Attachment 2—Guidance on calculation of trading times

A ship IS engaged on international trading when:

1. It takes on board passengers or cargo at one or more ports in a State or Territory of Australia and carries those passengers or cargo for disembarkation at one or more ports in one or more foreign countries.
2. It takes on board passengers or cargo at one or more ports in one or more foreign countries for disembarkation at one or more ports in a State or Territory of Australia.
3. It takes on board passengers or cargo at one or more ports in one or more foreign countries for disembarkation at one or more ports in one or more foreign countries.
4. It is on a non-cargo/passenger or ballast voyage where the purpose is for conducting any activity in connection with those detailed in items 1, 2 and 3 above. This will only apply to a voyage that precedes loading an international trading cargo.

A ship is NOT engaged on international trading when:

1. Any coastal trading cargo is on board.
2. Any intra-state trading cargo is on board.
3. The vessel is not engaged in any trading by definition.

A ship is NOT engaged in any trading when:

1. It does not meet any of the definitions of international trading, coastal trading or intra-state trading; such as:
   • it is in lay-up or dry dock, or any activity associated with the maintenance of the vessel, even if in a foreign country, and any voyage involved in proceeding to that foreign location.
   • it repositions for the purpose of coastal or intra-state trading operations.

When is a ship considered to be “predominantly” engaged in international trading”?

1. The Shipping Registration Act 1981 prescribes that to be registered on the International Register the percentage of time that the ship is used for international trading must exceed the time it is used for coastal or intrastate trading.
2. The measure is therefore based on a percentile of the type of trading that a ship participates in during a calendar year and the requirement is that more than 50% of trading time must be on international trading.
3. It should be noted that this is not the same as 50% of the year. This is because within this context, trading is either international, coastal or intra-state and by these definitions¹⁴, it can be seen that there may be times a vessel is operating but not meeting one of these trading definitions (see also paragraphs 8-10).
4. An example of this requirement is that where a ship is used for ‘trading’ for 200 days in a calendar year, at least 101 days must be on activities classified as being for international trading.

Administrative processes

1. For the purpose of calculating trading times, international trade commences on the day the first passenger or cargo is loaded on board, and ends on the day the last passenger or cargo is disembarked or the day that any coastal or intra-state cargo is loaded. Both days are included in the duration.
2. For the purposes of paragraph 4, this aspect of international trade commences on the day the voyage begins and ends on the day the international trading cargo is loaded.
3. Time will be calculated in full day amounts.
4. Comparison of international trading to coastal and intra-state trading will be based on a calendar year, or for the purpose of applying for registration, at least 3 months forward planning.
5. Amount of time taken by paragraphs 8-10 is not considered in the calculations.

Some examples

1. Vessel loads a full cargo in Singapore for full discharge in Brisbane – international trading from time cargo loading commences until it is fully discharged.
2. Vessel loads a full cargo in Singapore for part discharge in Brisbane and remainder discharged in Sydney – international trading from time cargo loading commences until it is fully discharged at Sydney.
3. Vessel loads a part cargo in Singapore for full discharge in Brisbane. On the way it stops at Darwin where it loads more part cargo for discharge in Brisbane - international trading from time cargo loading commences in Singapore until when cargo loading in Darwin commences. Darwin to Brisbane is coastal cargo and requires a coastal trading license.
4. After discharge of a cargo, vessel departs Brisbane in ballast heading to Auckland to load a full cargo for Melbourne – international trading from time cargo discharge in Brisbane is complete until discharge is complete in Melbourne – the ballast voyage is in connection with the international cargo from Auckland to Melbourne.
5. Vessel loads a full cargo in Fremantle for full discharge in Singapore. After discharge vessel sails in ballast to Darwin for a cargo to Townsville - international trading from time cargo loading commences in Fremantle until when cargo discharge is completed in Singapore. Cargo from Darwin to Townsville is a coastal cargo. Voyage between Singapore and Darwin is NOT in connection with the international trading so is NOT international trading but similarly it is NOT coastal cargo either. This period is not considered within the calculation of international trading compared to coastal/intra-state trading.
6. Vessel fully discharges an international cargo in Brisbane and then sails to Sydney for a cargo to Melbourne – the voyage to Brisbane is international trading until cargo discharge is complete. Sydney to Melbourne is coastal trading and requires a coastal trading license.The voyage Brisbane to Sydney is neither coastal trading (as there is no cargo on board) or international trading (as it is not connected with the international trading voyage) and so is not considered trading in the calculation of ”predominantly engaged”.

Flow chart: determining if ship in international trading

Footnotes:

^{14. In considering these definitions, readers are reminded to NOT consider these terms within the context of Navigation Act 2012 definitions, but to only consider them as indicated in the preamble to this guidance document.}

^{15. As defined in section 3 of SRA.}

^{16. As defined in section 3 of SRA and Coastal Trading (Revitalising Australian Shipping) Act 2012.}

^{17. As defined in section 3 and 61AB of SRA}