transport malta yacht code

Commercial Yacht Code 2020

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Malta Passenger Yacht Code Overview

The revised Passenger Yacht Code (PYC) was introduced by the Transport Malta Directorate on the 25th of May 2021, the code may be accessed here .

This code was born out of necessity to cater to the needs and realities of the ever-expanding yachting industry in Malta .  The code was drawn up by the Merchant Shipping Directorate within Transport Malta in close coordination with various major stakeholders in the industry, ranging from yacht manufacturers, appointed surveyors, and recognized organizations, aiming to serve as a widespread representation of the industry.

Which yachts fall under Malta’s Passenger Yacht Code?

This revised code is specifically designed for and applicable to passenger yachts which:

• Carry more than 12 people but no more than 36 (no more than 200 total persons) ;
• Do not carry cargo;
• Are engaged in international voyages.

Requirements to be satisfied to be registered under PYC

Passenger yachts which are registered under the Malta flag are required to meet SOLAS and other applicable Conventions’ requirements.

Additionally, passenger yachts qualifying under the PYC must be surveyed, certified, audited, and issued with Class and Statutory Certificates by Recognised Organisations.

It is important to note that the revised PYC does not apply to:

• Commercial yachts carrying 12 or less passengers (the Malta Commercial Yacht Code applies in this case);
• Passenger commercial/cruise vessels engaged exclusively in domestic navigation;
• Passenger commercial/cruise vessels carrying more than 36 passengers;
• Vessels engaged in the ferrying of passengers;
• Pleasure craft and yachts not employed in commercial use;
• Fishing vessels;
• Vessels owned or operated on non-commercial services;
• Passenger ships whose total complement of persons onboard is greater than 200 persons.

Malta Passenger Yacht C ode (PYC) vs Malta Commercial Yacht Code (CYC)

In 2020, the Merchant shipping directorate along with Transport Malta, drew up a revised CYC which became effective as of 1 st January 2021.

The CYC distinguishes itself from the PYC by applying to:

• Yachts engaged in commercial operations which do not carry 12 or more people;
• Yachts ≥ 15 m in length overall and < 24 m in length;
• Yachts ≥ 24 m in length and < 500 GT;
• Yachts ≥ 500 GT.

Another difference can be seen when it comes to commercial yachts certified in accordance with CYC, where such yachts may be granted one of three navigation notations as follows:

• Navigation within 60 miles from a safe haven (Short Range);
• Navigation within 150 miles from a safe haven;
• Unrestricted Navigation.

Whilst passenger yachts certified under the remit of the PYC may carry out International (Unrestricted) Voyages or Short International Voyages, as defined by SOLAS:

• International (Unrestricted) Navigation is an unrestricted navigation notation;
• Short International Navigation is a navigation notation concerning an international voyage in the course of which a ship is not more than 200 miles from a port or place in which the passengers and crew could be placed in safety.

To summarise

Prior to the Passenger Yacht Code introduction, yachts carrying more than 12 passengers that fell outside of the Malta Commercial Yacht Code’s scope had to satisfy similar requirements to those applicable to passenger ships. These requirements were often regarded as being impractical and limiting in functionality when considering a passenger yacht’s design and general operations.

This newly revised PYC shows that the Merchant Shipping Directorate is committed to keeping up with the requirements of the flourishing yachting industry in order to maintain Malta’s status as a quality flag, this indication of commitment to future growth is wholly welcome as it signifies the close eye Transport Malta along with the Merchant shipping directorate, are keeping on the practical needs and demands required to nurture long term growth in this sector .

The article is intended to serve as a general guide on the subject matter. For further information and guidance on the subject we recommend seeking professional assistance.

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The new malta passenger yacht code.

May 31, 2021 Leave a Comment

On the 24 th May 2021 the Merchant Shipping Directorate of Transport Malta published Merchant Shipping Notice 171 notifying the industry that the Malta Passenger Yacht Code (PYC) will enter into force on the 25 th May 2021. The code was drawn up following consultation with industry stakeholders.

Prior to the entry into force of the PYC, commercial yachts registered under the Malta flag and carrying more than 12 passengers were required to satisfy requirements similar to those for passenger ships since they fall outside the scope of the Malta Commercial Yacht Code. Due to the increasing size of commercial yachts and the onerous requirements applicable to passengers ships, the Merchant Shipping Directorate recognised the need to develop a code which specifically caters for larger commercial yachts carrying more than 12 passengers. The PYC caters for a number of equivalencies specifically designed for passenger yachts which carry more than 12 passengers and up to 36 passengers, do not carry more than 200 persons, do not carry cargo and are engaged on international voyages.

This is a welcome development since it addresses technical issues and concerns faced by whoever wishes to register larger commercial yachts under the Malta flag.

The PYC may be found here: https://www.transport.gov.mt/Passenger-Yacht-Code-PYC.pdf-f6340

By Lara Saguna Axiaq, Fenech & Fenech Advocates

Source: Lexology

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Passenger Yacht Code (PYC) 2021 updates by Transport Malta

Transport Malta Directorate recently announced the introduction of a new Passenger Yacht Code (PYC) which is effective and came into force on the 25th May 2021.  This relates to Passenger Yachts which carry between 13 and 36 Passengers (but not more than 200 persons), which do not carry cargo and which are engaged on international voyages.

It is a widely recognised fact that when considering the operational pattern and risk profile of yachts, the requirements for commercial passenger ships are in some instances disproportionately onerous and technically impracticable in terms of design. Moreover, as large commercial yachts grow in size, the 12-passenger limitation has become a limitation hence the development of this new Code; drawn up in consultation with various industry stake holders including yacht designers, yacht builders, yacht managers, repair yards, specialised service providers and manufacturers and Appointed Surveyors and Recognised Organisations, as a wider representation of the industry.

This Code contains a set of equivalencies issued under the provisions of Article 8 of the International Convention on Load Lines (ICLL), 1966 and Regulation I-5 of the International Convention on Safety of Life at Sea (SOLAS).

The PYC Code and Synopsis by Transport Malta may be downloaded via the link.

Contact us here for free consultation on the Registration of your yacht.

Please note that Commercial Yachts carrying 12 or less passengers shall comply with the requirements of the Commercial Yacht Code (CYC), as amended.

In accordance with the Malta Commercial Yacht Code (“CYC”), on the 2 nd September 2021, the Merchant Shipping Directorate of Transport Malta issued the ‘Commercial Yacht – Pleasure Yacht Changeover Guidelines’ (“the Guidelines”).

The Guidelines extensively highlight the procedure requested by Transport Malta when yacht owners intend on changing the registration status of a Malta flag yacht from that of a pleasure yacht to that of a commercial yacht and vice-versa. Although such possibility of shifting between registration statuses was always accepted by the Malta Ship Registry, the implementation of such Guidelines clearly highlighting the salient principles which yacht owners must keep in mind and the process as to how such changeover may be made shall definitely prove to be a useful tool for yacht owners. The Guidelines clarify the position of the Malta Ship Registry and address any misconceptions yacht owners might have previously had.

For starters, the Guidelines clearly denote that the Merchant Shipping Directorate within Transport Malta does not enforce a capping upon the number of changes which can be made to the registration status of a Malta flagged yacht. On this note, there is also no limit in relation to the duration of change of registration. One may gather that these Guidelines were drafted with the aim of offering the yacht owner a great degree of flexibility with respect to changing the registration status of the yacht.

Although yacht owners are afforded this flexibility, the Guidelines recommend that in the case that the registration of a yacht aims to be changed from commercial to pleasure, then the yacht owner is to carry out the same survey and certification regime as that used for commercial yachts. This is aimed at smoothening the process should the yacht owner decide to change back the status of the yacht to that of a commercial yacht.

Prior to submitting the application for changeover, there needs to be an undertaking signed by the yacht owner ensuring that the current Certificate of Registry of the yacht is forwarded to the Administration upon the arrival of the new Certificate.

The Guidelines further provide that in the event that the registration status of a yacht is changed more than once during a 12-month period, the fees applicable as discussed in the First Schedule of the Merchant Shipping Act (Cap.234) Para A (iii), are only to be paid to Transport Malta once during such 12-month period and not with each changeover.

The Guidelines go on to highlight the process which must be carried out when the registration status of a yacht is changed from a commercial to a pleasure yacht . When the yacht owner receives the new Certificate of Registry (portraying the pleasure yacht status), after having forwarded the old Certificate of Registry (portraying the commercial yacht status) to Transport Malta, all other commercial yacht related certificates, including the Compliance to Trade as a Commercial Yacht Certificate (“CoC”), are to be kept in a safe onboard the vessel. The latter falls under the responsibility of the ship master.

Additionally, when it comes to the changeover from a pleasure yacht to a commercial yacht besides the need of forwarding the old Certificate of Registry, just as in the above case, such certificates are also to be forwarded to an appointed surveyor and/or a classification society surveyor, as requested.

In the case of yachts which were not previously registered as commercial yachts , the Merchant Shipping Directorate must first approve the appointed surveyor/classification society and allow such person to issue certificates and reports denoting that the survey carried out was satisfactory and that the yacht owner was complying to the Malta CYC. The surveyor is then obliged to send in his reports for review for the CoC to be issued.

Alternatively, in the scenario where the yacht has previously been registered as a commercial yacht , the services of the surveyor will mainly be necessary for yachts which are due for inspection or if the yacht’s certificates expire. In the case where certificates are up to date, the surveyor will only be requested to fill out a declaration confirming that there are no expired certificates or overdue surveys. This must be accompanied by a document signed by the master ensuring that the yacht has not suffered any damages from the surveyor’s previous inspection. Following the receipt of the updated documentation and payment of fees, Transport Malta will then issue the Commercial Yacht Registration Certificate.

The implementation of these guidelines affords more clarity to yacht owners and are to be considered an advancement in the yachting industry.

The author would like to thank Giannella Vella, currently an intern at Ganado Advocates, for her support during the preparation of this article.

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• Opportunities in superyachts: Ease of doing busniess in…

Opportunities in superyachts: Ease of doing busniess in Malta and the MBR

The Malta Business Registry, participated in the Opportunities in Superyachts 11th Annual Conference through a panel discussion which focused on Ease of Doing Business in Malta (Yachting Industry). With the participation of the MBR together with other important stakeholders, the discussion focused on means of greater synergy and collaboration, as well as delved into the importance of digitalization in an ever-changing scenario.

Dr Geraldine Spiteri Lucas, MBR CEO and Registrar, said that the MBR has recognised the importance of this specialised sector and has setup a team of specialists within its Registry, dedicated to maritime affairs. The MBR's leading role in the development of a central repository will also contribute towards the further development of this niche in attracting and further facilitating business in Malta, simplifying bureaucratic processes and consolidating scattered data sources into a single, secure system.

Mr Michael Mifsud, CEO Yachting Malta, stressed that Yachting Malta strives to promote Malta as a destination of excellence for Yachting not only from a destination perspective but also as an enabler and facilitator for local industry to internationalise. Yachting Malta also acts to identify and attract high profile yachting events to the Maltese Islands, including sailing regattas, power racing, boat shows, yachting awards & conferences thus paving a way for the generation of Yachting related commerce and business. Mr Mark Savona, Transport Malta's Assistant Registrar, remarked that the Malta Commercial Yacht Code has become an industry favourite, contributing in the growth of a cleaner and safer Malta registered commercial yacht fleet, with many Private Yachts owners also voluntarily adopting the Code.

As Official Receiver and MBR's Head of Insolvency and Receivership Service, Dr Ingrid Hamilton explained that the pre-insolvency framework will bring about a shift in the mind frame of investors and creditors in the superyacht industry. We are realising that there is the possibility of a second chance and there is now a fully-fledged framework in place to achieve this.

The panel discussion also featured the active participation of Dr Marthese Portelli, CEO of the Malta Chamber of Commerce and Dr Matthew Attard, President Malta Maritime Law Association, who shared their views on the subject.

The panel was moderated by Ms Annalise Zammit, COO & Deputy Registrar of the MBR.

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Rules for the Charter of Yachts under the Malta Flag

The purpose of this guide is to provide information concerning the flag state rules applicable to Malta registered yachts that are operated for charter through the Malta Commercial Yacht Code.

The Malta Commercial Yacht Code was launched in 2006 and last updated in 2020 by Transport Malta.

Transport Malta are the authority of the Malta government holding responsibility and accountability for land, sea and air transport in Malta including the development and oversight of Maltese merchant shipping regulations and their enforcement.

A copy of the Malta Commercial Yacht Code 2020 can be accessed at the following link:

Malta Commercial Yacht Code CYC 2020

Unlike the separate codes of practice issued by the British Red Ensign group of ship registries for yachts over and under 24 metres in Load Line length, the Malta Code is a single document covering all yachts over 15 metres in overall length and which do not carry cargo and do not carry more than 12 passengers.

New yachts over 24 metres in length are to be built to the requirements and standards of a classification society authorised to issue statutory certificates on behalf of the Government of Malta. Malta recognises all leading classification societies. Yachts below 24 metres in length do not require to be classed.

All commercial yachts over 24 metres in length are issued with a Minimum Safe Manning Certificate. Transport Malta has, over the years, built considerable experience in this field. Malta recognises training and certification from the most reputable training establishments and countries. There are no restrictions on the nationality of the crew.

All yachts covered by the Code are required to be surveyed, certified and maintained in accordance to their respective category requirements. An Initial Survey is first carried out when a commercial yacht is joining the Malta flag for the first time. Upon satisfactory completion of the Initial Survey a 5 year valid Certificate of Compliance to Trade as a Commercial Yacht (COC) is issued.

Subsequent to Initial Certification, during the 5 year validity of the COC, yachts less than 24m length have to undergo an Intermediate Survey whilst yachts greater or equal to 24m in length have to undergo annual surveys. The COC is renewable every five years and surveys may be carried out by Appointed Surveyors or by Recognised Organisations.

Red Ensign large yacht coded vessels  and ‘Codice dell Noleggio’ certified charter yachts transferring to the Malta Registry may be issued with an operational Commercial Yacht Code Certificate, immediately, upon the initial application for a period of three months to complete any necessary surveys and formalities.

It should be remembered that the coding of a yacht used for charter is only one stage of the process and that advice should always be taken in respect of local legal and fiscal obligations prior to the commencement of any commercial activity.

Oceanskies in conjunction with our partner surveyors is able to provide a complete charter yacht registration package combining commercial Malta flag yacht registration with coding certification and the employment of crew through Oceanskies Crew Limited in a Maritime Labour Convention (MLC) environment and, where applicable, with deduction and payment of Malta social security contributions.

Please do not hesitate to contact us for further information.

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Passenger Yacht Code

• Technical Notices
• Information Notices

As large commercial yachts grow in size, the 12 passenger limitation has become more perceptible and a number of Administrations, including the Malta Merchant Shipping Directorate, spurred on by encouragement from the yachting industry, have developed their own Passenger Yacht Code in order to tackle this industry demand. In this regard, we have the pleasure to present you with the Passenger Yacht Code (PYC).

The PYC has been drawn up in consultation with various industry stake holders including yacht designers, yacht builders, yacht managers, yacht builders’ associations, repair yards, specialised service providers and manufacturers and Appointed Surveyors and Recognised Organisations, as a wider representation of the industry.

A Passenger Yacht, registered under the Malta Flag, shall meet SOLAS and other applicable Conventions’ requirements. In lieu of certain disproportionally onerous Conventions’ requirements the Passenger Yacht may meet the requirements of the PYC which includes a number of dedicated equivalencies.

This Code is specifically designed and intended for Passenger Yachts, which carry more than 12 passengers up to 36 passengers, which carry not more than 200 persons, which do not carry cargo and which are engaged on international voyages.

 Downloads:

Passenger Yacht Code (PYC) Synopsis

MS Notice 171 - Adoption of the Passenger Yacht Code 

Malta: Transport Malta Launches Consultation On The Malta Passenger Yacht Code

As part of the Consultation process Transport Malta launched the Malta Passenger Yacht Code 2020.

The Malta Passenger Yacht Code 2020 is aimed and intended for Passenger Yachts ≥ 500 GT, carrying between 12 to 36 passengers and not more than 200 persons, which do not carry cargo and which are engaged on international voyages. 

The Malta Passenger Yacht Code 2020 has been drawn up by the Authority for Transport in Malta, in consultation with various industry stakeholders including yacht designers, yacht builders, repair yards, specialised service providers and manufacturers and Appointed Surveyors and Recognised Organisations, as a wider representation of the industry

E-mails with feedback/suggestions may be sent to  [email protected] . The consultation process will end on February 2021.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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• Malta Guidelines on Conversion of Yacht Status from Pleasure to Commercial (and vice versa)

Malta introduces Guidelines on Conversion of Yacht Status

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Transport Malta’s Merchant Shipping Directorate issued the “Commercial Yacht – Pleasure Yacht Changeover Guidelines” (the Guidelines)  on 2 September 2021.

Such Guidelines are meant to clarify important aspects with respect to the change of registration status of a Malta flag yacht from pleasure to commercial (and vice versa) by highlighting the steps to be followed when yacht owners and managers intend to carry out such change. The aim of Transport Malta is precisely to facilitate yacht owners and managers during the conversion process.

Although such conversion was always made possible by the Maltese flag administration, such Guidelines intend to provide neater and clear rules as to the steps to be followed to achieve the intended changes.

There are no limits to the number of status changes and the duration of change of a Malta flagged yacht. The Guidelines are designed to offer Malta yacht owners and Malta yacht managers the widest flexibility possible in compliance with international regulations and highest standards emanating from the Malta Commercial Yacht Code.

Notwithstanding the above mentioned flexibility, the Guidelines recommend that owners maintain the same survey and certification standards required for commercial yachts also while the yacht’s status is converted into a pleasure yacht. Such approach is meant to facilitate a smooth and fast conversion back to commercial status.

Change from pleasure to commercial status is subject to the payment of a fee. However, should there be multiple changes in status during the same year, Transport Malta will require payment for change in fees only once.

The yachting community and the yachting team at KPMG Malta welcome the Guidelines with great enthusiasm.

For more information feel free to contact us.

Anthony Pace

Partner, Head of Tax

KPMG in Malta

Email [email protected]

Simon Xuereb

Partner, Private Client and Global Mobility Services

Email [email protected]

Paul Pace Ross

Director, Tax Services

Email [email protected]

The Shipping Sector represents one of the main pillars of the economy in Malta.