Merchant Shipping Code of Ukraine (Edition of July 04, 2013)

SECTION IV. Sea Port.

Chapter 5. Marine Agency and Brokerage.

Clause 116. Forwarding and Agency Services.

In a sea port or beyond its territory, as permanent representatives of shipowner, agencies (marine agent) are operating, their function shall be providing, on the basis of marine agency agreement for an appropriate award, services in merchant shipping.

The amount of the award for services rendered by marine agencies of all forms of ownership shall be determined by the central body of executive power, ensuring the development and implementation of state policy in the field of maritime and river transport by agreement with the Ministry of Economics of Ukraine.

During the execution of marine agency agreement a marine agent, acting on behalf of shipowner, may also represent the interests of another party to the agreement providing the other party authorized him thereto, and the shipowner does not object thereto.

Merchant marine agency services shall be performed by the subjects of business activity having the license duly received in accordance with the acting legislation of Ukraine.

Clause 117. Rights and Obligations of Marine Agent.

The marine agent shall perform the formalities and actions connected with arrival, stay and departure of the vessel; assist the Master in securing contacts with port authorities, local state executive authorities, in organization of supply and servicing the vessel while in port; drawing up and registering customs and cargo documents, as well as collect freight payments and other sums for payment on demands of a Shipowner which arise out of the carriage agreement; pay, on order of the Shipowner or the Master the amounts concerned with staying in port; secure cargoes for marine lines; perform the collection of freight and cargo forwarding; crew the vessels; act on behalf of a Shipowner as well as a Party of the participants of cargo carriage in direct mixed transportation.

The Marine Agent shall:

a) perform his functions conscientiously in accordance with the interests of a Shipowner or other trustee and common practice of marine agency;

b) act within his competence;

c) not pass over the execution of his functions to another party unless said trustee has authorized him thereto.

Clause 118. Responsibilities of Shipowner or Another Trustee.

A shipowner or another trustee shall:

a) provide a marine agent with funds sufficient for performing functions thereof;

b) reimburse a marine agent any expenses incurred on his behalf or by his agreement;

c) bear liability for any actions of a marine agent taken within his competence.

In case common authority of a marine agent has been limited by a trustee, any agreement signed by said agent with a third party who acted conscientiously, shall be valid and (compulsory for said trustee unless said third) party was unaware of said limitation.

Clause 119. Cancelling Marine Agency Agreement.

Marine agency agreement signed for a certain period shall be terminated upon expiration of said time unless otherwise stated.

In case said agreement is signed for an indefinite period, then each party is at liberty to cancel said agreement provided there are sufficient reasons substantiating non-fulfillment thereof and he has notified the other party thereof not later than three months since becoming aware of said reasons.