Dominica

Bareboat Charter Registration

Bareboat charter registration in essence temporarily permits a vessel to fly the flag of another country while ownership continues to be registered in the owner's State. It provides a welcome element of flexibility in a number of commercial situations. While registered pursuant to a bareboat charter, a vessel is allowed, with the consent of its owner's State of registry, to fly the flag of its bareboat charterer's State for a period determined by that State's law or, if for a shorter time, by the term fixed in the bareboat charterparty.

The attributes of registration are therefore divided between the registry of the owner (sometimes called the "underlying" registry), and that of its "user," the bareboat charterer.

Bareboat registration is specifically recognized in international law, as reflected in the International Convention on Maritime Liens and Mortgages, 1993, and the provisions of the U.N. Convention on the Law of the Sea. Under this system, the laws of both the State of bareboat charter registry and the State of underlying registry should contain provisions for maintaining the status of existing mortgages during the period that the vessel is subject to bareboat registration.

The laws of both States should also recognize, at least in general terms, the exclusive right of enforcement and jurisdiction by the bareboat charterer's State, whose flag the vessel flies, of its rules and standards for the enforcement of safety at sea, the protection of the marine environment, licensing, and other duties of the flag State, as outlined in Article 94 of the U.N. Convention on the Law of the Sea.

Bareboat registry into or from the Commonwealth of Dominica is not available where the laws of the State into or from which registry is sought do not generally coincide with the provisions of the International Maritime Act, Sections 64 through 73. In particular, the laws of both States should explicitly recognize that the law of the State of underlying registry is exclusively applicable to mortgages and related instruments recorded therein.

Bareboat Charter Registration into the Commonwealth of Dominica Flag
Where the laws of both States permit, a vessel registered in another State can be bareboat registered under the flag of the Commonwealth of Dominica, giving it the right to fly the Dominica flag as provided in Part III of the International Maritime Act. Commonwealth of Dominica law will apply to all aspects of the vessel's operation, navigation, and management during this period of bareboat registry. The law of the State of underlying registry (not the Commonwealth of Dominica), however, shall apply to the vessel's mortgage and related recorded instruments, in accordance with Section 68 of the Act.

A notice that a mortgage or related instrument has been recorded in the State of underlying registry may itself be recorded, by the Maritime Administrator, if the parties so desire. During the period of bareboat charter registration under the Commonwealth of Dominica flag, the vessel may not fly any flag other than that of the Commonwealth of Dominica, nor show any homeport other than Roseau or Portsmouth.
In order for the application for bareboat registry to be granted, the vessel entering the Commonwealth of Dominica flag must satisfy the requirements for the issuance of a Provisional Certificate of Registry, except of course for ownership and cancellation from present country of registry. Registration will be in the name of the bareboat charterer. The following are required prior to granting Commonwealth of Dominica bareboat charter registration.

Application for Bareboat Charter Registration
The application for bareboat charter registration should be completed on the application for Official Number, Call Sign and Registration of Bareboat Charter Vessel. The application should be signed and dated by the charterer. The application, with all required documents, fees, and payment of service fee should then be submitted to the representing DMRI office.
Required Documents to be Submitted with Application
Provisional Registration Documents
The documentation for a bareboat charter registration is almost identical to that for an initial registration (see Section 2(B) of this Chapter). The vessel must meet all the requirements for initial vessel registration before the issuance of a Provisional Certificate of Registry, except for:
Proof of Ownership: Registration will be in the name of the bareboat chartering entity, and cancellation from present country of registry is not required.
Charterer's Letter of Request: Copies of a letter of request should be prepared and submitted, typed on the letterhead of and signed by the Commonwealth of Dominica bareboat charterer of the vessel, requesting Commonwealth of Dominica bareboat charter registration, and containing:
The present name and official number of the vessel;
The present country of registry of the vessel with address, telephone or telefax number of the country's vessel registration bureau or department;
The names, addresses and telephone/telefax numbers of the shipowner and vessel's manager;
The names, addresses and telex/telefax numbers of all holders of any registered mortgages, hypothecations or similar recorded charges upon the vessel;
The dates contemplated for commencement, and earliest lawful termination, of the bareboat charterparty.
Charterer's Oath or Affirmation of Undertaking: This is a duly acknowledged letter addressed to the Commonwealth of Dominica Maritime Administration, c/o Dominica Maritime Registry, Inc., (see Chapter V, Section 2(B)) pursuant to Sections 64 & 65 of the Act, containing statements that:
The vessel will not fly any flag other than the Commonwealth of Dominica flag, nor show any home port other than Roseau or Portsmouth, while the vessel is subject to bareboat registration under the laws of the Commonwealth of Dominica.
During the period of registration, the bareboat charterer recognizes that the Commonwealth of Dominica has exclusive jurisdiction over the vessel, in its capacity as flag State.
The bareboat charterer will promptly notify Dominica Maritime Registry, Inc., to the attention of its Vessel Registration & Recordation Division, whenever the charterparty has been terminated for whatever reason or that another country has accorded to the vessel the right to fly its flag.
Within 30 days of the termination of the bareboat charterparty or the current Commonwealth of Dominica Provisional Certificate of Registry, whichever is earlier, the charterer will return to DMRI the vessel's Provisional Certificate of Registry and all other certificates issued to it by or on behalf of the Commonwealth of Dominica.
The bareboat charterer recognizes that, under Section 67 of the International Maritime Act, it shall be liable to pay an administrative penalty as a result of its failure to comply with that section of the Act.

Recordation of Charterparty
Section 66 of the Act requires that the bareboat charterparty be recorded. The original charterparty, together with any annexes, should be submitted, with English translation if in any other language, with proof of due execution (see Chapter V, Section 2(B)), to Dominica Maritime Registry, Inc. Certification of copies of charterparties and related instruments may be made by a notary public or any other officer authorized to take acknowledgments or authenticate documents, as described in Chapter 5, Section 2(B).
Proof of recordation of the charterparty, in the form of a certified copy of such recording issued by DMRI will constitute prima facie evidence of recordation of the charterparty as required by Section 66 of the Act.
Please note that any subsequent amendments or addenda to the charterparty or any subsequent bareboat sub-charterparties must be submitted for recording within thirty (30) days of execution with proof of due execution and English translation, if applicable.
Official certificate issued by the present country of registry setting forth the ownership of the vessel and recorded encumbrances.
Written consents, with proof of due execution, of the shipowner and the mortgagee(s), if any, to the Commonwealth of Dominica registration.
Withdrawal of the Right to Fly Present Flag: Satisfactory evidence that the present country of registry will withdraw from the vessel the right to fly its flag while the vessel is under Commonwealth of Dominica bareboat charter registration.

Bareboat Registry in a Foreign State
Part IV of the International Maritime Act governs bareboat charter registration of a vessel, registered in the Commonwealth of Dominica, under the flag of a foreign State. Under this Part, all preferred ship mortgages recorded in the Commonwealth of Dominica remain in full force and effect, and are governed exclusively by Commonwealth of Dominica law during the period of bareboat registration in the foreign State.
Certificate of Permission: A Letter of Permission for Foreign Bareboat Charter Registration will be issued when all requirements in the following sections have been satisfied.
Application for Permission to Bareboat out of the Commonwealth of Dominica
Letter of Application: A letter of application for permission to obtain foreign bareboat charter registration should be submitted to DMRI. No application form is used. One (1) signed original letter of application should be submitted, containing:
The name and official number of the vessel;
The name, address, telefax and telephone numbers of the bareboat charterer;
The vessel's intended service, the nature of the cargo and geographical regions in which it will navigate; and
The dates contemplated for commencement of the charterparty and for its earliest termination.
Letter of Permission: A Letter of Permission for Foreign Bareboat Charter Registration will be returned to the owner, indicating the consent of the Commonwealth of Dominica to the proposed foreign bareboat charter registration.
Required Documents to Accompany Letter of Application
Letter of Consent of Preferred Mortgagees: If the vessel is already subject to one or more Commonwealth of Dominica preferred ship mortgages, the written consent of each mortgagee to the proposed foreign bareboat charter registration, usually in the form of a letter, must be presented to DMRI.
Owner's Undertaking: This statement is in letter form, and must be acknowledged as generally described in accordance with Chapter I, Section 3(D), and Chapter V, Section 2(B)(2). In the statement, the owner undertakes:
to furnish the existing Commonwealth of Dominica Certificate of Registry to DMRI within 60 days of the issuance of the Certificate of Permission for Foreign Bareboat Charter Registration or within 30 days of the date of commencement of the charterparty, whichever is later; and
to notify DMRI immediately whenever the charterparty has terminated, for whatever reason, or when the owner has otherwise retaken possession of the vessel.

Pursuant to Section 72 of the International Maritime Act and Commonwealth of Dominica Maritime Regulation 28, the Maritime Administrator must have evidence in its possession that both the owner and the bareboat charterer are aware that the Commonwealth's jurisdiction over the vessel has been withdrawn during the period of foreign bareboat charter registration, and that as soon as that period ends, the safety and equipment standards required under Commonwealth of Dominica law, in accordance with the applicable international conventions and agreements to which the Commonwealth is party, will be immediately and fully implemented and observed by the owner. The agreement between the owner and the bareboat charterer, acknowledged in accordance with Chapter V, Section 2(B), must contain the following statements:
Waiver of the Vessel's Right to Fly the Commonwealth of Dominica Flag: During the period of foreign bareboat charter registration, the owner and bareboat charterer will neither permit the vessel to fly the flag of the Commonwealth of Dominica, nor show Roseau or Portsmouth as her home port while the vessel remains in the service of the bareboat charterer under the charterparty, and that the owner and bareboat charterer acknowledge and agree that the vessel shall immediately revert to the jurisdiction and control of the Commonwealth of Dominica when the charterparty is terminated or expires, or possession and control of the vessel is retaken by the owner.

The Vessel's Commonwealth of Dominica Standards will be Maintained: At all times pending the vessel's return to the Commonwealth of Dominica flag, it will be equipped, maintained and navigated to standards which are no less than those laid down in the International Maritime Act and Maritime Regulations, including the relevant International Conventions to which the Commonwealth of Dominica is a party.
Charterparty: As provided in Commonwealth of Dominica Maritime Regulation 29, the charterparty upon which foreign bareboat charter registration is to be based must be submitted for filing at the offices of DMRI.
Authentication of Charterparty: This charterparty, and any amendments thereto, must be accompanied by proof of due execution, which is a statement that the charterparty was signed in accordance with the laws of the country or State in which it was signed, and the signature, name and title of the notary public or other official must be legible.
Proof of Due Execution: Please note that this is a legal certification — not an oath — that the instrument was duly executed by the person signing it. Time and expense may be saved if the charterparty itself is signed and acknowledged before a Special Agent of the Maritime Administrator, who can be contacted at DMRI. Authentication may also be by Hague Convention Apostille or by a notary public or other officer authorized to take acknowledgments.


Filing of Charterparty
Initial Charterparty: A copy of the bareboat charterparty, acknowledged or with proof of due execution, together with all annexes or addenda thereto and any bareboat sub-charter parties, with English translation if in any other language, shall be filed with DMRI. Filing of these documents with DMRI does not make them a part of the public record.

Amendments to Charterparty: Subsequent amendments or addenda to the bareboat charterparty, with an English translation if they are in any other language, are to be filed as provided above together with a letter noting which sections, if any, have been altered, together with consent(s) thereto by the mortgagee(s) of the vessel.

Other Conditions of Foreign Bareboat Charter
Section 73 of the International Maritime Act provides that after the vessel's current Commonwealth of Dominica Certificate of Registry has been surrendered to DMRI, a new Restricted Provisional Certificate of Registry shall be issued, showing that the right to fly the flag of the Commonwealth has been withdrawn. This legally establishes that upon termination of the underlying bareboat charterparty, for whatever reason, the underlying jurisdiction of the Commonwealth shall be reinstated by operation of law. Thus, there is no time that the vessel is stateless. When foreign bareboat charter registration terminates, for whatever reason, the full jurisdiction of Commonwealth of Dominica as flag State is immediately restored by law.

Accordingly, the Provisional Certificate of Registry issued under Section 73(2) of the International Maritime Act, is retained in the custody of the Maritime Administrator during the period of foreign bareboat charter registration, together with the Commonwealth of Dominica Ship Radio Station License.