Cyprus has the third largest fleet within the EU holding 17% of the total EU fleet. (1200 ships of total grt 23 millions) and ninth worldwide with 1,913 vessels of 23 million grt.  

The laws governing the registration of ships under the Cyprus flag and shipping in general are the Merchant Shipping (Registration of Ships, Sales and Mortgages) 1963 - 2004, the Merchant Shipping Laws (Fees and Taxes) 1992 – 2004 and the Merchant shipping Laws (Masters and Seamen) 1963 – 2002.

The Ministry of Communications and Works (Department of Merchant Shipping) imposed certain restrictions regarding the registration of ships under the Cyprus flag.  Mainly due to the result of the Acquis screening with the European commission and the full membership of Cyprus with the EU.  The new policy, which entered into force on 1.1.2000, is as follows: (Circular of the Ministry dated 11.11.1999)

Vessels of any type and tonnage (except cargo vessels less than 1000 grt, passenger vessels, coastal passenger vessels and fishing vessels) not exceeding 15 years of age may be registered in the Cyprus Register of Ships.

Vessels over 15 years of age and cargo vessels less than 1000 grt, passenger vessels, coastal passenger vessels and fishing vessels, may be registered in the Cyprus Register of Ships under the following conditions, which must be fulfilled concurrently with the submission of the application for registration and must be complied with at all times while the vessel remains registered, irrespective of any subsequent transfer of ownership.

Notwithstanding the above, the owner/bareboat chartered of a vessel registered under the Cyprus flag in accordance with the present policy, automatically undertakes that whenever the Department of Merchant Shipping deems necessary to have the vessel inspected by its own Surveyors as a result of identified deficiencies or an alleged serious violation of international conventions, he is required to submit the vessel for inspection, at his expense, in order for the Department to determine whether the vessel meets the applicable statutory requirements:

An amendment to the legislation regulating ship registration was enacted and implemented following the accession of Cyprus to the EU in May 2004.  Under the amendment, any EU citizen or citizen of the European Economic Area (EEA), and any corporation established in the EU or in the EEA as well as any EU and foreign corporation controlled by EU citizens, or by citizens of the EEA, are eligible to register ships under the Cyprus flag.

For the purpose of this policy:

Cargo vessels include all merchant vessels of gross tonnage of 1000 and over which have been constructed or adapted for the purpose of carrying cargo in any form.

Ocean going tugboats are those with a gross tonnage over 500, which are engaged in either towing operations of ships in the open sea, or in salvage operations in international waters.

Mobile Offshore Drilling Units (MODU) are those vessels capable of engaging in drilling operations for the exploration for or exploitation of resources beneath the sea-bed such as liquid or gaseous hydrocarbons sulphur or salt.

Mobile Offshore Drilling Units should comply and should be surveyed and certificated in accordance with the Code for the Construction and Equipment of Mobile Offshore Drilling Units (IMO Assembly Resolutions A. 414(XI) and A. 649 (16) as amended).

1. Vessels over 15 but not exceeding 20 years of age

A vessel in this category may be registered provided it undergoes a special entry inspection, which is completed with satisfactory result. 

2. Vessels over 20 but not exceeding 23 years of age

A vessel in this category may be registered provided:

1. it undergoes a special entry inspection which is completed with satisfactory results, and
2. it is operated by a Cyprus or EU shipmanagement company based in Cyprus and is certificated for compliance with the ISM Code.


3. Vessels over 23 years of age are not accepted for registration

CARGO VESSELS WITH A GROSS TONNAGE LESS THAN 1000 and not exceeding 20 years of age may be registered without any additional conditions. 

CARGO VESSELS WITH A GROSS TONNAGE LESS THAN 1000 and over 20 years of age but not exceeding 23 years of age, may be registered only if it undergoes a special entry inspection with satisfactory results.

CARGO VESSELS WITH A GROSS TONNAGE LESS THAN 1000 and over 23 years of age cannot be registered.

PASSENGER VESSELS

For the purpose of this policy, passenger vessels are those carrying more than 12 passengers in international voyages and include also accommodation barges with or without self-propulsion and any other structure used to accommodate persons at sea.

1. Passenger vessels not exceeding 30 years of age

A vessel in this category may be registered provided it undergoes a special entry inspection which is completed with satisfactory results and is subject to subsequent annual special inspections, and in case it is engaged in a service which includes at least two calls per month to a Cypriot port, for a period of at least six months, at least 2 cadets of its crew are Cypriots and are engaged for sea going training for a period of up to 6 months. 

2. Passenger vessels over 30 years of age but no exceeding 35 years of age

A vessel in this category may be registered provided:

1. It undergoes a special entry inspection, which is completed with satisfactory results and is subject to subsequent annual special inspections.
2. It is operated by a Cyprus or EU shipmanagement company, based in Cyprus, which must be certificated for compliance with ISM Code. 
3. In case it is engaged in a service which includes at least two calls per month to a Cypriot port for a period of at least six months, at least 2 cadets of its crew are Cypriots, and are engaged for sea training for a period of up to 6 months.


3. Passenger vessels over 35 years of age can not be registered

FISHING AND FISH FACTORY VESSELS

For the purpose of this policy:

Fishing vessels are those vessels, which are used commercially for catching fish or other living resources of the sea.

Fishing factory vessels are those vessels exclusively used for processing fish or other living resources of the sea.

FISHING VESSELS

No fishing vessel, irrespective of age or size, may be registered provisionally, permanently or parallel-in, in the Cyprus Register of Ships, unless it secures beforehand the written consent of the Director of the Department of Fisheries and Marine Research of the Ministry of Agriculture, Natural Resources and the Environment.

1.        Fishing vessels less than 24 meters in length

A vessel in this category over 15 years of age must undergo an entry inspection, which must be completed with satisfactory results.

2.        Fishing vessels of 24 meters in length and over

A vessel in this category over 15 years of age must undergo an entry inspection, which must be completed with satisfactory results.

3.        Fishing vessels over 20 years of age

Vessels in this category are not accepted for registration in the Cyprus Register of Ships.

There are additional requirements for the registration of fishing vessels covering, safety, fishing activities and hygiene.  Interested parties should contact the Department of Merchant Shipping for further information.

AUXILIARY VESSELS, PLEASURE CRAFT, RESEARCH SHIPS AND MOBILE OFFSHORE DRILLING UNITS

Vessels not exceeding 25 years of age

A vessel in this category may be registered without any additional conditions.

Vessels over 25 years of age

A vessel in this category may be registered provided:

• It undergoes an entry inspection which is completed with satisfactory results, and
• Where this is required by legislation, it is operated by a Cyprus or other EU shipmanagement company having its place of business in Cyprus, which is staffed with a sufficient in number and qualifications personnel and is certificated for compliance with an ISM Code.

Interested parties should contact the Department of Merchant Shipping for further information and additional requirements.

COASTAL PASSENGER VESSELS AND SMALL PASSENGER VESSELS

A vessel in this category up to 15 years for engine propelled vessels and, irrespective of age for sailing vessels (with or without an auxiliary propulsion engine), may be registered provided:

• It undergoes an entry inspection which is completed with satisfactory results and is subject to subsequent annual inspections;
• Where this is required by legislation, it is operated by a Cyprus or other EU shipmanagment company having its place of business in Cyprus, which is staffed with a sufficient in number and qualifications personnel and is certificated for compliance with the ISM Code.

The age of vessel is calculated by deducting the year when its keel was laid from the year when the application for registration of the vessel was filed with the Register of Cyprus Ships.  For the purpose of the said Policy, the year of major conversion or reconstruction of a vessel will be taken into account for the calculation of its age provided that at the date of the conversion or reconstruction, the vessel complies with all the provisions of the international conventions as a new vessel.

SUPPLEMENTARY PROVISIONS

Dynamically Supported Craft
For the purpose of application of this policy, a dynamically supported craft carrying more than 12 passengers will be considered as a passenger vessel.

For the purpose of application of this policy, a dynamically supported craft carrying more than 12 passengers will be considered as a passenger vessel. 

Any vessel constructed prior to the 1 January 1996 which qualifies, irrespective of her type, to be considered as a dynamically supported craft, should comply with the requirements of the Code of Safety for Dynamically Supported Craft (IMO Assembly Resolution A. 373 (XI)) and if it meets the definition of the high speed craft set out in Regulation X/1.2 of SOLAS 74 as amended, should comply with the provisions of Regulation IX/2.1.1 or IX/2.1.2 of SOLAS 74 as amended.

Offshore Supply Vessels

Notwithstanding the provisions of the Cypriot Merchant Shipping Legislation, any vessel which qualifies as an offshore supply vessel should comply with the applicable provisions of the Guidelines for the Design and Construction of Offshore Supply Vessels (IMO Assembly Resolution A. 469 (XII), as amended), the Guidelines for the Transportation and Handling of Limited Amounts of Hazardous and Noxious Substances in Bulk by Offshore Support vessels (IMO Assembly Resolution A. 673 (16)) and the Code of Safe Practice for the Carriage of Cargoes and Persons by Offshore Supply Vessels (OSV Code) (IMO Assembly Resolution A.863 (20)).  An offshore supply vessel, which carries more than 12 persons, other than her crew, will not be considered, for the purpose of this policy as a passenger vessel. 

Specific Requirements

Language of Supporting Documentation

Cypriot legislation provides that all documents which refer to Cypriot ships (i.e. including documents for their registration) are admissible provided that they are drawn up in a language comprehensive to the competent officers under the law for their acceptance.  Such provision makes the registration of vessels faster and saves on translation expenses.  In practice, most of the documents are admissible in the English language.

Ownership

The application for registration must be accompanied by documents attesting ownership and compliance with the various conditions, which need to be fulfilled at the time of the provisional registration, the directly permanent registration or the parallel-in registration, as the case may be.   

Entry / occasional inspection

The entry / occasional inspection is carried out by the surveyors of the Department of Merchant Shipping at the expense of the shipowner/bareboat charterer.

The entry inspection of a vessel acquired by a person qualified to own a Cyprus vessel should be carried out at the latest within 3 months from the date of provisional or parallel-in registration, or within 1 month from the date of permanent registration, if effected directly.

The annual inspection of passenger vessels should be carried out within three months before or after the anniversary date of the registration of the vessel, unless alternative arrangements are agreed with the Department of Merchant Shipping, to take place during dry-docking or before re-activation, after winter laid-up period, or during planned maintenance.

Management and Operation of a Vessel

The management and operation of a vessel is evidenced by the Joint Declaration on the Operation of a Ship (form ISM.01Revision 2).

A vessel is considered as managed and operated by a ship management company if that company holds, or is to be issued by or on behalf of the Government of the Republic of Cyprus with a valid, for the type of the vessel, Document of Compliance (DoC) or Interim DoC and the vessel is to be issued with a Safety Management Certificate (SMC) or Interim SMC by or on behalf of the Government of the Republic of Cyprus, indicating that it is operated by the said company.   Alternatively, the management of a vessel shall be proved by an audit of the management company carried out to the satisfaction of the Department of Merchant Shipping.  Such audit shall be carried out to the extent possible in accordance with the requirements of the ISM Code.

Request for Assessment and Certification in accordance with the provisions of SOLAS 74 and the ISM Code

The entry into force of Chapter IX of SOLAS 74, as from 1 July 2002, made the International Safety Management Code (ISM Code) mandatory for all vessels, irrespective of type, of 500 gross tonnage and upwards.

The management companies must hold a valid Document of Compliance (DoC) and each vessel should be provided with a valid Safety Management Certificate (SMC).

Cyprus has already enacted the necessary legislation and the Department of Merchant Shipping has issued a Guidance Note, which contains, among other things, the:

1. Notification procedure to be followed by the owner of each Cyprus ship in order to identify to the Department the company;
2. Additional requirements on matters to be addressed by the Safety Management System (SMS);
3. Authorized or organizations which the owner or the company may engage for the purpose of verification and certification of the SMS together with a number of restrictions and limitations imposed on the extent and scope of the authority delegated to them;
4. Mandatory rules and regulations, which as a minimum, must be addressed by the SMS.

Incomplete applications or applications which are accompanied by inadequate evidence will not be considered.  It is the obligation of the applicant to provide all needed documents and evidence in the form required by the Registrar.  The form and nature of the supporting documentation remains at the discretion of the Registrar.

SPECIAL INSPECTION

1. The special inspection is carried out by the surveyors of the Department of Merchant Shipping at the expense of the shipowner. 
2. The inspection of a ship acquired by a person qualified to own a Cyprus ship should be carried out before the provisional or directly permanent registration of the vessel.  If this is not practically feasible, it should be conducted within 3 months from the date of provisional of parallel-in registration, or within 1 month from the date of permanent registration, if effected directly.
   2.1 The annual inspection of passenger ships should be carried out within three months before or after the anniversary date of the registration of the vessel, unless alternative arrangements are agreed with the Department of Merchant Shipping, to take place during dry-docking or before re-activation, after winter laid up period, or during planned maintenance.
3. Owners are obliged to provide expeditiously any information, which is deemed necessary by the Department of Merchant Shipping for the purposes of the inspection.  Unjustified failure of the owner to provide the required information and to make the vessel available for inspection in time, is considered a breach of the relevant conditions of registration and the vessel is liable to deletion from the Cyprus Register of Ships.
4. Notification for the vessel’s availability for inspection should be given to the Department of Merchant Shipping and relevant arrangements should be made in accordance with the Department of Merchant Shipping Circular No. 20/98 dated 21 December 1998.  If, despite this condition, the ship is found laden, either fully or partly, it will be subject to a second inspection at the expense of the shipowner.
5. In the case of bulk carriers and tankers (oil tankers, chemical tankers and gas carriers) and reefer carriers (when the removal of thermal insulation from the cargo compartments is required), unless the special inspection is conducted in dry-docking or, in the case of tankers, when all spaces are safer for entry and internal examination, without the need to use any breathing equipment, the special inspection will be carried out to the extent which is practically possible and a second visit will be required to complete the inspection.  The second visit should be held at the earliest of the following alternative occasions:
1. not later than the date of completion of the first intermediate enhanced survey, after the date of registration; or
2. not later than the date of completion of the first enhanced survey carried out during a periodical survey, after the date of registration; or
3. not later than the date of completion of the first dry-docking, after the date of registration; or
4. in the case of tankers, on the first occasion that all spaces are safe for entry and internal examination, after the date of registration; or
5. on the first occasion the vessel enters a repair yard, after the date of registration.  The decision for the registration of the vessel will be based on the results of the first visit and the registration of the vessel will be made conditional to the completion of the inspection by a specific date to be determined by the Department of Merchant Shipping, in the light of the aforesaid.  In case the second visit reveals any deficiencies these should be rectified before the vessel resumes its commercial operation, unless the Department of Merchant Shipping determines otherwise.
   It is the owners’ obligation to notify the Department of Merchant Shipping about the date and the place where the vessel will be made available for the second visit.  In this respect, the provisions of paragraph 3 and 4 above continue to apply.
6. In the case of a vessel of any type and size for which an application is also submitted for its parallel registration in a foreign registry and this parallel registration is effected within one month from the time of provisional registration, the special inspection is postponed until the expiry or termination of the parallel registration.  In such case, the special inspection must take place upon or within one month from the date the Cyprus nationality of the ship is restored, at the latest.

CONDITIONS AFTER REGISTRATION

1. The condition under which a vessel is registered continues to be in force irrespective of any subsequent amendments of the government policy.  The owner or bareboat charterer, as the case may be, however, may apply for substitution of the conditions imposed initially with those stipulated in any later policy, for vessels in the age group of the vessel at the time of its registration.
2. Whenever in this policy there is a reference to conventions, protocols, codes, IMO Resolutions and Recommendations and European Union Directives, which must be complied with by certain categories of vessels, as a condition for their registration, compliance with the relevant instruments must be verified by a recognized Classification Society on behalf of the Government of the Republic of Cyprus, both at the time of provisional registration and at regular intervals thereafter, as determined, on a case by case basis, by the Department of Merchant Shipping

Information Note on the Special
Inspection
of Ships over 15 years of age for
the purposes
of registration under the Cyprus
flag

1. SCOPE OF APPLICATION

This Note applies to the special inspection of ships having an age over 15 years, the Owners of which wish to have them registered under the Cyprus flag in accordance with the Government of the Republic of Cyprus Policy on the Age Limited of Vessels which may be registered in the Registrar of Cyprus Ships (hereinafter referred to as “the Policy”).

The inspection may commence at any time within six months prior the registration of the vessel and in case it is satisfactorily completed may be accepted provided that by the date of its registration, the vessel has not sustained a casualty or other damage which adversely affects its seaworthiness or been detained following a port State control inspection.

The special inspection will consist of:

1. an examination of the vessel’s records kept by its Classification Society.
2. an examination of all the statutory certificates and records that the vessel is required to be provided with.
3. a general examination of the vessel in accordance with the provisions of section 6 of this Note.
4. an audit of the shipboard port of the safety management system implemented and maintained on board, for ships which fall within the scope of application of Regulation IX/2 of SOLAS 74 as amended.
   
This Note does not apply to pleasure craft not engaged in trade.
 


2. DEFINITIONS

Notwithstanding the provisions of the Merchant Shipping Acts of the Republic of Cyprus, for the purposes of this Note, unless expressly provided otherwise:

“Department” means the Department of Merchant Shipping;

“Director” means the Director of the Department of Merchant Shipping;

“Surveyor” means a Surveyor of the Department of Merchant Shipping;

“Owner” means the registered owner of a Cyprus ship and includes the Bareboat Chartered of a ship, which is registered in parallel in the Cyprus register, as defined in Part VA of the Merchant Shipping (Registration of Ships, Sales and Mortgages) Laws 1963 to 2004.
                       

3. INTERPRETATION
3.1 The interpretation of this Note remains the exclusive prerogative of the Department.  Any reference to the application of this Note is permissible only with the consent of the Department.


4. REQUEST FOR SPECIAL INSPECTION
4.1 A request for special inspection must be submitted in writing to the Department, by the Owners of any ship to which this Note applies.
4.1.1 A request for assessment may be made also by the Company (as defined in Regulation IX/1SOLAS 74 as amended and Regulation I/1.23 of STCW 78 as amended) on behalf of the Owner.
4.2 The applicant must:


1. submit the documentation required in section 5 with complete and correct information;
2. instruct the vessel’s Classification Society to make available to the Department their records relating to the vessel;
3. make appropriate arrangements and provide safe access to and from the vessel for the Surveyor and assist him so that the inspection and the audit, if required, may be carried out in accordance with the requirements of this Note;
4. advise the Department on the place and dates on which the vessel will be available for the inspection in accordance with the Department’s circular No. 20/98.
   
   
5. DOCUMENTS to be SUBMITTED
5.1 The plans, drawings and other documents to be submitted should contain all necessary information for checking compliance with the requirements of this Note.
5.1.1 In the case of cargo ships, the copies of the following certificates, records and reports, as applicable, should be submitted unless these have already been submitted and can be found in the files of the ships kept by the Department of Merchant Shipping:


1. Certificate of Registry (of the foreign registry, if the ship has not been registered in Cyprus yet)
2. International Tonnage Certificate (1969)
3. Cargo Ship Safety Construction Certificate
4. Cargo Ship Safety Equipment Certificate
5. Cargo Ship Safety Radio Certificate
6. International Load Line Certificate 1966
7. International Oil Pollution Prevention Certificate
8. Exemption Certificate, if any
9. Record of Condition of Assignment of Freeboard
10. Road of Safety Equipment
11. Record of Construction and Equipment – Supplement to Oil Pollution Prevention Certificate
12. Vessel’s Classification Status Record
13. Last thickness determination report
14. Enhanced Survey Programme File, if the vessel is subject to the provisions of Regulation XI/2 of SOLAS 74 as amended.  In such a case item 13 does not apply.
15. Interim Safety Management Certificate, or Safety Management Certificate, if issued
16. Interim Document of Compliance or Document of Compliance, if (15) has been issued.
    
    
5.1.2 In general, the following plans and documents are required to be submitted:


1. General Arrangement
2. Midships Section
3. Profile and Deck plan
4. Shell Expansion
5. Capacity Plan
6. Safety and Fire Control Plan

5.1.3 In the case of a passenger ship, liquefied gas carrier, or a chemical tanker, additional drawings and documents are required and these will be advised on a case by case basis.

5.2. The Department may request, at any stage during the special inspection, the submission of other plans and documents if these are found to be necessary and appropriate.

5.3. For ships other than passenger ships or cargoships, the Owner should consult the Department on the documentation required.

6. INSPECTION

6.1. General
The thoroughness or stringency of the inspection depends on the condition of the ship and its equipment as well as the result of the examination of the classification Society’s records.  Should any doubt arise, as to the maintenance or the condition of the ship or its equipment, then further examinations and testing may be conducted as considered necessary by the Surveyor.

The Surveyor may take into account the examination of components made within the last twelve months, by Surveyors of the Vessel’s Classification Society.

The Department may give special consideration to vessels which, are bound to sail in ballast to a repair port, for the purpose of carrying out complete special survey or convention works of a major character or are to proceed to a port where they will be laid-up.

The Department may specially consider the cases of vessels, which have undergone complete special surveys during the last twelve months and have fully complied with the applicable Rules and Regulations of their Classification Society.

6.2. Extent of Inspection

Notwithstanding the above and without prejudice to the provisions of this subsection the Department, following consideration of the records of the Classification Society and of the documentation to be submitted, will advise the Applicant well in advance of the inspection, of the anticipated extent of the inspection, to enable him to make appropriate arrangement.

The Department will also advise him of the enclosed spaces, which will have to be opened and rendered safe for entry and internal examination.

The special inspection will cover the structure of the ship, its propulsion and auxiliary machinery, its safety equipment, telecommunications, crew accommodation, crew certification and operational competence as well as the safety management system of the ship, for ships where chapter IX of SOLAS 1974 as amended applies.

6.3.Additional Requirements

The Department may specify additional survey requirements if it deems fit for the type of the vessel concerned.  Notwithstanding the aforesaid, its should be noted that passenger ships, tankers, liquefied gas carriers and chemical tankers received special consideration and detailed requirements are issued for each type of vessel separately.

6.4. Audit

The audit plans and the extent of the audit will be made known to the applicant in advance of the shipboard visit of the attending Surveyor.

The audit will cover all aspects of the ISM Code and all parts of the safety management system..

The audit can be held during a separate visit, if the applicant so wishes.  In such a case, a relevant agreement may be reached with the Department.

6.5.Duration of the Inspection
1. The working time required by a marine surveyor for a special inspection is estimated as follows, provided that the vessel is ready in all respects for the inspection, the crew is available and no cargo operation is carried out during the inspection
1. For ships of 3000 GT or less: 8 hours
2. For ships with a gross tonnage over 3000 but not exceeding 40000 GT: 16 hours
3. For ships exceeding 40000 GT: 24 hours
   For ships in dry-dock, the working time mentioned above should be increased by 8 hours for the first category and by 12 hours for categories (b) and (c).
   The above working times are indicative and may be extended if the conditions of the ship so warrants.
   
                                              
2. In case the ship cannot stay in port for the entire period required for its inspection, due to its commercial commitments, the owner may request the inspection to be conducted by two surveyors.
3. Inspection of ships in dry dock must be arranged during the last 3 days in the dry dock in order to enable the surveyor to check also the crew’s qualifications and operational competence.
   
   
7. DEFECTS AND DAMAGE FOUND DURING THE INSPECTION

The Owners or the Purchaser of a vessel under survey for the purposes of this Note, undertake to report, without delay, to the Classification Society and Flag State, any defects or damage found during the inspection which could invalidate the conditions for which the class of the vessel has been assigned or affected the safety of the ship or the efficiency and completeness of its equipment.

8. DISCLOSURE OF INFORMATION

The Department will not disclose any technical information, drawings and survey reports to any person other than the Owners or Purchaser or those who have been given the authority to receive such information by the Cyprus legislation, or by a Cyprus court decision, or by a written declaration of the Owners or the Purchaser.

9. REPORTING

On completion of the special inspection the Surveyor will submit a report to the Director of the Department with his assessment as to whether, as a result of the review of the documents submitted and the inspection undertaken and subject to compliance with the recommendations, if any, the ship under consideration should be registered in the Register of Ships or in the Special Book of Parallel Registration, as the case may be.

On completion of the special inspection, the Department will make available to the Applicant the recommendations and the non-conformities, if any, of the assessment of the vessel under consideration for his information and action.

The report of the attending Surveyor is confidential to the Department and cannot be disclosed to any third party.

10. APPEAL FROM SURVEYOR’S RECOMMENDATION

If the Applicant considers that the Surveyor’s recommendations regarding deficiencies or non-conformities identified are unnecessary or unreasonable, an appeal may be made to the Director, who may decide on the matter or direct a Special Examination to be held.