I. Chartering-out:

The Bareboat Charter Agreement is defined by the Maltese Merchant Shipping Act to be "the contract for the lease or sub-lease of a ship, hereinafter referred to as charter, for a stipulated period of time, by virtue of which the charterer shall acquire full control and complete possession of the ship, including the right to appoint her master and crew for the duration of the charter but excluding the right to sell or mortgage the ship."

According to Section 84A (1) of the Merchant Shipping Act:

• "compatible registry " means a ship registry of a foreign State declared by the Minister to be a compatible registry in terms of section 84B of this Act;
• "underlying registry" means the registry of the State in which the owners of a ship are registered as owners and to which jurisdiction and control will revert upon termination of the bareboat charter registration. 

A vessel registered in the Maltese Registry may be bareboat charter registered in a foreign registry if the Registrar-General gives his consent in writing thereto.

A vessel is eligible for bareboat chartering-out if the following requirements are fulfilled: 

1.the ship is registered as a Maltese ship under Part II of the Merchant Shipping Act;  

2.the bareboat charter registry where the ship is to be registered is a compatible registry;  

3.the following documents are submitted to the Registrar-General, besides the normal registration procedures if the vessel is not already registered under Malta flag:

(a) an application for bareboat charter registration in a foreign registry made by the owners containing such information as may be required by the Registrar-General.  This information includes, but is not limited to, the name of the charterers, the proposed registry, name and full style address (including telefax/e-mail address) of the Registrar/s of the proposed registry and the duration period of bareboat charter;

(b) the consent in writing to such registration of all registered mortgagees;

(c) a written undertaking by the owners to surrender the certificate of Maltese registry within 15 days from entry into the bareboat charter registry;

(d) a written undertaking by the charterer that the Maltese Flag shall not be hoisted during the period of bareboat charter registration;

(e) a copy of the bareboat charter.

The owners must produce to the registrar any amendments or modifications to the bareboat charter within 30 days of such amendments or modifications being effected. 

The name of a Maltese ship bareboat charter registered in a foreign registry may be changed with the written permission of the Registrar-General only if such change is being effected also in the bareboat charter registry. 

The registration of a Maltese ship in a foreign bareboat charter registry will be declared as null and void in the event that this is not made in accordance with the provisions of the Merchant Shipping Act.

Upon the bareboat charter registration of a Maltese ship in a foreign registry the owners are obliged to immediately notify the registrar thereof, and within 30 days surrender to the registrar the certificate of Maltese registry and deliver to the registrar a transcript or an extract of the foreign bareboat charter registration. The registrar, if satisfied that such registration has been effected according to the provisions of the Merchant Shipping Act, makes an entry thereof in the register of the said ship.

The owners of a Maltese ship bareboat charter registered in a foreign registry must comply with all the provisions of the Merchant Shipping Act as if the ship were not so registered in the foreign registry.

The home port of a Maltese ship bareboat charter registered in a foreign registry is that of the bareboat charter registry.  The owners must, within 15 days from the entry into the foreign bareboat charter registry, make and deliver to the registrar a declaration to the effect that the name of the foreign home port has been marked on the stern of the ship in lieu of the name Valletta.  This declaration is the Carving and Marking Note, which is issued by the Registrar once consent to the bareboat charter is granted.  This is to be completed by a recognised surveyor or a Maltese Consul. 

A Maltese ship bareboat charter registered in a foreign registry, notwithstanding such registration, continues to be subject to the payment of all the fees set out in respect of Maltese ships.

A Maltese ship, bareboat chartered registered in a foreign registry, is required to be issued with certificates in terms of  international conventions to which Malta is a party. Such certificates are issued under the authority of the Government of the bareboat charter registry, provided that where the State of the bareboat charter registry is not a party to such convention the certificate may be issued under the authority of the Government of Malta.

Notwithstanding a bareboat charter registration of a Maltese ship in a foreign registry, all matters with respect to title over the ship, mortgages and encumbrances continue to be governed by Maltese law. The registration of any mortgages or encumbrances in the bareboat charter registry is null and void.

 II. Termination of Chartering Out:

Upon the termination of the bareboat charter registration, the owners must immediately notify the registrar of the closure or lapse of the bareboat charter registration in a foreign registry, and,  

1. The registrar makes an entry thereof in the register, and the ship thereupon is again subject to all the provisions of Maltese law.

2. Within 30 days from the termination of such registration the owner must make and deliver a declaration to the registrar that the certificate of bareboat charter registration has been surrendered to the foreign registry, and thereupon the registrar delivers again to the owners the certificate of registry which had been surrendered to him for the period of the bareboat charter registration.

3. Within 30 days from the termination of such registration the owners must deliver to the registrar a transcript or an extract of register showing that the bareboat charter registration has been cancelled. 

The Registrar-General may withdraw the consent for bareboat charter registration of a ship in a foreign register if any of the applicable provisions of the Merchant Shipping Act are not complied with. The consent must be withdrawn if: 

1. the Minister responsible for shipping, in the national interest or in the interest of Maltese shipping and after giving the owners and the charterers of the ship a reasonable opportunity to make representations, has ordered the Registrar-General to withdraw his consent;

2. any of the conditions required to be fulfilled for obtaining the consent is not so fulfilled;

3. the charter terminates or is terminated by any of the parties to it. 

Upon the withdrawal of the consent of the Registrar-General the registrar informs the appropriate authorities of the bareboat charter registry, the owners, the charterers and the mortgagees, if any, of such withdrawal, and the bareboat charter registration is terminated.

 PERMANENT REGISTRATION FOR BAREBOAT CHARTER OUT

The provisional registration is initially valid for six (6) months and may be extended for another maximum period of six (6) months.

In order to affect the permanent registration, the following documents are required:

1. Deletion Certificate (in original) from last port of registry (within one month). 

2. Bill of Sale (within one month and in original - which has to be dated between the date of formation of the company and the date of vessel’s provisional registration).
If the vessel is newly built and her first registry is Malta, then the Deletion Certificate (item 1) and Bill of Sale are replaced by a Builder’s Certificate (in original) made to the order of the Company dated between the date of formation of the company and the date of vessel’s registration (these are required within one month).

3. Original Certificate of Survey (within six months), issued on behalf of the Malta Government.  

4. Copy of the International Tonnage (1969) Certificate (within six months) issued on behalf of the Malta Government. 

5. Class Certificate showing that vessel is still in class. 

6. If the original Non Operational Provisional Certificate has been released by the Merchant Shipping Directorate (formerly Malta Maritime Authority), an undertaking letter addressed to them to return the Non Operational Provisional Certificate within one month of the release of the Non Operational Permanent one would be required.  It is customary for the original Non Operational Provisional Certificate to be retained at the Merchant Shipping Directorate (formerly Malta Maritime Authority) while a copy is handed over.  In this case the undertaking letter would not be required.

As per S.84f (G) of the Maltese Merchant Shipping Act, the duration of the Charter-out registration shall be for a period not exceeding the duration of the Bareboat Charter or the expiry date of the present registry (if any) whichever is shorter but in no case for a period not exceeding two (2) years.

The certificate of registry is renewable every year by paying the annual fees and submitting the relevant documentation as usual. On expiry of duration of the bare boat charter (as per above paragraph) the following are required:-

1. Addendum to the Charter Party Agreement
2. Consent from underlying registry