TO ALL TANKER MEMBERS

Dear Sirs,

BLUE CARDS
CLC CERTIFICATES
1969 AND 1992 CIVIL LIABILITY CONVENTIONS

Members are referred to our Circular dated January, 1998. As stated in that Circular from midnight on 15 May 1998 two separate regimes will be in force: The 1969 Civil Liability Convention (CLC) and the 1992 CLC. It may therefore be necessary for ships to carry on board both a 1969 and a 1992 CLC certificate after that date.

A list of States which will be parties to the 1992 CLC as from midnight on 15 May 1998 is attached as Annex 1. A list of States which will be parties to the 1969 CLC as from midnight on 15 May is attached as Annex 2.

Tankers flying the flags of 1992 CLC States or the flags of States which are not parties to either the 1969 or the 1992 CLC

This section is only applicable to ships flying the flags of a State party to the 1992 CLC (see Annex 1) or of States which are not parties to either 1969 or 1992 CLC, i.e. States which are not list in Annex 1 or Annex 2.

IMO Legal Committee discussions

The problem of certificates was discussed at the Legal Committee of the International Maritime Organisation (IMO) when it met in London on 20-24 April 1998. At the end of the week the Committee issued the attached circular (Annex 3). The Committee recommends that:

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a. where legally possible in accordance with their national law, States parties to the 1969 CLC accept CLC certificates issued by States parties to the 1992 CLC as proof that a ship has insurance cover as required by the 1969 CLC; and

b. States parties to the 1969 CLC continue the established practice of issuing 1969 CLC certificates to ships flying the flag of non-party States and accept such certificates issued by other States parties to the 1969 CLC.

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Effect of IMO Legal Committee Recommendations

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A. Some 1969 CLC States have in place legislation which will not permit them to accept 1992 CLC certificates in place of 1969 CLC certificates e.g. Canada and Italy. It will be necessary when calling at these countries for ships to have on board a 1969 CLC certificate. Panama has indicated that it would be prepared to provide 1969 CLC certificates for 1992 CLC flag ships. These certificates can be obtained in exchange for a blue card addressed to the Panamanian Registry.

It is likely that other 1969 CLC States will also be prepared to issue certificates.

B. Some 1969 CLC States have indicated that they would not insist on the carriage on board of a 1969 CLC certificate provided that the ship carries on board a 1992 CLC certificate and a 1969 CLC blue card addressed to a 1969 flag state. Malaysia is one such State.

C. Some 1969 CLC States have agreed to accept 1992 CLC certificates as evidence of 1969 CLC liabilities, e.g. Indonesia.

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In order to ensure world-wide trading, ships flying the flag of 1992 CLC States and ships flying the flag of a State which is not party to the 1969 CLC are recommended to carry on board the following:

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a copy of the IMO Circular;

a 1992 CLC certificate; and

a 1969 CLC certificate (this may be substituted by a 1969 CLC blue card addressed to a 1969 flag state provided a shipowner is not calling a ports in a country in which there is in place national legislation which forbids the acceptance of a 1992 CLC certificate as evidence of insurance in accordance with the 1969 Convention.

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Should the Members wish for 1969 CLC blue card they are recommended to contact the Association.

Tankers flying the flags of 1969 CLC States

This section is only applicable to ships flying the flags of a State party to the 1969 CLC (see Annex 2).

As from midnight on 15 May 1998 it will be necessary for ships in this category to carry on board a 1992 CLC certificate. This can be obtained in exchange for a blue card from:

Department of Transport
Marine Office
Central Court, 1B Knoll Rise
Orpington, Kent BR6 0JA
United Kingdom
Tel: 44 1689 890400; Fax: 44 1689 890446

The registration fee is: GBP 33

Yours faithfully,

American Steamship Owners Mutual Protection and Indemnity Association, Inc.
Assuranceforeningen Gard
Assuranceforeningen Skuld
The Britannia Steam Ship Insurance Association Limited
The Japan Ship Owners' Mutual Protection and Indemnity Association
Liverpool and London Steamship Protection and Indemnity Association Limited
The London Steam Ship Owners' Mutual Protection and Indemnity Association Limited
The North of England Protecting and Indemnity Association Limited
The Shipowners' Mutual Protection and Indemnity Association (Luxembourg)
The Standard Steamship Owners' Protection and Indemnity Association (Bermuda) Limited
The Steamship Mutual Underwriting Association (Bermuda) Limited
Sveriges Angfartygs Assurans Forening (The Swedish Club)
The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited
The West of England Ship Owners Insurance Association (Luxembourg)

ANNEX 1

States Party to the CLC 1992

(as at midnight on 15 May 1998)

Australia, Bahamas, Bahrain, Bermuda.

Ratification effected by the United Kingdom., British Virgin Islands, Cyprus, Denmark, Egypt, Finland, France, Germany, Greece, Ireland, Isle of Man, Japan, Korea (Republic of), Liberia, Marshall Islands, Mexico, Monaco, Netherlands, Norway, Oman, Spain, Sweden, Switzerland, Tunisia, United Kingdom.

The CLC 1992 will enter into force in:

Croatia at midnight on 11 January 1999
Grenada at midnight on 6 January 1999
Jamaica at midnight on 5 June 1998
Philippines at midnight on 6 June 1998
Singapore at midnight on 17 September 1998
United Arab Emirates at midnight on 18 November 1998
Uruguay at midnight on 8 July 1998

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1. Although every attempt has been made to ensure the accuracy of he information listed below; Members intending to rely on the information should check with the relevant authorities.

2. Ratification effected by the United Kingdom.

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ANNEX 2

States Party to the CLC 1969

Albania, Algeria, Antigua & Barbuda, Barbados, Belgium, Belize, Benin, Brazil, Brunei Darussalam, Cambodia, Cameroon, Canada, Cayman Islands.

Ratification effected by the United Kingdom., Chile, China (People's Republic of), China Hong Kong SAR, Colombia, Costa Rica, Cote d'Ivoire, Croatia.

The 1992 CLC will enter into force at midnight on 11 January 1999 in Croatia., Djibouti, Dominican Republic, Ecuador, Equatorial Guinea, Estonia, Fiji, Gabon, the Gambia, Georgia, Ghana, Gibraltar, Guatemala, Guyana, Iceland, India, Indonesia, Italy, Kazakhstan, Kenya, Kiribati, Kuwait, Latvia, Lebanon, Luxembourg, Madeira.

Ratification effected by Portugal., Malaysia, Maldives, Malta, Mauritania, Mauritius, Morocco, Mozambique, New Zealand, Nicaragua, Nigeria, Panama, Papua New Guinea, Peru, Poland, Portugal, Qatar, Russian Federation, Saint Kitts & Nevis, Saint Vincent & the Grenadines, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore.

The 1992 CLC will enter into force at midnight on 17 September 1998 in Singapore., Slovenia, Solomon Islands, South Africa, Sri Lanka, Syrian Arab Republic, Tonga, Tuvalu, United Arab Emirates.

The 1992 CLC will enter into force at midnight on 18 November 1998 in the United Arab Emirates., Vanuatu, Venezuela, Yemen, Yugoslavia.

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1. Although every attempt has been made to ensure the accuracy of the information listed below. Members intending to rely on the information should check with the relevant authorities.

2. Ratification effected by the United Kingdom.

3. The 1992 CLC will enter into force at midnight on 11 January 1999 in Croatia.

4. Ratification effected by Portugal.

5. The 1992 CLC will enter into force at midnight on 17 September 1998 in Singapore.

6. The 1992 CLC will enter into force at midnight on 18 November 1998 in the United Arab Emirates.

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ANNEX 3

CLC INSURANCE CERTIFICATES
DRAFT LEGAL COMMITTEE CIRCULAR

Introduction

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1. Article VII of the International Convention on Civil Liability for Oil Pollution Damage (CLC) makes insurance compulsory for ships carrying more than 2.000 tons of oil in bulk as cargo. Such ships must carry a certificate issued by a State as proof of compliance with this requirement.

2. Since 30 May 1996, two versions of the CLC have been in force simultaneously: the original Convention of 1969, and that Convention as amended by the Protocol of 1992. This has not created many practical difficulties. Those States which are party to both the 1969 and 1992 CLC have generally continued to accept certificates issued by States which are party only to the 1969 CLC.

3. On 16 May 1998 States Parties to the 1992 CLC will cease to be party to the 1969 CLC. This has resulted in some confusion regarding the issue and recognition of CLC certificates. This circular seeks to provide clarification.

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The legal framework and State practice

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4. Article VII of the 1969 CLC only makes explicit provision for each State Party to issue certificates to ships flying its flag and for their mutual recognition by other States Parties. Article VII of the 1992 CLC makes clear that States Parties may also issue certificates to ships flying the flag of non-party States, and that these must be recognised by other States Parties.

5. The changes made to Article VII by the 1992 Protocol simply put longstanding State practice on a clear legal footing. Legislation implementing the 1969 CLC in some States makes explicit provision for the issue of certificates to ships flying the flag of non-party States. These States have also accepted 1969 CLC certificates which other States Parties have issued to ships flagged in non-party States.

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The problem and recommended solutions

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6. From 16 May, the owners of ships flying the flag of a State Party to the 1969 CLC will need to have obtained a 1969 CLC certificate from their flag State and a 1992 CLC certificate from a State Party to the 1992 CLC. They can then trade freely, confident in the knowledge that these certificates will be accepted by other States Parties.

7. The position is less simple for ships flying the flag of States Parties to the 1992 CLC. In order to minimise the practical problems caused when States Parties to the 1992 CLC cease to be party to the 1969 CLC, the Legal Committee recommends:

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a. that States Parties to the 1969 CLC continue the established practice of issuing 1969 CLC certificates to ships flying the flag of non-party States and accept such certificates issued by other States Parties to the 1969 CLC; and

b. that, where legally possible in accordance with their national law, States Parties to the 1969 CLC accept CLC certificates issued by State Parties to the 1992 CLC as proof that a ship has insurance cover as required by the 1969 CLC.

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8. The committee also welcomes the statement by the International Group of P&I Clubs that, where there is in force a policy of insurance satisfying the requirements of Article VII of the 1992 CLC, there is also in force a policy of insurance satisfying the requirements of Article VII of the 1969 CLC.

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Distribution

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9. The committee requests that Member States bring the contents of this circular to the attention of the managers and their shipping registries, port State control inspectors and other interested parties.

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