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Malta Maritime Law Association

Member of the Comité Maritime International

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New Guidelines on Private yacht carriage capacity

April 12, 2017 Leave a Comment

At the start of 2017 Transport Malta, the authority responsible for the administration of the Malta flag, introduced new guidelines that allow more than 12 persons on board privately registered yachts.

Since their launch, these guidelines have been welcomed by the industry, not least since they represent the consolidation of a flexible approach towards authorisation for the carriage of additional guests on board and a departure from the previously strict requirement for yachts to be built in accordance with the International Convention for the Safety of Life at Sea or the Passenger Yacht Code and registered with a red ensign flag.

These guidelines apply to yachts both above and below 500 gross tonnes and will be applied on a case-by-case basis at the discretion of the authority. Further, pleasure yachts falling within the ambit of the guidelines will be prohibited from navigating more than 150 miles from a safe haven while carrying more than 12 persons.

Requirements

Yachts falling under the guidelines must:

  • hold a valid class certificate (a requirement applicable for yachts over 500 gross tonnes);
  • comply with the requirements of the Commercial Yacht Code;
  • possess an approved stability booklet, which covers the loading conditions relative to the total number of persons being requested on board;
  • install and carry the appropriate safety equipment, depending on the expected number of persons on board;
  • have a 100% life raft capacity;
  • carry a compliment crew in line with the Commercial Yacht Code;
  • have been issued a safety radio statement of compliance (applicable to yachts over 300 gross tonnes) or a safety radio certificate (for yachts over 500 gross tonnes); and
  • comply with the International Convention for the Prevention of Pollution from Ships requirements, as detailed in the Commercial Yacht Code.

The guidelines also require an intermediate survey to be effected every two-and-a-half-years, starting from the date on which the vessel is allowed to carry more than 12 persons. The aim of this survey is to verify the continued compliance with the minimum requirements.

Comment

The Malta flag has increasingly garnered a solid reputation as being one of the leading European flags and is favoured by owners, financiers and operators of private and commercial yachts. Speaking at the Fifth Opportunities in Superyachts Conference organised in Malta on the February 23 2017, Minister for Transport and Infrastructure Joe Mizzi noted a record increase of over 14% in the registration of superyachts over 24 metres under the Malta flag over the past year. He attributed this success to the high level of service offered by both the public and private sectors and the “various initiatives and strategies in favour of the industry offering a holistic package”.

The new guidelines stem both from a recognition by the Maltese administration that there is a gap in the superyacht market and the administration’s continued effort to remain at the forefront as a leading yachting flag, which is conscious of the need to meet the industry’s frequently changing requirements while maintaining the highest possible technical standards.

Contributed by Alison Vassallo, Fenech & Fenech Advocates

Source: ILO 12 April 2017

Filed Under: International Law News, Latest, Malta, Malta Flag, Superyachts, Uncategorized

Malta – Logical Choice for Superyacht Owners

April 15, 2015 Leave a Comment

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The third annual Opportunities in Superyachts Conference was held at the Westin Dragonara in Malta on March 26 2015. As in previous years, the conference attracted a substantial number of local and foreign lawyers, marina and yard representatives, yacht and insurance brokers and financiers and audit firms.

Over the past eight years Malta has enjoyed success within the superyacht sector, steadily increasing the volume of its registered fleet and the number of yachts which are not necessarily registered in Malta but which have otherwise benefited from the solutions offered by the jurisdiction. As such, it is unsurprising that the presentations and panel discussions largely focused on what Malta offers owners and operators of private and commercial yachts.

Conference overview
During the conference, José Herrera – Parliamentary Secretary for Competitiveness and Economic Growth – referred to an announcement made in February 2015 by Transport Malta (the Maltese regulatory body in charge of shipping matters), which revealed a 13.6% increase in the registration of commercial yachts over 2014. The conference also coincided with the launch of Yachting Malta Ltd – a partnership between the government and the Royal Malta Yacht Club – which has the sole objective of promoting Malta as a leading destination for high-profile yachting events.

While undoubtedly representing the cornerstone of a maritime nation’s portfolio, success is not measured solely by the amount of registered tonnage or size of a jurisdiction’s flag – although Malta is the largest European flag and the sixth largest in the world, with latest published figures indicating that Malta has 292 privately registered yachts over 24 metres and 160 commercially registered yachts over 24 metres as of December 2014.

James Lawson – who chaired the conference – spoke of Malta as the “neatest and safest” option, not only with regard to registration requirements (leaving aside temporary importation scenarios where a non-EU flag would be mandatory), but also with regard to its corporate services, tax planning, general efficiency and consistently high-level service. The third session of the conference focused on tax, value added tax (VAT), corporate ownership and registration, which were exhaustively covered by means of an excellent presentation delivered by Janet Xanthopoulos, head of the yacht division of Monaco-based Monoeci Management.

Panel discussion
A panel discussion after the main presentation identified and discussed key topics, including: the impact of the application of VAT on charters in Malta; the accounting of VAT on imports of commercial yachts in Malta; and the security that Maltese law offers financiers. Other significant topics of discussion were the increases in owners registering their yachts under EU flags – which is seen as one of the factors contributing to Malta’s success – and various instances of owners choosing to switch their yachts from commercial use to private use. The panel’s concluding comments identified Malta as a leading example of the importance of EU member states maintaining tax regimes that are beneficial (as opposed to punitive) to owners in order for the sector to thrive.

For further information on this topic please contact Alison Vassallo at Fenech & Fenech Advocates on t. +356 2124 1232 or email alison.vassallo@fenlex.com. See also the Fenech & Fenech website.

Contributed by Fenech & Fenech Advocates ILO

Filed Under: International Law News, Latest, Malta, Maritime Registration, Superyachts Tagged With: Malta, ship registration, superyachts

Malta Flag now Europe’s top shipping register and endorsed as a Low Risk Flag

January 28, 2012 Leave a Comment

Source: Hellenic shipping worldwide news article, Saturday, 28 January 2012


The Maltese Shipping Register was confirmed as the largest merchant flag in Europe and seventh worldwide by Clarkson Research Services, one of the leading providers of statistical services in the maritime sector. Minister for Infrastructure, Transport and Communications, Dr Austin Gatt announced this during a press conference held at Transport Malta offices on Friday.

As at end of 2011, the Maltese Register of Shipping had achieved an increase of over 6 million gross tonnage representing a growth rate of 16.1% over the previous year. The registered gross tonnage under the Merchant Shipping Act is 45.6 million. These figures include a whole diversity of vessels including yachts and superyachts. Minister Gatt said “we are very proud of the strong performance of the Maltese Shipping register.

The latest published statistics represent record figures for the Malta Flag and a significant achievement for the Malta Flag Administration over the past decade. This increase is mainly attributed to the continued effort of Transport Malta and the Maltese shipping community, including local intermediaries, to attract reputable companies to the Maltese Register. We must continue working to consolidate this position in the years to come.”

Particular positive results were registered in the registration of superyachts. The three consecutive year trend was reconfirmed with an increase of 18.6% in the registration of superyachts over 2011. As of the end of December the superyachts, larger than 24 metres in length, flying the recognizable Maltese cross worldwide was almost 300. Minister Gatt also announced that Malta was recently confirmed by the Paris Memorandum of Understanding on Port State Control (Paris MoU) on the list of “low risk ships” under the New Inspection Regime, after the successful completion of an IMO (International Maritime Organisation) Audit last year.

This new low risk status will translate into real benefits to Maltese registered ships and superyachts particularly when calling at ports within the Paris MOU region. It will denote significantly less targeting for port State control inspections, thus less impact on operations. Minister Gatt continued “this status was achieved thanks to the efforts of all stakeholders and the efforts of the personnel of the Merchant Shipping Directorate within Transport Malta. Such achievement is testimony to their level of commitment since the Administration has managed to concurrently increase the growth rate while meeting the stringent low risk criteria”.

In his concluding remarks, Minister Gatt also made reference to last week’s announcement that the Malta Aviation register had another successful year. Dr Gatt concluded: ““these results encourage us to work harder to ensure Malta continues to benefit from the associated positioning within these international sectors, from the direct revenue and the indirect added value they bring to our economy.’’

Source: Superyacht Times

Filed Under: International News, Malta, Malta Flag, Superyachts

MMLA seminar on Updated Commercial Yacht Code

February 3, 2011 Leave a Comment

 

More than 70 professionals attended the Malta Maritime Law Association’s seminar on the updated Commercial Yacht Code. Malta has just issued a revision of the code which will serve the needs of the yachting industry better while allowing for its developing technological advancements in conformity with international regulations and safety standards.

After an opening address by MMLA president Ann Fenech, Karl Briffa, flag and port state control inspector at Transport Malta’s Merchant Shipping Directorate explained the concept behind the Malta Commercial Code.

Launched in 2006 and amended in 2010, the code aimed to offer a proposition to owners and superyacht operators looking for a serious regulatory framework within which to register their yachts commercially. He explained how the code has been developed on industry established standards bringing together solutions for both yachts below and above 24 metres.

Commercial yachts registered under the Maltese flag has increased especially since 2006, with more than 150 yachts with an average length of 30 metres registered as commercial yachts. The Updated Commercial Yacht Code 2010 will apply to commercial yachts the keels of which are laid or which are registered under the Malta flag from January 2011.

Commercial yachts registered under the Malta Flag whose keels were laid before January 1, 2011, must comply with the requirements of the code by the first survey due on or after March 1 but by not later than December 31. Paul Cardona of Marine Industrial Consultancy Services highlighted the differences between the Maltese Code and other Codes, particularly the MCA Code.

Given his extensive experience, he was able to share instances which threw light onto the manner in which owners, yards, classification societies and various administrations need to act and interact.

 

Filed Under: Events, Malta, Superyachts

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News & Publications

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