Coast Guard Finalizes Last Minute Guidance On Implementation Of The Maritime Labour Convention, 2006

On August 6, 2013, the U.S. Coast Guard published a Notice of Availability in the Federal Register announcing the availability of Navigation and Vessel Inspection Circular 02-13 dated July 30, 2013 ("NVIC 02-13") to provide guidance on Coast Guard policies and procedures regarding the inspection of U.S. vessels for voluntary compliance with the Maritime Labour Convention, 2006 ("MLC 2006"). 78 Fed. Reg. 47716. NVIC 02-13 updates a draft MLC 2006 NVIC published on February 11, 2013. The timing is critical because MLC 2006 goes into effect and Port State enforcement could start in less than two weeks on August 20, 2013.

The Federal Register Notice is available at http://www.regulations.gov/#!documentDetail;D=USCG_FRDOC_ 0001 -3779. NVIC 02-13 is available at: http://www.uscg.mil/hq/cg5/nvic/pdf/2013/MLC%20NVIC%2002-13.pdf.

Background

As we previously advised, MLC 2006 is an international agreement that will essentially revise and replace most of the existing International Labour Organization ("ILO") maritime labor instruments and recommendations adopted since 1920, while consolidating those labor instruments into one globally applicable and uniformly enforceable legal instrument.

The United States has not ratified MLC 2006 and, as a result, the Coast Guard will not enforce compliance with MLC 2006 on U.S.-flag vessels or foreign-flag vessels while navigating within U.S. waters. Despite the fact that the United States has not ratified MLC 2006, U.S.-flag vessels may be subject to Port State Control action in other countries. In light of this potential risk, which could include detention at a port in a country that is a party to MLC 2006, the Coast Guard encourages shipowners and operators to comply with MLC 2006. To that end, the Coast Guard published the draft NVIC which has now been superseded by NVIC 02-13.

As provided in NVIC 02-13, the Coast Guard intends to issue a Statement of Voluntary Compliance Maritime Labour Certificate ("SOVC-MLC") to vessels demonstrating compliance with MLC 2006. Shipowners and operators of vessels that fall within the scope of the NVIC are not obligated to obtain a SOVC-MLC, but may voluntarily request inspection to obtain this certificate. The Coast Guard has authorized Recognized Class Societies ("RCSs") to conduct MLC 2006 compliance inspections and issue SOVC-MLCs at the request of vessel owners and operators.

U.S.-flag vessels that operate on international routes, meaning those vessels that will enter the...