Guide toShip RegistrationAnd Related Matters

GUIDE TOSHIP REGISTRATIONAND RELATED MATTERS

Limassol, 2018

REPUBLIC OF CYPRUS

SHIPPING DEPUTY MINISTRYTO THE PRESIDENT

www.shipping.gov.cy

Why Cyprus

A maritime nation committed to a safe, secure and sustainable maritime industry

35˚Navigating33˚Excellence

• Asovereignflagofprogressandquality.

• The3rdlargestfleetintheEU.

• Classifiedinthe‘WhiteList’oftheParisandTokyoMoUson PortStateControl.

• Businessfriendlycommonlawjurisdiction.

• ComprehensiveandfavourableTonnageTaxSystem,approved bytheEuropeanUnion.

• Morethan60DoubleTaxAvoidanceTreaties.

• Morethan25BilateralAgreementsonMerchantShipping.

• Competitiveshipregistrationcostsandfees.

• Nonationalityrestrictionsforseafarers.

• Topqualitypublicservicestotheshippingindustry24/7.

• Customer-orientedapproach.

• Valueformoneyprofessionalservicesofexcellentquality.

• WebservicesfortheregistrationofseafarersandrecognitionofCertificates ofCompetency.

• MaritimeofficesinPiraeus,London,Hamburg,Rotterdam,NewYorkCity andBrussels.

• Stronginvolvementininternationalshippingfora(IMO,ILO)andEU. MemberoftheIMOCouncilsince1987.

Preface

Why the Cyprus flag?

1 Maritime Centre

2 Maritime Administration

3 Legislative framework (Overview)

4 Registration of ships 4.1 Typesofregistration 4.2 Overview 4.3 Conditionsofownership 4.4 GovernmentPolicyontheRegistrationofShipsundertheCyprusflag 4.5 Languageandsubmissionofsupportingdocumentation 4.6 ManagementandoperationofaCyprusship 4.7 MinimumSafeManningDocument 4.8 CertificateofInsuranceorotherFinancialSecurityinRespectofCivil Liability 4.9 DeclarationofMaritimeLabourCompliance-PartI 4.10 ClassificationSocieties 4.11 RadioTrafficAccountingAuthorities 4.12 PointofServiceActivation

5 Provisional registration 5.1 Administrativeprocedures 5.2 Applicationandrequireddocumentsforprovisionalregistration 5.3 Completionofprovisionalregistration 5.4 Extensionofprovisionalregistration

6 Permanent registration 6.1 Timeframe 6.2 Applicationandrequireddocumentsforpermanentregistration 6.3 Measurementoftheship’stonnagesandShip’sCarvingandMarking 6.4 Entryinspection 6.5 Completionofpermanentregistration

Index

9 |

10 |

12 |

13 |

14 |

16 |

25 |

28 |

7

7 Bareboat charter registration (Parallel registration) 7.1 Typesofregistration 7.2 Parallel-inregistration 7.2.1 Introduction 7.2.2 Statusofashipduringparallel-inregistration 7.2.3 Applicationanddocumentation 7.2.4 Completionofparallel-inregistration 7.2.5 Measurementoftheship’stonnages 7.2.6 Nameoftheship 7.2.7 Extensionofparallel-inregistration 7.2.8 Terminationofparallel-inregistration 7.3 Parallel-outregistration 7.3.1 Introduction 7.3.2 Statusofashipduringparallel-outregistration 7.3.3 Applicationanddocumentation 7.3.4 Completionofparallel-outregistration 7.3.5 Extensionofparallel-outregistration 7.3.6 Terminationofparallel-outregistration

8 Other Registry Transactions 8.1 Introduction 8.2 ChangeofShip’sName 8.3 Deletionoftheship 8.4 Mortgages-relatedmatters

9 Fees and taxes 9.1 Introduction 9.2 Registrationfees 9.3 CyprusRegistryMaintenanceAnnualFee 9.4 Feesfortherecording,transfer,transmissionordischargeofmortgages 9.5 Feesforthetransferortransmissionandforthedeletion,ofships 9.6 Otherfeesandcharges

10 Tonnage tax

11 Payable fees and taxes (Synopsis)

32 |

38 |

40 |

46 |

47 |

12 Maritime Labour, Training, Certification and Registration of Seafarers 12.1 Legislativeframework 12.2 Nationalityofcrew 12.3 Manningandemploymentofseafarers 12.4 CertificatesofCompetencyforOfficersandRatings´Certificates 12.5 Endorsementattestingtherecognition 12.6 Employmentofcadets 12.7 Seafarer’sIdentificationandSea-ServiceRecordBook 12.8 Fees 12.9 Taxationofseafarers

13 International relations 13.1 Doubletaxationavoidanceagreements 13.2 Merchantshippingagreements 13.3 Freighttaxexemptions

APPENDICESAppendix 1: CertificatesofCompetencyRecognisedbytheGovernment oftheRepublicofCyprus

Appendix 2: BilateralAgreementsonMerchantShippingbetweentheGovernment oftheRepublicofCyprusandGovernmentsofotherStates.

Index (cont)

51 |

53 |

54 |

48 |

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ThepurposeofthisGuideistoprovideconcisehigh-levelinformationonmattersrelatingtotheregistrationofshipsandtherelatedtransactionsintheRegisterofCyprusShips.

FurtherdetailedinformationisprovidedonthewebsiteoftheShippingDeputyMinistrytothePresident(hereinafter“theDeputyMinistry”).www.shipping.gov.cy

Preface

Why the Cyprus flag?

• Political security:

• AsovereignflagmemberoftheEuropeanUnion. • EuropeanUniondiplomaticprotectionaffordedtoCyprusships.

• Legislative framework:

• Partytoallinternationalmaritimeconventionsonsafety,security, pollutionprevention,maritimelabourandhealthandsafetygiving fullandcompleteeffecttotheirprovisions. • Bilateralagreementsonmerchantshippingsignedwith27states, throughwhichCyprusshipsreceiveeithernationalormost favourednationtreatmentintheportsofotherstates.

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• Comprehensiveandpioneeringnationallegislationforthe protectionofCyprusshipsfrompiracyandotherunlawfulacts includingalegalframeworkallowingandregulatingtheuseof privatearmedsecuritypersonnelinhigh-riskareas.

• Service:

• Acommitmentforprovidingqualityservices,acompetitive businessandtaxationenvironmentwhilstensuringefficient shippingandthehighestpossiblestandardsinsafety,security andenvironmentalprotection. • Maritimeofficesstrategicallylocatedaroundtheglobe,offering servicestoCyprusshipsandtoseafarers(Piraeus,London,New York,Hamburg,RotterdamandBrussels). • Aqualityflaglistedinthe“WhiteList”oftheParisandTokyoMoUs onPortStateControlresultinginfewerinspectionsoftheships andlessdelaysattheportsofbothMoUs. • AnetworkoflocalinspectorsofCyprusships,coveringimportant portsworldwideinordertoensureefficientandeffectivecontrol ofCyprusshipsandtoavoiddetentionsbyportstatecontrol. • Efficient,qualitativeandreliableprovisionof24hourserviceby theDeputyMinistry. • Extensiveexperiencestemmingfromstronginvolvementinthe workofinternationalorganizations(IMOandILO)andofthe EuropeanUniononshippingandmaritimeaffairs. • Nonationalityrestrictionsonseafarers.

• Economic benefits:

• FavourabletonnagetaxschemeapprovedbytheEuropeanUnion. • Notaxonincomederivedfromtheoperationofqualifyingship(s). • Notaxondividendspaidtoshareholdersoutofprofitsmadefrom theoperationorfromthesaleofqualifyingship(s). • Notaxoninterestearnedonworkingcapitalofaqualifyingship. • Notaxontheincomeorprofitmadefromthesaleofaqualifying ship. • Notaxonthesalaryorotherbenefitsofthemaster,theofficers andcrewmembersofaqualifyingCyprusship. • Competitiveshipregistrationcostsandfees. • Noestatedutyontheinheritanceofsharesinaship-owning company. • Fullprotectionforfinanciersandmortgagees. • Doubletaxavoidanceagreementswithmorethan60states.

“A sovereign flag of quality and progress!”

1. Maritime Centre

Cyprushasovertheyearsbecomeoneofthelargestandwidelyknownshippingcentresintheworld,comprisingbothshipowningandshipmanagementcompanies.Severaloftheshipmanagementcompanieswhichoperateontheislandrankamongstthelargestoftheirkindintheworldanditisestimatedthattheymanageabout20%oftheworld’sthirdpartymanagedfleet.

TheRegisterofCyprusShips,whichwasestablishedin1963,ranksamongstthetopregistriesintheworldwithamerchantfleetexceeding23milliongrosstonnageand3rdintheEuropeanUnionwithapercentageofabout11%ofthetotalfleetoftheEuropeanUnionmemberstates.

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2. Maritime Administration

ResponsibilityforthedevelopmentofmaritimeactivitieslieswiththeShippingDeputyMinistrytothePresidentoftheRepublicofCyprus,previouslytheDepartmentofMerchantShipping.

TheDepartmentofMerchantwasestablishedandstartedfunctioningasadistinctentityintheMinistryofCommunicationsandWorks(whichwasrenamedtheMinistryofTransport,CommunicationsandWorks)in1977.Asof1stMarch2018theDepartmentofMerchantShippingwastransformedandrenamedintotheShippingDeputyMinistrytothePresidentandinessencecarriesouttheflag,portandcoastalstatefunctionsoftheRepublicofCyprus.

TheDeputyMinistryisresponsibleforthedevelopmentofmaritimeactivities,whichinclude:

• registrationofships,

• development,administrationandenforcementofthemerchantshipping legislation,

• inspectionandcontrolofships,

• enforcementofinternational,EuropeanUnionandnationalmaritimelegislation,

• seafarers-relatedmattersincludingregistration,trainingandcertificationof seafarersand

• taxationofshipowning,shipcharteringandshipmanagementcompanies.

ThemaritimeofficesoftheDeputyMinistryinPiraeus,London,NewYork,Hamburg,RotterdamandBrusselsprovideonthespotawiderangeofservicestoCyprusships,seafarersandtoship-owners,managersandoperators.

3. Legislative framework (Overview)

TheadministrationoftheRegisterofCyprusShipsandtheregistrationofCyprusshipsandotherrelatedregistrytransactionsisgovernedbytheMerchant Shipping (Registration of Ships, Sales and Mortgages) Law of 1963, asamended.

Mattersrelatingtomaritimelabour,workingandlivingconditionsandhealthandsafetyatworkonboardCyprusshipsaregovernedbytheMerchantShipping(Masters and Seamen) Law of 1963, as amended andthe Maritime Labour Convention 2006 (Ratification) and for Matters Connected Therewith Law of 2012,asamended.

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ThethirdmainmerchantshippingstatuteistheMerchant Shipping (Fees and Taxing Provisions) Law of 2010,whichaddressesallissuesoftaxationandsetsoutthepayablefeesandtaxes.

InadditiontotheEuropeanUnionregulationsrelatingtoshipping,whichapplytoCyprusships,CyprushastransposedintoitsnationallawstheEuropeanUniondirectiveswhichgovernvariousmattersrelatingtosafety,securityandthepreventionofpollutionfromships.

Cyprushasalsoadoptedthelatestinternationalconventionsandprotocolsonmaritimesafetyandsecurity,preventionofpollutionfromships,maritimelabour,training,certificationandwatchkeepingofseafarers,limitationofship-owners’civilliabilityandforthefacilitationofmaritimetraffic.Thisincludesintheiramendedform,interalia,the1974SOLASConventionandits1978/1988Protocols,MARPOL(AnnexesItoVI)andits1978and1997Protocols,the1966LoadLinesConventionandits1988Protocol,the2000AFSConvention,the1972COLREGsConvention,the1969TonnageConvention,the1992CLCand1992FundConventions,the1976LLMCConventionandits1996Protocol,the2001BunkersConvention,the1988SUAConventionanditsProtocol,the1978STCWConvention,the1965FALConvention,the1979SARConvention,the1972CSCConvention,theMLC2006andthe2007WreckRemovalConvention.

AnindexoftheCyprusmaritimelegislationandanunofficialEnglishlanguagetranslationofmostofthenationallawsisavailableontheDeputyMinistry’swebsite.

“Business friendly common law jurisdiction.”

4.1 Types of registration TherearethreetypesofshipregistrationinCyprus:provisional,permanent andbareboatcharterregistration(parallel).

4.2 Overview Allmattersrelatingtotheregistrationofshipsandtherelatedtransactions intheRegisterofCyprusShipsorintheSpecialBookofParallelRegistration aregovernedbytheMerchant Shipping (Registration of Ships, Sales and Mortgages) Law of 1963, as amended.

Inaddition,inconnectionwiththeregistrationofships,theprovisionsofthe Government Policy on the Registration of Ships under the Cyprus flag,whichis establishedpursuanttotheprovisionsoftheaforesaidlaws,alsoapply.

4. Registration of ships

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Applicationsfortheregistrationofshipsandfortherelatedtransactionsin theRegisterofCyprusShipsorintheSpecialBookofParallelRegistration mustbesubmittedtotheRegistrarofCyprusShips.

UndertheAdvocatesLawsofCyprusonlylawyersregisteredaspractising advocatesinCyprusareentitledtodraftthenecessarydocumentsforthe incorporationofCypruscompaniesaswellastocarryoutallregistry transactions.

Consequently,thefirststeptobetakenbypersonsinterestedinregistering ashipundertheCyprusflagistoengagetheservicesofalocalregistered advocate.ForfurtherinformationvisittheCyprusBarAssociationwebsite (www.cyprusbarassociation.org).

Theregistrationofshipsandtherelatedtransactionsareeffectedbythe RegistrarofCyprusShips(theRegistrar)whoisstationedattheheadoffice oftheDeputyMinistryinLimassol.However,theprovisionalregistrationof shipsandothertransactions(otherthanthepermanentandthebareboat charterregistration)maybeeffectedabroadbyaconsularofficerofthe RepublicofCyprus(consularofficer)stationedatanyoneoftheDiplomatic orConsularMissionsoftheRepublicofCyprusuponinstructionsissuedby theRegistrar.Insuchcases,thetransactionsarerecordedbytheRegistrar intheRegisterasfromthedateandtimetheyhavebeeneffectedbythe consularofficer.

Theofficeaddresses,contactdetailsandworkinghoursoftheDiplomatic andConsularMissionsandoftheHonoraryConsularOfficersoftheRepublic ofCypruscanbefoundonthewebsiteoftheMinistryofForeignAffairs (www.mfa.gov.cy).

Thelegislationrequiresthepaymentoftheprescribedfeesandtaxespriorto theregistrationofashiporothertransactionintheRegisterofCyprusShipsor intheSpecialBookofParallelRegistration.

4.3 Conditions of ownership AshipmayonlyberegisteredintheRegisterofCyprusShipsif:

(1) morethanfiftypercent(50%)ofthesharesoftheshipareowned: - byCypriotcitizens,or - bycitizensofothermemberstates1whointheinstanceofnotbeing permanentresidentsoftheRepublicofCypruswillhaveappointedan authorisedrepresentativeintheRepublicofCyprus,or

1 member state means a member state of the European Union or other contracting party to the European Economic Area Agreement.

“The 3rd largest fleet in the EU.”

(2) thetotal(100%)ofthesharesoftheshipareownedbyoneormore corporations,whichhavebeenestablishedandoperate:

- inaccordancewiththelawsoftheRepublicofCyprusandhavetheir registeredofficeintheRepublic,or

- inaccordancewiththelawsofanyothermemberstateandhave theirregisteredoffice,centraladministrationorprincipalplaceof businesswithintheEuropeanEconomicAreaandwhichwillhaveeither appointedanauthorisedrepresentativeinCyprusorensuredthat themanagementoftheshipisentrustedinfulltoaCypriotora Communityshipmanagementcompanyhavingitsplaceofbusiness inCyprus,or

- outsideCyprusoroutsideanyothermemberstatebutcontrolled byCypriotcitizensorcitizensofmemberstatesandhaveeither appointedanauthorisedrepresentativeinCyprusorensuredthat themanagementoftheshipisentrustedinfulltoaCypriotora Communityshipmanagementcompanyhavingitsplaceofbusiness inCyprus.

ThecorporationisdeemedtobecontrolledbyCypriotsorcitizensofanyother memberstateswhenmorethan50%ofitssharesareownedbyCypriotsor citizensofanyothermemberstatesorwhenthemajorityofthedirectorsof thecorporationareCypriotcitizensorcitizensofanyothermemberstate.

AnauthorisedrepresentativemaybeaCypriotcitizenoracitizenofanyother memberstate,whoisresidentinCyprusorapartnership/corporation/branch establishedinaccordancewiththelawsofCypruswhichhasitsplaceof businessintheRepublicofCyprus.

ThecommonpracticeofthosewishingtoregistertheirshipsundertheCyprus flagistoincorporateacompanyinCyprus,whichwilleitheracquiretheshipin itsname,orbareboatchartertheship.

4.4 Government Policy on the Registration of Ships under the Cyprus flag The Government Policy on the Registration of Ships under the Cyprus flagisavailableonthewebsiteoftheDeputyMinistryandstatesthe additionalrequirementsorconditionsfortheregistrationofshipswhichare deemednecessaryfortheachievementofsafe,secureandefficientshipping oncleanoceansandforthepurposeofsafeguardingtheinterestsofthe Cyprusshipsandoftheirowners,bareboatcharterers,managersand operators.

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TheRegistrarwillnotconsiderapplicationsfortheregistrationintheRegister ofCyprusShipsorintheSpecialBookofParallelRegistrationofshipswhich:

(1) atthetimeoftheapplicationfortheirregistration,arebannedon portstatecontrolgroundsbyastatememberofanyoneofthe MemorandaofUnderstandingonportstatecontrol,fromenteringthe portsofthestatespartytothatmemorandumorwhichhavebeenbanned byastatefromenteringitsports;

(2) havebeendetainedonportstatecontrolgroundson3ormoreoccasions duringthe2yearsperiodpriortothedateofapplicationforregistrationby StatesoftheParisortheTokyoortheMediterraneanMoUsonPortState ControlorbytheUnitedStatesCoastGuard;and

(3) havebeenconstructedforexclusiveuseoninlandnavigationorwhich aretobeusedexclusivelyoninlandnavigation(e.g.ininternalwaters, rivers,inlandwaterways,canals,naturalorartificiallakes,waterreservoirs ordams).

Type of ship

CargoshipsandCargoHighSpeedCraft

Fishingvessels

PassengershipsandPassengerHighSpeedCraftengagedoninternationalorshortinternationalvoyages

PassengershipsandPassengerHighSpeedCraftengagedondomesticvoyageswithintheterritoryofaState,otherthanCyprus

PassengershipsandPassengerHighSpeedCraftengagedondomesticvoyageswithintheterritoryofCyprus

Shipsoftypesotherthanthoselistedabove

FloatingProductionStorageOffloadingUnits;FloatingStorageOffloadingVesselsandMobileOffshoreDrillingUnits

Yes≤25years

Yes≤25years

Yes≤25years

Yes≤35years

Yesif≥15years

Yesif≥20years

Yesif≥15years

Yesif≥20years

Yesif≥30years

Yesif≥25years

Yesif≥20years

No

No

Yesif2years≤Age≤10years

BiennialifAge>10years

Annual

Yesif2years≤Age≤10years

BiennialifAge>10years

Annual

NoInordertooperatethey

arerequiredtobeinspectedandcertified

annually

Yesiftheshipiscarryingindustrialorspecial

purposepersonneland2years≤Age≤10years

BiennialAge>10years

Annual

No

No

No

No

Maximumage limit

Entryinspection

requiredAdditional inspection

required

Related conditions

The age limits and conditions on ship registration are summarized in the table below:

“Age” means the age of the ship which is calculated by deducting the year in which the keel of the ship was laid from the year in which the application for its registration was filed. In case a ship has undergone major conversion or reconstruction, the year in which the major conversion or reconstruction began may be taken into account (in lieu of the year in which its keel was laid) for the calculation of the age of the ship.

“Cargo ship” means a ship which has been constructed or adapted for the purpose of carrying cargo in any form.

“Passenger ship” means a ship which has been constructed or adapted for the purpose of carrying fare-paying passengers.

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Theentryinspectionandtheadditionalinspectionsarecarriedoutbythe surveyorsoftheDeputyMinistryattheexpenseoftheregisteredowner orregisteredbareboatcharterer,asthecasemaybe.Theentryinspection ofashipshouldbecarriedoutnolaterthan3monthsfromthedateof theprovisional,ortheparallel-inregistrationorwithin1monthfromthe dateofpermanentregistrationifeffecteddirectly.

Inrelationtofishingvessels,theRegistrarwillnotconsiderapplicationsfor theirregistrationunlesstheyareaccompaniedbyanofficialcommunication fromtheDirectoroftheDepartmentofFisheriesandMarineResearchofthe MinistryofAgriculture,RuralDevelopmentandEnvironment,informingthe Registrarthattheregistrationofthefishingvesselinquestionisallowed.

4.5 Language and submission of supporting documentation ThelegislationprovidesthatalldocumentswhichrefertoCyprusships (includingdocumentsrequiredfortheirregistration)areadmissibleprovided thattheyaredrawnupinanofficiallanguageoftheRepublicofCyprusor inalanguagecomprehensibletothecompetentofficersoftheDeputy Ministry.Inpractice,mostofthedocumentsareadmissibleintheEnglish language.Suchprovisionmakestheregistrationprocessfasterandsaves ontranslationexpenses.

Asarule,thesupportingdocumentationrelatingtotheregistrationofships andtoothertransactionsintheRegisterofCyprusShipsorintheSpecial BookofParallelRegistrationshouldbesubmittedtotheRegistrar.However, someoftherequireddocumentation(exceptdocumentationforthe permanentandparallelregistration)maybesubmittedabroadtoanyoneof theDiplomaticandConsularMissionsofCyprus.Insuchcases,theRegistrar issuesinstructionstotherelevantconsularofficerstoacceptsaid documentationandtoproceedwiththetransactionrequired.

4.6 Management and operation of a Cyprus ship ThefollowingareonlyrelevantinconnectionwithCyprusshipsthatare requiredtocomplywiththerequirementsofSOLASchaptersIXandXI-2and theISMandISPSCodes,aswellas,STCWregulationI/14andtheSTCWCode.

Anorganisationoraperson,whichassumestheoperationofCyprusship fromitsregisteredowner,(the“company”),isrequiredtocomplywiththe requirementsofSOLASchaptersIXandtheISMCode,SOLASchapterXI-2 andtheISPSCodes,STCWregulationI/14andtheSTCWCode,aswellas,the requirementsimposedonsuchcompaniesbythenationallawsofCyprus.

Thenameandtheparticularsofthecompanyarenotifiedonlyinrelationto therequirementsofSOLASchapterIXandtheISMCode.Thecompany notifiedforthepurposesofSOLASchapterIXandtheISMCodeis automaticallyconsideredastheoneassumingtheresponsibilitiesimposedby SOLASchapterXI-2andtheISPSCodes,STCWregulationI/14andtheSTCW CodeandthenationallawsofCyprus.

TherequiredInterimDocumentofCompliance(InterimDoC)andDocument ofCompliance(DoC)maybeissuedtosuchcompaniesbyoneofthe RecognizedOrganizations(RO)(ClassificationSocieties)orbyanotherSOLAS ContractingGovernmentorbytheDeputyMinistryandmustbevalidforthe typeofshipwhichcorrespondstothetypeoftheCyprusshipinquestion.

Theapplicationfortheregistrationofashipmustbeaccompaniedbythe relatinginformationfortheISMandISPSCodes.Thismaybedoneby completingandsubmittingtherelevantformswhichareavailableonthe DeputyMinistry’swebsite.

IncasethecompanywhichisassumingtheoperationofaCyprusshipdoes notholdavalidInterimDoCorDoCissuedby,attherequestof,oronbehalfof Cyprus,theDeputyMinistrywillissueinstructionstotheROorwillrequestthe SOLASContractingGovernment,whichhasbeennominatedbythecompany fortheissueofsuchcertificates.Inaddition,theDeputyMinistrywillissue instructionstotheROorwillrequesttheSOLASContractingGovernment, whichhasbeennominatedbythecompanyfortheissuetotheshipofthe requiredInterimSafetyManagementCertificate(InterimSMC)and subsequentlyoftheSafetyManagementCertificate(SMC).

TheinstructionstotheROfortheissueofInterimSMCandSMCmaybe sentinadvanceoftheregistrationofashipandbecomeeffectiveupon itsregistration.

BasedonthestandingarrangementsbetweenCyprusandtheROsthe issueofinstructionsfortheissuetoaCyprusshipofanInterimInternational ShipSecurityCertificate(InterimISSC)andsubsequentlyoftheInternational ShipSecurityCertificate(ISSC),isnotrequired.

ThecurrentpracticeallowsfortheInterimDoCandtheDoCtobeissuedby anROoranotherSOLASContractingGovernmentandtheInterimSMCand theSMCtobeissuedtoaCyprusshipbythesameoranotherROorbythe sameentity.

FurtherinformationonthespecificrequirementsofCyprusinrelationtothe requirementsofSOLASchaptersIXandXI-2andoftheISMandISPSCode areprovidedontheDeputyMinistry’swebsite.

4.7 Minimum Safe Manning Document Theapplicationfortheregistrationofashipshouldbeaccompaniedbyan applicationfortheissueofaMinimumSafeManningDocument,incase theshipisrequiredbySOLASchapterV/14andtheMerchant Shipping (Safe Manning, Hours of Work and Watchkeeping) Law of 2000,asamended,tohold suchdocument.Thismaybedonebycompletingandsubmittingtherelevant formwhichisavailableontheDeputyMinistry’swebsite.

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4.8 Certificate of Insurance or other Financial Security in Respect of Civil Liability Shipshavingagrosstonnageof300andoverarerequiredtohaveinsurance inplacethatcoversmaritimeclaimssubjecttolimitationundertheprovisions ofthe1976LLMCConventionandits1996Protocol,namelytheinsurance coverrequiredunderDirective 2009/20/EC of the European Parliament and of the Council of 23 April 2009 on the insurance of shipowners for maritime claimsandtohaveonboardevidencetothiseffect.

Shipshavingagrosstonnageof300andoverarerequiredtoholdaCertificate of Insurance or other Financial Security in Respect of Liability for the Removal of Wrecks (Wreck Removal).

Shipshavingagrosstonnageof1,000andoverandcarryingforuseonboard bunkeroilarerequiredtoholdaCertificate of Insurance or other Financial Security in Respect of Civil Liability for Bunker Oil Pollution Damage (Bunkers).

Shipscarrying2,000metrictonnesandoverofoilarerequiredtoholda Certificate of Insurance or other Financial Security in Respect of Civil Liability for Oil Pollution Damage (CLC).

Shipscarryingpassengersandrequiredtocomplywiththerequirementsof Regulation (EC) No. 392/2009 of the European Parliament and of the Council of 23 April 2009 on the liability of carriers of passengers by sea in the event of accidents arerequiredtoholdaCertificateofInsuranceorotherFinancial SecurityinRespectofLiabilityfortheDeathofandPersonalInjuryto Passengers(PLR).

Theapplicationfortheregistrationofsuchashipmust,whereapplicable, beaccompaniedbyanapplicationfortheissueofanyoftheaforesaid certificates.Thismaybedonebyusingthemodelapplicationswhichare availabletothisendontheDeputyMinistry’swebsite.

FurtherinformationonP&IClubswhoseBlueCardsareacceptedbythe GovernmentoftheRepublicofCyprusfortheissuanceoftheaforesaid certificatesareprovidedontheDeputyMinistry’swebsite.

4.9 Declaration of Maritime Labour Compliance – Part I Shipshavingagrosstonnageof500andover,whicharerequiredtocomply withtherequirementsoftheRegulationsandPartAoftheCodeforming partoftheMaritimeLabourConvention,2006,arerequiredtobeissuedwitha DeclarationofMaritimeLabourCompliance-PartI(DMLC).

BasedonthestandingarrangementsbetweenCyprusandtherecognized ClassificationSocietiestheissueofinstructionsfortheissuetoaCyprusship ofDMLC-PartII,InterimMLCandsubsequentlyMLCisnotrequired.

4.10 Classification Societies Cyprusshipswhicharerequiredtocomplywiththeprovisionsofthe internationalmaritimeconventionstowhichCyprusisapartymustbeclassed withoneoftheClassificationSocietiesthattheGovernmentoftheRepublicof Cyprushasrecognizedandauthorizedtoactonitsbehalf.TheseareABS,BV, CCS,CRS,DNVGLAS,KR,IRCLASS,LR,ClassNK,PRS,RINAandRS.

Furtherguidanceontheinformationanddatawhichtheship’sClassification SocietyhastoprovidetotheRegistrarinrelationtotheregistrationofaship areprovidedontheDeputyMinistry’swebsite.

ThestatutorycertificatesofaCyprusshipinaccordancewiththerequirements oftheinternationalmaritimeconventionsareissuedbytherecognized ClassificationSocietywithwhichtheshipisclassed.However,theInterim SMCandtheSMC,theInterimISSCandtheISSC,theDMLC-PartII,the InterimMLCandtheMLCcanbeissuedbyanyoneoftherecognized ClassificationSocieties.

4.11 Radio traffic accounting authorities Cyprusshipsmustbecoveredbyoneoftheradiotrafficaccountingauthorities whichtheGovernmentoftheRepublicofCyprusrecognises.Thesearelisted ontheDeputyMinistry’swebsite.

Theship’sradiotrafficaccountingauthorityhastoprovidetotheRegistrar, inrelationtotheregistrationofaship,aconfirmationthatitsregisteredowner hasmadewithitarrangementforthepaymentofallmaritimeradio communicationsmadebytheship.

Allmaritimeradiocommunicationsaccountsmustbepaidbyanaccounting authorityandpaymentsmadedirectlythroughlandearthstationsor internationalserviceprovidersarenotallowed.

4.12 Point of Service Activation ThepreferredPointofServiceActivation(PSA),forthepurposeofactivation/ deactivationformaritimemobileearthstations,mustbenominated.Theones recognizedbytheGovernmentoftheRepublicofCyprusarelistedonthe DeputyMinistry’swebsite.

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5.1 Administrative procedures Thelegislation,allowsfortheprovisionalregistrationofashipandmost ownersusuallyopttohavetheirshipsprovisionallyregisteredfirst.Thiswill allowthemtime(upto9monthsincludingathreemonthsextension)during whichtheywillbeabletocompletetheadministrativeformalitiesrelatingto anypreviousflagstateand/orstateofregistryandthoserelatingtothe permanentregistrationoftheshipinCyprus.

AshipmaybeprovisionallyregisteredeitherinLimassolbytheRegistraror abroadatanyDiplomaticorConsularMissionbyaconsularofficer.

Atthetimeoftheprovisionalregistrationtheshipmustbeataportor anchoragewhereshecanbesurveyedandcertifiedonbehalfofCyprus. Thepresenceoftheshipattheportorplacewheretheprovisionalregistration willbeeffectedisnotnecessary.

5. Provisional registration

5.2 Application and required documents for provisional registration Theapplicationrequestingtheprovisionalregistrationofashipmustbemade byalocalregisteredadvocateactingonbehalfofthephysicalperson(s)or legalentityinwhosenametheshipwillberegisteredandshouldbeaddressed totheRegistrarofCyprusShips.

Inpractice,theRegistrarwillalsoacceptthesubmissionofapplicationsfor registrationofshipsonbehalfoflegalentities(companies)underformation, sothattheincorporationofthecompanyandregistrationoftheshipcan progresssimultaneously.However,thecompanymustbedulyincorporated priortotheregistrationoftheship.

Incasetheinterestedpartycontemplatestocompletetheprovisional registrationabroadtheapplicationshouldindicatetheDiplomaticorConsular Missionwherethiswilltakeplace.

Thedocumentsrequiredfortheprovisionalregistrationofashipcanbefound ontheDeputyMinistry’swebsiteundertheheading“DocumentsforProvisional andPermanentRegistration”.

5.3 Completion of provisional registration IftheshipfallswithintheambitoftheagecriteriaoftheGovernment Policy for the Registration of Ships under the Cyprus flag,theRegistrarwillinformthe registeredowneroftheconditionsunderwhichtheregistrationhasbeen permitted,aswellas,ofthosewhichhavetobefulfilledpriortothepermanent registrationoftheshipandthereafter.

IftheprovisionalregistrationwilltakeplaceabroadataDiplomaticorConsular Mission,someoftherequireddocumentscanbedepositedwiththeconsular officerwhowillcarryouttheprovisionalregistrationoratadifferentDiplomatic orConsularMission,ifrequired.Theseprimarilyrelatetodocuments,which arehandedoverbythesellertothebuyerorissuedbythepreviousflagstate and/orstateofregistry.However,insuchcases,theRegistrarcanonlyissue suchinstructionstotheconsularofficer(s)whowillbeinvolved,afterthe minimaloftherequireddocumentshavebeensubmittedtotheRegistrarand foundtobeinorder.

Providedtherequireddocumentshavebeensubmittedandfoundtobe inorder,theRegistrarortheconsularofficerwillproceedwiththeprovisional registrationoftheshipandwillissuetotheshiptheProvisionalCertificate ofCyprusRegistrywhichisvalidforsixmonthsfromthedateofitsissueand itsprovisionalradiolicense.Inaddition,theywillinformtheClassification Societywithwhichtheshipisclassedthattheshiphasbeenprovisionally registeredandthusitcanproceedwiththesurveyandcertificationoftheship.

Asindicatedelsewhereundertherelevantsection,instructionsfortheissue ofInterimSMCandSMCcanandaresentinadvanceoftheregistrationof ashipandbecomeeffectiveupontheship’sregistration.Inaddition,based

27

onthestandingarrangementsbetweenCyprusandtherecognized ClassificationSocietiestheissueofinstructionsfortheissueofInterimISSC andsubsequentlyISSC,ofDMLC-PartII,InterimMLCandsubsequentlyMLCis notrequired.

TheDeputyMinistry(oranyoneofthemaritimeofficesoftheDeputyMinistry overseas)willalsoproceedwiththeissuanceofthefollowing:

(1) MinimumSafeManningDocument; (2) RegistrationCertificateofMobileMaritimeRadioStation(RadioLicence) (3) Certificate(s)ofInsuranceorotherFinancialSecurityinRespectofCivil Liability,asthecasemaybe; (4) DeclarationofMaritimeLabourCompliance-PartI;and (5) ContinuousSynopsisRecord.

Theregisteredownerandthecompanyassumingtheoperationoftheship mustensurethattheshipdoesnotleavetheportoranchoragewhere sheislyingunlessanduntilshehasbeendulysurveyedandcertificatedby theClassificationSocietywithwhichtheshipisclassedandtheother ClassificationSocietieswhichmaybeinvolvedonbehalfofCyprus.

5.4 Extension of provisional registration Thelegislationallowsfora3-monthextensionoftheperiodoftheship’s provisionalregistration,providedtheProvisionalCertificateofCyprusRegistry oftheshiphasnotexpired.

Theapplicationrequestingtheextensionoftheprovisionalmustbemadeby thelocalregisteredadvocateactingonbehalfoftheregisteredownertothe RegistrarofCyprusShips.

Incasetheinterestedpartycontemplatestopresentabroadtheship’s ProvisionalCertificateofCyprusRegistryforextensionofitsperiodofvalidity, theapplicationshouldindicatetheDiplomaticorConsularMissionwherethis willtakeplace.Insuchacase,theRegistrarwillissueinstructionstothe relevantconsularofficer.

Thepresenceoftheshipataportoranchorageatthetimeorattheportor placewhere,theextensionoftheperiodofvalidityofitsProvisionalCertificate ofCyprusRegistrywillbeeffectedisnotnecessary.

Followingapprovaloftherequestedextension,theship’sProvisionalCertificate ofCyprusRegistryshouldbepresentedtotheRegistrarortoaconsularofficer fortheextensionofitsvalidity.However,incasethisisnotpracticallypossible, theRegistraroraconsularofficercanissueacertificateassociatedwiththe ship’sProvisionalCertificateofCyprusRegistryattestingtheextensionofits validity.Suchcertificateshallbeplacedonboardthesoonestpossibleandbe kepttogetherwiththeship’sProvisionalCertificateofCyprusRegistry.

6.1 Time frame Thepermanentregistrationofaprovisionallyregisteredshipmustbeeffected priortotheexpiryoftheship’sProvisionalCertificateofCyprusRegistry.

6.2 Application and required documents for permanent registration Theapplicationrequestingthepermanentregistrationmustbesubmittedby thelocalregisteredadvocateactingonbehalfoftheregisteredownertothe RegistrarofCyprusShips.

Thepresenceoftheshipataportoranchorageatthetimeofitspermanent registrationisnotnecessary.

Thedocumentsrequiredforthepermanentregistrationofashipcanbefound ontheDeputyMinistry’swebsiteundertheheading“DocumentsforProvisional andPermanentRegistration”.

6. Permanent registration

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6.3 Measurement of the ship’s tonnages and ship’s carving and marking ThegrossandnettonnageofaCyprusshiphavingalength,asdefinedinthe 1969TonnageConvention,of:

(1) 24metresandoverismeasuredinaccordancewiththe1969Tonnage ConventionandisrequiredtobeissuedwithanInternationalTonnage Certificate(1969),

(2) lessthan24metresismeasuredinaccordancewiththeMeasurement of Tonnage of Ships Smaller Than Twenty Four Metres in Length Regulations of 1993andisrequiredtobeissuedwithaCyprusTonnageCertificate.

AllCyprusshipsarerequiredtobesurveyedandissuedwithaCertificateof Surveystatingtheirmainparticularsandtheirgrossandnettonnages,which aresubsequentlyrecordedintheRegister.

TheCertificateofSurveyandtheInternationalTonnageCertificate(1969) ortheCyprusTonnageCertificatemaybepreparedbytherecognized ClassificationSocietieswithwhichtheshipisclassedorbytheDeputy Ministry.

TheoriginaloftheCertificateofSurveyandacertifiedcopyoftheInternational TonnageCertificate(1969)ortheCyprusTonnageCertificatemustbe submittedtotheRegistrarfortheissueoftheShip’sCarvingandMarkingNote.

Cyprusshipsarerequiredtobemarkedwiththenameoftheship,itsport ofregistry,itsofficialnumberanditsnettonnage.Thecorrectmarkingofthe shipcanbeverifiedandattestedbyasurveyorofoneoftherecognized ClassificationSocietiesorasurveyoroftheDeputyMinistry.

ThedulyverifiedShip’sCarvingandMarkingNotemustbesubmittedtothe Registrarforthepermanentregistrationoftheship.

TheofficialnumberofCyprusshipshavingagrosstonnageof100andover isthesameastheship’sidentificationnumberinaccordancewiththeIMO AssemblyresolutionA.600(15)ontheIMOshipidentificationnumberscheme (i.e.theIMOnumber)andmustbemarkedasrequiredbySOLASregulation XI-1/3.

TheofficialnumberofCyprusshipshavingagrosstonnagelessthan100is a6digitnumberallottedbytheRegistrar.

6.4 Entry inspection Theregisteredownerand/orthecompanyassumingtheoperationofa ship,whoseregistrationhasbeenpermittedundertheGovernmentPolicyfor theRegistrationofShipsundertheCyprusflagsubjecttoanentryinspection, mustmakearrangementswiththeDeputyMinistryfortheentryinspectionof theshipwithinthetimeframesspecifiedintheaforesaidpolicy.

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6.5 Completion of permanent registration IftheshipfallswithintheambitoftheGovernmentPolicyfortheRegistration ofShipsundertheCyprusflag,theconditionsunderwhichtheregistrationhas beenpermitted,aswellas,thosewhichhavetobefulfilledpriortothe permanentregistrationoftheshiphavetobecompliedwith.

Providedtherequireddocumentshavebeensubmittedandfoundtobein order,theRegistrarwillproceedwiththepermanentregistrationoftheshipand willissuetotheshiptheship’sCertificateofCyprusRegistrywhichisvalid indefinitelyfromthedateofitsissue.However,incaseanewCertificateof CyprusRegistryisissuedthepreviousoneautomaticallyceasestobevalidas fromthedateofissueofthenewcertificate.

Inaddition,theRegistrarwillinformtheClassificationSocietywithwhichthe shipisclassedandtheradiotrafficaccountingauthoritythattheshiphasbeen permanentlyregistered.

7.1 Types of registration Thelegislationprovidesforthetwotypesoftheinternationallyaccepted bareboatcharterregistration.Thesearetheregistrationofthebareboatcharter ofaforeignshipintheSpecialBookofParallelRegistration(commonlyreferred toas“Parallel-inregistration”)andtheregistrationofthebareboatcharterofa Cyprusshipinaforeignregister(commonlyreferredtoas“Parallel-out registration”).

ThebareboatregistrationofforeignandCyprusshipsundertheCyprusregime maybeeffectedwithmorethan20stateswhoselegislationiscompatiblewith theCypruslegislation.

7. Bareboat charter registration (Parallel registration)

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7.2 Parallel-in registration

7.2.1 Introduction Thebareboatcharterermustbeeitheraphysicalpersonoralegalentitythat qualifiesfortheparallel-inregistrationofaforeignshipinitsname.The qualificationrequirementsarethesameasthosefortheregistrationofthe ownershipofashipintheRegisterofCyprusships.

Thebareboatchartereroftheforeignshipmustbealegalentityoraphysical personwhoqualifiestoownaCyprusshipandtheprovisionsofthe GovernmentPolicyfortheRegistrationofShipsundertheCyprusflagapply.

Thelegislationofthestateofregistryoftheforeignshipmustallowits bareboatcharterregistration.Thepermissionorconsentoftheauthoritiesof thestatewheretheownershipoftheforeignshipisregisteredisrequired.In addition,theconsentofthemortgageesisalsorequired.

7.2.2 Status of a ship during parallel-in registration Thedeletionoftheshipfromtheregistryofthestatewhereitsownership isregisteredisnotrequired.However,itsrighttoflytheflagoftheStateof registryandtohaveitsnationalityissuspendedandtheforeignregistry remainsoperativeonlywithrespecttotheownershipandencumbrance’s statusoftheship.

Theperiodofparallel-inregistrationisusuallytwoyearsandisrenewable. Duringthatperiod,theshipfliestheCyprusflag,hastheCypriotnationality andissubjecttotheflagstatejurisdictionandtothelawsofCyprus.In addition,theportofregistrymarkedonthesternoftheshipmustbeLimassol andnotthatoftheforeignregistry.

7.2.3 Application and documentation Therelevantapplicationmustbemadebyalocalregisteredadvocateacting onbehalfofthebareboatchartererandshouldbeaddressedtotheRegistrar ofCyprusShips.

Theparallel-inregistrationcanonlybeeffectedbytheRegistrarofCyprus Shipsuponsubmissionoftherelevantdocuments.

Thedocumentsrequiredfortheparallel-inregistrationofaforeignshipcan befoundontheDeputyMinistry’swebsiteundertheheading“Documentsfor Parallel-inRegistration”.

7.2.4 Completion of parallel-in registration IftheshipfallswithintheambitoftheGovernmentPolicyfortheRegistration ofShipsundertheCyprusflag,theconditionsunderwhichtheregistrationhas beenpermittedhavetobecompliedwith.

Providedtherequireddocumentshavebeensubmittedandfoundtobein order,theRegistrarwillproceedwiththeparallel-inregistrationoftheshipand willissuetotheshiptheship’sCertificateofParallelRegistration,whichisvalid fortheperiodforwhichthebareboatregistrationhasbeenrequested.This periodshouldnotexceed2years.

Inaddition,theRegistrarwillinformtheClassificationSocietywithwhichthe shipisclassedandtheradiotrafficaccountingauthoritythattheshiphasbeen parallel-inregisteredandisthusentitledtoflytheCyprusflag.

7.2.5 Measurement of the ship’s tonnages Fortheparallel-inregistration,themeasurementofthetonnageoftheship isnotrequired.TherequiredCertificateofSurveyandtheInternationalTonnage Certificate(1969)ortheCyprusTonnageCertificate,asthecasemaybe,are issuedonthebasisofthecorrespondingdocumentsoftheforeignregistry. TheissuanceandverificationofaShip’sCarvingandMarkingNoteisalsonot required.

7.2.6 Name of the ship Shipsregisteredparallel-inmaykeepthenametheyheldundertheforeign registry,butthisnamemustnotbethesameasthenameofashipalready registeredintheRegisterofCyprusShipsortheSpecialBookofParallel Registration.

Shipsregisteredparallel-inmaychangetheirnameunderthesameconditions asthoseapplicabletoCyprusshipsregisteredprovisionallyorpermanently. Insuchcases,therelevantapplicationmustbemadebyalocalregistered advocateactingonbehalfoftheregisteredbareboatchartererwiththewritten consentoftheregisteredowneroftheshipandofthemortgageesandshould beaddressedtotheRegistrarofCyprusShips.

Aftertheapprovalofthechangeofthenameoftheship,themasterofthe shipmustconfirmthattheshiphasbeenmarkedwithitsnewname.Following this,theRegistrarwillrecordthechangeofthenameoftheshipintheSpecial BookofParallelRegistrationandwillnotifytheauthoritiesofthestatewhere itsownershipisregistered.Inaddition,theRegistrarwillendorsethenewname oftheshiponitsSpecialCertificateofCyprusRegistryorissueanew certificate.Alternatively,theendorsementofthenewnameoftheshipmay beeffectedbyaconsularofficerfollowinginstructionsissuedbyRegistrar.

7.2.7 Extension of parallel-in registration Theperiodofparallel-inregistrationisusually2yearsandisrenewable. Theextensionofthestatusoftheparallel-inregistrationisallowed,aslong as,therequirementsofthelegislationandoftheGovernmentPolicyonthe RegistrationofShipsundertheCyprusflagarecompliedwith.

Iftheextensionoftheparallel-inregistrationiseffectedpriortotheexpiry ofthepreviousperiod,theparallel-inregistrationoftheshipcontinuestobe governedbytheGovernmentPolicyontheRegistrationofShipsunderthe Cyprusflagthatwasapplicableatthetimeoftheinitialparallel-inregistration. Duringtheextensionoftheparallel-inregistration,theageoftheshipisnot takenintoconsiderationagaininthecontextoftheagecriteriastipulatedin theaforesaidpolicy.

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7.2.8 Termination of parallel-in registration Theterminationofthestatusoftheparallel-inregistrationofaforeignshipand itsdeletionfromtheSpecialBookofParallelRegistrationiseffectedwhen: - theforeignregistryrevokesitspermissionorconsentfortheparallel-in registrationoftheshipinCyprus; - thebareboatcharteroftheshipisterminatedorthemortgageesrevoke theirconsent; - theperiodforwhichtheparallel-inregistrationoftheshipwasapproved expires;and - thereexistsanyreasonfordeletionoftheshipfromtheSpecialBook ofParallelRegistrationasincasesofCyprusshipsprovisionallyor permanentlyregisteredintheRegisterofCyprusShips.

Uponterminationoftheparallel-inregistration,theshipshallimmediately ceasetoflytheCyprusflag,willnolongerbeentitledtohavetheCypriot nationalityandshallnolongerbesubjecttotheflagstatejurisdictionand tothelawsofCyprus.Inaddition,theshipshallnolongerbemarkedtoshow Limassolasitsportofregistry.

7.3 Parallel-out registration

7.3.1 Introduction ThebareboatchartererofaCyprusshipmustbealegalentityoraphysical personwhoqualifiestoregisterthebareboatcharterinanotherstate,under thelawsofthatstate.

ThelegislationofthestatewherethebareboatcharterofaCyprusshipisto beregisteredmustallowitsbareboatcharterregistration.Thepermissionor consentoftheauthoritiesofthestatewherethebareboatcharterofa Cyprusshipistoberegisteredisrequired.Inaddition,thepermission orconsentoftheRegistrarisalsorequiredandissuedprovidedtherelevant documentationissubmittedwiththeRegistrar,includingtheconsentofthe mortgagees.

7.3.2 Status of a ship during parallel-out registration ThedeletionoftheshipfromtheRegisterofCyprusShipswhereitsownership andmortgagesareregisteredisneitherrequirednorallowed.However,itsright toflytheCyprusflagandtohavetheCypriotnationalityissuspended.

Theperiodofparallel-outregistrationmaybeupto3yearsandisrenewable. Duringthatperiod,theCyprusshipfliestheflagoftheotherstate,acquiresits nationalityandissubjecttothejurisdictionandtothelawsoftheotherstate. Inaddition,theportofregistrymarkedonthesternoftheshipmustbetheport designatedbytheotherstate.

7.3.3 Application and documentation Therelevantapplicationmustbemadebyalocalregisteredadvocateacting onbehalfoftheregisteredowneroftheCyprusshipandshouldbeaddressed totheRegistrarofCyprusShips.

Theparallel-outregistrationcanonlybeeffectedbytheRegistrarofCyprus Shipsuponsubmissionoftherelevantdocuments.

Thedocumentsrequiredfortheparallel-outregistrationofaCyprusshipcan befoundontheDeputyMinistry’swebsiteundertheheading“Documentsfor Parallel-outRegistration”.

7.3.4 Completion of parallel-out registration Providedtherequireddocumentshavebeensubmittedandfoundtobein order,theRegistrarwillrecordintheRegisterofCyprusShipsthattheshiphas beenregisteredinparallelwithanotherstate,togetherwiththenameofthe stateandtheperiodforwhichtheparallel-outregistrationhasbeenpermitted. Thisperiodshouldnotexceed3years,howeveritmaybeextended.

Inaddition,theRegistrarwillinformtheClassificationSocietywithwhichthe shipisclassedandtherelevantradiotrafficaccountingauthoritythattheship hasbeenparallel-outregisteredandhasthusceasedtoflytheCyprusflag.

TheProvisionalCertificateofCyprusRegistryortheCertificateofCyprus Registry,asthecasemaybe,togetherwiththeotherstatutorycertificates issuedby,oronbehalf,oftheGovernmentoftheRepublicofCyprusmust bereturnedtotheRegistrar.

Inaddition,Cyprusshipsprovisionallyregisteredwhichhavebeenallowed toeffectaparallel-outregistrationmustcompletetheprocessoftheir permanentregistration.

IftheCyprusshipfallswithintheambitoftheGovernment Policy on the Registration of ships under the Cyprus flag,theobligationtocomplywith conditionsunderwhichtheregistrationhasbeenpermittedissuspended fortheperiodofparallel-outregistration.

7.3.5 Extension of parallel-out registration Theperiodofparallel-outregistrationisusuallyforaperiodofupto3 yearsandisrenewable.Theextensionofthestatusoftheparallel-out registrationisallowed,aslongas,therequirementsofthelegislationand oftheGovernment Policy on the Registration of Ships under the Cyprus flag arecompliedwith.

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7.3.6 Termination of parallel-out registration Theterminationofthestatusoftheparallel-outregistrationofaCyprusship anditsrecordingintheRegisteriseffectedwhen: - theRegistrarrevokesitspermissionorconsentfortheparallel-out registrationoftheshipinaforeignregistry; - theforeignregistryrevokesitspermissionorconsentfortheparallel-in registrationoftheshipinitsregistry; - thebareboatcharteroftheshipisterminatedorthemortgageesrevoke theirconsent; - theperiodforwhichtheparallel-outregistrationoftheshipwasapproved expires;and - thereexistsanyreasonfordeletionoftheshipfromtheRegister.

Uponterminationoftheparallel-outregistration,theshipshallimmediately ceasetoflytheflagoftheotherstate,willnolongerbeentitledtohaveits nationalityandshallnolongerbesubjecttotheflagstatejurisdictionand tothelawsoftheotherstate.Inaddition,theshipshallnolongerbemarked toshowasitsportofregistrytheportdesignatedbytheotherstate.

Uponterminationoftheparallel-outregistration,theshipresumesitsright toflytheCyprusflag.Theconditions(ifany)imposedinaccordancewith theGovernment Policy on the Registration of Ships under the Cyprus flag, applicableatthetimeoftheship’sinitialregistrationmustbesatisfied. Duringtheterminationoftheparallel-out,theageoftheshipisnottaken intoconsiderationagaininthecontextoftheagecriteriastipulatedinthe aforesaidpolicy.

8.1 Introduction Transfersandtransmissionsofownership,theregistrations,transfers, transmissionsanddischargesofmortgagesandthechangeoftheship’s nameandthealterationofitsparticularsmustberecordedintheRegister ofCyprusShips.

Therelevantapplication,ineachcase,mustbemadebyalocalregistered advocateactingonbehalfoftheinterestedpartyandshouldbeaddressed totheRegistrarofCyprusShips.

TherelevantdocumentsmaybedepositedwiththeRegistrarorabroadwith aconsularofficerfollowinginstructionsissuedbytheRegistrar.

TherelevanttransactionmaybeeffectedbytheRegistrarorabroadbya consularofficerfollowinginstructionsissuedbytheRegistrar.Transactions effectedabroadarerecordedintheRegisterasfromthedateandtimethey havebeeneffectedbytheconsularofficer.

8. Other Registry Transactions

39

8.2 Change of ship’s name Whenthechangeofnameisapproved,aperiodof3daysmustlapsefromthe dateofapplicationbeforethenewnamecanbemarkedontheshipandthe ship’sdocumentsbeendorsedtothisend.Itshouldbenotedthatnotwoships registeredundertheCyprusflagmayhaveeitherthesameorcloselysimilar names.

8.3 Deletion of the ship AshipmustbedeletedfromtheRegisterassoonasitsownershipis transferredtoaperson(legalornatural)notqualifiedtoownaCyprusship.

ACyprusshipmayalsobedeletedfromtheRegisteronapplicationofthe owneroftheshipinorderforthesametoberegisteredinaforeignregistry.

AclosedTranscriptofRegistryisissuedbytheRegistrarandaDeletion Certificateisissuedbyaconsularofficerassoonastheregisteredmortgages andotherencumbrancesaredischargedandallpendingmattersaresettled. NotwithstandingtheissueoftheDeletionCertificate,inallsuchcasesof deletion,aclosedTranscriptofRegistryissuedbytheRegistrarmustbe obtained.

8.4 Mortgages-related matters OnceashiphasbeenregisteredintheRegister,eitherprovisionallyor permanently,amortgagecanbecreatedtherebysecuringaloanorother financialobligationsonconditionsagreedtobytheparties.Thecreation ofamortgageonaforeignshipwhichisallowedtoflytheCyprusflagunder theregistrationofabareboatcharterinCyprusisnotallowed.

AmortgageoncecreatedmustbedepositedwiththeRegistrarorwitha consularofficerfollowinginstructionsoftheRegistrar.Whetherdepositedwith theRegistrarorwithaconsularofficer,themortgageisrecordedintheRegister asfromthedateandtimeofitsdepositandremainsanencumbranceonthe shipuntildischargedbythemortgagees.

Iftheownershipoftheshiponwhichamortgagewascreatedisregistered inthenameofacompanywhichhasbeenincorporatedunderthelawsof Cyprus,themortgagewillalsohavetoberegisteredwiththeRegistrarof Companieswithinamaximumperiodof42daysafteritscreation.The mortgagee’ssecurityisthusprotectedinthecaseofliquidationofthe companyinquestion.

Transfersandtransmissionsofamortgagemaybeeffectedbycompletingthe statutoryformoftransferortransmissionandsubmittingittotheRegistraror toaconsularofficerfollowinginstructionsoftheRegistrar.

Inordertodischargeamortgage,amemorandumofdischargewillneedtobe dulyexecutedbythemortgagee.Itwillthenhavetobeattestedanddelivered totheRegistraroraconsularofficerfollowinginstructionsoftheRegistrar.

9.1 Introduction The Merchant Shipping (Fees and Taxing Provisions) Law of 2010addresses allissuesoftaxationandsetsoutthepayabletaxes,feesandcharges.

TheFirstScheduleoftherepealedMerchant Shipping (Fees and Taxing Provisions) Laws of 1992 to 2007,whichisstillinforceuntilitsfullrepealand replacement,setsoutthefeesandtaxesforvariousotherservicesandfor theissueofcertaincertificates.

Thelegislationrequiresthepaymentoftheprescribedfeesandtaxesprior totheregistrationofshipsandfortherelatedtransactionsintheRegister ofCyprusShipsorintheSpecialBookofParallelRegistration.

9. Fees and taxes

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Fees,taxes,chargesorotherfinancialobligationsduecanbepaid,atanytime, toanyoneofthecollectingofficers,inCyprusattheDeputyMinistryor elsewhereandabroadatDiplomaticorConsularMissions.Thiscanbedone bypresentingtothecollectingofficertherelevantnoticeorinvoiceissuedby theDeputyMinistry.Fortheconvenienceoftheinterestedparties,those wishingtomakepaymentsabroadshouldadvisetheDeputyMinistrywhere theywishtomaketherelevantpaymentand,inturn,theDeputyMinistrywill informaccordinglytheDiplomaticorConsularMission.

9.2 Registration fees (1) Thefeesforrecordingtheregistrationofashipotherthanapassengership arecalculatedasfollows:

9.3 Cyprus Registry Maintenance Annual Fee AnannualfeeofEuro300,00ispayableontheregistrationoftheshipand annuallyforsubsequentyearsbythe31stMarchofeachyear.

9.4 Fees for the recording, transfer, transmission or discharge of mortgages (1) Thefeesfortherecordingorthetransferofamortgagearecalculatedas follows:

(2) ThefeesforrecordingofthetransmissionofamortgageisEuro85,43

(3) Nofeeispayablefortherecordingofthedischargeofamortgage.

(2) Thefeesforrecordingtheregistrationofapassengershiparecalculated asfollows:

TheminimumfeeisEuro213,58andthemaximumfeeisEuro5.125,80

TheminimumfeeisEuro51,26

TheminimumfeeisEuro427,15

Gross tonnage EuroFor each gross tonnage unit up to 5.000 0,170860

For each additional gross tonnage unit between 5.001 and 10.000 0,136688

For each additional gross tonnage unit over 10.000 0,068344

Gross tonnage Euro

For each gross tonnage unit up to 10.000 0,034172

For each additional gross tonnage unit over 10.000 0,017086

Gross tonnage Euro

For each gross tonnage unit 0,256290

“Competitive registration costs and fees.”

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9.5 Fees for the transfer or transmission and for the deletion of ships (1) Thefeesforrecordingthetransferortransmissionofashiparecalculated asfollows:

9.6 Other fees and charges

TheminimumfeeisEuro51,26

(2) Nofeeispayablefortherecordingofthedeletionofaship.

Gross tonnage EuroFor each gross tonnage unit up to 10.000 0,034172

For each additional gross tonnage unit over 10.000 0,017086

For the: EuroExamination of an application for the registration of a ship 34,17Examination of an application for change of the ship’s name 34,17Approval and change of the ship’s name 136,69Issuance of or issuance of a replacement of, a certificate of registration 17,09Issuance of Ship’s carving and marking note 17,09Issuance of Transcript of registry 25,63Issuance of initial Radio station licence 20,00Issuance of renewal of Radio station licence 20,00Issuance of consent for bareboat registration 17,09Issuance of Continuous Synopsis Record 34,17Issuance of Minimum Safe Manning Document 42,72Issuance of a 1992 Civil Liability Convention Certificate 60,00Issuance of a 2001 Bunkers Convention Certificate 60,00Issuance of a 2007 Wreck Removal Convention Certificate 60,00Issuance of a Passenger Liability Regulation (EC)No. 392/2009 Certificate 60,00Exemption or Special Arrangement 170,86

TheownerofaqualifyingCyprusshipcarryingoutaqualifyingshippingactivityisrequiredtopaytonnagetaxannuallyandisexemptedfromthepaymentofincometaxundertheprovisionsoftheIncomeTaxLawsinforce.Theannualtonnagetaxiscalculatedonthebasisofship’snettonnageasfollows:

10. Tonnage tax

Net tonnage Euro

For each 100 net tonnage units up to 1.000 36,50For each additional 100 net tonnage units between 1.001 and 10.000 31,03For each additional 100 net tonnage units between 10.001 and 25.000 20,08For each additional 100 net tonnage units between 25.001 and 40.000 12,78For each additional 100 net tonnage units over 40.000 7,30

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Thetonnagetaxispayableontheregistrationoftheshipandannuallyforsubsequentyearsbythe31stMarchofeachyear.

Aqualifyingshipisanyseagoingshipcertificatedundertheapplicableinternationalornationalrulesandregulations.However,certaintypesofships,suchastheonesmentionedbelow,arenotconsideredtobequalifyingships:

- Fishingandfishfactoryvessels; - Vesselsusedprimarilyforsportorrecreation; - InlandWaterwaynavigationvessels; - Harbour,estuaryandriverferriesandtugboats; - FixedOffshoreInstallations(notusedformaritimetransport); - Non-oceangoingtugboats; - Nonself-propelledFloatingCranes;and - FloatingHotels,RestaurantsandCasinos.

Aqualifyingshippingactivityisanycommercialactivitythatconstitutesmaritimetransport.Thedefinitionofmaritimetransportincludesthetraditionalcarriageofgoodsandpassengers,bysea,outsidetheterritorialseaoftheRepublicofCyprus,including,undercertainconditions,towage,dredgingandcable-layingactivities,aswellas,ancillaryactivitiestomaritimetransport.

ThetonnagetaxpayableinrelationtoaCyprusqualifyingshipcarryingoutaqualifyingshippingactivitywhichislaiduporinoperativeforaperiodofatleast3consecutivemonthsmaybereducedby75%undercertainconditions.

TheownerofaCyprusshipwhichcannotbeconsideredasaqualifyingshipandtheownerofashipwhichisnotcarryingactivitieswhichcanbeconsideredaqualifying shippingactivityisrequiredtopayincometaxundertheprovisionsoftheincometaxlawsinforce.

TheGuidetotheCyprusTonnageTaxSystemissuedbytheDeputyMinistryaswellastheDeputyMinistry’swebsiteprovidefurtherdetailsontheCyprusTonnageTaxSystem.

“Comprehensive and favourable Tonnage TaxSystem, approved by the EU”.

Asasynopsisthefollowingfeesandtaxesarepayable:

11. Payable fees and taxes (Synopsis)

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Provisional registration

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Extension of the period of the provisional registration for 3 months

Permanent registration in case the period of provisional registration has not expired

Permanent registration in case the period of provisional registrationhas expired

Permanent registration in case of direct permanent registration

Each year

Bareboat charter registration of a foreign ship

Bareboat charter registration of a Cyprus ship in a foreign registry if the ship is already permanently registered

Bareboat charter registration of a Cyprus ship in a foreign registry if the ship is to be registered first and then bareboat charter registered

Χ1: For six months.Χ2: One half of the registration fees.Χ3: For three months.Χ4: For the period from the expiration of provisional registration up to the end of the calendar year.

Χ5: For the period up to the end of the calendar year.Χ6: For one calendar year.Χ7: The prescribed fees increased by 20%.Χ8: For the entire period of bareboat charter registration in advance.

12.1 Legislative framework Mattersrelatingtomaritimelabour,workingandlivingconditionsandhealth andsafetyatworkonboardCyprusshipsaregovernedbytheMerchant Shipping (Masters and Seamen) Law of 1963, asamendedand the Maritime Labour Convention 2006 (Ratification) and for Matters Connected Therewith Law of 2012, as amended.

TrainingandcertificationofseafarersaregovernedbytheSTCW,78as amendedConventionandtheMerchantShipping(IssueandRecognition ofCertificatesandMaritimeTraining)Law of 2008,asamended.

12. Maritime Labour, Training, Certification and Registration of Seafarers

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TheregistrationofseafarersisgovernedbytheMerchant Shipping (Registration of Seafarers and Seafarers’ Register) Law of 2000,asamended.

Theapplicablelegislation,therelatedcircularsandotherimportant informationareavailableontheDeputyMinistry’swebsite.

12.2 Nationality of crew TheshipboardpersonnelofCyprusshipsmaybeofanynationalityprovided theyareholdersoftherequiredvalidcertificateswhichmustbeissuedor recognisedbytheGovernmentoftheRepublicofCyprus.

12.3 Manning and employment of seafarers InordertofacilitatethemanningofCyprusships,theGovernmentofthe RepublicofCyprushassignedanumberofbilateralagreementsinthefield ofmerchantshippingwithlaboursupplyingcountries.Theseprovidethat thetermsofemploymentofseafarersarethoseapprovedbythecompetent authoritiesand/orseafarers’unionsofthecountryoftheseafarer.Any disputesregardingthesearetoberesolvedexclusivelybythecompetent courtsorauthoritiesofeitherCyprusorofthecountryoftheseafarer.

AlistofthecountrieswithwhichCyprushassignedsuchagreementscan befoundinAppendix2andisavailableontheDeputyMinistry’swebsite.

12.4 Certificates of Competency for Officers and Ratings´ Certificates OfficersandratingsservingonboardCyprusshipsarenotrequiredtohold certificatesissuedbytheGovernmentoftheRepublicofCyprusprovidedthey holdvalidandrecognizedbytheGovernmentoftheRepublicofCyprus certificatesfortheposttheyholdonboard.

ApplicationsfortheCyprusSeafarersIdentificationandSeaService RecordBook(SISRB)andCyprusendorsementattestingtherecognition(EAR) ofnon-Cypruscertificatesofcompetencyissuedbycountrieswhose certificatesofcompetencyarerecognisedbytheRepublicofCyprus,mustbe submittedelectronicallythroughtheon-lineElectronicSeafarer’sApplication System(e-SAS).

Alistofstateswhosecertificatesofcompetencyarepresentlyrecognisedby CyprusisfoundinAppendix1.Thislistisupdatedregularly,thuskindlyvisit theDMSwebsiteforthelatestlist.

12.5 Endorsement attesting the recognition OfficersservingonboardCyprusshipsarerequiredtohold,inadditionto theirnon-Cypruscertificateofcompetency,aCyprusendorsementattesting therecognitionoftheircertificatesinaccordancewiththe1978STCW Conventionasamended.

12.6 Employment of cadets Passengerships,high-speedpassengerships,cargoshipsandhigh-speed cargoshipsengagedoninternationalvoyages,includingshortinternational voyages,arerequiredtoengageforseatrainingcadetswhoarepermanent residentsoftheRepublicofCyprus,ifrequestedbytheDeputyMinistry.

12.7 Seafarer’s Identification and Sea-Service Record Book AllseafarersservingonboardCyprusshipsmustholdaSeafarer’s IdentificationandSeaServiceRecordBookwhichisissuedbytheDeputy Ministry.

12.8 Fees

12.9 Taxation of seafarers Noincometaxischarged,leviedorcollecteduponthesalaryorotherbenefits fromtheemploymentofthemaster,theofficersandothercrewmembersof aCyprusshipwhichisaqualifyingshipwhichisengagedinaqualifying shippingactivity.Informationinrelationtowhatisaqualifyingshipandwhat isaqualifyingshippingactivityareprovidedontheDeputyMinistry’swebsite underthesectionheaded“TheCyprusTonnageTaxSystem”.

For the issue of: EuroSeafarer’s Identification and Sea Service Record Book 51,26Endorsement attesting the recognition 34,17Other STCW related certificates 51,26

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13.1 Double taxation avoidance agreements Cyprushasconcludedanumberofagreementswhosemainpurposeis theavoidanceofdoubletaxationofincomeearnedinanyofthecountries concerned.

Theagreementsalsoincludeprovisionsrelatingto“non-discrimination”, “mutualagreementprocedures”and“exchangeofinformation”.

AlistofthestateswithwhichCyprushasconcludeddoubletaxavoidance agreementsisavailableonthewebsiteoftheMinistryofFinance (www.mof.gov.cy)undertheheading“DoubleTaxationAgreements”.

13. International relations

13.2 Merchant shipping agreements CyprushasconcludedanumberofBilateralAgreementsonMerchant ShippingtheaimofwhichistopromotefriendlyrelationsbetweenCyprus andotherstates,exploreareasofcooperationrelatedtoshippingwhich couldbenefittheeconomicdevelopmentofbothcountriesandfacilitate seabornetradeandemploymentofseafarers.

Someoftheagreementsprovidethattheportfeesandchargeswhichare leviedonashipoftheonepartycallingataportoftheotherpartymustbe thoseleviedontheshipsofthatpartywhencallingatitsport(national treatment).

ThestateswithwhichCyprushassignedsuchagreementsarelistedin Appendix2andareregularlyupdatedontheDeputyMinistry’swebsite.

13.3 Freight tax exemptions InsomecountriesCyprusshipsenjoyfreighttaxexemptionsandsome ofthedoubletaxationavoidancetreatiescaterforsuchexemptions.

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Certificates of Competency Recognised by the Government of the Republic of Cyprus

APPENDIX1

• Algeria • Argentina• Australia • Bangladesh• Belgium • Brazil • Bulgaria • Canada • Cape Verde• Chile • China • Croatia • Cuba • Czech Republic • Denmark • Egypt • Estonia• Ethiopia* • Finland • France • Georgia• Germany • Ghana

• Greece • Hong Kong• Hungary • Iceland • India • Indonesia • Iran• Ireland • Israel• Italy • Jamaica• Japan* • Latvia • Lithuania • Malaysia• Malta • Mexico • Morocco • Myanmar • Netherlands • New Zealand • Nigeria*• Norway

• Pakistan • Peru • Philippines • Poland • Portugal • Republic of Korea • Republic of Montenegro• Republic of Serbia• Romania • Russian Federation • Singapore • Slovakia • Slovenia • South Africa • Spain • Sri Lanka • Sweden • Turkey • Ukraine • United Kingdom • United States • Uruguay• Vietnam

*Countries which are in the process of being assessed by the European Commission.

Appendices

Bilateral Agreements on Merchant Shippingbetween the Government of the Republic ofCyprus and Governments of other States:

APPENDIX2

• Algeria • Bulgaria• China• Cuba• Egypt• Georgia• India • Iran

• Israel• Italy• Jordan• Korea• Latvia • Lithuania • Malta• Mauritius

• Philippines • Poland • Romania• Russian Federation • Sri Lanka • Syria • Ukraine

AgreementswithAntigua&Barbuda,Greece,PakistanandSerbiahavebeensignedandwillenterintoforceaftercompletionofthenecessaryinternalproceduresofthecontractingparties.

AgreementswithEstonia,Germany,Hungary,Lebanon,Libya,Slovenia,SouthAfricaandThailandhavebeeninitialledandtheirsignatureispending.

SHIPPING DEPUTY MINISTRY TO THE PRESIDENTRepublic Of CyprusP.O.BOX 56193, 3305 Limassol, CyprusTel.: +357 25848100 | Fax: +357 25848200Email: maritimeadmin@dms.gov.cyWebsite: www.shipping.gov.cy

THE NETHERLANDSConsulate of the Republic of CyprusWeena 248 (Tower C, 11th Floor)NL - 3012 NJ Rotterdam,THE NETHERLANDSTel.: + 31 10 404 7901Fax: + 31 10 404 7899e-mail: dmsrotterdam@dms.gov.cy

BELGIUMPermanent Representation of the Republic of Cyprus to the European UnionAvenue de Cortenbergh 61 B - 1000 Brussels, BELGIUMTel.: + 32 2 739 5111/ 5184Fax: + 32 2 735 4552e-mail: mstephanides@dms.gov.cy

UNITED STATES OF AMERICAMaritime Office, Consulate General of the Republic of Cyprus13 East 40th Street, New YorkN.Y. 10016, USATel.: + 1 212 686 6016 (ext. 42)Fax: + 1 212 447 1988e-mail: tenusa@aol.com

OVERSEAS MARITIME OFFICES

GREECEMaritime Office, Embassy of the Republic of Cyprus in Greece96 Iroon Polytechniou Ave., 6th Floor, GR 185-36 Piraeus, GREECETel.: + 30 210 4536371/2Fax: + 30 210 4536373e-mail: dmspiraeus@dms.gov.cy

UNITED KINGDOMMaritime Office, Cyprus High Commission13 St. James’s Square, London, SW1Y 4LB, UNITED KINGDOMTel.: + 44 207 321 4100/150/151/154Fax: + 44 207 321 4171e-mail: dmslondon@dms.gov.cy

GERMANYConsulate General of the Republic of Cyprus Rothenbaumchaussee 3, 2nd Floor, D - 20148 Hamburg, GERMANYTel.: + 49 40 410 7497Fax: + 49 40 410 7246e-mail: cyconsulate-hamburg@t-online.de