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DRAFT RECOMMENDATION (14882/25 – C100321/2025 – 2025/0233(NLE))

On the draft Council decision on the conclusion, on behalf of the European Union, of the United Nations Convention on the International Effects of Judicial Sales of Ships

JURI-PR-782227

Committee on Legal Affairs · Rapporteur: Ton Diepeveen

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The draft report recommends that Parliament consent to the Council decision concluding the UN Convention on the International Effects of Judicial Sales of Ships, which harmonizes the international effects of court-ordered ship sales. It raises legal concerns about national sovereignty, exclusive jurisdiction, and potential regulation shopping, and suggests possible safeguards such as exceptions for public interest and review mechanisms.

Committee position. The rapporteur welcomes the proposal and recommends that Parliament give its consent to the conclusion of the Convention, while raising legal issues and suggesting possible safeguards for future consideration.

Key points

  1. Parliament gives its consent to the conclusion of the agreement on the UN Convention on the International Effects of Judicial Sales of Ships.
  2. The Convention establishes that a judicial sale of a ship conferring full title has the same legal effects in all Contracting States, requiring deregistration or transfer of registration and prohibiting seizure for pre-existing claims.
  3. The Convention grants exclusive jurisdiction to the courts of the State of sale to decide on objections, preventing other States from initiating new proceedings.
  4. The report notes that concluding the Convention may lead Member States to relinquish control over maritime registration, property rights, insolvency law, and enforcement of creditors' rights.
  5. It warns that uniform recognition of full title could encourage regulation shopping and undermine labour, safety, and environmental standards in Member States.
  6. Possible mitigation includes allowing Member States to refuse recognition or transfer of registration for public interest reasons such as flagging, safety, environment, labour, taxes, or national security.
  7. Another option is allowing courts of the destination State to reopen or review a judicial sale under conditions like creditor claims, violations of standards, fraud, or tax evasion.
  8. A transparency requirement with prior notification to all interested parties in affected States and a mandatory consultation or objection period could be considered.

Who is affected

  • Member States, which would be obliged to recognize foreign judicial titles to sale and may lose control over maritime registration and related areas.
  • Creditors, seafarers, tax authorities, suppliers, and environmental regulators in Member States, whose local claims or interests may be affected.
  • Ship buyers and sellers, who benefit from reliable titles recognized across Contracting States.

Legal basis: Article 81(2), points (b) and (c), in conjunction with Article 218(6), second subparagraph, point (a)(v), of the Treaty on the Functioning of the European Union