Certification Requirements Flashcards

1
Q

SHIPS’ DOCUMENTATION

Compliance with the requirements of the various international, regional and national laws and regulations which PSC authorities assess when vessels are inspected is evidenced in part by what?

A
  • certificates and documents which must be carried on each vessel.
  • different types of ship require a different mix of documentation depending on cargoes they carry.
  • overall burden is on shipowners to have all regulatory documentation up to date is very significant.
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2
Q

(1) Club Certificate of Entry

A

— not strictly a ‘statutory certificate’ since whether or not a ship has to have a CoE on board varies from jurisdiction to jurisdiction.

— however, since 1 Jan 2012 - accepted as evidence of the compulsory cover as required by the EU Directive on Insurance of Ship Owners for Maritime Claims as well as by other coastal States for port entry purpose

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3
Q

(2) CIVIL LIABILITY CONVENTION (CLC) CERTIFICATES

What does the CLC of 1969 an 1992 set out?

A
  • provisions governing the liability of shipowners for oil spills from their vessels
  • these conventions apply widely throughout the world although the versions in force vary from one country to another.
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4
Q

What vessels does the Civil Liability Convention apply to?

A
  • ALL ships carrying persistent oil in bulk as cargo
  • all such ships carrying 2000 tons or + of persistent oil as cargo AND flying the flags of states party to the convention must carry a certificate confirming their ability to pay claims in accordance with the provisions of the convention if there is an oil spill for which they are responsible.
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5
Q

The certificate evidencing that the ship has the ability to pay claims in accordance with the provision of the convention if there is an oil spill for which they are responsible is provided by who?

A

The IG Clubs in the form of a BLUE CARD addressed to the vessel’s flag state.

Blue Cards are often issued by Clubs in an electronic form although some flag states do still insist on hard copies.

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6
Q

The flag state receives the BLUE CARD, then what happens?

A

The flag state issues the vessel with a CLC certificate.

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7
Q

The CLC certificate is kept where?

A

on board the vessel as the necessary evidence.

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8
Q

The 1992 Convention imposes greater liabilities on shipowners than the 1969 convention.

A

States party to the 1969 convention will accept CLC certificates confirming cover for 1992 convention liabilities.

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9
Q

If a Club decided to cancel a Member’s cover,what must the Club do?

A

Give notice to the Member’s flag state which has issued the CLC certificate.

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10
Q

How much notice must be given to the flag state?

A
  • The Club must give 3 months’ notice from the date of termination of the Club’s cover to the issuing flat state.

This means the Club has a potential exposure under its Blue Card issued to the flag state for 3months unless another certificate is issued on the basis of other arrangements made by the ex-member.

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11
Q

If a claim arises during the notice period, what are the consequences to the Club?

A

the cancelling Club has to pay claims under the Blue Card, its only recourse is to try to recover the amount paid from the ex-member who may not be in a position to respond.

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12
Q

(3) OTHER CONVENTIONS -

What other conventions require owners to provide evidence of financial security?

A

The Athens Convention - passenger liabilities
The Bunker Convention
The Wreck Removal Convention

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13
Q

(4) US CERTIFICATES OF FINANCIAL RESPONSIBILITY (US COFRs)

The US government has not ratified which conventions?

A
  • the CLC
  • the Fund Convention
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14
Q

As the US has not ratified either the CLC or the Fund Convention, what has it enacted instead?

A

In 1990, it enacted the OIL POLLUTION ACT (OPA 1990)
Which addresses the same issues as CLC - ships’ liability for oil pollution

With higher limits of liability than CLC

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15
Q

The OIL POLLUTION ACT (OPA 1990) requires what?

A

Requirement similar to that contained in CLC that any vessel trading to US ports must show evidence of ability to pay for any pollution liability that it might incur.

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16
Q

How is the certification achieved?

A

By means of COFRs.

These certificates are issued to those vessel operators who can demonstrate that they can pay for damage done by pollution and clean-up costs to this liability limits set under OPA 90.

17
Q

Which vessels must comply with the COFR regulations to trade to the USA?

A

With a few exceptions, any vessel over 300 GT
And any vessel lightening or trans-shipping cargo within the US Exclusive Economic Zone (that is, up to 200 miles off the US coast).

18
Q

What are the penalties for failure to comply with the COFR regulations to trade to the USA?

A
  • severe, ranging from daily fines
  • seizure of the vessel
  • banning of a vessel from US ports.
19
Q

OBTAINING A COFR

  • to whom is the application made? And what is required with the application?
A

The US Coast Guard (USCG) supported by evidence that the applicant will be able to pay for its liabilities or has insurance that will respond to the required level.

20
Q

What options are available on the USCG application form as security for the issue of COFRs?

A

(1) insurance
(2) surety bonds
(3) financial guaranty
(4) self-insurance
(5) other services

21
Q

Why do the IG Clubs not provide the guarantees that the US authorities require for issuance of the COFRs?

A
  • the Group’s policy is to support legislative consistency throughout the world by encouraging adoption of IMO conventions rather than unilateral legislation by individual states.
22
Q

Name some specialist COFR guarantee providers that the US authorities will accept in order to issue the COFRs.

A
  • Shipowners Insurance and Guaranty Company Ltd (SIGCo)
  • Shoreline
  • WQIS
23
Q

What does the COFR providers require from the vessel’s Club?

A

Confirmation that cover is available subject to the terms and conditions of the Member’s entry.

However, the IG Clubs’ cover is not as extensive as the terms of the guarantees provided by the COFR providers.