Member Article

The main legal acts regulating the registration of seagoing ships in Lithuania are the Law on Merchant Shipping, the Rules for Registration of Seagoing Ships in Lithuania approved on 4 July 2005 by order No. 3-301 of the Minister of Transport and Communications, and the Decision of the Government of Lithuania “On the Register of Seagoing Ships of the Republic of Lithuania”. The following ships can be registered at the Register of Seagoing Ships of the Republic of Lithuania (the Register): 1. ships which are projected and constructed for the navigation at sea and have appropriate documents proving this and providing that the shipowner is a citizen of the Republic of Lithuania or the legal entity registered in the Republic of Lithuania; 2. seagoing ships under construction if: 2.1. the project of the ship under construction has been prepared and coordinated in accordance with the laws and other legal acts of the Republic of Lithuania; 2.2. a shipbuilding contract has been concluded; 2.3. not less than 20% of the ship’s which is under construction hull works have been completed; 3. a seagoing ship which is registered in the foreign state can be temporarily registered at the Register providing that she has been chartered on bareboat charter basis by a citizen of the Republic of Lithuania or the legal entity registered in the Republic of Lithuania. Administrative functions of the Register are performed by the Lithuanian Maritime Safety Administration (the Administration). The right to fly Lithuanian flag is granted to the ships registered at the Register. The ship purchased abroad enjoys the right to fly Lithuanian flag from the moment when a temporary certificate confirming such right is issued by the consular official of the Republic of Lithuania. The temporary certificate is valid until the ship is registered at the Register but not longer than three months. The ship flying Lithuanian flag falls under jurisdiction of the Republic of Lithuania, and does not have right to change the flag during voyage or while staying in the port, except the ship is on bareboat charter. In order to register the ship at the Register, the shipowner has to submit the following documents (the Registration documents) to the Administration: 1. Request to register the ship, stating the name of the ship which was coordinated with the Administration; 2. Original or notarised copy of the document proving the ownership of the seagoing ship. If the document proving the ownership of the seagoing ship is issued in a foreign language the translation into Lithuanian language is needed; 3. Original of the document confirming the deletion from the Register (if the seagoing ship was registered earlier) 4. Notarised copy of Certificate of Registration of Legal Entity, in case the shipowner is legal entity registered in the Republic of Lithuania. If the shipowner is a citizen of the Republic of Lithuania, the document confirming his/her identification must be provided; 5. Copy of the Certificate of Measurement of the Ship issued by a recognised classification society or the Administration; 6. Copy of the Permit for the Ship’s Radio Station issued by the Communications Regulatory Authority; 7. Copy of Certificate of Sea Class issued by a recognised classification society; 8. Copy of Certificate of the Safety of the Ship’s Radio Equipment issued by a recognised classification society or the Administration; 9. Act of primary inspection issued by the Administration or a recognised classification society; 10. Certificate on the consent to register the fishing ship at the Register from the Fishing Department of the Ministry of Agriculture of the Republic of Lithuania (for fishing ships only); 11. Request to issue the Minimum Safe Manning document. On presentation of the above mentioned documents, the ship is registered at the Register within three working days. The following documents are issued to the shipowner: 1. Certificate of the Ship’s Registration at the Register of Seagoing Ships of the Republic of Lithuania (stamp duty for issue of this document is LTL 75); 2. Permit to fly Lithuania’s State Flag (LTL 75 stamp duty); 3. Minimum Safe Manning document (LTL 75 stamp duty). Prior to the ship’s registration at the Register, every ship is a subject to primary inspection of the ship which is carried out in accordance with the order of the Minister of Transport and Communications of the Republic of Lithuania. The Administration shall not register the ship if: 1. after having verified on ship’s identity in accordance with the International Maritime Organisation number, it is concluded that the submitted data on ship’s identity is false. 2. there are marks of correctional or falsification nature on the submitted documents; 3. not all required documents have been submitted or the submitted documents are not in accordance with law requirements; 4. documents proving identification of the shipowner, the possessor of the ship (or their authorized person) are not submitted; 5. restriction of material rights to a ship limits the right of the shipowner or the right of the possessor of the ship to register the ship at the Register; In case of data modification at the Register, within 10 calendar days after the data has been changed, the shipowner must notify about it the Administration in writing and deliver the documents confirming these modifications. The ship is considered registered as soon as she receives ship’s unique identification code, the information concerning registration have been entered at the Register data base, and the certificate confirming registration has been issued. Stamp duty for registering the ship at the Register is LTL 400. Deletion of the ship from the Register The ship is a subject to deletion from the Register upon a request from a shipowner naming a reason for deletion from the Register. A shipowner requesting for deletion from the Register must submit the following documents to the Administration: 1. Reasoned request for deletion from the Register; 2. Certificate of Ships’ Registration at the Register, Permit to fly Lithuania’s State Flag, Minimum Safe Manning document. Upon receiving these documents, within 5 working days the Administration shall delete the ship from the Register issuing the Certificate of Deletion from the Register of Seagoing Ships of the Republic of Lithuania. Stamp duty for deletion from the Register of Seagoing Ships of the Republic of Lithuania is LTL 300, while stamp duty for issuing the Certificate of Deletion from the Register is LTL 75. Deletion of a mortgaged ship from the Register A mortgaged ship cannot be deleted from the Register until expiration of the ship mortgage or until submission of a notarised consent to such action from all mortgage creditors. In case the mortgaged ship must be deleted from the Register in other cases than the sale of the ship, the Mortgage Division of Klaip_da City District Court should be notified which is further obliged to notify all the mortgage creditors to enable them to take actions for protection of their interests. In such case, the mortgaged ship may not be deleted earlier than after 3 months following the notification of the mortgage creditors. This requirement may be omitted upon a notarised consent of all mortgage creditors to an earlier date. Re-registration of ships registered within European Community While registering ships at the Register, formerly being subject to Community ship registers, or while deleting ships from the Register, the Administration guarantees the implementation of 21 April 2004 Regulation (EC) No 789/2004 of the European Parliament and of the Council on the Transfer of Cargo and Passenger Ships between Registers within the Community. The charter of the ship registered at the Register by changing the state flag of Lithuania into a foreign state flag A shipowner seeking to charter a seagoing ship registered at the Register by changing the state flag of Lithuania into the foreign state flag, must submit the application to the Administration containing the information on the state flag the ship will fly as long as bareboat charter is in effect. The following documents should be enclosed in the application: 1. original or notarised copy of bareboat charter containing the name of the ship, the information about a shipowner and a charterer, date of conclusion and expiry date of the charter; 2. certificate issued by a registrar of the Register of Seagoing Ships of a foreign state confirming that the ship will be registered in this state, and that she will be allowed to fly that state’s flag as long as bareboat charter is in effect. As long as bareboat charter is in effect a Certificate of the Right to fly Lithuania’s State Flag is suspended, while the ship is registered at the Register of Seagoing Ships of a foreign state. The chartered ship is entitled to fly Lithuania’s state flag until she is registered at the Register of Seagoing Ships of the foreign state, but not longer than the period estimated in the Certificate of Suspension of the Permit to fly Lithuania’s State Flag. During the period estimated in this Certificate a ship has a right to fly Lithuania’s state flag which is equal to the period needed for the ship to reach the registry harbour of the foreign state safely, adding 15 (fifteen) calendar days. After temporary change of the Lithuanian flag into a foreign state flag, the indication of the registry harbour of the foreign state is required on the chartered ship. After the chartered ship (in case of bareboat charter) is registered at the Register of Seagoing Ships of the foreign state, a shipowner must submit the Administration with a copy of a Certificate of ship’s registration at the Register of Seagoing Ships of the foreign state within 30 (thirty) calendar days. Upon expiration or termination of bareboat charter, a shipowner is obliged to submit a written notification to the Administration, and to delete the ship from the Register of Seagoing Ships of the foreign state. After deletion of the ship from the Register of Seagoing Ships of the foreign state, the renewal of a Permit of the Right to fly Lithuania’s State Flag should follow. A shipowner together with the application to renew validity of such permit is obliged to provide the Administration with a copy and within 14 calendar days with original certificate proving that the ship is deleted from the Register of Seagoing Ships of the foreign state, including copies of the Permission to use the Ship’s Radio Station and copies of Certificate of Sea Class. The temporary registration of the ship at the Register by changing the flag of the chartered ship into the flag of the Republic of Lithuania The ship registered at the Register of Seagoing Ships of the foreign state enjoys the right to a temporary registration at the Register given that a bareboat charterer is either a citizen of the Republic of Lithuania or the legal entity registered in the Republic of Lithuania. On presentation of the documents enumerated in Articles 5, 7-10 of Registration documents by charterer of the ship, upon the request of the latter the Administration issues the Certificate of Ship’s Registration at the Register, including the Permit to fly Lithuania’s State Flag as long as bareboat charter is in effect. Charterer of the ship seeking for the temporary registration of the chartered ship at the Register besides the documents enumerated in Articles 1, 5-11 of Registration documents is also obliged to submit the following additional documents: 1. notarised copy of the Certificate of Registration of Legal Entity (in case the charterer of the ship is legal entity registered in the Republic of Lithuania) or notarised copy of identification document (in case the charterer is a citizen of the Republic of Lithuania); 2. original or notarised copy of bareboat charter containing the name of the ship, the information about a shipowner and a charterer, date of conclusion and expiry date of the charter; 3. original certificate issued by a registrar of the Register of Seagoing Ships of the foreign state indicating a shipowner and a holder of guarantee, deposit, mortgage or encumbrances related to the ship; 4. original document from a registrar of the Register of Seagoing Ships of the foreign state confirming the registration of the ship in this state, and the suspension of the Permit to fly the Flag of that State as long as bareboat charter is in effect; 5. Original approval from the owner of chartered ship concerning temporary registration of the ship at the Register as long as bareboat charter is in effect. As long as bareboat charter is in effect the ship has a right to fly only Lithuania’s state flag. The chartered ship is deleted from the Register when: 1. there is a reasoned request from charterer of the ship (or his authorized person) for deletion from the Register; 2. the Administration receives an order from a registrar of the Register of Seagoing Ships in the foreign state to delete the ship from the Register, or an authorised document from a registrar regarding deletion of the ship from the Register of Seagoing Ships of the foreign state. Upon deletion of the chartered ship from the Register, she loses the right to fly Lithuania’s state flag. Consequently, charterer of the ship is obliged to return the documents certifying temporary registration of the ship to the Administration within 10 calendar days. Upon deletion of the chartered ship, the Administration issues the Certificate of Deletion from the Register of Seagoing Ships of the Republic of Lithuania. Stamp duty for issuing the Certificate of deletion from the Register is LTL 75. Please note that the information mentioned above is only of general nature and it should not be relied on as a final legal opinion, consultation or advice. On specific matters, please apply for legal consultation to Mrs Vilija Vaitkut_ Pavan, attorney at the law firm Lideika, Petrauskas, Vali_nas ir partneriai LAWIN, or other lawyers of the Dispute Resolution and Transport practice group of the firm. 1 Under Articles 2, 4-11, the shipowner must deliver the indicated documents within 30 calendar days since he submitted an application to register the ship. 2 The shipowner has a right to submit the copy of this document together with a request to register the ship by fax or other means of communication on condition that the original document was submitted to the Administration within 14 calendar days from the day of ship’s registration.