Chartering Fishing Scheme

Mauritania authorizes the chartering of foreign ships which are then assimilated to Mauritanian registered ships

The sole difference is that there is no actual "sale of ship", but instead it calls for the establishment of a chartering contract between the foreign Ship Owner and the Mauritanian Charterer.

The contract terms shall abide to very strict wording rules and are subject to the approval of official representatives from the Mauritanian Fishery Department and from the Mauritanian Central Bank.

It shall mention the mandatory remuneration split between the parties, depending on the considered type of fish to catch

* X % for the Ship Owner.
* Y % for the Mauritanian Charterer, based on the quantities caught and the minimal yearly guaranteed value per ship.

However, in case the contractual guaranteed tonnage is not reached, the Ship Owner shall pay to the Charterer the balance between the actual catch value and the guaranteed catch value. In case the overall tonnage is greater than what was accepted as the minimal guaranteed value, a prorate split is applied to the whole catch.

Usual duration of a chartering contract is of one year only, but might be renewable (revolving).

Based on the value of the actual catch, the Ship Owner shall support the following charges: * Any expense and fee related to ship fishing operations
* Fees and taxes related to administrative formalities (to be noted that the fees, for getting a license in such a case, are lower than in the “free licensing” scheme), technical controls, safety visits and conformity visits vs. declared ship identity and characteristics,
* Foreign and Mauritanian staff salaries (to be noted that the Mauritanian authorities enforce a minimal Mauritanian staff quota of 35 % per ship. These sailors can be either embarked or not, they shall be paid)
* Food and beverages for the staff
* Ship, sailor and cargo insurance fees.

Based on the value of the Y % of catch, the Mauritanian Charterer shall support the following expenses:

· Harbor fees and export taxes
· Company taxes and turn over taxes
· Taxes related to the actual value of exported catch (Z % of the FOB value)
· Other taxes related to consignee works and transit
· Social security charges for Mauritanian staff

It’s also important to note that:
>> No anticipated payment is required from the Ship Owner but the following:

♦ A cash advance to the Charterer regarding the license fees (amount per GRT), as this must be paid to the Mauritanian Treasury between the moment the allocation of a license for the ship is obtained and the moment this license is actually delivered.
♦ A small working capital to facilitate the Charterer start of activity, i.e. harbor fees and taxes that shall be paid before the ship leaves to fishing areas. However, this working capital is to be reimbursed as soon as the Charterer gets his first remuneration as an outcome of the first fish sale.