1. “Authority”: the Civil Aviation and Maritime Navigation Authority;
2. “Register”: the Naval Register of the Republic of San Marino;
3. “Pleasure Craft”: vessels used for recreational navigation, even when used for commercial purposes as the subject of rental or leasing contracts.
   
   This definition includes:
   
   1. “Pleasure Craft”: rowing vessels and vessels with a hull length of less than 10 metres;
   2. “Pleasure Boat”: vessel with a hull length of between 10 and 24 metres;
   3. “Pleasure Ship”: vessel with a hull length greater than to 24 meters.
      “Commercial Unit”: any other unit other than Pleasure Craft and used for the transport of people or goods, or other commercial activities;
4. “Vessel”: Pleasure Craft and Commercial Craft without distinction;
5. “Representative”: an agent, a natural person resident or a company with registered office in the Republic of San Marino appointed pursuant to Article 32 by the owner and the shipowner, if different from the owner, of the Vessel registered in the Register and responsible for communications and notifications with the Authority. In the cases referred to in Articles 26 and 64 of this law, the Representative is appointed by the lessee or user under a lease or financial lease agreement.

Powers and functions of the Authority

The Authority has administrative and technical management functions in matters of maritime navigation on Ships flying the flag of San Marino. In particular, it carries out the following functions:

a) issues regulations, directives and circulars;
b) prepares regulatory projects on the subject;
c) issues qualifications and certifications in maritime matters;
d) delegates third-party bodies to operate on behalf of the Authority in carrying out technical activities in the maritime sector;
e) monitors the performance of maritime activities;
f) maintains relations with international technical bodies in the sector;
g) monitors and determines, also through delegated bodies or subjects, the state of navigability of ships flying the San Marino flag;
h) ensures the maintenance of the Naval Register;
i) issues, suspends, modifies or revokes any certificate, licence, permit, authorisation or any other provision issued on the basis of this law or on the basis of the Authority’s regulations in the event of their violation or where required in order to guarantee maritime safety;
l) carries out on-board inspections as well as investigations into accidents involving ships flying the flag of San Marino, also through delegated bodies or subjects;
m) takes, in collaboration with the authorities of the State in whose waters they are located, the appropriate measures for the rescue of ships registered in the Register of San Marino or for the removal or recovery of wrecks of the same;
n) imposes the administrative sanctions within its jurisdiction;
o) annually presents a report to the competent council commission on the progress of the maritime sector;
p) establishes the tariffs for its services.

The Authority is legally represented by its General Director. In carrying out their functions, the General Manager and the employees of the Authority assume the qualification of public officials.
In carrying out some functions relating to the management and promotion of the Register, the Authority may be assisted by third parties following the stipulation of specific agreements.

Naval Register

The Naval Register kept by the Authority includes the following sections:

a) Commercial Section containing the registrations, transcriptions, entries and annotations relating to Commercial Units;
b) Recreational Section containing the registrations, transcriptions, entries and annotations relating to Recreational Units.

Qualification of technical bodies

In carrying out its activities and functions, the Authority may avail itself, following specific qualification, of technical bodies with proven experience in the sector.
The requirements and the procedures for the qualification of technical bodies are specified by means of a specific regulation issued by the Authority.

Language of documentation

All documentation requested by the Authority in carrying out its functions may be presented in Italian or English. This rule also applies to any other type of communication addressed to the Authority.
The Authority may use the English language in carrying out all its functions where required or deemed more suitable.

Applicableity of international conventions

The international conventions ratified and implemented by the Republic of San Marino apply to the relationships governed by them even in the absence of the elements of internationality or connections with a contracting State required by the conventions themselves.

Law governing acts performed on board ships

In the absence of closer connections with another legal system or a choice of applicable law agreed by the parties after the event, the acts and facts that occur on board a ship registered in the Register are governed by the law of the Republic of San Marino.

Law applicable to ownership, real rights and real rights of guarantee

Ownership, real rights and rights of guarantee on ships are governed by the law of the State in whose register the ship is registered.
Special privileges on ships are governed by the International Convention for the Unification of Certain Rules Relating to Naval Liens and Mortgages concluded in Brussels on 10 April 1926 and any subsequent amendments.

Law applicable to the powers and duties of the master

The powers and duties of the master of the ship as head of the maritime expedition are governed by the law of the State in whose register the ship is registered.

Law applicable to the liability of the shipowner

The liability of the shipowner is governed by the law of the State in which the shipowner has his habitual residence, if a natural person, or his principal place of business, if a legal person.
The liability of the shipowner for collisions of ships is governed by the Brussels Convention of 23 September 1910 for the Unification of Certain Rules Relating to Collisions between Ships and the London Convention of 20 October 1972 on the International Regulations for Preventing Collisions at Sea (COLREG) and any subsequent amendments.
The limitation of the shipowner’s liability is governed by the London Convention of 19 November 1976 on Limitation of Liability for Maritime Claims (LLMC), as amended by the Protocol of 2 May 1996 and any subsequent amendments.
The liability of the shipowner for oil pollution is governed by the Brussels Convention of 29 November 1969 on Civil Liability for Oil Pollution Damage (CLC), as amended by the Protocols of 29 November 1976 and 27 November 1992 and any subsequent amendments.

Law applicable to employment contracts

The employment contracts of the master and crew are governed by the law agreed upon by the parties or, in the absence of such designation, by the law of the State in which the shipowner has his habitual residence, if a natural person, or his principal place of business, if a legal person, without prejudice in any case to compliance with the Conventions of the International Labour Organization (ILO) ratified and implemented by the Republic of San Marino.

Law applicable to contracts relating to the commercial use of ships

The Brussels Convention of 25 August 1924, as amended by the Protocols of 23 February 1968 and 21 December 1979 and any subsequent amendments, applies to the contract for the carriage of goods by sea.
The Athens Convention of 13 December 1974, as amended by the Protocols of 19 November 1976, 29 March 1990 and 1 November 2002 and any subsequent amendments, applies to the contract for the carriage of passengers by sea.
For anything not provided for by the international conventions referred to in the previous paragraphs of this article, lease, rental, transport, towing and other contracts relating to the commercial use of the vessel are governed by the law agreed upon by the parties or, in the absence of such designation, by the law of the State in which the shipowner has his habitual residence, if a natural person, or his principal place of business, if a legal person.
Financial leasing contracts for vessels and financing contracts for the purchase or construction of vessels are governed by the law agreed upon by the parties or, in the absence of such designation, by the law of the State in which the financing entity has his habitual residence, if a natural person, or his principal place of business, if a legal person.
The methods of registration of vessels under construction will be defined by a specific Implementing Regulation, prepared by the Authority itself.

Salvage and general average

Salvage carried out by or in favour of vessels registered in the Register is governed by the London Conventiona of 28 April 1989 and any subsequent amendments.
General average relating to vessels registered in the Register is governed by the York and Antwerp Rules in the wording in force at the time of the accident.

Choice of applicable law

The choice of applicable law must be expressed or clearly result from the provisions of the contract.

Jurisdiction

The Court of the Republic of San Marino has exclusive jurisdiction to decide disputes relating to the registration and cancellation of vessels from the Register as well as any other transcription, entry or annotation in said register.

Exceptions to jurisdiction

Without prejudice to the mandatory rules on jurisdiction jurisdiction, the parties may agree, by means of a written clause or in another manner consistent with international trade practices, on the designation of the competent jurisdiction or competent arbitrators, exclusively or alternatively, for disputes relating to the relationships in question, with the exception of the above.

Samanian flag

Vessels registered in the Register are considered to be of San Marino nationality and authorised to fly the flag of San Marino.
The requirements of the Sammarinese flag are identified through a specific regulation of the Authority.

Identification data of Sammarinese vessels

Vessels are identified by:

a) the name;
b) the registration number in the Register;
c) the tonnage;
d) the number IMO.
The name must be approved by the Authority.
The tonnage must be certified, in accordance with current international regulations by a body authorized by the Authority.

Requirements for admission to navigation

The following vessels are admitted to navigation:

a) registered in the Register;
b) in navigable condition;
c) classified at the highest level for the corresponding type by a body authorized by the Authority.

Certificate of registration

Admission to navigation is certified by the issue, by the Authority, of the certificate of registration.
The certificate of registration indicates:

a) name of the vessel;
b) type of vessel;
c) gross tonnage and net tonnage of the vessel;
d) registration number of the vessel in the Register;
e) name of the owner;
f) name of the shipowner, if different from the owner;
g) IMO number.
If one of the above elements is modified, a new certificate of registration must be issued.

Monitoring compliance with the requirements for admission to navigation

The Authority monitors the continuation of the aforementioned requirements and, if it finds that even just one of them has ceased to be met, it sets a deadline for the owner to restore said requirements. 
If the deadline has elapsed without success, the Authority suspends admission to navigation and orders the withdrawal of the certificate of registration, without prejudice to the powers of suspension and revocation.

Withdrawal of the certificate of registration

The Authority orders the withdrawal of the certificate of registration in all cases of cancellation of the vessel from the Register.

Registration of vessels

Vessels may be registered in the Register if they are owned by:

a) of the Most Excellent Chamber;
b) of natural persons resident in the Republic of San Marino;
c) of legal persons resident in the Republic of San Marino;
d) of non-resident natural or legal persons who have appointed a representative in the Republic of San Marino.
In the case of joint ownership, the above requirements must be met in relation to the majority of the shares.

Title for the registration of ships

The owner who intends to register a ship in the Register must submit an application to the Authority enclosing:

a) original or certified copy of the title of ownership represented by:

1) public deed;
2) authenticated private deed;
3) judgment;
4) declaration of succession;

b) application for approval of the name;
c) documentation certifying possession of the requirements;
d) tonnage certificate;
e) certificate of cancellation from the register of the vessel’s previous registration or documentation certifying the request for cancellation.

Bareboat leasing

Vessels that are under suspension of registration in a foreign register and that are leased or leased to a person who possesses the requirements may be temporarily registered in the Register.
In this case, instead of the title deed, the original or certified copy of the lease or lease agreement must be attached to the application for registration in the Register.
The applicant for registration must also attach to the application, in original or certified copy, declarations of consent to temporary registration in the Register by the register of origin, the owner and any creditor mortgage.
The temporary registration referred to in this article has a duration not exceeding that of the leasing or financial leasing contract, possibly extended, and in any case not exceeding five years.

Suspension of registration

The owner of a vessel registered in the Register may, in the event that the vessel is leased or leased financially, request temporary suspension of registration to allow temporary registration in another register by the lessee or user.

The application for suspension must be accompanied, in original or certified copy:

a) the leasing or financial leasing contract;
b) the declaration of consent to the suspension of registration by the mortgage creditor, if any.
The suspension of registration referred to in paragraph 1 has a duration equal to that of the leasing or financial leasing contract financial, possibly extended, but in any case not exceeding five years.

Request for cancellation of ships

The Authority proceeds with the cancellation of the ship from the Register upon request of the owner or, where applicable, of the lessee or user under a lease or financial lease agreement.
The Authority issues the cancellation authorization provided that there are no transcriptions of seizures or foreclosures, registration of mortgages or other rights of third parties. 
Following the acceptance of the application, the Authority orders the cancellation of the ship from the Register and the withdrawal of the registration certificate and the on-board documents.

Additional cases of cancellation of ships

The Authority also orders the cancellation of the ship from the Register and the withdrawal of the registration certificate and the on-board documents:

a) when the owner no longer meets the requirements and they are not restored within the peremptory term of sixty days from the formal notice sent to the owner by the Authority;
b) in the event of a judicial sale of the vessel in San Marino or abroad;
c) in the event of demolition of the vessel;
d) in the event of loss of the vessel.

In the case referred to in letter b), the successful tenderer must file a cancellation application, attaching the original or certified copy of the award decision.
In the case referred to in letter c), the owner must file a cancellation application, attaching a demolition certificate issued by a body authorised by the Authority.
In relation to the provisions of letter d), the vessel is presumed to have perished when there is no news of it for a period of more than ninety days.

Taxes and duties

Income generated by companies Sammarinese who carry out maritime transport of people or goods, or other maritime commercial activities through the use of ships flying the Sammarinese flag, are subjectopposed to specific taxation for the implementation and regulation of which reference is made to a specific delegated decree.

Single-phase tax

Registration in the Register constitutes a prerequisite for the payment of the single-phase tax, except in the case of registration by the subjects indicated also in reference to bareboat leasing, or in the case of trusts registered in the Trust Register of the Republic of San Marino whose settlor or beneficiary are non-resident subjects. 
In cases where the prerequisite for the payment of the single-phase tax occurs, the reduced rate of 6% applies, reduced according to the following parameters:

a) for pleasure boats and vessels:

1) 50% for sailing vessels with a length exceeding 20.01 metres and motor vessels with a length exceeding 16.01 metres;
2) 35% for sailing vessels between 10.01 and 20.00 metres in length and motor vessels between 12.01 and 16.00 metres;
3) 20% for sailing vessels up to 10.00 metres in length and motor vessels up to 12.00 metres in length.

b) for pleasure vessels:

1) 60% for sailing vessels less than 35.01 metres in length and motor vessels less than 32.01 metres in length;
2) 70% for sailing vessels more than 35.01 metres in length and motor vessels more than 32.01 metres in length.
Vessels used for navigation other than pleasure vessels, imported by San Marino companies and used for the maritime transport of people, goods or other maritime commercial activities, benefit from of exemption from payment of the single-phase tax.

Extraordinary tax on luxury goods

The extraordinary tax on luxury goods established by Article 54 of Law No. 194 of 22 December 2010 does not apply to Commercial Units.

Insurance tax

Insurance relating to each vessel registered in the San Marino Register is exempt from the insurance tax established by Article 33 of Law No. 21 December 2012.

Implementation of international conventions

a) International Convention for the Unification of Certain Rules Relating to Collisions between Vessels, concluded in Brussels on 23 September 1910;
b) International Convention on the Unification of Certain Rules Relating to Bills of Lading, done at Brussels on 25 August 1924, and the Protocols of 1968 and 1979 thereto;
c) International Convention for the Unification of Certain Rules Relating to Naval Liens and Mortgages, done at Brussels on 10 April 1926;
d) International Convention for the Unification of Certain Rules of Arrest of Ships at Sea, done at Brussels on 10 May 1952;
e) International Convention on Load Lines, 1966, done at London on 5 April 1966;
f) International Convention on Tonnage Measurement of Ships, 1969, done at London on 23 June 1969;
g) International Convention concerning Intervention on the High Seas in Cases of Oil Pollution Incidents, done at Brussels on 29 November 1969, and the Protocol of 1973 thereto on …10 April 1926;
e) International Convention on Load Lines, 1966, done at London on 5 April 1966;
f) International Convention on Tonnage Measurement of Ships, 1969, done at London on 23 June 1969;
g) International Convention concerning Intervention on the High Seas in Cases of Oil Pollution Incidents, done at Brussels on 29 November 1969, and the Protocol of 1973 thereto on Intervention on the High Seas in Cases of Oil Pollution Incidents, done at Brussels on sea ​​in the event of pollution by substances other than oil, concluded at London on 2 November 1973;
h) International Convention on Civil Liability for Oil Pollution Damage (CLC), concluded at Brussels on 29 November 1969 together with the Protocols of 19 November 1976 and 27 November 1992;
i) International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FUND), concluded at London on 27 November 1992 together with the Protocol of 16 May 2003;
l) Convention on the International Regulations for Preventing Collisions at Sea, 1972, concluded at London on 20 October 1972 (COLREG);
m) International Convention for the Prevention of Pollution from Ships (MARPOL), concluded at London on 2 November 1973 and the Protocol of 1978 together with the Protocol of 1979 to the Annexes thereto;
n) Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 1974, concluded at Athens on 13 December 1974 and the Protocols thereto of 1978 and 1990;
o) International Convention for the Safety of Life at Sea (SOLAS), concluded at London on 1 November 1974 and the Protocols thereto of 1978 and 1988;
p) London Convention on Limitation of Liability for Maritime Claims (LLMC), concluded at London on 19 November 1976 and the Protocol thereto of 1976;
q) International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), concluded at London on 17 July 1978 as amended in 1995 and 2010;
r) International Convention on Assistance with Maritime Claims, 1989concluded at London on 28 April 1989;
s) International Convention on Civil Liability for Bunker Oil Pollution Damage (BUNKER OIL) concluded at London on 23 March 2001;
t) Maritime Labour Convention concluded at Geneva on 23 February 2006.