2. USCG Port State Control and Qualship 21 Programs Presented by Commander Paul Thorne, USCG Chief, Foreign and Offshore Vessels Division U.S. Coast Guard Headquarters Vetting/Chemical Seminar Houston, Texas – March 15, 2006

3. Overview Brief Port State Control Overview Targeting Use of Risk Based Decision Making Processes Enforcement of the ISM Code Recent Release of MARPOL Annex I Enforcement Guidance Qualship 21 Program

4. Origin of the PSC Mission In 1994, Congress recognized that within the greater influx of non-U.S. ships, there undoubtedly existed a number of substandard vessels that posed an unacceptable threat to the safety of ports, waterways, and the marine environment of the country. Accordingly, the Congress directed the Coast Guard to develop a program to eliminate substandard vessels from the nation’s waters, and to submit annual reports on the status of this newly mandated program.

5. The Scope of Port State Control “…ship will not sail until it can proceed to sea without presenting a danger to the ship or persons on board, or without presenting an unreasonable threat of harm to the marine environment, whether or not such action will affect the normal schedule of the departure of the ship.” IMO Resolution A.787(19), Chapter 2, 1.6.3 Substandard Quality Standard

6. Global Maritime Safety/Security Net Flag State IMO Class/RSO Owner/Operator Ship Management MOUs USCG Port State Control Substandard Vessel MARINE INCIDENT

7. PSC/ISPS/MTSA Targeted Elements Targeted Flag States (SOLAS and Non-SOLAS) Targeted Recognized Security Organization Targeted Recognized Organization Targeted Ship Management Owners Operators Charterers Targeted Countries (Last Ports of call)

8. Changes to PSC Safety Matrix The Coast Guard utilizes Risk Based Decision Making (RBDM) Processes to assess foreign vessels calling on U.S. ports We continually assess and refine our matrices to target the vessels that pose the largest risk to our ports The latest substantive change took place in July 2005 This change included: Inclusion of a two-tiered targeted Flag State methodology Removal of point values for vessels carrying low value commodities Addition of graduated scoring for Bulk Carriers depending upon their age

10. Flag State Performance for PSC (7 Point Flag States) Based on Detention Ratio 7 points Average Detention Ratio for all flags: 2.30%

11. Flag State Performance for PSC (2 Point Flag States) Based on Detention Ratio 2 points Average Detention Ratio for all flags: 2.30%

13. ISPS Targeted Registries Based on Security Control Action Ratio (CAR) 2 points 7 points Average CAR for all flags 1.51%

14. ISM Code Enforcement The U.S. Coast Guard began enforcement of the ISM Code in July 1998 on passenger vessels and tankers, bulk carriers, gas carriers and high speed craft of 500 gross tons or more. In July 2002 our enforcement expanded to other cargo ships and MODUs of 500 gross tons or more. In August of 2005, we published refined guidance via a Navigation and Vessel Inspection Circular (NVIC), outlining our enforcement procedures. The NVIC can be found on our website: http://www.uscg.mil/hq/g-m/nvic/NVIC%2004-05.pdf We fully support the promotion of a “safety culture” through the use of Safety Management System implementation at the administrative company level and on the vessel. Our PSCOs expect compliance with the ISM Code at each inspection. When we find non-compliance, we will use international and domestic authorities to correct the deficiencies.

15. MARPOL Annex I Enforcement The U.S. Government requires strict compliance with MARPOL Annex I requirements by all vessels that are in the navigable waters of the United States. We have recently clarified the formal policy that outlines our Port State Control examination procedures for pollution prevention equipment. These guidelines can be found on our website: http://www.uscg.mil/hq/g-m/moc/docs.htm The U.S. Government will work with the International Maritime Organization and Port State Control MOUs/Agreements to consistently enforce MARPOL Annex I requirements, while respecting Flag States’ inherent sovereign authority.

16. QUALSHIP 21 “Quality Shipping for the 21 st Century” Eligibility Requirements: (applies for duration of the vessel’s time in program) Must not have an IMO Detention in U.S. waters within the previous 36-months Must not have any marine violations (civil or criminal) and no more than one paid Notice of Violation (ticket) case, within the previous 36-month period Must not have a reportable marine casualty that meets the criteria of a serious marine incident (46CFR4.03-2) in U.S. waters within the previous 36-months. Must have completed a successful, U.S. Port State Control exam within the previous 12-month period. Must not be classed by or have their statutory Convention Certificates issued by a targeted class society.

17. QUALSHIP 21 “Quality Shipping for the 21st Century” Eligibility Requirements (Cont): Must not be registered with a Flag State that has an overall U.S. IMO detention percentage of more than 1% over the previous three-year period. Also, the vessel’s Flag State must have at least 10 distinct arrivals in each of the previous 3 years. Vessel’s Flag State must have submitted their Self-Assessment of Flag State Performance to the IMO and provided a copy to the USCG. Qualship 21 Certificates: Qualship 21 certificates are good for 2 years and the issue date is based on the vessel’s last successful U.S. PSC exam. Currently Eligible Flag States: Barbados, Bermuda, China, Hong Kong, Marshall Islands, Vanuatu, Isle of Man, Luxembourg

18. QUALSHIP 21 “Quality Shipping for the 21st Century” QUALSHIP 21 Large Fleet Designation: Applies to those companies with 25 or more vessels enrolled in the QUALSHIP 21 program. Do not need to apply for this designation. Benefits: Large Fleet designated companies will become ineligible for the program when they are associated with 2 or more IMO detentions in any 24-month period, vice only 1 detention. Note: This exemption does not apply to the actual QUALSHIP 21 vessel that was detained. It will be removed from the program immediately. QUALSHIP 21 Company Notifications: Companies are requested to inform the USCG Qualship 21 Program Manager when one or more of the below changes occurs to a vessel enrolled in the program: Name, Flag, Class Society, Owner / Operator / Charterer

19. Questions Qualship 21 Program LCDR Scott Klinke sklinke@comdt.uscg.mil 202-267-1934 Port State Control Program CDR Paul Thorne pthorne@comdt.uscg.mil 202-267-0488 MARPOL Annex I Policy LT Ryan Allain rallain@comdt.uscg.mil 202-267-0476