Today, we are continuing the thread from last week on the planned changes to the registration of yachts flying the Polish flag. First, we encourage you to read the first part of our series on the proposed changes to REJA24 – The Polish recreational flag following the amendment. Key changes to REJA24, Part 1 .
Preliminary inspection. The foundation of the new Polish flag supervision system
The most distinctive feature of the amendment is the introduction of a preliminary inspection. This inspection is intended to serve as a tool enabling the flag state to carry out a genuine verification of vessels applying for Polish registration.
This is not a traditional technical inspection of the sort familiar from procedures for obtaining or renewing a Safety Certificate. The preliminary inspection is mainly for identification and administrative purposes, whereas Safety Certificate inspections are designed to assess whether commercial yachts and recreational vessels over 15 metres in length meet safety requirements.
The draft bill does not, therefore, create a new category of technical inspections. Its primary aim is to verify the documentation, identify the vessel and its owner, and confirm that the details provided in the application are accurate.
According to the draft, the inspection is to include, amongst other things:
- verification that the data contained in the application is consistent with the documentation,
- identification of the vessel,
- verification of the hull identification numbers,
- checking the vessel’s basic parameters,
- assessment of the vessel’s general condition in relation to the declared intended use.
The person registering the vessel will no longer be able to base the process solely on submitting documents to the registration authority. They will have to demonstrate that the vessel exists and that the documentation accurately reflects reality.
Who will carry out the inspections
In our view, this is one of the most significant issues raised by the reform.
The draft bill stipulates that the inspection is to be carried out by an “authorised recognised organisation”, i.e. an entity authorised by the minister responsible for maritime affairs to perform specific maritime administration tasks relating to the inspection and certification of yachts up to 24 metres in length.
The problem is that, at present, the only organisation holding such authorisation is Polish Register of Shipping (PRS). This was highlighted both during public consultations and in the positions taken by industry organisations.
The Ministry replies that the regulations do not create a statutory monopoly for PRS, as other entities may also apply for the relevant authorisations. That may well be the case, but for the time being it must be assumed that PRS will be the sole entity responsible for carrying out the new obligations.
This is a very important issue from a practical point of view.
The success of the entire reform will depend not on the amended regulations, but on whether the organisation carrying out the inspections will be able to handle several thousand cases a year without creating queues lasting several months. In my view, this will not be possible without delegating powers to local inspectors in the country where the vessel is located. This issue has been raised on numerous occasions by representatives of the yachting industry. We believe that this problem is not being given sufficient attention, which could lead to serious disruption to the functioning of the Polish flag. And if that happens, the system will need to be revised.
On-site or remote inspection
One of the positive changes that has emerged during the legislative process is the possibility of carrying out some inspections using electronic means of communication. This applies primarily to vessels holding a CE declaration of conformity. The final decision will rest with the organisation carrying out the inspection.
This solution is of great importance to ship operators who maintain vessels outside Poland.
If an inspection required the inspector’s physical presence, the costs of the system could very quickly rise to a level that would be difficult for owners of recreational craft to accept. Allowing for remote procedures should be seen as a step in the right direction. However, much will still depend on how the organisation carrying out the inspections applies the new regulations in practice.
Who will be subject to the inspection requirement
The requirement has been limited primarily to vessels that are not Polish-owned and are seeking to obtain Polish nationality. The burden of the new obligations will fall mainly on foreign ship operators.
Will the Polish flag continue to be attractive to foreign ship operators
In our opinion, yes. Despite the proposed changes, the Polish flag will continue to offer advantages that have attracted non-Polish ship operators in recent years, namely:
- operation within the legal framework of a European Union member state,
- the modern REJA24 register,
- a widely recognised registration document, and
- the possibility of carrying out a significant proportion of procedures remotely.
Importantly, the legislator did not decide to close the register to foreign ship operators or smaller vessels, as had originally been proposed. Poland remains one of the few European countries offering broad access to its flag to owners who are not established or resident in the country.
However, the philosophy behind the system’s operation is changing. The Polish flag is to be not only accessible, but also more credible. Better identification of ship operators, current data and the ability to fulfil the flag state’s obligations more effectively are intended to strengthen the reputation of the Polish register on the international stage. For many owners, this means greater certainty in business dealings, more predictable procedures and an additional selling point when selling, financing or insuring a vessel.
Nevertheless, one cannot overlook the fact that the amendment introduces a clear distinction between the situations of Polish and foreign ship operators. It is primarily foreign owners who are to be subject to additional obligations, including preliminary inspections and higher fees associated with obtaining and maintaining Polish registration. In this respect, the draft bill departs from the model which, in recent years, has been one of the cornerstones of the Polish flag’s success.
A more reliable flag is also an advantage when selling a vessel
In the debate on the amendment, there is much talk of new obligations, but less about the benefits of a more reliable register. Meanwhile, for many ship operators, the reliability of data on a vessel is important, as it helps when selling it.
Up-to-date owner details, more comprehensive vessel identification mechanisms and periodic validation of documents can boost confidence in the Polish registration document. For the buyer, this means less risk associated with the vessel’s ownership history and greater certainty regarding the validity of the data held in the register. This may influence the ease and speed of transactions, as well as the price of yachts.
What does this mean for vessels already registered in REJA24
This is one of the most important questions asked by foreign ship operators. The proposed amendment does not apply solely to new registrations. The legislator has expanded the provisions to cover vessels that have been flying the Polish flag for many years.
Registration documents issued before the new regulations come into force will not lose their validity on the date the Act comes into force. Owners of registered vessels will be granted a transitional period, the length of which will depend on the date of registration in the REJA24 system.
The amendment sets out the following timetable:
- 3 months from the date the Act comes into force for vessels registered by 31 December 2021,
- 6 months for vessels registered between 1 January 2022 and 28 February 2023,
- 9 months for vessels registered between 1 March 2023 and 31 August 2023,
- 12 months for vessels registered between 1 September 2023 and 29 February 2024,
- 15 months for vessels registered between 1 March 2024 and 31 August 2024,
- 18 months for vessels registered between 1 September 2024 and 28 February 2025,
- 21 months for vessels registered between 1 March 2025 and 28 February 2026,
- 24 months for vessels registered later.
The owner’s first obligation will be to submit an application to confirm the validity of the registration document and the accuracy of the data held in the register.
For vessels not under the Polish ownership, a preliminary inspection will be required, along with the submission of the documentation from that inspection. This aspect is currently of greatest interest to foreign ship operators, as the obligation also applies to vessels that were registered under Polish flag many years ago, under the conditions in force at the time of registration.
If the ship operator fails to fulfil the new obligations by the deadline, the consequences will depend on the type of vessel. The registration may be marked as suspended, followed by the expiry of the registration document and the removal of the vessel from the register.
From the perspective of a foreign ship operator, it is important to note that lengthy transition periods have been provided for and that the entire process has been spread out over time. Owners of vessels already registered in REJA24 will have plenty of time to prepare the necessary documentation, update their details and plan the initial survey.
This illustrates the philosophy behind the reform. The aim is not to remove vessels from the register on a mass scale, but to gradually ensure that the administration has up-to-date data on owners and ship operators flying the Polish flag.
It remains to be seen whether these new obligations will be fulfilled efficiently and without excessive costs for ship operators who maintain their vessels outside Poland. We will only know the answer to this question once the Act comes into force.
Summary
The final form of the reform has not yet been decided. The draft bill remains at the parliamentary stage. Some of the industry’s proposals have been taken into account during the legislative process.
Ultimately, it will be practice that determines the attractiveness of the Polish flag. The issue of a significant increase in administrative fees for registration remains uncertain. The form the regulations will take is still in doubt, as work on the draft bill is ongoing in the Sejm.
If the new procedures remain efficient, predictable and cost-effective, Poland has every reason to maintain its position as one of the most competitive and recognisable recreational registers in Europe. Its advantage will no longer lie solely in simplicity, but in a combination of accessibility, European credibility and the growing prestige of the flag state.