Klasseavtalen

1.1 The purpose of this Agreement is to delegate authority to perform survey and certification services to the extent given in the Annexes to this Agreement. The purpose of this Agreement is also to define the scope, terms, conditions, requirements and co-operation between RO and the NMD, relating to all Norwegian registered ships classified by RO and the Companies responsible for operating Norwegian registered ships.

2.1 RO shall have established a quality management system complying with the provisions of Appendix 1 of the Annex to Resolution A.739 (18) and the Annex to the Class Directive.

2.2 Survey and certification services comprise the assessment of Norwegian registered ships classified by RO in order to determine the compliance of such vessels with the applicable requirements of the international conventions, codes, national rules and regulations, circulars and instructions, hereinafter referred to as "applicable instruments", and the issuance of relevant certificates as set out in the Annexes hereto.

2.3 RO, its employees and others acting on behalf of the RO are obliged to follow the instructions issued by the NMD for execution of authority under this Agreement.

2.4 When RO is notified by Port State Authorities/owners/management company/agent/master of an accident or a Port State intervention on a Norwegian registered ship for which RO has issued certificates, the matter shall be dealt with without delay.

2.5 Where the general condition of a ship, its equipment or manning in important respects is found not to be in accordance with the specifications of its certificates, or to be such that the ship is not fit for navigation without danger to the ship or those onboard or the marine environment, the RO surveyor concerned shall immediately make sure that the necessary measures are taken to rectify the defects. If such rectifying measures are not taken, the certificate involved shall be withdrawn.

2.6 In the event that deficiencies or discrepancies prove to be beyond the scope of the general authorizations, cf. Annexes of this Agreement, further action by RO on behalf of NMD shall be defined in a special authorisation, cf. Annex V

2.7 Services rendered and certificates issued by RO shall be accepted as services rendered or certificates issued by the NMD provided that RO maintains compliance with the provisions of Appendix 1 of the Annex to Resolution A.739 (18) and the Class Directive.

2.8 After receiving special authorisation from the NMD, RO shall undertake to carry out surveys etc. on Norwegian registered ships additional to the tasks that follow from general authorisation in the Annexes I to III in this Agreement. For details see Annex V.

2.9 RO shall endeavour to avoid undertaking activities, which may result in a conflict of interest.

3.1 While interpretations of the applicable instruments, as well as the determination of equivalents or the acceptance of substitutes to the requirements of the applicable instruments are the prerogative of the NMD, RO shall co-operate in their establishment as necessary.

3.2 RO has the right to accept other technical solutions than those specified in the applicable instruments in question, provided the solutions are considered to provide an equivalent standard of safety. Where conditions of major importance to safety are involved, RO shall inform the NMD, and if possible consult the NMD in advance.

3.3 Request for exemptions from the requirements of the applicable instruments shall be submitted to the NMD for consideration and final decision via the head office or dedicated regional office of the RO. Exemptions may only be granted by the NMD, but the RO may be authorised to issue the Exemption Certificate.

3.4 The unified interpretations and unified requirements of the International Association of Classification Societies (IACS) shall be accepted by the NMD, unless they are in conflict with the NMD interpretations.

3.5 In instances where, temporarily, the requirements of an applicable instrument cannot be met under particular circumstances, the RO shall specify such measures or supplementary equipment as may be available to permit the vessel to proceed to a suitable port where permanent repairs or rectification can be effected or replacement equipment fitted.

4.1 RO shall report to the NMD information as delineated in the Annexes to this Agreement, at such frequency as agreed between RO and the NMD.

4.2 On request, the NMD shall be granted access to all plans and documents including reports on surveys on the basis of which certificates are issued or endorsed by RO, as delineated in the Annexes to this Agreement.

4.3 The NMD shall provide RO with all necessary documentation for the purpose of RO's provision of survey and certification services.

4.4 RO and the NMD undertake to hold regular liaison meetings, including meetings on a technical level when necessary, in order to discuss problems of mutual interest, and to co-operate in the development of new rules and regulations, and to exchange information on new designs and new equipment.

4.5 Regulations, rules, instructions, report forms and correspondence shall be written in the English language.

4.6 RO shall contact the NMD as early as practicable when considering development of new mandatory rules or amendments to existing mandatory rules affecting surveys and certification in accordance with the annexes to this Agreement. RO shall consider any recommendations for addition or amendments to its rules made by the NMD.

4.7 The NMD shall forward, free of charge, a sufficient number of the relevant regulations and instructions to the RO. Similarly, RO shall forward, free of charge, a sufficient number of its regulations etc., as per Annex IV to this Agreement to the NMD.

4.8 Class assignment by the RO shall, to the extent this follows from the Seaworthiness Act and appurtenant regulations, normally be the basis for issuance of statutory certificates. All matters covered by the class assignment shall be subject to thorough control by RO, ensuring that all necessary safety requirements are complied with.

4.9 Compliance with the rules for assignment of class shall be documented in such a way that all relevant information can be presented to the NMD upon request. The NMD shall also be entitled to any other information possessed by RO in connection with the classification of the ship, being of relevance to the public safety control.

4.10 Employees of the NMD shall have access to all internal training programmes and courses related to classification and statutory services arranged by the RO, at no cost to the NMD except for travel and accommodation costs.

5.1 The NMD is entitled to satisfy itself that RO effectively carries out its functions in accordance with this Agreement and that RO's quality management system continues to comply with the requirements of Appendix 1 of the Annex to Resolution A.739 (18) and fulfils the criteria set out in the Annex to the Class Directive.

5.2 The NMD may choose to co-operate with other Administrations or to recognise audits performed on RO by an independent audit group representing the interests of the NMD.

5.3 In order to assist the NMD in its supervision, RO undertakes to provide the NMD with information as per Annex IV to this agreement.

5.4 The NMD is entitled to report to the Commission of the European Union and the Member States of the European Economic Area the final outcome of the supervisory activities undertaken by the NMD, and to provide them with the performance record of RO and any other information considered necessary. The same information may be provided to all RO's recognised by the NMD. However, no information bound by confidentiality requirements of the Public Administration Act as per section 6 of this Agreement shall be forwarded.

6.1 Change of recognised organization
A transfer of class to or from RO shall be in accordance with the procedures of IACS Transfer of Class Agreement.

6.2 Remuneration
For work carried out by RO in accordance with this Agreement, the Society itself may charge remuneration from the owner or others in accordance with its own fees except for work in accordance with Annex V of this Agreement.
RO is not entitled to remuneration for work carried out on behalf of NMD, in circumstances where the same work is carried out for maintenance of classification and RO receives fees directly from their client.

6.3. Rules for administrative proceedings, pledge of secrecy etc.
The Act of 10 February 1967 relating to the Procedure in Cases concerning the Public Administration, the Public Administration Act, is applicable to the work carried out by RO on behalf of the NMD. Appeals of individual decisions adopted pursuant to a general or special authorisation under the scope of this Agreement shall be lodged with the Ministry of Trade and Industry. Appeals shall be submitted to the Ministry through the NMD, which may reverse the appealed decision or send the case to the Ministry with the NMD's comments. For work carried out on behalf of the NMD, employees of RO are bound by the same pledge of secrecy as that of the NMD officials pursuant to the Public Administration Act and other relevant acts.

6.4. Surveyors
Normally, surveys shall be carried out by RO's own surveyors working exclusively for RO. RO may use exclusive surveyors of another organization with which RO has a bilateral agreement provided that the other organization is recognised by the NMD. However, RO may use service suppliers provided such suppliers and all services and functions performed by them relevant to this Agreement, are subject to the quality management system of the RO. These provisions apply to all suppliers of services being relevant to survey and certification in accordance with this Agreement.

6.5 Amendments
Amendments to this Agreement shall become effective only after consultation and written agreement between the Ministry of Trade and Industry and RO. Amendments of the Annexes shall become effective after consultation and written agreement between the NMD and RO.

6.6 Governing law and settlement of disputes
All disputes under this Agreement shall be decided in accordance with Norwegian law.

Should a dispute arise in connection with this Agreement, the dispute shall be settled finally and binding for both parties by arbitration in Oslo and in accordance with Norwegian rules of legal procedure, cf. the Civil Disputes Act, Chapter 32. Each party shall appoint one arbitrator, and those arbitrators shall jointly appoint the third arbitrator who shall be a member of the legal profession, and be appointed chairman of the court. If the parties fail to agree on the composition of the arbitration court within two weeks after a written request for arbitration has been submitted by one of the parties, Oslo District Court shall decide the composition at the request of one of the parties. The arbitration shall be conducted in the English language.

6.7 Financial liability.
If liability, arising out of any incident is finally and definitively imposed by a court of law on the NMD, together with a requirement to compensate the injured parties for loss or damage to property or personal injury or death, which is proved in that court of law to have been caused by a wilful act or omission or gross negligence of the RO, its bodies, employees, agents or others who act on behalf of the RO, the NMD shall be entitled to financial compensation from the RO to the extent that the said loss, damage, injury or death is, as decided by that court, caused by the RO.

If liability, arising out of any incident is finally and definitively imposed by a court of law on the NMD, together with a requirement to compensate the injured parties for personal injury or death, which is proved in that court of law to have been caused by any negligent act or reckless act or omission of the RO, its employees, agents or others who act on behalf of the RO, the NMD shall be entitled to financial compensation from the RO to the extent that the said personal injury or death is, as decided by that court, caused by the RO, up to but not exceeding an amount of 5.000.000 EURO.

If liability, arising out of any incident is finally and definitively imposed by a court of law on the NMD, together with a requirement to compensate the injured parties for loss or damage to property, which is proved in that court of law to have been caused by any negligent or reckless act or omission of the RO, its employees, agents or others who act on behalf of the RO, the NMD shall be entitled to financial compensation from the RO, to the extent that the said loss or damage is, as decided by that court, caused by the RO, up to but not exceeding an amount of 2.500.000 EURO.

Neither party shall be liable to the other for any special, indirect or consequential losses or damages resulting from or arising out of services performed under this Agreement, including without limitation loss of profit, loss of production, loss of contract, loss of use, business, interruption or any other special, indirect or consequential losses suffered or incurred by any party howsoever caused.

In the performance of survey and certification services hereunder, RO, its officers, employees and other acting on its behalf are entitled to all the protection of law and the same defences and/or counterclaims as would be available to the NMD and its own staff surveyors or employees if the latter had conducted the survey and certification services in question.

If the NMD is summoned or is expected to be summoned to answer for such liability as mentioned above in this Section, RO shall be informed without undue delay. The NMD shall, for information purposes, send copies of all claims, documents and other relevant material to RO. RO shall be entitled to provide support and/or participate in the defence of such claim, if RO deems it necessary or appropriate. If the NMD fails to plead all appropriate available defensive measures then RO shall not be required to indemnify the NMD in accordance with above.

While acting for the NMD under this Agreement, the RO shall be free to create contracts directly with its clients and such contracts may contain the RO's normal contractual conditions for limiting its legal liability. The NMD further permits the RO to include its standard terms and conditions on all certificates, reports and other documents issued by the RO pursuant to this Agreement.

6.8 Termination
If this Agreement is breached by one of the parties, the other party shall notify the violating party of its breach in writing. The latter shall within 30 days inform the former about the steps it intends to take, and remedy the breach without undue delay, but within 90 days at the latest. Failing this, the notifying party has the right to terminate the Agreement immediately. If the Agreement is breached by the RO, the RO shall provide all relevant information on the relevant vessels to the NMD.

Either party may terminate this Agreement by giving the other party 12 months written notice.

6.9 Issue
This Agreement commences on 1 June 2002.

As from the same date all previous Agreements between the Ministry of Trade and Industry, the Ministry of Foreign Affairs and/or the NMD and RO concerning control and surveys etc. of ships registered in a Norwegian Ship Register is repealed.

This Agreement is issued in two identical, signed copies, of which one is to be kept by the Ministry of Trade and Industry, and the other by the RO. Each of these copies are to be considered as an original for any purpose.