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Date
30 June 2004

TO THE MEMBERS

Dear Sirs

Ref: 12/04

ISPS (INTERNATIONAL SHIP AND PORT FACILITY SECURITY) CODE – EVIDENCE OF CERTIFICATION

Members should be aware that (as advised in the Association’s Circular Ref. 8/03 dated June 2003) the ISPS Code comes into effect on 1 July 2004, in relation to all passenger ships, to cargo ships (including high speed craft) of 500 gt or more, to mobile offshore drilling units, and to port facilities serving such ships engaged on international voyages.

From 1 July 2004, all such ships will have to carry an International Ship Security Certificate (ISSC) to evidence their compliance with the mandatory requirements of the ISPS Code and with the requirements of SOLAS Chapter XI-2.

Members should also be aware that Rule 5K of the Association was amended for the 2004 policy year to require that valid statutory certificates be maintained in relation to the ISPS Code. The Rule makes clear that an owner cannot recover in respect of any claim arising during a period when valid certificates are not maintained, unless and to the extent that the Directors otherwise decide.

The Managers’ London Agents may therefore wish to see copies of ISSCs before considering requests to provide guarantees on behalf of the Association, and may wish to make similar checks when dealing with other serious, or security-related, claims.

Members can minimize the risk of delay in considering requests for guarantees by placing details of ISSCs on record with the Association in advance.

For this purpose, Members may send copies of certificates to the above address, for attention Sue Jamieson / Julie Page, or through their usual means of contact.

Members are advised that the Association will require to have seen valid ISSCs as a general condition of renewal for the 2005 policy year. The Application Form for new entries in the Association will also be revised to include ISSC details.

Yours faithfully

THOMAS MILLER (BERMUDA) LTD.