The Small Commercial Yacht Code (hereinafter referred to as “sCYC”) is applicable to small yachts engaged in commercial activity when it came into force on the 1st of April 2024. It supersedes and replaces the relevant provisions of the Commercial Yacht Code 2020 (CYC) for commercial yachts under twenty-four (24) metres in Length and applies exclusively to commercial yachts with hull lengths of twelve (12) metres up to twenty-four (24) metres length.
The sCYC provides a streamlined regulatory framework that meets the unique needs of small commercial yachts operating in Malta. By prioritizing yacht construction standards, stringent safety requirements, qualified manning, and environmental compliance, the sCYC ensures the safety and sustainability of Maltese waters while accommodating the practical requirements of smaller vessels.
Additionally, it offers yacht owners in Malta several advantages, including simplicity of compliance, safety assurance, and international recognition. It encourages high standards while making it simple for smaller yacht operators to comply. Malta is a reputable international centre for ship registrations. By offering a user-friendly framework, the sCYC encourages owners to register their vessel under the Maltese flag.
The main scope of the sCYC is to provide leaner requirements to small vessels that engage in commercial activity. The requirements are easier to meet rather that those vessels which fall under the scope of the Commercial Yacht Code. It is structured around several core components namely, yacht construction, safety equipment, manning requirements, operational procedures, and environmental compliance. Each section provides clear guidelines that ensure both the safety of those onboard and the preservation of Malta’s waters.
One of the fundamental aspects of the sCYC is the emphasis on yacht construction standards. Vessels which report to the sCYC must be built with materials and structures that can withstand the specific demands of commercial use. This includes ensuring the structural integrity of the hull and the durability of on-board facilities. It further outlines the minimum requirements for construction based on the size and intended use of the yacht, and such requirements must be verified before a yacht can obtain a commercial registration. Additionally, yachts must adhere to specific stability and watertight integrity standards, minimizing risks of capsizing or flooding.
Safety is also a critical component of the sCYC. Small yachts must carry essential equipment, such as life jackets, fire extinguishers, first aid kits, and emergency signalling devices. It outlies the procedure for routine fire drills and adequate checks. This is mandatory to ensure that crew is prepared for any emergencies which may arise.
Requirements for crew qualifications is also laid down in the sCYC. This is to ensure that all crew involved in the operation of the yacht has adequate training and certification. In fact, the sCYC aligns with International Maritime Standards which hence requires captains and crews to hold certificates issued from recognized maritime authorities.
Commercial yachts must meet operational compliance standards that regulate navigation, on-board procedures, and passenger management to be able to operate under the sCYC. Those yachts which operate commercially in Malta must abide by rules governing waste disposal, fuel management and pollution prevention to be in compliance with the sCYC on environmental conservation.
It is crucial to understand that once a yacht owner obtains a commercial certificate, it must be renewed annually. Prior to issuing this renewal, authorities conduct a rigorous onboard inspection to ensure full compliance with the sCYC. Failure to meet the required standards can lead to the non-renewal of the commercial certificate, effectively stripping the yacht owner of their ability to trade. Without immediate compliance, the yacht will remain barred from commercial operations, which could lead to severe financial losses and a significant disruption to business activities.
At GTG, we can provide essential assistance to yacht owners operating under the sCYC by ensuring compliance with safety, crew, and operational regulations while also obtaining necessary certifications, drafting and reviewing contracts, managing liability, advising on employment law in relation to seafarers, offering dispute resolution services, registering the yacht, and communicating with transport Malta and other authorities to ensure the yacht operates lawfully and effectively in a commercial capacity.
Author: Sarah M. Vella
For assistance, please contact us at info@gtg.com.mt