TTM10415 - Ship leasing: Quantitative restrictions on allowances
Quantitative restrictions to allowances are subject to two exceptions.
Firstly they do not apply to ordinary charters where the lessor remains responsible for operating the ship, appointing the master and crew and defraying all expenses.
A second exception is where the ship is bareboat chartered out in the ordinary course of the trade of operating ships where the charter cannot exceed seven years. Where the charter is to a group of companies, the lease must not exceed seven years in any period of ten years. There must be no arrangement under which the lessee or a person connected with them may acquire the ship from the lessor.
The second exception is further subject to temporary rules that apply to leases entered into between 18 December 2002 and 16 April 2003. For such a lease in this period a second exception applies where the ship is chartered out to another person because of short term over capacity, the lease must not be for more than three years, or for more than three years in any five year period and the charterer or any person connected with him must not have an option to purchase the ship.
|FA2000/SCH22/PARA89A (quantitative restrictions not to apply to ordinary charters)||TTM17491|