MALTA Law and Practice Contributed by: Ann Fenech, Adrian Attard, Lara Saguna Axiaq and Martina Farrugia, Fenech & Fenech Advocates
(MARPOL) by means of Subsidiary Legislation 545.18, titled the Quality of Fuels Regulations (the “Regula - tions”). The Regulations regulate the sulphur content of marine fuel and the capping of that sulphur content (mass by mass (m/m)) by all ships, irrespective of flag, when calling in Maltese ports and traversing Maltese internal waters, territorial waters and Malta’s exclusive economic zone. The Regulator for Energy and Water Services (REWS) established by the Regulator for Energy and Water Services Act is the competent authority responsible for the enforcement of sulphur-content limitation in Malta. The Authority for Transport in Malta is also empowered to carry out certain enforcement proce - dures. Since 1 January 2020, the use of marine fuels with a sulphur content exceeding 0.1% m/m by ships at berth in ports in Malta is prohibited. This prohibition will be extended to the entirety of Maltese waters in 2025, when the Mediterranean basin will be classified as a MARPOL Emission Control Area. Until implemen - tation of these new regulations, in all other areas fall - ing outside Maltese ports, but within the Maltese ter - ritorial sea, internal waters, exclusive economic zone and any pollution-control zones, the sulphur content of marine fuels (bar a few exceptions) cannot exceed 0.5% m/m. As part of the enforcement of sulphur-content limita - tion, the REWS has an inspection and monitoring pro - gramme in place for vessels which operate for national maritime transport, and for larger vessels which fall under the MARPOL Convention and travel to Malta from other EU and non-EU ports. Monitoring as part of the programme (which is in line with the detailed requirements as defined by Commission Implement - ing Decision (CID) EU 2015/253) includes analysing the sulphur content in the samples lifted and the vet - ting of documents related to fuel purchase, storage and use by the vessel. The latest available data shows that, during 2020, the REWS carried out inspections of documents on 107 vessels and collected 32 samples as part of its moni - toring requirements. Through these inspections, the REWS identified two vessels that were burning marine
gasoil (MGO), which had an excess of 0.1% sulphur content while at berth. In both cases, the REWS per - formed an investigation and fines were issued accord - ing to the established REWS Decision No 14/2019. By Decision No 5 of 26 October 2021, the REWS established certain fines applicable to any person in charge of a vessel in the event of absent MARPOL samples and/or absent documentation, with respect to the marine fuel of the vessel. 9.3 Trade Sanctions All United Nations (UN) sanctions, in addition to EU sanctions, are directly applicable in Malta and are binding in their entirety as part of domestic law, pur - suant to the provisions of the National Interest (Ena - bling Powers) Act, Chapter 365 of the Laws of Malta. Conversely, Office of Foreign Assets Control (OFAC) sanctions are not directly enforceable in Malta, as observed by the Civil Court (First Hall) in its judgment in World Water Fisheries Limited v Bank of Valletta plc , delivered on 29 September 2020. Nevertheless, most local authorities and regulators do recommend that economic operators, as well as the public in general, exercise caution in this regard. Undeniably, the international sanctions landscape has changed significantly in the last few years. The war in Ukraine has brought with it unprecedented waves of new domestic, regional and international sanctions. As a member state of the EU, Malta has implemented the nine sanctions packages adopted by the EU in response to Russia’s invasion of Ukraine. These sanc - tions have naturally had a significant effect on trade in general and, in particular, in the shipping and energy sectors. The Sanctions Monitoring Board is the competent local authority responsible for the implementation of all UN and EU sanctions in the Republic of Mal - ta. The Board is composed of representatives from various relevant government ministries, governmental authorities, regulators and enforcement bodies. In the exercise of its functions, the Board is empowered to refer to other relevant authorities (including the Malta Police Force) for action, assistance or information. In practice, Maltese authorities do tend to co-operate extensively when enforcing applicable trade sanc -
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