Client Alert:

The Regulation Relating to Shipyards, Boatyards and Dry Dock Areas Has Been Amended

The Regulation Relating to Shipyards, Boatyards and Dry Dock Areas Has Been Amended

The Regulation Relating to Shipyards, Boatyards and Dry Dock Areas (“the Regulation”) has been amended through a new Regulation (the “New Regulation”) which was published in the Official Gazette dated 25 December 2020 and entered into force on the same day. The New Regulation amended certain procedures concerning the operation permits that the mentioned facilities have to obtain, the validity period of the permits and the transfer of the facilities.

Amendments to the Criteria for the Assessment of the Applications for Partial Operation Permits or Operation Permits

The first amendment is that the facility operation permits which could previously be issued for a period of 5 years, shall now be issued for a maximum period of 5 years. In addition, facilities shall be inspected by the Commission of Examination, Assessment and Inspection (“CEAI”) established by the administrative authority at least once during the permit period and subsequently, their permits shall be endorsed by the Harbour Master’s Office.

Amendments to the Criteria for Facility Transfer Applications and their Evaluation

A further amendment which has been introduced is to the transfer to third parties of ownership/shares (partially or entirely) of facilities having a permit of use and/or usufruct right by the Ministry of Treasury, and of which the investment phase is completed. In case of such transfer, in order to renew the operation permit or the partial operation permit, the transferee, in addition to the previous requirements, is now obliged to submit a letter of undertaking acknowledging responsibility to take safety measures in the transferred facility.

If following the transfer, the facility’s operation permit or the partial operation permit is renewed until the end of the validity period of the previous permit, the facility is once again required to be inspected by the CEAI. The inspection shall be performed within 1 year following the renewal or at the end of the expiry date of the permit if it is renewed for less than 1 year.

Amendments to the Sanction Procedure

Apart from the cases that require the Harbour Master’s Office to impose an administrative fine, the procedure to be followed by the CEAI upon determination of an omission or non-compliance with the requirements of the Regulation has been amended. In this regard, similar to the previous procedure, the facility will be given six months to eliminate the omission or non-compliance; otherwise the activities of the facility will be suspended by the administration without the need for a second warning or without being granted any additional period. The activities may only be permitted to resume following the elimination of the omission or non-compliance.

Amendments to the Deadlines

  • The validity of the partial operation permits of the existing facilities has been extended until 31.12.2021.
  • The validity of the operation permits of the facilities without a specified validity period has been extended from 5 years to 6 (until 28.06.2021).
  • The validity of the operation permits of the floating docks without a specified validity period has been extended from 5 years to 6 (until 28.06.2021).
  • The obligation of the facilities (excluding the Military, Coastal Security Command, and Police facilities), that were in operation before 13.02.2009 to submit documents to the administration, such as business license, work permit or operation permit has been extended until 31.12.2021.
  • Existing facilities without an operation permit or a partial operation permit are exempted from service charges for “survey/ construction permit/ delivery order procedures conducted before the Harbour Master’s Office regarding the construction, modification, maintenance and repair of ships and water vessels” until 01.07.2021 as per the newly introduced provisional article 5 on the exemptions.

If you require any clarification or further information please contact us.

(*) as per the definition provided by the Regulation, the term “existing facility” refers to the facilities that were documented to be in operation in the fields of construction, modification, maintenance-repair and docking before 13.02.2009 or those who obtained a partial operation permit or an operation permit from the administration.

TAGS

corporate, finance, railway, regulation, petroleum, e-commerce, istanbul, arbitration, foreign awards, energy, national markers, advance dividends, natural resources, letter of guarantee, interim dividends

RECENT NEWS

We have received your submission. Thank you!