TTM15030 - Background material: Ships
Certification
National registries
Most nation states operate a national registry of ships, or sometimes more than one registry.听 Once registered with a particular register the ship acquires a nationality and flies the flag or ensign or the particular state (the flag state).听 A UK ship will fly the red ensign and be registered with the UK registry run by the Maritime and Coastguard Agency (MCA) at headquartered at Southampton.听 She will bear on her stern her name and the port of registry, say, Southampton.听 Other ships may fly the red ensign, but one registered, say, in the Isle of Man bearing the triskelion is not registered on a relevant register, see SI2020/332.听 Gibraltar's register, however, is a relevant register.
A registry may be run, not by a government agency as in the UK, but by a private company.听 For example, a corporation based in New York City, USA, runs the Liberian Registry.听 Profits from its operation are shared with the Liberian government, but there is unlikely to be any direct contact between the shipowner and that West African state.听 Article 91 of UNCLOS (United Nations Convention on the Law of the Sea) mandates a 'genuine and visible link' between vessel and flag state, but it has not so far received sufficient support among members for ratification.
Operation of the vessel and flagging
Different registries have different requirements, but there is not necessarily any connection between the nationality of the flag state (registry), the registered owner of the ship, and the actual operator of the vessel.
鈥楽ingle ship companies鈥� are quite common in an industry where protecting a valuable asset behind a corporate shield may be an important consideration.
For instance, a vessel might be owned by a Panamanian company, flagged in Liberia and operated by a UK company (or the Panamanian company may itself have tax residence in the UK).听 Taxation will follow operation, but it may be claimed that a profit on a bareboat charter be allocated to the company owning such a vessel.听 Care is needed before accepting that any significant risk (and associated profit) be allocated to the offshore company.听 This is essentially a factual question, but the Tonnage Tax Technical Adviser may be able to offer further advice.
Classification societies
In order to be registered a ship must be certificated to be of a particular type and size and to be maintained to certain minimum standards.听 Classification societies are licensed by states to undertake this work on their behalf.听 Most states do not insist that ships are 鈥榗lassed鈥�.听 However, without 鈥榗lass鈥� there would be considerable difficulties in operating a ship, as 鈥榗lass鈥� is generally a requirement of most insurance companies and shippers using the vessel.
Classification societies are organisations that survey and classify ships, both during their construction and their operation.听 They are the principal means by which standards of construction and maintenance are enforced, and ship certificates can be issued by flag states.听 The principal societies are:
听| Society | Abbreviation |
|---|---|
| American Bureau of Shipping | ABS |
| Bureau Veritas (France) | BV |
| China Classification Society | CCS |
| Det Norske Veritas (Norway) | DNV |
| Germanischer Lloyd (Germany) | GL |
| Det Norske Veritas Germanischer Lloyd (DNV & GL merged in September 2013) | DNV GL |
| Hellenic Register of Shipping | HRS |
| Indian Register of Shipping | IRS |
| Korean Register of Shipping | KRS |
| Lloyd鈥檚 Register of Shipping (UK) | LR |
| Nippon Kaiji Kyokai (Japan) | Class NK |
| Polski Rejestr Statkow (Poland) | PRS |
| Registro Italiano Navale (Italy) | RINA |
Types of certificate issued by classification societies
As part of the registration process of a ship with a flag state, the classification society may issue both an 鈥業nternational Tonnage Certificate鈥�, detailing both gross and net tonnage, and a 鈥楥ertificate of Survey鈥�.During periodic surveys a 鈥楥ertificate of Class鈥� will be produced to confirm that the ship remains up to standard. This and a surveyor鈥檚 report will be used by both the owner and by an insurance company or P&I club to satisfy themselves that the ship is seaworthy and usable for its intended purpose.
Some flag states allow class to deal with all surveys and issue all types of certificate, including 鈥業nternational Load Line鈥� and 鈥楽OLAS鈥� (Safety of Life at Sea), whilst others restrict the certificates classification societies can issue on their behalf, or do not delegate at all.
To check on the gross or net tonnage of a vessel,听officers may request an 鈥榠nternational tonnage certificate鈥�, see TTM01330.
Officers听may also request sight of an 鈥業nternational Load Line鈥� or 鈥楽OLAS鈥� certificate to check whether the vessel is certificated for navigation at sea, or seagoing, see TTM03510.