Denmark to abolish ship registration fees

Sep 08 2017

The Danish government has proposed to abolish the registration fee on merchant ships.

Danish Shipping pointed out in a statement that a serious obstacle to the growth of vessels flying the Danish flag will therefore be removed.

The government's new measures for business and industry to prolong the growth of the Danish economy also contained maritime proposals, for example, to the abolition of the special fee on secondhand ships, which are registered in the Danish International Ship Register (DIS).

This will remove a cost, which today makes it less attractive for shipping companies to register newly purchased secondhand ships under Danish flag, Danish Shipping claimed.

Anne Steffensen, Danish Shipping CEO, welcomed the government's removal of the costly fee. "We know from talks with Danish and foreign shipping companies that this registration fee is an obstacle when they wish to register under Danish flag. Therefore, I am pleased that the fee will be removed, as this will make Denmark a more attractive market. It is a good day for the Danish maritime cluster and it sends a strong signal that Denmark will be a global maritime power house," she said.

When registering a ship in Denmark, a one-off fee of one per 1,000 of the value of a ship is charged, as well as a fee for registering a mortgage, which also represents one per 1,000 of the value of the deposit. This applies when a secondhand ship is registered in DIS, whereas in many other countries, a far lower charge is paid.

In his presentation, Brian Mikkelsen, Danish Minister for Industry, Business and Financial Affairs, emphasised that the proposal is an investment in the future. "The Danish maritime cluster is growing, so it is also an investment in the future, as we can help attract activities to the country," said Mikkelsen.

"Today, it can be three to four times more expensive to register a ship in Denmark than in, eg Singapore. The better the conditions offered by Denmark, the higher the probability that more ships will fly the Danish flag. I see it as an important matter for the entire shipping industry," Jan Rindbo, NORDEN CEO said. 

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