S.L. 234.43 Art. 11Benefits not to exceed set parameters.

For the avoidance of doubt it is hereby clarified that no person shall receive any benefit from these regulations that exceeds those allowed in terms of the Community Guidelines on State Aid to maritime transport, including but not limited to Section 11 of the said Guidelines.

SCHEDULE (Regulation 7)

Ancillary Activities

(1) Ancillary activities for the purposes of regulation 7(1), shall be determined in accordance with the following paragraphs.

(2) Ancillary activities shall mean activities related to a tonnage tax ship as provided for in paragraphs (3) to (4) of this Schedule, other than commercial activities which form part of the operation of a port carried on for profit, that have a substantial connection with the shipping organisation’s shipping activities or, where the licensed shipping organisation is a member of a group, the shipping activities of another qualifying licensed shipping organisation in that group.

(3) The following ancillary activities benefit, provided that the gross revenue from those activities is less than fifty per cent (50%) compared to the gross revenue from the licensed shipping organisation’s shipping activities, which threshold shall be applied on a ship-by-ship basis:

(a) the carriage of passengers or cargo otherwise than on board a tonnage tax ship operated by the licensed shipping organisation, where -

(i) there is a single contract with the customer for a journey which includes a voyage on the tonnage tax ship, and

(ii) the transport for the remainder of the journey is purchased or obtained by the licensed shipping organisation by provision which would have been made as between independent enterprises;

(b) sales and facilities which are normally provided to customers by seagoing passenger ships, including -

(i) the sale of alcoholic beverages, perfume and tobacco, but not luxury goods,

(ii) the exchange of amounts of different currencies for personal expenditure;

(iii) health and beauty and spa and wellness services

(c) administrative and insurance services which are directly related to the carriage of passengers or cargo, including under a contract described in paragraph (a)(i);

(d) the provision of holidays, sold to the customer under a single contract, where -

(i) part of the holiday is a voyage on a tonnage tax ship operated by the licensed shipping organisation, and the remaining part is land-based (‘the land-based part’),

(ii) the land-based part is purchased or obtained by the licensed shipping organisation by arm’s length provision, and

(iii) the cost to the licensed shipping organisation of the land-based part in accordance with sub-paragraph (ii) is less than one half of the price paid by the customer under the single contract;

(e) the loading and unloading of cargo carried on a tonnage tax ship operated by the licensed shipping organisation, and the provision by the licensed shipping organisation of facilities used exclusively for those purposes;

(f) the consolidation or breaking of cargo carried on a tonnage tax ship operated by the licensed shipping organisation, immediately before or after the voyage, where the activity is not haulage-related;

(g) the temporary placement of cargo carried on a tonnage tax ship operated by the licensed shipping organisation, on or at the dockside, where the activity is not part of a long-term storage operation;

(h) the rental or provision to customers of containers for goods to be carried on a tonnage tax ship operated by the licensed shipping organisation;

(i) the provision of excursions for passengers of a tonnage tax ship operated by the licensed shipping organisation, where any cabin for the passenger remains available for exclusive use;

(j) advertising and marketing, if these correspond to the sale of advertising space on board tonnage tax ships.

(4) The following ancillary activities benefit at the permitted levels as follows -

(i) betting or gambling facilities normally offered to customers by seagoing passenger ships for entertainment, and

(ii) the sale to passengers on seagoing ships of luxury goods of a kind normally offered to such passengers,

Provided that the turnover from such activities amounts to less than twenty-five per cent (25%) of the turnover from the licensed shipping organisation’s shipping activities referred to in paragraph 3 of this Schedule.