CELEX: 51990PC0219
Language: en
Date: 1990-06-01
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) ON THE TRANSFER OF SHIPS FROM ONE REGISTER TO ANOTHER WITHIN THE COMMUNITY

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)
 ---pagebreak---                               -T-
                            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.
 ---pagebreak---                                     - 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 H O 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.
 ---pagebreak---                                          - 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 ^
^ ^ ^ ^ t f ^ ° ^ , f a 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 additionalrequirementsother 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.
 ---pagebreak---                                     - 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 H O or other international
   conventions;
-  the application of Community rules pursuant to existing or subsequent
   legislation;
-  the role of the B D in drafting and interpreting international
   conventions on safety and the prevention of marine, pollution.
 ---pagebreak---                                      - 5 -
 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.
 ---pagebreak---                                      -e-
 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.
 ---pagebreak---                                - 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*.
 ---pagebreak---                               - 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;
 ---pagebreak---                          - 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)~? .
 ---pagebreak---                             - 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.
 ---pagebreak---                           - 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.
 ---pagebreak---                          - 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.
 ---pagebreak---                          - 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
 ---pagebreak---  ---pagebreak---                                      - 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 V s 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.
 ---pagebreak---  ---pagebreak---  ---pagebreak---                                          AS '
                                                                                   ISSN 0254-1475
                                                                   COM(90) 219 final
                                                       DOCUMENTS
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