In spite of the global economic turbulence of recent times, the last two fiscal years have witnessed the Cayman Islands strengthen and consolidate its position as the global leader in ship registration.
The Cayman Islands Shipping Registry which now has a fleet of nearly 2000 vessels, continues to enjoy a reputation for excellence; its ensign remains the flag of choice for super yachts the world over and in the 2010/2011 fiscal year, for the first time in the history of the Marine Authority of the Cayman Islands its registered fleet surpassed the 4 million gross tones mark.
The popularity of the Cayman Islands as a safe haven for ships
,and indeed offshore business generally, is not a recent phenomenon
yet its continued success is no accident. It is well known that, as
an Overseas Territory of the United Kingdom, the Cayman Islands has
profited from a solid legal environment with a stable parliamentary
democracy since 1831. Equally, it is no secret that there is no
direct taxation in the Cayman Islands.
However, it is important to appreciate that its prominence as the
flag of choice internationally would not have been achieved without
the diligent and ongoing work of MACI in conjunction with the
willingness and ability of local law makers to tailor legislation
and regulation so as to consistently respond to the needs of the
global marketplace whilst simultaneously keeping up to date with
the latest international maritime standards.
For two decades the Cayman Islands has been listed as a Category 1
member of the prestigious Red Ensign Group and as such is able to
"flag" vessels of all types and sizes, from private
yachts to supertankers, bulk carriers and even submersibles.
Significantly, the Cayman Islands is white-listed across the two
major Port State Control Memorandums of Understandings (i.e. Paris
and Tokyo) as well as meeting and surpassing the highest standards
set by Qualship 21 (the US Coast Guard).
Importantly for ship owners internationally, it is no longer a
requirement for a Cayman Islands flagged vessel to be owned by a
Cayman Islands individual or entity. Indeed, by way of example,
registration is available to the following owners:
Citizens of any country included in the Third Schedule to the
Money Laundering Regulations of the Cayman Islands (which at the
last count listed 43 countries including the USA and Canada);
Citizens of member states of the European Union;
Entities incorporated, established or registered in and having a
place of business in the United Kingdom or any of its overseas
territories or Crown dependencies or a member state of the European
Union or EEA.
Of course, as one might expect from one of the world's leading
financial centres, for citizens of those states which do not
qualify for registration directly, the local financial services
industry is well qualified to assist with the necessary corporate
holdings structures. The fact that owners and lenders registering
vessels in Cayman can avail themselves of its first-class legal and
financial advice is a tremendously attractive feature of
registration.
As stated above, the endeavors and achievements of MACI must not
go unnoticed. For example, in order to accommodate lenders and
owners in different time zones and on different continents, MACI
has established representation in no less than 11 locations
globally: George Town, Grand Cayman; Southampton, UK; London, UK;
Ft. Lauderdale, USA;; France; Greece; Italy; The Netherlands;
Singapore; Hong Kong and Japan.
This global service network underpins MACI's ability and
commitment to serve its international clientele.
MACI's success is also due to the assiduousness of the
surveyors of the Cayman Islands Registry who are well respected
worldwide for running a tight ship. Said surveyors maintain a
dynamic survey and audit programme for vessels and will refuse to
register ships that do not comply with international standards.
Maintenance of such values has ensured that the Register enjoys a
well-deserved reputation for accommodating the highest quality
tonnage afloat.
In closing, it is necessary to highlight and underscore some of
the recent achievements of the Registry which evidence the quality
of the service it provides. Said accomplishments include, but are
by no means limited to, the attainment of the ISO 9001 (Quality
Management Standard); compliance with the International Maritime
Organization VIMSAS and Maritime and Coastguard Agency
standards (a four yearly monitoring visit which provides the UK
with an opportunity to verify that the Cayman Islands is exercising
its obligations to the UK Secretary of State in respect of shipping
matters) and the Audit of Crew Compliance (ensuring that the Cayman
Islands is demonstrating compliance with the requirements of the
STCW Convention – Standards for Training Certification and
Watchkeeping [for seafarers]). MACI has also rolled out and
maintained the Passenger Yacht Code (PYC), a code of practice for
passenger yachts carrying more than 12 and up to 36
passengers. The PYC is an equivalent standard for passenger
yacht construction which was not previously available in the
regulatory environment. The development of the PYC standard
was spearheaded by MACI in conjunction with the Red Ensign Group
administrations.
As part of its ongoing impetus to keep abreast of new legislation,
the Cayman Islands is making preparations for the implementation of
the Maritime Labour Convention, 2006 (MLC 2006), which is a major
development flowing from the International Labour Organisation
(ILO) and spans a wide spectrum of standards relating to living and
working conditions on board ships. It is expected to enter
into force by August of next year.
Whilst current provisions in Cayman Islands shipping law already
address many of the requirements of MLC 2006, proactive actions
have been in train for at least 12 months, in liaison with the
shipping industry and the other members of the REG, to ensure that
full compliance with this Convention will be achieved in a timely
manner. As an example, Cayman Islands surveyors have been
trained to undertake MLC compliance audits and will be offering
these to the industry on a voluntary basis from 01 July 2012 and
Letters of Compliance issued after a successful voluntary audit
will be credited against the required MLC Certification when the
Convention enters into force.
In summary, the Cayman Islands continues to support both vessel
owners and lending institutions in expertly navigating the choppy
waters of the global economic climate. Its success in so doing is
directly attributable to the superior quality of the product it
offers to its discerning international clientele. With the
able and experienced hand of the Marine Authority on the tiller,
there can be no doubt that the Cayman Islands will retain its
enviable reputation for many years to come.
Originally published in Cayman Financial Review
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