Malta Bareboat Charters

What is a Bareboat Charter?

A bareboat charter is a charter whereby the Charterer acquires the ‘bare’ boat for a fixed period of time. Therefore, he must provide his own master and crew to sail her during such period of time. The Charterer also acquires the right to temporarily register the ship under an alternative flag (referred to as the ‘Bareboat Charter Registry’), whilst it retains its original flag (referred to as the ‘Underlying Registry’) for the purposes of protecting the owner’s rights.

Maltese law provides for both the Bareboat Charter Registration of a foreign ship under the Maltese flag (referred to as a Bareboat Charter-In Registration), as well as for the Bareboat Charter Registration of a Maltese ship under a foreign flag (referred to as a Bareboat Charter-Out Registration).

Bareboat Charter-In Registration

Eligibility for Registration

In order for a foreign ship to be eligible for Bareboat Charter Registration in Malta, it must satisfy certain pre-requirements. Firstly, it must satisfy the pre-requisites relating to ownership and vessel age applicable to standard ship registrations (kindly refer to our section on Standard Ship Registration for further information).

Furthermore, the following pre-requisites must be met:

(i) The Charterer must be a person eligible to own a Maltese ship;

(ii) The Ship is not a Maltese ship;

(iii) The Ship is registered in a Compatible Registry;

(iv) The Ship is not registered in another Bareboat Charter Registry.

Registration Procedure

The following must be submitted to the Registrar:

(a) An application for Bareboat Charter registry made by the charterer or his authorised representative.

(b) A Declaration of Bareboat Chater made by the charterer;

(c) A copy of the Chater Agreement;

(d) Transcript of the underlying registration of the ship;

(e) Payment of the Prescribed Fee.

(f) International Tonnage Certificate.

(g) Evidence of Seaworthiness.

Consent in writing for the ship to be Bareboat Charter registered in Malta must also be provided from:

(a) The authorities of the underlying registry;

(b) The owners of the ship;

(c) All registered mortgagees.

Registration

Upon all conditions being met, the Registrar will issue a Provisional Certificate of Bareboat Charter Registry or a Certificate of Bareboat Charter Registry, as the case may be.

If the ship is not in possession of all valid certificates required by international conventions ratified by the Government of Malta and such other certificates as prescribed by the Regulations, the Registrar will issue a Non-Operational Certificate of Bareboat Chater Registry.

Obligations of Charterer Following Registration

Upon receiving a Certificate of Bareboat Charter Registry, all documents issued by the underlying registry shall be surrendered to the underlying registry.

The Charterer shall also deliver a declaration that he has surrendered such documents to the Maltese Registrar.

Duration and Renewal of Registration

The Bareboat Charter Registration shall expire upon the shorter of (i) the termination of the Bareboat Charter, (ii) the expiration of the underlying registration or (iii) two years from the date of Bareboat Charter Registration.

The Bareboat Charter Registration can also be renewed for further periods, provided that the Charter produces a transcript of the underlying registry and the consent of the underlying registry, owners and mortgagees.

Upon renewal, the Registrar will issue a Renewal Certificate.

Legal Matters

Upon Bareboat Charter registration in Malta, the ship becomes subject to the jurisdiction and control of Malta, and shall comply with all the laws applicable to Maltese ships.

However, matters relating to title (ownership), transfers and mortgages over the ship shall remain regulated by the law of the underlying registry.

Bareboat Charter-Out Registration

Eligibility

The Merchant Shipping Act also allows the possibility for a Maltese ship to be bareboat charter registered in a foreign registry if:

(a) The Registrar-General gives his consent in writing; and

(b) The Bareboat Charter Registry is a compatible registry.

Procedure

The following documents must be submitted to the Registrar-General prior to consent being granted:

(a) An application for Bareboat Charter Registration in a foreign registry;

(b) Consent in writing of all registered mortgagees;

(c) Written undertaking by the owners to surrender the Maltese Certificate of Registry within 30 days from the bareboat charter registry;

(d) Written undertaking by the charterer that the Maltese flag will not be hoisted during the period of bareboat charter registration;

(e) A copy of the Bareboat Charter Agreement.

Duration of Validity and Renewals

The Registrar-General’s consent shall remain valid for the shorter of (i) the duration of the bareboat charter agreement, (ii) the expiration of the Maltese registration of the ship; (iii) a period of 2 years.

The Registrar-General may renew the validity of his consent for a further period upon the request of the owner or his authorised agent.

Obligations of Owner Upon Bareboat-Out Charter Registration

Upon registration in a foreign registry, the owner shall inform the Registrar of such registration.

Within 15 days from such registration, the owners shall deliver a declaration to the Registrar that the name of the foreign home port has been marked on the stern of the ship in lieu of the name Valletta.

Within 30 days from such registration, the owner shall also surrender the Maltese Certificate of Registry and deliver an extract of the foreign bareboat charter registration to the Registrar.

Notwithstanding the bareboat-out charter registration, the Maltese ship shall continue to be subject to the payment of all annual fees in Malta. Furthermore, all matters relating to title (ownership), transfers, mortgages and encumbrances continue to be regulated by Maltese law.