REGULATION ON VESSEL FLAG CERTIFICATES

Date of Decree by the Council of Ministers : 13.3.1957, No: 4/8807

Date of Law on which it is based : 29.6.1956, No: 6762

Date of the issue of the relevant Official Gazette : 17.4.1957, No: 9588

Issued in : 3, Vol.: 38, p. 1118

Article 1 - If a vessel acquired the right to hoist Turkish Flag while in a foreign country, a certificate of flag is issued as a substitute for the vessel certification (as per subparagraph 1, Article 828 of the Turkish Commercial Code).

Article 2 - Flag certificate will be issued by the local or nearest Turkish Consulate upon the application of the vessel owner, or any of the vessel owners.

Article 3 - Flag Certificate is requested by submitting a petition. Such petition includes following information:

Of the Vessel

1. Name

2. Type and the primary materials used in its construction,

3. Building site and the year of launching (provided that it is not too difficult to identify),

4. The Flag carried for the last time,

5. The registration office with which it is registered, and if currently not registered with any registration office, then the registration office of the last registration, and the date of cancel of such registration.

6. Official measurement results

7. Docking Port.

8. Facts evidencing the acquisition of ownership,

9. Facts evidencing the hoisting of Turkish Flag,

10. Name, surname and legal address of the applicant, and in case of legal persons, name, trade name and registered office.

It should be assured that the information mentioned in paragraphs 3, 4, 6, 7, 9 and 10 reflect the facts. The tonnage certificate, or original or certified copy of a document issued by a foreign measurement authority should be submitted. Facts specified in subparagraph 9 should be evidenced.

Article 4 - Flag certificate shall not be issued unless it Is understood that the vessel is eligible for marine transport on the basis of an eligibility document issued by authorized Turkish or foreign bodies, or an accredited international classification institution.

Flag certificate may be issued after the requirements and obligations specified in the above mentioned documents are met, and shall be in accordance with the restrictions on periods and places set forth in such documents.

Flag certificates for passenger liners may only be issued provided that such liners have the appropriate facilities and equipment in accordance with the relevant laws and regulations on such vessels.

Article 5 - Flag Certificate is valid only for a period of one year. Nevertheless, in case of prolongation of the travel due to any force majeure events, such expired flag certificates remains valid until the end of the travel. The details of such force majeure events, and the duration thereof shall be evidenced through records in the ship’s journal.

Article 6 - Flag Certificate shall be issued in accordance with the model certificate no 1 attached to this regulation.

Unless necessitated by conditions, only the printed form prepared by the government for this purpose may be used. For both the originals as well as the certified copies thereof, such printed forms shall be completed with Turkish print letters.

The restrictions specified in paragraph two of the Article four shall be indicated on the back of the certificate, and they shall be referenced on the front page.

Article 7 - Two ratified copies of the flag certificate shall be sent by the issuing authority to the Ministry of Transportation. And the Ministry of Transportation retains one of these copies, while referring the other copy to the registration office authorized to register the vessel.

Article 8 - The vessel owner or the captain is obliged to return the flag certificate to the registration office authorized to register the vessel immediately for cancellation in case of occurrence of any of the following conditions:

1. When the Vessel Certificate is issued,

2. If the right to hoist Turkish Flag is lost,

3. If the request for registering the vessel is declined.

The returned flag certificate shall be cancelled by crossing it with a red ink, and cutting from at least four edges towards the center. Such cancellations shall be informed to the Ministry of Transportation. The ministry also cancels the copies it retains in the same manner.

Article 9 - Provided that it is noted on the flag certificate, mortgages may be established on Turkish Vessels that are acquired in a foreign country, but not registered with the Turkish vessel registration. (Turkish Commercial Code, Article 876).

For establishing such a mortgage, the relevant party should submit a written agreement concluded by and between the vessel owner and the creditors whose signatures are certified by a notary public or any other authority authorized in accordance with the local laws.

The mortgage note to be written on the flag certificate should specify the points set forth in Article 893 of the Turkish Commercial Code.

Article 10 - In accordance with the paragraph two of the Articles 824 and 828 of the Turkish Commercial Code, requests for permission to hoist Turkish Flag, and grant of flag certificate should be submitted by:

1. By the vessel operating contractor if the paragraph two of the Article 824 is applicable, or

2. By the business owner or vessel owner if the paragraph two of the Article 828 is applicable, or

In both cases applications should be made to the Ministry of Transportation.

Article 11 - Such application to be submitted in accordance with the above provision shall include following information:

1. If the paragraph two of the Article 824 of the Turkish Commercial code is applicable, then the vessel’s:

a) Name

b) Type and the primary materials used in its construction,

c) Building site and the year of launching (provided that it is not too difficult to identify),

d) Name, surname and legal address of the owner, and in case of legal persons or companies, name, trade name and registered office.

e) Official measurement results

f) The port through which its navigations shall be directed and managed under the Turkish Flag (prospective docking port).

g) The flag carried at the time of application, or the flag carried for the last time before such application,

h) Vessel registration office with which it is currently registered, or registered for the last time,

i) Name, surname and legal address of the operating contractor, and in case of legal persons, name, trade name and registered office,

j) Facts evidencing the rights of operating contractor to use the vessel, and the validity period of such rights,

k) Documents evidencing that the operating contractor meets the eligibility requirements set forth in Article 823 of the Turkish Commercial code.

2. If the paragraph two of the Article 828 of the Turkish Commercial code is applicable, then:

In addition to the information specified in subparagraphs a through e above, the destination port for the vessel.

Article 12 - It should be assured that the information mentioned in subparagraphs c, d, f, g, h and i of the paragraph (1) above reflect the facts.

The tonnage certificate, or original or certified copy of a document issued by a foreign measurement authority should be submitted.

The eligibility of the vessel, and the facts specified in subparagraphs j and k of paragraph 1 above should be evidenced. Evidencing the eligibility for sea transport shall be subject to the paragraphs 1 and 3 of the Article 4.

Besides, if the Article 824 of the Turkish Commercial code is applicable, then the following documents should also be submitted:

1. Document evidencing the consent of vessel owner for the change of flag during the validity period of usage rights held by the operating contractor.

2. A document issued by the relevant authorized organ of the country that the vessel is subject on the date of application, or by the relevant consular evidencing that there is no hindrance to hoisting Turkish Flag to the vessel.

Article 13 - If the applicant is granted a permission to hoist Turkish Flag to the vessel, then a flag certificate in accordance with the model certificate no (2) attached to this Regulations by the Ministry of Transportation, and an identification mark is given to the vessel. The paragraph two of Article 6 is applicable for such certificates.

If the paragraph two of Article 824 of the Turkish Commercial code is applicable, then the vessel shall be registered with the Ministry of Transportation.

Article 14 - The flag certificate to be issued in accordance with the above article shall be valid for the duration of the permission to hoist Turkish Flag If the paragraph two of Article 824 of the Turkish Commercial code is applicable, and until the arrival of the vessel to the destination port If the paragraph two of Article 828 of the Turkish Commercial code is applicable.

If the permission to hoist Turkish Flag is extended, then the case may be noted on the flag certificate, or a new certificate may be issued.

Article 15 - If the paragraph two of Article 824 of the Turkish Commercial code is applicable, then the operating contractor or the captain is obliged to notify immediately the Ministry of Transportation for updating of the records of any changes in facts specified in subparagraphs a, b, d, e, f, I, j, and k of paragraph (1), Article 11 of this Regulations. And updated information in the registration shall be noted on the flag certificate as soon as possible.

In case it is understood, upon notice or otherwise, that the conditions required for granting to hoist Turkish Flag are ceased to exist, or not existed at all, the Ministry of Transportation cancels the permission immediately.

If the vessel sunk and cannot be rescued, or is unrecoverably damaged, then the operating contractor or the captain is obliged to notify the case promptly to the Ministry of Transportation.

Paragraphs 1, 2,and 3 of the Article twelve shall be applicable by comparison for such notifications.

Article 16 - The vessel’s registration shall be deleted from the registry if the permission to hoist Turkish Flag is expired, or cancelled by the Ministry of Transportation on legal grounds, or events specified in paragraph three of the above article are notified.

Article 17 - The Flag certificate shall be returned to the Ministry of Transportation if the right to hoist Turkish Flag is expired, or if the events specified in paragraphs 2 and 3 of article fifteen occurs. The Captain is obliged to return the flag certificate as soon as the vessel arrives at a Turkish Port.

In cases specified in Article 16, the flag certificate is cancelled by the Ministry of Transportation as provided for in paragraph two of the article eight. If the certificate is not returned, or if it is not deemed that there is a good probability that it is damaged, then the cancellation decision related thereto shall be announced in a manner to be deemed appropriate by the Ministry, and the costs arising from or in connection with such announcement shall be borne by the operating contractor.

The cancellation decision shall be notified to the authority specified in paragraph (2) of the Article 12.

Article 18 - The provisions of this Regulations set forth in accordance with Article 838 of the Turkish Commercial Code No 6762, and inspected by the State Council shall enter into force as of its publication in the Official Gazette.

Article 19 - The provisions of this Regulation shall be executed by the Council of Ministers.


Model Form No (1) attached to the Vessel Flag Regulation

REPUBLIC OF TURKEY

FLAG CERTIFICATE

We hereby certify that the vessel whose name and properties specified herein below has the right to hoist Turkish Flag, and all rights, privileges, and qualifications applicable for Turkish vessels in accordance with the paragraph 1, Article 818 of the Turkish Commercial Code No 6762 dated 29 June 1956.

Of the Vessel

1. Name

2. Identification mark:

3. Type:.

4. Building site and the year of launching:

5. Docking Port:

6. I- Official measurement results:

a) Length:

b) Width:

c) Depth:

d) Length of the engine house:

e) Gross tonnage:

h) Net tonnage:

g) Measurement certificate (date and issuing authority):

II. Engine Power:

III Vessel owner.

This certificate is valid for a period of one year, or for the duration of travel prolonged due to force majeure events with the terms and conditions set forth on the backside of this certificate.

...... Place ...... date

Official seal

(Authority issuing the certificate)

(Signature)

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Records and conditions: Mortgages (Turkish Commercial Code, 876/1):

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Text of the (Article 893 of the Turkish Commercial Code:

A) Establishing mortgages:

1. To be recorded with the registration.

Article 893. For the registration of vessel mortgage, the name, and surname of the creditor, the amount of receivable, or the Turkish currency equivalency for non-monetary receivables, the interest rate if such receivables are subject to interest, and the amount of any other payments shall be recorded with the registration. For other conditions related to the content and nature of rights and receivables, references may be made to the registration request.

If the amount receivable is not regular or fixed, then the maximum limit of the amount of such receivables secured through mortgage shall be recorded with the vessel registration with the condition that the actual amount shall be determined on the relevant date. If the receivables are subject to interest, then the maximum interest rate shall be included.