E-certs

Most certificates for Hong Kong-registered ships may now be issued, extended, suspended or cancelled by the Hong Kong Marine Department electronically.

Each e-cert is in PDF format protected from unauthorized modification and contains the following information for verification of its authenticity:

• a tracking number;
• a QR code;
• the Hong Kong Marine Department’s digital signature; and
• verification instructions.

The authenticity of such an e-cert can be verified by checking its tracking number on the Hong Kong Marine Department’s official webpage or by scanning its QR code.

The Hong Kong Marine Department has indicated that e-certs will become the “norm” and that paper certificates will only be issued upon special request.

With the E-Ordinance giving full legal effect to e-certs, the overseas liaison offices of the Hong Kong Marine Department will no longer issue or deliver paper certificates.

Display onboard?

From 1 August 2023, onboard any Hong Kong-registered ships, all e-certs and e-logbooks should be made readily accessible for viewing from an electronic device or, if the device is not functioning properly, by producing a print version, all in accordance with the relevant IMO (International Maritime Organization) and ISO (International Organization for Standardization) guidelines.

There are exceptions – certain certificates (e.g., those under the Maritime Labour Convention) must be displayed onboard in paper/printout form.

Evidence in litigation

The E‑Ordinance includes amendments to section 87 of the Merchant Shipping (Registration) Ordinance (Cap. 415), inter alia, to include printouts and electronic copies of a certificate of registry, a certificate of provisional registry, a certificate of deletion and an International Tonnage Certificate (1969), or copies or extracts of these certificates certified in electronic form, as admissible in evidence in any legal proceedings unless proved not to be the documents they purport to be or not to be signed or certified by the person by whom they purport to be signed or certified. If admitted, such copies shall be sufficient, though not conclusive, evidence of any matter stated in the register or document.

More generally speaking, these e-certs and e-logbooks will most likely be admissible evidence in litigation and arbitration just like other electronic documents, such as emails and text messages. However, given the relative ease of modifying electronic documents, parties to a dispute should pay attention to whether the copies of e-certs and e-logbooks adduced as evidence show any signs of unauthorised manipulation. It would be advisable for parties to request production of the original electronic files containing all the metadata to verify the authenticity of the documents.

Conclusion

With full legal effect provided by the E-Ordinance, the use of e-certs and e-logbooks will become the new norm and provide significant benefits to shipowners, operators, financing banks and the shipping industry as a whole. This new norm will certainly save administrative time and costs – the practice of having a junior member of a ship management company take the first flight out of Hong Kong just to deliver originals to the ship, wherever it is located, will become history – all the ship manager will need is a stable internet connection, an appropriate electronic device and a functioning printer onboard the ship, while the verification process will enhance the security and integrity of certificates. This will also facilitate ship sale and purchase, as well as financing transactions, during which all parties can safely rely on the e-certs.

Client Alert 2023-177