Annual Tonnage Charge (ATC) Reduction Scheme

To encourage our owners in maintaining high quality ships, the Marine Department has implemented the ATC reduction scheme for Hong Kong registered ships since 1 February, 2006.

Under the ATC reduction scheme, a ship that has been continuously registered in Hong Kong for two years or more and fulfills the following conditions:

(1) Within the past two years, the ship has no detention record under any Port State Control (PSC) regime; and

(2) The full "Specified ATC" has been paid for the previous year,

The registered owner of the ship will be qualified to enjoy a 50% "Specified ATC" reduction for the following year.

For details of the "Specified ATC", please refer to the webpage on "Fees" or item 1 of Part 3 of the Schedule to the Merchant Shipping (Registration) (Fees and Charges) Regulations (Chapter 415A).

Examples

Below is the diagrammatic illustration of the payable ATC in different scenarios for reference.

Example 1: A ship is detained in the 6th year during registered with HKSR

Example 1

*Notes:
Full = Full "Specified ATC"
50% = 50% of "Specified ATC"
"Specified ATC" = ATC as specified in item 1 of Part 3 of Cap. 415A

Example 2: A ship has de-registration/re-registration(/de-reg/re-reg) operation in the 6th year during registered with HKSR and no detention during the whole demonstrated period

(de-reg/re-reg: eg. "Owner Reg – Demise Charter Reg"; "Demise Charter Reg- Owner Reg" and "Demise Charter Reg- Demise Charter Reg"

Example 2

*Notes:
Please refer to Notes in Example 1.

For enquiries about the "ATC Reduction Scheme", please email hksr@mardep.gov.hk to the Hong Kong Shipping Registry.