ANNEX 1: Letter to Yacht Owners
Dear Sirs,
I am writing to you about recent changes which have taken place relating to Port State Control inspections which might take place to your yacht. You may be aware that the Paris MOU have issued guidance to Port State Control Officers (PSCOs) on how to identify yachts which fall within the European Union Port State Control Directive – and the New Inspection Regime (NIR). We recognize that this is causing some concern amongst yacht owners and managers.
BACKGROUND
The purpose of the NIR is to ensure that all ships engaged in trade (i.e. other than pleasure vessels) operating within Europe will be inspected, to make sure that none slip through the net. The inspection schedule is determined according to the estimated risk. For example; A High Risk ship must be inspected every 6 months, a Standard Risk ship every year and a Low Risk Ship every three years. At this stage the ship is identified as a Priority I (PI) for inspection and must be inspected. The window of opportunity for inspection opens at 5 months for a High Risk Ship, similarly at 10 months for Standard Risk, and 2 years for Low Risk. When the window of opportunity opens it is eligible for inspection and becomes a Priority II (PII), changing to PI when the above mentioned periods have elapsed.
All ships of 300GT and over, including pleasure yachts, must report their arrivals and departures according to the Vessel Traffic Monitoring Directive and this information is entered through SafeSeaNet to THETIS (PSC database). This means that every ship, including yachts, of 300GT and over will be reported and it is then up to the PSCO to determine if the ship is eligible for inspection under the PSC Directive (NIR) or not. It should be noted that Port States always have the right to inspect any ship within their jurisdiction, including pleasure vessels of any size, although these would not fall within the scope of the NIR.
Because many yachts will now potentially fall within the NIR, most of which have never previously been inspected, the Paris MOU have developed guidance for their PSCOs on how to determine if a yacht is eligible or not.
CURRENT GUIDANCE AND POSITION
In summary, the guidance suggests that the flag State should determine the status of a yacht, whether it is a “pleasure vessel” or is “engaged in trade” and therefore falls within the scope of the conventions. A Declaration (for instance a Certificate of Registry) which states clearly that a yacht is a pleasure vessel, should be accepted as one piece of evidence. Unfortunately the guidance goes on to conclude that if a yacht is issued with a certificate issued under the International Load Line Convention or is marked according to the Convention with Load Line marks on the sides, then this indicates the vessel may be “engaged in trade”. This is because the LL Convention does not apply to pleasure yachts not engaged in trade. We recognize that many pleasure yachts have been issued Code and Convention Certificates in accordance with the Code, on a voluntary basis.
With reference to the yacht being marked according to the Convention, we disagree with the PSC guidance for two reasons. Firstly, having a freeboard mark is no different to having guardrails designed according to the Convention, it does not mean the ship is engaged in trade. Secondly, the Large Yacht Code freeboard mark is not according to the provisions of the “Convention”. It is an equivalent mark, but it does not have a deck line, does not have the assigning authority and is not painted in a contrasting colour.
YACHT CATEGORIES
There are three categories of use of yachts:-.
1. Yachts used exclusively as part of a business and are continuously engaged in trade. (i.e. Commercial Yachts - Engaged in Trade)
In theory, if a yacht is engaged in trade (even once), then it should be subject to inspection according to the NIR and the process of issue of pleasure vessel certificates should not be abused to avoid inspection.
As flag State, we are responsible for ensuring yachts have the right documentation. This includes clarification as to whether the yacht is engaged in trade or is a pleasure yacht. Currently we use the same certificates for both; which mean that regardless of what the Certificate of Registration may say, the Code certificate states it is “commercial” and if applicable an International Load Line Convention Certificate will be issued by Class, also confirming the vessel as “commercial”.
For this category of yacht, both Code and Convention Certificates would be issued.
2. Yachts used exclusively as pleasure vessels, for use of the owner, family and friends. (i.e. Pleasure Yachts - Not Engaged in Trade)
The UK and other RedEnsignStates, have encouraged (on a voluntary basis) pleasure yachts to be surveyed and issued certificates according to the Large Yacht Code and Conventions. In our opinion it would be a backward step for these yacht owners to feel that they should abandon the standards and surveys now widely adopted.
MCA has produced a new Code Certificate, specifically designed for “Pleasure Yachts” which voluntarily wish to comply with the Code. In addition, we have requested the Classification Societies not to issue an International Load Line Convention Certificate, but instead issue a non-statutory “Statement of Compliance” with the requirements of the Convention. Class are familiar with this process, which they issue for non-Convention States. We do not need to issue SOLAS non-convention certificates for MCA surveys, as the requirements are covered within the MCA Code survey. Some Convention requirements do apply to pleasure yachts, for example under the MARPOL Convention and will continue to be issued with those certificates.
We recognize that owners of pleasure vessels have good reasons to request surveys and certificates to the Code standards. This could include; seeking assurance that their yacht is built to a recognized standard; be capable of being offered for charter in the future, or to maintain a higher re-sale value. We wish to continue to offer this service, because it enhances safety.
For this category of yacht, Pleasure Yacht Code certificate would be issued and Class could issue non-Convention Statements of Compliance.
However, If there is an intention to change from Pleasure Yacht to Commercial Yacht in the future, surveys will need to be carried out in accordance with the convention requirements. (e.g. Load Line, SAFCON, Safety Equipment and Safety Radio) at the owners request even though the certificates issued to a Pleasure Yacht will not be a statutory or Convention certificate.
Class Status:
MCA recognise that the Class notation could be different for a pleasure yacht and a commercial Yacht. In the former, the standard of construction or survey schedule may be more relaxed than for a commercial yacht. For example for a commercial yacht, annual surveys are required. It is important therefore, to determine with the Class Society concerned if this change will have an impact on being able to use the yacht for commercial purposes in the future. In cases of doubt, where there is an intention to use the yacht commercially again in future, or for re-sale value, it may be better to maintain the stricter standards.
3 Yachts which are sometimes engaged in trade and sometimes for pleasure by the owner, friends or family. (i.e. Mixed Trade
It should be noted that a yacht which is sometimes engaged in trade and sometimes not, could be considered to be engaged in trade (with down time periods between charters being laid up or used for pleasure purposes). Therefore, such yachts may continue to operate with the certificates as a “Commercial Yacht”, but of course will be subject to PSC inspection.
In order to maintain validity of the Convention certificates, surveys are to be carried out in accordance with the Convention requirements, even when operating as a Pleasure Yacht.
However, where an owner wishes to change status, the following procedure should be adopted. For a yacht where all the requirements are complied with (including surveys), a Pleasure Yacht set of certificates may be exchanged for a Commercial Yacht set of certificates, without additional survey. If there are outstanding items for a pleasure yacht (e.g. ISM Code, STCW manning etc), these will need to be complied with before the Commercial certificates can be issued. Similarly, a change of registration from commercial to pleasure, should be followed by issue of certificates as a Pleasure Yacht, as indicated in option 2 above.
A new Certificate of Registry should be issued clearly showing Pleasure Vessel or Commercial Yacht (“engaged in trade”). An entry into the ship’s log should be made to indicate the date when such a change took place.
For this category of yacht, it will be necessary to issue different documents as the status of the yacht changes. Please also note the paragraph in 2 above regarding Class Status, as this will also be applicable.
There is nothing to fear from an inspection. If the yacht has been surveyed and issued with certificates, the PSCO will ask to see the original certificates and carry out a simple initial inspection “walk around” the yacht and may carry out a few simple checks. Only if they have clear grounds will a more detailed inspection be carried out.
SUMMARY OF ACTIONS
In September, MCA submitted a paper to the Paris MOU to propose changes to its guidance. The Paris MOU Advisory Board considered this paper and comments from other Members. A paper will be prepared for consideration at the next Committee meeting in May 2013, but in the meantime PSCOs will be guided by the current guidance to avoid unnecessary inspection of pleasure yachts. It was also agreed that the Paris MOU Secretariat should meet representatives of industry to discuss their concerns. MCA will be arranging this with industry representatives over the coming months.
For Commercial Yachts “engaged in trade”; to continue to issue Certificates in accordance with the Large Yacht Code, including any relevant Convention Certificates. Certificates of Registry should be issued as “Yacht engaged in trade.”
For “Pleasure Yachts” not engaged in trade; to issue a new “Statement of Compliance for a Large Pleasure Yacht” and in place of any Convention Certificate issued by Class a non-Convention Statement of Compliance. The Certificate of Registry will be issued as a “Pleasure Vessel”.
For yachts which wish to change from Pleasure Yacht not engaged in trade to Commercial Yacht; to carry out any overdue surveys or audits and if satisfactory, to issue certificates for a Commercial Yacht “engaged in trade”. To re-issue the Certificate of Registry as Commercial Yacht “engaged in trade”. An entry should be made in the log book to indicate the date of change of use. For a change from Commercial to Pleasure Yacht, the reverse is applied (but no surveys would be required).
Class Certificates: Class need to issue a Statement of Compliance or Convention Certificate as appropriate to the Registration of the Yacht. Check with the Class Society the status of the yacht and how this can be changed in future.
Should you require further clarification, please contact your flag state surveyor or myself.
Yours faithfully/sincerely,
[Name]