Shipping Comparative Guide

• Law Firm: Mayer Brown
• Subject Matter: Transport, Marine/ Shipping
• Author: Mr Conor Warde and Bill Amos
• Published date: 06 March 2023

1 Legal framework

1.1 Which legislative and regulatory provisions govern the shipping sector in your jurisdiction?

No answer submitted for this question.

1.2 Which bilateral and multilateral instruments on shipping have effect in your jurisdiction?

No answer submitted for this question.

1.3 Which bodies are responsible for enforcing the applicable laws and regulations? What powers do they have?

No answer submitted for this question.

1.4 What is the regulators' general approach in regulating the shipping sector?

No answer submitted for this question.

2 Registration

2.1 What types of vessels may be registered in your jurisdiction? What requirements and restrictions apply in this regard? Is dual registration permitted?

All types of vessels may be registered in Hong Kong, other than the following:

• non-self-propelled barges carrying petroleum products or dangerous goods of any substance which fall within the purview of the International Convention of Pollution from Ships Annex I, II or III;
• accommodation barges;
• fishing vessels;
• ships engaged in processing living resources of the sea, including whale and fish factories and aqua farming vessels;
• specialised ships engaged in research, expeditions or surveys;
• non-convention ships serving exclusively within the domestic waters of a country (other than Hong Kong and mainland China waters);
• ships propelled by nuclear energy; and
• mobile offshore drilling units.

Dual registration is not permitted in Hong Kong.

2.2 What entities may register a vessel in your jurisdiction? What requirements and restrictions apply in this regard?

The entities that are permitted to register a vessel include:

• individuals who are residents of Hong Kong and hold a valid Hong Kong identity card;
• companies incorporated in Hong Kong; and
• companies incorporated outside Hong Kong, but which have established a place of business in Hong Kong and have registered under Part 16 of the Companies Ordinance (Cap 622) in Hong Kong as a 'non-Hong Kong company' with a place of business in Hong Kong.

There are no restrictions on the ownership of shares in a company owning a Hong Kong ship or on the persons who may be directors of such company.

2.3 What body administers the shipping register in your jurisdiction?

The Hong Kong Shipping Register is administered by the Hong Kong Ship Registry of the Marine Department of Hong Kong under the Merchant Shipping (Registration) Ordinance (Cap 415).

2.4 What information is included in the shipping register? Is this publicly accessible?

The information in the Hong Kong Shipping Register can be publicly accessed by applying to the Hong Kong Ship Registry for a transcript of the register. The register is available for inspection during the normal office hours of the registry. The following information appears on the register:

• the name of the ship;
• such survey details as the registry considers necessary for registration;
• the details of the ship's origin that were provided when the application for registration was made;
• the name, address and a description of each owner, together with details of the shares that each owner has in the ship;
• the name and address of the representative person for the ship; and
• details of all mortgages registered.

In the case of a demise chartered ship, in addition to the foregoing information, the following appears on the register:

• the name and description of the demise charterer;
• the period of the demise charter as specified in the charterparty;
• the name and description of the owner of the ship; and
• the details of any mortgage granted by the owner of the ship.

It is not possible to record details of any beneficial owner where the ship is held on trust by a trustee.

2.5 What are the formal and documentary requirements for registration of a vessel? What is the process for registration? What is the effect of registration? What is the effect of deregistration?

Documentary requirements and process: An application for registration is made to the Hong Kong Ship Registry on a prescribed form (all the forms can be downloaded at www.mardep.gov.hk/en/forms/home.html), which includes the consent of the representative person.

Completion of the application form requires:

• the particulars of the ship, its owners and demise charterers (if any); and
• details of their qualifications to own a ship, such as evidence of incorporation of a company.

In the case of a demise chartered ship, the application must also include:

• the consent of the owner of the ship;
• a declaration by both the owner and demise charterer that
• • the demise charterer is qualified to register the ship as a demise charterer in Hong Kong;
  • the demise charterer will have possession and control of the vessel; and
  • the vessel will not be registered elsewhere; and
• a certified true copy of the demise charterparty.

At registration, the following should be produced to the registry:

• evidence of the proposed owner's title by way of the builder's certificate, bill of sale or court order vesting title to the ship in the owner;
• proof that the ship is free of encumbrances and evidence of deletion of the ship from its previous registry (if any) or, if the ship was last registered concurrently in more than one place, from the registry of each such place;
• the certificate of survey confirming the tonnage and major particulars of the ship; and
• evidence of marking the name on the ship.

If it is not possible to produce the original title documents at the time of registration, the ship can be provisionally registered for a period of one month, during which the original title documents should be submitted to the registry. Provided that adequate reasons for delays are given, it is possible to renew provisional registrations for a further period of one month for any one application at a time.

Effect of registration: Once a ship is registered in Hong Kong:

• the ship can enjoy the benefits in connection with flying the Hong Kong flag; and
• the government of the Hong Kong Special Administrative Region will exercise its jurisdiction over the ship.

The ship's title and mortgage registered on the register are binding under the Merchant Shipping (Registration) Ordinance.

Effect of deregistration: If the owner or the demise charterer of a registered ship wishes to close the ship's registration, it must:

• obtain the consent of all registered mortgagees (if any) to the closure; and
• give notice in writing to the registry that it wishes to close the ship's registration, together with evidence of the mortgagee's consent to closure.

The registry will issue a deletion certificate as directed by the owner on...