Summary: 

On June 19, in Valletta, Malta, the Ministry of Foreign and European Affairs and Trade of Malta, Comité Maritime International, and the United Nations Commission on International Trade Law (UNCITRAL) hosted a commemorative event for the United Nations Convention on the International Effects of Judicial Sales of Ships (also known as the “Beijing Convention on the Judicial Sale of Ships”). A total of 27 countries, including Antigua and Barbuda, Cote d’Ivoire, Croatia, Cyprus, Italy, Malta, and Spain, signed the convention during the ceremony. On May 23, 2024, El Salvador joined the Convention as its first State party. While the representatives of the International Maritime Organization and the European Union commended UNCITRAL for their excellent cooperation in drafting the Convention and their pledge to support its implementation, the representatives of the host countries emphasized the significance of the Convention for improving legal certainty for ship buyers.  

Context: 

The United Nations Convention on the International Effects of Judicial Sales of Ships, also known as the “Beijing Convention on the Judicial Sale of Ships,” was adopted by the General Assembly on December 7, 2022. It establishes a harmonized regime for giving judicial sales, international effect while maintaining domestic law that governs the process of judicial sales and the situations in which judicial sales confer clean title. The Convention is intended to maximize the price that the ship is able to attract in the market and the proceeds available for distribution among creditors, as well as to promote international trade, by providing legal certainty regarding the title that the purchaser acquires in the ship as it navigates internationally. First, at the request of the purchase, the ship must be deregistered or have its registration transferred by the ship registry.  The second is that the ship cannot be arrested on the basis of a claim based on an already-existing right or interest. The third is giving the courts of the State of the judicial sale exclusive jurisdiction to hear any challenges to the judicial sale. The Convention provides for the issuance of two instruments: a notice of judicial sale and a certificate of judicial sale, to support the regime’s operation and protect the rights of parties with an interest in the ship.

Additionally, it creates an openly available internet repository for those instruments for anyone with an interest. During an event in Valletta on June 19, 2024, the following countries signed the Convention: Malta, Antigua and Barbuda, Cote d’Ivoire, Croatia, Cyprus, Italy, Malta, and Spain. Three ministers of state, ambassadors, and other high-ranking national and international dignitaries were present at the occasion, including the president of the Republic of Malta.  The importance of the Convention for improving legal certainty for ship buyers was emphasized by the host country representatives, while the representatives of the European Union and the International Maritime Organization commended UNCITRAL for their excellent cooperation in the Convention’s preparation and their pledge to support its implementation. On May 23, 2024, El Salvador became the first State party to the Convention, bringing the total number of signatory states to 27. 

Picture and Article Sources: United Nations & WFW