STATUTORY INSTRUMENT. No. of Merchant Shipping (Safe Ship Management Systems) Regulation ARRANGEMENT OF SECTIONS.

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1 STATUTORY INSTRUMENT. No. of Merchant Shipping (Safe Ship Management Systems) Regulation ARRANGEMENT OF SECTIONS. PART I. INTRODUCTION. 1. Interpretation accident Act approved safe ship management system audit barge cargo vessel company corrective action code designated person discharge document of compliance fishing vessel hazardous occurrence inspection International Safety Management (ISM) Code ISM Code major alteration major non-conformity Authority non-conformity objective evidence "observation owner Papua New Guinea Safe Ship Management Certificate Papua New Guinea Safe Ship Management Code Papua New Guinea ship Papua New Guinea waters passenger ship policy procedure

2 recognised accreditation body Safety Management Audit Safety Management Manual Safe Operational Plan (SOP) Safe Ship Management System Safety Officer Safety Management System Safety Management Certificate SOLAS SOLAS Ship surveyor. PART II. - SHIPS TO WHICH SOLAS APPLIES. 2. Chapter IX of SOLAS and International Safety Management (ISM) Code. 3. Application of Part B. 4. Safety Management Systems. 5. Company responsibilities and authority. 6. Document of Compliance. 7. Safety Management Certificate. 8. Plans for Shipboard Operations and Emergency Preparedness. 9. Reporting and analysis of incidents. 11. Maintenance of ship and equipment. 12. Documentation. 12. Verification and Control. 13. Guidelines on Implementation of the ISM Code. 14. Port State Control. 15. Offences and Penalties. PART III. - SHIPS OTHER THAN SOLAS SHIPS THAT PROCEED BEYOND THE TERRITORIAL SEA OF PAPUA NEW GUINEA AND FISHING VESSELS AND BARGES OF 24 METRES OR MORE IN LENGTH. 16. Application of Part C. 17. Safe Ship Management System. 18. Conditions to be met for Entry and Retention into SSM system. 19. Offences and Penalties. PART IV. - SHIPS THAT DO NOT PROCEED BEYOND THE TERRITORIAL SEA OF PAPUA NEW GUINEA AND FISHING VESSELS AND BARGES OF LESS THAN 24 METRES IN LENGTH. 20. Application of Part D. 21. Safe Operational Plan System. 22 Offences and Penalties. Appendices. Appendix I Document (Certificate) of Compliance. Appendix II Safety Management Certificate. - ii -

3 Appendix III Interim Document of Compliance. Appendix IV Interim Safety Management Certificate. Appendix V Safe Ship Management Certificate. Appendix VI Papua New Guinea Safe Ship Management Code - iii -

4 Being a Regulation. STATUTORY INSTRUMENT. No. of Merchant Shipping (Safe Ship Management Systems) Regulation PART I. - INTRODUCTION. MADE by the Head of State, acting with, and in accordance with, the advice of the National Executive Council under the Merchant Shipping Act (Chapter 242). 1. Interpretation. (1) In this Regulation, unless the contrary intention appears "accident" has the same meaning as in the Act; "Act means the Merchant Shipping Act (Chapter No. 242); Approved safe ship management system means a safe ship management system approved by the Authority; audit means a systematic and independent examination to determine whether the Safe Ship Management system activities and related results comply with the Papua New Guinea Safe Ship Management Code and whether these arrangements are implemented effectively and are suitable to achieve the safe ship management system's objectives; Authority means the National Maritime Safety Authority established by the National Maritime Safety Authority Act 2003; barge means a cargo vessel not propelled by mechanical means and includes manned and unmanned barges and pontoons, but excludes accommodation barges; cargo vessel means a vessel that is carrying cargo on a commercial basis; Company means the owner of a ship or any other organisation or person, such as the manager or bareboat charterer, who has assumed responsibility for the operation of the ship from the owner of the ship and who, on assuming such responsibility, has agreed to take over all the duties and responsibilities imposed by the International Safety Management Code; corrective action means the action taken to correct an identified noncompliance; code means the ISM Code;

5 designated person means the person or persons ashore appointed by the Company having direct access to the highest level of management, as set forth in Section 4 of the International Management Code for the Safe Operation of Ships and for Pollution Prevention (International Ship Management (ISM) Code); discharge has the same meaning as in the Prevention of Pollution of the Sea Act (Chapter No. 371); document of compliance means a document issued by the Authority to a Company that complies with the requirements of the ISM Code; fishing vessel has the same meaning as the Act; hazardous occurrence means an occurrence other than an accident which could affect the safety of the ship or persons, and includes a "pollution incident" as defined in the Prevention of Pollution of the Sea Act (Chapter No. 371); inspection means an examination of the ship and its equipment to ensure that it is being maintained in accordance with the approved maintenance plan required by these Regulations and is in accordance with the applicable maritime legislation and regulations in respect of Shipping Administration, Ship Safety, Marine Pollution Prevention and Ports Administration and Port Safety; International Safety Management (ISM) Code means the International Management Code for the Safe Operation of Ships and for Pollution Prevention adopted by IMO as amended, provided that those amendments are adopted, brought into force and take effect in accordance with Article VIII of SOLAS and are adopted by the Government; ISM Code means the International Safety Management (ISM) Code; major alteration and major repair means the repair or alteration of a ship, or the replacement or removal or addition of any part of a ship, that is likely: (a) (b) to significantly affect the structural integrity, tonnage, freeboard, cargo or passenger capacity, crew or passenger accommodation, conditions of assignment of load line, watertight subdivision, stability, structural fire protection, or safety equipment of the ship; or to result in significant changes to the propulsion machinery, auxiliary machinery, or method of propulsion of the ship; major non-conformity means an identifiable deviation which poses a serious threat to personnel or ship safety or a serious risk to the marine environment, and requires immediate corrective action; and includes a lack of effective and systematic implementation of a requirement of the International Safety Management Code; marine pollution incident means the actual or probable discharge of any pollutant or other harmful substance from any vessel, platform or place on land; - 2 -

6 non-conformity means an identifiable deviation from the stated practices and conditions of the organisation's documented approved safe ship management system, which poses a risk to personnel or ship safety or to the marine environment, and requires corrective action; and includes lack of effective and systematic implementation of a requirement of the Papua New Guinea Safe Ship Management Code; objective evidence means quantitative or qualitative information, records or statements of fact pertaining to safety or to the existence and implementation of a Safety Management System element, based on observation, measurement or test, which can be verified; observation means a statement of fact made during a safety management audit and substantiated by objective evidence; owner includes Operator ; Papua New Guinea Safe Ship Management Certificate means the maritime document issued in accordance with this Regulation; Papua New Guinea Safe Ship Management Code means the Papua New Guinea Safe Ship Management Code set out in Appendix 6; Papua New Guinea ship means a ship that is registered in Papua New Guinea; Papua New Guinea waters has the same meaning as in the Act; passenger ship has the same meaning as in the Act; policy means a document developed by senior management to ensure that the operation runs smoothly in accordance with all laws and regulations and to provide a framework for objectives and standards within the business; procedure means a document that describes a process to be followed outlining who, what, how, where and when: why, what documents should be used; and who should complete them; recognised accreditation body means a quality system certification body recognised by the Authority; safe ship management system means a structured and documented system enabling ship and shore based personnel to implement the owner's safety and pollution prevention policy in accordance with the Papua New Guinea Safe Ship Management Code; Safe Operational Plan (SOP) means a plan that will enable ship owners and operators to manage the safety of persons involved in their shipping operations; safety management audit means a systematic and independent examination to determine whether the Safety Management System activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve the noted objectives; - 3 -

7 Safety Management Certificate means a document issued by the Safety Officer issued to a ship, which signifies that the Company and its shipboard management operate in accordance with the approved Safety Management System; Safety Management Manual means the document describing an organisation's safe ship management system and serving as a permanent reference in the implementation and maintenance of that system; Safety Management System means a structured and documented system enabling the Company, it s ship-based and shore based personnel to effectively implement the Company Safety Management and Environmental Protection Policy in accordance with the ISM Code; Safety Officer means an officer appointed by the Authority to develop, implement and maintain procedures to monitor the safety management systems required to be put in place by owners of shipping companies to which these Regulations apply; SOLAS means the International Convention for the Safety of Life at Sea, 1974, including the Protocols of 1978 and 1988, as amended from time to time, which amendments have been accepted by the Government; SOLAS Ship means any ship to which the International Convention for the Safety of Life at Sea, 1974 applies, namely: (a) a passenger ship engaged on an international voyage; or (b) a non-passenger ship of 500 gross tons or more engaged on an international voyage; surveyor means any suitably qualified person who has been (a) (b) recognised by the Authority as a surveyor entitled to undertake the particular functions referred to in Part B of this Regulation; and holds a valid Certificate as a surveyor issued under or by the Authority under the Merchant Shipping Act (Chapter No. 242). (2) This Regulation applies to vessels of 10 metres in length and above. (3) This Regulation does not apply to pleasure craft. (4) For the purpose of this Regulation (a) a vessel of 24 metres in length and a vessel of 150 gross tons are deemed to be of the same size and referenced to a vessel of 24 metres in length will include a vessel of 150 gross tons and vice versa; and (b) a vessel of 45 metres in length and a vessel of 500 gross tons are deemed to be of the same size and reference to a vessel of 45 metres in length will include a vessel of 500 gross tons and vice versa

8 PART II. - SHIPS TO WHICH SOLAS APPLIES. 2. APPLICATION OF PART B. (1) This part applies to all Papua New Guinea SOLAS ships, regardless of their date of construction. (2) Notwithstanding sub-section (1), the Authority may, as far as practicable, implement the provisions of the International Management Code for the Safe Operation of Ships and for Pollution Prevention (International Safety Management (ISM) Code) in respect of ships entitled to fly the flag of Papua New Guinea of 150 gross tons (24 metres in length) and over but less than 500 gross tons (45 metres in length). (3) Part II apply to foreign SOLAS ships in Papua New Guinea waters. (4) Part II does not apply to vessels to which Parts III and IV apply. 3. CHAPTER IX OF SOLAS AND INTERNATIONAL SAFETY MANAGEMENT (ISM) CODE. Chapter IX of SOLAS and the International Safety Management Code shall be incorporated into and shall have the force of law in Papua New Guinea to the extent practicable and to the extent that those provisions are consistent with these Regulations, the Act and any other laws of Papua New Guinea. 4. SAFETY MANAGEMENT SYSTEMS. (1) Every Company shall develop safety management objectives, which shall, inter alia: (a) provide for safe practices in ship operation and a safe working environment; and (b) (c) establish safeguards against all identified risks; and continuously improve safety management skills of personnel ashore and aboard ships, including preparing for emergencies related to both safety and environmental protection. (2) Every Company shall develop, implement and maintain a Safety Management System (SMS) that shall ensure (a) compliance with mandatory rules and regulations; and (b) that applicable codes, guidelines and standards recommended by IMO, classification societies, maritime industry organisations, the Act and these Regulations are taken into account. (3) Every Safety Management System shall include the following functional requirements - (a) a safety and environmental protection policy; - 5 -

9 (b) (c) (d) (e) (f) instructions and procedures to ensure safe operation of ships and protection of the environment in compliance with relevant international conventions and national legislation; defined levels of authority and lines of communication between and amongst shore and shipboard personnel; procedures for reporting accidents and incidents of non-conformity with the provisions of the Code; procedures to prepare for and respond to emergency situations; and procedures for internal audits and management reviews. (4) The Company shall establish a safety and environmental protection policy which describes how the objectives required by sub-section (1) will be achieved. (5) The Company shall designate a person within the Company who has training, knowledge and experience in Ship Operation and Safety Management Systems as the person within the Company responsible for compliance with these Regulations and the designated persons shall have immediate access to the highest level of company management at all times. (6) The Company shall ensure that the policy is implemented and maintained at all levels of the organisation, both ship-based as well as shore-based. 5. COMPANY RESPONSIBILITIES AND AUTHORITY. (1) Where the entity responsible for the operation of the ship is other than the owner, then the owner shall report the name and details of such entity to the Safety Officer. (2) The Company shall define and document the responsibility, authority and interrelation of all personnel who manage, perform and verify work relating to and affecting safety and pollution prevention. (3) The Company shall ensure that adequate resources and shore-based support are provided to enable the designated person or persons to carry out their functions. Code. (4) Both the Company and the ship shall comply with the requirements of the ISM (5) A Company shall ensure that the Safety Management System operating on board the ship contains a clear statement of the master's overriding authority and his responsibility to make decisions with respect to the safety and pollution prevention as provided for in Section 5 of the ISM Code. (6) In addition to the requirements of the SOLAS Convention and the ISM Code, every shipowner, ship s agent, crewing agency, seafarer recruitment and placement service shall, from the coming into force of this Regulation, be required to be accredited and issued, by the National Maritime Safety Authority, a certificate to recruit, place and employ seafarers under a Seafarers Employment Agreement

10 (7) No certificate of accreditation shall be issued by the National Maritime Safety Authority until an initial audit has been carried out by qualified personnel, to ensure that the necessary and satisfactory systems are in place to ensure the best possible treatment of seafarers engaged on the vessels they have recruited and placed seafarers, and to ensure the seafarer s continued health and welfare in accordance with regulations made under the Merchant Shipping Act (Chapter 242). (8) A periodic audit shall be carried out by qualified personnel at intervals not exceeding one year from the date of the initial audit and if satisfactory, the certificate of accreditation shall be renewed. (9) The fee for the initial accreditation shall be K and for successive annual audits shall be K (10) If an organization referred to in Subsection (6) fails to pass an audit for renewed accreditation, a fee of K shall be payable for each audit conducted, after the first audit, until the organization has received its accreditation certificate. (11) Evidence of an organization being in possession of a current ISO 9000 series quality systems certificates shall be given credit for such compliance in the National Maritime Safety Authority accreditation process. 6. DOCUMENT OF COMPLIANCE. (1) A Company owning or operating a ship to which this Regulation apply shall hold a Document of Compliance. (2) The document of compliance shall be issued by the Authority to a Company that complies with the requirements of Chapter IX of SOLAS and the ISM Code. years. (3) The Document of Compliance shall be issued for a period not exceeding five (4) The document of compliance shall only be issued following verification that the Safety Management System of the company complies with the requirements of the ISM Code and determination of objective evidence proving that: (a) a Safety Management System has been effectively implemented; and (b) the Safety Management System has been in operation for at least three months; and (c) a Safety Management System has been in operation for at least three months on board at least one ship of each type operated by the company. (5) The document of compliance shall be subject to annual verification within three months before or after the anniversary date to confirm the effective functioning of the Safety Management System

11 (6) The Authority may delegate the evaluation of evidence of compliance with the ISM Code to the Safety Officer or to an organisation recognised by the Authority as being capable of carrying out such evaluation, or the marine administration of another contracting government. (7) The Authority may withdraw the document of compliance if the annual verification is not requested or if there is evidence of major non-compliance with the ISM Code. (8) The master of a vessel to which this Regulation apply shall keep on board a copy of the Document of Compliance and shall, when requested, produce it for verification. (9) The Authority may issue an interim document of compliance, valid for not more than twelve months, to facilitate the initial implementation of the ISM Code, where a company is newly established, or where a new ship type has been added to an existing document of compliance, provided that the Company has fully demonstrated that it has a Safety Management System that meets the requirements of the ISM Code. 7. SAFETY MANAGEMENT CERTIFICATE. (1) The Safety Officer shall issue a Safety Management Certificate to each ship to which this Regulation applies, following an initial verification of compliance with the requirements of the ISM Code, to ensure that the company and its shipboard management system operate in accordance with the approved safety-management system. (2) The verification referred to in sub-section (1) shall include: (a) the verification that the document of compliance for the company responsible for the operation of the ship is applicable to that particular type of ship; and (b) an assessment of the shipboard Safety Management System to ensure that it complies with the requirements of the ISM Code and that it is implemented and has been functioning for at least three months aboard the ship. (3) The Safety Management Certificate shall be issued for a period not exceeding five years. (4) The Safety Officer may delegate the evaluation of evidence of: (a) compliance with the ISM Code; and (b) maintenance of a Safety -Management System, to an organisation recognised by the Authority as being capable of carrying out such evaluation, or the marine administration of another Contracting Government

12 (5) The Safety Management Certificate shall be subject to at least one intermediate verification to confirm the effective functioning of the safety management system and that any modifications carried out since the previous verification comply with the requirements of the ISM Code. (6) The Safety Officer may withdraw the Safety Management Certificate if there is evidence of major non-compliance with the approved Safety-Management Mystem. (7) The master of a vessel to which this Regulation apply shall keep on board the original Safety Management Certificate and shall, when requested, produce it for verification. (8) The Safety Officer may issue an interim Safety Management Certificate, valid for not more than six months, to new ships on delivery, or where a company takes on responsibility for the management of a ship which is new to the company, provided that (a) the company has fully demonstrated that it has a Safety Management System that meets the requirements of the ISM Code; and (b) the document of compliance is relevant to the ship; and (c) the master and senior officers are familiar with the Safety Management System and the arrangements for its implementation; and (d) the company has provided essential information and instructions to the master before sailing; and (e) the company has provided relevant information on the safety management system in the working language or languages understood by the ship's personnel; and (f) the company plans to audit the ship within three months. 8. PLANS FOR SHIPBOARD OPERATIONS AND EMERGENCY PREPAREDNESS. (1) The company shall (a) prepare plans and instructions, including checklists, for key shipboard operations concerning the safety of the ship and the prevention of pollution; and (b) define tasks and assign them to qualified personnel. (2) The company shall establish procedures to identify, describe, and respond to potential emergency shipboard situations. (3) The company shall establish programmes for drills and exercises to prepare for action in emergency situations. (4) The Safety Management System shall ensure that the company's organisation can respond at any time to hazards, accidents and emergency situations involving ships

13 9. REPORTING AND ANALYSIS OF INCIDENTS. (1) The Safety Management System shall include procedures for the reporting of non-conformities, accidents and hazardous situations to a designated company person ashore, for investigation and analysis in order to improve safety and pollution prevention. (2) The master of a ship to which these Regulations apply shall report to the company, as soon as practicable, any (a) accident or incident; or (b) hazardous occurrence; or (c) non-conformity with the Safety Management System. (3) When a report is received under Subsection (2), the designated person shall ensure that the report is reviewed and evaluated by the appropriate level of management to ensure corrective short-term and long-term action is taken and that any re-occurrence is prevented. (4) The report referred to in Subsection (3) shall be forwarded to the Safety Officer as soon as possible, but not later than seven (7) days after the occurrence of the accident/incident, by the company, together with a report on the corrective action to be taken by management for the prevention of any re-occurrence of the event. 10. MAINTENANCE OF SHIP AND EQUIPMENT. (1) The company shall establish procedures to ensure that the ship is maintained in conformity with the provisions of the relevant International Conventions, Regulations promulgated under the Act and any other applicable rules or requirements established by the company. (2) The company shall ensure that (a) inspections are held at appropriate intervals; and (b) any non-conformity is reported, together with possible cause, if known; and (c) appropriate corrective action is taken; and (d) appropriate records are maintained. (3) The company shall identify equipment and technical systems, the sudden operational failure of which, may result in a hazardous situation. (4) The company shall ensure the Safety Management System provides specific measures to promote the reliability of all equipment or systems, including (a) hull and superstructure steel work; and (b) safety, fire fighting and anti-pollution equipment; and (c) navigational equipment; and (d) steering gear; and (e) anchoring and mooring equipment; and (f) main engine and auxiliary machinery; and

14 (g) (h) (i) (j) (k) (l) (m) pipelines and valves; and cargo loading and discharging equipment; and inert gas systems; and fire, gas and heat detection systems; and bilge and ballast pumping and separator systems; and waste disposal and sewage systems; and communications equipment. (5) The measures referred to in Subsection (4) may include the regular testing of standby equipment or systems, or equipment and systems not in continuous or regular use. (6) The inspections and measures referred to in Subsections (2) to (5) shall be integrated into the ship's operational maintenance routine. 11. DOCUMENTATION. (1) Every company shall establish and maintain procedures to control all documents and data relevant to the Safety Management System. (2) The company shall ensure that (a) valid documents are available at all relevant locations; (b) documents are reviewed annually by senior management personnel with the necessary knowledge, qualifications and experience, and that changes or improvements made as circumstances require; and (c) obsolete, unnecessary or inappropriate documentation is removed as soon as possible. (3) All documentation in relation to the Safety Management System shall be kept in a form considered by the company to be most effective and approved by the Authority. (4) All documentation referred to in this section relevant to a ship should be carried on board at all times. 12. VERIFICATION AND CONTROL. (1) The company shall carry out internal audits at a frequency and to a depth necessary to verify that the operational procedures fully comply with the Safety Management System. (2) The company shall annually review and evaluate the efficiency of the Safety Management System by carrying out audits and implementing corrective action, in accordance with generally accepted audit principles and documented procedures. (3) Personnel carrying out audits shall have (a) practical experience in marine operation; and (b) practical knowledge of appropriate ship types; and

15 (c) (d) (e) knowledge of the ISM Code; and knowledge of the company and shipboard Safety Management Systems; and audit experience and training. (4) Personnel carrying out audits shall be independent of the areas being audited. (5) The results of the internal audits shall be brought to the attention of those personnel with responsibility for the area involved. (6) Management personnel responsible for the area involved shall take appropriate corrective action where any deficiencies are found. (7) The Safety Officer, or an organisation recognised by the Safety Officer, shall annually verify that the company and its shipboard management operate in accordance with the approved Safety Management System. (8) The Safety Officer, or an organisation recognised by the Safety Officer, shall annually verify the proper functioning of the ship's Safety Management System as approved. 13. GUIDELINES ON IMPLEMENTATION OF THE ISM CODE. The Safety Officer, in applying the provisions of Chapter IX of SOLAS and the ISM Code, shall, wherever practicable, follow the Guidelines on Implementation of the International Safety Management (ISM) Code by Administrations as contained in IMO Resolution A.788 (19) adopted on 23 November 1995, and the Standards on ISM Code Certification Arrangements and the form of the document of compliance and Safety Management Certificate appended thereto. 14. PORT STATE CONTROL. The owner and the master of a foreign ship to which these Regulations apply shall ensure that there is carried on board the ship either (a) a copy of the valid Document of Compliance and a valid original Safety Management Certificate; issued by or on behalf of the Flag State in accordance with Chapter IX of the International Convention for the Safety of Life at Sea 1974; or (b) equivalent documents and certificates to those referred to in Paragraph (a) which are recognised by the Authority under the Act. 15. OFFENCES AND PENALTIES. Any person who does any thing in contravention of this Part or fails to do any thing required by this Part commits an offence and shall be liable upon conviction to a fine not exceeding K25,

16 PART III. - SHIPS OTHER THAN SOLAS SHIPS THAT PROCEED BEYOND THE TERRITORIAL SEA OF PAPUA NEW GUINEA AND FISHING VESSELS AND BARGES OF 24 METRES OR MORE IN LENGTH. 16. APPLICATION OF PART C. (1) Part C applies to every Papua New Guinea ship that is (a) a ship, other than a SOLAS ship, which proceeds beyond the Territorial Sea; or (b) a fishing vessel of 24 metres or more in length; or (c) a barge of 24 metres or more in length. (2) Part C applies to every foreign ship that is (a) a ship, other than a SOLAS ship, which operates within the Exclusive Economic Zones of Papua New Guinea; or (b) a fishing vessel of 24 metres or more in length, which operates within the Exclusive Economic Zone of Papua New Guinea; or (c) a barge of 24 metres or more in length, which operates within the Exclusive Economic Zone of Papua New Guinea. (3) This Part does not apply to vessels to which Parts B and D apply. 17. SAFE SHIP MANAGEMENT SYSTEM. (1) Every owner of a ship or Company shall develop and implement a Safe Ship Management (SSM) system for any vessel to which this Part applies. (2) The owner or operator of a ship or a Company owning one or more ships to which this Part applies shall request, in writing, that the Authority approve that owner's or Company s SSM system. (3) If the Authority is satisfied that (a) the SSM system has been approved by a recognised accreditation body indicating that the owner or Company has implemented a quality assurance system which has been approved by that body and is capable of being subject to continuing audit; and (b) the scope and field of application of the quality assurance system is for the safe management of ships in accordance with the Papua New Guinea Safe Ship Management Code, then the Authority shall grant approval in writing to that owner s or Company s Safe Ship Management system. (4) For the purposes of approving a SSM system, the Authority may permit an owner or Company to operate a SSM system for an agreed period and maximum number of ships prior to the owner or Company obtaining a "Papua New Guinea Safe Ship Management Certificate"

17 (5) An owner or Company operating an approved SSM system shall maintain a record of audits, inspections, accidents, discharges in contravention of a marine protection rule, hazardous occurrences, major non-conformities, and corrective actions for all ships within the Safe Ship Management system. (6) An owner or Company operating an approved SSM system shall provide the Authority with such information from the records maintained in accordance with Paragraph (3), as the Authority may from time to time reasonably require. (7) An owner or Company operating an approved SSM system shall notify the Authority as soon as possible of (a) the name of each ship entering the approved SSM system; and (b) any change in the management structure of any ship in the approved SSM system. 18. CONDITIONS TO BE MET FOR ENTRY AND RETENTION INTO SSM SYSTEM. (1) The owner or Company to which this Part applies shall ensure that - (a) the ship belongs to an approved SSM system; and (b) a Papua New Guinea Safe Ship Management Certificate issued by the Authority is for the time being in force in respect of the ship; and (c) the ship complies with the conditions and limitations stated in the Papua New Guinea Safe Ship Management Certificate (2) No ship to which this Part applies may enter or remain in an approved SSM system unless - (a) (b) (c) the owner or Company is in possession of a Document of Compliance issued by a surveyor dated not more than twelve (12) months prior to the date the ship entered the approved SSM system, which states: (i) the particulars of the ship; and (ii) the permitted operating limits assigned to that ship; and (iii) the maximum number of passengers that may be carried; and (iv) that the ship is fit for its intended service and intended operating limits; and (v) the minimum freeboards assigned in accordance with the Load Line Regulations; and (vi) any limitations on the use of the ship, including any restrictions; and (vii) that the ship complies with the applicable Pacific Islands Maritime Legislation and Regulations; or the ship has a certificate of survey which has not expired at the date of the ship's entry into the approved Safe Ship Management system; or the ship has a new certificate issued by a surveyor within the last seven days

18 (3) The owner or Company to which this Part applies shall retain the Document of Compliance as evidence of the ship's eligibility to enter and remain in the approved SSM system. (4) The owner of a ship to which this Part applies shall ensure that the ship has a maintenance plan - (a) which includes any inspection and test requirements of the Maintenance and Survey Regulations; and (b) approved by the Authority. (5) Prior to entry of a ship into an approved SSM system, the Authority shall carry out an initial audit of the safety management of the ship to ensure compliance with the Papua New Guinea Safe Ship Management Code. (6) If the owner or Company to which this Part applies makes an application for an initial Papua New Guinea Safe Ship Management Certificate in respect of the ship, and the Authority is satisfied that a satisfactory initial audit of the ship has occurred, then he shall issue a Papua New Guinea Safe Ship Management Certificate in respect of the ship. (7) The Authority shall - (a) carry out subsequent inspections and audits of the safety management of each ship with an approved SSM system to ensure compliance with the Papua New Guinea Safe Ship Management Code and records of such inspections and audits are to be kept by the Authority; and (b) be undertaken when the ship is operational, and in its normal service. (8) The Authority shall carry out annual inspections of each ship to ensure that the ship and its equipment are being maintained in accordance with the approved maintenance plan and remain fit for their intended purpose and, if satisfied that all conditions are being met, sign the reverse of the Certificate. (9) No Papua New Guinea Safe Ship Management Certificate is to be issued by the Authority for a period exceeding the maintenance plan period required by this Part. (10) Every Papua New Guinea Safe Ship Management Certificate issued by the Authority shall be in the form shown in Appendix 5. (11) The owner or Company to which a Papua New Guinea Safe Ship Management Certificate has been issued shall ensure that a copy of the certificate is displayed in a prominent position on the ship at all times. (12) Where, in respect of a ship in an approved SSM system - (a) following an audit, or for any other reason, a corrective action is not undertaken by the owner in respect of a non-conformity; or

19 (b) following an inspection, the Authority considers that a ship or its equipment is not being maintained in accordance with the approved maintenance plan; or (c) the Authority considers that a ship is no longer fit for its intended purpose; or (d) a ship is operated in breach of these Regulations or any other Pacific Island Maritime Legislation and Regulations adopted by Papua New Guinea; or (e) the owner of a ship breaches any other conditions of the approved SSM system, the Authority may suspend the ship's Papua New Guinea Safe Ship Management Certificate. (13) Notwithstanding Subsection (12), the Authority may revoke the ship s Papua New Guinea Safe Ship Management Certificate if the owner takes no steps to comply within 30 days from the date when the ship ceases to comply with an approved SSM system. (14) The owner of a ship to which this Part applies shall notify the Authority if the ship undergoes major modification, major repair, changes its operating limits temporarily or permanently, or increases its passenger carrying capacity. (15) On receipt of the notification referred to in Subsection (14), the Authority shall ensure that the ship is not operated until either - (a) the Papua New Guinea Safe Ship Management Certificate issued by the Authority has been endorsed stating that the safety management of that ship complies with the requirements of the Papua New Guinea Safe Ship Management Code for the new condition(s); or (b) a new Papua New Guinea Safe Ship Management Certificate has been issued. 19. OFFENCES AND PENALTIES. Any person who does any thing in contravention of this Part or fails to do any thing required by this Part commits an offence and shall be liable upon conviction to a fine not exceeding K10, 000. PART IV. - SHIPS THAT DO NOT PROCEED BEYOND THE TERRITORIAL SEA OF PAPUA NEW GUINEA AND FISHING VESSELS AND BARGES OF LESS THAN 24 METRES IN LENGTH. 20. APPLICATION OF PART IV. (1) Part IV applies to every Papua New Guinea ship that is - (a) a ship, other than a fishing vessel, which does not proceed beyond the Territorial Sea of Papua New Guinea; or (b) a fishing vessel of less than 24 metres in length; or (c) a barge of less than 24 metres in length. (2) Part IV applies to every foreign ship that is - (a) a ship, other than a SOLAS ship or a fishing vessel, which operates within the Territorial Sea of Papua New Guinea; or

20 (b) (c) a fishing vessel of less than 24 metres in length that operates within the Exclusive Economic Zone of Papua New Guinea; and a barge of less than 24 metres in length that operates within the Exclusive Economic Zone of Papua New Guinea. (3) This Part does not apply to vessels to which Parts II and III apply. 21. SAFE OPERATIONAL PLAN SYSTEM. (1) Every owner of a ship or Company shall develop and implement a Safe Operational Plan (SOP) for any vessel to which this Part applies. (2) The owner of a ship or a Company owning one or more ships shall apply in writing to the Authority for approval of the SOP. (3) If the Authority is satisfied that - (a) the SOP system has been developed in accordance with acceptable models of SOP, indicating that the owner or Company has implemented a quality assurance system specific to that operation and is capable of being subject to continuing audit; and (b) the scope and field of application of the quality assurance system is for the safe management of ships in accordance with generally accepted principles for the safe operation of small craft, then the Authority shall approve that owner s or Company s Safe Operation Plan (SOP) and issue a SOP Document of Compliance. (4) Such a SOP will include the following, as applicable to the operation: (a) Company Profile, including name, address, contact persons, business and after hour s telephone, fax and e: mail addresses, etc.; (b) a list of the vessels that the owner or Company operates, their names, length, tonnage, material of construction, means of propulsion, number of crew and passenger capacity (if any); (c) a list of radio communication details, including: model and type of equipment, channels, operating frequencies, listening watches, for each vessel; (d) the procedures to be followed when developing and reporting a Passage Plan, with ETDs, ETAs, call in points or times; (e) Emergency Plans, including Muster List, Emergency Equipment Record, and Emergency Contact numbers for business and after hours; (f) a list of crew members, their training, qualifications and position on board; their status (on the vessel or on rest days) and list of contacts (next of kin); (g) policies, Procedures, Standing Orders, Rules and Instructions for the advice of master and crew for the proper and safe operation of the vessel;

21 (h) (i) (j) (k) policies, Procedures, Standing Orders, Rules and Instructions for the advice of master and crew for Occupational Health and Safety, the Protection of the Environment and for the Reporting of Accidents and Incidents; a Planned Maintenance System for major components such as anchors and windlasses, deck machinery, main and auxiliary machinery, radiocommunications equipment; checklists for Daily, Weekly, Monthly and Yearly inspections of the vessel, its machinery, communications equipment and emergency gear, highlighting areas that must be checked during those inspections; record of Audits and Inspections. (5) Prior to entry of a ship into an approved SOP system, the Authority shall carry out an initial audit of the safety management of the ship to ensure compliance with the model Safe Operational Plan. (6) The Authority, or its delegate, shall (a) carry out subsequent audits of the safety management of each ship with an approved SOP system to ensure compliance with the model Safe Operational Plan and records of such inspections and audits are to be kept by the Authority; and (b) be undertaken when the ship is operational, and in its normal service and will determine whether the ship and its equipment are being maintained in accordance with the approved maintenance plan and remain fit for their intended purpose. (7) Failure of the owner or Company to carry out the duties and functions of the SOP or failure to report or maintain the necessary records will result in the withdrawal of the SOP Document of Compliance for that ship until the deficiencies have been remedied to the satisfaction of the Authority. 22. OFFENCES AND PENALTIES. Any person who does any thing in contravention of this Part or fails to do any thing required by this Part commits and offence and shall be liable upon conviction to a fine not exceeding K5,

22 Appendix I DOCUMENT (CERTIFICATE) OF COMPLIANCE PAPUA NEW GUINEA Issued under the provisions of the INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA (SOLAS), 1974, as amended THIS IS TO CERTIFY THAT the Safety Management System of the Company has been audited and that it complies with the requirements of the International Management Code for the Safe Operation of Ships and for Pollution Prevention (ISM Code) adopted by the International Maritime Organisation by Resolution A.741(18), as amended, for the types of ship listed below (delete as appropriate): Passenger ship Passenger high speed craft Cargo high speed craft Bulk carrier Oil tanker Chemical tanker Gas carrier Mobile offshore drilling unit Other cargo ship This Document of Compliance is valid until..., subject to periodic verification. Issued at...(place of issue of the document) Date of issue... Under the authority of the Government of Papua New Guinea by... Authority of Marine (Maritime Safety Authority) Seal of the Maritime Safety Authority

23 Reverse of Document ENDORSEMENT FOR ANNUAL VERIFICATION THIS IS TO CERTIFY THAT, at the periodical verification in accordance with regulation 6 of chapter IX of the Convention, the Safety Management System was found to comply with the requirements of the ISM Code. 1st ANNUAL VERIFICATION Signed... (Signature of authorised official) Place:... Date:... 2nd ANNUAL VERIFICATION Signed:... (Signature of authorised official) Place:... Date:... 3rd ANNUAL VERIFICATION Signed... (Signature of authorised official) Place:... Date:... 4th ANNUAL VERIFICATION Signed:... (Signature of authorised official) Place:... Date:

24 Appendix II SAFETY MANAGEMENT CERTIFICATE PAPUA NEW GUINEA Issued under the provisions of the INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA (SOLAS), 1974, as amended THIS IS TO CERTIFY THAT the Safety Management System of the ship has been audited and that it complies with the requirements of the International Management Code for the Safe Operation of Ships and for Pollution Prevention (ISM Code), adopted by the International Maritime Organisation by Resolution A.741(18) as amended by that organisation, following verification that the Document of Compliance for the Company is applicable to this type of ship. Name of ship:... Distinctive number or letters: Port of registry: Type of ship:... Gross tonnage:... IMO number: Name and address of Company (see paragraph of the ISM Code) This Safety Management Certificate is valid until..., subject to periodical verification and the validity of the Document of Compliance. Issued at... (place of issue of the certificate) Date of issue......(signature of the duly authorised official issuing the certificate) Under the authority of the Government of Papua New Guinea by... Authority of Marine (Maritime Safety Authority) Seal of the Maritime Safety Authority

25 Reverse of Document ENDORSEMENT FOR PERIODICAL VERIFICATION AND ADDITIONAL VERIFICATION (IF REQUIRED) THIS IS TO CERTIFY THAT, at the periodical verification in accordance with regulation 6 of chapter IX of the Convention, the Safety Management System was found to comply with the requirements of the ISM Code. INTERMEDIATE VERIFICATION Signed... (Signature of authorised official) Place:... Date:... ADDITIONAL VERIFICATION Signed:... (Signature of authorised official) Place:... Date:... ADDITIONAL VERIFICATION Signed... (Signature of authorised official) Place:... Date:... ADDITIONAL VERIFICATION Signed... (Signature of authorised official) Place:... Date:

26 Appendix III INTERIM DOCUMENT OF COMPLIANCE PAPUA NEW GUINEA Issued under the provisions of the INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA (SOLAS), 1974, as amended THIS IS TO CERTIFY THAT the Safety Management System of the Company has been recognised as meeting the objectives of paragraph of the International Management Code for the Safe Operation of Ships and for Pollution Prevention (ISM Code) adopted by the International Maritime Organisation by Resolution A.741 (18), as amended by that organisation, for the types of ship listed below (delete as appropriate): Passenger ship Passenger high speed craft Cargo high speed craft Bulk carrier Oil tanker Chemical tanker Gas carrier Mobile offshore drilling unit Other cargo ship This Document of Compliance is valid until.... Issued at...(place of issue of the document) Date of issue... Under the authority of the Government of Papua New Guinea by... Authority of Marine (Maritime Safety Authority) Seal of the Maritime Safety Authority

27 Appendix IV INTERIM SAFETY MANAGEMENT CERTIFICATE PAPUA NEW GUINEA Issued under the provisions of the INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA (SOLAS), 1974, as amended THIS IS TO CERTIFY THAT the Safety Management System of the ship complies with paragraphs and of the Guidelines on the Implementation of the ISM Code by Administrations, adopted by the International Maritime Organisation by Resolution A.778(19) as amended by that organisation. Name of ship:... Distinctive number or letters:... Port of registry:.... Type of ship:.... Gross tonnage:... IMO number:... Name and address of Company: This Interim Safety Management Certificate is valid until..... Issued at...(place of issue of the certificate) Date of issue... Under the authority of the Government of Papua New Guinea by... Authority of Marine (Maritime Safety Authority) Seal of the Maritime Safety Authority

28 Appendix V SAFE SHIP MANAGEMENT CERTIFICATE PAPUA NEW GUINEA Issued under the provisions of Regulations 19(6) and 19(10) of the Shipping (Safety Management System) Regulations 20YY THIS IS TO CERTIFY THAT the Safe Ship Management System of the ship has been audited and that it complies with the requirements of the Papua New Guinea Safe Ship Management Code and that the ship and its equipment remain fit for their intended purpose. Name of ship:... Port of registry:... Official Number:.... Gross tonnage:.... Name and Address of Owner: The above ship shall not proceed beyond the following operating limits: The above ship shall not carry more than the following number of passengers:. Lifesaving appliances are provided for a total number of... persons. by... (organisation managing an approved safe ship management system) This certificate is valid until...(subject to periodical audit/inspection of the ship.) Date of issue... Under the authority of the Government of Papua New Guinea by.. Authority of Marine (Maritime Safety Authority) Seal of the Maritime Safety Authority

29 Appendix VI PAPUA NEW GUINEA SAFE SHIP MANAGEMENT CODE. ARRANGEMENT OF SECTIONS. Preamble 1. General 1.1 Definitions 1.2 Objectives 1.3 Functional Requirements for a Safe Ship Management System 2. Safety and Environmental Protection Policy 3. Owner Responsibilities and Authority 4. Designated Person 5. Master's Responsibility and Authority 6. Resources and Personnel 7. Development of Plans for Shipboard Operations 8. Emergency Preparedness 9. Reports and Analysis of Non-Conformities, Accidents and Hazardous Occurrences 10. Maintenance of the Ship and Equipment 11. Documentation 12. Owner Verification, Review and Evaluation 13. Certification, Verification and Control Preamble (1) The purpose of this Code is to provide a standard for the safe management and operation of Papua New Guinea's domestic shipping and for pollution prevention. (2) Recognising that no two shipping companies or shipowners are the same, and that ships operate a wide range of services under different conditions, the Code is based on general principles and objectives. These general principles and objectives are as applicable to a single small ship organisation as to a shipowner with a fleet of large ships. (3) The Code is expressed in broad terms so that it can have a widespread application. Clearly, different levels of management, whether shore based or at sea, will require varying levels of knowledge and awareness of the items outlined. (4) The cornerstone of good safety management is commitment from the top. In matters of safety and pollution prevention it is the commitment, competence, attitudes and motivation of all individuals at each level that determines the end result. 1. General 1.1 Definitions Code means the Papua New Guinea Safe Ship Management Code: Papua New Guinea Waters has the same meaning as in the Act. 1.2 Objectives The objectives of the Papua New Guinea Safe Ship Management Code are to ensure safety at sea, prevention of human injury or loss of life, and avoidance of damage to the environment, in particular to the marine environment, and to property

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