Non-Citizens Now Eligible For Coasting-Trade Licences
Introduction
1. The new Marine Act (Amendment) Promulgation 2009 came into force on 19 February 2009. The Promulgation amends the Marine Act 1986 by:
- allowing non-Fiji citizens who own or charter Fiji-registered vessels to obtain coasting-trade licences and
- extending the maximum duration of a coasting-trade licence from one year to five years.
2. The changes are important to non-Fiji citizens and Fiji companies owned by non-Fiji citizens who operate vessels that carry goods and/or passengers as part of their commercial activities, and to their financiers and insurers.
Background
3. Subject to specific exceptions (such as a fishing vessel, a takia, a pleasure craft or a prescribed vessel), the Marine Act requires the owner or charterer of a vessel which carries goods and/or passengers in trade (essentially as part of any commercial activity) to hold a coasting-trade licence.
4. Previously coasting-trade licences could only be granted to “Fiji persons”: effectively Fiji citizens or companies which are majority Fiji citizen owned (i.e. 51%) and operated in Fiji by Fiji citizens resident in Fiji.
5. Foreign-owned tourism ventures often encountered problems with licensing of vessels used for cruises and the ferrying of passengers and luggage. The relaxation is believed to be a response to submissions made on behalf of such operators.
Effect of the Promulgation
6. The effect of the Promulgation is that coasting-trade licences can be granted to:
(a) owners/operators: Fiji citizens and Fiji-incorporated companies (even if foreign-owned) who own and operate registered vessels
(b) charterers: any person, regardless of incorporation or citizenship, who charters a registered vessel.
However foreign companies and non-Fiji citizens may still not own registered vessels unless their vessel is engaged in a qualifying shipping service or a qualifying route as designated by the Minister of Transport.
7. The extension of the term of coasting-trade licences also recognises the need for operators to have greater regulatory certainty for marine businesses in which they invest.
8. For further information, please contact:
Jon Apted
Partner
Direct Dial +679 322 1812
Email Jon
Varun Shandil
Senior Associate
Direct Dial +679 322 1813
Email Varun
Disclaimer
The information and opinions in this Legal Alert are for general information purposes only. They are not intended as specific legal or other professional advice and should not be relied upon or treated as a substitute for specific advice. Munro Leys can accept no responsibility for any loss arising from reliance on the general information contained in this Legal Alert.