Venezuela opens its doors

Venezuela opens its doors

VENEZUELA, a country with a traditionally restrictive ship registry, has opened its doors to foreign investors in the maritime sector.

The Venezuelan congress has recently enacted legislation in the form of a new navigation law and a revised law for the protection of the merchant marine, both with much more flexible rules in respect of ship registration and foreign investment participation in shipping companies and ship agency.

Highlights of the new legislation include:

• Vessels owned by foreign corporations can now be registered under the Venezuela flag
• Foreign-flag vessels under bareboat charter to foreign corporations can now be registered under the Venezuela flag
• The sale of Venezuelan-flag vessels to foreign interests no longer has to be authorised by the ministry of transport and communications
• Vessels to be registered under the Venezuela flag are no longer subject to the 16.5 per cent general wholesale and luxury tax applicable to other imports
• Foreign investment of up to fifty per cent is allowed in the capital structure of ship agencies
• Up to fifty per cent of crew on Venezuela-flag ships may now be foreign nationals
• There is now preferential treatment in respect of registration fees for vessels

Venezuela-flag vessels registered under these conditions can take part in domestic trade, and can take advantage of cargo transportation preference agreements. (Clyde & Co)

US shipping reform act passed into law

THE Ocean Shipping Reform Act of 1998 has been signed into law in the US. The new law extensively amends the 1984 Shipping Act by eliminating the filing of tariffs with the Federal Maritime Commission; permitting carriers to maintain terms of service contracts on a confidential basis; requiring carriers to disclose certain service contract information to labour groups; allowing rate and service negotiations for inland transportation by groups of carriers; and reducing the notice requirement for independent action from ten to five business days.

In addition, the new legislation prohibits unfair pricing of liner services by foreign carriers and revises the provision governing controlled carriers. Antitrust immunity for groups of carriers is continued, and licensing and bonding requirements for intermediaries such as forwarders and nvoccs are imposed by the new law. (Eckert Seamans Cherin & Mellott)

Australia votes in carriers liability reform

THE final step in the domestic implementation in Australia of the new marine cargo liability regime - which imposes greater liability on carriers for damage, loss and delay to seaborne cargoes - has now come into effect with the implementation of the Carriage of Goods by Sea Regulations 1998.

The new regulations are made pursuant to the Carriage of Goods by Sea Amendment Act 1997. Together, the new act and regulations establish a regime which aims to provide increased protection to shippers while preserving the Hague-Visby Rules as its basis. (Phillips Fox)

New airline carrier liability limits

FOLLOWING its ratification by Estonia, the 1975 Montreal Protocol to the Civil Aviation (Carrier's Liability) Act 1959 has entered into force. This establishes new airline carrier liability limits of 17 Special Drawing Rights per kilogram of cargo carried by air between any of the thirty nations which have ratified the protocol.

Ratification of the protocol resolves the uncertainty surrounding the conversion of the Warsaw Convention's gold franc standard for cargo liability limits into national currencies.

IMO debates compulsory insurance

A DRAFT instrument based on the Athens Convention was recently presented to the IMO Legal Committee. It seeks to introduce an insurance mechanism into the current text of the convention and to avoid double insurance / compensation.

A proposal by the CMI to a introduce a passenger accident insurance scheme as an alternative to compulsory financial security was discussed. Such a scheme would make the carrier an intermediary between the passenger and the insurer in arranging insurance. The IMO Legal Committee therefore decided that a system offering passenger accident insurance as an option or supplement to the existing liability regime should be developed instead.

Ukraine insurance initiative

A NEW resolution has been initiated in Ukraine which obliges most visitors to purchase an insurance policy for the payment of emergency medical aid. Crew and passengers on foreign-flag ships arriving at Ukrainian ports will have to buy the insurance plan before being allowed ashore. (North of England P&I Club)