shipping law Archives - Malta Maritime Law Association

If you have a sea-going vessel/ship, or even a fleet of them, you will need to make a decision about where you want your maritime registration to be held. There are a number of different flags from all over the world offering the opportunity to be registered; each will provide its own specific advantages and rules which must be adhered to.

Opting for Malta means joining the largest and arguably most established shipping community in Europe, and having access to a port which is perfectly placed between Europe and Africa. Malta is no longer to be a flag of convenience. In fact Maltese authorities in particular Transport Malta (ex Malta Maritime Authority) refers to the flag as a flag of confidence. Here’s a closer look at what ship registration in Malta brings and the benefit you can expect.

The legacy of Malta’s maritime history

Long history Lying in the Mediterranean beneath Italy but above the continent of Africa means that Malta occupies the perfect strategic position. Historically, the country has been one of the most important in maritime trade thanks to both its location and the abundance of natural harbours. Over the decades Malta has built an impressive array of maritime services such as towage, ship supplies, specialised repair plus Freeport facilities. This has helped the tiny nation to remain one of the giants on the global shipping stage, the 6th biggest in the world and the 2nd largest across Europe. This history of maritime excellence has earned the Maltese shipping flag real respect and worldwide confidence in their quality and monitoring.

Maritime monitoring Transport Malta holds responsibility for the registration of ships under the Maltese flag and also oversees the ongoing monitoring and administration of all those in the ship registry. Transport Malta has taken huge steps to protect the integrity of the Maltese shipping flag and has launched a number of different initiatives. Included in these was the appointment of inspectors all over the world to carry out regular safety inspections and to ensure ships comply with Maltese regulations. This rigorous approach to safety and monitoring combined with Malta’s status as a member of the EU means that it has been placed on the Paris MOU White List. This provides ships and vessels with advantages such as fewer port inspections.

The benefits
It’s clear that Malta has a very well-structured maritime/shipping industry and that it takes its responsibilities under its shipping flag very seriously. However, what benefits does registering with Malta provide to the owner of either a vessel or a fleet? There are a number of different benefits to being registered with the Maltese flag, some of which are financial.

Maltese registered ships enjoy the following tax benefits:

Income tax exemption: no income tax on revenue earned from shipping activities (international carriage of goods and passengers for reward).
Exempt from stamp duty on the sale of such a vessel exemption from donation and succession duty on the capital
No trading restrictions.
Double taxation agreements in place.
Possibility of registering ships in the name of non-resident entities.
Access to decision-makers within relevant authorities plus technical back-up.
Simplified procedure for the purchase and sale of shares/equity held in a Maltese shipping company.
Simplified process for the registration and deletion of all vessels.

In addition, the Maltese flag doesn’t pose any restrictions on the nationality of any of the crew serving on the vessel, nor the officers or the master. The nationality of any shareholders or directors is also unrestricted. Other vessels which wouldn’t normally be considered as a ship, such as an oil rig or a platform can be registered.

Malta has taken every possible step to ensure that its maritime regulations offer a real advantage to the ships that register under its flag and have in place responsible, efficient and useful legislation and procedures.

Source: Mamo TCV Advocates

On the 18th January 2015, Malta ratified the Nairobi International Convention on the Removal of Wrecks 2007, (hereinafter referred to as ‘the Nairobi Convention’ or ‘the Convention’). The Convention enters into force internationally on the 14th of April 2015.

The Nairobi Convention is the first to establish a set of uniform international rules which ensure prompt and effective removal of wrecks. The Convention imposes an obligation on ship-owners that operate vessels flagged with States that are parties to the Convention or whose vessels enter ports of any of the said countries to insure against their vessels becoming wrecks. Upon entry into force, Maltese ships of 300 gross tonnage or more, will be required to have certification on board to serve as evidence that insurance is in place to cater for wreck removal. Apart from applying the Nairobi Convention to Malta flagged vessels, Malta has declared that it will also apply this Convention to wrecks located within its territory, including the territorial sea regardless of flag.

The Legal Notice (‘the L.N.’) transposing the Nairobi Convention into Maltese law has been drafted and is expected to come into force in the very near future. Once the L.N. is published, the ‘Wreck Removal Certificates’ will start to be issued by Transport Malta (TM) with an effective date, however, that will post date the L.N., namely the 14th April 2015. Wreck Removal Certificates will start to be issued by TM to ship owners of Maltese flagged vessels
who take the necessary steps to fulfill their obligations under the L.N. before the 14th April 2015. Owners fulfill their obligations, inter alia, by submitting proof that insurance against the risks contemplated in the Convention has been obtained (i.e. the relative ‘blue card’ issued in terms of the Convention to the Maltese Flag Administration). TM is inviting owners to start submitting the said blue card even at this very early stage, even though the L.N. has not yet been made law.

It is essential that owners of Maltese flagged vessels have in place an insurance policy which is effective as from the 14th April 2015 and should allow enough time for the said blue card to be submitted to the Malta Flag Administration to enable the relative Wreck Removal Certificate issued by the Flag Administration in terms of the Convention to be released and placed on board the ship by the 14th April 2015.

So far 16 States have ratified the Convention, and these include: Antigua & Barbuda; Bulgaria; Congo; Cook Islands; Denmark; Germany; India; Iran; Liberia; Malaysia; Malta; Marshall Islands; Morocco; Nigeria; Palau; United Kingdom. While several countries, including Norway are expected to ratify the Conventions, notably, large flags such as Panama have not yet ratified the Convention.

Any ship, even if flagged with a non-contracting State, entering ports or the territorial waters, as the case may be, of any contracting State to the Convention that has opted to apply the Convention, within its territorial seas (such as Malta), must necessarily have on board a Wreck Removal Certificate, regardless of the fact that the respective vessel is flagged with a State not a party to the Convention. Ship owners flagged with non-contracting States who require Wreck Removal Certificates because they operate their vessels in such territorial seas or ports, may apply to the Malta Flag Administration for the latter to issue them with the Wreck Removal Certificates after they submit the relative blue card to the satisfaction of the Flag Administration. Malta has indicated its willingness to issue Wreck Removal Certificates to such owners.

Contributed by:
Dr Jotham Scerri Diacono, Partner at GANADO Advocates
& Ms Rachel Genovese

Member of the Comité Maritime International

Malta For Maritime Registration in Shipping Law

Malta & the Nairobi Convention on the Removal of Wrecks (2007)

Contact Us

Join Us

International Events