17th February 2024 – 23rd February 2024
- LOCAL NEWS
1. Abolishment of Annual Levy – Cyprus Companies
On 21 February 2024, the President of the Republic of Cyprus, announced the decision of the Council of Ministers to abolish the annual levy of Euro 350, which was payable by all companies registered in Cyprus to the Registrar of Companies. The payment of the annual levy has been a statutory obligation for all companies registered in Cyprus since 2011.
This decision aims to further support and offer additional incentives to the island’s businesses and shall be applicable from 2024 and onwards.
Related Articles:
PhileNews 21/02 - Cabinet abolishes €350 annual company fee
PIO 21/02 - Abolishment of Annual Levy
- INTERNATIONAL NEWS
2. ETS: latest information on the transposition, offshore vessels and MOHA
On the 20th February 2024 the ECSA Secretariat had a Meeting with DG CLIMA to discuss the EU ETS implementation and in particular:
A. The transposition at the national level of the provision on the pass-through of the cost
ECSA pointed out that, while many Member States still have to transpose the directive, it would be useful to understand how they transpose this provision.
B. Innovation Fund
DG CLIMA repeated its commitment to the earmarking of the allowances to the maritime sector and encouraged maritime projects to apply to the Innovation Fund 2023 call.
C. The inclusion of offshore vessels in the EU ETS
During the meeting, DG CLIMA confirmed to ECSA that a guidance document on offshore vessels will be prepared. DG CLIMA wants to ensure that the level playing field remains between the companies operating from the EU and from third countries.
D. The Maritime Operator Holding Account
ECSA Members requested the following two clarifications on the Maritime Operator Holding Account (MOHA) under the ETS:
i. As many EU Member States have not transposed the EU ETS Directive into national law yet, does the deadline of 40 days for companies on the list of administering authorities to open a MOHA apply?
DG CLIMA indicated that the MOHA account can be opened without the transposition of the EU ETS directive in national law. Companies have 40 days from the publication of the related implementing act to request the administering authority to open a MOHA. Afterwards, the authority has 20 days to open it.
ii. The possibility for the shipowner to authorise the bareboat charterer, via a contract, to become the responsible entity for MRV and ETS compliance purposes.
Under the EU ETS directive and its secondary legislation, “the entity responsible for compliance in respect of the emissions of a given ship can be either the shipowner (i.e., the registered owner) or the ISM Company of that ship. The registered owner and the ISM Company have to decide who is the most appropriate entity to take on responsibilities for complying with the ETS and MRV obligations. In the absence of an explicit decision by the registered owner and the ISM Company, the registered owner will be considered, by default, responsible for compliance with ETS and MRV obligations” (source).
More specifically, the ETS FAQs address the topic of bareboat charterer as follows:
The bareboat charterer can be responsible for compliance with ETS and MRV in respect of a given ship only if that bareboat charterer has accepted to assume ISM Code responsibilities in respect of that ship.
That bareboat charterer that assumes ISM Code responsibilities could accept to assume the responsibilities for ETS and MRV obligations from the registered owner. In such a case, the ISM Company must provide evidence of the mandate from the registered owner to its administering authority.
A bareboat charterer cannot be considered as the shipowner under ETS and MRV. Like in other matters, a shipowner may ask a third party to fulfil tasks on its behalf, including concluding contracts. Therefore, a bareboat charterer could sign a mandate with an ISM company on behalf of the registered owner if the bareboat charterer has been empowered to fulfil that task by the registered owner.
DG CLIMA has received many questions on this issue and will clarify the FAQs to make it clearer that the shipowner can authorise the bareboat charterer, via a contract, to sign a mandate with an ISM company, so that the latter can assume the ETS/MRV obligations.
Relevant Article:
Attachment 1:ECSA C-13455 For action by 8 March COB - ETS: latest information on the transposition, offshore vessels and MOHA
3. EU adopts 13th package of sanctions against Russia
On the 23rd February 2024, the European Commission adopted the 13th package of sanctions against Russia, two years since Russia invaded Ukraine.
The package focuses on further limiting Russia's access to military technologies, such as for drones, and on listing additional companies and individuals involved in Russia's war effort. With this new package the number of individual listings has reached over 2000.
The European Commission points out that the full implementation of the sanctions is crucial, to deny Moscow the revenue, goods and technology it needs to feed its war and that it will continue supporting Member States to ensure effective enforcement of the measures, as well as working closely with third countries to tackle circumvention attempts.
It should be noted that this package specifically lists companies, including third country companies, procuring Russia with key drone components and introduces some sectoral sanctions to close loopholes and make drone warfare more complicated.
Furthermore, the package expands the list of advanced technology items that may contribute to Russia's military and technological enhancement or to the development of its defence and security sector, adding components used for the development and production of drones, such as electric transformers, static converters and inductors found inter alia in drones, as well as aluminium capacitors, which have military applications, such as in missiles and drones and in communication systems for aircrafts and vessels.
Additionally, the new package adds the United Kingdom to the list of partner countries for the iron and steel imports. These partner countries apply a set of restrictive measures on imports of iron and steel and a set of import control measures that are substantially equivalent to those in the EU Regulation (EU) No 833/2014.
As can be seen in the related EU Fact Sheet, the remaining few exports of dual-use and advanced tech to Russia are allowed strictly and exclusively under exemptions and derogations e.g., for medical purposes, or (mostly) “grandfathered” existing projects in Russia. They are subject to assessment and authorisation by Member State authorities.
Annex II of the Council Regulation 2074/745 amending Regulation (EU) No 833/2014, includes a list of goods and technologies, which according to Article 2 of Regulation 833/2014 be prohibited to sell, supply, transfer or export, directly or indirectly.
Relevant Articles:
Eur-lex. Europa/Council Regulation (EU) 2024/745 of 23 February 2024
Reuters 21/02 - EU approves new sanctions package against Russia
Politico 21/02 - EU agrees 13th round of Russia sanctions
Safety4Sea 22/02 - EU adopts comprehensive 13th package of sanctions against Russia
4. US TREASURY REPORT
The US Treasury Report for all actions reported is hereby attached.
Related Article:
Attachment 2: US Treasury Report for week 17/02/2024 -23/02/2024
5. PIRACY REPORT
The Piracy Report for all actions reported is hereby attached.
Related Article:
Attachment 3: Worldwide Threat to Shipping (WTS) Report, for the period between 17 January 2024 – 14 February 2024
Nothing important to report from IMO, ILO and Parliament of Representatives.