RUSSIAN INTERNATIONAL REGISTER OF SHIPS (SECOND REGISTER)

The idea of such Register has been around for past decade. However it was not until the end of 2005 that the Second Register was created. One would not find a law which would directly regulate the creation and operation of the Second Register. The Russian International Register of Ships  was created by amending various provisions in legislative acts (Merchant Shipping Code, Customs Code, Tax Code...). The relevant law is - Federal Law “On Amendments to Some Legislative Acts of the Russian Federation as to Creation of Russian International Register of Ships” No.168-FZ,  was signed by the President of Russian Federation on 20 December 2005. Favourable tax and customs regimes are provided for vessels Registered in the Second Register.0% import duty is implied; 0% VAT; 0% tax on profits an organization from profits earned from the exploitation of  vessel registered in the Second Register; 0% tax on means of transport; 0% tax on assets of an organization (with respect to the registered vessel).

As stated above, the law was signed on the 20.12.2005. The list of ports where registration in the Second Register is accomplished had been approved on 25.04.2006. Finally, the new Rules of Registration of vessels in marine ports, which prescribe the procedure of registration in the Second Register, were approved by the Order of the Ministry of Transport on 21 June 2006. However some organizational matters and practical issues of registration are yet unclear.

The policy of the Ministry of Transport is to facilitate and accelerate registration of vessels in the Second Register. The conference held on the 26 September was dedicated specifically to organizational issues of registration, issues of cooperation of the authorities (Harbour Masters, Tax, Customs authorities) and issues of uniform application of provisions of the law by the regional authorities.

It was resolved at the conference that  for purposes of uniform application of provisions of the named law  a Government Regulation shall be drafted regarding custom clearance of the imported vessels. Fur purposes of optimization of the process of registration of vessels "Rostransnadzor" shall draft Methodical Recommendations defining the ability of the Harbour Masters to preliminary consider the question of registration on the basis of copies of documents, with further immediate registration upon receipt of the originals. It was also decided to facilitate and minimize the term of issue of a radio station license, as current term and procedure is inconvenient for the shipowners.  The Ministry of Transport declared that it would facilitate the registration of vessels in the Second Register.