Marine Operations Note: 03/2016 - Cost-saving Provisions for Vessels and Offshore Assets

19 May 2016

MARINE OPERATIONS NOTE: 03/2016

SUBJECT: Cost-saving Provisions for Vessels and Offshore Assets

TO: All Owners and Operators of Liberian and NON-Liberian Flag Vessels and MODUs, Financial Institutions, and Legal Advisors

In reaction to the sustained downturn in the maritime and offshore market sectors, this advisory is issued to help mitigate the burden and financial strain placed on shipowners and vessel managers. The Liberian Registry considers it essential to support the shipping industry during these times of economic uncertainty.

The following expenses related to the Registry with potential areas for costs savings are highlighted below. We encourage you to review these to consider if any of these solutions will help you to reduce your operational expenses.

(1) Vessel Lay-up

• The Liberian Registry offers cost savings provision related to vessels entering lay-up status. If you will be taking a vessel out of service, we refer you to Marine Operations Note 02/2016 for further details and consideration.

(2) Registration & Mortgage Recordation

• The following initial statutory registration and administrative fees are waived: o Initial certification fees (applicable to newbuildings and flag transfers); and o Mortgage recording fees at initial registration in Liberia.

• The following administrative practices are recommended:
  • Utilize LISCR offices/Liberian Special Agents in lieu of notarizing registration documents;
  • Utilize LISCR premises for documentary closings (registration and/or mortgage); o Utilizing electronic certificates to avoid the need and expense of requesting a LISCR representative to hand deliver new registration certificates;
  • Enrolling in e-Delivery of vessel certificates and documents avoids courier fees; and o When possible do not request apostille of all Memorandum of Agreements, as this complicates the process, costs money and is not required by Liberian regulations.

(3) Tonnage Tax

• The Registry’s Accounting department will permit bi-annual installment payments of tonnage tax, instead of an annual lump-sum payment, upon request.

(4) Maritime Operations

• Fees for ISM and ISPS certificate re-issuance for vessels transferring into the Registry may be waived; and
• Utilizing the Registry’s online application system for the renewal of BCLC, CLC and WRC certificates (https://emaritime.liscr.com) avoids courier and administrative fees.

(5) Technical

• Apply to extend vessel dry dock period from every 5 years to every 7.5 years; (applicable to nonESP ships such as container, LPG and LNG ships only—subject to class society and flag review and approval).

(6) Audit & Inspection

• Harmonize vessel ISM and ISPS audits and annual safety inspection in one day by using one of the Liberian Registry’s inspector/auditors;
• Enter into Block Fee Agreements for further discounts and annualized fees (available for ISM, ISPS, and MLC attendances); and
• Utilize the Registry’s affiliated audit company SeaNet to provide local ISM, ISPS and MLC internal auditors avoids travel and related expenses when sending in-house technical staff to far away ports.

(7) Seafarers Certification & Documentation

• Establishing a Seafarer Electronic Application System (SEA System) account will avoid paper application fees by sending seafarer applications electronically;
• Submitting multiple applications per transmission in SEA System will reduce courier fees;
• Renewing seafarer documents before they expire will minimize requests to expedite documents and lower the cost of reordered special qualification certificates;
• Apply for Certificate for Receipt of Applications (CRAs) only when necessary; and
• Eliminate applications for special qualification certificates that are not mandatory pursuant to the minimum safe manning certificate.

(8) Reduce or Eliminate Wire Transfer Costs

• Consolidate payments to reduce wire transfer fees;
• Establish a draw down account to reduce potential bank fees associated with multiple lump sum payments; or
• Utilize check or credit card payment.

Ship owners and financial institutions are invited to take advantage of the financial and operational benefits offered by these provisions. For more information, please contact your local regional office or the relevant Liberian Registry departments:

Registration & Mortgage Recordation: registrations@liscr.com

Tonnage Tax: tonnagetax@liscr.com

Maritime Operations: marops@liscr.com

Technical: technical@liscr.com

Audit and Inspections Division: audit@liscr.com

Seafarer Certification & Documentation: seafarers@liscr.com

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