  73/78)  provide  for  a  high  level  of  ship
safety  and  environmental  protection.  The  International  Convention  on  Tonnage
Measurement of Ships, 1969 provides for a uniform system for the measurement of the
tonnage of merchant ships.

7

8

9

10

OJ C […] of […], p.[…]
OJ C […] of […], p.[…]
OJ C […] of […], p.[…]
OJ C […] of […], p.[…]

7

                                                
(4)

(5)

(6)

(7)

(8)

(9)

10)

11)

11

12

13

14

The  international  regime  applicable  to  passenger  ships  has  been  strengthened  and
refined  through  the  adoption  of  a  considerable  number  of  amendments  to  1974
SOLAS  by  the  International  Maritime  Organization  (IMO)  and  an  increased
convergence of the interpretations of the Convention's rules and standards.

The  transfer  of  ships  flying  the  flag  of  a  Member  State  between  the  registers  of
Member  States  should  not  be  impeded  by  technical  barriers,  provided  that  the  ships
have  been  certified  as  complying  with  the  provisions  of  relevant  international
Conventions  by  Member  States  or,  on  their  behalf,  by  the  organisations  recognised
under  Council  Directive  94/57/CE  of  22  November  1994,  on  common  rules  and
standards for ship inspection and survey organisations and for the relevant activities of
maritime administrations11.

In order to ensure a rapid and informed decision by the maritime administration of the
receiving register, the maritime administration of the loosing register should provide it
with  all  relevant  available  information  on  the  ship's  condition  and  equipment.  The
maritime  administration  of  the  receiving  register  should,  nevertheless,  be  able  to
subject the ship to an inspection to confirm its condition and equipment.

Ships which have been refused access to European ports under Article 7b of Directive
95/21/EC of 19 June 1995, on port State control of shipping12 should not benefit from
the possibility to be transferred to another register within the Community until the ban
is revoked;

Relevant  international  Conventions  leave  important  points  of  interpretation  to  the
discretion of the Parties. Based on their own interpretation, Member States issue to all
ships  flying  their  flags  that  are  subject  to  the  provisions  of  relevant  international
conventions  certificates  certifying  their  compliance  with  these  provisions.  Member
States  enforce  national  technical  regulations,  some  provisions  of  which  contain
requirements  other  than  those  in  the  conventions  and  associated  technical  standards.
An appropriate procedure should therefore be established in order to solve divergences
in  the  interpretation  of  existing  requirements  which  may  occur  upon  a  request  for
transfer of register.

In order to enable monitoring  the  implementation of this  Regulation,  Member  States
should provide the Commission with succinct yearly reports.

The measures necessary for the implementation of this Regulation should be adopted
in accordance with Council Decision 1999/468/EC of 28  June 1999  laying  down the
procedures for the exercise of implementing powers conferred on the Commission13.

The  provisions  of  Regulation  (EEC)  N°  613/91  of  4  March  1991  on  the  transfer  of
ships from one register to another within the Community14, are significantly reinforced

OJ  L  319,  12.12.1994,  p.  20.  Directive  as  last  amended  by  Directive  2002/84/EC  (OJ  L  324,
29.11.2002, p.53).
OJ L 157 of 7.7.1995, p. 1. Directive as last amended by Directive 2002/84/EC (OJ L 324, 29.11.2002,
p.53).
OJ L 184, 17.7.1999, p. 23.
OJ  L  68  of  15.3.1991,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  N°  2099/2002  of  the
European Parliament and of the Council.

8

                                                
and  extended  by  this  Regulation.  Regulation  (EEC)  N°  613/91  should  therefore  be
repealed,

HAVE ADOPTED THIS REGULATION:

Article 1

Purpose

The purpose of this Regulation is to eliminate technical barriers to the transfer of  cargo  and
passenger ships between the registers of the Member States while, at the same time, ensuring
a  high  level  of  ship  safety  and  environmental  protection,  in  accordance  with  international
conventions.

Article 2

Definitions

For the purposes of this Regulation:

a)

b)

c)

d)

e)

f)

g)

h)

"Conventions" means the 1974 International Convention for the Safety of Life at Sea
(1974  SOLAS),  the  1996  International  Convention  on  Load  Lines  (LL66),  the
International  Convention  on  Tonnage  Measurement  of  Ships,  1969  and  the
International  Convention  for  the  Prevention  of  Pollution  from  Ships  (MARPOL
73/78)  in  their  up-to-date  versions,  and  related  resolutions  of  mandatory  status
adopted by the International Maritime Organisation (IMO);

"Requirements" means the safety and pollution prevention requirements laid down in
the Conventions;

"Certificates"  means  certificates  issued  by  a  Member  State  or  by  a  recognised
organisation on its behalf in accordance with the conventions;

"Passenger ship" means a ship carrying more than twelve passengers;

"Passenger" means every person other than:

i)

The  master and the members of the  crew  or  other  persons  employed  or
engaged in any capacity on board a ship on the business of that ship; and

ii)

A child under one year of age;

"Domestic voyage" means a voyage in sea areas from a port of a Member State to the
same or another port within that Member State;

"International  voyage"  means  a  voyage  by  sea  from  a  port  of  a  Member  State  to  a
port outside that Member State, or conversely;

"Cargo  ship"  means  a  ship  of  500  tons  gross  tonnage  and  upwards  which  is  not  a
passenger ship;

9

i)

1.

a)

"Recognised  organisation"  means  an  organisation  recognised  in  accordance  with
Article 4 of Directive 94/57/EC.

Article 3

Scope

This Regulation shall apply to:

Cargo ships, carrying valid certificates, which:

i) Were built on or after 25 May 1980, or

ii) Were built before that date, but have been certified by a Member State or
by a recognised organisation acting on its behalf, as complying with the
regulations  for  new  ships  defined  in  1974  SOLAS,  or,  in  the  case  of
chemical  tankers  and  gas  carriers,  with  the  relevant  standard  codes  for
ships built on or after 25 May 1980;

b)

Passenger  ships  engaged  on  domestic  and/or  international  voyages,  carrying  valid
certificates, which:

i) Were built on or after 1 July 1998, or

ii) Were built before that date, but have been certified by a Member State or
by a recognised organisation acting on  its  behalf  as  complying with  the
requirements set out for ships built on or after 1 July 1998:

-

-

In Directive 98/18/EC, for ships engaged in domestic voyages;

In 1974 SOLAS, for ships engaged in international voyages.

This  Regulation  shall  not  apply  to  ships  that  are  not  permitted  to  access  Member
States' ports in accordance with Article 7b of Directive 95/21/EC.

Article 4

Transfer of register

A  Member  State  shall  not  withhold  from  registration,  for  technical  reasons  arising
from  the  conventions,  a  ship  registered  in  another  Member  State  which  complies
with the requirements and carries valid certificates and equipment approved or type-
approved in accordance with Council Directive 96/98/CE of 20 December 1996 on
marine equipment15.

OJ L 46 of 17.2.1997, p. 25. Directive as last amended by Directive 2002/84/EC (OJ L 324, 29.11.2002,
p.53).

10

2.

1.

15

                                                
2.

3.

In order to fulfil their obligations under regional environmental instruments ratified
before  1  January  1992,  Member  States  may  impose  additional  rules  in  accordance
with the optional annexes to the conventions.

Upon  receiving  the  request  for  transfer,  the  maritime  administration  of  the  loosing
register  shall  provide  the  maritime  administration  of  the  receiving  register  all
relevant information on the ship, in particular, on her condition and equipment. This
information shall contain the history file of the vessel and, if applicable, a list of the
improvements  required  by  the  loosing  register  for  registering  the  ship  or  renewing
her  certificates  and  of  overdue  surveys.  The  maritime  administrations  shall  co-
operate to ensure proper implementation of the provisions of this paragraph.

The  maritime  administration  of  the  receiving  register  may  subject  the  ship  to  an
inspection  to  confirm  that  the  actual  condition  of  the  ship  and  her  equipment
correspond  to  her  certificates  and  to  the  statements  of  compliance  referred  to  in
Article 3.

The inspection shall be performed within a reasonable delay.

If, following the inspection, the  maritime administration of the receiving  register is
unable to confirm correspondence with the certificates and statements of compliance,
it shall notify the Commission in accordance with Article 6(1).

Article 5

Certificates

Upon the transfer, the maritime administration of the receiving register shall issue certificates
under the same conditions as those under the flag of the Member State of the loosing register.

In  so  far  as  no  new  requirements  are  requested  for  existing  ships,  at  the  time  of  renewal,
extension or revision of the certificates, the maritime administration of the receiving register
shall  not  impose  requirements  other  than  those  initially  prescribed  for  the  full-term
certificates.

Article 6

Refusal of transfer and interpretation

1.
The Member State of the receiving register shall immediately notify the Commission
of any refusal to issue new certificates for reasons based on divergences of interpretation of
the  requirements  or  of  the  provisions  which  the  Conventions  leave  to  the  discretion  of  the
Parties.

Unless the Commission is informed of an agreement between the Member States concerned
within one month, it shall initiate proceedings in order to take a decision in accordance with
the procedure laid down in Article 7(2).

2.
Where a Member State considers that a ship cannot be registered under Article 4 for
reasons of serious danger to maritime safety or to the environment other than those referred to
in paragraph (1), registration may be suspended for a period not exceeding three months.

11

The  Member  State  shall  immediately  bring  the  matter  to  the  attention  of  the  Commission,
stating the reasons for the suspension of the registration. The suspension shall be confirmed or
revoked in accordance with the procedure laid down in Article 7(2).

3.
The  Commission  may  consult  the  Committee  referred  to  in  Article  7  on  any  matter
related  to  the  interpretation  and  implementation  of  this  Regulation,  in  particular  in  order  to
ensure that standards of maritime safety and environmental protection are not reduced.

Article 7

Committee

The Commission shall be assisted by the Committee on Safe Seas and the Prevention

1.
of Pollution from Ships (COSS) created by Article 3 of Regulation (EC) N°2099/2002.

Where  reference  is  made  to  this  paragraph,  Articles  5  and  7  of  Council  Decision

2.
1999/468/EC shall apply having regard to the provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at two months.

Article 8

Reporting

Member  States  shall  transmit  to  the  Commission  a  yearly  succinct  report  on  the
implementation of this Regulation. The report shall provide statistical data on the transfer of
ships,  identify  the  specific  measures  taken  to  implement  this  Regulation,  including  those
designed to inform the operators thereof, and list implementation difficulties encountered.

Article 9

Amendments

The  amendments  to  the  conventions  may  be  excluded  from  the  scope  of  this  Regulation,
pursuant to Article 5 of Regulation (EC) N° 2099/2002.

Article 10

Abrogation

Council Regulation (EEC) N°631/91 is hereby repealed.

12

Article 11

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament
The President

For the Council
The President

13

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s):Maritime transport

Activit(y/ies):Improvement of Community rules relating to maritime safety

TITLE OF ACTION:

PROPOSAL FOR A REGULATION ON THE TRANSFER OF CARGO AND PASSENGER SHIPS BETWEEN

REGISTERS WITHIN THE COMMUNITY

THE  PROPOSED  MEASURE  HAS  NO  FINANCIAL  IMPLICATIONS  FOR  THE

COMMUNITY BUDGET

1.

BUDGET LINE(S) + HEADING(S)

NOT APPLICABLE

2.

OVERALL FIGURES

2.1.

TOTAL ALLOCATION FOR ACTION (PART B): € MILLION FOR COMMITMENT

NOT APPLICABLE

2.2.

Period of application:

NOT APPLICABLE

2.3.

Overall multiannual estimate of expenditure:

NOT APPLICABLE

(a)

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1)

(financial

€ million (to three decimal places)

[n+1]

[n+2]

[n+3]

[n+4]

Year
[n]

Total

[n+5
and
subs.
Years
]

Commitments

Payments

14

(b)

Technical and administrative assistance and support expenditure(see point 6.1.2)

Commitments

Payments

Subtotal a+b

Commitments

Payments

(c)

Overall  financial  impact  of  human  resources  and  other  administrative  expenditure
(see points 7.2 and 7.3)

Commitments/
payments

TOTAL a+b+c

Commitments

Payments

2.4.

Compatibility with financial programming and financial perspective

[X]

Proposal is compatible with existing financial programming.

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial

perspective.

Proposal may require application of the provisions of the Interinstitutional Agreement.

2.5.

Financial impact on revenue:16

Proposal  has  no  financial 

[X]
implementation of a measure)

implications  (involves 

technical  aspects  regarding

OR

16

For further information, see separate explanatory note.

15

                                                
Proposal has financial impact – the effect on revenue is as follows:

(NB All details and observations relating to the method of calculating the effect on
revenue should be shown in a separate annex.)

Budget line

Revenue

(€ million to one decimal place)

Prior to
action
[Year
n-1]

[Yea
r n]

Situation following action

[n+1] [n+2] [n+3

[n+4] [n+5]

]

a) Revenue in absolute terms

b) Change in revenue

 (cid:1)

(Please specify each budget line involved, adding the appropriate number of rows
to the table if there is an effect on more than one budget line.)

3.

BUDGET CHARACTERISTICS

NOT APPLICABLE

Type of expenditure

New

Comp/
Non-comp

Diff/
Non-diff

YES/
NO

4.

LEGAL BASIS

Art. 80(2) of the Treaty.

EFTA
contribution

Contributions
form applicant
countries

Heading in
financial
perspective

YES/NO

YES/NO

No

5.

5.1.

DESCRIPTION AND GROUNDS

Need for Community intervention 17

5.1.1. Objectives pursued

Further  facilitate  transfer  of  ships  between  registers  within  the  Community.  Increase
competitiveness of EU shipping industry while respecting international maritime safety
standards.

5.1.2. Measures taken in connection with ex ante evaluation

Not applicable

17

For further information, see separate explanatory note.

16

                                                
5.1.3. Measures taken following ex post evaluation

Not applicable

5.2.

Action envisaged and budget intervention arrangements

Not applicable

5.3.

Methods of implementation

Direct management by the Commission using regular staff (already existing)

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B - (over the entire programming period)

NO FINANCIAL IMPACT - Points 6.1.1. to 6.2: Not applicable.

6.1.1.

Financial intervention

Commitments (in € million to three decimal places)

Breakdown

[Year
n]

[n+1]

[n+2]

[n+3]

[n+4]

Total

[n+5
and
subs.
Years]

Action 1

Action 2

etc.

TOTAL

17

6.1.2.

Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure
(commitment appropriations)

[Year
n]

[n+1]

[n+2]

[n+3]

[n+4]

Total

[n+5
and
subs.
years]

1) 
administrative assistance

Technical 

and

Technical 

a) 
offices

assistance

b)  Other 
administrative assistance:

technical 

and

- intra muros:

- extra muros:

of  which  for  construction
and 
of
maintenance 
computerised  management
systems

Subtotal 1

2) Support expenditure

a) Studies

b) Meetings of experts

c) Information and
publications

Subtotal 2

TOTAL

18

6.2.

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire
programming period)18

(Where  there  is  more  than  one  action,  give  sufficient  detail  of  the  specific  measures  to  be
taken for each one to allow the volume and costs of the outputs to be estimated.)

Breakdown

Commitments (in € million to three decimal places)

Type
of outputs
(projects, files )

Number of
outputs

Average unit
cost

(total for years
1…n)

Total cost

(total for years
1…n)

1

2

3

4=(2X3)

Action 1

- Measure 1

- Measure 2

Action 2

- Measure 1

- Measure 2

- Measure 3

etc.

TOTAL COST

If necessary explain the method of calculation

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

No impact on staff expenditure. Management by existing staff. 7.1 and 7.2 not applicable.

No  specific  impact  on  administrative  expenditure.  The  Committee  set  out  in  the  amended
regulation has never met (since 1991). Possible issues are to be taken up in the context of the
Committee on Safe Seas (COSS) which deals with matters raised under a variety of directives
and regulations relating to maritime safety. 7.3.: not applicable.

18

For further information, see separate explanatory note.

19

                                                
7.1.

Impact on human resources

Staff to be assigned to management of the
action using existing and/or additional
resources

Number of
permanent posts

Number of
temporary posts

Total

Description of tasks deriving from the
action

If necessary, a fuller description of the
tasks may be annexed.

Types of post

Officials 
temporary staff

or

A

B

C

Other human resources

Total

7.2.

Overall financial impact of human resources

Type of human resources

Amount (€)

Method of calculation *

Officials

Temporary staff

Other human resources

(specify budget line)

Total

The amounts are total expenditure for twelve months.

7.3.

Other administrative expenditure deriving from the action

Amount €

Method of calculation

Budget line

(number and heading)

Overall allocation (Title A7)

A0701 – Missions

A07030 – Meetings
A07031 – Compulsory committees 1
A07032 – Non-compulsory committees 1

A07040 – Conferences

A0705 – Studies and consultations

Other expenditure (specify)

Information systems (A-5001/A-4300)

Other expenditure - Part A (specify)

Total

The amounts are total expenditure for twelve months.

1 Specify the type of committee and the group to which it belongs.

20

I.

II.

III.

8.

8.1.

and

8.2.

Annual total (7.2 + 7.3)

Duration of action

Total cost of action (I x II)

€

years

€

FOLLOW-UP AND EVALUATION

Follow-up arrangements

Arrangements and schedule for the planned evaluation

Member States should transmit the Commission "yearly succinct reports" (Art. 8).

9.

ANTI-FRAUD MEASURES

Not applicable.

21

IMPACT ASSESSMENT FORM

THE IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE
TO SMALL AND MEDIUM-SIZED ENTERPRISES( SMEs)

TITLE OF PROPOSAL

Article Proposal for a Regulation of the European Parliament and of the Council on
the transfer of cargo and passenger ships between registers within the Community

DOCUMENT REFERENCE NUMBER

COM(2003) 478 final

THE PROPOSAL

1.

Taking  account  of  the  principle  of  subsidiarity,  why  is  Community  legislation
necessary in this area and what are its main aims?

The main aim of the proposal is to strengthen certain aspects of the regime set out by
Council Regulation (EEC) No 613/91, in the light of the experience gathered with its
implementation.  For  legal  clarity  and  simplicity,  Regulation  (EEC)  No  613/91  is
repealed  and  replaced  by  a  new  text.  A  regulation  is  the  most  appropriate  form  of
Community measure to revise an existing regulation.

THE IMPACT ON BUSINESS

2.

Who will be affected by the proposal?

–  which sectors of business

–  Shipping  companies  operating  cargo  or  domestic  ship  passenger  services  in  the

Member States.

–  which  sizes  of  business  (what  is  the  concentration  of  small  and  medium-sized

firms)

–  A variety of sizes of companies will be affected, from companies owning one ship

only to owners of much larger fleets.

–  are there particular geographical areas of the Community where these businesses

are found

–  In all EU Member States, as all national administrations are affected in their role

as flag States.

22

3.

What will business have to do to comply with the proposal?

No particular measures are required. The Regulation is designed to further facilitate
the transfer of ships within the Community

4.

What economic effects is the proposal likely to have?

Positive effects on competitiveness are  expected through the reduction of  costs  and
administrative procedures involved in a transfer operation.

5.

Does the proposal contain measures to take account of the specific situation of small
and medium-sized firms (reduced or different requirements etc)?

No.

CONSULTATION

6.

List the organisations which have been consulted about the proposal and outline their
main views.

The following organisations were invited and attended the consultation meeting:

-

-

-

European Community Shipowners Association (ECSA)

European Transport Workers' Federation (ETF)

International Association of Classification Societies (IACS).

Stakeholders  expressed  an  opinion  supportive  of  the  Commission's  proposals,  in
particular on the extension of scope to cover passenger ships and on the suppression
of the obligation to fly a Member State's flag for at least 6-month to benefit from the
Regulation's provisions on free transfer of register.

23