Club correspondents have notified us of new changes in Argentina’s main regulation concerning navigation REGINAVE (Maritime, River and Lake Navigation Regime), which provide the ability to the Prefectura Naval Argentina (PNA) Coast Guards (CG) to impose fines on foreign seafarers and shipowners for breach of maritime and environmental regulations/laws. The level of fines has also increased significantly.

REGINAVE background

The REGINAVE was originally enacted by Decree 4516 of 16th May 1973 and the CG had limited faculties to sanction foreign seafarers or foreign shipowner for infringements under the REGINAVE. Normally, the CGs was not able to impose fines to foreign crewmembers but only to notify their findings through diplomatic channels to the concerned flag’s administration and/or to the country which issued the license of the involved seafarer.

On 13th November 2019, Decree 770/2019 was enacted repealing the original REGINAVE and enacting a new REGINAVE. The Decree was published on 14th November 2019 and would enter into force 8 days after its publication date. The new REGINAVE has granted the CGs with the ability to impose penalties on foreign seafarers and shipowners, posing a more rigorous requirement on them than before.

Administrative penalty in the new regime

1.      CGs are entitled to impose fines on foreign individuals or companies which are found to be in breach of the REGINAVE or other maritime and environmental laws.

2.      CGs are entitled to detain any foreign vessel in which an infringement was committed, until any fine is paid or guaranteed by a National Individual or Entity which provides sufficient financial guarantee at the discretion of the CGs.

3.      At this stage in accordance with the new regulations the guarantee would need to be personal bond, asset-backed security (e.g. cash) or sureties which prove to be sufficient financial security at CGs discretion. It is uncertain at present time whether LOU will be accepted by the Maritime Authority at the end of the day.

Increase of fine amounts

In the REGINAVE, both in the original as the new one, the fines are expressed in Unidades de Multa (UM – units of fine). Before, each UM was worth AR$ 1.5 and the maximum fine amounted to 60,000 UM equivalent to AR$ 90,000 (today about US$ 1,500).

Now, each UM is worth AR$ 10 and the maximum fine seems to amount to 3.000.000 UM equivalent to AR$ 30,000,000 (today about US$ 500,000). Moreover, the UM will be adjusted annually according to the inflation rates UNDER INDEC (NATIONAL INSITUTE OF STATISTICS AND CENSUS).

Direct/indirect liability of the shipowners

Within the old regime, the infringements endorsed to the seafarers were pursued personally against the seafarers; and those endorsed to the shipowners were pursued against the shipowners. Therefore, if the shipowners were not in infringement personally, then they had no administrative responsibility for their seafarers.

Now, the Companies could be held liable for the infringements committed by their agents and by those who act on their behalf. Therefore, it is possible for the shipowners to be held liable together with the seafarer who committed an infringement (or any other servant acting on Owners’ behalf).

Advice to Members

As the third largest economy in Latin America with abundant natural resources, Argentina is also a large exporter of minerals, agricultural and fishery products, and most of its exports concentrate in fluvial ports stretching along domestic river shores. Given the significant changes in the regime, members that plan on trading in Argentina are advised on the following:

1.      Discharge sewage oil, garbage and washwater in strict compliance with international conventions and Argentinean laws, and be particularly careful with the use of scrubbers after the introduction of IMO 2020 sulphur cap.

2.      The master should make reasonable watch arrangement to prevent fatigue among seafarers and pilots for the time-consuming pilotage in Argentina where fluvial ports are located far from the sea.

3.      The master should lead the bridge team in a responsible way and closely monitor the actions of the pilot in the narrow river course with heavy traffic.

4.      In circumstances where vessels drop anchor halfway waiting for berth, the master should make appropriate arrangement for anchor watch to prevent dragging anchor, which could further lead to collisions and groundings.

5.      Local pilots would often hire only one tugboat in the berthing unberthing operation with regard to the current, but considering the penalties that may be imposed, it is advisable for owners to negotiate with the charterer for the adequate number of tugboats to ensure a safe procedure.

6.      Conduct a thorough safety check for the PSC inspection in Argentina for any safety or environmental deficiencies could result in vessel detentions and penalties on seafarers and the company.

7.      The company should, in accordance with SMS, perform its supervising responsibilities by providing necessary support to the master in terms of ensuring navigational safety and environment protection prior to arrival at the port as stipulated by the ISM Code.

For more information, please contact your Manager at the Club.