Registration of a ship plays an imperative function towards safety and security of the maritime transport and significantly contributes towards the protection and preservation of the marine environment.
The general mechanism for establishing a ship’s nationality and for regulating shipping is registration of the ship in a particular State. By linking a ship to a State, the system of ship registration indicates that that State has the right to protect that ship in international law.
Legal framework
A core principle in public international law is the freedom of the high seas, as laid out in article 87 of UNCLOS. To balance this freedom with the need to avoid disorder and misuse, international law has provided a framework for the regulation of shipping. This framework rests upon two core rules:
- each State shall fix the conditions for the grant of its nationality to ships, for the registration of ships in its territory, and for the right to fly its flag (article 91 of UNCLOS); and
- the State must effectively exercise its jurisdiction and control in administrative, technical and social matters over ships flying its flag (article 94 of UNCLOS).
Article 91(1) of UNCLOS acknowledges the right of every State to “fix the conditions for the grant of nationality and for the right to fly its flag.” The same article provides that there “must exist a genuine link between the State and the ship.” The purpose of the “genuine link” requirement in UNCLOS is to secure more effective implementation of the duties of the flag State under article 94 of UNCLOS.
There is currently no binding international framework to regulate the registration process itself. The 1986 UN Convention on Conditions for Registration of Ships establishes international standards for the registration of vessels in a national registry, including references to the genuine link, ownership, management, registration, accountability and the role of the flag State. However, the Convention has not entered into force.
Open registry/closed registry
Each country sets its own laws and regulations on the registration of ships . Some countries only register vessels with ties to the country through ownership or crewing (“closed registries”). Other countries allow foreign-owned or controlled vessels to use their flag through an “open registry.” Others just choose not to allow the use of their flag for international trade at all.
Since open registries are now widely used around the world, IMO has focused on a strategic approach to ensuring that flag States adequately assume jurisdiction and control over shipowners and ships that are flying their flags in accordance with article 94 of UNCLOS.
Registering a ship involves a series of steps to ensure compliance with legal and regulatory requirements. Here’s a general guide to registering a ship:
- Choose the Flag State: Select a flag state (country) under which you wish to register your ship. Consider factors like the reputation of the flag state, tax implications, and regulatory requirements.
- Eligibility Check: Ensure your vessel meets the eligibility criteria for registration in your chosen flag state. This typically includes factors like the vessel’s age, size, and condition.
- Submit Application: Prepare and submit the registration application to the relevant maritime authority in the chosen flag state. The application will require details about the vessel, its ownership, and any relevant documentation.
- Inspection and Survey: Some flag states require a physical inspection of the vessel by a surveyor to ensure it meets safety and regulatory standards.
- Payment of Fees: Pay the registration fees and any other applicable charges. Fees vary depending on the flag state and the size of the vessel.
- Issuance of Registration Certificate: Once the application is approved and all requirements are met, the maritime authority will issue a registration certificate. This certificate serves as proof of the vessel’s registration under the flag state.
- Maintaining Compliance: Ensure ongoing compliance with the flag state’s regulations, including regular inspections, reporting requirements, and adherence to safety standards.
- Optional: Register with Classification Societies: While not mandatory, registering with a classification society can provide additional credibility and assurance of the vessel’s safety and compliance with international standards.
- Update Registration: Keep the registration details up to date, including changes in ownership, vessel modifications, or other relevant information.
- Deregistration: If you no longer wish to register your ship under a particular flag state, you can apply for deregistration following the flag state’s procedures.
It’s important to note that the registration process may vary depending on the flag state and specific requirements. It’s advisable to seek guidance from a maritime lawyer or consultant familiar with the registration process in your chosen flag state.
Also Read, Reasons Why Ships are registered in Panama?