HONG KONG SAR, CHINA Law and Practice Contributed by: Christopher Andrew Potts, Crump & Co
conditions. Where “clear grounds” exist, the MD may conduct detailed inspections, detain substandard ships and initiate prosecutions. Failure to comply with detention orders or statutory requirements may result in fines and imprisonment. Marine Casualties and Incidents Marine accidents and casualties are investigated by the Marine Accident Investigation Section (MAIS) of the MD, in accordance with domestic legislation and the IMO Casualty Investigation Code. Mandatory reporting applies to collisions, groundings, pollution incidents, loss of life, serious injury and dangerous occurrences involving foreign vessels in Hong Kong waters, local vessels and Hong Kong-registered ships worldwide (primarily under Chapter 313 and the Mer - chant Shipping (Safety) Ordinance (Chapter 369)). The Director of Marine may conduct a preliminary inquiry, and in serious cases the chief executive may order a marine court, which has powers including sus - pension or cancellation of seafarers’ certificates. Pollution, Grounding and Wreck Removal Under MARPOL-related legislation, pollution incidents must be reported promptly, and enforcement action may follow. Where a vessel is grounded or consti - tutes a hazard to navigation, the Director of Marine may direct removal, take possession of, or remove or destroy a wreck, with costs recoverable from the owner as a civil debt. 1.3 Domestic Legislation Applicable to Ship Registration The Merchant Shipping (Registration) Ordinance (Chapter 415) establishes the complete system for registering ships, setting out the eligibility criteria, the registration process and the legal effects of registra - tion. The Merchant Shipping (Registration) Regulations support the aforementioned ordinance by providing the necessary procedural specifics for applications, surveys and documentation. Registration is influenced by broader maritime laws, such as the Merchant Ship - ping (Safety) Ordinance (Chapter 369), as a vessel must meet prescribed safety standards before it can be registered.
The Hong Kong Shipping Register, administered by the MD, is responsible for administering the domestic registration of vessels. The Director of Marine serves as the statutory Registrar of Ships, holding the ulti - mate authority over decisions on registration, the issu - ance of certificates and the maintenance of the official register. Daily operational responsibilities are carried out by the dedicated Shipping Registry division within the MD. 1.4 Requirements for Ownership of Vessels Vessels registered in Hong Kong are required to be owned primarily by qualified persons, namely: • Hong Kong identity card (HKID) holders who are ordinarily resident; • Hong Kong-incorporated companies; and • non-Hong Kong companies registered in Hong Kong. Foreign individuals or companies can own vessels registered in Hong Kong, but they must either register as a non-Hong Kong company with the Companies Registry or ensure that a majority interest is owned by one or more qualified persons. Under Demise Charter registration, vessels owned by foreign owners can be registered in Hong Kong for the duration of the demise charter only if the demise charterer is a qualified person. A representative person must be appointed for each Hong Kong-registered ship. The person must be either a qualified person and the owner or part-owner of the ship, or a Hong Kong-incorporated company engag - ing in the business of ship management/agency. There is no specific provision regarding the registra - tion of a vessel under construction. However, since documents like a builder’s certificate are required for registration, which will not normally be released unless construction is finished, it is practically impossible to meet the registration requirements. 1.5 Temporary Registration of Vessels Temporary/Provisional Registration Provisional registration is available in Hong Kong under the Merchant Shipping (Registration) Ordi -
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