Saint Kitts and Nevis: St. Kitts & Nevis - An International Ship Registry

Article by Nigel Smith

The right to establish and maintain a Register of Ships is a fundamental right of all nation states. In establishing such a Register the UN Convention on the Law of the Sea (UNCLOS) declares that "… every state shall fix the conditions for the grant of its nationality to ships, for the registration of ships and for the right to fly its flag."

Registration is generally used to mean attributing a national character to a ship and a link from the ship to an ownership and control structure in that nation state, (the Flag State) which is then duly recorded in the Register of Ships. In the words of the 1958 Geneva Convention on the High Seas, "Ships shall have the nationality of the State whose flag they are entitled to fly". Such Registers are generally termed "Traditional or Closed Registers". The registration of ships has its known origins in the laws of Imperial Rome and was widely practised in the City States of medieval Italy. In England an official registration system first appears in the 17^th and 18^th Century Navigation Acts, starting with a statute of Charles II in 1660.

"Open or International Registers", which are termed by critics as "Flags of Convenience" (FOC’s) are usually considered to allow registration of ships under conditions, which for whatever reasons, are considered more convenient and opportune for the persons registering the ship, than those of a Traditional Register. Some critics maintain that Open Registers allow owners to hide behind a corporate veil of secrecy, without an economic link to the flag state or to operate their ships with less regard for safety and environmental protection. Such critics forget that there are both ancient and modern examples of this practice. It is thought that ancient Mediterranean traders were able to deal with warring parties by virtue of maintaining a link with whoever was at that time considered a neutral in the conflict. Certainly from the 17^th Century onwards there is clear evidence of vessel owners, living in one country registering their ships in that of another to obtain protection during conflict, freedom from fishing restrictions and other reasons to gain usually, a commercial advantage. This continues to the modern day with the most recent highly publicised instances being the reflagging of Kuwaiti-owned tankers to the USA and UK during the Iran-Iraq war, so allowing them protection by the navies of the US and UK; and Spanish and French-owned fishing boats registering in the UK, to take advantage of UK fishing quotas within the European Union (or Community as it was then). However, the widespread use of Open Registers started in the 20^th Century and some point to the small cargo ship "Belen Quezada" transferring from Canadian to Panamanian flag in 1919 during prohibition, in order to still carry rum, as the first modern example. Post- War saw an increase in registrations on Open Registries, with a further acceleration in the late 70’s and 80’s which continues today. The success of the concept can be seen by the fact that the most common Open Registers are less than 25 countries out of the 163 members of the International Maritime Organisation, yet they comprise about 60% of the world fleet, with the largest 7 accounting for around half that amount.

In its desire to establish an International Ship Register, following a consultation process and advice, the Government of the Federation of St. Kitts & Nevis enacted a new Merchant Shipping Act in 2002. Based on an IMO Model Shipping Act and drawing on experience of other Open Registries in the Caribbean area, the St. Kitts and Nevis International Ship Registry has been established. The registry will be operated out of London England. London was chosen due to its historical connections to the Federation, its established maritime infrastructure and importantly in today’s age of instant communication its ability to span time zones from the Far East to the Americas during a working day. In this way the St. Kitts & Nevis International Ship Registry can both offer its services to ship owners worldwide, but also maintain daily contact with the Department of Maritime Affairs in Basseterre, the capital of St. Kitts & Nevis.

A brief description of the process of Registration is as follows;

• A ship owner approaches a Ship Registry asking to register his ship.

• The existing or intended name is checked against existing names of ships and if acceptable the owner informed accordingly.

• Application forms are then completed and submitted. These will give details of the ship’s dimensions, tonnage's, type of ship and other relevant information which is to be recorded in the Register.

• An application form for a licence to use the Radio Communication equipment onboard the ship also has to be completed. Reference here is made to the International Telecommunications Union (ITU) requirements for the use of radio communication equipment worldwide.

• Identification documentation for the owner, be it an individual(s) or a corporation is submitted.

• Depending whether the ship has just been bought or is transferring from one flag to another, a Bill of Sale between seller and buyer may be required.

• Other documentation establishing that a surveyor has inspected the condition of the ship and that valid technical and IMO Convention certification has been issued, is also presented.

• In certain instances, the Registrar may require other documents as well.

• It is common practice to require Original or Notarised documents to be submitted.

Due to the nature of shipping it is usual to issue Registry Certificates with a short-term validity, which are replaced with Permanent or Full-term certification within a short period. A permanent Certificate of Registry will have a validity of 4 years.

Costs to the owner are usually assessed on the basis of the ship’s tonnage and recharged on an annual basis. Gross Registered (GRT) and Net Registered (NRT) tonnage's are used for the calculation of registry fees and port charges. The deadweight (dwt), lightship or lightweight (lwt) and displacement (displ) of a ship refer to tonnage's used in the commercial operation of the ship. Additional costs are charged by the registry for items such as radio licences, registering of mortgages, manning certificates, exemption certificates and other services.

In establishing a Ship Registry a Flag State increases its obligations to the international, especially maritime community. The Government of St. Kitts & Nevis is only too aware of such responsibilities. In recent times the Director of Maritime Affairs has been reviewing IMO Conventions, those laws which govern the passage and operation of ships at sea and ports and has ratified (accepted) many. This means that ships flying the Federation’s flag must abide by the terms of those conventions as well as the laws of the St. Kitts & Nevis. Such conventions can place requirements on a Government for the management of its own port and coastal waters, especially with regard to anti-pollution controls, waste management and security. Therefore, accepting such conventions is not just an exercise in "window-dressing" but demonstrates the commitment of the Federation to its international obligations. Participation in the regular conferences about maritime affairs arranged by the IMO and held at its headquarters in London is expected and will be complied with, being as the offices of the Registry are located there.

The establishment of the St. Kitts and Nevis International Ship Registry is an opportunity for the Federation to eventually see its own national flag flying from some of the many passenger ships that call at the cruise terminal at Port Zante. More importantly, as well as earning income, it will promote the awareness and increase the standing of the Federation globally.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.