When the REJA24 system was launched in 2020, hardly anyone anticipated that, within a few years, Poland would become one of the most popular flag states for recreational vessels in Europe. Today, the register already contains well over 100,000 vessels, and a significant proportion of the ship operators are from abroad. The Polish flag is no longer a solution used exclusively by domestic sailors. It has become a recognisable brand on waters around the world.
It is no exaggeration to say that the 2018 Act has been one of the greatest successes of the Polish maritime administration in recent years. Whilst for decades the discussion centred primarily on ways to strengthen the Polish merchant flag, in practice it is the recreational flag that has begun to build Poland’s profile in marinas across the Mediterranean, the Atlantic and the North Sea. After all, every yacht flying the white-and-red flag is an ambassador for the country.
Success, however, comes at a price.
The scale of interest in the Polish flag has led to a situation where the legislator has concluded that the current registration model requires revision. Three main arguments recur in the justification for the draft amendment to the Act on the Registration of Yachts up to 24 metres in length currently under consideration:
- a lack of up-to-date data on ship operators,
- limited capacity to fulfil the obligations of the flag state,
- a growing number of cases involving the use of vessels flying the Polish flag for criminal activities abroad.
As a result, a draft amendment has been drawn up, which is currently being considered by parliament. This draft differs from the version originally proposed. During the consultation and legislative process, some of the proposals put forward by the yachting industry were considered. This does not alter the fact that the proposed reform represents the most significant change to the rules governing the Polish flag since the establishment of REJA24.
The end of lifetime registration
The public debate today focuses primarily on surveys and changes to fee levels. Paradoxically, however, the most far-reaching change may turn out to be something entirely different: a move away from the concept of a lifetime registration document.
Until now, the Polish flag has operated under a very simple model. Provided the ship had been registered correctly, the document remained valid indefinitely. Of course, there was still an obligation to report certain changes, but the mere fact of holding the document did not require periodic renewal. It was precisely this simplicity that was one of the reasons for choosing the Polish register. The amendment departs from this idea almost entirely.
Every five years, the owner will have to confirm the validity of the document and that the details held in the register are up to date. This does not mean that the vessel must be re-registered. The intention is for this to be an administrative procedure enabling the state to verify whether the vessel still exists, who owns it and whether the ship operator’s contact details remain up to date.
In ideological terms, it is hard to deny that this solution is rational. A flag state should know who is sailing under its flag. The problem, however, lies elsewhere.
Over the past few years, thousands of ship operators have made business and personal decisions based on the model of documents being valid indefinitely. For this group of ship operators, the amendment will not be a “clarification of administrative obligations”, but a change to the rules after they have already entered the system. This is where questions begin to arise about the limits of the legislator’s interference in existing legal relationships and the sphere of so-called “legitimate expectations”. There is no doubt that this debate will resurface in the future.
Suspension of a document as an intermediate step
One consequence of the new model is the possibility of suspending the validity of a registration document. Until now, the REJA24 system was based on a much simpler mechanism: a vessel was either entered in the register or deleted from it. The amendment introduces an intermediate solution, allowing the administration to respond to a failure to update data or other irregularities without having to immediately remove the vessel from the register.
Suspension will take place, amongst other things:
- in the event of a failure to fulfil the obligation to update data,
- where discrepancies are found between the information contained in the register and the actual situation,
- in connection with a breach of obligations arising from maritime safety regulations.
It is worth bearing in mind that the suspension will not merely be an administrative procedure recorded in the system. The draft provides for a ban on sailing and operating the vessel whilst the document is suspended. This means that a ship operator who fails to comply with the obligation to update their details may effectively be prevented from using the vessel legally until the details in the register have been brought up to date.
Deletion from the register as a last resort
The amendment significantly expands the list of circumstances leading to the removal of a vessel from the register. This primarily concerns:
- failure to update data,
- failure to fulfil obligations following the suspension of a document,
- failure to respond to requests from administrative authorities or authorised organisations,
- certain cases relating to maritime safety.
In practice, this marks a further departure from the philosophy that underpinned the creation of REJA24. For years, the Polish flag was seen as a simple, stable and virtually maintenance-free solution. The proposed regulations provide for a more active relationship between the ship operator and the register, through regular confirmation that the data is up to date.
For most ship operators, this should not be a problem. An owner who keeps their details up to date and responds to correspondence from the authorities is unlikely ever to face suspension or deregistration proceedings. This does not alter the fact that the new obligations will also apply to owners who obtained Polish registration under entirely different legal circumstances, based on documents valid indefinitely and minimal contact with the register.
In my view, the direction of these changes is reasonable. The flag state should have up-to-date information on vessels flying its flag and effective means of verifying that information.
However, the final assessment of the reform will depend on whether the new obligations remain proportionate and do not become a source of excessive costs or red tape for ship operators who have placed their trust in the Polish registration system as it currently stands.
Standardisation of HIN, WIN and INI numbers
One of the less publicised but highly practical changes is the clarification of the rules for identifying vessels. The draft moves away from an approach focused solely on numbers assigned in accordance with the European HIN, CIN and WIN standards, allowing other identification numbers with which the hull has been marked by the manufacturer to be disclosed in the register.
This is of particular significance for vessels from outside the European Union. The draft’s justification explicitly states that the aim of the amendment is to enable the register to include numbers assigned by manufacturers operating outside the system of standards set out in the EU Recreational Craft Directive, including, amongst others, US manufacturers. This solution responds to the requests put forward by the ship operators’ community and the insurance market.
The amendment also clarifies the rules for assigning an individual identification number (INI). If a vessel does not have an identification number within the meaning of the Act, the registering authority will assign it an INI, which must be permanently affixed to the hull. The draft provides that the existing manufacturer’s marking will not be removed or replaced. In the case of vessels with an identification number other than HIN, CIN or WIN, the new INI number is to be affixed in the immediate vicinity of the existing marking, whilst ensuring that the latter remains visible. This means that both numbers will co-exist on the hull and in the registration documentation.
Although these changes are of a technical nature, in practice they may make it easier to identify vessels, organise documentation and reduce some of the problems that arise in connection with registrations, changes of ownership, insurance or the verification of a vessel’s history.
Ship operator’s data subject to greater administrative oversight
One of the less noticeable consequences of the amendment is a significant expansion of the scope of data collected by the register. At present, many ship operators view REJA24 primarily as a tool for confirming a vessel’s ownership. The proposed regulations, however, aim to create a database enabling the authorities to maintain ongoing contact with the vessel’s owner or operator.
In practice, this means an obligation to provide a greater amount of identifying information, including, amongst other things, nationality, details of co-owners’ shares in the vessel’s ownership, and, in certain cases, the ship operator’s email address and telephone number. The obligation to update this information whilst the vessel is in service will also be extended.
From the administration’s point of view, this is one of the fundamental principles underpinning the entire reform. The Ministry has repeatedly emphasised that one of the problems with the current system is the lack of an effective means of contacting some ship operators who operate vessels outside Poland’s borders. The new regulations are intended to remedy this situation.
For a foreign ship operator, this primarily means the need to manage their presence in the register more actively. At the same time, it can also bring tangible benefits. Up-to-date contact details and better organised ownership documentation enhance the security of the vessel’s trade, facilitate the processing of changes in ownership and reduce the risk of problems relating to the identification of the ship operator by the administration or financial institutions.
We invite you to read the next article now – The Polish recreational flag following the amendment. Key changes to REJA24, Part 2 – in which I discuss, among other things, the initial survey, one of the most significant proposed changes.