BELGIUM Law and Practice Contributed by: André Kegels, Kegels Advocaten
7.3 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards The 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards is appli - cable in Belgium. Domestic law has incorporated the rules on arbitration into the Judicial Code. However, the enforceability of an award may be refused by a Belgian court if the award has been obtained by disregarding the principles as to jurisdiction and arbi - tration clauses outlined in 7.1 Enforcement of Law and Jurisdiction Clauses Stated in Bills of Lading and 7.2 Enforcement of Law and Arbitration Clauses Incorporated Into a Bill of Lading . In the M/V African Reefer case, the maritime chamber of the Antwerp Court of Appeal decided that an English award was to be disregarded and could not be declared enforceable because it conflicted with the jurisdiction provisions. This decision, rendered under the previous Maritime Code, remains relevant under the NBMC. 7.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction If the claim that is subject to a foreign arbitration and/ or jurisdiction allows an arrest of the vessel, the fact that the merits of the case are to be heard abroad is no hindrance. The arrest is a protective measure. If the applicable law or agreements between the par - ties refer the case to another jurisdiction, an arrest is still possible. The security obtained by the arrest can be executed only once a foreign decision or award condemns the creditor. 7.5 Domestic Arbitration Institutes There is no arbitration institute that deals solely with maritime matters. Such matters can be arbitrated before the Belgian Centre for Arbitration and Media - tion (CEPANI), which also deals with other, mostly commercial, matters. Within the CEPANI there are specialised maritime arbitrators. Belgium has a very vibrant marine insurance market. Most actors in the marine insurance market prefer local arbitration organised on an ad hoc basis.
7.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses The authority of the Belgian court should be contested as a first defence based on a foreign jurisdiction or arbitration clause. Unless the clause is invalid or not opposable to the claimant, the court will respect it and declare itself to be without authority. 8. Ship-Owners’ Income Tax Relief 8.1 Exemptions or Tax Reliefs on the Income of Ship-Owners’ Companies The Principles Under Belgian law, both the tonnage tax regime and the accelerated depreciation regime are available. They are alternatives and cannot be used together. Careful consideration must be made as to which one needs to be applied and when. Also, reinvested capital gains can be exempt from taxes. In addition, a vessel that comes into Belgian possession for the first time can, under certain condi - tions, deduct 30% of the purchase price. Again, these are alternatives to the tonnage tax and cannot be used together with that tonnage tax. Tonnage Tax – General Within the EU, the guidelines to be respected by the individual member states are set by the EU Com - mission in its “Guidelines on State Aid to Maritime Transport”. In November 2017, the EU Commission approved the Belgian support measures for maritime transport for another ten years. A few changes to the already existing Belgian rules had to be made to com - ply with those guidelines. Interestingly, dividends paid by Belgian tonnage tax companies comply with the subject-to-tax condition. Tonnage Tax – for Ships A tonnage tax can be applied to shipping companies, core revenues from shipping activities and certain ancillary revenues that are closely connected to ship - ping activities (which are now capped at a maximum of 50% of a ship’s operating revenues).
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