IMO INTERNATIONAL MARITIME LAW INSTITUTE Established under the auspices of the International Maritime Organization A specialized agency of the United Nations A LAW ON THE MALAGASY SHIP REGISTRATION, AMENDING LAW NO. 99-028 OF 03 FEBRUARY 2000 RECASTING THE MARITIME CODE A Legislation Drafting Project submitted in partial fulfilment of the requirements for the award of the Degree of Master of Laws (LL.M.) in International Maritime Law at the IMO International Maritime Law Institute Submitted By: Ms. Mialisoa Rakouth (Madagascar) Supervisor: Ms. Ramat Jalloh Academic Year 2015/2016 TABLE OF CONTENTS PART 1 – EXPLANATORY NOTE 1. Introduction .................................................................................................................................. 1 2. International Background of Ship Nationality and Registration ................................................ 3 2.1 The legal framework ................................................................................................................. 3 2.1.1 Freedom of the high seas and ship nationality .....................................................................3 2.1.2 Registration and the genuine link ........................................................................................5 Registration .............................................................................................................................5 The functional definition of the genuine link ............................................................................6 2.1.3 The obligations of flag States ..............................................................................................7 2.2 Types of registries ..................................................................................................................... 7 2.2.1 Open and closed registries ..................................................................................................7 2.2.2 Bareboat charter registration ...............................................................................................9 2.3 The economic background ....................................................................................................... 10 2.3.1 Beneficial ownership ........................................................................................................ 10 2.3.2 The ship owning realities .................................................................................................. 11 2.3.3 Successful registries ......................................................................................................... 13 Panama ................................................................................................................................. 13 Liberia .................................................................................................................................. 14 Malta..................................................................................................................................... 14 3. The compelling reasons to revive the Malagasy maritime transport industry .......................... 16 3.1 Madagascar, a potential major actor of the world maritime transport ........................................ 16 3.2 The mining industry, the key to unlock the potential for Malagasy shipping business ............... 16 3.3 The importance of acquiring a national fleet ............................................................................ 18 4. Study of the Malagasy Registry .................................................................................................. 20 4.1 Overview of the current legal framework ................................................................................. 20 Source of law ........................................................................................................................ 20 Vessel eligibility ................................................................................................................... 20 Ownership ............................................................................................................................. 21 Company formation ............................................................................................................... 21 Bareboat charter registration .................................................................................................. 22 Manning requirements ........................................................................................................... 22 Taxation ................................................................................................................................ 22 Procedure for registration ...................................................................................................... 22 Mortgages and security interests ............................................................................................ 24 Surveys ................................................................................................................................. 25 ii Deregistration procedure ....................................................................................................... 25 Registration fees .................................................................................................................... 26 4.2 Discussion and policy proposals .............................................................................................. 26 4.2.1 Discussion ........................................................................................................................ 26 Transparency and clarity........................................................................................................ 26 Taxation ................................................................................................................................ 27 Bareboat charter registration and mortgages protection .......................................................... 28 Labour issues ........................................................................................................................ 28 Administration ...................................................................................................................... 29 Ratification of international conventions ................................................................................ 30 4.2.2 Proposals for the Law on Ship Registration ....................................................................... 30 5. The process to implement the law on ship registration .............................................................. 31 5.1 The drafting and adoption process ........................................................................................... 31 5.2 The legal instruments to be taken into consideration ................................................................ 31 5.2 Overview of the law proposal .................................................................................................. 32 PART 2 – THE LAW ON THE MALAGASY SHIP REGISTRATION Preamble ......................................................................................................................................... 34 First part: Preliminary ..................................................................................................................... 35 Second part: The registry................................................................................................................. 37 Third part: Measures for the development of the shipping industry.................................................. 68 Fourth part: Administrative and management provisions ................................................................. 71 Fifth part: Miscellaneous and final provisions ................................................................................. 74 Table of Cases ................................................................................................................................. 75 Table of National Legislations ........................................................................................................ 75 Table of International Conventions ............................................................................................... 75 References ....................................................................................................................................... 77 iii PART I EXPLANATORY NOTE iv 1. INTRODUCTION More than 80% of the world trade is made by seaway transportation. Described as a strategic crossroad, the Indian Ocean records around 70% of the world oil traffic and nearly half of the world commercial freight passes through this space.1 It is a primary sea-lane linking East and West, or more specifically connecting Africa, the Middle East, East Asia and Australasia with Europe and the Americas.2 Every analysis of the Indian Ocean region reaches the same conclusion “The near future will undoubtedly see an increase in maritime developments and activities in and along the Indian Ocean waters. Factors such as increasing international trade amongst nations, demographic changes, integration of economies, modernization in ports and shipping, increasing dependence of economic powers on energy supply, politics, and growing strategic interests will shape the contours of the Indian Ocean region and beyond.”3 Therefore, the ignition of a new maritime transport policy is nowadays more than necessary