Overview of 2019 Amendments to the Croatian Maritime Code

The 2019 amendments to the Croatian Maritime Code aimed to enhance the competitive strengths of Croatian shipping, improve seafarers' positions, reduce administrative barriers, digitize the shipping sector, and harmonize with EU legislation. Key topics covered include vessel definitions, safety, seafarers' social status, vessel registration, nautical packages, wreck removal, vessel arrest, and misdemeanour proceedings.

• Croatian maritime code
• 2019 amendments
• shipping sector
• EU legislation
• vessel definitions

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1. 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW Assoc.Prof.dr. Gordan Stankovi Vuki & Partners, law firm, Rijeka, Croatia AMLC IV Portoro 2019

2. RECENT HISTORY IN BRIEF - 1994 (the MC 1994 ) Croatia s first Maritime Code since the independence - MC 1994 amended only 2 times in 10 years - 2004 since 29 December 2004 Second Maritime Code (the MC 2004 ) in force - MC 2004 amended 7 times so far - Most recent amendments in force from 28 February 2019 (except few that will enter into force on 1 January 2020) Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

3. PRINCIPAL GOALS OF 2019 AMENDMENTS - Foster competitive strengths of Croatian shipping - Improve competitive capabilities on domestic and international markets position of Croatian seafarers and their - Reduce administrative barriers and set up a path to full digitalization in Croatian shipping sector - Improve attractiveness of Croatian flag - Harmonization with EU legislation Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

4. TOPICS: WIDE-REACHING - New / amended definitions of certain vessels - Safety of navigation and pollution prevention - Social status of seafarers - Vessel registration procedure - Nautical and yachting package - Removal of wrecks and sunken objects - Arrest and judicial sale of vessels - Misdemeanour proceedings Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

5. NEW / AMENDED DEFINITIONS OF CERTAIN VESSELS IN GENERAL: - Definitions of vessels omit GT as defining criterion, and retain only hull length - New / amended definitions kick in from 1 January 2020 NEW DEFINITIONS: - Large passenger yacht - Autonomous vessel - Traditional vessel Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

6. NEW / AMENDED DEFINITIONS OF CERTAIN VESSELS SHIPS vs. BOATS - Delimitation criteria: - 15 metres in length (previously 12 metres) OR authorised to carry 12 passengers (as before) YACHTS vs. LARGE PASSENGER YACHTS: - Yacht - 15 metres in length (previously 12 metres) + authorised to carry 12 passengers - Large passenger yacht - 24 metres in length + authorised to carry 12 but 36 passengers Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

7. SAFETY OF NAVIGATION + POLLUTION PREVENTION Special new sections introduced, dealing with: - Casualty investigation - Search and rescue operations - Pollution preparedness and response - Vessel lay-up regime Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

8. SOCIAL STATUS OF CROATIAN SEAFARERS - The 183-day criterion for income tax exemption (where applicable) further extended to include more events and circumstances outside the seaferar s regular service on board a ship - Tax benefits (where applicable) apply to trainees as well as yacht crews - Ministry may co-finance trainees wages and social contributions during traineeship Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

9. VESSEL REGISTRATION PROCEDURE CURRENT STATUS: - Several and geographically scattered registers (each harbour master s office holds its own) for ships and yachts + many more held by HMO affiliates in charge of boats - Several types of registers (ships; yachts; boats; floating objects; offshore installations; ships under construction; yachts under construction; etc.) - Clumsy rules of procedure (administrative procedure mixed with pre-WWII rules on land registration procedure) - Out-dated technique of entering data in the vessel register Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

10. VESSEL REGISTRATION PROCEDURE NEW STATUS (from 1 January 2020): - One centralised and integrated register covering all types of craft and the entire country - Simplified and more relaxed rules of procedure (less paperwork, less formality) - Electronic communication (inspection of the register and exchanging data with the registrar) - Fast and efficient completion Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

11. YACHTING AND NAUTIC TOURISM PACKAGE - Introduction of large passenger yachts and making them subject to tonnage tax (where applicable) - Introduction of two new thoroughly regulated contracts (yacht charter contract and nautical berth contract) - Amendments in various other parts of MC, including: a revised definition of maritime liens to expressly include berthing fees in special-purpose ports; a revised definition of the vessel-repair contract to include yacht-repair and maintenance; a revised list of maritime claims subject to vessel arrest; provisions dealing with wreck removal being extended to areas on shore Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

12. REMOVAL OF WRECKS AND SUNKEN OBJECTS - Application extended to the land component of the maritime demesne (allowing concessionaires to apply rules on wreck removal to derelict vessels ashore) port authorities and - Rules now fully harmonised with the Nairobi Convention 2007 (including compulsory insurance and time limitation periods) - Costs associated with compulsory removal to be advanced by the authorised body , BUT secured by a statutory lien + right of retention and enjoy high order of priority in judicial sale Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

13. ARREST AND JUDICIAL SALE OF VESSELS ARREST: - List of maritime claims further extended to include berthing fees in special-purpose ports (such as marinas) - Definition of Personal Debtor extended to include a buyer of a ship under construction JUDICIAL SALE: - MC takes priority over Bankrupty Act (where a vessel is subject to a maritime lien, ship mortgages or a statutory lien) - Statutory liens enjoying highest priority - extended to claims relating to removal costs of sub-standard vessels Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

14. OTHER BUSINESS 2nd Pillar new Harbour Master Offices Act (to replace the one from 1997) Powerful tools in exercising inspection powers and imposing sanctions on land and sea 3rd Pillar new Maritime Demesne and Seaports Act (to replace the one from 2003) going nowhere and getting there who knows when Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW

15. Thank you for your attention. Gordan Stankovi 2019 AMENDMENTS TO THE CROATIAN MARITIME CODE AN OVERVIEW