THES
o? You might ask. Well so, the “White, Grey and Black (WGB) List” presents flags with a high performance to flags with a poor performance that are considered high or very high risk. It is based on the total number of inspections and detentions over a 3-year rolling period for flags with at least 30 inspections in the period.
Let’s say billionaire Mr Borisov of Bulgaria goes to buy a boat. A patriot at heart, he wants to sail the Mediterranean and Caribbean seas with his home flag state aflutter. Not a good idea Mr Borisov: Bulgaria is on the black list of the Paris MOU so the regulations under which the yacht sails don’t meet international standards and it’ll be subject to Port State Control inspections and even detention every step of the way. There are 12 states black listed on the Paris MOU, 19 on the grey list (including Switzerland and St Vincent & the Grenadines).
Even if buying a yacht is a flight of fancy that has become unbelievably true, when choosing a state flag registry, owners should leave their hearts at home and leave decisions to the head. Says Jamie Crellin of Integrated Capabilities, Isle of Man, “Owners often choose their own flag state eg; Holland which is a landlocked country that doesn’t necessarily have the right infrastructure or legislative structure for superyachts. Or owners choose by colour or by harbour name. You need to look at VAT implications and where you choose to cruise. You can change your flag without too much difficulty but it can prove costly”.
Considerations you need to make are many and varied says Dick Welsh, Director at the Isle of Man Ship Registry. “You can use the
At its 51st meeting last month, the Paris MoU Committee approved the 2017 inspection results and adopted new performance lists for flags and Recognised Organisations (ROs). These came into effect on 1 July 2018. Claire Griffiths asks how this will affect your flag of choice
SMART
analogy of buying a house; you want the state registry to be safe, politically and economically secure. You are registering an asset so stability is fundamental”. Then explains Welsh, you need to look at what the state registry will do for you; how will they regulate you and look after the vessel? Will they be available 24/7? “That is something that is often overlooked; It can become a logistical nightmare if the flag state doesn’t respond to you when you need it. Owners should also check the state has sufficient superyacht services to support the requirements to keep the owner’s vessel operating when, where and how he wants it to”. Crellin adds that your choice of registry also depends on where you are domiciled. He says, “To register with a British registry you have
to have a business registered in the UK or reside in the UK. If you don’t you can apply via an Agency. The Isle of Man will take a view on a new application, yachts can register through an agency and it’s not so onerous as the UK”. Consider first the legislation on taxes and fiscal benefits adds Mag. Virna J. Ayala F, the Consul General of Panama in Marseille. And if everything else adds up in its favour,
“It
doesn’t hurt to have the most beautifully colourful flag on the stern,” laughs Maxime M.V. James, Registrar for (one of) the most beautifully colourful flag states - Antigua and Barbuda.
CHOICE 118 | SUMMER 2018 | ONBOARD
The decision to register as a private or commercial yacht is a fundamental choice says Welsh, “If you go private there are virtually no regulations, you have no fare- paying passengers so it’s a light touch in terms of regulations. For commercial, you are carrying fee paying guests and for that you need the same level of protection as a passenger vessel- then codes apply and different regimes. It’s a major consideration.” Welsh sees a current trend towards registering private vessels: For some owners they don’t want a commercial level
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