Shipping News - July 2012

In brief - Roundup of maritime law reform, Australian cases and international cases

Several reforms to maritime law passed through Australian Federal Parliament and came into effect on 1 July 2012.

Colin Biggers & Paisley activities - Course on International Trade and Cargo Claims, May 2012

Colin Biggers & Paisley hosted the Institute of Maritime Law of Southampton University (UK) International Trade and Cargo Claims Course in our office on 21 to 23 May 2012. Katherine Jones and Michael Russell, Senior Associates, attended the course together with a number of other registrants.

Package of reforms of Australian Maritime Law comes into effect

In CBP Shipping News - April 2012 and our article Shipping reforms may not achieve desired results for Australian economy, we discussed the Australian federal government's package of reforms of maritime law. The reforms have now passed through the federal parliament and came into effect on 1 July 2012.

The following acts have been passed:

The Coastal Trading (Revitalising Australian Shipping) Act 2012 The Coastal Trading (Revitalising Australian Shipping) (Consequential Amendments and Transitional Provisions) Act 2012 The Shipping Reform (Tax Incentives) Act 2012 together with amendments to the Income Tax Assessment Act 1997, the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953 Amendments to the Shipping Registration Act 1981 to establish the Australian International Shipping Register and the Australian General Shipping Register, together with consequential amendments being made to the Australian Maritime Safety Authority Act 1990, the Marine Navigation (Regulatory Functions) Levy Collection Act 1991 and the Navigation Amendment Act 2011 Reduced requirements for applying for a temporary licence

One of the most contentious changes the new legislation has made is to discontinue the single voyage permit system which had operated for a number of years. Presumably, in part to ameliorate that position, the requirements for applying for a temporary licence have been changed since the introduction of the Coastal Trading Bill 2012.

In its original form it required an applicant for a temporary licence to give information in relation to at least 10 voyages which it proposed to undertake during the succeeding 12 months, as well as the details of the cargo which it expected to carry. That has now been reduced to a requirement that only five voyages need to be identified. It is understood that a wide range of applicants are making such applications, including manufacturers, shipping agents and shipowners.

Ships predominantly used to engage in international trading

Another significant change that has been made to the draft Bill to amend the Shipping Registration Act and introduce the new Australian International Shipping Register is to include a new definition of the words "predominantly used to engage in international trading".

These words are defined as follows: "a ship is predominantly used to engage in international trading if, in a calendar year, the percentage of the time that the ship is used to engage in international trading exceeds the percentage of the time that the ship is used to engage in coastal trading or intra-state trading".

The significance of this definition is that the Registrar of Ships "must refuse to register the ship in the international register" if he is satisfied that:

"(a) the ship will not be predominantly used to engage in international trading..."

Application of the National Standard for Commercial Vessels

Also introduced into federal parliament in May 2012 were the Marine Safety (Domestic Commercial Vessel), National Law Bill 2012 and the Marine Safety (Domestic Commercial Vessel) National Law (Consequential Amendments) Bill 2012 which will replace the current state and territory laws governing the operational...