Offshore Services- British Virgin Islands The British Virgin Islands (BVI) is currently a tax-neutral Category 2 Red Ensign port of British registry operating under the authority of the Merchant Shipping Act 2001. In May 2005 the BVI government took a significant step towards achieving Category 1 vessel registration status. Subsidiary legislation designed to complement the 2001 act - in the form of the Merchant Shipping (Adoption of UK Enactments) Order 2005 - took effect on May 26 2005. The effect of this statutory instrument was to adopt UK legislation in the context of merchant shipping, subject to relevant modifications. The adopted enactments included:
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five UK acts;
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189 pieces of subordinate legislation; and
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three statutory codes of practice to govern and/or regulate, among other things:
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marine safety and security;
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carriage of goods;
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administrative matters;
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crew (including crew accommodation);
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carriage of dangerous goods;
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diving and submersibles;
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fire prevention and protection;
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high-speed craft;
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lifesaving;
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load lines;
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marine pollution;
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navigation and collision;
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occupational health and safety;
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radio and navigational equipment;
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vessel construction and equipment;
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tonnage;
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oil recovery operations; and
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small vessel safety.
This development paved the way for the BVI's move to Category 1 registration status by solidifying the statutory framework under which its merchant shipping regulatory regime operates, thus forming a robust legislative platform from which to deal effectively with and facilitate the impending change.
The change in vessel registration status from Category 2 to Category 1 is imminent. To this end, the government launched the Virgin Islands Shipping Registry in 2006. The registry was created by the merger of the Shipping Registry Division of the BVI Financial Services Commission and the Marine Services Unit of the Ministry of Communication and Works. The registry represents the fulfilment of one of the final conditions required for the territory to operate in Category 1 within the Red Ensign Group. The consolidation of the two marine-related regulatory bodies, and the fact that the registry falls administratively under the authority of the Chief Minister's Office, are testament to the government's commitment to achieving Category 1 status for the territory. In its 2003/2007 legislative agenda, the government pledged to devote the resources necessary to create the infrastructure required for the change in status; it is anticipated that the new status will officially be launched before the end of this year.
A change in registration status to Category 1 will lift the current tonnage restrictions on vessels that may be registered under the BVI flag. It will open the territory to new possibilities in the merchant shipping arena, thereby benefiting, among others, owners, financiers and crew of BVI-registered vessels. Once the new status has been formally conferred, the BVI will join the ranks of Bermuda, the Cayman Islands, Gibraltar, the Isle of Man and the United Kingdom.
International Law Office | 
