Luxembourg

Bareboat Charter Registration

Bareboat charter registration into and out of the Luxembourg flag is permitted. Ownership rights will remain with the country of primary registry.

A ship to be entered in the Luxembourg Register on a bareboat basis must submit all information necessary in support of full registration. Applications for bareboat charter registration must also state the names and addresses of the charterers of the ship. The registration application must be accompanied by the following documents:
• Proof of the nationality of each of the persons, and the articles of association of each of the companies that have chartered the ship
• Copy, authenticated by a notary public, of the bareboat charterparty, including all annexes thereto and where appropriate, any subchartering charterparties
• Consent of the mortgagees to the entry of the ship in the Luxembourg Register, certified by a formal record
• Certificate issued by the country of the foreign flag evidencing the ownership of the ship and, where appropriate, any financial encumbrances attaching to it
• Where appropriate, authorization by the foreign authorities for the ship to be chartered out on a bareboat basis and/or a declaration to the effect that such authorization is not required and that the legislation of the State in question permits bareboat chartering out
• Express undertaking by the charterer to the effect that
• the ship will fly the Luxembourg flag to the exclusion of any other and will indicate Luxembourg as its port of registry for as long as it is operated under the relevant bareboat charter agreement;
• the charterer will inform the Commissioner of Maritime Affairs and the Registrar of Mortgages when the bareboat chartering agreement has been terminated, for whatever reason, or if a third flag State has given authority for the ship to fly its flag; and
• all certificates issued by the Luxembourg authorities will be returned within 30 days of the expiration of the bareboat charter party and/ or with effect from the cancellation of the ship's entry in the Luxembourg Shipping Register

Registration Certificates of ships that have been registered on a bareboat charter basis shall be valid for a maximum period of two years and may not exceed the duration of the bareboat charterparty. Such Registration Certificate shall specify that the ship has been bareboat chartered in and shall state the registration number allocated to it in the foreign shipping register in which it is entered.

Ships which have been granted full registration in the Luxembourg Shipping Register may only be bareboat charter registered out to a foreign register provided they have received authorization from the Minister. Applications for authorization must state the name of the ship; the ship's registration number; the names and addresses of the applicant and the charterer; and the details of the foreign register in which the ship is to be entered. Applications must be accompanied by the following documents:
• Copy, authenticated by a notary public, of the bareboat charterparty including all annexes and any subchartering charterparties
• Extract from the Register issued by the Registrar of Mortgages evidencing the ownership of the ship and any mortgages against it
• Copy, authenticated by a notary public, of the owner's consent and that of any mortgagees to the registration of the ship on a bareboat basis in a foreign flag State
• Express undertaking by the owner of the vessel to the effect that
i) he will give the Commissioner of Maritime Affairs within 30 days of the granting of the authorization to charter out and the commencement of chartering out, all certificates issued by or on the authority of Luxembourg as well as an “authenticated” copy of the Registration Certificate issued by the foreign State; and
ii) he will inform the Commissioner of Maritime Affairs who shall forward the information to the Registrar of Mortgages when the bareboat charterparty has been terminated for whatever reason and the owner of the ship has taken possession of it
• Written agreement between the owner and the charterer expressly stipulating:
• that the right to fly the Luxembourg flag and to indicate Luxembourg as the ship's port of registry will be cancelled or suspended for as long as the ship is bareboat chartered out;
• that all technical safety standards imposed by Luxembourg maritime legislation or by the international conventions to which Luxembourg is a party will be strictly enforced throughout the period of chartering out and similarly that Luxembourg social security standards will be observed if the ship is chartered out with her crew;
• the temporary suspension of all endorsements of approval of the ship's certificates, stamped under the authority of Luxembourg;
• that in the event that there should occur while the ship is bareboat chartered out a major accident resulting in the loss of the ship or in serious damage to the property or to the environment, the owner and the charterer will cooperate fully so as to facilitate the task of the experts appointed by the Commissioner of Maritime Affairs in respect of the conduct of inquiries and any interview of the ship's master and crew that may prove necessary; and
• that any amendments or additions to the original bareboat charterparty between the contracting parties and any subchartering charterparty must be notified to the Commissioner of Maritime Affairs stating the effects they will have on the original agreement (such amendments and/or additions shall also be subject to the consent in writing of any preferred creditors or mortgagees whose interest may be affected)
• Declaration by the relevant foreign authorities stating that in principle the ship may be registered on a bareboat chartering basis together with a document certifying that there is no reason why the details of the ownership of the ship and any in rem rights associated with it should not continue to be entered in the Luxembourg Shipping Register.

Applications for authorization of bareboat chartering out which have been duly approved by the Minister or his delegate will be notified to the applicant by registered mail. Within 30 days of the issuance of the authorization, the applicant may apply to the Registrar of Mortgages for a Registration Certificate which shall state “The certificate within grants no right to fly the Luxembourg flag while the vessel is subject of the demise charter filed with the register of maritime mortgages.”