India urged to ratify CLC
India urged to ratify CLC
INDIA has been urged to become a signatory to the 1992 Civil Liability Convention and the associated Fund Convention, which set out the structure and conditions for dealing with those adversely affected by oil spills from tankers.
Dr Chao Wu, environmental law adviser for the UK P&I Club at Thomas Miller (Americas) Inc, told leading members of the shipping community in Mumbai recently that it is very much in the best interests of potential Indian claimants to see India signing the conventions, and that it would also be best for Indian oil receivers because the obligation to contribute to the 1971 International Oil Pollution Compensation Fund, to which India currently subscribes, will become heavier as fewer countries remain in that fund.
Dr Chao Wu said that, once India signed up to the 1992 convention, claimants would benefit from four times the country's present liability and a compensation fund more than double the present size.
IMO approves new Marpol annex
SHIPOWNERS and operators face new restrictions on air emissions following the approval by IMO of Annex V1 of the International Convention for the Prevention of Pollution from Ships (1973). The new rules, once ratified, will bind parties to the Marpol convention. Among other things, they will:
- limit emissions of sulphur dioxide and nitrogen oxide from ship exhausts
- prohibit deliberate emissions of ozone-depleting substances
- cap the sulphur content of fuel oil used on ships
In a separate but related development, IMO's marine environment and protection committee has approved a draft resolution on the control and management of harmful aquatic organisms in ship ballast. The programme of the MEPC ballast water working group calls for preparation of draft regulations on ballast water management, anticipating their adoption as a Marpol annex by 2000.
(Winthrop, Stimson, Putnam & Roberts)
Changes in ICC arbitration rules
THE ICC has approved a number of changes to its arbitration rules which will apply to all arbitrations begun after January 1, 1998, unless the parties specify their preference for the rules in force on the date of their arbitration agreement.
The changes embraced by the new rules include modification of the terms of reference procedure, a new rule for multiple parties, powers to grant interim relief, location of the arbitration and applicability of rules of law.
(Holmes Hardingham)
California extends bunker tax exemption
THE California state assembly has approved the continued tax exemption for bunker fuel purchases. When the 8.25 per cent sales tax was passed in 1991, bunker fuel sales tumbled by almost 75 per cent. An exemption for bunkers was enacted in 1993. The new exemption came into effect on January 1 this year, and will run for five years.
(Eckert Seamans Cherin & Mellott)
Progress continues on new arrest convention
A United Nations/IMO diplomatic conference is scheduled to meet in Geneva in the fourth quarter of 1998 to review and adopt the final text of a new international convention on the arrest of ships. A draft convention will be circulated for comment to all members of UNCTAD and IMO, as well as the non-governmental organisations with consultative status at those two organisations. It is hoped that the final outcome will take into account the concerns and interests of the international shipping community and achieve its objectives of promoting international trade and transport.
New Gibraltar legislation widens register base
THE Gibraltar ship register has reopened for business as a so-called Category 1 Red Ensign Group Register. The register had been negotiating with the UK government for some months about the introduction of new regulations in order to meet specified standards.
Category 1 is the highest status that can be accorded to a ship register within the Red Ensign Group of UK and UK dependency registers, which includes Bermuda, the Cayman Islands and the Isle of Man.
Changes in Gibraltar legislation now permit a wider range of individuals and corporate bodies to be qualified as eligible to own a registerable ship. Ship manning requirements - which in the past were often regarded as a major obstacle to an owner agreeing to flag into the Red Ensign group - have been modified, and non-EC nationals can obtain certificates of equivalent competency, allowing them to serve on all but a few types of ship registered in Gibraltar.
Greece increases pollution fines
THE maximum limits of administrative fines that can be imposed by the Greek authorities for polluting the marine environment and for breaching related legislation have recently been increased as follows:
- up to 250 million drachma (about $865,000) imposed by the minister of merchant marine in cases of serious pollution incidents
- up to five million drachma ($17,500) imposed by the local coastguard authorities in respect of other pollution incidents.
- up to two million drachma ($7,000) per day in cases where polluting continues after the expiry of any period prescribed for reinstatement
- up to five million drachma in respect of breaches of Marpol and related legislation or OPRC 1990 and related legislation.
Prior to the latest increases, the last time fines were raised was in 1990.
(West of England P&I Club).
New California surplus lines legislation
CALIFORNIA has passed into state law a new bill permitting non-admitted companies to write certain marine, aviation and transportation (MAT) insurance without the need to be placed on the state's list of eligible surplus lines insurers.
The new legislation changes the existing law in California by providing that the placement of MAT business by a special lines surplus lines broker is not subject to a requirement that the insurer establishes its financial stability with the California insurance commissioner and meets related requirements. The bill also extends this exemption to include spacecraft insurance.
(Kroll & Tract)
CMI and UNCITRAL examine carriage issues
THE CMI is to broaden the scope of its efforts to create a uniform liability regime for the carriage of goods by sea to work with UNCITRAL on fundamental issues of transport law. These issues include the function of bills of lading and waybills, electronic transmission of information, the relationship between contracts of carriage and sale contracts, and the bankability of transport documents and ancillary products.
(BIMCO)