Flagstate and BIMCO concerns regarding EUC's 26.01.2015

Recently BIMCO has informed all shipowners about their concerns that some PMSCs may be operating contrary to the provisions of GUARDCON. We would like to take this opportunity to remind all our clients that ESC Global Security does not hire nor rent out weapons. This has also been checked and verified by several flagstate authorities who have licensed ESC Global Security and also UKAS accredited ISO 28000 with ISO PAS 28007 auditors. The EUC's for the embarked weapons are always available and are without any exceptions licensed to ESC Global Security.  
BIMCO has received reports that a small minority of PMSCs may be operating contrary to the provisions of GUARDCON. 
These companies are leasing/renting out their weapons to other PMSCs. Those renting/leasing from third parties without having in place the required licences and permits issued by state authorities to control the handling and movement of weapons are likely to be in breach of the original “end user” licences and therefore operating illegally. PMSCs who engage in this practice are potentially in breach of their obligations under Clause 10 (Permits and Licences) of GUARDCON. Those PMSCs renting/leasing out the weapons are potentially in breach of the UK Proceeds of Crime Act and other similar international laws. The motivation of these PMSCs is to undercut their competition in an increasingly competitive market by slashing weapons-related logistics costs. BIMCO urges owners and operators, particularly those with long-term contracts with PMSCs, to exercise due diligence in checking that their chosen security company is operating in accordance with valid permits and licences as specified at Clause 10 of GUARDCON.

SOURCE: BIMCO and Liberia flagstate

In order to avoid risk of detention and possible claims, the shipping company is urged to be diligent in checking the PMSC weapons' licenses and permits when employing PMSCs, as follows:
  1. In para "final-end user":  The name of the maritime security-address should be mentioned.
  2. If legally hired (from Djiboutian Navy), in para "final-end user" should read: Security companies legally licensed by the Republic of Djibouti providing maritime security companies. Additional check of this license is required.

For further information, please don't hesitate to contact us!

Madis Madalik
COO
Ph +372 52 11 225
Skype: madis.madalik