The Republic of Palau Palau International Ship Registry A New Vision of Quality in Ship Registration Services MC 16-024 Revision No. 00 Issue Date: 24 August 2016 MARINE CIRCULAR 16-024 SUSPENSION AND CANCELLATION UNDER THE PALAU INTERNATIONAL SHIP REGISTRY To: Subject: DEPUTY REGISTRARS, OWNERS, MANAGING COMPANIES, MASTERS AND RECOGNIZED ORGANIZATIONS SUSPENSION AND CANCELLATIONS UNDER THE PALAU FLAG 1. INTRODUCTION 1.1 This Marine Circular s purpose is to inform owners, managing companies, Deputy Registrars, Masters and Recognized Organizations on the reasons for Suspensions and Cancellation as well as the procedures for reinstatement of the Vessel back with the Palau Flag after a Suspension and Cancellation. 1.2 It is important to be mentioned that Suspensions and Cancellations are seen as measures of last resort and it would be advised by this Administration to avoid a Suspension and Cancellation by providing the information needed and cooperating with the requirements to maintain the Registry with Palau. 2. Reasons for Suspensions and Cancellations 2.1 Below are the reasons for Suspensions and Cancellations and in some cases, the steps to take in order to reinstate the vessel into the Palau Flag after a Suspension or Cancellation. 3. Suspension due to overdue annual or renewal survey of Statutory Certification. 3.1 International Conventions have mandatory surveys which can be: annuals, renewals or special and intermediary and such surveys are to be carried out within the window time provided by the Recognized Organization. Major international convention do not allow for extension of the window period and provide specific reasons why an annual, renewal/special or intermediary survey can be extended. 3.2 This Administration as signatory of all the Major Conventions expects all vessels for which international conventions (or national regulations as applicable) to follow and carry out the annuals, renewals/specials and intermediary surveys as needed including Life Saving Appliances and Fire 16-024 Rev. 00 Page 1
Fighting annual inspections, Dry dock survey and any other required inspection under the requirements of the International and National Conventions. 3.3 If a vessel is found not in compliance with the surveys needed to be carried out the vessel will be immediately Suspended from the Registry and a Letter of Suspension is to be issued and sent to the owner, Deputy Registrar, Managing company (when applicable) and Recognized Organization. 3.4 In order to reinstate the vessel into the Palau Registry the vessel must carry out the overdue inspection and sent to this Administration confirmation that such overdue surveys have been carried out together with the copy of the re issued / reinstated statutory certificates and an updated survey status issued by the Recognized Organization. 3.5 Additionally the following should be taken into account when applying for Reinstatement: 3.5.1 LRIT should be working and transmitting its position 3.5.2 BCC / WRC / CLC as applicable should be valid on board the vessel 3.6 If vessel is not reinstated within 15 days from the Suspension Notice, the vessel will be Cancelled and removed from the Registry. Cancellation Letter will be sent to the Port State Control, International Ship Data Base (Sea-web, Equasis, Lloyds Register), Owner, Managing Company and Recognized Organization. 4. Suspensions due to overdue of Annual Safety Inspections 4.1 Vessels registered with the Palau Flag are expected to carry out Annual Safety Inspection once a year.. Usually Annual Safety Inspections are to be carried out within 6 months prior to the anniversary date. 4.2 Annual Safety Inspections are requested by the Palau International Ship Registry Technical Department and carried out by an appointed Flag Surveyor. If a vessel fails to carry out Annual Safety Inspection the vessel will be Suspended and a Suspension Letter will be issued and sent to the owner, managing company, Master and Recognized Organization. 4.3 In order to reinstate the vessel the vessel must carry out the Annual Safety Inspection within 15 days of the Suspension Notice issued. 4.4 Additionally the following should be taken into account when applying for Reinstatement: 4.4.1 LRIT should be working and transmitting its position 4.4.2 BCC / WRC / CLC as applicable should be valid on board the vessel 4.4.3 Valid Statutory Certificates 4.5 If vessel is not reinstated within 15 days from the Suspension Notice, the vessel will be Cancelled and removed from the Registry. Cancellation Letter will be sent to the Port State Control, International Ship Data Base (Sea-web, Equasis, Lloyds Register), Owner, Managing Company and Recognized Organization. 5. Suspension due to overdue Annual / Renewal Taxes Payment 16-024 Rev. 00 Page 2
5.1 All vessels except for yachts (pleasure or commercial) and special registrations are required to pay annual taxes. Vessels that are one month overdue for the payment of Annual Taxes are to be suspended from the Palau Registry and a Suspension Letter will be issued and sent to the owner, managing company, Master and Recognized Organization. 5.2 In order to reinstate the vessel the vessel must pay the Annual Taxes including the penalties for late payment. 5.3 Additionally the following should be taken into account when applying for Reinstatement: 5.3.1 LRIT should be working and transmitting its position 5.3.2 BCC / WRC / CLC as applicable should be valid on board the vessel 5.3.3 Valid Statutory Certificates 5.4 If vessel is not reinstated within 90 days from the Suspension Notice, the vessel will be Cancelled and removed from the Registry. Cancellation Letter will be sent to the Port State Control, International Ship Data Base (Sea-web, Equasis, Lloyds Register), Owner, Managing Company and Recognized Organization. 6. Suspension Of vessels due to having Fraudulent Statutory and Crew Certificates 6.1 Vessels found with fraudulent certificates including the below certificates will be immediately suspended from the Registry. 6.1.1 Statutory Certificates 6.1.2 Fraudulent Certificate of Competence 6.1.3 Fraudulent Certificate of Completion of Safety Training 6.1.4 Fraudulent Certificate of Registry including Ship Station License and Minimum Safety Manning 6.1.5 Miscellaneous Certificates including: Wreck Removal Certificate, Bunker Convention Certificate, Civil Liability Insurance, LRIT, Continuous Synopsys Records, Non Encumbrances. 6.1.6 Certificate of Incorporation or Identification information including Passports, National I.D., Seaman s Book 6.2 Suspension notice will be issued and sent to the owner, manager, Master, Recognized Organization noting the Fraudulent Certificate Received and any penalty as applicable by law. The vessel will have 7 working days to provide an official statement from the owner including the replacement or actions to be taken to replace the fraudulent certificates in order to be reinstated. 6.3 Upon receipt of the reissued certificates or receipt of the application for the issuance of the certificates the Suspension will be lifted. An official letter confirming the Suspension is Lifted will be issued. 6.4 If no information is received within 15 working days the vessel will be cancelled from the Registry and an official cancellation letter is to be issued and sent to the owner, manager, Master, Recognized Organization and PSC. 7. Suspension of vessels due to Multiple Detention 16-024 Rev. 00 Page 3
7.1 Vessels registered with the Palau Flag that have more than 3 detentions within 12 months will be immediately Suspended from the Registry. 7.2 Suspension Notice will be issued and sent to the owner, managers, Master and Recognized 7.3 The owner will be provided with 15 days in order to carry out the change of Flag and a Cancellation letter or a Deletion Certificate will be issued to the vessel confirming that the vessel is being removed from the Registry. 7.4 Vessels that have 2 detentions within 12 or 24 months are requested to carry out Continuous Flag Inspection Scheme, if the vessel do not carry out the inspection within 5 days from the last detention the vessel will be suspended from the Registry. 7.5 Suspension Notice will be issued and sent to the owner, managers, Master and Recognized 7.6 In order to reinstate the vessel shall have the Continuous Flag Inspection Scheme carried out. The vessel has 15 days to carry out the Inspection otherwise the vessel will be Cancelled and removed from the Registry. 7.7 An official cancellation letter is to be issued and sent to the owner, manager, Master, Recognized Organization and PSC. 8. Suspension of vessels due to Illegal Actions committed 8.1 Vessels that are registered with the Palau Flag that has a legal action against it registered owner including a junction or restraining order shall be suspended with immediate effect. Suspension Notice will be issued and sent to the owner, managers, Master and Recognized Organization of this decision. 8.2 Owner will have 7 working days to be able to present a resolution to the legal actions taken against him or the vessel, after 7 working days the vessel below will be Cancelled with immediate effect and a Cancellation Notice will be issued and sent to the owner, managers, Master and Recognized 8.3 Also vessels that are involved in any of the below will be Cancelled with immediate effect and a Cancellation Notice will be issued and sent to the owner, managers, Master and Recognized 8.3.1 Trafficking or smuggling drugs 8.3.2 Human Trafficking 8.3.3 Illicit wildlife trade 8.3.4 Trafficking or smuggling arms 8.3.5 Not paying crew salaries 8.3.6 Employment of crew younger than 18 years old 8.3.7 Placing Armed personnel without proper authorization from the Government of Palau 8.3.8 Illicit fish or marine products 16-024 Rev. 00 Page 4
8.3.9 Illegal movement at port. 8.4 There is no reinstatement of vessels that have been Cancelled on any of the items described in Section 8.3 9. Suspension of vessels due to a Marine Casualty 9.1 Vessels that are involved in a Marine Casualty resulting in Environmental Pollution, Damage to the vessel or other vessel involved and injury, serious injury or death of a crew member or passenger need to provide all the necessary information in order to conduct an in-depth Marine Investigation as required by the Republic of Palau Maritime Regulation. 9.2 Failure to provide information and submit the vessel to a Flag Inspection together with a an Marine Casualty Investigation will result in the immediate suspension of the vessel and a fine of up to $50,000.00. 9.3 Suspension Notice will be issued and sent to the owner, managers, Master and Recognized 9.4 Owner will have 7 working days to be able to provide the full information to allow a full Marine Investigation in order to have the vessel reinstated. After 7 working days the vessel below will be Cancelled with immediate effect and a Cancellation Notice will be issued and sent to the owner, managers, Master and Recognized 10. Suspension due to vessels not providing Deletion Certificate from the Previous Flag. 10.1 Vessels registered with the Palau Flag shall present the Deletion Certificate from the previous flag in order to obtain Permanent Registration. Such Deletion Certificate should be presented within the first 6 months of provisional registration. 10.2 Vessels that do not submit the Deletion Certificate from the previous flag within 6 months from Initial Registration will be suspended and the Registration will be cancelled. 10.3 Suspension Notice will be issued and sent to the owner, managers, Master and Recognized 10.4 In order to reinstate the vessel, Deletion Certificate shall be presented. No extensions of provisional registration can be granted after the 6 months of provisional registration 11. Suspension of vessels having a Maritime Lien or Mortgage not recorded with Palau Flag 11.1 Vessels registered with Palau which do not disclose that they have a Maritime Lien or Mortgage at the time of registrations, will be suspended upon disclosure of the outstanding Maritime Lien or Mortgage. 11.2 Suspension Notice will be issued and sent to the owner, managers, Master and Recognized 16-024 Rev. 00 Page 5
11.3 In order for vessels to be reinstated into the Palau Flag, evidence of the closure of the Maritime Lien and/or Mortgage Certificate and a Certificate of Non Encumbrance from the previous flag should be presented to this Administration and the registration of such mortgage should be registered with the Palau Flag. 11.4 If no evidence of closure of the Mortgage or Maritime Lien is received within 30 days of the suspension issued, the vessel will be cancelled and removed from the Registry. A Cancellation Notice will be issued and sent to the owner, managers, Master and Recognized Organization of this decision. 12. Suspension of Vessels that is not complying with the International Regulations Ratified by Palau Flag 12.1 The Republic of Palau as a member of the IMO has ratified important International Conventions that must be complied with, including: Bunker Convention Certificate, Nairobi International Certificate on the Removal of Wrecks, Maritime Labour Convention, Passanger and Luggage (Athens Convention), etc. 12.2 Vesesls registered with the Palau flag are expected to comply with the International Conventions ratified by Palau Flag. Vessels that are found not to be in compliance with the International Conventions will be informed immediately. The vessel should demonstrate evidence of compliance within 7 days after receiving notification from the Palau Flag Administration. 12.3 Vessels that fail to be in compliance within 7 days will be Suspended with immediate effect. A Suspension Notice will be issued and sent to the owner, managers, Master and Recognized 12.4 In order for vessels to be reinstated into the Palau Flag, evidence of the compliance with the International Regulation is required within 15 days from the Suspension Notice issued. 12.5 After 15 days if the vessel has not demonstrated compliance with the International Regulations the vessel will be Cancelled and removed from the Registry with immediate effect. 12.6 A Cancellation Notice will be issued and sent to the owner, managers, Master and Recognized 13. Suspension of Vessels due to vessel s IMO number or Owner s are found within the OFAC / EU Sanction List. 13.1 Any vessel registered with the Palau Flag that has been found to be sanctioned by the EU/OFAC including the below will be immediately Cancelled and removed from the Registry. 13.1.1 Vessel (Vessel by IMO number ID) 13.1.2 Owner (individual or company) 13.1.3 Beneficiary owner or group 13.1.4 Managing Company 13.1.5 Previous Owner 13.1.6 Previous Managing Company 13.2 Vessels that are Cancelled due to been found in the OFAC / EU Sanction List cannot be reinstated. 16-024 Rev. 00 Page 6
14. Further Information 14.1 For further information on the information presented in this Marine Circular please contact Palau International Ship Registry. 16-024 Rev. 00 Page 7