The Hong Kong Shipping Register was set up in 1990 under the Hong Kong Merchant Shipping (Registration) Ordinance, administered by the Marine Department (Hong Kong). Since the transfer of sovereignty by the United Kingdom in 1997, Hong Kong is authorised under the Basic Law by the Government of the People’s Republic of China, using the name “Hong Kong, China” to maintain a separate ship registration system.
In April 1999, the Hong Kong Government launched some new measures to improve the ship registration system in Hong Kong. By cooperation of government and shipping industry, the total tonnage of ship registry in Hong Kong has reached over 129 million gross tons with over 2,400 vessels registered in May 2020.
As of 2020 the Hong Kong Ship Register is the world’s fourth largest ship register, and the world’s largest national flag register. [1] [2]
The first time registration fee for a ship is determined according to its Gross Tonnage (GT).
First Registration Fee (based on GT) | |
---|---|
Gross Tonnage of Ships | Registration Fee (HK$) |
500GT or below | 3,500 |
over 500GT | 15,000 |
The annual tonnage charge for a ship is determined referring to its Net Tonnage (NT).
The minimum annual tonnage charge is HK$1,500 with every tonne above 1000 NT costing an extra HK$3.5 until 15,000 NT, whereby the rate lowers to HK$3 per tonne thereafter. The charge would not exceed HK$77,500.
Annual Tonnage Fee (Example) | |
---|---|
Net Tonnage of Ships | Fee (HK$) |
1,000 or below | 1,500 |
5,000 | 15,500 |
10,000 | 33,000 |
15,000 | 50,500 |
20,000 | 65,500 |
24,000 or upwards | 77,500 |
Annual Tonnage Charge (ATC) Reduction Scheme [3]
Since February 2006, the Annual Tonnage Charge (ATC) Reduction Scheme has been enacted to reduce the long term cost for ship owners, whereby, for every two years of the qualifying period, satisfying:
-the registered ship owner would have the right to enjoy a six months ATC reduction for the following year in general.
A ship is eligible for registration if the ship:
There are 3 types of registration: Full Registration, Provisional Registration and Bare Boat Charter Registration. The registration procedures only requires the submission of:
After a ship is on the Hong Kong shipping register under full or provisional registration, mortgages against the ship can be registered.
Agents for HK flag registration include:
Hong Kong registered ships can enjoy about 30% preferential port dues in mainland China ports since January 2000. In order to reduce port and light dues for Hong Kong registered ships, HKSAR expects to sign up agreements with other countries which have a two-tier charging system.
Income derived from the international trade of Hong Kong registered ships is exempted from profits tax. HKSAR has also entered into bilateral double taxation relief agreements with 40 countries which include:
Agreement for the avoidance of double taxation (DTA):
Denmark, Germany, Netherlands, Norway, Singapore, Sri Lanka, United Kingdom, United States;
Reciprocal tax exemption (RTE):
Chile, Korea, New Zealand;
Comprehensive DTA (CDTA):
Austria, Belgium, Brunei, Canada, Czech, France, Guernsey, Hungary, Indonesia, Ireland, Italy, Japan, Jersey, Korea, Kuwait, Liechtenstein, Luxembourg, Mainland China, Malaysia, Malta, Mexico, Netherlands, New Zealand, Portugal, Qatar, Romania, South Africa, Spain, Switzerland, Thailand, United Arab Emirates, United Kingdom, Vietnam
The Flag State Quality Control (FSQC) System is based on an information system to monitor the quality of Hong Kong registered ships. By analyzing and collecting the information, unqualified conditions of a ship will be identified for Flag State inspection.
The Pre-registration Quality Control (PRQC) System involves the Marine Department which will inspect a ship’s condition before it is registered in Hong Kong. The ship should meet all safety and pollution prevention standards announced by International Maritime Organization.
The chief executive of the Hong Kong Special Administrative Region is the representative of the Hong Kong Special Administrative Region and head of the Government of Hong Kong. The position was created to replace the office of governor of Hong Kong, the representative of the monarch of the United Kingdom during British rule. The office, stipulated by the Hong Kong Basic Law, formally came into being on 1 July 1997 with the handover of Hong Kong from the United Kingdom to the People's Republic of China.
Tonnage is a measure of the cargo-carrying capacity of a ship, and is commonly used to assess fees on commercial shipping. The term derives from the taxation paid on tuns or casks of wine. In modern maritime usage, "tonnage" specifically refers to a calculation of the volume or cargo volume of a ship. Although tonnage (volume) should not be confused with displacement, the long ton of 2,240 lb is derived from the fact that a "tun" of wine typically weighed that much.
The Merchant Navy is the maritime register of the United Kingdom and comprises the seagoing commercial interests of UK-registered ships and their crews. Merchant Navy vessels fly the Red Ensign and are regulated by the Maritime and Coastguard Agency (MCA). King George V bestowed the title of "Merchant Navy" on the British merchant shipping fleets following their service in the First World War; a number of other nations have since adopted the title. Previously it had been known as the Mercantile Marine or Merchant Service, although the term "Merchant Navy" was already informally used from the 19th century.
Flag of convenience (FOC) is a business practice whereby a ship's owners register a merchant ship in a ship register of a country other than that of the ship's owners, and the ship flies the civil ensign of that country, called the flag state. The term is often used pejoratively, and although common, the practice is sometimes regarded as contentious.
China Ocean Shipping Company, Limited, formerly China Ocean Shipping (Group) Company, commonly known for its abbreviated name COSCO Group, or simply, COSCO, is one of the major holding companies for COSCO Shipping, one of the world's largest shipping companies. COSCO Shipping was formed in January 2016 by a merger of COSCO and China Shipping Group as one conglomerate.
The Port of Hong Kong located by the South China Sea, is a deepwater seaport dominated by trade in containerised manufactured products, and to a lesser extent raw materials and passengers. A key factor in the economic development of Hong Kong, the natural shelter and deep waters of Victoria Harbour provide ideal conditions for berthing and the handling of all types of vessels. It is one of the busiest ports in the world, in the three categories of shipping movements, cargo handled and passengers carried. This makes Hong Kong a Large-Port Metropolis.
The law of the Hong Kong Special Administrative Region has its foundation in the English common law system, inherited from being a former British colony and dependent territory. There are several sources of law, the primary ones being statutes enacted by the Legislative Council of Hong Kong and case law made by decisions of the courts of Hong Kong.
The Department of Justice (DoJ), is the department responsible for the laws of Hong Kong headed by the Secretary for Justice. Before 1997, the names of the department and the position was the Legal Department (律政署) and Attorney General (律政司) respectively. The Department of Justice's main value is the rule of law. This law is the law that has brought Hong Kong the success of being known as the world's international financial centre. Their leading principle consists of the quote “One country, Two Systems”. The Department of Justice is very important in the legal system in many ways. One being that they give legal advice to other departments in the government system. “drafts government bills, makes prosecution decisions, and promotes the rule of law”. Its main goal is to ensure that Hong Kong's status as the main centre for legal services is enhanced and maintained.
The Hong Kong Special Administrative Region of the People's Republic of China passport is a passport issued only to permanent residents of Hong Kong who also hold Chinese citizenship. In accordance with the Basic Law of the Hong Kong Special Administrative Region, since the transfer of sovereignty on 1 July 1997, the passport has been issued by the Immigration Department of the Government of Hong Kong under the authorisation of the Central People's Government of the People's Republic of China. As the official languages of Hong Kong are Chinese and English, the passport is printed bilingually in both Chinese and English.
The Hong Kong identity card is an official identity document issued by the Immigration Department of Hong Kong. According to the Registration of Persons Ordinance, all residents of age 11 or above who are living in Hong Kong for longer than 180 days must, within 30 days of either reaching the age of 11 or arriving in Hong Kong, register for an HKID. HKIDs contain amongst others the name of the bearer in English, and if applicable in Chinese. The HKID does not expire for the duration of residency in Hong Kong.
Gross tonnage is a nonlinear measure of a ship's overall internal volume. Gross tonnage is different from gross register tonnage. Neither gross tonnage nor gross register tonnage should be confused with measures of mass or weight such as deadweight tonnage or displacement.
The flag state of a merchant vessel is the jurisdiction under whose laws the vessel is registered or licensed, and is deemed the nationality of the vessel. A merchant vessel must be registered and can only be registered in one jurisdiction, but may change the jurisdiction in which it is registered. The flag state has the authority and responsibility to enforce regulations over vessels registered under its flag, including those relating to inspection, certification, and issuance of safety and pollution prevention documents. As a ship operates under the laws of its flag state, these laws are applicable if the ship is involved in an admiralty case.
Under Article 108 of the Basic Law of Hong Kong, the taxation system in Hong Kong is independent of, and different from, the taxation system in mainland China. In addition, under Article 106 of the Hong Kong Basic Law, Hong Kong has independent public finance, and no tax revenue is handed over to the Central Government in China. The taxation system in Hong Kong is generally considered to be one of the simplest, most transparent and straightforward systems in the world. Taxes are collected through the Inland Revenue Department (IRD).
A merchant navy or merchant marine is the fleet of merchant vessels that are registered in a specific country. On merchant vessels, seafarers of various ranks and sometimes members of maritime trade unions are required by the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) to carry Merchant Mariner's Documents.
In 1961 China established a state-run maritime shipping company and subsequently signed shipping agreements with many countries, laying the foundation for developing the country's ocean transport. That organization developed into the present-day China Ocean Shipping (Group) Company (COSCO). The Chinese government also invested heavily in water transport infrastructure, constructing new ports and rebuilding and enlarging older facilities.
Net tonnage is a dimensionless index calculated from the total moulded volume of the ship's cargo spaces by using a mathematical formula. Defined in The International Convention on Tonnage Measurement of Ships that was adopted by the International Maritime Organization in 1969, the net tonnage replaced the earlier net register tonnage (NRT) which denoted the volume of the ship's revenue-earning spaces in "register tons", units of volume equal to 100 cubic feet (2.83 m3). Net tonnage is used to calculate the port duties and should not be taken as less than 30 per cent of the ship's gross tonnage.
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