NVIC 02-13: Guidance implementing the Maritime Labour Convention

Commandant 2703 Martin Luther King Jr Ave SE United States Coast Guard Stop 7501 Washington, DC 20593-7501 Staff Symbol: CG-CVC Phone: (202) 372-1224 COMDTPUB P16700.4 NVIC 02-13, CH-1 15 SEPT 2017 NAVIGATION AND VESSEL INSPECTION CIRCULAR (NVIC) NO. 02-13, CH-1 Subj: CH-1 TO GUIDANCE IMPLEMENTING THE MARITIME LABOUR CONVENTION, 2006, NVIC 02-13, COMDTPUB P16700.4 Ref: (a) Amendments of 2014 to the Maritime Labour Convention, 2006 (b) Information and Life Cycle Management Manual, COMDTINST M5212.12 (series) (c) Guidance Implementing the Maritime Labour Convention 2006, NVIC 02-13, COMDTPUB P16700.4

Guidance Implementing the Maritime Labour Convention, 2006 — PURPOSE. This Notice publishes change one to Reference (c).

PURPOSE. This Notice publishes change one to Reference (c).

Guidance Implementing the Maritime Labour Convention, 2006 — ACTION. All Coast Guard unit commanders, commanding officers, officers-in-charge,

deputy/assistant commandants, chiefs of headquarters staff elements, and participating personnel shall ensure that the provisions of this circular are followed. Internet release is authorized.

Guidance Implementing the Maritime Labour Convention, 2006 — DIRECTIVES AFFECTED. Guidance Implementing the Maritime Labour Convention

2006, NVIC 02-13, COMDTPUB P16700.4 is changed in accordance with this Notice.

Guidance Implementing the Maritime Labour Convention, 2006 — DISCUSSION. The 2014 Amendments to the Maritime Labour Convention established

requirements for shipowners to provide financial security for the repatriation of seafarers (Regulation 2.5.2) and financial security relating to shipowners’ liability in cases of seafarer injury or death (Regulation 4.2.1). In addition, a “certificate or other documentary evidence” of the required financial securities is to be carried on board the vessel. This NVIC provides explanation and guidance that describe how these new provisions conform with existing national laws and regulations, collective bargaining agreements, and established industry practices. DISTRIBUTION – SDL No. 162 a b c d e f g h i j k l m n o p q r s t u v w x y z A B X X X X C X X X D E X F G H NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 02-13, CH-1

Guidance Implementing the Maritime Labour Convention, 2006 — DISCLAIMER. The guidance in this NVIC is not a substitute for applicable legal

requirements, nor is it, in itself, a regulation. It neither imposes nor intends to impose legally- binding requirements on any party. It represents the Coast Guard’s current thinking on this topic and may assist industry, mariners, the general public, and the Coast Guard, as well as other federal and state regulators, in applying statutory and regulatory requirements. You may use an alternative approach for demonstrating voluntary compliance with the standards of the MLC if you determine that the approach will satisfy the relevant provisions within the Convention, although this will not exempt you from complying with applicable United States law and regulations. If you want to discuss an alternative approach (you are not required to do so), you may contact the local Coast Guard OCMI who is responsible for implementing this guidance.

Guidance Implementing the Maritime Labour Convention, 2006 — MAJOR CHANGES. The Statement of Voluntary Compliance Declaration of Maritime

Labour Compliance (SOVC-DMLC) Part I, SOVC-DMLC Part II and Owner/Operator Declaration of Maritime Labour Compliance (Enclosures (4), (5) and (6) respectively) have been updated to reflect the requirements relating to financial security for the repatriation of seafarers (Regulation 2.5.2) and financial security relating to shipowners’ liability in cases of seafarer injury or death (Regulation 4.2.1). In addition, a new form letter has been provided in Enclosure (12) which will serve as documentary evidence of financial security. All changes are underlined in the final version and each changed page is annotated with CH-1 in the footer.

Guidance Implementing the Maritime Labour Convention, 2006 — QUESTIONS. Questions or concerns regarding this policy may be directed to Commandant

(CG- CVC-1) at (202) 372-1208, or CG-CVC-1@uscg.mil.

Guidance Implementing the Maritime Labour Convention, 2006 — RECORDS MANAGEMENT CONSIDERATIONS. This NVIC has been thoroughly

reviewed during the directives clearing process, and it has been determined that there are records scheduling requirements, in accordance with Reference (b).

Guidance Implementing the Maritime Labour Convention, 2006 — ENVIRONMENTAL ASPECT AND IMPACT CONSIDERATIONS. Environmental

considerations under the National Environmental Policy Act (NEPA) were examined in the development of this Instruction. This Instruction included preparation of guidance documents that implement, without substantive change, the applicable Commandant Instruction or other federal agency regulations, procedures, manuals, and other guidance documents. It is categorically excluded from further NEPA analysis and documentation requirements under Categorical Exclusion (33) as published in COMDTINST M16475.1 (series), Figure 2-1. A Record of Environmental Consideration is not required.

Guidance Implementing the Maritime Labour Convention, 2006 — FORMS/REPORTS. This NVIC contains a collection of information under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501-3520) (PRA). The Office of Management and Budget (OMB) reviewed the Coast Guard’s MLC information collection request, approved it, and issued OMB Control Number 1625-0118. An agency may not conduct a collection of information unless the collection of information displays a valid control number assigned by OMB. You do not need to respond to a collection of information unless it displays a currently valid control number from OMB. NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 02-13, CH-1 J. P. NADEAU /s/ Rear Admiral, U.S. Coast Guard Assistant Commandant, Prevention Policy Enclosures: (1) MLC Inspection Guidelines for U.S. Commercial Vessels on International Voyages

(2) Definitions

(3) SOVC-MLC

(4) SOVC-DMLC Part I

(5) SOVC-DMLC Part II Template

(6) Owner/Operator Declaration of Maritime Labour Compliance

(7) SOVC-IMLC

(8) Hazardous work and consideration on Health and Safety Issues for Seafarers under the age of 18

(9) Guidelines for Ships Cook Competency

(10) Guidelines for On Board Complaints Procedures

(11) USCG MLC Inspection Report

(12) Documentary Evidence of Financial Security Commandant 2703 Martin Luther King Jr Ave SE United States Coast Guard Stop 7501 Washington, DC 20593-7501 Staff Symbol: CG-CVC Phone: (202) 372-1224 COMDTPUB P16700.4 NVIC 02-13 30 JUL 2013 NAVIGATION AND VESSEL INSPECTION CIRCULAR (NVIC) NO. 02-13 Subj: GUIDANCE IMPLEMENTING THE MARITIME LABOUR CONVENTION, 2006 Ref: (a) Maritime Labour Convention, 2006

(b) Information and Life Cycle Management Manual, COMDTINST M5212.12 (series) 1.

PURPOSE.

This NVIC is intended to provide guidance for Coast Guard marine inspectors, Recognized Classification Societies (RCS) that are authorized to issue international convention certificates on behalf of the Coast Guard, and U.S. vessel owners/operators on the U.S. laws and regulations, or other measures, conforming to the provisions of Reference (a).

Through this NVIC, the Coast Guard is establishing a voluntary inspection program for vessel owners/operators who wish to document compliance with the standards of the Maritime Labour Convention, 2006 (MLC).

United States commercial vessels that operate on international routes, meaning those ships that will enter the ports of countries that are parties to the MLC, are encouraged to participate. 2.

ACTION.

All Coast Guard unit commanders, commanding officers, officers-in-charge, deputy/assistant commandants, chiefs of headquarters staff elements, and participating personnel shall ensure that the provisions of this circular are followed.

Internet release is authorized. 3.

DIRECTIVES AFFECTED.

None. 4.

BACKGROUND. a.

The 94th (Maritime) Session of the International Labour Conference (ILC) (Geneva, February 2006) adopted the MLC, an important new international agreement that consolidates almost all of the 70 existing International Labour Organization (ILO) maritime labour instruments into a single modern, globally-applicable legal instrument.

The MLC establishes comprehensive minimum requirements for working conditions of DISTRIBUTION – SDL No. 162 a b c d e f g h i j k l m n o p q r s t u v w x y z A B X X X X C X X X D E X F G H NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 02-13 seafarers, including conditions of employment, hours of work and rest, accommodations, recreational facilities, food and catering, health protection, medical care, welfare, and social security protection.

It combines rights and principles with specific standards and detailed guidance as to how to implement these standards at the national level.

The Convention comprises three different, but related, parts: the Articles, the Regulations, and the Code.

The Articles and the Regulations set out the core rights and principles and the basic obligations of members ratifying the Convention.

The Code contains the details for the implementation of the Regulations.

The Code comprises Part A (mandatory standards) and Part B (non-mandatory guidelines). b.

The MLC provides a large measure of flexibility to ratifying countries as to how they will implement its provisions under Part A.

The major areas of flexibility in the MLC include—

(1) Unless specified otherwise in the Convention, national implementation may be achieved through national laws or regulations, through collective bargaining agreements, or through an already established industry practice;

(2) Implementation may also be achieved through measures that are considered “substantially equivalent” to the MLC standards, provided the implementing country satisfies itself that the relevant legislation or other implementing measure achieves the general object and purpose of the pertinent provisions in the Convention;

(3) In certain circumstances, the application of details in the Code may be relaxed for some smaller vessels; and

(4) While all vessels covered by the Convention must be inspected for compliance with its requirements, flag-State administrations are not required to certify and provide documentation for vessels less than 500 gross tonnage. 5. DISCUSSION. a. The MLC enters into force on 20 August 2013. Under the MLC, certain vessels flagged by ratifying countries are required to maintain a valid MLC certificate issued by their flag administration. As of the effective date of this NVIC, the United States has not ratified the MLC. Until such time that the United States ratifies the MLC, the Coast Guard cannot mandate enforcement of its requirements for U.S. vessels or for foreign vessels while operating on the navigable waters of the United States. However, Article V, Paragraph 7, of the Convention contains a “no more favorable treatment clause” that requires ratifying governments to impose Convention requirements on all vessels—even those from a non-ratifying government—when calling on their ports. As a result, U.S. vessels that cannot demonstrate compliance with the MLC may be at risk for Port State Control actions, including detention, when operating in the port of a ratifying nation. The MLC page on the ILO’s website provides a comprehensive source of information about the Convention, including a complete list of ratifying countries, inspection guidelines

(Guidelines for Flag State Inspections and for Port State Inspections), relevant news concerning the Convention, and electronic copies of the Convention for free download.

The MLC page can be found under the “Labour Standards” tab on the ILO’s main NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 02-13 website (www.ilo.org).

Vessel owners or operators should review the ILO’s list of ratifying countries to determine if they may be impacted during a foreign voyage. b.

Under the MLC, ratifying governments must require owners/operators of certain vessels 500 gross tonnage or more as measured under the convention measurement system, hereafter "GT ITC,” to demonstrate that the working and living conditions on board the vessel are in keeping with the Convention requirements, and to maintain compliance certificates.

Ratifying governments must accept these certificates as prima facie evidence of compliance with the MLC.

The Coast Guard intends to issue a Statement of Voluntary Compliance-Maritime Labour Convention (SOVC-MLC) certificate to U.S. flagged- vessels demonstrating compliance with the U.S. laws and regulations or other measures conforming to the MLC requirements.

Thus, the owner/operator of a U.S. vessel, while not required to possess a SOVC-MLC, may obtain one for evidence of voluntary compliance with the standards of the MLC. c.

This NVIC contains a summary of applicable U.S. laws and regulations and other measures meeting the standards of the Convention.

Where the United States has satisfied itself that certain laws and regulations or other measures are conducive to the achievement of the general objective of the specific provision, this NVIC specifies where such substantial equivalency is used.

This NVIC underwent a public comment period during which the Coast Guard received comments from concerned seafarers and owner or operator organizations. d.

Through the promulgation of this NVIC, the Coast Guard is requesting Recognized Classification Societies (RCS) to conduct MLC compliance inspections and issue SOVCs at the request of vessel owners/operators.

The RCS have the training and resources available to carry out inspections consistent with the MLC.

The Coast Guard does not intend to conduct voluntary MLC inspections for vessels that are classed and can obtain this inspection from their respective RCS.

Vessel owners/operators should contact their RCS to schedule a MLC compliance inspection.

The RCS should use the guidance outlined in Enclosure (1) when conducting compliance inspections.

For inspections conducted by the Coast Guard, Officers in Charge, Marine Inspection (OCMIs) shall direct their staffs to use the guidance in Enclosure (1) when conducting voluntary inspections on applicable U.S. vessels for the issuance of a SOVC-MLC.

Enclosure (2) to this NVIC also includes the definitions of “seafarer,” “ship,” and “shipowner,” for the purpose of the MLC. e.

United States vessels that are unable to demonstrate compliance with the MLC may be subject to Port State Control (PSC) actions when engaged on international voyages to countries that have ratified the MLC.

Through receipt of an SOVC-MLC, a vessel is recognized by the United States as being “certified” to the standards of the MLC.

However, foreign Port State Authorities are not obligated to accept the SOVC-MLC as prima facie evidence of compliance.

Therefore, owners or operators should ensure that they are able to demonstrate to PSC Authorities the compliance measures they have put in place for their vessels.

To better manage inspection resources, OCMIs should focus inspections on vessels that routinely operate in the ports of MLC-ratifying nations.

NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 02-13 f.

Specific vessel applicability:

(1) Vessels 500 GT ITC or more engaged on International Voyages. United States commercial vessels of 500 GT ITC or more that engage on international voyages may be “certified” as having demonstrated compliance with the U.S. laws and regulations or other measures conforming to the MLC requirements through possession of a SOVC-MLC, which is in keeping with Regulation 5.1.3 of the Convention.

(2) Vessels less than 500 GT ITC engaged on International Voyages. United States commercial vessels, including uninspected commercial vessels, less than 500 GT ITC that engage on international voyages to ports of MLC-ratifying nations may also be required to demonstrate compliance with the U.S. laws and regulations or other measures conforming to the requirements of the MLC. The Convention does not require these vessels to be issued compliance certificates. However, it is recommended that these vessels voluntarily comply with the requirements of the MLC and develop their own Declaration of Maritime Labour Compliance (DMLC). See Enclosure (1) for further details.

(3) Vessels exclusively operating on the inland waters of the United States do not fall within the definition of “vessel” in Article II (1)(i) of the Convention. For the purpose of the voluntary inspection program, the United States will also consider the Great Lakes and the waters east of the Juan de Fuca Strait as inland waters. Therefore, vessels navigating exclusively in these areas are exempt from any requirements of the MLC imposed by ratifying governments.

(4) Until such time that the United States ratifies the MLC, vessels that do not operate in ports of MLC-ratifying nations are not required to be in compliance with the Convention. Owners/operators of U.S. commercial vessels who would like to obtain an SOVC should request an MLC inspection from an RCS as part of a regularly scheduled survey, or from the Coast Guard as part of their inspection for certification.

(5) The Coast Guard is working with Transport Canada to address those vessels that transit on waters bordering both countries. It is envisioned that certain vessels operating exclusively between ports in the United States and Canada could demonstrate conformance with MLC standards through compliance with existing U.S. laws, regulations and other measures. g. The MLC specifies 14 areas that are subject to a mandatory compliance for certification and the issuance of compliance certificates. In order for the Coast Guard to issue a SOVC to a U.S. commercial vessel, the areas that must be inspected and certified as meeting the requirements of U.S. laws and regulations or other measures conforming to the MLC are—

(1) Minimum age (Regulation 1.1) NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 02-13

(2) Medical certification (Regulation 1.2)

(3) Qualifications of seafarers (Regulation 1.3)

(4) Use of any licensed or certified or regulated private recruitment and placement services (Regulation 1.4)

(5) Seafarers’ employment agreements (Regulation 2.1)

(6) Payment of wages (Regulation 2.2)

(7) Hours of work and rest (Regulation 2.3)

(8) Manning levels for the ship (Regulation 2.7)

(9) Accommodation (Regulation 3.1)

(10) Onboard recreation facilities (Regulation 3.1)

(11) Food and catering (Regulation 3.2)

(12) Onboard medical care (Regulation 4.1)

(13) Health and safety and accident prevention (Regulation 4.3)

(14) Onboard complaint procedures (Regulation 5.1.5) h. The possession of a SOVC-MLC, form number CG-16450 (see example in Enclosure

(3)), is intended to provide prima facie evidence that the vessel is in compliance with the U.S. laws and regulations or other measures conforming to the Convention requirements. The format of the SOVC-MLC certificate is consistent with the sample MLC certificate provided in the Code of the MLC and will be supplemented with a Statement of Voluntary Compliance-Declaration of Maritime Labour Compliance (SOVC-DMLC). The SOVC-DMLC is a unique two-part form that must be completed by the Coast Guard or RCS and the vessel owner/operator. Consistent with the MLC requirements, once issued, the SOVC-MLC and SOVC-DMLC should be posted on the vessel in a conspicuous place available to the seafarers. Each RCS should develop its own versions of the SOVC-MLC and Part I of the SOVC-DMLC. The following paragraphs provide additional details:

(1) The SOVC-MLC is issued by the Coast Guard or an RCS.

(2) The SOVC-DMLC Part I, form number CG-16450B, is prepared by the Coast Guard and references current U.S. laws, regulations, or other measures conforming to the Convention requirements. As previously stated, the RCS should develop their own version of the SOVC-DMLC Part I. Through this NVIC, the Coast Guard is requesting the RCS to sign its own version of the SOVC-DMLC Part I on behalf of the Coast Guard. The information required in SOVC-DMLC Part I must conform to the template in Enclosure (4). Any changes to the content of the SOVC-DMLC Part I must be approved by the Coast Guard. See Enclosure (1) for further details.

(3) The SOVC-DMLC Part II (see template in Enclosure (5)) must be prepared by the vessel owner/operator. This format follows that of the sample DMLC Part II provided in the Convention. It should document the measures put in place to ensure ongoing compliance with the standards of the SOVC-DMLC Part I. A template for the SOVC-DMLC Part II is also available for free download on the Coast Guard’s Homeport website under the Domestic Vessels/Domestic Vessel General tab. Once the SOVC-DMLC Part II is prepared, the Coast Guard or RCS will review the measures drawn up by the vessel owner/operator and, following a successful inspection, endorse Part II of the SOVC-DMLC. NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 02-13 6. DISCLAIMER. The guidance in this NVIC is not a substitute for applicable legal requirements, nor is it, in itself, a regulation. It neither imposes nor intends to impose legally- binding requirements on any party. It represents the Coast Guard’s current thinking on this topic and may assist industry, mariners, the general public, and the Coast Guard, as well as other federal and state regulators, in applying statutory and regulatory requirements. You may use an alternative approach for demonstrating voluntary compliance with the standards of the MLC if you determine that the approach will satisfy the relevant provisions within the Convention, although this will not exempt you from complying with applicable United States law and regulations. If you want to discuss an alternative approach (you are not required to do so), you may contact the local Coast Guard OCMI who is responsible for implementing this guidance. 7. QUESTIONS. Questions or concerns regarding this policy may be directed to Commandant

(CG- CVC-1) at (202) 372-1224, or CG-CVC-1@uscg.mil. 8. RECORDS MANAGEMENT CONSIDERATIONS. This NVIC has been thoroughly reviewed during the directives clearing process, and it has been determined that there are records scheduling requirements, in accordance with Reference (b). 9. ENVIRONMENTAL ASPECT AND IMPACT CONSIDERATIONS. Environmental considerations under the National Environmental Policy Act (NEPA) were examined in the development of this Instruction. This Instruction included preparation of guidance documents that implement, without substantive change, the applicable Commandant Instruction or other federal agency regulations, procedures, manuals, and other guidance documents. It is categorically excluded from further NEPA analysis and documentation requirements under Categorical Exclusion (33) as published in COMDTINST M16475.1

(series), Figure 2-1. An Environmental Checklist and Categorical Exclusion Determination are not required. 10. FORMS/REPORTS. This NVIC contains a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) (PRA). This collection of information has been submitted to the Office of Management and Budget (OMB) for review in accordance with the PRA. An agency may not conduct a collection of information unless the collection of information displays a valid control number assigned by OMB. You do not need to respond to a collection of information unless it displays a currently valid control number from OMB. Before the Coast Guard could enforce the collection of information referenced in this notice, OMB would need to approve the Coast Guard’s pending request to collect this information. JOSEPH A. SERVIDIO /s/ Rear Admiral, U.S. Coast Guard Assistant Commandant, Prevention Policy NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 02-13 Enclosures: (1) MLC Inspection Guidelines for U.S. Commercial Vessels on International Voyages

(2) Definitions

(3) SOVC-MLC

(4) SOVC-DMLC Part I

(5) SOVC-DMLC Part II Template

(6) Owner/Operator Declaration of Maritime Labour Compliance

(7) SOVC-IMLC

(8) Hazardous work and consideration on Health and Safety Issues for Seafarers under the age of 18

(9) Guidelines for Ships Cook Competency

(10) Guidelines for On Board Complaints Procedures

(11) USCG MLC Inspection Report