Administrative and Legal Framework
Maritime Administration
The Department of Merchant Shipping was established and started functioning as a distinct entity in the Ministry of Communications and Works, in 1977. The Department’s activities include: registration of ships, administration and enforcement of the merchant shipping legislation, control of ships and enforcement of international conventions, investigation of marine casualties, resolving labour disputes on board Cyprus ships, and training and certification of seafarers.
The Department of Merchant Shipping employs marine surveyors, lawyers, economists and IT specialists. At present its staff comprises 34 Marine Surveyors, 12 Maritime Affairs Officers and 10 Maritime Affairs Assistants whereas 14 new post for Marine Surveyor and 4 new posts for Maritime Affairs Officers are in the process of being filled.
The full computerisation of the DMS (‘MARCOS’ project), is at the final stage of implementation while parallel work is carried out towards quality assurance certification according to the ISO 9001: 2000 standard. The DMS Maritime Training and Certification Division, responsible for the implementation of the STCW Convention, obtained already the ISO certification in February 2004.
Maritime offices are established in Piraeus, Hamburg, Rotterdam, London, New York and Brussels in order to extend the services provided by the Department of Merchant Shipping and to strengthen the presence of Cyprus abroad.
A global network of inspectors of Cyprus ships is
established by the Government of the Republic of Cyprus. The aim of the
programme is the verification and enforcement of compliance of Cyprus ships with
the applicable provisions of the national and international maritime legislation
relating to safety, pollution prevention, the qualifications of the seafarers
and the living and working conditions on board Cyprus ships. Thirty five
inspectors have so far been appointed in twenty five ports worldwide (Appendix
2).
These Flag State inspections are carried out at no cost to the shipowners.
The safety standards of the Cyprus fleet have been improved. The number of casualties and the rate of Port State Control detentions have been dramatically reduced. This is evident by the removal of Cyprus from the Black List and its classification into the White List of the Paris and the Tokyo Memoranda of Understanding on Port State Control (Paris MOU and Tokyo MOU).
The International Ship and Port Security Code (ISPS Code) has been adopted and is being implemented. Already all ships under the Cyprus flag as well as all port facilities in Cyprus have been duly certified as complying with the requirements of this code.
Instructions have been issued by the Department of Merchant Shipping on how to proceed in order to achieve compliance in time and include measures to enhance maritime security.
Legal Framework
The law governing companies is The Companies Law, Chapter 113 of the Statute Laws of Cyprus, as amended. This Law is modelled on the United Kingdom Companies Act, 1948.
Cyprus has ratified the
major international conventions on maritime safety and security, prevention of
pollution of the sea, training, certification and watchkeeping of seafarers and
limitation of shipowners’ civil liability and conventions on maritime labour.
Appendix 3 provides a list of the treaties to which the Republic is a
contracting party and for which the International Maritime Organization and the
International Labour Organization are the depositories. Cyprus is also party to
the Convention on the High Seas, 1958 and the United
Nations Convention on the Law of the Sea, 1982.
Cyprus has also concluded a number of bilateral agreements on the avoidance of double taxation and on co-operation in the field of merchant shipping (see Chapter 7 International Relations) which provide, inter alia, fiscal advantages and incentives for effective tax planning and advantages in the engagement of foreign seafarers on board Cyprus ships.