Commercial Yachts of 24 metres in length and more can be registered in the Isle of Man. Any Commercial Yacht proposed for registry must be of 24 metres in length or more and must be classed with one of the Classification Societies recognised by the Isle of Man. Vessels must also comply with the UK Mega Yacht Code.
Applicable Legislation
- The Merchant Shipping (Registration) Act 1991
- The Merchant Shipping (Registration) Regulations 1996
- The Merchant Shipping (Yacht in Commercial Use) Order 2002
Registry Requirements
Commercial Yachts are registered in exactly the same manner, and are subject to the same conditions as Merchant Ships. Each vessel must be seen by an Isle of Man surveyor prior to registry. Vessels are registered if the surveyor is satisfied that the vessel complies with the Code and is a suitable for registry in the Isle of Man. In exactly the same way as with Merchant Ships, the owner must be a "qualified owner", with a representative present in the Isle of Man.
After Registry
Commercial Yachts are automatically entered in the Alternative Fees Scheme on registry and will be visited by an Isle of Man surveyor at 30 month intervals. Each vessel will be thoroughly inspected and the attending surveyor will undertake any necessary surveys that are due. Those subject to the ISM Code (over 500 GT) will receive an ISM audit and vessels subject to the ISPS Code will receive a Security verification audit.
The Isle of Man “Alternative Fees” Scheme
This is an arrangement which allows owners and managers to budget accurately for survey and audit costs. The Ship Registry believes that predictable and reasonable costs are a crucial advantage for owners and managers.
Owners and managers who opt for this scheme pay a fixed monthly subscription to the Ship Registry and in return the Ship Registry appoints the ship's Classification Society to undertake routine statutory surveys while the Ship Registry undertakes to attend and complete ISM audits, ILO inspections, ISPS vertifications and general inspections at the statutory intervals. The attendance of the Isle of Man surveyor for these visits is at no further cost for the owner or manager.
Payment may be made either monthly, quarterly or annually in advance with the current fee level set at £180 per month per vessel.
Entry to the scheme can be immediate for a ship transferring to the Isle of Man flag (provided that she has a full term SMC) or from the date of the next survey by an Isle of Man surveyor for existing Isle of Man ships.
Once a ship is entered in the scheme she will receive a visit by an Isle of Man surveyor every 2 ½ years at no additional cost whatsoever, either for survey time, administrative fees, travel or accommodation. The visit will take place at a time and place agreed with the owner, wherever the ship may be. The Isle of Man surveyor will travel with the ship for several days and while he is there will:
- Complete an ISM audit (either renewal or intermediate as necessary)
- Complete an ILO178 inspection of crew welfare and working conditions and issue a certificate
- Complete a general inspection
- Complete a security verification audit and issue or renew the ships International Security Certificate
The attending surveyor will also take the time to brief the ship's staff on current and forthcoming changes and provide advice on any aspects of the regulatory regime that are helpful.
For every ship which is participating in the scheme the Ship Registry will appoint the ship's Classification Society to conduct all statutory surveys. These surveys may then be arranged between the owner and Class to their mutual benefit without reference to the Ship Registry.
While a ship in the scheme, new certificates, exemptions, certificate extensions and similar ship’s documentation will be issued at no further charge. STCW endorsement certificates recognising foreign officer’s certificates are not included in the scheme.
The Ship Registry undertakes to maintain the standard fee unchanged as long as possible, but where international air travel costs, or other costs increase, a change to the monthly fee may become necessary. Any changes will be notified well in advance. The scheme remains optional, however, and an owner may leave the scheme at any time although fees already paid are not refundable.
This scheme is intended to be a flexible one with real benefits for owners and managers as well as for the crews and for the Ship Registry. The Ship Registry feel it is the “Right Way" to approach ship survey and inspection.
If a ship's ISM system changes, either at registry or at a later date such that a new Document of Compliance (DOC) is required and an interim SMC has to be issued, the costs of the audit for the ISM are additional to the scheme.