ARTICLE
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Introduction
The outbreak of the brand new coronavirus illness (COVID-19) throughout 2020 has prompted a extreme brunt all through the world, particularly within the transport and maritime business. This widespread pandemic collapsed all provide chains and compelled port closures led by lockdown choices that restricted the transportation of products and passengers everywhere in the world.
Many developed nations have carried out extremely restrictive preventive measures to fight the unfold of the virus; these restrictions prompted a halt on their economies and commerce with different nations, straight impacting transport carriers’ earnings and port logistics worldwide.
Portugal shouldn’t be an exception on this international pandemic financial development. Nevertheless, by way of progress and worldwide efficiency, the Portuguese maritime sector has maintained its regular elevate for the previous 5 years because of the contribution of the Madeira Worldwide Ship Registry (hereinafter known as “MAR”).
In accordance with statistical information supplied by the Regulator of MAR (Sociedade de Desenvolvimento da Madeira S.A.), the whole variety of vessels registered in MAR has grown greater than 7% between 2019 and 2020, growing from a complete of 680 vessels registered in 2019 to a complete of 730 vessels by the top of 2020.
Following this development and regardless of the uncertainty of the pandemic’s evolution, the variety of vessels registered in MAR continued to develop and, within the first semester of 2021, the whole variety of vessels registered elevated from 730 to 786 vessels, akin to a wholesome progress of seven.67%.
Because of MAR’s efficiency and good compliance with the necessities laid down within the worldwide maritime conventions by Portuguese flagged vessels, Portugal continues to progress within the annual evaluation carried out by the Paris MOU committee and has as soon as once more been included within the White listing of low-risk flags. The end result of this outcome will be seen within the newest listing printed by the Paris MOU Committee; in 2020 Portugal ranks twenty fourth, which represents an enchancment from twenty seventh within the earlier, pre-pandemic 12 months of 2019.
The resilience and capability to continue to grow regardless of the worldwide state of affairs within the maritime business is anchored on a set of measures adopted by the Portuguese Authorities to spice up the competitiveness of the Portuguese maritime sector, enabling worldwide transport gamers to look to the Portuguese jurisdiction for a reputable and business-friendly various for his or her companies.
This chapter goals to spotlight a number of the measures adopted, specifically these of larger authorized and/or operational impression on the maritime business over the past two years.
Measures Adopted
The opportunity of utilizing non-public armed guards onboard Portuguese flagged vessels
The Worldwide Maritime Group (hereinafter known as “IMO”) has lengthy launched particular measures to guard the lives and well-being of seafarers, cargo and ships from the risk posed by piracy and armed theft.
This risk stays at this time and in accordance with the IMO information, a complete of 226 incidents of piracy and armed theft had been tried or carried out in 2020.
In October 2019, Portugal launched a regulation (Decree-Legislation No. 159/2019 of 24 October) that allows shipowners of Portuguese flagged ships to rent non-public safety corporations, using armed personnel to be onboard ships, in an effort to defend them when working in areas of excessive piracy danger.
This Legislation gives the choice to rent safety corporations primarily based within the European Union or European Financial Space. Firms offering non-public armed safety providers to Portuguese registered ships are accountable, by way of their Safety Director, for selecting the Safety Group Coordinator and for outlining: (i) the anti-piracy plan; (ii) the journey plan; and (iii) the in-land transportation plan concerning arms and ammunitions.
In April 2020, by Round No. 64, the Portuguese Maritime Administration outlined the areas thought-about excessive piracy danger in accordance with these already recognized by the IMO, such because the Gulf of Guinea, Somalia, the broader Indian Ocean, the broader Atlantic Ocean, West Africa, the Crimson Sea, amongst others.
By implementing this new Legislation and by having the highrisk areas for piracy outlined by the Portuguese Maritime Administration, Portugal strategically positions its maritime business on a par with the premium Flag States that enable the usage of armed guards on board.
Amendments to the regulation relevant to vessels registered in MAR
In 2020, by Legislation No. 56/2020 of 27 August, the Portuguese Authorities accepted crucial amendments to the MAR authorized framework.
Regardless of the lockdown and short-term restrictive measures that conditioned the functioning of public providers generally right into a slowed down tempo of legislative processes, political efforts had been put in place to enact substantial adjustments to the MAR authorized regime, with the intention of strengthening MAR’s positionon a global stage.
Amongst these adjustments are: (i) the creation of a differentiated ship mortgage regime; (ii) the advance of the industrial registration of ships and associated authorized acts; and (iii) the strengthening capability of the Maritime Administration to carry out its duties.
With regard to the ship mortgage regime, the brand new Legislation consolidates the mortgagee’s place. Along with the pliability already granted to the events to pick out the regulation relevant to the mortgage, this new Legislation strengthens the mortgagee’s pursuits by introducing the so-called “mortgagee in possession” idea and subsequently granting blocking powers in conditions of potential sale or encumbrance of the ship by the proprietor.
Mortgagees additionally grew to become entitled to pre-approve the register of vessels on a bareboat foundation in MAR, in addition to to cancel the bareboat charter-in registration in these circumstances the place the mortgagor fails to adjust to its obligations underneath the mortgage and underlying mortgage.
As a serious step ahead into the Info Know-how (“IT”) world, the brand new Legislation permits the industrial registry of ships to be absolutely digital, permitting for the registry purposes to be submitted on-line and proof of registration to be out there by way of digital certificates. In the end, the registration course of might be paperless with the implementation of a devoted software program for ship registration.
Lastly, this legislative modification additionally creates a devoted technical help workforce to deal with effectively the growing variety of ship registrations, by offering help to the Portuguese Maritime Authority and the Technical Fee of MAR on performing their authorized and operational duties and competences.
Sea On-line Desk
The Sea On-line Desk (Balcão Eletrónico do Mar – “BMar”) is the online portal that was created by way of Decree-Legislation No. 43/2018, of 18 June with a view to digitalise the procedures in the direction of the issuance of the certificates, licenses and different paperwork required for the correct efficiency of actions at sea and certification of seafarers and vessels. The pandemic proved this strategic transfer to the net platform to be of nice worth which allowed the sleek working of operations concerning ship registration, no matter all of the social restrictions imposed to the inhabitants and public providers.
The transition of providers and assets to on-line platforms and the advice to make use of digital instruments in the course of the pandemic made BMar the software of excellence for the interplay with the related Maritime Authorities, offering entry to those providers 24 hours a day, seven days every week, for each home and international clients, leading to very sturdy progress within the indicators of use of this platform. The portfolio of digital outputs generated is kind of huge.
BMar gives transparency and ease of entry to public providers (together with providers shared between the assorted official entities), whereas avoiding travelling, duplication of data/ paperwork and specializing in IT as an engine for producing environmental and financial advantages.
At present, all digital certificates issued by way of BMar adjust to the IMO standards.
Consolidation of the transport corporations’ actions and crew advantages throughout the Madeira Worldwide Enterprise Middle
The MAR is a part of the Madeira Worldwide Enterprise Middle (hereinafter known as “MIBC”), a regime absolutely accepted and built-in throughout the European Union.
Though it’s not necessary to include a transport firm in Portugal to register a ship underneath the Portuguese flag, corporations prepared to include and develop their maritime actions throughout the MIBC profit from a set of incentives supplied underneath this particular regime, primarily of a tax nature, so long as they’re compliant with the underlying substance necessities.
A brand new Legislation was printed (Legislation No. 21/2021 of 20 April) on 20 April 2021 amending article 36-A of the Portuguese Tax Advantages Statute (“TBS”), which prolonged the time period of article 33 of the TBS making certain that the advantages therein supplied are in power up till 31 December 2027. Amongst the prolonged advantages is the crew exemption from private earnings tax in Portugal, a good thing about essential relevance inside transport exercise.
As well as, the Legislation prolonged the deadline for the admission of latest corporations underneath the MIBC regime till 31 December 2021 and launched substantial clarifications, particularly what constitutes the variety of jobs created for the needs of eligibility for the scheme. On this context, crew members and employees on board ships registered in MAR had been duly safeguarded and are thought-about jobs for the needs of the regime.
On account of the above legislative adjustments and clarifications, the exercise of the transport corporations throughout the MIBC got here out stronger by way of tax and operational incentives.
Rhine Certification
Throughout 2020, the Portuguese flag was sought by European shipowners with vessels belonging to the Rhine Navigation, who had been unableto register and function their vessels underneath the Portuguese flag.
Portugal didn’t instantly make sure the implementation of the Council Regulation (EEC) No. 2919/85 of 17 October 1985, laying down the circumstances for entry to the preparations underneath the Revised Conference for the Navigation of the Rhine (hereinafter known as “Regulation (EEC) No. 2919/85”).
This grew to become a disadvantage and made it unattainable to register ships belonging to the Rhine Navigation in Portugal (MAR) in the midst of 2020.
Regulation (EEC) No. 2919/85 determines the circumstances for entry to the preparations underneath the Revised Conference for the Navigation of the Rhine regarding vessels belonging to the Rhine Navigation, which establishes the Central Fee for the Navigation of the Rhine, its foremost mission being to advertise the event and make sure the security of navigation on that river.
Portugal shouldn’t be a celebration to the Rhine Conference; nevertheless, with the adoption of the Extra Protocol 2 to Conference, the Central Fee for the Navigation of the Rhine granted all Member States of the European Union entry circumstances to the Rhine an identical to these of its Contracting States.
By advantage of the stated Extra Protocol, solely vessels belonging to the Rhine Navigation are authorised to move merchandise and individuals between two factors located on the navigable inland waterways referred to within the first paragraph of article 3 of the Conference, whereas vessels are recognised by way of a doc issued by the competent authority of the related State.
Inside this context, the Implementing Regulation annexed to Regulation (EEC) No. 2919/85 determines that the Member States of the European Union shall be accorded equal standing with the Contracting States of the Conference.
Though Regulation (EEC) No. 2919/85 is necessary and straight relevant to the Member States, its implementation into the nationwide authorized system was essential.
As of June 2021, the Portuguese Maritime Authority can certify vessels belonging to the Rhine Navigation. By Decree-Legislation No. 40/2021 of 1 June, Portugal appointed the competent authority for issuing the paperwork referred to underneath paragraph 1 of article 2 and paragraph 2 of article 5 of the Implementing Regulation, and established the sanctions relevant in case of a breach of the obligations.
Beneath this new Decree-Legislation, vessels flying the Portuguese flag – and complying with the circumstances laid down within the Regulation (EEC) No. 2919/85 – shall turn into licensed for navigation in one of many largest waterways in Europe, with an excellent optimistic financial impression for Central Europe.
Complementing this enchancment, different legislative initiatives protecting inland waterways are at the moment being ready, notably the implementation of the Directive 2008/68/EC of the European Parliament and of the Council of 24 September 2008 on the inland transport of harmful items (the “Directive”) in what regards inland waterways.
When implementing the Directive again in April 2010, Portugal determined to not apply the provisions on inland waterways in accordance with paragraph 3 of article 1 of the Directive, which allows Member States to not apply Annex III, Part III.1 of the Directive, for one of many following causes: a) they haven’t any inland waterways; b) their inland waterways will not be linked, by inland waterway, to the waterways of different Member States; or c) no harmful items are transported on their inland waterways.
Portugal notified the European Fee of its determination to not apply the provisions on transport by inland waterway on the idea of causes b) and c) above.
Given the proliferation and worldwide recognition of the Portuguese flag overseas, particularly in Europe, the absence of a regulatory regime with regard to inland transport of harmful items represents a handicap that Portugal is prepared to beat.
It’s subsequently anticipated that Portugal will implement the Directive in what regards inland waterways, by enacting a Decree-Legislation incorporating the related textual content of the European Settlement regarding the Worldwide Carriage of Harmful Items by Inland Waterways and respective Laws.
Conclusion
The Portuguese Authorities is dedicated to the success and prosperity of the maritime sector.
Despite the pandemic decelerating the financial system, discouraging funding, blocking decision-making processes and inflicting international uncertainty, Portugal has carried out political, legislative and operational actions with the intention of sustaining the event development of latest years within the transport business.
On 6 Might 2021, the Council of Ministers accepted the Nationwide Technique for the Sea 2021–2030, a public coverage instrument that presents the imaginative and prescient, aspirations, areas of intervention and targets concerning the ocean growth mannequin.
The principle aims of the Portuguese Authorities are to boost the contribution of the ocean to the nation’s financial system and place Portugal as a prevalent maritime nation worldwide.
Portugal will proceed to give attention to simplifying laws and adopting strategic procedures to boost the fame and competitiveness of its ship registries, whereas making certain the technical rigor and correct monitoring of the fleet. MAR is at the moment ranked as one of many main European registries; conserving this development requires full compliance of flag state, port state and coastal state obligations throughout the IMO.
Initially printed by ICLG
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