NEW AMENDMENTS TO THE CROATIAN MARITIME CODE Koper, 30 May 2013 Jasenko Marin University of Zagreb Faculty of Law

THE CROATIAN MARITIME CODE (CMC) Official Gazette (181/04, 76/07, 146/2008, 61/2011, 56/2013) 2013 Amendments (AACMC) entered into force on 18 May 2013  144 Articles  Main amendments are related to: a) Alignment with the Acquis communautaire (maritime cabotage, safety of navigation, rights of passengers, protection of marine environment etc.) b) Recovery and removal of wrecks and other sunken objects 2

ALIGNMENT WITH RELEVANT SOURCES OF EU LAW 1.Council Regulation (EEC) No 3577/92 of December 1992, applying the principle of freedom to provide services to maritime transport within Member States (Maritime Cabotage Regulation) 2.Regulation (EC) No 392/2009 of the European Parliament and of the Council of 23 April 2009 on the liability of carriers of passengers by sea in the event of accidents (Athens Regulation) 3.Regulation (EU) No 1177/2010 of the European Parliament and of the Council of 24 November 2010 concerning the rights of passengers when travelling by sea and inland waterway and amending Regulation (EC) No 2006/2004 (Passenger Rights Regulation) 4.Directive 2009/20/EC of the European Parliament and of the Council of 23 April 2009 on the insurance of shipowners for maritime claims (Insurance Directive) 5.Directive 2000/59/EC of the European Parliament and of the Council of 27 November 2000 on port reception facilities for ship-generated waste and cargo residues 6.Council Directive 2009/13/EC of 16 February 2009 implementing the Agreement concluded by the European Community Shipowners’ Associations (ECSA) and the European Transport Workers’ Federation (ETF) on the Maritime Labour Convention, 2006, and amending Directive 1999/63/EC 3

1. MARITIME CABOTAGE  AACMC 2013,Article 5, amending Article 9 of the CMC  Freedom to provide cabotage services within Croatia for all EU shipowners  Enters into force in accordance with the transitional periods provided by the Accession Treaty: Public service contracts on cabotage concluded before the date of Croatia's accession may continue to be applied until 31 December 2016 Until 31 December 2014,cruise services carried out between Croatian ports by ships smaller than 650 gross tones shall be reserved to ships registered in, and flying the flag of, Croatia, which are operated by shipping companies, established in accordance with Croatian law, and whose principal place of business is situated, and effective control exercised, in Croatia. 4

2. REGULATION (EC) 392/2009 (ATHENS REGULATION)  AACMC (Article 75) amending Article 612 of the CMC Incorporation of the Regulation 392/2009 (introducing 2002 Athens Convention and IMO Guidelines in EU law)  IMO Guidelines are mandatory  Advance payment in minimum amount of € Application in respect of each international carriage and some specific domestic carriages (class A and class B vessels as defined in Directive 98/18/EC): a)if the ship is flying the flag of or is registered in a Member State b)if the contract of carriage has been made in a Member State, or c)if the place of departure or destination, according to the contract of carriage, is in a Member State  Other carriage: application of CMC (1990 Athens Protocol) 5

6 2. REGULATION (EC) 392/2009 (ATHENS REGULATION) cont. BASES OF CARRIER LIABILITY FOR THE PASSENGER  Shipwreck, collision, stranding, explosion, fire, capsizing or defect of the ship → two tier system: 1.Limited strict liability up to 250,000 SDR (app. 260,000 €) per passenger on any distinct occasion 2.Presumed fault up to 400,000 SDR (app. 416,000 €) per passenger on any distinct occasion  Other cause of death or personal injury: the claimant must prove the fault of the carrier (proven fault liability up to 400,000 SDR)

7 2. REGULATION (EC) 392/2009 (ATHENS REGULATION) cont.  Compulsory insurance of liability up to 250,000 SDR  Actio directa – claimant is entitled to obtain compensation directly by insurer

8 2. REGULATION (EC) 392/2009 (ATHENS REGULATION) cont. IMO RESERVATION AND GUIDELINES  Limits of liability for the death of or personal injury to a passenger caused by war risks (terrorism included) 1.250,000 SDR per passenger on each distinct occasion; or million SDR per ship on each distinct occasion whichever amount is lower

EU ACCESSION TO THE 2002 ATHENS PROTOCOL ACCESSION OF THE REPUBLIC OF CROATIA  Council decisions from 12 December 2011 (2012/22/EU) – Accession generally (2012/23/EU) – Decision in respect to the provisions on jurisdiction, recognition and enforcement (Articles 10 and 11)  Croatia: Official Gazette – International Agreements No. 2/2013 of 8 March 2013  2002 Protocol shall enter into force internationally on 23 April

3. REGULATION (EU) 1177/2010 – PASSENGER RIGHTS REGULATION (application from )  Relevant cancellation or a delay in departure - 90 min - information, meal, refreshment, accommodation (max 80 €/ night, max 3 nights) + - passenger’s right to choose between: a) re-routing to the final destination, under comparable conditions, as set out in the transport contract, at the earliest opportunity and at no additional cost; or b)reimbursement of the ticket price and a return service free of charge to the first point of departure, at the earliest opportunity. 10

3. PASSENGER RIGHTS REGULATION cont.  In the event of delay in arrival at the final destination – compensation (25% up to 50% of the ticket price)  Exceptions: weather and extraordinary conditions; passenger is informed about delay before the purchase of the ticket; delay caused by the passenger 11 Scheduled journey (according to the contract or timetable) Relevant delay in arrival  4 hours 1 hour or more  4  8 hours 2 hours or more  8 hours  24 hours 3 hours or more  24 hours 6 hours or more

3. PASSENGER RIGHTS REGULATION cont. OTHER COMMON SOLUTIONS  Rights of disabled passengers and passengers with reduced mobility  Information  Procedure – Carriers and National enforcement bodies  Croatia: Agency for the Coastal Maritime Traffic Lines 12

3. PASSENGER RIGHTS REGULATION  2004 CMC, Article 606 In the case of voyages limited to the internal waters of the Republic of Croatia, a passenger may cancel the contract if the ship does not commence the voyage within one hour after the time stated in the contract or in the ship’s timetable, or within 12 hours in the case of voyages beyond the said limits + the reimbursement of the ticket price. If the delayed departure is caused by the act of the carrier or persons in his service, committed with the intent or gross negligence, the carrier shall be bound to compensate the passenger for damages.  2004, CMC Article 610 (Interruption of the voyage after the departure) trigger interruption: 12 hours /3 days) !?  Maritime Code: no provisions on “classical” delay in arrival (Law on Obligations shall be applied); NOT IN LINE WITH EU PASSENGER RIGHTS REGULATION – CMC amended by the AACMC (Article 73) – Regulation shall be applied 13

4. INSURANCE DIRECTIVE  Implementation into Croatian law: AACMC, Article 82: introducing new Articles 747a-747d of the CMC Owners of seagoing ships entering a Croatian port, of 300 gross tonnage and above, are required to maintain insurance or other financial security to cover the vast majority of third party maritime claims of the type described as subject to limits of liability by the LLMC The existence of this type of insurance shall be proved by one or more certificates issued by its provider and carried on board the ship  THERE IS NO DIRECT ACTION (ACTIO DIRECTA) AGAINST INSURER FOUNDED ON THIS TYPE OF MANDATORY INSURANCE 14

MANDATORY INSURANCE UNDER THE CMC (AACMC, Article 24; amending Article 62 of the CMC)  Applicable to: any ship entering a Croatian port or off-shore object in Croatian territorial sea and/or registered in any Croatian register of ships) 1.The owner of a ship carrying more than 2,000 tons of oil in bulk as cargo shall be required to maintain insurance or other financial security to cover liability under Article 820 of the CMC (CLC Insurance) 2.The registered owner of a ship having a gross tonnage greater than 1000 shall be required to maintain insurance or other financial security to cover liability under Articles 823a-823f of the CMC (Bunker Oil Pollution Insurance) 3.Any carrier who actually performs the whole or a part of the carriage shall maintain insurance or other financial security in line with Regulation 392/2009 and Article 615a of the CMC (Athens Regulation Insurance) 15

MANDATORY INSURANCE UNDER THE CMC (AACMC, Article 24; amending Article 62 of the CMC, cont.) 4.The registered owner of a ship of 300 gross tonnage and above shall be required to maintain insurance or other financial security, to cover the costs of locating, marking and removing the wreck as provided by Articles 840a-840z of the CMC (introduced by the AACMC, Article 109; Wreck removal insurance) 5.LLMC Insurance Directive 16

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