Vessel Registration

THE REPUBLIC OF

THE MARSHALL ISLANDS

VESSEL REGISTRATION

AND

MORTGAGE RECORDING PROCEDURES

OFFICE OF THE MARITIME ADMINISTRATOR

8/05 MI-100

NOTICE

This booklet is intended to provide vessel owners, operators, charterers, lending institutions and their representatives with a useful source of information needed to register vessels in the Marshall Islands and record ship mortgages and related instruments under its laws.

While these procedures have their basis in the Republic of the Marshall Islands Maritime Act 1990, as amended, this publication is only intended as a guide and should not be construed as legal advice, nor be used as the basis of a legal opinion.

This complimentary printing of the Vessel Registration and Mortgage Recording Procedures will not be automatically supplemented, and therefore, may be out of date.

The updated version of this publication may be found on our website www.register-iri.com
(link: http://www.register-iri.com/content/maritimese/cpf-mi-300.cfm) in the Combined Publications Folder (CPF), MI-300, the CD of which is required to be carried on board every Marshall Islands vessel.

A copy of the CPF, MI-300, with automatic updating service, may be ordered from:

Publications

Office of the Maritime Administrator

c/o Marshall Islands Maritime and Corporate Administrators, Inc.

11495 Commerce Park Drive

Reston, Virginia 20191-1507 USA

Telephone: +1-703-620-4880

Telefax: +1-703-476-8522

E-mail:

VESSEL REGISTRATION

AND

MORTGAGE RECORDATION

under the provisions of

The Republic of the Marshall Islands Maritime Act 1990, as amended,

and

The Associations Law of the Republic of the Marshall Islands 1990, as amended

While the following chapters focus on questions often asked by members of the maritime community, our personnel are available to deal with other issues as well. Our staff is available to consult with you to ensure that your documents qualify for recordation under Marshall Islands law, and to assist with respect to other features of the Republic of the Marshall Islands Maritime Act 1990, as amended (hereinafter referred to as the “Maritime Act” or the “Act”). There is no charge for this service. Guidance on the content and interpretation of applicable international conventions, rules and regulations may also be obtained in consultation with our technical staff.

The registration of a merchant vessel, while a complex process, need not be a painful one. To take advantage of the available opportunities to save time and cost, please review all relevant aspects of the entire process, before undertaking to fulfill the necessary requirements step by step.

Rev. 8/05 MI-100

VESSEL REGISTRATION AND MORTGAGE RECORDATION

(MI-100)

issue and revision history (IRH)

Rev
(T #) / Date
mm/yy / Description / Entered
By / Entered
mm/dd/yy /
2005 Series Rev. 1 / 08/05 / Changed all references for registration from New York to any Regional Office, including New York [pages 1, 3, 10, 14, 16, 23 & 26]; revised Chapter VII, Section 2, items G & L [pages 51 & 53-54] to better reflect the new registration structure; revised items 10.2, 16.11 (new) & 18.0 in Annex 5 [pages 66 & 69-70] to reflect the above references; updated London office particulars & added Tokyo office to Annex 16 [page 85]; added references to CAS in Ch. 1, section 2, item B.1 [page 2], Ch. 3, section 2, item B.6 [page 12] & section 5, item B.3(c) [page 18]; updated forms in Annexes 1, 2, 6, 12, 19 & 20 [pages 57-60, 72-73, 81, 93 & 94]; revised TOC to reflect the repagination resulting from the above changes. / M. McConnell / 08/11/05
2005 Series / 03/05 / Changed location references of Vessel Documentation from New York, New York to Reston, Virginia [pages 1, 9, 24, 44, 45 & 86]; revised Chapter III, Section 5, item B3(c) [page 19]; revised yacht fees in Chapter VII, Section 1, item N [page 50], Section 2, item O [page 56] and in Annex 5 [pages 65-72]; updated MI-104 form in Annex 9 [pages 77-78]; added Shanghai to the Regional Offices listing in Annex 16 [page 86]; updated form MI-101PY in Annex 19 [page 94]; updated form MI-203 in Annex 20 [page 95] / M. McConnell / 03/01/05
2004 Series Rev. 3 / 09/04 / Deleted references to Inmarsat Commissioning fee in Chapter VII, Section 1, item N [page 50], Section 2, item O [page 56] and in Annex 5 item 14.0 [page 68] / M. McConnell / 09/17/04
2004 Series Rev. 2 / 09/04 / Revised Annexes 12 & 13 to reflect the addition of RO information to forms MI-297A & MI-297B [pages 82-83]; revised Annex 22 to reflect the addition of RSO information to form MI-296 [page 97] / M. McConnell / 09/02/04
2004 Series Rev. 1 / 06/04 / Revised Annexes 5 [pages 65-72] & 17 [pages 87-91] to reflect the acceptance of credit cards for any type of payments; revised Annex 18 (form MI-127) [page 92] to reflect the issuance of the tonnage tax receipt by e-mail; revised Annex 19 (form MI-101PY) [page 94] to reflect the addition of verbiage regarding the importance of e-mail addresses / M. McConnell / 06/18/04
2004 Series / 12/03 / Revised Ch. II; added verbiage on ISPS Code (Ch. III, Sections 2 & 6, item b) & CSR (Ch. III, Sect. 2, item b, Sect. 6 items b & c, Sections 7 & 8, item a & Ch. IV, Sect. 2, items b & h); added “Bikini” to choice of home port for yachts (Ch. III, Sect. 5, item 2(b) & Ch. VII, Sect. 2, item I); revised Ch. VII, Sect. 2, item D; updated Annex 16 and all other address references to reflect new address for New York office; updated forms in Annexes 1, 2, 5, 6, 11A, 17, 18 & 19; added 8.3, 9.2, new 12.4 & new 16.18 to Annex 5; added new Annexes 20-22 / M. McConnell / 12/30/03
2003 Series Rev. 1 / 02/03 / Revised Chapter 1, Section 2 (items B & F [new]) [pages 2-3], Chapter 3, Section 2 (items A2, B1a, B4a & b, B6 [new] & C) [pages 11-14], Section 3 (item C) [page 15], Section 4 (item D3) [page 16], Section 5 (items B1 & 2, 3f [new] & 4e) [pages 17-19], Section 6 (item C4a & b) [page 20] & Annex 5 (items 8.1, 10.2 [new], 16.5 & 17.4 [new]) [pages 64-68] to reflect new registration policy / M. McConnell / 02/20/03
2003 Series / 12/02 / Revised Annex 5 (pages 63-69) to reflect optional Schedule B fees for registration; revised Annex 16 (page 83) to reflect change in Piraeus office numbers; revised Chapter III, Section 4: deleted D4 & E3 and revised the wording in D2 & E2 (pages 16-17) / M. McConnell / 12/16/02
2002 Series Rev. 2 / 08/02 / Revised Annex 17 (pages 83-87) to reflect the change in the Federal ABA & SWIFT Numbers for SunTrust Bank when sending wire transfers (entries on pages 83, 85 & 86) / M. McConnell / 08/28/02
2002 Series Rev. 1 / 07/02 / Revised Annex 5 (pages 63-68) to reflect increase in fee for issuance of Certificate of Ownership and Encumbrance for vessels engaged in commerce (entry on page 66 under item 10. Miscellaneous). / M. McConnell / 07/01/02
2002 Series / 01/02 / Chapter 3: new Section 4 “Vessels Sold at Admiralty Auction”, other sections renumbered; revised Annexes 5, 11B, 12, 13 & 16; revised TOC to reflect above changes. / M. McConnell / 01/01/02
2001 Series (T7) / 07/01 / Revised Chapter I, Section 1; revised Chapter III, Sections 1B(2), 2A(1) & 4B(4e); revised Chapter VI, Sections 1 & 3D; replaced “sample form” in Annex 7 with MI-245; added form MSD-336MI(MODU) to Annex 11 thereby creating Annexes 11A & 11B; updated form MSD-336MI in Annex 11A; revised Annex 16; revised TOC to reflect addition to Annexes; IRH page added to document. / M. McConnell / 06/29/01

Rev. 8/05 MI-100

CHAPTER I
THE MARSHALL ISLANDS REGISTRY: AN OVERVIEW 1

SECTION 1: Marshall Islands Maritime and Corporate Administrators, Inc. 1

SECTION 2: Vessels Eligible for Registration in the Marshall Islands 1

A. Vessel Classification 1

B. Vessel Age 1

C. Vessel Name 2

D. Vessel Ownership 2

E. Fishing Vessels 3

F. Pre-registration Inspection 3

SECTION 3: Vessel Registration and Mortgage Recordation 3

A. Closings 3

B. Registration Forms 3

C. Facsimiles 3

D. Authentications 3

E. Memorandum of Agreement 4

F. Closing Agenda 4

CHAPTER II
VESSEL OWNERSHIP 5

SECTION 1: Marshall Islands Corporations 5

SECTION 2: Creating a Corporation 6

A. Incorporation Instructions 6

B. Fees 7

SECTION 3: Registration of Foreign Maritime Entities 7

A. Method of Registration 7

B. Fees 7

SECTION 4: Partnerships and Limited Partnerships 8

A. Creation 8

B. Fees 8

SECTION 5: Limited Liability Companies 8

A. Creation 8

B. Fees 8

SECTION 6. Payments 8

CHAPTER III
VESSEL REGISTRATION 9

SECTION 1: Newbuilding Under Construction 9

A. Application for Intended Registration of Newbuilding 9

B. Shipbuilder’s Letter 9

C. Fee 10

D. Delivered Vessel Not Registered in the Marshall Islands Flag 10

SECTION 2: Provisional Registration 10

A. Application for Registration 10

B. Required Documents to be submitted with Application for Registration 11

C. Registration Fees, Marine Investigation and International Participation Fees, Safety Inspection Fees and Tonnage Tax 14

D. Issuance of Certificate of Registry 14

SECTION 3: Registration in LaidUp Status 14

A. Application for Registration in LaidUp Status 14

B. Required Documents to be submitted with Application for Registration in Laid-Up Status 15

C. Registration Fees, Marine Investigation and International Participation, Safety Inspection Fees and Tonnage Taxes 15

D. Issuance of Certificate of Registry 15

SECTION 4: Registration of Vessels sold at Admiralty Auction 15

A Application for Registration of Vessels in Admiralty Auction 15

B. Required Documents to be submitted with Application for Registration of Vessels in Admiralty Auction 16

C. Issuance of Provisional Certificate of Registry 16

D. Application for Re-registration in Admiralty Auction 16

E. Transfer of Vessel from Marshall Islands Registry 17

SECTION 5: The Permanent Certificate of Registry 17

A. Application for Permanent Certificate of Registry 17

B. Required Documents to be submitted for a Permanent Certificate of Registry 17

SECTION 6: Re-registration of a Marshall Islands Vessel 20

A. Certificate of Permission for Sale 20

B. Application for Re-registration of Vessel 20

C. Required Documents to be submitted with Application for Re-registration 20

D. Re-registration Fees and Tonnage Taxes 22

E. Issuance of Provisional Certificate of Registry for Re-registration 22

SECTION 7: Change in Name of Vessel 22

A. Required Documentation for a Change in Name of Vessel 22

B. Fee for Change in Vessel Name 22

C. Issuance of Provisional Certificate of Registry for a Change in Name of Vessel 23

SECTION 8: Change in Name of Owner 23

A. Required Documentation for Change in Name of Owner 23

B. Fee for Change in Name of Owner 23

CHAPTER IV
BAREBOAT CHARTER REGISTRATION 24

SECTION 1: Bareboat Charter Registration into the Marshall Islands Flag 24

A. Application for Bareboat Charter Registration 24

B. Required Documents to be submitted with Application 25

C. Registration Fees and Tonnage Tax 26

D. Issuance of Provisional Certificate of Bareboat Registry 26

E. Renewals or Extensions of Bareboat Charter Registrations 27

F. Mortgage on Vessel Under Marshall Islands Bareboat Charter Registration 27

SECTION 2: Bareboat Registry in a Foreign State 28

A. Certificate of Permission for Bareboat Charter Registration in a Foreign State 28

B. Application for Permission to Bareboat Out of the Marshall Islands 28

C. Required Documents to Accompany Letter of Application 28

D. Filing of Charterparty 29

E. Other Conditions of Foreign Bareboat Charter 30

F. Fees and Annual Tonnage Tax 30

G. Issuance of Restricted Provisional Certificate of Registry 30

H. Termination of Bareboat Charter Registration in a Foreign State 31

CHAPTER V
RECORDATION OF MORTGAGES AND OTHER INSTRUMENTS 32

SECTION 1: Marshall Islands Preferred Ship Mortgage 33

A. Rights Secured under the Maritime Act 33

B. Characteristics 33

SECTION 2: Contents, Execution and Recordation of Recordable Instruments 34

A. Contents of Recordable Instruments 34

B. Execution: The Signature and Acknowledgment of Recordable Instruments and Related Documents 37

C. Recordation of Documents 38

SECTION 3: Satisfaction, Release or Discharge of Mortgage 40

A. Satisfaction, Release or Discharge of Mortgages by an AttorneyinFact 40

B. Satisfaction, Release or Discharge of Mortgage by Official of the Mortgagee 41

SECTION 4: First Preferred Marshall Islands Ship Mortgage Granted in Continuation of Prior Foreign Mortgage 41

A. Notification 41

B. Required Documentation to be submitted with Application for Registration 41

C. Status of Mortgage 42

D. Acknowledgment 42

CHAPTER VI
TRANSFER OF VESSEL FROM THE MARSHALL ISLANDS REGISTRY 43

SECTION 1: Application for Transfer 43

SECTION 2: Certificate of Permission to Transfer 43

A. Validity and Fees 43

B. Issuance 43

SECTION 3: Certificate of Cancellation of Registry 43

A. Certificate of Permission to Transfer 43

B. Satisfaction of Mortgages 44

C. Fees 44

D. Surrender of Original Vessel Documents 44

CHAPTER VII
YACHT REGISTRATION 45

SECTION 1: Commercial Yachts 45

A. Application of Requirements for Registration 45

B. Ownership 45

C. Suitability for Intended Service 45

D. Tonnage Measurement 45

E. Tonnage Taxes 46

F. Home Port 46

G. Insurance 46

H. Registration Documentation 46

I. Statutory Compliance 46

J. Issuance of Certificates of Registry 47

K. Annual Safety Inspections and Surveys 48

L. Recordable Instruments 49

M. Re-registration 49

N. Fees 49

SECTION 2: Private Yachts 49

A. Application of Requirements for Registration 49

B. Minimum Size Limitation 50

C. Ownership 50

D. Declaration of Private Use 50

E. Suitability for Intended Use 50

F. Tonnage Measurement 51

G. Tonnage Taxes 51

H. Insurance 51

I. Home Port 51

J. Registration Documentation 51

Vessel Registration

TABLE OF CONTENTS