Interpretation of the term "commercial purposes"

The Act relating to ship safety and security (Ship Safety and Security Act) applies generally to Norwegian ships, cf. section 2 first paragraph first sentence. The term "ship" refers to the traditional ship term in maritime law and also applies to smaller vessels. Proposition No. 87 to the Odelsting, section 19.1, states: "Although the Act is primarily designed with regard to ships engaged in commercial purposes, the applicability of the Act is not contingent upon the ship being used for commercial purposes."

The Act does not apply to ships of less 24 metres in overall length used for non-commercial purposes, see section 2 first paragraph second sentence. The term "commercial purposes" as used in the Ship Safety and Security Act is not tied to its interpretation in other legislation. This is likely due to the Act’s objective of safeguarding life, health, property and the environment, and the legislator’s intention that it should have a broad scope of application.

NOU 2005:14, section 7.1.3.2, states that the presence of remuneration is a "central factor" in determining whether an activity falls within the meaning of commercial purposes. Other factors may also be relevant, such as the target audience, the number of persons involved, and whether the activity is publicly advertised.

The concept of commercial purposes under the Ship Safety and Security Act is broad and also encompasses situations where ship operations are financed through government subsidies, membership fees or other means, rather than direct monetary payment (NOU 2005:14 section 7.1.3.2). There is no requirement for the activity to generate a profit. Public-benefit or charitable organisations, as well as training institutions with good intentions, are therefore not exempt from the scope of the Act.