Appendix 3 – Elements to be Included in an Agreement

 A formal written agreement or equivalent between the flag State and the RO should, as a minimum, cover the following items:

  1 Application

  2 Purpose

  3 General conditions

  4 The execution of functions under authorization:

• .1 Functions in accordance with the general authorization

• .2 Functions in accordance with special (additional) authorization

• .3 Relationship between the organization's statutory and other related activities

• .4 Functions to cooperate with port States to facilitate the rectification of reported port State control deficiencies or the discrepancies within the organization's purview

  5 Legal basis of the functions under authorization:

• .1 Acts, regulations and supplementary provisions

• .2 Interpretations

• .3 Deviations and equivalent solutions

  6 Reporting to the flag State:

• .1 Procedures for reporting in the case of general authorization

• .2 Procedures for reporting in the case of special authorization

• .3 Reporting on classification of ships (assignment of class, alterations and cancellations), as applicable

• .4 Reporting of cases where a ship did not in all respects remain fit to proceed to sea without danger to the ship or persons on board or presenting unreasonable threat of harm to the environment

• .5 Other reporting

  7 Development of rules and/or regulations – Information:

• .1 Cooperation in connection with development of rules and/or regulations – liaison meetings

• .2 Exchange of rules and/or regulations and information

• .3 Language and form

  8 Other conditions:

• .1 Remuneration

• .2 Rules for administrative proceedings

• .3 Confidentiality

• .4 Liability^footnote

• .5 Financial responsibility

• .6 Entry into force

• .7 Termination

• .8 Breach of agreement

• .9 Settlement of disputes

• .10 Use of subcontractors

• .11 Issue of the agreement

• .12 Amendments

  9 Specification of the authorization from the flag State to the organization:

• .1 Ship types and sizes

• .2 Conventions and other instruments, including relevant national legislation

• .3 Approval of drawings

• .4 Approval of material and equipment

• .5 Surveys

• .6 Issuance of certificates

• .7 Corrective actions

• .8 Withdrawal of certificates

• .9 Reporting

  10 The flag State's supervision of duties delegated to the organization:

• .1 Documentation of quality assurance system

• .2 Access to internal instructions, circulars and guidelines

• .3 Access by the flag State to the organization's documentation relevant to the flag State's fleet

• .4 Cooperation with the flag State's inspection and verification work

• .5 Provision of information and statistics on, e.g. damage and casualties relevant to the flag State's fleet.