Pleasure cruisers at the Royal Jamaica Yacht Club, in Port Royal. - ContributedAS MANY as three quarters of local pleasure boats, yachts and cruisers berthing at the Royal Jamaica Yacht Club (RJYC) in Port Royal may be failing to register and obtain a licence from the Maritime Authority of Jamaica.
Detailed investigations carried out by Wednesday Business have shown that as many as 30 out of 40 boats, owned by some of Jamaica's wealthiest business people, berthing at the club over the past two weeks failed to carry a local registration number from the Maritime Authority or an alternative from another country.
According to the 1998 Shipping Act all boats must show a registration number. One of the reasons for the lack of registration may be the fact that pleasure vessels such as yachts have to pay tax and duty of 35 per cent of the value of the boat when imported and registered.
Inspectors from the Maritime Authority have said they will soon start inspecting the more than 1,100 small vessels used primarily in the tourism industry starting January 26 in Montego Bay. But no mention has so far been said about local pleasure cruisers and yachts, which appear to be openly flouting the law.
Although many pleasure craft owners claim to have obtained certification from abroad - primarily the United States, they flagrantly disregard what the Maritime Authority's ship registry set out to accomplish, the ability to track sea going vessels within Jamaica.
The Shipping Act of 1998 established the Maritime Authority, a statutory corporation to administer the registration of ships, regulate matters relating to merchant shipping and seafarers, and to administer policy for the development of shipping in general.
The Government has been very keen to establish a viable ship registry which will supply inflows of revenue.
Indeed in October of last year Prime Minister P.J. Patterson said that in another decade, the Maritime Authority could be receiving more than US$20 million annually in revenue from the operation of the country's first international ship registry.
The registry will enable ship owners worldwide to register their ships and small vessels under the Jamaica flag and expand Jamaica's image in the international maritime community. However, many local vessels are failing to do so since the registry's inception last October.
It is customary for ships to carry the name of the port of registry. When a boat enters a country's territorial waters it is required to fly the flag of that country it is entering as well as its own country's flag.
Usually the flag of the country they are entering is flown above the bridge and the flag of its registry is flown at the stern.
This indicates that a vessel is legally registered. But this did not prove to be the case with many of the vessels at the RJYC.
Vessels that operate only within their own territorial waters, which tend to be small craft, still require a licence. Of particular concern to maritime specialists is the fact that licences should not be granted unless vessels acquire a minimum level of insurance.
Speaking to the Wednesday Business, Maritime Authority director of shipping and policy research Eric Deans, who is responsible for the management of ship registry operations, said: "One of the problems with registration appears to be access to adequate marine insurance in Jamaica. Many pleasure craft owners are able to obtain favourable rates in both Cayman and Bermuda and so avoid registering in Jamaica.
"In the coming months we will be speaking to all the leading insurance companies in the country with a view to setting in place a protection and indemnity scheme(P&I) for all vessels."
At present both Dyoll and Globe insurance companies are the leading providers of marine (hull) insurance for sea going craft in Jamaica.
Another problem encountered by the Maritime Authority is that new pleasure craft bought into Jamaica should pay 20 per cent import duty and 15 per cent general consumption tax (GCT), further escalating the cost of running a pleasure cruiser in Jamaican waters.
Deputy Commissioner for the Customs Jack De Lisser said the various categories of boats that should pay duty and GCT include cruising ships, excursion boats, ferry boats, cargo boats and barges. Transportation ships for people or goods require no import duty but carry 15 per cent GCT.
Fishing vessels and other vessels processing or preserving fishery products, tugs and light vessels pay no import duty but also 15 per cent GCT
Yachts and pleasure boats owners have to pay 20 per cent import duty and 15 per cent GCT.
Marine consultant and Mariserve (Jamaica) boss Ralph Sugden drew attention to the importance of Jamaican pleasure craft having adequate marine insurance cover.
"Boats are just as hazardous as cars on the road. We do have accidents were boats going along collide with a jet ski or hit a swimmer, so why shouldn't the boat be insured so that the person sustaining injury have recourse to compensation. Also if boats cause damage to property or hit something there should be third party insurance."
"My main concern is the safety aspect through all this. By registering a boat it insures that if an accident occurs and all that is visible is a name or a number, then the boat can be tracked much like the licence plate on a car."
